Unnamed: 0
stringlengths 3
8
| Date
stringlengths 23
23
| Article_title
stringlengths 1
250
| Stock_symbol
stringlengths 1
5
| Url
stringlengths 44
135
| Publisher
stringclasses 1
value | Author
stringclasses 1
value | Article
stringlengths 1
343k
| Lsa_summary
stringlengths 3
53.9k
| Luhn_summary
stringlengths 1
53.9k
| Textrank_summary
stringlengths 1
53.9k
| Lexrank_summary
stringlengths 1
53.9k
|
|---|---|---|---|---|---|---|---|---|---|---|---|
2100.0
|
2023-11-20 00:00:00 UTC
|
Southwest, other US airlines face holiday travel test after 2022 blizzard
|
AAL
|
https://www.nasdaq.com/articles/southwest-other-us-airlines-face-holiday-travel-test-after-2022-blizzard
|
nan
|
nan
|
By Rajesh Kumar Singh
CHICAGO, Nov 20 (Reuters) - Andrew Watterson knows the cost of flight disruptions.
The chief operating officer of Southwest Airlines LUV.N found himself in the eye of a storm after a blizzard last December forced the company to cancel almost 17,000 flights, disrupting travel plans for about 2 million customers.
With this week's U.S. Thanksgiving holiday kicking off the holiday travel season, Watterson can ill afford another fiasco. His counterparts at other carriers are also under pressure to deliver a smooth operation in a period when passenger traffic is expected to hit all-time highs.
Airlines have taken measures to beef up winter operations including investments in weather forecast technology and de-icing equipment, and increased staffing and training.
The high-profile operational meltdown cost Southwest more than $1 billion and prompted scrutiny from U.S. Congress and other government agencies. Watterson himself faced criticism from U.S. lawmakers for the debacle.
However, in an interview with Reuters, the executive cited Southwest's technology upgrades and investments made since the Dallas-based carrier's meltdown to help deal with any weather event this year.
"We are now so much better prepared," he said.
The expected record travel comes at a time when airlines are grappling with a shortage of air-traffic controllers, congested airspace and limitations on runways and airport gates, forcing many companies to cut flights.
Southwest attributed its service breakdown last Christmas to a "historic" winter storm, both in size and scale, that caused frozen jet bridges and icy aircraft engines. Its problems, however, were compounded by a dated system for scheduling of crews.
To make its winter operations more resilient, Watterson said Southwest invested in de-icing trucks and de-icing pads across its network. It also spent the summer training its ramp agents for frost and cold temperatures, and increased staff at airports in colder climates.
The airline has especially focused on operations in Denver and Chicago, where one-fourth of its crews are based. Both cities were badly hit by the storm last year.
To streamline communication and decision-making, it has consolidated the teams that design flight schedules and oversee operations. Southwest has also rolled out a new technology to manage large-scale flight disruptions.
Southwest is facing a civil fine from the U.S. Transportation Department for last year. Watterson acknowledged the company fell short, but touted subsequent improvements in operational performance.
He said the percentage of Southwest's scheduled flights that are not canceled is at a 10-year high. And the company handled a snowstorm in Denver last month with few problems.
"To me, that was our pre-season game," Watterson said.
Last year's meltdown led to a dip in Southwest's ticket sales in early 2023, but customers have forgiven the company as bookings for this December are stronger than last year.
MINIMIZING CANCELLATIONS
The holiday disruptions have also prompted reviews at other airlines.
Alaska Airlines ALK.N, for example, is trying to get better equipped in handling weather at its key Seattle hub.
Chief Operating Officer Constance von Muehlen said in an interview that the company has teamed with meteorologists at the University of Washington to obtain localized weather forecast for improved predictability. It has doubled the available space to de-ice planes.
Alaska also capped the number of departures per hour out of Seattle to minimize cancellations.
Similarly, United Airlines UAL.O has cut flights out of Newark, New Jersey, to minimize delays. American Airlines AAL.O is leaning on technology to recover faster from large-scale disruptions, COO David Seymour said in an interview.
Delta DAL.N has said its operational performance has been strong heading into the holiday season and it is better placed in terms of crew availability.
Carriers' performance this year has been encouraging, with flight cancellations down to just 1.4%, according to data from the FlightAware website.
The Federal Aviation Administration (FAA) earlier this month told U.S. Congress that airlines are better staffed and prepared for this year's holiday rush.
But weather is always unpredictable.
"We never quite know when the weather will hit us," von Muehlen said. "But, obviously, it's most impactful when it's during the holiday."
(Reporting by Rajesh Kumar Singh in Chicago; Additional reporting by Doyinsola Oladipo in New York and David Shepardson in Washington Editing by Ben Klayman and Matthew Lewis)
((rajeshkumar.singh@thomsonreuters.com; +1-313-484-5370; Reuters Messaging: rajeshkumar.singh.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
American Airlines AAL.O is leaning on technology to recover faster from large-scale disruptions, COO David Seymour said in an interview. The chief operating officer of Southwest Airlines LUV.N found himself in the eye of a storm after a blizzard last December forced the company to cancel almost 17,000 flights, disrupting travel plans for about 2 million customers. The expected record travel comes at a time when airlines are grappling with a shortage of air-traffic controllers, congested airspace and limitations on runways and airport gates, forcing many companies to cut flights.
|
American Airlines AAL.O is leaning on technology to recover faster from large-scale disruptions, COO David Seymour said in an interview. By Rajesh Kumar Singh CHICAGO, Nov 20 (Reuters) - Andrew Watterson knows the cost of flight disruptions. The chief operating officer of Southwest Airlines LUV.N found himself in the eye of a storm after a blizzard last December forced the company to cancel almost 17,000 flights, disrupting travel plans for about 2 million customers.
|
American Airlines AAL.O is leaning on technology to recover faster from large-scale disruptions, COO David Seymour said in an interview. The chief operating officer of Southwest Airlines LUV.N found himself in the eye of a storm after a blizzard last December forced the company to cancel almost 17,000 flights, disrupting travel plans for about 2 million customers. Airlines have taken measures to beef up winter operations including investments in weather forecast technology and de-icing equipment, and increased staffing and training.
|
American Airlines AAL.O is leaning on technology to recover faster from large-scale disruptions, COO David Seymour said in an interview. Airlines have taken measures to beef up winter operations including investments in weather forecast technology and de-icing equipment, and increased staffing and training. He said the percentage of Southwest's scheduled flights that are not canceled is at a 10-year high.
|
2101.0
|
2023-11-17 00:00:00 UTC
|
ASIA COPPER WEEK-Anglo American on the lookout for lithium as EV metals demand grows
|
AAL
|
https://www.nasdaq.com/articles/asia-copper-week-anglo-american-on-the-lookout-for-lithium-as-ev-metals-demand-grows
|
nan
|
nan
|
By Mai Nguyen
SHANGHAI, Nov 17 (Reuters) - Miner Anglo American AAL.L is identifying opportunities to secure off-take lithium materials amid increasing demand for battery metals, a company executive said.
Lithium is a key metal used in electric vehicle (EV) batteries and demand for the metal has been growing strongly in the past few years as economies transition to green energy.
The company does not own lithium mines but produces copper, nickel and iron ore, other raw materials needed to manufacture batteries, electric cars (EVs) and renewable infrastructure that will help the world transition.
"We don't have a lithium mine and we don't trade it, but we are on the lookout for lithium," said Paul Ward, head of marketing for base metals at Anglo American.
Anglo American's customers are asking for more types of metals including battery materials nickel and lithium, said Ward on the sidelines of the CRU World Copper Conference Asia in Shanghai this week.
The miner looks to provide debt financing for brown-field or green-field projects, with the objective of getting hold of off-take material for battery metals, Ward said.
"It's a very competitive market, but we're very engaged in and then we put resources and investment behind it to find the right opportunity," he said.
"If there are opportunities to secure lithium that's already been mined, that we feel comfortable with, and that is in the right form that we can sell directly to our customers, then that's also of interest," he said.
As the auto industry gears up to shift to making only EVs - spurred on by likely bans on fossil-fuel cars over time - the pressure to produce environmentally and socially responsible batteries has increased.
Ward said there was strong interest across the supply chain to declare the carbon content, or information about human rights, of the material and Anglo American has had about 100 customers joining its blockchain-based technology platform Valutrax.
(Reporting by Mai Nguyen in Shanghai; Additional reporting by Clara Denina in London; editing by Robert Birsel)
((mai.nguyen@thomsonreuters.com; Reuters Messaging: mai.nguyen.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
By Mai Nguyen SHANGHAI, Nov 17 (Reuters) - Miner Anglo American AAL.L is identifying opportunities to secure off-take lithium materials amid increasing demand for battery metals, a company executive said. The company does not own lithium mines but produces copper, nickel and iron ore, other raw materials needed to manufacture batteries, electric cars (EVs) and renewable infrastructure that will help the world transition. Ward said there was strong interest across the supply chain to declare the carbon content, or information about human rights, of the material and Anglo American has had about 100 customers joining its blockchain-based technology platform Valutrax.
|
By Mai Nguyen SHANGHAI, Nov 17 (Reuters) - Miner Anglo American AAL.L is identifying opportunities to secure off-take lithium materials amid increasing demand for battery metals, a company executive said. Anglo American's customers are asking for more types of metals including battery materials nickel and lithium, said Ward on the sidelines of the CRU World Copper Conference Asia in Shanghai this week. The miner looks to provide debt financing for brown-field or green-field projects, with the objective of getting hold of off-take material for battery metals, Ward said.
|
By Mai Nguyen SHANGHAI, Nov 17 (Reuters) - Miner Anglo American AAL.L is identifying opportunities to secure off-take lithium materials amid increasing demand for battery metals, a company executive said. "We don't have a lithium mine and we don't trade it, but we are on the lookout for lithium," said Paul Ward, head of marketing for base metals at Anglo American. Anglo American's customers are asking for more types of metals including battery materials nickel and lithium, said Ward on the sidelines of the CRU World Copper Conference Asia in Shanghai this week.
|
By Mai Nguyen SHANGHAI, Nov 17 (Reuters) - Miner Anglo American AAL.L is identifying opportunities to secure off-take lithium materials amid increasing demand for battery metals, a company executive said. The company does not own lithium mines but produces copper, nickel and iron ore, other raw materials needed to manufacture batteries, electric cars (EVs) and renewable infrastructure that will help the world transition. Anglo American's customers are asking for more types of metals including battery materials nickel and lithium, said Ward on the sidelines of the CRU World Copper Conference Asia in Shanghai this week.
|
2102.0
|
2023-11-16 00:00:00 UTC
|
Sabre's (SABR) GDS to Provide LOT Polish Airlines' NDC Content
|
AAL
|
https://www.nasdaq.com/articles/sabres-sabr-gds-to-provide-lot-polish-airlines-ndc-content
|
nan
|
nan
|
Sabre Corporation SABR recently unveiled that the Poland flag air carrier LOT Polish Airlines’ New Distribution Capability (“NDC”) content is now integrated into Sabre’s Global Distribution System (“GDS”).
SABR’s GDS is an NDC-enabled, consistent end-to-end workflow solution that works like a marketplace connecting travel suppliers with buyers. With this enhanced distribution agreement, Sabre-connected agencies, travel buyers and agents will be able to access LOT Polish’s NDC offers. The agencies will leverage SABR's Offer and Order APIs and solutions like Sabre Red 360 and Sabre GetThere.
LOT Polish has become the latest addition to a group of 16 airlines collaborating with Sabre to offer their NDC content in the market. This list of airlines includes Aeromexico, Scandinavian Airlines, Finnair, United Airlines UAL and American Airlines AAL. All these companies have partnered or renewed the partnership with Sabre in 2023.
Sabre Corporation Price and Consensus
Sabre Corporation price-consensus-chart | Sabre Corporation Quote
In March 2023, the company announced that Sabre-connected travel buyers, agencies and developer partners will be able to access American Airlines’ NDC content through Sabre Red 360, Sabre APIs and GetThere. The new partnership allowed travel buyers on Sabre’s GDS to access AAL’s offers, including Main Select and Flagship Business Plus fares.
In April 2023, United Airlines introduced its NDC offers on Sabre’s GDS. This enabled travel buyers to access enhanced options, including UAL's continuous pricing content, featuring the most competitive fares available through Sabre Red 360, Sabre APIs and GetThere.
Sabre’s last few quarters’ financial results reflect that the company is moving toward stabilization after the severe impacts of the pandemic-led global economic crisis. The company recorded revenues of $748 million for the third quarter of 2023, which is significantly higher than the revenues of $663.4 million posted in the year-ago quarter.
This year-over-year surge in the top line reflects a significant improvement in global air, hotel and other travel bookings. Additionally, the company's Travel Solutions division benefited from favorable rates as international and corporate bookings continued to improve.
Zacks Rank and a Stock to Consider
American Airlines and United Airlines each carry a Zacks Rank #3 (Hold) at present, while Sabre has a Zacks Rank #4 (Sell). While shares of UAL have risen 5.7% year to date, AAL and SABR stocks have plunged 2.3% and 39%, respectively.
A better-ranked stock from the broader technology sector is NVIDIA Corporation NVDA, which sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for NVDA’s third-quarter fiscal 2024 earnings has been revised by 2 cents northward to $3.34 per share in the past 60 days. For fiscal 2024, earnings estimates have increased by 8 cents to $10.82 in the past seven days.
NVIDIA's earnings beat the Zacks Consensus Estimate in three of the trailing four quarters while missing on one occasion, the average surprise being 9.8%. Shares of NVDA have surged 233% year to date.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.0% per year. So be sure to give these hand-picked 7 your immediate attention.
See them now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
United Airlines Holdings Inc (UAL) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
American Airlines Group Inc. (AAL) : Free Stock Analysis Report
Sabre Corporation (SABR) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
The new partnership allowed travel buyers on Sabre’s GDS to access AAL’s offers, including Main Select and Flagship Business Plus fares. This list of airlines includes Aeromexico, Scandinavian Airlines, Finnair, United Airlines UAL and American Airlines AAL. While shares of UAL have risen 5.7% year to date, AAL and SABR stocks have plunged 2.3% and 39%, respectively.
|
Click to get this free report United Airlines Holdings Inc (UAL) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Sabre Corporation (SABR) : Free Stock Analysis Report To read this article on Zacks.com click here. This list of airlines includes Aeromexico, Scandinavian Airlines, Finnair, United Airlines UAL and American Airlines AAL. The new partnership allowed travel buyers on Sabre’s GDS to access AAL’s offers, including Main Select and Flagship Business Plus fares.
|
Click to get this free report United Airlines Holdings Inc (UAL) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Sabre Corporation (SABR) : Free Stock Analysis Report To read this article on Zacks.com click here. This list of airlines includes Aeromexico, Scandinavian Airlines, Finnair, United Airlines UAL and American Airlines AAL. The new partnership allowed travel buyers on Sabre’s GDS to access AAL’s offers, including Main Select and Flagship Business Plus fares.
|
The new partnership allowed travel buyers on Sabre’s GDS to access AAL’s offers, including Main Select and Flagship Business Plus fares. This list of airlines includes Aeromexico, Scandinavian Airlines, Finnair, United Airlines UAL and American Airlines AAL. While shares of UAL have risen 5.7% year to date, AAL and SABR stocks have plunged 2.3% and 39%, respectively.
|
2103.0
|
2023-11-16 00:00:00 UTC
|
Zacks Industry Outlook Highlights Delta Air Lines, United Airlines and American Airlines
|
AAL
|
https://www.nasdaq.com/articles/zacks-industry-outlook-highlights-delta-air-lines-united-airlines-and-american-airlines
|
nan
|
nan
|
For Immediate Release
Chicago, IL – November 16, 2023 – Today, Zacks Equity Research discusses Delta Air Lines DAL, United Airlines UAL and American Airlines AAL.
Industry: Airlines
Link: https://www.zacks.com/commentary/2184425/3-airline-stocks-to-watch-amid-industry-challenges
Stocks in the Zacks Transportation - Airline industry are being hurt by the increase in fuel costs. As if the recent spike in fuel costs was not enough, the northward movement of labor costs has further compounded the airline industry’s woes.
Despite the challenges, we believe that stocks like Delta Air Lines, United Airlines and American Airlines should be on an investor’s watchlist given the encouraging air travel demand trend.
About the Industry
The Zacks Airline industry houses players engaged in transporting passengers and cargo to various destinations globally. Most operators maintain a fleet of multiple mainline jets in addition to several regional planes. Operations are aided by their regional airline subsidiaries and third-party regional carriers. Additionally, industry players utilize their respective cargo divisions to offer a wide range of freight and mail services. The players invest substantially to upgrade technology.
The industry, apart from comprising legacy carriers, includes low-cost players. The well-being of companies in this group is linked to the health of the overall economy. For example, the aviation space was one of the worst-hit corners during the pandemic, with passenger revenues taking a beating. However, air travel demand is rosy now. The focus on boosting cargo revenues is a positive too.
Factors Relevant to the Industry's Fortunes
Rosy Air Traffic Scenario: It is a well-documented fact that air travel demand has bounced back strongly from the pandemic lows. The removal of COVID-related restrictions is aiding air travel, which is now strong on the international front as well. People are again resorting to air travel as they resume their normal activities.
The upbeat forecast by the Airlines for America or A4A for the upcoming Thanksgiving travel period (Nov 17-27) further highlights the encouraging scenario. Per A4A, air travel during the Thanksgiving holiday period this year is likely to touch an all-time high. Passenger volume is expected to be nearly 30 million over the 11-day period. The forecast implies that 2.7 million passengers are likely to fly per day, a 9% increase from 2022 actuals. Per the projection, the Sunday after Thanksgiving, Nov 26, is likely to be the busiest day of the 11-day holiday period. A record 3.2 million passengers are expected to take to the skies on that day.
High Fuel Costs: The northward movement of oil price does not bode well for the bottom-line growth of industry participants. This is because fuel expenses are a significant input cost for the aviation space. Notably, oil prices surged 28.5% in the July-September period due to the extension of production cuts by Saudi Arabia and Russia through the end of the current year.
Uptick in Labor Costs: The increase in expenses on the labor front represents another headwind for airlines. With U.S. airlines grappling with labor shortage in the post-COVID-19 high-demand scenario, the bargaining power of various labor groups has naturally increased. As a result, we have seen pay-hike deals being inked in the space. This is resulting in a spike in labor costs.
Zacks Industry Rank Signals Dull Prospects
The Zacks Airline industry is a 28-stock group within the broader Zacks Transportation sector. The industry currently carries a Zacks Industry Rank #199, which places it in the bottom 20% of 250 plus Zacks industries.
The group’s Zacks Industry Rank, basically the average of the Zacks Rank of all the member stocks, indicates murky near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperforms the bottom 50% by a factor of more than 2 to 1.
The industry’s positioning in the bottom 50% of the Zacks-ranked industries is a result of a negative earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts are gradually losing confidence in this group’s earnings growth potential. Evidently, the industry’s earnings estimate for 2023 has decreased 13.8% since February-end.
Before we present a few stocks that you may want to retain in your portfolio, let’s look at the industry’s recent stock-market performance and its valuation picture.
Industry Lags S&P 500 and Sector
Over the past year, the Zacks Transportation - Airline industry has declined 13.3% against the S&P 500 composite’s rise of 11%. The broader sector has declined 5.7% in the said time frame.
Valuation Picture
The price/sales (P/S) ratio is often used to value airline stocks. The industry currently has a forward 12-month P/S of 0.38X compared with the S&P 500’s 3.58X. It is also below the sector’s forward-12-month P/S of 1.5X.
Over the past five years, the industry has traded as high as 1.02X, as low as 0.33X and at the median of 0.61X.
3 Airline Stocks to Watch
All three stocks currently carry a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Delta, based in Atlanta, is being well-served by the uptick in air travel demand. Riding on the buoyant air traffic scenario, Delta expects approximately 6 million passengers to avail its flights in the Nov 18-29 timeframe. The forecast implies that nearly 50,000 passengers are likely to fly per day.
DAL surpassed the Zacks Consensus Estimate for earnings in three of the last four quarters, missing the mark in the other quarter. The average beat is 4.35%. DAL shares have gained 7.7% year to date.
United Airlines is seeing a steady recovery in domestic and international air travel demand. United Airlines expects the busiest-ever Thanksgiving travel period this year. The Sunday after Thanksgiving is expected to be the busiest in terms of air traffic. Management expects 5.9 million passengers to board its flights over the 11-day Thanksgiving travel period.
Riding on the buoyant air traffic scenario, UAL shares have gained 4.9% year to date. UAL surpassed the Zacks Consensus Estimate for earnings in each of the last four quarters. The average beat is 16.5%.
American Airlines too is benefiting from an improvement in air travel demand. Like UAL, American Airlines expects the busiest-ever Thanksgiving travel period. Management expects more than 7.8 million passengers to avail its flights in the Nov 16-Nov 28 timeframe.
The carrier's debt-reduction efforts are impressive as well. As of Sep 30, 2023, American Airlines reduced its total debt by approximately $10.9 billion from peak levels witnessed in mid-2021. AAL surpassed the Zacks Consensus Estimate for earnings in each of the last four quarters. The average beat is 23.8%.
Why Haven’t You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. Today you can access their live picks without cost or obligation.
See Stocks Free >>
Join us on Facebook: https://www.facebook.com/ZacksInvestmentResearch/
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
https://www.zacks.com
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.0% per year. So be sure to give these hand-picked 7 your immediate attention.
See them now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report
United Airlines Holdings Inc (UAL) : Free Stock Analysis Report
American Airlines Group Inc. (AAL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
For Immediate Release Chicago, IL – November 16, 2023 – Today, Zacks Equity Research discusses Delta Air Lines DAL, United Airlines UAL and American Airlines AAL. AAL surpassed the Zacks Consensus Estimate for earnings in each of the last four quarters. Click to get this free report Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report United Airlines Holdings Inc (UAL) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here.
|
For Immediate Release Chicago, IL – November 16, 2023 – Today, Zacks Equity Research discusses Delta Air Lines DAL, United Airlines UAL and American Airlines AAL. Click to get this free report Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report United Airlines Holdings Inc (UAL) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. AAL surpassed the Zacks Consensus Estimate for earnings in each of the last four quarters.
|
Click to get this free report Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report United Airlines Holdings Inc (UAL) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. For Immediate Release Chicago, IL – November 16, 2023 – Today, Zacks Equity Research discusses Delta Air Lines DAL, United Airlines UAL and American Airlines AAL. AAL surpassed the Zacks Consensus Estimate for earnings in each of the last four quarters.
|
For Immediate Release Chicago, IL – November 16, 2023 – Today, Zacks Equity Research discusses Delta Air Lines DAL, United Airlines UAL and American Airlines AAL. AAL surpassed the Zacks Consensus Estimate for earnings in each of the last four quarters. Click to get this free report Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report United Airlines Holdings Inc (UAL) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here.
|
2104.0
|
2023-11-16 00:00:00 UTC
|
Airline Stock Roundup: CPA's Q3 Earnings Beat, GOL's October Traffic & More
|
AAL
|
https://www.nasdaq.com/articles/airline-stock-roundup%3A-cpas-q3-earnings-beat-gols-october-traffic-more
|
nan
|
nan
|
In the past week, Latin American carrier Copa Holdings CPA reported better-than-expected third-quarter 2023 earnings per share. The results were aided by upbeat air travel demand and the company’s cost-reduction actions.
Another Latin American carrier, Gol Linhas GOL, was also in the news courtesy of its impressive traffic report for October. The overall numbers improved as international traffic came roaring back after the pandemic. An expansion-related update was also available from Allegiant Travel Company ALGT in the past week.
Given the upbeat air travel demand scenario, Airlines for America or A4A came up with a bullish forecast for the upcoming Thanksgiving travel period (Nov 17-27). Per A4A, air travel during the Thanksgiving holiday period this year is likely to touch an all-time high.
Recap of the Past Week’s Most Important Stories
1. Copa’s third-quarter 2023 earnings (excluding 33 cents from non-recurring items) of $4.39 per share surpassed the Zacks Consensus Estimate of $3.74 and rose more than 50% year over year. Revenues of $867.7 million, however, missed the Zacks Consensus Estimate of $879.3 million. Revenues improved 7.2% year over year on the back of higher passenger revenues.
Passenger revenues (contributed 96% to the top line) increased 7.6% from third-quarter 2022 actuals, owing to higher load factor (% of seats filled by passengers) and capacity. Cargo and mail revenues fell 11.2% to $23.4 million due to lower cargo volumes and yields. Other operating revenues came in at $10.9 million, up 24.5% year over year, on the back of revenues from non-air ConnectMiles partners.
For 2023, Copa Holdings expects its consolidated capacity to register 13% growth from 2022. Operating margin is expected to be 23%. The load factor is now expected to be around 87% (prior view: 86%).
Updates on the third-quarter earnings report of another Latin American carrier, Gol Linhas, are available in the previous week’s write-up.
2. In October, consolidated revenue passenger kilometers (a measure of air traffic) at Gol Linhas increased 2.6% on a year-over-year basis, while available seat kilometers (a measure of capacity) fell 1.2%. With traffic growth outpacing capacity expansion, the load factor improved to 84.5% from 81.4% in October 2022. The number of flight departures at GOL in October registered a 3.1% year-over-year increase. Consolidated passengers on board rose 8.6% year over year.
Currently, Gol Linhas carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
3. Per A4A, passenger volume is expected to be nearly 30 million over the 11-day Thanksgiving travel period. Riding on the buoyant air traffic scenario, Delta Air Lines DAL expects approximately 6 million passengers to avail its flights in the Nov 18-29 timeframe. The forecast implies that nearly 50,000 passengers are likely to fly per day. American Airlines AAL expects the busiest-ever Thanksgiving travel period this year.
4. In a bid to expand its network to meet the buoyant air travel demand scenario, Allegiant announced the introduction of 12 new nonstop routes to popular vacation destinations. The new flights, which take effect in spring 2024, will expand the airline's network options in 22 cities around the United States.
Price Performance
The following table shows the price movement of the major airline players over the past week and during the past six months.
Image Source: Zacks Investment Research
The table above shows that all airline stocks traded in the green over the past week. Consequently, the NYSE ARCA Airline Index rose 11.2% to $54.15 over the past week. Over the course of six months, the sector tracker decreased 10.1%.
What's Next in the Airline Space?
Stay tuned for the usual news updates in the space.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.0% per year. So be sure to give these hand-picked 7 your immediate attention.
See them now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report
Gol Linhas Aereas Inteligentes S.A. (GOL) : Free Stock Analysis Report
Copa Holdings, S.A. (CPA) : Free Stock Analysis Report
American Airlines Group Inc. (AAL) : Free Stock Analysis Report
Allegiant Travel Company (ALGT) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
American Airlines AAL expects the busiest-ever Thanksgiving travel period this year. Click to get this free report Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report Gol Linhas Aereas Inteligentes S.A. (GOL) : Free Stock Analysis Report Copa Holdings, S.A. (CPA) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Allegiant Travel Company (ALGT) : Free Stock Analysis Report To read this article on Zacks.com click here. In the past week, Latin American carrier Copa Holdings CPA reported better-than-expected third-quarter 2023 earnings per share.
|
Click to get this free report Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report Gol Linhas Aereas Inteligentes S.A. (GOL) : Free Stock Analysis Report Copa Holdings, S.A. (CPA) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Allegiant Travel Company (ALGT) : Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines AAL expects the busiest-ever Thanksgiving travel period this year. In the past week, Latin American carrier Copa Holdings CPA reported better-than-expected third-quarter 2023 earnings per share.
|
Click to get this free report Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report Gol Linhas Aereas Inteligentes S.A. (GOL) : Free Stock Analysis Report Copa Holdings, S.A. (CPA) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Allegiant Travel Company (ALGT) : Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines AAL expects the busiest-ever Thanksgiving travel period this year. Revenues improved 7.2% year over year on the back of higher passenger revenues.
|
American Airlines AAL expects the busiest-ever Thanksgiving travel period this year. Click to get this free report Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report Gol Linhas Aereas Inteligentes S.A. (GOL) : Free Stock Analysis Report Copa Holdings, S.A. (CPA) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Allegiant Travel Company (ALGT) : Free Stock Analysis Report To read this article on Zacks.com click here. An expansion-related update was also available from Allegiant Travel Company ALGT in the past week.
|
2105.0
|
2023-11-15 00:00:00 UTC
|
AAL Factor-Based Stock Analysis
|
AAL
|
https://www.nasdaq.com/articles/aal-factor-based-stock-analysis-1
|
nan
|
nan
|
Below is Validea's guru fundamental report for AMERICAN AIRLINES GROUP INC (AAL). Of the 22 guru strategies we follow, AAL rates highest using our Acquirer's Multiple Investor model based on the published strategy of Tobias Carlisle. This deep value model looks for inexpensive stocks that could be potential takeover targets.
AMERICAN AIRLINES GROUP INC (AAL) is a mid-cap value stock in the Airline industry. The rating using this strategy is 89% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
SECTOR: PASS
QUALITY: PASS
ACQUIRER'S MULTIPLE FAIL
Detailed Analysis of AMERICAN AIRLINES GROUP INC
AAL Guru Analysis
AAL Fundamental Analysis
More Information on Tobias Carlisle
Tobias Carlisle Portfolio
About Tobias Carlisle: Tobias Carlisle is a widely recognized expert on deep value investing. He is the author of "The Acquirer's Multiple: How the Billionaire Contrarians of Deep Value Beat the Market" and the founder of Acquirer's Funds. He is also the author of "Deep Value: Why Activists Investors and Other Contrarians Battle for Control of Losing Corporations" and co-author of Quantitative Value: "A Practitioner's Guide to Automating Intelligent Investment and Eliminating Behavioral Errors" Tobias is originally from Australia, where he worked an an analyst at an activist hedge fund and was a lawyer specializing in mergers and acquisitions.
Additional Research Links
Top Large-Cap Growth Stocks
Factor-Based Stock Portfolios
Dividend Aristocrats 2023
High Insider Ownership Stocks
Top S&P 500 Stocks
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Below is Validea's guru fundamental report for AMERICAN AIRLINES GROUP INC (AAL). Of the 22 guru strategies we follow, AAL rates highest using our Acquirer's Multiple Investor model based on the published strategy of Tobias Carlisle. AMERICAN AIRLINES GROUP INC (AAL) is a mid-cap value stock in the Airline industry.
|
Below is Validea's guru fundamental report for AMERICAN AIRLINES GROUP INC (AAL). Of the 22 guru strategies we follow, AAL rates highest using our Acquirer's Multiple Investor model based on the published strategy of Tobias Carlisle. Detailed Analysis of AMERICAN AIRLINES GROUP INC AAL Guru Analysis AAL Fundamental Analysis More Information on Tobias Carlisle Tobias Carlisle Portfolio About Tobias Carlisle: Tobias Carlisle is a widely recognized expert on deep value investing.
|
Of the 22 guru strategies we follow, AAL rates highest using our Acquirer's Multiple Investor model based on the published strategy of Tobias Carlisle. Detailed Analysis of AMERICAN AIRLINES GROUP INC AAL Guru Analysis AAL Fundamental Analysis More Information on Tobias Carlisle Tobias Carlisle Portfolio About Tobias Carlisle: Tobias Carlisle is a widely recognized expert on deep value investing. Below is Validea's guru fundamental report for AMERICAN AIRLINES GROUP INC (AAL).
|
Below is Validea's guru fundamental report for AMERICAN AIRLINES GROUP INC (AAL). Of the 22 guru strategies we follow, AAL rates highest using our Acquirer's Multiple Investor model based on the published strategy of Tobias Carlisle. Detailed Analysis of AMERICAN AIRLINES GROUP INC AAL Guru Analysis AAL Fundamental Analysis More Information on Tobias Carlisle Tobias Carlisle Portfolio About Tobias Carlisle: Tobias Carlisle is a widely recognized expert on deep value investing.
|
2106.0
|
2023-11-15 00:00:00 UTC
|
3 Airline Stocks to Watch Amid Industry Challenges
|
AAL
|
https://www.nasdaq.com/articles/3-airline-stocks-to-watch-amid-industry-challenges
|
nan
|
nan
|
Stocks in the Zacks Transportation - Airline industry are being hurt by the increase in fuel costs. As if the recent spike in fuel costs was not enough, the northward movement of labor costs has further compounded the airline industry’s woes.
Despite the challenges, we believe that stocks like Delta Air Lines DAL, United Airlines UAL and American Airlines AAL should be on an investor’s watchlist given the encouraging air travel demand trend.
About the Industry
The Zacks Airline industry houses players engaged in transporting passengers and cargo to various destinations globally. Most operators maintain a fleet of multiple mainline jets in addition to several regional planes. Operations are aided by their regional airline subsidiaries and third-party regional carriers. Additionally, industry players utilize their respective cargo divisions to offer a wide range of freight and mail services. The players invest substantially to upgrade technology. The industry, apart from comprising legacy carriers, includes low-cost players. The well-being of companies in this group is linked to the health of the overall economy. For example, the aviation space was one of the worst-hit corners during the pandemic, with passenger revenues taking a beating. However, air travel demand is rosy now. The focus on boosting cargo revenues is a positive too.
Factors Relevant to the Industry's Fortunes
Rosy Air Traffic Scenario: It is a well-documented fact that air travel demand has bounced back strongly from the pandemic lows. The removal of COVID-related restrictions is aiding air travel, which is now strong on the international front as well. People are again resorting to air travel as they resume their normal activities.
The upbeat forecast by the Airlines for America or A4A for the upcoming Thanksgiving travel period (Nov 17-27) further highlights the encouraging scenario. Per A4A, air travel during the Thanksgiving holiday period this year is likely to touch an all-time high. Passenger volume is expected to be nearly 30 million over the 11-day period. The forecast implies that 2.7 million passengers are likely to fly per day, a 9% increase from 2022 actuals. Per the projection, the Sunday after Thanksgiving, Nov 26, is likely to be the busiest day of the 11-day holiday period. A record 3.2 million passengers are expected to take to the skies on that day.
High Fuel Costs: The northward movement of oil price does not bode well for the bottom-line growth of industry participants. This is because fuel expenses are a significant input cost for the aviation space. Notably, oil price surged 28.5% in the July-September period due to the extension of production cut by Saudi Arabia and Russia through the end of the current year.
Uptick in Labor Costs: The increase in expenses on the labor front represents another headwind for airlines. With U.S. airlines grappling with labor shortage in the post-COVID-19 high-demand scenario, the bargaining power of various labor groups has naturally increased. As a result, we have seen pay-hike deals being inked in the space. This is resulting in a spike in labor costs.
Zacks Industry Rank Signals Dull Prospects
The Zacks Airline industry is a 28-stock group within the broader Zacks Transportation sector. The industry currently carries a Zacks Industry Rank #199, which places it in the bottom 20% of 250 plus Zacks industries.
The group’s Zacks Industry Rank, basically the average of the Zacks Rank of all the member stocks, indicates murky near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperforms the bottom 50% by a factor of more than 2 to 1.
The industry’s positioning in the bottom 50% of the Zacks-ranked industries is a result of a negative earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts are gradually losing confidence in this group’s earnings growth potential. Evidently, the industry’s earnings estimate for 2023 has decreased 13.8% since February-end.
Before we present a few stocks that you may want to retain in your portfolio, let’s look at the industry’s recent stock-market performance and its valuation picture.
Industry Lags S&P 500 and Sector
Over the past year, the Zacks Transportation - Airline industry has declined 13.3% against the S&P 500 composite’s rise of 11%. The broader sector has declined 5.7% in the said time frame.
One-Year Price Performance
Valuation Picture
The price/sales (P/S) ratio is often used to value airline stocks. The industry currently has a forward 12-month P/S of 0.38X compared with the S&P 500’s 3.58X. It is also below the sector’s forward-12-month P/S of 1.5X.
Over the past five years, the industry has traded as high as 1.02X, as low as 0.33X and at the median of 0.61X.
Forward 12-Month Price-to-Sales Ratio (Past Five Years)
3 Airline Stocks to Watch
All three stocks currently carry a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Delta, based in Atlanta, is being well-served by the uptick in air travel demand. Riding on the buoyant air traffic scenario, Delta expects approximately 6 million passengers to avail its flights in the Nov 18-29 timeframe. The forecast implies that nearly 50,000 passengers are likely to fly per day.
DAL surpassed the Zacks Consensus Estimate for earnings in three of the last four quarters, missing the mark in the other quarter. The average beat is 4.35%. DAL shares have gained 7.7% year to date.
Price and Consensus: DAL
United Airlines is seeing a steady recovery in domestic and international air travel demand. United Airlines expects the busiest-ever Thanksgiving travel period this year. The Sunday after Thanksgiving is expected to be the busiest in terms of air traffic. Management expects 5.9 million passengers to board its flights over the 11-day Thanksgiving travel period.
Riding on the buoyant air traffic scenario, UAL shares have gained 4.9% year to date. UAL surpassed the Zacks Consensus Estimate for earnings in each of the last four quarters. The average beat is 16.5%.
Price and Consensus: UAL
American Airlines too is benefiting from an improvement in air travel demand. Like UAL, American Airlines expects the busiest-ever Thanksgiving travel period. Management expects more than 7.8 million passengers to avail its flights in the Nov 16-Nov 28 timeframe.
The carrier's debt-reduction efforts are impressive as well. As of Sep 30, 2023, American Airlines reduced its total debt by approximately $10.9 billion from peak levels witnessed in mid-2021. AAL surpassed the Zacks Consensus Estimate for earnings in each of the last four quarters. The average beat is 23.8%.
Price and Consensus: AAL
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2023. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report
United Airlines Holdings Inc (UAL) : Free Stock Analysis Report
American Airlines Group Inc. (AAL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Despite the challenges, we believe that stocks like Delta Air Lines DAL, United Airlines UAL and American Airlines AAL should be on an investor’s watchlist given the encouraging air travel demand trend. AAL surpassed the Zacks Consensus Estimate for earnings in each of the last four quarters. Price and Consensus: AAL
|
Despite the challenges, we believe that stocks like Delta Air Lines DAL, United Airlines UAL and American Airlines AAL should be on an investor’s watchlist given the encouraging air travel demand trend. Click to get this free report Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report United Airlines Holdings Inc (UAL) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. AAL surpassed the Zacks Consensus Estimate for earnings in each of the last four quarters.
|
Click to get this free report Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report United Airlines Holdings Inc (UAL) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. Despite the challenges, we believe that stocks like Delta Air Lines DAL, United Airlines UAL and American Airlines AAL should be on an investor’s watchlist given the encouraging air travel demand trend. AAL surpassed the Zacks Consensus Estimate for earnings in each of the last four quarters.
|
Despite the challenges, we believe that stocks like Delta Air Lines DAL, United Airlines UAL and American Airlines AAL should be on an investor’s watchlist given the encouraging air travel demand trend. AAL surpassed the Zacks Consensus Estimate for earnings in each of the last four quarters. Price and Consensus: AAL
|
2107.0
|
2023-11-14 00:00:00 UTC
|
U.S. Airlines Set to Soar This Thanksgiving Travel Period
|
AAL
|
https://www.nasdaq.com/articles/u.s.-airlines-set-to-soar-this-thanksgiving-travel-period
|
nan
|
nan
|
It is a well-documented fact that air travel demand has bounced back strongly from the pandemic lows. Driven by buoyant passenger volumes, the upcoming Thanksgiving travel period (Nov 17-27) is expected to be a very busy one for U.S. airlines.
Upbeat traffic volumes during the Labor Day holiday weekend earlier this year further highlight the encouraging scenario. Therefore, we believe that investors interested in the industry would do well to keep U.S. airline stocks like United Airlines UAL, American Airlines AAL and Delta Air Lines DAL on their radar.
The abovementioned stocks currently carry a Zacks Rank #3 (Hold) each. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here
Following the removal of coronavirus-induced restrictions, pent-up demand has been driving traffic for the airlines. Despite inflationary pressures and the resultant high interest rates, there is a wave of optimism in the United States surrounding air travel demand.
To meet the anticipated demand swell, U.S. airlines are boosting capacity (airlines are offering 253,000 more seats per day during the period) despite challenges like high labor and fuel costs. These headwinds are unlikely to have a significant adverse impact on passenger volumes in the Thanksgiving period, as people are eager to travel after being confined to their homes during the pandemic.
Per A4A, air travel during the Thanksgiving holiday period this year is likely to touch an all-time high. Passenger volume is expected to be nearly 30 million over the 11-day period. The forecast implies that 2.7 million passengers are likely to fly per day, a 9% increase from 2022 actuals. Per the projection, the Sunday after Thanksgiving, Nov 26, is likely to be the busiest day of the 11-day holiday period. A record 3.2 million passengers are expected to take to the skies on that day.
Moreover, the prevalence of remote working is expected to ease the congestion with respect to air travel this year as it helps many people travel on days when the rush is likely to be relatively less, and air tickets are comparatively cheaper.
Delta expects approximately 6 million passengers to avail its flights in the Nov 18-29 timeframe. The forecast implies that nearly 50,000 passengers are likely to fly per day. Management believes that Delta’s peak travel days are expected to be the Friday before Thanksgiving (and the Sunday following the holiday). American Airlines expects the busiest-ever Thanksgiving travel period. Management expects that more than 7.8 million passengers will avail of its flights in the Nov 16-Nov 28 timeframe.
Like AAL, United Airlines expects the busiest-ever Thanksgiving travel period. The Sunday after Thanksgiving is expected to be the busiest in terms of air traffic. Management expects 5.9 million passengers to board its flights over the 11-day Thanksgiving travel period.
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
See This Stock Now for Free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report
United Airlines Holdings Inc (UAL) : Free Stock Analysis Report
American Airlines Group Inc. (AAL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Therefore, we believe that investors interested in the industry would do well to keep U.S. airline stocks like United Airlines UAL, American Airlines AAL and Delta Air Lines DAL on their radar. Like AAL, United Airlines expects the busiest-ever Thanksgiving travel period. Click to get this free report Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report United Airlines Holdings Inc (UAL) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here.
|
Therefore, we believe that investors interested in the industry would do well to keep U.S. airline stocks like United Airlines UAL, American Airlines AAL and Delta Air Lines DAL on their radar. Like AAL, United Airlines expects the busiest-ever Thanksgiving travel period. Click to get this free report Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report United Airlines Holdings Inc (UAL) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here.
|
Therefore, we believe that investors interested in the industry would do well to keep U.S. airline stocks like United Airlines UAL, American Airlines AAL and Delta Air Lines DAL on their radar. Click to get this free report Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report United Airlines Holdings Inc (UAL) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. Like AAL, United Airlines expects the busiest-ever Thanksgiving travel period.
|
Like AAL, United Airlines expects the busiest-ever Thanksgiving travel period. Therefore, we believe that investors interested in the industry would do well to keep U.S. airline stocks like United Airlines UAL, American Airlines AAL and Delta Air Lines DAL on their radar. Click to get this free report Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report United Airlines Holdings Inc (UAL) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here.
|
2108.0
|
2023-11-13 00:00:00 UTC
|
Airlines predict record Thanksgiving US holiday travel
|
AAL
|
https://www.nasdaq.com/articles/airlines-predict-record-thanksgiving-us-holiday-travel-0
|
nan
|
nan
|
By David Shepardson
WASHINGTON, Nov 13 (Reuters) - Major U.S. airlines and the Transportation Security Administration (TSA) said Monday they expect record air travel over the Thanksgiving holiday air travel period.
Airlines for America, an industry group representing American Airlines AAL.O United Airlines UAL.O, Delta Air Lines DAL.N and others, forecasts 29.9 million passengers between Nov. 17-27, an all-time high and up 9% over the 27.5 million in the same period last year -- and up 1.7 million passengers over pre-COVID record levels.
TSA said in the 12-day period ending Nov. 28 it forecasts screening 30 million U.S. air passengers and expects to set the busiest ever one-day screening during the holiday period.
Airlines for America says Nov. 26 will be a record-setting air travel day with 3.2 million passengers. U.S. airlines are offering 253,000 additional seats per day on average over 2022.
The record travel comes despite airline flight cuts to New York airports because of air traffic controller staffing.
The Federal Aviation Administration in September, citing air traffic controller staffing issues, extended cuts to minimum flight requirements at congested New York City-area airports through October 2024.
JetBlue Airways JBLU.O on Oct. 25 told Congress it was ending service between Burlington, Vermont and New York-JFK Airport saying "the primary driver is FAA's ongoing air traffic control staffing challenges."
Under minimum flight requirements, airlines can lose their takeoff and landing slots at congested airports if they do not use them at least 80% of the time. The waiver allows airlines to not fly some flights and still retain slots.
A government watchdog said in June critical ATC facilities face significant staffing challenges, posing risks to air traffic operations.
In the summer of 2022, there were 41,498 flights from New York airports in which ATC staffing was a contributing factor in delays. New York Terminal Radar Approach Control staffing was at just 54%, the report said.
(Reporting by David Shepardson; Editing by Alistair Bell)
((David.Shepardson@thomsonreuters.com; 2028988324;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Airlines for America, an industry group representing American Airlines AAL.O United Airlines UAL.O, Delta Air Lines DAL.N and others, forecasts 29.9 million passengers between Nov. 17-27, an all-time high and up 9% over the 27.5 million in the same period last year -- and up 1.7 million passengers over pre-COVID record levels. The Federal Aviation Administration in September, citing air traffic controller staffing issues, extended cuts to minimum flight requirements at congested New York City-area airports through October 2024. JetBlue Airways JBLU.O on Oct. 25 told Congress it was ending service between Burlington, Vermont and New York-JFK Airport saying "the primary driver is FAA's ongoing air traffic control staffing challenges."
|
Airlines for America, an industry group representing American Airlines AAL.O United Airlines UAL.O, Delta Air Lines DAL.N and others, forecasts 29.9 million passengers between Nov. 17-27, an all-time high and up 9% over the 27.5 million in the same period last year -- and up 1.7 million passengers over pre-COVID record levels. By David Shepardson WASHINGTON, Nov 13 (Reuters) - Major U.S. airlines and the Transportation Security Administration (TSA) said Monday they expect record air travel over the Thanksgiving holiday air travel period. The record travel comes despite airline flight cuts to New York airports because of air traffic controller staffing.
|
Airlines for America, an industry group representing American Airlines AAL.O United Airlines UAL.O, Delta Air Lines DAL.N and others, forecasts 29.9 million passengers between Nov. 17-27, an all-time high and up 9% over the 27.5 million in the same period last year -- and up 1.7 million passengers over pre-COVID record levels. By David Shepardson WASHINGTON, Nov 13 (Reuters) - Major U.S. airlines and the Transportation Security Administration (TSA) said Monday they expect record air travel over the Thanksgiving holiday air travel period. The record travel comes despite airline flight cuts to New York airports because of air traffic controller staffing.
|
Airlines for America, an industry group representing American Airlines AAL.O United Airlines UAL.O, Delta Air Lines DAL.N and others, forecasts 29.9 million passengers between Nov. 17-27, an all-time high and up 9% over the 27.5 million in the same period last year -- and up 1.7 million passengers over pre-COVID record levels. Airlines for America says Nov. 26 will be a record-setting air travel day with 3.2 million passengers. The record travel comes despite airline flight cuts to New York airports because of air traffic controller staffing.
|
2109.0
|
2023-11-13 00:00:00 UTC
|
Airlines predict record Thanksgiving US holiday travel
|
AAL
|
https://www.nasdaq.com/articles/airlines-predict-record-thanksgiving-us-holiday-travel
|
nan
|
nan
|
WASHINGTON, Nov 13 (Reuters) - Major U.S. airlines and the Transportation Security Administration (TSA) said Monday they expect record air travel over the Thanksgiving holiday air travel period.
Airlines for America, an industry group representing American Airlines AAL.O United Airlines UAL.O, Delta Air Lines DAL.N and others, forecasts 29.9 million passengers between Nov. 17-27, an all-time high and up over the 27.5 million in the same period last year.
TSA said in the 12-day period ending Nov. 28 it forecasts screening 30 million U.S. air passengers and expects to set the busiest ever one-day screening during the holiday period.
(Reporting by David Shepardson)
((David.Shepardson@thomsonreuters.com; 2028988324;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Airlines for America, an industry group representing American Airlines AAL.O United Airlines UAL.O, Delta Air Lines DAL.N and others, forecasts 29.9 million passengers between Nov. 17-27, an all-time high and up over the 27.5 million in the same period last year. WASHINGTON, Nov 13 (Reuters) - Major U.S. airlines and the Transportation Security Administration (TSA) said Monday they expect record air travel over the Thanksgiving holiday air travel period. TSA said in the 12-day period ending Nov. 28 it forecasts screening 30 million U.S. air passengers and expects to set the busiest ever one-day screening during the holiday period.
|
Airlines for America, an industry group representing American Airlines AAL.O United Airlines UAL.O, Delta Air Lines DAL.N and others, forecasts 29.9 million passengers between Nov. 17-27, an all-time high and up over the 27.5 million in the same period last year. WASHINGTON, Nov 13 (Reuters) - Major U.S. airlines and the Transportation Security Administration (TSA) said Monday they expect record air travel over the Thanksgiving holiday air travel period. TSA said in the 12-day period ending Nov. 28 it forecasts screening 30 million U.S. air passengers and expects to set the busiest ever one-day screening during the holiday period.
|
Airlines for America, an industry group representing American Airlines AAL.O United Airlines UAL.O, Delta Air Lines DAL.N and others, forecasts 29.9 million passengers between Nov. 17-27, an all-time high and up over the 27.5 million in the same period last year. WASHINGTON, Nov 13 (Reuters) - Major U.S. airlines and the Transportation Security Administration (TSA) said Monday they expect record air travel over the Thanksgiving holiday air travel period. (Reporting by David Shepardson) ((David.Shepardson@thomsonreuters.com; 2028988324;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Airlines for America, an industry group representing American Airlines AAL.O United Airlines UAL.O, Delta Air Lines DAL.N and others, forecasts 29.9 million passengers between Nov. 17-27, an all-time high and up over the 27.5 million in the same period last year. WASHINGTON, Nov 13 (Reuters) - Major U.S. airlines and the Transportation Security Administration (TSA) said Monday they expect record air travel over the Thanksgiving holiday air travel period. TSA said in the 12-day period ending Nov. 28 it forecasts screening 30 million U.S. air passengers and expects to set the busiest ever one-day screening during the holiday period.
|
2110.0
|
2023-11-13 00:00:00 UTC
|
FOCUS-North American airlines bet on Asia to drive profit
|
AAL
|
https://www.nasdaq.com/articles/focus-north-american-airlines-bet-on-asia-to-drive-profit
|
nan
|
nan
|
By Allison Lampert and Rajesh Kumar Singh
MONTREAL/CHICAGO, Nov 13 (Reuters) - The return of North American flights to Asia-Pacific is accelerating heading in to 2024, as carriers bet on the region as the next source of high-margin revenue at a time of soaring costs.
A rebound in Asia is especially important for airlines where long-haul travel makes up a bigger mix of revenue. Carriers tapped pent-up demand last summer with sky-high fares on flights to Europe, but a return of those prices may not be in the cards next year as capacity grows, some analysts said.
Business travel, a cash cow for airlines, is also rebounding in Asia. Travel spending in Asia Pacific is set to grow 41% this year to $567 billion, and rise to $800 billion by 2027, according to data from the Global Business Travel Association.
Air Canada's AC.TO estimated traffic to Asia would be "closer to 80-something percent" of 2019 levels next year, the carrier's vice president of network planning told Reuters. The planned capacity, which has not been previously reported, is a strong rebound from 2022, when the carrier's Asia-Pacific traffic was 33% of 2019 levels.
While United Airlines UAL.O, American Airlines AAL.O and Delta Air Lines DAL.N are offering fewer seats to Asia Pacific in the current quarter compared with 2019, the numbers are up 75% on an annual basis, according to aviation analytics company Cirium.
In the first three months of 2024, the numbers will be up about 79% year-on-year. In contrast, seats on the flights of the three U.S. carriers to Europe will grow an annual 6%.
Travel to Asia is also a source of high-margin revenue at a time when soaring labor and fuel costs are pressuring profit and domestic fares are declining.
"The market here in the United States is more mature," United's chief commercial officer, Andrew Nocella, said at a conference earlier this month. "The growth rates of 7% or 8% or 9% for the industry are just not going to be possible, but growing overseas, we think there's just a lot more opportunity."
SUPPLY-DEMAND MISMATCH
Asia-Pacific has lagged behind the U.S. and Europe in global travel demand recovery after the pandemic. While passenger traffic in the region has surged since the reopening of borders, international airline capacity remains below 2019 levels.
The supply-demand mismatch is driving up profit margins for carriers. Asia-Pacific was the second-best market for passenger earnings after transatlantic for both United and Delta in the third quarter.
Delta is shifting capacity to international leisure destinations as domestic flights grow more modestly. The Atlanta-based carrier will increase capacity to Asia-Pacific by as much as 50% in the December quarter and expects the new flying to be "profit-accretive."
Rival United also plans to ramp up capacity in Asia Pacific at the cost of domestic growth, as it bets on flights like U.S. to Manila, Philippines, and San Francisco to New Zealand to deliver the "strongest short-term results."
Overall, Chicago-based United has almost doubled the number of seats on flights to Asia in the current quarter from a year ago, according to Cirium.
Across the border, Air Canada said the increase in Asia Pacific capacity would more than double its overall system growth.
Demand for increasing flights to Asia out of Air Canada's Vancouver hub is expected to come partly from growing Asian immigration to Canada, along with U.S. passengers, Mark Galardo, vice president for network planning, said in an interview.
Canada's largest carrier has a strategy of flying Americans from U.S. cities that connect through its Canadian hubs toward overseas destinations.
About 80% of that traffic now goes to Europe, compared with 20% to Asia, but it would shift as Asian travel grows, Galardo said.
"Our forecast is that ... it would shift within a range of 5 to 10 percentage points," said Galardo, adding it was too early to give a specific number for next year.
However, closed Russian airspace as well as depressed Chinese travel to North America remain hurdles.
The need to avoid Russian airspace due to the war with Ukraine has made it tougher for North American carriers to fly to destinations like Hong Kong from East Coast hubs Newark, New Jersey; and Atlanta and Toronto.
Similarly, Chinese tourists are still not back in full force. In 2019, 2.8 million tourists from China came to the U.S., but research group Tourism Economics expects a mere 991,000 to arrive this year.
Uneven recovery in Chinese travel demand is an unknown for the carriers, but tight supply should help profit, Raymond James analyst Savanthi Syth said.
"I feel like Asia-Pacific is six-to-12 months behind what you've seen on the transatlantic – China being the wild card in all this," she said.
(Reporting by Allison Lampert in Montreal and Rajesh Kumar Singh in Chicago Editing by Ben Klayman and Matthew Lewis)
((Allison.Lampert@thomsonreuters.com; 514-796-4212; Reuters Messaging: allison.lampert.reuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
While United Airlines UAL.O, American Airlines AAL.O and Delta Air Lines DAL.N are offering fewer seats to Asia Pacific in the current quarter compared with 2019, the numbers are up 75% on an annual basis, according to aviation analytics company Cirium. By Allison Lampert and Rajesh Kumar Singh MONTREAL/CHICAGO, Nov 13 (Reuters) - The return of North American flights to Asia-Pacific is accelerating heading in to 2024, as carriers bet on the region as the next source of high-margin revenue at a time of soaring costs. Rival United also plans to ramp up capacity in Asia Pacific at the cost of domestic growth, as it bets on flights like U.S. to Manila, Philippines, and San Francisco to New Zealand to deliver the "strongest short-term results."
|
While United Airlines UAL.O, American Airlines AAL.O and Delta Air Lines DAL.N are offering fewer seats to Asia Pacific in the current quarter compared with 2019, the numbers are up 75% on an annual basis, according to aviation analytics company Cirium. By Allison Lampert and Rajesh Kumar Singh MONTREAL/CHICAGO, Nov 13 (Reuters) - The return of North American flights to Asia-Pacific is accelerating heading in to 2024, as carriers bet on the region as the next source of high-margin revenue at a time of soaring costs. Air Canada's AC.TO estimated traffic to Asia would be "closer to 80-something percent" of 2019 levels next year, the carrier's vice president of network planning told Reuters.
|
While United Airlines UAL.O, American Airlines AAL.O and Delta Air Lines DAL.N are offering fewer seats to Asia Pacific in the current quarter compared with 2019, the numbers are up 75% on an annual basis, according to aviation analytics company Cirium. Travel spending in Asia Pacific is set to grow 41% this year to $567 billion, and rise to $800 billion by 2027, according to data from the Global Business Travel Association. Demand for increasing flights to Asia out of Air Canada's Vancouver hub is expected to come partly from growing Asian immigration to Canada, along with U.S. passengers, Mark Galardo, vice president for network planning, said in an interview.
|
While United Airlines UAL.O, American Airlines AAL.O and Delta Air Lines DAL.N are offering fewer seats to Asia Pacific in the current quarter compared with 2019, the numbers are up 75% on an annual basis, according to aviation analytics company Cirium. Carriers tapped pent-up demand last summer with sky-high fares on flights to Europe, but a return of those prices may not be in the cards next year as capacity grows, some analysts said. Across the border, Air Canada said the increase in Asia Pacific capacity would more than double its overall system growth.
|
2111.0
|
2023-11-10 00:00:00 UTC
|
Peru's copper production up 2.5% in September
|
AAL
|
https://www.nasdaq.com/articles/perus-copper-production-up-2.5-in-september-0
|
nan
|
nan
|
Adds reason for jump in output, background on copper production
LIMA, Nov 10 (Reuters) - Copper production in Peru rose 2.5% year-on-year in September, the Andean country's energy and mines ministry said on Friday, as the world's second-largest copper producing nationhit a monthly output of 235,178 metric tons.
The increase was driven by higher output from the Quellaveco mine, controlled by Anglo American AAL.L, which came online last year, and the Las Bambas mine controlled by Chinese firm MMG 1208.HK, the ministry statement said.
Copper is a major input for industrial activity worldwide, with demand for it in recent years seeing an extended upswing.
Between January and September, Peru's output of the coveted red metal rose 16% compared to the previous year, reaching a total of two million tons.
Copper production was impacted early in the year due to social unrest causing work stoppages at some mines.
The head of Peru's mining guild said 2023 output is expected to reach from 2.6-2.7 million tons, and some 2.7-2.8 million tons next year.
The ministry said production of gold, zinc and iron also rose in September, while silver output fell.
(Reporting by Marco Aquino; Editing by Sarah Morland)
((Valentine.Hilaire@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
The increase was driven by higher output from the Quellaveco mine, controlled by Anglo American AAL.L, which came online last year, and the Las Bambas mine controlled by Chinese firm MMG 1208.HK, the ministry statement said. Copper is a major input for industrial activity worldwide, with demand for it in recent years seeing an extended upswing. Between January and September, Peru's output of the coveted red metal rose 16% compared to the previous year, reaching a total of two million tons.
|
The increase was driven by higher output from the Quellaveco mine, controlled by Anglo American AAL.L, which came online last year, and the Las Bambas mine controlled by Chinese firm MMG 1208.HK, the ministry statement said. Adds reason for jump in output, background on copper production LIMA, Nov 10 (Reuters) - Copper production in Peru rose 2.5% year-on-year in September, the Andean country's energy and mines ministry said on Friday, as the world's second-largest copper producing nationhit a monthly output of 235,178 metric tons. Between January and September, Peru's output of the coveted red metal rose 16% compared to the previous year, reaching a total of two million tons.
|
The increase was driven by higher output from the Quellaveco mine, controlled by Anglo American AAL.L, which came online last year, and the Las Bambas mine controlled by Chinese firm MMG 1208.HK, the ministry statement said. Adds reason for jump in output, background on copper production LIMA, Nov 10 (Reuters) - Copper production in Peru rose 2.5% year-on-year in September, the Andean country's energy and mines ministry said on Friday, as the world's second-largest copper producing nationhit a monthly output of 235,178 metric tons. The head of Peru's mining guild said 2023 output is expected to reach from 2.6-2.7 million tons, and some 2.7-2.8 million tons next year.
|
The increase was driven by higher output from the Quellaveco mine, controlled by Anglo American AAL.L, which came online last year, and the Las Bambas mine controlled by Chinese firm MMG 1208.HK, the ministry statement said. Adds reason for jump in output, background on copper production LIMA, Nov 10 (Reuters) - Copper production in Peru rose 2.5% year-on-year in September, the Andean country's energy and mines ministry said on Friday, as the world's second-largest copper producing nationhit a monthly output of 235,178 metric tons. Copper is a major input for industrial activity worldwide, with demand for it in recent years seeing an extended upswing.
|
2112.0
|
2023-11-10 00:00:00 UTC
|
Validea Detailed Fundamental Analysis - AAL
|
AAL
|
https://www.nasdaq.com/articles/validea-detailed-fundamental-analysis-aal-8
|
nan
|
nan
|
Below is Validea's guru fundamental report for AMERICAN AIRLINES GROUP INC (AAL). Of the 22 guru strategies we follow, AAL rates highest using our Acquirer's Multiple Investor model based on the published strategy of Tobias Carlisle. This deep value model looks for inexpensive stocks that could be potential takeover targets.
AMERICAN AIRLINES GROUP INC (AAL) is a mid-cap value stock in the Airline industry. The rating using this strategy is 84% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
SECTOR: PASS
QUALITY: PASS
ACQUIRER'S MULTIPLE FAIL
Detailed Analysis of AMERICAN AIRLINES GROUP INC
AAL Guru Analysis
AAL Fundamental Analysis
More Information on Tobias Carlisle
Tobias Carlisle Portfolio
About Tobias Carlisle: Tobias Carlisle is a widely recognized expert on deep value investing. He is the author of "The Acquirer's Multiple: How the Billionaire Contrarians of Deep Value Beat the Market" and the founder of Acquirer's Funds. He is also the author of "Deep Value: Why Activists Investors and Other Contrarians Battle for Control of Losing Corporations" and co-author of Quantitative Value: "A Practitioner's Guide to Automating Intelligent Investment and Eliminating Behavioral Errors" Tobias is originally from Australia, where he worked an an analyst at an activist hedge fund and was a lawyer specializing in mergers and acquisitions.
Additional Research Links
Top Large-Cap Growth Stocks
Factor-Based Stock Portfolios
Dividend Aristocrats 2023
High Insider Ownership Stocks
Top S&P 500 Stocks
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Below is Validea's guru fundamental report for AMERICAN AIRLINES GROUP INC (AAL). Of the 22 guru strategies we follow, AAL rates highest using our Acquirer's Multiple Investor model based on the published strategy of Tobias Carlisle. AMERICAN AIRLINES GROUP INC (AAL) is a mid-cap value stock in the Airline industry.
|
Below is Validea's guru fundamental report for AMERICAN AIRLINES GROUP INC (AAL). Of the 22 guru strategies we follow, AAL rates highest using our Acquirer's Multiple Investor model based on the published strategy of Tobias Carlisle. Detailed Analysis of AMERICAN AIRLINES GROUP INC AAL Guru Analysis AAL Fundamental Analysis More Information on Tobias Carlisle Tobias Carlisle Portfolio About Tobias Carlisle: Tobias Carlisle is a widely recognized expert on deep value investing.
|
Of the 22 guru strategies we follow, AAL rates highest using our Acquirer's Multiple Investor model based on the published strategy of Tobias Carlisle. Detailed Analysis of AMERICAN AIRLINES GROUP INC AAL Guru Analysis AAL Fundamental Analysis More Information on Tobias Carlisle Tobias Carlisle Portfolio About Tobias Carlisle: Tobias Carlisle is a widely recognized expert on deep value investing. Below is Validea's guru fundamental report for AMERICAN AIRLINES GROUP INC (AAL).
|
Below is Validea's guru fundamental report for AMERICAN AIRLINES GROUP INC (AAL). Of the 22 guru strategies we follow, AAL rates highest using our Acquirer's Multiple Investor model based on the published strategy of Tobias Carlisle. Detailed Analysis of AMERICAN AIRLINES GROUP INC AAL Guru Analysis AAL Fundamental Analysis More Information on Tobias Carlisle Tobias Carlisle Portfolio About Tobias Carlisle: Tobias Carlisle is a widely recognized expert on deep value investing.
|
2113.0
|
2023-11-10 00:00:00 UTC
|
Anglo American's costly fertiliser mine seeks more customers
|
AAL
|
https://www.nasdaq.com/articles/anglo-americans-costly-fertiliser-mine-seeks-more-customers
|
nan
|
nan
|
LONDON, Nov 10 (Reuters) - Anglo American AAL.L is seeking partners in the Middle East and Africa to do supply and distribution deals for fertiliser from its multi-billion-dollar mining project in northeast England, a senior executive said.
The Woodsmith mine, on which Anglo American announced a $1.7 billion writdeown in February, has the world's largest known deposit of polyhalite, a naturally-occurring mineral containing nutrients including potassium, calcium, magnesium and sulphur, which it is marketing as POLY4.
Until now the mineral has only been produced in small quantities and its market is not commercially proven at scale, but Anglo American says polyhalite has the potential to improve the crop yield by 3% to 5%.
Tom McCulley, CEO of Anglo's Crop Nutrients division, also predicted the rising global population, concern about climate change and the impact of extreme weather on arable land would boost demand.
"The limit of existing fertilisers is that they are CO2 intensive," he said.
"Farmers are looking for a product that is organic and sustainable. We are the caterer for that."
Anglo has signed supply and distribution agrements with five companies and is looking for more partners in the Middle East and Africa, McCulley told reporters.
Deals so far included global grains merchant Archer-Daniels-Midland Co ADM.N in North America, German agriculture group BayWa BYWGn.DE in Europe and the Indian Farm Forestry Development Cooperative (IFFCO), he said.
The miner is also part of a low carbon fertiliser programme run by Britain's biggest retailer Tesco TSCO.L, he added.
Speaking during a site visit to the mine in Britain's North York Moors National Park, he said analysts' estimates that the total cost of the mine of around $9 billion were not "too far off", but refused to give details.
Anglo American, whose market cap is $34.5 billion, bought Woodsmith for 405 million pounds ($497.42 million) in 2020 after previous owner Sirius Minerals struggled to raise funding.
It aims to produce around 5 million tonnes annually in the first three years from its 2027 estimated start and eventually to ramp up to full capacity of 13 million tonnes for the 40-year plus mine.
Sirius had aimed for output of 10 million tonnes a year in the initial phase.
The world's largest miner BHP Group BHP.AX has also entered the potash fertiliser market with its Jansen project in Canada, aiming to start production in late 2026.
($1 = 0.8142 pounds)
(Reporting by Clara Denina; editing by Barbara Lewis)
((Clara.Denina@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
LONDON, Nov 10 (Reuters) - Anglo American AAL.L is seeking partners in the Middle East and Africa to do supply and distribution deals for fertiliser from its multi-billion-dollar mining project in northeast England, a senior executive said. The Woodsmith mine, on which Anglo American announced a $1.7 billion writdeown in February, has the world's largest known deposit of polyhalite, a naturally-occurring mineral containing nutrients including potassium, calcium, magnesium and sulphur, which it is marketing as POLY4. Tom McCulley, CEO of Anglo's Crop Nutrients division, also predicted the rising global population, concern about climate change and the impact of extreme weather on arable land would boost demand.
|
LONDON, Nov 10 (Reuters) - Anglo American AAL.L is seeking partners in the Middle East and Africa to do supply and distribution deals for fertiliser from its multi-billion-dollar mining project in northeast England, a senior executive said. Anglo has signed supply and distribution agrements with five companies and is looking for more partners in the Middle East and Africa, McCulley told reporters. Anglo American, whose market cap is $34.5 billion, bought Woodsmith for 405 million pounds ($497.42 million) in 2020 after previous owner Sirius Minerals struggled to raise funding.
|
LONDON, Nov 10 (Reuters) - Anglo American AAL.L is seeking partners in the Middle East and Africa to do supply and distribution deals for fertiliser from its multi-billion-dollar mining project in northeast England, a senior executive said. The Woodsmith mine, on which Anglo American announced a $1.7 billion writdeown in February, has the world's largest known deposit of polyhalite, a naturally-occurring mineral containing nutrients including potassium, calcium, magnesium and sulphur, which it is marketing as POLY4. Anglo American, whose market cap is $34.5 billion, bought Woodsmith for 405 million pounds ($497.42 million) in 2020 after previous owner Sirius Minerals struggled to raise funding.
|
LONDON, Nov 10 (Reuters) - Anglo American AAL.L is seeking partners in the Middle East and Africa to do supply and distribution deals for fertiliser from its multi-billion-dollar mining project in northeast England, a senior executive said. The Woodsmith mine, on which Anglo American announced a $1.7 billion writdeown in February, has the world's largest known deposit of polyhalite, a naturally-occurring mineral containing nutrients including potassium, calcium, magnesium and sulphur, which it is marketing as POLY4. Anglo American, whose market cap is $34.5 billion, bought Woodsmith for 405 million pounds ($497.42 million) in 2020 after previous owner Sirius Minerals struggled to raise funding.
|
2114.0
|
2023-11-07 00:00:00 UTC
|
1 Stock Set to Fly on the Airline Supply Chain Crisis
|
AAL
|
https://www.nasdaq.com/articles/1-stock-set-to-fly-on-the-airline-supply-chain-crisis
|
nan
|
nan
|
There is little doubt that airlines all over the world struggled to cope when demand roared back after the pandemic. A shortage of new planes, caused by supply chain issues, led to airlines spending more on maintenance and repairs than ever before, as they were forced to keep their existing aircraft in the air for longer.
