By Geoffrey Smith
Investing.com -- Stocks in focus in premarket trade on Tuesday, March 10th. Please refresh for updates.
- 8:37 AM ET: American Airlines (NASDAQ:AAL) stock rose 7.6% after the company announced further cuts to its summer schedule in response to falling demand triggered by the coronavirus outbreak.
- The company said it will cut trans-Pacific capacity at the summer peak by 55%, and will cut overall international capacity by 10% from prior plans. Flights from Los Angeles to Hong Kong and mainland China will be suspended through the summer.
- American Airlines (NASDAQ:AAL) will also cut domestic capacity by 7.5% in April.
- Delta Air Lines (NYSE:DAL) stock also rose, by 3.2% after it, too, announced further capacity cuts and said it will defer $500 million of planned capital expenditures and suspend its buyback program.
- Delta is cutting domestic capacity, which accounted for 72% of total capacity last year, by 10%-15%. Transatlantic capacity (15% of last year’s total) will be cut by 15%-20% and Pacific capacity (6% of total) will be cut by two-thirds.
- Marathon Oil (NYSE:MRO) stock rose 28% after it said it would cut its 2020 capital spending budget by at least $500 million from an originally-planned $2.4 billion, aiming to conserve cash in a lower price environment.
- In addition, Marathon said it has $3.9 billion of available liquidity and no near-term debt maturities.
- 8:44 AM ET: Stitch Fix (NASDAQ:SFIX) stock fell 29% after the company issued guidance for its fiscal third quarter of around $470 million, well below the Wall Street consensus of $506 million.
- 8:51 AM ET: Zoom Video Communications (NASDAQ:ZM) stock was up 2.5%. The maker of videoconferencing software was one of the better-performing stocks during Monday’s rout, losing only 0.5%.
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Occidental Petroleum (NYSE:OXY) was up 25%, recovering partially after losing more than half its value on Monday. Occidental was particularly exposed to the oil price crash, having borrowed heavily to finance its acquisition of fellow exploration & production company Anadarko last year.
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8:56 AM ET: Royal Caribbean Cruises (NYSE:RCL) stock rose 7.5% after the cruise operator withdrew its guidance for the current quarter and the full year due to the uncertain impact of the Covid-19 virus.
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The stock had fallen over 25.7% on Monday.
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The company said it has increased its revolving credit facility by $550 million and will take other actions to improve liquidity by at least another $1.7 billion this year, chiefly through cutting capital and operational spending.
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Cypress Semiconductor (NASDAQ:CY) rose 46.4% after a U.S. national security review cleared its proposed takeover by German chipmaker Infineon Technologies (OTC:IFNNY).