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Check out the companies making headlines in midday trading.
Dell — Shares of the tech company jumped 7% following news that it was exploring options for its majority stake in VMware, which is worth roughly $50 billion. A sale or spinoff of the investment in the software company could not happen until after September 2021, CNBC’s David Faber reported.
Carnival, Norwegian Cruise Line, Royal Caribbean Cruises — Shares of cruise lines cratered on Wednesday as investors ditched riskier stocks on concerns about a resurgence in coronavirus cases. Shares of Norwegian Cruise Line fell 10.9% and shares of Carnival Corp. dropped 9.9%. Royal Caribbean fell more than 10%. Barclays also downgraded Royal Caribbean and Norwegian to equal weight from overweight Wednesday.
Hertz — Shares of bankrupt car rental company Hertz spiked again on Wednesday, rising by more than 50%. Jefferies said in a note that it believes AutoNation and Carmax are considering buying cars from Hertz. The stock, which closed at $1.24 per share on Tuesday, hit $2.49 per share at one point on Wednesday. The stock had been trending down in less-volatile trading in recent sessions.
Cheesecake Factory — Shares of Cheesecake factory tanked more than 11% after JPMorgan downgraded the restaurant chain to underweight from neutral. The bank said destination-oriented restaurants are not as appealing in the coronavirus environment.
Disney — Shares of Disney fell more than 4% to after its theme park workers urged to postpone the reopening amid the rise in new coronavirus cases in Florida. More than 7,200 have signed a petition asking Disney and government officials to delay the Disney World reopening next month. Disney has plans for a phased reopening of Walt Disney World’s Magic Kingdom and Animal Kingdom on July 11, while Epcot and Hollywood Studios would reopen on July 15.
United, American, Delta, Southwest — Airlines fell on Wednesday as news of an uptick in coronavirus infections pulled investors away from reopening trades. United Airlines fell more than 6% and American Airlines ticked 4.5% lower. Southwest and Delta lost 4.8% and 6.7%, respectively. Alaska Air Group dropped 4%.
Gap, Kohl’s, Simon Property — Shares of retailers plunged as a shape rise in new coronavirus cases in some states damped hopes for a successful reopening. Apparel retailer Gap dropped 10%, while shares of Kohl’s fell nearly 8%. Simon Property Group, the U.S.’ biggest mall operator, tanked more than 9%.
CNBC’s Jesse Pound and Maggie Fitzgerald contributed reporting.
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Check out the companies making headlines in midday trading.