But the airlines’ problems have been a boon for the $110 billion industry that keeps the world’s aircraft in the skies. Let me explain…
Demand Soars for Airplane Maintenance
Historically, maintenance spending has accounted for 8% to 10% of an airline’s cost to keep flying. However, this year, the aerospace consultancy Aerodynamic Advisory estimates that the world’s airlines would spend more than $110 billion on maintenance, including labor and material, or about 14% of airlines’ total revenues. That was the highest percentage Aerodynamic Advisory had ever recorded.
And according to a recent research note from Jefferies, three of the major U.S. airlines - American Airlines (AAL), Delta Air Lines (DAL), and United Airlines (UAL) - spent a whopping $2.2 billion on maintenance in the third quarter, a 45% increase from the same period in 2019, before the pandemic. Trailing 12-month spend by these airlines was tracking 38% above 2019 levels.
The head of the Aerodynamic Advisory, Kevin Michaels, pointed out three contributing factors behind these soaring costs to the Financial Times.
First, airlines are investing in discretionary maintenance that had been deferred during the pandemic. Second, older aircraft - due for retirement currently - have to fly longer than expected, given the issues with new generations of engines, as well as supply chain constraints. Finally, general inflationary pressures, coupled with a lack of skilled labor, has pushed up the cost of labor and parts.
Michaels said, “this is the first time we’ve had a supply chain crisis that is really impacting the whole after-market in maintenance, repair and overhaul (MRO). It’s new territory.”
In addition, airlines historically have resisted buying spare parts from anyone but the original equipment manufacturers (OEMs). But that is changing rapidly.
All of this is music to the ears of the companies in the maintenance, repair, and overhaul (MRO) industry. Let’s take a closer look at one of them.
Heico: A Never-Seen-Before Environment
One such company is Heico (HEI). It is the largest independent producer and supplier of replacement parts for aircraft, and also produces niche subcomponents for defense products.
Its products and components are similar to those produced by the original equipment manufacturers, like General Electric (GE). In effect, Heico offers generic airplane parts that are sold about 30% to 40% below what the OEMs charge.
After its latest earnings report in late August, Chairman and CEO Laurans Mendelson said, “We are very pleased to report record quarterly consolidated net sales at both the Flight Support Group and the Electronic Technologies Group. These results reflect 12% consolidated organic growth in our net sales principally arising from a continued strong demand for our commercial aerospace products and services.”
The company reported record sales of $722.9 million in the third quarter ended July 31, while operating income jumped 16% to $149.4 million. About 75% of the year-over-year improvement in operating income before corporate expenses was via the Flight Support Group segment, and Heico is expanding this area with the acquisition of Wencor Group.
In early August, Heico completed the acquisition of Wencor Group from affiliates of Warburg Pincus and Wencor's management for $1.9 billion in cash and $150 million in Heico Class A common stock. The transaction was Heico's largest ever, with Wencor being about a quarter of Heico’s size.
Wencor is a large commercial and military aircraft aftermarket company offering factory-new, FAA-approved aircraft replacement parts, value-added distribution of high-use commercial & military aftermarket parts, and aircraft & engine accessory component repair and overhaul services. Its parts and repairs are found in hydraulic, pneumatic, electronic and electro-mechanical, cockpit and galley systems throughout numerous aircraft models.
Heico’s Future Glide Path
So, what comes next for Heico?
I expect conditions in the airplane maintenance market to remain tight for quite some time, thanks to a lack of skilled workers and the limited availability of parts. The supply chain problems will still be with us for another two to three years at the least, while demand from airlines globally will not go down.
Looking specifically at Heico, it independently develops replacement parts for highly complex aircraft components — the juiciest market segment in aerospace, with a fraction of the required research and development that OEMs spend.
And Heico's components for defense products are highly integrated into complex systems, which makes their replacement or substitution difficult and unlikely.
Add it all up, and this sets up almost perfect “flying” conditions for Heico. Buy it in the $155 to $168 range.
www.barchart.com
On the date of publication, Tony Daltorio did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
And according to a recent research note from Jefferies, three of the major U.S. airlines - American Airlines (AAL), Delta Air Lines (DAL), and United Airlines (UAL) - spent a whopping $2.2 billion on maintenance in the third quarter, a 45% increase from the same period in 2019, before the pandemic. A shortage of new planes, caused by supply chain issues, led to airlines spending more on maintenance and repairs than ever before, as they were forced to keep their existing aircraft in the air for longer. Second, older aircraft - due for retirement currently - have to fly longer than expected, given the issues with new generations of engines, as well as supply chain constraints.
|
And according to a recent research note from Jefferies, three of the major U.S. airlines - American Airlines (AAL), Delta Air Lines (DAL), and United Airlines (UAL) - spent a whopping $2.2 billion on maintenance in the third quarter, a 45% increase from the same period in 2019, before the pandemic. After its latest earnings report in late August, Chairman and CEO Laurans Mendelson said, “We are very pleased to report record quarterly consolidated net sales at both the Flight Support Group and the Electronic Technologies Group. Wencor is a large commercial and military aircraft aftermarket company offering factory-new, FAA-approved aircraft replacement parts, value-added distribution of high-use commercial & military aftermarket parts, and aircraft & engine accessory component repair and overhaul services.
|
And according to a recent research note from Jefferies, three of the major U.S. airlines - American Airlines (AAL), Delta Air Lines (DAL), and United Airlines (UAL) - spent a whopping $2.2 billion on maintenance in the third quarter, a 45% increase from the same period in 2019, before the pandemic. However, this year, the aerospace consultancy Aerodynamic Advisory estimates that the world’s airlines would spend more than $110 billion on maintenance, including labor and material, or about 14% of airlines’ total revenues. Wencor is a large commercial and military aircraft aftermarket company offering factory-new, FAA-approved aircraft replacement parts, value-added distribution of high-use commercial & military aftermarket parts, and aircraft & engine accessory component repair and overhaul services.
|
And according to a recent research note from Jefferies, three of the major U.S. airlines - American Airlines (AAL), Delta Air Lines (DAL), and United Airlines (UAL) - spent a whopping $2.2 billion on maintenance in the third quarter, a 45% increase from the same period in 2019, before the pandemic. Let me explain… Demand Soars for Airplane Maintenance Historically, maintenance spending has accounted for 8% to 10% of an airline’s cost to keep flying. However, this year, the aerospace consultancy Aerodynamic Advisory estimates that the world’s airlines would spend more than $110 billion on maintenance, including labor and material, or about 14% of airlines’ total revenues.
|
2115.0
|
2023-11-07 00:00:00 UTC
|
Embraer hopeful E2 jets can break into U.S. market, CEO says
|
AAL
|
https://www.nasdaq.com/articles/embraer-hopeful-e2-jets-can-break-into-u.s.-market-ceo-says
|
nan
|
nan
|
By Gabriel Araujo
SAO PAULO, Nov 7 (Reuters) - Brazilian planemaker Embraer EMBR3.SA has been trying to sell U.S. carriers on the merits of its E195-E2 jet as a "small narrow-body", even as demand in its No.1 market has remained focused on the smaller, first generation E175-E1.
The world's third-largest planemaker after Boeing BA.N and Airbus AIR.PA amassed fresh orders for 23 E175-E1 planes from both American AirlinesAAL.O and SkyWestSKYW.O in the third quarter, but sees room for its second generation plane to notch up its first orders there too.
"It is an aircraft that can very well complement the operation of large narrow-bodies," Chief Executive Francisco Gomes Neto said in an interview on Monday.
Breaking into the U.S. market with E2 family would be an important step for the planemaker to further improve its production mix, which this year should show for the first time more second generation jets being delivered than first generation ones.
Gomes Neto said he hopes that new flights by Canada's Porter Airlines to cities such as San Francisco and Tampa will help showcase the plane to U.S. carriers.
The Canadian firm ordered dozens of planes from Embraer since 2021, making it the first E2 customer in North America.
The E195-E2 seats up to 146 passengers, while the E175-E1 has up to 88 seats.
"I think we'll manage to convince them that the E195-E2 is not a regional plane, but what we've been calling a 'small narrow-body' that the majors could operate very efficiently, helping them offer a higher frequency of flights during the day, explore routes, open routes," Gomes Neto said.
"We have a huge opportunity in the U.S."
He mentioned KLM AIRF.PA and Brazil's Azul AZUL4.SA as airlines that have succeeded in operating both the E195-E2 and larger narrow-bodies such as the Airbus A320. The Dutch carrier also flies the E175.
"It's a very efficient aircraft. When you fly it with an 80% load factor it's very, very profitable, and that's the point we've been trying to show the U.S. majors."
That doesn't mean, however, that demand for the E175-E1 would necessarily drop, the executive noted, adding that the company forecasts demand of at least 300 aircraft within the next 10 years.
As the recent pilot shortage seen in the U.S. eases, Gomes Neto said, operators of the E175-E1, which Embraer has dubbed the backbone of the U.S. regional aviation market, will tend to make fleet renewal efforts.
"It's a versatile plane that meets that regional aviation demand very well," the CEO said. "So we do expect very good demand for it, but we are already working to also convince airlines about the E2's potential."
(Reporting by Gabriel Araujo; editing by David Evans)
((Gabriel.Araujo2@thomsonreuters.com; +55 11 5047-3352;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
The world's third-largest planemaker after Boeing BA.N and Airbus AIR.PA amassed fresh orders for 23 E175-E1 planes from both American AirlinesAAL.O and SkyWestSKYW.O in the third quarter, but sees room for its second generation plane to notch up its first orders there too. By Gabriel Araujo SAO PAULO, Nov 7 (Reuters) - Brazilian planemaker Embraer EMBR3.SA has been trying to sell U.S. carriers on the merits of its E195-E2 jet as a "small narrow-body", even as demand in its No.1 market has remained focused on the smaller, first generation E175-E1. Gomes Neto said he hopes that new flights by Canada's Porter Airlines to cities such as San Francisco and Tampa will help showcase the plane to U.S. carriers.
|
The world's third-largest planemaker after Boeing BA.N and Airbus AIR.PA amassed fresh orders for 23 E175-E1 planes from both American AirlinesAAL.O and SkyWestSKYW.O in the third quarter, but sees room for its second generation plane to notch up its first orders there too. "It is an aircraft that can very well complement the operation of large narrow-bodies," Chief Executive Francisco Gomes Neto said in an interview on Monday. "I think we'll manage to convince them that the E195-E2 is not a regional plane, but what we've been calling a 'small narrow-body' that the majors could operate very efficiently, helping them offer a higher frequency of flights during the day, explore routes, open routes," Gomes Neto said.
|
The world's third-largest planemaker after Boeing BA.N and Airbus AIR.PA amassed fresh orders for 23 E175-E1 planes from both American AirlinesAAL.O and SkyWestSKYW.O in the third quarter, but sees room for its second generation plane to notch up its first orders there too. By Gabriel Araujo SAO PAULO, Nov 7 (Reuters) - Brazilian planemaker Embraer EMBR3.SA has been trying to sell U.S. carriers on the merits of its E195-E2 jet as a "small narrow-body", even as demand in its No.1 market has remained focused on the smaller, first generation E175-E1. "I think we'll manage to convince them that the E195-E2 is not a regional plane, but what we've been calling a 'small narrow-body' that the majors could operate very efficiently, helping them offer a higher frequency of flights during the day, explore routes, open routes," Gomes Neto said.
|
The world's third-largest planemaker after Boeing BA.N and Airbus AIR.PA amassed fresh orders for 23 E175-E1 planes from both American AirlinesAAL.O and SkyWestSKYW.O in the third quarter, but sees room for its second generation plane to notch up its first orders there too. "It is an aircraft that can very well complement the operation of large narrow-bodies," Chief Executive Francisco Gomes Neto said in an interview on Monday. The Canadian firm ordered dozens of planes from Embraer since 2021, making it the first E2 customer in North America.
|
2116.0
|
2023-11-07 00:00:00 UTC
|
Impala Platinum starts voluntary job cuts at South African mines
|
AAL
|
https://www.nasdaq.com/articles/impala-platinum-starts-voluntary-job-cuts-at-south-african-mines
|
nan
|
nan
|
By Felix Njini
JOHANNESBURG, Nov 7 (Reuters) - Impala Platinum IMPJ.J said it was offering voluntary job cuts to workers at some of the world's deepest platinum mining shafts in South Africa in a bid to cut costs as prices for the metal fall.
The Johannesburg-based platinum miner started the process at its head office last month, and is now extending the exit packages to its sprawling Rustenburg mining complex in North West province, company spokesperson Johan Theron told Reuters.
He declined to say how many jobs the company expects to cut and how much money it plans to save.
"We are obviously doing everything to reduce costs," Theron said. "Labour is a big cost component so you always start with labour by offering voluntary separation packages."
The price for palladium has plunged nearly 40% so far this year while primary metal platinum is down 14%. Demand for particularly palladium has been hit by weakening demand in China.
Longer term, demand for the metals which are used in catalysts that curb vehicle emissions, is threatened by rise in battery electric vehicles.
"We find ourselves asking how supply will respond in the face of weak prevailing prices," BofA Securities analysts said in a note. "With cash flow under pressure at many mines, we see shutdowns or even permanent closures as likely."
Impala rival Sibanye Stillwater SSWJ.J said last month it plans to cut more than 4,000 jobs and close some of its old platinum mining shafts that are running out of commercially viable ore. Anglo American AAL.L said in October it is weighing job cuts at its head offices in South Africa and across the globe in a bid to save costs.
South African platinum mining shafts are among the world's deepest, oldest and most expensive to operate. Impala's Rustenburg mines are "scrapping by for now" and further action could be taken if prices remain low, Theron said.
"The shafts are not making money, but they are not losing money either, they are just getting by," Theron said. Impala is also weighing postponing planned spending at some expansion projects at its Zimplats ZIM.AX and Mimosa units in Zimbabwe as well as Two Rivers and Marula mines in South Africa.
"We are in a process to reset the organization for a lower price environment," Theron said. "If all the initiatives don’t take you to a point where you can survive, you have to do more."
(Reporting by Felix Njini; additional reporting by Nelson Banya; editing by Miral Fahmy and Louise Heavens)
((Felix.Njini@thomsonreuters.com; Reuters Messaging: felix.njini@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Impala rival Sibanye Stillwater SSWJ.J said last month it plans to cut more than 4,000 jobs and close some of its old platinum mining shafts that are running out of commercially viable ore. Anglo American AAL.L said in October it is weighing job cuts at its head offices in South Africa and across the globe in a bid to save costs. The Johannesburg-based platinum miner started the process at its head office last month, and is now extending the exit packages to its sprawling Rustenburg mining complex in North West province, company spokesperson Johan Theron told Reuters. Impala is also weighing postponing planned spending at some expansion projects at its Zimplats ZIM.AX and Mimosa units in Zimbabwe as well as Two Rivers and Marula mines in South Africa.
|
Impala rival Sibanye Stillwater SSWJ.J said last month it plans to cut more than 4,000 jobs and close some of its old platinum mining shafts that are running out of commercially viable ore. Anglo American AAL.L said in October it is weighing job cuts at its head offices in South Africa and across the globe in a bid to save costs. By Felix Njini JOHANNESBURG, Nov 7 (Reuters) - Impala Platinum IMPJ.J said it was offering voluntary job cuts to workers at some of the world's deepest platinum mining shafts in South Africa in a bid to cut costs as prices for the metal fall. South African platinum mining shafts are among the world's deepest, oldest and most expensive to operate.
|
Impala rival Sibanye Stillwater SSWJ.J said last month it plans to cut more than 4,000 jobs and close some of its old platinum mining shafts that are running out of commercially viable ore. Anglo American AAL.L said in October it is weighing job cuts at its head offices in South Africa and across the globe in a bid to save costs. By Felix Njini JOHANNESBURG, Nov 7 (Reuters) - Impala Platinum IMPJ.J said it was offering voluntary job cuts to workers at some of the world's deepest platinum mining shafts in South Africa in a bid to cut costs as prices for the metal fall. The Johannesburg-based platinum miner started the process at its head office last month, and is now extending the exit packages to its sprawling Rustenburg mining complex in North West province, company spokesperson Johan Theron told Reuters.
|
Impala rival Sibanye Stillwater SSWJ.J said last month it plans to cut more than 4,000 jobs and close some of its old platinum mining shafts that are running out of commercially viable ore. Anglo American AAL.L said in October it is weighing job cuts at its head offices in South Africa and across the globe in a bid to save costs. By Felix Njini JOHANNESBURG, Nov 7 (Reuters) - Impala Platinum IMPJ.J said it was offering voluntary job cuts to workers at some of the world's deepest platinum mining shafts in South Africa in a bid to cut costs as prices for the metal fall. Demand for particularly palladium has been hit by weakening demand in China.
|
2117.0
|
2023-11-07 00:00:00 UTC
|
Impala Platinum starts voluntary job cuts at South Africa mines
|
AAL
|
https://www.nasdaq.com/articles/impala-platinum-starts-voluntary-job-cuts-at-south-africa-mines
|
nan
|
nan
|
By Felix Njini
JOHANNESBURG, Nov 7 (Reuters) - Impala Platinum IMPJ.J said it was offering voluntary job cuts to workers at some of the world's deepest platinum mining shafts in South Africa in a bid to cut costs as prices for the metal fall.
The Johannesburg-based platinum miner started the process at its head office last month, and is now extending the exit packages to its sprawling Rustenburg mining complex in North West province, company spokesperson Johan Theron told Reuters.
He declined to say how many jobs the company expects to cut and how much money it plans to save through the process.
"We are obviously doing everything to reduce costs," Theron said. "Labour is a big cost component so you always start with labour by offering voluntary separation packages."
Platinum prices are down 14% so far this year, with analysts and traders lowering their 2024 forecasts due to weak auto production and concerns about a global economic slowdown, a recent Reuters poll showed.
Platinum and palladium are primarily used by automakers, which embed them in engine exhausts to reduce emissions. Platinum is also used in other industries and for investment. Palladium prices are nearly 40% lower so far this year.
Impala rival Sibanye Stillwater SSWJ.J said last month it plans to cut more than 4,000 jobs and close some of its old platinum mining shafts that are running out of commercially viable ore. Anglo American AAL.L said in October it is weighing job cuts at its head offices in South Africa and across the globe in a bid to save costs.
South African platinum mining shafts are among the world's deepest, oldest and most expensive to operate. Impala's Rustenburg mines are "scrapping by for now" and further action could be taken if prices remain low, Theron said.
"The shafts are not making money, but they are not losing money either, they are just getting by," Theron said. Impala is also weighing postponing planned spending at some expansion projects at its Zimplats ZIM.AX and Mimosa units in Zimbabwe as well as Two Rivers and Marula mines in South Africa.
"We are in a process to reset the organization for a lower price environment," Theron said. "If all the initiatives don’t take you to a point where you can survive, you have to do more."
(Reporting by Felix Njini; additional reporting by Nelson Banya; editing by Miral Fahmy)
((Felix.Njini@thomsonreuters.com; Reuters Messaging: felix.njini@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Impala rival Sibanye Stillwater SSWJ.J said last month it plans to cut more than 4,000 jobs and close some of its old platinum mining shafts that are running out of commercially viable ore. Anglo American AAL.L said in October it is weighing job cuts at its head offices in South Africa and across the globe in a bid to save costs. The Johannesburg-based platinum miner started the process at its head office last month, and is now extending the exit packages to its sprawling Rustenburg mining complex in North West province, company spokesperson Johan Theron told Reuters. Platinum prices are down 14% so far this year, with analysts and traders lowering their 2024 forecasts due to weak auto production and concerns about a global economic slowdown, a recent Reuters poll showed.
|
Impala rival Sibanye Stillwater SSWJ.J said last month it plans to cut more than 4,000 jobs and close some of its old platinum mining shafts that are running out of commercially viable ore. Anglo American AAL.L said in October it is weighing job cuts at its head offices in South Africa and across the globe in a bid to save costs. By Felix Njini JOHANNESBURG, Nov 7 (Reuters) - Impala Platinum IMPJ.J said it was offering voluntary job cuts to workers at some of the world's deepest platinum mining shafts in South Africa in a bid to cut costs as prices for the metal fall. South African platinum mining shafts are among the world's deepest, oldest and most expensive to operate.
|
Impala rival Sibanye Stillwater SSWJ.J said last month it plans to cut more than 4,000 jobs and close some of its old platinum mining shafts that are running out of commercially viable ore. Anglo American AAL.L said in October it is weighing job cuts at its head offices in South Africa and across the globe in a bid to save costs. By Felix Njini JOHANNESBURG, Nov 7 (Reuters) - Impala Platinum IMPJ.J said it was offering voluntary job cuts to workers at some of the world's deepest platinum mining shafts in South Africa in a bid to cut costs as prices for the metal fall. The Johannesburg-based platinum miner started the process at its head office last month, and is now extending the exit packages to its sprawling Rustenburg mining complex in North West province, company spokesperson Johan Theron told Reuters.
|
Impala rival Sibanye Stillwater SSWJ.J said last month it plans to cut more than 4,000 jobs and close some of its old platinum mining shafts that are running out of commercially viable ore. Anglo American AAL.L said in October it is weighing job cuts at its head offices in South Africa and across the globe in a bid to save costs. By Felix Njini JOHANNESBURG, Nov 7 (Reuters) - Impala Platinum IMPJ.J said it was offering voluntary job cuts to workers at some of the world's deepest platinum mining shafts in South Africa in a bid to cut costs as prices for the metal fall. He declined to say how many jobs the company expects to cut and how much money it plans to save through the process.
|
2118.0
|
2023-11-06 00:00:00 UTC
|
JetBlue CEO at trial calls Spirit merger key to taking on larger airlines
|
AAL
|
https://www.nasdaq.com/articles/jetblue-ceo-at-trial-calls-spirit-merger-key-to-taking-on-larger-airlines
|
nan
|
nan
|
By Nate Raymond
BOSTON, Nov 6 (Reuters) - The CEO of JetBlue Airways testified in court on Monday that the company's proposed $3.8 billion acquisition of Spirit Airlines is a critical part of his plan to turn the airline into a more significant competitor to the four largest U.S. air carriers.
JetBlue CEO Robin Hayes defended the deal being challenged by the U.S. Department of Justice in federal court in Boston, saying a merger was the only way to grow JetBlue into a long-term national challenger to the dominant airlines.
The Justice Department, along with Democratic state attorneys general from six states and the District of Columbia, sued in March to block the merger, which would combine the sixth and seventh largest U.S. airlines.
The four largest U.S. carriers - United Airlines UAL.O, American Airlines AAL.O, Delta Air Lines DAL.N and Southwest Airlines LUV.N - control 80% of the domestic market, compared with JetBlue's roughly 5% market share, Hayes said.
He said he had long believed that "consolidation among the smaller airlines was in some ways inevitable to compete with the larger airlines," and that the "need for us to grow quickly and inorganically, that never went away."
"You'd never ever get to the size they are based on organic growth," he testified under questioning by JetBlue lawyer Ryan Shores. "And let's recall they didn't get there through organic growth either. They did so through mergers and acquisitions."
The Justice Department counters that passengers would suffer roughly $1 billion in net harm annually if JetBlue absorbs Spirit, causing fares to rise.
Under questioning by Justice Department attorney Edward Duffy, Hayes acknowledged that the merger would eliminate no-frill, low-cost Spirit as an independent brand by combining it with JetBlue, which he admitted had, on average, higher fares.
But he said JetBlue had a history of offering low fares that forced larger airlines to cut prices and that most people would continue to benefit from its presence.
Hayes said JetBlue had tried to address U.S. regulators' concerns by agreeing to divest gates and slots at key airports in New York City, Boston, Newark, New Jersey, and Fort Lauderdale.
U.S. District William Young, who has said he would try to rule by year's end, at one point when questioning Hayes raised the prospect of placing conditions on the deal's approval when he asked whether "you had ever heard of a judicial decision that says this doesn't pass muster, but if you did the following," it could proceed.
Hayes said he had not seen such a court decision. The trial is a rarity for the Justice Department, which historically has approved airline mergers without trials conditioned on asset divestitures.
(Reporting by Nate Raymond in Boston, Editing by Alexia Garamfalvi)
((Nate.Raymond@thomsonreuters.com and Twitter @nateraymond; 347-243-6917; Reuters Messaging: nate.raymond.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
The four largest U.S. carriers - United Airlines UAL.O, American Airlines AAL.O, Delta Air Lines DAL.N and Southwest Airlines LUV.N - control 80% of the domestic market, compared with JetBlue's roughly 5% market share, Hayes said. Under questioning by Justice Department attorney Edward Duffy, Hayes acknowledged that the merger would eliminate no-frill, low-cost Spirit as an independent brand by combining it with JetBlue, which he admitted had, on average, higher fares. Hayes said JetBlue had tried to address U.S. regulators' concerns by agreeing to divest gates and slots at key airports in New York City, Boston, Newark, New Jersey, and Fort Lauderdale.
|
The four largest U.S. carriers - United Airlines UAL.O, American Airlines AAL.O, Delta Air Lines DAL.N and Southwest Airlines LUV.N - control 80% of the domestic market, compared with JetBlue's roughly 5% market share, Hayes said. By Nate Raymond BOSTON, Nov 6 (Reuters) - The CEO of JetBlue Airways testified in court on Monday that the company's proposed $3.8 billion acquisition of Spirit Airlines is a critical part of his plan to turn the airline into a more significant competitor to the four largest U.S. air carriers. JetBlue CEO Robin Hayes defended the deal being challenged by the U.S. Department of Justice in federal court in Boston, saying a merger was the only way to grow JetBlue into a long-term national challenger to the dominant airlines.
|
The four largest U.S. carriers - United Airlines UAL.O, American Airlines AAL.O, Delta Air Lines DAL.N and Southwest Airlines LUV.N - control 80% of the domestic market, compared with JetBlue's roughly 5% market share, Hayes said. By Nate Raymond BOSTON, Nov 6 (Reuters) - The CEO of JetBlue Airways testified in court on Monday that the company's proposed $3.8 billion acquisition of Spirit Airlines is a critical part of his plan to turn the airline into a more significant competitor to the four largest U.S. air carriers. JetBlue CEO Robin Hayes defended the deal being challenged by the U.S. Department of Justice in federal court in Boston, saying a merger was the only way to grow JetBlue into a long-term national challenger to the dominant airlines.
|
The four largest U.S. carriers - United Airlines UAL.O, American Airlines AAL.O, Delta Air Lines DAL.N and Southwest Airlines LUV.N - control 80% of the domestic market, compared with JetBlue's roughly 5% market share, Hayes said. By Nate Raymond BOSTON, Nov 6 (Reuters) - The CEO of JetBlue Airways testified in court on Monday that the company's proposed $3.8 billion acquisition of Spirit Airlines is a critical part of his plan to turn the airline into a more significant competitor to the four largest U.S. air carriers. Under questioning by Justice Department attorney Edward Duffy, Hayes acknowledged that the merger would eliminate no-frill, low-cost Spirit as an independent brand by combining it with JetBlue, which he admitted had, on average, higher fares.
|
2119.0
|
2023-11-06 00:00:00 UTC
|
US FAA to hold new round of runway-safety meetings after close calls
|
AAL
|
https://www.nasdaq.com/articles/us-faa-to-hold-new-round-of-runway-safety-meetings-after-close-calls
|
nan
|
nan
|
By David Shepardson
WASHINGTON, Nov 6 (Reuters) - The U.S. Federal Aviation Administration (FAA) said on Monday it would hold runway safety meetings at 16 additional airports in the coming weeks after a series of troubling close-call aviation incidents.
In August, the FAA said it was holding meetings at 90 airports after the National Transportation Safety Board said it was investigating seven runway incursion events since January, including some that were potentially catastrophic.
The new meetings with the FAA, airlines, pilots, airport vehicle drivers and others will take place by Dec. 31. They will include Boston, Newark, Washington Reagan and the Dallas-Fort Worth airports, address unique concerns at individual airports and develop plans to mitigate or avoid risks.
On Thursday, a U.S. Senate Commerce subcommittee will hold a hearing on recent incidents that raised questions about FAA air traffic control operations.
The hearing will include FAA Air Traffic Organization head Tim Arel, National Transportation Safety Board Chair Jennifer Homendy, National Air Traffic Controllers Association (NATCA) President Rich Santa, Air Lines Pilots Association President Jason Ambrosi and former FAA administrator Randy Babbitt.
In August, a Southwest Airlines LUV.N Boeing 737 and a Cessna business jet approached within 100 feet (30 meters) of each other at San Diego International Airport after an air traffic controller cleared one plane to land and the other to take off from the same runway.
A similar near-collision occurred in February in Austin, Texas, when a FedEx FDX.N cargo plane approached to land and a Southwest Boeing 737 preparing to take off came within 115 feet (35 meters) of each other in poor visibility conditions.
The FAA said in September it was seeking recommendations on making it compulsory for airports to include cockpit-alerting technologies that could improve runway safety.
It also commissioned a safety review team that is expected to release findings this month.
(Editing by Bernadette Baum)
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
In August, the FAA said it was holding meetings at 90 airports after the National Transportation Safety Board said it was investigating seven runway incursion events since January, including some that were potentially catastrophic. In August, a Southwest Airlines LUV.N Boeing 737 and a Cessna business jet approached within 100 feet (30 meters) of each other at San Diego International Airport after an air traffic controller cleared one plane to land and the other to take off from the same runway. A similar near-collision occurred in February in Austin, Texas, when a FedEx FDX.N cargo plane approached to land and a Southwest Boeing 737 preparing to take off came within 115 feet (35 meters) of each other in poor visibility conditions.
|
In August, the FAA said it was holding meetings at 90 airports after the National Transportation Safety Board said it was investigating seven runway incursion events since January, including some that were potentially catastrophic. On Thursday, a U.S. Senate Commerce subcommittee will hold a hearing on recent incidents that raised questions about FAA air traffic control operations. The hearing will include FAA Air Traffic Organization head Tim Arel, National Transportation Safety Board Chair Jennifer Homendy, National Air Traffic Controllers Association (NATCA) President Rich Santa, Air Lines Pilots Association President Jason Ambrosi and former FAA administrator Randy Babbitt.
|
By David Shepardson WASHINGTON, Nov 6 (Reuters) - The U.S. Federal Aviation Administration (FAA) said on Monday it would hold runway safety meetings at 16 additional airports in the coming weeks after a series of troubling close-call aviation incidents. In August, the FAA said it was holding meetings at 90 airports after the National Transportation Safety Board said it was investigating seven runway incursion events since January, including some that were potentially catastrophic. The hearing will include FAA Air Traffic Organization head Tim Arel, National Transportation Safety Board Chair Jennifer Homendy, National Air Traffic Controllers Association (NATCA) President Rich Santa, Air Lines Pilots Association President Jason Ambrosi and former FAA administrator Randy Babbitt.
|
By David Shepardson WASHINGTON, Nov 6 (Reuters) - The U.S. Federal Aviation Administration (FAA) said on Monday it would hold runway safety meetings at 16 additional airports in the coming weeks after a series of troubling close-call aviation incidents. The new meetings with the FAA, airlines, pilots, airport vehicle drivers and others will take place by Dec. 31. The hearing will include FAA Air Traffic Organization head Tim Arel, National Transportation Safety Board Chair Jennifer Homendy, National Air Traffic Controllers Association (NATCA) President Rich Santa, Air Lines Pilots Association President Jason Ambrosi and former FAA administrator Randy Babbitt.
|
2120.0
|
2023-11-06 00:00:00 UTC
|
Chile copper production uneven in September - Cochilco
|
AAL
|
https://www.nasdaq.com/articles/chile-copper-production-uneven-in-september-cochilco
|
nan
|
nan
|
Updates with additional detail in paragraphs 2 and 4
SANTIAGO, Nov 6 (Reuters) - Production at Chile's largest copper mines was uneven in September, dragged down by weak performance from state-run miner Codelco, the Chilean Copper Commission (Cochilco) said on Monday.
Codelco's production slipped 5.3% year-over-year in the monthto 116,700 metric tons, Cochilco said. Meanwhile, the BHP-controlled BHP.AX Escondida mine saw production jump 25.5%, with the Collahuasi mine run by Glencore GLEN.L and Anglo American AAL.L inching up 1.3%.
Codelco, the world's largest miner of the red metal, has struggled with operational issues and high debt, with its production falling to a 25-year low last year.
Overall production in Chile increased 2.2% in September to bring in 444,000 tons of copper, Cochilco said.
(Reporting by Fabian Cambero; Writing by Kylie Madry; Editing by Brendan O'Boyle)
((Kylie.Madry@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Meanwhile, the BHP-controlled BHP.AX Escondida mine saw production jump 25.5%, with the Collahuasi mine run by Glencore GLEN.L and Anglo American AAL.L inching up 1.3%. Updates with additional detail in paragraphs 2 and 4 SANTIAGO, Nov 6 (Reuters) - Production at Chile's largest copper mines was uneven in September, dragged down by weak performance from state-run miner Codelco, the Chilean Copper Commission (Cochilco) said on Monday. Codelco's production slipped 5.3% year-over-year in the monthto 116,700 metric tons, Cochilco said.
|
Meanwhile, the BHP-controlled BHP.AX Escondida mine saw production jump 25.5%, with the Collahuasi mine run by Glencore GLEN.L and Anglo American AAL.L inching up 1.3%. Updates with additional detail in paragraphs 2 and 4 SANTIAGO, Nov 6 (Reuters) - Production at Chile's largest copper mines was uneven in September, dragged down by weak performance from state-run miner Codelco, the Chilean Copper Commission (Cochilco) said on Monday. Codelco's production slipped 5.3% year-over-year in the monthto 116,700 metric tons, Cochilco said.
|
Meanwhile, the BHP-controlled BHP.AX Escondida mine saw production jump 25.5%, with the Collahuasi mine run by Glencore GLEN.L and Anglo American AAL.L inching up 1.3%. Updates with additional detail in paragraphs 2 and 4 SANTIAGO, Nov 6 (Reuters) - Production at Chile's largest copper mines was uneven in September, dragged down by weak performance from state-run miner Codelco, the Chilean Copper Commission (Cochilco) said on Monday. Codelco, the world's largest miner of the red metal, has struggled with operational issues and high debt, with its production falling to a 25-year low last year.
|
Meanwhile, the BHP-controlled BHP.AX Escondida mine saw production jump 25.5%, with the Collahuasi mine run by Glencore GLEN.L and Anglo American AAL.L inching up 1.3%. Codelco, the world's largest miner of the red metal, has struggled with operational issues and high debt, with its production falling to a 25-year low last year. Overall production in Chile increased 2.2% in September to bring in 444,000 tons of copper, Cochilco said.
|
2121.0
|
2023-11-06 00:00:00 UTC
|
Botswana conducts due diligence on HB Antwerp stake, president says
|
AAL
|
https://www.nasdaq.com/articles/botswana-conducts-due-diligence-on-hb-antwerp-stake-president-says
|
nan
|
nan
|
By Brian Benza
GABORONE, Nov 6 (Reuters) - Botswana is conducting due diligence on HB Antwerp, as the world's top diamond producing country by value seeks to finalise a deal to acquire a 24% shareholding in the Belgian gem trader, President Mokgweetsi Masisi said on Monday.
At the height of talks for a new sales contract with De Beers in March, Botswana announced a deal to become a shareholder in HB Antwerp and to supply the trader with 10% of the rough diamond output from the state-owned Okavango Diamond Company (ODC) for five years.
But the proposed deal was called into question in September when Lucara Diamond LUC.TOterminated its sales agreement with the Belgian gem trader, citing financial irregularities. HB and Lucara first entered into a diamond sales agreement in 2020, which was extended for 10 years in 2022.
“Due process of detailed legal and commercial due diligence is now ongoing to finalise the deal,” Masisi said on Monday during a state of the nation address.
After Lucara cut ties with HB Antwerp in September, Masisi told a media briefing the country would reassess the proposed deal to determine its next course of action.
Masisi has said the deal with HB Antwerp gives Botswana a foothold in the diamond downstream industry.
"HB was giving us an opportunity that we never got from our partner De Beers and that’s why we were willing to take the risk with a 10% allocation of ODC supply,” Masisi said in September.
Botswana and Anglo American AAL.L unit De Beers in June agreed a ten-year diamond sales agreement, which will see ODC's share of Debswana output rise to 30% from 25% previously, rising to 40% in five years' time and eventually 50% by the end of the contract.
(Reporting by Brian Benza; Editing by Nelson Banya and Barbara Lewis)
((Nelson.Banya@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Botswana and Anglo American AAL.L unit De Beers in June agreed a ten-year diamond sales agreement, which will see ODC's share of Debswana output rise to 30% from 25% previously, rising to 40% in five years' time and eventually 50% by the end of the contract. By Brian Benza GABORONE, Nov 6 (Reuters) - Botswana is conducting due diligence on HB Antwerp, as the world's top diamond producing country by value seeks to finalise a deal to acquire a 24% shareholding in the Belgian gem trader, President Mokgweetsi Masisi said on Monday. But the proposed deal was called into question in September when Lucara Diamond LUC.TOterminated its sales agreement with the Belgian gem trader, citing financial irregularities.
|
Botswana and Anglo American AAL.L unit De Beers in June agreed a ten-year diamond sales agreement, which will see ODC's share of Debswana output rise to 30% from 25% previously, rising to 40% in five years' time and eventually 50% by the end of the contract. By Brian Benza GABORONE, Nov 6 (Reuters) - Botswana is conducting due diligence on HB Antwerp, as the world's top diamond producing country by value seeks to finalise a deal to acquire a 24% shareholding in the Belgian gem trader, President Mokgweetsi Masisi said on Monday. At the height of talks for a new sales contract with De Beers in March, Botswana announced a deal to become a shareholder in HB Antwerp and to supply the trader with 10% of the rough diamond output from the state-owned Okavango Diamond Company (ODC) for five years.
|
Botswana and Anglo American AAL.L unit De Beers in June agreed a ten-year diamond sales agreement, which will see ODC's share of Debswana output rise to 30% from 25% previously, rising to 40% in five years' time and eventually 50% by the end of the contract. By Brian Benza GABORONE, Nov 6 (Reuters) - Botswana is conducting due diligence on HB Antwerp, as the world's top diamond producing country by value seeks to finalise a deal to acquire a 24% shareholding in the Belgian gem trader, President Mokgweetsi Masisi said on Monday. At the height of talks for a new sales contract with De Beers in March, Botswana announced a deal to become a shareholder in HB Antwerp and to supply the trader with 10% of the rough diamond output from the state-owned Okavango Diamond Company (ODC) for five years.
|
Botswana and Anglo American AAL.L unit De Beers in June agreed a ten-year diamond sales agreement, which will see ODC's share of Debswana output rise to 30% from 25% previously, rising to 40% in five years' time and eventually 50% by the end of the contract. By Brian Benza GABORONE, Nov 6 (Reuters) - Botswana is conducting due diligence on HB Antwerp, as the world's top diamond producing country by value seeks to finalise a deal to acquire a 24% shareholding in the Belgian gem trader, President Mokgweetsi Masisi said on Monday. At the height of talks for a new sales contract with De Beers in March, Botswana announced a deal to become a shareholder in HB Antwerp and to supply the trader with 10% of the rough diamond output from the state-owned Okavango Diamond Company (ODC) for five years.
|
2122.0
|
2023-11-06 00:00:00 UTC
|
New Strong Sell Stocks for November 6th
|
AAL
|
https://www.nasdaq.com/articles/new-strong-sell-stocks-for-november-6th
|
nan
|
nan
|
Here are three stocks added to the Zacks Rank #5 (Strong Sell) List today:
American Axle & Manufacturing Holdings AXL is a leading supplier of driveline and drivetrain systems, modules and components for the light vehicle market. The Zacks Consensus Estimate for its current year earnings has been revised 81.6% downward over the last 60 days.
American Airlines AAL is a provider of scheduled air transportation services for passengers and cargo. The Zacks Consensus Estimate for its current year earnings has been revised 24.8% downward over the last 60 days.
AdvanSix ASIX is a producer and supplier of Nylon 6 materials. The Zacks Consensus Estimate for its current year earnings has been revised almost 5.8% downward over the last 60 days.
View the entire Zacks Rank #5 List.
Zacks Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
Download Free ChatGPT Stock Report Right Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
American Axle & Manufacturing Holdings, Inc. (AXL) : Free Stock Analysis Report
American Airlines Group Inc. (AAL) : Free Stock Analysis Report
AdvanSix (ASIX) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
American Airlines AAL is a provider of scheduled air transportation services for passengers and cargo. Click to get this free report American Axle & Manufacturing Holdings, Inc. (AXL) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report AdvanSix (ASIX) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Reveals ChatGPT "Sleeper" Stock One little-known company is at the heart of an especially brilliant Artificial Intelligence sector.
|
Click to get this free report American Axle & Manufacturing Holdings, Inc. (AXL) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report AdvanSix (ASIX) : Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines AAL is a provider of scheduled air transportation services for passengers and cargo. Here are three stocks added to the Zacks Rank #5 (Strong Sell) List today: American Axle & Manufacturing Holdings AXL is a leading supplier of driveline and drivetrain systems, modules and components for the light vehicle market.
|
Click to get this free report American Axle & Manufacturing Holdings, Inc. (AXL) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report AdvanSix (ASIX) : Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines AAL is a provider of scheduled air transportation services for passengers and cargo. Here are three stocks added to the Zacks Rank #5 (Strong Sell) List today: American Axle & Manufacturing Holdings AXL is a leading supplier of driveline and drivetrain systems, modules and components for the light vehicle market.
|
Click to get this free report American Axle & Manufacturing Holdings, Inc. (AXL) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report AdvanSix (ASIX) : Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines AAL is a provider of scheduled air transportation services for passengers and cargo. Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research?
|
2123.0
|
2023-11-03 00:00:00 UTC
|
Validea Detailed Fundamental Analysis - AAL
|
AAL
|
https://www.nasdaq.com/articles/validea-detailed-fundamental-analysis-aal-7
|
nan
|
nan
|
Below is Validea's guru fundamental report for AMERICAN AIRLINES GROUP INC (AAL). Of the 22 guru strategies we follow, AAL rates highest using our Acquirer's Multiple Investor model based on the published strategy of Tobias Carlisle. This deep value model looks for inexpensive stocks that could be potential takeover targets.
AMERICAN AIRLINES GROUP INC (AAL) is a mid-cap value stock in the Airline industry. The rating using this strategy is 84% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
SECTOR: PASS
QUALITY: PASS
ACQUIRER'S MULTIPLE FAIL
Detailed Analysis of AMERICAN AIRLINES GROUP INC
AAL Guru Analysis
AAL Fundamental Analysis
More Information on Tobias Carlisle
Tobias Carlisle Portfolio
About Tobias Carlisle: Tobias Carlisle is a widely recognized expert on deep value investing. He is the author of "The Acquirer's Multiple: How the Billionaire Contrarians of Deep Value Beat the Market" and the founder of Acquirer's Funds. He is also the author of "Deep Value: Why Activists Investors and Other Contrarians Battle for Control of Losing Corporations" and co-author of Quantitative Value: "A Practitioner's Guide to Automating Intelligent Investment and Eliminating Behavioral Errors" Tobias is originally from Australia, where he worked an an analyst at an activist hedge fund and was a lawyer specializing in mergers and acquisitions.
Additional Research Links
Top Large-Cap Growth Stocks
Factor-Based Stock Portfolios
Dividend Aristocrats 2023
High Insider Ownership Stocks
Top S&P 500 Stocks
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Below is Validea's guru fundamental report for AMERICAN AIRLINES GROUP INC (AAL). Of the 22 guru strategies we follow, AAL rates highest using our Acquirer's Multiple Investor model based on the published strategy of Tobias Carlisle. AMERICAN AIRLINES GROUP INC (AAL) is a mid-cap value stock in the Airline industry.
|
Below is Validea's guru fundamental report for AMERICAN AIRLINES GROUP INC (AAL). Of the 22 guru strategies we follow, AAL rates highest using our Acquirer's Multiple Investor model based on the published strategy of Tobias Carlisle. Detailed Analysis of AMERICAN AIRLINES GROUP INC AAL Guru Analysis AAL Fundamental Analysis More Information on Tobias Carlisle Tobias Carlisle Portfolio About Tobias Carlisle: Tobias Carlisle is a widely recognized expert on deep value investing.
|
Of the 22 guru strategies we follow, AAL rates highest using our Acquirer's Multiple Investor model based on the published strategy of Tobias Carlisle. Detailed Analysis of AMERICAN AIRLINES GROUP INC AAL Guru Analysis AAL Fundamental Analysis More Information on Tobias Carlisle Tobias Carlisle Portfolio About Tobias Carlisle: Tobias Carlisle is a widely recognized expert on deep value investing. Below is Validea's guru fundamental report for AMERICAN AIRLINES GROUP INC (AAL).
|
Below is Validea's guru fundamental report for AMERICAN AIRLINES GROUP INC (AAL). Of the 22 guru strategies we follow, AAL rates highest using our Acquirer's Multiple Investor model based on the published strategy of Tobias Carlisle. Detailed Analysis of AMERICAN AIRLINES GROUP INC AAL Guru Analysis AAL Fundamental Analysis More Information on Tobias Carlisle Tobias Carlisle Portfolio About Tobias Carlisle: Tobias Carlisle is a widely recognized expert on deep value investing.
|
2124.0
|
2023-11-02 00:00:00 UTC
|
De Beers agrees five-year wage deal with S.African union
|
AAL
|
https://www.nasdaq.com/articles/de-beers-agrees-five-year-wage-deal-with-s.african-union
|
nan
|
nan
|
Nov 2 (Reuters) - Anglo American Plc's AAL.L De Beers on Thursday signed a five-year wage deal with the National Union of Mineworkers (NUM) which represents workers at its South African diamond operations.
The agreement will see employees receiving a 7% increase in 2023, and 6% in the subsequent years until April 30 2028, De Beers said in a statement. The increase takes the minimum entry level basic wage to 17,630 rand ($954.30) per month, excluding allowances, De Beers said in a statement.
The agreement also allows for participation in Anglo American employee share ownership plans, it added.
De Beers Group Managed Operations Managing Director Moses Madondo said the wage talks had been "very tough" as they took place during challenging market conditions for the global diamond industry.
"The agreement provides a measure of certainty to our employees for the next five years as we focus on ramping up the underground mine at Venetia," Madondo said.
De Beers and NUM, which represents more than 1,500 workers at the global diamond giant's South African operations, were negotiating the wage deal since March.
"The NUM members are very happy with the deal and have mandated us to sign the wage agreement," NUM's chief negotiator with De Beers, Masibulele Naki, said in a separate statement.
In September, NUM had threatened to go on strike at Venetia, saying wage talks had broken down.
Industrial action would have disrupted production at Venetia, where De Beers started production in July from its new $2.3 billion underground mine after ending 30-year open pit mining operations in December 2022.
The diamond industry is facing tough market conditions caused by weak demand amid global economic uncertainty.
($1 = 18.4743 rand)
(Reporting by Nelson Banya; editing by David Evans)
((Nelson.Banya@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Nov 2 (Reuters) - Anglo American Plc's AAL.L De Beers on Thursday signed a five-year wage deal with the National Union of Mineworkers (NUM) which represents workers at its South African diamond operations. The increase takes the minimum entry level basic wage to 17,630 rand ($954.30) per month, excluding allowances, De Beers said in a statement. De Beers and NUM, which represents more than 1,500 workers at the global diamond giant's South African operations, were negotiating the wage deal since March.
|
Nov 2 (Reuters) - Anglo American Plc's AAL.L De Beers on Thursday signed a five-year wage deal with the National Union of Mineworkers (NUM) which represents workers at its South African diamond operations. De Beers and NUM, which represents more than 1,500 workers at the global diamond giant's South African operations, were negotiating the wage deal since March. "The NUM members are very happy with the deal and have mandated us to sign the wage agreement," NUM's chief negotiator with De Beers, Masibulele Naki, said in a separate statement.
|
Nov 2 (Reuters) - Anglo American Plc's AAL.L De Beers on Thursday signed a five-year wage deal with the National Union of Mineworkers (NUM) which represents workers at its South African diamond operations. De Beers Group Managed Operations Managing Director Moses Madondo said the wage talks had been "very tough" as they took place during challenging market conditions for the global diamond industry. "The NUM members are very happy with the deal and have mandated us to sign the wage agreement," NUM's chief negotiator with De Beers, Masibulele Naki, said in a separate statement.
|
Nov 2 (Reuters) - Anglo American Plc's AAL.L De Beers on Thursday signed a five-year wage deal with the National Union of Mineworkers (NUM) which represents workers at its South African diamond operations. The agreement will see employees receiving a 7% increase in 2023, and 6% in the subsequent years until April 30 2028, De Beers said in a statement. De Beers and NUM, which represents more than 1,500 workers at the global diamond giant's South African operations, were negotiating the wage deal since March.
|
2125.0
|
2023-11-02 00:00:00 UTC
|
December 22nd Options Now Available For American Airlines Group (AAL)
|
AAL
|
https://www.nasdaq.com/articles/december-22nd-options-now-available-for-american-airlines-group-aal
|
nan
|
nan
|
Investors in American Airlines Group Inc (Symbol: AAL) saw new options begin trading today, for the December 22nd expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new December 22nd contracts and identified one put and one call contract of particular interest.
The put contract at the $10.00 strike price has a current bid of 21 cents. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $10.00, but will also collect the premium, putting the cost basis of the shares at $9.79 (before broker commissions). To an investor already interested in purchasing shares of AAL, that could represent an attractive alternative to paying $11.36/share today.
Because the $10.00 strike represents an approximate 12% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 2.10% return on the cash commitment, or 15.32% annualized — at Stock Options Channel we call this the YieldBoost.
Below is a chart showing the trailing twelve month trading history for American Airlines Group Inc, and highlighting in green where the $10.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $11.50 strike price has a current bid of 62 cents. If an investor was to purchase shares of AAL stock at the current price level of $11.36/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $11.50. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 6.69% if the stock gets called away at the December 22nd expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if AAL shares really soar, which is why looking at the trailing twelve month trading history for American Airlines Group Inc, as well as studying the business fundamentals becomes important. Below is a chart showing AAL's trailing twelve month trading history, with the $11.50 strike highlighted in red:
Considering the fact that the $11.50 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 49%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 5.46% boost of extra return to the investor, or 39.81% annualized, which we refer to as the YieldBoost.
The implied volatility in the call contract example above is 42%.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 251 trading day closing values as well as today's price of $11.36) to be 37%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Top YieldBoost Calls of the S&P 500 »
Also see:
Selling Calls For Income
Top Ten Hedge Funds Holding EEI
DRIV Historical Stock Prices
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Of course, a lot of upside could potentially be left on the table if AAL shares really soar, which is why looking at the trailing twelve month trading history for American Airlines Group Inc, as well as studying the business fundamentals becomes important. Below is a chart showing AAL's trailing twelve month trading history, with the $11.50 strike highlighted in red: Considering the fact that the $11.50 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in American Airlines Group Inc (Symbol: AAL) saw new options begin trading today, for the December 22nd expiration.
|
Below is a chart showing AAL's trailing twelve month trading history, with the $11.50 strike highlighted in red: Considering the fact that the $11.50 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in American Airlines Group Inc (Symbol: AAL) saw new options begin trading today, for the December 22nd expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new December 22nd contracts and identified one put and one call contract of particular interest.
|
Below is a chart showing AAL's trailing twelve month trading history, with the $11.50 strike highlighted in red: Considering the fact that the $11.50 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in American Airlines Group Inc (Symbol: AAL) saw new options begin trading today, for the December 22nd expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new December 22nd contracts and identified one put and one call contract of particular interest.
|
If an investor was to purchase shares of AAL stock at the current price level of $11.36/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $11.50. Below is a chart showing AAL's trailing twelve month trading history, with the $11.50 strike highlighted in red: Considering the fact that the $11.50 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in American Airlines Group Inc (Symbol: AAL) saw new options begin trading today, for the December 22nd expiration.
|
2126.0
|
2023-11-01 00:00:00 UTC
|
Spirit Airlines CEO defends JetBlue merger in US antitrust trial
|
AAL
|
https://www.nasdaq.com/articles/spirit-airlines-ceo-defends-jetblue-merger-in-us-antitrust-trial
|
nan
|
nan
|
By Nate Raymond
BOSTON, Nov 1 (Reuters) - The CEO of Spirit Airlines on Wednesday defended in court the planned $3.8 billion acquisition of his company by JetBlue Airways as a means to create a viable competitor to the four larger airlines that dominate the U.S. skies.
Ted Christie, Spirit's chief executive officer, during the second day of trial in the U.S. Department of Justice's lawsuit challenging the merger testified that his ultra-low-cost airline remained "relatively insignificant" despite years of growth.
From a witness stand in Boston federal court, Christie testified that Spirit had recognized since 2016 that it would need to combine with a rival if it was ever to effectively compete with the four large airlines that dominate 80% of the U.S. domestic market.
"What we're really trying to do its establish a fifth viable competitor," he said, in response to questions from a lawyer for Spirit, Jay Cohen.
He said Spirit, which has not turned a profit in three years, had just around 3% of the market and was facing "more effective" competition from those larger airlines - United Airlines, American Airlines, Delta Air Lines and Southwest Airlines - in the aftermath of the COVID-19 pandemic.
While a merger with JetBlue was not what Spirit originally pitched to shareholders last year - it had favored a since-scrapped combination with Frontier Group Holdings - Christie said combining with JetBlue was a far superior path to continuing as a stand-alone business.
Christie is the first witness in a trial before U.S. District Judge William Young in an antitrust lawsuit the Justice Department filed in March that argues a combined airline would harm discount consumers by increasing fares and reducing flight options.
The Justice Department, along with Democratic state attorneys general from six states and the District of Columbia, say passengers would suffer roughly $1 billion in net harm annually if the no-frills, low-cost Spirit is absorbed into JetBlue.
Christie testified that throughout the negotiations for the deal in 2022, Spirit had been concerned how regulators would view a merger with JetBlue, as the Justice Department had already sued JetBlue to challenge a planned Northeast partnership with American Airlines.
Another federal judge in Boston later found in May that alliance violated U.S. antitrust law. JetBlue subsequently decided to terminate the alliance.
Christie said ultimately JetBlue eased Spirit's concerns after agreeing to sell off Spirit's gates and slots at certain airports in New York City, Boston, Newark and Fort Lauderdale in hopes of easing antitrust regulators' concerns.
"These are valuable assets they've agreed to pledge," he said.
FOCUS-Travel boom not enough to drive profits at US budget airlines Frontier, Spirit
US seeks to block JetBlue's Spirit Airlines deal at trial
US senator wants JetBlue CEO to answer if Spirit deal will hike air fares
(Reporting by Nate Raymond in Boston, Editing by Alexia Garamfalvi and Nick Zieminski)
((Nate.Raymond@thomsonreuters.com and Twitter @nateraymond; 347-243-6917; Reuters Messaging: nate.raymond.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Ted Christie, Spirit's chief executive officer, during the second day of trial in the U.S. Department of Justice's lawsuit challenging the merger testified that his ultra-low-cost airline remained "relatively insignificant" despite years of growth. From a witness stand in Boston federal court, Christie testified that Spirit had recognized since 2016 that it would need to combine with a rival if it was ever to effectively compete with the four large airlines that dominate 80% of the U.S. domestic market. Christie is the first witness in a trial before U.S. District Judge William Young in an antitrust lawsuit the Justice Department filed in March that argues a combined airline would harm discount consumers by increasing fares and reducing flight options.
|
By Nate Raymond BOSTON, Nov 1 (Reuters) - The CEO of Spirit Airlines on Wednesday defended in court the planned $3.8 billion acquisition of his company by JetBlue Airways as a means to create a viable competitor to the four larger airlines that dominate the U.S. skies. Christie testified that throughout the negotiations for the deal in 2022, Spirit had been concerned how regulators would view a merger with JetBlue, as the Justice Department had already sued JetBlue to challenge a planned Northeast partnership with American Airlines. FOCUS-Travel boom not enough to drive profits at US budget airlines Frontier, Spirit US seeks to block JetBlue's Spirit Airlines deal at trial US senator wants JetBlue CEO to answer if Spirit deal will hike air fares (Reporting by Nate Raymond in Boston, Editing by Alexia Garamfalvi and Nick Zieminski) ((Nate.Raymond@thomsonreuters.com and Twitter @nateraymond; 347-243-6917; Reuters Messaging: nate.raymond.thomsonreuters.com@reuters.net)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Christie testified that throughout the negotiations for the deal in 2022, Spirit had been concerned how regulators would view a merger with JetBlue, as the Justice Department had already sued JetBlue to challenge a planned Northeast partnership with American Airlines. Christie said ultimately JetBlue eased Spirit's concerns after agreeing to sell off Spirit's gates and slots at certain airports in New York City, Boston, Newark and Fort Lauderdale in hopes of easing antitrust regulators' concerns. FOCUS-Travel boom not enough to drive profits at US budget airlines Frontier, Spirit US seeks to block JetBlue's Spirit Airlines deal at trial US senator wants JetBlue CEO to answer if Spirit deal will hike air fares (Reporting by Nate Raymond in Boston, Editing by Alexia Garamfalvi and Nick Zieminski) ((Nate.Raymond@thomsonreuters.com and Twitter @nateraymond; 347-243-6917; Reuters Messaging: nate.raymond.thomsonreuters.com@reuters.net)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
By Nate Raymond BOSTON, Nov 1 (Reuters) - The CEO of Spirit Airlines on Wednesday defended in court the planned $3.8 billion acquisition of his company by JetBlue Airways as a means to create a viable competitor to the four larger airlines that dominate the U.S. skies. Christie is the first witness in a trial before U.S. District Judge William Young in an antitrust lawsuit the Justice Department filed in March that argues a combined airline would harm discount consumers by increasing fares and reducing flight options. Christie testified that throughout the negotiations for the deal in 2022, Spirit had been concerned how regulators would view a merger with JetBlue, as the Justice Department had already sued JetBlue to challenge a planned Northeast partnership with American Airlines.
|
2127.0
|
2023-11-01 00:00:00 UTC
|
JetBlue's (JBLU) Q3 Loss Wider Than Expected, Q4 View Weak
|
AAL
|
https://www.nasdaq.com/articles/jetblues-jblu-q3-loss-wider-than-expected-q4-view-weak
|
nan
|
nan
|
JetBlue Airways JBLU third-quarter 2023 loss (excluding 7 cents from non-recurring items) of 39 cents per share was wider than the Zacks Consensus Estimate of a loss of 27 cents. In the year-ago quarter, JBLU had reported earnings of 21 cents. Headwinds like weather-related constraints and high fuel prices hurt results.
Operating revenues of $2,353 million missed the Zacks Consensus Estimate of $2,379 million. Moreover, the top line decreased 8.16% year over year.
Passenger revenues, accounting for the bulk of the top line (93.5%), declined to $2,201 million from $2,415 million a year ago. Passenger revenues were hurt due to air traffic control issues in the Northeast. The metric fell short of our projection of $2,250.3 million. Other revenues rose 3.1% to $152 million.
Other Q3 Details
All comparisons are presented on a year-over-year basis, unless mentioned otherwise.
Revenue per available seat mile (RASM: a key measure of unit revenues) declined 14.2% to 13.55 cents. Passenger revenue per available seat mile plunged 14.9% to 12.68 cents. Average fare at JetBlue decreased 12.3% to $201.73. Yield per passenger mile dipped 13.9% to 14.89 cents, which fell short of our estimate of 15.76 cents.
Consolidated traffic (measured in revenue passenger miles) improved 5.8%. To cater to this increased demand, capacity (measured in available seat miles) rose 7.1% to 17,362 million. Consolidated load factor (percentage of seats filled by passengers) contracted 100 basis points to 85.1% as traffic growth was outpaced by capacity expansion. The actual value outperformed our projection of 83.4%.
Total operating costs (on a reported basis) increased 3.5% to $2,509 million, mainly due to a 17% gain in expenses on salaries, wages and benefits. Average fuel price per gallon (including related taxes) was $2.94, up 11.8% sequentially, highlighting a rise in oil price. JBLU’s operating expenses per available seat mile (CASM) fell 3.3% year over year. Excluding fuel, CASM improved 5.9% to 10.27 cents.
JetBlue, currently carrying a Zacks Rank #3 (Hold), exited the quarter with cash and cash equivalents of $973 million compared with $1,042 million at the end of 2022. Total debt at the end of the September quarter was $4,001 million compared with $3,647 million at 2022 end. So far this year, JBLU has paid off $254 million of debt and finance lease obligations. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Bleak Outlook
While providing guidance for fourth-quarter 2023, management stated that all comparisons are made with respect to fourth-quarter 2022 figures.
Capacity is anticipated to jump in the 0.5-3.5% band. CASM, excluding fuel and special items, is predicted to climb 8.5-10.5%. Capital expenditures are expected to be roughly $400 million.
Total revenues are forecast to tumble in the range of 6.5-10.5%. Average fuel cost per gallon is estimated to be between $3.05 and $3.20. Interest expense is predicted in the $60-$70 million band.
Management expects loss per share in the band of 35-55 cents. The Zacks Consensus Estimate is currently pegged at a loss of 27 cents.
For full-year 2023, capacity is envisioned to grow in the band of 5-7% from 2022 actuals. CASM, excluding fuel and special items, is predicted to rise 4.5-5.5% from 2022 figures. Current-year interest expense is forecast in the $205-$215 million band.
Total revenues for 2023 are anticipated to register year-over-year increase of 3-5%. Capital expenditures are expected to be roughly $1.2 billion in the current year. Share count for the current year is suggested to be 333 million.
Management now projects to incur a loss per share in the range of 45-65 cents (earlier guidance was for earnings in the 5-40 cents band) in 2023. The Zacks Consensus Estimate is currently pegged at a loss of 26 cents.
A Sneak Peek Into Other Notable Airlines’ Results
United Airlines UAL reported third-quarter 2023 earnings per share (excluding 23 cents from non-recurring items) of $3.65, which outpaced the Zacks Consensus Estimate of $3.40 and improved 29.9% year over year.
Operating revenues of $14,484 million beat the Zacks Consensus Estimate of $14,441.8 million. The top line increased 12.5% year over year due to upbeat air-travel demand. This was driven by a 14.6% rise in passenger revenues (accounting for 92.5% of the top line) to $13,349 million.
American Airlines AAL third-quarter 2023 earnings (excluding $1.21 from non-recurring items) of 38 cents per share easily beat the Zacks Consensus Estimate of 26 cents. Operating revenues of $13,482 million increased marginally year over year. The top line missed the Zacks Consensus Estimate of $13,518.7 million. Passenger revenues, accounting for 92.1% of the top line, climbed to $12,421 million from $12,396 million a year ago.
Total operating costs (on a reported basis) increased 9.4% year over year to $13,705 million, with expenses on salaries, wages and benefits rising to $3,974 million from $3,384 million in the previous year. Average fuel price per gallon (including related taxes) tumbled to $2.91 from $3.73 in the prior year. Consolidated operating costs per available seat mile (excluding fuel and special items) expanded 3.3% to 13.02 cents.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.3% per year. So be sure to give these hand-picked 7 your immediate attention.
See them now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
United Airlines Holdings Inc (UAL) : Free Stock Analysis Report
JetBlue Airways Corporation (JBLU) : Free Stock Analysis Report
American Airlines Group Inc. (AAL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
American Airlines AAL third-quarter 2023 earnings (excluding $1.21 from non-recurring items) of 38 cents per share easily beat the Zacks Consensus Estimate of 26 cents. Click to get this free report United Airlines Holdings Inc (UAL) : Free Stock Analysis Report JetBlue Airways Corporation (JBLU) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. Consolidated load factor (percentage of seats filled by passengers) contracted 100 basis points to 85.1% as traffic growth was outpaced by capacity expansion.
|
American Airlines AAL third-quarter 2023 earnings (excluding $1.21 from non-recurring items) of 38 cents per share easily beat the Zacks Consensus Estimate of 26 cents. Click to get this free report United Airlines Holdings Inc (UAL) : Free Stock Analysis Report JetBlue Airways Corporation (JBLU) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. A Sneak Peek Into Other Notable Airlines’ Results United Airlines UAL reported third-quarter 2023 earnings per share (excluding 23 cents from non-recurring items) of $3.65, which outpaced the Zacks Consensus Estimate of $3.40 and improved 29.9% year over year.
|
American Airlines AAL third-quarter 2023 earnings (excluding $1.21 from non-recurring items) of 38 cents per share easily beat the Zacks Consensus Estimate of 26 cents. Click to get this free report United Airlines Holdings Inc (UAL) : Free Stock Analysis Report JetBlue Airways Corporation (JBLU) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. JetBlue Airways JBLU third-quarter 2023 loss (excluding 7 cents from non-recurring items) of 39 cents per share was wider than the Zacks Consensus Estimate of a loss of 27 cents.
|
American Airlines AAL third-quarter 2023 earnings (excluding $1.21 from non-recurring items) of 38 cents per share easily beat the Zacks Consensus Estimate of 26 cents. Click to get this free report United Airlines Holdings Inc (UAL) : Free Stock Analysis Report JetBlue Airways Corporation (JBLU) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. JBLU’s operating expenses per available seat mile (CASM) fell 3.3% year over year.
|
2128.0
|
2023-10-31 00:00:00 UTC
|
Botswana's Debswana rough diamond sales down 21% on weak demand
|
AAL
|
https://www.nasdaq.com/articles/botswanas-debswana-rough-diamond-sales-down-21-on-weak-demand
|
nan
|
nan
|
GABORONE, Oct 31 (Reuters) - Sales of rough diamonds at Debswana Diamond Company fell 21% in the nine months up to September, Botswana's central bank data on Tuesday showed, as demand for gems slowed amid global economic uncertainty.
Debswana, equally owned by Botswana and Anglo American Plc's AAL.L De Beers, sells 75% of its output to De Beers while the balance is taken up by state-owned Okavango Diamond Company (ODC).
Botswana and De Beers in June agreed a new ten-year diamond sales agreement, which will raise ODC's share of Debswana output to 30% before it goes up to 40% in five years and eventually 50% by the end of the new contract.
But both ODC and De Beers have experienced lower demand with the state-owned company cancelling its November auction while the Anglo unit has allowed its contracted buyers to defer up to 100% of their contracted purchases for the remainder of 2023.
In the nine months up to September, Debswana sold diamonds worth $2.811 billion, down 21.4% from $3.578 billion sold in the same period last year. In pula terms, the decline in sales was lower at 14.3% to 37.055 billion pula ($2.72 billion), reflecting a stronger U.S. dollar in the period.
While Debswana sales have been affected by weak global consumer demand, the company has not cut back production, with figures released by Anglo American last week showing the joint venture’s output edged up 1% in the nine months, to 18.5 million carats compared to same period last year.
