A Gap store in New York City, August 2, 2020.
Scott Mlyn | CNBC
Find out which companies are making headlines in midday trading.
Gap, Nordstrom – Shares of Gap and Nordstrom fell after companies reported disappointing quarterly results Tuesday night citing rising labor costs, inventory issues, purchasing costs and closures factories as challenges. Spread shares fell 22%. Nordstrom fell 28%. Shares of other retailers also suffered on Wednesday. Tapestry fell 3.2%, and Ralph Lauren and PVH slipped more than 1%.
Autodesk – Shares of the software company fell more than 16% despite declining results for its most recent quarter. Autodesk released a profit and revenue forecast for the fourth quarter that was significantly lower than estimated.
HP Inc. – HP shares jumped more than 10% after a better-than-expected earnings report. The company posted adjusted quarterly earnings of 94 cents per share, 6 cents above Refinitv’s consensus estimate. The computer maker also posted good prospects amid strong consumer and business demand for personal computers and printers.
Deere & Co – Shares of the farm equipment maker jumped nearly 6% after the company reported better-than-expected quarterly profits. Deere posted earnings of $ 4.12 per share last quarter, beating the consensus estimate of $ 3.90, according to Refinitiv. Deere said strong demand for its products helped cushion the impact of a month-long workers’ strike. Its turnover is however slightly lower than analysts’ forecasts.
Dell Technologies – Dell shares rose 4% after reporting adjusted quarterly earnings of $ 2.37 per share, beating the consensus estimate of $ 2.18 amid rising demand for its computers and servers, and released stronger-than-expected forecasts for the current quarter.
VMware – Shares of the cloud computing company rose 3% after the company reported quarterly earnings decline and gave an optimistic forecast for the current quarter as global demand for cloud computing services increases.
Pure Storage – Shares of the technology and data storage company gained nearly 13% after the company beat third-quarter earnings estimates and released a better-than-expected earnings outlook for the current quarter.
Chevron – Shares of the energy giant rose more than 1% after RBC raised the company to an outperformance rating. The company said Chevron can benefit “from a strong commodity cycle over the next few years”, adding that the company has “a lot more stability in its portfolio than its peers.” RBC estimates that stocks can jump nearly 25% from Tuesday’s closing price. Other names in the industry also advanced on Wednesday, with Devon Energy, Diamondback Energy and Baker Hughes all adding more than 3%.
Buy Now, Pay Later for Stocks – Installment payment names have been on the rise ahead of the Thanksgiving holiday and most of the holiday shopping season. Buyers are expected to spend more on gifts this year due to higher prices and product shortages. Affirm rose 3.5%. Afterpay, whose acquisition by Square is expected to be finalized in 2022, gained 2.6%. Shares of Marqeta, a now pay later buy solutions provider, climbed more than 10%.
– CNBC’s Pippa Stevens, Yun Li and Hannah Miao contributed reporting