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
|
|---|---|---|---|---|---|---|---|---|---|---|---|
2200.0
|
2023-10-09 00:00:00 UTC
|
US STOCKS-Wall Street declines on Middle East conflict
|
AAL
|
https://www.nasdaq.com/articles/us-stocks-wall-street-declines-on-middle-east-conflict
|
nan
|
nan
|
By Shashwat Chauhan and Ankika Biswas
Oct 9 (Reuters) - Wall Street's main indexes fell on Monday as a deepening conflict between Israel and the Palestinian Islamist group Hamas roiled global markets and pushed investors toward safe-haven assets, while crude prices jumped around 4%.
Israel said its troops backed by helicopters had killed a number of armed infiltrators entering the country from Lebanon, raising fears fighting could spread two days after Hamas gunmen burst in from Gaza on a deadly rampage.
The Israeli military said it had called up an unprecedented 300,000 reservists and was imposing a total blockade of the Gaza Strip, signs it could be planning a ground assault.
U.S. Defense Secretary Lloyd Austin said the United States will send multiple military ships and aircraft closer to Israel as a show of support.
At 11:33 a.m. ET, the Dow Jones Industrial Average .DJI was down 13.18 points, or 0.04%, at 33,394.40, the S&P 500 .SPX was down 6.67 points, or 0.15%, at 4,301.83, and the Nasdaq Composite .IXIC was down 75.77 points, or 0.56%, at 13,355.57.
The CBOE volatility index .VIX, Wall Street's "fear gauge", also rose to 18.54, reflecting investor anxiety.
A recent surge in U.S. Treasury yields had pressured equities. The U.S. bond market was shut on Monday for Columbus Day.
Major technology stocks Apple AAPL.O, Microsoft MSFT.O, Nvidia NVDA.O and Amazon.com AMZN.O fell between 0.2% and 2.7%.
Traditional safe-haven assets including goldXAU= and the U.S. dollar=USD gained, while crude prices increased.
"It's not surprising that the market would open with considerable volatility given these shocking events over the weekend and the speculation as to whether or not this will evolve into something more complicated," said Peter Andersen, founder of Andersen Capital Management in Boston.
Energy .SPNY was the top S&P 500 sector gainer, jumping 3.6% and on track for its best single-day performance in six months.
United Airlines UAL.O, Delta Air Lines DAL.N and American Airlines AAL.Osuspended direct flights to Tel Aviv. The airlines' shares were down around 5% each, dragging the S&P 500 Passenger Airlines index .SPLRCALI down 4.5% to its lowest in a year.
Defense companies Northrop Grumman NOC.N, RTX RTX.N, General Dynamics GD.N, L3harris LHX.N and Lockheed Martin LMT.N rose between 4.3% and 8.7%. The broader S&P 500 Aerospace & Defense index .SPLRCAERO jumped 4.9%.
Consumer discretionary .SPLRCD and consumer staples stocks .SPLRCS were the worst hit on Monday.
Exchange-traded funds exposed to Israel including iShares MSCI Israel ETF EIS.N and the ARK Israel Innovative Technology ETF IZRL.N slid 7.8% and 4.6%, respectively.
For the week, key inflation readings including September's producer price and consumer price indexes, as well as the Federal Reserve's September meeting minutes will be in focus.
TeslaTSLA.O fell 2.5% as data showed the company's China-made EV sales volume for September decreased 10.9% from a year earlier.
Advancing issues outnumbered decliners for a 1.20-to-1 ratio on the NYSE, while declining issues outnumbered advancers for a 1.61-to-1 ratio on the Nasdaq.
The S&P index recorded four new 52-week highs and 18 new lows, while the Nasdaq recorded 24 new highs and 236 new lows.
(Reporting by Shashwat Chauhan and Ankika Biswas in Bengaluru; Editing by Arun Koyyur and Shounak Dasgupta)
((Shashwat.Chauhan@thomsonreuters.com; 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.
|
United Airlines UAL.O, Delta Air Lines DAL.N and American Airlines AAL.Osuspended direct flights to Tel Aviv. By Shashwat Chauhan and Ankika Biswas Oct 9 (Reuters) - Wall Street's main indexes fell on Monday as a deepening conflict between Israel and the Palestinian Islamist group Hamas roiled global markets and pushed investors toward safe-haven assets, while crude prices jumped around 4%. Israel said its troops backed by helicopters had killed a number of armed infiltrators entering the country from Lebanon, raising fears fighting could spread two days after Hamas gunmen burst in from Gaza on a deadly rampage.
|
United Airlines UAL.O, Delta Air Lines DAL.N and American Airlines AAL.Osuspended direct flights to Tel Aviv. By Shashwat Chauhan and Ankika Biswas Oct 9 (Reuters) - Wall Street's main indexes fell on Monday as a deepening conflict between Israel and the Palestinian Islamist group Hamas roiled global markets and pushed investors toward safe-haven assets, while crude prices jumped around 4%. The CBOE volatility index .VIX, Wall Street's "fear gauge", also rose to 18.54, reflecting investor anxiety.
|
United Airlines UAL.O, Delta Air Lines DAL.N and American Airlines AAL.Osuspended direct flights to Tel Aviv. By Shashwat Chauhan and Ankika Biswas Oct 9 (Reuters) - Wall Street's main indexes fell on Monday as a deepening conflict between Israel and the Palestinian Islamist group Hamas roiled global markets and pushed investors toward safe-haven assets, while crude prices jumped around 4%. Exchange-traded funds exposed to Israel including iShares MSCI Israel ETF EIS.N and the ARK Israel Innovative Technology ETF IZRL.N slid 7.8% and 4.6%, respectively.
|
United Airlines UAL.O, Delta Air Lines DAL.N and American Airlines AAL.Osuspended direct flights to Tel Aviv. By Shashwat Chauhan and Ankika Biswas Oct 9 (Reuters) - Wall Street's main indexes fell on Monday as a deepening conflict between Israel and the Palestinian Islamist group Hamas roiled global markets and pushed investors toward safe-haven assets, while crude prices jumped around 4%. Consumer discretionary .SPLRCD and consumer staples stocks .SPLRCS were the worst hit on Monday.
|
2201.0
|
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
|
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.
According to preliminary data, the S&P 500 .SPX gained 27.35 points, or 0.63%, to end at 4,335.85 points, while the Nasdaq Composite .IXIC gained 53.90 points, or 0.40%, to 13,485.24. The Dow Jones Industrial Average .DJI rose 199.83 points, or 0.60%, to 33,607.41.
Traditional safe-haven assets remained in demand, with goldXAU= climbing, but the U.S. dollar index =USD gave up earlier gains.
Rising oil prices boosted the S&P energy .SPNY sector, 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, putting pressure on the S&P 500 Passenger Airlines index .SPLRCALI.
Defense companies had rallied after the news from Israel, with the S&P 500 Aerospace & Defense index .SPLRCAERO. Big advancers included Northrop Grumman NOC.N and L3Harris Technologies LHX.N.
Exchange-traded funds exposed to Israel were selling off, with iShares MSCI Israel ETF EIS.N falling along with the ARK Israel Innovative Technology ETF IZRL.N.
(Reporting by Sinéad Carew 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. "The stock market and investors are focused on two things, the economy and earnings.
|
2202.0
|
2023-10-09 00:00:00 UTC
|
S&P 500 Movers: AAL, NOC
|
AAL
|
https://www.nasdaq.com/articles/sp-500-movers%3A-aal-noc
|
nan
|
nan
|
In early trading on Monday, shares of Northrop Grumman topped the list of the day's best performing components of the S&P 500 index, trading up 9.7%. Year to date, Northrop Grumman has lost about 14.9% of its value.
And the worst performing S&P 500 component thus far on the day is American Airlines Group, trading down 5.6%. American Airlines Group is lower by about 5.3% looking at the year to date performance.
Two other components making moves today are United Airlines Holdings, trading down 5.4%, and Lockheed Martin, trading up 8.2% on the day.
VIDEO: S&P 500 Movers: AAL, NOC
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
VIDEO: S&P 500 Movers: AAL, NOC The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. And the worst performing S&P 500 component thus far on the day is American Airlines Group, trading down 5.6%. American Airlines Group is lower by about 5.3% looking at the year to date performance.
|
VIDEO: S&P 500 Movers: AAL, NOC The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Year to date, Northrop Grumman has lost about 14.9% of its value. And the worst performing S&P 500 component thus far on the day is American Airlines Group, trading down 5.6%.
|
VIDEO: S&P 500 Movers: AAL, NOC The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In early trading on Monday, shares of Northrop Grumman topped the list of the day's best performing components of the S&P 500 index, trading up 9.7%. And the worst performing S&P 500 component thus far on the day is American Airlines Group, trading down 5.6%.
|
VIDEO: S&P 500 Movers: AAL, NOC The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In early trading on Monday, shares of Northrop Grumman topped the list of the day's best performing components of the S&P 500 index, trading up 9.7%. And the worst performing S&P 500 component thus far on the day is American Airlines Group, trading down 5.6%.
|
2203.0
|
2023-10-09 00:00:00 UTC
|
US STOCKS-S&P 500, Nasdaq fall on Middle East conflict
|
AAL
|
https://www.nasdaq.com/articles/us-stocks-sp-500-nasdaq-fall-on-middle-east-conflict
|
nan
|
nan
|
By Shashwat Chauhan and Ankika Biswas
Oct 9 (Reuters) - The S&P 500 and the Nasdaq fell on Monday as a deepening conflict between Israel and the Palestinian Islamist group Hamas roiled global markets and pushed investors toward safe-haven assets, while crude prices jumped over 3%.
Israel said its troops backed by helicopters had killed a number of armed infiltrators entering the country from Lebanon, raising fears fighting could spread two days after Hamas gunmen burst in from Gaza on a deadly rampage.
The Israeli military said it had called up an unprecedented 300,000 reservists and was imposing a total blockade of the Gaza Strip, signs it could be planning a ground assault.
U.S. Defense Secretary Lloyd Austin said the United States will send multiple military ships and aircraft closer to Israel as a show of support.
At 9:40 a.m. ET, the Dow Jones Industrial Average .DJI was down 12.14 points, or 0.04%, at 33,395.44, the S&P 500 .SPX was down 14.98 points, or 0.35%, at 4,293.52, and the Nasdaq Composite .IXIC was down 127.02 points, or 0.95%, at 13,304.33.
The CBOE volatility index .VIX, Wall Street's "fear gauge", also rose to 18.59, reflecting investor anxiety.
Major technology stocks Apple AAPL.O, Microsoft MSFT.O Alphabet GOOGL.O, Nvidia NVDA.O and Amazon.com AMZN.O fell between 0.5% and 2.3%.
Traditional safe-haven assets including goldXAU= and the U.S. dollar=USD gained, while crude prices increased.
"We expect short-term volatility in the stock market and oil market as investors digest the heightened tensions in the Middle East," said James Demmert, chief investment officer, Main Street Research.
United Airlines UAL.O, Delta Air Lines DAL.N and American Airlines AAL.Osuspended direct flights to Tel Aviv. The airlines' shares were down around 5% each, dragging the S&P 500 Passenger Airlines index .SPLRCALI 4.4% lower.
Energy .SPNY was the top S&P 500 sector gainer with a near 3% rise, while consumer discretionary .SPLRCD and information technology .SPLRCT were the worst hit.
Defense companies Northrop Grumman NOC.N, RTX RTX.N, General Dynamics GD.N and Lockheed Martin LMT.N rose between 5.5% and 8.5%.
Exchange-traded funds exposed to Israel including iShares MSCI Israel ETF EIS.N and the ARK Israel Innovative Technology ETF IZRL.N slid 7.6% and 4.4%, respectively.
For the week, key inflation readings including September's producer price and consumer price indexes, as well as the Federal Reserve's September meeting minutes will be in focus.
Dallas Fed President Lorie Logan said the recent rise in long-term U.S. Treasury yields and tighter financial conditions more generally could mean less need for the U.S. central bank to raise interest rates further.
The U.S. bond market was shut on Monday for Columbus Day.
Focus will also be on the upcoming quarterly earnings from major banks including JPMorgan Chase JPM.N, Wells Fargo WFC.N, Citigroup C.N as well as asset manager BlackRock BLK.N.
TeslaTSLA.O shed 2.5% as data showed the company's China-made EV sales volume for September decreased 10.9% from a year ago.
Declining issues outnumbered advancers for a 1.45-to-1 ratio on the NYSE and a 2.40-to-1 ratio on the Nasdaq.
The S&P index recorded four new 52-week highs and six new lows, while the Nasdaq recorded 16 new highs and 113 new lows.
(Reporting by Shashwat Chauhan and Ankika Biswas in Bengaluru; Editing by Arun Koyyur and Shounak Dasgupta)
((Shashwat.Chauhan@thomsonreuters.com; 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.
|
United Airlines UAL.O, Delta Air Lines DAL.N and American Airlines AAL.Osuspended direct flights to Tel Aviv. By Shashwat Chauhan and Ankika Biswas Oct 9 (Reuters) - The S&P 500 and the Nasdaq fell on Monday as a deepening conflict between Israel and the Palestinian Islamist group Hamas roiled global markets and pushed investors toward safe-haven assets, while crude prices jumped over 3%. Israel said its troops backed by helicopters had killed a number of armed infiltrators entering the country from Lebanon, raising fears fighting could spread two days after Hamas gunmen burst in from Gaza on a deadly rampage.
|
United Airlines UAL.O, Delta Air Lines DAL.N and American Airlines AAL.Osuspended direct flights to Tel Aviv. By Shashwat Chauhan and Ankika Biswas Oct 9 (Reuters) - The S&P 500 and the Nasdaq fell on Monday as a deepening conflict between Israel and the Palestinian Islamist group Hamas roiled global markets and pushed investors toward safe-haven assets, while crude prices jumped over 3%. The CBOE volatility index .VIX, Wall Street's "fear gauge", also rose to 18.59, reflecting investor anxiety.
|
United Airlines UAL.O, Delta Air Lines DAL.N and American Airlines AAL.Osuspended direct flights to Tel Aviv. By Shashwat Chauhan and Ankika Biswas Oct 9 (Reuters) - The S&P 500 and the Nasdaq fell on Monday as a deepening conflict between Israel and the Palestinian Islamist group Hamas roiled global markets and pushed investors toward safe-haven assets, while crude prices jumped over 3%. Exchange-traded funds exposed to Israel including iShares MSCI Israel ETF EIS.N and the ARK Israel Innovative Technology ETF IZRL.N slid 7.6% and 4.4%, respectively.
|
United Airlines UAL.O, Delta Air Lines DAL.N and American Airlines AAL.Osuspended direct flights to Tel Aviv. By Shashwat Chauhan and Ankika Biswas Oct 9 (Reuters) - The S&P 500 and the Nasdaq fell on Monday as a deepening conflict between Israel and the Palestinian Islamist group Hamas roiled global markets and pushed investors toward safe-haven assets, while crude prices jumped over 3%. Traditional safe-haven assets including goldXAU= and the U.S. dollar=USD gained, while crude prices increased.
|
2204.0
|
2023-10-09 00:00:00 UTC
|
Markets Today: Stocks Retreat on Conflict in the Middle East
|
AAL
|
https://www.nasdaq.com/articles/markets-today%3A-stocks-retreat-on-conflict-in-the-middle-east
|
nan
|
nan
|
Morning Markets
December E-Mini S&P 500 futures (ESZ23) are down -0.71%, and the Dec Nasdaq 100 E-Mini futures (NQZ23) are down -0.88%.
Stock index futures this morning are moderately lower as ramped-up 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 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 +3% 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.
The markets are discounting a 22% chance that the FOMC will raise the funds rate by +25 bp at the next FOMC meeting that ends on November 1, and a 40% 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 yield 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-week low of 2.828% and is down -1.7 bp at 2.867%. The 10-year UK gilt yield is down -0.5 bp at 4.568%.
Overseas stock markets are lower. The Euro Stoxx 50 is down -0.76%. China’s Shanghai Composite Index closed down -0.44%. Japan’s Nikkei 225 today was closed for a holiday.
The Euro Stoxx 50 today is moderately lower on increased geopolitical concerns after the surprise attack by the militant group Hamas on Israel over the weekend. Losses in travel and leisure stocks led the overall market lower as global airlines stopped flights to Israel. However, stocks recovered from their worst levels on a rally in defense stocks, with Saab, Rheinmetall, and Leonardo up at least 5%. Also, energy stocks rose, with crude prices up more than +4%. The global geopolitical tensions and weakness in stocks sparked a rally in European government bonds on a flight to safety, as the 10-year German bund yield fell to a 1-week low.
Today’s Eurozone economic news was mixed for stocks. 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.
China’s Shanghai Composite Stock Index today reopened after a week-long holiday and dropped to a 6-week low and was closed down -0.44%. Travel and tourism stocks declined as disappointing travel news during the Golden Week holiday showed weakness in consumer spending. Government data showed Chinese citizens recorded 826 million domestic trips over the eight-day holiday, bringing in 753.4 billion yuan ($103 billion) in revenue, below estimates for nearly 900 million trips generating 782.5 billion yuan in sales. Property stocks also retreated today on tepid home sales during the Golden Week holiday, a typically strong time of year for home sales. Chinese new home sales during the eight-day holiday fell -17% from last year, and sales of existing properties fell -8% over the same period. Today’s +4% surge in crude prices sparked a rally in energy stocks that helped the overall market recover from its worst levels.
Foreign investors continue to liquidate their Chinese stock holdings as mainland markets reopened from the Golden Week holiday. Overseas funds today sold 7.5 billion yuan ($1 billion) worth of onshore shares on a net basis via trading links with Hong Kong, the most since September 25.
Pre-Market U.S. Stock Movers
Airline stocks are under pressure in pre-market trading 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 -2%.
Cruise line operators are moving lower in pre-market trading as travel stocks take a hit on the conflict in the Middle East. Carnival (CCL), Norwegian Cruise Line Holdings (NCLH), and Royal Caribbean Cruises Ltd (RCL) are down more than -1%.
Technology stocks with exposure to Israel are falling in pre-market trading following the surprise attack by Hamas on Israel over the weekend. Applied Materials (AMAT), Check Point Software Technologies (CHKP), Fortinet (FTNT), Intel (INTC), and Nvidia (NVDA) are down more than -1%.
Datadog (DDOG) tumbled more than -4% in pre-market trading after Bank of America downgraded the stock to neutral from buy.
Energy stocks and energy service companies are climbing in pre-market trading, with the price of WTI crude up more than +3%. As a result, ConocoPhillips (COP), Chevron (CVX), Devon Energy (DVN), Diamondback Energy (FANG), Marathon Oil (MRO), Occidental Petroleum (OXY), and Valero Energy (VLO) are up more than +2%.
Defense stocks are gaining in pre-market trading after the surprise attack by Hamas on Israel over the weekend. Lockheed Martin (LMT), RTX Corp (RTX), Northrop Grumman (NOC), and L3Harris Technologies (LHX) are up more than +3%.
Lennox International (LII) is up more than +1% in pre-market trading after Goldman Sachs double-upgraded the stock to buy from sell.
Oracle (ORCL) rose more than +1% in pre-market trading after Evercore ISI upgraded the stock to outperform from in line.
Earnings Reports (10/9/2023)
Applied Digital Corp (APLD), Waldencast plc (WALD).
More Stock Market News from Barchart
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
3 Strategies To Enhance Returns Beyond Just Buying The Dip
5 Massive Things to Watch in the Market This Week Including FOMC and CPI
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 -2%. Stock index futures this morning are moderately lower as ramped-up 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 global geopolitical tensions and weakness in stocks sparked a rally in European government bonds on a flight to safety, as the 10-year German bund yield fell to a 1-week low.
|
United Airlines Holdings (UAL), American Airlines Group (AAL), and Delta Air Lines (DAL) are down by more than -2%. 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 global geopolitical tensions and weakness in stocks sparked a rally in European government bonds on a flight to safety, as the 10-year German bund yield fell to a 1-week low.
|
United Airlines Holdings (UAL), American Airlines Group (AAL), and Delta Air Lines (DAL) are down by more than -2%. Stock index futures this morning are moderately lower as ramped-up 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. Pre-Market U.S. Stock Movers Airline stocks are under pressure in pre-market trading 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 -2%. The 10-year German bund yield fell to a 1-week low of 2.828% and is down -1.7 bp at 2.867%. Pre-Market U.S. Stock Movers Airline stocks are under pressure in pre-market trading as most international carriers suspended flights to Israel following the surprise attack by Hamas over the weekend.
|
2205.0
|
2023-10-09 00:00:00 UTC
|
Implied Volatility Surging for American Airlines (AAL) Stock Options
|
AAL
|
https://www.nasdaq.com/articles/implied-volatility-surging-for-american-airlines-aal-stock-options
|
nan
|
nan
|
Investors in American Airlines Group Inc. AAL need to pay close attention to the stock based on moves in the options market lately. That is because the Nov 17, 2023 $3.00 Call had some of the highest implied volatility of all equity options today.
What is Implied Volatility?
Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean there is an event coming up soon that may cause a big rally or a huge sell-off. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy.
What do the Analysts Think?
Clearly, options traders are pricing in a big move for American Airlines shares, but what is the fundamental picture for the company? Currently, American Airlines is a Zacks Rank #3 (Hold) in the Transportation - Airline industry that ranks in the Bottom 10% of our Zacks Industry Rank. Over the last 60 days, no analysts have increased their earnings estimates for the current quarter, while eight analysts have revised their estimates downward. The net effect has taken our Zacks Consensus Estimate for the current quarter from 89 cents per share to 33 cents in that period.
Given the way analysts feel about American Airlines right now, this huge implied volatility could mean there’s a trade developing. Oftentimes, options traders look for options with high levels of implied volatility to sell premium. This is a strategy many seasoned traders use because it captures decay. At expiration, the hope for these traders is that the underlying stock does not move as much as originally expected.
Looking to Trade Options?
Check out the simple yet high-powered approach that Zacks Executive VP Kevin Matras has used to close recent double and triple-digit winners. In addition to impressive profit potential, these trades can actually reduce your risk.
Click to see the trades now >>
4 Oil Stocks with Massive Upsides
Global demand for oil is through the roof... and oil producers are struggling to keep up. So even though oil prices are well off their recent highs, you can expect big profits from the companies that supply the world with "black gold."
Zacks Investment Research has just released an urgent special report to help you bank on this trend.
In Oil Market on Fire, you'll discover 4 unexpected oil and gas stocks positioned for big gains in the coming weeks and months. You don't want to miss these recommendations.
Download your free report now to see them.
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.
|
Investors in American Airlines Group Inc. AAL need to pay close attention to the stock based on moves in the options market lately. Click to get this free report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other.
|
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 in American Airlines Group Inc. AAL need to pay close attention to the stock based on moves in the options market lately. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other.
|
Investors in American Airlines Group Inc. AAL need to pay close attention to the stock based on moves in the options market lately. Click to get this free report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other.
|
Investors in American Airlines Group Inc. AAL need to pay close attention to the stock based on moves in the options market lately. Click to get this free report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other.
|
2206.0
|
2023-10-09 00:00:00 UTC
|
US STOCKS-Futures lower as Middle East conflict sparks run for safe-haven assets
|
AAL
|
https://www.nasdaq.com/articles/us-stocks-futures-lower-as-middle-east-conflict-sparks-run-for-safe-haven-assets
|
nan
|
nan
|
By Shashwat Chauhan and Ankika Biswas
Oct 9 (Reuters) - U.S. stock index futures fell on Monday as a deepening conflict between Israel and the Palestinian Islamist group Hamas roiled global markets and pushed investors toward safe-haven assets, while crude prices jumped close to 4%.
Israel's troops were still fighting to clear out Hamas gunmen who killed 700 Israelis and seized hostages, even as the country responded with its heaviest ever bombardment of the Gaza Strip, killing about 500 people.
Israel has acknowledged that the battle was taking longer than expected, more than two days after the militants burst across the fence from Gaza on a deadly rampage.
U.S. Defense Secretary Lloyd Austin said the United States will send multiple military ships and aircraft closer to Israel as a show of support.
At 7:01 a.m. ET, Dow e-minis 1YMcv1 were down 152 points, or 0.45%, S&P 500 e-minis EScv1 were down 24.25 points, or 0.56%, and Nasdaq 100 e-minis NQcv1 were down 109.5 points, or 0.72%.
The CBOE volatility index .VIX, Wall Street's "fear gauge," also rose to 19.10, reflecting investor anxiety.
Traditional safe-haven assets including goldXAU= and the U.S. dollar=USD gained, while growing uncertainty pushed crude prices higher.
"We're seeing a classic safe-haven move, but I would suggest no real sign of panic yet," said Stuart Cole, chief macro economist at Equiti Capital.
"A lot will depend on whether the conflict spreads ... and any disruptions to oil supplies."
Energy companies, including Chevron CVX.N, Exxon Mobil XOM.N, Marathon Oil MRO.N and Occidental Petroleum OXY.N jumped around 3% each in premarket trading.
United Airlines UAL.O, Delta Air Lines DAL.N and American Airlines AAL.Osuspended direct flights to Tel Aviv. Their shares were down more than 2% each.
Gold miner Newmont NEM.N and U.S.-listed shares of Barrick Gold GOLD.Nrose 1.7% and 2.4%, respectively.
Defense companies Northrop Grumman NOC.N, RTX RTX.N, General Dynamics GD.N and Lockheed Martin LMT.N advanced between 2.9% and 4.7%.
The U.S. bond market was shut on Monday for Columbus Day.
Major technology stocks including Apple AAPL.O, Meta Platforms META.O, Alphabet GOOGL.O and Amazon.com AMZN.O dipped 0.9% to 1.2%.
Chip stocks Intel INTC.O, Nvidia NVDA.O, Qualcomm QCOM.O and Advanced Micro Devices AMD.O also lost between 1.0% and 2.2%.
The Nasdaq .IXIC and the S&P 500 .SPX posted weekly gains on Friday as mixed jobs reports kept investors on edge around the Federal Reserve's interest rate outlook.
For the week, key inflation readings including September's producer price and consumer price indexes, as well as the Fed's September meeting minutes will be in focus.
Later on Monday, investors will keep an eye on speeches by Fed Vice Chair Philip Jefferson and Vice Chair for Supervision Michael Barr.
Focus will also be on the upcoming quarterly earnings from major banks including JPMorgan Chase JPM.N, Wells Fargo WFC.N, Citigroup C.N as well as asset manager BlackRock BLK.N.
TeslaTSLA.O shed 1.7% as data showed the company's China-made EV sales volume for September decreased 10.9% from a year ago.
Disney DIS.N gained 0.8% on a report Nelson Peltz's Trian Fund Management has increased its stake in the media giant, with the activist investor expected to request multiple board seats, including for himself.
(Reporting by Shashwat Chauhan 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.
|
United Airlines UAL.O, Delta Air Lines DAL.N and American Airlines AAL.Osuspended direct flights to Tel Aviv. By Shashwat Chauhan and Ankika Biswas Oct 9 (Reuters) - U.S. stock index futures fell on Monday as a deepening conflict between Israel and the Palestinian Islamist group Hamas roiled global markets and pushed investors toward safe-haven assets, while crude prices jumped close to 4%. U.S. Defense Secretary Lloyd Austin said the United States will send multiple military ships and aircraft closer to Israel as a show of support.
|
United Airlines UAL.O, Delta Air Lines DAL.N and American Airlines AAL.Osuspended direct flights to Tel Aviv. By Shashwat Chauhan and Ankika Biswas Oct 9 (Reuters) - U.S. stock index futures fell on Monday as a deepening conflict between Israel and the Palestinian Islamist group Hamas roiled global markets and pushed investors toward safe-haven assets, while crude prices jumped close to 4%. Traditional safe-haven assets including goldXAU= and the U.S. dollar=USD gained, while growing uncertainty pushed crude prices higher.
|
United Airlines UAL.O, Delta Air Lines DAL.N and American Airlines AAL.Osuspended direct flights to Tel Aviv. By Shashwat Chauhan and Ankika Biswas Oct 9 (Reuters) - U.S. stock index futures fell on Monday as a deepening conflict between Israel and the Palestinian Islamist group Hamas roiled global markets and pushed investors toward safe-haven assets, while crude prices jumped close to 4%. For the week, key inflation readings including September's producer price and consumer price indexes, as well as the Fed's September meeting minutes will be in focus.
|
United Airlines UAL.O, Delta Air Lines DAL.N and American Airlines AAL.Osuspended direct flights to Tel Aviv. By Shashwat Chauhan and Ankika Biswas Oct 9 (Reuters) - U.S. stock index futures fell on Monday as a deepening conflict between Israel and the Palestinian Islamist group Hamas roiled global markets and pushed investors toward safe-haven assets, while crude prices jumped close to 4%. Israel's troops were still fighting to clear out Hamas gunmen who killed 700 Israelis and seized hostages, even as the country responded with its heaviest ever bombardment of the Gaza Strip, killing about 500 people.
|
2207.0
|
2023-10-09 00:00:00 UTC
|
Stocks Under Pressure from Middle East Turmoil
|
AAL
|
https://www.nasdaq.com/articles/stocks-under-pressure-from-middle-east-turmoil
|
nan
|
nan
|
What you need to know…
The S&P 500 Index ($SPX) (SPY) today is down -0.36%, the Dow Jones Industrials Index ($DOWI) (DIA) is down -0.25%, and the Nasdaq 100 Index ($IUXX) (QQQ) is down -0.65%.
Stocks this morning are moderately lower 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 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 +3% 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%. Stocks this morning are moderately lower 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 risks there may be retaliation measures against Iran.
|
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%. EUR/USD (^EURUSD) today is down by -0.32%. USD/JPY (^USDJPY) today is down by -0.35%.
|
2208.0
|
2023-10-08 00:00:00 UTC
|
American Airlines Pilot Union Calls For Stopping Flights To Israel, Due To War Declaration
|
AAL
|
https://www.nasdaq.com/articles/american-airlines-pilot-union-calls-for-stopping-flights-to-israel-due-to-war-declaration
|
nan
|
nan
|
(RTTNews) - The pilots' union for American Airlines has directed its members to cease flight operations to Israel until they "can be reasonably assured of the region's safety and security".
"It is not prudent or appropriate to knowingly put our flight crews and passengers in harm's way by maintaining flights into a war zone. Therefore, after careful consideration, I am directing all pilots to cease flight operations to Israel until we can be reasonably assured of the region's safety and security," the pilots' union President Ed Sicher said in a statement on Sunday.
In its most recent Travel Advisory regarding Israel issued earlier Sunday, the State Department said that "the situation in Israel continues to be unpredictable" and that "mortar and rocket fire may take place without warning."
Israel formally declared war Sunday on Hamas militants in Gaza, setting the stage for a massive Israeli military response to the Islamist militant group's surprise attack on the Jewish state.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
(RTTNews) - The pilots' union for American Airlines has directed its members to cease flight operations to Israel until they "can be reasonably assured of the region's safety and security". Therefore, after careful consideration, I am directing all pilots to cease flight operations to Israel until we can be reasonably assured of the region's safety and security," the pilots' union President Ed Sicher said in a statement on Sunday. Israel formally declared war Sunday on Hamas militants in Gaza, setting the stage for a massive Israeli military response to the Islamist militant group's surprise attack on the Jewish state.
|
(RTTNews) - The pilots' union for American Airlines has directed its members to cease flight operations to Israel until they "can be reasonably assured of the region's safety and security". Therefore, after careful consideration, I am directing all pilots to cease flight operations to Israel until we can be reasonably assured of the region's safety and security," the pilots' union President Ed Sicher said in a statement on Sunday. Israel formally declared war Sunday on Hamas militants in Gaza, setting the stage for a massive Israeli military response to the Islamist militant group's surprise attack on the Jewish state.
|
(RTTNews) - The pilots' union for American Airlines has directed its members to cease flight operations to Israel until they "can be reasonably assured of the region's safety and security". Therefore, after careful consideration, I am directing all pilots to cease flight operations to Israel until we can be reasonably assured of the region's safety and security," the pilots' union President Ed Sicher said in a statement on Sunday. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
(RTTNews) - The pilots' union for American Airlines has directed its members to cease flight operations to Israel until they "can be reasonably assured of the region's safety and security". "It is not prudent or appropriate to knowingly put our flight crews and passengers in harm's way by maintaining flights into a war zone. Therefore, after careful consideration, I am directing all pilots to cease flight operations to Israel until we can be reasonably assured of the region's safety and security," the pilots' union President Ed Sicher said in a statement on Sunday.
|
2209.0
|
2023-10-08 00:00:00 UTC
|
Several airlines suspend Tel Aviv flights until safety conditions improve
|
AAL
|
https://www.nasdaq.com/articles/several-airlines-suspend-tel-aviv-flights-until-safety-conditions-improve
|
nan
|
nan
|
Adds Hainan, Cathay Pacific, Korean Air; paragraphs 6-9
Oct 9 (Reuters) - Several international air carriers have suspended flight services with Tel Aviv in light of the Hamas militant attack on Israel, saying they were waiting for safety conditions to improve before resuming.
Fighters from the Islamist group killed 700 Israelis and abducted dozens in Saturday's attacks, which were the deadliest such incursion since the Yom Kippur war 50 years ago, prompting Israel to retaliate by pounding the Palestinian enclave of Gaza.
On Sunday, U.S. air carriers United Airlines UAL.O, Delta Air Lines DAL.N and American Airlines AAL.O said they had suspended direct flights, as did Air France AIRF.PA.
The U.S. airlines normally run direct services from major cities such as New York, Chicago, Washington, DC and Miami.
In a statement, United said it had run two scheduled flights to the United States from Israel late on Saturday and early on Sunday but had suspended services "until conditions allow them to resume".
Delta representatives said flights "have been canceled into this week" while they monitor the situation to make necessary schedule changes.
Hainan Airlines 600221.SS, the only Chinese airline to fly between China and Israel, cancelled flights between Tel Aviv and Shanghai on Monday, citing the security situation in Israel.
It also operates flights between Beijing and Tel Aviv as well as the southern tech hub of Shenzhen and Tel Aviv. The airline said it would adjust future flight plans depending on the situation.
Cathay Pacific 0293.HK, which said it also cancelled its flight between Hong Kong and Tel Aviv on Tuesday, is to provide further updates about the next flight on Thursday.
Korean Air 003490.KS said it cancelled its Monday flight between the port city of Incheon and Tel Aviv and expects future flights to be irregular.
(Reporting by Douglas Gillison, Sophie Yu, Farah Master, Joyce Lee and Brenda Goh; Editing by Andrea Ricci and Clarence Fernandez)
((douglas.gillison@thomsonreuters.com; Reuters Messaging: @douglasgillison))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
On Sunday, U.S. air carriers United Airlines UAL.O, Delta Air Lines DAL.N and American Airlines AAL.O said they had suspended direct flights, as did Air France AIRF.PA. Fighters from the Islamist group killed 700 Israelis and abducted dozens in Saturday's attacks, which were the deadliest such incursion since the Yom Kippur war 50 years ago, prompting Israel to retaliate by pounding the Palestinian enclave of Gaza. The U.S. airlines normally run direct services from major cities such as New York, Chicago, Washington, DC and Miami.
|
On Sunday, U.S. air carriers United Airlines UAL.O, Delta Air Lines DAL.N and American Airlines AAL.O said they had suspended direct flights, as did Air France AIRF.PA. Adds Hainan, Cathay Pacific, Korean Air; paragraphs 6-9 Oct 9 (Reuters) - Several international air carriers have suspended flight services with Tel Aviv in light of the Hamas militant attack on Israel, saying they were waiting for safety conditions to improve before resuming. Korean Air 003490.KS said it cancelled its Monday flight between the port city of Incheon and Tel Aviv and expects future flights to be irregular.
|
On Sunday, U.S. air carriers United Airlines UAL.O, Delta Air Lines DAL.N and American Airlines AAL.O said they had suspended direct flights, as did Air France AIRF.PA. Adds Hainan, Cathay Pacific, Korean Air; paragraphs 6-9 Oct 9 (Reuters) - Several international air carriers have suspended flight services with Tel Aviv in light of the Hamas militant attack on Israel, saying they were waiting for safety conditions to improve before resuming. Hainan Airlines 600221.SS, the only Chinese airline to fly between China and Israel, cancelled flights between Tel Aviv and Shanghai on Monday, citing the security situation in Israel.
|
On Sunday, U.S. air carriers United Airlines UAL.O, Delta Air Lines DAL.N and American Airlines AAL.O said they had suspended direct flights, as did Air France AIRF.PA. Adds Hainan, Cathay Pacific, Korean Air; paragraphs 6-9 Oct 9 (Reuters) - Several international air carriers have suspended flight services with Tel Aviv in light of the Hamas militant attack on Israel, saying they were waiting for safety conditions to improve before resuming. Korean Air 003490.KS said it cancelled its Monday flight between the port city of Incheon and Tel Aviv and expects future flights to be irregular.
|
2210.0
|
2023-10-06 00:00:00 UTC
|
American Airlines (AAL) Stock Drops Despite Market Gains: Important Facts to Note
|
AAL
|
https://www.nasdaq.com/articles/american-airlines-aal-stock-drops-despite-market-gains%3A-important-facts-to-note
|
nan
|
nan
|
In the latest trading session, American Airlines (AAL) closed at $12.76, marking a -0.7% move from the previous day. This move lagged the S&P 500's daily gain of 1.18%. Elsewhere, the Dow gained 0.87%, while the tech-heavy Nasdaq added 1.6%.
Shares of the world's largest airline have depreciated by 8.21% over the course of the past month, underperforming the Transportation sector's loss of 5.84% and the S&P 500's loss of 5.17%.
The investment community will be closely monitoring the performance of American Airlines in its forthcoming earnings report. The company is scheduled to release its earnings on October 19, 2023. The company is expected to report EPS of $0.40, down 42.03% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $13.53 billion, up 0.49% from the prior-year quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $2.62 per share and a revenue of $53.04 billion, representing changes of +424% and +8.32%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for American Airlines. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 15.06% lower. Right now, American Airlines possesses a Zacks Rank of #3 (Hold).
Investors should also note American Airlines's current valuation metrics, including its Forward P/E ratio of 4.9. This indicates a discount in contrast to its industry's Forward P/E of 7.39.
It's also important to note that AAL currently trades at a PEG ratio of 0.09. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. By the end of yesterday's trading, the Transportation - Airline industry had an average PEG ratio of 0.3.
The Transportation - Airline industry is part of the Transportation sector. At present, this industry carries a Zacks Industry Rank of 222, placing it within the bottom 12% of over 250 industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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 a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ 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.
|
In the latest trading session, American Airlines (AAL) closed at $12.76, marking a -0.7% move from the previous day. It's also important to note that AAL currently trades at a PEG ratio of 0.09. Click to get this free report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here.
|
In the latest trading session, American Airlines (AAL) closed at $12.76, marking a -0.7% move from the previous day. Click to get this free report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. It's also important to note that AAL currently trades at a PEG ratio of 0.09.
|
In the latest trading session, American Airlines (AAL) closed at $12.76, marking a -0.7% move from the previous day. It's also important to note that AAL currently trades at a PEG ratio of 0.09. Click to get this free report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here.
|
In the latest trading session, American Airlines (AAL) closed at $12.76, marking a -0.7% move from the previous day. It's also important to note that AAL currently trades at a PEG ratio of 0.09. Click to get this free report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here.
|
2211.0
|
2023-10-06 00:00:00 UTC
|
Sabre (SABR), LATAM Partner to Integrate NDC Content Into GDC
|
AAL
|
https://www.nasdaq.com/articles/sabre-sabr-latam-partner-to-integrate-ndc-content-into-gdc
|
nan
|
nan
|
Sabre Corporation SABR has entered into a new distribution agreement with the largest carrier in Latin America, LATAM Airlines Group. Per the latest agreement, LATAM’s New Distribution Capability (“NDC”) Content will be integrated into Sabre’s Global Distribution System (“GDS”), with a probable rollout planned for the first half of 2024.
SABR’s GDS is a NDC-enabled consistent end-to-end workflow solution, which 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 LATAM’s NDC and EDIFACT offers. The companies will leverage SABR's Offer and Order APIs and solutions like Sabre Red 360 and Sabre GetThere.
In addition to the improved access to LATAM’s offers, the travel agents will also be able to compare and shop these while benefiting from increased choice and transparency. This will be executed across Latin American Region and Intercontinental destinations like the United States, Europe, Australasia and the Caribbean.
Sabre Corporation Price and Consensus
Sabre Corporation price-consensus-chart | Sabre Corporation Quote
LATAM is set to become the latest addition to a group of 15 airlines collaborating with Sabre to offer its NDC content in the market. This list of airlines includes 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 Mar 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 into 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 has reported that in second-quarter 2023, the share of its Global Distribution System industry volumes has 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 carries a Zacks Rank #2 (Buy), while American Airlines and United Airlines carry a Zacks Rank #3 (Hold) each. Shares of SABR have plunged 37.9% year to date, while shares of AAL and UAL have gained 1% and 9.6%, respectively.
Another Stock to Consider
A top-ranked stock from the broader technology sector, worth considering, is NVIDIA NVDA, sporting 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 NVIDIA's third-quarter fiscal 2024 earnings has been revised upward by 2 cents to $3.34 per share in the past seven days. For fiscal 2024, earnings estimates have increased by 21 cents to $10.67 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 soared 205.9% year to date.
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 a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ 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
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. Shares of SABR have plunged 37.9% year to date, while shares of AAL and UAL have gained 1% and 9.6%, 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.
|
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. Shares of SABR have plunged 37.9% year to date, while shares of AAL and UAL have gained 1% and 9.6%, respectively.
|
2212.0
|
2023-10-05 00:00:00 UTC
|
Amplats sees no immediate rebound in low platinum metals price
|
AAL
|
https://www.nasdaq.com/articles/amplats-sees-no-immediate-rebound-in-low-platinum-metals-price
|
nan
|
nan
|
By Felix Njini
JOHANNESBURG, Oct 5 (Reuters) - Anglo American Platinum's AMSJ.J CEO said he expected the low metal prices companies in South Africa are currently grappling with to persist, and he was aligning the business for the possibility that they would not rise for some time.
Prices for platinum-group metals, which have declined rapidly over recent months, could remain depressed, Craig Miller, CEO of the world's biggest platinum miner by value, told Reuters.
"I really hope I am wrong but the way I am setting up the business is that those prices are in place for a bit of time," Miller said in an interview.
The Anglo American AAL.L unit and its South African peers, including Sibanye Stillwater SSWJ.J and Impala Platinum, IMPJ.J had been raking in windfall profits as prices for the metals, which are used in catalysts that curb toxic vehicle emissions soared.
Rhodium, which is extracted from platinum, hit almost $30,000 an ounce in 2021 and palladium soared to more than $3,400 an ounce after Russia's invasion of Ukraine last year.
Palladium fell 1.4% on Thursday to a five-year low of about $1,151 an ounce. Platinum, of which South Africa is the world's top supplier, hovered around $861 an ounce.
The rapid plunge in prices is threatening jobs in South Africa, which has some of the world's deepest, ageing and costly platinum mines.
"We need to make sure that our business is set up for that possibility where prices are lower for some period of time. At the same we need to set up for a turnaround when prices change," Miller said.
The de-stocking of metal inventories that built up in the early days of Russia's invasion of Ukraine could be contributing to depressed prices, said Miller, who took over as CEO on Oct. 1.
But the bigger hit is coming from lower-than-expected economic growth in China, the CEO added.
The lower prices are hitting earnings for producers that were returning bumper dividends to investors just a year ago.
(Reporting by Felix Njini; Editing by Kirsten Donovan and Sharon Singleton)
((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.
|
The Anglo American AAL.L unit and its South African peers, including Sibanye Stillwater SSWJ.J and Impala Platinum, IMPJ.J had been raking in windfall profits as prices for the metals, which are used in catalysts that curb toxic vehicle emissions soared. By Felix Njini JOHANNESBURG, Oct 5 (Reuters) - Anglo American Platinum's AMSJ.J CEO said he expected the low metal prices companies in South Africa are currently grappling with to persist, and he was aligning the business for the possibility that they would not rise for some time. Prices for platinum-group metals, which have declined rapidly over recent months, could remain depressed, Craig Miller, CEO of the world's biggest platinum miner by value, told Reuters.
|
The Anglo American AAL.L unit and its South African peers, including Sibanye Stillwater SSWJ.J and Impala Platinum, IMPJ.J had been raking in windfall profits as prices for the metals, which are used in catalysts that curb toxic vehicle emissions soared. By Felix Njini JOHANNESBURG, Oct 5 (Reuters) - Anglo American Platinum's AMSJ.J CEO said he expected the low metal prices companies in South Africa are currently grappling with to persist, and he was aligning the business for the possibility that they would not rise for some time. Prices for platinum-group metals, which have declined rapidly over recent months, could remain depressed, Craig Miller, CEO of the world's biggest platinum miner by value, told Reuters.
|
The Anglo American AAL.L unit and its South African peers, including Sibanye Stillwater SSWJ.J and Impala Platinum, IMPJ.J had been raking in windfall profits as prices for the metals, which are used in catalysts that curb toxic vehicle emissions soared. By Felix Njini JOHANNESBURG, Oct 5 (Reuters) - Anglo American Platinum's AMSJ.J CEO said he expected the low metal prices companies in South Africa are currently grappling with to persist, and he was aligning the business for the possibility that they would not rise for some time. Prices for platinum-group metals, which have declined rapidly over recent months, could remain depressed, Craig Miller, CEO of the world's biggest platinum miner by value, told Reuters.
|
The Anglo American AAL.L unit and its South African peers, including Sibanye Stillwater SSWJ.J and Impala Platinum, IMPJ.J had been raking in windfall profits as prices for the metals, which are used in catalysts that curb toxic vehicle emissions soared. By Felix Njini JOHANNESBURG, Oct 5 (Reuters) - Anglo American Platinum's AMSJ.J CEO said he expected the low metal prices companies in South Africa are currently grappling with to persist, and he was aligning the business for the possibility that they would not rise for some time. Rhodium, which is extracted from platinum, hit almost $30,000 an ounce in 2021 and palladium soared to more than $3,400 an ounce after Russia's invasion of Ukraine last year.
|
2213.0
|
2023-10-05 00:00:00 UTC
|
Why the Market Dipped But (AAL) Gained Today
|
AAL
|
https://www.nasdaq.com/articles/why-the-market-dipped-but-aal-gained-today
|
nan
|
nan
|
In the latest market close, American Airlines (AAL) reached $12.85, with a +0.94% movement compared to the previous day. The stock outperformed the S&P 500, which registered a daily loss of 0.13%. At the same time, the Dow lost 0.03%, and the tech-heavy Nasdaq lost 0.12%.
Prior to today's trading, shares of the world's largest airline had lost 11.17% over the past month. This has lagged the Transportation sector's loss of 7.23% and the S&P 500's loss of 5.53% in that time.
Analysts and investors alike will be keeping a close eye on the performance of American Airlines in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.40, marking a 42.03% fall compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $13.55 billion, showing a 0.68% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates project earnings of $2.62 per share and a revenue of $53.11 billion, demonstrating changes of +424% and +8.46%, respectively, from the preceding year.
Any recent changes to analyst estimates for American Airlines should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 17.52% lower within the past month. As of now, American Airlines holds a Zacks Rank of #3 (Hold).
In the context of valuation, American Airlines is at present trading with a Forward P/E ratio of 4.85. This indicates a discount in contrast to its industry's Forward P/E of 7.41.
It's also important to note that AAL currently trades at a PEG ratio of 0.09. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Transportation - Airline stocks are, on average, holding a PEG ratio of 0.3 based on yesterday's closing prices.
The Transportation - Airline industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 224, which puts it in the bottom 12% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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.
|
In the latest market close, American Airlines (AAL) reached $12.85, with a +0.94% movement compared to the previous day. It's also important to note that AAL currently trades at a PEG ratio of 0.09. Click to get this free report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here.
|
Click to get this free report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. In the latest market close, American Airlines (AAL) reached $12.85, with a +0.94% movement compared to the previous day. It's also important to note that AAL currently trades at a PEG ratio of 0.09.
|
In the latest market close, American Airlines (AAL) reached $12.85, with a +0.94% movement compared to the previous day. It's also important to note that AAL currently trades at a PEG ratio of 0.09. Click to get this free report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here.
|
In the latest market close, American Airlines (AAL) reached $12.85, with a +0.94% movement compared to the previous day. It's also important to note that AAL currently trades at a PEG ratio of 0.09. Click to get this free report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here.
|
2214.0
|
2023-10-05 00:00:00 UTC
|
AAL November 24th Options Begin Trading
|
AAL
|
https://www.nasdaq.com/articles/aal-november-24th-options-begin-trading
|
nan
|
nan
|
Investors in American Airlines Group Inc (Symbol: AAL) saw new options become available today, for the November 24th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new November 24th 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 47 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 $11.53 (before broker commissions). To an investor already interested in purchasing shares of AAL, that could represent an attractive alternative to paying $12.82/share today.
Because the $12.00 strike represents an approximate 6% 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 3.92% return on the cash commitment, or 28.57% 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 $13.50 strike price has a current bid of 56 cents. If an investor was to purchase shares of AAL stock at the current price level of $12.82/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $13.50. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 9.67% if the stock gets called away at the November 24th 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 $13.50 strike highlighted in red:
Considering the fact that the $13.50 strike represents an approximate 5% 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 4.37% boost of extra return to the investor, or 31.86% 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 $12.82) 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:
VIEW Stock Predictions
VIRT Videos
Funds Holding GFOR
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 $13.50 strike highlighted in red: Considering the fact that the $13.50 strike represents an approximate 5% 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 become available today, for the November 24th expiration.
|
Below is a chart showing AAL's trailing twelve month trading history, with the $13.50 strike highlighted in red: Considering the fact that the $13.50 strike represents an approximate 5% 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 become available today, for the November 24th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new November 24th 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 $13.50 strike highlighted in red: Considering the fact that the $13.50 strike represents an approximate 5% 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 become available today, for the November 24th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new November 24th 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 $13.50 strike highlighted in red: Considering the fact that the $13.50 strike represents an approximate 5% 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 become available today, for the November 24th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new November 24th contracts and identified one put and one call contract of particular interest.
|
2215.0
|
2023-10-05 00:00:00 UTC
|
Stock Market News for Oct 5, 2023
|
AAL
|
https://www.nasdaq.com/articles/stock-market-news-for-oct-5-2023
|
nan
|
nan
|
Wall Street closed higher on Wednesday, driven by tech and discretionary stocks. Stocks rebounded on weaker-than-expected jobs numbers. All of the three major stock indexes ended in the green.
How Did the Benchmarks Perform?
The Dow Jones Industrial Average (DJI) advanced 0.4% or 127.17 points to close at 33,129.55. Twenty-two components of the 30-stock index ended in positive territory, while eight ended in negative.
The tech-heavy Nasdaq Composite added 176.54 points or 1.4% to close at 13,236.01.
The S&P 500 gained 34.3 points, or 0.8%%, to close at 4,263.75. Ten of the 11 broad sectors of the benchmark index closed in the red, while one ended in the green. The Consumer Discretionary Select Sector SPDR (XLY), the Technology Select Sector SPDR (XLK) and the Materials Select Sector SPDR (XLB) rose 2%, 1.3% and 1.2%, respectively, while the Energy Select Sector SPDR (XLE) fell 3.1%.
The fear-gauge CBOE Volatility Index (VIX) decreased 6.1% to 18.58. A total of 10.5 billion shares were traded on Wednesday, lower than the last 20-session average of 10.6 billion. Advancers outnumbered decliners on the NYSE by a 1.45-to-1 ratio. On the Nasdaq, advancing issues led decliners by 1.30-to-1.
ADP Private Payrolls Report Drives the Market
Automatic Data Processing’s ADP National Employment Report for September was released on Wednesday. The report showed private payrolls increasing by 89,000 jobs in September, the lowest since January 2021. In August, the jobs count had grown by 180,000.
The numbers for September, which have hit almost a 3-year low, were way below expectations and have been cheered by investors who see this as a sign of the labor market loosening. A tight labor market has kept market participants on the edge throughout the period that the Fed has been raising interest rates because a robust jobs scene has continued to deter the central bank from going slow in policy tightening.
However, the more closely watched jobs report will be released by the labor department on Friday, and investors eagerly await its findings. In the meantime, ADP’s report provided much-required respite to the market, which was reeling under recession fears in recent weeks.
Consequently, shares of Tesla, Inc. TSLA and American Airlines Group Inc. AAL jumped 5.9% and 3.6%, respectively. Both carry a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Oil Prices Plunge on Weak Demand for Gasoline
On Wednesday, the U.S. Energy Information Administration reported that finished motor gasoline supplied had fallen to 8 million bpd, its lowest in 2023. The post-tropical storm Ophelia and torrential rains are being seen as major reasons behind this drastic fall in demand.
On cue, oil prices plummeted in the session, with Brent crude declining $5.11, or 5.6%, to $85.81/barrel, while the WTI crude fell $5.01, or 5.6%, to $84.22. The S&P Energy SPDR slid more than 3%, bringing energy stocks down.
Economic Data
The Institute for Supply Management (“ISM”) reported that the ISM Services Index for September had come in at 53.6. The number for August was unrevised at 54.5.
The U.S. Census Bureau announced that factory orders had increased 1.2% in August against a consensus of a 0.2% rise. The July number remained unrevised at a decrease of 2.1%.
Per a government report, for the week ended Sep 29, U.S. commercial crude oil inventories (excluding those in the Strategic Petroleum Reserve) decreased by 2.2 million barrels from the previous week.
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
Automatic Data Processing, Inc. (ADP) : Free Stock Analysis Report
Tesla, Inc. (TSLA) : 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.
|
Consequently, shares of Tesla, Inc. TSLA and American Airlines Group Inc. AAL jumped 5.9% and 3.6%, respectively. Click to get this free report Automatic Data Processing, Inc. (ADP) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. However, the more closely watched jobs report will be released by the labor department on Friday, and investors eagerly await its findings.
|
Consequently, shares of Tesla, Inc. TSLA and American Airlines Group Inc. AAL jumped 5.9% and 3.6%, respectively. Click to get this free report Automatic Data Processing, Inc. (ADP) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. ADP Private Payrolls Report Drives the Market Automatic Data Processing’s ADP National Employment Report for September was released on Wednesday.
|
Click to get this free report Automatic Data Processing, Inc. (ADP) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. Consequently, shares of Tesla, Inc. TSLA and American Airlines Group Inc. AAL jumped 5.9% and 3.6%, respectively. The Consumer Discretionary Select Sector SPDR (XLY), the Technology Select Sector SPDR (XLK) and the Materials Select Sector SPDR (XLB) rose 2%, 1.3% and 1.2%, respectively, while the Energy Select Sector SPDR (XLE) fell 3.1%.
|
Consequently, shares of Tesla, Inc. TSLA and American Airlines Group Inc. AAL jumped 5.9% and 3.6%, respectively. Click to get this free report Automatic Data Processing, Inc. (ADP) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. ADP Private Payrolls Report Drives the Market Automatic Data Processing’s ADP National Employment Report for September was released on Wednesday.
|
2216.0
|
2023-10-05 00:00:00 UTC
|
US Senator wants United, American CEOs to answer questions on fees, complaints
|
AAL
|
https://www.nasdaq.com/articles/us-senator-wants-united-american-ceos-to-answer-questions-on-fees-complaints
|
nan
|
nan
|
By David Shepardson
WASHINGTON, Oct 5 (Reuters) - The Senate's No. 2 Democrat asked the CEOs of United Airlines and American Airlines AAL.O to answer questions on rising passenger complaints and higher ticket prices and fees.
Senator Dick Durbin said on Thursday he was taking a closer look at legislation proposed in January to require refunds for delayed flights and transportation on rival carriers, and prohibiting unnecessary airline fees as part of sweeping new consumer protections. Durbin's queries come as major airlines have clashed with him over credit card fee legislation as well.
Durbin, who chairs the Judiciary Committee, asked both airlines in a letter how they are "ensuring that this profit is not earned at the expense of a fair, pleasant, and affordable travel experience for consumers?"
Durbin also sought answers on how airlines are ensuring "consumers are not saddled with excessive or unnecessary fees."
The Biden administration earlier this year asked Congress to mandate airlines to pay cash compensation for delays of three hours or more when carriers are responsible, and provide new requirements for transparency over fees such as for baggage when booking tickets.
Congress has so far largely ignored those requests. A House aviation policy bill approved in July would bar airlines from charging family seating fees but would not set minimum seat sizes or impose new rules for compensation for delays.
