By Geoffrey Smith
Investing.com -- Stocks in focus in premarket trade on Monday, May 4th.
- Airline stocks are all under pressure after Warren Buffett disclosed that Berkshire Hathaway (NYSE:BRKa) had sold all of its positions in Delta, United, American and Southwest, in the belief that the long-term outlook for returns in the industry had changed because of the virus.
- Delta Air Lines (NYSE:DAL) stock, American Airlines (NASDAQ:AAL) stock and United Airlines (NASDAQ:UAL) stock were all down by between 10% and 11%.
- Southwest Airlines (NYSE:LUV) stock was down 7.6%.
- Berkshire Hathaway (NYSE:BRKb) stock was also down 1.2% amid disappointment that the legendary investor was still struggling to find attractive investments even at what by recent standards at least are depressed valuations.
- Tyson Foods (NYSE:TSN) stock fell 7.3% after the company said it expects disruptions to meat production to continue for the rest of the year.
- The company said it expects meat sales to fall in the second half due to restaurant closures across the country, only partly offset by rising sales to retailers.
- “"We are experiencing multiple challenges related to the pandemic,” Tyson said. “These challenges are anticipated to increase our operating costs and negatively impact our volumes for the remainder of fiscal 2020."
- Walt Disney (NYSE:DIS) stock was down 3.2% after analyst Michael Nathanson of MoffattNathanson reportedly downgraded the company to 'neutral' from 'buy', saying that the impact of the coronavirus pandemic will be longer and deeper than thought.
- That's partly because the company is vulnerable to further waves of infections that could depress its theme park business for a long time. Nathanson wrote that the parks business tends to be a lagging indicator.
- Virgin Galactic (NYSE:SPCE) stock fell 6.0% after the company's shareholders filed to sell 150 million shares at a proposed maximum price of $17.52. The block equates to nearly 60% of the company.
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