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5300.0
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2020-09-11 00:00:00 UTC
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U.S. proposes to waive minimum flight requirements for airlines until March 2021
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AAL
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https://www.nasdaq.com/articles/u.s.-proposes-to-waive-minimum-flight-requirements-for-airlines-until-march-2021-2020-09-0
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By David Shepardson
WASHINGTON, Sept 11 (Reuters) - The Federal Aviation Administration said on Friday it favors the extension of temporary waivers of minimum flight requirements at some U.S. airports through late March 2021 due to the coronavirus pandemic.
Airlines can lose their slots at congested airports if they do not use them at least 80% of the time. The FAA said it proposed extending temporary waivers of the requirements at New York's JFK and LaGuardia airports and Ronald Reagan Washington National Airport that were set to expire in October.
At four other U.S. airports where the FAA has a formal schedule-review process - Chicago O’Hare, Newark, Los Angeles and San Francisco - the agency proposes to extend credits to airlines for flights that were canceled due to the coronavirus as though those flights were operated.
The FAA said it planned to impose some conditions on the waivers and that slots that are not operated for extended periods should be made available to other airlines on a temporary basis.
American Airlines Inc AAL.O, Delta Air Lines DAL.N, Inc JetBlue Airways Corp JBLU.O and United Airlines UAL.O last week urged the administration to extend relief.
Major airline groups cited "historically low levels of bookings, with overall bookings down 82% year-on-year for 2020 compared to the outlook for 2019; consumer demand that continues to fall... and the need for schedule flexibility to support sustainable loads," the FAA said.
Spirit Airlines SAVE.N opposed extension of the waivers, arguing that "public policy should be directed toward enabling the free market to reallocate the use of these slots/authorizations – a public resource – such that passengers receive greater choice among offerings in these key markets.”
The FAA said its proposal "reflects a delicate balancing of the competing interests of carriers interested in conducting ad hoc operations... against the interests of incumbent carriers seeking maximum flexibility in making scheduling and
operational decisions in an uncertain environment with ongoing COVID-19-related impacts."
Delta told the FAA it projected operating 50%-60% of its slot portfolio in New York and Washington airports in November.
(Reporting by David Shepardson; Editing by Chizu Nomiyama and Dan Grebler)
((David.Shepardson@thomsonreuters.com; 2028988324;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines Inc AAL.O, Delta Air Lines DAL.N, Inc JetBlue Airways Corp JBLU.O and United Airlines UAL.O last week urged the administration to extend relief. By David Shepardson WASHINGTON, Sept 11 (Reuters) - The Federal Aviation Administration said on Friday it favors the extension of temporary waivers of minimum flight requirements at some U.S. airports through late March 2021 due to the coronavirus pandemic. The FAA said it planned to impose some conditions on the waivers and that slots that are not operated for extended periods should be made available to other airlines on a temporary basis.
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American Airlines Inc AAL.O, Delta Air Lines DAL.N, Inc JetBlue Airways Corp JBLU.O and United Airlines UAL.O last week urged the administration to extend relief. By David Shepardson WASHINGTON, Sept 11 (Reuters) - The Federal Aviation Administration said on Friday it favors the extension of temporary waivers of minimum flight requirements at some U.S. airports through late March 2021 due to the coronavirus pandemic. The FAA said it proposed extending temporary waivers of the requirements at New York's JFK and LaGuardia airports and Ronald Reagan Washington National Airport that were set to expire in October.
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American Airlines Inc AAL.O, Delta Air Lines DAL.N, Inc JetBlue Airways Corp JBLU.O and United Airlines UAL.O last week urged the administration to extend relief. The FAA said it proposed extending temporary waivers of the requirements at New York's JFK and LaGuardia airports and Ronald Reagan Washington National Airport that were set to expire in October. At four other U.S. airports where the FAA has a formal schedule-review process - Chicago O’Hare, Newark, Los Angeles and San Francisco - the agency proposes to extend credits to airlines for flights that were canceled due to the coronavirus as though those flights were operated.
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American Airlines Inc AAL.O, Delta Air Lines DAL.N, Inc JetBlue Airways Corp JBLU.O and United Airlines UAL.O last week urged the administration to extend relief. By David Shepardson WASHINGTON, Sept 11 (Reuters) - The Federal Aviation Administration said on Friday it favors the extension of temporary waivers of minimum flight requirements at some U.S. airports through late March 2021 due to the coronavirus pandemic. Airlines can lose their slots at congested airports if they do not use them at least 80% of the time.
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5301.0
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2020-09-11 00:00:00 UTC
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Citigroup and Wayfair Are Partnering on 2 New Credit Cards
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AAL
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https://www.nasdaq.com/articles/citigroup-and-wayfair-are-partnering-on-2-new-credit-cards-2020-09-11
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A day after announcing the upcoming retirement of its CEO and that it would appoint the first female CEO of a megabank, Citigroup (NYSE: C) scored a major victory for its credit card business, according to a CNBC report.
Wayfair (NYSE: W) had been seeking a credit card co-branding partner, and Citigroup has won the rights to offer two new credit card products that bear the rapidly growing furniture retailer's name. Citi reportedly beat Alliance Data Systems (NYSE: ADS) for the partnership.
Image source: Getty Images.
Two new credit cards
Like many credit card partnerships, the Citigroup-issued cards will come in two varieties initially. There will be a store credit card that will only be accepted for Wayfair purchases, and there will also be a Mastercard version, which can be used anywhere that type of credit card is accepted.
Both cards will have a 5% rewards rate on Wayfair purchases. The Mastercard version will also earn 3% back on grocery purchases, 2% on online purchases, and 1% on all other purchases.
Also like many other retailer co-branded credit cards, there will be a promotional financing deal available. Both cards will offer no-interest financing for up to 24 months on qualifying Wayfair purchases, as well as preferential rates for longer terms. Specifically, the cards will come with a variable APR of 26.99%, but financing for up to 60 months at a 9.99% APR will be available for major purchases.
Why it matters
This is a big win for Citigroup, which also offers credit cards in partnership with American Airlines (NASDAQ: AAL) and Costco (NASDAQ: COST), just to name a few. Wayfair generated $4.3 billion in sales during the second quarter, representing year-over-year growth of 84%. As of June 30, the company's direct retail business had 26 million active customers. To put it mildly, this is a large group of consumers Citigroup could bring into its lending business.
10 stocks we like better than Citigroup
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*Stock Advisor returns as of August 1, 2020
Matthew Frankel, CFP has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Wayfair. The Motley Fool recommends Costco Wholesale. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Why it matters This is a big win for Citigroup, which also offers credit cards in partnership with American Airlines (NASDAQ: AAL) and Costco (NASDAQ: COST), just to name a few. Citi reportedly beat Alliance Data Systems (NYSE: ADS) for the partnership. Both cards will offer no-interest financing for up to 24 months on qualifying Wayfair purchases, as well as preferential rates for longer terms.
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Why it matters This is a big win for Citigroup, which also offers credit cards in partnership with American Airlines (NASDAQ: AAL) and Costco (NASDAQ: COST), just to name a few. Also like many other retailer co-branded credit cards, there will be a promotional financing deal available. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.
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Why it matters This is a big win for Citigroup, which also offers credit cards in partnership with American Airlines (NASDAQ: AAL) and Costco (NASDAQ: COST), just to name a few. Wayfair (NYSE: W) had been seeking a credit card co-branding partner, and Citigroup has won the rights to offer two new credit card products that bear the rapidly growing furniture retailer's name. Two new credit cards Like many credit card partnerships, the Citigroup-issued cards will come in two varieties initially.
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Why it matters This is a big win for Citigroup, which also offers credit cards in partnership with American Airlines (NASDAQ: AAL) and Costco (NASDAQ: COST), just to name a few. Wayfair (NYSE: W) had been seeking a credit card co-branding partner, and Citigroup has won the rights to offer two new credit card products that bear the rapidly growing furniture retailer's name. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.
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5302.0
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2020-09-11 00:00:00 UTC
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U.S. proposes to waive minimum flight requirements for airlines until March 2021
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AAL
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https://www.nasdaq.com/articles/u.s.-proposes-to-waive-minimum-flight-requirements-for-airlines-until-march-2021-2020-09
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nan
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WASHINGTON, Sept 11 (Reuters) - The U.S. Federal Aviation Administration (FAA) said Friday it is proposing extending temporarily waiving minimum flight requirements at some U.S. airports through late March 2021.
Airlines can lose their slots at congested airports if they do not use them at least 80% of the time. The FAA said it proposing extending waving requirements at New York's JFK and LaGuardia airports and Ronald Reagan Washington National Airport that were set to expire in October.
(Reporting by David Shepardson Editing by Chizu Nomiyama)
((David.Shepardson@thomsonreuters.com; 2028988324;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
WASHINGTON, Sept 11 (Reuters) - The U.S. Federal Aviation Administration (FAA) said Friday it is proposing extending temporarily waiving minimum flight requirements at some U.S. airports through late March 2021. The FAA said it proposing extending waving requirements at New York's JFK and LaGuardia airports and Ronald Reagan Washington National Airport that were set to expire in October. (Reporting by David Shepardson Editing by Chizu Nomiyama) ((David.Shepardson@thomsonreuters.com; 2028988324;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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WASHINGTON, Sept 11 (Reuters) - The U.S. Federal Aviation Administration (FAA) said Friday it is proposing extending temporarily waiving minimum flight requirements at some U.S. airports through late March 2021. The FAA said it proposing extending waving requirements at New York's JFK and LaGuardia airports and Ronald Reagan Washington National Airport that were set to expire in October. (Reporting by David Shepardson Editing by Chizu Nomiyama) ((David.Shepardson@thomsonreuters.com; 2028988324;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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WASHINGTON, Sept 11 (Reuters) - The U.S. Federal Aviation Administration (FAA) said Friday it is proposing extending temporarily waiving minimum flight requirements at some U.S. airports through late March 2021. The FAA said it proposing extending waving requirements at New York's JFK and LaGuardia airports and Ronald Reagan Washington National Airport that were set to expire in October. (Reporting by David Shepardson Editing by Chizu Nomiyama) ((David.Shepardson@thomsonreuters.com; 2028988324;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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WASHINGTON, Sept 11 (Reuters) - The U.S. Federal Aviation Administration (FAA) said Friday it is proposing extending temporarily waiving minimum flight requirements at some U.S. airports through late March 2021. Airlines can lose their slots at congested airports if they do not use them at least 80% of the time. The FAA said it proposing extending waving requirements at New York's JFK and LaGuardia airports and Ronald Reagan Washington National Airport that were set to expire in October.
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5303.0
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2020-09-11 00:00:00 UTC
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Colombia coal output nearly halved in Q2 to 9.7 mln tonnes, govt says
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AAL
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https://www.nasdaq.com/articles/colombia-coal-output-nearly-halved-in-q2-to-9.7-mln-tonnes-govt-says-2020-09-11
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BOGOTA, Sept 11 (Reuters) - Coal production in Colombia, the world's fifth-largest coal exporter, fell by 48.8% in the second quarter because of coronavirus quarantine measures and low international prices, the government said on Friday.
The South American country produced 9.7 million tonnes of the fuel between April and June, down from 18.8 million tonnes in the year-ago period, the mines and energy ministry and national mining agency said in a joint statement.
The country was under quarantine for more than five months from March to the end of August. Though coal mining was exempt from a full shutdown, many mines reduced operations.
"The reduction, and in some cases suspension, of activities at important coal projects, in an effort to mitigate contagion risks and the fall in international prices, drastically affected the numbers for the country's key mineral," the statement said.
Colombia produced 82.2 million tonnes of coal in 2019. Major miners include Cerrejon, jointly owned by BHP Group BHP.AX, Anglo American Plc AAL.L and Glencore Plc GLEN.L; Drummond DRMND.UL; and Prodeco, a unit of Glencore.
Gold production rose 14% from the second quarter of 2019, to 10 tonnes, thanks to high international prices.
"The increase in legal gold production in the midst of this context where prices have risen almost 30% confirms the golden opportunity this mineral offers for the sustainable recovery of Colombia," mines and energy minister Diego Mesa said in the statement.
Nickel production fell 9% from the year-ago period to 21.2 million pounds as COVID-19 reduced operations.
Mining royalties in the second quarter totaled 475.4 billion pesos, about $128 million, with coal contributing 79%, nickel 10%, gold 10% and other minerals 1%.
(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.
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Major miners include Cerrejon, jointly owned by BHP Group BHP.AX, Anglo American Plc AAL.L and Glencore Plc GLEN.L; Drummond DRMND.UL; and Prodeco, a unit of Glencore. "The reduction, and in some cases suspension, of activities at important coal projects, in an effort to mitigate contagion risks and the fall in international prices, drastically affected the numbers for the country's key mineral," the statement said. "The increase in legal gold production in the midst of this context where prices have risen almost 30% confirms the golden opportunity this mineral offers for the sustainable recovery of Colombia," mines and energy minister Diego Mesa said in the statement.
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Major miners include Cerrejon, jointly owned by BHP Group BHP.AX, Anglo American Plc AAL.L and Glencore Plc GLEN.L; Drummond DRMND.UL; and Prodeco, a unit of Glencore. The South American country produced 9.7 million tonnes of the fuel between April and June, down from 18.8 million tonnes in the year-ago period, the mines and energy ministry and national mining agency said in a joint statement. Colombia produced 82.2 million tonnes of coal in 2019.
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Major miners include Cerrejon, jointly owned by BHP Group BHP.AX, Anglo American Plc AAL.L and Glencore Plc GLEN.L; Drummond DRMND.UL; and Prodeco, a unit of Glencore. BOGOTA, Sept 11 (Reuters) - Coal production in Colombia, the world's fifth-largest coal exporter, fell by 48.8% in the second quarter because of coronavirus quarantine measures and low international prices, the government said on Friday. The South American country produced 9.7 million tonnes of the fuel between April and June, down from 18.8 million tonnes in the year-ago period, the mines and energy ministry and national mining agency said in a joint statement.
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Major miners include Cerrejon, jointly owned by BHP Group BHP.AX, Anglo American Plc AAL.L and Glencore Plc GLEN.L; Drummond DRMND.UL; and Prodeco, a unit of Glencore. Colombia produced 82.2 million tonnes of coal in 2019. Gold production rose 14% from the second quarter of 2019, to 10 tonnes, thanks to high international prices.
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5304.0
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2020-09-11 00:00:00 UTC
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Delta Air Lines: Wait Until Next Year
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AAL
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https://www.nasdaq.com/articles/delta-air-lines%3A-wait-until-next-year-2020-09-11
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Delta Air Lines (NYSE:DAL) has enough cash to survive deep into next year. That’s why investors have been nibbling on DAL stock since early August. The shares bottomed below $25 but open for trade Sept. 11 at over $32 per share. That’s a market cap of about $20.3 billion, 42% of last year’s sales.
DAL) plane flying through the clouds" width="300" height="169">
Source: NextNewMedia / Shutterstock.com
Confidence is based on one number: 15.781. That’s how much cash and equivalents Delta had, measured in billions of dollars, at the end of June. With analysts expecting a loss of $2.96 per share, roughly $1.9 billion, when the airline reports Oct. 13, this means it should have enough cash to clear the pandemic dive.
What most big players aren’t doing, however, is backing that assumption up with cash.
Why Delta and DAL Stock
Analysts are looking to Delta first because they like its COVID-19 strategy, which includes disinfecting planes between each flight and clear communications with passengers. They also see Delta’s SkyMiles arrangement with American Express (NYSE:AXP) as a “gold standard” in loyalty programs. Cardholders are still using the cards, accumulating frequent flyer miles. That could mean huge pent-up demand once the pandemic is over.
7 Sin Stocks to Buy Now as America Reopens
What big investors are looking at is the Transportation Security Administration’s (TSA) “throughput” numbers. This is the number of passengers going through airport security screenings each day, updated at 9 a.m. the following day.
For Sept. 9, this was 616,983, about 31% of the previous year’s figure. The number has been as high as 968,673 over the Labor Day holiday. But investors like Mark Tepper of Strategic Wealth Partners want to see something like 1.5 million, or 75% of normal traffic, before they jump into the space.
This means investors willing to take a risk can get into the new industry ahead of the big boys. Our Matt McCall says that’s a speculation worth making. “We’re gradually learning to live with Covid-19,” he writes, and Delta’s reputation is the best in the industry.
Morgan Stanley (NYSE:MS) has already pushed its cards in, giving Delta an “overweight” rating with a $50/share price target.
The Waiting Game
With further government aid to the industry unlikely, airlines are bracing themselves for a round of layoffs next month. Delta is among them.
While the airline can probably get through next June at its current burn rate, it would still like to reduce it. It plans to furlough nearly 2,000 pilots starting next month. About 1,800 had signed up for early retirement starting this month. What Delta calls “creative staffing options” have avoided flight attendant furloughs for the coming quarter.
Of 13 analysts following Delta stock, the average revenue estimate for the current quarter is $3.1 billion. That’s double the lockdown quarter revenue of $1.4 billion. The average estimate for the December quarter is $4.8 billion. Revenue of $30 billion is expected next year. In 2019, Delta’s revenue was over $47 billion.
Even with the slow ramp-up, no Tipranks analysts are saying sell Delta stock today. Their average one-year price target is $39/share, a 20% advance.
The Bottom Line
Airlines are usually subpar investments. Even before the pandemic, Delta’s stock performance trailed that of the average S&P 500 stock.
When blue skies do approach, however, this stock is going to fly. That makes it a great opportunity for investors with a five-year time horizon. You can buy it here, wait for the big boys to pile in, and probably see a fat profit.
There remain risks, but if those risks force weaker players like American Airlines (NYSE:AAL) and United Airlines (NYSE:UAL) into bankruptcy, Delta shares will do even better. It sets up as a reasonable speculation, so long as you’re not betting this year’s retirement on it.
Dana Blankenhorn has been a financial and technology journalist since 1978. He is the author of the environmental thriller Bridget O’Flynn and the Bear, available at the Amazon Kindle store. Write him at danablankenhorn@gmail.com or follow him on Twitter at @danablankenhorn. As of this writing he owned no shares in companies mentioned in this story.
The post Delta Air Lines: Wait Until Next Year appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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There remain risks, but if those risks force weaker players like American Airlines (NYSE:AAL) and United Airlines (NYSE:UAL) into bankruptcy, Delta shares will do even better. With analysts expecting a loss of $2.96 per share, roughly $1.9 billion, when the airline reports Oct. 13, this means it should have enough cash to clear the pandemic dive. 7 Sin Stocks to Buy Now as America Reopens What big investors are looking at is the Transportation Security Administration’s (TSA) “throughput” numbers.
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There remain risks, but if those risks force weaker players like American Airlines (NYSE:AAL) and United Airlines (NYSE:UAL) into bankruptcy, Delta shares will do even better. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Delta Air Lines (NYSE:DAL) has enough cash to survive deep into next year. Of 13 analysts following Delta stock, the average revenue estimate for the current quarter is $3.1 billion.
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There remain risks, but if those risks force weaker players like American Airlines (NYSE:AAL) and United Airlines (NYSE:UAL) into bankruptcy, Delta shares will do even better. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Delta Air Lines (NYSE:DAL) has enough cash to survive deep into next year. Why Delta and DAL Stock Analysts are looking to Delta first because they like its COVID-19 strategy, which includes disinfecting planes between each flight and clear communications with passengers.
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There remain risks, but if those risks force weaker players like American Airlines (NYSE:AAL) and United Airlines (NYSE:UAL) into bankruptcy, Delta shares will do even better. Delta is among them. Of 13 analysts following Delta stock, the average revenue estimate for the current quarter is $3.1 billion.
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5305.0
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2020-09-10 00:00:00 UTC
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American Airline's Envoy to close New York City bases, memo shows
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AAL
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https://www.nasdaq.com/articles/american-airlines-envoy-to-close-new-york-city-bases-memo-shows-2020-09-10
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nan
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Corrects spelling error in 3rd paragraph
CHICAGO, Sept 10 (Reuters) - American Airline's AAL.O wholly-owned regional carrier Envoy is closing its bases at La Guardia and John F. Kennedy airports in New York as it "makes changes to its flying profile in 2021," according to a memo from Envoy to employees seen by Reuters.
Envoy, which helps American feed traffic from smaller cities to larger destinations, confirmed the plan, saying it is in response to changes in customer demand.
The announcement follows news in July that American Airlines was teaming up with JetBlue Airways JBLU.O to boost flying options in New York and Boston.
(Reporting by Tracy Rucinski Editing by Chizu Nomiyama)
((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.
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Corrects spelling error in 3rd paragraph CHICAGO, Sept 10 (Reuters) - American Airline's AAL.O wholly-owned regional carrier Envoy is closing its bases at La Guardia and John F. Kennedy airports in New York as it "makes changes to its flying profile in 2021," according to a memo from Envoy to employees seen by Reuters. Envoy, which helps American feed traffic from smaller cities to larger destinations, confirmed the plan, saying it is in response to changes in customer demand. The announcement follows news in July that American Airlines was teaming up with JetBlue Airways JBLU.O to boost flying options in New York and Boston.
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Corrects spelling error in 3rd paragraph CHICAGO, Sept 10 (Reuters) - American Airline's AAL.O wholly-owned regional carrier Envoy is closing its bases at La Guardia and John F. Kennedy airports in New York as it "makes changes to its flying profile in 2021," according to a memo from Envoy to employees seen by Reuters. The announcement follows news in July that American Airlines was teaming up with JetBlue Airways JBLU.O to boost flying options in New York and Boston. (Reporting by Tracy Rucinski Editing by Chizu Nomiyama) ((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.
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Corrects spelling error in 3rd paragraph CHICAGO, Sept 10 (Reuters) - American Airline's AAL.O wholly-owned regional carrier Envoy is closing its bases at La Guardia and John F. Kennedy airports in New York as it "makes changes to its flying profile in 2021," according to a memo from Envoy to employees seen by Reuters. Envoy, which helps American feed traffic from smaller cities to larger destinations, confirmed the plan, saying it is in response to changes in customer demand. (Reporting by Tracy Rucinski Editing by Chizu Nomiyama) ((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.
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Corrects spelling error in 3rd paragraph CHICAGO, Sept 10 (Reuters) - American Airline's AAL.O wholly-owned regional carrier Envoy is closing its bases at La Guardia and John F. Kennedy airports in New York as it "makes changes to its flying profile in 2021," according to a memo from Envoy to employees seen by Reuters. Envoy, which helps American feed traffic from smaller cities to larger destinations, confirmed the plan, saying it is in response to changes in customer demand. The announcement follows news in July that American Airlines was teaming up with JetBlue Airways JBLU.O to boost flying options in New York and Boston.
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5306.0
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2020-09-10 00:00:00 UTC
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JetBlue to add more routes, fly some parked jets
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AAL
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https://www.nasdaq.com/articles/jetblue-to-add-more-routes-fly-some-parked-jets-2020-09-10
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Adds details on new routes, background
Sept 10 (Reuters) - JetBlue Airways Corp JBLU.O said on Thursday it will add 24 routes later this year as the airline looks to generate cash and said it plans to fly some temporarily parked jets to the new destinations.
The new routes will be in regions where the company anticipates increasing demand for leisure travel, JetBlue said.
Airlines globally have been scrambling to shore up cash and are cutting costs until demand returns, following the hit from the COVID-19 pandemic.
New York-based JetBlue said in June it would add 30 new domestic routes and entered a strategic partnership with American Airlines Group Inc AAL.O to boost flying options in New York and Boston.
JetBlue previously said it expects third-quarter capacity to be down at least 45% versus last year, following a conservative approach to adding flights back to its schedule.
The airline had $3.4 billion of liquidity at June end, and had earlier forecast a daily cash burn between $7 million and $9 million in the third quarter.
(Reporting by Rachit Vats in Bengaluru; Editing by Shounak Dasgupta)
((Rachit.Vats@tr.com; within U.S. +1 646 223 8780, outside U.S. +91 80 61822828; Reuters Messaging: rachit.vats.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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New York-based JetBlue said in June it would add 30 new domestic routes and entered a strategic partnership with American Airlines Group Inc AAL.O to boost flying options in New York and Boston. Airlines globally have been scrambling to shore up cash and are cutting costs until demand returns, following the hit from the COVID-19 pandemic. JetBlue previously said it expects third-quarter capacity to be down at least 45% versus last year, following a conservative approach to adding flights back to its schedule.
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New York-based JetBlue said in June it would add 30 new domestic routes and entered a strategic partnership with American Airlines Group Inc AAL.O to boost flying options in New York and Boston. Adds details on new routes, background Sept 10 (Reuters) - JetBlue Airways Corp JBLU.O said on Thursday it will add 24 routes later this year as the airline looks to generate cash and said it plans to fly some temporarily parked jets to the new destinations. The airline had $3.4 billion of liquidity at June end, and had earlier forecast a daily cash burn between $7 million and $9 million in the third quarter.
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New York-based JetBlue said in June it would add 30 new domestic routes and entered a strategic partnership with American Airlines Group Inc AAL.O to boost flying options in New York and Boston. Adds details on new routes, background Sept 10 (Reuters) - JetBlue Airways Corp JBLU.O said on Thursday it will add 24 routes later this year as the airline looks to generate cash and said it plans to fly some temporarily parked jets to the new destinations. (Reporting by Rachit Vats in Bengaluru; Editing by Shounak Dasgupta) ((Rachit.Vats@tr.com; within U.S. +1 646 223 8780, outside U.S. +91 80 61822828; Reuters Messaging: rachit.vats.thomsonreuters.com@reuters.net)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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New York-based JetBlue said in June it would add 30 new domestic routes and entered a strategic partnership with American Airlines Group Inc AAL.O to boost flying options in New York and Boston. Adds details on new routes, background Sept 10 (Reuters) - JetBlue Airways Corp JBLU.O said on Thursday it will add 24 routes later this year as the airline looks to generate cash and said it plans to fly some temporarily parked jets to the new destinations. The new routes will be in regions where the company anticipates increasing demand for leisure travel, JetBlue said.
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5307.0
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2020-09-09 00:00:00 UTC
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United Reaches Deal With Pilots Union to Avoid Furloughs
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AAL
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https://www.nasdaq.com/articles/united-reaches-deal-with-pilots-union-to-avoid-furloughs-2020-09-09
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United Airlines Holdings (NASDAQ: UAL) has a tentative deal with a key union that would allow it to avoid furloughing nearly 3,000 pilots starting on Oct. 1.
United earlier this month said it intends to furlough more than 16,000 workers, including 2,850 pilots, once government restrictions on layoffs expire on Sept. 30. The airlines have been hit hard by the COVID-19 pandemic but had been barred from downsizing as a condition for receiving $25 billion in payroll assistance as part of the CARES Act.
Image source: United Airlines.
The summer vacation season is over, and the airlines are making plans to shrink in the months to come. United earlier in the day Wednesday said it expects the number of available seats in the third quarter to be down 70% year over year, worse than previous guidance for a 65% capacity decline.
The airline, which is burning through about $25 million per day, said that it has seen "a moderate improvement" in bookings but expects a long and choppy recovery.