Durbin's letter also went to Nick Calio, who heads Airlines for America, an industry trade group. United, American and the trade group did not comment.
Major airlines have heavily lobbied Congress in recent months to reject legislation co-sponsored by Durbin they say threatens their ability to offering rewards credit cards that give consumers frequent flyer miles for making transactions.
Durbin says the bill would address "outrageous" fees charged by Visa V.N and Mastercard MA.N, and boost competition by directing the Federal Reserve to ensure that large credit card-issuing banks offer a choice of at least two networks over which an electronic credit transaction may be processed.
The bill would not apply to American Express AXP.N. Delta Air DAL.N, which has a frequent flyer credit card with American Express, did not receive a letter from Durbin.
Airline unions oppose the bill they say "would provide a massive competitive advantage to Delta."
(Reporting by David Shepardson; Editing by Chris Reese and Tom Hogue)
((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.
|
2 Democrat asked the CEOs of United Airlines and American Airlines AAL.O to answer questions on rising passenger complaints and higher ticket prices and fees. Senator Dick Durbin said on Thursday he was taking a closer look at legislation proposed in January to require refunds for delayed flights and transportation on rival carriers, and prohibiting unnecessary airline fees as part of sweeping new consumer protections. The Biden administration earlier this year asked Congress to mandate airlines to pay cash compensation for delays of three hours or more when carriers are responsible, and provide new requirements for transparency over fees such as for baggage when booking tickets.
|
2 Democrat asked the CEOs of United Airlines and American Airlines AAL.O to answer questions on rising passenger complaints and higher ticket prices and fees. Durbin's queries come as major airlines have clashed with him over credit card fee legislation as well. Major airlines have heavily lobbied Congress in recent months to reject legislation co-sponsored by Durbin they say threatens their ability to offering rewards credit cards that give consumers frequent flyer miles for making transactions.
|
2 Democrat asked the CEOs of United Airlines and American Airlines AAL.O to answer questions on rising passenger complaints and higher ticket prices and fees. Senator Dick Durbin said on Thursday he was taking a closer look at legislation proposed in January to require refunds for delayed flights and transportation on rival carriers, and prohibiting unnecessary airline fees as part of sweeping new consumer protections. Major airlines have heavily lobbied Congress in recent months to reject legislation co-sponsored by Durbin they say threatens their ability to offering rewards credit cards that give consumers frequent flyer miles for making transactions.
|
2 Democrat asked the CEOs of United Airlines and American Airlines AAL.O to answer questions on rising passenger complaints and higher ticket prices and fees. Durbin also sought answers on how airlines are ensuring "consumers are not saddled with excessive or unnecessary fees." United, American and the trade group did not comment.
|
2217.0
|
2023-10-05 00:00:00 UTC
|
US carriers accelerate to bigger planes to overcome operating constraints
|
AAL
|
https://www.nasdaq.com/articles/us-carriers-accelerate-to-bigger-planes-to-overcome-operating-constraints
|
nan
|
nan
|
By Rajesh Kumar Singh
CHICAGO, Oct 5 (Reuters) - United Airlines' UAL.O plan to navigate the operating constraints dogging U.S. carriers is simple – bigger planes.
In announcing plans on Tuesday to order 110 aircraft from Boeing BA.N and Airbus AIR.PA, Chicago-based United cited the shortage of air-traffic controllers, congested airspace and limitations on runways and airport gates that have forced many carriers to cut the number of flights they offer.
With United expecting those problems to worsen by the end of the decade as demand surges, it is buying bigger planes with more seats - a strategy rival airlines have embarked upon as well.
"The country is just not building a lot more runways and that's just going to cause us to need to upgauge our aircraft to respond to growing demand," United's Chief Commercial Officer Andrew Nocella said Tuesday, using an industry term for a shift to larger planes. He added that travel demand cannot be met without bigger planes.
The company aims to increase average seats per departure in North America by more than 40% in 2027 from 2019.
United's latest order includes 50 Boeing 787-9 planes that it plans to operate on many routes currently being serviced by 767s. That version of 787 holds up to 129 more seats than the 767s in its fleet.
Similarly, the 60 Airbus A321neos that United is buying can accommodate up to 30% more seats than some of Boeing's 757s that it has been flying.
BIGGER IS BETTER
United is not alone in this bigger-is-better approach.
Data from industry body Airlines for America (A4A) shows larger planes holding more than 120 seats now account for about 68% of domestic U.S. scheduled flights compared with 58% before the pandemic.
As a result, carriers are offering 14% more seats per flight in the current quarter compared with the fourth quarter of 2019, before the pandemic, according to data from A4A. That is despite a 9% reduction in scheduled flights.
The shift towards larger planes comes at a time when airlines are grappling with a shortage of air traffic controllers in the United States, as many retired during the pandemic and training for new ones stopped.
JetBlue JBLU.O CEO Robin Hayes last month said it would take five years for staffing levels to catch up even if the Federal Aviation Administration doubled controller hiring. As a result, the airline expects to operate fewer flights in the short to medium term and has warned of a hit to its third-quarter revenue.
Those challenges have compelled United to cut daily flights from Newark - its largest global gateway. Frontier Airlines ULCC.O also has been forced to rework its network because of the controller issues.
An industry-wide pilot shortage, worsened by pandemic layoffs and retirements, has also accelerated the trend towards larger planes, said Addison Schonland, partner at consulting firm AirInsight.
Flying bigger planes is more profitable for airlines even if that means fewer flight options for travelers. Carriers can sell more seats on each flight and operate with fewer planes and staff.
United said its larger aircraft would drive up the average seats per departure, and translate into lower per-seat costs.
Schonland said airlines can increase their seat capacity by 10% with just a 2%-3% increase in fuel burn. The newer generation planes are also far more fuel-efficient, which should reduce carbon emissions.
Higher revenue potential and greater cost efficiency are reasons why American and Delta and United have all now embraced Airbus' A321 and are looking to retire Boeing's 757s, he said.
"All the airlines are going in that direction," Schonland said.
(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.
|
By Rajesh Kumar Singh CHICAGO, Oct 5 (Reuters) - United Airlines' UAL.O plan to navigate the operating constraints dogging U.S. carriers is simple – bigger planes. In announcing plans on Tuesday to order 110 aircraft from Boeing BA.N and Airbus AIR.PA, Chicago-based United cited the shortage of air-traffic controllers, congested airspace and limitations on runways and airport gates that have forced many carriers to cut the number of flights they offer. "The country is just not building a lot more runways and that's just going to cause us to need to upgauge our aircraft to respond to growing demand," United's Chief Commercial Officer Andrew Nocella said Tuesday, using an industry term for a shift to larger planes.
|
By Rajesh Kumar Singh CHICAGO, Oct 5 (Reuters) - United Airlines' UAL.O plan to navigate the operating constraints dogging U.S. carriers is simple – bigger planes. In announcing plans on Tuesday to order 110 aircraft from Boeing BA.N and Airbus AIR.PA, Chicago-based United cited the shortage of air-traffic controllers, congested airspace and limitations on runways and airport gates that have forced many carriers to cut the number of flights they offer. Data from industry body Airlines for America (A4A) shows larger planes holding more than 120 seats now account for about 68% of domestic U.S. scheduled flights compared with 58% before the pandemic.
|
By Rajesh Kumar Singh CHICAGO, Oct 5 (Reuters) - United Airlines' UAL.O plan to navigate the operating constraints dogging U.S. carriers is simple – bigger planes. With United expecting those problems to worsen by the end of the decade as demand surges, it is buying bigger planes with more seats - a strategy rival airlines have embarked upon as well. Data from industry body Airlines for America (A4A) shows larger planes holding more than 120 seats now account for about 68% of domestic U.S. scheduled flights compared with 58% before the pandemic.
|
In announcing plans on Tuesday to order 110 aircraft from Boeing BA.N and Airbus AIR.PA, Chicago-based United cited the shortage of air-traffic controllers, congested airspace and limitations on runways and airport gates that have forced many carriers to cut the number of flights they offer. Data from industry body Airlines for America (A4A) shows larger planes holding more than 120 seats now account for about 68% of domestic U.S. scheduled flights compared with 58% before the pandemic. Carriers can sell more seats on each flight and operate with fewer planes and staff.
|
2218.0
|
2023-10-05 00:00:00 UTC
|
Anglo CEO says miners must make "tough decisions" to remain profitable
|
AAL
|
https://www.nasdaq.com/articles/anglo-ceo-says-miners-must-make-tough-decisions-to-remain-profitable
|
nan
|
nan
|
Oct 5 (Reuters) - Anglo American AAL.L CEO Duncan Wanblad said on Thursday mining companies have to confront tough decisions such as cutting costs as weak metal prices hit earnings, a day after the group announced plans to shed an undisclosed number of jobs.
The industry, including South Africa, where Anglo owns iron ore, platinum and diamond mines, is going through "challenging times", Wanblad said in a virtual address to a South African mining conference.
Anglo said on Wednesday it is cutting some head office jobs across its global operations.
"We know that securing long-term competitive advantage and establishing a more resilient platform involves tough choices along the way," Wanblad said.
Weaker metals prices and concerns of a global economic slowdown this year are compounding an electricity and freight rail logistics crisis in South Africa, the continent's most advanced economy and a leading global mining jurisdiction.
On Wednesday, Sibanye Stillwater SSWJ.J CEO Neal Froneman said job cuts in the platinum sector had become "inevitable" as prices of the precious metals fall.
Sibanye, South Africa's biggest mining sector employer, may be forced to close some loss-making shafts, Froneman said.
(Reporting by Nelson Banya and Felix Njini)
((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.
|
Oct 5 (Reuters) - Anglo American AAL.L CEO Duncan Wanblad said on Thursday mining companies have to confront tough decisions such as cutting costs as weak metal prices hit earnings, a day after the group announced plans to shed an undisclosed number of jobs. On Wednesday, Sibanye Stillwater SSWJ.J CEO Neal Froneman said job cuts in the platinum sector had become "inevitable" as prices of the precious metals fall. Sibanye, South Africa's biggest mining sector employer, may be forced to close some loss-making shafts, Froneman said.
|
Oct 5 (Reuters) - Anglo American AAL.L CEO Duncan Wanblad said on Thursday mining companies have to confront tough decisions such as cutting costs as weak metal prices hit earnings, a day after the group announced plans to shed an undisclosed number of jobs. The industry, including South Africa, where Anglo owns iron ore, platinum and diamond mines, is going through "challenging times", Wanblad said in a virtual address to a South African mining conference. On Wednesday, Sibanye Stillwater SSWJ.J CEO Neal Froneman said job cuts in the platinum sector had become "inevitable" as prices of the precious metals fall.
|
Oct 5 (Reuters) - Anglo American AAL.L CEO Duncan Wanblad said on Thursday mining companies have to confront tough decisions such as cutting costs as weak metal prices hit earnings, a day after the group announced plans to shed an undisclosed number of jobs. The industry, including South Africa, where Anglo owns iron ore, platinum and diamond mines, is going through "challenging times", Wanblad said in a virtual address to a South African mining conference. Weaker metals prices and concerns of a global economic slowdown this year are compounding an electricity and freight rail logistics crisis in South Africa, the continent's most advanced economy and a leading global mining jurisdiction.
|
Oct 5 (Reuters) - Anglo American AAL.L CEO Duncan Wanblad said on Thursday mining companies have to confront tough decisions such as cutting costs as weak metal prices hit earnings, a day after the group announced plans to shed an undisclosed number of jobs. The industry, including South Africa, where Anglo owns iron ore, platinum and diamond mines, is going through "challenging times", Wanblad said in a virtual address to a South African mining conference. Anglo said on Wednesday it is cutting some head office jobs across its global operations.
|
2219.0
|
2023-10-04 00:00:00 UTC
|
Stocks Rebound as Bond Yields Stabilize
|
AAL
|
https://www.nasdaq.com/articles/stocks-rebound-as-bond-yields-stabilize
|
nan
|
nan
|
What you need to know…
The S&P 500 Index ($SPX) (SPY) on Wednesday closed up +0.81%, the Dow Jones Industrials Index ($DOWI) (DIA) closed up +0.39%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed up +1.45%.
Stocks on Wednesday closed moderately higher as lower bond yields temporarily eased interest rate concerns and supported gains in stocks. T-note yields fell after the monthly ADP employment report showed fewer jobs than expected, a dovish factor for Fed policy. Stock indexes fell back from their best levels as energy stocks declined after crude prices tumbled more than -5% to a 5-week low. Also, the stronger-than-expected Sep ISM services and Aug factory orders reports lifted T-note yields from their lowest levels and weighed on stocks.
The U.S. Sep ADP employment change rose +89,000, weaker than expectations of +150,000 and the smallest increase in over 2-1/2 years.
The U.S. Sep ISM services index fell -0.9 to 53.6, stronger than expectations of 53.5.
U.S. Aug factory orders rose +1.2% m/m, stronger than expectations of +0.3% m/m.
Weekly U.S. MBA mortgage applications fell -6.0% in the week ended Sep 29 to its lowest level since 1996. The home purchase sub-index fell -5.7% to 136.6, the lowest since 1995. The refinancing sub-index fell -6.6% w/w. The 30-year fixed mortgage rate rose +12 bp to 7.53%, the highest in almost 23 years.
The markets are discounting a 24% 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 lower. The 10-year T-note yield fell back from a new 16-year high of 4.880% and finished down -6.3 bp at 4.733%. The 10-year German bund yield fell back from a 12-year high of 3.026% and finished down -4.9 bp at 2.919%. The 10-year UK gilt yield fell back from a 1-1/2 month high of 4.666% and finished down -1.8 at 4.579%.
ECB President Lagarde said future ECB decisions "will ensure that the interest rates will be set at sufficiently restrictive levels for as long as necessary."
Eurozone Aug retail sales fell -1.2% m/m, weaker than expectations of -0.5% m/m and the biggest decline in 8 months.
Eurozone Aug PPI fell a record -11.5% y/y from a -7.6% y/y decline in July, right on expectations.
The Eurozone Sep S&P composite PMI was revised upward by +0.1 to 47.2 from the initially reported 47.1.
Overseas stock markets on Wednesday settled mixed. The Euro Stoxx 50 closed up +0.10%. China’s Shanghai Composite Index was closed for the Golden Week holidays. Japan’s Nikkei 225 today closed down -2.28%.
Today’s stock movers…
Alphabet (GOOGL) closed up more than +2% after unveiling new Pixel 8 and Pixel 8 pro Phones and a new Pixel Watch. The company also said it will release a version of its virtual assistant that is powered by its Bard artificial intelligence technology.
Airline stocks rallied as crude prices plunged more than -5% to a 3-week low, which lowers fuel costs and may boost airline profits. American Airlines Group (AAL) closed up more than +3%. Also, Delta Air Lines (DAL) closed up more than +2%, and Southwest Airlines (LUV) and United Airlines (UAL) closed up more than +1%.
Cruise line stocks moved higher after Shore Capital Stockbrokers upgraded Carnival to hold from sell. As a result, Norwegian Cruise Line Holdings (NCLH) closed up more than +3%, and Carnival (CCL) and Royal Caribbean Cruises Ltd (RCL) closed up more than +2%.
Palantir Technologies (PLTR) closed up more than +5% as the company has emerged as the top pick for a contract to overhaul the UK’s National Health Service.
Matson Inc (MATX) closed up more than +2% after Wolfe Research upgraded the stock to outperform from peer perform with a price target of $113.
Hub Group (HUBG) closed up more than +2% after Wolfe Research upgraded the stock to outperform from peer perform with a price target of $98.
Molson Coors Beverage (TAP) closed up more than +1% after announcing a new $2 billion stock buyback plan.
Energy companies and energy service stocks sold off Wednesday as the price of WTI crude plunged more than -5% to a 5-week low. As a result, Devon Energy (DVN) closed down more than -5% to lead losers in the S&P 500, and Baker Hughes (BKR) closed down more than -4% to lead losers in the Nasdaq 100. Also, Phillips 66 (PSX), Haliburton (HAL), Marathon Oil (MRO), and Schlumberger (SLB) closed down more than -4%. In addition, Exxon Mobil (XOM), Occidental Petroleum (OXY), Valero Energy (VLO), Marathon Petroleum (MPC), and Diamondback Energy (FANG) closed down more than -3%. Finally, Chevron (CVX) closed down more than -2% to lead the Dow Jones Industrials losers.
A10 Networks (ATEN) closed down more than -27% after forecasting preliminary Q3 revenue between $56.5 million-$58.5 million, well below the consensus of $74.5 million.
Cal-Maine Foods (CALM) closed down more than -7% after reporting Q1 net sales of $459.3 million, weaker than the consensus of $479.5 million.
Across the markets…
December 10-year T-notes (ZNZ23) Wednesday closed up +15 ticks. The 10-year T-note yield fell -6.3 bp to 4.733%. Dec T-notes Wednesday recovered from a new 16-year nearest-futures low and moved higher, and the 10-year T-note yield fell back from a 16-year high of 4.880% and moved lower. Short covering emerged in T-notes Wednesday after the Sep ADP employment report rose less than expected, which is a sign of a slowing labor market that is dovish for Fed policy. T-notes also found support from Wednesday’s -5% plunge in crude prices that lowered inflation expectations. T-notes fell back from their best levels on the stronger-than-expected Sep ISM services and Aug factory orders reports.
More Stock Market News from Barchart
Acuity Brands Reports Q4 2023 Earnings Surprise: Time to Buy?
Crude Prices Sink as U.S. Gasoline Demand Slumps
Nat-Gas Prices Push Higher as Cool U.S. Temps Expected Mid-Month
3 EV Stocks Analysts Like Better than Tesla
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) closed up more than +3%. Also, the stronger-than-expected Sep ISM services and Aug factory orders reports lifted T-note yields from their lowest levels and weighed on stocks. Short covering emerged in T-notes Wednesday after the Sep ADP employment report rose less than expected, which is a sign of a slowing labor market that is dovish for Fed policy.
|
American Airlines Group (AAL) closed up more than +3%. Stock indexes fell back from their best levels as energy stocks declined after crude prices tumbled more than -5% to a 5-week low. Also, the stronger-than-expected Sep ISM services and Aug factory orders reports lifted T-note yields from their lowest levels and weighed on stocks.
|
American Airlines Group (AAL) closed up more than +3%. What you need to know… The S&P 500 Index ($SPX) (SPY) on Wednesday closed up +0.81%, the Dow Jones Industrials Index ($DOWI) (DIA) closed up +0.39%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed up +1.45%. Stocks on Wednesday closed moderately higher as lower bond yields temporarily eased interest rate concerns and supported gains in stocks.
|
American Airlines Group (AAL) closed up more than +3%. Stock indexes fell back from their best levels as energy stocks declined after crude prices tumbled more than -5% to a 5-week low. The 10-year T-note yield fell -6.3 bp to 4.733%.
|
2220.0
|
2023-10-04 00:00:00 UTC
|
3 Stocks to Buy BEFORE Interest Rates Plateau and Fall
|
AAL
|
https://www.nasdaq.com/articles/3-stocks-to-buy-before-interest-rates-plateau-and-fall
|
nan
|
nan
|
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The past few years have been a rollercoaster ride for companies and investors alike. When the Covid-19 pandemic triggered a market crash in early 2020, the Federal Reserve responded aggressively by slashing interest rates to near zero. Many companies took advantage of ultra-cheap borrowing costs to load up on debt and survive the massive economic disruption. However, much of this debt was issued with floating interest rates, leaving corporations vulnerable when the Fed pivoted to raising rates in 2022. Now, as interest rates peak, companies saddled with floating-rate debt are getting squeezed by spiking interest payments. Their profits and valuations have taken a beating.
Nonetheless, this pain will be temporary for companies with strong underlying businesses. While floating-rate debt felt like free money during the pandemic, high-interest costs are now wreaking havoc on cash flows. Yet, as rates inevitably plateau and retreat, these companies will quickly regain their financial footing. With lower debt expenses, their earnings growth will accelerate rapidly. And as profits rebound, their stock prices should follow suit.
Savvy investors can take advantage of this opportunity by snapping up high-quality companies with lots of floating-rate debt while prices remain depressed. Then, you can enjoy the rewards when their performance bounces back as rates decline. Here are the three stocks I’m watching right now.
Carnival Corporation (CCL)
Source: NAN728 / Shutterstock.com
Carnival Corporation (NYSE:CCL) has endured extreme volatility over the past few years, with its share price declining more than 80% from its 2018 peak. The pandemic dealt a massive blow to the cruise industry, with health concerns and travel restrictions severely hampering demand. Thus, Carnival saw revenues plunge, and was forced to take on substantial debt just to stay afloat.
However, there are signs Carnival may be turning a corner and cruising towards calmer waters. In the latest quarter, Carnival generated revenues of $6.85 billion and earnings per share of $0.86, handily beating Wall Street estimates. Occupancy levels approached historical highs in August across its fleet, while ticket prices soared 7% above 2019 levels. New bookings and customer deposits also hit fresh records.
Critically, Carnival is making solid progress in paying down debt and reducing leverage. While long-term debt is expected to remain elevated at $31 billion, it has come down by more than $4 billion from its peak. Plus, with profits rebounding, Carnival is poised to accelerate debt reduction and restore its financial health. As the lingering impacts of COVID fade further, the company’s cash generation ability should continue improving.
There’s no denying Carnival still faces challenges, with high fuel costs and inflationary pressures biting into margins. However, at a share price languishing around $13, Carnival offers compelling value for investors with a long-term focus. In essence, you can buy CCL stock today for what it traded at in 1996, ignoring the pandemic anomaly. With its core cruising business rebounding strongly, Carnival appears significantly undervalued at current levels. The market may be underestimating its staying power and ability to excel in the post-COVID world. The consensus upside potential with this stock is 47%.
American Airlines (AAL)
Source: GagliardiPhotography / Shutterstock.com
American Airlines (NASDAQ:AAL) is another pandemic-battered stock with huge upside potential. This leading airline faced an unprecedented plunge in travel demand, leaving it swimming in red ink. American Airlines burned through a tremendous amount of cash, simply trying to endure until travel picked back up.
Flash forward to today, and American Airlines is flying high once again. The summer travel season witnessed a resurgence in demand, allowing American Airlines to deliver record revenues of $14 billion in the second quarter along with its fifth straight profitable quarter. Domestic bookings remain robust, while international travel leads the recovery.
Just as importantly, American Airlines is acting aggressively to repair its balance sheet. The company reduced total debt by $9.4 billion from its 2021 peak, leaving it with $30.7 billion remaining as of Q2 2023. While still elevated, the company’s debt burden is clearly easing, and American Airlines’ interest coverage metrics are improving substantially. With industry conditions normalizing, profits are rebounding strongly, which should allow management to further accelerate deleveraging.
Obviously, higher fuel costs and lingering economic uncertainty are biting the stock. But with shares trading at only a fraction of their pre-pandemic value, American Airlines looks compelling for investors who believe it has left the worst turbulence behind. Its operations and financials are trending very positively now that travel activity is rebounding healthily. For anyone building a long-term portfolio, American Airlines deserves a close look at today’s discounted levels before the market rewards its recovery. Wall Street believe AAL stock can deliver 40% upside in one year.
AT&T (T)
Source: Shutterstock
In contrast to pandemic-induced carnage, the decline at AT&T (NYSE:T) has been more gradual and painful. This telecom giant has suffered from cord-cutting pressuring its video distribution business along with heavy debt burdens from acquisitions gone awry. Its stock has bled consistently lower and now sits 55% below 2016 peaks.
However, for contrarian investors, the negativity looks overdone. Steps to streamline operations and strengthen its financial position. While still a work in progress, AT&T reduced net debt by $20 billion over the past three years to $128 billion (long-term debt). It recently transferred $8 billion of pension obligations to insurance firms to ease this burden. Even amidst massive interest expenses, AT&T generated $4.2 billion of free cash flow in the first half of 2023.
The underlying businesses also look healthier. The company’s mobility unit is performing well, with wireless service revenues up 4.9% last quarter. New fiber locations over the past three years total 7 million, with passed locations up 40%. These fiber customers spend more on average than legacy copper-based ones, providing a higher-margin revenue stream.
Right now, 5G deployments and fiber investments are peaking, portending lower future capital spending. AT&T anticipates using more free cash flow to pay down debt and restore its financial flexibility going forward. Thus, analysts believe the end of the bleeding is near, and the consensus price target implies 38% upside for shares of T stock.
On the date of publication, Omor Ibne Ehsan 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.
Omor Ibne Ehsan is a writer at InvestorPlace. He is a self-taught investor with a focus on growth and cyclical stocks that have strong fundamentals, value, and long-term potential. He also has an interest in high-risk, high-reward investments such as cryptocurrencies and penny stocks. You can follow him on LinkedIn.
More From InvestorPlace
Musk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In.
ChatGPT IPO Could Shock the World, Make This Move Before the Announcement
The Rich Use This Income Secret (NOT Dividends) Far More Than Regular Investors
The post 3 Stocks to Buy BEFORE Interest Rates Plateau and Fall 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 (AAL) Source: GagliardiPhotography / Shutterstock.com American Airlines (NASDAQ:AAL) is another pandemic-battered stock with huge upside potential. Wall Street believe AAL stock can deliver 40% upside in one year. Savvy investors can take advantage of this opportunity by snapping up high-quality companies with lots of floating-rate debt while prices remain depressed.
|
American Airlines (AAL) Source: GagliardiPhotography / Shutterstock.com American Airlines (NASDAQ:AAL) is another pandemic-battered stock with huge upside potential. Wall Street believe AAL stock can deliver 40% upside in one year. Carnival Corporation (CCL) Source: NAN728 / Shutterstock.com Carnival Corporation (NYSE:CCL) has endured extreme volatility over the past few years, with its share price declining more than 80% from its 2018 peak.
|
American Airlines (AAL) Source: GagliardiPhotography / Shutterstock.com American Airlines (NASDAQ:AAL) is another pandemic-battered stock with huge upside potential. Wall Street believe AAL stock can deliver 40% upside in one year. InvestorPlace - Stock Market News, Stock Advice & Trading Tips The past few years have been a rollercoaster ride for companies and investors alike.
|
American Airlines (AAL) Source: GagliardiPhotography / Shutterstock.com American Airlines (NASDAQ:AAL) is another pandemic-battered stock with huge upside potential. Wall Street believe AAL stock can deliver 40% upside in one year. Now, as interest rates peak, companies saddled with floating-rate debt are getting squeezed by spiking interest payments.
|
2221.0
|
2023-10-04 00:00:00 UTC
|
Stocks Mixed as Bond Rout Eases
|
AAL
|
https://www.nasdaq.com/articles/stocks-mixed-as-bond-rout-eases
|
nan
|
nan
|
What you need to know…
The S&P 500 Index ($SPX) (SPY) today is down -0.11%, the Dow Jones Industrials Index ($DOWI) (DIA) is down -0.29%, and the Nasdaq 100 Index ($IUXX) (QQQ) is up +0.42%.
Stocks this morning are mixed, with the Dow Jones Industrials falling to a 4-month low. Lower bond yields today have temporarily eased interest rate concerns and support stocks. T-note yields fell after September's monthly ADP employment report showed fewer jobs than expected, a dovish factor for Fed policy. Stock indexes fell back from their best levels as energy stocks declined after crude prices tumbled more than -3% to a 3-week low. Also, the stronger-than-expected Sep ISM services and Aug factory orders reports lifted T-note yields from their lowest levels and weighed on stocks.
The U.S. Sep ADP employment change rose +89,000, weaker than expectations of +150,000 and the smallest increase in over 2-1/2 years.
The U.S. Sep ISM services index fell -0.9 to 53.6, stronger than expectations of 53.5.
U.S. Aug factory orders rose +1.2% m/m, stronger than expectations of +0.3% m/m.
Weekly U.S. MBA mortgage applications fell -6.0% in the week ended Sep 29 to its lowest level since 1996. The home purchase sub-index fell -5.7% to 136.6, the lowest since 1995. The refinancing sub-index fell -6.6% w/w. The 30-year fixed mortgage rate rose +12 bp to 7.53%, the highest in almost 23 years.
The markets are discounting a 20% chance that the FOMC will raise the funds rate by +25 bp at the next FOMC meeting that ends on November 1, and a 40% 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 fell back from a new 16-year high of 4.880% and is down -1.9 bp at 4.777%. The 10-year German bund yield fell back from a 12-year high of 3.026% and is down -0.3 bp at 2.968%. The 10-year UK gilt yield rose to a 1-1/2 month high of 4.666% and is up +3.4 at 4.631%.
Overseas stock markets are lower. The Euro Stoxx 50 is down -0.11%. China’s Shanghai Composite Index was closed for the Golden Week holidays. Japan’s Nikkei 225 today closed -2.28%.
Today’s stock movers…
Airline stocks are climbing today as crude prices are down more than -3% at a 3-week low, which lowers fuel costs and may boost airline profits. American Airlines Group (AAL) is up more than +2%. Also, Delta Air Lines (DAL), Southwest Airlines (LUV), and United Airlines (UAL) are up more than +1%.
Molson Coors Beverage (TAP) is up more than +2% after announcing a new $2 billion stock buyback plan.
Cruise line stocks are moving higher today after Shore Capital Stockbrokers upgraded Carnival to hold from sell. As a result, Carnival (CCL), Norwegian Cruise Line Holdings (NCLH), and Royal Caribbean Cruises Ltd (RCL) are up more than +1%.
Matson Inc (MATX) is up more than +3% after Wolfe Research upgraded the stock to outperform from peer perform with a price target of $113.
Palantir Technologies (PLTR) is up more than +2% as the company has emerged as the top pick for a contract to overhaul the UK’s National Health Service.
Hub Group (HUBG) is up more than +2% after Wolfe Research upgraded the stock to outperform from peer perform with a price target of $98.
Energy companies and energy service stocks are under pressure today, with the price of WTI crude down more than -3% at a 3-week low. As a result, Phillips 66 (PSX) is down more than -4% to lead losers in the S&P 500, and Valero Energy (VLO) and Marathon Petroleum (MPC) are also down more than -4%. In addition, Haliburton (HAL), Marathon Oil (MRO), Devon Energy (DVN), Diamondback Energy (FANG), and Schlumberger (SLB) are down more than -3%. Finally, Chevron (CVX) is down more than -2% to lead losers in the Dow Jones Industrials.
A10 Networks (ATEN) is down more than -33% after forecasting preliminary Q3 revenue between $56.5 million-$58.5 million, well below the consensus of $74.5 million.
Cal-Maine Foods (CALM) is down more than -7% after reporting Q1 net sales of $459.3 million, weaker than the consensus of $479.5 million.
ON Semiconductor (ON) is down more than -1% after BNP Paribas Exane downgraded the stock to neutral from outperform.
PPL Corp (PPL) is down more than -1% after UBS downgraded the stock to neutral from buy.
Across the markets…
December 10-year T-notes (ZNZ23) this morning are up +6 ticks, and the 10-year T-note yield is down -1.9 bp at 4.777%. Dec T-notes today recovered from a new 16-year nearest-futures low, and the 10-year T-note yield fell back from a 16-year high of 4.880%. Short covering emerged in T-notes today after the Sep ADP employment report rose less than expected, a sign of a slowing labor market that is dovish for Fed policy. T-notes fell back from their best levels on the stronger-than-expected Sep ISM services and Aug factory orders reports.
The dollar index (DXY00) today is down by -0.33%. The dollar is under pressure today after the monthly ADP employment report rose less than expected, which knocked T-note yields lower and undercut the dollar. Also, a rebound in stocks today has curbed the liquidity demand for the dollar.
EUR/USD (^EURUSD) today is up by +0.47%. The euro today is moving higher on weakness in the dollar. Also, hawkish comments today from ECB President Lagarde gave EUR/USD a boost when she said the ECB will keep interest rates restrictive “for as long as necessary.”
Today’s Eurozone economic news was mixed for the euro. On the positive side, the Eurozone Sep S&P composite PMI was revised upward by +0.1 to 47.2 from the initially reported 47.1. Conversely, Aug retail sales fell -1.2% m/m, weaker than expectations of -0.5% m/m and the biggest decline in 8 months. Also, Aug PPI fell a record -11.5% y/y from a -7.6% y/y decline in July, a dovish factor for ECB policy.
ECB President Lagarde said future ECB decisions "will ensure that the interest rates will be set at sufficiently restrictive levels for as long as necessary."
USD/JPY (^USDJPY) is down by -0.09%. The yen today is posting modest gains as T-note yields fall. The yen also garnered support from today’s economic news that showed the Japan Sep Jibun Bank services PMI was revised upward. In addition, the yen garnered support from higher Japanese government bond yields after the 10-year JGB bond yield rose to a 10-year high of 0.810%.
December gold (GCZ3) today is down -2.1 (-0.11%), and Dec silver (SIZ23) is down -0.032 (-0.15%). Precious metals prices this morning are modestly lower. Strength in stocks today has reduced safe-haven demand for precious metals. Also, hawkish comments from ECB President Lagarde undercut gold today when she said the ECB will keep interest rates restrictive “for as long as necessary.” In addition, long liquidation pressures are weighing on gold after long gold holdings in ETFs fell to a 3-1/2 year low on Tuesday. A weaker dollar today is limiting losses in precious metals along with a decline in T-note yields.
More Stock Market News from Barchart
Markets Today: Stocks Rebound as Bond Yields Fall on a Weak ADP Report
How To Find Options Trades This Earnings Season
Stocks Climb Before the Open as U.S. ADP Jobs Report Looms
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%. T-note yields fell after September's monthly ADP employment report showed fewer jobs than expected, a dovish factor for Fed policy. Short covering emerged in T-notes today after the Sep ADP employment report rose less than expected, a sign of a slowing labor market that is dovish for Fed policy.
|
American Airlines Group (AAL) is up more than +2%. T-note yields fell after September's monthly ADP employment report showed fewer jobs than expected, a dovish factor for Fed policy. Also, the stronger-than-expected Sep ISM services and Aug factory orders reports lifted T-note yields from their lowest levels and weighed on stocks.
|
American Airlines Group (AAL) is up more than +2%. Today’s stock movers… Airline stocks are climbing today as crude prices are down more than -3% at a 3-week low, which lowers fuel costs and may boost airline profits. The dollar is under pressure today after the monthly ADP employment report rose less than expected, which knocked T-note yields lower and undercut the dollar.
|
American Airlines Group (AAL) is up more than +2%. Stock indexes fell back from their best levels as energy stocks declined after crude prices tumbled more than -3% to a 3-week low. The dollar is under pressure today after the monthly ADP employment report rose less than expected, which knocked T-note yields lower and undercut the dollar.
|
2222.0
|
2023-10-04 00:00:00 UTC
|
Anglo's S.African iron ore unit plans to cut 100-plus jobs due to rail problems
|
AAL
|
https://www.nasdaq.com/articles/anglos-s.african-iron-ore-unit-plans-to-cut-100-plus-jobs-due-to-rail-problems
|
nan
|
nan
|
Adds quote, details in paragraphs 4-7
JOHANNESBURG, Oct 4 (Reuters) - Anglo American's AAL.L South African iron ore unit plans to cut scores of jobs at its head office as it restructures amid challenges in moving sufficient volumes to ports due to rail constraints.
Kumba Iron Ore KIOJ.J sent notice to cut 183 jobs, with the majority at its headquarters, Livhuwani Mammburu, spokesperson for National Union of Mineworkers said.
The job cuts could be pared back to about 141 workers if the restructuring plan is successful, Mammburu said, adding the labour group opposed the plans.
"Kumba said it's embarking on a restructuring and the main reasons they are giving is they are not able to transport more iron ore to the port due to the problems with Transnet," Mammburu told Reuters, referring to the state-owned logistics company.
Kumba was not immediately available to comment.
The miner's iron ore exports have been throttled by frequent disruptions on the rail line operated by Transnet. The disruptions, often caused by locust swarms, have recently been worsened by cable thefts and derailments.
As a result, Kumba has been forced to stockpile more iron ore at mines. Kumba's profit in the six months through June declined 17% due to the rail challenges and softer prices.
(Reporting by Felix Njini Editing by Louise Heavens and Mark Potter)
((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.
|
Adds quote, details in paragraphs 4-7 JOHANNESBURG, Oct 4 (Reuters) - Anglo American's AAL.L South African iron ore unit plans to cut scores of jobs at its head office as it restructures amid challenges in moving sufficient volumes to ports due to rail constraints. Kumba Iron Ore KIOJ.J sent notice to cut 183 jobs, with the majority at its headquarters, Livhuwani Mammburu, spokesperson for National Union of Mineworkers said. "Kumba said it's embarking on a restructuring and the main reasons they are giving is they are not able to transport more iron ore to the port due to the problems with Transnet," Mammburu told Reuters, referring to the state-owned logistics company.
|
Adds quote, details in paragraphs 4-7 JOHANNESBURG, Oct 4 (Reuters) - Anglo American's AAL.L South African iron ore unit plans to cut scores of jobs at its head office as it restructures amid challenges in moving sufficient volumes to ports due to rail constraints. Kumba Iron Ore KIOJ.J sent notice to cut 183 jobs, with the majority at its headquarters, Livhuwani Mammburu, spokesperson for National Union of Mineworkers said. "Kumba said it's embarking on a restructuring and the main reasons they are giving is they are not able to transport more iron ore to the port due to the problems with Transnet," Mammburu told Reuters, referring to the state-owned logistics company.
|
Adds quote, details in paragraphs 4-7 JOHANNESBURG, Oct 4 (Reuters) - Anglo American's AAL.L South African iron ore unit plans to cut scores of jobs at its head office as it restructures amid challenges in moving sufficient volumes to ports due to rail constraints. Kumba Iron Ore KIOJ.J sent notice to cut 183 jobs, with the majority at its headquarters, Livhuwani Mammburu, spokesperson for National Union of Mineworkers said. "Kumba said it's embarking on a restructuring and the main reasons they are giving is they are not able to transport more iron ore to the port due to the problems with Transnet," Mammburu told Reuters, referring to the state-owned logistics company.
|
Adds quote, details in paragraphs 4-7 JOHANNESBURG, Oct 4 (Reuters) - Anglo American's AAL.L South African iron ore unit plans to cut scores of jobs at its head office as it restructures amid challenges in moving sufficient volumes to ports due to rail constraints. Kumba Iron Ore KIOJ.J sent notice to cut 183 jobs, with the majority at its headquarters, Livhuwani Mammburu, spokesperson for National Union of Mineworkers said. The job cuts could be pared back to about 141 workers if the restructuring plan is successful, Mammburu said, adding the labour group opposed the plans.
|
2223.0
|
2023-10-04 00:00:00 UTC
|
Anglo's S.African iron ore unit to cut some jobs due to rail problems
|
AAL
|
https://www.nasdaq.com/articles/anglos-s.african-iron-ore-unit-to-cut-some-jobs-due-to-rail-problems
|
nan
|
nan
|
JOHANNESBURG, Oct 4 (Reuters) - Anglo American's AAL.L South African iron ore unit plans to cut some jobs at its head office as it restructures due to challenges in moving sufficient volumes to ports due to rail constraints.
Kumba Iron Ore KIOJ.J sent notice to cut 183 jobs, with the majority at its head office, Livhuwani Mammburu, spokesperson for National Union of Mineworkers said.
The job cuts could be pared back to about 141 workers if the restructuring plan is successful, Mammburu said, adding that the labour body is opposed to the plans.
(Reporting by Felix Njini, Editing by 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.
|
JOHANNESBURG, Oct 4 (Reuters) - Anglo American's AAL.L South African iron ore unit plans to cut some jobs at its head office as it restructures due to challenges in moving sufficient volumes to ports due to rail constraints. Kumba Iron Ore KIOJ.J sent notice to cut 183 jobs, with the majority at its head office, Livhuwani Mammburu, spokesperson for National Union of Mineworkers said. (Reporting by Felix Njini, Editing by 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.
|
JOHANNESBURG, Oct 4 (Reuters) - Anglo American's AAL.L South African iron ore unit plans to cut some jobs at its head office as it restructures due to challenges in moving sufficient volumes to ports due to rail constraints. Kumba Iron Ore KIOJ.J sent notice to cut 183 jobs, with the majority at its head office, Livhuwani Mammburu, spokesperson for National Union of Mineworkers said. The job cuts could be pared back to about 141 workers if the restructuring plan is successful, Mammburu said, adding that the labour body is opposed to the plans.
|
JOHANNESBURG, Oct 4 (Reuters) - Anglo American's AAL.L South African iron ore unit plans to cut some jobs at its head office as it restructures due to challenges in moving sufficient volumes to ports due to rail constraints. The job cuts could be pared back to about 141 workers if the restructuring plan is successful, Mammburu said, adding that the labour body is opposed to the plans. (Reporting by Felix Njini, Editing by 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.
|
JOHANNESBURG, Oct 4 (Reuters) - Anglo American's AAL.L South African iron ore unit plans to cut some jobs at its head office as it restructures due to challenges in moving sufficient volumes to ports due to rail constraints. Kumba Iron Ore KIOJ.J sent notice to cut 183 jobs, with the majority at its head office, Livhuwani Mammburu, spokesperson for National Union of Mineworkers said. The job cuts could be pared back to about 141 workers if the restructuring plan is successful, Mammburu said, adding that the labour body is opposed to the plans.
|
2224.0
|
2023-10-03 00:00:00 UTC
|
Air Canada (ACDVF) Continues to Grapple With Pilot Unrest
|
AAL
|
https://www.nasdaq.com/articles/air-canada-acdvf-continues-to-grapple-with-pilot-unrest
|
nan
|
nan
|
Pilots of Air Canada ACDVF staged a protest at Toronto's Pearson airport demanding higher pay, job security and better working conditions. Talks are currently ongoing between the company and the union. The Air Line Pilots Association represents or ALPA represents more than 5,000 pilots.
With no breakthrough yet achieved, the pilots demonstrated at the Pearson airport. Talks have been ongoing since Jun 2023. Air Canada's pilots have received a 2% wage increase per year since 2014. The contract ended on Sep 29. The union believes that the ongoing talks will continue throughout October, leaving them without a contract.
Pilots of ACDVF, currently sporting a Zacks Rank #1 (Strong Buy), are naturally pressing for a new pay-related contract, given that its counterparts in the United States have recently inked lucrative deals. In August, American Airlines AAL inked a four-year pay-related deal with its pilots. The dealis valued at $9.6 billion over its tenure.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Approval of the deal makes AAL’s pilots eligible for an immediate pay raise in excess of 21%, on average, as it includes roughly $1.1 billion in immediate, one-time payments and ratification bonuses. The deal also has provisions for retroactive pay for the first four months of 2023.
In March, Delta Air Lines’ DAL pilots ratified a four-year deal, which made DAL’s 15,0000 pilots eligible for a 34% pay-hike over the next four years. With North American airlines grappling with pilot shortage, the bargaining power of this group has naturally increased as air-travel demand is buoyant, having bounced back very strongly from the pandemic lows.
Per Charlene Hudy, Chair of the governing body for ACDVF’s pilots’ union, "We have quite a few issues we need to address in terms of career progression, our job security, and aviation safety. We have to close the growing wage gap between us and our American counterparts."
Mainly due to the pilot unrest, shares of Air Canada have shed 16.2% of their value in a month’s time, compared to its industry’s 11.9% fall.
Image Source: Zacks Investment Research
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
American Airlines Group Inc. (AAL) : Free Stock Analysis Report
Air Canada (ACDVF) : 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.
|
In August, American Airlines AAL inked a four-year pay-related deal with its pilots. Approval of the deal makes AAL’s pilots eligible for an immediate pay raise in excess of 21%, on average, as it includes roughly $1.1 billion in immediate, one-time payments and ratification bonuses. Click to get this free report Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Air Canada (ACDVF) : Free Stock Analysis Report To read this article on Zacks.com click here.
|
In August, American Airlines AAL inked a four-year pay-related deal with its pilots. Click to get this free report Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Air Canada (ACDVF) : Free Stock Analysis Report To read this article on Zacks.com click here. Approval of the deal makes AAL’s pilots eligible for an immediate pay raise in excess of 21%, on average, as it includes roughly $1.1 billion in immediate, one-time payments and ratification bonuses.
|
Click to get this free report Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Air Canada (ACDVF) : Free Stock Analysis Report To read this article on Zacks.com click here. In August, American Airlines AAL inked a four-year pay-related deal with its pilots. Approval of the deal makes AAL’s pilots eligible for an immediate pay raise in excess of 21%, on average, as it includes roughly $1.1 billion in immediate, one-time payments and ratification bonuses.
|
Approval of the deal makes AAL’s pilots eligible for an immediate pay raise in excess of 21%, on average, as it includes roughly $1.1 billion in immediate, one-time payments and ratification bonuses. In August, American Airlines AAL inked a four-year pay-related deal with its pilots. Click to get this free report Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Air Canada (ACDVF) : Free Stock Analysis Report To read this article on Zacks.com click here.
|
2225.0
|
2023-10-02 00:00:00 UTC
|
3 Stocks to Buy Before the Holiday Shopping Boom
|
AAL
|
https://www.nasdaq.com/articles/3-stocks-to-buy-before-the-holiday-shopping-boom
|
nan
|
nan
|
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The fourth and final quarter of 2023 is upon us and the year-end holidays are fast approaching. That could mean a boost in the sales of many businesses, from retailers to airlines and e-commerce companies. In mid-September, accounting firm Deloitte released a report forecasting that holiday retail sales will rise between 3.5% and 4.6% this year, while e-commerce holiday sales are predicted to grow between 10.3% and 12.8%. While that’s a slowdown from last year due mostly to inflation and high interest rates, holiday sales are still expected to total up to $1.56 trillion between November and the end of December this year. As usual, some companies can be expected to benefit more than others from the surge in year-end consumer spending, especially around the Black Friday and Cyber Monday shopping events. Here are three stocks to buy before the holiday shopping boom gets underway.
Amazon (AMZN)
Source: Tada Images / Shutterstock.com
E-commerce leader Amazon (NASDAQ:AMZN) has announced plans to hire 250,000 additional workers for the holidays this year and boost the pay of warehouse and delivery workers to $20.50 an hour from $19. Additionally, Amazon is planning to kick off the holiday shopping season with its latest Prime Day sales event scheduled to take place on October 10 and 11 of this year.
The people hired for the holidays will include full-time, part-time and temporary seasonal workers, according to the company. Amazon appears bullish about the holidays this year, hiring 100,000 more workers than in the final quarter of last year to fulfill online orders. Analysts say Amazon’s hiring plans and autumn Prime Day sales event counter perceptions that the U.S. economy is slowing and consumers are spending less.
Amazon’s last Prime Day sales event held in July generated more than $12 billion in sales, making it the most successful Prime Day ever for Amazon. AMZN stock has increased 48% year-to-date.
American Airlines (AAL)
Source: GagliardiPhotography / Shutterstock.com
The latest industry data shows that 30% of Americans plan to travel during the year-end holidays, the same proportion that traveled between Thanksgiving and New Year’s Eve in 2022. And 24% of Americans said they plan to spend Christmas this year at a vacation destination. That is good news for American Airlines (NASDAQ:AAL), which is the largest carrier not only in the U.S. but the entire world. Strong holiday travel intentions among consumers come as the company rebounds from the Covid-19 pandemic.
American Airlines reported second-quarter earnings that beat Wall Street forecasts across the board as travel demand surged globally. The carrier announced earnings per share (EPS) of $1.92 versus $1.59 expected by analysts. Revenue in Q2 totaled $14.06 billion compared to $13.74 billion forecasted. Additionally, the airline raised its forward guidance for the remainder of 2023, saying it expects the current travel boom to continue throughout Q4 and the upcoming holidays.
AAL stock has gained 7% in the past 12 months.
Walmart (WMT)
Discount retailer Walmart (NYSE:WMT) is already doing well this year as financially stressed consumers turn to its stores for everything from groceries to clothing and electronics. Walmart could get an even bigger boost from year-end holiday shopping. The Black Friday and Cyber Monday holiday sales events tend to supercharge Walmart’s sales. The company is already advertising its holiday deals for this year.
While Walmart hasn’t announced its holiday hiring intentions just yet, the retailer brought on an additional 40,000 workers to help it manage sales during the busy Christmas shopping season last year. That was actually down more than 70% from 2021 due to concerns about a slowing economy. This year, analysts expect Walmart’s holiday hiring to rebound. Walmart enters the final quarter of the year in good shape, having reported strong financial results due to continued strength in its grocery sales and online spending.
WMT stock has increased 21% over the last 12 months.
On the date of publication, Joel Baglole 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.
Joel Baglole has been a business journalist for 20 years. He spent five years as a staff reporter at The Wall Street Journal, and has also written for The Washington Post and Toronto Star newspapers, as well as financial websites such as The Motley Fool and Investopedia.
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 3 Stocks to Buy Before the Holiday Shopping Boom 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 (AAL) Source: GagliardiPhotography / Shutterstock.com The latest industry data shows that 30% of Americans plan to travel during the year-end holidays, the same proportion that traveled between Thanksgiving and New Year’s Eve in 2022. That is good news for American Airlines (NASDAQ:AAL), which is the largest carrier not only in the U.S. but the entire world. AAL stock has gained 7% in the past 12 months.
|
American Airlines (AAL) Source: GagliardiPhotography / Shutterstock.com The latest industry data shows that 30% of Americans plan to travel during the year-end holidays, the same proportion that traveled between Thanksgiving and New Year’s Eve in 2022. That is good news for American Airlines (NASDAQ:AAL), which is the largest carrier not only in the U.S. but the entire world. AAL stock has gained 7% in the past 12 months.
|
American Airlines (AAL) Source: GagliardiPhotography / Shutterstock.com The latest industry data shows that 30% of Americans plan to travel during the year-end holidays, the same proportion that traveled between Thanksgiving and New Year’s Eve in 2022. That is good news for American Airlines (NASDAQ:AAL), which is the largest carrier not only in the U.S. but the entire world. AAL stock has gained 7% in the past 12 months.
|
American Airlines (AAL) Source: GagliardiPhotography / Shutterstock.com The latest industry data shows that 30% of Americans plan to travel during the year-end holidays, the same proportion that traveled between Thanksgiving and New Year’s Eve in 2022. That is good news for American Airlines (NASDAQ:AAL), which is the largest carrier not only in the U.S. but the entire world. AAL stock has gained 7% in the past 12 months.
|
2226.0
|
2023-09-29 00:00:00 UTC
|
American Airlines (AAL) Dips More Than Broader Markets: What You Should Know
|
AAL
|
https://www.nasdaq.com/articles/american-airlines-aal-dips-more-than-broader-markets%3A-what-you-should-know-11
|
nan
|
nan
|
American Airlines (AAL) closed the most recent trading day at $12.81, moving -0.85% from the previous trading session. This change lagged the S&P 500's daily loss of 0.27%. Elsewhere, the Dow lost 0.47%, while the tech-heavy Nasdaq added 0.14%.
Prior to today's trading, shares of the world's largest airline had lost 12.29% over the past month. This has lagged the Transportation sector's loss of 4.76% and the S&P 500's loss of 2.86% in that time.
Investors will be hoping for strength from American Airlines as it approaches its next earnings release. In that report, analysts expect American Airlines to post earnings of $0.55 per share. This would mark a year-over-year decline of 20.29%. Our most recent consensus estimate is calling for quarterly revenue of $13.56 billion, up 0.74% from the year-ago period.
AAL's full-year Zacks Consensus Estimates are calling for earnings of $2.88 per share and revenue of $53.09 billion. These results would represent year-over-year changes of +476% and +8.4%, respectively.
Any recent changes to analyst estimates for American Airlines should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 9.33% lower within the past month. American Airlines is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that American Airlines has a Forward P/E ratio of 4.48 right now. For comparison, its industry has an average Forward P/E of 8.07, which means American Airlines is trading at a discount to the group.
Meanwhile, AAL's PEG ratio is currently 0.08. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Transportation - Airline stocks are, on average, holding a PEG ratio of 0.32 based on yesterday's closing prices.
The Transportation - Airline industry is part of the Transportation sector. This group has a Zacks Industry Rank of 177, putting it in the bottom 30% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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 a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ 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) closed the most recent trading day at $12.81, moving -0.85% from the previous trading session. AAL's full-year Zacks Consensus Estimates are calling for earnings of $2.88 per share and revenue of $53.09 billion. Meanwhile, AAL's PEG ratio is currently 0.08.
|
American Airlines (AAL) closed the most recent trading day at $12.81, moving -0.85% from the previous trading session. Click to get this free report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. AAL's full-year Zacks Consensus Estimates are calling for earnings of $2.88 per share and revenue of $53.09 billion.
|
American Airlines (AAL) closed the most recent trading day at $12.81, moving -0.85% from the previous trading session. AAL's full-year Zacks Consensus Estimates are calling for earnings of $2.88 per share and revenue of $53.09 billion. Meanwhile, AAL's PEG ratio is currently 0.08.
|
American Airlines (AAL) closed the most recent trading day at $12.81, moving -0.85% from the previous trading session. AAL's full-year Zacks Consensus Estimates are calling for earnings of $2.88 per share and revenue of $53.09 billion. Meanwhile, AAL's PEG ratio is currently 0.08.
|
2227.0
|
2023-09-29 00:00:00 UTC
|
Air Canada pilots stage protests in Toronto as contract deadline looms
|
AAL
|
https://www.nasdaq.com/articles/air-canada-pilots-stage-protests-in-toronto-as-contract-deadline-looms
|
nan
|
nan
|
By Shivansh Tiwary and Wa Lone
Sept 29 (Reuters) - Air Canada AC.TO pilots staged a protest at Toronto's Pearson Airport on Friday, demanding better pay and benefits as talks over a new contract covering 4,500 pilots at Canada's largest carrier continue.
Canadian pilots are pressing for higher salaries and better scheduling after U.S. counterparts at companies, including United Airlines UAL.O, Delta Air Lines DAL.N and American Airlines AAL.O, made historic gains in new labor deals over the last few months.
North American airlines have been grappling with challenges in recruiting enough trained pilots and crew members as they aim to capitalize on the strong surge in international travel demand following the pandemic.
"We have quite a few issues we need to address in terms of career progression, our job security, and aviation safety. We have to close the growing wage gap between us and our American counterparts," Chair of the governing body for the airline's pilots union Charlene Hudy told Reuters.
Currently, the union is actively engaged in negotiations with Air Canada, and it anticipates that these discussions will persist throughout the entire month of October, Hudy added.
Air Canada's pilots have received a 2% wage increase per year since 2014. The country's inflation rate was running at 4.3% in March, a 19-month low.
"We are still early in the bargaining process and Air Canada remains engaged in productive discussions with ALPA," the carrier said on Friday.
The pilots for the Montreal-based carrier, represented by the Air Line Pilots Association (ALPA) union, began bargaining for new labor terms this summer.
The company's previous decade-long contract ends on Friday.
(Reporting by Shivansh Tiwary in Bengaluru and Wa Lone in Toronto; Editing by Shweta Agarwal)
((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.
|
Canadian pilots are pressing for higher salaries and better scheduling after U.S. counterparts at companies, including United Airlines UAL.O, Delta Air Lines DAL.N and American Airlines AAL.O, made historic gains in new labor deals over the last few months. North American airlines have been grappling with challenges in recruiting enough trained pilots and crew members as they aim to capitalize on the strong surge in international travel demand following the pandemic. We have to close the growing wage gap between us and our American counterparts," Chair of the governing body for the airline's pilots union Charlene Hudy told Reuters.
|
Canadian pilots are pressing for higher salaries and better scheduling after U.S. counterparts at companies, including United Airlines UAL.O, Delta Air Lines DAL.N and American Airlines AAL.O, made historic gains in new labor deals over the last few months. By Shivansh Tiwary and Wa Lone Sept 29 (Reuters) - Air Canada AC.TO pilots staged a protest at Toronto's Pearson Airport on Friday, demanding better pay and benefits as talks over a new contract covering 4,500 pilots at Canada's largest carrier continue. The pilots for the Montreal-based carrier, represented by the Air Line Pilots Association (ALPA) union, began bargaining for new labor terms this summer.
|
Canadian pilots are pressing for higher salaries and better scheduling after U.S. counterparts at companies, including United Airlines UAL.O, Delta Air Lines DAL.N and American Airlines AAL.O, made historic gains in new labor deals over the last few months. By Shivansh Tiwary and Wa Lone Sept 29 (Reuters) - Air Canada AC.TO pilots staged a protest at Toronto's Pearson Airport on Friday, demanding better pay and benefits as talks over a new contract covering 4,500 pilots at Canada's largest carrier continue. The pilots for the Montreal-based carrier, represented by the Air Line Pilots Association (ALPA) union, began bargaining for new labor terms this summer.
|
Canadian pilots are pressing for higher salaries and better scheduling after U.S. counterparts at companies, including United Airlines UAL.O, Delta Air Lines DAL.N and American Airlines AAL.O, made historic gains in new labor deals over the last few months. By Shivansh Tiwary and Wa Lone Sept 29 (Reuters) - Air Canada AC.TO pilots staged a protest at Toronto's Pearson Airport on Friday, demanding better pay and benefits as talks over a new contract covering 4,500 pilots at Canada's largest carrier continue. We have to close the growing wage gap between us and our American counterparts," Chair of the governing body for the airline's pilots union Charlene Hudy told Reuters.
|
2228.0
|
2023-09-29 00:00:00 UTC
|
Delta Hopes to Soar Again with Customer Loyalty Tweaks
|
AAL
|
https://www.nasdaq.com/articles/delta-hopes-to-soar-again-with-customer-loyalty-tweaks
|
nan
|
nan
|
Delta Air Lines Inc. (NYSE: DAL) finished higher for the first time since September 19 after the company's CEO said it would make changes to its customer loyalty program.
