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4000.0
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2021-11-30 00:00:00 UTC
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March 2022 Options Now Available For American Airlines Group (AAL)
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AAL
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https://www.nasdaq.com/articles/march-2022-options-now-available-for-american-airlines-group-aal
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nan
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nan
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Investors in American Airlines Group Inc (Symbol: AAL) saw new options become available today, for the March 2022 expiration. One of the key inputs that goes into the price an option buyer is willing to pay, is the time value, so with 108 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 2022 contracts and identified one put and one call contract of particular interest.
The put contract at the $17.00 strike price has a current bid of $1.83. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $17.00, but will also collect the premium, putting the cost basis of the shares at $15.17 (before broker commissions). To an investor already interested in purchasing shares of AAL, that could represent an attractive alternative to paying $17.22/share today.
Because the $17.00 strike represents an approximate 1% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 56%. 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 10.76% return on the cash commitment, or 36.39% 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 $17.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $18.00 strike price has a current bid of $1.65. If an investor was to purchase shares of AAL stock at the current price level of $17.22/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $18.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 14.11% if the stock gets called away at the March 2022 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 $18.00 strike highlighted in red:
Considering the fact that the $18.00 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 53%. 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 9.58% boost of extra return to the investor, or 32.40% annualized, which we refer to as the YieldBoost.
The implied volatility in the put contract example, as well as the call contract example, are both approximately 54%.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 252 trading day closing values as well as today's price of $17.22) to be 47%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Top YieldBoost Calls of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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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 $18.00 strike highlighted in red: Considering the fact that the $18.00 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 2022 expiration.
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Below is a chart showing AAL's trailing twelve month trading history, with the $18.00 strike highlighted in red: Considering the fact that the $18.00 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 2022 expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new March 2022 contracts and identified one put and one call contract of particular interest.
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Below is a chart showing AAL's trailing twelve month trading history, with the $18.00 strike highlighted in red: Considering the fact that the $18.00 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 2022 expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new March 2022 contracts and identified one put and one call contract of particular interest.
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Below is a chart showing AAL's trailing twelve month trading history, with the $18.00 strike highlighted in red: Considering the fact that the $18.00 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 2022 expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new March 2022 contracts and identified one put and one call contract of particular interest.
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4001.0
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2021-11-30 00:00:00 UTC
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Midday Market Update: Why Are Stocks Down Today?
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AAL
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https://www.nasdaq.com/articles/midday-market-update%3A-why-are-stocks-down-today
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
It’s time for a midday market update for Tuesday and we’re diving into why stocks are down today!
Source: Sam Wordley / Shutterstock.com
The biggest concern on investors’ minds today easily has to be the Covid-19 Omicron variant. News of this new variant has investors wary once again as fears of additional lockdowns or restrictions spread.
So what exactly does this affect? Consider travel stocks, such as Southwest Airlines (NYSE:LUV) or American Airlines (NASDAQ:AAL), that would be hurt by decreasing travel. You can also expand that out to connected companies, like jet maker Boeing (NYSE:BA), which wouldn’t benefit from additional travel restrictions.
The retail sector is another one to consider when tackling why stocks are down today in our midday market update. Many, including Macy’s (NYSE:M), are only just now starting to recover from the damage the initial wave of coronavirus did. After all, scared shoppers aren’t as likely to risk hitting up malls during a pandemic.
7 Travel Stocks to Pack in Your Portfolio Ahead of Holiday Trips
Of course, we can’t just blame everything in Omicron. Continuing issues with inflation are another concern that investors have. Federal Reserve Chair Jerome Powell recently addressed these in a meeting with the Senate Banking Committee. Here’s a snippet of that from Yahoo Finance!
“At this point the economy is very strong and inflation pressures are high, and it is therefore appropriate, in my view, to consider wrapping up the taper of our asset purchases, which we announced at the November meeting, perhaps a few months sooner. I expect we will discuss that at our upcoming meeting.”
Investors seeking our morestock market newswill want to keep reading!
We’ve got all the latest coverage traders need to know about for Tuesday. A few examples of that include Amazon (NASDAQ:AMZN) union talk, details on Matterport (NASDAQ:MTTR), and what to know about Roundhill Ball Metaverse ETF (NYSE:META). You can find all of that at the links below!
More Tuesday Stock Market News
Amazon’s Alabama Workers Get Second Shot at a Union. What Does That Mean for AMZN Stock?
Spatial Computing Stocks: 14 Things to Know About Matterport as MTTR Gives Back Some Gains Today
META ETF: 10 Things to Know About the Roundhill Ball Metaverse ETF
On the date of publication, William White 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.
The post Midday Market Update: Why Are Stocks Down Today? 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.
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Consider travel stocks, such as Southwest Airlines (NYSE:LUV) or American Airlines (NASDAQ:AAL), that would be hurt by decreasing travel. Source: Sam Wordley / Shutterstock.com The biggest concern on investors’ minds today easily has to be the Covid-19 Omicron variant. You can also expand that out to connected companies, like jet maker Boeing (NYSE:BA), which wouldn’t benefit from additional travel restrictions.
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Consider travel stocks, such as Southwest Airlines (NYSE:LUV) or American Airlines (NASDAQ:AAL), that would be hurt by decreasing travel. InvestorPlace - Stock Market News, Stock Advice & Trading Tips It’s time for a midday market update for Tuesday and we’re diving into why stocks are down today! A few examples of that include Amazon (NASDAQ:AMZN) union talk, details on Matterport (NASDAQ:MTTR), and what to know about Roundhill Ball Metaverse ETF (NYSE:META).
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Consider travel stocks, such as Southwest Airlines (NYSE:LUV) or American Airlines (NASDAQ:AAL), that would be hurt by decreasing travel. InvestorPlace - Stock Market News, Stock Advice & Trading Tips It’s time for a midday market update for Tuesday and we’re diving into why stocks are down today! Spatial Computing Stocks: 14 Things to Know About Matterport as MTTR Gives Back Some Gains Today META ETF: 10 Things to Know About the Roundhill Ball Metaverse ETF On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.
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Consider travel stocks, such as Southwest Airlines (NYSE:LUV) or American Airlines (NASDAQ:AAL), that would be hurt by decreasing travel. InvestorPlace - Stock Market News, Stock Advice & Trading Tips It’s time for a midday market update for Tuesday and we’re diving into why stocks are down today! A few examples of that include Amazon (NASDAQ:AMZN) union talk, details on Matterport (NASDAQ:MTTR), and what to know about Roundhill Ball Metaverse ETF (NYSE:META).
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4002.0
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2021-11-30 00:00:00 UTC
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Activist investor Bluebell urges Glencore to separate its thermal coal unit
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AAL
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https://www.nasdaq.com/articles/activist-investor-bluebell-urges-glencore-to-separate-its-thermal-coal-unit
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Nov 30 (Reuters) - Activist investor Bluebell Capital Partners Ltd has asked miner and commodity trader Glencore Plc GLEN.L to separate its thermal coal business at a time when global mining firms have come under pressure to move to cleaner energy sources.
Thermal coal is not only the most polluting fossil fuel, its prices have soared recently on the back of Chinese power shortages and a European gas squeeze.
"Due to its coal business, Glencore is not an investible company for investors who place sustainability at the heart of their investment process," Bluebell said in a Nov. 8 letter to Glencore's top management.
Glencore in June bought the remaining 66% stake in the Cerrejon thermal coal mine in Colombia it did not already own from rivals BHP Group BHPB.L, BHP.AX and Anglo American AAL.L for $588 million. Glencore also owns thermal coal assets in Australia.
Its strategy of depleting its coal mines by mid-2040s rather than selling them, reflects a different path from other diversified miners such as BHP and Anglo American.
"Mounting pressure on financial institutions to reduce their lending and cut bond and equity underwriting to the fossil fuel industry, also pose significant risk to your (Glencore's) future access to capital," Bluebell added.
Responding to Bluebell's comments, Glencore said it engages regularly with its investors. The company has its annual investor day scheduled on Thursday.
"We are confident that our business model is uniquely placed to produce, recycle, and market the materials needed to decarbonise energy whilst reducing our own emissions and delivering value for stakeholders," a Glencore spokesman told Reuters.
(Reporting by Aby Jose Koilparambil in Bengaluru, and Clara Denina and Zandi Shabalala in London; Editing by Shinjini Ganguli)
((abyjose.koilparambil@thomsonreuters.com; +919986528692;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Glencore in June bought the remaining 66% stake in the Cerrejon thermal coal mine in Colombia it did not already own from rivals BHP Group BHPB.L, BHP.AX and Anglo American AAL.L for $588 million. Nov 30 (Reuters) - Activist investor Bluebell Capital Partners Ltd has asked miner and commodity trader Glencore Plc GLEN.L to separate its thermal coal business at a time when global mining firms have come under pressure to move to cleaner energy sources. "Mounting pressure on financial institutions to reduce their lending and cut bond and equity underwriting to the fossil fuel industry, also pose significant risk to your (Glencore's) future access to capital," Bluebell added.
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Glencore in June bought the remaining 66% stake in the Cerrejon thermal coal mine in Colombia it did not already own from rivals BHP Group BHPB.L, BHP.AX and Anglo American AAL.L for $588 million. Nov 30 (Reuters) - Activist investor Bluebell Capital Partners Ltd has asked miner and commodity trader Glencore Plc GLEN.L to separate its thermal coal business at a time when global mining firms have come under pressure to move to cleaner energy sources. "Due to its coal business, Glencore is not an investible company for investors who place sustainability at the heart of their investment process," Bluebell said in a Nov. 8 letter to Glencore's top management.
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Glencore in June bought the remaining 66% stake in the Cerrejon thermal coal mine in Colombia it did not already own from rivals BHP Group BHPB.L, BHP.AX and Anglo American AAL.L for $588 million. Nov 30 (Reuters) - Activist investor Bluebell Capital Partners Ltd has asked miner and commodity trader Glencore Plc GLEN.L to separate its thermal coal business at a time when global mining firms have come under pressure to move to cleaner energy sources. "Due to its coal business, Glencore is not an investible company for investors who place sustainability at the heart of their investment process," Bluebell said in a Nov. 8 letter to Glencore's top management.
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Glencore in June bought the remaining 66% stake in the Cerrejon thermal coal mine in Colombia it did not already own from rivals BHP Group BHPB.L, BHP.AX and Anglo American AAL.L for $588 million. Nov 30 (Reuters) - Activist investor Bluebell Capital Partners Ltd has asked miner and commodity trader Glencore Plc GLEN.L to separate its thermal coal business at a time when global mining firms have come under pressure to move to cleaner energy sources. Thermal coal is not only the most polluting fossil fuel, its prices have soared recently on the back of Chinese power shortages and a European gas squeeze.
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4003.0
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2021-11-29 00:00:00 UTC
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3 Stocks to Avoid This Week
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AAL
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https://www.nasdaq.com/articles/3-stocks-to-avoid-this-week-1
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nan
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nan
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Last week was rough for the stock market, and that typically plays out well for my feature where I single out three stocks that I think will lose to the market in the week ahead. My three stocks to avoid last week were on the move -- down 13%, down 10%, and down 10% -- averaging out to an 11% decline.
The S&P 500 slipped 2.2% for the week, so I was the relative winner with my bearish calls for the sixth week in a row. This week I see AMC Entertainment (NYSE: AMC), American Airlines Group (NASDAQ: AAL), and Splunk (NASDAQ: SPLK) as stocks that you may want to consider steering clear from this week. Let's go over my reasons for the near-term pessimism.
Image source: Getty Images.
AMC Entertainment
I have a soft spot for AMC and all that CEO Adam Aron has done to set his chain apart from its multiplex rivals. The stock's valuation is out of whack within the industry if we look ahead to next year, but betting against AMC has often proved painful in 2021.
This may be one of the justifiable pockets of pessimism. AMC shares surprisingly slipped just 3% on Friday as news of a fresh COVID-19 variant rattled the overall market. Box office returns over the holiday weekend were disappointing, and it's easy to see folks scaling back on screenings in the near term if the new omicron variant proves disruptive.
We're not at the same point where we were a year ago. Movie studios aren't delaying releases. Streaming services are giving theatrical release exclusivity windows a shot. However, all of this changes if folks stop going to the movies. AMC should continue to gain market share even through a downturn, but the shares may not have priced in the full potential impact of a surge in cases if omicron isn't kept in check.
American Airlines Group
Airlines didn't have it as bad as cruise line operators did when the pandemic hit last year. Countries were quick to get folks flying again despite the obvious risks of spreading the COVID-19 virus inside an enclosed airplane for hours of cramped air travel. Will the new and problematic omicron variant change that approach?
Dutch authorities are looking into a pair of inbound flights from South Africa after 61 passengers tested positive for the COVID-19 virus.
Airlines got a pass because air travel generates tourism and establishes a sense of normality. It wasn't the cruise line industry that operates offshore with tax-advantaged operating structures and generates little revenue at the local level. We can't yet suggest that the omicron variant will change the pro-airline mindset, but we're already seeing international travel restrictions start to happen. A return to profitability next summer for American Airlines doesn't seem to be on the flight plan anymore, and jet fuel prices setting carriers back a lot more than during the last slowdown. The stock took a 9% hit on Friday on the variant news, but this doesn't seem like a "buy the dip" scenario.
Splunk
There was a time when "big data" was a futuristic buzzword and Splunk was a market darling. A few things have changed. Growth has slowed dramatically at Splunk. After at least a decade of steadily decelerating revenue growth at Splunk -- but keeping its year-over-year increases above 30% -- revenue growth was negative last year.
A lot of companies saw their top lines dip last year, but Splunk's expected to grow its revenue in the teens this fiscal year despite stacking that against depressed results from a year earlier. This isn't an earnings story, but Splunk has fallen short of Wall Street profit targets twice over the past year, and estimates continue to be adjusted deeper into the red. Splunk is now three years away from generating positive earnings. It reports financial results for its fiscal third quarter on Wednesday, and it's hard to get excited.
If you're looking for safe stocks, you aren't likely to find them in AMC Entertainment, American Airlines Group, or Splunk this week.
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Rick Munarriz has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Splunk. 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.
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This week I see AMC Entertainment (NYSE: AMC), American Airlines Group (NASDAQ: AAL), and Splunk (NASDAQ: SPLK) as stocks that you may want to consider steering clear from this week. Box office returns over the holiday weekend were disappointing, and it's easy to see folks scaling back on screenings in the near term if the new omicron variant proves disruptive. A return to profitability next summer for American Airlines doesn't seem to be on the flight plan anymore, and jet fuel prices setting carriers back a lot more than during the last slowdown.
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This week I see AMC Entertainment (NYSE: AMC), American Airlines Group (NASDAQ: AAL), and Splunk (NASDAQ: SPLK) as stocks that you may want to consider steering clear from this week. American Airlines Group Airlines didn't have it as bad as cruise line operators did when the pandemic hit last year. If you're looking for safe stocks, you aren't likely to find them in AMC Entertainment, American Airlines Group, or Splunk this week.
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This week I see AMC Entertainment (NYSE: AMC), American Airlines Group (NASDAQ: AAL), and Splunk (NASDAQ: SPLK) as stocks that you may want to consider steering clear from this week. Last week was rough for the stock market, and that typically plays out well for my feature where I single out three stocks that I think will lose to the market in the week ahead. If you're looking for safe stocks, you aren't likely to find them in AMC Entertainment, American Airlines Group, or Splunk this week.
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This week I see AMC Entertainment (NYSE: AMC), American Airlines Group (NASDAQ: AAL), and Splunk (NASDAQ: SPLK) as stocks that you may want to consider steering clear from this week. Last week was rough for the stock market, and that typically plays out well for my feature where I single out three stocks that I think will lose to the market in the week ahead. Splunk is now three years away from generating positive earnings.
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4004.0
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2021-11-29 00:00:00 UTC
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Trial in U.S. Justice Dept fight with American Airlines set for Sept 2022
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AAL
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https://www.nasdaq.com/articles/trial-in-u.s.-justice-dept-fight-with-american-airlines-set-for-sept-2022
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nan
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nan
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WASHINGTON, Nov 29 (Reuters) - The judge hearing the U.S. Justice Department's antitrust lawsuit against American Airlines Group Inc and JetBlue Airways Corp said on Monday that the trial in the matter would begin on Sept. 26, 2022.
In its lawsuit, the government asked Judge Leo Sorokin to order the airlines to end their "Northeast Alliance" partnership, saying it would lead to higher fares in busy Northeastern airports.
The agreement allows American and JetBlue to sell each other's flights in their New York-area and Boston networks and link frequent flyer programs, giving them more muscle to compete with United Airlines and Delta Air Lines in the Northeast.
American and JetBlue have denied wrongdoing and asked Sorokin to dismiss the lawsuit.
The Justice Department's lawsuit signaled the Biden administration's interest in trying to inject more competition into the airline industry, where American and three other airlines control 80% of the domestic market. (Reporting by Diane Bartz; Editing by Leslie Adler) ((Diane.Bartz@thomsonreuters.com; 1 202 898 8313;)) Keywords: AMERICAN AIRLINES JETBLUE AIRWAYS/
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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WASHINGTON, Nov 29 (Reuters) - The judge hearing the U.S. Justice Department's antitrust lawsuit against American Airlines Group Inc and JetBlue Airways Corp said on Monday that the trial in the matter would begin on Sept. 26, 2022. In its lawsuit, the government asked Judge Leo Sorokin to order the airlines to end their "Northeast Alliance" partnership, saying it would lead to higher fares in busy Northeastern airports. The agreement allows American and JetBlue to sell each other's flights in their New York-area and Boston networks and link frequent flyer programs, giving them more muscle to compete with United Airlines and Delta Air Lines in the Northeast.
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WASHINGTON, Nov 29 (Reuters) - The judge hearing the U.S. Justice Department's antitrust lawsuit against American Airlines Group Inc and JetBlue Airways Corp said on Monday that the trial in the matter would begin on Sept. 26, 2022. The Justice Department's lawsuit signaled the Biden administration's interest in trying to inject more competition into the airline industry, where American and three other airlines control 80% of the domestic market. (Reporting by Diane Bartz; Editing by Leslie Adler) ((Diane.Bartz@thomsonreuters.com; 1 202 898 8313;)) Keywords: AMERICAN AIRLINES JETBLUE AIRWAYS/ The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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WASHINGTON, Nov 29 (Reuters) - The judge hearing the U.S. Justice Department's antitrust lawsuit against American Airlines Group Inc and JetBlue Airways Corp said on Monday that the trial in the matter would begin on Sept. 26, 2022. The Justice Department's lawsuit signaled the Biden administration's interest in trying to inject more competition into the airline industry, where American and three other airlines control 80% of the domestic market. (Reporting by Diane Bartz; Editing by Leslie Adler) ((Diane.Bartz@thomsonreuters.com; 1 202 898 8313;)) Keywords: AMERICAN AIRLINES JETBLUE AIRWAYS/ The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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WASHINGTON, Nov 29 (Reuters) - The judge hearing the U.S. Justice Department's antitrust lawsuit against American Airlines Group Inc and JetBlue Airways Corp said on Monday that the trial in the matter would begin on Sept. 26, 2022. In its lawsuit, the government asked Judge Leo Sorokin to order the airlines to end their "Northeast Alliance" partnership, saying it would lead to higher fares in busy Northeastern airports. The agreement allows American and JetBlue to sell each other's flights in their New York-area and Boston networks and link frequent flyer programs, giving them more muscle to compete with United Airlines and Delta Air Lines in the Northeast.
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4005.0
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2021-11-29 00:00:00 UTC
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Pre-Market Most Active for Nov 29, 2021 : NRXP, SQQQ, PFE, CCL, MRNA, AAPL, LI, AAL, RLX, NIO, NCLH, F
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AAL
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https://www.nasdaq.com/articles/pre-market-most-active-for-nov-29-2021-%3A-nrxp-sqqq-pfe-ccl-mrna-aapl-li-aal-rlx-nio-nclh-f
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The NASDAQ 100 Pre-Market Indicator is up 180.63 to 16,206.21. The total Pre-Market volume is currently 38,125,536 shares traded.
The following are the most active stocks for the pre-market session:
NRX Pharmaceuticals, Inc. (NRXP) is +3.15 at $9.90, with 10,683,403 shares traded.
ProShares UltraPro Short QQQ (SQQQ) is -0.17 at $6.29, with 2,720,964 shares traded. This represents a 10.54% increase from its 52 Week Low.
Pfizer, Inc. (PFE) is +0.79 at $54.79, with 1,362,024 shares traded., following a 52-week high recorded in prior regular session.
Carnival Corporation (CCL) is +0.85 at $18.80, with 1,220,686 shares traded., following a 52-week high recorded in prior regular session.
Moderna, Inc. (MRNA) is +32.4701 at $362.10, with 1,187,635 shares traded. MRNA's current last sale is 143.69% of the target price of $252.
Apple Inc. (AAPL) is +2.46 at $159.27, with 1,074,822 shares traded. Over the last four weeks they have had 5 up revisions for the earnings forecast, for the fiscal quarter ending Mar 2022. The consensus EPS forecast is $1.37. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
Li Auto Inc. (LI) is +2.67 at $35.07, with 1,051,301 shares traded. As reported by Zacks, the current mean recommendation for LI is in the "buy range".
American Airlines Group, Inc. (AAL) is +0.37 at $18.12, with 1,036,170 shares traded. AAL's current last sale is 92.92% of the target price of $19.5.
RLX Technology Inc. (RLX) is +0.1 at $5.61, with 1,010,424 shares traded.RLX is scheduled to provide an earnings report on 12/3/2021, for the fiscal quarter ending Sep2021.
NIO Inc. (NIO) is +1.11 at $41.10, with 643,095 shares traded. As reported by Zacks, the current mean recommendation for NIO is in the "buy range".
Norwegian Cruise Line Holdings Ltd. (NCLH) is +0.87 at $20.93, with 505,825 shares traded., following a 52-week high recorded in prior regular session.
Ford Motor Company (F) is +0.13 at $19.88, with 505,048 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2021. The consensus EPS forecast is $0.36. F's current last sale is 116.94% of the target price of $17.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines Group, Inc. (AAL) is +0.37 at $18.12, with 1,036,170 shares traded. AAL's current last sale is 92.92% of the target price of $19.5. Carnival Corporation (CCL) is +0.85 at $18.80, with 1,220,686 shares traded., following a 52-week high recorded in prior regular session.
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American Airlines Group, Inc. (AAL) is +0.37 at $18.12, with 1,036,170 shares traded. AAL's current last sale is 92.92% of the target price of $19.5. Pfizer, Inc. (PFE) is +0.79 at $54.79, with 1,362,024 shares traded., following a 52-week high recorded in prior regular session.
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American Airlines Group, Inc. (AAL) is +0.37 at $18.12, with 1,036,170 shares traded. AAL's current last sale is 92.92% of the target price of $19.5. The total Pre-Market volume is currently 38,125,536 shares traded.
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American Airlines Group, Inc. (AAL) is +0.37 at $18.12, with 1,036,170 shares traded. AAL's current last sale is 92.92% of the target price of $19.5. The NASDAQ 100 Pre-Market Indicator is up 180.63 to 16,206.21.
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4006.0
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2021-11-27 00:00:00 UTC
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Guatemalan stowaway survives flight to Miami hidden in plane's landing gear
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AAL
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https://www.nasdaq.com/articles/guatemalan-stowaway-survives-flight-to-miami-hidden-in-planes-landing-gear
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nan
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nan
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By Steve Gorman
Nov 27 (Reuters) - A Guatemalan stowaway hidden in the landing gear compartment of an American Airlines jet survived a flight on Saturday from his home country to Miami, where he was turned over to U.S. immigration officials and taken to a hospital for evaluation.
The U.S. Customs and Border Protection agency confirmed the incident in a statement initially cited by Miami-based television station WTVJ, which posted video taken of the man at Miami International Airport shortly after the plane landed.
The video, attributed to the social media page "Only in Dade" on Instagram, showed the stowaway appearing dazed but otherwise unharmed, sitting on the tarmac beside the plane - dressed in blue jeans, a T-shirt, jacket and boots - as ground crew personnel tended to him and asked if he wanted some water.
"U.S. Customs and Border Protection (CBP) officers at Miami International Airport apprehended a 26-year-old man who attempted to evade detection in the landing gear compartment of an aircraft arriving from Guatemala Saturday morning," the CBP statement said.
"The individual was evaluated by emergency medical services and taken to a hospital for medical assessment," the agency added. "This incident remains under investigation."
American Airlines issued a statement saying its Flight 1182 from Guatemala City to Miami arrived shortly after 10 a.m. local time and "was met by law enforcement due to a security issue."
The airline gave no further details, except to say it was assisting in the investigation. The Guatemala-to-Miami trip is a flight of just over 2 1/2 hours.
Guatemala has accounted for a large portion of some 1.7 million migrants apprehended or expelled by U.S. border agents over the past year, many of them Central Americans fleeing violent gangs and grinding poverty.
Immigration attorney Angel Leal told WTVJ the Guatemalan stowaway would be detained by CBP while facing an expedited removal order.
The incident was reminiscent of footage in August showing desperate Afghans trying to latch onto the exterior of a U.S. military cargo jet as it taxied for take-off during chaotic evacuations from Kabul after Taliban forces seized control of Afghanistan. Separate video showed what appeared to be two people falling from the plane as it flew off from Kabul.
The Federal Aviation Administration declined to comment on Saturday's incident.
According to the FAA, 129 people have attempted to stow away in the wheel wells or other areas of commercial aircraft worldwide since 1947. Of those, the agency said, 100 have died of injuries or exposure.
In one such incident in April 2014, a 16-year-old boy who ran away from home survived five hours in the wheel well of a jetliner as it flew from California to Hawaii.
(Reporting by Steve Gorman in Los Angeles; Additional reporting by David Shepardson in Washington; Editing by Simon Cameron-Moore)
((steve.gorman@thomsonreuters.com; 310-491-7256; Reuters Messaging: steve.gorman.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.
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By Steve Gorman Nov 27 (Reuters) - A Guatemalan stowaway hidden in the landing gear compartment of an American Airlines jet survived a flight on Saturday from his home country to Miami, where he was turned over to U.S. immigration officials and taken to a hospital for evaluation. The video, attributed to the social media page "Only in Dade" on Instagram, showed the stowaway appearing dazed but otherwise unharmed, sitting on the tarmac beside the plane - dressed in blue jeans, a T-shirt, jacket and boots - as ground crew personnel tended to him and asked if he wanted some water. The incident was reminiscent of footage in August showing desperate Afghans trying to latch onto the exterior of a U.S. military cargo jet as it taxied for take-off during chaotic evacuations from Kabul after Taliban forces seized control of Afghanistan.
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By Steve Gorman Nov 27 (Reuters) - A Guatemalan stowaway hidden in the landing gear compartment of an American Airlines jet survived a flight on Saturday from his home country to Miami, where he was turned over to U.S. immigration officials and taken to a hospital for evaluation. "U.S. Customs and Border Protection (CBP) officers at Miami International Airport apprehended a 26-year-old man who attempted to evade detection in the landing gear compartment of an aircraft arriving from Guatemala Saturday morning," the CBP statement said. American Airlines issued a statement saying its Flight 1182 from Guatemala City to Miami arrived shortly after 10 a.m. local time and "was met by law enforcement due to a security issue."
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By Steve Gorman Nov 27 (Reuters) - A Guatemalan stowaway hidden in the landing gear compartment of an American Airlines jet survived a flight on Saturday from his home country to Miami, where he was turned over to U.S. immigration officials and taken to a hospital for evaluation. The U.S. Customs and Border Protection agency confirmed the incident in a statement initially cited by Miami-based television station WTVJ, which posted video taken of the man at Miami International Airport shortly after the plane landed. "U.S. Customs and Border Protection (CBP) officers at Miami International Airport apprehended a 26-year-old man who attempted to evade detection in the landing gear compartment of an aircraft arriving from Guatemala Saturday morning," the CBP statement said.
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By Steve Gorman Nov 27 (Reuters) - A Guatemalan stowaway hidden in the landing gear compartment of an American Airlines jet survived a flight on Saturday from his home country to Miami, where he was turned over to U.S. immigration officials and taken to a hospital for evaluation. "U.S. Customs and Border Protection (CBP) officers at Miami International Airport apprehended a 26-year-old man who attempted to evade detection in the landing gear compartment of an aircraft arriving from Guatemala Saturday morning," the CBP statement said. Separate video showed what appeared to be two people falling from the plane as it flew off from Kabul.
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4007.0
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2021-11-26 00:00:00 UTC
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New "Nu" COVID Variant Rattles Stock Markets
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AAL
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https://www.nasdaq.com/articles/new-nu-covid-variant-rattles-stock-markets
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nan
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nan
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A new variant of the COVID-19 virus identified recently in Africa has put a scare into most risk assets ahead of Friday's holiday-shortened trading session.
The variant – B.1.1.529, which could be labeled "nu" by the World Health Organization as soon as today – was first identified in either Botswana or South Africa, according to conflicting reports, and has since been detected in Hong Kong as well.
SEE MORE The 30 Best Stocks of the Past 30 Years
Little is known about the virus, which South Africa fears might be responsible for a recent spike in cases, from 200 daily recently to 2,465 on Thursday. However, U.K. Health Secretary Sajid Javid said at a press conference that this nu variant "may be more transmissible" than delta, which is currently the globe's dominant strain.
But the sudden burst of uncertainty was enough to send markets reeling.
The Dow Jones Industrial Average was off 800 points (-2.3%) ahead of Friday's open, while the S&P 500 was down 79 points (1.7%) and the Nasdaq Composite was lower by 167 points (-1.0%).
"This morning already, there has been a substantial market reaction, with travel-related stocks in particular having been heavily affected," says Deutsche Bank Research Analyst Jonathan Jayarajan. "That comes as countries have moved to tighten restrictions, with the U.K. already adding six countries to its red list, and European Commission President von der Leyen proposing that the emergency brake be activated to stop air travel from southern Africa."
Examples of travel stocks that were getting hit hard Friday morning include Carnival (CCL, -10.0%), American Airlines (AAL, -7.5%) United Airlines (UAL, -8.3%) and Expedia (EXPE, -7.4%).
Sign up for Kiplinger's FREE Closing Bell e-letter: Our daily look at the stock market's most important headlines, and what moves investors should make.
"Other assets have also been affected, with investors moving rapidly into safe 7havens such as sovereign bonds, just as they move to push back their expected timing of future rate hikes from central banks as well,"Jayarajan says. "Oil prices have moved sharply lower on the prospect of weaker growth and lower mobility, and West Texas Intermediate (U.S. crude oil) is back beneath $75 per barrel at the time of writing.
Even cryptocurrencies reminded markets that they too are risk assets; Bitcoin, for instance, was off 7.8% to $54,425.
SEE MORE How Do I Spend My Bitcoin? (And Where?)
The CBOE Volatility Index, meanwhile, shot 33.0% higher to 25.77 – a level last seen in February of this year.
And naturally, several assets that were popular during the 2020's COVID crash were en vogue Friday morning. COVID vaccine makers Pfizer (PFE, +6.1%) and Moderna (MRNA, +12.7%) were both poised to jump at the open. Popular stay-at-home plays including Zoom Communications (ZM, +9.5%) and Peloton Interactive (PTON, +7.0%) also were signaling significant gains.
Quick Takeaways
The nu COVID variant certainly bears watching, as it could trigger even more worldwide shutdowns and slam the progress of economic recoveries around the globe. In turn, that could also prompt the world's central banks (including the Federal Reserve) to reconsider recent adjustments to tighten monetary policy and delay future rate hikes.
But also worth noting is similar scares, such as with the lambda and mu strains. These variants weren't found to be any more transmissible or dangerous than the delta variant. A similar development with nu COVID could see this downturn reverse course just as quickly.
"The economic recovery has been quite impressive and the one thing that could knock it over completely would be a more dangerous variant," says Ryan Detrick, chief market strategist for broker-dealer LPL Financial. "Time will tell how worried we should be, but investors are selling in front of potential bad news."
SEE MORE The 12 Best Healthcare Stocks to Buy for 2022
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Examples of travel stocks that were getting hit hard Friday morning include Carnival (CCL, -10.0%), American Airlines (AAL, -7.5%) United Airlines (UAL, -8.3%) and Expedia (EXPE, -7.4%). The variant – B.1.1.529, which could be labeled "nu" by the World Health Organization as soon as today – was first identified in either Botswana or South Africa, according to conflicting reports, and has since been detected in Hong Kong as well. In turn, that could also prompt the world's central banks (including the Federal Reserve) to reconsider recent adjustments to tighten monetary policy and delay future rate hikes.
|
Examples of travel stocks that were getting hit hard Friday morning include Carnival (CCL, -10.0%), American Airlines (AAL, -7.5%) United Airlines (UAL, -8.3%) and Expedia (EXPE, -7.4%). A new variant of the COVID-19 virus identified recently in Africa has put a scare into most risk assets ahead of Friday's holiday-shortened trading session. "Other assets have also been affected, with investors moving rapidly into safe 7havens such as sovereign bonds, just as they move to push back their expected timing of future rate hikes from central banks as well,"Jayarajan says.
|
Examples of travel stocks that were getting hit hard Friday morning include Carnival (CCL, -10.0%), American Airlines (AAL, -7.5%) United Airlines (UAL, -8.3%) and Expedia (EXPE, -7.4%). A new variant of the COVID-19 virus identified recently in Africa has put a scare into most risk assets ahead of Friday's holiday-shortened trading session. "Other assets have also been affected, with investors moving rapidly into safe 7havens such as sovereign bonds, just as they move to push back their expected timing of future rate hikes from central banks as well,"Jayarajan says.
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Examples of travel stocks that were getting hit hard Friday morning include Carnival (CCL, -10.0%), American Airlines (AAL, -7.5%) United Airlines (UAL, -8.3%) and Expedia (EXPE, -7.4%). A new variant of the COVID-19 virus identified recently in Africa has put a scare into most risk assets ahead of Friday's holiday-shortened trading session. However, U.K. Health Secretary Sajid Javid said at a press conference that this nu variant "may be more transmissible" than delta, which is currently the globe's dominant strain.
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4008.0
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2021-11-26 00:00:00 UTC
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From cruise operators to airlines: 'Reopening' stocks tumble on variant fears
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AAL
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https://www.nasdaq.com/articles/from-cruise-operators-to-airlines%3A-reopening-stocks-tumble-on-variant-fears-0
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nan
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nan
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By Akash Sriram
Nov 26 (Reuters) - Companies benefiting from this year's economic reopening, including AMC Entertainment, United Airlines and Carnival Corp, were hammered on Friday by fears that a possibly vaccine-resistant coronavirus variant could mar their recovery.
The variant, detected in South Africa, prompted several countries to tighten border controls and investors around the globe to dump equities for safer assets. MKTS/GLOB
Travel and leisure stocks bore the brunt of the selloff in the United States, with carriers United UAL.O, Delta Air DAL.N and American Airlines AAL.O losing between 8% and 10% to open at their lowest levels in several months.
Hotel chains Hyatt H.N, Marriott MAR.O and Hilton HLT.N fell between 8% and 11%, while cruise operators Carnival CCL.N, Royal Caribbean RCL.N and Norwegian NCLH.K slumped about 10% each. Theater chain AMC AMC.N sank 6.2%.
Little is known of the variant but scientists say it has an unusual combination of mutations, may be able to evade immune responses and could be more transmissible.
"The economic recovery has been quite impressive and the one thing that could knock it over completely would be a more dangerous variant. Time will tell how worried we should be, but investors are selling in front of potential bad news," said Ryan Detrick, senior market strategist at LPL Financial.
The news, however, sparked a rally in last year's stay-at-home darlings such as fitness company Peloton PTON.O, Zoom Video Communications ZM.O, and videogame publisher Take-Two TTWO.O.
"Investment gods have given the late-to-sell investors a second opportunity to do so because the stocks that did well in the COVID lockdown, like Peloton or Zoom, are probably going to do well once again," said Sam Stovall, chief investment strategist at CFRA Research.
U.S. retail stocks slide on Black Friday as new virus worries arise
(Reporting by Akash Sriram, Subrat Patnaik, Sruthi Shankar and Bansari Mayur Kamdar in Bengaluru; Editing by Aditya Soni)
((Akash.Sriram@thomsonreuters.com; www.twitter.com/hoodieonveshti))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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MKTS/GLOB Travel and leisure stocks bore the brunt of the selloff in the United States, with carriers United UAL.O, Delta Air DAL.N and American Airlines AAL.O losing between 8% and 10% to open at their lowest levels in several months. By Akash Sriram Nov 26 (Reuters) - Companies benefiting from this year's economic reopening, including AMC Entertainment, United Airlines and Carnival Corp, were hammered on Friday by fears that a possibly vaccine-resistant coronavirus variant could mar their recovery. Time will tell how worried we should be, but investors are selling in front of potential bad news," said Ryan Detrick, senior market strategist at LPL Financial.
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MKTS/GLOB Travel and leisure stocks bore the brunt of the selloff in the United States, with carriers United UAL.O, Delta Air DAL.N and American Airlines AAL.O losing between 8% and 10% to open at their lowest levels in several months. By Akash Sriram Nov 26 (Reuters) - Companies benefiting from this year's economic reopening, including AMC Entertainment, United Airlines and Carnival Corp, were hammered on Friday by fears that a possibly vaccine-resistant coronavirus variant could mar their recovery. Theater chain AMC AMC.N sank 6.2%.
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MKTS/GLOB Travel and leisure stocks bore the brunt of the selloff in the United States, with carriers United UAL.O, Delta Air DAL.N and American Airlines AAL.O losing between 8% and 10% to open at their lowest levels in several months. By Akash Sriram Nov 26 (Reuters) - Companies benefiting from this year's economic reopening, including AMC Entertainment, United Airlines and Carnival Corp, were hammered on Friday by fears that a possibly vaccine-resistant coronavirus variant could mar their recovery. "Investment gods have given the late-to-sell investors a second opportunity to do so because the stocks that did well in the COVID lockdown, like Peloton or Zoom, are probably going to do well once again," said Sam Stovall, chief investment strategist at CFRA Research.
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MKTS/GLOB Travel and leisure stocks bore the brunt of the selloff in the United States, with carriers United UAL.O, Delta Air DAL.N and American Airlines AAL.O losing between 8% and 10% to open at their lowest levels in several months. By Akash Sriram Nov 26 (Reuters) - Companies benefiting from this year's economic reopening, including AMC Entertainment, United Airlines and Carnival Corp, were hammered on Friday by fears that a possibly vaccine-resistant coronavirus variant could mar their recovery. The variant, detected in South Africa, prompted several countries to tighten border controls and investors around the globe to dump equities for safer assets.
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4009.0
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2021-11-26 00:00:00 UTC
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Stocks tumble on new coronavirus variant fear
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AAL
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https://www.nasdaq.com/articles/stocks-tumble-on-new-coronavirus-variant-fear-0
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nan
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nan
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By Chuck Mikolajczak
NEW YORK, Nov 26 (Reuters) - U.S. stocks closed lower on Friday, with the Dow .DJI and S&P 500 .SPX suffering their biggest one-day percentage drops in months, and pandemic-hit sectors that had gained from a reopening falling sharply after a new coronavirus mutation was found.
Authorities worldwide reacted with alarm on Friday to the coronavirus variant found in South Africa, with the European Union and Britain among those tightening border controls as researchers sought to establish if it was vaccine-resistant.
Cruise operators Carnival Corp CCL.N, Royal Caribbean Cruises RCL.N and Norwegian Cruise Line NCLH.K each plunged more than 10%, while shares in United Airlines UAL.O, Delta Air Lines DAL.N and American Airlines AAL.O also tumbled. The NYSE Arca Airline index .XAL fell 6.45% in its biggest one-day percentage decline since September 2020.
Retailers dropped 2.04% as Black Friday kicked off the holiday shopping season with worries that the new variant would depress store traffic and curb supply.
Selling was broad, with big declines of more than 1% in all 11 major S&P sectors except healthcare .SPXHC, which fell just 0.45% thanks to COVID-19 vaccine makers Pfizer Inc PFE.N rising 6.11% to close at a record high of $54, and Moderna Inc MRNA.Ojumping 20.57%.
"It is déjà vu all over again for like the eighth time," said Keith Buchanan, senior portfolio manager at Global Investments in Atlanta.
"What we understand about this variant could accelerate over the weekend, if there is more concerning news than good news, a lot of people don't want to be holding risk assets on Monday morning, or are afraid of what that could look like Monday morning."
Despite the sell-off, market participants noted the drop was likely exaggerated by the thin volume during the shortened post-Thanksgiving holiday session.
The Dow Jones Industrial Average .DJI fell 905.04 points, or 2.53%, to 34,899.34; the S&P 500 .SPX lost 106.84 points, or 2.27%, to 4,594.62; and the Nasdaq Composite .IXIC dropped 353.57 points, or 2.23%, to 15,491.66.
The domestically focused Russell 2000 small-cap index .RUT fell 3.67%. Both the S&P 500 and small cap Russell index posted their biggest one-day percentage drops since Feb. 25.
The S&P 500 banks index .SPXBK dropped 3.87% as investors dialed back expectations of faster U.S. interest rate hikes. Energy .SPNY, this year's best performing sector, dropped 4% on the day, its biggest decline in more than eight months, as crude prices plunged $10 a barrel.
Elevated U.S. inflation, coupled with strong economic data and the renomination of Jerome Powell as Federal Reserve chair by U.S. President Joe Biden, had fueled expectations the central bank might hike interest rates sooner than expected.
The CBOE volatility index .VIX, popularly known as Wall Street's fear gauge, hit its highest level since early March.
Stocks such as Netflix Inc NFLX.O, Peloton Interactive PTON.O and Zoom Video Communications ZM.O, known as "stay-at-home" names, all scored solid advances.
Declining issues outnumbered advancers on the NYSE by a 5.84-to-1 ratio; on Nasdaq, a 3.96-to-1 ratio favored decliners.
The S&P 500 posted seven new 52-week highs and 23 new lows; the Nasdaq Composite recorded 18 new highs and 334 new lows.
(Reporting by Chuck Mikolajczak; Editing by Richard Chang)
((charles.mikolajczak@tr.com; @ChuckMik;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Cruise operators Carnival Corp CCL.N, Royal Caribbean Cruises RCL.N and Norwegian Cruise Line NCLH.K each plunged more than 10%, while shares in United Airlines UAL.O, Delta Air Lines DAL.N and American Airlines AAL.O also tumbled. By Chuck Mikolajczak NEW YORK, Nov 26 (Reuters) - U.S. stocks closed lower on Friday, with the Dow .DJI and S&P 500 .SPX suffering their biggest one-day percentage drops in months, and pandemic-hit sectors that had gained from a reopening falling sharply after a new coronavirus mutation was found. Authorities worldwide reacted with alarm on Friday to the coronavirus variant found in South Africa, with the European Union and Britain among those tightening border controls as researchers sought to establish if it was vaccine-resistant.
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Cruise operators Carnival Corp CCL.N, Royal Caribbean Cruises RCL.N and Norwegian Cruise Line NCLH.K each plunged more than 10%, while shares in United Airlines UAL.O, Delta Air Lines DAL.N and American Airlines AAL.O also tumbled. By Chuck Mikolajczak NEW YORK, Nov 26 (Reuters) - U.S. stocks closed lower on Friday, with the Dow .DJI and S&P 500 .SPX suffering their biggest one-day percentage drops in months, and pandemic-hit sectors that had gained from a reopening falling sharply after a new coronavirus mutation was found. The NYSE Arca Airline index .XAL fell 6.45% in its biggest one-day percentage decline since September 2020.
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Cruise operators Carnival Corp CCL.N, Royal Caribbean Cruises RCL.N and Norwegian Cruise Line NCLH.K each plunged more than 10%, while shares in United Airlines UAL.O, Delta Air Lines DAL.N and American Airlines AAL.O also tumbled. By Chuck Mikolajczak NEW YORK, Nov 26 (Reuters) - U.S. stocks closed lower on Friday, with the Dow .DJI and S&P 500 .SPX suffering their biggest one-day percentage drops in months, and pandemic-hit sectors that had gained from a reopening falling sharply after a new coronavirus mutation was found. The NYSE Arca Airline index .XAL fell 6.45% in its biggest one-day percentage decline since September 2020.
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Cruise operators Carnival Corp CCL.N, Royal Caribbean Cruises RCL.N and Norwegian Cruise Line NCLH.K each plunged more than 10%, while shares in United Airlines UAL.O, Delta Air Lines DAL.N and American Airlines AAL.O also tumbled. By Chuck Mikolajczak NEW YORK, Nov 26 (Reuters) - U.S. stocks closed lower on Friday, with the Dow .DJI and S&P 500 .SPX suffering their biggest one-day percentage drops in months, and pandemic-hit sectors that had gained from a reopening falling sharply after a new coronavirus mutation was found. The NYSE Arca Airline index .XAL fell 6.45% in its biggest one-day percentage decline since September 2020.
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4010.0
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2021-11-26 00:00:00 UTC
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US STOCKS-Stocks tumble on new coronavirus variant fear
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AAL
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https://www.nasdaq.com/articles/us-stocks-stocks-tumble-on-new-coronavirus-variant-fear
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nan
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nan
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By Chuck Mikolajczak
NEW YORK, Nov 26 (Reuters) - U.S. stocks dropped on Friday, with the Dow .DJI and S&P 500 .SPX suffering their biggest one-day percentage drops in months, and pandemic-hit sectors that have benefited from a reopening falling sharply after a new and potentially vaccine-resistant coronavirus mutation was found.
Authorities around the world reacted with alarm on Friday to the coronavirus variant found in South Africa, with the European Union and Britain among those tightening border controls as researchers sought to establish if the mutation was vaccine-resistant.
Cruise operators Carnival Corp CCL.N, Royal Caribbean Cruises RCL.N and Norwegian Cruise Line NCLH.K each plunged more than 10%, while shares in United Airlines UAL.O, Delta Air Lines DAL.N and American Airlines AAL.O also tumbled. The NYSE Arca Airline index .XAL saw its biggest one-day percentage decline in over a year.
Retailers fell as Black Friday, the start of the holiday shopping season, kicked off as the new variant fueled concerns about low store traffic and inventory issues.
Selling was broad, with big declines in all 11 major S&P sectors except healthcare .SPXHC, which fell slightly thanks to strong gains in COVID-19 vaccine makers Pfizer Inc PFE.N and Moderna Inc MRNA.O.
"It is déjà vu all over again for like the eighth time," said Keith Buchanan, senior portfolio manager at Global Investments in Atlanta.
"What we understand about this variant could accelerate over the weekend, if there is more concerning news than good news, a lot of people don't want to be holding risk assets on Monday morning, or are afraid of what that could look like Monday morning."
Despite the sell-off, market participants noted the drop was likely exaggerated by the thin volume during the shortened post-Thanksgiving holiday session.
Unofficially, the Dow Jones Industrial Average .DJI fell 905.04 points, or 2.53%, to 34,899.34, the S&P 500 .SPX lost 106.74 points, or 2.27%, to 4,594.72 and the Nasdaq Composite .IXIC dropped 353.57 points, or 2.23%, to 15,491.66.
The domestically focused Russell 2000 small-cap index .RUT tumbled more than 3%.
The S&P 500 banks index .SPXBK plummeted as investors dialed back expectations of faster U.S. interest rate hikes.
Elevated U.S. inflation, coupled with strong economic data and the renomination of Jerome Powell as the Federal Reserve chair by U.S. President Joe Biden, had fueled expectations the central bank may have to hike interest rates earlier than it had been forecasting.
The CBOE volatility index .VIX, popularly known as Wall Street's fear gauge, hit its highest level since Sept. 20.
Stocks such as Netflix Inc NFLX.O, Peloton Interactive PTON.O and Zoom Video Communications ZM.O, known as "Stay-at-home" names all saw solid advances.
(Reporting by Chuck Mikolajczak; Editing by Richard Chang)
((charles.mikolajczak@tr.com; @ChuckMik;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Cruise operators Carnival Corp CCL.N, Royal Caribbean Cruises RCL.N and Norwegian Cruise Line NCLH.K each plunged more than 10%, while shares in United Airlines UAL.O, Delta Air Lines DAL.N and American Airlines AAL.O also tumbled. Authorities around the world reacted with alarm on Friday to the coronavirus variant found in South Africa, with the European Union and Britain among those tightening border controls as researchers sought to establish if the mutation was vaccine-resistant. Retailers fell as Black Friday, the start of the holiday shopping season, kicked off as the new variant fueled concerns about low store traffic and inventory issues.
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Cruise operators Carnival Corp CCL.N, Royal Caribbean Cruises RCL.N and Norwegian Cruise Line NCLH.K each plunged more than 10%, while shares in United Airlines UAL.O, Delta Air Lines DAL.N and American Airlines AAL.O also tumbled. By Chuck Mikolajczak NEW YORK, Nov 26 (Reuters) - U.S. stocks dropped on Friday, with the Dow .DJI and S&P 500 .SPX suffering their biggest one-day percentage drops in months, and pandemic-hit sectors that have benefited from a reopening falling sharply after a new and potentially vaccine-resistant coronavirus mutation was found. The NYSE Arca Airline index .XAL saw its biggest one-day percentage decline in over a year.
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Cruise operators Carnival Corp CCL.N, Royal Caribbean Cruises RCL.N and Norwegian Cruise Line NCLH.K each plunged more than 10%, while shares in United Airlines UAL.O, Delta Air Lines DAL.N and American Airlines AAL.O also tumbled. By Chuck Mikolajczak NEW YORK, Nov 26 (Reuters) - U.S. stocks dropped on Friday, with the Dow .DJI and S&P 500 .SPX suffering their biggest one-day percentage drops in months, and pandemic-hit sectors that have benefited from a reopening falling sharply after a new and potentially vaccine-resistant coronavirus mutation was found. Elevated U.S. inflation, coupled with strong economic data and the renomination of Jerome Powell as the Federal Reserve chair by U.S. President Joe Biden, had fueled expectations the central bank may have to hike interest rates earlier than it had been forecasting.
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Cruise operators Carnival Corp CCL.N, Royal Caribbean Cruises RCL.N and Norwegian Cruise Line NCLH.K each plunged more than 10%, while shares in United Airlines UAL.O, Delta Air Lines DAL.N and American Airlines AAL.O also tumbled. By Chuck Mikolajczak NEW YORK, Nov 26 (Reuters) - U.S. stocks dropped on Friday, with the Dow .DJI and S&P 500 .SPX suffering their biggest one-day percentage drops in months, and pandemic-hit sectors that have benefited from a reopening falling sharply after a new and potentially vaccine-resistant coronavirus mutation was found. Retailers fell as Black Friday, the start of the holiday shopping season, kicked off as the new variant fueled concerns about low store traffic and inventory issues.
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4011.0
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2021-11-26 00:00:00 UTC
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Why Airline Stocks Are Tumbling Today
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AAL
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https://www.nasdaq.com/articles/why-airline-stocks-are-tumbling-today
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nan
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nan
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What happened
A new COVID-19 variant discovered in South Africa has markets rattled, and airline stocks are selling off more than most. Shares of Delta Air Lines (NYSE: DAL), Southwest Airlines (NYSE: LUV), American Airlines Holdings (NASDAQ: AAL), United Airlines Holdings (NASDAQ: UAL), JetBlue Airways (NASDAQ: JBLU), Hawaiian Holdings (NASDAQ: HA), and Spirit Airlines (NYSE: SAVE) all traded down by as much as 10% in Friday's abbreviated market session.
So what
Airline stocks endured a miserable 2020 as the pandemic brought global air travel to a virtual halt. There's been a gradual recovery in 2021 thanks to the arrival of effective COVID-19 vaccines, but the airlines remain in a perilous state. The industry is still struggling to regain profitability, and most carriers are now saddled with significant amounts of new debt that they took on to carry them through the worst of the slowdown.
Image source: Getty Images.
The last thing those companies need right now is a return to the days of pandemic-necessitated lockdowns and travel restrictions. But this new COVID-19 variant threatens just that. On Thursday, South Africa's health minister announced the discovery of a new variant that seems to be spreading rapidly.
During a briefing on the variant, scientists said it has an unusually high number of mutations, raising fears that current vaccines might be less effective against it. If so, governments worldwide might need to reimpose restrictions similar to those they instituted in the spring of 2020.
Even if such an intense response is found not to be necessary, fears about the new variant are likely to crimp demand for travel, potentially delaying the airline industry's recovery.
Now what
It is important to note that at this point, the experts are just beginning to research this variant, and much about it remains to be discovered. It could be as bad as they fear, or the current COVID-19 vaccines could prove to be largely effective at preventing infections and serious cases. But regardless of whether the available vaccines work on this variant, we've come a long way in our ability to treat and prevent COVID-19, and progress continues on medicines designed to make the virus less lethal.
Panic selling based on headlines is hardly ever a good idea, but this new variant is certainly a risk to the airline recovery. If nothing else, it could push many carriers' return to profitability into 2023 or beyond. The airlines have shown themselves to be more resilient than investors feared, and bankruptcies among U.S. carriers still seem unlikely, even in light of this new risk.
For those who have strong enough stomachs to ride out this period of turbulence, Delta and Southwest are the best choices among airline stocks to recover ahead of the pack and thrive when travel demand eventually recovers. But anyone going Black Friday bargain-hunting on Wall Street should be aware that the airline industry's recovery could be a multiyear process, and even the best names will continue to face sell-offs until we get some more positive news about which direction the pandemic is going.
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Lou Whiteman owns shares of Delta Air Lines and Spirit Airlines. The Motley Fool owns shares of and recommends Spirit Airlines. The Motley Fool recommends Delta Air Lines, Hawaiian Holdings, JetBlue Airways, and Southwest Airlines. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shares of Delta Air Lines (NYSE: DAL), Southwest Airlines (NYSE: LUV), American Airlines Holdings (NASDAQ: AAL), United Airlines Holdings (NASDAQ: UAL), JetBlue Airways (NASDAQ: JBLU), Hawaiian Holdings (NASDAQ: HA), and Spirit Airlines (NYSE: SAVE) all traded down by as much as 10% in Friday's abbreviated market session. Even if such an intense response is found not to be necessary, fears about the new variant are likely to crimp demand for travel, potentially delaying the airline industry's recovery. But regardless of whether the available vaccines work on this variant, we've come a long way in our ability to treat and prevent COVID-19, and progress continues on medicines designed to make the virus less lethal.
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Shares of Delta Air Lines (NYSE: DAL), Southwest Airlines (NYSE: LUV), American Airlines Holdings (NASDAQ: AAL), United Airlines Holdings (NASDAQ: UAL), JetBlue Airways (NASDAQ: JBLU), Hawaiian Holdings (NASDAQ: HA), and Spirit Airlines (NYSE: SAVE) all traded down by as much as 10% in Friday's abbreviated market session. See the 10 stocks *Stock Advisor returns as of November 10, 2021 Lou Whiteman owns shares of Delta Air Lines and Spirit Airlines. The Motley Fool recommends Delta Air Lines, Hawaiian Holdings, JetBlue Airways, and Southwest Airlines.
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Shares of Delta Air Lines (NYSE: DAL), Southwest Airlines (NYSE: LUV), American Airlines Holdings (NASDAQ: AAL), United Airlines Holdings (NASDAQ: UAL), JetBlue Airways (NASDAQ: JBLU), Hawaiian Holdings (NASDAQ: HA), and Spirit Airlines (NYSE: SAVE) all traded down by as much as 10% in Friday's abbreviated market session. What happened A new COVID-19 variant discovered in South Africa has markets rattled, and airline stocks are selling off more than most. See the 10 stocks *Stock Advisor returns as of November 10, 2021 Lou Whiteman owns shares of Delta Air Lines and Spirit Airlines.
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Shares of Delta Air Lines (NYSE: DAL), Southwest Airlines (NYSE: LUV), American Airlines Holdings (NASDAQ: AAL), United Airlines Holdings (NASDAQ: UAL), JetBlue Airways (NASDAQ: JBLU), Hawaiian Holdings (NASDAQ: HA), and Spirit Airlines (NYSE: SAVE) all traded down by as much as 10% in Friday's abbreviated market session. What happened A new COVID-19 variant discovered in South Africa has markets rattled, and airline stocks are selling off more than most. If nothing else, it could push many carriers' return to profitability into 2023 or beyond.
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4012.0
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2021-11-26 00:00:00 UTC
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From cruise operators to airlines: 'Reopening' stocks tumble on variant fears
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AAL
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https://www.nasdaq.com/articles/from-cruise-operators-to-airlines%3A-reopening-stocks-tumble-on-variant-fears
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By Akash Sriram
Nov 26 (Reuters) - Companies benefiting from this year's economic reopening, including AMC Entertainment, United Airlines and Carnival Corp, were hammered on Friday by fears over a new and possibly-vaccine resistant coronavirus variant.
The variant, discovered in South Africa, prompted several countries to tighten border controls and investors to dump Asian and European equities for safer assets.
Trading before the bell showed U.S. stocks were set to join the selloff, with carriers United UAL.O, Delta Air DAL.N and American Airlines AAL.O losing between 8% and 9%.
Hotel chains Hyatt H.N, Marriott MAR.O and Hilton HLT.N fell between 4.7% and 6%, while cruise operators Carnival CCL.N, Royal Caribbean Cruises RCL.N and Norwegian Cruise Line NCLH.K plunged 10% each. Theater chain AMC AMC.N lost 6.2%.
Little is known of the variant but scientists say it has an unusual combination of mutations, may be able to evade immune responses and could be more transmissible.
"The economic recovery has been quite impressive and the one thing that could knock it over completely would be a more dangerous variant. Time will tell how worried we should be, but investors are selling in front of potential bad news," said Ryan Detrick, senior market strategist at LPL Financial.
The news of the variant, however, sparked a rally in last year's stay-at-home darlings such as fitness company Peloton PTON.O, streaming giant Netflix NFLX.O and Zoom Video Communications ZM.O, sending them up between 6% and 9%.
"Investment gods have given the late-to-sell investors a second opportunity to do so because the stocks that did well in the COVID lockdown, like Peloton or Zoom, are probably going to do well once again," said Sam Stovall, chief investment strategist at CFRA Research.
(Reporting by Akash Sriram, Subrat Patnaik, Sruthi Shankar and Bansari Mayur Kamdar in Bengaluru; Editing by Aditya Soni)
((Akash.Sriram@thomsonreuters.com; www.twitter.com/hoodieonveshti))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Trading before the bell showed U.S. stocks were set to join the selloff, with carriers United UAL.O, Delta Air DAL.N and American Airlines AAL.O losing between 8% and 9%. By Akash Sriram Nov 26 (Reuters) - Companies benefiting from this year's economic reopening, including AMC Entertainment, United Airlines and Carnival Corp, were hammered on Friday by fears over a new and possibly-vaccine resistant coronavirus variant. The variant, discovered in South Africa, prompted several countries to tighten border controls and investors to dump Asian and European equities for safer assets.
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Trading before the bell showed U.S. stocks were set to join the selloff, with carriers United UAL.O, Delta Air DAL.N and American Airlines AAL.O losing between 8% and 9%. By Akash Sriram Nov 26 (Reuters) - Companies benefiting from this year's economic reopening, including AMC Entertainment, United Airlines and Carnival Corp, were hammered on Friday by fears over a new and possibly-vaccine resistant coronavirus variant. Theater chain AMC AMC.N lost 6.2%.
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Trading before the bell showed U.S. stocks were set to join the selloff, with carriers United UAL.O, Delta Air DAL.N and American Airlines AAL.O losing between 8% and 9%. By Akash Sriram Nov 26 (Reuters) - Companies benefiting from this year's economic reopening, including AMC Entertainment, United Airlines and Carnival Corp, were hammered on Friday by fears over a new and possibly-vaccine resistant coronavirus variant. Hotel chains Hyatt H.N, Marriott MAR.O and Hilton HLT.N fell between 4.7% and 6%, while cruise operators Carnival CCL.N, Royal Caribbean Cruises RCL.N and Norwegian Cruise Line NCLH.K plunged 10% each.
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Trading before the bell showed U.S. stocks were set to join the selloff, with carriers United UAL.O, Delta Air DAL.N and American Airlines AAL.O losing between 8% and 9%. By Akash Sriram Nov 26 (Reuters) - Companies benefiting from this year's economic reopening, including AMC Entertainment, United Airlines and Carnival Corp, were hammered on Friday by fears over a new and possibly-vaccine resistant coronavirus variant. The variant, discovered in South Africa, prompted several countries to tighten border controls and investors to dump Asian and European equities for safer assets.
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4013.0
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2021-11-26 00:00:00 UTC
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Pre-Market Most Active for Nov 26, 2021 : SQQQ, RLX, DIDI, PFE, CCL, VTRS, AAL, LCID, PDD, QQQ, PBR, JNJ
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AAL
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https://www.nasdaq.com/articles/pre-market-most-active-for-nov-26-2021-%3A-sqqq-rlx-didi-pfe-ccl-vtrs-aal-lcid-pdd-qqq-pbr
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The NASDAQ 100 Pre-Market Indicator is down -173.96 to 16,193.85. The total Pre-Market volume is currently 55,376,781 shares traded.
The following are the most active stocks for the pre-market session:
ProShares UltraPro Short QQQ (SQQQ) is +0.18 at $6.30, with 8,419,188 shares traded. This represents a 10.72% increase from its 52 Week Low.
RLX Technology Inc. (RLX) is -0.52 at $4.89, with 5,005,980 shares traded. RLX's current last sale is 24.45% of the target price of $20.
DiDi Global Inc. (DIDI) is -0.35 at $7.76, with 3,606,892 shares traded. DIDI's current last sale is 31.04% of the target price of $25.
Pfizer, Inc. (PFE) is +3.58 at $54.47, with 3,169,798 shares traded. PFE's current last sale is 113.48% of the target price of $48.
Carnival Corporation (CCL) is -2.02 at $18.14, with 2,826,266 shares traded. CCL's current last sale is 72.56% of the target price of $25.
Viatris Inc. (VTRS) is -0.16 at $12.89, with 2,776,259 shares traded. VTRS's current last sale is 67.84% of the target price of $19.
American Airlines Group, Inc. (AAL) is -1.4 at $18.06, with 2,394,135 shares traded. AAL's current last sale is 92.62% of the target price of $19.5.
Lucid Group, Inc. (LCID) is -3.38 at $49.19, with 2,174,892 shares traded. As reported by Zacks, the current mean recommendation for LCID is in the "strong buy range".
Pinduoduo Inc. (PDD) is -13.56 at $67.80, with 2,132,951 shares traded. As reported by Zacks, the current mean recommendation for PDD is in the "buy range".
Invesco QQQ Trust, Series 1 (QQQ) is -3.6 at $395.16, with 1,938,666 shares traded. This represents a 34.14% increase from its 52 Week Low.
Petroleo Brasileiro S.A.- Petrobras (PBR) is +0.13 at $10.61, with 1,770,394 shares traded. As reported by Zacks, the current mean recommendation for PBR is in the "buy range".
Johnson & Johnson (JNJ) is -0.85 at $159.39, with 1,456,868 shares traded. As reported by Zacks, the current mean recommendation for JNJ is in the "buy range".
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines Group, Inc. (AAL) is -1.4 at $18.06, with 2,394,135 shares traded. AAL's current last sale is 92.62% of the target price of $19.5. ProShares UltraPro Short QQQ (SQQQ) is +0.18 at $6.30, with 8,419,188 shares traded.
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American Airlines Group, Inc. (AAL) is -1.4 at $18.06, with 2,394,135 shares traded. AAL's current last sale is 92.62% of the target price of $19.5. As reported by Zacks, the current mean recommendation for PDD is in the "buy range".
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American Airlines Group, Inc. (AAL) is -1.4 at $18.06, with 2,394,135 shares traded. AAL's current last sale is 92.62% of the target price of $19.5. The total Pre-Market volume is currently 55,376,781 shares traded.
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American Airlines Group, Inc. (AAL) is -1.4 at $18.06, with 2,394,135 shares traded. AAL's current last sale is 92.62% of the target price of $19.5. The NASDAQ 100 Pre-Market Indicator is down -173.96 to 16,193.85.
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4014.0
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2021-11-26 00:00:00 UTC
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New "Omicron" COVID Variant Rattles Stock Markets
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AAL
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https://www.nasdaq.com/articles/new-omicron-covid-variant-rattles-stock-markets
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nan
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A new variant of the COVID-19 virus identified recently in Africa put a scare into most risk assets during Friday's holiday-shortened trading session.
The variant – B.1.1.529, which the World Health Organization has labeled "omicron" – was first identified in either Botswana or South Africa, according to conflicting reports, and has since been detected in Hong Kong as well.
SEE MORE The 30 Best Stocks of the Past 30 Years
Little is known about the virus, which South Africa fears might be responsible for a recent spike in cases, from 200 daily recently to 2,465 on Thursday. However, the WHO labeled this strain a "variant of concern" (VOC) and said Friday that "preliminary evidence suggests an increased risk of reinfection with this variant, as compared to other VOCs."
The sudden burst of uncertainty sent markets reeling.
The Dow Jones Industrial Average finished Friday off 905 points (-2.5%), while the S&P 500 closed down by 2.3% and the Nasdaq Composite was lower by 2.2%.
"There has been a substantial market reaction, with travel-related stocks in particular having been heavily affected," Deutsche Bank Research Analyst Jonathan Jayarajan said in an early Friday note. "That comes as countries have moved to tighten restrictions, with the U.K. already adding six countries to its red list, and European Commission President von der Leyen proposing that the emergency brake be activated to stop air travel from southern Africa."
Examples of travel stocks that were hit hard Friday include Carnival (CCL, -11.0%), American Airlines (AAL, -8.8%), United Airlines (UAL, -9.6%) and Expedia (EXPE, -9.5%).
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"Other assets have also been affected, with investors moving rapidly into safe havens such as sovereign bonds, just as they move to push back their expected timing of future rate hikes from central banks as well," Jayarajan added. "Oil prices have moved sharply lower on the prospect of weaker growth and lower mobility, and West Texas Intermediate (U.S. crude oil) is back beneath $75 per barrel at the time of writing."
Even cryptocurrencies reminded markets that they too are risk assets; Bitcoin, for instance, was off 8.1% to $54,246.80.
The CBOE Volatility Index, meanwhile, shot 47.8% higher to 27.46 – a level last seen in May of this year.
SEE MORE How Do I Spend My Bitcoin? (And Where?)
And naturally, several assets that were popular during the 2020's COVID crash were en vogue Friday. COVID vaccine makers Pfizer (PFE, +6.1%) and Moderna (MRNA, +20.6%) jumped, as did popular stay-at-home plays including Zoom Communications (ZM, +5.7%) and Peloton Interactive (PTON, +5.7%).
Quick Takeaways
The omicron COVID variant certainly bears watching, as it could trigger even more worldwide shutdowns and slam the progress of economic recoveries around the globe. In turn, that could also prompt the world's central banks (including the Federal Reserve) to reconsider recent adjustments to tighten monetary policy and delay future rate hikes.
Other variants, such as the lambda and mu strains, weren't found to be any more transmissible or dangerous than the delta variant. A similar development with omicron COVID could see this downturn reverse course just as quickly.
On the other hand, lambda and mu never received the "VOC" designation, which is given to strains that the WHO says has demonstrated one or more of the following changes at "a degree of global public health significance: Increase in transmissibility or detrimental change in COVID-19 epidemiology; or increase in virulence or change in clinical disease presentation; or decrease in effectiveness of public health and social measures or available diagnostics, vaccines, therapeutics."
"The economic recovery has been quite impressive and the one thing that could knock it over completely would be a more dangerous variant," says Ryan Detrick, chief market strategist for broker-dealer LPL Financial. "Time will tell how worried we should be, but investors are selling in front of potential bad news."
SEE MORE The 12 Best Healthcare Stocks to Buy for 2022
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Examples of travel stocks that were hit hard Friday include Carnival (CCL, -11.0%), American Airlines (AAL, -8.8%), United Airlines (UAL, -9.6%) and Expedia (EXPE, -9.5%). COVID vaccine makers Pfizer (PFE, +6.1%) and Moderna (MRNA, +20.6%) jumped, as did popular stay-at-home plays including Zoom Communications (ZM, +5.7%) and Peloton Interactive (PTON, +5.7%). In turn, that could also prompt the world's central banks (including the Federal Reserve) to reconsider recent adjustments to tighten monetary policy and delay future rate hikes.
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Examples of travel stocks that were hit hard Friday include Carnival (CCL, -11.0%), American Airlines (AAL, -8.8%), United Airlines (UAL, -9.6%) and Expedia (EXPE, -9.5%). A new variant of the COVID-19 virus identified recently in Africa put a scare into most risk assets during Friday's holiday-shortened trading session. "Other assets have also been affected, with investors moving rapidly into safe havens such as sovereign bonds, just as they move to push back their expected timing of future rate hikes from central banks as well," Jayarajan added.
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Examples of travel stocks that were hit hard Friday include Carnival (CCL, -11.0%), American Airlines (AAL, -8.8%), United Airlines (UAL, -9.6%) and Expedia (EXPE, -9.5%). A new variant of the COVID-19 virus identified recently in Africa put a scare into most risk assets during Friday's holiday-shortened trading session. However, the WHO labeled this strain a "variant of concern" (VOC) and said Friday that "preliminary evidence suggests an increased risk of reinfection with this variant, as compared to other VOCs."
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Examples of travel stocks that were hit hard Friday include Carnival (CCL, -11.0%), American Airlines (AAL, -8.8%), United Airlines (UAL, -9.6%) and Expedia (EXPE, -9.5%). A new variant of the COVID-19 virus identified recently in Africa put a scare into most risk assets during Friday's holiday-shortened trading session. However, the WHO labeled this strain a "variant of concern" (VOC) and said Friday that "preliminary evidence suggests an increased risk of reinfection with this variant, as compared to other VOCs."
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4015.0
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2021-11-26 00:00:00 UTC
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US STOCKS-Dow set for 2% fall on fears over new virus variant
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AAL
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https://www.nasdaq.com/articles/us-stocks-dow-set-for-2-fall-on-fears-over-new-virus-variant
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By Medha Singh and Devik Jain
Nov 26 (Reuters) - U.S. stock index futures slumped on Friday, with travel, bank and commodity-linked stocks bearing the brunt of a selloff triggered by the discovery of a new and possibly vaccine-resistant coronavirus variant.
Southwest Airlines LUV.N, American Airlines AAL.O, United Airlines UAL.O dropped between 5.8% and 8.9% in premarket trading, while cruiseliners Carnival Corp CCL.N, Royal Caribbean Cruises RCL.N and Norwegian Cruise Line NCLH.K plunged 10% each.
Global stock markets sold off sharply after reports that the new variant detected in South Africa prompted the European Union, Britain and India among others to announce stricter border controls.
Little is known of the variant, but scientists say it has an unusual combination of mutations, may be able to evade immune responses and could be more transmissible.
A top U.S. infectious disease official said no decision had been made on a U.S. travel ban, but said it was a possibility.
Wall Street lenders Bank of America Corp BAC.N, Citigroup Inc C.N, JPMorgan Chase & Co JPM.N, Goldman Sachs GS.N, Wells Fargo & Co WFC.N and Morgan Stanley MS.N slipped between 3% and 4%, as investors pared back bets of faster U.S. interest rate hikes. US/
Futures tracking the domestically focused Russell 2000 small-cap index RTYcv1 tumbled 3.4%, looking at its worst day since June 2020.
"The new variant news has brought with it a 'sell first and ask questions later' mentality," said Ryan Detrick, chief market strategist at LPL Financial. "The economic recovery has been quite impressive and the one thing that could knock it over completely would be a more dangerous variant."
At 8:00 a.m. ET, Dow e-minis 1YMcv1 were down 782 points, or 2.19%, S&P 500 e-minis EScv1 were down 79.25 points, or 1.69%, and Nasdaq 100 e-minis NQcv1 were down 171.5 points, or 1.05%.
The CBOE volatility index .VIX, popularly known as Wall Street's fear gauge, jumped to its highest level since Sept 20.
Elevated U.S. inflation, coupled with strong economic data and the renomination of Jerome Powell as the Fed chair by President Joe Biden, had prompted market participants to raise their bets on early interest rate hikes next year, knocking U.S. stocks off their record levels this week.
"Because we've recently hit new highs in the S&P and other indices, it could give investors reasons to try to lock in profits, at least for the near term, if not for the rest of the year," said Sam Stovall, chief investment strategist at CFRA Research in New York.
"The stocks that did well in the COVID lockdown, like Peloton or Zoom, are probably going to do well once again."
"Stay-at-home" names such as Netflix Inc NFLX.O, Peloton Interactive PTON.O and Zoom Video Communications ZM.O jumped between 2.5% and 8.0%.
Oil majors Exxon Mobil Corp XOM.N and Chevron Corp CVX.N dropped 4.4% and 3.7%, respectively, as crude prices tumbled. O/R
Some vaccine makers including Pfizer Inc PFE.N and partner BioNTech SE BNTX.O as well as Moderna Inc MRNA.O climbed between 5.8% and 9.0%.
Trading volumes are expected to be light in the short trading session as markets close at 1:00 p.m. ET, a day after the Thanksgiving holiday.
(Reporting by Medha Singh, Devik Jain and Bansari Mayur Kamdar in Bengaluru; Editing by Maju Samuel)
((Medha.Singh@thomsonreuters.com; within U.S. +1646 223 8780, outside U.S. +91 80 6182 2802; Twitter: https://twitter.com/medhasinghs;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Southwest Airlines LUV.N, American Airlines AAL.O, United Airlines UAL.O dropped between 5.8% and 8.9% in premarket trading, while cruiseliners Carnival Corp CCL.N, Royal Caribbean Cruises RCL.N and Norwegian Cruise Line NCLH.K plunged 10% each. Wall Street lenders Bank of America Corp BAC.N, Citigroup Inc C.N, JPMorgan Chase & Co JPM.N, Goldman Sachs GS.N, Wells Fargo & Co WFC.N and Morgan Stanley MS.N slipped between 3% and 4%, as investors pared back bets of faster U.S. interest rate hikes. Elevated U.S. inflation, coupled with strong economic data and the renomination of Jerome Powell as the Fed chair by President Joe Biden, had prompted market participants to raise their bets on early interest rate hikes next year, knocking U.S. stocks off their record levels this week.
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Southwest Airlines LUV.N, American Airlines AAL.O, United Airlines UAL.O dropped between 5.8% and 8.9% in premarket trading, while cruiseliners Carnival Corp CCL.N, Royal Caribbean Cruises RCL.N and Norwegian Cruise Line NCLH.K plunged 10% each. By Medha Singh and Devik Jain Nov 26 (Reuters) - U.S. stock index futures slumped on Friday, with travel, bank and commodity-linked stocks bearing the brunt of a selloff triggered by the discovery of a new and possibly vaccine-resistant coronavirus variant. Elevated U.S. inflation, coupled with strong economic data and the renomination of Jerome Powell as the Fed chair by President Joe Biden, had prompted market participants to raise their bets on early interest rate hikes next year, knocking U.S. stocks off their record levels this week.
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Southwest Airlines LUV.N, American Airlines AAL.O, United Airlines UAL.O dropped between 5.8% and 8.9% in premarket trading, while cruiseliners Carnival Corp CCL.N, Royal Caribbean Cruises RCL.N and Norwegian Cruise Line NCLH.K plunged 10% each. By Medha Singh and Devik Jain Nov 26 (Reuters) - U.S. stock index futures slumped on Friday, with travel, bank and commodity-linked stocks bearing the brunt of a selloff triggered by the discovery of a new and possibly vaccine-resistant coronavirus variant. Global stock markets sold off sharply after reports that the new variant detected in South Africa prompted the European Union, Britain and India among others to announce stricter border controls.
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Southwest Airlines LUV.N, American Airlines AAL.O, United Airlines UAL.O dropped between 5.8% and 8.9% in premarket trading, while cruiseliners Carnival Corp CCL.N, Royal Caribbean Cruises RCL.N and Norwegian Cruise Line NCLH.K plunged 10% each. By Medha Singh and Devik Jain Nov 26 (Reuters) - U.S. stock index futures slumped on Friday, with travel, bank and commodity-linked stocks bearing the brunt of a selloff triggered by the discovery of a new and possibly vaccine-resistant coronavirus variant. Elevated U.S. inflation, coupled with strong economic data and the renomination of Jerome Powell as the Fed chair by President Joe Biden, had prompted market participants to raise their bets on early interest rate hikes next year, knocking U.S. stocks off their record levels this week.
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4016.0
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2021-11-24 00:00:00 UTC
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Thanksgiving travel rush tests U.S. carriers
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AAL
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https://www.nasdaq.com/articles/thanksgiving-travel-rush-tests-u.s.-carriers
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By Rajesh Kumar Singh
CHICAGO, Nov 24 (Reuters) - Flights and airports across the United States are expected to be packed on Wednesday as millions of Americans fly to visit their families for Thanksgiving holiday.
The Transportation Security Administration (TSA) expects to screen about 20 million air passengers during the travel period, compared with nearly 26 million in the same period in 2019. On Monday, the TSA screened 2.1 million U.S. air passengers, the fifth consecutive day with checkpoint volume topping 2 million.
The holiday weekend is a test for carriers after a spate of flight cancellations marred travel over the summer. One in five Americans are concerned about delays and cancellations, according to a new American Pecans/YouGov survey.
But with the weather expected to remain calm for Thanksgiving on Thursday, airlines are sounding confident.
"We're staffed and ready to get our customers to where they need to go safely, reliably and enjoyably," a Delta Air Lines DAL.N spokesperson said.
The Atlanta-based carrier has hired 8,000 new employees including 1,500 reservation agents. American Airlines AAL.O has recalled 1,800 flight attendants this month, while Southwest Airlines LUV.N has hired more than 4,500 employees in the past few months.
American, Southwest and JetBlue JBLU.O are also offering bonuses, higher pay and other incentives to ensure they have enough workers. Southwest has cut flight schedules to enhance ontime performance and bolstered its customer relations department.
