Novavax, Shake Shack, Tesla, Apple & more

Check out the companies making headlines in midday trading: 

Novavax — The biotech stock soared 29{3c4481f38fc19dde56b7b1f4329b509c88239ba5565146922180ec5012de023f} after the company announced that it was awarded $1.6 billion in funding from the federal government to help develop its Covid-19 vaccine candidate. The company said it could possibly deliver the vaccine by the end of the year.

Facebook, Netflix, Microsoft, Apple – The strength in Big Tech led the Nasdaq Composite to another all-time high. Shares of Facebook gained nearly 3{3c4481f38fc19dde56b7b1f4329b509c88239ba5565146922180ec5012de023f}, while Apple, Microsoft, Google-parent Alphabet and Netflix rose at least 1{3c4481f38fc19dde56b7b1f4329b509c88239ba5565146922180ec5012de023f} each. Microsoft, Netflix, Amazon and Facebook all hit new intraday highs during Tuesday’s session. Amazon traded 0.2{3c4481f38fc19dde56b7b1f4329b509c88239ba5565146922180ec5012de023f} higher at a record, after topping $3,000 apiece for the first time on Monday. 

Shake Shack — Shares of the restaurant chain fell more than 5{3c4481f38fc19dde56b7b1f4329b509c88239ba5565146922180ec5012de023f} on Tuesday after the company announced its sales numbers for the second quarter, which showed a 49{3c4481f38fc19dde56b7b1f4329b509c88239ba5565146922180ec5012de023f} decline in same-store sales compared with last year. The company said that the speed of its sales recovery is uncertain due to the “ongoing volatility related to COVID-19” and that stores that reopened in June still saw “significantly reduced sales volumes.” The company also said that nationwide protests and the associated curfews took a bite out of second-quarter sales.

United, American, Delta and Southwest Airlines — Shares of the major U.S. airline companies fell across the board in midday trading as another wave of coronavirus angst checked travel stocks. United and American each dropped 5{3c4481f38fc19dde56b7b1f4329b509c88239ba5565146922180ec5012de023f}, Delta lost 3{3c4481f38fc19dde56b7b1f4329b509c88239ba5565146922180ec5012de023f} and JetBlue shed 2.5{3c4481f38fc19dde56b7b1f4329b509c88239ba5565146922180ec5012de023f} as investors grew more worried about Covid-19 infections and government efforts to restrict transit and business. Southwest also declined by 2.5{3c4481f38fc19dde56b7b1f4329b509c88239ba5565146922180ec5012de023f}. Airlines have been one of the hardest-hit industries as people refrain from vacations and non-essential travel.

Tesla — Shares of the electric vehicle maker rose more than 2{3c4481f38fc19dde56b7b1f4329b509c88239ba5565146922180ec5012de023f} to hit an all-time intraday high. Morgan Stanley auto analyst Adam Jonas raised his base case price target and bull case target on the stock to $740 and $2,070 respectively, although he did reiterate his underweight rating based on longer-term concerns.

Carnival, Norwegian Cruise Line, Royal Caribbean Cruises — Shares of cruise lines dropped on Tuesday as investors ditched riskier stocks on concerns about an uptick in coronavirus cases. Shares of Norwegian Cruise Line fell 2.5{3c4481f38fc19dde56b7b1f4329b509c88239ba5565146922180ec5012de023f} and shares of Carnival Corp. dropped 3.5{3c4481f38fc19dde56b7b1f4329b509c88239ba5565146922180ec5012de023f}. Royal Caribbean ticked 2.1{3c4481f38fc19dde56b7b1f4329b509c88239ba5565146922180ec5012de023f} lower.

Nikola — Shares of the battery-electric and hydrogen-powered truck maker slid more than 9{3c4481f38fc19dde56b7b1f4329b509c88239ba5565146922180ec5012de023f} after RBC initiated coverage on the stock with a sector perform rating. “Still more of a business plan than business … truck specs look attractive, but real-world driving/tech applications unproven. As such, biz model economics are illustrative,” the firm said. RBC’s $46 target is about 6{3c4481f38fc19dde56b7b1f4329b509c88239ba5565146922180ec5012de023f} below where the stock closed on Monday.

Gap, Kohl’s, Nordstrom — Shares of retailers ticked lower on Tuesday as an increase in coronavirus cases in the U.S. worried investors about reopening plans. Gap fell nearly 3{3c4481f38fc19dde56b7b1f4329b509c88239ba5565146922180ec5012de023f}, and Kohl’s and Nordstrom both lost more than 2{3c4481f38fc19dde56b7b1f4329b509c88239ba5565146922180ec5012de023f}. TJX Companies and Best Buy lost more than 1{3c4481f38fc19dde56b7b1f4329b509c88239ba5565146922180ec5012de023f}. 

MGM Resorts, Las Vegas Sands, Wynn Resorts — Casinos stocks fell on Tuesday as coronavirus spread dented sentiment. MGM Resorts and Wynn Resorts lost about 1{3c4481f38fc19dde56b7b1f4329b509c88239ba5565146922180ec5012de023f} each and Las Vegas Sands fell nearly 2{3c4481f38fc19dde56b7b1f4329b509c88239ba5565146922180ec5012de023f}. 

— With reporting from CNBC’s Pippa Stevens, Yun Li, Jesse Pound and Tom Franck.