The new round of changes was on the heels of unpopular updates Delta made two weeks ago. At that time, Delta said that in early 2025, it would count elite membership status by spending, rather than including flights. It would also restrict airport lounge access to customers holding Delta credit cards.
Delta also increased spending thresholds for flyers to earn Silver Medallion status, beginning in 2025. That represents the second level of elite status in the program, above the basic SkyMiles membership and below higher tiers like Gold, Platinum, and Diamond Medallion status.
Addressing the original changes to the program, Delta CEO Ed Bastian told the Atlanta Rotary Club, according to reports.
Moved Too Fast With Changes
“No question we probably went too far in doing that. I think we moved too fast, and we are looking at it now,” he said.
Bastian reportedly also discussed modifications that Delta will make to the loyalty program, with an announcement coming in the next few weeks.
Delta frequent fliers were unhappy with the changes, and rivals such as JetBlue Airways Corp. (NASDAQ: JBLU) and Alaska Air Group Inc. (NYSE: ALK) told social media users they would match their loyalty status if they were to quit Delta.
“We have received a lot of feedback,” Bastian told the Rotary meeting attendees. According to reports of a recording that was released on September 27, the audience applauded Bastian’s comments.
Delta stock ended the September 28 session 0.79% higher, in trading volume 9% higher than average.
Ranks of Loyalty Program Members Growing
With the post-pandemic revenge travel phenomenon, the ranks of Delta Diamond-status flyers have doubled, according to Bastian. That translates to higher demand for upgrades, better seats and Sky Club access. There have also been complaints the clubs are too crowded.
Frequent flyers may have noticed long lines outside the Delta clubs at major airports around the country. That’s a factor that initially led the airline to limit access.
While Delta’s September 28 bounce was welcome to shareholders, the stock has been in a steep correction since mid-July.
In that regard, Delta is trading in tandem with the airline industry, which began its descent at the same time.
Delta Piloting Industry Performance
With a market capitalization of $23.77 billion, Delta is the largest stock within the industry, so it has a big influence on group performance.
You can track that performance using the U.S. Global Jets ETF (NYSEARCA: JETS) chart. If you compare the Delta Air Lines chart with the JETS ETF chart, you’ll see they are on the same flight path.
Delta is the largest holding in the ETF, with an 11.20% weighting.
Other major airlines including Southwest Airlines Co. (NYSE: LUV), United Airlines Holdings Inc. (NASDAQ: UAL) and American Airlines Group Inc. (NASDAQ: AAL) have also been flying lower for the past two-and-a-half months.
The airline industry was in rally mode between March and July, and was among the top 10 best-performing industries three months ago. However, the descent has been rapid, with the majority of U.S. airline stocks going along for the ride.
Airlines Were High Fliers Despite Inflation
Inflation and economic slowdowns have traditionally posed challenges for airlines, as air travel is frequently a place where consumers can cut expenses. Throughout the bout of inflation in the past year, the airlines' business wasn't hurt, as consumers, rather than business travelers, were eager to jump on board planes and visit far-flung locations.
What’s different now? Companies such as American and Spirit Airlines Inc. (NYSE: SAVE) lowered quarterly forecasts based on higher fuel costs, among other factors.
Previously, Southwest and Alaska had already slashed quarterly forecasts. When Southwest issued its lower guidance on September 6, shares fell 2.60%, as you can see on MarketBeat’s Southwest Airlines chart.
That decline, in heavier than normal trading volume, had a ripple effect, dragging down other airline stocks, and contributing to worsening sentiment about the industry.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Other major airlines including Southwest Airlines Co. (NYSE: LUV), United Airlines Holdings Inc. (NASDAQ: UAL) and American Airlines Group Inc. (NASDAQ: AAL) have also been flying lower for the past two-and-a-half months. Delta Air Lines Inc. (NYSE: DAL) finished higher for the first time since September 19 after the company's CEO said it would make changes to its customer loyalty program. Companies such as American and Spirit Airlines Inc. (NYSE: SAVE) lowered quarterly forecasts based on higher fuel costs, among other factors.
|
Other major airlines including Southwest Airlines Co. (NYSE: LUV), United Airlines Holdings Inc. (NASDAQ: UAL) and American Airlines Group Inc. (NASDAQ: AAL) have also been flying lower for the past two-and-a-half months. Delta Air Lines Inc. (NYSE: DAL) finished higher for the first time since September 19 after the company's CEO said it would make changes to its customer loyalty program. If you compare the Delta Air Lines chart with the JETS ETF chart, you’ll see they are on the same flight path.
|
Other major airlines including Southwest Airlines Co. (NYSE: LUV), United Airlines Holdings Inc. (NASDAQ: UAL) and American Airlines Group Inc. (NASDAQ: AAL) have also been flying lower for the past two-and-a-half months. Delta frequent fliers were unhappy with the changes, and rivals such as JetBlue Airways Corp. (NASDAQ: JBLU) and Alaska Air Group Inc. (NYSE: ALK) told social media users they would match their loyalty status if they were to quit Delta. Delta Piloting Industry Performance With a market capitalization of $23.77 billion, Delta is the largest stock within the industry, so it has a big influence on group performance.
|
Other major airlines including Southwest Airlines Co. (NYSE: LUV), United Airlines Holdings Inc. (NASDAQ: UAL) and American Airlines Group Inc. (NASDAQ: AAL) have also been flying lower for the past two-and-a-half months. Delta Air Lines Inc. (NYSE: DAL) finished higher for the first time since September 19 after the company's CEO said it would make changes to its customer loyalty program. Addressing the original changes to the program, Delta CEO Ed Bastian told the Atlanta Rotary Club, according to reports.
|
2229.0
|
2023-09-28 00:00:00 UTC
|
Which Airlines Stock Will Offer Better Returns – American Or United?
|
AAL
|
https://www.nasdaq.com/articles/which-airlines-stock-will-offer-better-returns-american-or-united
|
nan
|
nan
|
Given its better prospects, we believe United Airlines stock (NASDAQ: UAL) is a better pick than its peer, American Airlines stock (NASDAQ: AAL). AAL is trading at a slightly lower valuation of 0.2x revenues than 0.3x for UAL. Investors have assigned a higher multiple to United Airlines stock due to its superior revenue growth and comparatively better financial position, as discussed below.
Interestingly, AAL stock has had a Sharpe Ratio of -0.2 since early 2017, lower than 0.0 for UAL and 0.6 for the S&P 500 Index over the same period. This compares with the Sharpe of 1.3 for the Trefis Reinforced Value portfolio. Sharpe is a measure of return per unit of risk, and high-performance portfolios can provide the best of both worlds.
If we look at stock returns, United Airlines, with 13% returns this year, has fared better than American Airlines, up 0%, and the broader S&P 500 index, up 11%. There is more to the comparison, and in the sections below, we discuss why we believe UAL will offer better returns than AAL in the next three years. We compare a slew of factors, such as historical revenue growth, returns, and valuation, in an interactive dashboard analysis of American Airlines vs. United Airlines: Which Stock Is A Better Bet? Parts of the analysis are summarized below.
1. United Airlines’ Revenue Growth Is Slightly Better
United Airlines’ revenue growth has been slightly better, with a 26% average annual growth rate in the last three years, compared to 25% for American Airlines.
The rise in revenues for both airlines over the recent years can be attributed to a rebound in air travel demand, with passenger traffic and ticket yield rising meaningfully in the recent past.
For perspective, American Airlines’ available seat miles (ASM) declined 25% between 2019 and 2021 but surged 21% y-o-y in 2022. Similarly, its passenger revenue per available seat mile (PRASM) fell 18% between 2019 and 2021 but rose 41% y-o-y in 2022.
In comparison, United Airlines’ ASM decreased 27% between 2019 and 2021 before rising 39% y-o-y in 2022. Its PRASM declined 19% and increased 43% over the same period, respectively.
Looking at the last twelve months, United Airlines’ 43% sales growth has fared better than 30% for American Airlines.
Our American Airlines Revenue Comparison and United Airlines Revenue Comparison dashboards provide more insight into the companies’ sales.
Looking forward, United Airlines will likely see slightly better sales growth than American Airlines. Both companies will likely see their sales rise at a low single-digit average annual growth rate to around $56 billion in three years, based on Trefis Machine Learning analysis.
2. American Airlines Is More Profitable
American Airlines’ reported operating margin slid from 7% in 2019 to -60% in 2020 before recovering to 3% in 2022. In comparison, United Airlines’ operating margin fell from 9% in 2019 to -49% in 2020 but rose to 2% in 2022.
Looking at the last twelve-month period, American Airlines’ operating margin of 9% fares better than 5% for United Airlines.
However, both airlines will likely face pressure on margins with oil prices rising to their ten-month high now. Also, both airlines have recently closed negotiations with pilots, agreeing to an increase in pay by 40% for UAL and 46% for AAL over the next four years.
Our American Airlines Operating Income Comparison and United Airlines Operating Income Comparison dashboards have more details.
3. United Airlines Is Comparatively A Less Risky Pick
Looking at financial risk, United Airlines fares better. Its 214% debt as a percentage of equity is lower than 410% for American Airlines, while its 26% cash as a percentage of assets is higher than 18% for the latter, implying that United Airlines has a comparatively better debt position and more cash cushion.
The high debt-to-equity figures for both airlines can be attributed to much higher debt levels compared to their market capitalizations ($8 billion for AAL and $14 billion for UAL).
American Airlines’ total debt increased from $24.3 billion in 2019 to $38.1 billion in 2022, while its total cash increased from around $4.0 billion to $13.4 billion over the same period. However, the rise in cash balance is primarily due to additional debt raised, as heavy negative operating cash flows in 2020 of $6.5 billion almost completely wiped out positive operating cash flows in 2019, 2021, and 2022.
In comparison, United Airlines’ total debt increased from $15 billion in 2019 to $31 billion in 2022, while its total cash increased from around $2 billion to $9 billion over the same period. However, the rise in cash balance is partly due to additional debt raised, given the $4 billion negative operating cash flows in 2020.
3. The Net of It All
We see that United Airlines has seen superior revenue growth and has a better financial position. On the other hand, American Airlines is more profitable.
However, looking at prospects, using P/S as a base, due to high fluctuations in P/E and P/EBIT, we believe United Airlines will likely offer better returns over the next three years, primarily due to its slightly better-expected revenue growth.
If we compare the current valuation multiples to the historical averages, both appear to have equal upside. American Airlines stock trades at 0.2x sales compared to its last five-year average of 0.4x, and United Airlines stock trades at 0.3x revenues vs. the last five-year average of 0.6x.
Our American Airlines (AAL) Valuation Ratios Comparison and United Airlines (UAL) Valuation Ratios Comparison have more details.
The table below summarizes our revenue and return expectations for both companies over the next three years and points to an expected return of 5% for American Airlines and 10% return for United Airlines over this period, based on Trefis Machine Learning analysis – American Airlines vs. United Airlines– which also provides more details on how we arrive at these numbers.
Although we believe UAL is a better pick over AAL, we acknowledge that 10% returns for UAL isn’t great. There are better opportunities over UAL stock. Our Better Bets Than UAL Stock dashboard details S&P500 stocks that can offer better returns in the next three years.
While UAL may outperform AAL in the next three years, it is helpful to see how American Airlines’ Peers fare on metrics that matter. You will find other valuable comparisons for companies across industries at Peer Comparisons.
Returns Sep 2023
MTD [1] 2023
YTD [1] 2017-23
Total [2]
AAL Return -14% 0% -73%
UAL Return -14% 13% -41%
S&P 500 Return -5% 11% 91%
Trefis Reinforced Value Portfolio -7% 22% 527%
[1] Month-to-date and year-to-date as of 9/27/2023
[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.
|
While UAL may outperform AAL in the next three years, it is helpful to see how American Airlines’ Peers fare on metrics that matter. Given its better prospects, we believe United Airlines stock (NASDAQ: UAL) is a better pick than its peer, American Airlines stock (NASDAQ: AAL). AAL is trading at a slightly lower valuation of 0.2x revenues than 0.3x for UAL.
|
Our American Airlines (AAL) Valuation Ratios Comparison and United Airlines (UAL) Valuation Ratios Comparison have more details. Given its better prospects, we believe United Airlines stock (NASDAQ: UAL) is a better pick than its peer, American Airlines stock (NASDAQ: AAL). AAL is trading at a slightly lower valuation of 0.2x revenues than 0.3x for UAL.
|
Given its better prospects, we believe United Airlines stock (NASDAQ: UAL) is a better pick than its peer, American Airlines stock (NASDAQ: AAL). AAL is trading at a slightly lower valuation of 0.2x revenues than 0.3x for UAL. Interestingly, AAL stock has had a Sharpe Ratio of -0.2 since early 2017, lower than 0.0 for UAL and 0.6 for the S&P 500 Index over the same period.
|
Given its better prospects, we believe United Airlines stock (NASDAQ: UAL) is a better pick than its peer, American Airlines stock (NASDAQ: AAL). AAL is trading at a slightly lower valuation of 0.2x revenues than 0.3x for UAL. Interestingly, AAL stock has had a Sharpe Ratio of -0.2 since early 2017, lower than 0.0 for UAL and 0.6 for the S&P 500 Index over the same period.
|
2230.0
|
2023-09-28 00:00:00 UTC
|
Notable Thursday Option Activity: DASH, AAL, PYPL
|
AAL
|
https://www.nasdaq.com/articles/notable-thursday-option-activity%3A-dash-aal-pypl
|
nan
|
nan
|
Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in DoorDash Inc (Symbol: DASH), where a total volume of 17,313 contracts has been traded thus far today, a contract volume which is representative of approximately 1.7 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 58% of DASH's average daily trading volume over the past month, of 3.0 million shares. Especially high volume was seen for the $67 strike put option expiring September 29, 2023, with 1,970 contracts trading so far today, representing approximately 197,000 underlying shares of DASH. Below is a chart showing DASH's trailing twelve month trading history, with the $67 strike highlighted in orange:
American Airlines Group Inc (Symbol: AAL) options are showing a volume of 145,111 contracts thus far today. That number of contracts represents approximately 14.5 million underlying shares, working out to a sizeable 57.7% of AAL's average daily trading volume over the past month, of 25.2 million shares. Especially high volume was seen for the $5 strike put option expiring June 18, 2026, with 50,331 contracts trading so far today, representing approximately 5.0 million underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $5 strike highlighted in orange:
And PayPal Holdings Inc (Symbol: PYPL) saw options trading volume of 76,852 contracts, representing approximately 7.7 million underlying shares or approximately 57.2% of PYPL's average daily trading volume over the past month, of 13.4 million shares. Particularly high volume was seen for the $59 strike call option expiring September 29, 2023, with 3,008 contracts trading so far today, representing approximately 300,800 underlying shares of PYPL. Below is a chart showing PYPL's trailing twelve month trading history, with the $59 strike highlighted in orange:
For the various different available expirations for DASH options, AAL options, or PYPL options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
Also see:
Cheap Consumer Shares
Top Ten Hedge Funds Holding MLQD
VDE Dividend History
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 $5 strike put option expiring June 18, 2026, with 50,331 contracts trading so far today, representing approximately 5.0 million underlying shares of AAL. Below is a chart showing DASH's trailing twelve month trading history, with the $67 strike highlighted in orange: American Airlines Group Inc (Symbol: AAL) options are showing a volume of 145,111 contracts thus far today. That number of contracts represents approximately 14.5 million underlying shares, working out to a sizeable 57.7% of AAL's average daily trading volume over the past month, of 25.2 million shares.
|
Below is a chart showing AAL's trailing twelve month trading history, with the $5 strike highlighted in orange: And PayPal Holdings Inc (Symbol: PYPL) saw options trading volume of 76,852 contracts, representing approximately 7.7 million underlying shares or approximately 57.2% of PYPL's average daily trading volume over the past month, of 13.4 million shares. Below is a chart showing DASH's trailing twelve month trading history, with the $67 strike highlighted in orange: American Airlines Group Inc (Symbol: AAL) options are showing a volume of 145,111 contracts thus far today. That number of contracts represents approximately 14.5 million underlying shares, working out to a sizeable 57.7% of AAL's average daily trading volume over the past month, of 25.2 million shares.
|
That number of contracts represents approximately 14.5 million underlying shares, working out to a sizeable 57.7% of AAL's average daily trading volume over the past month, of 25.2 million shares. Below is a chart showing AAL's trailing twelve month trading history, with the $5 strike highlighted in orange: And PayPal Holdings Inc (Symbol: PYPL) saw options trading volume of 76,852 contracts, representing approximately 7.7 million underlying shares or approximately 57.2% of PYPL's average daily trading volume over the past month, of 13.4 million shares. Below is a chart showing DASH's trailing twelve month trading history, with the $67 strike highlighted in orange: American Airlines Group Inc (Symbol: AAL) options are showing a volume of 145,111 contracts thus far today.
|
Especially high volume was seen for the $5 strike put option expiring June 18, 2026, with 50,331 contracts trading so far today, representing approximately 5.0 million underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $5 strike highlighted in orange: And PayPal Holdings Inc (Symbol: PYPL) saw options trading volume of 76,852 contracts, representing approximately 7.7 million underlying shares or approximately 57.2% of PYPL's average daily trading volume over the past month, of 13.4 million shares. Below is a chart showing PYPL's trailing twelve month trading history, with the $59 strike highlighted in orange: For the various different available expirations for DASH options, AAL options, or PYPL options, visit StockOptionsChannel.com.
|
2231.0
|
2023-09-28 00:00:00 UTC
|
November 10th Options Now Available For American Airlines Group (AAL)
|
AAL
|
https://www.nasdaq.com/articles/november-10th-options-now-available-for-american-airlines-group-aal
|
nan
|
nan
|
Investors in American Airlines Group Inc (Symbol: AAL) saw new options become available today, for the November 10th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new November 10th contracts and identified one put and one call contract of particular interest.
The put contract at the $11.50 strike price has a current bid of 24 cents. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $11.50, but will also collect the premium, putting the cost basis of the shares at $11.26 (before broker commissions). To an investor already interested in purchasing shares of AAL, that could represent an attractive alternative to paying $12.93/share today.
Because the $11.50 strike represents an approximate 11% 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 2.09% return on the cash commitment, or 17.70% 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 $11.50 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $13.50 strike price has a current bid of 51 cents. If an investor was to purchase shares of AAL stock at the current price level of $12.93/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $13.50. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 8.35% if the stock gets called away at the November 10th 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 $13.50 strike highlighted in red:
Considering the fact that the $13.50 strike represents an approximate 4% 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 3.94% boost of extra return to the investor, or 33.45% 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 $12.93) to be 38%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Top YieldBoost Calls of the S&P 500 »
Also see:
Cheap Growth Stocks
Top 10 Hedge Funds Holding PPG Industries
Institutional Holders of GDI
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 $13.50 strike highlighted in red: Considering the fact that the $13.50 strike represents an approximate 4% 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 become available today, for the November 10th expiration.
|
Below is a chart showing AAL's trailing twelve month trading history, with the $13.50 strike highlighted in red: Considering the fact that the $13.50 strike represents an approximate 4% 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 become available today, for the November 10th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new November 10th 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 $13.50 strike highlighted in red: Considering the fact that the $13.50 strike represents an approximate 4% 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 become available today, for the November 10th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new November 10th 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 $13.50 strike highlighted in red: Considering the fact that the $13.50 strike represents an approximate 4% 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 become available today, for the November 10th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new November 10th contracts and identified one put and one call contract of particular interest.
|
2232.0
|
2023-09-28 00:00:00 UTC
|
UK regulator to assess IAG-American Airlines partnership
|
AAL
|
https://www.nasdaq.com/articles/uk-regulator-to-assess-iag-american-airlines-partnership
|
nan
|
nan
|
Adds background
LONDON, Sept 28 (Reuters) - Britain's competition regulator said it planned to assess a transatlantic partnership deal between British Airways-owner IAG ICAG.L, American Airlines AAL.O and Finnair FIA1S.HE in the context of the post-COVID recovery of the aviation market.
The Competition and Markets Authority's interest in competition on UK-U.S. airline routes stretches back to 2010.
The regulator had been due to conclude the latest phase of its investigation into the partnership during the pandemic, but decided to stick with existing measures during a period when there was little flying due to COVID travel restrictions.
It said on Thursday it would spend six months analysing and reviewing information on the partnership between the airlines, called the Atlantic Joint Business Agreement.
The current interim measures directive expires in 2026.
(Reporting by Muvija M, writing by Sarah Young, editing by Paul Sandle)
((sarah.young@thomsonreuters.com; +44 20 7542 1109; Reuters Messaging: sarah.young.thomsonreuters@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.
|
Adds background LONDON, Sept 28 (Reuters) - Britain's competition regulator said it planned to assess a transatlantic partnership deal between British Airways-owner IAG ICAG.L, American Airlines AAL.O and Finnair FIA1S.HE in the context of the post-COVID recovery of the aviation market. It said on Thursday it would spend six months analysing and reviewing information on the partnership between the airlines, called the Atlantic Joint Business Agreement. (Reporting by Muvija M, writing by Sarah Young, editing by Paul Sandle) ((sarah.young@thomsonreuters.com; +44 20 7542 1109; Reuters Messaging: sarah.young.thomsonreuters@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.
|
Adds background LONDON, Sept 28 (Reuters) - Britain's competition regulator said it planned to assess a transatlantic partnership deal between British Airways-owner IAG ICAG.L, American Airlines AAL.O and Finnair FIA1S.HE in the context of the post-COVID recovery of the aviation market. The Competition and Markets Authority's interest in competition on UK-U.S. airline routes stretches back to 2010. (Reporting by Muvija M, writing by Sarah Young, editing by Paul Sandle) ((sarah.young@thomsonreuters.com; +44 20 7542 1109; Reuters Messaging: sarah.young.thomsonreuters@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.
|
Adds background LONDON, Sept 28 (Reuters) - Britain's competition regulator said it planned to assess a transatlantic partnership deal between British Airways-owner IAG ICAG.L, American Airlines AAL.O and Finnair FIA1S.HE in the context of the post-COVID recovery of the aviation market. The regulator had been due to conclude the latest phase of its investigation into the partnership during the pandemic, but decided to stick with existing measures during a period when there was little flying due to COVID travel restrictions. (Reporting by Muvija M, writing by Sarah Young, editing by Paul Sandle) ((sarah.young@thomsonreuters.com; +44 20 7542 1109; Reuters Messaging: sarah.young.thomsonreuters@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.
|
Adds background LONDON, Sept 28 (Reuters) - Britain's competition regulator said it planned to assess a transatlantic partnership deal between British Airways-owner IAG ICAG.L, American Airlines AAL.O and Finnair FIA1S.HE in the context of the post-COVID recovery of the aviation market. The Competition and Markets Authority's interest in competition on UK-U.S. airline routes stretches back to 2010. The regulator had been due to conclude the latest phase of its investigation into the partnership during the pandemic, but decided to stick with existing measures during a period when there was little flying due to COVID travel restrictions.
|
2233.0
|
2023-09-27 00:00:00 UTC
|
US government shutdown could add misery to air travel
|
AAL
|
https://www.nasdaq.com/articles/us-government-shutdown-could-add-misery-to-air-travel
|
nan
|
nan
|
By David Shepardson
WASHINGTON, Sept 27 (Reuters) - U.S. Transportation Secretary Pete Buttigieg warned on Wednesday that a partial government shutdown could disrupt air travel and said the government would need to furlough 1,000 air traffic controllers in training.
If Congress does not fund government operations before Saturday, the Federal Aviation Administration (FAA) estimates it would have to furlough more than 17,000 employees and halt the training.
Past federal government shutdowns caused "significant delays and longer wait times for travelers", the White House said.
The U.S. Travel Association said a partial shutdown would cost the U.S. travel economy as much as $140 million a day.
During a government shutdown, the U.S. air travel system would be "hampered by more flight delays, longer screening lines and setbacks in air travel modernization," the group said.
Air traffic controllers and Transportation Security Administration (TSA) security officers are among the government workers who would be required to keep working but would not be paid.
Earlier this month, the FAA said it would again extend cuts to minimum flight requirements at congested New York City-area airports through October 2024, citing staffing shortages. 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 FAA in August said it met its yearly goal of hiring 1,500 controllers but is still about 3,000 controllers behind staffing targets. About a quarter of controllers are not yet fully certified.
A government watchdog report said in June that air traffic operations were at risk. In several places, controllers were working mandatory overtime and six-day work weeks to cover shortages.
If Congress does not separately reauthorize the operations of the FAA, it would prevent the government from collecting airline ticket taxes.
In 2019 during a 35-day shutdown, the number of absences by controllers and TSA officers rose, extending checkpoint wait times at some airports. The FAA was forced to slow air traffic putting pressure on lawmakers to end the standoff.
(Reporting by David Shepardson; editing by Grant McCool)
((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.
|
If Congress does not fund government operations before Saturday, the Federal Aviation Administration (FAA) estimates it would have to furlough more than 17,000 employees and halt the training. Past federal government shutdowns caused "significant delays and longer wait times for travelers", the White House said. Earlier this month, the FAA said it would again extend cuts to minimum flight requirements at congested New York City-area airports through October 2024, citing staffing shortages.
|
By David Shepardson WASHINGTON, Sept 27 (Reuters) - U.S. Transportation Secretary Pete Buttigieg warned on Wednesday that a partial government shutdown could disrupt air travel and said the government would need to furlough 1,000 air traffic controllers in training. Past federal government shutdowns caused "significant delays and longer wait times for travelers", the White House said. Air traffic controllers and Transportation Security Administration (TSA) security officers are among the government workers who would be required to keep working but would not be paid.
|
By David Shepardson WASHINGTON, Sept 27 (Reuters) - U.S. Transportation Secretary Pete Buttigieg warned on Wednesday that a partial government shutdown could disrupt air travel and said the government would need to furlough 1,000 air traffic controllers in training. During a government shutdown, the U.S. air travel system would be "hampered by more flight delays, longer screening lines and setbacks in air travel modernization," the group said. Air traffic controllers and Transportation Security Administration (TSA) security officers are among the government workers who would be required to keep working but would not be paid.
|
By David Shepardson WASHINGTON, Sept 27 (Reuters) - U.S. Transportation Secretary Pete Buttigieg warned on Wednesday that a partial government shutdown could disrupt air travel and said the government would need to furlough 1,000 air traffic controllers in training. Air traffic controllers and Transportation Security Administration (TSA) security officers are among the government workers who would be required to keep working but would not be paid. In 2019 during a 35-day shutdown, the number of absences by controllers and TSA officers rose, extending checkpoint wait times at some airports.
|
2234.0
|
2023-09-27 00:00:00 UTC
|
American Airlines (AAL) Stock Sinks As Market Gains: What You Should Know
|
AAL
|
https://www.nasdaq.com/articles/american-airlines-aal-stock-sinks-as-market-gains%3A-what-you-should-know-7
|
nan
|
nan
|
In the latest trading session, American Airlines (AAL) closed at $12.61, marking a -0.71% move from the previous day. This move lagged the S&P 500's daily gain of 0.02%. At the same time, the Dow lost 0.2%, and the tech-heavy Nasdaq gained 0.22%.
Prior to today's trading, shares of the world's largest airline had lost 14.77% over the past month. This has lagged the Transportation sector's loss of 4.78% and the S&P 500's loss of 2.86% in that time.
Wall Street will be looking for positivity from American Airlines as it approaches its next earnings report date. The company is expected to report EPS of $0.59, down 14.49% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $13.58 billion, up 0.84% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.88 per share and revenue of $53.14 billion. These totals would mark changes of +476% and +8.5%, respectively, from last year.
Any recent changes to analyst estimates for American Airlines should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 9.33% lower within the past month. American Airlines is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that American Airlines has a Forward P/E ratio of 4.4 right now. For comparison, its industry has an average Forward P/E of 7.59, which means American Airlines is trading at a discount to the group.
We can also see that AAL currently has a PEG ratio of 0.08. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. AAL's industry had an average PEG ratio of 0.35 as of yesterday's close.
The Transportation - Airline industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 175, which puts it in the bottom 31% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
Just Released: Zacks Top 10 Stocks for 2023
In addition to the investment ideas discussed above, would you like to know about our 10 top picks for 2023?
From inception in 2012 through November, the Zacks Top 10 Stocks portfolio has tripled the market, gaining an impressive +884.5% versus the S&P 500’s +287.4%. Our Director of Research has now combed through 4,000 companies covered by the Zacks Rank and handpicked the best 10 tickers to buy and hold in 2023. Don’t miss your chance to still be among the first to get in on these just-released stocks.
See New Top 10 Stocks >>
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.
|
In the latest trading session, American Airlines (AAL) closed at $12.61, marking a -0.71% move from the previous day. We can also see that AAL currently has a PEG ratio of 0.08. AAL's industry had an average PEG ratio of 0.35 as of yesterday's close.
|
In the latest trading session, American Airlines (AAL) closed at $12.61, marking a -0.71% move from the previous day. Click to get this free report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. We can also see that AAL currently has a PEG ratio of 0.08.
|
Click to get this free report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. In the latest trading session, American Airlines (AAL) closed at $12.61, marking a -0.71% move from the previous day. We can also see that AAL currently has a PEG ratio of 0.08.
|
In the latest trading session, American Airlines (AAL) closed at $12.61, marking a -0.71% move from the previous day. We can also see that AAL currently has a PEG ratio of 0.08. AAL's industry had an average PEG ratio of 0.35 as of yesterday's close.
|
2235.0
|
2023-09-27 00:00:00 UTC
|
Air Canada to operate as usual during informational picket by pilots union
|
AAL
|
https://www.nasdaq.com/articles/air-canada-to-operate-as-usual-during-informational-picket-by-pilots-union
|
nan
|
nan
|
Sept 27 (Reuters) - Air Canada AC.TO said on Wednesday it will operate the airline as usual when its pilots conduct an informational picket at the company's main hub, the Pearson International Airport, on Friday.
Canadian pilots are pressing for higher salaries and better scheduling after U.S. counterparts at companies including Delta Air Lines DAL.N and American Airlines AAL.O made big gains in deals struck over the last few months.
"As we watch Air Canada cut routes due to an industry-wide shortage of pilots, we encourage them to close the growing wage gap between Canada and the United States," said Charlene Hudy, chair of the Air Canada Master Executive Council, in a statement on Tuesday.
The move also comes amid wider strike action in North America that has seen workers across industries demand better pay and benefits in a tight labor market and as inflation stays high.
Air Canada's estimated 4,500 pilots have received a 2% wage increase per year since 2014. The country's inflation rate was running at 4.3% in March, a 19-month low.
The pilots, represented by the Air Line Pilots Association (ALPA) union, began bargaining for new labor terms this summer, before the end of their decade-long contract.
The company said on Wednesday its contract with ALPA's provisions remains in effect ahead of the picket.
The union had a May deadline for using a type of escape clause that would allow for negotiations this year. The agreement now runs until Sept. 29, although its provisions will apply beyond that date.
(Reporting by Ananta Agarwal in Bengaluru; Editing by Devika Syamnath)
((Ananta.agarwal@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.
|
Canadian pilots are pressing for higher salaries and better scheduling after U.S. counterparts at companies including Delta Air Lines DAL.N and American Airlines AAL.O made big gains in deals struck over the last few months. Sept 27 (Reuters) - Air Canada AC.TO said on Wednesday it will operate the airline as usual when its pilots conduct an informational picket at the company's main hub, the Pearson International Airport, on Friday. The move also comes amid wider strike action in North America that has seen workers across industries demand better pay and benefits in a tight labor market and as inflation stays high.
|
Canadian pilots are pressing for higher salaries and better scheduling after U.S. counterparts at companies including Delta Air Lines DAL.N and American Airlines AAL.O made big gains in deals struck over the last few months. Air Canada's estimated 4,500 pilots have received a 2% wage increase per year since 2014. The pilots, represented by the Air Line Pilots Association (ALPA) union, began bargaining for new labor terms this summer, before the end of their decade-long contract.
|
Canadian pilots are pressing for higher salaries and better scheduling after U.S. counterparts at companies including Delta Air Lines DAL.N and American Airlines AAL.O made big gains in deals struck over the last few months. Sept 27 (Reuters) - Air Canada AC.TO said on Wednesday it will operate the airline as usual when its pilots conduct an informational picket at the company's main hub, the Pearson International Airport, on Friday. "As we watch Air Canada cut routes due to an industry-wide shortage of pilots, we encourage them to close the growing wage gap between Canada and the United States," said Charlene Hudy, chair of the Air Canada Master Executive Council, in a statement on Tuesday.
|
Canadian pilots are pressing for higher salaries and better scheduling after U.S. counterparts at companies including Delta Air Lines DAL.N and American Airlines AAL.O made big gains in deals struck over the last few months. Air Canada's estimated 4,500 pilots have received a 2% wage increase per year since 2014. The company said on Wednesday its contract with ALPA's provisions remains in effect ahead of the picket.
|
2236.0
|
2023-09-27 00:00:00 UTC
|
First Week of February 2024 Options Trading For American Airlines Group (AAL)
|
AAL
|
https://www.nasdaq.com/articles/first-week-of-february-2024-options-trading-for-american-airlines-group-aal
|
nan
|
nan
|
Investors in American Airlines Group Inc (Symbol: AAL) saw new options become available this week, for the February 2024 expiration. One of the key inputs that goes into the price an option buyer is willing to pay, is the time value, so with 142 days until expiration the newly available contracts represent a potential opportunity for sellers of puts or calls to achieve a higher premium than would be available for the contracts with a closer expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new February 2024 contracts and identified one put and one call contract of particular interest.
The put contract at the $7.00 strike price has a current bid of 9 cents. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $7.00, but will also collect the premium, putting the cost basis of the shares at $6.91 (before broker commissions). To an investor already interested in purchasing shares of AAL, that could represent an attractive alternative to paying $12.77/share today.
Because the $7.00 strike represents an approximate 45% 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 1.29% return on the cash commitment, or 3.30% 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 $7.00 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 $1.25. If an investor was to purchase shares of AAL stock at the current price level of $12.77/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 11.59% if the stock gets called away at the February 2024 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 2% 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 44%. 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 9.79% boost of extra return to the investor, or 25.15% annualized, which we refer to as the YieldBoost.
The implied volatility in the put contract example is 65%, while the implied volatility in the call contract example is 39%.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 251 trading day closing values as well as today's price of $12.77) to be 38%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Top YieldBoost Calls of the S&P 500 »
Also see:
Funds Holding CDRE
Top Ten Hedge Funds Holding BFS
HSAC shares outstanding history
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 2% 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 become available this week, for the February 2024 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 2% 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 become available this week, for the February 2024 expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new February 2024 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 2% 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 become available this week, for the February 2024 expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new February 2024 contracts and identified one put and one call contract of particular interest.
|
At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new February 2024 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 2% 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 become available this week, for the February 2024 expiration.
|
2237.0
|
2023-09-27 00:00:00 UTC
|
Indian trade bodies call for two-month halt to rough diamond imports
|
AAL
|
https://www.nasdaq.com/articles/indian-trade-bodies-call-for-two-month-halt-to-rough-diamond-imports
|
nan
|
nan
|
LONDON/NEW DELHI, Sept 27 (Reuters) - India's diamond trade bodies have urged their own members to halt imports of rough diamonds for two months to manage supplies and aid prices amid slow demand, a letter seen by Reuters says.
The letter from five organisations including India's Gems and Jewellery Export Promotion Council (GJEPC) calls for rough diamond imports to be halted between Oct. 15 and Dec. 15, to "better manage the balance between demand and supply, thereby protecting the value of assets and increase consumer confidence."
Exports of gems and jewellery by India - which cuts and polishes 90% of the world's rough diamonds in an industry that employs millions of people - fell nearly 4.4% to $12.4 billion by value between April to August this year, compared with the year before, according to government data.
Exports were affected by relatively muted demand for polished diamonds from major consumers, the United States and China.
Earlier this month, Russian diamond producer Alrosa ALRS.MMsuspended rough diamond supply for September and October after a request from India's GJEPC.
GJEPC has also asked top diamond producer De Beers, a unit of Anglo American AAL.L, to restrict supplies. In response De Beers pledged to "provide complete flexibility to all their clients."
The moves come as the Group of Seven (G7) countries is expected to announce an import ban on Russian diamonds soon to help tighten a squeeze on Russia's capacity to finance the war in Ukraine.
(Reporting by Polina Devitt in London and Shivangi Acharya in New Delhi; Editing by David Holmes)
((shivangi.acharya@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.
|
GJEPC has also asked top diamond producer De Beers, a unit of Anglo American AAL.L, to restrict supplies. The letter from five organisations including India's Gems and Jewellery Export Promotion Council (GJEPC) calls for rough diamond imports to be halted between Oct. 15 and Dec. 15, to "better manage the balance between demand and supply, thereby protecting the value of assets and increase consumer confidence." The moves come as the Group of Seven (G7) countries is expected to announce an import ban on Russian diamonds soon to help tighten a squeeze on Russia's capacity to finance the war in Ukraine.
|
GJEPC has also asked top diamond producer De Beers, a unit of Anglo American AAL.L, to restrict supplies. LONDON/NEW DELHI, Sept 27 (Reuters) - India's diamond trade bodies have urged their own members to halt imports of rough diamonds for two months to manage supplies and aid prices amid slow demand, a letter seen by Reuters says. The letter from five organisations including India's Gems and Jewellery Export Promotion Council (GJEPC) calls for rough diamond imports to be halted between Oct. 15 and Dec. 15, to "better manage the balance between demand and supply, thereby protecting the value of assets and increase consumer confidence."
|
GJEPC has also asked top diamond producer De Beers, a unit of Anglo American AAL.L, to restrict supplies. LONDON/NEW DELHI, Sept 27 (Reuters) - India's diamond trade bodies have urged their own members to halt imports of rough diamonds for two months to manage supplies and aid prices amid slow demand, a letter seen by Reuters says. The letter from five organisations including India's Gems and Jewellery Export Promotion Council (GJEPC) calls for rough diamond imports to be halted between Oct. 15 and Dec. 15, to "better manage the balance between demand and supply, thereby protecting the value of assets and increase consumer confidence."
|
GJEPC has also asked top diamond producer De Beers, a unit of Anglo American AAL.L, to restrict supplies. The letter from five organisations including India's Gems and Jewellery Export Promotion Council (GJEPC) calls for rough diamond imports to be halted between Oct. 15 and Dec. 15, to "better manage the balance between demand and supply, thereby protecting the value of assets and increase consumer confidence." Exports of gems and jewellery by India - which cuts and polishes 90% of the world's rough diamonds in an industry that employs millions of people - fell nearly 4.4% to $12.4 billion by value between April to August this year, compared with the year before, according to government data.
|
2238.0
|
2023-09-27 00:00:00 UTC
|
3 Household Names With RSIs That Scream Oversold
|
AAL
|
https://www.nasdaq.com/articles/3-household-names-with-rsis-that-scream-oversold
|
nan
|
nan
|
With the benchmark S&P 500 index continuing to trade down from its summer highs, there are plenty of stocks feeling the worst for wear. It’s easy for a rally to begin, or indeed for an existing one to be pushed higher, when investors are buying, but the exact opposite is true when they’re selling.
With the S&P 500 itself down more than 5% since the start of the month, it won’t be a surprise to learn that some stocks that were already underperforming have been pushed down even further. For those of our readers who love a bargain, that can open up great opportunities. To find these, a stock’s relative strength index (RSI) can be one of the easiest and clearest signals to use. At the risk of over-simplifying it, imagine the RSI as a tool to help you decide if a stock is overbought, and due a pullback or oversold, and due a bounce back.
It works on a scale of 0 to 100. A reading above 70 suggests overbought conditions, and below 30 suggests oversold conditions. With that in mind, here are three well-known stocks, all household names, with RSIs well below 30.
American Airlines Group Inc (NASDAQ: AAL)
Shares of the airline major have been sliding since July, which is where their post-pandemic rally ran out of steam. Higher fuel costs, the threat of industrial action, and dwindling revenue growth have all combined to send shares down more than 30% in that timeframe. It will be particularly painful for long-term investors who would have been buoyed by the past year's strong traffic numbers but are now looking at their shares trading down towards their Covid lows.
However, the selloff has been steep enough to also send American Airlines RSI down towards lows. It’s currently just around 20, indicating extremely oversold conditions. It’s only come down here a handful of times in the past few years. The most recent was in March 2020, and then it was basically just once a year, stretching back to 2016. While not all of these timestamps signaled the complete reversal of a trend, they did all signal an imminent rally was about to take place, with trough-to-peak gains of between 30-150% following.
There are fundamental headwinds that investors will have to be mindful of with American Airlines, and there are better stocks out there to be buying with a long-term mindset. But from a technical perspective, the signs are pointing towards an aggressive bounce back in the short term, at least.
Shake Shack Inc (NYSE: SHAK)
The shares of ShackBurger HQ have been under pressure since July as well, though for different reasons than American Airlines. It had an earnings report that came in soft against expectations, and its shares are down almost 30% in the past two months.
But the trading activity has been so one way, that is, down, Shake Shack’s RSI is figuratively speaking on the floor. Its current reading of 22 has only been hit on three other occasions since the stock IPO’d in 2016. Average trough-to-peak gains in the stock following each of these occasions was 150%.
In addition to having the technical argument on your side, the team at Northcoast Research has cottoned on to the longer-term buying opportunity opening up as well. They see recent headwinds continuing to dissipate through the rest of the year and had no problem giving shares a price target of $85. That’s pointing to an upside of at least 50% from where they were trading on Tuesday morning.
Boeing Co (NYSE: BA)
Boeing shares managed to rally into August before starting their current slide. They’d been adding gains all year, to be fair, with August’s peak just the latest milestone in a rally that dates back eighteen months. But a 20% slide since then has them back where they started the year, with a long string of red days along the way.
The good news is, though, that their current RSI reading of 24 was last seen in May 2022, right before the stock started its multi-month run to last month’s high. Along the way, they tacked on over 100% in value. If this is to be the spot where the bears run out of steam, and the bulls take control once again, it would have a nice ring to it.
The team at Wells Fargo thinks we could be looking at the low soon. Last week, they increased their Boeing allocation in the company’s Signature Picks list, indicating the time could be ripe for bargain hunters to also start backing up the truck.
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 (NASDAQ: AAL) Shares of the airline major have been sliding since July, which is where their post-pandemic rally ran out of steam. It will be particularly painful for long-term investors who would have been buoyed by the past year's strong traffic numbers but are now looking at their shares trading down towards their Covid lows. Shake Shack Inc (NYSE: SHAK) The shares of ShackBurger HQ have been under pressure since July as well, though for different reasons than American Airlines.
|
American Airlines Group Inc (NASDAQ: AAL) Shares of the airline major have been sliding since July, which is where their post-pandemic rally ran out of steam. A reading above 70 suggests overbought conditions, and below 30 suggests oversold conditions. However, the selloff has been steep enough to also send American Airlines RSI down towards lows.
|
American Airlines Group Inc (NASDAQ: AAL) Shares of the airline major have been sliding since July, which is where their post-pandemic rally ran out of steam. At the risk of over-simplifying it, imagine the RSI as a tool to help you decide if a stock is overbought, and due a pullback or oversold, and due a bounce back. The good news is, though, that their current RSI reading of 24 was last seen in May 2022, right before the stock started its multi-month run to last month’s high.
|
American Airlines Group Inc (NASDAQ: AAL) Shares of the airline major have been sliding since July, which is where their post-pandemic rally ran out of steam. There are fundamental headwinds that investors will have to be mindful of with American Airlines, and there are better stocks out there to be buying with a long-term mindset. Boeing Co (NYSE: BA) Boeing shares managed to rally into August before starting their current slide.
|
2239.0
|
2023-09-27 00:00:00 UTC
|
Peru seeks mining investment revival with pledge to end 'chaos, disorder'
|
AAL
|
https://www.nasdaq.com/articles/peru-seeks-mining-investment-revival-with-pledge-to-end-chaos-disorder
|
nan
|
nan
|
By Marco Aquino
LIMA, Sept 27 (Reuters) - Peru is looking to put the "chaos" of months-long protests earlier this year behind it to revitalize flagging mining investment in the world's no. 2 copper producing nation, even as executives demand more stablity to boost spending.
As a mining conference in the southern Andean region of Arequipa got started this week, Prime Minister Alberto Otarola addressed concerns about political instability and protests that have led to an expected 18% drop in mining investment this year.
"We are not going to allow the country to fall into chaos, disorder and insecurity," Otarola told hundreds of gathered mining business leaders, adding the government was also working to streamline environmental permitting regulations.
In interviews with Reuters, senior executives said that while things had improved since major nationwide protests at the start of the year, governance remained weak, while unclear rules and red tape for issues such as using contractors and securing environmental permits remained an obstacle to new investment.
Copper output has rebounded this year, but sliding investment in the Andean country, which has had six presidents in the last five years, has put production and the wider economy at risk. Mining makes up 60% of Peru's total exports.
"There is concern because there is not much clarity regarding where the new government is going," said Raúl Jacob, vice president of finance at Grupo Mexico's GMEXICOB.MX Southern Copper SCCO.N, Peru's third largest copper producer.
He cited uncertainty around a law that limited the use of contractors that mining firms used, in part, to cut costs, which he said the government should repeal.
Peru's president Dina Boluarte took office late last year after former leader Pedro Castillo was impeached following an attempt to shutter Congress illegally. That sparked off months of deadly protests. Boluarte herself has weak popular support.
At the mining conference, Minister of Energy and Mines Oscar Vera argued that the government had "unlocked" nine projects this year, although all are expansions or medium-sized ventures.
The last major investment in Peru was Anglo American AAL.L's $5 billion Quellaveco project, which came online last year and has helped buffer production figures.
Victor Gobitz, president of Peru's biggest copper mine Antamina - controlled by Glencore GLEN.L, BHP BHP.AX, Teck TECKb.TO and Mitsubishi 8058.T - said the constant political crisis mainly hurt investment in "greenfield" copper sites.
"For new mines, political risk and the lack of a clear mining policy is key," Gobitz, also the head of the main mining chamber, told Reuters by telephone, citing long waits to obtain mining concessions and risks linked to local community protests.
Gobitz said the government needed more "agility" to approve expansion projects, and should focus more on developing local areas around mines to avoid conflicts, often sparked by anger at mineral riches bypassing local communities.
"Peru has been growing and that is good, but at the institutional level we have not grown at the same speed, with the level of political maturity," he said. "We have a fragmented political system, which takes its toll on the entire country."
Peru: Mining Investment https://tmsnrt.rs/48eqx3O
Peru: Mining Investment (Interactive) https://tmsnrt.rs/3PAINx6
Peru: copper producer No. 2, for now! https://tmsnrt.rs/3RhwFlS
Peru: copper producer No. 2, for now! (Interactive) https://tmsnrt.rs/44LABOV
(Reporting by Marco Aquino; Editing by Adam Jourdan and Sonali Paul)
((adam.jourdan@thomsonreuters.com; +54 1155446882; Reuters Messaging: adam.jourdan.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 last major investment in Peru was Anglo American AAL.L's $5 billion Quellaveco project, which came online last year and has helped buffer production figures. By Marco Aquino LIMA, Sept 27 (Reuters) - Peru is looking to put the "chaos" of months-long protests earlier this year behind it to revitalize flagging mining investment in the world's no. "We are not going to allow the country to fall into chaos, disorder and insecurity," Otarola told hundreds of gathered mining business leaders, adding the government was also working to streamline environmental permitting regulations.
|
The last major investment in Peru was Anglo American AAL.L's $5 billion Quellaveco project, which came online last year and has helped buffer production figures. In interviews with Reuters, senior executives said that while things had improved since major nationwide protests at the start of the year, governance remained weak, while unclear rules and red tape for issues such as using contractors and securing environmental permits remained an obstacle to new investment. Peru: Mining Investment https://tmsnrt.rs/48eqx3O Peru: Mining Investment (Interactive) https://tmsnrt.rs/3PAINx6 Peru: copper producer No.
|
The last major investment in Peru was Anglo American AAL.L's $5 billion Quellaveco project, which came online last year and has helped buffer production figures. As a mining conference in the southern Andean region of Arequipa got started this week, Prime Minister Alberto Otarola addressed concerns about political instability and protests that have led to an expected 18% drop in mining investment this year. "For new mines, political risk and the lack of a clear mining policy is key," Gobitz, also the head of the main mining chamber, told Reuters by telephone, citing long waits to obtain mining concessions and risks linked to local community protests.
|
The last major investment in Peru was Anglo American AAL.L's $5 billion Quellaveco project, which came online last year and has helped buffer production figures. Copper output has rebounded this year, but sliding investment in the Andean country, which has had six presidents in the last five years, has put production and the wider economy at risk. "There is concern because there is not much clarity regarding where the new government is going," said Raúl Jacob, vice president of finance at Grupo Mexico's GMEXICOB.MX Southern Copper SCCO.N, Peru's third largest copper producer.
|
2240.0
|
2023-09-26 00:00:00 UTC
|
Bernstein Maintains American Airlines Group (AAL) Outperform Recommendation
|
AAL
|
https://www.nasdaq.com/articles/bernstein-maintains-american-airlines-group-aal-outperform-recommendation
|
nan
|
nan
|
Fintel reports that on September 26, 2023, Bernstein maintained coverage of American Airlines Group (NASDAQ:AAL) with a Outperform recommendation.
Analyst Price Forecast Suggests 41.36% Upside
As of August 31, 2023, the average one-year price target for American Airlines Group is 18.25. The forecasts range from a low of 11.11 to a high of $27.30. The average price target represents an increase of 41.36% from its latest reported closing price of 12.91.
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 1062 funds or institutions reporting positions in American Airlines Group. This is an increase of 32 owner(s) or 3.11% in the last quarter. Average portfolio weight of all funds dedicated to AAL is 0.15%, an increase of 9.36%. Total shares owned by institutions increased in the last three months by 1.20% to 416,991K shares.
The put/call ratio of AAL is 3.69, 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 September 26, 2023, Bernstein maintained coverage of American Airlines Group (NASDAQ:AAL) with a Outperform recommendation. Average portfolio weight of all funds dedicated to AAL is 0.15%, an increase of 9.36%. The put/call ratio of AAL is 3.69, indicating a bearish outlook.
|
Fintel reports that on September 26, 2023, Bernstein maintained coverage of American Airlines Group (NASDAQ:AAL) with a Outperform recommendation. Average portfolio weight of all funds dedicated to AAL is 0.15%, an increase of 9.36%. The put/call ratio of AAL is 3.69, indicating a bearish outlook.
|
Fintel reports that on September 26, 2023, Bernstein maintained coverage of American Airlines Group (NASDAQ:AAL) with a Outperform recommendation. Average portfolio weight of all funds dedicated to AAL is 0.15%, an increase of 9.36%. The put/call ratio of AAL is 3.69, indicating a bearish outlook.
|
Fintel reports that on September 26, 2023, Bernstein maintained coverage of American Airlines Group (NASDAQ:AAL) with a Outperform recommendation. Average portfolio weight of all funds dedicated to AAL is 0.15%, an increase of 9.36%. The put/call ratio of AAL is 3.69, indicating a bearish outlook.
|
2241.0
|
2023-09-26 00:00:00 UTC
|
Berenberg Maintains American Airlines Group (AAL) Outperform Recommendation
|
AAL
|
https://www.nasdaq.com/articles/berenberg-maintains-american-airlines-group-aal-outperform-recommendation
|
nan
|
nan
|
Fintel reports that on September 26, 2023, Berenberg maintained coverage of American Airlines Group (NASDAQ:AAL) with a Outperform recommendation.
Analyst Price Forecast Suggests 41.36% Upside
As of August 31, 2023, the average one-year price target for American Airlines Group is 18.25. The forecasts range from a low of 11.11 to a high of $27.30. The average price target represents an increase of 41.36% from its latest reported closing price of 12.91.
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 1062 funds or institutions reporting positions in American Airlines Group. This is an increase of 32 owner(s) or 3.11% in the last quarter. Average portfolio weight of all funds dedicated to AAL is 0.15%, an increase of 9.36%. Total shares owned by institutions increased in the last three months by 1.20% to 416,991K shares.
The put/call ratio of AAL is 3.69, 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 September 26, 2023, Berenberg maintained coverage of American Airlines Group (NASDAQ:AAL) with a Outperform recommendation. Average portfolio weight of all funds dedicated to AAL is 0.15%, an increase of 9.36%. The put/call ratio of AAL is 3.69, indicating a bearish outlook.
|
Fintel reports that on September 26, 2023, Berenberg maintained coverage of American Airlines Group (NASDAQ:AAL) with a Outperform recommendation. Average portfolio weight of all funds dedicated to AAL is 0.15%, an increase of 9.36%. The put/call ratio of AAL is 3.69, indicating a bearish outlook.
|
Fintel reports that on September 26, 2023, Berenberg maintained coverage of American Airlines Group (NASDAQ:AAL) with a Outperform recommendation. Average portfolio weight of all funds dedicated to AAL is 0.15%, an increase of 9.36%. The put/call ratio of AAL is 3.69, indicating a bearish outlook.
|
Fintel reports that on September 26, 2023, Berenberg maintained coverage of American Airlines Group (NASDAQ:AAL) with a Outperform recommendation. Average portfolio weight of all funds dedicated to AAL is 0.15%, an increase of 9.36%. The put/call ratio of AAL is 3.69, indicating a bearish outlook.
|
2242.0
|
2023-09-26 00:00:00 UTC
|
First Week of May 2024 Options Trading For American Airlines Group (AAL)
|
AAL
|
https://www.nasdaq.com/articles/first-week-of-may-2024-options-trading-for-american-airlines-group-aal
|
nan
|
nan
|
Investors in American Airlines Group Inc (Symbol: AAL) saw new options begin trading this week, for the May 2024 expiration. One of the key inputs that goes into the price an option buyer is willing to pay, is the time value, so with 234 days until expiration the newly trading contracts represent a possible opportunity for sellers of puts or calls to achieve a higher premium than would be available for the contracts with a closer expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new May 2024 contracts and identified one put and one call contract of particular interest.
The put contract at the $9.00 strike price has a current bid of 36 cents. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $9.00, but will also collect the premium, putting the cost basis of the shares at $8.64 (before broker commissions). To an investor already interested in purchasing shares of AAL, that could represent an attractive alternative to paying $12.98/share today.
Because the $9.00 strike represents an approximate 31% 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 93%. 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 4.00% return on the cash commitment, or 6.24% 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 $9.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $14.00 strike price has a current bid of $1.34. If an investor was to purchase shares of AAL stock at the current price level of $12.98/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $14.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 18.18% if the stock gets called away at the May 2024 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 $14.00 strike highlighted in red:
Considering the fact that the $14.00 strike represents an approximate 8% 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 10.32% boost of extra return to the investor, or 16.10% annualized, which we refer to as the YieldBoost.
