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4600.0
2021-03-31 00:00:00 UTC
Buckle Up When It Comes to American Airlines Stock
AAL
https://www.nasdaq.com/articles/buckle-up-when-it-comes-to-american-airlines-stock-2021-03-31
nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips American Airlines (NASDAQ:AAL) is off to a flying start this week. But for today’s AAL stock investors is now a smart time to hop on board or make alternate plans for the portfolio? Let’s look at what’s happening off and on the price chart. Then, I’ll offer an aligned, risk-adjusted determination for the weather forecast ahead. AAL) airplane waiting on the tarmac. Represents airline stocks." width="300" height="169"> Source: GagliardiPhotography / Shutterstock.com One day doesn’t typically make a trend. But Tuesday was a good one for AAL. Shares were up 5.28% on the session, comparing favorably to the broader averages, as well as airline peers Delta (NYSE:DAL), United Airlines (NASDAQ:UAL), Southwest Airlines (NYSE:LUV) and others. Driving the action, American Airlines announced plans to reinstate most of its fleet to active status as it prepares for a surge in air travel demand this summer. It sounds good, right? And for investors demanding friendlier price action, AAL’s monthly gain of nearly 14% and year-to-date return of 53% are certain signs of a bullish trend in motion. Even better? That tenacity hasn’t been without cause either. The Jet Fuel in AAL Stock It’s no secret AAL has benefited from more and more Americans traveling as the novel coronavirus loosens its grip after more than a year of pandemic-driven lockdowns and other socially distanced behavior nearly unimaginable a year ago. From Thanksgiving to the Christmas holiday and most recently this month’s Spring Break, people have been making the most of easing restrictions as the country unevenly reopens and nearby herd immunity increasingly a nearby reality. 7 Oil Stocks Being Squeezed by Weak Demand Today and as far as AAL’s business is concerned, the improvement is dramatic. From Covid’s darkest days last spring when airline travel was down upward of 90%, an industry-wide collapse looked possible and warnings of “the world has changed” were heard over the market’s PA system by Warren Buffett, bottom and top-line, people are traveling by air to unshackle from cabin fever fatigue. This month scanning data from the Transportation Security Administration (TSA) is sure proof of that. Air travel still hasn’t reached levels from 2018 and 2019. But its roughly a three-fold increase over 2020 with consistent counts north of 1 million a solid indication of the industry’s rebounding health. So break out the travel gear and book a trip on AAL stock? Not quite. AAL Weekly Price Chart Source: Charts by TradingView The solid gains in AAL stock teased at above come at a steeper cost today. Technically and for the time being, a contrarian-based investment is running on fumes. As the illustrated weekly view reveals, AAL’s stochastics has bearishly crossed over in overbought territory. It’s a warning. And accompanied by a confirmed doji topping pattern formed outside American’s upper Bollinger Band, monitoring shares for a purchase, rather than buying a standalone stock position right now makes sense. Buying into American Airlines Stock What I’d like to see happen in AAL’s emerging uptrend is for shares to challenge a technical zone support from roughly $16.50 to $19.25. Comprised of the 38% and 50% Fibonacci retracement levels and prior downtrend resistance, a corrective countertrend move of this size should hold. And the chances for a bullish pivot low within the trend to form are improved as today’s overbought situation should be sufficiently neutralized. Alternatively, for AAL stock bulls that don’t mind riding out some forecasted turbulence before new relative highs might come into play, I’d recommend the August $28 / $33 bull call spread. For just over $1, this vertical offers nice downside protection and positional leverage to reasonably capitalize on a building uptrend, while allowing for enough time to do so. On the date of publication, Chris Tyler does not hold, directly or indirectly, positions in any securities mentioned in this article. Chris Tyler is a former floor-based, derivatives market maker on the American and Pacific exchanges. The information offered is based on his professional experience but strictly intended for educational purposes only. Any use of this information is 100% the responsibility of the individual. For additional market insights and related musings, follow Chris on Twitter @Options CAT and StockTwits. The post Buckle Up When It Comes to American Airlines Stock 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.
Buying into American Airlines Stock What I’d like to see happen in AAL’s emerging uptrend is for shares to challenge a technical zone support from roughly $16.50 to $19.25. InvestorPlace - Stock Market News, Stock Advice & Trading Tips American Airlines (NASDAQ:AAL) is off to a flying start this week. But for today’s AAL stock investors is now a smart time to hop on board or make alternate plans for the portfolio?
InvestorPlace - Stock Market News, Stock Advice & Trading Tips American Airlines (NASDAQ:AAL) is off to a flying start this week. And for investors demanding friendlier price action, AAL’s monthly gain of nearly 14% and year-to-date return of 53% are certain signs of a bullish trend in motion. AAL Weekly Price Chart
InvestorPlace - Stock Market News, Stock Advice & Trading Tips American Airlines (NASDAQ:AAL) is off to a flying start this week. The Jet Fuel in AAL Stock It’s no secret AAL has benefited from more and more Americans traveling as the novel coronavirus loosens its grip after more than a year of pandemic-driven lockdowns and other socially distanced behavior nearly unimaginable a year ago. Buying into American Airlines Stock What I’d like to see happen in AAL’s emerging uptrend is for shares to challenge a technical zone support from roughly $16.50 to $19.25.
Buying into American Airlines Stock What I’d like to see happen in AAL’s emerging uptrend is for shares to challenge a technical zone support from roughly $16.50 to $19.25. InvestorPlace - Stock Market News, Stock Advice & Trading Tips American Airlines (NASDAQ:AAL) is off to a flying start this week. But for today’s AAL stock investors is now a smart time to hop on board or make alternate plans for the portfolio?
4601.0
2021-03-30 00:00:00 UTC
Major U.S. airlines commit to carbon neutrality by 2050, trade body says
AAL
https://www.nasdaq.com/articles/major-u.s.-airlines-commit-to-carbon-neutrality-by-2050-trade-body-says-2021-03-30
nan
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March 30 (Reuters) - Airlines for America, a group representing major U.S. airlines, said on Tuesday it is committed to working with the aviation industry and the government to achieve net-zero carbon emissions by 2050. The trade group said it intends to work towards a rapid expansion of the production and deployment of commercially viable sustainable aviation fuel (SAF) to make 2 billion gallons of SAF available to U.S. aircraft operators in 2030. Airlines for America, which represents American Airlines AAL.O, Delta Air Lines DAL.N, United Airlines UAL.O and others, had told Reuters previously it has been in contact with the Biden administration's climate change officials to discuss expanding the sustainable aviation fuel market. (Reporting by Radhika Anilkumar in Bengaluru; Editing by Shailesh Kuber) ((Radhika.Anilkumar@thomsonreuters.com; +91 8067490824;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Airlines for America, which represents American Airlines AAL.O, Delta Air Lines DAL.N, United Airlines UAL.O and others, had told Reuters previously it has been in contact with the Biden administration's climate change officials to discuss expanding the sustainable aviation fuel market. March 30 (Reuters) - Airlines for America, a group representing major U.S. airlines, said on Tuesday it is committed to working with the aviation industry and the government to achieve net-zero carbon emissions by 2050. The trade group said it intends to work towards a rapid expansion of the production and deployment of commercially viable sustainable aviation fuel (SAF) to make 2 billion gallons of SAF available to U.S. aircraft operators in 2030.
Airlines for America, which represents American Airlines AAL.O, Delta Air Lines DAL.N, United Airlines UAL.O and others, had told Reuters previously it has been in contact with the Biden administration's climate change officials to discuss expanding the sustainable aviation fuel market. March 30 (Reuters) - Airlines for America, a group representing major U.S. airlines, said on Tuesday it is committed to working with the aviation industry and the government to achieve net-zero carbon emissions by 2050. The trade group said it intends to work towards a rapid expansion of the production and deployment of commercially viable sustainable aviation fuel (SAF) to make 2 billion gallons of SAF available to U.S. aircraft operators in 2030.
Airlines for America, which represents American Airlines AAL.O, Delta Air Lines DAL.N, United Airlines UAL.O and others, had told Reuters previously it has been in contact with the Biden administration's climate change officials to discuss expanding the sustainable aviation fuel market. March 30 (Reuters) - Airlines for America, a group representing major U.S. airlines, said on Tuesday it is committed to working with the aviation industry and the government to achieve net-zero carbon emissions by 2050. (Reporting by Radhika Anilkumar in Bengaluru; Editing by Shailesh Kuber) ((Radhika.Anilkumar@thomsonreuters.com; +91 8067490824;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Airlines for America, which represents American Airlines AAL.O, Delta Air Lines DAL.N, United Airlines UAL.O and others, had told Reuters previously it has been in contact with the Biden administration's climate change officials to discuss expanding the sustainable aviation fuel market. March 30 (Reuters) - Airlines for America, a group representing major U.S. airlines, said on Tuesday it is committed to working with the aviation industry and the government to achieve net-zero carbon emissions by 2050. The trade group said it intends to work towards a rapid expansion of the production and deployment of commercially viable sustainable aviation fuel (SAF) to make 2 billion gallons of SAF available to U.S. aircraft operators in 2030.
4602.0
2021-03-30 00:00:00 UTC
Why American Airlines Stock Is Up Today
AAL
https://www.nasdaq.com/articles/why-american-airlines-stock-is-up-today-2021-03-30
nan
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What happened American Airlines Group (NASDAQ: AAL) said Monday it intends to restore most of its fleet to active status in anticipation of a summer surge in demand. On Tuesday, the stock was surging as a result, up more than 5% in afternoon trading. So what American and other airlines endured a miserable 2020, with travel demand all but wiped out by the pandemic. But as the vaccine rollout continues, investors are growing more optimistic we'll see a flood of leisure travel this summer, and American's commentary served to confirm those expectations. Image source: American Airlines. The airline said in a regulatory filing that as COVID-19 trends have improved, "the company has experienced recent strength in domestic and short-haul international bookings." As of March 26, American said its seven-day moving average of net bookings is about 90% of the level experienced in 2019. Wall Street is taking notice. Jefferies analyst Sheila Kahyaoglu upgraded American to a hold from an underperform and raised her price target to $25 from $15, saying that American is the sole operator on about 37% of its routes. That, Kahyaoglu says, should give the airline "considerable potential" to retain pricing power and outperform its rivals through the recovery. Now what Not everyone is convinced. Citi analyst Stephen Trent said in a note that he is taking a "cautious view" on American's announcement given that government payroll assistance has made it relatively pain-free for airlines to add capacity. With that in mind, he said that commentary about reactivating aircraft "paints an incomplete picture" about airline economics. Trent has a sell rating on American shares. Even if the news is all good, it is worth noting that the recovery is arguably priced into the shares already. By some measures, airlines are worth more now than they were prior to the pandemic. Given the uncertainty about how the pandemic will play out, and the fact that airlines like American are not expecting business and international travel to recover fully for years, there is reason for investors to be cautious right now. 10 stocks we like better than American Airlines Group When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and American Airlines Group wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of February 24, 2021 Citigroup is an advertising partner of The Ascent, a Motley Fool company. Lou Whiteman has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Jefferies Financial Group Inc.. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
What happened American Airlines Group (NASDAQ: AAL) said Monday it intends to restore most of its fleet to active status in anticipation of a summer surge in demand. Citi analyst Stephen Trent said in a note that he is taking a "cautious view" on American's announcement given that government payroll assistance has made it relatively pain-free for airlines to add capacity. Given the uncertainty about how the pandemic will play out, and the fact that airlines like American are not expecting business and international travel to recover fully for years, there is reason for investors to be cautious right now.
What happened American Airlines Group (NASDAQ: AAL) said Monday it intends to restore most of its fleet to active status in anticipation of a summer surge in demand. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. * David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and American Airlines Group wasn't one of them!
What happened American Airlines Group (NASDAQ: AAL) said Monday it intends to restore most of its fleet to active status in anticipation of a summer surge in demand. Citi analyst Stephen Trent said in a note that he is taking a "cautious view" on American's announcement given that government payroll assistance has made it relatively pain-free for airlines to add capacity. 10 stocks we like better than American Airlines Group When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen.
What happened American Airlines Group (NASDAQ: AAL) said Monday it intends to restore most of its fleet to active status in anticipation of a summer surge in demand. So what American and other airlines endured a miserable 2020, with travel demand all but wiped out by the pandemic. Even if the news is all good, it is worth noting that the recovery is arguably priced into the shares already.
4603.0
2021-03-30 00:00:00 UTC
American Airlines Says Domestic And Short-Haul International Bookings Have Picked Up Recently
AAL
https://www.nasdaq.com/articles/american-airlines-says-domestic-and-short-haul-international-bookings-have-picked-up
nan
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American Airlines Group Inc. announced an operational update of its business. Pandemic-related regulations imposed on entry into the US at the beginning of 2021 did impact American Airlines’ (AAL) bookings at the beginning of the first quarter. However, on a significant decline in infection and hospitalization rates along with a rise in vaccine distribution during 1Q, the company recently has witnessed strength in domestic and short-haul international bookings. As of March 26, American Airlines’ statistics reflect a seven-day moving average of net bookings at 90% of the level experienced in 2019, with a domestic load factor of 80%. The company expects strong bookings to continue through the end of the first quarter and into the second quarter. American Airlines anticipates system capacity (total available seat miles) for the first quarter of 2021 to decline about 40%-45% year-over-year, compared to the prior guidance of a decline of 45%. Being cautious in the current uncertain demand environment, American Airlines will continue to monitor demand and adjust fleet and capacity, as deemed necessary, on an ongoing basis. At present, the company plans to reactivate most of its aircraft in the second quarter to meet expected demand. (See American Airlines stock analysis on TipRanks) Following the update, Citigroup analyst Stephen Trent maintained a Sell rating on the stock, based on the “cautious view” on American Airlines’ expected capacity additions and its comments on the seven-day moving average bookings improving to 90% of pre-pandemic levels. The rest of the Street is bearish about the stock with a Moderate Sell consensus rating. That’s based on 2 Buys, 5 Holds, and 6 Sells. The average analyst price target of $18.89 implies 17.6% downside potential to current levels. American Airlines gets a 3 out of 10 on TipRanks’ Smart Score ranking, suggesting that it is likely to underperform market expectations. Related News: KBR Provides Long-Term Financial Targets; Shares Pop 13% Bioventus’ 4Q Results Outperform Analysts’ Expectations RLX Technology’s 4Q Profit Exceeds Analysts’ Expectations, Revenue Rises The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Pandemic-related regulations imposed on entry into the US at the beginning of 2021 did impact American Airlines’ (AAL) bookings at the beginning of the first quarter. However, on a significant decline in infection and hospitalization rates along with a rise in vaccine distribution during 1Q, the company recently has witnessed strength in domestic and short-haul international bookings. As of March 26, American Airlines’ statistics reflect a seven-day moving average of net bookings at 90% of the level experienced in 2019, with a domestic load factor of 80%.
Pandemic-related regulations imposed on entry into the US at the beginning of 2021 did impact American Airlines’ (AAL) bookings at the beginning of the first quarter. As of March 26, American Airlines’ statistics reflect a seven-day moving average of net bookings at 90% of the level experienced in 2019, with a domestic load factor of 80%. Being cautious in the current uncertain demand environment, American Airlines will continue to monitor demand and adjust fleet and capacity, as deemed necessary, on an ongoing basis.
Pandemic-related regulations imposed on entry into the US at the beginning of 2021 did impact American Airlines’ (AAL) bookings at the beginning of the first quarter. As of March 26, American Airlines’ statistics reflect a seven-day moving average of net bookings at 90% of the level experienced in 2019, with a domestic load factor of 80%. (See American Airlines stock analysis on TipRanks) Following the update, Citigroup analyst Stephen Trent maintained a Sell rating on the stock, based on the “cautious view” on American Airlines’ expected capacity additions and its comments on the seven-day moving average bookings improving to 90% of pre-pandemic levels.
Pandemic-related regulations imposed on entry into the US at the beginning of 2021 did impact American Airlines’ (AAL) bookings at the beginning of the first quarter. The company expects strong bookings to continue through the end of the first quarter and into the second quarter. At present, the company plans to reactivate most of its aircraft in the second quarter to meet expected demand.
4604.0
2021-03-29 00:00:00 UTC
American Airlines Group Sees Q1 System Capacity To Be Down About 40% - 45%
AAL
https://www.nasdaq.com/articles/american-airlines-group-sees-q1-system-capacity-to-be-down-about-40-45-2021-03-29
nan
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(RTTNews) - American Airlines Group Inc. (AAL) disclosed in a regulatory filing that it now expects its first-quarter system capacity -- total available seat miles-- to be down about 40% to 45% compared to the first quarter 2019, due to the current operational environment in the COVID-19 pandemic. It compared to the company's previous guidance of down 45% versus the first quarter 2019. The company noted that it will continue to adjust its fleet and capacity plans based on anticipated levels of demand and presently expects to reactivate most of its aircraft in the second quarter to meet anticipated levels of demand. The company stated that it experienced softness in its bookings at the beginning of the first quarter, due to the Centers for Disease Control and Prevention order to require a negative COVID-19 test for entry into the U.S. at the beginning of 2021. However, the company has experienced recent strength in domestic and short-haul international bookings, as infection and hospitalization rates have materially declined and vaccine distribution has increased during the quarter. As of March 26, the company's seven day moving average of its net bookings is about 90% of the level experienced in 2019, with a domestic load factor of approximately 80% during that same period. The company now expects the strength in bookings to continue through the end of the first quarter and into the second quarter. However, investors are cautioned that visibility regarding forward bookings remains limited. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
(RTTNews) - American Airlines Group Inc. (AAL) disclosed in a regulatory filing that it now expects its first-quarter system capacity -- total available seat miles-- to be down about 40% to 45% compared to the first quarter 2019, due to the current operational environment in the COVID-19 pandemic. However, the company has experienced recent strength in domestic and short-haul international bookings, as infection and hospitalization rates have materially declined and vaccine distribution has increased during the quarter. As of March 26, the company's seven day moving average of its net bookings is about 90% of the level experienced in 2019, with a domestic load factor of approximately 80% during that same period.
(RTTNews) - American Airlines Group Inc. (AAL) disclosed in a regulatory filing that it now expects its first-quarter system capacity -- total available seat miles-- to be down about 40% to 45% compared to the first quarter 2019, due to the current operational environment in the COVID-19 pandemic. The company noted that it will continue to adjust its fleet and capacity plans based on anticipated levels of demand and presently expects to reactivate most of its aircraft in the second quarter to meet anticipated levels of demand. However, the company has experienced recent strength in domestic and short-haul international bookings, as infection and hospitalization rates have materially declined and vaccine distribution has increased during the quarter.
(RTTNews) - American Airlines Group Inc. (AAL) disclosed in a regulatory filing that it now expects its first-quarter system capacity -- total available seat miles-- to be down about 40% to 45% compared to the first quarter 2019, due to the current operational environment in the COVID-19 pandemic. The company noted that it will continue to adjust its fleet and capacity plans based on anticipated levels of demand and presently expects to reactivate most of its aircraft in the second quarter to meet anticipated levels of demand. The company stated that it experienced softness in its bookings at the beginning of the first quarter, due to the Centers for Disease Control and Prevention order to require a negative COVID-19 test for entry into the U.S. at the beginning of 2021.
(RTTNews) - American Airlines Group Inc. (AAL) disclosed in a regulatory filing that it now expects its first-quarter system capacity -- total available seat miles-- to be down about 40% to 45% compared to the first quarter 2019, due to the current operational environment in the COVID-19 pandemic. It compared to the company's previous guidance of down 45% versus the first quarter 2019. The company now expects the strength in bookings to continue through the end of the first quarter and into the second quarter.
4605.0
2021-03-29 00:00:00 UTC
American Readies Fleet For Expected Surge in Demand
AAL
https://www.nasdaq.com/articles/american-readies-fleet-for-expected-surge-in-demand-2021-03-29
nan
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American Airlines Group (NASDAQ: AAL) expects to have most of its fleet airborne in the coming months in response to growing post-pandemic demand. American and other airlines were hit hard by the pandemic, which caused travel demand to evaporate. But as the vaccine rollout gains pace, the industry is growing more optimistic a rebound is at hand. The airline in a regulatory filing Monday said, based on anticipated levels of demand, it expects in the months to come to reactivate most of the planes it grounded last year. That would be a stark improvement, as capacity in the first quarter is expected to come in down 45% compared to a year prior. Image source: American Airlines. American said it experienced "softness" in bookings at the beginning of the year, but as hospitalization rates have fallen and vaccine distribution has intensified "the company has experienced recent strength in domestic and short-haul international bookings." As of March 26, American said, its seven-day moving average of net bookings is about 90% of the level experienced in 2019. The optimism is good news for investors, but caution is warranted. For one, the trends could reverse if a new wave of COVID-19 cases emerges. Although the vaccine rollout has gone well, on Monday Centers for Disease Control and Prevention Director Rochelle Walensky said she has a feeling of "impending doom" when she thinks about the potential of an uptick in new cases. Even if that new wave doesn't happen, it remains questionable how much further airline stocks can soar. American and other airlines are going to need years to repair their balance sheets after taking on more debt during the crisis, and more lucrative segments of the market, including business and international travel, could take time to return. But Wall Street is currently valuing the airlines at a premium to where they traded prior to the pandemic. 10 stocks we like better than American Airlines Group When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and American Airlines Group wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of February 24, 2021 Lou Whiteman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
American Airlines Group (NASDAQ: AAL) expects to have most of its fleet airborne in the coming months in response to growing post-pandemic demand. The airline in a regulatory filing Monday said, based on anticipated levels of demand, it expects in the months to come to reactivate most of the planes it grounded last year. Although the vaccine rollout has gone well, on Monday Centers for Disease Control and Prevention Director Rochelle Walensky said she has a feeling of "impending doom" when she thinks about the potential of an uptick in new cases.
American Airlines Group (NASDAQ: AAL) expects to have most of its fleet airborne in the coming months in response to growing post-pandemic demand. * David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and American Airlines Group wasn't one of them! See the 10 stocks *Stock Advisor returns as of February 24, 2021 Lou Whiteman has no position in any of the stocks mentioned.
American Airlines Group (NASDAQ: AAL) expects to have most of its fleet airborne in the coming months in response to growing post-pandemic demand. 10 stocks we like better than American Airlines Group When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. * David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and American Airlines Group wasn't one of them!
American Airlines Group (NASDAQ: AAL) expects to have most of its fleet airborne in the coming months in response to growing post-pandemic demand. The airline in a regulatory filing Monday said, based on anticipated levels of demand, it expects in the months to come to reactivate most of the planes it grounded last year. * David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and American Airlines Group wasn't one of them!
4606.0
2021-03-29 00:00:00 UTC
American Airlines readies more jets to meet rising demand
AAL
https://www.nasdaq.com/articles/american-airlines-readies-more-jets-to-meet-rising-demand-2021-03-29
nan
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March 29 (Reuters) - American Airlines AAL.O said on Monday it expects to fly most of its fleet in the coming months thanks to strong domestic and short-haul international bookings as COVID-19 infection rates and hospitalizations decline and more people receive vaccines. American said that as of March 26, average bookings for the next seven days had reached 90% of levels experienced before the pandemic upended air travel in 2019, with a domestic load factor of about 80%. "The Company presently expects this strength in bookings to continue through the end of the first quarter and into the second quarter," it said in a regulatory filing. Shares in U.S. airlines, which parked hundreds of jets as demand plummeted last year, have climbed this year amid hopes for a recovery. The U.S. Transportation Security Administration (TSA) screened 1.57 million passengers on Sunday, the highest number since March 2020. Following the increase in travel demand so far this year, American said it expects its system capacity to be down between 40% and 45% in the first quarter to March 31 versus the same period in 2019, compared to its previous guidance for a 45% decline. (Reporting by Tracy Rucinski; Editing by Bernadette Baum) ((tracy.rucinski@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.
March 29 (Reuters) - American Airlines AAL.O said on Monday it expects to fly most of its fleet in the coming months thanks to strong domestic and short-haul international bookings as COVID-19 infection rates and hospitalizations decline and more people receive vaccines. American said that as of March 26, average bookings for the next seven days had reached 90% of levels experienced before the pandemic upended air travel in 2019, with a domestic load factor of about 80%. Following the increase in travel demand so far this year, American said it expects its system capacity to be down between 40% and 45% in the first quarter to March 31 versus the same period in 2019, compared to its previous guidance for a 45% decline.
March 29 (Reuters) - American Airlines AAL.O said on Monday it expects to fly most of its fleet in the coming months thanks to strong domestic and short-haul international bookings as COVID-19 infection rates and hospitalizations decline and more people receive vaccines. American said that as of March 26, average bookings for the next seven days had reached 90% of levels experienced before the pandemic upended air travel in 2019, with a domestic load factor of about 80%. Following the increase in travel demand so far this year, American said it expects its system capacity to be down between 40% and 45% in the first quarter to March 31 versus the same period in 2019, compared to its previous guidance for a 45% decline.
March 29 (Reuters) - American Airlines AAL.O said on Monday it expects to fly most of its fleet in the coming months thanks to strong domestic and short-haul international bookings as COVID-19 infection rates and hospitalizations decline and more people receive vaccines. Following the increase in travel demand so far this year, American said it expects its system capacity to be down between 40% and 45% in the first quarter to March 31 versus the same period in 2019, compared to its previous guidance for a 45% decline. (Reporting by Tracy Rucinski; Editing by Bernadette Baum) ((tracy.rucinski@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.
March 29 (Reuters) - American Airlines AAL.O said on Monday it expects to fly most of its fleet in the coming months thanks to strong domestic and short-haul international bookings as COVID-19 infection rates and hospitalizations decline and more people receive vaccines. American said that as of March 26, average bookings for the next seven days had reached 90% of levels experienced before the pandemic upended air travel in 2019, with a domestic load factor of about 80%. Following the increase in travel demand so far this year, American said it expects its system capacity to be down between 40% and 45% in the first quarter to March 31 versus the same period in 2019, compared to its previous guidance for a 45% decline.
4607.0
2021-03-28 00:00:00 UTC
3 Best Contrarian Stocks to Buy Now
AAL
https://www.nasdaq.com/articles/3-best-contrarian-stocks-to-buy-now-2021-03-28
nan
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It is not uncommon to see investors missing out on their best profit opportunities due to fright over a company's financial statements. Don't get me wrong -- doing due diligence on a stock you want to buy is essential. However, a company's stock performance is tied to its future potential, even though evidence from the past is the overwhelming source of information for many investors. It can be misleading to look at past financials when a company is at a turning point in its growth story. That would be kind of like only using your rearview mirrors while driving. Today let's look at why a troubled airline, a company with a promising treatment for Alzheimer's disease, and an electric vehicle battery charging company are among the top growth stocks with exciting catalysts ahead -- even if their financial statements show a few red flags. Image source: Getty Images 1. American Airlines American Airlines Group (NASDAQ: AAL) stock has become a bargain after the coronavirus pandemic decimated its core business in 2020. Last year, the company's revenue declined by an astonishing 62.1% from 2019. Simultaneously, its operating loss amounted to over $10 billion compared to an income of $3.07 billion in 2019. But what makes it a buy now? The coronavirus pandemic could dissipate quicker than expected. The Biden administration is on track distribute coronavirus vaccines to all American adults by the end of July. Depending on how other countries fare, global travel demand could return to normal by 2022. Trading at just 0.6 times revenue, American Airlines is incredibly cheap considering the company could see its sales and earnings recover (and then some) within the next 24 months. American Airlines has the one of the largest and most efficient global airline networks. Last year, when it couldn't transport people, the company made money by utilizing its passenger fleet for cargo-only deliveries. It managed to run 5,200 such flights and delivered 167 million pounds of supplies across the world. The airline also realized $1.3 billion in cost savings that will carry over after the pandemic ends. American Airlines is also upgrading its fleet to include the new Boeing 737 Max and Airbus A321 models in the coming year. Right now, the company has $14.3 billion in total liquidity to weather its operations until the threats posed by the virus subside. For investors looking for stocks with immediate or near-term rebound potential, American Airlines is a fantastic choice. 2. Cassava Sciences With a $1.9 billion market cap, no product revenue, and an estimated operating loss of $25 million for 2021, many investors are probably wondering how Cassava Sciences (NASDAQ: SAVA) could possibly be considered a top growth stock. Well, the secret sauce lies in its pipeline. You see, it's been nearly two decades since the U.S. Food and Drug Administration approved an Alzheimer's drug. To date, there is no cure for the disease, let alone a treatment that can slow its progression. Cassava is looking to change that. Its experimental therapeutic, simufilam, will be ready for phase 3 clinical trials by the end of the year. In phase 2 clinical trials, 98% of patients who took the drug saw improvements in biomarkers associated with Alzheimer's disease, with impressive gains in episodic and spatial memory compared to a placebo. Another open-label study verified these results, in which patients taking simufilam saw a 10% enhancement in their cognitive abilities and 29% enhancement in associative symptoms such as anxiety, delusions, and agitation. While that might not seem like a lot, one path forward is for the company to combine simufilam with current standard of care drugs for Alzheimer's, such as donepezil, for synergistic effects. Right now, Cassava is pretty well capitalized, with more than $280 million in cash on its balance sheet to carry out further investigations. That's a lot considering its cash use will only amount to $20 million to $25 million this year. Given the multi-billion dollar market opportunity, if successful, this is definitely a solid biotech you should add to your watchlist. 3. Blink Charging Similar to Cassava, Blink Charging (NASDAQ: BLNK) has a sizable market cap ($1.3 billion), negligible product revenue, and is running at an operating loss. Nonetheless, I think its stock is an exciting investment. As it turns out, Blink Charging is laying the foundation of an electric vehicle charging network across the nation. So far, it has deployed over 9,600 residential charging stations and 5,700 commercial stations in 40 states. There are more than 190,000 members registered for its services. By the end of the decade, Bloomberg projects the number of electric vehicles in the U.S. will increase to 13 million, up from 1 million today. That's a massive total addressable market, and is just what Blink Charging needs for commercial success. Right now, its charging stations are compatible with all-electric vehicle models across North America, including those manufactured by Tesla (granted, an adapter is required). Investing in infrastructure is a long-term investment that pays off handsomely, making Blink Charging an intriguing stock to buy and hold. 10 stocks we like better than American Airlines Group When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now… and American Airlines Group wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of February 24, 2021 Zhiyuan Sun has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Tesla. 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.
American Airlines American Airlines Group (NASDAQ: AAL) stock has become a bargain after the coronavirus pandemic decimated its core business in 2020. In phase 2 clinical trials, 98% of patients who took the drug saw improvements in biomarkers associated with Alzheimer's disease, with impressive gains in episodic and spatial memory compared to a placebo. While that might not seem like a lot, one path forward is for the company to combine simufilam with current standard of care drugs for Alzheimer's, such as donepezil, for synergistic effects.
American Airlines American Airlines Group (NASDAQ: AAL) stock has become a bargain after the coronavirus pandemic decimated its core business in 2020. Today let's look at why a troubled airline, a company with a promising treatment for Alzheimer's disease, and an electric vehicle battery charging company are among the top growth stocks with exciting catalysts ahead -- even if their financial statements show a few red flags. Cassava Sciences With a $1.9 billion market cap, no product revenue, and an estimated operating loss of $25 million for 2021, many investors are probably wondering how Cassava Sciences (NASDAQ: SAVA) could possibly be considered a top growth stock.
American Airlines American Airlines Group (NASDAQ: AAL) stock has become a bargain after the coronavirus pandemic decimated its core business in 2020. Today let's look at why a troubled airline, a company with a promising treatment for Alzheimer's disease, and an electric vehicle battery charging company are among the top growth stocks with exciting catalysts ahead -- even if their financial statements show a few red flags. Cassava Sciences With a $1.9 billion market cap, no product revenue, and an estimated operating loss of $25 million for 2021, many investors are probably wondering how Cassava Sciences (NASDAQ: SAVA) could possibly be considered a top growth stock.
American Airlines American Airlines Group (NASDAQ: AAL) stock has become a bargain after the coronavirus pandemic decimated its core business in 2020. American Airlines has the one of the largest and most efficient global airline networks. That's a massive total addressable market, and is just what Blink Charging needs for commercial success.
4608.0
2021-03-26 00:00:00 UTC
7 Bellwether Stocks to Buy That Will Soar As Normalcy Nears
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https://www.nasdaq.com/articles/7-bellwether-stocks-to-buy-that-will-soar-as-normalcy-nears-2021-03-26
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips The stock market seems to be pricing in a lot of “normality” into valuations across the board. Stocks aren’t cheap, with investor sentiment broadly bullish. That makes scouting out bellwether stocks, true signals our world is returning to pre-pandemic ways, a difficult task. Furthermore, what’s “normal” is a matter of subjective interpretation. However, when I think of what normal looks like, it looks a lot more like 2019. The pandemic has completely altered the way we live and work. In some ways good. Others, not so much. 7 Risky Stocks Ready to Roll on Reopening Here are 7 bellwether stocks to buy: American Air Lines (NASDAQ:AAL) Carnival (NYSE:CCL) Marriott International (NASDAQ:MAR) Nordstrom (NYSE:JWN) Darden Restaurants (NYSE:DRI) Planet Fitness (NYSE:PLNT) Airbnb (NASDAQ:ABNB) These are stocks that have shown resilience of late, and are mainly stocks that sold off dramatically when we entered the pandemic. Again, investors need to remember that the stock market right now is pricing in an incredible amount of growth coming out of this pandemic. However, for those bullish on an accelerated rebound coming out of this pandemic, these are stocks to take a look at right now. Bellwether Stocks to Buy: American Air Lines (AAL) AAL) airplane waiting on the tarmac. Represents airline stocks." width="300" height="169"> Source: GagliardiPhotography / Shutterstock.com Thinking of taking a nice trip to Hawaii? I mean, without having to get tested and quarantine. Well, it appears investors seem to think we do. Indeed, pent-up demand for discretionary travel is expected to unleash a wave of travel demand the likes of which we haven’t seen in a very, very long time. If the current trajectory is any indication, it looks like travelers are already packing their bags and going, wherever they can. The U.S. has now had 11 consecutive days in a row of 1 million-plus travelers at U.S. airports, a staggering contrast to one year ago. Yes these numbers are still way down from 2019, but travel volumes right now are approximately triple that of this time last year. Indeed, American Airlines stock today certainly seems to represent some hope for investors. The company’s stock price has climbed nearly 270% from its pandemic lows. However, American Airlines stock continues to be significantly depressed from its all-time highs, as profitability was already on the decline prior to the pandemic. All that said, this is a stock to watch for investors focused on the future. If sentiment continues to grow more bullish for airlines, American Airlines could be one of the biggest beneficiaries. Carnival (CCL) CCL) ship on the water" width="300" height="169"> Source: Ruth Peterkin / Shutterstock.com Another one of the best stocks to buy for those expecting sunny days ahead is Carnival. Like the other stocks on this list, Carnival took a harsh beating during the pandemic for good reason. Cruises all but ground to a halt, as a number of cruises were identified as major super-spreader events amid the onset of the pandemic. However, there’s good news. This is also a stock that has more than tripled from its pandemic-driven selloff last year. While Carnival continues to bleed cash, and is unlikely to get anything in the way of a bailout from the government, the company has been finding ways to make its way through the pandemic. Carnival has issued debt on a number of occasions. Taking on massive debt when a company’s cash flows are non-existent is never a good thing. However, the recent bond offerings were at a much more reasonable 7.6% yield, compared to the 12% bonds it was forced to issue at the onset of the pandemic. 7 Risky Stocks Ready to Roll on Reopening Indeed, many analysts believe the bond market is better at pricing risk than the equity market. From that perspective, things are looking much better for Carnival. There may be room for CCL shareholders to be optimistic still. Marriott International (MAR) MAR) hotel" width="300" height="169"> Source: MariaX / Shutterstock.com The dramatic plunge in travel demand has affected more than airlines. Stocks in the hotel sector also fell off a cliff last March. Marriott International was certainly no exception. Just a year later and it’s as if the pandemic never happened. Stocks like Marriott are now trading right around pre-pandemic levels as investors pile into any turnaround play they can find. Indeed, sentiment appears to be broadly bullish for travel demand coming out of this pandemic. If you’re more bullish than the market, Marriott stock will be one to watch closely. The hotel sector will continue be heavily scrutinized in coming quarters. However, it appears Marriott has done a relatively good job of managing its core business during the pandemic. Indeed, one thing I like about Marriott right now is the fact this company’s debt load and share count have remained roughly the same through the pandemic. That’s good news for fundamental investors seeking stability in times of uncertainty. This is a stock that saw its revenue decline substantially (more than halved), though Marriott’s losses weren’t as bad as other travel-related sectors. Accordingly, the rebound in MAR stock may be more warranted than in a lot of other highly-cyclical plays right now. Nordstrom (JWN) JWN) storefront in Toronto, Canada." width="300" height="169"> Source: Jonathan Weiss / Shutterstock.com Higher-end retailer Nordstrom is a bellwether stock more than any of its retail peers. This is because a rather wide swath of retail stocks have been swept up by “meme stock” fever of late. But for whatever reason, Nordstrom appears to be a stock that was immune. Its products might be trendy, but JWN stock just can’t say the same. Rather, Nordstrom has been a retail stock with a stock chart that more closely approximates the other reopening plays right now. Its valuation is more reasonable than its retail meme stock peers, but with the same underlying growth thesis. As employment metrics (are expected to) continue to improving as we come out of this pandemic, high-end retail should do quite well. In fact, investors are betting on it. Nordstrom has actually performed decently well through the pandemic, due to its strong and growing e-commerce presence. In fact, I think this catalyst should bode well for those attempting to anticipate what the future may hold for the retail sector. 7 Risky Stocks Ready to Roll on Reopening Thus, the company’s more hybrid business model should approximate the market’s overall sentiment more closely than its retail brethren. Nordstrom is about as high-quality a retail pick as one can choose right now, so I think it’s an interesting one for fundamentals-oriented value investors to consider. Darden Restaurants (DRI) Source: Shutterstock Tired of eating at home? Dying to go out and eat with your friends, without having to wear a mask when you’re not sitting at the table? You aren’t alone. Darden Restaurants is a company that puts the “full” in full-service dining. Darden is the parent company of a range of household restaurant banners in the U.S. These include Olive Garden, LongHorn Steakhouse, Cheddar’s Scratch Kitchen, Yard House, The Capital Grille, Seasons 52, Bahama Breeze and Eddie V’s. Pandemic-related restrictions have really put a damper on restaurant stocks over the past year. Yes Darden, like many of its economically-sensitive peers, has rebounded to pre-pandemic levels. However, Darden’s continued growth prospects really rely on the economic recovery turning out as planned. It appears the Biden Administration’s stimulus packages are assuaging concerns about muted discretionary spending in coming quarters. Indeed, investors appear ready to bet on restaurants returning to normal soon. Likewise, if we don’t see a return to normal, investors can bet their bottom dollar this will be reflected in stocks like DRI. Darden’s trading near its all-time high right now, so it’s pricing in a lot of growth. This appears to be a stock only for the biggest bulls out there today. Planet Fitness (PLNT) Source: Ken Wolter / Shutterstock.com The only pure-play gym chain on the stock market, Planet Fitness is certainly a bellwether stock for those considering what a return to normal looks like. Many of us may have put on more than a few pounds during the pandemic. In fact, a recent study showed more than 40% of Americans gained weight during the pandemic. Going back to the gym sounds like a great idea right now for many. Those who couldn’t afford a Peloton (NASDAQ:PTON) bike or a private trainer (so, a lot of us) are looking forward to getting back into the gym. As more restrictions are lifted state by state, expectations are rising that Planet Fitness and its gym peers may do well in this sort of environment. Accordingly, it appears right now investors are banking on a serious demand surge. 7 Risky Stocks Ready to Roll on Reopening It may be unsurprising to see Planet Fitness has more than doubled from its pandemic lows. It’s actually breached its all-time high earlier this year. Indeed, this is one of those stocks that has some pretty serious bullish sentiment built in today. For those wondering if tomorrow brings brighter days ahead, PTON stock sure screams “yes.” Airbnb (ABNB) Source: BigTunaOnline / Shutterstock.com Airbnb has grown to become a ubiquitous stocks in the travel sector. Anytime a company name gets used as a verb, you know it’s doing something right. Such is the case with Airbnb. This company’s innovative technologically-oriented solution for hospitality seekers has unsurprisingly taken a hit during the pandemic. However, unlike its peers on this list, the company went public less than a year ago. Thus, we’re unable to see what its stock price might have done pre-pandemic. Year-to-date, Airbnb has performed well. This stock has provided investors with a gain of more than 30%, amid an increasingly bullish post-pandemic outlook. Indeed, we’re all itching to get out and go somewhere. Even if that somewhere is a domestic destination (Airbnb is hoping so). As pandemic-related restrictions are lifted, ABNB stock should continue to reflect these increasingly bullish expectations in its stock price. Again, if things turn sour, this sentiment will likely be reflected in ABNB stock. It’s a stock with a tremendous amount of growth built into its valuation right now. Accordingly, Airbnb investors are perhaps more highly leveraged to the economic outlook than their peers. On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The post 7 Bellwether Stocks to Buy That Will Soar As Normalcy Nears 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.
7 Risky Stocks Ready to Roll on Reopening Here are 7 bellwether stocks to buy: American Air Lines (NASDAQ:AAL) Carnival (NYSE:CCL) Marriott International (NASDAQ:MAR) Nordstrom (NYSE:JWN) Darden Restaurants (NYSE:DRI) Planet Fitness (NYSE:PLNT) Airbnb (NASDAQ:ABNB) These are stocks that have shown resilience of late, and are mainly stocks that sold off dramatically when we entered the pandemic. Bellwether Stocks to Buy: American Air Lines (AAL) AAL) airplane waiting on the tarmac. 7 Risky Stocks Ready to Roll on Reopening Thus, the company’s more hybrid business model should approximate the market’s overall sentiment more closely than its retail brethren.
7 Risky Stocks Ready to Roll on Reopening Here are 7 bellwether stocks to buy: American Air Lines (NASDAQ:AAL) Carnival (NYSE:CCL) Marriott International (NASDAQ:MAR) Nordstrom (NYSE:JWN) Darden Restaurants (NYSE:DRI) Planet Fitness (NYSE:PLNT) Airbnb (NASDAQ:ABNB) These are stocks that have shown resilience of late, and are mainly stocks that sold off dramatically when we entered the pandemic. Bellwether Stocks to Buy: American Air Lines (AAL) AAL) airplane waiting on the tarmac. As pandemic-related restrictions are lifted, ABNB stock should continue to reflect these increasingly bullish expectations in its stock price.
7 Risky Stocks Ready to Roll on Reopening Here are 7 bellwether stocks to buy: American Air Lines (NASDAQ:AAL) Carnival (NYSE:CCL) Marriott International (NASDAQ:MAR) Nordstrom (NYSE:JWN) Darden Restaurants (NYSE:DRI) Planet Fitness (NYSE:PLNT) Airbnb (NASDAQ:ABNB) These are stocks that have shown resilience of late, and are mainly stocks that sold off dramatically when we entered the pandemic. Bellwether Stocks to Buy: American Air Lines (AAL) AAL) airplane waiting on the tarmac. InvestorPlace - Stock Market News, Stock Advice & Trading Tips The stock market seems to be pricing in a lot of “normality” into valuations across the board.
7 Risky Stocks Ready to Roll on Reopening Here are 7 bellwether stocks to buy: American Air Lines (NASDAQ:AAL) Carnival (NYSE:CCL) Marriott International (NASDAQ:MAR) Nordstrom (NYSE:JWN) Darden Restaurants (NYSE:DRI) Planet Fitness (NYSE:PLNT) Airbnb (NASDAQ:ABNB) These are stocks that have shown resilience of late, and are mainly stocks that sold off dramatically when we entered the pandemic. Bellwether Stocks to Buy: American Air Lines (AAL) AAL) airplane waiting on the tarmac. Well, it appears investors seem to think we do.
4609.0
2021-03-25 00:00:00 UTC
Why Airline Stocks Are Higher Today
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https://www.nasdaq.com/articles/why-airline-stocks-are-higher-today-2021-03-25
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What happened President Joe Biden is getting more aggressive about vaccinations, airlines are building back their schedules, and aviation stocks are on the move higher as a result. Shares of Spirit Airlines (NYSE: SAVE) led the way on Thursday, up as much as 7%, with shares of United Airlines Holdings (NASDAQ: UAL) and American Airlines Group (NASDAQ: AAL) each up 5%. So what Airline investors who watched the stocks struggle through a miserable 2020 due to the pandemic are growing more excited about 2021, seemingly by the day. There appears to be pent-up demand for vacation travel. If the population is vaccinated and allowed to fly this summer, there are likely to be full flights. Image source: Getty Images. President Biden on Thursday provided a fresh dose of optimism on vaccines, saying he now hopes to have 200 million vaccinations take place in his first 100 days in office. United, meanwhile, is adding flights in anticipation of strong demand. The airline on Thursday announced a May schedule that adds 26 new nonstop routes between Midwest cities and vacation destinations. It is also resuming service on more than 20 domestic routes, and loading up flights to Latin America. "In the past few weeks, we have seen the strongest flight bookings since the start of the pandemic," United vice president Ankit Gupta said in a statement. "As we rebuild our schedule to meet that demand, adding in seasonal point-to-point flying is just one of the ways we are finding opportunities to add new and exciting service." If United is seeing stronger demand, it is highly likely other airlines are seeing it, too. That had investors buying into the stocks on Thursday. Now what The airlines are back, but it remains to be seen how high they can climb. Spirit has industry-low costs and, unlike United, doesn't need to alter its route network to cater to tourists. If demand emerges as expected, Spirit could be among the first airlines to fully recover, and investors have bid the shares up as a result. For United and American, the path forward will likely be much slower. Those airlines do best when international and business travel is thriving, and those segments of the market figure to take much longer than leisure to get back to normal. The danger is removed from these stocks, and the odds of a failure are low, but investors are likely still in for some turbulence up ahead. Given that airline valuations are actually now above pre-pandemic figures, it doesn't feel like the best time to buy in. But for long-term shareholders, the industry is clearly headed in the right direction. 10 stocks we like better than Spirit Airlines When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Spirit Airlines wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of February 24, 2021 Lou Whiteman owns shares of Spirit Airlines. The Motley Fool owns shares of and recommends Spirit 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.
Shares of Spirit Airlines (NYSE: SAVE) led the way on Thursday, up as much as 7%, with shares of United Airlines Holdings (NASDAQ: UAL) and American Airlines Group (NASDAQ: AAL) each up 5%. What happened President Joe Biden is getting more aggressive about vaccinations, airlines are building back their schedules, and aviation stocks are on the move higher as a result. "In the past few weeks, we have seen the strongest flight bookings since the start of the pandemic," United vice president Ankit Gupta said in a statement.
Shares of Spirit Airlines (NYSE: SAVE) led the way on Thursday, up as much as 7%, with shares of United Airlines Holdings (NASDAQ: UAL) and American Airlines Group (NASDAQ: AAL) each up 5%. See the 10 stocks *Stock Advisor returns as of February 24, 2021 Lou Whiteman owns shares of Spirit Airlines. The Motley Fool owns shares of and recommends Spirit Airlines.
Shares of Spirit Airlines (NYSE: SAVE) led the way on Thursday, up as much as 7%, with shares of United Airlines Holdings (NASDAQ: UAL) and American Airlines Group (NASDAQ: AAL) each up 5%. * David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Spirit Airlines wasn't one of them! See the 10 stocks *Stock Advisor returns as of February 24, 2021 Lou Whiteman owns shares of Spirit Airlines.
Shares of Spirit Airlines (NYSE: SAVE) led the way on Thursday, up as much as 7%, with shares of United Airlines Holdings (NASDAQ: UAL) and American Airlines Group (NASDAQ: AAL) each up 5%. That had investors buying into the stocks on Thursday. * David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Spirit Airlines wasn't one of them!
4610.0
2021-03-25 00:00:00 UTC
Best Airline Stocks to Buy as the Industry Takes Off Again
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https://www.nasdaq.com/articles/best-airline-stocks-to-buy-as-the-industry-takes-off-again-2021-03-25
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The outlook for airline stocks continues to zip relentlessly higher ... even if they still face a few near-term bumps on the runway. Leisure travelers are taking to the skies again as vaccinations roll out nationwide and pandemic cases decline, which are welcome glimmers of hope for a wide range of travel stocks, including carriers. As a for-instance, the Transportation Security Administration reported that the number of travelers going through its checkpoints between March 18-24 rose by 160% year-over-year to 9.4 million. But to illustrate just how far we have to go, traffic remains 44% below 2019 levels. SEE MORE ‪11 Recovery Stocks That Could Get a Stimulus Spark‬ The environment is sufficiently buoyant to justify upgrades on a slew of U.S. airline stocks by a number of analysts. That includes Deutsche Bank analyst Michael Linenberg, who says hospitalizations, COVID cases and vaccination rates are "all trending in the right direction." He also is encouraged by the industry's "nonstop pursuit of numerous initiatives to mitigate the spread of COVID and increase the confidence of the flying public." The airline industry supports an international contact tracing program, as well as a pilot program of the digital Travel Pass from the International Air Transportation Association that would match itineraries to local COVID testing requirements. Read on as we look at nine airline stocks with a brighter outlook in 2021. One thing to take into consideration, however, is that airlines have already lifted off in 2021, with the Dow Jones U.S. Airlines Index up 26% year-to-date. This froth makes the group susceptible to choppy trading on short-term concerns. And not all carriers are created equal; the best airline stocks are flying on far sturdier wings than their peers. We'll look to identify the strongest candidates, which might be even more attractive on quick dips. SEE MORE The 21 Best Stocks to Buy for 2021 Data is as of March 24. Analyst ratings provided by S&P Global Market Intelligence. Getty Images American Airlines Market cap: $13.6 billion Analyst ratings: 2 Strong Buy, 0 Buy, 6 Hold, 4 Sell, 7 Strong Sell Year-to-date performance: 38% Despite a nearly 40% run-up in American Airlines (AAL, $21.81), shares still trade at a lower valuation than several of its smaller competitors. It remains one of the worst airline stocks of the past three years, off 44% in that time versus a 17% loss for the broader airline index. And it's not popular among analysts, with a consensus Sell rating, according to S&P Global Market Intelligence. Sign up for Kiplinger's FREE Investing Weekly e-letter for stock, ETF and mutual fund recommendations, and other investing advice. Hampering investors' optimism over the past few years has been a hefty debt load that's larger than those of its peers. Fitch Ratings, which downgraded America's senior secured debt ratings from B+ to B in early March, notes that AAL ended 2020 with $41 billion in debt including lease obligations. "(That) is likely to increase to $45 billion or more by YE 2021, leading to leverage be sustained at levels that constrain the (Long-Term Issuer Default Rating) to 'B-' at least through 2022. But there was some good news in Fitch's report, too. The credit rating agency removed the company from Rating Watch Negative following several "positive" events: American's liquidity improved due to continued federal aid, and the vaccination rollout is expected to lead to a "meaningful rebound" in air travel in 2021. That means American is less likely to continue to burn cash for a prolonged period. At the end of 2020, the carrier had $7 billion in cash and short-term investments plus another $7 billion in federal aid from the CARES Act. To conserve funds, American has frozen share buybacks and dividend payments for now. Deutsche Bank's Linenberg is in American's small bull camp. In the past, he noted, airlines that did not join economic recoveries were ones with broken business models, insufficient liquidity, and whose operations cannot service their financial obligations. That's not true for American and other airlines the bank covers, he says. Stifel analyst Joseph DeNardi, who rates AAL at Hold, raised his fiscal 2021 and 2022 revenue estimates for American but cut his earnings per share (EPS) estimates for both years. He does, however, mention a bright spot in the carrier's business: its marketing operations. Carriers and banks partner on co-branded credit cards. Travelers use these credit cards to earn miles. When they redeem the miles for travel, the banks buy miles at a good profit to the carriers. For 2020, American had $1.83 billion in marketing fee revenue from its loyalty program. This compares to Marriott's (MAR) $1.55 billion in net fee revenue in 2020, DeNardi says. And yet, American's marketing business is valued at 16 times 2021-23 EBITDA (earnings before interest, taxes, depreciation and amortization) – a discount to Marriott's valuation. SEE MORE 21 Best Retirement Stocks for an Income-Rich 2021 Getty Images United Airlines Market cap: $16.9 billion Analyst ratings: 7 Strong Buy, 2 Buy, 6 Hold, 3 Sell, 2 Strong Sell Year-to-date performance: 24% United Airlines (UAL, $53.83) is another so-called legacy U.S. airline with thousands of domestic and international routes. And just like American (and Delta, which we'll discuss in a moment), UAL stands to benefit from a recovery in air travel, especially in business and international flights. But what sets United apart is a knack for keeping expenses down. Morningstar calls United "the lowest unit cost legacy carrier since 2016." Since the pandemic started, United has been cutting spending and reducing capacity to cope with decreased revenues, says Argus Research analyst John Staszak (Hold). As such, United is "well-positioned for an eventual recovery in airline traffic." Management's actions are expected to result in a "lower daily cash burn rate than that of other legacy airlines," he adds. In the fourth quarter of 2020, United cut its cash burn to $19 million from $24 million a day. For the first quarter, the carrier expects daily cash burn of $10 million to $20 million. United plans to cut another $2 billion in annual costs by 2023. Meanwhile, United's long-term debt stood at around $5 billion at the end of last year. Here's a growthier goal: United aims to double its loyalty mileage program's EBITDA over the next few years, according to Stifel's Joseph DeNardi, who also rates UAL at Hold. In 2019, EBITDA was $1.8 billion. "Undoubtedly, that is a far, far more compelling and valuable source of earnings power improvement than (the cost cuts)." To be sure, United's shares are up 26% year-to-date. But CFRA's Colin Scarola (Buy), who's more bullish than his aforementioned peers, sees more upside to come. "We are now seeing the leading edge of a large pent-up demand wave," he says. He recently raised his 12-month price target to $66 (23% upside), which he pointed out still is a third below the stock's pre-COVID high. The Street collectively doesn't see UAL as one of the best airline stocks right now, however. Nine analysts give shares some sort of Buy rating, but another six say to Hold and five call it a Sell. SEE MORE Hedge Funds' 25 Top Blue-Chip Stocks to Buy Now Getty Images Delta Air Lines Market cap: $28.8 billion Analyst ratings: 7 Strong Buy, 3 Buy, 11 Hold, 0 Sell, 1 Strong Sell Year-to-date performance: 13% Among the three legacy airline stocks, Delta Air Lines (DAL, $45.61) is seen to have the strongest brand because it is able to attract high-yielding business travelers through product segmentation and credit card partnerships, particularly with American Express (AXP), Morningstar says. Amex pays top dollar for Delta miles that are given to business travelers, who often use mileage to upgrade flights if their employers are unwilling to pay. And even though a recovery in business travel is challenging for now, Delta is well-positioned once it rebounds. Delta indicated in its lastearnings callthat most corporate customers expect demand to rebound to 2019 levels by 2023, Raymond James analyst Savanthi Syth says. Moreover, the increased mobility of employees able to work from anywhere could help business travel return, but perhaps in a different form. Delta is continuing to focus on the corporate and premium leisure traveler, betting that its brand, hubs and sales efforts will give it a competitive edge in the recovery. Delta's game plan during the pandemic also helps: it focused on serving interior hubs (Atlanta, Detroit, Minneapolis/St. Paul, Salt Lake City) due to their cost advantages and traffic flow within airports that lowers its dependence on state reopenings. The airline whittled down the number of its focus cities as well, from mid- to high single digits to just two: Austin, Texas, and Raleigh, N.C. These two fast-growing cities have a high concentration of business traffic, Raymond James analysts say. (Focus cities are those where no global or legacy carriers have a hub.) Delta had $14 billion in cash and short-term investments at the end of 2020, versus long-term debt and capital leases of $29 billion. And Argus Research (Buy) expects the carrier to return to profitability in the second half of 2021 and into 2022. Broadly speaking, analysts are warm on the stock, with a consensus Buy rating. SEE MORE 12 Best Infrastructure Stocks for Biden's Next Big Plan Getty Images Southwest Airlines Market cap: $33.7 billion Analyst ratings: 12 Strong Buy, 4 Buy, 3 Hold, 1 Sell, 0 Strong Sell Year-to-date performance: 24% If there's one airline strongly poised to benefit from a recovery led by leisure travelers, it's Southwest Airlines (LUV, $57.70). The largest domestic U.S. airline has made a name for itself by focusing on offering low-cost fares in the leisure market, all wrapped up in a fun package. As business travel recovers, Southwest's low fares could take a share of this market as companies seek to reduce employee travel costs, Morningstar analysts say. Leisure passenger bookings are improving, and so are the carrier's expectations for March and April operating revenues. The average core cash burn is now seen coming in at $14 million a day for the first quarter, down from the $15 million initially forecast. BofA Securities adds that Southwest has an industry-leading balance sheet and strong competitive position. They're hardly alone. LUV is one of the best airline stocks of the bunch according to Wall Street's pros, who give it a clean consensus Buy recommendation. Just one analyst is betting against the company at the moment. "It feels like it's … the beginning of the end," Southwest CEO Gary Kelly said in a March 15 interview with The Washington Post. "There are very clear signs that our business is picking up." He said he hoped that by June, business will have recovered enough that the airline has a chance of "breaking even." As for business travel, Kelly said it takes five years on average to recover from recessions, although it could be much longer as employees have gotten used to working virtually. (At Southwest, business travel is down 90%.) But Kelly said offering low-cost fares helps the airline do better in such an environment. LUV is pursuing other revenue streams to offset weakness in business travel. For the first time in 2020, Southwest began participating in other global distribution systems to make it easier for companies to book travel on the airline. Southwest historically has sold its tickets through its down distribution channel. "So, I would expect our share of (business travel) will go up significantly," Kelly adds. SEE MORE 65 Best Dividend Stocks You Can Count On in 2021 Getty Images JetBlue Airways Market cap: $5.9 billion Analyst ratings: 4 Strong Buy, 2 Buy, 7 Hold, 2 Sell, 1 Strong Sell Year-to-date performance: 29% JetBlue Airways (JBLU, $18.79) is another low-cost airline focused on domestic markets with additional perks such as assigned seating and in-flight entertainment. The pandemic that kept travelers at home have hammered JetBlue; nevertheless, a leisure-led travel rebound is helping to lift the airline's wings as well. "We all want things to get back to normal. I certainly feel optimistic that that time is coming soon," CEO Robin Hayes said at the JPMorgan Industrials Conference on March 15. "We're seeing good revenue momentum. (And while it's right to be a bit cautious), there is a lot of pent-up demand." Hayes said JetBlue has "definitely seen a lot of momentum coming into March." For example, heading into the month, revenue was about $6 million a day. The average revenue take in March is now around $10 million to $12 million, he says. "That shows you how much acceleration there has been." (To break even, JetBlue needs to bring in $13 million to $15 million a day.) The current uptick in demand is giving Hayes confidence that the airline industry "can start to be cash positive" in the short- to medium-term. Wall Street isn't quite as exuberant. Argus Research's Colin Scarola, for instance, is among a number of analysts calling JBLU shares a Hold on valuation concerns. "We expect JBLU to breakeven again in Q3 2020, with the help of successful vaccines boosting travel demand," he says. "However, JBLU's debt has more than doubled since December, which will cause earnings to need 4-plus years to fully recover pre-pandemic level, in our view." SEE MORE Warren Buffett Stocks Ranked: The Berkshire Hathaway Portfolio Getty Images Alaska Air Market cap: $8.0 billion Analyst ratings: 9 Strong Buy, 2 Buy, 3 Hold, 0 Sell, 0 Strong Sell Year-to-date performance: 26% Wall Street is looking at Alaska Air (ALK, $65.42) with a little bit more favor than other carriers. It has an average recommendation of Buy among 14 analysts, and it's one of the best airline stocks by its composite rating, according to S&P Global Market Intelligence. BofA Securities, which has a Buy recommendation on the airline, cited its "solid" liquidity position relative to peers and a discounted share price. "Our recommendations continue to reflect our preference for airlines with solid balance sheets, good relative margins, leisure exposure and the ability to come out of the pandemic in a position of strength," says BofA analyst Andrew Didora. He says momentum continues to drive airline stocks higher in the near term, but he acknowledges there are risks to fundamentals in a recovery "when most airlines have enterprise values higher than pre-pandemic (times)." Moreover, jet fuel prices are nearly back to pre-COVID levels, but demand is still more than 60% below – this will affect industry earnings. CFRA analyst Colin Scarola (Buy) lauds the Alaska Air's conservative balance sheet and its historically high cash generation per plane that "will make it among the first U.S. airlines to recover profitably this year." Moreover, he said, the airline has "modest" equipment purchase commitments this year and in 2022, meaning it is "likely to generate meaningful free cash flow" next year even if earnings remain way below pre-pandemic highs. Finally, ALK is expected to "materially" increase free cash flow beyond next year as air travel demand fully recovers from the pandemic and grows with global economic integration, the analyst wrote. SEE MORE 20 Best Stocks to Buy for the Joe Biden Presidency Getty Images Spirit Airlines Market cap: $3.3 billion Analyst ratings: 4 Strong Buy, 1 Buy, 6 Hold, 1 Sell, 1 Strong Sell Year-to-date performance: 42% With bigger competitors cutting fares during the pandemic, Spirit Airlines (SAVE, $34.73) is getting some stiff competition for its budget fares. Demand in February turned the corner later than expected for the no-frills airline, but business caught up in March, allowing Spirit to maintain its business outlook for the first quarter. Importantly, the upturn in March carries "favorable implications" for the second quarter, says Raymond James. Spirit expects capacity to return to 2019 levels by this summer, which implies a 21% to 24% growth in seats. However, one disadvantage is that Spirit has less room to cut costs than its competitors given its already lean operations. One area of savings, although for the longer term, is the increased use of fuel-efficient next-generation aircraft. Spirit is what's called an "ultra low-cost carrier" (ULCC) with industry-leading low-cost structure that often lets it offer substantially lower airfares than its competitors. It makes around half of its revenue from ancillary sales such as baggage check-in, seat selection and other traditionally included features. CFRA (Hold) is among several analysts that are cautious on this airline stock. Analyst Colin Scarola cited "severe" fourth-quarter 2020 cash burn of $137 million in part as employee compensation costs rose 3% in the quarter from a year ago, compared to a decline of 30% for Southwest and 17% for American Airlines. Scarola also said Spirit has equipment purchase commitments averaging $830 million for 2021 to 2025 vis-à-vis peak operating cash flow of $551 million before the pandemic. "We are concerned that Spirit will continue to burn cash for many years," Scarola says. SEE MORE 12 Hot Upcoming IPOs to Watch For in 2021 Getty Images Allegiant Travel Market cap: $3.9 billion Analyst ratings: 7 Strong Buy, 2 Buy, 7 Hold, 0 Sell, 0 Strong Sell Year-to-date performance: 24% Allegiant Travel (ALGT, $234.70), which operates Allegiant Air, is the little airline that could. And as one of the most profitable carriers in the industry, Allegiant is considered one of the best airline stocks right now, given a high composite analyst rating that includes no Sell calls. "Not only was the December (2020) quarter loss per share materially narrower-than-expected, but the company managed to post positive adjusted EBITDA of $35 million for 2020, an achievement that very few publicly traded airlines around the world will be able to claim," Deutsche Bank analyst Michael Linenberg wrote in February. He upgraded the stock to Buy from Hold and raised his 2021 EPS estimates. Allegiant operates a unique business model in that it views airline seats as commodities that open opportunities to develop related businesses with higher margins that are less capital-intensive: hotel rooms, car rentals and the like. This view has garnered admirers on Wall Street. CEO Maury Gallagher's vision is "how every other airline executive should view their business," Stifel's Joseph DeNardi (Buy) says. Like the other airlines, Allegiant sees travel demand improving. But as its competitors retrench from serving cities, Allegiant has expansion on its mind. According to a March 5 note from Raymond James, Allegiant sees around 1,000 potential new markets it could serve, up from 600 it identified before COVID. About 80% of these new markets don't have much competition, and half of them already connect to an Allegiant market. SEE MORE The 21 Best ETFs to Buy for a Prosperous 2021 Getty Images Mesa Air Market cap: $445.3 million Analyst ratings: 1 Strong Buy, 1 Buy, 3 Hold, 0 Sell, 0 Strong Sell Year-to-date performance: 88% Mesa Air (MESA, $12.57) is a regional carrier that operates American Eagle, United Express and DHL Express flights. Mesa is in a good spot after snagging a new United contract prior to COVID and extending its agreement with American for five years, according to a Feb. 17 BofA Securities research note. As such, Mesa is "well positioned to help its partners capitalize on a return to domestic travel, particularly as the network airlines should focus more on hub traffic." Moreover, U.S. government aid was a big support to the carrier, allowing it to refinance high-cost debt. It received more than $140 million in grants and $195 million in loans. "The government support meaningfully helped Mesa's balance sheet at a time when other airlines were issuing capital to get through the crisis," BofA said. As such, "balance sheet risk has been meaningfully reduced at a time when capex (capital expenditures) needs are small," the report added. BofA upgraded the stock to Buy from Underperform. Looking to the future, Mesa and United recently announced they were investing in Archer Aviation, which develops urban mobility aircraft, or "flying taxis." United has ordered 200 of these aircraft, according to a March 4 note from Raymond James. These vertical take-off and landing aircraft can reduce carbon emissions, for example, by up to 50% per trip between Hollywood and Los Angeles International Airport compared to cars. The target cost is $3.30 per passenger mile based on four passengers, making it competitive with ride-sharing, the report said. "We do not see a near-term benefit to earnings," Raymond James analysts say. "However, potential for electric aircraft to lower pilot training costs and to open up small short-haul markets long abandoned by regional airlines could provide longer term earnings growth." SEE MORE 2021's Best Mutual Funds in 401(k) Retirement Plans The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Getty Images American Airlines Market cap: $13.6 billion Analyst ratings: 2 Strong Buy, 0 Buy, 6 Hold, 4 Sell, 7 Strong Sell Year-to-date performance: 38% Despite a nearly 40% run-up in American Airlines (AAL, $21.81), shares still trade at a lower valuation than several of its smaller competitors. Fitch Ratings, which downgraded America's senior secured debt ratings from B+ to B in early March, notes that AAL ended 2020 with $41 billion in debt including lease obligations. Stifel analyst Joseph DeNardi, who rates AAL at Hold, raised his fiscal 2021 and 2022 revenue estimates for American but cut his earnings per share (EPS) estimates for both years.