Details of the deal between United and its chapter of the Air Line Pilots Association (ALPA) were not disclosed, but ALPA officials have been searching for ways to help the airline cut costs without resorting to furloughs. The deal is still subject to approval via a vote by United's 13,000 pilots.
Airlines are trying to balance the need to cut costs with retaining the flexibility to grow quickly should travel demand rebound faster than expected. Southwest Airlines (NYSE: LUV) as well as discounters Spirit Airlines (NYSE: SAVE) and JetBlue Airways (NASDAQ: JBLU) have arrangements in place to avoid pilot furloughs, while Delta Air Lines (NYSE: DAL) and American Airlines Group (NASDAQ: AAL) are still considering furloughs.
An agreement, or a lack of one, could have long-lasting implications for the airlines. United after years of battles with its unions had enjoyed a period of relative labor harmony prior to the pandemic and would do well if it is able to find ways to bring down the costs without resorting to layoffs.
10 stocks we like better than United Airlines Holdings
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*Stock Advisor returns as of August 1, 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.
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Southwest Airlines (NYSE: LUV) as well as discounters Spirit Airlines (NYSE: SAVE) and JetBlue Airways (NASDAQ: JBLU) have arrangements in place to avoid pilot furloughs, while Delta Air Lines (NYSE: DAL) and American Airlines Group (NASDAQ: AAL) are still considering furloughs. United Airlines Holdings (NASDAQ: UAL) has a tentative deal with a key union that would allow it to avoid furloughing nearly 3,000 pilots starting on Oct. 1. The airlines have been hit hard by the COVID-19 pandemic but had been barred from downsizing as a condition for receiving $25 billion in payroll assistance as part of the CARES Act.
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Southwest Airlines (NYSE: LUV) as well as discounters Spirit Airlines (NYSE: SAVE) and JetBlue Airways (NASDAQ: JBLU) have arrangements in place to avoid pilot furloughs, while Delta Air Lines (NYSE: DAL) and American Airlines Group (NASDAQ: AAL) are still considering furloughs. See the 10 stocks *Stock Advisor returns as of August 1, 2020 Lou Whiteman owns shares of Delta Air Lines and Spirit Airlines. The Motley Fool recommends Delta Air Lines, JetBlue Airways, and Southwest Airlines.
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Southwest Airlines (NYSE: LUV) as well as discounters Spirit Airlines (NYSE: SAVE) and JetBlue Airways (NASDAQ: JBLU) have arrangements in place to avoid pilot furloughs, while Delta Air Lines (NYSE: DAL) and American Airlines Group (NASDAQ: AAL) are still considering furloughs. Details of the deal between United and its chapter of the Air Line Pilots Association (ALPA) were not disclosed, but ALPA officials have been searching for ways to help the airline cut costs without resorting to furloughs. See the 10 stocks *Stock Advisor returns as of August 1, 2020 Lou Whiteman owns shares of Delta Air Lines and Spirit Airlines.
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Southwest Airlines (NYSE: LUV) as well as discounters Spirit Airlines (NYSE: SAVE) and JetBlue Airways (NASDAQ: JBLU) have arrangements in place to avoid pilot furloughs, while Delta Air Lines (NYSE: DAL) and American Airlines Group (NASDAQ: AAL) are still considering furloughs. United earlier in the day Wednesday said it expects the number of available seats in the third quarter to be down 70% year over year, worse than previous guidance for a 65% capacity decline. See the 10 stocks *Stock Advisor returns as of August 1, 2020 Lou Whiteman owns shares of Delta Air Lines and Spirit Airlines.
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5308.0
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2020-09-09 00:00:00 UTC
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Why Airline Shares Are Falling Today
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AAL
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https://www.nasdaq.com/articles/why-airline-shares-are-falling-today-2020-09-09
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nan
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What happened
Airline shares were under pressure on Wednesday as a number of carriers updated their outlook for the third quarter, highlighting the slow pace of the industry's recovery. Concerns that the U.S. government will not be offering any further assistance also weighed on the shares.
Shares of American Airlines Group (NASDAQ: AAL) led the way down, off by as much as 6.1% at one point, while shares of Spirit Airlines (NYSE: SAVE) were off by nearly 6% and Southwest Airlines (NYSE: LUV) shares were down nearly 5% on a highly volatile trading day for the sector. Every U.S. airline stock is down as of 2:30 EDT, even as the S&P 500 is up more than 2.3%.
So what
The airlines have been hit hard by the COVID-19 pandemic, which has limited air travel for much of the year and depressed industry revenue. The carriers are not expecting traffic to return until after there is a widely distributed vaccine, but the stocks in recent months have tended to trade up and down on any guidance that would suggest a quicker, or slower, recovery.
Image source: Getty Images.
The stocks got a lift on Tuesday after a relatively busy Labor Day holiday weekend, but airline management teams threw cold water on that optimism on Wednesday. In a series of regulatory filings and presentations at a Wall Street conference, industry leaders said to expect a slow, choppy recovery.
United Airlines Holdings cut third-quarter guidance and said it does not expect the recovery "to follow a linear path." American, meanwhile, said it was in discussions with Boeing about deferring the delivery of 18 737 MAX jets and said it is considering applying for more U.S. Treasury loans as it looks to boost its total liquidity.
Fears that airlines will be excluded from any new stimulus plan passed in Washington were also weighing on the stocks. The industry received $50 billion as part of the CARES Act, including $25 billion conditioned on the airlines doing no layoffs prior to Sept. 30. Union leaders are in Washington this week lobbying for an extension of that funding, and the layoff prohibition, but airlines are not part of draft legislation floated by Senate leadership.
Absent an assist from Washington, look for the airlines to aggressively shrink their operations in October. American has said it could shed up to 40,000 jobs, while Spirit and Southwest, along with United, have deals in place to cut costs while avoiding pilot furloughs.
Now what
I said on Tuesday when the stocks were higher on the Labor Day travel numbers not to get too excited about one data point. I'd advise the same today as investors are selling off due to the planned cuts. The airlines are facing a multi-year recovery that is likely to be full of false starts and loaded with volatility.
The industry continues to burn through cash at an alarming rate, but fortunately even the weakest of the airlines, American included, have billions in liquidity to fall back on. The efforts to bring down costs will provide more time, and hopefully allow the industry to avoid bankruptcy filings.
For investors, it is best to focus on the long term. I believe it is safe to invest in airline stocks, but would advise limiting the industry to a small part of a diversified portfolio and sticking to shares of Southwest and other top airlines with the best odds to make it through the crisis.
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.
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*Stock Advisor returns as of August 1, 2020
Lou Whiteman owns shares of Spirit Airlines. The Motley Fool owns shares of Spirit Airlines. 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.
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Shares of American Airlines Group (NASDAQ: AAL) led the way down, off by as much as 6.1% at one point, while shares of Spirit Airlines (NYSE: SAVE) were off by nearly 6% and Southwest Airlines (NYSE: LUV) shares were down nearly 5% on a highly volatile trading day for the sector. The carriers are not expecting traffic to return until after there is a widely distributed vaccine, but the stocks in recent months have tended to trade up and down on any guidance that would suggest a quicker, or slower, recovery. The stocks got a lift on Tuesday after a relatively busy Labor Day holiday weekend, but airline management teams threw cold water on that optimism on Wednesday.
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Shares of American Airlines Group (NASDAQ: AAL) led the way down, off by as much as 6.1% at one point, while shares of Spirit Airlines (NYSE: SAVE) were off by nearly 6% and Southwest Airlines (NYSE: LUV) shares were down nearly 5% on a highly volatile trading day for the sector. Now what I said on Tuesday when the stocks were higher on the Labor Day travel numbers not to get too excited about one data point. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.
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Shares of American Airlines Group (NASDAQ: AAL) led the way down, off by as much as 6.1% at one point, while shares of Spirit Airlines (NYSE: SAVE) were off by nearly 6% and Southwest Airlines (NYSE: LUV) shares were down nearly 5% on a highly volatile trading day for the sector. I believe it is safe to invest in airline stocks, but would advise limiting the industry to a small part of a diversified portfolio and sticking to shares of Southwest and other top airlines with the best odds to make it through the crisis. See the 10 stocks *Stock Advisor returns as of August 1, 2020 Lou Whiteman owns shares of Spirit Airlines.
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Shares of American Airlines Group (NASDAQ: AAL) led the way down, off by as much as 6.1% at one point, while shares of Spirit Airlines (NYSE: SAVE) were off by nearly 6% and Southwest Airlines (NYSE: LUV) shares were down nearly 5% on a highly volatile trading day for the sector. In a series of regulatory filings and presentations at a Wall Street conference, industry leaders said to expect a slow, choppy recovery. The industry received $50 billion as part of the CARES Act, including $25 billion conditioned on the airlines doing no layoffs prior to Sept. 30.
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5309.0
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2020-09-09 00:00:00 UTC
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Why the Stock Market Bounce Didn't Lift Airlines Wednesday
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AAL
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https://www.nasdaq.com/articles/why-the-stock-market-bounce-didnt-lift-airlines-wednesday-2020-09-09
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The stock market finally moved higher on Wednesday, ending a streak of three big losing days for major market benchmarks. There wasn't any particularly obvious news that prompted the bounce, but the rise in volatility that investors have seen recently made the abrupt about-face in stock price movements easier to understand. The Dow Jones Industrial Average (DJINDICES: ^DJI) and the S&P 500 (SNPINDEX: ^GSPC) were up 1.5% to 2%, while the Nasdaq Composite managed to climb somewhat higher.
Today's stock market
INDEX
PERCENTAGE CHANGE
POINT CHANGE
Dow
+1.60%
+440
S&P 500
+2.01%
+67
Nasdaq Composite
+2.71%
+294
Data source: Yahoo! Finance.
Even with a nice performance from the markets overall, not every sector was able to keep up. In particular, airline stocks slumped across the board, and shareholders seem nervous about whether the optimism that's lifting the rest of the stock market will end up applying to air carriers.
Image source: Getty Images.
A big hit to the airline sector
None of the airlines was spared from declines, although the size of the down moves differed from stock to stock. Leading the way lower were American Airlines Group (NASDAQ: AAL) and Spirit Airlines (NYSE: SAVE), which fell more than 4%. Losses of 3% were more common, hitting United Airlines Holdings (NASDAQ: UAL), Southwest Airlines (NYSE: LUV), and Hawaiian Holdings (NASDAQ: HA).
Delta Air Lines (NYSE: DAL) got a bit of a break, falling just 2% along with Alaska Air Group (NYSE: ALK). JetBlue Airways (NASDAQ: JBLU) fared the best with declines of just 1.5%.
The general mood among airline investors took a hit for a couple of reasons. First, United chose to reduce its guidance for the third quarter. The carrier now expects to see passenger revenue plunge 85% from year-ago levels, down from a previous prediction for an 83% drop. That comes even as United has cut its capacity by about 70%, slightly more than the 65% reduction it previously anticipated.
More broadly, investors were troubled by the fact that the recovery in air travel has been slow and thus far had only minimal impact on airlines' finances. Over the Labor Day weekend, passenger counts at U.S. airports topped 900,000 on a couple of days. That's the best since before the COVID-19 pandemic, but it's still down by far more than half from year-ago levels.
Looking to Washington
Another source of worry came from the impending end of programs designed to help airlines. Part of the stimulus packages that lawmakers passed in early spring included billions of dollars of loans for air carriers. This money was linked to promises from airlines that they wouldn't take action to reduce their workforces despite the obvious reduction in traffic levels.
At the beginning of October, those rules could all change. United, for instance, had said that it expects to furlough 16,000 workers once restrictions on layoffs end. It reached a tentative agreement in collective bargaining with its pilots union to avoid 3,000 pilot furloughs, but it's unclear whether United will take the same measures with other employee groups.
Other airlines have similar plans in place, and similar uncertainties facing workers. Meanwhile, Congress is no closer to passing legislation to continue the programs in some form.
Airline investors have hoped that the pandemic would subside more quickly than it has, allowing things to return to a pre-coronavirus normal. That hasn't happened, and it's becoming increasingly apparent that it may not happen for quite a while. Until it does, airlines will have to work hard to adapt and survive.
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 August 1, 2020
Dan Caplinger has no position in any of the stocks mentioned. The Motley Fool owns shares of Spirit Airlines. The Motley Fool recommends Alaska Air Group, Delta Air Lines, Hawaiian Holdings, JetBlue Airways, and Southwest Airlines. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Leading the way lower were American Airlines Group (NASDAQ: AAL) and Spirit Airlines (NYSE: SAVE), which fell more than 4%. There wasn't any particularly obvious news that prompted the bounce, but the rise in volatility that investors have seen recently made the abrupt about-face in stock price movements easier to understand. More broadly, investors were troubled by the fact that the recovery in air travel has been slow and thus far had only minimal impact on airlines' finances.
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Leading the way lower were American Airlines Group (NASDAQ: AAL) and Spirit Airlines (NYSE: SAVE), which fell more than 4%. Losses of 3% were more common, hitting United Airlines Holdings (NASDAQ: UAL), Southwest Airlines (NYSE: LUV), and Hawaiian Holdings (NASDAQ: HA). The Motley Fool recommends Alaska Air Group, Delta Air Lines, Hawaiian Holdings, JetBlue Airways, and Southwest Airlines.
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Leading the way lower were American Airlines Group (NASDAQ: AAL) and Spirit Airlines (NYSE: SAVE), which fell more than 4%. In particular, airline stocks slumped across the board, and shareholders seem nervous about whether the optimism that's lifting the rest of the stock market will end up applying to air carriers. A big hit to the airline sector None of the airlines was spared from declines, although the size of the down moves differed from stock to stock.
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Leading the way lower were American Airlines Group (NASDAQ: AAL) and Spirit Airlines (NYSE: SAVE), which fell more than 4%. A big hit to the airline sector None of the airlines was spared from declines, although the size of the down moves differed from stock to stock. Losses of 3% were more common, hitting United Airlines Holdings (NASDAQ: UAL), Southwest Airlines (NYSE: LUV), and Hawaiian Holdings (NASDAQ: HA).
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5310.0
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2020-09-09 00:00:00 UTC
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BUZZ-U.S. STOCKS ON THE MOVE-Ampio Pharmaceuticals, Ibio, Nautilus, Tesla Inc
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AAL
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https://www.nasdaq.com/articles/buzz-u.s.-stocks-on-the-move-ampio-pharmaceuticals-ibio-nautilus-tesla-inc-2020-09-09
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nan
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Eikon search string for individual stock moves: STXBZ
The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi
The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh
U.S. stocks jumped on Wednesday as investors took advantage of a three-day sell-off to buy into high-flying tech stocks, a day after the Nasdaq confirmed correction territory. .N
At 11:30 a.m. ET, the Dow Jones Industrial Average .DJI was up 1.85% at 28,010.23. The S&P 500 .SPX was up 2.04% at 3,399.76 and the Nasdaq Composite .IXIC was up 2.46% at 11,114.423. The top three S&P 500 .PG.INX percentage gainers: ** Qorvo Inc , up 8.2% ** Nvidia Corp , up 5.6% ** Corning Inc , up 5.3% The top three S&P 500 .PL.INX percentage losers: ** Tiffany & Co , down 8.1% ** American Airlines Group Inc , down 4.8% ** Carnival Corp , down 4.3% The top three NYSE .PG.N percentage gainers: ** 500.Com Ltd , up 18.2% ** Titan International Inc , up 12.8% ** Vivnt Smart Home Inc , up 11% The top three NYSE .PL.N percentage losers: ** Slack Technologies Inc , down 15.3% ** Ashford Hospitality Trust Inc , down 13.8% ** Tiffany & Co , down 8.9% The top three Nasdaq .PG.O percentage gainers: ** Intra-cellular Therapies Inc , up 76% ** Trillium Therapeutics Inc , up 36.4% ** Astrotech Corp , up 30.8% The top three Nasdaq .PL.O percentage losers: ** Mastercraft Boat Holdings Inc , down 21.4% ** VivoPower International Plc , down 17.8% ** Applied Genetic Technologies Corp , down 15.6% ** Moderna Inc MRNA.O: up 3.5% ** Vaxart Inc VXRT.O: up 5.0%
BUZZ-Rivals rise as AstraZeneca pauses COVID-19 vaccine trials ** Tiffany & Co TIF.N: down 8.1%
BUZZ-Slides as LVMH casts doubts on takeover ** Watford Holdings Ltd WTRE.O: up 24.5%
BUZZ-Jumps on Reuters report of buyout offer from Arch Capital ** Inovio Pharmaceuticals Inc INO.O: up 8.6%
BUZZ-Success or failure of COVID-19 vaccine to impact its future ** Pfizer Inc PFE.N: up 1.2%
BUZZ-Rises after EU talks for doses of COVID-19 vaccine candidate ** Amazon.com Inc AMZN.O: up 3.4%
BUZZ-Jefferies hikes ad business valuation on potential jump in consumer goods spending ** Slack Technologies Inc SLACK.N: down 14.5%
BUZZ-Falls as brokerages cut PT after Q2 billings disappoint ** Intra-Cellular Therapies ITCI.O: up 76.0%
BUZZ-Soars on positive bipolar disorder therapy study results ** Trillium Therapeutics Inc TRIL.O: up 36.4%
BUZZ-Surges on $25 mln equity investment from Pfizer ** Moleculin Biotech Inc MBRX.O: up 3.3%
BUZZ-Rises as FDA positive about cancer therapy study ** Ampio Pharmaceuticals Inc AMPE.A: up 7.4%
BUZZ-Rises after positive data on IV treatment for COVID-19 ** Ibio Inc IBIO.A: up 6.3%
BUZZ-Jumps after selecting lead coronavirus vaccine candidate ** Nautilus Inc NLS.N: up 3.8%
BUZZ-Jumps after Citron says co "fastest growing name in stay at home fitness" ** Tesla Inc TSLA.O: up 5.1%
BUZZ-Gains as tech stocks rebound from sell-off
The 11 major S&P 500 sectors:
Communication Services
.SPLRCL
up 1.23%
Consumer Discretionary
.SPLRCD
up 2.08%
Consumer Staples
.SPLRCS
up 1.71%
Energy
.SPNY
up 1.33%
Financial
.SPSY
up 0.88%
Health
.SPXHC
up 2.04%
Industrial
.SPLRCI
up 1.55%
Information Technology
.SPLRCT
up 3.14%
Materials
.SPLRCM
up 2.34%
Real Estate
.SPLRCR
up 1.07%
Utilities
.SPLRCU
up 1.89%
(Compiled by Shivani Kumaresan in Bengaluru)
((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.
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Eikon search string for individual stock moves: STXBZ The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh U.S. stocks jumped on Wednesday as investors took advantage of a three-day sell-off to buy into high-flying tech stocks, a day after the Nasdaq confirmed correction territory. The top three S&P 500 .PG.INX percentage gainers: ** Qorvo Inc , up 8.2% ** Nvidia Corp , up 5.6% ** Corning Inc , up 5.3% The top three S&P 500 .PL.INX percentage losers: ** Tiffany & Co , down 8.1% ** American Airlines Group Inc , down 4.8% ** Carnival Corp , down 4.3% The top three NYSE .PG.N percentage gainers: ** 500.Com Ltd , up 18.2% ** Titan International Inc , up 12.8% ** Vivnt Smart Home Inc , up 11% The top three NYSE .PL.N percentage losers: ** Slack Technologies Inc , down 15.3% ** Ashford Hospitality Trust Inc , down 13.8% ** Tiffany & Co , down 8.9% The top three Nasdaq .PG.O percentage gainers: ** Intra-cellular Therapies Inc , up 76% ** Trillium Therapeutics Inc , up 36.4% ** Astrotech Corp , up 30.8% The top three Nasdaq .PL.O percentage losers: ** Mastercraft Boat Holdings Inc , down 21.4% ** VivoPower International Plc , down 17.8% ** Applied Genetic Technologies Corp , down 15.6% ** Moderna Inc MRNA.O: up 3.5% ** Vaxart Inc VXRT.O: up 5.0% BUZZ-Rivals rise as AstraZeneca pauses COVID-19 vaccine trials ** Tiffany & Co TIF.N: down 8.1% BUZZ-Slides as LVMH casts doubts on takeover ** Watford Holdings Ltd WTRE.O: up 24.5% BUZZ-Jumps on Reuters report of buyout offer from Arch Capital ** Inovio Pharmaceuticals Inc INO.O: up 8.6% BUZZ-Success or failure of COVID-19 vaccine to impact its future ** Pfizer Inc PFE.N: up 1.2% BUZZ-Rises after EU talks for doses of COVID-19 vaccine candidate ** Amazon.com Inc AMZN.O: up 3.4% BUZZ-Jefferies hikes ad business valuation on potential jump in consumer goods spending ** Slack Technologies Inc SLACK.N: down 14.5% BUZZ-Falls as brokerages cut PT after Q2 billings disappoint ** Intra-Cellular Therapies ITCI.O: up 76.0% BUZZ-Soars on positive bipolar disorder therapy study results ** Trillium Therapeutics Inc TRIL.O: up 36.4% BUZZ-Surges on $25 mln equity investment from Pfizer ** Moleculin Biotech Inc MBRX.O: up 3.3% BUZZ-Rises as FDA positive about cancer therapy study ** Ampio Pharmaceuticals Inc AMPE.A: up 7.4% BUZZ-Rises after positive data on IV treatment for COVID-19 ** Ibio Inc IBIO.A: up 6.3% BUZZ-Jumps after selecting lead coronavirus vaccine candidate ** Nautilus Inc NLS.N: up 3.8% BUZZ-Jumps after Citron says co "fastest growing name in stay at home fitness" ** Tesla Inc TSLA.O: up 5.1% BUZZ-Gains as tech stocks rebound from sell-off The 11 major S&P 500 sectors: Communication Services up 1.89% (Compiled by Shivani Kumaresan in Bengaluru) ((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.
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Eikon search string for individual stock moves: STXBZ The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh U.S. stocks jumped on Wednesday as investors took advantage of a three-day sell-off to buy into high-flying tech stocks, a day after the Nasdaq confirmed correction territory. The top three S&P 500 .PG.INX percentage gainers: ** Qorvo Inc , up 8.2% ** Nvidia Corp , up 5.6% ** Corning Inc , up 5.3% The top three S&P 500 .PL.INX percentage losers: ** Tiffany & Co , down 8.1% ** American Airlines Group Inc , down 4.8% ** Carnival Corp , down 4.3% The top three NYSE .PG.N percentage gainers: ** 500.Com Ltd , up 18.2% ** Titan International Inc , up 12.8% ** Vivnt Smart Home Inc , up 11% The top three NYSE .PL.N percentage losers: ** Slack Technologies Inc , down 15.3% ** Ashford Hospitality Trust Inc , down 13.8% ** Tiffany & Co , down 8.9% The top three Nasdaq .PG.O percentage gainers: ** Intra-cellular Therapies Inc , up 76% ** Trillium Therapeutics Inc , up 36.4% ** Astrotech Corp , up 30.8% The top three Nasdaq .PL.O percentage losers: ** Mastercraft Boat Holdings Inc , down 21.4% ** VivoPower International Plc , down 17.8% ** Applied Genetic Technologies Corp , down 15.6% ** Moderna Inc MRNA.O: up 3.5% ** Vaxart Inc VXRT.O: up 5.0% BUZZ-Rivals rise as AstraZeneca pauses COVID-19 vaccine trials ** Tiffany & Co TIF.N: down 8.1% BUZZ-Slides as LVMH casts doubts on takeover ** Watford Holdings Ltd WTRE.O: up 24.5% BUZZ-Jumps on Reuters report of buyout offer from Arch Capital ** Inovio Pharmaceuticals Inc INO.O: up 8.6% BUZZ-Success or failure of COVID-19 vaccine to impact its future ** Pfizer Inc PFE.N: up 1.2% BUZZ-Rises after EU talks for doses of COVID-19 vaccine candidate ** Amazon.com Inc AMZN.O: up 3.4% BUZZ-Jefferies hikes ad business valuation on potential jump in consumer goods spending ** Slack Technologies Inc SLACK.N: down 14.5% BUZZ-Falls as brokerages cut PT after Q2 billings disappoint ** Intra-Cellular Therapies ITCI.O: up 76.0% BUZZ-Soars on positive bipolar disorder therapy study results ** Trillium Therapeutics Inc TRIL.O: up 36.4% BUZZ-Surges on $25 mln equity investment from Pfizer ** Moleculin Biotech Inc MBRX.O: up 3.3% BUZZ-Rises as FDA positive about cancer therapy study ** Ampio Pharmaceuticals Inc AMPE.A: up 7.4% BUZZ-Rises after positive data on IV treatment for COVID-19 ** Ibio Inc IBIO.A: up 6.3% BUZZ-Jumps after selecting lead coronavirus vaccine candidate ** Nautilus Inc NLS.N: up 3.8% BUZZ-Jumps after Citron says co "fastest growing name in stay at home fitness" ** Tesla Inc TSLA.O: up 5.1% BUZZ-Gains as tech stocks rebound from sell-off The 11 major S&P 500 sectors: Communication Services up 1.89% (Compiled by Shivani Kumaresan in Bengaluru) ((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.
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ET, the Dow Jones Industrial Average .DJI was up 1.85% at 28,010.23. The top three S&P 500 .PG.INX percentage gainers: ** Qorvo Inc , up 8.2% ** Nvidia Corp , up 5.6% ** Corning Inc , up 5.3% The top three S&P 500 .PL.INX percentage losers: ** Tiffany & Co , down 8.1% ** American Airlines Group Inc , down 4.8% ** Carnival Corp , down 4.3% The top three NYSE .PG.N percentage gainers: ** 500.Com Ltd , up 18.2% ** Titan International Inc , up 12.8% ** Vivnt Smart Home Inc , up 11% The top three NYSE .PL.N percentage losers: ** Slack Technologies Inc , down 15.3% ** Ashford Hospitality Trust Inc , down 13.8% ** Tiffany & Co , down 8.9% The top three Nasdaq .PG.O percentage gainers: ** Intra-cellular Therapies Inc , up 76% ** Trillium Therapeutics Inc , up 36.4% ** Astrotech Corp , up 30.8% The top three Nasdaq .PL.O percentage losers: ** Mastercraft Boat Holdings Inc , down 21.4% ** VivoPower International Plc , down 17.8% ** Applied Genetic Technologies Corp , down 15.6% ** Moderna Inc MRNA.O: up 3.5% ** Vaxart Inc VXRT.O: up 5.0% BUZZ-Rivals rise as AstraZeneca pauses COVID-19 vaccine trials ** Tiffany & Co TIF.N: down 8.1% BUZZ-Slides as LVMH casts doubts on takeover ** Watford Holdings Ltd WTRE.O: up 24.5% BUZZ-Jumps on Reuters report of buyout offer from Arch Capital ** Inovio Pharmaceuticals Inc INO.O: up 8.6% BUZZ-Success or failure of COVID-19 vaccine to impact its future ** Pfizer Inc PFE.N: up 1.2% BUZZ-Rises after EU talks for doses of COVID-19 vaccine candidate ** Amazon.com Inc AMZN.O: up 3.4% BUZZ-Jefferies hikes ad business valuation on potential jump in consumer goods spending ** Slack Technologies Inc SLACK.N: down 14.5% BUZZ-Falls as brokerages cut PT after Q2 billings disappoint ** Intra-Cellular Therapies ITCI.O: up 76.0% BUZZ-Soars on positive bipolar disorder therapy study results ** Trillium Therapeutics Inc TRIL.O: up 36.4% BUZZ-Surges on $25 mln equity investment from Pfizer ** Moleculin Biotech Inc MBRX.O: up 3.3% BUZZ-Rises as FDA positive about cancer therapy study ** Ampio Pharmaceuticals Inc AMPE.A: up 7.4% BUZZ-Rises after positive data on IV treatment for COVID-19 ** Ibio Inc IBIO.A: up 6.3% BUZZ-Jumps after selecting lead coronavirus vaccine candidate ** Nautilus Inc NLS.N: up 3.8% BUZZ-Jumps after Citron says co "fastest growing name in stay at home fitness" ** Tesla Inc TSLA.O: up 5.1% BUZZ-Gains as tech stocks rebound from sell-off The 11 major S&P 500 sectors: Communication Services up 2.34% Real Estate
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Eikon search string for individual stock moves: STXBZ The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh U.S. stocks jumped on Wednesday as investors took advantage of a three-day sell-off to buy into high-flying tech stocks, a day after the Nasdaq confirmed correction territory. ET, the Dow Jones Industrial Average .DJI was up 1.85% at 28,010.23. The S&P 500 .SPX was up 2.04% at 3,399.76 and the Nasdaq Composite .IXIC was up 2.46% at 11,114.423.