The implied volatility in the put contract example is 52%, while the implied volatility in the call contract example is 38%.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 251 trading day closing values as well as today's price of $12.98) to be 38%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Top YieldBoost Calls of the S&P 500 »
Also see:
TLGA YTD Return
OBDC YTD Return
Top Ten Hedge Funds Holding PAMC
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 $14.00 strike highlighted in red: Considering the fact that the $14.00 strike represents an approximate 8% 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 this week, for the May 2024 expiration.
|
Below is a chart showing AAL's trailing twelve month trading history, with the $14.00 strike highlighted in red: Considering the fact that the $14.00 strike represents an approximate 8% 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 this week, for the May 2024 expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new May 2024 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 $14.00 strike highlighted in red: Considering the fact that the $14.00 strike represents an approximate 8% 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 this week, for the May 2024 expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new May 2024 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 $14.00 strike highlighted in red: Considering the fact that the $14.00 strike represents an approximate 8% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in American Airlines Group Inc (Symbol: AAL) saw new options begin trading this week, for the May 2024 expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new May 2024 contracts and identified one put and one call contract of particular interest.
|
2243.0
|
2023-09-25 00:00:00 UTC
|
Stocks Mixed as Global Bond Yields Climb
|
AAL
|
https://www.nasdaq.com/articles/stocks-mixed-as-global-bond-yields-climb
|
nan
|
nan
|
The S&P 500 Index ($SPX) (SPY) today is up +0.23%, the Dow Jones Industrials Index ($DOWI) (DIA) is down -0.02%, and the Nasdaq ($IUXX) (QQQ) is up +0.26%.
Stocks are mixed, with the S&P 500 earlier in the day falling to a 3-1/2 month low, the Dow Jones Industrials posting a 2-1/2 month low, and the Nasdaq 100 dropping to a 5-week low. There is speculation global central banks will keep interest rates higher for longer to combat inflation. European stocks are under pressure after the 10-year German bund yield jumped to a 12-year high today of 2.812%, and the 10-year T-note yield rose to a new 16-year high of 4.531%. The stock market is also concerned about a possible U.S. government shutdown this Sunday when the fiscal year begins on Oct 1.
U.S. and European stocks are also under pressure on concerns that China’s property debt crisis is worsening after China Evergrande Group canceled a creditor meeting today and said it must revisit its restructuring plan. The ongoing debt crisis in China threatens to derail the country’s growth prospects and drag down the global economy.
Today’s U.S. economic news was weaker than expected and bearish for stocks. The Aug Chicago Fed national activity index fell -0.23 -0.16, weaker than expectations of 0.10. Also, the Aug Dallas Fed manufacturing outlook level of general business activity unexpectedly fell -0.9 to -18.1, weaker than expectations of an increase to -14.0.
Morgan Stanley warned today that risks are rising for U.S. consumer stocks on "slowing consumer spending, resumption of student loan payments, rising delinquencies in certain household cohorts, higher gasoline prices, and weakening data in the housing sector." Also, 44% of stocks in the consumer discretionary sector are trading below their 200-day moving averages, pointing to additional weakness.
The markets are discounting a 19% chance that the FOMC will raise the funds rate by +25 bp at the next FOMC meeting that ends on November 1, and a 44% 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 today are higher. The 10-year T-note yield rose to a new 16-year high of 4.531% and is up +8.3 bp at 4.517%. The 10-year German bund yield climbed to a 12-year high of 2.812% and is up +5.7 bp at 2.797%. The 10-year UK gilt yield is up +8.51bp at 4.3294%.
Overseas stock markets are mixed today. The Euro Stoxx 50 is down -1.31%. China’s Shanghai Composite Index closed -0.54%. Japan’s Nikkei 225 today closed +0.85%.
Today’s stock movers…
Airline stocks are under pressure today on signs of weakened travel demand after data from Bloomberg Second Measure shows the observed sales decline among airlines for the week ending Sep 17 averages more than -7% from a year earlier. As a result, United Airlines Holdings (UAL), American Airlines Group (AAL), Delta Air Lines (DAL), Alaska Air Group (ALK), and Southwest Airlines (LUV) are down more than -1%.
Cruise line operators are falling on rising interest rates today as the 10-year T-note yield rose to a 16-year high. The higher rates may reduce the profitability of the companies that rely on borrowing costs to finance their operations and fleet expansion. As a result, Carnival (CCL) is down more than -2% to lead losers in the S&P 500. Also, Norwegian Cruise Line Holdings (NCLH) and Royal Caribbean Cruises (RCL) are down more than -1%.
Footwear companies are retreating today after Jeffries downgraded Nike, Foot Locker, and Urban Outfitters to hold from buy, citing slower spending by U.S. students and ongoing Chinese headwinds. As a result, Foot Locker (FL) is down more than -4%, Urban Outfitters (URBN) is down more than -1%, and Nike (NKE) is down -0.5%.
Morphic Holding (MORF) is down more than -14% after BTIG downgraded the stock to neutral from buy.
Dexcom (DXCM) is down more than -1% after a weekend article in Barron’s said the emergence of GLP-1 drugs to treat obesity has already started to hurt shares of companies treating obesity complications.
MarketAxcess Holdings (MKTX) is down more than -1% after Citigroup placed the stock on a 30-day downside catalyst watch, citing its Q3 EPS estimate that is already 13% below consensus.
HP Inc (HPQ) is down -0.5% after an SEC filing showed holder Berkshire Hathaway sold $129 million of shares over the past three sessions.
Sealed Air Corp (SEE) is up more than +3% to lead gainers in the S&P 500 after Citigroup upgraded the stock to buy from neutral.
Nvidia (NVDA) is up more than +1% after Morgan Stanley said the recent drop in the stock has created “another buying opportunity.”
Amazon.com (AMZN) is up more than +1% after the company said it would invest as much as $4 billion in AI startup Anthropic and Wedbush said that investment “should ease investor concerns that Amazon has been less proactive than its peers in its approach to generative AI.”
Dow Inc (DOW) is up more than +1% to lead gainers in the Dow Jones Industrials after JPMorgan Chase upgraded the stock to overweight from neutral with a price target of $55.
CarMax (KMX) is up more than +1% after Wedbush upgraded the stock to outperform from neutral with a price target of $90.
Steel Dynamics (STLD) and Cleveland-Cliffs (CLF) are up more than +1% after Citigroup upgraded both stock to buy from neutral.
Across the markets…
December 10-year T-notes (ZNZ23) today are down -12 ticks, and the 10-year T-note yield is up +8.3 bp at 4.517%. Dec T-notes today sank to a 16-year nearest-future slow, and the 10-year T-note yield jumped to a 16-year high at 4.531%. Carryover pressure from a slide in German bunds is weighing on T-note prices as the 10-year German bund yield today rose to a 12-year high of 2.812%. Also, supply pressures are undercutting T-note prices as the Treasury readies to sell $158 billion of T-notes and floating-rate notes this week.
The dollar index (DXY00) today is up by +0.26% and posted a new 6-1/2 month high. The dollar has support today on rising bond yields, with the 10-year T-note climbing to a 16-year high. Also, the weakness in stocks today has boosted the liquidity demand for the dollar. In addition, the dollar has carryover support from last Wednesday when the Fed signaled one more +25 bp rate hike this year and projected the fed funds rate next year +50 bp higher than they projected back in June.
EUR/USD (^EURUSD) today is down by -0.54% and dropped to a 6-1/2 month low. Dollar strength today is weighing on the euro along with dovish ECB comments. ECB Governing Council member Kazaks said the ECB's 25 bp rate hike this month may allow for a pause at its October meeting. Losses in EUR/USD were limited after the Sep German IFO business climate fell less than expected.
ECB President Lagarde said, "Our future decisions will ensure that the key ECB interest rates will be set at sufficiently restrictive levels for as long as necessary."
ECB Governing Council member Kazaks said the ECB's "very appropriate" 25 bp interest rate hike in September may allow for a pause in October.
The Sep German IFO business climate fell by -0.1 to 85.7, stronger than expectations of 85.2.
USD/JPY (^USDJPY) is up +0.28%. The yen today tumbled to a 10-3/4 month low against the dollar. The yen is under pressure today on dovish comments from BOJ Governor Ueda, who said the BOJ needs to continue with monetary easing as uncertainties around wage gains and inflation are high, and therefore, the goal of achieving 2% inflation accompanied by wage gains hasn’t yet “come in sight.”
October gold (GCV3) today is down -3.2 (-0.17%), and Dec silver (SIZ23) is down -0.189 (-0.79%). Precious metals prices today are moderately lower. Today’s rally in the dollar index to a 6-1/2 month high is undercutting metals prices. Also, soaring global government bond yields are bearish for precious metals after the 10-year German bund yield today rose to a 12-year high and the 10-year T-note yield rose to a 16-year high. Losses in precious metals are limited as weakness in stocks today has boosted some safe-haven demand for precious metals.
More Stock Market News from Barchart
2 Undervalued Dividend Stocks with 5% Yields To Buy Near 52-Week Lows
Markets Today: Stocks Lower on Concern about Hawkish Global Central Banks
Market Heat Check: Top 10 Stocks Riding High on Implied Volatility
Stocks Set to Open Lower as Investors Await Key U.S. Inflation Data and Fed Speak
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), American Airlines Group (AAL), Delta Air Lines (DAL), Alaska Air Group (ALK), and Southwest Airlines (LUV) are down more than -1%. Also, the Aug Dallas Fed manufacturing outlook level of general business activity unexpectedly fell -0.9 to -18.1, weaker than expectations of an increase to -14.0. Footwear companies are retreating today after Jeffries downgraded Nike, Foot Locker, and Urban Outfitters to hold from buy, citing slower spending by U.S. students and ongoing Chinese headwinds.
|
As a result, United Airlines Holdings (UAL), American Airlines Group (AAL), Delta Air Lines (DAL), Alaska Air Group (ALK), and Southwest Airlines (LUV) are down more than -1%. Footwear companies are retreating today after Jeffries downgraded Nike, Foot Locker, and Urban Outfitters to hold from buy, citing slower spending by U.S. students and ongoing Chinese headwinds. Also, soaring global government bond yields are bearish for precious metals after the 10-year German bund yield today rose to a 12-year high and the 10-year T-note yield rose to a 16-year high.
|
As a result, United Airlines Holdings (UAL), American Airlines Group (AAL), Delta Air Lines (DAL), Alaska Air Group (ALK), and Southwest Airlines (LUV) are down more than -1%. European stocks are under pressure after the 10-year German bund yield jumped to a 12-year high today of 2.812%, and the 10-year T-note yield rose to a new 16-year high of 4.531%. Also, soaring global government bond yields are bearish for precious metals after the 10-year German bund yield today rose to a 12-year high and the 10-year T-note yield rose to a 16-year high.
|
As a result, United Airlines Holdings (UAL), American Airlines Group (AAL), Delta Air Lines (DAL), Alaska Air Group (ALK), and Southwest Airlines (LUV) are down more than -1%. Cruise line operators are falling on rising interest rates today as the 10-year T-note yield rose to a 16-year high. Dollar strength today is weighing on the euro along with dovish ECB comments.
|
2244.0
|
2023-09-25 00:00:00 UTC
|
Stocks Under Pressure as Global Bond Yields Climb
|
AAL
|
https://www.nasdaq.com/articles/stocks-under-pressure-as-global-bond-yields-climb
|
nan
|
nan
|
The S&P 500 Index ($SPX) (SPY) today is down -0.14%, the Dow Jones Industrials Index ($DOWI) (DIA) is down -0.38%, and the Nasdaq 100 Index ($IUXX) (QQQ) is down -0.17%.
Stocks this morning are moderately lower, with the S&P 500 falling to a 3-1/2 month low, the Dow Jones Industrials posting a 2-1/2 month low, and the Nasdaq 100 dropping to a 5-week low. Stocks are falling today on speculation global central banks will keep interest rates higher for longer to combat inflation. European stocks are under pressure after the 10-year German bund yield jumped to a 12-year high today of 2.812%, and the 10-year T-note yield rose to a new 16-year high of 4.531%. The stock market is also concerned about a possible U.S. government shutdown this Sunday when the fiscal year begins on Oct 1.
U.S. and European stocks are also under pressure on concerns that China’s property debt crisis is worsening after China Evergrande Group canceled a creditor meeting today and said it must revisit its restructuring plan. The ongoing debt crisis in China threatens to derail the country’s growth prospects and drag down the global economy.
Today’s U.S. economic news was weaker than expected and bearish for stocks. The Aug Chicago Fed national activity index fell -0.23 -0.16, weaker than expectations of 0.10. Also, the Aug Dallas Fed manufacturing outlook level of general business activity unexpectedly fell -0.9 to -18.1, weaker than expectations of an increase to -14.0.
Morgan Stanley warned today that risks are rising for U.S. consumer stocks on "slowing consumer spending, resumption of student loan payments, rising delinquencies in certain household cohorts, higher gasoline prices, and weakening data in the housing sector." Also, 44% of stocks in the consumer discretionary sector are trading below their 200-day moving averages, pointing to additional weakness.
The markets are discounting a 19% chance that the FOMC will raise the funds rate by +25 bp at the next FOMC meeting that ends on November 1, and a 44% 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 today are higher. The 10-year T-note yield rose to a new 16-year high of 4.531% and is up +8.3 bp at 4.517%. The 10-year German bund yield climbed to a 12-year high of 2.812% and is up +5.7 bp at 2.797%. The 10-year UK gilt yield is up +8.51bp at 4.3294%.
Overseas stock markets are mixed today. The Euro Stoxx 50 is down -1.31%. China’s Shanghai Composite Index closed -0.54%. Japan’s Nikkei 225 today closed +0.85%.
Today’s stock movers…
Airline stocks are under pressure today on signs of weakened travel demand after data from Bloomberg Second Measure shows the observed sales decline among airlines for the week ending Sep 17 averages more than -7% from a year earlier. As a result, United Airlines Holdings (UAL), American Airlines Group (AAL), Delta Air Lines (DAL), Alaska Air Group (ALK), and Southwest Airlines (LUV) are down more than -1%.
Cruise line operators are falling on rising interest rates today as the 10-year T-note yield rose to a 16-year high. The higher rates may reduce the profitability of the companies that rely on borrowing costs to finance their operations and fleet expansion. As a result, Carnival (CCL) is down more than -2% to lead losers in the S&P 500. Also, Norwegian Cruise Line Holdings (NCLH) and Royal Caribbean Cruises (RCL) are down more than -1%.
Footwear companies are retreating today after Jeffries downgraded Nike, Foot Locker, and Urban Outfitters to hold from buy, citing slower spending by U.S. students and ongoing Chinese headwinds. As a result, Foot Locker (FL) is down more than -4%, Urban Outfitters (URBN) is down more than -1%, and Nike (NKE) is down -0.5%.
Morphic Holding (MORF) is down more than -14% after BTIG downgraded the stock to neutral from buy.
Dexcom (DXCM) is down more than -1% after a weekend article in Barron’s said the emergence of GLP-1 drugs to treat obesity has already started to hurt shares of companies treating obesity complications.
MarketAxcess Holdings (MKTX) is down more than -1% after Citigroup placed the stock on a 30-day downside catalyst watch, citing its Q3 EPS estimate that is already 13% below consensus.
HP Inc (HPQ) is down -0.5% after an SEC filing showed holder Berkshire Hathaway sold $129 million of shares over the past three sessions.
Sealed Air Corp (SEE) is up more than +3% to lead gainers in the S&P 500 after Citigroup upgraded the stock to buy from neutral.
Nvidia (NVDA) is up more than +1% after Morgan Stanley said the recent drop in the stock has created “another buying opportunity.”
Amazon.com (AMZN) is up more than +1% after the company said it would invest as much as $4 billion in AI startup Anthropic and Wedbush said that investment “should ease investor concerns that Amazon has been less proactive than its peers in its approach to generative AI.”
Dow Inc (DOW) is up more than +1% to lead gainers in the Dow Jones Industrials after JPMorgan Chase upgraded the stock to overweight from neutral with a price target of $55.
CarMax (KMX) is up more than +1% after Wedbush upgraded the stock to outperform from neutral with a price target of $90.
Steel Dynamics (STLD) and Cleveland-Cliffs (CLF) are up more than +1% after Citigroup upgraded both stock to buy from neutral.
Across the markets…
December 10-year T-notes (ZNZ23) today are down -12 ticks, and the 10-year T-note yield is up +8.3 bp at 4.517%. Dec T-notes today sank to a 16-year nearest-future slow, and the 10-year T-note yield jumped to a 16-year high at 4.531%. Carryover pressure from a slide in German bunds is weighing on T-note prices as the 10-year German bund yield today rose to a 12-year high of 2.812%. Also, supply pressures are undercutting T-note prices as the Treasury readies to sell $158 billion of T-notes and floating-rate notes this week.
The dollar index (DXY00) today is up by +0.26% and posted a new 6-1/2 month high. The dollar has support today on rising bond yields, with the 10-year T-note climbing to a 16-year high. Also, the weakness in stocks today has boosted the liquidity demand for the dollar. In addition, the dollar has carryover support from last Wednesday when the Fed signaled one more +25 bp rate hike this year and projected the fed funds rate next year +50 bp higher than they projected back in June.
EUR/USD (^EURUSD) today is down by -0.54% and dropped to a 6-1/2 month low. Dollar strength today is weighing on the euro along with dovish ECB comments. ECB Governing Council member Kazaks said the ECB's 25 bp rate hike this month may allow for a pause at its October meeting. Losses in EUR/USD were limited after the Sep German IFO business climate fell less than expected.
ECB President Lagarde said, "Our future decisions will ensure that the key ECB interest rates will be set at sufficiently restrictive levels for as long as necessary."
ECB Governing Council member Kazaks said the ECB's "very appropriate" 25 bp interest rate hike in September may allow for a pause in October.
The Sep German IFO business climate fell by -0.1 to 85.7, stronger than expectations of 85.2.
USD/JPY (^USDJPY) is up +0.28%. The yen today tumbled to a 10-3/4 month low against the dollar. The yen is under pressure today on dovish comments from BOJ Governor Ueda, who said the BOJ needs to continue with monetary easing as uncertainties around wage gains and inflation are high, and therefore, the goal of achieving 2% inflation accompanied by wage gains hasn’t yet “come in sight.”
October gold (GCV3) today is down -3.2 (-0.17%), and Dec silver (SIZ23) is down -0.189 (-0.79%). Precious metals prices today are moderately lower. Today’s rally in the dollar index to a 6-1/2 month high is undercutting metals prices. Also, soaring global government bond yields are bearish for precious metals after the 10-year German bund yield today rose to a 12-year high and the 10-year T-note yield rose to a 16-year high. Losses in precious metals are limited as weakness in stocks today has boosted some safe-haven demand for precious metals.
More Stock Market News from Barchart
2 Undervalued Dividend Stocks with 5% Yields To Buy Near 52-Week Lows
Markets Today: Stocks Lower on Concern about Hawkish Global Central Banks
Market Heat Check: Top 10 Stocks Riding High on Implied Volatility
Stocks Set to Open Lower as Investors Await Key U.S. Inflation Data and Fed Speak
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), American Airlines Group (AAL), Delta Air Lines (DAL), Alaska Air Group (ALK), and Southwest Airlines (LUV) are down more than -1%. Also, the Aug Dallas Fed manufacturing outlook level of general business activity unexpectedly fell -0.9 to -18.1, weaker than expectations of an increase to -14.0. Footwear companies are retreating today after Jeffries downgraded Nike, Foot Locker, and Urban Outfitters to hold from buy, citing slower spending by U.S. students and ongoing Chinese headwinds.
|
As a result, United Airlines Holdings (UAL), American Airlines Group (AAL), Delta Air Lines (DAL), Alaska Air Group (ALK), and Southwest Airlines (LUV) are down more than -1%. Footwear companies are retreating today after Jeffries downgraded Nike, Foot Locker, and Urban Outfitters to hold from buy, citing slower spending by U.S. students and ongoing Chinese headwinds. Also, soaring global government bond yields are bearish for precious metals after the 10-year German bund yield today rose to a 12-year high and the 10-year T-note yield rose to a 16-year high.
|
As a result, United Airlines Holdings (UAL), American Airlines Group (AAL), Delta Air Lines (DAL), Alaska Air Group (ALK), and Southwest Airlines (LUV) are down more than -1%. European stocks are under pressure after the 10-year German bund yield jumped to a 12-year high today of 2.812%, and the 10-year T-note yield rose to a new 16-year high of 4.531%. Also, soaring global government bond yields are bearish for precious metals after the 10-year German bund yield today rose to a 12-year high and the 10-year T-note yield rose to a 16-year high.
|
As a result, United Airlines Holdings (UAL), American Airlines Group (AAL), Delta Air Lines (DAL), Alaska Air Group (ALK), and Southwest Airlines (LUV) are down more than -1%. Cruise line operators are falling on rising interest rates today as the 10-year T-note yield rose to a 16-year high. Dollar strength today is weighing on the euro along with dovish ECB comments.
|
2245.0
|
2023-09-25 00:00:00 UTC
|
First Week of January 2026 Options Trading For American Airlines Group (AAL)
|
AAL
|
https://www.nasdaq.com/articles/first-week-of-january-2026-options-trading-for-american-airlines-group-aal
|
nan
|
nan
|
Investors in American Airlines Group Inc (Symbol: AAL) saw new options begin trading this week, for the January 2026 expiration. One of the key inputs that goes into the price an option buyer is willing to pay, is the time value, so with 844 days until expiration the newly trading contracts represent a possible opportunity for sellers of puts or calls to achieve a higher premium than would be available for the contracts with a closer expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new January 2026 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 $2.17. 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 $9.83 (before broker commissions). To an investor already interested in purchasing shares of AAL, that could represent an attractive alternative to paying $12.76/share today.
Because the $12.00 strike represents an approximate 6% 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 70%. 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 18.08% return on the cash commitment, or 7.82% 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 $15.00 strike price has a current bid of $2.65. If an investor was to purchase shares of AAL stock at the current price level of $12.76/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $15.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 38.32% if the stock gets called away at the January 2026 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 $15.00 strike highlighted in red:
Considering the fact that the $15.00 strike represents an approximate 18% 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 40%. 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 20.77% boost of extra return to the investor, or 8.98% annualized, which we refer to as the YieldBoost.
The implied volatility in the put contract example is 50%, while the implied volatility in the call contract example is 39%.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 250 trading day closing values as well as today's price of $12.76) to be 38%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Top YieldBoost Calls of the S&P 500 »
Also see:
Institutional Holders of DRTS
Top Ten Hedge Funds Holding VNLA
BWMC YTD Return
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 $15.00 strike highlighted in red: Considering the fact that the $15.00 strike represents an approximate 18% 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 this week, for the January 2026 expiration.
|
Below is a chart showing AAL's trailing twelve month trading history, with the $15.00 strike highlighted in red: Considering the fact that the $15.00 strike represents an approximate 18% 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 this week, for the January 2026 expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new January 2026 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 $15.00 strike highlighted in red: Considering the fact that the $15.00 strike represents an approximate 18% 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 this week, for the January 2026 expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new January 2026 contracts and identified one put and one call contract of particular interest.
|
At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new January 2026 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 $15.00 strike highlighted in red: Considering the fact that the $15.00 strike represents an approximate 18% 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 this week, for the January 2026 expiration.
|
2246.0
|
2023-09-21 00:00:00 UTC
|
Interesting AAL Put And Call Options For June 2026
|
AAL
|
https://www.nasdaq.com/articles/interesting-aal-put-and-call-options-for-june-2026
|
nan
|
nan
|
Investors in American Airlines Group Inc (Symbol: AAL) saw new options become available today, for the June 2026 expiration. One of the key data points that goes into the price an option buyer is willing to pay, is the time value, so with 1001 days until expiration the newly available contracts represent a possible opportunity for sellers of puts or calls to achieve a higher premium than would be available for the contracts with a closer expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new June 2026 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 $2.18. 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 $9.82 (before broker commissions). To an investor already interested in purchasing shares of AAL, that could represent an attractive alternative to paying $13.07/share today.
Because the $12.00 strike represents an approximate 8% 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 18.17% return on the cash commitment, or 6.62% 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 $15.00 strike price has a current bid of $2.92. If an investor was to purchase shares of AAL stock at the current price level of $13.07/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $15.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 37.11% if the stock gets called away at the June 2026 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 $15.00 strike highlighted in red:
Considering the fact that the $15.00 strike represents an approximate 15% 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 22.34% boost of extra return to the investor, or 8.15% 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 $13.07) to be 38%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Top YieldBoost Calls of the S&P 500 »
Also see:
Construction Dividend Stock List
NLS market cap history
BMO Dividend History
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 $15.00 strike highlighted in red: Considering the fact that the $15.00 strike represents an approximate 15% 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 become available today, for the June 2026 expiration.
|
Below is a chart showing AAL's trailing twelve month trading history, with the $15.00 strike highlighted in red: Considering the fact that the $15.00 strike represents an approximate 15% 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 become available today, for the June 2026 expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new June 2026 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 $15.00 strike highlighted in red: Considering the fact that the $15.00 strike represents an approximate 15% 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 become available today, for the June 2026 expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new June 2026 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 $15.00 strike highlighted in red: Considering the fact that the $15.00 strike represents an approximate 15% 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 become available today, for the June 2026 expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new June 2026 contracts and identified one put and one call contract of particular interest.
|
2247.0
|
2023-09-21 00:00:00 UTC
|
Notable Thursday Option Activity: DLTR, AAL, SCHW
|
AAL
|
https://www.nasdaq.com/articles/notable-thursday-option-activity%3A-dltr-aal-schw
|
nan
|
nan
|
Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in Dollar Tree Inc (Symbol: DLTR), where a total volume of 20,626 contracts has been traded thus far today, a contract volume which is representative of approximately 2.1 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 67.4% of DLTR's average daily trading volume over the past month, of 3.1 million shares. Particularly high volume was seen for the $150 strike put option expiring January 19, 2024, with 3,579 contracts trading so far today, representing approximately 357,900 underlying shares of DLTR. Below is a chart showing DLTR's trailing twelve month trading history, with the $150 strike highlighted in orange:
American Airlines Group Inc (Symbol: AAL) options are showing a volume of 140,249 contracts thus far today. That number of contracts represents approximately 14.0 million underlying shares, working out to a sizeable 59.3% of AAL's average daily trading volume over the past month, of 23.6 million shares. Particularly high volume was seen for the $5 strike put option expiring January 16, 2026, with 22,481 contracts trading so far today, representing approximately 2.2 million underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $5 strike highlighted in orange:
And The Charles Schwab Corporation (Symbol: SCHW) options are showing a volume of 51,553 contracts thus far today. That number of contracts represents approximately 5.2 million underlying shares, working out to a sizeable 56.5% of SCHW's average daily trading volume over the past month, of 9.1 million shares. Especially high volume was seen for the $75 strike put option expiring January 19, 2024, with 7,870 contracts trading so far today, representing approximately 787,000 underlying shares of SCHW. Below is a chart showing SCHW's trailing twelve month trading history, with the $75 strike highlighted in orange:
For the various different available expirations for DLTR options, AAL options, or SCHW options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
Also see:
KROP YTD Return
Top Ten Hedge Funds Holding ECH
Funds Holding NSYS
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 $5 strike put option expiring January 16, 2026, with 22,481 contracts trading so far today, representing approximately 2.2 million underlying shares of AAL. Below is a chart showing DLTR's trailing twelve month trading history, with the $150 strike highlighted in orange: American Airlines Group Inc (Symbol: AAL) options are showing a volume of 140,249 contracts thus far today. That number of contracts represents approximately 14.0 million underlying shares, working out to a sizeable 59.3% of AAL's average daily trading volume over the past month, of 23.6 million shares.
|
That number of contracts represents approximately 14.0 million underlying shares, working out to a sizeable 59.3% of AAL's average daily trading volume over the past month, of 23.6 million shares. Particularly high volume was seen for the $5 strike put option expiring January 16, 2026, with 22,481 contracts trading so far today, representing approximately 2.2 million underlying shares of AAL. Below is a chart showing DLTR's trailing twelve month trading history, with the $150 strike highlighted in orange: American Airlines Group Inc (Symbol: AAL) options are showing a volume of 140,249 contracts thus far today.
|
Particularly high volume was seen for the $5 strike put option expiring January 16, 2026, with 22,481 contracts trading so far today, representing approximately 2.2 million underlying shares of AAL. Below is a chart showing DLTR's trailing twelve month trading history, with the $150 strike highlighted in orange: American Airlines Group Inc (Symbol: AAL) options are showing a volume of 140,249 contracts thus far today. That number of contracts represents approximately 14.0 million underlying shares, working out to a sizeable 59.3% of AAL's average daily trading volume over the past month, of 23.6 million shares.
|
That number of contracts represents approximately 14.0 million underlying shares, working out to a sizeable 59.3% of AAL's average daily trading volume over the past month, of 23.6 million shares. Below is a chart showing SCHW's trailing twelve month trading history, with the $75 strike highlighted in orange: For the various different available expirations for DLTR options, AAL options, or SCHW options, visit StockOptionsChannel.com. Below is a chart showing DLTR's trailing twelve month trading history, with the $150 strike highlighted in orange: American Airlines Group Inc (Symbol: AAL) options are showing a volume of 140,249 contracts thus far today.
|
2248.0
|
2023-09-21 00:00:00 UTC
|
The Zacks Analyst Blog Highlights American Airlines, Delta Air Lines, United Airlines, Spirit Airlines and Hawaiian Holdings
|
AAL
|
https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights-american-airlines-delta-air-lines-united-airlines-spirit
|
nan
|
nan
|
For Immediate Release
Chicago, IL – September 21, 2023 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: American Airlines AAL, Delta Air Lines DAL, United Airlines UAL, Spirit Airlines SAVE and Hawaiian Holdings HA.
Here are highlights from Wednesday’s Analyst Blog:
Airline Industry Depreciates -7.1% in the Last Month: Here's Why
It is a well-documented fact that the stronger-than-expected bounce back of air travel has served as a huge boon for airline stocks. With passenger revenues accounting for most of the top line, airline revenues are moving northwards in the post-COVID-19 scenario.
Air travel demand is not only strong on the leisure front (pent-up demand for international travel is the most vital driver of leisure travel), but what is more encouraging is that business travel is coming back as pandemic-related restrictions are removed. Despite the bullish scenario concerning the top line, the Zacks Airline industry has shed 7.1% of its value in a month's time, against the S&P 500's 0.4% uptick.
Let's delve deep to unearth the reasons behind the disappointing price performance despite the bright top-line scenario.
The northward movement in oil prices is not a welcome development for airline stocks. This is because expenses on fuel represent a significant input cost for airlines. Therefore, an increase in fuel costs hurts bottom-line growth. Recently, oil prices crossed the $90-per-barrel mark for the first time since November. The northward movement in crude price is primarily due to the extension of production cut by Saudi Arabia and Russia through the end of the current year.
The sharp rise in one of the primary input costs of airlines is likely to hurt the bottom-line growth of the stocks in the third quarter of 2023. The development has caused key airline stocks, including the likes of American Airlines, Delta Air Lines, United Airlines and Spirit Airlines, to increase their September quarter projections for fuel price per gallon.
American Airlines' management stated that "fuel prices have increased considerably since the company's initial third-quarter guidance issued on Jul 20, 2023". American Airlines now expects the fuel cost per gallon (including taxes) in the $2.90-$3.00 band (the earlier guidance was in the $2.55-$2.65 range). DAL now expects fuel price per gallon in the $2.75 - $2.90 range (earlier guidance: $2.50 - $2.70).
Spirit Airlines' management now expects third-quarter fuel cost per gallon to be $3.06, against the earlier projection of $2.80. United Airlines now expects the fuel cost per gallon in the $2.95-$3.05 band (the earlier guidance was in the $2.5-$2.8 range).
As if high fuel costs were not enough, labor costs also increase courtesy of the multiple labor deals witnessed in the space. Given the high air-travel demand and the labor crunch in the post-COVID-19 scenario, the bargaining power of various labor groups has increased.
Another headwind has emanated from the devastation caused by wildfire to the Lahaina town in West Maui. This has affected Hawaiian Holdings, currently carrying a Zacks Rank #3 (Hold), the most.
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Due to the reduced travel demand to Maui from the U.S. Mainland and Neighbor Islands, HA now expects third-quarter 2023 total revenues per available seat miles to decrease 4-7% from third-quarter 2022 levels (prior projection: 2-5% decline).
What's Ahead for Airlines?
With people again taking to the skies, passenger revenues are likely to remain strong. However, costs are likely to stay high, in turn hurting the bottom-line growth of airlines.
The International Energy Agency recently said that the actions of Saudi Arabia and Russia will lead to a supply deficit through the December quarter. This implies that oil prices will remain high, which is a bane for airlines' bottom lines. We expect pay-related deals with labor groups to continue, at least in the near term. Consequently, high labor costs are also likely to eat into profitability.
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 >>
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.
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
Spirit Airlines, Inc. (SAVE) : Free Stock Analysis Report
Hawaiian Holdings, Inc. (HA) : 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.
|
Stocks recently featured in the blog include: American Airlines AAL, Delta Air Lines DAL, United Airlines UAL, Spirit Airlines SAVE and Hawaiian Holdings HA. 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 Spirit Airlines, Inc. (SAVE) : Free Stock Analysis Report Hawaiian Holdings, Inc. (HA) : Free Stock Analysis Report To read this article on Zacks.com click here. The northward movement in crude price is primarily due to the extension of production cut by Saudi Arabia and Russia through the end of the current year.
|
Stocks recently featured in the blog include: American Airlines AAL, Delta Air Lines DAL, United Airlines UAL, Spirit Airlines SAVE and Hawaiian Holdings HA. 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 Spirit Airlines, Inc. (SAVE) : Free Stock Analysis Report Hawaiian Holdings, Inc. (HA) : Free Stock Analysis Report To read this article on Zacks.com click here. The development has caused key airline stocks, including the likes of American Airlines, Delta Air Lines, United Airlines and Spirit Airlines, to increase their September quarter projections for fuel price per gallon.
|
Stocks recently featured in the blog include: American Airlines AAL, Delta Air Lines DAL, United Airlines UAL, Spirit Airlines SAVE and Hawaiian Holdings HA. 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 Spirit Airlines, Inc. (SAVE) : Free Stock Analysis Report Hawaiian Holdings, Inc. (HA) : Free Stock Analysis Report To read this article on Zacks.com click here. The development has caused key airline stocks, including the likes of American Airlines, Delta Air Lines, United Airlines and Spirit Airlines, to increase their September quarter projections for fuel price per gallon.
|
Stocks recently featured in the blog include: American Airlines AAL, Delta Air Lines DAL, United Airlines UAL, Spirit Airlines SAVE and Hawaiian Holdings HA. 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 Spirit Airlines, Inc. (SAVE) : Free Stock Analysis Report Hawaiian Holdings, Inc. (HA) : Free Stock Analysis Report To read this article on Zacks.com click here. The development has caused key airline stocks, including the likes of American Airlines, Delta Air Lines, United Airlines and Spirit Airlines, to increase their September quarter projections for fuel price per gallon.
|
2249.0
|
2023-09-21 00:00:00 UTC
|
American Airlines (AAL) Flat As Market Sinks: What You Should Know
|
AAL
|
https://www.nasdaq.com/articles/american-airlines-aal-flat-as-market-sinks%3A-what-you-should-know
|
nan
|
nan
|
American Airlines (AAL) closed the most recent trading day at $13.06, making no change from the previous trading session. This change was narrower than the S&P 500's 1.64% loss on the day. Meanwhile, the Dow lost 1.08%, and the Nasdaq, a tech-heavy index, lost 1.82%.
Coming into today, shares of the world's largest airline had lost 11.64% in the past month. In that same time, the Transportation sector lost 2.87%, while the S&P 500 gained 0.89%.
American Airlines will be looking to display strength as it nears its next earnings release. In that report, analysts expect American Airlines to post earnings of $0.62 per share. This would mark a year-over-year decline of 10.14%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $13.58 billion, up 0.84% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.88 per share and revenue of $53.14 billion. These totals would mark changes of +476% and +8.5%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for American Airlines. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 14.38% lower within the past month. American Airlines currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, American Airlines is holding a Forward P/E ratio of 4.53. Its industry sports an average Forward P/E of 7.76, so we one might conclude that American Airlines is trading at a discount comparatively.
Also, we should mention that AAL has a PEG ratio of 0.08. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Transportation - Airline industry currently had an average PEG ratio of 0.39 as of yesterday's close.
The Transportation - Airline industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 162, which puts it in the bottom 36% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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) closed the most recent trading day at $13.06, making no change from the previous trading session. Also, we should mention that AAL has a PEG ratio of 0.08. Click to get this free report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here.
|
American Airlines (AAL) closed the most recent trading day at $13.06, making no change from the previous trading session. Click to get this free report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. Also, we should mention that AAL has a PEG ratio of 0.08.
|
American Airlines (AAL) closed the most recent trading day at $13.06, making no change from the previous trading session. Also, we should mention that AAL has a PEG ratio of 0.08. Click to get this free report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here.
|
American Airlines (AAL) closed the most recent trading day at $13.06, making no change from the previous trading session. Also, we should mention that AAL has a PEG ratio of 0.08. Click to get this free report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here.
|
2250.0
|
2023-09-21 00:00:00 UTC
|
FOCUS-Travel boom not enough to drive profits at US budget airlines Frontier, Spirit
|
AAL
|
https://www.nasdaq.com/articles/focus-travel-boom-not-enough-to-drive-profits-at-us-budget-airlines-frontier-spirit
|
nan
|
nan
|
By Rajesh Kumar Singh
CHICAGO, Sept 21 (Reuters) - Travel boom has delivered bumper earnings for U.S. carriers, but no-frills airlines such as Frontier ULCC.O and Spirit SAVE.N are struggling to return to sustainable profitability.
That has made some of them weigh premium-price offerings, including first-class seats, customer lounges and branded foods even as they expect fares to remain the primary driver for bookings.
Ultra low-cost carriers offer a no-frills experience at rock-bottom fares and charge heavily for ancillary services.
They were tipped to be the big winners after the pandemic, but persistent operational constraints have exacerbated their cost pressures, making it imperative to find new high-margin revenue streams.
With consumers more willing to splurge on travel, demand for premium cabins has gone up. This together with soaring bookings for flights to Europe and Asia have allowed the legacy airlines - Delta DAL.N, United UAL.O and American AAL.O - to mitigate inflationary pressures.
Budget carriers lack these products.
Frontier CEO Barry Biffle said while he will not invest in long-haul jets, he has been struck by a greater desire among leisure travelers to pay for first-class seats on domestic flights.
Frontier is watching the trend "very carefully" and would consider adding premium seats if it lasts for multiple years, he said.
"If people are really willing to pay that much for a premium, maybe there is an opportunity," Biffle told Reuters.
Similarly, Minneapolis-based ultra-low-cost carrier Sun Country SNCY.O is contemplating opening an airport lounge and offering branded food and beverage. CEO Jude Bricker said the demand for services that offer even minor improvements to the travel experience has doubled.
"We're in discussions about things that I would have written off in the past," Bricker said.
These offerings, however, entail a dilution of the traditional no-frills business model that powered the earnings of budget carriers before the pandemic. They also run the risk of inflating costs.
Frontier's Biffle called adding premium seats a "big decision" and a "fairly expensive" move. That's why he is not ready to change Frontier's business model "overnight."
In the meantime, he is doubling down on costs. Frontier plans to rework its network to allow almost all of its planes to return to their stations every night, with a goal to contain disruptions and save money.
OPERATIONAL CONSTRAINTS
No-frills carriers operate a single fleet, fly their aircraft longer each day, and put more seats on every plane.
Operational constraints have upended that playbook. A shortage of air-traffic controllers has marred Frontier's operations. Sun Country is grappling with a shortfall of captains. Spirit has been forced to ground several planes due to RTX's RTX.N engine problem.
As a result, ultra low-cost carriers have not been able to fully utilize their fleets - a strategy they relied upon before the pandemic to lower operating costs and boost profits.
Meanwhile, surging pilot pay rates have ballooned costs. Privately-owned Avelo Airlines has seen a 75% jump in its pilot wage bill in the past two years. The bill is expected to increase by another 10% following hefty pay raises at major carriers, CEO Andrew Levy said.
Weakening pricing power in their domestic market, as well as a jump in fuel prices, have only added to their troubles.
Biffle last week said Frontier is facing pressure to offer "very, very low" fares to fill up its planes.Spirit has cut its profit outlook for the current quarter, citing "heightened promotional activity with steep discounting."
Frontier's shares are down by half this year. Spirit shares are down 18%. In contrast, shares of United and Delta are up 20%, and American's shares have gained 5%.
The divergence in performance has sparked questions about the business model of low cost, low fares.
United Airlines CEO Scott Kirby has called the model "doomed" as he doesn't expect the constraints would go away anytime soon. Some analysts are also calling for a review.
"I don't know that the model is completely broken, but I certainly think that it needs to be rethought," said Helane Becker, airline analyst at TD Cowen.
PRICE-SENSITIVE TRAVELERS
CEOs of budget carriers, however, don't see the model losing its appeal as long as fares determine travel bookings. The share of discount carriers in domestic passenger traffic has gone up after the pandemic, data from trade group Airlines for America shows, thanks to travelers like Jacob Brown.
The 23-year-old Denver-based school teacher calls himself a "big fan" of ultra-low-cost airlines. He has been using Frontier's unlimited $140 monthly flight pass, which he said translates into an average one-way fare of about $15.
"I can't afford to fly Delta enough on my measly salary," Brown said. "But I can afford to fly budget carriers."
GRAPHIC-Decreasing profit margins https://tmsnrt.rs/45S3KJC
GRAPHIC-Increasing costs for budget airlines https://tmsnrt.rs/3rgA1uQ
GRAPHIC-Falling utilization as compared to pre-COVID levels https://tmsnrt.rs/3rb9Ndo
FOCUS-US airline pilots fight their unions to increase retirement age
Travel demand strong, but U.S. carriers fret over aircraft delivery delays
US sues to stop JetBlue's deal for Spirit, cites consumer harm
ANALYSIS-Will abandoning American help JetBlue's Spirit merger? Not by much
(Reporting by Rajesh Kumar Singh, Editing by Nick Zieminski)
((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.
|
This together with soaring bookings for flights to Europe and Asia have allowed the legacy airlines - Delta DAL.N, United UAL.O and American AAL.O - to mitigate inflationary pressures. By Rajesh Kumar Singh CHICAGO, Sept 21 (Reuters) - Travel boom has delivered bumper earnings for U.S. carriers, but no-frills airlines such as Frontier ULCC.O and Spirit SAVE.N are struggling to return to sustainable profitability. Frontier CEO Barry Biffle said while he will not invest in long-haul jets, he has been struck by a greater desire among leisure travelers to pay for first-class seats on domestic flights.
|
This together with soaring bookings for flights to Europe and Asia have allowed the legacy airlines - Delta DAL.N, United UAL.O and American AAL.O - to mitigate inflationary pressures. These offerings, however, entail a dilution of the traditional no-frills business model that powered the earnings of budget carriers before the pandemic. Frontier's Biffle called adding premium seats a "big decision" and a "fairly expensive" move.
|
This together with soaring bookings for flights to Europe and Asia have allowed the legacy airlines - Delta DAL.N, United UAL.O and American AAL.O - to mitigate inflationary pressures. By Rajesh Kumar Singh CHICAGO, Sept 21 (Reuters) - Travel boom has delivered bumper earnings for U.S. carriers, but no-frills airlines such as Frontier ULCC.O and Spirit SAVE.N are struggling to return to sustainable profitability. CEOs of budget carriers, however, don't see the model losing its appeal as long as fares determine travel bookings.
|
This together with soaring bookings for flights to Europe and Asia have allowed the legacy airlines - Delta DAL.N, United UAL.O and American AAL.O - to mitigate inflationary pressures. These offerings, however, entail a dilution of the traditional no-frills business model that powered the earnings of budget carriers before the pandemic. Spirit shares are down 18%.
|
2251.0
|
2023-09-20 00:00:00 UTC
|
Airline Industry Depreciates 7.1% in Past Month: Here's Why
|
AAL
|
https://www.nasdaq.com/articles/airline-industry-depreciates-7.1-in-past-month%3A-heres-why
|
nan
|
nan
|
It is a well-documented fact that the stronger-than-expected bounce back of air travel has served as a huge boon for airline stocks. With passenger revenues accounting for most of the top line, airline revenues are moving northwards in the post-COVID-19 scenario.
Air travel demand is not only strong on the leisure front (pent-up demand for international travel is the most vital driver of leisure travel), but what is more encouraging is that business travel is coming back as pandemic-related restrictions are removed. Despite the bullish scenario concerning the top line, the Zacks Airline industry has shed 7.1% of its value in a month’s time, against the S&P 500's 0.4% uptick.
Image Source: Zacks Investment Research
Let’s delve deep to unearth the reasons behind the disappointing price performance despite the bright top-line scenario.
The northward movement in oil prices is not a welcome development for airline stocks. This is because expenses on fuel represent a significant input cost for airlines. Therefore, an increase in fuel costs hurts bottom-line growth. Recently, oil prices crossed the $90-per-barrel mark for the first time since November. The northward movement in crude price is primarily due to the extension of production cut by Saudi Arabia and Russia through the end of the current year.
The sharp rise in one of the primary input costs of airlines is likely to hurt the bottom-line growth of the stocks in the third quarter of 2023. The development has caused key airline stocks, including the likes of American Airlines AAL, Delta Air Lines DAL, United Airlines UAL and Spirit Airlines SAVE, to increase their September quarter projections for fuel price per gallon.
American Airlines’ management stated that “fuel prices have increased considerably since the company’s initial third-quarter guidance issued on Jul 20, 2023”. American Airlines now expects the fuel cost per gallon (including taxes) in the $2.90-$3.00 band (the earlier guidance was in the $2.55-$2.65 range). DAL now expects fuel price per gallon in the $2.75 - $2.90 range (earlier guidance: $2.50 - $2.70).
Spirit Airlines’ management now expects third-quarter fuel cost per gallon to be $3.06, against the earlier projection of $2.80. United Airlines now expects the fuel cost per gallon in the $2.95-$3.05 band (the earlier guidance was in the $2.5-$2.8 range).
As if high fuel costs were not enough, labor costs also increase courtesy of the multiple labor deals witnessed in the space. Given the high air-travel demand and the labor crunch in the post-COVID-19 scenario, the bargaining power of various labor groups has increased.
Another headwind has emanated from the devastation caused by wildfire to the Lahaina town in West Maui. This has affected Hawaiian Holdings HA, currently carrying a Zacks Rank #3 (Hold), the most.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Due to the reduced travel demand to Maui from the U.S. Mainland and Neighbor Islands, HA now expects third-quarter 2023 total revenues per available seat miles to decrease 4-7% from third-quarter 2022 levels (prior projection: 2-5% decline).
What’s Ahead for Airlines?
With people again taking to the skies, passenger revenues are likely to remain strong. However, costs are likely to stay high, in turn hurting the bottom-line growth of airlines.
The International Energy Agency recently said that the actions of Saudi Arabia and Russia will lead to a supply deficit through the December quarter. This implies that oil prices will remain high, which is a bane for airlines’ bottom lines. We expect pay-related deals with labor groups to continue, at least in the near term. Consequently, high labor costs are also likely to eat into profitability.
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
Spirit Airlines, Inc. (SAVE) : Free Stock Analysis Report
Hawaiian Holdings, Inc. (HA) : 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 development has caused key airline stocks, including the likes of American Airlines AAL, Delta Air Lines DAL, United Airlines UAL and Spirit Airlines SAVE, to increase their September quarter projections for fuel price per gallon. 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 Spirit Airlines, Inc. (SAVE) : Free Stock Analysis Report Hawaiian Holdings, Inc. (HA) : Free Stock Analysis Report To read this article on Zacks.com click here. Image Source: Zacks Investment Research Let’s delve deep to unearth the reasons behind the disappointing price performance despite the bright top-line scenario.
|
The development has caused key airline stocks, including the likes of American Airlines AAL, Delta Air Lines DAL, United Airlines UAL and Spirit Airlines SAVE, to increase their September quarter projections for fuel price per gallon. 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 Spirit Airlines, Inc. (SAVE) : Free Stock Analysis Report Hawaiian Holdings, Inc. (HA) : Free Stock Analysis Report To read this article on Zacks.com click here. Spirit Airlines’ management now expects third-quarter fuel cost per gallon to be $3.06, against the earlier projection of $2.80.
|
The development has caused key airline stocks, including the likes of American Airlines AAL, Delta Air Lines DAL, United Airlines UAL and Spirit Airlines SAVE, to increase their September quarter projections for fuel price per gallon. 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 Spirit Airlines, Inc. (SAVE) : Free Stock Analysis Report Hawaiian Holdings, Inc. (HA) : Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines now expects the fuel cost per gallon (including taxes) in the $2.90-$3.00 band (the earlier guidance was in the $2.55-$2.65 range).
|
The development has caused key airline stocks, including the likes of American Airlines AAL, Delta Air Lines DAL, United Airlines UAL and Spirit Airlines SAVE, to increase their September quarter projections for fuel price per gallon. 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 Spirit Airlines, Inc. (SAVE) : Free Stock Analysis Report Hawaiian Holdings, Inc. (HA) : Free Stock Analysis Report To read this article on Zacks.com click here. Therefore, an increase in fuel costs hurts bottom-line growth.
|
2252.0
|
2023-09-20 00:00:00 UTC
|
Bear of the Day: Southwest Airlines (LUV)
|
AAL
|
https://www.nasdaq.com/articles/bear-of-the-day%3A-southwest-airlines-luv
|
nan
|
nan
|
Overview
Based in Dallas, TX, Southwest Airlines (LUV) is a low-cost airline provider mainly servicing the United States and “ten near-international” markets. Southwest provides short-haul, high-frequency, point-to-point, low-fare services. The company’s point-to-point route structure includes services to and from many secondary or downtown airports such as Dallas Love Field, Houston Hobby, Chicago Midway, Baltimore-Washington International, and Ft-Lauderdale-Hollywood.
Low Cost = Low Performance
Low-cost carriers like Spirit Airlines (SAVE) and Southwest Airlines have been dramatically underperforming their larger peers such as United Airlines (UAL).
What is Behind the Underperformance?
Unprofitable and moving in the wrong direction
In Q4, Southwest Airlines swung to a loss for the first time in three quarters. The 38-cent loss was wider than the Zacks Consensus Estimate of 3 cents. Adding to the disappointment, Southwest earned has seen three straight quarters of negative EPS growth.
Operational Disruptions
Massive flight cancellations due to extreme winter weather conditions adversely impacted Southwest’s operations. Because Southwest is more focused on one part of the globe when compared to its larger counterparts, the company suffered more. Nearly 17,000 flights were cancelled in the last ten days of 2022 – equating to a pre-tax negative impact of approximately $800 million.
In Fighting & Bad Publicity
Southwest is known and loved by its customers because of the laid-back nature of its flight attendants and employees. This laissez faire attitude is that Southwest management has found that many customers appreciate a less stuffy environment. However, that may change soon. Southwest pilots and employees are seeing little progress in trying to reach a new contract deal. If a strike is to take place, it will lead to even higher costs – especially since competitors like United and American Airlines (AAL) have already reached deals with their respective unions.
Margins are Being Squeezed
Rising fuel and labor costs are causing Southwest’s financial efficiency to take a significant hit. In fact, LUV’s return-on-equity of 5.81% pales in comparison to the S&P 500 Index’s 26.2%.
Image Source: Zacks Investment Research
Relative Weakness: When it comes to the stock market, price action = truth. Over the past six months, the S&P 500 Index is up 15.90%, while Southwest is down 14.1%
Image Source: Zacks Investment Research
Negative Earnings ESP Score
Zacks Earnings ESP (Expected Surprise Prediction) measures the chances a company will beat or miss on earnings. LUV has the unfortunate mix of a Zacks Rank #5 (Strong Sell) and a negative ESP – suggesting the company is likely to miss earnings when it reports October 26th.
Image Source: Zacks Investment Research
Conclusion
Prospective airline investors should avoid low-cost carriers, such as Southwest and instead opt for larger players such as United Airlines. Southwest has slower growth, shrinking margins, and notable reputational damage to contend with. Furthermore, the price action is disheartening when compared to the market and the airline group.
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
Southwest Airlines Co. (LUV) : Free Stock Analysis Report
American Airlines Group Inc. (AAL) : Free Stock Analysis Report
Spirit Airlines, Inc. (SAVE) : 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.
|
If a strike is to take place, it will lead to even higher costs – especially since competitors like United and American Airlines (AAL) have already reached deals with their respective unions. Click to get this free 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 Spirit Airlines, Inc. (SAVE) : Free Stock Analysis Report To read this article on Zacks.com click here. The company’s point-to-point route structure includes services to and from many secondary or downtown airports such as Dallas Love Field, Houston Hobby, Chicago Midway, Baltimore-Washington International, and Ft-Lauderdale-Hollywood.
|
Click to get this free 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 Spirit Airlines, Inc. (SAVE) : Free Stock Analysis Report To read this article on Zacks.com click here. If a strike is to take place, it will lead to even higher costs – especially since competitors like United and American Airlines (AAL) have already reached deals with their respective unions. Low Cost = Low Performance Low-cost carriers like Spirit Airlines (SAVE) and Southwest Airlines have been dramatically underperforming their larger peers such as United Airlines (UAL).
|
Click to get this free 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 Spirit Airlines, Inc. (SAVE) : Free Stock Analysis Report To read this article on Zacks.com click here. If a strike is to take place, it will lead to even higher costs – especially since competitors like United and American Airlines (AAL) have already reached deals with their respective unions. Low Cost = Low Performance Low-cost carriers like Spirit Airlines (SAVE) and Southwest Airlines have been dramatically underperforming their larger peers such as United Airlines (UAL).
|
If a strike is to take place, it will lead to even higher costs – especially since competitors like United and American Airlines (AAL) have already reached deals with their respective unions. Click to get this free 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 Spirit Airlines, Inc. (SAVE) : Free Stock Analysis Report To read this article on Zacks.com click here. Low Cost = Low Performance Low-cost carriers like Spirit Airlines (SAVE) and Southwest Airlines have been dramatically underperforming their larger peers such as United Airlines (UAL).
|
2253.0
|
2023-09-18 00:00:00 UTC
|
3 Airline Stocks That Should Be on Every Investor’s Radar This Fall
|
AAL
|
https://www.nasdaq.com/articles/3-airline-stocks-that-should-be-on-every-investors-radar-this-fall
|
nan
|
nan
|
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Inflation is affecting all sectors of the stock market, but perhaps none more than airline stocks. In mid-September, several airlines including Southwest Airlines (NYSE:LUV) and American Airlines (NASDAQ:AAL) are lowering profit expectations due to higher fuel costs.
This was particularly bad timing as the industry continues to manage labor difficulties which have caused flight delays. Although “revenge travel” continues to be robust, many industry analysts are concerned that, at some point, the consumer may simply be tapped out for air travel.
So, before investing in airline stocks, remember these will be long-term investments. The industry was showing weakness prior to 2020. The recovery will take time. But long-term investors may be rewarded for taking a calculated investment in some of the leading names in the sector.
Delta Air Lines (DAL)
Source: Lerner Vadim / Shutterstock.com
Even though travel demand has remained robust despite a weakening economy, many top airline stocks are trading below the 200-day moving average.
However, this hasn’t been the situation for Delta Air Lines (NYSE:DAL). The airline’s stock has found support around its 200-day separately managed account (SMA). Investors can only hope the bottom is intact.
On September 14, Delta joined other airlines in lowering its profit forecast for the remainder of 2023. The new range of between $1.85 and $2.05 takes into account higher fuel costs as well as higher-than-expected maintenance costs.
However, the news hasn’t been all bad for the carrier. Delta was projecting revenue to fall by as much as 4%. However, it’s now revealing that decrease will only be between 2% and 3%.
Also, the 15% decline in earnings is not likely to affect the company’s recently reinstated dividend. Thus, patient investors will have a reason to deal with any turbulence that may come from owning DAL stock.
United Airlines (UAL)
Source: shutterstock.com/Pasuwan
United Airlines (NASDAQ:UAL) hasn’t announced a downward revision to its future earnings. For now, investors can give some credibility to analysts’ forecasts for a 1.4% increase in profits.
Notably, the airline has approximately 15% market share. That makes it the fourth-largest carrier, but only a couple of percentage points behind the leader.
The airline may have an opportunity to pick up some additional share via international flights. The company has one of the most extensive portfolios of international routes, although that area hasn’t fully recovered.
United has been cleaning up its debt profile and isn’t currently offering a dividend. Still, investors can look at UAL stock and find that it’s significantly undervalued among airline stocks at just 4x forward earnings.
Global Jets ETF (JETS)
Source: frank_peters / Shutterstock.com
The Global Jets ETF (NYSEARCA:JETS) is the industry’s only ETF dedicated to the airline industry. Until early September, the JETS ETF was trading above its 200-day SMA. However, since several airlines have lowered their profit forecasts, the industry’s lone ETF has moved lower.