Getty Images American Airlines Market cap: $13.6 billion Analyst ratings: 2 Strong Buy, 0 Buy, 6 Hold, 4 Sell, 7 Strong Sell Year-to-date performance: 38% Despite a nearly 40% run-up in American Airlines (AAL, $21.81), shares still trade at a lower valuation than several of its smaller competitors. Fitch Ratings, which downgraded America's senior secured debt ratings from B+ to B in early March, notes that AAL ended 2020 with $41 billion in debt including lease obligations. Stifel analyst Joseph DeNardi, who rates AAL at Hold, raised his fiscal 2021 and 2022 revenue estimates for American but cut his earnings per share (EPS) estimates for both years.
Getty Images American Airlines Market cap: $13.6 billion Analyst ratings: 2 Strong Buy, 0 Buy, 6 Hold, 4 Sell, 7 Strong Sell Year-to-date performance: 38% Despite a nearly 40% run-up in American Airlines (AAL, $21.81), shares still trade at a lower valuation than several of its smaller competitors. Fitch Ratings, which downgraded America's senior secured debt ratings from B+ to B in early March, notes that AAL ended 2020 with $41 billion in debt including lease obligations. Stifel analyst Joseph DeNardi, who rates AAL at Hold, raised his fiscal 2021 and 2022 revenue estimates for American but cut his earnings per share (EPS) estimates for both years.
Getty Images American Airlines Market cap: $13.6 billion Analyst ratings: 2 Strong Buy, 0 Buy, 6 Hold, 4 Sell, 7 Strong Sell Year-to-date performance: 38% Despite a nearly 40% run-up in American Airlines (AAL, $21.81), shares still trade at a lower valuation than several of its smaller competitors. Fitch Ratings, which downgraded America's senior secured debt ratings from B+ to B in early March, notes that AAL ended 2020 with $41 billion in debt including lease obligations. Stifel analyst Joseph DeNardi, who rates AAL at Hold, raised his fiscal 2021 and 2022 revenue estimates for American but cut his earnings per share (EPS) estimates for both years.
4611.0
2021-03-25 00:00:00 UTC
Dividend over digging: Miners pay shareholders but need new projects
AAL
https://www.nasdaq.com/articles/dividend-over-digging%3A-miners-pay-shareholders-but-need-new-projects-2021-03-25
nan
nan
By Zandi Shabalala LONDON, March 25 (Reuters) - Major miners need to increase spending to secure fresh copper supply, analysts say, amid worries that availability of the red metal, crucial for the shift to a low carbon world, will slide just as demand surges. Copper -- which hit 9-1/2 year highs last month at $9,617 a tonne -- is an efficient conductor and is set to benefit from the rising use of electric vehicles (EVs) and wind and solar power generation. Miners including BHP BHPB.L, Glencore GLEN.L, Rio Tinto RIO.L and Anglo American AAL.L have benefited from soaring metals prices, which have underpinned earnings, boosted dividends and debt reduction. Amid a dearth of new mines coming on stream, analysts are predicting deep structural supply deficits by 2025 for copper, currently mostly used in power and construction industries. This would mean higher for longer pricing but the lack of metal could also hobble the "green revolution". "Clearly for a few years not spending on projects was warranted, because you didn't have a lot of demand growth but what we are facing now is demand rapidly outpacing what miners can produce," said Bank of America analyst Michael Widmer. By 2025, miners need to spend $80 billion annually on extracting cyclical metals to meet demand and contain shortages compared to expectations of around $45 billion this year among the world's top 10 miners, BofA analysts said last month. Commodity analyst CRU Group projects miners need to commit over $100 billion on new projects to avoid a supply gap of 5 million tonnes by 2030. Looking further out, Wood Mackenzie sees a shortfall of around 16 million tonnes by 2040 if substantial investments aren't made. Capital spending on projects and mines peaked in 2012 and has not recovered, BofA said. Anglo American, in its February results, kept capital expenditure for the next three years fairly stable as it flagged another possible rise in shareholder returns this year. Glencore, Rio Tinto and BHP are expected to do the same if commodity prices keep up. The dividend yield of London-listed miners .FTNMX1770 has climbed to 4.67%, outpacing the wider FTSE 100 index .FTSE which sits at 3.3%, according to Refinitiv data, enabled by stronger balance sheets. The peak of the last commodity cycle a decade ago - still fresh in the shareholders' minds - was marked by cost overruns and expensive deals that ended in billions in writedowns. Jefferies analyst Chris LaFemina said the supply growth that many copper miners pledge is more likely to be replacing what they already produce rather than new growth. Certainly, some miners are bucking the trend. Freeport-McMoRan Inc's FCX.N is eyeing expansions at several of its U.S. copper mines to capitalize on surging demand. Its ramp up of the Grasberg mine in Indonesia, Ivanhoe Mines' IVN.TO Kamoa project in Democratic Republic of Congo and Anglo's Quellaveco in Peru are among a handful of large projects expected to deliver more copper within the next two years. But some shareholders remain uneasy with large expansions. "We would be wary of mining companies expanding capex too aggressively, as it would potentially harm the positive supply/demand dynamics were production to grow too quickly," said Richard Marwood, senior fund manager at Royal London Asset Management. "If the electrification demand comes through, with supply somewhat constrained in the near term, copper prices could remain well supported." Mining capexhttps://tmsnrt.rs/3sPUcea (Reporting by Zandi Shabalala, editing by Amran Abocar and Alexandra Hudson) ((zandi.shabalala@tr.com)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Miners including BHP BHPB.L, Glencore GLEN.L, Rio Tinto RIO.L and Anglo American AAL.L have benefited from soaring metals prices, which have underpinned earnings, boosted dividends and debt reduction. By Zandi Shabalala LONDON, March 25 (Reuters) - Major miners need to increase spending to secure fresh copper supply, analysts say, amid worries that availability of the red metal, crucial for the shift to a low carbon world, will slide just as demand surges. Copper -- which hit 9-1/2 year highs last month at $9,617 a tonne -- is an efficient conductor and is set to benefit from the rising use of electric vehicles (EVs) and wind and solar power generation.
Miners including BHP BHPB.L, Glencore GLEN.L, Rio Tinto RIO.L and Anglo American AAL.L have benefited from soaring metals prices, which have underpinned earnings, boosted dividends and debt reduction. By Zandi Shabalala LONDON, March 25 (Reuters) - Major miners need to increase spending to secure fresh copper supply, analysts say, amid worries that availability of the red metal, crucial for the shift to a low carbon world, will slide just as demand surges. By 2025, miners need to spend $80 billion annually on extracting cyclical metals to meet demand and contain shortages compared to expectations of around $45 billion this year among the world's top 10 miners, BofA analysts said last month.
Miners including BHP BHPB.L, Glencore GLEN.L, Rio Tinto RIO.L and Anglo American AAL.L have benefited from soaring metals prices, which have underpinned earnings, boosted dividends and debt reduction. By Zandi Shabalala LONDON, March 25 (Reuters) - Major miners need to increase spending to secure fresh copper supply, analysts say, amid worries that availability of the red metal, crucial for the shift to a low carbon world, will slide just as demand surges. "Clearly for a few years not spending on projects was warranted, because you didn't have a lot of demand growth but what we are facing now is demand rapidly outpacing what miners can produce," said Bank of America analyst Michael Widmer.
Miners including BHP BHPB.L, Glencore GLEN.L, Rio Tinto RIO.L and Anglo American AAL.L have benefited from soaring metals prices, which have underpinned earnings, boosted dividends and debt reduction. "Clearly for a few years not spending on projects was warranted, because you didn't have a lot of demand growth but what we are facing now is demand rapidly outpacing what miners can produce," said Bank of America analyst Michael Widmer. Commodity analyst CRU Group projects miners need to commit over $100 billion on new projects to avoid a supply gap of 5 million tonnes by 2030.
4612.0
2021-03-23 00:00:00 UTC
US STOCKS-S&P 500, Dow set to drop ahead of Powell, Yellen testimonies
AAL
https://www.nasdaq.com/articles/us-stocks-sp-500-dow-set-to-drop-ahead-of-powell-yellen-testimonies-2021-03-23
nan
nan
By Medha Singh and Devik Jain March 23 (Reuters) - The S&P 500 and the Dow were set to open lower on Tuesday as energy andtravel stocksslipped, while investors awaited remarks from Fed Chair Jerome Powell and Treasury Secretary Janet Yellen for clues on the pace of economic rebound. Chevron Corp CVX.N, Occidental Petroleum Corp OXY.N and Exxon Mobil Corp XOM.N shed between 1.7% and 3.8% premarket as oil prices slumped 3% on fears that new pandemic curbs and slow vaccine rollouts in Europe will slow a recovery in demand. O/R Travel-related stocks including United Airlines Holdings UAL.O, American Airlines AAL.O, Royal Caribbean Cruises Ltd RCL.N and Carnival Corp CCL.N slipped between 1.3% and 2.2% . Wall Street's main indexes rallied on Monday as investors rotated out of undervalued economy-linked banks and energy stocks and moved into tech-focused shares in a slight reversal of this year's trend. "It really is a sense of confusion as the market searches for the next leadership or the continued leadership from the value area," said Julian Emanuel, chief equity and derivatives strategist at BTIG. Powell is expected to reiterate his confidence in the economy's growth while cautioning the recovery is far from complete. Yellen is likely to paint an optimistic picture of the economy before the U.S. lawmakers later in the day. Their congressional hearings begin at 12 p.m. ET (1600 GMT). "We kind of know where the Fed is at in terms of yields, inflation and accommodation. We will want to hear a lot more about what Yellen says on additional stimulus," said Neil Wilson, chief market analyst for Markets.com. At 8:23 a.m. ET, Dow E-minis 1YMcv1 were down 121 points, or 0.37% and S&P 500 E-minis EScv1 were down 12 points, or 0.31%. Nasdaq 100 E-minis NQcv1 were up 13.5 points, or 0.1%. Shares of videogame retailer GameStop Corp GME.N, which is transitioning itself into an ecommerce firm, rose 0.7% ahead of its fourth-quarter results due after markets close. The stock has been at the center of a retail trading frenzy recently. U.S.-listed shares of AstraZeneca Plc AZN.O fell 2.3% after a U.S. health agency raised fresh doubt on the results of the drugmaker's large-scale COVID-19 vaccine trials. U.S.-listed shares of Chinese internet search provider Baidu Inc BIDU.O slid 3% following a flat Hong Kong debut as investors were wary of a fundraising flurry in the city and questioned the company's growth plans. (Reporting by Medha Singh and Devik Jain 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.
O/R Travel-related stocks including United Airlines Holdings UAL.O, American Airlines AAL.O, Royal Caribbean Cruises Ltd RCL.N and Carnival Corp CCL.N slipped between 1.3% and 2.2% . By Medha Singh and Devik Jain March 23 (Reuters) - The S&P 500 and the Dow were set to open lower on Tuesday as energy andtravel stocksslipped, while investors awaited remarks from Fed Chair Jerome Powell and Treasury Secretary Janet Yellen for clues on the pace of economic rebound. Wall Street's main indexes rallied on Monday as investors rotated out of undervalued economy-linked banks and energy stocks and moved into tech-focused shares in a slight reversal of this year's trend.
O/R Travel-related stocks including United Airlines Holdings UAL.O, American Airlines AAL.O, Royal Caribbean Cruises Ltd RCL.N and Carnival Corp CCL.N slipped between 1.3% and 2.2% . By Medha Singh and Devik Jain March 23 (Reuters) - The S&P 500 and the Dow were set to open lower on Tuesday as energy andtravel stocksslipped, while investors awaited remarks from Fed Chair Jerome Powell and Treasury Secretary Janet Yellen for clues on the pace of economic rebound. Chevron Corp CVX.N, Occidental Petroleum Corp OXY.N and Exxon Mobil Corp XOM.N shed between 1.7% and 3.8% premarket as oil prices slumped 3% on fears that new pandemic curbs and slow vaccine rollouts in Europe will slow a recovery in demand.
O/R Travel-related stocks including United Airlines Holdings UAL.O, American Airlines AAL.O, Royal Caribbean Cruises Ltd RCL.N and Carnival Corp CCL.N slipped between 1.3% and 2.2% . By Medha Singh and Devik Jain March 23 (Reuters) - The S&P 500 and the Dow were set to open lower on Tuesday as energy andtravel stocksslipped, while investors awaited remarks from Fed Chair Jerome Powell and Treasury Secretary Janet Yellen for clues on the pace of economic rebound. Chevron Corp CVX.N, Occidental Petroleum Corp OXY.N and Exxon Mobil Corp XOM.N shed between 1.7% and 3.8% premarket as oil prices slumped 3% on fears that new pandemic curbs and slow vaccine rollouts in Europe will slow a recovery in demand.
O/R Travel-related stocks including United Airlines Holdings UAL.O, American Airlines AAL.O, Royal Caribbean Cruises Ltd RCL.N and Carnival Corp CCL.N slipped between 1.3% and 2.2% . We will want to hear a lot more about what Yellen says on additional stimulus," said Neil Wilson, chief market analyst for Markets.com. Nasdaq 100 E-minis NQcv1 were up 13.5 points, or 0.1%.
4613.0
2021-03-23 00:00:00 UTC
US STOCKS-Futures drop ahead of Powell, Yellen testimonies
AAL
https://www.nasdaq.com/articles/us-stocks-futures-drop-ahead-of-powell-yellen-testimonies-2021-03-23
nan
nan
By Medha Singh March 23 (Reuters) - U.S. stock index futures slid on Tuesday as energy stocks dropped while investors awaited remarks from Fed Chair Jerome Powell and Treasury Secretary Janet Yellen for clues on the pace of economic rebound. Chevron Corp CVX.N, Occidental Petroleum Corp OXY.N and Exxon Mobil Corp XOM.N shed between 1.5% and 3.5% premarket as oil prices slumped 3% on fears that new pandemic curbs and slow vaccine rollouts in Europe will slow a recovery in demand. O/R Travel-related stocks including United Airlines Holdings UAL.O, American Airlines AAL.O, Royal Caribbean Cruises Ltd RCL.N and Carnival Corp CCL.N slipped between 1.6% and 3.9%. Wall Street's main indexes rallied on Monday as tech-focused stocks caught a bid after coming under pressure since last month as their valuations looked stretched amid a spike in bond yields. Apple Inc AAPL.O, Facebook Inc FB.O and Microsoft Corp MSFT.O eased between 0.2% and 0.7% from the previous session's jump. Powell is expected to reiterate his confidence in the economy's growth while cautioning the recovery is far from complete. Yellen is likely to paint an optimistic picture of the economy before the U.S. lawmakers later in the day. Their congressional hearings begin at 12 p.m. ET (1600 GMT). "We kind of know where the Fed is at in terms of yields, inflation and accommodation. We will want to hear a lot more about what Yellen says on additional stimulus," said Neil Wilson, chief market analyst for Markets.com. At 6:35 a.m. ET, Dow E-minis 1YMcv1 were down 171 points, or 0.52%, S&P 500 E-minis EScv1 were down 19.75 points, or 0.5% and Nasdaq 100 E-minis NQcv1 were down 43 points, or 0.33%. Shares of videogame retailer GameStop Corp GME.N, which is transitioning itself into an ecommerce firm, dropped 0.6% ahead of its fourth-quarter results due after markets close. The stock has been at the center of a recent retail trading frenzy. U.S.-listed shares of AstraZeneca Plc AZN.O fell 2.5% after a U.S. health agency raised fresh doubt on the results of the drugmaker's large-scale COVID-19 vaccine trials. (Reporting by Medha Singh and Devik Jain 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.
O/R Travel-related stocks including United Airlines Holdings UAL.O, American Airlines AAL.O, Royal Caribbean Cruises Ltd RCL.N and Carnival Corp CCL.N slipped between 1.6% and 3.9%. Wall Street's main indexes rallied on Monday as tech-focused stocks caught a bid after coming under pressure since last month as their valuations looked stretched amid a spike in bond yields. Shares of videogame retailer GameStop Corp GME.N, which is transitioning itself into an ecommerce firm, dropped 0.6% ahead of its fourth-quarter results due after markets close.
O/R Travel-related stocks including United Airlines Holdings UAL.O, American Airlines AAL.O, Royal Caribbean Cruises Ltd RCL.N and Carnival Corp CCL.N slipped between 1.6% and 3.9%. By Medha Singh March 23 (Reuters) - U.S. stock index futures slid on Tuesday as energy stocks dropped while investors awaited remarks from Fed Chair Jerome Powell and Treasury Secretary Janet Yellen for clues on the pace of economic rebound. Chevron Corp CVX.N, Occidental Petroleum Corp OXY.N and Exxon Mobil Corp XOM.N shed between 1.5% and 3.5% premarket as oil prices slumped 3% on fears that new pandemic curbs and slow vaccine rollouts in Europe will slow a recovery in demand.
O/R Travel-related stocks including United Airlines Holdings UAL.O, American Airlines AAL.O, Royal Caribbean Cruises Ltd RCL.N and Carnival Corp CCL.N slipped between 1.6% and 3.9%. By Medha Singh March 23 (Reuters) - U.S. stock index futures slid on Tuesday as energy stocks dropped while investors awaited remarks from Fed Chair Jerome Powell and Treasury Secretary Janet Yellen for clues on the pace of economic rebound. Chevron Corp CVX.N, Occidental Petroleum Corp OXY.N and Exxon Mobil Corp XOM.N shed between 1.5% and 3.5% premarket as oil prices slumped 3% on fears that new pandemic curbs and slow vaccine rollouts in Europe will slow a recovery in demand.
O/R Travel-related stocks including United Airlines Holdings UAL.O, American Airlines AAL.O, Royal Caribbean Cruises Ltd RCL.N and Carnival Corp CCL.N slipped between 1.6% and 3.9%. By Medha Singh March 23 (Reuters) - U.S. stock index futures slid on Tuesday as energy stocks dropped while investors awaited remarks from Fed Chair Jerome Powell and Treasury Secretary Janet Yellen for clues on the pace of economic rebound. Chevron Corp CVX.N, Occidental Petroleum Corp OXY.N and Exxon Mobil Corp XOM.N shed between 1.5% and 3.5% premarket as oil prices slumped 3% on fears that new pandemic curbs and slow vaccine rollouts in Europe will slow a recovery in demand.
4614.0
2021-03-22 00:00:00 UTC
3 Stocks to Avoid This Week
AAL
https://www.nasdaq.com/articles/3-stocks-to-avoid-this-week-2021-03-22
nan
nan
I took a look at three stocks to avoid last week, predicting that Interface (NASDAQ: TILE), America Airlines (NASDAQ: AAL), and Gap (NYSE: GPS) would have a bad week. Shares of Interface moved 7% lower. The company did announce its quarterly dividend during the week, but that's a non-event for the modular carpeting specialist. American Airlines rose nearly 7%. Gap stock inched less than 1% higher. climbing 13% for the week. Sources told Bloomberg that the specialty retailer was considering unloading its China businesses. Three analysts also jacked up their price targets on the stock. The three stocks averaged an essentially flat return for the week. The S&P 500 slipped 0.8% for the week. I fell short this time. This week, I see GameStop (NYSE: GME), and America Airlines, and Danimer Scientific (NYSE: DNMR) as vulnerable investments in the near term. Here's why I think these are three stocks to avoid this week. Image source: Getty Images. 1. GameStop The video game retailer lost nearly a quarter of its value last week. GameStop has bounced back from some of its recent setbacks, but this week it's also going to step up with fresh financials. It's easy for bulls and bears to spin speculative buzz when there's no real news to back up their rosy or gloomy scenarios, but now we'll be getting hard numbers for the first time since the meme stock took off in late January. The numbers won't be pretty. GameStop did preannounce in early January that holiday sales were down 3% for the nine-week seasonal shopping season. GameStop's top line declined despite e-commerce sales more than quadrupling. Comps were positive, but largely because its store count has declined 11% over the past year. E-commerce sales are baked into comps, and that figure was divided into 11% fewer stores this time. This is peak earnings season for GameStop, but analyst estimates for the report have been moving lower in recent months. If you think Wall Street's too pessimistic, keep in mind that it overestimated the chain's bottom line in two of the three previous quarters. With PS5 system sales being the only reason sales didn't suffer a double-digit decline -- and consoles being GameStop's lowest-margin category -- there isn't going to be a lot to like in the report. GameStop will try to spin things with promises of shaking things up, but a splash of financial reality may be cruel for the stock on Wednesday and beyond. 2. American Airlines If I thought American Airlines was overvalued a week ago, when it was hitting new 52-week highs, I can assure you I'm even more convinced that it's a stock to avoid a 7% increase over the past five trading days. Air carriers are moving higher as we make headway on the COVID-19 crisis, but the portrait isn't as rosy overseas, with global cases moving higher again. It's going to take years before airlines have a chance to return back to normal, and American Airlines is one of the industry's weaker players. The shocking stat is that as a result of taking on new debt and issuing more stock we find American Airlines trading at an enterprise value above $50 billion. At the beginning of last year the shares were trading a bit higher than they are right now. The 52-week highs it's hitting now have the advantage of lapping the start of the pandemic shutdown with travel stocks starting to swoon since late February of last year. There were no COVID-19 fears, and we were in an expanding economy. American Airlines had an enterprise value of $41.6 billion. Under what scenario is American Airlines a better company now than it was in the months before the pandemic became a globe-rattling reality? I also can't be the only one watching aviation fuel prices heading higher again. 3. Danimer Scientific We live in a world of waste, and Danimer Scientific's proposal hits all of the right eco-friendly tones. It provides a better mouse trap for the plastic bottles, straws, and bags that linger seemingly forever in landfills and oceans. Danimer's oil-based polyhydroxyalkanoates (PHAs for short) offer a plant-based plastic that breaks down easier than traditional plastics. Major brands have turned to Danimer's Nodax, but will the environmental claims hold up? The Wall Street Journal ran a critical article over the weekend, leaning on several experts on biodegradable plastics. They believe that the positive benefits of Nodax are exaggerated, if not misleading. It won't take long for Danimer Scientific to argue its side of the story. It reports fourth-quarter results next Monday, its first report as a public company. Danimer has seen its revenue grow nearly 50% higher through the first nine months of 2020, and next week's report should show more of the same. The challenge now becomes to refute the critics, as customers won't be paying a premium for Nodax if its biodegradable claims start to biodegrade. If you're looking for safe stocks, you aren't likely to find them in GameStop, American Airlines, and Danimer Scientific this week. 10 stocks we like better than GameStop When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and GameStop wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of February 24, 2021 Rick Munarriz has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Danimer Scientific, Inc. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
I took a look at three stocks to avoid last week, predicting that Interface (NASDAQ: TILE), America Airlines (NASDAQ: AAL), and Gap (NYSE: GPS) would have a bad week. It's easy for bulls and bears to spin speculative buzz when there's no real news to back up their rosy or gloomy scenarios, but now we'll be getting hard numbers for the first time since the meme stock took off in late January. The shocking stat is that as a result of taking on new debt and issuing more stock we find American Airlines trading at an enterprise value above $50 billion.
I took a look at three stocks to avoid last week, predicting that Interface (NASDAQ: TILE), America Airlines (NASDAQ: AAL), and Gap (NYSE: GPS) would have a bad week. This week, I see GameStop (NYSE: GME), and America Airlines, and Danimer Scientific (NYSE: DNMR) as vulnerable investments in the near term. If you're looking for safe stocks, you aren't likely to find them in GameStop, American Airlines, and Danimer Scientific this week.
I took a look at three stocks to avoid last week, predicting that Interface (NASDAQ: TILE), America Airlines (NASDAQ: AAL), and Gap (NYSE: GPS) would have a bad week. American Airlines If I thought American Airlines was overvalued a week ago, when it was hitting new 52-week highs, I can assure you I'm even more convinced that it's a stock to avoid a 7% increase over the past five trading days. If you're looking for safe stocks, you aren't likely to find them in GameStop, American Airlines, and Danimer Scientific this week.
I took a look at three stocks to avoid last week, predicting that Interface (NASDAQ: TILE), America Airlines (NASDAQ: AAL), and Gap (NYSE: GPS) would have a bad week. This is peak earnings season for GameStop, but analyst estimates for the report have been moving lower in recent months. If you're looking for safe stocks, you aren't likely to find them in GameStop, American Airlines, and Danimer Scientific this week.
4615.0
2021-03-22 00:00:00 UTC
Energy, mining stocks drag UK shares lower; AstraZeneca rises
AAL
https://www.nasdaq.com/articles/energy-mining-stocks-drag-uk-shares-lower-astrazeneca-rises-2021-03-22
nan
nan
For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window FTSE 100 down 0.7%, FTSE 250 off 0.4% March 22 (Reuters) - London's FTSE 100 inched lower on Monday, dragged by energy and mining stocks as oil and metals prices slipped over fears of slowing demand, while AstraZeneca rose after its COVID-19 vaccine was found effective in a U.S. trial. The commodity-heavy FTSE 100 index .FTSE slipped 0.7%, with oil heavyweights BP BP.L and Royal Dutch Shell RDSa.L being the biggest drags on the index. O/R Mining stocks including Rio Tinto RIO.L, Anglo American AAL.L, and BHP BHPB.L were also among the biggest laggards, falling between 0.4% and 1.3%. MET/L Britons should wait before booking summer holidays abroad, social care minister Helen Whately warned, pointing out that there were rising COVID-19 infection rates in Europe. The domestically focused mid-cap FTSE 250 index .FTMC fell 0.4%, dragged down by industrials stocks. Home improvement retailer Kingfisher KGF.L rose 3.5%, after posting a 44% jump in full-year profit driven by the popularity of do-it-yourself projects during the pandemic. Drugmaker AstraZeneca AZN.L gained 0.9%, after its COVID-19 vaccine was found 79% effective in a large U.S. trial at preventing symptomatic illness, and was 100% effective against severe or critical disease and hospitalisation. (Reporting by Shivani Kumaresan in Bengaluru; Editing by Subhranshu Sahu) ((Shivani.Kumaresan@thomsonreuters.com; +1 646 223 8780;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
O/R Mining stocks including Rio Tinto RIO.L, Anglo American AAL.L, and BHP BHPB.L were also among the biggest laggards, falling between 0.4% and 1.3%. MET/L Britons should wait before booking summer holidays abroad, social care minister Helen Whately warned, pointing out that there were rising COVID-19 infection rates in Europe. Home improvement retailer Kingfisher KGF.L rose 3.5%, after posting a 44% jump in full-year profit driven by the popularity of do-it-yourself projects during the pandemic.
O/R Mining stocks including Rio Tinto RIO.L, Anglo American AAL.L, and BHP BHPB.L were also among the biggest laggards, falling between 0.4% 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 FTSE 100 down 0.7%, FTSE 250 off 0.4% March 22 (Reuters) - London's FTSE 100 inched lower on Monday, dragged by energy and mining stocks as oil and metals prices slipped over fears of slowing demand, while AstraZeneca rose after its COVID-19 vaccine was found effective in a U.S. trial. The commodity-heavy FTSE 100 index .FTSE slipped 0.7%, with oil heavyweights BP BP.L and Royal Dutch Shell RDSa.L being the biggest drags on the index.
O/R Mining stocks including Rio Tinto RIO.L, Anglo American AAL.L, and BHP BHPB.L were also among the biggest laggards, falling between 0.4% 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 FTSE 100 down 0.7%, FTSE 250 off 0.4% March 22 (Reuters) - London's FTSE 100 inched lower on Monday, dragged by energy and mining stocks as oil and metals prices slipped over fears of slowing demand, while AstraZeneca rose after its COVID-19 vaccine was found effective in a U.S. trial. MET/L Britons should wait before booking summer holidays abroad, social care minister Helen Whately warned, pointing out that there were rising COVID-19 infection rates in Europe.
O/R Mining stocks including Rio Tinto RIO.L, Anglo American AAL.L, and BHP BHPB.L were also among the biggest laggards, falling between 0.4% 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 FTSE 100 down 0.7%, FTSE 250 off 0.4% March 22 (Reuters) - London's FTSE 100 inched lower on Monday, dragged by energy and mining stocks as oil and metals prices slipped over fears of slowing demand, while AstraZeneca rose after its COVID-19 vaccine was found effective in a U.S. trial. MET/L Britons should wait before booking summer holidays abroad, social care minister Helen Whately warned, pointing out that there were rising COVID-19 infection rates in Europe.
4616.0
2021-03-18 00:00:00 UTC
Breakingviews - Capital Calls: U.S. airline IPO validates liftoff
AAL
https://www.nasdaq.com/articles/breakingviews-capital-calls%3A-u.s.-airline-ipo-validates-liftoff-2021-03-18
nan
nan
Reuters Reuters NEW YORK (Reuters Breakingviews) - Concise insights on global finance in the Covid-19 era. ------------------------------------------------- RUNWAY READY. The last thing the U.S. travel market needs is another airline company, but investors could use one that isn’t burning cash. They got that on Wednesday when Apollo Global Management-backed Sun Country Airlines raised almost $220 million in an initial public offering. The company, which ships both people and cargo and signed an important contract with Amazon.com in 2019, inked positive cash flows from operations last year even though revenue fell 40%. That could be one reason why its shares jumped more than 50% in their debut. Its IPO price put the company’s enterprise value at around 4 times 2020 sales, and that’s before accounting for the pop. The valuation is significantly higher than big peers like American Airlines and small ones like Alaska Air, which are both closer to 2 times. The airline now has to live up to such sunny optimism. (By Lauren Silva Laughlin) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
They got that on Wednesday when Apollo Global Management-backed Sun Country Airlines raised almost $220 million in an initial public offering. The company, which ships both people and cargo and signed an important contract with Amazon.com in 2019, inked positive cash flows from operations last year even though revenue fell 40%. The valuation is significantly higher than big peers like American Airlines and small ones like Alaska Air, which are both closer to 2 times.
Reuters Reuters The last thing the U.S. travel market needs is another airline company, but investors could use one that isn’t burning cash. (By Lauren Silva Laughlin) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Reuters Reuters The last thing the U.S. travel market needs is another airline company, but investors could use one that isn’t burning cash. The valuation is significantly higher than big peers like American Airlines and small ones like Alaska Air, which are both closer to 2 times.
Reuters Reuters NEW YORK (Reuters Breakingviews) - Concise insights on global finance in the Covid-19 era. ------------------------------------------------- RUNWAY READY.
4617.0
2021-03-18 00:00:00 UTC
Spirit AeroSystems Is An Uncertain Bet
AAL
https://www.nasdaq.com/articles/spirit-aerosystems-is-an-uncertain-bet-2021-03-18
nan
nan
After observing the lows of $20 in February 2020, the shares of Spirit AeroSystems (NYSE: SPR) have more than doubled to $50 now largely due to the lifting of the FAA’s ban and an uptick in passenger numbers at TSA checkpoints. Comparing the company’s $745 million operating cash outflow in 2020 with the stock’s $1.4 billion drop in market capitalization, Trefis believes that SPR is a risky bet at current levels. The company designs and manufactures aerostructures including fuselage, nacelles, and wings for Boeing and Airbus. Due to the grounding of MAX, Spirit’s order backlog fell by $8.3 billion to $34.2 billion in the past year. Boeing contributes 80% of Spirit’s total revenues with MAX accounting for 54% of the order backlog. Moreover, MAX’s low production rate is likely to weigh on Spirit’s finances in the near-term despite the company’s focus to diversify its business by acquiring Bombardier’s aftermarket service and aerostructure business. Our interactive dashboard analysis highlights Spirit AeroSystems stock performance during the current crisis with that during the 2008 recession. Timeline of 2020 Crisis So Far: 12/12/2019: Coronavirus cases first reported in China 1/31/2020: WHO declares a global health emergency. 2/19/2020: Signs of effective containment in China and hopes of monetary easing by major central banks helps S&P 500 reach a record high 3/23/2020: S&P 500 drops 34% from the peak level seen on Feb 19, as Covid-19 cases accelerate outside China. Doesn’t help that oil prices crash in mid-March amid Saudi-led price war From 3/24/2020: S&P 500 recovers 77% from the lows seen on Mar 23, as the Fed’s multi-billion dollar stimulus package suppresses near-term survival anxiety and infuses liquidity into the system. In contrast, here’s how SPR and the broader market performed during the 2007/2008 crisis. Timeline of 2007-08 Crisis 10/1/2007: Approximate pre-crisis peak in S&P 500 index 9/1/2008 – 10/1/2008: Accelerated market decline corresponding to Lehman bankruptcy filing (9/15/08) 3/1/2009: Approximate bottoming out of S&P 500 index 1/1/2010: Initial recovery to levels before accelerated decline (around 9/1/2008) Spirit Aerosystems Stock vs S&P 500 Performance Over 2007-08 Financial Crisis SPR stock declined from levels of around $38 in September 2007 to levels of around $10 in March 2009 (as the markets bottomed out), implying SPR stock lost 74% from its pre-crisis level. It recovered post the 2008 crisis to levels of about $20 in early 2010 – rising by 100% between March 2009 and January 2010. In comparison, the S&P 500 Index first fell 51% in the wake of the recession before recovering 48% by January 2010. Spirit Aerosystems Fundamentals before the MAX crisis were stable SPR’s Revenues grew by 13% from $7 billion in 2017 to $7.9 billion in 2019, supported by rising production volumes and order backlog. The EPS jumped by 68% from $3.04 in 2017 to $5.11 in 2019 due to lower shares outstanding and a slight improvement in net margin. In 2020, the company’s revenues observed 57% (y-o-y) contraction resulting in a net loss of $870 million as the FAA’s grounding order led to the suspension of MAX’s production. CONCLUSION Phases of Covid-19 crisis: Early- to mid-March 2020: Fear of the coronavirus outbreak spreading rapidly translates into reality, with the number of cases accelerating globally Late-March 2020 onward: Social distancing measures + lockdowns April 2020: Fed stimulus suppresses near-term survival anxiety May-June 2020: Recovery of demand, with gradual lifting of lockdowns – no panic anymore despite a steady increase in the number of cases Since late 2020: Weak quarterly results, but continued improvement in demand and progress with vaccine development buoy market sentiment MAX’s low production rate is likely to weigh on Spirit’s finances despite the company’s focus to diversify its business by acquiring Bombardier’s aftermarket service and aerostructure business. The coronavirus pandemic has created many pricing discontinuities which can offer attractive trading opportunities. For example, you’ll be surprised how the stock valuation for General Dynamics vs. Anthem shows a disconnect with their relative operational growth. You can find many such discontinuous pairs here. See all Trefis Price Estimates and Download Trefis Data here What’s behind Trefis? See How It’s Powering New Collaboration and What-Ifs For CFOs and Finance Teams | Product, R&D, and Marketing Teams The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
After observing the lows of $20 in February 2020, the shares of Spirit AeroSystems (NYSE: SPR) have more than doubled to $50 now largely due to the lifting of the FAA’s ban and an uptick in passenger numbers at TSA checkpoints. Comparing the company’s $745 million operating cash outflow in 2020 with the stock’s $1.4 billion drop in market capitalization, Trefis believes that SPR is a risky bet at current levels. Phases of Covid-19 crisis: Early- to mid-March 2020: Fear of the coronavirus outbreak spreading rapidly translates into reality, with the number of cases accelerating globally Late-March 2020 onward: Social distancing measures + lockdowns April 2020: Fed stimulus suppresses near-term survival anxiety May-June 2020: Recovery of demand, with gradual lifting of lockdowns – no panic anymore despite a steady increase in the number of cases Since late 2020: Weak quarterly results, but continued improvement in demand and progress with vaccine development buoy market sentiment MAX’s low production rate is likely to weigh on Spirit’s finances despite the company’s focus to diversify its business by acquiring Bombardier’s aftermarket service and aerostructure business.
Moreover, MAX’s low production rate is likely to weigh on Spirit’s finances in the near-term despite the company’s focus to diversify its business by acquiring Bombardier’s aftermarket service and aerostructure business. Timeline of 2007-08 Crisis 10/1/2007: Approximate pre-crisis peak in S&P 500 index 9/1/2008 – 10/1/2008: Accelerated market decline corresponding to Lehman bankruptcy filing (9/15/08) 3/1/2009: Approximate bottoming out of S&P 500 index 1/1/2010: Initial recovery to levels before accelerated decline (around 9/1/2008) Spirit Aerosystems Stock vs S&P 500 Performance Over 2007-08 Financial Crisis SPR stock declined from levels of around $38 in September 2007 to levels of around $10 in March 2009 (as the markets bottomed out), implying SPR stock lost 74% from its pre-crisis level. Phases of Covid-19 crisis: Early- to mid-March 2020: Fear of the coronavirus outbreak spreading rapidly translates into reality, with the number of cases accelerating globally Late-March 2020 onward: Social distancing measures + lockdowns April 2020: Fed stimulus suppresses near-term survival anxiety May-June 2020: Recovery of demand, with gradual lifting of lockdowns – no panic anymore despite a steady increase in the number of cases Since late 2020: Weak quarterly results, but continued improvement in demand and progress with vaccine development buoy market sentiment MAX’s low production rate is likely to weigh on Spirit’s finances despite the company’s focus to diversify its business by acquiring Bombardier’s aftermarket service and aerostructure business.
Timeline of 2007-08 Crisis 10/1/2007: Approximate pre-crisis peak in S&P 500 index 9/1/2008 – 10/1/2008: Accelerated market decline corresponding to Lehman bankruptcy filing (9/15/08) 3/1/2009: Approximate bottoming out of S&P 500 index 1/1/2010: Initial recovery to levels before accelerated decline (around 9/1/2008) Spirit Aerosystems Stock vs S&P 500 Performance Over 2007-08 Financial Crisis SPR stock declined from levels of around $38 in September 2007 to levels of around $10 in March 2009 (as the markets bottomed out), implying SPR stock lost 74% from its pre-crisis level. Spirit Aerosystems Fundamentals before the MAX crisis were stable SPR’s Revenues grew by 13% from $7 billion in 2017 to $7.9 billion in 2019, supported by rising production volumes and order backlog. Phases of Covid-19 crisis: Early- to mid-March 2020: Fear of the coronavirus outbreak spreading rapidly translates into reality, with the number of cases accelerating globally Late-March 2020 onward: Social distancing measures + lockdowns April 2020: Fed stimulus suppresses near-term survival anxiety May-June 2020: Recovery of demand, with gradual lifting of lockdowns – no panic anymore despite a steady increase in the number of cases Since late 2020: Weak quarterly results, but continued improvement in demand and progress with vaccine development buoy market sentiment MAX’s low production rate is likely to weigh on Spirit’s finances despite the company’s focus to diversify its business by acquiring Bombardier’s aftermarket service and aerostructure business.
Comparing the company’s $745 million operating cash outflow in 2020 with the stock’s $1.4 billion drop in market capitalization, Trefis believes that SPR is a risky bet at current levels. Timeline of 2007-08 Crisis 10/1/2007: Approximate pre-crisis peak in S&P 500 index 9/1/2008 – 10/1/2008: Accelerated market decline corresponding to Lehman bankruptcy filing (9/15/08) 3/1/2009: Approximate bottoming out of S&P 500 index 1/1/2010: Initial recovery to levels before accelerated decline (around 9/1/2008) Spirit Aerosystems Stock vs S&P 500 Performance Over 2007-08 Financial Crisis SPR stock declined from levels of around $38 in September 2007 to levels of around $10 in March 2009 (as the markets bottomed out), implying SPR stock lost 74% from its pre-crisis level. Phases of Covid-19 crisis: Early- to mid-March 2020: Fear of the coronavirus outbreak spreading rapidly translates into reality, with the number of cases accelerating globally Late-March 2020 onward: Social distancing measures + lockdowns April 2020: Fed stimulus suppresses near-term survival anxiety May-June 2020: Recovery of demand, with gradual lifting of lockdowns – no panic anymore despite a steady increase in the number of cases Since late 2020: Weak quarterly results, but continued improvement in demand and progress with vaccine development buoy market sentiment MAX’s low production rate is likely to weigh on Spirit’s finances despite the company’s focus to diversify its business by acquiring Bombardier’s aftermarket service and aerostructure business.
4618.0
2021-03-17 00:00:00 UTC
'At the limit': Chile's world-leading copper industry rejects lawmaker bid to hike taxes
AAL
https://www.nasdaq.com/articles/at-the-limit%3A-chiles-world-leading-copper-industry-rejects-lawmaker-bid-to-hike-taxes-2021
nan
nan
By Fabian Cambero SANTIAGO, March 17 (Reuters) - Chile's sprawling copper industry has hit its limit in terms of tax burden, a senior industry executive told Reuters on Wednesday, warning lawmakers against a hike in royalties to take advantage of soaring global prices. Left-leaning opposition lawmakers in Chile, the world's top producer of the red metal, have called for levying higher taxes on the industry to help underwrite social programs and stimulus amid the coronavirus crisis. Those calls - including a direct tax on sales - have gained impetus in recent weeks as copper prices hit a decade-long high. The copper industry is a mainstay of the Chilean economy. Diego Hernández, president of Chile's National Mining Society (Sonami), defended the existing system, which he said taxes miners' operating margins at a rate that increases proportionately alongside rising prices. "It brings in the same or more (than a tax on sales) and does not fundamentally affect the less competitive mines," Hernandez told Reuters in a phone interview. Hernandez said a recent study by Chilean Copper agency Cochilco showed that 11 of 21 mines reviewed are already suffering from prohibitively high operating costs, and that additional taxes could cause some to fold. "We have reached a limit, at which we can still survive," he said. But he warned that projects in the country's current portfolio would likely fall by the wayside should taxes increase. Hernandez told Reuters the legislation was also unconstitutional. Opposition lawmakers have proposed a constitutional reform to pave the way for the bill's passage. Such changes, however, require a large majority. Lawmakers have proposed changes to Chile's mining tax scheme several times since the current regime was established in 2011, but they say this time is different. "More than 3 million Chileans have no savings in their pension plans," said lawmaker Catalina Perez, who sponsored the constitutional reform to facilitate the tax hike on copper sales. "The costs of the crisis (must be paid) by those who profit from what is ours." (Reporting by Fabian Cambero in Santiago Writing by Dave Sherwood Editing by Matthew Lewis) ((dave.sherwood@thomsonreuters.com; +56 9 9138 1047, +56 2 2370 4224; Reuters Messaging: dave.sherwood.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.
Left-leaning opposition lawmakers in Chile, the world's top producer of the red metal, have called for levying higher taxes on the industry to help underwrite social programs and stimulus amid the coronavirus crisis. Diego Hernández, president of Chile's National Mining Society (Sonami), defended the existing system, which he said taxes miners' operating margins at a rate that increases proportionately alongside rising prices. Hernandez said a recent study by Chilean Copper agency Cochilco showed that 11 of 21 mines reviewed are already suffering from prohibitively high operating costs, and that additional taxes could cause some to fold.
By Fabian Cambero SANTIAGO, March 17 (Reuters) - Chile's sprawling copper industry has hit its limit in terms of tax burden, a senior industry executive told Reuters on Wednesday, warning lawmakers against a hike in royalties to take advantage of soaring global prices. "It brings in the same or more (than a tax on sales) and does not fundamentally affect the less competitive mines," Hernandez told Reuters in a phone interview. "More than 3 million Chileans have no savings in their pension plans," said lawmaker Catalina Perez, who sponsored the constitutional reform to facilitate the tax hike on copper sales.
By Fabian Cambero SANTIAGO, March 17 (Reuters) - Chile's sprawling copper industry has hit its limit in terms of tax burden, a senior industry executive told Reuters on Wednesday, warning lawmakers against a hike in royalties to take advantage of soaring global prices. Left-leaning opposition lawmakers in Chile, the world's top producer of the red metal, have called for levying higher taxes on the industry to help underwrite social programs and stimulus amid the coronavirus crisis. Hernandez said a recent study by Chilean Copper agency Cochilco showed that 11 of 21 mines reviewed are already suffering from prohibitively high operating costs, and that additional taxes could cause some to fold.
By Fabian Cambero SANTIAGO, March 17 (Reuters) - Chile's sprawling copper industry has hit its limit in terms of tax burden, a senior industry executive told Reuters on Wednesday, warning lawmakers against a hike in royalties to take advantage of soaring global prices. The copper industry is a mainstay of the Chilean economy. Opposition lawmakers have proposed a constitutional reform to pave the way for the bill's passage.
4619.0
2021-03-16 00:00:00 UTC
Pre-Market Most Active for Mar 16, 2021 : AMC, SVRA, FCEL, SYPR, FUTU, ENZ, F, SOS, SQQQ, GME, AAL, CCIV
AAL
https://www.nasdaq.com/articles/pre-market-most-active-for-mar-16-2021-%3A-amc-svra-fcel-sypr-futu-enz-f-sos-sqqq-gme-aal
nan
nan
The NASDAQ 100 Pre-Market Indicator is up 67.45 to 13,149.99. The total Pre-Market volume is currently 26,451,973 shares traded. The following are the most active stocks for the pre-market session: AMC Entertainment Holdings, Inc. (AMC) is -0.67 at $13.37, with 5,262,848 shares traded. AMC's current last sale is 334.25% of the target price of $4. Savara, Inc. (SVRA) is +0.48 at $2.25, with 3,494,787 shares traded.SVRA is scheduled to provide an earnings report on 3/18/2021, for the fiscal quarter ending Dec2020. The consensus earnings per share forecast is -0.07 per share, which represents a -28 percent increase over the EPS one Year Ago FuelCell Energy, Inc. (FCEL) is -1.4 at $15.63, with 1,944,433 shares traded. GlobeNewswire Reports: FuelCell Energy Reports Fourth Quarter and Fiscal Year 2020 Financial Results Sypris Solutions, Inc. (SYPR) is +0.77 at $4.52, with 1,936,208 shares traded. Futu Holdings Limited (FUTU) is +14.49 at $162.85, with 1,904,510 shares traded. GlobeNewswire Reports: Futu Announces Agreement to Purchase Shares by a Leading Global Investment Firm Enzo Biochem, Inc. (ENZ) is +0.85 at $3.81, with 1,649,966 shares traded. Ford Motor Company (F) is -0.15 at $13.05, with 1,349,604 shares traded. F's current last sale is 108.75% of the target price of $12. SOS Limited (SOS) is -0.41 at $7.75, with 1,128,422 shares traded. ProShares UltraPro Short QQQ (SQQQ) is -0.24 at $13.14, with 1,104,085 shares traded. This represents a 11.73% increase from its 52 Week Low. Gamestop Corporation (GME) is -27.53 at $192.61, with 1,023,844 shares traded.GME is scheduled to provide an earnings report on 3/23/2021, for the fiscal quarter ending Jan2021. The consensus earnings per share forecast is 1.46 per share, which represents a 127 percent increase over the EPS one Year Ago American Airlines Group, Inc. (AAL) is +0.11 at $25.28, with 1,006,416 shares traded., following a 52-week high recorded in prior regular session. Churchill Capital Corp IV (CCIV) is +1.48 at $30.17, with 858,731 shares traded. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
American Airlines Group, Inc. (AAL) is +0.11 at $25.28, with 1,006,416 shares traded., following a 52-week high recorded in prior regular session. Savara, Inc. (SVRA) is +0.48 at $2.25, with 3,494,787 shares traded.SVRA is scheduled to provide an earnings report on 3/18/2021, for the fiscal quarter ending Dec2020. GlobeNewswire Reports: Futu Announces Agreement to Purchase Shares by a Leading Global Investment Firm
American Airlines Group, Inc. (AAL) is +0.11 at $25.28, with 1,006,416 shares traded., following a 52-week high recorded in prior regular session. The consensus earnings per share forecast is -0.07 per share, which represents a -28 percent increase over the EPS one Year Ago GlobeNewswire Reports: FuelCell Energy Reports Fourth Quarter and Fiscal Year 2020 Financial Results
American Airlines Group, Inc. (AAL) is +0.11 at $25.28, with 1,006,416 shares traded., following a 52-week high recorded in prior regular session. AMC Entertainment Holdings, Inc. (AMC) is -0.67 at $13.37, with 5,262,848 shares traded. The consensus earnings per share forecast is -0.07 per share, which represents a -28 percent increase over the EPS one Year Ago
American Airlines Group, Inc. (AAL) is +0.11 at $25.28, with 1,006,416 shares traded., following a 52-week high recorded in prior regular session. The NASDAQ 100 Pre-Market Indicator is up 67.45 to 13,149.99. GlobeNewswire Reports: FuelCell Energy Reports Fourth Quarter and Fiscal Year 2020 Financial Results
4620.0
2021-03-15 00:00:00 UTC
Is the Pandemic Over? Airlines Seem to Think So
AAL
https://www.nasdaq.com/articles/is-the-pandemic-over-airlines-seem-to-think-so-2021-03-15
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After a rough 2020, the airline industry is signaling clear skies ahead going into the spring and summer travel season. On Monday, industry execs were making the rounds at a J.P. Morgan investment conference, and the message was by and large upbeat. Delta Air Lines (NYSE: DAL) CEO Ed Bastian warned that while the airline was likely to post a "large loss" in the current quarter, bookings have picked up in the last five weeks as the vaccine rollout gained momentum. March revenue is coming in about 40% higher than February, and the month is "at or pretty darn close to breakeven" in terms of cash burn, Bastian said. Image source: Getty Images. The tone was similar from others. United Airlines Holdings (NASDAQ: UAL) CEO Scott Kirby said his company expects to halt cash burn in March and continue the positive trend. And American Airlines Group (NASDAQ: AAL) said it has seen "a real uptick" in bookings, with the last three weeks the best for ticket sales since the pandemic began. The data from the Transportation Security Administration also suggests a rebound in travel demand. The TSA screened more than 1 million passengers on Sunday, the fourth consecutive day when screenings exceeded 1 million. That hasn't happened since mid-March 2020, before the pandemic fully took hold in the United States. Though the airlines are on the mend, a full recovery is still expected to take time. Most of the initial demand surge is expected to be leisure travel, and not more-lucrative business travel. Given the uneven vaccination rates around the globe, international traffic is also likely to lag. The airlines also took on billions in new debt during the pandemic, and will need time to repair their balance sheets before focusing on post-downturn expansion. 10 stocks we like better than Delta Air Lines When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Delta Air Lines wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of February 24, 2021 Lou Whiteman owns shares of Delta Air Lines. 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.
And American Airlines Group (NASDAQ: AAL) said it has seen "a real uptick" in bookings, with the last three weeks the best for ticket sales since the pandemic began. Delta Air Lines (NYSE: DAL) CEO Ed Bastian warned that while the airline was likely to post a "large loss" in the current quarter, bookings have picked up in the last five weeks as the vaccine rollout gained momentum. March revenue is coming in about 40% higher than February, and the month is "at or pretty darn close to breakeven" in terms of cash burn, Bastian said.
And American Airlines Group (NASDAQ: AAL) said it has seen "a real uptick" in bookings, with the last three weeks the best for ticket sales since the pandemic began. United Airlines Holdings (NASDAQ: UAL) CEO Scott Kirby said his company expects to halt cash burn in March and continue the positive trend. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.
And American Airlines Group (NASDAQ: AAL) said it has seen "a real uptick" in bookings, with the last three weeks the best for ticket sales since the pandemic began. Delta Air Lines (NYSE: DAL) CEO Ed Bastian warned that while the airline was likely to post a "large loss" in the current quarter, bookings have picked up in the last five weeks as the vaccine rollout gained momentum. 10 stocks we like better than Delta Air Lines When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen.
And American Airlines Group (NASDAQ: AAL) said it has seen "a real uptick" in bookings, with the last three weeks the best for ticket sales since the pandemic began. Most of the initial demand surge is expected to be leisure travel, and not more-lucrative business travel. * David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Delta Air Lines wasn't one of them!
4621.0
2021-03-15 00:00:00 UTC
Stock Market Today: Recovery Plays Lead the Way as Stocks Calmly Climb
AAL
https://www.nasdaq.com/articles/stock-market-today%3A-recovery-plays-lead-the-way-as-stocks-calmly-climb-2021-03-15
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Wall Street kicked off the week with a surprisingly, refreshingly gentle Monday session with modest but steady movement across most of the market. The tech-heavy Nasdaq Composite, which has spent much of the past few weeks lurching up and down on inflation fears, led the other major indices thanks to the likes of Apple (AAPL, +2.5%) and Facebook (FB, +2.0%). SEE MORE 65 Best Dividend Stocks You Can Count On But among the market's biggest leaders were a wide variety of "recovery" plays, including carriers such as United Airlines (UAL, +8.3%) and American Airlines (AAL, +7.7%), cruise lines including Carnival (CCL, +4.7%) and Norwegian Cruise Line Holdings (NCLH, +2.4%), and restaurant stocks such as McDonald's (MCD, +3.8%) and KFC/Taco Bell parent Yum! Brands (YUM, +3.0%). "As vaccines become more widely available and the economy opens up, we should see a rapid increase in spending on services," says Raymond James Chief Economist Scott Brown. "One lesson from the 1918 pandemic is that people will be eager to make up for lost time (as we saw during the Roaring Twenties)." The Nasdaq closed with a 1.1% gain to 13,459. The S&P 500 (+0.7% to 3,968), Dow Jones Industrial Average (+0.5% to 32,953) and Russell 2000 (+0.3% to 2,360) all finished with more modest improvements, but also all notched record closes. Sign up for Kiplinger's FREE Investing Weekly e-letter for stock, ETF and mutual fund recommendations, and other investing advice. Other action in the stock market today: U.S. crude oil futures slipped 0.2% to settle at $65.50 per barrel. Gold futures improved by 0.6% to $1,729.20 per ounce. Bitcoin prices soared to more than $61,000 over the weekend, but finished Monday 0.2% lower from Friday's levels to $56,657. (Bitcoin trades 24 hours a day; prices reported here are as of 4 p.m. each trading day.) Start Monitoring What Investors Are Throwing Away If this is all starting to sound familiar, that's because you've been hearing it for a while. SEE MORE 11 Hot Upcoming IPOs to Watch For in the Rest of 2021 Analysts and strategists have been regularly and frequently beating the drum of an economic reopening that will reanimate cyclical sectors – which, by the way, will benefit all the more from weak year-over-year earnings and revenue comparisons. But in investing, as in chess, it pays to think a few steps ahead. Investors are increasingly piling into the reflation/recovery trade, and it's clear that to do so, some of them are cashing out of tech and other growth stocks that had been sporting sometimes outrageous valuations. That's worth keeping an eye on. You could start building a wish list from some of our top tech picks from the start of the year, or our list of long-term S&P 500 buys that would look far more attractive on a dip. You could also look for opportunities in long-term trends that the coronavirus helped accelerate. Take video game stocks, for instance. Wall Street's experts still project rampant growth for this industry in the years to come, but these companies' shares went ballistic during 2020 as COVID accelerated the trend. Now that they're starting to cool off as investors chase the next thing, these video game stocks could start approaching much more reasonable levels – and offer opportunity to new buyers. Kyle Woodley was long NCLH as of this writing. SEE MORE The 15 Best Value Stocks to Buy for 2021 The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
SEE MORE 65 Best Dividend Stocks You Can Count On But among the market's biggest leaders were a wide variety of "recovery" plays, including carriers such as United Airlines (UAL, +8.3%) and American Airlines (AAL, +7.7%), cruise lines including Carnival (CCL, +4.7%) and Norwegian Cruise Line Holdings (NCLH, +2.4%), and restaurant stocks such as McDonald's (MCD, +3.8%) and KFC/Taco Bell parent Yum! The tech-heavy Nasdaq Composite, which has spent much of the past few weeks lurching up and down on inflation fears, led the other major indices thanks to the likes of Apple (AAPL, +2.5%) and Facebook (FB, +2.0%). SEE MORE 11 Hot Upcoming IPOs to Watch For in the Rest of 2021 Analysts and strategists have been regularly and frequently beating the drum of an economic reopening that will reanimate cyclical sectors – which, by the way, will benefit all the more from weak year-over-year earnings and revenue comparisons.