Analysts at research firm Econsult said expanding production during a period of weak consumer demand will not be sustainable.
“It will not be possible to continue expanding mining with sales contracting, as the required stockpiling becomes increasingly expensive,” the research firm said in an Oct.31 note.
($1 = 13.6426 pulas)
(Reporting by Brian Benza; Editing by Nelson Banya and Josie Kao)
((Nelson.Banya@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Debswana, equally owned by Botswana and Anglo American Plc's AAL.L De Beers, sells 75% of its output to De Beers while the balance is taken up by state-owned Okavango Diamond Company (ODC). Botswana and De Beers in June agreed a new ten-year diamond sales agreement, which will raise ODC's share of Debswana output to 30% before it goes up to 40% in five years and eventually 50% by the end of the new contract. While Debswana sales have been affected by weak global consumer demand, the company has not cut back production, with figures released by Anglo American last week showing the joint venture’s output edged up 1% in the nine months, to 18.5 million carats compared to same period last year.
|
Debswana, equally owned by Botswana and Anglo American Plc's AAL.L De Beers, sells 75% of its output to De Beers while the balance is taken up by state-owned Okavango Diamond Company (ODC). In the nine months up to September, Debswana sold diamonds worth $2.811 billion, down 21.4% from $3.578 billion sold in the same period last year. Analysts at research firm Econsult said expanding production during a period of weak consumer demand will not be sustainable.
|
Debswana, equally owned by Botswana and Anglo American Plc's AAL.L De Beers, sells 75% of its output to De Beers while the balance is taken up by state-owned Okavango Diamond Company (ODC). GABORONE, Oct 31 (Reuters) - Sales of rough diamonds at Debswana Diamond Company fell 21% in the nine months up to September, Botswana's central bank data on Tuesday showed, as demand for gems slowed amid global economic uncertainty. While Debswana sales have been affected by weak global consumer demand, the company has not cut back production, with figures released by Anglo American last week showing the joint venture’s output edged up 1% in the nine months, to 18.5 million carats compared to same period last year.
|
Debswana, equally owned by Botswana and Anglo American Plc's AAL.L De Beers, sells 75% of its output to De Beers while the balance is taken up by state-owned Okavango Diamond Company (ODC). In pula terms, the decline in sales was lower at 14.3% to 37.055 billion pula ($2.72 billion), reflecting a stronger U.S. dollar in the period. While Debswana sales have been affected by weak global consumer demand, the company has not cut back production, with figures released by Anglo American last week showing the joint venture’s output edged up 1% in the nine months, to 18.5 million carats compared to same period last year.
|
2129.0
|
2023-10-31 00:00:00 UTC
|
US seeks to block JetBlue's Spirit Airlines deal at trial
|
AAL
|
https://www.nasdaq.com/articles/us-seeks-to-block-jetblues-spirit-airlines-deal-at-trial
|
nan
|
nan
|
By Nate Raymond
BOSTON, Oct 31 (Reuters) - A U.S. Department of Justice lawyer on Tuesday urged a federal judge to block JetBlue Airways' JBLU.O planned $3.8 billion acquisition of ultra-low-cost carrier Spirit Airlines at the start of closely-watched antitrust trial.
The case in federal court in Boston is part of a broad effort by President Joe Biden's administration to preserve competition among the lowest cost airlines, ensuring air travel remains affordable for many more US consumers.
Justice Department attorney Arianna Markel in her opening statement told U.S. U.S. District Judge William Young that the deal would lead to fewer flights and seats and higher prices.
She said a JetBlue internal analysis projected its fares would increase 30% once Spirit, which competes with JetBlue on around 100 routes nationally, is not a competitor. Passengers would suffer roughly $1 billion in net harm annually, she said.
"JetBlue is counting on the fact that eliminating Spirit and the competition Spirit provides will allow JetBlue to raise fares," Markel said. "That is real harm to real people."
A merger between JetBlue and Spirit, the sixth and seventh largest U.S. carriers, respectively, would mark the first major U.S. airline combination since Alaska Airlines bought Virgin America in 2016.
The sector is dominated by four U.S. carriers - United Airlines, American Airlines, Delta Air Lines and Southwest - who control 80% of the domestic market following a series of previous airline mergers, the Justice Department has said.
JetBlue has called the deal pro-consumer and has sought to ease U.S. regulators' antitrust concerns by agreeing to sell off Spirit's gates and slots at certain airports in New York City, Boston, Newark and Fort Lauderdale.
But the Justice Department has said those divestitures are not enough, and in a lawsuit filed in March argued the combined airline would harm consumers by increasing fares and reducing choice on routes nationwide.
The department is suing alongside Democratic attorneys general from six states and the District of Columbia. They call Spirit a "disruptive and innovative airline" whose low-cost, no-frills model has forced price cuts industry-wide.
Lawyers for the airlines will deliver their own opening statements later on Tuesday. They argue that allowing the deal to go forward would strengthen JetBlue's own long-standing reputation as a market disruptor.
While JetBlue would become the nation's fifth-largest airline, its lawyers say it would still only have less than 10% market share domestically.
The department's case is part of a broader push by the Biden administration to aggressively step up antitrust enforcement, an initiative that has had mixedresults in court.
JetBlue was already the focus of one of its earlier cases, with a different Boston judge, Leo Sorokin, in May siding with the government in finding that JetBlue's U.S. Northeast partnership with American Airlines violated antitrust law.
JetBlue subsequently decided to terminate the alliance. American Airlines is appealing Sorokin's decision.
FOCUS-Travel boom not enough to drive profits at US budget airlines Frontier, Spirit
U.S. rejects JetBlue, Spirit exemption request, citing lawsuit
US senator wants JetBlue CEO to answer if Spirit deal will hike air fares
JetBlue agrees to sell Spirit assets in Boston, Newark to Allegiant
(Reporting by Nate Raymond in Boston, Editing by Alexia Garamfalvi and Nick Zieminski)
((Nate.Raymond@thomsonreuters.com and Twitter @nateraymond; 347-243-6917; Reuters Messaging: nate.raymond.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
By Nate Raymond BOSTON, Oct 31 (Reuters) - A U.S. Department of Justice lawyer on Tuesday urged a federal judge to block JetBlue Airways' JBLU.O planned $3.8 billion acquisition of ultra-low-cost carrier Spirit Airlines at the start of closely-watched antitrust trial. The case in federal court in Boston is part of a broad effort by President Joe Biden's administration to preserve competition among the lowest cost airlines, ensuring air travel remains affordable for many more US consumers. JetBlue has called the deal pro-consumer and has sought to ease U.S. regulators' antitrust concerns by agreeing to sell off Spirit's gates and slots at certain airports in New York City, Boston, Newark and Fort Lauderdale.
|
By Nate Raymond BOSTON, Oct 31 (Reuters) - A U.S. Department of Justice lawyer on Tuesday urged a federal judge to block JetBlue Airways' JBLU.O planned $3.8 billion acquisition of ultra-low-cost carrier Spirit Airlines at the start of closely-watched antitrust trial. Justice Department attorney Arianna Markel in her opening statement told U.S. U.S. District Judge William Young that the deal would lead to fewer flights and seats and higher prices. FOCUS-Travel boom not enough to drive profits at US budget airlines Frontier, Spirit U.S. rejects JetBlue, Spirit exemption request, citing lawsuit US senator wants JetBlue CEO to answer if Spirit deal will hike air fares JetBlue agrees to sell Spirit assets in Boston, Newark to Allegiant (Reporting by Nate Raymond in Boston, Editing by Alexia Garamfalvi and Nick Zieminski) ((Nate.Raymond@thomsonreuters.com and Twitter @nateraymond; 347-243-6917; Reuters Messaging: nate.raymond.thomsonreuters.com@reuters.net)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
By Nate Raymond BOSTON, Oct 31 (Reuters) - A U.S. Department of Justice lawyer on Tuesday urged a federal judge to block JetBlue Airways' JBLU.O planned $3.8 billion acquisition of ultra-low-cost carrier Spirit Airlines at the start of closely-watched antitrust trial. The sector is dominated by four U.S. carriers - United Airlines, American Airlines, Delta Air Lines and Southwest - who control 80% of the domestic market following a series of previous airline mergers, the Justice Department has said. FOCUS-Travel boom not enough to drive profits at US budget airlines Frontier, Spirit U.S. rejects JetBlue, Spirit exemption request, citing lawsuit US senator wants JetBlue CEO to answer if Spirit deal will hike air fares JetBlue agrees to sell Spirit assets in Boston, Newark to Allegiant (Reporting by Nate Raymond in Boston, Editing by Alexia Garamfalvi and Nick Zieminski) ((Nate.Raymond@thomsonreuters.com and Twitter @nateraymond; 347-243-6917; Reuters Messaging: nate.raymond.thomsonreuters.com@reuters.net)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
She said a JetBlue internal analysis projected its fares would increase 30% once Spirit, which competes with JetBlue on around 100 routes nationally, is not a competitor. The sector is dominated by four U.S. carriers - United Airlines, American Airlines, Delta Air Lines and Southwest - who control 80% of the domestic market following a series of previous airline mergers, the Justice Department has said. FOCUS-Travel boom not enough to drive profits at US budget airlines Frontier, Spirit U.S. rejects JetBlue, Spirit exemption request, citing lawsuit US senator wants JetBlue CEO to answer if Spirit deal will hike air fares JetBlue agrees to sell Spirit assets in Boston, Newark to Allegiant (Reporting by Nate Raymond in Boston, Editing by Alexia Garamfalvi and Nick Zieminski) ((Nate.Raymond@thomsonreuters.com and Twitter @nateraymond; 347-243-6917; Reuters Messaging: nate.raymond.thomsonreuters.com@reuters.net)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
2130.0
|
2023-10-31 00:00:00 UTC
|
Sabre (SABR) & Air India Extend Deal in Indian Domestic Market
|
AAL
|
https://www.nasdaq.com/articles/sabre-sabr-air-india-extend-deal-in-indian-domestic-market
|
nan
|
nan
|
Sabre Corporation SABR and Air India recently strengthened the partnership through an extended distribution agreement, which is based on their initial collaboration announced in April 2023.
Under the original April 2023 arrangement, the two companies established a fresh deal for the distribution of Air India's content to global travel buyers through Sabre Marketplace. The initial pact provided the opening of Air India's domestic and international flight options to travel agencies operating outside of India. It also enabled India’s domestic travel agencies to access international plans and fares.
The recently extended plan will now allow India’s domestic travel agencies to access the airline's domestic content through the Sabre Global Distribution System (GDS) from Jan 1, 2024.
Sabre Corporation Price and Consensus
Sabre Corporation price-consensus-chart | Sabre Corporation Quote
The fresh agreement, in addition to broadening the range of available fares and seats, will also strengthen Air India's future capacity to globally distribute New Distribution Capability (NDC) content through SABR's travel marketplace.
This strengthened partnership represents a significant growth opportunity for Sabre in the rapidly expanding Indian travel industry. Per a Statista report, Air India secured the third spot in the Indian domestic market for fiscal 2022, accounting for 9.7% of the total passengers transported, closely trailing behind Indigo and Spicejet. Once the ongoing merger between Vistara and Air India is finalized, the latter will claim the position of the second-largest fleet owner following IndiGo.
Sabre Benefits From Its Increasing Partnerships
For Sabre, this extended partnership with Air India will strengthen its portfolio, which also includes SABR’s collaboration with other airlines worldwide to offer the NDC content in the market. This list of airlines includes LATAM, Aeromexico, Scandinavian Airlines, Finnair, United Airlines UAL and American Airlines AAL. All of these companies have partnered or renewed the partnership with Sabre in 2023.
In March 2023, the company announced that Sabre-connected travel buyers, agencies and developer partners will be able to access American Airlines’ NDC content through Sabre Red 360, Sabre APIs and GetThere. The new partnership allowed travel buyers on Sabre’s GDS to access AAL’s offers, including Main Select and Flagship Business Plus fares.
In April 2023, United Airlines introduced its NDC offers in Sabre’s GDS. This enabled travel buyers to access enhanced options, including UAL's continuous pricing content, featuring the most competitive fares available through Sabre Red 360, Sabre APIs and GetThere.
SABR has reported that in second-quarter 2023, shares of its Global Distribution System industry volumes have improved in comparison to the second quarter of 2022 as well as 2019, which is the year before the pandemic-led lockdowns disrupted the entire global travel and hospitality business. The Travel Solution revenues increased to $670.8 million in second-quarter 2023 compared with $599.1 million in the year-ago quarter, reflecting year-over-year growth of 12%.
Zacks Rank
Currently, Sabre sports a Zacks Rank #1 (Strong Buy), while American Airlines and United Airlines carry a Zacks Rank #3 (Hold) each. Shares of SABR, AAL and UAL have declined 44.2%, 12.1 and 7.7%, respectively, in the year-to-date period.
Another Stock to Consider
Another top-ranked stock from the broader technology sector worth considering is NVIDIA NVDA, flaunting a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for NVIDIA's third-quarter fiscal 2024 earnings has been revised upward by 2 cents to $3.34 per share in the past 30 days. For fiscal 2024, earnings estimates have increased by 7 cents to $10.74 per share in the past 30 days.
NVIDIA’s earnings beat the Zacks Consensus Estimate thrice in the preceding four quarters while missing on one occasion, the average surprise being 9.8%. Shares of NVDA have rallied 181.7% year to date.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2023. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
United Airlines Holdings Inc (UAL) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
American Airlines Group Inc. (AAL) : Free Stock Analysis Report
Sabre Corporation (SABR) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
The new partnership allowed travel buyers on Sabre’s GDS to access AAL’s offers, including Main Select and Flagship Business Plus fares. This list of airlines includes LATAM, Aeromexico, Scandinavian Airlines, Finnair, United Airlines UAL and American Airlines AAL. Shares of SABR, AAL and UAL have declined 44.2%, 12.1 and 7.7%, respectively, in the year-to-date period.
|
Click to get this free report United Airlines Holdings Inc (UAL) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Sabre Corporation (SABR) : Free Stock Analysis Report To read this article on Zacks.com click here. This list of airlines includes LATAM, Aeromexico, Scandinavian Airlines, Finnair, United Airlines UAL and American Airlines AAL. The new partnership allowed travel buyers on Sabre’s GDS to access AAL’s offers, including Main Select and Flagship Business Plus fares.
|
Click to get this free report United Airlines Holdings Inc (UAL) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Sabre Corporation (SABR) : Free Stock Analysis Report To read this article on Zacks.com click here. This list of airlines includes LATAM, Aeromexico, Scandinavian Airlines, Finnair, United Airlines UAL and American Airlines AAL. The new partnership allowed travel buyers on Sabre’s GDS to access AAL’s offers, including Main Select and Flagship Business Plus fares.
|
This list of airlines includes LATAM, Aeromexico, Scandinavian Airlines, Finnair, United Airlines UAL and American Airlines AAL. The new partnership allowed travel buyers on Sabre’s GDS to access AAL’s offers, including Main Select and Flagship Business Plus fares. Shares of SABR, AAL and UAL have declined 44.2%, 12.1 and 7.7%, respectively, in the year-to-date period.
|
2131.0
|
2023-10-30 00:00:00 UTC
|
Senators ask US regulators to address airline frequent flyer programs
|
AAL
|
https://www.nasdaq.com/articles/senators-ask-us-regulators-to-address-airline-frequent-flyer-programs
|
nan
|
nan
|
WASHINGTON, Oct 30 (Reuters) - Two U.S. senators on Monday asked the Transportation Department and Consumer Financial Protection Bureau about "troubling reports" of unfair and deceptive practices in airlines’ frequent flyer and loyalty programs.
Senator Dick Durbin, a Democrat, and Republican Roger Marshall cited reports "airlines are changing point systems in ways that are unfair to consumers, including by devaluing points, meaning it takes more points than initially marketed to achieve the promised rewards."
Durbin, who chairs the Judiciary Committee, earlier this month asked the CEOs of United Airlines UAL.O and American Airlines AAL.O to answer questions on rising passenger complaints and higher ticket prices and fees.
(Reporting by David Shepardson Editing by Chris Reese)
((David.Shepardson@thomsonreuters.com; 2028988324;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Durbin, who chairs the Judiciary Committee, earlier this month asked the CEOs of United Airlines UAL.O and American Airlines AAL.O to answer questions on rising passenger complaints and higher ticket prices and fees. WASHINGTON, Oct 30 (Reuters) - Two U.S. senators on Monday asked the Transportation Department and Consumer Financial Protection Bureau about "troubling reports" of unfair and deceptive practices in airlines’ frequent flyer and loyalty programs. Senator Dick Durbin, a Democrat, and Republican Roger Marshall cited reports "airlines are changing point systems in ways that are unfair to consumers, including by devaluing points, meaning it takes more points than initially marketed to achieve the promised rewards."
|
Durbin, who chairs the Judiciary Committee, earlier this month asked the CEOs of United Airlines UAL.O and American Airlines AAL.O to answer questions on rising passenger complaints and higher ticket prices and fees. WASHINGTON, Oct 30 (Reuters) - Two U.S. senators on Monday asked the Transportation Department and Consumer Financial Protection Bureau about "troubling reports" of unfair and deceptive practices in airlines’ frequent flyer and loyalty programs. Senator Dick Durbin, a Democrat, and Republican Roger Marshall cited reports "airlines are changing point systems in ways that are unfair to consumers, including by devaluing points, meaning it takes more points than initially marketed to achieve the promised rewards."
|
Durbin, who chairs the Judiciary Committee, earlier this month asked the CEOs of United Airlines UAL.O and American Airlines AAL.O to answer questions on rising passenger complaints and higher ticket prices and fees. WASHINGTON, Oct 30 (Reuters) - Two U.S. senators on Monday asked the Transportation Department and Consumer Financial Protection Bureau about "troubling reports" of unfair and deceptive practices in airlines’ frequent flyer and loyalty programs. Senator Dick Durbin, a Democrat, and Republican Roger Marshall cited reports "airlines are changing point systems in ways that are unfair to consumers, including by devaluing points, meaning it takes more points than initially marketed to achieve the promised rewards."
|
Durbin, who chairs the Judiciary Committee, earlier this month asked the CEOs of United Airlines UAL.O and American Airlines AAL.O to answer questions on rising passenger complaints and higher ticket prices and fees. WASHINGTON, Oct 30 (Reuters) - Two U.S. senators on Monday asked the Transportation Department and Consumer Financial Protection Bureau about "troubling reports" of unfair and deceptive practices in airlines’ frequent flyer and loyalty programs. Senator Dick Durbin, a Democrat, and Republican Roger Marshall cited reports "airlines are changing point systems in ways that are unfair to consumers, including by devaluing points, meaning it takes more points than initially marketed to achieve the promised rewards."
|
2132.0
|
2023-10-30 00:00:00 UTC
|
FedEx pilots union picks interim leader after rejecting tentative deal
|
AAL
|
https://www.nasdaq.com/articles/fedex-pilots-union-picks-interim-leader-after-rejecting-tentative-deal
|
nan
|
nan
|
Adds details, comment from new chair in paragraphs 4-7
Oct 30 (Reuters) - The FedEx Master Executive Council, the governing body of the delivery firm's unit in the Air Line Pilots Association (ALPA), said on Monday it had elected a new interim chair after union members rejected a tentative contract with the company in July.
ALPA elected Billy Wilson last week to serve as interim chair through March 2025, replacing Chris Norman, who was instrumental in shaping the tentative agreement that union members voted down over pay and job security issues.
The union represents 6,000 pilots at FedEx FDX.N, which did not immediately respond to a request for comment.
"I am committed to bringing all of our pilots together as we reestablish negotiations," Wilson said in a statement.
Wilson called for compensation that is commensurate with pilots at other airlines, where commercial pilots have won significant raises, reflecting their bargaining power in an era of staff shortages.
Wilson said FedEx pilots transported vital goods when businesses shut down in the early days of the COVID pandemic.
"We paid a heavy price for this while the company made historic profits," he said, adding that quality of life, work rules and retirement are also key issues for ALPA members.
The tentative FedEx deal rejected by pilots included a 30% pay rise and a 30% increase to their legacy pensions.
American AirlinesAAL.O pilots, represented by the Allied Pilots Association (APA), in August ratified a deal that raises their compensation by more 46% over the four-year duration of their contract.
(Reporting by Priyamvada C in Bengaluru and Lisa Baertlein in Los Angeles; Editing by Devika Syamnath and Alexander Smith)
((lisa.baertlein@reuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
American AirlinesAAL.O pilots, represented by the Allied Pilots Association (APA), in August ratified a deal that raises their compensation by more 46% over the four-year duration of their contract. Adds details, comment from new chair in paragraphs 4-7 Oct 30 (Reuters) - The FedEx Master Executive Council, the governing body of the delivery firm's unit in the Air Line Pilots Association (ALPA), said on Monday it had elected a new interim chair after union members rejected a tentative contract with the company in July. ALPA elected Billy Wilson last week to serve as interim chair through March 2025, replacing Chris Norman, who was instrumental in shaping the tentative agreement that union members voted down over pay and job security issues.
|
American AirlinesAAL.O pilots, represented by the Allied Pilots Association (APA), in August ratified a deal that raises their compensation by more 46% over the four-year duration of their contract. Adds details, comment from new chair in paragraphs 4-7 Oct 30 (Reuters) - The FedEx Master Executive Council, the governing body of the delivery firm's unit in the Air Line Pilots Association (ALPA), said on Monday it had elected a new interim chair after union members rejected a tentative contract with the company in July. The union represents 6,000 pilots at FedEx FDX.N, which did not immediately respond to a request for comment.
|
American AirlinesAAL.O pilots, represented by the Allied Pilots Association (APA), in August ratified a deal that raises their compensation by more 46% over the four-year duration of their contract. Adds details, comment from new chair in paragraphs 4-7 Oct 30 (Reuters) - The FedEx Master Executive Council, the governing body of the delivery firm's unit in the Air Line Pilots Association (ALPA), said on Monday it had elected a new interim chair after union members rejected a tentative contract with the company in July. Wilson called for compensation that is commensurate with pilots at other airlines, where commercial pilots have won significant raises, reflecting their bargaining power in an era of staff shortages.
|
American AirlinesAAL.O pilots, represented by the Allied Pilots Association (APA), in August ratified a deal that raises their compensation by more 46% over the four-year duration of their contract. Adds details, comment from new chair in paragraphs 4-7 Oct 30 (Reuters) - The FedEx Master Executive Council, the governing body of the delivery firm's unit in the Air Line Pilots Association (ALPA), said on Monday it had elected a new interim chair after union members rejected a tentative contract with the company in July. "I am committed to bringing all of our pilots together as we reestablish negotiations," Wilson said in a statement.
|
2133.0
|
2023-10-30 00:00:00 UTC
|
G7 plan to ban Russian diamonds to further dim industry sparkle
|
AAL
|
https://www.nasdaq.com/articles/g7-plan-to-ban-russian-diamonds-to-further-dim-industry-sparkle
|
nan
|
nan
|
By Polina Devitt, Clara Denina and Mimosa Spencer
LONDON/PARIS, Oct 30 (Reuters) - The global diamond sector is scrambling to get ahead of an upcoming G7 ban on Russian gems, with consumers and producers battling to manage ever more complex supply chains against a backdrop of sluggish demand.
With direct sales of Russian gems already crushed by U.S. sanctions on Russia's state diamond miner Alrosa ALRS.MM, the G7 is now in the process of thrashing out details of a further ban on indirect sales in its member countries, expected by end-October.
But even before it is in force, producers say Western customers have been shunning gemstones from Russia, the world's biggest producer of rough diamonds by volume with 30% of the market.
Tiffany, part of French luxury group LVMH LVMH.PA, said in March last year it had stopped sourcing rough diamonds from Russia.
Labels of Swiss-based luxury group Richemont CFR.S, including Van Cleef & Arpels, went further, sending executives to visit suppliers in India and hiring an external auditor to look at gemstone flow in the supply chain.
The proposed G7 ban now risks further complicating supply chains, at a point when demand is already under heavy pressure.
With various proposals under consideration, the industry is currently debating how a diamond's country of origin should be checked, where it should be done, and what sizes of stones, rough or polished, should be part of the rule.
"It's all about the breadth and interconnection intricacies of the supply chain that makes this technically difficult," diamond analyst Paul Zimnisky said.
"The diamond trade spans many countries, with many different cultures, religions and levels of economic development."
Demand for diamond jewellery is already suffering in the U.S., home to 55% of global demand, due to high interest rates, a muted post-pandemic recovery in China, and competition from lab-grown diamonds.
India - cutter and polisher of 90% of the world's rough diamonds - last month asked global miners to stop selling it rough gems for two months to manage accumulated stocks. That means stocks at diamond miners will grow.
"At some point these stocks will have to come onto the market," Richard Chetwode, a diamond industry consultant said.
De Beers, the world's largest rough diamond producer by value, said in a recent report that while global diamond jewellery demand would hold above pre-pandemic levels in 2023, the economic landscape was difficult.
"Elevated inflation and higher interest rates continue to affect consumer confidence and discretionary spending in some of the major diamond consuming countries, including the U.S. and Europe," it said.
According to Richard Chetwode, "retail in China has been hit badly, and the U.S. retailers are already stocked to the gills ahead of the Christmas season".
"There are literally no buyers" of rough diamonds now, he said.
Global diamond production by company 2022 https://tmsnrt.rs/3tcQrVD
Global diamond market as of 2022 https://tmsnrt.rs/3ZJOv39
(Reporting by Polina Devitt, Clara Denina and Mimosa Spencer; editing by)
((polina.devitt@thomsonreuters.com; Reuters Messaging: polina.devitt.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
By Polina Devitt, Clara Denina and Mimosa Spencer LONDON/PARIS, Oct 30 (Reuters) - The global diamond sector is scrambling to get ahead of an upcoming G7 ban on Russian gems, with consumers and producers battling to manage ever more complex supply chains against a backdrop of sluggish demand. Labels of Swiss-based luxury group Richemont CFR.S, including Van Cleef & Arpels, went further, sending executives to visit suppliers in India and hiring an external auditor to look at gemstone flow in the supply chain. With various proposals under consideration, the industry is currently debating how a diamond's country of origin should be checked, where it should be done, and what sizes of stones, rough or polished, should be part of the rule.
|
By Polina Devitt, Clara Denina and Mimosa Spencer LONDON/PARIS, Oct 30 (Reuters) - The global diamond sector is scrambling to get ahead of an upcoming G7 ban on Russian gems, with consumers and producers battling to manage ever more complex supply chains against a backdrop of sluggish demand. India - cutter and polisher of 90% of the world's rough diamonds - last month asked global miners to stop selling it rough gems for two months to manage accumulated stocks. Global diamond production by company 2022 https://tmsnrt.rs/3tcQrVD Global diamond market as of 2022 https://tmsnrt.rs/3ZJOv39 (Reporting by Polina Devitt, Clara Denina and Mimosa Spencer; editing by) ((polina.devitt@thomsonreuters.com; Reuters Messaging: polina.devitt.thomsonreuters.com@reuters.net)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
By Polina Devitt, Clara Denina and Mimosa Spencer LONDON/PARIS, Oct 30 (Reuters) - The global diamond sector is scrambling to get ahead of an upcoming G7 ban on Russian gems, with consumers and producers battling to manage ever more complex supply chains against a backdrop of sluggish demand. De Beers, the world's largest rough diamond producer by value, said in a recent report that while global diamond jewellery demand would hold above pre-pandemic levels in 2023, the economic landscape was difficult. Global diamond production by company 2022 https://tmsnrt.rs/3tcQrVD Global diamond market as of 2022 https://tmsnrt.rs/3ZJOv39 (Reporting by Polina Devitt, Clara Denina and Mimosa Spencer; editing by) ((polina.devitt@thomsonreuters.com; Reuters Messaging: polina.devitt.thomsonreuters.com@reuters.net)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
By Polina Devitt, Clara Denina and Mimosa Spencer LONDON/PARIS, Oct 30 (Reuters) - The global diamond sector is scrambling to get ahead of an upcoming G7 ban on Russian gems, with consumers and producers battling to manage ever more complex supply chains against a backdrop of sluggish demand. "At some point these stocks will have to come onto the market," Richard Chetwode, a diamond industry consultant said. De Beers, the world's largest rough diamond producer by value, said in a recent report that while global diamond jewellery demand would hold above pre-pandemic levels in 2023, the economic landscape was difficult.
|
2134.0
|
2023-10-28 00:00:00 UTC
|
Is domestic travel back on track? Check out these companies
|
AAL
|
https://www.nasdaq.com/articles/is-domestic-travel-back-on-track-check-out-these-companies
|
nan
|
nan
|
The United States economy has achieved something most bears never expected: gross domestic product (GDP) expanded by 4.9% during the past quarter, whereas economists only expected a 4.7% jump. Even in real growth terms, considering inflation, things have improved past any point of concern.
Some analysts ask whether this growth will begin to trickle down into specific industries and consumer behavior, such as domestic travel trends. With a strong dollar, some Americans travel overseas, where budgets can significantly increase.
Regarding consumer discretionary stocks, two domestic names stand out, and analysts believe that the macro growth has a direct path to benefit them. Otherwise, a double-digit upside assigned to both would be unusual for Wall Street. Even in today's shifting trends, you can have a chance at beating the market this quarter.
A new beginning
Starting with what has grabbed the market's attention lately, earnings season, you will soon find out why Southwest Airlines (NYSE: LUV) and Royal Caribbean Cruises (NYSE: RCL) can bring your portfolio a feeling of summer while being smack in the middle of wintertime.
Interestingly, each stock's performance can tell you year-to-date, especially against the Consumer Discretionary Select Sector SPDR Fund (NYSEARCA: XLY). While Royal Caribbean has outperformed the sector by as much as 57.8%, Southwest has fallen far behind.
With an underperformance of 43.8% in the sector, it looks like flying domestically is less attractive than an exotic destination in one of Royal Caribbean's ships. This is somewhat understandable, as the rising oil prices have caused flight prices to increase, and Airbnb's wild-west pricing model is not enticing enough to book in the U.S.
Despite the difference in performance, the underlying opportunity remains the same. With both of these stocks reaching fresh 52-week lows, the opening for a gap rebound is what you should be looking for, despite what bears may warn you about.
MarketBeat has an excellent stock screening tool you can use to filter out for low price-to-earnings stocks, where names like Southwest and Royal Caribbean will appear as tremendously attractive, ones that analysts are reasonably bullish about.
The market has voted
Contrary to widespread value investment practice, you want to look for stocks valued above a sector average multiple, such as the forward P/E, where markets attempt to place a value on the next 12 months of earnings expectations.
In the case of airline stocks, you can see how and why Southwest is a clear winning outlier.
Where the sector carries an average forward P/E of 5.5x, Southwest stock comes in with an 8.5x valuation, and there's good reason for it. Your job is to reverse-engineer some reasons why the market may be willing to pay a premium above names like United Airlines (NASDAQ: UAL) and American Airlines (AAL).
United and American analysts expect earnings to decline by 2.5% and 5% for the next twelve months, respectively. This is way below the industry average of 12.3%, so they are trading at valuations below the industry, 3.2x and 4.1x for each.
Southwest projects a 49.4% jump in EPS for next year, above the industry average and more than enough justification for markets to pay a premium for this stock today. Analysts have placed a price target of $34.2 a share, implying a net upside of 46.2% from today's prices.
What about Royal Caribbean? While the universe of cruise line stocks is smaller, this stock is still a perceived winner.
With an average forward P/E of 8.2x, Royal Caribbean comes out ahead with its 10.0x valuation. The driver behind the preference? Analysts are pushing for EPS to advance by as much as 35.9% in the next 12 months, ahead of the industry's expected 15.5%.
These assumptions have allowed analysts to land on a consensus price target of $111.6 a share for this stock, calling for a tremendous 34.2% rally to meet these predictions.
Growing GDP can only mean a wave of confidence and spending sure to come. The markets have already picked their dream team lineup for domestic leisure.
The article "Is domestic travel back on track? Check out these companies" originally appeared on MarketBeat.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Your job is to reverse-engineer some reasons why the market may be willing to pay a premium above names like United Airlines (NASDAQ: UAL) and American Airlines (AAL). Regarding consumer discretionary stocks, two domestic names stand out, and analysts believe that the macro growth has a direct path to benefit them. Southwest projects a 49.4% jump in EPS for next year, above the industry average and more than enough justification for markets to pay a premium for this stock today.
|
Your job is to reverse-engineer some reasons why the market may be willing to pay a premium above names like United Airlines (NASDAQ: UAL) and American Airlines (AAL). A new beginning Starting with what has grabbed the market's attention lately, earnings season, you will soon find out why Southwest Airlines (NYSE: LUV) and Royal Caribbean Cruises (NYSE: RCL) can bring your portfolio a feeling of summer while being smack in the middle of wintertime. MarketBeat has an excellent stock screening tool you can use to filter out for low price-to-earnings stocks, where names like Southwest and Royal Caribbean will appear as tremendously attractive, ones that analysts are reasonably bullish about.
|
Your job is to reverse-engineer some reasons why the market may be willing to pay a premium above names like United Airlines (NASDAQ: UAL) and American Airlines (AAL). MarketBeat has an excellent stock screening tool you can use to filter out for low price-to-earnings stocks, where names like Southwest and Royal Caribbean will appear as tremendously attractive, ones that analysts are reasonably bullish about. The market has voted Contrary to widespread value investment practice, you want to look for stocks valued above a sector average multiple, such as the forward P/E, where markets attempt to place a value on the next 12 months of earnings expectations.
|
Your job is to reverse-engineer some reasons why the market may be willing to pay a premium above names like United Airlines (NASDAQ: UAL) and American Airlines (AAL). Some analysts ask whether this growth will begin to trickle down into specific industries and consumer behavior, such as domestic travel trends. MarketBeat has an excellent stock screening tool you can use to filter out for low price-to-earnings stocks, where names like Southwest and Royal Caribbean will appear as tremendously attractive, ones that analysts are reasonably bullish about.
|
2135.0
|
2023-10-26 00:00:00 UTC
|
7 Undervalued Stocks to Buy Before Everyone Else
|
AAL
|
https://www.nasdaq.com/articles/7-undervalued-stocks-to-buy-before-everyone-else
|
nan
|
nan
|
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Despite multiple macroeconomic issues in the past year, the market looks to finally be turning back up as 2024 nears. In 2022 and 2023, unexpected downturns from the bear market, threats of an impending recession, and inflationary pressure brought down hundreds of growing companies. Like any value investor learning from Warren Buffet, one of the most critical factors when evaluating a stock comes back to its intrinsic valuation. All investors should always be continually monitoring their investments, ensuring they are purchasing a company for less than what it is worth to get a great deal. With 2024 expected to be a much more optimistic year, in this article, we’ll highlight seven undervalued stocks that all investors should consider getting in early on.
Undervalued Stocks: RTX Corporation (RTX)
Source: JHVEPhoto / Shutterstock.com
RTX Corporation (NYSE:RTX) is a leading aerospace and defense company. Recently in 2023, RTX has suffered a large price decline, largely attributed to a combination of quality issues in its aircraft manufacturing business. Currently, its price sits at $73.13, with 21 Yahoo Finance analysts projecting an optimistic 1-year range between an average of $81.42 to a high of $103.73.
We support this optimistic sentiment and believe this is a perfect time for investors to add RTX at an undervalued price. With its buyback program and potential for increased defense spending due to escalating tensions in the Middle East and the continual fighting in Ukraine-Russia, we believe this company will be able to recover its slightly dampened FY estimates.
Taking a look at its financials, we see that RTX is undervalued at a P/E ratio of 14.54x, compared to its sector median of 16.02x. This valuation becomes even more attractive when looking at its historic one-year P/E mean of 27.09x. RTX’s Q2 2023 results were also optimistic, stabilizing and beating both EPS and revenue estimates. With news to also confirm their share buyback of $3B, investors should no doubt consider RTX as a discounted addition to their portfolio.
American Airlines Group Inc. (AAL)
Source: GagliardiPhotography / Shutterstock.com
American Airlines Group Inc. (NASDAQ:AAL) is one of the major players in the airline sector. It serves consumer and commercial clients through its vast route network, providing various travel and transportation services. The company is currently trading at $11.21, with Yahoo Finance analysts projecting a one-year price range of $8.00-$23.00, with an average target price of $15.14.
Airline stocks have been challenging for the past couple of years, mainly due to the COVID-19 pandemic and its subsequent repercussions. However, many airline companies are on an excellent pace to return to normal, pre-pandemic strength levels.
American Airlines presents an appealing investment opportunity with its P/E ratio of 2.91x, being significantly less than its industry peers average of 9.28x and its five-year historical average of 5.07x. The EPS of the company could also allow the company to be more attractive to several investors. It has a current EPS of 3.88. However, analysts from Yahoo Finance project the company to grow 368% during the current fiscal year and a growth estimate of 83.42% per annum over the next five years. With that in mind, we recommend American Airlines as among the top undervalued stocks with strong long-term potential.
Deutsche Bank Ag (DB)
Source: Martynova Anna / Shutterstock.com
Deutsche Bank Ag (NYSE:DB) is an influential figure in the banking and financial services industry as the largest bank in Germany. Yahoo Finance analysts estimate it will trade at an average one-year price of around $11.69.
The company’s financials clearly show growth at an efficient and sustainable rate. In the last 12 months, Deutsche Bank reported an impressive revenue of $28.2 billion, up ~22% from its revenue of $23 billion less than four years ago! EPS has also demonstrated consistent growth, increasing from -$2.71 at the close of 2019 to $2.42 as 2023 began.
When examining Deutsche Bank’s valuation, it is clear that the company is undervalued compared to the rest of the industry. Deutsche Bank’s P/E ratio currently stands at 4.19x, which, contrasted to the financial sector median P/E ratio of 7.91x, is almost 50% less than the industry average. Also, its P/S ratio of 0.73x TTM is a little less than 70% than that of the financial sector median, which stands at 2.15x.
With these stellar valuation ratios, DB further solidifies its place as an addition to any individual’s portfolio.
Delta Air Lines (DAL)
Source: Markus Mainka / Shutterstock.com
Delta Air Lines (NYSE:DAL) is a major presence in the airline industry as one of the largest and most influential carriers in the U.S. Yahoo Finance analysts estimate it will trade within a one-year price range of $43 – $77, averaging at around $53.94.
With Delta’s standing and weight in the transportation market, its low P/E and P/S ratios compared to the industry medians display it as likely being undervalued. While the industrial sector has a median P/E ratio TTM of 16.02x, Delta’s is 5.00x, a -69% difference from the sector. Similarly, for the P/S ratio, Delta’s is 0.36x TTM, while the sector’s is at 1.27x, meaning Delta’s P/S ratio was at a 72% decrease from the sector average.
Looking at its financials, we see that its revenue has increased around 20% in the last four years, from $47 million in 2019 to $55.7 million TTM. While COVID-19 played a large role in the company’s drop to an EPS of -$19.49 in 2020, it is Delta’s rise back to a value of $2.07 in 2022 that shows its adaptability and growth. Overall, Delta Airlines would be a great pick for anyone looking for undervalued stocks.
Clearfield, Inc (CLFD)
Source: Pavel Kapysh / Shutterstock.com
Clearfield (NASDAQ:CLFD) produces everything needed to conduct electricity efficiently, from resistors and inductors to their new fiber optics for wires. With more fiber technology being used in the future, Clearfield indeed has massive growth potential. In fact, four Yahoo Finance analysts predict the stock to trade with a range of $24 to $52 and an average of $45.
Clearfield’s newest product is the fiber optics cassette, which can single-handedly fix multiple wired connections and connect up to ten wires together, allowing for a considerable increase in productivity in the system. Integrating these innovative products into existing wired connections will increase the network speed significantly, giving them an edge over the competition.
Clearfield’s valuation is also relatively cheap, with a P/E ratio of 8.28x compared to the industry’s 14.78x and its five-year average of 19.16x. Additionally, in the past two years alone, its EPS and profits have grown significantly, as EPS grew 141% and profits grew 81%. With a historically discounted P/E ratio, steady growth, and new, innovative products coming out, this undervalued stock will surely have some explosive growth soon.
Take-Two Interactive Software, Inc. (TTWO)
Source: rafapress / Shutterstock.com
Take-Two Interactive Software (NASDAQ:TTWO) is a leading developer, marketer, and publisher in the gaming industry. Yahoo Finance analysts estimate that this stock will trade within a one-year price range of $104-$171 with an average of $156.96. Its analyst estimate is 30% below its fair value estimate. That’s why we think it is one of the best-undervalued stocks.
Take-Two Interactive is the creator of the Grand Theft Auto series, the 2k games, and Red Dead Redemption, and is one of the biggest entertainment providers for consumers. Despite TTWO’s recent costly acquisition of Zynga, I believe this partnership with a provider of free-to-play games will lead to an overall net gain in the long term.
According to a Wall Street analyst, TTWO is expected to hit a price of US$157, putting it 30% below its fair value estimate. With a historically sufficient cash runaway and likely stabilization in 2024, I highly recommend TTWO to any investor looking for a massive return on their discounted investment.
Novartis AG (NVS)
Source: Denis Linine / Shutterstock.com
Novartis AG (NYSE:NVS) is a Swiss pharmaceutical manufacturer with a long history of innovative drugs. The share price is up over 28% in the last year and currently sits at $94.69. The stock has an average 1-year price target of $112.75, according to 4 Yahoo finance analysts.
Its breast cancer drug Kisqali was found to significantly cut the risk of recurrence and has been approved to treat hormone-driven breast cancer. With this new approval and success, it is likely to be a new drug, boosting its revenue in the future. In terms of valuation, its current P/E sits at 14.26x compared to the sector median of 17.16x, a staggering difference of over 16%. With EPS expected to grow at an average of just over 6% for the next few years, Novartis presents investors with a promising investment with plenty of upside. Thus, it is one of the best undervalued stocks, in our opinion.
On the date of publication, Ian Hartana and Vayun Chugh did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Chandler Capital is the work of Ian Hartana and Vayun Chugh. Ian Hartana and Vayun Chugh are both self-taught investors whose work has been featured in Seeking Alpha. Their research primarily revolves around GARP stocks with a long-term investment perspective encompassing diverse sectors such as technology, energy, and healthcare.
More From InvestorPlace
The #1 AI Investment Might Be This Company You’ve Never Heard Of
Musk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In.
The Rich Use This Income Secret (NOT Dividends) Far More Than Regular Investors
The post 7 Undervalued Stocks to Buy Before Everyone Else appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
American Airlines Group Inc. (AAL) Source: GagliardiPhotography / Shutterstock.com American Airlines Group Inc. (NASDAQ:AAL) is one of the major players in the airline sector. With its buyback program and potential for increased defense spending due to escalating tensions in the Middle East and the continual fighting in Ukraine-Russia, we believe this company will be able to recover its slightly dampened FY estimates. Take-Two Interactive is the creator of the Grand Theft Auto series, the 2k games, and Red Dead Redemption, and is one of the biggest entertainment providers for consumers.
|
American Airlines Group Inc. (AAL) Source: GagliardiPhotography / Shutterstock.com American Airlines Group Inc. (NASDAQ:AAL) is one of the major players in the airline sector. Undervalued Stocks: RTX Corporation (RTX) Source: JHVEPhoto / Shutterstock.com RTX Corporation (NYSE:RTX) is a leading aerospace and defense company. Deutsche Bank Ag (DB) Source: Martynova Anna / Shutterstock.com Deutsche Bank Ag (NYSE:DB) is an influential figure in the banking and financial services industry as the largest bank in Germany.
|
American Airlines Group Inc. (AAL) Source: GagliardiPhotography / Shutterstock.com American Airlines Group Inc. (NASDAQ:AAL) is one of the major players in the airline sector. Undervalued Stocks: RTX Corporation (RTX) Source: JHVEPhoto / Shutterstock.com RTX Corporation (NYSE:RTX) is a leading aerospace and defense company. The company is currently trading at $11.21, with Yahoo Finance analysts projecting a one-year price range of $8.00-$23.00, with an average target price of $15.14.
|
American Airlines Group Inc. (AAL) Source: GagliardiPhotography / Shutterstock.com American Airlines Group Inc. (NASDAQ:AAL) is one of the major players in the airline sector. The EPS of the company could also allow the company to be more attractive to several investors. Overall, Delta Airlines would be a great pick for anyone looking for undervalued stocks.
|
2136.0
|
2023-10-25 00:00:00 UTC
|
The 3 Most Undervalued Industrial Stocks to Buy: October 2023
|
AAL
|
https://www.nasdaq.com/articles/the-3-most-undervalued-industrial-stocks-to-buy%3A-october-2023
|
nan
|
nan
|
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Industrial companies are important for investors to add to their portfolios for a few reasons. Diversifying an investment portfolio is a good idea, especially in uncertain economic times. It is best to invest equally in multiple industries, not to spread yourself too thin and risk significant losses if one sector falters. Industrials are a part of our everyday lives, from manufacturing equipment to passenger airlines, helping the world around us operate. Buying undervalued industrial stocks is a good idea for multiple reasons.
Value investing is a great strategy for investors looking to maximize gains and minimize losses. Waiting to buy into a company once a downturn in its overall stock price takes place is a great way to grow your investment portfolio. It is best to understand why a particular company’s stock price is falling and if it is due to outside factors such as industry-wide struggles or whether it is an underlying issue with the company financials, leadership issues or any other factor that may be the reason the company is trading at such a discount.
Below, I discuss three different industrial stocks that, in my opinion, are undervalued due to factors such as lawsuits piling up and uncertainty around the airline industry. These companies have solid financials and offer investors who are looking for a buying opportunity for stocks trading at a discount. These are three undervalued stocks to buy.
3M (MMM)
Source: Ken Wolter / Shutterstock.com
Located in Saint Paul, Minnesota, 3M (NYSE:MMM) operates as an industrial conglomerate company. It provides equipment and services for a wide range of industries. These include industrial abrasive solutions for metalworking, reflective signage, infection-preventive equipment and filtration systems used in the transportation industry.
Over the past year, the stock price has fallen approximately 23% due to investors’ uncertainty surrounding recent lawsuits, most notably a $10 billion settlement with various public water systems in the U.S. due to the presence of hazardous chemicals in drinking water.
But with a positive earnings release on October 24 and raised future guidance, their stock price grew by 5%.
Delta Air Lines (DAL)
Source: Markus Mainka / Shutterstock.com
Headquartered in Atlanta, Georgia, Delta Air Lines (NASDAQ:DAL) is a passenger airline company that operates domestic and international flights. It also provides maintenance and repair solutions and has a fleet of over 1,200 different aircraft.
The company’s stock price has fallen in the last year by 4%. Competitors American Airlines (NASDAQ:AAL) dropped by 20%, and United Airlines (NASDAQ:UAL) fell by 16% in the same period.
Delta Air Lines recently reported third-quarter earnings results on October 12, stating an increase in total revenue of approximately 36% and net income by 59%, compared to the third quarter of 2022. It also took delivery of 10 different aircraft in this quarter alone and operated as the most on-time airline during the third quarter of 2023.
Rolls-Royce (RYCEY)
Source: Matheus Obst / Shutterstock.com
Rolls-Royce (OTC:RYCEY), located in London, United Kingdom, is an aerospace and defense company that manufactures and sells engines for use in commercial, business and military aircraft. They are also developing nuclear submarine plants and small reactor systems.
Rolls-Royce released its earnings report for half-year 2023 in August, stating a 31% increase in total revenue and operating profits that has grown five-fold compared to the half-year report for 2022. Its guidance was raised for the remainder of 2023. Rolls-Royce also experienced higher sales volume in their civil defense segment.
As of this writing, Noah Bolton did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Noah has about a year of freelance writing experience. He’s worked with Investopedia dealing with topics such as the stock market and financial news.
More From InvestorPlace
ChatGPT IPO Could Shock the World, Make This Move Before the Announcement
Musk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In.
The Rich Use This Income Secret (NOT Dividends) Far More Than Regular Investors
The post The 3 Most Undervalued Industrial Stocks to Buy: October 2023 appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Competitors American Airlines (NASDAQ:AAL) dropped by 20%, and United Airlines (NASDAQ:UAL) fell by 16% in the same period. Delta Air Lines recently reported third-quarter earnings results on October 12, stating an increase in total revenue of approximately 36% and net income by 59%, compared to the third quarter of 2022. More From InvestorPlace ChatGPT IPO Could Shock the World, Make This Move Before the Announcement Musk’s “Project Omega” May Be Set to Mint New Millionaires.
|
Competitors American Airlines (NASDAQ:AAL) dropped by 20%, and United Airlines (NASDAQ:UAL) fell by 16% in the same period. Over the past year, the stock price has fallen approximately 23% due to investors’ uncertainty surrounding recent lawsuits, most notably a $10 billion settlement with various public water systems in the U.S. due to the presence of hazardous chemicals in drinking water. Delta Air Lines (DAL) Source: Markus Mainka / Shutterstock.com Headquartered in Atlanta, Georgia, Delta Air Lines (NASDAQ:DAL) is a passenger airline company that operates domestic and international flights.
|
Competitors American Airlines (NASDAQ:AAL) dropped by 20%, and United Airlines (NASDAQ:UAL) fell by 16% in the same period. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Industrial companies are important for investors to add to their portfolios for a few reasons. It is best to understand why a particular company’s stock price is falling and if it is due to outside factors such as industry-wide struggles or whether it is an underlying issue with the company financials, leadership issues or any other factor that may be the reason the company is trading at such a discount.
|
Competitors American Airlines (NASDAQ:AAL) dropped by 20%, and United Airlines (NASDAQ:UAL) fell by 16% in the same period. Buying undervalued industrial stocks is a good idea for multiple reasons. Below, I discuss three different industrial stocks that, in my opinion, are undervalued due to factors such as lawsuits piling up and uncertainty around the airline industry.
|
2137.0
|
2023-10-25 00:00:00 UTC
|
Airlines Earnings Mixed-to-Upbeat: What Lies Ahead of ETF?
|
AAL
|
https://www.nasdaq.com/articles/airlines-earnings-mixed-to-upbeat%3A-what-lies-ahead-of-etf
|
nan
|
nan
|
It’s been less than two weeks since Delta Air Lines Inc. DAL kick started the third-quarter earnings season for the airline space. Overall, the season has been mixed for the industry. The sector still has to traverse a long way before it can reach the pre-pandemic level.
However, the pureplay airlines ETF U.S. Global Jets ETF JETS has lost 11.5% past month (as of Oct 24, 2022). In fact, the fund underperformed the S&P 500 (down 2.1%) in the past one-month period. This makes third-quarter airlines earnings more important this season as it could determine what lies ahead of the sector.
Let’s delve a little deeper.
Inside the Headlines
Delta Air Lines Inc. DAL reported third-quarter 2023 earnings (excluding 31 cents from non-recurring items) of $2.03 per share, which comfortably beat the Zacks Consensus Estimate of $1.92 and improved 35% on a year-over-year basis. Revenues of $15,488 million beat the Zacks Consensus Estimate of $15,290.4 million and increased 11% on a year-over-year basis, driven by higher air travel demand.
United Airlines’ UAL reported third-quarter 2023 earnings per share (excluding 23 cents from non-recurring items) of $3.65, which outpaced the Zacks Consensus Estimate of $3.40 and improved 29.9% year over year. Operating revenues of $14,484 million beat the Zacks Consensus Estimate of $14,441.8 million. The top line increased 12.5% year over year due to upbeat air-travel demand.
American Airlines’ AAL third-quarter 2023 earnings (excluding $1.21 from non-recurring items) of 38 cents per share easily beat the Zacks Consensus Estimate of 26 cents. Results were aided by higher revenues driven by the buoyant air-travel-demand scenario. In the year-ago quarter, AAL reported earnings of 69 cents. Operating revenues of $13,482 million increased marginally year over year. The top line missed the Zacks Consensus Estimate of $13,518.7 million.
Low-cost carrier Southwest Airlines Co. LUV reported second-quarter 2023 earnings per share of $1.09, which outpaced the Zacks Consensus Estimate of $1.08 but declined 16.2% on a year-over-year basis. Revenues of $7,037 million beat the Zacks Consensus Estimate of $6,988.7 million and improved 4.6% year over year on solid leisure demand.
Alaska Air Group ALK reported lower-than-expected earnings per share and revenues in third-quarter 2023. The underperformance was mainly due to high fuel as well as labor costs. Expenses on wages and benefits rose 14% year over year to $782 million in the reported quarter. The labor deal inked by management with pilots last year has led to increased labor costs. High fuel costs due to an escalation in oil price were also a bane and hurt third-quarter results.
ETF in Focus
The $1.32-billion-fund holds about 50 stocks in its portfolio and is concentrated on a few individual securities. All the above-mentioned stocks get a place in the portfolio. The product charges 60 bps in fees.
Bottom Line
While the investing backdrop for JETS is still moderately gloomy, some companies beat on estimates. High oil prices are concerns. However, increased travel demand in the holiday season could bode well for the concerned stocks and the fund.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report
United Airlines Holdings Inc (UAL) : Free Stock Analysis Report
Southwest Airlines Co. (LUV) : Free Stock Analysis Report
American Airlines Group Inc. (AAL) : Free Stock Analysis Report
Alaska Air Group, Inc. (ALK) : Free Stock Analysis Report
U.S. Global Jets ETF (JETS): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
American Airlines’ AAL third-quarter 2023 earnings (excluding $1.21 from non-recurring items) of 38 cents per share easily beat the Zacks Consensus Estimate of 26 cents. In the year-ago quarter, AAL reported earnings of 69 cents. Click to get this free report Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report United Airlines Holdings Inc (UAL) : Free Stock Analysis Report Southwest Airlines Co. (LUV) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Alaska Air Group, Inc. (ALK) : Free Stock Analysis Report U.S.
|
Click to get this free report Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report United Airlines Holdings Inc (UAL) : Free Stock Analysis Report Southwest Airlines Co. (LUV) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Alaska Air Group, Inc. (ALK) : Free Stock Analysis Report U.S. American Airlines’ AAL third-quarter 2023 earnings (excluding $1.21 from non-recurring items) of 38 cents per share easily beat the Zacks Consensus Estimate of 26 cents. In the year-ago quarter, AAL reported earnings of 69 cents.
|
Click to get this free report Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report United Airlines Holdings Inc (UAL) : Free Stock Analysis Report Southwest Airlines Co. (LUV) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Alaska Air Group, Inc. (ALK) : Free Stock Analysis Report U.S. American Airlines’ AAL third-quarter 2023 earnings (excluding $1.21 from non-recurring items) of 38 cents per share easily beat the Zacks Consensus Estimate of 26 cents. In the year-ago quarter, AAL reported earnings of 69 cents.
|
Click to get this free report Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report United Airlines Holdings Inc (UAL) : Free Stock Analysis Report Southwest Airlines Co. (LUV) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Alaska Air Group, Inc. (ALK) : Free Stock Analysis Report U.S. American Airlines’ AAL third-quarter 2023 earnings (excluding $1.21 from non-recurring items) of 38 cents per share easily beat the Zacks Consensus Estimate of 26 cents. In the year-ago quarter, AAL reported earnings of 69 cents.
|
2138.0
|
2023-10-24 00:00:00 UTC
|
Citigroup Maintains American Airlines Group (AAL) Neutral Recommendation
|
AAL
|
https://www.nasdaq.com/articles/citigroup-maintains-american-airlines-group-aal-neutral-recommendation-2
|
nan
|
nan
|
Fintel reports that on October 24, 2023, Citigroup maintained coverage of American Airlines Group (NASDAQ:AAL) with a Neutral recommendation.
Analyst Price Forecast Suggests 41.69% Upside
As of October 5, 2023, the average one-year price target for American Airlines Group is 15.87. The forecasts range from a low of 9.09 to a high of $24.15. The average price target represents an increase of 41.69% from its latest reported closing price of 11.20.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for American Airlines Group is 51,177MM, a decrease of 2.45%. The projected annual non-GAAP EPS is 1.52.
What is the Fund Sentiment?
There are 1082 funds or institutions reporting positions in American Airlines Group. This is an increase of 46 owner(s) or 4.44% in the last quarter. Average portfolio weight of all funds dedicated to AAL is 0.15%, an increase of 7.68%. Total shares owned by institutions decreased in the last three months by 17.68% to 419,012K shares.
The put/call ratio of AAL is 3.46, indicating a bearish outlook.
What are Other Shareholders Doing?
Primecap Management holds 37,318K shares representing 5.71% ownership of the company. In it's prior filing, the firm reported owning 37,738K shares, representing a decrease of 1.13%. The firm increased its portfolio allocation in AAL by 15.25% over the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 20,306K shares representing 3.11% ownership of the company. In it's prior filing, the firm reported owning 20,146K shares, representing an increase of 0.79%. The firm increased its portfolio allocation in AAL by 13.11% over the last quarter.
VPMCX - Vanguard PRIMECAP Fund Investor Shares holds 19,044K shares representing 2.91% ownership of the company. In it's prior filing, the firm reported owning 19,321K shares, representing a decrease of 1.45%. The firm increased its portfolio allocation in AAL by 15.39% over the last quarter.
Renaissance Technologies holds 17,107K shares representing 2.62% ownership of the company. In it's prior filing, the firm reported owning 15,723K shares, representing an increase of 8.09%. The firm increased its portfolio allocation in AAL by 43.72% over the last quarter.
VFINX - Vanguard 500 Index Fund Investor Shares holds 15,544K shares representing 2.38% ownership of the company. In it's prior filing, the firm reported owning 15,180K shares, representing an increase of 2.34%. The firm increased its portfolio allocation in AAL by 12.80% over the last quarter.
American Airlines Group Background Information
(This description is provided by the company.)
American Airlines Group Inc. is the parent company of American Airlines. Together with regional partner American Eagle, American Airlines offers an average of nearly 6,700 flights daily to 350 destinations in 50 countries. American Airlines is a founding member of the oneworld® alliance, whose members and members-elect offer nearly 14,250 flights daily to 1,000 destinations in 150 countries.
Fintel is one of the most comprehensive investing research platforms available to individual investors, traders, financial advisors, and small hedge funds.
Our data covers the world, and includes fundamentals, analyst reports, ownership data and fund sentiment, options sentiment, insider trading, options flow, unusual options trades, and much more. Additionally, our exclusive stock picks are powered by advanced, backtested quantitative models for improved profits.
Click to Learn More
This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Fintel reports that on October 24, 2023, Citigroup maintained coverage of American Airlines Group (NASDAQ:AAL) with a Neutral recommendation. Average portfolio weight of all funds dedicated to AAL is 0.15%, an increase of 7.68%. The put/call ratio of AAL is 3.46, indicating a bearish outlook.
|
Fintel reports that on October 24, 2023, Citigroup maintained coverage of American Airlines Group (NASDAQ:AAL) with a Neutral recommendation. Average portfolio weight of all funds dedicated to AAL is 0.15%, an increase of 7.68%. The put/call ratio of AAL is 3.46, indicating a bearish outlook.
|
Fintel reports that on October 24, 2023, Citigroup maintained coverage of American Airlines Group (NASDAQ:AAL) with a Neutral recommendation. Average portfolio weight of all funds dedicated to AAL is 0.15%, an increase of 7.68%. The put/call ratio of AAL is 3.46, indicating a bearish outlook.
|
Fintel reports that on October 24, 2023, Citigroup maintained coverage of American Airlines Group (NASDAQ:AAL) with a Neutral recommendation. Average portfolio weight of all funds dedicated to AAL is 0.15%, an increase of 7.68%. The put/call ratio of AAL is 3.46, indicating a bearish outlook.
|
2139.0
|
2023-10-24 00:00:00 UTC
|
Chile's Cochilco says large-scale copper mining costs keep growing
|
AAL
|
https://www.nasdaq.com/articles/chiles-cochilco-says-large-scale-copper-mining-costs-keep-growing
|
nan
|
nan
|
SANTIAGO, Oct 24 (Reuters) - The costs of large-scale copper mining in Chile kept rising due to lower production and rising service costs, a report from the state-run Chilean Copper Commission (Cochilco) said on Tuesday.
The report, which covers the first half of the year, said that the direct cost reached 198.8 cents per pound, a year-on-year increase of 39.6 cents.
"Lower production and the increase in the costs of third-party services, remunerations and prices of materials, electricity and TC-RC (treatment and refining) charges, explain the increase in costs in the first semester," the report said, adding that smaller operations were the most affected by the cost increase.
The report sampled 22 mining operations, which represent 93.5% of production. Out of those, 19 had cost increases. The smallest producer in the sample produced 102,800 metric tons of copper.
The report noted a few factors that counteracted cost increases like higher credits for the sale of molybdenum and gold, the decrease in the cost of sulfuric acid, freight and diesel.
Chile is home to state-owned Codelco COBRE.UL, the world's largest copper producer, as well as other mining giants like BHP BHP.AX, Glencore GLEN.L, Anglo American AAL.L and Antofagasta ANTO.L.
(Report by Fabián Andrés Cambero; Writing by Alexander Villegas; Editing by Rod Nickel)
((fabian.cambero@thomsonreuters.com; twitter: @fab_reuters; +569 62479675;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Chile is home to state-owned Codelco COBRE.UL, the world's largest copper producer, as well as other mining giants like BHP BHP.AX, Glencore GLEN.L, Anglo American AAL.L and Antofagasta ANTO.L. SANTIAGO, Oct 24 (Reuters) - The costs of large-scale copper mining in Chile kept rising due to lower production and rising service costs, a report from the state-run Chilean Copper Commission (Cochilco) said on Tuesday. (Report by Fabián Andrés Cambero; Writing by Alexander Villegas; Editing by Rod Nickel) ((fabian.cambero@thomsonreuters.com; twitter: @fab_reuters; +569 62479675;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Chile is home to state-owned Codelco COBRE.UL, the world's largest copper producer, as well as other mining giants like BHP BHP.AX, Glencore GLEN.L, Anglo American AAL.L and Antofagasta ANTO.L. SANTIAGO, Oct 24 (Reuters) - The costs of large-scale copper mining in Chile kept rising due to lower production and rising service costs, a report from the state-run Chilean Copper Commission (Cochilco) said on Tuesday. "Lower production and the increase in the costs of third-party services, remunerations and prices of materials, electricity and TC-RC (treatment and refining) charges, explain the increase in costs in the first semester," the report said, adding that smaller operations were the most affected by the cost increase.
|
Chile is home to state-owned Codelco COBRE.UL, the world's largest copper producer, as well as other mining giants like BHP BHP.AX, Glencore GLEN.L, Anglo American AAL.L and Antofagasta ANTO.L. SANTIAGO, Oct 24 (Reuters) - The costs of large-scale copper mining in Chile kept rising due to lower production and rising service costs, a report from the state-run Chilean Copper Commission (Cochilco) said on Tuesday. "Lower production and the increase in the costs of third-party services, remunerations and prices of materials, electricity and TC-RC (treatment and refining) charges, explain the increase in costs in the first semester," the report said, adding that smaller operations were the most affected by the cost increase.
|
Chile is home to state-owned Codelco COBRE.UL, the world's largest copper producer, as well as other mining giants like BHP BHP.AX, Glencore GLEN.L, Anglo American AAL.L and Antofagasta ANTO.L. "Lower production and the increase in the costs of third-party services, remunerations and prices of materials, electricity and TC-RC (treatment and refining) charges, explain the increase in costs in the first semester," the report said, adding that smaller operations were the most affected by the cost increase. Out of those, 19 had cost increases.
|
2140.0
|
2023-10-24 00:00:00 UTC
|
Botswana's ODC halts diamond sales as industry seeks to reduce glut
|
AAL
|
https://www.nasdaq.com/articles/botswanas-odc-halts-diamond-sales-as-industry-seeks-to-reduce-glut
|
nan
|
nan
|
By Brian Benza
GABORONE, Oct 24 (Reuters) - Botswana's state-owned Okavango Diamond Company (ODC) has temporarily halted its rough stone sales as part of an industry-wide drive to reduce the glut of inventory caused by lower global demand for jewelry, its managing director Mmetla Masire said on Tuesday.
ODC, which reported a record $1.1 billion in revenue in 2022, holds 10 auctions a year to sell its 25% allocation of production from Debswana Diamond Company, a joint venture between Anglo American's AAL.L De Beers and Botswana, in terms of the partners' gem sales agreement.
Debswana produced about 24 million carats last year, with ODC getting an allocation of about 6 million carats.
The company has cancelled its November auction and a decision on the December sale is still to be made as the industry battles slowing demand for cut and polished diamonds in the U.S and China, Masire said.
“For the first time, we have had to build up inventory as we do not want to just irresponsibly release goods into a market which is already oversupplied," Masire said in an interview. "For now, we have stopped the auctions, we will decide on the December auction."
Last month, trade bodies in India, which cuts and polishes 90% of the world’s rough diamonds, urged members to halt rough diamond imports for two months to manage supplies and aid prices due to weak demand.
In August, De Beers said it would allow its customers to defer some of their purchases for the rest of the year.
As part of a between De Beers and Botswana, ODC’s allocation is set to rise to 7 million carats. Masire said the company was working on introducing contract sales, a model that De Beers uses to sell 90 % of its supply, among other new sales channels.
“We are still to decide on what percentage of our allocation will be sold through contract sales to complement our auctions," Masire said. "We are likely to have two-year sales contracts and we are looking at going into partnership with only a limited number of buyers so that we can better serve them.”
(Reporting by Brian Benza; Editing by Nelson Banya and Bill Berkrot)
((Nelson.Banya@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
ODC, which reported a record $1.1 billion in revenue in 2022, holds 10 auctions a year to sell its 25% allocation of production from Debswana Diamond Company, a joint venture between Anglo American's AAL.L De Beers and Botswana, in terms of the partners' gem sales agreement. By Brian Benza GABORONE, Oct 24 (Reuters) - Botswana's state-owned Okavango Diamond Company (ODC) has temporarily halted its rough stone sales as part of an industry-wide drive to reduce the glut of inventory caused by lower global demand for jewelry, its managing director Mmetla Masire said on Tuesday. The company has cancelled its November auction and a decision on the December sale is still to be made as the industry battles slowing demand for cut and polished diamonds in the U.S and China, Masire said.
|
ODC, which reported a record $1.1 billion in revenue in 2022, holds 10 auctions a year to sell its 25% allocation of production from Debswana Diamond Company, a joint venture between Anglo American's AAL.L De Beers and Botswana, in terms of the partners' gem sales agreement. By Brian Benza GABORONE, Oct 24 (Reuters) - Botswana's state-owned Okavango Diamond Company (ODC) has temporarily halted its rough stone sales as part of an industry-wide drive to reduce the glut of inventory caused by lower global demand for jewelry, its managing director Mmetla Masire said on Tuesday. Debswana produced about 24 million carats last year, with ODC getting an allocation of about 6 million carats.
|
ODC, which reported a record $1.1 billion in revenue in 2022, holds 10 auctions a year to sell its 25% allocation of production from Debswana Diamond Company, a joint venture between Anglo American's AAL.L De Beers and Botswana, in terms of the partners' gem sales agreement. By Brian Benza GABORONE, Oct 24 (Reuters) - Botswana's state-owned Okavango Diamond Company (ODC) has temporarily halted its rough stone sales as part of an industry-wide drive to reduce the glut of inventory caused by lower global demand for jewelry, its managing director Mmetla Masire said on Tuesday. Masire said the company was working on introducing contract sales, a model that De Beers uses to sell 90 % of its supply, among other new sales channels.
|
ODC, which reported a record $1.1 billion in revenue in 2022, holds 10 auctions a year to sell its 25% allocation of production from Debswana Diamond Company, a joint venture between Anglo American's AAL.L De Beers and Botswana, in terms of the partners' gem sales agreement. The company has cancelled its November auction and a decision on the December sale is still to be made as the industry battles slowing demand for cut and polished diamonds in the U.S and China, Masire said. As part of a between De Beers and Botswana, ODC’s allocation is set to rise to 7 million carats.
|
2141.0
|
2023-10-24 00:00:00 UTC
|
Anglo American lowers 2023 copper production guidance
|
AAL
|
https://www.nasdaq.com/articles/anglo-american-lowers-2023-copper-production-guidance
|
nan
|
nan
|
Recasts, adds detail
LONDON, Oct 24 (Reuters) - Global miner Anglo American AAL.L on Tuesday lowered its 2023 production guidance for copper on curtailments at its Chilean operations, even as its output of the metal rose 42% in the third quarter.