One of the criticisms of the ETF points to a significant percentage of its holdings tied up in the “big four” airline stocks. Two of those are Delta and United. So, investors looking for exposure in the airline sector could simply buy shares of one or more of those companies.
That’s fair. But another option is to allow the ETF to take away the risk and volatility that comes with any single stock. The fund has over $1.5 billion of assets under management. It does, however, have a 0.60% expense ratio that could be higher than some investors would like.
On the date of publication, Chris Markoch 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
Chris Markoch is a freelance financial copywriter who has been covering the market for over five years. He has been writing for InvestorPlace since 2019.
More From InvestorPlace
Musk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In.
ChatGPT IPO Could Shock the World, Make This Move Before the Announcement
It doesn’t matter if you have $500 or $5 million. Do this now.
The post 3 Airline Stocks That Should Be on Every Investor’s Radar This Fall 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.
|
In mid-September, several airlines including Southwest Airlines (NYSE:LUV) and American Airlines (NASDAQ:AAL) are lowering profit expectations due to higher fuel costs. Delta Air Lines (DAL) Source: Lerner Vadim / Shutterstock.com Even though travel demand has remained robust despite a weakening economy, many top airline stocks are trading below the 200-day moving average. One of the criticisms of the ETF points to a significant percentage of its holdings tied up in the “big four” airline stocks.
|
In mid-September, several airlines including Southwest Airlines (NYSE:LUV) and American Airlines (NASDAQ:AAL) are lowering profit expectations due to higher fuel costs. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Inflation is affecting all sectors of the stock market, but perhaps none more than airline stocks. United Airlines (UAL) Source: shutterstock.com/Pasuwan United Airlines (NASDAQ:UAL) hasn’t announced a downward revision to its future earnings.
|
In mid-September, several airlines including Southwest Airlines (NYSE:LUV) and American Airlines (NASDAQ:AAL) are lowering profit expectations due to higher fuel costs. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Inflation is affecting all sectors of the stock market, but perhaps none more than airline stocks. Global Jets ETF (JETS) Source: frank_peters / Shutterstock.com The Global Jets ETF (NYSEARCA:JETS) is the industry’s only ETF dedicated to the airline industry.
|
In mid-September, several airlines including Southwest Airlines (NYSE:LUV) and American Airlines (NASDAQ:AAL) are lowering profit expectations due to higher fuel costs. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Inflation is affecting all sectors of the stock market, but perhaps none more than airline stocks. This was particularly bad timing as the industry continues to manage labor difficulties which have caused flight delays.
|
2254.0
|
2023-09-17 00:00:00 UTC
|
Will RTX Corp Stock Recover To Its Pre-Inflation Shock Highs of $100?
|
AAL
|
https://www.nasdaq.com/articles/will-rtx-corp-stock-recover-to-its-pre-inflation-shock-highs-of-%24100
|
nan
|
nan
|
RTX Corp stock (NYSE: RTX), formerly known as Raytheon Technologies, currently trades at $76 per share, about 20% lower than the level seen in early June 2022, just before the Fed started increasing rates, compared to 18% gains for the S&P 500 during this period. This underperformance of RTX stock can primarily be attributed to its recall of over 1,000 Pratt & Whitney engines and associated costs. Also, investors still have concerns about a potential recession despite a steady decline in the inflation rate in response to the Fed’s aggressive rate hike plan.
Interestingly, RTX stock has had a Sharpe Ratio of 0.2 since early 2017, much lower than 0.6 for the S&P 500 Index over the same period. This compares with the Sharpe of 1.3 for the Trefis Reinforced Value portfolio. Sharpe is a measure of return per unit of risk, and high-performance portfolios can provide the best of both worlds.
Returning to the pre-inflation shock level of about $104 means that RTX stock will have to gain over 35% from here, and we don’t think this will materialize anytime soon. RTX stock is currently trading at 1.6x revenues, compared to the last three-year average of 2.2x. Our RTX Corp Valuation Ratios Comparison dashboard has more details. Although RTX stock is trading at a valuation multiple lower than its historical average, the recall of Pratt & Whitney engines is going to cost billions to the company and it may continue to weigh on its stock in the near term.
Our detailed analysis of RTX Corp’s upside post-inflation shock captures trends in the company’s stock during the turbulent market conditions seen over 2022. It compares these trends to the stock’s performance during the 2008 recession.
2022 Inflation Shock
Timeline of Inflation Shock So Far:
2020 – early 2021: Increase in money supply to cushion the impact of lockdowns led to high demand for goods; producers unable to match up.
Early 2021: Shipping snarls and worker shortages from the coronavirus pandemic continue to hurt supply.
April 2021: Inflation rates cross 4% and increase rapidly.
Early 2022: Energy and food prices spike due to the Russian invasion of Ukraine. Fed begins its rate hike process.
June 2022: Inflation levels peak at 9% – the highest level in 40 years. The S&P 500 index declined more than 20% from peak levels.
July – September 2022: Fed hikes interest rates aggressively – resulting in an initial recovery in the S&P 500 followed by another sharp decline.
Since October 2022: Fed continues rate hike process; improving market sentiments help S&P500 recoup some of its losses.
In contrast, here’s how RTX stock and the broader market performed during the 2007/2008 crisis.
Timeline of 2007-08 Crisis
10/1/2007: Approximate pre-crisis peak in S&P 500 index.
9/1/2008 – 10/1/2008: Accelerated market decline corresponding to Lehman bankruptcy filing (9/15/08).
3/1/2009: Approximate bottoming out of S&P 500 index.
12/31/2009: Initial recovery to levels before accelerated decline (around 9/1/2008).
EW and S&P 500 Performance During 2007-08 Crisis.
RTX And S&P500 Performance During 2007-08 Financial Crisis
RTX stock saw a 15% decline from $48 in September 2007 (pre-crisis peak for RTX) to $41 in March 2009 (as the markets bottomed out). It declined further post the 2008 crisis to levels of around $32 in early 2010, fallng about 21% between March 2009 and January 2010. The S&P 500 Index saw a decline of 51%, falling from levels of 1,540 in September 2007 to 757 in March 2009. It then rallied 48% between March 2009 and January 2010 to reach levels of 1,124.
RTX Fundamentals Over Recent Years
RTX Corp’s revenue rose from $45.3 billion in 2019 to $67.1 billion in 2022. Raytheon’s commercial airplane business was hit during the pandemic weighing on its commercial OEM and aftermarket sales. This trend has now reversed, with both Pratt & Whitney and Collins Aerospace Systems segments driving the sales growth for the company in the recent past. The company’s operating margin declined from 12.7% in 2019 to 10.9% in 2022. Our RTX Corp Operating Income Comparison dashboard has more details.
Does RTX Have A Sufficient Cash Cushion To Meet Its Obligations Through The Ongoing Inflation Shock?
RTX’s total debt decreased from $43 billion in 2019 to $32 billion in 2022, while its cash increased from around $5 billion to $6 billion. The company also garnered $7 billion in cash flows from operations in 2022. Although the company has a high level of debt, given its cash cushion, RTX appears to be in a comfortable position to service its near-term debt obligations.
Conclusion
With the Fed’s efforts to tame runaway inflation rates helping market sentiment, we believe RTX stock has the potential for gains once fears of a potential recession are allayed. That said, the extent of its engine recall and high debt levels remain risk factors for realizing these gains. The company will take up to a $3.5 billion charge from the recall of engines in the next few years, while the overall cost could be even higher.
While RTX stock looks like it has little room for growth, it is helpful to see how RTX Corp’s Peers fare on metrics that matter. You will find other valuable comparisons for companies across industries at Peer Comparisons.
Returns Sep 2023
MTD [1] 2023
YTD [1] 2017-23
Total [2]
RTX Return -12% -25% 26%
S&P 500 Return -1% 16% 100%
Trefis Reinforced Value Portfolio -3% 28% 555%
[1] Month-to-date and year-to-date as of 9/14/2023
[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.
|
Our detailed analysis of RTX Corp’s upside post-inflation shock captures trends in the company’s stock during the turbulent market conditions seen over 2022. Since October 2022: Fed continues rate hike process; improving market sentiments help S&P500 recoup some of its losses. This trend has now reversed, with both Pratt & Whitney and Collins Aerospace Systems segments driving the sales growth for the company in the recent past.
|
Although RTX stock is trading at a valuation multiple lower than its historical average, the recall of Pratt & Whitney engines is going to cost billions to the company and it may continue to weigh on its stock in the near term. Since October 2022: Fed continues rate hike process; improving market sentiments help S&P500 recoup some of its losses. RTX And S&P500 Performance During 2007-08 Financial Crisis RTX stock saw a 15% decline from $48 in September 2007 (pre-crisis peak for RTX) to $41 in March 2009 (as the markets bottomed out).
|
RTX Corp stock (NYSE: RTX), formerly known as Raytheon Technologies, currently trades at $76 per share, about 20% lower than the level seen in early June 2022, just before the Fed started increasing rates, compared to 18% gains for the S&P 500 during this period. Although RTX stock is trading at a valuation multiple lower than its historical average, the recall of Pratt & Whitney engines is going to cost billions to the company and it may continue to weigh on its stock in the near term. RTX And S&P500 Performance During 2007-08 Financial Crisis RTX stock saw a 15% decline from $48 in September 2007 (pre-crisis peak for RTX) to $41 in March 2009 (as the markets bottomed out).
|
Although RTX stock is trading at a valuation multiple lower than its historical average, the recall of Pratt & Whitney engines is going to cost billions to the company and it may continue to weigh on its stock in the near term. It compares these trends to the stock’s performance during the 2008 recession. RTX And S&P500 Performance During 2007-08 Financial Crisis RTX stock saw a 15% decline from $48 in September 2007 (pre-crisis peak for RTX) to $41 in March 2009 (as the markets bottomed out).
|
2255.0
|
2023-09-15 00:00:00 UTC
|
US FAA cuts minimum flight requirements at New York airports through late 2024
|
AAL
|
https://www.nasdaq.com/articles/us-faa-cuts-minimum-flight-requirements-at-new-york-airports-through-late-2024
|
nan
|
nan
|
By David Shepardson
WASHINGTON, Sept 15 (Reuters) - Citing air traffic controller staffing issues, U.S. regulators announced on Friday they will again extend cuts to minimum flight requirements at congested New York City-area airports through October 2024, giving relief to airlines who faced delays because of government staffing issues.
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.
The FAA said the number of certified controllers at the New York Terminal Radar Approach Control (N90) "is still not sufficient to allow the FAA to handle normal traffic levels,"
The FAA said it continues working "on a long-term solution to solve the chronic low levels of fully certified air traffic controllers at N90."
Airlines for America, an industry group, said it appreciated "this latest waiver extension as the FAA navigates air traffic controller staffing shortages... U.S. airlines will continue to operate larger aircraft to help reduce pressure."
U.S. airlines Tuesday expressed growing frustration with ATC shortages, which have snarled flights.
Due to staffing shortages, the FAA previously in August extended temporary cuts to minimum flight requirements at congested New York City-area airports and Washington National Airport through Oct. 28 after first issuing the waivers in March after Delta Air Lines DAL.N and United Airlines UAL. sought permission not fly up to 10% of flights.
"The system can't cope with the number of flights today," JetBlue Airways JBLU.O CEO Robin Hayes told Reuters Tuesday. He said airlines received an initial waiver for flights in March "quite late... We have to get ahead of this."
Airlines have faced flight woes after a record-setting U.S. summer travel season and voluntary cut flights because of air traffic shortages. They want to add more flights to address demand.
The FAA in August said it met its yearly goal of hiring 1,500 controllers but is still about 3,000 controllers behind staffing targets.
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. N90 staffing was at just 54%, the report said.
The United States has experienced several near-miss aviation incidents this year, including some that could have been catastrophic involving apparent controller mistakes.
The FAA has 10,700 certified controllers, up slightly from 10,578 in 2022, virtually the same as 2021 and down 10% from 2012. At several facilities, controllers are working mandatory overtime and six-day work weeks to cover shortages.
(Reporting by David Shepardson; editing by Jonathan Oatis and Aurora Ellis)
((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.
|
By David Shepardson WASHINGTON, Sept 15 (Reuters) - Citing air traffic controller staffing issues, U.S. regulators announced on Friday they will again extend cuts to minimum flight requirements at congested New York City-area airports through October 2024, giving relief to airlines who faced delays because of government staffing issues. "The system can't cope with the number of flights today," JetBlue Airways JBLU.O CEO Robin Hayes told Reuters Tuesday. A government watchdog said in June critical ATC facilities face significant staffing challenges, posing risks to air traffic operations.
|
By David Shepardson WASHINGTON, Sept 15 (Reuters) - Citing air traffic controller staffing issues, U.S. regulators announced on Friday they will again extend cuts to minimum flight requirements at congested New York City-area airports through October 2024, giving relief to airlines who faced delays because of government staffing issues. Airlines for America, an industry group, said it appreciated "this latest waiver extension as the FAA navigates air traffic controller staffing shortages... U.S. airlines will continue to operate larger aircraft to help reduce pressure." Due to staffing shortages, the FAA previously in August extended temporary cuts to minimum flight requirements at congested New York City-area airports and Washington National Airport through Oct. 28 after first issuing the waivers in March after Delta Air Lines DAL.N and United Airlines UAL.
|
By David Shepardson WASHINGTON, Sept 15 (Reuters) - Citing air traffic controller staffing issues, U.S. regulators announced on Friday they will again extend cuts to minimum flight requirements at congested New York City-area airports through October 2024, giving relief to airlines who faced delays because of government staffing issues. The FAA said the number of certified controllers at the New York Terminal Radar Approach Control (N90) "is still not sufficient to allow the FAA to handle normal traffic levels," The FAA said it continues working "on a long-term solution to solve the chronic low levels of fully certified air traffic controllers at N90." Due to staffing shortages, the FAA previously in August extended temporary cuts to minimum flight requirements at congested New York City-area airports and Washington National Airport through Oct. 28 after first issuing the waivers in March after Delta Air Lines DAL.N and United Airlines UAL.
|
The FAA said the number of certified controllers at the New York Terminal Radar Approach Control (N90) "is still not sufficient to allow the FAA to handle normal traffic levels," The FAA said it continues working "on a long-term solution to solve the chronic low levels of fully certified air traffic controllers at N90." Due to staffing shortages, the FAA previously in August extended temporary cuts to minimum flight requirements at congested New York City-area airports and Washington National Airport through Oct. 28 after first issuing the waivers in March after Delta Air Lines DAL.N and United Airlines UAL. The FAA in August said it met its yearly goal of hiring 1,500 controllers but is still about 3,000 controllers behind staffing targets.
|
2256.0
|
2023-09-15 00:00:00 UTC
|
American Airlines (AAL) Gains As Market Dips: What You Should Know
|
AAL
|
https://www.nasdaq.com/articles/american-airlines-aal-gains-as-market-dips%3A-what-you-should-know-12
|
nan
|
nan
|
In the latest trading session, American Airlines (AAL) closed at $13.31, marking a +0.38% move from the previous day. The stock outpaced the S&P 500's daily loss of 1.22%. Meanwhile, the Dow lost 0.83%, and the Nasdaq, a tech-heavy index, lost 1.56%.
Coming into today, shares of the world's largest airline had lost 11.89% in the past month. In that same time, the Transportation sector lost 4.27%, while the S&P 500 gained 0.54%.
Investors will be hoping for strength from American Airlines as it approaches its next earnings release. The company is expected to report EPS of $0.74, up 7.25% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $13.59 billion, up 0.93% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.08 per share and revenue of $53.11 billion. These totals would mark changes of +516% and +8.46%, respectively, from last year.
Any recent changes to analyst estimates for American Airlines should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 8.54% lower within the past month. American Airlines is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note American Airlines's current valuation metrics, including its Forward P/E ratio of 4.3. For comparison, its industry has an average Forward P/E of 8.29, which means American Airlines is trading at a discount to the group.
Investors should also note that AAL has a PEG ratio of 0.08 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Transportation - Airline stocks are, on average, holding a PEG ratio of 0.35 based on yesterday's closing prices.
The Transportation - Airline industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 158, which puts it in the bottom 38% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow AAL in the coming trading sessions, be sure to utilize Zacks.com.
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.
|
In the latest trading session, American Airlines (AAL) closed at $13.31, marking a +0.38% move from the previous day. Investors should also note that AAL has a PEG ratio of 0.08 right now. To follow AAL in the coming trading sessions, be sure to utilize Zacks.com.
|
Click to get this free report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. In the latest trading session, American Airlines (AAL) closed at $13.31, marking a +0.38% move from the previous day. Investors should also note that AAL has a PEG ratio of 0.08 right now.
|
Click to get this free report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. In the latest trading session, American Airlines (AAL) closed at $13.31, marking a +0.38% move from the previous day. Investors should also note that AAL has a PEG ratio of 0.08 right now.
|
In the latest trading session, American Airlines (AAL) closed at $13.31, marking a +0.38% move from the previous day. Investors should also note that AAL has a PEG ratio of 0.08 right now. To follow AAL in the coming trading sessions, be sure to utilize Zacks.com.
|
2257.0
|
2023-09-15 00:00:00 UTC
|
Delta Air Lines (DAL) Stock Down 0.56% on Bearish Q3 View
|
AAL
|
https://www.nasdaq.com/articles/delta-air-lines-dal-stock-down-0.56-on-bearish-q3-view
|
nan
|
nan
|
Shares of Delta Air Lines, Inc. (DAL) fell 0.56% on Sep 14, closing the trading session at $39.33. The downside was due to the unfavorable guidance provided by DAL for the third quarter of 2023 due to high fuel prices and expenses related to non-fuel unit costs.
For third-quarter 2023, Delta now anticipates average fuel cost per gallon in the band of $2.75-$2.90 band (prior view: $2.50-$2.70). With fuel expenses being a significant input cost for the aviation space, the uptick in oil prices does not bode well for airlines.
Apart from rising fuel expenses, DAL is also burdened with expenses related to non-fuel unit costs. Non-fuel unit cost or cost per available seat mile (CASM: adjusted) for the September quarter is now expected to increase 1-2% (earlier estimate was a 1-3% decline) from third-quarter 2022 actuals. The uptick in non-fuel unit costs is due to higher-than-expected maintenance costs.
DAL now anticipates third-quarter 2023 adjusted earnings in the range of $1.85-$2.05 per share (prior view: $2.20-$2.50). The Zacks Consensus Estimate is currently pegged at $2.37 per share.
Third-quarter revenue (adjusted) growth is anticipated to be within the upper half of the prior guidance of 11-14% growth. The operating margin is expected to be around 13% (prior view: mid-teens). For third-quarter 2023, the carrier continues to expect capacity to increase 16% from third-quarter 2022 actuals.
Total revenue per available seat mile is anticipated to decline 2-3%from third-quarter 2022 actuals (earlier estimate was a 2-4% decline).
DAL is reaffirming its 2023 earnings (on an adjusted basis) in the range of $6-$7 per share.
Delta currently carries a Zacks Rank #3 (Hold).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Delta is not the only airline to increase projections for third-quarter 2023 fuel price per gallon. United Airlines (UAL),Southwest Airlines LUV, Alaska Air Group ALK and American Airlines (AAL) increased their fuel cost per gallon projections for the third quarter of 2023. United Airlines now expects the fuel cost per gallon in the $2.95-$3.05 band (the earlier guidance was in the $2.5-$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). Operating revenue per available seat mile for the third quarter of 2023 is now expected to decline in the 5-7% band from third-quarter 2022 actuals (the earlier projection was for a 3-7% decline).
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). Due to high fuel costs, the third-quarter adjusted pre-tax margin is now expected in the 10-12% range (earlier guidance was 14-16%). Total revenues are now expected to increase in the 1-2% range from third-quarter 2022 actuals (the earlier projection was for a 0-3% increase).
American Airlines now anticipates third-quarter 2023 average fuel cost per gallon in the band of $2.90-$3.00 band (prior view: $2.55-$2.65 band). Apart from rising fuel expenses, AAL is also burdened with the retroactive pay expense of almost $230 million. Due to high fuel and labor expenses, the third-quarter adjusted operating margin is now anticipated in the range of 4%-5% (prior view: 8-10%). AALnow anticipates third-quarter 2023 earnings in the range of $0.20-$0.30 per share (prior view: $0.85-$0.95).
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
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.
|
United Airlines (UAL),Southwest Airlines LUV, Alaska Air Group ALK and American Airlines (AAL) increased their fuel cost per gallon projections for the third quarter of 2023. Apart from rising fuel expenses, AAL is also burdened with the retroactive pay expense of almost $230 million. AALnow anticipates third-quarter 2023 earnings in the range of $0.20-$0.30 per share (prior view: $0.85-$0.95).
|
United Airlines (UAL),Southwest Airlines LUV, Alaska Air Group ALK and American Airlines (AAL) increased their fuel cost per gallon projections for the third quarter of 2023. 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 To read this article on Zacks.com click here. Apart from rising fuel expenses, AAL is also burdened with the retroactive pay expense of almost $230 million.
|
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 To read this article on Zacks.com click here. United Airlines (UAL),Southwest Airlines LUV, Alaska Air Group ALK and American Airlines (AAL) increased their fuel cost per gallon projections for the third quarter of 2023. Apart from rising fuel expenses, AAL is also burdened with the retroactive pay expense of almost $230 million.
|
United Airlines (UAL),Southwest Airlines LUV, Alaska Air Group ALK and American Airlines (AAL) increased their fuel cost per gallon projections for the third quarter of 2023. Apart from rising fuel expenses, AAL is also burdened with the retroactive pay expense of almost $230 million. AALnow anticipates third-quarter 2023 earnings in the range of $0.20-$0.30 per share (prior view: $0.85-$0.95).
|
2258.0
|
2023-09-15 00:00:00 UTC
|
Interesting AAL Put And Call Options For March 2024
|
AAL
|
https://www.nasdaq.com/articles/interesting-aal-put-and-call-options-for-march-2024
|
nan
|
nan
|
Investors in American Airlines Group Inc (Symbol: AAL) saw new options become available today, for the March 2024 expiration. One of the key inputs that goes into the price an option buyer is willing to pay, is the time value, so with 182 days until expiration the newly available contracts represent a possible opportunity for sellers of puts or calls to achieve a higher premium than would be available for the contracts with a closer expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new March 2024 contracts and identified one put and one call contract of particular interest.
The put contract at the $13.00 strike price has a current bid of $1.00. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $13.00, but will also collect the premium, putting the cost basis of the shares at $12.00 (before broker commissions). To an investor already interested in purchasing shares of AAL, that could represent an attractive alternative to paying $13.34/share today.
Because the $13.00 strike represents an approximate 3% 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 7.69% return on the cash commitment, or 15.43% 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 $13.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $14.00 strike price has a current bid of $1.15. If an investor was to purchase shares of AAL stock at the current price level of $13.34/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $14.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 13.57% if the stock gets called away at the March 2024 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 $14.00 strike highlighted in red:
Considering the fact that the $14.00 strike represents an approximate 5% 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 8.62% boost of extra return to the investor, or 17.29% 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 $13.34) to be 39%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Top YieldBoost Calls of the S&P 500 »
Also see:
Closed End Fund Screener
IQSI Videos
Institutional Holders of Amcor
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 $14.00 strike highlighted in red: Considering the fact that the $14.00 strike represents an approximate 5% 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 become available today, for the March 2024 expiration.
|
Below is a chart showing AAL's trailing twelve month trading history, with the $14.00 strike highlighted in red: Considering the fact that the $14.00 strike represents an approximate 5% 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 become available today, for the March 2024 expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new March 2024 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 $14.00 strike highlighted in red: Considering the fact that the $14.00 strike represents an approximate 5% 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 become available today, for the March 2024 expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new March 2024 contracts and identified one put and one call contract of particular interest.
|
At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new March 2024 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 $14.00 strike highlighted in red: Considering the fact that the $14.00 strike represents an approximate 5% 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 become available today, for the March 2024 expiration.
|
2259.0
|
2023-09-15 00:00:00 UTC
|
ANALYSIS-Investors glimpse opportunity in Europe's unloved mining shares
|
AAL
|
https://www.nasdaq.com/articles/analysis-investors-glimpse-opportunity-in-europes-unloved-mining-shares
|
nan
|
nan
|
By Samuel Indyk
LONDON, Sept 15 (Reuters) - Investors are finally seeing potential in European mining shares, as China's step-by-step economic stimulus is steadily laying the foundations for a recovery of the unloved sector.
The STOXX Europe 600 mining index .SXPP has fallen 15% this year, making it the worst performing sector in the region by some margin, with second-placed real estate .SX86P down 4.5% and the top-performing retail index .SXRP up 27%.
The metals and mining sector is typically used as a proxy for equity investors in Europe to gain exposure to China, given it is the world's largest commodities consumer, and it has sunk along with China's growth expectations.
The world's second-largest economy has been struggling after a brief post-COVID surge, dragged down by huge debt due to decades of infrastructure investment and a property downturn. Analysts forecast the economy will grow by just 5% this year, the slowest rate, outside of COVID years, since 1990.
But Beijing in recent weeks has taken targeted steps towards supporting key pockets of its economy, lifting the mining sector off its 31-month lows. In the last month, the mining index has risen nearly 10% compared with a gain of just 2.5% for the wider STOXX 600.
"China is building a wall of stimulus, but they're doing it brick by brick," said Nathan Sweeney, chief investment officer of multiasset at Marlborough Investment Management.
"At some point people will realise they have built the wall, but it just hasn't come all at once."
In the last three months, China has relaxed rules around home purchases and borrowing, and cut key interest rates. There are also new tax relief measures for small businesses and private investment in some infrastructure sectors, for example.
Sweeney says this wide range of measures could be a catalyst for an upturn in the metals and mining sector.
The STOXX basic resources index trades at over a 20% discount to the STOXX 600. Miners trade at a 12-month forward price-to-earnings ratio of 9.8, compared to 12.3 for the market, according to LSEG Datastream.
Shares in some of the industry heavyweights have taken a battering this year. Glencore GLEN.L and Boliden BOL.ST have dropped by more than 20%, while Anglo American AAL.L has lost 30%. The pan-European STOXX 600 .STOXX benchmark meanwhile, is up 7.5%.
Copper and iron ore have fared better. Three-month copper on the London Metal Exchange CMCU3 is flat for the year at $8,380 a tonne, while front-month Singapore iron ore futures SZZFc1 are up nearly 9%.
Considering China's heft in the commodities world - Morningstar estimates it accounts for over 50% of refined copper demand and about 70% of the seaborne iron ore trade - some of that resilience should eventually seep into mining stocks, analysts said.
"Obviously, the 800-pound gorilla from a primary metal demand perspective is China," Peter Mallin-Jones, mining analyst at UK investment bank Peel Hunt, said.
"I'm quite positive because I can see, certainly for the base metals, fairly significant demand drivers into markets that feel relatively tight," he said.
SECTOR IS KEY TO GOING ELECTRIC
Specifically, Mallin-Jones points to the global energy transition, as economies begin to decarbonise, which could bring a huge increase in demand from fast-growing nations such as India, Indonesia, Malaysia and Nigeria.
Copper is the backbone of the electric and electronic industries and is essential in upgrading power grids, building solar farms, wind turbines and electric vehicles.
The United States and China are expected to add record amounts of solar production capacity this year, with a projected extra 32 gigawatts and between 95 and 120 gigawatts, respectively.
"That's an enormous number and is a huge support for demand for copper and to an extent aluminium," UBS metals and mining analyst Daniel Major said.
Major does not believe stimulus in China will lead to the kind of explosion in commodities demand seen after 2008, when the country bounced back from the global financial crisis.
Accordingly, UBS has 'sell' ratings on diversified miners Rio Tinto and BHP Group BHPB.L and Major prefers companies with more direct exposure to copper.
Antofagasta ANTO.L, Europe's largest pure-play copper miner by market cap, Poland's KGHM KGH.WA and copper recycler Aurubis NAFG.DE are all down less than 12% this year, and have all relatively outperformed diversified miners Glencore, Rio Tinto and Anglo American, which have fallen between 14%-35%.
"The reality is the sector now looks attractive and a lot of bad news is in the price," Marlborough Investment Management's Sweeney said.
Mining stocks https://tmsnrt.rs/3LktHcD
Miners valuation https://tmsnrt.rs/3RfvPGf
Copper miners outperform https://tmsnrt.rs/3Pj2rwe
(Reporting by Samuel Indyk, editing by Amanda Cooper and Elaine Hardcastle)
((Samuel.Indyk@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.
|
Glencore GLEN.L and Boliden BOL.ST have dropped by more than 20%, while Anglo American AAL.L has lost 30%. By Samuel Indyk LONDON, Sept 15 (Reuters) - Investors are finally seeing potential in European mining shares, as China's step-by-step economic stimulus is steadily laying the foundations for a recovery of the unloved sector. Considering China's heft in the commodities world - Morningstar estimates it accounts for over 50% of refined copper demand and about 70% of the seaborne iron ore trade - some of that resilience should eventually seep into mining stocks, analysts said.
|
Glencore GLEN.L and Boliden BOL.ST have dropped by more than 20%, while Anglo American AAL.L has lost 30%. The STOXX Europe 600 mining index .SXPP has fallen 15% this year, making it the worst performing sector in the region by some margin, with second-placed real estate .SX86P down 4.5% and the top-performing retail index .SXRP up 27%. Antofagasta ANTO.L, Europe's largest pure-play copper miner by market cap, Poland's KGHM KGH.WA and copper recycler Aurubis NAFG.DE are all down less than 12% this year, and have all relatively outperformed diversified miners Glencore, Rio Tinto and Anglo American, which have fallen between 14%-35%.
|
Glencore GLEN.L and Boliden BOL.ST have dropped by more than 20%, while Anglo American AAL.L has lost 30%. The metals and mining sector is typically used as a proxy for equity investors in Europe to gain exposure to China, given it is the world's largest commodities consumer, and it has sunk along with China's growth expectations. Considering China's heft in the commodities world - Morningstar estimates it accounts for over 50% of refined copper demand and about 70% of the seaborne iron ore trade - some of that resilience should eventually seep into mining stocks, analysts said.
|
Glencore GLEN.L and Boliden BOL.ST have dropped by more than 20%, while Anglo American AAL.L has lost 30%. In the last month, the mining index has risen nearly 10% compared with a gain of just 2.5% for the wider STOXX 600. There are also new tax relief measures for small businesses and private investment in some infrastructure sectors, for example.
|
2260.0
|
2023-09-14 00:00:00 UTC
|
American Airlines (AAL) Stock Sinks As Market Gains: What You Should Know
|
AAL
|
https://www.nasdaq.com/articles/american-airlines-aal-stock-sinks-as-market-gains%3A-what-you-should-know-6
|
nan
|
nan
|
In the latest trading session, American Airlines (AAL) closed at $13.26, marking a -0.38% move from the previous day. This change lagged the S&P 500's daily gain of 0.84%. At the same time, the Dow added 0.96%, and the tech-heavy Nasdaq gained 0.81%.
Heading into today, shares of the world's largest airline had lost 13.8% over the past month, lagging the Transportation sector's loss of 5.68% and the S&P 500's gain of 0.19% in that time.
American Airlines will be looking to display strength as it nears its next earnings release. In that report, analysts expect American Airlines to post earnings of $0.75 per share. This would mark year-over-year growth of 8.7%. Meanwhile, our latest consensus estimate is calling for revenue of $13.59 billion, up 0.93% from the prior-year quarter.
AAL's full-year Zacks Consensus Estimates are calling for earnings of $3.09 per share and revenue of $53.11 billion. These results would represent year-over-year changes of +518% and +8.46%, respectively.
It is also important to note the recent changes to analyst estimates for American Airlines. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 8.31% lower. American Airlines is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that American Airlines has a Forward P/E ratio of 4.31 right now. This valuation marks a discount compared to its industry's average Forward P/E of 8.32.
Investors should also note that AAL has a PEG ratio of 0.08 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. AAL's industry had an average PEG ratio of 0.35 as of yesterday's close.
The Transportation - Airline industry is part of the Transportation sector. This group has a Zacks Industry Rank of 157, putting it in the bottom 38% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow AAL in the coming trading sessions, be sure to utilize Zacks.com.
4 Oil Stocks with Massive Upsides
Global demand for oil is through the roof... and oil producers are struggling to keep up. So even though oil prices are well off their recent highs, you can expect big profits from the companies that supply the world with "black gold."
Zacks Investment Research has just released an urgent special report to help you bank on this trend.
In Oil Market on Fire, you'll discover 4 unexpected oil and gas stocks positioned for big gains in the coming weeks and months. You don't want to miss these recommendations.
Download your free report now to see them.
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.
|
In the latest trading session, American Airlines (AAL) closed at $13.26, marking a -0.38% move from the previous day. AAL's full-year Zacks Consensus Estimates are calling for earnings of $3.09 per share and revenue of $53.11 billion. Investors should also note that AAL has a PEG ratio of 0.08 right now.
|
In the latest trading session, American Airlines (AAL) closed at $13.26, marking a -0.38% move from the previous day. Click to get this free report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. AAL's full-year Zacks Consensus Estimates are calling for earnings of $3.09 per share and revenue of $53.11 billion.
|
In the latest trading session, American Airlines (AAL) closed at $13.26, marking a -0.38% move from the previous day. Click to get this free report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. AAL's full-year Zacks Consensus Estimates are calling for earnings of $3.09 per share and revenue of $53.11 billion.
|
In the latest trading session, American Airlines (AAL) closed at $13.26, marking a -0.38% move from the previous day. AAL's full-year Zacks Consensus Estimates are calling for earnings of $3.09 per share and revenue of $53.11 billion. Investors should also note that AAL has a PEG ratio of 0.08 right now.
|
2261.0
|
2023-09-14 00:00:00 UTC
|
Airline Stock Roundup: AAL & SAVE's Q3 Fuel Cost Warning, GOL & AZUL's Traffic
|
AAL
|
https://www.nasdaq.com/articles/airline-stock-roundup%3A-aal-saves-q3-fuel-cost-warning-gol-azuls-traffic
|
nan
|
nan
|
In the past week, management of airline companies — American Airlines AAL and Spirit Airlines SAVE — increased their respective projections for third-quarter 2023 fuel price per gallon. With oil price moving north, some other airlines echoed similar sentiments and increased their respective fuel price per gallon projections for the September quarter. That story was covered in detail in the previous week’s writeup.
Latin American carriers, Gol Linhas GOL and Azul AZUL reported a double-digit increase in consolidated revenue passenger kilometers (a measure of air traffic) for the month of August on the back of upbeat air travel demand.
Recap of the Past Week’s Most Important Stories
1. 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) 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 third quarter (the earlier view was $1,090 million).
High fuel costs apart, the increase in labor costs, due to the deal with pilots, is also a reason behind 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 third-quarter adjusted operating margin by approximately 1.7 points. Operating margin is now expected in the 4-5% band (earlier expectation was 8-10%).
Due to high labor costs, third-quarter non-fuel unit costs are now projected to increase in the 4-5% band (earlier outlook had called for a 4-6% increase). Available seat miles (a measure of capacity) are now expected to increase 6-7% from third-quarter 2022 actuals (earlier estimate was a 5-7% increase).
High labor and fuel costs prompted management to slash its third-quarter earnings per share (excluding net special items) view to the range of 20-30 cents from 85-95 cents expected earlier. Labor costs associated with the deal with pilots are likely to hurt earnings to the tune of 23 cents. AAL currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
2. Spirit Airlines’ management now expects third-quarter fuel cost per gallon to be $3.06 compared with the earlier projection of $2.80. Fuel gallon consumption is still estimated to be $147 million for the third quarter. For third-quarter 2023, management now expects total revenues in the $1,245-$1,255 million range (earlier range: $1,300-$1,320 million). Adjusted operating margin is now expected to be between -14.5% and -15.5% (earlier view projected a decline of 5.5-7.5% from third-quarter 2022 actuals). The effective tax rate is projected to be 22.6%. Available seat miles are now anticipated to increase 13.4% from third-quarter 2022 actuals (earlier projection had called for a 13.7% increase).
3. For the month of August, Azul’s consolidated traffic increased 13.5% year over year. To match the increased demand situation, AZUL is expanding its capacity. In the same period, capacity grew 13.1% year over year. Since traffic growth was more than capacity expansion, the load factor (percentage of seats filled by passengers) increased 0.3 percentage points to 81.6% last month.
4. At GOL, the August readings for consolidated revenue passenger kilometers (a measure of traffic) and available seat kilometers (a measure of capacity) increased 11.6% and 7.7%, respectively, on a year-over-year basis. With traffic growth outpacing capacity expansion, the load factor for August 2023 improved to 84.4% from 81.5% in August 2022. The number of departures at GOL increased 17.8% year over year.
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 most airline stocks traded in the red in the past week. As a result, the NYSE ARCA Airline Index declined 1.56% over the period to $57.81. Over the course of the past six months, the sector tracker was flat.
What's Next in the Airline Space?
Stay tuned for the usual news updates in the space.
4 Oil Stocks with Massive Upsides
Global demand for oil is through the roof... and oil producers are struggling to keep up. So even though oil prices are well off their recent highs, you can expect big profits from the companies that supply the world with "black gold."
Zacks Investment Research has just released an urgent special report to help you bank on this trend.
In Oil Market on Fire, you'll discover 4 unexpected oil and gas stocks positioned for big gains in the coming weeks and months. You don't want to miss these recommendations.
Download your free report now to see them.
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
Gol Linhas Aereas Inteligentes S.A. (GOL) : Free Stock Analysis Report
American Airlines Group Inc. (AAL) : Free Stock Analysis Report
Spirit Airlines, Inc. (SAVE) : Free Stock Analysis Report
AZUL (AZUL) : 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.
|
In the past week, management of airline companies — American Airlines AAL and Spirit Airlines SAVE — increased their respective projections for third-quarter 2023 fuel price per gallon. 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). AAL currently carries a Zacks Rank #3 (Hold).
|
In the past week, management of airline companies — American Airlines AAL and Spirit Airlines SAVE — increased their respective projections for third-quarter 2023 fuel price per gallon. Click to get this free report Gol Linhas Aereas Inteligentes S.A. (GOL) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Spirit Airlines, Inc. (SAVE) : Free Stock Analysis Report AZUL (AZUL) : Free Stock Analysis Report To read this article on Zacks.com click here. 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).
|
In the past week, management of airline companies — American Airlines AAL and Spirit Airlines SAVE — increased their respective projections for third-quarter 2023 fuel price per gallon. Click to get this free report Gol Linhas Aereas Inteligentes S.A. (GOL) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Spirit Airlines, Inc. (SAVE) : Free Stock Analysis Report AZUL (AZUL) : Free Stock Analysis Report To read this article on Zacks.com click here. 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).
|
In the past week, management of airline companies — American Airlines AAL and Spirit Airlines SAVE — increased their respective projections for third-quarter 2023 fuel price per gallon. 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). AAL currently carries a Zacks Rank #3 (Hold).
|
2262.0
|
2023-09-14 00:00:00 UTC
|
The 3 Most Undervalued Transportation Stocks to Buy in September 2023
|
AAL
|
https://www.nasdaq.com/articles/the-3-most-undervalued-transportation-stocks-to-buy-in-september-2023
|
nan
|
nan
|
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Navigating the market of transportation stocks is overwhelming, especially with the rapid changes happening in the transport industry. However, some undervalued transportation stocks are still worth considering amidst the fluctuations. The transportation sector has seen significant volatility with economic recoveries, oil price dynamics, and technological advancements.
Nonetheless, this could allow discerning investors to buy top transportation stocks at bargain prices. One must thoroughly analyze the company’s financial performance, market standing, and potential to uncover the best transportation stocks. You can confidently identify high-quality investment opportunities by delving into these critical factors.
While the global economy is still rebounding from the effects of the pandemic, the transport industry remains a crucial driver of economic growth. Hence, with thorough research and strategic planning, investors can unearth valuable opportunities in the sea of transportation stocks. This article will aid you in doing so.
United Parcel Service (UPS)
Source: monticello / Shutterstock
Investors are always on the lookout for undervalued transportation stocks. One such stock that deserves attention is United Parcel Service (NYSE:UPS).
However, the sizzle fizzles somewhat in the six-month returns department. Shares have taken a 14% nosedive. This slump was fueled by a 10% revenue dip and a jaw-dropping 27% plunge in net income in the latest financial results.
Additionally, the company recently faced downgrades due to concerns over cost pressures and experienced a drop in revenue across all three segments.
Furthermore, UPS has been undergoing significant changes recently. The company emphasizes that its newly negotiated Teamsters contract is strategically designed to prioritize initial costs. By front-loading expenses, the company can effectively allocate resources and streamline operations for long-term financial success. This may have contributed to the -23% decrease in operating income to $2.98 billion. However, it is essential to note that the company has successfully negotiated an early retirement package for some pilots and secured a historic vote of approval from its workers for a new five-year labor deal.
Despite the recent financials and downgrades, these developments may indicate a positive shift. This shift is in the company’s long-term strategy to manage its costs more effectively.
Despite the current headwinds, UPS’ recent earnings beat, with a reported $2.54 earnings per share against an expected $2.50, reveals that it’s not all gloom for the logistics giant. This surprising resilience might signal a worthwhile investment opportunity. However, on this list, this is perhaps the riskiest stock pick.
J.B. Hunt Transport Services (JBHT)
Source: IM_photo / Shutterstock
J.B. Hunt Transport Services (NASDAQ:JBHT) faced a downturn in the second quarter of 2023. It recorded a 26% drop in net income and an 18% decrease in revenue year-over-year. However, this downturn may position J.B. Hunt as an undervalued transportation stock. The recent decline in earnings, highlighted by a 5% miss on expected EPS, is countered by the company’s active response to moderating freight pressures and a focus on operational efficiencies.
Moreover, the recent NHTSA requirements for automatic emergency braking in heavy trucks and buses could be a long-term boon for the company. Additionally, despite a rise in class 8 truck orders in June, the numbers remained seasonally soft, signaling a potential growth opportunity for transportation stocks like J.B. Hunt.
This scenario, while not ideal, potentially positions J.B. Hunt as an undervalued transportation stock. Although the recent financials may cause concern, it is important to consider the broader landscape. Investors should take a long-term view and consider the potential upside for J.B. Hunt amidst the current challenges.
American Airlines Group (AAL)
Source: GagliardiPhotography / Shutterstock.com
American Airlines Group (NASDAQ:AAL) has experienced a turbulent ride recently, with a dip of 11.15% during the past month.
Despite this, its Q2 2023 earnings reflect strong financial performance, showcasing a net income of $1.34 billion, up by 181% year over year. Additionally, a reported EPS of $1.92 beat expectations by 20.43%. The numbers suggest this legacy carrier might be a great pick among undervalued transportation stocks currently on the market.
Furthermore, it is essential to consider the broader context in which American Airlines operates. The company made headlines recently due to its violation of tarmac delay regulations. The fine is the biggest ever for violating the rule. However, despite the rising labor actions across the U.S., the airline managed to secure a new labor deal. Moreover, airline bookings remain strong, according to the latest data. In addition, the company is reportedly in talks with Boeing (NYSE:BA) and Airbus on jet orders, which further builds on this thesis.
In conclusion, American Airlines Group has demonstrated resilience by posting impressive financials amid a challenging economic backdrop. The strength in bookings and ongoing discussions for jet orders further support the growth potential.
While the recent decline in stock value and regulatory challenges cannot be ignored, the latest financial data and positive operational updates indicate an attractive opportunity. This makes American Airlines Group potentially appealing for investors seeking undervalued transportation stocks.
On the publication date, Faizan Farooque did not hold (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.
Faizan Farooque is a contributing author for InvestorPlace.com and numerous other financial sites. Faizan has several years of experience in analyzing the stock market and was a former data journalist at S&P Global Market Intelligence. His passion is to help the average investor make more informed decisions regarding their portfolio.
More From InvestorPlace
Musk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In.
ChatGPT IPO Could Shock the World, Make This Move Before the Announcement
It doesn’t matter if you have $500 or $5 million. Do this now.
The post The 3 Most Undervalued Transportation Stocks to Buy in September 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.
|
American Airlines Group (AAL) Source: GagliardiPhotography / Shutterstock.com American Airlines Group (NASDAQ:AAL) has experienced a turbulent ride recently, with a dip of 11.15% during the past month. However, it is essential to note that the company has successfully negotiated an early retirement package for some pilots and secured a historic vote of approval from its workers for a new five-year labor deal. The recent decline in earnings, highlighted by a 5% miss on expected EPS, is countered by the company’s active response to moderating freight pressures and a focus on operational efficiencies.
|
American Airlines Group (AAL) Source: GagliardiPhotography / Shutterstock.com American Airlines Group (NASDAQ:AAL) has experienced a turbulent ride recently, with a dip of 11.15% during the past month. Additionally, the company recently faced downgrades due to concerns over cost pressures and experienced a drop in revenue across all three segments. J.B. Hunt Transport Services (JBHT) Source: IM_photo / Shutterstock J.B. Hunt Transport Services (NASDAQ:JBHT) faced a downturn in the second quarter of 2023.
|
American Airlines Group (AAL) Source: GagliardiPhotography / Shutterstock.com American Airlines Group (NASDAQ:AAL) has experienced a turbulent ride recently, with a dip of 11.15% during the past month. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Navigating the market of transportation stocks is overwhelming, especially with the rapid changes happening in the transport industry. One must thoroughly analyze the company’s financial performance, market standing, and potential to uncover the best transportation stocks.
|
American Airlines Group (AAL) Source: GagliardiPhotography / Shutterstock.com American Airlines Group (NASDAQ:AAL) has experienced a turbulent ride recently, with a dip of 11.15% during the past month. This shift is in the company’s long-term strategy to manage its costs more effectively. The numbers suggest this legacy carrier might be a great pick among undervalued transportation stocks currently on the market.
|
2263.0
|
2023-09-14 00:00:00 UTC
|
S&P Futures Climb Ahead of Key U.S. PPI Data, ECB Decision in Focus
|
AAL
|
https://www.nasdaq.com/articles/sp-futures-climb-ahead-of-key-u.s.-ppi-data-ecb-decision-in-focus
|
nan
|
nan
|
September S&P 500 futures (ESU23) are trending up +0.29% this morning after three major U.S. benchmark indices ended the regular session mixed as investors digested the latest U.S. inflation report while also bracing for crucial U.S. PPI data.
In Wednesday’s trading session, Moderna Inc (MRNA) climbed over +3% after the drugmaker said its flu vaccine mRNA-1010 met the primary goal in a late-stage trial. Also, JB Hunt Transport Services Inc (JBHT) gained more than +4% following the company’s announcement that it anticipates a gradual rise in freight, attributed to retailers largely reducing excess inventories. In addition, Ford Motor Company (F) rose over +1% after the auto giant announced plans to double the production of its hybrid F-150 pickup trucks in 2024. On the bearish side, American Airlines Group (AAL) plunged more than -5% after the carrier cut its Q3 adjusted EPS guidance amid a jump in jet fuel prices.
The Labor Department’s report on Wednesday showed consumer prices rose +0.6% m/m in August, matching the consensus figure. On an annual basis, headline inflation rose +3.7% in August, accelerating from July’s +3.2% reading. Economists had expected a growth of +3.6% y/y. At the same time, U.S. core CPI eased to +4.3% y/y in August from +4.7% y/y in July, the smallest increase in almost two years.
“Not a great CPI report, but not something that changes the basic Fed outlook. This Fed is not itching to hike again, and we think it would take significantly more to push the FOMC to actually deliver another increase - with our base case remaining, the Fed is done here,” said Krishna Guha, vice chairman at Evercore ISI.
Meanwhile, U.S. rate futures have priced in a 3.0% chance of a 25 basis point rate increase next week and a 39.0% probability of a 25 basis point rate hike at November’s monetary policy meeting.
On the earnings front, notable companies like Adobe (ADBE), Copart (CPRT), and Lennar (LEN) are set to report their quarterly figures today.
In other news, shares of Arm Holdings Plc are due to start trading on Thursday on the Nasdaq Global Select Market, having priced its initial public offering at $51 per share, the top end of the range.
Today, all eyes are focused on the U.S. Producer Price Index (PPI) in a couple of hours. Economists, on average, forecast that August U.S. PPI will stand at +0.4% m/m and +1.2% y/y, compared to the previous values of +0.3% m/m and +0.8% y/y.
Also, investors will likely focus on U.S. Retail Sales data, which came in at +0.7% m/m in July. Economists foresee the August figure to be +0.2% m/m.
U.S. Core PPI reading will also be closely watched today. Economists expect August figures to be +0.2% m/m and +2.2% y/y, compared to the previous numbers of +0.3% m/m and +2.4% y/y.
U.S. Core Retail Sales data will come in today. Economists foresee this figure to stand at +0.4% m/m in August, compared to the previous number of +1.0% m/m.
U.S. Initial Jobless Claims data will be reported today as well. Economists estimate this figure to be 225K, compared to last week’s value of 216K.
In the bond markets, United States 10-year rates are at 4.258%, up +0.24%.
The Euro Stoxx 50 futures are up +0.05% this morning as market participants exercised caution in anticipation of the European Central Bank’s monetary policy decision. Gains in mining and energy stocks are leading the overall market higher. At the same time, automobile stocks underperformed on Thursday following China’s strong criticism of the European Union’s investigation into electric vehicle subsidies. The ECB meets later in the session, and policymakers face the dilemma of either increasing the key interest rate to a record level or pausing the extended period of rate hikes due to the worsening economic situation in the Eurozone. Money markets are pricing in a two-thirds chance that the ECB will raise interest rates by a quarter of a percentage point. In corporate news, Deliveroo Plc (ROO.L.EB) climbed over +4% following a report from activist investor Sachem Capital, indicating their belief that the food delivery company might become a takeover target.
The European economic data slate is mainly empty on Thursday.
Asian stock markets today closed in the green. China’s Shanghai Composite Index (SHCOMP) closed up +0.11%, and Japan’s Nikkei 225 Stock Index (NIK) closed up +1.41%.
China’s Shanghai Composite today closed slightly higher, with investors continuing to seek policy measures and signs of an economic recovery. According to an unnamed senior central bank official, a publication affiliated with the People’s Bank of China said on Wednesday that China’s central bank intends to stimulate demand and support a moderate price rebound. Meanwhile, mainland property developers traded in Hong Kong retreated on Thursday after Moody’s cut China’s property sector’s outlook to negative from stable, citing economic growth challenges. Investor focus is now squarely on Chinese retail sales and industrial production data for August, due on Friday.
Japan’s Nikkei 225 Stock Index closed sharply higher today, touching its highest level in a week after a series of weak economic readings bolstered bets that the Bank of Japan will need to retain negative interest rates for the foreseeable future. Also, Economic Revitalization Minister Yoshitaka Shindo emphasized the necessity for strong economic measures. Data on Thursday indicated a sharp drop in Japanese core machinery orders for July, reflecting a decline in business confidence among the country’s largest manufacturers. Separately, data showed that Japan’s industrial production declined in July, marking the third drop since the beginning of the year. Meanwhile, chip stocks gained ground on Thursday, with chip-making equipment maker Tokyo Electron climbing over +3% and chip-testing equipment maker Advantest rising about +2%. In other corporate news, H.I.S. Co Ltd plunged over -7% even after the travel agent narrowed its net loss for the nine months through July. The Nikkei Volatility, which takes into account the implied volatility of Nikkei 225 options, closed down -2.49% to 16.07.
The Japanese July Core Machinery Orders came in at -1.1% m/m and -13.0% y/y, weaker than expectations of -0.9% m/m and -10.7% y/y.
The Japanese July Industrial Production stood at -1.8% m/m, stronger than expectations of -2.0% m/m.
Pre-Market U.S. Stock Movers
Purecycle Technologies Holdings Corp (PCT) plunged more than -14% in pre-market trading after declaring force majeure due to storm impact on Ironton.
MetLife Inc (MET) gained over +1% in pre-market trading after Jefferies upgraded the stock to Buy from Hold.
OKYO Pharma (OKYO) tumbled more than -20% in pre-market trading after the company filed to sell its ordinary shares in an underwritten public offering.
Carnival Corporation (CCL) rose over +1% in pre-market trading after Redburn upgraded the stock to Buy from Neutral.
First Solar Inc (FSLR) climbed more than +2% in pre-market trading after BMO Capital upgraded the stock to Outperform from Market Perform.
You can see more pre-market stock movers here
Today’s U.S. Earnings Spotlight: Thursday - September 14th
Adobe (ADBE), Copart (CPRT), Lennar (LEN), MYT Netherlands (MYTE), Innate Pharma (IPHA), eGain (EGAN).
More Stock Market News from Barchart
Stocks Waver after a Mixed U.S. CPI Report
Buy the Dip: These 2 Stocks Have Traded Lower for 5 Consecutive Days
3 Stocks to Avoid as Oil Prices Soar
What Would $10,000 Invested in Tesla Stock at its IPO Be Worth 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, American Airlines Group (AAL) plunged more than -5% after the carrier cut its Q3 adjusted EPS guidance amid a jump in jet fuel prices. September S&P 500 futures (ESU23) are trending up +0.29% this morning after three major U.S. benchmark indices ended the regular session mixed as investors digested the latest U.S. inflation report while also bracing for crucial U.S. PPI data. Also, JB Hunt Transport Services Inc (JBHT) gained more than +4% following the company’s announcement that it anticipates a gradual rise in freight, attributed to retailers largely reducing excess inventories.
|
On the bearish side, American Airlines Group (AAL) plunged more than -5% after the carrier cut its Q3 adjusted EPS guidance amid a jump in jet fuel prices. On the earnings front, notable companies like Adobe (ADBE), Copart (CPRT), and Lennar (LEN) are set to report their quarterly figures today. In other news, shares of Arm Holdings Plc are due to start trading on Thursday on the Nasdaq Global Select Market, having priced its initial public offering at $51 per share, the top end of the range.
|
On the bearish side, American Airlines Group (AAL) plunged more than -5% after the carrier cut its Q3 adjusted EPS guidance amid a jump in jet fuel prices. Meanwhile, U.S. rate futures have priced in a 3.0% chance of a 25 basis point rate increase next week and a 39.0% probability of a 25 basis point rate hike at November’s monetary policy meeting. Japan’s Nikkei 225 Stock Index closed sharply higher today, touching its highest level in a week after a series of weak economic readings bolstered bets that the Bank of Japan will need to retain negative interest rates for the foreseeable future.
|
On the bearish side, American Airlines Group (AAL) plunged more than -5% after the carrier cut its Q3 adjusted EPS guidance amid a jump in jet fuel prices. Economists had expected a growth of +3.6% y/y. Core PPI reading will also be closely watched today.
|
2264.0
|
2023-09-13 00:00:00 UTC
|
Stocks Waver after a Mixed U.S. CPI Report
|
AAL
|
https://www.nasdaq.com/articles/stocks-waver-after-a-mixed-u.s.-cpi-report
|
nan
|
nan
|
What you need to know…
The S&P 500 Index ($SPX) (SPY) Wednesday closed up +0.12%, the Dow Jones Industrials Index ($DOWI) (DIA) closed down -0.20%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed up +0.38%.
Stocks on Wednesday settled mixed. The broader market posted modest gains Wednesday after a mixed U.S. consumer price report. U.S. consumer prices in August increased to +3.7% y/y from +3.2% y/y in July, stronger than expectations of +3.6% y/y. However, stocks found support after Aug core CPI eased to +4.3% y/y from +4.7% y/y in July, right on expectations and the smallest increase in almost two years.
Gains in U.S. stock index futures were limited by negative carryover from a slide in European stocks as the 10-year German bund yield jumped to a 3-week high after Reuters reported that the ECB's new economic estimates due to be released Thursday will show a Eurozone inflation forecast for 2024 above 3%, bolstering the case for the ECB to raise interest rates at Thursday’s policy meeting.
The markets are discounting the odds at 2% for a +25 bp rate hike at the September 20 FOMC meeting and 40% for that +25 bp rate hike at the November 1 FOMC meeting.
Global bond yields on Wednesday were mixed. The 10-year T-note yield fell from a 3-week high of 4.342% and finished down -4.1 bp at 4.239%. The 10-year German bund yield rose to a 3-week high of 2.690% and finished up +0.8 bp at 2.651%. The 10-year UK gilt yield fell to a 1-1/2 week low of 4.342% and finished down -6.9 bp at 4.347%.
Overseas stock markets Wednesday settled lower. The Euro Stoxx 50 closed -0.44%. China’s Shanghai Composite Index closed -0.45%. Japan’s Nikkei Stock Index closed -0.21%.
