People visit Estee Lauder booth on day two of the 2nd China International Import Expo (CIIE) at the National Exhibition and Convention Center on November 6, 2019 in Shanghai, China. The 2nd China International Import Expo (CIIE) is held in Shanghai on November 5-10. (Photo by Xu Congjun/VCG via Getty Images)
Xu Congjun | VCG | Visual China Group | Getty Images
Check out the companies making headlines midday Monday:
Estee Lauder — Shares of the cosmetic company sunk more than 5% following a downgrade from Oppenheimer to perform from outperform on heightened fear about the spreading deadly coronavirus. The Chinese consumer has represented a key driver in Estee Lauder’s business in recent years, offsetting weakness in the United States, Oppenheimer noted. Credit Suisse estimates the makeup company has about 17% revenue exposure in China. Oppenheimer lowered its price target on Estee Lauder to $210 per share from $230 per share.
American Express — American Express shares dipped more than 3% after an analyst at Stephens downgraded them to equal weight from overweight. The analyst noted the downgrade was based on valuations, adding he doesn’t see a “material catalyst” to drive the shares higher in 2020.
Inovio Pharmaceuticals — Inovio Pharmaceuticals surged 23% after the biotech company said last week it was granted $9 million by the Coalition for Epidemic Preparedness Innovations to develop a vaccine against the coronavirus. The stock has rallied nearly 60% in the past week. However, analysts have warned the company could still be years away from any vaccine for commercial production.
Clorox — As the broader market sold off on China virus worries, shares of Clorox rose more than 2%. Investors bought into the consumer goods manufacturer, which makes disinfecting wipes that kill bacteria and prevent the spread of diseases.
Wynn Resorts, Las Vegas Sands, MGM Resorts — Shares of major hotel and casino chains dropped on fears the coronavirus would dent travel. Through the third day of the Chinese New Year holiday, Macau visits were down 60% year-over-year, according to Deutsche Bank. Wynn Resorts was also downgraded by Bank of America to neutral from buy on Monday. The firm lowered its price target to $150 per share from $160 per share. Shares of Wynn Resorts dropped 7.6%, shares of Las Vegas Sands tanked 7.3% and MGM Resorts fell 2.3%.
Nike — Shares of Nike fell 1.8% amid the deepening coronavirus fears. The retailer has high revenue exposure to China, generating roughly 17% sales each year from mainland China, according to Credit Suisse estimates. The bank said it could see a 3% to 5% decrease in earnings per share next quarter if the virus continues to spread.
Micron Technology, Nvidia — The chipmakers dropped 4% and 4.6%, respectively, as worries over how the coronavirus would impact the global economy increased. Micron was on pace for its biggest decline since Oct. 18, while Nvidia headed for its worst session since Aug. 23.
American Airlines — Shares of the airline slid more than 6% and was among the travel-related stocks under pressure Monday as the number of deaths from the coronavirus rose. United Airlines, Delta and Hawaiian Holdings were all down more than 4% as investors weighed the impact from a potential global slowdown in air travel.
Chevron, Exxon Mobil, Concho Resources — Energy stocks followed oil prices lower amid growing fears of a global economic slowdown. Chevron and Exxon slid 1.4% and 2%, respectively, while Concho dropped 4.8%. U.S. crude prices slid 2.5%.