Anglo expects to produce between 830,000 and 870,000 metric tons of copper this year, lowering a previous forecast of 840,000 to 930,000.
Its copper output rose to 596,000 tons in the first nine months of the year, underpinned by the ramp-up of its Quellaveco mine, from 420,000 tons a year earlier, it said.
Copper demand for use in products such as solar panels and electric cars is set to steepen sharply in the coming years as the world moves toward green energy and electrification.
The London-listed company posted a double-digit fall in steelmaking coal and diamonds output in the third quarter.
(Reporting by Clara Denina; editing by Jason Neely)
((Clara.Denina@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Recasts, adds detail LONDON, Oct 24 (Reuters) - Global miner Anglo American AAL.L on Tuesday lowered its 2023 production guidance for copper on curtailments at its Chilean operations, even as its output of the metal rose 42% in the third quarter. Copper demand for use in products such as solar panels and electric cars is set to steepen sharply in the coming years as the world moves toward green energy and electrification. The London-listed company posted a double-digit fall in steelmaking coal and diamonds output in the third quarter.
|
Recasts, adds detail LONDON, Oct 24 (Reuters) - Global miner Anglo American AAL.L on Tuesday lowered its 2023 production guidance for copper on curtailments at its Chilean operations, even as its output of the metal rose 42% in the third quarter. Anglo expects to produce between 830,000 and 870,000 metric tons of copper this year, lowering a previous forecast of 840,000 to 930,000. Its copper output rose to 596,000 tons in the first nine months of the year, underpinned by the ramp-up of its Quellaveco mine, from 420,000 tons a year earlier, it said.
|
Recasts, adds detail LONDON, Oct 24 (Reuters) - Global miner Anglo American AAL.L on Tuesday lowered its 2023 production guidance for copper on curtailments at its Chilean operations, even as its output of the metal rose 42% in the third quarter. Its copper output rose to 596,000 tons in the first nine months of the year, underpinned by the ramp-up of its Quellaveco mine, from 420,000 tons a year earlier, it said. (Reporting by Clara Denina; editing by Jason Neely) ((Clara.Denina@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Recasts, adds detail LONDON, Oct 24 (Reuters) - Global miner Anglo American AAL.L on Tuesday lowered its 2023 production guidance for copper on curtailments at its Chilean operations, even as its output of the metal rose 42% in the third quarter. Anglo expects to produce between 830,000 and 870,000 metric tons of copper this year, lowering a previous forecast of 840,000 to 930,000. Its copper output rose to 596,000 tons in the first nine months of the year, underpinned by the ramp-up of its Quellaveco mine, from 420,000 tons a year earlier, it said.
|
2142.0
|
2023-10-23 00:00:00 UTC
|
It’s Probably Time to Ground United Airlines Stock (NASDAQ:UAL)
|
AAL
|
https://www.nasdaq.com/articles/its-probably-time-to-ground-united-airlines-stock-nasdaq%3Aual
|
nan
|
nan
|
Although the COVID-19 pandemic imposed a disproportionate impact on United Airlines (NASDAQ:UAL) and the underlying industry, forward-looking investors banked on the pent-up demand theory to eventually lift sentiment. However, this so-called “revenge travel” catalyst may be diminishing as economic pressures crimp discretionary spending. Therefore, it’s probably time to ground United stock. I am bearish on UAL stock.
UAL Stock Suffers Badly in the Market
A major clue as to the dangers facing UAL stock at this juncture centers on its recent market volatility. Last week, UAL incurred a steep drop of over 9%. With this bleeding of red ink, United is now down about 5% since the beginning of the year. Of course, much of the downfall stemmed from its earnings report.
On paper, United actually delivered a robust print for the third quarter of Fiscal Year 2023. As the TipRanks Team pointed out, earnings per share clocked in at $3.65, beating analysts’ consensus EPS target of $3.38. On the top line, the airliner posted sales of $14.48 billion, up 12.5% on a year-over-year basis. As well, this tally beat covering experts’ estimate by $70 million.
Specifically, management stated that a boost in passenger volume contributed to the revenue spike. Here, sales landed at $13.35 billion, above the consensus view of $13.25 billion. To be fair, Cargo revenue dipped by 33% to $333 million, falling below the estimate of $347.6 million. However, with the broader narrative focused on sustained revenge travel, United delivered the goods.
Unfortunately, the market responds to forward-looking implications. Regarding Q4, management offered a bleaker picture. If flights to Tel Aviv, Israel, are suspended through October, the airliner believes EPS will slip to $1.80. However, if such flights are suspended through the end of the year, EPS may only come in at $1.50.
Worryingly, Wall Street anticipated Q4 EPS to hit $2.09; hence, the severe volatility.
Revenge Travel May No Longer be Relevant
At the beginning of the COVID-19 crisis, revenue passenger miles for U.S. carriers plunged by nearly 97% between February and April 2020. However, the most intrepid contrarians bought up shares of UAL stock during the downcycle in anticipation of a travel-sector rebound. Unfortunately, headwinds impacting the consumer economy – such as stubbornly-high inflation – may finally be catching up to UAL stock.
For one thing, revenue passenger miles have been flat to declining since February 2023. Also, this metric has gotten close to (but not quite reached) levels seen during the final months of 2019. That means air travel demand may be peaking prior to a full recovery in the sector, which is obviously worrisome.
Second, outside data indicates that revenge travel sentiment may be fading. That’s according to a CNBC report, which cited a Morning Consult study that shows that while travel intentions are rising in many countries, they’re also flatlining or fading in other nations. Particularly, the European region has suffered diminished travel plans among its consumers.
To be clear, Morning Consult is not projecting that travel demand will drop off a cliff. However, the thesis is that those who wanted to engage in revenge travel have already done so. And while the research firm might not want to give a downbeat forecast, investors are voting with their actions.
In particular, close peers such as Delta Air Lines (NYSE:DAL) and American Air Lines (NASDAQ:AAL) suffered conspicuous losses last week, as they both lost almost 6% of their equity value.
Of course, the Hamas attack on Israel imposes a horrific and completely unnecessary obstacle to the airline industry. However, even with stability in that region, UAL stock and its peers may still face pressure from the hurting consumer economy.
Is UAL Stock a Buy, According to Analysts?
Turning to Wall Street, UAL stock has a Moderate Buy consensus rating based on 11 Buys, four Holds, and one Sell rating. The average UAL stock price target is $62.27, implying 76% upside potential.
The Takeaway: UAL Stock May Lose a Key Catalyst
With the world’s attention rightfully turning to Israel as it responds to the Hamas terrorist attack, United Airlines has become an unwitting victim. Because of the violence, it must downgrade its profitability expectations. Still, even if peace and stability were to materialize, fading revenge travel sentiment is the bigger story, at least as far as UAL stock is concerned. Losing this key catalyst spells big trouble for the entire industry.
Disclosure
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
In particular, close peers such as Delta Air Lines (NYSE:DAL) and American Air Lines (NASDAQ:AAL) suffered conspicuous losses last week, as they both lost almost 6% of their equity value. Although the COVID-19 pandemic imposed a disproportionate impact on United Airlines (NASDAQ:UAL) and the underlying industry, forward-looking investors banked on the pent-up demand theory to eventually lift sentiment. That’s according to a CNBC report, which cited a Morning Consult study that shows that while travel intentions are rising in many countries, they’re also flatlining or fading in other nations.
|
In particular, close peers such as Delta Air Lines (NYSE:DAL) and American Air Lines (NASDAQ:AAL) suffered conspicuous losses last week, as they both lost almost 6% of their equity value. Although the COVID-19 pandemic imposed a disproportionate impact on United Airlines (NASDAQ:UAL) and the underlying industry, forward-looking investors banked on the pent-up demand theory to eventually lift sentiment. However, even with stability in that region, UAL stock and its peers may still face pressure from the hurting consumer economy.
|
In particular, close peers such as Delta Air Lines (NYSE:DAL) and American Air Lines (NASDAQ:AAL) suffered conspicuous losses last week, as they both lost almost 6% of their equity value. UAL Stock Suffers Badly in the Market A major clue as to the dangers facing UAL stock at this juncture centers on its recent market volatility. The Takeaway: UAL Stock May Lose a Key Catalyst With the world’s attention rightfully turning to Israel as it responds to the Hamas terrorist attack, United Airlines has become an unwitting victim.
|
In particular, close peers such as Delta Air Lines (NYSE:DAL) and American Air Lines (NASDAQ:AAL) suffered conspicuous losses last week, as they both lost almost 6% of their equity value. I am bearish on UAL stock. As the TipRanks Team pointed out, earnings per share clocked in at $3.65, beating analysts’ consensus EPS target of $3.38.
|
2143.0
|
2023-10-23 00:00:00 UTC
|
3 Stocks to Avoid This Week
|
AAL
|
https://www.nasdaq.com/articles/3-stocks-to-avoid-this-week-101
|
nan
|
nan
|
Wall Street moved lower last week. I thought my three stocks to avoid for that week -- Carnival, Cohen & Steers, and American Airlines -- were going to lose to the market. They fell 10%, 7%, and 5%, respectively, for an average decline of 7.3% for the week.
The S&P 500 moved 2.4% lower, but I was still right. I have been correct in 66 of the past 104 weeks, or 63% of the time.
Let's turn our attention to the current week. I see Altria (NYSE: MO), Southwest (NYSE: LUV), and Charter Communications (NASDAQ: CHTR) as stocks you might want to consider steering clear of this week. Let's go over my near-term concerns with all three investments.
1. Altria
Where there are smokes, there's fire. Let's strike a match and start with Altria. It reports quarterly results on Thursday morning. The long-term case for tobacco products is understandably bearish. The health risks and litigation concerns are only getting louder. Altria's moves to diversify by diving into other vices -- vaping, cannabis, and wines -- haven't exactly paid off.
This has never been much of a growth story. You have to back more than 20 years to find the last time that annual revenue growth topped 6%. It has also failed to exceed analyst earnings estimates by more than a token penny in more than a year.
Image source: Getty Images.
The attraction to Altria is primarily its chunky payout. Altria's 9.2% yield -- like a colorful pack of its cigarettes -- is a flashy lure to making a poor decision. Wall Street pros see revenue and earnings inching lower in this week's financial update. This isn't a surprise. Atlria's revenue has clocked in with a year-over-year decline in 6 of its last 9 quarters.
The narrative could be about to get worse. Rising rates will sting heavily leveraged companies, and Altria fits that bill with more than $27 billion in total debt on its balance sheet. With gas prices moving higher and student debt loan repayments starting up again this month it will mean less money to spend fishing in Altria's candy bowl.
2. Southwest
Betting against a prolific airline paid off last week, so let's take that flight again. Southwest is a market darling. It's one of the few air carriers to actually pay a dividend, a respectable 3% yield even in this climate with money market funds paying a lot more. Southwest is generally well-liked by consumers. It's also been consistently profitable with more than four decades of positive annual net income outside of 2020.
It doesn't mean that Southwest won't suffer some turbulence this week. The airline will offer up its third-quarter results on Thursday, and investors may want to buckle up. Southwest lowered its revenue guidance last month, as thinning demand weighs on the top line. Rising fuel prices will squeeze the bottom line.
Southwest was already sputtering. Analysts have been slashing their earnings per share targets in recent months, going from $0.98 three months ago to $0.38 now. Wall Street that was hopeful for profitability nearly doubling are now bracing for a decline. Making matters worse, Southwest has fallen short of Wall Street expectations for three consecutive quarters. Unlike it's ticker symbol, I'm not loving Southwest this earnings season.
3. Charter Communications
Picking stocks that may be susceptible to tumble in a week where hundreds of companies are posting fresh financials is like bringing a bear to a china shop. There are so many things that can break, and let's wrap things up with Charter Communications. Charter's Spectrums is a major player in broadband connectivity and cable, serving more than 32 million customers. It steps up with fresh numbers on Friday morning.
The appeal in getting folks online makes sense in today's climate, but it's tough to be a cable operator in today's cable-cutting climate. Charter ticks off many of the boxes I look for in singling out an earnings report that can go wrong. Analysts have been paring back their forecasts, just like Southwest. It has also missed earnings targets in three of the past four quarters.
The stock market is always on the move. If you're looking for safe stocks, you aren't likely to find them in Altria, Southwest, and Charter Communications this week.
10 stocks we like better than Altria Group
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Altria Group wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of October 16, 2023
Rick Munarriz has no position in any of the stocks mentioned. The Motley Fool recommends Carnival Corp. and Southwest Airlines. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Rising rates will sting heavily leveraged companies, and Altria fits that bill with more than $27 billion in total debt on its balance sheet. With gas prices moving higher and student debt loan repayments starting up again this month it will mean less money to spend fishing in Altria's candy bowl. Charter Communications Picking stocks that may be susceptible to tumble in a week where hundreds of companies are posting fresh financials is like bringing a bear to a china shop.
|
Wall Street moved lower last week. I see Altria (NYSE: MO), Southwest (NYSE: LUV), and Charter Communications (NASDAQ: CHTR) as stocks you might want to consider steering clear of this week. You have to back more than 20 years to find the last time that annual revenue growth topped 6%.
|
I see Altria (NYSE: MO), Southwest (NYSE: LUV), and Charter Communications (NASDAQ: CHTR) as stocks you might want to consider steering clear of this week. If you're looking for safe stocks, you aren't likely to find them in Altria, Southwest, and Charter Communications this week. 10 stocks we like better than Altria Group When our analyst team has a stock tip, it can pay to listen.
|
You have to back more than 20 years to find the last time that annual revenue growth topped 6%. The stock market is always on the move. If you're looking for safe stocks, you aren't likely to find them in Altria, Southwest, and Charter Communications this week.
|
2144.0
|
2023-10-20 00:00:00 UTC
|
Validea Detailed Fundamental Analysis - AAL
|
AAL
|
https://www.nasdaq.com/articles/validea-detailed-fundamental-analysis-aal-5
|
nan
|
nan
|
Below is Validea's guru fundamental report for AMERICAN AIRLINES GROUP INC (AAL). Of the 22 guru strategies we follow, AAL rates highest using our Acquirer's Multiple Investor model based on the published strategy of Tobias Carlisle. This deep value model looks for inexpensive stocks that could be potential takeover targets.
AMERICAN AIRLINES GROUP INC (AAL) is a mid-cap value stock in the Airline industry. The rating using this strategy is 89% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
SECTOR: PASS
QUALITY: PASS
ACQUIRER'S MULTIPLE FAIL
Detailed Analysis of AMERICAN AIRLINES GROUP INC
AAL Guru Analysis
AAL Fundamental Analysis
More Information on Tobias Carlisle
Tobias Carlisle Portfolio
About Tobias Carlisle: Tobias Carlisle is a widely recognized expert on deep value investing. He is the author of "The Acquirer's Multiple: How the Billionaire Contrarians of Deep Value Beat the Market" and the founder of Acquirer's Funds. He is also the author of "Deep Value: Why Activists Investors and Other Contrarians Battle for Control of Losing Corporations" and co-author of Quantitative Value: "A Practitioner's Guide to Automating Intelligent Investment and Eliminating Behavioral Errors" Tobias is originally from Australia, where he worked an an analyst at an activist hedge fund and was a lawyer specializing in mergers and acquisitions.
Additional Research Links
Top Large-Cap Growth Stocks
Factor-Based Stock Portfolios
Dividend Aristocrats 2023
High Insider Ownership Stocks
Top S&P 500 Stocks
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Below is Validea's guru fundamental report for AMERICAN AIRLINES GROUP INC (AAL). Of the 22 guru strategies we follow, AAL rates highest using our Acquirer's Multiple Investor model based on the published strategy of Tobias Carlisle. AMERICAN AIRLINES GROUP INC (AAL) is a mid-cap value stock in the Airline industry.
|
Below is Validea's guru fundamental report for AMERICAN AIRLINES GROUP INC (AAL). Of the 22 guru strategies we follow, AAL rates highest using our Acquirer's Multiple Investor model based on the published strategy of Tobias Carlisle. Detailed Analysis of AMERICAN AIRLINES GROUP INC AAL Guru Analysis AAL Fundamental Analysis More Information on Tobias Carlisle Tobias Carlisle Portfolio About Tobias Carlisle: Tobias Carlisle is a widely recognized expert on deep value investing.
|
Of the 22 guru strategies we follow, AAL rates highest using our Acquirer's Multiple Investor model based on the published strategy of Tobias Carlisle. Detailed Analysis of AMERICAN AIRLINES GROUP INC AAL Guru Analysis AAL Fundamental Analysis More Information on Tobias Carlisle Tobias Carlisle Portfolio About Tobias Carlisle: Tobias Carlisle is a widely recognized expert on deep value investing. Below is Validea's guru fundamental report for AMERICAN AIRLINES GROUP INC (AAL).
|
Below is Validea's guru fundamental report for AMERICAN AIRLINES GROUP INC (AAL). Of the 22 guru strategies we follow, AAL rates highest using our Acquirer's Multiple Investor model based on the published strategy of Tobias Carlisle. Detailed Analysis of AMERICAN AIRLINES GROUP INC AAL Guru Analysis AAL Fundamental Analysis More Information on Tobias Carlisle Tobias Carlisle Portfolio About Tobias Carlisle: Tobias Carlisle is a widely recognized expert on deep value investing.
|
2145.0
|
2023-10-20 00:00:00 UTC
|
Is the Revenge Travel Boom Starting to Fizzle Out?
|
AAL
|
https://www.nasdaq.com/articles/is-the-revenge-travel-boom-starting-to-fizzle-out
|
nan
|
nan
|
The post-pandemic revenge travel boom may be winding down, at least depending on which company you ask.
Revenge travel refers to the boom that occurred as Covid restrictions eased and people rebooked canceled travel plans and took advantage of their freedom to move around again.
Shares of American Airlines Group Inc. (NASDAQ: AAL), Alaska Air Group Inc. (NYSE: ALK), Southwest Airlines Co. (NYSE: LUV), United Airlines Holdings Inc. (NASDAQ: UAL), and Delta Air Lines Inc. (NYSE: DAL) are all showing three-month declines.
However, budget airlines such as Frontier Group Holdings Inc. (NASDAQ: ULCC) are warning that demand is on the decline. Another discount airline, Spirit Airlines Inc. (NYSE: SAVE), has been slashing fare prices to fill seats.
But airlines such as Delta and United, which specialize in international travelers and those who tend to spend more on a premium travel experience, say demand remains robust.
Airlines' Guidance on the Descent
When American Airlines reported third-quarter results on October 19, the company slashed full-year earnings guidance to a range between $2.25 and $2.50 per share, down from an earlier forecast of $3 to $3.75 per share.
That reduction came despite beating net income views, which you can see using MarketBeat's American Airlines earnings data.
It followed United Airlines' adjusted forecast calling for earnings in a range between $1.50 and $1.80 per share, well below analysts' consensus view of $2.06 per share. The company cited headwinds such as higher fuel prices and labor costs, and cancellations of flights to Tel Aviv.
Last week, Delta also slashed its full-year earnings outlook to $6 to $6.25 a share, down from an earlier range of $6 to $7.
As a group, airline stocks have declined in each of the past four months. You can track industry performance using the U.S. Global Jets ETF (NYSEARCA: JETS) chart, which shows a three-month decline of 29%.
Pre-Pandemic Travel Patterns Returning
After last year's better-than-average September and October bookings, analysts are seeing signs that indicate travelers are returning to normal autumn travel patterns. Industry-wide, there's more capacity this year than last.
Meanwhile, online travel agency Booking Holdings Inc. (NASDAQ: BKNG) is down 9.75% in the past month. That's despite analysts expecting the company to earn $144.81 a share, up 45%. Next year, the company is expected to grow earnings by another 17%, to $169.94 per share.
Two companies under the Booking Holdings umbrella, travel site Kayak and restaurant reservation site Open Table, recently laid off 80 employees. That's not necessarily a sign of financial trouble, especially since analysts still expect hefty earnings increases. However, it could signal the company is looking to cut costs to meet its own and analysts' targets.
Booking.com has been forming a flat base with a 13% peak-to-trough correction, which you can see on the Booking Holdings chart. The stock is down 5.59% for the week, as of October 19, after falling 3.28% the previous week.
As a whole, travel stocks have fallen sharply after Hamas' attack on Israel, which resulted in Israeli counterattacks.
Travel Stocks Typically Decline During Times of War
Travel stocks often decline during times of war due to several factors, including security concerns and uncertainty about safety. That's particularly true of regions affected by war, which explains cancellations of flights to Tel Aviv.
Additionally, wars can disrupt transportation infrastructure, causing wider cancellations and delays. Wars can also result in economic instability and higher fuel costs. This was a factor in early 2022 when Russia invaded Ukraine and appears to be a factor again.
For all those reasons, investors often sell off travel stocks in times of geopolitical strife.
These days, it's not just airline and travel booking sites that investors are scrutinizing; the hotel industry as a group has been consolidating but appears to be finding support at better levels than airlines.
Hotels More Resilient than Airlines
You can see that support on the Marriott International Inc. (NASDAQ: MAR) chart. Marriott, the largest hotel stock by market capitalization, is getting support well above its 200-day average, and is holding above lows between $189 and $190.
Hotels tend to outperform airlines during times of uncertainty due to their flexible booking policies, catering to local travelers, and diverse clientele, including construction workers and other workers traveling for essential business, such as healthcare.
Hotels also have lower operating costs than airlines, allowing them to adapt more easily to changing circumstances.
The article "Is the Revenge Travel Boom Starting to Fizzle Out?" originally appeared on MarketBeat.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Shares of American Airlines Group Inc. (NASDAQ: AAL), Alaska Air Group Inc. (NYSE: ALK), Southwest Airlines Co. (NYSE: LUV), United Airlines Holdings Inc. (NASDAQ: UAL), and Delta Air Lines Inc. (NYSE: DAL) are all showing three-month declines. The company cited headwinds such as higher fuel prices and labor costs, and cancellations of flights to Tel Aviv. As a whole, travel stocks have fallen sharply after Hamas' attack on Israel, which resulted in Israeli counterattacks.
|
Shares of American Airlines Group Inc. (NASDAQ: AAL), Alaska Air Group Inc. (NYSE: ALK), Southwest Airlines Co. (NYSE: LUV), United Airlines Holdings Inc. (NASDAQ: UAL), and Delta Air Lines Inc. (NYSE: DAL) are all showing three-month declines. Airlines' Guidance on the Descent When American Airlines reported third-quarter results on October 19, the company slashed full-year earnings guidance to a range between $2.25 and $2.50 per share, down from an earlier forecast of $3 to $3.75 per share. Travel Stocks Typically Decline During Times of War Travel stocks often decline during times of war due to several factors, including security concerns and uncertainty about safety.
|
Shares of American Airlines Group Inc. (NASDAQ: AAL), Alaska Air Group Inc. (NYSE: ALK), Southwest Airlines Co. (NYSE: LUV), United Airlines Holdings Inc. (NASDAQ: UAL), and Delta Air Lines Inc. (NYSE: DAL) are all showing three-month declines. Travel Stocks Typically Decline During Times of War Travel stocks often decline during times of war due to several factors, including security concerns and uncertainty about safety. These days, it's not just airline and travel booking sites that investors are scrutinizing; the hotel industry as a group has been consolidating but appears to be finding support at better levels than airlines.
|
Shares of American Airlines Group Inc. (NASDAQ: AAL), Alaska Air Group Inc. (NYSE: ALK), Southwest Airlines Co. (NYSE: LUV), United Airlines Holdings Inc. (NASDAQ: UAL), and Delta Air Lines Inc. (NYSE: DAL) are all showing three-month declines. Travel Stocks Typically Decline During Times of War Travel stocks often decline during times of war due to several factors, including security concerns and uncertainty about safety. These days, it's not just airline and travel booking sites that investors are scrutinizing; the hotel industry as a group has been consolidating but appears to be finding support at better levels than airlines.
|
2146.0
|
2023-10-19 00:00:00 UTC
|
De Beers says G7 needs to consult industry on planned Russian diamond ban
|
AAL
|
https://www.nasdaq.com/articles/de-beers-says-g7-needs-to-consult-industry-on-planned-russian-diamond-ban
|
nan
|
nan
|
LONDON, Oct 19 (Reuters) - Global diamond company De Beers on Thursday urged G7 leaders to debate plans to ban Russian diamonds from 2024 with governments and industry in major producing and processing countries to try to end protracted deadlock.
Group of Seven countries are this week expected to discuss four proposals prepared by Belgium, India, a French jewellery industry group and the World Diamond Council.
The differences between the proposals explain why a ban, in the works since 2022 as part of sanctions on Russia over its invasion of Ukraine, has been difficult to agree so far.
Russia is the world's biggest producer of rough diamonds by volume, accounting for around 30% of the market.
In its letter to the G7 leaders, De Beers, a unit of diversified miner Anglo American AAL.L, said it has been in discussions with government and industry stakeholders as part of the World Diamond Council proposal.
"Throughout our discussions two things have been clear: why we should do this is easy, but how we should do it is hard," De Beers Chief Executive Al Cook said.
"We urge the G7 to engage with governments and industry in key producer countries such as Botswana, Namibia, South Africa and Angola and in key cutting centres such as India."
(Reporting by Clara Denina and Polina Devitt; editing by Barbara Lewis)
((Clara.Denina@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
In its letter to the G7 leaders, De Beers, a unit of diversified miner Anglo American AAL.L, said it has been in discussions with government and industry stakeholders as part of the World Diamond Council proposal. The differences between the proposals explain why a ban, in the works since 2022 as part of sanctions on Russia over its invasion of Ukraine, has been difficult to agree so far. "Throughout our discussions two things have been clear: why we should do this is easy, but how we should do it is hard," De Beers Chief Executive Al Cook said.
|
In its letter to the G7 leaders, De Beers, a unit of diversified miner Anglo American AAL.L, said it has been in discussions with government and industry stakeholders as part of the World Diamond Council proposal. Group of Seven countries are this week expected to discuss four proposals prepared by Belgium, India, a French jewellery industry group and the World Diamond Council. "We urge the G7 to engage with governments and industry in key producer countries such as Botswana, Namibia, South Africa and Angola and in key cutting centres such as India."
|
In its letter to the G7 leaders, De Beers, a unit of diversified miner Anglo American AAL.L, said it has been in discussions with government and industry stakeholders as part of the World Diamond Council proposal. LONDON, Oct 19 (Reuters) - Global diamond company De Beers on Thursday urged G7 leaders to debate plans to ban Russian diamonds from 2024 with governments and industry in major producing and processing countries to try to end protracted deadlock. Group of Seven countries are this week expected to discuss four proposals prepared by Belgium, India, a French jewellery industry group and the World Diamond Council.
|
In its letter to the G7 leaders, De Beers, a unit of diversified miner Anglo American AAL.L, said it has been in discussions with government and industry stakeholders as part of the World Diamond Council proposal. The differences between the proposals explain why a ban, in the works since 2022 as part of sanctions on Russia over its invasion of Ukraine, has been difficult to agree so far. Russia is the world's biggest producer of rough diamonds by volume, accounting for around 30% of the market.
|
2147.0
|
2023-10-19 00:00:00 UTC
|
US STOCKS-Wall St drops as Treasury yields surge, Powell speaks
|
AAL
|
https://www.nasdaq.com/articles/us-stocks-wall-st-drops-as-treasury-yields-surge-powell-speaks
|
nan
|
nan
|
By Caroline Valetkevitch
NEW YORK, Oct 19 (Reuters) - U.S. stocks ended solidly lower on Thursday, with shares of Tesla fallingafter its results and Treasury yields surging as Federal Reserve Chair Jerome Powell spoke about monetary policy and investors worried whether interest rates would stay higher for longer.
TeslaTSLA.O shares dropped a day after the carmaker missed Wall Street expectations on third-quarter gross margin, profit and revenue, and its CEO Elon Musk said he was concerned about high interest rates affecting demand.
Treasury yields rose further and the benchmark 10-year note yield was at a 16-year high of almost 5%.
"The 10-year looks like it's establishing a new higher trend, which ... is putting pressure on equities, at least in the short term," said Oliver Pursche, senior vice president, advisor for Wealthspire Advisors in Westport, Connecticut.
"Markets were hoping that Jay Powell would indicate that the Fed is going to pause in its interest rate hikes, and he effectively hinted at the idea that they're going to have to raise again if they continue to have elevated concerns over inflation."
The rate-sensitive real estate sector .SPLRCR dropped 2.4% and was the day's worst-performing S&P 500 sector.
The Dow Jones Industrial Average .DJI fell 250.91 points, or 0.75%, to 33,414.17, the S&P 500 .SPX lost 36.6 points, or 0.85%, to 4,278 and the Nasdaq Composite .IXIC dropped 128.13 points, or 0.96%, to 13,186.18.
The Cboe Volatility index .VIX jumped to its highest close since March.
Data this week has pointed to strong consumer demand and a tight labor market. A U.S. Labor Department report on Thursday showed the number of Americans filing new claims for unemployment benefits fell to a nine-month low last week.
The labor market is showing strength even though the central bank has raised its benchmark overnight interest rate by 525 basis points since March 2022.
Also in earnings, Netflix Inc NFLX.O shares jumped 16.1% after the world's No. 1 streaming company by subscriber count said it was raising prices for some of its plans in the United States, Britain and France after adding 9 million users in the third quarter.
Shares of American AirlinesAAL.O rose 0.8% after the company posted upbeat quarterly results. On Wednesday, airline stocks fell sharply after United Airlines UAL.O forecast current-quarter profit below analyst expectations.
Volume on U.S. exchanges was 11.82 billion shares, compared with the 10.50 billion average for the full session over the last 20 trading days.
Declining issues outnumbered advancing ones on the NYSE by a 3.96-to-1 ratio; on Nasdaq, a 2.96-to-1 ratio favored decliners.
The S&P 500 posted 2 new 52-week highs and 37 new lows; the Nasdaq Composite recorded 15 new highs and 370 new lows.
(Reporting by Caroline Valetkevitch; additional reporting by Shubham Batra and Shashwat Chauhan in Bengaluru; Editing by Dhanya Ann Thoppil, Saumyadeb Chakrabarty, Vinay Dwivedi and David Gregorio)
((caroline.valetkevitch@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Shares of American AirlinesAAL.O rose 0.8% after the company posted upbeat quarterly results. By Caroline Valetkevitch NEW YORK, Oct 19 (Reuters) - U.S. stocks ended solidly lower on Thursday, with shares of Tesla fallingafter its results and Treasury yields surging as Federal Reserve Chair Jerome Powell spoke about monetary policy and investors worried whether interest rates would stay higher for longer. TeslaTSLA.O shares dropped a day after the carmaker missed Wall Street expectations on third-quarter gross margin, profit and revenue, and its CEO Elon Musk said he was concerned about high interest rates affecting demand.
|
Shares of American AirlinesAAL.O rose 0.8% after the company posted upbeat quarterly results. The Dow Jones Industrial Average .DJI fell 250.91 points, or 0.75%, to 33,414.17, the S&P 500 .SPX lost 36.6 points, or 0.85%, to 4,278 and the Nasdaq Composite .IXIC dropped 128.13 points, or 0.96%, to 13,186.18. On Wednesday, airline stocks fell sharply after United Airlines UAL.O forecast current-quarter profit below analyst expectations.
|
Shares of American AirlinesAAL.O rose 0.8% after the company posted upbeat quarterly results. By Caroline Valetkevitch NEW YORK, Oct 19 (Reuters) - U.S. stocks ended solidly lower on Thursday, with shares of Tesla fallingafter its results and Treasury yields surging as Federal Reserve Chair Jerome Powell spoke about monetary policy and investors worried whether interest rates would stay higher for longer. TeslaTSLA.O shares dropped a day after the carmaker missed Wall Street expectations on third-quarter gross margin, profit and revenue, and its CEO Elon Musk said he was concerned about high interest rates affecting demand.
|
Shares of American AirlinesAAL.O rose 0.8% after the company posted upbeat quarterly results. Treasury yields rose further and the benchmark 10-year note yield was at a 16-year high of almost 5%. The labor market is showing strength even though the central bank has raised its benchmark overnight interest rate by 525 basis points since March 2022.
|
2148.0
|
2023-10-19 00:00:00 UTC
|
American Airlines (AAL) Beats on Q3 Earnings, Cuts FY23 View
|
AAL
|
https://www.nasdaq.com/articles/american-airlines-aal-beats-on-q3-earnings-cuts-fy23-view
|
nan
|
nan
|
American Airlines’ AAL third-quarter 2023 earnings (excluding $1.21 from non-recurring items) of 38 cents per share easily beat the Zacks Consensus Estimate of 26 cents. Results were aided by higher revenues driven by the buoyant air-travel-demand scenario. In the year-ago quarter, AAL reported earnings of 69 cents.
Operating revenues of $13,482 million increased marginally year over year. The top line missed the Zacks Consensus Estimate of $13,518.7 million. Passenger revenues, accounting for 92.1% of the top line, increased to $12,421 million from $12,396 million a year ago. The metric fell short of our estimate of $12,473.5 million.
Cargo revenues decreased 30.9% to $193 million. Other revenues jumped 10.4% to $868 million, also ahead of our expectation of $855.9 million.
More on Q3 Earnings Report
Total revenue per available seat miles (a key measure of unit revenue: TRASM) decreased to 18.4 cents from 19.63 cents a year ago. Passenger revenue per available seat miles (PRASM) decreased 6.3% to 16.95 cents. The actual PRASM figure was less than our expectation of 17.09 cents. Consolidated yield decreased 4.8% to 20.18 cents.
Reflecting the boost in air-travel demand, consolidated traffic (measured in revenue passenger miles) rose to 61,561 million from 58,499 million a year ago. To cater to this increased demand, capacity (measured in average seat miles) expanded to 73,285 million from 68,567 million.
Consolidated load factor (percentage of seats filled by passengers) inched down 1.3 points to 84%. However, the actual figure for load factor was higher than our expectation of 83.4%.
Total operating costs (on a reported basis) increased 9.4% year over year to $13,705 million, with expenses on salaries, wages and benefits rising to $3,974 million from $3,384 million a year ago. Average fuel price per gallon (including related taxes) tumbled to $2.91 from $3.73 a year ago. Consolidated operating costs per available seat mile (excluding fuel and special items) increased 3.3% to 13.02 cents. The actual figure was less than our estimate of 13.16 cents. Fuel gallon consumption increased 6.9% to $1,102 million in third-quarter 2023.
American Airlines, currently carrying a Zacks Rank #3 (Hold), exited the quarter with $13.5 billion of total available liquidity. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Outlook
Management expects fourth-quarter 2023 TRASM to be between 5.5% and 7.5%, lower than fourth-quarter 2022 actuals. System capacity for the December-end quarter is estimated to increase 4.5-6.5% from fourth-quarter 2022 levels.
Fuel cost per gallon is projected in the range of $3.01-$3.11 for fourth-quarter 2023. Fuel gallon consumption is forecast to be $1,050 million. The adjusted operating margin in the December-end quarter is anticipated to be 2-4%.
The company envisions total non-operating expenses to be $400 million for the fourth quarter. Cost per available seat miles (adjusted) is estimated to increase 5-7%. AAL projects the December-end quarter's earnings per share (excluding net special items) to be approximately breakeven using a share count of 658.9 million shares. The Zacks Consensus Estimate is pegged at 15 cents.
Management anticipates 2023 capacity to improve 6.5% year over year. TRASM for the full year is expected to be up approximately 1% from 2022 actuals. The adjusted operating margin for 2023 is estimated to be 7% range.
Cost per available seat miles (adjusted) is expected to increase 3% in 2023. AAL expects a provision for income taxes at an effective rate of approximately 25% for the full year, which is expected to be substantially non-cash.
The company now expects 2023 earnings (on an adjusted basis) in the band of $2.25-$2.5 per share (earlier view was in the $3-$3.75 range). The Zacks Consensus Estimate of $2.31 lies below the mid-point of the guided range.
Performances of Other Transportation Companies
Delta Air Lines DAL reported third-quarter 2023 earnings (excluding 31 cents from non-recurring items) of $2.03 per share, which comfortably beat the Zacks Consensus Estimate of $1.92 and improved 35% on a year-over-year basis.
Revenues of $15,488 million beat the Zacks Consensus Estimate of $15,290.4 million and increased 11% on a year-over-year basis, driven by higher air travel demand. Adjusted operating revenues (excluding third-party refinery sales) came in at $14,553 million, up 13% year over year.
J.B. Hunt Transport Services' JBHT third-quarter 2023 earnings per share of $1.80 missed the Zacks Consensus Estimate of $1.85 and declined 30% year over year.
JBHT’s total operating revenues of $3,163 million also lagged the Zacks Consensus Estimate of $3,224 million and fell 17.6% year over year. Results were hurt by falling freight rates. There was a 38% fall in volumes in JBHT's freight brokerage integrated capacity solutions segment and a 20% dip in stops in its final miles services business.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s credited with a “watershed medical breakthrough” and is developing a bustling pipeline of other projects that could make a world of difference for patients suffering from diseases involving the liver, lungs, and blood. This is a timely investment that you can catch while it emerges from its bear market lows.
It could rival or surpass other recent Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report
J.B. Hunt Transport Services, Inc. (JBHT) : Free Stock Analysis Report
American Airlines Group Inc. (AAL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
American Airlines’ AAL third-quarter 2023 earnings (excluding $1.21 from non-recurring items) of 38 cents per share easily beat the Zacks Consensus Estimate of 26 cents. In the year-ago quarter, AAL reported earnings of 69 cents. AAL projects the December-end quarter's earnings per share (excluding net special items) to be approximately breakeven using a share count of 658.9 million shares.
|
American Airlines’ AAL third-quarter 2023 earnings (excluding $1.21 from non-recurring items) of 38 cents per share easily beat the Zacks Consensus Estimate of 26 cents. Click to get this free report Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report J.B. Hunt Transport Services, Inc. (JBHT) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. In the year-ago quarter, AAL reported earnings of 69 cents.
|
American Airlines’ AAL third-quarter 2023 earnings (excluding $1.21 from non-recurring items) of 38 cents per share easily beat the Zacks Consensus Estimate of 26 cents. In the year-ago quarter, AAL reported earnings of 69 cents. AAL projects the December-end quarter's earnings per share (excluding net special items) to be approximately breakeven using a share count of 658.9 million shares.
|
American Airlines’ AAL third-quarter 2023 earnings (excluding $1.21 from non-recurring items) of 38 cents per share easily beat the Zacks Consensus Estimate of 26 cents. In the year-ago quarter, AAL reported earnings of 69 cents. AAL projects the December-end quarter's earnings per share (excluding net special items) to be approximately breakeven using a share count of 658.9 million shares.
|
2149.0
|
2023-10-19 00:00:00 UTC
|
Stocks Pressured as Bond Yields Continue to Climb
|
AAL
|
https://www.nasdaq.com/articles/stocks-pressured-as-bond-yields-continue-to-climb
|
nan
|
nan
|
What you need to know…
The S&P 500 Index ($SPX) (SPY) today is down -0.26%, the Dow Jones Industrials Index ($DOWI) (DIA) is down -0.42%, and the Nasdaq 100 Index ($IUXX) (QQQ) is up +0.13%.
Stocks this morning are mixed. The broader market is under pressure as the 10-year T-note yield rose to a 16-year high today after an unexpected decline in weekly U.S. jobless claims to an 8-3/4 month low showed labor market strength that may keep the Fed raising interest rates higher for longer. The markets are awaiting comments from Fed Chair Power at the Economic Club of New York later this morning.
Corporate quarterly earnings results are mixed for the market. On the positive side, Netflix is up more than +15% after it reported a larger-than-expected increase in Q3 streaming paid memberships. Also, AT&T and American Airlines Group are up more than +4% after reporting better-than-expected Q3 EPS. On the negative side, Tesla is down more than -8% after reporting weaker-than-expected Q3 EPS.
In the Middle East, United Nations Secretary-General Guterres is traveling to Egypt today, and UK Prime Minister Sunak is in Israel today to meet Israeli leaders before heading to a “number of other regional capitals” as global leaders attempt to keep the Israeli-Hamas war from widening.
U.S. weekly initial unemployment claims unexpectedly fell -13,000 to an 8-3/4 month low of 198,000, showing a stronger labor market than expectations of an increase to 210,000.
The U.S. Oct Philadelphia Fed business outlook survey rose +4.5 to -9.0, weaker than expectations of -7.0.
U.S. Sep existing home sales fell -2.0% m/m to a 13-year low of 3.96 million, although above expectations of 3.89 million.
U.S. Sep leading indicators fell -0.7% m/m, weaker than expectations of -0.4% m/m and the biggest decline in 4 months.
The markets are discounting an 8% chance that the FOMC will raise the funds rate by +25 bp at the next FOMC meeting that ends on November 1, and a 39% chance for that +25 bp rate hike at the following meeting that ends on December 13. The markets are then expecting the FOMC to begin cutting rates in the second half of 2024 in response to an expected slowdown in the U.S. economy.
U.S. and European bond yields are mixed. The 10-year T-note yield rose to a 16-year high of 4.981% and is up +2.4 bp at 4.939%. The 10-year German bund yield rose to a 2-week high of 2.961% and is up +1.2 bp at 2.937%. The 10-year UK gilt yield rose to a 1-3/4 month high of 4.722% and is up +2.8 bp at 4.685%.
Overseas stock markets are lower. The Euro Stoxx 50 is down -0.43%. China’s Shanghai Composite Index closed down -1.74%. Japan’s Nikkei 225 today closed down -1.91%.
Today’s stock movers…
Netflix (NFLX) is up more than +14% to lead gainers in the S&P 500 and Nasdaq 100 after reporting Q3 streaming paid memberships of +247.15 million, well above the consensus of +244.41 million.
AT&T (T) is up more than +6% in pre-market trading after reporting Q3 free cash flow of $5.2 billion, above the consensus of $4.6 billion.
Union Pacific (UNP) is up more than +5% after reporting Q3 EPS of $2.51, stronger than the consensus of $2.41.
Las Vegas Sands (LVS) climbed more than +5% in pre-market trading after reporting Q3 adjusted property Ebitda of $1.12 billion, above the consensus of $1.06 billion, and its board of directors authorized a $2 billion stock buyback program.
American Airlines Group (AAL) is up more than +3% after reporting Q3 adjusted EPS of 38 cents, stronger than the consensus of 25 cents.
Truist Financial (TFC) is up more than +3% after reporting Q3 net interest margin of 2.95%, better than the consensus of 2.82%.
Fifth Third Bancorp (FITB) is up more than +2% after reporting Q3 net interest income of $1.45 billion, above the consensus of $1.43 billion.
Best Buy (BBY) is up more than +1% after Goldman Sachs upgraded the stock to buy from neutral with a price target of $85.
Tesla (TSLA) is down more than -8% to lead losers in the Nasdaq 100 after reporting Q3 EPS of 66 cents, below the consensus of 74 cents, with gross margins of 17.9%, weaker than the consensus of 18%.
Genuine Parts (GPC) is down more than -8% after reporting Q3 net sales of $5.80 billion, weaker than the consensus of $5.94 billion.
Discover Financial Services (DFS) is down more than -8% after reporting Q3 EPS of $2.59, well below the consensus of $3.17.
Rollins Inc (ROL) is down more than -9% to lead losers in the S&P 500 after peer Rentokil Initial reported weaker consumer demand for its pest control business in the U.S.
Lam Research (LRCX) is down more than -5% after reporting Q1 customer support-related revenue of $1.43 billion, weaker than the consensus of $1.51 billion.
Zions Bancorp (ZION) is down more than -4% after reporting Q3 total deposits of $75.40 billion, below the consensus of $76.51 billion.
Blackstone (BX) is down more than -4% after reporting Q3 distributable income/share of 94 cents, weaker than the consensus of $1.01.
Crown Castle (CCI) is down more than -3% after reporting Q3 net revenue of $1.67 billion, weaker than the consensus of $1.69 billion.
Across the markets…
December 10-year T-notes (ZNZ23) this morning are down -9 ticks, and the 10-year T-note yield is up +2.4 bp at 4.939%. Dec T-notes today fell to a 16-year nearest-futures low, and the 10-year T-note yield climbed to a 16-year high of 4.981%. T-notes are under pressure today after weekly U.S. jobless claims unexpectedly fell to an 8-3/4 month low, which signals labor market strength that is hawkish for Fed policy. Also, an increase in inflation expectations is bearish for T-notes after the 10-year breakeven inflation rate today climbed to a 2-3/4 month high of 2.454%. T-notes recovered from their worst levels after U.S. Sep leading indicators fell more than expected and Sep existing home sales fell to a 13-year low.
The dollar index (DXY00) today is down by -0.21%. The dollar is falling today as a steady stock market has reduced the liquidity demand for the dollar. The dollar was also undercut by today’s weak economic reports that included Sep leading indicators and existing home sales. Losses in the dollar are limited after the 10-year T-note yield climbed to a 16-year high, which strengthened the dollar’s interest rate differentials.
EUR/USD (^EURUSD) today is up by +0.35%. The euro today is moving higher on weakness in the dollar. Gains were limited after today’s economic news showed French Oct business confidence fell more than expected to a 2-1/2 year low.
French Oct business confidence fell -2 to a 2-1/2 year low of 98, weaker than expectations of 99.
USD/JPY (^USDJPY) today is down by -0.07%. The yen today is moving higher after the BOJ upgraded its economic assessments for the most regions in Japan in more than a year, a sign of growing confidence in Japan’s recovery. Also, higher Japanese government bond yields strengthened the yen after the 10-year JGB bond yield today rose to a 10-year high of 0.851%. Gains in the yen were contained by higher T-note yields after the 10-year T-note yield climbed to a 16-year high.
In a quarterly report today, the BOJ upgraded its economic assessments for the most regions in more than a year, a sign of growing confidence in Japan’s recovery. The BOJ raised its economic view for six of nine areas in Japan and kept the other three regions unchanged.
December gold (GCZ3) today is down -5.0 (-0.25%), and Dec silver (SIZ23) is down -0.219 (-0.95%). Precious metals prices this morning are moderately lower. Higher global bond yields today are weighing on precious metals. Also, the unexpected decline in U.S. weekly jobless claims to an 8-3/4 moth low pressured metals prices on concern that labor market strength could keep the Fed raising interest rates higher for longer. Losses in precious metals are limited by today’s weakness in the dollar. Also, gold found support after the 10-year U.S. breakeven inflation rate today rose to a 2-3/4 month high, which boosted demand for gold as an inflation hedge. In addition, concerns about the escalation of the Israeli-Hamas conflict have boosted the safe-haven demand for precious.
More Stock Market News from Barchart
What’s Worse Than the Dot Com Crash? The Bond Market!
Markets Today: Stocks Move Lower on Higher Bond Yields
Options Insight: Bear Call Spread Screener Results for October 19th
Nasdaq Futures Climb on Upbeat Netflix Results, Powell Speech in Focus
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
American Airlines Group (AAL) is up more than +3% after reporting Q3 adjusted EPS of 38 cents, stronger than the consensus of 25 cents. T-notes are under pressure today after weekly U.S. jobless claims unexpectedly fell to an 8-3/4 month low, which signals labor market strength that is hawkish for Fed policy. In a quarterly report today, the BOJ upgraded its economic assessments for the most regions in more than a year, a sign of growing confidence in Japan’s recovery.
|
American Airlines Group (AAL) is up more than +3% after reporting Q3 adjusted EPS of 38 cents, stronger than the consensus of 25 cents. The broader market is under pressure as the 10-year T-note yield rose to a 16-year high today after an unexpected decline in weekly U.S. jobless claims to an 8-3/4 month low showed labor market strength that may keep the Fed raising interest rates higher for longer. Gains were limited after today’s economic news showed French Oct business confidence fell more than expected to a 2-1/2 year low.
|
American Airlines Group (AAL) is up more than +3% after reporting Q3 adjusted EPS of 38 cents, stronger than the consensus of 25 cents. The broader market is under pressure as the 10-year T-note yield rose to a 16-year high today after an unexpected decline in weekly U.S. jobless claims to an 8-3/4 month low showed labor market strength that may keep the Fed raising interest rates higher for longer. Rollins Inc (ROL) is down more than -9% to lead losers in the S&P 500 after peer Rentokil Initial reported weaker consumer demand for its pest control business in the U.S. Lam Research (LRCX) is down more than -5% after reporting Q1 customer support-related revenue of $1.43 billion, weaker than the consensus of $1.51 billion.
|
American Airlines Group (AAL) is up more than +3% after reporting Q3 adjusted EPS of 38 cents, stronger than the consensus of 25 cents. EUR/USD (^EURUSD) today is up by +0.35%. USD/JPY (^USDJPY) today is down by -0.07%.
|
2150.0
|
2023-10-19 00:00:00 UTC
|
Weekly Jobless Claims Fall Below Expectations
|
AAL
|
https://www.nasdaq.com/articles/weekly-jobless-claims-fall-below-expectations
|
nan
|
nan
|
Pre-market futures have plenty to digest this morning, both on the economic data side and in the continuation of Q3 earnings releases, but they appear to be doing so with a fair amount of cheer. We’re now slightly in the green after being slightly in the red prior to these reports. Currently, the Dow is +22 points, the S&P 500 is +8 and the Nasdaq +62 points.
Initial Jobless Claims continue to portray an historically robust labor market, sinking below 200K again when many analysts were expecting a track back up to 250K or so: 198K new jobless claims is the lowest week since January of this year. They are also notably down from an upwardly revised 211K posted for the previous week.
Continuing Claims, on the other hand, did reach their highest level since June: 1.734 million was a jump higher from 1.705 million revised from the previous week. These figures are always reported a week behind new claims, and even at this somewhat hotter level, we’re still on very solid ground in terms of workforce on this data.
They also bear out from the still-healthy monthly jobs numbers, although those have slowed notably since the Great Reopening — these jobless claims figures have not. Employers tend to hang onto their personnel these days, and if they are let go, these folks appear to be finding new employment (or are retiring, perhaps early) relatively quickly.
The new Philly Fed manufacturing index for October reached -9, slightly below the -6.8 analysts had been looking for, but better than the -13.5 reported the previous month. This makes 10 of the last 11 months posting negative manufacturing numbers for the 6th largest city in the U.S., with only August putting up a +12.
Bond yields remain high this morning, as well — perhaps a telling factor in the pre-market selling we’d seen earlier, carrying over from a sell-off in the markets yesterday — with the 2-year now up to 5.24% and the 10-year getting ever-closer to 5%: 4.96%. In bank earnings so far for Q3, we’ve not seen these bond numbers hampering quarterly results, but for regular investment folk, these are presenting a clear alternative to equities, especially among the risk-averse.
Speaking of banks, Fifth Third Bank FITB posted Q3 results this morning that outperformed expectations: earnings of 92 cents per share beat the Zacks consensus by a solid dime — making it three of the past four quarters of positive earnings surprises — on $2.15 billion in quarterly revenues which came up a smidge short of estimates: -0.09%. This is four straight negative surprises on the revenue side, although this was about as close to on the money as one can get.
American Airlines AAL also outperformed expectations on its bottom line: earnings of 38 cents per share improved over the 26 cents estimate, although revenues missed the Zacks consensus by -0.27% to $13.48 billion. While the company did cut profit guidance on higher labor and fuel costs, they also see strong holiday bookings, which may portend to an improved Q4.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s credited with a “watershed medical breakthrough” and is developing a bustling pipeline of other projects that could make a world of difference for patients suffering from diseases involving the liver, lungs, and blood. This is a timely investment that you can catch while it emerges from its bear market lows.
It could rival or surpass other recent Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Fifth Third Bancorp (FITB) : Free Stock Analysis Report
American Airlines Group Inc. (AAL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
American Airlines AAL also outperformed expectations on its bottom line: earnings of 38 cents per share improved over the 26 cents estimate, although revenues missed the Zacks consensus by -0.27% to $13.48 billion. Click to get this free report Fifth Third Bancorp (FITB) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. Bond yields remain high this morning, as well — perhaps a telling factor in the pre-market selling we’d seen earlier, carrying over from a sell-off in the markets yesterday — with the 2-year now up to 5.24% and the 10-year getting ever-closer to 5%: 4.96%.
|
American Airlines AAL also outperformed expectations on its bottom line: earnings of 38 cents per share improved over the 26 cents estimate, although revenues missed the Zacks consensus by -0.27% to $13.48 billion. Click to get this free report Fifth Third Bancorp (FITB) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. Speaking of banks, Fifth Third Bank FITB posted Q3 results this morning that outperformed expectations: earnings of 92 cents per share beat the Zacks consensus by a solid dime — making it three of the past four quarters of positive earnings surprises — on $2.15 billion in quarterly revenues which came up a smidge short of estimates: -0.09%.
|
Click to get this free report Fifth Third Bancorp (FITB) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines AAL also outperformed expectations on its bottom line: earnings of 38 cents per share improved over the 26 cents estimate, although revenues missed the Zacks consensus by -0.27% to $13.48 billion. Initial Jobless Claims continue to portray an historically robust labor market, sinking below 200K again when many analysts were expecting a track back up to 250K or so: 198K new jobless claims is the lowest week since January of this year.
|
American Airlines AAL also outperformed expectations on its bottom line: earnings of 38 cents per share improved over the 26 cents estimate, although revenues missed the Zacks consensus by -0.27% to $13.48 billion. Click to get this free report Fifth Third Bancorp (FITB) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. Continuing Claims, on the other hand, did reach their highest level since June: 1.734 million was a jump higher from 1.705 million revised from the previous week.
|
2151.0
|
2023-10-19 00:00:00 UTC
|
Jobless Claims Sub-200K; AAL, FITB Mixed in Q3
|
AAL
|
https://www.nasdaq.com/articles/jobless-claims-sub-200k-aal-fitb-mixed-in-q3
|
nan
|
nan
|
Pre-market futures have plenty to digest this morning, both on the economic data side and in the continuation of Q3 earnings releases, but they appear to be doing so with a fair amount of cheer. We’re now slightly in the green after being slightly in the red prior to these reports. Currently, the Dow is +22 points, the S&P 500 is +8 and the Nasdaq +62 points.
Initial Jobless Claims continue to portray an historically robust labor market, sinking below 200K again when many analysts were expecting a track back up to 250K or so: 198K new jobless claims is the lowest week since January of this year. They are also notably down from an upwardly revised 211K posted for the previous week.
Continuing Claims, on the other hand, did reach their highest level since June: 1.734 million was a jump higher from 1.705 million revised from the previous week. These figures are always reported a week behind new claims, and even at this somewhat hotter level, we’re still on very solid ground in terms of workforce on this data.
They also bear out from the still-healthy monthly jobs numbers, although those have slowed notably since the Great Reopening — these jobless claims figures have not. Employers tend to hang onto their personnel these days, and if they are let go, these folks appear to be finding new employment (or are retiring, perhaps early) relatively quickly.
The new Philly Fed manufacturing index for October reached -9, slightly below the -6.8 analysts had been looking for, but better than the -13.5 reported the previous month. This makes 10 of the last 11 months posting negative manufacturing numbers for the 6th largest city in the U.S., with only August putting up a +12.
Bond yields remain high this morning, as well — perhaps a telling factor in the pre-market selling we’d seen earlier, carrying over from a sell-off in the markets yesterday — with the 2-year now up to 5.24% and the 10-year getting ever-closer to 5%: 4.96%. In bank earnings so far for Q3, we’ve not seen these bond numbers hampering quarterly results, but for regular investment folk, these are presenting a clear alternative to equities, especially among the risk-averse.
Speaking of banks, Fifth Third Bank FITB posted Q3 results this morning that outperformed expectations: earnings of 92 cents per share beat the Zacks consensus by a solid dime — making it three of the past four quarters of positive earnings surprises — on $2.15 billion in quarterly revenues which came up a smidge short of estimates: -0.09%. This is four straight negative surprises on the revenue side, although this was about as close to on the money as one can get. For more on FITB’s earnings, click here.
American Airlines AAL also outperformed expectations on its bottom line: earnings of 38 cents per share improved over the 26 cents estimate, although revenues missed the Zacks consensus by -0.27% to $13.48 billion. While the company did cut profit guidance on higher labor and fuel costs, they also see strong holiday bookings, which may portend to an improved Q4. For more on AAL’s earnings, click here.
Questions or comments about this article and/or author? Click here>>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s credited with a “watershed medical breakthrough” and is developing a bustling pipeline of other projects that could make a world of difference for patients suffering from diseases involving the liver, lungs, and blood. This is a timely investment that you can catch while it emerges from its bear market lows.
It could rival or surpass other recent Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Fifth Third Bancorp (FITB) : Free Stock Analysis Report
American Airlines Group Inc. (AAL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
American Airlines AAL also outperformed expectations on its bottom line: earnings of 38 cents per share improved over the 26 cents estimate, although revenues missed the Zacks consensus by -0.27% to $13.48 billion. For more on AAL’s earnings, click here. Click to get this free report Fifth Third Bancorp (FITB) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here.
|
American Airlines AAL also outperformed expectations on its bottom line: earnings of 38 cents per share improved over the 26 cents estimate, although revenues missed the Zacks consensus by -0.27% to $13.48 billion. Click to get this free report Fifth Third Bancorp (FITB) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. For more on AAL’s earnings, click here.
|
American Airlines AAL also outperformed expectations on its bottom line: earnings of 38 cents per share improved over the 26 cents estimate, although revenues missed the Zacks consensus by -0.27% to $13.48 billion. Click to get this free report Fifth Third Bancorp (FITB) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. For more on AAL’s earnings, click here.
|
Click to get this free report Fifth Third Bancorp (FITB) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines AAL also outperformed expectations on its bottom line: earnings of 38 cents per share improved over the 26 cents estimate, although revenues missed the Zacks consensus by -0.27% to $13.48 billion. For more on AAL’s earnings, click here.
|
2152.0
|
2023-10-19 00:00:00 UTC
|
Markets Today: Stocks Move Lower on Higher Bond Yields
|
AAL
|
https://www.nasdaq.com/articles/markets-today%3A-stocks-move-lower-on-higher-bond-yields
|
nan
|
nan
|
Morning Markets
The S&P 500 Index ($SPX) (SPY) is down -0.34%, the Dow Jones Industrials Index ($DOWI) (DIA) is down -0.44%, and the Nasdaq 100 Index ($IUXX) (QQQ) is down -0.14%.
Stock index futures this morning are moderately lower. Higher T-note yields are negative for stocks. The 10-year T-note yield climbed to a new 16-year high today after an unexpected decline in U.S. weekly jobless claims to an 8-3/4 month low bolstered the outlook for the Fed to keep interest rates higher for longer.
Netflix is up more than +15% in pre-market trading after it reported a larger-than-expected increase in Q3 streaming paid memberships. Also, American Airlines Group is up more than +3% after reporting Q3 adjusted EPS above the consensus. On the negative side, Tesla is down more than -8% after reporting weaker-than-expected Q3 EPS.
In the Middle East, United Nations Secretary-General Guterres is traveling to Egypt today, and UK Prime Minister Sunak is in Israel today to meet Israeli leaders before heading to a “number of other regional capitals” as global leaders attempt to keep the Israeli-Hamas war from widening.
U.S. weekly initial unemployment claims unexpectedly fell -13,000 to an 8-3/4 month low of 198,000, showing a stronger labor market than expectations of an increase to 210,000.
The U.S. Oct Philadelphia Fed business outlook survey rose +4.5 to -9.0, weaker than expectations of -7.0.
The markets are discounting an 8% chance that the FOMC will raise the funds rate by +25 bp at the next FOMC meeting that ends on November 1, and a 43% chance for that +25 bp rate hike at the following meeting that ends on December 13. The markets are then expecting the FOMC to begin cutting rates in the second half of 2024 in response to an expected slowdown in the U.S. economy.
U.S. and European bond yields are mixed. The 10-year T-note yield rose to a 16-year high of 4.981% and is up +2.4 bp at 4.939%. The 10-year German bund yield fell from a 2-week high of 2.961% and is down -0.9 bp at 2.915%. The 10-year UK gilt yield rose to a 1-3/4 month high of 4.722% and is up +1.4 bp at 4.671%.
Overseas stock markets are mixed. The Euro Stoxx 50 is down -0.16%. China’s Shanghai Composite Index closed down -0.80%. Japan’s Nikkei 225 today closed up +0.01%.
The Euro Stoxx 50 today fell to a 2-week low and is moderately lower as concerns that interest rates will remain higher for longer are pushing government bond yields higher and weighing on stocks. The 10-year UK gilt yield climbed to a 1-3/4 month high, and the 10-year German bund yield rose to a 2-week high. Weaker-than-expected corporate quarterly earnings results also weigh on stocks, as Roche Holding AG falls more than -4% to lead pharmaceutical stocks lower after reporting declining quarterly revenue. Also, Nestle SA is down more than -1% after reporting the slowest sales growth in almost three years.
French Oct business confidence fell -2 to a 2-1/2 year low of 98, weaker than expectations of 99.
China’s Shanghai Composite Stock Index today dropped to an 11-1/2 month low and closed moderately lower. Persistent weakness in China’s property market remains a drag on China’s economy as government action to stabilize the property sector has shown little effect. Property developers sold off and led the overall market lower after today’s news showed China’s Sep new home prices fell by the most in 11 months. Also, property investment, a key driver of economic activity, contracted -9.1% from January to September from a year ago, a bigger drop than in the first eight months of the year. Chinese electric vehicle makers also closed lower today, pressured by weaker-than-expected earnings from Tesla.
China Sep new home prices fell -0.30% m/m, the biggest decline in 11 months.
Japan’s Nikkei Stock Index today fell to a 1-week low and posted moderate losses. Soaring T-Note yields are undercutting stocks as the 10-year T-note yield jumped to a 16-year high on concerns the Fed will keep interest rates higher for longer. The increase in T-note yields also helped push Japanese government bond yields higher as the 10-year JGB bond yield rose to a 10-year high today at 0.851%. Japanese chip equipment stocks declined today after ASML Holding NV said orders plunged in Q3 amid a sector-wide slump in the semiconductor industry. On the positive side, Japanese cosmetics makers that benefit from tourism rose after data showed spending by foreign tourists beat pre-pandemic levels in September due to the weak yen.
In a quarterly report today, the BOJ upgraded its economic assessments for the most regions in more than a year, a sign of growing confidence in Japan’s recovery. The BOJ raised its economic view for six of nine areas in Japan and kept the other three regions unchanged.
Pre-Market U.S. Stock Movers
Tesla (TSLA) tumbled more than -5% in pre-market trading after reporting Q3 EPS of 66 cents, below the consensus of 74 cents, with gross margins of 17.9%, weaker than the consensus of 18%.
Lam Research (LRCX) dropped more than -3% in pre-market trading after reporting Q1 customer support-related revenue of $1.43 billion, weaker than the consensus of $1.51 billion.
VMWare (VMW) sank more than -6% in pre-market trading after the Financial Times reported that Chinese regulators may hold up Broadcom’s acquisition of the company.
Blackstone (BX) tumbled more than -4% in pre-market trading after reporting Q3 distributable income/share of 94 cents, weaker than the consensus of $1.01.
Equifax (EFX) sank more than -7 % in pre-market trading after reporting Q3 operating revenue of $1.32 billion, below the consensus of $1.33 billion, and cut its full-year revenue forecast to $5.25 billion-$5.27 billion from a prior view of $5.27 billion-$5.33 billion, weaker than the consensus of $5.29 billion.
Zions Bancorp (ZION) tumbled more than -5% in pre-market trading after reporting Q3 total deposits of $75.40 billion, below the consensus of $76.51 billion.
Crown Castle (CCI) dropped more than -3% in pre-market trading after reporting Q3 net revenue of $1.67 billion, weaker than the consensus of $1.69 billion.
Graphic Packaging Holding (GPK) fell more than -4% in pre-market trading after Wells Fargo Securities downgraded the stock to underweight from overweight with a price target of $19.
Fortinet (FTNT) fell more than -1% in pre-market trading after Jeffries downgraded the stock to hold from buy.
Netflix (NFLX) jumped more than +12% in pre-market trading after reporting Q3 streaming paid memberships of +247.15 million, well above the consensus of +244.41 million.
Las Vegas Sands (LVS) climbed more than +5% in pre-market trading after reporting Q3 adjusted property Ebitda of $1.12 billion, above the consensus of $1.06 billion, and its board of directors authorized a $2 billion stock buyback program.
AT&T (T) climbed more than +3% in pre-market trading after reporting Q3 free cash flow of $5.2 billion, above the consensus of $4.6 billion.
American Airlines Group (AAL) is up more than +2% in pre-market trading after reporting Q3 adjusted EPS of 38 cents, stronger than the consensus of 25 cents.
Crowdstrike Holdings (CRWD) and Zscaler (ZS) are up more than +2% in pre-market trading after Jeffries upgraded the stocks to buy from hold.
Best Buy (BBY) rose more than +2% in pre-market trading after Goldman Sachs upgraded the stock to buy from neutral with a price target of $85.
First Industrial Realty (FR) rose more than +1% in pre-market trading after reporting Q3 revenue of $155.1 million, better than the consensus of $152.5 million.
Earnings Reports (10/19/2023)
Alaska Air Group Inc (ALK), American Airlines Group Inc (AAL), AT&T Inc (T), Blackstone Inc (BX), CSX Corp (CSX), Fifth Third Bancorp (FITB), Freeport-McMoRan Inc (FCX), Genuine Parts Co (GPC), Intuitive Surgical Inc (ISRG), KeyCorp (KEY), Marsh & McLennan Cos Inc (MMC), Philip Morris International In (PM), Pool Corp (POOL), Snap-on Inc (SNA), Truist Financial Corp (TFC), Union Pacific Corp (UNP).