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5311.0
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2020-09-09 00:00:00 UTC
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We're Back! S&P 500 Up Big as Tech Stock Gains Outpace Airline, Cruise Stocks Selloff
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https://www.nasdaq.com/articles/were-back-sp-500-up-big-as-tech-stock-gains-outpace-airline-cruise-stocks-selloff-2020-09
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Whew, that was better. The S&P 500 Index (SNPINDEX: ^GSPC) bounced back bigly on Sept. 9, gaining 67 points, or 2%. The turn back higher breaks a three-day skid that saw tech stocks -- and almost everything else -- edge lower by almost 7% from last Thursday through yesterday.
Just as yesterday's sell-off was broad across every sector, today's move up was widespread. More than 400 of the 505 stocks in the S&P gained today, with the majority of stocks in every sector finishing the day in positive territory. This included the energy sector, which bounced back a little bit today after yesterday's massive sell-off.
Leading the way were the "FAAMG" stocks (Microsoft (NASDAQ: MSFT) was up, while Netflix (NASDAQ: NFLX) was a surprising loser today), with Apple (NASDAQ: AAPL), Amazon.com (NASDAQ: AMZN), and Microsoft up close to 4% or more, with their market cap heft more than offsetting the losses by airline stocks and cruise stocks. American Airlines (NASDAQ: AAL) and Carnival (NYSE: CCL) brought up the rear in those sectors.
Image source: Getty Images.
Stocks are back, but so is volatility
Today's big gains for the S&P surely were cause for a sigh of relief for many investors. However, it's notable that today's gains weren't driven by any big economic news, a deal by congress on an economic aid package for the millions struggling under the coronavirus recession, or any other positive event.
It was, simply put, buyers leading the way, and in a pretty aggressive manner for a no-news day. The biggest takeaway here is that, while a good day is, well, good, it's a continuation of high volatility that had softened over the summer months.
In other words, investors may want to buckle in for a bumpy ride in the weeks ahead. If stocks are back to moving 2% on a no-news day, the mere hint of a whisper of real news could have a big impact on what investors do in the short term.
Tech stocks turning back positive but still have ground to make up
Today was a big move in the "right" direction for the tech giants. Every S&P 500 tech stock with a market cap of $80 billion or more gained value today. In addition to those listed above, that includes giants NVIDIA, up 6.7%, and salesforce.com (NYSE: CRM), up 4%.
But by that same measure, they're all still down over the past five days, and many by double-digits. Apple shares are still off 16%, while Microsoft shares are down the least, off "only" 10.8% from the prior high last week.
Will investors be willing to push technology stocks back past their record levels, or will the volatility turn back down in the days ahead remains to be seen; despite their positive results, many tech stocks are still stretched, with their share prices gains a product of higher valuations, not better financial performance. What we do know is that, for the most part, technology companies have delivered big returns in 2020 because they're the companies underpinning much about the economy that's still working, or providing services and products to the people who are still working.
Tiffany lawyers up after buyout deal falls apart
The dubious title of biggest S&P loser today goes to Tiffany (NYSE: TIF), with shares down 6.4% following word that LVMH is walking away from the negotiating table to buy the luxury retailer.
In response, Tiffany has filed suit against the French luxury brand owner, with Chairman Roger Farah saying they believed that LVMH "will seek to use any available means" to avoid closing the deal on terms it had agreed to previously.
Tiffany is having a tough year, with sales down sharply due to the coronavirus pandemic's impact on in-person retail and the global economy.
Airlines losing altitude, cruise stocks sinking
While tech stocks have spent much of the past week moving lower before today's bounce back, Airline and cruise stocks have been moving in the opposite direction. In addition to American and Carnival's sell-off today, United Airlines (NASDAQ: UAL), Norwegian Cruise Lines, and Southwest Airlines fell more than 3% today, while Delta Air Lines, Alaska Air, and Royal Caribbean shares lost 2% or more.
Over the past five trading days, the group is still up, led by Carnival's 11% in gains. The positive gains over the past week are a product of the same thing that sent their shares falling today: Expectations for a post-COVID travel world.
Today's decline came after news broke late yesterday that AstraZeneca was pausing the phase 3 clinical trial of its COVID-19 vaccine, after a patient suffered a possible adverse reaction. Airlines executives at several airlines also lowered expectations recently, setting the bar for a recovery very low, and expecting it would be choppy going forward.
This marks a stark reversal in attitude for investors, who've grown hopeful over the past month that a combination of better treatments, faster, cheaper tests, and a vaccine more quickly than expected would open up the seas and the skies sooner rather than later. Today's news threw a little cold water on those expectations. It's going to take a lot more progress before the cruise operators can return to any semblance of business as usual.
10 stocks we like better than Apple
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 Apple wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of August 1, 2020
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. Jason Hall owns shares of NVIDIA and Southwest Airlines. The Motley Fool owns shares of and recommends Amazon, Apple, Microsoft, Netflix, NVIDIA, and Salesforce.com. The Motley Fool recommends Alaska Air Group, Carnival, Delta Air Lines, and Southwest Airlines and recommends the following options: long January 2022 $1920 calls on Amazon, short January 2022 $1940 calls on Amazon, long January 2021 $85 calls on Microsoft, and short January 2021 $115 calls on Microsoft. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines (NASDAQ: AAL) and Carnival (NYSE: CCL) brought up the rear in those sectors. In response, Tiffany has filed suit against the French luxury brand owner, with Chairman Roger Farah saying they believed that LVMH "will seek to use any available means" to avoid closing the deal on terms it had agreed to previously. Today's decline came after news broke late yesterday that AstraZeneca was pausing the phase 3 clinical trial of its COVID-19 vaccine, after a patient suffered a possible adverse reaction.
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American Airlines (NASDAQ: AAL) and Carnival (NYSE: CCL) brought up the rear in those sectors. In addition to American and Carnival's sell-off today, United Airlines (NASDAQ: UAL), Norwegian Cruise Lines, and Southwest Airlines fell more than 3% today, while Delta Air Lines, Alaska Air, and Royal Caribbean shares lost 2% or more. The Motley Fool owns shares of and recommends Amazon, Apple, Microsoft, Netflix, NVIDIA, and Salesforce.com.
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American Airlines (NASDAQ: AAL) and Carnival (NYSE: CCL) brought up the rear in those sectors. Leading the way were the "FAAMG" stocks (Microsoft (NASDAQ: MSFT) was up, while Netflix (NASDAQ: NFLX) was a surprising loser today), with Apple (NASDAQ: AAPL), Amazon.com (NASDAQ: AMZN), and Microsoft up close to 4% or more, with their market cap heft more than offsetting the losses by airline stocks and cruise stocks. Will investors be willing to push technology stocks back past their record levels, or will the volatility turn back down in the days ahead remains to be seen; despite their positive results, many tech stocks are still stretched, with their share prices gains a product of higher valuations, not better financial performance.
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American Airlines (NASDAQ: AAL) and Carnival (NYSE: CCL) brought up the rear in those sectors. Will investors be willing to push technology stocks back past their record levels, or will the volatility turn back down in the days ahead remains to be seen; despite their positive results, many tech stocks are still stretched, with their share prices gains a product of higher valuations, not better financial performance. Airlines losing altitude, cruise stocks sinking While tech stocks have spent much of the past week moving lower before today's bounce back, Airline and cruise stocks have been moving in the opposite direction.
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5312.0
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2020-09-09 00:00:00 UTC
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3 Wildly Popular Robinhood Stocks to Buy Now
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https://www.nasdaq.com/articles/3-wildly-popular-robinhood-stocks-to-buy-now-2020-09-09
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Buying shares of popular companies with strong growth prospects has always been a favorite tactic of market participants. Now investors can do so with next to zero commission while utilizing a smart user interface such as the Robinhood App.
Even with the stock market on a roller coaster this year, the platform saw as many as two million new users added in the first quarter of 2020 alone, and it has curated a list of the hottest on-demand stocks its users are buying right now. There are many candidates on Robinhood's top 100 most popular stocks leaderboard that can make investors rich. Today, let's look at just three examples.
Image source: Getty Images.
1. Apple
The second quarter of 2020 was another quarter of record earnings for tech giant Apple (NASDAQ: AAPL). For starters, the company's sales grew by 11% year over year to $59.7 billion. Out of its portfolio mix, software and service revenue grew by 15% to $13.2 billion, led by strong performance in Apple News, Apple TV+, and App Store sales.
The company now has 550 million paid subscribers to its services, an increase of 35 million since Q1 2020. Last year, the company's App Store contributed an estimated $500 billion to global e-commerce.
Strong consumer demand also uplifted Apple's hardware segment, with Mac sales up 22% and MacBook products up over 30% compared to last year. The company's hardware segment accounts for $46.5 billion worth of sales.
Overall, investors should expect Apple to maintain this level of growth in its business thanks to many of its incentives. For example, the company recently rolled out the Apple Card, which would allow costumers to buy Apple devices at 0% interest.
Furthermore, Apple is also solidly profitable with a 38% gross margin and $11.3 billion in quarterly earnings, an 18% improvement from last year. If that wasn't enough, the company also has more than $193 billion in cash on its balance sheet, which is more than enough to offset its $113 billion in long-term debt.
2. American Airlines
Next up on our list is one of the nation's biggest airlines. In June 2020, American Airlines (NASDAQ: AAL) saw a significant rebound to its business as more and more travelers regained confidence in air travel. The partial removal of lockdown measures designed to contain the coronavirus also helped the company's recovery.
In June, American Airlines' revenue per available seat mile (RASM) increased to $0.12 in two of its flight hubs, Dallas and Charlotte. That is almost on par with the $0.1472 RASM the airline recognized last year. The two flight hubs account for nearly 60% of American Airlines' revenue.
During the quarter, the company flew almost twice as much as competing airlines in terms of flight schedules. While the airline burned as much as $100 million in cash per day in April, management has been aggressively cutting costs by eliminating unprofitable routes and reducing its fleet size. In June, American Airlines' cash burn per day went down to $30 million.
By next year, management expects the company will break even in terms of daily cash use. What's more, the company's revenue will likely see a significant rebound as a coronavirus vaccine may be available as early as October, decisively restoring consumer confidence in air travel. Keep in mind that this company generated $10 billion in revenue in the past six months but still has a market cap of just $7 billion.
Image source: Getty Images.
3. Inovio Pharmaceuticals
Speaking of a coronavirus vaccine, Inovio Pharmaceuticals (NASDAQ: INO) has just the right candidate, named INO-4800, in its pipeline. INO-4800 is a DNA vaccine that encodes for a key protein in SARS-CoV-2 that facilitates the virus' entry into host cells. In phase 1 clinical trials, the overwhelming majority of participants who received INO-4800 developed neutralizing antibodies and T-cell responses against the coronavirus.
Neutralizing antibodies are small proteins that recognize a pathogen's specific components and prevent it from invading healthy cells. T-cells recognize virus-infected cells and tell those cells to self-destruct, preventing the virus from spreading throughout the body. Unlike antibodies, which may disappear just weeks after dosage, T-cells can form memories of pathogens for months or years.
The experimental vaccine will start to advance into phase 2 by the end of the year. Although its data looks decent, it is crucial to note Inovio is in a legal battle with its contract manufacturer, with the latter alleging Inovio stole its technology. As a result, the company may not be able to supply 100 million doses of INO-4800 by 2021, as it projected in its Q2 2020 earnings release.
Nonetheless, if the vaccine is successful in clinical studies and the manufacturing dispute resolves, INO-4800 could generate ample revenue. Even at $20 per dose, that equates to $200 million in sales for every 10 million doses (enough for 5 million people). Currently, Inovio only has a market capitalization of $1.65 billion. Investors looking for biotech stocks with a high-risk, high-reward profile may wish to add Inovio to their watch list.
10 stocks we like better than Apple
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 Apple wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of August 1, 2020
Zhiyuan Sun has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In June 2020, American Airlines (NASDAQ: AAL) saw a significant rebound to its business as more and more travelers regained confidence in air travel. Strong consumer demand also uplifted Apple's hardware segment, with Mac sales up 22% and MacBook products up over 30% compared to last year. While the airline burned as much as $100 million in cash per day in April, management has been aggressively cutting costs by eliminating unprofitable routes and reducing its fleet size.
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In June 2020, American Airlines (NASDAQ: AAL) saw a significant rebound to its business as more and more travelers regained confidence in air travel. Buying shares of popular companies with strong growth prospects has always been a favorite tactic of market participants. Out of its portfolio mix, software and service revenue grew by 15% to $13.2 billion, led by strong performance in Apple News, Apple TV+, and App Store sales.
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In June 2020, American Airlines (NASDAQ: AAL) saw a significant rebound to its business as more and more travelers regained confidence in air travel. Even with the stock market on a roller coaster this year, the platform saw as many as two million new users added in the first quarter of 2020 alone, and it has curated a list of the hottest on-demand stocks its users are buying right now. For starters, the company's sales grew by 11% year over year to $59.7 billion.
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In June 2020, American Airlines (NASDAQ: AAL) saw a significant rebound to its business as more and more travelers regained confidence in air travel. For starters, the company's sales grew by 11% year over year to $59.7 billion. Neutralizing antibodies are small proteins that recognize a pathogen's specific components and prevent it from invading healthy cells.
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5313.0
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2020-09-09 00:00:00 UTC
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American Airlines eyes more Treasury loans; unions meet with top Democrats
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https://www.nasdaq.com/articles/american-airlines-eyes-more-treasury-loans-unions-meet-with-top-democrats-2020-09-09
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By Tracy Rucinski and David Shepardson
Sept 9 (Reuters) - American Airlines AAL.O said on Wednesday it could seek a larger loan from the U.S. Treasury Department, while airline union leaders were due to meet with senior congressional Democrats regarding a second round of payroll aid for the sector.
U.S. airlines received $25 billion in payroll grants under the Coronavirus Aid, Relief, and Economic Security (CARES) Act in March and have been lobbying for a six-month extension to protect tens of thousands of jobs that are at risk when the first round expires this month.
The CARES Act also offered airlines another $25 billion in loans. American is taking $4.75 billion of that pot, and its chief financial officer said it could apply for more if other airlines do not take their share.
Southwest Airlines LUV.N, for example, has already said it is not applying for the government loans.
Airlines continue to suffer a drastic downturn in demand due to the coronavirus pandemic, with the largest airlines each burning through around $1 billion a month of cash.
The sector does not expect a meaningful recovery in demand until there is a widely accepted COVID-19 treatment or vaccine, which could stimulate pent-up demand and the need for trained workers.
American has the largest debt load of its competitors and said on Wednesday it is discussing with Boeing Co BA.N deferring the delivery of 18 737 MAX jets.
A proposal from the Republican-led U.S. Senate on Tuesday for additional coronavirus relief did not include new government assistance for U.S. airlines or airports but is considered a starting point for talks with Democrats.
The global race for a coronavirus vaccine suffered a setback on Wednesday when AstraZeneca Plc AZN.L suspended its global trials after an unexplained illness in a participant, and Delta Chief Financial Officer Paul Jacobson warned that any vaccine must be followed by broad vaccinations, a process he said could take between six and 12 months.
Delta CFO warns that COVID-19 vaccinations could take up to a year
United cuts third-quarter capacity, revenue forecasts
U.S. airlines absent from Senate COVID-19 relief proposal, unions plan action
(Reporting by Tracy Rucinski in Chicago and David Shepardson in Washington; additional reporting by Rachit Vats in Bengaluru Editing by Nick Zieminski and Lisa Shumaker)
((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.
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By Tracy Rucinski and David Shepardson Sept 9 (Reuters) - American Airlines AAL.O said on Wednesday it could seek a larger loan from the U.S. Treasury Department, while airline union leaders were due to meet with senior congressional Democrats regarding a second round of payroll aid for the sector. U.S. airlines received $25 billion in payroll grants under the Coronavirus Aid, Relief, and Economic Security (CARES) Act in March and have been lobbying for a six-month extension to protect tens of thousands of jobs that are at risk when the first round expires this month. A proposal from the Republican-led U.S. Senate on Tuesday for additional coronavirus relief did not include new government assistance for U.S. airlines or airports but is considered a starting point for talks with Democrats.
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By Tracy Rucinski and David Shepardson Sept 9 (Reuters) - American Airlines AAL.O said on Wednesday it could seek a larger loan from the U.S. Treasury Department, while airline union leaders were due to meet with senior congressional Democrats regarding a second round of payroll aid for the sector. U.S. airlines received $25 billion in payroll grants under the Coronavirus Aid, Relief, and Economic Security (CARES) Act in March and have been lobbying for a six-month extension to protect tens of thousands of jobs that are at risk when the first round expires this month. Delta CFO warns that COVID-19 vaccinations could take up to a year United cuts third-quarter capacity, revenue forecasts U.S. airlines absent from Senate COVID-19 relief proposal, unions plan action (Reporting by Tracy Rucinski in Chicago and David Shepardson in Washington; additional reporting by Rachit Vats in Bengaluru Editing by Nick Zieminski and Lisa Shumaker) ((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.
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By Tracy Rucinski and David Shepardson Sept 9 (Reuters) - American Airlines AAL.O said on Wednesday it could seek a larger loan from the U.S. Treasury Department, while airline union leaders were due to meet with senior congressional Democrats regarding a second round of payroll aid for the sector. Airlines continue to suffer a drastic downturn in demand due to the coronavirus pandemic, with the largest airlines each burning through around $1 billion a month of cash. Delta CFO warns that COVID-19 vaccinations could take up to a year United cuts third-quarter capacity, revenue forecasts U.S. airlines absent from Senate COVID-19 relief proposal, unions plan action (Reporting by Tracy Rucinski in Chicago and David Shepardson in Washington; additional reporting by Rachit Vats in Bengaluru Editing by Nick Zieminski and Lisa Shumaker) ((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.
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By Tracy Rucinski and David Shepardson Sept 9 (Reuters) - American Airlines AAL.O said on Wednesday it could seek a larger loan from the U.S. Treasury Department, while airline union leaders were due to meet with senior congressional Democrats regarding a second round of payroll aid for the sector. The CARES Act also offered airlines another $25 billion in loans. American is taking $4.75 billion of that pot, and its chief financial officer said it could apply for more if other airlines do not take their share.
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5314.0
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2020-09-08 00:00:00 UTC
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U.S. airlines absent from Senate COVID-19 relief proposal, unions plan action
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https://www.nasdaq.com/articles/u.s.-airlines-absent-from-senate-covid-19-relief-proposal-unions-plan-action-2020-09-08
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By David Shepardson and Tracy Rucinski
WASHINGTON/CHICAGO, Sept 8 (Reuters) - A U.S. Senate Republican coronavirus spending proposal to be introduced on Tuesday does not include new government assistance for U.S. airlines or airports, two aides said, as the sector races to save jobs before October.
More than 35,000 workers at two of the largest U.S. carriers alone - American Airlines AAL.O and United Airlines UAL.O - are set to lose their jobs once an initial $25 billion in payroll support from the government expires this month.
That has fueled a furious push by unions for a six-month extension of the aid, with flight attendants and other aviation workers planning to march outside the U.S. Capitol on Wednesday.
U.S. President Donald Trump has floated the idea of airline aid without congressional action, but officials said last week the administration has yet to settle on an approach.
One possibility under discussion was redirecting unspent funds from the Coronavirus Aid, Relief, and Economic Security (CARES) Act passed in March, people familiar with the matter said, though it was unclear how conditions could be set without going through Congress.
The initial $25 billion airline payroll aid included restrictions on share buybacks and executive compensation and required airlines to protect jobs and pay through September.
The Senate measure, which is expected to be voted on Thursday, is seen as an opening salvo for talks that are expected to intensify once the U.S. House returns from recess next week.
Republicans and Democrats have been jockeying for months over the next phase of coronavirus aid, after passing more than $3 trillion this year. There has been bipartisan support for additional airline aid, even though it did not make it into the latest Senate proposal, which excludes $10 billion in assistance for airports that was part of an earlier Senate bill, the sources said.
Airlines are bracing for a slow recovery from the coronavirus pandemic but say they need trained workers ready to service and fuel any economic rebound.
(Reporting by David Shepardson and Tracy Rucinski; Editing by Richard Chang)
((David.Shepardson@thomsonreuters.com; 2028988324;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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More than 35,000 workers at two of the largest U.S. carriers alone - American Airlines AAL.O and United Airlines UAL.O - are set to lose their jobs once an initial $25 billion in payroll support from the government expires this month. By David Shepardson and Tracy Rucinski WASHINGTON/CHICAGO, Sept 8 (Reuters) - A U.S. Senate Republican coronavirus spending proposal to be introduced on Tuesday does not include new government assistance for U.S. airlines or airports, two aides said, as the sector races to save jobs before October. That has fueled a furious push by unions for a six-month extension of the aid, with flight attendants and other aviation workers planning to march outside the U.S. Capitol on Wednesday.
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More than 35,000 workers at two of the largest U.S. carriers alone - American Airlines AAL.O and United Airlines UAL.O - are set to lose their jobs once an initial $25 billion in payroll support from the government expires this month. By David Shepardson and Tracy Rucinski WASHINGTON/CHICAGO, Sept 8 (Reuters) - A U.S. Senate Republican coronavirus spending proposal to be introduced on Tuesday does not include new government assistance for U.S. airlines or airports, two aides said, as the sector races to save jobs before October. The initial $25 billion airline payroll aid included restrictions on share buybacks and executive compensation and required airlines to protect jobs and pay through September.
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More than 35,000 workers at two of the largest U.S. carriers alone - American Airlines AAL.O and United Airlines UAL.O - are set to lose their jobs once an initial $25 billion in payroll support from the government expires this month. By David Shepardson and Tracy Rucinski WASHINGTON/CHICAGO, Sept 8 (Reuters) - A U.S. Senate Republican coronavirus spending proposal to be introduced on Tuesday does not include new government assistance for U.S. airlines or airports, two aides said, as the sector races to save jobs before October. The initial $25 billion airline payroll aid included restrictions on share buybacks and executive compensation and required airlines to protect jobs and pay through September.
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More than 35,000 workers at two of the largest U.S. carriers alone - American Airlines AAL.O and United Airlines UAL.O - are set to lose their jobs once an initial $25 billion in payroll support from the government expires this month. By David Shepardson and Tracy Rucinski WASHINGTON/CHICAGO, Sept 8 (Reuters) - A U.S. Senate Republican coronavirus spending proposal to be introduced on Tuesday does not include new government assistance for U.S. airlines or airports, two aides said, as the sector races to save jobs before October. That has fueled a furious push by unions for a six-month extension of the aid, with flight attendants and other aviation workers planning to march outside the U.S. Capitol on Wednesday.
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5315.0
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2020-09-05 00:00:00 UTC
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Lands' End Will Survive Retail Chaos
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AAL
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https://www.nasdaq.com/articles/lands-end-will-survive-retail-chaos-2020-09-05
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nan
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nan
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Since the COVID-19 pandemic poses an existential threat to various pockets of the retail industry, investors in this space have expended much effort this year in determining which companies will indeed make it to the other side of the current economic drawdown.
In its fiscal 2020 earnings report released this past week, casual clothing manufacturer Lands' End (NASDAQ: LE) offered evidence that it falls safely in the category of viable companies going forward. The results, issued Sep. 2, revealed that the company bounced back to profitability after a weak first quarter on strong e-commerce sales and COVID-19 related cost control. Lands' End is also investing in tangible opportunities that it can capitalize on once the U.S. economy emerges from its pandemic-constrained crawl.
Image source: Getty Images.
Adaptation and resilience
Lands' End returned to growth over the last three months, as revenue improved by 4.6% over the prior-year quarter, to $312.1 million. Sales advanced 44% sequentially against the first quarter of 2020, which had been heavily affected by the initial wave of the coronavirus. The company earned $0.13 per diluted share during the last three months, eclipsing a loss of $0.09 per share in the second quarter of 2019.
Management had advised investors to expect a year-over-year revenue decline in the mid-to-high single digits in the second quarter, so the firming top line proved a pleasant surprise. The momentum was driven by e-commerce sales, which were projected to rise by mid-single-digits, but ended up surging nearly 24% against the comparable quarter.
As expected, Lands' End's "outfitters" business, which supplies uniforms to businesses and schools, suffered a significant hit -- sales wilted by 43% against the prior-year quarter. This segment has a concentration in the travel and leisure industry -- to illustrate, American Airlines is one of its largest customers. It's almost needless to relay that management expects this business to remain soft through the end of this year.
As for its physical retail channel, the organization reopened all 26 of its stores by the end of August. While these units are generating sales at just 70% of last year's levels, they make up only a fraction of the company's top line: Between the e-commerce and outfitters segments, digital sales account for 96% of total company sales, and stores just 4%.
In addition to enjoying a boost to e-commerce in the pandemic, Lands' End has exhibited a high degree of cost discipline. Gross margin improved by 10 basis points against second quarter 2019 to 43.4%; more impressively, the company's selling and administrative expenses plunged by 530 basis points to 35.7% of revenue. Management attributed this easing of the company's overhead burden to its "strong control of operating expenses and structural costs."
An update on a critical deadline
Earlier this year, investors fretted over a $383 million term loan that comes due in April 2021, given the uncertainty (at the time) around capital markets, as well as uncertainty over how Lands' End would ultimately fare in 2020. As debt markets have remained liquid, and the company has demonstrated its viability, investor angst over the borrowing has dissipated.