SEE MORE 65 Best Dividend Stocks You Can Count On But among the market's biggest leaders were a wide variety of "recovery" plays, including carriers such as United Airlines (UAL, +8.3%) and American Airlines (AAL, +7.7%), cruise lines including Carnival (CCL, +4.7%) and Norwegian Cruise Line Holdings (NCLH, +2.4%), and restaurant stocks such as McDonald's (MCD, +3.8%) and KFC/Taco Bell parent Yum! Take video game stocks, for instance. Now that they're starting to cool off as investors chase the next thing, these video game stocks could start approaching much more reasonable levels – and offer opportunity to new buyers.
SEE MORE 65 Best Dividend Stocks You Can Count On But among the market's biggest leaders were a wide variety of "recovery" plays, including carriers such as United Airlines (UAL, +8.3%) and American Airlines (AAL, +7.7%), cruise lines including Carnival (CCL, +4.7%) and Norwegian Cruise Line Holdings (NCLH, +2.4%), and restaurant stocks such as McDonald's (MCD, +3.8%) and KFC/Taco Bell parent Yum! Sign up for Kiplinger's FREE Investing Weekly e-letter for stock, ETF and mutual fund recommendations, and other investing advice. Now that they're starting to cool off as investors chase the next thing, these video game stocks could start approaching much more reasonable levels – and offer opportunity to new buyers.
SEE MORE 65 Best Dividend Stocks You Can Count On But among the market's biggest leaders were a wide variety of "recovery" plays, including carriers such as United Airlines (UAL, +8.3%) and American Airlines (AAL, +7.7%), cruise lines including Carnival (CCL, +4.7%) and Norwegian Cruise Line Holdings (NCLH, +2.4%), and restaurant stocks such as McDonald's (MCD, +3.8%) and KFC/Taco Bell parent Yum! (Bitcoin trades 24 hours a day; prices reported here are as of 4 p.m. each trading day.) Wall Street's experts still project rampant growth for this industry in the years to come, but these companies' shares went ballistic during 2020 as COVID accelerated the trend.
4622.0
2021-03-15 00:00:00 UTC
Why Airline Shares Are Flying Higher Today
AAL
https://www.nasdaq.com/articles/why-airline-shares-are-flying-higher-today-2021-03-15
nan
nan
What happened The airlines on Monday are making the rounds with investors talking up the industry's improving financial position, and it is having the desired effect. Airline stocks are on the move higher on Monday, with American Airlines Group (NASDAQ: AAL) up as much as 11%, United Airlines Holdings (NASDAQ: UAL) up nearly 10%, and Delta Air Lines (NYSE: DAL), JetBlue Airways (NASDAQ: JBLU), and Spirit Airlines (NYSE: SAVE) each up 5%. So what Airlines endured a miserable 2020, with the pandemic weighing on travel demand and sending the companies to deep losses. They are still losing money, but airline execs taking the virtual stage for the J.P. Morgan Industrials Conference on Monday said that should change in the weeks and months to come. Delta CEO Ed Bastian said that while the airline will post a large loss in the current quarter, bookings have picked up in recent weeks and he expects the airline to be "at or pretty darn close to breakeven" in March in terms of cash burn. Image source: Getty Images. United CEO Scott Kirby had a similar forecast, saying his airline expects to halt cash burn in March and continue that positive trend in the months to follow. American, perhaps the weakest of the major carriers heading into the pandemic, during the conference and in a follow-up interview on CNBC said, "the last three weeks have been the three strongest weeks since the pandemic hit." JetBlue in a regulatory fling said it "has experienced an improvement in bookings by leisure and visiting-friends-and-relatives customers," though it did not provide an update on its cash situation. And Spirit said it expects its adjusted margin to "come in toward the better end" of its guidance of negative 45% to negative 55%. There is evidence from the Transportation Security Administration that backs up all that optimism. The TSA screened more than 1 million passengers on Sunday, the fourth consecutive day where throughput exceeded 1 million passengers. That hasn't happened since March 2020. Now what Conditions are definitely improving, and the bull case scenario from last fall, a widespread vaccine in time for the summer vacation season, appears to be materializing. Still, investors need to be careful here. Airline data by YCharts The stocks have rallied in 2021 in anticipation of that improvement, and most now are ahead of where they were prior to the pandemic in terms of debt-adjusted valuation. That's tough to justify, given we still don't know how long it will take for more lucrative segments of the industry including business and international flights to return. Southwest Airlines (NYSE: LUV) CEO Gary Kelly told the investment conference going by past recessions he believes it could take five years for business travel to fully recover. For now, this is a momentum trade. The stocks might trade up more in the weeks to come on continued excitement about the post-pandemic world, but based on current valuations and the risks that still remain it is hard to get excited about recommending buying these stocks at these altitudes. 10 stocks we like better than Spirit Airlines When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Spirit Airlines wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of February 24, 2021 Lou Whiteman owns shares of Delta Air Lines and Spirit Airlines. The Motley Fool owns shares of 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.
Airline stocks are on the move higher on Monday, with American Airlines Group (NASDAQ: AAL) up as much as 11%, United Airlines Holdings (NASDAQ: UAL) up nearly 10%, and Delta Air Lines (NYSE: DAL), JetBlue Airways (NASDAQ: JBLU), and Spirit Airlines (NYSE: SAVE) each up 5%. They are still losing money, but airline execs taking the virtual stage for the J.P. Morgan Industrials Conference on Monday said that should change in the weeks and months to come. United CEO Scott Kirby had a similar forecast, saying his airline expects to halt cash burn in March and continue that positive trend in the months to follow.
Airline stocks are on the move higher on Monday, with American Airlines Group (NASDAQ: AAL) up as much as 11%, United Airlines Holdings (NASDAQ: UAL) up nearly 10%, and Delta Air Lines (NYSE: DAL), JetBlue Airways (NASDAQ: JBLU), and Spirit Airlines (NYSE: SAVE) each up 5%. See the 10 stocks *Stock Advisor returns as of February 24, 2021 Lou Whiteman owns shares of Delta Air Lines and Spirit Airlines. The Motley Fool recommends Delta Air Lines, JetBlue Airways, and Southwest Airlines.
Airline stocks are on the move higher on Monday, with American Airlines Group (NASDAQ: AAL) up as much as 11%, United Airlines Holdings (NASDAQ: UAL) up nearly 10%, and Delta Air Lines (NYSE: DAL), JetBlue Airways (NASDAQ: JBLU), and Spirit Airlines (NYSE: SAVE) each up 5%. Delta CEO Ed Bastian said that while the airline will post a large loss in the current quarter, bookings have picked up in recent weeks and he expects the airline to be "at or pretty darn close to breakeven" in March in terms of cash burn. See the 10 stocks *Stock Advisor returns as of February 24, 2021 Lou Whiteman owns shares of Delta Air Lines and Spirit Airlines.
Airline stocks are on the move higher on Monday, with American Airlines Group (NASDAQ: AAL) up as much as 11%, United Airlines Holdings (NASDAQ: UAL) up nearly 10%, and Delta Air Lines (NYSE: DAL), JetBlue Airways (NASDAQ: JBLU), and Spirit Airlines (NYSE: SAVE) each up 5%. That hasn't happened since March 2020. * David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Spirit Airlines wasn't one of them!
4623.0
2021-03-15 00:00:00 UTC
The Unlikeliest Winners in Monday's Stock Market Drop
AAL
https://www.nasdaq.com/articles/the-unlikeliest-winners-in-mondays-stock-market-drop-2021-03-15
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The stock market did extremely well last week, but Wall Street came out of the weekend suffering a case of Monday blues. After a very brief move higher at the open, stock market participants seemed to be ready for a pause in the recovery, causing several major market benchmarks to fall from record levels. As of 11:30 a.m. EDT, the Dow Jones Industrial Average (DJINDICES: ^DJI) was down 132 points to 32,647. The S&P 500 (SNPINDEX: ^GSPC) had lost 16 points to 3,927, and the Nasdaq Composite (NASDAQINDEX: ^IXIC) had fallen 45 points to 13,275. Yet not every part of the market lost its upward momentum. It's been surprising just how strong various parts of the travel industry have been lately, and today, both cruise ship operators and airline stocks saw good-sized gains even in a down market. Yet there's still a lot of doubt about when and how much these hard-hit companies can recover even once the COVID-19 pandemic comes under control. Image source: Getty Images. Cruisin' higher Major cruise ship stocks rose on Monday morning. Royal Caribbean (NYSE: RCL) led the way with a nearly 4% rise, while Norwegian Cruise Line Holdings (NYSE: NCLH) and Carnival (NYSE: CCL) (NYSE: CUK) settled for gains of between 2% and 3%. Those watching the cruise ship industry have seen two opposing forces at work. On one hand, there's undoubtedly huge pent-up demand among travelers who'd like to go to sea. Stock analysts at Truist highlighted discussions they'd had with travel agencies, asserting that interest in high-end cruises is especially strong. That prompted Truist to boost its price target on Carnival by $2, to $16 per share. However, the industry itself isn't coy in revealing the challenges ahead. Carnival CEO Arnold Donald believes that cruise ship operations aren't likely to return to pre-pandemic levels until 2023 at the earliest. The pressure on cruise operators to come out of prolonged lockdown periods while still guarding against any future outbreaks will be fierce. Investors still see cruise ship stocks as an obvious reopening play. But long after the rest of the economy has returned to normal, cruise operators are likely to keep facing challenges as they try to dig out from their herculean efforts just to survive the pandemic. Taking flight Meanwhile, airline stocks continued to gain altitude. American Airlines Group (NASDAQ: AAL) and United Airlines Holdings (NASDAQ: UAL) topped the list with gains of 7%, while JetBlue Airways (NASDAQ: JBLU) wasn't far behind with a 5% rise. That added to rising fortunes on Friday. The industry is seeing signs of pent-up demand turning into future travel. Both JetBlue and Southwest Airlines (NYSE: LUV) said Monday that leisure bookings are steadily rising. Southwest believes it will burn slightly less cash than previously expected, with expectations for operating revenue to recover further in March and April. Similarly, JetBlue believes that it won't suffer as big a drop in first-quarter revenue as previously anticipated, upgrading its guidance to a drop of 61% to 64% rather than the previous 65% to 70% range. Some airlines painted an even rosier picture. United believes it could finally turn cash-flow positive in March, with the likelihood of that trend continuing if bookings stay where they are now. Similarly, Delta Air Lines (NYSE: DAL) CEO Ed Bastian was upbeat about the state of the industry. For now, though, business travel hasn't shown as many signs of recovery as leisure travel. Airlines will need help from both sectors in order to bounce back fully. A long-term approach The resiliency in travel stocks has been amazing given the huge hits airline and cruise businesses took during the pandemic. Investors appear to have an extremely long-term view with respect to the ability of these companies to survive tough conditions. Anything short of fully meeting optimistic scenarios, however, could cause a quick reversal in the gains for these stocks. 10 stocks we like better than United Airlines Holdings When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and United Airlines Holdings wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of February 24, 2021 Dan Caplinger has no position in any of the stocks mentioned. The Motley Fool recommends Carnival, 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.
American Airlines Group (NASDAQ: AAL) and United Airlines Holdings (NASDAQ: UAL) topped the list with gains of 7%, while JetBlue Airways (NASDAQ: JBLU) wasn't far behind with a 5% rise. It's been surprising just how strong various parts of the travel industry have been lately, and today, both cruise ship operators and airline stocks saw good-sized gains even in a down market. Carnival CEO Arnold Donald believes that cruise ship operations aren't likely to return to pre-pandemic levels until 2023 at the earliest.
American Airlines Group (NASDAQ: AAL) and United Airlines Holdings (NASDAQ: UAL) topped the list with gains of 7%, while JetBlue Airways (NASDAQ: JBLU) wasn't far behind with a 5% rise. Royal Caribbean (NYSE: RCL) led the way with a nearly 4% rise, while Norwegian Cruise Line Holdings (NYSE: NCLH) and Carnival (NYSE: CCL) (NYSE: CUK) settled for gains of between 2% and 3%. Similarly, Delta Air Lines (NYSE: DAL) CEO Ed Bastian was upbeat about the state of the industry.
American Airlines Group (NASDAQ: AAL) and United Airlines Holdings (NASDAQ: UAL) topped the list with gains of 7%, while JetBlue Airways (NASDAQ: JBLU) wasn't far behind with a 5% rise. It's been surprising just how strong various parts of the travel industry have been lately, and today, both cruise ship operators and airline stocks saw good-sized gains even in a down market. See the 10 stocks *Stock Advisor returns as of February 24, 2021 Dan Caplinger has no position in any of the stocks mentioned.
American Airlines Group (NASDAQ: AAL) and United Airlines Holdings (NASDAQ: UAL) topped the list with gains of 7%, while JetBlue Airways (NASDAQ: JBLU) wasn't far behind with a 5% rise. It's been surprising just how strong various parts of the travel industry have been lately, and today, both cruise ship operators and airline stocks saw good-sized gains even in a down market. Cruisin' higher Major cruise ship stocks rose on Monday morning.
4624.0
2021-03-15 00:00:00 UTC
METALS-China data, supply concerns lift copper prices to near two-week high
AAL
https://www.nasdaq.com/articles/metals-china-data-supply-concerns-lift-copper-prices-to-near-two-week-high-2021-03-15
nan
nan
Updates prices, adds analyst comment March 15 (Reuters) - Copper prices rose on Monday to their highest in almost two weeks, building on last week's gains as industrial output growth in top metals consumer China accelerated faster than expected in January-February and concerns over global supply resurfaced. Three-month copper on the London Metal Exchange CMCU3 was up 0.4% at $9,124.50 a tonne by 0350 GMT, after earlier rising to $9,199.50, the strongest since March 3. The most-traded May copper contract on the Shanghai Futures Exchange SCFcv1 climbed 1.1% to 67,770 yuan ($10,421.34) a tonne. Earlier in the day, it hit its highest since March 3 at 68,230 yuan. China's industrial output grew 35.1% in January-February from a year ago, beating a 30% surge expected in a Reuters poll and faster than the 7.3% gain in December, suggesting a sharp rebound of the world's second-largest economy in the first quarter. "The crash in activity last year is swelling the year-on-year comparisons but it's not all about base effects," said ING's Asia senior economist Prakash Sakpal. "The underlying recovery also has seen some momentum." FUNDAMENTALS * China's output of 10 nonferrous metals, including copper, aluminium, lead, zinc and nickel, rose 10.6% in January-February from a year earlier to 10.56 million tonnes. * Commodities trader Trafigura sees a significant supply deficit in the copper market and a prolonged high-price cycle. * Miners Vale SA VALE3.SA, Anglo American PLc AAL.L and Chile's Codelco expect demand for copper to strengthen in the coming years on growing demand for environmentally friendly cars. * Other metals also advanced. In London, aluminium CMAL3 rose 1.1% to $2,195/tonne, zinc CMZN3 gained 0.8% to $2,826/tonne, and lead CMPB3 climbed 0.2% to $1,966/tonne. Nickel CMNI3 dropped 0.6% to $15,915/tonne, while tin CMSN3 fell 0.4% to $25,495/tonne. * In Shanghai, aluminium SAFcv1 rose 1.6%, zinc SZNcv1 gained 0.6%, and lead SPBcv1 climbed 0.6%. Nickel SNIcv1 slumped 1.9%, while tin SSNcv1 slid 2.1%. * For the top stories in metals and other news, click TOP/MTL or MET/L (Reporting by Enrico Dela Cruz in Manila, Editing by Sherry Jacob-Phillips and Subhranshu Sahu) ((enrico.delacruz@tr.com)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
* Miners Vale SA VALE3.SA, Anglo American PLc AAL.L and Chile's Codelco expect demand for copper to strengthen in the coming years on growing demand for environmentally friendly cars. China's industrial output grew 35.1% in January-February from a year ago, beating a 30% surge expected in a Reuters poll and faster than the 7.3% gain in December, suggesting a sharp rebound of the world's second-largest economy in the first quarter. "The crash in activity last year is swelling the year-on-year comparisons but it's not all about base effects," said ING's Asia senior economist Prakash Sakpal.
* Miners Vale SA VALE3.SA, Anglo American PLc AAL.L and Chile's Codelco expect demand for copper to strengthen in the coming years on growing demand for environmentally friendly cars. Updates prices, adds analyst comment March 15 (Reuters) - Copper prices rose on Monday to their highest in almost two weeks, building on last week's gains as industrial output growth in top metals consumer China accelerated faster than expected in January-February and concerns over global supply resurfaced. * China's output of 10 nonferrous metals, including copper, aluminium, lead, zinc and nickel, rose 10.6% in January-February from a year earlier to 10.56 million tonnes.
* Miners Vale SA VALE3.SA, Anglo American PLc AAL.L and Chile's Codelco expect demand for copper to strengthen in the coming years on growing demand for environmentally friendly cars. Updates prices, adds analyst comment March 15 (Reuters) - Copper prices rose on Monday to their highest in almost two weeks, building on last week's gains as industrial output growth in top metals consumer China accelerated faster than expected in January-February and concerns over global supply resurfaced. Three-month copper on the London Metal Exchange CMCU3 was up 0.4% at $9,124.50 a tonne by 0350 GMT, after earlier rising to $9,199.50, the strongest since March 3.
* Miners Vale SA VALE3.SA, Anglo American PLc AAL.L and Chile's Codelco expect demand for copper to strengthen in the coming years on growing demand for environmentally friendly cars. Three-month copper on the London Metal Exchange CMCU3 was up 0.4% at $9,124.50 a tonne by 0350 GMT, after earlier rising to $9,199.50, the strongest since March 3. The most-traded May copper contract on the Shanghai Futures Exchange SCFcv1 climbed 1.1% to 67,770 yuan ($10,421.34) a tonne.
4625.0
2021-03-15 00:00:00 UTC
Investors Remain Overconfident in a United Airlines Stock Comeback
AAL
https://www.nasdaq.com/articles/investors-remain-overconfident-in-a-united-airlines-stock-comeback-2021-03-15
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Is now the time to bet on a recovery for United Airlines (NASDAQ:UAL) stock? In the past year, we’ve seen many false starts for an airline stock recovery following the Covid-19 outbreak. Remember back in June, when airline stocks spiked on recovery hopes, even as the outbreak was still playing out? Source: NextNewMedia / Shutterstock.com Sure, this time the situation’s a lot different. With the vaccine rollout well underway and evidence of pent-up travel demand coming out, all signs point to an airline industry recovery in a matter of months, not years. In anticipation of a big comeback, investors have bid up this stock in the past few weeks. After trading for $40 per share on Feb. 1, UAL currently trades for around $60 per share. Shares remain far below their pre-pandemic price levels. Yet, this recent rally may be yet another example of premature confidence in a comeback for this sector. Even if the current narrative plays out, the road to a full recovery remains many years in the making. In short, there may not be enough room for more gains in the near term. Keep this in mind before jumping into this recovery play. UAL Stock: Sentiment vs. Fundamentals Admittedly, trying to assess airline stocks based only on fundamentals may not be the best move. Ignoring the overly bullish sentiment held by investors right now may result in missing out on some tremendous gains. Or worse, big losses, if you decide to bet against the crowd and go short this sector. 7 Biotech Stocks With Catalysts That Go Far Beyond Covid-19 Vaccines That is to say, airline stocks like United Airlines could continue to trade out of whack with fundamentals as long as we continue to see headlines touting a rapid travel economy recovery just around the corner. But, at some point, the cold, hard numbers are going to dictate price action for UAL stock. What do I mean? Recent headlines may point to “pent-up demand” fueling a sooner-than-expected rebound for travel. But, more detailed analysis shows a full recovery remains years in the making. For example, ratings agency Fitch doesn’t see the sector getting back to pre-pandemic levels until 2024 at the earliest. Meanwhile, United continues to contend with heavy losses as travel demand, as indicated from Transportation Security Administration (TSA) checkpoint travel numbers, still sits under where it was pre-outbreak. Yes, cash burn isn’t nearly as bad as it was when lockdowns were at their worst. But, with losses this year expected to come in at $9.52 per share, 2021 will be a transitional one as the company itself indicated when it released full-year 2020 results back in January. Why Shares Could Pullback as Results Underwhelm So far, it’s been general confidence in a travel economy recovery backing up the bull case for UAL stock. That’s been bad news for bears, who have lost out trying to go against the stock on the numbers alone. But, going forward, their thesis could start to play out. How? The current narrative is that, after vaccines get distributed through the spring and early summer, things will start resembling the “old normal” again by the start of the second half of 2021. As more people feel comfortable getting back on planes, pent-up demand will mean stronger results for United Airlines, as well as for its rivals, such as American Airlines (NASDAQ:AAL) and Delta Airlines (NYSE:DAL). Yes, this projected outcome could play out. But, even if this does happen, it’s still going to take years before financial results get back to their pre-pandemic high-water mark. This will limit how much further these stocks will climb. And, it could possibly result in a pullback as investors reassess valuations for the sector. What does that mean for UAL stock? Based upon analyst consensus, United will return to profitability in 2022, with projected earnings of around $3.31 per share. Given that the price-to-earnings (P/E) ratio hovered in the high-single digits during better times, this isn’t going to be enough to support shares at today’s prices. This points to shares pulling back toward a more reasonable valuation. Wait for More Reasonable Prices Before Buying United Given analysis consensus for 2022, I believe $30 to $40 per share is a fair price to pay for United Airlines stock. But, I will concede results next year could come in at the higher end of analyst projections. With some on the sell-side predicting earnings of $6.50 per share in 2022, there may be enough on the immediate horizon to support the stock at today’s price levels. But, another move higher, such as back to its pre-Covid-19 prices of around $90 per share? That may take years to happen. With the high chances UAL stock holds steady or even heads lower from here, wait for more reasonable prices before buying. On the date of publication, Thomas Niel did not (either directly or indirectly) hold any positions in the securities mentioned in this article. Thomas Niel, contributor for InvestorPlace.com, has been writing single-stock analysis for web-based publications since 2016. The post Investors Remain Overconfident in a United Airlines Stock Comeback 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.
As more people feel comfortable getting back on planes, pent-up demand will mean stronger results for United Airlines, as well as for its rivals, such as American Airlines (NASDAQ:AAL) and Delta Airlines (NYSE:DAL). With the vaccine rollout well underway and evidence of pent-up travel demand coming out, all signs point to an airline industry recovery in a matter of months, not years. Why Shares Could Pullback as Results Underwhelm So far, it’s been general confidence in a travel economy recovery backing up the bull case for UAL stock.
As more people feel comfortable getting back on planes, pent-up demand will mean stronger results for United Airlines, as well as for its rivals, such as American Airlines (NASDAQ:AAL) and Delta Airlines (NYSE:DAL). InvestorPlace - Stock Market News, Stock Advice & Trading Tips Is now the time to bet on a recovery for United Airlines (NASDAQ:UAL) stock? 7 Biotech Stocks With Catalysts That Go Far Beyond Covid-19 Vaccines That is to say, airline stocks like United Airlines could continue to trade out of whack with fundamentals as long as we continue to see headlines touting a rapid travel economy recovery just around the corner.
As more people feel comfortable getting back on planes, pent-up demand will mean stronger results for United Airlines, as well as for its rivals, such as American Airlines (NASDAQ:AAL) and Delta Airlines (NYSE:DAL). InvestorPlace - Stock Market News, Stock Advice & Trading Tips Is now the time to bet on a recovery for United Airlines (NASDAQ:UAL) stock? 7 Biotech Stocks With Catalysts That Go Far Beyond Covid-19 Vaccines That is to say, airline stocks like United Airlines could continue to trade out of whack with fundamentals as long as we continue to see headlines touting a rapid travel economy recovery just around the corner.
As more people feel comfortable getting back on planes, pent-up demand will mean stronger results for United Airlines, as well as for its rivals, such as American Airlines (NASDAQ:AAL) and Delta Airlines (NYSE:DAL). Shares remain far below their pre-pandemic price levels. 7 Biotech Stocks With Catalysts That Go Far Beyond Covid-19 Vaccines That is to say, airline stocks like United Airlines could continue to trade out of whack with fundamentals as long as we continue to see headlines touting a rapid travel economy recovery just around the corner.
4626.0
2021-03-15 00:00:00 UTC
S&P 500 Movers: LLY, AAL
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https://www.nasdaq.com/articles/sp-500-movers%3A-lly-aal-2021-03-15
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In early trading on Monday, shares of American Airlines Group topped the list of the day's best performing components of the S&P 500 index, trading up 9.9%. Year to date, American Airlines Group registers a 62.8% gain. And the worst performing S&P 500 component thus far on the day is Eli Lilly, trading down 7.8%. Eli Lilly is showing a gain of 13.7% looking at the year to date performance. Two other components making moves today are Occidental Petroleum, trading down 3.7%, and United Airlines Holdings, trading up 6.1% on the day. VIDEO: S&P 500 Movers: LLY, AAL The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
VIDEO: S&P 500 Movers: LLY, AAL The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Year to date, American Airlines Group registers a 62.8% gain. And the worst performing S&P 500 component thus far on the day is Eli Lilly, trading down 7.8%.
VIDEO: S&P 500 Movers: LLY, AAL The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In early trading on Monday, shares of American Airlines Group topped the list of the day's best performing components of the S&P 500 index, trading up 9.9%. Year to date, American Airlines Group registers a 62.8% gain.
VIDEO: S&P 500 Movers: LLY, AAL The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In early trading on Monday, shares of American Airlines Group topped the list of the day's best performing components of the S&P 500 index, trading up 9.9%. Two other components making moves today are Occidental Petroleum, trading down 3.7%, and United Airlines Holdings, trading up 6.1% on the day.
VIDEO: S&P 500 Movers: LLY, AAL The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In early trading on Monday, shares of American Airlines Group topped the list of the day's best performing components of the S&P 500 index, trading up 9.9%. And the worst performing S&P 500 component thus far on the day is Eli Lilly, trading down 7.8%.
4627.0
2021-03-15 00:00:00 UTC
3 Stocks to Avoid This Week
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https://www.nasdaq.com/articles/3-stocks-to-avoid-this-week-2021-03-15
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I took a look at three stocks to avoid last week, predicting that IMAX (NYSE: IMAX), Gap (NYSE: GPS), and Eventbrite (NYSE: EB) would have a bad week. Shares of IMAX moved 5% lower. The provider of super-sized theatrical experiences headed south despite a nearly 40% pop for the country's largest multiplex chain. Gap stock gapped higher, climbing 13% for the week. Sources told Bloomberg that the specialty retailer was considering unloading its China businesses. Three analysts also jacked up their price targets on the stock. Eventbrite rose 8% last week. Encouraging vaccination news is giving investors hope that a return to premium live events will happen sooner rather than later. The three stocks averaged a hearty 5.3% increase for the week, paced by Gap's strong move. The S&P 500 rose 2.6% for the week. I fell short this time. This week, I see Interface (NASDAQ: TILE), America Airlines (NASDAQ: AAL), and Gap as vulnerable investments in the near term. Here's why I think these are three stocks to avoid this week. Image source: Getty Images. 1. Interface We're getting to the point in 2021 where we're a year beyond the pandemic shutdown, and that's going to see a lot of surprising names on the list of stocks hitting 52-week highs. One of the biggest surprises on that list is Interface, largely because its business is actually getting worse instead of better as we claw our way out of the COVID-19 crisis. Interface is a leader in modular carpeting. What's modular carpeting? Well, it's basically carpet in tile form that can be quickly snapped together. It's a popular flooring solution for offices and other commercial settings. Interface also acquired a rubber flooring specialist a couple of years ago to give it some skin in the game of more recession-resistant businesses including hospitals and schools, but this is still largely a modular carpet company. Interface put out disappointing fourth-quarter results two weeks ago. It posted a sequential revenue decline when analysts were holding out for a marginal uptick. Guidance calls for an even larger 9% sequential decline for the current quarter. There is some seasonality to this business, but this doesn't seem like a company moving up as we're heading out of the shelter-in-place phase of the pandemic. 2. American Airlines Some air carriers are also hitting fresh 52-weeks highs, and American Airlines is one that just doesn't seem to deserve the ascent. I get why investors are turning to airlines as a play on post-pandemic living, but are we really going to be getting our passports stamped anytime soon? Is corporate travel ever going to be what it was before now that we've unlocked the convenience and cost savings of videoconferencing? Some genies don't go back into the bottle. American Airlines is also problematic within the airline space itself. CNBC's Carl Quintanilla tweeted over the weekend that 96% of the combined free cash flow of the major air carriers over the past decade went to share buybacks. American Airlines was the only one of the five largest carriers to not generate positive free cash flow. All hope isn't lost for American Airlines. It just leveraged its AAdvantage passenger loyalty program to line up $10 billion in additional financing. It's also making a smart codesharing deal with a rival turned partner to beef up its northeastern business. More U.S. passengers flew on Friday than any single day since mid-March of last year. However, with fuel prices moving higher and a global turnaround still a couple of years out, it's hard to see this new high sticking for long. 3. Gap I'm going to repeat my bearish call on Gap. I thought it was overvalued heading into last week, and I don't think it's any cheaper after last week's 12% pop. Revenue declined in its latest quarter on flat comps. It's definitely better than other apparel retailers are faring in this climate, but there are still problems at Banana Republic and its Gap chains. Revenue has declined in four of the past six fiscal years, and any sales blip with the inflow of stimulus checks will be short-lived. Gap may or may not find a buyer for its China business, but it's riding on the success of Athleta and Old Navy right now. This isn't a stock that should be trading at fresh 52-week highs. This isn't a stock that should've come through with a double-digit percentage gain last week. Mind the Gap. If you're looking for safe stocks, you aren't likely to find them in Interface, American Airlines, and Gap this week. 10 stocks we like better than Gap When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Gap wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of February 24, 2021 Rick Munarriz has no position in any of the stocks mentioned. The Motley Fool recommends Eventbrite, Inc. 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.
This week, I see Interface (NASDAQ: TILE), America Airlines (NASDAQ: AAL), and Gap as vulnerable investments in the near term. Encouraging vaccination news is giving investors hope that a return to premium live events will happen sooner rather than later. Interface also acquired a rubber flooring specialist a couple of years ago to give it some skin in the game of more recession-resistant businesses including hospitals and schools, but this is still largely a modular carpet company.
This week, I see Interface (NASDAQ: TILE), America Airlines (NASDAQ: AAL), and Gap as vulnerable investments in the near term. I took a look at three stocks to avoid last week, predicting that IMAX (NYSE: IMAX), Gap (NYSE: GPS), and Eventbrite (NYSE: EB) would have a bad week. American Airlines Some air carriers are also hitting fresh 52-weeks highs, and American Airlines is one that just doesn't seem to deserve the ascent.
This week, I see Interface (NASDAQ: TILE), America Airlines (NASDAQ: AAL), and Gap as vulnerable investments in the near term. I took a look at three stocks to avoid last week, predicting that IMAX (NYSE: IMAX), Gap (NYSE: GPS), and Eventbrite (NYSE: EB) would have a bad week. Gap stock gapped higher, climbing 13% for the week.
This week, I see Interface (NASDAQ: TILE), America Airlines (NASDAQ: AAL), and Gap as vulnerable investments in the near term. Gap stock gapped higher, climbing 13% for the week. Sources told Bloomberg that the specialty retailer was considering unloading its China businesses.
4628.0
2021-03-15 00:00:00 UTC
Airline Stocks: Why Shares of AAL, UAL, JBLU, DAL and LUV Are Gaining Altitude Today
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https://www.nasdaq.com/articles/airline-stocks%3A-why-shares-of-aal-ual-jblu-dal-and-luv-are-gaining-altitude-today-2021-03
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Airline stocks are flying high on Monday following some positive news from the Transportation Security Administration (TSA). Source: GagliardiPhotography / Shutterstock.com The good news from the TSA is that it’s starting to scan an increasing number of people before flights. That’s a sign that air travel is starting to pick up again, which is obviously good news for airline stocks. The TSA notes that it scanned more than 1 million people for four days in a row. That includes 1.2 million on Thursday, 1.4 million on Friday, 1.2 million on Saturday, and 1.3 million on Sunday. While these scans have yet to reach those in the previous two years, it’s still a strong sign that more people are taking to the air for travel. 7 Biotech Stocks With Catalysts That Go Far Beyond Covid-19 Vaccines Here’s how the update from the TSA is affecting select airline stocks today. American Airlines (NASDAQ:AAL) — AAL stock was up 6.9% as of Monday morning. United Airlines (NASDAQ:UAL) — UAL stock was heading 6.9% higher as well this morning. JetBlue Airways (NASDAQ:JBLU) — Shares of JBLU stock are trading up 4.3% as of this writing. Delta Air Lines (NYSE:DAL) — DAL stock got a 4.1% boost following the TSA news today. Southwest Airlines (NYSE:LUV) — LUV stock finishes up the list with shares mostly flat after strong gains in early morning trading. Investors interested in airline stocks would do well to track data from the TSA is the coming weeks. An increasing number of scans could be continued good news for those betting on airline stocks to make a comeback. On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The post Airline Stocks: Why Shares of AAL, UAL, JBLU, DAL and LUV Are Gaining Altitude 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.
The post Airline Stocks: Why Shares of AAL, UAL, JBLU, DAL and LUV Are Gaining Altitude Today appeared first on InvestorPlace. American Airlines (NASDAQ:AAL) — AAL stock was up 6.9% as of Monday morning. Source: GagliardiPhotography / Shutterstock.com The good news from the TSA is that it’s starting to scan an increasing number of people before flights.
American Airlines (NASDAQ:AAL) — AAL stock was up 6.9% as of Monday morning. The post Airline Stocks: Why Shares of AAL, UAL, JBLU, DAL and LUV Are Gaining Altitude Today appeared first on InvestorPlace. United Airlines (NASDAQ:UAL) — UAL stock was heading 6.9% higher as well this morning.
The post Airline Stocks: Why Shares of AAL, UAL, JBLU, DAL and LUV Are Gaining Altitude Today appeared first on InvestorPlace. American Airlines (NASDAQ:AAL) — AAL stock was up 6.9% as of Monday morning. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Airline stocks are flying high on Monday following some positive news from the Transportation Security Administration (TSA).
The post Airline Stocks: Why Shares of AAL, UAL, JBLU, DAL and LUV Are Gaining Altitude Today appeared first on InvestorPlace. American Airlines (NASDAQ:AAL) — AAL stock was up 6.9% as of Monday morning. Source: GagliardiPhotography / Shutterstock.com The good news from the TSA is that it’s starting to scan an increasing number of people before flights.
4629.0
2021-03-14 00:00:00 UTC
METALS-China data, supply concerns push copper prices to near two-week high
AAL
https://www.nasdaq.com/articles/metals-china-data-supply-concerns-push-copper-prices-to-near-two-week-high-2021-03-14
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March 15 (Reuters) - Copper prices rose on Monday to the highest levels in almost two weeks, building on last week's gains as top metals consumer China released upbeat economic activity data and as concerns over global supply resurfaced. China's industrial output grew 35.1% in January-February from a year ago, beating a 30% surge expected in a Reuters poll and faster than the 7.3% gain in December. [nB9N2K8028] Three-month copper on the London Metal Exchange was up 1.1% at $9,185.50 a tonne, as of 0218 GMT, after earlier rising to $9,199.50, the strongest since March 3. The most-traded May copper contract on the Shanghai Futures Exchange climbed 1.5% to 68,070 yuan ($10,472.79) a tonne, after earlier hitting 68,230 yuan, also the highest since March 3. FUNDAMENTALS * Commodities trader Trafigura sees a significant supply deficit in the copper market and a prolonged high-price cycle. [nL1N2LA1D6] * Miners Vale SA , Anglo American PLc and Chile's Codelco expect demand for copper to strengthen in coming years on growing demand for environmentally friendly cars. [nL1N2LA1WL] [nL1N2LA1RT] * For the top stories in metals and other news, click [TOP/MTL] or [MET/L] MARKETS NEWS * Global stock prices were off to a solid start while U.S. bond yields hovered near a 13-month peak on Monday as investors bet U.S. economic growth will accelerate after the passing of a massive stimulus package. [MKTS/GLOB] DATA/EVENTS (GMT) 0200 China Urban Investment (YTD) YY Feb 0200 China Industrial Output YY Feb 0200 China Retail Sales YY Feb 1100 EU Reserve Assets Total Feb 1400 Euro zone finance ministers meet PRICES Three month LME copper Most active ShFE copper Three month LME aluminium Most active ShFE aluminium Three month LME zinc Most active ShFE zinc Three month LME lead Most active ShFE lead Three month LME nickel Most active ShFE nickel Three month LME tin Most active ShFE tin (Reporting by Enrico Dela Cruz in Manila, Editing by Sherry Jacob-Phillips) ((enrico.delacruz@tr.com)) (( For related news and prices, click on the codes in brackets: LME price overview COMEX copper futures <0#HG:> All metals news [MTL] All commodities news [C] Foreign exchange rates SPEED GUIDES )) Keywords: GLOBAL METALS/ The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
China's industrial output grew 35.1% in January-February from a year ago, beating a 30% surge expected in a Reuters poll and faster than the 7.3% gain in December. * Commodities trader Trafigura sees a significant supply deficit in the copper market and a prolonged high-price cycle. * Global stock prices were off to a solid start while U.S. bond yields hovered near a 13-month peak on Monday as investors bet U.S. economic growth will accelerate after the passing of a massive stimulus package.
0200 China Urban Investment (YTD) YY Feb 0200 China Industrial Output YY Feb 0200 China Retail Sales YY Feb 1100 EU Reserve Assets Total Feb 1400 Euro zone finance ministers meet Three month LME copper Most active ShFE copper Three month LME aluminium Most active ShFE aluminium Three month LME zinc Most active ShFE zinc Three month LME lead Most active ShFE lead Three month LME nickel Most active ShFE nickel Three month LME tin Most active ShFE tin (( For related news and prices, click on the codes in brackets: LME price overview COMEX copper futures <0#HG:> All metals news [MTL] All commodities news [C] Foreign exchange rates SPEED GUIDES ))
March 15 (Reuters) - Copper prices rose on Monday to the highest levels in almost two weeks, building on last week's gains as top metals consumer China released upbeat economic activity data and as concerns over global supply resurfaced. Three month LME copper Most active ShFE copper Three month LME aluminium Most active ShFE aluminium Three month LME zinc Most active ShFE zinc Three month LME lead Most active ShFE lead Three month LME nickel Most active ShFE nickel Three month LME tin Most active ShFE tin (( For related news and prices, click on the codes in brackets: LME price overview COMEX copper futures <0#HG:> All metals news [MTL] All commodities news [C] Foreign exchange rates SPEED GUIDES ))
March 15 (Reuters) - Copper prices rose on Monday to the highest levels in almost two weeks, building on last week's gains as top metals consumer China released upbeat economic activity data and as concerns over global supply resurfaced. China's industrial output grew 35.1% in January-February from a year ago, beating a 30% surge expected in a Reuters poll and faster than the 7.3% gain in December. [nL1N2LA1WL] [nL1N2LA1RT] * For the top stories in metals and other news, click [TOP/MTL] or [MET/L]
4630.0
2021-03-13 00:00:00 UTC
How to Think About Lofty Price-to-Sales Ratios
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https://www.nasdaq.com/articles/how-to-think-about-lofty-price-to-sales-ratios-2021-03-13
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Often, the go-to metric for investors to judge how "expensive" a stock is compared to its peers is the price-to-earnings ratio. But what if a company is investing all of its profits into growing the business? For growth investors, the price-to-sales ratio is a good way to get an idea of the value of a stock that doesn't have a positive bottom line. On a Fool Live episode recorded on March 3, Fool contributors Brian Withers and Matt Frankel discuss how to think about stocks that have high-double-digit price-to-sales ratios. 10 stocks we like better than Twilio When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Twilio wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of February 24, 2021 Matthew Frankel: [A viewer asks...] "What is an average or normal price-to-sales ratio? Because I often quote a price-to-sales ratio with these growth companies just because they don't have earnings to talk about, so it's a good metric to look at." The answer is that it depends. It depends on the industry, it depends on the growth rate. If you look at some value stocks like General Motors, for example, trades for less than one times sales. That's a value stock, it's because it's a relatively low-margin business, it's a value stock, not a growth stock. On the other hand, there are some growth stocks that trade for over 100 times sales and it's completely justified. The way I like to use the price-to-sales ratio is in combination with the company's growth rate. The higher the company's growth rate, the more of a price-to-sales ratio it can justify. I like to look at a few different growth stocks, just look at each one's growth rate, price-to-sales and see which one's relatively cheap or expensive. That's one of the components of when I evaluate growth stocks. This is coming from the Fool's resident value investor. Brian Withers: Yeah, there you go. Well, what's interesting is, and I'm glad we picked up this question, the S&P price-to-sales ratio is about 2.8. So [laughs] when we're talking stuff in the double-digits, in the 20s and 30s, just recognize that's a significant premium to what the overall market is. Really, it doesn't make sense to put an airline like American Airlines, and I don't know what their price-to-sales ratio is. I suspect it's very low, versus Twilio (NYSE: TWLO), which doesn't have any capital-intensive business the airline has. It doesn't hire mechanics, and get spare parts, and buy all these airplanes, and maintain them over time. They release software and immediately, that software goes all over the world, and they have really high margins which allows them to continue to invest in their business. Some of these SaaS companies, their price-to-sales ratios are going to be at certainly premiums to the market, where my rule of thumb is, if you're growing 40 percent year-over-year annually, I would hope that your price-to-sales ratio is less than 40. That's just my rule of thumb. That's probably an expensive stock, but as you're looking at different stocks, make sure you compare it to their growth rates. Certainly, look at their cash burn as well. All the companies that we talked about here have [a] pretty solid balance sheet. But you don't want to have them running out of cash in the next 12 or 18 months. That's not a good situation. Brian Withers owns shares of Twilio. Matthew Frankel, CFP owns shares of General Motors. The Motley Fool owns shares of and recommends Twilio. 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.
Often, the go-to metric for investors to judge how "expensive" a stock is compared to its peers is the price-to-earnings ratio. For growth investors, the price-to-sales ratio is a good way to get an idea of the value of a stock that doesn't have a positive bottom line. Because I often quote a price-to-sales ratio with these growth companies just because they don't have earnings to talk about, so it's a good metric to look at."
For growth investors, the price-to-sales ratio is a good way to get an idea of the value of a stock that doesn't have a positive bottom line. Brian Withers owns shares of Twilio. Matthew Frankel, CFP owns shares of General Motors.
For growth investors, the price-to-sales ratio is a good way to get an idea of the value of a stock that doesn't have a positive bottom line. On a Fool Live episode recorded on March 3, Fool contributors Brian Withers and Matt Frankel discuss how to think about stocks that have high-double-digit price-to-sales ratios. That's a value stock, it's because it's a relatively low-margin business, it's a value stock, not a growth stock.
Because I often quote a price-to-sales ratio with these growth companies just because they don't have earnings to talk about, so it's a good metric to look at." That's a value stock, it's because it's a relatively low-margin business, it's a value stock, not a growth stock. Some of these SaaS companies, their price-to-sales ratios are going to be at certainly premiums to the market, where my rule of thumb is, if you're growing 40 percent year-over-year annually, I would hope that your price-to-sales ratio is less than 40.
4631.0
2021-03-13 00:00:00 UTC
American Airlines Secures $10 Billion Financing Package
AAL
https://www.nasdaq.com/articles/american-airlines-secures-%2410-billion-financing-package-2021-03-13
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The COVID-19 pandemic has dealt a huge blow to the U.S. airline industry over the past year. Fortunately, most U.S. airlines entered 2020 with solid balance sheets, thanks to strong industry profitability over the previous decade. Among major airlines, American Airlines (NASDAQ: AAL) was an exception to this rule. The airline giant squandered billions of dollars on share buybacks in recent years, even as it spent heavily to upgrade its fleet. That put it in a weak position compared to peers like Delta Air Lines (NYSE: DAL). However, American just bought itself time by lining up $10 billion of new financing. Facing a potential cash crunch Like its peers, American Airlines borrowed lots of money during 2020 to cover its cash burn. By year-end, it had $32.6 billion of debt and finance leases on its balance sheet: up from $24.3 billion a year earlier. American entered 2021 with $6.9 billion of unrestricted cash and investments, plus $7.4 billion of additional borrowing capacity (mainly from a government loan commitment). Having $14.3 billion of liquidity might seem like a lot. However, American is still burning lots of cash. It expects average daily cash burn of $30 million in Q1 -- equivalent to $2.7 billion over the course of the quarter. Image source: American Airlines. Of course, cash burn should improve rapidly over the next few quarters as air travel demand returns. That said, the company has $21.7 billion of debt maturing between 2021 and 2025. It won't generate nearly enough free cash flow to repay all of those maturities. And while American Airlines should be able to refinance much of that debt, it might not be able to do so on favorable terms -- particularly for debt that is unsecured or backed by subpar collateral. Contrast this with Delta's financial position. Delta Air Lines ended 2020 with $14.1 billion of unrestricted cash and investments on its balance sheet. It also had $2.6 billion of borrowing capacity on its revolving credit lines. Furthermore, Delta has been burning less cash than American, and it has only $15.7 billion of debt maturing over the next five years. Tapping into the loyalty program To address its near-term cash needs, American Airlines decided to follow its biggest rivals by carving out its loyalty program as a new subsidiary and using it as collateral. The desirability of this collateral enabled it to score a rating just two notches below investment-grade status from Moody's. That was an impressive achievement, considering the weak state of the carrier's balance sheet. American Airlines ultimately raised an industry-record $10 billion backed by the AAdvantage program, up from its initial plan to raise $7.5 billion. The weighted average interest rate came to 5.575%, modestly higher than the 4.75% blended rate that Delta achieved when it issued $9 billion of debt backed by its loyalty program last September. This $10 billion deal increases American's liquidity by $2.5 billion, net of the termination of its federal secured loan participation. This gives the company more breathing room to cover its near-term cash burn and debt maturities, reducing the likelihood of a cash crunch. Image source: American Airlines. Fundamental problems remain The new financing package buys time for American Airlines. (It also allows the airline to avoid unfavorable terms associated with the federal loans available under the CARES Act.) However, that doesn't mean the company is out of the woods. First, American Airlines recorded mediocre adjusted pre-tax margins of 6.3% in both 2018 and 2019. Margins could be even worse going forward. First, net interest expense will be approximately $2 billion a year following this week's debt issuance -- up from $1 billion in 2019. That alone would reduce future pre-tax margins by more than 2 percentage points. Lower business travel demand and a tougher competitive environment could also weigh on profitability for the foreseeable future, offsetting the benefit of cost cuts. Second, American had over $40 billion of net debt (including pension and lease liabilities) at the end of 2020, far too much relative to its earnings power. Its new debt package reduces the risk of near-term liquidity problems but doesn't address the underlying problem of excessive leverage. To be sure, lining up additional long-term financing is an important step in American Airlines' efforts to recover from the COVID-19 pandemic. However, with American's market cap having already surpassed its pre-pandemic level, this may be a good opportunity for shareholders to head for the exits. 10 stocks we like better than American Airlines Group When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and American Airlines Group wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of February 24, 2021 Adam Levine-Weinberg owns shares of Delta Air Lines. The Motley Fool owns shares of and recommends Moodys. 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.
Among major airlines, American Airlines (NASDAQ: AAL) was an exception to this rule. The airline giant squandered billions of dollars on share buybacks in recent years, even as it spent heavily to upgrade its fleet. Lower business travel demand and a tougher competitive environment could also weigh on profitability for the foreseeable future, offsetting the benefit of cost cuts.
Among major airlines, American Airlines (NASDAQ: AAL) was an exception to this rule. American entered 2021 with $6.9 billion of unrestricted cash and investments, plus $7.4 billion of additional borrowing capacity (mainly from a government loan commitment). Delta Air Lines ended 2020 with $14.1 billion of unrestricted cash and investments on its balance sheet.
Among major airlines, American Airlines (NASDAQ: AAL) was an exception to this rule. American entered 2021 with $6.9 billion of unrestricted cash and investments, plus $7.4 billion of additional borrowing capacity (mainly from a government loan commitment). Furthermore, Delta has been burning less cash than American, and it has only $15.7 billion of debt maturing over the next five years.
Among major airlines, American Airlines (NASDAQ: AAL) was an exception to this rule. Delta Air Lines ended 2020 with $14.1 billion of unrestricted cash and investments on its balance sheet. Furthermore, Delta has been burning less cash than American, and it has only $15.7 billion of debt maturing over the next five years.
4632.0
2021-03-12 00:00:00 UTC
Why Airline Stocks Are Flying High Today
AAL
https://www.nasdaq.com/articles/why-airline-stocks-are-flying-high-today-2021-03-12
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What happened Seemingly every day there are fresh signs that the airline business is returning to normal. That, plus a new round of stimulus that should both assist the businesses and hopefully create additional demand for travel, has the stocks on the move higher on Friday. Leading the way is Spirit Airlines (NYSE: SAVE), up as much as 8%, with American Airlines Group (NASDAQ: AAL) and JetBlue Airways (NASDAQ: JBLU) each up as much as 6%. So what Airlines were among the big losers of 2020, with the pandemic wiping out demand for travel and sending the companies deep into the red. But the U.S. industry survived, in part thanks to billions in government assistance. With a vaccine rollout proceeding as scheduled, investors are growing more optimistic demand will recover by the summer travel season. Airlines are doing their best to signal they believe it as well. In the last 24 hours, Spirit and JetBlue both announced added flights to sunny tourism-focused destinations, looking to capitalize on an expected summer surge. Image source: Getty Images. The airlines are also getting additional support from the government to make sure they are ready for the summer. The $1.9 trillion stimulus bill, signed into law Thursday, includes additional payroll support for the airlines. That means they can afford to keep staff on hand in anticipation of a rebound and avoid the costly retraining process that comes with furloughs. The stimulus is also expected to put thousands of dollars into the pockets of Americans. If all goes to plan, some of that is likely to go toward airfare. Now what The airlines are back, but investors need to be cautious from here. A full recovery, including traditionally higher-margin business travel and international travel, is likely to take years to materialize. And the stocks arguably have gotten ahead of themselves in recent weeks. Factoring in debt, many of the airlines are actually worth more now than they were in early 2020. Spirit is the likely near-term winner of this group, with a route network designed to cater to leisure travelers and a cost structure that allows it to profitably undercut most of its rivals. JetBlue does best when travelers are willing to pay up for its well-regarded Mint premium service, but the airline has a brand consumers love and a lot of flights to sunny destinations. American, meanwhile, has made the most impressive comeback of all the major airlines. But that is in part because it was viewed this time last year as the one most likely to get in trouble as the pandemic worsened. American is a well-run airline with the wherewithal to survive, but of these three companies, it is the one likely to still be digging out from under the pandemic even after others are flying high. 10 stocks we like better than JetBlue Airways When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and JetBlue Airways wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of February 24, 2021 Lou Whiteman owns shares of Spirit Airlines. The Motley Fool owns shares of Spirit Airlines. The Motley Fool recommends JetBlue Airways. 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.
Leading the way is Spirit Airlines (NYSE: SAVE), up as much as 8%, with American Airlines Group (NASDAQ: AAL) and JetBlue Airways (NASDAQ: JBLU) each up as much as 6%. In the last 24 hours, Spirit and JetBlue both announced added flights to sunny tourism-focused destinations, looking to capitalize on an expected summer surge. Spirit is the likely near-term winner of this group, with a route network designed to cater to leisure travelers and a cost structure that allows it to profitably undercut most of its rivals.
Leading the way is Spirit Airlines (NYSE: SAVE), up as much as 8%, with American Airlines Group (NASDAQ: AAL) and JetBlue Airways (NASDAQ: JBLU) each up as much as 6%. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. The Motley Fool owns shares of Spirit Airlines.
Leading the way is Spirit Airlines (NYSE: SAVE), up as much as 8%, with American Airlines Group (NASDAQ: AAL) and JetBlue Airways (NASDAQ: JBLU) each up as much as 6%. JetBlue does best when travelers are willing to pay up for its well-regarded Mint premium service, but the airline has a brand consumers love and a lot of flights to sunny destinations. See the 10 stocks *Stock Advisor returns as of February 24, 2021 Lou Whiteman owns shares of Spirit Airlines.
Leading the way is Spirit Airlines (NYSE: SAVE), up as much as 8%, with American Airlines Group (NASDAQ: AAL) and JetBlue Airways (NASDAQ: JBLU) each up as much as 6%. That, plus a new round of stimulus that should both assist the businesses and hopefully create additional demand for travel, has the stocks on the move higher on Friday. But the U.S. industry survived, in part thanks to billions in government assistance.
4633.0
2021-03-12 00:00:00 UTC
Here’s Why AAL Stock Is a Good Pandemic Recovery Play
AAL
https://www.nasdaq.com/articles/heres-why-aal-stock-is-a-good-pandemic-recovery-play-2021-03-12
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Airlines didn’t do much flying last year, but carriers like American Airlines (NASDAQ:AAL) still show signs of a strong rebound. According to many analysts, this is the perfect time to add some airline names like AAL stock to your portfolio. AAL) airplane waiting on the tarmac. Represents airline stocks." width="300" height="169"> Source: GagliardiPhotography / Shutterstock.com Why? With the worst of the pandemic behind us, the sector is headed for better days. Although the timeline for a complete recovery is unclear, the vaccine rollout will slowly but surely kickstart a travel rebound. Keeping with this optimism, AAL stock is up 48% year-to-date (YTD), as investors place their bets on this recovery play. The future of the travel industry is largely speculative. However, if you’re looking to buy and hold a travel stock, American Airlines is a great investment for the long haul. AAL Stock Will Take Off Soon Following a year of no travel, there will be a lot of pent-up demand to hop on a flight again. However, there is also still a lot of uncertainty on when this will happen. Vasu Raja, Chief Revenue Officer at American Airlines, notes “It’s a matter of letting the vaccine distribution play out.” However, with delays in distribution of the vaccine, it could take a couple of months before we reach herd immunity. And even after we achieve this, it will take longer for travel to reach pre-pandemic levels. That said, though, airlines and analysts remain optimistic that a travel rebound is imminent. According to Raja and AAL, searches for airline tickets on its website grow every day. And while those searches don’t necessarily convert (meaning someone buys a ticket), it does at least hint at the pent-up travel demand. Once people feel that it’s safe to travel again, airlines should see a huge spike in ticket purchases. 7 OTC Stocks That Could Still Run with the Big Boys As this recovery momentum for airlines and AAL stock continues to build, many analysts have expressed enthusiasm toward the industry. According to Raymond James analyst Savanthi Syth, there will be greater demand for leisure travel in the coming months. This demand is likely to pick up in the summer. On its part, AAL is adding new destinations to its itinerary to prepare for a summer influx. Until this demand comes into fruition, however, airlines are actively working on keeping their cash balances intact. Last quarter, AAL reduced its cash burn rate to $30 million to meet its expenses until it’s able to turn a profit once again. American Airlines Pays Its Debts Frequent-flier programs (FFPs) have proven to be sustainable sources of cash flows for major airline carriers. When it comes to American Airlines, it’s leveraging its program to pay down debts this year. More specifically, the company plans to raise $7.5 billion using its FFP as collateral. Some $5 billion of this will be issued in notes and $2.5 billion will be a term loan backed by its rewards program, AAdvantage. Half of the notes are due in 2026 and the other half in 2029. The money raised from this funding will be used to pay back a $7.5 billion dollar loan that the airline borrowed from the government under the CARES Act. This was a term loan which the company received in addition to federal aid to cover short-term expenses. AAL says it has used $550 million from the loan so far. Of course, travel was among the hardest-hit sectors during the pandemic and American Airlines, like many of its peers, is facing a major liquidity crisis. As a result, the airline is actively working to improve its cash position while it awaits the travel rebound. All in all, the sector is not in a great position right now. But the airline’s decision to actively pay down its dues is a good sign. AAL stock went up slightly following the announcement on Mar. 8. The Bottom Line Right now, there is good reason to side with market sentiment and believe that the worst is behind us. However, it is also worth noting that there will be some volatility in airline stocks in the coming months. The vaccine distribution is underway but there are still production delays and supply-chain issues that the health authorities need to overcome. A potential delay in achieving herd immunity will also impact the return of travel. Looking at the bigger picture, though, a travel rebound is imminent and there is definitely pent-up demand. For investors who are willing to hold and wait, AAL is a great opportunity to buy on the dip. So, consider placing your bets on AAL stock today. On the date of publication, Divya Premkumar did not have (either directly or indirectly) any positions in any of the securities mentioned in this article. Divya Premkumar has a finance degree from the University of Houston, Texas. She is a financial writer and analyst who has written stories on various financial topics from investing to personal finance. Divya has been writing for Investor Place since 2020. The post Here’s Why AAL Stock Is a Good Pandemic Recovery Play 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.
Keeping with this optimism, AAL stock is up 48% year-to-date (YTD), as investors place their bets on this recovery play. Last quarter, AAL reduced its cash burn rate to $30 million to meet its expenses until it’s able to turn a profit once again. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Airlines didn’t do much flying last year, but carriers like American Airlines (NASDAQ:AAL) still show signs of a strong rebound.
InvestorPlace - Stock Market News, Stock Advice & Trading Tips Airlines didn’t do much flying last year, but carriers like American Airlines (NASDAQ:AAL) still show signs of a strong rebound. The post Here’s Why AAL Stock Is a Good Pandemic Recovery Play appeared first on InvestorPlace. According to many analysts, this is the perfect time to add some airline names like AAL stock to your portfolio.
InvestorPlace - Stock Market News, Stock Advice & Trading Tips Airlines didn’t do much flying last year, but carriers like American Airlines (NASDAQ:AAL) still show signs of a strong rebound. 7 OTC Stocks That Could Still Run with the Big Boys As this recovery momentum for airlines and AAL stock continues to build, many analysts have expressed enthusiasm toward the industry. According to many analysts, this is the perfect time to add some airline names like AAL stock to your portfolio.
AAL Stock Will Take Off Soon Following a year of no travel, there will be a lot of pent-up demand to hop on a flight again. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Airlines didn’t do much flying last year, but carriers like American Airlines (NASDAQ:AAL) still show signs of a strong rebound. According to many analysts, this is the perfect time to add some airline names like AAL stock to your portfolio.
4634.0
2021-03-12 00:00:00 UTC
Noteworthy Friday Option Activity: AAL, EMN, LEG
AAL
https://www.nasdaq.com/articles/noteworthy-friday-option-activity%3A-aal-emn-leg-2021-03-12
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Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in American Airlines Group Inc (Symbol: AAL), where a total of 323,294 contracts have traded so far, representing approximately 32.3 million underlying shares. That amounts to about 65.9% of AAL's average daily trading volume over the past month of 49.0 million shares. Especially high volume was seen for the $23 strike call option expiring March 12, 2021, with 33,384 contracts trading so far today, representing approximately 3.3 million underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $23 strike highlighted in orange: Eastman Chemical Co (Symbol: EMN) options are showing a volume of 5,187 contracts thus far today. That number of contracts represents approximately 518,700 underlying shares, working out to a sizeable 62.5% of EMN's average daily trading volume over the past month, of 829,715 shares. Especially high volume was seen for the $110 strike call option expiring March 19, 2021, with 580 contracts trading so far today, representing approximately 58,000 underlying shares of EMN. Below is a chart showing EMN's trailing twelve month trading history, with the $110 strike highlighted in orange: And Leggett & Platt, Inc. (Symbol: LEG) options are showing a volume of 5,154 contracts thus far today. That number of contracts represents approximately 515,400 underlying shares, working out to a sizeable 53.9% of LEG's average daily trading volume over the past month, of 955,465 shares. Especially high volume was seen for the $40 strike call option expiring March 19, 2021, with 3,801 contracts trading so far today, representing approximately 380,100 underlying shares of LEG. Below is a chart showing LEG's trailing twelve month trading history, with the $40 strike highlighted in orange: For the various different available expirations for AAL options, EMN options, or LEG 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.
Especially high volume was seen for the $23 strike call option expiring March 12, 2021, with 33,384 contracts trading so far today, representing approximately 3.3 million underlying shares of AAL. Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in American Airlines Group Inc (Symbol: AAL), where a total of 323,294 contracts have traded so far, representing approximately 32.3 million underlying shares. That amounts to about 65.9% of AAL's average daily trading volume over the past month of 49.0 million shares.