The Thanksgiving week is shaping up to be the busiest travel week in two years as rising COVID-19 vaccination rates have made Americans more confident to travel again.
Travel group AAA estimates 53.4 million people will travel for the Thanksgiving holiday, up 13% from 2020, with air travel recovering to about 91% of pre-pandemic levels.
Rising gas prices are the biggest concern of American this holiday season, the YouGov survey found.
(Reporting by Rajesh Kumar Singh; Editing by Stephen Coates)
((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.
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American Airlines AAL.O has recalled 1,800 flight attendants this month, while Southwest Airlines LUV.N has hired more than 4,500 employees in the past few months. By Rajesh Kumar Singh CHICAGO, Nov 24 (Reuters) - Flights and airports across the United States are expected to be packed on Wednesday as millions of Americans fly to visit their families for Thanksgiving holiday. Southwest has cut flight schedules to enhance ontime performance and bolstered its customer relations department.
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American Airlines AAL.O has recalled 1,800 flight attendants this month, while Southwest Airlines LUV.N has hired more than 4,500 employees in the past few months. The Transportation Security Administration (TSA) expects to screen about 20 million air passengers during the travel period, compared with nearly 26 million in the same period in 2019. On Monday, the TSA screened 2.1 million U.S. air passengers, the fifth consecutive day with checkpoint volume topping 2 million.
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American Airlines AAL.O has recalled 1,800 flight attendants this month, while Southwest Airlines LUV.N has hired more than 4,500 employees in the past few months. By Rajesh Kumar Singh CHICAGO, Nov 24 (Reuters) - Flights and airports across the United States are expected to be packed on Wednesday as millions of Americans fly to visit their families for Thanksgiving holiday. The Thanksgiving week is shaping up to be the busiest travel week in two years as rising COVID-19 vaccination rates have made Americans more confident to travel again.
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American Airlines AAL.O has recalled 1,800 flight attendants this month, while Southwest Airlines LUV.N has hired more than 4,500 employees in the past few months. One in five Americans are concerned about delays and cancellations, according to a new American Pecans/YouGov survey. Travel group AAA estimates 53.4 million people will travel for the Thanksgiving holiday, up 13% from 2020, with air travel recovering to about 91% of pre-pandemic levels.
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4017.0
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2021-11-23 00:00:00 UTC
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FOCUS-From pilots to ramp agents - U.S. airlines go all out to staff up
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AAL
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https://www.nasdaq.com/articles/focus-from-pilots-to-ramp-agents-u.s.-airlines-go-all-out-to-staff-up-0
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nan
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nan
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By Rajesh Kumar Singh
CHICAGO, Nov 23 (Reuters) - From offering premium pay to hefty signing bonuses or poaching workers from other airlines, American carriers are scrambling to ramp up staffing for the holiday season and prevent disruptions that marred air travel this summer.
After reducing headcount by thousands during the depths of the pandemic, the industry is grappling with shortages of pilots, flight attendants and customer service agents.
Critics say the staff crunch is of the airline industry's own making as the deep job cuts last year, despite an infusion of $54 billion in federal aid to help cover payroll expenses, left it ill-equipped to handle the snapback in air travel.
Airlines have said the bailouts saved thousands of jobs, prevented bankruptcy and put them in a position to support the economy's recovery from the pandemic.
A Delta Air Lines DAL.N spokesperson said the company had no furloughs or job losses related to the pandemic. However, the company did have about 18,000 staff departures last year in the form of retirements or voluntary separations.
With willing workers in short supply across the United States and companies frantically vying for them, carriers are being forced to spend more to attract talent.
"The reality is that the hiring environment has changed as a result of the pandemic," American Airlines' AAL.O chief operating officer, David Seymour, told employees in a memo this month.
Piedmont Airlines, American's subsidiary, is trying to lure pilots with a $180,000 bonus offer. United Airlines UAL.O is offering a $5,000 signing bonus for a ramp agent position in Boston.
Spirit Airlines SAVE.N has bumped up wages for its ramp agents by 30%. The ultra-low-cost carrier is offering a one-time graduation bonus of $1,250 and up to $4,500 a year in tuition reimbursement to flight attendants.
The rush to hire in a tight labor market is driving up costs at a time when soaring jet fuel prices and higher airport charges are also squeezing profits.
Southwest Airlines' LUV.N wage expense as a percentage of revenue is up by 14 points this year versus 2019. There have been similar increases in salary costs at other carriers including United and American.
Yet headcount at U.S. scheduled air carriers in October was 14.3% below the pre-pandemic peak. By contrast, employment at restaurants and bars, struck equally hard by pandemic lockdowns, is just 6.4% below its peak before the COVID-19 outbreak.
FADING ALLURE
Industry experts attribute the sluggish recovery to the fading attraction of jobs with passenger airlines.
Wages for some entry-level airline jobs, particularly low-skilled ones, pale in comparison with those in other industries even as the work has become more challenging.
The situation is worse at regional carriers, which operate 43% of the flights of American, United and Delta. These companies provide connectivity to low-density networks, but their pilots and crews are paid far less.
Even at the regional airlines that are subsidiaries of American and Delta, the wage gap is huge.
For example, entry-level flight dispatchers at American earn more than twice the amount made by their counterparts at Piedmont Airlines. There is a similar gap between pay scales at Delta and its regional unit Endeavor Air.
Keturah Johnson, who heads the union for Piedmont's flight attendants, said a lot of workers have been forced to pick up a second job as the wages at the regional carrier are not high enough to cover living costs.
Piedmont's flight attendants last month voted to authorize a strike, demanding better pay and benefits. "We are fighting for a livable wage," said Johnson.
A CRISIS LONG IN THE MAKING
Analysts say the labor crisis was in the making long before COVID-19 hit the industry. They trace its genesis to a wave of bankruptcies and consolidations after the 9/11 attacks, which made carriers too cost-conscious and excessively focused on productivity.
As airlines slimmed down, they became more reliant on employees logging more hours. The Association of Flight Attendants estimates the workload of flight attendants increased by at least 25% after 9/11.
The pandemic-induced plunge in air travel prompted the industry to double down on cost cuts, leaving it with the lowest headcount in more than three decades. Meanwhile, quarantine requirements or illness further depleted its resources.
"COVID was the tipping point," said Henry Harteveldt, founder of travel consultancy Atmosphere Research Group. "It ripped the protective layer of the airline industry and exposed many of its underlying challenges."
Airlines resumed hiring this spring as dipping COVID-19 cases brought passengers back. But the supply of new pilots is limited, and cargo carriers of Amazon.com Inc AMZN.O, United Parcel Service Inc UPS.N and FedEx Corp FDX.N are also vying for them.
Faye Malarkey Black, head of the Regional Airline Association, said the supply of new pilots fell 60% in 2020. This year, it is about 36% below pre-pandemic levels, she said.
Worries about a looming pilot shortage have dogged the industry for years. That did not stop carriers last year from pausing hiring and offering buyouts and retirement packages to thousands of aviators.
SOARING ATTRITION RATE
Faced with a crunch, they are now heavily poaching from regional carriers.
SkyWest Inc SKYW.O, which operates flights for Delta, American and United, last month said its attrition rate is running into double digits.
To be sure, regional airlines have been losing pilots to major carriers for years. But Black said that trend is now "on steroids."
Subodh Karnik, chief executive of Georgia-based ExpressJet Airlines, likened the demand for pilots to the frenzy in the U.S. housing market where houses are getting flooded with offers within days of their listing. He said one-fifth of the pilots at regional airlines are getting snatched away by big passenger and cargo carriers even before they can complete their mandatory training.
Inadequate staffing runs the risk of causing operational meltdowns of the kind that have led to a spate of high-profile flight cancellations in recent months.
Carriers such as American and JetBlue JBLU.O are offering bonuses, higher pay and other incentives to ensure they have enough workers for what is shaping up as the busiest holiday season in two years.
If the shortages persist, Karnik warned that major carriers could stop servicing less profitable routes.
United has decided to drop eight routes in the U.S. Midwest and South from its network. The airline's chief executive, Scott Kirby, told travel news industry website Skift last week that the cuts were the result of a pilot shortage.
"We don't have enough pilots to fly all the airplanes," he said.
(Reporting by Rajesh Kumar Singh in Chicago Editing by Tim Hepher and Matthew Lewis)
((rajeshkumar.singh@thomsonreuters.com; +1-313-484-5370; Reuters Messaging: rajeshkumar.singh.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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"The reality is that the hiring environment has changed as a result of the pandemic," American Airlines' AAL.O chief operating officer, David Seymour, told employees in a memo this month. By Rajesh Kumar Singh CHICAGO, Nov 23 (Reuters) - From offering premium pay to hefty signing bonuses or poaching workers from other airlines, American carriers are scrambling to ramp up staffing for the holiday season and prevent disruptions that marred air travel this summer. Critics say the staff crunch is of the airline industry's own making as the deep job cuts last year, despite an infusion of $54 billion in federal aid to help cover payroll expenses, left it ill-equipped to handle the snapback in air travel.
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"The reality is that the hiring environment has changed as a result of the pandemic," American Airlines' AAL.O chief operating officer, David Seymour, told employees in a memo this month. By Rajesh Kumar Singh CHICAGO, Nov 23 (Reuters) - From offering premium pay to hefty signing bonuses or poaching workers from other airlines, American carriers are scrambling to ramp up staffing for the holiday season and prevent disruptions that marred air travel this summer. United Airlines UAL.O is offering a $5,000 signing bonus for a ramp agent position in Boston.
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"The reality is that the hiring environment has changed as a result of the pandemic," American Airlines' AAL.O chief operating officer, David Seymour, told employees in a memo this month. By Rajesh Kumar Singh CHICAGO, Nov 23 (Reuters) - From offering premium pay to hefty signing bonuses or poaching workers from other airlines, American carriers are scrambling to ramp up staffing for the holiday season and prevent disruptions that marred air travel this summer. Keturah Johnson, who heads the union for Piedmont's flight attendants, said a lot of workers have been forced to pick up a second job as the wages at the regional carrier are not high enough to cover living costs.
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"The reality is that the hiring environment has changed as a result of the pandemic," American Airlines' AAL.O chief operating officer, David Seymour, told employees in a memo this month. The situation is worse at regional carriers, which operate 43% of the flights of American, United and Delta. To be sure, regional airlines have been losing pilots to major carriers for years.
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4018.0
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2021-11-23 00:00:00 UTC
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FOCUS-From pilots to ramp agents - U.S. airlines go all out to staff up
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AAL
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https://www.nasdaq.com/articles/focus-from-pilots-to-ramp-agents-u.s.-airlines-go-all-out-to-staff-up
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nan
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nan
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By Rajesh Kumar Singh
CHICAGO, Nov 23 (Reuters) - From offering premium pay to hefty signing bonuses or poaching workers from other airlines, American carriers are scrambling to ramp up staffing for the holiday season and prevent disruptions that marred air travel this summer.
After sacking thousands of workers during the depths of the pandemic, the industry is grappling with shortages of pilots, flight attendants and customer service agents.
Critics say the staff crunch is of the airline industry's own making as the savage job cuts last year, despite an infusion of $54 billion in federal aid to help cover payroll expenses, left it ill-equipped to handle the snapback in air travel.
With willing workers in short supply across the United States and companies frantically vying for them, carriers are being forced to spend more to attract talent.
"The reality is that the hiring environment has changed as a result of the pandemic," American Airlines' AAL.O chief operating officer, David Seymour, told employees in a memo this month.
Piedmont Airlines, American's subsidiary, is trying to lure pilots with a $180,000 bonus offer. United Airlines UAL.O is offering a $5,000 signing bonus for a ramp agent position in Boston.
Spirit Airlines SAVE.N has bumped up wages for its ramp agents by 30%. The ultra-low-cost carrier is offering a one-time graduation bonus of $1,250 and up to $4,500 a year in tuition reimbursement to flight attendants.
The rush to hire in a tight labor market is driving up costs at a time when soaring jet fuel prices and higher airport charges are also squeezing profits.
Southwest Airlines' LUV.N wage expense as a percentage of revenue is up by 14 points this year versus 2019. There have been similar increases in salary costs at other carriers including United and American.
Yet headcount at U.S. scheduled air carriers in October was 14.3% below the pre-pandemic peak. By contrast, employment at restaurants and bars, struck equally hard by pandemic lockdowns, is just 6.4% below its peak before the COVID-19 outbreak.
FADING ALLURE
Industry experts attribute the sluggish recovery to the fading attraction of jobs with passenger airlines.
Wages for some entry-level airline jobs, particularly low-skilled ones, pale in comparison with those in other industries even as the work has become more challenging.
The situation is worse at regional carriers, which operate 43% of the flights of American, United and Delta Air Lines Inc DAL.N. These companies provide connectivity to low-density networks, but their pilots and crews are paid far less.
Even at the regional airlines that are subsidiaries of American and Delta, the wage gap is huge.
For example, entry-level flight dispatchers at American earn more than twice the amount made by their counterparts at Piedmont Airlines. There is a similar gap between pay scales at Delta and its regional unit Endeavor Air.
Keturah Johnson, who heads the union for Piedmont's flight attendants, said a lot of workers have been forced to pick up a second job as the wages at the regional carrier are not high enough to cover living costs.
Piedmont's flight attendants last month voted to authorize a strike, demanding better pay and benefits. "We are fighting for a livable wage," said Johnson.
A CRISIS LONG IN THE MAKING
Analysts say the labor crisis was in the making long before COVID-19 hit the industry. They trace its genesis to a wave of bankruptcies and consolidations after the 9/11 attacks, which made carriers too cost-conscious and excessively focused on productivity.
As airlines slimmed down, they became more reliant on employees logging more hours. The Association of Flight Attendants estimates the workload of flight attendants increased by at least 25% after 9/11.
The pandemic-induced plunge in air travel prompted the industry to double down on cost cuts, leaving it with the lowest headcount in more than three decades. Meanwhile, quarantine requirements or illness further depleted its resources.
"COVID was the tipping point," said Henry Harteveldt, founder of travel consultancy Atmosphere Research Group. "It ripped the protective layer of the airline industry and exposed many of its underlying challenges."
Airlines resumed hiring this spring as dipping COVID-19 cases brought passengers back. But the supply of new pilots is limited, and cargo carriers of Amazon.com Inc AMZN.O, United Parcel Service Inc UPS.N and FedEx Corp FDX.N are also vying for them.
Faye Malarkey Black, head of the Regional Airline Association, said the supply of new pilots fell 60% in 2020. This year, it is about 36% below pre-pandemic levels, she said.
Worries about a looming pilot shortage have dogged the industry for years. That did not stop carriers last year from pausing hiring and offering buyouts and retirement packages to thousands of aviators.
SOARING ATTRITION RATE
Faced with a crunch, they are now heavily poaching from regional carriers.
SkyWest Inc SKYW.O, which operates flights for Delta, American and United, last month said its attrition rate is running into double digits.
To be sure, regional airlines have been losing pilots to major carriers for years. But Black said that trend is now "on steroids."
Subodh Karnik, chief executive of Georgia-based ExpressJet Airlines, likened the demand for pilots to the frenzy in the U.S. housing market where houses are getting flooded with offers within days of their listing. He said one-fifth of the pilots at regional airlines are getting snatched away by big passenger and cargo carriers even before they can complete their mandatory training.
Inadequate staffing runs the risk of causing operational meltdowns of the kind that have led to a spate of high-profile flight cancellations in recent months.
Carriers such as American and JetBlue JBLU.O are offering bonuses, higher pay and other incentives to ensure they have enough workers for what is shaping up as the busiest holiday season in two years.
If the shortages persist, Karnik warned that major carriers could stop servicing less profitable routes.
United has decided to drop eight routes in the U.S. Midwest and South from its network. The airline's chief executive, Scott Kirby, told travel news industry website Skift last week that the cuts were the result of a pilot shortage.
"We don't have enough pilots to fly all the airplanes," he said.
(Reporting by Rajesh Kumar Singh in Chicago Editing by Tim Hepher and Matthew Lewis)
((rajeshkumar.singh@thomsonreuters.com; +1-313-484-5370; Reuters Messaging: rajeshkumar.singh.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
"The reality is that the hiring environment has changed as a result of the pandemic," American Airlines' AAL.O chief operating officer, David Seymour, told employees in a memo this month. By Rajesh Kumar Singh CHICAGO, Nov 23 (Reuters) - From offering premium pay to hefty signing bonuses or poaching workers from other airlines, American carriers are scrambling to ramp up staffing for the holiday season and prevent disruptions that marred air travel this summer. Critics say the staff crunch is of the airline industry's own making as the savage job cuts last year, despite an infusion of $54 billion in federal aid to help cover payroll expenses, left it ill-equipped to handle the snapback in air travel.
|
"The reality is that the hiring environment has changed as a result of the pandemic," American Airlines' AAL.O chief operating officer, David Seymour, told employees in a memo this month. By Rajesh Kumar Singh CHICAGO, Nov 23 (Reuters) - From offering premium pay to hefty signing bonuses or poaching workers from other airlines, American carriers are scrambling to ramp up staffing for the holiday season and prevent disruptions that marred air travel this summer. SkyWest Inc SKYW.O, which operates flights for Delta, American and United, last month said its attrition rate is running into double digits.
|
"The reality is that the hiring environment has changed as a result of the pandemic," American Airlines' AAL.O chief operating officer, David Seymour, told employees in a memo this month. By Rajesh Kumar Singh CHICAGO, Nov 23 (Reuters) - From offering premium pay to hefty signing bonuses or poaching workers from other airlines, American carriers are scrambling to ramp up staffing for the holiday season and prevent disruptions that marred air travel this summer. Keturah Johnson, who heads the union for Piedmont's flight attendants, said a lot of workers have been forced to pick up a second job as the wages at the regional carrier are not high enough to cover living costs.
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"The reality is that the hiring environment has changed as a result of the pandemic," American Airlines' AAL.O chief operating officer, David Seymour, told employees in a memo this month. Critics say the staff crunch is of the airline industry's own making as the savage job cuts last year, despite an infusion of $54 billion in federal aid to help cover payroll expenses, left it ill-equipped to handle the snapback in air travel. SkyWest Inc SKYW.O, which operates flights for Delta, American and United, last month said its attrition rate is running into double digits.
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4019.0
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2021-11-22 00:00:00 UTC
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American Airlines, JetBlue ask court to throw out U.S. antitrust suit
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AAL
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https://www.nasdaq.com/articles/american-airlines-jetblue-ask-court-to-throw-out-u.s.-antitrust-suit-0
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nan
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nan
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Adds Justice Department declining to comment, background
WASHINGTON, Nov 22 (Reuters) - American Airlines AAL.O and JetBlue Airways Corp JBLU.O asked a U.S. judge on Monday to dismiss an antitrust lawsuit filed by the Justice Department and six states over the company's "Northeast Alliance" partnership.
The suit filed in September alleges the deal would lead to higher fares in busy northeastern U.S. airports and seeks to unwind the alliance. The airlines said Monday the alliance has been in place for nine months but the suit does "not allege that it has caused a single higher price, any reduction in quality or the slightest reduction in output."
The Justice Department declined to comment on Monday. The government and airlines on Friday backed a proposed trial date of September 2022 but that schedule has not yet been approved by a U.S. judge.
The partnership was announced in July 2020 and approved by the U.S. Transportation Department (DOT) shortly before the end of the Trump administration. The Justice Department said the alliance would cost consumers hundreds of millions of dollars.
The airlines argue the Justice Department and states should allow the alliance to continue to prove itself in the market. They note their commitments to expansion, oversight and measures to address possible anticompetitive effects.
The suit also signals the Biden administration's interest in greater competition where American and three other airlines control 80% of the domestic air market.
The agreement allows American and JetBlue to sell each other's flights in their New York-area and Boston networks and link frequent flyer programs in a move aimed at giving them more muscle to compete with United Airlines UAL.N and Delta Air Lines DAL.N in the Northeast.
The Justice Department complaint said the partnership at least partially removed JetBlue as a disruptive maverick that would work to drive down prices.
(Reporting by David Shepardson; Editing by Cynthia Osterman)
((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.
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Adds Justice Department declining to comment, background WASHINGTON, Nov 22 (Reuters) - American Airlines AAL.O and JetBlue Airways Corp JBLU.O asked a U.S. judge on Monday to dismiss an antitrust lawsuit filed by the Justice Department and six states over the company's "Northeast Alliance" partnership. The suit filed in September alleges the deal would lead to higher fares in busy northeastern U.S. airports and seeks to unwind the alliance. The suit also signals the Biden administration's interest in greater competition where American and three other airlines control 80% of the domestic air market.
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Adds Justice Department declining to comment, background WASHINGTON, Nov 22 (Reuters) - American Airlines AAL.O and JetBlue Airways Corp JBLU.O asked a U.S. judge on Monday to dismiss an antitrust lawsuit filed by the Justice Department and six states over the company's "Northeast Alliance" partnership. The suit filed in September alleges the deal would lead to higher fares in busy northeastern U.S. airports and seeks to unwind the alliance. The Justice Department declined to comment on Monday.
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Adds Justice Department declining to comment, background WASHINGTON, Nov 22 (Reuters) - American Airlines AAL.O and JetBlue Airways Corp JBLU.O asked a U.S. judge on Monday to dismiss an antitrust lawsuit filed by the Justice Department and six states over the company's "Northeast Alliance" partnership. The airlines said Monday the alliance has been in place for nine months but the suit does "not allege that it has caused a single higher price, any reduction in quality or the slightest reduction in output." The airlines argue the Justice Department and states should allow the alliance to continue to prove itself in the market.
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Adds Justice Department declining to comment, background WASHINGTON, Nov 22 (Reuters) - American Airlines AAL.O and JetBlue Airways Corp JBLU.O asked a U.S. judge on Monday to dismiss an antitrust lawsuit filed by the Justice Department and six states over the company's "Northeast Alliance" partnership. The suit filed in September alleges the deal would lead to higher fares in busy northeastern U.S. airports and seeks to unwind the alliance. The airlines argue the Justice Department and states should allow the alliance to continue to prove itself in the market.
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4020.0
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2021-11-22 00:00:00 UTC
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American Airlines, JetBlue ask court to throw out U.S. antitrust suit
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AAL
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https://www.nasdaq.com/articles/american-airlines-jetblue-ask-court-to-throw-out-u.s.-antitrust-suit
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nan
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nan
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WASHINGTON, Nov 22 (Reuters) - American Airlines AAL.O and JetBlue Airways Corp JBLU.O asked a U.S. judge on Monday to dismiss an antitrust lawsuit filed by the Justice Department and six states over the company's "Northeast Alliance" partnership.
The suit alleges the deal would lead to higher fares in busy Northeastern U.S. airports and seeks to unwind the alliance. The airlines said Monday the alliance has been in place for nine months but the suit does "not allege that it has caused a single higher price, any reduction in quality or the slightest reduction in output."
(Reporting by David Shepardson)
((David.Shepardson@thomsonreuters.com; 2028988324;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
WASHINGTON, Nov 22 (Reuters) - American Airlines AAL.O and JetBlue Airways Corp JBLU.O asked a U.S. judge on Monday to dismiss an antitrust lawsuit filed by the Justice Department and six states over the company's "Northeast Alliance" partnership. The suit alleges the deal would lead to higher fares in busy Northeastern U.S. airports and seeks to unwind the alliance. The airlines said Monday the alliance has been in place for nine months but the suit does "not allege that it has caused a single higher price, any reduction in quality or the slightest reduction in output."
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WASHINGTON, Nov 22 (Reuters) - American Airlines AAL.O and JetBlue Airways Corp JBLU.O asked a U.S. judge on Monday to dismiss an antitrust lawsuit filed by the Justice Department and six states over the company's "Northeast Alliance" partnership. The suit alleges the deal would lead to higher fares in busy Northeastern U.S. airports and seeks to unwind the alliance. The airlines said Monday the alliance has been in place for nine months but the suit does "not allege that it has caused a single higher price, any reduction in quality or the slightest reduction in output."
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WASHINGTON, Nov 22 (Reuters) - American Airlines AAL.O and JetBlue Airways Corp JBLU.O asked a U.S. judge on Monday to dismiss an antitrust lawsuit filed by the Justice Department and six states over the company's "Northeast Alliance" partnership. The airlines said Monday the alliance has been in place for nine months but the suit does "not allege that it has caused a single higher price, any reduction in quality or the slightest reduction in output." (Reporting by David Shepardson) ((David.Shepardson@thomsonreuters.com; 2028988324;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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WASHINGTON, Nov 22 (Reuters) - American Airlines AAL.O and JetBlue Airways Corp JBLU.O asked a U.S. judge on Monday to dismiss an antitrust lawsuit filed by the Justice Department and six states over the company's "Northeast Alliance" partnership. The suit alleges the deal would lead to higher fares in busy Northeastern U.S. airports and seeks to unwind the alliance. The airlines said Monday the alliance has been in place for nine months but the suit does "not allege that it has caused a single higher price, any reduction in quality or the slightest reduction in output."
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4021.0
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2021-11-22 00:00:00 UTC
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REUTERS NEXT-Anglo CEO expects investor support for plan to keep 'met' coal
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AAL
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https://www.nasdaq.com/articles/reuters-next-anglo-ceo-expects-investor-support-for-plan-to-keep-met-coal-0
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nan
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nan
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By Clara Denina
LONDON, Nov 19 (Reuters) - Anglo American, which divested its thermal coal mines this year after pressure from investors, plans to retain its steelmaking coal portfolio as it is confident that they will not press for an early exit, the mining group's chief executive said.
Anglo AAL.L spun out its South African thermal coal operations and sold its stake in a Colombian mine to Glencore GLEN.L after shareholder calls to ditch the more polluting fossil fuel to meet emissions targets.
However, the price of thermal coal, which is burned for steam to produce electricity, rose as high as $280 a tonne in the second half of 2021 from as low as $57 in 2020, generating strong returns for the new owners.
"For us it (thermal coal) created disincentives ... yes the EBITDA will be a bit lower this year, but ... we are playing the long game," boss Mark Cutifani said in an interview for the upcoming Reuters Next conference on Dec. 1-3.
Thermal coal, a relatively small part of Anglo's copper to platinum, nickel and diamond portfolio, had deterred some large investors from owning its shares, Cutifani said.
Anglo also produces metallurgical, known as 'met', coal and iron ore, which are key ingredients in steelmaking.
Emissions from steelmaking account for up to 9% of the global total and producers are pushing to develop technology to meet global climate commitments.
"The conversation around met coal has become a lot more mature and we are arguing that we think we are the best holders of those assets for the next 15 years at least and that argument seems to be resonating better with shareholders," he added.
The coking coal mines owned by Anglo have a relatively short life until the 2040s.
Some shareholders are warming to the idea of holding stocks in coal companies that pledge to run down mines responsibly rather than selling them.
"We are looking at sustainability and you don't want to pull out of an investment and destroy livelihoods and communities," Mduduzi Bhulose, portfolio manager at South Africa's Public Investment Corporation (PIC), said.
PIC is Anglo's largest shareholder with a 6.9% holding, according to Refinitiv data.
"In the event that they decide to get out of any other metal, the expectation is that they do it in a responsible manner and Anglo has over time shown that they can do that," PIC's Bhulose added.
To watch the Reuters Next conference please register here https://reutersevents.com/events/next/
(Reporting by Clara Denina; Additional reporting by Zandi Shabalala in London and Helen Reid in Johannesburg; Editing by Alexander Smith)
((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.
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Anglo AAL.L spun out its South African thermal coal operations and sold its stake in a Colombian mine to Glencore GLEN.L after shareholder calls to ditch the more polluting fossil fuel to meet emissions targets. "For us it (thermal coal) created disincentives ... yes the EBITDA will be a bit lower this year, but ... we are playing the long game," boss Mark Cutifani said in an interview for the upcoming Reuters Next conference on Dec. 1-3. Thermal coal, a relatively small part of Anglo's copper to platinum, nickel and diamond portfolio, had deterred some large investors from owning its shares, Cutifani said.
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Anglo AAL.L spun out its South African thermal coal operations and sold its stake in a Colombian mine to Glencore GLEN.L after shareholder calls to ditch the more polluting fossil fuel to meet emissions targets. By Clara Denina LONDON, Nov 19 (Reuters) - Anglo American, which divested its thermal coal mines this year after pressure from investors, plans to retain its steelmaking coal portfolio as it is confident that they will not press for an early exit, the mining group's chief executive said. The coking coal mines owned by Anglo have a relatively short life until the 2040s.
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Anglo AAL.L spun out its South African thermal coal operations and sold its stake in a Colombian mine to Glencore GLEN.L after shareholder calls to ditch the more polluting fossil fuel to meet emissions targets. By Clara Denina LONDON, Nov 19 (Reuters) - Anglo American, which divested its thermal coal mines this year after pressure from investors, plans to retain its steelmaking coal portfolio as it is confident that they will not press for an early exit, the mining group's chief executive said. Thermal coal, a relatively small part of Anglo's copper to platinum, nickel and diamond portfolio, had deterred some large investors from owning its shares, Cutifani said.
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Anglo AAL.L spun out its South African thermal coal operations and sold its stake in a Colombian mine to Glencore GLEN.L after shareholder calls to ditch the more polluting fossil fuel to meet emissions targets. By Clara Denina LONDON, Nov 19 (Reuters) - Anglo American, which divested its thermal coal mines this year after pressure from investors, plans to retain its steelmaking coal portfolio as it is confident that they will not press for an early exit, the mining group's chief executive said. However, the price of thermal coal, which is burned for steam to produce electricity, rose as high as $280 a tonne in the second half of 2021 from as low as $57 in 2020, generating strong returns for the new owners.
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4022.0
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2021-11-19 00:00:00 UTC
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REUTERS NEXT-Anglo CEO expects investor support for plan to keep 'met' coal
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https://www.nasdaq.com/articles/reuters-next-anglo-ceo-expects-investor-support-for-plan-to-keep-met-coal
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By Clara Denina
LONDON, Nov 19 (Reuters) - Anglo American, which divested its thermal coal mines this year after pressure from investors, plans to retain its steelmaking coal portfolio as it is confident that they will not press for an early exit, the mining group's chief executive said.
Anglo AAL.L spun out its South African thermal coal operations and sold its stake in a Colombian mine to Glencore GLEN.L after shareholder calls to ditch the more polluting fossil fuel to meet emissions targets.
However, the price of thermal coal, which is burned for steam to produce electricity, rose as high as $280 a tonne in the second half of 2021 from as low as $57 in 2020, generating strong returns for the new owners.
"For us it (thermal coal) created disincentives ... yes the EBITDA will be a bit lower this year, but ... we are playing the long game," boss Mark Cutifani said in an interview for the upcoming Reuters Next conference on Dec. 1-3.
Thermal coal, a relatively small part of Anglo's copper to platinum, nickel and diamond portfolio, had deterred some large investors from owning its shares, Cutifani said.
Anglo also produces metallurgical, known as 'met', coal and iron ore, which are key ingredients in steelmaking.
Emissions from steelmaking account for up to 9% of the global total and producers are pushing to develop technology to meet global climate commitments.
"The conversation around met coal has become a lot more mature and we are arguing that we think we are the best holders of those assets for the next 15 years at least and that argument seems to be resonating better with shareholders," he added.
The coking coal mines owned by Anglo have a relatively short life until the 2040s.
Some shareholders are warming to the idea of holding stocks in coal companies that pledge to run down mines responsibly rather than selling them.
"We are looking at sustainability and you don't want to pull out of an investment and destroy livelihoods and communities," Mduduzi Bhulose, portfolio manager at South Africa's Public Investment Corporation (PIC), said.
PIC is Anglo's largest shareholder with a 6.9% holding, according to Refinitiv data.
"In the event that they decide to get out of any other metal, the expectation is that they do it in a responsible manner and Anglo has over time shown that they can do that," PIC's Bhulose added.
To watch the Reuters Next conference please register here https://reutersevents.com/events/next/
(Reporting by Clara Denina; Additional reporting by Zandi Shabalala in London and Helen Reid in Johannesburg; Editing by Alexander Smith)
((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.
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Anglo AAL.L spun out its South African thermal coal operations and sold its stake in a Colombian mine to Glencore GLEN.L after shareholder calls to ditch the more polluting fossil fuel to meet emissions targets. "For us it (thermal coal) created disincentives ... yes the EBITDA will be a bit lower this year, but ... we are playing the long game," boss Mark Cutifani said in an interview for the upcoming Reuters Next conference on Dec. 1-3. Thermal coal, a relatively small part of Anglo's copper to platinum, nickel and diamond portfolio, had deterred some large investors from owning its shares, Cutifani said.
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Anglo AAL.L spun out its South African thermal coal operations and sold its stake in a Colombian mine to Glencore GLEN.L after shareholder calls to ditch the more polluting fossil fuel to meet emissions targets. By Clara Denina LONDON, Nov 19 (Reuters) - Anglo American, which divested its thermal coal mines this year after pressure from investors, plans to retain its steelmaking coal portfolio as it is confident that they will not press for an early exit, the mining group's chief executive said. The coking coal mines owned by Anglo have a relatively short life until the 2040s.
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Anglo AAL.L spun out its South African thermal coal operations and sold its stake in a Colombian mine to Glencore GLEN.L after shareholder calls to ditch the more polluting fossil fuel to meet emissions targets. By Clara Denina LONDON, Nov 19 (Reuters) - Anglo American, which divested its thermal coal mines this year after pressure from investors, plans to retain its steelmaking coal portfolio as it is confident that they will not press for an early exit, the mining group's chief executive said. Thermal coal, a relatively small part of Anglo's copper to platinum, nickel and diamond portfolio, had deterred some large investors from owning its shares, Cutifani said.
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Anglo AAL.L spun out its South African thermal coal operations and sold its stake in a Colombian mine to Glencore GLEN.L after shareholder calls to ditch the more polluting fossil fuel to meet emissions targets. By Clara Denina LONDON, Nov 19 (Reuters) - Anglo American, which divested its thermal coal mines this year after pressure from investors, plans to retain its steelmaking coal portfolio as it is confident that they will not press for an early exit, the mining group's chief executive said. However, the price of thermal coal, which is burned for steam to produce electricity, rose as high as $280 a tonne in the second half of 2021 from as low as $57 in 2020, generating strong returns for the new owners.
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4023.0
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2021-11-19 00:00:00 UTC
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US STOCKS-Lockdown fears weigh on Dow, S&P 500; Nasdaq hits record high
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https://www.nasdaq.com/articles/us-stocks-lockdown-fears-weigh-on-dow-sp-500-nasdaq-hits-record-high
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By Ambar Warrick and Devik Jain
Nov 19 (Reuters) - The Dow and the S&P 500 fell on Friday as fears of fresh lockdowns to curb the spread of COVID-19 in Europe hammered banking, energy and airline stocks, while strength in technology pushed the Nasdaq to a record high.
In Europe, a resurgence in COVID-19 cases saw Austria outline plans for a full lockdown, and fears that Germany could follow suit amid a new wave of infections rattled stock markets globally.
Banking stocks .SPXBK fell about 2.6%, tracking a drop in Treasury yields as investors snapped up safe-haven bonds. Financial .SPSY was among the worst-performing S&P sectors for the day, down 1.7%. US/
Carriers including Delta Air Lines DAL.N, United Airlines UAL.O and American Airlines AAL.O, and cruiseliners Norwegian Cruise Line NCLH.N and Carnival Corp CCL.N fell between 1.3% and 4.4%.
Major oil firms dropped as crude prices fell on renewed concerns over European demand, pulling the S&P energy sector .SPNY down 3.4%. O/R
"There's some pandemic risk. However, I don't believe that the U.S. will head in the direction like Austria. If Germany institutes a full lockdown, that would probably have an impact, again, to the supply chain," said Tom Mantione, managing director, UBS Private Wealth Management in Stamford, Connecticut.
"The biggest risk here to the market is not legislative policy or pandemic ... If the Fed chooses to react quickly and aggressively to persistent inflation, then the markets are going to have a problem."
Inflation remains front and center for investors, with recent comments from Federal Reserve officials suggesting that inflation is becoming more broad-based and that expectations for future price increases are rising.
Falling yields supported major technology stocks, which in turn lifted the Nasdaq .IXIC to a record high.
Alphabet Inc GOOGL.O, Amazon.com AMZN.O and Microsoft Corp MSFT.O - stocks which have largely persevered through economic shocks since 2020 - rose between 0.3% and 1.2%, while Netflix NFLX.O and other stay-at-home stocks also gained.
Chipmaker Nvidia NVDA.O rose 3.2% in heavy trade after posting strong quarterly results late Wednesday.
The S&P 500 and the Nasdaq eked out record highs on Thursday following strong technology and retail earnings. The Nasdaq was set to be the best performer this week, while the Dow Jones was set for a second straight week of losses.
At 10:18 a.m. ET, the Dow Jones Industrial Average .DJI was down 221.55 points, or 0.62%, at 35,649.40 and the S&P 500 .SPX was down 0.52 points, or 0.01%, at 4,704.02. The Nasdaq Composite .IXIC was up 82.12 points, or 0.51%, at 16,075.83.
President Joe Biden's $1.75 trillion bill to bolster the social safety net and fight climate change passed the U.S. House of Representatives on Friday, sending it to the Senate where negotiations will continue.
Among other stocks, Intuit Inc INTU.O jumped 12.6% as brokerages raised their price targets on the income tax software company after it beat quarterly estimates and raised forecast.
Moderna Inc MRNA.O and Pfizer Inc PFE.N gained 6.1% and 2.0%, respectively, after the U.S. Food and Drug Administration authorized booster doses of their COVID-19 vaccines for all adults.
Applied Materials Inc AMAT.O dropped 3.2% after the chipmaker forecast first-quarter sales and profit below market estimates on supply chain woes.
Declining issues outnumbered advancers for a 1.47-to-1 ratio on the NYSE and for a 1.05-to-1 ratio on the Nasdaq.
The S&P index recorded 33 new 52-week highs and four new lows, while the Nasdaq recorded 52 new highs and 141 new lows.
(Reporting by Ambar Warrick and Devik Jain in Bengaluru; Editing by Maju Samuel)
((Ambar.Warrick@thomsonreuters.com; +91-80-6182-2837; Reuters Messaging: ambar.warrick.thomsonreuters.com@reuters.net; Twitter: @AmbarWarrick))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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US/ Carriers including Delta Air Lines DAL.N, United Airlines UAL.O and American Airlines AAL.O, and cruiseliners Norwegian Cruise Line NCLH.N and Carnival Corp CCL.N fell between 1.3% and 4.4%. By Ambar Warrick and Devik Jain Nov 19 (Reuters) - The Dow and the S&P 500 fell on Friday as fears of fresh lockdowns to curb the spread of COVID-19 in Europe hammered banking, energy and airline stocks, while strength in technology pushed the Nasdaq to a record high. In Europe, a resurgence in COVID-19 cases saw Austria outline plans for a full lockdown, and fears that Germany could follow suit amid a new wave of infections rattled stock markets globally.
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US/ Carriers including Delta Air Lines DAL.N, United Airlines UAL.O and American Airlines AAL.O, and cruiseliners Norwegian Cruise Line NCLH.N and Carnival Corp CCL.N fell between 1.3% and 4.4%. By Ambar Warrick and Devik Jain Nov 19 (Reuters) - The Dow and the S&P 500 fell on Friday as fears of fresh lockdowns to curb the spread of COVID-19 in Europe hammered banking, energy and airline stocks, while strength in technology pushed the Nasdaq to a record high. Falling yields supported major technology stocks, which in turn lifted the Nasdaq .IXIC to a record high.
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US/ Carriers including Delta Air Lines DAL.N, United Airlines UAL.O and American Airlines AAL.O, and cruiseliners Norwegian Cruise Line NCLH.N and Carnival Corp CCL.N fell between 1.3% and 4.4%. By Ambar Warrick and Devik Jain Nov 19 (Reuters) - The Dow and the S&P 500 fell on Friday as fears of fresh lockdowns to curb the spread of COVID-19 in Europe hammered banking, energy and airline stocks, while strength in technology pushed the Nasdaq to a record high. In Europe, a resurgence in COVID-19 cases saw Austria outline plans for a full lockdown, and fears that Germany could follow suit amid a new wave of infections rattled stock markets globally.
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US/ Carriers including Delta Air Lines DAL.N, United Airlines UAL.O and American Airlines AAL.O, and cruiseliners Norwegian Cruise Line NCLH.N and Carnival Corp CCL.N fell between 1.3% and 4.4%. By Ambar Warrick and Devik Jain Nov 19 (Reuters) - The Dow and the S&P 500 fell on Friday as fears of fresh lockdowns to curb the spread of COVID-19 in Europe hammered banking, energy and airline stocks, while strength in technology pushed the Nasdaq to a record high. ET, the Dow Jones Industrial Average .DJI was down 221.55 points, or 0.62%, at 35,649.40 and the S&P 500 .SPX was down 0.52 points, or 0.01%, at 4,704.02.
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4024.0
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2021-11-19 00:00:00 UTC
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US STOCKS-COVID fears weigh on Dow, S&P 500; Nasdaq hits record high
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https://www.nasdaq.com/articles/us-stocks-covid-fears-weigh-on-dow-sp-500-nasdaq-hits-record-high
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For a live blog on the U.S. stock market, click LIVE/ or type LIVE/ in a news window.
Travel stocks slump as European COVID cases rise
Stay-at-home stocks gain
Apple hits record high on Black Friday optimism
Intuit surges on forecast hike
Indexes: Dow down 0.47%, S&P up 0.12%, Nasdaq up 0.72%
Updates to midday
By Ambar Warrick and Devik Jain
Nov 19 (Reuters) - The Dow Jones fell and the S&P 500 was flat on Friday as fears of new lockdowns to curb the spread of COVID-19 in Europe hammered banking, energy and airline stocks, while strength in technology stocks pushed the Nasdaq to a record high.
A resurgence in COVID-19 cases saw Austria outline plans for a full lockdown, and fears that Germany could follow suit rattled stock markets globally.
Banking stocks .SPXBK fell about 1.7%, tracking a drop in Treasury yields as investors snapped up safe-haven bonds. US/Financials .SPSY was among the worst-performing S&P sectors, down 1.1%.
Carriers including Delta Air Lines DAL.N, United Airlines UAL.O and American Airlines AAL.O, and cruiseliners Norwegian Cruise Line NCLH.N and Carnival Corp CCL.N fell between 0.9% and 1.8%.
Major oil firms dropped as crude prices fell on renewed concerns over European demand, making the S&P energy sector .SPNY the worst performer among its peers with a 3.7% loss. O/R
"It's a normal time to take risk off. And in this case, there's just so much liquidity that the market doesn't go down - just people take risk off by going into safe havens," said Jay Hatfield, chief executive of Infrastructure Capital Management in New York.
"Right now, COVID-19 is kind of a headline of the day. Every trade in the market right now is being driven by COVID."
Falling yields and safe-haven demand supported major technology stocks, which in turn lifted the Nasdaq .IXIC.
Tech stocks are usually sensitive to yields, given that investors weigh future earnings in the sector against returns on debt.
FAANG stocks, which have largely persevered through economic shocks since 2020, rose between 0.3% and 3.9%. Netflix NFLX.O gained along with other stay-at-home stocks.
IPhone maker Apple Inc AAPL.O hit a record high as investors priced in strong Black Friday sales next week.
Chipmaker Nvidia NVDA.O rose 3.1% in heavy trade after posting strong quarterly results late Wednesday. The Philadelphia semiconductor index .SOX also hit a record high.
At 11:45 a.m. ET, the Dow Jones Industrial Average .DJIwas down 167.60 points, or 0.47%, at 35,703.35 and the S&P 500 .SPXwas up 5.66 points, or 0.12%, at 4,710.20. The Nasdaq Composite .IXICwas up 115.89 points, or 0.72%, at 16,109.60.
The S&P consumer discretionary sector .SPLRCD hit a record high, following strong retail earnings this week and positive indicators for holiday shopping.
But inflation fears also persisted in markets after recent comments from Federal Reserve officials suggested that price pressures were becoming more broad-based.
President Joe Biden's $1.75 trillion bill to bolster the social safety net and fight climate change passed the U.S. House of Representatives on Friday, sending it to the Senate where negotiations will continue.
Among other stocks, Intuit Inc INTU.O jumped 10.1% as brokerages lifted their price targets on the income tax software company after it beat quarterly estimates and raised forecast.
Applied Materials Inc AMAT.O dropped 2.9% after the chipmaker forecast first-quarter sales and profit below market estimates on supply chain woes.
Declining issues outnumbered advancers for a 1.55-to-1 ratio on the NYSE and for a 1.22-to-1 ratio on the Nasdaq.
The S&P index recorded 39 new 52-week highs and six new lows, while the Nasdaq recorded 74 new highs and 227 new lows.
(Reporting by Ambar Warrick and Devik Jain in Bengaluru; Editing by Maju Samuel)
((Ambar.Warrick@thomsonreuters.com; +91-80-6182-2837; Reuters Messaging: ambar.warrick.thomsonreuters.com@reuters.net; Twitter: @AmbarWarrick))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Carriers including Delta Air Lines DAL.N, United Airlines UAL.O and American Airlines AAL.O, and cruiseliners Norwegian Cruise Line NCLH.N and Carnival Corp CCL.N fell between 0.9% and 1.8%. Major oil firms dropped as crude prices fell on renewed concerns over European demand, making the S&P energy sector .SPNY the worst performer among its peers with a 3.7% loss. And in this case, there's just so much liquidity that the market doesn't go down - just people take risk off by going into safe havens," said Jay Hatfield, chief executive of Infrastructure Capital Management in New York.
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Carriers including Delta Air Lines DAL.N, United Airlines UAL.O and American Airlines AAL.O, and cruiseliners Norwegian Cruise Line NCLH.N and Carnival Corp CCL.N fell between 0.9% and 1.8%. Travel stocks slump as European COVID cases rise Stay-at-home stocks gain Apple hits record high on Black Friday optimism Intuit surges on forecast hike Indexes: Dow down 0.47%, S&P up 0.12%, Nasdaq up 0.72% Updates to midday By Ambar Warrick and Devik Jain Nov 19 (Reuters) - The Dow Jones fell and the S&P 500 was flat on Friday as fears of new lockdowns to curb the spread of COVID-19 in Europe hammered banking, energy and airline stocks, while strength in technology stocks pushed the Nasdaq to a record high. Falling yields and safe-haven demand supported major technology stocks, which in turn lifted the Nasdaq .IXIC.
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Carriers including Delta Air Lines DAL.N, United Airlines UAL.O and American Airlines AAL.O, and cruiseliners Norwegian Cruise Line NCLH.N and Carnival Corp CCL.N fell between 0.9% and 1.8%. Travel stocks slump as European COVID cases rise Stay-at-home stocks gain Apple hits record high on Black Friday optimism Intuit surges on forecast hike Indexes: Dow down 0.47%, S&P up 0.12%, Nasdaq up 0.72% Updates to midday By Ambar Warrick and Devik Jain Nov 19 (Reuters) - The Dow Jones fell and the S&P 500 was flat on Friday as fears of new lockdowns to curb the spread of COVID-19 in Europe hammered banking, energy and airline stocks, while strength in technology stocks pushed the Nasdaq to a record high. IPhone maker Apple Inc AAPL.O hit a record high as investors priced in strong Black Friday sales next week.
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Carriers including Delta Air Lines DAL.N, United Airlines UAL.O and American Airlines AAL.O, and cruiseliners Norwegian Cruise Line NCLH.N and Carnival Corp CCL.N fell between 0.9% and 1.8%. Travel stocks slump as European COVID cases rise Stay-at-home stocks gain Apple hits record high on Black Friday optimism Intuit surges on forecast hike Indexes: Dow down 0.47%, S&P up 0.12%, Nasdaq up 0.72% Updates to midday By Ambar Warrick and Devik Jain Nov 19 (Reuters) - The Dow Jones fell and the S&P 500 was flat on Friday as fears of new lockdowns to curb the spread of COVID-19 in Europe hammered banking, energy and airline stocks, while strength in technology stocks pushed the Nasdaq to a record high. Falling yields and safe-haven demand supported major technology stocks, which in turn lifted the Nasdaq .IXIC.
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4025.0
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2021-11-19 00:00:00 UTC
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U.S. judge sets trial date in American Airlines, JetBlue antitrust lawsuit
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https://www.nasdaq.com/articles/u.s.-judge-sets-trial-date-in-american-airlines-jetblue-antitrust-lawsuit
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Nov 19 (Reuters) - The judge hearing the U.S. Justice Department's antitrust case against American Airlines Group Inc AAL.O and JetBlue Airways Corp JBLU.O has set a trial date for the second half of next year.
U.S. District Judge Leo Sorokin in Boston scheduled the case to begin Sept. 26, 2022, according to court documents filed on Friday. The trial stems from an antitrust lawsuit filed by the Justice Department and six states over what is called the "Northeast Alliance" partnership between JetBlue and the world's largest airline, American Airlines.
The suit alleges the deal would lead to higher fares in busy Northeastern U.S. airports and seeks to block the plan, which was announced in July 2020 and approved by the U.S. Transportation Department shortly before the end of the Trump administration.
(Reporting by Tyler Clifford; Editing by Sandra Maler)
((tyler.clifford@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.
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Nov 19 (Reuters) - The judge hearing the U.S. Justice Department's antitrust case against American Airlines Group Inc AAL.O and JetBlue Airways Corp JBLU.O has set a trial date for the second half of next year. U.S. District Judge Leo Sorokin in Boston scheduled the case to begin Sept. 26, 2022, according to court documents filed on Friday. The suit alleges the deal would lead to higher fares in busy Northeastern U.S. airports and seeks to block the plan, which was announced in July 2020 and approved by the U.S. Transportation Department shortly before the end of the Trump administration.
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Nov 19 (Reuters) - The judge hearing the U.S. Justice Department's antitrust case against American Airlines Group Inc AAL.O and JetBlue Airways Corp JBLU.O has set a trial date for the second half of next year. The trial stems from an antitrust lawsuit filed by the Justice Department and six states over what is called the "Northeast Alliance" partnership between JetBlue and the world's largest airline, American Airlines. (Reporting by Tyler Clifford; Editing by Sandra Maler) ((tyler.clifford@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.
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Nov 19 (Reuters) - The judge hearing the U.S. Justice Department's antitrust case against American Airlines Group Inc AAL.O and JetBlue Airways Corp JBLU.O has set a trial date for the second half of next year. The trial stems from an antitrust lawsuit filed by the Justice Department and six states over what is called the "Northeast Alliance" partnership between JetBlue and the world's largest airline, American Airlines. (Reporting by Tyler Clifford; Editing by Sandra Maler) ((tyler.clifford@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.
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Nov 19 (Reuters) - The judge hearing the U.S. Justice Department's antitrust case against American Airlines Group Inc AAL.O and JetBlue Airways Corp JBLU.O has set a trial date for the second half of next year. U.S. District Judge Leo Sorokin in Boston scheduled the case to begin Sept. 26, 2022, according to court documents filed on Friday. The trial stems from an antitrust lawsuit filed by the Justice Department and six states over what is called the "Northeast Alliance" partnership between JetBlue and the world's largest airline, American Airlines.
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4026.0
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2021-11-19 00:00:00 UTC
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US STOCKS-Nasdaq closes above 16,000 for the first time; Dow down again
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https://www.nasdaq.com/articles/us-stocks-nasdaq-closes-above-16000-for-the-first-time-dow-down-again
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By David French and Ambar Warrick
Nov 19 (Reuters) - The Nasdaq Composite Index .IXIC closed above the 16,000 mark for the first time on Friday, in its second-straight record finish, while the Dow succumbed to its fourth losing session in the last five.
Both the Nasdaq and S&P 500 index .SPX scored a winning week, after last week's declines snapped a five-week run of higher finishes.
The Dow Jones Industrial Average's .DJI second-successive weekly loss wiped out the last of its November gains, extending the index's drop from a Nov. 8 record high.
Friday's fall was caused by banking, energy and airline stocks slumping on fears of new lockdowns in Europe to curb a resurgence of COVID-19 cases.
Austria outlined plans for a full lockdown, and fears that Germany could follow suit rattled stock markets globally.
Banking stocks .SPXBK fell, tracking a drop in Treasury yields as investors snapped up safe-haven bonds. US/Financials .SPSY was among the worst-performing S&P sectors.
Carriers including Delta Air Lines DAL.N, United Airlines UAL.O and American Airlines AAL.O, and cruiseliners Norwegian Cruise Line NCLH.N and Carnival Corp CCL.N all dropped.
Major oil firms dropped as crude prices fell on renewed concerns over European demand, making the S&P energy sector .SPNY the worst performer among its peers. O/R
"It's a normal time to take risk off. And in this case, there's just so much liquidity that the market doesn't go down - just people take risk off by going into safe havens," said Jay Hatfield, chief executive of Infrastructure Capital Management in New York.
"Right now, COVID-19 is kind of a headline of the day. Every trade in the market right now is being driven by COVID."
Falling yields and safe-haven demand supported major technology stocks, which in turn lifted the Nasdaq .IXIC.
Tech stocks are sensitive to yields, as investors weigh future earnings in the sector against returns on debt.
FAANG stocks, which have largely persevered through economic shocks since 2020, traded broadly higher. Netflix Inc NFLX.O gained along with other stay-at-home stocks.
Chipmaker Nvidia Corp NVDA.O rose in heavy trade after posting strong quarterly results late Wednesday. The Philadelphia semiconductor index .SOXalso hit its third record closing high in four.
According to preliminary data, the S&P 500 .SPX lost 6.54 points, or 0.14%, to end at 4,697.95 points, while the Nasdaq Composite .IXIC gained 64.63 points, or 0.40%, to 16,058.34. The Dow Jones Industrial Average .DJI fell 269.04 points, or 0.75%, to 35,601.91.
The S&P 500 gyrated on Friday between positive and negative territory, after a week in which retailers pushed it to a record finish on Thursday.
The S&P consumer discretionary sector .SPLRCDended at a new closing peak for a second day in a row, having also broken its lifetime intraday high on Friday. This follows strong retail earnings this week and positive signs for holiday shopping.
Lowe's Companies LOW.Nrose to its third successive record close after reporting third-quarter results on Wednesday. ETSY Inc ETSY.O, which posted earnings earlier this month, achieved the same closing feat.
Profit-taking in names which gained earlier in the week led to drops in Macy's Inc M.N, Kohls Corp KSS.N and Gap Inc GPS.N.
The information technology segment .SPLRCT was the best performer on the S&P 500.
It was buoyed by Intuit Inc INTU.O, which jumped as brokerages lifted their price targets on the income tax software company after it beat quarterly estimates and raised forecasts.
(Reporting by Ambar Warrick and Devik Jain in Bengaluru and David French in New York; Editing by Maju Samuel and Richard Chang)
((Ambar.Warrick@thomsonreuters.com; +91-80-6182-2837; Reuters Messaging: ambar.warrick.thomsonreuters.com@reuters.net; Twitter: @AmbarWarrick))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Carriers including Delta Air Lines DAL.N, United Airlines UAL.O and American Airlines AAL.O, and cruiseliners Norwegian Cruise Line NCLH.N and Carnival Corp CCL.N all dropped. By David French and Ambar Warrick Nov 19 (Reuters) - The Nasdaq Composite Index .IXIC closed above the 16,000 mark for the first time on Friday, in its second-straight record finish, while the Dow succumbed to its fourth losing session in the last five. Major oil firms dropped as crude prices fell on renewed concerns over European demand, making the S&P energy sector .SPNY the worst performer among its peers.
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Carriers including Delta Air Lines DAL.N, United Airlines UAL.O and American Airlines AAL.O, and cruiseliners Norwegian Cruise Line NCLH.N and Carnival Corp CCL.N all dropped. By David French and Ambar Warrick Nov 19 (Reuters) - The Nasdaq Composite Index .IXIC closed above the 16,000 mark for the first time on Friday, in its second-straight record finish, while the Dow succumbed to its fourth losing session in the last five. Falling yields and safe-haven demand supported major technology stocks, which in turn lifted the Nasdaq .IXIC.
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Carriers including Delta Air Lines DAL.N, United Airlines UAL.O and American Airlines AAL.O, and cruiseliners Norwegian Cruise Line NCLH.N and Carnival Corp CCL.N all dropped. By David French and Ambar Warrick Nov 19 (Reuters) - The Nasdaq Composite Index .IXIC closed above the 16,000 mark for the first time on Friday, in its second-straight record finish, while the Dow succumbed to its fourth losing session in the last five. The Dow Jones Industrial Average's .DJI second-successive weekly loss wiped out the last of its November gains, extending the index's drop from a Nov. 8 record high.
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Carriers including Delta Air Lines DAL.N, United Airlines UAL.O and American Airlines AAL.O, and cruiseliners Norwegian Cruise Line NCLH.N and Carnival Corp CCL.N all dropped. By David French and Ambar Warrick Nov 19 (Reuters) - The Nasdaq Composite Index .IXIC closed above the 16,000 mark for the first time on Friday, in its second-straight record finish, while the Dow succumbed to its fourth losing session in the last five. The Dow Jones Industrial Average's .DJI second-successive weekly loss wiped out the last of its November gains, extending the index's drop from a Nov. 8 record high.
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2021-11-19 00:00:00 UTC
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US STOCKS-Nasdaq ends atop 16,000 mark for the first time on tech strength
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https://www.nasdaq.com/articles/us-stocks-nasdaq-ends-atop-16000-mark-for-the-first-time-on-tech-strength
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For a live blog on the U.S. stock market, click LIVE/ or type LIVE/ in a news window.
Travel stocks slump as European COVID cases rise
Tech, stay-at-home stocks gain
S&P retail index hits new best after strong earnings
Indexes: Dow down 0.75%, S&P down 0.14%, Nasdaq up 0.4%
Weekly indexes: Dow down 1.38%, S&P up 0.34%, Nasdaq up 1.24%
Adds closing prices, weekly figures, analyst quote
By David French
Nov 19 (Reuters) - The Nasdaq Composite Index .IXIC closed above 16,000 points for the first time on Friday, in its second-straight record finish powered by technology stocks, while pandemic jitters sent the Dow to its fourth losing session in the last five.
Both the Nasdaq and S&P 500 index .SPX scored a winning week, up 1.2% and 0.3% respectively, after last week's declines snapped a five-week run of higher finishes.
The Dow Jones Industrial Average's .DJI second-successive weekly loss - this one of 1.4% - wiped out the last of its November gains, extending the index's drop from a Nov. 8 record high to 2.3%.
Friday's fall was caused by banking, energy and airline stocks slumping on fears that European countries, battling a resurgence of COVID-19 cases, could follow Austria in moving towards a full lockdown.
Banking stocks .SPXBK fell 1.6%, tracking a drop in Treasury yields as investors snapped up safe-haven bonds. The S&P energy index .SPNY dropped 3.9%, the worst performing sector, as crude prices fell on demand implications. O/RUS/
Carriers including Delta Air Lines DAL.N, United Airlines UAL.O and American Airlines AAL.O, and cruiseliners Norwegian Cruise Line NCLH.N and Carnival Corp CCL.N all dropped between 0.6% and 2.8%.
"It's a normal time to take risk off. And in this case, there's just so much liquidity that the market doesn't go down - just people take risk off by going into safe havens," said Jay Hatfield, chief executive of Infrastructure Capital Management in New York.
Falling yields and safe-haven demand supported major technology stocks, which in turn lifted the Nasdaq .IXIC.
FAANG stocks, which have largely persevered through economic shocks since 2020, traded broadly higher. Netflix Inc NFLX.O gained along with other stay-at-home stocks.
Chipmaker Nvidia Corp NVDA.O rose 4.1% to its third straight closing high, and the Philadelphia semiconductor index .SOX, up 0.3%, hit its third record closing high in four.
The Dow Jones Industrial Average .DJI fell 268.97 points, or 0.75%, to 35,601.98; the S&P 500 .SPX lost 6.58 points, or 0.14%, at 4,697.96; and the Nasdaq Composite .IXIC added 63.73 points, or 0.4%, to 16,057.44.
The S&P 500 gyrated on Friday before slipping into negative territory, after a week in which retailers pushed it to a record finish the previous day.
The S&P consumer discretionary sector .SPLRCD rose 0.3% to a closing peak for a second day in a row, after breaking its lifetime intraday high on Friday. This follows strong retail earnings this week and positive signs for holiday shopping.
Lowe's Companies LOW.N rose 0.9% to its third successive record close after reporting third-quarter results on Wednesday. Etsy Inc ETSY.O, which posted earnings earlier this month, achieved the same closing feat after finishing up 1.4%.
"Out of the Q3 earnings, one of the trends we have seen is the resounding strength of the U.S. consumer," said Jessica Bemer, portfolio manager at Easterly Investment Partners.
"We've heard it all through this week from retailers talking about the consumer coming back into the store, enjoying the shopping experience and getting ready for the holidays. It makes sense but it was really validated during earnings season."
Profit-taking in names which gained earlier in the week led to drops of between 2.9% and 8.8% in Macy's Inc M.N, Kohls Corp KSS.N and Gap Inc GPS.N.
The information technology segment .SPLRCT, up 0.8%, was the best performer on the S&P 500.
It was buoyed by Intuit Inc INTU.O, which jumped 10.1% as brokerages lifted their price targets on the income tax software company after it beat quarterly estimates and raised forecasts.
Volume on U.S. exchanges was 10.68 billion shares, compared with the 11.12 billion average for the full session over the last 20 trading days.
The S&P 500 posted 45 new 52-week highs and nine new lows; the Nasdaq Composite recorded 100 new highs and 309 new lows.
(Reporting by Ambar Warrick and Devik Jain in Bengaluru and David French in New York; Editing by Maju Samuel and Richard Chang)
((Ambar.Warrick@thomsonreuters.com; +91-80-6182-2837; Reuters Messaging: ambar.warrick.thomsonreuters.com@reuters.net; Twitter: @AmbarWarrick))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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O/RUS/ Carriers including Delta Air Lines DAL.N, United Airlines UAL.O and American Airlines AAL.O, and cruiseliners Norwegian Cruise Line NCLH.N and Carnival Corp CCL.N all dropped between 0.6% and 2.8%. Friday's fall was caused by banking, energy and airline stocks slumping on fears that European countries, battling a resurgence of COVID-19 cases, could follow Austria in moving towards a full lockdown. And in this case, there's just so much liquidity that the market doesn't go down - just people take risk off by going into safe havens," said Jay Hatfield, chief executive of Infrastructure Capital Management in New York.
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O/RUS/ Carriers including Delta Air Lines DAL.N, United Airlines UAL.O and American Airlines AAL.O, and cruiseliners Norwegian Cruise Line NCLH.N and Carnival Corp CCL.N all dropped between 0.6% and 2.8%. Travel stocks slump as European COVID cases rise Tech, stay-at-home stocks gain S&P retail index hits new best after strong earnings Indexes: Dow down 0.75%, S&P down 0.14%, Nasdaq up 0.4% Weekly indexes: Dow down 1.38%, S&P up 0.34%, Nasdaq up 1.24% Adds closing prices, weekly figures, analyst quote By David French Nov 19 (Reuters) - The Nasdaq Composite Index .IXIC closed above 16,000 points for the first time on Friday, in its second-straight record finish powered by technology stocks, while pandemic jitters sent the Dow to its fourth losing session in the last five. The S&P energy index .SPNY dropped 3.9%, the worst performing sector, as crude prices fell on demand implications.
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O/RUS/ Carriers including Delta Air Lines DAL.N, United Airlines UAL.O and American Airlines AAL.O, and cruiseliners Norwegian Cruise Line NCLH.N and Carnival Corp CCL.N all dropped between 0.6% and 2.8%. Travel stocks slump as European COVID cases rise Tech, stay-at-home stocks gain S&P retail index hits new best after strong earnings Indexes: Dow down 0.75%, S&P down 0.14%, Nasdaq up 0.4% Weekly indexes: Dow down 1.38%, S&P up 0.34%, Nasdaq up 1.24% Adds closing prices, weekly figures, analyst quote By David French Nov 19 (Reuters) - The Nasdaq Composite Index .IXIC closed above 16,000 points for the first time on Friday, in its second-straight record finish powered by technology stocks, while pandemic jitters sent the Dow to its fourth losing session in the last five. The Dow Jones Industrial Average's .DJI second-successive weekly loss - this one of 1.4% - wiped out the last of its November gains, extending the index's drop from a Nov. 8 record high to 2.3%.
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O/RUS/ Carriers including Delta Air Lines DAL.N, United Airlines UAL.O and American Airlines AAL.O, and cruiseliners Norwegian Cruise Line NCLH.N and Carnival Corp CCL.N all dropped between 0.6% and 2.8%. Travel stocks slump as European COVID cases rise Tech, stay-at-home stocks gain S&P retail index hits new best after strong earnings Indexes: Dow down 0.75%, S&P down 0.14%, Nasdaq up 0.4% Weekly indexes: Dow down 1.38%, S&P up 0.34%, Nasdaq up 1.24% Adds closing prices, weekly figures, analyst quote By David French Nov 19 (Reuters) - The Nasdaq Composite Index .IXIC closed above 16,000 points for the first time on Friday, in its second-straight record finish powered by technology stocks, while pandemic jitters sent the Dow to its fourth losing session in the last five. The Dow Jones Industrial Average's .DJI second-successive weekly loss - this one of 1.4% - wiped out the last of its November gains, extending the index's drop from a Nov. 8 record high to 2.3%.
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4028.0
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2021-11-19 00:00:00 UTC
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US STOCKS-Nasdaq futures at record high as economic concerns drive tech demand
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AAL
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https://www.nasdaq.com/articles/us-stocks-nasdaq-futures-at-record-high-as-economic-concerns-drive-tech-demand
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nan
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nan
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By Ambar Warrick and Devik Jain
Nov 19 (Reuters) - Nasdaq index futures hit a record high on Friday as investors sought economically stable sectors after a small delay in voting on President Joe Biden's $1.75 trillion spending bill, while rising COVID-19 cases in Europe also dented sentiment.
S&P and Dow futures fell tracking losses in banks, airlines, and other economically sensitive sectors. Uncertainty over rising inflation and the Federal Reserve's tightening also kept demand for value stocks low.
The U.S. House of Representatives early on Friday delayed an anticipated vote on passage of Biden's social programs and climate change investment bill, and will instead reconvene at 8 a.m. EST (1300 GMT) to complete the legislation.
In Europe, rising COVID-19 cases saw Austria outline plans for a full lockdown, while Germany could follow suit amid a new wave of infections.
Shares of Alphabet Inc GOOGL.O, Amazon.com AMZN.O and Microsoft Corp MSFT.O - stocks which have largely persevered through economic shocks since 2020, rose between 0.3% and 0.5% in premarket trade.
Chipmaker Nvidia NVDA.O also boosted Nasdaq futures, rising 1.7% in heavy trade after posting strong quarterly results late Wednesday.
On the other hand, carriers Delta Air Lines DAL.N, United Airlines UAL.O and American Airlines AAL.O, and cruiseliners Norwegian Cruise Line NCLH.N and Carnival Corp CCL.N fell between 1.4% and 2.3%.
Oil firms Exxon Mobil XOM.N and Chevron Corp CVX.N slipped 2.1% and 1.8% as crude prices sank, while big banks including JPMorgan Chase & Co JPM.N and Bank of America BAC.N were down between 0.9% and 1.1%, tracking a fall in U.S. Treasury yields. O/RUS/
At 6:26 a.m. ET, Dow e-minis 1YMcv1 were down 145 points, or 0.4%. S&P 500 e-minis EScv1 were down 5.75 points, or 0.12% and Nasdaq 100 e-minis NQcv1 were up 68 points, or 0.41%.
The S&P 500 .SPX and the Nasdaq .IXIC eked out record highs on Thursday following strong technology and retail earnings. Both indexes were headed for mild weekly gains, while the Dow Jones .DJI was set for a second straight week of losses.
Among major premarket movers, Intuit Inc INTU.O jumped 10.3% as brokerages raised their price targets on the income tax software company after it beat quarterly estimates and raised forecast. The stock was the top S&P 500 gainer in premarket trade.
Applied Materials Inc AMAT.O dropped 5.7% after the chipmaker forecast first-quarter sales and profit below market estimates on supply chain woes.
(Reporting by Ambar Warrick in Bengaluru; Editing by Maju Samuel)
((Ambar.Warrick@thomsonreuters.com; +91-80-6182-2837; Reuters Messaging: ambar.warrick.thomsonreuters.com@reuters.net; Twitter: @AmbarWarrick))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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On the other hand, carriers Delta Air Lines DAL.N, United Airlines UAL.O and American Airlines AAL.O, and cruiseliners Norwegian Cruise Line NCLH.N and Carnival Corp CCL.N fell between 1.4% and 2.3%. By Ambar Warrick and Devik Jain Nov 19 (Reuters) - Nasdaq index futures hit a record high on Friday as investors sought economically stable sectors after a small delay in voting on President Joe Biden's $1.75 trillion spending bill, while rising COVID-19 cases in Europe also dented sentiment. The U.S. House of Representatives early on Friday delayed an anticipated vote on passage of Biden's social programs and climate change investment bill, and will instead reconvene at 8 a.m. EST (1300 GMT) to complete the legislation.
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On the other hand, carriers Delta Air Lines DAL.N, United Airlines UAL.O and American Airlines AAL.O, and cruiseliners Norwegian Cruise Line NCLH.N and Carnival Corp CCL.N fell between 1.4% and 2.3%. By Ambar Warrick and Devik Jain Nov 19 (Reuters) - Nasdaq index futures hit a record high on Friday as investors sought economically stable sectors after a small delay in voting on President Joe Biden's $1.75 trillion spending bill, while rising COVID-19 cases in Europe also dented sentiment. S&P and Dow futures fell tracking losses in banks, airlines, and other economically sensitive sectors.
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On the other hand, carriers Delta Air Lines DAL.N, United Airlines UAL.O and American Airlines AAL.O, and cruiseliners Norwegian Cruise Line NCLH.N and Carnival Corp CCL.N fell between 1.4% and 2.3%. By Ambar Warrick and Devik Jain Nov 19 (Reuters) - Nasdaq index futures hit a record high on Friday as investors sought economically stable sectors after a small delay in voting on President Joe Biden's $1.75 trillion spending bill, while rising COVID-19 cases in Europe also dented sentiment. Chipmaker Nvidia NVDA.O also boosted Nasdaq futures, rising 1.7% in heavy trade after posting strong quarterly results late Wednesday.
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On the other hand, carriers Delta Air Lines DAL.N, United Airlines UAL.O and American Airlines AAL.O, and cruiseliners Norwegian Cruise Line NCLH.N and Carnival Corp CCL.N fell between 1.4% and 2.3%. By Ambar Warrick and Devik Jain Nov 19 (Reuters) - Nasdaq index futures hit a record high on Friday as investors sought economically stable sectors after a small delay in voting on President Joe Biden's $1.75 trillion spending bill, while rising COVID-19 cases in Europe also dented sentiment. S&P and Dow futures fell tracking losses in banks, airlines, and other economically sensitive sectors.
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4029.0
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2021-11-19 00:00:00 UTC
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US STOCKS-Nasdaq set for record open as economic concerns drive tech gains
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AAL
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https://www.nasdaq.com/articles/us-stocks-nasdaq-set-for-record-open-as-economic-concerns-drive-tech-gains
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nan
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nan
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By Ambar Warrick and Devik Jain
Nov 19 (Reuters) - The Nasdaq was set for a record open on Friday as investors sought sectors less exposed to economic ructions ahead of voting on President Joe Biden's $1.75 trillion spending bill, while rising COVID-19 cases in Europe also dented sentiment.
The S&P 500 .SPX and Dow Jones .DJI were set to fall tracking losses in banks, airlines and other economically sensitive sectors. Uncertainty over rising inflation and the Federal Reserve's policy tightening also kept demand for cyclical stocks low.
The U.S. House of Representatives early on Friday delayed an anticipated vote on passage of Biden's social programs and climate change investment bill, and reconvened at 8 a.m. EST (1300 GMT) to complete the legislation.
In Europe, rising COVID-19 cases saw Austria outline plans for a full lockdown, while Germany could follow suit amid a new wave of infections.
"There's some pandemic risk. However, I don't believe that the U.S. will head in the direction like Austria headed today. If Germany institutes a full lockdown, that would probably have an impact, again, to the supply chain," said Tom Mantione, managing director, UBS Private Wealth Management in Stamford, Connecticut.
"The biggest risk here to the market is not legislative policy or pandemic... If the Fed chooses to react quickly and aggressively to persistent inflation, then the markets (are) going to have a problem."
Shares of Alphabet Inc GOOGL.O, Amazon.com AMZN.O and Microsoft Corp MSFT.O - stocks which have largely persevered through economic shocks since 2020 - rose between 0.3% and 0.7% in premarket trade, while Netflix NFLX.O added more than 1%.
Chipmaker Nvidia NVDA.O also boosted Nasdaq futures, rising 1.3% in heavy trade after posting strong quarterly results late Wednesday.
On the other hand, carriers including Delta Air Lines DAL.N, United Airlines UAL.O and American Airlines AAL.O, and cruiseliners Norwegian Cruise Line NCLH.N and Carnival Corp CCL.N fell between 1.4% and 3.3%.
Major oil firms, including Exxon Mobil XOM.N and Chevron Corp CVX.N, slipped 2.4% and 3.3% as crude prices sank, while Wall Street's big banks were down between 1.4% and 2.5%, tracking a fall in U.S. Treasury yields. O/RUS/
At 8:35 a.m. ET, Dow e-minis 1YMcv1were down 230 points, or 0.64%. S&P 500 e-minis EScv1were down 11.75 points, or 0.25% and Nasdaq 100 e-minis NQcv1were up 67.75 points, or 0.41%.
The S&P 500 and the Nasdaq .IXIC eked out record highs on Thursday following strong technology and retail earnings. Both indexes were headed for mild weekly gains, while the Dow Jones was set for a second straight week of losses.
Among major premarket movers, Intuit Inc INTU.O jumped 12.7% as brokerages raised their price targets on the income tax software company after it beat quarterly estimates and raised forecast. The stock was the top S&P 500 gainer in premarket trade.
Applied Materials Inc AMAT.O dropped 6.1% after the chipmaker forecast first-quarter sales and profit below market estimates on supply chain woes.
(Reporting by Ambar Warrick and Devik Jain in Bengaluru; Editing by Maju Samuel)
((Ambar.Warrick@thomsonreuters.com; +91-80-6182-2837; Reuters Messaging: ambar.warrick.thomsonreuters.com@reuters.net; Twitter: @AmbarWarrick))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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On the other hand, carriers including Delta Air Lines DAL.N, United Airlines UAL.O and American Airlines AAL.O, and cruiseliners Norwegian Cruise Line NCLH.N and Carnival Corp CCL.N fell between 1.4% and 3.3%. By Ambar Warrick and Devik Jain Nov 19 (Reuters) - The Nasdaq was set for a record open on Friday as investors sought sectors less exposed to economic ructions ahead of voting on President Joe Biden's $1.75 trillion spending bill, while rising COVID-19 cases in Europe also dented sentiment. The U.S. House of Representatives early on Friday delayed an anticipated vote on passage of Biden's social programs and climate change investment bill, and reconvened at 8 a.m. EST (1300 GMT) to complete the legislation.
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On the other hand, carriers including Delta Air Lines DAL.N, United Airlines UAL.O and American Airlines AAL.O, and cruiseliners Norwegian Cruise Line NCLH.N and Carnival Corp CCL.N fell between 1.4% and 3.3%. By Ambar Warrick and Devik Jain Nov 19 (Reuters) - The Nasdaq was set for a record open on Friday as investors sought sectors less exposed to economic ructions ahead of voting on President Joe Biden's $1.75 trillion spending bill, while rising COVID-19 cases in Europe also dented sentiment. The S&P 500 .SPX and Dow Jones .DJI were set to fall tracking losses in banks, airlines and other economically sensitive sectors.
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On the other hand, carriers including Delta Air Lines DAL.N, United Airlines UAL.O and American Airlines AAL.O, and cruiseliners Norwegian Cruise Line NCLH.N and Carnival Corp CCL.N fell between 1.4% and 3.3%. By Ambar Warrick and Devik Jain Nov 19 (Reuters) - The Nasdaq was set for a record open on Friday as investors sought sectors less exposed to economic ructions ahead of voting on President Joe Biden's $1.75 trillion spending bill, while rising COVID-19 cases in Europe also dented sentiment. Chipmaker Nvidia NVDA.O also boosted Nasdaq futures, rising 1.3% in heavy trade after posting strong quarterly results late Wednesday.
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On the other hand, carriers including Delta Air Lines DAL.N, United Airlines UAL.O and American Airlines AAL.O, and cruiseliners Norwegian Cruise Line NCLH.N and Carnival Corp CCL.N fell between 1.4% and 3.3%. By Ambar Warrick and Devik Jain Nov 19 (Reuters) - The Nasdaq was set for a record open on Friday as investors sought sectors less exposed to economic ructions ahead of voting on President Joe Biden's $1.75 trillion spending bill, while rising COVID-19 cases in Europe also dented sentiment. The S&P 500 .SPX and Dow Jones .DJI were set to fall tracking losses in banks, airlines and other economically sensitive sectors.
