Midday Market Movers: Tesla, VF Corp, Marriott, MGM and More

Tesla's share price slid by 5.2% after Bloomberg first reported that the company plans to cut output of its Model Y by more than 20% at its Shanghai plant this month. China-based electric vehicle maker Xpeng saw its share price fall by 5% in response.

VF Corporation, the company behind brands such as The North Face and Timberland, dropped 8.3% after it lowered expectations for revenue and earnings in the second half of the year and announced its CEO was retiring.

After announcing a proposed $500 million private offering for convertible senior notes, Marriott saw its stock drop 3.8%. The notes, which have the option to be turned into company equity, are due in 2027.

United Airlines and Delta Airlines both gained ground following positive analyst reports. United was upgraded to "overweight" by Morgan Stanley, while Delta was named a top pick by the firm. Both airlines are expected to perform well in 2023.

Science Applications International Corporation (SAIC) stock rose 4.4% to a 52-week high after the company reported better-than-expected revenue and earnings per share for the quarter ended September 30, 2020. SAIC also raised its full-year guidance for both revenue and earnings per share.

Shares of Silvergate Capital dropped more than 5% after Morgan Stanley downgraded the crypto bank to underweight from equal weight. The investment bank cited potential revenue pressure following the fallout from the FTX incident.

Signature Bank's stock took a hit after Morgan Stanley downgraded it from "overweight" to "equal weight." Morgan Stanley believes that the bank will face significantly higher funding costs in the next few quarters as it tries to keep customers' deposits. They also see crypto exposure as a key risk for the bank.

Activision Blizzard's shares rose 1.3% after news reports that Microsoft would defend its $69 billion acquisition deal in court. Microsoft's shares fell 1.5%.

MGM Resorts International shares rose 2% after Truist upgraded the company to "buy" from "hold." Truist cited a strong events calendar in Las Vegas over the next two years as a key reason for the upgrade. MGM could also benefit from renewed optimism about China relaxing its Covid restrictions, which could boost travel to Macau and other casino hubs.

Starbucks' stock dropped 1.4% after Deutsche Bank downgraded it from a buy to a hold rating. The bank said that the recent climb in Starbucks' stock has made the outlook for further gains unfavorable.

After China loosened more Covid restrictions to accelerate the reopening of the economy, shares of Chinese companies listed in the U.S. rose. Alibaba climbed 0.5%, and Pinduoduo jumped 2%. However, many Chinese stocks pared earlier gains as the broader market sold off amid fears of aggressive monetary tightening.

Clovis Oncology shares fell 12.1% on Monday after the company filed a disclosure last week indicating that it expects to file for Chapter 11 bankruptcy in the near future. The biopharmaceutical company, which focuses on cancer agents, has been struggling financially in recent years. Monday's sell-off suggests that investors are losing confidence in the company's ability to turn things around.