Check out the companies making headlines in midday trading Tuesday.
Exxon Mobil — Shares of Exxon Mobil jumped 5.5% after Credit Suisse upgraded them to outperform from neutral and said they can jump another 45% from current levels. The oil and gas company’s divergent corporate strategy sets it up well to capitalize on the jump in oil prices, the firm said.
Diamondback Energy — The energy company’s shares rose more than 5% after Diamondback’s board approved an increase to its capital return program to at least 75% of free cash flow, from its previous commitment of at least 50% of free cash flow.
Alphabet — The Google parent’s shares gained 4.8% following an AdAge report that the search giant is in talks with Netflix about a potential advertising partnership. Google has emerged a front-runner to partner with Netflix, according to the report.
Kellogg — The cereal company’s shares gained almost 4% after Kellogg announced plans Tuesday to split into three separate public companies that would be centered around its snacking, cereal and plant-based businesses. The tax-free spinoffs are expected to be completed by the end of 2023.
Tesla — The EV maker’s shares climbed 10% after CEO Elon Musk gave more clarity on planned job cuts that were announced earlier this month. Musk said the company will lay off 3.5% of the workforce, calling the amount “not super material.”
Spirit Airlines — The discount air carrier saw its shares jump 8% after JetBlue boosted its takeover offer for the company by $2 per share to $33.50 per share. Spirit is also fielding an offer Frontier Airlines. The company has said it expects to decide on the proposal by June 30.
Palantir Technologies — Shares surged more than 7% after Bank of America initiated coverage of the defense tech company with a buy rating. The firm said investors are underestimating the demand for artificial intelligence that should boost Palantir’s stock.
Centene — The health-care company’s stock added 4.8% after Credit Suisse upgraded it to outperform from neutral, saying its headwinds are already priced in and that it could climb another 10% from its current price.
Lennar — The homebuilder’s stock jumped 3% after Lennar’s fiscal second-quarter results beat expectations. The company earned $4.49 per share on $8.36 billion in revenue. Analysts surveyed by Refinitiv were expecting $3.96 per share on $8.08 billion of revenue. However, the company’s executive chairman commented on the uncertainty in the housing market in the face by saying that third-quarter guidance was closer to “guessing” than “guiding.”
— CNBC’s Jesse Pound and Sarah Min contributed reporting