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4030.0
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2021-11-18 00:00:00 UTC
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Noteworthy Thursday Option Activity: BBY, AAL, GPS
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AAL
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https://www.nasdaq.com/articles/noteworthy-thursday-option-activity%3A-bby-aal-gps
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nan
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nan
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Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in Best Buy Inc (Symbol: BBY), where a total volume of 12,782 contracts has been traded thus far today, a contract volume which is representative of approximately 1.3 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 59.4% of BBY's average daily trading volume over the past month, of 2.2 million shares. Especially high volume was seen for the $136 strike call option expiring November 19, 2021, with 1,632 contracts trading so far today, representing approximately 163,200 underlying shares of BBY. Below is a chart showing BBY's trailing twelve month trading history, with the $136 strike highlighted in orange:
American Airlines Group Inc (Symbol: AAL) options are showing a volume of 161,422 contracts thus far today. That number of contracts represents approximately 16.1 million underlying shares, working out to a sizeable 55% of AAL's average daily trading volume over the past month, of 29.3 million shares. Particularly high volume was seen for the $20 strike call option expiring June 17, 2022, with 21,203 contracts trading so far today, representing approximately 2.1 million underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $20 strike highlighted in orange:
And The Gap Inc (Symbol: GPS) options are showing a volume of 32,694 contracts thus far today. That number of contracts represents approximately 3.3 million underlying shares, working out to a sizeable 53.6% of GPS's average daily trading volume over the past month, of 6.1 million shares. Especially high volume was seen for the $24 strike put option expiring December 03, 2021, with 5,099 contracts trading so far today, representing approximately 509,900 underlying shares of GPS. Below is a chart showing GPS's trailing twelve month trading history, with the $24 strike highlighted in orange:
For the various different available expirations for BBY options, AAL options, or GPS options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Particularly high volume was seen for the $20 strike call option expiring June 17, 2022, with 21,203 contracts trading so far today, representing approximately 2.1 million underlying shares of AAL. Below is a chart showing BBY's trailing twelve month trading history, with the $136 strike highlighted in orange: American Airlines Group Inc (Symbol: AAL) options are showing a volume of 161,422 contracts thus far today. That number of contracts represents approximately 16.1 million underlying shares, working out to a sizeable 55% of AAL's average daily trading volume over the past month, of 29.3 million shares.
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That number of contracts represents approximately 16.1 million underlying shares, working out to a sizeable 55% of AAL's average daily trading volume over the past month, of 29.3 million shares. Particularly high volume was seen for the $20 strike call option expiring June 17, 2022, with 21,203 contracts trading so far today, representing approximately 2.1 million underlying shares of AAL. Below is a chart showing BBY's trailing twelve month trading history, with the $136 strike highlighted in orange: American Airlines Group Inc (Symbol: AAL) options are showing a volume of 161,422 contracts thus far today.
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That number of contracts represents approximately 16.1 million underlying shares, working out to a sizeable 55% of AAL's average daily trading volume over the past month, of 29.3 million shares. Below is a chart showing BBY's trailing twelve month trading history, with the $136 strike highlighted in orange: American Airlines Group Inc (Symbol: AAL) options are showing a volume of 161,422 contracts thus far today. Particularly high volume was seen for the $20 strike call option expiring June 17, 2022, with 21,203 contracts trading so far today, representing approximately 2.1 million underlying shares of AAL.
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Below is a chart showing GPS's trailing twelve month trading history, with the $24 strike highlighted in orange: For the various different available expirations for BBY options, AAL options, or GPS options, visit StockOptionsChannel.com. Below is a chart showing BBY's trailing twelve month trading history, with the $136 strike highlighted in orange: American Airlines Group Inc (Symbol: AAL) options are showing a volume of 161,422 contracts thus far today. That number of contracts represents approximately 16.1 million underlying shares, working out to a sizeable 55% of AAL's average daily trading volume over the past month, of 29.3 million shares.
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4031.0
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2021-11-16 00:00:00 UTC
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S&P 500 Movers: NCLH, HD
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AAL
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https://www.nasdaq.com/articles/sp-500-movers%3A-nclh-hd
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nan
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nan
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In early trading on Tuesday, shares of Home Depot topped the list of the day's best performing components of the S&P 500 index, trading up 3.9%. Year to date, Home Depot registers a 45.2% gain.
And the worst performing S&P 500 component thus far on the day is Norwegian Cruise Line Holdings, trading down 6.9%. Norwegian Cruise Line Holdings is lower by about 6.6% looking at the year to date performance.
Two other components making moves today are American Airlines Group, trading down 3.4%, and West Pharmaceutical Services, trading up 2.8% on the day.
VIDEO: S&P 500 Movers: NCLH, HD
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Year to date, Home Depot registers a 45.2% gain. And the worst performing S&P 500 component thus far on the day is Norwegian Cruise Line Holdings, trading down 6.9%. Norwegian Cruise Line Holdings is lower by about 6.6% looking at the year to date performance.
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Year to date, Home Depot registers a 45.2% gain. And the worst performing S&P 500 component thus far on the day is Norwegian Cruise Line Holdings, trading down 6.9%. Norwegian Cruise Line Holdings is lower by about 6.6% looking at the year to date performance.
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In early trading on Tuesday, shares of Home Depot topped the list of the day's best performing components of the S&P 500 index, trading up 3.9%. And the worst performing S&P 500 component thus far on the day is Norwegian Cruise Line Holdings, trading down 6.9%. Two other components making moves today are American Airlines Group, trading down 3.4%, and West Pharmaceutical Services, trading up 2.8% on the day.
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In early trading on Tuesday, shares of Home Depot topped the list of the day's best performing components of the S&P 500 index, trading up 3.9%. Year to date, Home Depot registers a 45.2% gain. And the worst performing S&P 500 component thus far on the day is Norwegian Cruise Line Holdings, trading down 6.9%.
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4032.0
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2021-11-15 00:00:00 UTC
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GLOBAL MARKETS-Upbeat China data bolsters sentiment, oil tumbles
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AAL
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https://www.nasdaq.com/articles/global-markets-upbeat-china-data-bolsters-sentiment-oil-tumbles-2021-11-15
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nan
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nan
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By Dhara Ranasinghe
LONDON, Nov 15 (Reuters) - World stock markets held near recent record highs on Monday as upbeat Chinese economic data eased concerns about a slowdown in the world's No.2 economy, although falling mainland house prices and rising COVID cases across Europe tempered the optimism.
Annual growth in Chinese retail sales and industrial output beat forecasts, with the bounce in consumption a positive given pandemic restrictions.
But in a negative sign for the stressed housing market, China's new home prices fell 0.2% month-on-month in October, the biggest decline since February 2015. And economists at CBA said there was a chance the Chinese central bank would cut bank reserve requirements (RRR) this week to support activity.
MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS rose 0.4%, while MSCI's world stock index hovered near last week's record peaks .MIWD00000PUS.
Australia's dollar also took comfort from the Chinese data, rallying almost half a percent AUD=.
Europe's broad STOXX 600 index .STOXXbriefly touched a fresh record high and U.S. equity futures pointed to a firm open for Wall Street ESc1, YMc1.
"The big growth worry right now is China," said Timothy Graf, head of macro strategy for EMEA at State Street in London.
"And I guess today, it's good to see that the domestic side is perhaps not quite as vulnerable as was perhaps previously feared."
Japan's Nikkei .N225closed almost 0.6% higher. Data showing economic activity shrank by more than expected in the third quarter boosted expectations for aggressive fiscal stimulus.
Yet there was also a note of caution in world markets, with latest COVID headlines tempering sentiment in Europe and supporting safe-haven bond markets.
Austria slapped a lockdown on people unvaccinated against the coronavirus on Monday as infections rose across Europe, with Germany considering tighter curbs and Britain expanding its booster programme to younger adults.
Europe has again become the epicentre of the pandemic, prompting some countries to consider re-imposing restrictions in the run-up to Christmas and stirring debate over whether vaccines alone are enough to tame COVID-19.
Brent crude LCOc1 futures tumbled 1.6% to $80.85 a barrel on expectations of increasing supply, with higher energy costs and rising COVID-19 cases also seen weighing on demand.
U.S. West Texas Intermediate crude CLc1 lost 1.4% to $79.65. O/R
Elsewhere, the United Nations climate conference in Scotland managed to hammer out a deal on emissions, but only by watering down a commitment to phase out coal.
The agreement hurt miners' shares. China Shenhua Energy 1088.HK and Yanzhou Coal 1171.HK fell 1% and 2.4% respectively in Hong Kong; UK-listed miners Glencore GLEN.L, Rio Tinto RIO.L and Anglo American AAL.L tumbled 1.4-2.4%.
Royal Dutch Shell RDSa.L was also in focus after announcing it would scrap its dual share structure and move its head office to Britain from the Netherlands.
CENTRAL BANK WATCH
Major central banks' response to the emergence of inflation pressures also remained in the market spotlight.
Persistent supply chain bottlenecks and soaring energy costs are slowing euro zone growth and will keep inflation high for even longer than had been thought, European Central Bank chief Christine Lagarde said on Monday.
After bond yields rose sharply last week following strong U.S. inflation data, a calmer tone resurfaced in major bond markets.
Germany's 10-year Bund yield was a touch lower at -0.26% DE10YT=RR, and benchmark 10-year U.S. Treasury yields fell 3 basis points to 1.55% US10YT=RRafter jumping 11 bps last week as markets positioned for early monetary tightening by the Federal Reserve. FEDWATCH
"On the inflation side, the term transitory isn't appropriate for the conditions we're seeing," said Seema Shah, chief strategist at Principal Global Investors in London.
"We see inflation staying higher for longer. One reason that (bond) markets sold off last week was that there were signs that the rise in price pressures was broadening out".
Higher U.S. yields have combined with general risk aversion to benefit the dollar, which just boasted its best week in almost three months. Against a basket of currencies, the dollar was a touch lower at 95.058=USD but near its highest since July 2020.
It held at 113.83 yen JPY=, while the euro steadied at around $1.1445 EUR= but remained vulnerable.
Mark Haefele, UBS Global Wealth Management's CIO, said he saw further dollar strength against the yen, euro and Swiss franc and forecast the euro to fall to $1.10 by end-2022.
"We advise clients to position for a stronger dollar, with currency trades being one means of adding yield to portfolios," he said in a note.
Emerging markets http://tmsnrt.rs/2ihRugV
Global asset performance http://tmsnrt.rs/2yaDPgn
Europe's Covid cases take edge of stock market rallyhttps://tmsnrt.rs/3Ck7G6p
The US dollar indexhttps://tmsnrt.rs/3oy8MGT
(Reporting by Dhara Ranasinghe; Additional reporting by Wayne Cole in Sydney; Editing by Angus MacSwan and Chizu Nomiyama)
((Dhara.Ranasinghe@thomsonreuters.com; +442075422684;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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China Shenhua Energy 1088.HK and Yanzhou Coal 1171.HK fell 1% and 2.4% respectively in Hong Kong; UK-listed miners Glencore GLEN.L, Rio Tinto RIO.L and Anglo American AAL.L tumbled 1.4-2.4%. Austria slapped a lockdown on people unvaccinated against the coronavirus on Monday as infections rose across Europe, with Germany considering tighter curbs and Britain expanding its booster programme to younger adults. Persistent supply chain bottlenecks and soaring energy costs are slowing euro zone growth and will keep inflation high for even longer than had been thought, European Central Bank chief Christine Lagarde said on Monday.
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China Shenhua Energy 1088.HK and Yanzhou Coal 1171.HK fell 1% and 2.4% respectively in Hong Kong; UK-listed miners Glencore GLEN.L, Rio Tinto RIO.L and Anglo American AAL.L tumbled 1.4-2.4%. By Dhara Ranasinghe LONDON, Nov 15 (Reuters) - World stock markets held near recent record highs on Monday as upbeat Chinese economic data eased concerns about a slowdown in the world's No.2 economy, although falling mainland house prices and rising COVID cases across Europe tempered the optimism. MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS rose 0.4%, while MSCI's world stock index hovered near last week's record peaks .MIWD00000PUS.
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China Shenhua Energy 1088.HK and Yanzhou Coal 1171.HK fell 1% and 2.4% respectively in Hong Kong; UK-listed miners Glencore GLEN.L, Rio Tinto RIO.L and Anglo American AAL.L tumbled 1.4-2.4%. By Dhara Ranasinghe LONDON, Nov 15 (Reuters) - World stock markets held near recent record highs on Monday as upbeat Chinese economic data eased concerns about a slowdown in the world's No.2 economy, although falling mainland house prices and rising COVID cases across Europe tempered the optimism. Germany's 10-year Bund yield was a touch lower at -0.26% DE10YT=RR, and benchmark 10-year U.S. Treasury yields fell 3 basis points to 1.55% US10YT=RRafter jumping 11 bps last week as markets positioned for early monetary tightening by the Federal Reserve.
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China Shenhua Energy 1088.HK and Yanzhou Coal 1171.HK fell 1% and 2.4% respectively in Hong Kong; UK-listed miners Glencore GLEN.L, Rio Tinto RIO.L and Anglo American AAL.L tumbled 1.4-2.4%. Germany's 10-year Bund yield was a touch lower at -0.26% DE10YT=RR, and benchmark 10-year U.S. Treasury yields fell 3 basis points to 1.55% US10YT=RRafter jumping 11 bps last week as markets positioned for early monetary tightening by the Federal Reserve. One reason that (bond) markets sold off last week was that there were signs that the rise in price pressures was broadening out".
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4033.0
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2021-11-15 00:00:00 UTC
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American Airlines bets on non-stop travel demand as it relaunches India flights
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https://www.nasdaq.com/articles/american-airlines-bets-on-non-stop-travel-demand-as-it-relaunches-india-flights-2021-11-15
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nan
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By Aditi Shah
NEW DELHI, Nov 15 (Reuters) - American Airlines AAL.O relaunched flights to India this week, nearly a decade after stopping them, looking to capitalise on growing demand for non-stop travel amid the coronavirus pandemic, a senior executive of the airline told Reuters.
With travel demand bouncing back at home, American Airlines wants to expand its international network and India was "one of the biggest untapped markets" for it, said Tom Lattig, managing director of EMEA sales.
"A lot of customers really want to fly non-stop, particularly as we've come through the pandemic. We know there is huge demand for travel between India and the United States so there is an opportunity right now in the middle of the pandemic to come back," Lattig said in an interview in New Delhi.
American Airlines, which suspended services to India in 2012, started flying between New Delhi and New York on the weekend and will add flights between India's tech city of Bengaluru and Seattle in March.
If it succeeds with those two routes, it will add services to India's financial capital of Mumbai, Lattig said.
The expansion would also depend on the availability of aircraft as it awaits deliveries of wide-body aircraft from Boeing BA.N, he said.
"There are more opportunities than we actually have aircraft for," Lattig said.
The U.S. carrier is already flying 90% of its pre-pandemic capacity at home and has even deployed widebody planes on some routes, Lattig said.
Demand from Europe and Britain was also strong, especially after the United States opened its borders last week, and demand from Mexico and parts of Latin America had exceeded 2019 levels, he said.
But the airline had yet to see any meaningful recovery in Asia, where it is flying less than 25% of pre-pandemic capacity, Lattig said, adding that the slow rate of vaccinations in the region was partly to blame.
Most of the current demand globally is from those visiting friends and family or for leisure. Lattig expected it would be the end of 2023 before corporate travel recovers to 2019 levels, with Asia being the slowest region to bounce back.
Lattig said as American Airlines looks to establish a presence in India, it was banking on its service and a four-class cabin to better compete with rivals like Air India, which was acquired by India's Tata Group, and United Airlines UAL.O - both offering direct flights to the United States.
The airline will also leverage its partnership with U.S. low-cost carrier JetBlue and code share with India's biggest airline - budget carrier IndiGo INGL.NS - to feed its network by connecting travellers from multiple cities.
"We're going be the newcomer and we are going to be aggressive about establishing a place for ourselves," Lattig said.
(Reporting by Aditi Shah Editing by Robert Birsel)
((aditi.shah@tr.com; +91-11-4954 8023, +91-11-3015 8023; Reuters Messaging: twitter: @aditishahsays))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Aditi Shah NEW DELHI, Nov 15 (Reuters) - American Airlines AAL.O relaunched flights to India this week, nearly a decade after stopping them, looking to capitalise on growing demand for non-stop travel amid the coronavirus pandemic, a senior executive of the airline told Reuters. With travel demand bouncing back at home, American Airlines wants to expand its international network and India was "one of the biggest untapped markets" for it, said Tom Lattig, managing director of EMEA sales. We know there is huge demand for travel between India and the United States so there is an opportunity right now in the middle of the pandemic to come back," Lattig said in an interview in New Delhi.
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By Aditi Shah NEW DELHI, Nov 15 (Reuters) - American Airlines AAL.O relaunched flights to India this week, nearly a decade after stopping them, looking to capitalise on growing demand for non-stop travel amid the coronavirus pandemic, a senior executive of the airline told Reuters. With travel demand bouncing back at home, American Airlines wants to expand its international network and India was "one of the biggest untapped markets" for it, said Tom Lattig, managing director of EMEA sales. The airline will also leverage its partnership with U.S. low-cost carrier JetBlue and code share with India's biggest airline - budget carrier IndiGo INGL.NS - to feed its network by connecting travellers from multiple cities.
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By Aditi Shah NEW DELHI, Nov 15 (Reuters) - American Airlines AAL.O relaunched flights to India this week, nearly a decade after stopping them, looking to capitalise on growing demand for non-stop travel amid the coronavirus pandemic, a senior executive of the airline told Reuters. With travel demand bouncing back at home, American Airlines wants to expand its international network and India was "one of the biggest untapped markets" for it, said Tom Lattig, managing director of EMEA sales. Lattig said as American Airlines looks to establish a presence in India, it was banking on its service and a four-class cabin to better compete with rivals like Air India, which was acquired by India's Tata Group, and United Airlines UAL.O - both offering direct flights to the United States.
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By Aditi Shah NEW DELHI, Nov 15 (Reuters) - American Airlines AAL.O relaunched flights to India this week, nearly a decade after stopping them, looking to capitalise on growing demand for non-stop travel amid the coronavirus pandemic, a senior executive of the airline told Reuters. We know there is huge demand for travel between India and the United States so there is an opportunity right now in the middle of the pandemic to come back," Lattig said in an interview in New Delhi. The U.S. carrier is already flying 90% of its pre-pandemic capacity at home and has even deployed widebody planes on some routes, Lattig said.
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4034.0
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2021-11-15 00:00:00 UTC
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European shares slip as lockdown worries, miners drag
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AAL
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https://www.nasdaq.com/articles/european-shares-slip-as-lockdown-worries-miners-drag-2021-11-15
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For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window
Nov 15 (Reuters) - European shares kicked off the week on a tepid note as investors fretted over the possibility of fresh COVID-19 lockdowns, while miners were hit the most following a tumble in metal prices after China promised to "phase down" coal at the COP26 summit.
The STOXX 600 .STOXX index was flat, weighed down by a 1% drop in miners .SXPP as iron ore and metal prices tumbled.
Observers at the U.N. climate talks got a bit nervous on Saturday when representatives of the United States and the EU went into a meeting with their counterparts from China and India to discuss some of the deal's language around "phasing out" coal. {MET/L]
UK-listed miners Glencore GLEN.L, Rio Tinto RIO.L and Anglo American AAL.L were down between 0.9% and 1.3%.
Adding to the caution, Austria became the first European country to reinstate a fresh lockdown, placing millions of unvaccinated people under restrictions amid record-level infection rates.
Shares of Philips PHG.AS, which is recalling ventilators due to use of parts containing a potentially hazardous foam, slid 8.5% after the medical equipment maker announced it was in dicussions with U.S. regulators following a new inspection of one of its facilities.
Airbus AIR.PA jumped 2.6% after it got a multi-billion-dollar order for 255 single-aisle A321neo passenger jets from private-equity firm Indigo Partners' portfolio airlines.
(Reporting by Anisha Sircar in Bengaluru; Editing by Sherry Jacob-Phillips)
((Anisha.Sircar@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.
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{MET/L] UK-listed miners Glencore GLEN.L, Rio Tinto RIO.L and Anglo American AAL.L were down between 0.9% and 1.3%. Observers at the U.N. climate talks got a bit nervous on Saturday when representatives of the United States and the EU went into a meeting with their counterparts from China and India to discuss some of the deal's language around "phasing out" coal. Adding to the caution, Austria became the first European country to reinstate a fresh lockdown, placing millions of unvaccinated people under restrictions amid record-level infection rates.
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{MET/L] UK-listed miners Glencore GLEN.L, Rio Tinto RIO.L and Anglo American AAL.L were down between 0.9% and 1.3%. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window Nov 15 (Reuters) - European shares kicked off the week on a tepid note as investors fretted over the possibility of fresh COVID-19 lockdowns, while miners were hit the most following a tumble in metal prices after China promised to "phase down" coal at the COP26 summit. The STOXX 600 .STOXX index was flat, weighed down by a 1% drop in miners .SXPP as iron ore and metal prices tumbled.
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{MET/L] UK-listed miners Glencore GLEN.L, Rio Tinto RIO.L and Anglo American AAL.L were down between 0.9% and 1.3%. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window Nov 15 (Reuters) - European shares kicked off the week on a tepid note as investors fretted over the possibility of fresh COVID-19 lockdowns, while miners were hit the most following a tumble in metal prices after China promised to "phase down" coal at the COP26 summit. Airbus AIR.PA jumped 2.6% after it got a multi-billion-dollar order for 255 single-aisle A321neo passenger jets from private-equity firm Indigo Partners' portfolio airlines.
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{MET/L] UK-listed miners Glencore GLEN.L, Rio Tinto RIO.L and Anglo American AAL.L were down between 0.9% and 1.3%. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window Nov 15 (Reuters) - European shares kicked off the week on a tepid note as investors fretted over the possibility of fresh COVID-19 lockdowns, while miners were hit the most following a tumble in metal prices after China promised to "phase down" coal at the COP26 summit. The STOXX 600 .STOXX index was flat, weighed down by a 1% drop in miners .SXPP as iron ore and metal prices tumbled.
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4035.0
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2021-11-15 00:00:00 UTC
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London's FTSE 100 flat as losses in miners overshadow Shell cheer
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https://www.nasdaq.com/articles/londons-ftse-100-flat-as-losses-in-miners-overshadow-shell-cheer-2021-11-15
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For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window
FTSE 100 and FTSE 250 flat
Nov 15 (Reuters) - UK's FTSE 100 was flat on Monday, as gains in oil major Royal Dutch Shell on plans to ditch its dual share structure were offset by subdued miners hit by global moves to reduce coal use and a big drop in China's steel production.
The blue-chip FTSE 100 .FTSE was unchanged at 0817 GMT, with miners Anglo American AAL.L, Glencore GLEN.L and BHP Group BHPB.L down between 0.7% and 1.2%, after U.N. climate talks ended Saturday with a deal that for the first time targeted fossil fuels as the key driver of global warming.
Data also showed crude steel output in China, the world's top producer of the metal, fell for the fifth straight month in October amid curbs.
On the bright side, Shell RDSa.L gained 1.8% after the energy giant said it will scrap its dual share system in favour of a single class of shares to boost shareholder payouts and simplify its structure.
BT Group BT.L gained 1.8% after Reuters reported citing sources that telecoms tycoon Patrick Drahi is looking to increase his stake in the British company, betting its fibre-optic rollout will boost value.
Cineworld CINE.L jumped 5.6% after reporting an improvement in October box office revenue as COVID-19 restrictions eased.
(Reporting by Bansari Mayur Kamdar in Bengaluru; Editing by Rashmi Aich)
((BansariMayur.Kamdar@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.
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The blue-chip FTSE 100 .FTSE was unchanged at 0817 GMT, with miners Anglo American AAL.L, Glencore GLEN.L and BHP Group BHPB.L down between 0.7% and 1.2%, after U.N. climate talks ended Saturday with a deal that for the first time targeted fossil fuels as the key driver of global warming. Data also showed crude steel output in China, the world's top producer of the metal, fell for the fifth straight month in October amid curbs. BT Group BT.L gained 1.8% after Reuters reported citing sources that telecoms tycoon Patrick Drahi is looking to increase his stake in the British company, betting its fibre-optic rollout will boost value.
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The blue-chip FTSE 100 .FTSE was unchanged at 0817 GMT, with miners Anglo American AAL.L, Glencore GLEN.L and BHP Group BHPB.L down between 0.7% and 1.2%, after U.N. climate talks ended Saturday with a deal that for the first time targeted fossil fuels as the key driver of global warming. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window FTSE 100 and FTSE 250 flat Nov 15 (Reuters) - UK's FTSE 100 was flat on Monday, as gains in oil major Royal Dutch Shell on plans to ditch its dual share structure were offset by subdued miners hit by global moves to reduce coal use and a big drop in China's steel production. On the bright side, Shell RDSa.L gained 1.8% after the energy giant said it will scrap its dual share system in favour of a single class of shares to boost shareholder payouts and simplify its structure.
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The blue-chip FTSE 100 .FTSE was unchanged at 0817 GMT, with miners Anglo American AAL.L, Glencore GLEN.L and BHP Group BHPB.L down between 0.7% and 1.2%, after U.N. climate talks ended Saturday with a deal that for the first time targeted fossil fuels as the key driver of global warming. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window FTSE 100 and FTSE 250 flat Nov 15 (Reuters) - UK's FTSE 100 was flat on Monday, as gains in oil major Royal Dutch Shell on plans to ditch its dual share structure were offset by subdued miners hit by global moves to reduce coal use and a big drop in China's steel production. BT Group BT.L gained 1.8% after Reuters reported citing sources that telecoms tycoon Patrick Drahi is looking to increase his stake in the British company, betting its fibre-optic rollout will boost value.
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The blue-chip FTSE 100 .FTSE was unchanged at 0817 GMT, with miners Anglo American AAL.L, Glencore GLEN.L and BHP Group BHPB.L down between 0.7% and 1.2%, after U.N. climate talks ended Saturday with a deal that for the first time targeted fossil fuels as the key driver of global warming. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window FTSE 100 and FTSE 250 flat Nov 15 (Reuters) - UK's FTSE 100 was flat on Monday, as gains in oil major Royal Dutch Shell on plans to ditch its dual share structure were offset by subdued miners hit by global moves to reduce coal use and a big drop in China's steel production. Data also showed crude steel output in China, the world's top producer of the metal, fell for the fifth straight month in October amid curbs.
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4036.0
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2021-11-12 00:00:00 UTC
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3 Stocks to Watch as the Global Travel Recovery Comes to a Halt
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https://www.nasdaq.com/articles/3-stocks-to-watch-as-the-global-travel-recovery-comes-to-a-halt-2021-11-12
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Winter is coming. And that could mean a resurgent Covid-19, particularly the fast-spreading Delta variant, which would be devastating to the global travel recovery that is underway but remains fragile.
Business travel is especially vulnerable to any upsurge in the pandemic. A recent Global Corporate Travel Survey by Morgan Stanley found that business travel budgets this year remain 50% lower than in 2019, and are expected to remain below pre-pandemic levels next year as well.
And while airline and other travel stocks have gotten a bump lately from the reopening of the U.S. border to vaccinated international travelers, the global travel recovery could quickly grind to a halt if things take a turn for the worst this winter, leaving many companies in the lurch.
7 Best Cryptocurrencies That Could Hit New Highs Soon
Here are three travel stocks to keep an eye on in coming months.
American Airlines (NASDAQ:AAL)
Expedia (NASDAQ:EXPE)
Airbnb (NASDAQ:ABNB)
Stocks to Watch: American Airlines (AAL)
AAL) airplane waiting on the tarmac. Represents airline stocks." width="300" height="169">
Source: GagliardiPhotography / Shutterstock.com
Fort Worth, Texas-based American Airlines isn’t just the biggest carrier in the U.S., it is the largest airline in the world, sending nearly 7,000 flights a day to more than 350 destinations globally. If any company is likely to be hurt by a slowdown in travel, it is American Airlines.
When the Covid-19 pandemic hit in the first quarter of 2020, the carrier immediately lost $2.2 billion as borders closed and international flights ground to a halt. While American Airlines is managing to recover now, it wouldn’t take much to send the company and its stock into another tailspin.
Year-to-date, AAL stock is up 46% at $22.14 a share. However, the company’s share price has risen less than 1% in the past six months, and it remains 62% below its pre-pandemic peak of nearly $60 a share.
At the end of October, American Airlines reported a $169 million profit for the third quarter due in large part to $990 million in federal payroll support.
Revenue for Q3 totaled $8.97 billion, which was more than double the $3.17 billion achieved a year earlier but still down 25% from the same period of 2019 before Covid-19’s impact was felt. Without government payroll support, American Airlines would have reported a third quarter loss of $0.99 per share.
Expedia (EXPE)
EXPE) group logo" width="300" height="169">
Source: VDB Photos / Shutterstock.com
When it comes to online travel booking, Expedia Group remains a market leader. The company, which owns brands such as Hotels.com, CarRentals.com and Travelocity, captures a good portion of the $432 billion online travel agent sector.
Currently ranked second by market capitalization in the U.S. behind Booking.com parent Booking Holdings (NASDAQ:BKNG), Expedia’s stock has performed strongly as the economy reopened and people began traveling more this year.
Through nearly 11 months, EXPE stock is up 43% at $188.12 per share. However, like many travel stocks, most of Expedia’s gains came at the start of the year. In the last six months, the company’s share price has risen only 8%.
7 F-Rated Stocks to Sell Before We Reach Christmas
Expedia’s earnings remain solid. In early November, the company reported Q3 results that showed revenue grew 97% to $2.96 billion. Gross bookings rose 117% in the quarter. Net income came in at $362 million, or $2.26 per share.
The latest results easily topped analysts forecasts for Q3 revenue of $2.73 billion and earnings per share (EPS) of $1.65. However, any further slowdown in travel could be devastating to the company. In the third quarter of 2020, Expedia reported a net loss of $221 million due to the ongoing impacts of the global pandemic.
Stocks to Watch: Airbnb (ABNB)
ABNB) app on a smartphone screen." width="300" height="169">
Source: AngieYeoh / Shutterstock.com
Airbnb, the online marketplace for homestays and vacation rentals, has felt the effects of the pandemic more acutely than most companies.
A publicly traded company for less than a year, ABNB stock rallied after its December 2020 IPO, rising to a peak of $220 a share before collapsing and falling 40% to $132 a share this past spring as doubts about its ability to recover persisted.
The share price has only begun to recover since the end of August, rising 33% since then to its current price of $194.94. Investor sentiment turned optimistic after the company’s latest financial results showed bookings through its platform growing significantly.
For the third quarter, Airbnb reported that its profits surged 280% from a year earlier when the company was in the pandemic doldrums. Q3 revenue of $2.24 billion trumped the $2.05 billion that analysts had expected.
The total number of bookings made through Airbnb during the July through September period rose nearly 30% from a year earlier. Net income surged 280% to $834 million on a year-over-year basis, which was a quarterly record for the company.
Going forward, Airbnb said it expects revenue of between $1.39 billion and $1.48 billion in this year’s fourth quarter, which is in line with analyst expectations. Any retreat from that outlook will surely cause a reversal in ABNB stock.
On the date of publication, Joel Baglole 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.
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.
The post 3 Stocks to Watch as the Global Travel Recovery Comes to a Halt 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.
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American Airlines (NASDAQ:AAL) Expedia (NASDAQ:EXPE) Airbnb (NASDAQ:ABNB) Stocks to Watch: American Airlines (AAL) AAL) airplane waiting on the tarmac. Year-to-date, AAL stock is up 46% at $22.14 a share. When the Covid-19 pandemic hit in the first quarter of 2020, the carrier immediately lost $2.2 billion as borders closed and international flights ground to a halt.
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American Airlines (NASDAQ:AAL) Expedia (NASDAQ:EXPE) Airbnb (NASDAQ:ABNB) Stocks to Watch: American Airlines (AAL) AAL) airplane waiting on the tarmac. Year-to-date, AAL stock is up 46% at $22.14 a share. Expedia (EXPE) EXPE) group logo" width="300" height="169"> Source: VDB Photos / Shutterstock.com When it comes to online travel booking, Expedia Group remains a market leader.
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American Airlines (NASDAQ:AAL) Expedia (NASDAQ:EXPE) Airbnb (NASDAQ:ABNB) Stocks to Watch: American Airlines (AAL) AAL) airplane waiting on the tarmac. Year-to-date, AAL stock is up 46% at $22.14 a share. And while airline and other travel stocks have gotten a bump lately from the reopening of the U.S. border to vaccinated international travelers, the global travel recovery could quickly grind to a halt if things take a turn for the worst this winter, leaving many companies in the lurch.
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American Airlines (NASDAQ:AAL) Expedia (NASDAQ:EXPE) Airbnb (NASDAQ:ABNB) Stocks to Watch: American Airlines (AAL) AAL) airplane waiting on the tarmac. Year-to-date, AAL stock is up 46% at $22.14 a share. Expedia (EXPE) EXPE) group logo" width="300" height="169"> Source: VDB Photos / Shutterstock.com When it comes to online travel booking, Expedia Group remains a market leader.
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4037.0
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2021-11-11 00:00:00 UTC
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Hey, Growth Investors: Real Estate Is for You, Too
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https://www.nasdaq.com/articles/hey-growth-investors%3A-real-estate-is-for-you-too
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The Motley Fool's Matt Argersinger is here to explain to you about real estate investing. We're talking properties!
To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center. To get started investing, check out our quick-start guide to investing in stocks. A full transcript follows the video.
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This video was recorded on Nov. 3, 2021.
David Gardner: Real estate, on the one hand, the phrase has an allure, it's land, land's real, its buildings, properties, estates. In many ways, real estate is an investment choice and opportunity that more Americans naturally and intuitively understand, I would say well more than the stock market. Many of us have mortgages, which are loans we took out to own a home, and we pay that off over time confident that the value of our property, aided by inflation, will be well more in time than what we paid to own it, and that makes us real estate investors. Too you could be a landlord or a realtor. Anyway, the stuff of real estate is much more understandable to most of us listening right now than the stock market's wily ways. Let's not forget that another way to invest in real estate would be in stocks within that industry. REITs, many of them real estate investment trusts that pay outsized dividends, looking for some investment income in your life?
Real estate can be your friend. Yet, speaking only for myself, real estate hasn't been much of a friend to me, I've never put up big numbers with real estate investments, I've loved my houses over the years, maybe new one every decade, but the actual increase in value of these hard assets has been for me paltry. Now I hasten to add, I can live in my house, I've never been able to live in my stocks, I really love that about my houses, but no, my investing money has stayed pretty much 100 percent in common stocks. Not only do I have no regrets about that, but it's a much joy and prosperity. Real estate hasn't really been my friend, we haven't got to know each other too well over the years, but I have friends. You'll get to know them every week on this podcast, and one of them for a long time now is Matthew Argersinger, investor, analyst and advisor here at the Motley Fool several years ago, that made to my mind a radical shift from finding Rule Breakers to leading our fellow Fools into largely uncharted territory for our company at the time, territory that you and I can call real estate. Now Matt is joining me for one special week in which we throw our Rule Breaker branded clipboards and Rule Breaker branded pens, and Rule Breaker branded green eyeshades, and talk not stocks but real estate. Let's learn only on this week's Rule Breaker Investing. [MUSIC]
Welcome back to Rule Breaker Investing, it's time for real estate investing. A lot of people might look at and go, well, are there rules that can be broken in the world of real estate? I would say that my friend and guest this week, Matthew Argersinger broke our own internal rules by even expressing interest in this topic, he has some real life experiences to share. But to take an open up millionacres and have a bunch of services that increasingly we're investing in a building at The Motley Fool, what we realized the relevance of this but we needed somebody with a rule breaker eye and so I'm just delighted that Matt will be joining me very shortly. I do want to mention, this is a sister podcast looking back over this year that's been thinking of other ways to invest. July 21st Venture Adventure with Ollen Douglass, venture capital. That was the focus with Ollen a couple of months back, google it if you didn't get a chance to listen to it, Venture Adventure was a lot of fun. Bitcoin 2021, earlier in this year I had Jim Starwiki, longtime financial journalist and a friend of mine and Aaron Bush to talk it out bitcoin early in the year and in January coming up Aaron is going to return to talk about NFTs, which I'm looking forward to. So of course, most of our focus on this podcast remains on common stocks, and by the way Matt will be talking about those this week as well. But I love that we're having a little forays into other forms of very relevant, very interesting ways to invest your hard earned dollars. So without any further ado then, Matt Argersinger welcome back to Rule Breaker Investing,.
Matt Argersinger: Thank you David, it's great to be back.
David Gardner: You know Matt, you and I definitely are going to talk about real estate, and it's different forms, there's a myriad of opportunities out there. It's a great big world out there, turns out Matt, but you were pointing out to me, there are just real estate stocks this year not having a bad year.
Matt Argersinger: Not at all, David, I was looking at it. If you look at the, as of market close on Monday earlier this week, the S&P 500 is the comment index and benchmark we used at the Motley Fool. It's up 24 percent year to date. It's been a wonderful year by any measure for the stock market, and that's been great for investors. But if you look at the real estate sector of the market, and I'd like to look at the Vanguard Real Estate Index because it's widely tracked and very popular index, it's actually up about 32 percent this year. I'm happy to say that a couple of the services I work on at The Motley Fool, one of them being Real Estate Winners, and one of them being Mogul, where we also recommend real estate stocks and real estate investment trust, our average recommendation this year is up 33 percent.
David Gardner: Wonderful.
Matt Argersinger: I'm feeling really good. It's rare to get a year like that for real estate. I often think as I'm sure most investors do, real estate is the slow moving, you're not going to get rich quick, it's a marathon type of investing asset class, and so it's very rare to get even a double digit annual increase in real estate, and here we are looking at 30 plus percent returns. Of course, coming off what was in 2020 a really bad year for real estate for a lot of reasons, but it's nice to see a real big bounce back in the sector this year.
David Gardner: Thank you for pointing that out, Matt and I would like to mention that Rule Breaker stocks this year, there is no index that Vanguard tracks, but at least a bunch of the ones that I'm invested in and I've been for many years in the Rule Breakers service, I think we're probably under performing. At least my personal portfolio is under performing in the S&P this year. I think real estate might be doubling up on me this year, which is not going to be true every year. Anyway, I'm delighted to know that and I'm not surprised that your services matter. I hope you will plug them once or twice during our conversation because we're very proud of what you're working on. But I'm not surprised to hear that they themselves are beating the market averages because that's been a big focus for you and for me over the years. There are a lot of directions we're going to go in our time together this week Matt, but I thought we should start with your story. Were you raised in a family that were real estate investors? What was your first real estate investment, maybe was it a stock or maybe it was a property? I know you've been playing the role of landlord a little bit in and around the greater DC area. Could you just give us Matt Argersinger, the making of a real estate investor, maybe five minutes or less.
Matt Argersinger: Sure. I joined the Motley Fool in 2008 and was very lucky to get to work with you on Stock Advisor and eventually Rule Breakers, and stock investing was always the game I wanted to be playing and I was so happy and grateful to have that opportunity to work with you and come to the Motley Fool. But so, real estate was probably a side hustle at best, and I never looked at it as really an investment that I want to make a big part of my life, but it just so happens that shortly after my wife and I got married in 2009, we were living in DC in the Capitol Hill neighborhood of DC, and we thought, well, we love this neighborhood, we know we're going to be here for a few more years. My wife was working at the Navy Yard downtown and I had just started the Motley Fool the year before, and so we thought, maybe it's worth seeing if there are any houses that are in real estate that we want to buy to live in instead of renting our apartment, which we've been doing. It came in at an interesting time in the real estate market because of this was 2009, this was after the crash and then the bursting of the real estate, so to speak, and so I remember we would go to a few open houses back in 2007 and it would just be a rush of people in all these houses. But in 2009 if we go to an open house and my wife and I will be the only ones there on occasion [laughs], and we had our pick and we're lucky to find a row house in DC, and David, you know this being a DC native that a lot of the row houses, especially in Capitol Hill and DuPont and those places, they're very narrow, and there's a main house on the top and then usually a basement apartment on the bottom. We found a house that had one of those setups where we could live upstairs and rent out the basement apartment, and help pay roughly what you thought would be like 1/3 or maybe 1/2 of our mortgage, and so it seemed like a really great opportunity. That's what we did, we made an offer, we got a house and shortly after we moved in, we were thinking about how to rent the basement apartment and who we should rent to, and my wife just happened to read this article I will never forget, I think it was in the New York Times about this new up and coming company called Air Bed and Breakfast.
Matt Argersinger: [laughs] Of course, we know today as Airbnb. But back then, there were maybe three, I want to say three or four listings for Airbnb in all of Capitol Hill in DC. We thought, well, that's interesting. The house we bought was right near Union Station, which is the big train station downtown. There'll be a lot of visitors coming to DC, so we thought, let's try this Airbnb thing out. That way we don't have to rent out. We don't have to sign a long-term lease for the tenant. We can just rent it on a short-term basis. It was so successful. I think we listed on Airbnb and within a month, I think we had booked out all of 2010. [laughs].
David Gardner: Wow.
Matt Argersinger: I mean, roughly 25 days of every month, and we probably priced too low. That was probably a reason for that, [laughs] but we just had so much success with that. It really opened our eyes to the opportunity and we were essentially paying our mortgage by Airbnb being the apartment because the rates you get with Airbnb are much higher. Of course, there's a lot more work involved. You're changing out. Guests come in for a few days, they leave you have to turn over the apartment. It's a lot more work, but it opened our eyes and two years later, we bought another property very similar, which had a main unit and then a rental unit attached to it. That just became our way of building wealth in real estate. Later on, I partnered with a friend of mine and we made some commercial real estate investments as well. Today, my wife and I, we still have some properties in DC. We have commercial real estate investments that we've made. It was just delightful a few years ago when I sat down with Austin Smith and a few Fools here, and we said, "The game of real estate has changed." I know we're going to talk about that in a moment, but it's really changed to a point where the individual investor, the Foolish investor, can really get involved in the asset class like never before. We ended up launching Millionacres, and of course, we launched several services, two of which I'm an advisor on. It's just been awesome to really explore this asset class in a way that we think can be very foolish. Really focusing on the principles of long-term investing in the asset class, which wasn't really possible with real estate up until recently. That's a little bit of the story to where I am as a real estate investor.
David Gardner: Wonderful, and speaking of earlier podcasts in 2021, Matt told his story. The date was April 14th. You were on with Jason Moser. That was a delight, telling their stories, volume 2. Matt, I was asking you to give short shrift to your own life story, but we really went into it more at length on April 14th. I highly recommend that to any Fool who enjoys this week's podcasts, you got to know Matt a lot better through that podcast. But sticking to our knitting here, Matt, you've done a nice job, kind of breaking down this week's conversation into three main chunks. I am just going to throw them out upfront then let's get started. Well, you've entitled it how the rules for real estate investing have changed, of course, you added in parentheses, been broken over the past decade. The democratization of this asset class and the opportunities that are out there for everybody listening, that's exciting. That's going to be the first section. The second you've entitled three undeniable long-term trends and one major uncertainty for real estate ahead. Then the third, and probably the most unfortunate of the three sections, the one that I might encourage people to just skip all together if they feel like [laughs] it just went too long this week, you're going to be quizzing me on real estate multibaggers. I will show my lack of knowledge of this entire asset class in this whole industry within stock market terms. You'll be asking me about some of the tickers, which I won't recognize and how they've done, and I'll undershoot and you will make some great points. That's ahead, but let's stay focused.
Matt Argersinger: I can't wait for that by the way. [laughs] I'm so looking forward to that. [laughs]
David Gardner: I'm dreading it, Matt. Thank you though for bringing the preparation that you have. Okay, let's get started. The rules of real estate investing have changed, have been broken over the past decade. What's an example that comes quickly to mind for you, Matt?
Matt Argersinger: The example I can think of is if you go back just 15 years ago, not very long ago, the idea of being able to invest in a institutional quality, piece of real estate or development. Imagine a large-scale office building in New York City, maybe a hotel development in Los Angeles. Something that's a $100 million, $200 million plus capitalization.
David Gardner: Yeah, most of us don't have that kind of change.
Matt Argersinger: No, and never will. The idea of that is just how could you even do that? It's not even possible. Just to throw an example out there, there is a new platform out there called Rex, which I just learned about it I had a meeting with. Literally they're letting you buy pieces of equity in New York City skyscrapers. You're thinking yourself, how does that even work? But they're doing it, and it's possible. That's just one small example, but really this all started back in 2012, the passage of the JOBS Act, Jumpstart Our Business Startup Act, which came out, and what that did was, for the first time it enabled certain classes of investors, mostly accredited investors, but also non-accredited investors to invest in privately listed securities or crowd-funded equity raises. That really opened the door for investors of all kinds, really to get involved in private equity, but also in real estate. Because unlike most asset classes, most real estate is held in private hands and it's in the money for it, and it's managed privately. It's raised for privately. So that asset class just remains so far out of reach until really 2012, and so less than a decade.
David Gardner: You know what I'm thinking about, Matt is I'm thinking about how for the stock market, things have been democratized in recent years by the ability to buy fractional shares, which is certainly Robinhood, but most brokerage firms are headed there if they're not already in the next year or two. Buying pieces of things, buying one part of one Amazon share. Buying, a tiny part of a New York city condominium. Pieces of things.
Matt Argersinger: That's exactly right. It's just pieces of equity that we can allow our portfolio to get exposure to that we otherwise wouldn't be able to. Since really 2012, you've had the spawning of so many crowdfunding platforms like CrowdStreet, RealtyMogul is another one, RealCrowd. If you go to those platforms, essentially every month, they're coming out with new private real estate opportunities that you can invest in. It's amazing that you can sit down really in front of your computer, like having a Robinhood account, you can have an account in a CrowdStreet or elsewhere. With a few clicks of your button, you can invest in a apartment building in Seattle [laughs] if you live on the east coast or you can invest in a hotel in Miami, no matter where you live.
David Gardner: Now, I haven't done this myself, Matt, but I know that a significant part as you launched Millionacres a few years ago and the Mogul offering that Millionacres has, Millionacres, a sister company of The Motley Fool. Matt, in particular, I think CrowdStreet was a platform that you were focusing on at the time. Maybe it's probably an early leader. I know it's still early days for this whole industry, but I'm hearing you mentioned a number of other names now these days. But I've still never done that myself. Some of our listeners are really into this, but many of us haven't visited one of those platforms yet. Could you just briefly describe. Does it look like an Amazon page, but instead of buying, I don't know, new light bulbs? [laughs] Because I'm always running out of light bulbs. Thank God for LED making it so I don't have to change so many light [laughs] bulbs anymore, but anyway, is it just looking down a product page and going oh, yeah, I can buy a piece of that?
Matt Argersinger: Yeah, it is. Most of the sites are very simple to use. You can go and they have their marketplace or their market, and you can click on that and you will see a number of opportunities just across your page. Wow, OK, so here's a retail complex in Florida. Here is a hotel in Salt Lake City, here's an office building in Chicago. Click on it and it will describe to you, OK, what are you investing in, what's the business strategy here? What's the development team behind the deal? What I love about it is it allows us the Motley Foolish investors to really analyze the deal and look at the fundamentals of the deal, the marketplace, the sponsor or the developer. In real estate lingo it's called the sponsor. But what's their pedigree and track record? Really things like that that helps us build the case for recommending these deals to investors. It really reminds me, I keep thinking about, you brought up Robinhood and fractional shares. But I will even go back farther and say this feels like that moment in the early '90s when you had the rise of the Internet, and not only the rise of the Internet but the rise of the online discount broker, and the ability to not get on the phone and spend $50 or $100 of commission [laughs] to buy stock. I mean, you are logged into an account that you created. You're spending maybe at that time still $30 or $40 to buy stock, but it was a lot cheaper and faster than it was. Of course, nowadays we have free trading and fractional trading and it's almost gamified. It's amazing. I feel like real estate is having that early '90s moment.
David Gardner: That's a great comparison. A lot of us don't quite know enough to feel confident that we might want to put our thousands of dollars into that office building versus that other office building across town, that same city or a totally different coasts. But I know part of what you've done is you've developed a rating system, and so part of what Mogul has done is it provides for Mogul members a numerical system that helps them sort through. Of course, you're recommending the ones that you really like that fit with the framework that you are operating off of. In a lot of ways, I think the Motley Fool back in the '90s that you just referred to, we were green lighting the idea that people should buy companies and invest patiently and do it differently from Wall Street. A lot of people need to be nudged to believing that they could even if they weren't finance majors. I wasn't either, but I think you needed the advisor. You needed advice to really embolden you to think that you could invest your money there and do that, and Matt, that's what Mogul is doing.
Matt Argersinger: That's right, and thanks for bringing that up. Yeah, we have a score from 0-100, and so every deal that we recommend in Mogul, we rate from 0-100. Generally, every deal we recommend is going to have a score of at least 75. But really what we're looking at is, what is the risk reward for the investor? The higher the score, we think the better the reward is for the risk taken on any given deal.
David Gardner: Give an example.
Matt Argersinger: Sure. Well, let's see. We recently rated a deal that I'm really excited about. It got a below average score. Maybe it's not the greatest example in the world, but it scored an 81, and it was a hotel redevelopment in Salt Lake City. I wasn't very familiar with Salt Lake City, and I've actually never been there, until I researched this idea, but there's the Union Station, which is the old train depot in downtown Salt Lake City.
Matt Argersinger: Developers can go in there and redevelop it as a five-star hotel. They're going to build more flooring in the back, but they're going to redo the entire depot itself it's right across the street from where the Utah Jazz play. What's fascinating about Salt Lake City, I didn't notice either, is that, there really hasn't been a new full-service hotel in downtown Salt Lake City, built in the last 20 years. The idea that you're going to able to rent a hotel space or a conference room at this really beautiful, iconic building right in downtown Salt Lake City in a few years, once the redevelopment is done sounds really appealing and looked really compelling to me and there was risks involved. We're talking about hospitality and we're talking about a redevelopment. There are risks and so the score probably wasn't as high as it could have been, but still a very compelling idea, especially if we think, of course, in a post-COVID world. We're traveling again. We're going to places like Salt Lake City to go skiing or for other reasons and it just seemed like a great opportunity. That's an example of one deal that we recommended recently and I am pretty sure score it'd 81 out of 100 in that case.
David Gardner: That's a great example Matt. I have been to Salt Lake City because it's not too far from Park City and there's some great skiing in and around that area. I guess these occasions then three immediate questions that I have for you because I think a lot of us, especially those hearing about this kind of investing for the first time, are going to wonder any one of the three following things. So Matt, how much money do I have? How much money am I probably putting toward that investment? What is my minimum investment that you would recommend for somebody who would participate in that particular mogul recommendation or any of the others? The second is, do I have to be accredited or not accredited? Explain a little bit of that. It is the United States distinction and may not make as much sense for our international listeners. But at least if they are trying to invest within the US, they probably need to be accredited in some cases. My three questions. Number 1, how much money do I need to devote to this? Number 2, do I need to be approved by some regulatory body to participate, and third, how active would I need to be? Do I need to have a portfolio. We always recommend 25 stocks at the Motley Fool. Do I need to have 25 of these different investments and do I have enough money to invest in that way?
Matt Argersinger: All great questions. I'll start with, the minimum investment is usually an easy one because it's usually dictated by the deal terms. Normally with the deals, we're recommending these private commercial real estate deals, the minimum investment is $25,000 on most crowdfunding sites. That's where you need to start. Now of course, you can invest much more on that if you like, but 25,000 is usually the start. The second question is yes, that's a key ones. Most of the deals that exist in the private real estate world still require the investor to be an accredited investor. In the US what that means is that the investor needs to have a net worth of at least one million dollars or an annual income of at least $200,000 or $300,000 annually if investing as a married couple. Those requirements might seem stringent. The nice thing is they haven't really been changed for decades and so more investors have joined that class or that distinction of investors. The other good news is that there are other platforms out there. Fundrise is an example of one. LEX is another one, the one I mentioned earlier, where they are focused on coming up with reg A offering deals which do enable non-accredited investors to invest as well. The opportunity set might still seem limited to a certain class of investors, but that is opening up every day. In the third question, yes. If you're investing 25,000 or more a pop, it can be difficult to amass a portfolio of 15, 20, 25 investments as we can do pretty easily in the stock market. What I tend to do is I say, try to have at least 5-10, and have a cross-section or diversification across both categories. Don't just have five retail investments or five office investments. Try to have maybe one retail, one office, one industrial, one hospitality, and probably not forgetting one self-storage maybe. Diversify across that and then diversify across market as well. I mentioned Salt Lake City. Well, great, you have an investments in Salt Lake City but maybe look to also have an investment in maybe California somewhere. Maybe one in Texas, maybe one in Florida, maybe one in the East Coast, to give yourself a little geographic diversification. So having five or 10 of these private investments staggered overtime in different places and across different property categories, I feel like you are pretty diversified.
David Gardner: I love how it has you poke in your head up and looking and seeing what's going on around the world. Not just in your own backdoors. Although I assume you probably feel like you've got a little bit better inside baseball knowledge, if you're looking at a property in the greater Washington DC area where you're based and where the Motley Fool headquarters is based than, let's say Salt Lake City. But that is never discouraged me from buying some stocks outside of industries that I'm focused in myself. I love learning more about the world. It feels like you're getting some specialized knowledge about what's happening in, around some of the American cities. You start cheering on this random hotel in Cincinnati, because you invested in it, because it had a good Mogul rating.
Matt Argersinger: That's absolutely right. I'm happy to say we've made, I believe five investments in the DC area. I want to say that's probably our most popular market that we've invested in because I feel like I know it best of course, but yeah, we've made 40 plus now maybe 42 private real estate investments, and they're really all over the country.
David Gardner: Another question I have to ask you then on behalf of everybody listening, how long does this baby take to pay off? What can I expect for my 25K? What might it grow into, by what date typically? I realize there's no real average here but.
Matt Argersinger: Right. I am glad you brought it up because it's a key consideration. I'd say the minimum hold period tends to be three years. Some deals can range out for five, seven, even 10 years. You have to be ready to keep money invested. It's very much like venture investing. In other words, your money is in and you really can't get that money out until the deal is either sold or maybe it's a cash-flowing deal works, paying you out distributions very much like dividends and stock, and that's pretty typical. I am very happy to say that we had a deal. This is remarkable. We had a deal that we invested in in February this year in Las Vegas, and it was a apartment building just about two miles from the strep. It had been under a little bit of duress given COVID. The occupancy was lower-than-normal, the rent collections were suffering a little bit. We took a little bit of a risky bet there on a bounce back in Vegas. The all-in cost basis for the developer who bought the community that we partnered with, was $70 million. Well, that property went under contract about a month ago for 110 million. The developer had not done anything to really improve the property as they planned and the whole period plan for that property was five years. We went into the investment thinking it was going to be a five-year hold but our investors were able to get an 80 percent return in about seven months.
Matt Argersinger: Now, that is unusual, but you can certainly get some really big and early wins sometimes with some of these deals.
David Gardner: Well, as we come to the end of the first section of our three sections of discussion this week, Matt, your final bullet for this, you sent in great preparation ahead of time, making me really lazy as your interviewer because I know where we're headed because you set me up. But your final bullet says, "The world's biggest asset class is more accessible than ever." That feels like a pretty good takeaway from this portion of our conversation. Rules are being broken, asset classes are being democratized, technology is enabling this. It's good news for all of us who are interested in the many ways that we can invest today that really were closed to us a decade or three ago.
Matt Argersinger: That's right. Real estate by most measures is about three times the size of the stock market. That's obviously huge. We're talking trillions and trillions of dollars, but it has been that asset class more than any other major asset class where I feel like it's been out of reach for the individual investor. I just think over the last 10 years, less than 10 years really, it's been broken wide open and every day I see new innovations around it. We talked about the crowdfunding aspect of it. But even earlier, you were talking about Aaron Bush, who I will love, a colleague of mine and a former co-advisor of mine at The Motley Fool. He's looking at crypto and NFTs. Well, there's this whole, now, virtual real estate, NFTs, Metaverse, [laughs] real estate world that's being built out too. That's really interesting and fascinating. I just feel like there are so many ways now for the investors to get involved. I love it because real estate has a great track record. I think it can serve a really important part of an investor's portfolio. I know you're 100 percent stocks, David, but I think there are some investors who might find some value in having, say, 15, 20 percent of their portfolio in real estate. As you pointed out, most of us do have exposure to real estate because we own our home. That's a real part of our net worth as well.
David Gardner: I want to ask you one more question about Mogul. In fact, I think some people are probably listening, going, hey, what is that service? I would like to hear a little bit more about it. Please give it a little plug in a sec. But Matt, one big picture question for you, how big is the residential real estate market versus commercial real estate, roughly ballpark? You just gave us a great sense that the stock market is maybe a third of the asset class size of real estate. I've always been curious, residential versus commercial and I guess I'll also just throw in, could you have imagined 10 years ago or so when you let your first guest into your English basement, that these crowdfunding platforms would be enabling you to do and say what you're doing here 10 years later?
Matt Argersinger: The first product question was the size of the residential market. The one confusing aspect is whether or not you include multi-family in the residential pie or in the commercial pie. If you include it in the residential pie where traditionally it has been included, it's easily I think a $9 trillion market, if my numbers in my head are correct. It is bigger than the commercial market, if you do that. If you instead include the multi-family part in commercial, which people are tending to do, they're a little more equivalent because now you're comparing the single-family housing home market essentially to the commercial market, which also now includes apartment buildings, etc. But either way, you slice it, we're talking big markets. We welcomed our first Airbnb guest into our apartment, gosh, more than 11 years ago. I never dreamed that you'd have this whole crowdfunding universal rise up to the point where it was so easy to friends and also to invest in the asset class so easily and efficiently, and even speaking to that early Airbnb experience. There are now Airbnb operators out there that you can actually invest in. Their whole business plan is essentially just to operate portfolios of Airbnb rentals in a lot of different markets. But anyway, that's going down a different rabbit hole. But if you're interested in learning more about this, if you're interested in seeing how we do things in our Mogul service, you can just go to Millionacres.com and click on the Invest button in top tab there, and that'll give you some information about Mogul, the service that I'm on.
David Gardner: Great.
Matt Argersinger: I don't know if we're accepting new investors nowadays. I should know that, but I think if you want to join Mogul, you're always, of course, welcome to join Mogul. Click on that and that will give you all the information you need about it. But in a way I think we're doing our small parts to democratize real estate for the individual investor.
David Gardner: That's wonderful. Matt, if I'm an international listener, is this a US-only thing, or could I participate?
Matt Argersinger: Well, that is a little more complicated because I think most of the deals that we recommend are only available to US investors. Now, that's going to change because there's some more regulations and I think some more language that some of the sponsors are waiting for to determine whether or not they can let international investors in. But right now, most developers only allow US investors to participate just because they're worried about some legal implications of allowing international investors in. So that is a little bit more restrictive. But again, it's one of those things where I expect very shortly within a year or two that rule is going to be broken as well.
David Gardner: Well, we are here early days. You brought us here, Matt. Thank you for that. When you were first explaining this service and the way you were thinking of it working, I was likening it to eBay. Now, we're not providing the platform of eBay, but imagine if you had an advisor looking at eBay saying, "You should go buy those collectibles over there." That has a high rating. That'll be much more likely to pay off for you than those other things on eBay. That's basically what you're doing using crowdfunding platforms. It's a really cool approach. I obviously, I'm a fan. Let's go on to section number 2 of the conversation. You've entitled it, "Three undeniable long-term trends. One major uncertainty for real estate ahead." Let's start with trend number 1.
Matt Argersinger: Sure. Well, this one is probably going to seem obvious, but not necessarily the implications. But e-commerce is a major trend, undeniable. We've been watching its growth and it's exponential reach across the country for decades now. But what happened, I guess, in the pandemic and we're still going through that is you had really about five years worth of expected e-commerce growth get pulled forward because all of a sudden, as of March 2020, a lot of us are sitting at home. We're not going to grocery stores, we're not going out to do our normal shopping. We're not even going out to restaurants. It just really expanded the business of e-commerce more than we could ever have expected in such a short period of time.
Matt Argersinger: What that's done though is created a real dire need for more industrial and warehouse space in the United States. Because we just don't have the capacity right now and you're seeing that cascade across the economy, which is, we don't have the capacity to do all the shipping, logistics, warehousing, cold storage, all the things that you need to have in place to be able to really facilitate this massive amount of e-commerce that's happening in the country. There was a stat that CBRE put out earlier this year that still blows my mind that we need 400 million more square feet of industrial warehouses just to handle returns. Just to handle people who buy things online but want to return them, we just don't have enough capacity. It's a staggering number. What you're seeing is the demand and the value of industrial real estate in the United States, particularly warehouse and logistical real estate just soar in value. Some of the numbers are just staggering, there's billions of dollars worth of deals getting done. Some of the valuations to that marketplace that we're seeing are valuations I never thought you'd see on a per square foot basis for essentially what is very drab industrial warehouse space. You never thought you'd pay a lot of money for something like that on a per square foot basis, but that has become so valuable especially when that real estate is located in close infill locations, last-mile location near big cities. If you think about places like Dallas, Texas or Tampa, Florida or Nashville, Tennessee, places where there's just a ton of growth going on, they don't have much industrial warehouse space. They need a lot more.
David Gardner: I heard that firsthand in fact this week. On Motley Fool Live, we had the CEO of one of our companies we've invested venture capital in through Motley Fool Ventures. I was mentioning Ollen Douglass earlier, his name is Cameron Johnson and his company is Nickson. Really interesting company, they operate only in Dallas, Houston, and one other Texas city, only in Texas. They do Furniture as a Service, sounds crazy until you realize it's totally logical for anybody moving into a new apartment, especially if let's say you've taken a new job at a new city and you need to start there next month and you're moving your family there, they fully outfit your apartment for you before you get there. But what has been so important to them was this idea of warehouse space where they can keep all of their furniture. As you just mentioned, that has been a dear commodity, you even happen to mention Dallas. But I think a lot of Americans accept, we have so much room still not built up in this country. We love our national parks, so we're not trying to build everything up across this country. But well, what an interesting, undeniable, I agree, you were calling this a long-term trend though, not just a one or two-year COVID thing. It reminds me, Matt, that part of the coverage, and again I'm always a full arm's length away from what's happening in the world of real estate. I really don't follow up very much, but I'm constantly hearing that we didn't build for 10 years, that it will take us 5-10 years to build ourselves out of this predicament. I'm thinking in particular of residential real estate. Is that connected in here?
Matt Argersinger: Absolutely. Not only did 10 years ago you had a down economy, but we were just not building enough real estate of all kinds really or we had too much of certain kinds of real estate like retail. If you think about shopping malls and things like that, that maybe served a really good purpose 15, 20 years ago. But that space, and we'll talk about the next trend because that's related to that, but that space is much better used now as e-commerce hubs where we can store things like furniture and move things around and be able to have trucks come in and out or even trains. That just wasn't something we were really focused on. One of the outcomes of COVID, there are many outcomes, but one of them is that we need more space like this and I think there's years to play out. There's investments that you can make behind this and we're going to talk about a couple of them in the quiz that I'm going to give you. But you can see some of the performance that some of these industrial REITs have had, it's really impressive.
David Gardner: That's awesome. Let's move on to undeniable long-term trend number 2.
Matt Argersinger: We just talked about e-commerce. But the flip side of that is what is happening to traditional retail. I just talked about what happens to shopping malls or traditional malls or strip malls, all this retail real estate that we have where people are just going to less and decide to do more of their typical household and grocery shopping online. I think there's a real trend now and you're seeing it happen nascently. But I think it's something that's really going to take off in the years ahead, which is taking this millions and billions of square feet of shopping malls and parking lots and turning them into experience-based, entertainment-based or mixed-use real estate that can do a lot of different things. There's popular examples of a mall being turned into an Esports arena, and that's happening more often than you think. But you're also seeing Amazon for example going and buying old shopping malls, either turning them into warehouse space or data centers. You're seeing big former real estate shopping malls being turned into apartment buildings, and senior living, and hospitals. I think there's just this huge transformation that's going to take place. In the United States, we just have so much retail real estate, multiple times which you'd find in a typical European country. We just don't need a lot of it right now, at least in its current form. I think a big trend in the years to come, and it's going to last a long time, which is taking all this real estate and really transforming it into things we really need more of and we'd like to use more of, which is for experiences, for entertainment, for services, things that we need, for where people to live because we also need that as well.
David Gardner: Speaking of big trends that are undeniable, that office desk that a lot of us reported to two years ago is now your home office desk. You're right. We're not getting out as much and there isn't as much need necessarily for us to get out, although some of us are a little stir-crazy. I'm just trying to get out more because I enjoy getting out and around, seeing the beautiful mixed-use spaces that are sprouting up in around Washington DC area, which has a very vital real estate market. I want to start asking about the future of work that's on so many people's minds right now. But looking ahead, spoiler alert, that's the big uncertainty ahead we're going to be talking about in a few minutes. Let's park it for now, move away from our home office desk that might be our office desk for the rest of our lives or not. We'll get back to that, Matt. Let's go to undeniable long-term trend number 3.
Matt Argersinger: Sure. Number 3 is what you have is this big migration going on. In our country, we've had several major migrations that have happened in history.
David Gardner: Go West, young man?
Matt Argersinger: Go West, young man or even go North to the Midwest and go work at Ford in the teens and twenties of the last century. But what you have today is a massive migration to the Sun Belt, away from the more traditional Northeast or Midwest markets and even away from the coast to a certain extent, and really down to a lot of those big Sun Belt cities that are just experiencing so much growth. We mentioned Dallas earlier, think of Austin, Texas as well, Phoenix, Arizona. I mentioned Nashville, Tennessee, which is on the Northern edge of the Sun Belt, but I consider it in the Sun Belt. Atlanta, Georgia is another one. Charlotte, North Carolina, Miami, Florida, Tampa. Those markets are experiencing about three times the population growth as the rest of the country, and it's really all people moving to those places. Now, they're moving for a variety of reasons. COVID partly has made worker distribution a little more distributed [laughs] and so more flexible. A lot of people are going to those areas because they're cheaper places to live and they are up and coming. There's also just lower-cost in general, and you're seeing businesses really move down and take advantage of lower taxes, lower labor costs, and really good talent, good employee talent as well. You hear every day that the Teslas of the world are moving to Austin, Texas, or big financial firms that made their homes in New York City for decades are now moving to places like Miami or Fort Lauderdale, and that's a real thing. If you look at the employment numbers and population numbers, there's a real surge in the country's population to those places.
David Gardner: That was happening well before COVID, that move to the Southwest, the Sun Belt as you're saying, was happening but it's been accelerated. COVID has accelerated a lot of trends that were already in place, but man we're running out of warehouse space. I hope we're not running out of Sun Belt, Matt. It's a classic example of something that was already happening, people moving away from, I know you're a New England Patriots fan.
Matt Argersinger: Yeah.
David Gardner: Are fans going to go to the games anymore or is it all about the Arizona Cardinals of the next year? I'm not sure. [laughs] Everybody moves away from these Eastern hubs or the West Coast. Maybe it is all about the Arizona Cardinals, I know we're talking football here. But I just think it's interesting that a lot of the things that have happened in the last two years were already in place, they're just happening faster.
Matt Argersinger: Yes. One thing I love to look at is you can look at U-Haul data. Someone rents a U-Haul truck in San Francisco, drives that down to Phoenix, Arizona, or Salt Lake City. Then U-Haul puts that data out there and you can just see the net miles that have been traveled to the Sun Belt versus going back. People are moving to these places in droves. You're exactly right, it just really picked up after COVID. Again, it's one of those things where I just see playing out over many years. What are the implications to that? Well, we need more housing, we need more industrial space, we might even need more office space or at least co-working places if people are going to move to these places and want to have places where they can meet colleagues or do share work projects, and lots of hotels. There's just lots of real estate implications to that as well. I like to say and a lot of things we do know in Millionacres, it's real estate follows people and money. The people and money are definitely heading to the Sun Belt, and so real estate is going to follow and try to keep up with that.
David Gardner: All of that Matt, takes us back to the future of work and the one major uncertainty for real estate ahead.
Matt Argersinger: Yes. The big uncertainty, and I think there's no doubt, it's the traditional office building, because I can see what's happening in the residential space. I can see what's happening in industrial, we talked about it. I can even see what's happening in the hospitality space. I think hospitality real estate is really going to bounce back probably beginning 2022 for sure. Where I can't see through the clouds, and I think many investors and economists are struggling too as well, is what happens to office because we have billions of square feet of office space around the country. Think about all of those office buildings in New York City, or Chicago, or Los Angeles or San Francisco, other big cities, where for years, decades, you'd have millions of workers getting up every morning, getting in a car or getting on some bus or train and going into a city and go into one of these mega buildings and going to work, and that was the way we did things forever. In The Motley Fool, we have offices all around the world and our headquarters is in Alexandria, Virginia, and for almost 10 years, living in DC, I got on the metro, the subway in DC and rode 20 minutes down to Alexandria to go to Motley Fool HQ. What happens to that relationship that we had as workers, employees with the office building? I think that's going to change, I think the space that we need to do work or the space that we want to be in with colleagues is going to change, and I don't know of anyone who has a great answers to how it's going to play out. I think the right answer is probably going to land somewhere in that hybrid model where we do spend a lot more time than we think outside of the office or at home. We do spend part of our week, part of our time at an office or shared workspace. But what we do in those spaces might be a lot different. It might be reserved for collaborative meetings, or team get-togethers, project oriented tasks rather than coming to a desk at work that we had that was dedicated to us and sitting for a large part of our day and doing work and then doing other things while we're at work, but I would love to know the future in that, because there's a lot of money that's going to be made [laughs] in the office market if someone can figure it out. Even if we do go to a hybrid model, that huge implications for the amount of office space that we have in the country, just like retail, it's going to have to change. It's going to have to be evolved into maybe apartments or hotels or other uses because we just probably have too much of it.
David Gardner: Well, for companies that are highly invested in this space thinking, obviously, particularly of commercial real estate, often they are leveraged. I'm not one of them, and I don't envy the position that they're in, having to make hard decisions. But since our audience is really individual investors, that's for the most part, who listens to Rule Breaker Investing and follows Millionacres every week, I think the good news is, we don't have to know the answer right now, because usually big trends, and this is one of them, play out over time. There will be innovators who come in and do crazy stuff we wouldn't have thought of, just like there are crowdfunding platforms for commercial real estate today that you and I as individual investors can invest in and no one was thinking about that 20 years ago, so I'm very confident that innovators will come in and there will be some really cool new things that show up, and you and I can figure those out a year or three from now. Matt Argersinger and every Rule Breaker listening to me right now, if they are real trends, they'll keep playing out for years after that, so you don't have to put a ton of money in here or make a big bet either way, it's not binary, it's much more likely that it will be both end in the same way. Classically, we use more paper today, even though the Internet showed up and at one point, we thought electronic would replace paper. I suspect there will be both and it'll all grow out, but we could watch it happen and invest as we go. I'm curious for your investing advice through Millionacres, Matt. Do you have any examples where you have started to see something new or taken a risk on some of these new, unproven view of the future of work?
Matt Argersinger: This is going to sound funny to a lot of your listeners I think, but what is old might be new again, and it's not even that old, but WeWork was going to come public a few years ago with a lot of [laughs] fanfare, a huge valuation, and of course we know that, that collapsed and it never came to fruition, but it did recently go public again via SPAC maybe a week or two ago. WeWork actually might have the model of the future, but they were just maybe a way ahead of their time, which is, it could be a situation where the future office really is a co-working or office sharing type of platform and maybe WeWork isn't necessarily the answer or the right company to bet on, but that could eventually be one of the models that wins the day, I guess any traditional office market and wouldn't that be kind of ironic in a way that the much derided WeWork of several years ago is actually the future, they were just kind of ahead of their time. [laughs]
David Gardner: Well, and we've seen that happen before, I think about Webvan 25 years ago or so late '90s, brilliant business model that just didn't work. It was too early for the world, but grocery delivery that didn't even sit in the giant for a while, it came straight from the farmers to a warehouse straight to you. Webvan invested a ton of money, had a talented CEO attracted from big business and caved in badly in the late 1990s, and so I wouldn't be surprised if you're right here, Matt that, that is a smart idea, that is a model, and certainly, WeWork is not the only player here. I think in every American city there's some entrepreneur who probably has his or her local brand for that kind of shared office space within that neighborhood of that city. I think, I'm not going to say it's ubiquitous, but it feels like it's a real thing out there, so I hear you on that point. Any other predictions you want to make about the future of work or real estate investing prior to us moving onto what I'm dreading, which is Section 3 of this interview?
Matt Argersinger: [laughs] No, I will just say that, I think what our conversation shows is that, even in real estate, which a lot of us think of it as a slow moving stagnant industry, the changes can be pretty monumental, especially when you go through a global pandemic, that really changes the game, and so even in real estate, we're seeing some huge changes and they're just starting to play out and they've got years to go.
David Gardner: It is as you said earlier, the world's biggest asset class, so there's just huge dollars or whatever currency you want to talk about, invested in all of this because it's the earth around us, which I hope we're treating well as well. That's a separate conversation for another day. But thank you, Matt, for that tour through three undeniable long-term trends and of course, one major uncertainty for real estate. Let's move onto section number 3. It's time for you to quiz me on 10 real estate multi-baggers. I hope I know at least one, Matt. You've been on the show before, you helped initiate the Market Cap Game Show, you were my guest star the first several. Occasionally, I would make you look bad, not by intention [laughs] but just because I'd ask you about a stock you didn't know and you'd massively misguess high or low the market cap or Etsy, but that's another thing. [laughs] Now the tables are about to turn because this is something you know really well that I don't, and it's quiz time. I'm here on behalf of all of our listeners, so I'm a proxy for people who probably know a lot more than I do about this, but if you like to see slow-motion train wrecks, [laughs] let's get ready and strap in. What do you got for me?
Matt Argersinger: I love this, it's my chance to stump you finally, and I think if anyone's [laughs] listening, if you get more than, what do we do? If we get more than David in this case, you can go to Twitter with the hashtag, [laughs] I beat David.
David Gardner: Love it. [laughs] Absolutely.
David Gardner: One week only but how could it not be? Thank you, Matt.
Matt Argersinger: I've got 10 tickers. I'm going to give you the ticker and you're going to see if you can guess the name of the real estate company. These are all companies, that have been around for at least 10 years and they've put up monster returns over the last 10 years. Here we go with ticker number 1, I think you're going to get this one. The ticker is AMT.
David Gardner: AMT. Thank you. I am going to get this one. You're leading me off with the softball, which I appreciate and I hope the softballs keep coming from the pitching machine. But that's American Tower and that's a company that's been a long time Rule Breaker. It's been a significant winner. I haven't checked it recently, but I think it's outpaced the market over 10 plus years. A company that really got rich off of dropping down cell towers all around the US and the world during the age of mobile and it's also coming to convert it Matt, into a REIT. It started out as just, I guess a real estate stock. That's how I think when we first ranked it for Rule Breakers a long time ago, but it converted into a real estate investment trust. You could talk a little bit more about that if you want, especially if you're going to be asking me about any other REITs, it'd be good to define our terms. Just explain that for some of our listeners new to real estate investing. By the way, if there are more REITs coming, that's going to be the only when I get.
Matt Argersinger: [laughs] American Tower, you got it right, it's long time Rule Breaker, Graybar performer. It's up almost 500 percent over the last 10 years. So almost a 20 percent annualized return out of American Tower. It is a real estate investment trust, and real estate investment trusts have been around since the '60s actually, but it's a way for a company that owns predominantly real estate to convert into this structure that enables them to avoid federal taxes if they pay out 90 percent of their pre-tax income out to shareholders. That's why your typical REIT is going to have a pretty high dividend yields. Interestingly, I don't know if you know this or a lot of your listeners to you, but American Tower is actually the largest REIT in the world. Just by the nature of its business, being in the cell tower business, which we know has been just huge, probably undeniable trends over the last decade plus 20 years now actually. It's also a very international REIT. It's more than 50 percent of its assets actually are outside the US. It's one of those rare US listed REITs that also has a lot of international exposure to it.
David Gardner: Well. Matt again, thank you for picking a Rule Breaker to lead off with and I didn't know just the extent of the size and success of American Tower. It is an ongoing Rule Breaker recommendation. I'm really happy that's been part of Rule Breakers for many years but it represents [inaudible 00:56:56] I don't know that well and yet it's the one I know best in this industry. What's number 2?
Matt Argersinger: Number 2 ticker is ARE?
David Gardner: I don't know this for sure. I'm going to guess. I do want to mention, I am not googling or looking at anything in terms of the quiz to come. I wanted to go in blind. The one thing I did do as I Googled, what are the 10 largest US home builders? Because I thought that would remind me of some companies like Lennar. I don't know if that's one of the ones out here. I really like preparation but no, I'm going in blind. However ARE I do think I know this because it's been a recommendation in other Motley Fool services, probably one of yours, Matt, but I think it's Alexandria Real Estate and if I have that right, that's Alexandria, Virginia where Fool HQ is based. Do I have that right?
Matt Argersinger: Well, you've got the company right. Alexandria Real Estate Equities, ARE. As far as I know, it originated from San Diego. I don't think it has any connection to Alexandria, Virginia.
David Gardner: It has no but [laughs] I always assumed, "Surely, it's got to be ARE Alexandria." [laughs]
Matt Argersinger: But no, it was found a long time ago by Joel Marcus as a real estate company designed to own life sciences and biotechnology real estate. You can imagine they started out on the West Coast. They've expanded, of course, they just actually signed a mega new deal to build Moderna's new headquarters in Cambridge, Massachusetts.
David Gardner: Loving it.
Matt Argersinger: But huge winner 350 percent return over the last 10 years, about 16 percent annual return. A great way if you're looking to get exposure to Life Sciences and Biotech, but want to do with the real estate, that's certainly one to look at.
David Gardner: Now I remember why I know this one because it's been talked about before on Motley Fool Industry Focus, one of our podcasts and sometimes mentioned on Motley Fool Live as well. Now I remember that it's that whole life sciences, bio-sciences tie-in. It's not an Alexandria, Virginia tie-in, but that's one of the cool things about this area, Matt. Is that some companies really specialized, so while you think it's just a REIT you're buying a real estate company, it's actually a play on, in this case, life sciences. I think a lot of us have a lot of hope and belief that that's a huge area of growth. Who are the companies leasing the space to all of those kinds of companies, which is often specialized laboratories? They have to be built in a certain way to spec and in some cases it's much more technical, it's harder. This may be true of some of your others to come. We got eight more to go, so we should keep moving. But it's cool how you can buy a play on blank, fill in the blank with your real estate company.
Matt Argersinger: Certainly is. Here is ticker number 3. This might be a tough one, it is EGP.
David Gardner: I'm just going to go with Eagle Properties because it looks like it might be Eagle Properties. That's all I got for you.
