With little general news to move the broader markets, stocks drifted lower in Tuesday’s midday action, kicking off the 2023 trading year with a decline. Southwest Airlines (NYSE:LUV) was among the big names losing ground, returning to negative territory as the company attempts to get its schedule back on track after a disastrous wave of cancellations during the Christmas holiday.
Molson Coors (TAP) was another notable midday decliner. Shares dropped in the wake of an analyst downgrade. At the same time, Linde (LIN) fell on an unfavorable legal turn in Russia.
Looking to the upside, Coty (COTY) bucked the overall downward trend. Shares rallied following a bullish analyst comment.
Decliners
Southwest Airlines (LUV) reversed a rebound in Tuesday’s midday trading, dropping more than 4% despite signs that the company has begun to clear up the scheduling snafus that led to a wave of flight cancellations during Christmas week.
Data presented by FlightAware showed a decline in LUV’s rate of cancellations over the New Year’s weekend. However, delays remained elevated.
Elsewhere, a bearish analyst comment prompted selling in Molson Coors (TAP), with shares falling more than 3% in midday action. Wells Fargo downgraded the beer brewer to Underweight from Equal Weight, citing significant earnings risk going into 2023 related to weak volumes and the continued impact of inflation.
Meanwhile, Linde (LIN) slumped after a Russian court ordered the freezing of nearly $500M of company assets. According to Reuters, the move relates to a dispute centered on a Russian joint venture building a gas complex at the Baltic Sea port of Ust-Luga. The news sent the stock lower by 3% in midday trading.
Gainer
Coty (COTY) advanced in intraday action following an upgrade from Piper Sandler. The firm raised its rating on the cosmetics company to Overweight from Neutral, pointing to improving macroeconomic conditions.
Analyst Korinne Wolfmeyer highlighted COTY’s high exposure to China and a diversified portfolio as reasons for optimism. COTY advanced about 2% on the upgrade.
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