More Stock Market News from Barchart
Options Insight: Bear Call Spread Screener Results for October 19th
Nasdaq Futures Climb on Upbeat Netflix Results, Powell Speech in Focus
Stocks Close Lower on Heightened Geopolitical Risks and Soaring Bond Yields
Households Might Be Wealthier. Just Don’t Tell Winnebago and the Rest of the RV Stocks
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
American Airlines Group (AAL) is up more than +2% in pre-market trading after reporting Q3 adjusted EPS of 38 cents, stronger than the consensus of 25 cents. Earnings Reports (10/19/2023) Alaska Air Group Inc (ALK), American Airlines Group Inc (AAL), AT&T Inc (T), Blackstone Inc (BX), CSX Corp (CSX), Fifth Third Bancorp (FITB), Freeport-McMoRan Inc (FCX), Genuine Parts Co (GPC), Intuitive Surgical Inc (ISRG), KeyCorp (KEY), Marsh & McLennan Cos Inc (MMC), Philip Morris International In (PM), Pool Corp (POOL), Snap-on Inc (SNA), Truist Financial Corp (TFC), Union Pacific Corp (UNP). The 10-year T-note yield climbed to a new 16-year high today after an unexpected decline in U.S. weekly jobless claims to an 8-3/4 month low bolstered the outlook for the Fed to keep interest rates higher for longer.
|
American Airlines Group (AAL) is up more than +2% in pre-market trading after reporting Q3 adjusted EPS of 38 cents, stronger than the consensus of 25 cents. Earnings Reports (10/19/2023) Alaska Air Group Inc (ALK), American Airlines Group Inc (AAL), AT&T Inc (T), Blackstone Inc (BX), CSX Corp (CSX), Fifth Third Bancorp (FITB), Freeport-McMoRan Inc (FCX), Genuine Parts Co (GPC), Intuitive Surgical Inc (ISRG), KeyCorp (KEY), Marsh & McLennan Cos Inc (MMC), Philip Morris International In (PM), Pool Corp (POOL), Snap-on Inc (SNA), Truist Financial Corp (TFC), Union Pacific Corp (UNP). The Euro Stoxx 50 today fell to a 2-week low and is moderately lower as concerns that interest rates will remain higher for longer are pushing government bond yields higher and weighing on stocks.
|
American Airlines Group (AAL) is up more than +2% in pre-market trading after reporting Q3 adjusted EPS of 38 cents, stronger than the consensus of 25 cents. Earnings Reports (10/19/2023) Alaska Air Group Inc (ALK), American Airlines Group Inc (AAL), AT&T Inc (T), Blackstone Inc (BX), CSX Corp (CSX), Fifth Third Bancorp (FITB), Freeport-McMoRan Inc (FCX), Genuine Parts Co (GPC), Intuitive Surgical Inc (ISRG), KeyCorp (KEY), Marsh & McLennan Cos Inc (MMC), Philip Morris International In (PM), Pool Corp (POOL), Snap-on Inc (SNA), Truist Financial Corp (TFC), Union Pacific Corp (UNP). Pre-Market U.S. Stock Movers Tesla (TSLA) tumbled more than -5% in pre-market trading after reporting Q3 EPS of 66 cents, below the consensus of 74 cents, with gross margins of 17.9%, weaker than the consensus of 18%.
|
American Airlines Group (AAL) is up more than +2% in pre-market trading after reporting Q3 adjusted EPS of 38 cents, stronger than the consensus of 25 cents. Earnings Reports (10/19/2023) Alaska Air Group Inc (ALK), American Airlines Group Inc (AAL), AT&T Inc (T), Blackstone Inc (BX), CSX Corp (CSX), Fifth Third Bancorp (FITB), Freeport-McMoRan Inc (FCX), Genuine Parts Co (GPC), Intuitive Surgical Inc (ISRG), KeyCorp (KEY), Marsh & McLennan Cos Inc (MMC), Philip Morris International In (PM), Pool Corp (POOL), Snap-on Inc (SNA), Truist Financial Corp (TFC), Union Pacific Corp (UNP). The 10-year T-note yield climbed to a new 16-year high today after an unexpected decline in U.S. weekly jobless claims to an 8-3/4 month low bolstered the outlook for the Fed to keep interest rates higher for longer.
|
2153.0
|
2023-10-19 00:00:00 UTC
|
American Airlines (AAL) Reports Q3 Earnings: What Key Metrics Have to Say
|
AAL
|
https://www.nasdaq.com/articles/american-airlines-aal-reports-q3-earnings%3A-what-key-metrics-have-to-say
|
nan
|
nan
|
American Airlines (AAL) reported $13.48 billion in revenue for the quarter ended September 2023, representing a year-over-year increase of 0.2%. EPS of $0.38 for the same period compares to $0.69 a year ago.
The reported revenue represents a surprise of -0.27% over the Zacks Consensus Estimate of $13.52 billion. With the consensus EPS estimate being $0.26, the EPS surprise was +46.15%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how American Airlines performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Available seat miles - Total: 73,285 million versus the five-analyst average estimate of 73,006.41 million.
Operating cost per ASM excluding net special items and fuel - Total: 13.02 cents versus 13.19 cents estimated by five analysts on average.
Average aircraft fuel price including related taxes - Total: 2.91 $/gal compared to the 2.88 $/gal average estimate based on five analysts.
Total revenue per ASM - Total: 18.4 cents compared to the 18.53 cents average estimate based on five analysts.
Operating cost per ASM excluding net special items - Total: 17.4 cents versus 17.46 cents estimated by four analysts on average.
Passenger load factor (percent) - Total: 84% compared to the 85% average estimate based on four analysts.
Passenger revenue per ASM - Total: 16.95 cents versus the four-analyst average estimate of 17.05 cents.
Yield - Total: 20.18 cents versus the three-analyst average estimate of 20.27 cents.
Fuel consumption - Total: 1,102 MGal versus 1,094.99 MGal estimated by three analysts on average.
Revenue- Passenger: $12.42 billion versus $12.44 billion estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +0.2% change.
Revenue- Other: $868 million versus the four-analyst average estimate of $880.78 million. The reported number represents a year-over-year change of +10.3%.
Revenue- Cargo: $193 million compared to the $208.51 million average estimate based on four analysts. The reported number represents a change of -30.8% year over year.
View all Key Company Metrics for American Airlines here>>>
Shares of American Airlines have returned -13% over the past month versus the Zacks S&P 500 composite's -3% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s credited with a “watershed medical breakthrough” and is developing a bustling pipeline of other projects that could make a world of difference for patients suffering from diseases involving the liver, lungs, and blood. This is a timely investment that you can catch while it emerges from its bear market lows.
It could rival or surpass other recent Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
American Airlines Group Inc. (AAL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
American Airlines (AAL) reported $13.48 billion in revenue for the quarter ended September 2023, representing a year-over-year increase of 0.2%. Click to get this free report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
|
American Airlines (AAL) reported $13.48 billion in revenue for the quarter ended September 2023, representing a year-over-year increase of 0.2%. Click to get this free report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. Operating cost per ASM excluding net special items and fuel - Total: 13.02 cents versus 13.19 cents estimated by five analysts on average.
|
American Airlines (AAL) reported $13.48 billion in revenue for the quarter ended September 2023, representing a year-over-year increase of 0.2%. Click to get this free report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. Here is how American Airlines performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Available seat miles - Total: 73,285 million versus the five-analyst average estimate of 73,006.41 million.
|
American Airlines (AAL) reported $13.48 billion in revenue for the quarter ended September 2023, representing a year-over-year increase of 0.2%. Click to get this free report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. The reported revenue represents a surprise of -0.27% over the Zacks Consensus Estimate of $13.52 billion.
|
2154.0
|
2023-10-19 00:00:00 UTC
|
American Airlines Orders Four Embraer E175s - Quick Facts
|
AAL
|
https://www.nasdaq.com/articles/american-airlines-orders-four-embraer-e175s-quick-facts
|
nan
|
nan
|
(RTTNews) - Embraer (ERJ) said that American Airlines has signed a firm order with the company for four new E175s. The contract value is US$230.6 million at list price, and will be included in Embraer's 2023 fourth quarter backlog.
The aircraft will be operated by American's wholly owned subsidiary, Envoy Air.
With all deliveries in the fourth quarter 2024, Envoy's all E-Jet fleet will grow to over 150 aircraft by the end of 2024.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
(RTTNews) - Embraer (ERJ) said that American Airlines has signed a firm order with the company for four new E175s. The contract value is US$230.6 million at list price, and will be included in Embraer's 2023 fourth quarter backlog. With all deliveries in the fourth quarter 2024, Envoy's all E-Jet fleet will grow to over 150 aircraft by the end of 2024.
|
The contract value is US$230.6 million at list price, and will be included in Embraer's 2023 fourth quarter backlog. With all deliveries in the fourth quarter 2024, Envoy's all E-Jet fleet will grow to over 150 aircraft by the end of 2024. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
The contract value is US$230.6 million at list price, and will be included in Embraer's 2023 fourth quarter backlog. With all deliveries in the fourth quarter 2024, Envoy's all E-Jet fleet will grow to over 150 aircraft by the end of 2024. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
(RTTNews) - Embraer (ERJ) said that American Airlines has signed a firm order with the company for four new E175s. The contract value is US$230.6 million at list price, and will be included in Embraer's 2023 fourth quarter backlog. The aircraft will be operated by American's wholly owned subsidiary, Envoy Air.
|
2155.0
|
2023-10-19 00:00:00 UTC
|
Markets Today: Stocks Climb on Positive Earnings Results Despite Higher Bond Yields
|
AAL
|
https://www.nasdaq.com/articles/markets-today%3A-stocks-climb-on-positive-earnings-results-despite-higher-bond-yields
|
nan
|
nan
|
Morning Markets
December E-Mini S&P 500 futures (ESZ23) are up +0.10%, and the Dec Nasdaq 100 E-Mini futures (NQZ23) are up +0.31%.
Stock index futures this morning are moderately higher on some better-than-expected corporate earnings results. Netflix is up more than +12% in pre-market trading after it reported a larger-than-expected increase in Q3 streaming paid memberships. Also, American Airlines Group is up more than +2% after reporting Q3 adjusted EPS above the consensus. On the negative side, Tesla is down more than -5% after reporting weaker-than-expected Q3 EPS.
Higher T-note yields are negative for stocks. The 10-year T-note yield climbed to a new 16-year high today after an unexpected decline in U.S. weekly jobless claims to an 8-3/4 month low bolstered the outlook for the Fed to keep interest rates higher for longer.
In the Middle East, United Nations Secretary-General Guterres is traveling to Egypt today, and UK Prime Minister Sunak is in Israel today to meet Israeli leaders before heading to a “number of other regional capitals” as global leaders attempt to keep the Israeli-Hamas war from widening.
U.S. weekly initial unemployment claims unexpectedly fell -13,000 to an 8-3/4 month low of 198,000, showing a stronger labor market than expectations of an increase to 210,000.
The U.S. Oct Philadelphia Fed business outlook survey rose +4.5 to -9.0, weaker than expectations of -7.0.
The markets are discounting an 8% chance that the FOMC will raise the funds rate by +25 bp at the next FOMC meeting that ends on November 1, and a 43% chance for that +25 bp rate hike at the following meeting that ends on December 13. The markets are then expecting the FOMC to begin cutting rates in the second half of 2024 in response to an expected slowdown in the U.S. economy.
U.S. and European bond yields are mixed. The 10-year T-note yield rose to a 16-year high of 4.981% and is up +2.4 bp at 4.939%. The 10-year German bund yield fell from a 2-week high of 2.961% and is down -0.9 bp at 2.915%. The 10-year UK gilt yield rose to a 1-3/4 month high of 4.722% and is up +1.4 bp at 4.671%.
Overseas stock markets are mixed. The Euro Stoxx 50 is down -0.16%. China’s Shanghai Composite Index closed down -0.80%. Japan’s Nikkei 225 today closed up +0.01%.
The Euro Stoxx 50 today fell to a 2-week low and is moderately lower as concerns that interest rates will remain higher for longer are pushing government bond yields higher and weighing on stocks. The 10-year UK gilt yield climbed to a 1-3/4 month high, and the 10-year German bund yield rose to a 2-week high. Weaker-than-expected corporate quarterly earnings results also weigh on stocks, as Roche Holding AG falls more than -4% to lead pharmaceutical stocks lower after reporting declining quarterly revenue. Also, Nestle SA is down more than -1% after reporting the slowest sales growth in almost three years.
French Oct business confidence fell -2 to a 2-1/2 year low of 98, weaker than expectations of 99.
China’s Shanghai Composite Stock Index today dropped to an 11-1/2 month low and closed moderately lower. Persistent weakness in China’s property market remains a drag on China’s economy as government action to stabilize the property sector has shown little effect. Property developers sold off and led the overall market lower after today’s news showed China’s Sep new home prices fell by the most in 11 months. Also, property investment, a key driver of economic activity, contracted -9.1% from January to September from a year ago, a bigger drop than in the first eight months of the year. Chinese electric vehicle makers also closed lower today, pressured by weaker-than-expected earnings from Tesla.
China Sep new home prices fell -0.30% m/m, the biggest decline in 11 months.
Japan’s Nikkei Stock Index today fell to a 1-week low and posted moderate losses. Soaring T-Note yields are undercutting stocks as the 10-year T-note yield jumped to a 16-year high on concerns the Fed will keep interest rates higher for longer. The increase in T-note yields also helped push Japanese government bond yields higher as the 10-year JGB bond yield rose to a 10-year high today at 0.851%. Japanese chip equipment stocks declined today after ASML Holding NV said orders plunged in Q3 amid a sector-wide slump in the semiconductor industry. On the positive side, Japanese cosmetics makers that benefit from tourism rose after data showed spending by foreign tourists beat pre-pandemic levels in September due to the weak yen.
In a quarterly report today, the BOJ upgraded its economic assessments for the most regions in more than a year, a sign of growing confidence in Japan’s recovery. The BOJ raised its economic view for six of nine areas in Japan and kept the other three regions unchanged.
Pre-Market U.S. Stock Movers
Tesla (TSLA) tumbled more than -5% in pre-market trading after reporting Q3 EPS of 66 cents, below the consensus of 74 cents, with gross margins of 17.9%, weaker than the consensus of 18%.
Lam Research (LRCX) dropped more than -3% in pre-market trading after reporting Q1 customer support-related revenue of $1.43 billion, weaker than the consensus of $1.51 billion.
VMWare (VMW) sank more than -6% in pre-market trading after the Financial Times reported that Chinese regulators may hold up Broadcom’s acquisition of the company.
Blackstone (BX) tumbled more than -4% in pre-market trading after reporting Q3 distributable income/share of 94 cents, weaker than the consensus of $1.01.
Equifax (EFX) sank more than -7 % in pre-market trading after reporting Q3 operating revenue of $1.32 billion, below the consensus of $1.33 billion, and cut its full-year revenue forecast to $5.25 billion-$5.27 billion from a prior view of $5.27 billion-$5.33 billion, weaker than the consensus of $5.29 billion.
Zions Bancorp (ZION) tumbled more than -5% in pre-market trading after reporting Q3 total deposits of $75.40 billion, below the consensus of $76.51 billion.
Crown Castle (CCI) dropped more than -3% in pre-market trading after reporting Q3 net revenue of $1.67 billion, weaker than the consensus of $1.69 billion.
Graphic Packaging Holding (GPK) fell more than -4% in pre-market trading after Wells Fargo Securities downgraded the stock to underweight from overweight with a price target of $19.
Fortinet (FTNT) fell more than -1% in pre-market trading after Jeffries downgraded the stock to hold from buy.
Netflix (NFLX) jumped more than +12% in pre-market trading after reporting Q3 streaming paid memberships of +247.15 million, well above the consensus of +244.41 million.
Las Vegas Sands (LVS) climbed more than +5% in pre-market trading after reporting Q3 adjusted property Ebitda of $1.12 billion, above the consensus of $1.06 billion, and its board of directors authorized a $2 billion stock buyback program.
AT&T (T) climbed more than +3% in pre-market trading after reporting Q3 free cash flow of $5.2 billion, above the consensus of $4.6 billion.
American Airlines Group (AAL) is up more than +2% in pre-market trading after reporting Q3 adjusted EPS of 38 cents, stronger than the consensus of 25 cents.
Crowdstrike Holdings (CRWD) and Zscaler (ZS) are up more than +2% in pre-market trading after Jeffries upgraded the stocks to buy from hold.
Best Buy (BBY) rose more than +2% in pre-market trading after Goldman Sachs upgraded the stock to buy from neutral with a price target of $85.
First Industrial Realty (FR) rose more than +1% in pre-market trading after reporting Q3 revenue of $155.1 million, better than the consensus of $152.5 million.
Earnings Reports (10/19/2023)
Alaska Air Group Inc (ALK), American Airlines Group Inc (AAL), AT&T Inc (T), Blackstone Inc (BX), CSX Corp (CSX), Fifth Third Bancorp (FITB), Freeport-McMoRan Inc (FCX), Genuine Parts Co (GPC), Intuitive Surgical Inc (ISRG), KeyCorp (KEY), Marsh & McLennan Cos Inc (MMC), Philip Morris International In (PM), Pool Corp (POOL), Snap-on Inc (SNA), Truist Financial Corp (TFC), Union Pacific Corp (UNP).
More Stock Market News from Barchart
Options Insight: Bear Call Spread Screener Results for October 19th
Nasdaq Futures Climb on Upbeat Netflix Results, Powell Speech in Focus
Stocks Close Lower on Heightened Geopolitical Risks and Soaring Bond Yields
Households Might Be Wealthier. Just Don’t Tell Winnebago and the Rest of the RV Stocks
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
American Airlines Group (AAL) is up more than +2% in pre-market trading after reporting Q3 adjusted EPS of 38 cents, stronger than the consensus of 25 cents. Earnings Reports (10/19/2023) Alaska Air Group Inc (ALK), American Airlines Group Inc (AAL), AT&T Inc (T), Blackstone Inc (BX), CSX Corp (CSX), Fifth Third Bancorp (FITB), Freeport-McMoRan Inc (FCX), Genuine Parts Co (GPC), Intuitive Surgical Inc (ISRG), KeyCorp (KEY), Marsh & McLennan Cos Inc (MMC), Philip Morris International In (PM), Pool Corp (POOL), Snap-on Inc (SNA), Truist Financial Corp (TFC), Union Pacific Corp (UNP). The 10-year T-note yield climbed to a new 16-year high today after an unexpected decline in U.S. weekly jobless claims to an 8-3/4 month low bolstered the outlook for the Fed to keep interest rates higher for longer.
|
American Airlines Group (AAL) is up more than +2% in pre-market trading after reporting Q3 adjusted EPS of 38 cents, stronger than the consensus of 25 cents. Earnings Reports (10/19/2023) Alaska Air Group Inc (ALK), American Airlines Group Inc (AAL), AT&T Inc (T), Blackstone Inc (BX), CSX Corp (CSX), Fifth Third Bancorp (FITB), Freeport-McMoRan Inc (FCX), Genuine Parts Co (GPC), Intuitive Surgical Inc (ISRG), KeyCorp (KEY), Marsh & McLennan Cos Inc (MMC), Philip Morris International In (PM), Pool Corp (POOL), Snap-on Inc (SNA), Truist Financial Corp (TFC), Union Pacific Corp (UNP). The Euro Stoxx 50 today fell to a 2-week low and is moderately lower as concerns that interest rates will remain higher for longer are pushing government bond yields higher and weighing on stocks.
|
American Airlines Group (AAL) is up more than +2% in pre-market trading after reporting Q3 adjusted EPS of 38 cents, stronger than the consensus of 25 cents. Earnings Reports (10/19/2023) Alaska Air Group Inc (ALK), American Airlines Group Inc (AAL), AT&T Inc (T), Blackstone Inc (BX), CSX Corp (CSX), Fifth Third Bancorp (FITB), Freeport-McMoRan Inc (FCX), Genuine Parts Co (GPC), Intuitive Surgical Inc (ISRG), KeyCorp (KEY), Marsh & McLennan Cos Inc (MMC), Philip Morris International In (PM), Pool Corp (POOL), Snap-on Inc (SNA), Truist Financial Corp (TFC), Union Pacific Corp (UNP). Pre-Market U.S. Stock Movers Tesla (TSLA) tumbled more than -5% in pre-market trading after reporting Q3 EPS of 66 cents, below the consensus of 74 cents, with gross margins of 17.9%, weaker than the consensus of 18%.
|
American Airlines Group (AAL) is up more than +2% in pre-market trading after reporting Q3 adjusted EPS of 38 cents, stronger than the consensus of 25 cents. Earnings Reports (10/19/2023) Alaska Air Group Inc (ALK), American Airlines Group Inc (AAL), AT&T Inc (T), Blackstone Inc (BX), CSX Corp (CSX), Fifth Third Bancorp (FITB), Freeport-McMoRan Inc (FCX), Genuine Parts Co (GPC), Intuitive Surgical Inc (ISRG), KeyCorp (KEY), Marsh & McLennan Cos Inc (MMC), Philip Morris International In (PM), Pool Corp (POOL), Snap-on Inc (SNA), Truist Financial Corp (TFC), Union Pacific Corp (UNP). The 10-year T-note yield climbed to a new 16-year high today after an unexpected decline in U.S. weekly jobless claims to an 8-3/4 month low bolstered the outlook for the Fed to keep interest rates higher for longer.
|
2156.0
|
2023-10-19 00:00:00 UTC
|
American Airlines (AAL) Surpasses Q3 Earnings Estimates
|
AAL
|
https://www.nasdaq.com/articles/american-airlines-aal-surpasses-q3-earnings-estimates
|
nan
|
nan
|
American Airlines (AAL) came out with quarterly earnings of $0.38 per share, beating the Zacks Consensus Estimate of $0.26 per share. This compares to earnings of $0.69 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of 46.15%. A quarter ago, it was expected that this world's largest airline would post earnings of $1.58 per share when it actually produced earnings of $1.92, delivering a surprise of 21.52%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
American Airlines, which belongs to the Zacks Transportation - Airline industry, posted revenues of $13.48 billion for the quarter ended September 2023, missing the Zacks Consensus Estimate by 0.27%. This compares to year-ago revenues of $13.46 billion. The company has topped consensus revenue estimates just once over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
American Airlines shares have lost about 10.7% since the beginning of the year versus the S&P 500's gain of 12.4%.
What's Next for American Airlines?
While American Airlines has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for American Airlines: mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $0.15 on $13.2 billion in revenues for the coming quarter and $2.31 on $53.01 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Transportation - Airline is currently in the bottom 8% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Southwest Airlines (LUV), another stock in the same industry, has yet to report results for the quarter ended September 2023. The results are expected to be released on October 26.
This airline is expected to post quarterly earnings of $0.40 per share in its upcoming report, which represents a year-over-year change of -20%. The consensus EPS estimate for the quarter has been revised 32.2% lower over the last 30 days to the current level.
Southwest Airlines' revenues are expected to be $6.58 billion, up 5.7% from the year-ago quarter.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s credited with a “watershed medical breakthrough” and is developing a bustling pipeline of other projects that could make a world of difference for patients suffering from diseases involving the liver, lungs, and blood. This is a timely investment that you can catch while it emerges from its bear market lows.
It could rival or surpass other recent Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
American Airlines Group Inc. (AAL) : Free Stock Analysis Report
Southwest Airlines Co. (LUV) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
American Airlines (AAL) came out with quarterly earnings of $0.38 per share, beating the Zacks Consensus Estimate of $0.26 per share. Click to get this free report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Southwest Airlines Co. (LUV) : Free Stock Analysis Report To read this article on Zacks.com click here. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock.
|
Click to get this free report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Southwest Airlines Co. (LUV) : Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines (AAL) came out with quarterly earnings of $0.38 per share, beating the Zacks Consensus Estimate of $0.26 per share. American Airlines, which belongs to the Zacks Transportation - Airline industry, posted revenues of $13.48 billion for the quarter ended September 2023, missing the Zacks Consensus Estimate by 0.27%.
|
American Airlines (AAL) came out with quarterly earnings of $0.38 per share, beating the Zacks Consensus Estimate of $0.26 per share. Click to get this free report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Southwest Airlines Co. (LUV) : Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines, which belongs to the Zacks Transportation - Airline industry, posted revenues of $13.48 billion for the quarter ended September 2023, missing the Zacks Consensus Estimate by 0.27%.
|
American Airlines (AAL) came out with quarterly earnings of $0.38 per share, beating the Zacks Consensus Estimate of $0.26 per share. Click to get this free report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Southwest Airlines Co. (LUV) : Free Stock Analysis Report To read this article on Zacks.com click here. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
|
2157.0
|
2023-10-19 00:00:00 UTC
|
American Airlines Q3 Profit Beats Estimates; Lowers 2023 Earnings Outlook
|
AAL
|
https://www.nasdaq.com/articles/american-airlines-q3-profit-beats-estimates-lowers-2023-earnings-outlook
|
nan
|
nan
|
(RTTNews) - American Airlines Group Inc. (AAL) posted a third-quarter net loss of $545 million compared to net income of $483 million, last year. Loss per share was $0.83 compared to profit of $0.69. The company recognized $808 million of net special items in the third quarter after the effect of taxes, which principally included operating net special items of $983 million related to onetime charges resulting from the ratification of a new collective bargaining agreement with American's mainline pilots. Excluding net special items, American produced an operating margin of 5.4% and net income of $263 million in the third quarter. Adjusted profit per share was $0.38 compared to $0.69, prior year. On average, 16 analysts polled by Thomson Reuters expected the company to report profit per share of $0.25, for the quarter. Analysts' estimates typically exclude special items.
Third-quarter revenues were approximately $13.48 billion, compared to $13.46 billion, previous year. Analysts on average had estimated $13.51 billion in revenue. American operated more than 515,000 flights in the third quarter with an average load factor of 84%.
American reduced total debt by $1.4 billion in the third quarter. The company noted that it is more than 70% of the way to its goal of reducing total debt by $15 billion by the end of 2025. As of Sept. 30, 2023, American had reduced its total debt by approximately $10.9 billion from peak levels in mid-2021. The company ended the quarter with approximately $13.5 billion of total available liquidity.
Looking forward, the company expects fourth-quarter adjusted operating margin to be 2% to 4%. Adjusted earnings per share is projected to be approximately breakeven. The company expects fourth-quarter capacity to be up approximately 4.5% to 6.5%.
American now expects 2023 adjusted operating margin to be approximately 7%. Adjusted earnings per share is anticipated in a range of approximately $2.25-$2.50. The company now expects full-year capacity to be up approximately 6.5% year over year. In July, the company anticipated full-year adjusted earnings per share to be between $3.00 and $3.75.
Shares of American Airlines are up 1% in pre-market trade on Thursday.
For more earnings news, earnings calendar, and earnings for stocks, visit rttnews.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
(RTTNews) - American Airlines Group Inc. (AAL) posted a third-quarter net loss of $545 million compared to net income of $483 million, last year. The company recognized $808 million of net special items in the third quarter after the effect of taxes, which principally included operating net special items of $983 million related to onetime charges resulting from the ratification of a new collective bargaining agreement with American's mainline pilots. On average, 16 analysts polled by Thomson Reuters expected the company to report profit per share of $0.25, for the quarter.
|
(RTTNews) - American Airlines Group Inc. (AAL) posted a third-quarter net loss of $545 million compared to net income of $483 million, last year. Excluding net special items, American produced an operating margin of 5.4% and net income of $263 million in the third quarter. Looking forward, the company expects fourth-quarter adjusted operating margin to be 2% to 4%.
|
(RTTNews) - American Airlines Group Inc. (AAL) posted a third-quarter net loss of $545 million compared to net income of $483 million, last year. The company recognized $808 million of net special items in the third quarter after the effect of taxes, which principally included operating net special items of $983 million related to onetime charges resulting from the ratification of a new collective bargaining agreement with American's mainline pilots. Excluding net special items, American produced an operating margin of 5.4% and net income of $263 million in the third quarter.
|
(RTTNews) - American Airlines Group Inc. (AAL) posted a third-quarter net loss of $545 million compared to net income of $483 million, last year. Third-quarter revenues were approximately $13.48 billion, compared to $13.46 billion, previous year. American now expects 2023 adjusted operating margin to be approximately 7%.
|
2158.0
|
2023-10-19 00:00:00 UTC
|
American Airlines Group Inc Q3 Earnings Summary
|
AAL
|
https://www.nasdaq.com/articles/american-airlines-group-inc-q3-earnings-summary
|
nan
|
nan
|
(RTTNews) - Below are the earnings highlights for American Airlines Group Inc (AAL):
Earnings: -$545 million in Q3 vs. $483 million in the same period last year. EPS: -$0.83 in Q3 vs. $0.69 in the same period last year. Excluding items, American Airlines Group Inc reported adjusted earnings of $263 million or $0.38 per share for the period.
Analysts projected $0.25 per share Revenue: $13.48 billion in Q3 vs. $13.46 billion in the same period last year.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
(RTTNews) - Below are the earnings highlights for American Airlines Group Inc (AAL): Earnings: -$545 million in Q3 vs. $483 million in the same period last year. Excluding items, American Airlines Group Inc reported adjusted earnings of $263 million or $0.38 per share for the period. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
(RTTNews) - Below are the earnings highlights for American Airlines Group Inc (AAL): Earnings: -$545 million in Q3 vs. $483 million in the same period last year. Excluding items, American Airlines Group Inc reported adjusted earnings of $263 million or $0.38 per share for the period. Analysts projected $0.25 per share Revenue: $13.48 billion in Q3 vs. $13.46 billion in the same period last year.
|
(RTTNews) - Below are the earnings highlights for American Airlines Group Inc (AAL): Earnings: -$545 million in Q3 vs. $483 million in the same period last year. Excluding items, American Airlines Group Inc reported adjusted earnings of $263 million or $0.38 per share for the period. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
(RTTNews) - Below are the earnings highlights for American Airlines Group Inc (AAL): Earnings: -$545 million in Q3 vs. $483 million in the same period last year. EPS: -$0.83 in Q3 vs. $0.69 in the same period last year. Excluding items, American Airlines Group Inc reported adjusted earnings of $263 million or $0.38 per share for the period.
|
2159.0
|
2023-10-19 00:00:00 UTC
|
American Airlines reports quarterly loss on soaring costs
|
AAL
|
https://www.nasdaq.com/articles/american-airlines-reports-quarterly-loss-on-soaring-costs
|
nan
|
nan
|
Adds revenue numbers in paragraph 5, background
Oct 19 (Reuters) - American Airlines AAL.O reported a quarterly loss on Thursday, as it was hobbled by the impact of rising jet fuel prices and expensive labor contracts.
Rising costs as well as signs of softening domestic travel demand have raised worries about the industry's profitability, sparking a sell-off in airline stocks and prompting analysts to slash their earnings estimates.
On Tuesday, United Airlines forecast weaker fourth-quarter earnings due to higher costs.
American Airlines itself had warned in August that third-quarter costs would rise following a new labor deal with its pilots that included more than $9.6 billion in total pay and benefits increases over four years.
The company's net loss was $545 million, or 83 cent per share, for the third quarter ended Sept. 30, compared with a profit of $483 million, or 69 cents per share, a year earlier.
The carrier's total operating revenue marginally rose to $13.48 billion.
(Reporting by Shivansh Tiwary in Bengaluru; Editing by Anil D'Silva)
((Shivansh.Tiwary@thomsonreuters.com; +91 9708363192;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Adds revenue numbers in paragraph 5, background Oct 19 (Reuters) - American Airlines AAL.O reported a quarterly loss on Thursday, as it was hobbled by the impact of rising jet fuel prices and expensive labor contracts. Rising costs as well as signs of softening domestic travel demand have raised worries about the industry's profitability, sparking a sell-off in airline stocks and prompting analysts to slash their earnings estimates. American Airlines itself had warned in August that third-quarter costs would rise following a new labor deal with its pilots that included more than $9.6 billion in total pay and benefits increases over four years.
|
Adds revenue numbers in paragraph 5, background Oct 19 (Reuters) - American Airlines AAL.O reported a quarterly loss on Thursday, as it was hobbled by the impact of rising jet fuel prices and expensive labor contracts. Rising costs as well as signs of softening domestic travel demand have raised worries about the industry's profitability, sparking a sell-off in airline stocks and prompting analysts to slash their earnings estimates. The company's net loss was $545 million, or 83 cent per share, for the third quarter ended Sept. 30, compared with a profit of $483 million, or 69 cents per share, a year earlier.
|
Adds revenue numbers in paragraph 5, background Oct 19 (Reuters) - American Airlines AAL.O reported a quarterly loss on Thursday, as it was hobbled by the impact of rising jet fuel prices and expensive labor contracts. Rising costs as well as signs of softening domestic travel demand have raised worries about the industry's profitability, sparking a sell-off in airline stocks and prompting analysts to slash their earnings estimates. American Airlines itself had warned in August that third-quarter costs would rise following a new labor deal with its pilots that included more than $9.6 billion in total pay and benefits increases over four years.
|
Adds revenue numbers in paragraph 5, background Oct 19 (Reuters) - American Airlines AAL.O reported a quarterly loss on Thursday, as it was hobbled by the impact of rising jet fuel prices and expensive labor contracts. Rising costs as well as signs of softening domestic travel demand have raised worries about the industry's profitability, sparking a sell-off in airline stocks and prompting analysts to slash their earnings estimates. On Tuesday, United Airlines forecast weaker fourth-quarter earnings due to higher costs.
|
2160.0
|
2023-10-19 00:00:00 UTC
|
American Airlines Group Q3 23 Earnings Conference Call At 8:30 AM ET
|
AAL
|
https://www.nasdaq.com/articles/american-airlines-group-q3-23-earnings-conference-call-at-8%3A30-am-et
|
nan
|
nan
|
(RTTNews) - American Airlines Group Inc (AAL) will host a conference call at 8:30 AM ET on October 19, 2023, to discuss Q3 23 earnings results.
To access the live webcast, log on to https://americanairlines.gcs-web.com/events/upcoming-events
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
(RTTNews) - American Airlines Group Inc (AAL) will host a conference call at 8:30 AM ET on October 19, 2023, to discuss Q3 23 earnings results. To access the live webcast, log on to https://americanairlines.gcs-web.com/events/upcoming-events The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
(RTTNews) - American Airlines Group Inc (AAL) will host a conference call at 8:30 AM ET on October 19, 2023, to discuss Q3 23 earnings results. To access the live webcast, log on to https://americanairlines.gcs-web.com/events/upcoming-events The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
(RTTNews) - American Airlines Group Inc (AAL) will host a conference call at 8:30 AM ET on October 19, 2023, to discuss Q3 23 earnings results. To access the live webcast, log on to https://americanairlines.gcs-web.com/events/upcoming-events The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
(RTTNews) - American Airlines Group Inc (AAL) will host a conference call at 8:30 AM ET on October 19, 2023, to discuss Q3 23 earnings results. To access the live webcast, log on to https://americanairlines.gcs-web.com/events/upcoming-events The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
2161.0
|
2023-10-19 00:00:00 UTC
|
US airline investors worry the travel boom may be coming in for a landing
|
AAL
|
https://www.nasdaq.com/articles/us-airline-investors-worry-the-travel-boom-may-be-coming-in-for-a-landing-0
|
nan
|
nan
|
By Rajesh Kumar Singh
CHICAGO, Oct 19 (Reuters) - It should be the best of times for U.S. airlines with a travel boom still going strong, but investors are nervous demand may soften as the economy falters, making it harder to protect profits from soaring costs.
"It's really a demand-driven business" said Brian Mulberry, client portfolio manager at Zacks Investment Management. "If there's less demand, then obviously less sales means less profitability."
A struggle to get control of operating costs has also called into question rival Delta Air Lines' DAL.N goal of generating profit of over $7 per share next year, with some analysts now calling the target aspirational. That is a reason why the airline's shares are down 10% this month even after it posted stronger-than-expected quarterly earnings.
Strong demand from travelers has so far allowed carriers to mitigate inflationary pressure with higher fares. While both United and Delta said travel demand is holding up, double-digit declines in airfares year-over-year suggest airline pricing power has peaked.
Falling ticket prices are raising questions as to how airlines will hedge against cost increases. Delta CEO Ed Bastian last week suggested the industry would be able to pass along increased operating costs to consumers.
But that's easier said than done as analysts say a depletion of pandemic savings as well as high interest rates have crimped consumers' tolerance for high fares.
Airlines are likely to see "a more dramatic negative effect" than in the past if there is any downturn in demand because their cost of doing business has gone up materially, Mulberry said.
While airlines have acknowledged the higher costs, including rising fuel prices, they say passenger revenue points to a healthy demand trend.
"Travel remains a top purchase priority and our core customer base is in a healthy financial position," Delta CEO Ed Bastian said last week.
United, which has not forecast profit for 2024, on Tuesday similarly said travel demand remains "strong and steady."
Fuel and wage bills accounted for about 50% and 57% of operating costs in the third quarter at Delta and United, respectively. New labor contracts as well as the higher fuel prices mean cost pressures aren't going away.
Rising fuel prices are estimated to inflate Delta's costs by $400 million in the second half of the year. The airline has trimmed its profit outlook for 2023 to a range of $6.00 to $6.25 a share from $6 to $7 per share estimated in July.
Similarly, United projects its average fuel bill will increase by 11% in the December quarter from a quarter ago.
United said it is also facing headwinds from the Israel-Hamas war.
New Chief Financial Officer Michael Leskinen told investors on Wednesday the company's non-fuel operating costs in the fourth quarter would rise by about 1.5 percentage points if its flights to Tel Aviv remain suspended through the year.
Delays in aircraft and jet-engine deliveries have also forced carriers to fly older planes that are less fuel-efficient and spend more on aircraft maintenance.
American Airlines AAL.O and Alaska Air ALK.N, who will report earnings Thursday, have cut their third-quarter profit estimates due to higher fuel costs.
Melius Research analyst Conor Cunningham said airlines' failure to deliver on their cost target has been "challenging to stomach."
(Reporting by Rajesh Kumar Singh, editing by Ben Klayman and Rod Nickel)
((rajeshkumar.singh@thomsonreuters.com; +1-313-484-5370; Reuters Messaging: rajeshkumar.singh.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
American Airlines AAL.O and Alaska Air ALK.N, who will report earnings Thursday, have cut their third-quarter profit estimates due to higher fuel costs. By Rajesh Kumar Singh CHICAGO, Oct 19 (Reuters) - It should be the best of times for U.S. airlines with a travel boom still going strong, but investors are nervous demand may soften as the economy falters, making it harder to protect profits from soaring costs. "Travel remains a top purchase priority and our core customer base is in a healthy financial position," Delta CEO Ed Bastian said last week.
|
American Airlines AAL.O and Alaska Air ALK.N, who will report earnings Thursday, have cut their third-quarter profit estimates due to higher fuel costs. Delta CEO Ed Bastian last week suggested the industry would be able to pass along increased operating costs to consumers. "Travel remains a top purchase priority and our core customer base is in a healthy financial position," Delta CEO Ed Bastian said last week.
|
American Airlines AAL.O and Alaska Air ALK.N, who will report earnings Thursday, have cut their third-quarter profit estimates due to higher fuel costs. By Rajesh Kumar Singh CHICAGO, Oct 19 (Reuters) - It should be the best of times for U.S. airlines with a travel boom still going strong, but investors are nervous demand may soften as the economy falters, making it harder to protect profits from soaring costs. While airlines have acknowledged the higher costs, including rising fuel prices, they say passenger revenue points to a healthy demand trend.
|
American Airlines AAL.O and Alaska Air ALK.N, who will report earnings Thursday, have cut their third-quarter profit estimates due to higher fuel costs. Delta CEO Ed Bastian last week suggested the industry would be able to pass along increased operating costs to consumers. United, which has not forecast profit for 2024, on Tuesday similarly said travel demand remains "strong and steady."
|
2162.0
|
2023-10-19 00:00:00 UTC
|
US STOCKS-Wall St eyes higher open ahead of Powell's comments; Tesla drops, Netflix surges
|
AAL
|
https://www.nasdaq.com/articles/us-stocks-wall-st-eyes-higher-open-ahead-of-powells-comments-tesla-drops-netflix-surges
|
nan
|
nan
|
By Shubham Batra and Shashwat Chauhan
Oct 19 (Reuters) - Wall Street's main indexes were set to open higher on Thursday as Tesla and Netflix kicked U.S. earnings season into high gear, while Treasury yields eased off session highs ahead of remarks from Federal Reserve Chair Jerome Powell.
NetflixNFLX.O soared 15% in premarket trading after the world's No. 1 streaming company by subscriber count said it was raising prices for some of its plans in the United States, Britain and France after adding 9 million users in the third quarter.
TeslaTSLA.O, however, slid 6.1% as the electric-vehicle (EV) maker missed Wall Street estimates for third-quarter gross margin, profit and revenue.
CEO Elon Musk said on Wednesday he was concerned about the impact of high interest rates on car buyers, adding that the EV maker was hesitant about its plans for a factory in Mexico.
Legacy automakers Ford Motor F.N and General Motors GM.N lost around 1% each.
Yields on benchmark Treasury notes slipped from session highs, but the 2-year US2YT=RR yield, which best reflects short-term interest rate expectations, was still at a 17-year peak at 5.2228%, while that on the 10-year note US10YT=RR stood at 4.9364%, near the 5% level last seen in 2007.
"Is the 10-year going to breach 5% in yield ... I think the answer to that is yes, that it can in turn provoke even more volatility," said Russell Hackmann, President of Hackmann Wealth Partners.
"That's a psychologically important issue that maybe could trigger a real sell off in stocks ... you got a jittery market out there."
Powell is scheduled to speak at 12 p.m. ET, while other Fed officials including Chicago Fed President Austan Goolsbee, Atlanta's Raphael Bostic and Philadelphia's Patrick Harker will speak later in the day.
Fed policymakers on Wednesday signaled a pause in hiking interest rates for another couple of months as they wait for signs of progress in their fight against inflation and the potential for the recent rise in long-term yields to do some of their work for them.
Meanwhile, jobless claims fell to 198,000 in the week ended Oct. 14, from a revised 211,000 a week earlier, indicating a still-tight labor market.
Wall Street's main indexes ended around 1% lower on Wednesday as bond yields surged.
At 8:47 a.m. ET, Dow e-minis 1YMcv1 were up 10 points, or 0.03%, S&P 500 e-minis EScv1 were up 5.75 points, or 0.13%, and Nasdaq 100 e-minis NQcv1 were up 54.5 points, or 0.36%.
On the earnings front, BlackstoneBX.N slipped 4.9% as the world's largest private equity firm's third-quarter distributable earnings fell more than expected due to a decline in asset sales in its real estate business.
American AirlinesAAL.O cut its 2023 forecast for adjusted profit as it struggles to overcome the impact of higher jet fuel prices and expensive labor contracts. Its shares were last up 3%.
Lam ResearchLRCX.O fell 1.8% as the chip-manufacturing equipment supplier forecast second-quarter revenue slightly below Wall Street estimates.
Las Vegas SandsLVS.N rose 5.1% following the casino operator's better-than-expected third quarter profit and revenue.
AT&TT.N added 4.9% after the telecom firm raised its annual free cash flow forecast.
(Reporting by Shubham Batra and Shashwat Chauhan; in Bengaluru; Editing by Dhanya Ann Thoppil, Saumyadeb Chakrabarty and Vinay Dwivedi)
((Shubham.Batra@thomsonreuters.com; Shashwat.Chauhan@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
American AirlinesAAL.O cut its 2023 forecast for adjusted profit as it struggles to overcome the impact of higher jet fuel prices and expensive labor contracts. CEO Elon Musk said on Wednesday he was concerned about the impact of high interest rates on car buyers, adding that the EV maker was hesitant about its plans for a factory in Mexico. Fed policymakers on Wednesday signaled a pause in hiking interest rates for another couple of months as they wait for signs of progress in their fight against inflation and the potential for the recent rise in long-term yields to do some of their work for them.
|
American AirlinesAAL.O cut its 2023 forecast for adjusted profit as it struggles to overcome the impact of higher jet fuel prices and expensive labor contracts. By Shubham Batra and Shashwat Chauhan Oct 19 (Reuters) - Wall Street's main indexes were set to open higher on Thursday as Tesla and Netflix kicked U.S. earnings season into high gear, while Treasury yields eased off session highs ahead of remarks from Federal Reserve Chair Jerome Powell. TeslaTSLA.O, however, slid 6.1% as the electric-vehicle (EV) maker missed Wall Street estimates for third-quarter gross margin, profit and revenue.
|
American AirlinesAAL.O cut its 2023 forecast for adjusted profit as it struggles to overcome the impact of higher jet fuel prices and expensive labor contracts. By Shubham Batra and Shashwat Chauhan Oct 19 (Reuters) - Wall Street's main indexes were set to open higher on Thursday as Tesla and Netflix kicked U.S. earnings season into high gear, while Treasury yields eased off session highs ahead of remarks from Federal Reserve Chair Jerome Powell. Yields on benchmark Treasury notes slipped from session highs, but the 2-year US2YT=RR yield, which best reflects short-term interest rate expectations, was still at a 17-year peak at 5.2228%, while that on the 10-year note US10YT=RR stood at 4.9364%, near the 5% level last seen in 2007.
|
American AirlinesAAL.O cut its 2023 forecast for adjusted profit as it struggles to overcome the impact of higher jet fuel prices and expensive labor contracts. By Shubham Batra and Shashwat Chauhan Oct 19 (Reuters) - Wall Street's main indexes were set to open higher on Thursday as Tesla and Netflix kicked U.S. earnings season into high gear, while Treasury yields eased off session highs ahead of remarks from Federal Reserve Chair Jerome Powell. TeslaTSLA.O, however, slid 6.1% as the electric-vehicle (EV) maker missed Wall Street estimates for third-quarter gross margin, profit and revenue.
|
2163.0
|
2023-10-18 00:00:00 UTC
|
Transportation Stocks' Q3 Earnings Due on Oct 19: UNP, ALK & AAL
|
AAL
|
https://www.nasdaq.com/articles/transportation-stocks-q3-earnings-due-on-oct-19%3A-unp-alk-aal
|
nan
|
nan
|
The Zacks Transportation sector is widely diversified. It houses airlines, railroads, shipping and trucking companies, to name a few.
Only a handful of transportation companies have reported their third-quarter 2023 numbers so far.
The gradual uptick in the economic scenario implies that trading volumes have consistently risen. This bodes well for the sector.
With normalcy being restored post-COVID-19 and people returning to work, airlines in the sector are likely to have benefited from increased passenger revenues in the quarter.
However, the northward movement in oil price is not a welcome development for stocks in the sector.
Oil price surged 28.5% in the July-September period due to the extension of production cut by Saudi Arabia and Russia through the end of the current year. As fuel expenses represent a key input cost for any transportation player, the uptick in these costs is likely to have hurt the bottom line of the transportation companies in the third quarter.
Given this backdrop, investors interested in the Zacks Transportation sector keenly await the results of Union Pacific UNP, Alaska Air Group ALK and American Airlines AAL, scheduled to be released on Oct 19.
Our quantitative model predicts an earnings beat for a company if it has a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). This combination increases the chances of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Let's delve deeper.
We expect Union Pacific’s performance to have been affected by soft revenues due to weak freight demand. Our estimate for third-quarter 2023 freight revenues indicates a 5% decline from the third-quarter 2022 actuals.
Our proven model does not predict an earnings beat for UNP this season, as the company has an Earnings ESP of -1.41% and a Zacks Rank #3 at present. Notably, our model had not predicted an surprise for UNP earlier as well, when its third-quarter earnings preview article was issued. At that time, UNP had an Earnings ESP of -5.32% and a Zacks Rank #3.
Union Pacific Corporation Price and EPS Surprise
Union Pacific Corporation price-eps-surprise | Union Pacific Corporation Quote
We expect Alaska Air’s performance to have been buoyed by increased passenger revenues driven by improved air travel demand. Our estimate for third-quarter 2023 passenger revenues indicates a 0.6% increase from the third-quarter 2022 actuals. However, high fuel costs are likely to have hurt the bottom line.
Riding on high passenger revenues, our proven model hints at an earnings beat for ALK this season. The company has an Earnings ESP of +0.10% and a Zacks Rank #3 at present. Notably, our model had predicted a positive earnings surprise for ALK earlier as well, when its third-quarter earnings preview article was issued. At that time, ALK had an Earnings ESP of +0.66% and a Zacks Rank #3.
Alaska Air Group, Inc. Price and EPS Surprise
Alaska Air Group, Inc. price-eps-surprise | Alaska Air Group, Inc. Quote
We expect American Airlines’ performance to have been buoyed by increased passenger revenues due to improved air travel demand. Our estimate for third-quarter 2023 passenger revenues indicates a 0.6% increase from the third-quarter 2022 actuals. However, high labor and fuel costs are likely to have hurt the bottom line. The Zacks Consensus Estimate for third-quarter earnings has been revised 70.4% downward over the past 60 days, mainly due to high costs. The lowered bar increases the possibility of an earnings beat despite high expenses.
The company has an Earnings ESP of +2.83% and a Zacks Rank #3 at present. Our previous article showed that AAL did not have the favorable combination to beat on earnings in the soon-to-be-reported quarter. At that time, AAL had an Earnings ESP of 0.00% and a Zacks Rank #3. However, estimates changed thereafter, and we are more certain of a beat now.
American Airlines Group Inc. Price and EPS Surprise
American Airlines Group Inc. price-eps-surprise | American Airlines Group Inc. Quote
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
See This Stock Now for Free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Union Pacific Corporation (UNP) : Free Stock Analysis Report
American Airlines Group Inc. (AAL) : Free Stock Analysis Report
Alaska Air Group, Inc. (ALK) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Given this backdrop, investors interested in the Zacks Transportation sector keenly await the results of Union Pacific UNP, Alaska Air Group ALK and American Airlines AAL, scheduled to be released on Oct 19. Our previous article showed that AAL did not have the favorable combination to beat on earnings in the soon-to-be-reported quarter. At that time, AAL had an Earnings ESP of 0.00% and a Zacks Rank #3.
|
Click to get this free report Union Pacific Corporation (UNP) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Alaska Air Group, Inc. (ALK) : Free Stock Analysis Report To read this article on Zacks.com click here. Given this backdrop, investors interested in the Zacks Transportation sector keenly await the results of Union Pacific UNP, Alaska Air Group ALK and American Airlines AAL, scheduled to be released on Oct 19. Our previous article showed that AAL did not have the favorable combination to beat on earnings in the soon-to-be-reported quarter.
|
Click to get this free report Union Pacific Corporation (UNP) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Alaska Air Group, Inc. (ALK) : Free Stock Analysis Report To read this article on Zacks.com click here. Given this backdrop, investors interested in the Zacks Transportation sector keenly await the results of Union Pacific UNP, Alaska Air Group ALK and American Airlines AAL, scheduled to be released on Oct 19. Our previous article showed that AAL did not have the favorable combination to beat on earnings in the soon-to-be-reported quarter.
|
Our estimate for third-quarter 2023 passenger revenues indicates a 0.6% increase from the third-quarter 2022 actuals. Given this backdrop, investors interested in the Zacks Transportation sector keenly await the results of Union Pacific UNP, Alaska Air Group ALK and American Airlines AAL, scheduled to be released on Oct 19. Our previous article showed that AAL did not have the favorable combination to beat on earnings in the soon-to-be-reported quarter.
|
2164.0
|
2023-10-18 00:00:00 UTC
|
Stocks Tumble on Renewed Middle East Risks
|
AAL
|
https://www.nasdaq.com/articles/stocks-tumble-on-renewed-middle-east-risks
|
nan
|
nan
|
What you need to know…
The S&P 500 Index ($SPX) (SPY) today is down -0.78%, the Dow Jones Industrials Index ($DOWI) (DIA) is down -0.50%, and the Nasdaq 100 Index ($IUXX) (QQQ) is down -0.85%.
Stocks this morning are moderately lower on the risks of an escalation in the Israeli-Hamas war after an explosion at a Gaza hospital complicated diplomatic efforts to contain the conflict. After the bombing, the leaders of Jordan, Egypt, and the Palestinian Authority canceled their scheduled summits with President Biden, who landed in Israel today.
Hamas immediately blamed Israel for the explosion, but Israeli military authorities today offered evidence that the explosion was caused by an errant Hamas missile, not by Israeli aerial bombing. Also, the White House today said that the “current” U.S. intelligence assessment is that Israel was “not responsible” for the Gaza hospital blast based on “overhead imagery, intercepts and open source information.”
Airline stocks are lower after Unite Airlines Holdings warned that the Israeli-Hamas war and higher jet fuel costs would weigh on earnings. Also, Morgan Stanley is down more than -7% after reporting weaker-than-expected Q3 wealth management revenue. A jump in the 10-year T-note yield to a new 16-year high today is bearish for stocks.
Crude prices are up more than +1% at a 2-week high, which boosts energy stocks. Crude prices jumped after Iran’s foreign minister called for an oil embargo against Israel.
Today’s U.S. housing news was mixed for stocks. U.S. Sep housing starts rose by +7.0% to 1.358 million units, which was weaker than expectations for an increase to 1.383 million. However, Sep building permits fell by -4.4% to 1.473 million units, slightly stronger than expectations for a larger decline to 1.453 million units.
Weekly U.S. MBA mortgage applications fell -6.9% in the week ended Oct 13 to 166.9, the weakest reading in 28 years. The mortgage purchase sub-index fell 5.6% to its lowest level in 28 years, and the refinancing sub-index fell -9.9%. The average 30-year fixed mortgage rate rose +0.3 bp to 7.70%, the highest in 23 years.
The markets are discounting a 12% chance that the FOMC will raise the funds rate by +25 bp at the next FOMC meeting that ends on November 1, and a 48% chance for that +25 bp rate hike at the following meeting that ends on December 13. The markets are then expecting the FOMC to begin cutting rates in the second half of 2024 in response to an expected slowdown in the U.S. economy.
U.S. and European bond yields are higher. The 10-year T-note yield rose to a 16-year high of 4.923% and is up +8.5 bp at 4.919%. The 10-year German bund yield rose to a 1-1/2 week high of 2.934% and is up +3.8 bp at 2.920%. The 10-year UK gilt yield rose to a 2-week high of 4.664% and is up +13.8 bp at 4.650%.
Overseas stock markets are mixed. The Euro Stoxx 50 is down -1.19%. China’s Shanghai Composite Index closed down -0.80%. Japan’s Nikkei 225 today closed up +0.01%.
Today’s stock movers…
Albemarle (ALB) is down more than -9% to lead losers in the S&P 500 after Bank of America Global Research downgraded the stock to underperform from neutral.
Morgan Stanley (MS) is down more than -7% after reporting Q3 wealth management net revenue of $6.40 billion, below the consensus of $6.58 billion.
Airline stocks are under pressure today after United Airlines flagged a sharp profit decline should flights to and from Israel remain grounded due to the Israel-Hamas conflict. As a result, United Airlines Holdings (UAL) is down more than -8%. Also, American Airlines Group (AAL), Delta Air Lines (DAL), and Alaska Air Group (ALK) are down more than -4%.
JB Hunt Transport Services (JBHT) is down more than -8% after reporting Q3 EPS of $1.80, weaker than the consensus of $1.83.
Northern Trust (NTRS) is down more than -5% after reporting Q3 net interest income of $469.4 million, below the consensus of $473.3 million.
Lucid Group (LCID) is down more than -8% to lead losers in the Nasdaq 100 after CFRA downgraded the stock to sell from hold with a price target of $4.
Nvidia (NVDA) is down more than -3% after it warned that new U.S. rules on chip exports to China could hinder product development and cause other difficulties.
Sherwin-Williams (SHW) is down more than -3% after Bank of America Global Research downgraded the stock to underperform from neutral.
Citizens Financial Group (CFG) is down more than -3% after reporting Q3 revenue of $2.01 billion, weaker than the consensus of $2.04 billion.
Nasdaq Inc (NDAQ) is up more than +5% to lead gainers in the S&P 500 after reporting Q3 net revenue of $940 million, stronger than the consensus of $933.7 million.
Abbott Laboratories (ABT) is up more than +3% after reporting Q3 net sales of $10.14 billion, better than the consensus of $9.81 billion.
Procter & Gamble (PG) is up more than +2% to lead gainers in the Dow Jones Industrials after reporting Q1 organic revenue rose +7.00%, stronger than the consensus of +5.83%.
Travelers Cos (TRV) is up more than +2% after reporting Q3 net premiums written of $10.49 billion, above the consensus of $10.36 billion.
Floor & Decor Holdings (FND) is up more than +2% after S&P Dow Jones Indices said the company will replace Vicor Corp in the S&P MidCap 400, effective on Friday’s open.
Energy stocks and energy service providers are moving higher, with the price of WTI crude up more than +1% at a 2-week high. As a result, Valero Energy (VLO), Occidental Petroleum (OXY), Hess Corp (HES), Phillips 66 (PSX), Exxon Mobil (XOM), Diamondback Energy (FANG), and Marathon Oil (MRO) are up more than +1%.
Across the markets…
December 10-year T-notes (ZNZ23) this morning are down -11 ticks, and the 10-year T-note yield is up +8.5 bp at 4.919%. Dec T-notes today dropped to a 16-year nearest-futures low, and the 10-year T-note yield climbed to a 16-year high of 4.923%. An increase in inflation expectations is bearish for T-notes after the 10-year breakeven inflation rate today climbed to a 2-3/4 month high of 2.449%. Also, supply pressures are weighing on T-notes as the Treasury will auction $13 billion of 20-year T-bonds later today. Geopolitical risks in the Middle East and weakness in stocks today are limiting losses in T-note prices on increased safe-haven demand for government debt.
The dollar index (DXY00) today is up by +0.12%. The dollar is moderately higher today. Geopolitical risks in the Middle East are boosting safe-haven demand for the dollar after an explosion at a Gaza hospital that killed hundreds complicated diplomatic efforts to contain the Israeli-Hamas conflict. Also, the weakness in stocks today has boosted the liquidity demand for the dollar.
EUR/USD (^EURUSD) today is down by -0.31%. Strength in the dollar today is undercutting the euro. Also, dovish comments today from ECB Governing Council member Stournaras weighed on the euro when he said the turmoil in the Middle East had shifted the balance against any further tightening of ECB monetary policy.
Today’s economic news was bearish for EUR/USD after Eurozone Aug construction output fell -1.1% m/m.
USD/JPY (^USDJPY) today is down by -0.01%. The yen today is little changed. A jump in Japanese government bond yields strengthened the yen after the 10-year T-note yield today rose to a 10-year high of 0.820%. Also, comments today from former BOJ member Sakurai gave the yen a boost when he said the BOJ may scrap its negative interest rate policy by the end of the year to adjust the currently excessive level of monetary easing. Higher T-note yields today limited the upside in the yen.
December gold (GCZ3) today is up +29.0 (+1.50%), and Dec silver (SIZ23) is up +0.075 (+0.33%). Precious metals prices this morning are moderately higher, with gold climbing to a 2-1/2 month high and silver posting a 2-1/2 week high. Concerns about the escalation of the Israeli-Hamas conflict have boosted the safe-haven demand for precious metals as hopes for a diplomatic resolution to the conflict deteriorated after a deadly explosion at a Gaza hospital. Also, an increase in inflation expectations boosted demand for gold as an inflation hedge after the 10-year U.S. breakeven inflation rate today rose to a 2-3/4 month high. A stronger dollar today and higher global bond yields are limiting the upside in precious metals. Also, long liquidation pressures are weighing on gold after long gold holdings in ETFs fell to a 3-1/2 year low on Tuesday.
More Stock Market News from Barchart
Beyond Nvidia: Avoid These At-Risk Chip Stocks as U.S.-China Tensions Rise
Markets Today: Stocks Slip on Set-Back in Diplomatic Efforts to Contain Israel-Hamas Conflict
3 Quality Dividend Stocks to Own During a Financial Crisis
Trading Alert: Calendar Spread Screener Results for October 18th
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Also, American Airlines Group (AAL), Delta Air Lines (DAL), and Alaska Air Group (ALK) are down more than -4%. Floor & Decor Holdings (FND) is up more than +2% after S&P Dow Jones Indices said the company will replace Vicor Corp in the S&P MidCap 400, effective on Friday’s open. Geopolitical risks in the Middle East and weakness in stocks today are limiting losses in T-note prices on increased safe-haven demand for government debt.
|
Also, American Airlines Group (AAL), Delta Air Lines (DAL), and Alaska Air Group (ALK) are down more than -4%. Geopolitical risks in the Middle East and weakness in stocks today are limiting losses in T-note prices on increased safe-haven demand for government debt. Geopolitical risks in the Middle East are boosting safe-haven demand for the dollar after an explosion at a Gaza hospital that killed hundreds complicated diplomatic efforts to contain the Israeli-Hamas conflict.
|
Also, American Airlines Group (AAL), Delta Air Lines (DAL), and Alaska Air Group (ALK) are down more than -4%. Also, the White House today said that the “current” U.S. intelligence assessment is that Israel was “not responsible” for the Gaza hospital blast based on “overhead imagery, intercepts and open source information.” Airline stocks are lower after Unite Airlines Holdings warned that the Israeli-Hamas war and higher jet fuel costs would weigh on earnings. A jump in the 10-year T-note yield to a new 16-year high today is bearish for stocks.
|
Also, American Airlines Group (AAL), Delta Air Lines (DAL), and Alaska Air Group (ALK) are down more than -4%. A jump in the 10-year T-note yield to a new 16-year high today is bearish for stocks. Citizens Financial Group (CFG) is down more than -3% after reporting Q3 revenue of $2.01 billion, weaker than the consensus of $2.04 billion.
|
2165.0
|
2023-10-18 00:00:00 UTC
|
Stocks Close Lower on Heightened Geopolitical Risks and Soaring Bond Yields
|
AAL
|
https://www.nasdaq.com/articles/stocks-close-lower-on-heightened-geopolitical-risks-and-soaring-bond-yields
|
nan
|
nan
|
What you need to know…
The S&P 500 Index ($SPX) (SPY) on Wednesday closed down -1.34%, the Dow Jones Industrials Index ($DOWI) (DIA) closed down -0.98%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed down -1.41%.
Stocks on Wednesday closed sharply lower, with the Nasdaq 100 falling to a 1-week low. Stocks retreated Wednesday on the risks of an escalation in the Israeli-Hamas war after an explosion at a Gaza hospital complicated diplomatic efforts to contain the conflict. After the bombing, the leaders of Jordan, Egypt, and the Palestinian Authority canceled their scheduled summits with President Biden on Wednesday.
Airline stocks moved lower and weighed on the overall market after United Airlines Holdings warned that the Israeli-Hamas war and higher jet fuel costs would weigh on earnings. Also, Morgan Stanley closed down more than -6% after reporting weaker-than-expected Q3 wealth management revenue. A jump in the 10-year T-note yield to a new 16-year high Wednesday was bearish for stocks.
Crude prices rose more than +1% at a 2-week high, which boosted energy stocks. Crude prices jumped after Iran’s foreign minister called for an oil embargo against Israel.
Tuesday’s U.S. housing news was mixed for stocks. U.S. Sep housing starts rose by +7.0% to 1.358 million units, which was weaker than expectations for an increase to 1.383 million. However, Sep building permits fell by -4.4% to 1.473 million units, slightly stronger than expectations for a larger decline to 1.453 million units.
Weekly U.S. MBA mortgage applications fell -6.9% in the week ended Oct 13 to 166.9, the weakest reading in 28 years. The mortgage purchase sub-index fell 5.6% to its lowest level in 28 years, and the refinancing sub-index fell -9.9%. The average 30-year fixed mortgage rate rose +0.3 bp to 7.70%, the highest in 23 years.
Fed comments Wednesday were mixed for T-notes and stocks. On the bearish side, NY Fed President Williams said despite inflation progress, there's still a way to go, and the Fed will need to keep interest rates restrictive "for some time." Conversely, Fed Governor Waller suggests he favors pausing Fed rate hikes when he said, "I believe we can wait, watch, and see how the economy evolves before making definitive moves on the path of the policy rate."
The Fed Beige Book was slightly dovish, stating, "The near-term outlook for the economy was generally described as stable or having slightly weaker growth, and labor market tightness continued to ease across the nation."
The markets are discounting a 6% chance that the FOMC will raise the funds rate by +25 bp at the next FOMC meeting that ends on November 1, and a 42% chance for that +25 bp rate hike at the following meeting that ends on December 13. The markets are then expecting the FOMC to begin cutting rates in the second half of 2024 in response to an expected slowdown in the U.S. economy.
U.S. and European bond yields Wednesday moved higher. The 10-year T-note yield rose to a 16-year high of 4.926% and finished up +6.6 bp at 4.900%. The 10-year German bund yield rose to a 1-1/2 week high of 2.934% and finished up +4.3 bp at 2.924%. The 10-year UK gilt yield rose to a 2-week high of 4.664% and finished up +14.5 bp at 4.657%.
Overseas stock markets on Wednesday settled mixed. The Euro Stoxx 50 closed down -1.12%. China’s Shanghai Composite Index closed down -0.80%. Japan’s Nikkei 225 today closed up +0.01%.
Today’s stock movers…
Albemarle (ALB) closed down more than -9% to lead losers in the S&P 500 after Bank of America Global Research downgraded the stock to underperform from neutral.
Airline stocks were under pressure Wednesday after United Airlines flagged a sharp profit decline should flights to and from Israel remain grounded due to the Israel-Hamas conflict. As a result, United Airlines Holdings (UAL) closed down more than -9%. Also, American Airlines Group (AAL)and Alaska Air Group (ALK) closed down more than -5%, and Delta Air Lines (DAL) closed down more than -4%.
Lucid Group (LCID) closed down more than -9% to lead losers in the Nasdaq 100 after CFRA downgraded the stock to sell from hold with a price target of $4.
JB Hunt Transport Services (JBHT) closed down more than -8% after reporting Q3 EPS of $1.80, weaker than the consensus of $1.83.
Morgan Stanley (MS) closed down more than -6% after reporting Q3 wealth management net revenue of $6.40 billion, below the consensus of $6.58 billion.
Northern Trust (NTRS) closed down more than -6% after reporting Q3 net interest income of $469.4 million, below the consensus of $473.3 million.
Nvidia (NVDA) closed down more than -3% after it warned that new U.S. rules on chip exports to China could hinder product development and cause other difficulties.
Sherwin-Williams (SHW) closed down more than -4% after Bank of America Global Research downgraded the stock to underperform from neutral.
Citizens Financial Group (CFG) closed down more than -5% after reporting Q3 revenue of $2.01 billion, weaker than the consensus of $2.04 billion.
Diabetes stocks rallied after better-than-expected earnings results from Abbott Laboratories eased concerns that the Ozempic weight-loss drug would curb demand for their products. As a result, Dexcom (DXCM) closed up more than +6% to lead gainers in the S&P 500 and Nasdaq 100. Also, DaVita (DVA) closed up more than +3%, and Insulet (PODD) closed up more than +2%.
Abbott Laboratories (ABT) rallied +3.71% after reporting Q3 net sales of $10.14 billion, better than the consensus of $9.81 billion.
Nasdaq Inc (NDAQ) closed up more than +3% after reporting Q3 net revenue of $940 million, stronger than the consensus of $933.7 million.
Procter & Gamble (PG) closed up more than +2% to lead gainers in the Dow Jones Industrials after reporting Q1 organic revenue rose +7.00%, stronger than the consensus of +5.83%.
Energy stocks and energy service providers moved higher, with the price of WTI crude up more than +1% at a 2-week high. As a result, Valero Energy (VLO) and Phillips 66 (PSX) closed up more than +2%. Also, Occidental Petroleum (OXY), APA Corp (APA), Exxon Mobil (XOM), and Marathon Petroleum (MPC) are up more than +1%.
Floor & Decor Holdings (FND) closed up nearly +1% after S&P Dow Jones Indices said the company will replace Vicor Corp in the S&P MidCap 400, effective on Friday’s open.
Across the markets…
December 10-year T-notes (ZNZ23) Wednesday closed down -11 ticks, and the 10-year T-note yield rose +6.6 bp to 4.900%. Dec T-notes Wednesday fell to a new 16-year nearest-futures low, and the 10-year T-note yield climbed to a 16-year high of 4.926%. An increase in inflation expectations was bearish for T-notes after the 10-year breakeven inflation rate Wednesday climbed to a 2-3/4 month high of 2.449%. Also, mediocre demand for the Treasury’s $13 billion of 20-year T-bonds was negative for prices, with a bid-to-cover ratio of 2.59, below the 10-auction average of 2.67. In addition, hawkish comments from NY Fed President Williams weighed on T-notes when he said the Fed will need to keep interest rates restrictive "for some time."
T-notes recovered from their worst levels Wednesday as heightened geopolitical risks in the Middle East undercut stocks and boosted safe-haven demand for T-notes. Also, dovish comments from Fed Governor Waller gave T-notes a lift when he said he favors pausing Fed rate hikes.