Matt Argersinger: [laughs] I love that guess. It's actually EastGroup Properties. I doubt anyone listening has probably heard at this company [laughs] but it is a tremendous performer. It is up about 550 percent over the last 10 years. It is really the intersection of two of the trends we talked about, which is e-commerce because they're mostly an industrial warehouse industrial REIT and they also are Sun Belt-focused. About 90 percent of their real estate is located in the Sun Belt region, and in fact, 50 percent, I think, is located across Texas and Florida, those two states alone. Really benefiting from those two trends and it's been a monster performer. But one I'm sure many listeners have not heard of EastGroup Properties, EGP.
David Gardner: Thank you for that and Matt, I certainly didn't get that one. If anybody did your beating, Dave [laughs] but I would like to add that I assume part of what you're doing as somebody who looks at this industry and recommends these kinds of investments, Matt, is that your as much studying the industry tied to it and this case e-commerce and the previous case life sciences. You probably have a leg up if you have an ability to read the financials of those kinds of companies, or if you've worked within that industry, I assume you see with the sixth sense, when you're looking at certain areas of the real estate niches, spaces you really know as a hobbyist or professional.
Matt Argersinger: It's absolutely true. I think with a company like EastGroup for example, if you understand some of the tailwinds behind their business and you look at some of the regions where they have exposure, you can look at a lot of up-and-down fundamentals of a particular REIT. But the nice thing is with a business like that, you can also take it very top-down approach, which is where do they have exposure? What kind of tenants are they serving in the regions where they're operating? You can make a pretty good guess of whether or not a REIT is going to have success based really on just that.
Matt Argersinger: You're two out of three. Not bad, David.
David Gardner: It's going to get worse. [laughs]
Matt Argersinger: We'll see. I'm doing these tickers now about a quarter.
David Gardner: Thank you.
Matt Argersinger: I'm help or not, I don't know. [laughs] But the next one is LSI.
David Gardner: There was a company called LSI Logic. I thought, but isn't that not a semiconductor company. I have no idea. [laughs] Let's go with Land Science Institute.
Matt Argersinger: I love when you try to guess the company name. This is Life Storage, which is a self-storage company. One of the leading self-storage reits in the market. If there is one real estate class [laughs] that you would've wanted to invest in forever actually, it is self-storage, because for whatever reason, Americans love our stuff. What's fascinating about self-storage, just some context Life Storage, it's up almost 600 percent over just the last ten years. It's been a monster performer. The whole self-storage industry doesn't really exist outside of the United States. It's bizarre. As an investable class you just can't find it anywhere else.
David Gardner: Isn't that interesting?
Matt Argersinger: A love of stuff in the United States that this whole industry has really just propped up. Today we have more self-storage facilities than ever and they see me popping up. My wife and I, we actually invested in the new self-storage development out in Denver, Colorado, which is just the city itself.
David Gardner: Influx of stuff.
Matt Argersinger: People and stuff, we're moving to Denver, [laughs]. We thought that was a good investment, in our opinion and one of the best operated self-storage reits out there and the performance definitely shines through.
David Gardner: Cool. Undeniable long-term trend.
Matt Argersinger: That's right. Ticker number 5. MAA.
David Gardner: Like the others, I have no idea. Unlike the others, I'm not going to make a lame guess on this one.
Matt Argersinger: I thought you might do like Middle American Airlines [laughs]. The company is Mid-America Apartment Communities. I know, boring. This is again, intersection of two really good trends, which is just Sun Belt migration. This is OK, I'd say 80-90 percent they're mostly garden-style apartment buildings located in the South and Southwest. They are actually largest apartment owner operator in the country. It's a very large reit and it's up about 40 percent over the last 10 years. It's been nice performer.
David Gardner: Matt, when you are giving the returns, this is inclusive of dividends. Is this all-in? Is that what you're doing? Yes.
Matt Argersinger: Yes. Correct. Inclusive of dividends. Total return. So far two out of five. [laughs] Let's see here. I got it. Here is a softball. Softball is now coming your way.
David Gardner: Great.
Matt Argersinger: I think you'll love this one. The ticker is MTN.
David Gardner: Yes I do love this company. It's Vail Mountain Resorts.
Matt Argersinger: You got it.
David Gardner: This is a company that has been a long time Stock Advisor recommendation. I made it years ago just thinking, nobody's inventing any new mountains anytime soon that's going to have new ski slopes. There is the opportunity to develop some slopes that were nascent, but more than anything, Matt for Vail Mountain Resorts, which is rolled up its industry in some ways. It's been very acquisitive of some of the great properties for skiers in the world today. There's that great trend of summer time when in the past, people would just leave, let's say Vail and go summer somewhere else and come back to ski, but enough other people start going. Vail's beautiful.
Matt Argersinger: Yeah.
David Gardner: In the summer. Colorado summers are gorgeous, and so these have become warm weather destinations as well as we have shifted our thinking around the value of these outdoor properties. I definitely know this one. I know it's a market beater and a company that I've really enjoyed following.
Matt Argersinger: Yeah. Stock Advisor members are thrilled that you made this recommendation because it is up over 900 percent over the last 10 years. It's a ten-bagger. Actually the best performing of the 10 that I'm bringing today, and you're absolutely right. It's been just a great story about increasing and enhancing the time spent at Vail Resorts around the country. I remember as a kid in new England, I went to Stow Mountain a couple of times, had some really great skiing experience there. Then of course, a few years ago, Vail Resorts decided to buy Stow. Maybe a big move out to the East Coast and bought up a number of resorts out there. Pretty much the best in the business, Vail Resorts and you're right, there's just not making more mountains.
David Gardner: Thank you, Matt. I really appreciate that you brought me even three out of six. That's way better than I thought I would be at this point and I'm not going to declare that I've gotten my last one right, but I might have gotten my last one right.
Matt Argersinger: Well, we'll see. Your Google of homebuilders may have helped you with the next one..
David Gardner: Well. I haven't memorized them all, but there's Pulte. What do you got?
Matt Argersinger: All right. Ticker is NVR. A little bit of a trick one. I'm tricky on this one.
David Gardner: Okay.
Matt Argersinger: This one is unfair.
David Gardner: Nuveen Realty. It's a fund. It's not even a real estate stuff. I'm making this up.
Matt Argersinger: I believe Nuveen has some real estate funds, so you're not far off. The actual company name is NVR. They used to be known as NVHomes, they bought Ryan Homes a while later, and then change it's name into NVR. I think the NVHomes stands stood for Northern Virginia Homes back in the day because it was a company that was founded in Washington DC. They built most of their early properties in Alexandra, Arlington, Fairfax, which of course we know all those counties around Washington DC and here in Northern Virginia. So NVR, it has been an amazing performer over the last 10 years. It's up almost 700 percent. About a 23 percent annual return. What's really fascinating about NVR is that they don't pay dividend. They don't hold conference calls. All you get it every quarter is a really brief, like one page-and-a-half press release with their latest financials and then of course the other 10 Q, but they're just by the book company. There's not a lot of flash. I love it. They're a Rule Breaker in their way because they pioneered the whole idea of not owning the land where they build their homes. Traditionally homebuilders will buy a plot of land, hold that land, and then at the right time, start selling plots and building homes on the land. NVR instead buys options. Essentially leases on land that they can get out of at low cost. They speculate and say, OK, we think we're going to build 80 homes here. But if we don't, we're going to pay the land owner a breakup fee and that's kept their capital costs really low over the years and let them be very efficient with our capital. Other homebuilders, of course have followed that model now, but they're the early companies to do that. Pretty interesting.
David Gardner: That's great, Matt. Another winner here, it occurs to me to mention that I'm assuming your list of 10 who's who among the winners. Obviously not every one of these companies in this industry is a winner, but of course, we're focused since we provide advice to our members on what does win and whether or not you and I have recommended any or all of these, it does, I think, really pay us off to focus on what's working out there and study success. I appreciate that. I don't know if you're going to present anymore losers, your 8, 9, and 10, but I hope neither you nor I pick them. [laughs]
Matt Argersinger: The next ticker, Ticker number 8 is RHP.
David Gardner: RH is one of my favorite stock picks from Motley Fool Stock budget. That's restoration hardware which is its own amazing story. It's definitely just RH though. I don't know, but I'm going to go with residential home properties.
Matt Argersinger: Not bad, it's actually Ryman Hospitality Properties. [laughs] Among a lot of real estate, this company is mostly focused on resort style properties, and they are the only Gaylord National Resorts brand. Including the one that's nearby National Harbor, the Gaylord National Resort there.
David Gardner: On the Potomac River, that's right.
Matt Argersinger: They own a bunch of entertainment venues as well, including the Grand Ole Opry in Nashville, the famous Western music concert venue. It's really a hospitality entertainment company, and they've been very successful. Had a tough 2020, as you can imagine with COVID as a lot of hotels and resorts did, but really bouncing back nicely here in 2021, and a really long-term winter. Last 10 years, up 660 percent over that time.
David Gardner: Wow, despite a tough 2020, that's remarkable and I will say this is one of those where I do recognize the company. I've certainly been to the Grand Ole Opry, our son went to school, Vanderbilt, which is right in Nashville. It allowed me to get to know one of America's fastest growing best cities today. The Ryman name I see in different places. National Harbor, as you mentioned, right on the Potomac River in Washington DC. Sometimes you know the company, you just don't know the ticker symbol. In this case, I have to admit I didn't know either particularly well, but thank you for connecting us in with what sounds like a family name and not a big brand, but as soon as you start saying, well, all of the Gaylord resorts, etc. We we all start to go, "Oh, that's the company."
Matt Argersinger: That's right. The great thing is about real estate, is anytime you're at a concert, or a stadium arena or at a beautiful resort, there's a real estate company behind that, sometimes you can invest in. Two more to go, David, see if you can get one more in the next two. They might be tough though. This one we've talked a lot about, and it's one I probably mentioned before on various podcasts. But the ticker is STAG.
David Gardner: Unfortunately, I'm not going to get this one. It's one of those ticker symbols that looks like something you could parse. It looks like stage to me, so I started thinking, is this a real estate play on all of those Live Nation venues. Some of which Live Nation, by the way, owns but I'm assuming that's not at all what this company is about. I don't know STAG.
Matt Argersinger: Well, the company name is STAG Industrial. You can almost get it by the ticker, but STAG Industrial. Another one of those industrial companies that focuses on your warehousing and logistics. Unlike EastGroup, which we talked about earlier, this company, STAG, is all around the country, but they focus on your secondary markets. They have big presences in places like Cincinnati, Charlotte, what's the other one? Philadelphia. Outside major cities, but in those smaller secondary cities. They made a nice business for themselves. Really focused on acquisitions. They are about 95 percent of their real estate, they add to the portfolio comes through acquisitions. Unlike EastGroup, which does a lot more development. But they've done a really great job of allocating capital and the stock. The total return for the stock is 630 percent over the last 10 years, so a nice winner.
David Gardner: That's wonderful, Matt, and I so appreciate you bringing a mix of different companies. I know many of these are US-based companies. You did mention American Tower upfront has so many global assets. But even though we're probably rightly concentrating in the US for this list of stocks, there are a lot of these same business models and companies in wonderful places all around the world, and not always that easy to invest in many cases, maybe private companies that we can't touch. But I still appreciate. I really initially thought this is just a quiz that makes me look silly and indeed that's exactly what it is. [laughs] But more to the point, you're providing some really cool ideas for people who are interested in looking further at investments within this space. As we get to number 10 here, it occurs to me, a lot of these will probably be working 10 years from now. So while it's natural to look back over the last 10 years and see how they've all done, this is a steady Eddie business that's going to keep growing and there are lots of innovations and opportunities coming within real estate writ large. Matt, I feel like you're giving us a window into the future with many of these ideas. What's number 10, so I can close out with only three right?
Matt Argersinger: [laughs] I left this unfair one to the last.
David Gardner: Perfect.
Matt Argersinger: You probably won't get this one, [laughs] but it's one we just recently recommended in our real estate winners service. So it's our newest recommendation there, but the ticker is SUI.
David Gardner: There's that phrase, sucks to be me, which is how I feel right now. [laughs] It's suck to UI. I don't know SUI. It's a Swiss REIT.
Matt Argersinger: That's right. It's the Swiss acronym, wherever you're watching the Olympics, you see SUI, the red, when you're thinking Switzerland, but no. The ticker gives no clue as to the name, but it's Sun Communities. They are the largest owner of RV parks and mobile home parks in the country and they also have a big marina business, boat slips and such. But really a fantastic winner, up 700 percent over the last 10 years. When you think about affordable housing in the United States, which seems to be less and less of it, this company has seen a lot of demand because they offer something that is pretty affordable, more affordable to more people, which is cheaper homes on where you don't necessarily have to buy the land. You can own your home, but you lease the land or the platform underneath your mobile home or RV to Sun for a modest rental fee per month. It's a very affordable place for a lot of people live. But great management team. You have the son of the founder who still runs the business. He's been running it for, gosh, almost 30 years at this point and a fantastic winner for investors.
David Gardner: Well, that's a cool one to mention. It reminds me of my bad stock pick for Rule Breakers four years ago. In fact, it was November, so four years ago this month, Camping World, which has really been up and down, but as a seller of RVs and certainly a brand name, a lot of people would recognize, I had higher hopes for these last four years. I will mention that I recommended the stock at $35.61 four years ago this month today it's 38 or so, it's up about seven percent. The problem is the market over the last few years is up 91 percent. it's been a huge underperformer. Matt, this is a great one to close on because you're showing, well, I might have had some good idea that RVs would be growing and I couldn't have known about COVID back in 2017, but we still could have made money here. Sometimes it's the land, not the hardware or even sometimes software sitting on top of the land, but the land itself can have a lot of value.
Matt Argersinger: That's right. A lot of ways to make money in this world. If you have an idea and sometimes real estate, is the way to go.
David Gardner: Well, Matt, you took us from the democratization of this asset class for all of us as individual investors, you took us through undeniable long-term trends and a big question, and you just took us through 10 real estate multi-baggers, including some new ideas for our listeners. That was very generous. I so enjoyed spending this time with you. Do you have any concluding thoughts?
Matt Argersinger: Yes, David. I thank you so much for having me, by the way, three out of 10. That's not bad. I threw you some heat.
David Gardner: I appreciate that. Four or better, the hashtag is I beat David. This week only on Twitter. We're going to shutdown that hashtag after a week. [laughs] But no, I outperform my own expectations. You left me feeling good even though I only got three.
Matt Argersinger: Three hundred hitter in baseball, that's hall of fame.
David Gardner: True that.
Matt Argersinger: I appreciate you bringing me on, I think real estate might be a curious topic for a Rule Breaker Investing podcast. But I think as we talked about, whether it's investors being able to access the asset class like never before or some of the big trends that are really changing the game. I think there's a lot of actual Rule Breaker themes within the real estate space, and I'm excited to see if investors have opportunities there. I know they do.
David Gardner: Thank you, Matt. You sure do and you're living proof with your outstanding returns to the launch of Millionacres a few years ago, which we're just delighted by at the Motley Fool. I do want to say that, rules are being broken all the time and if you even just think about how we've all shifted culturally from office space to home office space or from malls to e-commerce, those were conventional wisdoms, those were big structures, those were Goliaths, those were assumptions that we all had in place over the last few decades that have all been subverted or changed. Rules are always being broken and having an eye toward where the real money is in this, the world's biggest asset class. Well, you've given us a window into that this week, Matt, so thank you so much and I do want to encourage as we close here, anybody who has a question? Did Matt stir your curiosity? Do you have questions about crowdfunding platforms or how to get started or any aspect of this? Well, here's the good news at the end of every month for this podcast, of course, we do a mailbag. Our email address is rbi@fool.com and I've already had Matt pre graciously accept my invitation to join me at the end of this month for this month's mailbag. So we would love your best questions or thoughts, your life in real estate or the prospects for this asset class going forward. Any insights, stories, poems, we accept all of it. Rbi@fool.com. Matt, I'm going to say, Matt, see around Thanksgiving. Happy Thanksgiving.
Matt Argersinger: Thank you, David. Happy Thanksgiving to you.
John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. David Gardner owns shares of Amazon, Moderna Inc., and Tesla. Matthew Argersinger owns shares of Airbnb, Inc., Alexandria Real Estate Equities, American Tower, Camping World Holdings, EastGroup Properties, Etsy, Life Storage Inc, Live Nation Entertainment, Mid-America Apartment, NVR, Ryman Hospitality Properties, Stag Industrial, Sun Communities, Tesla, Twitter, and Vail Resorts. The Motley Fool owns shares of and recommends Airbnb, Inc., Amazon, American Tower, Bitcoin, EastGroup Properties, Etsy, Mid-America Apartment, Stag Industrial, Tesla, Twitter, and Vanguard REIT ETF. The Motley Fool recommends Alexandria Real Estate Equities, Amerco, Camping World Holdings, Life Storage Inc, Live Nation Entertainment, Moderna Inc., NVR, Ryman Hospitality Properties, Sun Communities, and Vail Resorts and recommends the following options: long January 2022 $1,920 calls on Amazon and short January 2022 $1,940 calls on Amazon. 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.
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The idea that you're going to able to rent a hotel space or a conference room at this really beautiful, iconic building right in downtown Salt Lake City in a few years, once the redevelopment is done sounds really appealing and looked really compelling to me and there was risks involved. But since our audience is really individual investors, that's for the most part, who listens to Rule Breaker Investing and follows Millionacres every week, I think the good news is, we don't have to know the answer right now, because usually big trends, and this is one of them, play out over time. The Motley Fool owns shares of and recommends Airbnb, Inc., Amazon, American Tower, Bitcoin, EastGroup Properties, Etsy, Mid-America Apartment, Stag Industrial, Tesla, Twitter, and Vanguard REIT ETF.
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Matthew Argersinger owns shares of Airbnb, Inc., Alexandria Real Estate Equities, American Tower, Camping World Holdings, EastGroup Properties, Etsy, Life Storage Inc, Live Nation Entertainment, Mid-America Apartment, NVR, Ryman Hospitality Properties, Stag Industrial, Sun Communities, Tesla, Twitter, and Vail Resorts. The Motley Fool owns shares of and recommends Airbnb, Inc., Amazon, American Tower, Bitcoin, EastGroup Properties, Etsy, Mid-America Apartment, Stag Industrial, Tesla, Twitter, and Vanguard REIT ETF. The Motley Fool recommends Alexandria Real Estate Equities, Amerco, Camping World Holdings, Life Storage Inc, Live Nation Entertainment, Moderna Inc., NVR, Ryman Hospitality Properties, Sun Communities, and Vail Resorts and recommends the following options: long January 2022 $1,920 calls on Amazon and short January 2022 $1,940 calls on Amazon.
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I'm happy to say that a couple of the services I work on at The Motley Fool, one of them being Real Estate Winners, and one of them being Mogul, where we also recommend real estate stocks and real estate investment trust, our average recommendation this year is up 33 percent. Matt Argersinger: [laughs] No, I will just say that, I think what our conversation shows is that, even in real estate, which a lot of us think of it as a slow moving stagnant industry, the changes can be pretty monumental, especially when you go through a global pandemic, that really changes the game, and so even in real estate, we're seeing some huge changes and they're just starting to play out and they've got years to go. It is a real estate investment trust, and real estate investment trusts have been around since the '60s actually, but it's a way for a company that owns predominantly real estate to convert into this structure that enables them to avoid federal taxes if they pay out 90 percent of their pre-tax income out to shareholders.
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I'm happy to say that a couple of the services I work on at The Motley Fool, one of them being Real Estate Winners, and one of them being Mogul, where we also recommend real estate stocks and real estate investment trust, our average recommendation this year is up 33 percent. What was your first real estate investment, maybe was it a stock or maybe it was a property? David Gardner: Thank you for that and Matt, I certainly didn't get that one.
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4038.0
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2021-11-11 00:00:00 UTC
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Russia's Alrosa posts profit jump on recovering diamond demand
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AAL
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https://www.nasdaq.com/articles/russias-alrosa-posts-profit-jump-on-recovering-diamond-demand
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Adds detail, executive comment, context
MOSCOW, Nov 11 (Reuters) - State-controlled Russian diamond producer Alrosa ALRS.MM on Thursday said recovering sales helped it to more than triple third-quarter net profit to 25 billion roubles ($354 million).
The world's largest producer of rough diamonds, which competes with Anglo American AAL.L unit De Beers, is gradually restoring output after last year's 22% reduction to 30 million carats when global diamond sales were hit by the COVID-19 pandemic.
Demand for diamond jewellery grew in double-digit percentages in the third quarter, said finance chief Alexey Philippovskiy, adding that global diamond output would remain 20–25% below the pre-pandemic levels in the coming years.
Alrosa's third-quarter sales rose by 83% year on year to 9.2 million carats of diamonds.
The company also said it raised its 2021 production estimate by 1 million carats to 32.5 million carats and kept its capital expenditure forecast unchanged at 21 billion roubles.
($1 = 70.5625 roubles)
(Reporting by Polina Devitt Editing by Susan Fenton and David Goodman)
((Polina.Devitt@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.
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The world's largest producer of rough diamonds, which competes with Anglo American AAL.L unit De Beers, is gradually restoring output after last year's 22% reduction to 30 million carats when global diamond sales were hit by the COVID-19 pandemic. Adds detail, executive comment, context MOSCOW, Nov 11 (Reuters) - State-controlled Russian diamond producer Alrosa ALRS.MM on Thursday said recovering sales helped it to more than triple third-quarter net profit to 25 billion roubles ($354 million). Demand for diamond jewellery grew in double-digit percentages in the third quarter, said finance chief Alexey Philippovskiy, adding that global diamond output would remain 20–25% below the pre-pandemic levels in the coming years.
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The world's largest producer of rough diamonds, which competes with Anglo American AAL.L unit De Beers, is gradually restoring output after last year's 22% reduction to 30 million carats when global diamond sales were hit by the COVID-19 pandemic. Alrosa's third-quarter sales rose by 83% year on year to 9.2 million carats of diamonds. The company also said it raised its 2021 production estimate by 1 million carats to 32.5 million carats and kept its capital expenditure forecast unchanged at 21 billion roubles.
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The world's largest producer of rough diamonds, which competes with Anglo American AAL.L unit De Beers, is gradually restoring output after last year's 22% reduction to 30 million carats when global diamond sales were hit by the COVID-19 pandemic. Adds detail, executive comment, context MOSCOW, Nov 11 (Reuters) - State-controlled Russian diamond producer Alrosa ALRS.MM on Thursday said recovering sales helped it to more than triple third-quarter net profit to 25 billion roubles ($354 million). Alrosa's third-quarter sales rose by 83% year on year to 9.2 million carats of diamonds.
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The world's largest producer of rough diamonds, which competes with Anglo American AAL.L unit De Beers, is gradually restoring output after last year's 22% reduction to 30 million carats when global diamond sales were hit by the COVID-19 pandemic. Adds detail, executive comment, context MOSCOW, Nov 11 (Reuters) - State-controlled Russian diamond producer Alrosa ALRS.MM on Thursday said recovering sales helped it to more than triple third-quarter net profit to 25 billion roubles ($354 million). Demand for diamond jewellery grew in double-digit percentages in the third quarter, said finance chief Alexey Philippovskiy, adding that global diamond output would remain 20–25% below the pre-pandemic levels in the coming years.
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4039.0
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2021-11-10 00:00:00 UTC
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American Airlines pilots decline holiday pay proposal - memo
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AAL
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https://www.nasdaq.com/articles/american-airlines-pilots-decline-holiday-pay-proposal-memo
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By Abhijith Ganapavaram
Nov 10 (Reuters) - American Airlines AAL.O pilots have declined an offer of bonuses and higher pay by the carrier for working during the holidays, according to a company internal memo seen by Reuters on Wednesday.
The airline had on Tuesday offered bonuses and higher pay of up to 300% to employees.
In a memo to pilots, American Airlines said it was disappointed with the Allied Pilots Association's decision and would continue to work with them.
The union could not be immediately reached for comment.
(Reporting by Abhijith Ganapavaram in Bengaluru; Editing by Arun Koyyur)
((Abhijith.G@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.
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By Abhijith Ganapavaram Nov 10 (Reuters) - American Airlines AAL.O pilots have declined an offer of bonuses and higher pay by the carrier for working during the holidays, according to a company internal memo seen by Reuters on Wednesday. The airline had on Tuesday offered bonuses and higher pay of up to 300% to employees. (Reporting by Abhijith Ganapavaram in Bengaluru; Editing by Arun Koyyur) ((Abhijith.G@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.
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By Abhijith Ganapavaram Nov 10 (Reuters) - American Airlines AAL.O pilots have declined an offer of bonuses and higher pay by the carrier for working during the holidays, according to a company internal memo seen by Reuters on Wednesday. The airline had on Tuesday offered bonuses and higher pay of up to 300% to employees. In a memo to pilots, American Airlines said it was disappointed with the Allied Pilots Association's decision and would continue to work with them.
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By Abhijith Ganapavaram Nov 10 (Reuters) - American Airlines AAL.O pilots have declined an offer of bonuses and higher pay by the carrier for working during the holidays, according to a company internal memo seen by Reuters on Wednesday. The union could not be immediately reached for comment. (Reporting by Abhijith Ganapavaram in Bengaluru; Editing by Arun Koyyur) ((Abhijith.G@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.
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By Abhijith Ganapavaram Nov 10 (Reuters) - American Airlines AAL.O pilots have declined an offer of bonuses and higher pay by the carrier for working during the holidays, according to a company internal memo seen by Reuters on Wednesday. The union could not be immediately reached for comment. (Reporting by Abhijith Ganapavaram in Bengaluru; Editing by Arun Koyyur) ((Abhijith.G@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.
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4040.0
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2021-11-10 00:00:00 UTC
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American Airlines pilot union declines holiday pay proposal - memo
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AAL
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https://www.nasdaq.com/articles/american-airlines-pilot-union-declines-holiday-pay-proposal-memo
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nan
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Nov 10 (Reuters) - American Airlines AAL.O pilot union has declined the U.S. airline's offer of bonuses and higher pay for working during the holidays, according to a company internal memo seen by Reuters.
The Allied Pilots Association could not be immediately reached for comment.
(Reporting by Abhijith Ganapavaram in Bengaluru; Editing by Arun Koyyur)
((Abhijith.G@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.
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Nov 10 (Reuters) - American Airlines AAL.O pilot union has declined the U.S. airline's offer of bonuses and higher pay for working during the holidays, according to a company internal memo seen by Reuters. The Allied Pilots Association could not be immediately reached for comment. (Reporting by Abhijith Ganapavaram in Bengaluru; Editing by Arun Koyyur) ((Abhijith.G@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.
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Nov 10 (Reuters) - American Airlines AAL.O pilot union has declined the U.S. airline's offer of bonuses and higher pay for working during the holidays, according to a company internal memo seen by Reuters. The Allied Pilots Association could not be immediately reached for comment. (Reporting by Abhijith Ganapavaram in Bengaluru; Editing by Arun Koyyur) ((Abhijith.G@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.
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Nov 10 (Reuters) - American Airlines AAL.O pilot union has declined the U.S. airline's offer of bonuses and higher pay for working during the holidays, according to a company internal memo seen by Reuters. The Allied Pilots Association could not be immediately reached for comment. (Reporting by Abhijith Ganapavaram in Bengaluru; Editing by Arun Koyyur) ((Abhijith.G@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.
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Nov 10 (Reuters) - American Airlines AAL.O pilot union has declined the U.S. airline's offer of bonuses and higher pay for working during the holidays, according to a company internal memo seen by Reuters. The Allied Pilots Association could not be immediately reached for comment. (Reporting by Abhijith Ganapavaram in Bengaluru; Editing by Arun Koyyur) ((Abhijith.G@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.
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4041.0
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2021-11-09 00:00:00 UTC
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American Airlines offers bonuses, higher pay for peak holiday hours
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AAL
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https://www.nasdaq.com/articles/american-airlines-offers-bonuses-higher-pay-for-peak-holiday-hours
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Nov 9 (Reuters) - American Airlines AAL.O is offering bonuses and higher pay of up to 300% to employees working during the holidays, as the U.S. carrier fortifies staffing ahead of the busiest time of the year.
Eligible employees who work from Nov. 23 through Nov. 29 and Dec. 22 through Jan. 2 will be paid a 150% premium for hours that fall within the peak holiday periods, American said in a memo to flight attendants on Friday. Certain employees without absences between Nov. 15 and Jan. 2 will get a 300% premium.
The news comes a day after the United States lifted travel restrictions slapped on much of the world since the pandemic began, with months of pent-up demand triggering a major spike in bookings.
Travel bookings for the holiday season in the United States also continue to rise rapidly, according to airlines and industry data, as COVID-19 cases ease and vaccination rates accelerate.
American Airlines expects 4,000 new employees to join in the fourth quarter, COO David Seymour said in a separate memo to all members on Friday.
"On the staffing front, we are welcoming back many team members and aggressively onboarding many new hires as well," Seymour said.
Nearly 1,800 flight attendants have returned from leave in November and 800 more are expected to return in December, according to the memo.
The company also said it was offering a $1,000 bonus to eligible members with perfect attendance between Nov. 15 and Jan. 2. The bonus applies to teams including flight crew training instructors and flight simulator engineers as well as fleet service members.
Members who work on any of the peak days will also be eligible to receive 1-1/2 times their pay for each day.
(Reporting by Sanjana Shivdas in Bengaluru; Editing by Devika Syamnath)
((SanjanaSitara.Shivdas@thomsonreuters.com; within U.S. +1 646 223 8780, outside U.S. +91 80 6749 1642; Twitter: @SanjanaShivdas;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Nov 9 (Reuters) - American Airlines AAL.O is offering bonuses and higher pay of up to 300% to employees working during the holidays, as the U.S. carrier fortifies staffing ahead of the busiest time of the year. The news comes a day after the United States lifted travel restrictions slapped on much of the world since the pandemic began, with months of pent-up demand triggering a major spike in bookings. Travel bookings for the holiday season in the United States also continue to rise rapidly, according to airlines and industry data, as COVID-19 cases ease and vaccination rates accelerate.
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Nov 9 (Reuters) - American Airlines AAL.O is offering bonuses and higher pay of up to 300% to employees working during the holidays, as the U.S. carrier fortifies staffing ahead of the busiest time of the year. Eligible employees who work from Nov. 23 through Nov. 29 and Dec. 22 through Jan. 2 will be paid a 150% premium for hours that fall within the peak holiday periods, American said in a memo to flight attendants on Friday. American Airlines expects 4,000 new employees to join in the fourth quarter, COO David Seymour said in a separate memo to all members on Friday.
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Nov 9 (Reuters) - American Airlines AAL.O is offering bonuses and higher pay of up to 300% to employees working during the holidays, as the U.S. carrier fortifies staffing ahead of the busiest time of the year. Eligible employees who work from Nov. 23 through Nov. 29 and Dec. 22 through Jan. 2 will be paid a 150% premium for hours that fall within the peak holiday periods, American said in a memo to flight attendants on Friday. American Airlines expects 4,000 new employees to join in the fourth quarter, COO David Seymour said in a separate memo to all members on Friday.
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Nov 9 (Reuters) - American Airlines AAL.O is offering bonuses and higher pay of up to 300% to employees working during the holidays, as the U.S. carrier fortifies staffing ahead of the busiest time of the year. Eligible employees who work from Nov. 23 through Nov. 29 and Dec. 22 through Jan. 2 will be paid a 150% premium for hours that fall within the peak holiday periods, American said in a memo to flight attendants on Friday. The news comes a day after the United States lifted travel restrictions slapped on much of the world since the pandemic began, with months of pent-up demand triggering a major spike in bookings.
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4042.0
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2021-11-08 00:00:00 UTC
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American Airlines Fails In Attempt To Stop Flight Attendant's Sexual Assault Claim : Law Firm
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AAL
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https://www.nasdaq.com/articles/american-airlines-fails-in-attempt-to-stop-flight-attendants-sexual-assault-claim-%3A-law
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(RTTNews) - Dallas-based law firm Miller Bryant LLP said Monday that an American Airlines flight attendant, who says she was sexually assaulted by a celebrity chef hired by the airline, will get the chance to tell her story to a jury, following a ruling by a Tarrant County district court judge.
The ruling, by Judge Kimberly Fitzpatrick, rejected all portions of a motion for summary judgment filed by American that sought to avoid allowing a jury to hear the case. The case is set for trial in Judicial District Court on January 24.
The plaintiff in the case, Kimberly Goesling of Fort Worth, first publicly told the story of what happened to her - and American's role in it - in a 2021 Facebook and Instagram.
Goesling, a nearly 30-year flight attendant for the airline, was a flight crew leader and worked on the airline's recruitment and training teams.
During a special assignment in January 2018, Goesling went with other American Airlines employees to Germany to help develop a special international menu for first- and business-class passengers.
Also on the work trip was a celebrity chef whom American hired without a background check and continued to employ even after it learned of prior allegations against him for alcohol abuse and inappropriate sexual conduct, according to the lawsuit.
On the final night of the group's stay, the chef forced his way into Goesling's hotel room and sexually assaulted her. American's own investigation later showed he admitted to the attack.
When she reported the attack to the company, managers promised to pay Goesling for treatment and allow her time away from work shifts, as needed. They did neither, instead removing her from her coveted position on the airline's recruitment team, the lawfirm Miller Bryant said.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The ruling, by Judge Kimberly Fitzpatrick, rejected all portions of a motion for summary judgment filed by American that sought to avoid allowing a jury to hear the case. The plaintiff in the case, Kimberly Goesling of Fort Worth, first publicly told the story of what happened to her - and American's role in it - in a 2021 Facebook and Instagram. Also on the work trip was a celebrity chef whom American hired without a background check and continued to employ even after it learned of prior allegations against him for alcohol abuse and inappropriate sexual conduct, according to the lawsuit.
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(RTTNews) - Dallas-based law firm Miller Bryant LLP said Monday that an American Airlines flight attendant, who says she was sexually assaulted by a celebrity chef hired by the airline, will get the chance to tell her story to a jury, following a ruling by a Tarrant County district court judge. Goesling, a nearly 30-year flight attendant for the airline, was a flight crew leader and worked on the airline's recruitment and training teams. They did neither, instead removing her from her coveted position on the airline's recruitment team, the lawfirm Miller Bryant said.
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(RTTNews) - Dallas-based law firm Miller Bryant LLP said Monday that an American Airlines flight attendant, who says she was sexually assaulted by a celebrity chef hired by the airline, will get the chance to tell her story to a jury, following a ruling by a Tarrant County district court judge. Goesling, a nearly 30-year flight attendant for the airline, was a flight crew leader and worked on the airline's recruitment and training teams. During a special assignment in January 2018, Goesling went with other American Airlines employees to Germany to help develop a special international menu for first- and business-class passengers.
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(RTTNews) - Dallas-based law firm Miller Bryant LLP said Monday that an American Airlines flight attendant, who says she was sexually assaulted by a celebrity chef hired by the airline, will get the chance to tell her story to a jury, following a ruling by a Tarrant County district court judge. The plaintiff in the case, Kimberly Goesling of Fort Worth, first publicly told the story of what happened to her - and American's role in it - in a 2021 Facebook and Instagram. During a special assignment in January 2018, Goesling went with other American Airlines employees to Germany to help develop a special international menu for first- and business-class passengers.
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4043.0
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2021-11-08 00:00:00 UTC
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Why Is Everyone Talking About Affirm Holdings Stock?
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AAL
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https://www.nasdaq.com/articles/why-is-everyone-talking-about-affirm-holdings-stock
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nan
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nan
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Affirm Holdings (NASDAQ: AFRM), a provider of buy now, pay later (BNPL) services, became a hot stock in late August after it partnered with Amazon (NASDAQ: AMZN) to process some of the e-commerce giant's payments.
Affirm recently became a hot topic again following two major developments. First, Affirm's stock rose in late October after it struck a deal with American Airlines (NASDAQ: AAL) to offer BNPL options for its ticket sales. But in early November, Affirm's stock dipped after Peloton Interactive (NASDAQ: PTON), its largest client, posted dismal guidance for the rest of its fiscal year.
Let's see if the good news outweighs the bad news, and if Affirm's stock is still worth buying after it more than tripled from its IPO price back in January.
Image source: Getty Images.
Affirm expands into the air travel market
Affirm's new partnership with American Airlines will allow customers to split the cost of flights that exceed $50 into monthly payments.
The option will be initially offered to "select" customers in the U.S. before being rolled out nationwide over the "coming weeks." As with its other partnerships, Affirm says it won't charge any hidden or late fees, and that any interest-bearing payments will be calculated by a fixed dollar amount (rather than a compounding percentage) which never increases.
Affirm says that 74% of Americans it recently surveyed said they would spend "more on travel this holiday season than ever before," but that 60% were concerned that they couldn't "afford to travel as they would like to."
That disparity, along with a growing aversion toward the fees and compounding interest rates on traditional credit card payments, might make Affirm a popular checkout option for holiday travelers.
However, Affirm didn't reveal if American Airlines would charge interest-bearing or interest-free payments. But the partnership could be similar to Affirm's deal with Amazon, in which it charges some customers interest and provides others interest-free payments based on their credit scores.
Affirm's deal with American Airlines could boost its merchant network revenue, which rose 48% in fiscal 2021 (which ended in June) and accounted for 44% of its top line. But the impact on its interest income, which grew 75% and accounted for 37% of its top line, is still too difficult to quantify.
But Peloton's pain could offset those gains
In fiscal 2021, Affirm generated 20% of its revenue from Peloton, the connected exercise bike maker that experienced a major growth spurt during the pandemic. That's down from 28% of its revenue in fiscal 2020.
Image source: Peloton.
Peloton's revenue doubled in fiscal 2020, then surged another 120% to $4.02 billion in 2021. But red flags appeared over the past year. It recalled its Tread+ treadmill in May due to safety issues, then significantly reduced the prices for its bikes in August as it faced escalating competition, rising inventories, and softer post-pandemic demand.
In early November, Peloton estimated its revenue would only rise 9%-19% in fiscal 2022, compared to its prior forecast for 34% growth. That stunning slowdown sank Peloton's shares and spooked Affirm's investors.
Affirm has been gradually reducing its dependence on Peloton by signing these big partnerships with Amazon, Walmart, Target, Shopify, and American Airlines, but Peloton's big guidance cut could offset a lot of those gains.
In early September, Affirm predicted its revenue would rise 33%-37% in fiscal 2022. That's still an impressive growth rate, but it would represent a significant slowdown from its 71% growth in fiscal 2022.
At the time, Affirm predicted its gross merchandise volume (GMV) would rise "at least 50%" in 2022 on a reported basis, or 70% after excluding Peloton along with any potential gains from its Amazon partnership.
That confident forecast indicates Affirm's core business still generates strong organic growth on its own. However, Affirm's stock is already priced for perfection at nearly 40 times this year's sales -- so investors should expect any bad news about Peloton or its new partners to weigh down its shares.
Is Affirm's stock worth buying?
Affirm has impressed a lot of bulls with the growing adoption of its BNPL services and its ability to disrupt traditional credit card companies.
However, Affirm is still deeply unprofitable, and it faces tough competition from diversified fintech companies like Square, PayPal, and Adyen, which are all rolling out new BNPL services with big acquisitions or partnerships.
I'd prefer to invest in one of those three fintech companies instead of Affirm. Affirm's customer concentration issues are troubling, its stock is expensive, and its opaque, merchant-specific interest fees make it difficult to quantify the true value of its headline-grabbing partnerships with Amazon, American Airlines, and other large companies. The company still has a lot of growth potential, but it's simply too risky to recommend at these frothy levels.
10 stocks we like better than Affirm Holdings, Inc.
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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Leo Sun owns shares of Amazon and Square. The Motley Fool owns shares of and recommends Adyen N.V., Affirm Holdings, Inc., Amazon, PayPal Holdings, Peloton Interactive, Shopify, and Square. The Motley Fool recommends Adyen and recommends the following options: long January 2022 $1,920 calls on Amazon, long January 2022 $75 calls on PayPal Holdings, long January 2023 $1,140 calls on Shopify, short January 2022 $1,940 calls on Amazon, and short January 2023 $1,160 calls on Shopify. 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.
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First, Affirm's stock rose in late October after it struck a deal with American Airlines (NASDAQ: AAL) to offer BNPL options for its ticket sales. That disparity, along with a growing aversion toward the fees and compounding interest rates on traditional credit card payments, might make Affirm a popular checkout option for holiday travelers. However, Affirm is still deeply unprofitable, and it faces tough competition from diversified fintech companies like Square, PayPal, and Adyen, which are all rolling out new BNPL services with big acquisitions or partnerships.
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First, Affirm's stock rose in late October after it struck a deal with American Airlines (NASDAQ: AAL) to offer BNPL options for its ticket sales. That disparity, along with a growing aversion toward the fees and compounding interest rates on traditional credit card payments, might make Affirm a popular checkout option for holiday travelers. The Motley Fool owns shares of and recommends Adyen N.V., Affirm Holdings, Inc., Amazon, PayPal Holdings, Peloton Interactive, Shopify, and Square.
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First, Affirm's stock rose in late October after it struck a deal with American Airlines (NASDAQ: AAL) to offer BNPL options for its ticket sales. Affirm has been gradually reducing its dependence on Peloton by signing these big partnerships with Amazon, Walmart, Target, Shopify, and American Airlines, but Peloton's big guidance cut could offset a lot of those gains. The Motley Fool owns shares of and recommends Adyen N.V., Affirm Holdings, Inc., Amazon, PayPal Holdings, Peloton Interactive, Shopify, and Square.
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First, Affirm's stock rose in late October after it struck a deal with American Airlines (NASDAQ: AAL) to offer BNPL options for its ticket sales. But Peloton's pain could offset those gains In fiscal 2021, Affirm generated 20% of its revenue from Peloton, the connected exercise bike maker that experienced a major growth spurt during the pandemic. However, Affirm is still deeply unprofitable, and it faces tough competition from diversified fintech companies like Square, PayPal, and Adyen, which are all rolling out new BNPL services with big acquisitions or partnerships.
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4044.0
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2021-11-08 00:00:00 UTC
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Pre-Market Most Active for Nov 8, 2021 : EDU, TAL, GOTU, LCID, AUTL, SQQQ, TSLA, CHPT, PFE, TTD, AAL, IONQ
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AAL
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https://www.nasdaq.com/articles/pre-market-most-active-for-nov-8-2021-%3A-edu-tal-gotu-lcid-autl-sqqq-tsla-chpt-pfe-ttd-aal
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The NASDAQ 100 Pre-Market Indicator is up 6.56 to 16,365.94. The total Pre-Market volume is currently 43,267,086 shares traded.
The following are the most active stocks for the pre-market session:
New Oriental Education & Technology Group, Inc. (EDU) is +0.16 at $2.20, with 37,397,309 shares traded.EDU is scheduled to provide an earnings report on 11/9/2021, for the fiscal quarter ending Aug2021.
TAL Education Group (TAL) is +0.26 at $4.15, with 16,831,844 shares traded.TAL is scheduled to provide an earnings report on 11/11/2021, for the fiscal quarter ending Aug2021. The consensus earnings per share forecast is 0.04 per share, which represents a 2 percent increase over the EPS one Year Ago
Gaotu Techedu Inc. (GOTU) is +0.46 at $3.32, with 10,588,752 shares traded. GOTU's current last sale is 144.35% of the target price of $2.3.
Lucid Group, Inc. (LCID) is +1.54 at $43.34, with 5,225,149 shares traded.LCID is scheduled to provide an earnings report on 11/15/2021, for the fiscal quarter ending Sep2021.
Autolus Therapeutics plc (AUTL) is +1.59 at $7.15, with 4,152,032 shares traded. As reported by Zacks, the current mean recommendation for AUTL is in the "buy range".
ProShares UltraPro Short QQQ (SQQQ) is -0.02 at $6.15, with 2,093,155 shares traded. This represents a 1.65% increase from its 52 Week Low.
Tesla, Inc. (TSLA) is -51.84 at $1,170.25, with 1,945,725 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2021. The consensus EPS forecast is $1.32. TSLA's current last sale is 146.28% of the target price of $800.
ChargePoint Holdings, Inc. (CHPT) is +3.45 at $28.14, with 1,662,106 shares traded. As reported by Zacks, the current mean recommendation for CHPT is in the "buy range".
Pfizer, Inc. (PFE) is -0.18 at $48.43, with 1,633,723 shares traded. PFE's current last sale is 110.07% of the target price of $44.
The Trade Desk, Inc. (TTD) is +15.93 at $84.48, with 1,597,926 shares traded. As reported by Zacks, the current mean recommendation for TTD is in the "buy range".
American Airlines Group, Inc. (AAL) is +0.56 at $22.38, with 1,217,614 shares traded. AAL's current last sale is 114.77% of the target price of $19.5.
IonQ, Inc. (IONQ) is +2.6 at $21.87, with 1,215,018 shares traded., following a 52-week high recorded in prior regular session.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines Group, Inc. (AAL) is +0.56 at $22.38, with 1,217,614 shares traded. AAL's current last sale is 114.77% of the target price of $19.5. New Oriental Education & Technology Group, Inc. (EDU) is +0.16 at $2.20, with 37,397,309 shares traded.EDU is scheduled to provide an earnings report on 11/9/2021, for the fiscal quarter ending Aug2021.
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American Airlines Group, Inc. (AAL) is +0.56 at $22.38, with 1,217,614 shares traded. AAL's current last sale is 114.77% of the target price of $19.5. New Oriental Education & Technology Group, Inc. (EDU) is +0.16 at $2.20, with 37,397,309 shares traded.EDU is scheduled to provide an earnings report on 11/9/2021, for the fiscal quarter ending Aug2021.
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American Airlines Group, Inc. (AAL) is +0.56 at $22.38, with 1,217,614 shares traded. AAL's current last sale is 114.77% of the target price of $19.5. TAL Education Group (TAL) is +0.26 at $4.15, with 16,831,844 shares traded.TAL is scheduled to provide an earnings report on 11/11/2021, for the fiscal quarter ending Aug2021.
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American Airlines Group, Inc. (AAL) is +0.56 at $22.38, with 1,217,614 shares traded. AAL's current last sale is 114.77% of the target price of $19.5. The NASDAQ 100 Pre-Market Indicator is up 6.56 to 16,365.94.
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4045.0
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2021-11-08 00:00:00 UTC
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FOCUS-Lagging business travel takes shine off transatlantic restart
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AAL
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https://www.nasdaq.com/articles/focus-lagging-business-travel-takes-shine-off-transatlantic-restart
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nan
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nan
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By Sarah Young and Rajesh Kumar Singh
LONDON/CHICAGO, Nov 8 (Reuters) - Planes poured across the North Atlantic towards the United States on Monday, a boon for airlines after 19 months of travel restrictions - but that alone won't be enough for carriers whose profits depend on filling the most expensive seats.
Experts say the real battle of the transatlantic, the world's most lucrative travel market, takes place at the front of the plane, in first, business, and premium economy class, where those paying the top prices help drive airline profits.
Question marks remain over the pace and extent of the return of corporate travel budgets, after the pandemic showed online calls and virtual meetings offered a workable alternative.
That's mixed news for the likes of British Airways parent IAG ICAG.L and Germany's Lufthansa LHAG.DE, whose profits have in the past been buoyed by corporates spending more by booking closer to departure and flying at more convenient times.
Shares in IAG fell 2.6% on Monday after shrugging off warnings of a big 2021 loss to close higher on overall transatlantic travel hopes on Friday. .
Some business travellers are desperate to get back over the pond.
"We are in a relationship business and travelling is necessary to meet clients, to win deals," said Anthony Diamandakis, Citi's co-global head of Global Asset Managers.
For smaller, non-financial businesses too, travel is essential for trade.
"In my experience of the USA, it's a people market - deals get done face to face, with a handshake and looking into each other's eyes," Tony Kinsella, chief executive of UK-based materials development and testing company Lucideon, said.
The United States is allowing fully-vaccinated Britons and Europeans to enter from Monday, fully re-opening to two-way traffic for the first time since the pandemic started.
"USA, here we come," said Kinsella, who already has his tickets booked.
LONG SLOG
Most experts believe that corporate travel will lag the recovery in leisure travel.
U.S. spending on corporate travel is expected to reach only 25%–35% of 2019 levels by the fourth quarter of 2021, and 65%–80% a year later, according to a Deloitte survey of 150 travel managers.
One British FTSE 100-listed company, which did not want to be named, said it planned to reduce travel for internal meetings next year by two-thirds on 2019 levels, and by one-third for external meetings.
That means the full transatlantic restart might not be as lucrative as airlines would hope.
Europe-based carriers tend to be more reliant on transatlantic revenues than their U.S. competitors.
Pre-pandemic, those routes accounted for more than 26% of IAG's revenues and over 24% of Lufthansa's, according to Bernstein analyst estimates.
That compares with between 11% and 17% of passenger revenues at U.S. carriers American Airlines AAL.O, United Airlines UAL.O and Delta Air Lines DAL.N, and 16% of Air France-KLM's AIRF.PA.
UK-based Virgin Atlantic is even more exposed, with an estimated 60-70% of its revenues coming from transatlantic routes.
Airlines do not break down transatlantic profitability, but one analyst estimates that at IAG for instance, first class, business class and premium economy flying account for more than half of the profits it makes from transatlantic flying.
John Grant of global travel data specialist OAG does not expect transatlantic business travel to start to show any significant recovery until the second quarter of 2022.
"Major conferences in the first quarter of next year have already in many cases been cancelled since the planning cycle is so long," he said.
"Companies want to be sure that there is revenue to be had from such trips, so they will be waiting to see how economies and trade recover."
LEISURE UPGRADE
Airlines are going to be looking to leisure travellers to fill the gap left by corporates, and after months of lockdowns their pockets will be deeper, encouraging them to splash out on that premium economy or business class seat.
According to Willie Walsh, IAG's former chief executive who now heads up global airlines body IATA, the importance of corporate travel to airlines is often overstated.
"Everybody assumes that people travelling in the premium cabins are travelling for business. They're not," he told a recent industry event.
Airlines are trying harder than usual to entice leisure customers to upgrade given the dearth of business travellers.
"We're seeing when people do take that trip, they're thinking more of the experience," said Virgin Atlantic's CEO Shai Weiss.
IAG, Lufthansa and Virgin have spoken of strong demand for premium travel, and said that there are also signs that business travel is returning.
Delta also said last month that its corporate bookings for Europe doubled to 30% of 2019 levels following the reopening announcement.
OAG's Grant said pent-up demand and seasonal holidays had helped lift fares on transatlantic routes in recent weeks, and the market would likely remain strong until mid-January.
"The absence of business travel will make the airlines wary of adding capacity back too quickly in the first three months of next year," he said.
Grandmother and grandson finally to meet as U.S. flights reopen - Reuters News
(Writing by Sarah Young; Additional reporting by Rajesh Kumar Singh, Andres Gonzalez and Kate Holton; Editing by Jan Harvey, Tim Hepher and Emelia Sithole-Matarise)
((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.
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That compares with between 11% and 17% of passenger revenues at U.S. carriers American Airlines AAL.O, United Airlines UAL.O and Delta Air Lines DAL.N, and 16% of Air France-KLM's AIRF.PA. By Sarah Young and Rajesh Kumar Singh LONDON/CHICAGO, Nov 8 (Reuters) - Planes poured across the North Atlantic towards the United States on Monday, a boon for airlines after 19 months of travel restrictions - but that alone won't be enough for carriers whose profits depend on filling the most expensive seats. Experts say the real battle of the transatlantic, the world's most lucrative travel market, takes place at the front of the plane, in first, business, and premium economy class, where those paying the top prices help drive airline profits.
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That compares with between 11% and 17% of passenger revenues at U.S. carriers American Airlines AAL.O, United Airlines UAL.O and Delta Air Lines DAL.N, and 16% of Air France-KLM's AIRF.PA. By Sarah Young and Rajesh Kumar Singh LONDON/CHICAGO, Nov 8 (Reuters) - Planes poured across the North Atlantic towards the United States on Monday, a boon for airlines after 19 months of travel restrictions - but that alone won't be enough for carriers whose profits depend on filling the most expensive seats. Airlines do not break down transatlantic profitability, but one analyst estimates that at IAG for instance, first class, business class and premium economy flying account for more than half of the profits it makes from transatlantic flying.
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That compares with between 11% and 17% of passenger revenues at U.S. carriers American Airlines AAL.O, United Airlines UAL.O and Delta Air Lines DAL.N, and 16% of Air France-KLM's AIRF.PA. Airlines do not break down transatlantic profitability, but one analyst estimates that at IAG for instance, first class, business class and premium economy flying account for more than half of the profits it makes from transatlantic flying. John Grant of global travel data specialist OAG does not expect transatlantic business travel to start to show any significant recovery until the second quarter of 2022.
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That compares with between 11% and 17% of passenger revenues at U.S. carriers American Airlines AAL.O, United Airlines UAL.O and Delta Air Lines DAL.N, and 16% of Air France-KLM's AIRF.PA. U.S. spending on corporate travel is expected to reach only 25%–35% of 2019 levels by the fourth quarter of 2021, and 65%–80% a year later, according to a Deloitte survey of 150 travel managers. Airlines do not break down transatlantic profitability, but one analyst estimates that at IAG for instance, first class, business class and premium economy flying account for more than half of the profits it makes from transatlantic flying.
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4046.0
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2021-11-08 00:00:00 UTC
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Lagging business travel takes shine off transatlantic restart
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AAL
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https://www.nasdaq.com/articles/lagging-business-travel-takes-shine-off-transatlantic-restart
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nan
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nan
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By Sarah Young and Rajesh Kumar Singh
LONDON/CHICAGO, Nov 8 (Reuters) - Planes will fill the skies above the North Atlantic again from Monday, a boon for airlines after 19 months of restrictions, but that alone won't be enough for carriers whose profits depend on filling the most expensive seats.
The real battle of the transatlantic, the world's most lucrative travel market, takes place at the front of the plane, in first, business, and premium economy class, where those paying the top prices help drive airline profits.
Question marks remain over the pace and extent of the return of corporate travel budgets, after the pandemic showed online calls and virtual meetings offered a workable alternative.
That's bad news for the likes of British Airways parent company IAG ICAG.L and Germany's Lufthansa LHAG.DE, whose profits have in the past been buoyed by corporates spending more by booking closer to departure and flying at more convenient times.
Some travellers are desperate to get back over the pond.
"We are in a relationship business and travelling is necessary to meet clients, to win deals," said Anthony Diamandakis, Citi's co-global head of Global Asset Managers.
For smaller, non-financial businesses too, travel is essential for trade.
"In my experience of the USA, it's a people market - deals get done face to face, with a handshake and looking into each other's eyes," Tony Kinsella, chief executive of UK-based materials development and testing company Lucideon, said.
The United States will allow fully-vaccinated Britons and Europeans to enter from Monday, fully re-opening to two-way traffic for the first time since the pandemic started.
"USA, here we come," said Kinsella, who already has his tickets booked.
LONG SLOG
Most experts believe that corporate travel will lag the recovery in leisure travel.
U.S. spending on corporate travel is expected to reach only 25%–35% of 2019 levels by the fourth quarter of 2021, and 65%–80% a year later, according to a Deloitte survey of 150 travel managers.
One British FTSE 100-listed company, which did not want to be named, said it planned to reduce travel for internal meetings next year by two-thirds on 2019 levels, and by one-third for external meetings.
That means the full transatlantic restart might not be as lucrative as airlines would hope.
Europe-based carriers tend to be more reliant on transatlantic revenues than their U.S. competitors.
Pre-pandemic, those routes accounted for more than 26% of IAG's revenues and over 24% of Lufthansa's, according to Bernstein analyst estimates.
That compares with between 11% and 17% of passenger revenues at U.S. carriers American Airlines AAL.O, United Airlines UAL.O and Delta Air Lines DAL.N, and 16% of Air France-KLM's AIRF.PA.
UK-based Virgin Atlantic is even more exposed, with an estimated 60-70% of its revenues coming from transatlantic routes.
Airlines do not break down transatlantic profitability, but one analyst estimates that at IAG for instance, first class, business class and premium economy flying account for more than half of the profits it makes from transatlantic flying.
John Grant of global travel data specialist OAG does not expect transatlantic business travel to start to show any significant recovery until the second quarter of 2022.
"Major conferences in the first quarter of next year have already in many cases been cancelled since the planning cycle is so long," he said.
"Companies want to be sure that there is revenue to be had from such trips, so they will be waiting to see how economies and trade recover."
LEISURE UPGRADE
Airlines are going to be looking to leisure travellers to fill the gap left by corporates, and after months of lockdowns their pockets will be deeper, encouraging them to splash out on that premium economy or business class seat.
According to Willie Walsh, IAG's former chief executive who now heads up global airlines body IATA, the importance of corporate travel to airlines is often overstated.
"Everybody assumes that people travelling in the premium cabins are travelling for business. They're not," he told a recent industry event.
Airlines are trying harder than usual to entice leisure customers to upgrade given the dearth of business travellers.
"We're seeing when people do take that trip, they're thinking more of the experience," said Virgin Atlantic's CEO Shai Weiss.
IAG, Lufthansa and Virgin have spoken of strong demand for premium travel, and said that there are also signs that business travel is returning.
Delta also said last month that its corporate bookings for Europe doubled to 30% of 2019 levels following the reopening announcement.
OAG's Grant said pent-up demand and seasonal holidays had helped lift fares on transatlantic routes in recent weeks, and the market would likely remain strong until mid-January.
"The absence of business travel will make the airlines wary of adding capacity back too quickly in the first three months of next year," he said.
Grandmother and grandson finally to meet as U.S. flights reopen - Reuters News
(Writing by Sarah Young; Additional reporting by Rajesh Kumar Singh, Andres Gonzalez and Kate Holton; Editing by Jan Harvey)
((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.
|
That compares with between 11% and 17% of passenger revenues at U.S. carriers American Airlines AAL.O, United Airlines UAL.O and Delta Air Lines DAL.N, and 16% of Air France-KLM's AIRF.PA. The real battle of the transatlantic, the world's most lucrative travel market, takes place at the front of the plane, in first, business, and premium economy class, where those paying the top prices help drive airline profits. That's bad news for the likes of British Airways parent company IAG ICAG.L and Germany's Lufthansa LHAG.DE, whose profits have in the past been buoyed by corporates spending more by booking closer to departure and flying at more convenient times.
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That compares with between 11% and 17% of passenger revenues at U.S. carriers American Airlines AAL.O, United Airlines UAL.O and Delta Air Lines DAL.N, and 16% of Air France-KLM's AIRF.PA. By Sarah Young and Rajesh Kumar Singh LONDON/CHICAGO, Nov 8 (Reuters) - Planes will fill the skies above the North Atlantic again from Monday, a boon for airlines after 19 months of restrictions, but that alone won't be enough for carriers whose profits depend on filling the most expensive seats. Airlines do not break down transatlantic profitability, but one analyst estimates that at IAG for instance, first class, business class and premium economy flying account for more than half of the profits it makes from transatlantic flying.
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That compares with between 11% and 17% of passenger revenues at U.S. carriers American Airlines AAL.O, United Airlines UAL.O and Delta Air Lines DAL.N, and 16% of Air France-KLM's AIRF.PA. Airlines do not break down transatlantic profitability, but one analyst estimates that at IAG for instance, first class, business class and premium economy flying account for more than half of the profits it makes from transatlantic flying. John Grant of global travel data specialist OAG does not expect transatlantic business travel to start to show any significant recovery until the second quarter of 2022.
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That compares with between 11% and 17% of passenger revenues at U.S. carriers American Airlines AAL.O, United Airlines UAL.O and Delta Air Lines DAL.N, and 16% of Air France-KLM's AIRF.PA. U.S. spending on corporate travel is expected to reach only 25%–35% of 2019 levels by the fourth quarter of 2021, and 65%–80% a year later, according to a Deloitte survey of 150 travel managers. Airlines do not break down transatlantic profitability, but one analyst estimates that at IAG for instance, first class, business class and premium economy flying account for more than half of the profits it makes from transatlantic flying.
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4047.0
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2021-11-07 00:00:00 UTC
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U.S. braces for surge of vaccinated international travelers
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AAL
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https://www.nasdaq.com/articles/u.s.-braces-for-surge-of-vaccinated-international-travelers-2021-11-07
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By David Shepardson
WASHINGTON, Nov 7 (Reuters) - The United States is expecting a flood of international visitors crossing its borders by air and by land on Monday after lifting travel restrictions for much of the world's population first imposed in early 2020 to address the spread of COVID-19.
United Airlines UAL.N is expecting about 50% more total international inbound passengers Monday compared to last Monday when it had about 20,000.
And Delta Air Lines DAL.N Chief Executive Ed Bastian has warned travelers should be prepared for initial long lines.
"It's going to be a bit sloppy at first. I can assure you, there will be lines unfortunately," Bastian said, adding that "we'll get it sorted out".
Delta said in the six weeks since the U.S reopening was announced it has seen a 450% increase in international point-of-sale bookings versus the six weeks prior to the announcement.
White House spokesman Kevin Munoz said on Twitter "As we expect high demand when the US lifts its existing air and land travel restrictions Monday, we are taking critical steps to be prepared by providing additional resources."
The Biden administration has held multiple calls with U.S. airlines to prepare for the influx of additional travelers that will begin arriving at U.S. airports and has warned travelers crossing from Canada and Mexico by land or ferry to be prepared for longer waits starting Monday.
For Bhavna Patel, a flight from London will take her to New York on Monday to see her first grandchild after more than a year of watching him grow via FaceTime.
The rules have barred most non-U.S. citizens who within the prior 14 days have been in 33 countries -- the 26 Schengen countries in Europe without border controls, China, India, South Africa, Iran, Brazil, Britain and Ireland.
Trade group U.S. Travel said the countries accounted for 53% of all overseas visitors to the United States in 2019 and border communities were hit hard by the loss of tourists crossing from Mexico and Canada. The group estimates declines in international visitation "resulted in nearly $300 billion in lost export income" since March 2020.
U.S. airlines are boosting flights to Europe and other destinations that were impacted by the restrictions. Airlines are planning events on Monday with executives meeting some of the first flights.
Commerce Secretary Gina Raimondo and United Airlines UAL.N President Brett Hart are holding an event at Chicago's O'Hare International Airport Monday to mark the reopening.
U.S. officials plan an Instagram live chat on Nov. 9 to help answer questions.
Many international flights are expected to operate close to full or full on Monday, with high passenger volume throughout the following weeks.
Airlines will check vaccination documentation for international travelers as they currently do for COVID-19 test results. At land border crossings, U.S. Customs and Border Protection will ask if travelers have been vaccinated and spot check some documentation.
Children under 18 are exempt from the new vaccine requirements. Non-tourist travelers from nearly 50 countries with nationwide vaccination rates of less than 10% will also be eligible for exemption.
Also Monday, new contact tracing rules will take effect requiring airlines to collect information from international air passengers if needed "to follow up with travelers who have been exposed to COVID-19 variants or other pathogens."
(Reporting by David Shepardson)
((David.Shepardson@thomsonreuters.com; 2028988324;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By David Shepardson WASHINGTON, Nov 7 (Reuters) - The United States is expecting a flood of international visitors crossing its borders by air and by land on Monday after lifting travel restrictions for much of the world's population first imposed in early 2020 to address the spread of COVID-19. White House spokesman Kevin Munoz said on Twitter "As we expect high demand when the US lifts its existing air and land travel restrictions Monday, we are taking critical steps to be prepared by providing additional resources." Also Monday, new contact tracing rules will take effect requiring airlines to collect information from international air passengers if needed "to follow up with travelers who have been exposed to COVID-19 variants or other pathogens."
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By David Shepardson WASHINGTON, Nov 7 (Reuters) - The United States is expecting a flood of international visitors crossing its borders by air and by land on Monday after lifting travel restrictions for much of the world's population first imposed in early 2020 to address the spread of COVID-19. And Delta Air Lines DAL.N Chief Executive Ed Bastian has warned travelers should be prepared for initial long lines. Airlines will check vaccination documentation for international travelers as they currently do for COVID-19 test results.
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By David Shepardson WASHINGTON, Nov 7 (Reuters) - The United States is expecting a flood of international visitors crossing its borders by air and by land on Monday after lifting travel restrictions for much of the world's population first imposed in early 2020 to address the spread of COVID-19. The Biden administration has held multiple calls with U.S. airlines to prepare for the influx of additional travelers that will begin arriving at U.S. airports and has warned travelers crossing from Canada and Mexico by land or ferry to be prepared for longer waits starting Monday. Also Monday, new contact tracing rules will take effect requiring airlines to collect information from international air passengers if needed "to follow up with travelers who have been exposed to COVID-19 variants or other pathogens."
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United Airlines UAL.N is expecting about 50% more total international inbound passengers Monday compared to last Monday when it had about 20,000. Airlines are planning events on Monday with executives meeting some of the first flights. Airlines will check vaccination documentation for international travelers as they currently do for COVID-19 test results.
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4048.0
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2021-11-05 00:00:00 UTC
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AAL Makes Bullish Cross Above Critical Moving Average
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AAL
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https://www.nasdaq.com/articles/aal-makes-bullish-cross-above-critical-moving-average-2021-11-05
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nan
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nan
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In trading on Friday, shares of American Airlines Group Inc (Symbol: AAL) crossed above their 200 day moving average of $20.98, changing hands as high as $22.06 per share. American Airlines Group Inc shares are currently trading up about 4.4% on the day. The chart below shows the one year performance of AAL shares, versus its 200 day moving average:
Looking at the chart above, AAL's low point in its 52 week range is $11.275 per share, with $26.09 as the 52 week high point — that compares with a last trade of $21.55. The AAL DMA information above was sourced from TechnicalAnalysisChannel.com
Click here to find out which 9 other stocks recently crossed above their 200 day moving average »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Friday, shares of American Airlines Group Inc (Symbol: AAL) crossed above their 200 day moving average of $20.98, changing hands as high as $22.06 per share. The chart below shows the one year performance of AAL shares, versus its 200 day moving average: Looking at the chart above, AAL's low point in its 52 week range is $11.275 per share, with $26.09 as the 52 week high point — that compares with a last trade of $21.55. The AAL DMA information above was sourced from TechnicalAnalysisChannel.com Click here to find out which 9 other stocks recently crossed above their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Friday, shares of American Airlines Group Inc (Symbol: AAL) crossed above their 200 day moving average of $20.98, changing hands as high as $22.06 per share. The chart below shows the one year performance of AAL shares, versus its 200 day moving average: Looking at the chart above, AAL's low point in its 52 week range is $11.275 per share, with $26.09 as the 52 week high point — that compares with a last trade of $21.55. The AAL DMA information above was sourced from TechnicalAnalysisChannel.com Click here to find out which 9 other stocks recently crossed above their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Friday, shares of American Airlines Group Inc (Symbol: AAL) crossed above their 200 day moving average of $20.98, changing hands as high as $22.06 per share. The chart below shows the one year performance of AAL shares, versus its 200 day moving average: Looking at the chart above, AAL's low point in its 52 week range is $11.275 per share, with $26.09 as the 52 week high point — that compares with a last trade of $21.55. The AAL DMA information above was sourced from TechnicalAnalysisChannel.com Click here to find out which 9 other stocks recently crossed above their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Friday, shares of American Airlines Group Inc (Symbol: AAL) crossed above their 200 day moving average of $20.98, changing hands as high as $22.06 per share. The chart below shows the one year performance of AAL shares, versus its 200 day moving average: Looking at the chart above, AAL's low point in its 52 week range is $11.275 per share, with $26.09 as the 52 week high point — that compares with a last trade of $21.55. The AAL DMA information above was sourced from TechnicalAnalysisChannel.com Click here to find out which 9 other stocks recently crossed above their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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4049.0
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2021-11-05 00:00:00 UTC
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Pre-Market Most Active for Nov 5, 2021 : PFE, SQQQ, PTON, DKNG, MRK, AAL, CCL, PROG, MRNA, F, MOS, OIS
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AAL
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https://www.nasdaq.com/articles/pre-market-most-active-for-nov-5-2021-%3A-pfe-sqqq-pton-dkng-mrk-aal-ccl-prog-mrna-f-mos-ois
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nan
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nan
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The NASDAQ 100 Pre-Market Indicator is up 27.11 to 16,373.35. The total Pre-Market volume is currently 35,658,567 shares traded.
The following are the most active stocks for the pre-market session:
Pfizer, Inc. (PFE) is +5.56 at $49.41, with 9,748,065 shares traded. PFE's current last sale is 112.3% of the target price of $44.
ProShares UltraPro Short QQQ (SQQQ) is -0.04 at $6.15, with 2,714,640 shares traded., following a 52-week high recorded in prior regular session.
Peloton Interactive, Inc. (PTON) is -27.59 at $58.47, with 2,285,127 shares traded. As reported by Zacks, the current mean recommendation for PTON is in the "buy range".
DraftKings Inc. (DKNG) is -3.29 at $41.39, with 2,220,522 shares traded. DKNG's current last sale is 58.3% of the target price of $71.
Merck & Company, Inc. (MRK) is -8.14 at $82.40, with 2,161,565 shares traded., following a 52-week high recorded in prior regular session.
American Airlines Group, Inc. (AAL) is +1.0801 at $21.71, with 1,898,167 shares traded. AAL's current last sale is 111.33% of the target price of $19.5.
Carnival Corporation (CCL) is +1.0401 at $23.92, with 1,893,590 shares traded. CCL's current last sale is 95.68% of the target price of $25.
Progenity, Inc. (PROG) is +0.05 at $3.65, with 1,756,664 shares traded.PROG is scheduled to provide an earnings report on 11/10/2021, for the fiscal quarter ending Sep2021. The consensus earnings per share forecast is -0.47 per share, which represents a -101 percent increase over the EPS one Year Ago
Moderna, Inc. (MRNA) is -30.96 at $253.06, with 1,539,240 shares traded. MRNA's current last sale is 115.55% of the target price of $219.
Ford Motor Company (F) is +0.3 at $19.72, with 1,060,892 shares traded., following a 52-week high recorded in prior regular session.
Mosaic Company (The) (MOS) is -2.08 at $36.72, with 967,968 shares traded. MOS's current last sale is 85.4% of the target price of $43.
Oil States International, Inc. (OIS) is +0.05 at $6.58, with 867,790 shares traded. OIS's current last sale is 94% of the target price of $7.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines Group, Inc. (AAL) is +1.0801 at $21.71, with 1,898,167 shares traded. AAL's current last sale is 111.33% of the target price of $19.5. ProShares UltraPro Short QQQ (SQQQ) is -0.04 at $6.15, with 2,714,640 shares traded., following a 52-week high recorded in prior regular session.
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American Airlines Group, Inc. (AAL) is +1.0801 at $21.71, with 1,898,167 shares traded. AAL's current last sale is 111.33% of the target price of $19.5. ProShares UltraPro Short QQQ (SQQQ) is -0.04 at $6.15, with 2,714,640 shares traded., following a 52-week high recorded in prior regular session.
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American Airlines Group, Inc. (AAL) is +1.0801 at $21.71, with 1,898,167 shares traded. AAL's current last sale is 111.33% of the target price of $19.5. The total Pre-Market volume is currently 35,658,567 shares traded.
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AAL's current last sale is 111.33% of the target price of $19.5. American Airlines Group, Inc. (AAL) is +1.0801 at $21.71, with 1,898,167 shares traded. PFE's current last sale is 112.3% of the target price of $44.
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4050.0
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2021-11-05 00:00:00 UTC
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US STOCKS-S&P, Nasdaq futures scale new heights on earnings bullishness
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AAL
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https://www.nasdaq.com/articles/us-stocks-sp-nasdaq-futures-scale-new-heights-on-earnings-bullishness-2021-11-05
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nan
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nan
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By Devik Jain
Nov 5 (Reuters) - Futures tracking the S&P 500 and Nasdaq indexes hit a record high on Friday, boosted by a batch of strong earnings reports and Pfizer, while investors looked to monthly employment data for clues on the pace of economic growth.
Pfizer Inc PFE.N jumped 8.3% in pre-market trading after the drugmaker's experimental antiviral pill for COVID-19 cut by 89% the chances of hospitalization or death for adults at risk of developing severe disease.
Shares of Merck MRK.N slipped 7.8%.
Travel stocks rose following the news, with American Airline AAL.O, United Airlines UAL.O, Delta Air Lines DAL.N, cruise operators Carnival Corp CCL.N and Norwegian Cruise NCLH.N rising between 2% and 3.4%.
Among earnings moves, Expedia group EXPE.O jumped 12.3% after the online travel agency posted upbeat third-quarter revenue on a rebound in travel demand.
Microchip Technology MCHP.O added 3.7% as brokerages raised their price targets on the chipmaker's stock on its upbeat third-quarter outlook.
That also boosted shares of industry peer Nvidia Corp NVDA.O, which climbed 2.7%. The stock was set to add to the near 17% rally in the previous session.
Pinterest Inc PINS.N climbed 4.6% after the image-sharing company expects fourth-quarter revenue growth in the high-teens percentage range as retail ad spending boomed before the holiday season.
A stellar third-quarter reporting season, coupled with cheery outlook on earnings growth as well as a central bank in no rush to hike interest rates, has boosted investor appetite for equities, helping them look past worries about inflation, supply chain disruptions and labor shortages.
Focus is now on the Labor Department's closely watched nonfarm payrolls report at 08:30 am ET, which will likely show U.S. job growth accelerated in October helped by subsiding COVID-19 infections, although worker shortages persisted.
The S&P 500 .SPX and Nasdaq .IXIC notched record high closes for sixth straight sessions on Thursday as investors digested the Federal Reserve's decision to start reducing its monthly bond purchases.
Meanwhile, the U.S. House of Representatives is expected to vote on Friday on the social policy and climate-change bill and a bipartisan infrastructure bill.
At 07:14 a.m. ET, Dow e-minis 1YMcv1 were up 33 points, or 0.09%, S&P 500 e-minis EScv1 were up 11 points, or 0.24%, and Nasdaq 100 e-minis NQcv1 were up 52.25 points, or 0.32%.
Mega-cap technology stocks Amazon.com AMZN.O, Apple Inc AAPL.O, Microsoft Corp MSFT.O and Google-owner Alphabet Inc GOOGL.O moved higher, while Big banks rebounded from a sharp fall in the previous session.
Peloton Interactive Inc PTON.O sank 32.4% after it slashed its full-year sales outlook by up to $1 billion.
(Reporting by Devik Jain in Bengaluru; Editing by Maju Samuel)
((Devik.Jain@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 6182 2062; ;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Travel stocks rose following the news, with American Airline AAL.O, United Airlines UAL.O, Delta Air Lines DAL.N, cruise operators Carnival Corp CCL.N and Norwegian Cruise NCLH.N rising between 2% and 3.4%. By Devik Jain Nov 5 (Reuters) - Futures tracking the S&P 500 and Nasdaq indexes hit a record high on Friday, boosted by a batch of strong earnings reports and Pfizer, while investors looked to monthly employment data for clues on the pace of economic growth. A stellar third-quarter reporting season, coupled with cheery outlook on earnings growth as well as a central bank in no rush to hike interest rates, has boosted investor appetite for equities, helping them look past worries about inflation, supply chain disruptions and labor shortages.
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Travel stocks rose following the news, with American Airline AAL.O, United Airlines UAL.O, Delta Air Lines DAL.N, cruise operators Carnival Corp CCL.N and Norwegian Cruise NCLH.N rising between 2% and 3.4%. By Devik Jain Nov 5 (Reuters) - Futures tracking the S&P 500 and Nasdaq indexes hit a record high on Friday, boosted by a batch of strong earnings reports and Pfizer, while investors looked to monthly employment data for clues on the pace of economic growth. Among earnings moves, Expedia group EXPE.O jumped 12.3% after the online travel agency posted upbeat third-quarter revenue on a rebound in travel demand.
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Travel stocks rose following the news, with American Airline AAL.O, United Airlines UAL.O, Delta Air Lines DAL.N, cruise operators Carnival Corp CCL.N and Norwegian Cruise NCLH.N rising between 2% and 3.4%. By Devik Jain Nov 5 (Reuters) - Futures tracking the S&P 500 and Nasdaq indexes hit a record high on Friday, boosted by a batch of strong earnings reports and Pfizer, while investors looked to monthly employment data for clues on the pace of economic growth. A stellar third-quarter reporting season, coupled with cheery outlook on earnings growth as well as a central bank in no rush to hike interest rates, has boosted investor appetite for equities, helping them look past worries about inflation, supply chain disruptions and labor shortages.
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Travel stocks rose following the news, with American Airline AAL.O, United Airlines UAL.O, Delta Air Lines DAL.N, cruise operators Carnival Corp CCL.N and Norwegian Cruise NCLH.N rising between 2% and 3.4%. By Devik Jain Nov 5 (Reuters) - Futures tracking the S&P 500 and Nasdaq indexes hit a record high on Friday, boosted by a batch of strong earnings reports and Pfizer, while investors looked to monthly employment data for clues on the pace of economic growth. Among earnings moves, Expedia group EXPE.O jumped 12.3% after the online travel agency posted upbeat third-quarter revenue on a rebound in travel demand.
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4051.0
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2021-11-05 00:00:00 UTC
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US STOCKS-Wall St eyes record open on strong jobs report, Pfizer COVID-19 pill cheer
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AAL
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https://www.nasdaq.com/articles/us-stocks-wall-st-eyes-record-open-on-strong-jobs-report-pfizer-covid-19-pill-cheer-2021
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nan
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nan
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By Devik Jain and Bansari Mayur Kamdar
Nov 5 (Reuters) - Wall Street's main indexes were set for a record open on Friday, as data showing strong jobs growth in October, coupled with positive earnings and Pfizer's COVID-19 pill update, boosted sentiment about economic growth.
The Labor Department's report showed U.S. employment increased more than expected last month as COVID-19 infections over the summer subsided, offering more evidence that economic activity was regaining momentum early in the fourth quarter.
Pfizer Inc PFE.N jumped 10.8% in premarket trading after the drugmaker's experimental antiviral pill for COVID-19 cut by 89% the chances of hospitalization or death for adults at risk of developing severe disease.