Reuters reported that the ECB's new economic estimates, due to be released Thursday, will show a Eurozone inflation forecast for 2024 above 3%.
Eurozone Jul industrial production fell -1.1% m/m, weaker than expectations of -0.9% m/m and the biggest decline in 4 months.
Japan Aug PPI eased to +3.2% y/y from +3.4% y/y in July, better than expectations of +3.3% y/y.
The Japan Q3 BSI large manufacturing business conditions rose +5.8 to 5.4, the highest since Q4 of 2021.
Today’s stock movers…
JB Hunt Transport Services (JBHT) closed up more than +4% to lead gainers in the S&P 500 after the company said it expects a gradual increase of freight as retailers have mostly whittled down excess inventories.
Moderna (MRNA) closed up more than +3% to lead gainers in the Nasdaq 100 after it said a reformulated version of its messenger-RNA-based flu shot met its primary goals in a final-stage trial, paving the way for it to seek FDA approval for the vaccine.
Morgan Stanley (MS) closed up more than +2%, adding to Tuesday’s +2% gain after investment manager Simkowitz said, “We are more confident now than any time this year about an improved outlook for 2024.”
Westrock (WRK) closed up more than +2%, adding to Tuesday’s +2% gain after Smurfit Kappa Group Plc agreed to acquire the company in a $11.2 billion deal.
Ford Motor (F) closed up more than +1% after UBS double-upgraded the stock to buy from sell with a price target of $15.
Commercial real estate brokerage stocks tumbled Wednesday after the CFO of CBRE Group said the market has become more challenging as interest rates rose recently, and it expects Q3 EPS to fall in the “high-teens range,” weaker than the consensus for flat earnings. As a result, CBRE Group (CBRE) closed down more than -6% to lead losers in the S&P 500. Also, Jones Lang LaSalle (JLL) closed down more than -7%, Newmark Group (NMRK) closed down more than -6%, and Cushman & Wakefield (CWK) closed down more than -5%.
3M Co (MMM) closed down more than -5% to lead losers in the Dow Jones Industrials after the company pushed out the spinoff of its healthcare division to the first half of 2024 from an earlier target of late 2023 and cautioned on the outlook for next year.
Netflix (NFLX) closed down more than -5% to lead losers in the Nasdaq 100 after the CFO said at the Bank of America Media, Communications & Entertainment Conference that it needs to get back to revenue growth in 2024 and it doesn’t see a way to profit in live sports.
Airline stocks were under pressure after American Airlines Group cut its guidance for Q3 adjusted EPS to 20-30 cents from a previous estimate of 85-95 cents, well below the consensus of 65 cents. As a result, American Airlines Group (AAL) closed down more than -5%. Also, United Airlines Holdings (UAL) closed down more than -3%. In addition, Delta Air Lines (DAL) and Alaska Air Group (ALK) closed down more than -2%, and Southwest Airlines (LUV) closed down more than -1%.
Regional bank stocks retreated Wednesday on comments from Zions Bancorp CEO Simmons, who said they are seeing a slowdown in loan demand. As a result, U.S. Bancorp (USB) closed down more than -5%, and Truist Financial (TFC) closed down more than -4%. Also, Citizens Financial Group (CFG) closed down more than -3%, and Comerica (CMA), M&T Bank (MTB), Huntington Bancshares (HBAN), Zions Bancorp (ZION), and KeyCorp (KEY) closed down more than -2%.
Applied Optoelectronics (AAOI) closed down more than -19% after it terminated its agreement to sell manufacturing facilities in China to Yuhan Optoelectronic Technology.
Apple (AAPL) closed down more than -1% after China flagged “security incidents” with Apple’s iPhones, the government’s first comments after news reports that it was restricting the use of Apple products in sensitive departments and state-owned companies.
Across the markets…
December 10-year T-notes (ZNZ23) on Wednesday closed up +4.5 ticks, and the 10-year T-note yield fell -4.1 bp to 4.239%. Dec T-note prices Wednesday recovered from a 3-week low and moved higher, and the 10-year T-note yield fell back from a 3-week high of 4.342%. T-notes found support Wednesday after U.S. Aug core CPI eased to +4.3% y/y from +4.7% y/y in July, right on expectations and the slowest pace of increase in almost two years. T-notes also moved higher on strong demand for the Treasury’s $20 billion auction of re-opened 30-year T-bonds with a bid-to-cover ratio of 2.46, better than the 10-auction average of 2.39.
T-notes Wednesday initially fell on negative carryover from a slump in 10-year German bunds to a 3-week low. Also, the stronger-than-expected U.S. Aug CPI was bearish for T-notes. In addition, inflation expectations rose early Wednesday and weighed on T-notes after the 10-year breakeven inflation rate posted a 4-week high of 2.371% before falling back.
More Stock Market News from Barchart
Strength in the U.S. CPI Report Boosts the Dollar
Buy the Dip: These 2 Stocks Have Traded Lower for 5 Consecutive Days
3 Stocks to Avoid as Oil Prices Soar
What Would $10,000 Invested in Tesla Stock at its IPO Be Worth Now?
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
As a result, American Airlines Group (AAL) closed down more than -5%. Moderna (MRNA) closed up more than +3% to lead gainers in the Nasdaq 100 after it said a reformulated version of its messenger-RNA-based flu shot met its primary goals in a final-stage trial, paving the way for it to seek FDA approval for the vaccine. Commercial real estate brokerage stocks tumbled Wednesday after the CFO of CBRE Group said the market has become more challenging as interest rates rose recently, and it expects Q3 EPS to fall in the “high-teens range,” weaker than the consensus for flat earnings.
|
As a result, American Airlines Group (AAL) closed down more than -5%. Gains in U.S. stock index futures were limited by negative carryover from a slide in European stocks as the 10-year German bund yield jumped to a 3-week high after Reuters reported that the ECB's new economic estimates due to be released Thursday will show a Eurozone inflation forecast for 2024 above 3%, bolstering the case for the ECB to raise interest rates at Thursday’s policy meeting. Reuters reported that the ECB's new economic estimates, due to be released Thursday, will show a Eurozone inflation forecast for 2024 above 3%.
|
As a result, American Airlines Group (AAL) closed down more than -5%. What you need to know… The S&P 500 Index ($SPX) (SPY) Wednesday closed up +0.12%, the Dow Jones Industrials Index ($DOWI) (DIA) closed down -0.20%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed up +0.38%. Gains in U.S. stock index futures were limited by negative carryover from a slide in European stocks as the 10-year German bund yield jumped to a 3-week high after Reuters reported that the ECB's new economic estimates due to be released Thursday will show a Eurozone inflation forecast for 2024 above 3%, bolstering the case for the ECB to raise interest rates at Thursday’s policy meeting.
|
As a result, American Airlines Group (AAL) closed down more than -5%. As a result, CBRE Group (CBRE) closed down more than -6% to lead losers in the S&P 500. Dec T-note prices Wednesday recovered from a 3-week low and moved higher, and the 10-year T-note yield fell back from a 3-week high of 4.342%.
|
2265.0
|
2023-09-13 00:00:00 UTC
|
3 Stocks to Avoid as Oil Prices Soar
|
AAL
|
https://www.nasdaq.com/articles/3-stocks-to-avoid-as-oil-prices-soar
|
nan
|
nan
|
Oil prices have been soaring in recent weeks, and crude futures (CLV23) just reached their highest point since last November on the back of ongoing supply cuts. Rising oil prices are already having a significant impact on the airline industry, which is one of the largest consumers of fuel. Jet fuel accounts for a significant portion of operating expenses at most airlines, and carriers without effective fuel cost hedging - or those operating on a low-cost model - are particularly sensitive to oil price variations.
For example, in a regulatory filing, American Airlines (AAL) once warned, “we estimate that a one cent per gallon increase in the price of aircraft fuel would increase our 2021 annual fuel expense by $38 million" [emphasis added].
So, even as airlines coast off the fumes of robust travel demand during the summer months, it's not all smooth sailing for the group. In fact, two of these names just issued profit warnings today in response to the challenging environment, sending stocks lower across the airline industry.
Against a backdrop of rising fuel expenses, here are three stocks to skip as oil prices keep climbing.
AAL: Antitrust Troubles… and Zero Hedging
American Airlines (AAL), a global aviation giant, finds itself in a turbulent spot. Earlier this summer, antitrust regulators forced the breakup of American's partnership with JetBlue Airways (JBLU) - and now energy costs are on the upswing, with North American fuel prices up more than 4% in the past month.
Notably, American Airlines does not hedge its fuel expenses - a strategy that has helped other carriers to cushion the blow of unusually high oil prices in the recent past.
American Airlines cut its earnings forecast drastically today, with the new 3Q guidance set between 20 and 30 cents from share - down considerably from 85 to 95 cents previously. Along with higher fuel costs, the airline cited costs associated with its ALPA collective bargaining agreement.
As for stock performance, American Airlines is a clear laggard. Year-to-date, it's trailed both the market and the industry, managing only a 4.3% gain. That compares to a return of 16.2% for the S&P 500 Index ($SPX) and 4.7% for the U.S. Global Jets ETF (JETS).
www.barchart.com
Analysts are appropriately cautious, with a consensus hold rating on the stock. Only 3 out of 15 analysts recommend a strong buy - although the mean price target is $18.25, implying 37% potential upside.
www.barchart.com
On the earnings front, analysts are expecting a 58.1% year-over-year decline in Q4 2023 and a 2.6% decline in FY 2024. These forecasts reflect the challenges the airline faces, including rising fuel costs, reduced demand, and heightened competition.
www.barchart.com
Considering these factors, investors may find it prudent to steer clear of American Airlines stock as oil prices soar. The road ahead seems to promise more challenges than rewards.
SAVE: Waiting on a White Knight in JetBlue
Spirit Airlines (SAVE) operates as a low-cost carrier primarily in the U.S., Latin America, and the Caribbean. Their budget-friendly approach relies on packing flights, keeping operational costs down, and charging for extras. However, 2023 hasn't been smooth sailing for SAVE. They've grappled with rising oil prices, newly emerging Covid-19 variants, workforce shortages, and regulatory threats to a proposed buyout bid from JetBlue - all of which have cast shadows over the stock.
Year-to-date, SAVE's price has slipped by more than 12%, considerably underperforming the broader market and its peers in the airline industry.
www.barchart.com
The mean target price of $19.93 suggests 22% potential upside from current levels. However, only one of the eight analysts tracking the stock recommends buying it, with a consensus rating of hold.
www.barchart.com
Like American, Spirit Airlines slashed its outlook earlier today. Between higher fuel prices and steeply discounted travel bookings, SAVE now sees Q3 revenue between $1.245 billion and $1.255 billion, compared to its prior guidance of $1.3 billion to $1.32 billion.
Already, analysts were projecting a staggering 2,600% year-over-year earnings drop in Q3 2023, and a 141.67% decline in Q4 2023.
www.barchart.com
SAVE’s earnings results have been consistently disappointing, as it has missed estimates in three of the last four quarters, with a 4% operating margin compared to the industry average of 6%.
Given these factors, it's advisable for investors to avoid SAVE as oil prices rise, since the carrier faces more challenges than opportunities ahead.
JBLU: Crumbling Under the Regulatory Pressure
JetBlue Airways (JBLU) is a low-cost carrier known for affordable fares, with revenue augmented by charging for extras, like baggage and seat selection. Their business model hinges on filling seats, keeping costs low, and additional fees to generate profits.
However, they've encountered some major strategic challenges. First, their Northeast Alliance partnership with American Airlines was busted up over antitrust concerns - and now those same concerns over competition could sink its pending merger with Spirit Airlines. The potentially lengthy legal battle could be a distraction for JetBlue for quite some time.
JBLU has declined by 24.5% year-to-date, completely sitting out the broader market's 2023 rally.
www.barchart.com
The mean target price from analysts is $7.28, suggesting potential upside of 48%, but analysts are divided. One calls the stock a strong buy, one names it a strong sell, and the remaining 7 deem it a hold.
www.barchart.com
JetBlue cut its 2023 outlook last month following its forced breakup with AAL, but has yet to update its guidance in response to rising fuel costs.
Analysts, on average, expect earnings to crater more than 100% in the current quarter from the year-ago period, with the consensus calling for a loss of $0.11 per share - compared to EPS of $0.21 last year.
www.barchart.com
Conclusion
All three of these airline stocks face formidable challenges amidst surging oil prices, as demonstrated by today's latest guidance cuts. Therefore, our recommendation to investors is to steer clear of these stocks while energy costs are elevated - especially while the JBLU/SAVE merger remains at serious regulatory risk.
On the date of publication, Ebube Jones 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.
|
For example, in a regulatory filing, American Airlines (AAL) once warned, “we estimate that a one cent per gallon increase in the price of aircraft fuel would increase our 2021 annual fuel expense by $38 million" [emphasis added]. AAL: Antitrust Troubles… and Zero Hedging American Airlines (AAL), a global aviation giant, finds itself in a turbulent spot. www.barchart.com JetBlue cut its 2023 outlook last month following its forced breakup with AAL, but has yet to update its guidance in response to rising fuel costs.
|
For example, in a regulatory filing, American Airlines (AAL) once warned, “we estimate that a one cent per gallon increase in the price of aircraft fuel would increase our 2021 annual fuel expense by $38 million" [emphasis added]. AAL: Antitrust Troubles… and Zero Hedging American Airlines (AAL), a global aviation giant, finds itself in a turbulent spot. www.barchart.com JetBlue cut its 2023 outlook last month following its forced breakup with AAL, but has yet to update its guidance in response to rising fuel costs.
|
For example, in a regulatory filing, American Airlines (AAL) once warned, “we estimate that a one cent per gallon increase in the price of aircraft fuel would increase our 2021 annual fuel expense by $38 million" [emphasis added]. AAL: Antitrust Troubles… and Zero Hedging American Airlines (AAL), a global aviation giant, finds itself in a turbulent spot. www.barchart.com JetBlue cut its 2023 outlook last month following its forced breakup with AAL, but has yet to update its guidance in response to rising fuel costs.
|
For example, in a regulatory filing, American Airlines (AAL) once warned, “we estimate that a one cent per gallon increase in the price of aircraft fuel would increase our 2021 annual fuel expense by $38 million" [emphasis added]. AAL: Antitrust Troubles… and Zero Hedging American Airlines (AAL), a global aviation giant, finds itself in a turbulent spot. www.barchart.com JetBlue cut its 2023 outlook last month following its forced breakup with AAL, but has yet to update its guidance in response to rising fuel costs.
|
2266.0
|
2023-09-13 00:00:00 UTC
|
Consumer Sector Update for 09/13/2023: DAL, UAL, AAL, CBRL, ZGN
|
AAL
|
https://www.nasdaq.com/articles/consumer-sector-update-for-09-13-2023%3A-dal-ual-aal-cbrl-zgn
|
nan
|
nan
|
Consumer stocks were higher late Wednesday afternoon with the Consumer Staples Select Sector SPDR Fund (XLP) increasing 0.2% and the Consumer Discretionary Select Sector SPDR Fund (XLY) adding 0.5%.
In company news, Delta Air Lines (DAL) and United Airlines (UAL) are facing an antitrust class action lawsuit over allegedly conspiring to increase airfares in the US by cutting the number of available seats on domestic flights. Delta shares fell 2.7%, and United dropped 3.8%.
American Airlines (AAL) said it now expects Q3 adjusted earnings of $0.20 to $0.30 per share, down from its prior outlook of $0.85 to $0.95. Analysts polled by Capital IQ expect $0.66. The shares dropped 5.8%.
Cracker Barrel Old Country Store (CBRL) shares fell 3% after fiscal Q4 revenue trailed estimates amid "recent traffic challenges."
Ermenegildo Zegna (ZGN) reported H1 adjusted EPS of 0.20 euro ($0.21), up from 0.07 euro a year earlier. Revenue for the six months ended June 30 was 903.1 million euros, compared with 729 million euros a year earlier. The shares fell 2.3%.
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) said it now expects Q3 adjusted earnings of $0.20 to $0.30 per share, down from its prior outlook of $0.85 to $0.95. In company news, Delta Air Lines (DAL) and United Airlines (UAL) are facing an antitrust class action lawsuit over allegedly conspiring to increase airfares in the US by cutting the number of available seats on domestic flights. Cracker Barrel Old Country Store (CBRL) shares fell 3% after fiscal Q4 revenue trailed estimates amid "recent traffic challenges."
|
American Airlines (AAL) said it now expects Q3 adjusted earnings of $0.20 to $0.30 per share, down from its prior outlook of $0.85 to $0.95. Consumer stocks were higher late Wednesday afternoon with the Consumer Staples Select Sector SPDR Fund (XLP) increasing 0.2% and the Consumer Discretionary Select Sector SPDR Fund (XLY) adding 0.5%. Delta shares fell 2.7%, and United dropped 3.8%.
|
American Airlines (AAL) said it now expects Q3 adjusted earnings of $0.20 to $0.30 per share, down from its prior outlook of $0.85 to $0.95. Delta shares fell 2.7%, and United dropped 3.8%. Cracker Barrel Old Country Store (CBRL) shares fell 3% after fiscal Q4 revenue trailed estimates amid "recent traffic challenges."
|
American Airlines (AAL) said it now expects Q3 adjusted earnings of $0.20 to $0.30 per share, down from its prior outlook of $0.85 to $0.95. Consumer stocks were higher late Wednesday afternoon with the Consumer Staples Select Sector SPDR Fund (XLP) increasing 0.2% and the Consumer Discretionary Select Sector SPDR Fund (XLY) adding 0.5%. Delta shares fell 2.7%, and United dropped 3.8%.
|
2267.0
|
2023-09-13 00:00:00 UTC
|
Consumer Sector Update for 09/13/2023: AAL, CBRL, ZGN
|
AAL
|
https://www.nasdaq.com/articles/consumer-sector-update-for-09-13-2023%3A-aal-cbrl-zgn
|
nan
|
nan
|
Consumer stocks were higher Wednesday afternoon, with the Consumer Staples Select Sector SPDR Fund (XLP) increasing 0.3% and the Consumer Discretionary Select Sector SPDR Fund (XLY) rising 0.9%.
In company news, American Airlines (AAL) said it now expects Q3 adjusted earnings of $0.20 to $0.30 per share, down from its prior outlook of $0.85 to $0.95. Analysts polled by Capital IQ expect $0.66. The shares dropped past 5%.
Cracker Barrel Old Country Store (CBRL) said Wednesday that it recorded higher fiscal Q4 results from a year earlier, but sales fell short of market estimates amid "recent traffic challenges." Its shares were down 2.1%.
Ermenegildo Zegna (ZGN) reported H1 adjusted EPS of 0.20 euro ($0.21), up from 0.07 euro a year earlier. Revenue for the six months ended June 30 was 903.1 million euros, compared with 729 million euros a year earlier. Its shares were shedding 2.3%.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
In company news, American Airlines (AAL) said it now expects Q3 adjusted earnings of $0.20 to $0.30 per share, down from its prior outlook of $0.85 to $0.95. Consumer stocks were higher Wednesday afternoon, with the Consumer Staples Select Sector SPDR Fund (XLP) increasing 0.3% and the Consumer Discretionary Select Sector SPDR Fund (XLY) rising 0.9%. Cracker Barrel Old Country Store (CBRL) said Wednesday that it recorded higher fiscal Q4 results from a year earlier, but sales fell short of market estimates amid "recent traffic challenges."
|
In company news, American Airlines (AAL) said it now expects Q3 adjusted earnings of $0.20 to $0.30 per share, down from its prior outlook of $0.85 to $0.95. Consumer stocks were higher Wednesday afternoon, with the Consumer Staples Select Sector SPDR Fund (XLP) increasing 0.3% and the Consumer Discretionary Select Sector SPDR Fund (XLY) rising 0.9%. Ermenegildo Zegna (ZGN) reported H1 adjusted EPS of 0.20 euro ($0.21), up from 0.07 euro a year earlier.
|
In company news, American Airlines (AAL) said it now expects Q3 adjusted earnings of $0.20 to $0.30 per share, down from its prior outlook of $0.85 to $0.95. Consumer stocks were higher Wednesday afternoon, with the Consumer Staples Select Sector SPDR Fund (XLP) increasing 0.3% and the Consumer Discretionary Select Sector SPDR Fund (XLY) rising 0.9%. Its shares were down 2.1%.
|
In company news, American Airlines (AAL) said it now expects Q3 adjusted earnings of $0.20 to $0.30 per share, down from its prior outlook of $0.85 to $0.95. Consumer stocks were higher Wednesday afternoon, with the Consumer Staples Select Sector SPDR Fund (XLP) increasing 0.3% and the Consumer Discretionary Select Sector SPDR Fund (XLY) rising 0.9%. Analysts polled by Capital IQ expect $0.66.
|
2268.0
|
2023-09-13 00:00:00 UTC
|
Stocks Slightly Higher after Mixed U.S. CPI Report
|
AAL
|
https://www.nasdaq.com/articles/stocks-slightly-higher-after-mixed-u.s.-cpi-report
|
nan
|
nan
|
What you need to know…
The S&P 500 Index ($SPX) (SPY) today is up +0.23%, the Dow Jones Industrials Index ($DOWI) (DIA) is up +0.17%, and the Nasdaq 100 Index ($IUXX) (QQQ) is up +0.41%.
Stock indexes this morning are slightly higher. Stocks are posting modest gains today after a mixed U.S. consumer price report. U.S. consumer prices in August increased to +3.7% y/y from +3.2% y/y in July, stronger than expectations of +3.6% y/y. However, stocks found support after Aug core CPI eased to +4.3% y/y from +4.7% y/y in July, right on expectations and the smallest increase in almost two years.
Gains in U.S. stock index futures are limited by negative carryover from a slide in European stocks as the 10-year German bund yield jumped to a 3-week high after Reuters reported that the ECB's new economic estimates due to be released Thursday will show a Eurozone inflation forecast for 2024 above 3%, bolstering the case for the ECB to raise interest rates at Thursday’s policy meeting.
The markets are discounting the odds at 3% for a +25 bp rate hike at the September 20 FOMC meeting and 42% for that +25 bp rate hike at the November 1 FOMC meeting.
Global bond yields are mixed. The 10-year T-note yield fell from a 3-week high of 4.342% and is down -0.2 bp at 4.278%. The 10-year German bund yield rose to a 3-week high of 2.690% and is up +1.5 bp at 2.658%. The 10-year UK gilt yield fell to a 1-1/2 week low of 4.345% and is down -6.1 bp at 4.355%.
Overseas stock markets are lower. The Euro Stoxx 50 is down -0.40%. China’s Shanghai Composite Index closed -0.45%. Japan’s Nikkei Stock Index closed -0.21%.
Today’s stock movers…
Moderna (MRNA) is up more than +6% to lead gainers in the S&P 500 and Nasdaq 100 after it said a reformulated version of its messenger-RNA-based flu shot met its primary goals in a final-stage trial, paving the way for it to seek FDA approval for the vaccine.
Westrock (WRK) is up more than +2%, adding to Tuesday’s +2% gain after Smurfit Kappa Group Plc agreed to acquire the company in a $11.2 billion deal.
Ford Motor (F) is up more than +2% after UBS double-upgraded the stock to buy from sell with a price target of $15.
General Motors (GM) is up nearly +1% after UBS upgraded the stock to buy from neutral with a price target of $44.
Morgan Stanley (MS) is up more than +2%, adding to Tuesday’s +2% gain after investment manager Simkowitz said, “We are more confident now than any time this year about an improved outlook for 2024.”
Airline stocks are under pressure after American Airlines Group cut its guidance for Q3 adjusted EPS to 20-30 cents from a previous estimate of 85-95 cents, well below the consensus of 65 cents. As a result, American Airlines Group (AAL) is down more than -4% to lead losers in the S&P 500. Also, Delta Air Lines (DAL), United Airlines Holdings (UAL), and Southwest Airlines (LUV) are down more than -2%.
Regional bank stocks are retreating today on comments from Zions Bancorp CEO Simmons, who said they are seeing a slowdown in loan demand. As a result, Zions Bancorp (ZION) and U.S. Bancorp (USB) are down more than -4%. Also, Comerica (CMA) Truist Financial (TFC) are down more than -2%. In addition, M&T Bank (MTB), Citizens Financial Group (CFG), Regions Financial (RF), Huntington Bancshares (HBAN), and KeyCorp (KEY) are down more than -1%.
Applied Optoelectronics (AAOI) is down more than -19% after it terminated its agreement to sell manufacturing facilities in China to Yuhan Optoelectronic Technology.
Verizon Communications (VZ) is down more than -1% after Bloomberg Intelligence said T-Mobile may continue to gain market share from Verizon as it deploys the nationwide mid-band spectrum acquired from Sprint.
Apple (AAPL) is down nearly -1% after China flagged “security incidents” with Apple’s iPhones, the government’s first comments after news reports that it was restricting the use of Apple products in sensitive departments and state-owned companies.
Across the markets…
December 10-year T-notes (ZNZ23) today are up +2 ticks, and the 10-year T-note yield is down -0.2 bp at 4.278%. Dec T-note prices today recovered from a 3-week low and moved higher, and the 10-year T-note yield fell back from a 3-week high of 4.342% and moved lower. T-notes found support today after U.S. Aug core CPI eased to +4.3% y/y from +4.7% y/y in July, right on expectations and the slowest pace of increase in almost two years. T-notes initially fell today on negative carryover from a slump in 10-year German bunds to a 3-week low. Also, the stronger-than-expected U.S. Aug CPI was bearish for T-notes. In addition, supply pressures are weighing on T-notes as the Treasury will auction $20 billion of re-opened 30-year T-bonds later today as part of this week’s $99 billion package of T-note and T-bond auctions.
The dollar index (DXY00) today is down by -0.11%. The dollar today is posting modest losses. Strength in stocks today has curbed the liquidity demand for the dollar. Also, T-note yields today gave up an early advance and turned lower, weighing in the dollar.
EUR/USD (^EURUSD) is down by -0.09%. Weaker-than-expected Eurozone economic news today weighed on the euro after Eurozone Jul industrial production fell more than expected. Losses in the euro were limited after the odds for a 25 bp rate hike by the ECB on Thursday rose to 64% from 46% on Tuesday after Reuters reported the ECB’s inflation projections, to be released Thursday, will remain above 3% for 2024, bolstering the cast for more hawkish ECB policy.
Eurozone Jul industrial production fell -1.1% m/m, weaker than expectations of -0.9% m/m and the biggest decline in 4 months.
Reuters reported that the ECB's new economic estimates, due to be released Thursday, will show a Eurozone inflation forecast for 2024 above 3%.
USD/JPY (^USDJPY) is up +0.24%. The yen today is moderately lower. Central bank divergence is weighing on the yen, with the ECB and Federal Reserve currently raising interest rates while the BOJ maintains record-low interest rates.
Today’s Japanese economic news was mixed for the yen. On the negative side, Japan's Aug PPI eased to +3.2% y/y from +3.4% y/y in July, better than expectations of +3.3% y/y and dovish for BOJ policy. Conversely, the Q3 BSI large manufacturing business conditions rose +5.8 to 5.4, the highest since Q4 of 2021.
October gold (GCV3) today is down -0.1 (-0.01%), and Dec silver (SIZ23) is down -0.247 (-1.06%). Precious metals prices this morning are moderately lower, with gold falling to a 3-week low and silver dropping to a 3-1/2 week low. Increased expectations for a 25 bp rate hike by the ECB Thursday are undercutting precious metals as the odds for an ECB rate hike rose to 66% today from 46% Tuesday after Reuters reported the ECB’s new economic projections will show inflation remaining above 3% in 2024, bolstering the case for tighter ECB policy.
Also, the continued liquidation of gold holdings by funds is bearish for gold after long gold holdings in ETFs fell to a 3-1/3 year low Tuesday. A weaker dollar today is limiting losses in metals prices. Also, an increase in inflation expectations boosted demand for precious metals as an inflation hedge after the U.S. 10-year breakeven inflation rate climbed to a 4-week high today of 2.371%.
More Stock Market News from Barchart
Wall Street Analysts are Wrong About This Tech Stock, Here's Why
Will SoFi Technologies (SOFI) Pass Its IPO Underwriter Test? Here’s What Options Traders Say.
Markets Today: Stock Index Futures Slip as Mixed U.S. CPI Report Keeps Fed Rate Hikes in Play
3 Professional Services Companies Ready to Pop
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, American Airlines Group (AAL) is down more than -4% to lead losers in the S&P 500. Gains in U.S. stock index futures are limited by negative carryover from a slide in European stocks as the 10-year German bund yield jumped to a 3-week high after Reuters reported that the ECB's new economic estimates due to be released Thursday will show a Eurozone inflation forecast for 2024 above 3%, bolstering the case for the ECB to raise interest rates at Thursday’s policy meeting. Today’s stock movers… Moderna (MRNA) is up more than +6% to lead gainers in the S&P 500 and Nasdaq 100 after it said a reformulated version of its messenger-RNA-based flu shot met its primary goals in a final-stage trial, paving the way for it to seek FDA approval for the vaccine.
|
As a result, American Airlines Group (AAL) is down more than -4% to lead losers in the S&P 500. Gains in U.S. stock index futures are limited by negative carryover from a slide in European stocks as the 10-year German bund yield jumped to a 3-week high after Reuters reported that the ECB's new economic estimates due to be released Thursday will show a Eurozone inflation forecast for 2024 above 3%, bolstering the case for the ECB to raise interest rates at Thursday’s policy meeting. Losses in the euro were limited after the odds for a 25 bp rate hike by the ECB on Thursday rose to 64% from 46% on Tuesday after Reuters reported the ECB’s inflation projections, to be released Thursday, will remain above 3% for 2024, bolstering the cast for more hawkish ECB policy.
|
As a result, American Airlines Group (AAL) is down more than -4% to lead losers in the S&P 500. Gains in U.S. stock index futures are limited by negative carryover from a slide in European stocks as the 10-year German bund yield jumped to a 3-week high after Reuters reported that the ECB's new economic estimates due to be released Thursday will show a Eurozone inflation forecast for 2024 above 3%, bolstering the case for the ECB to raise interest rates at Thursday’s policy meeting. Losses in the euro were limited after the odds for a 25 bp rate hike by the ECB on Thursday rose to 64% from 46% on Tuesday after Reuters reported the ECB’s inflation projections, to be released Thursday, will remain above 3% for 2024, bolstering the cast for more hawkish ECB policy.
|
As a result, American Airlines Group (AAL) is down more than -4% to lead losers in the S&P 500. Stocks are posting modest gains today after a mixed U.S. consumer price report. The 10-year German bund yield rose to a 3-week high of 2.690% and is up +1.5 bp at 2.658%.
|
2269.0
|
2023-09-13 00:00:00 UTC
|
The 3 Most Undervalued Airline Stocks to Buy in September 2023
|
AAL
|
https://www.nasdaq.com/articles/the-3-most-undervalued-airline-stocks-to-buy-in-september-2023
|
nan
|
nan
|
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Airline stocks normally don’t move around too much, but they have been quite volatile since the Covid-19 pandemic. Lockdowns decimated the industry, but travel has been recovering. The removal of lockdown restrictions created a “revenge travel” phenomenon that has been going strong for two years.
Changes in consumer sentiment can create buying opportunities for investors. Airline stocks have benefitted from the resurgence in travel, and yet most airline stocks are still below their pre-pandemic levels. It’s easy to find airline stocks that are still 20%-50% below their pre-pandemic price points.
Investors looking to diversify their portfolios and buy airline stocks may want to consider these promising opportunities.
Delta Airlines (DAL)
Source: EQRoy / Shutterstock.com
Delta Airlines (NYSE:DAL) has gained 25% year-to-date (YTD) and has a 9 price-to-earnings (P/E) ratio. The company paid steady dividends before the pandemic and recently returned to giving dividends. Delta reinstated its quarterly dividend in July at $0.10 per share. Delta has previously given a $0.4025 quarterly dividend to its investors. Continued demand for the travel industry can help the corporation get back to its pre-pandemic dividend payments.
The company generated record-breaking revenue in the second quarter. The company’s $15.6 billion in revenue represents a 12.7% year-over-year (YOY) increase. The company also expects to deliver record revenue in the third quarter and achieve an EPS of $2.20-$2.50.
Delta can deliver 11%-14% YOY revenue growth if its guidance holds. Delta also raised its EPS guidance to $6-$7. The company remains committed to $3 billion in free cash flow.
Delta has put some of its money to use to trim its debt. The airline company reduced its debt by $2.5 billion from the end of 2022 to Q2 2023.
United Airlines (UAL)
Source: NextNewMedia / Shutterstock.com
United Airlines (NYSE:UAL) shares have gained 27% YTD. The company recently achieved record-breaking revenue performance, but shares are still almost 50% down from their pre-pandemic levels.
United Airlines grew its revenue by 17.1% YOY. Net income eclipsed $1 billion. The airline averaged over 2,400 daily flights which is a record for the company. United Airlines has not maintained that many daily flights in any quarter.
The stock’s valuation looks enticing at current levels. Shares trade at a forward P/E ratio below 4 and at a 0.10 PEG ratio. United Airlines has also been making progress with its debt, including a $1 billion prepayment for high-coupon debt.
United Airlines raised its full-year 2023 adjusted EPS guidance to $11-$12. The resurgence in travel and a strengthening balance sheet suggest United Airlines can reward long-term investors.
As the company makes more progress with its balance sheet, it can return to pre-pandemic prices. United Airlines is already doing a fine job with revenue and earnings. As long as the travel boom continues, United Airlines can continue generating profits for investors.
American Airlines (AAL)
Source: GagliardiPhotography / Shutterstock.com
American Airlines (NYSE:AAL) shares have gained 10% YTD and come with a forward P/E ratio of 4. The stock’s PEG ratio is below 0.10. These valuation metrics look promising for a company that reported 4.7% YOY revenue growth in the second quarter.
That figure isn’t as impressive as the other airline stocks, and it’s not the best number for growth stocks either. However, American Airlines finds itself cheaply valued. Net income came to $1.4 billion, or $1.92 per diluted share.
Like other airline companies, American Airlines decided to raise its guidance. The corporation now calls for EPS ranging from $3.00-$3.75. American Airlines has also been making progress with its balance sheet. That effort resulted in a rating increase by Fitch. The firm raised American Airlines’ credit rating by two notches, up to a B+ rating.
American Airlines ended the quarter with $14.9 billion in available liquidity, giving them additional flexibility to cover financial obligations. American Airlines stock can deliver gains as airline stocks continue to climb closer to their pre-pandemic price levels.
On the date of publication, Marc Guberti 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.
Marc Guberti is a finance freelance writer at InvestorPlace.com who hosts the Breakthrough Success Podcast. He has contributed to several publications, including the U.S. News & World Report, Benzinga, and Joy Wallet.
More From InvestorPlace
Musk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In.
ChatGPT IPO Could Shock the World, Make This Move Before the Announcement
It doesn’t matter if you have $500 or $5 million. Do this now.
The post The 3 Most Undervalued Airline Stocks to Buy in September 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.
|
American Airlines (AAL) Source: GagliardiPhotography / Shutterstock.com American Airlines (NYSE:AAL) shares have gained 10% YTD and come with a forward P/E ratio of 4. The resurgence in travel and a strengthening balance sheet suggest United Airlines can reward long-term investors. American Airlines ended the quarter with $14.9 billion in available liquidity, giving them additional flexibility to cover financial obligations.
|
American Airlines (AAL) Source: GagliardiPhotography / Shutterstock.com American Airlines (NYSE:AAL) shares have gained 10% YTD and come with a forward P/E ratio of 4. Delta Airlines (DAL) Source: EQRoy / Shutterstock.com Delta Airlines (NYSE:DAL) has gained 25% year-to-date (YTD) and has a 9 price-to-earnings (P/E) ratio. United Airlines (UAL) Source: NextNewMedia / Shutterstock.com United Airlines (NYSE:UAL) shares have gained 27% YTD.
|
American Airlines (AAL) Source: GagliardiPhotography / Shutterstock.com American Airlines (NYSE:AAL) shares have gained 10% YTD and come with a forward P/E ratio of 4. Airline stocks have benefitted from the resurgence in travel, and yet most airline stocks are still below their pre-pandemic levels. Like other airline companies, American Airlines decided to raise its guidance.
|
American Airlines (AAL) Source: GagliardiPhotography / Shutterstock.com American Airlines (NYSE:AAL) shares have gained 10% YTD and come with a forward P/E ratio of 4. Delta has previously given a $0.4025 quarterly dividend to its investors. The airline company reduced its debt by $2.5 billion from the end of 2022 to Q2 2023.
|
2270.0
|
2023-09-13 00:00:00 UTC
|
S&P 500 Movers: AAL, MRNA
|
AAL
|
https://www.nasdaq.com/articles/sp-500-movers%3A-aal-mrna
|
nan
|
nan
|
In early trading on Wednesday, shares of Moderna topped the list of the day's best performing components of the S&P 500 index, trading up 6.1%. Year to date, Moderna has lost about 37.9% of its value.
And the worst performing S&P 500 component thus far on the day is American Airlines Group, trading down 4.7%. American Airlines Group is showing a gain of 5.7% looking at the year to date performance.
Two other components making moves today are Zions Bancorporation, trading down 3.9%, and Centene, trading up 2.8% on the day.
VIDEO: S&P 500 Movers: AAL, MRNA
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
VIDEO: S&P 500 Movers: AAL, MRNA The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. And the worst performing S&P 500 component thus far on the day is American Airlines Group, trading down 4.7%. American Airlines Group is showing a gain of 5.7% looking at the year to date performance.
|
VIDEO: S&P 500 Movers: AAL, MRNA The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In early trading on Wednesday, shares of Moderna topped the list of the day's best performing components of the S&P 500 index, trading up 6.1%. And the worst performing S&P 500 component thus far on the day is American Airlines Group, trading down 4.7%.
|
VIDEO: S&P 500 Movers: AAL, MRNA The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In early trading on Wednesday, shares of Moderna topped the list of the day's best performing components of the S&P 500 index, trading up 6.1%. And the worst performing S&P 500 component thus far on the day is American Airlines Group, trading down 4.7%.
|
VIDEO: S&P 500 Movers: AAL, MRNA The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. And the worst performing S&P 500 component thus far on the day is American Airlines Group, trading down 4.7%. American Airlines Group is showing a gain of 5.7% looking at the year to date performance.
|
2271.0
|
2023-09-13 00:00:00 UTC
|
Markets Today: Stock Index Futures Slip as Mixed U.S. CPI Report Keeps Fed Rate Hikes in Play
|
AAL
|
https://www.nasdaq.com/articles/markets-today%3A-stock-index-futures-slip-as-mixed-u.s.-cpi-report-keeps-fed-rate-hikes-in
|
nan
|
nan
|
Morning Markets
September E-Mini S&P 500 futures (ESU23) this morning are down -0.06%, and Sep Nasdaq 100 E-Mini futures (NQU23) are down -0.14%.
Stock index futures this morning are moderately lower on a mixed U.S. CPI report. U.S. consumer prices in August increased to +3.7% y/y from +3.2% y/y in July, stronger than expectations of +3.6% y/y, which pushed the 10-year T-note yield up to a 3-week high of 4.342% and bolsters the case for the Fed to keep interest rates higher for longer. However, stock losses were contained after Aug core CPI eased to +4.3% y/y from +4.7% y/y in July, right on expectations and the slowest pace of increase in almost two years.
U.S. stock index futures are also under pressure on negative carryover from a slide in European stocks as the 10-year German bund yield jumped to a 3-week high after Reuters reported that the ECB's new economic estimates due to be released Thursday will show a Eurozone inflation forecast for 2024 above 3%, bolstering the case for the ECB to raise interest rates at Thursday’s policy meeting.
The markets are discounting the odds at 5% for a +25 bp rate hike at the September 20 FOMC meeting and 43% for that +25 bp rate hike at the November 1 FOMC meeting.
Global bond yields are mixed. The 10-year T-note yield climbed to a 3-week high of 4.342% and is up +1.6 bp at 4.296%. The 10-year German bund yield rose to a 3-week high of 2.690% and is up +2.5 bp at 2.668%. The 10-year UK gilt yield fell to a 1-1/2 week low of 4.380% and is down -3.5 bp at 4.381%.
Overseas stock markets are lower. The Euro Stoxx 50 is down -0.60%. China’s Shanghai Composite Index closed -0.45%. Japan’s Nikkei Stock Index closed -0.21%.
The Euro Stoxx 50 today is moderately lower. European stocks are under pressure today on a report from Reuters that said the ECB expects inflation in the Eurozone to remain above 3% next year. That pushed European government bonds higher, with the 10-year German bund yield climbing to a 3-week high of 2.690%. The report also boosted market expectations for a 25 bp rate hike by the ECB at Thursday’s meeting to 64% from 42% on Tuesday.
Weaker-than-expected Eurozone industrial production news also weighed on European stocks. A brief rally in European carmakers lifted the overall market from its worst levels after the European Union said it was launching an investigation into Chinese subsidies for electric vehicles. However, carmakers gave up their gains and turned lower on concerns about a backlash from Chinese authorities.
Reuters reported that the ECB's new economic estimates, due to be released Thursday, will show a Eurozone inflation forecast for 2024 above 3%.
Eurozone Jul industrial production fell -1.1% m/m, weaker than expectations of -0.9% m/m and the biggest decline in 4 months.
China’s Shanghai Composite Index posted moderate losses. Weakness in Chinese suppliers to Apple declined today after the Chinese government flagged “security incidents” with Apple’s iPhones, the government’s first comments on the topic after reports that authorities were moving to restrict the use of Apple products in sensitive departments and state-owned companies. Also, Chinese electric vehicle makers sold off after the European Union said it was launching an investigation into Chinese subsidies for electric vehicles.
On the positive side, Chinese travel stocks and tourism-related companies rallied after Thailand said it would waive visa requirements for travelers from China. Before the pandemic, Chinese tourists accounted for over 30% of Thailand’s 40 million tourist arrivals in 2019. Also, property stocks gained as market sentiment improved on reports that developer Country Gardens received a yuan bond extension.
Japan’s Nikkei Stock Index closed slightly lower. Weakness in Japanese technology stocks led the overall market lower, following the -1% fall in the Nasdaq 100 Stock Index on Tuesday. Also, Japanese suppliers of Boeing fell after Boeing deliveries dropped for a second month after it reported deliveries of 737 Max jets were delayed due to a manufacturing defect where improperly drilled holes were found in a key component that helps control cabin pressure. Japanese stocks recovered from their worst levels on better-than-expected economic reports on August producer prices and Q3 BSI large manufacturing business conditions. Also, Japanese tire companies gained after Citigroup took a bullish stance on the sector due to an improving demand outlook and benefits from the shift to electric vehicles.
Japan Aug PPI eased to +3.2% y/y from +3.4% y/y in July, better than expectations of +3.3% y/y.
The Japan Q3 BSI large manufacturing business conditions rose +5.8 to 5.4, the highest since Q4 of 2021.
Pre-Market U.S. Stock Movers
Apple (AAPL) slid nearly -1% in pre-market trading after China flagged “security incidents” with Apple’s iPhones, the government’s first comments after news reports that it was restricting the use of Apple products in sensitive departments and state-owned companies.
Airline stocks are under pressure after American Airlines Group cut its guidance for Q3 adjusted EPS to 20-30 cents from a previous estimate of 85-95 cents, well below the consensus of 65 cents. As a result, American Airlines Group (AAL) is down more than -2%. Also, Delta Air Lines (DAL), United Airlines Holdings (UAL), and Southwest Airlines (LUV) are down more than -1%.
Applied Optoelectronics (AAOI) tumbled more than -12% in pre-market trading after it terminated its agreement to sell manufacturing facilities in China to Yuhan Optoelectronic Technology.
Unity Software (U) lost almost -1% in pre-market trading after Oppenheimer noted negative publicity from the news that the company announced a new pricing structure for its game engine.
Ford Motor (F) rose more than +2% in pre-market trading after UBS double-upgraded the stock to buy from sell with a price target of $15.
General Motors (GM) gained nearly +1% in pre-market trading after UBS upgraded the stock to buy from neutral with a price target of $44.
Moderna (MRNA) climbed more than +3% in pre-market trading after it said a reformulated version of its messenger-RNA-based flu shot met its primary goals in a final-stage trial, paving the way for it to seek FDA approval for the vaccine.
Match Group (MTCH) rose more than +2% in pre-market trading after JPMorgan Chase said the stock is now a top pick, and investors are “too pessimistic” about the company.
Earnings Reports (9/13/2023)
Cracker Barrel Old Country Store (CBRL), DZS Inc (DZSI), EVI Industries Inc (EVI), IBEX Holdings Ltd (IBEX), Presto Automation Inc (PRST), Radiant Logistics Inc (RLGT), REV Group Inc (REVG), Selectquote Inc (SLQT), Semtech Corp (SMTC), Vitesse Energy Inc (VTS).
More Stock Market News from Barchart
3 Professional Services Companies Ready to Pop
2 Bearish Option Ideas To Consider This Wednesday
Stocks Tread Water Before the Open as U.S. Inflation Data Looms
Stocks Retreat as Tech Stocks Fall on Weakness in Oracle and Apple
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, American Airlines Group (AAL) is down more than -2%. U.S. consumer prices in August increased to +3.7% y/y from +3.2% y/y in July, stronger than expectations of +3.6% y/y, which pushed the 10-year T-note yield up to a 3-week high of 4.342% and bolsters the case for the Fed to keep interest rates higher for longer. Also, Japanese tire companies gained after Citigroup took a bullish stance on the sector due to an improving demand outlook and benefits from the shift to electric vehicles.
|
As a result, American Airlines Group (AAL) is down more than -2%. U.S. stock index futures are also under pressure on negative carryover from a slide in European stocks as the 10-year German bund yield jumped to a 3-week high after Reuters reported that the ECB's new economic estimates due to be released Thursday will show a Eurozone inflation forecast for 2024 above 3%, bolstering the case for the ECB to raise interest rates at Thursday’s policy meeting. Weakness in Chinese suppliers to Apple declined today after the Chinese government flagged “security incidents” with Apple’s iPhones, the government’s first comments on the topic after reports that authorities were moving to restrict the use of Apple products in sensitive departments and state-owned companies.
|
As a result, American Airlines Group (AAL) is down more than -2%. U.S. stock index futures are also under pressure on negative carryover from a slide in European stocks as the 10-year German bund yield jumped to a 3-week high after Reuters reported that the ECB's new economic estimates due to be released Thursday will show a Eurozone inflation forecast for 2024 above 3%, bolstering the case for the ECB to raise interest rates at Thursday’s policy meeting. Pre-Market U.S. Stock Movers Apple (AAPL) slid nearly -1% in pre-market trading after China flagged “security incidents” with Apple’s iPhones, the government’s first comments after news reports that it was restricting the use of Apple products in sensitive departments and state-owned companies.
|
As a result, American Airlines Group (AAL) is down more than -2%. Stock index futures this morning are moderately lower on a mixed U.S. CPI report. The 10-year German bund yield rose to a 3-week high of 2.690% and is up +2.5 bp at 2.668%.
|
2272.0
|
2023-09-13 00:00:00 UTC
|
US carriers cut margin outlook on fuel costs, Frontier flags lower bookings
|
AAL
|
https://www.nasdaq.com/articles/us-carriers-cut-margin-outlook-on-fuel-costs-frontier-flags-lower-bookings
|
nan
|
nan
|
Adds details on forecast by other airlines and background in paragraphs 5-8
Sept 13 (Reuters) - Three U.S. carriers on Wednesday cut their third-quarter margin forecasts on higher fuel costs, sending shares of other airlines in the country lower in premarket trading on concerns over rising expenses.
American Airlines AAL.O, Spirit Airlines SAVE.N and Frontier Group Holdings ULCC.Ofollowed peers in flagging a hit from jet fuel prices, which have risen since July.
Low-cost carrier Frontier also warned of a "recent significant unexpected change in the booking trajectory," adding it experienced a greater volume of "recent operational cancellations" than previously forecast.
"In recent weeks, sales have been trending below historical seasonality patterns," Frontier said in a regulatory filing. The company's shares fell 4.5% in premarket trading.
The forecast comes against the backdrop of early signs of domestic travel demand weakening, with inflationary pressures hurting consumers and airlines handing out costly contracts to retain workers.
American Airlines said it expects a profit of 20 to 30 cents per share in the current quarter, down from its prior forecast of 85 to 95 cents per share, sending its shares down 3%.
The airline also tightened its forecast for total revenue per available seat mile, a proxy for pricing power. It is now expected to fall 5.5% to 6.5%, compared with its earlier forecast of a 4.5% to 6.5% fall.
Spirit Airlines now expects its adjusted operating margins to fall between 14.5% and 15.5%, larger than earlier estimates of a fall of 5.5% to 7.5%, as the company offered discounts to woo travelers.
Florida based-Spirit forecast third-quarter revenue between $1.24 billion and $1.25 billion, against its previous estimate of $1.3 billion to $1.32 billion. Its shares fell 4.6%.
Stocks of larger U.S. carriers such as Delta Air Lines DAL.N, Southwest Airlines LUV.N and United Airlines UAL.O also fell about 2% each.
(Reporting by Pratyush Thakur in Bengaluru; Editing by Mrigank Dhaniwala and Shounak Dasgupta)
((pratyush.thakur@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 Airlines AAL.O, Spirit Airlines SAVE.N and Frontier Group Holdings ULCC.Ofollowed peers in flagging a hit from jet fuel prices, which have risen since July. Adds details on forecast by other airlines and background in paragraphs 5-8 Sept 13 (Reuters) - Three U.S. carriers on Wednesday cut their third-quarter margin forecasts on higher fuel costs, sending shares of other airlines in the country lower in premarket trading on concerns over rising expenses. The forecast comes against the backdrop of early signs of domestic travel demand weakening, with inflationary pressures hurting consumers and airlines handing out costly contracts to retain workers.
|
American Airlines AAL.O, Spirit Airlines SAVE.N and Frontier Group Holdings ULCC.Ofollowed peers in flagging a hit from jet fuel prices, which have risen since July. Adds details on forecast by other airlines and background in paragraphs 5-8 Sept 13 (Reuters) - Three U.S. carriers on Wednesday cut their third-quarter margin forecasts on higher fuel costs, sending shares of other airlines in the country lower in premarket trading on concerns over rising expenses. Spirit Airlines now expects its adjusted operating margins to fall between 14.5% and 15.5%, larger than earlier estimates of a fall of 5.5% to 7.5%, as the company offered discounts to woo travelers.
|
American Airlines AAL.O, Spirit Airlines SAVE.N and Frontier Group Holdings ULCC.Ofollowed peers in flagging a hit from jet fuel prices, which have risen since July. Adds details on forecast by other airlines and background in paragraphs 5-8 Sept 13 (Reuters) - Three U.S. carriers on Wednesday cut their third-quarter margin forecasts on higher fuel costs, sending shares of other airlines in the country lower in premarket trading on concerns over rising expenses. American Airlines said it expects a profit of 20 to 30 cents per share in the current quarter, down from its prior forecast of 85 to 95 cents per share, sending its shares down 3%.
|
American Airlines AAL.O, Spirit Airlines SAVE.N and Frontier Group Holdings ULCC.Ofollowed peers in flagging a hit from jet fuel prices, which have risen since July. The company's shares fell 4.5% in premarket trading. Spirit Airlines now expects its adjusted operating margins to fall between 14.5% and 15.5%, larger than earlier estimates of a fall of 5.5% to 7.5%, as the company offered discounts to woo travelers.
|
2273.0
|
2023-09-13 00:00:00 UTC
|
ANALYSIS-Peru clings to copper No. 2 spot but investment pipeline stalls
|
AAL
|
https://www.nasdaq.com/articles/analysis-peru-clings-to-copper-no.-2-spot-but-investment-pipeline-stalls
|
nan
|
nan
|
By Marco Aquino
LIMA, Sept 13 (Reuters) - Peru is clinging to its spot as the world's No. 2 copper producer and supplier, with a bounce in mining activity helping the Andean country stay just ahead this year of rival producer Democratic Republic of Congo (DRC), which is hot on its heels.
Peru produced 2.45 million metric tons of copper in 2022. DRC copper output meanwhile -- just behind Peru at 2.40 million metric tons last year -- climbed 3% in the first quarter, the latest central bank data show, keeping it a close third place. Chile remains by far the top global producer and exporter.
In the first quarter Peru's output was 619,000 tons versus DRC's 564,772. Peru is just ahead of Congo also on shipments with 1.4 million tons versus 1.3 million in the first half of the year, separate data from both mining ministries show.
"We are suffering from the absence of world-class projects," said Gonzalo Tamayo, former Peruvian mining minister in 2016-2017, and now a partner at consultancy Macroconsult, adding most investment was medium-sized projects or expansions. "We have not been able to attract new large investments."
Peru's Andes are home to major mining firms including Freeport-McMoRan FCX.N, MMG Ltd 1208.HK, BHP BHP.AX, Glencore GLEN.L, Teck Resources TECKb.TO, Japan's Mitsubishi 8058.T, and Southern Copper of Grupo México GMEXICOB.MX.
Key to increased production has been Anglo American's AAL.L $5.5 billion Quellaveco mine, producing a monthly 30,000 tons of the metal, which started operations late last year.
However, Peru faces a looming issue of a lack of new major projects from its $53 billion mining investment pipeline, which will put additional pressure on existing deposits.
Ivan Merino, former mining minister in the government of ousted former President Pedro Castillo in 2021, said the lack of "predictability" in Peru and regular protests was scaring away or delaying investment.
"If you do not have social stability, the viability of projects is going to be difficult. Not impossible, but difficult," he said.
Newmont Mining Corp NEM.N announced in June that it would postpone a decision to invest some $2.5 billion until 2026.
At the end of July, Peru's government did approve the expansion of the $1.3 billion Toromocho mine of China's Chinalco and expects to approve a $2 billion expansion plan for the Antamina mine at the end of the year.
Tamayo added though that Peru needed to take action to spur new investment - or risk being overtaken by rival producers.
"If Peru doesn't get going, if it doesn't ride this wave, then someone else will," he said.
Peru: Copper Recovery https://tmsnrt.rs/487ZIhP
Peru: Copper Recovery (Interactive) https://tmsnrt.rs/3sOsQui
Peru: Mining Investment (Interactive) https://tmsnrt.rs/3PAINx6
Peru: Mining Investment https://tmsnrt.rs/48eqx3O
Peru: copper producer No. 2, for now! https://tmsnrt.rs/3RhwFlS
Peru: copper producer No. 2, for now! (Interactive) https://tmsnrt.rs/44LABOV
(Reporting by Marco Aquino and Felix Njini; Editing by Adam Jourdan and Andrea Ricci)
((adam.jourdan@thomsonreuters.com; +54 1155446882; Reuters Messaging: adam.jourdan.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.
|
Key to increased production has been Anglo American's AAL.L $5.5 billion Quellaveco mine, producing a monthly 30,000 tons of the metal, which started operations late last year. DRC copper output meanwhile -- just behind Peru at 2.40 million metric tons last year -- climbed 3% in the first quarter, the latest central bank data show, keeping it a close third place. Peru's Andes are home to major mining firms including Freeport-McMoRan FCX.N, MMG Ltd 1208.HK, BHP BHP.AX, Glencore GLEN.L, Teck Resources TECKb.TO, Japan's Mitsubishi 8058.T, and Southern Copper of Grupo México GMEXICOB.MX.
|
Key to increased production has been Anglo American's AAL.L $5.5 billion Quellaveco mine, producing a monthly 30,000 tons of the metal, which started operations late last year. Peru produced 2.45 million metric tons of copper in 2022. In the first quarter Peru's output was 619,000 tons versus DRC's 564,772.
|
Key to increased production has been Anglo American's AAL.L $5.5 billion Quellaveco mine, producing a monthly 30,000 tons of the metal, which started operations late last year. However, Peru faces a looming issue of a lack of new major projects from its $53 billion mining investment pipeline, which will put additional pressure on existing deposits. At the end of July, Peru's government did approve the expansion of the $1.3 billion Toromocho mine of China's Chinalco and expects to approve a $2 billion expansion plan for the Antamina mine at the end of the year.
|
Key to increased production has been Anglo American's AAL.L $5.5 billion Quellaveco mine, producing a monthly 30,000 tons of the metal, which started operations late last year. Peru produced 2.45 million metric tons of copper in 2022. "We are suffering from the absence of world-class projects," said Gonzalo Tamayo, former Peruvian mining minister in 2016-2017, and now a partner at consultancy Macroconsult, adding most investment was medium-sized projects or expansions.
|
2274.0
|
2023-09-12 00:00:00 UTC
|
Airlines say US must boost air traffic control staffing
|
AAL
|
https://www.nasdaq.com/articles/airlines-say-us-must-boost-air-traffic-control-staffing
|
nan
|
nan
|
By David Shepardson
WASHINGTON, Sept 12 (Reuters) - U.S. airlines on Tuesday expressed growing frustration with Federal Aviation Administration air traffic control staffing (ATC) shortages, which have snarled flights and forced regulators to extend waivers on minimum flight requirements.