More Stock Market News from Barchart
Households Might Be Wealthier. Just Don’t Tell Winnebago and the Rest of the RV Stocks
Dollar Tracks T-note Yields Higher
3 Fintech Stocks Analysts Like Better Than SoFi Technologies
Top AI Stocks To Watch as Wedbush Predicts Eye-Opening Q3 Earnings
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Also, American Airlines Group (AAL)and Alaska Air Group (ALK) closed down more than -5%, and Delta Air Lines (DAL) closed down more than -4%. Diabetes stocks rallied after better-than-expected earnings results from Abbott Laboratories eased concerns that the Ozempic weight-loss drug would curb demand for their products. Procter & Gamble (PG) closed up more than +2% to lead gainers in the Dow Jones Industrials after reporting Q1 organic revenue rose +7.00%, stronger than the consensus of +5.83%.
|
Also, American Airlines Group (AAL)and Alaska Air Group (ALK) closed down more than -5%, and Delta Air Lines (DAL) closed down more than -4%. Airline stocks moved lower and weighed on the overall market after United Airlines Holdings warned that the Israeli-Hamas war and higher jet fuel costs would weigh on earnings. Conversely, Fed Governor Waller suggests he favors pausing Fed rate hikes when he said, "I believe we can wait, watch, and see how the economy evolves before making definitive moves on the path of the policy rate."
|
Also, American Airlines Group (AAL)and Alaska Air Group (ALK) closed down more than -5%, and Delta Air Lines (DAL) closed down more than -4%. What you need to know… The S&P 500 Index ($SPX) (SPY) on Wednesday closed down -1.34%, the Dow Jones Industrials Index ($DOWI) (DIA) closed down -0.98%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed down -1.41%. Across the markets… December 10-year T-notes (ZNZ23) Wednesday closed down -11 ticks, and the 10-year T-note yield rose +6.6 bp to 4.900%.
|
Also, American Airlines Group (AAL)and Alaska Air Group (ALK) closed down more than -5%, and Delta Air Lines (DAL) closed down more than -4%. Airline stocks moved lower and weighed on the overall market after United Airlines Holdings warned that the Israeli-Hamas war and higher jet fuel costs would weigh on earnings. A jump in the 10-year T-note yield to a new 16-year high Wednesday was bearish for stocks.
|
2166.0
|
2023-10-18 00:00:00 UTC
|
Notable Wednesday Option Activity: LVS, ELV, AAL
|
AAL
|
https://www.nasdaq.com/articles/notable-wednesday-option-activity%3A-lvs-elv-aal
|
nan
|
nan
|
Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Las Vegas Sands Corp (Symbol: LVS), where a total of 20,717 contracts have traded so far, representing approximately 2.1 million underlying shares. That amounts to about 44.7% of LVS's average daily trading volume over the past month of 4.6 million shares. Particularly high volume was seen for the $44 strike put option expiring October 20, 2023, with 2,189 contracts trading so far today, representing approximately 218,900 underlying shares of LVS. Below is a chart showing LVS's trailing twelve month trading history, with the $44 strike highlighted in orange:
Elevance Health Inc (Symbol: ELV) options are showing a volume of 4,954 contracts thus far today. That number of contracts represents approximately 495,400 underlying shares, working out to a sizeable 44% of ELV's average daily trading volume over the past month, of 1.1 million shares. Especially high volume was seen for the $480 strike call option expiring October 20, 2023, with 824 contracts trading so far today, representing approximately 82,400 underlying shares of ELV. Below is a chart showing ELV's trailing twelve month trading history, with the $480 strike highlighted in orange:
And American Airlines Group Inc (Symbol: AAL) options are showing a volume of 155,817 contracts thus far today. That number of contracts represents approximately 15.6 million underlying shares, working out to a sizeable 43.5% of AAL's average daily trading volume over the past month, of 35.8 million shares. Particularly high volume was seen for the $10 strike put option expiring January 19, 2024, with 11,837 contracts trading so far today, representing approximately 1.2 million underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $10 strike highlighted in orange:
For the various different available expirations for LVS options, ELV options, or AAL options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
Also see:
Warren Buffett Technology Stocks
EDTK shares outstanding history
VRSN RSI
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Particularly high volume was seen for the $10 strike put option expiring January 19, 2024, with 11,837 contracts trading so far today, representing approximately 1.2 million underlying shares of AAL. Below is a chart showing ELV's trailing twelve month trading history, with the $480 strike highlighted in orange: And American Airlines Group Inc (Symbol: AAL) options are showing a volume of 155,817 contracts thus far today. That number of contracts represents approximately 15.6 million underlying shares, working out to a sizeable 43.5% of AAL's average daily trading volume over the past month, of 35.8 million shares.
|
That number of contracts represents approximately 15.6 million underlying shares, working out to a sizeable 43.5% of AAL's average daily trading volume over the past month, of 35.8 million shares. Below is a chart showing ELV's trailing twelve month trading history, with the $480 strike highlighted in orange: And American Airlines Group Inc (Symbol: AAL) options are showing a volume of 155,817 contracts thus far today. Particularly high volume was seen for the $10 strike put option expiring January 19, 2024, with 11,837 contracts trading so far today, representing approximately 1.2 million underlying shares of AAL.
|
That number of contracts represents approximately 15.6 million underlying shares, working out to a sizeable 43.5% of AAL's average daily trading volume over the past month, of 35.8 million shares. Particularly high volume was seen for the $10 strike put option expiring January 19, 2024, with 11,837 contracts trading so far today, representing approximately 1.2 million underlying shares of AAL. Below is a chart showing ELV's trailing twelve month trading history, with the $480 strike highlighted in orange: And American Airlines Group Inc (Symbol: AAL) options are showing a volume of 155,817 contracts thus far today.
|
That number of contracts represents approximately 15.6 million underlying shares, working out to a sizeable 43.5% of AAL's average daily trading volume over the past month, of 35.8 million shares. Below is a chart showing ELV's trailing twelve month trading history, with the $480 strike highlighted in orange: And American Airlines Group Inc (Symbol: AAL) options are showing a volume of 155,817 contracts thus far today. Particularly high volume was seen for the $10 strike put option expiring January 19, 2024, with 11,837 contracts trading so far today, representing approximately 1.2 million underlying shares of AAL.
|
2167.0
|
2023-10-18 00:00:00 UTC
|
US airline investors worry the travel boom may be coming in for a landing
|
AAL
|
https://www.nasdaq.com/articles/us-airline-investors-worry-the-travel-boom-may-be-coming-in-for-a-landing
|
nan
|
nan
|
By Rajesh Kumar Singh
CHICAGO, Oct 18 (Reuters) - It should be the best of times for U.S. airlines with a travel boom still going strong, but investors are nervous demand may soften as the economy falters, making it harder to protect profits from soaring costs.
"It's really a demand-driven business" said Brian Mulberry, client portfolio manager at Zacks Investment Management. "If there's less demand, then obviously less sales means less profitability."
A struggle to get control of operating costs has also called into question rival Delta Air Lines' DAL.N goal of generating profit of over $7 per share next year, with some analysts now calling the target aspirational. That is a reason why the airline's shares are down 10% this month even after it posted stronger-than-expected quarterly earnings.
Strong demand from travelers has so far allowed carriers to mitigate inflationary pressure with higher fares. While both United and Delta said travel demand is holding up, double-digit declines in airfares year-over-year suggest airline pricing power has peaked.
Falling ticket prices are raising questions as to how airlines will hedge against cost increases. Delta CEO Ed Bastian last week suggested the industry would be able to pass along increased operating costs to consumers.
But that's easier said than done as analysts say a depletion of pandemic savings as well as high interest rates have crimped consumers' tolerance for high fares.
Airlines are likely to see "a more dramatic negative effect" than in the past if there is any downturn in demand because their cost of doing business has gone up materially, Mulberry said.
While airlines have acknowledged the higher costs, including rising fuel prices, they say passenger revenue points to a healthy demand trend.
"Travel remains a top purchase priority and our core customer base is in a healthy financial position," Delta CEO Ed Bastian said last week.
United, which has not forecast profit for 2024, on Tuesday similarly said travel demand remains "strong and steady."
Fuel and wage bills accounted for about 50% and 57% of operating costs in the third quarter at Delta and United, respectively. New labor contracts as well as the higher fuel prices mean cost pressures aren't going away.
Rising fuel prices are estimated to inflate Delta's costs by $400 million in the second half of the year. The airline has trimmed its profit outlook for 2023 to a range of $6.00 to $6.25 a share from $6 to $7 per share estimated in July.
Similarly, United projects its average fuel bill will increase by 11% in the December quarter from a quarter ago.
United said it is also facing headwinds from the Israel-Hamas war.
New Chief Financial Officer Michael Leskinen told investors on Wednesday the company's non-fuel operating costs in the fourth quarter would rise by about 1.5 percentage points if its flights to Tel Aviv remain suspended through the year.
Delays in aircraft and jet-engine deliveries have also forced carriers to fly older planes that are less fuel-efficient and spend more on aircraft maintenance.
American Airlines AAL.O and Alaska Air ALK.N, who will report earnings Thursday, have cut their third-quarter profit estimates due to higher fuel costs.
Melius Research analyst Conor Cunningham said airlines' failure to deliver on their cost target has been "challenging to stomach."
(Reporting by Rajesh Kumar Singh, editing by Ben Klayman and Rod Nickel)
((rajeshkumar.singh@thomsonreuters.com; +1-313-484-5370; Reuters Messaging: rajeshkumar.singh.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
American Airlines AAL.O and Alaska Air ALK.N, who will report earnings Thursday, have cut their third-quarter profit estimates due to higher fuel costs. By Rajesh Kumar Singh CHICAGO, Oct 18 (Reuters) - It should be the best of times for U.S. airlines with a travel boom still going strong, but investors are nervous demand may soften as the economy falters, making it harder to protect profits from soaring costs. "Travel remains a top purchase priority and our core customer base is in a healthy financial position," Delta CEO Ed Bastian said last week.
|
American Airlines AAL.O and Alaska Air ALK.N, who will report earnings Thursday, have cut their third-quarter profit estimates due to higher fuel costs. Delta CEO Ed Bastian last week suggested the industry would be able to pass along increased operating costs to consumers. "Travel remains a top purchase priority and our core customer base is in a healthy financial position," Delta CEO Ed Bastian said last week.
|
American Airlines AAL.O and Alaska Air ALK.N, who will report earnings Thursday, have cut their third-quarter profit estimates due to higher fuel costs. By Rajesh Kumar Singh CHICAGO, Oct 18 (Reuters) - It should be the best of times for U.S. airlines with a travel boom still going strong, but investors are nervous demand may soften as the economy falters, making it harder to protect profits from soaring costs. While airlines have acknowledged the higher costs, including rising fuel prices, they say passenger revenue points to a healthy demand trend.
|
American Airlines AAL.O and Alaska Air ALK.N, who will report earnings Thursday, have cut their third-quarter profit estimates due to higher fuel costs. Delta CEO Ed Bastian last week suggested the industry would be able to pass along increased operating costs to consumers. United, which has not forecast profit for 2024, on Tuesday similarly said travel demand remains "strong and steady."
|
2168.0
|
2023-10-18 00:00:00 UTC
|
Here's Why Investors Should Retain American Airlines (AAL)
|
AAL
|
https://www.nasdaq.com/articles/heres-why-investors-should-retain-american-airlines-aal
|
nan
|
nan
|
American Airlines Group Inc. AAL is benefiting from broadening network and debt-reduction efforts. However, weak guidance is worrisome.
Factors Favoring AAL
American Airlines’ debt-reduction efforts are impressive as well. Management aims to reduce its debt by $15 billion by 2025 end. The company aims to attain this objective through naturally occurring amortization. Also, it intends to utilize surplus cash and free cash flow to pay down prepayable debt. As of Jun 30, 2023, the carrier reduced its debt levels by more than $9 billion from peak levels in mid-2021.
American Airlines is constantly looking to add routes and broaden its network. As part of the expansion drive, the carrier connected Seattle, WA with Bengaluru in 2022. The agreement inked with Gol Linhas in 2022 is another positive.
The agreement inked last year with Boom Supersonic to purchase up to 20 Overture planes from the latter is aimed at modernizing its fleet. The agreement also includes the option for AAL to buy 40 more such high-speed jets.
Some Risks
American Airlines’ management stated that “fuel prices have increased considerably since the company’s initial third-quarter guidance issued on Jul 20, 2023.” The company now expects fuel cost per gallon (inclusive of taxes) to be in the $2.90-$3.00 band (the earlier guidance was in the $2.55-$2.65 range). AAL now expects total revenue per available seat miles (a measure of unit revenue) to decline 5.5-6.5% from third-quarter 2022 actuals (earlier estimate was a 4.5-6.5% decline). Fuel gallon consumption is now estimated to be $1,100 million for the quarter (the earlier view was $1,090 million).
Apart from high fuel costs, the increase in labor costs, due to the deal with pilots, is also a reason for the guidance cut. The deal has provisions for retroactive pay, as a result of which $230 million will be reflected as additional expenses in the September-quarter results. This retroactive expense is expected to impact the third-quarter adjusted operating margin by approximately 1.7 points. Operating margin is now expected to be in the 4-5% band (earlier expectation was 8-10%).
High labor and fuel costs prompted management to lower its third-quarter earnings per share (excluding net special items) view to the range of 20-30 cents from 85-95 cents expected earlier.
Zacks Rank
AAL currently carries Zacks Rank #3 (Hold).
Key Picks
Some better-ranked stocks for investors interested in the Zacks Transportation sector are FedEx Corporation FDX and Ryder System R.
FDX’s consistent efforts to reward shareholders through dividends and buybacks are encouraging. It presently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
FedEx's liquidity position is also impressive. To navigate the weaker-than-expected business environment, FDX is cutting costs.
Ryder, which currently sports a Zacks Rank of 1, is benefiting from its consistent efforts to reward shareholders through dividends and share repurchases.
Despite weak market conditions, Ryder reported better-than-expected earnings in second-quarter 2023. In fact, the company has an impressive earnings surprise history. R has surpassed the Zacks Consensus Estimate in three of the last four quarters (missing the mark once), the average beat being 11.2%.
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
See This Stock Now for Free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Ryder System, Inc. (R) : Free Stock Analysis Report
FedEx Corporation (FDX) : Free Stock Analysis Report
American Airlines Group Inc. (AAL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
American Airlines Group Inc. AAL is benefiting from broadening network and debt-reduction efforts. Factors Favoring AAL American Airlines’ debt-reduction efforts are impressive as well. The agreement also includes the option for AAL to buy 40 more such high-speed jets.
|
American Airlines Group Inc. AAL is benefiting from broadening network and debt-reduction efforts. Click to get this free report Ryder System, Inc. (R) : Free Stock Analysis Report FedEx Corporation (FDX) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. Factors Favoring AAL American Airlines’ debt-reduction efforts are impressive as well.
|
Click to get this free report Ryder System, Inc. (R) : Free Stock Analysis Report FedEx Corporation (FDX) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines Group Inc. AAL is benefiting from broadening network and debt-reduction efforts. Factors Favoring AAL American Airlines’ debt-reduction efforts are impressive as well.
|
Click to get this free report Ryder System, Inc. (R) : Free Stock Analysis Report FedEx Corporation (FDX) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines Group Inc. AAL is benefiting from broadening network and debt-reduction efforts. Factors Favoring AAL American Airlines’ debt-reduction efforts are impressive as well.
|
2169.0
|
2023-10-18 00:00:00 UTC
|
Major airline shares hit turbulence on disappointing profit outlook from United
|
AAL
|
https://www.nasdaq.com/articles/major-airline-shares-hit-turbulence-on-disappointing-profit-outlook-from-united
|
nan
|
nan
|
By Shivansh Tiwary
Oct 18 (Reuters) - Shares of major U.S. airlines fell on Wednesday, after a disappointing fourth-quarter forecast from United Airlines UAL.O a day earlier spooked investors and raised concerns rising costs are denting profits for carriers.
United's shares were down as much as 8%, hitting their lowest in a year, dragging peers Delta Air Lines DAL.N, American Airlines AAL.O and Southwest Airlines LUV.N down about 4% each.
On Tuesday, United forecast adjusted profit for the current quarter in the range of $1.50-$1.80 per share, well below analysts' average expectations of $2.06, according to LSEG data, taking a hit from costs associated with higher jet fuel prices and expensive labor contracts.
Profits at U.S. carriers have come under pressure as jet fuel prices jumped during the July-September quarter on tighter crude oil supplies.
Last week, Delta narrowed its profit outlook for the full year to $6-$6.25 per share, from $6-$7 per share in July.
Meanwhile, a reduction in capacity due to the suspension of flights to Israel is also expected to add to United's non-fuel costs, which are projected to be up as much as 5% in the quarter through December from a year earlier.
"Surging energy prices followed by the Israel-Hamas conflict were the primary culprits, two events that were not factored in anyone's earnings models three months ago," Deutsche Bank analysts wrote in a note.
Rising costs as well as signs of softening domestic travel demand have raised worries about the industry's profitability, sparking a sell-off in airline stocks and prompting analysts to slash their earnings estimates.
Despite a rally in airline stocks this year, shares of United and Delta still trade about 4 and 5 times forward profit estimates, respectively, which is well below the S&P 500's .SPX 19.7 multiple.
"We are facing sizable headwinds with labor and expectation of a new flight attendant agreement and continued higher maintenance expense," United Airlines Chief Financial Officer Michael Leskinen said during anearnings callon Wednesday.
(Reporting by Shivansh Tiwary in Bengaluru; Editing by Krishna Chandra Eluri)
((Shivansh.Tiwary@thomsonreuters.com; +91 9708363192;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
United's shares were down as much as 8%, hitting their lowest in a year, dragging peers Delta Air Lines DAL.N, American Airlines AAL.O and Southwest Airlines LUV.N down about 4% each. On Tuesday, United forecast adjusted profit for the current quarter in the range of $1.50-$1.80 per share, well below analysts' average expectations of $2.06, according to LSEG data, taking a hit from costs associated with higher jet fuel prices and expensive labor contracts. Rising costs as well as signs of softening domestic travel demand have raised worries about the industry's profitability, sparking a sell-off in airline stocks and prompting analysts to slash their earnings estimates.
|
United's shares were down as much as 8%, hitting their lowest in a year, dragging peers Delta Air Lines DAL.N, American Airlines AAL.O and Southwest Airlines LUV.N down about 4% each. By Shivansh Tiwary Oct 18 (Reuters) - Shares of major U.S. airlines fell on Wednesday, after a disappointing fourth-quarter forecast from United Airlines UAL.O a day earlier spooked investors and raised concerns rising costs are denting profits for carriers. On Tuesday, United forecast adjusted profit for the current quarter in the range of $1.50-$1.80 per share, well below analysts' average expectations of $2.06, according to LSEG data, taking a hit from costs associated with higher jet fuel prices and expensive labor contracts.
|
United's shares were down as much as 8%, hitting their lowest in a year, dragging peers Delta Air Lines DAL.N, American Airlines AAL.O and Southwest Airlines LUV.N down about 4% each. By Shivansh Tiwary Oct 18 (Reuters) - Shares of major U.S. airlines fell on Wednesday, after a disappointing fourth-quarter forecast from United Airlines UAL.O a day earlier spooked investors and raised concerns rising costs are denting profits for carriers. On Tuesday, United forecast adjusted profit for the current quarter in the range of $1.50-$1.80 per share, well below analysts' average expectations of $2.06, according to LSEG data, taking a hit from costs associated with higher jet fuel prices and expensive labor contracts.
|
United's shares were down as much as 8%, hitting their lowest in a year, dragging peers Delta Air Lines DAL.N, American Airlines AAL.O and Southwest Airlines LUV.N down about 4% each. On Tuesday, United forecast adjusted profit for the current quarter in the range of $1.50-$1.80 per share, well below analysts' average expectations of $2.06, according to LSEG data, taking a hit from costs associated with higher jet fuel prices and expensive labor contracts. Rising costs as well as signs of softening domestic travel demand have raised worries about the industry's profitability, sparking a sell-off in airline stocks and prompting analysts to slash their earnings estimates.
|
2170.0
|
2023-10-18 00:00:00 UTC
|
Markets Today: Stocks Slip on Set-Back in Diplomatic Efforts to Contain Israel-Hamas Conflict
|
AAL
|
https://www.nasdaq.com/articles/markets-today%3A-stocks-slip-on-set-back-in-diplomatic-efforts-to-contain-israel-hamas
|
nan
|
nan
|
Morning Markets
December E-Mini S&P 500 futures (ESZ23) are down -0.48%, and the Dec Nasdaq 100 E-Mini futures (NQZ23) are down -0.67%.
Stock index futures this morning are moderately lower on this morning’s weaker-than-expected U.S. housing starts report. Also, risks of an escalation in the Israeli-Hamas war weighed on stock index futures after an explosion at a Gaza hospital complicated diplomatic efforts to contain the conflict. After the bombing, the leaders of Jordan, Egypt and the Palestinian Authority canceled their scheduled summits with President Biden, who landed in Israel today. Hamas immediately blamed Israel for the explosion, but Israeli military authorities today offered evidence that the explosion was caused by an errant Hamas missile, not by Israeli aerial bombing. Also, crude oil prices surged more than +2% to a 2-week high after Iran’s foreign minister called for an oil embargo against Israel.
U.S. Sep housing starts rose by +7.0% to 1.358 million units, slightly weaker than expectations for an increase to 1.383 million. However, Sep building permits fell by -4.4% to 1.473 million units, which was slightly stronger than expectations for a larger decline to 1.453 million units.
The markets are discounting an 8% chance that the FOMC will raise the funds rate by +25 bp at the next FOMC meeting that ends on November 1, and a 38% chance for that +25 bp rate hike at the following meeting that ends on December 13. The markets are then expecting the FOMC to begin cutting rates in the second half of 2024 in response to an expected slowdown in the U.S. economy.
U.S. and European bond yields are higher. The 10-year T-note yield rose to a 1-1/2 week high of 4.866% and is up +0.7 bp at 4.841%. The 10-year German bund yield rose to a 1-1/2 week high of 2.921% and is up +1.5 bp at 2.896%. The 10-year UK gilt yield rise to a 1-1/2 week high of 4.592% and is up +7.4 bp at 4.586%.
Overseas stock markets are mixed. The Euro Stoxx 50 is down -0.59%. China’s Shanghai Composite Index closed down -0.80%. Japan’s Nikkei 225 today closed up +0.01%.
The Euro Stoxx 50 today is moderately lower as Middle East tensions ramped up after an explosion at a Gaza hospital killed hundreds. Crude prices surged to a 2-week high after the Iranian foreign minister called for an oil embargo against Israel. European technology stocks retreated, led by a -2% fall in ASML Holdings NV after it reported Q3 order bookings plunged -42% y/y amid a sector-wide slump in the semiconductor industry. Losses in the overall market were limited as Adidas AG jumped more than +5% after it boosted its guidance for the second time in three months. Also, government bond yields declined after ECB Governing Council member Stournaras said the turmoil in the Middle East has shifted the balance against any further tightening of ECB monetary policy.
China’s Shanghai Composite Stock Index today tumbled to a 1-3/4 month low and closed moderately lower. A selloff in property developers led the overall market lower today after distressed builder Country Garden Holdings said it is unlikely to honor all offshore debt payments on time and will default on $15.4 million of dollar bond interest due. The 30-day grace period for payment on the dollar bonds’ interest ends today. Also, Chinese stocks related to AI fell as the U.S. took steps to block China’s access to advanced semiconductor technology. Chinese stocks moved lower today despite better-than-expected economic news on China Q3 GDP, Sep industrial production and retail sales, and Sep employment.
China Q3 GDP rose +4.9% y/y, stronger than expectations of +4.5% y/y.
China Sep industrial production rose +4.5% y/y, stronger than expectations of +4.4% y/y.
China Sep retail sales rose +5.5% y/y, stronger than expectations of +4.9% y/y and the biggest increase in 4 months.
The China Sep surveyed jobless rate unexpectedly fell -0.2 to a nearly 2-year low of 5.0%, showing a stronger labor market than expectations of no change at 5.2%.
Japan’s Nikkei Stock Index today settled little changed. Strength in bank stocks led the overall market higher today after the 10-year Jan JGB bond yield climbed to a new 10-year high. Japanese chip stocks rose after Socionext jumped more than +15% after announcing plans for an advanced 2-nanometer chips in 2025 with its partnership with Arm Holdings Plc and Taiwan Semiconductor Manufacturing Co. Speculation the Japanese government is mulling tax cuts is also supportive for stocks after the Nikkei newspaper reported that Prime Minister Kishida in considering temporary tax reductions in a policy speech to parliament on Monday.
The yen found support today on comments from former BOJ member Sakurai, who said the BOJ may scrap its negative interest rate policy by the end of the year to adjust the currently excessive level of monetary easing.
Pre-Market U.S. Stock Movers
Nvidia (NVDA) slid nearly -2% in pre-market trading after it warned that new U.S. rules on chip exports to China could hinder product development and cause other difficulties.
Morgan Stanley (MS) fell more than -2% in pre-market trading after reporting Q3 wealth management net revenue of $6.40 billion, below the consensus of $6.58 billion.
Interactive Brokers (IBKR) dropped more than -4% in pre-market trading after it tempered its guidance for accounts growth in an earnings call.
Airline stocks are under pressure in pre-market trading after United Airlines flagged a sharp profit decline should flights to and from Israel remain grounded due to the Israel-Hamas conflict. As a result, United Airlines Holdings (UAL) is down more than -5%, and American Airlines Group (AAL), Delta Air Lines (DAL), and Alaska Air Group (ALK) are down more than -1%.
Sherwin-Williams (SHW) fell more than -2% in pre-market trading after Bank of America Global Research downgraded the stock to underperform from neutral.
Citizens Financial Group (CFG) slid more than -3% in pre-market trading after reporting Q3 revenue of $2.01 billion, weaker than the consensus of $2.04 billion.
Albemarle (ALB) dropped more than -3% in pre-market trading after Bank of America Global Research downgraded the stock to underperform from neutral.
Abbott Laboratories (ABT) climbed more than +2% in pre-market trading after reporting Q3 net sales of $10.14 billion, better than the consensus of $9.81 billion.
Viking Therapeutics (VKTX) surged more than +15% in pre-market trading after reporting its GLP-1/GIP receptor significantly reduced liver fat and plasma lipid following 28 days of treatment in a Phase 1 trial.
Editas Medicine (EDIT) climbed more than +3% in pre-market trading after JPMorgan Chase upgraded the stock to neutral from underweight.
Energy stocks and energy service providers are moving higher in pre-market trading with the price of WTI crude up more than +2% to a 2-week high. As a result, Chevron (CVX), Devon Energy (DVN), Exxon Mobil (XOM), Haliburton (HAL), Occidental Petroleum (OXY), Marathon Oil (MRO), Schlumberger (SLB), and Valero Energy (VLO) up more than +1%.
Floor & Decor Holdings (FND) jumped more than +5% in pre-market trading after S&P Dow Jones Indices sad the company will replace Vicor Corp in the S&P MidCap 400, effective on Friday's open.
Travelers Cos (TRV) rose more than +1% in pre-market trading after reporting Q3 net premiums written of $10.49 billion, above the consensus of $10.36 billion.
Earnings Reports (10/18/2023)
Abbott Laboratories (ABT), Citizens Financial Group Inc (CFG), Crown Castle Inc (CCI), Discover Financial Services (DFS), Elevance Health Inc (ELV), Equifax Inc (EFX), Kinder Morgan Inc (KMI), Lam Research Corp (LRCX), Las Vegas Sands Corp (LVS), M&T Bank Corp (MTB), Morgan Stanley (MS), Nasdaq Inc (NDAQ), Netflix Inc (NFLX), Northern Trust Corp (NTRS), PPG Industries Inc (PPG), Procter & Gamble Co/The (PG), State Street Corp (STT), Steel Dynamics Inc (STLD), Tesla Inc (TSLA), Travelers Cos Inc/The (TRV), US Bancorp (USB), Zions Bancorp NA (ZION).
More Stock Market News from Barchart
3 Quality Dividend Stocks to Own During a Financial Crisis
S&P Futures Plunge as Middle East Fears Weigh on Sentiment, Tesla and Netflix Earnings on Tap
Stocks Mostly Lower as Strong U.S. Economic Reports Push Bond Yields Higher
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
As a result, United Airlines Holdings (UAL) is down more than -5%, and American Airlines Group (AAL), Delta Air Lines (DAL), and Alaska Air Group (ALK) are down more than -1%. A selloff in property developers led the overall market lower today after distressed builder Country Garden Holdings said it is unlikely to honor all offshore debt payments on time and will default on $15.4 million of dollar bond interest due. Viking Therapeutics (VKTX) surged more than +15% in pre-market trading after reporting its GLP-1/GIP receptor significantly reduced liver fat and plasma lipid following 28 days of treatment in a Phase 1 trial.
|
As a result, United Airlines Holdings (UAL) is down more than -5%, and American Airlines Group (AAL), Delta Air Lines (DAL), and Alaska Air Group (ALK) are down more than -1%. Chinese stocks moved lower today despite better-than-expected economic news on China Q3 GDP, Sep industrial production and retail sales, and Sep employment. Earnings Reports (10/18/2023) Abbott Laboratories (ABT), Citizens Financial Group Inc (CFG), Crown Castle Inc (CCI), Discover Financial Services (DFS), Elevance Health Inc (ELV), Equifax Inc (EFX), Kinder Morgan Inc (KMI), Lam Research Corp (LRCX), Las Vegas Sands Corp (LVS), M&T Bank Corp (MTB), Morgan Stanley (MS), Nasdaq Inc (NDAQ), Netflix Inc (NFLX), Northern Trust Corp (NTRS), PPG Industries Inc (PPG), Procter & Gamble Co/The (PG), State Street Corp (STT), Steel Dynamics Inc (STLD), Tesla Inc (TSLA), Travelers Cos Inc/The (TRV), US Bancorp (USB), Zions Bancorp NA (ZION).
|
As a result, United Airlines Holdings (UAL) is down more than -5%, and American Airlines Group (AAL), Delta Air Lines (DAL), and Alaska Air Group (ALK) are down more than -1%. Strength in bank stocks led the overall market higher today after the 10-year Jan JGB bond yield climbed to a new 10-year high. Earnings Reports (10/18/2023) Abbott Laboratories (ABT), Citizens Financial Group Inc (CFG), Crown Castle Inc (CCI), Discover Financial Services (DFS), Elevance Health Inc (ELV), Equifax Inc (EFX), Kinder Morgan Inc (KMI), Lam Research Corp (LRCX), Las Vegas Sands Corp (LVS), M&T Bank Corp (MTB), Morgan Stanley (MS), Nasdaq Inc (NDAQ), Netflix Inc (NFLX), Northern Trust Corp (NTRS), PPG Industries Inc (PPG), Procter & Gamble Co/The (PG), State Street Corp (STT), Steel Dynamics Inc (STLD), Tesla Inc (TSLA), Travelers Cos Inc/The (TRV), US Bancorp (USB), Zions Bancorp NA (ZION).
|
As a result, United Airlines Holdings (UAL) is down more than -5%, and American Airlines Group (AAL), Delta Air Lines (DAL), and Alaska Air Group (ALK) are down more than -1%. U.S. and European bond yields are higher. China Q3 GDP rose +4.9% y/y, stronger than expectations of +4.5% y/y.
|
2171.0
|
2023-10-18 00:00:00 UTC
|
US STOCKS-Wall St falls as Middle East tensions drive risk-off mood
|
AAL
|
https://www.nasdaq.com/articles/us-stocks-wall-st-falls-as-middle-east-tensions-drive-risk-off-mood
|
nan
|
nan
|
By Ankika Biswas and Shashwat Chauhan
Oct 18 (Reuters) - Wall Street's main indexes fell on Wednesday as growing tensions in the Middle East dented risk sentiment, with investors also focused on earnings to gauge the impact of inflation and high interest rates on businesses.
U.S. President Joe Biden arrived in Israel, pledging solidarity in its war against Hamas and backing its account that a blast that killed huge numbers of Palestinians at a Gaza hospital appeared to have been caused not by Israel but by its foes.
Demand for safe-haven assets sent gold prices to a more than one-month high, up over 1%, while the U.S. dollar =USD also strengthened.
"The war in Ukraine and the recent events in the Middle East are absolutely weighing on markets and any geopolitical issues and uncertainty will usually create a flight to safety for investments," said Chris Giamo, head of commercial banking at TD Bank.
U.S. Treasury yields, however, rose after data showed U.S. single-family homebuilding rebounded sharply in September.
On the earnings front, Morgan Stanley's MS.N third-quarter profit dropped less than expected as a strong performance in its wealth management division offset a hit from a lull in dealmaking. The company's shares, however, fell 5.4%.
Abbott LaboratoriesABT.N advanced 2.1% after beating third-quarter profit estimates on strong sales of devices, diagnostics products.
Consumer goods maker Procter & GamblePG.N gained 2.8% after its quarterly sales topped market expectations.
EV maker Tesla TSLA.O and streaming services company Netflix NFLX.O are scheduled to report quarterly results after market close. Their shares were down 0.8% and 1.0%, respectively.
"The macro environment of the economy is settling; we're realizing we will likely be in this higher rate environment for a more prolonged period of time," TD Bank's Giamo added.
Several Federal Reserve officials, including New York's John Williams and board governors Christopher Waller and Michelle Bowman will speak later in the day, ahead of Chair Jerome Powell's remarks on Thursday.
Philadelphia Fed president Patrick Harker said in an interview to the Wall Street Journal that the U.S. central bank should extend its pause on interest-rate increases, while Minneapolis Fed President Neel Kashkari cautioned on Tuesday that inflation was "still too high".
At 9:42 a.m. ET, the Dow Jones Industrial Average .DJI was down 87.17 points, or 0.26%, at 33,910.48, the S&P 500 .SPX was down 22.08 points, or 0.50%, at 4,351.12, and the Nasdaq Composite .IXIC was down 95.49 points, or 0.71%, at 13,438.25.
Materials .SPLRCM and industrials .SPLRCI led declines amongst the major S&P 500 sectors, while higher crude prices pushed energy stocks .SPNY higher.
Nvidia NVDA.O fell 2.7% following Tuesday's 4.7% drop on lingering concerns over the Biden administration's plans to halt shipments of more advanced AI chips designed by the company and others to China.
United Airlines HoldingsUAL.O lost 7.2% after forecasting weaker fourth-quarter profit due to higher costs. Rivals American Airlines AAL.O and Delta Air Lines DAL.N also shed 3.9% and 4.2%, respectively.
Declining issues outnumbered advancers by a 3.70-to-1 ratio on the NYSE and by a 2.85-to-1 ratio on the Nasdaq.
The S&P index recorded nine new 52-week highs and 10 new lows, while the Nasdaq recorded 12 new highs and 72 new lows.
(Reporting by Ankika Biswas and Shashwat Chauhan in Bengaluru; additional reporting by Sruthi Shankar; editing by Arun Koyyur and Vinay Dwivedi)
((Ankika.Biswas@thomsonreuters.com; Shashwat.Chauhan@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Rivals American Airlines AAL.O and Delta Air Lines DAL.N also shed 3.9% and 4.2%, respectively. By Ankika Biswas and Shashwat Chauhan Oct 18 (Reuters) - Wall Street's main indexes fell on Wednesday as growing tensions in the Middle East dented risk sentiment, with investors also focused on earnings to gauge the impact of inflation and high interest rates on businesses. Several Federal Reserve officials, including New York's John Williams and board governors Christopher Waller and Michelle Bowman will speak later in the day, ahead of Chair Jerome Powell's remarks on Thursday.
|
Rivals American Airlines AAL.O and Delta Air Lines DAL.N also shed 3.9% and 4.2%, respectively. By Ankika Biswas and Shashwat Chauhan Oct 18 (Reuters) - Wall Street's main indexes fell on Wednesday as growing tensions in the Middle East dented risk sentiment, with investors also focused on earnings to gauge the impact of inflation and high interest rates on businesses. The S&P index recorded nine new 52-week highs and 10 new lows, while the Nasdaq recorded 12 new highs and 72 new lows.
|
Rivals American Airlines AAL.O and Delta Air Lines DAL.N also shed 3.9% and 4.2%, respectively. By Ankika Biswas and Shashwat Chauhan Oct 18 (Reuters) - Wall Street's main indexes fell on Wednesday as growing tensions in the Middle East dented risk sentiment, with investors also focused on earnings to gauge the impact of inflation and high interest rates on businesses. Philadelphia Fed president Patrick Harker said in an interview to the Wall Street Journal that the U.S. central bank should extend its pause on interest-rate increases, while Minneapolis Fed President Neel Kashkari cautioned on Tuesday that inflation was "still too high".
|
Rivals American Airlines AAL.O and Delta Air Lines DAL.N also shed 3.9% and 4.2%, respectively. By Ankika Biswas and Shashwat Chauhan Oct 18 (Reuters) - Wall Street's main indexes fell on Wednesday as growing tensions in the Middle East dented risk sentiment, with investors also focused on earnings to gauge the impact of inflation and high interest rates on businesses. The company's shares, however, fell 5.4%.
|
2172.0
|
2023-10-18 00:00:00 UTC
|
US STOCKS-Futures down on Middle East worries as earnings get into full swing
|
AAL
|
https://www.nasdaq.com/articles/us-stocks-futures-down-on-middle-east-worries-as-earnings-get-into-full-swing
|
nan
|
nan
|
By Ankika Biswas and Shashwat Chauhan
Oct 18 (Reuters) - Futures for Wall Street's main indexes dipped on Wednesday as growing tensions in the Middle East spurred demand for safe-haven assets, with investors also focused on earnings to gauge the impact of inflation and high interest rates on businesses.
A huge explosion at a Gaza hospital killed hundreds of Palestinians, wrecking a diplomatic mission by U.S. President Joe Biden, who arrived in Israel on Wednesday but was snubbed by Arab leaders who called off an emergency summit.
Oil prices surged nearly 3% on concerns about potential supply disruptions, steering an around 1% gain each in energy firms Chevron CVX.N, Exxon Mobil XOM.N and Occidental Petroleum OXY.N in premarket trading.
A demand for safe-haven assets sent gold prices to near one-month highs, while the advance in U.S. Treasury yields stalled on Wednesday.
On the earnings front, consumer goods maker Procter & GamblePG.N edged up 0.2% after its quarterly sales topped market expectations.
Investors would lookout for quarterly updates from U.S. bank Morgan Stanley MS.N, custodian bank State Street STT.N and medical device maker Abbott Laboratories ABT.N before the opening bell.
EV maker Tesla TSLA.O and streaming services company Netflix NFLX.O are scheduled to report quarterly results after market close.
Data on Tuesday showed U.S. retail sales increased more than expected in September. Both the S&P 500 .SPX and the Dow .DJI ended flat on the day.
Several Federal Reserve officials, including New York's John Williams and Board Governors Christopher Waller and Michelle Bowman will speak later in the day, ahead of Chair Jerome Powell's remarks on Thursday.
"The debate whether higher rates are required appears to have been settled at least for the November meeting ... unless Powell springs a surprise tomorrow," Societe Generale strategists said in a note.
Philadelphia Fed president Patrick Harker said in an interview with the Wall Street Journal that the U.S. central bank should extend its pause on interest-rate increases.
Minneapolis Fed President Neel Kashkari said on Tuesday it had taken much longer than expected for inflation to come down, and it was "still too high".
At 7:02 a.m. ET, Dow e-minis 1YMcv1 were down 93 points, or 0.27%, S&P 500 e-minis EScv1 were down 18.5 points, or 0.42%, and Nasdaq 100 e-minis NQcv1 were down 88.25 points, or 0.58%.
Nvidia NVDA.O fell 1.3% following Tuesday's 4.7% drop on lingering concerns over the Biden administration's plans to halt shipments of more advanced AI chips designed by the company and others to China.
United Airlines HoldingsUAL.O lost 5.3% after forecasting weaker fourth-quarter profit due to higher costs. Rivals American Airlines AAL.O and Delta Air Lines DAL.N also shed 1.7% and 1.5%, respectively.
Interactive Brokers GroupIBKR.O fell 3.7% after reporting third-quarter results, with brokerages reducing their price targets on the online broker, citing the company's lowered account growth targets.
Travelers CompaniesTRV.N reported a 14% fall in quarterly profit. Shares of the insurance company were up 0.6%.
(Reporting by Ankika Biswas and Shashwat Chauhan in Bengaluru; Editing by Arun Koyyur and Vinay Dwivedi)
((Ankika.Biswas@thomsonreuters.com; Shashwat.Chauhan@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Rivals American Airlines AAL.O and Delta Air Lines DAL.N also shed 1.7% and 1.5%, respectively. By Ankika Biswas and Shashwat Chauhan Oct 18 (Reuters) - Futures for Wall Street's main indexes dipped on Wednesday as growing tensions in the Middle East spurred demand for safe-haven assets, with investors also focused on earnings to gauge the impact of inflation and high interest rates on businesses. A huge explosion at a Gaza hospital killed hundreds of Palestinians, wrecking a diplomatic mission by U.S. President Joe Biden, who arrived in Israel on Wednesday but was snubbed by Arab leaders who called off an emergency summit.
|
Rivals American Airlines AAL.O and Delta Air Lines DAL.N also shed 1.7% and 1.5%, respectively. By Ankika Biswas and Shashwat Chauhan Oct 18 (Reuters) - Futures for Wall Street's main indexes dipped on Wednesday as growing tensions in the Middle East spurred demand for safe-haven assets, with investors also focused on earnings to gauge the impact of inflation and high interest rates on businesses. ET, Dow e-minis 1YMcv1 were down 93 points, or 0.27%, S&P 500 e-minis EScv1 were down 18.5 points, or 0.42%, and Nasdaq 100 e-minis NQcv1 were down 88.25 points, or 0.58%.
|
Rivals American Airlines AAL.O and Delta Air Lines DAL.N also shed 1.7% and 1.5%, respectively. By Ankika Biswas and Shashwat Chauhan Oct 18 (Reuters) - Futures for Wall Street's main indexes dipped on Wednesday as growing tensions in the Middle East spurred demand for safe-haven assets, with investors also focused on earnings to gauge the impact of inflation and high interest rates on businesses. ET, Dow e-minis 1YMcv1 were down 93 points, or 0.27%, S&P 500 e-minis EScv1 were down 18.5 points, or 0.42%, and Nasdaq 100 e-minis NQcv1 were down 88.25 points, or 0.58%.
|
Rivals American Airlines AAL.O and Delta Air Lines DAL.N also shed 1.7% and 1.5%, respectively. By Ankika Biswas and Shashwat Chauhan Oct 18 (Reuters) - Futures for Wall Street's main indexes dipped on Wednesday as growing tensions in the Middle East spurred demand for safe-haven assets, with investors also focused on earnings to gauge the impact of inflation and high interest rates on businesses. EV maker Tesla TSLA.O and streaming services company Netflix NFLX.O are scheduled to report quarterly results after market close.
|
2173.0
|
2023-10-18 00:00:00 UTC
|
US STOCKS-Futures slip on Middle East worries, earnings gets into full swing
|
AAL
|
https://www.nasdaq.com/articles/us-stocks-futures-slip-on-middle-east-worries-earnings-gets-into-full-swing
|
nan
|
nan
|
For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window.
Futures: S&P down 0.12%, Nasdaq down 0.21%, Dow flat
Oct 18 (Reuters) - Futures for Wall Street's main indexes dipped on Wednesday as growing tensions in the Middle East spurred demand for safe-haven assets, while investors monitored earnings reports for impact of inflation and higher interest rates.
A huge explosion at a Gaza hospital killed hundreds of Palestinians, wrecking a diplomatic mission by U.S. President Joe Biden, who arrived in Israel on Wednesday but was snubbed by Arab leaders who called off an emergency summit.
Oil prices surged over 2% on concerns about potential supply disruptions, steering a 0.9%-1% gain in energy firms Chevron CVX.N, Exxon Mobil XOM.N and Occidental Petroleum OXY.N in premarket trading.
Gold prices rallied to a near one-month high on safe-haven demand.
Investors kept an eye out for earnings from U.S. bank Morgan Stanley MS.N, custodian bank State Street STT.N, regional lenders U.S. Bancorp USB.N and Citizens Financial Group CFG.N during the day.
Procter & Gamble PG.N and Abbott Laboratories ABT.N are also set to report before market open, while Tesla TSLA.O and Netflix NFLX.O are due after the closing bell.
A slew of Federal Reserve officials, including New York's John Williams and Board Governors Christopher Waller and Michelle Bowman will speak later in the day, ahead of Chair Jerome Powell's remarks on Thursday.
Minneapolis Fed President Neel Kashkari said on Tuesday it has taken much longer than expected for inflation to come down, and it is "still too high."
On Tuesday, data showed U.S. retail sales increased more than expected in September, cementing expectations that economic growth accelerated sharply in the third quarter.
At 5:18 a.m. ET, Dow e-minis 1YMcv1 were down 8 points, or 0.02%, S&P 500 e-minis EScv1 were down 5.5 points, or 0.12%, and Nasdaq 100 e-minis NQcv1 were down 31.5 points, or 0.21%.
Nvidia NVDA.O fell 1.1% following Tuesday's 4.7% drop, on lingering concerns over the Biden administration's plans to halt shipments of more advanced AI chips designed by the chipmaker and others to China.
United Airlines HoldingsUAL.O lost 4.7% after forecasting weaker fourth-quarter profit due to higher costs. Rivals American Airlines AAL.O and Delta Air Lines DAL.N also shed 1.1% and 0.6%, respectively.
(Reporting by Ankika Biswas in Bengaluru; Editing by Arun Koyyur)
((Ankika.Biswas@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Rivals American Airlines AAL.O and Delta Air Lines DAL.N also shed 1.1% and 0.6%, respectively. A huge explosion at a Gaza hospital killed hundreds of Palestinians, wrecking a diplomatic mission by U.S. President Joe Biden, who arrived in Israel on Wednesday but was snubbed by Arab leaders who called off an emergency summit. Oil prices surged over 2% on concerns about potential supply disruptions, steering a 0.9%-1% gain in energy firms Chevron CVX.N, Exxon Mobil XOM.N and Occidental Petroleum OXY.N in premarket trading.
|
Rivals American Airlines AAL.O and Delta Air Lines DAL.N also shed 1.1% and 0.6%, respectively. Futures: S&P down 0.12%, Nasdaq down 0.21%, Dow flat Oct 18 (Reuters) - Futures for Wall Street's main indexes dipped on Wednesday as growing tensions in the Middle East spurred demand for safe-haven assets, while investors monitored earnings reports for impact of inflation and higher interest rates. Gold prices rallied to a near one-month high on safe-haven demand.
|
Rivals American Airlines AAL.O and Delta Air Lines DAL.N also shed 1.1% and 0.6%, respectively. Futures: S&P down 0.12%, Nasdaq down 0.21%, Dow flat Oct 18 (Reuters) - Futures for Wall Street's main indexes dipped on Wednesday as growing tensions in the Middle East spurred demand for safe-haven assets, while investors monitored earnings reports for impact of inflation and higher interest rates. On Tuesday, data showed U.S. retail sales increased more than expected in September, cementing expectations that economic growth accelerated sharply in the third quarter.
|
Rivals American Airlines AAL.O and Delta Air Lines DAL.N also shed 1.1% and 0.6%, respectively. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window. Futures: S&P down 0.12%, Nasdaq down 0.21%, Dow flat Oct 18 (Reuters) - Futures for Wall Street's main indexes dipped on Wednesday as growing tensions in the Middle East spurred demand for safe-haven assets, while investors monitored earnings reports for impact of inflation and higher interest rates.
|
2174.0
|
2023-10-18 00:00:00 UTC
|
Should You Pick Delta Stock At $34 After Q3 Beat?
|
AAL
|
https://www.nasdaq.com/articles/should-you-pick-delta-stock-at-%2434-after-q3-beat
|
nan
|
nan
|
Delta (NYSE: DAL) recently reported its Q3 results, with revenues falling in line and earnings beating our estimates. The company reported adjusted revenue of $14.6 billion, up 18% y-o-y. Its adjusted earnings of $2.03 per share were up 34% y-o-y and above our estimate of $1.98 per share. In this note, we discuss Delta’s stock performance, some key takeaways from its recent results, and its valuation.
DAL stock has seen a decline of 10% from levels of $40 in early January 2021 to around $35 now, vs. an increase of about 15% for the S&P 500 over this roughly 3-year period. However, the decrease in DAL stock has been far from consistent. Returns for the stock were -3% in 2021, -16% in 2022, and 4% in 2023 (YTD). In comparison, returns for the S&P 500 have been 27% in 2021, -19% in 2022, and 13% in 2023 (YTD) – indicating an underperformance for the ticker in 2021 and 2023.
In fact, consistently beating the S&P 500 – in good times and bad – has been difficult over recent years for individual stocks; for heavyweights in the industrial sector, including CAT, UPS, and UNP, and even for the mega-cap stars GOOG, TSLA, and MSFT.
In contrast, the Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has outperformed the S&P 500 each year over the same period. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index, less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.
Given the current uncertain macroeconomic environment with high oil prices and elevated interest rates, could DAL face a similar situation as it did in 2021 and 2023 and lose value over the next 12 months – or will it see a recovery? From a valuation perspective, DAL stock looks attractive and will likely see higher levels over time. We estimate Delta’s Valuation to be $51 per share, reflecting a significant 50% upside from its current levels of $34. Our forecast is based on an 8x P/E multiple for DAL and expected earnings of $6.15 on a per-share and adjusted basis for the full year 2023. The company narrowed its earnings outlook to now be in the range of $6.00 and $6.25, compared to its prior range of $6.00 and $7.00. The narrowing of earnings outlook toward the lower end of the range was expected, given the sudden rise in oil prices in recent months. For perspective, the average U.S. Gulf Coast Kerosene Jet fuel price per gallon rose from $2.20 toward the end of April this year to $2.80 now.
Delta’s revenue of $14.6 billion (adjusted) in Q3’23 was driven by a 16% rise in the total available seat miles, partly offset by a 1% decline in passenger revenue per available seat mile. The company saw its adjusted operating margin improve to 13.5% from 11.6% in the prior year quarter. This can be attributed to lower fuel expenses, partly offset by higher non-fuel costs. Higher revenues and margin expansion led to a 34% y-o-y rise in the bottom line to $2.03 on a per-share and adjusted basis. Looking forward, rising fuel prices, a challenging macroeconomic environment, and a likely decline in passenger yields are expected to weigh on Delta’s near-term performance. Still, we believe investors will likely be better off picking DAL at current levels of around $34 for robust gains in the long run.
While DAL stock looks undervalued, it is helpful to see how Delta Air Lines’ Peers fare on metrics that matter. You will find other valuable comparisons for companies across industries at Peer Comparisons.
Returns Oct 2023
MTD [1] 2023
YTD [1] 2017-23
Total [2]
DAL Return -8% 4% -31%
S&P 500 Return 1% 13% 93%
Trefis Reinforced Value Portfolio 0% 23% 531%
[1] Month-to-date and year-to-date as of 10/16/2023
[2] Cumulative total returns since the end of 2016
Invest with Trefis Market-Beating Portfolios
See all Trefis Price Estimates
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
In fact, consistently beating the S&P 500 – in good times and bad – has been difficult over recent years for individual stocks; for heavyweights in the industrial sector, including CAT, UPS, and UNP, and even for the mega-cap stars GOOG, TSLA, and MSFT. Given the current uncertain macroeconomic environment with high oil prices and elevated interest rates, could DAL face a similar situation as it did in 2021 and 2023 and lose value over the next 12 months – or will it see a recovery? Looking forward, rising fuel prices, a challenging macroeconomic environment, and a likely decline in passenger yields are expected to weigh on Delta’s near-term performance.
|
Delta (NYSE: DAL) recently reported its Q3 results, with revenues falling in line and earnings beating our estimates. The narrowing of earnings outlook toward the lower end of the range was expected, given the sudden rise in oil prices in recent months. Delta’s revenue of $14.6 billion (adjusted) in Q3’23 was driven by a 16% rise in the total available seat miles, partly offset by a 1% decline in passenger revenue per available seat mile.
|
Delta (NYSE: DAL) recently reported its Q3 results, with revenues falling in line and earnings beating our estimates. Delta’s revenue of $14.6 billion (adjusted) in Q3’23 was driven by a 16% rise in the total available seat miles, partly offset by a 1% decline in passenger revenue per available seat mile. Total [2] DAL Return -8% 4% -31% S&P 500 Return 1% 13% 93% Trefis Reinforced Value Portfolio 0% 23% 531% [1] Month-to-date and year-to-date as of 10/16/2023 [2] Cumulative total returns since the end of 2016 Invest with Trefis Market-Beating Portfolios See all Trefis Price Estimates The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Delta (NYSE: DAL) recently reported its Q3 results, with revenues falling in line and earnings beating our estimates. From a valuation perspective, DAL stock looks attractive and will likely see higher levels over time. The narrowing of earnings outlook toward the lower end of the range was expected, given the sudden rise in oil prices in recent months.
|
2175.0
|
2023-10-18 00:00:00 UTC
|
Why American Airlines (AAL) Might Surprise This Earnings Season
|
AAL
|
https://www.nasdaq.com/articles/why-american-airlines-aal-might-surprise-this-earnings-season-0
|
nan
|
nan
|
Investors are always looking for stocks that are poised to beat at earnings season and American Airlines Group Inc. AAL may be one such company. The firm has earnings coming up pretty soon, and events are shaping up quite nicely for their report.
That is because American Airlines is seeing favorable earnings estimate revision activity as of late, which is generally a precursor to an earnings beat. After all, analysts raising estimates right before earnings — with the most up-to-date information possible — is a pretty good indicator of some favorable trends underneath the surface for AAL in this report.
In fact, the Most Accurate Estimate for the current quarter is currently at 27 cents per share for AAL, compared to a broader Zacks Consensus Estimate of 26 cents per share. This suggests that analysts have very recently bumped up their estimates for AAL, giving the stock a Zacks Earnings ESP of +2.83% heading into earnings season.
American Airlines Group Inc. Price and EPS Surprise
American Airlines Group Inc. price-eps-surprise | American Airlines Group Inc. Quote
Why is this Important?
A positive reading for the Zacks Earnings ESP has proven to be very powerful in producing both positive surprises, and outperforming the market. Our recent 10-year backtest shows that stocks that have a positive Earnings ESP and a Zacks Rank #3 (Hold) or better show a positive surprise nearly 70% of the time, and have returned over 28% on average in annual returns (see more Top Earnings ESP stocks here).
Given that AAL has a Zacks Rank #3 and an ESP in positive territory, investors might want to consider this stock ahead of earnings. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Clearly, recent earnings estimate revisions suggest that good things are ahead for American Airlines, and that a beat might be in the cards for the upcoming report.
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
See This Stock Now for Free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
American Airlines Group Inc. (AAL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
After all, analysts raising estimates right before earnings — with the most up-to-date information possible — is a pretty good indicator of some favorable trends underneath the surface for AAL in this report. Investors are always looking for stocks that are poised to beat at earnings season and American Airlines Group Inc. AAL may be one such company. In fact, the Most Accurate Estimate for the current quarter is currently at 27 cents per share for AAL, compared to a broader Zacks Consensus Estimate of 26 cents per share.
|
Click to get this free report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. Investors are always looking for stocks that are poised to beat at earnings season and American Airlines Group Inc. AAL may be one such company. After all, analysts raising estimates right before earnings — with the most up-to-date information possible — is a pretty good indicator of some favorable trends underneath the surface for AAL in this report.
|
This suggests that analysts have very recently bumped up their estimates for AAL, giving the stock a Zacks Earnings ESP of +2.83% heading into earnings season. Given that AAL has a Zacks Rank #3 and an ESP in positive territory, investors might want to consider this stock ahead of earnings. Investors are always looking for stocks that are poised to beat at earnings season and American Airlines Group Inc. AAL may be one such company.
|
Given that AAL has a Zacks Rank #3 and an ESP in positive territory, investors might want to consider this stock ahead of earnings. Investors are always looking for stocks that are poised to beat at earnings season and American Airlines Group Inc. AAL may be one such company. After all, analysts raising estimates right before earnings — with the most up-to-date information possible — is a pretty good indicator of some favorable trends underneath the surface for AAL in this report.
|
2176.0
|
2023-10-17 00:00:00 UTC
|
Why American Airlines (AAL) is Poised to Beat Earnings Estimates Again
|
AAL
|
https://www.nasdaq.com/articles/why-american-airlines-aal-is-poised-to-beat-earnings-estimates-again
|
nan
|
nan
|
Have you been searching for a stock that might be well-positioned to maintain its earnings-beat streak in its upcoming report? It is worth considering American Airlines (AAL), which belongs to the Zacks Transportation - Airline industry.
This world's largest airline has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. The average surprise for the last two quarters was 23.26%.
For the last reported quarter, American Airlines came out with earnings of $1.92 per share versus the Zacks Consensus Estimate of $1.58 per share, representing a surprise of 21.52%. For the previous quarter, the company was expected to post earnings of $0.04 per share and it actually produced earnings of $0.05 per share, delivering a surprise of 25%.
Thanks in part to this history, there has been a favorable change in earnings estimates for American Airlines lately. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the stock is positive, which is a great indicator of an earnings beat, particularly when combined with its solid Zacks Rank.
Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
American Airlines has an Earnings ESP of +2.83% at the moment, suggesting that analysts have grown bullish on its near-term earnings potential. When you combine this positive Earnings ESP with the stock's Zacks Rank #3 (Hold), it shows that another beat is possibly around the corner. The company's next earnings report is expected to be released on October 19, 2023.
When the Earnings ESP comes up negative, investors should note that this will reduce the predictive power of the metric. But, a negative value is not indicative of a stock's earnings miss.
Many companies end up beating the consensus EPS estimate, but that may not be the sole basis for their stocks moving higher. On the other hand, some stocks may hold their ground even if they end up missing the consensus estimate.
Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How To Profit From Trillions On Spending For Infrastructure >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
American Airlines Group Inc. (AAL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
It is worth considering American Airlines (AAL), which belongs to the Zacks Transportation - Airline industry. Click to get this free report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
|
It is worth considering American Airlines (AAL), which belongs to the Zacks Transportation - Airline industry. Click to get this free report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time.
|
It is worth considering American Airlines (AAL), which belongs to the Zacks Transportation - Airline industry. Click to get this free report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. For the last reported quarter, American Airlines came out with earnings of $1.92 per share versus the Zacks Consensus Estimate of $1.58 per share, representing a surprise of 21.52%.
|
It is worth considering American Airlines (AAL), which belongs to the Zacks Transportation - Airline industry. Click to get this free report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. For the last reported quarter, American Airlines came out with earnings of $1.92 per share versus the Zacks Consensus Estimate of $1.58 per share, representing a surprise of 21.52%.
|
2177.0
|
2023-10-17 00:00:00 UTC
|
Fuel Costs Likely to Hurt American Airlines' (AAL) Q3 Earnings
|
AAL
|
https://www.nasdaq.com/articles/fuel-costs-likely-to-hurt-american-airlines-aal-q3-earnings
|
nan
|
nan
|
Expenses on fuel represent a significant input cost for an airline company. At American Airlines AAL, fuel costs accounted for roughly 29% of the company’s total operating expenses incurred in 2022.
Oil price has been moving northward recently mainly due to Saudi Arabia and Russia extending voluntary supply cuts. The upward movement in oil prices is not a welcome development for AAL and is likely to hurt its bottom line.
Declining Fuel Costs Aid Q2 Earnings
In second-quarter 2023, oil price declined 6.6% in the April-June period. This boosted the bottom-line performance of airlines including AAL. In the second quarter, total operating costs (on a reported basis) declined 4.1% year over year to $11,892 million.
Aircraft fuel expenses and related taxes decreased to $2,723 million from $4,020 million a year ago. Average fuel price per gallon (including related taxes) declined to $2.62 from $4.03 a year ago.
Picture Changes in Q3
As mentioned above, oil price has been rising (up 28.5% in the July-September period) due to extension of production cut by Saudi Arabia and Russia through the end of the current year. The sharp hike in one of the primary input costs is likely to have dented AAL’s bottom-line performance in the third quarter.
In September, management stated, “fuel prices have increased considerably since the company’s initial third-quarter guidance issued on Jul 20, 2023”. American Airlines now expects fuel cost per gallon (including taxes) in the $2.90-$3.00 band (the earlier guidance was in the $2.55-$2.65 range). This metric is likely to have been high in the quarter under review due to the northward movement in oil prices, thus hurting this Fort Worth, TX-based carrier’s overall quarterly results, which will be announced on Oct 19.
Overall Top & Bottom-Line Projections
Due to high fuel costs, the Zacks Consensus Estimate for third-quarter bottom line is currently pegged at 26 cents per share. This indicates a 62.32% decline from third-quarter 2022 actuals. For quarterly sales, the consensus mark is pegged at $13.52 billion, suggesting a 0.42% increase from third-quarter 2022 levels.
AAL is currently carrying a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
High Fuel Cost: Bane for the Entire Industry
The rise in this key input cost is likely to weigh on results of all airline players. AAL apart, this is likely to dent third-quarter results of fellow airline companies like Alaska Air Group ALK, and Southwest Airlines LUV.
Alaska Air now expects the fuel cost per gallon in the $3.15-$3.25 band (the earlier guidance was in the $2.7-$2.8 range). Southwest Airlines now expects the fuel cost per gallon in the $2.7-$2.8 band (the earlier guidance was in the $2.55-$2.65 range). While Alaska Air will report results on Oct 19, Southwest Airlines will release the same on Oct 26.
ALK is currently carrying a Zacks Rank #3. LUV is currently carrying a Zacks Rank #5 (Strong Sell).
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How To Profit From Trillions On Spending For Infrastructure >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Southwest Airlines Co. (LUV) : Free Stock Analysis Report
American Airlines Group Inc. (AAL) : Free Stock Analysis Report
Alaska Air Group, Inc. (ALK) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
At American Airlines AAL, fuel costs accounted for roughly 29% of the company’s total operating expenses incurred in 2022. The upward movement in oil prices is not a welcome development for AAL and is likely to hurt its bottom line. This boosted the bottom-line performance of airlines including AAL.
|
AAL apart, this is likely to dent third-quarter results of fellow airline companies like Alaska Air Group ALK, and Southwest Airlines LUV. Click to get this free report Southwest Airlines Co. (LUV) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Alaska Air Group, Inc. (ALK) : Free Stock Analysis Report To read this article on Zacks.com click here. At American Airlines AAL, fuel costs accounted for roughly 29% of the company’s total operating expenses incurred in 2022.
|
AAL apart, this is likely to dent third-quarter results of fellow airline companies like Alaska Air Group ALK, and Southwest Airlines LUV. Click to get this free report Southwest Airlines Co. (LUV) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Alaska Air Group, Inc. (ALK) : Free Stock Analysis Report To read this article on Zacks.com click here. At American Airlines AAL, fuel costs accounted for roughly 29% of the company’s total operating expenses incurred in 2022.
|
AAL apart, this is likely to dent third-quarter results of fellow airline companies like Alaska Air Group ALK, and Southwest Airlines LUV. At American Airlines AAL, fuel costs accounted for roughly 29% of the company’s total operating expenses incurred in 2022. The upward movement in oil prices is not a welcome development for AAL and is likely to hurt its bottom line.
|
2178.0
|
2023-10-16 00:00:00 UTC
|
4 Stocks That Moved the Market in September
|
AAL
|
https://www.nasdaq.com/articles/4-stocks-that-moved-the-market-in-september
|
nan
|
nan
|
September was a rough month in the stock market, as the S&P 500 fell 4.9%. But investors can gain an advantage by understanding the forces that drove certain stocks higher or lower. You can prepare yourself for upcoming market trends by digging deeper beyond the headlines. It's always a good idea to review key trends to ensure that your portfolio allocation is aligned with long-term goals and short-term drivers. These four stocks had major moves last month that illustrate some of the important forces that are influencing the market right now.
1. Target
Target (NYSE: TGT) shares slumped by 12.6% in September thanks to a number of gloomy macroeconomic indicators and headlines. The monthly retail sales data showed weakness in consumer goods, especially automobiles and other durables. Transaction data released by payment processors also suggested a pullback in household spending.
That all coincided with an unexpected slowdown in new housing starts, which is a strongly negative indicator of consumer confidence. It's taken a long time, but high interest rates are finally translating to clear signs of consumer strain. Consumer budgets are tightening as a softening job market is combining with inflation, expensive borrowing costs, and higher lending standards.
That flurry of shaky economic data came on the heels of a tough quarterly earnings season for consumer stocks and retailers. Target was one of several large retailers that published disappointing financial results and gloomy forward-looking commentary in August. Top-line stagnation combined with profit margin compression to paint an ugly picture for cash flows over the next few quarters.
Image source: Getty Images.
Target was probably the highest-profile casualty of this trend, but there were several others that shared the drop. Dollar General and Dollar Tree both moved lower as investors grew concerned about their profit margins. Walmart stock held up much better, thanks to its ability to manage through weak periods, but it still dropped. A handful of retailers and consumer stocks were spared losses, but it's an overall bearish signal for the economy as a whole.
2. Boeing
Boeing (NYSE: BA) was another conspicuously weak performer in September, along with several of its major airline customers. The aircraft manufacturer provided forward-looking commentary at an investor conference that caused investors to doubt the company's ability to meet its previous forecasts for the full year.
Boeing sells low volumes of extremely high-cost items to customers that are highly sensitive to economic cycles. Boeing itself has high fixed costs and a debt-heavy balance sheet that that pulls more than $10 billion of cash out of the company in the form of interest and principal repayments.
Boeing also has almost $80 billion worth of inventory on its balance sheet, which can quickly become less liquid during tough times. These factors make the aerospace stock exceptionally sensitive to economic cycles and interest rates, and September's major economic news suggested that we should expect high interest rates and weak aggregate demand for multiple quarters to come.
Major airlines obviously have a different business model from Boeing, but they share some of the same characteristics and key business drivers. September's price charts for major airlines United, Delta, Southwest, and American Airlines were strikingly similar to one another and to Boeing last month, illustrating the powerful market forces that dictate performance for these sorts of companies. Debt-laden cyclical stocks are likely to remain volatile over the next few quarters.
BA data by YCharts
3. Nvidia
Nvidia's (NASDAQ: NVDA) 12% dip in September wasn't as extreme as some other stocks', but it exerts a ton of pressure on index performance with its trillion-dollar market cap. Semiconductor stocks struggled last month, thanks to growing concerns that demand is weaker than previously forecast, especially in artificial intelligence (AI) applications that have been fueling the sector's returns.
Losses among growth stocks and the tech sector outpaced the market average last month. The Nasdaq Composite index, which is generally heavier on tech and growth stocks, fell 5.8% in September, nearly a full percentage point more than the S&P. The pain was especially bad after the Fed's announcement that interest rates are likely to remain high for the foreseeable future.
Investor risk tolerance deteriorated in September, making it tough for stocks with lofty valuation ratios like Nvidia. The semiconductor powerhouse is the most glaring example of a wider market trend that points to overall bearish sentiment for the time being. Growth investors need to maintain a long-term strategy and prepare for volatility in the short term.
4. Dell
On the other side of the coin, Dell (NYSE: DELL) showed investors that there's still room for optimism in the stock market. Dell crushed Wall Street's revenue forecasts, and reported an upbeat outlook for the next year. That was in contrast to a gloomy report from its rival, HP, which had dampened expectations for all companies in the sector.
Dell's better-than-expected results and explicit focus on the opportunities created by AI were the fuel necessary for the stock to break free of broader market trends, soaring 22.5%.
Dell rose after reporting earnings, it capitalized on investor hype around AI, and it was bouncing back from previously lowered expectations. These were a very specific set of circumstances that caused the stock to overcome macro headwinds. While it won't always be that combination of catalysts, investors should still recognize that returns can be generated when companies report unexpected good news and stock valuations are reasonable.
The stock market might be volatile over the next few months, but it's not all doom and gloom. Stay allocated for long-term growth.
10 stocks we like better than Target
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Target wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of October 9, 2023
Ryan Downie has positions in Nvidia. The Motley Fool has positions in and recommends HP, Nvidia, Target, and Walmart. The Motley Fool recommends Delta Air Lines and Southwest Airlines. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Semiconductor stocks struggled last month, thanks to growing concerns that demand is weaker than previously forecast, especially in artificial intelligence (AI) applications that have been fueling the sector's returns. Dell's better-than-expected results and explicit focus on the opportunities created by AI were the fuel necessary for the stock to break free of broader market trends, soaring 22.5%. While it won't always be that combination of catalysts, investors should still recognize that returns can be generated when companies report unexpected good news and stock valuations are reasonable.
|
The monthly retail sales data showed weakness in consumer goods, especially automobiles and other durables. These factors make the aerospace stock exceptionally sensitive to economic cycles and interest rates, and September's major economic news suggested that we should expect high interest rates and weak aggregate demand for multiple quarters to come. While it won't always be that combination of catalysts, investors should still recognize that returns can be generated when companies report unexpected good news and stock valuations are reasonable.
|
These factors make the aerospace stock exceptionally sensitive to economic cycles and interest rates, and September's major economic news suggested that we should expect high interest rates and weak aggregate demand for multiple quarters to come. Dell On the other side of the coin, Dell (NYSE: DELL) showed investors that there's still room for optimism in the stock market. 10 stocks we like better than Target When our analyst team has a stock tip, it can pay to listen.
|
Target Target (NYSE: TGT) shares slumped by 12.6% in September thanks to a number of gloomy macroeconomic indicators and headlines. Dell rose after reporting earnings, it capitalized on investor hype around AI, and it was bouncing back from previously lowered expectations. The Motley Fool has positions in and recommends HP, Nvidia, Target, and Walmart.
|
2179.0
|
2023-10-16 00:00:00 UTC
|
3 Stocks to Avoid This Week
|
AAL
|
https://www.nasdaq.com/articles/3-stocks-to-avoid-this-week-100
|
nan
|
nan
|
Wall Street inched higher last week. I thought my three stocks to avoid for that week -- Walgreens Boots Alliance, Equinix, and Carvana -- were going to lose to the market. They rose 7%, climbed 3%, and fell 10%, respectively, for an average that was flat for the week.