Shares of Merck MRK.N slipped 9.0%.
Travel stocks rose following the news, with American Airlines AAL.O, United Airlines UAL.O, Delta Air Lines DAL.N, cruise operators Carnival Corp CCL.N and Norwegian Cruise NCLH.N rising between 5.6% and 5.9%.
"We couldn't get more positive news. The market was up a lot prior to this with the Pfizer news, but now this does feel like it's really the end of the pandemic," said Thomas Hayes, managing member, Great Hill Capital LLC, New York.
"It's a quick efficacious solution ... if you get diagnosed, you just take the pill and you're back in action so the market loves it, the travel and leisure sector loves it and we love it."
Among earnings moves, Expedia EXPE.O jumped 14.6% after the online travel agency posted upbeat third-quarter revenue on a rebound in travel demand.
Pinterest Inc PINS.N climbed 2% after the image-sharing company expects fourth-quarter revenue growth in the high-teens percentage range as retail ad spending boomed before the holiday season.
A stellar third-quarter reporting season, coupled with cheery outlook on earnings growth as well as a central bank in no rush to hike interest rates, has boosted investor appetite for equities, helping them look past worries about inflation, supply chain disruptions and labor shortages.
The S&P 500 .SPX and Nasdaq .IXIC notched record high closes for the sixth session in a row on Thursday as investors digested the Federal Reserve's decision to start reducing its monthly bond purchases.
Meanwhile, the U.S. House of Representatives is expected to vote on Friday on the social policy and climate-change bill and a bipartisan infrastructure bill.
At 8:51 a.m. ET, Dow e-minis 1YMcv1 were up 140 points, or 0.39%, S&P 500 e-minis EScv1 were up 20.5 points, or 0.44%, and Nasdaq 100 e-minis NQcv1 were up 48.5 points, or 0.3%.
Economy-sensitive stocks including oil majors Exxon Mobil XOM.Nand Chevron Corp CVX.N, industrials Boeing Co BA.Nand Caterpillar Inc CAT.N and big banks moved sharply higher.
Peloton Interactive Inc PTON.O sank 33.5% after it slashed its full-year sales outlook by up to $1 billion.
(Reporting by Devik Jain and Bansari Mayur Kamdar in Bengaluru; Editing by Maju Samuel)
((Devik.Jain@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 6182 2062; ;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Travel stocks rose following the news, with American Airlines AAL.O, United Airlines UAL.O, Delta Air Lines DAL.N, cruise operators Carnival Corp CCL.N and Norwegian Cruise NCLH.N rising between 5.6% and 5.9%. The Labor Department's report showed U.S. employment increased more than expected last month as COVID-19 infections over the summer subsided, offering more evidence that economic activity was regaining momentum early in the fourth quarter. A stellar third-quarter reporting season, coupled with cheery outlook on earnings growth as well as a central bank in no rush to hike interest rates, has boosted investor appetite for equities, helping them look past worries about inflation, supply chain disruptions and labor shortages.
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Travel stocks rose following the news, with American Airlines AAL.O, United Airlines UAL.O, Delta Air Lines DAL.N, cruise operators Carnival Corp CCL.N and Norwegian Cruise NCLH.N rising between 5.6% and 5.9%. By Devik Jain and Bansari Mayur Kamdar Nov 5 (Reuters) - Wall Street's main indexes were set for a record open on Friday, as data showing strong jobs growth in October, coupled with positive earnings and Pfizer's COVID-19 pill update, boosted sentiment about economic growth. A stellar third-quarter reporting season, coupled with cheery outlook on earnings growth as well as a central bank in no rush to hike interest rates, has boosted investor appetite for equities, helping them look past worries about inflation, supply chain disruptions and labor shortages.
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Travel stocks rose following the news, with American Airlines AAL.O, United Airlines UAL.O, Delta Air Lines DAL.N, cruise operators Carnival Corp CCL.N and Norwegian Cruise NCLH.N rising between 5.6% and 5.9%. By Devik Jain and Bansari Mayur Kamdar Nov 5 (Reuters) - Wall Street's main indexes were set for a record open on Friday, as data showing strong jobs growth in October, coupled with positive earnings and Pfizer's COVID-19 pill update, boosted sentiment about economic growth. A stellar third-quarter reporting season, coupled with cheery outlook on earnings growth as well as a central bank in no rush to hike interest rates, has boosted investor appetite for equities, helping them look past worries about inflation, supply chain disruptions and labor shortages.
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Travel stocks rose following the news, with American Airlines AAL.O, United Airlines UAL.O, Delta Air Lines DAL.N, cruise operators Carnival Corp CCL.N and Norwegian Cruise NCLH.N rising between 5.6% and 5.9%. By Devik Jain and Bansari Mayur Kamdar Nov 5 (Reuters) - Wall Street's main indexes were set for a record open on Friday, as data showing strong jobs growth in October, coupled with positive earnings and Pfizer's COVID-19 pill update, boosted sentiment about economic growth. The Labor Department's report showed U.S. employment increased more than expected last month as COVID-19 infections over the summer subsided, offering more evidence that economic activity was regaining momentum early in the fourth quarter.
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4052.0
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2021-11-05 00:00:00 UTC
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Why Airline Stocks Are Flying High Today
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AAL
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https://www.nasdaq.com/articles/why-airline-stocks-are-flying-high-today-2021-11-05
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nan
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nan
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What happened
Economic data is coming in strong, travelers are returning to the skies, and airlines are soaring. Shares of Delta Air Lines (NYSE: DAL), American Airlines Group (NASDAQ: AAL), United Airlines Holdings (NASDAQ: UAL), Southwest Airlines (NYSE: LUV), JetBlue Airways (NASDAQ: JBLU), and Spirit Airlines (NYSE: SAVE) were all up 6% or more in Friday trading as investors cheered strong macro news and a fresh data point supporting the argument that there is pent up demand for air travel.
So what
The airlines were hit hard by the pandemic, but have seen a steady return in travel this year as the COVID-19 vaccine became more widespread. But while the industry is filling its seats, it is doing so mostly thanks to low-margin domestic vacation travelers. Airlines rely on premium fares from business travelers and international trips to boost profitability, and so far those segments of the market have been sluggish.
Image source: Getty Images.
There are signs that is beginning to change. On Friday, Delta said that it saw a 450% jump in international bookings in the six weeks since the United States announced plans to reopen international borders. On Sept. 20, the White House said the country would reopen in November to travelers from 33 countries, including most of Europe, who are fully vaccinated.
Delta said it expects to operate 139 flights from 55 international destinations on day one, Nov. 8. The company said many of those flights are expected to operate at 100% capacity that day.
"This is the start of a new era for travel and for many people around the world who have not been able to see loved ones for almost two years," CEO Ed Bastian said in a statement. "While we have seen many countries reopen their borders to American visitors over the summer, our international customers have not been able to fly with us or visit the U.S. All of that changes now."
There is other good news fueling the airline rally. The Biden administration is delaying a vaccine mandate for federal contractors, including airlines, to Jan. 4, from Dec. 8. In response, American is pushing back its own internal deadline for employees to be vaccinated, giving the carrier more time to work out its schedule, get employees compliant, and reduce the risk of an airline systemwide meltdown over the holiday travel period.
Wall Street is also in rally mode Friday after a Labor Department report that showed non-farm payrolls rose by 531,000 jobs last month, ahead of the 450,000 expected. The unemployment rate fell to 4.6%, its lowest mark since March 2020, and hourly earnings rose by 4.9%. Airlines do best when the economy is strong and travelers have money to spend, making this report bullish for the sector.
Now what
We're on a path toward a recovery, but investors should be warned airlines will not be able to get there overnight. Delta's news on international demand is one of the more bullish industry-specific data points I've seen in recent months, but it only marks the beginning of a rebound that could take until 2023 or 2024 to fully materialize.
Investors interested in buying into the rally should expect to buckle up and prepare for additional turbulence should the next data points not come in as strong as these, and focus on top names. Delta was an industry leader heading into the pandemic and appears likely to be one of the first of the old-line airlines to recover. Southwest and Spirit are the champions of the domestic recovery, and should benefit more than most from continued strong U.S. economic news.
The bottom line is airlines appear to be headed in the right direction, and investors are climbing aboard on Friday as the broader markets are in rally mode.
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*Stock Advisor returns as of October 20, 2021
Lou Whiteman owns shares of Delta Air Lines and Spirit Airlines. The Motley Fool owns shares of and recommends Spirit Airlines. The Motley Fool recommends Delta Air Lines, JetBlue Airways, and Southwest Airlines. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shares of Delta Air Lines (NYSE: DAL), American Airlines Group (NASDAQ: AAL), United Airlines Holdings (NASDAQ: UAL), Southwest Airlines (NYSE: LUV), JetBlue Airways (NASDAQ: JBLU), and Spirit Airlines (NYSE: SAVE) were all up 6% or more in Friday trading as investors cheered strong macro news and a fresh data point supporting the argument that there is pent up demand for air travel. Wall Street is also in rally mode Friday after a Labor Department report that showed non-farm payrolls rose by 531,000 jobs last month, ahead of the 450,000 expected. Delta's news on international demand is one of the more bullish industry-specific data points I've seen in recent months, but it only marks the beginning of a rebound that could take until 2023 or 2024 to fully materialize.
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Shares of Delta Air Lines (NYSE: DAL), American Airlines Group (NASDAQ: AAL), United Airlines Holdings (NASDAQ: UAL), Southwest Airlines (NYSE: LUV), JetBlue Airways (NASDAQ: JBLU), and Spirit Airlines (NYSE: SAVE) were all up 6% or more in Friday trading as investors cheered strong macro news and a fresh data point supporting the argument that there is pent up demand for air travel. See the 10 stocks *Stock Advisor returns as of October 20, 2021 Lou Whiteman owns shares of Delta Air Lines and Spirit Airlines. The Motley Fool recommends Delta Air Lines, JetBlue Airways, and Southwest Airlines.
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Shares of Delta Air Lines (NYSE: DAL), American Airlines Group (NASDAQ: AAL), United Airlines Holdings (NASDAQ: UAL), Southwest Airlines (NYSE: LUV), JetBlue Airways (NASDAQ: JBLU), and Spirit Airlines (NYSE: SAVE) were all up 6% or more in Friday trading as investors cheered strong macro news and a fresh data point supporting the argument that there is pent up demand for air travel. See the 10 stocks *Stock Advisor returns as of October 20, 2021 Lou Whiteman owns shares of Delta Air Lines and Spirit Airlines. The Motley Fool recommends Delta Air Lines, JetBlue Airways, and Southwest Airlines.
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Shares of Delta Air Lines (NYSE: DAL), American Airlines Group (NASDAQ: AAL), United Airlines Holdings (NASDAQ: UAL), Southwest Airlines (NYSE: LUV), JetBlue Airways (NASDAQ: JBLU), and Spirit Airlines (NYSE: SAVE) were all up 6% or more in Friday trading as investors cheered strong macro news and a fresh data point supporting the argument that there is pent up demand for air travel. Southwest and Spirit are the champions of the domestic recovery, and should benefit more than most from continued strong U.S. economic news. The bottom line is airlines appear to be headed in the right direction, and investors are climbing aboard on Friday as the broader markets are in rally mode.
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4053.0
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2021-11-04 00:00:00 UTC
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U.S. FAA refers 37 unruly airline passengers to FBI for criminal review
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AAL
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https://www.nasdaq.com/articles/u.s.-faa-refers-37-unruly-airline-passengers-to-fbi-for-criminal-review-2021-11-04
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nan
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nan
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By David Shepardson
WASHINGTON, Nov 4 (Reuters) - The Federal Aviation Administration (FAA) said Thursday it has referred more than three dozen unruly passengers to the FBI for potential criminal prosecution amid a sharp rise in onboard incidents this year.
The FAA and Justice Department said they had established an information-sharing protocol for the FAA to refer unruly passenger cases to the FBI for review.
The Justice Department and FBI "are committed to prioritizing the review of the cases referred by the FAA and initiating criminal prosecution where appropriate," the agencies said.
U.S. airlines have reported a record number of disruptive and sometimes violent incidents this year, and the FAA has pledged a "zero tolerance" approach. The FAA and Justice Department said the "increased coordination is part of a broader effort to prevent dangerous unruly passenger incidents."
An FAA spokesman said the agency has initiated 227 enforcement cases and referred 37 to the FBI for review.
“Let this serve both as a warning and a deterrent: If you disrupt a flight, you risk not just fines from the FAA but federal criminal prosecution as well,” said FAA Administrator Steve Dickson.
On Oct. 8, President Joe Biden said he instructed the Justice Department to "deal" with the rising number of violent incidents onboard planes.
FBI Acting Assistant Director Jay Greenberg said the agency is "working in tandem with our partners to ensure the safety of all passengers and investigate crimes within our jurisdiction aboard commercial flights."
Through Nov. 1, there have been 5,033 reports of unruly passenger incidents, including 3,642 related to pandemic face covering regulations.
In June, a group representing major U.S. airlines, such as American Airlines, Delta Air Lines DAL.N and United Airlines, as well as aviation unions, asked the Justice Department to prosecute violent air passengers.
FAA and Justice Department officials began meeting in August "to develop an efficient method for referring the most serious unruly-passenger cases for potential criminal prosecution," the agencies said, adding that "resulted in a process where the FAA regularly sends cases to the FBI, which forwards those that merit potential prosecution to field offices for further investigation."
On Monday, U.S. prosecutors in Colorado charged a 20-year-old California man with assaulting a flight attendant on an Oct. 27 American Airlines flight bound for Santa Ana, California, that forced the plane to land.
Witnesses and court records said a flight attendant was punched in the nose, resulting in bleeding and a concussion. American Airlines Chief Executive Doug Parker called it "one of the worst displays of unruly behavior we’ve ever witnessed."
(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.
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By David Shepardson WASHINGTON, Nov 4 (Reuters) - The Federal Aviation Administration (FAA) said Thursday it has referred more than three dozen unruly passengers to the FBI for potential criminal prosecution amid a sharp rise in onboard incidents this year. FBI Acting Assistant Director Jay Greenberg said the agency is "working in tandem with our partners to ensure the safety of all passengers and investigate crimes within our jurisdiction aboard commercial flights." FAA and Justice Department officials began meeting in August "to develop an efficient method for referring the most serious unruly-passenger cases for potential criminal prosecution," the agencies said, adding that "resulted in a process where the FAA regularly sends cases to the FBI, which forwards those that merit potential prosecution to field offices for further investigation."
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By David Shepardson WASHINGTON, Nov 4 (Reuters) - The Federal Aviation Administration (FAA) said Thursday it has referred more than three dozen unruly passengers to the FBI for potential criminal prosecution amid a sharp rise in onboard incidents this year. On Oct. 8, President Joe Biden said he instructed the Justice Department to "deal" with the rising number of violent incidents onboard planes. In June, a group representing major U.S. airlines, such as American Airlines, Delta Air Lines DAL.N and United Airlines, as well as aviation unions, asked the Justice Department to prosecute violent air passengers.
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By David Shepardson WASHINGTON, Nov 4 (Reuters) - The Federal Aviation Administration (FAA) said Thursday it has referred more than three dozen unruly passengers to the FBI for potential criminal prosecution amid a sharp rise in onboard incidents this year. The FAA and Justice Department said they had established an information-sharing protocol for the FAA to refer unruly passenger cases to the FBI for review. FAA and Justice Department officials began meeting in August "to develop an efficient method for referring the most serious unruly-passenger cases for potential criminal prosecution," the agencies said, adding that "resulted in a process where the FAA regularly sends cases to the FBI, which forwards those that merit potential prosecution to field offices for further investigation."
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By David Shepardson WASHINGTON, Nov 4 (Reuters) - The Federal Aviation Administration (FAA) said Thursday it has referred more than three dozen unruly passengers to the FBI for potential criminal prosecution amid a sharp rise in onboard incidents this year. The FAA and Justice Department said they had established an information-sharing protocol for the FAA to refer unruly passenger cases to the FBI for review. The Justice Department and FBI "are committed to prioritizing the review of the cases referred by the FAA and initiating criminal prosecution where appropriate," the agencies said.
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4054.0
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2021-11-04 00:00:00 UTC
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U.S. airline disruptions cast a pall over holiday travel
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AAL
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https://www.nasdaq.com/articles/u.s.-airline-disruptions-cast-a-pall-over-holiday-travel-2021-11-04
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nan
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nan
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By Rajesh Kumar Singh
CHICAGO, Nov 4 (Reuters) - A spate of high-profile flight cancellations has put a spotlight on worker shortages at U.S. airlines, triggering warnings of new delays over the holiday period as airlines scramble for staff.
It is a dramatic shift for an industry that was grappling with surplus labor as coronavirus hammered air travel just a year ago, and is the latest evidence of a widening labor crunch.
As demand in the United States roars back, carriers are struggling to keep up. The challenge is especially pronounced at American Airlines AAL.O and Southwest Airlines LUV.N, which have been among the most active in adding seats to meet demand.
American canceled hundreds of flights last weekend, citing weather and staffing. It faced similar turmoil over the summer.
Southwest last month suffered an operational meltdown that resulted in around 2,000 cancellations and cost it $75 million. Similar factors in August forced Spirit Airlines Inc SAVE.N to cancel 2,800 flights.
Days ahead of the late-November Thanksgiving travel rush, airlines are scrambling to avoid a repeat.
Meanwhile, they face a surge in holiday bookings amid declining COVID-19 cases and rising vaccinations. Southwest said last month ticket sales for November and December were in line with 2019 pre-crisis levels.
Rising demand and labor shortages have left airlines more vulnerable to bad weather, which frequently mars end-year holiday travel. Analysts say that could mean more travel disruption.
"If there's any weather involved, you can expect flight cancellations," said Cowen and Co analyst Helane Becker.
SCRAMBLING FOR WORKERS
In a staff memo last week, American said it expects to have 4,000 new employees in the current quarter. It is also recalling nearly 1,800 flight attendants from long-term leave.
Southwest aims to hire 5,000 employees by year-end.
The rush to hire in a tight labor market risks driving up costs at a time when soaring jet fuel prices are squeezing profits.
Southwest is offering hiring referral bonuses to employees and has raised its minimum wage to $15 an hour. Even then, it says applicant rates are below pre-pandemic levels.
"The competition for the talent and for really good talent is even tighter," said Greg Muccio, director of talent acquisition at Southwest. "A lot of folks ... are looking for a lot of flexibility."
In the interim, both Southwest and Spirit have cut flights to prevent further outages.
Unions blame airlines for poor planning, which they say resulted in fatigue and frustration and made carriers susceptible to such disruptions.
American's pilot union said last month it planned to picket hubs to protest work rotas, fatigue and scarce accommodation.
"We're very concerned that management is stuffing the holiday turkey with uncertainty for the upcoming holiday travel period," said Dennis Tajer, spokesman for the Allied Pilots Association, which represents pilots at American.
To be sure, not all airlines are feeling the same pressures. United Airlines UAL.O and Delta Air Lines DAL.N have, thus far, largely avoided some of the turmoil.
Both are flying fewer flights than rivals. United also struck a deal to keep all its pilots flying last year in exchange for reduced work hours and lower pay.
United and Delta restored just over 70% of 2019 capacity in the quarter through September. In comparison, Southwest ramped up its capacity to more than 98% of 2019 levels and American flew 80% of its pre-pandemic capacity.
Industry experts say United and Delta have been partially insulated from the labor squeeze by networks more focused on international markets, where demand remains relatively weak.
SHORTAGES DESPITE BAILOUTS
But recent congestion has triggered broader questions over decisions by some airlines to slash headcount despite receiving $54 billion in federal aid to help cover payroll expenses.
Senator Maria Cantwell, a Democrat, sent letters in July to the heads of six airlines including American, Delta, Southwest and JetBlue Airways JBLU.O to demand explanations of worker shortages after billions in pandemic bailouts. Cantwell said at best each airline "poorly managed" the situation and at worst let taxpayers down.
While their responses to the letters have not been made public yet, airlines have said that the bailouts saved thousands of jobs, prevented bankruptcy and put them in a position to support the economy's recovery from the pandemic.
Industry experts say federal aid did help carriers retain workers, but problems started when the payroll program ran out of funds. With no clarity on funding and travel demand still weak, airlines asked workers to take unpaid time off or retire early.
"Had they retained 100% of their workers, they would have required more cash," said Cowen's Becker.
Airlines resumed hiring and bringing back pilots this spring as dipping COVID-19 cases brought passengers back.
U.S. air transportation employment in September was more than 12% below its pre-pandemic peak. By contrast, employment at restaurants and bars, struck equally hard by pandemic lockdowns, is just 7.6% below its peak before the COVID-19 outbreak.
Executives acknowledge a coronavirus-shattered airline industry is naturally more risk-averse, leading to tentativeness by some carriers when the recovery kicked in. Southwest, for example, didn't get moving with its hiring plans before July.
"We were kind of late to the game," said Southwest's Muccio.
(Reporting by Rajesh Kumar Singh, Editing by Tim Hepher, Anna Driver and Steve Orlofsky)
((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.
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The challenge is especially pronounced at American Airlines AAL.O and Southwest Airlines LUV.N, which have been among the most active in adding seats to meet demand. But recent congestion has triggered broader questions over decisions by some airlines to slash headcount despite receiving $54 billion in federal aid to help cover payroll expenses. Senator Maria Cantwell, a Democrat, sent letters in July to the heads of six airlines including American, Delta, Southwest and JetBlue Airways JBLU.O to demand explanations of worker shortages after billions in pandemic bailouts.
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The challenge is especially pronounced at American Airlines AAL.O and Southwest Airlines LUV.N, which have been among the most active in adding seats to meet demand. By Rajesh Kumar Singh CHICAGO, Nov 4 (Reuters) - A spate of high-profile flight cancellations has put a spotlight on worker shortages at U.S. airlines, triggering warnings of new delays over the holiday period as airlines scramble for staff. United Airlines UAL.O and Delta Air Lines DAL.N have, thus far, largely avoided some of the turmoil.
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The challenge is especially pronounced at American Airlines AAL.O and Southwest Airlines LUV.N, which have been among the most active in adding seats to meet demand. By Rajesh Kumar Singh CHICAGO, Nov 4 (Reuters) - A spate of high-profile flight cancellations has put a spotlight on worker shortages at U.S. airlines, triggering warnings of new delays over the holiday period as airlines scramble for staff. Senator Maria Cantwell, a Democrat, sent letters in July to the heads of six airlines including American, Delta, Southwest and JetBlue Airways JBLU.O to demand explanations of worker shortages after billions in pandemic bailouts.
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The challenge is especially pronounced at American Airlines AAL.O and Southwest Airlines LUV.N, which have been among the most active in adding seats to meet demand. Similar factors in August forced Spirit Airlines Inc SAVE.N to cancel 2,800 flights. Industry experts say United and Delta have been partially insulated from the labor squeeze by networks more focused on international markets, where demand remains relatively weak.
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4055.0
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2021-11-03 00:00:00 UTC
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Notable Wednesday Option Activity: CZR, AAL, ETSY
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AAL
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https://www.nasdaq.com/articles/notable-wednesday-option-activity%3A-czr-aal-etsy-2021-11-03
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nan
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nan
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Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in Caesars Entertainment Inc (Symbol: CZR), where a total volume of 13,576 contracts has been traded thus far today, a contract volume which is representative of approximately 1.4 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 89.1% of CZR's average daily trading volume over the past month, of 1.5 million shares. Particularly high volume was seen for the $130 strike call option expiring December 17, 2021, with 1,287 contracts trading so far today, representing approximately 128,700 underlying shares of CZR. Below is a chart showing CZR's trailing twelve month trading history, with the $130 strike highlighted in orange:
American Airlines Group Inc (Symbol: AAL) saw options trading volume of 223,687 contracts, representing approximately 22.4 million underlying shares or approximately 83% of AAL's average daily trading volume over the past month, of 26.9 million shares. Especially high volume was seen for the $21 strike call option expiring November 05, 2021, with 14,331 contracts trading so far today, representing approximately 1.4 million underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $21 strike highlighted in orange:
And Etsy Inc (Symbol: ETSY) options are showing a volume of 15,507 contracts thus far today. That number of contracts represents approximately 1.6 million underlying shares, working out to a sizeable 78.1% of ETSY's average daily trading volume over the past month, of 2.0 million shares. Particularly high volume was seen for the $225 strike put option expiring November 05, 2021, with 834 contracts trading so far today, representing approximately 83,400 underlying shares of ETSY. Below is a chart showing ETSY's trailing twelve month trading history, with the $225 strike highlighted in orange:
For the various different available expirations for CZR options, AAL options, or ETSY options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Especially high volume was seen for the $21 strike call option expiring November 05, 2021, with 14,331 contracts trading so far today, representing approximately 1.4 million underlying shares of AAL. Below is a chart showing CZR's trailing twelve month trading history, with the $130 strike highlighted in orange: American Airlines Group Inc (Symbol: AAL) saw options trading volume of 223,687 contracts, representing approximately 22.4 million underlying shares or approximately 83% of AAL's average daily trading volume over the past month, of 26.9 million shares. Below is a chart showing AAL's trailing twelve month trading history, with the $21 strike highlighted in orange: And Etsy Inc (Symbol: ETSY) options are showing a volume of 15,507 contracts thus far today.
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Below is a chart showing CZR's trailing twelve month trading history, with the $130 strike highlighted in orange: American Airlines Group Inc (Symbol: AAL) saw options trading volume of 223,687 contracts, representing approximately 22.4 million underlying shares or approximately 83% of AAL's average daily trading volume over the past month, of 26.9 million shares. Especially high volume was seen for the $21 strike call option expiring November 05, 2021, with 14,331 contracts trading so far today, representing approximately 1.4 million underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $21 strike highlighted in orange: And Etsy Inc (Symbol: ETSY) options are showing a volume of 15,507 contracts thus far today.
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Below is a chart showing CZR's trailing twelve month trading history, with the $130 strike highlighted in orange: American Airlines Group Inc (Symbol: AAL) saw options trading volume of 223,687 contracts, representing approximately 22.4 million underlying shares or approximately 83% of AAL's average daily trading volume over the past month, of 26.9 million shares. Especially high volume was seen for the $21 strike call option expiring November 05, 2021, with 14,331 contracts trading so far today, representing approximately 1.4 million underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $21 strike highlighted in orange: And Etsy Inc (Symbol: ETSY) options are showing a volume of 15,507 contracts thus far today.
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Below is a chart showing CZR's trailing twelve month trading history, with the $130 strike highlighted in orange: American Airlines Group Inc (Symbol: AAL) saw options trading volume of 223,687 contracts, representing approximately 22.4 million underlying shares or approximately 83% of AAL's average daily trading volume over the past month, of 26.9 million shares. Especially high volume was seen for the $21 strike call option expiring November 05, 2021, with 14,331 contracts trading so far today, representing approximately 1.4 million underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $21 strike highlighted in orange: And Etsy Inc (Symbol: ETSY) options are showing a volume of 15,507 contracts thus far today.
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4056.0
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2021-11-03 00:00:00 UTC
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Miner Anglo American names Duncan Wanblad as new CEO
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AAL
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https://www.nasdaq.com/articles/miner-anglo-american-names-duncan-wanblad-as-new-ceo-2021-11-03
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nan
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nan
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Adds background
Nov 3 (Reuters) - Anglo American Plc AAL.L named insider Duncan Wanblad as its new chief executive officer on Wednesday, in a widely expected move that will see current boss Mark Cutifani, who led the miner for nearly a decade, leave in April.
South Africa-born Wanblad, 54, emerged as one of the leading internal candidates to succeed Cutifani in 2019, when he was named as group director of strategy and business development. He was previously the CEO of Anglo American's base metals business from 2013-2019.
Cutifani, 63, will retire at the company's annual general meeting, scheduled for April 19, 2022, and Wanblad will take over the reins on the same date, Anglo American said.
Cutifani has won plaudits for his stewardship since taking the helm in 2013, overcoming concerns around his strategic ability when he opted to halt debt-reducing asset disposals after the 2015-16 commodity price slump weighed heavily on the stock.
Wanblad will have to deliver on his predecessor's roadmap to make Anglo American carbon neutral by 2040.
(Reporting by Yadarisa Shabong in Bengaluru and Clara Denina in London; Editing by Shounak Dasgupta)
((Yadarisa.Shabong@thomsonreuters.com; Twitter: https://twitter.com/Yadarisa; +919742735150))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Adds background Nov 3 (Reuters) - Anglo American Plc AAL.L named insider Duncan Wanblad as its new chief executive officer on Wednesday, in a widely expected move that will see current boss Mark Cutifani, who led the miner for nearly a decade, leave in April. South Africa-born Wanblad, 54, emerged as one of the leading internal candidates to succeed Cutifani in 2019, when he was named as group director of strategy and business development. Cutifani has won plaudits for his stewardship since taking the helm in 2013, overcoming concerns around his strategic ability when he opted to halt debt-reducing asset disposals after the 2015-16 commodity price slump weighed heavily on the stock.
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Adds background Nov 3 (Reuters) - Anglo American Plc AAL.L named insider Duncan Wanblad as its new chief executive officer on Wednesday, in a widely expected move that will see current boss Mark Cutifani, who led the miner for nearly a decade, leave in April. Cutifani, 63, will retire at the company's annual general meeting, scheduled for April 19, 2022, and Wanblad will take over the reins on the same date, Anglo American said. Wanblad will have to deliver on his predecessor's roadmap to make Anglo American carbon neutral by 2040.
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Adds background Nov 3 (Reuters) - Anglo American Plc AAL.L named insider Duncan Wanblad as its new chief executive officer on Wednesday, in a widely expected move that will see current boss Mark Cutifani, who led the miner for nearly a decade, leave in April. Cutifani, 63, will retire at the company's annual general meeting, scheduled for April 19, 2022, and Wanblad will take over the reins on the same date, Anglo American said. (Reporting by Yadarisa Shabong in Bengaluru and Clara Denina in London; Editing by Shounak Dasgupta) ((Yadarisa.Shabong@thomsonreuters.com; Twitter: https://twitter.com/Yadarisa; +919742735150)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Adds background Nov 3 (Reuters) - Anglo American Plc AAL.L named insider Duncan Wanblad as its new chief executive officer on Wednesday, in a widely expected move that will see current boss Mark Cutifani, who led the miner for nearly a decade, leave in April. South Africa-born Wanblad, 54, emerged as one of the leading internal candidates to succeed Cutifani in 2019, when he was named as group director of strategy and business development. He was previously the CEO of Anglo American's base metals business from 2013-2019.
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4057.0
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2021-11-03 00:00:00 UTC
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Miner Anglo American says Cutifani to step down as CEO
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AAL
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https://www.nasdaq.com/articles/miner-anglo-american-says-cutifani-to-step-down-as-ceo-2021-11-03
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nan
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nan
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Nov 3 (Reuters) - Mining company Anglo American AAL.L on Wednesday named Duncan Wanblad as its new chief executive officer to succeed Mark Cutifani, who will step down in April after nine years at the company's helm.
(Reporting by Yadarisa Shabong in Bengaluru; Editing by Shounak Dasgupta)
((Yadarisa.Shabong@thomsonreuters.com; Twitter: https://twitter.com/Yadarisa; +919742735150))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Nov 3 (Reuters) - Mining company Anglo American AAL.L on Wednesday named Duncan Wanblad as its new chief executive officer to succeed Mark Cutifani, who will step down in April after nine years at the company's helm. (Reporting by Yadarisa Shabong in Bengaluru; Editing by Shounak Dasgupta) ((Yadarisa.Shabong@thomsonreuters.com; Twitter: https://twitter.com/Yadarisa; +919742735150)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Nov 3 (Reuters) - Mining company Anglo American AAL.L on Wednesday named Duncan Wanblad as its new chief executive officer to succeed Mark Cutifani, who will step down in April after nine years at the company's helm. (Reporting by Yadarisa Shabong in Bengaluru; Editing by Shounak Dasgupta) ((Yadarisa.Shabong@thomsonreuters.com; Twitter: https://twitter.com/Yadarisa; +919742735150)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Nov 3 (Reuters) - Mining company Anglo American AAL.L on Wednesday named Duncan Wanblad as its new chief executive officer to succeed Mark Cutifani, who will step down in April after nine years at the company's helm. (Reporting by Yadarisa Shabong in Bengaluru; Editing by Shounak Dasgupta) ((Yadarisa.Shabong@thomsonreuters.com; Twitter: https://twitter.com/Yadarisa; +919742735150)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Nov 3 (Reuters) - Mining company Anglo American AAL.L on Wednesday named Duncan Wanblad as its new chief executive officer to succeed Mark Cutifani, who will step down in April after nine years at the company's helm. (Reporting by Yadarisa Shabong in Bengaluru; Editing by Shounak Dasgupta) ((Yadarisa.Shabong@thomsonreuters.com; Twitter: https://twitter.com/Yadarisa; +919742735150)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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4058.0
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2021-11-02 00:00:00 UTC
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INSIGHT-From Boeing to Mercedes, a U.S. worker rebellion swells over vaccine mandates
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AAL
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https://www.nasdaq.com/articles/insight-from-boeing-to-mercedes-a-u.s.-worker-rebellion-swells-over-vaccine-mandates-0
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nan
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nan
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By Tina Bellon and Eric M. Johnson
AUSTIN/SEATTLE, Nov 2 (Reuters) - In Wichita, Kansas, nearly half of the roughly 10,000 employees at aircraft companies Textron Inc TXT.N and Spirit AeroSystems SPR.N remain unvaccinated against COVID-19, risking their jobs in defiance of a federal mandate, according to a union official.
"We're going to lose a lot of employees over this," said Cornell Beard, head of the local Machinists union district. Many workers did not object to the vaccines as such, he said, but were staunchly opposed to what they see as government meddling in personal health decisions.
The union district has hired a Texas-based lawyer to assist employees and prepare potential lawsuits against the companies should requests for medical or religious exemptions to vaccination be denied.
A life-long Democrat, Beard said he would no longer vote for the party. "They'll never get another vote from me and I'm telling the workers here the same thing."
The clock is ticking for companies that want to continue gaining federal contracts under an executive order by Democratic President Joe Biden, which requires all contractor employees be fully vaccinated against COVID-19 by Dec. 8.
That means federal contract workers need to have received their last COVID-19 shot at least two weeks before the deadline to gain maximum protection, according to U.S. government guidance.
With a three-week gap between shots of the Pfizer PFE.N/BioNTech BNTX.O vaccine, workers must get the first jab by Wednesday. If the government holds fast to its deadline, it is already too late to choose Moderna's MRNA.O vaccine, which is given in two doses four weeks apart. Workers could opt to get Johnson & Johnson's JNJ.N single-shot vaccine until Nov. 24 to meet the deadline.
Vaccines remain by far the most effective way to prevent COVID-19 hospitalizations and deaths, particularly faced with the extremely contagious Delta variant of the virus that can cause infections even among those fully vaccinated.
Despite vocal opposition from some, vaccine mandates have been effective at shrinking the rates of the unvaccinated and convincing the reluctant to roll up their sleeves.
Several big employers such as Procter & Gamble PG.N, 3M MMM.N and airlines including American Airlines AAL.O and JetBlue JBLU.O have imposed mandates. In some industries, including among food workers, unions have supported vaccine requirements.
But the mandate has stirred protests from workers in industries across the country, as well as from Republican state officials.
Opposition to the mandate could potentially lead to thousands of U.S. workers losing their jobs and imperil an already sluggish economic recovery, union leaders, workers and company executives said.
More legal clashes are likely over how companies decide requests for vaccination exemptions.
For the companies, time is getting tight, though the Biden administration has signaled federal contractors will not have to immediately lay off unvaccinated workers who miss the Dec. 8 deadline.
Under government guidance published on Monday, companies will have flexibility over how to implement the mandate, which may allow them to avoid mass firings.
"A covered contractor should determine the appropriate means of enforcement with respect to its employee," the guidance said.
For Boeing Co BA.N in the United States, more than 7,000 workers have applied for religious exemptions and around 1,000 are seeking medical exemptions, people familiar with the matter told Reuters. That amounts to some 6% of the planemaker's roughly 125,000 U.S employees.
'ILLEGAL, IMMORAL AND IMPRACTICAL'
At a rally last week outside Boeing property in Auburn, south of Seattle, many of the three dozen workers gathered in driving rain said they would rather be escorted off Boeing property on Dec. 8 than take a vaccine. Others said they would pursue early retirement.
"The mandate is illegal, immoral and impractical," said one veteran Boeing program analyst who attended the rally. "We are standing together against a company and government trampling on our rights."
Many legal experts have said vaccine mandates in the interest of public health are legal. The U.S. Supreme Court has rejected several challenges to mandates, with the high court last week turning away a healthcare worker who sought a religious exemption to a COVID-19 vaccine mandate.
The rebellion has put Boeing executives in a bind. The company could lose skilled staff, but must comply with a presidential order.
A Boeing spokesperson said the company was committed to maintaining a safe working environment for its employees.
The order's provision for religious and medical exemptions is causing more tension.
Two Textron workers who requested religious exemptions told Reuters the company's human resources representatives quizzed them on the name of their church leaders and asked detailed questions about their faith.
Textron declined to respond to questions, but in a statement said it was obligated to comply with Biden's order and was taking steps to do so.
"Employees who are unable to receive the COVID-19 vaccination due to a medical condition or sincerely held religious belief are being provided an opportunity to request an accommodation from this requirement," Textron said.
Spirit AeroSystems did not respond to a request for comment.
Raytheon Technologies' RTX.N CEO Greg Hayes last week warned the U.S. defense firm will lose "several thousand" employees because of the mandate.
A group representing FedEx Corp FDX.N, United Parcel Service Inc UPS.N and other cargo carriers said it would be virtually impossible to have all their workforces vaccinated by the deadline.
Some companies have imposed vaccine mandates even absent immediate government regulation.
Mercedes-Benz USA, the U.S. unit of German carmaker Daimler AG DAIGn.DE which is not a U.S. government contractor, told employees in an October email seen by Reuters that proof of vaccination against COVID-19 would become a condition of employment beginning Jan. 4.
The carmaker said it implemented the move in anticipation of a separate U.S. government vaccine mandate that would apply to businesses with at least 100 employees, affecting some 80 million workers nationwide.
Less than half of the company's workers at U.S. import processing centers are vaccinated and many refuse to get a shot, according to a source familiar with the matter.
Mercedes USA in a statement said it had given employees 90-day notice to fulfill the requirement, adding that two thirds of its U.S. employees - not including factory workers in Alabama - have provided proof of vaccination to date.
"We expect that the vast majority of our employees will provide proof of vaccination before the deadline," the company said.
U.S. to publish rules on private-sector COVID-19 vaccinations, testing in days
(Reporting by Tina Bellon in Austin, Texas and Eric M. Johnson in Seattle, Washington; Editing by Joe White and Bill Berkrot)
((Tina.Bellon@thomsonreuters.com; +1 646 573 5029; Reuters Messaging: tina.bellon.thomsonreuters@reuters.net; Twitter @TinaBellon))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Several big employers such as Procter & Gamble PG.N, 3M MMM.N and airlines including American Airlines AAL.O and JetBlue JBLU.O have imposed mandates. By Tina Bellon and Eric M. Johnson AUSTIN/SEATTLE, Nov 2 (Reuters) - In Wichita, Kansas, nearly half of the roughly 10,000 employees at aircraft companies Textron Inc TXT.N and Spirit AeroSystems SPR.N remain unvaccinated against COVID-19, risking their jobs in defiance of a federal mandate, according to a union official. Two Textron workers who requested religious exemptions told Reuters the company's human resources representatives quizzed them on the name of their church leaders and asked detailed questions about their faith.
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Several big employers such as Procter & Gamble PG.N, 3M MMM.N and airlines including American Airlines AAL.O and JetBlue JBLU.O have imposed mandates. By Tina Bellon and Eric M. Johnson AUSTIN/SEATTLE, Nov 2 (Reuters) - In Wichita, Kansas, nearly half of the roughly 10,000 employees at aircraft companies Textron Inc TXT.N and Spirit AeroSystems SPR.N remain unvaccinated against COVID-19, risking their jobs in defiance of a federal mandate, according to a union official. The clock is ticking for companies that want to continue gaining federal contracts under an executive order by Democratic President Joe Biden, which requires all contractor employees be fully vaccinated against COVID-19 by Dec. 8.
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Several big employers such as Procter & Gamble PG.N, 3M MMM.N and airlines including American Airlines AAL.O and JetBlue JBLU.O have imposed mandates. The U.S. Supreme Court has rejected several challenges to mandates, with the high court last week turning away a healthcare worker who sought a religious exemption to a COVID-19 vaccine mandate. The carmaker said it implemented the move in anticipation of a separate U.S. government vaccine mandate that would apply to businesses with at least 100 employees, affecting some 80 million workers nationwide.
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Several big employers such as Procter & Gamble PG.N, 3M MMM.N and airlines including American Airlines AAL.O and JetBlue JBLU.O have imposed mandates. By Tina Bellon and Eric M. Johnson AUSTIN/SEATTLE, Nov 2 (Reuters) - In Wichita, Kansas, nearly half of the roughly 10,000 employees at aircraft companies Textron Inc TXT.N and Spirit AeroSystems SPR.N remain unvaccinated against COVID-19, risking their jobs in defiance of a federal mandate, according to a union official. That means federal contract workers need to have received their last COVID-19 shot at least two weeks before the deadline to gain maximum protection, according to U.S. government guidance.
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2021-11-02 00:00:00 UTC
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FOCUS-Airlines reopen lounges with new perks, more walk-ins from economy
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https://www.nasdaq.com/articles/focus-airlines-reopen-lounges-with-new-perks-more-walk-ins-from-economy-2021-11-02
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By Allison Lampert
MONTREAL, Nov 2 (Reuters) - Airlines are reopening airport lounges with higher-end service to lure back premium travelers after the pandemic, while increasingly opening the VIP experience to tourists - for a fee.
Premium travel plummeted during the COVID-19 crisis, depriving airlines of higher-margin fares. But with traffic rebounding in certain regions and U.S.-bound travel set to reopen on Nov 8, lounges are a crucial weapon in airlines' post-crisis strategies for retaining their more profitable clients.
United Airlines UAL.O opened its first Polaris lounge at Washington Dulles on Oct 21 and announced plans last Thursday to reopen existing lounges in New York, Chicago and Houston by end-year, with the rest set to follow in early 2022.
Air France AIRF.PA has inaugurated a 3,000-square-metre temple to French design in one of its main terminals at Paris Charles de Gaulle. Dubai's Emirates EMIRA.UL and Air Canada AC.TO both plan upgrades to lounge dining and service.
"A lot of the narrative around 2022 is really going to be around that food program, how we serve our customers and elevating that aspect of the experience," said Mats Winter, director of product for Canada's largest carrier.
Air Canada wants a "competitive product" for its business clientele but also for leisure travelers who are making up a growing part of premium-fare purchases, he said.
"The mix has changed, but our commitment to making sure we have a great premium product hasn't. We are obviously keeping a very close eye on the traffic we are seeing in our lounges," Winter added.
NEW REVENUES
Designed as an oasis for premium travelers, lounges could attract more passengers looking to avoid crowds during COVID, said Michael Di Corpo, managing director of Montreal-based firm IEG, which sells software for managing airport lounges.
Passengers globally are contending with longer lines due to requirements like proof of vaccination, while many face longer layovers since ailing airlines now offer fewer direct flights.
"We're seeing more of the 'paying their way' as a way of generating revenues, assuming they're not at capacity," Di Corpo said, referring to the purchase of daily lounge access.
Airlines contacted by Reuters don't break out revenues from lounge services.
While some airlines have previously sold lounge access to passengers from the back of the plane, pressure to find new revenues in the wake of the industry's worst crisis has grown.
Qatar Airways for one, recently launched a less expensive Business Lite fare, where lounge access costs extra.
American Airlines AAL.O, which reopened the first of its Flagship Lounges in September to premium classes on long-haul flights, made paid access available for the first time.
The airline is especially targeting people traveling for occasions like weddings and reunions, a spokeswoman said.
But there are limits to the democratization of lounges, which can represent investments of millions of dollars.
The last thing executives say they can afford is to crowd out corporate clientele or well-off individuals who drive profits on routes like the Atlantic, with the U.S. lifting restrictions Nov 8 for vaccinated foreigners.
At American, the $150 cost of a day pass to Flagship doesn't give economy passengers access to its most elite service, a private restaurant within the lounge. It does include food with a different menu and space.
United said Polaris lounges would remain premium class only.
Air Canada decided last November to open three of its Maple Leaf lounges to paying walk-in economy passengers and travelers from other airlines on a trial basis to use spare capacity during COVID-19. It has since ended the practice in Vancouver.
"We don't want this to eventually drive capacity concerns, for example, for our premium customers," Winter said.
(Reporting By Allison Lampert in Montreal; Additional reporting by Alexander Cornwell in Dubai; Editing by Tim Hepher and Edward Tobin)
((Allison.Lampert@thomsonreuters.com; 514-796-4212; Reuters Messaging: allison.lampert.reuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines AAL.O, which reopened the first of its Flagship Lounges in September to premium classes on long-haul flights, made paid access available for the first time. By Allison Lampert MONTREAL, Nov 2 (Reuters) - Airlines are reopening airport lounges with higher-end service to lure back premium travelers after the pandemic, while increasingly opening the VIP experience to tourists - for a fee. The last thing executives say they can afford is to crowd out corporate clientele or well-off individuals who drive profits on routes like the Atlantic, with the U.S. lifting restrictions Nov 8 for vaccinated foreigners.
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American Airlines AAL.O, which reopened the first of its Flagship Lounges in September to premium classes on long-haul flights, made paid access available for the first time. By Allison Lampert MONTREAL, Nov 2 (Reuters) - Airlines are reopening airport lounges with higher-end service to lure back premium travelers after the pandemic, while increasingly opening the VIP experience to tourists - for a fee. But with traffic rebounding in certain regions and U.S.-bound travel set to reopen on Nov 8, lounges are a crucial weapon in airlines' post-crisis strategies for retaining their more profitable clients.
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American Airlines AAL.O, which reopened the first of its Flagship Lounges in September to premium classes on long-haul flights, made paid access available for the first time. By Allison Lampert MONTREAL, Nov 2 (Reuters) - Airlines are reopening airport lounges with higher-end service to lure back premium travelers after the pandemic, while increasingly opening the VIP experience to tourists - for a fee. United Airlines UAL.O opened its first Polaris lounge at Washington Dulles on Oct 21 and announced plans last Thursday to reopen existing lounges in New York, Chicago and Houston by end-year, with the rest set to follow in early 2022.
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American Airlines AAL.O, which reopened the first of its Flagship Lounges in September to premium classes on long-haul flights, made paid access available for the first time. By Allison Lampert MONTREAL, Nov 2 (Reuters) - Airlines are reopening airport lounges with higher-end service to lure back premium travelers after the pandemic, while increasingly opening the VIP experience to tourists - for a fee. Airlines contacted by Reuters don't break out revenues from lounge services.
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2021-11-02 00:00:00 UTC
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Miners knock European stocks lower ahead of key central bank decisions
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https://www.nasdaq.com/articles/miners-knock-european-stocks-lower-ahead-of-key-central-bank-decisions-2021-11-02-0
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By Anisha Sircar
Nov 2 (Reuters) - European shares eased from record levels on Tuesday as traders eyed upcoming central bank meetings for clues on tapering and rate decisions, while a plunge in iron ore prices hurt miners.
The pan-European STOXX 600 index .STOXX slipped 0.1%, while Asian stocks were mixed on jitters ahead of U.S. Federal Reserve and Bank of England meetings this week where the central banks could scale back pandemic-era stimulus.
Mining stocks .SXPP led losses, down 3% on a fall in the iron ore market and lower copper prices. Anglo American Plc AAL.L and ArcelorMittal MT.LU were among the top decliners. MET/L
The STOXX 600 closed at a record high on Monday on the back of strong earnings and a jump in bank stocks fuelled by expectations of a rate hike by the European Central Bank next year.
"The environment of higher inflation and higher yields favours certain corporates, but it's uncertain for others, which leaves you in a very volatile market," said Bert Colijn, senior economist at ING.
"But the underlying moves are positive, with better-than-expected GDP figures and a quicker-than-expected recovery."
A survey showed euro zone manufacturing activity remained strong in October, but supply chain bottlenecks and logistical problems sent input costs soaring and curtailed growth.
About half of the STOXX 600 companies have reported quarterly earnings so far and 64% have topped profit estimates, according to Refinitiv IBES data. In a typical quarter, 52% beat estimates.
Meal-kit delivery firm HelloFresh HFGG.DE surged 13.8% after raising its sales forecast for 2021, helping Germany's DAX .GDAXI stay afloat.
German dialysis specialist Fresenius Medical Group FMEG.DE also gained 3.9% after reporting an earnings beat and firming up its full-year outlook.
Gains in healthcare .SXDP and technology .SX8P stocks limited overall losses in markets.
Weighing on UK's blue-chip FTSE 100, the world's largest online betting group Flutter Entertainment FLTRF.I dropped 7.1% after trimming its full-year forecast due to unfavourable sports results and a temporary closure of its Dutch operations.
London-based Standard Chartered STAN.L slumped 8.3% despite reporting a doubling in profit for the third quarter. The bank said it had $4.2 billion in exposure to China's real estate sector, where China Evergrande Group 3333.HK has been grappling with an enormous debt pile.
(Reporting by Anisha Sircar in Bengaluru; Editing by Shounak Dasgupta)
((Anisha.Sircar@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.
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Anglo American Plc AAL.L and ArcelorMittal MT.LU were among the top decliners. By Anisha Sircar Nov 2 (Reuters) - European shares eased from record levels on Tuesday as traders eyed upcoming central bank meetings for clues on tapering and rate decisions, while a plunge in iron ore prices hurt miners. A survey showed euro zone manufacturing activity remained strong in October, but supply chain bottlenecks and logistical problems sent input costs soaring and curtailed growth.
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Anglo American Plc AAL.L and ArcelorMittal MT.LU were among the top decliners. By Anisha Sircar Nov 2 (Reuters) - European shares eased from record levels on Tuesday as traders eyed upcoming central bank meetings for clues on tapering and rate decisions, while a plunge in iron ore prices hurt miners. About half of the STOXX 600 companies have reported quarterly earnings so far and 64% have topped profit estimates, according to Refinitiv IBES data.
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Anglo American Plc AAL.L and ArcelorMittal MT.LU were among the top decliners. By Anisha Sircar Nov 2 (Reuters) - European shares eased from record levels on Tuesday as traders eyed upcoming central bank meetings for clues on tapering and rate decisions, while a plunge in iron ore prices hurt miners. The pan-European STOXX 600 index .STOXX slipped 0.1%, while Asian stocks were mixed on jitters ahead of U.S. Federal Reserve and Bank of England meetings this week where the central banks could scale back pandemic-era stimulus.
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Anglo American Plc AAL.L and ArcelorMittal MT.LU were among the top decliners. Mining stocks .SXPP led losses, down 3% on a fall in the iron ore market and lower copper prices. MET/L The STOXX 600 closed at a record high on Monday on the back of strong earnings and a jump in bank stocks fuelled by expectations of a rate hike by the European Central Bank next year.
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4061.0
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2021-11-02 00:00:00 UTC
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Air Travel Demand To Push Boeing Stock Higher?
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https://www.nasdaq.com/articles/air-travel-demand-to-push-boeing-stock-higher-2021-11-02
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The shares of Boeing (NYSE: BA) currently trade 35% below pre-Covid levels – losing almost $67 billion in market capitalization due to MAX groundings and the pandemic. Interestingly, the company reported $18 billion and $3.8 billion of operating cash burn last year and in H1 2021, respectively. Moreover, the high cash burn figures have largely been due to the build-up of inventories and other working capital changes. While weak near-term demand due to the pandemic is likely to weigh on the company’s financials, Trefis believes that the 4% annual growth in global passenger traffic in the next two decades is likely to assist shareholder returns. We highlight the historical trends in revenues, earnings, and stock price in an interactive dashboard analysis on Boeing Valuation.
Segment-wise long-term trends
Before the pandemic and MAX’s grounding, Boeing’s Commercial Airplanes, Defense, and Global Services segments contributed 57%, 26%, and 17% of total revenues, respectively. For the five-year period from 2013 to 2018, the company’s top line observed a CAGR of 3% – fairly in-line with the long-term trends in global passenger traffic. Our article, Are Long-Term Trends In Favor Of Boeing Stock?, highlights the key aspects of Boeing’s Commercial Market Outlook. Moreover, the company’s Defense and Global Services segments have also been expanding at a low single-digit rate in the past few years. Coming to profitability, the Commercial Airplanes, Defense, and Global Services segments’ operating profit margin was 14%, 6.5%, and 15% in 2018, respectively. Considering the high revenue contribution and profitability of the Commercial Airplanes segment, recovery in air travel demand is key to long-term gains in Boeing stock.
How did Boeing perform in H1 2021?
In H1 2021, Boeing reported $32 billion of revenues, 12% growth over the prior-year quarter – assisted by improving commercial airplane deliveries. The company generated $940 million of operating income and burned $3.9 billion of cash from operations – mainly from working capital changes. Given the positive trends in air travel demand and FAA’s approval of MAX aircraft, the company expects MAX’s production to reach 31 units per month by early-2022 from 19 per month at present. However, the inventories stand high at $82 billion – weighing on the balance sheet until 450 planes in the warehouse get delivered. (related: Pick Boeing Stock Over Northrop Grumman For Near-Term Gains)
What if you’re looking for a more balanced portfolio instead? Here’s a high-quality portfolio that’s beaten the market consistently since 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.
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While weak near-term demand due to the pandemic is likely to weigh on the company’s financials, Trefis believes that the 4% annual growth in global passenger traffic in the next two decades is likely to assist shareholder returns. Segment-wise long-term trends Before the pandemic and MAX’s grounding, Boeing’s Commercial Airplanes, Defense, and Global Services segments contributed 57%, 26%, and 17% of total revenues, respectively. Considering the high revenue contribution and profitability of the Commercial Airplanes segment, recovery in air travel demand is key to long-term gains in Boeing stock.
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Segment-wise long-term trends Before the pandemic and MAX’s grounding, Boeing’s Commercial Airplanes, Defense, and Global Services segments contributed 57%, 26%, and 17% of total revenues, respectively. Coming to profitability, the Commercial Airplanes, Defense, and Global Services segments’ operating profit margin was 14%, 6.5%, and 15% in 2018, respectively. Considering the high revenue contribution and profitability of the Commercial Airplanes segment, recovery in air travel demand is key to long-term gains in Boeing stock.
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Segment-wise long-term trends Before the pandemic and MAX’s grounding, Boeing’s Commercial Airplanes, Defense, and Global Services segments contributed 57%, 26%, and 17% of total revenues, respectively. Our article, Are Long-Term Trends In Favor Of Boeing Stock?, highlights the key aspects of Boeing’s Commercial Market Outlook. Considering the high revenue contribution and profitability of the Commercial Airplanes segment, recovery in air travel demand is key to long-term gains in Boeing stock.
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Moreover, the high cash burn figures have largely been due to the build-up of inventories and other working capital changes. Segment-wise long-term trends Before the pandemic and MAX’s grounding, Boeing’s Commercial Airplanes, Defense, and Global Services segments contributed 57%, 26%, and 17% of total revenues, respectively. Considering the high revenue contribution and profitability of the Commercial Airplanes segment, recovery in air travel demand is key to long-term gains in Boeing stock.
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4062.0
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2021-11-01 00:00:00 UTC
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U.S. to publish rules on private-sector COVID-19 vaccinations, testing in days
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https://www.nasdaq.com/articles/u.s.-to-publish-rules-on-private-sector-covid-19-vaccinations-testing-in-days-2021-11-01-0
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By David Shepardson and Nandita Bose
WASHINGTON, Nov 1 (Reuters) - The Biden administration said on Monday that a planned rule requiring private-sector employers with 100 or more employees to mandate COVID-19 vaccines or regular testing will be published in the coming days.
The Labor Department said the White House Office of Management and Budget had completed its regulatory review of the rule known as an emergency temporary standard (ETS). The White House said in September the rule would cover more than 80 million private-sector employees.
When the administration will mandate compliance with the new rules is not yet known. Many industries have called for the mandates to be delayed until after the holiday season.
The ETS process was last used in June to institute healthcare workplace rules to stop the spread of the coronavirus. Before that, The Occupational Safety and Health Administration's (OSHA) last ETS was 38 years ago and the government has had a mixed record of success using the fast-track procedure.
The ETS has only been used 10 times in OSHA's 50-year history. Courts have invalidated or halted four of those rules and partially blocked one, according to the Congressional Research Service.
Separately, the White House issued new guidance on Monday to federal contractors after it said last week it was giving them new "flexibility" to meet a Dec. 8 deadline for employees to be vaccinated.
White House COVID-19 coordinator Jeff Zients said he does not expect any disruptions to the U.S. economy or holiday travel as a result of the mandate.
"We’re creating flexibility within the system. There is not a cliff here," Zients said last week.
The mandate covers millions of federal contractor employees and companies including Boeing BA.N, American Airlines AAL.O, Union Pacific UNP.N and IBM IBM.N have said they will comply with the contractor mandate.
The new guidance said contractors "should determine the appropriate means of enforcement" for employees refusing vaccination who do not have a pending request for accommodation, such as a religious or medical exemption.
The White House said contractors can follow the federal model to address unvaccinated employees that "encourages compliance, including through a limited period of counseling and education, followed by additional disciplinary measures if necessary. Removal occurs only after continued noncompliance."
Companies can also use "its usual processes for enforcement of workplace policies," it said
The White House said separately that federal employees "should not be placed on administrative leave while the agency is pursuing an adverse action for refusal to be vaccinated."
Federal contractor employees not complying must follow workplace safety protocols for unvaccinated people. Federal agencies can deny entry to unvaccinated contractors to federal workplaces.
(Reporting by Nandita Bose and David Shepardson; Editing by Chizu Nomiyama and Bill Berkrot)
((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.
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The mandate covers millions of federal contractor employees and companies including Boeing BA.N, American Airlines AAL.O, Union Pacific UNP.N and IBM IBM.N have said they will comply with the contractor mandate. By David Shepardson and Nandita Bose WASHINGTON, Nov 1 (Reuters) - The Biden administration said on Monday that a planned rule requiring private-sector employers with 100 or more employees to mandate COVID-19 vaccines or regular testing will be published in the coming days. Separately, the White House issued new guidance on Monday to federal contractors after it said last week it was giving them new "flexibility" to meet a Dec. 8 deadline for employees to be vaccinated.
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The mandate covers millions of federal contractor employees and companies including Boeing BA.N, American Airlines AAL.O, Union Pacific UNP.N and IBM IBM.N have said they will comply with the contractor mandate. The White House said contractors can follow the federal model to address unvaccinated employees that "encourages compliance, including through a limited period of counseling and education, followed by additional disciplinary measures if necessary. Federal contractor employees not complying must follow workplace safety protocols for unvaccinated people.
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The mandate covers millions of federal contractor employees and companies including Boeing BA.N, American Airlines AAL.O, Union Pacific UNP.N and IBM IBM.N have said they will comply with the contractor mandate. Separately, the White House issued new guidance on Monday to federal contractors after it said last week it was giving them new "flexibility" to meet a Dec. 8 deadline for employees to be vaccinated. Companies can also use "its usual processes for enforcement of workplace policies," it said The White House said separately that federal employees "should not be placed on administrative leave while the agency is pursuing an adverse action for refusal to be vaccinated."
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The mandate covers millions of federal contractor employees and companies including Boeing BA.N, American Airlines AAL.O, Union Pacific UNP.N and IBM IBM.N have said they will comply with the contractor mandate. Separately, the White House issued new guidance on Monday to federal contractors after it said last week it was giving them new "flexibility" to meet a Dec. 8 deadline for employees to be vaccinated. Companies can also use "its usual processes for enforcement of workplace policies," it said The White House said separately that federal employees "should not be placed on administrative leave while the agency is pursuing an adverse action for refusal to be vaccinated."
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4063.0
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2021-11-01 00:00:00 UTC
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American Airlines cancels more flights; total tops 2,300
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https://www.nasdaq.com/articles/american-airlines-cancels-more-flights-total-tops-2300-2021-11-01
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By Abhijith Ganapavaram
Nov 1 (Reuters) - Weather and staffing-led turbulence stretched into a fourth day for American Airlines AAL.O, with the top U.S. carrier cancelling more flights on Monday to push the total number to nearly 2,300.
The airline said it canceled 340 flights, or 6% of its total planned flights on Monday, as of 11 a.m. ET.
Staffing shortages have hit American Airlines, Southwest Airlines Co LUV.N and Spirit Airlines Inc SAVE.N in particular, as they ramp up flights ahead of the holiday season but face problems finding enough pilots and flight attendants.
"Flight Attendant staffing at American is strained and reflects what is happening across the industry as we continue to deal with pandemic-related issues," flight attendants' union APFA said.
American's pilot union said last month they planned to picket the carrier's major hubs to protest work schedule, fatigue, and a lack of adequate accommodation this summer.
The cancellations are another setback to the Texas-based company, which is already reeling from rising fuel and labor costs impacting the industry as the U.S. prepares to open borders to fully vaccinated travelers.
"The airline had particular weather issues that then spiraled into rippled cancellations and were compounded by an inability to fill out schedules from their labor reserves," UBS analyst Myles Walton said.
Severe winds at the Dallas/Fort Worth International Airport reduced American's arrival capacity by more than half, with the inclement weather also impacting staffing.
The company, however, hoped some of that impact could be mitigated with nearly 1,800 flight attendants returning from leave starting Monday.
"We expect considerable improvement beginning today with some residual impact from the weekend," company spokeswoman Sarah Jantz said in a statement. American's shares recovered losses to trade up 1%.
Meanwhile, rival airlines seemed to have fared better.
Delta Air Lines IncDAL.Nsaid on Monday it has not experienced any weather-related cancellations so far, while United AirlinesUAL.Osaid there were no "widespread cancellations".
(Reporting by Abhijith Ganapavaram in Bengaluru; Editing by Arpan Varghese)
((Abhijith.G@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.
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By Abhijith Ganapavaram Nov 1 (Reuters) - Weather and staffing-led turbulence stretched into a fourth day for American Airlines AAL.O, with the top U.S. carrier cancelling more flights on Monday to push the total number to nearly 2,300. American's pilot union said last month they planned to picket the carrier's major hubs to protest work schedule, fatigue, and a lack of adequate accommodation this summer. The cancellations are another setback to the Texas-based company, which is already reeling from rising fuel and labor costs impacting the industry as the U.S. prepares to open borders to fully vaccinated travelers.
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By Abhijith Ganapavaram Nov 1 (Reuters) - Weather and staffing-led turbulence stretched into a fourth day for American Airlines AAL.O, with the top U.S. carrier cancelling more flights on Monday to push the total number to nearly 2,300. The airline said it canceled 340 flights, or 6% of its total planned flights on Monday, as of 11 a.m. "Flight Attendant staffing at American is strained and reflects what is happening across the industry as we continue to deal with pandemic-related issues," flight attendants' union APFA said.
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By Abhijith Ganapavaram Nov 1 (Reuters) - Weather and staffing-led turbulence stretched into a fourth day for American Airlines AAL.O, with the top U.S. carrier cancelling more flights on Monday to push the total number to nearly 2,300. Staffing shortages have hit American Airlines, Southwest Airlines Co LUV.N and Spirit Airlines Inc SAVE.N in particular, as they ramp up flights ahead of the holiday season but face problems finding enough pilots and flight attendants. "Flight Attendant staffing at American is strained and reflects what is happening across the industry as we continue to deal with pandemic-related issues," flight attendants' union APFA said.
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By Abhijith Ganapavaram Nov 1 (Reuters) - Weather and staffing-led turbulence stretched into a fourth day for American Airlines AAL.O, with the top U.S. carrier cancelling more flights on Monday to push the total number to nearly 2,300. The airline said it canceled 340 flights, or 6% of its total planned flights on Monday, as of 11 a.m. Staffing shortages have hit American Airlines, Southwest Airlines Co LUV.N and Spirit Airlines Inc SAVE.N in particular, as they ramp up flights ahead of the holiday season but face problems finding enough pilots and flight attendants.
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4064.0
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2021-11-01 00:00:00 UTC
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American Airlines cancels more flights; total now over 2,000
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https://www.nasdaq.com/articles/american-airlines-cancels-more-flights-total-now-over-2000-2021-11-01
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Nov 1 (Reuters) - American Airlines Inc AAL.O said it canceled 262 additional flights on Monday, pushing the total number of cancellations since Friday to 2,211, as it grapples with staffing shortages and unfavorable weather.
The U.S. carrier said Monday's cancellations were about 5% of its total flights planned, as of 7.30 am ET.
Severe winds at the Dallas/Fort Worth International Airport in Texas have reduced American's arrival capacity by more than half, with the inclement weather also impacting the airline's staffing, American had said over the weekend.
The company, however, hoped some of that impact could be mitigated with nearly 1,800 flight attendants returning from leave starting Monday.
"We expect considerable improvement beginning today with some residual impact from the weekend," company spokeswoman Sarah Jantz said in a statement.
Unions representing American Airlines pilots and flight attendants did not immediately respond to Reuters' requests for comment.
Staffing shortages have hit American Airlines, Southwest Airlines Co LUV.N and Spirit Airlines Inc SAVE.N in particular, as they ramp up flights ahead of the holiday season but face problems finding enough pilots and flight attendants.
(Reporting by Abhijith Ganapavaram in Bengaluru; Editing by Arpan Varghese)
((Abhijith.G@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.
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Nov 1 (Reuters) - American Airlines Inc AAL.O said it canceled 262 additional flights on Monday, pushing the total number of cancellations since Friday to 2,211, as it grapples with staffing shortages and unfavorable weather. The company, however, hoped some of that impact could be mitigated with nearly 1,800 flight attendants returning from leave starting Monday. "We expect considerable improvement beginning today with some residual impact from the weekend," company spokeswoman Sarah Jantz said in a statement.
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Nov 1 (Reuters) - American Airlines Inc AAL.O said it canceled 262 additional flights on Monday, pushing the total number of cancellations since Friday to 2,211, as it grapples with staffing shortages and unfavorable weather. Severe winds at the Dallas/Fort Worth International Airport in Texas have reduced American's arrival capacity by more than half, with the inclement weather also impacting the airline's staffing, American had said over the weekend. Unions representing American Airlines pilots and flight attendants did not immediately respond to Reuters' requests for comment.
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Nov 1 (Reuters) - American Airlines Inc AAL.O said it canceled 262 additional flights on Monday, pushing the total number of cancellations since Friday to 2,211, as it grapples with staffing shortages and unfavorable weather. Severe winds at the Dallas/Fort Worth International Airport in Texas have reduced American's arrival capacity by more than half, with the inclement weather also impacting the airline's staffing, American had said over the weekend. Staffing shortages have hit American Airlines, Southwest Airlines Co LUV.N and Spirit Airlines Inc SAVE.N in particular, as they ramp up flights ahead of the holiday season but face problems finding enough pilots and flight attendants.
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Nov 1 (Reuters) - American Airlines Inc AAL.O said it canceled 262 additional flights on Monday, pushing the total number of cancellations since Friday to 2,211, as it grapples with staffing shortages and unfavorable weather. Severe winds at the Dallas/Fort Worth International Airport in Texas have reduced American's arrival capacity by more than half, with the inclement weather also impacting the airline's staffing, American had said over the weekend. Staffing shortages have hit American Airlines, Southwest Airlines Co LUV.N and Spirit Airlines Inc SAVE.N in particular, as they ramp up flights ahead of the holiday season but face problems finding enough pilots and flight attendants.
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2021-11-01 00:00:00 UTC
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Top Stock Market News For Today November 1, 2021
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https://www.nasdaq.com/articles/top-stock-market-news-for-today-november-1-2021-2021-11-01
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Stock Market Futures Pointing To A Positive Start For November
Stock market futures edged higher in early Monday morning as investors awaited fresh earnings. Corporate earnings so far continue to demonstrate resilience amid global supply chain concerns. Meanwhile, Treasury Secretary Janet Yellen expressed confidence in the economy’s recovery from the pandemic. This week, a lot of the attention will also be on the upcoming Fed meeting on Tuesday and Wednesday. The central bank is widely expected to announce that it will begin to taper its $120 billion monthly bond purchases and conclude the program by the middle of next year.
“Depending on where you are looking, you are getting very different stories on the outlook for global markets. If you look at equities and the rally you are seeing, you think everything is OK. If you look at the bond market and how yields are moving, there’s obviously a lot more concern around inflation and policy normalization.”- Kerry Craig, Global Market Strategist at JPMorgan Asset Management
On the economic front, the Census Bureau reports construction spending data for September at 2 p.m. ET today. At the same time, the Institute for Supply Management will be releasing its Manufacturing Purchasing Managers Index for October. As of 6:51 a.m. ET, the Dow, S&P 500, and Nasdaq futures are increasing by 0.45%, 0.44%, and 0.41% respectively.
China EV Deliveries In Focus
Early Monday in China, Xpeng (NYSE: XPEV) announced its vehicle delivery results for October 2021. The Chinese smart electric vehicle (EV) maintained its strong momentum in October with a total of 10,138 Smart EVs delivered. This represents a 233% increase year-over-year and the second month surpassing the 10,000 unit benchmark. And that’s an impressive feat considering we are all in the midst of a global semiconductor shortage.
Meanwhile, Li Auto (NASDAQ: LI) announced that it delivered 7,649 Li ONEs in October 2021, increasing by 107.2% year-over-year. Finally, Nio (NYSE: NIO) delivered just 3,667 vehicles in October 2021. That represents a decline of 27.5% year-over-year. This came as a result of restructuring and upgrades of manufacturing lines as well as certain supply chain volatilities. Also, the Chinese EV trio are due to report their third-quarter earnings in the coming weeks. Like Tesla (NASDAQ: TSLA), they seem to have managed the pandemic-fueled global chip shortage relatively well. All three startups beat their own guidance for Q3 EV deliveries, after lowering delivery expectations over the course of the quarter.
Meanwhile, BYD (OTCMKTS: BYDDF) is likely to report October sales later this week. The Chinese EV and battery giant’s sales are proving especially robust. In September, BYD’s EV and plug-in hybrid sales rose by roughly 10,000 for the fourth straight month, topping 70,000. With Musk calling his China EV rivals “the most competitive in the world”, it wouldn’t hurt to keep an eye on these Chinese EV stocks moving forward.
[Read More] Best Lithium Battery Stocks To Buy Now? 4 To Know
American Airlines (AAL) Cancels More Than 1,500 Flights Over The Weekend
American Airlines (NASDAQ: AAL) has canceled more than 1,500 flights since Friday. The airline blamed staff shortages and bad weather for the disruption. It’s the latest mass flight disruption to face travelers as some carriers struggle to handle a rebound in travel demand. Many airlines, including American, are trying to staff up again to match the demand. This would minimize any potential disruption coming their way, especially during the upcoming holiday season.
“With additional weather throughout the system, our staffing begins to run tight as crew members end up out of their regular flight sequences,” said American’s COO David Seymour. He said that most customers were rebooked the same day and that he expects the operation to stabilize in November.
Recall that Southwest Airlines (NYSE: LUV) have also posted mass flight cancellations earlier this month. In detail, it cancelled more than 2,000 flights, costing it $75 million. Separately, Spirit Airlines (NYSE: SAVE) said the cancelations and delays cost it $50 million earlier in August. Now, there’s no doubt American Airlines would face losses of similar magnitude. But Seymour is confident that more team members will be in place for the holiday season as many flight attendants are returning this month.
[Read More] Top Reddit Stocks To Buy Right Now? 5 For Your Late 2021 Watchlist
Diamondback Energy Earnings On Tap After The Stock Market Closes Today
Diamondback Energy (NASDAQ: FANG) which posted stellar results in the previous quarter, is set to report another period of explosive growth. Fueling such momentum is the combination of the high oil prices and the strong earnings from the oil giants last week. Be it ExxonMobil (NYSE: XOM), Chevron (NYSE: CVX) or Saudi Aramco, these oil giants are seeing their profits soaring amid surging oil and gas prices.
For starters, Diamondback Energy is a land-based U.S. E&P that has operations primarily in the Permian Basin. About 60% of its production is oil, another 20% is in natural gas and the remaining is in natural gas liquids. Although the company has been struggling to keep its earnings in positive territory. Many believe this shouldn’t be a problem moving forward, as global energy demand kicks into high gear.
Analysts are calling for earnings per share of $2.65, more than tripling from earnings per share (EPS) of $0.62 in the year-ago period. Revenue is forecast to surge about 111% year-over-year to $1.52 billion, boosted by soaring crude oil and natural gas prices. Beyond these figures, investors will also be watching on the company’s production targets for the year ahead after increasing 36% in the second quarter. With skyrocketing energy prices, it will be interesting to see how these translate to movements in FANG stock.
[Read More] Top Stocks To Buy Now? 4 Renewable Energy Stocks For Your Watchlist
Notable Earnings To Watch In The Stock Market Today
As we kick start the first trading week of November, investors’ focus remains on corporate earnings results. For those keen to catch companies reporting before the opening bell, there is no shortage of names to note. The list includes ON Semiconductor Corp (NASDAQ: ON), PG&E Corp. (NYSE: PCG) and Trivago (NASDAQ: TRVG), just to name a few.
Alternatively, if you are looking to track earnings after the closing bell, there are several on tap as well. These include the likes of Diamondback Energy, Clorox (NYSE: CLX), Chegg (NYSE: CHGG) and Avis Budget Group (NASDAQ: CAR) among others. Whether it is keeping up with Chinese EV delivery numbers or following earnings, investors seem to have plenty of exciting news to consider and digest as we begin another week filled with earnings.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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4 To Know American Airlines (AAL) Cancels More Than 1,500 Flights Over The Weekend American Airlines (NASDAQ: AAL) has canceled more than 1,500 flights since Friday. The central bank is widely expected to announce that it will begin to taper its $120 billion monthly bond purchases and conclude the program by the middle of next year. In September, BYD’s EV and plug-in hybrid sales rose by roughly 10,000 for the fourth straight month, topping 70,000.
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4 To Know American Airlines (AAL) Cancels More Than 1,500 Flights Over The Weekend American Airlines (NASDAQ: AAL) has canceled more than 1,500 flights since Friday. China EV Deliveries In Focus Early Monday in China, Xpeng (NYSE: XPEV) announced its vehicle delivery results for October 2021. 5 For Your Late 2021 Watchlist Diamondback Energy Earnings On Tap After The Stock Market Closes Today Diamondback Energy (NASDAQ: FANG) which posted stellar results in the previous quarter, is set to report another period of explosive growth.
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4 To Know American Airlines (AAL) Cancels More Than 1,500 Flights Over The Weekend American Airlines (NASDAQ: AAL) has canceled more than 1,500 flights since Friday. 5 For Your Late 2021 Watchlist Diamondback Energy Earnings On Tap After The Stock Market Closes Today Diamondback Energy (NASDAQ: FANG) which posted stellar results in the previous quarter, is set to report another period of explosive growth. 4 Renewable Energy Stocks For Your Watchlist Notable Earnings To Watch In The Stock Market Today As we kick start the first trading week of November, investors’ focus remains on corporate earnings results.
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4 To Know American Airlines (AAL) Cancels More Than 1,500 Flights Over The Weekend American Airlines (NASDAQ: AAL) has canceled more than 1,500 flights since Friday. 5 For Your Late 2021 Watchlist Diamondback Energy Earnings On Tap After The Stock Market Closes Today Diamondback Energy (NASDAQ: FANG) which posted stellar results in the previous quarter, is set to report another period of explosive growth. 4 Renewable Energy Stocks For Your Watchlist Notable Earnings To Watch In The Stock Market Today As we kick start the first trading week of November, investors’ focus remains on corporate earnings results.
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4066.0
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2021-10-31 00:00:00 UTC
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American Airlines cancels nearly 850 flights on Sunday
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https://www.nasdaq.com/articles/american-airlines-cancels-nearly-850-flights-on-sunday-2021-10-31
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By Nicholas P. Brown
Oct 31 (Reuters) - American Airlines AAL.O canceled nearly 850 domestic and international flights on Sunday, citing staffing shortages and unfavorable weather, pushing total cancellations to 1,739 and counting since Friday.
A spokeswoman for American, the world's largest airline, said the company had canceled 848 flights as of 3:00 p.m. EST (1900 GMT) Sunday, more than 16% of its total. That follows 548 trips canceled by American on Saturday, and 343 on Friday. Sunday's figure could change as the day goes on.
In a letter to employees on Saturday, the Fort Worth, Texas-based company said severe winds at Dallas/Fort Worth International Airport reduced arrival capacity by more than half. Additional inclement weather means "our staffing begins to run tight as crew members end up out of their regular flight sequences," the letter said.
Airlines have been tight on staffing due to the coronavirus pandemic that drastically reduced demand for air travel. As normal life resumes, many are ramping back up.
In Saturday's letter, American said nearly 1,800 flight attendants are returning from leave starting on Monday, while more than 600 newly hired flight attendants will be coming on board by the end of the year.
The airline had offered voluntary leave to some employees to help weather the pandemic. It also furloughed 17,500 employees, though those people are now back to work, a company spokeswoman told Reuters on Sunday.
Southwest Airlines Co LUV.N has also said it is hiring aggressively, aiming to add 5,000 new workers by the end of 2021.
Earlier this month, Southwest canceled nearly 2,400 flights over a three-day period, blaming bad weather and air traffic issues in Florida.
(Reporting by Nicholas P. Brown in New York; additional reporting by Maria Ponnezhath in Bengaluru and David Shepardson in Washington; Editing by Bill Berkrot)
((nicholas.p.brown@tr.com; + 1-332-219-1289; Reuters Messaging: @NickPBrown))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Nicholas P. Brown Oct 31 (Reuters) - American Airlines AAL.O canceled nearly 850 domestic and international flights on Sunday, citing staffing shortages and unfavorable weather, pushing total cancellations to 1,739 and counting since Friday. A spokeswoman for American, the world's largest airline, said the company had canceled 848 flights as of 3:00 p.m. EST (1900 GMT) Sunday, more than 16% of its total. Additional inclement weather means "our staffing begins to run tight as crew members end up out of their regular flight sequences," the letter said.