Especially high volume was seen for the $23 strike call option expiring March 12, 2021, with 33,384 contracts trading so far today, representing approximately 3.3 million underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $23 strike highlighted in orange: Eastman Chemical Co (Symbol: EMN) options are showing a volume of 5,187 contracts thus far today. Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in American Airlines Group Inc (Symbol: AAL), where a total of 323,294 contracts have traded so far, representing approximately 32.3 million underlying shares.
Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in American Airlines Group Inc (Symbol: AAL), where a total of 323,294 contracts have traded so far, representing approximately 32.3 million underlying shares. Especially high volume was seen for the $23 strike call option expiring March 12, 2021, with 33,384 contracts trading so far today, representing approximately 3.3 million underlying shares of AAL. That amounts to about 65.9% of AAL's average daily trading volume over the past month of 49.0 million shares.
Especially high volume was seen for the $23 strike call option expiring March 12, 2021, with 33,384 contracts trading so far today, representing approximately 3.3 million underlying shares of AAL. Below is a chart showing LEG's trailing twelve month trading history, with the $40 strike highlighted in orange: For the various different available expirations for AAL options, EMN options, or LEG options, visit StockOptionsChannel.com. Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in American Airlines Group Inc (Symbol: AAL), where a total of 323,294 contracts have traded so far, representing approximately 32.3 million underlying shares.
4635.0
2021-03-12 00:00:00 UTC
Vale, Anglo American underline ESG issues as copper demand soars
AAL
https://www.nasdaq.com/articles/vale-anglo-american-underline-esg-issues-as-copper-demand-soars-2021-03-12
nan
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By Marta Nogueira RIO DE JANEIRO, March 12 (Reuters) - Global miners such as Brazil's Vale, Anglo American PLc and Chile's Codelco said they expect demand for copper to strengthen in coming years on growing demand for environmentally friendly cars, while the mining industry reckons with questions about its own sustainability. Mining executives said during a webinar about copper on Friday that higher demand for the metal was an opportunity for the industry to improve its image by adopting more socially-conscious practices. "The society will not tolerate the way we operated before," said Ruben Fernandes, base metals CEO for Anglo American PLc, adding the industry now had an opportunity to build alliances with governments and populations to improve its image. Two Vale SA dam bursts in a four-year period killed hundreds of people and caused extensive environmental damage in Brazil's Minas Gerais state, drawing attention to issues of safety and risk. Elsewhere, the industry is grappling with pollution, deforestation and labor disputes. Fernandes said it remained unclear whether copper was entering a new "super cycle" as the metal reached the highest prices in almost a decade in London this week. Mark Travers, Vale's base metals director, said the company's copper projects had synergies with its iron ore operations, with shared infrastructure. Travers said the higher demand for copper was an "opportunity to do the right thing and work with local communities", adopting sustainable practices. Vale CEO Eduardo Bartolomeo recently said the company had a bullish outlook for the metal and intended to accelerate copper projects in the Carajas region, in the state of Para, where Vale has its largest iron ore mines. Later, in a separate session, Juan Benevides, chairman of Chile's Codelco, the world's largest copper producer, said he expected demand for copper to keep rising over the next three to four years. (Reporting by Marta Nogueira in Rio de Janeiro. Editing by Mark Potter) ((tatiana.bautzer@tr.com; Tel: +55-11-5644-7756; Mob: +55-119-4210-4173; Reuters Messaging: tatiana.bautzer.thomsonreuters.com@reuters.net)) Keywords: MINING COPPER/ESG The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
"The society will not tolerate the way we operated before," said Ruben Fernandes, base metals CEO for Anglo American PLc, adding the industry now had an opportunity to build alliances with governments and populations to improve its image. Two Vale SA dam bursts in a four-year period killed hundreds of people and caused extensive environmental damage in Brazil's Minas Gerais state, drawing attention to issues of safety and risk. Mark Travers, Vale's base metals director, said the company's copper projects had synergies with its iron ore operations, with shared infrastructure.
By Marta Nogueira RIO DE JANEIRO, March 12 (Reuters) - Global miners such as Brazil's Vale, Anglo American PLc and Chile's Codelco said they expect demand for copper to strengthen in coming years on growing demand for environmentally friendly cars, while the mining industry reckons with questions about its own sustainability. "The society will not tolerate the way we operated before," said Ruben Fernandes, base metals CEO for Anglo American PLc, adding the industry now had an opportunity to build alliances with governments and populations to improve its image. Mark Travers, Vale's base metals director, said the company's copper projects had synergies with its iron ore operations, with shared infrastructure.
By Marta Nogueira RIO DE JANEIRO, March 12 (Reuters) - Global miners such as Brazil's Vale, Anglo American PLc and Chile's Codelco said they expect demand for copper to strengthen in coming years on growing demand for environmentally friendly cars, while the mining industry reckons with questions about its own sustainability. Mining executives said during a webinar about copper on Friday that higher demand for the metal was an opportunity for the industry to improve its image by adopting more socially-conscious practices. Vale CEO Eduardo Bartolomeo recently said the company had a bullish outlook for the metal and intended to accelerate copper projects in the Carajas region, in the state of Para, where Vale has its largest iron ore mines.
By Marta Nogueira RIO DE JANEIRO, March 12 (Reuters) - Global miners such as Brazil's Vale, Anglo American PLc and Chile's Codelco said they expect demand for copper to strengthen in coming years on growing demand for environmentally friendly cars, while the mining industry reckons with questions about its own sustainability. Mining executives said during a webinar about copper on Friday that higher demand for the metal was an opportunity for the industry to improve its image by adopting more socially-conscious practices. "The society will not tolerate the way we operated before," said Ruben Fernandes, base metals CEO for Anglo American PLc, adding the industry now had an opportunity to build alliances with governments and populations to improve its image.
4636.0
2021-03-11 00:00:00 UTC
Interesting AAL Put And Call Options For April 30th
AAL
https://www.nasdaq.com/articles/interesting-aal-put-and-call-options-for-april-30th-2021-03-11
nan
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Investors in American Airlines Group Inc (Symbol: AAL) saw new options become available today, for the April 30th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new April 30th contracts and identified one put and one call contract of particular interest. The put contract at the $22.00 strike price has a current bid of $1.70. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $22.00, but will also collect the premium, putting the cost basis of the shares at $20.30 (before broker commissions). To an investor already interested in purchasing shares of AAL, that could represent an attractive alternative to paying $22.24/share today. Because the $22.00 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 100%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 7.73% return on the cash commitment, or 56.46% 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 $22.00 strike is located relative to that history: Turning to the calls side of the option chain, the call contract at the $23.00 strike price has a current bid of $1.27. If an investor was to purchase shares of AAL stock at the current price level of $22.24/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $23.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 9.13% if the stock gets called away at the April 30th 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 $23.00 strike highlighted in red: Considering the fact that the $23.00 strike represents an approximate 3% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 5.71% boost of extra return to the investor, or 41.72% annualized, which we refer to as the YieldBoost. Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 252 trading day closing values as well as today's price of $22.24) to be 97%. 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.
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 $23.00 strike highlighted in red: Considering the fact that the $23.00 strike represents an approximate 3% 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 April 30th expiration.
Below is a chart showing AAL's trailing twelve month trading history, with the $23.00 strike highlighted in red: Considering the fact that the $23.00 strike represents an approximate 3% 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 April 30th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new April 30th contracts and identified one put and one call contract of particular interest.
Below is a chart showing AAL's trailing twelve month trading history, with the $23.00 strike highlighted in red: Considering the fact that the $23.00 strike represents an approximate 3% 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 April 30th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new April 30th contracts and identified one put and one call contract of particular interest.
Below is a chart showing AAL's trailing twelve month trading history, with the $23.00 strike highlighted in red: Considering the fact that the $23.00 strike represents an approximate 3% 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 April 30th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new April 30th contracts and identified one put and one call contract of particular interest.
4637.0
2021-03-11 00:00:00 UTC
The American Airlines Stock Rebound Is Far From Over
AAL
https://www.nasdaq.com/articles/the-american-airlines-stock-rebound-is-far-from-over-2021-03-11
nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips The rollout of the Covid-19 vaccine in the United States and worldwide is giving the airline industry hope. American Airlines Group (NASDAQ:AAL) stock outperformed the major indexes for the first two months of the year. Source: GagliardiPhotography / Shutterstock.com As the vaccine administration reaches the majority of the population, AAL stock will continue climbing. Markets may ignore the weak results as the rebound potential from higher airline traffic boosts American Airlines. Losses Will Not Cool AAL Stock In the fourth quarter, American Airlines posted GAAP earnings per share loss of $3.81. Revenue plunged by 64.4% year-on-year to $4.03 billion. The $18.36 EPS loss should frighten investors away. Fortunately, the stock market is forward-looking and is pricing recovery in the industry. AAL has several positive developments. 7 Stocks to Buy That Are Cheering for March Madness The airline ended the fiscal year with around $14.3 billion in liquidity. This will top $15 billion in the first quarter of this year. This will equip the company with the financial flexibility to continue operating despite losing money. Should the credit markets seize up, AAL will face no financial distress. In recent weeks, the U.S. Treasury yields rose sharply. This signals a tightening debt market and an eventual rate hike. AAL raised more than $13 billion in 2020. After issuing debt at lower rates, the airline may focus on building the business post-Covid. Manageable Costs Cost actions will increase AAL’s efficiency. Chairman and Chief Executive Officer Doug Parker said that it may take out $1.3 billion in non-operating costs. Though forecasting for 2023 depends on future demand, the lower cost for operations will speed up its return to profitability. The CEO did not commit to any demand level forecasts in the next two years. Readers may apply the cost cut in a discounted cash flow EBITDA exit model. This uses an EBITDA exit multiple to calculate terminal value after five years. Metrics Range Conclusion Discount rate 8% – 7% 7.5% Terminal EBITDA multiple 5x – 10x 8x Fair value $5.17 – $41.47 $26.26 Model from finbox Investors may apply a generous 8x multiple and come up with a very wide fair value. In the most optimistic scenario, AAL posts a strong revenue rebound for the next four years. It may earn an EBITDA as a percentage of revenue in the mid-single digits. Financial modelers may adjust for a higher earnings percentage after American implements cost-control measures. It will need passenger traffic growing sharply every year to justify a fair value of around $26. Source: Data from Stock Rover As you can see in the chart, analysts are highly bearish on AAL. The stock has the most “strong sells” that outweigh the “buy” and “hold” calls. Based on its future cash flow, simplywall.st forecasts a $44.34 fair value for AAL shares. Still, this bullish view is clouded by earnings losses. So, the site cannot tabulate a price-earnings or a P/E to growth ratio to compare its valuation to peers. Opportunity Chief Financial Officer Derek Kerr broke down the $1.3 billion in cost cuts in two buckets. It will save $500 million from cuts to management. Another $700 million in savings will come from other labor. Other items like facilities consolidations, benefits and fuel efficiencies will add positively to efficiency. By adjusting for a lower flight volume scenario, American Airlines will survive. Conversely, should demand rise faster than expected in the next three years, AAL may quickly scale up operations. Capital expenditure requirements over the next two years are minimal. Plus, the government loan will sustain AAL’s liquidity. It only needs to concern itself with the refinancing terms next. Your Takeaway AAL is priced to perfection, with more upside to go. Markets are hunting for growth plays and look at the airline as the next turnaround. The vaccine offers strong hope of a work-from-home and stay-at-home order ending everywhere. When that happens, airline stocks will benefit quickly. After the rally, markets are betting on a bigger-than-expected recovery. Disclosure: On the date of publication, Chris Lau did not have (either directly or indirectly) any positions in the securities mentioned in this article. The post The American Airlines Stock Rebound Is Far From Over appeared first on InvestorPlace. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
American Airlines Group (NASDAQ:AAL) stock outperformed the major indexes for the first two months of the year. Source: GagliardiPhotography / Shutterstock.com As the vaccine administration reaches the majority of the population, AAL stock will continue climbing. Losses Will Not Cool AAL Stock In the fourth quarter, American Airlines posted GAAP earnings per share loss of $3.81.
Losses Will Not Cool AAL Stock In the fourth quarter, American Airlines posted GAAP earnings per share loss of $3.81. American Airlines Group (NASDAQ:AAL) stock outperformed the major indexes for the first two months of the year. Source: GagliardiPhotography / Shutterstock.com As the vaccine administration reaches the majority of the population, AAL stock will continue climbing.
American Airlines Group (NASDAQ:AAL) stock outperformed the major indexes for the first two months of the year. Losses Will Not Cool AAL Stock In the fourth quarter, American Airlines posted GAAP earnings per share loss of $3.81. Source: GagliardiPhotography / Shutterstock.com As the vaccine administration reaches the majority of the population, AAL stock will continue climbing.
Source: GagliardiPhotography / Shutterstock.com As the vaccine administration reaches the majority of the population, AAL stock will continue climbing. Losses Will Not Cool AAL Stock In the fourth quarter, American Airlines posted GAAP earnings per share loss of $3.81. American Airlines Group (NASDAQ:AAL) stock outperformed the major indexes for the first two months of the year.
4638.0
2021-03-11 00:00:00 UTC
UK shares inch higher; HSBC, AstraZeneca cap gains
AAL
https://www.nasdaq.com/articles/uk-shares-inch-higher-hsbc-astrazeneca-cap-gains-2021-03-11
nan
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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) * Miners top gainers on FTSE 100 * Housing market slowed in February * IG Group jumps on strong results * FTSE 100 up 0.2%, FTSE 250 adds 0.6% (Updates to close) By Shivani Kumaresan and Amal S March 11 (Reuters) - British shares ended higher on Thursday as firmer commodity prices boosted mining and energy stocks, while HSBC traded ex-dividend and AstraZeneca sank on doubts over its COVID-19 vaccine. The blue-chip FTSE 100 index <.FTSE> ended up 0.2%, with mining stocks including Rio Tinto , Anglo American and BHP Group gaining between 1.8% and 4.6%.[MET/L] Oil heavyweights BP and Royal Dutch Shell were also among the biggest boosts to the FTSE 100, as crude prices rose. [O/R] HSBC Holdings , which traded ex-dividend, was the worst performer in the index, while AstraZeneca fell 2.5% after health authorities in Italy, Denmark and Norway temporarily suspended the use of the drugmaker's COVID-19 vaccines on reports of blood clots and death. [nL1N2L90OH] [nL8N2L95KL] Benign U.S. inflation data had taken some recent pressure off stocks, with Wall Street indexes hitting record highs. But investors see overheated inflation as a long shot in the UK, given the severe economic slowdown from COVID-19. [.N] "We're not convinced that we're going to get strong inflation this year because the economy is still too weak," said Andrea Cicione, head of strategy at TS Lombard. "There's still a huge output gap that needs to be filled and the economy is working below potential, that simply aren't the conditions for inflation to fully develop, that's more of a story for 2022 and beyond" Still, the FTSE's recovery run from pandemic lows has somewhat stalled this year as sectors apart from financials came under pressure from high bond yields. Weak local economic readings have also weighed on sentiment. The slow start to 2021 for Britain's housing market stretched into February, before finance minister Rishi Sunak announced new measures that could revive a property boom that began after the first lockdown last year, a survey showed. [nL8N2L85BK] The domestically focused mid-cap FTSE 250 index <.FTMC> rose 0.6%, led by industrials stocks. IG Group rose 4.9% on a jump in third-quarter revenue despite a tough comparative a year ago, driven by high trading during the period that saw a retail frenzy in financial markets. [nL4N2L91TE] (Reporting by Shivani Kumaresan and Amal S in Bengaluru; Editing by Rashmi Aich and Shailesh Kuber) ((Shivani.Kumaresan@thomsonreuters.com; +1 646 223 8780;)) (( For related prices, Reuters users may click on - * UK stock report [.L] FTSE index: <0#.FTS6> techMARK 100 index: <.FTT1X> FTSE futures: <0#FFI:> Gilt futures: <0#FLG:> Smallcap index: <.FTSC> FTSE 250 index: <.FTMC> FTSE 350 index: <.FTLC> Market digest: <.AD.L> Top 10 by vol: <.AV.L> Top price gainers: <.NG.L> Top % gainers: <.PG.L> Top price losers: <.NL.L> Top % losers: <.PL.L> * For related news, click on - * UK hot stocks: [HOT] and [GB] Wall Street: [.N] Gilts report: [GB/] Euro bond report [GVD/EUR] Pan European stock report: [.EU] Tokyo stocks: [.T] HK stocks: [.HK] Sterling report: [GBP/] Dollar report: [USD/] * For company prices, click on - * Company directory: By sector: * For pan-European market data, click on - * European Equities speed guide................ FTSE Eurotop 300 index........................... <.FTEU3> DJ STOXX index................................... <.STOXX> Top 10 STOXX sectors........................ <.PGL.STOXXS> Top 10 EUROSTOXX sectors................... <.PGL.STOXXES> Top 10 Eurotop 300 sectors.................. <.PGL.FTEU3S> Top 25 European pct gainers.................... <.PG.PEUR> Top 25 European pct losers..................... <.PL.PEUR>)) Keywords: BRITAIN STOCKS/ (UPDATE 2) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
(Updates to close) By Shivani Kumaresan and Amal S March 11 (Reuters) - British shares ended higher on Thursday as firmer commodity prices boosted mining and energy stocks, while HSBC traded ex-dividend and AstraZeneca sank on doubts over its COVID-19 vaccine. [O/R] HSBC Holdings , which traded ex-dividend, was the worst performer in the index, while AstraZeneca fell 2.5% after health authorities in Italy, Denmark and Norway temporarily suspended the use of the drugmaker's COVID-19 vaccines on reports of blood clots and death. "There's still a huge output gap that needs to be filled and the economy is working below potential, that simply aren't the conditions for inflation to fully develop, that's more of a story for 2022 and beyond" Still, the FTSE's recovery run from pandemic lows has somewhat stalled this year as sectors apart from financials came under pressure from high bond yields.
(( For related prices, Reuters users may click on - * UK stock report [.L] FTSE index: <0#.FTS6> techMARK 100 index: <.FTT1X> FTSE futures: <0#FFI:> Gilt futures: <0#FLG:> Smallcap index: <.FTSC> FTSE 250 index: <.FTMC> FTSE 350 index: <.FTLC> Market digest: <.AD.L> Top 10 by vol: <.AV.L> Top price gainers: <.NG.L> Top % gainers: <.PG.L> Top price losers: <.NL.L> Top % losers: <.PL.L> * For related news, click on - * UK hot stocks: [HOT] and [GB] Wall Street: [.N] Gilts report: [GB/] Euro bond report [GVD/EUR] Pan European stock report: [.EU] Tokyo stocks: [.T] HK stocks: [.HK] Sterling report: [GBP/] Dollar report: [USD/] * For pan-European market data, click on - * European Equities speed guide................ FTSE Eurotop 300 index........................... <.FTEU3> DJ STOXX index................................... <.STOXX> Top 10 STOXX sectors........................ <.PGL.STOXXS> Top 10 EUROSTOXX sectors................... <.PGL.STOXXES> Top 10 Eurotop 300 sectors.................. <.PGL.FTEU3S> Top 25 European pct gainers.................... <.PG.PEUR> Top 25 European pct losers..................... <.PL.PEUR>))
(( For related prices, Reuters users may click on - * UK stock report [.L] FTSE index: <0#.FTS6> techMARK 100 index: <.FTT1X> FTSE futures: <0#FFI:> Gilt futures: <0#FLG:> Smallcap index: <.FTSC> FTSE 250 index: <.FTMC> FTSE 350 index: <.FTLC> Market digest: <.AD.L> Top 10 by vol: <.AV.L> Top price gainers: <.NG.L> Top % gainers: <.PG.L> Top price losers: <.NL.L> Top % losers: <.PL.L> * For related news, click on - * UK hot stocks: [HOT] and [GB] Wall Street: [.N] Gilts report: [GB/] Euro bond report [GVD/EUR] Pan European stock report: [.EU] Tokyo stocks: [.T] HK stocks: [.HK] Sterling report: [GBP/] Dollar report: [USD/] * For pan-European market data, click on - * European Equities speed guide................ FTSE Eurotop 300 index........................... <.FTEU3> DJ STOXX index................................... <.STOXX> Top 10 STOXX sectors........................ <.PGL.STOXXS> Top 10 EUROSTOXX sectors................... <.PGL.STOXXES> Top 10 Eurotop 300 sectors.................. <.PGL.FTEU3S> Top 25 European pct gainers.................... <.PG.PEUR> Top 25 European pct losers..................... <.PL.PEUR>))
(For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window) * Miners top gainers on FTSE 100 * Housing market slowed in February * IG Group jumps on strong results * FTSE 100 up 0.2%, FTSE 250 adds 0.6% (Updates to close) By Shivani Kumaresan and Amal S March 11 (Reuters) - British shares ended higher on Thursday as firmer commodity prices boosted mining and energy stocks, while HSBC traded ex-dividend and AstraZeneca sank on doubts over its COVID-19 vaccine. (( For related prices, Reuters users may click on - * UK stock report [.L] FTSE index: <0#.FTS6> techMARK 100 index: <.FTT1X> FTSE futures: <0#FFI:> Gilt futures: <0#FLG:> Smallcap index: <.FTSC> FTSE 250 index: <.FTMC> FTSE 350 index: <.FTLC> Market digest: <.AD.L> Top 10 by vol: <.AV.L> Top price gainers: <.NG.L> Top % gainers: <.PG.L> Top price losers: <.NL.L> Top % losers: <.PL.L>
4639.0
2021-03-11 00:00:00 UTC
Why UAL Stock Will Continue to Fly High
AAL
https://www.nasdaq.com/articles/why-ual-stock-will-continue-to-fly-high-2021-03-11
nan
nan
InvestorPlace - Stock Market News, Stock Advice & Trading Tips Since early February, United Airlines (NASDAQ:UAL) has been in rally mode. It’s all about the so-called “reopening” trade and it is having a widespread impact across the whole sector, as seen with companies like American Airlines (NASDAQ:AAL) and Southwest Airlines (NYSE:LUV). As for UAL stock, the shares are up about 24% year-to-date (YTD) and the market capitalization is $17.1 billion. Source: NextNewMedia / Shutterstock.com Of course, there has been a notable improvement with the spread and impact of the Covid-19 pandemic. It’s not necessarily clear why this is the case. It could be that levels of immunity are becoming higher and the vaccines are starting to have a positive impact. But regardless, the trends are certainly encouraging. So, can UAL stock keep up the momentum? Or is it time to take profits? Well, I actually think the bull case remains intact. Here’s why. UAL Stock: The Positives The last time United Airlines reported its earnings — which was on Jan. 20 — the situation did look dire. For example, the company reported a net loss of $1.9 billion in the fourth quarter, compared to a profit of $641 million in the same period a year ago (Page 9). For the whole year, the losses came to a terrible $7.1 billion. But despite all this, there were still some encouraging signs. The company was able to continue to make progress with reducing the costs, for instance. In Q4, the burn rate was $19 million a day, which was $5 million lower than the prior quarter. 7 Stocks to Buy That Are Cheering for March Madness United has also been able to bolster its balance sheet, which bodes well for UAL stock. Note that the liquidity reached about $19.7 billion in the quarter. Part of this was due to the fact the company did not have to withdraw certain government funds. According to CEO Scott Kirby, in the earnings press release: “Aggressively managing the challenges of 2020 depended on our innovation and fast-paced decision making. But, the truth is that COVID-19 has changed United Airlines forever.” In other words, UAL is a much stronger company now. Demand for Travel On top of this, there also appears to be significant pent-up demand for travel. That demand should help raise UAL stock. To get a sense, look at what Booking Holdings’ (NASDAQ:BKNG) CEO, Glenn Fogel, had to say on CNBC this week: “People want to travel. Everybody’s just anxious to get their lives back the way it used to be. So I would say go out there, look at [prices] now, if you have to cancel, you cancel […] I do see prices going up in some places and certainly we’ve seen some airfares going up to for the summer.” For the most part, it also seems like the vaccine rollout is progressing nicely. A key has been the introduction of Johnson & Johnson’s (NYSE:JNJ) new vaccine offering, which should make a big difference. Finally, the passage of the fiscal stimulus bill should be another strong catalyst. In the coming weeks, the U.S. Treasury will be sending out $1,400 checks to millions of America. Thus, there should be enough financial firepower for people to ramp up their travels plans. Bottom Line on UAL Now, there are certainly risks with UAL stock. For example, there are various Covid-19 mutations that have emerged which could reverse some of the progress we’ve made. But, then again, it does look like the vaccines have been quite robust. Next, business travel will likely remain subdued. In part, that’s because businesses have learned to use video-conferencing for sales and conferences after a year of Covid-19. Such approaches may take some time to change. But for Wall Street, there appears to be a change of focus. There has been a rotation from high-growth stocks — especially in the tech sector — to those companies that should benefit from a post-pandemic reopening of the economy. UAL stock fits that bill — it’s a name that should continue to be top-of-mind for investors. On the date of publication, Tom Taulli did not have (either directly or indirectly) any positions in the securities mentioned in this article. Tom Taulli (@ttaulli) is the author of various books on investing and technology, including Artificial Intelligence Basics, High-Profit IPO Strategies and All About Short Selling.  He is also the founder of WebIPO, which was one of the first platforms for public offerings during the 1990s.    The post Why UAL Stock Will Continue to Fly High 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.
It’s all about the so-called “reopening” trade and it is having a widespread impact across the whole sector, as seen with companies like American Airlines (NASDAQ:AAL) and Southwest Airlines (NYSE:LUV). For example, the company reported a net loss of $1.9 billion in the fourth quarter, compared to a profit of $641 million in the same period a year ago (Page 9). According to CEO Scott Kirby, in the earnings press release: “Aggressively managing the challenges of 2020 depended on our innovation and fast-paced decision making.
It’s all about the so-called “reopening” trade and it is having a widespread impact across the whole sector, as seen with companies like American Airlines (NASDAQ:AAL) and Southwest Airlines (NYSE:LUV). InvestorPlace - Stock Market News, Stock Advice & Trading Tips Since early February, United Airlines (NASDAQ:UAL) has been in rally mode. UAL Stock: The Positives The last time United Airlines reported its earnings — which was on Jan. 20 — the situation did look dire.
It’s all about the so-called “reopening” trade and it is having a widespread impact across the whole sector, as seen with companies like American Airlines (NASDAQ:AAL) and Southwest Airlines (NYSE:LUV). InvestorPlace - Stock Market News, Stock Advice & Trading Tips Since early February, United Airlines (NASDAQ:UAL) has been in rally mode. UAL Stock: The Positives The last time United Airlines reported its earnings — which was on Jan. 20 — the situation did look dire.
It’s all about the so-called “reopening” trade and it is having a widespread impact across the whole sector, as seen with companies like American Airlines (NASDAQ:AAL) and Southwest Airlines (NYSE:LUV). InvestorPlace - Stock Market News, Stock Advice & Trading Tips Since early February, United Airlines (NASDAQ:UAL) has been in rally mode. UAL Stock: The Positives The last time United Airlines reported its earnings — which was on Jan. 20 — the situation did look dire.
4640.0
2021-03-11 00:00:00 UTC
Ethiopian 737 MAX crash families set to obtain key Boeing documents
AAL
https://www.nasdaq.com/articles/ethiopian-737-max-crash-families-set-to-obtain-key-boeing-documents-2021-03-11
nan
nan
By Tracy Rucinski March 11 (Reuters) - Families of victims of the deadly 2019 Ethiopian Airlines jet crash may obtain as soon as Thursday Boeing's reports to U.S. regulators that helped keep its 737 MAX flying after a prior disaster with the same jet in Indonesia five months earlier. The National Transportation Safety Board (NTSB), an independent U.S. government investigative agency, told Boeing Co BA.N in a letter on Monday it should turn over nearly 2,000 documents to lawyers representing families who want to determine what the company knew about its flight systems after the Indonesian crash on Lion Air. The agency said international rules mandate the release of the documents after two years from the crash date, even though Ethiopia has yet to produce a final crash report which the agency cited in blocking the documents until now, according to the letter reviewed by Reuters. Boeing said it plans to produce the investigation-related information to the plaintiffs beginning today following the NTSB guidance that, at the second anniversary of the Ethiopian accident, the restrictions would be lifted. The plaintiffs lawyers said they expect the papers to show what Boeing executives knew of defects in the flight system of the newly designed aircraft following the Indonesian crash. An automated flight-control system called MCAS has been implicated in both crashes, which together killed 346 people. The plane continued to fly until the Ethiopian crash prompted a global grounding. "What we want to see are the documents upon which Boeing resisted the grounding of the airplane and based its assertion to its customers that the airplane was safe," plaintiffs' attorney Justin Green told Reuters. Any evidence showing that Boeing executives were aware of the 737 MAX problems could expose Boeing to huge punitive damages, which are unusual in air transportation accidents because planes rarely fly with a known deadly defect. Boeing has already provided plaintiffs 112,587 documents encompassing millions of pages, Greene said, but the records under pursuit are believed to be an important part of the case. BUILDING A CASE Boeing has said it has implemented changes that ensure accidents like the ones in Indonesia and Ethiopia never happen again, and numerous aviation regulators have re-approved the plane for flight. The company resolved a 737 MAX criminal probe in January with a $2.5 billion Department of Justice settlement and has mostly settled the Lion Air crash litigation. It still faces an investor lawsuit in Delaware against its board and around 140 lawsuits by families of the Ethiopian crash. In the DOJ settlement Boeing admitted that two of its 737 MAX technical pilots, who are still under criminal investigation, had deceived the U.S. Federal Aviation Administration (FAA) about MCAS. While the settlement exonerated Boeing's senior managers, legal experts said it bolsters one part of the plaintiffs' punitive claim that Boeing intended to defraud the FAA and succeeded. However, the experts said punitive damages are rarely awarded in aircraft crash cases, in part because they are difficult to prove. Boeing could argue, for example, that the Ethiopian Airlines' pilots were informed after the Lion Air crash about the steps to follow in the event of an MCAS failure, said Kenneth Quinn of International Aviation Law. Still, Boeing will likely work hard to settle the cases and avoid a jury trial, a path followed by most companies involved in crash lawsuits, according to Gary Kennedy, former general counsel for American Airlines AAL.O. "From the company's perspective, the worst thing is a headline that relives the final moments of someone's life onboard that aircraft," said Kennedy, who was with American during litigation stemming from the Sept. 11, 2001 attacks and a separate deadly crash in New York two months later. (Reporting by Tracy Rucinski Editing by Tom Hals and David Gregorio) ((tracy.rucinski@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.
Still, Boeing will likely work hard to settle the cases and avoid a jury trial, a path followed by most companies involved in crash lawsuits, according to Gary Kennedy, former general counsel for American Airlines AAL.O. The National Transportation Safety Board (NTSB), an independent U.S. government investigative agency, told Boeing Co BA.N in a letter on Monday it should turn over nearly 2,000 documents to lawyers representing families who want to determine what the company knew about its flight systems after the Indonesian crash on Lion Air. "From the company's perspective, the worst thing is a headline that relives the final moments of someone's life onboard that aircraft," said Kennedy, who was with American during litigation stemming from the Sept. 11, 2001 attacks and a separate deadly crash in New York two months later.
Still, Boeing will likely work hard to settle the cases and avoid a jury trial, a path followed by most companies involved in crash lawsuits, according to Gary Kennedy, former general counsel for American Airlines AAL.O. By Tracy Rucinski March 11 (Reuters) - Families of victims of the deadly 2019 Ethiopian Airlines jet crash may obtain as soon as Thursday Boeing's reports to U.S. regulators that helped keep its 737 MAX flying after a prior disaster with the same jet in Indonesia five months earlier. The National Transportation Safety Board (NTSB), an independent U.S. government investigative agency, told Boeing Co BA.N in a letter on Monday it should turn over nearly 2,000 documents to lawyers representing families who want to determine what the company knew about its flight systems after the Indonesian crash on Lion Air.
Still, Boeing will likely work hard to settle the cases and avoid a jury trial, a path followed by most companies involved in crash lawsuits, according to Gary Kennedy, former general counsel for American Airlines AAL.O. By Tracy Rucinski March 11 (Reuters) - Families of victims of the deadly 2019 Ethiopian Airlines jet crash may obtain as soon as Thursday Boeing's reports to U.S. regulators that helped keep its 737 MAX flying after a prior disaster with the same jet in Indonesia five months earlier. The National Transportation Safety Board (NTSB), an independent U.S. government investigative agency, told Boeing Co BA.N in a letter on Monday it should turn over nearly 2,000 documents to lawyers representing families who want to determine what the company knew about its flight systems after the Indonesian crash on Lion Air.
Still, Boeing will likely work hard to settle the cases and avoid a jury trial, a path followed by most companies involved in crash lawsuits, according to Gary Kennedy, former general counsel for American Airlines AAL.O. The National Transportation Safety Board (NTSB), an independent U.S. government investigative agency, told Boeing Co BA.N in a letter on Monday it should turn over nearly 2,000 documents to lawyers representing families who want to determine what the company knew about its flight systems after the Indonesian crash on Lion Air. Any evidence showing that Boeing executives were aware of the 737 MAX problems could expose Boeing to huge punitive damages, which are unusual in air transportation accidents because planes rarely fly with a known deadly defect.
4641.0
2021-03-10 00:00:00 UTC
American Airlines upsizes, prices $10 bln bond and loan offering
AAL
https://www.nasdaq.com/articles/american-airlines-upsizes-prices-%2410-bln-bond-and-loan-offering-2021-03-10
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March 10 (Reuters) - American Airlines Group Inc upsized and priced a $10 billion bond and loan offering, supported by its AAdvantage loyalty program, the carrier said on Wednesday. The offering consists of $6.5 billion of high-yield bonds and $3.5 billion of leveraged loans, American Airlines said. The company said it plans to use part of the proceeds to repay government debt. (Reporting by Ankit Ajmera in Bengaluru; Editing by Shounak Dasgupta) ((Ankit.Ajmera@thomsonreuters.com)) Keywords: AMERICAN AIRLINE DEBT/ The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
March 10 (Reuters) - American Airlines Group Inc upsized and priced a $10 billion bond and loan offering, supported by its AAdvantage loyalty program, the carrier said on Wednesday. The company said it plans to use part of the proceeds to repay government debt. (Reporting by Ankit Ajmera in Bengaluru; Editing by Shounak Dasgupta) ((Ankit.Ajmera@thomsonreuters.com)) Keywords: AMERICAN AIRLINE DEBT/ The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
March 10 (Reuters) - American Airlines Group Inc upsized and priced a $10 billion bond and loan offering, supported by its AAdvantage loyalty program, the carrier said on Wednesday. The offering consists of $6.5 billion of high-yield bonds and $3.5 billion of leveraged loans, American Airlines said. (Reporting by Ankit Ajmera in Bengaluru; Editing by Shounak Dasgupta) ((Ankit.Ajmera@thomsonreuters.com)) Keywords: AMERICAN AIRLINE DEBT/ The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
March 10 (Reuters) - American Airlines Group Inc upsized and priced a $10 billion bond and loan offering, supported by its AAdvantage loyalty program, the carrier said on Wednesday. The company said it plans to use part of the proceeds to repay government debt. (Reporting by Ankit Ajmera in Bengaluru; Editing by Shounak Dasgupta) ((Ankit.Ajmera@thomsonreuters.com)) Keywords: AMERICAN AIRLINE DEBT/ The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
March 10 (Reuters) - American Airlines Group Inc upsized and priced a $10 billion bond and loan offering, supported by its AAdvantage loyalty program, the carrier said on Wednesday. The offering consists of $6.5 billion of high-yield bonds and $3.5 billion of leveraged loans, American Airlines said. The company said it plans to use part of the proceeds to repay government debt.
4642.0
2021-03-10 00:00:00 UTC
U.S. extends $14 billion lifeline to airlines in third government aid package
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https://www.nasdaq.com/articles/u.s.-extends-%2414-billion-lifeline-to-airlines-in-third-government-aid-package-2021-03-10
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By David Shepardson and Tracy Rucinski WASHINGTON, March 10 (Reuters) - U.S. lawmakers on Wednesday gave final approval to a new $14 billion payroll assistance package to U.S. airlines as part of a COVID-19 relief bill, the third round of government support to the struggling sector since March 2019. With the latest six-month extension that will keep thousands of workers on payrolls through Sept 30, Congress has awarded U.S. airlines $54 billion for payroll costs since March 2020. U.S. air passenger travel fell by 60% in 2020 to the lowest level since 1984, down more than 550 million passengers. U.S. passenger airlines are still collectively burning about $150 million daily, and the cash bleed is expected to continue through most of this year as demand remains depressed. Airlines for America, an industry trade group, praised the latest extension, saying it "is vital to have our employees on the job and ready to assist as our nation prepares to move forward from this crisis." U.S. airline shares have gained around 16% over the past month as domestic travel trends improve amid vaccine rollouts. The Transportation Security Administration screened over 1 million passengers on five of the first 10 days of March and analysts expect the numbers to increase heading into spring. Some low-cost carriers focusing on domestic leisure travel are starting to hire again and say they could have managed without another bailout. Overall U.S. airlines have benefited from taxpayer help more than rivals in neighboring regions like Canada, where the government has yet to extend an aid package for the industry, or in Latin America, where two large carriers filed for Chapter 11 protection due to COVID-19. The U.S. government last year also extended $25 billion in low-cost loans to airlines. Of the payroll grants, U.S. Treasury required larger airlines to repay 30% and award the government warrants. (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.
U.S. passenger airlines are still collectively burning about $150 million daily, and the cash bleed is expected to continue through most of this year as demand remains depressed. Airlines for America, an industry trade group, praised the latest extension, saying it "is vital to have our employees on the job and ready to assist as our nation prepares to move forward from this crisis." Overall U.S. airlines have benefited from taxpayer help more than rivals in neighboring regions like Canada, where the government has yet to extend an aid package for the industry, or in Latin America, where two large carriers filed for Chapter 11 protection due to COVID-19.
By David Shepardson and Tracy Rucinski WASHINGTON, March 10 (Reuters) - U.S. lawmakers on Wednesday gave final approval to a new $14 billion payroll assistance package to U.S. airlines as part of a COVID-19 relief bill, the third round of government support to the struggling sector since March 2019. With the latest six-month extension that will keep thousands of workers on payrolls through Sept 30, Congress has awarded U.S. airlines $54 billion for payroll costs since March 2020. The U.S. government last year also extended $25 billion in low-cost loans to airlines.
By David Shepardson and Tracy Rucinski WASHINGTON, March 10 (Reuters) - U.S. lawmakers on Wednesday gave final approval to a new $14 billion payroll assistance package to U.S. airlines as part of a COVID-19 relief bill, the third round of government support to the struggling sector since March 2019. With the latest six-month extension that will keep thousands of workers on payrolls through Sept 30, Congress has awarded U.S. airlines $54 billion for payroll costs since March 2020. Overall U.S. airlines have benefited from taxpayer help more than rivals in neighboring regions like Canada, where the government has yet to extend an aid package for the industry, or in Latin America, where two large carriers filed for Chapter 11 protection due to COVID-19.
With the latest six-month extension that will keep thousands of workers on payrolls through Sept 30, Congress has awarded U.S. airlines $54 billion for payroll costs since March 2020. U.S. passenger airlines are still collectively burning about $150 million daily, and the cash bleed is expected to continue through most of this year as demand remains depressed. The U.S. government last year also extended $25 billion in low-cost loans to airlines.
4643.0
2021-03-10 00:00:00 UTC
Southwest Airlines Keeps Expanding to New Cities
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https://www.nasdaq.com/articles/southwest-airlines-keeps-expanding-to-new-cities-2021-03-10
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With air travel demand remaining depressed relative to pre-pandemic levels, Southwest Airlines (NYSE: LUV) has made route map expansion a core recovery strategy. Rather than trying to deploy more capacity in existing markets where demand won't fully recover for a while, the low-fare airline giant is entering new markets to put more of its aircraft and crews to work. During 2020, Southwest announced plans to begin serving 12 new destinations. It isn't done yet. In recent weeks, the carrier has added five more airports to its route map. This ongoing route map expansion is becoming a meaningful threat for Southwest's biggest rivals: American Airlines (NASDAQ: AAL), Delta Air Lines (NYSE: DAL), and United Airlines (NASDAQ: UAL). Trying out a variety of new markets In expanding its route map, Southwest has mainly focused on leisure-friendly destinations. Its first new additions included popular ski areas (Montrose and Telluride in Colorado) as well as warm-weather destinations (Miami; Sarasota, Florida; and Palm Springs). However, Southwest has cast a wide net as it looks to grow its route network and isn't limiting itself to leisure destinations. For example, it launched service at Chicago's business-centric O'Hare International Airport last month. Similarly, it will add flights to Houston's Bush Intercontinental Airport next month. The airline will also resume service to Jackson, Mississippi in June. New destinations keep coming Southwest Airlines has continued to find a broad range of expansion opportunities in 2021. Late last month, the carrier announced that it would launch service to two new leisure destinations in May: Bozeman, Montana and Destin/Fort Walton Beach on Florida's Gulf Coast. Image source: Southwest Airlines. This Monday, the airline added three more cities to its expansion plans. It plans to launch service to Myrtle Beach, South Carolina next quarter, followed by Eugene, Oregon in the third quarter and Bellingham, Washington in the fourth quarter. Myrtle Beach is a classic leisure destination. By contrast, Eugene -- home to the University of Oregon -- is more of a business market, if anything. Finally, Bellingham sits just south of the Canadian border, and its airport has historically attracted leisure travelers from Vancouver looking to avoid higher fares on transborder flights from Canada to the U.S. A threat to network airlines Since the pandemic began a year ago, Southwest Airlines has entered or announced plans to launch service to 17 new airports. Over time, this expansion could put pressure on profitability at American Airlines, Delta Air Lines, and United Airlines. The threat from Southwest's entry into big hubs like Miami, Chicago O'Hare, and Houston Intercontinental is obvious. (The former two are American Airlines hubs; the latter two are United Airlines hubs.) However, its move into smaller leisure destinations and business markets could be even more significant in the long run. Network carriers like American, Delta, and United earn their highest margins in small and midsize cities where they face little or no competition from low-fare airlines. Most of the smaller markets Southwest is entering have limited low-fare service today, typically from ultra-low cost carriers like Allegiant Travel. Image source: United Airlines. Ultra-low cost carriers can provide some price discipline where they compete with network carriers on point-to-point routes. However, their appeal is generally limited to the most price-sensitive travelers. Furthermore, they offer few if any connecting opportunities beyond the small-city routes they serve nonstop, limiting their impact on network carriers' results in these markets. By contrast, Southwest Airlines is a more serious competitor for higher-fare traffic. And while it isn't a hub-and-spoke carrier, it operates more than 250 daily departures from its biggest focus cities: Denver and Chicago's Midway Airport. That means it can typically offer efficient connections to each of its new destinations from dozens of cities across its route network. Thanks to its low costs, Southwest should be able to earn strong margins in most of its new small and midsize destinations even as it undercuts American, Delta, and United on price. Thus, its new routes are likely to become nice contributors to the airline's profitability once they mature. Conversely, facing major low-cost competition in a slew of new city-pair markets will cut into the network carriers' profits in smaller cities. The good news for American, Delta, and United is that their route networks are optimized to maximize the number of efficient connecting opportunities, whereas Southwest still focuses primarily on point-to-point traffic. For now, the majority of the network carriers' small-city traffic probably remains protected from meaningful competition. That said, Southwest Airlines may well add frequencies in the smaller markets it is entering -- and it may not be done expanding its route network. As the carrier continues to grow in smaller markets, it could steadily chip away at a huge profit center for its biggest rivals. Thus, airline investors should keep a close eye on Southwest's ongoing small-city expansion. 10 stocks we like better than Southwest Airlines When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Southwest Airlines wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of February 24, 2021 Adam Levine-Weinberg owns shares of Delta Air Lines. The Motley Fool recommends Delta Air Lines and Southwest Airlines. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
This ongoing route map expansion is becoming a meaningful threat for Southwest's biggest rivals: American Airlines (NASDAQ: AAL), Delta Air Lines (NYSE: DAL), and United Airlines (NASDAQ: UAL). With air travel demand remaining depressed relative to pre-pandemic levels, Southwest Airlines (NYSE: LUV) has made route map expansion a core recovery strategy. Its first new additions included popular ski areas (Montrose and Telluride in Colorado) as well as warm-weather destinations (Miami; Sarasota, Florida; and Palm Springs).
This ongoing route map expansion is becoming a meaningful threat for Southwest's biggest rivals: American Airlines (NASDAQ: AAL), Delta Air Lines (NYSE: DAL), and United Airlines (NASDAQ: UAL). Network carriers like American, Delta, and United earn their highest margins in small and midsize cities where they face little or no competition from low-fare airlines. Most of the smaller markets Southwest is entering have limited low-fare service today, typically from ultra-low cost carriers like Allegiant Travel.
This ongoing route map expansion is becoming a meaningful threat for Southwest's biggest rivals: American Airlines (NASDAQ: AAL), Delta Air Lines (NYSE: DAL), and United Airlines (NASDAQ: UAL). Finally, Bellingham sits just south of the Canadian border, and its airport has historically attracted leisure travelers from Vancouver looking to avoid higher fares on transborder flights from Canada to the U.S. A threat to network airlines Since the pandemic began a year ago, Southwest Airlines has entered or announced plans to launch service to 17 new airports. That said, Southwest Airlines may well add frequencies in the smaller markets it is entering -- and it may not be done expanding its route network.
This ongoing route map expansion is becoming a meaningful threat for Southwest's biggest rivals: American Airlines (NASDAQ: AAL), Delta Air Lines (NYSE: DAL), and United Airlines (NASDAQ: UAL). Over time, this expansion could put pressure on profitability at American Airlines, Delta Air Lines, and United Airlines. Most of the smaller markets Southwest is entering have limited low-fare service today, typically from ultra-low cost carriers like Allegiant Travel.
4644.0
2021-03-09 00:00:00 UTC
Looking For Trending Stocks Today? 4 Reopening Stocks To Watch
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https://www.nasdaq.com/articles/looking-for-trending-stocks-today-4-reopening-stocks-to-watch-2021-03-09
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Top Reopening Stocks To Watch As Big Tech Continues To Underperform If there’s one trend that has continued building interest in the stock market today, it’s been that of reopening stocks. Originally coined by Fundstrat’s Tom Lee early in the pandemic, “reopening stocks” are companies that were hit hardest by the coronavirus pandemic but could benefit the greatest from an economic reopening. The umbrella of reopening stocks is broad and covers anything from automotive to consumer cyclical stocks. The stock market has been brutal to tech investors, to say the least. The Nasdaq’s slump has yet to see its bottom. Lee sees a major market shift underway in which Big Tech starts to greatly underperform the broader market. So, he’s telling investors to double down on top reopening stocks, which are likely to profit as the economy reopens. For example, we can see this in the likes of TripAdvisor (NASDAQ: TRIP) and American Airlines (NASDAQ: AAL). And the optimism we have today is not unwarranted. Recall that the White House delivered good news to the U.S. public last week, moving up the timeline for vaccine distribution. President Joe Biden said there should be enough vaccine supply for every American adult to get inoculated by the end of May. That’s two months ahead of previous estimates. Assuming the estimate is correct, the U.S. could begin to normalize by the end of spring. Before that happens, investors should prepare a list of top reopening stocks to buy before the rest of the market caught on. Top Reopening stocks To Watch In The Stock Market Today Walt Disney Co. (NYSE: DIS) AMC Entertainment Holdings (NYSE: AMC) Ford Motor Co. (NYSE: F) Macy’s (NYSE:M) Walt Disney Co. (DIS) First up, Disney stock had a strong start of the week by closing 6.27% higher. This came after California provided new guidance allowing amusement parks to reopen in the state starting April 1. This is highly encouraging for DIS stock because the theme parks have been closed for about a year due to COVID-19 related restrictions. Once the company’s theme parks open at full capacity, there would be a surge in in-person entertainment revenue streams. Source: TD Ameritrade TOS Of course, the entertainment powerhouse restructured in recent months to make Disney+ its core business. But we know that Disney’s tourism-focused businesses are still essential to the company. Sure, Disney+ may get all the attention these days. However, as we slowly normalize with the vaccines continuing to roll-out, we could see pent-up demand for its products and services as it slowly opens up its theme parks and merchandise stores. With its streaming platform firing on all cylinders at the same time, Disney could come out of this pandemic stronger than before. All things considered, will you be adding DIS stock to your portfolio? Read More Roblox (RBLX) Stock IPO: Here’s What Investors Need To Know Are These The Best Stocks To Buy This Week? 4 Tech Stocks To Know AMC Entertainment Holdings (AMC) Another epicenter stock to watch is AMC Entertainment Holdings, joining a broader rally as Reddit darlings and epicenter favorites bucked the tech sell-off. As the biggest cinema operator in the world, it is no surprise that AMC has seen the biggest fall in revenue over the past year. The cinema operator was heavily in debt and facing increasing competition from in-house entertainment options. Therefore, many investors are shying away from AMC stock. The recent announcement that movie theaters will reopen in New York City this month may have given the stock a push, but not strong enough to keep the rally going. Rather, it was the returning interest from Reddit that helped extend the rally since the reopening announcement. Source: TD Ameritrade TOS Of course, the reopening plan comes with some stipulations. For instance, cinemas can only operate at 25% capacity, while the number of guests will be limited to a maximum of 50 people per screen. The ability to reopen its venues in a key market is certainly welcome news. You could almost say it is a reprieve for the struggling movie theater chain. Of course, that does not mean that the company is out of the woods yet. The question is, would you bet on AMC stock in anticipation of more venues reopening besides the price support from Reddit investors? [Read More] Coupang IPO: What Should Investors Know About This E-Commerce Stock? Ford Motors (F) Next up, Ford stock appears to be revving up. It is bucking the trend of EV stocks sell-off including hot names like Tesla (NASDAQ: TSLA) and Nio (NYSE: NIO). The legendary automaker has built up some momentum amid a bright outlook with its new all-electric vehicle, the Mustang Mach-E. If you have been following the space, you would’ve seen news of Mustang Mach-E eating into Tesla’s US sales. That could possibly explain why F stock could hold relatively stable while other red-hot EV stocks are tumbling by double-digit percentages in recent trading sessions. Source: TD Ameritrade TOS It’s only a matter of time emerging EV players like Ford could grab significant market shares as it expands to other markets. No doubt, there is a lot of room for Ford to expand into. After all, the trillion-dollar auto market can accommodate multiple big players. You are looking at an established automaker with high exposure to both EV and AV technology. The question is, do you believe Ford has the potential to become a force to be reckoned with? If so, would you be willing to bet that F stock will see brighter days ahead as the economy reopens? [Read More] Top 5 Things To Watch In The Stock Market This Week Macy’s Last on the list is Macy’s. Macy’s is the largest U.S. department store company by retail sales. It has over 500 stores and has over 130,000 employees. The company’s flagship store is in New York City and features about 1.1 million square feet of retail space. The company posted its first quarterly profit in a year. This came as efforts to slash inventories and rely less on deep discounting during the holidays paid off. Source: TD Ameritrade TOS Macy’s said it expects 2021 to be a year for recovery and rebuilding. The company seems to be clawing its way back from the losses it has suffered during the pandemic. Investors clearly think the company is on road to recovery, fueled by a combination of vaccine rollout and the successful acceleration of its e-commerce business. Given the uncertainty of its turnaround time frame, is Macy stock on your list of top reopening stocks to watch? Or is this rally a profit-taking opportunity? Your guess is as good as mine. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
For example, we can see this in the likes of TripAdvisor (NASDAQ: TRIP) and American Airlines (NASDAQ: AAL). Recall that the White House delivered good news to the U.S. public last week, moving up the timeline for vaccine distribution. The recent announcement that movie theaters will reopen in New York City this month may have given the stock a push, but not strong enough to keep the rally going.
For example, we can see this in the likes of TripAdvisor (NASDAQ: TRIP) and American Airlines (NASDAQ: AAL). Top Reopening Stocks To Watch As Big Tech Continues To Underperform If there’s one trend that has continued building interest in the stock market today, it’s been that of reopening stocks. Top Reopening stocks To Watch In The Stock Market Today Walt Disney Co. (NYSE: DIS) AMC Entertainment Holdings (NYSE: AMC) Ford Motor Co. (NYSE: F) Macy’s (NYSE:M) Walt Disney Co. (DIS) First up, Disney stock had a strong start of the week by closing 6.27% higher.
For example, we can see this in the likes of TripAdvisor (NASDAQ: TRIP) and American Airlines (NASDAQ: AAL). Top Reopening Stocks To Watch As Big Tech Continues To Underperform If there’s one trend that has continued building interest in the stock market today, it’s been that of reopening stocks. Top Reopening stocks To Watch In The Stock Market Today Walt Disney Co. (NYSE: DIS) AMC Entertainment Holdings (NYSE: AMC) Ford Motor Co. (NYSE: F) Macy’s (NYSE:M) Walt Disney Co. (DIS) First up, Disney stock had a strong start of the week by closing 6.27% higher.
For example, we can see this in the likes of TripAdvisor (NASDAQ: TRIP) and American Airlines (NASDAQ: AAL). Top Reopening Stocks To Watch As Big Tech Continues To Underperform If there’s one trend that has continued building interest in the stock market today, it’s been that of reopening stocks. Top Reopening stocks To Watch In The Stock Market Today Walt Disney Co. (NYSE: DIS) AMC Entertainment Holdings (NYSE: AMC) Ford Motor Co. (NYSE: F) Macy’s (NYSE:M) Walt Disney Co. (DIS) First up, Disney stock had a strong start of the week by closing 6.27% higher.
4645.0
2021-03-09 00:00:00 UTC
Should You Sell JetBlue Stock After The Recent Rally?
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https://www.nasdaq.com/articles/should-you-sell-jetblue-stock-after-the-recent-rally-2021-03-10
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The shares of JetBlue Airways (NASDAQ: JBLU) have rallied 30% in the past twenty-one days almost reaching pre-Covid levels, driven by the second round of payroll support by the U.S. government and the recent surge in passenger numbers at TSA checkpoints. Will JBLU stock sustain its value or observe a downside? Considering Booking Holdings stock (NASDAQ: BKNG) as a proxy for travel demand, the recent surge indicates that ongoing vaccination is alleviating travel fears with the likelihood of a rebound in travel demand later this year. Trefis compares historical stock price trends of JetBlue and Booking Holdings in an interactive dashboard analysis, JBLU Stock Has 51% Chance Of A Decline Over The Next Month After Rising 1.8% In The Last 5 Days. Airline and OTA stocks have outperformed broader markets this year In the past twenty-one days, JetBlue, Southwest, and Spirit Airlines stocks have rallied 30%, 23%, and 30%, respectively – higher than 7.4% gain observed in BKNG stock. Looking at the past ten-day performance, the travel industry is touching new heights even though broader markets are observing a correction. Fundamentally, JetBlue Airways and Booking Holdings observed a similar 60% (y-o-y) top-line contraction in 2020 as travel demand fell to multi-year lows due to the pandemic. Is JBLU stock trading at a risky level? With companies implementing cost control and cash preservation measures, a comparison of cash burn rate can be considered as a measure of operational efficiency. In 2020, JetBlue Airways burned $234 million (operating cash outflow including the impact of payroll support program) whereas Booking Holdings generated $85 million. Considering JetBlue and Booking Holding’s historical cash generation capabilities, both companies can recoup pandemic-related losses within one year as demand trends back to normal. As Booking Holding’s balance sheet observed a lower pandemic impact than JetBlue, BKNG stock has surpassed pre-Covid levels while JetBlue stock remains slightly below. Interestingly, airline tickets reserved through Booking Holdings increased by 4% (y-o-y) in Q4’20. Therefore, we believe that JBLU stock has low downside risk supported by travel demand, stringent cost control measures, and a second round of government aid. While the hospitality sector observes a recovery, the coronavirus pandemic has created many pricing discontinuities which can offer attractive trading opportunities. For example, you’ll be surprised how the stock valuation for Expeditors International vs. LGI Homes shows a disconnect with their relative operational growth. You can find many such discontinuous pairs here. See all Trefis Price Estimates and Download Trefis Data here What’s behind Trefis? See How It’s Powering New Collaboration and What-Ifs For CFOs and Finance Teams | Product, R&D, and Marketing Teams The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The shares of JetBlue Airways (NASDAQ: JBLU) have rallied 30% in the past twenty-one days almost reaching pre-Covid levels, driven by the second round of payroll support by the U.S. government and the recent surge in passenger numbers at TSA checkpoints. Fundamentally, JetBlue Airways and Booking Holdings observed a similar 60% (y-o-y) top-line contraction in 2020 as travel demand fell to multi-year lows due to the pandemic. Considering JetBlue and Booking Holding’s historical cash generation capabilities, both companies can recoup pandemic-related losses within one year as demand trends back to normal.
In 2020, JetBlue Airways burned $234 million (operating cash outflow including the impact of payroll support program) whereas Booking Holdings generated $85 million. As Booking Holding’s balance sheet observed a lower pandemic impact than JetBlue, BKNG stock has surpassed pre-Covid levels while JetBlue stock remains slightly below. Therefore, we believe that JBLU stock has low downside risk supported by travel demand, stringent cost control measures, and a second round of government aid.
Trefis compares historical stock price trends of JetBlue and Booking Holdings in an interactive dashboard analysis, JBLU Stock Has 51% Chance Of A Decline Over The Next Month After Rising 1.8% In The Last 5 Days. Airline and OTA stocks have outperformed broader markets this year In the past twenty-one days, JetBlue, Southwest, and Spirit Airlines stocks have rallied 30%, 23%, and 30%, respectively – higher than 7.4% gain observed in BKNG stock. As Booking Holding’s balance sheet observed a lower pandemic impact than JetBlue, BKNG stock has surpassed pre-Covid levels while JetBlue stock remains slightly below.
The shares of JetBlue Airways (NASDAQ: JBLU) have rallied 30% in the past twenty-one days almost reaching pre-Covid levels, driven by the second round of payroll support by the U.S. government and the recent surge in passenger numbers at TSA checkpoints. Airline and OTA stocks have outperformed broader markets this year In the past twenty-one days, JetBlue, Southwest, and Spirit Airlines stocks have rallied 30%, 23%, and 30%, respectively – higher than 7.4% gain observed in BKNG stock. Therefore, we believe that JBLU stock has low downside risk supported by travel demand, stringent cost control measures, and a second round of government aid.
4646.0
2021-03-09 00:00:00 UTC
Miners weigh on European stocks after best day in four months
AAL
https://www.nasdaq.com/articles/miners-weigh-on-european-stocks-after-best-day-in-four-months-2021-03-09
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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 March 9 (Reuters) - European shares slipped on Tuesday after posting their best session in four months, as a retreat in commodity prices pressured miners. The pan-European STOXX 600 .STOXX was down 0.1% in early deals, with miners .SXPP falling 1.9% and automakers .SXAP dropping 1%. Dalian iron ore futures fell by the 10% daily limit after anti-pollution restrictions in China's top steelmaking city of Tangshan, while metal prices were also hit by a firm dollar.IRONORE/MET/L UK-listed miners Rio Tinto RIO.L, BHP Group BHPB.L and Anglo American AAL.L fell more than 2%, weighing on UK's commodity-heavy FTSE 100 .FTSE. The German DAX .GDAXI eased 0.3% after hitting an all-time high in the previous session. German automotive parts maker Continental AG CONG.DE fell 5.1% after it reported a 12.7% drop in group sales, thanks in part to falling revenue in the automotive, rubber and powertrain divisions. (Reporting by Sruthi Shankar and Devik Jain in Bengaluru; Editing by Subhranshu Sahu) ((sruthi.shankar@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 6182 2787;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Dalian iron ore futures fell by the 10% daily limit after anti-pollution restrictions in China's top steelmaking city of Tangshan, while metal prices were also hit by a firm dollar.IRONORE/MET/L UK-listed miners Rio Tinto RIO.L, BHP Group BHPB.L and Anglo American AAL.L fell more than 2%, weighing on UK's commodity-heavy FTSE 100 .FTSE. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window March 9 (Reuters) - European shares slipped on Tuesday after posting their best session in four months, as a retreat in commodity prices pressured miners. The German DAX .GDAXI eased 0.3% after hitting an all-time high in the previous session.
Dalian iron ore futures fell by the 10% daily limit after anti-pollution restrictions in China's top steelmaking city of Tangshan, while metal prices were also hit by a firm dollar.IRONORE/MET/L UK-listed miners Rio Tinto RIO.L, BHP Group BHPB.L and Anglo American AAL.L fell more than 2%, weighing on UK's commodity-heavy FTSE 100 .FTSE. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window March 9 (Reuters) - European shares slipped on Tuesday after posting their best session in four months, as a retreat in commodity prices pressured miners. The pan-European STOXX 600 .STOXX was down 0.1% in early deals, with miners .SXPP falling 1.9% and automakers .SXAP dropping 1%.