The S&P 500 moved 0.4% higher, so I was right. I have been correct in 65 of the past 103 weeks, or 63% of the time.
Let's turn our attention to the current week. I see Carnival (NYSE: CCL), Cohen & Steers (NYSE: CNS), and American Airlines (NASDAQ: AAL) as stocks you might want to consider steering clear of this week. Let's go over my near-term concerns with all three investments.
1. Carnival
My view hasn't changed on the world's largest cruise line operator. I am bullish on Carnival, and believe it's at an attractive entry point for long-term investors. It had an encouraging financial update last month, finally turning a profit after 14 consecutive losses. Demand is strong, as bookings are strong at premium rates. Carnival is at the point where it's finally starting to shore up its balance sheet after years of piling on leverage and dilution.
Singling Carnival out is more about the rough waters facing cruise lines in the near term. The political upheaval in the Middle East is going to create more unrest. It's hard to get excited about boarding a ship to visit exotic ports of call when there's turmoil that could make international travel treacherous.
Image source: Getty Images.
Carnival will be fine in the long run. The next few weeks could be challenging for the travel industry in general, hitting the cruise lines particularly hard. The stock market itself is also susceptible. Stocks somehow crept higher last week, but there could be more tricks than treats as we head into Halloween with the start of earnings season. As a high-beta stock, Carnival is vulnerable to the next market pullback.
2. Cohen & Steers
It's a tricky time to be an investment manager, especially one that specializes in real estate and other income-producing real and alternative assets. Cohen & Steers operates several long-running mutual funds, of the open- and closed-end variety. The real estate market itself is struggling in this environment of high borrowing costs. The investment manager's offerings are also struggling to stand out as income investors flock to the low-risk realm of high-yielding money market funds.
Revenue has declined for four consecutive quarters, and it should be more of the same when Cohen & Steers reports its third-quarter results on Wednesday afternoon. The news should also be problematic on the other end of the income statement. Wall Street profit targets have been inching lower in recent weeks, and Cohen & Steers fell short of analyst estimates last time out.
3. American Airlines
There is turbulence in the airline stocks. American Airlines hit a 52-week low on Friday. A rival air carrier took a hit last week after falling short of quarterly revenue expectations and hosing down its full-year earnings guidance. Throw in geopolitical upheaval that threatens to keep international travel in check and you have what could be a bumpy flight for investors in the near term.
American Airlines reports fresh financials on Thursday morning. Investors were already bracing for a rough performance. Pesky fuel prices and rising labor costs are weighing on the bottom line and the iffy economy may nip demand on the top line. Analysts that were expecting American to post net income of $0.91 a share for the third quarter two months ago were down to $0.62 a share a month later and down to $0.25 a share heading into this week's big reveal.
The stock market is always on the move. If you're looking for safe stocks, you aren't likely to find them in Walgreens Boots Alliance, Cohen & Steers, and American Airlines this week.
10 stocks we like better than Carnival Corp.
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Carnival Corp. wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of October 13, 2023
Rick Munarriz has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Equinix. The Motley Fool recommends Carnival Corp. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
I see Carnival (NYSE: CCL), Cohen & Steers (NYSE: CNS), and American Airlines (NASDAQ: AAL) as stocks you might want to consider steering clear of this week. The investment manager's offerings are also struggling to stand out as income investors flock to the low-risk realm of high-yielding money market funds. Wall Street profit targets have been inching lower in recent weeks, and Cohen & Steers fell short of analyst estimates last time out.
|
I see Carnival (NYSE: CCL), Cohen & Steers (NYSE: CNS), and American Airlines (NASDAQ: AAL) as stocks you might want to consider steering clear of this week. Wall Street profit targets have been inching lower in recent weeks, and Cohen & Steers fell short of analyst estimates last time out. If you're looking for safe stocks, you aren't likely to find them in Walgreens Boots Alliance, Cohen & Steers, and American Airlines this week.
|
I see Carnival (NYSE: CCL), Cohen & Steers (NYSE: CNS), and American Airlines (NASDAQ: AAL) as stocks you might want to consider steering clear of this week. If you're looking for safe stocks, you aren't likely to find them in Walgreens Boots Alliance, Cohen & Steers, and American Airlines this week. See the 10 stocks *Stock Advisor returns as of October 13, 2023 Rick Munarriz has no position in any of the stocks mentioned.
|
I see Carnival (NYSE: CCL), Cohen & Steers (NYSE: CNS), and American Airlines (NASDAQ: AAL) as stocks you might want to consider steering clear of this week. Carnival My view hasn't changed on the world's largest cruise line operator. Wall Street profit targets have been inching lower in recent weeks, and Cohen & Steers fell short of analyst estimates last time out.
|
2180.0
|
2023-10-16 00:00:00 UTC
|
Option Volatility And Earnings Report For October 16 - 20
|
AAL
|
https://www.nasdaq.com/articles/option-volatility-and-earnings-report-for-october-16-20
|
nan
|
nan
|
Earnings season kicked off last week and it’s stepping up a gear this week with a huge number of big names set to report. This week we have Tesla (TSLA), Johnson & Johnson (JNJ), Bank of America (BAC), Netflix (NFLX), Morgan Stanley (MS), American Express (AXP), Lockheed Martin (LMT) and Goldman Sachs (GS) all set to report.
Before a company reports earnings, implied volatility is usually high because the market is unsure about the outcome of the report. Speculators and hedgers create huge demand for the company’s options which increases the implied volatility, and therefore, the price of options.
After the earnings announcement, implied volatility usually drops back down to normal levels.
Let’s take a look at the expected range for these stocks. To calculate the expected range, look up the option chain and add together the price of the at-the-money put option and the at-the-money call option. Use the first expiry date after the earnings date. While this approach is not as accurate as a detailed calculation, it does serve as a reasonably accurate estimate.
Monday
SCHW – 7.6%
Tuesday
JNJ – 2.9%
BAC – 5.2%
LMT – 3.8%
GS – 4.3%
IBKR – 4.9%
UAL – 7.2%
Wednesday
TSLA – 7.0%
PG – 3.9%
ABT – 5.1%
NFLX – 8.3%
MS – 4.9%
USB – 6.1%
LVS – 5.5%
Thursday
TSM – 5.0%
PM – 3.4%
UNP – 4.1%
T – 5.1%
ISRG – 8.5%
BX – 5.0%
FCX – 5.3%
Friday
AXP – 4.4%
SLB – 4.6%
Option traders can use these expected moves to structure trades. Bearish traders can look at selling bear call spreads outside the expected range.
Bullish traders can sell bull put spreads outside the expected range, or look at naked puts for those with a higher risk tolerance.
Neutral traders can look at iron condors. When trading iron condors over earnings, it is best to keep the short strikes outside the expected range.
When trading options over earnings, it is best to stick to risk defined strategies and keep position size small. If the stock makes a larger than expected move and the trade suffers a full loss, it should not have more than a 1-3% effect on your portfolio.
Stocks With High Implied Volatility
We can use Barchart’s Stock Screener to find other stocks with high implied volatility.
Let’s run thestock screenerwith the following filters:
Total call volume: Greater than 2,000
Market Cap: Greater than 40 billion
IV Percentile: Greater than 50%
This screener produces the following results sorted by IV Percentile. Not many stocks with high volatility at the moment.
You can refer to this article for details of how to find option trades for this earnings season.
Last Week’s Earnings Moves
Last week’s we only had one company of interest report earnings:
PEP +1.9% vs 3.7% expected
DPZ -1.1% vs 7.1% expected
WBA +7.0% vs 7.9% expected
DAL -2.3% vs 5.2% expected
JPM +1.5% vs 3.7% expected
UNH +2.6% vs 3.2% expected
C -0.2% vs 4.6% expected
WFC +3.1% vs 5.0% expected
PNC -2.6% vs 4.8% expected
BLK -1.3% vs 3.9% expected
Overall, there were 10 out of 10 that stayed within the expected range.
Changes In Open Interest
DAL, META, AAPL, GOOGL and AAL saw some of the largest changes in open interest last week.
Other stocks with large changes in open interest are shown below:
Please remember that options are risky, and investors can lose 100% of their investment. This article is for education purposes only and not a trade recommendation. Remember to always do your own due diligence and consult your financial advisor before making any investment decisions.
More Stock Market News from Barchart
3 Dividend Aristocrats to Defend Your Portfolio in Q4
Stocks End Mostly Lower on Geopolitical Risks in the Middle East
3 Cannabis Stocks Analysts Like Better Than Canopy Growth
Should You Buy the Dip in Chewy Stock?
On the date of publication, Gavin McMaster did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Changes In Open Interest DAL, META, AAPL, GOOGL and AAL saw some of the largest changes in open interest last week. This week we have Tesla (TSLA), Johnson & Johnson (JNJ), Bank of America (BAC), Netflix (NFLX), Morgan Stanley (MS), American Express (AXP), Lockheed Martin (LMT) and Goldman Sachs (GS) all set to report. If the stock makes a larger than expected move and the trade suffers a full loss, it should not have more than a 1-3% effect on your portfolio.
|
Changes In Open Interest DAL, META, AAPL, GOOGL and AAL saw some of the largest changes in open interest last week. This week we have Tesla (TSLA), Johnson & Johnson (JNJ), Bank of America (BAC), Netflix (NFLX), Morgan Stanley (MS), American Express (AXP), Lockheed Martin (LMT) and Goldman Sachs (GS) all set to report. Stocks With High Implied Volatility We can use Barchart’s Stock Screener to find other stocks with high implied volatility.
|
Changes In Open Interest DAL, META, AAPL, GOOGL and AAL saw some of the largest changes in open interest last week. To calculate the expected range, look up the option chain and add together the price of the at-the-money put option and the at-the-money call option. Stocks With High Implied Volatility We can use Barchart’s Stock Screener to find other stocks with high implied volatility.
|
Changes In Open Interest DAL, META, AAPL, GOOGL and AAL saw some of the largest changes in open interest last week. Option traders can use these expected moves to structure trades. You can refer to this article for details of how to find option trades for this earnings season.
|
2181.0
|
2023-10-16 00:00:00 UTC
|
Stocks Set to Open Higher as Investors Await Powell Speech and Corporate Earnings
|
AAL
|
https://www.nasdaq.com/articles/stocks-set-to-open-higher-as-investors-await-powell-speech-and-corporate-earnings
|
nan
|
nan
|
December S&P 500 futures (ESZ23) are up +0.28%, and December Nasdaq 100 E-Mini futures (NQZ23) are up +0.04% this morning as market participants braced for a busy week of corporate earnings while awaiting a key speech by Federal Reserve Chairman Jerome Powell.
In Friday’s trading session, Wall Street’s major averages closed mixed. Dollar General Corporation (DG) soared over +9% and was the top percentage gainer on the benchmark S&P 500 after the retailer announced that Todd Vasos, current Board member and former Chief Executive Officer, had been appointed CEO of the company. Also, Wells Fargo & Company (WFC) gained more than +3%, and JPMorgan Chase & Co (JPM) rose over +1% after reporting better-than-expected Q3 earnings results. In addition, energy stocks surged as the price of WTI crude rose nearly +6%, driven by indications of an imminent ground invasion of Gaza by Israel. On the bearish side, Boeing Co (BA) fell more than -3% after a news report said the planemaker and Spirit AeroSystems had expanded inspections of a production defect affecting 737 Max 8 aircraft. Also, chip stocks retreated, with ON Semiconductor (ON) dropping over -4% and Advanced Micro Devices Inc (AMD) slumping more than -3%.
Economic data on Friday showed that the University of Michigan’s preliminary reading of consumer sentiment came in at 63.0 in October, weaker than expectations of 67.2. Also, the University of Michigan’s October year-ahead inflation expectations unexpectedly rose to +3.8%, stronger than expectations of +3.2%. At the same time, the U.S. import price index stood at +0.1% m/m in September versus the consensus number of +0.5% m/m.
Meanwhile, Philadelphia Fed President Patrick Harker said Friday that disinflation is underway and reiterated his preference for keeping interest rates unchanged unless there is a substantial shift in the data. “Absent a stark turn in what I see in the data and hear from contacts ... I believe that we are at the point where we can hold rates where they are,” Harker said.
U.S. rate futures have priced in a 9.8% probability of a 25 basis point rate increase at the November FOMC meeting and a 30.4% chance of a 25 basis point rate hike at the Fed’s monetary policy committee meeting in December.
Earnings season picks up steam this week, with results expected from several more big banks, including Goldman Sachs (GS), Bank of America (BAC), and Morgan Stanley (MS). Also, major global companies, including Tesla (TSLA), Netflix (NFLX), Johnson & Johnson (JNJ), American Airlines (AAL), United Airlines (UAL), AT&T (T), and Lockheed Martin (LMT), are expected to post quarterly updates this week.
Investors will also be monitoring a spate of economic data this week, including U.S. Retail Sales, Core Retail Sales, Industrial Production, Manufacturing Production, Business Inventories, Building Permits (preliminary), Housing Starts, Crude Oil Inventories, Initial Jobless Claims, Philadelphia Fed Manufacturing Index, and Existing Home Sales.
In addition, Federal Reserve Chairman Jerome Powell will speak at the Economic Club of New York on Thursday. Market participants will be closely watching whether the strong jobs and CPI data for September prompt Powell to deliver hawkish remarks in alignment with the widespread anticipation of higher rates for longer.
Today, all eyes are focused on the U.S. NY Empire State manufacturing index in a couple of hours. Economists, on average, forecast that the October NY Empire State manufacturing index will come in at -7.00, compared to the previous value of +1.90.
Also, investors will likely focus on a speech from Philadelphia Fed President Patrick Harker.
In the bond markets, United States 10-year rates are at 4.681%, up +1.15%.
The Euro Stoxx 50 futures are down -0.12% this morning as investors weighed prospects of an escalation in the Middle East conflict while gearing up for the start of earnings season. Utilities and tech stocks underperformed on Monday, while mining and energy stocks gained ground. Meanwhile, Polish stocks experienced their most significant surge since May 2022, and the Polish zloty strengthened as the country’s opposition party appeared to be on track for a majority following Sunday’s election. In corporate news, Ssab Ab (SSABB.S.DX) rose over +2% after JP Morgan upgraded the Swedish steel company to Overweight from Neutral.
Germany’s WPI and Italy’s CPI data were released today.
The German September WPI stood at +0.2% m/m, weaker than expectations of +0.3% m/m.
The Italian September CPI has been reported at +0.2% m/m and +5.3% y/y, in line with expectations.
Asian stock markets today settled in the red. China’s Shanghai Composite Index (SHCOMP) closed down -0.46%, and Japan’s Nikkei 225 Stock Index (NIK) closed down -2.03%.
China’s Shanghai Composite today closed lower even after the country’s central bank made the biggest medium-term liquidity injection since 2020. The People’s Bank of China injected 789 billion yuan worth of liquidity into the banking system via its one-year medium-term lending facility Monday while keeping the policy rate unchanged at 2.5%. Separately, to improve market sentiment, China’s securities regulator announced on Saturday that it would impose limitations on securities lending activities and tighten scrutiny of improper regulatory arbitrage. Meanwhile, Bloomberg reported that the United States would tighten sweeping measures that limit China’s access to advanced semiconductors and chip manufacturing equipment. In other news, foreign investors sold a net total of 6.5 billion yuan worth of Chinese stocks through the Stock Connect program on Monday. Investor focus is now squarely on Chinese growth data for the third quarter, due later in the week.
“The PBOC continues to show an easing bias in today’s operation. We hold our view that China rates remain a lower-for-longer story on the back of likely continued subpar growth during the current period of economic transition,” said Becky Liu, head of China macro strategy at Standard Chartered Bank.
Japan’s Nikkei 225 Stock Index closed sharply lower today, mirroring the decline seen in the S&P 500 on Friday as concerns over the Israel-Hamas war continued to weigh on sentiment. Heavyweight chip stocks retreated on Monday, tracking U.S. technology stocks, with Tokyo Electron Ltd plunging over -3% and Advantest Corp slumping more than -4%. Investors also adopted a cautious stance regarding Japan as they awaited the release of crucial inflation data for September later this week. On the positive side, Ryohin Keikaku climbed over +8% after the operator of retail outlet brand Muji provided a better-than-expected full-year profit forecast. Also, Lawson Inc. rose more than +2% after boosting its full-year profit guidance on strong performance at its convenience stores. The Nikkei Volatility, which takes into account the implied volatility of Nikkei 225 options, closed up +4.43% to 21.90.
“As risks for the Middle East rose, investors braced for further declines in markets and cut their long positions in stocks,” said Takehiko Masuzawa, head of trading at Phillip Securities Japan.
The Japanese August Industrial Production stood at -0.7% m/m, weaker than expectations of 0.0% m/m.
Pre-Market U.S. Stock Movers
Lululemon Athletica Inc (LULU) climbed over +5% in pre-market trading after S&P Dow Jones Indices announced that the stock would replace Activision Blizzard in the S&P 500 Index, effective Wednesday.
Hubbell Inc (HUBB) gained more than +2% in pre-market trading after S&P Dow Jones Indices said the stock would replace Organon & Co. in the S&P 500 Index, effective Wednesday.
Ehang Holdings Ltd (EH) rose over +2% in pre-market trading after Goldman Sachs upgraded the stock to Buy from Neutral.
Pfizer Inc (PFE) fell more than -2% in pre-market trading after the pharmaceutical giant cut its FY23 revenue and earnings guidance.
KB Home (KBH) dropped over -2% in pre-market trading after Goldman Sachs downgraded the stock to Neutral from Buy.
You can see more pre-market stock movers here
Today’s U.S. Earnings Spotlight: Monday - October 16th
Charles Schwab (SCHW), Equity Lifestyle (ELS), ServisFirst Bancshares (SFBS), Enerpac Tool Group (EPAC), FB Financial (FBK), CrossFirst Bankshares (CFB), Guaranty Bancshares (GNTY).
More Stock Market News from Barchart
Geopolitics, Earnings and Other Key Themes to Watch this Week
From Field to Silo: Trading the Journey of Corn During the Harvest Season
Mastering Downturns: A Guide to Thriving Amidst Market Volatility
PepsiCo's Huge 36% Gain in Q3 Free Cash Flow Shows PEP Stock Is Cheap
On the date of publication, Oleksandr Pylypenko did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Also, major global companies, including Tesla (TSLA), Netflix (NFLX), Johnson & Johnson (JNJ), American Airlines (AAL), United Airlines (UAL), AT&T (T), and Lockheed Martin (LMT), are expected to post quarterly updates this week. Dollar General Corporation (DG) soared over +9% and was the top percentage gainer on the benchmark S&P 500 after the retailer announced that Todd Vasos, current Board member and former Chief Executive Officer, had been appointed CEO of the company. Market participants will be closely watching whether the strong jobs and CPI data for September prompt Powell to deliver hawkish remarks in alignment with the widespread anticipation of higher rates for longer.
|
Also, major global companies, including Tesla (TSLA), Netflix (NFLX), Johnson & Johnson (JNJ), American Airlines (AAL), United Airlines (UAL), AT&T (T), and Lockheed Martin (LMT), are expected to post quarterly updates this week. December S&P 500 futures (ESZ23) are up +0.28%, and December Nasdaq 100 E-Mini futures (NQZ23) are up +0.04% this morning as market participants braced for a busy week of corporate earnings while awaiting a key speech by Federal Reserve Chairman Jerome Powell. Investors will also be monitoring a spate of economic data this week, including U.S. Retail Sales, Core Retail Sales, Industrial Production, Manufacturing Production, Business Inventories, Building Permits (preliminary), Housing Starts, Crude Oil Inventories, Initial Jobless Claims, Philadelphia Fed Manufacturing Index, and Existing Home Sales.
|
Also, major global companies, including Tesla (TSLA), Netflix (NFLX), Johnson & Johnson (JNJ), American Airlines (AAL), United Airlines (UAL), AT&T (T), and Lockheed Martin (LMT), are expected to post quarterly updates this week. Investors will also be monitoring a spate of economic data this week, including U.S. Retail Sales, Core Retail Sales, Industrial Production, Manufacturing Production, Business Inventories, Building Permits (preliminary), Housing Starts, Crude Oil Inventories, Initial Jobless Claims, Philadelphia Fed Manufacturing Index, and Existing Home Sales. Pre-Market U.S. Stock Movers Lululemon Athletica Inc (LULU) climbed over +5% in pre-market trading after S&P Dow Jones Indices announced that the stock would replace Activision Blizzard in the S&P 500 Index, effective Wednesday.
|
Also, major global companies, including Tesla (TSLA), Netflix (NFLX), Johnson & Johnson (JNJ), American Airlines (AAL), United Airlines (UAL), AT&T (T), and Lockheed Martin (LMT), are expected to post quarterly updates this week. Japan’s Nikkei 225 Stock Index closed sharply lower today, mirroring the decline seen in the S&P 500 on Friday as concerns over the Israel-Hamas war continued to weigh on sentiment. “As risks for the Middle East rose, investors braced for further declines in markets and cut their long positions in stocks,” said Takehiko Masuzawa, head of trading at Phillip Securities Japan.
|
2182.0
|
2023-10-16 00:00:00 UTC
|
Stocks Set to Open Mixed as Investors Await Powell Speech and Corporate Earnings
|
AAL
|
https://www.nasdaq.com/articles/stocks-set-to-open-mixed-as-investors-await-powell-speech-and-corporate-earnings
|
nan
|
nan
|
December S&P 500 futures (ESZ23) are up +0.17%, and December Nasdaq 100 E-Mini futures (NQZ23) are down -0.05% this morning as market participants braced for a busy week of corporate earnings while awaiting a key speech by Federal Reserve Chairman Jerome Powell.
In Friday’s trading session, Wall Street’s major averages closed mixed. Dollar General Corporation (DG) soared over +9% and was the top percentage gainer on the benchmark S&P 500 after the retailer announced that Todd Vasos, current Board member and former Chief Executive Officer, had been appointed CEO of the company. Also, Wells Fargo & Company (WFC) gained more than +3%, and JPMorgan Chase & Co (JPM) rose over +1% after reporting better-than-expected Q3 earnings results. In addition, energy stocks surged as the price of WTI crude rose nearly +6%, driven by indications of an imminent ground invasion of Gaza by Israel. On the bearish side, Boeing Co (BA) fell more than -3% after a news report said the planemaker and Spirit AeroSystems had expanded inspections of a production defect affecting 737 Max 8 aircraft. Also, chip stocks retreated, with ON Semiconductor (ON) dropping over -4% and Advanced Micro Devices Inc (AMD) slumping more than -3%.
Economic data on Friday showed that the University of Michigan’s preliminary reading of consumer sentiment came in at 63.0 in October, weaker than expectations of 67.2. Also, the University of Michigan’s October year-ahead inflation expectations unexpectedly rose to +3.8%, stronger than expectations of +3.2%. At the same time, the U.S. import price index stood at +0.1% m/m in September versus the consensus number of +0.5% m/m.
Meanwhile, Philadelphia Fed President Patrick Harker said Friday that disinflation is underway and reiterated his preference for keeping interest rates unchanged unless there is a substantial shift in the data. “Absent a stark turn in what I see in the data and hear from contacts ... I believe that we are at the point where we can hold rates where they are,” Harker said.
U.S. rate futures have priced in a 9.8% probability of a 25 basis point rate increase at the November FOMC meeting and a 30.4% chance of a 25 basis point rate hike at the Fed’s monetary policy committee meeting in December.
Earnings season picks up steam this week, with results expected from several more big banks, including Goldman Sachs (GS), Bank of America (BAC), and Morgan Stanley (MS). Also, major global companies, including Tesla (TSLA), Netflix (NFLX), Johnson & Johnson (JNJ), American Airlines (AAL), United Airlines (UAL), AT&T (T), and Lockheed Martin (LMT), are expected to post quarterly updates this week.
Investors will also be monitoring a spate of economic data this week, including U.S. Retail Sales, Core Retail Sales, Industrial Production, Manufacturing Production, Business Inventories, Building Permits (preliminary), Housing Starts, Crude Oil Inventories, Initial Jobless Claims, Philadelphia Fed Manufacturing Index, and Existing Home Sales.
In addition, Federal Reserve Chairman Jerome Powell will speak at the Economic Club of New York on Thursday. Market participants will be closely watching whether the strong jobs and CPI data for September prompt Powell to deliver hawkish remarks in alignment with the widespread anticipation of higher rates for longer.
Today, all eyes are focused on the U.S. NY Empire State manufacturing index in a couple of hours. Economists, on average, forecast that the October NY Empire State manufacturing index will come in at -7.00, compared to the previous value of +1.90.
Also, investors will likely focus on a speech from Philadelphia Fed President Patrick Harker.
In the bond markets, United States 10-year rates are at 4.681%, up +1.15%.
The Euro Stoxx 50 futures are down -0.12% this morning as investors weighed prospects of an escalation in the Middle East conflict while gearing up for the start of earnings season. Utilities and tech stocks underperformed on Monday, while mining and energy stocks gained ground. Meanwhile, Polish stocks experienced their most significant surge since May 2022, and the Polish zloty strengthened as the country’s opposition party appeared to be on track for a majority following Sunday’s election. In corporate news, Ssab Ab (SSABB.S.DX) rose over +2% after JP Morgan upgraded the Swedish steel company to Overweight from Neutral.
Germany’s WPI and Italy’s CPI data were released today.
The German September WPI stood at +0.2% m/m, weaker than expectations of +0.3% m/m.
The Italian September CPI has been reported at +0.2% m/m and +5.3% y/y, in line with expectations.
Asian stock markets today settled in the red. China’s Shanghai Composite Index (SHCOMP) closed down -0.46%, and Japan’s Nikkei 225 Stock Index (NIK) closed down -2.03%.
China’s Shanghai Composite today closed lower even after the country’s central bank made the biggest medium-term liquidity injection since 2020. The People’s Bank of China injected 789 billion yuan worth of liquidity into the banking system via its one-year medium-term lending facility Monday while keeping the policy rate unchanged at 2.5%. Separately, to improve market sentiment, China’s securities regulator announced on Saturday that it would impose limitations on securities lending activities and tighten scrutiny of improper regulatory arbitrage. Meanwhile, Bloomberg reported that the United States would tighten sweeping measures that limit China’s access to advanced semiconductors and chip manufacturing equipment. In other news, foreign investors sold a net total of 6.5 billion yuan worth of Chinese stocks through the Stock Connect program on Monday. Investor focus is now squarely on Chinese growth data for the third quarter, due later in the week.
“The PBOC continues to show an easing bias in today’s operation. We hold our view that China rates remain a lower-for-longer story on the back of likely continued subpar growth during the current period of economic transition,” said Becky Liu, head of China macro strategy at Standard Chartered Bank.
Japan’s Nikkei 225 Stock Index closed sharply lower today, mirroring the decline seen in the S&P 500 on Friday as concerns over the Israel-Hamas war continued to weigh on sentiment. Heavyweight chip stocks retreated on Monday, tracking U.S. technology stocks, with Tokyo Electron Ltd plunging over -3% and Advantest Corp slumping more than -4%. Investors also adopted a cautious stance regarding Japan as they awaited the release of crucial inflation data for September later this week. On the positive side, Ryohin Keikaku climbed over +8% after the operator of retail outlet brand Muji provided a better-than-expected full-year profit forecast. Also, Lawson Inc. rose more than +2% after boosting its full-year profit guidance on strong performance at its convenience stores. The Nikkei Volatility, which takes into account the implied volatility of Nikkei 225 options, closed up +4.43% to 21.90.
“As risks for the Middle East rose, investors braced for further declines in markets and cut their long positions in stocks,” said Takehiko Masuzawa, head of trading at Phillip Securities Japan.
The Japanese August Industrial Production stood at -0.7% m/m, weaker than expectations of 0.0% m/m.
Pre-Market U.S. Stock Movers
Lululemon Athletica Inc (LULU) climbed over +5% in pre-market trading after S&P Dow Jones Indices announced that the stock would replace Activision Blizzard in the S&P 500 Index, effective Wednesday.
Hubbell Inc (HUBB) gained more than +2% in pre-market trading after S&P Dow Jones Indices said the stock would replace Organon & Co. in the S&P 500 Index, effective Wednesday.
Ehang Holdings Ltd (EH) rose over +2% in pre-market trading after Goldman Sachs upgraded the stock to Buy from Neutral.
Pfizer Inc (PFE) fell more than -2% in pre-market trading after the pharmaceutical giant cut its FY23 revenue and earnings guidance.
KB Home (KBH) dropped over -2% in pre-market trading after Goldman Sachs downgraded the stock to Neutral from Buy.
You can see more pre-market stock movers here
Today’s U.S. Earnings Spotlight: Monday - October 16th
Charles Schwab (SCHW), Equity Lifestyle (ELS), ServisFirst Bancshares (SFBS), Enerpac Tool Group (EPAC), FB Financial (FBK), CrossFirst Bankshares (CFB), Guaranty Bancshares (GNTY).
More Stock Market News from Barchart
Geopolitics, Earnings and Other Key Themes to Watch this Week
From Field to Silo: Trading the Journey of Corn During the Harvest Season
Mastering Downturns: A Guide to Thriving Amidst Market Volatility
PepsiCo's Huge 36% Gain in Q3 Free Cash Flow Shows PEP Stock Is Cheap
On the date of publication, Oleksandr Pylypenko did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Also, major global companies, including Tesla (TSLA), Netflix (NFLX), Johnson & Johnson (JNJ), American Airlines (AAL), United Airlines (UAL), AT&T (T), and Lockheed Martin (LMT), are expected to post quarterly updates this week. Dollar General Corporation (DG) soared over +9% and was the top percentage gainer on the benchmark S&P 500 after the retailer announced that Todd Vasos, current Board member and former Chief Executive Officer, had been appointed CEO of the company. Market participants will be closely watching whether the strong jobs and CPI data for September prompt Powell to deliver hawkish remarks in alignment with the widespread anticipation of higher rates for longer.
|
Also, major global companies, including Tesla (TSLA), Netflix (NFLX), Johnson & Johnson (JNJ), American Airlines (AAL), United Airlines (UAL), AT&T (T), and Lockheed Martin (LMT), are expected to post quarterly updates this week. December S&P 500 futures (ESZ23) are up +0.17%, and December Nasdaq 100 E-Mini futures (NQZ23) are down -0.05% this morning as market participants braced for a busy week of corporate earnings while awaiting a key speech by Federal Reserve Chairman Jerome Powell. Investors will also be monitoring a spate of economic data this week, including U.S. Retail Sales, Core Retail Sales, Industrial Production, Manufacturing Production, Business Inventories, Building Permits (preliminary), Housing Starts, Crude Oil Inventories, Initial Jobless Claims, Philadelphia Fed Manufacturing Index, and Existing Home Sales.
|
Also, major global companies, including Tesla (TSLA), Netflix (NFLX), Johnson & Johnson (JNJ), American Airlines (AAL), United Airlines (UAL), AT&T (T), and Lockheed Martin (LMT), are expected to post quarterly updates this week. Investors will also be monitoring a spate of economic data this week, including U.S. Retail Sales, Core Retail Sales, Industrial Production, Manufacturing Production, Business Inventories, Building Permits (preliminary), Housing Starts, Crude Oil Inventories, Initial Jobless Claims, Philadelphia Fed Manufacturing Index, and Existing Home Sales. Pre-Market U.S. Stock Movers Lululemon Athletica Inc (LULU) climbed over +5% in pre-market trading after S&P Dow Jones Indices announced that the stock would replace Activision Blizzard in the S&P 500 Index, effective Wednesday.
|
Also, major global companies, including Tesla (TSLA), Netflix (NFLX), Johnson & Johnson (JNJ), American Airlines (AAL), United Airlines (UAL), AT&T (T), and Lockheed Martin (LMT), are expected to post quarterly updates this week. Japan’s Nikkei 225 Stock Index closed sharply lower today, mirroring the decline seen in the S&P 500 on Friday as concerns over the Israel-Hamas war continued to weigh on sentiment. “As risks for the Middle East rose, investors braced for further declines in markets and cut their long positions in stocks,” said Takehiko Masuzawa, head of trading at Phillip Securities Japan.
|
2183.0
|
2023-10-13 00:00:00 UTC
|
Wall St Week Ahead-Investors zero in on health of consumer with retail sales, earnings
|
AAL
|
https://www.nasdaq.com/articles/wall-st-week-ahead-investors-zero-in-on-health-of-consumer-with-retail-sales-earnings
|
nan
|
nan
|
By Lewis Krauskopf
NEW YORK, Oct 13 (Reuters) - Investors in the coming week will get a look at the state of U.S. consumers - whose spending drives around two-thirds of the economy - with a U.S. retail sales report and earnings due from Procter & Gamble, Netflix and a slew of banks.
Durable consumer spending has been a key reason for the economy’s resilience in the face of higher interest rates, with a better-than-expected economy supporting stocks this year. The S&P 500 is up about 13% year-to-date, though it has retreated roughly 6% from highs reached in late July.
Retail sales data, due out on Tuesday, may have to walk a tightrope to satisfy investors. A number that is far stronger than expected could stir fears of a rebound in inflation and bolster worries that the Federal Reserve will need to keep rates elevated for longer.
Conversely, a weak number could reignite concerns of an economic downturn that the U.S. has so far managed to avoid, despite the Fed raising borrowing costs to their highest levels in decades.
“It’s hyper-important to us because that’s really what has been resilient in this economy," said Art Hogan, chief market strategist at B Riley Wealth. "We really want to see what consumers are doing versus what they’re saying.”
Retail sales are expected to have risen 0.3% on a monthly basis in September, according to economists polled by Reuters.
As third quarter earnings season heats up, investors are also on guard for signs that the conflict between Israel and Hamas is widening. Investors headed to safe-haven assets such as Treasuries and gold on Friday amid worries the conflict could intensify over the weekend.
There have been some signs that consumer strength may be wavering. A survey on Friday showed U.S. consumer sentiment deteriorated in October, with households expecting higher inflation over the next year. The third straight monthly decline in sentiment reported by the University of Michigan was nearly across all demographic groups.
Major U.S. banks on Friday warned the economy was slowing as customers depleted their savings.
"There are a lot of questions around how the consumer is holding up,” said Walter Todd, chief investment officer at Greenwood Capital.
As earnings reports arrive, investors will also focus on comments from bank executives about whether Americans are defaulting on loans and paying back credit card debt. Bank of America reports results on Tuesday, with a number of regional banks expected in the coming week as well.
Earnings reports from other industries will also offer views on consumer behavior. They include consumer products giant Procter & Gamble , electric vehicle maker Tesla , streaming company Netflix , casino operator Las Vegas Sands and America Airlines Group .
Todd, of Greenwood Capital, is focused on insight from companies about the cumulative effect of "higher inflation and higher rates on the consumer."
"Throw on top of that the student loan payments kicking back up, that should all put incremental pressure on their ability to potentially spend,” he said.
To be sure, a strong retail sales number could also spark concerns, potentially renewing worries that a too-hot economy will push the Fed to take a more hawkish interest rate stance.
Such an outcome could extend a rise in Treasury yields that has pressured stocks in recent weeks. The U.S. 10-year benchmark yield currently stands at 4.65%, after hitting a 16-year high earlier this month.
Jack Ablin, chief investment officer at Cresset Capital, said he is looking for the benchmark Treasury yield to come "off the boil" and fall to around 4.5%, boosting investors' appetite for risk.
"If indeed we see waning strength in consumer spending, that will likely take some of the pressure off interest rates and the Fed," Ablin said. “The conclusions from the consumer next week, I think, is going to be bad news is good news." (Reporting by Lewis Krauskopf; Editing by Ira Iosebashvili and Jonathan Oatis) ((lewis.krauskopf@thomsonreuters.com; 646-223-6082; Reuters Messaging: lewis.krauskopf.thomsonreuters.com@reuters.net, Twitter: @LKrauskopf)) ((Wall St Week Ahead runs every Friday. For thedaily stock marketreport, please click [.N])) Keywords: USA STOCKS/WEEKAHEAD (SCHEDULED COLUMN)
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
By Lewis Krauskopf NEW YORK, Oct 13 (Reuters) - Investors in the coming week will get a look at the state of U.S. consumers - whose spending drives around two-thirds of the economy - with a U.S. retail sales report and earnings due from Procter & Gamble, Netflix and a slew of banks. They include consumer products giant Procter & Gamble , electric vehicle maker Tesla , streaming company Netflix , casino operator Las Vegas Sands and America Airlines Group . (Reporting by Lewis Krauskopf; Editing by Ira Iosebashvili and Jonathan Oatis) ((lewis.krauskopf@thomsonreuters.com; 646-223-6082; Reuters Messaging: lewis.krauskopf.thomsonreuters.com@reuters.net, Twitter: @LKrauskopf)) ((Wall St Week Ahead runs every Friday.
|
By Lewis Krauskopf NEW YORK, Oct 13 (Reuters) - Investors in the coming week will get a look at the state of U.S. consumers - whose spending drives around two-thirds of the economy - with a U.S. retail sales report and earnings due from Procter & Gamble, Netflix and a slew of banks. "There are a lot of questions around how the consumer is holding up,” said Walter Todd, chief investment officer at Greenwood Capital. Bank of America reports results on Tuesday, with a number of regional banks expected in the coming week as well.
|
By Lewis Krauskopf NEW YORK, Oct 13 (Reuters) - Investors in the coming week will get a look at the state of U.S. consumers - whose spending drives around two-thirds of the economy - with a U.S. retail sales report and earnings due from Procter & Gamble, Netflix and a slew of banks. Durable consumer spending has been a key reason for the economy’s resilience in the face of higher interest rates, with a better-than-expected economy supporting stocks this year. To be sure, a strong retail sales number could also spark concerns, potentially renewing worries that a too-hot economy will push the Fed to take a more hawkish interest rate stance.
|
By Lewis Krauskopf NEW YORK, Oct 13 (Reuters) - Investors in the coming week will get a look at the state of U.S. consumers - whose spending drives around two-thirds of the economy - with a U.S. retail sales report and earnings due from Procter & Gamble, Netflix and a slew of banks. Durable consumer spending has been a key reason for the economy’s resilience in the face of higher interest rates, with a better-than-expected economy supporting stocks this year. To be sure, a strong retail sales number could also spark concerns, potentially renewing worries that a too-hot economy will push the Fed to take a more hawkish interest rate stance.
|
2184.0
|
2023-10-12 00:00:00 UTC
|
US STOCKS-Wall St set for subdued open after inflation data
|
AAL
|
https://www.nasdaq.com/articles/us-stocks-wall-st-set-for-subdued-open-after-inflation-data
|
nan
|
nan
|
For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window
September consumer prices rise 0.4% vs 0.3% estimate
Fed officials adopted more cautious stance in September
Delta Air Lines up on quarterly profit beat
Israel says no exceptions to Gaza siege unless hostages freed
Futures mixed: Dow up 0.15%, S&P up 0.08%, Nasdaq flat
Updated at 8:44 a.m. ET/1244 GMT
By Shashwat Chauhan and Ankika Biswas
Oct 12 (Reuters) - Wall Street's main indexes were set for a muted open on Thursday after data showed consumer prices rose more than expected in September, although underlying price pressures eased, cementing bets the Federal Reserve will keep rates steady next month.
The Labor Department report showed U.S. consumer prices rose 0.4% in September versus estimates of a 0.3% rise, according to economists polled by Reuters. Prices rose to 3.7% against estimates of 3.6% in the 12 months through September.
Core CPI, which excludes volatile food and energy prices, rose 0.3% in line with estimates.
"CPI is still headed in the right direction, but markets are just not quite sure yet and don't seem to be liking it," said Robert Pavlik, senior portfolio manager at Dakota Wealth.
"The Fed, in my opinion, is going to remain on hold and probably a little bit more wary of where inflation is settled."
U.S. benchmark 10-year yields rose 4.603%, after trading lower before the consumer prices data.
Another set of data showed jobless claims rose 209,000 for the week ended Oct. 7, lower than an estimated 210,000 rise.
Boston Fed President Susan Collins said on Wednesday while the odds of the economy escaping a recession have grown, it's possible the central bank is not done with interest rate hikes aimed at bringing inflation back to its target.
Remarks from other Fed policymakers, including Atlanta's Raphael Bostic, are also expected on Thursday.
Minutes of the Fed's Sept. 19-20 meeting showed a growing sense of uncertainty around the path of the U.S. economy, with volatile data and tightening financial markets posing risks to growth.
Meanwhile, Israel said there would be no humanitarian exceptions to its siege of the Gaza Strip until all its hostages were freed.
Public broadcaster Kan said the Israeli death toll had risen to more than 1,300, while Gaza authorities said 1,354 Palestinians have been killed and more than 6,000 wounded in retaliatory bombings.
At 8:44 a.m. ET, Dow e-minis 1YMcv1 were up 50 points, or 0.15%, S&P 500 e-minis EScv1 were up 3.5 points, or 0.08%, and Nasdaq 100 e-minis NQcv1 were up 1 points, or 0.01%.
Delta Air LinesDAL.N rose 2.6% in premarket trading after reporting a stronger-than-expected quarterly profit. Other airline stocks such as American Airlines Group AAL.O, Southwest Airlines LUV.N and United Airlines Holdings UAL.O rose more than 1%.
FordF.N fell 2.2% after the United Auto Workers union shut down the company's biggest plant globally.
(Reporting by Shashwat Chauhan and Ankika Biswas in Bengaluru; Additional reporting by Johann M Cherian; Editing by Arun Koyyur and Shounak Dasgupta)
((Shashwat.Chauhan@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Other airline stocks such as American Airlines Group AAL.O, Southwest Airlines LUV.N and United Airlines Holdings UAL.O rose more than 1%. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window September consumer prices rise 0.4% vs 0.3% estimate Fed officials adopted more cautious stance in September Delta Air Lines up on quarterly profit beat Israel says no exceptions to Gaza siege unless hostages freed Futures mixed: Dow up 0.15%, S&P up 0.08%, Nasdaq flat Updated at 8:44 a.m. ET/1244 GMT By Shashwat Chauhan and Ankika Biswas Oct 12 (Reuters) - Wall Street's main indexes were set for a muted open on Thursday after data showed consumer prices rose more than expected in September, although underlying price pressures eased, cementing bets the Federal Reserve will keep rates steady next month. Boston Fed President Susan Collins said on Wednesday while the odds of the economy escaping a recession have grown, it's possible the central bank is not done with interest rate hikes aimed at bringing inflation back to its target.
|
Other airline stocks such as American Airlines Group AAL.O, Southwest Airlines LUV.N and United Airlines Holdings UAL.O rose more than 1%. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window September consumer prices rise 0.4% vs 0.3% estimate Fed officials adopted more cautious stance in September Delta Air Lines up on quarterly profit beat Israel says no exceptions to Gaza siege unless hostages freed Futures mixed: Dow up 0.15%, S&P up 0.08%, Nasdaq flat Updated at 8:44 a.m. ET/1244 GMT By Shashwat Chauhan and Ankika Biswas Oct 12 (Reuters) - Wall Street's main indexes were set for a muted open on Thursday after data showed consumer prices rose more than expected in September, although underlying price pressures eased, cementing bets the Federal Reserve will keep rates steady next month. The Labor Department report showed U.S. consumer prices rose 0.4% in September versus estimates of a 0.3% rise, according to economists polled by Reuters.
|
Other airline stocks such as American Airlines Group AAL.O, Southwest Airlines LUV.N and United Airlines Holdings UAL.O rose more than 1%. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window September consumer prices rise 0.4% vs 0.3% estimate Fed officials adopted more cautious stance in September Delta Air Lines up on quarterly profit beat Israel says no exceptions to Gaza siege unless hostages freed Futures mixed: Dow up 0.15%, S&P up 0.08%, Nasdaq flat Updated at 8:44 a.m. ET/1244 GMT By Shashwat Chauhan and Ankika Biswas Oct 12 (Reuters) - Wall Street's main indexes were set for a muted open on Thursday after data showed consumer prices rose more than expected in September, although underlying price pressures eased, cementing bets the Federal Reserve will keep rates steady next month. The Labor Department report showed U.S. consumer prices rose 0.4% in September versus estimates of a 0.3% rise, according to economists polled by Reuters.
|
Other airline stocks such as American Airlines Group AAL.O, Southwest Airlines LUV.N and United Airlines Holdings UAL.O rose more than 1%. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window September consumer prices rise 0.4% vs 0.3% estimate Fed officials adopted more cautious stance in September Delta Air Lines up on quarterly profit beat Israel says no exceptions to Gaza siege unless hostages freed Futures mixed: Dow up 0.15%, S&P up 0.08%, Nasdaq flat Updated at 8:44 a.m. ET/1244 GMT By Shashwat Chauhan and Ankika Biswas Oct 12 (Reuters) - Wall Street's main indexes were set for a muted open on Thursday after data showed consumer prices rose more than expected in September, although underlying price pressures eased, cementing bets the Federal Reserve will keep rates steady next month. Prices rose to 3.7% against estimates of 3.6% in the 12 months through September.
|
2185.0
|
2023-10-12 00:00:00 UTC
|
Interesting AAL Put And Call Options For December 1st
|
AAL
|
https://www.nasdaq.com/articles/interesting-aal-put-and-call-options-for-december-1st
|
nan
|
nan
|
Investors in American Airlines Group Inc (Symbol: AAL) saw new options begin trading today, for the December 1st expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new December 1st contracts and identified one put and one call contract of particular interest.
The put contract at the $12.00 strike price has a current bid of 65 cents. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $12.00, but will also collect the premium, putting the cost basis of the shares at $11.35 (before broker commissions). To an investor already interested in purchasing shares of AAL, that could represent an attractive alternative to paying $12.15/share today.
Because the $12.00 strike represents an approximate 1% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 5.42% return on the cash commitment, or 39.51% annualized — at Stock Options Channel we call this the YieldBoost.
Below is a chart showing the trailing twelve month trading history for American Airlines Group Inc, and highlighting in green where the $12.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $13.00 strike price has a current bid of 44 cents. If an investor was to purchase shares of AAL stock at the current price level of $12.15/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $13.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 10.62% if the stock gets called away at the December 1st expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if AAL shares really soar, which is why looking at the trailing twelve month trading history for American Airlines Group Inc, as well as studying the business fundamentals becomes important. Below is a chart showing AAL's trailing twelve month trading history, with the $13.00 strike highlighted in red:
Considering the fact that the $13.00 strike represents an approximate 7% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 3.62% boost of extra return to the investor, or 26.41% annualized, which we refer to as the YieldBoost.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 251 trading day closing values as well as today's price of $12.15) to be 37%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Top YieldBoost Calls of the S&P 500 »
Also see:
CPIX YTD Return
Top Ten Hedge Funds Holding GBDC
Top Ten Hedge Funds Holding LNTH
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Of course, a lot of upside could potentially be left on the table if AAL shares really soar, which is why looking at the trailing twelve month trading history for American Airlines Group Inc, as well as studying the business fundamentals becomes important. Below is a chart showing AAL's trailing twelve month trading history, with the $13.00 strike highlighted in red: Considering the fact that the $13.00 strike represents an approximate 7% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in American Airlines Group Inc (Symbol: AAL) saw new options begin trading today, for the December 1st expiration.
|
Below is a chart showing AAL's trailing twelve month trading history, with the $13.00 strike highlighted in red: Considering the fact that the $13.00 strike represents an approximate 7% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in American Airlines Group Inc (Symbol: AAL) saw new options begin trading today, for the December 1st expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new December 1st contracts and identified one put and one call contract of particular interest.
|
Below is a chart showing AAL's trailing twelve month trading history, with the $13.00 strike highlighted in red: Considering the fact that the $13.00 strike represents an approximate 7% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in American Airlines Group Inc (Symbol: AAL) saw new options begin trading today, for the December 1st expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new December 1st contracts and identified one put and one call contract of particular interest.
|
Below is a chart showing AAL's trailing twelve month trading history, with the $13.00 strike highlighted in red: Considering the fact that the $13.00 strike represents an approximate 7% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in American Airlines Group Inc (Symbol: AAL) saw new options begin trading today, for the December 1st expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new December 1st contracts and identified one put and one call contract of particular interest.
|
2186.0
|
2023-10-12 00:00:00 UTC
|
Susquehanna Maintains American Airlines Group (AAL) Neutral Recommendation
|
AAL
|
https://www.nasdaq.com/articles/susquehanna-maintains-american-airlines-group-aal-neutral-recommendation-2
|
nan
|
nan
|
Fintel reports that on October 11, 2023, Susquehanna maintained coverage of American Airlines Group (NASDAQ:AAL) with a Neutral recommendation.
Analyst Price Forecast Suggests 27.15% Upside
As of October 5, 2023, the average one-year price target for American Airlines Group is 15.87. The forecasts range from a low of 9.09 to a high of $24.15. The average price target represents an increase of 27.15% from its latest reported closing price of 12.48.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for American Airlines Group is 51,177MM, a decrease of 3.25%. The projected annual non-GAAP EPS is 1.52.
What is the Fund Sentiment?
There are 1078 funds or institutions reporting positions in American Airlines Group. This is an increase of 38 owner(s) or 3.65% in the last quarter. Average portfolio weight of all funds dedicated to AAL is 0.15%, an increase of 7.19%. Total shares owned by institutions increased in the last three months by 1.35% to 418,768K shares.
The put/call ratio of AAL is 3.29, indicating a bearish outlook.
What are Other Shareholders Doing?
Primecap Management holds 37,318K shares representing 5.71% ownership of the company. In it's prior filing, the firm reported owning 37,738K shares, representing a decrease of 1.13%. The firm increased its portfolio allocation in AAL by 15.25% over the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 20,306K shares representing 3.11% ownership of the company. In it's prior filing, the firm reported owning 20,146K shares, representing an increase of 0.79%. The firm increased its portfolio allocation in AAL by 13.11% over the last quarter.
VPMCX - Vanguard PRIMECAP Fund Investor Shares holds 19,044K shares representing 2.91% ownership of the company. In it's prior filing, the firm reported owning 19,321K shares, representing a decrease of 1.45%. The firm increased its portfolio allocation in AAL by 15.39% over the last quarter.
Renaissance Technologies holds 17,107K shares representing 2.62% ownership of the company. In it's prior filing, the firm reported owning 15,723K shares, representing an increase of 8.09%. The firm increased its portfolio allocation in AAL by 43.72% over the last quarter.
VFINX - Vanguard 500 Index Fund Investor Shares holds 15,544K shares representing 2.38% ownership of the company. In it's prior filing, the firm reported owning 15,180K shares, representing an increase of 2.34%. The firm increased its portfolio allocation in AAL by 12.80% over the last quarter.
American Airlines Group Background Information
(This description is provided by the company.)
American Airlines Group Inc. is the parent company of American Airlines. Together with regional partner American Eagle, American Airlines offers an average of nearly 6,700 flights daily to 350 destinations in 50 countries. American Airlines is a founding member of the oneworld® alliance, whose members and members-elect offer nearly 14,250 flights daily to 1,000 destinations in 150 countries.
Fintel is one of the most comprehensive investing research platforms available to individual investors, traders, financial advisors, and small hedge funds.
Our data covers the world, and includes fundamentals, analyst reports, ownership data and fund sentiment, options sentiment, insider trading, options flow, unusual options trades, and much more. Additionally, our exclusive stock picks are powered by advanced, backtested quantitative models for improved profits.
Click to Learn More
This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Fintel reports that on October 11, 2023, Susquehanna maintained coverage of American Airlines Group (NASDAQ:AAL) with a Neutral recommendation. Average portfolio weight of all funds dedicated to AAL is 0.15%, an increase of 7.19%. The put/call ratio of AAL is 3.29, indicating a bearish outlook.
|
Fintel reports that on October 11, 2023, Susquehanna maintained coverage of American Airlines Group (NASDAQ:AAL) with a Neutral recommendation. Average portfolio weight of all funds dedicated to AAL is 0.15%, an increase of 7.19%. The put/call ratio of AAL is 3.29, indicating a bearish outlook.
|
Fintel reports that on October 11, 2023, Susquehanna maintained coverage of American Airlines Group (NASDAQ:AAL) with a Neutral recommendation. Average portfolio weight of all funds dedicated to AAL is 0.15%, an increase of 7.19%. The put/call ratio of AAL is 3.29, indicating a bearish outlook.
|
Fintel reports that on October 11, 2023, Susquehanna maintained coverage of American Airlines Group (NASDAQ:AAL) with a Neutral recommendation. Average portfolio weight of all funds dedicated to AAL is 0.15%, an increase of 7.19%. The put/call ratio of AAL is 3.29, indicating a bearish outlook.
|
2187.0
|
2023-10-12 00:00:00 UTC
|
Earnings Preview: American Airlines (AAL) Q3 Earnings Expected to Decline
|
AAL
|
https://www.nasdaq.com/articles/earnings-preview%3A-american-airlines-aal-q3-earnings-expected-to-decline
|
nan
|
nan
|
The market expects American Airlines (AAL) to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended September 2023. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.
The earnings report, which is expected to be released on October 19, 2023, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.
While management's discussion of business conditions on theearnings callwill mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.
Zacks Consensus Estimate
This world's largest airline is expected to post quarterly earnings of $0.33 per share in its upcoming report, which represents a year-over-year change of -52.2%.
Revenues are expected to be $13.53 billion, up 0.5% from the year-ago quarter.
Estimate Revisions Trend
The consensus EPS estimate for the quarter has been revised 54.23% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Earnings Whisper
Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for American Airlines?
For American Airlines, the Most Accurate Estimate is the same as the Zacks Consensus Estimate, suggesting that there are no recent analyst views which differ from what have been considered to derive the consensus estimate. This has resulted in an Earnings ESP of 0%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination makes it difficult to conclusively predict that American Airlines will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?
While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that American Airlines would post earnings of $1.58 per share when it actually produced earnings of $1.92, delivering a surprise of +21.52%.
Over the last four quarters, the company has beaten consensus EPS estimates four times.
Bottom Line
An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
American Airlines doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2023. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
American Airlines Group Inc. (AAL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
The market expects American Airlines (AAL) to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended September 2023. Click to get this free report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.
|
The market expects American Airlines (AAL) to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended September 2023. Click to get this free report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
|
The market expects American Airlines (AAL) to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended September 2023. Click to get this free report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate.
|
The market expects American Airlines (AAL) to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended September 2023. Click to get this free report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. For American Airlines, the Most Accurate Estimate is the same as the Zacks Consensus Estimate, suggesting that there are no recent analyst views which differ from what have been considered to derive the consensus estimate.
|
2188.0
|
2023-10-12 00:00:00 UTC
|
US STOCKS-Futures rise as Treasury yields retreat ahead of inflation data
|
AAL
|
https://www.nasdaq.com/articles/us-stocks-futures-rise-as-treasury-yields-retreat-ahead-of-inflation-data
|
nan
|
nan
|
For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window
CPI, weekly jobless claims due at 8:30 a.m. ET
Fed officials adopted more cautious stance in September
Israel says no exceptions to Gaza siege unless hostages freed
Delta Air Lines up on quarterly profit beat
Futures up: Dow 0.31%, S&P 0.37%, Nasdaq 0.35%
Updated at 7:09 a.m. ET/1109 GMT
By Shashwat Chauhan and Ankika Biswas
Oct 12 (Reuters) - Futures tracking Wall Street's main indexes rose on Thursday as Treasury yields continued to ease, while investors looked forward to crucial inflation data to gauge the Federal Reserve's interest-rate outlook.
The Labor Department report, due at 8:30 a.m. ET, is expected to show consumer prices rose 0.3% in September, according to economists polled by Reuters, from a gasoline-fueled 0.6% rise in August.
Core CPI, which excludes volatile food and energy prices, is seen rising at a similar pace to last month's 0.3%. Focus will also be on weekly jobless claims for clues on the state of the labor market.
The yield on the benchmark 10-year note US10YT=RR fell for the third straight day, helping megacap stocks Apple AAPL.O, Alphabet GOOGL.O, Nvidia NVDA.O, Meta Platforms META.O and Amazon.com AMZN.O advance between 0.2% and 0.7% in premarket trading.
Boston Fed President Susan Collins said on Wednesday while the odds of the economy escaping a recession have grown, it's possible the central bank is not done with interest rate hikes aimed at bringing inflation back to its target.
Remarks from other Fed policymakers, including Atlanta's Raphael Bostic, are also expected on Thursday.
Minutes of the Fed's Sept. 19-20 meeting showed a growing sense of uncertainty around the path of the U.S. economy, with volatile data and tightening financial markets posing risks to growth.
"The words 'proceed carefully' and 'risks to achieving the goals had become more two-sided' speak to the view of the centrists on the FOMC," Societe Generale strategists said, referring to the Fed minutes.
"Barring a surprise for CPI today ... one must assume another hawkish pause or skip on Nov. 1 is now a done deal."
Traders put the chance of interest rates remaining unchanged in November and December at around 91% and around 72%, respectively, according to CME's FedWatch tool.
Meanwhile, Israel said there would be no humanitarian exceptions to its siege of the Gaza Strip until all its hostages were freed.
Public broadcaster Kan said the Israeli death toll had risen to more than 1,300 since Saturday, while Gaza authorities said more than 1,200 people have been killed and more than 5,000 people have been wounded in retaliatory bombings.
At 7:09 a.m. ET, Dow e-minis 1YMcv1 were up 105 points, or 0.31%, S&P 500 e-minis EScv1 were up 16.5 points, or 0.37%, and Nasdaq 100 e-minis NQcv1 were up 54.25 points, or 0.35%.
All three major U.S. stock indexes closed higher for the fourth straight session on Wednesday.
Delta Air LinesDAL.N rose 3.3% after reporting a stronger-than-expected quarterly profit. Other airline stocks such as American Airlines Group AAL.O, Southwest Airlines LUV.N and United Airlines Holdings UAL.O rose more than 1%.
Walgreens Boots AllianceWBA.O lost 4% after the pharmacy chain operator forecast a lower-than-estimated profit for 2024.
FordF.N fell 2.5% after the United Auto Workers union shut down the company's biggest plant globally.
BirkenstockBIRK.N rose 1% after the German sandal maker's stock ended more than 12% below its IPO price on its market debut on Wednesday.
(Reporting by Shashwat Chauhan and Ankika Biswas in Bengaluru; Editing by Arun Koyyur and Shounak Dasgupta)
((Shashwat.Chauhan@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Other airline stocks such as American Airlines Group AAL.O, Southwest Airlines LUV.N and United Airlines Holdings UAL.O rose more than 1%. ET Fed officials adopted more cautious stance in September Israel says no exceptions to Gaza siege unless hostages freed Delta Air Lines up on quarterly profit beat Futures up: Dow 0.31%, S&P 0.37%, Nasdaq 0.35% Updated at 7:09 a.m. ET/1109 GMT By Shashwat Chauhan and Ankika Biswas Oct 12 (Reuters) - Futures tracking Wall Street's main indexes rose on Thursday as Treasury yields continued to ease, while investors looked forward to crucial inflation data to gauge the Federal Reserve's interest-rate outlook. The yield on the benchmark 10-year note US10YT=RR fell for the third straight day, helping megacap stocks Apple AAPL.O, Alphabet GOOGL.O, Nvidia NVDA.O, Meta Platforms META.O and Amazon.com AMZN.O advance between 0.2% and 0.7% in premarket trading.
|
Other airline stocks such as American Airlines Group AAL.O, Southwest Airlines LUV.N and United Airlines Holdings UAL.O rose more than 1%. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window CPI, weekly jobless claims due at 8:30 a.m. ET Fed officials adopted more cautious stance in September Israel says no exceptions to Gaza siege unless hostages freed Delta Air Lines up on quarterly profit beat Futures up: Dow 0.31%, S&P 0.37%, Nasdaq 0.35% Updated at 7:09 a.m. ET/1109 GMT By Shashwat Chauhan and Ankika Biswas Oct 12 (Reuters) - Futures tracking Wall Street's main indexes rose on Thursday as Treasury yields continued to ease, while investors looked forward to crucial inflation data to gauge the Federal Reserve's interest-rate outlook.
|
Other airline stocks such as American Airlines Group AAL.O, Southwest Airlines LUV.N and United Airlines Holdings UAL.O rose more than 1%. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window CPI, weekly jobless claims due at 8:30 a.m. ET Fed officials adopted more cautious stance in September Israel says no exceptions to Gaza siege unless hostages freed Delta Air Lines up on quarterly profit beat Futures up: Dow 0.31%, S&P 0.37%, Nasdaq 0.35% Updated at 7:09 a.m. ET/1109 GMT By Shashwat Chauhan and Ankika Biswas Oct 12 (Reuters) - Futures tracking Wall Street's main indexes rose on Thursday as Treasury yields continued to ease, while investors looked forward to crucial inflation data to gauge the Federal Reserve's interest-rate outlook.
|
Other airline stocks such as American Airlines Group AAL.O, Southwest Airlines LUV.N and United Airlines Holdings UAL.O rose more than 1%. ET Fed officials adopted more cautious stance in September Israel says no exceptions to Gaza siege unless hostages freed Delta Air Lines up on quarterly profit beat Futures up: Dow 0.31%, S&P 0.37%, Nasdaq 0.35% Updated at 7:09 a.m. ET/1109 GMT By Shashwat Chauhan and Ankika Biswas Oct 12 (Reuters) - Futures tracking Wall Street's main indexes rose on Thursday as Treasury yields continued to ease, while investors looked forward to crucial inflation data to gauge the Federal Reserve's interest-rate outlook. The Labor Department report, due at 8:30 a.m.
|
2189.0
|
2023-10-11 00:00:00 UTC
|
PREVIEW-Flagging domestic travel casts shadow over US airline earnings
|
AAL
|
https://www.nasdaq.com/articles/preview-flagging-domestic-travel-casts-shadow-over-us-airline-earnings
|
nan
|
nan
|
By Rajesh Kumar Singh
CHICAGO, Oct 11 (Reuters) - A travel boom has produced bumper earnings for major U.S. carriers this year but signs of softening demand on domestic routes have amplified worries that the bubble is about to burst, sparking a sell-off in airline stocks and prompting analysts to slash their earnings estimates.
As carriers report third-quarter results starting on Thursday, analysts and investors will be looking at how carriers plan to remain profitable once consumer demand softens.
Airline executives say travel remains the topmost priority for consumers. They have been attributing the slowdown in domestic travel demand to a jump in bookings for foreign trips.
But analysts and investors are wondering if it is early signs of waning demand. A drop in international fares in recent weeks after the summer travel rush has only reinforced those concerns.
"Demand is flashing warning signs," Jefferies analyst Sheila Kahyaoglu said.
The airline industry, which is facing higher fuel and wage bills, has been relying on robust demand to mitigate inflationary pressure with higher fares.
Airline fares, however, have been posting a double-digit decline from a year ago. Ticket prices for holiday travel are also down.
Data from online travel agency Hopper show average domestic round-trip airfare for the Thanksgiving holiday next month is down 14% from last year. Similarly, fares for the Christmas travel season are 12% lower from a year ago.
Ultra-low-cost carrier Spirit Airlines SAVE.N last month cut its profit outlook for the third quarter, citing "heightened promotional activity with steep discounting." Frontier Airlines ULCC.O said it was facing pressure to offer "very, very low" fares to fill up its planes.
Analysts have been calling on airlines to cut capacity to protect their pricing power. Carriers increased capacity in the U.S. domestic market by 10% from a year ago in the third quarter and are planning for a 9% increase in the current quarter.
"Until there is a meaningful downward revision in capacity, the challenging setup will continue," said Conor Cunningham, an analyst at Melius Research.
Meanwhile, jet fuel prices have risen at a faster clip, worsening cost pressures. United has said its fuel costs have climbed over 20% since mid-July.
That was one of the reasons carriers, including Delta Air Lines DAL.N and American Airlines AAL.O, trimmed their profit outlook for the September quarter.
Delta is due to report earnings on Thursday, while American will post its quarterly report on Oct. 19.
(Reporting by Rajesh Kumar Singh; Editing by Mark Porter)
((rajeshkumar.singh@thomsonreuters.com; +1-313-484-5370; Reuters Messaging: rajeshkumar.singh.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
That was one of the reasons carriers, including Delta Air Lines DAL.N and American Airlines AAL.O, trimmed their profit outlook for the September quarter. Data from online travel agency Hopper show average domestic round-trip airfare for the Thanksgiving holiday next month is down 14% from last year. Ultra-low-cost carrier Spirit Airlines SAVE.N last month cut its profit outlook for the third quarter, citing "heightened promotional activity with steep discounting."
|
That was one of the reasons carriers, including Delta Air Lines DAL.N and American Airlines AAL.O, trimmed their profit outlook for the September quarter. By Rajesh Kumar Singh CHICAGO, Oct 11 (Reuters) - A travel boom has produced bumper earnings for major U.S. carriers this year but signs of softening demand on domestic routes have amplified worries that the bubble is about to burst, sparking a sell-off in airline stocks and prompting analysts to slash their earnings estimates. As carriers report third-quarter results starting on Thursday, analysts and investors will be looking at how carriers plan to remain profitable once consumer demand softens.
|
That was one of the reasons carriers, including Delta Air Lines DAL.N and American Airlines AAL.O, trimmed their profit outlook for the September quarter. By Rajesh Kumar Singh CHICAGO, Oct 11 (Reuters) - A travel boom has produced bumper earnings for major U.S. carriers this year but signs of softening demand on domestic routes have amplified worries that the bubble is about to burst, sparking a sell-off in airline stocks and prompting analysts to slash their earnings estimates. As carriers report third-quarter results starting on Thursday, analysts and investors will be looking at how carriers plan to remain profitable once consumer demand softens.
|
That was one of the reasons carriers, including Delta Air Lines DAL.N and American Airlines AAL.O, trimmed their profit outlook for the September quarter. As carriers report third-quarter results starting on Thursday, analysts and investors will be looking at how carriers plan to remain profitable once consumer demand softens. Ticket prices for holiday travel are also down.
|
2190.0
|
2023-10-10 00:00:00 UTC
|
Delta (DAL) Cuts Tel Aviv Flights Post Israel-Palestine Clash
|
AAL
|
https://www.nasdaq.com/articles/delta-dal-cuts-tel-aviv-flights-post-israel-palestine-clash
|
nan
|
nan
|
Delta Air Lines DAL will not operate flights to Tel Aviv through the current month end. Management arrived at the decision following the fighting between Israel forces and Hamas. The decision to cancel flights extends Delta’s previous travel alert, which suspended flights to Tel Aviv through the current week.
Per the latest travel alert, issued in the wake of the conflict, Delta will issue travel waivers for rebooked flights traveling on or before Nov 30, 2023. In the event of passengers not being able to rebook for a flight on or before the above date, management will allow them to cancel their reservation and use the credit for a new ticket within one year of the original travel date.
Delta, currently carrying a Zacks Rank #5 (Strong Sell), is not the only airline to cut flights to Tel Aviv following the attack by Hamas militants on Israel over the weekend. Other U.S. carriers like United Airlines UAL and American Airlines AAL suspended direct flights to Tel Aviv. UAL’s management stated, "Tel Aviv flights will remain suspended until conditions allow them to resume." AAL has currently cancelled flights through Friday.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The U.S. State Department has issued a travel advisory for Gaza, urging people not to travel to the region. With international travel improving post pandemic, this disruption of operations following the conflict is not at all a welcome development for airlines. Naturally, shares of major carriers dipped on Oct 9.