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By Nicholas P. Brown Oct 31 (Reuters) - American Airlines AAL.O canceled nearly 850 domestic and international flights on Sunday, citing staffing shortages and unfavorable weather, pushing total cancellations to 1,739 and counting since Friday. In Saturday's letter, American said nearly 1,800 flight attendants are returning from leave starting on Monday, while more than 600 newly hired flight attendants will be coming on board by the end of the year. (Reporting by Nicholas P. Brown in New York; additional reporting by Maria Ponnezhath in Bengaluru and David Shepardson in Washington; Editing by Bill Berkrot) ((nicholas.p.brown@tr.com; + 1-332-219-1289; Reuters Messaging: @NickPBrown)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Nicholas P. Brown Oct 31 (Reuters) - American Airlines AAL.O canceled nearly 850 domestic and international flights on Sunday, citing staffing shortages and unfavorable weather, pushing total cancellations to 1,739 and counting since Friday. A spokeswoman for American, the world's largest airline, said the company had canceled 848 flights as of 3:00 p.m. EST (1900 GMT) Sunday, more than 16% of its total. In Saturday's letter, American said nearly 1,800 flight attendants are returning from leave starting on Monday, while more than 600 newly hired flight attendants will be coming on board by the end of the year.
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By Nicholas P. Brown Oct 31 (Reuters) - American Airlines AAL.O canceled nearly 850 domestic and international flights on Sunday, citing staffing shortages and unfavorable weather, pushing total cancellations to 1,739 and counting since Friday. A spokeswoman for American, the world's largest airline, said the company had canceled 848 flights as of 3:00 p.m. EST (1900 GMT) Sunday, more than 16% of its total. That follows 548 trips canceled by American on Saturday, and 343 on Friday.
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2021-10-29 00:00:00 UTC
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Anglo American aims to halve indirect greenhouse gas emissions by 2040
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https://www.nasdaq.com/articles/anglo-american-aims-to-halve-indirect-greenhouse-gas-emissions-by-2040-2021-10-29-0
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Adds detail on Scope 1 and 2
Oct 29 (Reuters) - Anglo American AAL.L aims to halve its indirect greenhouse gas emissions by 2040, the miner said on Friday, as it bolsters renewable electricity supply in South America and explores ways to better access metals and minerals.
The company said a reduction of Scope 3 emissions, or greenhouse gases (GHG) from a product or service that are released further along the value chain, depends on steel sector cuts in carbon emissions and supportive global policies.
"Through innovative technologies and practices, we can be more targeted in accessing those metals and minerals, use less water and energy and, crucially, generate fewer GHG emissions," Chief Executive Mark Cutifani said.
The miner said it was working to cut emissions in its supply chain and logistics, particularly in shipping.
Anglo American aims for Scope 1 and 2 emissions, produced directly by its activities and energy use, to be carbon neutral by 2040.
Last year just over a third of the electricity Anglo American used globally was from renewable sources, and the miner said it expected to draw 56% of its grid supply from renewables by 2023.
Anglo American has secured 100% renewable electricity supply for its operations across Brazil, Chile, and Peru, it added.
It also aims to replace diesel-powered mine trucks with hydrogen fuel-cell and battery trucks. Haul trucks contribute up to 80% of diesel emissions at the company's mines, it said.
(Reporting by Yadarisa Shabong in Bengaluru and Helen Reid in Johannesburg; Editing by Vinay Dwivedi and Clarence Fernandez)
((Yadarisa.Shabong@thomsonreuters.com; Twitter: https://twitter.com/Yadarisa; +919742735150;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Adds detail on Scope 1 and 2 Oct 29 (Reuters) - Anglo American AAL.L aims to halve its indirect greenhouse gas emissions by 2040, the miner said on Friday, as it bolsters renewable electricity supply in South America and explores ways to better access metals and minerals. "Through innovative technologies and practices, we can be more targeted in accessing those metals and minerals, use less water and energy and, crucially, generate fewer GHG emissions," Chief Executive Mark Cutifani said. Anglo American aims for Scope 1 and 2 emissions, produced directly by its activities and energy use, to be carbon neutral by 2040.
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Adds detail on Scope 1 and 2 Oct 29 (Reuters) - Anglo American AAL.L aims to halve its indirect greenhouse gas emissions by 2040, the miner said on Friday, as it bolsters renewable electricity supply in South America and explores ways to better access metals and minerals. Anglo American aims for Scope 1 and 2 emissions, produced directly by its activities and energy use, to be carbon neutral by 2040. Anglo American has secured 100% renewable electricity supply for its operations across Brazil, Chile, and Peru, it added.
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Adds detail on Scope 1 and 2 Oct 29 (Reuters) - Anglo American AAL.L aims to halve its indirect greenhouse gas emissions by 2040, the miner said on Friday, as it bolsters renewable electricity supply in South America and explores ways to better access metals and minerals. The company said a reduction of Scope 3 emissions, or greenhouse gases (GHG) from a product or service that are released further along the value chain, depends on steel sector cuts in carbon emissions and supportive global policies. Last year just over a third of the electricity Anglo American used globally was from renewable sources, and the miner said it expected to draw 56% of its grid supply from renewables by 2023.
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Adds detail on Scope 1 and 2 Oct 29 (Reuters) - Anglo American AAL.L aims to halve its indirect greenhouse gas emissions by 2040, the miner said on Friday, as it bolsters renewable electricity supply in South America and explores ways to better access metals and minerals. The company said a reduction of Scope 3 emissions, or greenhouse gases (GHG) from a product or service that are released further along the value chain, depends on steel sector cuts in carbon emissions and supportive global policies. "Through innovative technologies and practices, we can be more targeted in accessing those metals and minerals, use less water and energy and, crucially, generate fewer GHG emissions," Chief Executive Mark Cutifani said.
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4068.0
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2021-10-29 00:00:00 UTC
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Anglo American aims to halve indirect greenhouse gas emissions by 2040
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AAL
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https://www.nasdaq.com/articles/anglo-american-aims-to-halve-indirect-greenhouse-gas-emissions-by-2040-2021-10-29
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Oct 29 (Reuters) - Anglo American AAL.L said on Friday it aims to halve its indirect greenhouse gas emissions by 2040, as the miner bolsters renewable electricity supply in South America and explores ways to better access metals and minerals.
The company said reduction in Scope 3 emissions, or greenhouse gases (GHG) produced from a company's product or service that are released further along the value chain, depends on the steel sector cutting carbon emissions and a supportive global policy.
"Through innovative technologies and practices, we can be more targeted in accessing those metals and minerals, use less water and energy and, crucially, generate fewer GHG emissions," Chief Executive Officer Mark Cutifani said.
(Reporting by Yadarisa Shabong in Bengaluru; Editing by Vinay Dwivedi)
((Yadarisa.Shabong@thomsonreuters.com; Twitter: https://twitter.com/Yadarisa; +919742735150;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Oct 29 (Reuters) - Anglo American AAL.L said on Friday it aims to halve its indirect greenhouse gas emissions by 2040, as the miner bolsters renewable electricity supply in South America and explores ways to better access metals and minerals. The company said reduction in Scope 3 emissions, or greenhouse gases (GHG) produced from a company's product or service that are released further along the value chain, depends on the steel sector cutting carbon emissions and a supportive global policy. "Through innovative technologies and practices, we can be more targeted in accessing those metals and minerals, use less water and energy and, crucially, generate fewer GHG emissions," Chief Executive Officer Mark Cutifani said.
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Oct 29 (Reuters) - Anglo American AAL.L said on Friday it aims to halve its indirect greenhouse gas emissions by 2040, as the miner bolsters renewable electricity supply in South America and explores ways to better access metals and minerals. The company said reduction in Scope 3 emissions, or greenhouse gases (GHG) produced from a company's product or service that are released further along the value chain, depends on the steel sector cutting carbon emissions and a supportive global policy. "Through innovative technologies and practices, we can be more targeted in accessing those metals and minerals, use less water and energy and, crucially, generate fewer GHG emissions," Chief Executive Officer Mark Cutifani said.
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Oct 29 (Reuters) - Anglo American AAL.L said on Friday it aims to halve its indirect greenhouse gas emissions by 2040, as the miner bolsters renewable electricity supply in South America and explores ways to better access metals and minerals. The company said reduction in Scope 3 emissions, or greenhouse gases (GHG) produced from a company's product or service that are released further along the value chain, depends on the steel sector cutting carbon emissions and a supportive global policy. (Reporting by Yadarisa Shabong in Bengaluru; Editing by Vinay Dwivedi) ((Yadarisa.Shabong@thomsonreuters.com; Twitter: https://twitter.com/Yadarisa; +919742735150;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Oct 29 (Reuters) - Anglo American AAL.L said on Friday it aims to halve its indirect greenhouse gas emissions by 2040, as the miner bolsters renewable electricity supply in South America and explores ways to better access metals and minerals. The company said reduction in Scope 3 emissions, or greenhouse gases (GHG) produced from a company's product or service that are released further along the value chain, depends on the steel sector cutting carbon emissions and a supportive global policy. "Through innovative technologies and practices, we can be more targeted in accessing those metals and minerals, use less water and energy and, crucially, generate fewer GHG emissions," Chief Executive Officer Mark Cutifani said.
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4069.0
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2021-10-28 00:00:00 UTC
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State Department says Russia approves U.S. airline overflights
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https://www.nasdaq.com/articles/state-department-says-russia-approves-u.s.-airline-overflights-2021-10-28
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By David Shepardson
WASHINGTON, Oct 28 (Reuters) - The U.S State Department said late Thursday the Russian government has approved U.S. air carriers' requests for overflights even as some cargo and passenger airlines seek additional flights.
This month, a trade group representing major U.S. passenger and cargo carriers had asked the State Department to "act urgently" to address the needs of airlines to secure rights to overfly Russian airspace, according to a letter seen by Reuters.
Airlines for America, which represents American Airlines AAL.O, Delta Airlines DAL.N, United Airlines UAL.N, FedEx Corp FDX.N, United Parcel Service UPS.N and others, in an Oct. 14 letter asked Secretary of State Antony Blinken for his intervention, warning that without action they could be forced to halt some flights.
"Many U.S. airlines urgently need additional rights to overfly Russian airspace to meet market demands," the letter said, adding without additional rights "U.S. airlines will be forced to operate on alternate, inefficient routes resulting in time penalties, technical stops, excess CO2 emissions and loss of historic slot rights."
The State Department confirmed it received the letter and said "Russia approved U.S. carriers’ applications for overflights last week. The Department of State continues to engage with the relevant Russian authorities to secure expanded air services opportunities for U.S. carriers."
The department declined to say how many overflights had been approved.
United said Thursday it "has received the necessary overflight approvals from Russian authorities to continue operating our nonstop flights to India this winter without interruption."
The State Department held a meeting with airlines to discuss the issue last week, airline officials said. Some carriers are pursuing additional overflight rights.
The Russian Embassy in Washington did not respond to requests for comment. The airline group did not comment.
The airline group's chief executive, Nicholas Calio, in the letter said "U.S. passenger airlines need additional Russian overflights to operate efficiently from the U.S. to destinations in Asia, India, and the Middle East."
He added that "U.S. all-cargo carriers need restoration of overflight rights on all-cargo routes between points in Europe and Asia that were mutually agreed upon but were unilaterally stripped away by the Russian government."
With ties already at post-Cold War lows, Russia and the United States are in a dispute over the number of diplomats they can post to each other's capitals, and failed to make progress at talks this month.
Calio warned that without action "U.S. carriers may need to consider mitigation measures, including schedule reductions. This outcome would make U.S. carriers far less competitive globally ... and will exacerbate the growing backlog of cargo and express shipments needed to reduce the pressure on the supply chain."
(Reporting by David Shepardson; Editing by Stephen Coates, Chris Reese and 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.
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Airlines for America, which represents American Airlines AAL.O, Delta Airlines DAL.N, United Airlines UAL.N, FedEx Corp FDX.N, United Parcel Service UPS.N and others, in an Oct. 14 letter asked Secretary of State Antony Blinken for his intervention, warning that without action they could be forced to halt some flights. By David Shepardson WASHINGTON, Oct 28 (Reuters) - The U.S State Department said late Thursday the Russian government has approved U.S. air carriers' requests for overflights even as some cargo and passenger airlines seek additional flights. This month, a trade group representing major U.S. passenger and cargo carriers had asked the State Department to "act urgently" to address the needs of airlines to secure rights to overfly Russian airspace, according to a letter seen by Reuters.
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Airlines for America, which represents American Airlines AAL.O, Delta Airlines DAL.N, United Airlines UAL.N, FedEx Corp FDX.N, United Parcel Service UPS.N and others, in an Oct. 14 letter asked Secretary of State Antony Blinken for his intervention, warning that without action they could be forced to halt some flights. By David Shepardson WASHINGTON, Oct 28 (Reuters) - The U.S State Department said late Thursday the Russian government has approved U.S. air carriers' requests for overflights even as some cargo and passenger airlines seek additional flights. "Many U.S. airlines urgently need additional rights to overfly Russian airspace to meet market demands," the letter said, adding without additional rights "U.S. airlines will be forced to operate on alternate, inefficient routes resulting in time penalties, technical stops, excess CO2 emissions and loss of historic slot rights."
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Airlines for America, which represents American Airlines AAL.O, Delta Airlines DAL.N, United Airlines UAL.N, FedEx Corp FDX.N, United Parcel Service UPS.N and others, in an Oct. 14 letter asked Secretary of State Antony Blinken for his intervention, warning that without action they could be forced to halt some flights. By David Shepardson WASHINGTON, Oct 28 (Reuters) - The U.S State Department said late Thursday the Russian government has approved U.S. air carriers' requests for overflights even as some cargo and passenger airlines seek additional flights. "Many U.S. airlines urgently need additional rights to overfly Russian airspace to meet market demands," the letter said, adding without additional rights "U.S. airlines will be forced to operate on alternate, inefficient routes resulting in time penalties, technical stops, excess CO2 emissions and loss of historic slot rights."
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Airlines for America, which represents American Airlines AAL.O, Delta Airlines DAL.N, United Airlines UAL.N, FedEx Corp FDX.N, United Parcel Service UPS.N and others, in an Oct. 14 letter asked Secretary of State Antony Blinken for his intervention, warning that without action they could be forced to halt some flights. By David Shepardson WASHINGTON, Oct 28 (Reuters) - The U.S State Department said late Thursday the Russian government has approved U.S. air carriers' requests for overflights even as some cargo and passenger airlines seek additional flights. United said Thursday it "has received the necessary overflight approvals from Russian authorities to continue operating our nonstop flights to India this winter without interruption."
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4070.0
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2021-10-28 00:00:00 UTC
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American Airlines Flight Diverted After Passenger Brutally Attacks Crew
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AAL
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https://www.nasdaq.com/articles/american-airlines-flight-diverted-after-passenger-brutally-attacks-crew-2021-10-28
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(RTTNews) - An American Airlines (AAL) flight from New York to Orange County, California, was diverted to Denver on Wednesday after a passenger allegedly attacked a female flight attendant. While condemning the attack, the airline CEO said, "It was one of the worst displays of unruly behavior we've ever witnessed."
While certain witnesses to the attack claimed that it took place over the issue of wearing a mask, American Airlines clarified that it was not the case.
In a statement, the company said, "Flight 976 from John F. Kennedy International Airport to John Wayne Airport, in Santa Ana, was diverted to Denver due to a passenger who physically assaulted a flight attendant. The aircraft landed safely and taxied to the gate, where law enforcement removed and apprehended the passenger."
The attacked attendant was shifted to a local hospital and according to reports, is suffering from broken bones to the face. The Federal Aviation Administration said that it would investigate the case.
According to witnesses, the incident took place about halfway during the flight, when it was over Ohio. The passenger was seated in the first or business class. No other injuries were reported. The Denver FBI, which is investigating the case, has not yet released the name of the suspect.
Incidents of passengers assaulting airline crew has been on the rise since travel restarted after lifting of Covid restrictions.
In 2021 alone, the Federal Airline Authority has received around 5,000 complaints of alleged assault and in 215 cases, the offenders are charged under federal rules and will be arrested.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - An American Airlines (AAL) flight from New York to Orange County, California, was diverted to Denver on Wednesday after a passenger allegedly attacked a female flight attendant. While certain witnesses to the attack claimed that it took place over the issue of wearing a mask, American Airlines clarified that it was not the case. The attacked attendant was shifted to a local hospital and according to reports, is suffering from broken bones to the face.
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(RTTNews) - An American Airlines (AAL) flight from New York to Orange County, California, was diverted to Denver on Wednesday after a passenger allegedly attacked a female flight attendant. Incidents of passengers assaulting airline crew has been on the rise since travel restarted after lifting of Covid restrictions. In 2021 alone, the Federal Airline Authority has received around 5,000 complaints of alleged assault and in 215 cases, the offenders are charged under federal rules and will be arrested.
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(RTTNews) - An American Airlines (AAL) flight from New York to Orange County, California, was diverted to Denver on Wednesday after a passenger allegedly attacked a female flight attendant. In a statement, the company said, "Flight 976 from John F. Kennedy International Airport to John Wayne Airport, in Santa Ana, was diverted to Denver due to a passenger who physically assaulted a flight attendant. In 2021 alone, the Federal Airline Authority has received around 5,000 complaints of alleged assault and in 215 cases, the offenders are charged under federal rules and will be arrested.
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(RTTNews) - An American Airlines (AAL) flight from New York to Orange County, California, was diverted to Denver on Wednesday after a passenger allegedly attacked a female flight attendant. While certain witnesses to the attack claimed that it took place over the issue of wearing a mask, American Airlines clarified that it was not the case. The Federal Aviation Administration said that it would investigate the case.
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4071.0
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2021-10-28 00:00:00 UTC
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American Airlines CEO says onboard violent incidents must stop
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AAL
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https://www.nasdaq.com/articles/american-airlines-ceo-says-onboard-violent-incidents-must-stop-2021-10-28-0
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nan
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nan
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By David Shepardson
WASHINGTON, Oct 28 (Reuters) - American Airlines AAL.O Chief Executive Doug Parker on Thursday sounded the alarm about disruptive and violent incidents onboard U.S. airplanes after a flight attendant was physically assaulted, prompting a flight diversion.
"This type of behavior has to stop," Parker said in a video posted on Instagram. "American Airlines will not tolerate airport or inflight misconduct of any kind."
American said a New York to Santa Ana, California, flight on Wednesday diverted to Denver after a passenger assaulted a flight attendant.
U.S. airlines have reported a record number of violent incidents this year and the Federal Aviation Administration (FAA) pledged a "zero tolerance" approach.
Parker called the latest incident "one of the worst displays of unruly behavior we’ve ever witnessed."
A passenger on the flight told CBS Los Angeles that the flight attendant had blood splattered on her mask after she had been punched. The passenger was arrested when the plane made its unplanned stop in Denver.
On Oct. 8, President Joe Biden said he instructed the Justice Department to "deal" with the rising number of violent incidents onboard planes.
FAA Administrator Steve Dickson imposed the zero-tolerance order on passenger disturbances aboard airplanes after supporters of former U.S. President Donald Trump were disruptive on flights around the Jan. 6 U.S. Capitol attack. He has said the zero-tolerance order will last until least mid-January.
Through Monday, there have been 4,941 reports of unruly passenger incidents, including 3,580 related to pandemic face covering regulations.
The FAA has initiated enforcement actions in 216 cases, issuing more than $1 million in proposed fines.
Senate Majority Whip Dick Durbin told U.S. Attorney General Merrick Garland at a hearing on Wednesday that flight attendants were facing thousands of confrontations over wearing masks on aircraft. "This has to be taken seriously. These assaults in the so-called name of liberty are unacceptable," Durbin said.
In June, a group representing major U.S. airlines such as American, Delta Air Lines DAL.N and United Airlines UAL.N as well as aviation unions asked Garland to prosecute violent air passengers.
A union representing Southwest Airlines LUV.N workers said in May that a flight attendant "was seriously assaulted, resulting in injuries to the face and a loss of two teeth."
Delta in September called on other U.S. airlines to share lists of passengers who have been banned during the COVID-19 pandemic for disruptive behavior to help deter the rising number of incidents. Delta said since the pandemic began it has put more than 1,600 people on its "no fly" list.
Parker said the passenger who assaulted the flight attendant would be banned from the airline.
(Reporting by David Shepardson Editing by Bill Berkrot)
((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.
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By David Shepardson WASHINGTON, Oct 28 (Reuters) - American Airlines AAL.O Chief Executive Doug Parker on Thursday sounded the alarm about disruptive and violent incidents onboard U.S. airplanes after a flight attendant was physically assaulted, prompting a flight diversion. FAA Administrator Steve Dickson imposed the zero-tolerance order on passenger disturbances aboard airplanes after supporters of former U.S. President Donald Trump were disruptive on flights around the Jan. 6 U.S. Capitol attack. Senate Majority Whip Dick Durbin told U.S. Attorney General Merrick Garland at a hearing on Wednesday that flight attendants were facing thousands of confrontations over wearing masks on aircraft.
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By David Shepardson WASHINGTON, Oct 28 (Reuters) - American Airlines AAL.O Chief Executive Doug Parker on Thursday sounded the alarm about disruptive and violent incidents onboard U.S. airplanes after a flight attendant was physically assaulted, prompting a flight diversion. On Oct. 8, President Joe Biden said he instructed the Justice Department to "deal" with the rising number of violent incidents onboard planes. In June, a group representing major U.S. airlines such as American, Delta Air Lines DAL.N and United Airlines UAL.N as well as aviation unions asked Garland to prosecute violent air passengers.
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By David Shepardson WASHINGTON, Oct 28 (Reuters) - American Airlines AAL.O Chief Executive Doug Parker on Thursday sounded the alarm about disruptive and violent incidents onboard U.S. airplanes after a flight attendant was physically assaulted, prompting a flight diversion. American said a New York to Santa Ana, California, flight on Wednesday diverted to Denver after a passenger assaulted a flight attendant. Delta in September called on other U.S. airlines to share lists of passengers who have been banned during the COVID-19 pandemic for disruptive behavior to help deter the rising number of incidents.
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By David Shepardson WASHINGTON, Oct 28 (Reuters) - American Airlines AAL.O Chief Executive Doug Parker on Thursday sounded the alarm about disruptive and violent incidents onboard U.S. airplanes after a flight attendant was physically assaulted, prompting a flight diversion. U.S. airlines have reported a record number of violent incidents this year and the Federal Aviation Administration (FAA) pledged a "zero tolerance" approach. Delta in September called on other U.S. airlines to share lists of passengers who have been banned during the COVID-19 pandemic for disruptive behavior to help deter the rising number of incidents.
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4072.0
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2021-10-28 00:00:00 UTC
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American Airlines CEO says onboard violent incidents must stop
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AAL
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https://www.nasdaq.com/articles/american-airlines-ceo-says-onboard-violent-incidents-must-stop-2021-10-28
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nan
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nan
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WASHINGTON, Oct 28 (Reuters) - American Airlines AAL.O Chief Executive Doug Parker on Thursday sounded the alarm about disruptive and violent incidents onboard U.S. airplanes after a flight attendant was physically assaulted prompting a flight diversion.
"This type of behavior has to stop," Parker said in a video posted on Instagram. "American Airlines will not tolerate airport or inflight misconduct of any kind."
American said a New York to Santa Ana flight Wednesday diverted to Denver after a passenger assaulted a flight attendant. U.S. airlines have reported a record number of violent incidents this year as regulators have pledged a "zero tolerance" approach.
(Reporting by David Shepardson)
((David.Shepardson@thomsonreuters.com; 2028988324;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
WASHINGTON, Oct 28 (Reuters) - American Airlines AAL.O Chief Executive Doug Parker on Thursday sounded the alarm about disruptive and violent incidents onboard U.S. airplanes after a flight attendant was physically assaulted prompting a flight diversion. "This type of behavior has to stop," Parker said in a video posted on Instagram. U.S. airlines have reported a record number of violent incidents this year as regulators have pledged a "zero tolerance" approach.
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WASHINGTON, Oct 28 (Reuters) - American Airlines AAL.O Chief Executive Doug Parker on Thursday sounded the alarm about disruptive and violent incidents onboard U.S. airplanes after a flight attendant was physically assaulted prompting a flight diversion. American said a New York to Santa Ana flight Wednesday diverted to Denver after a passenger assaulted a flight attendant. U.S. airlines have reported a record number of violent incidents this year as regulators have pledged a "zero tolerance" approach.
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WASHINGTON, Oct 28 (Reuters) - American Airlines AAL.O Chief Executive Doug Parker on Thursday sounded the alarm about disruptive and violent incidents onboard U.S. airplanes after a flight attendant was physically assaulted prompting a flight diversion. American said a New York to Santa Ana flight Wednesday diverted to Denver after a passenger assaulted a flight attendant. (Reporting by David Shepardson) ((David.Shepardson@thomsonreuters.com; 2028988324;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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WASHINGTON, Oct 28 (Reuters) - American Airlines AAL.O Chief Executive Doug Parker on Thursday sounded the alarm about disruptive and violent incidents onboard U.S. airplanes after a flight attendant was physically assaulted prompting a flight diversion. "This type of behavior has to stop," Parker said in a video posted on Instagram. "American Airlines will not tolerate airport or inflight misconduct of any kind."
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4073.0
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2021-10-28 00:00:00 UTC
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What Does Website Traffic Reveal about Airline Industry Recovery?
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AAL
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https://www.nasdaq.com/articles/what-does-website-traffic-reveal-about-airline-industry-recovery-2021-10-28
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nan
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nan
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To say the last year-and-a-half has been turbulent for airline companies would be an understatement. The COVID-19 pandemic introduced global government-mandated lockdowns, many companies kept their employees at home, and leisure travel nearly ground to a halt. As the pandemic persisted, many people learned to live with the virus, and the pent-up demand for travel was unleashed in between waves of viral variants.
Currently, many people are traveling more than they did a year ago. However, with the summer travel season behind us, airlines may see fewer passengers, because workers have been returning to their jobs. Additionally, fuel prices have spiked over the last month, as supply is gobbled up by reopened economies.
Discerning which airline stocks to invest in can be a daunting endeavor, as the companies are typically large and are subject to several macroeconomic forces. This is where TipRanks new Website Traffic tool comes in. The financial aggregator site has teamed up with SEMrush (SEMR) to provide statistical analyses on visits to companies' websites.
Considering that airlines often rely on their websites for ticketing, payment, and customer service processes, analyzing website visits can provide alternative insight into how an airline has been performing. Let’s take a look at what the data says, and compare it to hypotheses from professional financial analysts.
American Airlines
A major player in the U.S. airline industry, American Airlines, Inc. (AAL) has seen its fair share of downside over the last few months. The stock saw a large spike in valuation between May and June of 2020, when investors were anticipating a robust airline summer recovery from COVID-19 lockdowns. Unfortunately for AAL, this was the peak.
Soon thereafter, investors were shaken off by fears induced from the Delta variant, the spread of which thrust more countries into lockdowns and stifled travel plans worldwide. American Airline's valuation has been relatively steady since, albeit in a bearish pattern.
From examining data on aa.com, it can be inferred that visits to the website moved nearly in tandem with the stock’s valuation. From Q2 to Q3, total visits on all devices have declined -5.87%, while the share price has fallen –3.25%. Meanwhile, when comparing the year-to-date ranges of 2020 and 2021, the data shows a 22.86% gain in total device visits. This shows a robust long-term recovery from last year’s pandemic depths.
See more on TipRanks' Website Traffic tool >>
Coverage of American Airlines was recently conducted by Sheila Kahyaoglu of Jefferies Group, who wrote that “AAL may be the best positioned of the network carriers, with the youngest fleet and a strong competitive positioning through its network, with the restrictive nature of AAL's leverage keeping us on the sidelines.”
Kahyaoglu rated the stock as a Hold, and provided a price target of $20. This target came as a downgrade from her previous one at $24 per share, and currently represents a potential 12-month upside of 2.9%. The average American Airlines price target is $18.79, representing a possible 12-month downside of -1.26%.
On TipRanks, AAL has an analyst consensus rating of Hold, based on 2 Buy, 2 Hold, and 4 Sell ratings.
Southwest Airlines
A comparable yet distinctively different airline, Southwest Airlines Co.’s (LUV) share price has been through a saga of its own. The world’s largest low-cost carrier experienced a similar wave of investor interest in the first half of 2021, wherein its shares rose about 45% from late January lows to their early April highs. Similarly to AAL, the Delta variant brought investor woes to Southwest and the share price declined in a consistent fashion.
However, LUV’s shares rose again in late September and peaked in mid-October, before falling again. This movement corresponded with the climbing prices of fuel and oil, which brings down airlines’ gross margins. The share price has been on the decline ever since.
Taking a look at the website data on TipRanks' traffic tool provides further understanding of the situation. Quarter-over-quarter, visits to southwest.com from all devices have declined –7.12%, while the share price has moved down -3.13%. Additionally, comparing the year-to-date ranges of 2020 and 2021, visits to the airline’s website have increased a significant 10.75%, corresponding with the emergence from the pandemic.
An expert in airline stock analysis, Sheila Kahyaoglu of Jefferies Group covered Southwest in her recent report. She was bullish on LUV, writing that the company has expanded aggressively in the U.S. throughout the pandemic and is poised to emerge as a much more major player in its industry. She added that “the airline is well-capitalized and will be the first to return to shareholders,” and that “the longer-term opportunity for LUV remains attractive.”
The four-star analyst reiterated a Buy rating on the stock, and declared a price target of $60.
On TipRanks, LUV has an analyst rating consensus of Strong Buy, based on 14 Buy and 2 Hold ratings. The average Southwest Airlines price target is $62.40, indicating a potential 12-month upside of 33.99%.
Disclosure: At the time of publication, Brock Ladenheim did not have a position in any of the securities mentioned in this article.
Disclaimer: The information contained in this article represents the views and opinion of the writer only, and not the views or opinion of Tipranks or its affiliates, and should be considered for informational purposes only. Tipranks makes no warranties about the completeness, accuracy or reliability of such information. Nothing in this article should be taken as a recommendation or solicitation to purchase or sell securities. Nothing in the article constitutes legal, professional, investment and/or financial advice and/or takes into account the specific needs and/or requirements of an individual, nor does any information in the article constitute a comprehensive or complete statement of the matters or subject discussed therein. Tipranks and its affiliates disclaim all liability or responsibility with respect to the content of the article, and any action taken upon the information in the article is at your own and sole risk. The link to this article does not constitute an endorsement or recommendation by Tipranks or its affiliates. Past performance is not indicative of future results, prices or performance.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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See more on TipRanks' Website Traffic tool >> Coverage of American Airlines was recently conducted by Sheila Kahyaoglu of Jefferies Group, who wrote that “AAL may be the best positioned of the network carriers, with the youngest fleet and a strong competitive positioning through its network, with the restrictive nature of AAL's leverage keeping us on the sidelines.” Kahyaoglu rated the stock as a Hold, and provided a price target of $20. American Airlines A major player in the U.S. airline industry, American Airlines, Inc. (AAL) has seen its fair share of downside over the last few months. Unfortunately for AAL, this was the peak.
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See more on TipRanks' Website Traffic tool >> Coverage of American Airlines was recently conducted by Sheila Kahyaoglu of Jefferies Group, who wrote that “AAL may be the best positioned of the network carriers, with the youngest fleet and a strong competitive positioning through its network, with the restrictive nature of AAL's leverage keeping us on the sidelines.” Kahyaoglu rated the stock as a Hold, and provided a price target of $20. On TipRanks, AAL has an analyst consensus rating of Hold, based on 2 Buy, 2 Hold, and 4 Sell ratings. American Airlines A major player in the U.S. airline industry, American Airlines, Inc. (AAL) has seen its fair share of downside over the last few months.
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American Airlines A major player in the U.S. airline industry, American Airlines, Inc. (AAL) has seen its fair share of downside over the last few months. See more on TipRanks' Website Traffic tool >> Coverage of American Airlines was recently conducted by Sheila Kahyaoglu of Jefferies Group, who wrote that “AAL may be the best positioned of the network carriers, with the youngest fleet and a strong competitive positioning through its network, with the restrictive nature of AAL's leverage keeping us on the sidelines.” Kahyaoglu rated the stock as a Hold, and provided a price target of $20. Unfortunately for AAL, this was the peak.
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Similarly to AAL, the Delta variant brought investor woes to Southwest and the share price declined in a consistent fashion. American Airlines A major player in the U.S. airline industry, American Airlines, Inc. (AAL) has seen its fair share of downside over the last few months. Unfortunately for AAL, this was the peak.
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4074.0
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2021-10-27 00:00:00 UTC
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FTSE 100 slips, midcaps gain after UK growth forecast lifted
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AAL
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https://www.nasdaq.com/articles/ftse-100-slips-midcaps-gain-after-uk-growth-forecast-lifted-2021-10-27
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nan
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nan
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By Bansari Mayur Kamdar
Oct 27 (Reuters) - The United Kingdom's blue-chip share index slipped on Wednesday and midcap stocks gained ground after British finance minister Rishi Sunak forecast faster growth and lower borrowing as the economy bounces back from the coronavirus pandemic.
The blue-chip FTSE 100 index .FTSE ended 0.3% lower, weighed by weakness in miners .FTNMX551020 and insurance firms .FTNMX303020. The domestically-orientated FTSE 250 index .FTMC inched up 0.1%, led by pub operators.
J D Wetherspoon JDW.L, Mitchells & Butlers MAB.L and City Pub Group CPC.L rose between 1.5% and 5.9% after Sunak scrapped a planned increase in duty on alcohol worth about 3 billion pounds ($4 billion) and simplified taxes.
Overall market moves were limited as Sunak used his half-yearly budget statement to announce multi-billion-pound investments, but forecasters said the government's tax take was on course to be its biggest since the 1950s.
"There have been several winners in today's budget – retail, leisure and hospitality companies in particular as they benefit from 50% discount on business rates for the next year, and simplified alcohol taxes," said Emma Wall, head of investment analysis at Hargreaves Lansdown.
"However, with the minimum wage up it's not all good news for restaurants, bars and shops, coming off the back of a torrid couple of years."
Sunak also vowed to protect households from rising inflation. Investors are expecting the Bank of England to raise interest rates next week for the first time since the start of the pandemic amid soaring fuel costs and labour shortages.
Among individual stocks, GlaxoSmithKline GSK.L rose 0.5 after the pharmaceutical company lifted its annual profit forecast following strong third-quarter results.
Harry Potter publisher Bloomsbury Publishing BLPU.L increased its dividend after reporting a strong rise in half-year revenue and profit, pushing its stock up 4.3%.
Miners Glencore GLEN.L, Rio Tinto RIO.L and Anglo American AAL.L fell between 1.5% and 2.3%, while weaker crude prices hit oil majors BP BP.L and Royal Dutch Shell RDSa.L. O/R
Precious metals miner Fresnillo Plc FRES.L slipped 3.5% after reporting a fall in gold and silver production for the quarter.
(Reporting by Bansari Mayur Kamdar, Sruthi Shankar and Amal S in Bengaluru; Editing by Subhranshu Sahu and Vinay Dwivedi and Kirsten Donovan)
((Amal.S@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 6749 3677;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Miners Glencore GLEN.L, Rio Tinto RIO.L and Anglo American AAL.L fell between 1.5% and 2.3%, while weaker crude prices hit oil majors BP BP.L and Royal Dutch Shell RDSa.L. By Bansari Mayur Kamdar Oct 27 (Reuters) - The United Kingdom's blue-chip share index slipped on Wednesday and midcap stocks gained ground after British finance minister Rishi Sunak forecast faster growth and lower borrowing as the economy bounces back from the coronavirus pandemic. "There have been several winners in today's budget – retail, leisure and hospitality companies in particular as they benefit from 50% discount on business rates for the next year, and simplified alcohol taxes," said Emma Wall, head of investment analysis at Hargreaves Lansdown.
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Miners Glencore GLEN.L, Rio Tinto RIO.L and Anglo American AAL.L fell between 1.5% and 2.3%, while weaker crude prices hit oil majors BP BP.L and Royal Dutch Shell RDSa.L. The blue-chip FTSE 100 index .FTSE ended 0.3% lower, weighed by weakness in miners .FTNMX551020 and insurance firms .FTNMX303020. J D Wetherspoon JDW.L, Mitchells & Butlers MAB.L and City Pub Group CPC.L rose between 1.5% and 5.9% after Sunak scrapped a planned increase in duty on alcohol worth about 3 billion pounds ($4 billion) and simplified taxes.
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Miners Glencore GLEN.L, Rio Tinto RIO.L and Anglo American AAL.L fell between 1.5% and 2.3%, while weaker crude prices hit oil majors BP BP.L and Royal Dutch Shell RDSa.L. By Bansari Mayur Kamdar Oct 27 (Reuters) - The United Kingdom's blue-chip share index slipped on Wednesday and midcap stocks gained ground after British finance minister Rishi Sunak forecast faster growth and lower borrowing as the economy bounces back from the coronavirus pandemic. J D Wetherspoon JDW.L, Mitchells & Butlers MAB.L and City Pub Group CPC.L rose between 1.5% and 5.9% after Sunak scrapped a planned increase in duty on alcohol worth about 3 billion pounds ($4 billion) and simplified taxes.
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Miners Glencore GLEN.L, Rio Tinto RIO.L and Anglo American AAL.L fell between 1.5% and 2.3%, while weaker crude prices hit oil majors BP BP.L and Royal Dutch Shell RDSa.L. The blue-chip FTSE 100 index .FTSE ended 0.3% lower, weighed by weakness in miners .FTNMX551020 and insurance firms .FTNMX303020. J D Wetherspoon JDW.L, Mitchells & Butlers MAB.L and City Pub Group CPC.L rose between 1.5% and 5.9% after Sunak scrapped a planned increase in duty on alcohol worth about 3 billion pounds ($4 billion) and simplified taxes.
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4075.0
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2021-10-27 00:00:00 UTC
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Buy a coal mine, get a bonus: Glencore makes fortune on Colombian deal
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AAL
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https://www.nasdaq.com/articles/buy-a-coal-mine-get-a-bonus%3A-glencore-makes-fortune-on-colombian-deal-2021-10-27
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nan
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nan
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By Dmitry Zhdannikov and Clara Denina
LONDON, Oct 27 (Reuters) - For investors seeking to burnish sustainable portfolios, coal mines are an anathema.
That sits well with top global miner and trader Glencore GLEN.L, whose purchase of a major coal mine in Colombia will generate a bonus of hundreds of millions of dollars before the deal has even been completed.
The miner bought the 66% shares in the Cerrejon thermal coal mine it didn't yet control from rivals BHP Group BHPB.L, BHP.AX and Anglo American AAL.L in June this year for an aggregate $588 million.
The deal was welcomed by BHP's and Anglo's shareholders as a major divestment of coal assets to meet emissions targets and shift towards sustainable energy.
The agreement they signed had, however, an unusual clause: Glencore would take over cashflows from the mine from 2021.
At the time of the deal, the Swiss-based miner said it anticipated the cash generated by the mine might reduce the purchase price to $230 million.
But the red-hot market for thermal coal has made that assumption conservative after prices for the most polluting fossil fuel soared on the back of Chinese power shortages and a European gas squeeze, said insiders and analysts.
One insider said that Glencore will get a "fat cheque" from revenues when the deal closes by the end of June 2022.
Broker Liberum estimates Cerrejon will generate $1 billion in EBITDA (earnings before interest, taxes, depreciation and amortization) cash flow in the second half of 2021 alone.
"Exiting Cerrejon is part of our long-term strategic decision to focus on future facing commodities. There is no change to that view, irrespective of near-term thermal coal prices," a BHP spokesperson said.
Glencore, which already controlled a third of Cerrejon before the transaction, declined to comment.
"Our agreement to sell our minority shareholding in Cerrejón marks the final step in our responsible transition away from thermal coal operations as we continue to position our portfolio firmly towards supplying a wide range of future-enabling metals and minerals to our customers," Anglo American said in an emailed statement.
BHP and Anglo sold or spun off most of their coal assets, while Glencore has taken a divergent path and set a goal of managing the depletion of its coal mines by the mid-2040s, rather than selling them.
"Given the speed at which the deal is paying for itself, Glencore's policy to run down their coal portfolio is proving far better than a spin-off or a sale," said analyst Ben Davis at Liberum.
Davis said he based his calculations on European coal prices for delivery into Rotterdam minus the freight from Colombia. Coal prices soared to $280 per tonne in the second half of 2021 from as low as $57 last year. Davis expects coal prices to average $140 in the first half of 2022. API2
At an average production level of 24 million tonnes a year and per tonne production costs of $45, a banking source familiar with the deal put Cerrejon's EBITDA cash flow at $1.1 billion in the second half 2021.
If the deal closes as expected in the first half of 2022, Glencore would have enjoyed some 18 months of full cashflows from Cerrejon.
A top 30 shareholder at Glencore said some investors were warming to the idea of holding stocks in coal companies that pledge to run down mines responsibly without making them someone else's problem.
"At the end of the day, selling a mine doesn't make its output disappear ... The trouble for some investors is that they simply cannot hold stocks that have a coal exposure," said the shareholder who asked not to be named.
(Editing by David Evans)
((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.
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The miner bought the 66% shares in the Cerrejon thermal coal mine it didn't yet control from rivals BHP Group BHPB.L, BHP.AX and Anglo American AAL.L in June this year for an aggregate $588 million. But the red-hot market for thermal coal has made that assumption conservative after prices for the most polluting fossil fuel soared on the back of Chinese power shortages and a European gas squeeze, said insiders and analysts. "Our agreement to sell our minority shareholding in Cerrejón marks the final step in our responsible transition away from thermal coal operations as we continue to position our portfolio firmly towards supplying a wide range of future-enabling metals and minerals to our customers," Anglo American said in an emailed statement.
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The miner bought the 66% shares in the Cerrejon thermal coal mine it didn't yet control from rivals BHP Group BHPB.L, BHP.AX and Anglo American AAL.L in June this year for an aggregate $588 million. That sits well with top global miner and trader Glencore GLEN.L, whose purchase of a major coal mine in Colombia will generate a bonus of hundreds of millions of dollars before the deal has even been completed. API2 At an average production level of 24 million tonnes a year and per tonne production costs of $45, a banking source familiar with the deal put Cerrejon's EBITDA cash flow at $1.1 billion in the second half 2021.
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The miner bought the 66% shares in the Cerrejon thermal coal mine it didn't yet control from rivals BHP Group BHPB.L, BHP.AX and Anglo American AAL.L in June this year for an aggregate $588 million. That sits well with top global miner and trader Glencore GLEN.L, whose purchase of a major coal mine in Colombia will generate a bonus of hundreds of millions of dollars before the deal has even been completed. BHP and Anglo sold or spun off most of their coal assets, while Glencore has taken a divergent path and set a goal of managing the depletion of its coal mines by the mid-2040s, rather than selling them.
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The miner bought the 66% shares in the Cerrejon thermal coal mine it didn't yet control from rivals BHP Group BHPB.L, BHP.AX and Anglo American AAL.L in June this year for an aggregate $588 million. Davis expects coal prices to average $140 in the first half of 2022. If the deal closes as expected in the first half of 2022, Glencore would have enjoyed some 18 months of full cashflows from Cerrejon.
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4076.0
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2021-10-27 00:00:00 UTC
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American Airlines Group Reaches Analyst Target Price
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AAL
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https://www.nasdaq.com/articles/american-airlines-group-reaches-analyst-target-price-2021-10-27
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nan
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nan
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In recent trading, shares of American Airlines Group Inc (Symbol: AAL) have crossed above the average analyst 12-month target price of $19.25, changing hands for $19.39/share. When a stock reaches the target an analyst has set, the analyst logically has two ways to react: downgrade on valuation, or, re-adjust their target price to a higher level. Analyst reaction may also depend on the fundamental business developments that may be responsible for driving the stock price higher — if things are looking up for the company, perhaps it is time for that target price to be raised.
There are 14 different analyst targets within the Zacks coverage universe contributing to that average for American Airlines Group Inc, but the average is just that — a mathematical average. There are analysts with lower targets than the average, including one looking for a price of $7.00. And then on the other side of the spectrum one analyst has a target as high as $29.00. The standard deviation is $6.387.
But the whole reason to look at the average AAL price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes. And so with AAL crossing above that average target price of $19.25/share, investors in AAL have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $19.25 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table? Below is a table showing the current thinking of the analysts that cover American Airlines Group Inc:
RECENT AAL ANALYST RATINGS BREAKDOWN
» Current 1 Month Ago 2 Month Ago 3 Month Ago
Strong buy ratings: 3 3 3 3
Buy ratings: 0 0 0 0
Hold ratings: 6 6 7 7
Sell ratings: 2 2 2 2
Strong sell ratings: 2 2 2 2
Average rating: 2.98 2.98 2.98 2.98
The average rating presented in the last row of the above table above is from 1 to 5 where 1 is Strong Buy and 5 is Strong Sell. This article used data provided by Zacks Investment Research via Quandl.com. Get the latest Zacks research report on AAL — FREE.
The Top 25 Broker Analyst Picks of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In recent trading, shares of American Airlines Group Inc (Symbol: AAL) have crossed above the average analyst 12-month target price of $19.25, changing hands for $19.39/share. And so with AAL crossing above that average target price of $19.25/share, investors in AAL have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $19.25 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table? But the whole reason to look at the average AAL price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes.
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In recent trading, shares of American Airlines Group Inc (Symbol: AAL) have crossed above the average analyst 12-month target price of $19.25, changing hands for $19.39/share. But the whole reason to look at the average AAL price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes. And so with AAL crossing above that average target price of $19.25/share, investors in AAL have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $19.25 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table?
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And so with AAL crossing above that average target price of $19.25/share, investors in AAL have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $19.25 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table? In recent trading, shares of American Airlines Group Inc (Symbol: AAL) have crossed above the average analyst 12-month target price of $19.25, changing hands for $19.39/share. But the whole reason to look at the average AAL price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes.
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In recent trading, shares of American Airlines Group Inc (Symbol: AAL) have crossed above the average analyst 12-month target price of $19.25, changing hands for $19.39/share. But the whole reason to look at the average AAL price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes. And so with AAL crossing above that average target price of $19.25/share, investors in AAL have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $19.25 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table?
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4077.0
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2021-10-26 00:00:00 UTC
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Airlines brace for early 'long lines' when U.S. lifts travel restrictions
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AAL
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https://www.nasdaq.com/articles/airlines-brace-for-early-long-lines-when-u.s.-lifts-travel-restrictions-2021-10-26
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By David Shepardson
WASHINGTON, Oct 26 (Reuters) - Delta Air Lines DAL.N Chief Executive Ed Bastian said on Tuesday that travelers should be prepared for initial long lines when the United States lifts international travel restrictions for fully vaccinated travelers on Nov. 8.
"It's going to be a bit sloppy at first. I can assure you, there will be lines unfortunately ... but we'll get it sorted out," Bastian said at a U.S. travel event.
"We're going to have a good surge of demand but in order to keep that surge up we're going to need to make it easier and easier for people to figure out what the documentation requirements are."
U.S. President Joe Biden on Monday signed an order imposing new vaccine requirements for most foreign national air travelers and lifting severe travel restrictions on China, India and much of Europe effective Nov. 8.
Airlines will check vaccination documentation for international travelers as they currently do for COVID-19 test results.
U.S. Travel Chief Executive Roger Dow said in an interview he was concerned whether U.S. border officials would be prepared for the Nov. 8 surge.
"I think there will probably be a few hiccups," Dow said, saying the travel industry thinks the international travel increase "will be much bigger than people expect."
Homeland Security Secretary Alejandro Mayorkas said at the travel event the department is preparing for a significant domestic and international holiday air travel increase. ""I think we're going to be equipped to handle what we hope to be a real surge in holiday traffic," Mayorkas said.
Last week, American Airlines AAL.O and Southwest Airlines LUV.N and the White House said they do not think the Biden administration's executive order mandating that federal contractors require employee vaccinations by Dec. 8 will impact holiday travel or result in employees leaving.
Some airlines and industry watchers initially feared an exodus of unvaccinated airline or government employees involved in travel just before the Christmas season but airlines later said that would not happen and cited comments from the White House last week.
(Reporting by David Shepardson Editing by Chris Reese)
((David.Shepardson@thomsonreuters.com; 2028988324;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Last week, American Airlines AAL.O and Southwest Airlines LUV.N and the White House said they do not think the Biden administration's executive order mandating that federal contractors require employee vaccinations by Dec. 8 will impact holiday travel or result in employees leaving. U.S. Travel Chief Executive Roger Dow said in an interview he was concerned whether U.S. border officials would be prepared for the Nov. 8 surge. ""I think we're going to be equipped to handle what we hope to be a real surge in holiday traffic," Mayorkas said.
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Last week, American Airlines AAL.O and Southwest Airlines LUV.N and the White House said they do not think the Biden administration's executive order mandating that federal contractors require employee vaccinations by Dec. 8 will impact holiday travel or result in employees leaving. By David Shepardson WASHINGTON, Oct 26 (Reuters) - Delta Air Lines DAL.N Chief Executive Ed Bastian said on Tuesday that travelers should be prepared for initial long lines when the United States lifts international travel restrictions for fully vaccinated travelers on Nov. 8. Homeland Security Secretary Alejandro Mayorkas said at the travel event the department is preparing for a significant domestic and international holiday air travel increase.
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Last week, American Airlines AAL.O and Southwest Airlines LUV.N and the White House said they do not think the Biden administration's executive order mandating that federal contractors require employee vaccinations by Dec. 8 will impact holiday travel or result in employees leaving. By David Shepardson WASHINGTON, Oct 26 (Reuters) - Delta Air Lines DAL.N Chief Executive Ed Bastian said on Tuesday that travelers should be prepared for initial long lines when the United States lifts international travel restrictions for fully vaccinated travelers on Nov. 8. Homeland Security Secretary Alejandro Mayorkas said at the travel event the department is preparing for a significant domestic and international holiday air travel increase.
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Last week, American Airlines AAL.O and Southwest Airlines LUV.N and the White House said they do not think the Biden administration's executive order mandating that federal contractors require employee vaccinations by Dec. 8 will impact holiday travel or result in employees leaving. By David Shepardson WASHINGTON, Oct 26 (Reuters) - Delta Air Lines DAL.N Chief Executive Ed Bastian said on Tuesday that travelers should be prepared for initial long lines when the United States lifts international travel restrictions for fully vaccinated travelers on Nov. 8. Homeland Security Secretary Alejandro Mayorkas said at the travel event the department is preparing for a significant domestic and international holiday air travel increase.
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4078.0
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2021-10-26 00:00:00 UTC
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Noteworthy Tuesday Option Activity: TPB, AAL, COUP
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AAL
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https://www.nasdaq.com/articles/noteworthy-tuesday-option-activity%3A-tpb-aal-coup-2021-10-26
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Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Turning Point Brands Inc (Symbol: TPB), where a total volume of 947 contracts has been traded thus far today, a contract volume which is representative of approximately 94,700 underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 75% of TPB's average daily trading volume over the past month, of 126,190 shares. Particularly high volume was seen for the $50 strike put option expiring January 21, 2022, with 341 contracts trading so far today, representing approximately 34,100 underlying shares of TPB. Below is a chart showing TPB's trailing twelve month trading history, with the $50 strike highlighted in orange:
American Airlines Group Inc (Symbol: AAL) saw options trading volume of 201,063 contracts, representing approximately 20.1 million underlying shares or approximately 74% of AAL's average daily trading volume over the past month, of 27.2 million shares. Particularly high volume was seen for the $22 strike call option expiring November 19, 2021, with 19,924 contracts trading so far today, representing approximately 2.0 million underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $22 strike highlighted in orange:
And Coupa Software Inc (Symbol: COUP) options are showing a volume of 7,068 contracts thus far today. That number of contracts represents approximately 706,800 underlying shares, working out to a sizeable 70.1% of COUP's average daily trading volume over the past month, of 1.0 million shares. Especially high volume was seen for the $260 strike call option expiring December 17, 2021, with 710 contracts trading so far today, representing approximately 71,000 underlying shares of COUP. Below is a chart showing COUP's trailing twelve month trading history, with the $260 strike highlighted in orange:
For the various different available expirations for TPB options, AAL options, or COUP options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Particularly high volume was seen for the $22 strike call option expiring November 19, 2021, with 19,924 contracts trading so far today, representing approximately 2.0 million underlying shares of AAL. Below is a chart showing TPB's trailing twelve month trading history, with the $50 strike highlighted in orange: American Airlines Group Inc (Symbol: AAL) saw options trading volume of 201,063 contracts, representing approximately 20.1 million underlying shares or approximately 74% of AAL's average daily trading volume over the past month, of 27.2 million shares. Below is a chart showing AAL's trailing twelve month trading history, with the $22 strike highlighted in orange: And Coupa Software Inc (Symbol: COUP) options are showing a volume of 7,068 contracts thus far today.
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Below is a chart showing TPB's trailing twelve month trading history, with the $50 strike highlighted in orange: American Airlines Group Inc (Symbol: AAL) saw options trading volume of 201,063 contracts, representing approximately 20.1 million underlying shares or approximately 74% of AAL's average daily trading volume over the past month, of 27.2 million shares. Particularly high volume was seen for the $22 strike call option expiring November 19, 2021, with 19,924 contracts trading so far today, representing approximately 2.0 million underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $22 strike highlighted in orange: And Coupa Software Inc (Symbol: COUP) options are showing a volume of 7,068 contracts thus far today.
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Below is a chart showing TPB's trailing twelve month trading history, with the $50 strike highlighted in orange: American Airlines Group Inc (Symbol: AAL) saw options trading volume of 201,063 contracts, representing approximately 20.1 million underlying shares or approximately 74% of AAL's average daily trading volume over the past month, of 27.2 million shares. Particularly high volume was seen for the $22 strike call option expiring November 19, 2021, with 19,924 contracts trading so far today, representing approximately 2.0 million underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $22 strike highlighted in orange: And Coupa Software Inc (Symbol: COUP) options are showing a volume of 7,068 contracts thus far today.
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Particularly high volume was seen for the $22 strike call option expiring November 19, 2021, with 19,924 contracts trading so far today, representing approximately 2.0 million underlying shares of AAL. Below is a chart showing COUP's trailing twelve month trading history, with the $260 strike highlighted in orange: For the various different available expirations for TPB options, AAL options, or COUP options, visit StockOptionsChannel.com. Below is a chart showing TPB's trailing twelve month trading history, with the $50 strike highlighted in orange: American Airlines Group Inc (Symbol: AAL) saw options trading volume of 201,063 contracts, representing approximately 20.1 million underlying shares or approximately 74% of AAL's average daily trading volume over the past month, of 27.2 million shares.
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4079.0
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2021-10-25 00:00:00 UTC
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Travel Is Roaring Back: How Supply-Chain Disruptions Revitalized This Covid-19-Stricken Sector
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AAL
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https://www.nasdaq.com/articles/travel-is-roaring-back%3A-how-supply-chain-disruptions-revitalized-this-covid-19-stricken-0
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Usually when I gaze from my office window here in Southern California, I only see the deep, blue waters of the Pacific Ocean. Just a vast expanse of water that extends to Catalina Island in the distance.
Source: Daniel Wright98 / Shutterstock.com
But lately, every time I peer through my window, I spot dozens of container ships at anchor. That’s never been a common sight down here, 30 miles away from the port of Long Beach. But it is now, thanks to an epic logjam at every major U.S. port.
These anchored container ships are a real-time snapshot of the “supply-chain disruption” that is causing headaches for so many U.S. companies… and consumers.
Just last week, my plumber came to my house to repair a damaged gas line. He told me the repair would be no problem once he picked up a specific part. One hour later, the plumber phoned me to say that his suppliers had run out of that item and that because of supply problems, delivery would be “30 weeks out.”
He might as well have said, “infinity weeks out.” I couldn’t simply ignore a gas leak for 30 weeks. Fortunately, my resourceful plumber devised a workaround.
But the national supply-chain problem persists. When I flew over Long Beach a few days ago, I peeked out my window and counted 68 container ships on the water below — fanning out for miles from the port.
Interestingly, this problem has created a welcome opportunity for the U.S. airline industry. Because of the shipping industry’s travails, airline companies are transporting a growing volume of worldwide cargo.
What Is Louis Navellier’s Project Mastermind?
From the perspective of companies that focus on flying people from place to place, flying cargo amounts to “found money.” These newfound revenues are helping to speed the profit recovery at airline companies that operate worldwide long-haul route networks, like United (NASDAQ:UAL), American (NASDAQ:AAL) and Delta (NYSE:DAL).
Flying boxes around the world can be even more profitable than flying people… and boxes never complain about the box sitting next to them or repeatedly hit the call button to ask for another cocktail.
Most important, boxes can fly from country to country, no matter the pandemic restrictions in place. Perhaps that’s why all the major global airlines have been working to increase their cargo volumes.
As the chart below shows, the combined quarterly cargo transport revenues at five major airlines have nearly doubled over the past 12 months.
Compared with 2019 results, third-quarter cargo revenues at Delta, United and American jumped 38%, 84% and 62%, respectively. Even though these revenues represent less than 10% of the total at all three airlines, they produce healthy profits.
Earlier this week, for example, American credited its cargo business for enabling the company to turn a small gross profit for the quarter.
As Benzinga Newswire reported this week:
“American, like its competitors, is benefiting from remarkably strong demand for air cargo shipments that coincide with extreme ocean shipping delays and low inventories, coupled with a shortage of capacity, that have combined to drive cargo rates to all-time highs in many regions.”
These rising cargo revenues might catch another boost from reviving international travel. Domestic travel has recovered to pre-Covid-19 levels already, but international travel has not yet caught up.
Thanks to recently relaxed Covid-19 restrictions in the U.S. and Europe, trans-Atlantic travel bookings are surging. Trans-Pacific travel is also starting to recover, albeit at a slower pace.
The World’s Most Powerful Stocks
As United Airlines President Brett J. Hart remarked on anearnings conference callearlier this week:
“We were pleased by the announcement that the U.S. entry restrictions on travelers from Europe, U.K., India and other international locations, the so-called 212(f) restrictions, will be lifted by November 8th, and replaced by a global proof of vaccination requirement for all international visitors entering the U.S.… Since the announcement, we have seen a 35 [percentage] point increase in year-over-two-year system bookings from international point of sale agencies for travel in November and December.”
The recent surge of international flight bookings is great news — both because international flights produce higher profits than domestic flights, and because they provide additional opportunities to transport cargo.
Delta, for example, says it is focusing on “cargo-led” markets as it re-establishes its international routes. The company’s cargo revenues, according to Delta President Glen Hauenstein, “will continue to grow and enhance our future international profitability.”
Aside from cargo operations, Delta, American and United all stated that travel bookings have surged since the U.S. announced relaxed Covid-19 restrictions.
On Wednesday, United Chief Commercial Officer Andrew Nocella stated unequivocally, “In the last two weeks, we’ve seen several of our leading business indicators return to where we were in July or better.”
A few of the leading indicators Nocella cited were:
Passenger bookings for November-and-beyond travel are higher than 2019 levels.
Demand for transatlantic travel is consistent with 2019.
Domestic business demand has rebounded to pre-delta variant levels or better.
Business traffic across the Atlantic is now tracking consistently with or slightly better than domestic business traffic.
Brazilian demand is rebounding quickly.
Award booking levels have exceeded 2019 levels for the first time since the pandemic started.
“We believe these leading indicators are solid evidence of a bright outlook for United,” Nocella concluded.
Better than finding AAPL at $1.49…ORCL at 51 cents…and HD at 73 cents
Despite these promising data points and optimistic remarks, rising fuel costs offer some cause for caution. The soaring price of jet fuel is creating a new headwind for the industry.
That said, when jet fuel prices last hit their current levels around $2.35 a gallon in 2018, Delta, American and United still managed to produce combined annual profits of more than $7 billion.
High jet fuel prices are certainly no help to the airline industry, but if international travel and cargo volumes continue to increase, an industry-wide profit recovery certainly will follow.
In my Investment Report trading research service, we’ve already taken advantage of some of these opportunities — back when travel stocks were even more depressed than they are today.
But travel isn’t the only sector where we’ve been finding great opportunities in Investment Report — we’ve been zeroing-in on a few, select “megatrends,” and examining them from top to bottom to extract the best and most profitable opportunities.
Already this year, my readers have had the chance to snag 12 triple-digit and six double-digit winners (including partial and full closeouts).
And I’ve set my sights on the next megatrend for this year, next and beyond — I reveal it all in my 2021 Wealth Acceleration Summit.
Click here to join the conversation.
Regards,
Eric Fry
P.S. Earlier this week, Louis Navellier revealed the “secret ingredient” that helped him find HD at 73 cents… NKE at 39 cents… and QCOM at $2.10. And he’ll explain how he’s incorporated this “ingredient” into one of my latest initiatives — Project Mastermind — to find the market’s fastest-moving stocks. Full details here.
On the date of publication, Eric Fry did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Eric Fry is an award-winning stock picker with numerous “10-bagger” calls — in good markets AND bad. How? By finding potent global megatrends… before they take off. In fact, Eric has recommended 41 different 1,000%+ stock market winners in his career. Plus, he beat 650 of the world’s most famous investors (including Bill Ackman and David Einhorn) in a contest. And today he’s revealing his next potential 1,000% winner for free, right here.
The post Travel Is Roaring Back: How Supply-Chain Disruptions Revitalized This Covid-19-Stricken Sector 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.
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From the perspective of companies that focus on flying people from place to place, flying cargo amounts to “found money.” These newfound revenues are helping to speed the profit recovery at airline companies that operate worldwide long-haul route networks, like United (NASDAQ:UAL), American (NASDAQ:AAL) and Delta (NYSE:DAL). Better than finding AAPL at $1.49…ORCL at 51 cents…and HD at 73 cents Despite these promising data points and optimistic remarks, rising fuel costs offer some cause for caution. That said, when jet fuel prices last hit their current levels around $2.35 a gallon in 2018, Delta, American and United still managed to produce combined annual profits of more than $7 billion.
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From the perspective of companies that focus on flying people from place to place, flying cargo amounts to “found money.” These newfound revenues are helping to speed the profit recovery at airline companies that operate worldwide long-haul route networks, like United (NASDAQ:UAL), American (NASDAQ:AAL) and Delta (NYSE:DAL). The World’s Most Powerful Stocks As United Airlines President Brett J. Hart remarked on anearnings conference callearlier this week: “We were pleased by the announcement that the U.S. entry restrictions on travelers from Europe, U.K., India and other international locations, the so-called 212(f) restrictions, will be lifted by November 8th, and replaced by a global proof of vaccination requirement for all international visitors entering the U.S.… Since the announcement, we have seen a 35 [percentage] point increase in year-over-two-year system bookings from international point of sale agencies for travel in November and December.” The recent surge of international flight bookings is great news — both because international flights produce higher profits than domestic flights, and because they provide additional opportunities to transport cargo. The company’s cargo revenues, according to Delta President Glen Hauenstein, “will continue to grow and enhance our future international profitability.” Aside from cargo operations, Delta, American and United all stated that travel bookings have surged since the U.S. announced relaxed Covid-19 restrictions.
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From the perspective of companies that focus on flying people from place to place, flying cargo amounts to “found money.” These newfound revenues are helping to speed the profit recovery at airline companies that operate worldwide long-haul route networks, like United (NASDAQ:UAL), American (NASDAQ:AAL) and Delta (NYSE:DAL). As Benzinga Newswire reported this week: “American, like its competitors, is benefiting from remarkably strong demand for air cargo shipments that coincide with extreme ocean shipping delays and low inventories, coupled with a shortage of capacity, that have combined to drive cargo rates to all-time highs in many regions.” These rising cargo revenues might catch another boost from reviving international travel. The World’s Most Powerful Stocks As United Airlines President Brett J. Hart remarked on anearnings conference callearlier this week: “We were pleased by the announcement that the U.S. entry restrictions on travelers from Europe, U.K., India and other international locations, the so-called 212(f) restrictions, will be lifted by November 8th, and replaced by a global proof of vaccination requirement for all international visitors entering the U.S.… Since the announcement, we have seen a 35 [percentage] point increase in year-over-two-year system bookings from international point of sale agencies for travel in November and December.” The recent surge of international flight bookings is great news — both because international flights produce higher profits than domestic flights, and because they provide additional opportunities to transport cargo.
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From the perspective of companies that focus on flying people from place to place, flying cargo amounts to “found money.” These newfound revenues are helping to speed the profit recovery at airline companies that operate worldwide long-haul route networks, like United (NASDAQ:UAL), American (NASDAQ:AAL) and Delta (NYSE:DAL). The company’s cargo revenues, according to Delta President Glen Hauenstein, “will continue to grow and enhance our future international profitability.” Aside from cargo operations, Delta, American and United all stated that travel bookings have surged since the U.S. announced relaxed Covid-19 restrictions. Earlier this week, Louis Navellier revealed the “secret ingredient” that helped him find HD at 73 cents… NKE at 39 cents… and QCOM at $2.10.
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4080.0
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2021-10-24 00:00:00 UTC
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Standardization of travel rules key for Latin America airlines' recovery
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AAL
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https://www.nasdaq.com/articles/standardization-of-travel-rules-key-for-latin-america-airlines-recovery-2021-10-24
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By Nelson Bocanegra and Carlos Vargas
BOGOTA, Oct 24 (Reuters) - Getting standardized rules for international travelers amid the coronavirus pandemic is the biggest hurdle for Latin American airlines, with their recovery threatened by a lack of consensus among health authorities, industry leaders said on Sunday.
Passengers suffer constant delays and restrictions as they travel between countries due to differing entry requirements established to curb the spread of different strains of the coronavirus, aviation industry directors said at a conference in Bogota, Colombia.
"Standardization is vitally necessary to build confidence so people return to flying," said the Latin American and Caribbean Air Transport Association's (ALTA) chief executive, Jose Ricardo Botelho.
The lack of accord between different countries, with frequent changes to air travel rules, leads to uncertainty for passengers, airlines, and airline staff, said Copa Airlines Chief Executive Officer Pedro Heilbron.
"When you carry passengers and there are thousands of requirements, it's almost impossible that at least some passengers don't have the right paperwork," he told journalists in opening remarks at the ALTA annual conference.
Some countries even fine airlines for passengers' non-compliance with the rules, Heilbron added, though did not say which ones.
Almost a year and a half of restricted travel has put airlines and airports across the globe under severe financial strain, necessitating a more complete re-opening of travel so that the industry can recover, saving millions of jobs.
"Generally speaking there are quite a few agreements and there is relative standardization, but the big differences come from health authorities," said Lucas Rodriguez, the head Colombia's civil aviation authority's air transport office.
The need to meet new travel requirements has dented airlines' balance sheets.
The International Air Transport Association (IATA), the industry's main trade body, this month revised its estimate for airlines' net losses this year to $51.8 billion, from a previous forecast of $47.7 billion.
IATA expects airlines to lose $11.6 billion in 2022 in revenue.
(Reporting by Nelson Bocanegra and Carlos Vargas Writing by Oliver Griffin; editing by Diane Craft)
((Oliver.Griffin@thomsonreuters.com; +57 304-583-8931;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Nelson Bocanegra and Carlos Vargas BOGOTA, Oct 24 (Reuters) - Getting standardized rules for international travelers amid the coronavirus pandemic is the biggest hurdle for Latin American airlines, with their recovery threatened by a lack of consensus among health authorities, industry leaders said on Sunday. Passengers suffer constant delays and restrictions as they travel between countries due to differing entry requirements established to curb the spread of different strains of the coronavirus, aviation industry directors said at a conference in Bogota, Colombia. "Standardization is vitally necessary to build confidence so people return to flying," said the Latin American and Caribbean Air Transport Association's (ALTA) chief executive, Jose Ricardo Botelho.
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By Nelson Bocanegra and Carlos Vargas BOGOTA, Oct 24 (Reuters) - Getting standardized rules for international travelers amid the coronavirus pandemic is the biggest hurdle for Latin American airlines, with their recovery threatened by a lack of consensus among health authorities, industry leaders said on Sunday. "Standardization is vitally necessary to build confidence so people return to flying," said the Latin American and Caribbean Air Transport Association's (ALTA) chief executive, Jose Ricardo Botelho. "Generally speaking there are quite a few agreements and there is relative standardization, but the big differences come from health authorities," said Lucas Rodriguez, the head Colombia's civil aviation authority's air transport office.
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By Nelson Bocanegra and Carlos Vargas BOGOTA, Oct 24 (Reuters) - Getting standardized rules for international travelers amid the coronavirus pandemic is the biggest hurdle for Latin American airlines, with their recovery threatened by a lack of consensus among health authorities, industry leaders said on Sunday. The lack of accord between different countries, with frequent changes to air travel rules, leads to uncertainty for passengers, airlines, and airline staff, said Copa Airlines Chief Executive Officer Pedro Heilbron. The International Air Transport Association (IATA), the industry's main trade body, this month revised its estimate for airlines' net losses this year to $51.8 billion, from a previous forecast of $47.7 billion.
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By Nelson Bocanegra and Carlos Vargas BOGOTA, Oct 24 (Reuters) - Getting standardized rules for international travelers amid the coronavirus pandemic is the biggest hurdle for Latin American airlines, with their recovery threatened by a lack of consensus among health authorities, industry leaders said on Sunday. Passengers suffer constant delays and restrictions as they travel between countries due to differing entry requirements established to curb the spread of different strains of the coronavirus, aviation industry directors said at a conference in Bogota, Colombia. The lack of accord between different countries, with frequent changes to air travel rules, leads to uncertainty for passengers, airlines, and airline staff, said Copa Airlines Chief Executive Officer Pedro Heilbron.
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4081.0
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2021-10-23 00:00:00 UTC
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Travel Is Roaring Back: How Supply-Chain Disruptions Revitalized This Covid-19-Stricken Sector
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AAL
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https://www.nasdaq.com/articles/travel-is-roaring-back%3A-how-supply-chain-disruptions-revitalized-this-covid-19-stricken
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Usually when I gaze from my office window here in Southern California, I only see the deep, blue waters of the Pacific Ocean. Just a vast expanse of water that extends to Catalina Island in the distance.
Source: Daniel Wright98 / Shutterstock.com
But lately, every time I peer through my window, I spot dozens of container ships at anchor. That’s never been a common sight down here, 30 miles away from the port of Long Beach. But it is now, thanks to an epic logjam at every major U.S. port.
These anchored container ships are a real-time snapshot of the “supply-chain disruption” that is causing headaches for so many U.S. companies… and consumers.
Just last week, my plumber came to my house to repair a damaged gas line. He told me the repair would be no problem once he picked up a specific part. One hour later, the plumber phoned me to say that his suppliers had run out of that item and that because of supply problems, delivery would be “30 weeks out.”
He might as well have said, “infinity weeks out.” I couldn’t simply ignore a gas leak for 30 weeks. Fortunately, my resourceful plumber devised a workaround.
But the national supply-chain problem persists. When I flew over Long Beach a few days ago, I peeked out my window and counted 68 container ships on the water below — fanning out for miles from the port.
Interestingly, this problem has created a welcome opportunity for the U.S. airline industry. Because of the shipping industry’s travails, airline companies are transporting a growing volume of worldwide cargo.
What Is Louis Navellier’s Project Mastermind?
From the perspective of companies that focus on flying people from place to place, flying cargo amounts to “found money.” These newfound revenues are helping to speed the profit recovery at airline companies that operate worldwide long-haul route networks, like United (NASDAQ:UAL), American (NASDAQ:AAL) and Delta (NYSE:DAL).
Flying boxes around the world can be even more profitable than flying people… and boxes never complain about the box sitting next to them or repeatedly hit the call button to ask for another cocktail.
Most important, boxes can fly from country to country, no matter the pandemic restrictions in place. Perhaps that’s why all the major global airlines have been working to increase their cargo volumes.
As the chart below shows, the combined quarterly cargo transport revenues at five major airlines have nearly doubled over the past 12 months.
Compared with 2019 results, third-quarter cargo revenues at Delta, United and American jumped 38%, 84% and 62%, respectively. Even though these revenues represent less than 10% of the total at all three airlines, they produce healthy profits.
Earlier this week, for example, American credited its cargo business for enabling the company to turn a small gross profit for the quarter.
As Benzinga Newswire reported this week:
“American, like its competitors, is benefiting from remarkably strong demand for air cargo shipments that coincide with extreme ocean shipping delays and low inventories, coupled with a shortage of capacity, that have combined to drive cargo rates to all-time highs in many regions.”
These rising cargo revenues might catch another boost from reviving international travel. Domestic travel has recovered to pre-Covid-19 levels already, but international travel has not yet caught up.
Thanks to recently relaxed Covid-19 restrictions in the U.S. and Europe, trans-Atlantic travel bookings are surging. Trans-Pacific travel is also starting to recover, albeit at a slower pace.
The World’s Most Powerful Stocks
As United Airlines President Brett J. Hart remarked on anearnings conference callearlier this week:
“We were pleased by the announcement that the U.S. entry restrictions on travelers from Europe, U.K., India and other international locations, the so-called 212(f) restrictions, will be lifted by November 8th, and replaced by a global proof of vaccination requirement for all international visitors entering the U.S.… Since the announcement, we have seen a 35 [percentage] point increase in year-over-two-year system bookings from international point of sale agencies for travel in November and December.”
The recent surge of international flight bookings is great news — both because international flights produce higher profits than domestic flights, and because they provide additional opportunities to transport cargo.
Delta, for example, says it is focusing on “cargo-led” markets as it re-establishes its international routes. The company’s cargo revenues, according to Delta President Glen Hauenstein, “will continue to grow and enhance our future international profitability.”
Aside from cargo operations, Delta, American and United all stated that travel bookings have surged since the U.S. announced relaxed Covid-19 restrictions.
On Wednesday, United Chief Commercial Officer Andrew Nocella stated unequivocally, “In the last two weeks, we’ve seen several of our leading business indicators return to where we were in July or better.”
A few of the leading indicators Nocella cited were:
Passenger bookings for November-and-beyond travel are higher than 2019 levels.
Demand for transatlantic travel is consistent with 2019.
Domestic business demand has rebounded to pre-delta variant levels or better.
Business traffic across the Atlantic is now tracking consistently with or slightly better than domestic business traffic.
Brazilian demand is rebounding quickly.
Award booking levels have exceeded 2019 levels for the first time since the pandemic started.
“We believe these leading indicators are solid evidence of a bright outlook for United,” Nocella concluded.
Better than finding AAPL at $1.49…ORCL at 51 cents…and HD at 73 cents
Despite these promising data points and optimistic remarks, rising fuel costs offer some cause for caution. The soaring price of jet fuel is creating a new headwind for the industry.
That said, when jet fuel prices last hit their current levels around $2.35 a gallon in 2018, Delta, American and United still managed to produce combined annual profits of more than $7 billion.
High jet fuel prices are certainly no help to the airline industry, but if international travel and cargo volumes continue to increase, an industry-wide profit recovery certainly will follow.
In my Investment Report trading research service, we’ve already taken advantage of some of these opportunities — back when travel stocks were even more depressed than they are today.
But travel isn’t the only sector where we’ve been finding great opportunities in Investment Report — we’ve been zeroing-in on a few, select “megatrends,” and examining them from top to bottom to extract the best and most profitable opportunities.
Already this year, my readers have had the chance to snag 12 triple-digit and six double-digit winners (including partial and full closeouts).
And I’ve set my sights on the next megatrend for this year, next and beyond — I reveal it all in my 2021 Wealth Acceleration Summit.
Click here to join the conversation.
Regards,
Eric Fry
P.S. Earlier this week, Louis Navellier revealed the “secret ingredient” that helped him find HD at 73 cents… NKE at 39 cents… and QCOM at $2.10. And he’ll explain how he’s incorporated this “ingredient” into one of my latest initiatives — Project Mastermind — to find the market’s fastest-moving stocks. Full details here.
On the date of publication, Eric Fry did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Eric Fry is an award-winning stock picker with numerous “10-bagger” calls — in good markets AND bad. How? By finding potent global megatrends… before they take off. In fact, Eric has recommended 41 different 1,000%+ stock market winners in his career. Plus, he beat 650 of the world’s most famous investors (including Bill Ackman and David Einhorn) in a contest. And today he’s revealing his next potential 1,000% winner for free, right here.
The post Travel Is Roaring Back: How Supply-Chain Disruptions Revitalized This Covid-19-Stricken Sector 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.
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From the perspective of companies that focus on flying people from place to place, flying cargo amounts to “found money.” These newfound revenues are helping to speed the profit recovery at airline companies that operate worldwide long-haul route networks, like United (NASDAQ:UAL), American (NASDAQ:AAL) and Delta (NYSE:DAL). Better than finding AAPL at $1.49…ORCL at 51 cents…and HD at 73 cents Despite these promising data points and optimistic remarks, rising fuel costs offer some cause for caution. That said, when jet fuel prices last hit their current levels around $2.35 a gallon in 2018, Delta, American and United still managed to produce combined annual profits of more than $7 billion.
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From the perspective of companies that focus on flying people from place to place, flying cargo amounts to “found money.” These newfound revenues are helping to speed the profit recovery at airline companies that operate worldwide long-haul route networks, like United (NASDAQ:UAL), American (NASDAQ:AAL) and Delta (NYSE:DAL). The World’s Most Powerful Stocks As United Airlines President Brett J. Hart remarked on anearnings conference callearlier this week: “We were pleased by the announcement that the U.S. entry restrictions on travelers from Europe, U.K., India and other international locations, the so-called 212(f) restrictions, will be lifted by November 8th, and replaced by a global proof of vaccination requirement for all international visitors entering the U.S.… Since the announcement, we have seen a 35 [percentage] point increase in year-over-two-year system bookings from international point of sale agencies for travel in November and December.” The recent surge of international flight bookings is great news — both because international flights produce higher profits than domestic flights, and because they provide additional opportunities to transport cargo. The company’s cargo revenues, according to Delta President Glen Hauenstein, “will continue to grow and enhance our future international profitability.” Aside from cargo operations, Delta, American and United all stated that travel bookings have surged since the U.S. announced relaxed Covid-19 restrictions.