"In the short to medium term we have to reduce flights in very impacted airports because the system can't cope with the number of flights today," JetBlue Airways JBLU.O CEO Robin Hayes told Reuters on the sidelines of an industry conference Tuesday. "We're selling flights that we know we won't be able to operate because of ATC challenges."
Airlines have faced flight woes after a record-setting U.s. summer travel season and voluntary cut flights because of air traffic shortages. They want to add more flights to address demand.
United Airlines UAL.O CEO Scott Kirby, who harshly criticized the FAA this summer, said at the conference that lagging air traffic staffing levels "was two decades in building and it is going to take years to get it addressed."
The FAA declined to comment Tuesday beyond a statement it issued in August that said it met its goal of hiring 1,500 controllers in the year ending Sept. 30. But it is still about 3,000 controllers behind staffing targets.
Hayes said if the FAA doubled controller hiring - which it cannot - "it would still take us five years to catch up."
The FAA has about 2,600 controllers in training. The Transportation Department is seeking $117 million to hire another 1,800 next year.
Citing ATC staffing issues, the FAA in August extended temporary cuts to minimum flight requirements at congested New York City-area airports and Washington National Airport through Oct. 28.
A government watchdog said in June that critical ATC facilities face significant staffing challenges, posing risks to air traffic operations.
The United States has experienced several near-miss aviation incidents this year, including some that could have been catastrophic involving apparent controller mistakes.
The FAA has 10,700 certified controllers, up slightly from 10,578 in 2022, virtually the same as 2021 and down 10% from 2012. Of the FAA's 13,300 controllers, 26% are trainees.
At several facilities, controllers are working mandatory overtime and six-day work weeks to cover shortages.
Last summer, 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 54%, the report said.
(Reporting by David Shepardson. Editing by Gerry Doyle)
((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.
|
United Airlines UAL.O CEO Scott Kirby, who harshly criticized the FAA this summer, said at the conference that lagging air traffic staffing levels "was two decades in building and it is going to take years to get it addressed." A government watchdog said in June that critical ATC facilities face significant staffing challenges, posing risks to air traffic operations. The United States has experienced several near-miss aviation incidents this year, including some that could have been catastrophic involving apparent controller mistakes.
|
By David Shepardson WASHINGTON, Sept 12 (Reuters) - U.S. airlines on Tuesday expressed growing frustration with Federal Aviation Administration air traffic control staffing (ATC) shortages, which have snarled flights and forced regulators to extend waivers on minimum flight requirements. Citing ATC staffing issues, the FAA in August extended temporary cuts to minimum flight requirements at congested New York City-area airports and Washington National Airport through Oct. 28. A government watchdog said in June that critical ATC facilities face significant staffing challenges, posing risks to air traffic operations.
|
By David Shepardson WASHINGTON, Sept 12 (Reuters) - U.S. airlines on Tuesday expressed growing frustration with Federal Aviation Administration air traffic control staffing (ATC) shortages, which have snarled flights and forced regulators to extend waivers on minimum flight requirements. United Airlines UAL.O CEO Scott Kirby, who harshly criticized the FAA this summer, said at the conference that lagging air traffic staffing levels "was two decades in building and it is going to take years to get it addressed." Citing ATC staffing issues, the FAA in August extended temporary cuts to minimum flight requirements at congested New York City-area airports and Washington National Airport through Oct. 28.
|
Airlines have faced flight woes after a record-setting U.s. summer travel season and voluntary cut flights because of air traffic shortages. Hayes said if the FAA doubled controller hiring - which it cannot - "it would still take us five years to catch up." New York Terminal Radar Approach Control staffing was at 54%, the report said.
|
2275.0
|
2023-09-11 00:00:00 UTC
|
Monday's ETF with Unusual Volume: RSPN
|
AAL
|
https://www.nasdaq.com/articles/mondays-etf-with-unusual-volume%3A-rspn
|
nan
|
nan
|
The Invesco S&P 500— Equal Weight Industrials ETF is seeing unusually high volume in afternoon trading Monday, with over 532,000 shares traded versus three month average volume of about 65,000. Shares of RSPN were up about 0.2% on the day.
Components of that ETF with the highest volume on Monday were RTX, trading off about 7.8% with over 16.8 million shares changing hands so far this session, and American Airlines Group, up about 1.1% on volume of over 13.5 million shares. Alaska Air Group is the component faring the best Monday, up by about 1.8% on the day.
VIDEO: Monday's ETF with Unusual Volume: RSPN
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
The Invesco S&P 500— Equal Weight Industrials ETF is seeing unusually high volume in afternoon trading Monday, with over 532,000 shares traded versus three month average volume of about 65,000. Components of that ETF with the highest volume on Monday were RTX, trading off about 7.8% with over 16.8 million shares changing hands so far this session, and American Airlines Group, up about 1.1% on volume of over 13.5 million shares. Alaska Air Group is the component faring the best Monday, up by about 1.8% on the day.
|
The Invesco S&P 500— Equal Weight Industrials ETF is seeing unusually high volume in afternoon trading Monday, with over 532,000 shares traded versus three month average volume of about 65,000. Components of that ETF with the highest volume on Monday were RTX, trading off about 7.8% with over 16.8 million shares changing hands so far this session, and American Airlines Group, up about 1.1% on volume of over 13.5 million shares. VIDEO: Monday's ETF with Unusual Volume: RSPN The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
The Invesco S&P 500— Equal Weight Industrials ETF is seeing unusually high volume in afternoon trading Monday, with over 532,000 shares traded versus three month average volume of about 65,000. Components of that ETF with the highest volume on Monday were RTX, trading off about 7.8% with over 16.8 million shares changing hands so far this session, and American Airlines Group, up about 1.1% on volume of over 13.5 million shares. VIDEO: Monday's ETF with Unusual Volume: RSPN The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
The Invesco S&P 500— Equal Weight Industrials ETF is seeing unusually high volume in afternoon trading Monday, with over 532,000 shares traded versus three month average volume of about 65,000. Shares of RSPN were up about 0.2% on the day. Components of that ETF with the highest volume on Monday were RTX, trading off about 7.8% with over 16.8 million shares changing hands so far this session, and American Airlines Group, up about 1.1% on volume of over 13.5 million shares.
|
2276.0
|
2023-09-11 00:00:00 UTC
|
HB Antwerp co-founders clash over gem trader's future as Botswana deal looms
|
AAL
|
https://www.nasdaq.com/articles/hb-antwerp-co-founders-clash-over-gem-traders-future-as-botswana-deal-looms
|
nan
|
nan
|
LONDON, Sept 11 (Reuters) - Diamond processor and trader HB Antwerp said on Monday it had removed one of its three co-founders from management following differences over strategy, a development that comes amid a pending sales pact with major producer Botswana.
Oded Mansori, who co-founded HB Antwerp in 2020 with partners Shai de Toledo and Rafael Papismedov, said he was taking them to court over his removal.
"On September 1, HB terminated Mr Oded Mansori's management role in all the HB Companies," the Belgian company said in a statement, citing a "sharp difference in strategic vision and approaches to business".
The government of Botswana, the world's No. 1 diamond producer by value, said in March that it had agreed to buy a 24% stake in HB Antwerp. As part of the deal, state-owned Okavango Diamond Company would supply HB with an undisclosed quantity of rough diamonds for five years.
The deal is yet to be signed.
Mansori, a long-time diamond dealer, said in a separate statement that he was "determined to defend his vision and to fight for the wellbeing and the future of HB," and that "a legal process is currently underway in court."
Mansori, who declined to comment further, said he was still a shareholder in the company.
HB also has a partnership with Lucara Diamond Corp LUC.TO, buying stones of 10 carat quality and above from the Toronto-listed miner's Karowe Mine in central Botswana at prices based on the estimated polished outcome of each diamond.
Lucara did not immediately respond to a request for comment on whether the legal tussle could impact its own deal with HB Antwerp.
In 2022, HB Antwerp partnered with Microsoft to track mined gems via blockchain, as consumers focus on clearing the supply chain of fraudsters and diamonds mined in war zones and sold to fund insurgencies.
Other diamond miners, including Anglo American's AAL.L unit De Beers, also use blockchain platforms to trace their diamonds and verify authenticity.
(Reporting by Clara Denina and Felix Njini; Editing by Susan Fenton)
((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.
|
Other diamond miners, including Anglo American's AAL.L unit De Beers, also use blockchain platforms to trace their diamonds and verify authenticity. LONDON, Sept 11 (Reuters) - Diamond processor and trader HB Antwerp said on Monday it had removed one of its three co-founders from management following differences over strategy, a development that comes amid a pending sales pact with major producer Botswana. Oded Mansori, who co-founded HB Antwerp in 2020 with partners Shai de Toledo and Rafael Papismedov, said he was taking them to court over his removal.
|
Other diamond miners, including Anglo American's AAL.L unit De Beers, also use blockchain platforms to trace their diamonds and verify authenticity. Oded Mansori, who co-founded HB Antwerp in 2020 with partners Shai de Toledo and Rafael Papismedov, said he was taking them to court over his removal. As part of the deal, state-owned Okavango Diamond Company would supply HB with an undisclosed quantity of rough diamonds for five years.
|
Other diamond miners, including Anglo American's AAL.L unit De Beers, also use blockchain platforms to trace their diamonds and verify authenticity. "On September 1, HB terminated Mr Oded Mansori's management role in all the HB Companies," the Belgian company said in a statement, citing a "sharp difference in strategic vision and approaches to business". As part of the deal, state-owned Okavango Diamond Company would supply HB with an undisclosed quantity of rough diamonds for five years.
|
Other diamond miners, including Anglo American's AAL.L unit De Beers, also use blockchain platforms to trace their diamonds and verify authenticity. LONDON, Sept 11 (Reuters) - Diamond processor and trader HB Antwerp said on Monday it had removed one of its three co-founders from management following differences over strategy, a development that comes amid a pending sales pact with major producer Botswana. "On September 1, HB terminated Mr Oded Mansori's management role in all the HB Companies," the Belgian company said in a statement, citing a "sharp difference in strategic vision and approaches to business".
|
2277.0
|
2023-09-11 00:00:00 UTC
|
JetBlue agrees to sell Spirit assets in Boston, Newark to Allegiant
|
AAL
|
https://www.nasdaq.com/articles/jetblue-agrees-to-sell-spirit-assets-in-boston-newark-to-allegiant
|
nan
|
nan
|
By David Shepardson
Sept 11 (Reuters) - JetBlue Airways Corp JBLU.O said Monday it had agreed to sell all of Spirit Airlines SAVE.N assets at Boston and Newark Liberty airports to Allegiant ALGT.O, as it works to win approval for its tie-up with Spirit.
JetBlue said it had agreed to transfer two gates in Boston, two gates in Newark, and 43 takeoff and landing authorizations in Newark to Allegiant.
In addition, it has agreed to relinquish up to five gates at Fort Lauderdale-Hollywood International Airport to the Broward County Aviation Department, and will work closely with the department to facilitate Allegiant's growth at that airport using these gates, JetBlue said.
The Justice Department, joined by Massachusetts and other state attorneys general, sued in March seeking to block JetBlue's $3.8 billion acquisition of Spirit, alleging the deal was "presumptively illegal" and would "lead to higher fares and fewer seats, harming millions of consumers on hundreds of routes." Trial is set to begin Oct. 16.
The deal would be the biggest in the U.S. airline industry since American Airlines AAL.O and US Airways merged in 2013.
On June 1, JetBlue said it would divest all of Spirit’s holdings at New York LaGuardia to Frontier ULCC.O. Both the Allegiant and Frontier agreements are conditioned on the completion of the JetBlue-Spirit transaction and must get approvals from regulatory and airport authorities.
JetBlue CEO Robin Hayes said the "divestiture commitment, while not needed to ensure the continued growth of the vibrant ultra-low-cost carrier segment, is aimed at removing any doubt of our commitment to promoting competition."
JetBlue said in July it would not challenge a U.S. judge's May order that it end an alliance with American Airlines. The decision terminated the three-year-old "Northeast Alliance," which allowed the two carriers to coordinate flights and pool revenue.
JetBlue argued terminating its alliance with American renders "entirely moot" the government's objections to its deal to buy Spirit.
(Reporting by David Shepardson in Washington and Mehr Bedi in Bengaluru Editing by Anil D'Silva and Mark Potter)
((Mehr.Bedi@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 deal would be the biggest in the U.S. airline industry since American Airlines AAL.O and US Airways merged in 2013. The Justice Department, joined by Massachusetts and other state attorneys general, sued in March seeking to block JetBlue's $3.8 billion acquisition of Spirit, alleging the deal was "presumptively illegal" and would "lead to higher fares and fewer seats, harming millions of consumers on hundreds of routes." Both the Allegiant and Frontier agreements are conditioned on the completion of the JetBlue-Spirit transaction and must get approvals from regulatory and airport authorities.
|
The deal would be the biggest in the U.S. airline industry since American Airlines AAL.O and US Airways merged in 2013. By David Shepardson Sept 11 (Reuters) - JetBlue Airways Corp JBLU.O said Monday it had agreed to sell all of Spirit Airlines SAVE.N assets at Boston and Newark Liberty airports to Allegiant ALGT.O, as it works to win approval for its tie-up with Spirit. JetBlue said it had agreed to transfer two gates in Boston, two gates in Newark, and 43 takeoff and landing authorizations in Newark to Allegiant.
|
The deal would be the biggest in the U.S. airline industry since American Airlines AAL.O and US Airways merged in 2013. By David Shepardson Sept 11 (Reuters) - JetBlue Airways Corp JBLU.O said Monday it had agreed to sell all of Spirit Airlines SAVE.N assets at Boston and Newark Liberty airports to Allegiant ALGT.O, as it works to win approval for its tie-up with Spirit. JetBlue said it had agreed to transfer two gates in Boston, two gates in Newark, and 43 takeoff and landing authorizations in Newark to Allegiant.
|
The deal would be the biggest in the U.S. airline industry since American Airlines AAL.O and US Airways merged in 2013. By David Shepardson Sept 11 (Reuters) - JetBlue Airways Corp JBLU.O said Monday it had agreed to sell all of Spirit Airlines SAVE.N assets at Boston and Newark Liberty airports to Allegiant ALGT.O, as it works to win approval for its tie-up with Spirit. JetBlue argued terminating its alliance with American renders "entirely moot" the government's objections to its deal to buy Spirit.
|
2278.0
|
2023-09-08 00:00:00 UTC
|
American Airlines (AAL) Stock Sinks As Market Gains: What You Should Know
|
AAL
|
https://www.nasdaq.com/articles/american-airlines-aal-stock-sinks-as-market-gains%3A-what-you-should-know-5
|
nan
|
nan
|
American Airlines (AAL) closed at $13.98 in the latest trading session, marking a -0.14% move from the prior day. This change lagged the S&P 500's daily gain of 0.14%. Meanwhile, the Dow gained 0.22%, and the Nasdaq, a tech-heavy index, added 0.09%.
Heading into today, shares of the world's largest airline had lost 11.17% over the past month, lagging the Transportation sector's loss of 6.54% and the S&P 500's loss of 1.27% in that time.
Wall Street will be looking for positivity from American Airlines as it approaches its next earnings report date. In that report, analysts expect American Airlines to post earnings of $0.75 per share. This would mark year-over-year growth of 8.7%. Our most recent consensus estimate is calling for quarterly revenue of $13.59 billion, up 0.93% from the year-ago period.
AAL's full-year Zacks Consensus Estimates are calling for earnings of $3.09 per share and revenue of $53.11 billion. These results would represent year-over-year changes of +518% and +8.46%, respectively.
Any recent changes to analyst estimates for American Airlines should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 8.31% lower. American Airlines is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that American Airlines has a Forward P/E ratio of 4.53 right now. For comparison, its industry has an average Forward P/E of 8.43, which means American Airlines is trading at a discount to the group.
Investors should also note that AAL has a PEG ratio of 0.08 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Transportation - Airline stocks are, on average, holding a PEG ratio of 0.34 based on yesterday's closing prices.
The Transportation - Airline industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 85, which puts it in the top 34% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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 a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ 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) closed at $13.98 in the latest trading session, marking a -0.14% move from the prior day. AAL's full-year Zacks Consensus Estimates are calling for earnings of $3.09 per share and revenue of $53.11 billion. Investors should also note that AAL has a PEG ratio of 0.08 right now.
|
Click to get this free report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines (AAL) closed at $13.98 in the latest trading session, marking a -0.14% move from the prior day. AAL's full-year Zacks Consensus Estimates are calling for earnings of $3.09 per share and revenue of $53.11 billion.
|
Click to get this free report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines (AAL) closed at $13.98 in the latest trading session, marking a -0.14% move from the prior day. AAL's full-year Zacks Consensus Estimates are calling for earnings of $3.09 per share and revenue of $53.11 billion.
|
American Airlines (AAL) closed at $13.98 in the latest trading session, marking a -0.14% move from the prior day. AAL's full-year Zacks Consensus Estimates are calling for earnings of $3.09 per share and revenue of $53.11 billion. Investors should also note that AAL has a PEG ratio of 0.08 right now.
|
2279.0
|
2023-09-08 00:00:00 UTC
|
White House to announce new funding to reduce aviation close calls
|
AAL
|
https://www.nasdaq.com/articles/white-house-to-announce-new-funding-to-reduce-aviation-close-calls-0
|
nan
|
nan
|
By David Shepardson
WASHINGTON, Sept 8 (Reuters) - The White House on Friday will announce $26 million in new funding to improve U.S. aviation safety after a series of potentially catastrophic near-miss incidents this year, officials told Reuters.
The Federal Aviation Administration (FAA) will spend $10 million to improve controller situational awareness and reduce runway close calls by deploying surface surveillance systems to additional airports.
The National Transportation Safety Board (NTSB) is investigating seven runway incursion events since January.
Officials said the FAA will also spend $8 million to expand its terminal automation system to prevent incorrect runway landings that can result in close calls.
It will spend another $8 million to deploy a runway incursion memory aid device used by controllers for occupied and closed runways to 72 additional airports. The device provides visual and audible alerts to remind controllers to check the runway before issuing clearances.
On Thursday, the White House nominated Michael Whitaker, a former deputy FAA administrator, to serve as the head of the FAA. The department has been without a permanent administrator since April 2022.
NTSB Chair Jennifer Homendy in May said the United States needed to invest more in aviation safety technology solutions after a series of close-call incidents this year. There was a near collision just last month between a Southwest Airlines LUV.N Boeing 737 and a Cessna Citation 560X business jet in San Diego.
Technology systems that help detect aircraft and ground vehicles at airports to prevent runway incursion are currently used at 43 U.S. airports. That technology needs to be upgraded and extended to all other commercial airports she said. The United States has about 500 commercial airports.
The White House on Friday also called on Congress for new money for aviation safety. The current FAA authorization expires on Sept. 30.
A computer system outage of a pilot alerting database in January prompted the FAA to halt departing flights for about two hours, the first nationwide ground stop since the Sept. 11, 2001, attacks, disrupting more than 11,000 U.S. flights.
The FAA is also facing a shortage of air traffic controllers and last month cited the issue in agreeing to extend temporary cuts to minimum flight requirements at some congested airports.
(Reporting by David Shepardson; Editing by Chizu Nomiyama and Mark Porter)
((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.
|
The Federal Aviation Administration (FAA) will spend $10 million to improve controller situational awareness and reduce runway close calls by deploying surface surveillance systems to additional airports. NTSB Chair Jennifer Homendy in May said the United States needed to invest more in aviation safety technology solutions after a series of close-call incidents this year. The FAA is also facing a shortage of air traffic controllers and last month cited the issue in agreeing to extend temporary cuts to minimum flight requirements at some congested airports.
|
By David Shepardson WASHINGTON, Sept 8 (Reuters) - The White House on Friday will announce $26 million in new funding to improve U.S. aviation safety after a series of potentially catastrophic near-miss incidents this year, officials told Reuters. The Federal Aviation Administration (FAA) will spend $10 million to improve controller situational awareness and reduce runway close calls by deploying surface surveillance systems to additional airports. It will spend another $8 million to deploy a runway incursion memory aid device used by controllers for occupied and closed runways to 72 additional airports.
|
The Federal Aviation Administration (FAA) will spend $10 million to improve controller situational awareness and reduce runway close calls by deploying surface surveillance systems to additional airports. It will spend another $8 million to deploy a runway incursion memory aid device used by controllers for occupied and closed runways to 72 additional airports. Technology systems that help detect aircraft and ground vehicles at airports to prevent runway incursion are currently used at 43 U.S. airports.
|
It will spend another $8 million to deploy a runway incursion memory aid device used by controllers for occupied and closed runways to 72 additional airports. That technology needs to be upgraded and extended to all other commercial airports she said. The White House on Friday also called on Congress for new money for aviation safety.
|
2280.0
|
2023-09-08 00:00:00 UTC
|
White House to announce new funding to reduce aviation close calls
|
AAL
|
https://www.nasdaq.com/articles/white-house-to-announce-new-funding-to-reduce-aviation-close-calls
|
nan
|
nan
|
WASHINGTON, Sept 8 (Reuters) - The White House will announce on Friday $26 million in new funding to improve U.S. aviation safety after a series of potentially catastrophic near miss incidents this year, officials told Reuters.
The Federal Aviation Administration (FAA) will spend $10 million to improve controller situational awareness and reduce runway close-calls by deploying surface surveillance systems to additional airports.
Last month, there was a near collision in August between a Southwest Airlines LUV.N Boeing 737 and a Cessna Citation 560X business jet in San Diego. The National Transportation Safety Board is investigating seven runway incursion events since January.
Officials said the FAA will also spend $8 million to expand its terminal automation system to prevent incorrect runway landings that can result in close-calls and another $8 million to deploy a runway incursion memory aid device used by controllers for occupied and closed runways to 72 additional airports. The device provides visual and audible alerts to remind controllers to check the runway before issuing clearances.
(Reporting by David Shepardson; Editing by Chizu Nomiyama)
((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.
|
The Federal Aviation Administration (FAA) will spend $10 million to improve controller situational awareness and reduce runway close-calls by deploying surface surveillance systems to additional airports. Last month, there was a near collision in August between a Southwest Airlines LUV.N Boeing 737 and a Cessna Citation 560X business jet in San Diego. The device provides visual and audible alerts to remind controllers to check the runway before issuing clearances.
|
WASHINGTON, Sept 8 (Reuters) - The White House will announce on Friday $26 million in new funding to improve U.S. aviation safety after a series of potentially catastrophic near miss incidents this year, officials told Reuters. The Federal Aviation Administration (FAA) will spend $10 million to improve controller situational awareness and reduce runway close-calls by deploying surface surveillance systems to additional airports. Officials said the FAA will also spend $8 million to expand its terminal automation system to prevent incorrect runway landings that can result in close-calls and another $8 million to deploy a runway incursion memory aid device used by controllers for occupied and closed runways to 72 additional airports.
|
The Federal Aviation Administration (FAA) will spend $10 million to improve controller situational awareness and reduce runway close-calls by deploying surface surveillance systems to additional airports. Officials said the FAA will also spend $8 million to expand its terminal automation system to prevent incorrect runway landings that can result in close-calls and another $8 million to deploy a runway incursion memory aid device used by controllers for occupied and closed runways to 72 additional airports. (Reporting by David Shepardson; Editing by Chizu Nomiyama) ((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.
|
WASHINGTON, Sept 8 (Reuters) - The White House will announce on Friday $26 million in new funding to improve U.S. aviation safety after a series of potentially catastrophic near miss incidents this year, officials told Reuters. The Federal Aviation Administration (FAA) will spend $10 million to improve controller situational awareness and reduce runway close-calls by deploying surface surveillance systems to additional airports. Last month, there was a near collision in August between a Southwest Airlines LUV.N Boeing 737 and a Cessna Citation 560X business jet in San Diego.
|
2281.0
|
2023-09-08 00:00:00 UTC
|
De Beers 'confident' talks will avert strike at S.Africa's Venetia mine
|
AAL
|
https://www.nasdaq.com/articles/de-beers-confident-talks-will-avert-strike-at-s.africas-venetia-mine
|
nan
|
nan
|
Sept 8 (Reuters) - Anglo American Plc's AAL.L De Beers is confident ongoing talks with South Africa's National Union of Mineworkers (NUM) will avert a wage strike at Venetia, the country's largest diamond mine, the company said on Friday.
On Tuesday, NUM, South Africa's biggest mineworkers' union, said it was planning a strike at Venetia, as De Beers could only offer a 6% pay increase against demands for a 9% hike.
The strike by NUM's 1,500 workers would impact operations at Venetia's new $2.3 billion underground operations, which started production in July. De Beers stopped its 30-year open pit operations at Venetia in December 2022.
In a statement, De Beers said it held a meeting with NUM representatives on Sept.6, facilitated by the Commission for Conciliation, Mediation and Arbitration (CCMA), a statutory body that mediates labour disputes.
"We are confident that through continued engagement with the union and our employees we will reach a sustainable settlement with the NUM," De Beers said.
The miner said the diamond industry is facing "challenging market conditions" impacting its business.
NUM was not immediately available for comment.
De Beers said it was pursuing a five-year wage deal with workers to provide operational certainty amid the transition to underground mining which targets annual production of 4 million carats, the equivalent of 12% of the group's forecast output for 2023.
(Reporting by Nelson Banya; Editing by Sharon Singleton)
((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.
|
Sept 8 (Reuters) - Anglo American Plc's AAL.L De Beers is confident ongoing talks with South Africa's National Union of Mineworkers (NUM) will avert a wage strike at Venetia, the country's largest diamond mine, the company said on Friday. On Tuesday, NUM, South Africa's biggest mineworkers' union, said it was planning a strike at Venetia, as De Beers could only offer a 6% pay increase against demands for a 9% hike. De Beers said it was pursuing a five-year wage deal with workers to provide operational certainty amid the transition to underground mining which targets annual production of 4 million carats, the equivalent of 12% of the group's forecast output for 2023.
|
Sept 8 (Reuters) - Anglo American Plc's AAL.L De Beers is confident ongoing talks with South Africa's National Union of Mineworkers (NUM) will avert a wage strike at Venetia, the country's largest diamond mine, the company said on Friday. On Tuesday, NUM, South Africa's biggest mineworkers' union, said it was planning a strike at Venetia, as De Beers could only offer a 6% pay increase against demands for a 9% hike. The strike by NUM's 1,500 workers would impact operations at Venetia's new $2.3 billion underground operations, which started production in July.
|
Sept 8 (Reuters) - Anglo American Plc's AAL.L De Beers is confident ongoing talks with South Africa's National Union of Mineworkers (NUM) will avert a wage strike at Venetia, the country's largest diamond mine, the company said on Friday. On Tuesday, NUM, South Africa's biggest mineworkers' union, said it was planning a strike at Venetia, as De Beers could only offer a 6% pay increase against demands for a 9% hike. De Beers said it was pursuing a five-year wage deal with workers to provide operational certainty amid the transition to underground mining which targets annual production of 4 million carats, the equivalent of 12% of the group's forecast output for 2023.
|
Sept 8 (Reuters) - Anglo American Plc's AAL.L De Beers is confident ongoing talks with South Africa's National Union of Mineworkers (NUM) will avert a wage strike at Venetia, the country's largest diamond mine, the company said on Friday. On Tuesday, NUM, South Africa's biggest mineworkers' union, said it was planning a strike at Venetia, as De Beers could only offer a 6% pay increase against demands for a 9% hike. The strike by NUM's 1,500 workers would impact operations at Venetia's new $2.3 billion underground operations, which started production in July.
|
2282.0
|
2023-09-07 00:00:00 UTC
|
Exane BNP Paribas Upgrades American Airlines Group (AAL)
|
AAL
|
https://www.nasdaq.com/articles/exane-bnp-paribas-upgrades-american-airlines-group-aal
|
nan
|
nan
|
Fintel reports that on September 6, 2023, Exane BNP Paribas upgraded their outlook for American Airlines Group (NASDAQ:AAL) from Neutral to Outperform .
Analyst Price Forecast Suggests 27.36% Upside
As of August 31, 2023, the average one-year price target for American Airlines Group is 18.25. The forecasts range from a low of 11.11 to a high of $27.30. The average price target represents an increase of 27.36% from its latest reported closing price of 14.33.
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 1047 funds or institutions reporting positions in American Airlines Group. This is an increase of 11 owner(s) or 1.06% in the last quarter. Average portfolio weight of all funds dedicated to AAL is 0.15%, an increase of 8.95%. Total shares owned by institutions increased in the last three months by 1.20% to 416,956K shares.
The put/call ratio of AAL is 3.66, 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.
Additional reading:
AMERICAN AIRLINES REPORTS SECOND-QUARTER 2023 FINANCIAL RESULTS
Investor Relations Update July 20, 2023
Certain of the statements contained in this presentation should be considered forward-looking statements within the meaning of the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, and the Private Securities Litigat
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 September 6, 2023, Exane BNP Paribas upgraded their outlook for American Airlines Group (NASDAQ:AAL) from Neutral to Outperform . Average portfolio weight of all funds dedicated to AAL is 0.15%, an increase of 8.95%. The put/call ratio of AAL is 3.66, indicating a bearish outlook.
|
Fintel reports that on September 6, 2023, Exane BNP Paribas upgraded their outlook for American Airlines Group (NASDAQ:AAL) from Neutral to Outperform . Average portfolio weight of all funds dedicated to AAL is 0.15%, an increase of 8.95%. The put/call ratio of AAL is 3.66, indicating a bearish outlook.
|
Fintel reports that on September 6, 2023, Exane BNP Paribas upgraded their outlook for American Airlines Group (NASDAQ:AAL) from Neutral to Outperform . Average portfolio weight of all funds dedicated to AAL is 0.15%, an increase of 8.95%. The put/call ratio of AAL is 3.66, indicating a bearish outlook.
|
Fintel reports that on September 6, 2023, Exane BNP Paribas upgraded their outlook for American Airlines Group (NASDAQ:AAL) from Neutral to Outperform . Average portfolio weight of all funds dedicated to AAL is 0.15%, an increase of 8.95%. The put/call ratio of AAL is 3.66, indicating a bearish outlook.
|
2283.0
|
2023-09-06 00:00:00 UTC
|
American Airlines (AAL) Gains As Market Dips: What You Should Know
|
AAL
|
https://www.nasdaq.com/articles/american-airlines-aal-gains-as-market-dips%3A-what-you-should-know-10
|
nan
|
nan
|
American Airlines (AAL) closed at $14.33 in the latest trading session, marking a +0.21% move from the prior day. This move outpaced the S&P 500's daily loss of 0.7%. At the same time, the Dow lost 0.57%, and the tech-heavy Nasdaq lost 1.06%.
Prior to today's trading, shares of the world's largest airline had lost 11.62% over the past month. This has lagged the Transportation sector's loss of 4.85% and the S&P 500's gain of 0.58% in that time.
Investors will be hoping for strength from American Airlines as it approaches its next earnings release. In that report, analysts expect American Airlines to post earnings of $0.75 per share. This would mark year-over-year growth of 8.7%. Meanwhile, our latest consensus estimate is calling for revenue of $13.59 billion, up 0.93% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.18 per share and revenue of $53.11 billion. These totals would mark changes of +536% and +8.46%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for American Airlines. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 5.57% lower within the past month. American Airlines currently has a Zacks Rank of #3 (Hold).
In terms of valuation, American Airlines is currently trading at a Forward P/E ratio of 4.5. This represents a discount compared to its industry's average Forward P/E of 8.58.
The Transportation - Airline industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 83, which puts it in the top 33% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
The New Gold Rush: How Lithium Batteries Will Make Millionaires
As the electric vehicle revolution expands, investors have a chance to target huge gains. Millions of lithium batteries are being made & demand is expected to increase 889%.
Download the brand-new FREE report revealing 5 EV battery stocks set to soar.
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) closed at $14.33 in the latest trading session, marking a +0.21% move from the prior day. Click to get this free report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.18 per share and revenue of $53.11 billion.
|
American Airlines (AAL) closed at $14.33 in the latest trading session, marking a +0.21% move from the prior day. Click to get this free report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.18 per share and revenue of $53.11 billion.
|
American Airlines (AAL) closed at $14.33 in the latest trading session, marking a +0.21% move from the prior day. 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 industry currently has a Zacks Industry Rank of 83, which puts it in the top 33% of all 250+ industries.
|
American Airlines (AAL) closed at $14.33 in the latest trading session, marking a +0.21% move from the prior day. 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 Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.
|
2284.0
|
2023-09-06 00:00:00 UTC
|
American Airlines (AAL) Gains As Market Dips: What You Should Know
|
AAL
|
https://www.nasdaq.com/articles/american-airlines-aal-gains-as-market-dips%3A-what-you-should-know-11
|
nan
|
nan
|
American Airlines (AAL) closed at $14.33 in the latest trading session, marking a +0.21% move from the prior day. This move outpaced the S&P 500's daily loss of 0.7%. At the same time, the Dow lost 0.57%, and the tech-heavy Nasdaq lost 1.06%.
Prior to today's trading, shares of the world's largest airline had lost 11.62% over the past month. This has lagged the Transportation sector's loss of 4.85% and the S&P 500's gain of 0.58% in that time.
Investors will be hoping for strength from American Airlines as it approaches its next earnings release. In that report, analysts expect American Airlines to post earnings of $0.75 per share. This would mark year-over-year growth of 8.7%. Meanwhile, our latest consensus estimate is calling for revenue of $13.59 billion, up 0.93% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.18 per share and revenue of $53.11 billion. These totals would mark changes of +536% and +8.46%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for American Airlines. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 5.57% lower within the past month. American Airlines currently has a Zacks Rank of #3 (Hold).
In terms of valuation, American Airlines is currently trading at a Forward P/E ratio of 4.5. This represents a discount compared to its industry's average Forward P/E of 8.58.
The Transportation - Airline industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 83, which puts it in the top 33% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
The New Gold Rush: How Lithium Batteries Will Make Millionaires
As the electric vehicle revolution expands, investors have a chance to target huge gains. Millions of lithium batteries are being made & demand is expected to increase 889%.
Download the brand-new FREE report revealing 5 EV battery stocks set to soar.
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) closed at $14.33 in the latest trading session, marking a +0.21% move from the prior day. Click to get this free report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.18 per share and revenue of $53.11 billion.
|
American Airlines (AAL) closed at $14.33 in the latest trading session, marking a +0.21% move from the prior day. Click to get this free report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.18 per share and revenue of $53.11 billion.
|
American Airlines (AAL) closed at $14.33 in the latest trading session, marking a +0.21% move from the prior day. 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 industry currently has a Zacks Industry Rank of 83, which puts it in the top 33% of all 250+ industries.
|
American Airlines (AAL) closed at $14.33 in the latest trading session, marking a +0.21% move from the prior day. 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 Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.
|
2285.0
|
2023-09-06 00:00:00 UTC
|
Chile's miners ready to absorb higher domestic royalties, Fitch says
|
AAL
|
https://www.nasdaq.com/articles/chiles-miners-ready-to-absorb-higher-domestic-royalties-fitch-says
|
nan
|
nan
|
SANTIAGO, Sept 6 (Reuters) - Mining companies operating in Chile, the world's top copper producer, are well positioned to absorb higher domestic royalties required by a new law enacted by the country's leftist government, Fitch ratings agency said on Wednesday.
A long-awaited mining reform approved by Chilean lawmakers in May requires large copper producers to pay more taxes and royalties to the government.
"Chile's new mining royalty law will not materially weaken the competitiveness of the country's copper mining sector, but it will increase taxes, modestly pressuring miners' cash flows," Fitch said in a report.
Global mining companies such as BHP BHP.AX, Anglo American AAL.L and Glencore GLEN.L are among those whose cash flows will be strained by the reform, Fitch said.
Several large globally diversified industry players "have made substantial capex (capital expenditure) commitments following the royalty finalization, suggesting mining economics remain competitive globally under the new tax regime," it added.
The new tax regime is taking effect gradually, since several operations maintain previously signed tax invariability contracts.
However, Fitch noted that "difficulties related to obtaining environmental permits will likely lead to a period in 2024 where no new projects come online, after the completion of (Teck Resources') Quebrada Blanca this year."
Private copper miners have demanded cuts in energy costs, faster permit approvals and other incentives to offset the burden of the new royalty regime and avoid a decline in investment.
Fitch estimates that Chile's total tax on mining companies will stay above Peru's by roughly two percentage points and be about four percentage points higher than that of Australia and the Canadian province of British Columbia.
However, it will be much lower than taxes on mining firms in African countries such as Zambia and the Democratic Republic of Congo.
Fitch also said it expects Antofagasta Minerals "will maintain its robust financial position despite modest cash flow reduction from higher taxes." The key Antucoya and Centinela subsidiaries of the mining firm have tax stability agreements until 2030 and 2031, respectively, it added.
The new tax proposal will likely affect the cash flow of Chilean state-run mining firm Codelco, which hands all its profits to the government, and the increase in the tax structure will reduce the profit retention agreement the government entered into with the company, Fitch added.
(Reporting by Fabian Cambero; Writing by Carolina Pulice; Editing by Paul Simao)
((Carolina.Pulice@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.
|
Global mining companies such as BHP BHP.AX, Anglo American AAL.L and Glencore GLEN.L are among those whose cash flows will be strained by the reform, Fitch said. SANTIAGO, Sept 6 (Reuters) - Mining companies operating in Chile, the world's top copper producer, are well positioned to absorb higher domestic royalties required by a new law enacted by the country's leftist government, Fitch ratings agency said on Wednesday. However, Fitch noted that "difficulties related to obtaining environmental permits will likely lead to a period in 2024 where no new projects come online, after the completion of (Teck Resources') Quebrada Blanca this year."
|
Global mining companies such as BHP BHP.AX, Anglo American AAL.L and Glencore GLEN.L are among those whose cash flows will be strained by the reform, Fitch said. SANTIAGO, Sept 6 (Reuters) - Mining companies operating in Chile, the world's top copper producer, are well positioned to absorb higher domestic royalties required by a new law enacted by the country's leftist government, Fitch ratings agency said on Wednesday. A long-awaited mining reform approved by Chilean lawmakers in May requires large copper producers to pay more taxes and royalties to the government.
|
Global mining companies such as BHP BHP.AX, Anglo American AAL.L and Glencore GLEN.L are among those whose cash flows will be strained by the reform, Fitch said. SANTIAGO, Sept 6 (Reuters) - Mining companies operating in Chile, the world's top copper producer, are well positioned to absorb higher domestic royalties required by a new law enacted by the country's leftist government, Fitch ratings agency said on Wednesday. "Chile's new mining royalty law will not materially weaken the competitiveness of the country's copper mining sector, but it will increase taxes, modestly pressuring miners' cash flows," Fitch said in a report.
|
Global mining companies such as BHP BHP.AX, Anglo American AAL.L and Glencore GLEN.L are among those whose cash flows will be strained by the reform, Fitch said. A long-awaited mining reform approved by Chilean lawmakers in May requires large copper producers to pay more taxes and royalties to the government. "Chile's new mining royalty law will not materially weaken the competitiveness of the country's copper mining sector, but it will increase taxes, modestly pressuring miners' cash flows," Fitch said in a report.
|
2286.0
|
2023-09-06 00:00:00 UTC
|
Strength in U.S. Economic News Boosts Bond Yields and Weighs on Stocks
|
AAL
|
https://www.nasdaq.com/articles/strength-in-u.s.-economic-news-boosts-bond-yields-and-weighs-on-stocks
|
nan
|
nan
|
What you need to know…
The S&P 500 Index ($SPX) (SPY) today is down -0.83%, the Dow Jones Industrials Index ($DOWI) (DIA) is down -0.52%, and the Nasdaq 100 Index ($IUXX) (QQQ) is down -1.03%.
Stock indexes this morning are moderately lower, with the S&P 500, Dow Jones Industrials, and Nasdaq 100 indexes falling to one-week lows. Stocks opened lower this morning on negative carryover from a fall in the Euro Stoxx 50 to a 1-1/2 week low on weaker-than-expected Eurozone economic news. Losses in stocks accelerated as bond yields jumped after today’s Aug ISM services report expanded more than expected, bolstering speculation the Fed will keep interest rates higher for longer.
The U.S. Aug ISM services index unexpectedly rose +1.8 to a 6-month high of 54.5, stronger than expectations of a decline to 52.5.
The U.S. Jul trade deficit widened to -$65.0 billion from -$63.7 billion in June, a smaller deficit than expectations of -$68.0 billion.
Boston Fed President Collins said it's "too early" to say if inflation is on a sustained path to 2%, and further tightening may be warranted depending on the data. She added that the Fed will "need to hold rates at restrictive levels for some time" as while demand is moderating, it continues to outpace supply, adding to price pressures.
The markets are discounting the odds at 8% for a +25 bp rate hike at the September 20 FOMC meeting and 54% for that +25 bp rate hike at the November 1 FOMC meeting.
Global bond yields are higher. The 10-year T-note yield rose to a 2-week high of 4.296% and is up +2.6 bp at 4.286%. The 10-year German bund yield rose to a 2-week high of 2.654% and is up +4.1 bp at 2.653%. The 10-year UK gilt yield rose to a 2-week high of 4.559% and is up +1.1 bp at 4.536%.
Overseas stock markets are mixed. The Euro Stoxx 50 is down -0.74%. China’s Shanghai Composite Index closed up +0.12%. Japan’s Nikkei Stock Index closed up +0.62%.
Today’s stock movers…
Nvidia (NVDA) is down more than -3% after Research Affiliates said the stock is “a textbook story of a Big Market Delusion,” and with shares trading around 110 times earnings, the stock is priced beyond perfection.
Apple (AAPL) is down more than -3%, leading losers in the Dow Jones Industrials as higher T-note yields weigh on tech stocks. Losses in Apple accelerated on technical selling after the stock fell below its 50-day moving average.
Warner Bros Discovery (WBD) is down more than -3% after it forecasted full-year Ebitda of $10.5 billion-$11.0 billion, down about $500 million from a previous estimate due to the impact of strikes from actors and writers.
Tesla (TSLA) is down more than -3% to lead losers in the Nasdaq 100 after Indonesian Coordinating Maritime Affairs and Investment Minister Panjaitan said CEO Musk is concerned about the state of the global economy and possible overcapacity in the EV market and shelved expansion plans in Indonesia.
Gilead Sciences (GILD) is down more than -2% after HSBC initiated coverage of the stock with a recommendation of reduce and a price target of $71.
Olin Corp (OLN) is down more than -2% after Goldman Sachs downgraded the stock to neutral from buy.
Southwest Airlines (LUV) is down more than -1% after Airlines it said that due to surging jet fuel costs, revenue for each seat flown mile would fall -5% to -7% from a year earlier compared with an earlier outlook for a drop of -3% to -7%.
Dexcom (DXCM) is up more than +5% to lead gainers in the S&P 500 and Nasdaq 100 after Jeffries said the use of obesity drugs appears to increase the use of type 2 diabetes continuous glucose monitors, which Dexcom manufactures.
Nasdaq Inc (NDAQ) is up more than +2% after reporting August equity options volume rose +8.8% y/y to 298 million contracts.
Salesforce (CRM) is up more than +1% to lead gainers in the Dow Jones Industrials after it said it added new artificial intelligence (AI) capabilities and automation improvements.
American Airlines Group (AAL) is up more than +2% after BNP Paribas Exane upgraded the stock to outperform from neutral with a price target of $20.
AeroVironment (AVAV) is up more than +27% after reporting Q1 revenue of $152.3 million, better than the consensus of $128.5 million, and raising its 2024 revenue forecast to $635 million-$675 million from a previous forecast of $630 million-$660 million, stronger than the consensus of $656 million.
NexGen Healthcare (NXGN) is up more than +14% after Thoma Bravo agreed to acquire the company for $23.95 a share.
Gitlab (GTLB) is up more than +4% after reporting Q2 revenue of $139.6 million, above the consensus of $129.9 million, and raising its 2024 revenue forecast to $555 million-$557 million from a previous forecast of $541 million-$543 million, better than the consensus of $542.9 million.
Trade Desk (TTD) is up more than +1% after William Blair initiated coverage on the stock with an outperform recommendation.
Across the markets…
December 10-year T-notes (ZNZ23) today are down -7 ticks, and the 10-year T-note yield is up +2.6 bp at 4.286%. Dec T-note prices today gave up an early advance and fell to a 1-1/2 week low, and the 10-year T-note yield rose to a 2-week high of 4.296% on stronger-than-expected U.S. economic news after the Aug ISM services index unexpectedly expanded by the most in 6 months. Also, comments today from Boston Fed President Collins weighed on T-note prices when she said it is "too early" to say if inflation is on a sustained path to 2% and further tightening may be warranted depending on the data.
The dollar index (DXY00) today is up +0.06% and posted a 5-1/2 month high. The dollar recovered from overnight losses and moved higher as T-note yields climbed on the stronger-than-expected Aug ISM services report. Also, hawkish comments from Boston Fed President Collins supported the dollar. In addition, Chinese economic concerns weighed on the yuan, which fell to a 10-month low against the dollar today.
EUR/USD (^EURUSD) is down by -0.06% and dropped to a 2-3/4 month low. The euro gave up overnight gains and turned lower after the dollar rebounded from early losses and moved higher. Also, weakness in Eurozone economic news weighed on the euro after Eurozone July retail sales fell for the first time in four months and after German Jul factory orders fell by the most in 3-1/4 years. EUR/USD today initially moved higher on hawkish ECB comments after ECB Governing Council member said the markets are underplaying the risks of an ECB rate hike next week, and Governing Council member Kazimir said a September rate hike is preferable to a later increase.
Eurozone July retail sales fell -0.2% m/m, right on expectations and the first decline in four months.
German July factory orders fell -11.7% m/m, weaker than expectations of -4.3% m/m and the biggest decline in 3-1/4 years.
ECB Governing Council member Kazimir said the ECB needs to raise interest rates one more time to make sure inflation returns to 2%, and a September rate hike is "preferable" to a later increase.
ECB Governing Council member Knot said investors betting against an ECB rate hike next week are "maybe" underestimating the likelihood of it happening.
USD/JPY (^USDJPY) is down -0.10%. The yen today recovered from a 10-month low against the dollar and is slightly higher. Comments from Japan’s top currency official, Masato Kanda, sparked short covering in the yen when he said he wouldn’t rule out any options if forex moves continue. The yen gave up some of its gains after T-note yields rose.
October gold (GCV3) today is down -8.8 (-0.45%), and Dec silver (SIZ23) is down -0.433 (-1.81%). Precious metals prices this morning are moderately lower, with gold dropping to a 1-week low and silver falling to a 2-week low. Today's rally in the dollar index to a 5-1/2 month high is bearish for metals. Also, rising global bond yields are negative for precious metals prices. In addition, hawkish central bank comments undercut precious metals when Boston Fed President Collins said it is "too early" to say if inflation is on a sustained path to 2% and further tightening may be warranted, and ECB Governing Council member Kazimir said the ECB needs to raise interest rates one more time to make sure inflation returns to 2%.
More Stock Market News from Barchart
Rent the Runway Alert: Options Traders Are Placing Big Bets on RENT Stock
Peloton Stock: Should You Buy the Dip or Dodge the Value Trap?
Markets Today: Stocks Slip as Weak Eurozone Economic News Fuels Growth Concerns
Ride to Multi-Month Highs With These Top Barchart Opinion 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% after BNP Paribas Exane upgraded the stock to outperform from neutral with a price target of $20. Losses in stocks accelerated as bond yields jumped after today’s Aug ISM services report expanded more than expected, bolstering speculation the Fed will keep interest rates higher for longer. Tesla (TSLA) is down more than -3% to lead losers in the Nasdaq 100 after Indonesian Coordinating Maritime Affairs and Investment Minister Panjaitan said CEO Musk is concerned about the state of the global economy and possible overcapacity in the EV market and shelved expansion plans in Indonesia.
|
American Airlines Group (AAL) is up more than +2% after BNP Paribas Exane upgraded the stock to outperform from neutral with a price target of $20. Dec T-note prices today gave up an early advance and fell to a 1-1/2 week low, and the 10-year T-note yield rose to a 2-week high of 4.296% on stronger-than-expected U.S. economic news after the Aug ISM services index unexpectedly expanded by the most in 6 months. Also, weakness in Eurozone economic news weighed on the euro after Eurozone July retail sales fell for the first time in four months and after German Jul factory orders fell by the most in 3-1/4 years.
|
American Airlines Group (AAL) is up more than +2% after BNP Paribas Exane upgraded the stock to outperform from neutral with a price target of $20. Today’s stock movers… Nvidia (NVDA) is down more than -3% after Research Affiliates said the stock is “a textbook story of a Big Market Delusion,” and with shares trading around 110 times earnings, the stock is priced beyond perfection. Dec T-note prices today gave up an early advance and fell to a 1-1/2 week low, and the 10-year T-note yield rose to a 2-week high of 4.296% on stronger-than-expected U.S. economic news after the Aug ISM services index unexpectedly expanded by the most in 6 months.
|
American Airlines Group (AAL) is up more than +2% after BNP Paribas Exane upgraded the stock to outperform from neutral with a price target of $20. Apple (AAPL) is down more than -3%, leading losers in the Dow Jones Industrials as higher T-note yields weigh on tech stocks. Dec T-note prices today gave up an early advance and fell to a 1-1/2 week low, and the 10-year T-note yield rose to a 2-week high of 4.296% on stronger-than-expected U.S. economic news after the Aug ISM services index unexpectedly expanded by the most in 6 months.
|
2287.0
|
2023-09-06 00:00:00 UTC
|
Markets Today: Stocks Slip as Weak Eurozone Economic News Fuels Growth Concerns
|
AAL
|
https://www.nasdaq.com/articles/markets-today%3A-stocks-slip-as-weak-eurozone-economic-news-fuels-growth-concerns
|
nan
|
nan
|
Morning Markets
September E-Mini S&P 500 futures (ESU23) this morning are down -0.31% at a 1-week low, and Sep Nasdaq 100 E-Mini futures (NQU23) are down -0.36%.
Stock indexes this morning are moderately lower on negative carryover from a fall in the Euro Stoxx 50 to a 1-1/2 week low on weaker-than-expected Eurozone economic news. Also, concerns that soaring oil prices will boost inflation and eat into company profits are weighing on the overall market, with airline stocks falling in pre-market trading due to rising jet fuel costs.
The U.S. Jul trade deficit widened to -$65.0 billion from -$63.7 billion in June, a smaller deficit than expectations of -$68.0 billion.
Boston Fed President Collins said it's "too early" to say if inflation is on a sustained path to 2%, and further tightening may be warranted depending on the data. She added that the Fed will "need to hold rates at restrictive levels for some time" as while demand is moderating, it continues to outpace supply, adding to price pressures.
The markets are discounting the odds at 7% for a +25 bp rate hike at the September 20 FOMC meeting and 45% for that +25 bp rate hike at the November 1 FOMC meeting.
Global bond yields are mixed. The 10-year T-note yield is down -1.8 bp at 4.242%. The 10-year German bund yield rose to a 2-week high of 2.650% and is up +0.3 bp at 2.614%. The 10-year UK gilt yield fell back from a 2-week high of 4.559% and is down -1.5 bp at 4.510%.
Overseas stock markets are mixed. The Euro Stoxx 50 is down -0.94%. China’s Shanghai Composite Index closed up +0.12%. Japan’s Nikkei Stock Index closed up +0.62%.
The Euro Stoxx 50 slipped to a 1-1/2 week low and is moderately lower. Weakness in today’s Eurozone economic news has sparked growth concerns and is weighing on stocks. Eurozone retail sales in July fell for the first time in four months, and German factory orders plunged by the most in 3-1/4 years. Also, rising government bond yields are fueling stagflation concerns as the 10-year German bund yield rose to a 2-week high today after ECB Governing Council member Knot warned that investors may be underestimating the chances of a rate hike by the ECB at next week’s policy meeting.
Eurozone July retail sales fell -0.2% m/m, right on expectations and the first decline in four months.
German July factory orders fell -11.7% m/m, weaker than expectations of -4.3% m/m and the biggest decline in 3-1/4 years.
ECB Governing Council member Knot said investors betting against an ECB rate hike next week are "maybe" underestimating the likelihood of it happening.
China’s Shanghai Composite Index closed slightly higher. Strength in property and building stocks led the overall market higher today on speculation the government will boost measures to support the sector. A front-page commentary in the state-controlled Securities Times said today that China should drop home-buying restrictions in regions other than top-tier cities with the hottest markets. In a separate report, the China Securities Journal said several regions recently adopted policies to accelerate the pace of property development and sales in order to ease developers’ funding pressures. The broader equities market was muted, and the yuan fell to a 10-month low against the dollar today on speculation the gains in property stocks may only be short-covering.
Japan’s Nikkei Stock Index today rallied to a 5-week high and closed moderately higher. Japanese automakers led the overall market higher, with Toyota Motor climbing more than +2% after SBI Securities raised its price target on Japan’s largest automaker. The Nikkei Stock Index fell back from its best levels as exporter stocks slid when the yen recovered from a 10-month low against the dollar. The yen moved higher after Japan’s top currency official, Masato Kanda, said he wouldn’t rule out any options if forex moves continue. Airline stocks retreated today after crude oil prices rallied to a 9-1/2 month high Tuesday, which boosts jet fuel prices and weighs on airlines’ profits.
Pre-Market U.S. Stock Movers
Airline stocks are under pressure in pre-market trading after Southwest Airlines said that due to surging jet fuel costs, revenue for each seat flown mile would fall -5% to -7% from a year earlier compared with an earlier outlook for a drop of -3% to -7%. As a result, Southwest Airlines (LUV) is down more than -5%. Also, United Airlines Holdings (UAL) is down more than -2%. In addition, American Airlines Group (AAL), Delta Air Lines (DAL), and Alaska Air Group (ALK) are down more than -1%.
Block Inc (SQ) fell over 2% in pre-market trading after UBS downgraded the stock to neutral from buy and said the company is likely to see a slowdown in gross profit growth.
Olin Corp (OLN) slid more than -2% in pre-market trading after Goldman Sachs downgraded the stock to neutral from buy.
Stem Inc (STEM) dropped more than -3% in pre-market trading after Morgan Stanley downgraded the stock to equal weight from overweight.
AeroVironment (AVAV) surged more than +13% in pre-market trading after reporting Q1 revenue of $152.3 million, better than the consensus of $128.5 million, and raising its 2024 revenue forecast to $635 million-$675 million from a previous forecast of $630 million-$660 million, stronger than the consensus of $656 million.
Gitlab (GTLB) jumped more than +7% in pre-market trading after reporting Q2 revenue of $139.6 million, above the consensus of $129.9 million, and raising its 2024 revenue forecast to $555 million-$557 million from a previous forecast of $541 million-$543 million, better than the consensus of $542.9 million.
Toast (TOST) climbed more than +3% in pre-market trading after UBS upgraded the stock to a buy with a price target of $30.
General Mills (GIS) gained more than +1% in pre-market trading after forecasting 2024 organic net sales of +3% to +4%, stronger than the consensus of +2.97%.
Roku (ROKU) rallied more than +8% in pre-market trading after raising its Q3 net revenue forecast to $835 million-$875 million from a prior view of $815 million and saying it plans to cut about 10% of its workforce.
NexGen Healthcare (NXGN) surged more than +15% in pre-market trading after Thoma Bravo agreed to acquire the company for $23.95 a share.
Mitek Systems (MITK) jumped more than +11% in pre-market trading after reporting Q1 adjusted EPS of 31 cents, well above the consensus of 20 cents, and raising its full-year adjusted operating margin to 30% to 31% from a prior view of 29.5% to 30.5%.
Earnings Reports (9/6/2023)
Akoustis Technologies Inc (AKTS), American Eagle Outfitters Inc (AEO), Argan Inc (AGX), C3.ai Inc (AI), Calavo Growers Inc (CVGW), Cantaloupe Inc (CTLP), ChargePoint Holdings Inc (CHPT), Core & Main Inc (CNM), Couchbase Inc (BASE), Daktronics Inc (DAKT), Dave & Buster's Entertainment (PLAY), GameStop Corp (GME), Intapp Inc (INTA), NioCorp Developments Ltd (NB), Photronics Inc (PLAB), Phreesia Inc (PHR), Sportsman's Warehouse Holdings (SPWH), Sprinklr Inc (CXM), Torrid Holdings Inc (CURV), UiPath Inc (PATH), Verint Systems Inc (VRNT), Yext Inc (YEXT).