Dalian iron ore futures fell by the 10% daily limit after anti-pollution restrictions in China's top steelmaking city of Tangshan, while metal prices were also hit by a firm dollar.IRONORE/MET/L UK-listed miners Rio Tinto RIO.L, BHP Group BHPB.L and Anglo American AAL.L fell more than 2%, weighing on UK's commodity-heavy FTSE 100 .FTSE. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window March 9 (Reuters) - European shares slipped on Tuesday after posting their best session in four months, as a retreat in commodity prices pressured miners. German automotive parts maker Continental AG CONG.DE fell 5.1% after it reported a 12.7% drop in group sales, thanks in part to falling revenue in the automotive, rubber and powertrain divisions.
Dalian iron ore futures fell by the 10% daily limit after anti-pollution restrictions in China's top steelmaking city of Tangshan, while metal prices were also hit by a firm dollar.IRONORE/MET/L UK-listed miners Rio Tinto RIO.L, BHP Group BHPB.L and Anglo American AAL.L fell more than 2%, weighing on UK's commodity-heavy FTSE 100 .FTSE. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window March 9 (Reuters) - European shares slipped on Tuesday after posting their best session in four months, as a retreat in commodity prices pressured miners. The pan-European STOXX 600 .STOXX was down 0.1% in early deals, with miners .SXPP falling 1.9% and automakers .SXAP dropping 1%.
4647.0
2021-03-09 00:00:00 UTC
European stocks extend gains on support from oil, utilities
AAL
https://www.nasdaq.com/articles/european-stocks-extend-gains-on-support-from-oil-utilities-2021-03-09
nan
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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) * STOXX 600 up 0.3% * Continental drops after downbeat 2021 outlook * Pandora reports organic sales growth in February (Adds comment, details; Updates market prices) By Sruthi Shankar and Devik Jain March 9 (Reuters) - European stocks extended gains on Tuesday after posting their best session in four months a day earlier, as gains in shares of oil and utility companies helped counter losses in miners. The pan-European STOXX 600 edged 0.3% higher after opening lower, with energy rising more than 1.5% each. Danish jewellery maker Pandora A/S jumped 7% to the top of STOXX 600 after reporting a 12% rise in organic sales in February. The continent's stock markets have come under pressure as a jump in bond yields on the back of quick vaccine rollouts and a massive U.S. fiscal package has fanned worries about a potential rise in inflation. Still, major European indexes have fared better than some of their tech-heavy U.S. peers. "European market is much less tech heavy than the S&P 500, much less growth dominated, so higher bond yields are not such a negative," said Nick Nelson, head of European equity strategy at UBS. "The speed of the move has been an issue ... if we're talking about a gentle rise in yields from here on, then that's more manageable, and more cyclical parts of the market such as Europe would do better." The MSCI Europe value index , which includes banking, energy and auto stocks, have risen about 9% so far this year, while its growth counterpart that tracks tech and healthcare stocks is up just 0.9%. Miners fell 1% as Dalian iron ore futures tumbled by the 10% daily limit on anti-pollution restrictions in China's top steelmaking city of Tangshan, while metal prices were also hit by a firm dollar. [IRONORE/] [MET/L] UK-listed miners Rio Tinto , BHP Group and Anglo American fell between 1.2% and 2.4%, weighing on the commodity-heavy FTSE 100 . Investors will closely watch a European Central Bank meeting later this week to see if policymakers have decided to step up the pace of emergency bond purchases to calm skittish markets. Meanwhile, data showed German exports unexpectedly rose in January buoyed by robust trade with China. A more comprehensive revised reading on euro zone's fourth-quarter GDP data is due at 10 a.m GMT. Among other stocks, British insurer and asset manager M&G Plc gained 6% after it posted better-than expected 2020 operating profit in its first full year as a standalone company. German automotive parts maker Continental AG fell 5.1% after it forecast 2021 outlook below expectations. (Reporting by Sruthi Shankar and Devik Jain in Bengaluru; Editing by Subhranshu Sahu) ((sruthi.shankar@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 6182 2787;)) Keywords: EUROPE STOCKS/ (UPDATE 1) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
(For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window) * STOXX 600 up 0.3% * Continental drops after downbeat 2021 outlook * Pandora reports organic sales growth in February (Adds comment, details; Updates market prices) By Sruthi Shankar and Devik Jain March 9 (Reuters) - European stocks extended gains on Tuesday after posting their best session in four months a day earlier, as gains in shares of oil and utility companies helped counter losses in miners. The continent's stock markets have come under pressure as a jump in bond yields on the back of quick vaccine rollouts and a massive U.S. fiscal package has fanned worries about a potential rise in inflation. Miners fell 1% as Dalian iron ore futures tumbled by the 10% daily limit on anti-pollution restrictions in China's top steelmaking city of Tangshan, while metal prices were also hit by a firm dollar.
(For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window) * STOXX 600 up 0.3% * Continental drops after downbeat 2021 outlook * Pandora reports organic sales growth in February (Adds comment, details; Updates market prices) By Sruthi Shankar and Devik Jain March 9 (Reuters) - European stocks extended gains on Tuesday after posting their best session in four months a day earlier, as gains in shares of oil and utility companies helped counter losses in miners. Danish jewellery maker Pandora A/S jumped 7% to the top of STOXX 600 after reporting a 12% rise in organic sales in February. German automotive parts maker Continental AG fell 5.1% after it forecast 2021 outlook below expectations.
(For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window) * STOXX 600 up 0.3% * Continental drops after downbeat 2021 outlook * Pandora reports organic sales growth in February (Adds comment, details; Updates market prices) By Sruthi Shankar and Devik Jain March 9 (Reuters) - European stocks extended gains on Tuesday after posting their best session in four months a day earlier, as gains in shares of oil and utility companies helped counter losses in miners. The continent's stock markets have come under pressure as a jump in bond yields on the back of quick vaccine rollouts and a massive U.S. fiscal package has fanned worries about a potential rise in inflation. "European market is much less tech heavy than the S&P 500, much less growth dominated, so higher bond yields are not such a negative," said Nick Nelson, head of European equity strategy at UBS.
(For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window) * STOXX 600 up 0.3% * Continental drops after downbeat 2021 outlook * Pandora reports organic sales growth in February (Adds comment, details; Updates market prices) By Sruthi Shankar and Devik Jain March 9 (Reuters) - European stocks extended gains on Tuesday after posting their best session in four months a day earlier, as gains in shares of oil and utility companies helped counter losses in miners. Danish jewellery maker Pandora A/S jumped 7% to the top of STOXX 600 after reporting a 12% rise in organic sales in February. The continent's stock markets have come under pressure as a jump in bond yields on the back of quick vaccine rollouts and a massive U.S. fiscal package has fanned worries about a potential rise in inflation.
4648.0
2021-03-08 00:00:00 UTC
Breakingviews - Capital Calls: American swaps debt for freedom
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https://www.nasdaq.com/articles/breakingviews-capital-calls%3A-american-swaps-debt-for-freedom-2021-03-08
nan
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Reuters Reuters NEW YORK (Reuters Breakingviews) - Concise insights on global finance in the Covid-19 era. ------------------------------------------------- DOWNGRADE. American Airlines badly wants to shake its Covid-19 legacy. The Texas-based airline is selling $5 billion in notes and raising $2.5 billion more by hocking its rewards program to pay the funds it received from the U.S. Treasury Department. Cheap, government-backed cash required the company to issue warrants and carried restrictions on share buybacks and executive compensation. Shortly after taking on the bailout, American’s stock looked close to worthless, according to Breakingviews calculations. Since then, the stock has more than tripled, valuing the carrier at $13 billion. The shares are now just 30% lower than when the pandemic hit. The current deal would remove the restrictions placed by the Treasury, serving as a short-term booster shot for the shares, which gained 6%. Problem is the pandemic isn’t in American’s rearview. The company continued to burn $30 million a day in the fourth quarter. A blip or two with vaccines and taxpayer money at bargain prices could look attractive again. (By Lauren Silva Laughlin) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Cheap, government-backed cash required the company to issue warrants and carried restrictions on share buybacks and executive compensation. Shortly after taking on the bailout, American’s stock looked close to worthless, according to Breakingviews calculations. The current deal would remove the restrictions placed by the Treasury, serving as a short-term booster shot for the shares, which gained 6%.
Reuters Reuters NEW YORK (Reuters Breakingviews) - Concise insights on global finance in the Covid-19 era. American Airlines badly wants to shake its Covid-19 legacy.
The Texas-based airline is selling $5 billion in notes and raising $2.5 billion more by hocking its rewards program to pay the funds it received from the U.S. Treasury Department. Cheap, government-backed cash required the company to issue warrants and carried restrictions on share buybacks and executive compensation. Shortly after taking on the bailout, American’s stock looked close to worthless, according to Breakingviews calculations.
Reuters Reuters Since then, the stock has more than tripled, valuing the carrier at $13 billion. Problem is the pandemic isn’t in American’s rearview.
4649.0
2021-03-08 00:00:00 UTC
Why Airline Shares Are Taking Off Again Today
AAL
https://www.nasdaq.com/articles/why-airline-shares-are-taking-off-again-today-2021-03-08
nan
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What happened The "reopening trade" is on again on Monday, with investors encouraged by the progress of the stimulus bill and hopes that the pandemic will soon be behind us. Airlines and other sectors that were beaten down as the virus spread last year are in rally mode, with shares of Mesa Air Group (NASDAQ: MESA) up 15%, and shares of United Airlines Holdings (NASDAQ: UAL), American Airlines Group (NASDAQ: AAL), Southwest Airlines (NYSE: LUV), Spirit Airlines (NYSE: SAVE), and JetBlue Airways (NASDAQ: JBLU) all up more than 5% apiece. So what Airline stocks were among the hardest hit in the early days of the pandemic, with lockdowns and quarantines all but wiping out demand for travel. The industry survived the crisis, and the stocks have been on the rise since late fall as the COVID-19 vaccine rollout began. The stocks got a fresh life on Monday on progress out of Washington toward finalizing a $1.9 trillion relief package. The legislation contains additional aid for the airlines, in the form of payroll guarantees, and if it works to plan, the bill should also keep the economy humming and make sure that as more people are vaccinated they are willing to spend on travel. Image source: Getty Images. American gave an "all clear" signal on Monday, announcing plans to tap private debt markets to repay government loans taken on during the pandemic. And for the first time since the early days of the pandemic, the seven-day moving average number of people screened at airports jumped above the 1 million per day mark. Mesa continues to be the big winner so far in 2021. The company operates fee-for-service planes on behalf of larger airline partners including American and United. The stock was up more than 120% for the year as of last week, but lost some of that altitude after an analyst downgrade on valuation and news of some insider sales. But the outlook still remains favorable for Mesa, and the stock on Monday made back much of what it lost last week. Now what The rationale behind the rally is sound. After more than a year locked in our homes, there is likely a lot of pent-up demand for travel. With the White House predicting there will be enough vaccine available to jab all Americans by the end of May, there are high hopes for the summer vacation season. There's still reason for caution here. As mentioned late last month, if you factor in debt, a lot of these airlines are worth more now than they were prior to the pandemic. That seems frothy, especially considering that business and international travel will likely take months if not years to return. The airlines have bruised balance sheets and uncertain labor relations, and they face questions about long-term demand trends from businesses forced to adjust during the lockdown. For those looking to invest, Spirit and Southwest appear most likely to fully recover ahead of the pack due to their lower costs and focus on leisure travel. But neither stock is the bargain it used to be. It's a good time to be patient and selective concerning airline stocks. 10 stocks we like better than Southwest Airlines When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Southwest Airlines wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of February 24, 2021 Lou Whiteman owns shares of Spirit Airlines. The Motley Fool owns shares of Spirit Airlines. The Motley Fool recommends 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.
Airlines and other sectors that were beaten down as the virus spread last year are in rally mode, with shares of Mesa Air Group (NASDAQ: MESA) up 15%, and shares of United Airlines Holdings (NASDAQ: UAL), American Airlines Group (NASDAQ: AAL), Southwest Airlines (NYSE: LUV), Spirit Airlines (NYSE: SAVE), and JetBlue Airways (NASDAQ: JBLU) all up more than 5% apiece. The legislation contains additional aid for the airlines, in the form of payroll guarantees, and if it works to plan, the bill should also keep the economy humming and make sure that as more people are vaccinated they are willing to spend on travel. American gave an "all clear" signal on Monday, announcing plans to tap private debt markets to repay government loans taken on during the pandemic.
Airlines and other sectors that were beaten down as the virus spread last year are in rally mode, with shares of Mesa Air Group (NASDAQ: MESA) up 15%, and shares of United Airlines Holdings (NASDAQ: UAL), American Airlines Group (NASDAQ: AAL), Southwest Airlines (NYSE: LUV), Spirit Airlines (NYSE: SAVE), and JetBlue Airways (NASDAQ: JBLU) all up more than 5% apiece. The Motley Fool owns shares of Spirit Airlines. The Motley Fool recommends JetBlue Airways and Southwest Airlines.
Airlines and other sectors that were beaten down as the virus spread last year are in rally mode, with shares of Mesa Air Group (NASDAQ: MESA) up 15%, and shares of United Airlines Holdings (NASDAQ: UAL), American Airlines Group (NASDAQ: AAL), Southwest Airlines (NYSE: LUV), Spirit Airlines (NYSE: SAVE), and JetBlue Airways (NASDAQ: JBLU) all up more than 5% apiece. 10 stocks we like better than Southwest Airlines When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. See the 10 stocks *Stock Advisor returns as of February 24, 2021 Lou Whiteman owns shares of Spirit Airlines.
Airlines and other sectors that were beaten down as the virus spread last year are in rally mode, with shares of Mesa Air Group (NASDAQ: MESA) up 15%, and shares of United Airlines Holdings (NASDAQ: UAL), American Airlines Group (NASDAQ: AAL), Southwest Airlines (NYSE: LUV), Spirit Airlines (NYSE: SAVE), and JetBlue Airways (NASDAQ: JBLU) all up more than 5% apiece. So what Airline stocks were among the hardest hit in the early days of the pandemic, with lockdowns and quarantines all but wiping out demand for travel. But the outlook still remains favorable for Mesa, and the stock on Monday made back much of what it lost last week.
4650.0
2021-03-08 00:00:00 UTC
American Airlines Taps Private Debt Market to Repay Government Loans
AAL
https://www.nasdaq.com/articles/american-airlines-taps-private-debt-market-to-repay-government-loans-2021-03-08
nan
nan
American Airlines Group (NASDAQ: AAL) said on Monday it will offer $5 billion in notes to pay down a loan issued by the U.S. Treasury, part of the airline's recovery following the COVID-19 crisis. The airline said it would offer $2.5 billion in notes due in 2026 and an equal amount due in 2029, while also entering into a $2.5 billion senior secured term-loan credit facility. All of the new borrowings will be secured by the company's frequent flyer program. Image source: American Airlines. Last year American and other airlines borrowed from the U.S. government under the CARES Act, which provided emergency funding to help the industry survive plummeting demand for travel. American will use part of the proceeds of this private debt offering to repay what it owes under the term loan facility with the Treasury. That borrowing is currently secured by the same collateral that will, in part, secure the new borrowings. American said the remainder of the funds will be used for general corporate purposes, which may include the repayment of other debt. The offering should be viewed by investors as fresh evidence the industry is beginning to heal. The Treasury loans were viewed as a stop-gap measure, to provide liquidity at a time when investors were unsure the airlines would be able to survive, and came with strict guidelines. American shares were up slightly in pre-market trading. The stock has gained 31% year to date. 10 stocks we like better than American Airlines Group When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and American Airlines Group wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of February 24, 2021 Lou Whiteman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
American Airlines Group (NASDAQ: AAL) said on Monday it will offer $5 billion in notes to pay down a loan issued by the U.S. Treasury, part of the airline's recovery following the COVID-19 crisis. Last year American and other airlines borrowed from the U.S. government under the CARES Act, which provided emergency funding to help the industry survive plummeting demand for travel. American will use part of the proceeds of this private debt offering to repay what it owes under the term loan facility with the Treasury.
American Airlines Group (NASDAQ: AAL) said on Monday it will offer $5 billion in notes to pay down a loan issued by the U.S. Treasury, part of the airline's recovery following the COVID-19 crisis. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. * David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and American Airlines Group wasn't one of them!
American Airlines Group (NASDAQ: AAL) said on Monday it will offer $5 billion in notes to pay down a loan issued by the U.S. Treasury, part of the airline's recovery following the COVID-19 crisis. 10 stocks we like better than American Airlines Group When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. See the 10 stocks *Stock Advisor returns as of February 24, 2021 Lou Whiteman has no position in any of the stocks mentioned.
American Airlines Group (NASDAQ: AAL) said on Monday it will offer $5 billion in notes to pay down a loan issued by the U.S. Treasury, part of the airline's recovery following the COVID-19 crisis. That borrowing is currently secured by the same collateral that will, in part, secure the new borrowings. That's right -- they think these 10 stocks are even better buys.
4651.0
2021-03-08 00:00:00 UTC
Namibia’s marine diamond miner’s production hit by COVID-19, drops 13% in 2020
AAL
https://www.nasdaq.com/articles/namibias-marine-diamond-miners-production-hit-by-covid-19-drops-13-in-2020-2021-03-08
nan
nan
WINDHOEK, March 8 (Reuters) - Debmarine Namibia, a subsidiary of Anglo American's AAL.L diamond unit De Beers, on Monday reported a 13% drop in production to 1.125 million carats last year as demand slumped during the COVID-19 pandemic. Namibia has the richest known marine diamond deposits in the world, and is among the top 10 producers of gem-quality diamonds globally. Production, however, has been severely hampered by weak demand on the international market. Debmarine's revenue fell 5% to 6.6 billion Namibian dollars ($427 million), the company said. Royalties and tax to the government also slipped 6%, to 2.1 billion Namibian dollars. Debmarine Namibia, a 50-50 joint venture company between De Beers and the Namibian government, has partnered with five African commercial banks in a $375 million financing deal to build a new diamond mining vessel. Chief Executive Otto Shikongo said work on the ship, to be known as the AMV3, was progressing well. Construction is expected to be completed in the third quarter of 2021, and production from the vessel is planned for the second quarter of 2022. The ship, with the capacity to add 500,000 carats of annual production, will be the seventh in the Debmarine Namibia joint venture’s fleet, which mines high-quality diamonds from the ocean floor using hi-tech surveying equipment. ($1 = 15.4620 Namibian dollars) (Reporting by Nyasha Nyaungwa; editing by Mfuneko Toyana and Emelia Sithole-Matarise) ((mfuneko.toyana@thomsonreuters.com; +27117753153; Reuters Messaging: mfuneko.toyana.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.
WINDHOEK, March 8 (Reuters) - Debmarine Namibia, a subsidiary of Anglo American's AAL.L diamond unit De Beers, on Monday reported a 13% drop in production to 1.125 million carats last year as demand slumped during the COVID-19 pandemic. Debmarine Namibia, a 50-50 joint venture company between De Beers and the Namibian government, has partnered with five African commercial banks in a $375 million financing deal to build a new diamond mining vessel. The ship, with the capacity to add 500,000 carats of annual production, will be the seventh in the Debmarine Namibia joint venture’s fleet, which mines high-quality diamonds from the ocean floor using hi-tech surveying equipment.
WINDHOEK, March 8 (Reuters) - Debmarine Namibia, a subsidiary of Anglo American's AAL.L diamond unit De Beers, on Monday reported a 13% drop in production to 1.125 million carats last year as demand slumped during the COVID-19 pandemic. Debmarine's revenue fell 5% to 6.6 billion Namibian dollars ($427 million), the company said. Debmarine Namibia, a 50-50 joint venture company between De Beers and the Namibian government, has partnered with five African commercial banks in a $375 million financing deal to build a new diamond mining vessel.
WINDHOEK, March 8 (Reuters) - Debmarine Namibia, a subsidiary of Anglo American's AAL.L diamond unit De Beers, on Monday reported a 13% drop in production to 1.125 million carats last year as demand slumped during the COVID-19 pandemic. Debmarine Namibia, a 50-50 joint venture company between De Beers and the Namibian government, has partnered with five African commercial banks in a $375 million financing deal to build a new diamond mining vessel. The ship, with the capacity to add 500,000 carats of annual production, will be the seventh in the Debmarine Namibia joint venture’s fleet, which mines high-quality diamonds from the ocean floor using hi-tech surveying equipment.
WINDHOEK, March 8 (Reuters) - Debmarine Namibia, a subsidiary of Anglo American's AAL.L diamond unit De Beers, on Monday reported a 13% drop in production to 1.125 million carats last year as demand slumped during the COVID-19 pandemic. Namibia has the richest known marine diamond deposits in the world, and is among the top 10 producers of gem-quality diamonds globally. Debmarine's revenue fell 5% to 6.6 billion Namibian dollars ($427 million), the company said.
4652.0
2021-03-08 00:00:00 UTC
American Airlines to offer $5 bln in notes to repay government debt
AAL
https://www.nasdaq.com/articles/american-airlines-to-offer-%245-bln-in-notes-to-repay-government-debt-2021-03-08-0
nan
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Adds details on offering March 8 (Reuters) - American Airlines Group Inc AAL.O said on Monday it intends to privately offer notes worth about $5 billion to pay down government debt. The U.S. airline, which has been hard hit by the COVID-19 pandemic, would also enter into a $2.5 billion term loan credit facility backed in part by its loyalty program AAdvantage. American Airlines said it will use the proceeds to repay the outstanding amount from the loan with the U.S. Treasury, that is currently secured by collateral, and for general corporate purposes. In January, the airline authorized a $1 billion stock sale, following an ongoing $1 billion offering launched in October to boost liquidity. The company's subsidiary American Airlines Inc and AAdvantage Loyalty IP Ltd - an indirect owned subsidiary - intend to commence the offering. (Reporting by Sanjana Shivdas in Bengaluru; Editing by Bernard Orr and Sriraj Kalluvila) ((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.
Adds details on offering March 8 (Reuters) - American Airlines Group Inc AAL.O said on Monday it intends to privately offer notes worth about $5 billion to pay down government debt. The U.S. airline, which has been hard hit by the COVID-19 pandemic, would also enter into a $2.5 billion term loan credit facility backed in part by its loyalty program AAdvantage. American Airlines said it will use the proceeds to repay the outstanding amount from the loan with the U.S. Treasury, that is currently secured by collateral, and for general corporate purposes.
Adds details on offering March 8 (Reuters) - American Airlines Group Inc AAL.O said on Monday it intends to privately offer notes worth about $5 billion to pay down government debt. American Airlines said it will use the proceeds to repay the outstanding amount from the loan with the U.S. Treasury, that is currently secured by collateral, and for general corporate purposes. In January, the airline authorized a $1 billion stock sale, following an ongoing $1 billion offering launched in October to boost liquidity.
Adds details on offering March 8 (Reuters) - American Airlines Group Inc AAL.O said on Monday it intends to privately offer notes worth about $5 billion to pay down government debt. In January, the airline authorized a $1 billion stock sale, following an ongoing $1 billion offering launched in October to boost liquidity. The company's subsidiary American Airlines Inc and AAdvantage Loyalty IP Ltd - an indirect owned subsidiary - intend to commence the offering.
Adds details on offering March 8 (Reuters) - American Airlines Group Inc AAL.O said on Monday it intends to privately offer notes worth about $5 billion to pay down government debt. The U.S. airline, which has been hard hit by the COVID-19 pandemic, would also enter into a $2.5 billion term loan credit facility backed in part by its loyalty program AAdvantage. American Airlines said it will use the proceeds to repay the outstanding amount from the loan with the U.S. Treasury, that is currently secured by collateral, and for general corporate purposes.
4653.0
2021-03-08 00:00:00 UTC
American Airlines to offer $5 bln in notes to repay government debt
AAL
https://www.nasdaq.com/articles/american-airlines-to-offer-%245-bln-in-notes-to-repay-government-debt-2021-03-08
nan
nan
March 8 (Reuters) - American Airlines Group Inc AAL.O said on Monday it intends to privately offer notes worth about $5 billion to repay government debt. The U.S. airline will use the proceeds to repay outstanding debt under the loan with the U.S. Department of the Treasury and for other purposes. (Reporting by Sanjana Shivdas in Bengaluru; Editing by Bernard Orr) ((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.
March 8 (Reuters) - American Airlines Group Inc AAL.O said on Monday it intends to privately offer notes worth about $5 billion to repay government debt. The U.S. airline will use the proceeds to repay outstanding debt under the loan with the U.S. Department of the Treasury and for other purposes. (Reporting by Sanjana Shivdas in Bengaluru; Editing by Bernard Orr) ((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.
March 8 (Reuters) - American Airlines Group Inc AAL.O said on Monday it intends to privately offer notes worth about $5 billion to repay government debt. The U.S. airline will use the proceeds to repay outstanding debt under the loan with the U.S. Department of the Treasury and for other purposes. (Reporting by Sanjana Shivdas in Bengaluru; Editing by Bernard Orr) ((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.
March 8 (Reuters) - American Airlines Group Inc AAL.O said on Monday it intends to privately offer notes worth about $5 billion to repay government debt. The U.S. airline will use the proceeds to repay outstanding debt under the loan with the U.S. Department of the Treasury and for other purposes. (Reporting by Sanjana Shivdas in Bengaluru; Editing by Bernard Orr) ((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.
March 8 (Reuters) - American Airlines Group Inc AAL.O said on Monday it intends to privately offer notes worth about $5 billion to repay government debt. The U.S. airline will use the proceeds to repay outstanding debt under the loan with the U.S. Department of the Treasury and for other purposes. (Reporting by Sanjana Shivdas in Bengaluru; Editing by Bernard Orr) ((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.
4654.0
2021-03-08 00:00:00 UTC
Banks, mining stocks lift UK shares as lockdown begins to ease
AAL
https://www.nasdaq.com/articles/banks-mining-stocks-lift-uk-shares-as-lockdown-begins-to-ease-2021-03-08
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By Shivani Kumaresan and Amal S March 8 (Reuters) - British stocks ended higher on Monday, led by gains in banks and mining stocks as optimism around a swifter economic recovery and the easing of a stringent lockdown lifted spirits. The blue-chip FTSE 100 index .FTSE ended up 1.3%, with bank stocks, HSBC Holdings HSBA.L, Lloyds Banking group LLOY.L, and Barclays Plc BARC.L, gaining between 3.6% and 4.3%. Mining stocks including Rio Tinto RIO.L, Glencore GLEN.L and Anglo American AAL.L also boosted the index on stronger metal prices. MET/L "The market is following the optimism from the first day of lockdown easing, as well a bit of good news from the U.S. stimulus ... the virus is under control, lockdown coming to an end and Brexit pretty much done and dusted," said Michael Baker, analyst at ETX Capital. The domestically focused mid-cap FTSE 250 index .FTMC rose 1.2%, with industrials and consumer discretionary stocks supporting the index. The FTSE 100 and the mid-cap index have recovered more than 36% and 70%, respectively, from a coronavirus-driven crash last year on hopes of a swift economic recovery this year. Last week, Britain's finance minister, Rishi Sunak, announced support for businesses, while on Saturday, the U.S. Senate passed a $1.9 trillion COVID-19 aid bill. The reopening of England's schools to all pupils on Monday marks one of the first steps towards scaling back virus-led lockdowns in the country, as a vaccination campaign gains steam. Meanwhile, Bank of England Governor Andrew Bailey painted a cautiously optimistic picture of Britain's economy after the COVID-19 pandemic and did not expect a big jump in inflation. Among individual movers, Pearson PSON.L was among the top performers on the FTSE 100, as the education group's new boss set out his plan for the company to grow beyond schools and colleges. Senior Plc SNR.L rose 7.2%, even as the British aircraft parts supplier swung to an annual loss, hit by COVID-19-related disruptions to flight travel and Boeing's BA.N 737 MAX crisis. (Reporting by Shivani Kumaresan and Amal S in Bengaluru Editing by Rashmi Aich and Matthew Lewis) ((Shivani.Kumaresan@thomsonreuters.com; +1 646 223 8780;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Mining stocks including Rio Tinto RIO.L, Glencore GLEN.L and Anglo American AAL.L also boosted the index on stronger metal prices. The reopening of England's schools to all pupils on Monday marks one of the first steps towards scaling back virus-led lockdowns in the country, as a vaccination campaign gains steam. Meanwhile, Bank of England Governor Andrew Bailey painted a cautiously optimistic picture of Britain's economy after the COVID-19 pandemic and did not expect a big jump in inflation.
Mining stocks including Rio Tinto RIO.L, Glencore GLEN.L and Anglo American AAL.L also boosted the index on stronger metal prices. By Shivani Kumaresan and Amal S March 8 (Reuters) - British stocks ended higher on Monday, led by gains in banks and mining stocks as optimism around a swifter economic recovery and the easing of a stringent lockdown lifted spirits. The blue-chip FTSE 100 index .FTSE ended up 1.3%, with bank stocks, HSBC Holdings HSBA.L, Lloyds Banking group LLOY.L, and Barclays Plc BARC.L, gaining between 3.6% and 4.3%.
Mining stocks including Rio Tinto RIO.L, Glencore GLEN.L and Anglo American AAL.L also boosted the index on stronger metal prices. By Shivani Kumaresan and Amal S March 8 (Reuters) - British stocks ended higher on Monday, led by gains in banks and mining stocks as optimism around a swifter economic recovery and the easing of a stringent lockdown lifted spirits. The blue-chip FTSE 100 index .FTSE ended up 1.3%, with bank stocks, HSBC Holdings HSBA.L, Lloyds Banking group LLOY.L, and Barclays Plc BARC.L, gaining between 3.6% and 4.3%.
Mining stocks including Rio Tinto RIO.L, Glencore GLEN.L and Anglo American AAL.L also boosted the index on stronger metal prices. By Shivani Kumaresan and Amal S March 8 (Reuters) - British stocks ended higher on Monday, led by gains in banks and mining stocks as optimism around a swifter economic recovery and the easing of a stringent lockdown lifted spirits. The blue-chip FTSE 100 index .FTSE ended up 1.3%, with bank stocks, HSBC Holdings HSBA.L, Lloyds Banking group LLOY.L, and Barclays Plc BARC.L, gaining between 3.6% and 4.3%.
4655.0
2021-03-05 00:00:00 UTC
Why Airline Shares Fell Today
AAL
https://www.nasdaq.com/articles/why-airline-shares-fell-today-2021-03-05
nan
nan
What happened Airline stocks have been among the big winners so far in 2021, but Friday was not a good day for the sector. Shares of American Airlines Group (NASDAQ: AAL), Delta Air Lines (NYSE: DAL), United Airlines Holdings (NASDAQ: UAL), Southwest Airlines (NYSE: LUV), Spirit Airlines (NYSE: SAVE), and JetBlue Airways (NASDAQ: JBLU) all fell by about 10% in early trading before recovering somewhat as the day went on. Image source: Getty Images. So what It was about a year ago this week when airlines first began to sound the alarm about the coronavirus, though at the time there was still some reason to hope it would be a regional issue that would only impact certain international flights. That proved not to be the case, of course, and the airlines in the months that followed saw a significant portion of their equity wiped out as travel demand bottomed out. We've come a long way since, and for much of 2021 the airlines have rallied as part of the so-called "reopening trade." The rollout of vaccines should help the economy to reopen in the months to come, and investors have been buying into airlines believing there is a lot of pent-up demand for vacation travel this summer. Airline data by YCharts On Friday that rally took a breather. There's an argument to be made the stocks have soared too high too fast, given the substantial damage done to balance sheets during the pandemic and the likely delayed recovery of international and business travel. Investors in recent days seem to be focusing as much on the risk as the potential, which is putting pressure on the entire sector. Now what The airlines are safe from default, but the valuations are stretched. We're past the point where the sector should trade in unison based on survival potential, and it's time to pick winners and losers. Spirit has been a popular choice because its low costs and focus on leisure travel should make it one of the first to recover assuming it is price-sensitive vacationers who return to the airports first. Delta and Southwest, meanwhile, have among the best balance sheets in the industry and should be able to withstand whatever added turbulence comes their way. These were two of the top airline stocks to own prior to the pandemic, and as things normalize they should be able to return to their pre-lockdown success. I'd advise more caution on the other three carriers. American came into the crisis with added debts and was less far along in transforming the business than United or Delta, and will likely need longer than most to fully recover. United has a network that has been the envy of the industry for years due to its focus on business and international travel, and has some work to do to capitalize on the near-term expected demand. JetBlue is a bit of a wildcard. The airline has a great brand and a lot of leisure-focused destinations, but it also is in the middle of a transition including ramping up an alliance with American. In recent years, JetBlue has tended to do best when travelers are less price-sensitive and more are willing to pay up for its well-regarded Mint premium product. The airlines are once again safe investments, something that seemed unlikely just a year ago. But given how much the stocks are up this year it would be wise for investors to exercise a good amount of caution if buying in right now. 10 stocks we like better than Delta Air Lines When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Delta Air Lines wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of February 24, 2021 Lou Whiteman owns shares of Delta Air Lines and Spirit Airlines. The Motley Fool owns shares of 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.
Shares of American Airlines Group (NASDAQ: AAL), Delta Air Lines (NYSE: DAL), United Airlines Holdings (NASDAQ: UAL), Southwest Airlines (NYSE: LUV), Spirit Airlines (NYSE: SAVE), and JetBlue Airways (NASDAQ: JBLU) all fell by about 10% in early trading before recovering somewhat as the day went on. So what It was about a year ago this week when airlines first began to sound the alarm about the coronavirus, though at the time there was still some reason to hope it would be a regional issue that would only impact certain international flights. The rollout of vaccines should help the economy to reopen in the months to come, and investors have been buying into airlines believing there is a lot of pent-up demand for vacation travel this summer.
Shares of American Airlines Group (NASDAQ: AAL), Delta Air Lines (NYSE: DAL), United Airlines Holdings (NASDAQ: UAL), Southwest Airlines (NYSE: LUV), Spirit Airlines (NYSE: SAVE), and JetBlue Airways (NASDAQ: JBLU) all fell by about 10% in early trading before recovering somewhat as the day went on. See the 10 stocks *Stock Advisor returns as of February 24, 2021 Lou Whiteman owns shares of Delta Air Lines and Spirit Airlines. The Motley Fool recommends Delta Air Lines, JetBlue Airways, and Southwest Airlines.
Shares of American Airlines Group (NASDAQ: AAL), Delta Air Lines (NYSE: DAL), United Airlines Holdings (NASDAQ: UAL), Southwest Airlines (NYSE: LUV), Spirit Airlines (NYSE: SAVE), and JetBlue Airways (NASDAQ: JBLU) all fell by about 10% in early trading before recovering somewhat as the day went on. See the 10 stocks *Stock Advisor returns as of February 24, 2021 Lou Whiteman owns shares of Delta Air Lines and Spirit Airlines. The Motley Fool recommends Delta Air Lines, JetBlue Airways, and Southwest Airlines.
Shares of American Airlines Group (NASDAQ: AAL), Delta Air Lines (NYSE: DAL), United Airlines Holdings (NASDAQ: UAL), Southwest Airlines (NYSE: LUV), Spirit Airlines (NYSE: SAVE), and JetBlue Airways (NASDAQ: JBLU) all fell by about 10% in early trading before recovering somewhat as the day went on. The rollout of vaccines should help the economy to reopen in the months to come, and investors have been buying into airlines believing there is a lot of pent-up demand for vacation travel this summer. See the 10 stocks *Stock Advisor returns as of February 24, 2021 Lou Whiteman owns shares of Delta Air Lines and Spirit Airlines.
4656.0
2021-03-04 00:00:00 UTC
Why Airline Shares Are Down Today
AAL
https://www.nasdaq.com/articles/why-airline-shares-are-down-today-2021-03-04
nan
nan
What happened The airlines ran into a patch of turbulence on Thursday, zapping some of the momentum the sector has enjoyed in recent weeks. It's too soon to declare the "reopening trade" over, but it wasn't a good day to be investing based on expectations that COVID-19 would soon be in the rearview mirror. Leading the way downward were shares of American Airlines Group (NASDAQ: AAL), United Airlines Holdings (NASDAQ: UAL), JetBlue Airways (NASDAQ: JBLU), and Spirit Airlines (NYSE: SAVE), with each stock down more than 5% for the day. So what For all the problems airlines had in 2020, the companies have been flying high so far this year. All four of these stocks are up at least 20% year to date, even with Thursday's sell-off, and Spirit is up nearly 40%. Image source: Getty Images. The pandemic was the reason for last year's declines, and hope that vaccines will allow us to return to normal in the months to come has been pushing the stocks higher. News from the White House that all American adults should have access to a vaccine in time for the summer travel season had airline stocks gaining ground yesterday. Airlines seemed to get caught up in the broader selling downdraft on Thursday, with the Dow Jones Industrial Average off by more than 300 points as of 3 p.m. EST. Now what There might not have been much specific news from the industry to trigger Thursday's sell-off, but it is fair to ask the question of whether the industry has come too far too fast after posting such solid gains in the first two months of the year. It seems likely that the summer vacation season might come in much better than some had feared only a few months ago. There appears to be significant pent-up demand for leisure travel, and if the vaccine is widespread, expect flights to typical tourist destinations to be full by mid-year. Spirit, with its industry-low cost structure, is set up particularly well to take advantage, and American, United, and JetBlue are all rearranging their route maps to better cater to expected demand. The fledgling recovery should also eliminate any lingering fears that airlines including American and United will face a liquidity crisis, a relief to investors. But the path forward is not clear for airlines, especially those like United and American that rely heavily on business and international travel. Those segments of the industry are likely to take much longer to return. Airlines have also taken on significant debt over the past year which will have to be paid off when revenue returns. I can justify the recovery in the shares, but it is hard to say for sure most of these stocks still have a lot of room to run. Today's decline in airline stocks is not nearly as frightening as what we were experiencing in March 2020, and I don't think it is nearly the buying opportunity, either. 10 stocks we like better than JetBlue Airways When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and JetBlue Airways wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of February 24, 2021 Lou Whiteman owns shares of Spirit Airlines. The Motley Fool owns shares of Spirit Airlines. The Motley Fool recommends JetBlue Airways. 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.
Leading the way downward were shares of American Airlines Group (NASDAQ: AAL), United Airlines Holdings (NASDAQ: UAL), JetBlue Airways (NASDAQ: JBLU), and Spirit Airlines (NYSE: SAVE), with each stock down more than 5% for the day. News from the White House that all American adults should have access to a vaccine in time for the summer travel season had airline stocks gaining ground yesterday. There appears to be significant pent-up demand for leisure travel, and if the vaccine is widespread, expect flights to typical tourist destinations to be full by mid-year.
Leading the way downward were shares of American Airlines Group (NASDAQ: AAL), United Airlines Holdings (NASDAQ: UAL), JetBlue Airways (NASDAQ: JBLU), and Spirit Airlines (NYSE: SAVE), with each stock down more than 5% for the day. News from the White House that all American adults should have access to a vaccine in time for the summer travel season had airline stocks gaining ground yesterday. The Motley Fool owns shares of Spirit Airlines.
Leading the way downward were shares of American Airlines Group (NASDAQ: AAL), United Airlines Holdings (NASDAQ: UAL), JetBlue Airways (NASDAQ: JBLU), and Spirit Airlines (NYSE: SAVE), with each stock down more than 5% for the day. News from the White House that all American adults should have access to a vaccine in time for the summer travel season had airline stocks gaining ground yesterday. See the 10 stocks *Stock Advisor returns as of February 24, 2021 Lou Whiteman owns shares of Spirit Airlines.
Leading the way downward were shares of American Airlines Group (NASDAQ: AAL), United Airlines Holdings (NASDAQ: UAL), JetBlue Airways (NASDAQ: JBLU), and Spirit Airlines (NYSE: SAVE), with each stock down more than 5% for the day. News from the White House that all American adults should have access to a vaccine in time for the summer travel season had airline stocks gaining ground yesterday. Now what There might not have been much specific news from the industry to trigger Thursday's sell-off, but it is fair to ask the question of whether the industry has come too far too fast after posting such solid gains in the first two months of the year.
4657.0
2021-03-04 00:00:00 UTC
Here’s How to Trade American Airlines Stock at its Highs
AAL
https://www.nasdaq.com/articles/heres-how-to-trade-american-airlines-stock-at-its-highs-2021-03-04
nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips The great rate scare of 2021 is trampling tech stocks and other high growth areas. But I’ll tell you who it isn’t hurting – airlines. American Airlines (NASDAQ:AAL) took off last month, and it hasn’t stopped ascending since. While it’s true, the recent market swoon has created some turbulence for AAL stock, and it’s been a tempest in a teacup compared to some of the destruction wreaked elsewhere. Source: GagliardiPhotography / Shutterstock.com Today we’re checking in on the airline industry to see how the major carriers are faring. They’ve essentially all morphed from laggards to leaders, and the relative strength has only improved in recent days. While the Nasdaq is plumbing the depths, AAL and friends continue to fly high at the top of their one-year charts. To set the stage, let’s begin with a look at the Global Jets ETF (NYSEARCA:JETS). It’s the most liquid (and thus most popular) fund that tracks the major industry players. Airline Stocks Remain Healthy Source: The thinkorswim® platform from TD Ameritrade The daily chart hosts a gorgeous uptrend that just saw a sharp uptick in momentum. And this wasn’t some retail-driven affair. Institutions were in accumulation mode, driving the volume reading to the moon. February was a banner month for shareholders, with gains echoing the profits that arrived last November following the Pfizer (NSYE:PFE) vaccine news. It’s the type of thrust that has staying power and makes you want to be a buyer of the next continuation pattern. 7 Great Dividend Stocks Outside the Energy Sector Over the past week, a bullish pennant pattern has formed. The respite is well-deserved and allows JETS to digest recent gains and build a base for its next ascent. The 20-day moving average is quickly catching up but remains more than $1 below the current share price. Some additional backing and filling would be welcome. A breakout north of $27 or a dip toward $24 would be the ideal next trade setups. On a cautionary note, the weekly chart of JETS does reveal we’re fast approaching some more serious overhead resistance around $27. This could bring supply into the market and stymie or at least slow further gains. Source: The thinkorswim® platform from TD Ameritrade The AAL Stock Chart Is Holding Firm The recovery in AAL has thus far lagged its peers. Optimists will argue it means the stock still has plenty of room to run before returning to its former heights. It has room to $25 before any longer-term resistance comes into play on the weekly time frame, so the argument has merit. Pessimists contend the relative weakness means you’re better off chasing the leaders in the space, such as Delta Airlines (NYSE:DAL) or Southwest (NYSE:LUV). The recoveries in both have been far more robust. Source: The thinkorswim® platform from TD Ameritrade Regardless of which camp you call home, there’s no denying the path of least resistance is still higher for AAL stock. As you’d expect, its price pattern is similar to that of JETS. February brought solid gains amid increasing volume. The past week has been choppy, but it’s not surprising given the stock’s overbought status. If sellers press their advantage, the 20-day moving average and potential support near $18.60 are both logical targets for buyers to emerge. I suggest setting an alert at either level. Of course, there’s a chance we continue to consolidate, and the next clean entry is a breakout over $22.50. Either way, I think the chart bears watching and, when a clean trigger presents itself, trading. Bottom Line The cheap price tag of AAL lends itself to a naked put play. You could enter now or wait for one of the two paths just mentioned to present itself. The Trade: Sell the April $18 put for around 65 cents. Consider it a bet that AAL remains above $18 for the next month. On the date of publication, Tyler Craig did not have (either directly or indirectly) any positions in the securities mentioned in this article. For a free trial to the best trading community on the planet and Tyler’s current home, click here! The post Here’s How to Trade American Airlines Stock at its Highs 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.
Source: The thinkorswim® platform from TD Ameritrade Regardless of which camp you call home, there’s no denying the path of least resistance is still higher for AAL stock. American Airlines (NASDAQ:AAL) took off last month, and it hasn’t stopped ascending since. While it’s true, the recent market swoon has created some turbulence for AAL stock, and it’s been a tempest in a teacup compared to some of the destruction wreaked elsewhere.
Source: The thinkorswim® platform from TD Ameritrade The AAL Stock Chart Is Holding Firm The recovery in AAL has thus far lagged its peers. American Airlines (NASDAQ:AAL) took off last month, and it hasn’t stopped ascending since. While it’s true, the recent market swoon has created some turbulence for AAL stock, and it’s been a tempest in a teacup compared to some of the destruction wreaked elsewhere.
Source: The thinkorswim® platform from TD Ameritrade The AAL Stock Chart Is Holding Firm The recovery in AAL has thus far lagged its peers. American Airlines (NASDAQ:AAL) took off last month, and it hasn’t stopped ascending since. While it’s true, the recent market swoon has created some turbulence for AAL stock, and it’s been a tempest in a teacup compared to some of the destruction wreaked elsewhere.
Source: The thinkorswim® platform from TD Ameritrade The AAL Stock Chart Is Holding Firm The recovery in AAL has thus far lagged its peers. American Airlines (NASDAQ:AAL) took off last month, and it hasn’t stopped ascending since. While it’s true, the recent market swoon has created some turbulence for AAL stock, and it’s been a tempest in a teacup compared to some of the destruction wreaked elsewhere.
4658.0
2021-03-04 00:00:00 UTC
The One Quote That Should Terrify United Airlines Stock Owners
AAL
https://www.nasdaq.com/articles/the-one-quote-that-should-terrify-united-airlines-stock-owners-2021-03-04
nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Back of the envelope, there’s an intriguing case for United Airlines (NASDAQ:UAL) at the moment. Back in 2019, before the novel coronavirus pandemic arrived, United earned more than $12 per share (on an adjusted basis). Right now, UAL stock trades at $54. Source: travelview / Shutterstock.com If United can get back to even half of those 2019 profits, and again receive the same low double-digit multiple that airline stocks generally received pre-pandemic, there’s obvious upside. That said, something like 11 times $6 in earnings per share (EPS) suggests healthy upside from current levels. And given that United, after January’s fourth-quarter report, guided for 2023 EBITDA (earnings before interest, taxes, depreciation and amortization) margins to exceed those of 2019, it may not take that long for EPS to get back to $6 or better. Indeed, Wall Street consensus projects about $7 for 2023 EPS, albeit with a huge range ($3 to $13). Obviously, investors can and will create more sophisticated, more individualized and more detailed models, but the core point holds. Specific earnings targets aside, there’s likely a significant amount of pent-up demand that could strengthen near-term results. That demand may drive not only ticket sales, but pricing as consumers splurge on long-awaited vacations. All told, there’s an admittedly intriguing case for the sector — but there are risks as well. More importantly, for UAL stock in particular, one clear qualitative concern stands out. It’s a risk highlighted by a passage from last month’s Q4 conference call. 7 of the Best Warren Buffett Stock Picks of the Past Decade The passage seems innocent enough at first read. But understanding what it truly means shows the core risk to UAL stock and the entire sector — a risk that keeps raising its ugly head across the industry. Prior to the Pandemic for UAL Stock “This crisis has afforded us a number of valuable lessons about the balance sheet and capital allocation. Before COVID, we modeled our worst-case scenarios based on the financial impact of 9/11, followed by a recession. It turns out we weren’t even close. Going forward, we will focus on being ready for sustained destruction of global air travel demand like we are seeing today.” That quote comes from United chief financial officer Gerald Laderman on United’s fourth-quarter conference call back in January. It’s a truly stunning admission. United’s own CFO, who has been with the company for more than three decades, and who received $3.6 million in total compensation in 2019 (2020 figures haven’t been released yet), never bothered to model what a global pandemic would do to United’s business. That’s despite the fact that a global outbreak of disease was twice mentioned in the “Risk Factors” section of United’s Form 10-K filed in February 2019, long before the novel coronavirus pandemic. And it’s despite the fact that United itself had to cut flights when SARS hit back in 2003. That said, United and Laderman simply ignored the risk. It’s fair to argue that United can’t run its business based on the risk of a pandemic, but even in contemplating “worst-case scenarios,” Laderman never bothered to quantify that risk. Thus, any investor even considering UAL stock should remember that the same executive is in charge of quantifying risks going forward — in an industry that historically has proven to be among the riskiest on Earth. Does It Matter? Let’s be fair: Stock prices are based on what will happen in the future, not what happened in the past. Laderman claims that United has learned a “number of valuable lessons” from the pandemic. Going forward, United will make sure it is better prepared for a pandemic or anything else that causes “sustained destruction of global air travel,” as Laderman put it. However, the effects of the modeling error aren’t just in the past. They affect the future as well. Between 2016 and 2019, United repurchased some $6 billion worth of stock, according to filings with the Securities and Exchange Commission. That capital could have gone to paying down debt. It could have been kept on the balance sheet to cushion the impact of a recession (which, even before the pandemic, seemed ‘due’ at some point). Neither happened. United did nothing to de-risk its business. So United instead had to spend 2020 raising whatever financing it could. Total debt increased $12 billion over the course of the year (to be fair, the cash and short-term investments balance increased nearly $7 billion as well). At Feb. 18, 2020, 248 million million shares of UAL stock were outstanding. At Feb. 24 of this year, 318.5 million. Even if you assume United’s operating profit can return to 2019 levels, that profit is spread across nearly 30% more shares. There’s another $800 million or so in added interest expense, based on the price of last year’s major bond issue. After-tax, that’s nearly $2 per share. Suddenly, the path for United simply getting back to 2019’s $12 per share in EPS looks much, much tougher. Lessons and UAL Stock Over the years, airlines have promised that, this time, they’ve learned their lesson. And investors have believed them. In fact, at the start of last year, I believed them. I was in decent company: so did Warren Buffett and Berkshire Hathaway (NYSE:BRK.A,NYSE:BRK.B). At a certain point, that trust simply gets broken. The Covid-19 pandemic seems like that point — and it wasn’t just United that whiffed. American Airlines (NASDAQ:AAL) chief executive officer Doug Parker infamously said in 2017 that “I don’t think we’re ever going to lose money again.” In fact, a Bloomberg analysis showed that the industry as a whole over a decade spent a staggering 96% of its free cash flow on stock buybacks. Maybe this time is different. Maybe the airlines, finally, are going to run their business in a more conservative way. That seems like a risky bet to take, however. The industry has struggled not only over the past year-plus but the past few decades. United itself filed for bankruptcy back in 2002; Southwest Airlines (NYSE:LUV) is the only major carrier that has never done so. And if the non-Southwest airlines want to prove that this time is different, some accountability would be useful. There’s been none. Laderman still has his job (and failing to model a massive risk should be a fireable offense). Parker still has his. In short, U.S. airlines, United included, don’t seem all that upset about the massive destruction of investor capital over the last 14 months. That makes it hard to believe they’re truly doing everything in the power to prevent more capital from being lost once again. On the date of publication, Vince Martin did not have (either directly or indirectly) any positions in the securities mentioned in this article. After spending time at a retail brokerage, Vince Martin has covered the financial industry for close to a decade for InvestorPlace.com and other outlets. The post The One Quote That Should Terrify United Airlines Stock Owners appeared first on InvestorPlace. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
American Airlines (NASDAQ:AAL) chief executive officer Doug Parker infamously said in 2017 that “I don’t think we’re ever going to lose money again.” In fact, a Bloomberg analysis showed that the industry as a whole over a decade spent a staggering 96% of its free cash flow on stock buybacks. And given that United, after January’s fourth-quarter report, guided for 2023 EBITDA (earnings before interest, taxes, depreciation and amortization) margins to exceed those of 2019, it may not take that long for EPS to get back to $6 or better. That’s despite the fact that a global outbreak of disease was twice mentioned in the “Risk Factors” section of United’s Form 10-K filed in February 2019, long before the novel coronavirus pandemic.
American Airlines (NASDAQ:AAL) chief executive officer Doug Parker infamously said in 2017 that “I don’t think we’re ever going to lose money again.” In fact, a Bloomberg analysis showed that the industry as a whole over a decade spent a staggering 96% of its free cash flow on stock buybacks. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Back of the envelope, there’s an intriguing case for United Airlines (NASDAQ:UAL) at the moment. Going forward, we will focus on being ready for sustained destruction of global air travel demand like we are seeing today.” That quote comes from United chief financial officer Gerald Laderman on United’s fourth-quarter conference call back in January.
American Airlines (NASDAQ:AAL) chief executive officer Doug Parker infamously said in 2017 that “I don’t think we’re ever going to lose money again.” In fact, a Bloomberg analysis showed that the industry as a whole over a decade spent a staggering 96% of its free cash flow on stock buybacks. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Back of the envelope, there’s an intriguing case for United Airlines (NASDAQ:UAL) at the moment. Going forward, we will focus on being ready for sustained destruction of global air travel demand like we are seeing today.” That quote comes from United chief financial officer Gerald Laderman on United’s fourth-quarter conference call back in January.
American Airlines (NASDAQ:AAL) chief executive officer Doug Parker infamously said in 2017 that “I don’t think we’re ever going to lose money again.” In fact, a Bloomberg analysis showed that the industry as a whole over a decade spent a staggering 96% of its free cash flow on stock buybacks. That said, United and Laderman simply ignored the risk. It’s fair to argue that United can’t run its business based on the risk of a pandemic, but even in contemplating “worst-case scenarios,” Laderman never bothered to quantify that risk.
4659.0
2021-03-03 00:00:00 UTC
American Airlines to launch first employee vaccine site at Chicago's O'Hare
AAL
https://www.nasdaq.com/articles/american-airlines-to-launch-first-employee-vaccine-site-at-chicagos-ohare-2021-03-03
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March 3 (Reuters) - American Airlines AAL.O will on Thursday begin providing employees with a limited supply of Johnson & Johnson's JNJ.N single-shot COVID-19 vaccine at Chicago's O'Hare airport, according to a letter sent to Chicago-based employees. An American Airlines spokeswoman said O'Hare is the first airport where it is rolling out employee vaccine distributions, which will be administered by Premise Health. (Reporting by Tracy Rucinski) ((tracy.rucinski@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.
March 3 (Reuters) - American Airlines AAL.O will on Thursday begin providing employees with a limited supply of Johnson & Johnson's JNJ.N single-shot COVID-19 vaccine at Chicago's O'Hare airport, according to a letter sent to Chicago-based employees. An American Airlines spokeswoman said O'Hare is the first airport where it is rolling out employee vaccine distributions, which will be administered by Premise Health. (Reporting by Tracy Rucinski) ((tracy.rucinski@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.
March 3 (Reuters) - American Airlines AAL.O will on Thursday begin providing employees with a limited supply of Johnson & Johnson's JNJ.N single-shot COVID-19 vaccine at Chicago's O'Hare airport, according to a letter sent to Chicago-based employees. An American Airlines spokeswoman said O'Hare is the first airport where it is rolling out employee vaccine distributions, which will be administered by Premise Health. (Reporting by Tracy Rucinski) ((tracy.rucinski@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.
March 3 (Reuters) - American Airlines AAL.O will on Thursday begin providing employees with a limited supply of Johnson & Johnson's JNJ.N single-shot COVID-19 vaccine at Chicago's O'Hare airport, according to a letter sent to Chicago-based employees. An American Airlines spokeswoman said O'Hare is the first airport where it is rolling out employee vaccine distributions, which will be administered by Premise Health. (Reporting by Tracy Rucinski) ((tracy.rucinski@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.
March 3 (Reuters) - American Airlines AAL.O will on Thursday begin providing employees with a limited supply of Johnson & Johnson's JNJ.N single-shot COVID-19 vaccine at Chicago's O'Hare airport, according to a letter sent to Chicago-based employees. An American Airlines spokeswoman said O'Hare is the first airport where it is rolling out employee vaccine distributions, which will be administered by Premise Health. (Reporting by Tracy Rucinski) ((tracy.rucinski@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.
4660.0
2021-03-03 00:00:00 UTC
Why American Airlines Stock Gained Altitude in February
AAL
https://www.nasdaq.com/articles/why-american-airlines-stock-gained-altitude-in-february-2021-03-03
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What happened Shares of American Airlines Group (NASDAQ: AAL) soared 22% higher in February, according to data provided by S&P Global Market Intelligence, as investors continue to gain confidence that the worst of the pandemic is now behind us. So what American and other airline stocks had a difficult time in 2020. The pandemic brought global travel to a halt and caused airlines to burn through billions in cash as revenue dried up. The industry survived the worst of the crisis, thanks to both government assistance and private fundraising efforts, and investors are growing increasingly optimistic that better days are ahead. American shares rallied in February on continued good news about COVID-19 vaccines and growing hope that leisure travelers will return in time for the summer travel season. Image source: American Airlines. American came into the crisis more vulnerable than most due to its industry-high debt level, and through much of 2020 was seen by some as a bankruptcy risk. The stock fell further than most during the bad times, and now has more recovery potential as conditions improve. Now what I think the market is right in assuming the worst is over and conditions for airlines should improve in the months to come. Still, there is some risk that investors are getting ahead of themselves when it comes to American. AAL Enterprise Value, stock price data by YCharts The airline's shares are still off 24% from the beginning of 2020, but the company's enterprise value (a measure of total market capitalization plus debt) is up big during that period due to all the added debt American has taken on. It's hard to argue the pandemic has made American a better investment worthy of a higher valuation. I fear that investors are focused on the share price and not accounting for the added debt which will have to be managed for years after travelers return. Even if you are bullish on airlines, it would pay to be cautious about the stock right now. 10 stocks we like better than American Airlines Group When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and American Airlines Group wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of February 24, 2021 Lou Whiteman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
What happened Shares of American Airlines Group (NASDAQ: AAL) soared 22% higher in February, according to data provided by S&P Global Market Intelligence, as investors continue to gain confidence that the worst of the pandemic is now behind us. AAL Enterprise Value, stock price data by YCharts The airline's shares are still off 24% from the beginning of 2020, but the company's enterprise value (a measure of total market capitalization plus debt) is up big during that period due to all the added debt American has taken on. The pandemic brought global travel to a halt and caused airlines to burn through billions in cash as revenue dried up.
What happened Shares of American Airlines Group (NASDAQ: AAL) soared 22% higher in February, according to data provided by S&P Global Market Intelligence, as investors continue to gain confidence that the worst of the pandemic is now behind us. AAL Enterprise Value, stock price data by YCharts The airline's shares are still off 24% from the beginning of 2020, but the company's enterprise value (a measure of total market capitalization plus debt) is up big during that period due to all the added debt American has taken on. 10 stocks we like better than American Airlines Group When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen.
AAL Enterprise Value, stock price data by YCharts The airline's shares are still off 24% from the beginning of 2020, but the company's enterprise value (a measure of total market capitalization plus debt) is up big during that period due to all the added debt American has taken on. What happened Shares of American Airlines Group (NASDAQ: AAL) soared 22% higher in February, according to data provided by S&P Global Market Intelligence, as investors continue to gain confidence that the worst of the pandemic is now behind us. 10 stocks we like better than American Airlines Group When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen.
What happened Shares of American Airlines Group (NASDAQ: AAL) soared 22% higher in February, according to data provided by S&P Global Market Intelligence, as investors continue to gain confidence that the worst of the pandemic is now behind us. AAL Enterprise Value, stock price data by YCharts The airline's shares are still off 24% from the beginning of 2020, but the company's enterprise value (a measure of total market capitalization plus debt) is up big during that period due to all the added debt American has taken on. Still, there is some risk that investors are getting ahead of themselves when it comes to American.
4661.0
2021-03-03 00:00:00 UTC
Why American Airlines Stock Is Up Today
AAL
https://www.nasdaq.com/articles/why-american-airlines-stock-is-up-today-2021-03-03
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What happened The White House provided an upbeat vaccine forecast on Tuesday night, pushing airline stocks higher on Wednesday. American Airlines Holdings (NASDAQ: AAL) is leading the charge, up as much as 5% on Wednesday. So what American and other airlines suffered through a difficult year in 2020. The pandemic caused demand for air travel to crater, causing the entire industry to lose money last year. It's hard to make a bull case for the industry without the pandemic ending, and the stocks have soared higher in recent weeks on steady progress rolling out vaccines. Image source: American Airlines. The news got even better on Tuesday. President Joe Biden said the U.S. will have enough vaccine supply for every American adult to get a jab by the end of May. That's two months ahead of previous estimates. Three weeks ago, I announced we would have enough vaccine supply for all Americans by the end of July. Now, with our efforts to ramp up production, we will have enough vaccines for every American by the end of May. — President Biden (@POTUS) March 2, 2021
American Airlines Holdings (NASDAQ: AAL) is leading the charge, up as much as 5% on Wednesday. What happened The White House provided an upbeat vaccine forecast on Tuesday night, pushing airline stocks higher on Wednesday. It's hard to make a bull case for the industry without the pandemic ending, and the stocks have soared higher in recent weeks on steady progress rolling out vaccines.
American Airlines Holdings (NASDAQ: AAL) is leading the charge, up as much as 5% on Wednesday. What happened The White House provided an upbeat vaccine forecast on Tuesday night, pushing airline stocks higher on Wednesday. It's hard to make a bull case for the industry without the pandemic ending, and the stocks have soared higher in recent weeks on steady progress rolling out vaccines.
