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Stocks making the biggest moves midday: Morgan Stanley, American Airlines, Twitter, Nikola & more

A woman rides past the New York Stock Exchange (NYSE) on July 13, 2020 at Wall Street in New York City.

Johannes Eisele | Getty Images

Here are the companies making headlines in midday trading:

Morgan Stanley — Shares of the bank rose 4% after it reported strong trading revenues and better-than-expected earnings for the second quarter. CEO James Gorman told CNBC that the bank was well-positioned to possibly increase its dividend and resume buybacks in 2021. 

Peloton — Shares of the stationary bike maker fell more than 3% following a downgrade to neutral from buy at UBS. The Wall Street firm said the stock is fairly valued and UBS sees limited upside for the stock that has already gained more than 120% this year.

Twitter — Twitter fell more than 1% after several high-profile accounts were hacked as part of a digital currency scam. The accounts of Tesla CEO Elon Musk, presidential candidate Joe Biden and Microsoft founder Bill Gates.

American Airlines — Shares of the airline fell more than 6% after sending 25,000 workers warnings of potential furloughs, amid the drop in air travel demand due to the pandemic. American also announced a partnership with JetBlue Thursday that will allow the airlines to sell seats on each other’s planes.

Bank of America — The financial institution’s shares fell 2.4% despite beating expectations on the top and bottom lines for the second quarter. Bank of America did increase its provisions for credit losses by $4 billion and saw interest income decline by 11% during the quarter. 

Nikola — Shares of the electric vehicle company fell by 3.5% after Deutsche Bank initiated coverage of the stock with a hold rating. The bank said in a note that the stock’s valuation represents the mid-term potential of the company “without necessarily discounting the risks.”

Tesla — The volatile electric vehicle stock fell by more than 4% on Thursday. Citi bank nearly doubled its price target for the stock, but the new price was still more than $1,000 below where trading closed on Wednesday. 

Norwegian Cruise Line Holdings — The cruise stock plunged 12% after Norwegian announced a new round of financing to help it stay afloat during the pandemic. The financing includes a secondary stock offering of $250 million. 

Alcoa — Shares of the aluminum company rose 6.5% after it reported a smaller-than-expected loss for the second quarter. The company reported an adjusted loss of 2 cents per share, which was in the range of guidance given last week. Analysts surveyed by Refinitiv had expected a loss of 38 cents per share. 

Sleep Number — The mattress stock dropped 8.8% after the company reported a 20% decline in net sales year-over-year for the second quarter. The company did not issue new guidance, citing the ongoing uncertainty caused by the pandemic. 

— CNBC’s Maggie Fitzgerald and Fred Imbert contributed to this story. 

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