Lands' End shared this week that it's received multiple term sheets from interested lenders on the note refinancing. Management disclosed that after the refinancing, the manufacturer will likely end up with $275 million in long-term debt, with the balance of the note existing as a short-term liability within its asset-based lending (ABL) facility. The total availability on the ABL will increase from $188 million to $275 million as part of the transaction. During this week's earnings conference call, CFO Jim Gooch stated that the refinancing was expected to close before the end of the third quarter.
What's next for Lands' End
Management is projecting a slight, low single-digit revenue decline in the back half of 2020, which sets Lands' End up for perhaps another small upside surprise. Given this benign outlook and an imminent note refinancing, it's clear that the organization has turned a corner; in fact, it's looking forward to several revenue opportunities in the near future.
For example, Lands' End has just completed an enhancement of its enterprise resource planning (ERP) system, which will allow it to fulfill current orders placed through Amazon -- a growing channel -- directly from its distribution center. In addition, this fall, Lands' End products will make their debut on the shelves at Kohl's locations. Online orders from Kohl's will also be fulfilled from Lands' End's distribution center following the ERP upgrade.
I purchased Lands' End in late March as a value play, and while it's roughly doubled since then, I intend to continue to hold these shares, as the company is likely to come out of the pandemic with both market share gains and higher profitability.
Given its increasingly solid footing, and its stock resilience -- shares were down 75% for the year in late April, and are now down roughly 21% year to date -- like-minded investors can afford to be patient for the next several quarters.
10 stocks we like better than Lands' End
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 Lands' End wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of August 1, 2020
John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Asit Sharma owns shares of Lands' End. The Motley Fool owns shares of and recommends Amazon and recommends the following options: short January 2022 $1940 calls on Amazon and long January 2022 $1920 calls on Amazon. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Since the COVID-19 pandemic poses an existential threat to various pockets of the retail industry, investors in this space have expended much effort this year in determining which companies will indeed make it to the other side of the current economic drawdown. In its fiscal 2020 earnings report released this past week, casual clothing manufacturer Lands' End (NASDAQ: LE) offered evidence that it falls safely in the category of viable companies going forward. For example, Lands' End has just completed an enhancement of its enterprise resource planning (ERP) system, which will allow it to fulfill current orders placed through Amazon -- a growing channel -- directly from its distribution center.
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As expected, Lands' End's "outfitters" business, which supplies uniforms to businesses and schools, suffered a significant hit -- sales wilted by 43% against the prior-year quarter. While these units are generating sales at just 70% of last year's levels, they make up only a fraction of the company's top line: Between the e-commerce and outfitters segments, digital sales account for 96% of total company sales, and stores just 4%. The Motley Fool owns shares of and recommends Amazon and recommends the following options: short January 2022 $1940 calls on Amazon and long January 2022 $1920 calls on Amazon.
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An update on a critical deadline Earlier this year, investors fretted over a $383 million term loan that comes due in April 2021, given the uncertainty (at the time) around capital markets, as well as uncertainty over how Lands' End would ultimately fare in 2020. What's next for Lands' End Management is projecting a slight, low single-digit revenue decline in the back half of 2020, which sets Lands' End up for perhaps another small upside surprise. I purchased Lands' End in late March as a value play, and while it's roughly doubled since then, I intend to continue to hold these shares, as the company is likely to come out of the pandemic with both market share gains and higher profitability.
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The results, issued Sep. 2, revealed that the company bounced back to profitability after a weak first quarter on strong e-commerce sales and COVID-19 related cost control. Adaptation and resilience Lands' End returned to growth over the last three months, as revenue improved by 4.6% over the prior-year quarter, to $312.1 million. While these units are generating sales at just 70% of last year's levels, they make up only a fraction of the company's top line: Between the e-commerce and outfitters segments, digital sales account for 96% of total company sales, and stores just 4%.
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5316.0
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2020-09-05 00:00:00 UTC
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Should You Buy or Sell Airline Stocks Right Now?
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AAL
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https://www.nasdaq.com/articles/should-you-buy-or-sell-airline-stocks-right-now-2020-09-05
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nan
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nan
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Airline stocks are currently stuck in a holding pattern.
Shares of U.S. airlines have rebounded off their spring COVID-19 lows, but are still down big for the year as the pandemic continues to depress travel demand. The industry has scrambled to cut costs and fly through the turbulence, but at this moment there is a lot more fear surrounding the sector than greed.
Warren Buffett famously advised to be greedy when others are fearful, but then again he joined the stampede for the exits and sold his airline stocks due to the pandemic. So what's an investor to think about the airlines right now?
Here's a look at where things stand with the industry.
Airline data by YCharts.
The case to buy airline stocks now
For all the issues the industry faces today, there hasn't yet been a U.S. airline bankruptcy. That's unusual for the airline business, where historically we've seen Chapter 11 bankruptcy protection filings, and occasional liquidations, whenever the economy went south.
But the industry entered this crisis in far better health than it has been in decades, and carriers have been able to raise billions in new cash to help offset the tens of millions of dollars they're burning through daily. U.S. airlines have raised about $50 billion in debt and equity financing, coupled with a similar amount of government assistance.
The result is an industry that has done a remarkably good job of stabilizing itself in a difficult environment. The airlines will likely report substantial losses through the remainder of 2020, at least, but even the weaker carriers have enough cash and levers to pull to make it well into 2021 before facing liquidity issues.
Image source: Getty Images.
The cost-cutting is not done yet. Three of the nation's largest airlines have announced plans to cut thousands of jobs in October as government assistance dries up. Expect the entire industry to be much more focused coming out of the pandemic, as management teams use the crisis to overhaul their businesses.
With the airline stocks all still down 25% or more for the year, the sector looks like good value assuming the airlines survive the crisis and eventually normalize.
The case to sell airline stocks now
Even if the airlines survive, the business is going to be ugly for some time to come. Traffic bounced off of spring lows as the summer went on, indicating there is some pent-up demand for travel, but according to Transportation Security Administration statistics domestic passenger numbers in August were down 70% year over year.
August was probably the high point. With many large employers still teleworking, business travel is sparse, and vacation demand will die down as schools restart. Expect demand to remain minimal until there is a widely available COVID-19 vaccine, which isn't likely until spring of 2021 at the earliest, and for business travel to remain sluggish even after there is a vaccine.
All told, it will likely be 2022 at the earliest before travel volumes return to pre-pandemic levels. Assuming it will take concrete signs of a recovery to get airline stocks airborne, buying into the sector today likely means watching other parts of the economy take off while the airline stocks remain grounded.
Image source: Getty Images.
The companies will also be badly bruised by the pandemic. American Airlines Group (NASDAQ: AAL), for example, entered the crisis with an industry-high debt load and has only been able to survive because it was able to raise significant amounts of cash. The borrowing spree has left American with more than $1 billion in annual interest payments.
Even when travelers take to the skies again, airlines will be using whatever free cash they generate to rebuild their balance sheets and have little left for shareholders or for growth initiatives.
Should you buy or sell?
I think airlines can survive without bankruptcies, and the stocks are safe to own. But given the risk, they are best limited to a small part of a well-diversified portfolio.
If you are going to buy, it's best to focus on winners instead of just buying a sector exchange-traded fund and gaining exposure to the weak and the strong. Avoid the most beaten-down names and focus on quality companies with the best balance sheets.
Southwest Airlines (NYSE: LUV) is the safest pick among airlines, but Delta Air Lines (NYSE: DAL) and Alaska Air Group (NYSE: ALK) both look like clear survivors, too, as the airlines try to chart a course post-pandemic.
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 August 1, 2020
Lou Whiteman owns shares of Delta Air Lines and Spirit Airlines. The Motley Fool owns shares of Spirit Airlines. The Motley Fool recommends Alaska Air Group, Delta Air Lines, Hawaiian Holdings, JetBlue Airways, and Southwest Airlines. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines Group (NASDAQ: AAL), for example, entered the crisis with an industry-high debt load and has only been able to survive because it was able to raise significant amounts of cash. Warren Buffett famously advised to be greedy when others are fearful, but then again he joined the stampede for the exits and sold his airline stocks due to the pandemic. But the industry entered this crisis in far better health than it has been in decades, and carriers have been able to raise billions in new cash to help offset the tens of millions of dollars they're burning through daily.
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American Airlines Group (NASDAQ: AAL), for example, entered the crisis with an industry-high debt load and has only been able to survive because it was able to raise significant amounts of cash. Southwest Airlines (NYSE: LUV) is the safest pick among airlines, but Delta Air Lines (NYSE: DAL) and Alaska Air Group (NYSE: ALK) both look like clear survivors, too, as the airlines try to chart a course post-pandemic. See the 10 stocks *Stock Advisor returns as of August 1, 2020 Lou Whiteman owns shares of Delta Air Lines and Spirit Airlines.
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American Airlines Group (NASDAQ: AAL), for example, entered the crisis with an industry-high debt load and has only been able to survive because it was able to raise significant amounts of cash. The case to buy airline stocks now For all the issues the industry faces today, there hasn't yet been a U.S. airline bankruptcy. Assuming it will take concrete signs of a recovery to get airline stocks airborne, buying into the sector today likely means watching other parts of the economy take off while the airline stocks remain grounded.
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American Airlines Group (NASDAQ: AAL), for example, entered the crisis with an industry-high debt load and has only been able to survive because it was able to raise significant amounts of cash. The case to buy airline stocks now For all the issues the industry faces today, there hasn't yet been a U.S. airline bankruptcy. That's right -- they think these 10 stocks are even better buys.
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5317.0
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2020-09-04 00:00:00 UTC
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Kudlow expects Trump administration to unveil aid for airlines in weeks
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AAL
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https://www.nasdaq.com/articles/kudlow-expects-trump-administration-to-unveil-aid-for-airlines-in-weeks-2020-09-04
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nan
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nan
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Updates with details
WASHINGTON, Sept 4 (Reuters) - White House economic adviser Larry Kudlow on Friday said he thinks the Trump administration will in a matter of weeks unveil additional aid for U.S. airlines, which have been dealt a blow by a coronavirus pandemic that has grounded most flights.
"If they need additional assistance, we stand ready to work with them to hammer out additional packages," Kudlow told Bloomberg TV in an interview.
Airlines received $25 billion in U.S. government stimulus funds in March meant to cover payrolls and protect jobs through September. Congress also approved another $25 billion in loans for airlines but much of the money has not been tapped.
As bailout money runs out without a travel recovery in sight, airlines and unions have lobbied Washington for another $25 billion. But talks have stalled as Congress has struggled to reach agreement on a broader coronavirus assistance package, despite significant bilateral support for the airline package.
Administration and airline officials say the Trump administration has considered various ways to aid airlines without congressional action but have yet to settle on an approach.
Airlines for America, the main lobby for U.S. airlines, does not expect air travel to return to pre-pandemic levels until 2024 and is hoping for a second round of government aid to help the industry, Chief Executive Nicholas Calio said on Thursday.
American Airlines AAL.O said last week its workforce would shrink by 40,000, including 19,000 involuntary cuts, in October unless the government extends aid for airline employee payrolls.
United said on Wednesday it is preparing to furlough 16,370 workers when federal aid expires on Oct. 1 if the government does not extend assistance.
(Reporting by David Shepardson, Daphne Psaledakis and Tim Ahmann; Editing by Jonathan Oatis and Howard Goller)
((Daphne.Psaledakis@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines AAL.O said last week its workforce would shrink by 40,000, including 19,000 involuntary cuts, in October unless the government extends aid for airline employee payrolls. Updates with details WASHINGTON, Sept 4 (Reuters) - White House economic adviser Larry Kudlow on Friday said he thinks the Trump administration will in a matter of weeks unveil additional aid for U.S. airlines, which have been dealt a blow by a coronavirus pandemic that has grounded most flights. Airlines received $25 billion in U.S. government stimulus funds in March meant to cover payrolls and protect jobs through September.
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American Airlines AAL.O said last week its workforce would shrink by 40,000, including 19,000 involuntary cuts, in October unless the government extends aid for airline employee payrolls. "If they need additional assistance, we stand ready to work with them to hammer out additional packages," Kudlow told Bloomberg TV in an interview. But talks have stalled as Congress has struggled to reach agreement on a broader coronavirus assistance package, despite significant bilateral support for the airline package.
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American Airlines AAL.O said last week its workforce would shrink by 40,000, including 19,000 involuntary cuts, in October unless the government extends aid for airline employee payrolls. Updates with details WASHINGTON, Sept 4 (Reuters) - White House economic adviser Larry Kudlow on Friday said he thinks the Trump administration will in a matter of weeks unveil additional aid for U.S. airlines, which have been dealt a blow by a coronavirus pandemic that has grounded most flights. Airlines for America, the main lobby for U.S. airlines, does not expect air travel to return to pre-pandemic levels until 2024 and is hoping for a second round of government aid to help the industry, Chief Executive Nicholas Calio said on Thursday.
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American Airlines AAL.O said last week its workforce would shrink by 40,000, including 19,000 involuntary cuts, in October unless the government extends aid for airline employee payrolls. Updates with details WASHINGTON, Sept 4 (Reuters) - White House economic adviser Larry Kudlow on Friday said he thinks the Trump administration will in a matter of weeks unveil additional aid for U.S. airlines, which have been dealt a blow by a coronavirus pandemic that has grounded most flights. "If they need additional assistance, we stand ready to work with them to hammer out additional packages," Kudlow told Bloomberg TV in an interview.
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5318.0
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2020-09-04 00:00:00 UTC
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Kudlow: Trump administration to unveil aid for airlines in matter of weeks
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AAL
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https://www.nasdaq.com/articles/kudlow%3A-trump-administration-to-unveil-aid-for-airlines-in-matter-of-weeks-2020-09-04
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nan
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nan
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Repeating to additional clients
WASHINGTON, Sept 4 (Reuters) - White House economic adviser Larry Kudlow on Friday said that he thinks the Trump administration will in a matter of weeks unveil aid for U.S. airlines, which have been dealt a blow as the coronavirus outbreak grounded most flights.
"If they need additional assistance, we stand ready to work with them to hammer out additional packages," Kudlow said in an interview with Bloomberg TV.
Airlines for America, the main lobby for U.S. airlines, does not expect air travel to return to pre-pandemic levels until 2024 and is hoping for a second round of government aid to help the industry, Chief Executive Nicholas Calio said on Thursday.
U.S. passenger airlines are still collectively losing more than $5 billion a month as 30% of planes remain parked. Passenger travel demand is down about 70% and, on average, planes that are flying are half-full.
Last week, American Airlines said its workforce would shrink by 40,000, including 19,000 involuntary cuts, in October unless the government extends aid for airline employee payrolls.
United said on Thursday it will need to cut 2,850 pilot jobs between Oct. 1 and Nov. 30 if the government does not extend assistance.
(Reporting by Daphne Psaledakis and Tim Ahmann; Editing by Franklin Paul and Jonathan Oatis)
((Daphne.Psaledakis@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.
|
Repeating to additional clients WASHINGTON, Sept 4 (Reuters) - White House economic adviser Larry Kudlow on Friday said that he thinks the Trump administration will in a matter of weeks unveil aid for U.S. airlines, which have been dealt a blow as the coronavirus outbreak grounded most flights. Airlines for America, the main lobby for U.S. airlines, does not expect air travel to return to pre-pandemic levels until 2024 and is hoping for a second round of government aid to help the industry, Chief Executive Nicholas Calio said on Thursday. U.S. passenger airlines are still collectively losing more than $5 billion a month as 30% of planes remain parked.
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"If they need additional assistance, we stand ready to work with them to hammer out additional packages," Kudlow said in an interview with Bloomberg TV. Airlines for America, the main lobby for U.S. airlines, does not expect air travel to return to pre-pandemic levels until 2024 and is hoping for a second round of government aid to help the industry, Chief Executive Nicholas Calio said on Thursday. Last week, American Airlines said its workforce would shrink by 40,000, including 19,000 involuntary cuts, in October unless the government extends aid for airline employee payrolls.
|
Repeating to additional clients WASHINGTON, Sept 4 (Reuters) - White House economic adviser Larry Kudlow on Friday said that he thinks the Trump administration will in a matter of weeks unveil aid for U.S. airlines, which have been dealt a blow as the coronavirus outbreak grounded most flights. Airlines for America, the main lobby for U.S. airlines, does not expect air travel to return to pre-pandemic levels until 2024 and is hoping for a second round of government aid to help the industry, Chief Executive Nicholas Calio said on Thursday. Last week, American Airlines said its workforce would shrink by 40,000, including 19,000 involuntary cuts, in October unless the government extends aid for airline employee payrolls.
|
Repeating to additional clients WASHINGTON, Sept 4 (Reuters) - White House economic adviser Larry Kudlow on Friday said that he thinks the Trump administration will in a matter of weeks unveil aid for U.S. airlines, which have been dealt a blow as the coronavirus outbreak grounded most flights. "If they need additional assistance, we stand ready to work with them to hammer out additional packages," Kudlow said in an interview with Bloomberg TV. Airlines for America, the main lobby for U.S. airlines, does not expect air travel to return to pre-pandemic levels until 2024 and is hoping for a second round of government aid to help the industry, Chief Executive Nicholas Calio said on Thursday.
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5319.0
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2020-09-04 00:00:00 UTC
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Leaner, Meaner Model Will Push American Airlines Higher
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AAL
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https://www.nasdaq.com/articles/leaner-meaner-model-will-push-american-airlines-higher-2020-09-04
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
When I last wrote about American Airlines (NASDAQ:AAL) stock, I voiced my concerns regarding the strategy the company employed in response to the novel coronavirus pandemic. Almost all the major carriers had opted to streamline operations. However, the company decided to soldier on through operating low-income yielding hubs despite widespread criticism.
Source: GagliardiPhotography / Shutterstock.com
But it looks like management has decided to change course. The company has announced that it will halt service to 15 smaller airports effective Oct. 7 and has also agreed to cut 19,000 jobs. Both of these initiatives are necessary yet painful belt-tightening initiatives.
American is also looking extensively at cutting its debt, a welcome move that will clean up its bloated balance sheet. It does not have sizable non-aircraft debt maturities until June 2022, but liabilities remain very high. On a positive note, cash burn rates are on their way down as well, a net positive for AAL stock.
Shares are trading at 0.16x trailing price-to-sales, quite reasonable even after accounting for weak demand. However, the decision to invest in the stock will remain your own. AAL came into this crisis with flawed fundamentals. But recent events indicate management wants to rectify this situation and come out of this crisis stronger. That’s why the stock popped on the day AAL revealed it was streamlining its operations.
10 Blue-Chip Stocks Ideal for Any Investor
The fact that AAL is trying to stem the tide deserves brownie points for sure. Any initiatives the company takes to reduce costs while waiting for demand to return will pay dividends. With management now firmly focused on reducing operating and capex costs, expect AAL stock to start making up lost ground.
What Will Drive AAL Stock Higher?
First, let’s look at the positives. In the second quarter, American managed to reduce cash burn to $55 million from $70 million. Although break-even cash burn rates seem a bit far fetched at this stage, American has said it plans to reduce cash burn in the forthcoming quarters aggressively.
One of the main drivers of this reduced cash burn will be the leaner, more streamlined operating model the company looks to employ. Under this strategy, the company cut its active fleet by around 150 aircraft. That is expected to result in $15 billion of operating and capex savings. Reduction of the fleet will also lead to lower maintenance costs and will also save on fuel and environmental expenses.
While we are on that subject, oil prices are still off their 2019 peaks, a favorable tailwind, considering 22% of total expenses represent fuel costs. Production cuts are a thorny issue, with OPEC+ members at loggerheads regarding oil supply during this crisis. The U.S. government has had to intervene and play peacemaker among the members to ensure supply remains limited.
But as the year rolls on, we will see an easing of production cuts from all members involved. That will lead to prices dropping further, considering demand is most likely to remain sluggish this year, providing more cushion to the company.
Problem Areas
Now that we have gotten the positives out of the way, let’s look at some trouble spots for the airline: fundamental strength and the balance sheet.
Even before the pandemic, the company wasn’t whirring on all cylinders. Many of its key operating metrics like EPS, cash flow from operations, and long-term liabilities were going the wrong way. The drop in EPS is even more worrisome since outstanding shares dropped to 444 million shares in 2019 from 734 million shares in 2014. On a positive note, revenues did increase over the last five years before the pandemic struck.
Source: Chart by Faizan Farooque, data from filings.
Now, looking at the balance sheet, the one thing that stands out is the debt position of the company. At the end of the latest quarter, when adding pension liabilities and capital leases, aggregate long term debt stood at $41.68 billion. In comparison, cash was just shy of $10 billion – not a healthy position by any means.
Right Steps
In the second-quarterearnings call CEO Doug Parker promised cash burn would come down substantially in the forthcoming quarters. I believe that will happen because of two things.
Firstly, TSA data shows that passenger numbers are increasing with each passing day. Most of these are vacationers, which constitute the most significant chunk of AAL’s customers. Unlike Delta Air Lines (NYSE:DAL), AAL does not rely heavily on business travelers, and so its recovery is unlikely to be as sluggish as other airlines in the sector that depend on corporate travel.
Secondly, American Airlines has also taken recent steps to streamline its operations. It will halt services to 15 small centers, and roughly 19,000 employees will be let go as the terms attached to federal aid run out. Although these are painful initiatives, they are necessary considering the state that the airline sector is in at the moment.
Providing Color to the Numbers
Daniel Cravens, managing director of investor relations at American Airlines, recently discussed moves made by the airline. He was asked what prompted the recent change in strategy. After all, it wasn’t that long ago when Chief Revenue Officer Vasu Raja was articulating a very aggressive response to the pandemic.
In an email, Cravens acknowledged to me that American felt a need to streamline operations, given demand had not rebounded. Regarding the decisions made, he said, “Unfortunately, given that demand hasn’t rebounded like we all thought it would back in March (when the CARES Act was passed), we have had to make adjustments to our entire network, which regrettably includes furloughs and reduced flight service. Of course, this is a decision that no one wanted to make, but it is necessary given the tepid recovery.”
He added that the recently announced partnerships with Alaska and JetBlue (NASDAQ:JBLU) would allow for a “compelling schedule” for American’s customers on the East and West coasts during this time.
In a previous exchange with Cravens, he laid out some vital information regarding cash burn and long-term debt that readers will find interesting. He said the company calculates burn rates differently than its counterparts. Long story short, if we were to use Delta’s methodology, burn rates will be closer to what Delta guided for Q3.
Also, when speaking about debt, Cravens outlined that approximately $20 billion of it prepayable with no prepayment penalty. The conversation reinforced the company’s plans to deleverage as soon as demand returns. This is a prudent strategy that should put shareholders at somewhat ease.
The Final Word
Airlines are going through a tough time at the moment. Understandably, due to the nature of the crisis, we have to take the issues the sector is facing into account when analyzing American Airlines.
Since I last wrote about AAL stock, management has taken sensible decisions to scale down and mitigate against losses. With an uncertain future, that seems the most appropriate way to go at this point.
AAL is a less risky stock than a month ago, but there are still a lot of ifs and buts regarding its future. The company does, however, deserve brownie points for moving ahead and making some difficult decisions. That will undoubtedly instill confidence in the markets and its shareholders.
On the date of publication, Faizan Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Faizan Farooque is a contributing author for InvestorPlace.com and numerous other financial sites. He has several years of experience in analyzing the stock market and was a former data journalist at S&P Global Market Intelligence. His passion is to help the average investor make more informed decisions regarding their portfolio.
The post Leaner, Meaner Model Will Push American Airlines Higher appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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With management now firmly focused on reducing operating and capex costs, expect AAL stock to start making up lost ground. InvestorPlace - Stock Market News, Stock Advice & Trading Tips When I last wrote about American Airlines (NASDAQ:AAL) stock, I voiced my concerns regarding the strategy the company employed in response to the novel coronavirus pandemic. On a positive note, cash burn rates are on their way down as well, a net positive for AAL stock.
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With management now firmly focused on reducing operating and capex costs, expect AAL stock to start making up lost ground. InvestorPlace - Stock Market News, Stock Advice & Trading Tips When I last wrote about American Airlines (NASDAQ:AAL) stock, I voiced my concerns regarding the strategy the company employed in response to the novel coronavirus pandemic. On a positive note, cash burn rates are on their way down as well, a net positive for AAL stock.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips When I last wrote about American Airlines (NASDAQ:AAL) stock, I voiced my concerns regarding the strategy the company employed in response to the novel coronavirus pandemic. On a positive note, cash burn rates are on their way down as well, a net positive for AAL stock. AAL came into this crisis with flawed fundamentals.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips When I last wrote about American Airlines (NASDAQ:AAL) stock, I voiced my concerns regarding the strategy the company employed in response to the novel coronavirus pandemic. On a positive note, cash burn rates are on their way down as well, a net positive for AAL stock. AAL came into this crisis with flawed fundamentals.
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5320.0
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2020-09-04 00:00:00 UTC
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U.S. job growth seen slowing in August, unemployment rate falling below 10%
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AAL
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https://www.nasdaq.com/articles/u.s.-job-growth-seen-slowing-in-august-unemployment-rate-falling-below-10-2020-09-04
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nan
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nan
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By Lucia Mutikani
WASHINGTON, Sept 4 (Reuters) - U.S. job growth likely slowed further in August as financial assistance from the government ran out, threatening the economy's recovery from the COVID-19 recession.
The Labor Department's closely watched employment report on Friday would come as companies from transportation to manufacturing industries announce layoffs or furloughs. It could add pressure on the White House and Congress to restart stalled negotiations for another fiscal package, and will likely become political ammunition for both Democrats and Republicans with just two months to go until the presidential election.
Programs to help businesses pay wages have either lapsed or are on the verge of ending. A $600 weekly unemployment supplement expired in July. Economists credited government largesse for the sharp rebound in economic activity after it nearly ground to a halt following the shuttering of businesses in mid-March to control the spread of the coronavirus.
"The pandemic has really torn our economic and social fabric," said Sung Won Sohn, a finance and economics professor at Loyola Marymount University in Los Angeles. "The ending of the fiscal stimulus has not helped the situation."
According to a Reuters survey of economists nonfarm payrolls likely rose by 1.4 million jobs last month, with some of the anticipated gains coming from hiring for the 2020 Census. Employment increased 1.763 million in July and its growth peaked at 4.791 million in June.
Friday's report is one of just two monthly labor market scorecards left on the calendar before the Nov. 3 presidential election.
President Donald Trump, who is trailing in polls behind former Vice President Joe Biden, the Democratic Party nominee, is likely to tout the continued job gains as a sign that the economy is improving after suffering its biggest shock in at least 73 years in the second quarter.
But employment would still be about 11.5 million below its pre-pandemic level. Most of the job gains have been workers being recalled from furloughs or temporary layoffs. Though new COVID-19 infections have subsided after a broad resurgence through the summer, many hot spots remain.