Shares of Delta, American Airlines and United Airlines declined 4.6%, 4.1% and 4.9%, respectively, on Oct 9 from the closing of Oct 6.
Top 5 ChatGPT Stocks Revealed
Zacks Senior Stock Strategist, Kevin Cook names 5 hand-picked stocks with sky-high growth potential in a brilliant sector of Artificial Intelligence. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
Today you can invest in the wave of the future, an automation that answers follow-up questions … admits mistakes … challenges incorrect premises … rejects inappropriate requests. As one of the selected companies puts it, “Automation frees people from the mundane so they can accomplish the miraculous.”
Download Free ChatGPT Stock Report Right Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report
United Airlines Holdings Inc (UAL) : Free Stock Analysis Report
American Airlines Group Inc. (AAL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Other U.S. carriers like United Airlines UAL and American Airlines AAL suspended direct flights to Tel Aviv. AAL has currently cancelled flights through Friday. Click to get this free report Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report United Airlines Holdings Inc (UAL) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here.
|
Other U.S. carriers like United Airlines UAL and American Airlines AAL suspended direct flights to Tel Aviv. Click to get this free report Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report United Airlines Holdings Inc (UAL) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. AAL has currently cancelled flights through Friday.
|
Click to get this free report Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report United Airlines Holdings Inc (UAL) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. Other U.S. carriers like United Airlines UAL and American Airlines AAL suspended direct flights to Tel Aviv. AAL has currently cancelled flights through Friday.
|
Other U.S. carriers like United Airlines UAL and American Airlines AAL suspended direct flights to Tel Aviv. AAL has currently cancelled flights through Friday. Click to get this free report Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report United Airlines Holdings Inc (UAL) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here.
|
2191.0
|
2023-10-10 00:00:00 UTC
|
Stock Index Futures Climb on Dovish Fed Comments, PepsiCo Earnings on Tap
|
AAL
|
https://www.nasdaq.com/articles/stock-index-futures-climb-on-dovish-fed-comments-pepsico-earnings-on-tap
|
nan
|
nan
|
December S&P 500 futures (ESZ23) are up +0.20%, and December Nasdaq 100 E-Mini futures (NQZ23) are up +0.26% this morning as comments from Fed officials bolstered bets that the U.S. central bank may stand pat until year-end, while investors continued to evaluate the potential impact of the Israel-Hamas conflict.
In Monday’s trading session, the benchmark S&P 500 and tech-heavy Nasdaq 100 posted 2-week highs, and the blue-chip Dow rose to a 1-week high. Zscaler Inc (ZS) gained over +3% after Barclays upgraded the stock to Overweight from Equal Weight. Also, defense stocks climbed following the unexpected attack by Hamas on Israel over the weekend, with Northrop Grumman Corporation (NOC) surging more than +11% and Lockheed Martin Corporation (LMT) rising over +8%. In addition, energy stocks gained ground as the price of WTI crude rose more than +4%. On the bearish side, airline stocks retreated as most international carriers suspended direct flights to Tel Aviv, with Delta Air Lines Inc (DAL) and American Airlines Group (AAL) falling over -4%. Also, Datadog Inc (DDOG) slid more than -3% after BofA downgraded the stock to Neutral from Buy.
Federal Reserve Vice Chair Philip Jefferson stated on Monday that officials are in a position to “proceed carefully” following the recent uptick in Treasury yields. “Looking ahead, I will remain cognizant of the tightening in financial conditions through higher bond yields and will keep that in mind as I assess the future path of policy,” Jefferson said. Also, Dallas Fed President Lorie Logan stated that the recent increase in long-term U.S. Treasury yields, along with tighter financial conditions more generally, may result in reduced necessity for the Federal Reserve to implement additional interest rate hikes. “Higher term premiums result in higher term interest rates for the same setting of the fed funds rate, all else equal,” Logan said.
“The spike in bond yields coupled with the unfolding geopolitical tensions in the Middle East seem to have served as the catalyst for the much-anticipated dovish shift from the Federal Reserve - a move that equity markets have been eagerly awaiting,” said Tony Sycamore, a senior market analyst at IG Australia.
Meanwhile, U.S. rate futures have priced in a 10.4% chance of a 25 basis point rate increase at the next central bank meeting in November and a 26.9% probability of a 25 basis point rate hike at December’s monetary policy meeting.
On the earnings front, soda and snack giant PepsiCo Inc (PEP) is set to report its Q3 earnings results today.
In other news, the tensions in the Middle East could potentially intensify following a report by the Financial Times stating that a top U.S. general warned Iran to “not get involved” in the Israel-Hamas conflict.
Today, investors will likely focus on U.S. Wholesale Inventories data, which stood at -0.2% m/m in July. Economists foresee the August figure to be -0.1% m/m.
In addition, market participants will be looking toward a batch of speeches from Fed officials Bostic, Waller, Kashkari, and Daly.
In the bond markets, United States 10-year rates are at 4.658%, up +0.34%.
The Euro Stoxx 50 futures are up +1.57% this morning as a slight dovish shift in Federal Reserve officials’ tone boosted risk appetite. Mining stocks led the advance on Tuesday following a report by Bloomberg indicating that China is gearing up to introduce a new round of stimulus measures that may support metal prices. Meanwhile, ECB policymaker Francois Villeroy de Galhau said on Tuesday that inflation is expected to reach the European Central Bank’s target of around 2% by 2025, even in light of the impact of the Israel conflict on commodity prices. In corporate news, Elis (ELIS.FP) gained over +4% following the announcement that Brazil-based asset manager BWGI intends to acquire a 6% stake in the French cleaning services company.
Italy’s Industrial Production data was released today.
The Italian August Industrial Production stood at +0.2% m/m and -4.2% y/y, stronger than expectations of 0.0% m/m and -5.0% y/y.
Asian stock markets today settled mixed. China’s Shanghai Composite Index (SHCOMP) closed down -0.70%, and Japan’s Nikkei 225 Stock Index (NIK) closed up +2.43%.
China’s Shanghai Composite today closed lower as investors rushed to offload stocks with exposure to the Middle East. China Communications Construction tumbled over -8% as the state-owned company inked contracts worth $3 billion in the Middle East over the last three years. Also, China Railway Group slumped more than -7%. Meanwhile, Country Garden Holdings Co Ltd plunged over -10% after China’s largest private property developer warned that it might not be able to meet all of its offshore payment obligations when due or within the relevant grace periods. On the positive side, Hong Kong-listed tech giants advanced on Tuesday, boosted by dovish Federal Reserve remarks. In addition, China said that its Commerce Minister Wang Wentao engaged in “rational and pragmatic” talks with U.S. senators led by Senate Majority Leader Chuck Schumer on Monday.
“As the focus turning to Q3 earnings, selling may have been exhausted somewhat, and upside surprises in upcoming earnings may trigger a tradable rally,” said Redmond Wong, Greater China market strategist at Saxo Markets.
Japan’s Nikkei 225 Stock Index closed sharply higher today, driven by overnight gains on Wall Street, which bolstered investors’ risk appetite, leading them to scoop up beaten-down stocks. Energy stocks led the gains on Tuesday following an overnight spike in oil prices after military clashes between Israel and the Palestinian Islamist group Hamas raised concerns about potential disruptions in Middle East oil supply. Trading firms also climbed, with Sojitz Corp and Itochu Corp soaring over +7%. The Nikkei Volatility, which takes into account the implied volatility of Nikkei 225 options, closed up +3.03% to 21.09.
“Japanese shares were sold too heavily until last week. It was the time for a rebound, and overnight gains in Wall Street supported investor sentiment. Easing U.S. Treasury yields was also a positive factor,” said Shuutarou Yasuda, a market analyst at Tokai Tokyo Research Institute.
The Japanese August Current Account n.s.a. stood at 2.280T, weaker than expectations of 3.091T.
Pre-Market U.S. Stock Movers
Immunic Inc (IMUX) surged about +36% in pre-market trading after the biotech firm announced positive interim data from the Phase 2 CALLIPER trial.
Akero Therapeutics Inc (AKRO) climbed over +18% in pre-market trading after announcing the hosting of an investor conference on Tuesday to share topline week 36 results from its Phase 2b SYMMETRY study.
Juniper Networks Inc (JNPR) fell more than -2% in pre-market trading after JPMorgan downgraded the stock to Neutral from Overweight.
Rivian Automotive Inc (RIVN) rose over +3% in pre-market trading after UBS upgraded the stock to Buy from Neutral.
EXACT Sciences Corporation (EXAS) gained more than +2% in pre-market trading after Piper Sandler upgraded the stock to Overweight from Neutral.
Pagerduty Inc (PD) plunged over -6% in pre-market trading after the company announced it intends to offer a $350 million principal amount of convertible senior notes due 2028 in a private placement.
You can see more pre-market stock movers here
Today’s U.S. Earnings Spotlight: Tuesday - October 10th
PepsiCo (PEP), Neogen (NEOG), E2open Parent Holdings (ETWO), AZZ (AZZ).
More Stock Market News from Barchart
Stocks Recover Early Losses on Dovish Fed Remarks
Missed Out on Nvidia? Here's Another Top AI Stock to Buy Now
This Warren Buffett Stock Is a Deep Value Buy After Its Latest Slide
3 Reasons to Buy Advanced Micro Devices Stock Right Now
On the date of publication, Oleksandr Pylypenko did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
On the bearish side, airline stocks retreated as most international carriers suspended direct flights to Tel Aviv, with Delta Air Lines Inc (DAL) and American Airlines Group (AAL) falling over -4%. Also, Dallas Fed President Lorie Logan stated that the recent increase in long-term U.S. Treasury yields, along with tighter financial conditions more generally, may result in reduced necessity for the Federal Reserve to implement additional interest rate hikes. Meanwhile, ECB policymaker Francois Villeroy de Galhau said on Tuesday that inflation is expected to reach the European Central Bank’s target of around 2% by 2025, even in light of the impact of the Israel conflict on commodity prices.
|
On the bearish side, airline stocks retreated as most international carriers suspended direct flights to Tel Aviv, with Delta Air Lines Inc (DAL) and American Airlines Group (AAL) falling over -4%. “Higher term premiums result in higher term interest rates for the same setting of the fed funds rate, all else equal,” Logan said. On the positive side, Hong Kong-listed tech giants advanced on Tuesday, boosted by dovish Federal Reserve remarks.
|
On the bearish side, airline stocks retreated as most international carriers suspended direct flights to Tel Aviv, with Delta Air Lines Inc (DAL) and American Airlines Group (AAL) falling over -4%. Japan’s Nikkei 225 Stock Index closed sharply higher today, driven by overnight gains on Wall Street, which bolstered investors’ risk appetite, leading them to scoop up beaten-down stocks. More Stock Market News from Barchart Stocks Recover Early Losses on Dovish Fed Remarks Missed Out on Nvidia?
|
On the bearish side, airline stocks retreated as most international carriers suspended direct flights to Tel Aviv, with Delta Air Lines Inc (DAL) and American Airlines Group (AAL) falling over -4%. In the bond markets, United States 10-year rates are at 4.658%, up +0.34%. Pre-Market U.S. Stock Movers Immunic Inc (IMUX) surged about +36% in pre-market trading after the biotech firm announced positive interim data from the Phase 2 CALLIPER trial.
|
2192.0
|
2023-10-10 00:00:00 UTC
|
Stock Index Futures Climb as Dovish Fed Comments Boost Sentiment, PepsiCo Earnings on Tap
|
AAL
|
https://www.nasdaq.com/articles/stock-index-futures-climb-as-dovish-fed-comments-boost-sentiment-pepsico-earnings-on-tap
|
nan
|
nan
|
December S&P 500 futures (ESZ23) are up +0.20%, and December Nasdaq 100 E-Mini futures (NQZ23) are up +0.26% this morning as comments from Fed officials bolstered bets that the U.S. central bank may stand pat until year-end, while investors continued to evaluate the potential impact of the Israel-Hamas conflict.
In Monday’s trading session, the benchmark S&P 500 and tech-heavy Nasdaq 100 posted 2-week highs, and the blue-chip Dow rose to a 1-week high. Zscaler Inc (ZS) gained over +3% after Barclays upgraded the stock to Overweight from Equal Weight. Also, defense stocks climbed following the unexpected attack by Hamas on Israel over the weekend, with Northrop Grumman Corporation (NOC) surging more than +11% and Lockheed Martin Corporation (LMT) rising over +8%. In addition, energy stocks gained ground as the price of WTI crude rose more than +4%. On the bearish side, airline stocks retreated as most international carriers suspended direct flights to Tel Aviv, with Delta Air Lines Inc (DAL) and American Airlines Group (AAL) falling over -4%. Also, Datadog Inc (DDOG) slid more than -3% after BofA downgraded the stock to Neutral from Buy.
Federal Reserve Vice Chair Philip Jefferson stated on Monday that officials are in a position to “proceed carefully” following the recent uptick in Treasury yields. “Looking ahead, I will remain cognizant of the tightening in financial conditions through higher bond yields and will keep that in mind as I assess the future path of policy,” Jefferson said. Also, Dallas Fed President Lorie Logan stated that the recent increase in long-term U.S. Treasury yields, along with tighter financial conditions more generally, may result in reduced necessity for the Federal Reserve to implement additional interest rate hikes. “Higher term premiums result in higher term interest rates for the same setting of the fed funds rate, all else equal,” Logan said.
“The spike in bond yields coupled with the unfolding geopolitical tensions in the Middle East seem to have served as the catalyst for the much-anticipated dovish shift from the Federal Reserve - a move that equity markets have been eagerly awaiting,” said Tony Sycamore, a senior market analyst at IG Australia.
Meanwhile, U.S. rate futures have priced in a 10.4% chance of a 25 basis point rate increase at the next central bank meeting in November and a 26.9% probability of a 25 basis point rate hike at December’s monetary policy meeting.
On the earnings front, soda and snack giant PepsiCo Inc (PEP) is set to report its Q3 earnings results today.
In other news, the tensions in the Middle East could potentially intensify following a report by the Financial Times stating that a top U.S. general warned Iran to “not get involved” in the Israel-Hamas conflict.
Today, investors will likely focus on U.S. Wholesale Inventories data, which stood at -0.2% m/m in July. Economists foresee the August figure to be -0.1% m/m.
In addition, market participants will be looking toward a batch of speeches from Fed officials Bostic, Waller, Kashkari, and Daly.
In the bond markets, United States 10-year rates are at 4.658%, up +0.34%.
The Euro Stoxx 50 futures are up +1.57% this morning as a slight dovish shift in Federal Reserve officials’ tone boosted risk appetite. Mining stocks led the advance on Tuesday following a report by Bloomberg indicating that China is gearing up to introduce a new round of stimulus measures that may support metal prices. Meanwhile, ECB policymaker Francois Villeroy de Galhau said on Tuesday that inflation is expected to reach the European Central Bank’s target of around 2% by 2025, even in light of the impact of the Israel conflict on commodity prices. In corporate news, Elis (ELIS.FP) gained over +4% following the announcement that Brazil-based asset manager BWGI intends to acquire a 6% stake in the French cleaning services company.
Italy’s Industrial Production data was released today.
The Italian August Industrial Production stood at +0.2% m/m and -4.2% y/y, stronger than expectations of 0.0% m/m and -5.0% y/y.
Asian stock markets today settled mixed. China’s Shanghai Composite Index (SHCOMP) closed down -0.70%, and Japan’s Nikkei 225 Stock Index (NIK) closed up +2.43%.
China’s Shanghai Composite today closed lower as investors rushed to offload stocks with exposure to the Middle East. China Communications Construction tumbled over -8% as the state-owned company inked contracts worth $3 billion in the Middle East over the last three years. Also, China Railway Group slumped more than -7%. Meanwhile, Country Garden Holdings Co Ltd plunged over -10% after China’s largest private property developer warned that it might not be able to meet all of its offshore payment obligations when due or within the relevant grace periods. On the positive side, Hong Kong-listed tech giants advanced on Tuesday, boosted by dovish Federal Reserve remarks. In addition, China said that its Commerce Minister Wang Wentao engaged in “rational and pragmatic” talks with U.S. senators led by Senate Majority Leader Chuck Schumer on Monday.
“As the focus turning to Q3 earnings, selling may have been exhausted somewhat, and upside surprises in upcoming earnings may trigger a tradable rally,” said Redmond Wong, Greater China market strategist at Saxo Markets.
Japan’s Nikkei 225 Stock Index closed sharply higher today, driven by overnight gains on Wall Street, which bolstered investors’ risk appetite, leading them to scoop up beaten-down stocks. Energy stocks led the gains on Tuesday following an overnight spike in oil prices after military clashes between Israel and the Palestinian Islamist group Hamas raised concerns about potential disruptions in Middle East oil supply. Trading firms also climbed, with Sojitz Corp and Itochu Corp soaring over +7%. The Nikkei Volatility, which takes into account the implied volatility of Nikkei 225 options, closed up +3.03% to 21.09.
“Japanese shares were sold too heavily until last week. It was the time for a rebound, and overnight gains in Wall Street supported investor sentiment. Easing U.S. Treasury yields was also a positive factor,” said Shuutarou Yasuda, a market analyst at Tokai Tokyo Research Institute.
The Japanese August Current Account n.s.a. stood at 2.280T, weaker than expectations of 3.091T.
Pre-Market U.S. Stock Movers
Immunic Inc (IMUX) surged about +36% in pre-market trading after the biotech firm announced positive interim data from the Phase 2 CALLIPER trial.
Akero Therapeutics Inc (AKRO) climbed over +18% in pre-market trading after announcing the hosting of an investor conference on Tuesday to share topline week 36 results from its Phase 2b SYMMETRY study.
Juniper Networks Inc (JNPR) fell more than -2% in pre-market trading after JPMorgan downgraded the stock to Neutral from Overweight.
Rivian Automotive Inc (RIVN) rose over +3% in pre-market trading after UBS upgraded the stock to Buy from Neutral.
EXACT Sciences Corporation (EXAS) gained more than +2% in pre-market trading after Piper Sandler upgraded the stock to Overweight from Neutral.
Pagerduty Inc (PD) plunged over -6% in pre-market trading after the company announced it intends to offer a $350M principal amount of convertible senior notes due 2028 in a private placement.
You can see more pre-market stock movers here
Today’s U.S. Earnings Spotlight: Tuesday - October 10th
PepsiCo (PEP), Neogen (NEOG), E2open Parent Holdings (ETWO), AZZ (AZZ).
More Stock Market News from Barchart
Stocks Recover Early Losses on Dovish Fed Remarks
Missed Out on Nvidia? Here's Another Top AI Stock to Buy Now
This Warren Buffett Stock Is a Deep Value Buy After Its Latest Slide
3 Reasons to Buy Advanced Micro Devices Stock Right Now
On the date of publication, Oleksandr Pylypenko did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
On the bearish side, airline stocks retreated as most international carriers suspended direct flights to Tel Aviv, with Delta Air Lines Inc (DAL) and American Airlines Group (AAL) falling over -4%. Also, Dallas Fed President Lorie Logan stated that the recent increase in long-term U.S. Treasury yields, along with tighter financial conditions more generally, may result in reduced necessity for the Federal Reserve to implement additional interest rate hikes. Meanwhile, ECB policymaker Francois Villeroy de Galhau said on Tuesday that inflation is expected to reach the European Central Bank’s target of around 2% by 2025, even in light of the impact of the Israel conflict on commodity prices.
|
On the bearish side, airline stocks retreated as most international carriers suspended direct flights to Tel Aviv, with Delta Air Lines Inc (DAL) and American Airlines Group (AAL) falling over -4%. “Higher term premiums result in higher term interest rates for the same setting of the fed funds rate, all else equal,” Logan said. On the positive side, Hong Kong-listed tech giants advanced on Tuesday, boosted by dovish Federal Reserve remarks.
|
On the bearish side, airline stocks retreated as most international carriers suspended direct flights to Tel Aviv, with Delta Air Lines Inc (DAL) and American Airlines Group (AAL) falling over -4%. Japan’s Nikkei 225 Stock Index closed sharply higher today, driven by overnight gains on Wall Street, which bolstered investors’ risk appetite, leading them to scoop up beaten-down stocks. More Stock Market News from Barchart Stocks Recover Early Losses on Dovish Fed Remarks Missed Out on Nvidia?
|
On the bearish side, airline stocks retreated as most international carriers suspended direct flights to Tel Aviv, with Delta Air Lines Inc (DAL) and American Airlines Group (AAL) falling over -4%. In the bond markets, United States 10-year rates are at 4.658%, up +0.34%. Pre-Market U.S. Stock Movers Immunic Inc (IMUX) surged about +36% in pre-market trading after the biotech firm announced positive interim data from the Phase 2 CALLIPER trial.
|
2193.0
|
2023-10-09 00:00:00 UTC
|
American Airlines Group is Now Oversold (AAL)
|
AAL
|
https://www.nasdaq.com/articles/american-airlines-group-is-now-oversold-aal
|
nan
|
nan
|
Legendary investor Warren Buffett advises to be fearful when others are greedy, and be greedy when others are fearful. One way we can try to measure the level of fear in a given stock is through a technical analysis indicator called the Relative Strength Index, or RSI, which measures momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30.
In trading on Monday, shares of American Airlines Group Inc (Symbol: AAL) entered into oversold territory, hitting an RSI reading of 27.8, after changing hands as low as $11.94 per share. By comparison, the current RSI reading of the S&P 500 ETF (SPY) is 42.1. A bullish investor could look at AAL's 27.8 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of AAL shares:
Looking at the chart above, AAL's low point in its 52 week range is $11.79 per share, with $19.08 as the 52 week high point — that compares with a last trade of $12.10.
Find out what 9 other oversold stocks you need to know about »
Also see:
AXP Stock Predictions
BSCN Historical Stock Prices
ORM Insider Buying
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
In trading on Monday, shares of American Airlines Group Inc (Symbol: AAL) entered into oversold territory, hitting an RSI reading of 27.8, after changing hands as low as $11.94 per share. A bullish investor could look at AAL's 27.8 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of AAL shares: Looking at the chart above, AAL's low point in its 52 week range is $11.79 per share, with $19.08 as the 52 week high point — that compares with a last trade of $12.10.
|
A bullish investor could look at AAL's 27.8 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of AAL shares: Looking at the chart above, AAL's low point in its 52 week range is $11.79 per share, with $19.08 as the 52 week high point — that compares with a last trade of $12.10. In trading on Monday, shares of American Airlines Group Inc (Symbol: AAL) entered into oversold territory, hitting an RSI reading of 27.8, after changing hands as low as $11.94 per share.
|
In trading on Monday, shares of American Airlines Group Inc (Symbol: AAL) entered into oversold territory, hitting an RSI reading of 27.8, after changing hands as low as $11.94 per share. The chart below shows the one year performance of AAL shares: Looking at the chart above, AAL's low point in its 52 week range is $11.79 per share, with $19.08 as the 52 week high point — that compares with a last trade of $12.10. A bullish investor could look at AAL's 27.8 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side.
|
In trading on Monday, shares of American Airlines Group Inc (Symbol: AAL) entered into oversold territory, hitting an RSI reading of 27.8, after changing hands as low as $11.94 per share. A bullish investor could look at AAL's 27.8 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of AAL shares: Looking at the chart above, AAL's low point in its 52 week range is $11.79 per share, with $19.08 as the 52 week high point — that compares with a last trade of $12.10.
|
2194.0
|
2023-10-09 00:00:00 UTC
|
GLOBAL-MARKETS-Oil, gold jump on Middle East conflict; US stocks end higher
|
AAL
|
https://www.nasdaq.com/articles/global-markets-oil-gold-jump-on-middle-east-conflict-us-stocks-end-higher
|
nan
|
nan
|
By Caroline Valetkevitch
NEW YORK, Oct 9 (Reuters) - Oil prices jumped more than 4%, gold gained and the safe-haven U.S. dollar edged up against the euro on Monday as military clashes between Israel and the Palestinian Islamist group Hamas fueled worries that the conflict could spread beyond Gaza.
U.S. stocks ended higher, with energy shares rising along with oil prices. The S&P 500 energy index .SPNY ended up 3.5%.
Israel's shekel weakened sharply. The dollar was up about 3% at 3.955 shekels ILS=D3.
The Bank of Israel earlier said it would sell up to $30 billion of foreign currency to maintain stability. Israeli government bonds also fell.
The Israeli military said on Monday it had called up an unprecedented 300,000 reservists and was imposing a total blockade of the Gaza Strip, in a sign it may be planning a ground assault in response to the devastating weekend attack by the Hamas gunmen.
"Typically the most sensitive asset classes to geopolitical risk are emerging markets, commodities and currencies – and, true to form, we've seen hits in all of those areas," said Tina Fordham, geopolitical strategist and founder of Fordham Global Foresight.
"Wars are inflationary and wars in the Middle East especially are inflationary," she said.
Brent crudeLCOc1 rose $3.57, or 4.2%, to settle at $88.15 a barrel, while U.S. West Texas Intermediate crude CLc1 settled at $86.38 a barrel, up $3.59, or 4.3%.
Emerging market stocks .MSCIEF lost 0.20%, while safe-haven gold was in demand, rising 1.6% to $1,860 an ounce XAU=.
On Wall Street, shares of U.S. airlines, hurt by rising oil prices, ended sharply lower. United Airlines UAL.O, Delta Air Lines DAL.N and American Airlines AAL.O suspended direct flights to Tel Aviv.
Still, the Dow Jones Industrial Average .DJI rose 197.07 points, or 0.59%, to 33,604.65, the S&P 500 .SPX gained 27.16 points, or 0.63%, to 4,335.66 and the Nasdaq Composite .IXIC added 52.90 points, or 0.39%, to 13,484.24.
The pan-European STOXX 600 index .STOXX lost 0.26% and MSCI's gauge of stocks across the globe .MIWD00000PUS gained 0.40%.
"We don't see a 'sell now, ask questions later' market," said Quincy Krosby, chief global strategist at LPL Financial in Charlotte, North Carolina.
"The market at this point has focused on the diplomatic efforts to keep Israel focused on Hamas and reduce the prospect of escalation. There's an all-out global diplomatic effort to keep this conflict from expanding into the oil-rich region," she said.
Against the dollar, the euro EUR= fell 0.19% to $1.0566, while the dollar index =USD, a measure of the U.S. currency against six others, retreated 0.16% after earlier trading higher.
The cash Treasury market was closed on Monday for Columbus Day. 10-year Treasury futures TYc1 rose.
The conflict in the Middle East comes at a time when markets are jittery and bond yields around the world are at multi-year highs.
Investors are anxiously awaiting U.S. consumer price data, due later this week.
The unofficial kickoff of the third-quarter U.S. corporate earnings season is also this week, with J.P.Morgan JPM.N and other banks due to report results.
Asia stock markets https://tmsnrt.rs/2zpUAr4
(Reporting by Caroline Valetkevitch in New York; additional reporting by Karin Strohecker, Alun John in London and Wayne Cole in Sydney Editing by Christina Fincher and Matthew Lewis)
((caroline.valetkevitch@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
United Airlines UAL.O, Delta Air Lines DAL.N and American Airlines AAL.O suspended direct flights to Tel Aviv. By Caroline Valetkevitch NEW YORK, Oct 9 (Reuters) - Oil prices jumped more than 4%, gold gained and the safe-haven U.S. dollar edged up against the euro on Monday as military clashes between Israel and the Palestinian Islamist group Hamas fueled worries that the conflict could spread beyond Gaza. The Israeli military said on Monday it had called up an unprecedented 300,000 reservists and was imposing a total blockade of the Gaza Strip, in a sign it may be planning a ground assault in response to the devastating weekend attack by the Hamas gunmen.
|
United Airlines UAL.O, Delta Air Lines DAL.N and American Airlines AAL.O suspended direct flights to Tel Aviv. By Caroline Valetkevitch NEW YORK, Oct 9 (Reuters) - Oil prices jumped more than 4%, gold gained and the safe-haven U.S. dollar edged up against the euro on Monday as military clashes between Israel and the Palestinian Islamist group Hamas fueled worries that the conflict could spread beyond Gaza. U.S. stocks ended higher, with energy shares rising along with oil prices.
|
United Airlines UAL.O, Delta Air Lines DAL.N and American Airlines AAL.O suspended direct flights to Tel Aviv. By Caroline Valetkevitch NEW YORK, Oct 9 (Reuters) - Oil prices jumped more than 4%, gold gained and the safe-haven U.S. dollar edged up against the euro on Monday as military clashes between Israel and the Palestinian Islamist group Hamas fueled worries that the conflict could spread beyond Gaza. "Typically the most sensitive asset classes to geopolitical risk are emerging markets, commodities and currencies – and, true to form, we've seen hits in all of those areas," said Tina Fordham, geopolitical strategist and founder of Fordham Global Foresight.
|
United Airlines UAL.O, Delta Air Lines DAL.N and American Airlines AAL.O suspended direct flights to Tel Aviv. By Caroline Valetkevitch NEW YORK, Oct 9 (Reuters) - Oil prices jumped more than 4%, gold gained and the safe-haven U.S. dollar edged up against the euro on Monday as military clashes between Israel and the Palestinian Islamist group Hamas fueled worries that the conflict could spread beyond Gaza. On Wall Street, shares of U.S. airlines, hurt by rising oil prices, ended sharply lower.
|
2195.0
|
2023-10-09 00:00:00 UTC
|
US STOCKS-Wall Street advances as investors monitor Mideast conflict headlines
|
AAL
|
https://www.nasdaq.com/articles/us-stocks-wall-street-advances-as-investors-monitor-mideast-conflict-headlines-0
|
nan
|
nan
|
By Sinéad Carew and Shashwat Chauhan
Oct 9 (Reuters) - Wall Street's major indexes closed higher on Monday while energy stocks rallied as investors digested the latest news about the conflict between Israel and the Palestinian Islamist group Hamas.
The Israeli military said it called up reservists and was imposing a total blockade of the Gaza Strip in signs it could be planning a ground assault there to defeat Hamas which launched a deadly attack over the weekend.
But late in the afternoon, a senior Hamas official said the group is open to discussions over a possible truce with Israel. U.S. President Joe Biden said he directed his team to coordinate with regional partners to warn anyone seeking to take advantage of the situation.
News of the conflict sparked an oil rally due to supply concerns. But stock indexes managed to reverse earlier declines with help of more dovish Federal Reserve official comments.
As a result investors appeared to refocus on more U.S. centric matters, John Augustine, said chief investment officer at Huntington National Bank in Columbus, Ohio.
"The stock market and investors are focused on two things, the economy and earnings. The U.S. economy is not slowing and earnings are expected to come out of a recession with reports starting this week," Augustine said.
"Those fundamentals are more powerful in the market than terrible geopolitical headlines from the weekend just as they were more powerful than a strong jobs report and worries about the Fed on Friday."
The U.S. bond market was shut on Monday for Columbus Day, also known as Indigenous Peoples' Day.
A recent surge in U.S. Treasury yields had pressured equities. That pressure eased as gains in the iShares Core 10+ years U.S. bond Exchange Traded Fund (ETF) ILTB.K and the iShares 20+ years Treasury bond ETF TLT.O suggested that yields could fall on Tuesday.
Meanwhile, Fed officials indicated that recent gains in yields on long-term U.S. Treasury bonds, which directly influence financing costs for households and businesses, could steer the Fed from further hikes in its short-term policy rate. This eased some concerns among equity investors.
The Dow Jones Industrial Average .DJI rose 197.07 points, or 0.59%, to 33,604.65. The S&P 500 .SPX gained 27.16 points, or 0.63%, at 4,335.66 and the Nasdaq Composite .IXIC added 52.90 points, or 0.39%, at 13,484.24.
After rising as high as 19.6 during the session, the CBOE volatility index .VIX, often referred to as Wall Street's "fear gauge," ended at 17.70.
But traditional safe-haven assets remained in demand, with goldXAU= climbing 1.6%, although the U.S. dollar index =USD gave up earlier gains and was down 0.18%.
Rising oil prices boosted the S&P energy .SPNY sector, which ended up 3.5%, making it the biggest gainer among the S&P 500's 11 major industry sectors.
United Airlines UAL.O, Delta Air Lines DAL.N and American Airlines AAL.Osuspended direct flights to Tel Aviv. Shares of the airlines, also hurt by rising oil prices, ended down more than 4% each. This put pressure on the S&P 500 Passenger Airlines index .SPLRCALI, which lost 3.7%.
Defense companies had rallied after the news from Israel, with the S&P 500 Aerospace & Defense index .SPLRCAERO ending up 5.6% for its biggest one-day percentage gain since November 2020. Its biggest advancers were Northrop Grumman NOC.N, which rose 11.4%, and L3Harris Technologies LHX.N, which added 9.96%.
Exchange-traded funds exposed to Israel were selling off, with iShares MSCI Israel ETF EIS.N falling 7% while the ARK Israel Innovative Technology ETF IZRL.N fell 5%.
Advancing issues outnumbered declining ones on the NYSE by a 2.19-to-1 ratio; on Nasdaq, a 1.03-to-1 ratio favored decliners.
The S&P 500 posted eight new 52-week highs and 19 new lows; the Nasdaq Composite recorded 37 new highs and 326 new lows.
On U.S. exchanges 8.71 billion shares changed hands compared with the 10.68 billion average for the last 20 sessions.
(Reporting by Sinéad Carew, Stephen Culp, Caroline Valetkevitch and Chuck Mikolajczak in New York, Shashwat Chauhan and Ankika Biswas in Bengaluru; Editing by Arun Koyyur, Shounak Dasgupta and Richard Chang)
((sinead.carew@thomsonreuters.com; +13322191897))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
United Airlines UAL.O, Delta Air Lines DAL.N and American Airlines AAL.Osuspended direct flights to Tel Aviv. By Sinéad Carew and Shashwat Chauhan Oct 9 (Reuters) - Wall Street's major indexes closed higher on Monday while energy stocks rallied as investors digested the latest news about the conflict between Israel and the Palestinian Islamist group Hamas. The Israeli military said it called up reservists and was imposing a total blockade of the Gaza Strip in signs it could be planning a ground assault there to defeat Hamas which launched a deadly attack over the weekend.
|
United Airlines UAL.O, Delta Air Lines DAL.N and American Airlines AAL.Osuspended direct flights to Tel Aviv. By Sinéad Carew and Shashwat Chauhan Oct 9 (Reuters) - Wall Street's major indexes closed higher on Monday while energy stocks rallied as investors digested the latest news about the conflict between Israel and the Palestinian Islamist group Hamas. That pressure eased as gains in the iShares Core 10+ years U.S. bond Exchange Traded Fund (ETF) ILTB.K and the iShares 20+ years Treasury bond ETF TLT.O suggested that yields could fall on Tuesday.
|
United Airlines UAL.O, Delta Air Lines DAL.N and American Airlines AAL.Osuspended direct flights to Tel Aviv. By Sinéad Carew and Shashwat Chauhan Oct 9 (Reuters) - Wall Street's major indexes closed higher on Monday while energy stocks rallied as investors digested the latest news about the conflict between Israel and the Palestinian Islamist group Hamas. That pressure eased as gains in the iShares Core 10+ years U.S. bond Exchange Traded Fund (ETF) ILTB.K and the iShares 20+ years Treasury bond ETF TLT.O suggested that yields could fall on Tuesday.
|
United Airlines UAL.O, Delta Air Lines DAL.N and American Airlines AAL.Osuspended direct flights to Tel Aviv. By Sinéad Carew and Shashwat Chauhan Oct 9 (Reuters) - Wall Street's major indexes closed higher on Monday while energy stocks rallied as investors digested the latest news about the conflict between Israel and the Palestinian Islamist group Hamas. But stock indexes managed to reverse earlier declines with help of more dovish Federal Reserve official comments.
|
2196.0
|
2023-10-09 00:00:00 UTC
|
Stocks Mixed on Middle East Turmoil
|
AAL
|
https://www.nasdaq.com/articles/stocks-mixed-on-middle-east-turmoil
|
nan
|
nan
|
What you need to know…
The S&P 500 Index ($SPX) (SPY) today is up +0.22%, the Dow Jones Industrials Index ($DOWI) (DIA) is up +0.22%, and the Nasdaq 100 Index ($IUXX) (QQQ) is down -0.01%.
Stocks are mixed after the militant group Hamas attacked Israel over the weekend, leaving more than 1,100 dead. European government bond yields are lower as investors flock to the safety of government debt, although trading in the U.S. Treasury market is closed today for the Columbus Day holiday.
The attack by Hamas on Israel sent crude oil prices soaring by more than +4% on concern the conflict could widen and threaten crude supplies from the Middle East. The U.S. sent a group of warships to the eastern Mediterranean. The Wall Street Journal reported that Iranian security officials helped Hamas plan Saturday’s surprise attack, which raises the risks there may be retaliation measures against Iran.
On the positive side for stocks, today’s surge in crude prices has sparked a rally in energy stocks. Also, the surprise attack by Hamas on Israel over the weekend has fueled gains in defense stocks.
Dovish comments today from Dallas Fed President Logan, a known hawk, are supporting stocks. Logan believes the recent jump in long-term Treasury yields may mean less need for the Fed to raise interest rates again, saying, "Higher term premiums result in higher interest rates for the same setting of the fed funds rate, all else equal. Thus, if premiums rise, they could do some of the work of cooling the economy for us, leaving less need for additional monetary policy tightening."
The markets are discounting a 14% chance that the FOMC will raise the funds rate by +25 bp at the next FOMC meeting that ends on November 1, and a 27% chance for that +25 bp rate hike at the following meeting that ends on December 13. The markets are then expecting the FOMC to begin cutting rates in the second half of 2024 in response to an expected slowdown in the U.S. economy.
European bond yields are moving lower. The 10-year T-note is not trading today, with the U.S. Treasury market closed for the Columbus Day holiday. The 10-year German bund yield fell to a 1-1/2 week low of 2.774% and is down -10.3 bp at 2.781%. The 10-year UK gilt yield fell to a 1-week low of 4.483% and is down -7.5 bp at 4.499%.
Overseas stock markets are lower. The Euro Stoxx 50 is down -0.98%. China’s Shanghai Composite Index closed down -0.44%. Japan’s Nikkei 225 today was closed for a holiday.
Today’s stock movers…
Cruise line operators are retreating today as travel stocks take a hit on the conflict in the Middle East. Carnival (CCL) is down more than -6% to lead losers in the S&P 500. Also, Norwegian Cruise Line Holdings (NCLH) and Royal Caribbean Cruises Ltd (RCL) are down more than -4%.
Airline stocks are under pressure today as most international carriers suspended flights to Israel following the surprise attack by Hamas over the weekend. United Airlines Holdings (UAL), American Airlines Group (AAL), and Delta Air Lines (DAL) are down by more than -5%. Also, Alaska Air Group (ALK) is down more than -3%, and Southwest Airlines (LUV) is down more than -3%.
Paramount Global (PARA) is down more than -3% after Needham & Co cut its price target on the stock to $15 from $28.
Walmart (WMT) is down more than -1% to lead losers in the Dow Joines Industrials after a three-year probe by Mexican investigators concluded the company had abused its market power.
Moderna (MRNA) is down more than -5% to lead losers in the Nasdaq 100 after Bloomberg Intelligence said the company would need a “significant acceleration in inoculations” in Q4 of its Covid vaccines to achieve its guidance range of $6 billion to $8 billion.
Datadog (DDOG) is down more than -4% after Bank of America downgraded the stock to neutral from buy.
Illumina (ILMN) is down more than -3% after Bloomberg reported that the European Union vetoed the company’s $7 billion takeover of Grail Inc amid concerns the deal would have hampered competition.
Fidelity National Information (FIS) is down more than -3% after Truist Securities cut its price target on the stock to $50 from $60.
Defense stocks are rallying today after the surprise attack by Hamas on Israel over the weekend. Northrop Grumman (NOC) is up more than +8% to lead gainers in the S&P 500. Also, Lockheed Martin (LMT), L3Harris Technologies (LHX), General Dynamics (GD), and Huntington Ingalls Industries (HII) are up more than +6%. In addition, RTX Corp (RTX) is up more than +3%.
Energy stocks and energy service companies are climbing today, with the price of WTI crude up more than +3%. As a result, Marathon Oil (MRO) and Hess Corp (HES) are up more than +5%. Also, ConocoPhillips (COP), Devon Energy (DVN), Exxon Mobil (XOM), Occidental Petroleum (OXY), and Schlumberger (SLB) are up more than +4%. In addition, Chevron (CVX) is up more than +3% to lead gainers in the Dow Jones Industrials.
Zscaler (ZS) is up more than +6% to lead gainers in the Nasdaq 100 after Barclays upgraded the stock to overweight from equal weight.
Motorola Solutions (MSI) is up more than +3% after Bank of America started coverage of the stock with a buy recommendation and a price target of $330.
Kinder Morgan (KMI) is up more than +2% after Goldman Sachs reinstated coverage of the stock with a buy recommendation and a price target of $20.
Across the markets…
December 10-year T-notes (ZNZ23) this morning are up +26 ticks at a 1-week high, although the U.S. cash Treasury market is closed today for the Columbus Day holiday. T-notes have support from safe-haven demand due to geopolitical risks after the surprise attack by Hamas militants on Israel over the weekend. Dovish comments from Dallas Fed President Logan also gave T-notes a boost when she said the recent jump in long-term Treasury yields may mean less need for the Fed to raise interest rates again.
The dollar index (DXY00) today is up by +0.21%. The dollar is moving higher today on increased safe-haven demand after Israel declared war on Hamas. The stock slide today has also boosted the liquidity demand for the dollar. The dollar fell back from its best levels on comments from Dallas Fed President Logan, who said higher Treasury yields may mean less of a need for the Fed to raise interest rates.
EUR/USD (^EURUSD) today is down by -0.32%. A stronger dollar today is weighing on the euro. Losses in EUR/USD are limited by hawkish comments from ECB Vice President Guindos, who said interest rates are likely to stay at their current levels for some time.
Today’s Eurozone economic news was mixed for the euro. On the negative side, German Aug industrial production fell -0.2% m/m, slightly weaker than expectations of -0.1% m/m. Conversely, Eurozone Oct Sentix investor confidence fell -0.4 to -21.9, a smaller decline than expectations of -24.0.
ECB Vice President Guindos said the ECB must stay vigilant on inflation, and interest rates are likely to stay at their current levels for some time "due to the evolution of oil prices, the depreciation of the euro, and the evolution of unit labor costs.
USD/JPY (^USDJPY) today is down by -0.35%. Ramped-up geopolitical risks have sparked safe-haven buying of the yen after the surprise attack by Hamas militants on Israel over the weekend. Also, a rally in T-note prices today is supportive of the yen. Trading activity in the yen is muted, with Japanese markets closed today for the Health Sports Day holiday.
December gold (GCZ3) today is up +13.9 (+0.75%), and Dec silver (SIZ23) is up +0.042 (+0.19%). Precious metals prices this morning are moderately higher, with gold and silver posting 1-week highs. Precious metals are climbing on increased safe-haven demand today as global stocks retreated on geopolitical risks after Hamas militants attacked Israel over the weekend. Also, dovish comments today from Dallas Fed President Logan gave precious metals a boost when she said the recent jump in long-term Treasury yields may mean less need for the Fed to raise interest rates again. A stronger dollar today is limiting the upside in precious metals. Also, long liquidation pressures are weighing on gold after long gold holdings in ETFs fell to a 3-1/2 year low last Friday.
More Stock Market News from Barchart
Here's My No. 1 "Magnificent Seven" AI Stock Pick
Markets Today: Stocks Retreat on Conflict in the Middle East
Option Volatility And Earnings Report For October 9 - 13
Stocks Set to Open Lower as Investors Await U.S. Inflation Data and FOMC Minutes, Oil Soars on Middle East Conflict
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
United Airlines Holdings (UAL), American Airlines Group (AAL), and Delta Air Lines (DAL) are down by more than -5%. The Wall Street Journal reported that Iranian security officials helped Hamas plan Saturday’s surprise attack, which raises the risks there may be retaliation measures against Iran. Illumina (ILMN) is down more than -3% after Bloomberg reported that the European Union vetoed the company’s $7 billion takeover of Grail Inc amid concerns the deal would have hampered competition.
|
United Airlines Holdings (UAL), American Airlines Group (AAL), and Delta Air Lines (DAL) are down by more than -5%. ECB Vice President Guindos said the ECB must stay vigilant on inflation, and interest rates are likely to stay at their current levels for some time "due to the evolution of oil prices, the depreciation of the euro, and the evolution of unit labor costs. Precious metals are climbing on increased safe-haven demand today as global stocks retreated on geopolitical risks after Hamas militants attacked Israel over the weekend.
|
United Airlines Holdings (UAL), American Airlines Group (AAL), and Delta Air Lines (DAL) are down by more than -5%. Today’s stock movers… Cruise line operators are retreating today as travel stocks take a hit on the conflict in the Middle East. Precious metals are climbing on increased safe-haven demand today as global stocks retreated on geopolitical risks after Hamas militants attacked Israel over the weekend.
|
United Airlines Holdings (UAL), American Airlines Group (AAL), and Delta Air Lines (DAL) are down by more than -5%. Stocks are mixed after the militant group Hamas attacked Israel over the weekend, leaving more than 1,100 dead. EUR/USD (^EURUSD) today is down by -0.32%.
|
2197.0
|
2023-10-09 00:00:00 UTC
|
Stocks Recover Early Losses on Dovish Fed Remarks
|
AAL
|
https://www.nasdaq.com/articles/stocks-recover-early-losses-on-dovish-fed-remarks
|
nan
|
nan
|
What you need to know…
The S&P 500 Index ($SPX) (SPY) on Monday closed up +0.63%, the Dow Jones Industrials Index ($DOWI) (DIA) closed up +0.59%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed up +0.49%.
Stocks on Monday recovered from early losses and posted moderate gains, with the S&P 500 and Nasdaq 100 climbing to 2-week highs and the Dow Jones Industrials posting a 1-week high. Stocks moved higher Monday on dovish Fed comments that signal the Fed may be willing to pause its rate hike cycle, saying the recent jump in long-term bond yields may mean less need for the Fed to tighten monetary policy again.
Stocks initially opened lower Monday morning as geopolitical concerns sparked risk-off sentiment in asset markets after the militant group Hamas attacked Israel over the weekend, leaving more than 1,100 dead. European government bond yields moved lower as investors flocked to the safety of government debt, although trading in the U.S. Treasury market was closed Monday for the Columbus Day holiday.
The attack by Hamas on Israel sent crude oil prices soaring by more than +4% on concern the conflict could widen and threaten crude supplies from the Middle East. The U.S. sent a group of warships to the eastern Mediterranean. The Wall Street Journal reported that Iranian security officials helped Hamas plan Saturday’s surprise attack, which raises the risk there may be retaliation measures against Iran.
On the positive side for stocks, Monday’s surge in crude prices by more than +4% sparked a rally in energy stocks. Also, the surprise attack by Hamas on Israel over the weekend has fueled gains in defense stocks.
Fed Vice Chair Jefferson said policymakers are "in a position to proceed carefully in assessing the extent of any additional policy firming that may be necessary," as the recent increase in Treasury yields acts as a potential further restraint on the economy. Vice Chair Jefferson’s comments suggest he favors pausing fed rate hikes.
Comments on Monday from Dallas Fed President Logan, a known hawk, supported stocks. Logan believes the recent jump in long-term Treasury yields may mean less need for the Fed to raise interest rates again, saying, "Higher term premiums result in higher interest rates for the same setting of the fed funds rate, all else equal. Thus, if premiums rise, they could do some of the work of cooling the economy for us, leaving less need for additional monetary policy tightening."
The markets are discounting a 12% chance that the FOMC will raise the funds rate by +25 bp at the next FOMC meeting that ends on November 1, and a 28% chance for that +25 bp rate hike at the following meeting that ends on December 13. The markets are then expecting the FOMC to begin cutting rates in the second half of 2024 in response to an expected slowdown in the U.S. economy.
European bond yields on Monday moved lower. The 10-year T-note is not trading today, with the U.S. Treasury market closed for the Columbus Day holiday. The 10-year German bund yield fell to a 2-week low of 2.763% and finished down -11.2 bp at 2.772%. The 10-year UK gilt yield fell to a 1-week low of 4.472% and finished down -9.7 bp at 4.476%.
ECB Vice President Guindos said the ECB must stay vigilant on inflation, and interest rates are likely to stay at their current levels for some time "due to the evolution of oil prices, the depreciation of the euro, and the evolution of unit labor costs.
The Eurozone Oct Sentix investor confidence fell -0.4 to -21.9, a smaller decline than expectations of -24.0.
German Aug industrial production fell -0.2% m/m, weaker than expectations of -0.1% m/m.
Overseas stock markets on Monday settled lower. The Euro Stoxx 50 closed down -0.77%. China’s Shanghai Composite Index closed down -0.44%. Japan’s Nikkei 225 today was closed for a holiday.
Today’s stock movers…
Defense stocks rallied Monday after the surprise attack by Hamas on Israel over the weekend. Northrop Grumman (NOC) closed up more than +11% to lead gainers in the S&P 500. Also, L3Harris Technologies (LHX) and Huntington Ingalls Industries (HII) closed up more than +9%. In addition, Lockheed Martin (LMT) and General Dynamics (GD) closed up more than +8%, and RTX Corp (RTX) closed up more than +4%.
Energy stocks and energy service companies moved higher after the price of WTI crude jumped more than +4%. As a result, Marathon Oil (MRO) and Haliburton closed up more than +6%. Also, Devon Energy (DVN), ConocoPhillips (COP), and Hess Corp (HES) closed up more than +5%. In addition, Occidental Petroleum (OXY) and Schlumberger (SLB) closed up more than +4%. Finally, Chevron (CVX) closed up more than +2% to lead gainers in the Dow Jones Industrials.
Zscaler (ZS) closed up more than +3% to lead gainers in the Nasdaq 100 after Barclays upgraded the stock to overweight from equal weight.
Motorola Solutions (MSI) closed up more than +3% after Bank of America started coverage of the stock with a buy recommendation and a price target of $330.
Kinder Morgan (KMI) closed up more than +2% after Goldman Sachs reinstated coverage of the stock with a buy recommendation and a price target of $20.
Walt Disney (DIS) closed up more than +2% after activist investor Nelon Peltz’s Trian Fund Management increased its Disney holding to more than 30 million shares and is said to be seeking several seats on Disney’s board of directors.
Airline stocks were under pressure Monday as most international carriers suspended flights to Israel following the surprise attack by Hamas over the weekend. United Airlines Holdings (UAL) closed down more than -5% to lead losers in the S&P 500. Also, Delta Air Lines (DAL) closed down by more than -5%, and American Airlines Group (AAL) closed down by more than -4%. In addition, Alaska Air Group (ALK) and Southwest Airlines (LUV) closed down more than -2%.
Cruise line operators retreated Monday as travel stocks took a hit on the conflict in the Middle East. Carnival (CCL) closed down more than -4%. Also, Royal Caribbean Cruises Ltd (RCL) closed down more than -3%, and Norwegian Cruise Line Holdings (NCLH) closed down more than -1%.
Datadog (DDOG) closed down more than -3% after Bank of America downgraded the stock to neutral from buy.
Fidelity National Information (FIS) closed down more than -2% after Truist Securities cut its price target on the stock to $50 from $60.
Moderna (MRNA) closed down more than -2% after Bloomberg Intelligence said the company would need a “significant acceleration in inoculations” in Q4 of its Covid vaccines to achieve its guidance range of $6 billion to $8 billion.
Illumina (ILMN) closed down more than -1% after Bloomberg reported that the European Union vetoed the company’s $7 billion takeover of Grail Inc amid concerns the deal would have hampered competition.
Across the markets…
December 10-year T-notes (ZNZ23) Monday closed up +1-00/32 point, although the cash Treasury market was closed Monday for the Columbus Day holiday. Dec T-note futures rallied to a 1-week high Monday on the increase in safe-have demand due to geopolitical risks after the surprise attack by Hamas militants on Israel over the weekend. T-notes extended their gains Monday on dovish comments from Fed Vice Chair Jefferson and Dallas Fed President Logan, who said the recent jump in long-term Treasury yields may mean less need for the Fed to raise interest rates again. Monday’s +4% surge in crude oil prices raised inflation expectations and was negative for T-notes.
More Stock Market News from Barchart
Dollar Gives Up Early Gains on Dovish Fed Comments
Missed Out on Nvidia? Here's Another Top AI Stock to Buy Now
This Warren Buffett Stock Is a Deep Value Buy After Its Latest Slide
3 Reasons to Buy Advanced Micro Devices Stock Right Now
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Also, Delta Air Lines (DAL) closed down by more than -5%, and American Airlines Group (AAL) closed down by more than -4%. Stocks initially opened lower Monday morning as geopolitical concerns sparked risk-off sentiment in asset markets after the militant group Hamas attacked Israel over the weekend, leaving more than 1,100 dead. The Wall Street Journal reported that Iranian security officials helped Hamas plan Saturday’s surprise attack, which raises the risk there may be retaliation measures against Iran.
|
Also, Delta Air Lines (DAL) closed down by more than -5%, and American Airlines Group (AAL) closed down by more than -4%. Today’s stock movers… Defense stocks rallied Monday after the surprise attack by Hamas on Israel over the weekend. Dec T-note futures rallied to a 1-week high Monday on the increase in safe-have demand due to geopolitical risks after the surprise attack by Hamas militants on Israel over the weekend.
|
Also, Delta Air Lines (DAL) closed down by more than -5%, and American Airlines Group (AAL) closed down by more than -4%. What you need to know… The S&P 500 Index ($SPX) (SPY) on Monday closed up +0.63%, the Dow Jones Industrials Index ($DOWI) (DIA) closed up +0.59%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed up +0.49%. Stocks moved higher Monday on dovish Fed comments that signal the Fed may be willing to pause its rate hike cycle, saying the recent jump in long-term bond yields may mean less need for the Fed to tighten monetary policy again.
|
Also, Delta Air Lines (DAL) closed down by more than -5%, and American Airlines Group (AAL) closed down by more than -4%. Stocks moved higher Monday on dovish Fed comments that signal the Fed may be willing to pause its rate hike cycle, saying the recent jump in long-term bond yields may mean less need for the Fed to tighten monetary policy again. T-notes extended their gains Monday on dovish comments from Fed Vice Chair Jefferson and Dallas Fed President Logan, who said the recent jump in long-term Treasury yields may mean less need for the Fed to raise interest rates again.
|
2198.0
|
2023-10-09 00:00:00 UTC
|
Notable Monday Option Activity: AAL, MDLZ, BTU
|
AAL
|
https://www.nasdaq.com/articles/notable-monday-option-activity%3A-aal-mdlz-btu
|
nan
|
nan
|
Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in American Airlines Group Inc (Symbol: AAL), where a total of 150,033 contracts have traded so far, representing approximately 15.0 million underlying shares. That amounts to about 47.8% of AAL's average daily trading volume over the past month of 31.4 million shares. Especially high volume was seen for the $14 strike call option expiring November 17, 2023, with 14,004 contracts trading so far today, representing approximately 1.4 million underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $14 strike highlighted in orange:
Mondelez International Inc (Symbol: MDLZ) saw options trading volume of 31,687 contracts, representing approximately 3.2 million underlying shares or approximately 47% of MDLZ's average daily trading volume over the past month, of 6.7 million shares. Especially high volume was seen for the $55 strike put option expiring June 21, 2024, with 15,615 contracts trading so far today, representing approximately 1.6 million underlying shares of MDLZ. Below is a chart showing MDLZ's trailing twelve month trading history, with the $55 strike highlighted in orange:
And Peabody Energy Corp (Symbol: BTU) options are showing a volume of 13,657 contracts thus far today. That number of contracts represents approximately 1.4 million underlying shares, working out to a sizeable 46.7% of BTU's average daily trading volume over the past month, of 2.9 million shares. Especially high volume was seen for the $22 strike call option expiring June 21, 2024, with 1,089 contracts trading so far today, representing approximately 108,900 underlying shares of BTU. Below is a chart showing BTU's trailing twelve month trading history, with the $22 strike highlighted in orange:
For the various different available expirations for AAL options, MDLZ options, or BTU options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
Also see:
GSIT market cap history
SLX Average Annual Return
Institutional Holders of ETUB
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Especially high volume was seen for the $14 strike call option expiring November 17, 2023, with 14,004 contracts trading so far today, representing approximately 1.4 million underlying shares of AAL. Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in American Airlines Group Inc (Symbol: AAL), where a total of 150,033 contracts have traded so far, representing approximately 15.0 million underlying shares. That amounts to about 47.8% of AAL's average daily trading volume over the past month of 31.4 million shares.
|
Below is a chart showing AAL's trailing twelve month trading history, with the $14 strike highlighted in orange: Mondelez International Inc (Symbol: MDLZ) saw options trading volume of 31,687 contracts, representing approximately 3.2 million underlying shares or approximately 47% of MDLZ's average daily trading volume over the past month, of 6.7 million shares. Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in American Airlines Group Inc (Symbol: AAL), where a total of 150,033 contracts have traded so far, representing approximately 15.0 million underlying shares. That amounts to about 47.8% of AAL's average daily trading volume over the past month of 31.4 million shares.
|
Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in American Airlines Group Inc (Symbol: AAL), where a total of 150,033 contracts have traded so far, representing approximately 15.0 million underlying shares. Below is a chart showing AAL's trailing twelve month trading history, with the $14 strike highlighted in orange: Mondelez International Inc (Symbol: MDLZ) saw options trading volume of 31,687 contracts, representing approximately 3.2 million underlying shares or approximately 47% of MDLZ's average daily trading volume over the past month, of 6.7 million shares. That amounts to about 47.8% of AAL's average daily trading volume over the past month of 31.4 million shares.
|
Below is a chart showing AAL's trailing twelve month trading history, with the $14 strike highlighted in orange: Mondelez International Inc (Symbol: MDLZ) saw options trading volume of 31,687 contracts, representing approximately 3.2 million underlying shares or approximately 47% of MDLZ's average daily trading volume over the past month, of 6.7 million shares. Below is a chart showing BTU's trailing twelve month trading history, with the $22 strike highlighted in orange: For the various different available expirations for AAL options, MDLZ options, or BTU options, visit StockOptionsChannel.com. Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in American Airlines Group Inc (Symbol: AAL), where a total of 150,033 contracts have traded so far, representing approximately 15.0 million underlying shares.
|
2199.0
|
2023-10-09 00:00:00 UTC
|
Stocks Higher Despite Middle East Turmoil
|
AAL
|
https://www.nasdaq.com/articles/stocks-higher-despite-middle-east-turmoil
|
nan
|
nan
|
What you need to know…
The S&P 500 Index ($SPX) (SPY) today is up +0.58%, the Dow Jones Industrials Index ($DOWI) (DIA) is up +0.51%, and the Nasdaq 100 Index ($IUXX) (QQQ) is up +0.39%.
Stocks are higher this afternoon, despite the militant group Hamas attacked Israel over the weekend, leaving more than 1,100 dead. European government bond yields are lower as investors flock to the safety of government debt, although trading in the U.S. Treasury market is closed today for the Columbus Day holiday.
The attack by Hamas on Israel sent crude oil prices soaring by more than +4% on concern the conflict could widen and threaten crude supplies from the Middle East. The U.S. sent a group of warships to the eastern Mediterranean. The Wall Street Journal reported that Iranian security officials helped Hamas plan Saturday’s surprise attack, which raises the risks there may be retaliation measures against Iran.
On the positive side for stocks, today’s surge in crude prices has sparked a rally in energy stocks. Also, the surprise attack by Hamas on Israel over the weekend has fueled gains in defense stocks.
Dovish comments today from Dallas Fed President Logan, a known hawk, are supporting stocks. Logan believes the recent jump in long-term Treasury yields may mean less need for the Fed to raise interest rates again, saying, "Higher term premiums result in higher interest rates for the same setting of the fed funds rate, all else equal. Thus, if premiums rise, they could do some of the work of cooling the economy for us, leaving less need for additional monetary policy tightening."
The markets are discounting a 14% chance that the FOMC will raise the funds rate by +25 bp at the next FOMC meeting that ends on November 1, and a 27% chance for that +25 bp rate hike at the following meeting that ends on December 13. The markets are then expecting the FOMC to begin cutting rates in the second half of 2024 in response to an expected slowdown in the U.S. economy.
European bond yields are moving lower. The 10-year T-note is not trading today, with the U.S. Treasury market closed for the Columbus Day holiday. The 10-year German bund yield fell to a 1-1/2 week low of 2.774% and is down -10.3 bp at 2.781%. The 10-year UK gilt yield fell to a 1-week low of 4.483% and is down -7.5 bp at 4.499%.
Overseas stock markets are lower. The Euro Stoxx 50 is down -0.98%. China’s Shanghai Composite Index closed down -0.44%. Japan’s Nikkei 225 today was closed for a holiday.
Today’s stock movers…
Cruise line operators are retreating today as travel stocks take a hit on the conflict in the Middle East. Carnival (CCL) is down more than -6% to lead losers in the S&P 500. Also, Norwegian Cruise Line Holdings (NCLH) and Royal Caribbean Cruises Ltd (RCL) are down more than -4%.
Airline stocks are under pressure today as most international carriers suspended flights to Israel following the surprise attack by Hamas over the weekend. United Airlines Holdings (UAL), American Airlines Group (AAL), and Delta Air Lines (DAL) are down by more than -5%. Also, Alaska Air Group (ALK) is down more than -3%, and Southwest Airlines (LUV) is down more than -3%.
Paramount Global (PARA) is down more than -3% after Needham & Co cut its price target on the stock to $15 from $28.
Walmart (WMT) is down more than -1% to lead losers in the Dow Joines Industrials after a three-year probe by Mexican investigators concluded the company had abused its market power.
Moderna (MRNA) is down more than -5% to lead losers in the Nasdaq 100 after Bloomberg Intelligence said the company would need a “significant acceleration in inoculations” in Q4 of its Covid vaccines to achieve its guidance range of $6 billion to $8 billion.
Datadog (DDOG) is down more than -4% after Bank of America downgraded the stock to neutral from buy.
Illumina (ILMN) is down more than -3% after Bloomberg reported that the European Union vetoed the company’s $7 billion takeover of Grail Inc amid concerns the deal would have hampered competition.
Fidelity National Information (FIS) is down more than -3% after Truist Securities cut its price target on the stock to $50 from $60.
Defense stocks are rallying today after the surprise attack by Hamas on Israel over the weekend. Northrop Grumman (NOC) is up more than +8% to lead gainers in the S&P 500. Also, Lockheed Martin (LMT), L3Harris Technologies (LHX), General Dynamics (GD), and Huntington Ingalls Industries (HII) are up more than +6%. In addition, RTX Corp (RTX) is up more than +3%.
Energy stocks and energy service companies are climbing today, with the price of WTI crude up more than +3%. As a result, Marathon Oil (MRO) and Hess Corp (HES) are up more than +5%. Also, ConocoPhillips (COP), Devon Energy (DVN), Exxon Mobil (XOM), Occidental Petroleum (OXY), and Schlumberger (SLB) are up more than +4%. In addition, Chevron (CVX) is up more than +3% to lead gainers in the Dow Jones Industrials.
Zscaler (ZS) is up more than +6% to lead gainers in the Nasdaq 100 after Barclays upgraded the stock to overweight from equal weight.
Motorola Solutions (MSI) is up more than +3% after Bank of America started coverage of the stock with a buy recommendation and a price target of $330.
Kinder Morgan (KMI) is up more than +2% after Goldman Sachs reinstated coverage of the stock with a buy recommendation and a price target of $20.
Across the markets…
December 10-year T-notes (ZNZ23) this morning are up +26 ticks at a 1-week high, although the U.S. cash Treasury market is closed today for the Columbus Day holiday. T-notes have support from safe-haven demand due to geopolitical risks after the surprise attack by Hamas militants on Israel over the weekend. Dovish comments from Dallas Fed President Logan also gave T-notes a boost when she said the recent jump in long-term Treasury yields may mean less need for the Fed to raise interest rates again.
The dollar index (DXY00) today is up by +0.21%. The dollar is moving higher today on increased safe-haven demand after Israel declared war on Hamas. The stock slide today has also boosted the liquidity demand for the dollar. The dollar fell back from its best levels on comments from Dallas Fed President Logan, who said higher Treasury yields may mean less of a need for the Fed to raise interest rates.
EUR/USD (^EURUSD) today is down by -0.32%. A stronger dollar today is weighing on the euro. Losses in EUR/USD are limited by hawkish comments from ECB Vice President Guindos, who said interest rates are likely to stay at their current levels for some time.
Today’s Eurozone economic news was mixed for the euro. On the negative side, German Aug industrial production fell -0.2% m/m, slightly weaker than expectations of -0.1% m/m. Conversely, Eurozone Oct Sentix investor confidence fell -0.4 to -21.9, a smaller decline than expectations of -24.0.
ECB Vice President Guindos said the ECB must stay vigilant on inflation, and interest rates are likely to stay at their current levels for some time "due to the evolution of oil prices, the depreciation of the euro, and the evolution of unit labor costs.
USD/JPY (^USDJPY) today is down by -0.35%. Ramped-up geopolitical risks have sparked safe-haven buying of the yen after the surprise attack by Hamas militants on Israel over the weekend. Also, a rally in T-note prices today is supportive of the yen. Trading activity in the yen is muted, with Japanese markets closed today for the Health Sports Day holiday.
December gold (GCZ3) today is up +13.9 (+0.75%), and Dec silver (SIZ23) is up +0.042 (+0.19%). Precious metals prices this morning are moderately higher, with gold and silver posting 1-week highs. Precious metals are climbing on increased safe-haven demand today as global stocks retreated on geopolitical risks after Hamas militants attacked Israel over the weekend. Also, dovish comments today from Dallas Fed President Logan gave precious metals a boost when she said the recent jump in long-term Treasury yields may mean less need for the Fed to raise interest rates again. A stronger dollar today is limiting the upside in precious metals. Also, long liquidation pressures are weighing on gold after long gold holdings in ETFs fell to a 3-1/2 year low last Friday.
More Stock Market News from Barchart
Here's My No. 1 "Magnificent Seven" AI Stock Pick
Markets Today: Stocks Retreat on Conflict in the Middle East
Option Volatility And Earnings Report For October 9 - 13
Stocks Set to Open Lower as Investors Await U.S. Inflation Data and FOMC Minutes, Oil Soars on Middle East Conflict
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
United Airlines Holdings (UAL), American Airlines Group (AAL), and Delta Air Lines (DAL) are down by more than -5%. The Wall Street Journal reported that Iranian security officials helped Hamas plan Saturday’s surprise attack, which raises the risks there may be retaliation measures against Iran. Walmart (WMT) is down more than -1% to lead losers in the Dow Joines Industrials after a three-year probe by Mexican investigators concluded the company had abused its market power.
|
United Airlines Holdings (UAL), American Airlines Group (AAL), and Delta Air Lines (DAL) are down by more than -5%. ECB Vice President Guindos said the ECB must stay vigilant on inflation, and interest rates are likely to stay at their current levels for some time "due to the evolution of oil prices, the depreciation of the euro, and the evolution of unit labor costs. Precious metals are climbing on increased safe-haven demand today as global stocks retreated on geopolitical risks after Hamas militants attacked Israel over the weekend.
|
United Airlines Holdings (UAL), American Airlines Group (AAL), and Delta Air Lines (DAL) are down by more than -5%. Today’s stock movers… Cruise line operators are retreating today as travel stocks take a hit on the conflict in the Middle East. Precious metals are climbing on increased safe-haven demand today as global stocks retreated on geopolitical risks after Hamas militants attacked Israel over the weekend.
|
United Airlines Holdings (UAL), American Airlines Group (AAL), and Delta Air Lines (DAL) are down by more than -5%. In addition, Chevron (CVX) is up more than +3% to lead gainers in the Dow Jones Industrials. EUR/USD (^EURUSD) today is down by -0.32%.
|
Subsets and Splits
No community queries yet
The top public SQL queries from the community will appear here once available.