More Stock Market News from Barchart
Ride to Multi-Month Highs With These Top Barchart Opinion Stocks!
Unveiling Bear Call Spread Screener Results for September 6th
Stock Index Futures Slip on Worries About Economic Slowdown, Interest Rate Outlook
Hannon Armstrong Joins S&P SmallCap 600: Time to Buy?
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.
|
In addition, American Airlines Group (AAL), Delta Air Lines (DAL), and Alaska Air Group (ALK) are down more than -1%. Stock indexes this morning are moderately lower on negative carryover from a fall in the Euro Stoxx 50 to a 1-1/2 week low on weaker-than-expected Eurozone economic news. Also, concerns that soaring oil prices will boost inflation and eat into company profits are weighing on the overall market, with airline stocks falling in pre-market trading due to rising jet fuel costs.
|
In addition, American Airlines Group (AAL), Delta Air Lines (DAL), and Alaska Air Group (ALK) are down more than -1%. Also, concerns that soaring oil prices will boost inflation and eat into company profits are weighing on the overall market, with airline stocks falling in pre-market trading due to rising jet fuel costs. Also, rising government bond yields are fueling stagflation concerns as the 10-year German bund yield rose to a 2-week high today after ECB Governing Council member Knot warned that investors may be underestimating the chances of a rate hike by the ECB at next week’s policy meeting.
|
In addition, American Airlines Group (AAL), Delta Air Lines (DAL), and Alaska Air Group (ALK) are down more than -1%. Pre-Market U.S. Stock Movers Airline stocks are under pressure in pre-market trading after Southwest Airlines said that due to surging jet fuel costs, revenue for each seat flown mile would fall -5% to -7% from a year earlier compared with an earlier outlook for a drop of -3% to -7%. AeroVironment (AVAV) surged more than +13% in pre-market trading after reporting Q1 revenue of $152.3 million, better than the consensus of $128.5 million, and raising its 2024 revenue forecast to $635 million-$675 million from a previous forecast of $630 million-$660 million, stronger than the consensus of $656 million.
|
In addition, American Airlines Group (AAL), Delta Air Lines (DAL), and Alaska Air Group (ALK) are down more than -1%. Also, rising government bond yields are fueling stagflation concerns as the 10-year German bund yield rose to a 2-week high today after ECB Governing Council member Knot warned that investors may be underestimating the chances of a rate hike by the ECB at next week’s policy meeting. Japan’s Nikkei Stock Index today rallied to a 5-week high and closed moderately higher.
|
2288.0
|
2023-09-06 00:00:00 UTC
|
US STOCKS-Wall St eyes lower open on renewed inflation worries, economic data in focus
|
AAL
|
https://www.nasdaq.com/articles/us-stocks-wall-st-eyes-lower-open-on-renewed-inflation-worries-economic-data-in-focus
|
nan
|
nan
|
By Shristi Achar A and Amruta Khandekar
Sept 6 (Reuters) - Wall Street was set to open lower on Wednesday as concerns about sticky inflation kept investors on edge ahead of key data, including the Federal Reserve's report on the U.S. economy, which could help determine the bank's interest rate path.
A rise in Treasury yields and oil prices had pushed stocks lower on Tuesday as signs of persistent inflationary pressures tempered expectations of a less hawkish Federal Reserve.
Investors now await a slew of fresh economic data due later in the day, including the S&P Global final U.S. composite Purchasing Managers' Index (PMI) and the ISM non-manufacturing PMI for hints on the state of the economy.
"The extension of output cuts by Russia and Saudi Arabia through to the end of the year is likely to add to inflationary pressures," said Russ Mould, investment director at AJ Bell in a note, adding the cuts could force the Fed to keep interest rates higher for longer.
Some analysts also said slowing economic growth in other parts of the world has hurt risk sentiment in recent days.
"If you look around the globe, China economic news is worsening, European macro news is not good. So at one point or another, that demand worry is going to impact the market," said Peter Cardillo, chief market economist at Spartan Capital Securities in New York.
Investors are also focused on the Fed's "Beige Book", due at 2:00 p.m. ET, for a snapshot of the U.S. economy, ahead of the keenly awaited inflation data scheduled for next week and the Fed's policy decision on Sept. 20.
Traders' odds for a pause in interest rate hikes in the central bank's September meeting remained intact at 93%, with bets on a pause in November at 56.8%, according to the CME FedWatch Tool.
At 8:31 a.m. ET, Dow e-minis 1YMcv1 were down 81 points, or 0.23%, S&P 500 e-minis EScv1 were down 11 points, or 0.24%, and Nasdaq 100 e-minis NQcv1 were down 47 points, or 0.3%.
Shares of AppleAAPL.O slipped 0.7% before the bell as a report said China had ordered officials at central government agencies to not use iPhones and other foreign-branded devices for work, or bring them into their offices.
Shares of Alaska Air Group ALK.N, Southwest Airlines LUV.N and United Airlines UAL.O fell between 0.3% and 3.8% after the three airlines warned of higher fuel costs in the third quarter due to a jump in crude prices.
American Airlines AAL.O and Delta Air Lines DAL.N declined about 1% each.
GitlabGTLB.O gained 5.9% after the software coding platform posted a surprise profit for the second quarter.
Shares of RokuROKU.O climbed 9.3% after the video-streaming company said on Wednesday it would reduce its workforce by about 10% and limit new hiring.
General MillsGIS.N rose 0.7% after the Cheerios cereals-maker reaffirmed its financial targets for 2024.
(Reporting by Shristi Achar A and Amruta Khandekar in Bengaluru Editing by Vinay Dwivedi)
((Shristi.AcharA@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 Airlines AAL.O and Delta Air Lines DAL.N declined about 1% each. By Shristi Achar A and Amruta Khandekar Sept 6 (Reuters) - Wall Street was set to open lower on Wednesday as concerns about sticky inflation kept investors on edge ahead of key data, including the Federal Reserve's report on the U.S. economy, which could help determine the bank's interest rate path. A rise in Treasury yields and oil prices had pushed stocks lower on Tuesday as signs of persistent inflationary pressures tempered expectations of a less hawkish Federal Reserve.
|
American Airlines AAL.O and Delta Air Lines DAL.N declined about 1% each. By Shristi Achar A and Amruta Khandekar Sept 6 (Reuters) - Wall Street was set to open lower on Wednesday as concerns about sticky inflation kept investors on edge ahead of key data, including the Federal Reserve's report on the U.S. economy, which could help determine the bank's interest rate path. Investors now await a slew of fresh economic data due later in the day, including the S&P Global final U.S. composite Purchasing Managers' Index (PMI) and the ISM non-manufacturing PMI for hints on the state of the economy.
|
American Airlines AAL.O and Delta Air Lines DAL.N declined about 1% each. By Shristi Achar A and Amruta Khandekar Sept 6 (Reuters) - Wall Street was set to open lower on Wednesday as concerns about sticky inflation kept investors on edge ahead of key data, including the Federal Reserve's report on the U.S. economy, which could help determine the bank's interest rate path. Investors now await a slew of fresh economic data due later in the day, including the S&P Global final U.S. composite Purchasing Managers' Index (PMI) and the ISM non-manufacturing PMI for hints on the state of the economy.
|
American Airlines AAL.O and Delta Air Lines DAL.N declined about 1% each. By Shristi Achar A and Amruta Khandekar Sept 6 (Reuters) - Wall Street was set to open lower on Wednesday as concerns about sticky inflation kept investors on edge ahead of key data, including the Federal Reserve's report on the U.S. economy, which could help determine the bank's interest rate path. Investors now await a slew of fresh economic data due later in the day, including the S&P Global final U.S. composite Purchasing Managers' Index (PMI) and the ISM non-manufacturing PMI for hints on the state of the economy.
|
2289.0
|
2023-09-05 00:00:00 UTC
|
Notable Tuesday Option Activity: OC, AAL, IDT
|
AAL
|
https://www.nasdaq.com/articles/notable-tuesday-option-activity%3A-oc-aal-idt
|
nan
|
nan
|
Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Owens Corning (Symbol: OC), where a total volume of 3,273 contracts has been traded thus far today, a contract volume which is representative of approximately 327,300 underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 53.2% of OC's average daily trading volume over the past month, of 614,730 shares. Particularly high volume was seen for the $155 strike call option expiring October 20, 2023, with 1,133 contracts trading so far today, representing approximately 113,300 underlying shares of OC. Below is a chart showing OC's trailing twelve month trading history, with the $155 strike highlighted in orange:
American Airlines Group Inc (Symbol: AAL) saw options trading volume of 107,504 contracts, representing approximately 10.8 million underlying shares or approximately 53.1% of AAL's average daily trading volume over the past month, of 20.2 million shares. Particularly high volume was seen for the $10 strike put option expiring June 21, 2024, with 15,026 contracts trading so far today, representing approximately 1.5 million underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $10 strike highlighted in orange:
And IDT Corp (Symbol: IDT) saw options trading volume of 498 contracts, representing approximately 49,800 underlying shares or approximately 52.5% of IDT's average daily trading volume over the past month, of 94,930 shares. Particularly high volume was seen for the $24 strike call option expiring September 15, 2023, with 235 contracts trading so far today, representing approximately 23,500 underlying shares of IDT. Below is a chart showing IDT's trailing twelve month trading history, with the $24 strike highlighted in orange:
For the various different available expirations for OC options, AAL options, or IDT options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
Also see:
BANR Next Dividend Date
ACIW Insider Buying
JAMF Average Annual Return
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 June 21, 2024, with 15,026 contracts trading so far today, representing approximately 1.5 million underlying shares of AAL. Below is a chart showing OC's trailing twelve month trading history, with the $155 strike highlighted in orange: American Airlines Group Inc (Symbol: AAL) saw options trading volume of 107,504 contracts, representing approximately 10.8 million underlying shares or approximately 53.1% of AAL's average daily trading volume over the past month, of 20.2 million shares. Below is a chart showing AAL's trailing twelve month trading history, with the $10 strike highlighted in orange: And IDT Corp (Symbol: IDT) saw options trading volume of 498 contracts, representing approximately 49,800 underlying shares or approximately 52.5% of IDT's average daily trading volume over the past month, of 94,930 shares.
|
Below is a chart showing OC's trailing twelve month trading history, with the $155 strike highlighted in orange: American Airlines Group Inc (Symbol: AAL) saw options trading volume of 107,504 contracts, representing approximately 10.8 million underlying shares or approximately 53.1% of AAL's average daily trading volume over the past month, of 20.2 million shares. Particularly high volume was seen for the $10 strike put option expiring June 21, 2024, with 15,026 contracts trading so far today, representing approximately 1.5 million underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $10 strike highlighted in orange: And IDT Corp (Symbol: IDT) saw options trading volume of 498 contracts, representing approximately 49,800 underlying shares or approximately 52.5% of IDT's average daily trading volume over the past month, of 94,930 shares.
|
Below is a chart showing OC's trailing twelve month trading history, with the $155 strike highlighted in orange: American Airlines Group Inc (Symbol: AAL) saw options trading volume of 107,504 contracts, representing approximately 10.8 million underlying shares or approximately 53.1% of AAL's average daily trading volume over the past month, of 20.2 million shares. Below is a chart showing AAL's trailing twelve month trading history, with the $10 strike highlighted in orange: And IDT Corp (Symbol: IDT) saw options trading volume of 498 contracts, representing approximately 49,800 underlying shares or approximately 52.5% of IDT's average daily trading volume over the past month, of 94,930 shares. Particularly high volume was seen for the $10 strike put option expiring June 21, 2024, with 15,026 contracts trading so far today, representing approximately 1.5 million underlying shares of AAL.
|
Below is a chart showing OC's trailing twelve month trading history, with the $155 strike highlighted in orange: American Airlines Group Inc (Symbol: AAL) saw options trading volume of 107,504 contracts, representing approximately 10.8 million underlying shares or approximately 53.1% of AAL's average daily trading volume over the past month, of 20.2 million shares. Below is a chart showing AAL's trailing twelve month trading history, with the $10 strike highlighted in orange: And IDT Corp (Symbol: IDT) saw options trading volume of 498 contracts, representing approximately 49,800 underlying shares or approximately 52.5% of IDT's average daily trading volume over the past month, of 94,930 shares. Particularly high volume was seen for the $10 strike put option expiring June 21, 2024, with 15,026 contracts trading so far today, representing approximately 1.5 million underlying shares of AAL.
|
2290.0
|
2023-09-05 00:00:00 UTC
|
S.African union plans wage strike at De Beers' Venetia mine
|
AAL
|
https://www.nasdaq.com/articles/s.african-union-plans-wage-strike-at-de-beers-venetia-mine
|
nan
|
nan
|
Sept 5 (Reuters) - South Africa's National Union of Mineworkers (NUM) on Tuesday said it was planning to strike at De Beers' Venetia mine after wage talks broke down, potentially disrupting operations at the diamond giant's new $2.3 billion underground facility.
NUM, South Africa's biggest mineworker union, said its members were demanding a 9% wage hike, but Anglo American Plc AAL.L unit De Beers was offering a 6% increase.
"The NUM can confirm that the four-month wage negotiations with the world's leading diamond company De Beers have collapsed and a dispute has been declared at the Commission for Conciliation, Mediation and Arbitration (CCMA)," NUM said in a statement.
The CCMA is a South African statutory body which mediates and certifies outcomes of labour disputes.
NUM did not say when it intends to begin the strike, but said it was currently working on picketing rules with the CCMA, while mobilising its "more than 1,500 members, preparing them for a protected indefinite strike."
South Africa's labour laws require workers to give a 48 hour notice before embarking on a strike.
De Beers was not immediately available to comment.
In July, De Beers started production from the new $2.3 billion underground mine at Venetia after stopping 30-year open pit mining operations in December 2022.
De Beers says the Venetia underground mine will produce around 4 million carats of diamonds annually, the equivalent of 12% of its forecast group output for 2023.
(Reporting by Nelson Banya, Editing by Louise Heavens)
((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.
|
NUM, South Africa's biggest mineworker union, said its members were demanding a 9% wage hike, but Anglo American Plc AAL.L unit De Beers was offering a 6% increase. Sept 5 (Reuters) - South Africa's National Union of Mineworkers (NUM) on Tuesday said it was planning to strike at De Beers' Venetia mine after wage talks broke down, potentially disrupting operations at the diamond giant's new $2.3 billion underground facility. De Beers says the Venetia underground mine will produce around 4 million carats of diamonds annually, the equivalent of 12% of its forecast group output for 2023.
|
NUM, South Africa's biggest mineworker union, said its members were demanding a 9% wage hike, but Anglo American Plc AAL.L unit De Beers was offering a 6% increase. Sept 5 (Reuters) - South Africa's National Union of Mineworkers (NUM) on Tuesday said it was planning to strike at De Beers' Venetia mine after wage talks broke down, potentially disrupting operations at the diamond giant's new $2.3 billion underground facility. De Beers says the Venetia underground mine will produce around 4 million carats of diamonds annually, the equivalent of 12% of its forecast group output for 2023.
|
NUM, South Africa's biggest mineworker union, said its members were demanding a 9% wage hike, but Anglo American Plc AAL.L unit De Beers was offering a 6% increase. Sept 5 (Reuters) - South Africa's National Union of Mineworkers (NUM) on Tuesday said it was planning to strike at De Beers' Venetia mine after wage talks broke down, potentially disrupting operations at the diamond giant's new $2.3 billion underground facility. "The NUM can confirm that the four-month wage negotiations with the world's leading diamond company De Beers have collapsed and a dispute has been declared at the Commission for Conciliation, Mediation and Arbitration (CCMA)," NUM said in a statement.
|
NUM, South Africa's biggest mineworker union, said its members were demanding a 9% wage hike, but Anglo American Plc AAL.L unit De Beers was offering a 6% increase. Sept 5 (Reuters) - South Africa's National Union of Mineworkers (NUM) on Tuesday said it was planning to strike at De Beers' Venetia mine after wage talks broke down, potentially disrupting operations at the diamond giant's new $2.3 billion underground facility. "The NUM can confirm that the four-month wage negotiations with the world's leading diamond company De Beers have collapsed and a dispute has been declared at the Commission for Conciliation, Mediation and Arbitration (CCMA)," NUM said in a statement.
|
2291.0
|
2023-09-01 00:00:00 UTC
|
Why American Airlines Stock Fell in August
|
AAL
|
https://www.nasdaq.com/articles/why-american-airlines-stock-fell-in-august
|
nan
|
nan
|
What happened
American Airlines Group (NASDAQ: AAL) made peace with its pilots union and avoided a potential work disruption. But the ailrine paid a steep price to win that peace.
Shares of American fell 12.1% in August, according to data provided by S&P Global Market Intelligence, on concerns that costs are going up at the same time that demand might be heading in the opposite direction.
So what
American and other airline stocks have recovered somewhat from the pandemic, but the industry in recent months has paid a price for that increase in demand. With the airlines short of qualified pilots and flight attendants after offering early retirements amid the pandemic, the unions have been in a strong position as one airline after another has entered into negotiations.
American got its deal with its pilots mid-month. Factoring in increases to retirement contributions pilot compensation rates will rise by more than 46% during the contract's duration. All in, American pilots will receive about $9.6 billion in additional value compared to the old arrangement through August 2027, when the deal becomes amendable.
The airline has struggled with labor harmony in recent years, and the deal is a positive in that it reduces the risk of labor strife. But it also raises operational costs at a time when domestic booking momentum appears to be slowing.
Historically, airlines have performed poorly during periods of rising inflation and slowing economic growth because flights tend to be a luxury item. So far, the industry has largely avoided issues this time around due in part to pent-up demand for travel following the pandemic. But if conditions turn south from here it could end up that American signed its new deal with pilots right at the peak, which could crimp earnings until the economy recovers.
Now what
American has a lot of issues to juggle right now. The company's alliance with JetBlue Airways to round out its service in the northeast is being unwound due to regulatory concerns, leaving a gap in its network. It does not yet have a new deal with its flight attendants, and late in the month the group voted in favor of authorizing a strike if the two sides can't reach a compromise.
Add in the concerns about the macroeconomic environment, and investors are rightly concluding that there is a lot that could go wrong with American right now. The stock could have trouble regaining altitude until some of these headwinds clear.
10 stocks we like better than American Airlines 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 American Airlines 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 August 28, 2023
Lou Whiteman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. 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.
|
What happened American Airlines Group (NASDAQ: AAL) made peace with its pilots union and avoided a potential work disruption. Shares of American fell 12.1% in August, according to data provided by S&P Global Market Intelligence, on concerns that costs are going up at the same time that demand might be heading in the opposite direction. It does not yet have a new deal with its flight attendants, and late in the month the group voted in favor of authorizing a strike if the two sides can't reach a compromise.
|
What happened American Airlines Group (NASDAQ: AAL) made peace with its pilots union and avoided a potential work disruption. So what American and other airline stocks have recovered somewhat from the pandemic, but the industry in recent months has paid a price for that increase in demand. * They just revealed what they believe are the ten best stocks for investors to buy right now... and American Airlines Group wasn't one of them!
|
What happened American Airlines Group (NASDAQ: AAL) made peace with its pilots union and avoided a potential work disruption. So what American and other airline stocks have recovered somewhat from the pandemic, but the industry in recent months has paid a price for that increase in demand. 10 stocks we like better than American Airlines Group When our analyst team has a stock tip, it can pay to listen.
|
What happened American Airlines Group (NASDAQ: AAL) made peace with its pilots union and avoided a potential work disruption. So what American and other airline stocks have recovered somewhat from the pandemic, but the industry in recent months has paid a price for that increase in demand. American got its deal with its pilots mid-month.
|
2292.0
|
2023-09-01 00:00:00 UTC
|
U.S. airlines, travel industry gear up for Labor Day weekend surge
|
AAL
|
https://www.nasdaq.com/articles/u.s.-airlines-travel-industry-gear-up-for-labor-day-weekend-surge
|
nan
|
nan
|
By Priyamvada C
Sept 1 (Reuters) - U.S. airlines and airports have geared up for a busy weekend ahead of the Labor Day holiday as travelers plan to jet off to international locations and cooler destinations.
More than 20 million passengers will fly out of U.S. airports between Thursday and Tuesday, a 14% increase from the same time a year earlier, according to travel booking app Hopper, continuing the boom in international travel in recent months.
The Transportation Security Administration (TSA) expects to screen more than 14 million passengers between Sept. 1 and Sept. 6.
"We anticipate this Labor Day holiday weekend will be busy, with passenger volumes nearly 11% higher than last year—volumes that already exceeded 2019 Labor Day holiday travel volumes," TSA Administrator David Pekoske said in a statement.
U.S. travelers have been flying overseas with greater frequency in recent months, taking advantage of flexible work arrangements, the end of coronavirus testing mandates, and a strong U.S. dollar.
International bookings for flights, hotels, rental cars, and cruises for the Labor Day weekend were up 44% from a year ago, according to travel group AAA, while domestic bookings rose 4% compared with last year.
Travel operators with a larger international footprint have reported strong earnings, with companies ranging from Airbnb to Marriott forecasting strong future demand due to robust global travel and higher room rates.
"U.S. room rates were up 2.5% for the first 26 days in August and we expect similar rate increases year over year for the long weekend," said Jan Freitag, national director of hospitality analytics at CoStar Group.
AAA said Vancouver, Rome, London, Dublin, and Paris were the top five destinations for the long weekend.
Domestic cruise bookings also look strong, up 19% compared with a year earlier, AAA estimated. Airfare for domestic getaways is averaging $226 per ticket, down 11% from last year and 20% lower from the Labor Day weekend in 2019, according to Hopper.
While analysts expect demand to hold up this weekend, hurricane Idalia has wrecked havoc in certain regions in the United States, upending travel plans for thousands.
More than 1,500 flights were delayed on Friday and 60 flights were canceled, according to flight-tracking website Flightaware.com as Hurricane Idalia slammed into the Big Bend region of Florida earlier this week.
(Reporting by Priyamvada C in Bengaluru; Additional reporting by Doyinsola Oladipo in New York; Editing by Vinay Dwivedi)
((Priyamvada.C@thomsonreuters.comhttps://twitter.com/priyamouli1812?lang=en;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
By Priyamvada C Sept 1 (Reuters) - U.S. airlines and airports have geared up for a busy weekend ahead of the Labor Day holiday as travelers plan to jet off to international locations and cooler destinations. U.S. travelers have been flying overseas with greater frequency in recent months, taking advantage of flexible work arrangements, the end of coronavirus testing mandates, and a strong U.S. dollar. While analysts expect demand to hold up this weekend, hurricane Idalia has wrecked havoc in certain regions in the United States, upending travel plans for thousands.
|
By Priyamvada C Sept 1 (Reuters) - U.S. airlines and airports have geared up for a busy weekend ahead of the Labor Day holiday as travelers plan to jet off to international locations and cooler destinations. "We anticipate this Labor Day holiday weekend will be busy, with passenger volumes nearly 11% higher than last year—volumes that already exceeded 2019 Labor Day holiday travel volumes," TSA Administrator David Pekoske said in a statement. Domestic cruise bookings also look strong, up 19% compared with a year earlier, AAA estimated.
|
More than 20 million passengers will fly out of U.S. airports between Thursday and Tuesday, a 14% increase from the same time a year earlier, according to travel booking app Hopper, continuing the boom in international travel in recent months. "We anticipate this Labor Day holiday weekend will be busy, with passenger volumes nearly 11% higher than last year—volumes that already exceeded 2019 Labor Day holiday travel volumes," TSA Administrator David Pekoske said in a statement. International bookings for flights, hotels, rental cars, and cruises for the Labor Day weekend were up 44% from a year ago, according to travel group AAA, while domestic bookings rose 4% compared with last year.
|
More than 20 million passengers will fly out of U.S. airports between Thursday and Tuesday, a 14% increase from the same time a year earlier, according to travel booking app Hopper, continuing the boom in international travel in recent months. "We anticipate this Labor Day holiday weekend will be busy, with passenger volumes nearly 11% higher than last year—volumes that already exceeded 2019 Labor Day holiday travel volumes," TSA Administrator David Pekoske said in a statement. International bookings for flights, hotels, rental cars, and cruises for the Labor Day weekend were up 44% from a year ago, according to travel group AAA, while domestic bookings rose 4% compared with last year.
|
2293.0
|
2023-09-01 00:00:00 UTC
|
Airline Stock Roundup: Fresh Labor Trouble at AAL, Expansion Update From DAL
|
AAL
|
https://www.nasdaq.com/articles/airline-stock-roundup%3A-fresh-labor-trouble-at-aal-expansion-update-from-dal
|
nan
|
nan
|
In the past week, American Airlines’ AAL flight attendants voted to give their union, Association of Professional Flight Attendants (APFA), the power to call a strike if a satisfactory agreement pertaining to their pay is not reached with management.
Meanwhile, Delta Air Lines’ DAL management has decided to start a nonstop service (on a daily basis) between Tokyo International Airport or HND and Honolulu International Airport from Oct 28, 2023. United Airlines UAL expects the upcoming Labor Day weekend to be the busiest one in its history as air travel demand has hit the roof in the post-COVID scenario.
Recap of the Past Week’s Most Important Stories
1. Only a few days after AAL’s pilots, represented by the Allied Pilots Association, approved a four-year deal pertaining to wage increases, the company has landed in a fresh labor crisis. This time, 99.47% of the APFA covered flight attendants voted for a strike in the event of a contract not being agreed upon. In the event of AAL’s management and APFA failing to come to an agreement through federal mediation, the latter can request to be released into a 30-day cooling-off period. Following the expiry of that period, the attendants may commence a strike. Even though flight attendants have voted in favor of a strike, it is highly doubtful whether the same will materialize, as the law makes it extremely difficult.
AAL, currently carrying a Zacks Rank #3 (Hold), was also in the news recently when management warned of higher non-fuel unit costs in third-quarter 2023, due to the deal with pilots. The story was covered in detail in the previous week’s write up.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
2. Delta intends to operate flights on the Haneda-Honolulu route by using the Boeing 767-300ER jets, which are equipped with all modern facilities. We remind investors that in 2020, DAL moved its entire Tokyo operations from Narita Airport to Haneda. Per DAL’s managing director and president - Japan, Victor Osumi, “As travel demand gradually recovers in Japan, we decided to add the new Honolulu service to our HND network."
3. Anticipating an extremely busy Labor Day holiday period, UAL’s management expects nearly 2.8 million passengers to travel by its flights in the Aug 31-Sep 5 period. To meet the anticipated demand swell over the Aug 31-Sep 5 period, AAL aims to operate approximately 32,000 flights during this period. The carrier expects that nearly 3.5 million passengers will travel by its flights in the above timeframe.
Driven by the travel surge, the Transportation Security Administration anticipates screening more than 14 million passengers in the Sep 1-Sep 6 period, despite the likely disruptions caused by tropical storm Idalia. Per TSA administrator David Pekoske, “We anticipate this Labor Day holiday weekend will be busy, with passenger volumes nearly 11% higher than last year, volumes that already exceeded 2019 Labor Day holiday travel volumes.”
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 the majority of airline stocks traded in the green in the past week. However, the gains were muted in nature. As a result, the NYSE ARCA Airline Index improved marginally over the period to $61.83. Over the course of the past six months, the sector tracker has increased 1.9%.
What's Next in the Airline Space?
Ryanair Holdings RYAAY is likely to unveil its August traffic report in the coming days. Akin to the past few months, upbeat passenger volume is expected to boost traffic in August for this Irish carrier.
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 a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ 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
Ryanair Holdings PLC (RYAAY) : Free Stock Analysis 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.
|
AAL, currently carrying a Zacks Rank #3 (Hold), was also in the news recently when management warned of higher non-fuel unit costs in third-quarter 2023, due to the deal with pilots. In the past week, American Airlines’ AAL flight attendants voted to give their union, Association of Professional Flight Attendants (APFA), the power to call a strike if a satisfactory agreement pertaining to their pay is not reached with management. Only a few days after AAL’s pilots, represented by the Allied Pilots Association, approved a four-year deal pertaining to wage increases, the company has landed in a fresh labor crisis.
|
Click to get this free report Ryanair Holdings PLC (RYAAY) : Free Stock Analysis 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. In the past week, American Airlines’ AAL flight attendants voted to give their union, Association of Professional Flight Attendants (APFA), the power to call a strike if a satisfactory agreement pertaining to their pay is not reached with management. Only a few days after AAL’s pilots, represented by the Allied Pilots Association, approved a four-year deal pertaining to wage increases, the company has landed in a fresh labor crisis.
|
In the past week, American Airlines’ AAL flight attendants voted to give their union, Association of Professional Flight Attendants (APFA), the power to call a strike if a satisfactory agreement pertaining to their pay is not reached with management. Click to get this free report Ryanair Holdings PLC (RYAAY) : Free Stock Analysis 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. Only a few days after AAL’s pilots, represented by the Allied Pilots Association, approved a four-year deal pertaining to wage increases, the company has landed in a fresh labor crisis.
|
In the past week, American Airlines’ AAL flight attendants voted to give their union, Association of Professional Flight Attendants (APFA), the power to call a strike if a satisfactory agreement pertaining to their pay is not reached with management. Only a few days after AAL’s pilots, represented by the Allied Pilots Association, approved a four-year deal pertaining to wage increases, the company has landed in a fresh labor crisis. In the event of AAL’s management and APFA failing to come to an agreement through federal mediation, the latter can request to be released into a 30-day cooling-off period.
|
2294.0
|
2023-09-01 00:00:00 UTC
|
Airline Stock Roundup: Fresh Labor Trouble at AAL, Expansion Update From DAL
|
AAL
|
https://www.nasdaq.com/articles/airline-stock-roundup%3A-fresh-labor-trouble-at-aal-expansion-update-from-dal-0
|
nan
|
nan
|
In the past week, American Airlines’ AAL flight attendants voted to give their union, Association of Professional Flight Attendants (APFA), the power to call a strike if a satisfactory agreement pertaining to their pay is not reached with management.
Meanwhile, Delta Air Lines’ DAL management has decided to start a nonstop service (on a daily basis) between Tokyo International Airport or HND and Honolulu International Airport from Oct 28, 2023. United Airlines UAL expects the upcoming Labor Day weekend to be the busiest one in its history as air travel demand has hit the roof in the post-COVID scenario.
Recap of the Past Week’s Most Important Stories
1. Only a few days after AAL’s pilots, represented by the Allied Pilots Association, approved a four-year deal pertaining to wage increases, the company has landed in a fresh labor crisis. This time, 99.47% of the APFA covered flight attendants voted for a strike in the event of a contract not being agreed upon. In the event of AAL’s management and APFA failing to come to an agreement through federal mediation, the latter can request to be released into a 30-day cooling-off period. Following the expiry of that period, the attendants may commence a strike. Even though flight attendants have voted in favor of a strike, it is highly doubtful whether the same will materialize, as the law makes it extremely difficult.
AAL, currently carrying a Zacks Rank #3 (Hold), was also in the news recently when management warned of higher non-fuel unit costs in third-quarter 2023, due to the deal with pilots. The story was covered in detail in the previous week’s write up.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
2. Delta intends to operate flights on the Haneda-Honolulu route by using the Boeing 767-300ER jets, which are equipped with all modern facilities. We remind investors that in 2020, DAL moved its entire Tokyo operations from Narita Airport to Haneda. Per DAL’s managing director and president - Japan, Victor Osumi, “As travel demand gradually recovers in Japan, we decided to add the new Honolulu service to our HND network."
3. Anticipating an extremely busy Labor Day holiday period, UAL’s management expects nearly 2.8 million passengers to travel by its flights in the Aug 31-Sep 5 period. To meet the anticipated demand swell over the Aug 31-Sep 5 period, AAL aims to operate approximately 32,000 flights during this period. The carrier expects that nearly 3.5 million passengers will travel by its flights in the above timeframe.
Driven by the travel surge, the Transportation Security Administration anticipates screening more than 14 million passengers in the Sep 1-Sep 6 period, despite the likely disruptions caused by tropical storm Idalia. Per TSA administrator David Pekoske, “We anticipate this Labor Day holiday weekend will be busy, with passenger volumes nearly 11% higher than last year, volumes that already exceeded 2019 Labor Day holiday travel volumes.”
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 the majority of airline stocks traded in the green in the past week. However, the gains were muted in nature. As a result, the NYSE ARCA Airline Index improved marginally over the period to $61.83. Over the course of the past six months, the sector tracker has increased 1.9%.
What's Next in the Airline Space?
Ryanair Holdings RYAAY is likely to unveil its August traffic report in the coming days. Akin to the past few months, upbeat passenger volume is expected to boost traffic in August for this Irish carrier.
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 a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ 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
Ryanair Holdings PLC (RYAAY) : Free Stock Analysis 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.
|
AAL, currently carrying a Zacks Rank #3 (Hold), was also in the news recently when management warned of higher non-fuel unit costs in third-quarter 2023, due to the deal with pilots. In the past week, American Airlines’ AAL flight attendants voted to give their union, Association of Professional Flight Attendants (APFA), the power to call a strike if a satisfactory agreement pertaining to their pay is not reached with management. Only a few days after AAL’s pilots, represented by the Allied Pilots Association, approved a four-year deal pertaining to wage increases, the company has landed in a fresh labor crisis.
|
Click to get this free report Ryanair Holdings PLC (RYAAY) : Free Stock Analysis 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. In the past week, American Airlines’ AAL flight attendants voted to give their union, Association of Professional Flight Attendants (APFA), the power to call a strike if a satisfactory agreement pertaining to their pay is not reached with management. Only a few days after AAL’s pilots, represented by the Allied Pilots Association, approved a four-year deal pertaining to wage increases, the company has landed in a fresh labor crisis.
|
In the past week, American Airlines’ AAL flight attendants voted to give their union, Association of Professional Flight Attendants (APFA), the power to call a strike if a satisfactory agreement pertaining to their pay is not reached with management. Click to get this free report Ryanair Holdings PLC (RYAAY) : Free Stock Analysis 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. Only a few days after AAL’s pilots, represented by the Allied Pilots Association, approved a four-year deal pertaining to wage increases, the company has landed in a fresh labor crisis.
|
In the past week, American Airlines’ AAL flight attendants voted to give their union, Association of Professional Flight Attendants (APFA), the power to call a strike if a satisfactory agreement pertaining to their pay is not reached with management. Only a few days after AAL’s pilots, represented by the Allied Pilots Association, approved a four-year deal pertaining to wage increases, the company has landed in a fresh labor crisis. In the event of AAL’s management and APFA failing to come to an agreement through federal mediation, the latter can request to be released into a 30-day cooling-off period.
|
2295.0
|
2023-09-01 00:00:00 UTC
|
Comfort Systems USA and DICK'S Sporting Goods have been highlighted as Zacks Bull and Bear of the Day
|
AAL
|
https://www.nasdaq.com/articles/comfort-systems-usa-and-dicks-sporting-goods-have-been-highlighted-as-zacks-bull-and-bear
|
nan
|
nan
|
For Immediate Release
Chicago, IL – September 1, 2023 – Zacks Equity Research shares Comfort Systems USA FIX as the Bull of the Day and DICK'S Sporting Goods Inc. DKS as the Bear of the Day. In addition, Zacks Equity Research provides analysis on United Airlines UAL, American Airlines AAL and Delta Air Lines DAL.
Here is a synopsis of all five stocks:
Bull of the Day:
Comfort Systems USA provides comprehensive heating, ventilation, and air conditioning installation, maintenance, repair, and replacement services.
The company performs most of its services within manufacturing plants, office buildings, retail centers, apartment complexes, and healthcare, education, and government facilities.
Analysts have taken a bullish stance on the company's earnings outlook, landing the stock into the highly-coveted Zacks Rank #1 (Strong Buy).
The company resides within the Zacks Building Products – Air Conditioner and Heating industry, currently ranked in the top 2% of all Zacks industries due to positive earnings estimate revisions.
As many know, roughly half of a stock's movement can be attributed to its group, helping to clarify the importance of targeting industries seeing bright outlooks.
Aside from the improved earnings outlook and favorable industry standing, let's take a closer look at a few other traits of Comfort Systems USA.
Comfort Systems USA
The company sports a solid growth profile, with Zacks Consensus Estimates suggesting 44% EPS growth on 21% higher revenues in its current year. And peeking ahead to FY24, expectations allude to a further 15% improvement in earnings paired with a 15% revenue bump. FIX carries a Style Score of "B" for Growth.
Income-focused investors could be attracted to FIX also, with shares currently yielding a respectable 0.5% annually. While the yield may be on the lower end, the company's 15% five-year annualized dividend growth rate helps bridge the gap.
In addition, the company has been a stellar earnings performer, exceeding the Zacks Consensus EPS Estimate by an average of more than 20% across its last four releases. Just in its latest release, Comfort Systems USA posted an 18% EPS beat and reported revenue 7% above expectations.
The company's top line growth has remained steady and accelerated in recent quarters.
Perhaps to the surprise of some, shares have long-time outperformed the general market in a big way, annualizing a sizable 29% return over the last decade vs. the S&P 500's 12.8%. FIX shares have seen bullish activity following each of its previous three quarterly releases.
Bottom Line
Investors can implement a stellar strategy to find expected winners by taking advantage of the Zacks Rank – one of the most powerful market tools that provides a massive edge.
The top 5% of all stocks receive the highly coveted Zacks Rank #1 (Strong Buy). These stocks should outperform the market more than any other rank.
Comfort Systems USA would be an excellent stock for investors to consider, as displayed by its Zack Rank #1 (Strong Buy).
Bear of the Day:
DICK'S Sporting Goods Inc. is a significant omnichannel sporting goods retailer that offers athletic shoes, apparel, accessories, and a broad selection of outdoor and athletic equipment for team sports, fitness, camping, fishing, tennis, golf, water sports, and more.
Analysts have slashed their earnings expectations as of late, pushing the stock down into an unfavorable Zacks Rank #5 (Strong Sell).
Let's take a closer look at a few other characteristics of DKS.
DICK'S Sporting Goods
The company's latest quarterly report disappointed investors, with DKS falling short of the Zacks Consensus EPS Estimate by 25% and delivering a fractional revenue surprise. Earnings declined 24% year-over-year, whereas revenue climbed 3.6% from the same period last year.
The company's profitability picture was massively impacted by elevated inventory shrink, a phenomenon DKS says many retailers are currently facing. And to top it off, DKS lowered its FY23 EPS outlook, causing shares to plummet post-earnings.
Shares now yield 3.5% annually following the sell-off, with a payout ratio sitting at 34% of the company's earnings. It's worth noting that the company has been committed to increasingly rewarding its shareholders, sporting a 25% five-year annualized dividend growth rate.
In addition, DKS shares presently trade at a 9.4X forward earnings multiple (F1), below the 10.8X five-year median and the respective Zacks industry average. Shares have traded as high as 12.5X in 2023.
Bottom Line
Negative earnings estimate revisions from analysts and a recent negative quarterly print paint a challenging picture for the company's shares in the near term.
DICK'S Sporting Goods is a Zacks Rank #5 (Strong Sell), indicating that analysts have taken a bearish stance on the company's earnings outlook.
For those seeking strong stocks, a great idea would be to focus on stocks carrying a Zacks Rank #1 (Strong Buy) or a Zacks Rank #2 (Buy) – these stocks sport a notably stronger earnings outlook paired with the potential to deliver explosive gains in the near term.
Additional content:
Buy Labor Day Weekend Await U.S. Airlines: 3 Stocks to Watch
It is a well-documented fact that air travel demand has bounced back very strongly from the pandemic lows. Driven by the buoyant passenger volumes in the current summer season, which has been the busiest one ever, the upcoming Labor Day holiday period is expected to be a very busy one for U.S. airlines.
The bullish expectation of the Transportation Security Administration or TSA pertaining to traffic volumes during the Labor Day holiday weekend further highlights the encouraging scenario. Therefore, we believe that investors interested in the industry would do well to keep U.S. airline stocks like United Airlines, American Airlines and Delta Air Lines on their radar.
With people taking to the skies in a big way in the post-COVID period, the airline industry, one of the hardest hit corners in the pandemic peak, is currently in good shape. Driven by the concept of 'Revenge travel', a term emanating from the prolonged periods of lockdown, people remain eager to undertake a flight despite headwinds like flight disruptions caused by labor shortages. Revenge travel highlights a strong desire to travel in response to the monotony and exhaustion of life caused by the COVID-19-induced lockdown.
Driven by the travel surge, the Federal Aviation Administration expects the upcoming Labor Day holiday weekend to be the third busiest one in 2023 so far, after the Juneteenth weekend, which was inclusive of Father's Day, and the break for Presidents Day.
The TSA's Projection
The TSA anticipates screening more than 14 million passengers in the Sep 1-Sep 6 period, despite the likely disruptions caused by the tropical storm Idalia. The busiest day during the period is likely to be Sep 1. On that day, TSA expects to screen more than 2.7 million travelers passing through security checkpoints.
Per TSA administrator David Pekoske, "We anticipate this Labor Day holiday weekend will be busy, with passenger volumes nearly 11% higher than last year, volumes that already exceeded 2019 Labor Day holiday travel volumes."
Highlighting the upbeat air-travel demand scenario, the TSA stated that it has screened approximately 227.5 million passengers since the Memorial Day weekend. This translates into an average of 2.5 million per day. To aid travel, many U.S. airlines are offering low fares for passengers who book their travel by Labor Day.
Given this rosy scenario, we have highlighted three airline stocks, that investors should keep tabs on.
Our Choices
United Airlines: UAL is seeing a steady recovery in domestic and international air travel demand. Anticipating to be extremely busy over the Labor Day holiday period, UAL's management expects that nearly 2.8 million passengers will travel by its flights in the Aug 31-Sep 5 period.
Riding on the buoyant air traffic scenario, UAL shares have gained 32.9% year to date. The company surpassed the Zacks Consensus Estimate for earnings in three of the last four quarters and missed the mark on the other occasion. The average beat was 17.2%. UAL currently sports a Zacks Rank #1 (Strong Buy).
You can see the complete list of today's Zacks #1 Rank stocks here
American Airlines: The company, currently carrying a Zacks Rank #3 (Hold), is benefiting from an improvement in air travel demand. To meet the anticipated demand swell over the Aug 31-Sep 5 period, AAL aims to operate approximately 32,000 flights during this period. The carrier expects that nearly 3.5 million passengers will travel by its flights in the above timeframe.
AAL surpassed the Zacks Consensus Estimate for earnings in all the last four quarters, with an average of 19.2%. AAL shares have gained 16.1% year to date.
Delta Air Lines: The company, currently carrying a Zacks Rank #3, is benefiting from an improvement in air travel demand. The buoyant air-travel demand scenario is likely to aid Delta in attracting significant traffic during the Labor Day holiday period.
DAL surpassed the Zacks Consensus Estimate for earnings in two of the last four quarters and missed the mark on the other two occasions. The average beat was 2.1%. DAL shares have gained 31.5% year to date.
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 >>
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
https://www.zacks.com
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
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/performancefor information about the performance numbers displayed in this press release.
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
United Airlines Holdings Inc (UAL) : Free Stock Analysis Report
DICK'S Sporting Goods, Inc. (DKS) : Free Stock Analysis Report
American Airlines Group Inc. (AAL) : Free Stock Analysis Report
Comfort Systems USA, Inc. (FIX) : 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.
|
In addition, Zacks Equity Research provides analysis on United Airlines UAL, American Airlines AAL and Delta Air Lines DAL. To meet the anticipated demand swell over the Aug 31-Sep 5 period, AAL aims to operate approximately 32,000 flights during this period. AAL surpassed the Zacks Consensus Estimate for earnings in all the last four quarters, with an average of 19.2%.
|
In addition, Zacks Equity Research provides analysis on United Airlines UAL, American Airlines AAL and Delta Air Lines DAL. Click to get this free report Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report United Airlines Holdings Inc (UAL) : Free Stock Analysis Report DICK'S Sporting Goods, Inc. (DKS) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Comfort Systems USA, Inc. (FIX) : Free Stock Analysis Report To read this article on Zacks.com click here. To meet the anticipated demand swell over the Aug 31-Sep 5 period, AAL aims to operate approximately 32,000 flights during this 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 DICK'S Sporting Goods, Inc. (DKS) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Comfort Systems USA, Inc. (FIX) : Free Stock Analysis Report To read this article on Zacks.com click here. In addition, Zacks Equity Research provides analysis on United Airlines UAL, American Airlines AAL and Delta Air Lines DAL. To meet the anticipated demand swell over the Aug 31-Sep 5 period, AAL aims to operate approximately 32,000 flights during this period.
|
AAL surpassed the Zacks Consensus Estimate for earnings in all the last four quarters, with an average of 19.2%. In addition, Zacks Equity Research provides analysis on United Airlines UAL, American Airlines AAL and Delta Air Lines DAL. To meet the anticipated demand swell over the Aug 31-Sep 5 period, AAL aims to operate approximately 32,000 flights during this period.
|
2296.0
|
2023-08-31 00:00:00 UTC
|
American Airlines (AAL) Dips More Than Broader Markets: What You Should Know
|
AAL
|
https://www.nasdaq.com/articles/american-airlines-aal-dips-more-than-broader-markets%3A-what-you-should-know-10
|
nan
|
nan
|
In the latest trading session, American Airlines (AAL) closed at $14.73, marking a -0.27% move from the previous day. This change lagged the S&P 500's daily loss of 0.16%. Elsewhere, the Dow lost 0.48%, while the tech-heavy Nasdaq added 0.11%.
Heading into today, shares of the world's largest airline had lost 7.4% over the past month, lagging the Transportation sector's loss of 4.88% and the S&P 500's loss of 1.25% in that time.
Investors will be hoping for strength from American Airlines as it approaches its next earnings release. The company is expected to report EPS of $0.75, up 8.7% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $13.59 billion, up 0.93% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.18 per share and revenue of $53.11 billion, which would represent changes of +536% and +8.46%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for American Airlines. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 6.13% lower. American Airlines is currently a Zacks Rank #3 (Hold).
Digging into valuation, American Airlines currently has a Forward P/E ratio of 4.64. This represents a discount compared to its industry's average Forward P/E of 8.74.
The Transportation - Airline industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 77, which puts it in the top 31% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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.
|
In the latest trading session, American Airlines (AAL) closed at $14.73, marking a -0.27% move from the previous day. Click to get this free report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
|
In the latest trading session, American Airlines (AAL) closed at $14.73, marking a -0.27% move from the previous day. 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 Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups.
|
Click to get this free report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. In the latest trading session, American Airlines (AAL) closed at $14.73, marking a -0.27% move from the previous day. This industry currently has a Zacks Industry Rank of 77, which puts it in the top 31% of all 250+ industries.
|
In the latest trading session, American Airlines (AAL) closed at $14.73, marking a -0.27% move from the previous day. Click to get this free report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines is currently a Zacks Rank #3 (Hold).
|
2297.0
|
2023-08-31 00:00:00 UTC
|
AAL October 13th Options Begin Trading
|
AAL
|
https://www.nasdaq.com/articles/aal-october-13th-options-begin-trading
|
nan
|
nan
|
Investors in American Airlines Group Inc (Symbol: AAL) saw new options begin trading today, for the October 13th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new October 13th contracts and identified one put and one call contract of particular interest.
The put contract at the $14.50 strike price has a current bid of 45 cents. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $14.50, but will also collect the premium, putting the cost basis of the shares at $14.05 (before broker commissions). To an investor already interested in purchasing shares of AAL, that could represent an attractive alternative to paying $14.76/share today.
Because the $14.50 strike represents an approximate 2% 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 3.10% return on the cash commitment, or 26.34% 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 $14.50 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $15.00 strike price has a current bid of 54 cents. If an investor was to purchase shares of AAL stock at the current price level of $14.76/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $15.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 5.28% if the stock gets called away at the October 13th 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 $15.00 strike highlighted in red:
Considering the fact that the $15.00 strike represents an approximate 2% 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 3.66% boost of extra return to the investor, or 31.06% 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 $14.76) to be 40%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Top YieldBoost Calls of the S&P 500 »
Also see:
John Paulson Stock Picks
SMMD Options Chain
CMLS YTD Return
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 $15.00 strike highlighted in red: Considering the fact that the $15.00 strike represents an approximate 2% 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 October 13th expiration.
|
Below is a chart showing AAL's trailing twelve month trading history, with the $15.00 strike highlighted in red: Considering the fact that the $15.00 strike represents an approximate 2% 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 October 13th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new October 13th 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 $15.00 strike highlighted in red: Considering the fact that the $15.00 strike represents an approximate 2% 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 October 13th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new October 13th contracts and identified one put and one call contract of particular interest.
|
At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new October 13th 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 $15.00 strike highlighted in red: Considering the fact that the $15.00 strike represents an approximate 2% 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 October 13th expiration.
|
2298.0
|
2023-08-31 00:00:00 UTC
|
American Airlines (AAL) Gets Into Labor Trouble Once Again
|
AAL
|
https://www.nasdaq.com/articles/american-airlines-aal-gets-into-labor-trouble-once-again
|
nan
|
nan
|
American Airlines AAL, like most other airlines in the United States, is being constantly hit by labor crisis. Only a few days after the company’s pilots, represented by the Allied Pilots Association or APA, approved a four-year deal pertaining to wage increase, its flights attendants have voted to give their union, Association of Professional Flight Attendants (APFA), the power to call a strike if needed.
More than 26,000 flight attendants at AAL are represented by the APFA. Highlighting their frustration at a suitable deal not being reached, 99.47% of the APFA covered flight attendants voted for a strike in the event of a contract not being agreed upon.
Per APFA’s national president Julie Hedrick, "Flight attendants are fired up and ready for a contract. They (the company) ignore this strike vote at their peril,", national president of APFA, said in a statement. In the event of AAL’s management and APFA failing to come to an agreement through federal mediation, the latter can request to be released into a 30-day cooling-off period. Following the expiry of that period, the attendants may commence a strike.
Even though flight attendants have voted in favor of a strike, it is highly doubtful whether the same will materialize, as the law makes it extremely difficult. So, negotiations are likely to continue. The union hopes that this strike approval will exert pressure on AAL in ongoing negotiations. Naturally, we expect investors to eagerly wait for further updates on this crucial issue.
With U.S. airlines grappling with labor shortages, the bargaining power of various labor groups has naturally increased as air-travel demand is buoyant, having bounced back very strongly from the pandemic lows. As a result, we are seeing many labor deals being inked in the space. Apart from AAL’s deal with pilots, referred to above, in July, United Airlines’ UAL pilots provisionally agreed on a multi-billion-dollar contract to increase their pay up to 40% over the four-year duration of the contract. In March, Delta Air Lines’ DAL pilots ratified a four-year deal, which made DAL’s pilots eligible for a 34% pay-hike over the next four years.
American Airlines and Delta carry a Zacks Rank #3 (Hold) each while United Airlines currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
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.
|
In the event of AAL’s management and APFA failing to come to an agreement through federal mediation, the latter can request to be released into a 30-day cooling-off period. American Airlines AAL, like most other airlines in the United States, is being constantly hit by labor crisis. More than 26,000 flight attendants at AAL are represented by the APFA.
|
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. American Airlines AAL, like most other airlines in the United States, is being constantly hit by labor crisis. More than 26,000 flight attendants at AAL are represented by the APFA.
|
Apart from AAL’s deal with pilots, referred to above, in July, United Airlines’ UAL pilots provisionally agreed on a multi-billion-dollar contract to increase their pay up to 40% over the four-year duration of the contract. 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. American Airlines AAL, like most other airlines in the United States, is being constantly hit by labor crisis.
|
American Airlines AAL, like most other airlines in the United States, is being constantly hit by labor crisis. More than 26,000 flight attendants at AAL are represented by the APFA. In the event of AAL’s management and APFA failing to come to an agreement through federal mediation, the latter can request to be released into a 30-day cooling-off period.
|
2299.0
|
2023-08-31 00:00:00 UTC
|
Busy Labor Day Weekend Awaits US Airlines: 3 Stocks to Watch
|
AAL
|
https://www.nasdaq.com/articles/busy-labor-day-weekend-awaits-us-airlines%3A-3-stocks-to-watch
|
nan
|
nan
|
It is a well-documented fact that air travel demand has bounced back very strongly from the pandemic lows. Driven by the buoyant passenger volumes in the current summer season, which has been the busiest one ever, the upcoming Labor Day holiday period is expected to be a very busy one for U.S. airlines.
The bullish expectation of the Transportation Security Administration or TSA pertaining to traffic volumes during the Labor Day holiday weekend further highlights 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.
With people taking to the skies in a big way in the post-COVID period, the airline industry, one of the hardest hit corners in the pandemic peak, is currently in good shape. Driven by the concept of ‘Revenge travel’, a term emanating from the prolonged periods of lockdown, people remain eager to undertake a flight despite headwinds like flight disruptions caused by labor shortages. Revenge travel highlights a strong desire to travel in response to the monotony and exhaustion of life caused by the COVID-19-induced lockdown.
Driven by the travel surge, the Federal Aviation Administration expects the upcoming Labor Day holiday weekend to be the third busiest one in 2023 so far, after the Juneteenth weekend, which was inclusive of Father's Day, and the break for Presidents Day.
The TSA’s Projection
The TSA anticipates screening more than 14 million passengers in the Sep 1-Sep 6 period, despite the likely disruptions caused by the tropical storm Idalia. The busiest day during the period is likely to be Sep 1. On that day, TSA expects to screen more than 2.7 million travelers passing through security checkpoints.
Per TSA administrator David Pekoske, “We anticipate this Labor Day holiday weekend will be busy, with passenger volumes nearly 11% higher than last year, volumes that already exceeded 2019 Labor Day holiday travel volumes.”
Highlighting the upbeat air-travel demand scenario, the TSA stated that it has screened approximately 227.5 million passengers since the Memorial Day weekend. This translates into an average of 2.5 million per day. To aid travel, many U.S. airlines are offering low fares for passengers who book their travel by Labor Day.
Given this rosy scenario, we have highlighted three airline stocks, that investors should keep tabs on.
Our Choices
United Airlines: UAL is seeing a steady recovery in domestic and international air travel demand. Anticipating to be extremely busy over the Labor Day holiday period, UAL’s management expects that nearly 2.8 million passengers will travel by its flights in the Aug 31-Sep 5 period.
Riding on the buoyant air traffic scenario, UAL shares have gained 32.9% year to date. The company surpassed the Zacks Consensus Estimate for earnings in three of the last four quarters and missed the mark on the other occasion. The average beat was 17.2%. UAL currently sports a Zacks Rank #1 (Strong Buy).
You can see the complete list of today’s Zacks #1 Rank stocks here
American Airlines: The company, currently carrying a Zacks Rank #3 (Hold), is benefiting from an improvement in air travel demand. To meet the anticipated demand swell over the Aug 31-Sep 5 period, AAL aims to operate approximately 32,000 flights during this period. The carrier expects that nearly 3.5 million passengers will travel by its flights in the above timeframe.
AAL surpassed the Zacks Consensus Estimate for earnings in all the last four quarters, with an average of 19.2%. AAL shares have gained 16.1% year to date.
Delta Air Lines: The company, currently carrying a Zacks Rank #3, is benefiting from an improvement in air travel demand. The buoyant air-travel demand scenario is likely to aid Delta in attracting significant traffic during the Labor Day holiday period.
DAL surpassed the Zacks Consensus Estimate for earnings in two of the last four quarters and missed the mark on the other two occasions. The average beat was 2.1%. DAL shares have gained 31.5% 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
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. To meet the anticipated demand swell over the Aug 31-Sep 5 period, AAL aims to operate approximately 32,000 flights during this period. AAL surpassed the Zacks Consensus Estimate for earnings in all the last four quarters, with an average of 19.2%.
|
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. To meet the anticipated demand swell over the Aug 31-Sep 5 period, AAL aims to operate approximately 32,000 flights during this 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. To meet the anticipated demand swell over the Aug 31-Sep 5 period, AAL aims to operate approximately 32,000 flights during this 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. To meet the anticipated demand swell over the Aug 31-Sep 5 period, AAL aims to operate approximately 32,000 flights during this period. AAL surpassed the Zacks Consensus Estimate for earnings in all the last four quarters, with an average of 19.2%.
|
Subsets and Splits
No community queries yet
The top public SQL queries from the community will appear here once available.