United Airlines UAL.O said on Wednesday it was preparing to furlough 16,370 workers on Oct. 1. American Airlines AAL.O has announced its workforce would shrink by 40,000, including 19,000 involuntary cuts. Ford Motor Co F.N said it was targeting 1,400 U.S. salaried jobs for elimination by year end. Mass transit rail operators are also eying furloughs.
A report this week from the Federal Reserve based on information collected from the U.S. central bank's contacts on or before Aug. 24 showed an increase in employment. The Fed, however, noted that "some districts also reported slowing job growth and increased hiring volatility, particularly in service industries, with rising instances of furloughed workers being laid off permanently as demand remained soft."
"Restaurants and other businesses in the services industry are not going to continue calling workers back when demand is not there," said Ryan Sweet, a senior economist at Moody's Analytics in Westchester, Pennsylvania. "We need the stimulus like weeks ago."
SPENDING IN JEOPARDY
The unemployment rate is forecast to have dropped to 9.8% in August from 10.2% in July, according to the Reuters survey. That would leave it just under the 10% peak shortly after the end of the 2007-09 Great Recession.
But the measurement of the jobless rate has been biased downward by people misclassifying themselves as being "employed but absent from work." At least 29.2 million were receiving unemployment benefits in mid-August.
Lydia Boussour, a senior economist with Oxford Economics in New York, estimated that payroll gains in line with expectations would leave one out of two laid-off workers still unemployed, with an increased risk of a prolonged high unemployment spell.
"The fact that the employment is settling into a trend of slow, grinding improvement is a worrisome sign for the broader recovery," said Boussour. "The combination of slow employment progress and poor health conditions along with the absence of fiscal aid risk jeopardizing the consumer spending rebound in the coming months."
Slowing job growth will likely have a limited impact on gross domestic product in the third quarter, which economists estimate could rebound at an annualized rate of as high as 30% after sinking at a historic 31.7% pace in the April-June quarter. But it will hurt fourth quarter GDP, with consumer spending taking a hit.
Though wages surged at the depth of the pandemic, that was because the job losses were concentrated in the low wage services industries like restaurants and bars.
Average hourly earnings are forecast unchanged in August after rising 0.2% in July. That would lower the annual increase in wage to 4.5% from 4.8% in July.
The service sector is likely to account for most the anticipated gains in August. Manufacturing is expected to have added another 50,000 jobs. Government payrolls were likely boosted by the hiring of at least 250,000 workers for the population count, though some it could be offset a decline in education employment at states and local governments.
"We look for education-related employment to be particularly weak as the back-to-school season will be abnormal in many areas," said Daniel Silver, economist at JPMorgan in New York.
(Reporting by Lucia Mutikani Editing by Chizu Nomiyama)
((Lucia.Mutikani@thomsonreuters.com; 1 202 843 6281; Reuters Messaging: lucia.mutikani.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines AAL.O has announced its workforce would shrink by 40,000, including 19,000 involuntary cuts. By Lucia Mutikani WASHINGTON, Sept 4 (Reuters) - U.S. job growth likely slowed further in August as financial assistance from the government ran out, threatening the economy's recovery from the COVID-19 recession. The Fed, however, noted that "some districts also reported slowing job growth and increased hiring volatility, particularly in service industries, with rising instances of furloughed workers being laid off permanently as demand remained soft."
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American Airlines AAL.O has announced its workforce would shrink by 40,000, including 19,000 involuntary cuts. Employment increased 1.763 million in July and its growth peaked at 4.791 million in June. The Fed, however, noted that "some districts also reported slowing job growth and increased hiring volatility, particularly in service industries, with rising instances of furloughed workers being laid off permanently as demand remained soft."
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American Airlines AAL.O has announced its workforce would shrink by 40,000, including 19,000 involuntary cuts. According to a Reuters survey of economists nonfarm payrolls likely rose by 1.4 million jobs last month, with some of the anticipated gains coming from hiring for the 2020 Census. The Fed, however, noted that "some districts also reported slowing job growth and increased hiring volatility, particularly in service industries, with rising instances of furloughed workers being laid off permanently as demand remained soft."
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American Airlines AAL.O has announced its workforce would shrink by 40,000, including 19,000 involuntary cuts. According to a Reuters survey of economists nonfarm payrolls likely rose by 1.4 million jobs last month, with some of the anticipated gains coming from hiring for the 2020 Census. Employment increased 1.763 million in July and its growth peaked at 4.791 million in June.
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5321.0
|
2020-09-04 00:00:00 UTC
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U.S. job growth seen slowing in August, unemployment rate falling below 10%
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AAL
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https://www.nasdaq.com/articles/u.s.-job-growth-seen-slowing-in-august-unemployment-rate-falling-below-10-2020-09-04-0
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nan
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nan
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By Lucia Mutikani
WASHINGTON, Sept 4 (Reuters) - U.S. job growth likely slowed further in August as financial assistance from the government ran out, threatening the economy's recovery from the COVID-19 recession.
The Labor Department's closely watched employment report on Friday would come as companies from transportation to manufacturing industries announce layoffs or furloughs. It could add pressure on the White House and Congress to restart stalled negotiations for another fiscal package, and will likely become political ammunition for both Democrats and Republicans with just two months to go until the presidential election.
Programs to help businesses pay wages have either lapsed or are on the verge of ending. A $600 weekly unemployment supplement expired in July. Economists credited government largesse for the sharp rebound in economic activity after it nearly ground to a halt following the shuttering of businesses in mid-March to control the spread of the coronavirus.
"The pandemic has really torn our economic and social fabric," said Sung Won Sohn, a finance and economics professor at Loyola Marymount University in Los Angeles. "The ending of the fiscal stimulus has not helped the situation."
According to a Reuters survey of economists nonfarm payrolls likely rose by 1.4 million jobs last month, with some of the anticipated gains coming from hiring for the 2020 Census. Employment increased 1.763 million in July and its growth peaked at 4.791 million in June.
Friday's report is one of just two monthly labor market scorecards left on the calendar before the Nov. 3 presidential election.
President Donald Trump, who is trailing in polls behind former Vice President Joe Biden, the Democratic Party nominee, is likely to tout the continued job gains as a sign that the economy is improving after suffering its biggest shock in at least 73 years in the second quarter.
But employment would still be about 11.5 million below its pre-pandemic level. Most of the job gains have been workers being recalled from furloughs or temporary layoffs. Though new COVID-19 infections have subsided after a broad resurgence through the summer, many hot spots remain.
United Airlines UAL.O said on Wednesday it was preparing to furlough 16,370 workers on Oct. 1. American Airlines AAL.O has announced its workforce would shrink by 40,000, including 19,000 involuntary cuts. Ford Motor Co F.N said it was targeting 1,400 U.S. salaried jobs for elimination by year end. Mass transit rail operators are also eying furloughs.
A report this week from the Federal Reserve based on information collected from the U.S. central bank's contacts on or before Aug. 24 showed an increase in employment. The Fed, however, noted that "some districts also reported slowing job growth and increased hiring volatility, particularly in service industries, with rising instances of furloughed workers being laid off permanently as demand remained soft."
"Restaurants and other businesses in the services industry are not going to continue calling workers back when demand is not there," said Ryan Sweet, a senior economist at Moody's Analytics in Westchester, Pennsylvania. "We need the stimulus like weeks ago."
SPENDING IN JEOPARDY
The unemployment rate is forecast to have dropped to 9.8% in August from 10.2% in July, according to the Reuters survey. That would leave it just under the 10% peak shortly after the end of the 2007-09 Great Recession.
But the measurement of the jobless rate has been biased downward by people misclassifying themselves as being "employed but absent from work." At least 29.2 million were receiving unemployment benefits in mid-August.
Lydia Boussour, a senior economist with Oxford Economics in New York, estimated that payroll gains in line with expectations would leave one out of two laid-off workers still unemployed, with an increased risk of a prolonged high unemployment spell.
"The fact that the employment is settling into a trend of slow, grinding improvement is a worrisome sign for the broader recovery," said Boussour. "The combination of slow employment progress and poor health conditions along with the absence of fiscal aid risk jeopardizing the consumer spending rebound in the coming months."
Slowing job growth will likely have a limited impact on gross domestic product in the third quarter, which economists estimate could rebound at an annualized rate of as high as 30% after sinking at a historic 31.7% pace in the April-June quarter. But it will hurt fourth quarter GDP, with consumer spending taking a hit.
Though wages surged at the depth of the pandemic, that was because the job losses were concentrated in the low wage services industries like restaurants and bars.
Average hourly earnings are forecast unchanged in August after rising 0.2% in July. That would lower the annual increase in wage to 4.5% from 4.8% in July.
The service sector is likely to account for most the anticipated gains in August. Manufacturing is expected to have added another 50,000 jobs. Government payrolls were likely boosted by the hiring of at least 250,000 workers for the population count, though some it could be offset a decline in education employment at states and local governments.
"We look for education-related employment to be particularly weak as the back-to-school season will be abnormal in many areas," said Daniel Silver, economist at JPMorgan in New York.
(Reporting by Lucia Mutikani Editing by Chizu Nomiyama)
((Lucia.Mutikani@thomsonreuters.com; 1 202 843 6281; Reuters Messaging: lucia.mutikani.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
American Airlines AAL.O has announced its workforce would shrink by 40,000, including 19,000 involuntary cuts. By Lucia Mutikani WASHINGTON, Sept 4 (Reuters) - U.S. job growth likely slowed further in August as financial assistance from the government ran out, threatening the economy's recovery from the COVID-19 recession. The Fed, however, noted that "some districts also reported slowing job growth and increased hiring volatility, particularly in service industries, with rising instances of furloughed workers being laid off permanently as demand remained soft."
|
American Airlines AAL.O has announced its workforce would shrink by 40,000, including 19,000 involuntary cuts. Employment increased 1.763 million in July and its growth peaked at 4.791 million in June. The Fed, however, noted that "some districts also reported slowing job growth and increased hiring volatility, particularly in service industries, with rising instances of furloughed workers being laid off permanently as demand remained soft."
|
American Airlines AAL.O has announced its workforce would shrink by 40,000, including 19,000 involuntary cuts. According to a Reuters survey of economists nonfarm payrolls likely rose by 1.4 million jobs last month, with some of the anticipated gains coming from hiring for the 2020 Census. The Fed, however, noted that "some districts also reported slowing job growth and increased hiring volatility, particularly in service industries, with rising instances of furloughed workers being laid off permanently as demand remained soft."
|
American Airlines AAL.O has announced its workforce would shrink by 40,000, including 19,000 involuntary cuts. According to a Reuters survey of economists nonfarm payrolls likely rose by 1.4 million jobs last month, with some of the anticipated gains coming from hiring for the 2020 Census. Employment increased 1.763 million in July and its growth peaked at 4.791 million in June.
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5322.0
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2020-09-04 00:00:00 UTC
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Pre-Market Most Active for Sep 4, 2020 : AAPL, SQQQ, NIO, KCAC, TSLA, QQQ, AAL, CCL, TQQQ, NOK, NCLH, PAA
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AAL
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https://www.nasdaq.com/articles/pre-market-most-active-for-sep-4-2020-%3A-aapl-sqqq-nio-kcac-tsla-qqq-aal-ccl-tqqq-nok-nclh
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nan
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nan
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The NASDAQ 100 Pre-Market Indicator is down -89.6 to 11,681.77. The total Pre-Market volume is currently 22,606,544 shares traded.
The following are the most active stocks for the pre-market session:
Apple Inc. (AAPL) is -2.83 at $118.05, with 3,828,614 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Mar 2021. The consensus EPS forecast is $0.92. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
ProShares UltraPro Short QQQ (SQQQ) is +0.72 at $23.40, with 2,913,038 shares traded. This represents a 19.69% increase from its 52 Week Low.
NIO Inc. (NIO) is -0.83 at $17.87, with 2,558,330 shares traded. NIO's current last sale is 127.64% of the target price of $14.
Kensington Capital Acquisition Corp. (KCAC) is +3.31 at $22.05, with 2,019,250 shares traded., following a 52-week high recorded in prior regular session.
Tesla, Inc. (TSLA) is -17.9 at $389.10, with 2,003,214 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2020. The consensus EPS forecast is $0.14. TSLA's current last sale is 143.05% of the target price of $272.
Invesco QQQ Trust, Series 1 (QQQ) is -3.18 at $284.23, with 1,431,491 shares traded. This represents a 72.33% increase from its 52 Week Low.
American Airlines Group, Inc. (AAL) is +0.08 at $13.44, with 1,052,412 shares traded. AAL's current last sale is 134.4% of the target price of $10.
Carnival Corporation (CCL) is +0.62 at $18.20, with 1,036,770 shares traded. CCL's current last sale is 113.75% of the target price of $16.
ProShares UltraPro QQQ (TQQQ) is -4.7799 at $142.95, with 668,268 shares traded. This represents a 342.98% increase from its 52 Week Low.
Nokia Corporation (NOK) is unchanged at $4.53, with 458,320 shares traded. As reported by Zacks, the current mean recommendation for NOK is in the "buy range".
Norwegian Cruise Line Holdings Ltd. (NCLH) is +0.61 at $18.24, with 444,053 shares traded. NCLH's current last sale is 114% of the target price of $16.
Plains All American Pipeline, L.P. (PAA) is unchanged at $7.04, with 431,774 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2020. The consensus EPS forecast is $0.31. As reported by Zacks, the current mean recommendation for PAA is in the "buy range".
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines Group, Inc. (AAL) is +0.08 at $13.44, with 1,052,412 shares traded. AAL's current last sale is 134.4% of the target price of $10. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Mar 2021.
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Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2020. American Airlines Group, Inc. (AAL) is +0.08 at $13.44, with 1,052,412 shares traded. AAL's current last sale is 134.4% of the target price of $10.
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Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2020. American Airlines Group, Inc. (AAL) is +0.08 at $13.44, with 1,052,412 shares traded. AAL's current last sale is 134.4% of the target price of $10.
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American Airlines Group, Inc. (AAL) is +0.08 at $13.44, with 1,052,412 shares traded. AAL's current last sale is 134.4% of the target price of $10. The NASDAQ 100 Pre-Market Indicator is down -89.6 to 11,681.77.
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5323.0
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2020-09-03 00:00:00 UTC
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Why Airline Shares Climbed Higher on Thursday Morning
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AAL
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https://www.nasdaq.com/articles/why-airline-shares-climbed-higher-on-thursday-morning-2020-09-03
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nan
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nan
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What happened
Airline shares jumped higher at the open Thursday on a hopeful sign of a travel recovery. United Airlines Holdings (NASDAQ: UAL) led the way, jumping 7.8%, with JetBlue Airways (NASDAQ: JBLU) gaining 7.3% and American Airlines Group (NASDAQ: AAL) and Spirit Airlines (NYSE: SAVE) each up more than 6%.
The stocks gave back much of those gains as the morning went on, but each was still in the green as of 11 a.m. EDT, at a time when the broader market was down more than 2%.
So what
Airlines have been hit hard by the COVID-19 pandemic, which has caused travel demand to all but evaporate. Industry watchers are expecting demand to remain sluggish through the early months of 2021 at the least, as it seems unlikely travelers will return until there is a vaccine.
Image source: Getty Images.
In this environment, investors have tended to react to any glimmer of optimism that suggests a recovery might happen sooner than feared. They got such a glimmer on Thursday as Carnival (NYSE: CCL) (NYSE: CUK) said its Costa Cruises brand will restart operations this weekend.
The cruise resumptions are only for Europe, and not the U.S., but given that the cruise industry has been hit just as hard as airlines by the pandemic any effort to normalize is a hopeful sign that we've entered a new phase in the recovery.
Spirit and American both operate major hubs in south Florida that are gateways for cruise passengers, and JetBlue also has substantial exposure to Florida and the Caribbean region. United also has a large leisure business, and that stock is likely also still feeling the impact of the airline announcing decisive actions to cut costs and preserve cash to ride out the downturn.
Airline shares also got support on Thursday from the advisory firm that runs the U.S. Global Jets ETF (NYSEMKT: JETS) exchange-traded fund. In an investor update the advisors noted that daily Transportation Security Administration screenings hit 807,000 last Sunday, saying that further jumps "could spur a second big wave of airline equity buying."
Now what
All travel reopenings are a step in the right direction, but investors should be careful not to get ahead of themselves. There is nothing to suggest anything but a multi-year downturn for the industry, and even when traffic begins to normalize the airlines will have billions in added debt on their balance sheets that will need to be worked down over time.
For now, airlines have become trading proxies for broader sentiment on the outlook for an end to the pandemic. The sector tends to trade up on good news, and down on bad news, more on the headlines than on the fundamentals of individual companies.
For long-term investors, it is best to assume a slow turnaround and try to block out the noise. I believe it is safe to invest in airlines, but would recommend focusing on the strongest airlines and limiting the ownership to a small percentage of a diversified portfolio.
10 stocks we like better than Carnival
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Lou Whiteman owns shares of Spirit Airlines. The Motley Fool owns shares of Spirit Airlines. The Motley Fool recommends Carnival and 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.
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United Airlines Holdings (NASDAQ: UAL) led the way, jumping 7.8%, with JetBlue Airways (NASDAQ: JBLU) gaining 7.3% and American Airlines Group (NASDAQ: AAL) and Spirit Airlines (NYSE: SAVE) each up more than 6%. United also has a large leisure business, and that stock is likely also still feeling the impact of the airline announcing decisive actions to cut costs and preserve cash to ride out the downturn. In an investor update the advisors noted that daily Transportation Security Administration screenings hit 807,000 last Sunday, saying that further jumps "could spur a second big wave of airline equity buying."
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United Airlines Holdings (NASDAQ: UAL) led the way, jumping 7.8%, with JetBlue Airways (NASDAQ: JBLU) gaining 7.3% and American Airlines Group (NASDAQ: AAL) and Spirit Airlines (NYSE: SAVE) each up more than 6%. The Motley Fool owns shares of Spirit Airlines. The Motley Fool recommends Carnival and JetBlue Airways.
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United Airlines Holdings (NASDAQ: UAL) led the way, jumping 7.8%, with JetBlue Airways (NASDAQ: JBLU) gaining 7.3% and American Airlines Group (NASDAQ: AAL) and Spirit Airlines (NYSE: SAVE) each up more than 6%. The cruise resumptions are only for Europe, and not the U.S., but given that the cruise industry has been hit just as hard as airlines by the pandemic any effort to normalize is a hopeful sign that we've entered a new phase in the recovery. See the 10 stocks *Stock Advisor returns as of August 1, 2020 Lou Whiteman owns shares of Spirit Airlines.
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United Airlines Holdings (NASDAQ: UAL) led the way, jumping 7.8%, with JetBlue Airways (NASDAQ: JBLU) gaining 7.3% and American Airlines Group (NASDAQ: AAL) and Spirit Airlines (NYSE: SAVE) each up more than 6%. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. That's right -- they think these 10 stocks are even better buys.
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5324.0
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2020-09-03 00:00:00 UTC
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Noteworthy Thursday Option Activity: MCD, SNPS, AAL
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AAL
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https://www.nasdaq.com/articles/noteworthy-thursday-option-activity%3A-mcd-snps-aal-2020-09-03
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nan
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nan
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Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in McDonald's Corp (Symbol: MCD), where a total of 19,598 contracts have traded so far, representing approximately 2.0 million underlying shares. That amounts to about 71.7% of MCD's average daily trading volume over the past month of 2.7 million shares. Particularly high volume was seen for the $210 strike put option expiring September 04, 2020, with 5,398 contracts trading so far today, representing approximately 539,800 underlying shares of MCD. Below is a chart showing MCD's trailing twelve month trading history, with the $210 strike highlighted in orange:
Synopsys Inc (Symbol: SNPS) saw options trading volume of 3,894 contracts, representing approximately 389,400 underlying shares or approximately 44.8% of SNPS's average daily trading volume over the past month, of 870,110 shares. Especially high volume was seen for the $250 strike call option expiring March 19, 2021, with 1,920 contracts trading so far today, representing approximately 192,000 underlying shares of SNPS. Below is a chart showing SNPS's trailing twelve month trading history, with the $250 strike highlighted in orange:
And American Airlines Group Inc (Symbol: AAL) saw options trading volume of 307,219 contracts, representing approximately 30.7 million underlying shares or approximately 43.7% of AAL's average daily trading volume over the past month, of 70.3 million shares. Particularly high volume was seen for the $14 strike call option expiring September 04, 2020, with 54,907 contracts trading so far today, representing approximately 5.5 million underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $14 strike highlighted in orange:
For the various different available expirations for MCD options, SNPS 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.
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Particularly high volume was seen for the $14 strike call option expiring September 04, 2020, with 54,907 contracts trading so far today, representing approximately 5.5 million underlying shares of AAL. Below is a chart showing SNPS's trailing twelve month trading history, with the $250 strike highlighted in orange: And American Airlines Group Inc (Symbol: AAL) saw options trading volume of 307,219 contracts, representing approximately 30.7 million underlying shares or approximately 43.7% of AAL's average daily trading volume over the past month, of 70.3 million shares. Below is a chart showing AAL's trailing twelve month trading history, with the $14 strike highlighted in orange: For the various different available expirations for MCD options, SNPS options, or AAL options, visit StockOptionsChannel.com.
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Below is a chart showing SNPS's trailing twelve month trading history, with the $250 strike highlighted in orange: And American Airlines Group Inc (Symbol: AAL) saw options trading volume of 307,219 contracts, representing approximately 30.7 million underlying shares or approximately 43.7% of AAL's average daily trading volume over the past month, of 70.3 million shares. Particularly high volume was seen for the $14 strike call option expiring September 04, 2020, with 54,907 contracts trading so far today, representing approximately 5.5 million underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $14 strike highlighted in orange: For the various different available expirations for MCD options, SNPS options, or AAL options, visit StockOptionsChannel.com.
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Below is a chart showing SNPS's trailing twelve month trading history, with the $250 strike highlighted in orange: And American Airlines Group Inc (Symbol: AAL) saw options trading volume of 307,219 contracts, representing approximately 30.7 million underlying shares or approximately 43.7% of AAL's average daily trading volume over the past month, of 70.3 million shares. Particularly high volume was seen for the $14 strike call option expiring September 04, 2020, with 54,907 contracts trading so far today, representing approximately 5.5 million underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $14 strike highlighted in orange: For the various different available expirations for MCD options, SNPS options, or AAL options, visit StockOptionsChannel.com.
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Below is a chart showing SNPS's trailing twelve month trading history, with the $250 strike highlighted in orange: And American Airlines Group Inc (Symbol: AAL) saw options trading volume of 307,219 contracts, representing approximately 30.7 million underlying shares or approximately 43.7% of AAL's average daily trading volume over the past month, of 70.3 million shares. Particularly high volume was seen for the $14 strike call option expiring September 04, 2020, with 54,907 contracts trading so far today, representing approximately 5.5 million underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $14 strike highlighted in orange: For the various different available expirations for MCD options, SNPS options, or AAL options, visit StockOptionsChannel.com.
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5325.0
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2020-09-03 00:00:00 UTC
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Airlines urge UK, U.S. to start London-New York passenger testing trial
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AAL
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https://www.nasdaq.com/articles/airlines-urge-uk-u.s.-to-start-london-new-york-passenger-testing-trial-2020-09-03
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nan
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nan
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By David Shepardson
WASHINGTON, Sept 3 (Reuters) - Major airlines want the U.S. and British governments to launch a passenger testing trial for the coronavirus for flights between London and New York to pave the way for a resumption of more international travel.
In a letter to government transportation officials seen by Reuters, the chief executives of Airlines for America, Airlines UK, Heathrow Airport and Virgin Atlantic Airways said both governments should "establish passenger testing solutions in air travel.
"We believe that in the immediate absence of a vaccine, testing of passengers in aviation provides the best and most effective frontline defense."
They urged the governments to establish a testing trial between New York and London by month's end "to gather real world evidence and data."
Sharon Pinkerton, senior vice president at Airlines for America, which represents American Airlines Co AAL.O, Delta Air Lines DAL.N, United Airlines UAL.O and others, told reporters on Thursday the industry wanted a pilot program to help boost international travel.
U.S. international travel has fallen by 87% during the coronavirus pandemic, which has battered the airline industry.
"One of the key steps to recovery is setting up an international pilot program between the U.S. and either Europe, Canada, somewhere in the Pacific," she said, saying that could help eliminate some of the international quarantines now in place.
The U.S. Transportation Department said it "stands ready to support the safe resumption of international flights between the U.S. and Europe. Conversations are ongoing between the federal government, international partners, and industry stakeholders on these matters."
A UK government representative declined to comment on the proposal.
In March, U.S. President Donald Trump barred most non-U.S. citizens who had been in the UK recently from entering the United States - restrictions also imposed on travelers in the European Union and China.
Americans can travel to the UK but have been required since spring to spend two weeks in quarantine on arrival.
(Reporting by David Shepardson; Editing by Peter Cooney)
((David.Shepardson@thomsonreuters.com; 2028988324;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Sharon Pinkerton, senior vice president at Airlines for America, which represents American Airlines Co AAL.O, Delta Air Lines DAL.N, United Airlines UAL.O and others, told reporters on Thursday the industry wanted a pilot program to help boost international travel. By David Shepardson WASHINGTON, Sept 3 (Reuters) - Major airlines want the U.S. and British governments to launch a passenger testing trial for the coronavirus for flights between London and New York to pave the way for a resumption of more international travel. They urged the governments to establish a testing trial between New York and London by month's end "to gather real world evidence and data."
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Sharon Pinkerton, senior vice president at Airlines for America, which represents American Airlines Co AAL.O, Delta Air Lines DAL.N, United Airlines UAL.O and others, told reporters on Thursday the industry wanted a pilot program to help boost international travel. By David Shepardson WASHINGTON, Sept 3 (Reuters) - Major airlines want the U.S. and British governments to launch a passenger testing trial for the coronavirus for flights between London and New York to pave the way for a resumption of more international travel. In a letter to government transportation officials seen by Reuters, the chief executives of Airlines for America, Airlines UK, Heathrow Airport and Virgin Atlantic Airways said both governments should "establish passenger testing solutions in air travel.
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Sharon Pinkerton, senior vice president at Airlines for America, which represents American Airlines Co AAL.O, Delta Air Lines DAL.N, United Airlines UAL.O and others, told reporters on Thursday the industry wanted a pilot program to help boost international travel. By David Shepardson WASHINGTON, Sept 3 (Reuters) - Major airlines want the U.S. and British governments to launch a passenger testing trial for the coronavirus for flights between London and New York to pave the way for a resumption of more international travel. In a letter to government transportation officials seen by Reuters, the chief executives of Airlines for America, Airlines UK, Heathrow Airport and Virgin Atlantic Airways said both governments should "establish passenger testing solutions in air travel.
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Sharon Pinkerton, senior vice president at Airlines for America, which represents American Airlines Co AAL.O, Delta Air Lines DAL.N, United Airlines UAL.O and others, told reporters on Thursday the industry wanted a pilot program to help boost international travel. By David Shepardson WASHINGTON, Sept 3 (Reuters) - Major airlines want the U.S. and British governments to launch a passenger testing trial for the coronavirus for flights between London and New York to pave the way for a resumption of more international travel. "We believe that in the immediate absence of a vaccine, testing of passengers in aviation provides the best and most effective frontline defense."