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From the perspective of companies that focus on flying people from place to place, flying cargo amounts to “found money.” These newfound revenues are helping to speed the profit recovery at airline companies that operate worldwide long-haul route networks, like United (NASDAQ:UAL), American (NASDAQ:AAL) and Delta (NYSE:DAL). As Benzinga Newswire reported this week: “American, like its competitors, is benefiting from remarkably strong demand for air cargo shipments that coincide with extreme ocean shipping delays and low inventories, coupled with a shortage of capacity, that have combined to drive cargo rates to all-time highs in many regions.” These rising cargo revenues might catch another boost from reviving international travel. The World’s Most Powerful Stocks As United Airlines President Brett J. Hart remarked on anearnings conference callearlier this week: “We were pleased by the announcement that the U.S. entry restrictions on travelers from Europe, U.K., India and other international locations, the so-called 212(f) restrictions, will be lifted by November 8th, and replaced by a global proof of vaccination requirement for all international visitors entering the U.S.… Since the announcement, we have seen a 35 [percentage] point increase in year-over-two-year system bookings from international point of sale agencies for travel in November and December.” The recent surge of international flight bookings is great news — both because international flights produce higher profits than domestic flights, and because they provide additional opportunities to transport cargo.
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From the perspective of companies that focus on flying people from place to place, flying cargo amounts to “found money.” These newfound revenues are helping to speed the profit recovery at airline companies that operate worldwide long-haul route networks, like United (NASDAQ:UAL), American (NASDAQ:AAL) and Delta (NYSE:DAL). The company’s cargo revenues, according to Delta President Glen Hauenstein, “will continue to grow and enhance our future international profitability.” Aside from cargo operations, Delta, American and United all stated that travel bookings have surged since the U.S. announced relaxed Covid-19 restrictions. Earlier this week, Louis Navellier revealed the “secret ingredient” that helped him find HD at 73 cents… NKE at 39 cents… and QCOM at $2.10.
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4082.0
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2021-10-22 00:00:00 UTC
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FAA lacks effective oversight of American Airlines maintenance issues -audit
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AAL
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https://www.nasdaq.com/articles/faa-lacks-effective-oversight-of-american-airlines-maintenance-issues-audit-2021-10-22-0
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nan
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nan
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By David Shepardson
WASHINGTON, Oct 22 (Reuters) - The U.S. Federal Aviation Administration (FAA) lacks effective oversight controls to ensure that American Airlines’ corrective actions for maintenance issues address root causes, a government watchdog report said on Friday.
The Transportation Department Inspector General's office said in 171 of 185 of cases sampled, FAA inspectors accepted root cause analyses by American Airlines "that did not identify the true root cause of the problem" and the agency "closed compliance actions before the air carrier implemented its corrective actions."
The FAA said it "agrees with many of the recommendations in the report and is taking steps to address them."
American Airlines said it welcomed the report. "We plan to work with the FAA to ensure we take positive action and continuously refine and improve our safety controls," an airline spokeswoman said.
The report found that in one instance American "flew an aircraft with an inoperable emergency evacuation slide for 877 days before reporting the non-compliance to FAA."
American said it reported the slide issue as soon as it was discovered as part of its maintenance program that requires intentional slide deployments. It added it "then worked with the vendor to develop an audit system."
The report said that if American Airlines had categorized the slide as a more serious issue it would have prompted different corrective actions.
The FAA did not evaluate whether American’s "risk ratings adequately captured the level of risk for these findings," the report found.
The report said "ineffective root cause analysis and the associated corrective actions may have contributed to a number of repetitive non-compliances" issues at American.
Without verifying corrective actions, "FAA cannot reasonably ensure that American Airlines is sufficiently identifying root causes and mitigating future maintenance non-compliances," the report added.
The FAA, it added, "could not verify whether the 73% of findings that American Airlines rated as 'low' or 'very low' were indeed low risk."
It also said FAA inspectors were not adequately trained on root cause analysis or how to review airline risk assessments.
(Reporting by David Shepardson; Editing by 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.
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By David Shepardson WASHINGTON, Oct 22 (Reuters) - The U.S. Federal Aviation Administration (FAA) lacks effective oversight controls to ensure that American Airlines’ corrective actions for maintenance issues address root causes, a government watchdog report said on Friday. "We plan to work with the FAA to ensure we take positive action and continuously refine and improve our safety controls," an airline spokeswoman said. Without verifying corrective actions, "FAA cannot reasonably ensure that American Airlines is sufficiently identifying root causes and mitigating future maintenance non-compliances," the report added.
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By David Shepardson WASHINGTON, Oct 22 (Reuters) - The U.S. Federal Aviation Administration (FAA) lacks effective oversight controls to ensure that American Airlines’ corrective actions for maintenance issues address root causes, a government watchdog report said on Friday. Without verifying corrective actions, "FAA cannot reasonably ensure that American Airlines is sufficiently identifying root causes and mitigating future maintenance non-compliances," the report added. The FAA, it added, "could not verify whether the 73% of findings that American Airlines rated as 'low' or 'very low' were indeed low risk."
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By David Shepardson WASHINGTON, Oct 22 (Reuters) - The U.S. Federal Aviation Administration (FAA) lacks effective oversight controls to ensure that American Airlines’ corrective actions for maintenance issues address root causes, a government watchdog report said on Friday. The Transportation Department Inspector General's office said in 171 of 185 of cases sampled, FAA inspectors accepted root cause analyses by American Airlines "that did not identify the true root cause of the problem" and the agency "closed compliance actions before the air carrier implemented its corrective actions." Without verifying corrective actions, "FAA cannot reasonably ensure that American Airlines is sufficiently identifying root causes and mitigating future maintenance non-compliances," the report added.
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By David Shepardson WASHINGTON, Oct 22 (Reuters) - The U.S. Federal Aviation Administration (FAA) lacks effective oversight controls to ensure that American Airlines’ corrective actions for maintenance issues address root causes, a government watchdog report said on Friday. Without verifying corrective actions, "FAA cannot reasonably ensure that American Airlines is sufficiently identifying root causes and mitigating future maintenance non-compliances," the report added. It also said FAA inspectors were not adequately trained on root cause analysis or how to review airline risk assessments.
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4083.0
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2021-10-22 00:00:00 UTC
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Dow, S&P 500 Log Fresh Record Highs as Earnings Season Charges On
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AAL
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https://www.nasdaq.com/articles/dow-sp-500-log-fresh-record-highs-as-earnings-season-charges-on-2021-10-22
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nan
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nan
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Both the Nasdaq and S&P 500 logged a fourth-straight win on Monday, as investors eyed a jam-packed earnings week. A lackluster gross domestic product (GDP) reading out of China, combined with a worse-than-expected U.S. industrial production decline for September, kept sentiment in check, however, and the Dow logged a loss for the day. A round of upbeat earnings reports boosted the markets on Tuesday, with the Dow scoring a triple-digit pop, while the S&P 500 and Nasdaq extended their win streaks for a fifth session. Several blue chips took the spotlight, with Travelers (TRV), Johnson & Johnson (JNJ), and Procter & Gamble (PG), all posting better-than-expected quarterly profits.
Tailwinds continued to blow in on Wednesday. The Dow surged to a fresh intraday peak and notched its second-highest close on record, while the S&P 500 walked away with its sixth-consecutive daily gain. Bitcoin (BTC) also extended its rally, surging to record highs after Paul Tudor Jones named the cryptocurrency as his preferred inflation hedge over gold. Meanwhile, the Nasdaq snapped its win streak. The Dow cooled slightly on Thursday thanks to a disappointing earnings report from IBM (IBM), but the S&P 500 took its turn in the spotlight, stringing on a seventh-straight pop and notching a record close. By midday today, it looks like stocks are taking a breather, though all three indexes are pacing for weekly wins.
Blue Chips Making Big Moves This Week
This was a big week for blue chip stocks, as earnings rolled in and a slew of analyst updates showed up in the headlines. Walt Disney (DIS) was one name analysts were paying attention to, after Barclays downgraded it to "equal weight," noting a slow-down in its streaming service. Walmart (WMT) was the recipient of more positive analyst attention, getting a boost after Goldman Sachs put the retailer on its "Conviction Buy" list. On the earnings front, IBM (IBM) took a tumble after a third-quarter revenue miss. Meanwhile, UnitedHealth (UNH) just ran into a historically bullish technical signal that might make the healthcare stock worth watching.
Airline Stocks Taking Flight After Earnings
Several travel names stepped into the earnings confessional this week. Two flight sector members in particular were United Airlines (UAL) and American Airlines (AAL). The former rose after posting a smaller-than-expected third-quarter loss, while the latter also enjoyed a top- and bottom-line beat. Meanwhile, another name tied to the economic reopening, Urban Outfitters (URBN) got a boost after Citigroup commended the stock's risk-reward profile. On the opposite side of the spectrum, pandemic-era darling Zoom Video Communications (ZM) made one analyst's radar. J.P. Morgan Securities earlier today called the tech stock's bottom, upgrading it to "overweight" from "neutral."
Last Week of October Brings Slew of High Profile Earnings
The month of October comes to an end next week, but traders will have no shortage of economic indicators to digest. Specifically, they will be sifting through a new consumer confidence index, new and pending home sales data, as well as durable and core capital goods orders. The usual round of jobless claims, the personal consumption expenditures (PCE) price index, and the employment cost index are also due. As for earnings, several big names are set to report, including 3M (MMM), Alphabet (GOOGL), Caterpillar (CAT), Chevron (CVX), Coca-Cola (KO), eBay (EBAY), Facebook (FB), Microsoft (MSFT), and Twitter (TWTR). Until then, see what this sentiment indicator could mean for the S&P 500, and why investor pessimism may have reached its peak.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Two flight sector members in particular were United Airlines (UAL) and American Airlines (AAL). A round of upbeat earnings reports boosted the markets on Tuesday, with the Dow scoring a triple-digit pop, while the S&P 500 and Nasdaq extended their win streaks for a fifth session. Bitcoin (BTC) also extended its rally, surging to record highs after Paul Tudor Jones named the cryptocurrency as his preferred inflation hedge over gold.
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Two flight sector members in particular were United Airlines (UAL) and American Airlines (AAL). Blue Chips Making Big Moves This Week This was a big week for blue chip stocks, as earnings rolled in and a slew of analyst updates showed up in the headlines. Airline Stocks Taking Flight After Earnings Several travel names stepped into the earnings confessional this week.
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Two flight sector members in particular were United Airlines (UAL) and American Airlines (AAL). A round of upbeat earnings reports boosted the markets on Tuesday, with the Dow scoring a triple-digit pop, while the S&P 500 and Nasdaq extended their win streaks for a fifth session. Blue Chips Making Big Moves This Week This was a big week for blue chip stocks, as earnings rolled in and a slew of analyst updates showed up in the headlines.
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Two flight sector members in particular were United Airlines (UAL) and American Airlines (AAL). Both the Nasdaq and S&P 500 logged a fourth-straight win on Monday, as investors eyed a jam-packed earnings week. By midday today, it looks like stocks are taking a breather, though all three indexes are pacing for weekly wins.
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4084.0
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2021-10-22 00:00:00 UTC
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Regional carrier SkyWest cancels 700 U.S. flights over technical woes
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AAL
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https://www.nasdaq.com/articles/regional-carrier-skywest-cancels-700-u.s.-flights-over-technical-woes-2021-10-22
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nan
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nan
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Releads with flights resumed, details
WASHINGTON, Oct 21 (Reuters) - U.S. regional air carrier SkyWest Airlines SKYW.O cancelled about 700 flights because of an internal computer issue that crippled operations for five hours before it was resolved, the airline said on Thursday.
SkyWest provides regional service for key operators such as American Airlines AAL.O, United Airlines UAL.N, Alaska Airlines ALK.N and Delta Air Lines DAL.N.
A spokeswoman for SkyWest said the schedule changes included flight "cancellations into tomorrow morning, as we work to get crews and aircraft into position."
SkyWest added it was working "to return to normal operations as quickly as possible."
SkyWest confirmed the problem was a "server issue" that affected operations for about five hours.
Earlier, United Airlines said on its website that SkyWest was "experiencing a server outage that has impacted multiple airlines."
Aviation website FlightAware showed SkyWest flights beginning to resume late on Thursday.
(Reporting by David Shepardson; Editing by Christian Schmollinger and Clarence Fernandez)
((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.
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SkyWest provides regional service for key operators such as American Airlines AAL.O, United Airlines UAL.N, Alaska Airlines ALK.N and Delta Air Lines DAL.N. Releads with flights resumed, details WASHINGTON, Oct 21 (Reuters) - U.S. regional air carrier SkyWest Airlines SKYW.O cancelled about 700 flights because of an internal computer issue that crippled operations for five hours before it was resolved, the airline said on Thursday. A spokeswoman for SkyWest said the schedule changes included flight "cancellations into tomorrow morning, as we work to get crews and aircraft into position."
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SkyWest provides regional service for key operators such as American Airlines AAL.O, United Airlines UAL.N, Alaska Airlines ALK.N and Delta Air Lines DAL.N. Releads with flights resumed, details WASHINGTON, Oct 21 (Reuters) - U.S. regional air carrier SkyWest Airlines SKYW.O cancelled about 700 flights because of an internal computer issue that crippled operations for five hours before it was resolved, the airline said on Thursday. Aviation website FlightAware showed SkyWest flights beginning to resume late on Thursday.
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SkyWest provides regional service for key operators such as American Airlines AAL.O, United Airlines UAL.N, Alaska Airlines ALK.N and Delta Air Lines DAL.N. Releads with flights resumed, details WASHINGTON, Oct 21 (Reuters) - U.S. regional air carrier SkyWest Airlines SKYW.O cancelled about 700 flights because of an internal computer issue that crippled operations for five hours before it was resolved, the airline said on Thursday. Earlier, United Airlines said on its website that SkyWest was "experiencing a server outage that has impacted multiple airlines."
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SkyWest provides regional service for key operators such as American Airlines AAL.O, United Airlines UAL.N, Alaska Airlines ALK.N and Delta Air Lines DAL.N. Releads with flights resumed, details WASHINGTON, Oct 21 (Reuters) - U.S. regional air carrier SkyWest Airlines SKYW.O cancelled about 700 flights because of an internal computer issue that crippled operations for five hours before it was resolved, the airline said on Thursday. A spokeswoman for SkyWest said the schedule changes included flight "cancellations into tomorrow morning, as we work to get crews and aircraft into position."
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4085.0
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2021-10-22 00:00:00 UTC
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FAA lacks effective oversight of American Airlines maintenance issues -- audit
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AAL
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https://www.nasdaq.com/articles/faa-lacks-effective-oversight-of-american-airlines-maintenance-issues-audit-2021-10-22
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nan
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nan
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WASHINGTON, Oct 22 (Reuters) - The U.S. Federal Aviation Administration (FAA) lacks effective oversight controls to ensure American Airlines’ corrective actions for maintenance issues address root causes, a government watchdog report said Friday.
The Transportation Department Inspector General's office said in 171 of 185 of cases sampled, FAA inspectors accepted root cause analyses by American Airlines "that did not identify the true root cause of the problem" and the agency "closed compliance actions before the air carrier implemented its corrective actions."
(Reporting by David Shepardson)
((David.Shepardson@thomsonreuters.com; 2028988324;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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WASHINGTON, Oct 22 (Reuters) - The U.S. Federal Aviation Administration (FAA) lacks effective oversight controls to ensure American Airlines’ corrective actions for maintenance issues address root causes, a government watchdog report said Friday. The Transportation Department Inspector General's office said in 171 of 185 of cases sampled, FAA inspectors accepted root cause analyses by American Airlines "that did not identify the true root cause of the problem" and the agency "closed compliance actions before the air carrier implemented its corrective actions." (Reporting by David Shepardson) ((David.Shepardson@thomsonreuters.com; 2028988324;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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WASHINGTON, Oct 22 (Reuters) - The U.S. Federal Aviation Administration (FAA) lacks effective oversight controls to ensure American Airlines’ corrective actions for maintenance issues address root causes, a government watchdog report said Friday. The Transportation Department Inspector General's office said in 171 of 185 of cases sampled, FAA inspectors accepted root cause analyses by American Airlines "that did not identify the true root cause of the problem" and the agency "closed compliance actions before the air carrier implemented its corrective actions." (Reporting by David Shepardson) ((David.Shepardson@thomsonreuters.com; 2028988324;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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WASHINGTON, Oct 22 (Reuters) - The U.S. Federal Aviation Administration (FAA) lacks effective oversight controls to ensure American Airlines’ corrective actions for maintenance issues address root causes, a government watchdog report said Friday. The Transportation Department Inspector General's office said in 171 of 185 of cases sampled, FAA inspectors accepted root cause analyses by American Airlines "that did not identify the true root cause of the problem" and the agency "closed compliance actions before the air carrier implemented its corrective actions." (Reporting by David Shepardson) ((David.Shepardson@thomsonreuters.com; 2028988324;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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WASHINGTON, Oct 22 (Reuters) - The U.S. Federal Aviation Administration (FAA) lacks effective oversight controls to ensure American Airlines’ corrective actions for maintenance issues address root causes, a government watchdog report said Friday. The Transportation Department Inspector General's office said in 171 of 185 of cases sampled, FAA inspectors accepted root cause analyses by American Airlines "that did not identify the true root cause of the problem" and the agency "closed compliance actions before the air carrier implemented its corrective actions." (Reporting by David Shepardson) ((David.Shepardson@thomsonreuters.com; 2028988324;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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4086.0
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2021-10-21 00:00:00 UTC
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American Airlines Q3 Results Better Than Estimates
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AAL
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https://www.nasdaq.com/articles/american-airlines-q3-results-better-than-estimates-2021-10-21
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nan
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nan
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(RTTNews) - American Airlines Group Inc. (AAL) said it flew 48 million passengers during the third-quarter, more than any other U.S. airline. Excluding special items, the company recorded its smallest loss since pandemic began. The company noted that its recovery took a pause in the third quarter due to the delta variant of COVID-19. However, total revenue increased 20% sequentially on 12% increase in capacity.
Looking forward, the company said it will continue to match forward capacity with observed bookings trends. Based on current trends, American Airlines expects fourth-quarter capacity to be down approximately 11% to 13% compared to the fourth quarter of 2019. Fourth-quarter total revenue is projected to be down approximately 20% compared to the fourth quarter of 2019.
Excluding net special items, loss per share was $0.99 compared to a loss of $5.54, prior year. On average, 17 analysts polled by Thomson Reuters expected the company to report a loss per share of $1.04, for the quarter. Analysts' estimates typically exclude special items. Excluding net special items, net loss was $641 million, for the quarter.
Net income was $169 million or $0.25 per share, compared to a loss of $2.40 billion or $4.71 per share, previous year. The company recognized $1.04 billion of net special credits before the effect of taxes in the third quarter of 2021 principally related to the financial assistance received pursuant to Payroll Support Program Agreements with the U.S. Department of Treasury.
Total operating revenues increased to $8.97 billion from $3.17 billion, prior year. Analysts expected revenue of $8.94 billion, for the quarter. Passenger revenue was $7.96 billion compared to $2.54 billion.
American Airlines Group ended the third quarter with approximately $18 billion of total available liquidity, after prepayment of $950 million spare parts term loan during the quarter.
Shares of American Airlines Group were up 1% in pre-market trade on Thursday.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - American Airlines Group Inc. (AAL) said it flew 48 million passengers during the third-quarter, more than any other U.S. airline. Based on current trends, American Airlines expects fourth-quarter capacity to be down approximately 11% to 13% compared to the fourth quarter of 2019. On average, 17 analysts polled by Thomson Reuters expected the company to report a loss per share of $1.04, for the quarter.
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(RTTNews) - American Airlines Group Inc. (AAL) said it flew 48 million passengers during the third-quarter, more than any other U.S. airline. Based on current trends, American Airlines expects fourth-quarter capacity to be down approximately 11% to 13% compared to the fourth quarter of 2019. Excluding net special items, loss per share was $0.99 compared to a loss of $5.54, prior year.
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(RTTNews) - American Airlines Group Inc. (AAL) said it flew 48 million passengers during the third-quarter, more than any other U.S. airline. Excluding net special items, loss per share was $0.99 compared to a loss of $5.54, prior year. Excluding net special items, net loss was $641 million, for the quarter.
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(RTTNews) - American Airlines Group Inc. (AAL) said it flew 48 million passengers during the third-quarter, more than any other U.S. airline. Based on current trends, American Airlines expects fourth-quarter capacity to be down approximately 11% to 13% compared to the fourth quarter of 2019. Excluding net special items, net loss was $641 million, for the quarter.
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4087.0
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2021-10-21 00:00:00 UTC
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SkyWest cancels 700 U.S. flights over technical issue
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AAL
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https://www.nasdaq.com/articles/skywest-cancels-700-u.s.-flights-over-technical-issue-2021-10-22
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WASHINGTON, Oct 21 (Reuters) - U.S. regional air carrier SkyWest Airlines SKYW.O said Thursday it canceled about 700 flights because of an internal technical issue that was resolved late Thursday.
A spokeswoman for SkyWest, which provides regional service for American Airlines AAL.O, United Airlines UAL.N, Alaska Airlines ALK.N and Delta Air Lines DAL.N, said the flights impacted include "cancellations into tomorrow morning as we work to get crews and aircraft into position." SkyWest added it was working "to return to normal operations as quickly as possible."
(Reporting by David Shepardson; Editing by Christian Schmollinger)
((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.
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A spokeswoman for SkyWest, which provides regional service for American Airlines AAL.O, United Airlines UAL.N, Alaska Airlines ALK.N and Delta Air Lines DAL.N, said the flights impacted include "cancellations into tomorrow morning as we work to get crews and aircraft into position." WASHINGTON, Oct 21 (Reuters) - U.S. regional air carrier SkyWest Airlines SKYW.O said Thursday it canceled about 700 flights because of an internal technical issue that was resolved late Thursday. SkyWest added it was working "to return to normal operations as quickly as possible."
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A spokeswoman for SkyWest, which provides regional service for American Airlines AAL.O, United Airlines UAL.N, Alaska Airlines ALK.N and Delta Air Lines DAL.N, said the flights impacted include "cancellations into tomorrow morning as we work to get crews and aircraft into position." WASHINGTON, Oct 21 (Reuters) - U.S. regional air carrier SkyWest Airlines SKYW.O said Thursday it canceled about 700 flights because of an internal technical issue that was resolved late Thursday. (Reporting by David Shepardson; Editing by Christian Schmollinger) ((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.
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A spokeswoman for SkyWest, which provides regional service for American Airlines AAL.O, United Airlines UAL.N, Alaska Airlines ALK.N and Delta Air Lines DAL.N, said the flights impacted include "cancellations into tomorrow morning as we work to get crews and aircraft into position." WASHINGTON, Oct 21 (Reuters) - U.S. regional air carrier SkyWest Airlines SKYW.O said Thursday it canceled about 700 flights because of an internal technical issue that was resolved late Thursday. (Reporting by David Shepardson; Editing by Christian Schmollinger) ((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.
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A spokeswoman for SkyWest, which provides regional service for American Airlines AAL.O, United Airlines UAL.N, Alaska Airlines ALK.N and Delta Air Lines DAL.N, said the flights impacted include "cancellations into tomorrow morning as we work to get crews and aircraft into position." WASHINGTON, Oct 21 (Reuters) - U.S. regional air carrier SkyWest Airlines SKYW.O said Thursday it canceled about 700 flights because of an internal technical issue that was resolved late Thursday. SkyWest added it was working "to return to normal operations as quickly as possible."
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4088.0
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2021-10-21 00:00:00 UTC
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American Airlines Group (AAL) Q3 2021 Earnings Call Transcript
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AAL
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https://www.nasdaq.com/articles/american-airlines-group-aal-q3-2021-earnings-call-transcript-2021-10-21
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Image source: The Motley Fool.
American Airlines Group (NASDAQ: AAL)
Q3 2021 Earnings Call
Oct 21, 2021, 8:30 a.m. ET
Contents:
Prepared Remarks
Questions and Answers
Call Participants
Prepared Remarks:
Operator
Good morning, and welcome to the American Airlines Group third-quarter 2021earnings conference call Today's call is being recorded. [Operator instructions] And now I would like to turn the conference over to your moderator, head of investor relations, Mr. Dan Cravens.
Dan Cravens -- Moderator, Head of Investor Relations
Thanks, Sarah, and good morning, everyone, and welcome to the American Airlines Group third-quarter 2021earnings conference call On the call this morning, we have Doug Parker, chairman and CEO; Robert Isom, president; and Derek Kerr, chief financial officer. Also on the call and on the line as well for our Q&A session are several of our senior execs, including Maya Leibman, chief information officer; Steve Johnson, our EVP of corporate affairs; Elise Eberwein, our EVP of people and global engagement; and Vasu Raja, our chief revenue officer. Like we normally do, Doug will start the call with an overview of our quarter and will update to the actions we've taken during the pandemic.
Robert will then follow some remarks about our operations, commercial and other strategic initiatives. After Robert's remarks, Derek will follow with the details on the quarter and our operating plans going forward. After Derek's comments, we will open the call for analyst questions, and lastly, questions from the media. To get in as many questions as possible, please limit yourself to one question and a follow-up.
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Before we begin, we must state that today's call does contain forward-looking statements, including statements concerning future revenues, costs, forecasts of capacity and fleet plan. These statements represent our predictions and expectations as to future events, but there are numerous risks and uncertainties that could cause actual results to differ from those projected. Information about some of these risks and uncertainties can be found in our earnings press release issued this morning and our Form 10-Q for the quarter ended September 30, 2021. In addition, we will be discussing certain non-GAAP financial measures this morning, which exclude the impact of unusual items.
A reconciliation of those GAAP numbers to the GAAP financial measures is included in the earnings release, and that can be found in the investor relations section of our website. A webcast of this call will also be available on the website. The information that we're giving you on the call is as of today's date, and we undertake no obligation to update the material subsequently. Thanks, again, for joining us.
At this point, I'll turn the call over to our chairman and CEO, Doug Parker.
Doug Parker -- Chairman and Chief Executive Officer
Thank you, Dan, and thank you, everyone, for being with us. Good morning. So our third quarter started out very strong. Our domestic business revenue, which has climbed from 27% of our 2019 levels in March to 52% in June, jumped even more in July.
It actually jumped to 64%, as companies began to return to work and their employees began to return to the skies. And as a result, we at American produced a profit in the month of July. But in the spur of Delta variant led to a rebound in pandemic fears, of course. Companies deferred return to work plans.
And that domestic revenue -- the domestic business revenues go back to 57% of 2019 in August and 47% in September. Now I know some people find that trend discouraging, but we actually think it's encouraging. The spike in business revenue in the month of July shows that business travel does want to return. There is enormous pent-up demand.
And once this pandemic is behind us, it should resume its prior rapid trajectory to recovery. And as to highlight all it gets reflected in the financial results that profit in July, followed by larger losses in August and September, added up to a cumulative loss. On a GAAP basis, we actually reported a net profit of $169 million. But when we exclude net special items, we recorded a net loss of $641 million.
And while we, obviously, don't like reporting losses, this is our smallest quarterly loss since the pandemic began in early 2020. What we're really proud of is how well the American Airlines team is performing. No one is managing through this pandemic and into the recovery better than the people at American, and it shows in the results. At a time when airlines are struggling to build back service in response to demand, no one has built back further and faster than American.
We flew greater than 80% of our 2019 capacity in the third quarter, while our large competitors have restored only 70%. As a result, we flew 13% more seat miles in the quarter than our next closest competitor. And our team safely transported more than 48 million passengers in the quarter. And our team did this while doing an excellent job of taking care of our customers.
And we struggled with growth ourselves as we entered the quarter, but we responded quickly and aggressively. We ended the quarter flying by far the largest airline of the world with the best September operational performance in American's history. That great performance by our team has led to strong customer acceptance, as evidenced by our industry-leading passenger counts and our revenue trends. For the quarter, revenues were significantly improved over 2020 and were down 25% in the third quarter versus the same period in 2019, whereas they were down 37.5% in the second quarter on the same year over two-year basis.
And notably, our passenger unit revenues in the quarter were down 10% versus 2019 versus 12% declines of the other large international U.S. carriers despite our higher capacity production. On the costs front, we've reshaped our network, simplified our fleet and built operational and cost efficiencies into the business that will serve us well for years to come. We accelerated the retirement of more than 150 older aircraft.
American continues to operate the youngest and most fuel-efficient fleet of the U.S. network carriers. And importantly, we've actioned more than $1.3 billion of permanent annual cost reductions into the business through our Green Flag initiatives. And as we've navigated through the crisis, we've been careful to think and look long term.
We've announced a series of strategic relationships with other airlines around the world that strengthened the American network, adding additional utility to our customers and long-term value for our shareholders. The most notable of these are our Northeast Alliance with JetBlue and our West Coast International Alliance with Alaska, which we continue to implement and grow in the third quarter. Looking forward, we feel great about where American is positioned. Given the deferred business demand and the recent rise in fuel prices, the fourth quarter will be challenging, but that's a near-term issue finding a longer-term bullish trend.
We're encouraged by the upside that exists in demand for business and international travel. And our confidence is reinforced by the incredible work the American Airlines team has done throughout this pandemic and continues to do today. And we're particularly excited about the future that lies ahead for American and our team. With that, I'll turn it over to Robert.
Robert Isom -- President
Thanks, Doug, and good morning, everyone. I want to start by thanking the entire American Airlines team for their efforts in the third quarter and throughout the pandemic. Our airline continues to succeed, thanks to the hard work of our team. As Doug mentioned, this summer represented the largest operational ramp-up in the history of American.
As we build back the operations, much like other businesses, we have managed through supply chain constraints, vendor and staffing challenges, constantly changing travel restrictions and a lot more. Through it all, we operated more flights and carried more customers than any other U.S. airline, more than tripling our daily departures from May 2020, which was the low point of our schedule. And we're pleased with where we are.
American recorded our most reliable September since the merger based on completion factor, on-time departures and on-time arrivals. We'll continue to focus on delivering a safe and reliable operations and continuing the momentum as we further scale our operation and welcome back even more customers. Now I want to acknowledge the efforts of the American team in the third quarter in support of the U.S. Civil Reserve Air Fleet program.
It was a tremendous honor for American to aid in the effort to bringing more than 5,000 evacuees from Afghanistan to the U.S., as well as hundreds of members of the U.S. military. That work included working with the Customs and Border Protection to open our Philadelphia facilities as a welcoming center for four nationals. We're grateful to our team members throughout the airline and from all over the world who came together to support American's craft activation.
As we reported this morning, our third-quarter total revenue was approximately $9 billion, up $1.5 billion from the second quarter. This improvement was driven by our passenger revenue recovery, which increased by more than 20% sequentially from the second quarter on a 12% increase in available seat miles. Overall passenger revenue in the third quarter was 72% of what was in the third quarter of 2019, which is up 13 points sequentially in the second quarter. Domestic leisure revenue has now returned to pre-pandemic levels at 98% of 2019 levels in the third quarter.
As Doug described, business revenue growth stalled in the quarter and finished flat in the second quarter at around 50% of 2019 levels. Given the recent booking trends, with the Delta variant subsiding and everything we're seeing and hearing from our customers, we're planning for a robust peak travel period in the fourth quarter, and we're excited about the prospects for 2022. And here's why. We expect that domestic leisure revenues will surpass 2019 levels in the fourth quarter and continue that trend throughout 2022.
Short haul international revenues should follow that same pattern. And recent trends show that corporate bookings month to date have improved significantly and are accelerating like they were earlier in the year before the Delta variant and associated restrictions were imposed. Our largest corporate customers tell us they'll be returning more fully to the office and travel as we move out of 2021. And because of that, we continue to expect a full rebound of business revenue to 2019 levels on a monthly basis by the end of 2022.
And speaking regularly with our top corporate customers, almost all have resumed domestic U.S. business travel, to some extent. As companies return to the office and lift travel restrictions, we see continued growth in corporate travel. Industrials, healthcare and professional services continue to lead that recovery.
Long-haul international travel, particularly long-haul business travel, while the slowest to return, is starting to come back. Right now, almost two-thirds of our corporate customers are traveling internationally for at least essential business. And we expect international travel to improve significantly with easing of cross-border requirements. And we're encouraged by the recent news about the U.S.
government easing international travel and entry restrictions starting in November. Following the White House announcement, we saw an immediate increase in bookings in several of our key international markets. Overnight, we saw a 66% increase in bookings to the U.K., a 40% increase to core Europe and a 74% increase to Brazil. Clearly, there's significant pent-up demand for travel to and from the U.S.
and many customers are eager to return to travel when it's permitted. Now just focusing on the fourth quarter, we expect total revenue will recover to approximately 80% of 2019 levels, up approximately 5 points sequentially versus the third quarter, with the strongest performance in domestic and short-haul international markets. We continue to make significant strides in building the large global network in the industry and reconnecting with our customers. Our partnership with JetBlue and Alaska are delivering tremendous benefits for customers and enabling new flying that otherwise wouldn't be possible.
More than 715,000 customers were able to travel across our networks during the quarter, thanks to these innovative partnerships. Together, American and JetBlue will operate more than 700 daily flights from New York to Boston -- New York and Boston this winter, including nearly 50 international destinations out of JFK. We also continued to create a seamless experience for our customers, including rolling out reciprocal lead benefits for AAdvantage and True Blue Mosaic members. And we expect to launch miles redemption on JetBlue very soon.
Our loyalty program continues to demonstrate its attractiveness to our customers and partners. New member acquisitions in the third quarter exceeded 2019 levels despite the airline flying a significantly smaller schedule. As our customers continue to engage with AAdvantage, our co-brand cash payments were essentially fully recovered at 96% in the third quarter versus the same period in 2019. This is up from just 78% in the second quarter on the same basis.
We expect this trend to continue as the network returns to a more normalized level. On the ESG front, during the quarter, American became the first North American airline to commit to developing a science-based target for reducing greenhouse gas emissions by 2035. We also agreed to turn to purchase more carbon-neutral sustainable aviation fuel. American also became an anchor partner to Breakthrough Energy Catalyst.
And we've committed to invest $100 million in a groundbreaking collaborative effort to accelerate the clean energy technologies necessary for achieving a net-zero economy by 2050. We're excited about this work and what it will mean for the future of aviation and the acceleration and adoption of critical next-generation clean technologies across all industries. So in summary, while the Delta variant has shifted the time line to the recovery, we remain very bullish on the return of demand, and we feel great about how we're positioned, thanks to the hard work and dedication of the American Airlines team. And with that, I'll turn it over to Derek.
Derek Kerr -- Chief Financial Officer
Thanks, Robert, and good morning, everyone. Before I begin my remarks, I would also like to thank the American Airlines team for their hard work during the quarter. Their continued resilience in the face of uncertainty due to the Delta variant is commendable. This morning, we reported a third-quarter GAAP net profit of $169 million or $0.25 per diluted share.
Excluding net special items, we reported a net loss of $641 million or a loss of $0.99 per share. As Doug mentioned in his remarks, this was our strongest quarter since the pandemic began. As we have discussed in the past, as we always expected, the recovery would be unpredictable, and our third-quarter results reflect this. Despite the Delta variant-related volatility in demand and revenue trends that Robert discussed, our financial performance improved from the second quarter, but fell short of our initial expectations that we outlined in our lastearnings call
While the slowdown in demand was clearly disappointing, it is important to note that the trajectory of our results continues to be positive. In fact, even with the drop-off in bookings from the Delta variant and rising oil prices, our third-quarter pre-tax earnings, excluding net special items, improved by nearly $600 million sequentially versus the second quarter. This makes it even clearer to us that the steps we are taking over the past 18 months are working. As we have navigated the pandemic, we've built back our network in a way that would keep our capacity aligned with demand while giving us the ability to be flexible as conditions change.
We've also worked to keep our controllable costs down and have actioned $1.3 billion in permanent annual cost initiatives this year alone. Based on our results, it's clear these actions are paying off, as our third-quarter CASM, including fuel and net special items, was up just 10.5% versus the same period in 2019 despite flying approximately 20% less capacity. On the fleet side, we moved swiftly to retire older aircraft and accelerate our fleet harmonization project. Our 737 retrofit program was completed in May.
And we continue to expect our A321 aircraft to be complete by early next year, a full year ahead of our original schedule. In addition to the customer benefits of larger overhead bins, in-seat power and streaming in-flight entertainment, these aircraft will generate more revenue and allow us to connect to more customers over our network. They will also provide a unit cost tailwind as we build back our network. With respect to our wide-body aircraft, we continue to work with Boeing to finalize the timing of our delayed 787-8 deliveries that were expected to arrive in 2021.
In the meantime, due to the continued uncertainty in the delivery schedule, we have proactively removed these aircraft from our winter schedule to minimize potential passenger disruption. And I'd also like to note that these delays have had an impact on our fourth-quarter CASM since we built the cost structure to fly these aircraft during the fourth quarter. We ended the quarter with approximately $18 billion of total available liquidity, which reflects the $950 million prepayment of our spare parts term loan made in July and approximately 440 -- $649 million of scheduled debt payments made during the quarter. The scheduled debt paydown unencumbered 20 Boeing 777 aircraft further bolstering our unencumbered asset base to $3.8 billion and our first lien capacity to more than $8.4 billion.
As we look ahead, we feel confident with -- we have enough liquidity to allow American to navigate the choppiness of the recovery. Because of this choppiness, we will continue to keep liquidity at elevated levels in the near to medium term, with a plan to step down our target liquidity to approximately $10 billion to $12 billion at some point next year when we are confident the recovery has taken hold and we have returned to sustained profitability. The deleveraging of American's balance sheet remains a priority, and we are committed to significant, steady and continuous debt reduction in the years ahead. Even with the slower-than-expected recovery observed during the third quarter, we remain on track with our target of reducing overall debt levels by $15 billion by the end of 2025.
$10 billion of this will be achieved through amortization of debt and is net of new financing. Importantly, these debt reduction targets are based on a plan that assumes future deliveries are financed. Should we elect to use cash in lieu of financing aircraft, that decision would contribute to deleveraging and further accelerate the time line to achieve these targets. Of the incremental $5 billion, nearly $1 billion has already been actioned with the prepayment of the spare parts term loan we announced on the last call.
As we look ahead, we will continue to focus our efforts on prepayable debt, which currently represents approximately 30% of our total debt obligations. In addition to deleveraging our balance sheet, this plan will allow us to smooth our near-term maturity towers and free up high-quality collateral. Assuming this level of debt reduction and continued margin improvement, our plan is targeted to result in the best credit metrics in the history of post-merger American by the end of the four-year period. Looking into the fourth quarter, the delay in the return of corporate travel and rising fuel prices will put pressure on our margins relative to the third quarter.
We expect our capacity to be down approximately 11% to 13% versus the fourth quarter of 2019. Based on current demand assumptions and capacity plans, we continue to expect a slight sequential increase in our revenues and expect total revenues to be down approximately 20% versus the fourth quarter of 2019. In total, we expect the pre-tax margin, excluding net special items, of between negative 16% and negative 18%. For the full year, we -- for the full year, our projected debt principal payments are expected to be $4.4 billion.
This includes the $750 million payment of spare parts term loan and the $550 million prepayment of the term loan with the U.S. Treasury that was completed earlier this year. We have $612 million in scheduled debt principal payments in the fourth quarter. With respect to capital expenditures, we expect full-year 2021 capex to remain minimal, with non-aircraft capex at approximately $900 million and net aircraft capex, including predelivery payments, remaining an inflow of $900 million.
We are still in the early stages of building our operating plans for 2022. And we'll have more to say on what our capacity and cost outlook will look like on our nextearnings call But at a high level, based on the demand trends we see today along with the feedback from our corporate customers, we expect to slowly increase our capacity throughout the year and to have full-year capacity very near 2019 levels. This, of course, is subject to the future demand environment and we will always retain the ability to adapt if demand conditions warrant.
Lastly, I know a lot of investors are concerned about inflationary pressure in 2022 and beyond. We'll know more once we finalized our 2022 budget, but we do see pressures in fuel prices, hiring and training for both new hires and existing crews as we ramp up our operation, including on the regional side, where we recently announced the pilot retention program. We are also seeing increased starting wages for certain regional groups, including vendors. Even with these pressures, our fleet simplification strategy enables higher aircraft utilization and higher average gauge, both of which will help offset some of these unit cost pressures.
As I said earlier, we will share more specific details on these impacts to our cost structure as our 2022 plan on our nextearnings callin January. So in conclusion, our team continues to do an amazing job of managing through the uncertainty, maintaining a strong liquidity position and driving efficiencies throughout the organization. And we are well-positioned for the future. So with that, I will open up the line for analyst questions.
Questions & Answers:
Operator
Thank you. [Operator instructions] Our first question comes from the line of Jamie Baker with J.P. Morgan. Your line is now open.
Jamie Baker -- J.P. Morgan -- Analyst
Hey, good morning, everybody. So Doug, I think it was like three or four years ago, you had a slide at our conference, it was entitled "there they go again." It was a list of airline behaviors that you were wanting investors to keep an eye out for. It was a cool slide actually. So two bullets on that stood out: expanding service to markets that don't touch a hub and establishing new hubs.
Could you help frame the Seattle expansion against that slide? It's not like the slide was written in stone, and you carried it down from Mount Sinai or anything. I'm just having trouble reconciling it in the current environment.
Doug Parker -- Chairman and Chief Executive Officer
Sure. I'll do it at a high level and then Vasu can chime in with more details if you'd like, Jamie. So yes, look, that's not a new hub is the answer. There's already a hub there.
It's Alaska's, near our partner. And we are simply making that hub stronger by adding -- by having alliance with Alaska, whereby we can do things they can't do or they wouldn't be able to do without an investment that wouldn't make sense by buying international because we have international aircraft. And they can do things that we can't do, which is feed those flights with their already existing Seattle hub. So it's not a new hub.
If it were yet, if you see that be concerned. Happy to note that hasn't happened since we put that there. So anyway, that's the distinction.
Vasu Raja -- Chief Revenue Officer -- Analyst
Yes. Jamie, this is Vasu. I'll add to that. Actually, we see Seattle as being really intellectually consistent with that.
And for us, it's pretty simple, that we go create value for customers by being relevant and being relevant to the biggest markets. And in order to go create a legitimate, valuable and profitable international network, we need to be able to launch flights for international markets. And for us, historically, on the West Coast, we've had a very, very small presence, most mainly in the Pacific Northwest, where we've had almost no presence. With this, which is a very creative deal, what we're doing is we're flying things like Seattle to Heathrow or Seattle to Bangalore, all of which feed off of that huge local market that Alaska has cultivated.
It draws from the connectivity of the Seattle hub. And we've been really encouraged with the results, not just across the West Coast, but really across the system. Alaska Airlines is increasingly emerging as one of if not our largest codeshare partner, and we are seeing a huge customer benefit all up and down the West Coast. Actually, as we look at it, we are creating close to 300,000 -- about 300,000 customers are now able to experience AA in Alaska, where before, they had no competitive option or they had one or two competitive options in the marketplace.
And the market is responding. We've set records for AAdvantage enrollments, but the two markets where our enrollments are growing the most are all the markets in the West Coast partnership, everything from San Diego, north to Seattle, and the other ones are New York and Boston. So we see it actually being really consistent and a really effective and wise way to go and develop a level of network comprehensiveness that would be too impossible to do on own.
Jamie Baker -- J.P. Morgan -- Analyst
OK, that's really helpful. And then, a follow-up, this one, a quick one on fuel, maybe for Robert or Derek. A question I repeatedly receive is why haven't management adjusted capacity to account for $2.50 jet kero. And I know you can't speak for the industry.
But for American, is there a certain period of time that you need to be convinced that higher fuel is gonna be sustained? Is there just too much uncertainty around 2022 revenue to be making capacity decisions today? Just looking for some color on how you would answer the question that I'm getting every day and I imagine my competitors are as well. Thanks in advance.
Doug Parker -- Chairman and Chief Executive Officer
Jamie, I'll go first level because you and I have been doing this a long time. Look, when oil prices move this quickly, it's really hard to have responses that what's happened here. It's run up very quickly. And we're already selling all the capacity that's out there.
So what I know is, what I believe is, and it's been the history in our business, if this is a new normal, you will see adjustments. You'll see adjustments in capacity, which will result in changes in pricing. It just don't happen that quickly. And it also takes a while for everyone to come to the conclusion that this is real.
But on a 2014 was a pretty good year in the airline business and Brent averaged $100 a barrel. So this is -- we know this is -- we'll adapt if this is the new normal. But right now, in the very near term, it's hard to adapt. Robert?
Robert Isom -- President
Doug, this will come into balance. And fuel prices run up very, very quickly. As we take a look at things, there must be an impact on capacity and pricing in the long run.
Jamie Baker -- J.P. Morgan -- Analyst
Got it. Thank you, all three of you. Take care.
Doug Parker -- Chairman and Chief Executive Officer
Thanks, Jamie.
Operator
Our next question comes from the line of Conor Cunningham with MKM Partners. Your line is now open.
Conor Cunningham -- MKM Partners -- Analyst
Hi, everyone. Thanks for the time.
Doug Parker -- Chairman and Chief Executive Officer
Hey, Conor. Hi.
Conor Cunningham -- MKM Partners -- Analyst
When listening to Delta and United's call, a huge portion of their script is about premium products and how they think the structural change happening. I don't think you guys mentioned much about that. I was wondering if you could just speak to how your different products are performing right now. And do you actually agree that there is a structural change happening, where leisure travelers are trying to book up more toward premium seats?
Vasu Raja -- Chief Revenue Officer -- Analyst
Conor, this is Vasu. I can start that one, and others may chime in, too. Look, we certainly, as most, definitely see a change where there's customers who are much more willing to buy premium than before. Indeed, our premium revenue across our domestic system for much of the quarter was actually higher than what it was in 2019, which is pretty promising.
But we spent a lot of time looking at this. And there's a component of it which certainly seems very promising, but it still seems early to say whether this thing is structural or not. At least in our own system, we took a lot of widebodies out of international fly, and we deployed them into domestic. We were really encouraged by what we saw where there are a lot of customers with a lot more disposable income who would travel on leisure trip, and they would not only pay for the lie-flat product, they would pay a premium versus other non-lie-flat products in the marketplace.
And so that's certainly been an encouraging thing. But what we don't know is so much of that trip behavior also, it was people leaving on a Thursday, coming back on a Monday. So we do think that with more disposable income, there will be some interest in the consumer to have more experiences, to pay more for those experiences. What we don't know is how to size the magnitude of it because there's a lot of things that certainly as been for American Airlines that we did that was very unique for the last several months.
And we don't yet know how much of a structural change that is. But to the earlier point, the beauty of the airline, and we -- this pandemic has proved over and over again is that we can change the -- where the airplanes go very, very quickly. And with that, we can also change the product design pretty quickly, too. So this is something that we are looking at.
It is a similar trend that we're seeing. Time will tell how structural it is though.
Robert Isom -- President
Thanks, Vasu. I'll just add, we're -- hey, look, we're ready for it. We've been preparing for a long time not just in selling the product, which Vasu has talked about, but the hard product as well. So the fleet is ready from a cabin configuration perspective, whether that's business class cabins or premium economy that we've put in to all of our widebodies.
And then, just as we look at travel recovery and ways to service, you're going to see that we are adding back amenities that will allow us to sell and bundle in different ways. So everything from our five-star service that's come back, to the opening of our flagship lounges, which are best in the industry, we have a way to sell and to service every customer at every end of the spectrum in terms of demand. So we feel really good about how we're set up to whatever environment that we find ourselves in.
Conor Cunningham -- MKM Partners -- Analyst
OK, appreciate it. And then, just on the cost structure, I mean, investors are trying to get comfortable with the stories on the cost side for the airlines in general. So I mean, clearly, inflationary pressures. But curious if you can talk to any of the tailwinds that you might be having that happened in 2022 outside of just bringing back capacity to 2019 levels.
The reason why I asked is I would have thought, given some of the structural changes you've had within fleet simplification and so on, that 4Q would have had a little bit more leverage to it. So any details would be helpful.
Robert Isom -- President
Yes, I think, Conor, in the fourth quarter, I mean, the story and I touched a little bit about here is we built the airline to fly more in the fourth quarter without a doubt. Two of the issues, one is the Boeing 787-8s, which are not here, we had assumed they were gonna be in the schedule. So we have 787 pilots. We have crews ready to fly those aircraft.
But we unfortunately had to pull them out of the schedule in the fourth quarter and the first quarter. The other thing from a capacity perspective that we're all dealing with right now is -- on the regional side is pilot supportability on the regional side, which will resolve itself over time. But as the mainline is hiring up, a lot of places they go to get pilots is on the regional. So we're probably not flying as much regional as we would have flown.
So I think from a CASM perspective, that's what drove it a little bit higher in the fourth quarter without a doubt versus where we had planned. So we are not flying exactly what we would have flown and where we got, and the cost structure is there. As we go forward, the tailwinds are really that -- I mean, the $1.3 billion worth of cost reductions is permanent. It's gonna be in there.
As we look into next year, we haven't done the plan yet so that's why it's really hard for me to give any kind of guide on a CASM for next year. We do see these inflationary hits to -- mostly from a salary perspective, a vendor perspective, those kind of things, and fuel, as I talked about, that we'll have to overcome as we look at the plan for next year, and we'll do that as we dig through the process. But we'll have the tailwinds of the costs coming out that we did from an efficiency standpoint and also the -- number one, getting out of the aircraft types and modifying the aircraft to be the same all across from the Oasis project will benefit us a lot as we go into 2022.
Doug Parker -- Chairman and Chief Executive Officer
Yeah, and Conor, just because we haven't talked -- we didn't spend a lot of time talking about it, the $1.3 billion, yes, we talked about a lot, but just for others who may not have been following us closely. Those are real. They're in the airline. We -- the way we look at this is we go back fly the 2019 schedule today, produce the same RASMs and save that amount.
It's a combination. It's a lot of things, but the largest ones are $500 million or so in management payroll. And as Derek said, all the efficiencies you get from eliminating so many sub fleets, training and otherwise. So those are in there the tailwinds to offset the inflationary pressures you are talking about.
Conor Cunningham -- MKM Partners -- Analyst
OK, appreciate it.
Doug Parker -- Chairman and Chief Executive Officer
Thanks, Conor.
Operator
Our next question comes from the line of Sheila Kahyaoglu with Jefferies. Your line is now open.
Sheila Kahyaoglu -- Jefferies -- Analyst
Hi, good morning, and thank you for the time, guys. Maybe if we could talk about the Transatlantic market. It's begun to open up a little bit more and maybe heading into 2022. But your passenger revenues are still down about 75%.
How do you think about the cadence of that recovery?
Vasu Raja -- Chief Revenue Officer -- Analyst
Hey, this is Vasu. I can take that one. Look, we're -- we've been really encouraged by what we've seen over the last, let's call it, three or four weeks at international at large, but especially at Transatlantic. Certainly, after the regulatory restrictions changed, we saw a big spike in bookings in the two or three days after it, but at -- which is it's not that surprising.
What has been more encouraging to us is that it's really sustained itself. But what we are seeing out there is what -- you see from us right now is a little bit of cautious optimism. In November and December, we are absolutely seeing bookings coming in at a greater rate than what we saw in 2019. A lot of that has a pent-up demand effect.
As we get into next year, with every passing week, we see our bookings step up more and more across Transatlantic. And so we're really encouraged by that. But the big variable will be when corporates start returning back to office and start traveling again for business, which we anticipate being more in the Q1 time frame than in the Q4 time frame. But more so for us, we -- our Transatlantic network is really concentrated around London.
So we don't anticipate as much of a business recovery in Q4, but we are seeing a really, really meaningful leisure recovery. And all the more so as British Airways builds back its connecting schedule at Heathrow, we anticipate taking an increasing amount of demand as Q4 goes along. So though you see that number in aggregate, we see that something as changing a lot from where we are in October, to November, to January and beyond.
Sheila Kahyaoglu -- Jefferies -- Analyst
Thank you.
Operator
Our next question comes from the line of David Vernon with Bernstein. Your line is now open.
David Vernon -- Sanford C. Bernstein -- Analyst
Thanks, operator, and thanks, guys, for taking the question. So Doug and Robert, we sat down a little bit before the pandemic. And you had sort of laid out a picture where American had been lagging on some of the customer-facing information technology stuff that was kind of constraining the operation in ways like not letting you book up to a higher load factor because of the denied boarding practice, the ability to kind of pay for upgrades, dynamic pricing on frequent flyer tickets, all that stuff. A lot of it sounded like IT-driven initiatives.
And I was wondering, kind of coming out of the crisis, as we start to look out over the next couple of years, is there still catch-up work you need to do to bring yourself at parity with peers in terms of the way they're monetizing capacity? Or have you kind of closed that gap through this crisis?
Maya Leibman -- Chief Information Officer
David, this is Maya. And I'm proud to say that over the last several years, we really have closed the gap on a number of our technology initiatives, including some of the ones that you rattled off, like dynamic pricing and allowing [Inaudible] higher load factors and a lot of standby on day of departure activity. So we've really used the pandemic as an opportunity to really identify those gaps and to close them and really focus on a lot of the other things that we've been talking about that will be tailwinds for next year like our seamless partnerships and making that a better customer experience for our customers with our West Coast and Northeast alliances.
David Vernon -- Sanford C. Bernstein -- Analyst
And is there a way to frame kind of what that uplift might be in terms of load factor or sort of ancillary revenue growth? It looks like the other revenue line is performing pretty well. But is there a way to kind of put a number around some of these things?
Vasu Raja -- Chief Revenue Officer -- Analyst
Hey, this is Vasu. We're in the early stages of doing that as we build next year's plan. But probably, our top-line initiative is making sure that all of these partnerships are really integrated and seamless for the customer, that a lot of the long-standing issues that have existed in co-sharing relationships really get alleviated pretty quickly. And look, we are pretty pleased with that.
We've made a lot of progress with Alaska and JetBlue, and what we're seeing is very encouraging. To my earlier comments, we're seeing a lot of customers come in. Had a meaningful amount of revenue production that's there, too, that -- and as we looked at it in Q3, it was a massive benefit to customers. We estimate its benefit in about 0.5% to a percentage point of system revenue, but something which is a lot more meaningful to a New York and Boston and West Coast network, which was operating at 50% of historical levels.
So we do think there's a lot of uplift to the whole thing without a lot of investment further.
David Vernon -- Sanford C. Bernstein -- Analyst
All right. Thanks a lot, guys.
Operator
Our next question comes from the line of Dan McKenzie with Seaport Global. Your line is now open.
Dan McKenzie -- Seaport Global Securities -- Analyst
Hey, thanks. Good morning, guys. The first question here is just a housecleaning question from a prior question. The Oasis project, is that included in the $1.3 billion of structural cost savings? Or is that above and beyond? And then, just related to that, if that had been fully implemented in 2019, how much would that have contributed to pre-tax income?
Derek Kerr -- Chief Financial Officer
Yes, it is included. It's just it added more seats in some of the aircraft. And from an operational benefit, it will help out a lot because, as we swap the aircraft, they will both be in that. So it is in that because we reduced the aircraft types, but it's included in that number.
What it's going to do is benefit, number one, from a CASM perspective because we'll have more seats and from a revenue perspective because we'll be able to sell more seats.
Dan McKenzie -- Seaport Global Securities -- Analyst
Yeah, understood. OK, second question here, what is the aggregate wallet spend, say, a Fortune 1000 accounts in the Northeast that American can now access for the first time as a result of the Northeast Alliance? So accounts that really where you had no shot at winning pre the relationship with JetBlue versus now. You walk in. You sit down with the corporate travel managers.
You can actually put together a competitive network solution. And then, just related to that, potential aggregate spend, what would American's fair share -- American and JetBlue's fair share be of that?
Vasu Raja -- Chief Revenue Officer -- Analyst
Hey, Dan, this is Vasu. Thanks for the question. And I appreciate what you're trying to get at, which is effectively, how much more market can we access than what American could access on its own? And while -- I don't have specific numbers in some cases. We've got to be a little bit careful in what we share about it.
For us, as we see it, in New York, historically, we might have been a 25% player. But we were competing for something which was actually like 10% to 15% of the available business travel market at large, not just the corporate market. And so -- in large part because, though we had a really great product in Heathrow or in the transcon market, if we couldn't get you very effectively to Toronto, at some point, customers, especially larger accounts or power travelers, business to our customers, just stop flying us. And now as we see it, we have the best network between AA and JetBlue.
We've gone from a world where we have four trips a day, JFK, San Francisco, to one where we'll have a 12, 13, 14 trips a day where all of our transcon product is full flat. We've taken the 50-seat RJ out of New York all together. So when you think about New York, it's a business travel market which is not two of three times larger than the next biggest market, but several orders of magnitude more than that. And that's all in our market that we get to compete for.
And when we get to compete for it, we see in New York whose RASMs instead of underperforming the system by 10% to 15% can perform in line with the system.
Robert Isom -- President
Hey, Dan, I just wanna go back and just add one more point. Regarding the fleet harmonization project, which we're almost done with, we only have, I think, 60 of the 321s that are remaining. It will be complete by the first quarter. Derek mentioned that, in the $1.3 billion, so much of the savings in terms of actual commonality and what we can take out in terms of reduction of fleet sizes and being able to operate the airline more efficient, that's included in the $1.3 billion.
What's that though is, look, we are adding seats, so -- at very, very low marginal costs. So going from 160 seats on the 73s up to 172, and then on average, adding a few seats to the 321s as well, that's a benefit that we'll be seeing in run rates going forward, from a revenue perspective.
Dan McKenzie -- Seaport Global Securities -- Analyst
Yeah, the incremental revenue that you gain. That was actually my question. That's what I was trying to get at. But thanks for the time you guys.
Doug Parker -- Chairman and Chief Executive Officer
Thanks, Dan.
Operator
Our next question comes from the line of Stephen Trent with Citi. Your line is now open.
Stephen Trent -- Citi -- Analyst
Good morning, gentlemen, and thanks for taking my question. I just had a quick one, looking at your investment. So you guys committed to invest in JetSMART and GOL in South America. You, of course, have this tie-up with JetBlue in the United States.
When you think about other international corridors, do you see any opportunities for similar kinds of tie-ups, for example, outside of the oneworld alliance?
Vasu Raja -- Chief Revenue Officer -- Analyst
Hey, this is Vasu, Stephen. I can start on that one. Look, we -- ultimately, what we want to do is create the most comprehensive network for our customers. And whether it is a code share, an investment, a joint venture, whatever it is, we don't see them as end in themselves.
Those are just simply means through which we can create something really comprehensive for our customers. And in many parts of the world, we would love to be able to do it all just organically with American Airlines mettle. That's not always possible from regulatory or other reasons. And so based on that, we made -- employ different mechanics, whether it is an investment, a code share, a loyalty partnership.
And so it will change out there. But for us, the true north is creating the most comprehensive global network. And we see that whether it's -- we've seen the benefits for consumers in the Northeast and the West Coast. As we look at South America, really has less to do with investments and more that -- the one thing we can't do for the South American customer is carry them within South America.
And so we're always on the lookout for partners that can help us do that and create more value for the customer and how we go and partnerships together as a sort of second order issue.
Stephen Trent -- Citi -- Analyst
I appreciate that, Vasu. And just one very quick follow-up. How are you guys thinking longer term about your pipeline of pilots and when you think about retirement in the next five to seven years and what have you?
Derek Kerr -- Chief Financial Officer
So Stephen, I'll take that one. Look, pilot profession, it's never been a better time to get into it. And what I'll tell you is, we will attract people to the profession given the kind of starting salaries that we are offering right now and ultimately what pilots top out at. So I do see this is ultimately an economic issue that will be solved.
You've seen us do some things recently with regional pilots to make sure that they stay in position and progress on to American Airlines. And we'll continue to monitor that. Over time, just as we saw a few years back, this will be brought into balance just simply based on economics. People will wanna come into the profession.
Stephen Trent -- Citi -- Analyst
OK, I appreciate that. Thank you for the time.
Operator
Next question comes from the line of Chris Stathoulopoulos with Susquehanna. Your line is now open.
Chris Stathoulopoulos -- Susquehanna International Group -- Analyst
Thank you, and thanks for taking my question. Good morning. So on headcount, how should we think about FTEs in 2022 and if possible 2023? Just could you run your network at or above 2019 capacity on fewer FTEs relative to 2019?
Derek Kerr -- Chief Financial Officer
Yeah, I think -- I mean, we have taken out a significant amount of headcount out of the company. That's part -- that mostly what the $1.3 billion of cost reductions -- permanent cost reductions are. As Doug alluded to, yes, half -- $500 million of that is management headcount, $600 million of it is productivity at the other areas with throughout the company. So yes, we will run.
I don't have a number for the 2022 plan because we haven't put that together yet. But that is the significant portion of what that's $1.3 billion worth of permanent cost reductions are. It's mostly in the headcount and the personnel side of things at American Airlines.
Chris Stathoulopoulos -- Susquehanna International Group -- Analyst
OK. And the second question, on the corporate side. So you mentioned a full recovery by year-end 2022. Just curious what the mix of users is here.
I know you mentioned industrials, healthcare and I think one other group. But are your surveys showing a mix similar to pre-pandemic travel? Or has it shifted? And is your outlook contemplating the same type of travel, meaning both in user type and frequency? Thanks.
Vasu Raja -- Chief Revenue Officer -- Analyst
This is Vasu. And I can help with that. Look, our -- as we see, you're exactly right, certain industries and verticals are traveling more than others. We do anticipate there being a rebound across all of them, because at this point, all industry verticals are improving.
They are just a different point in the improvement curve. And more critically and more importantly to your question, what we see is that even in sectors where travel is less bad, that's the rate of progress we're seeing is mirroring those sectors where travel is more -- relatively more returns. So we do think we have some real confidence that, indeed, corporate travel is likely to come back. As Doug and Robert mentioned earlier in their remarks, there is an immense amount of pent-up demand.
And we find that once people start to travel, they continue to do so. Very importantly though, for us and our system, we have a lot of -- a lot of our business style demand is small- and medium-sized business, really across the Southeast and the Southwest. And already -- I mean, we're seeing -- like on a traffic basis, that is very well recovered. On a revenue basis, that will start to recover as people come back and pay us more and fly more, frankly.
Robert Isom -- President
Hi, Vasu, I'll add to this. Alison Taylor just held our corporate customer advisory board meeting down in Miami. I was able to attend as well for a part of it. And that brings together our top 50 corporate customers and those that are responsible for procurement of travel at those companies.
I was really pleased to hear just over and over again about, look, we have to get back to the office. And once we get back to the office, travel is going to come. So it's not surprising that the industrials and healthcare and pharmaceuticals are leading us right now. They're back in the office.
They've got to take care of us and put food on the table. So that's happening. What's going to come next is some of the other banking and financial services, entertainment, as those get back into the office in the start of the new year, they're going to come back to just as we are seeing in some of these other sectors.
Doug Parker -- Chairman and Chief Executive Officer
Hey, Chris, it's Doug, just data around just to support some what Robert just told you, I talked about how, in July, we were up to 64% of our 2019 levels in terms of business revenue. There's a big difference between large companies, those that we have on corporate discount programs, and our small and medium business. In that 64%, the large corporates are 35% on a year over two-year basis. And the small and medium business is 83%.
So -- what it says to me is what Robert just said. People are back and traveling. When the large corporates get back to work, they'll travel. It's less about sectors, more about people just getting comfortable bringing people back into the office.
Those companies that don't have large headquarters and large HR departments are out flying because they need to across all sectors. Those companies that are larger organizations and need to worry about those things more aren't yet back. They were starting to come back, but they'll get up into the same ranges. That's where business wants to be.
Chris Stathoulopoulos -- Susquehanna International Group -- Analyst
Great color. Thank you.
Doug Parker -- Chairman and Chief Executive Officer
Thanks.
Operator
Our next question comes from the line of Helane Becker with Cowen. Your line is now open.
Helane Becker -- Cowen and Company -- Analyst
Hi, everybody. I hope you are all doing well.
Doug Parker -- Chairman and Chief Executive Officer
We are, Helane. How are you?
Helane Becker -- Cowen and Company -- Analyst
I'm OK. I guess, I'll see you tomorrow night. And by the way, congratulations.
Doug Parker -- Chairman and Chief Executive Officer
Oh, thank you.
Helane Becker -- Cowen and Company -- Analyst
So here's my question really for Derek. Interest expense, I think, in the third quarter was $476 million, I want to say. Can you just talk about debt paydown and the cadence of that and how it's going to look over the next couple of years in the context of you going from $15 billion -- I think you said in the press release $15 billion of debt pay down by 2025?
Derek Kerr -- Chief Financial Officer
Yeah. Well, I can give you what our scheduled debt paydowns are over the next few years. So we said we're going to pay down $4.4 billion this year. Next year is $2.5 billion.
The year after that, I would just say it's around $3 billion to $3.5 billion each year as we go forward. So -- but we will -- but we do plan -- just as I talked about on the call, we do plan on financing aircraft in this environment going forward. So the net debt will be a little bit different than that. So the $10 billion will come off, let's just call it, $2 billion a year over the next five years, that will reduce that.
What we do on the other five, we had talked about $1 billion already went at -- in 2021. So we did the paydown of the spare parts loan. We -- also, because of the recovery, it slowed a little bit. We are going to hold on to cash and hold on to cash where we're at today.
Once we feel we are comfortable with that, I think we will quickly use the excess cash to pay off most of the remaining $4 billion. It just depends on where our cash balance is. It depends on how it will grow over time. But I would expect it to be sooner than later as long as the recovery happens, business comes back and the earnings are there to do that.
So the prepayment would be upfront. The debt paydown, over time, the $10 billion will be over ratably over time. I don't think we have any big, huge debt payments. There's a $750 million one in 2022 that we have.
Nothing huge going forward. So I would look at it that way. It's pretty ratably, the $10 billion over the next four years. And then, we would try to attack the other $4 billion as soon as we feel comfortable and have excess cash that we can take it down to that $10 billion to $12 billion.
We're at 18 today. So we would most likely do it early. Or as I said in the comments, we could use cash to pay for aircraft and just not add the debt instead of paying off any prepayable debt. So that's the plan that we have today.
Helane Becker -- Cowen and Company -- Analyst
OK, that's very helpful. Thank you. And then, on the 787s, I think those were gonna be leased in aircraft from BOC Aviation. Are you -- does the delays change any of the financing arrangements for those aircraft?
Derek Kerr -- Chief Financial Officer
No, it does not change the financing of the aircraft. Still leased in.
Helane Becker -- Cowen and Company -- Analyst
OK, perfect. Thank you.
Operator
Our next question comes from the line of Duane Pfennigwerth with Evercore ISI. Your line is now open.
Duane Pfennigwerth -- Evercore ISI -- Analyst
Hey, good morning. A question for Doug. I thought it was interesting in the prepared comments that more capacity versus peers and more revenue versus peers was called out. Is that the main goal of the company at this point, more revenue? Or do relative margins matter? And to what extent is profitability a priority for the board at all? Or does it not even come up in conversations given how high liquidity is? What is the board trying to solve for?
Doug Parker -- Chairman and Chief Executive Officer
For relative margins, Duane, and we feel really good about that. The reason I talked so much about the absolute growth at this point in time is because we're all working to add back capacity and to get to where we can meet the demand that we know is coming. So we are really proud of what the team has done to get back more capacity than others, to take care of more customers than others, and to do so, obviously, safely and efficiently and to do so in a way that has us run in a great operation right now. But of course, that's not the goal of the company.
It's just a larger -- the goal of the company is to maximize shareholder value for the long term. And the way we'll do that is producing returns. And what we feel very good about is our ability as we come out of this to improve our relative margins certainly versus Atlantic. I think probably as everybody as you compare them back to 2019 or other years.
Duane Pfennigwerth -- Evercore ISI -- Analyst
And just a quick housekeeping, and I appreciate you taking the questions. Just looking into the fourth quarter, do you expect the operating cash burn to be larger than the $1.7 billion burn in 3Q? And I'm not sure if you have the calc, but can you speak to the daily cash burn estimate? Are we going to head back to there? Thanks for taking the questions.
Derek Kerr -- Chief Financial Officer
We -- go ahead.
Doug Parker -- Chairman and Chief Executive Officer
No. Please.
Derek Kerr -- Chief Financial Officer
No. I would say, we're not hitting back there. The fourth quarter is a -- seasonally, you do burn cash in the fourth quarter.
Duane Pfennigwerth -- Evercore ISI -- Analyst
I hear you. But I go back through every fourth quarter since you guys merged, and there's no negative operating cash burn. Understand revenue is depressed, fuel is a little bit higher, but operating cash flow is typically positive in the fourth quarter.
Doug Parker -- Chairman and Chief Executive Officer
Yeah, Duane, we don't -- operating cash flow, but the seasonality does -- in profitable years, as revenue -- as cash declining, and we exceptionally comfortable with where the cash is. That operational cash flow will track with the earnings estimate that Derek gave.
Duane Pfennigwerth -- Evercore ISI -- Analyst
Thank you for taking the questions.
Doug Parker -- Chairman and Chief Executive Officer
Thank you, Duane.
Operator
Our next question comes from the line of Andrew Didora with Bank of America. Your line is now open.
Andrew Didora -- Bank of America Merrill Lynch -- Analyst
Hi, good morning, everyone. So as American keeps ramping up capacity maybe a little bit quicker than your network peers and with your vaccine mandate upcoming, just curious, are you planning your network or staffing any differently into peak holiday season? And how do you think about the operational risks around that?
Robert Isom -- President
Hey, Andrew, it's Robert. We're getting ready for the holiday season. We expect a lot of passengers, tremendous pent-up demand, especially as vaccinations take hold and infection rates decline, and we're gonna be ready. Look, we have to get ready for the holidays always.
And this year, we're doing our best to make sure that we have the right people in the right places at the right times. And that's the effort. And we are taking the appropriate precautions where necessary. But we'll find a full schedule as we go into the holidays and looking forward to it.
Vasu Raja -- Chief Revenue Officer -- Analyst
Hey, Andrew, this is Vasu. One important thing to note, just clarifying your question also is, the absolute ASM production of American Airlines in any month in the Q -- in the fourth quarter is actually less than the absolute ASM that we are producing in July, right? So first, very much -- for where we have been, being able to go and get the big pools of demand that have been out there in geographies that are really favorable to us has really worked out. But as things shape up, we are very much managing to is the relative profitability of the airline. So just to clarify, so that gets lost in the year over year or the versus 2019 comparisons.
Andrew Didora -- Bank of America Merrill Lynch -- Analyst
That's a fair point. Then just second, maybe to ask the fuel question a little bit differently. I think I know the answer to this. But over the past one year, one-year-plus, did you ever consider introducing a hedging policy? And do you think that this is an option you could rethink going forward? Thanks.
Doug Parker -- Chairman and Chief Executive Officer
Yeah, Andrew, you never see. We've been quite happy being unhedged now for however many years tends to go. I'm sorry, what?
Derek Kerr -- Chief Financial Officer
2008.
Doug Parker -- Chairman and Chief Executive Officer
2008 Derek tells me that we stopped hedging, so -- and that feels right to us. What we find is -- what I said is over time, the industry adjusts. And what generally happens is we end up paying a premium for the hedge without much benefit at all. So anyway, like I said, I don't want to say we won't ever do it, but it's not something we've begun to look at in this run, I can tell you that.
So we prefer actually -- we think we have a reasonable economic hedge in terms of what happens with fuel prices and the economy as well. So all those things come together and have us -- tell you, but not right now.
Andrew Didora -- Bank of America Merrill Lynch -- Analyst
Got it. Thank you.
Operator
Our next question comes from the line of Mike Linenberg with Deutsche Bank. Your line is now open.
Mike Linenberg -- Deutsche Bank -- Analyst
Good morning, everyone. Derek, you talked about the delayed 787s as providing or creating a bit of a CASM headwind in the fourth quarter. Can you just remind us how many airplanes -- how many incremental 78s were you supposed to have in the 4Q? And how many percentage points of headwind is that, just roughly?
Derek Kerr -- Chief Financial Officer
Well, it depends on when we were thinking. But earlier, we were supposed to have all 13 in 2021. That schedule has changed weekly. We had -- if you go back to last quarter, we probably had six of them built into the schedule, six ASMs.
It's probably a point of ASMs that we had to take out of the schedule. But that's really what's driving a lot of this. And then, as I said, the regional -- we have had a pull down in ASMs from a regional perspective, just the -- so pilot supportability, which we will -- which we're getting all under control right now. But both of those have caused a reduction in the ASMs that we would have flown in the fourth quarter, primarily driven by the 788s.
Mike Linenberg -- Deutsche Bank -- Analyst
OK. And then, just my second question, and this is either Doug or Robert. Can you be willing to share with us where you stand on vaccinations across your employee work group? And then, just any thoughts on the testing, which -- it seems like every carrier is going to have exemption issues and they're going to have to test. And we're hearing that the costs are high, they're not, you don't have guidance from the government.
Is it a meaningful cost headwind that we have to worry about? Or anything that you can share on that topic would be great. Thanks.
Robert Isom -- President
Hey, I'll start. It's Robert. Look, the vast majority of our team members are vaccinated. And we're working through the process.
We set a November 24 deadline for vaccination or a combination of request to be provided. We don't expect anybody to leave American Airlines. And certainly, they're gonna be out there helping us during the holidays. So no issues there.
We don't know what exactly an accommodation would look like for, the minimal number of people that actually apply for that. But it's likely to be some combination of masking, self-declaration and testing. In that testing, we don't know the details of. So we are working through that.
And the -- as time goes on, we'll be able to fill you in.
Doug Parker -- Chairman and Chief Executive Officer
Yeah, thanks, Robert. And Mike, look, I certainly wouldn't be adding any cost in your forecast for this. So to the extent there will be testing going on, it would be for those who have chosen, still have to be vaccinated. If they have religious or medical exemption, in that we are accommodating while they're still work.
I don't suspect that will be an extremely high percentage of the employees. And I don't -- and I can't even imagine that that's a material cost to test those individuals. Maybe OSHA standard is once a week. So I don't know where we end up.
We're working through the accommodation process with our unions. But yes, that's -- I don't know -- first I heard this cost issue, I would do everything I could to try and you don't have to worry about that piece. As to the -- again, just to follow -- just to reinforce what Robert said, and I think it was part of a little bit of Andrew's question, that certainly, when this was first announced, I think there were concerns about what it was going to mean for airlines in TSA and others. That we got extremely comfortable with that.
I was happy to see yesterday the comments from the White House from Jeff Zients about airlines. These, which, of course, includes the TSA and about how the goal, this is to get [Inaudible] so they didn't have to punish anyone. And they're going to have people -- if people have religious or medical exemptions, they will be accommodated and they'll be able to work. So that's the same that you're going to hear from all the airlines as -- again, we're all well prepared to meet all federal mandates and meet all the customers that are coming to the holidays.
Mike Linenberg -- Deutsche Bank -- Analyst
Very good. Thanks, guys.
Doug Parker -- Chairman and Chief Executive Officer
Thanks, Mike.
Operator
Thank you. We will now take questions from the media. [Operator instructions] Our first question comes from the line of Alison Sider with Wall Street Journal. Your line is now open.
Doug Parker -- Chairman and Chief Executive Officer
Hi, Ali.
Ali Sider -- The Wall Street Journal -- Air Travel Reporter
Hi. I have a vaccine question. I'm just curious. I know you've talked a lot about the exemptions.
But I'm just curious what sort of planning or strategizing you guys might be doing if there does end up being some portion of the workforce that just doesn't get vaccinated or have to be terminated or something like that? Is there a kind of a plan B or a backup plan for how you'd handle that?
Doug Parker -- Chairman and Chief Executive Officer
Well, again, well, first off, let's start with what we know, we know, which is, again, the vast majority of employees already vaccinated. And we're seeing that rise every day as the management put in place. So we are highly confident by the time we get to November 24. certainly, by December 8, when demand that comes in place, we're gonna be down to a very small number of people, if any, that are either not vaccinated or don't have a valid medical or religious exemption.
So I understand your question is, what if that's not true? But first off, I don't think that's gonna be the case, and we know that based on the data we're seeing. But however, again -- so that's where I think the answer is. But even the case that that happens, we'll continue to work with those employees that have chosen. We got to that point, again, I think it's gonna be a really small number.
But whatever that number is, we'll continue to work to accommodate those employees and make sure that they continue -- they're working together again, as Jeff Zients suggests that they'd be doing with government employees, well, we're doing the same with ours. So we have that flexibility, but I don't think we are going to need that.
Robert Isom -- President
OK, Ali, I'd add that, of course, we're working with the team and we're working with our labor unions as well to get everybody vaccinated right now. So you see us that we continue to provide an incentive for team members to get vaccinated, turn in record of their cards. And we're working with the entire team to collect that information as we speak. And fortunately, every day, we see good signs that we're just getting out and people are turning in vaccination status or accommodation requests.
And we -- as Doug said, we are really confident that we'll be in great shape as we come into the holidays.
Ali Sider -- The Wall Street Journal -- Air Travel Reporter
Got it. And I mean, your pilots have been saying that sort of the whole debate and controversy is becoming a distraction and leading to some potential safety issues. Are you seeing that in your data at all?
Robert Isom -- President
Well, look we have an obligation to make sure that we're focused on flying. And so any type of distraction, whether it's a vaccine or anything else, we want to jump on. And to that end, we're -- again, we're working closely with our labor unions to make sure that we're on top of anything that is potentially a safety concern. But we are -- find the schedule, flying it very well and flying it incredibly safely.
We set very, very high standards, not just for the industry, but especially for American Airlines.
Operator
Our next question comes from the line of Leslie Josephs with CNBC. Your line is now open.