American Airlines Holdings (NASDAQ: AAL) is leading the charge, up as much as 5% on Wednesday. What happened The White House provided an upbeat vaccine forecast on Tuesday night, pushing airline stocks higher on Wednesday. It's hard to make a bull case for the industry without the pandemic ending, and the stocks have soared higher in recent weeks on steady progress rolling out vaccines.
American Airlines Holdings (NASDAQ: AAL) is leading the charge, up as much as 5% on Wednesday. What happened The White House provided an upbeat vaccine forecast on Tuesday night, pushing airline stocks higher on Wednesday. President Joe Biden said the U.S. will have enough vaccine supply for every American adult to get a jab by the end of May.
4662.0
2021-03-02 00:00:00 UTC
Chile's Codelco copper output jumps in January, Escondida dips
AAL
https://www.nasdaq.com/articles/chiles-codelco-copper-output-jumps-in-january-escondida-dips-2021-03-02
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By Fabian Cambero SANTIAGO, March 2 (Reuters) - Copper production at Chile's largest mines was mixed in January, as strong output at state mining giant Codelco was offset by weaker results at the huge Escondida mine, official figures released on Tuesday showed The state-run Chilean Copper Commission (Cochilco) reported that production by Codelco, the world's largest miner of the red metal, rose 19.4% year-on-year to 142,000 tonnes in the month. Meanwhile at Escondida, the world's largest copper deposit controlled by BHP BHP.AX, production fell 16.1% year-on-year to 84,700 tonnes. Collahuasi - a partnership between Glencore GLEN.N and Anglo American AAL.Lalong with Japanese companies - posted a 6.5% year-on-year rise in production to 57,000 tonnes. Chile's total copper output edged down 0.7% year-on-year in the month to 457,100 tons, Cochilco added. (Reporting by Fabian Cambero; Writing by Adam Jourdan Editing by Marguerita Choy) ((adam.jourdan@thomsonreuters.com; +54 1155446882; Reuters Messaging: adam.jourdan.thomsonreuters.com@reuters.net)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Collahuasi - a partnership between Glencore GLEN.N and Anglo American AAL.Lalong with Japanese companies - posted a 6.5% year-on-year rise in production to 57,000 tonnes. By Fabian Cambero SANTIAGO, March 2 (Reuters) - Copper production at Chile's largest mines was mixed in January, as strong output at state mining giant Codelco was offset by weaker results at the huge Escondida mine, official figures released on Tuesday showed The state-run Chilean Copper Commission (Cochilco) reported that production by Codelco, the world's largest miner of the red metal, rose 19.4% year-on-year to 142,000 tonnes in the month. Meanwhile at Escondida, the world's largest copper deposit controlled by BHP BHP.AX, production fell 16.1% year-on-year to 84,700 tonnes.
Collahuasi - a partnership between Glencore GLEN.N and Anglo American AAL.Lalong with Japanese companies - posted a 6.5% year-on-year rise in production to 57,000 tonnes. By Fabian Cambero SANTIAGO, March 2 (Reuters) - Copper production at Chile's largest mines was mixed in January, as strong output at state mining giant Codelco was offset by weaker results at the huge Escondida mine, official figures released on Tuesday showed The state-run Chilean Copper Commission (Cochilco) reported that production by Codelco, the world's largest miner of the red metal, rose 19.4% year-on-year to 142,000 tonnes in the month. Meanwhile at Escondida, the world's largest copper deposit controlled by BHP BHP.AX, production fell 16.1% year-on-year to 84,700 tonnes.
Collahuasi - a partnership between Glencore GLEN.N and Anglo American AAL.Lalong with Japanese companies - posted a 6.5% year-on-year rise in production to 57,000 tonnes. By Fabian Cambero SANTIAGO, March 2 (Reuters) - Copper production at Chile's largest mines was mixed in January, as strong output at state mining giant Codelco was offset by weaker results at the huge Escondida mine, official figures released on Tuesday showed The state-run Chilean Copper Commission (Cochilco) reported that production by Codelco, the world's largest miner of the red metal, rose 19.4% year-on-year to 142,000 tonnes in the month. Meanwhile at Escondida, the world's largest copper deposit controlled by BHP BHP.AX, production fell 16.1% year-on-year to 84,700 tonnes.
Collahuasi - a partnership between Glencore GLEN.N and Anglo American AAL.Lalong with Japanese companies - posted a 6.5% year-on-year rise in production to 57,000 tonnes. By Fabian Cambero SANTIAGO, March 2 (Reuters) - Copper production at Chile's largest mines was mixed in January, as strong output at state mining giant Codelco was offset by weaker results at the huge Escondida mine, official figures released on Tuesday showed The state-run Chilean Copper Commission (Cochilco) reported that production by Codelco, the world's largest miner of the red metal, rose 19.4% year-on-year to 142,000 tonnes in the month. Meanwhile at Escondida, the world's largest copper deposit controlled by BHP BHP.AX, production fell 16.1% year-on-year to 84,700 tonnes.
4663.0
2021-03-02 00:00:00 UTC
Angola seeks to boost diamond output, negotiating with major players
AAL
https://www.nasdaq.com/articles/angola-seeks-to-boost-diamond-output-negotiating-with-major-players-2021-03-02
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By Sergio Goncalves LISBON, March 2 (Reuters) - Angola plans to boost diamond mining and open a new large mine in the east, aiming to produce 5.7 million carats there in 2023, or more than half of its total output last year, Mineral Resources and Petroleum minister Diamantino Azevedo said. In an interview with Reuters, he also said the state-owned diamond company Endiama had been "instructed to negotiate with the biggest companies in the mining world to invest in the diamond subsector" in other projects, without specifying. Asked if Angola was negotiating specifically with diamond majors De Beers Group and Rio Tinto RIO.L to enter its mining sector, he said: "I confirm ... The latest information we have is that the negotiations are going at a good pace." Angola - the world's sixth-largest producer - produced 8 million carats in 2020, 23% below the initial plan and down from 2019's 9.4 million carats due to the global economic meltdown from the COVID-19 pandemic, Azevedo said. But "the prospects for 2021 are encouraging" with two new projects due to start producing in the second quarter, and Angola targeting a total output of 10.1 million carats in 2022. Despite the "unfavourable situation due to the lockdowns caused by the COVID-19 pandemic, we are working to accelerate the start of production in Luaxe", he said. The project in the eastern province of Lunda-Sul is close to the Catoca mine, now responsible for 70% of Angola's diamond production. It will begin pilot production this year. "We are committed to transforming the Luaxe deposit in 2022 into a structured and organised conventional mine, expecting production of about 5.7 million carats in 2023," he said. With 41% each, Angolan state-owned company Endiama and Russia's Alrosa are the largest shareholders of Sociedade Mineira de Catoca (SMC), owner of the Catoca mine. SMC owns 50.5% of the Luaxe project, while Endiama and Alrosa each hold another 8%. "Although Luaxe is in attractive project for any investor, its shareholding structure has already been established," Azevedo said, without elaborating further. (Additional reporting by Noah Browning, editing by Andrei Khalip and Philippa Fletcher) ((sergio.goncalves@thomsonreuters.com; +351213509204; Reuters Messaging: sergio.goncalves.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.
Asked if Angola was negotiating specifically with diamond majors De Beers Group and Rio Tinto RIO.L to enter its mining sector, he said: "I confirm ... But "the prospects for 2021 are encouraging" with two new projects due to start producing in the second quarter, and Angola targeting a total output of 10.1 million carats in 2022. "We are committed to transforming the Luaxe deposit in 2022 into a structured and organised conventional mine, expecting production of about 5.7 million carats in 2023," he said.
In an interview with Reuters, he also said the state-owned diamond company Endiama had been "instructed to negotiate with the biggest companies in the mining world to invest in the diamond subsector" in other projects, without specifying. Angola - the world's sixth-largest producer - produced 8 million carats in 2020, 23% below the initial plan and down from 2019's 9.4 million carats due to the global economic meltdown from the COVID-19 pandemic, Azevedo said. With 41% each, Angolan state-owned company Endiama and Russia's Alrosa are the largest shareholders of Sociedade Mineira de Catoca (SMC), owner of the Catoca mine.
By Sergio Goncalves LISBON, March 2 (Reuters) - Angola plans to boost diamond mining and open a new large mine in the east, aiming to produce 5.7 million carats there in 2023, or more than half of its total output last year, Mineral Resources and Petroleum minister Diamantino Azevedo said. In an interview with Reuters, he also said the state-owned diamond company Endiama had been "instructed to negotiate with the biggest companies in the mining world to invest in the diamond subsector" in other projects, without specifying. Angola - the world's sixth-largest producer - produced 8 million carats in 2020, 23% below the initial plan and down from 2019's 9.4 million carats due to the global economic meltdown from the COVID-19 pandemic, Azevedo said.
Angola - the world's sixth-largest producer - produced 8 million carats in 2020, 23% below the initial plan and down from 2019's 9.4 million carats due to the global economic meltdown from the COVID-19 pandemic, Azevedo said. But "the prospects for 2021 are encouraging" with two new projects due to start producing in the second quarter, and Angola targeting a total output of 10.1 million carats in 2022. With 41% each, Angolan state-owned company Endiama and Russia's Alrosa are the largest shareholders of Sociedade Mineira de Catoca (SMC), owner of the Catoca mine.
4664.0
2021-03-02 00:00:00 UTC
U.S airlines remain in 'dire straits,' need new government assistance -industry group
AAL
https://www.nasdaq.com/articles/u.s-airlines-remain-in-dire-straits-need-new-government-assistance-industry-group-2021-03
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By David Shepardson and Tracy Rucinski WASHINGTON, March 2 (Reuters) - The head of a group representing major U.S. passenger airlines and a senior union official made the case to lawmakers on Tuesday for a third round of federal government assistance, according to testimony seen by Reuters. Since March 2020, Congress has awarded passenger and cargo airlines, airports and contractors nearly $90 billion in government assistance and low-cost loans, including two prior rounds of payroll assistance for U.S. passenger airlines totaling $40 billion. The $1.9 trillion COVID-19 relief package approved by the U.S. House last week includes another $14 billion for passenger airlines to keep workers on payrolls for an additional six months. It awaits action by the U.S. Senate. "We are still struggling and in dire straits," Nick Calio, who heads Airlines for America, a trade group representing American Airlines AAL.O, Delta Air Lines DAL.N, United Airlines UAL.O and others, said in testimony before the House Transportation and Infrastructure's aviation subcommittee. "We were hoping it would be better by now." He warned that without the new round of assistance tens of thousands of aviation workers will "lose their jobs — or experience reductions to wages and benefits — effective April 1." In 2020, U.S. airline passenger traffic fell by 60% to 368 million passengers, the lowest since 1984, and reported pre-tax losses of $46 billion. They continue to burn "an estimated $150 million of cash every day," Calio said. The current COVID-19 bill also includes $8 billion for airports and concessionaires and $1 billion for airline contractors. Joseph DePete, president of the Air Line Pilots Association, told lawmakers that "dismal long-term booking commitments and the near absence of business travel demand is leaving some carriers with too little certainty to reactivate and retrain furloughed or otherwise inactive pilots." Representative Peter DeFazio, who chairs the Transportation committee, said he is "hoping by September 30 we are not going to need another extension" of airline payroll assistance. (Reporting by David Shepardson and Tracy Rucinski; Editing by Gerry Doyle and Dan Grebler) ((tracy.rucinski@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.
"We are still struggling and in dire straits," Nick Calio, who heads Airlines for America, a trade group representing American Airlines AAL.O, Delta Air Lines DAL.N, United Airlines UAL.O and others, said in testimony before the House Transportation and Infrastructure's aviation subcommittee. The $1.9 trillion COVID-19 relief package approved by the U.S. House last week includes another $14 billion for passenger airlines to keep workers on payrolls for an additional six months. He warned that without the new round of assistance tens of thousands of aviation workers will "lose their jobs — or experience reductions to wages and benefits — effective April 1."
"We are still struggling and in dire straits," Nick Calio, who heads Airlines for America, a trade group representing American Airlines AAL.O, Delta Air Lines DAL.N, United Airlines UAL.O and others, said in testimony before the House Transportation and Infrastructure's aviation subcommittee. By David Shepardson and Tracy Rucinski WASHINGTON, March 2 (Reuters) - The head of a group representing major U.S. passenger airlines and a senior union official made the case to lawmakers on Tuesday for a third round of federal government assistance, according to testimony seen by Reuters. Since March 2020, Congress has awarded passenger and cargo airlines, airports and contractors nearly $90 billion in government assistance and low-cost loans, including two prior rounds of payroll assistance for U.S. passenger airlines totaling $40 billion.
"We are still struggling and in dire straits," Nick Calio, who heads Airlines for America, a trade group representing American Airlines AAL.O, Delta Air Lines DAL.N, United Airlines UAL.O and others, said in testimony before the House Transportation and Infrastructure's aviation subcommittee. By David Shepardson and Tracy Rucinski WASHINGTON, March 2 (Reuters) - The head of a group representing major U.S. passenger airlines and a senior union official made the case to lawmakers on Tuesday for a third round of federal government assistance, according to testimony seen by Reuters. Since March 2020, Congress has awarded passenger and cargo airlines, airports and contractors nearly $90 billion in government assistance and low-cost loans, including two prior rounds of payroll assistance for U.S. passenger airlines totaling $40 billion.
"We are still struggling and in dire straits," Nick Calio, who heads Airlines for America, a trade group representing American Airlines AAL.O, Delta Air Lines DAL.N, United Airlines UAL.O and others, said in testimony before the House Transportation and Infrastructure's aviation subcommittee. By David Shepardson and Tracy Rucinski WASHINGTON, March 2 (Reuters) - The head of a group representing major U.S. passenger airlines and a senior union official made the case to lawmakers on Tuesday for a third round of federal government assistance, according to testimony seen by Reuters. Since March 2020, Congress has awarded passenger and cargo airlines, airports and contractors nearly $90 billion in government assistance and low-cost loans, including two prior rounds of payroll assistance for U.S. passenger airlines totaling $40 billion.
4665.0
2021-03-02 00:00:00 UTC
FOCUS-U.S. budget airlines plot pandemic breakthrough
AAL
https://www.nasdaq.com/articles/focus-u.s.-budget-airlines-plot-pandemic-breakthrough-2021-03-02
nan
nan
By Tracy Rucinski PALM COAST, Fla., March 2 (Reuters) - The COVID-19 pandemic has reshaped the global travel landscape and U.S. no-frills carriers are pouncing. As legacy airlines shrink to contain costs, budget carriers Spirit Airlines SAVE.N, Allegiant Travel ALGT.O and privately-owned Frontier Airlines are resuming pilot hiring and expanding networks to seize turf dominated by larger rivals. The three airlines' combined U.S. market share, which barely topped 10% before the pandemic, could grow by 10 percentage points this year alone, said René Armas Maes of UK-based consultancy MIDAS Aviation. "Ultra low-cost carriers want to attack head-to-head; they believe they're in a better position to rebuild travel demand," he said. Las Vegas-based Allegiant has told prospective pilots whose hiring was halted as the pandemic unfolded: "We have recalled all of our furloughed pilots and are now planning for exciting growth opportunities." Spirit and Frontier have posted pilot job ads and are taking delivery of Airbus AIR.PA A320neo jets that could open longer routes, including coast-to-coast flying traditionally controlled by legacy, or full-service, carriers. By contrast, American Airlines AAL.O has gone from hiring 100 pilots a month before the pandemic to threatening 1,850 furloughs without fresh government assistance on labor costs. Allegiant also stands to benefit if Congress approves a third round of COVID-19 payroll relief for U.S. airlines, but "would be just fine without it," Chief Financial Officer Greg Anderson told Reuters. "The leading indicators suggest that there is a nice growth trajectory for Allegiant," said Anderson, citing Google searches, indices that track changes in city populations and infection and vaccination trends from the Institute for Health Metrics and Evaluation. He said customer surveys also show an increased preference for smaller airports and non-stop flights, cornerstones of budget carriers' business models. TRIAL AND ERROR Ultra low-cost carriers, or ULCCs, offer a no-frills experience at rock-bottom fares and charge heavily for extras like bags. They wage fare wars and are pervasive in Europe's fragmented market but have lagged in the United States. ULCCs are a tier below carriers like Southwest Airlines LUV.N, which pioneered the low-cost concept in the 1970s and has grown to become the leading domestic airline. It provides free beverages and checked bags but keeps costs low in part by flying a single fleet-type of Boeing BA.N 737s. U.S. mainline legacy carriers American, Delta Air Lines DAL.N and United Airlines UAL.O have diverse fleets that include expensive wide-body jets geared for the kind of business and international travel that has suffered most in the pandemic. American's unit costs excluding fuel, a key metric of efficiency, were $0.18 per available mile in 2020, more than double that of budget rivals like Allegiant, according to data compiled by financial services firm Raymond James. This means Allegiant, which primarily uses second-hand planes and only flies on peak travel days like weekends, can more easily profit on discount fares. And whereas legacy carriers use a hub-and-spoke network that shuttles people through costly big-city airports, the ULCC business model is based on point-to-point travel to smaller airports where they outsource much of their infrastructure. Allegiant's fixed costs account for just around a quarter of its total. That flexibility helps budget carriers open new routes on a trial-and-error basis. During the pandemic, for example, they have pivoted toward beach and mountain destinations. "Then if the route is not performing, they won't hesitate to shut it down," said George Dimitroff of consultants Ascend by Cirium. But there are risks. American, United and Delta have also shifted flights during the pandemic to pick up leisure demand and their market power and geographical reach remain formidable. Competing with them can lure upstart airlines into relaxing cost discipline - a move described as a "path to hell" by budget airlines entrepreneur Bill Franke, who championed the ULCC model. Together the three large airlines control around 60% of domestic travel and could chase away rivals on smaller routes if they choose, industry critics said. But they are more burdened by debt than the ULCCs and continue to burn through millions of dollars every day, hampering their ability to grow, the critics said. BUDGET SHIFT Beyond low fares, experts said the pandemic has given budget carriers a fresh argument for previously wary customers. Traditional airline perks like catering services have lost their luster in an era of masks, and budget airplanes feature the same hospital-grade aircraft filtration systems as others. And they could benefit from more cost-conscious small and medium sized businesses changing travel policies to favor lower-cost airlines, albeit constrained by their more limited flying through large hubs. "More price-sensitive travel will be the new normal for the next couple of years at least," Armas Maes said. Even so, today's outsiders will face a competitive cycle. After the last downturn, low-cost carrier JetBlue Airways JBLU.O grabbed market share from American on the U.S. east coast. Now it is grappling with competition from ULCCs and is teaming up with its old rival. No-frills tycoon Franke says low air fares no panacea for COVID-19 crisis U.S. proposes to waive minimum flight requirements for airlines until March 2021 U.S. airline CEOs to meet with White House on cutting carbon footprint U.S. Treasury starts distributing $15 bln in payroll aid to airlines American Airlines sending 13,000 furlough warnings as pandemic pain persists U.S. House committee approves another $14 bln for pandemic-hit airlines FACTBOX-U.S. airlines raise cash burn estimates as COVID-19 pain continues (Reporting by Tracy Rucinski; editing by Barbara Lewis and Nick Zieminski) ((tracy.rucinski@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.
By contrast, American Airlines AAL.O has gone from hiring 100 pilots a month before the pandemic to threatening 1,850 furloughs without fresh government assistance on labor costs. Spirit and Frontier have posted pilot job ads and are taking delivery of Airbus AIR.PA A320neo jets that could open longer routes, including coast-to-coast flying traditionally controlled by legacy, or full-service, carriers. U.S. mainline legacy carriers American, Delta Air Lines DAL.N and United Airlines UAL.O have diverse fleets that include expensive wide-body jets geared for the kind of business and international travel that has suffered most in the pandemic.
By contrast, American Airlines AAL.O has gone from hiring 100 pilots a month before the pandemic to threatening 1,850 furloughs without fresh government assistance on labor costs. As legacy airlines shrink to contain costs, budget carriers Spirit Airlines SAVE.N, Allegiant Travel ALGT.O and privately-owned Frontier Airlines are resuming pilot hiring and expanding networks to seize turf dominated by larger rivals. U.S. mainline legacy carriers American, Delta Air Lines DAL.N and United Airlines UAL.O have diverse fleets that include expensive wide-body jets geared for the kind of business and international travel that has suffered most in the pandemic.
By contrast, American Airlines AAL.O has gone from hiring 100 pilots a month before the pandemic to threatening 1,850 furloughs without fresh government assistance on labor costs. As legacy airlines shrink to contain costs, budget carriers Spirit Airlines SAVE.N, Allegiant Travel ALGT.O and privately-owned Frontier Airlines are resuming pilot hiring and expanding networks to seize turf dominated by larger rivals. U.S. mainline legacy carriers American, Delta Air Lines DAL.N and United Airlines UAL.O have diverse fleets that include expensive wide-body jets geared for the kind of business and international travel that has suffered most in the pandemic.
By contrast, American Airlines AAL.O has gone from hiring 100 pilots a month before the pandemic to threatening 1,850 furloughs without fresh government assistance on labor costs. As legacy airlines shrink to contain costs, budget carriers Spirit Airlines SAVE.N, Allegiant Travel ALGT.O and privately-owned Frontier Airlines are resuming pilot hiring and expanding networks to seize turf dominated by larger rivals. The three airlines' combined U.S. market share, which barely topped 10% before the pandemic, could grow by 10 percentage points this year alone, said René Armas Maes of UK-based consultancy MIDAS Aviation.
4666.0
2021-03-02 00:00:00 UTC
FOCUS-U.S. budget airlines plot pandemic breakthrough
AAL
https://www.nasdaq.com/articles/focus-u.s.-budget-airlines-plot-pandemic-breakthrough-2021-03-02-0
nan
nan
By Tracy Rucinski PALM COAST, Fla., March 2 (Reuters) - The COVID-19 pandemic has reshaped the global travel landscape and U.S. no-frills carriers are pouncing. As legacy airlines shrink to contain costs, budget carriers Spirit Airlines SAVE.N, Allegiant Travel ALGT.O and privately-owned Frontier Airlines are resuming pilot hiring and expanding networks to seize turf dominated by larger rivals. The three airlines' combined U.S. market share, which barely topped 10% before the pandemic, could grow by 10 percentage points this year alone, said René Armas Maes of UK-based consultancy MIDAS Aviation. "Ultra low-cost carriers want to attack head-to-head; they believe they're in a better position to rebuild travel demand," he said. Las Vegas-based Allegiant has told prospective pilots whose hiring was halted as the pandemic unfolded: "We have recalled all of our furloughed pilots and are now planning for exciting growth opportunities." Spirit and Frontier have posted pilot job ads and are taking delivery of Airbus AIR.PA A320neo jets that could open longer routes, including coast-to-coast flying traditionally controlled by legacy, or full-service, carriers. By contrast, American Airlines AAL.O has gone from hiring 100 pilots a month before the pandemic to threatening 1,850 furloughs without fresh government assistance on labor costs. Allegiant also stands to benefit if Congress approves a third round of COVID-19 payroll relief for U.S. airlines, but "would be just fine without it," Chief Financial Officer Greg Anderson told Reuters. "The leading indicators suggest that there is a nice growth trajectory for Allegiant," said Anderson, citing Google searches, indices that track changes in city populations and infection and vaccination trends from the Institute for Health Metrics and Evaluation. He said customer surveys also show an increased preference for smaller airports and non-stop flights, cornerstones of budget carriers' business models. TRIAL AND ERROR Ultra low-cost carriers, or ULCCs, offer a no-frills experience at rock-bottom fares and charge heavily for extras like bags. They wage fare wars and are pervasive in Europe's fragmented market but have lagged in the United States. ULCCs are a tier below carriers like Southwest Airlines LUV.N, which pioneered the low-cost concept in the 1970s and has grown to become the leading domestic airline. It provides free beverages and checked bags but keeps costs low in part by flying a single fleet-type of Boeing BA.N 737s. U.S. mainline legacy carriers American, Delta Air Lines DAL.N and United Airlines UAL.O have diverse fleets that include expensive wide-body jets geared for the kind of business and international travel that has suffered most in the pandemic. American's unit costs excluding fuel, a key metric of efficiency, were $0.18 per available mile in 2020, more than double that of budget rivals like Allegiant, according to data compiled by financial services firm Raymond James. This means Allegiant, which primarily uses second-hand planes and only flies on peak travel days like weekends, can more easily profit on discount fares. And whereas legacy carriers use a hub-and-spoke network that shuttles people through costly big-city airports, the ULCC business model is based on point-to-point travel to smaller airports where they outsource much of their infrastructure. Allegiant's fixed costs account for just around a quarter of its total. That flexibility helps budget carriers open new routes on a trial-and-error basis. During the pandemic, for example, they have pivoted toward beach and mountain destinations. "Then if the route is not performing, they won't hesitate to shut it down," said George Dimitroff of consultants Ascend by Cirium. But there are risks. American, United and Delta have also shifted flights during the pandemic to pick up leisure demand and their market power and geographical reach remain formidable. Competing with them can lure upstart airlines into relaxing cost discipline - a move described as a "path to hell" by budget airlines entrepreneur Bill Franke, who championed the ULCC model. Together the three large airlines control around 60% of domestic travel and could chase away rivals on smaller routes if they choose, industry critics said. But they are more burdened by debt than the ULCCs and continue to burn through millions of dollars every day, hampering their ability to grow, the critics said. BUDGET SHIFT Budget airlines with low debt are also using the crisis to snap up bargains on used planes hitting the market from bankruptcies abroad, traders said, allowing them to extend their cost advantage. Allegiant, with an average fleet age of 14 years, is eyeing deals on aircraft between eight and 12 years-old, Anderson said, noting: "Prices are well-discounted off pre-COVID." Beyond low fares, experts said the pandemic has given budget carriers a fresh argument for previously wary customers. Traditional airline perks like catering services have lost their luster in an era of masks, and budget airplanes feature the same hospital-grade aircraft filtration systems as others. And they could benefit from more cost-conscious small and medium sized businesses changing travel policies to favor lower-cost airlines, albeit constrained by their more limited flying through large hubs. "More price-sensitive travel will be the new normal for the next couple of years at least," Armas Maes said. Even so, today's outsiders will face a competitive cycle. After the last downturn, low-cost carrier JetBlue Airways JBLU.O grabbed market share from American on the U.S. east coast. Now it is grappling with competition from ULCCs and is teaming up with its old rival. No-frills tycoon Franke says low air fares no panacea for COVID-19 crisis U.S. proposes to waive minimum flight requirements for airlines until March 2021 U.S. airline CEOs to meet with White House on cutting carbon footprint U.S. Treasury starts distributing $15 bln in payroll aid to airlines American Airlines sending 13,000 furlough warnings as pandemic pain persists U.S. House committee approves another $14 bln for pandemic-hit airlines FACTBOX-U.S. airlines raise cash burn estimates as COVID-19 pain continues (Reporting by Tracy Rucinski; editing by Barbara Lewis and Nick Zieminski) ((tracy.rucinski@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.
By contrast, American Airlines AAL.O has gone from hiring 100 pilots a month before the pandemic to threatening 1,850 furloughs without fresh government assistance on labor costs. Spirit and Frontier have posted pilot job ads and are taking delivery of Airbus AIR.PA A320neo jets that could open longer routes, including coast-to-coast flying traditionally controlled by legacy, or full-service, carriers. U.S. mainline legacy carriers American, Delta Air Lines DAL.N and United Airlines UAL.O have diverse fleets that include expensive wide-body jets geared for the kind of business and international travel that has suffered most in the pandemic.
By contrast, American Airlines AAL.O has gone from hiring 100 pilots a month before the pandemic to threatening 1,850 furloughs without fresh government assistance on labor costs. As legacy airlines shrink to contain costs, budget carriers Spirit Airlines SAVE.N, Allegiant Travel ALGT.O and privately-owned Frontier Airlines are resuming pilot hiring and expanding networks to seize turf dominated by larger rivals. U.S. mainline legacy carriers American, Delta Air Lines DAL.N and United Airlines UAL.O have diverse fleets that include expensive wide-body jets geared for the kind of business and international travel that has suffered most in the pandemic.
By contrast, American Airlines AAL.O has gone from hiring 100 pilots a month before the pandemic to threatening 1,850 furloughs without fresh government assistance on labor costs. As legacy airlines shrink to contain costs, budget carriers Spirit Airlines SAVE.N, Allegiant Travel ALGT.O and privately-owned Frontier Airlines are resuming pilot hiring and expanding networks to seize turf dominated by larger rivals. U.S. mainline legacy carriers American, Delta Air Lines DAL.N and United Airlines UAL.O have diverse fleets that include expensive wide-body jets geared for the kind of business and international travel that has suffered most in the pandemic.
By contrast, American Airlines AAL.O has gone from hiring 100 pilots a month before the pandemic to threatening 1,850 furloughs without fresh government assistance on labor costs. As legacy airlines shrink to contain costs, budget carriers Spirit Airlines SAVE.N, Allegiant Travel ALGT.O and privately-owned Frontier Airlines are resuming pilot hiring and expanding networks to seize turf dominated by larger rivals. The three airlines' combined U.S. market share, which barely topped 10% before the pandemic, could grow by 10 percentage points this year alone, said René Armas Maes of UK-based consultancy MIDAS Aviation.
4667.0
2021-03-02 00:00:00 UTC
Defying Buffett, American Airlines Stock Looks To Do Quite Well in 2021
AAL
https://www.nasdaq.com/articles/defying-buffett-american-airlines-stock-looks-to-do-quite-well-in-2021-2021-03-02
nan
nan
InvestorPlace - Stock Market News, Stock Advice & Trading Tips American Airlines (NASDAQ:AAL) is in the middle of a recovery from the devastating travel downturn last year. The market always looks well into the future in these kinds of turnaround situations. So far this year, AAL stock is already up almost 33% as of Feb. 26 at $20.94 per share. Source: GagliardiPhotography / Shutterstock.com I expect that the share price will continue to move higher as the market looks forward to a major recovery by the end of 2022. The turnaround started as early as mid-May when AAL stock bottomed out around $9.04 or so. Since then the shares have moved up over 131% as of the end of February, bringing current levels to about 6% below the year-ago price. Given that AAL stock is likely to recover and gain over the next year, I suspect that those that sold AAL stock and other airline shares should consider this a mistake. But let’s have a closer look. What Was Warren Buffett Thinking? Interestingly that was exactly the point where Warren Buffett told his annual meeting participants that he had cashed out of all of his airline stocks. I find this all very strange for followers of the CEO of Berkshire Hathaway (NYSE:BRK-A, NYSE:BRK-B). In fact, I have questioned whether Buffett has truly “lost his groove” in his disastrous sale of all these airline stocks. In fact, some airline executives bought shares the same day Buffett “dissed” airline stocks he had sold during his annual meeting last May. Buffett announced the sales on May 2, but he did not say when they sold. It turns out that if he sold any time after March 13, the company would have been better off today by just holding on. Moreover, Warren Buffett just released his 2020 letter to shareholders. He did not even mention this disastrous move, even though he admitted to other “mistakes.” I find this all very disingenuous from someone who is revered as a great stock picker. 7 Penny Stocks Close To Busting Through the $5 Mark For example, Berkshire Hathaway reported on page 2 of the shareholder letter that his stock’s total return was just 2.4% vs. the S&P 500 total return of 18.4%. Moreover, the S&P 500 500 Trust ETF (NYSEARCA:SPY) is up over 22% year-to-date, vs. BRK stock up only 4.22%. Clearly, if Buffett had not lost his nerve and not sold airline stocks at the bottom, Berkshire Hathaway’s returns would have been much better. Therefore, this is a lesson for most people to not trust money managers, but to always do the contrarian thing. Buy when others are selling, and sell when others are buying based on fears of missing out. What To Do Now With AAL Stock Just because the stock is up now doesn’t mean you should avoid buying it. This is especially so now as the company is still in the middle of a turnaround. For example, analysts expect revenue will climb 51% this year to $26.2 billion, up from $17.3 billion in 2020. Moreover, revenue will likely rise another $10 billion in 2022, or 38.5% to $36.3 billion. If that happens, AAL stock is not going to stay at $21 and change, where it is today. It is going to go much higher. That is going to make Buffett’s panic selling at the bottom even more catastrophic for his shareholders. In all fairness, though, Buffett did get one thing right about the airlines. He indicated that it would take years for the company’s earnings to turn around. And that is true. Analysts are not even projecting meaningful profits for American Airlines until the year ending 2023. That is when projections are for $2.04 in earnings per share (EPS). That puts AAL stock at 10 times earnings three years out in the future. But by 2024, EPS is forecast to be $5.33. Therefore, assuming AAL stock reflects these earnings three years in the future, AAL stock could hit $53.33 some time this year. So the real “mistake” Buffett would have made is selling the airline stocks along with everyone else. However, given that he did not mention anything about this in his shareholder letter, don’t expect him to admit to any kind of mistake in this regard in the future. On the date of publication, Mark R. Hake did not hold a long or short position in any of the securities in this article. Mark Hake writes about personal finance on mrhake.medium.com and runs the Total Yield Value Guide which you can review here. The post Defying Buffett, American Airlines Stock Looks To Do Quite Well in 2021 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.
InvestorPlace - Stock Market News, Stock Advice & Trading Tips American Airlines (NASDAQ:AAL) is in the middle of a recovery from the devastating travel downturn last year. So far this year, AAL stock is already up almost 33% as of Feb. 26 at $20.94 per share. The turnaround started as early as mid-May when AAL stock bottomed out around $9.04 or so.
InvestorPlace - Stock Market News, Stock Advice & Trading Tips American Airlines (NASDAQ:AAL) is in the middle of a recovery from the devastating travel downturn last year. Therefore, assuming AAL stock reflects these earnings three years in the future, AAL stock could hit $53.33 some time this year. So far this year, AAL stock is already up almost 33% as of Feb. 26 at $20.94 per share.
InvestorPlace - Stock Market News, Stock Advice & Trading Tips American Airlines (NASDAQ:AAL) is in the middle of a recovery from the devastating travel downturn last year. Given that AAL stock is likely to recover and gain over the next year, I suspect that those that sold AAL stock and other airline shares should consider this a mistake. Therefore, assuming AAL stock reflects these earnings three years in the future, AAL stock could hit $53.33 some time this year.
So far this year, AAL stock is already up almost 33% as of Feb. 26 at $20.94 per share. That puts AAL stock at 10 times earnings three years out in the future. InvestorPlace - Stock Market News, Stock Advice & Trading Tips American Airlines (NASDAQ:AAL) is in the middle of a recovery from the devastating travel downturn last year.
4668.0
2021-03-02 00:00:00 UTC
U.S airlines remain in 'dire straits,' needs new government assistance -- industry group
AAL
https://www.nasdaq.com/articles/u.s-airlines-remain-in-dire-straits-needs-new-government-assistance-industry-group-2021-03
nan
nan
By David Shepardson and Tracy Rucinski WASHINGTON, March 2 (Reuters) - The head of a group representing major U.S. passenger airlines and a senior union official will make the case Tuesday to lawmakers for a third round of government assistance, according to testimony seen by Reuters. Since March 2020, Congress has awarded passenger and cargo airlines, airports and contractors nearly $90 billion in government assistance and low-cost loans, including two prior rounds of payroll assistance for U.S. passenger airlines totaling $40 billion. The $1.9 trillion COVID-19 relief package approved by the U.S. House last week includes another $14 billion for passenger airlines to keep workers on payrolls for an additional six months. It awaits action by the U.S. Senate. Nick Calio, who heads Airlines for America, a trade group representing American Airlines AAL.O, Delta Air Lines DAL.N, United Airlines UAL.O and others, will tell the House Transportation and Infrastructure's aviation subcommittee that tens of thousands of aviation workers will "lose their jobs — or experience reductions to wages and benefits — effective April 1." Calio's testimony adds that "funding is an explicit recognition that the industry remains in dire straits, even before factoring in the certainty that it will be inundated with debt for years to come." In 2020, U.S. airlines saw passenger traffic fall by 60% to 368 million passengers, the lowest number since 1984 and reported pretax losses of $46 billion. They continue to burn "an estimated $150 million of cash every day," Calio will say. The current COVID-19 bill also includes $8 billion for airports and concessionaires and $1 billion for airline contractors. Joseph DePete, president of the Air Line Pilots Association, will tell lawmakers that "dismal long-term booking commitments and the near absence of business travel demand is leaving some carriers with too little certainty to reactivate and retrain furloughed or otherwise inactive pilots." The heads of the General Aviation Manufacturers Association, Congress and the National Business Aviation Association will echo industry calls for steps to spur the production of sustainable aviation fuels with tax incentives. (Reporting by David Shepardson and Tracy Rucinski. Editing by Gerry Doyle) ((tracy.rucinski@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.
Nick Calio, who heads Airlines for America, a trade group representing American Airlines AAL.O, Delta Air Lines DAL.N, United Airlines UAL.O and others, will tell the House Transportation and Infrastructure's aviation subcommittee that tens of thousands of aviation workers will "lose their jobs — or experience reductions to wages and benefits — effective April 1." By David Shepardson and Tracy Rucinski WASHINGTON, March 2 (Reuters) - The head of a group representing major U.S. passenger airlines and a senior union official will make the case Tuesday to lawmakers for a third round of government assistance, according to testimony seen by Reuters. The $1.9 trillion COVID-19 relief package approved by the U.S. House last week includes another $14 billion for passenger airlines to keep workers on payrolls for an additional six months.
Nick Calio, who heads Airlines for America, a trade group representing American Airlines AAL.O, Delta Air Lines DAL.N, United Airlines UAL.O and others, will tell the House Transportation and Infrastructure's aviation subcommittee that tens of thousands of aviation workers will "lose their jobs — or experience reductions to wages and benefits — effective April 1." By David Shepardson and Tracy Rucinski WASHINGTON, March 2 (Reuters) - The head of a group representing major U.S. passenger airlines and a senior union official will make the case Tuesday to lawmakers for a third round of government assistance, according to testimony seen by Reuters. Since March 2020, Congress has awarded passenger and cargo airlines, airports and contractors nearly $90 billion in government assistance and low-cost loans, including two prior rounds of payroll assistance for U.S. passenger airlines totaling $40 billion.
Nick Calio, who heads Airlines for America, a trade group representing American Airlines AAL.O, Delta Air Lines DAL.N, United Airlines UAL.O and others, will tell the House Transportation and Infrastructure's aviation subcommittee that tens of thousands of aviation workers will "lose their jobs — or experience reductions to wages and benefits — effective April 1." By David Shepardson and Tracy Rucinski WASHINGTON, March 2 (Reuters) - The head of a group representing major U.S. passenger airlines and a senior union official will make the case Tuesday to lawmakers for a third round of government assistance, according to testimony seen by Reuters. Since March 2020, Congress has awarded passenger and cargo airlines, airports and contractors nearly $90 billion in government assistance and low-cost loans, including two prior rounds of payroll assistance for U.S. passenger airlines totaling $40 billion.
Nick Calio, who heads Airlines for America, a trade group representing American Airlines AAL.O, Delta Air Lines DAL.N, United Airlines UAL.O and others, will tell the House Transportation and Infrastructure's aviation subcommittee that tens of thousands of aviation workers will "lose their jobs — or experience reductions to wages and benefits — effective April 1." Since March 2020, Congress has awarded passenger and cargo airlines, airports and contractors nearly $90 billion in government assistance and low-cost loans, including two prior rounds of payroll assistance for U.S. passenger airlines totaling $40 billion. It awaits action by the U.S. Senate.
4669.0
2021-03-01 00:00:00 UTC
Why Airline Stocks Are Up Today
AAL
https://www.nasdaq.com/articles/why-airline-stocks-are-up-today-2021-03-01
nan
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What happened Airline shares gained altitude on Monday thanks to a series of positive signs concerning the industry's post-pandemic recovery. United Airlines Holdings (NASDAQ: UAL), American Airlines Group (NASDAQ: AAL), and Spirit Airlines (NYSE: SAVE) led the way higher, each up more than 5% at one point on Monday. So what It's been a difficult last 12 months for airlines, as the pandemic caused demand for travel to dry up and sent the entire industry into the red. We've seen a slow recovery in the shares in recent months thanks to the development of vaccines and signs there is pent-up demand for travel once it is safe. And on Monday we got a fresh batch of good news to send the stocks higher. Image source: Getty Images. A vaccine developed by Johnson & Johnson got the green light from U.S. regulators over the weekend, which means the country now has three vaccines to deploy against the virus. A $1.9 trillion stimulus bill also passed the U.S. House of Representatives over the weekend, bringing it one step closer to becoming law. The bill contains additional funds to support airline payrolls, and should help make sure the economy is strong as the population starts making travel plans for the summer. United did its part to get investors excited, adding to its Boeing 737 MAX order and pushing forward some deliveries in anticipation of an expected rebound in demand. Spirit is likely coming along for the ride because the airline, with its industry-low costs and focus on leisure travelers, is expected to be among the first to fully bounce back post-pandemic. American, meanwhile, got a price-target boost to $20 from $14 from Stifel. Now what With each passing day, investors are growing more confident the worst is over for the airlines. They're right, but they need to be careful not to get ahead of themselves. There is still some risk to the summer travel season, and even if vacationers do return in the months to come, it is likely going to be years before more-lucrative parts of the aviation market, including business and international flying, recover. And while most of the airline stocks still trade at a discount to where they were pre-pandemic, if you factor in the amount of debt the industry has taken on to survive the crisis, the valuations are beginning to look frothy. Looking at the industry in terms of enterprise value (a measure of total market capitalization plus debt), some are actually up from the beginning of 2020. Airline stocks are still attractive for those with a long time horizon, but they are no longer the bargains they were just a few months ago. 10 stocks we like better than United Airlines Holdings When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and United Airlines Holdings wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of February 24, 2021 Lou Whiteman owns shares of Spirit Airlines. The Motley Fool owns shares of Spirit Airlines. The Motley Fool recommends Johnson & Johnson. 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.
United Airlines Holdings (NASDAQ: UAL), American Airlines Group (NASDAQ: AAL), and Spirit Airlines (NYSE: SAVE) led the way higher, each up more than 5% at one point on Monday. United did its part to get investors excited, adding to its Boeing 737 MAX order and pushing forward some deliveries in anticipation of an expected rebound in demand. There is still some risk to the summer travel season, and even if vacationers do return in the months to come, it is likely going to be years before more-lucrative parts of the aviation market, including business and international flying, recover.
United Airlines Holdings (NASDAQ: UAL), American Airlines Group (NASDAQ: AAL), and Spirit Airlines (NYSE: SAVE) led the way higher, each up more than 5% at one point on Monday. See the 10 stocks *Stock Advisor returns as of February 24, 2021 Lou Whiteman owns shares of Spirit Airlines. The Motley Fool owns shares of Spirit Airlines.
United Airlines Holdings (NASDAQ: UAL), American Airlines Group (NASDAQ: AAL), and Spirit Airlines (NYSE: SAVE) led the way higher, each up more than 5% at one point on Monday. 10 stocks we like better than United Airlines Holdings When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. See the 10 stocks *Stock Advisor returns as of February 24, 2021 Lou Whiteman owns shares of Spirit Airlines.
United Airlines Holdings (NASDAQ: UAL), American Airlines Group (NASDAQ: AAL), and Spirit Airlines (NYSE: SAVE) led the way higher, each up more than 5% at one point on Monday. * David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and United Airlines Holdings wasn't one of them! The Motley Fool owns shares of Spirit Airlines.
4670.0
2021-03-01 00:00:00 UTC
US STOCKS-Wall Street rallies as Treasury yields stabilize
AAL
https://www.nasdaq.com/articles/us-stocks-wall-street-rallies-as-treasury-yields-stabilize-2021-03-01
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By Noel Randewich March 1 (Reuters) - Wall Street surged on Monday as bond markets calmed after a month-long selloff, while another COVID-19 vaccine getting U.S. approval and fiscal stimulus bolstered expectations of a swift economic recovery. Johnson & Johnson JNJ.Nshares rose as it began shipping its single-dose vaccine after it became the third authorized COVID-19 vaccine in the United States over the weekend. President Joe Biden scored his first legislative win as the House of Representatives passed his $1.9 trillion coronavirus relief package early Saturday. The bill now moves to the Senate. U.S. bond yields eased after a swift rise last month on expectations of accelerated inflation due to bets on an economic rebound. The U.S. 10-year treasury yield dipped to 1.449% after hitting a one-year high of 1.614%. US/ "The sentiment is risk-on with more investors showing interest towards cyclical stocks while a positive vaccination drive and better macro numbers are hinting towards a better growth environment," said Keith Buchanan, portfolio manager at Globalt in Atlanta. Data showed U.S. manufacturing activity increased to a three-year high in February amid an acceleration in new orders. All 11 S&P 500 sectors rallied, led by financials .SPSY and industrials .SPLRCI. Apple IncAAPL.O, Microsoft Corp MSFT.O, Facebook Inc FB.O and Amazon.com Inc AMZN.O bounced back after a selloff last week in tech stocks. Apple was the strongest contributor to the S&P 500's gains. The S&P 500's rebound from its 50-day moving average, touched after Friday's decline, is a bullish sign that is adding to investors' enthusiasm, said CFRA Research Chief Investment Strategist Sam Stovall. "It's a positive signal, at least in the near term, that the recent weakness has dissipated," Stovall said. Unofficially, the Dow Jones Industrial Average .DJI rose 1.94% to end at 31,531.36 points, while the S&P 500 .SPX gained 2.37% to 3,901.62. The Nasdaq Composite .IXIC climbed 3.01% to 13,589.26. The Russell 2000 index .RUT of smaller companies also surged, putting its gain in 2021 at around 15%, compared with the S&P 500's gain of under 5% in the same period. Shares of Delta Air Lines Inc DAL.N and American Airlines AAL.O each gained. Boeing Co BA.N jumped after United Airlines Holdings Inc UAL.O ordered 25 new 737 MAX aircraft and moved up the delivery of others as it prepares to replace aging jets and meet expected post-pandemic growth in demand. Warren Buffett's enthusiasm for the future of the United States and his company Berkshire Hathaway Inc BRKa.N has not been dimmed by the coronavirus pandemic, according to his annual letter to investors. Berkshire's shares rallied. Perrigo Co Plc PRGO.N jumped as the consumer healthcare products company said it would sell its underperforming generic drugs business for $1.55 billion. (Reporting by Noel Randewich; Additional reporting by Medha Singh and Shashank Nayar in Bengaluru; Editing by Lisa Shumaker) ((noel.randewich@tr.com; (415) 677 2542, Twitter: @randewich)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Shares of Delta Air Lines Inc DAL.N and American Airlines AAL.O each gained. By Noel Randewich March 1 (Reuters) - Wall Street surged on Monday as bond markets calmed after a month-long selloff, while another COVID-19 vaccine getting U.S. approval and fiscal stimulus bolstered expectations of a swift economic recovery. US/ "The sentiment is risk-on with more investors showing interest towards cyclical stocks while a positive vaccination drive and better macro numbers are hinting towards a better growth environment," said Keith Buchanan, portfolio manager at Globalt in Atlanta.
Shares of Delta Air Lines Inc DAL.N and American Airlines AAL.O each gained. Johnson & Johnson JNJ.Nshares rose as it began shipping its single-dose vaccine after it became the third authorized COVID-19 vaccine in the United States over the weekend. Unofficially, the Dow Jones Industrial Average .DJI rose 1.94% to end at 31,531.36 points, while the S&P 500 .SPX gained 2.37% to 3,901.62.
Shares of Delta Air Lines Inc DAL.N and American Airlines AAL.O each gained. By Noel Randewich March 1 (Reuters) - Wall Street surged on Monday as bond markets calmed after a month-long selloff, while another COVID-19 vaccine getting U.S. approval and fiscal stimulus bolstered expectations of a swift economic recovery. Boeing Co BA.N jumped after United Airlines Holdings Inc UAL.O ordered 25 new 737 MAX aircraft and moved up the delivery of others as it prepares to replace aging jets and meet expected post-pandemic growth in demand.
Shares of Delta Air Lines Inc DAL.N and American Airlines AAL.O each gained. All 11 S&P 500 sectors rallied, led by financials .SPSY and industrials .SPLRCI. Apple was the strongest contributor to the S&P 500's gains.
4671.0
2021-03-01 00:00:00 UTC
Notable Monday Option Activity: LMT, MO, AAL
AAL
https://www.nasdaq.com/articles/notable-monday-option-activity%3A-lmt-mo-aal-2021-03-01
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Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Lockheed Martin Corp (Symbol: LMT), where a total of 10,172 contracts have traded so far, representing approximately 1.0 million underlying shares. That amounts to about 56.5% of LMT's average daily trading volume over the past month of 1.8 million shares. Especially high volume was seen for the $400 strike call option expiring April 16, 2021, with 1,141 contracts trading so far today, representing approximately 114,100 underlying shares of LMT. Below is a chart showing LMT's trailing twelve month trading history, with the $400 strike highlighted in orange: Altria Group Inc (Symbol: MO) options are showing a volume of 46,043 contracts thus far today. That number of contracts represents approximately 4.6 million underlying shares, working out to a sizeable 56.4% of MO's average daily trading volume over the past month, of 8.2 million shares. Particularly high volume was seen for the $47 strike call option expiring March 19, 2021, with 8,031 contracts trading so far today, representing approximately 803,100 underlying shares of MO. Below is a chart showing MO's trailing twelve month trading history, with the $47 strike highlighted in orange: And American Airlines Group Inc (Symbol: AAL) saw options trading volume of 282,619 contracts, representing approximately 28.3 million underlying shares or approximately 56.2% of AAL's average daily trading volume over the past month, of 50.3 million shares. Particularly high volume was seen for the $25 strike call option expiring March 05, 2021, with 32,300 contracts trading so far today, representing approximately 3.2 million underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $25 strike highlighted in orange: For the various different available expirations for LMT options, MO options, or AAL 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.
Particularly high volume was seen for the $25 strike call option expiring March 05, 2021, with 32,300 contracts trading so far today, representing approximately 3.2 million underlying shares of AAL. Below is a chart showing MO's trailing twelve month trading history, with the $47 strike highlighted in orange: And American Airlines Group Inc (Symbol: AAL) saw options trading volume of 282,619 contracts, representing approximately 28.3 million underlying shares or approximately 56.2% of AAL's average daily trading volume over the past month, of 50.3 million shares. Below is a chart showing AAL's trailing twelve month trading history, with the $25 strike highlighted in orange: For the various different available expirations for LMT options, MO options, or AAL options, visit StockOptionsChannel.com.
Below is a chart showing MO's trailing twelve month trading history, with the $47 strike highlighted in orange: And American Airlines Group Inc (Symbol: AAL) saw options trading volume of 282,619 contracts, representing approximately 28.3 million underlying shares or approximately 56.2% of AAL's average daily trading volume over the past month, of 50.3 million shares. Particularly high volume was seen for the $25 strike call option expiring March 05, 2021, with 32,300 contracts trading so far today, representing approximately 3.2 million underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $25 strike highlighted in orange: For the various different available expirations for LMT options, MO options, or AAL options, visit StockOptionsChannel.com.
Below is a chart showing MO's trailing twelve month trading history, with the $47 strike highlighted in orange: And American Airlines Group Inc (Symbol: AAL) saw options trading volume of 282,619 contracts, representing approximately 28.3 million underlying shares or approximately 56.2% of AAL's average daily trading volume over the past month, of 50.3 million shares. Particularly high volume was seen for the $25 strike call option expiring March 05, 2021, with 32,300 contracts trading so far today, representing approximately 3.2 million underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $25 strike highlighted in orange: For the various different available expirations for LMT options, MO options, or AAL options, visit StockOptionsChannel.com.
Below is a chart showing MO's trailing twelve month trading history, with the $47 strike highlighted in orange: And American Airlines Group Inc (Symbol: AAL) saw options trading volume of 282,619 contracts, representing approximately 28.3 million underlying shares or approximately 56.2% of AAL's average daily trading volume over the past month, of 50.3 million shares. Below is a chart showing AAL's trailing twelve month trading history, with the $25 strike highlighted in orange: For the various different available expirations for LMT options, MO options, or AAL options, visit StockOptionsChannel.com. Particularly high volume was seen for the $25 strike call option expiring March 05, 2021, with 32,300 contracts trading so far today, representing approximately 3.2 million underlying shares of AAL.
4672.0
2021-03-01 00:00:00 UTC
US STOCKS-S&P 500 rallies, on track for best one-day rise since June
AAL
https://www.nasdaq.com/articles/us-stocks-sp-500-rallies-on-track-for-best-one-day-rise-since-june-2021-03-01
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By Noel Randewich March 1 (Reuters) - The S&P 500 surged on Monday and was headed for its biggest one-day gain since June as bond markets calmed after a month-long selloff, while developments on COVID-19 vaccines and fiscal stimulus bolstered expectations of a swift economic recovery. Johnson & Johnson JNJ.N rose almost 1% as it began shipping its single-dose vaccine after it became the third authorized COVID-19 vaccine in the United States over the weekend. President Joe Biden scored his first legislative win as the House of Representatives passed his $1.9 trillion coronavirus relief package early Saturday. The bill now moves to the Senate. U.S. bond yields eased after a swift rise last month on expectations of accelerated inflation due to bets on an economic rebound. The U.S. 10-year treasury yield dipped to 1.453% after hitting a one-year high of 1.614%. US/ "The sentiment is risk-on with more investors showing interest towards cyclical stocks while a positive vaccination drive and better macro numbers are hinting towards a better growth environment," said Keith Buchanan, portfolio manager at GLOBALT in Atlanta. New data showed U.S. manufacturing activity increased to a three-year high in February amid an acceleration in new orders. All 11 S&P 500 sectors rallied more than 1%, led by financials .SPSY and industrials .SPLRCI, both up over 3%. Apple AAPL.O, Microsoft Corp MSFT.O, Facebook Inc FB.O and Amazon.com Inc AMZN.O bounced back after a selloff last week in tech stocks. The S&P 500's rebound from its 50-day moving average, touched after Friday's decline, is a bullish sign that is adding to investors' enthusiasm, said CFRA Research Chief Investment Strategist Sam Stovall. "It's a positive signal, at least in the near term, that the recent weakness has dissipated," Stovall said. In afternoon trading, the Dow Jones Industrial Average .DJI was up 2.3% at 31,643.25 points, while the S&P 500 .SPX gained 2.55% to 3,908.39. The Nasdaq Composite .IXIC added 2.8% to 13,561.22. Shares of Delta Air Lines Inc DAL.N and American Airlines AAL.O each gained about 1%. Boeing Co BA.N jumped 5.9% after United Airlines Holdings Inc UAL.O ordered 25 new 737 MAX aircraft and moved up the delivery of others as it prepares to replace aging jets and meet expected post-pandemic growth in demand. Warren Buffett's enthusiasm for the future of the United States and his company Berkshire Hathaway Inc BRKa.N has not been dimmed by the coronavirus pandemic, according to his annual letter to investors. Berkshire's shares rose 3.8%. Perrigo Co Plc PRGO.N jumped 7.5% as the consumer healthcare products company said it would sell its underperforming generic drugs business for $1.55 billion. Advancing issues outnumbered declining ones on the NYSE by a 4.50-to-1 ratio; on Nasdaq, a 4.60-to-1 ratio favored advancers. The S&P 500 posted 47 new 52-week highs and no new lows; the Nasdaq Composite recorded 172 new highs and 16 new lows. (Additional reporting by Medha Singh and Shashank Nayar in Bengaluru) ((noel.randewich@tr.com; (415) 677 2542, Twitter: @randewich)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Shares of Delta Air Lines Inc DAL.N and American Airlines AAL.O each gained about 1%. By Noel Randewich March 1 (Reuters) - The S&P 500 surged on Monday and was headed for its biggest one-day gain since June as bond markets calmed after a month-long selloff, while developments on COVID-19 vaccines and fiscal stimulus bolstered expectations of a swift economic recovery. US/ "The sentiment is risk-on with more investors showing interest towards cyclical stocks while a positive vaccination drive and better macro numbers are hinting towards a better growth environment," said Keith Buchanan, portfolio manager at GLOBALT in Atlanta.
Shares of Delta Air Lines Inc DAL.N and American Airlines AAL.O each gained about 1%. Johnson & Johnson JNJ.N rose almost 1% as it began shipping its single-dose vaccine after it became the third authorized COVID-19 vaccine in the United States over the weekend. The Nasdaq Composite .IXIC added 2.8% to 13,561.22.
Shares of Delta Air Lines Inc DAL.N and American Airlines AAL.O each gained about 1%. By Noel Randewich March 1 (Reuters) - The S&P 500 surged on Monday and was headed for its biggest one-day gain since June as bond markets calmed after a month-long selloff, while developments on COVID-19 vaccines and fiscal stimulus bolstered expectations of a swift economic recovery. The S&P 500's rebound from its 50-day moving average, touched after Friday's decline, is a bullish sign that is adding to investors' enthusiasm, said CFRA Research Chief Investment Strategist Sam Stovall.
Shares of Delta Air Lines Inc DAL.N and American Airlines AAL.O each gained about 1%. The Nasdaq Composite .IXIC added 2.8% to 13,561.22. Berkshire's shares rose 3.8%.
4673.0
2021-03-01 00:00:00 UTC
US STOCKS-Wall St jumps on J&J vaccine cheer, stimulus optimism
AAL
https://www.nasdaq.com/articles/us-stocks-wall-st-jumps-on-jj-vaccine-cheer-stimulus-optimism-2021-03-01
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By Medha Singh and Shashank Nayar March 1 (Reuters) - Wall Street's major averages rose 1.5% on Monday as bond markets calmed after a month-long selloff, while encouraging updates on the vaccine and stimulus fronts strengthened bets over a swift economic recovery. Shares of cruise liner and hotel operators, and carriers including Carnival Corp CCL.N, Hilton HLT.N, Delta Air Lines Inc DAL.N and American Airlines AAL.O gained between 1.8% and 4.6%. Johnson & Johnson JNJ.Nrose 1.8% as it began shipping its single-dose vaccine after it became the third authorized COVID-19 vaccine in the United States over the weekend. President Joe Biden scored his first legislative win as the House of Representatives passed his $1.9 trillion coronavirus relief package early Saturday. The bill now moves to the Senate. U.S. bond yields eased on Monday after a swift rise last month on expectations of accelerated inflation due to bets on an economic rebound. The U.S. 10-year treasury yield eased to 1.446% after hitting a one-year high of 1.614%. US/ "The angst over rising yields is going to subside with yield levels clearly calming down while positive vaccine and stimulus updates will also support (markets) as it's very good news for the economy and corporate earnings," said Art Hogan, chief market strategist at National Securities in New York. All major S&P sectors were higher with those that stand to benefit more from an economic rebound outperforming. Financials .SPSY, energy .SPNY and materials .SPLRCM gained between 2% to 3%. Wall Street's main indexes ended lower last week, with the Nasdaq suffering its worst week in four months, as a rise in long-dormant yields signaled bonds are more serious investment competition, sparking a pullback in high-valuation tech stocks. Apple AAPL.O, Microsoft Corp MSFT.O, Facebook Inc FB.O and Amazon.com Inc AMZN.O rebounded between 0.4% and 2% on Monday. At 9:40 a.m. ET, the Dow Jones Industrial Average .DJI rose 503.46 points, or 1.63% , to 31,435.83, the S&P 500 .SPX gained 56.93 points, or 1.49%, to 3,868.08 and the Nasdaq Composite .IXIC gained 194.58 points, or 1.47%, to 13,386.92. Investors will look to ISM's U.S. manufacturing activity data for February at 10 a.m. ET which is expected to be largely unchanged from January. Warren Buffett's enthusiasm for the future of America and his company Berkshire Hathaway Inc BRKa.N has not been dimmed by the coronavirus pandemic, according to his annual letter to investors. Berkshire's shares rose about 2.3%. Perrigo Company Plc PRGO.N jumped about 9% as the consumer healthcare products company said it would sell its underperforming generic drugs business for $1.55 billion. Advancing issues outnumbered decliners by a 9.4-to-1 ratio on the NYSE and by a 9.2-to-1 ratio on the Nasdaq. The S&P 500 posted 13 new 52-week highs and no new low, while the Nasdaq recorded 102 new highs and 12 new lows. (Reporting by Medha Singh 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.
Shares of cruise liner and hotel operators, and carriers including Carnival Corp CCL.N, Hilton HLT.N, Delta Air Lines Inc DAL.N and American Airlines AAL.O gained between 1.8% and 4.6%. By Medha Singh and Shashank Nayar March 1 (Reuters) - Wall Street's major averages rose 1.5% on Monday as bond markets calmed after a month-long selloff, while encouraging updates on the vaccine and stimulus fronts strengthened bets over a swift economic recovery. President Joe Biden scored his first legislative win as the House of Representatives passed his $1.9 trillion coronavirus relief package early Saturday.