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5326.0
|
2020-09-03 00:00:00 UTC
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U.S. airlines isolated in bid to scrap change fees forever
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AAL
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https://www.nasdaq.com/articles/u.s.-airlines-isolated-in-bid-to-scrap-change-fees-forever-2020-09-03
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nan
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nan
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By Tracy Rucinski and Laurence Frost
CHICAGO/PARIS, Sept 3 (Reuters) - A radical bid to revive air travel demand by permanently sacrificing billions of dollars in fees to change tickets has left U.S. airlines isolated, as foreign rivals fear the tactic would undermine the higher fares paid by premium travellers.
The COVID-19 crisis has weakened one of the core elements of the airline playbook: price many fares attractively low, then charge for ticket changes. And meanwhile charge a hefty premium to those wanting more flexibility: typically business passengers.
"For the fee model to work, you have to have a passenger to nickel-and-dime," said John Zhang, professor of marketing at the University of Pennsylvania's Wharton School. Airlines may soon "walk back other fees as well," he added.
Citi data shows U.S. carriers last year earned $2.8 billion or 1.1% of revenue from cancellations and change fees.
American Airlines AAL.O, Delta Air Lines DAL.N and United Airlines UAL.O have all permanently axed the charges on domestic travel in recent days, followed by Alaska Airlines.
"It's a revenue loss, but the bet is that this is going to win over customers," said ICF consultant Carlos Ozores.
The move comes as U.S. and European passenger traffic remains more than 80% below 2019 levels, July data from global industry body IATA shows, with Asia-Pacific down 72%.
While airlines globally have suspended change fees during the pandemic, those outside the U.S. are resisting making the concessions permanent.
Lufthansa LHAG.DE has announced a waiver until year-end, while Air France-KLM AIR.PA has set no date for a resumption of fees and says it is unlikely to make them permanent.
Low-cost carriers EasyJet EZJ.L and Ryanair RYA.I also said there were no plans for lasting fee changes.
Analysts say restoring fees could prove near-impossible through the weak northern-hemisphere winter - and will only get tougher as consumers increasingly take new terms for granted.
But much could depend on an expected wave of industry consolidation, reducing competition in some markets as weaker airlines shrink or fold, Citi analyst Mark Manduca said.
"Once that happens we'll be in a better place to assess the bargaining power between airline and customer," he said, adding that surviving airlines that emerge fewer and stronger may swiftly end any "free-lunch mentality".
Australia's Qantas Airways Ltd QAN.AX dismissed suggestions that temporary concessions could stay.
Axing fees would undermine the value to a corporate customer of paying more upfront for flexibility, Qantas Chief Executive Alan Joyce told the CAPA Australia Pacific Aviation Summit.
"If every airfare is going to be flexible, your revenue management system I think fundamentally breaks down," Joyce said, backed by Qatar Airways counterpart Akbar al-Baker.
Some observers also question the eye-catching permanency of the U.S. fee waivers, predicting that airlines will find a way to bring them back.
"It's almost impossible they won't do that once demand is higher, only it might be a 'transfer' fee instead of a 'change' fee," said Zhang. "This isn't a forever kind of thing."
(Reporting by Tracy Rucinski and Laurence Frost; additional reporting by Jamie Freed in Sydney; editing by Tim Hepher and Barbara Lewis)
((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.
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American Airlines AAL.O, Delta Air Lines DAL.N and United Airlines UAL.O have all permanently axed the charges on domestic travel in recent days, followed by Alaska Airlines. The move comes as U.S. and European passenger traffic remains more than 80% below 2019 levels, July data from global industry body IATA shows, with Asia-Pacific down 72%. But much could depend on an expected wave of industry consolidation, reducing competition in some markets as weaker airlines shrink or fold, Citi analyst Mark Manduca said.
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American Airlines AAL.O, Delta Air Lines DAL.N and United Airlines UAL.O have all permanently axed the charges on domestic travel in recent days, followed by Alaska Airlines. By Tracy Rucinski and Laurence Frost CHICAGO/PARIS, Sept 3 (Reuters) - A radical bid to revive air travel demand by permanently sacrificing billions of dollars in fees to change tickets has left U.S. airlines isolated, as foreign rivals fear the tactic would undermine the higher fares paid by premium travellers. Citi data shows U.S. carriers last year earned $2.8 billion or 1.1% of revenue from cancellations and change fees.
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American Airlines AAL.O, Delta Air Lines DAL.N and United Airlines UAL.O have all permanently axed the charges on domestic travel in recent days, followed by Alaska Airlines. By Tracy Rucinski and Laurence Frost CHICAGO/PARIS, Sept 3 (Reuters) - A radical bid to revive air travel demand by permanently sacrificing billions of dollars in fees to change tickets has left U.S. airlines isolated, as foreign rivals fear the tactic would undermine the higher fares paid by premium travellers. While airlines globally have suspended change fees during the pandemic, those outside the U.S. are resisting making the concessions permanent.
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American Airlines AAL.O, Delta Air Lines DAL.N and United Airlines UAL.O have all permanently axed the charges on domestic travel in recent days, followed by Alaska Airlines. By Tracy Rucinski and Laurence Frost CHICAGO/PARIS, Sept 3 (Reuters) - A radical bid to revive air travel demand by permanently sacrificing billions of dollars in fees to change tickets has left U.S. airlines isolated, as foreign rivals fear the tactic would undermine the higher fares paid by premium travellers. Citi data shows U.S. carriers last year earned $2.8 billion or 1.1% of revenue from cancellations and change fees.
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5327.0
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2020-09-02 00:00:00 UTC
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United to Cut More Than 16,000 Jobs Due to COVID-19 Travel Slowdown
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AAL
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https://www.nasdaq.com/articles/united-to-cut-more-than-16000-jobs-due-to-covid-19-travel-slowdown-2020-09-02
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nan
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nan
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United Airlines Holdings (NASDAQ: UAL) told employees Wednesday it expects to furlough more than 16,000 workers as soon as next month as a government program that provided payroll support comes to an end.
The COVID-19 pandemic has caused travel demand to dry up, leading airlines to cut their schedules and look for ways to reduce costs. But to date, there has been no layoffs thanks to the CARES Act, which provided the industry with $25 billion in payroll assistance in return for a moratorium on involuntary job cuts through Sept. 30.
Image source: United Airlines.
There has been some talk in Washington about extending that support, but with the deadline fast approaching and the prospects for further assistance unclear, airlines are taking steps to cut their workforces.
United had previously said it would furlough up to 2,850 pilots, but the latest figure is the most detailed information we have on how much United intends to shrink due to a pandemic-related falloff in travel demand. The involuntary cuts are on top of about 7,000 United employees who have opted to take a voluntary separation package and about 20,000 who are on temporary leave.
In addition to the pilot cuts, United's plans involve cutting 6,920 flight attendants, 2,010 mechanics, 2,260 airport workers, and 1,400 management jobs. United has a total of about 90,000 employees.
United is not alone in shrinking its workforce. American Airlines Group (NASDAQ: AAL) said last week it would cut about 40,000 jobs, including 19,000 involuntary furloughs, due to the pandemic, and Delta Air Lines (NYSE: DAL) will need to cut almost 2,000 pilots.
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 August 1, 2020
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.
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American Airlines Group (NASDAQ: AAL) said last week it would cut about 40,000 jobs, including 19,000 involuntary furloughs, due to the pandemic, and Delta Air Lines (NYSE: DAL) will need to cut almost 2,000 pilots. United Airlines Holdings (NASDAQ: UAL) told employees Wednesday it expects to furlough more than 16,000 workers as soon as next month as a government program that provided payroll support comes to an end. But to date, there has been no layoffs thanks to the CARES Act, which provided the industry with $25 billion in payroll assistance in return for a moratorium on involuntary job cuts through Sept. 30.
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American Airlines Group (NASDAQ: AAL) said last week it would cut about 40,000 jobs, including 19,000 involuntary furloughs, due to the pandemic, and Delta Air Lines (NYSE: DAL) will need to cut almost 2,000 pilots. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. The Motley Fool recommends Delta Air Lines.
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American Airlines Group (NASDAQ: AAL) said last week it would cut about 40,000 jobs, including 19,000 involuntary furloughs, due to the pandemic, and Delta Air Lines (NYSE: DAL) will need to cut almost 2,000 pilots. United Airlines Holdings (NASDAQ: UAL) told employees Wednesday it expects to furlough more than 16,000 workers as soon as next month as a government program that provided payroll support comes to an end. 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.
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American Airlines Group (NASDAQ: AAL) said last week it would cut about 40,000 jobs, including 19,000 involuntary furloughs, due to the pandemic, and Delta Air Lines (NYSE: DAL) will need to cut almost 2,000 pilots. United has a total of about 90,000 employees. See the 10 stocks *Stock Advisor returns as of August 1, 2020 Lou Whiteman owns shares of Delta Air Lines.
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5328.0
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2020-09-02 00:00:00 UTC
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United Airlines to cut 16,370 jobs as the pandemic rages
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AAL
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https://www.nasdaq.com/articles/united-airlines-to-cut-16370-jobs-as-the-pandemic-rages-2020-09-02-0
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nan
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nan
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By Tracy Rucinski
CHICAGO, Sept 2 (Reuters) - United Airlines UAL.Ois preparing to furlough 16,370 workers when federal aid expires on Oct. 1 as the coronavirus pandemic continues to devastate the airline industry, it said on Wednesday.
Chicago-based United had over 90,000 employees before the pandemic brought the industry to a near standstill in March. It warned in July that 36,000 jobs were at risk of involuntary furloughs as demand remained weak.
Some 7,400 employees have opted to take early retirement or departure packages and the company is working through several other voluntary temporary leave programs to further reduce the number of furloughs, United officials said.
The leaves would give the company flexibility to call back staff once travel returns, they said.
Airlines received $25 billion in U.S. government stimulus funds in March meant to cover payrolls and protect jobs through September, when the industry had hoped for a rebound.
As bailout money runs out without a travel recovery in sight, airlines and unions have lobbied Washington for another $25 billion but talks have stalled as Congress has struggled to reach agreement on a broader coronavirus assistance package.
U.S. passenger airlines are still collectively losing more than $5 billion a month as 30% of planes remain parked. Passenger travel demand is down about 70% and, on average, planes that are flying are half-full.
United's schedule for September is 63% smaller than a year ago.
United's cuts will affect around 2,850 pilots, 6,920 flight attendants, 2,010 mechanics and 1,400 management and administrative positions, among others, though negotiations continue with pilots to reduce the final number.
Rival American Airlines AAL.O last week said it would lay off 19,000 workers without federal aid. Including voluntary departures or leaves, its 140,000 pre-pandemic workforce will shrink by 30%.
Delta Air Lines DAL.N plans to lay off nearly 2,000 pilots without wage concessions, but has not said how many jobs for workers including flight attendants and mechanics are at risk.
President Donald Trump has said his administration would help U.S. airlines but has not given any details.
Congress also approved another $25 billion in loans for airlines under the first stimulus package, but not all of them are tapping the funds.
(Reporting by Tracy Rucinski in Chicago Editing by Matthew Lewis and Richard Chang)
((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.
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Rival American Airlines AAL.O last week said it would lay off 19,000 workers without federal aid. Some 7,400 employees have opted to take early retirement or departure packages and the company is working through several other voluntary temporary leave programs to further reduce the number of furloughs, United officials said. Airlines received $25 billion in U.S. government stimulus funds in March meant to cover payrolls and protect jobs through September, when the industry had hoped for a rebound.
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Rival American Airlines AAL.O last week said it would lay off 19,000 workers without federal aid. By Tracy Rucinski CHICAGO, Sept 2 (Reuters) - United Airlines UAL.Ois preparing to furlough 16,370 workers when federal aid expires on Oct. 1 as the coronavirus pandemic continues to devastate the airline industry, it said on Wednesday. Including voluntary departures or leaves, its 140,000 pre-pandemic workforce will shrink by 30%.
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Rival American Airlines AAL.O last week said it would lay off 19,000 workers without federal aid. By Tracy Rucinski CHICAGO, Sept 2 (Reuters) - United Airlines UAL.Ois preparing to furlough 16,370 workers when federal aid expires on Oct. 1 as the coronavirus pandemic continues to devastate the airline industry, it said on Wednesday. Some 7,400 employees have opted to take early retirement or departure packages and the company is working through several other voluntary temporary leave programs to further reduce the number of furloughs, United officials said.
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Rival American Airlines AAL.O last week said it would lay off 19,000 workers without federal aid. By Tracy Rucinski CHICAGO, Sept 2 (Reuters) - United Airlines UAL.Ois preparing to furlough 16,370 workers when federal aid expires on Oct. 1 as the coronavirus pandemic continues to devastate the airline industry, it said on Wednesday. Some 7,400 employees have opted to take early retirement or departure packages and the company is working through several other voluntary temporary leave programs to further reduce the number of furloughs, United officials said.
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5329.0
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2020-09-02 00:00:00 UTC
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Why Airline Shares Soared Higher in August
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AAL
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https://www.nasdaq.com/articles/why-airline-shares-soared-higher-in-august-2020-09-02
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nan
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nan
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What happened
It's been a tough year for the airline industry, with the COVID-19 pandemic decimating travel demand and causing carriers to scramble to cut costs. Airline stocks were hit hard early in the crisis, and in the months since have been moving up and down based on developments in the fight to put COVID-19 behind us.
August brought a wave of mostly optimistic headlines about the effort to find a COVID-19 vaccine as well as some positive talk from Washington about additional financial support for the airlines, and the stocks moved higher as a result.
Leading the way for the month was Delta Air Lines (NYSE: DAL), up 23.5% according to data provided by S&P Global Market Intelligence. Southwest Airlines (NYSE: LUV) and American Airlines Group (NASDAQ: AAL) were up 21.7% and 17.4%, respectively.
Airline data by YCharts
So what
The U.S. airline industry saw second-quarter revenue decline by nearly 80% from a year prior, and the traffic is unlikely to come back until there is a COVID-19 vaccine. Airline stocks gained in August on headlines concerning the development of a new quick COVID-19 test that could help reassure uncertain flyers, as well as milestones in vaccine development that suggest we could have a resolution sooner than initially feared.
Image source: Getty Images.
In the meantime, there are some indications coming out of Washington that lawmakers are open to including the airlines in a second round of COVID-19 stimulus if it means avoiding layoffs. The airlines are bleeding cash during the pandemic, and any additional financial assistance provided by the government would lengthen their runways before they face liquidity issues.
The airlines also figure to benefit from a loosening of international travel restrictions, though even with government approval, few are flying internationally at this time.
Now what
August was a good month, but the stocks are still down between 30% and 55% year to date. Which seems appropriate, given the challenges the industry still faces.
A vaccine will arrive eventually, and when it does, I am optimistic travel will begin to return. But in the meantime, expect the industry to get smaller. American has warned it will have to cut 40,000 jobs this fall if there is no additional government assistance, and Delta said it will have to let go of up to 1,941 pilots. Southwest is hopeful of avoiding layoffs, but only because 25% of its workforce has agreed to take extended leave or buyouts.
For investors looking to take advantage of an eventual recovery, be warned you are likely in for a long wait. Southwest and Delta are among the safer airline stocks for those interested in buying in, while American has debt issues that make it riskier to own at this time.
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 August 1, 2020
Lou Whiteman 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.
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Southwest Airlines (NYSE: LUV) and American Airlines Group (NASDAQ: AAL) were up 21.7% and 17.4%, respectively. What happened It's been a tough year for the airline industry, with the COVID-19 pandemic decimating travel demand and causing carriers to scramble to cut costs. August brought a wave of mostly optimistic headlines about the effort to find a COVID-19 vaccine as well as some positive talk from Washington about additional financial support for the airlines, and the stocks moved higher as a result.
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Southwest Airlines (NYSE: LUV) and American Airlines Group (NASDAQ: AAL) were up 21.7% and 17.4%, respectively. Leading the way for the month was Delta Air Lines (NYSE: DAL), up 23.5% according to data provided by S&P Global Market Intelligence. The Motley Fool recommends Delta Air Lines and Southwest Airlines.
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Southwest Airlines (NYSE: LUV) and American Airlines Group (NASDAQ: AAL) were up 21.7% and 17.4%, respectively. Airline data by YCharts So what The U.S. airline industry saw second-quarter revenue decline by nearly 80% from a year prior, and the traffic is unlikely to come back until there is a COVID-19 vaccine. Southwest and Delta are among the safer airline stocks for those interested in buying in, while American has debt issues that make it riskier to own at this time.
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Southwest Airlines (NYSE: LUV) and American Airlines Group (NASDAQ: AAL) were up 21.7% and 17.4%, respectively. Southwest and Delta are among the safer airline stocks for those interested in buying in, while American has debt issues that make it riskier to own at this time. See the 10 stocks *Stock Advisor returns as of August 1, 2020 Lou Whiteman owns shares of Delta Air Lines.
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5330.0
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2020-09-02 00:00:00 UTC
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United Airlines to cut 16,370 jobs as the pandemic rages
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AAL
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https://www.nasdaq.com/articles/united-airlines-to-cut-16370-jobs-as-the-pandemic-rages-2020-09-02
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nan
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nan
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By Tracy Rucinski
CHICAGO, Sept 2 (Reuters) - United Airlines UAL.O said on Wednesday it is preparing to furlough 16,370 workers on Oct. 1 as the coronavirus pandemic continues to devastate the airline industry.
Chicago-based United had over 90,000 employees before the pandemic brought the industry to a near standstill in March and had warned in July that 36,000 jobs were at risk of involuntary furloughs as demand remains weak.
It reduced the final number of forced cuts thanks to demand for voluntary departures or temporary leaves.
Airlines received $25 billion in U.S. government stimulus funds in March meant to cover payrolls and protect jobs through September, when the industry had hoped for a rebound.
As bailout money runs out without a travel recovery in sight, airlines and unions have lobbied Washington for another $25 billion but talks have stalled as Congress has struggled to reach agreement on a broader coronavirus assistance package.
U.S. passenger airlines are still collectively losing more than $5 billion a month as 30% of planes remain parked. Passenger travel demand is down about 70% and, on average, planes that are flying are half-full.
United's schedule for September is 63% smaller than a year ago.
Among different work groups, its job cuts will affect around 2,850 pilots, 6,920 flight attendants, 2,010 mechanics and 1,400 management and administrative positions, among others, though negotiations continue with pilots to reduce the final number.
Rival American Airlines AAL.O last week said it will lay off 19,000 workers without federal aid. Including voluntary departures or leaves, its 140,000 pre-pandemic workforce will shrink by 30%.
Delta Air Lines DAL.N plans to lay off nearly 2,000 pilots without wage concessions, but has not yet said how many jobs for workers including flight attendants and mechanics are at risk.
President Donald Trump has said his administration would help U.S. airlines but has not given any details.
Congress also approved another $25 billion in loans for airlines under the first stimulus package, but not all of them are tapping the funds.
(Reporting by Tracy Rucinski in Chicago Editing by Matthew Lewis)
((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.
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Rival American Airlines AAL.O last week said it will lay off 19,000 workers without federal aid. Chicago-based United had over 90,000 employees before the pandemic brought the industry to a near standstill in March and had warned in July that 36,000 jobs were at risk of involuntary furloughs as demand remains weak. Airlines received $25 billion in U.S. government stimulus funds in March meant to cover payrolls and protect jobs through September, when the industry had hoped for a rebound.
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Rival American Airlines AAL.O last week said it will lay off 19,000 workers without federal aid. By Tracy Rucinski CHICAGO, Sept 2 (Reuters) - United Airlines UAL.O said on Wednesday it is preparing to furlough 16,370 workers on Oct. 1 as the coronavirus pandemic continues to devastate the airline industry. It reduced the final number of forced cuts thanks to demand for voluntary departures or temporary leaves.
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Rival American Airlines AAL.O last week said it will lay off 19,000 workers without federal aid. By Tracy Rucinski CHICAGO, Sept 2 (Reuters) - United Airlines UAL.O said on Wednesday it is preparing to furlough 16,370 workers on Oct. 1 as the coronavirus pandemic continues to devastate the airline industry. Airlines received $25 billion in U.S. government stimulus funds in March meant to cover payrolls and protect jobs through September, when the industry had hoped for a rebound.
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Rival American Airlines AAL.O last week said it will lay off 19,000 workers without federal aid. By Tracy Rucinski CHICAGO, Sept 2 (Reuters) - United Airlines UAL.O said on Wednesday it is preparing to furlough 16,370 workers on Oct. 1 as the coronavirus pandemic continues to devastate the airline industry. It reduced the final number of forced cuts thanks to demand for voluntary departures or temporary leaves.
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5331.0
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2020-09-02 00:00:00 UTC
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Buy Alert: American Airlines Stock Is Headed Higher
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AAL
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https://www.nasdaq.com/articles/buy-alert%3A-american-airlines-stock-is-headed-higher-2020-09-02
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nan
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nan
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COVID-19 has undoubtedly decimated the airline industry due to border closures, safety concerns, high unemployment levels, and business austerity. Indeed, one of the nation's biggest airlines, American Airlines Group (NASDAQ: AAL), saw its stock fall by as much as 48% over the last twelve months, while the S&P 500 gained 20%.
What's more, pundits are now saying that global air travel may not recover until 2024. However, one key reason may cause the sector to regain its passenger volume much sooner than expected, and American Airlines could be among the best placed to benefit from an industry-wide rebound. Let us take a look.
Image source: Getty Images.
The worst seems to be over
During the height of the pandemic in April, when fatality rates were at their highest, American Airlines' fleet operated with as little as 15% capacity, and generated just $0.018 in revenue per available seat mile (RASM). Fortunately, that was the nadir of the company's operations. American Airlines' cash burn has since narrowed from $100 million per day in April, to $56 million per day through May, to $30 million per day in June.
Simultaneously, the company's commercial capacity improved to 45% and 64% in May and June, respectively. With decreasing infection rates in the U.S. as of August 30, states may probably decide to lift lockdown measures for good and accelerate reopening the economy, further boosting consumers' confidence in air travel. Moreover, recent data indicates that there have been few to no cases of SARS-CoV-2 transmitting onboard aircraft, primarily due to airliners' efforts to screen passengers before boarding, enforce mask rules, and install robust air filtration systems.
Air travel can rebound as early as this year
With the help of biotech companies, immunity against SARS-CoV-2 may be just around the corner. There are currently nine coronavirus vaccines undergoing Phase-3 efficacy tests in large-scale clinical trials. Preliminary results suggest they produced strong immune responses in smaller population groups. A vaccine for the coronavirus may enter regulatory review by the U.S. Food and Drug Administration (FDA) as early as October.
If successful, companies researching a coronavirus vaccine will have a combined manufacturing capacity of billions of doses by the end of next year. Rest assured, the vaccine will be universally accessible pending approval. For example, large-cap pharmaceutical company Pfizer (NYSE: PFE) is pricing its vaccine candidate at just $19.50 per dose, or $39 for one immunization treatment course.
Turnaround in progress
During the second quarter of 2020, American Airlines secured a $4.75 billion loan from the U.S. Department of Treasury and raised over $3.6 billion from capital markets. In August, American Airlines borrowed $1.2 billion from Goldman Sachs. Furthermore, the company received $2 billion from the Payroll Support Program during the quarter, causing its net loss to narrow from $3.4 billion to $2.1 billion. American Airlines now has a total combined liquidity of $16.2 billion, which is more than enough to sustain its quarterly net loss until 2022 at current rates.
In addition, management is taking aggressive measures to right size operations before liquidity runs out. In fact, management aims to turn American Airlines cash flow positive by 2021.
Here are a few reasons why investors can take comfort in American's progress: First, the company's unions are in talks to extend Payroll Support Programs to 2021. Second, American Airlines is cutting its active fleet by 150 aircraft, thus reducing unnecessary operational expenses. Finally, management is slashing its unprofitable routes, most of which are between small cities.
All these measures are having a dramatic effect on the company's turnaround efforts. For example, from April through June, the company's RASM increased nearly six-fold to $0.103. Almost 60% of the company's operations originate from its Dallas and Charlotte hubs, which produced RASMs of up to $0.120. That's almost comparable to pre-pandemic RASM of $0.152 that it generated in the second quarter of 2019.
Takeaways for investors
American Airlines still holds an impressive 10% market share in the global air travel sector. The company stands to benefit tremendously in the event that a coronavirus vaccine enters the market next year, thanks to its ability to adapt quickly in a changing environment.
Last year, American Airlines generated $45.8 billion in revenue and $3.79 in earnings per share, and paid out $0.40 a share in dividends. The market will reward the company should its operations make a turnaround and performance starts to match previous peaks within a short period. For investors who are bargain hunting for industrial stocks, American Airlines seems like a great bet.
10 stocks we like better than American Airlines Group
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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.
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*Stock Advisor returns as of August 1, 2020
Zhiyuan Sun 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.
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Indeed, one of the nation's biggest airlines, American Airlines Group (NASDAQ: AAL), saw its stock fall by as much as 48% over the last twelve months, while the S&P 500 gained 20%. The worst seems to be over During the height of the pandemic in April, when fatality rates were at their highest, American Airlines' fleet operated with as little as 15% capacity, and generated just $0.018 in revenue per available seat mile (RASM). With decreasing infection rates in the U.S. as of August 30, states may probably decide to lift lockdown measures for good and accelerate reopening the economy, further boosting consumers' confidence in air travel.
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Indeed, one of the nation's biggest airlines, American Airlines Group (NASDAQ: AAL), saw its stock fall by as much as 48% over the last twelve months, while the S&P 500 gained 20%. American Airlines' cash burn has since narrowed from $100 million per day in April, to $56 million per day through May, to $30 million per day in June. Furthermore, the company received $2 billion from the Payroll Support Program during the quarter, causing its net loss to narrow from $3.4 billion to $2.1 billion.
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Indeed, one of the nation's biggest airlines, American Airlines Group (NASDAQ: AAL), saw its stock fall by as much as 48% over the last twelve months, while the S&P 500 gained 20%. Turnaround in progress During the second quarter of 2020, American Airlines secured a $4.75 billion loan from the U.S. Department of Treasury and raised over $3.6 billion from capital markets. 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.
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Indeed, one of the nation's biggest airlines, American Airlines Group (NASDAQ: AAL), saw its stock fall by as much as 48% over the last twelve months, while the S&P 500 gained 20%. If successful, companies researching a coronavirus vaccine will have a combined manufacturing capacity of billions of doses by the end of next year. For example, from April through June, the company's RASM increased nearly six-fold to $0.103.
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2020-09-02 00:00:00 UTC
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America's Top Airlines Ditch Change Fees -- Sort Of
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AAL
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https://www.nasdaq.com/articles/americas-top-airlines-ditch-change-fees-sort-of-2020-09-02
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nan
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Sunday was a momentous day for the U.S. airline industry, as United Airlines (NASDAQ: UAL) announced that it was doing away with change fees for regular economy and premium tickets on all domestic flights, effective immediately. United will also make same-day standby travel free for all customers beginning on Jan. 1, 2021.