Leslie Josephs -- CNBC -- Airline Reporter
Hi, everyone. So I'm just trying to square this idea that you don't expect any employees to leave American Airlines. But this week, you told them again that they could be terminated if they don't comply with the mandate, either getting vaccinated or the exemption. And then, how come the exemption -- or the mandate doesn't apply to your wholly owned subsidiaries as they fly those government contracts?
Robert Isom -- President
Thank you, Leslie, I'll just start. So first off, look, we have an executive order. And so there's not a lot of debate or argument. We're trying to find the best ways to comply.
And so our efforts are making sure that our team members get vaccinated. And to that end, as we've said, we're seeing the kind of results that we want. We have no desire to see anybody leave American. And through getting vaccinated, which we're making very available and easy for folks to get done, or those that -- the small number that apply for accommodations, we will continue to work with people to encourage them to make sure that they take care of themselves.
And we are working cooperatively with our labor unions as well. And we have different agreements that we have to follow in accordance with our collective bargaining agreements to make sure that we're doing everything possible to make sure that people stay with American. And we're looking through that, and we're committed to take care of our team.
Doug Parker -- Chairman and Chief Executive Officer
And again, Leslie -- again, just a distinction, I think, Leslie, between where early on in this process, there was concern about not having enough people and where you're seeing everyone getting now is, there was -- I think there was a view that those -- at least some airlines or TSA or other places, those who could not get vaccinated or chose not to get vaccinated would be on unpaid leave or something like that. That's not where we are going. So that's what gives us the comfort. We do know there will be some people at American Airlines who have reasons they can't get vaccinated.
They will have exemptions. And -- but when they have exemptions, we're going to work to accommodate them so that they also can do their jobs. And that -- if anything, between a few weeks ago to now, where you're hearing extreme comfort around our ability to do it versus where we might have been when we first heard this, that's the distinction. And the exact same distinction, by the way, as I said, that we heard yesterday from the administration about TSA and other agencies.
So that's what gives us the comfort. That's why we think we're not going to see anyone leaving American. I don't think anyone is going to want to leave American because they can't get -- because either they just -- they choose not to get vaccinated, they don't have a religious or medical exemption. On the -- on our subsidiaries, just like every other airline, the regional carriers are not subject to the mandate that we know it.
That they have to work through that themselves to see whether or not they deem themselves federal contractors. But to the extent they're not, they're not subject to the mandate. They will be subject to the OSHA requirement when it's effective for airline -- for companies that have 100 or more employees. So at that point, they will need to respond accordingly.
But there isn't -- I don't -- I certainly don't think between American, Delta, United, none of the regional carriers that any of us use are working toward a vaccine mandate at this point because they've concluded they don't have -- they're not covered by the mandate.
Leslie Josephs -- CNBC -- Airline Reporter
OK. And then, for the exemptions, do you expect to approve all of them?
Doug Parker -- Chairman and Chief Executive Officer
No, of course, not. Not. But again, what I believe is -- what I really believe is where you get -- whatever exemption is gonna be a small percentage of the workforce. And most -- everyone will get vaccinated.
So -- but certainly, there are always medical exemptions. And to the extent people have valid religious or medical exemptions, we're not going to put them on unpaid leave. We're going to make accommodations for them, as we should. So they can continue to work.
Robert Isom -- President
And for those that don't receive approval for those exceptions, we fully expect them to get vaccinated.
Doug Parker -- Chairman and Chief Executive Officer
Right.
Leslie Josephs -- CNBC -- Airline Reporter
Got it. Thank you.
Doug Parker -- Chairman and Chief Executive Officer
Thanks, Leslie.
Operator
Our next question comes from the line of David Koenig with Associated Press. Your line is now open.
Doug Parker -- Chairman and Chief Executive Officer
Hey, David.
David Koenig -- The Associated Press -- Business Writer
Hi. Good morning, Doug. I have two follow-up questions, but I'll try and be quick. First, sticking with the vaccination theme.
United and Delta put numbers out there. And why can't you tell us how many or what percentage of your employees are vaccinated? And secondly, and this goes back to something that came up a couple of times on the analyst section, about flying a fourth-quarter schedule that's pretty close to 2019 levels and how you're going to do that with your current headcount, why shouldn't passengers expect to see the same kind of disruptions that you had over the summer.
Robert Isom -- President
Look, David, I'll take that. Look, we're -- we have done a tremendous job of making sure that we're set with final schedule. As we said in our comments, we flew most reliable September in our company's history. And that's the kind of performance that you can expect from American going forward.
We did a tremendous ramp up to get to where we were during the summer. And, by the way, as Vasu mentioned in some of his comments, the kind of schedule we are going to fly around the holidays is actually no larger than what we had flown during the summer. So we -- and all we've done since that time has been able to add more resource to make sure our partners are better positioned and that we're better equipped to handle whatever may come our way. So we feel really confident on that point.
In regard to --
Derek Kerr -- Chief Financial Officer
And I would add to that, Robert. But David -- this is Derek. The hiring we're doing now is due for the summer of next year. So we're very confident of having enough resources to run Thanksgiving and Christmas.
We already have those people onboard.
Doug Parker -- Chairman and Chief Executive Officer
He is asking into next year, though.
David Koenig -- The Associated Press -- Business Writer
Yeah.
Doug Parker -- Chairman and Chief Executive Officer
In the next summer, again, the end point though. We're -- look, the disruption we had at end of June was due to us just not having as many pilots through the training process as we had expected. We've rectified that issue, and we are going to make sure that we have -- as we expand, that we have the right number of employees. So that's not an issue at all.
And by the way, to your first question, yes, I guess, it was two airlines have released their numbers. Our number is still moving every day as more and more people are getting vaccinated. In the case of both, one of them put in place on their unilateral mandate for their teams so that they're through with that. Other one put in place a requirement that if you're not vaccinated, you're going to pay more for your medical benefits, and it's already in place.
So -- but I don't think any other airlines have talked about exactly where they are and probably for the same reason we had, which we had a voluntary program in place. And now we have a mandate in place, and that number continues to grow. And what we know is, by the time we get to November 24, we're gonna be where the others are, which is virtually everyone vaccinated. Those that aren't will have valid medical or religious exemptions and will be flying our airline, taking care of our customers.
David Koenig -- The Associated Press -- Business Writer
Thank you.
Operator
Our next question comes from the line of Dawn Gilbertson with USA Today. Your line is now open.
Dawn Gilbertson -- USA Today -- Consumer Travel Reporter
Hi, good morning. Of course, another vaccine mandate, holiday travel question. Specifically, Scott Kirby, which you're no doubt aware of, yesterday had some pretty strong comments predicting a holiday travel meltdown for everyone, of course, but United. But I wondered, you saying even if -- so you do have to go to testing for some of these people that he said, if there's a weather melt -- if you think a weather meltdown is something where do you see as these people test positive last minute and a flurry of last minute flight cancellation.
So in short, what he's predicting a buyer beware for people. How do you specifically respond to that? And my second question is, who is approving these exemptions? Is that just the company? Or is -- does the government play a role in that, too? Thank you very much for any color.
Doug Parker -- Chairman and Chief Executive Officer
Yeah, Dawn. Look, again, I didn't see Scott's comments, but anyway, if that's what he says that is not right, of course. All the reason we just said, but -- we're well prepared for all the reasons already said, I don't need to restate them. Highly confident that we're going to have everybody we need to fly the schedule.
And whatever the accommodation process, as I expect, again, for it not to be a large percentage of the airline, and it certainly won't be a process that will be cumbersome on the operation. So again, we are still working what the accommodation process will be with our unions. And there will be some combination of testing and masks and social distancing and things like that, as it should be, to make sure we're safe. But we do need to accommodate those who have valid medical or religious exemptions.
And again, I go back to at least the OSHA requirement is weekly testing. So I'm not saying it's where we'll end up. But I don't -- it's not going to -- certainly not gonna be something like hourly testing. So we don't anticipate any sort of operational impact.
We anticipate having all the people we need. We may have started some of this by being concerned, like I said, when it first came out because we didn't have this kind of direction. We're not remotely concerned now. On -- as to who approves the exemptions, I think that's the employer's duty to approve the exemptions.
Robert Isom -- President
And we already have a process in place and it did have to deal with accommodation requests already.
Doug Parker -- Chairman and Chief Executive Officer
And we always have, and all companies do because of disability. I'm sorry, Robert. Go ahead.
Robert Isom -- President
No, that's it.
Doug Parker -- Chairman and Chief Executive Officer
Yeah, so anyway, it's the same process. It's just bigger now.
Dawn Gilbertson -- USA Today -- Consumer Travel Reporter
Thank you very much.
Doug Parker -- Chairman and Chief Executive Officer
Please go on.
Operator
Our next question comes from the line of Justin Bachman with Bloomberg. Your line is now open.
Justin Bachman -- Bloomberg -- Deputy News Director
Thanks for the time today. I wanted to ask about the DOJ lawsuit regarding your relationship with JetBlue in the Northeast. Are there any discussions going on with the government about that lawsuit in terms of any type of concessions or changes to that agreement? Or is this a case where it's kind of all or nothing in your view?
Doug Parker -- Chairman and Chief Executive Officer
Yeah, absolutely not. Absolutely not. They've sued us and we're going to go win the lawsuit. They're wrong.
This is highly beneficial to consumers. And we're perplexed as to why they filed this lawsuit. This is our prerogative and we'll see them in court.
Justin Bachman -- Bloomberg -- Deputy News Director
OK. Did you -- Doug, did you say that the discussions were ongoing at the time and they still are or they're not going on?
Doug Parker -- Chairman and Chief Executive Officer
I said they're not going on. I think [Inaudible] lawyers are talking to lawyers, but I can tell you for certain, the company is not interested in any sort of talks about settling this. We feel extremely good about our case. I think it's better every day as we continue to expand and provide more service to customers.
Justin Bachman -- Bloomberg -- Deputy News Director
Great. Thank you.
Operator
Our final question comes from the line of Kyle Arnold with Dallas Morning News. Your line is now open.
Doug Parker -- Chairman and Chief Executive Officer
Hey, Kyle.
Kyle Arnold -- Dallas Morning News -- Aviation Writer
Hey. How are you adjusting your staffing levels at the same levels that you've done in previous years when you look forward to the holiday season? I know some other airlines have said that they essentially have to put more workers on the line and have more workers out there as they come out of this pandemic. How are you approaching staffing over the next couple of months?
Robert Isom -- President
Yeah, I'll take that. We're getting ready for the holidays just as we always do. Look, we've done a remarkable job. I wanna give a shout out to our team.
American Airlines, in terms of real reliability, arriving on time and completion factor, we're not at the top of the industry, but I'll tell you what, we are beating our other network competitors and doing a real nice job of managing through the pandemic. So really pleased with that. And that same kind of attitude goes into how we look forward to the holidays. And we'll be ready for them and make sure that we have staffing in place and make sure that customers have a very nice experience.
Kyle Arnold -- Dallas Morning News -- Aviation Writer
But you're not adding extra staff or adjusting staffing levels upward?
Robert Isom -- President
So just specifically, we always do. You have to get ready for things like deicing, wayfinding in the airports, managing security -- TSA security lines. Load factors will be higher. So we always have a provision to make sure that we have staffing at the gates to accommodate.
And as Derek mentioned as well, we're doing hiring throughout the business, and that includes places like our reservations offices as well. So all of that is being bolstered from where we are today. And again, those kind of things that we would have done in the past, we'll be ready for, and looking forward to holidays.
Kyle Arnold -- Dallas Morning News -- Aviation Writer
Thanks, Robert.
Operator
This concludes today's question-and-answer session. I will now turn the call back to Mr. Doug Parker for closing remarks.
Doug Parker -- Chairman and Chief Executive Officer
All right. Thank you all very much. We appreciate your interest. Any other questions, please let investor relations or corporate communications know.
Thanks for your time.
Operator
[Operator signoff]
Duration: 89 minutes
Call participants:
Dan Cravens -- Moderator, Head of Investor Relations
Doug Parker -- Chairman and Chief Executive Officer
Robert Isom -- President
Derek Kerr -- Chief Financial Officer
Jamie Baker -- J.P. Morgan -- Analyst
Vasu Raja -- Chief Revenue Officer -- Analyst
Conor Cunningham -- MKM Partners -- Analyst
Sheila Kahyaoglu -- Jefferies -- Analyst
David Vernon -- Sanford C. Bernstein -- Analyst
Maya Leibman -- Chief Information Officer
Dan McKenzie -- Seaport Global Securities -- Analyst
Stephen Trent -- Citi -- Analyst
Chris Stathoulopoulos -- Susquehanna International Group -- Analyst
Helane Becker -- Cowen and Company -- Analyst
Duane Pfennigwerth -- Evercore ISI -- Analyst
Andrew Didora -- Bank of America Merrill Lynch -- Analyst
Mike Linenberg -- Deutsche Bank -- Analyst
Ali Sider -- The Wall Street Journal -- Air Travel Reporter
Leslie Josephs -- CNBC -- Airline Reporter
David Koenig -- The Associated Press -- Business Writer
Dawn Gilbertson -- USA Today -- Consumer Travel Reporter
Justin Bachman -- Bloomberg -- Deputy News Director
Kyle Arnold -- Dallas Morning News -- Aviation Writer
More AAL analysis
All earnings call transcripts
This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability.
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.
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American Airlines Group (NASDAQ: AAL) Q3 2021 Earnings Call Oct 21, 2021, 8:30 a.m. Operator [Operator signoff] Duration: 89 minutes Call participants: Dan Cravens -- Moderator, Head of Investor Relations Doug Parker -- Chairman and Chief Executive Officer Robert Isom -- President Derek Kerr -- Chief Financial Officer Jamie Baker -- J.P. Morgan -- Analyst Vasu Raja -- Chief Revenue Officer -- Analyst Conor Cunningham -- MKM Partners -- Analyst Sheila Kahyaoglu -- Jefferies -- Analyst David Vernon -- Sanford C. Bernstein -- Analyst Maya Leibman -- Chief Information Officer Dan McKenzie -- Seaport Global Securities -- Analyst Stephen Trent -- Citi -- Analyst Chris Stathoulopoulos -- Susquehanna International Group -- Analyst Helane Becker -- Cowen and Company -- Analyst Duane Pfennigwerth -- Evercore ISI -- Analyst Andrew Didora -- Bank of America Merrill Lynch -- Analyst Mike Linenberg -- Deutsche Bank -- Analyst Ali Sider -- The Wall Street Journal -- Air Travel Reporter Leslie Josephs -- CNBC -- Airline Reporter David Koenig -- The Associated Press -- Business Writer Dawn Gilbertson -- USA Today -- Consumer Travel Reporter Justin Bachman -- Bloomberg -- Deputy News Director Kyle Arnold -- Dallas Morning News -- Aviation Writer More AAL analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. So in summary, while the Delta variant has shifted the time line to the recovery, we remain very bullish on the return of demand, and we feel great about how we're positioned, thanks to the hard work and dedication of the American Airlines team.
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Operator [Operator signoff] Duration: 89 minutes Call participants: Dan Cravens -- Moderator, Head of Investor Relations Doug Parker -- Chairman and Chief Executive Officer Robert Isom -- President Derek Kerr -- Chief Financial Officer Jamie Baker -- J.P. Morgan -- Analyst Vasu Raja -- Chief Revenue Officer -- Analyst Conor Cunningham -- MKM Partners -- Analyst Sheila Kahyaoglu -- Jefferies -- Analyst David Vernon -- Sanford C. Bernstein -- Analyst Maya Leibman -- Chief Information Officer Dan McKenzie -- Seaport Global Securities -- Analyst Stephen Trent -- Citi -- Analyst Chris Stathoulopoulos -- Susquehanna International Group -- Analyst Helane Becker -- Cowen and Company -- Analyst Duane Pfennigwerth -- Evercore ISI -- Analyst Andrew Didora -- Bank of America Merrill Lynch -- Analyst Mike Linenberg -- Deutsche Bank -- Analyst Ali Sider -- The Wall Street Journal -- Air Travel Reporter Leslie Josephs -- CNBC -- Airline Reporter David Koenig -- The Associated Press -- Business Writer Dawn Gilbertson -- USA Today -- Consumer Travel Reporter Justin Bachman -- Bloomberg -- Deputy News Director Kyle Arnold -- Dallas Morning News -- Aviation Writer More AAL analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. American Airlines Group (NASDAQ: AAL) Q3 2021 Earnings Call Oct 21, 2021, 8:30 a.m. Dan Cravens -- Moderator, Head of Investor Relations Thanks, Sarah, and good morning, everyone, and welcome to the American Airlines Group third-quarter 2021earnings conference call On the call this morning, we have Doug Parker, chairman and CEO; Robert Isom, president; and Derek Kerr, chief financial officer.
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Operator [Operator signoff] Duration: 89 minutes Call participants: Dan Cravens -- Moderator, Head of Investor Relations Doug Parker -- Chairman and Chief Executive Officer Robert Isom -- President Derek Kerr -- Chief Financial Officer Jamie Baker -- J.P. Morgan -- Analyst Vasu Raja -- Chief Revenue Officer -- Analyst Conor Cunningham -- MKM Partners -- Analyst Sheila Kahyaoglu -- Jefferies -- Analyst David Vernon -- Sanford C. Bernstein -- Analyst Maya Leibman -- Chief Information Officer Dan McKenzie -- Seaport Global Securities -- Analyst Stephen Trent -- Citi -- Analyst Chris Stathoulopoulos -- Susquehanna International Group -- Analyst Helane Becker -- Cowen and Company -- Analyst Duane Pfennigwerth -- Evercore ISI -- Analyst Andrew Didora -- Bank of America Merrill Lynch -- Analyst Mike Linenberg -- Deutsche Bank -- Analyst Ali Sider -- The Wall Street Journal -- Air Travel Reporter Leslie Josephs -- CNBC -- Airline Reporter David Koenig -- The Associated Press -- Business Writer Dawn Gilbertson -- USA Today -- Consumer Travel Reporter Justin Bachman -- Bloomberg -- Deputy News Director Kyle Arnold -- Dallas Morning News -- Aviation Writer More AAL analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. American Airlines Group (NASDAQ: AAL) Q3 2021 Earnings Call Oct 21, 2021, 8:30 a.m. Dan Cravens -- Moderator, Head of Investor Relations Thanks, Sarah, and good morning, everyone, and welcome to the American Airlines Group third-quarter 2021earnings conference call On the call this morning, we have Doug Parker, chairman and CEO; Robert Isom, president; and Derek Kerr, chief financial officer.
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Operator [Operator signoff] Duration: 89 minutes Call participants: Dan Cravens -- Moderator, Head of Investor Relations Doug Parker -- Chairman and Chief Executive Officer Robert Isom -- President Derek Kerr -- Chief Financial Officer Jamie Baker -- J.P. Morgan -- Analyst Vasu Raja -- Chief Revenue Officer -- Analyst Conor Cunningham -- MKM Partners -- Analyst Sheila Kahyaoglu -- Jefferies -- Analyst David Vernon -- Sanford C. Bernstein -- Analyst Maya Leibman -- Chief Information Officer Dan McKenzie -- Seaport Global Securities -- Analyst Stephen Trent -- Citi -- Analyst Chris Stathoulopoulos -- Susquehanna International Group -- Analyst Helane Becker -- Cowen and Company -- Analyst Duane Pfennigwerth -- Evercore ISI -- Analyst Andrew Didora -- Bank of America Merrill Lynch -- Analyst Mike Linenberg -- Deutsche Bank -- Analyst Ali Sider -- The Wall Street Journal -- Air Travel Reporter Leslie Josephs -- CNBC -- Airline Reporter David Koenig -- The Associated Press -- Business Writer Dawn Gilbertson -- USA Today -- Consumer Travel Reporter Justin Bachman -- Bloomberg -- Deputy News Director Kyle Arnold -- Dallas Morning News -- Aviation Writer More AAL analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. American Airlines Group (NASDAQ: AAL) Q3 2021 Earnings Call Oct 21, 2021, 8:30 a.m. So with that, I will open up the line for analyst questions.
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US STOCKS-IBM weighs on the Dow; Nasdaq and S&P gain ground
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AAL
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https://www.nasdaq.com/articles/us-stocks-ibm-weighs-on-the-dow-nasdaq-and-sp-gain-ground-2021-10-21
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By Shreyashi Sanyal, Devik Jain and Sinéad Carew
Oct 21 (Reuters) - The Dow was weighed down on Thursday by a collapse in IBM IBM.N shares after a disappointing quarterly report, but the Nasdaq gained and the S&P 500 index .SPX touched a record high with help from high-profile stocks such as Tesla Inc TSLA.O.
After hitting an intraday record on Wednesday the Dow pulled back, with IBM tumbling after missing Wall Street estimates for quarterly revenue as orders in one business segment declined ahead of a spinoff next month.
The benchmark S&P clocked its seventh straight session of gains and of its 11 major industry sectors consumer discretionary .SPLRCD was the biggest percentage gainer during the session while energy stocks .SPNY were declining the most as crude oil futures fell on concerns about demand.
"For the most part you're dealing with a slightly risk-off day with people going back to more defensive sectors" including big technology companies, said Chris Zaccarelli, chief investment officer at Independent Advisor Alliance in Charlotte, North Carolina.
"You're seeing oil down a little bit today so potentially there's some global growth concerns. You're seeing some inflation concerns as well."
However, the CBOE Volatility index .VIX, also referred to as Wall Street's fear gauge, hit its lowest point since early July during the session.
This suggests that investors do not see a big decline or upswing for stocks ahead despite concerns about supply-chain problems increasing costs, according to Shawn Cruz, senior market strategist at TD Ameritrade.
"The market may be saying the supply-chain issues that are driving up costs are going to be transitory because markets are discounting mechanisms they take what is expected that happen in the future, and assign a price right now," Cruz said.
Cruz also pointed to earlier data showing that the number of Americans filing new claims for unemployment benefits dropped to a 19-month low last week, pointing to a tightening labor market.
According to preliminary data, the S&P 500 .SPX gained 13.32 points, or 0.29%, to end at 4,550.83 points, while the Nasdaq Composite .IXIC gained 93.82 points, or 0.62%, to 15,215.50. The Dow Jones Industrial Average .DJI fell 7.38 points, or 0.02%, to 35,601.96.
Analysts were expecting S&P 500 third-quarter earnings to rise 33.7% year-on-year, with about 100 company reports in so far, according to the latest data from Refinitiv.
Tesla was the Nasdaq's biggest boost during the session as investors digested the electric car maker's upbeat earnings, despite a supply-chain warning.
American Airlines AAL.O rose after the company posted a smaller-than-expected quarterly loss, while Southwest Airlines Co LUV.N fell after it said it expected current quarter profit to remain elusive.
HP Inc HPQ.N gained as brokerages raised their price targets on the stock after the personal computer and printer maker forecast upbeat fiscal 2022 adjusted profit and raised its annual dividend.
(Reporting by Shreyashi Sanyal and Devik Jain in Bengaluru, Sinéad Carew in New York Editing by Arun Koyyur and Matthew Lewis)
((sinead.carew@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.
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American Airlines AAL.O rose after the company posted a smaller-than-expected quarterly loss, while Southwest Airlines Co LUV.N fell after it said it expected current quarter profit to remain elusive. By Shreyashi Sanyal, Devik Jain and Sinéad Carew Oct 21 (Reuters) - The Dow was weighed down on Thursday by a collapse in IBM IBM.N shares after a disappointing quarterly report, but the Nasdaq gained and the S&P 500 index .SPX touched a record high with help from high-profile stocks such as Tesla Inc TSLA.O. After hitting an intraday record on Wednesday the Dow pulled back, with IBM tumbling after missing Wall Street estimates for quarterly revenue as orders in one business segment declined ahead of a spinoff next month.
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American Airlines AAL.O rose after the company posted a smaller-than-expected quarterly loss, while Southwest Airlines Co LUV.N fell after it said it expected current quarter profit to remain elusive. By Shreyashi Sanyal, Devik Jain and Sinéad Carew Oct 21 (Reuters) - The Dow was weighed down on Thursday by a collapse in IBM IBM.N shares after a disappointing quarterly report, but the Nasdaq gained and the S&P 500 index .SPX touched a record high with help from high-profile stocks such as Tesla Inc TSLA.O. This suggests that investors do not see a big decline or upswing for stocks ahead despite concerns about supply-chain problems increasing costs, according to Shawn Cruz, senior market strategist at TD Ameritrade.
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American Airlines AAL.O rose after the company posted a smaller-than-expected quarterly loss, while Southwest Airlines Co LUV.N fell after it said it expected current quarter profit to remain elusive. By Shreyashi Sanyal, Devik Jain and Sinéad Carew Oct 21 (Reuters) - The Dow was weighed down on Thursday by a collapse in IBM IBM.N shares after a disappointing quarterly report, but the Nasdaq gained and the S&P 500 index .SPX touched a record high with help from high-profile stocks such as Tesla Inc TSLA.O. The benchmark S&P clocked its seventh straight session of gains and of its 11 major industry sectors consumer discretionary .SPLRCD was the biggest percentage gainer during the session while energy stocks .SPNY were declining the most as crude oil futures fell on concerns about demand.
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American Airlines AAL.O rose after the company posted a smaller-than-expected quarterly loss, while Southwest Airlines Co LUV.N fell after it said it expected current quarter profit to remain elusive. By Shreyashi Sanyal, Devik Jain and Sinéad Carew Oct 21 (Reuters) - The Dow was weighed down on Thursday by a collapse in IBM IBM.N shares after a disappointing quarterly report, but the Nasdaq gained and the S&P 500 index .SPX touched a record high with help from high-profile stocks such as Tesla Inc TSLA.O. The benchmark S&P clocked its seventh straight session of gains and of its 11 major industry sectors consumer discretionary .SPLRCD was the biggest percentage gainer during the session while energy stocks .SPNY were declining the most as crude oil futures fell on concerns about demand.
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US STOCKS-Dow weighed down by IBM, risk-off sentiment; Nasdaq gains
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AAL
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https://www.nasdaq.com/articles/us-stocks-dow-weighed-down-by-ibm-risk-off-sentiment-nasdaq-gains-2021-10-21
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By Shreyashi Sanyal, Devik Jain and Sinéad Carew
Oct 21 (Reuters) - The Dow fell on Thursday as IBM IBM.N shares collapsed after a disappointing quarterly report, but the Nasdaq advanced with help from defensive big technology companies and Tesla Inc TSLA.O.
The benchmark S&P 500 index .SPX was very slightly in the red after six straight sessions of gains, but was just about 10 points short of its early September record.
After hitting an intraday record on Wednesday the Dow pulled back, with IBM down 9% after missing Wall Street estimates for quarterly revenue as orders in one business segment declined ahead of a spinoff next month.
Seven of the 11 major S&P 500 sectors were trading lower, with energy stocks .SPNY declining the most as crude oil futures fell on concerns about weak winter demand.
Consumer discretionary .SPLRCD was the biggest percentage gainer among the S&P sectors so far, with help from Amazon.com Inc AMZN.O.
"For the most part you're dealing with a slightly risk-off day with people going back to more defensive sectors" including big technology companies, said Chris Zaccarelli, chief investment officer at Independent Advisor Alliance in Charlotte, North Carolina.
"You're seeing oil down a little bit today so potentially there's some global growth concerns. You're seeing some inflation concerns as well."
By 2:14 p.m. EDT, the Dow Jones Industrial Average .DJI fell 144.57 points, or 0.41%, to 35,464.77, the S&P 500 .SPX lost 2.64 points, or 0.06%, to 4,533.55 and the Nasdaq Composite .IXIC added 43.98 points, or 0.29%, to 15,165.65.
Investors are keeping an eye out for growth outlook comments from companies facing rising costs, labor shortages and supply-chain constraints, with analysts expecting S&P 500 third-quarter earnings to rise 33.7% year-on-year, according to Refinitiv.
"They (supply-chain constraints) definitely are a concern. Things like semiconductor chips in particular have held back the economy to some degree and have put some upward pressure on inflation," said Jon Adams, senior investment strategist for BMO Global Asset Management.
Tesla was the Nasdaq's biggest boost, erasing early declines to rise 3.0% as investors digested the electric car maker's upbeat earnings, despite a supply-chain warning.
Data showed the number of Americans filing new claims for unemployment benefits dropped to a 19-month low last week, pointing to a tightening labor market, though a shortage of workers could keep the pace of hiring moderate in October.
American Airlines AAL.O rose 1.5% after posting a smaller-than-expected quarterly loss, while Southwest Airlines Co LUV.N fell 1.8% after it said it expected current quarter profit to remain elusive.
HP Inc HPQ.N gained 5.7% as brokerages raised their price targets on the stock after the personal computer and printer maker forecast upbeat fiscal 2022 adjusted profit and raised its annual dividend.
Declining issues outnumbered advancing ones on the NYSE by a 1.59-to-1 ratio; on Nasdaq, a 1.12-to-1 ratio favored decliners.
The S&P 500 posted 51 new 52-week highs and no new lows; the Nasdaq Composite recorded 93 new highs and 33 new lows.
(Reporting by Shreyashi Sanyal and Devik Jain in Bengaluru, Sinéad Carew in New York Editing by Arun Koyyur and Matthew Lewis)
((sinead.carew@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.
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American Airlines AAL.O rose 1.5% after posting a smaller-than-expected quarterly loss, while Southwest Airlines Co LUV.N fell 1.8% after it said it expected current quarter profit to remain elusive. By Shreyashi Sanyal, Devik Jain and Sinéad Carew Oct 21 (Reuters) - The Dow fell on Thursday as IBM IBM.N shares collapsed after a disappointing quarterly report, but the Nasdaq advanced with help from defensive big technology companies and Tesla Inc TSLA.O. "For the most part you're dealing with a slightly risk-off day with people going back to more defensive sectors" including big technology companies, said Chris Zaccarelli, chief investment officer at Independent Advisor Alliance in Charlotte, North Carolina.
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American Airlines AAL.O rose 1.5% after posting a smaller-than-expected quarterly loss, while Southwest Airlines Co LUV.N fell 1.8% after it said it expected current quarter profit to remain elusive. By Shreyashi Sanyal, Devik Jain and Sinéad Carew Oct 21 (Reuters) - The Dow fell on Thursday as IBM IBM.N shares collapsed after a disappointing quarterly report, but the Nasdaq advanced with help from defensive big technology companies and Tesla Inc TSLA.O. Investors are keeping an eye out for growth outlook comments from companies facing rising costs, labor shortages and supply-chain constraints, with analysts expecting S&P 500 third-quarter earnings to rise 33.7% year-on-year, according to Refinitiv.
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American Airlines AAL.O rose 1.5% after posting a smaller-than-expected quarterly loss, while Southwest Airlines Co LUV.N fell 1.8% after it said it expected current quarter profit to remain elusive. By Shreyashi Sanyal, Devik Jain and Sinéad Carew Oct 21 (Reuters) - The Dow fell on Thursday as IBM IBM.N shares collapsed after a disappointing quarterly report, but the Nasdaq advanced with help from defensive big technology companies and Tesla Inc TSLA.O. By 2:14 p.m. EDT, the Dow Jones Industrial Average .DJI fell 144.57 points, or 0.41%, to 35,464.77, the S&P 500 .SPX lost 2.64 points, or 0.06%, to 4,533.55 and the Nasdaq Composite .IXIC added 43.98 points, or 0.29%, to 15,165.65.
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American Airlines AAL.O rose 1.5% after posting a smaller-than-expected quarterly loss, while Southwest Airlines Co LUV.N fell 1.8% after it said it expected current quarter profit to remain elusive. By Shreyashi Sanyal, Devik Jain and Sinéad Carew Oct 21 (Reuters) - The Dow fell on Thursday as IBM IBM.N shares collapsed after a disappointing quarterly report, but the Nasdaq advanced with help from defensive big technology companies and Tesla Inc TSLA.O. You're seeing some inflation concerns as well."
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4091.0
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2021-10-21 00:00:00 UTC
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US STOCKS-Dow hit by IBM results, Nasdaq rises on gains in Big Tech
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AAL
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https://www.nasdaq.com/articles/us-stocks-dow-hit-by-ibm-results-nasdaq-rises-on-gains-in-big-tech-2021-10-21
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By Shreyashi Sanyal and Devik Jain
Oct 21 (Reuters) - The Dow on Thursday eased from a record high hit in the previous session as IBM shares fell after its quarterly report, with the potential impact of supply chain disruptions and labor shortages on profits taking the center stage this earnings season.
The benchmark S&P 500 index .SPX edged lower, but was just about 10 points short of its early September record, while the Nasdaq .IXIC drew support from a rise in mega-cap growth companies.
"Stocks are climbing to new highs and anytime the market is trading at or near its all-time high, it is not unusual to see a little bit of more intraday volatility...and it should not concern investors," said Tom Mantione, managing director, UBS Private Wealth Management in Stamford, Connecticut.
Six of the 11 major S&P 500 sectors were trading lower, with energy stocks .SPNY falling the most.
IBM IBM.N tumbled 8.2% after it missed market estimates for quarterly revenue as its managed infrastructure business suffered from a decline in orders.
Investors are keeping a close eye on growth outlook from companies facing rising costs, labor shortages and supply chain constraints, with analysts expecting profit of S&P 500 companies to rise 33.7% from a year earlier, according to Refinitiv data.
"They (supply chain constraints) definitely are a concern. Things like semiconductor chips in particular have held back the economy to some degree and have put some upward pressure on inflation," said Jon Adams, senior investment strategist for BMO Global Asset Management.
Tesla Inc TSLA.O erased early declines to rise 3.0% as investors digested the EV maker's upbeat earnings, despite the company warning of supply-chain hurdles.
Other growth stocks including Facebook Inc FB.O, Microsoft Corp MSFT.O and Amazon.com Inc AMZN.O were higher by early afternoon trading.
Data showed the number of Americans filing new claims for unemployment benefits dropped to a 19-month low last week, pointing to a tightening labor market, though a shortage of workers could keep the pace of hiring moderate in October.
At 12:00 p.m. ET, the Dow Jones Industrial Average .DJI was down 111.47 points, or 0.31%, at 35,497.87, the S&P 500 .SPX was down 2.15 points, or 0.05%, at 4,534.04 and the Nasdaq Composite .IXIC was up 38.84 points, or 0.26%, at 15,160.52.
American Airlines AAL.O rose 1.2% after posting a smaller-than-expected quarterly loss, while Southwest Airlines Co LUV.N fell 1.5% after it said it expected current quarter profits to remain elusive.
HP Inc HPQ.N gained 5.9% as brokerages raised their price targets on the stock after the personal computer and printer maker forecast upbeat fiscal 2022 adjusted profit and raised its annual dividend.
Declining issues outnumbered advancers for a 1.60-to-1 ratio on the NYSE and for a 1.22-to-1 ratio on the Nasdaq.
The S&P index recorded 48 new 52-week highs and no new low, while the Nasdaq recorded 84 new highs and 24 new lows.
(Reporting by Shreyashi Sanyal and Devik Jain in Bengaluru; Editing by Arun Koyyur)
((Shreyashi.Sanyal@thomsonreuters.com; +1 646 223 8780; +91 961 144 3740; Twitter: https://twitter.com/s_shreyashi;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines AAL.O rose 1.2% after posting a smaller-than-expected quarterly loss, while Southwest Airlines Co LUV.N fell 1.5% after it said it expected current quarter profits to remain elusive. By Shreyashi Sanyal and Devik Jain Oct 21 (Reuters) - The Dow on Thursday eased from a record high hit in the previous session as IBM shares fell after its quarterly report, with the potential impact of supply chain disruptions and labor shortages on profits taking the center stage this earnings season. Things like semiconductor chips in particular have held back the economy to some degree and have put some upward pressure on inflation," said Jon Adams, senior investment strategist for BMO Global Asset Management.
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American Airlines AAL.O rose 1.2% after posting a smaller-than-expected quarterly loss, while Southwest Airlines Co LUV.N fell 1.5% after it said it expected current quarter profits to remain elusive. Investors are keeping a close eye on growth outlook from companies facing rising costs, labor shortages and supply chain constraints, with analysts expecting profit of S&P 500 companies to rise 33.7% from a year earlier, according to Refinitiv data. Tesla Inc TSLA.O erased early declines to rise 3.0% as investors digested the EV maker's upbeat earnings, despite the company warning of supply-chain hurdles.
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American Airlines AAL.O rose 1.2% after posting a smaller-than-expected quarterly loss, while Southwest Airlines Co LUV.N fell 1.5% after it said it expected current quarter profits to remain elusive. By Shreyashi Sanyal and Devik Jain Oct 21 (Reuters) - The Dow on Thursday eased from a record high hit in the previous session as IBM shares fell after its quarterly report, with the potential impact of supply chain disruptions and labor shortages on profits taking the center stage this earnings season. "Stocks are climbing to new highs and anytime the market is trading at or near its all-time high, it is not unusual to see a little bit of more intraday volatility...and it should not concern investors," said Tom Mantione, managing director, UBS Private Wealth Management in Stamford, Connecticut.
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American Airlines AAL.O rose 1.2% after posting a smaller-than-expected quarterly loss, while Southwest Airlines Co LUV.N fell 1.5% after it said it expected current quarter profits to remain elusive. By Shreyashi Sanyal and Devik Jain Oct 21 (Reuters) - The Dow on Thursday eased from a record high hit in the previous session as IBM shares fell after its quarterly report, with the potential impact of supply chain disruptions and labor shortages on profits taking the center stage this earnings season. The benchmark S&P 500 index .SPX edged lower, but was just about 10 points short of its early September record, while the Nasdaq .IXIC drew support from a rise in mega-cap growth companies.
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4092.0
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2021-10-21 00:00:00 UTC
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Will Airlines Send the Stock Market to New Highs?
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AAL
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https://www.nasdaq.com/articles/will-airlines-send-the-stock-market-to-new-highs-2021-10-21
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nan
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nan
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The stock market got off to a slow start on Thursday, giving back just a small portion of the huge gains that it has enjoyed over the past couple of weeks. Immediately after the market opened at 9:30 a.m. EDT, the Dow Jones Industrial Average (DJINDICES: ^DJI) was down 62 points to 35,548. The S&P 500 (SNPINDEX: ^GSPC) fell 5 points to 4,531, and the Nasdaq Composite (NASDAQINDEX: ^IXIC) declined 12 points to 15,110.
Several airline stocks reported their financial results early Thursday morning, and the numbers have many investors looking at the implications for the transportation sector and the broader economy. Below, we'll look at what Southwest Airlines (NYSE: LUV), American Airlines Group (NASDAQ: AAL), and Alaska Air (NYSE: ALK) reported in more detail.
Image source: Getty Images.
Southwest sees improving conditions -- with one catch
Shares of Southwest opened slightly higher on Thursday morning. The carrier's third-quarter financial results included some encouraging signs of recovery, but there are also some big challenges to overcome.
Southwest's year-over-year numbers were predictably strong. Operating revenue soared 161% to $4.68 billion, lifted by a near-tripling in passenger revenue. Southwest reversed a year-ago loss with net income of $446 million, translating to earnings of $0.73 per share. However, those bottom-line gains stemmed from $763 million of federal stimulus money coming in. Moreover, operating revenue was down 17% compared to pre-pandemic levels two years ago.
The surge of the COVID-19 delta variant hurt summer travel in August and September, halting favorable trends that had led to a strong July. Southwest does see conditions improving in the fourth quarter, as momentum in leisure and business travel is building once again.
The fly in the ointment, though, is the rising cost of fuel. With crude oil prices climbing sharply, jet fuel prices have followed suit. Southwest has some modest hedges, but fuel will still likely weigh on earnings in the near future.
Much the same for other airlines
Results for other airlines reporting Thursday had a lot of similarities. American saw revenue climb 20% from three months ago, but its profit of $0.25 per share came largely from federal subsidies. Without adjustments, the airline would have posted a $0.99 per share loss. American is working hard to pay down extensive debt, but it highlights its available liquidity as a key to its long-term strategy.
Alaska returned to profitability even excluding special items, posting income of $187 million, or $1.47 per share. Passenger revenue more than tripled year over year in the third quarter, boosting total operating revenue by nearly 180%. Prepayments of debt and contributions to pension plans show that Alaska is on a stronger footing financially than it was just a year ago.
In general, the latest airline reports repeated much of what we've seen in recent days from other airlines. United Airlines Holdings (NASDAQ: UAL) reported on Wednesday that has high hopes for a recovery, but it's still losing money and expects higher fuel prices to add to losses for the remainder of 2021. For the most part, airlines appear to be looking ahead to 2022 in hopes that a reduced impact from the pandemic could finally start to get travel levels back toward where they were in 2018 and 2019.
Airlines play a vital role in the economy, and federal support to help keep them afloat appears to have been instrumental in getting them through the toughest times. Now, it'll be up to Southwest, American, Alaska, and their peers to demonstrate they can fly on their own. If they can, then they could help spur positive investor sentiment that could send the whole market to new highs.
10 stocks we like better than Southwest Airlines
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Dan Caplinger has no position in any of the stocks mentioned. The Motley Fool recommends Alaska Air Group and Southwest Airlines. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Below, we'll look at what Southwest Airlines (NYSE: LUV), American Airlines Group (NASDAQ: AAL), and Alaska Air (NYSE: ALK) reported in more detail. The stock market got off to a slow start on Thursday, giving back just a small portion of the huge gains that it has enjoyed over the past couple of weeks. Several airline stocks reported their financial results early Thursday morning, and the numbers have many investors looking at the implications for the transportation sector and the broader economy.
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Below, we'll look at what Southwest Airlines (NYSE: LUV), American Airlines Group (NASDAQ: AAL), and Alaska Air (NYSE: ALK) reported in more detail. Several airline stocks reported their financial results early Thursday morning, and the numbers have many investors looking at the implications for the transportation sector and the broader economy. The Motley Fool recommends Alaska Air Group and Southwest Airlines.
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Below, we'll look at what Southwest Airlines (NYSE: LUV), American Airlines Group (NASDAQ: AAL), and Alaska Air (NYSE: ALK) reported in more detail. Several airline stocks reported their financial results early Thursday morning, and the numbers have many investors looking at the implications for the transportation sector and the broader economy. 10 stocks we like better than Southwest Airlines When our award-winning analyst team has a stock tip, it can pay to listen.
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Below, we'll look at what Southwest Airlines (NYSE: LUV), American Airlines Group (NASDAQ: AAL), and Alaska Air (NYSE: ALK) reported in more detail. Several airline stocks reported their financial results early Thursday morning, and the numbers have many investors looking at the implications for the transportation sector and the broader economy. Moreover, operating revenue was down 17% compared to pre-pandemic levels two years ago.
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4093.0
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2021-10-21 00:00:00 UTC
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Wall Street flat, IBM results weigh on technology stocks
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https://www.nasdaq.com/articles/wall-street-flat-ibm-results-weigh-on-technology-stocks-2021-10-21
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By Shreyashi Sanyal and Devik Jain
Oct 21 (Reuters) - U.S. stock indexes remained subdued on Thursday as losses in IBM pressured technology stocks, with investors focusing on the impact of supply chain disruption and labor shortages on corporate profits.
The Dow Jones Industrials Average .DJI retreated after hitting an intraday record high in the previous session, while the benchmark S&P 500 index .SPX was just about 15 points short of from its early September record.
"Stocks are climbing to new highs and anytime the market is trading at or near its all-time high, it is not unusual to see a little bit of more intraday volatility...and it should not concern investors," said Tom Mantione, managing director, UBS Private Wealth Management in Stamford, Connecticut.
Eight of the 11 major S&P 500 sectors were trading lower, with technology stocks .SPLRCT weighing the most.
IBM IBM.N tumbled 6.8% after it missed market estimates for quarterly revenue as its managed infrastructure business suffered from a decline in orders.
Investors are keeping a close eye on growth outlook from companies facing rising costs, labor shortages and supply chain disruptions, with analysts expecting profit of S&P 500 companies to rise 33.7% from a year earlier, according to Refinitiv data.
"Large parts of the S&P are not going to be impacted - software, healthcare, real estate, utilities, energy, materials, financials would not see any of that as an issue," Mantione said.
Tesla Inc TSLA.O erased early declines to rise 2.4% as investors digested the EV maker's upbeat earnings, despite the company warning of supply-chain hurdles.
Other mega-cap stocks including Facebook Inc FB.O, Apple Inc AAPL.O and Amazon.com Inc AMZN.O were mixed by early trading.
Data showed the number of Americans filing new claims for unemployment benefits dropped to a 19-month low last week, pointing to a tightening labor market, though a shortage of workers could keep the pace of hiring moderate in October.
At 9:51 a.m. ET, the Dow Jones Industrial Average .DJI was down 53.81 points, or 0.15%, at 35,555.53, the S&P 500 .SPX was down 1.72 points, or 0.04%, at 4,534.47 and the Nasdaq Composite .IXIC was up 28.53 points, or 0.19%, at 15,150.20.
AT&T Inc T.N rose 0.7% after the telecom operator's quarterly revenue and monthly phone bill paying subscriber additions beat market expectations.
American Airlines AAL.O rose 1.5% after posting a smaller-than-expected quarterly loss, while Southwest Airlines Co LUV.N edged 0.4% lower even as it posted a smaller third-quarter loss.
HP Inc HPQ.N gained 5.6% as brokerages raised their price targets on the stock after the personal computer and printer maker forecast upbeat fiscal 2022 adjusted profit and raised its annual dividend.
Advancing issues outnumbered decliners by a 1.03-to-1 ratio on the NYSE and by a 1.34-to-1 ratio on the Nasdaq.
The S&P index recorded 38 new 52-week highs and no new low, while the Nasdaq recorded 58 new highs and 11 new lows.
(Reporting by Shreyashi Sanyal and Devik Jain in Bengaluru; Editing by Arun Koyyur)
((Shreyashi.Sanyal@thomsonreuters.com; +1 646 223 8780; +91 961 144 3740; Twitter: https://twitter.com/s_shreyashi;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines AAL.O rose 1.5% after posting a smaller-than-expected quarterly loss, while Southwest Airlines Co LUV.N edged 0.4% lower even as it posted a smaller third-quarter loss. Tesla Inc TSLA.O erased early declines to rise 2.4% as investors digested the EV maker's upbeat earnings, despite the company warning of supply-chain hurdles. Data showed the number of Americans filing new claims for unemployment benefits dropped to a 19-month low last week, pointing to a tightening labor market, though a shortage of workers could keep the pace of hiring moderate in October.
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American Airlines AAL.O rose 1.5% after posting a smaller-than-expected quarterly loss, while Southwest Airlines Co LUV.N edged 0.4% lower even as it posted a smaller third-quarter loss. By Shreyashi Sanyal and Devik Jain Oct 21 (Reuters) - U.S. stock indexes remained subdued on Thursday as losses in IBM pressured technology stocks, with investors focusing on the impact of supply chain disruption and labor shortages on corporate profits. Investors are keeping a close eye on growth outlook from companies facing rising costs, labor shortages and supply chain disruptions, with analysts expecting profit of S&P 500 companies to rise 33.7% from a year earlier, according to Refinitiv data.
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American Airlines AAL.O rose 1.5% after posting a smaller-than-expected quarterly loss, while Southwest Airlines Co LUV.N edged 0.4% lower even as it posted a smaller third-quarter loss. By Shreyashi Sanyal and Devik Jain Oct 21 (Reuters) - U.S. stock indexes remained subdued on Thursday as losses in IBM pressured technology stocks, with investors focusing on the impact of supply chain disruption and labor shortages on corporate profits. The Dow Jones Industrials Average .DJI retreated after hitting an intraday record high in the previous session, while the benchmark S&P 500 index .SPX was just about 15 points short of from its early September record.
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American Airlines AAL.O rose 1.5% after posting a smaller-than-expected quarterly loss, while Southwest Airlines Co LUV.N edged 0.4% lower even as it posted a smaller third-quarter loss. By Shreyashi Sanyal and Devik Jain Oct 21 (Reuters) - U.S. stock indexes remained subdued on Thursday as losses in IBM pressured technology stocks, with investors focusing on the impact of supply chain disruption and labor shortages on corporate profits. IBM IBM.N tumbled 6.8% after it missed market estimates for quarterly revenue as its managed infrastructure business suffered from a decline in orders.
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4094.0
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2021-10-21 00:00:00 UTC
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US STOCKS-Wall St set for lower open after Tesla, IBM quarterly results
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AAL
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https://www.nasdaq.com/articles/us-stocks-wall-st-set-for-lower-open-after-tesla-ibm-quarterly-results-2021-10-21
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nan
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By Shreyashi Sanyal and Devik Jain
Oct 21 (Reuters) - U.S. stock indexes were set to open lower on Thursday as IBM and Tesla fell after their quarterly results, with investors awaiting more reports to see the impact of supply chain disruption and labor shortages on companies.
Some market players pointed to fading enthusiasm after the Dow Jones Industrials Average .DJI hit an intraday record high in the previous session and the benchmark index .SPX came close to its early September record.
"Stocks are climbing to new highs and anytime the market is trading at or near its all-time high, it is not unusual to see a little bit of more intraday volatility...and it should not concern investors," said Tom Mantione, managing director, UBS Private Wealth Management in Stamford, Connecticut.
Tesla Inc TSLA.O fell 1.4% in premarket trading as it said on Wednesday its upcoming factories and supply-chain hurdles would put pressure on its margins after it beat Wall Street expectations for third-quarter revenue.
Other mega-cap stocks including Facebook Inc FB.O, Apple Inc AAPL.O and Amazon.com Inc AMZN.O fell between 0.2% and 0.3% on Thursday.
IBM IBM.N tumbled 5.1% after it missed market estimates for quarterly revenue as its managed infrastructure business suffered from a decline in orders.
Investors are keeping a close eye on growth outlook from companies facing rising costs, labor shortages and supply chain disruptions, with analysts expecting profit of S&P 500 companies to rise 33% from a year earlier, according to Refinitiv data.
"Large parts of the S&P are not going to be impacted - software, healthcare, real estate, utilities, energy, materials, financials would not see any of that as an issue," Mantione said.
Data showed the number of Americans filing new claims for unemployment benefits dropped to a 19-month low last week, pointing to a tightening labor market, though a shortage of workers could keep the pace of hiring moderate in October.
At 8:42 a.m. ET, Dow e-minis 1YMcv1 were down 59 points, or 0.17%, S&P 500 e-minis EScv1 were down 7.75 points, or 0.17%, and Nasdaq 100 e-minis NQcv1 were down 30.75 points, or 0.2%.
AT&T Inc T.N rose 1.2% after the telecom operator's quarterly revenue and monthly phone bill paying subscriber additions beat market expectations.
American Airlines AAL.O rose 0.8% after posting a smaller-than-expected quarterly loss, while Southwest Airlines Co LUV.N edged 0.3% lower even as it posted a smaller third-quarter loss.
HP Inc HPQ.N gained 4.4% as brokerages raised their price targets on the stock after the PC and printer maker forecast upbeat fiscal 2022 adjusted profit and raised its annual dividend.
(Reporting by Shreyashi Sanyal and Devik Jain in Bengaluru; Editing by Arun Koyyur)
((Shreyashi.Sanyal@thomsonreuters.com; +1 646 223 8780; +91 961 144 3740; Twitter: https://twitter.com/s_shreyashi;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines AAL.O rose 0.8% after posting a smaller-than-expected quarterly loss, while Southwest Airlines Co LUV.N edged 0.3% lower even as it posted a smaller third-quarter loss. By Shreyashi Sanyal and Devik Jain Oct 21 (Reuters) - U.S. stock indexes were set to open lower on Thursday as IBM and Tesla fell after their quarterly results, with investors awaiting more reports to see the impact of supply chain disruption and labor shortages on companies. Tesla Inc TSLA.O fell 1.4% in premarket trading as it said on Wednesday its upcoming factories and supply-chain hurdles would put pressure on its margins after it beat Wall Street expectations for third-quarter revenue.
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American Airlines AAL.O rose 0.8% after posting a smaller-than-expected quarterly loss, while Southwest Airlines Co LUV.N edged 0.3% lower even as it posted a smaller third-quarter loss. By Shreyashi Sanyal and Devik Jain Oct 21 (Reuters) - U.S. stock indexes were set to open lower on Thursday as IBM and Tesla fell after their quarterly results, with investors awaiting more reports to see the impact of supply chain disruption and labor shortages on companies. Investors are keeping a close eye on growth outlook from companies facing rising costs, labor shortages and supply chain disruptions, with analysts expecting profit of S&P 500 companies to rise 33% from a year earlier, according to Refinitiv data.
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American Airlines AAL.O rose 0.8% after posting a smaller-than-expected quarterly loss, while Southwest Airlines Co LUV.N edged 0.3% lower even as it posted a smaller third-quarter loss. By Shreyashi Sanyal and Devik Jain Oct 21 (Reuters) - U.S. stock indexes were set to open lower on Thursday as IBM and Tesla fell after their quarterly results, with investors awaiting more reports to see the impact of supply chain disruption and labor shortages on companies. "Stocks are climbing to new highs and anytime the market is trading at or near its all-time high, it is not unusual to see a little bit of more intraday volatility...and it should not concern investors," said Tom Mantione, managing director, UBS Private Wealth Management in Stamford, Connecticut.
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American Airlines AAL.O rose 0.8% after posting a smaller-than-expected quarterly loss, while Southwest Airlines Co LUV.N edged 0.3% lower even as it posted a smaller third-quarter loss. By Shreyashi Sanyal and Devik Jain Oct 21 (Reuters) - U.S. stock indexes were set to open lower on Thursday as IBM and Tesla fell after their quarterly results, with investors awaiting more reports to see the impact of supply chain disruption and labor shortages on companies. Some market players pointed to fading enthusiasm after the Dow Jones Industrials Average .DJI hit an intraday record high in the previous session and the benchmark index .SPX came close to its early September record.
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4095.0
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2021-10-21 00:00:00 UTC
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American, Southwest flag inflationary risks after reporting a travel rebound
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https://www.nasdaq.com/articles/american-southwest-flag-inflationary-risks-after-reporting-a-travel-rebound-2021-10-21
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By Rajesh Kumar Singh and Sanjana Shivdas
Oct 21 (Reuters) - U.S. carriers American Airlines AAL.O and Southwest Airlines LUV.N on Thursday warned mounting inflationary pressures could overshadow strong holiday demand and delay a complete return to profit.
Both the Texas-based carriers posted a smaller-than-expected loss in the third quarter, but said rising fuel prices as well as higher labor costs are hurting earnings in the quarter through December.
Oil prices have surged to multi-year highs this year, threatening a fragile recovery in the airline industry. American, for example, spent nearly 70% more on jet fuel in the latest quarter than a year ago. Southwest's fuel costs surged by 154% from a year ago.
Higher fuel costs tend to lead to result in less flown capacity and higher fares. Rival Delta Air Lines Inc DAL.N, which expects fuel prices to result in a pre-tax loss in the current quarter, has suggested that it might pass along the increased costs to consumers.
Carriers are also trying to hire workers amid a pick-up in travel demand.
Southwest said it was aggressively hiring, with the aim of having about 5,000 new employees by the end of this year.
The company has had to cancel flights en masse partly due to staff shortages, having earlier added more flights to its schedule to capitalize on a hoped-for recovery in air travel as pandemic restrictions eased.
Such cancellations earlier this month are expected to result in a $75-million hit to the carrier's October revenue.
"Third quarter 2021 was a challenge for us, operationally," Chief Executive Gary Kelly said in a statement.
"We have reined in our capacity plans to adjust to the current staffing environment."
Southwest expects its capacity in the December quarter to remain below the corresponding period in 2019. In the first quarter of 2022, its capacity is estimated to be about 6% lower than the pre-pandemic levels.
American said its capacity in the current quarter is expected to be down about 11% to 13% versus the fourth quarter of 2019. While revenue in the fourth quarter is estimated to recover to 80% of the 2019 levels from 75% in the September quarter, it forecast a pre-tax margin of minus 16% to minus 18%, excluding special items.
The company reported an adjusted loss of 99 cents per share in the third quarter, smaller than a loss of $5.54 a year ago and a loss of $1.04 estimated by analysts in a Refinitiv survey.
Southwest's adjusted loss for the quarter came in at 23 cents per share, compared with $1.99 per share last year. Analysts on average expected Southwest to report a loss of 27 cents per share, according to Refinitiv data.
Southwest's shares fell 1.3% and American's rose 1.5%.
(Reporting by Rajesh Kumar Singh in Chicago and Sanjana Shivdas in Bengaluru; Editing by Vinay Dwivedi, Bernadette Baum and Nick Zieminski)
((rajeshkumar.singh@thomsonreuters.com; +1-312-408-8537; 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.
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By Rajesh Kumar Singh and Sanjana Shivdas Oct 21 (Reuters) - U.S. carriers American Airlines AAL.O and Southwest Airlines LUV.N on Thursday warned mounting inflationary pressures could overshadow strong holiday demand and delay a complete return to profit. Oil prices have surged to multi-year highs this year, threatening a fragile recovery in the airline industry. Rival Delta Air Lines Inc DAL.N, which expects fuel prices to result in a pre-tax loss in the current quarter, has suggested that it might pass along the increased costs to consumers.
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By Rajesh Kumar Singh and Sanjana Shivdas Oct 21 (Reuters) - U.S. carriers American Airlines AAL.O and Southwest Airlines LUV.N on Thursday warned mounting inflationary pressures could overshadow strong holiday demand and delay a complete return to profit. Rival Delta Air Lines Inc DAL.N, which expects fuel prices to result in a pre-tax loss in the current quarter, has suggested that it might pass along the increased costs to consumers. The company reported an adjusted loss of 99 cents per share in the third quarter, smaller than a loss of $5.54 a year ago and a loss of $1.04 estimated by analysts in a Refinitiv survey.
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By Rajesh Kumar Singh and Sanjana Shivdas Oct 21 (Reuters) - U.S. carriers American Airlines AAL.O and Southwest Airlines LUV.N on Thursday warned mounting inflationary pressures could overshadow strong holiday demand and delay a complete return to profit. Both the Texas-based carriers posted a smaller-than-expected loss in the third quarter, but said rising fuel prices as well as higher labor costs are hurting earnings in the quarter through December. The company reported an adjusted loss of 99 cents per share in the third quarter, smaller than a loss of $5.54 a year ago and a loss of $1.04 estimated by analysts in a Refinitiv survey.
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By Rajesh Kumar Singh and Sanjana Shivdas Oct 21 (Reuters) - U.S. carriers American Airlines AAL.O and Southwest Airlines LUV.N on Thursday warned mounting inflationary pressures could overshadow strong holiday demand and delay a complete return to profit. Southwest's fuel costs surged by 154% from a year ago. American said its capacity in the current quarter is expected to be down about 11% to 13% versus the fourth quarter of 2019.
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4096.0
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2021-10-21 00:00:00 UTC
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American Airlines Group Q3 21 Earnings Conference Call At 8:30 AM ET
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AAL
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https://www.nasdaq.com/articles/american-airlines-group-q3-21-earnings-conference-call-at-8%3A30-am-et-2021-10-21
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nan
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nan
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(RTTNews) - American Airlines Group Inc. (AAL) will host a conference call at 8:30 AM ET on October 21, 2021, to discuss Q3 21 earnings results.
To access the live webcast, log on to http://aa.com/investorrelations
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - American Airlines Group Inc. (AAL) will host a conference call at 8:30 AM ET on October 21, 2021, to discuss Q3 21 earnings results. To access the live webcast, log on to http://aa.com/investorrelations The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - American Airlines Group Inc. (AAL) will host a conference call at 8:30 AM ET on October 21, 2021, to discuss Q3 21 earnings results. To access the live webcast, log on to http://aa.com/investorrelations The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - American Airlines Group Inc. (AAL) will host a conference call at 8:30 AM ET on October 21, 2021, to discuss Q3 21 earnings results. To access the live webcast, log on to http://aa.com/investorrelations The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - American Airlines Group Inc. (AAL) will host a conference call at 8:30 AM ET on October 21, 2021, to discuss Q3 21 earnings results. To access the live webcast, log on to http://aa.com/investorrelations The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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4097.0
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2021-10-21 00:00:00 UTC
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American Airlines posts profit vs year-ago loss as travel demand improves
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AAL
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https://www.nasdaq.com/articles/american-airlines-posts-profit-vs-year-ago-loss-as-travel-demand-improves-2021-10-21
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nan
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nan
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Adds details on operating revenue, liquidity; CEO quote
Oct 21 (Reuters) - American Airlines Group Inc AAL.O reported a quarterly profit compared to a year-ago loss on Thursday, as easing COVID-19 curbs strengthened travel demand ahead of the peak holiday season.
As the United States opens its borders to vaccinated foreign travelers on Nov. 8, U.S. carriers are expecting a strong holiday season after the health crisis sent travel demand plummeting in 2020.
"While the rise of the COVID-19 delta variant delayed some of our revenue recovery, it has not stopped our progress," Chief Executive Officer Doug Parker said.
The No.1 U.S. airline reported a net income of $169 million, or 25 cents per share, in the third quarter ended Sept. 30, compared with a loss of $2.40 billion, or $4.71 per share, a year earlier.
Excluding items, the company posted a third-quarter net loss of $641 million, or 99 cents per share.
Total operating revenue jumped 183% to $8.97 billion.
The airline ended the quarter with about $18 billion of total available liquidity.
(Reporting by Sanjana Shivdas in Bengaluru; Editing by Vinay Dwivedi)
((SanjanaSitara.Shivdas@thomsonreuters.com; within U.S. +1 646 223 8780, outside U.S. +91 80 6749 1642; Twitter: @SanjanaShivdas;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Adds details on operating revenue, liquidity; CEO quote Oct 21 (Reuters) - American Airlines Group Inc AAL.O reported a quarterly profit compared to a year-ago loss on Thursday, as easing COVID-19 curbs strengthened travel demand ahead of the peak holiday season. "While the rise of the COVID-19 delta variant delayed some of our revenue recovery, it has not stopped our progress," Chief Executive Officer Doug Parker said. Excluding items, the company posted a third-quarter net loss of $641 million, or 99 cents per share.
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Adds details on operating revenue, liquidity; CEO quote Oct 21 (Reuters) - American Airlines Group Inc AAL.O reported a quarterly profit compared to a year-ago loss on Thursday, as easing COVID-19 curbs strengthened travel demand ahead of the peak holiday season. The No.1 U.S. airline reported a net income of $169 million, or 25 cents per share, in the third quarter ended Sept. 30, compared with a loss of $2.40 billion, or $4.71 per share, a year earlier. Excluding items, the company posted a third-quarter net loss of $641 million, or 99 cents per share.
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Adds details on operating revenue, liquidity; CEO quote Oct 21 (Reuters) - American Airlines Group Inc AAL.O reported a quarterly profit compared to a year-ago loss on Thursday, as easing COVID-19 curbs strengthened travel demand ahead of the peak holiday season. The No.1 U.S. airline reported a net income of $169 million, or 25 cents per share, in the third quarter ended Sept. 30, compared with a loss of $2.40 billion, or $4.71 per share, a year earlier. (Reporting by Sanjana Shivdas in Bengaluru; Editing by Vinay Dwivedi) ((SanjanaSitara.Shivdas@thomsonreuters.com; within U.S. +1 646 223 8780, outside U.S. +91 80 6749 1642; Twitter: @SanjanaShivdas;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Adds details on operating revenue, liquidity; CEO quote Oct 21 (Reuters) - American Airlines Group Inc AAL.O reported a quarterly profit compared to a year-ago loss on Thursday, as easing COVID-19 curbs strengthened travel demand ahead of the peak holiday season. The No.1 U.S. airline reported a net income of $169 million, or 25 cents per share, in the third quarter ended Sept. 30, compared with a loss of $2.40 billion, or $4.71 per share, a year earlier. The airline ended the quarter with about $18 billion of total available liquidity.
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4098.0
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2021-10-21 00:00:00 UTC
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Top Stock Market News For Today October 21, 2021
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AAL
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https://www.nasdaq.com/articles/top-stock-market-news-for-today-october-21-2021-2021-10-21
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nan
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nan
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Stock Market Futures Ticked Lower Ahead Of Jobless Claims
U.S. stock futures edged lower on Thursday morning ahead of a string of earnings reports and economic indicators including jobless claims and home sales. Stocks have risen in recent days after stronger-than-expected earnings have eased concerns that sent markets lower at the start of fall. Of the 80 companies on the S&P 500 to have reported through Wednesday, 81% had topped expectations, according to FactSet.
“We’ve gone through a period of hesitation that’s brought a bit of volatility but I think stocks will keep trending higher,” said Paul Jackson, head of asset allocation research at Invesco. He expects households to keep spending savings accumulated during the pandemic.
On the economic front, investors will also be looking at the weekly jobless claims that are due at 8.30 a.m. ET. Meanwhile, existing home sales data are expected to have rebounded in September after an August slowdown. The home sales data will be available at 10 a.m. ET. As of 6:50 a.m. ET, the Dow, S&P 500, and Nasdaq futures are declining by 0.30%, 0.25% and 0.17% respectively.
Bitcoin Rallies To Fresh Peak After ETF Launch
Bitcoin rallied to a record high when ProShares Bitcoin Strategy ETF (NYSEARCA: BITO) made its stock market debut on Tuesday. Now, anyone with a brokerage account will be able to buy and sell a Bitcoin-backed financial product on the stock market. Since the Bitcoin ETF made its debut, it topped $1 billion in trading volume on its first day. That makes it one of the top ETF debuts in history. And that has given rise to a fresh wave of bullish predictions. It’s worth pointing out that the largest cryptocurrency has more than doubled in price this year.
“The key here is whether we are able to establish support above $65,000 … If we can, the classic Q4 crypto rallies we’ve seen in most years could take bitcoin towards some of the loftier price predictions we’ve seen over the past several months. If sell pressure takes over, though, our next leg up could take a while to materialize.”- Jesse Proudman, CEO of crypto robo-advisor Makara.
After a successful debut of Bitcoin ETF, Valkyrie’s Bitcoin-linked ETF will be the second Bitcoin-backed ETF in the U.S. The Valkyrie Bitcoin Strategy ETF planned to trade under the ticker ‘BTF’ will debut on Friday. With so much enthusiasm surrounding Bitcoin ETF launches, will Bitcoin continue to swing upwards?
[Read More] Best EV Stocks To Buy Right Now? 4 In Focus
Snap (SNAP) Earnings In Focus After The Stock Market Closes Today
Snap (NYSE: SNAP) is set to report its third-quarter financials after the stock market closes today. Investors are anticipating to see whether Snap can maintain its momentum when it releases its earnings results this evening. To recap, the company has beaten consensus estimates for revenues and earnings in recent quarters. That’s because the company’s strong niche and expansion into synergistic opportunities like augmented reality could help it maintain the bull run.
For the quarter ended September 30, the company projects that daily active users will climb to 301 million. It also expects revenue to grow between 58% and 60%. Snap’s performance is quite remarkable given that just a couple of years ago it was struggling to compete with rivals such as Facebook (NASDAQ:FB). The latter copied some of the features that Snap launched to lure its young audience.
As of late, Snap trades approximately 33 times sales. Now, that certainly doesn’t look cheap. But many investors are optimistic about the company’s growth and its potential in augmented reality (AR). The company’s management expects third-quarter sales to increase by up to 60% to $1.1 billion. Meanwhile, adjusted EBITDA could come in between $100 million and $120 million compared to $56 million in the prior-year period. Considering all these, would you bet on SNAP stock ahead of its earnings?
[Read More] Top Reddit Stocks To Buy Right Now? 5 For Your Late 2021 Watchlist
Tesla (TSLA) Bucks Global Semiconductor Shortage With Record Revenue
Despite the global semiconductor shortages, Tesla (NASDAQ: TSLA) reported impressive results that largely beat estimates. The largest EV manufacturer continues to make waves with record deliveries even as supply challenges weighed broadly on the auto industry. Like some of you may have anticipated, the more affordable Model 3 and Model Y vehicles played crucial roles in driving third-quarter deliveries. However, quarterly revenue came in slightly short of consensus expectations. Investors appear to be responding to that, with TSLA stock trading slightly lower in pre-market trading today.
From the quarterly report, Tesla reported operating earnings of $2.1 billion, up 30% from its previous record earnings in the second quarter. Revenue rose 15% to $13.8 billion, slightly below estimates. Meanwhile, earnings per share is 17% better than the consensus of analysts surveyed by Refinitiv. Still, the company warned that the supply chain woes would still be a problem despite its success in overcoming those issues in the third quarter.
“This year has been just a constant struggle with parts supply … We’re just basically limited by multiple supply chain shortages, like so many supply chains of so many types, not just chips … We should be through our severe supply chain shortages in ’23. I’m optimistic that that will be the case.“- Elon Musk, CEO of Tesla Motors
[Read More] Top Stocks To Buy Now? 4 Consumer Stocks To Consider
Notable Earnings To Watch In The Stock Market Today
As the third-quarter earnings season continues to ramp up, there is no shortage of earnings to take note of today. Should you be keen on jumping on pre-market earnings, there are plenty to choose from. For instance, we have notable names such as American Airlines (NASDAQ: AAL), Southwest Airlines (NYSE: LUV), AT&T (NYSE: T) and Nucor (NYSE: NUE). Not to mention, consumer names like Crocs (NASDAQ: CROX) would also be in focus.
On the flip side, for those looking to track earnings after the closing bell, there are several on tap as well. These include the likes of Snap, Intel (NASDAQ: INTC) and Chipotle Mexican Grill (NYSE: CMG). Whether it is keeping up with soaring crypto prices or digesting earnings and key economic data, investors have a lot to keep track of in the stock market today.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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For instance, we have notable names such as American Airlines (NASDAQ: AAL), Southwest Airlines (NYSE: LUV), AT&T (NYSE: T) and Nucor (NYSE: NUE). Stocks have risen in recent days after stronger-than-expected earnings have eased concerns that sent markets lower at the start of fall. “We’ve gone through a period of hesitation that’s brought a bit of volatility but I think stocks will keep trending higher,” said Paul Jackson, head of asset allocation research at Invesco.
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For instance, we have notable names such as American Airlines (NASDAQ: AAL), Southwest Airlines (NYSE: LUV), AT&T (NYSE: T) and Nucor (NYSE: NUE). Bitcoin Rallies To Fresh Peak After ETF Launch Bitcoin rallied to a record high when ProShares Bitcoin Strategy ETF (NYSEARCA: BITO) made its stock market debut on Tuesday. 4 In Focus Snap (SNAP) Earnings In Focus After The Stock Market Closes Today Snap (NYSE: SNAP) is set to report its third-quarter financials after the stock market closes today.
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For instance, we have notable names such as American Airlines (NASDAQ: AAL), Southwest Airlines (NYSE: LUV), AT&T (NYSE: T) and Nucor (NYSE: NUE). Stock Market Futures Ticked Lower Ahead Of Jobless Claims U.S. stock futures edged lower on Thursday morning ahead of a string of earnings reports and economic indicators including jobless claims and home sales. 4 In Focus Snap (SNAP) Earnings In Focus After The Stock Market Closes Today Snap (NYSE: SNAP) is set to report its third-quarter financials after the stock market closes today.
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For instance, we have notable names such as American Airlines (NASDAQ: AAL), Southwest Airlines (NYSE: LUV), AT&T (NYSE: T) and Nucor (NYSE: NUE). “The key here is whether we are able to establish support above $65,000 … If we can, the classic Q4 crypto rallies we’ve seen in most years could take bitcoin towards some of the loftier price predictions we’ve seen over the past several months. 4 In Focus Snap (SNAP) Earnings In Focus After The Stock Market Closes Today Snap (NYSE: SNAP) is set to report its third-quarter financials after the stock market closes today.
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4099.0
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2021-10-21 00:00:00 UTC
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3 Stocks to Buy as the Economy Recovers
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AAL
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https://www.nasdaq.com/articles/3-stocks-to-buy-as-the-economy-recovers-2021-10-21
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nan
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nan
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One way to tell that the economy is doing better is that interest rate increases look to be imminent. In March, the expectation was that interest rates wouldn't rise until 2024. But now, half of the policymakers at the Federal Reserve believe interest rate hikes will happen as early as next year.
While interest rate increases won't be great news for many businesses, it's still a positive sign overall as it means the economy is in strong shape. And three stocks that you should consider buying on that development include AmerisourceBergen (NYSE: ABC), JPMorgan Chase (NYSE: JPM), and Delta Air Lines (NYSE: DAL).
Image source: Getty Images.
1. AmerisourceBergen
Medical distribution company AmerisourceBergen will certainly benefit from a return to normalcy in the world. As more patients visit the doctor's office, that will inevitably lead to more prescriptions, which will help fuel the company's top line. Plus, it has even more exposure to that sector now that it has acquired pharmaceutical company Alliance Healthcare from Walgreens Boots Alliance for $6.5 billion (the deal officially closed in June).
Alliance Healthcare is one of the largest pharmaceutical wholesalers in Europe, helping AmerisourceBergen extend its vast reach across the globe. In fiscal 2020, Alliance's businesses generated $19 billion in revenue.
The company projects that for fiscal 2021, its adjusted diluted earnings per share will grow by 16% to 18%, up to $9.30. In its most recent quarter, for the period ending June 30, AmerisourceBergen reported $53.4 billion in revenue, a year-over-year increase of 17.7%. Although it got a boost from the inclusion of Alliance Healthcare within its results, its pharmaceutical distribution business (which makes up more than 90% of its revenue) grew at a solid rate of 13.2%. Over the past year, shares of AmerisourceBergen have risen 30%, outperforming the S&P 500, which has increased 20% during that time frame.
AmerisourceBergen is in terrific shape, and with the healthcare stock trading at just 14 times its earnings, it's a relatively cheap investment to own (the average stock in the Health Care Select SPDR Fund trades at a multiple of 27).
2. JPMorgan Chase
Financial institutions like JPMorgan Chase are among the few businesses that will benefit from rising interest rates since that will allow them to pocket more of a spread between what they pay to depositors and what they charge for loans.
JPMorgan Chase reported earnings this month, for the period ending Sept. 30, sales of $30.4 billion beat analyst estimates of $29.8 billion. And its beat on the bottom line was even better: EPS of $3.74 versus Wall Street projections of just $3. A big reason for the strong performance was a release of credit reserves (which indicates the bank is less worried about the risk of default, due to a stronger economy), which had a $0.52 positive effect on EPS.
A great way to bet on the success of the economy is to buy shares of a top bank like JPMorgan Chase. It also makes for an excellent dividend stock to hold. The company raised its dividend payment in September, hiking payouts from $0.90 every quarter up to $1, for an annual yield of 2.4% -- ahead of both the 1.5% that AmerisourceBergen pays and the S&P 500 average of less than 1.3%. And if the economy continues to grow, it's likely JPMorgan builds on these results and investors see their dividends climb even higher.
3. Delta Air Lines
Another company that's bound to do well in a return to normalcy is Delta Air Lines. The airline is coming off an improved quarter as more people have been traveling during the past three months. The company's adjusted EPS of $0.30 (also for the period that extended until the end of September) was nearly double the $0.17 analysts were expecting. And revenue of $9.2 billion also cleared Wall Street projections of $8.4 billion. Although the company is still not at pre-pandemic levels, Delta is flying at 80% capacity. That number is likely to rise as concerns around the pandemic subside.
The company did express concern that rising fuel prices will likely hurt next quarter's results and that it will incur a "modest loss." The price of oil recently hit highs not seen since 2014. But one of the reasons I wouldn't be too concerned about this is that the higher oil prices go, the more of an incentive there will be for the Organization of the Petroleum Exporting Countries (OPEC) to increase production (restricting it is one way they have been able to support oil prices to keep them from falling). For years, countries have been wanting to produce more oil but have had to restrict output because of an excess of supply.
But even amid higher oil prices, the International Air Transport Association projects that airlines will perform much better in 2022. It expects net losses for airlines to narrow from $51.8 billion this year to just $11.6 billion next year. And in North America, the trade body expects airlines to perform the best and return to profitability as travel demand improves.
Delta is already benefiting from these trends, and buying the stock before full recovery takes place could be a way for investors to secure a good return. Although its shares have risen just 28% in the past 12 months, compared to 35% returns for United Airlines and 57% gains for American Airlines, it could prove to be an underrated buy. A customer satisfaction study done by J.D. Power earlier this year had Delta ranking first in customer satisfaction among North American carriers (the first time it has done so since 1995) during the pandemic. Winning over customers during these high-stress times could pay off for the airline, especially as demand continues to pick up.
10 stocks we like better than AmerisourceBergen
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JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. David Jagielski has no position in any of the stocks mentioned. The Motley Fool recommends Delta Air Lines. 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.
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While interest rate increases won't be great news for many businesses, it's still a positive sign overall as it means the economy is in strong shape. A big reason for the strong performance was a release of credit reserves (which indicates the bank is less worried about the risk of default, due to a stronger economy), which had a $0.52 positive effect on EPS. The company raised its dividend payment in September, hiking payouts from $0.90 every quarter up to $1, for an annual yield of 2.4% -- ahead of both the 1.5% that AmerisourceBergen pays and the S&P 500 average of less than 1.3%.
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And three stocks that you should consider buying on that development include AmerisourceBergen (NYSE: ABC), JPMorgan Chase (NYSE: JPM), and Delta Air Lines (NYSE: DAL). In its most recent quarter, for the period ending June 30, AmerisourceBergen reported $53.4 billion in revenue, a year-over-year increase of 17.7%. JPMorgan Chase reported earnings this month, for the period ending Sept. 30, sales of $30.4 billion beat analyst estimates of $29.8 billion.
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And three stocks that you should consider buying on that development include AmerisourceBergen (NYSE: ABC), JPMorgan Chase (NYSE: JPM), and Delta Air Lines (NYSE: DAL). Delta Air Lines Another company that's bound to do well in a return to normalcy is Delta Air Lines. See the 10 stocks *Stock Advisor returns as of September 17, 2021 JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company.
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Delta Air Lines Another company that's bound to do well in a return to normalcy is Delta Air Lines. It expects net losses for airlines to narrow from $51.8 billion this year to just $11.6 billion next year. That's right -- they think these 10 stocks are even better buys.
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