Shares of cruise liner and hotel operators, and carriers including Carnival Corp CCL.N, Hilton HLT.N, Delta Air Lines Inc DAL.N and American Airlines AAL.O gained between 1.8% and 4.6%. By Medha Singh and Shashank Nayar March 1 (Reuters) - Wall Street's major averages rose 1.5% on Monday as bond markets calmed after a month-long selloff, while encouraging updates on the vaccine and stimulus fronts strengthened bets over a swift economic recovery. U.S. bond yields eased on Monday after a swift rise last month on expectations of accelerated inflation due to bets on an economic rebound.
Shares of cruise liner and hotel operators, and carriers including Carnival Corp CCL.N, Hilton HLT.N, Delta Air Lines Inc DAL.N and American Airlines AAL.O gained between 1.8% and 4.6%. By Medha Singh and Shashank Nayar March 1 (Reuters) - Wall Street's major averages rose 1.5% on Monday as bond markets calmed after a month-long selloff, while encouraging updates on the vaccine and stimulus fronts strengthened bets over a swift economic recovery. US/ "The angst over rising yields is going to subside with yield levels clearly calming down while positive vaccine and stimulus updates will also support (markets) as it's very good news for the economy and corporate earnings," said Art Hogan, chief market strategist at National Securities in New York.
Shares of cruise liner and hotel operators, and carriers including Carnival Corp CCL.N, Hilton HLT.N, Delta Air Lines Inc DAL.N and American Airlines AAL.O gained between 1.8% and 4.6%. By Medha Singh and Shashank Nayar March 1 (Reuters) - Wall Street's major averages rose 1.5% on Monday as bond markets calmed after a month-long selloff, while encouraging updates on the vaccine and stimulus fronts strengthened bets over a swift economic recovery. U.S. bond yields eased on Monday after a swift rise last month on expectations of accelerated inflation due to bets on an economic rebound.
4674.0
2021-03-01 00:00:00 UTC
US STOCKS-Wall St set for higher open on J&J vaccine cheer, stimulus optimism
AAL
https://www.nasdaq.com/articles/us-stocks-wall-st-set-for-higher-open-on-jj-vaccine-cheer-stimulus-optimism-2021-03-01
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By Medha Singh and Shashank Nayar March 1 (Reuters) - Wall Street's major averages were set to open sharply higher on Monday as bond markets calmed after a month-long selloff, while encouraging updates on the vaccine and stimulus fronts strengthened bets over a swift economic recovery. Shares of cruise liner and hotel operators, and carriers including Carnival Corp CCL.N, Hilton HLT.N, Delta Air Lines Inc DAL.N and American Airlines AAL.O gained between 1.8% and 4.6% premarket. Johnson & Johnson JNJ.Nrose 1.8% as it began shipping its single-dose shot vaccine after it became the third authorized COVID-19 vaccine in the United States over the weekend. President Joe Biden scored his first legislative win as the House of Representatives passed his $1.9 trillion coronavirus relief package early Saturday. The bill now moves to the Senate. U.S. bond yields eased on Monday after a swift rise last month on expectations of accelerated inflation due to bets on an economic rebound. The U.S. 10-year treasury yield eased to 1.446% after hitting a one-year high of 1.614%. US/ "The angst over rising yields is going to subside with yield levels clearly calming down while positive vaccine and stimulus updates will also support (markets) as it's very good news for the economy and corporate earnings," said Art Hogan, chief market strategist at National Securities in New York. Sectors that stand to benefit more from an economic rebound outperformed, with lenders Bank of America Corp BAC.N, Citigroup Inc C.N and JPMorgan Chase & Co JPM.N jumping between 1.3% and 2.2%, and energy firms Chevron Corp CVX.N and Exxon Mobil Corp XOM.O between 1.8% and 2.6%. Wall Street's main indexes ended lower last week, with the Nasdaq suffering its worst week in four months, as a rise in long-dormant yields signaled bonds are more serious investment competition, sparking a pullback in high-valuation tech stocks. Apple AAPL.O, Microsoft Corp MSFT.O, Facebook Inc FB.O and Amazon.com Inc AMZN.O rebounded between 1% and 1.9% on Monday. At 8:12 a.m. ET, Dow E-minis 1YMcv1 were up 333 points, or 1.08% and S&P 500 E-minis EScv1 were up 43.25 points, or 1.14%. Nasdaq 100 E-minis NQcv1 were up 167.25 points, or 1.3%. Later in the day, investors will look to ISM's U.S. manufacturing activity data for February which is expected to be largely unchanged from January. Warren Buffett's enthusiasm for the future of America and his company Berkshire Hathaway Inc BRKa.N has not been dimmed by the coronavirus pandemic, according to his annual letter to investors. Berkshire's shares rose about 2.3%. Perrigo Company Plc PRGO.N jumped about 9% as the consumer healthcare products company said it would sell its underperforming generic drugs business for $1.55 billion. (Reporting by Medha Singh 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.
Shares of cruise liner and hotel operators, and carriers including Carnival Corp CCL.N, Hilton HLT.N, Delta Air Lines Inc DAL.N and American Airlines AAL.O gained between 1.8% and 4.6% premarket. By Medha Singh and Shashank Nayar March 1 (Reuters) - Wall Street's major averages were set to open sharply higher on Monday as bond markets calmed after a month-long selloff, while encouraging updates on the vaccine and stimulus fronts strengthened bets over a swift economic recovery. President Joe Biden scored his first legislative win as the House of Representatives passed his $1.9 trillion coronavirus relief package early Saturday.
Shares of cruise liner and hotel operators, and carriers including Carnival Corp CCL.N, Hilton HLT.N, Delta Air Lines Inc DAL.N and American Airlines AAL.O gained between 1.8% and 4.6% premarket. By Medha Singh and Shashank Nayar March 1 (Reuters) - Wall Street's major averages were set to open sharply higher on Monday as bond markets calmed after a month-long selloff, while encouraging updates on the vaccine and stimulus fronts strengthened bets over a swift economic recovery. U.S. bond yields eased on Monday after a swift rise last month on expectations of accelerated inflation due to bets on an economic rebound.
Shares of cruise liner and hotel operators, and carriers including Carnival Corp CCL.N, Hilton HLT.N, Delta Air Lines Inc DAL.N and American Airlines AAL.O gained between 1.8% and 4.6% premarket. By Medha Singh and Shashank Nayar March 1 (Reuters) - Wall Street's major averages were set to open sharply higher on Monday as bond markets calmed after a month-long selloff, while encouraging updates on the vaccine and stimulus fronts strengthened bets over a swift economic recovery. US/ "The angst over rising yields is going to subside with yield levels clearly calming down while positive vaccine and stimulus updates will also support (markets) as it's very good news for the economy and corporate earnings," said Art Hogan, chief market strategist at National Securities in New York.
Shares of cruise liner and hotel operators, and carriers including Carnival Corp CCL.N, Hilton HLT.N, Delta Air Lines Inc DAL.N and American Airlines AAL.O gained between 1.8% and 4.6% premarket. U.S. bond yields eased on Monday after a swift rise last month on expectations of accelerated inflation due to bets on an economic rebound. Warren Buffett's enthusiasm for the future of America and his company Berkshire Hathaway Inc BRKa.N has not been dimmed by the coronavirus pandemic, according to his annual letter to investors.
4675.0
2021-03-01 00:00:00 UTC
The Top 50 Robinhood Stocks in March
AAL
https://www.nasdaq.com/articles/the-top-50-robinhood-stocks-in-march-2021-03-01
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Recently, the investment community marked one year since stock market volatility went off the charts. We witnessed the fastest decline of at least 30% in the S&P 500's history, as well as a brief period where West Texas Intermediate crude oil futures turned negative. While much of the investment community stood in awe at these historic moves, this volatility acted as an insatiable lure for millennial and novice investors. Image source: Getty Images. Robinhood investors can't stop buying these 50 stocks Online investing app Robinhood, which known best for its commission-free trades and gifting of free shares of stock to new members, attracted some 3 million new users last year. What's notable about this figure is the average age of Robinhood's member base is only 31. This means millennial and/or novice investors flocked to the platform at a time when volatility soared. On one hand, it's a great thing to see young investors putting their money to work in the greatest wealth creator on the planet. Over the last 40 years, the total return of the S&P 500 (i.e., including dividends) is slightly above 10%. In other words, investors have been doubling their money about once every 7 years since the beginning of 1981, inclusive of dividend reinvestment. On the other hand, Robinhood's millennial/novice investors don't appear to understand the importance of long-term investing or the benefits of compounding. We know this, because Robinhood's leaderboard (a published list of the most-held stocks on the platform) is filled with penny stocks, momentum plays, and a number of others awful businesses. If you don't believe me, here's a snapshot of the 50 most-held Robinhood stocks as we enter March. COMPANY COMPANY 1. Apple 26. Snap 2. Tesla Motors 27. Castor Maritime 3. AMC Entertainment (NYSE: AMC) 28. Alibaba 4. Sundial Growers (NASDAQ: SNDL) 29. Moderna 5. Ford 30. Bank of America 6. General Electric 31. Netflix 7. NIO (NYSE: NIO) 32. BlackBerry 8. Microsoft 33. Canopy Growth 9. Walt Disney 34. FuelCell Energy 10. Amazon 35. Ideanomics 11. Nokia 36. Advanced Micro Devices 12. Aphria 37. Tilray 13. GameStop (NYSE: GME) 38. Facebook 14. Zomedica 39. Twitter 15. American Airlines Group (NASDAQ: AAL) 40. Norwegian Cruise Line 16. Plug Power 41. AT&T 17. Pfizer 42. General Motors 18. Aurora Cannabis (NYSE: ACB) 43. Virgin Galactic 19. Churchill Capital 44. Zynga 20. Carnival Corp. 45. United Airlines 21. GoPro 46. Boeing 22. Delta Air Lines 47. Coca-Cola 23. OrganiGram Holdings 48. Starbucks 24. Palantir Technologies 49. Cronos Group 25. Naked Brand Group (NASDAQ: NAKD) 50. Workhorse Group Data source: Robinhood, as of Feb. 25, 2021. Table by author. A major lust for momentum and penny stocks If there's one thing that sticks out like a sore thumb on this list, it's that Robinhood investors can't get enough penny stocks and high-volatility momentum plays for their portfolio. In particular, you'll note that many of the most-popular stocks discussed on Reddit's WallStreetBets chatroom are among the top-50 holdings on Robinhood. Companies like GameStop and AMC Entertainment, which are the poster children of the retail investor-fueled Reddit frenzy, are respectively the 13th and third most-held stocks on the platform. Both GameStop and AMC sport high levels of short interest, mostly from institutional investors or hedge funds. This made them the perfect targets for a short squeeze by retail investors. Unfortunately, you'll find little-to-no substance behind their rallies. GameStop is probably working on its fourth consecutive annual loss as it struggles to transition to a digital gaming environment. Meanwhile, AMC Entertainment narrowly avoided bankruptcy, and is watching the traditional movie theater operating model get decimated by the pandemic and select streaming providers. The other thing Robinhood investors are probably failing to realize is that penny stocks are almost always valued in penny territory for a good reason. For example, intimate apparel retailer Naked Brand Group hasn't generated a profit in at least six years, and the company is now in the midst of an organizational shift that'll focus on e-commerce. Naked Brand shows that tiny stocks are often tiny for a very good reason. Image source: Getty Images. Cannabis, cannabis, and more cannabis Robinhood investors' love affair with marijuana stocks continues for yet another month. As I've noted previously, Robinhood doesn't allow its members to buy over-the-counter (OTC)-listed companies. This means they're predominantly stuck buying the underperforming Canadian pot stocks that are listed on major U.S. exchanges. Seven of the top 50 holdings are Canadian pot stocks. If there's good news to report, it's that Aurora Cannabis has been slowly falling down the ranks of the most-held Robinhood stocks. Once the most-held stock on the entire platform, Aurora now sits at No. 18. It should continue to fall considering how poorly the company has been run. Even though new management has aggressively cut costs, it doesn't change the fact that the company's outstanding share count has risen by more than 12,000% since June 2014, or that the finish line to achieve positive earnings before interest, taxes, depreciation, and amortization (EBITDA) has been moved back on a number of occasions. The bad news is that Robinhood investors might have replaced Aurora Cannabis with an even worse pot stock: Sundial Growers. Although Sundial has an estimated $680 million in cash, it's built up its coffers on the backs of its shareholders. The company has issued over 1.1 billion shares via offerings and debt-to-equity swaps in five months. It's also in the midst of switching its focus to retail from wholesale, which'll only exacerbate near-term losses at a time when most North American pot stocks are turning profitable. Image source: Getty Images. Alternative energy and transportation remain must-owns for millennials If you thought cannabis was well represented in Robinhood's leaderboard, take a gander at the alternative energy and transportation plays. Nearly 30% of the top 50 are auto stocks, airlines, or a company focused on clean/renewable energy solutions. Suffice it to say, Robinhood investors are expecting a big uptick in travel demand, post-pandemic, and an increased focus on renewable energy from the Biden administration. But, as noted, they're also potentially playing with fire by chasing momentum stocks that have wildly detached from their underlying fundamentals. China-based electric-vehicle (EV) manufacturer NIO is still worth $73 billion after a 25% pullback, yet has only delivered a little north of 82,800 EVs since its inception. Being based in China, the largest auto market for EVs in the world, could unquestionably help its long-term outlook. However, $73 billion for such a young and unproven business is a bit much. Likewise, piling into American Airlines doesn't seem like a prudent idea. Even during the best of times, airline stocks generate mediocre margins and are able to return capital to shareholders through buybacks and dividends. But having taken a coronavirus relief loan, American Airlines is barred from buybacks and dividends. It also boasts the highest debt load of any major airline ($41 billion). Even if it survives the pandemic without seeking bankruptcy, it'll be so financially constrained by its debt that most growth initiatives can be tossed out the window. 10 stocks we like better than NIO Inc. When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and NIO Inc. wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of February 24, 2021 John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, is a member of The Motley Fool's board of directors. Sean Williams owns shares of Amazon, AT&T, Bank of America, and Facebook. The Motley Fool owns shares of and recommends Alibaba Group Holding Ltd., Amazon, Apple, Facebook, Microsoft, Netflix, OrganiGram Holdings, Starbucks, Tesla, Twitter, Virgin Galactic Holdings Inc, Walt Disney, and Zynga. The Motley Fool owns shares of Palantir Technologies Inc. The Motley Fool recommends BlackBerry, Carnival, Delta Air Lines, and Moderna Inc and recommends the following options: short April 2021 $110 calls on Starbucks, long January 2022 $1920 calls on Amazon, and short January 2022 $1940 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.
American Airlines Group (NASDAQ: AAL) 40. Meanwhile, AMC Entertainment narrowly avoided bankruptcy, and is watching the traditional movie theater operating model get decimated by the pandemic and select streaming providers. For example, intimate apparel retailer Naked Brand Group hasn't generated a profit in at least six years, and the company is now in the midst of an organizational shift that'll focus on e-commerce.
American Airlines Group (NASDAQ: AAL) 40. We know this, because Robinhood's leaderboard (a published list of the most-held stocks on the platform) is filled with penny stocks, momentum plays, and a number of others awful businesses. The Motley Fool owns shares of and recommends Alibaba Group Holding Ltd., Amazon, Apple, Facebook, Microsoft, Netflix, OrganiGram Holdings, Starbucks, Tesla, Twitter, Virgin Galactic Holdings Inc, Walt Disney, and Zynga.
American Airlines Group (NASDAQ: AAL) 40. Robinhood investors can't stop buying these 50 stocks Online investing app Robinhood, which known best for its commission-free trades and gifting of free shares of stock to new members, attracted some 3 million new users last year. The Motley Fool owns shares of and recommends Alibaba Group Holding Ltd., Amazon, Apple, Facebook, Microsoft, Netflix, OrganiGram Holdings, Starbucks, Tesla, Twitter, Virgin Galactic Holdings Inc, Walt Disney, and Zynga.
American Airlines Group (NASDAQ: AAL) 40. We know this, because Robinhood's leaderboard (a published list of the most-held stocks on the platform) is filled with penny stocks, momentum plays, and a number of others awful businesses. The Motley Fool owns shares of and recommends Alibaba Group Holding Ltd., Amazon, Apple, Facebook, Microsoft, Netflix, OrganiGram Holdings, Starbucks, Tesla, Twitter, Virgin Galactic Holdings Inc, Walt Disney, and Zynga.
4676.0
2021-03-01 00:00:00 UTC
US STOCKS-S&P 500 set for best day in nine months on vaccine, stimulus cheer
AAL
https://www.nasdaq.com/articles/us-stocks-sp-500-set-for-best-day-in-nine-months-on-vaccine-stimulus-cheer-2021-03-01
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By Medha Singh and Shashank Nayar March 1 (Reuters) - The S&P 500 on Monday was headed for its best day since June 5 as bond markets calmed after a month-long selloff, while encouraging updates on COVID-19 vaccines and fiscal stimulus bolstered bets over a swift economic recovery. The Dow was on pace for its best daily gain in nearly four months, while the Nasdaq was set for its best daily percentage gain in a month. Johnson & Johnson JNJ.Nrose 1.8% as it began shipping its single-dose vaccine after it became the third authorized COVID-19 vaccine in the United States over the weekend. President Joe Biden scored his first legislative win as the House of Representatives passed his $1.9 trillion coronavirus relief package early Saturday. The bill now moves to the Senate. U.S. bond yields eased on Monday after a swift rise last month on expectations of accelerated inflation due to bets on an economic rebound. The U.S. 10-year treasury yield eased to 1.419% after hitting a one-year high of 1.614%. US/ "The sentiment is risk on with more investors showing interest towards cyclical stocks while a positive vaccination drive and better macro numbers are hinting towards a better growth environment," said Keith Buchanan, portfolio manager at GLOBALT in Atlanta. Latest data showed U.S. manufacturing activity increased to a three-year high in February amid an acceleration in new orders. All major S&P sectors were higher with those that stand to benefit more from an economic rebound outperforming. Financials .SPSY, energy .SPNY, industrials .SPLRCI and materials .SPLRCM gained between 2.6% and 3%. Wall Street's main indexes ended lower last week, with the Nasdaq suffering its worst week in four months, as a rise in long-dormant yields signaled bonds are more serious investment competition, sparking a pullback in high-valuation tech stocks. Apple AAPL.O, Microsoft Corp MSFT.O, Facebook Inc FB.O and Amazon.com Inc AMZN.O rebounded between 1% and 3.9% on Monday. At 11:25 a.m. ET, the Dow Jones Industrial Average .DJI rose 685.37 points, or 2.22%, to 31,617.74, the S&P 500 .SPX gained 86.63 points, or 2.27%, to 3,897.78 and the Nasdaq Composite .IXIC gained 318.06 points, or 2.41%, to 13,510.41. Shares of cruise liner and carriers including Carnival Corp CCL.N, Delta Air Lines Inc DAL.N and American Airlines AAL.O gained between 1.9% and 4.4%. Boeing Co BA.N jumped 5.9% as United Airlines Holdings Inc UAL.O ordered 25 new 737 MAX aircraft and moved up the delivery of others as it prepares to replace aging jets and meet expected post-pandemic growth in demand. Warren Buffett's enthusiasm for the future of America and his company Berkshire Hathaway Inc BRKa.N has not been dimmed by the coronavirus pandemic, according to his annual letter to investors. Berkshire's shares rose 2.3%. Perrigo Co Plc PRGO.N jumped about 7% as the consumer healthcare products company said it would sell its underperforming generic drugs business for $1.55 billion. Advancing issues outnumbered decliners by a 5.8-to-1 ratio on the NYSE and by a 5.6-to-1 ratio on the Nasdaq. The S&P 500 posted 38 new 52-week highs and no new low, while the Nasdaq recorded 172 new highs and 45 new lows. (Reporting by Medha Singh 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.
Shares of cruise liner and carriers including Carnival Corp CCL.N, Delta Air Lines Inc DAL.N and American Airlines AAL.O gained between 1.9% and 4.4%. By Medha Singh and Shashank Nayar March 1 (Reuters) - The S&P 500 on Monday was headed for its best day since June 5 as bond markets calmed after a month-long selloff, while encouraging updates on COVID-19 vaccines and fiscal stimulus bolstered bets over a swift economic recovery. US/ "The sentiment is risk on with more investors showing interest towards cyclical stocks while a positive vaccination drive and better macro numbers are hinting towards a better growth environment," said Keith Buchanan, portfolio manager at GLOBALT in Atlanta.
Shares of cruise liner and carriers including Carnival Corp CCL.N, Delta Air Lines Inc DAL.N and American Airlines AAL.O gained between 1.9% and 4.4%. U.S. bond yields eased on Monday after a swift rise last month on expectations of accelerated inflation due to bets on an economic rebound. ET, the Dow Jones Industrial Average .DJI rose 685.37 points, or 2.22%, to 31,617.74, the S&P 500 .SPX gained 86.63 points, or 2.27%, to 3,897.78 and the Nasdaq Composite .IXIC gained 318.06 points, or 2.41%, to 13,510.41.
Shares of cruise liner and carriers including Carnival Corp CCL.N, Delta Air Lines Inc DAL.N and American Airlines AAL.O gained between 1.9% and 4.4%. The Dow was on pace for its best daily gain in nearly four months, while the Nasdaq was set for its best daily percentage gain in a month. U.S. bond yields eased on Monday after a swift rise last month on expectations of accelerated inflation due to bets on an economic rebound.
Shares of cruise liner and carriers including Carnival Corp CCL.N, Delta Air Lines Inc DAL.N and American Airlines AAL.O gained between 1.9% and 4.4%. U.S. bond yields eased on Monday after a swift rise last month on expectations of accelerated inflation due to bets on an economic rebound. ET, the Dow Jones Industrial Average .DJI rose 685.37 points, or 2.22%, to 31,617.74, the S&P 500 .SPX gained 86.63 points, or 2.27%, to 3,897.78 and the Nasdaq Composite .IXIC gained 318.06 points, or 2.41%, to 13,510.41.
4677.0
2021-02-28 00:00:00 UTC
Should The Rally Continue In Alaska Air Group Stock?
AAL
https://www.nasdaq.com/articles/should-the-rally-continue-in-alaska-air-group-stock-2021-02-28
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The shares of Alaska Air Group (NYSE: ALK) have rallied 20% in the past month reaching the pre-Covid level as the U.S. government granted a second round of payroll support to airlines. Interestingly, the shares of popular online travel company Expedia (NASDAQ: EXPE) have shot beyond February 2020 highs despite the near-term lull in travel demand. Does this indicate a buying opportunity in ALK stock? Given the recently published travel outlook by Expedia, air travel is expected to boom later during the year with the young population (Millennials and Gen Z) traveling the most. Trefis compares the historical stock price trends between airline stocks and Expedia in an interactive dashboard analysis, ALK Stock Has 53% Chance Of A Rise Over The Next Month After Rising 11% In The Last 5 Airline and OTA stocks have outperformed broader markets this year In the past 21 days, Alaska Air, JetBlue, and Spirit Airlines stocks have gained 16%, 21%, and 33%, respectively – fairly in-line with the 16% rally observed in EXPE stock. Looking at the past five-day and ten-day performance, the rally seems to be growing stronger despite a stagnation observed in broader markets. Per annual filings, Alaska Air and Expedia observed a similar 60% (y-o-y) contraction in their top line as travel demand fell to multi-year lows due to the pandemic. Does the rally in EXPE indicate a buying opportunity in ALK? With companies implementing cost control and cash preservation measures, the ratio of operating cash outflow and market capitalization can be considered as a measure of operational efficiency. Alaska Air burned $1 billion (operating cash outflow) in 2020 (excluding the impact of payroll support) and its current market capitalization stands at $7.9 billion. Similarly, Expedia burned $3.8 billion (operating cash outflow) and its current market capitalization stands at $23 billion. ALK and EXPE’s cash burn to market capitalization ratio is 12.6% and 16.5%, respectively. By achieving a similar level of operational efficiency during the pandemic, a strong rally in one creates a price discontinuity in the other. Therefore, we believe that ALK stock has room for more growth largely due to stringent cost control measures, ongoing government support, and expectations of a quick rebound in travel demand. As the slump in travel demand continues to weigh on the hospitality sector, 2020 has created many pricing discontinuities which can offer attractive trading opportunities. For example, you’ll be surprised how the stock valuation for Expeditors International vs. LGI Homes shows a disconnect with their relative operational growth. You can find many such discontinuous pairs here. See all Trefis Price Estimates and Download Trefis Data here What’s behind Trefis? See How It’s Powering New Collaboration and What-Ifs For CFOs and Finance Teams | Product, R&D, and Marketing Teams The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The shares of Alaska Air Group (NYSE: ALK) have rallied 20% in the past month reaching the pre-Covid level as the U.S. government granted a second round of payroll support to airlines. Per annual filings, Alaska Air and Expedia observed a similar 60% (y-o-y) contraction in their top line as travel demand fell to multi-year lows due to the pandemic. Therefore, we believe that ALK stock has room for more growth largely due to stringent cost control measures, ongoing government support, and expectations of a quick rebound in travel demand.
With companies implementing cost control and cash preservation measures, the ratio of operating cash outflow and market capitalization can be considered as a measure of operational efficiency. Alaska Air burned $1 billion (operating cash outflow) in 2020 (excluding the impact of payroll support) and its current market capitalization stands at $7.9 billion. Similarly, Expedia burned $3.8 billion (operating cash outflow) and its current market capitalization stands at $23 billion.
Trefis compares the historical stock price trends between airline stocks and Expedia in an interactive dashboard analysis, ALK Stock Has 53% Chance Of A Rise Over The Next Month After Rising 11% In The Last 5 Airline and OTA stocks have outperformed broader markets this year In the past 21 days, Alaska Air, JetBlue, and Spirit Airlines stocks have gained 16%, 21%, and 33%, respectively – fairly in-line with the 16% rally observed in EXPE stock. With companies implementing cost control and cash preservation measures, the ratio of operating cash outflow and market capitalization can be considered as a measure of operational efficiency. Alaska Air burned $1 billion (operating cash outflow) in 2020 (excluding the impact of payroll support) and its current market capitalization stands at $7.9 billion.
Trefis compares the historical stock price trends between airline stocks and Expedia in an interactive dashboard analysis, ALK Stock Has 53% Chance Of A Rise Over The Next Month After Rising 11% In The Last 5 Airline and OTA stocks have outperformed broader markets this year In the past 21 days, Alaska Air, JetBlue, and Spirit Airlines stocks have gained 16%, 21%, and 33%, respectively – fairly in-line with the 16% rally observed in EXPE stock. By achieving a similar level of operational efficiency during the pandemic, a strong rally in one creates a price discontinuity in the other. Therefore, we believe that ALK stock has room for more growth largely due to stringent cost control measures, ongoing government support, and expectations of a quick rebound in travel demand.
4678.0
2021-02-26 00:00:00 UTC
Coal miner Cerrejon says reached deal with indigenous community on environment, health
AAL
https://www.nasdaq.com/articles/coal-miner-cerrejon-says-reached-deal-with-indigenous-community-on-environment-health-0
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Adds comment from lawyer rejecting deal BOGOTA, Feb 26 (Reuters) - Colombian coal mine Cerrejon said on Friday it has signed an agreement with a Wayuu indigenous community to comply with court-ordered environmental and health requirements. The Provincial community in La Guajira has long argued with the company, which is jointly owned by BHP Group BHP.AX, Anglo American Plc AAL.L and Glencore Plc GLEN.L, over pollution, dust, noise, water use and health problems. Colombia's Constitutional Court previously ordered Cerrejon to comply with requirements aimed at protecting health and the environment, while a United Nations Special Rapporteur last year called on the government to suspend some of the mine's operations on the concerns. The agreement, which the company said was signed by Cerrejon and the leader of Provincial, includes building a community health center and an environmental rehabilitation program, which will include planting 250,000 trees. The company will implement a court-ordered program to clean community facilities and nearby areas over the next five years and will also provide technical support for measuring air quality, the statement shared by Cerrejon said. "The perfecting of this agreement is a result of a consensus by the members of the reservation, with the participation of traditional authorities, the community head, leaders and a full community assembly," the statement said. The Provincial community would not recognize any statements which did not come from its authorities, the statement added. Lawyers representing the community members who requested the intervention by the Special Rapporteur last year rejected the statement from Cerrejon, however. "This so-called deal is a misinformation strategy that forms part of the fraudulent and bad faith conduct with which Cerrejon operates," lawyer Rosa Mateus told Reuters in an email. The company was battered last year by a record 91-day strike and reduced activity while it put in place coronavirus control measures. The miner produced 12.4 million tonnes of coal in 2020, down almost 52% from 2019, and its exports fell to their lowest in the last 18 years. (Reporting by Julia Symmes Cobb; Additional reporting by Oliver Griffin; Editing by Richard Chang and Sonya Hepinstall) ((julia.cobb@thomsonreuters.com; +57-316-389-7187;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The Provincial community in La Guajira has long argued with the company, which is jointly owned by BHP Group BHP.AX, Anglo American Plc AAL.L and Glencore Plc GLEN.L, over pollution, dust, noise, water use and health problems. Adds comment from lawyer rejecting deal BOGOTA, Feb 26 (Reuters) - Colombian coal mine Cerrejon said on Friday it has signed an agreement with a Wayuu indigenous community to comply with court-ordered environmental and health requirements. Colombia's Constitutional Court previously ordered Cerrejon to comply with requirements aimed at protecting health and the environment, while a United Nations Special Rapporteur last year called on the government to suspend some of the mine's operations on the concerns.
The Provincial community in La Guajira has long argued with the company, which is jointly owned by BHP Group BHP.AX, Anglo American Plc AAL.L and Glencore Plc GLEN.L, over pollution, dust, noise, water use and health problems. Adds comment from lawyer rejecting deal BOGOTA, Feb 26 (Reuters) - Colombian coal mine Cerrejon said on Friday it has signed an agreement with a Wayuu indigenous community to comply with court-ordered environmental and health requirements. The agreement, which the company said was signed by Cerrejon and the leader of Provincial, includes building a community health center and an environmental rehabilitation program, which will include planting 250,000 trees.
The Provincial community in La Guajira has long argued with the company, which is jointly owned by BHP Group BHP.AX, Anglo American Plc AAL.L and Glencore Plc GLEN.L, over pollution, dust, noise, water use and health problems. Adds comment from lawyer rejecting deal BOGOTA, Feb 26 (Reuters) - Colombian coal mine Cerrejon said on Friday it has signed an agreement with a Wayuu indigenous community to comply with court-ordered environmental and health requirements. The agreement, which the company said was signed by Cerrejon and the leader of Provincial, includes building a community health center and an environmental rehabilitation program, which will include planting 250,000 trees.
The Provincial community in La Guajira has long argued with the company, which is jointly owned by BHP Group BHP.AX, Anglo American Plc AAL.L and Glencore Plc GLEN.L, over pollution, dust, noise, water use and health problems. Adds comment from lawyer rejecting deal BOGOTA, Feb 26 (Reuters) - Colombian coal mine Cerrejon said on Friday it has signed an agreement with a Wayuu indigenous community to comply with court-ordered environmental and health requirements. Lawyers representing the community members who requested the intervention by the Special Rapporteur last year rejected the statement from Cerrejon, however.
4679.0
2021-02-26 00:00:00 UTC
Airline CEOs urge White House support for greener aviation fuel
AAL
https://www.nasdaq.com/articles/airline-ceos-urge-white-house-support-for-greener-aviation-fuel-2021-02-26
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By David Shepardson and Tracy Rucinski WASHINGTON, Feb 26 (Reuters) - The CEOs of American Airlines AAL.O, United Airlines UAL.O and Delta Air Lines DAL.N and other airline officials met virtually with White House officials Friday to discuss tackling aviation pollution and urge U.S. support for greener aviation fuel. United Chief Executive Scott Kirby made clear the carrier was fully committed to confronting the climate crisis and sought White House support for "incentives for sustainable aviation fuel and carbon capture in the forthcoming economic stimulus proposal," the airline said in a statement. White House National Climate Advisor Gina McCarthy, economic adviser Brian Deese and Transportation Secretary Pete Buttigieg took part in the meeting, including discussion of using biofuels to power air travel and reduce carbon emissions. Reuters first reported the planned meeting. U.S airlines and renewables companies have been lobbying the Biden administration to back a big increase in subsidies for lower-carbon aviation fuel, arguing new incentives are needed to help fight climate change and will also make their recovery from the pandemic much greener. The White House said in a statement the officials were "optimistic to hear airline leaders share information about the industry’s ongoing and future efforts to address climate change, and they offered the administration’s support to strengthen and advance the airlines’ climate goals." Currently, Airlines for America (A4A), the industry trade group, uses only about 1.5 million gallons of green plane fuel in the United States a year, out of a total commercial jet fuel market that exceeds 620 million barrels. The price of sustainable aviation fuel can be three or four times higher than traditional jet fuel, making it uneconomical without government support, A4A told Reuters earlier. A4A CEO Nick Calio said airlines had "a positive, constructive conversation about our shared commitment to fighting climate change. Airlines are ready, willing and able partners." (Reporting by David Shepardson and Tracy Rucinski; editing by John Stonestreet) ((David.Shepardson@thomsonreuters.com; 2028988324;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
By David Shepardson and Tracy Rucinski WASHINGTON, Feb 26 (Reuters) - The CEOs of American Airlines AAL.O, United Airlines UAL.O and Delta Air Lines DAL.N and other airline officials met virtually with White House officials Friday to discuss tackling aviation pollution and urge U.S. support for greener aviation fuel. United Chief Executive Scott Kirby made clear the carrier was fully committed to confronting the climate crisis and sought White House support for "incentives for sustainable aviation fuel and carbon capture in the forthcoming economic stimulus proposal," the airline said in a statement. White House National Climate Advisor Gina McCarthy, economic adviser Brian Deese and Transportation Secretary Pete Buttigieg took part in the meeting, including discussion of using biofuels to power air travel and reduce carbon emissions.
By David Shepardson and Tracy Rucinski WASHINGTON, Feb 26 (Reuters) - The CEOs of American Airlines AAL.O, United Airlines UAL.O and Delta Air Lines DAL.N and other airline officials met virtually with White House officials Friday to discuss tackling aviation pollution and urge U.S. support for greener aviation fuel. United Chief Executive Scott Kirby made clear the carrier was fully committed to confronting the climate crisis and sought White House support for "incentives for sustainable aviation fuel and carbon capture in the forthcoming economic stimulus proposal," the airline said in a statement. A4A CEO Nick Calio said airlines had "a positive, constructive conversation about our shared commitment to fighting climate change.
By David Shepardson and Tracy Rucinski WASHINGTON, Feb 26 (Reuters) - The CEOs of American Airlines AAL.O, United Airlines UAL.O and Delta Air Lines DAL.N and other airline officials met virtually with White House officials Friday to discuss tackling aviation pollution and urge U.S. support for greener aviation fuel. United Chief Executive Scott Kirby made clear the carrier was fully committed to confronting the climate crisis and sought White House support for "incentives for sustainable aviation fuel and carbon capture in the forthcoming economic stimulus proposal," the airline said in a statement. The White House said in a statement the officials were "optimistic to hear airline leaders share information about the industry’s ongoing and future efforts to address climate change, and they offered the administration’s support to strengthen and advance the airlines’ climate goals."
By David Shepardson and Tracy Rucinski WASHINGTON, Feb 26 (Reuters) - The CEOs of American Airlines AAL.O, United Airlines UAL.O and Delta Air Lines DAL.N and other airline officials met virtually with White House officials Friday to discuss tackling aviation pollution and urge U.S. support for greener aviation fuel. United Chief Executive Scott Kirby made clear the carrier was fully committed to confronting the climate crisis and sought White House support for "incentives for sustainable aviation fuel and carbon capture in the forthcoming economic stimulus proposal," the airline said in a statement. The White House said in a statement the officials were "optimistic to hear airline leaders share information about the industry’s ongoing and future efforts to address climate change, and they offered the administration’s support to strengthen and advance the airlines’ climate goals."
4680.0
2021-02-26 00:00:00 UTC
Coal miner Cerrejon says reached deal with indigenous community on environment, health
AAL
https://www.nasdaq.com/articles/coal-miner-cerrejon-says-reached-deal-with-indigenous-community-on-environment-health-2021
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BOGOTA, Feb 26 (Reuters) - Colombian coal mine Cerrejon said on Friday it has signed an agreement with a Wayuu indigenous community to comply with court-ordered environmental and health requirements. The Provincial community in La Guajira has long argued with the company, which is jointly owned by BHP Group BHP.AX, Anglo American Plc AAL.L and Glencore Plc GLEN.L, over pollution, dust, noise, water use and health problems. Colombia's Constitutional Court previously ordered Cerrejon to comply with requirements aimed at protecting health and the environment, while a United Nations Special Rapporteur last year called on the government to suspend some of the mine's operations on the concerns. The agreement, which the company said was signed by Cerrejon and the leader of Provincial, includes building a community health center and an environmental rehabilitation program, which will include planting 250,000 trees. The company will implement a court-ordered program to clean community facilities and nearby areas over the next five years and will also provide technical support for measuring air quality, the statement shared by Cerrejon said. "The perfecting of this agreement is a result of a consensus by the members of the reservation, with the participation of traditional authorities, the community head, leaders and a full community assembly," the statement said. The Provincial community would not recognize any statements which did not come from its authorities, the statement added. Lawyers representing the community members who requested the intervention by the Special Rapporteur last year and who rejected an initial deal with Cerrejon did not immediately respond to a request for comment. The company was battered last year by a record 91-day strike and reduced activity while it put in place coronavirus control measures. The miner produced 12.4 million tonnes of coal in 2020, down almost 52% from 2019, and its exports fell to their lowest in the last 18 years. (Reporting by Julia Symmes Cobb; Editing by Richard Chang) ((julia.cobb@thomsonreuters.com; +57-316-389-7187;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The Provincial community in La Guajira has long argued with the company, which is jointly owned by BHP Group BHP.AX, Anglo American Plc AAL.L and Glencore Plc GLEN.L, over pollution, dust, noise, water use and health problems. BOGOTA, Feb 26 (Reuters) - Colombian coal mine Cerrejon said on Friday it has signed an agreement with a Wayuu indigenous community to comply with court-ordered environmental and health requirements. Colombia's Constitutional Court previously ordered Cerrejon to comply with requirements aimed at protecting health and the environment, while a United Nations Special Rapporteur last year called on the government to suspend some of the mine's operations on the concerns.
The Provincial community in La Guajira has long argued with the company, which is jointly owned by BHP Group BHP.AX, Anglo American Plc AAL.L and Glencore Plc GLEN.L, over pollution, dust, noise, water use and health problems. BOGOTA, Feb 26 (Reuters) - Colombian coal mine Cerrejon said on Friday it has signed an agreement with a Wayuu indigenous community to comply with court-ordered environmental and health requirements. Colombia's Constitutional Court previously ordered Cerrejon to comply with requirements aimed at protecting health and the environment, while a United Nations Special Rapporteur last year called on the government to suspend some of the mine's operations on the concerns.
The Provincial community in La Guajira has long argued with the company, which is jointly owned by BHP Group BHP.AX, Anglo American Plc AAL.L and Glencore Plc GLEN.L, over pollution, dust, noise, water use and health problems. The agreement, which the company said was signed by Cerrejon and the leader of Provincial, includes building a community health center and an environmental rehabilitation program, which will include planting 250,000 trees. The company will implement a court-ordered program to clean community facilities and nearby areas over the next five years and will also provide technical support for measuring air quality, the statement shared by Cerrejon said.
The Provincial community in La Guajira has long argued with the company, which is jointly owned by BHP Group BHP.AX, Anglo American Plc AAL.L and Glencore Plc GLEN.L, over pollution, dust, noise, water use and health problems. BOGOTA, Feb 26 (Reuters) - Colombian coal mine Cerrejon said on Friday it has signed an agreement with a Wayuu indigenous community to comply with court-ordered environmental and health requirements. The company will implement a court-ordered program to clean community facilities and nearby areas over the next five years and will also provide technical support for measuring air quality, the statement shared by Cerrejon said.
4681.0
2021-02-26 00:00:00 UTC
United Airlines to pay $49.5 mln to settle U.S. international mail contract probe
AAL
https://www.nasdaq.com/articles/united-airlines-to-pay-%2449.5-mln-to-settle-u.s.-international-mail-contract-probe-2021-02
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By David Shepardson WASHINGTON, Feb 26 (Reuters) - United Airlines UAL.O agreed to pay $49.5 million to resolve criminal charges and civil claims relating to fraud on Postal Service contracts for transportation of international mail, the U.S. Justice Department said Friday. "United defrauded the U.S. Postal Service by providing falsified parcel delivery information over a period of years and accepting millions of dollars of payments to which the company was not entitled," the Justice Department's acting criminal division chief Nicholas L. McQuaidsaid. United did not immediately comment. The Justice Department said between 2012 and 2015, United defrauded the U.S. Postal Service (USPS) by submitting false delivery scan data. The government said United submitted automated delivery scans based on aspirational delivery times. The government said some individuals at United sought "to hide the automation practices included efforts to revise the falsified delivery times to make the automated scans appear less suspicious to USPS." United agreed to strengthen its compliance program and to submit yearly reports to the Justice Department detailing the status of remediation and implementation of United’s compliance program and internal controls. The government cited United’s prior history, including a 2016 non-prosecution agreement relating to potential criminal bribery violations arising out of United’s establishment and operation of a non-stop route between Newark Liberty International Airport and Columbia Metropolitan Airport in South Carolina. In 2019, American Airlines paid $22.1 million to settle claims it falsely reported the times it transferred possession of U.S. mail to foreign postal administrations or other intended recipients, the U.S. Justice Department said. USPS contracted with American to take possession of receptacles of U.S. mail at six locations and then deliver it to numerous international and domestic destinations. The settlement resolves claims American Airlines falsely reported the times it transferred possession of the mail. American did not immediately comment Tuesday. (Reporting by David Shepardson Editing by Chizu Nomiyama and Nick Zieminski) ((David.Shepardson@thomsonreuters.com; 2028988324;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
By David Shepardson WASHINGTON, Feb 26 (Reuters) - United Airlines UAL.O agreed to pay $49.5 million to resolve criminal charges and civil claims relating to fraud on Postal Service contracts for transportation of international mail, the U.S. Justice Department said Friday. Postal Service by providing falsified parcel delivery information over a period of years and accepting millions of dollars of payments to which the company was not entitled," the Justice Department's acting criminal division chief Nicholas L. McQuaidsaid. In 2019, American Airlines paid $22.1 million to settle claims it falsely reported the times it transferred possession of U.S. mail to foreign postal administrations or other intended recipients, the U.S. Justice Department said.
By David Shepardson WASHINGTON, Feb 26 (Reuters) - United Airlines UAL.O agreed to pay $49.5 million to resolve criminal charges and civil claims relating to fraud on Postal Service contracts for transportation of international mail, the U.S. Justice Department said Friday. Postal Service (USPS) by submitting false delivery scan data. The settlement resolves claims American Airlines falsely reported the times it transferred possession of the mail.
By David Shepardson WASHINGTON, Feb 26 (Reuters) - United Airlines UAL.O agreed to pay $49.5 million to resolve criminal charges and civil claims relating to fraud on Postal Service contracts for transportation of international mail, the U.S. Justice Department said Friday. United agreed to strengthen its compliance program and to submit yearly reports to the Justice Department detailing the status of remediation and implementation of United’s compliance program and internal controls. In 2019, American Airlines paid $22.1 million to settle claims it falsely reported the times it transferred possession of U.S. mail to foreign postal administrations or other intended recipients, the U.S. Justice Department said.
By David Shepardson WASHINGTON, Feb 26 (Reuters) - United Airlines UAL.O agreed to pay $49.5 million to resolve criminal charges and civil claims relating to fraud on Postal Service contracts for transportation of international mail, the U.S. Justice Department said Friday. The Justice Department said between 2012 and 2015, United defrauded the U.S. Postal Service (USPS) by submitting false delivery scan data.
4682.0
2021-02-26 00:00:00 UTC
Pre-Market Most Active for Feb 26, 2021 : AMC, SQQQ, QQQ, GME, NIO, PLTR, CCIV, SOS, AAPL, TQQQ, AAL, TSLA
AAL
https://www.nasdaq.com/articles/pre-market-most-active-for-feb-26-2021-%3A-amc-sqqq-qqq-gme-nio-pltr-cciv-sos-aapl-tqqq-aal
nan
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The NASDAQ 100 Pre-Market Indicator is up 105.9 to 12,934.21. The total Pre-Market volume is currently 31,508,157 shares traded. The following are the most active stocks for the pre-market session: AMC Entertainment Holdings, Inc. (AMC) is -0.08 at $8.21, with 6,041,755 shares traded. AMC's current last sale is 205.25% of the target price of $4. ProShares UltraPro Short QQQ (SQQQ) is -0.09 at $14.61, with 4,990,871 shares traded. This represents a 24.23% increase from its 52 Week Low. Invesco QQQ Trust, Series 1 (QQQ) is +0.505 at $313.34, with 3,028,287 shares traded. This represents a 89.98% increase from its 52 Week Low. Gamestop Corporation (GME) is +11.5 at $120.23, with 2,845,973 shares traded. GME's current last sale is 858.79% of the target price of $14. NIO Inc. (NIO) is -1.45 at $45.36, with 2,397,424 shares traded.NIO is scheduled to provide an earnings report on 3/1/2021, for the fiscal quarter ending Dec2020. The consensus earnings per share forecast is -0.16 per share, which represents a -40 percent increase over the EPS one Year Ago Palantir Technologies Inc. (PLTR) is -0.56 at $23.40, with 2,319,881 shares traded. PLTR's current last sale is 156% of the target price of $15. Churchill Capital Corp IV (CCIV) is +1.74 at $29.56, with 2,071,134 shares traded. SOS Limited (SOS) is -0.66 at $5.38, with 1,831,868 shares traded. Apple Inc. (AAPL) is +0.45 at $121.44, with 1,538,159 shares traded. Over the last four weeks they have had 7 up revisions for the earnings forecast, for the fiscal quarter ending Mar 2021. The consensus EPS forecast is $0.99. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". ProShares UltraPro QQQ (TQQQ) is +0.41 at $88.31, with 1,091,795 shares traded. This represents a 447.32% increase from its 52 Week Low. American Airlines Group, Inc. (AAL) is -0.5 at $20.36, with 819,511 shares traded. AAL's current last sale is 156.62% of the target price of $13. Tesla, Inc. (TSLA) is -3.22 at $679.00, with 810,905 shares traded. TSLA's current last sale is 117.47% of the target price of $578. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
American Airlines Group, Inc. (AAL) is -0.5 at $20.36, with 819,511 shares traded. AAL's current last sale is 156.62% of the target price of $13. Churchill Capital Corp IV (CCIV) is +1.74 at $29.56, with 2,071,134 shares traded.
American Airlines Group, Inc. (AAL) is -0.5 at $20.36, with 819,511 shares traded. AAL's current last sale is 156.62% of the target price of $13. NIO Inc. (NIO) is -1.45 at $45.36, with 2,397,424 shares traded.NIO is scheduled to provide an earnings report on 3/1/2021, for the fiscal quarter ending Dec2020.
American Airlines Group, Inc. (AAL) is -0.5 at $20.36, with 819,511 shares traded. AAL's current last sale is 156.62% of the target price of $13. The total Pre-Market volume is currently 31,508,157 shares traded.
American Airlines Group, Inc. (AAL) is -0.5 at $20.36, with 819,511 shares traded. AAL's current last sale is 156.62% of the target price of $13. The NASDAQ 100 Pre-Market Indicator is up 105.9 to 12,934.21.
4683.0
2021-02-25 00:00:00 UTC
Interesting AAL Put And Call Options For April 9th
AAL
https://www.nasdaq.com/articles/interesting-aal-put-and-call-options-for-april-9th-2021-02-25
nan
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Investors in American Airlines Group Inc (Symbol: AAL) saw new options become available today, for the April 9th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new April 9th contracts and identified one put and one call contract of particular interest. The put contract at the $20.50 strike price has a current bid of $1.16. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $20.50, but will also collect the premium, putting the cost basis of the shares at $19.34 (before broker commissions). To an investor already interested in purchasing shares of AAL, that could represent an attractive alternative to paying $21.20/share today. Because the $20.50 strike represents an approximate 3% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 100%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 5.66% return on the cash commitment, or 48.08% 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 $20.50 strike is located relative to that history: Turning to the calls side of the option chain, the call contract at the $24.00 strike price has a current bid of 82 cents. If an investor was to purchase shares of AAL stock at the current price level of $21.20/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $24.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 17.08% if the stock gets called away at the April 9th 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 $24.00 strike highlighted in red: Considering the fact that the $24.00 strike represents an approximate 13% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 3.87% boost of extra return to the investor, or 32.86% annualized, which we refer to as the YieldBoost. Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 252 trading day closing values as well as today's price of $21.20) to be 101%. 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.
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 $24.00 strike highlighted in red: Considering the fact that the $24.00 strike represents an approximate 13% 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 April 9th expiration.
Below is a chart showing AAL's trailing twelve month trading history, with the $24.00 strike highlighted in red: Considering the fact that the $24.00 strike represents an approximate 13% 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 April 9th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new April 9th contracts and identified one put and one call contract of particular interest.
Below is a chart showing AAL's trailing twelve month trading history, with the $24.00 strike highlighted in red: Considering the fact that the $24.00 strike represents an approximate 13% 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 April 9th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new April 9th contracts and identified one put and one call contract of particular interest.
Below is a chart showing AAL's trailing twelve month trading history, with the $24.00 strike highlighted in red: Considering the fact that the $24.00 strike represents an approximate 13% 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 April 9th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new April 9th contracts and identified one put and one call contract of particular interest.
4684.0
2021-02-25 00:00:00 UTC
Pre-Market Most Active for Feb 25, 2021 : AMC, GME, NOK, CCIV, EXPR, PLTR, ASRV, SQQQ, LI, QQQ, AAL, AAPL
AAL
https://www.nasdaq.com/articles/pre-market-most-active-for-feb-25-2021-%3A-amc-gme-nok-cciv-expr-pltr-asrv-sqqq-li-qqq-aal
nan
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The NASDAQ 100 Pre-Market Indicator is down -87.4 to 13,214.79. The total Pre-Market volume is currently 31,817,491 shares traded. The following are the most active stocks for the pre-market session: AMC Entertainment Holdings, Inc. (AMC) is +1.3 at $10.39, with 26,065,570 shares traded. Business Wire Reports: AMC Completes At the Market Equity Program Gamestop Corporation (GME) is +60.44 at $152.15, with 9,091,739 shares traded. GME's current last sale is 1,086.79% of the target price of $14. Nokia Corporation (NOK) is +0.23 at $4.27, with 8,227,905 shares traded. NOK's current last sale is 88.04% of the target price of $4.85. Churchill Capital Corp IV (CCIV) is +0.53 at $29.23, with 4,810,282 shares traded. Express, Inc. (EXPR) is +0.33 at $3.58, with 4,253,862 shares traded. EXPR's current last sale is 238.67% of the target price of $1.5. Palantir Technologies Inc. (PLTR) is -0.7 at $25.69, with 2,429,383 shares traded. PLTR's current last sale is 171.27% of the target price of $15. AmeriServ Financial Inc. (ASRV) is +1.09 at $5.20, with 2,364,695 shares traded. ProShares UltraPro Short QQQ (SQQQ) is +0.41 at $13.70, with 2,112,292 shares traded. This represents a 16.5% increase from its 52 Week Low. Li Auto Inc. (LI) is +0.21 at $28.89, with 1,840,192 shares traded. GlobeNewswire Reports: Li Auto Inc. Announces Safety Evaluation Results Invesco QQQ Trust, Series 1 (QQQ) is -3.24 at $320.89, with 1,258,060 shares traded. This represents a 94.56% increase from its 52 Week Low. American Airlines Group, Inc. (AAL) is +0.4 at $22.22, with 1,233,158 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 $-0.49. AAL's current last sale is 170.92% of the target price of $13. Apple Inc. (AAPL) is -0.98 at $124.37, with 1,006,070 shares traded. Over the last four weeks they have had 7 up revisions for the earnings forecast, for the fiscal quarter ending Mar 2021. The consensus EPS forecast is $0.99. As reported by Zacks, the current mean recommendation for AAPL 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.
American Airlines Group, Inc. (AAL) is +0.4 at $22.22, with 1,233,158 shares traded. AAL's current last sale is 170.92% of the target price of $13. Business Wire Reports: AMC Completes At the Market Equity Program
American Airlines Group, Inc. (AAL) is +0.4 at $22.22, with 1,233,158 shares traded. AAL's current last sale is 170.92% of the target price of $13. Li Auto Inc. (LI) is +0.21 at $28.89, with 1,840,192 shares traded.
American Airlines Group, Inc. (AAL) is +0.4 at $22.22, with 1,233,158 shares traded. AAL's current last sale is 170.92% of the target price of $13. The total Pre-Market volume is currently 31,817,491 shares traded.
American Airlines Group, Inc. (AAL) is +0.4 at $22.22, with 1,233,158 shares traded. AAL's current last sale is 170.92% of the target price of $13. PLTR's current last sale is 171.27% of the target price of $15.
4685.0
2021-02-25 00:00:00 UTC
Anglo American boosts 2020 dividends as metals prices climb
AAL
https://www.nasdaq.com/articles/anglo-american-boosts-2020-dividends-as-metals-prices-climb-2021-02-25-0
nan
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Adds detail LONDON, Feb 25 (Reuters) - Anglo American AAL.L posted a slight fall in profits for 2020 but boosted dividends after strong commodity prices helped the diversified miner recover from coronavirus disruptions suffered in its first half. Underlying earnings before interest, tax, depreciation and amortisation (EBITDA), a measure closely watched by analysts, fell 2% to $9.8 billion in the year to December, beating a consensus of $9.4 billion from nine analysts compiled by Vuma. Anglo declared a final dividend of 72 cents per share, in line with its 40% payout policy and up 53% from a year earlier. "It was certainly a year of two halves," Chief Executive Mark Cutifani told reporters of the strong recovery in the second half. Anglo was the worst hit among its peers by coronavirus lockdowns in many of its operating countries, including South Africa, Botswana and Namibia. Net debt at the end of December stood at $5.6 billion compared to $4.6 billion a year earlier, after operational issues in its platinum assets and a hit to diamond demand raised inventories. (Reporting by Zandi Shabalala; Editing by Jan Harvey) ((zandi.shabalala@tr.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Adds detail LONDON, Feb 25 (Reuters) - Anglo American AAL.L posted a slight fall in profits for 2020 but boosted dividends after strong commodity prices helped the diversified miner recover from coronavirus disruptions suffered in its first half. "It was certainly a year of two halves," Chief Executive Mark Cutifani told reporters of the strong recovery in the second half. Anglo was the worst hit among its peers by coronavirus lockdowns in many of its operating countries, including South Africa, Botswana and Namibia.
Adds detail LONDON, Feb 25 (Reuters) - Anglo American AAL.L posted a slight fall in profits for 2020 but boosted dividends after strong commodity prices helped the diversified miner recover from coronavirus disruptions suffered in its first half. Underlying earnings before interest, tax, depreciation and amortisation (EBITDA), a measure closely watched by analysts, fell 2% to $9.8 billion in the year to December, beating a consensus of $9.4 billion from nine analysts compiled by Vuma. Anglo declared a final dividend of 72 cents per share, in line with its 40% payout policy and up 53% from a year earlier.
Adds detail LONDON, Feb 25 (Reuters) - Anglo American AAL.L posted a slight fall in profits for 2020 but boosted dividends after strong commodity prices helped the diversified miner recover from coronavirus disruptions suffered in its first half. Underlying earnings before interest, tax, depreciation and amortisation (EBITDA), a measure closely watched by analysts, fell 2% to $9.8 billion in the year to December, beating a consensus of $9.4 billion from nine analysts compiled by Vuma. Net debt at the end of December stood at $5.6 billion compared to $4.6 billion a year earlier, after operational issues in its platinum assets and a hit to diamond demand raised inventories.
Adds detail LONDON, Feb 25 (Reuters) - Anglo American AAL.L posted a slight fall in profits for 2020 but boosted dividends after strong commodity prices helped the diversified miner recover from coronavirus disruptions suffered in its first half. Underlying earnings before interest, tax, depreciation and amortisation (EBITDA), a measure closely watched by analysts, fell 2% to $9.8 billion in the year to December, beating a consensus of $9.4 billion from nine analysts compiled by Vuma. Anglo declared a final dividend of 72 cents per share, in line with its 40% payout policy and up 53% from a year earlier.
4686.0
2021-02-25 00:00:00 UTC
Anglo American boosts 2020 dividends as metals prices climb
AAL
https://www.nasdaq.com/articles/anglo-american-boosts-2020-dividends-as-metals-prices-climb-2021-02-25
nan
nan
LONDON, Feb 25 (Reuters) - Anglo American AAL.L posted a slight fall in profits for 2020 but boosted dividends after strong commodity prices helped the diversified miner recover from coronavirus disruptions suffered in its first half. Underlying earnings before interest, tax, depreciation and amortisation (EBITDA), a measure closely watched by analysts, fell 2% to $9.8 billion in the year to December, beating a consensus of $9.4 billion from nine analysts compiled by Vuma. Anglo declared a final dividend of 72 cents per share, in line with its 40% payout policy and up 53% from a year earlier. (Reporting by Zandi Shabalala; Editing by Alex Richardson) ((zandi.shabalala@tr.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
LONDON, Feb 25 (Reuters) - Anglo American AAL.L posted a slight fall in profits for 2020 but boosted dividends after strong commodity prices helped the diversified miner recover from coronavirus disruptions suffered in its first half. Underlying earnings before interest, tax, depreciation and amortisation (EBITDA), a measure closely watched by analysts, fell 2% to $9.8 billion in the year to December, beating a consensus of $9.4 billion from nine analysts compiled by Vuma. Anglo declared a final dividend of 72 cents per share, in line with its 40% payout policy and up 53% from a year earlier.
LONDON, Feb 25 (Reuters) - Anglo American AAL.L posted a slight fall in profits for 2020 but boosted dividends after strong commodity prices helped the diversified miner recover from coronavirus disruptions suffered in its first half. Underlying earnings before interest, tax, depreciation and amortisation (EBITDA), a measure closely watched by analysts, fell 2% to $9.8 billion in the year to December, beating a consensus of $9.4 billion from nine analysts compiled by Vuma. Anglo declared a final dividend of 72 cents per share, in line with its 40% payout policy and up 53% from a year earlier.
LONDON, Feb 25 (Reuters) - Anglo American AAL.L posted a slight fall in profits for 2020 but boosted dividends after strong commodity prices helped the diversified miner recover from coronavirus disruptions suffered in its first half. Underlying earnings before interest, tax, depreciation and amortisation (EBITDA), a measure closely watched by analysts, fell 2% to $9.8 billion in the year to December, beating a consensus of $9.4 billion from nine analysts compiled by Vuma. (Reporting by Zandi Shabalala; Editing by Alex Richardson) ((zandi.shabalala@tr.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
LONDON, Feb 25 (Reuters) - Anglo American AAL.L posted a slight fall in profits for 2020 but boosted dividends after strong commodity prices helped the diversified miner recover from coronavirus disruptions suffered in its first half. Underlying earnings before interest, tax, depreciation and amortisation (EBITDA), a measure closely watched by analysts, fell 2% to $9.8 billion in the year to December, beating a consensus of $9.4 billion from nine analysts compiled by Vuma. Anglo declared a final dividend of 72 cents per share, in line with its 40% payout policy and up 53% from a year earlier.
4687.0
2021-02-24 00:00:00 UTC
EXCLUSIVE-Major U.S. airline CEOs to meet Friday with White House on reducing emissions
AAL
https://www.nasdaq.com/articles/exclusive-major-u.s.-airline-ceos-to-meet-friday-with-white-house-on-reducing-emissions
nan
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WASHINGTON, Feb 24 (Reuters) - The chief executives of major U.S. airlines are set to meet virtually with two key White House advisers Friday about efforts to decarbonize airplane travel, five people briefed on the matter told Reuters. The CEOs of American Airlines AAL.O, United Airlines UAL.O, Delta Air Lines DAL.N and Southwest Airlines LUV.N are among those who have been invited to meet with White House National Climate Advisor Gina McCarthy and economic adviser Brian Deese to discuss environmental issues related to air travel, including using biofuels to power air travel. The White House and a spokeswoman for a group representing the airlines declined to comment. (Reporting by David Shepardson, Jarett Renshaw and Tracy Rucinski, Editing by Rosalba O'Brien) ((David.Shepardson@thomsonreuters.com; 2028988324;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The CEOs of American Airlines AAL.O, United Airlines UAL.O, Delta Air Lines DAL.N and Southwest Airlines LUV.N are among those who have been invited to meet with White House National Climate Advisor Gina McCarthy and economic adviser Brian Deese to discuss environmental issues related to air travel, including using biofuels to power air travel. WASHINGTON, Feb 24 (Reuters) - The chief executives of major U.S. airlines are set to meet virtually with two key White House advisers Friday about efforts to decarbonize airplane travel, five people briefed on the matter told Reuters. The White House and a spokeswoman for a group representing the airlines declined to comment.