In the ultra-competitive airline industry, it's risky for any carrier to be out of step with its closest rivals in terms of fees and policies. Not surprisingly, American Airlines (NASDAQ: AAL), Delta Air Lines (NYSE: DAL), and Alaska Air (NYSE: ALK) all matched or even one-upped United by Tuesday morning. Let's take a look at what this means for airlines and customers.
Airlines race to match United Airlines
On Monday, Delta Air Lines and American Airlines revised their change fee policies to avoid falling behind United. However, they took different approaches to addressing this shift in the competitive environment. Delta simply matched United's new policies, removing change fees on domestic tickets (including Puerto Rico and the Virgin Islands), excluding basic economy fares. Delta did not alter its standby policies, though.
American Airlines took a much bolder approach. It eliminated change fees for flights to and from Canada, Mexico, and the Caribbean as well as the U.S., Puerto Rico, and the Virgin Islands (again excluding basic economy tickets). Additionally, whereas United's policy does not allow customers to claim a refund or voucher if they switch to a cheaper flight -- and Delta appears to be following United's lead -- American Airlines said that if the new flight is cheaper, customers will receive a voucher for the difference. Additionally, American is implementing free same-day standby on Oct. 1.
Image source: United Airlines.
On Tuesday, Alaska Airlines followed its three largest rivals in updating its change fee policy. Alaska is eliminating change fees for all domestic and international flights, excluding saver fares. This is roughly similar to American's new policy, as Alaska Airlines doesn't operate any long-haul flights beyond North America.
What do the changes really mean?
United, Delta, American, and Alaska (and most of their peers) temporarily suspended change fees when the pandemic spiraled out of control earlier this year. Thus, in the short run, the changes announced over the past few days merely make permanent what was previously a temporary relaxation of the rules.
Furthermore, the new policies permitting free flight changes don't extend to basic economy tickets. That stands in contrast to Southwest Airlines, which doesn't charge change fees under any circumstances (and doesn't sell basic economy fares): a distinction the low-fare carrier has been promoting aggressively.
Last year, U.S. airlines pocketed $2.8 billion from change fees: 1.4% of their total revenue. While most airlines are still charging change fees for international flights -- at least long-haul international travel -- they will be giving up about 1% of their annual revenue by eliminating these fees for most short-haul tickets.
However, the corresponding advantages are significant. First, eliminating change fees will do away with booking anxiety: Customers will be more likely to book tickets without having their travel plans 100% nailed down. Second, by excluding basic economy tickets from the new free-flight-changes policies, airlines will give customers even greater reason to "buy up" from basic economy to their pricier standard economy fares.
A new routine
Offering free flight changes for standard economy tickets is certainly a customer-friendly move for United and its peers. Previously, many of these airlines had charged $200 change fees for domestic itineraries, a price completely out of proportion to the airline's opportunity cost. A no-change-fee policy will give people peace of mind when booking tickets in advance.
That said, it's too early to know what else airlines might change in the months and years ahead. As noted above, the new rules about flight changes give customers more reason to buy standard economy tickets rather than basic economy tickets. One distinct possibility is that airlines will attempt to capture that additional value by increasing the price differential between basic economy and standard economy fares.
Typically, airlines advertise basic economy tickets as a sort of teaser fare. If it costs more to upgrade to standard economy, airlines would effectively replace their change fee revenue with a stream of incremental "buy-up" revenue from customers who want to reserve the right to make flight changes later.
So don't cry for the airlines. Change fee revenue may be going away, for the most part. However, United Airlines, American Airlines, Delta Air Lines, and Alaska Airlines have plenty of options for offsetting the loss of this revenue stream as they strive to rebuild their profitability in the years ahead.
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.
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*Stock Advisor returns as of August 1, 2020
Adam Levine-Weinberg owns shares of Alaska Air Group, Delta Air Lines, and Southwest Airlines. The Motley Fool recommends Alaska Air Group, 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.
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Not surprisingly, American Airlines (NASDAQ: AAL), Delta Air Lines (NYSE: DAL), and Alaska Air (NYSE: ALK) all matched or even one-upped United by Tuesday morning. Delta simply matched United's new policies, removing change fees on domestic tickets (including Puerto Rico and the Virgin Islands), excluding basic economy fares. It eliminated change fees for flights to and from Canada, Mexico, and the Caribbean as well as the U.S., Puerto Rico, and the Virgin Islands (again excluding basic economy tickets).
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Not surprisingly, American Airlines (NASDAQ: AAL), Delta Air Lines (NYSE: DAL), and Alaska Air (NYSE: ALK) all matched or even one-upped United by Tuesday morning. Delta simply matched United's new policies, removing change fees on domestic tickets (including Puerto Rico and the Virgin Islands), excluding basic economy fares. As noted above, the new rules about flight changes give customers more reason to buy standard economy tickets rather than basic economy tickets.
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Not surprisingly, American Airlines (NASDAQ: AAL), Delta Air Lines (NYSE: DAL), and Alaska Air (NYSE: ALK) all matched or even one-upped United by Tuesday morning. Sunday was a momentous day for the U.S. airline industry, as United Airlines (NASDAQ: UAL) announced that it was doing away with change fees for regular economy and premium tickets on all domestic flights, effective immediately. Airlines race to match United Airlines On Monday, Delta Air Lines and American Airlines revised their change fee policies to avoid falling behind United.
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Not surprisingly, American Airlines (NASDAQ: AAL), Delta Air Lines (NYSE: DAL), and Alaska Air (NYSE: ALK) all matched or even one-upped United by Tuesday morning. Furthermore, the new policies permitting free flight changes don't extend to basic economy tickets. Second, by excluding basic economy tickets from the new free-flight-changes policies, airlines will give customers even greater reason to "buy up" from basic economy to their pricier standard economy fares.
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2020-09-01 00:00:00 UTC
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Qantas does not plan to remove booking change fees permanently - CEO
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https://www.nasdaq.com/articles/qantas-does-not-plan-to-remove-booking-change-fees-permanently-ceo-2020-09-01-0
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Qantas offering temporary fee relief, U.S. carriers permanent
Fares could rise to compensate for business travel downturn
Domestic capacity seen to be 30% of normal by Christmas - CAPA
Adds details on airfare forecast
SYDNEY, Sept 2 (Reuters) - Qantas Airways Ltd QAN.AX does not plan to permanently remove booking change fees, as major U.S. airlines have done, because it would damage its ability to manage revenue over the longer term, its chief executive said on Wednesday.
The Australian airline has temporarily waived the fees, even on its budget offshoot Jetstar, to provide passengers with more flexibility during the pandemic. But United Airlines Holdings Inc UAL.O, American Airlines Group Inc AAL.Oand Delta Air LinesInc DAL.Nthis week announced plans to do so permanently.
"I think when certainty comes back I am of the view it is a big part of how we revenue manage and yield," Qantas CEO Alan Joyce said of the fees at the CAPA Australia Pacific Aviation Summit.
"If every airfare is going to be flexible, your revenue management system I think fundamentally breaks down over the long term," he added.
Joyce said the airline's immediate focus was on adding flights that covered their cash costs, but that it would later lift ticket prices to help return to bottom-line profitability.
An expected hit to business traffic, driven more by economic downturn, is likely to lead to the airline to charge higher fares over time, he said.
"People may not even notice it," Joyce said of potential A$10 ($7.35) or A$20 increases to domestic fares.
The airline is running only about 20% of its usual domestic capacity because of state border closings.
CAPA Managing Director Derek Sadubin said the Australian domestic market was forecast to return to 30% of 2019's capacity levels by Christmas.
($1 = 1.3605 Australian dollars)
(Reporting by Jamie Freed Editing by Shri Navaratnam and Gerry Doyle)
((Jamie.Freed@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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But United Airlines Holdings Inc UAL.O, American Airlines Group Inc AAL.Oand Delta Air LinesInc DAL.Nthis week announced plans to do so permanently. Qantas offering temporary fee relief, U.S. carriers permanent Fares could rise to compensate for business travel downturn Domestic capacity seen to be 30% of normal by Christmas - CAPA Adds details on airfare forecast SYDNEY, Sept 2 (Reuters) - Qantas Airways Ltd QAN.AX does not plan to permanently remove booking change fees, as major U.S. airlines have done, because it would damage its ability to manage revenue over the longer term, its chief executive said on Wednesday. "I think when certainty comes back I am of the view it is a big part of how we revenue manage and yield," Qantas CEO Alan Joyce said of the fees at the CAPA Australia Pacific Aviation Summit.
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But United Airlines Holdings Inc UAL.O, American Airlines Group Inc AAL.Oand Delta Air LinesInc DAL.Nthis week announced plans to do so permanently. Qantas offering temporary fee relief, U.S. carriers permanent Fares could rise to compensate for business travel downturn Domestic capacity seen to be 30% of normal by Christmas - CAPA Adds details on airfare forecast SYDNEY, Sept 2 (Reuters) - Qantas Airways Ltd QAN.AX does not plan to permanently remove booking change fees, as major U.S. airlines have done, because it would damage its ability to manage revenue over the longer term, its chief executive said on Wednesday. "I think when certainty comes back I am of the view it is a big part of how we revenue manage and yield," Qantas CEO Alan Joyce said of the fees at the CAPA Australia Pacific Aviation Summit.
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But United Airlines Holdings Inc UAL.O, American Airlines Group Inc AAL.Oand Delta Air LinesInc DAL.Nthis week announced plans to do so permanently. Qantas offering temporary fee relief, U.S. carriers permanent Fares could rise to compensate for business travel downturn Domestic capacity seen to be 30% of normal by Christmas - CAPA Adds details on airfare forecast SYDNEY, Sept 2 (Reuters) - Qantas Airways Ltd QAN.AX does not plan to permanently remove booking change fees, as major U.S. airlines have done, because it would damage its ability to manage revenue over the longer term, its chief executive said on Wednesday. "I think when certainty comes back I am of the view it is a big part of how we revenue manage and yield," Qantas CEO Alan Joyce said of the fees at the CAPA Australia Pacific Aviation Summit.
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But United Airlines Holdings Inc UAL.O, American Airlines Group Inc AAL.Oand Delta Air LinesInc DAL.Nthis week announced plans to do so permanently. Qantas offering temporary fee relief, U.S. carriers permanent Fares could rise to compensate for business travel downturn Domestic capacity seen to be 30% of normal by Christmas - CAPA Adds details on airfare forecast SYDNEY, Sept 2 (Reuters) - Qantas Airways Ltd QAN.AX does not plan to permanently remove booking change fees, as major U.S. airlines have done, because it would damage its ability to manage revenue over the longer term, its chief executive said on Wednesday. The Australian airline has temporarily waived the fees, even on its budget offshoot Jetstar, to provide passengers with more flexibility during the pandemic.
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5334.0
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2020-09-01 00:00:00 UTC
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United Airlines Stock Is Only a Buy If You’re in It for the Long Haul
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https://www.nasdaq.com/articles/united-airlines-stock-is-only-a-buy-if-youre-in-it-for-the-long-haul-2020-09-01
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
United Airlines (NASDAQ:UAL) has seen constant turbulence this year with flights grounded for months on end and travel (both corporate and leisure) reduced for the foreseeable future. With that said, travel isn’t going to disappear forever because once cases subside, experts believe that the airlines including UAL stock will see a quick bounce back.
Source: travelview / Shutterstock.com
This means that although United Airlines’ stock is trending lower due to a Covid-19 demand slump, it is also a great opportunity for investors to buy in while prices remain low.
The stock also showed promising signs of recovery last week when the prices rose after the airline announced its largest round of layoffs.
As United scrambles to find a grip in a volatile market, the stock may be a good buy for its long-term gains.
UAL Stock Soars After Pilot Layoffs
Like many of its peers in the airline industry, the pandemic took a huge toll on United Airlines. During the first half of 2020, passenger revenue fell by 59.7% and the government had to intervene with payroll support to help the airline avoid massive layoffs and downsizing.
7 Hot Food Stocks to Buy for Tasty Returns
The $25 billion financial aid package sanctioned by the government served as a financial cushion for airlines in the first few months of 2020 and the deal is set to expire in September. With no recovery of air travel in sight, airlines have lobbied for an extension in the aid package but Congress has not reached a resolution on their decision.
This uncertainty of the future left many airlines with no choice but to layoff and furlough workers to keep with the falling demand. Following its peers, Delta (NYSE:DAL) and American Airlines (NYSE:AAL) that announced layoffs earlier this month, United said on Thursday that it is expected to cut 2,850 pilot jobs between Oct. 1 and Nov. 30.
The number of planned layoffs is higher than Delta and American Airlines but United has made the decision based on current demand for travel as well as for the remainder of the year which continues to remain low due to the resurgence of cases across the U.S. The airline also has greater exposure to international travel which could result in a long road to recovery.
However, investors reacted well to the news of the layoffs and UAL stock gained 2% following the announcement. The pilot layoffs represent just one group of workers and United announced that nearly 36,000 jobs will be at stake if the airline does not receive government aid in the coming months.
Airline Stocks Take Off After Covid Vaccine Hopes
Although airlines are taking the necessary safety precautions to keep passengers safe, travel is unlikely to reach its pre-pandemic levels unless a Covid vaccine is available. As airlines continue to wrestle with its low passenger numbers, UAL stock price increased by more than 7% last week when the Food and Drug Administration (FDA) announced that cases were down 22% since July.
Furthermore, the FDA also announced that an experimental vaccine by AstraZeneca (NYSE:AZN) was on the fast-track to approval. The company has created a plasma therapy that can be used to treat hospitalized Covid patients. While this is great news for investors who are bullish on airline stocks, United still has a long road to recovery with domestic travel down by 70% from the prior year.
The development of a vaccine also comes with a lot of moving parts and it could take a number of trials before a successful vaccine can be created at scale. Nevertheless, any news that gets us one step closer to a cure is a win for UAL stock in the turbulent airline industry.
The Bottom Line on United Airlines Stock
United Airlines stock prices will likely remain in constant flux in the coming months as new developments regarding a potential Covid-19 cure or more layoffs could be a boon or doom for the stock price.
Although the airline’s current stock price a far cry from its value this time last year, United will gain its footing once again when travel recovers from the pandemic. The only downside is the lack of clarity of when this will be.
In my opinion, assuming airlines survive this downturn, there are large gains to be made ahead if investors buy-in while prices remain low. If you are an investor who is tolerant to risk buy UAL stock but don’t expect to see returns for at least a couple of years.
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.
The post United Airlines Stock Is Only a Buy If You’re in It for the Long Haul appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Following its peers, Delta (NYSE:DAL) and American Airlines (NYSE:AAL) that announced layoffs earlier this month, United said on Thursday that it is expected to cut 2,850 pilot jobs between Oct. 1 and Nov. 30. Source: travelview / Shutterstock.com This means that although United Airlines’ stock is trending lower due to a Covid-19 demand slump, it is also a great opportunity for investors to buy in while prices remain low. The number of planned layoffs is higher than Delta and American Airlines but United has made the decision based on current demand for travel as well as for the remainder of the year which continues to remain low due to the resurgence of cases across the U.S.
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Following its peers, Delta (NYSE:DAL) and American Airlines (NYSE:AAL) that announced layoffs earlier this month, United said on Thursday that it is expected to cut 2,850 pilot jobs between Oct. 1 and Nov. 30. InvestorPlace - Stock Market News, Stock Advice & Trading Tips United Airlines (NASDAQ:UAL) has seen constant turbulence this year with flights grounded for months on end and travel (both corporate and leisure) reduced for the foreseeable future. The Bottom Line on United Airlines Stock United Airlines stock prices will likely remain in constant flux in the coming months as new developments regarding a potential Covid-19 cure or more layoffs could be a boon or doom for the stock price.
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Following its peers, Delta (NYSE:DAL) and American Airlines (NYSE:AAL) that announced layoffs earlier this month, United said on Thursday that it is expected to cut 2,850 pilot jobs between Oct. 1 and Nov. 30. InvestorPlace - Stock Market News, Stock Advice & Trading Tips United Airlines (NASDAQ:UAL) has seen constant turbulence this year with flights grounded for months on end and travel (both corporate and leisure) reduced for the foreseeable future. Airline Stocks Take Off After Covid Vaccine Hopes Although airlines are taking the necessary safety precautions to keep passengers safe, travel is unlikely to reach its pre-pandemic levels unless a Covid vaccine is available.
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Following its peers, Delta (NYSE:DAL) and American Airlines (NYSE:AAL) that announced layoffs earlier this month, United said on Thursday that it is expected to cut 2,850 pilot jobs between Oct. 1 and Nov. 30. However, investors reacted well to the news of the layoffs and UAL stock gained 2% following the announcement. The pilot layoffs represent just one group of workers and United announced that nearly 36,000 jobs will be at stake if the airline does not receive government aid in the coming months.
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2020-09-01 00:00:00 UTC
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Why Delta Is the Strongest Airline
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AAL
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https://www.nasdaq.com/articles/why-delta-is-the-strongest-airline-2020-09-01
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Berkshire Hathaway’s (NYSE:BRK) recent 13F filing showed that it had sold all of its airline stocks. Warren Buffett had already promised Berkshire would sell its shares of Delta Air Lines (NYSE:DAL), Southwest Airlines (NYSE:LUV), and American Airlines (NASDAQ:AAL). So, when DAL stock fell modestly last week, markets did not think that Berkshire’s news was to blame.
But with Delta’s stock now climbing and well off its 52-week lows, investors should buy the shares over those of other airlines.
Capacity Restrictions Hurt DAL Stock
On Aug. 20, Delta said it would continue blocking the middle seats on its flights into January 2021. Although the limited capacity will weigh on the company’s revenue, it’s making the right move. Delta Chief Customer Experience Officer Bill Lentsch said, “We believe that taking care of our customers and employees and restoring confidence in the safety of air travel is more important right now than filling up every seat on a plane.”
Delta’s actions should improve its image among the public. Customers who are already hesitant to fly will choose this airline over those who don’t leave their middle seats open.
But the demand for flights is still weak. For the week that ended on Aug. 20, the number of travelers who entered America’s airport was down week-over-week, according to the Transportation Security Administration.
7 Hot Food Stocks to Buy for Tasty Returns
Date Total Traveler Throughput Total Traveler Throughput
(1 Year Ago – Same Weekday)
8/20/2020 772,380 2,533,184
8/19/2020 586,718 2,306,838
8/18/2020 565,946 2,247,446
8/17/2020 773,319 2,576,965
8/16/2020 862,949 2,584,444
8/15/2020 689,895 2,171,962
8/14/2020 783,744 2,627,564
8/13/2020 761,821 2,602,446
Looking ahead, Delta will increasethe number of flights on its international routes in late 2019 and next year. Although it is too early to know for sure, the easing or elimination of the Covid-19 pandemic could justify the higher number of flights.
But first, countries need to open their borders. Until that happens, the airline’s international traffic will not rise much.
Delta Has the Healthiest Balance Sheet in the Sector
Compared to its peers, Delta has more cash on hand and less debt.
Company Cash Debt as Percent of Enterprise Value Long-Term Debt Total Debt Total Liabilities Equity
American Airlines Group 9,813 87% 35,670 40,049 67,713 -3,169
Delta Air Lines 15,668 64% 24,783 30,745 63,571 8,690
United Airlines Holdings 7,463 72% 19,747 24,892 46,384 8,517
Data courtesy of Stock Rover
Cash burn remains a problem for all airlines. Still, by urging its 3,000 flight attendants to take unpaid leave, Delta cut its operating costs. Since it expects to have more flight attendants than needed in 2021, the airline needed to address the over-staffing issue now.
In March, the airline’s executives took a 50% pay cut. So the flight attendants will not be the only ones making a sacrifice.
The Fair Value of DAL Stock
Simplywall.st has a price target of $65 on Delta’s stock. Wall Street analysts have an average price target of $38.86 on the shares, according to Tipranks.
Those are lofty expectations.
The stock can trade sharply higher, but the company must overcome near-term challenges first. It has plenty of liquidity, so there is no risk of it going bankrupt. Its revenue will only rebound if global travel restrictions ease, and that is largely dependent on the spread of the virus decelerating.
The continuing meaningful increases of coronavirus cases suggests that travel restrictions will not end soon. South Korea and Germany are among the places experiencing a resurgence of cases.
Even though many of those catching the virus in those countries and in the U.S. are younger, less susceptible people, investors cannot ignore the continuing rapid spread of the virus. Investors need to weigh the ongoing risks of the pandemic against the low valuation of DAL stock.
I am neutral to slightly bearish on Delta. And even though the stock could rally in the near-term, it is only suitable for speculators.
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 Why Delta Is the Strongest Airline appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Warren Buffett had already promised Berkshire would sell its shares of Delta Air Lines (NYSE:DAL), Southwest Airlines (NYSE:LUV), and American Airlines (NASDAQ:AAL). Capacity Restrictions Hurt DAL Stock On Aug. 20, Delta said it would continue blocking the middle seats on its flights into January 2021. For the week that ended on Aug. 20, the number of travelers who entered America’s airport was down week-over-week, according to the Transportation Security Administration.
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Warren Buffett had already promised Berkshire would sell its shares of Delta Air Lines (NYSE:DAL), Southwest Airlines (NYSE:LUV), and American Airlines (NASDAQ:AAL). 7 Hot Food Stocks to Buy for Tasty Returns Date Total Traveler Throughput Total Traveler Throughput (1 Year Ago – Same Weekday) 8/20/2020 772,380 2,533,184 8/19/2020 586,718 2,306,838 8/18/2020 565,946 2,247,446 8/17/2020 773,319 2,576,965 8/16/2020 862,949 2,584,444 8/15/2020 689,895 2,171,962 8/14/2020 783,744 2,627,564 8/13/2020 761,821 2,602,446 Looking ahead, Delta will increasethe number of flights on its international routes in late 2019 and next year. Company Cash Debt as Percent of Enterprise Value Long-Term Debt Total Debt Total Liabilities Equity American Airlines Group 9,813 87% 35,670 40,049 67,713 -3,169 Delta Air Lines 15,668 64% 24,783 30,745 63,571 8,690 United Airlines Holdings 7,463 72% 19,747 24,892 46,384 8,517 Data courtesy of Stock Rover Cash burn remains a problem for all airlines.
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Warren Buffett had already promised Berkshire would sell its shares of Delta Air Lines (NYSE:DAL), Southwest Airlines (NYSE:LUV), and American Airlines (NASDAQ:AAL). InvestorPlace - Stock Market News, Stock Advice & Trading Tips Berkshire Hathaway’s (NYSE:BRK) recent 13F filing showed that it had sold all of its airline stocks. 7 Hot Food Stocks to Buy for Tasty Returns Date Total Traveler Throughput Total Traveler Throughput (1 Year Ago – Same Weekday) 8/20/2020 772,380 2,533,184 8/19/2020 586,718 2,306,838 8/18/2020 565,946 2,247,446 8/17/2020 773,319 2,576,965 8/16/2020 862,949 2,584,444 8/15/2020 689,895 2,171,962 8/14/2020 783,744 2,627,564 8/13/2020 761,821 2,602,446 Looking ahead, Delta will increasethe number of flights on its international routes in late 2019 and next year.
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Warren Buffett had already promised Berkshire would sell its shares of Delta Air Lines (NYSE:DAL), Southwest Airlines (NYSE:LUV), and American Airlines (NASDAQ:AAL). InvestorPlace - Stock Market News, Stock Advice & Trading Tips Berkshire Hathaway’s (NYSE:BRK) recent 13F filing showed that it had sold all of its airline stocks. The Fair Value of DAL Stock Simplywall.st has a price target of $65 on Delta’s stock.
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5336.0
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2020-08-31 00:00:00 UTC
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Not all gloom for aviation training as MAX, cargo fleets beckon
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AAL
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https://www.nasdaq.com/articles/not-all-gloom-for-aviation-training-as-max-cargo-fleets-beckon-2020-08-31
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By Sanjana Shivdas and Allison Lampert
Aug 31 (Reuters) - Aviation training specialists, which saw simulator sales plummet when the coronavirus pandemic brought air travel to a near halt, are getting some relief from an uptick in demand from cargo carriers and airlines gearing up for the Boeing BA.N 737 MAX's return to service.
Simulator makers Textron TXT.N and CAE CAE.TO had bet on a sales bonanza with Boeing recommending fresh pilot training on a MAX simulator for the aircraft grounded since March 2019 following two deadly crashes, when it finally flew again.
The pandemic dashed those hopes, crippling air traffic and casting doubt over the jet's future.
Now they look to business aviation, a lifting of travel restrictions, revived hopes for the MAX's certification later this year or early next, and heavier cargo traffic to boost training and help through the simulator sales drought.
TRU Flight Training Iceland, a joint venture between Icelandair and Textron's TRU Simulation + Training, for example, is seeing continued demand from cargo pilots training on its Boeing 757 simulator, its managing director Gudmundur Orn Gunnarson said.
Cargo carriers and Icelandair are now the center's top sources of training activity, though that is roughly at half of where it was a year ago, Gunnarson said.
Canada's CAE, the world's largest civil aviation training company, said it was in advanced discussions with airlines about doing more training after it reported a sharp drop in simulator deliveries.
Both CAE and its U.S. rival Textron built 737 MAX simulators last year without formal orders, betting on pent up demand, but the pandemic dashed those expectations.
A CAE spokeswoman said the majority have since been converted to orders and been delivered.
CAE delivered 56 full-flight simulators in fiscal year 2020 ended on March 31, but only two in April-June. Textron in June suspended the production of simulators at its Montreal plant, cutting up to 1,950 jobs across several business units.
Textron and CAE see a quicker recovery in business aviation, where flights have dropped 4% in the U.S. year-to-date compared with 2019, even as commercial traffic plunged 45%, according to Flightaware.
Textron also sees demand in the simulator training market from schools and the military, said Vance Ontjes, TRU's director of training and customer services.
Gunnarson said the Icelandair joint venture has orders to lease the 737 MAX simulator for pilot training, though that will happen only when the plane is close to being certified.
Jonathan Norman, aerospace consultant at Frost & Sullivan, expects MAX's certification in the U.S. to fuel extra demand for training for a year.
"That's the amount of time it is going to take airlines to re-certify all their pilots," he said, adding Southwest Airlines LUV.N - the largest operator of the MAX worldwide - may need to retrain all of its pilots.
Job cuts across the industry and many experienced pilots retiring, with new recruits furloughed or laid off, will also require retraining many who remain.
"It creates a cascade effect," said aviation consultant Kit Darby.
U.S. airlines, which received $25 billion in March to cover payroll and protect jobs until September, are asking for a further installment, though talks on another government COVID-19 stimulus remain stalled.
American Airlines AAL.O, United Airlines UAL.O and Delta Air Lines DAL.N are bracing for pilot cuts.
The government program's expiry could even overwhelm training providers, says Dennis Tajer, a spokesman for the Allied Pilots Association that represents AA pilots.
