In midday trading, a variety of companies were making headlines for their stock movements. Abercrombie & Fitch saw a significant increase of 9.1% after JPMorgan added it to its positive catalyst watch list. Analysts were optimistic about the teen apparel retailer’s brands, including Hollister, which showed momentum during the back-to-school shopping season. However, ultra-low-cost carrier Spirit Airlines experienced a sharp decline of about 24.5% following reports of potential bankruptcy after a failed merger with JetBlue. JetBlue, on the other hand, saw its shares jump more than 15% on the news.
Electric vehicle maker Rivian Automotive slipped by 3.1% after cutting its annual production guidance for 2024 due to a supply shortage, reducing its forecasted vehicle production from 57,000 to between 47,000 to 49,000. Conversely, Vistra Corp, a utility company, continued its recent rally by rising 4.5%. It has overtaken Nvidia as the top gainer on the S & P 500 this year, with its stock gaining in 18 of the past 19 trading sessions. Biopharmaceutical company Summit Therapeutics also saw a 2.6% increase after the Food and Drug Administration granted fast-track designation to its cancer drug, ivonescimab, for patient treatment.
In the world of video game publishing, Ubisoft Entertainment experienced a surge of 30.7% in its stock price after reports that Tencent and the Guillemot family, minority shareholders of Ubisoft, are considering a potential buyout of the company. Precious metals producer SilverCrest Metals also made waves, with shares rising by approximately 9% following news of its acquisition by Coeur Mining at an implied stock value of around $1.7 billion. Coeur Mining, on the other hand, saw its shares fall by 7%. Zim Integrated Shipping Services, however, saw a sharp decline of 12.6% after U.S. dockworkers and the United States Maritime Alliance reached a tentative agreement to end the port strike, leading to losses for other international shipping stocks including Danish shipping giant Maersk at 5%.
CVS Health, a major healthcare company, saw its shares increase by nearly 2.7% following reports that its board is engaging with advisors to start a strategic review of its business. The company is considering splitting up its retail pharmacy and insurance units as it deals with higher-than-expected medical costs in its insurance unit and other issues. This potential turnaround in strategy would mark a significant shift from the company’s longtime approach. Overall, a diverse range of industries and companies were in the spotlight during midday trading, with some experiencing significant gains while others faced challenges and declines.