The CEOs of American Airlines AAL.O, United Airlines UAL.O, Delta Air Lines DAL.N and Southwest Airlines LUV.N are among those who have been invited to meet with White House National Climate Advisor Gina McCarthy and economic adviser Brian Deese to discuss environmental issues related to air travel, including using biofuels to power air travel. WASHINGTON, Feb 24 (Reuters) - The chief executives of major U.S. airlines are set to meet virtually with two key White House advisers Friday about efforts to decarbonize airplane travel, five people briefed on the matter told Reuters. The White House and a spokeswoman for a group representing the airlines declined to comment.
The CEOs of American Airlines AAL.O, United Airlines UAL.O, Delta Air Lines DAL.N and Southwest Airlines LUV.N are among those who have been invited to meet with White House National Climate Advisor Gina McCarthy and economic adviser Brian Deese to discuss environmental issues related to air travel, including using biofuels to power air travel. WASHINGTON, Feb 24 (Reuters) - The chief executives of major U.S. airlines are set to meet virtually with two key White House advisers Friday about efforts to decarbonize airplane travel, five people briefed on the matter told Reuters. (Reporting by David Shepardson, Jarett Renshaw and Tracy Rucinski, Editing by Rosalba O'Brien) ((David.Shepardson@thomsonreuters.com; 2028988324;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The CEOs of American Airlines AAL.O, United Airlines UAL.O, Delta Air Lines DAL.N and Southwest Airlines LUV.N are among those who have been invited to meet with White House National Climate Advisor Gina McCarthy and economic adviser Brian Deese to discuss environmental issues related to air travel, including using biofuels to power air travel. WASHINGTON, Feb 24 (Reuters) - The chief executives of major U.S. airlines are set to meet virtually with two key White House advisers Friday about efforts to decarbonize airplane travel, five people briefed on the matter told Reuters. The White House and a spokeswoman for a group representing the airlines declined to comment.
4688.0
2021-02-24 00:00:00 UTC
Why Airline Stocks Are Up Today
AAL
https://www.nasdaq.com/articles/why-airline-stocks-are-up-today-2021-02-24
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What happened It's another good day for airlines, with their stocks again gaining altitude as part of the so-called "reopening trade" as investors flock to companies that figure to benefit as the pandemic subsides. Shares of United Airlines Holdings (NASDAQ: UAL) were up as much as 10% on Wednesday, while shares of American Airlines Group (NASDAQ: AAL) and Southwest Airlines (NYSE: LUV) both traded up more than 5%. So what The airline industry, after a miserable 2020, is staging a comeback. The pandemic wiped away travel demand and sent airlines into the red, but as vaccine rollouts continue, there is growing optimism that we will see pent-up demand for at least leisure travel by this summer. That optimism has airline stocks up off the mat. Some airlines lost more than half of their value in the early days of the pandemic, but a combination of government assistance and relatively healthy balance sheets coming into the crisis allowed the U.S. industry to avoid major bankruptcies and steadily progress higher in the months that followed. Image source: Getty Images. American and United were seen as among the most vulnerable heading into the pandemic, in part because of their reliance on business and international travel. Those tickets are likely to take longer than leisure to return. Southwest, meanwhile, has a history of going on the offensive when other airlines are struggling. And there are early indications the airline has already returned to those ways in this cycle. The week started with shares rising on a sectorwide upgrade by one Wall Street bank, and the airlines have showed few signs of losing altitude in the days that have followed. Now what It would have been crazy to suggest this six months ago, when the future of the industry was still very much in doubt, but I'm beginning to wonder if airline stocks have come too far too fast. Most of the stocks aren't quite back to pre-pandemic levels, but looking at these companies based on enterprise value (a measure of total market capitalization plus debt), some are actually up from the beginning of 2020. Airline data by YCharts. It's one thing to say airlines are safe to buy, but quite another to suggest that the sector is better off, or at least deserving of higher multiples, after having gone through the pandemic. One could argue that the airlines' ability to survive the pandemic without bankruptcies shows the former boom/bust industry is now consolidated enough to not resort to bankruptcy every time the market goes south, and therefore deserves higher valuations from here. Or it is possible that investors now assume that, since the government helped out last year to preserve employment, the industry is likely to receive help next time around as well. We'll see. I was bullish on airline stocks in the early days of the pandemic, even when others were selling. I still believe stocks like Southwest are good buy-and-hold candidates for long-term investors. But given how far we have come, and the risks that remain as we continue to fight the pandemic, I'd advise caution if considering buying into most airlines right now. 10 stocks we like better than Southwest Airlines When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Southwest Airlines wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of November 20, 2020 Lou Whiteman has no position in any of the stocks mentioned. The Motley Fool recommends 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.
Shares of United Airlines Holdings (NASDAQ: UAL) were up as much as 10% on Wednesday, while shares of American Airlines Group (NASDAQ: AAL) and Southwest Airlines (NYSE: LUV) both traded up more than 5%. What happened It's another good day for airlines, with their stocks again gaining altitude as part of the so-called "reopening trade" as investors flock to companies that figure to benefit as the pandemic subsides. Some airlines lost more than half of their value in the early days of the pandemic, but a combination of government assistance and relatively healthy balance sheets coming into the crisis allowed the U.S. industry to avoid major bankruptcies and steadily progress higher in the months that followed.
Shares of United Airlines Holdings (NASDAQ: UAL) were up as much as 10% on Wednesday, while shares of American Airlines Group (NASDAQ: AAL) and Southwest Airlines (NYSE: LUV) both traded up more than 5%. See the 10 stocks *Stock Advisor returns as of November 20, 2020 Lou Whiteman has no position in any of the stocks mentioned. The Motley Fool recommends Southwest Airlines.
Shares of United Airlines Holdings (NASDAQ: UAL) were up as much as 10% on Wednesday, while shares of American Airlines Group (NASDAQ: AAL) and Southwest Airlines (NYSE: LUV) both traded up more than 5%. What happened It's another good day for airlines, with their stocks again gaining altitude as part of the so-called "reopening trade" as investors flock to companies that figure to benefit as the pandemic subsides. 10 stocks we like better than Southwest Airlines When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen.
Shares of United Airlines Holdings (NASDAQ: UAL) were up as much as 10% on Wednesday, while shares of American Airlines Group (NASDAQ: AAL) and Southwest Airlines (NYSE: LUV) both traded up more than 5%. * David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Southwest Airlines wasn't one of them! That's right -- they think these 10 stocks are even better buys.
4689.0
2021-02-24 00:00:00 UTC
EXCLUSIVE-U.S. airline CEOs to meet with White House on cutting carbon footprint
AAL
https://www.nasdaq.com/articles/exclusive-u.s.-airline-ceos-to-meet-with-white-house-on-cutting-carbon-footprint-2021-02
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By David Shepardson, Jarrett Renshaw and Tracy Rucinski WASHINGTON, Feb 24 (Reuters) - The chief executives of major U.S. airlines are set to meet virtually with two key White House advisers on Friday about efforts to reduce carbon emissions and use renewable fuels, five people briefed on the matter told Reuters. The CEOs of American Airlines AAL.O, United Airlines UAL.O, Delta Air Lines DAL.N and Southwest Airlines LUV.N are among those who have been invited to meet with White House National Climate Adviser Gina McCarthy and economic adviser Brian Deese to discuss environmental issues related to air travel, including using greener fuels to power air travel. The White House and a spokeswoman for a group representing the airlines declined to comment. McCarthy told Reuters earlier this month she had started discussions with the utility and automobile sectors about reducing greenhouse gas emissions. She said the talks were part of a broad effort by the Biden administration to engage every federal agency to decarbonize the U.S. power sector by 2035 and the whole economy by 2050. Last week Reuters reported U.S airlines and renewable energy companies are lobbying the Biden administration to back a big increase in subsidies for lower-carbon aviation fuel. They say new incentives are needed to help fight climate change. Air travel contributes around 2% of global greenhouse gas emissions, the Air Transport Action Group said. That percentage is expected to rise rapidly in coming decades if airlines do not quickly switch to "sustainable aviation fuel." Such fuel is made from biologically sourced wastes like old cooking oil, animal fat and plant oils. It is much more expensive than traditional jet fuel. Speaking at an Axios event on the future of green travel, United Airlines Chief Executive Scott Kirby said the R&D investments needed to get the whole economy to net-zero emissions will require government support. United has committed to a multimillion-dollar investment in carbon capture, a technology designed to suck carbon dioxide from the atmosphere, as part of a plan to be 100% green by 2050. Industry trade group Airlines for America told Reuters previously it has also been in contact with the Biden administration’s climate change officials to discuss expanding the sustainable aviation fuel market. Currently, A4A members use only about 1.5 million gallons of green plane fuel in the United States a year, out of a total commercial jet fuel market that exceeds 620 million barrels annually. (One barrel of jet fuel contains 42 gallons.) Several other countries have already proposed sustainable aviation fuel mandates or are exploring them as a means of addressing increasing carbon output from air travel. A mandate in Norway came into force in January 2020, while the Netherlands is set to have one in place by 2023. European requirements are expected to be addressed at the White House meeting. Globally, more than 250,000 flights have run on sustainable aviation fuel since 2016, while an estimated 10.6 million gallons were produced in 2020, the International Air Transport Association said. Chicago-based Boeing Co BA.N has committed to fly with 100% sustainable aviation fuels by 2030, it said in January. (Reporting by David Shepardson in Washington, Jarett Renshaw in Philadelphia and Tracy Rucinski in Chicago Editing by Rosalba O'Brien and Matthew Lewis) ((David.Shepardson@thomsonreuters.com +1 202 898-8324)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The CEOs of American Airlines AAL.O, United Airlines UAL.O, Delta Air Lines DAL.N and Southwest Airlines LUV.N are among those who have been invited to meet with White House National Climate Adviser Gina McCarthy and economic adviser Brian Deese to discuss environmental issues related to air travel, including using greener fuels to power air travel. Last week Reuters reported U.S airlines and renewable energy companies are lobbying the Biden administration to back a big increase in subsidies for lower-carbon aviation fuel. Speaking at an Axios event on the future of green travel, United Airlines Chief Executive Scott Kirby said the R&D investments needed to get the whole economy to net-zero emissions will require government support.
The CEOs of American Airlines AAL.O, United Airlines UAL.O, Delta Air Lines DAL.N and Southwest Airlines LUV.N are among those who have been invited to meet with White House National Climate Adviser Gina McCarthy and economic adviser Brian Deese to discuss environmental issues related to air travel, including using greener fuels to power air travel. By David Shepardson, Jarrett Renshaw and Tracy Rucinski WASHINGTON, Feb 24 (Reuters) - The chief executives of major U.S. airlines are set to meet virtually with two key White House advisers on Friday about efforts to reduce carbon emissions and use renewable fuels, five people briefed on the matter told Reuters. Air travel contributes around 2% of global greenhouse gas emissions, the Air Transport Action Group said.
The CEOs of American Airlines AAL.O, United Airlines UAL.O, Delta Air Lines DAL.N and Southwest Airlines LUV.N are among those who have been invited to meet with White House National Climate Adviser Gina McCarthy and economic adviser Brian Deese to discuss environmental issues related to air travel, including using greener fuels to power air travel. By David Shepardson, Jarrett Renshaw and Tracy Rucinski WASHINGTON, Feb 24 (Reuters) - The chief executives of major U.S. airlines are set to meet virtually with two key White House advisers on Friday about efforts to reduce carbon emissions and use renewable fuels, five people briefed on the matter told Reuters. Industry trade group Airlines for America told Reuters previously it has also been in contact with the Biden administration’s climate change officials to discuss expanding the sustainable aviation fuel market.
The CEOs of American Airlines AAL.O, United Airlines UAL.O, Delta Air Lines DAL.N and Southwest Airlines LUV.N are among those who have been invited to meet with White House National Climate Adviser Gina McCarthy and economic adviser Brian Deese to discuss environmental issues related to air travel, including using greener fuels to power air travel. By David Shepardson, Jarrett Renshaw and Tracy Rucinski WASHINGTON, Feb 24 (Reuters) - The chief executives of major U.S. airlines are set to meet virtually with two key White House advisers on Friday about efforts to reduce carbon emissions and use renewable fuels, five people briefed on the matter told Reuters. Industry trade group Airlines for America told Reuters previously it has also been in contact with the Biden administration’s climate change officials to discuss expanding the sustainable aviation fuel market.
4690.0
2021-02-23 00:00:00 UTC
Are These The Best Epicenter Stocks To Buy Right Now? 4 Names To Watch
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https://www.nasdaq.com/articles/are-these-the-best-epicenter-stocks-to-buy-right-now-4-names-to-watch-2021-02-23
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These 4 Epicenter Stocks Have Been Trending In The Market This Year What are epicenter stocks? Originally coined by Fundstrat’s Tom Lee, “epicenter stocks” are companies that were hit hardest during the pandemic, but stand to benefit the most from an economic reopening. Now, it appears that new daily infections are on the decline with the global vaccine rollout. Many are jumping on the assumption that the pandemic may be over soon, if so, you may want to check out the top epicenter stocks to buy right now. The current bull argument is that top epicenter stocks could be looking at the biggest recoveries once the pandemic comes to an end. Logically, positive vaccine news would incentivize investors to turn towards epicenter stocks. Of course, the idea of betting on epidemiological trends can be risky. While the infection data seems encouraging, no one can say for sure if the vaccines could offer full protection against the new variants. That said, some protection is better than no protection. After all, vaccine rollout has been crucial in addressing the prior surge in coronavirus cases. And now, the Israeli studies show that the Pfizer (NYSE: PFE) and BioNTech (NASDAQ: BNTX) COVID-19 vaccine appeared to stop the vast majority of recipients in Israeli from becoming infected. This provides the first real-world indication that immunization will curb transmission of the coronavirus. With global vaccines continuing to roll out, we could very well be on the road to recovery. If that’s the case, you might want to put up a list of the best epicenter stocks to buy before we can indeed confirm a recovery. Best Epicenter Stocks To Buy [Or Sell] Now American Airlines Group (NASDAQ: AAL) Royal Caribbean Group (NYSE: RCL) TripAdvisor Inc. (NASDAQ: TRIP) AMC Entertainment Holdings (NYSE: AMC) American Airlines Group First up, American Airlines seems ready for take-off after gaining nearly 10% while the broader market took a hit. If you have been following our feeds on StockMarket.com, the story here should be familiar. Airline stocks took a major hit during the onset of the pandemic. And with the COVID-19 situation improving amid a global vaccine rollout, investors are starting to pay attention to the aviation space. What really triggered a spike among top airline stocks was the sector-wide upgrade from Deutsche Bank’s analyst, Michael Linenberg. While he appears to have some reservations about the valuation of the stock, he believes airline stocks have considerable upside. More travelers will fly when it is safe to do so. It is not a matter of if, but when. Therefore, airlines and their stocks will eventually recover. The question is in getting on board early enough. What’s more, with the recent vaccine news from Israel, the road to recovery for AAL stock may be a smooth one. Read More 4 Top EV Stocks To Watch This Week Making A List Of The Top Growth Stocks To Buy This Week? 4 Names To Watch Royal Caribbean Group Coming up next, Royal Caribbean Group is another epicenter stock bucking the trend when the market goes south. Royal Caribbean Group is the largest cruise line company in the entire world. Additionally, it is the second-largest cruise line in the world by passengers. The company holds more than 14% of the cruise line market by revenue and 19% by passengers. That makes it a top candidate for recovery if this sector is able to perform better. The company’s shares were surging Monday following the release of the company’s fourth-quarter results. This came amid a smaller-than-expected loss from the company. To top it all off, Royal Caribbean CEO says booking data for cruises suggests a surprisingly positive post-COVID-19 recovery, and investors were delighted. “We thought almost everybody was going to be an experienced cruiser because they’re the ones who understood cruising and were anxious to come back. “Yet, in our Singapore operation, 80% of our guests have been first-timers. So we’re getting a lot of surprising data as things come out, and it’s mostly positive.”- Richard Fain, CEO of Royal Caribbean [Read More] DoorDash (DASH) VS Airbnb (ABNB): Which IPO Stock Is A Better Buy? TripAdvisor Inc. Another epicenter stock worth putting on your watch list is TripAdvisor. The company has been steadily climbing since November amid strong vaccine efficacy data and approvals. Following positive news on the vaccine front, the online travel booking site could see a very strong upside once COVID-19 is relatively under control. That said, the company is not resting on its laurels while waiting for the pandemic to be over. The real reason why TRIP stock soared on Monday’s trading was because of its new direct-to-consumer subscription offering, TripAdvisor Plus. Bernstein analyst Richard Clarke, who rates the company outperform, raised his price target on the shares to $45 from $40. “Despite being in beta stage, confined to certain areas of the U.S., and without a full basket of direct supply, it is still something to get excited about.” Clarke said of the Plus subscription product, according to Bloomberg. Should the company be able to successfully monetize Tripadvisor Plus, it would serve as a meaningful driver of user monetization on the platform. In case you are wondering, TRIP stocks are up more than 35% just this month alone. With the introduction of the new offering, besides the reopening tailwinds, would you add TRIP stock to your watch list right now? [Read More] Looking For The Best Stocks To Buy Ahead Of March? 4 Tech Stocks To Consider AMC Entertainment Holdings If you have been trading in the stock market in recent months, AMC stock needs no introduction. The cinema operators’ stock was on everyone’s radar next to GameStop (NYSE: GME) amid brinkmanship between Wall Street banks and retail traders. But today, the rise in AMC stock is no longer about retail frenzies. Rather, it came after Governor Andrew Cuomo said movie theaters could reopen in New York on March 5. Of course, the reopening plan comes with some stipulations. Having said that, cinema can only operate at 25% capacity, while the number of guests will be limited to a maximum of 50 people per screen. According to Cuomo, assigned seating, social distancing, and other health precautions will be in place. Nevertheless, investors must have breathed a sigh of relief at the news. The ability to reopen its venues in a key market is certainly welcome news. You could almost say it is a reprieve for the struggling movie theater chain. Of course, that does not mean that the company is out of the woods yet. The question is, would you bet on AMC stock in anticipation of more venues reopening? The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Best Epicenter Stocks To Buy [Or Sell] Now American Airlines Group (NASDAQ: AAL) Royal Caribbean Group (NYSE: RCL) TripAdvisor Inc. (NASDAQ: TRIP) AMC Entertainment Holdings (NYSE: AMC) American Airlines Group First up, American Airlines seems ready for take-off after gaining nearly 10% while the broader market took a hit. What’s more, with the recent vaccine news from Israel, the road to recovery for AAL stock may be a smooth one. Originally coined by Fundstrat’s Tom Lee, “epicenter stocks” are companies that were hit hardest during the pandemic, but stand to benefit the most from an economic reopening.
Best Epicenter Stocks To Buy [Or Sell] Now American Airlines Group (NASDAQ: AAL) Royal Caribbean Group (NYSE: RCL) TripAdvisor Inc. (NASDAQ: TRIP) AMC Entertainment Holdings (NYSE: AMC) American Airlines Group First up, American Airlines seems ready for take-off after gaining nearly 10% while the broader market took a hit. What’s more, with the recent vaccine news from Israel, the road to recovery for AAL stock may be a smooth one. 4 Names To Watch Royal Caribbean Group Coming up next, Royal Caribbean Group is another epicenter stock bucking the trend when the market goes south.
Best Epicenter Stocks To Buy [Or Sell] Now American Airlines Group (NASDAQ: AAL) Royal Caribbean Group (NYSE: RCL) TripAdvisor Inc. (NASDAQ: TRIP) AMC Entertainment Holdings (NYSE: AMC) American Airlines Group First up, American Airlines seems ready for take-off after gaining nearly 10% while the broader market took a hit. What’s more, with the recent vaccine news from Israel, the road to recovery for AAL stock may be a smooth one. These 4 Epicenter Stocks Have Been Trending In The Market This Year What are epicenter stocks?
Best Epicenter Stocks To Buy [Or Sell] Now American Airlines Group (NASDAQ: AAL) Royal Caribbean Group (NYSE: RCL) TripAdvisor Inc. (NASDAQ: TRIP) AMC Entertainment Holdings (NYSE: AMC) American Airlines Group First up, American Airlines seems ready for take-off after gaining nearly 10% while the broader market took a hit. What’s more, with the recent vaccine news from Israel, the road to recovery for AAL stock may be a smooth one. These 4 Epicenter Stocks Have Been Trending In The Market This Year What are epicenter stocks?
4691.0
2021-02-23 00:00:00 UTC
Kumba Iron Ore pays out cash and invests in Sishen mine after strong profits
AAL
https://www.nasdaq.com/articles/kumba-iron-ore-pays-out-cash-and-invests-in-sishen-mine-after-strong-profits-2021-02-23
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By Tanisha Heiberg JOHANNESBURG, Feb 23 (Reuters) - South African miner Kumba Iron Ore KIOJ.J reported a 40% jump in annual profit on Tuesday and declared a strong dividend payout, driven by a surge in prices of the steel-making raw material and a weaker rand exchange rate during the year. Majority shareholder Anglo American Plc AAL.L will be a beneficiary of the strong dividend payout after Kumba reported headline earnings per share of 71.07 rand ($4.86) for the year ended December 2020, up from 50.88 rand a year earlier. Kumba, which runs the Sishen and Kolomela mines in South Africa, declared a final dividend of 41.30 rand per share, or 85% of headline earnings, bringing the full-year dividend to 60.90 rand, or 30% higher than its final dividend of 46.78 rand a year earlier. Iron ore prices soared in 2020, driven by China's rapid economic recovery and a focus on infrastructure. A weaker rand, which reduces costs, further boosted full-year earnings. EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) during the year jumped 57% to a record of 45.8 billion rand, the company said. Attributable free cash flow during the year rose 21% to 20.7 billion rand. However, 2020 output fell to 37.0 million tonnes from 42.4 million a year earlier, hit by coronavirus-related operational and logistical constraints and lower off-take from steel producer ArcelorMittal South Africa ACLJ.J. "Given that Kumba is in a net cash position, they could pay out almost all of their free cash flows as dividends, with majority shareholder Anglo American receiving almost $1 billion from Kumba," said Investment Analyst at Sanlam Private Wealth, Christiaan Bothma. Kumba said it planned to spend 3.6 billion rand to extend the life of its Sishen mine to 2039 through the ultra-high dense media separation project which was approved in February. The project at the Sishen mine in Northern Cape province is expected to begin in the second half of 2023. ($1=14.6171 rand) (Reporting by Tanisha Heiberg; Editing by Clarence Fernandez and Susan Fenton) ((Tanisha.Heiberg@thomsonreuters.com; +27117753034; Reuters Messaging: tanisha.heiberg.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.
Majority shareholder Anglo American Plc AAL.L will be a beneficiary of the strong dividend payout after Kumba reported headline earnings per share of 71.07 rand ($4.86) for the year ended December 2020, up from 50.88 rand a year earlier. By Tanisha Heiberg JOHANNESBURG, Feb 23 (Reuters) - South African miner Kumba Iron Ore KIOJ.J reported a 40% jump in annual profit on Tuesday and declared a strong dividend payout, driven by a surge in prices of the steel-making raw material and a weaker rand exchange rate during the year. EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) during the year jumped 57% to a record of 45.8 billion rand, the company said.
Majority shareholder Anglo American Plc AAL.L will be a beneficiary of the strong dividend payout after Kumba reported headline earnings per share of 71.07 rand ($4.86) for the year ended December 2020, up from 50.88 rand a year earlier. Kumba, which runs the Sishen and Kolomela mines in South Africa, declared a final dividend of 41.30 rand per share, or 85% of headline earnings, bringing the full-year dividend to 60.90 rand, or 30% higher than its final dividend of 46.78 rand a year earlier. "Given that Kumba is in a net cash position, they could pay out almost all of their free cash flows as dividends, with majority shareholder Anglo American receiving almost $1 billion from Kumba," said Investment Analyst at Sanlam Private Wealth, Christiaan Bothma.
Majority shareholder Anglo American Plc AAL.L will be a beneficiary of the strong dividend payout after Kumba reported headline earnings per share of 71.07 rand ($4.86) for the year ended December 2020, up from 50.88 rand a year earlier. By Tanisha Heiberg JOHANNESBURG, Feb 23 (Reuters) - South African miner Kumba Iron Ore KIOJ.J reported a 40% jump in annual profit on Tuesday and declared a strong dividend payout, driven by a surge in prices of the steel-making raw material and a weaker rand exchange rate during the year. Kumba, which runs the Sishen and Kolomela mines in South Africa, declared a final dividend of 41.30 rand per share, or 85% of headline earnings, bringing the full-year dividend to 60.90 rand, or 30% higher than its final dividend of 46.78 rand a year earlier.
Majority shareholder Anglo American Plc AAL.L will be a beneficiary of the strong dividend payout after Kumba reported headline earnings per share of 71.07 rand ($4.86) for the year ended December 2020, up from 50.88 rand a year earlier. By Tanisha Heiberg JOHANNESBURG, Feb 23 (Reuters) - South African miner Kumba Iron Ore KIOJ.J reported a 40% jump in annual profit on Tuesday and declared a strong dividend payout, driven by a surge in prices of the steel-making raw material and a weaker rand exchange rate during the year. Kumba, which runs the Sishen and Kolomela mines in South Africa, declared a final dividend of 41.30 rand per share, or 85% of headline earnings, bringing the full-year dividend to 60.90 rand, or 30% higher than its final dividend of 46.78 rand a year earlier.
4692.0
2021-02-22 00:00:00 UTC
Noteworthy Monday Option Activity: AAL, ORCL, GS
AAL
https://www.nasdaq.com/articles/noteworthy-monday-option-activity%3A-aal-orcl-gs-2021-02-22
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Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in American Airlines Group Inc (Symbol: AAL), where a total of 393,483 contracts have traded so far, representing approximately 39.3 million underlying shares. That amounts to about 61.1% of AAL's average daily trading volume over the past month of 64.4 million shares. Especially high volume was seen for the $20 strike call option expiring February 26, 2021, with 29,143 contracts trading so far today, representing approximately 2.9 million underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $20 strike highlighted in orange: Oracle Corp (Symbol: ORCL) saw options trading volume of 52,835 contracts, representing approximately 5.3 million underlying shares or approximately 58.2% of ORCL's average daily trading volume over the past month, of 9.1 million shares. Particularly high volume was seen for the $65 strike call option expiring February 26, 2021, with 4,221 contracts trading so far today, representing approximately 422,100 underlying shares of ORCL. Below is a chart showing ORCL's trailing twelve month trading history, with the $65 strike highlighted in orange: And Goldman Sachs Group Inc (the (Symbol: GS) options are showing a volume of 16,055 contracts thus far today. That number of contracts represents approximately 1.6 million underlying shares, working out to a sizeable 53.6% of GS's average daily trading volume over the past month, of 3.0 million shares. Particularly high volume was seen for the $320 strike call option expiring February 26, 2021, with 789 contracts trading so far today, representing approximately 78,900 underlying shares of GS. Below is a chart showing GS's trailing twelve month trading history, with the $320 strike highlighted in orange: For the various different available expirations for AAL options, ORCL options, or GS 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.
Especially high volume was seen for the $20 strike call option expiring February 26, 2021, with 29,143 contracts trading so far today, representing approximately 2.9 million underlying shares of AAL. Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in American Airlines Group Inc (Symbol: AAL), where a total of 393,483 contracts have traded so far, representing approximately 39.3 million underlying shares. That amounts to about 61.1% of AAL's average daily trading volume over the past month of 64.4 million shares.
Especially high volume was seen for the $20 strike call option expiring February 26, 2021, with 29,143 contracts trading so far today, representing approximately 2.9 million underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $20 strike highlighted in orange: Oracle Corp (Symbol: ORCL) saw options trading volume of 52,835 contracts, representing approximately 5.3 million underlying shares or approximately 58.2% of ORCL's average daily trading volume over the past month, of 9.1 million shares. Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in American Airlines Group Inc (Symbol: AAL), where a total of 393,483 contracts have traded so far, representing approximately 39.3 million underlying shares.
Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in American Airlines Group Inc (Symbol: AAL), where a total of 393,483 contracts have traded so far, representing approximately 39.3 million underlying shares. Especially high volume was seen for the $20 strike call option expiring February 26, 2021, with 29,143 contracts trading so far today, representing approximately 2.9 million underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $20 strike highlighted in orange: Oracle Corp (Symbol: ORCL) saw options trading volume of 52,835 contracts, representing approximately 5.3 million underlying shares or approximately 58.2% of ORCL's average daily trading volume over the past month, of 9.1 million shares.
Especially high volume was seen for the $20 strike call option expiring February 26, 2021, with 29,143 contracts trading so far today, representing approximately 2.9 million underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $20 strike highlighted in orange: Oracle Corp (Symbol: ORCL) saw options trading volume of 52,835 contracts, representing approximately 5.3 million underlying shares or approximately 58.2% of ORCL's average daily trading volume over the past month, of 9.1 million shares. Below is a chart showing GS's trailing twelve month trading history, with the $320 strike highlighted in orange: For the various different available expirations for AAL options, ORCL options, or GS options, visit StockOptionsChannel.com.
4693.0
2021-02-22 00:00:00 UTC
Why Airline Stocks Are Up Today
AAL
https://www.nasdaq.com/articles/why-airline-stocks-are-up-today-2021-02-22
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What happened Stocks were largely under pressure on Monday morning, but it was a good start to the week for the so-called reopening trade. A wide range of travel and entertainment stocks traded up on encouraging news concerning the rollout of a COVID-19 vaccine and growing hope things will be returning to normal soon. Airline stocks joined the rally, bolstered by a sectorwide upgrade by one Wall Street bank. American Airlines Group (NASDAQ: AAL) led the way higher, up 10% in late-morning trading, while shares of JetBlue Airways (NASDAQ: JBLU), Delta Air Lines (NYSE: DAL), United Airlines Holdings (NASDAQ: UAL), and Spirit Airlines (NYSE: SAVE) all traded up more than 5% apiece. So what Airline stocks were hit hard in 2020 as the pandemic swept across the globe and wiped out demand for travel. The only way to make a bull case for the industry is a vaccine, and a steady flow of good news concerning the effectiveness of the vaccines and the progress being made distributing the shots has shares of airlines, as well as other recovery trade stocks, on the upswing. Image source: Getty Images. Deutsche Bank analyst Michael Linenberg is a believer. The analyst on Monday upgraded eight airline stocks, including American, Delta, JetBlue, and Spirit, from hold to buy, saying that the sector is "back on track." The number of new COVID-19 cases, the number of hospitalizations, and the vaccination rates are all "trending in the right direction," he writes, which means it is time for investors to warm to the airlines. American and United were seen as among the most vulnerable major carriers heading into the crisis, and those stocks have been among the most beaten down. Delta and Spirit, meanwhile, are well positioned to take advantage of the early days of a recovery. JetBlue is a partner of American and could benefit if American leans on the new codeshare agreement while it attempts to get its balance sheet in order post-pandemic. Now what The worst is over, but the recovery will take time. The airlines added billions in additional debt during the crisis that will take time to work down. And some of the more lucrative parts of the business, international and business travel, will likely to take longer than leisure traffic to recover. It's interesting to note that while many of the stocks still trade below where they were prior to the pandemic, airline enterprise values -- a measure of a company's market capitalization plus its total debt -- are near where they were before the crisis. That implies the next leg up in an airline rally might not come until the companies are healthy enough to pay down that debt. For now, investors should continue to assume there will be a slow, steady recovery and should focus on best-of-breed airlines including Delta and Southwest Airlines (NYSE: LUV) as the best long-term investments. Spirit, with its industry-low cost structure and focus on leisure traffic, still looks like a good bet to be among the first to fully recover for those looking at a stock for the coming months. The fear and uncertainty that weighed on airline stocks in 2020 is starting to recede, but there is still potential for turbulence ahead. It's safe to board these stocks, but keep your seat belts fastened. 10 stocks we like better than Delta Air Lines When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Delta Air Lines wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of November 20, 2020 Lou Whiteman owns shares of Delta Air Lines and Spirit Airlines. The Motley Fool owns shares of 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.
American Airlines Group (NASDAQ: AAL) led the way higher, up 10% in late-morning trading, while shares of JetBlue Airways (NASDAQ: JBLU), Delta Air Lines (NYSE: DAL), United Airlines Holdings (NASDAQ: UAL), and Spirit Airlines (NYSE: SAVE) all traded up more than 5% apiece. A wide range of travel and entertainment stocks traded up on encouraging news concerning the rollout of a COVID-19 vaccine and growing hope things will be returning to normal soon. The analyst on Monday upgraded eight airline stocks, including American, Delta, JetBlue, and Spirit, from hold to buy, saying that the sector is "back on track."
American Airlines Group (NASDAQ: AAL) led the way higher, up 10% in late-morning trading, while shares of JetBlue Airways (NASDAQ: JBLU), Delta Air Lines (NYSE: DAL), United Airlines Holdings (NASDAQ: UAL), and Spirit Airlines (NYSE: SAVE) all traded up more than 5% apiece. The analyst on Monday upgraded eight airline stocks, including American, Delta, JetBlue, and Spirit, from hold to buy, saying that the sector is "back on track." The Motley Fool recommends Delta Air Lines, JetBlue Airways, and Southwest Airlines.
American Airlines Group (NASDAQ: AAL) led the way higher, up 10% in late-morning trading, while shares of JetBlue Airways (NASDAQ: JBLU), Delta Air Lines (NYSE: DAL), United Airlines Holdings (NASDAQ: UAL), and Spirit Airlines (NYSE: SAVE) all traded up more than 5% apiece. The analyst on Monday upgraded eight airline stocks, including American, Delta, JetBlue, and Spirit, from hold to buy, saying that the sector is "back on track." See the 10 stocks *Stock Advisor returns as of November 20, 2020 Lou Whiteman owns shares of Delta Air Lines and Spirit Airlines.
American Airlines Group (NASDAQ: AAL) led the way higher, up 10% in late-morning trading, while shares of JetBlue Airways (NASDAQ: JBLU), Delta Air Lines (NYSE: DAL), United Airlines Holdings (NASDAQ: UAL), and Spirit Airlines (NYSE: SAVE) all traded up more than 5% apiece. The analyst on Monday upgraded eight airline stocks, including American, Delta, JetBlue, and Spirit, from hold to buy, saying that the sector is "back on track." The Motley Fool recommends Delta Air Lines, JetBlue Airways, and Southwest Airlines.
4694.0
2021-02-22 00:00:00 UTC
Stock Markets Are Falling, but These 3 Once-Crushed Stocks Are at 52-Week Highs
AAL
https://www.nasdaq.com/articles/stock-markets-are-falling-but-these-3-once-crushed-stocks-are-at-52-week-highs-2021-02-22
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The stock market opened the new week on a down note on Monday, although some portions of the market managed to avoid the full brunt of declines and clawed their way back over the course of the morning. Investors seem a bit nervous about volatility in the market overall, along with rising interest rates and oil prices that could accompany a full-on economic recovery. As of just before noon EST, the Dow Jones Industrial Average (DJINDICES: ^DJI) had managed to claw itself into positive territory, rising 25 points to 31,519. However, the S&P 500 (SNPINDEX: ^GSPC) fell 19 points to 3,887, and the Nasdaq Composite (NASDAQINDEX: ^IXIC) moved sharply lower by 215 points to 13,659. Even as red-hot tech stocks led the Nasdaq lower, some sectors of the market did quite well. Indeed, in the once beaten-down airline stock sector, three stocks managed to set new 52-week highs, marking a full recovery from the ravages of the COVID-19 pandemic on their industry. Image source: Getty Images. Flying higher Shares of airlines were up broadly across the board on Monday morning. Among them, the following three stocks managed to set new highs over the past year: Southwest Airlines (NYSE: LUV) was higher by more than 4%, marking a gain of greater than 20% just since the beginning of the year. Hawaiian Holdings (NASDAQ: HA) picked up almost 6% on Monday morning, bringing its year-to-date gains to more than 50%. Finally, Alaska Air Group (NYSE: ALK) climbed 4%. The airline stock is up by greater than 30% so far in 2021. What all three of these airlines have in common is that they're primarily focused on the domestic U.S. market. Southwest offers limited service to Latin America and the Caribbean, while Hawaiian connects countries around the Pacific Rim to Honolulu, and Alaska flies to Canada, Mexico, and Costa Rica. However, their U.S. routes are much more extensive and important for their overall revenue. With coronavirus vaccines getting distributed more widely, investors are growing more optimistic at the prospects of air travel returning to normal. Indeed, many believe that travel could actually surge once it's completely safe to do so because pent-up demand has kept people at home longer than they wanted. It's possible that airlines could make back some of their losses due to full planes once the all-clear sounds. Are the big carriers next? That news should be good for major carriers Delta Air Lines (NYSE: DAL), American Airlines Group (NASDAQ: AAL), and United Airlines Holdings (NASDAQ: UAL) in the long run. However, they have more extensive international route maps, and it's likely to take a lot longer for global travel to open up than it will for domestic travel inside the U.S. market. Those airlines have jumped back considerably from their past pain, but they still have some work to do to reach 52-week highs. Delta is about 16% below where it traded this time last year, while American is down 25% and United is off 34%. In the minds of many investors, though, that just gives Delta, American, and United more room to rise in the long run if conditions return to normal. Airlines have struggled, and it'll take a considerable amount of time for the industry to get back to any semblance of normalcy, even if the pandemic gets under control soon. Investors, though, are anticipating the best, and that could keep sending airline stocks sharply higher in the future. 10 stocks we like better than Southwest Airlines When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Southwest Airlines wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of November 20, 2020 Dan Caplinger has no position in any of the stocks mentioned. The Motley Fool recommends Alaska Air Group, Delta Air Lines, Hawaiian Holdings, 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.
That news should be good for major carriers Delta Air Lines (NYSE: DAL), American Airlines Group (NASDAQ: AAL), and United Airlines Holdings (NASDAQ: UAL) in the long run. Investors seem a bit nervous about volatility in the market overall, along with rising interest rates and oil prices that could accompany a full-on economic recovery. As of just before noon EST, the Dow Jones Industrial Average (DJINDICES: ^DJI) had managed to claw itself into positive territory, rising 25 points to 31,519.
That news should be good for major carriers Delta Air Lines (NYSE: DAL), American Airlines Group (NASDAQ: AAL), and United Airlines Holdings (NASDAQ: UAL) in the long run. Indeed, in the once beaten-down airline stock sector, three stocks managed to set new 52-week highs, marking a full recovery from the ravages of the COVID-19 pandemic on their industry. The Motley Fool recommends Alaska Air Group, Delta Air Lines, Hawaiian Holdings, and Southwest Airlines.
That news should be good for major carriers Delta Air Lines (NYSE: DAL), American Airlines Group (NASDAQ: AAL), and United Airlines Holdings (NASDAQ: UAL) in the long run. Indeed, in the once beaten-down airline stock sector, three stocks managed to set new 52-week highs, marking a full recovery from the ravages of the COVID-19 pandemic on their industry. Among them, the following three stocks managed to set new highs over the past year: Southwest Airlines (NYSE: LUV) was higher by more than 4%, marking a gain of greater than 20% just since the beginning of the year.
That news should be good for major carriers Delta Air Lines (NYSE: DAL), American Airlines Group (NASDAQ: AAL), and United Airlines Holdings (NASDAQ: UAL) in the long run. However, they have more extensive international route maps, and it's likely to take a lot longer for global travel to open up than it will for domestic travel inside the U.S. market. The Motley Fool recommends Alaska Air Group, Delta Air Lines, Hawaiian Holdings, and Southwest Airlines.
4695.0
2021-02-22 00:00:00 UTC
S&P 500 Movers: VTRS, PBCT
AAL
https://www.nasdaq.com/articles/sp-500-movers%3A-vtrs-pbct-2021-02-22
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In early trading on Monday, shares of People's United Financial topped the list of the day's best performing components of the S&P 500 index, trading up 12.6%. Year to date, People's United Financial registers a 36.5% gain. And the worst performing S&P 500 component thus far on the day is Viatris, trading down 11.2%. Viatris is lower by about 13.7% looking at the year to date performance. Two other components making moves today are Enphase Energy, trading down 6.7%, and American Airlines Group, trading up 9.1% on the day. VIDEO: S&P 500 Movers: VTRS, PBCT The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
In early trading on Monday, shares of People's United Financial topped the list of the day's best performing components of the S&P 500 index, trading up 12.6%. Year to date, People's United Financial registers a 36.5% gain. And the worst performing S&P 500 component thus far on the day is Viatris, trading down 11.2%.
In early trading on Monday, shares of People's United Financial topped the list of the day's best performing components of the S&P 500 index, trading up 12.6%. Year to date, People's United Financial registers a 36.5% gain. And the worst performing S&P 500 component thus far on the day is Viatris, trading down 11.2%.
In early trading on Monday, shares of People's United Financial topped the list of the day's best performing components of the S&P 500 index, trading up 12.6%. Two other components making moves today are Enphase Energy, trading down 6.7%, and American Airlines Group, trading up 9.1% on the day. VIDEO: S&P 500 Movers: VTRS, PBCT The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Year to date, People's United Financial registers a 36.5% gain. And the worst performing S&P 500 component thus far on the day is Viatris, trading down 11.2%. VIDEO: S&P 500 Movers: VTRS, PBCT The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
4696.0
2021-02-22 00:00:00 UTC
Pre-Market Most Active for Feb 22, 2021 : PLTR, PBR, XELB, CCIV, AAL, SOS, SQQQ, CAN, AMC, SAN, QQQ, OTIC
AAL
https://www.nasdaq.com/articles/pre-market-most-active-for-feb-22-2021-%3A-pltr-pbr-xelb-cciv-aal-sos-sqqq-can-amc-san-qqq
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The NASDAQ 100 Pre-Market Indicator is down -162.81 to 13,417.97. The total Pre-Market volume is currently 40,360,256 shares traded. The following are the most active stocks for the pre-market session: Palantir Technologies Inc. (PLTR) is +0.88 at $29.88, with 10,781,117 shares traded. PLTR's current last sale is 199.2% of the target price of $15. Petroleo Brasileiro S.A.- Petrobras (PBR) is -1.9301 at $8.12, with 5,582,223 shares traded. As reported by Zacks, the current mean recommendation for PBR is in the "buy range". Xcel Brands, Inc (XELB) is +1.085 at $3.10, with 5,078,450 shares traded. Churchill Capital Corp IV (CCIV) is +7.98 at $60.92, with 4,020,786 shares traded. American Airlines Group, Inc. (AAL) is +1.09 at $19.77, with 2,594,534 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 $-0.5. AAL's current last sale is 152.08% of the target price of $13. SOS Limited (SOS) is -0.74 at $10.53, with 2,461,458 shares traded. ProShares UltraPro Short QQQ (SQQQ) is +0.53 at $13.07, with 2,324,828 shares traded. This represents a 11.14% increase from its 52 Week Low. Canaan Inc. (CAN) is -2.2 at $22.59, with 1,684,034 shares traded., following a 52-week high recorded in prior regular session. AMC Entertainment Holdings, Inc. (AMC) is +0.0899 at $5.79, with 1,271,500 shares traded.AMC is scheduled to provide an earnings report on 2/25/2021, for the fiscal quarter ending Dec2020. The consensus earnings per share forecast is -3.39 per share, which represents a 35 percent increase over the EPS one Year Ago Banco Santander, S.A. (SAN) is -0.16 at $3.48, with 1,252,970 shares traded. SAN's current last sale is 165.71% of the target price of $2.1. Invesco QQQ Trust, Series 1 (QQQ) is -4.61 at $326.41, with 1,178,236 shares traded. This represents a 97.91% increase from its 52 Week Low. Otonomy, Inc. (OTIC) is -2.69 at $2.70, with 1,142,943 shares traded. As reported by Zacks, the current mean recommendation for OTIC is in the "strong 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.
American Airlines Group, Inc. (AAL) is +1.09 at $19.77, with 2,594,534 shares traded. AAL's current last sale is 152.08% of the target price of $13. As reported by Zacks, the current mean recommendation for PBR is in the "buy range".
American Airlines Group, Inc. (AAL) is +1.09 at $19.77, with 2,594,534 shares traded. AAL's current last sale is 152.08% of the target price of $13. As reported by Zacks, the current mean recommendation for PBR is in the "buy range".
American Airlines Group, Inc. (AAL) is +1.09 at $19.77, with 2,594,534 shares traded. AAL's current last sale is 152.08% of the target price of $13. The total Pre-Market volume is currently 40,360,256 shares traded.
American Airlines Group, Inc. (AAL) is +1.09 at $19.77, with 2,594,534 shares traded. AAL's current last sale is 152.08% of the target price of $13. The NASDAQ 100 Pre-Market Indicator is down -162.81 to 13,417.97.
4697.0
2021-02-19 00:00:00 UTC
Omimex-owned fertilizer firm buys Brazil factory
AAL
https://www.nasdaq.com/articles/omimex-owned-fertilizer-firm-buys-brazil-factory-2021-02-19
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By Ana Mano SAO PAULO, Feb 19 (Reuters) - Cibra, a fertilizer company majority owned by U.S.-based Omimex Resources Inc, has expanded its capacity in Brazil by buying a plant from Fertilizantes Heringer SA FHER3.SA for 55 million reais ($10.25 million), the companies said in statements on Friday. Cibra said it bought the plant in the southeastern state of Minas Gerais with production capacity of 400,000 tonnes per year. The deal will increase its Brazilian production capacity by 24%. The purchase is part of Cibra's 400 million reais expansion plan that aims to reach local production capacity of 2.5 million tonnes by 2025. The purchase is subject to regulatory approvals. Cibra, which is minority owned by Anglo American AAL.L, now owns 11 plants in Brazil -- the world's largest producer of foodstuffs like soybeans, coffee and orange juice. In addition to the plant acquired in Minas Gerais, Cibra plans to build a new one this year and also buy at least one more production facility, Cibra said. Cibra, one of the five largest fertilizer companies in Brazil, sold 1.7 million tonnes worth of products in the country last year, a 15% rise. It beat its own sales growth forecast of 6% for 2020, the company said. ($1 = 5.3678 reais) (Reporting by Ana Mano, Editing by Nick Zieminski) ((ana.mano@thomsonreuters.com; Tel: +55-11-5644-7704; Mob: +55-119-4470-4529; Reuters Messaging: ana.mano.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.
Cibra, which is minority owned by Anglo American AAL.L, now owns 11 plants in Brazil -- the world's largest producer of foodstuffs like soybeans, coffee and orange juice. By Ana Mano SAO PAULO, Feb 19 (Reuters) - Cibra, a fertilizer company majority owned by U.S.-based Omimex Resources Inc, has expanded its capacity in Brazil by buying a plant from Fertilizantes Heringer SA FHER3.SA for 55 million reais ($10.25 million), the companies said in statements on Friday. Cibra said it bought the plant in the southeastern state of Minas Gerais with production capacity of 400,000 tonnes per year.
Cibra, which is minority owned by Anglo American AAL.L, now owns 11 plants in Brazil -- the world's largest producer of foodstuffs like soybeans, coffee and orange juice. By Ana Mano SAO PAULO, Feb 19 (Reuters) - Cibra, a fertilizer company majority owned by U.S.-based Omimex Resources Inc, has expanded its capacity in Brazil by buying a plant from Fertilizantes Heringer SA FHER3.SA for 55 million reais ($10.25 million), the companies said in statements on Friday. Cibra said it bought the plant in the southeastern state of Minas Gerais with production capacity of 400,000 tonnes per year.
Cibra, which is minority owned by Anglo American AAL.L, now owns 11 plants in Brazil -- the world's largest producer of foodstuffs like soybeans, coffee and orange juice. By Ana Mano SAO PAULO, Feb 19 (Reuters) - Cibra, a fertilizer company majority owned by U.S.-based Omimex Resources Inc, has expanded its capacity in Brazil by buying a plant from Fertilizantes Heringer SA FHER3.SA for 55 million reais ($10.25 million), the companies said in statements on Friday. The purchase is part of Cibra's 400 million reais expansion plan that aims to reach local production capacity of 2.5 million tonnes by 2025.
Cibra, which is minority owned by Anglo American AAL.L, now owns 11 plants in Brazil -- the world's largest producer of foodstuffs like soybeans, coffee and orange juice. By Ana Mano SAO PAULO, Feb 19 (Reuters) - Cibra, a fertilizer company majority owned by U.S.-based Omimex Resources Inc, has expanded its capacity in Brazil by buying a plant from Fertilizantes Heringer SA FHER3.SA for 55 million reais ($10.25 million), the companies said in statements on Friday. Cibra said it bought the plant in the southeastern state of Minas Gerais with production capacity of 400,000 tonnes per year.
4698.0
2021-02-19 00:00:00 UTC
Major U.S. airlines will voluntarily collect international contract tracing info
AAL
https://www.nasdaq.com/articles/major-u.s.-airlines-will-voluntarily-collect-international-contract-tracing-info-2021-02
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By David Shepardson WASHINGTON, Feb 19 (Reuters) - Major U.S. airlines on Friday said they would adopt a voluntary international contact tracing program, months after the White House under then-President Donald Trump blocked a mandatory effort. American Airlines AAL.O, Delta Air Lines DAL.N, Southwest Airlines LUV.N, United Airlines UAL.O and other major airlines said they had committed to collecting contact tracing data from passengers traveling into the United States and to relaying that data to the Centers for Disease Control and Prevention (CDC) if travelers provide information. In August, Trump officials rejected an effort to require airlines to collect contact tracing information from U.S.-bound international passengers after some senior administration officials cited privacy concerns, Reuters reported. Major airlines and administration officials had held talks for months over a long-standing CDC effort to mandate the collection and reporting of tracing information from international passengers. In February 2020, the CDC issued an interim final rule to require airlines to collect five contact data elements from international passengers, including phone numbers, and electronically submit them to Customs and Border Protection to facilitate contact tracing. But the rule was never enforced. Airlines protested, arguing they could not provide such information, especially from passengers booking tickets through third-party websites. Airlines backed setting up a website and a mobile application for passengers to send contact information directly to the CDC. Nick Calio, who heads airline trade association Airlines for America, said airlines were hopeful the voluntary effort and COVID-19 international passenger testing requirements adopted last month by the CDC "will lead policymakers to lift travel restrictions." President Joe Biden in January reimposed an entry ban on nearly all non-U.S. travelers who have recently been in Brazil, the United Kingdom, Ireland and 26 countries in Europe that allow travel across open borders that Trump had sought to end - and quickly added South Africa to the list. There is no immediate indication the CDC will move quickly to drop those restrictions, some of which have been in place for almost a year. (Reporting by David Shepardson; editing by Jonathan Oatis) ((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.
American Airlines AAL.O, Delta Air Lines DAL.N, Southwest Airlines LUV.N, United Airlines UAL.O and other major airlines said they had committed to collecting contact tracing data from passengers traveling into the United States and to relaying that data to the Centers for Disease Control and Prevention (CDC) if travelers provide information. By David Shepardson WASHINGTON, Feb 19 (Reuters) - Major U.S. airlines on Friday said they would adopt a voluntary international contact tracing program, months after the White House under then-President Donald Trump blocked a mandatory effort. Major airlines and administration officials had held talks for months over a long-standing CDC effort to mandate the collection and reporting of tracing information from international passengers.
American Airlines AAL.O, Delta Air Lines DAL.N, Southwest Airlines LUV.N, United Airlines UAL.O and other major airlines said they had committed to collecting contact tracing data from passengers traveling into the United States and to relaying that data to the Centers for Disease Control and Prevention (CDC) if travelers provide information. In August, Trump officials rejected an effort to require airlines to collect contact tracing information from U.S.-bound international passengers after some senior administration officials cited privacy concerns, Reuters reported. In February 2020, the CDC issued an interim final rule to require airlines to collect five contact data elements from international passengers, including phone numbers, and electronically submit them to Customs and Border Protection to facilitate contact tracing.
American Airlines AAL.O, Delta Air Lines DAL.N, Southwest Airlines LUV.N, United Airlines UAL.O and other major airlines said they had committed to collecting contact tracing data from passengers traveling into the United States and to relaying that data to the Centers for Disease Control and Prevention (CDC) if travelers provide information. In February 2020, the CDC issued an interim final rule to require airlines to collect five contact data elements from international passengers, including phone numbers, and electronically submit them to Customs and Border Protection to facilitate contact tracing. Nick Calio, who heads airline trade association Airlines for America, said airlines were hopeful the voluntary effort and COVID-19 international passenger testing requirements adopted last month by the CDC "will lead policymakers to lift travel restrictions."
American Airlines AAL.O, Delta Air Lines DAL.N, Southwest Airlines LUV.N, United Airlines UAL.O and other major airlines said they had committed to collecting contact tracing data from passengers traveling into the United States and to relaying that data to the Centers for Disease Control and Prevention (CDC) if travelers provide information. By David Shepardson WASHINGTON, Feb 19 (Reuters) - Major U.S. airlines on Friday said they would adopt a voluntary international contact tracing program, months after the White House under then-President Donald Trump blocked a mandatory effort. In February 2020, the CDC issued an interim final rule to require airlines to collect five contact data elements from international passengers, including phone numbers, and electronically submit them to Customs and Border Protection to facilitate contact tracing.
4699.0
2021-02-19 00:00:00 UTC
Airlines, renewables companies push Biden to make air travel greener
AAL
https://www.nasdaq.com/articles/airlines-renewables-companies-push-biden-to-make-air-travel-greener-2021-02-19
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By Stephanie Kelly NEW YORK, Feb 19 (Reuters) - U.S airlines and renewables companies are lobbying the Biden administration to back a big increase in subsidies for lower-carbon aviation fuel, arguing new incentives are needed to help fight climate change and will also make their recovery from the pandemic much greener, industry trade groups told Reuters. The push reflects the hefty price that U.S. taxpayers may be asked to pay as President Joe Biden seeks to follow through on his plan to both decarbonize the U.S. economy by 2050 and to help battered industries recover from the economic meltdown. Air travel contributes around 2% of global greenhouse gas emissions, the Air Transport Action Group said. It is projected to grow rapidly in coming decades if airlines do not quickly switch to "sustainable aviation fuel." This is made from biologically-sourced wastes like old cooking oil, animal fat and plant oils and is a much more expensive product than traditional jet fuel. The sustainable aviation fuel industry senses a political opening with the Biden administration after four years during which former President Donald Trump downplayed the threats from global warming and backed regulations that maximized fossil fuels development. "The difference is we've got an ear now that's much more sympathetic to figuring out near-term solutions to policy, research and development," said Bryan Sherbacow, chief commercial officer for low-carbon fuels provider World Energy. The National Air Transportation Association, which represents more than 3,000 companies across the aviation industry, said it was due to meet with the Federal Aviation Administration this month to sell an incentive for sustainable aviation fuel of up to $2 a gallon, which industry analysts estimate would be one of the priciest fuel incentives in the country. With a Democratic majority in the House of Representative and an evenly split Senate, White House support for legislation on incentives is pivotal. The FAA said in a statement to Reuters that it could not verify information about specific meetings, though it said it was a "strong proponent" of sustainable aviation fuels. NATA said it is also trying to meet with the Department of Transportation. Airlines for America (A4A), which represents U.S. airline companies, including United UAL.O, American Airlines AAL.O and Southwest LUV.N, said it has also been in contact with the Biden administration's climate change officials to discuss expanding the sustainable aviation fuel market. Currently, A4A members use only about 1.5 million gallons of green plane fuel in the United States a year, out of a total commercial jet fuel market that exceeds 620 million barrels annually, based on data from A4A and the Energy Information Administration. The price of sustainable aviation fuel can be three or four times higher than traditional jet fuel, making it uneconomical without government support, said Nancy Young, A4A's vice president of environmental affairs. Currently, sustainable aviation fuel producers are eligible for a $1 per gallon subsidy under an existing federal biodiesel tax credit. The fuel is also eligible for incentives under the U.S. Renewable Fuel Standard and California's Low Carbon Fuel Standard, which both encourage clean fuel production by generating tradable credits. U.S. Representative Julia Brownley, a Democrat from California, introduced new legislation in early February that would boost those incentives by authorizing $1 billion in federal funding and by creating a blender's tax credit specific to sustainable aviation fuel. Analysts said a well-thought out incentive structure - even if expensive - could help to decarbonize an industry that will have to rely on some form of liquid fuels for decades. "Aviation is likely to be a source of carbon emissions for a very long time," said Robert Campbell, head of oil products research at Energy Aspects. "The decarbonization options for aviation are challenging, to say the least." COMPANIES PLACE BETS Several other countries have already proposed sustainable aviation fuel mandates or are exploring them as a means of addressing increasing carbon output from air travel. A mandate in Norway came into force in January 2020, while the Netherlands is set to have one in place by 2023. Globally, more than 250,000 flights have run on sustainable aviation fuel since 2016, while an estimated 10.6 million gallons were produced in 2020, the International Air Transport Association said. Several companies are betting on future growth. Chicago-based Boeing BA.N, a leading manufacturer of commercial jetliners, for example, has committed to fly with 100% sustainable aviation fuels by 2030, it said in January. Meanwhile, Neste NESTE.HE, a Finnish oil refiner and renewable fuels producer, said it plans to expand its sustainable aviation fuel global production capability by early 2023 to 510 million gallons per year from 34 million gallons currently. While several U.S. petroleum refiners have made capital investments in retrofitting their plants to produce renewable diesel, they are agnostic about legislation regarding tax credits for sustainable aviation fuel, several U.S. refining industry sources told Reuters. So far, only Phillips 66 PSX.N has announced its intent to produce the fuel at its planned renewable fuels facility in Rodeo, California. Valero, VLO.N meanwhile, has said it could produce sustainable aviation fuel in the future "when we need to pivot there." (Reporting by Stephanie Kelly; additional reporting by Laura Sanicola. Editing by Jane Merriman) ((Stephanie.Kelly@thomsonreuters.com; 646-223-4471; Reuters Messaging: stephanie.kelly.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.
Airlines for America (A4A), which represents U.S. airline companies, including United UAL.O, American Airlines AAL.O and Southwest LUV.N, said it has also been in contact with the Biden administration's climate change officials to discuss expanding the sustainable aviation fuel market. The push reflects the hefty price that U.S. taxpayers may be asked to pay as President Joe Biden seeks to follow through on his plan to both decarbonize the U.S. economy by 2050 and to help battered industries recover from the economic meltdown. "The difference is we've got an ear now that's much more sympathetic to figuring out near-term solutions to policy, research and development," said Bryan Sherbacow, chief commercial officer for low-carbon fuels provider World Energy.
Airlines for America (A4A), which represents U.S. airline companies, including United UAL.O, American Airlines AAL.O and Southwest LUV.N, said it has also been in contact with the Biden administration's climate change officials to discuss expanding the sustainable aviation fuel market. By Stephanie Kelly NEW YORK, Feb 19 (Reuters) - U.S airlines and renewables companies are lobbying the Biden administration to back a big increase in subsidies for lower-carbon aviation fuel, arguing new incentives are needed to help fight climate change and will also make their recovery from the pandemic much greener, industry trade groups told Reuters. Meanwhile, Neste NESTE.HE, a Finnish oil refiner and renewable fuels producer, said it plans to expand its sustainable aviation fuel global production capability by early 2023 to 510 million gallons per year from 34 million gallons currently.
Airlines for America (A4A), which represents U.S. airline companies, including United UAL.O, American Airlines AAL.O and Southwest LUV.N, said it has also been in contact with the Biden administration's climate change officials to discuss expanding the sustainable aviation fuel market. The National Air Transportation Association, which represents more than 3,000 companies across the aviation industry, said it was due to meet with the Federal Aviation Administration this month to sell an incentive for sustainable aviation fuel of up to $2 a gallon, which industry analysts estimate would be one of the priciest fuel incentives in the country. The fuel is also eligible for incentives under the U.S. Renewable Fuel Standard and California's Low Carbon Fuel Standard, which both encourage clean fuel production by generating tradable credits.
Airlines for America (A4A), which represents U.S. airline companies, including United UAL.O, American Airlines AAL.O and Southwest LUV.N, said it has also been in contact with the Biden administration's climate change officials to discuss expanding the sustainable aviation fuel market. This is made from biologically-sourced wastes like old cooking oil, animal fat and plant oils and is a much more expensive product than traditional jet fuel. The National Air Transportation Association, which represents more than 3,000 companies across the aviation industry, said it was due to meet with the Federal Aviation Administration this month to sell an incentive for sustainable aviation fuel of up to $2 a gallon, which industry analysts estimate would be one of the priciest fuel incentives in the country.