"Potential furloughs should they hit are going to drown the training facilities with the amount of training that needs to be done," he said.
Longer-term, training and simulator providers will have to contend with smaller fleets and fewer pilots given industry predictions of air travel returning to pre-pandemic levels in 2024.
Analysts also doubt an upswing in cargo business can last given the underlying weakness of the global economy.
(Reporting by Allison Lampert in Montreal and Sanjana Shivdas in Bengaluru Editing by Tomasz Janowski and Chris Reese)
((SanjanaSitara.Shivdas@thomsonreuters.com; within U.S. +1 646 223 8780, outside U.S. +91 80 6749 1642; Twitter: @SanjanaShivdas;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines AAL.O, United Airlines UAL.O and Delta Air Lines DAL.N are bracing for pilot cuts. By Sanjana Shivdas and Allison Lampert Aug 31 (Reuters) - Aviation training specialists, which saw simulator sales plummet when the coronavirus pandemic brought air travel to a near halt, are getting some relief from an uptick in demand from cargo carriers and airlines gearing up for the Boeing BA.N 737 MAX's return to service. Now they look to business aviation, a lifting of travel restrictions, revived hopes for the MAX's certification later this year or early next, and heavier cargo traffic to boost training and help through the simulator sales drought.
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American Airlines AAL.O, United Airlines UAL.O and Delta Air Lines DAL.N are bracing for pilot cuts. TRU Flight Training Iceland, a joint venture between Icelandair and Textron's TRU Simulation + Training, for example, is seeing continued demand from cargo pilots training on its Boeing 757 simulator, its managing director Gudmundur Orn Gunnarson said. Both CAE and its U.S. rival Textron built 737 MAX simulators last year without formal orders, betting on pent up demand, but the pandemic dashed those expectations.
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American Airlines AAL.O, United Airlines UAL.O and Delta Air Lines DAL.N are bracing for pilot cuts. By Sanjana Shivdas and Allison Lampert Aug 31 (Reuters) - Aviation training specialists, which saw simulator sales plummet when the coronavirus pandemic brought air travel to a near halt, are getting some relief from an uptick in demand from cargo carriers and airlines gearing up for the Boeing BA.N 737 MAX's return to service. Simulator makers Textron TXT.N and CAE CAE.TO had bet on a sales bonanza with Boeing recommending fresh pilot training on a MAX simulator for the aircraft grounded since March 2019 following two deadly crashes, when it finally flew again.
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American Airlines AAL.O, United Airlines UAL.O and Delta Air Lines DAL.N are bracing for pilot cuts. By Sanjana Shivdas and Allison Lampert Aug 31 (Reuters) - Aviation training specialists, which saw simulator sales plummet when the coronavirus pandemic brought air travel to a near halt, are getting some relief from an uptick in demand from cargo carriers and airlines gearing up for the Boeing BA.N 737 MAX's return to service. Now they look to business aviation, a lifting of travel restrictions, revived hopes for the MAX's certification later this year or early next, and heavier cargo traffic to boost training and help through the simulator sales drought.
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5337.0
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2020-08-31 00:00:00 UTC
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Pre-Market Most Active for Aug 31, 2020 : NIO, AIMT, AAPL, GNW, TSLA, GE, AAL, AKCA, QQQ, CCL, NCLH, RKT
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AAL
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https://www.nasdaq.com/articles/pre-market-most-active-for-aug-31-2020-%3A-nio-aimt-aapl-gnw-tsla-ge-aal-akca-qqq-ccl-nclh
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The NASDAQ 100 Pre-Market Indicator is up 13.87 to 12,009.72. The total Pre-Market volume is currently 29,571,018 shares traded.
The following are the most active stocks for the pre-market session:
NIO Inc. (NIO) is -1.39 at $17.11, with 11,628,677 shares traded. NIO's current last sale is 122.21% of the target price of $14.
Aimmune Therapeutics, Inc. (AIMT) is +21.74 at $34.34, with 7,213,664 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2020. The consensus EPS forecast is $-0.99. As reported in the last short interest update the days to cover for AIMT is 21.047138; this calculation is based on the average trading volume of the stock.
Apple Inc. (AAPL) is +0.8125 at $125.62, with 3,988,242 shares traded. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2020. The consensus EPS forecast is $2.73. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
Genworth Financial Inc (GNW) is +1.16 at $3.53, with 2,954,845 shares traded.
Tesla, Inc. (TSLA) is +2.96 at $445.64, with 2,039,548 shares traded. TSLA's current last sale is 48.97% of the target price of $910.
General Electric Company (GE) is -0.11 at $6.50, with 983,439 shares traded. As reported by Zacks, the current mean recommendation for GE is in the "buy range".
American Airlines Group, Inc. (AAL) is -0.0098 at $13.58, with 803,761 shares traded. AAL's current last sale is 113.17% of the target price of $12.
Akcea Therapeutics, Inc. (AKCA) is +6.7 at $18.08, with 763,492 shares traded. As reported in the last short interest update the days to cover for AKCA is 17.731819; this calculation is based on the average trading volume of the stock.
Invesco QQQ Trust, Series 1 (QQQ) is +0.47 at $293.00, with 673,218 shares traded. This represents a 77.65% increase from its 52 Week Low.
Carnival Corporation (CCL) is +0.27 at $17.48, with 664,336 shares traded. CCL's current last sale is 109.25% of the target price of $16.
Norwegian Cruise Line Holdings Ltd. (NCLH) is +0.14 at $17.83, with 456,112 shares traded. NCLH's current last sale is 111.44% of the target price of $16.
Rocket Companies, Inc. (RKT) is +0.92 at $29.34, with 416,147 shares traded. RKT's current last sale is 163% of the target price of $18.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines Group, Inc. (AAL) is -0.0098 at $13.58, with 803,761 shares traded. AAL's current last sale is 113.17% of the target price of $12. As reported in the last short interest update the days to cover for AIMT is 21.047138; this calculation is based on the average trading volume of the stock.
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American Airlines Group, Inc. (AAL) is -0.0098 at $13.58, with 803,761 shares traded. AAL's current last sale is 113.17% of the target price of $12. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2020.
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American Airlines Group, Inc. (AAL) is -0.0098 at $13.58, with 803,761 shares traded. AAL's current last sale is 113.17% of the target price of $12. The total Pre-Market volume is currently 29,571,018 shares traded.
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AAL's current last sale is 113.17% of the target price of $12. American Airlines Group, Inc. (AAL) is -0.0098 at $13.58, with 803,761 shares traded. NIO's current last sale is 122.21% of the target price of $14.
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5338.0
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2020-08-31 00:00:00 UTC
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Why It’s Clear Skies Ahead for Spirit Airlines Stock
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AAL
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https://www.nasdaq.com/articles/why-its-clear-skies-ahead-for-spirit-airlines-stock-2020-08-31
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
It’s still a long road ahead, but airlines are slowly coming back. And, among the various airline stocks out there, few hold a candle to Spirit Airlines (NYSE:SAVE) stock.
SAVE) branded airplane flying in the air" width="300" height="169">
Source: Markus Mainka / Shutterstock.com
The best value in the sector, this low-cost carrier stands a greater chance of getting “back to normal” sooner than legacy rivals like American Airlines (NASDAQ:AAL), Delta Airlines (NYSE:DAL) and United Airlines (NASDAQ:UAL).
Not only that, Spirit is well ahead when it comes to minimizing cash burn. In fact, this airline basically broke even back in June. Granted, “break-even” doesn’t sound like smashing success. But, considering carriers like American burned through $40 million per day that month, this carrier may be knocking it out of the park by comparison.
Add in its strong liquidity position, and it’s clear this remains one of the best ways to play the inevitable airline recovery. Once the novel coronavirus is over and done with, low-cost names like this one aren’t going to just survive but thrive as well.
7 Top Stocks Under $5
And with shares holding steady around $18 per share, today’s price level is the perfect entry point.
SAVE Stock and The Air Travel Recovery
Since the outbreak first hit the U.S., there has been many false starts for a recovery. Back in June, investors rushed back into airline stocks on the hopes of a faster-than-expected recovery. But a surge in cases across the country brought that excitement to a halt.
Now, with positive developments regarding cases and a vaccine, travel demand could see a boost this fall. Air traffic levels have improved since bottoming out in the spring. But domestic traffic remains down 70% year-over-year. All bets are off whether this means a rapid increase in traffic from now through the end of 2020.
But the situation is improving, not getting worse. As InvestorPlace’s David Moadel wrote, that’s clear from the TSA daily screening numbers that are trending higher.
But what does this all mean for investors looking for opportunity in this hard-hit sector? Firstly, some carriers are going to bounce back sooner than the rest. Namely, low-cost names like Spirit Airlines.
Between its lower cost structure, strong balance sheet, and lack of exposure to harder-hit segments of the travel market, low-cost airlines have an edge when it comes to staging a comeback. And that may be the key to this stock’s success over the next year.
Why Spirit Will Bounce Back Fast
Many investors may see opportunity making airline comeback plays by buying beaten-down legacy carriers like American, Delta and United.
Yet, this across-the-board buying may not be the best move. Burdened with heavy cost structures, and facing more hurdles, there are many risks on the table buying old-school airline stocks today.
So, what does that mean? If you are looking for opportunity in this space, you have to go with low-cost plays like SAVE stock. Firstly, this carrier’s low-cost structure may bring it back to profitability much sooner than the major players in the industry.
Namely, with a lower cost structure, Spirit can better compete on price. And, with airlines clamoring for a shrunken domestic travel market, price is going to be a major factor in getting reservations.
Secondly, as this commentator wrote back in June, this carrier’s bread-and-butter is domestic leisure travel, which is a stark contrast to the major carriers, more dependent on harder-hit international and business travel. It’s safe to say international travel will take much longer to recover. And, with corporate America going virtual with meetings and conferences, a business travel rebound looks questionable as well.
The domestic traveler market has relatively better prospects. Sure, many may still shun air travel until social distancing and face mask requirements are lifted. Yet, life goes on. People will need to travel by plane to attend weddings and other family functions. Six months of cabin fever may compel more vacationers as well. In short, demand will continue to trend higher.
Thirdly, with its strong liquidity and balance sheet, this carrier stands to weather the storm, if said storms linger on through next year. In short, there are plenty of reason to remain bullish on this name.
One of The Best Ways to Play An Airline Comeback
Granted, it’s not all a slam-dunk for Spirit Airlines. With the risk of continued headwinds, the carrier is already made plans to furlough 30% of its workforce. But, while its smartly planning for the worst-case scenario, it may get through this much better than Wall Street currently expects.
Between a cost-structure advantage, a focus on the domestic passenger market, and its strong liquidity, SAVE stock remains one of the strongest airline recovery plays out there.
Thomas Niel, contributor to InvestorPlace, has written single-stock analysis since 2016. As of this writing, Thomas Niel did not hold a position in any of the aforementioned securities.
The post Why It’s Clear Skies Ahead for Spirit 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.
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SAVE) branded airplane flying in the air" width="300" height="169"> Source: Markus Mainka / Shutterstock.com The best value in the sector, this low-cost carrier stands a greater chance of getting “back to normal” sooner than legacy rivals like American Airlines (NASDAQ:AAL), Delta Airlines (NYSE:DAL) and United Airlines (NASDAQ:UAL). Between its lower cost structure, strong balance sheet, and lack of exposure to harder-hit segments of the travel market, low-cost airlines have an edge when it comes to staging a comeback. Why Spirit Will Bounce Back Fast Many investors may see opportunity making airline comeback plays by buying beaten-down legacy carriers like American, Delta and United.
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SAVE) branded airplane flying in the air" width="300" height="169"> Source: Markus Mainka / Shutterstock.com The best value in the sector, this low-cost carrier stands a greater chance of getting “back to normal” sooner than legacy rivals like American Airlines (NASDAQ:AAL), Delta Airlines (NYSE:DAL) and United Airlines (NASDAQ:UAL). Between its lower cost structure, strong balance sheet, and lack of exposure to harder-hit segments of the travel market, low-cost airlines have an edge when it comes to staging a comeback. Why Spirit Will Bounce Back Fast Many investors may see opportunity making airline comeback plays by buying beaten-down legacy carriers like American, Delta and United.
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SAVE) branded airplane flying in the air" width="300" height="169"> Source: Markus Mainka / Shutterstock.com The best value in the sector, this low-cost carrier stands a greater chance of getting “back to normal” sooner than legacy rivals like American Airlines (NASDAQ:AAL), Delta Airlines (NYSE:DAL) and United Airlines (NASDAQ:UAL). And, among the various airline stocks out there, few hold a candle to Spirit Airlines (NYSE:SAVE) stock. Secondly, as this commentator wrote back in June, this carrier’s bread-and-butter is domestic leisure travel, which is a stark contrast to the major carriers, more dependent on harder-hit international and business travel.
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SAVE) branded airplane flying in the air" width="300" height="169"> Source: Markus Mainka / Shutterstock.com The best value in the sector, this low-cost carrier stands a greater chance of getting “back to normal” sooner than legacy rivals like American Airlines (NASDAQ:AAL), Delta Airlines (NYSE:DAL) and United Airlines (NASDAQ:UAL). And, among the various airline stocks out there, few hold a candle to Spirit Airlines (NYSE:SAVE) stock. Namely, low-cost names like Spirit Airlines.
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5339.0
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2020-08-31 00:00:00 UTC
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United Declares War on Fees, Forces Response From Rivals
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AAL
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https://www.nasdaq.com/articles/united-declares-war-on-fees-forces-response-from-rivals-2020-08-31
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nan
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A move by United Airlines Holdings (NASDAQ: UAL) to permanently eliminate change fees on tickets is reverberating through the airline industry on Monday and is likely not making United many friends among its airline rivals.
United said Sunday effective immediately it would eliminate the up-to-$200 fee it charged to change tickets, getting rid of a charge that helped it generate more than $600 million in fee income last year. A number of major airlines temporarily waived the fee earlier this year in response to the COVID-19 pandemic, but until now Southwest Airlines (NYSE: LUV) was the only major airline that did not charge change fees.
Image source: United Airlines.
The move comes at a time when airlines are desperate for revenue but also trying to win over reluctant customers. Industry revenue was down by about 80% year over year in the second quarter, and it is expected to take years for demand to return to pre-pandemic levels.
"Following previous tough times, airlines made difficult decisions to survive, sometimes at the expense of customer service," United CEO Scott Kirby said in a video message to customers announcing the move. "United Airlines won't be following that same playbook as we come out of this crisis. Instead, we're taking a completely different approach -- and looking at new ways to serve our customers better."
Analyst Robert Stallard at Vertical Research Partners in a note out Monday likened the move to Caesar's crossing of the Rubicon, which set off the Roman civil war, writing that "while passengers can rejoice, we're not sure if United's rivals will be quite so enamored by this move."
United's rivals might not be enamored, but in a competitive market they have no choice but to go along. Both Delta Air Lines (NYSE: DAL) and American Airlines Group (NASDAQ: AAL) on Monday afternoon said they would eliminate change fees as well.
Combined, United, American, Delta, and Southwest control more than 80% of the U.S. domestic market.
10 stocks we like better than United Airlines Holdings
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Lou Whiteman 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.
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Both Delta Air Lines (NYSE: DAL) and American Airlines Group (NASDAQ: AAL) on Monday afternoon said they would eliminate change fees as well. Analyst Robert Stallard at Vertical Research Partners in a note out Monday likened the move to Caesar's crossing of the Rubicon, which set off the Roman civil war, writing that "while passengers can rejoice, we're not sure if United's rivals will be quite so enamored by this move." * 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!
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Both Delta Air Lines (NYSE: DAL) and American Airlines Group (NASDAQ: AAL) on Monday afternoon said they would eliminate change fees as well. A move by United Airlines Holdings (NASDAQ: UAL) to permanently eliminate change fees on tickets is reverberating through the airline industry on Monday and is likely not making United many friends among its airline rivals. The Motley Fool recommends Delta Air Lines and Southwest Airlines.
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Both Delta Air Lines (NYSE: DAL) and American Airlines Group (NASDAQ: AAL) on Monday afternoon said they would eliminate change fees as well. A move by United Airlines Holdings (NASDAQ: UAL) to permanently eliminate change fees on tickets is reverberating through the airline industry on Monday and is likely not making United many friends among its airline rivals. A number of major airlines temporarily waived the fee earlier this year in response to the COVID-19 pandemic, but until now Southwest Airlines (NYSE: LUV) was the only major airline that did not charge change fees.
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Both Delta Air Lines (NYSE: DAL) and American Airlines Group (NASDAQ: AAL) on Monday afternoon said they would eliminate change fees as well. * 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 recommends Delta Air Lines and Southwest Airlines.
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5340.0
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2020-08-31 00:00:00 UTC
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Delta, American drop domestic change fees, matching move by United
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AAL
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https://www.nasdaq.com/articles/delta-american-drop-domestic-change-fees-matching-move-by-united-2020-08-31
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nan
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By Tracy Rucinski
CHICAGO, Aug 31 (Reuters) - Delta Air Lines DAL.N and American Airlines AAL.O said on Monday they are permanently dropping domestic change fees, mirroring an announcement by rival United Airlines UAL.O on Sunday in a push to woo back travelers.
U.S. airlines are burning through millions of dollars daily as the coronavirus pandemic hits passenger air travel, which is hovering around 30% of what it was a year ago, forcing more customer-friendly policies to encourage people to start traveling again.
Atlanta-based Delta said the elimination of change fees is effective immediately and includes tickets purchased for travel within the United States, Puerto Rico and U.S. Virgin Islands. American's change also covers flights to Canada, Mexico and the Caribbean.
The new policies do not cover any of the three airlines' basic economy tickets.
Low-cost rival Southwest Airlines LUV.N has never charged a change fee for its tickets.
Delta, United and American were already waiving change fees through the end of the year to give travelers more flexibility in an uncertain environment.
The fees represented around 2% to 3% of their total revenues in 2019, though analysts said the overall financial impact going forward will be limited as focus remains on generating bookings.
Delta collected $830 million in ticket cancellation and change fees last year, American $819 million and United $625 million, according to the U.S. Department of Transportation.
(Reporting by Tracy Rucinski Editing by Chris Reese and Cynthia Osterman)
((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.
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By Tracy Rucinski CHICAGO, Aug 31 (Reuters) - Delta Air Lines DAL.N and American Airlines AAL.O said on Monday they are permanently dropping domestic change fees, mirroring an announcement by rival United Airlines UAL.O on Sunday in a push to woo back travelers. Atlanta-based Delta said the elimination of change fees is effective immediately and includes tickets purchased for travel within the United States, Puerto Rico and U.S. Virgin Islands. Delta, United and American were already waiving change fees through the end of the year to give travelers more flexibility in an uncertain environment.
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By Tracy Rucinski CHICAGO, Aug 31 (Reuters) - Delta Air Lines DAL.N and American Airlines AAL.O said on Monday they are permanently dropping domestic change fees, mirroring an announcement by rival United Airlines UAL.O on Sunday in a push to woo back travelers. Delta, United and American were already waiving change fees through the end of the year to give travelers more flexibility in an uncertain environment. Delta collected $830 million in ticket cancellation and change fees last year, American $819 million and United $625 million, according to the U.S. Department of Transportation.
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By Tracy Rucinski CHICAGO, Aug 31 (Reuters) - Delta Air Lines DAL.N and American Airlines AAL.O said on Monday they are permanently dropping domestic change fees, mirroring an announcement by rival United Airlines UAL.O on Sunday in a push to woo back travelers. Atlanta-based Delta said the elimination of change fees is effective immediately and includes tickets purchased for travel within the United States, Puerto Rico and U.S. Virgin Islands. Delta collected $830 million in ticket cancellation and change fees last year, American $819 million and United $625 million, according to the U.S. Department of Transportation.
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By Tracy Rucinski CHICAGO, Aug 31 (Reuters) - Delta Air Lines DAL.N and American Airlines AAL.O said on Monday they are permanently dropping domestic change fees, mirroring an announcement by rival United Airlines UAL.O on Sunday in a push to woo back travelers. Atlanta-based Delta said the elimination of change fees is effective immediately and includes tickets purchased for travel within the United States, Puerto Rico and U.S. Virgin Islands. Delta collected $830 million in ticket cancellation and change fees last year, American $819 million and United $625 million, according to the U.S. Department of Transportation.
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5341.0
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2020-08-30 00:00:00 UTC
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Is There Upside For Alaska Air Group Stock At $37?
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AAL
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https://www.nasdaq.com/articles/is-there-upside-for-alaska-air-group-stock-at-%2437-2020-08-30
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nan
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After gaining 54% since the lows observed on March 23, we believe that Alaska Airlines’ stock (NYSE: ALK) has a potential upside at the current price of $37 per share despite tepid air travel demand and growing long-term liabilities. The coronavirus crisis brought air traffic to a grinding halt and prompted regulators to provide a $25 billion bailout to the vulnerable industry. Interestingly, smaller fleet operators, including Alaska Airways, are in a better position primarily supported by a higher operating margin and younger fleet. The company has roughly 100 unencumbered aircraft with an average age of 9 years, real estate assets, slot assets, and a loyalty program. In comparison, the average age of American Airlines and Delta Airlines’ mainline fleet is 11 years and 15 years, respectively. While American and Delta’s unencumbered assets are worth nearly 4x that of Alaska Air Group (ALK’s fleet size = 300 aircraft; DAL fleet size = 1062) but, after United Airlines failed bond offering which was secured by older aircraft, the unencumbered assets of larger carriers are attracting higher interest rates due to limited service life.
After the CDC’s travel advisory in March, domestic and international air travel demand plummeted by more than 90%. Currently, passenger numbers at TSA checkpoints are down by almost 70% (y-o-y). While the company’s revenues and earnings have consistently grown over the last couple of years, the $120 million of monthly cash burn has put pressure on the company’s management to raise additional debt capital. Despite the soaring interest burden eroding shareholder value, we expect the company’s higher share of unencumbered assets to support future debt offerings. Also, the stock is currently trading at a trailing P/E multiple of 5.8, nearly 50% lower than 2019. Our dashboard Why Alaska Airways Stock moved -48% highlights the key numbers, and we explain more below.
Alaska Airlines’ Revenues have grown by 11% from $7.9 billion in 2017 to $8.8 billion in 2019, which has translated into a lower net income expansion due to a percentage-point reduction in adjusted net income margin. Moreover, the earnings growth on a per-share basis has also remained similar due to relatively flat shares outstanding. In the past three years, the company has spent more capital on retiring debt instead of repurchasing shares. Due to the growing debt burden and ongoing cash preservation measures, we believe that the company will keep dividends and share buy-backs suspended until the air travel demand recovers completely. But given the company’s younger fleet, a large pool of unencumbered assets, and substantially low P/E multiple, we expect an upside in Alaska Airlines’ stock.
Can Alaska Air Group’s Liquid Assets Support Its Cash Burn Rate?
The U.S. Airline industry received a $25 billion bailout under the CARES Act to support employee costs for the second and third quarters. As employee and fuel expenses account for nearly 50% of the total operating expenses, the company requires additional funds to support these huge expense heads after the CARES Act grant runs out. Other carriers, including Southwest, Delta, and JetBlue have also been raising debt capital to cover fixed costs in the fourth quarter. Alaska Air Group raised $1.2 billion keeping 61 aircraft as collateral in Q2 and reduced the cash burn rate from $400 million per month in March to $120 million in June by curtailing capacity and reducing overheads. Currently, it has sufficient cash to support fixed costs if air traffic demand recovers by year-end or early next year. Also, another $25 billion in aid by the U.S. government will preserve investor wealth and safeguard jobs for a couple of quarters if the coronavirus crisis shows no sign of abatement.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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After gaining 54% since the lows observed on March 23, we believe that Alaska Airlines’ stock (NYSE: ALK) has a potential upside at the current price of $37 per share despite tepid air travel demand and growing long-term liabilities. Due to the growing debt burden and ongoing cash preservation measures, we believe that the company will keep dividends and share buy-backs suspended until the air travel demand recovers completely. But given the company’s younger fleet, a large pool of unencumbered assets, and substantially low P/E multiple, we expect an upside in Alaska Airlines’ stock.
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While American and Delta’s unencumbered assets are worth nearly 4x that of Alaska Air Group (ALK’s fleet size = 300 aircraft; DAL fleet size = 1062) but, after United Airlines failed bond offering which was secured by older aircraft, the unencumbered assets of larger carriers are attracting higher interest rates due to limited service life. While the company’s revenues and earnings have consistently grown over the last couple of years, the $120 million of monthly cash burn has put pressure on the company’s management to raise additional debt capital. Currently, it has sufficient cash to support fixed costs if air traffic demand recovers by year-end or early next year.
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After gaining 54% since the lows observed on March 23, we believe that Alaska Airlines’ stock (NYSE: ALK) has a potential upside at the current price of $37 per share despite tepid air travel demand and growing long-term liabilities. While American and Delta’s unencumbered assets are worth nearly 4x that of Alaska Air Group (ALK’s fleet size = 300 aircraft; DAL fleet size = 1062) but, after United Airlines failed bond offering which was secured by older aircraft, the unencumbered assets of larger carriers are attracting higher interest rates due to limited service life. While the company’s revenues and earnings have consistently grown over the last couple of years, the $120 million of monthly cash burn has put pressure on the company’s management to raise additional debt capital.
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While American and Delta’s unencumbered assets are worth nearly 4x that of Alaska Air Group (ALK’s fleet size = 300 aircraft; DAL fleet size = 1062) but, after United Airlines failed bond offering which was secured by older aircraft, the unencumbered assets of larger carriers are attracting higher interest rates due to limited service life. While the company’s revenues and earnings have consistently grown over the last couple of years, the $120 million of monthly cash burn has put pressure on the company’s management to raise additional debt capital. But given the company’s younger fleet, a large pool of unencumbered assets, and substantially low P/E multiple, we expect an upside in Alaska Airlines’ stock.
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5342.0
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2020-08-28 00:00:00 UTC
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S&P 500 Up Again as Carnival, MGM, Delta Stocks Surge on Consumer Spending Growth
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AAL
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https://www.nasdaq.com/articles/sp-500-up-again-as-carnival-mgm-delta-stocks-surge-on-consumer-spending-growth-2020-08-28
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The S&P 500 Index (SNPINDEX: ^GSPC) gained another 23 points, or 0.67%, on Friday, closing the last week of August 3.2% higher than it started. That was the best week of the month, and barring a collapse on Monday, would make August the best month for stocks since May.
Today's big gains came after the Department of Commerce said that an important measure of personal consumer spending increased 1.9% on a seasonally adjusted basis in July.
Investors have been bullish on travel and hospitality stocks lately. Image source: Getty Images.
On this news, along with continued momentum from Thursday's big news that the Food and Drug Administration had approved a 15-minute COVID-19 test costing $5, investors continued to buy shares of companies seen as being big beneficiaries of fast, cheap testing. These include cruise stocks, airline stocks, and casino and hotel stocks. Leading the charge today was Carnival (NYSE: CCL) with shares up almost 7%; along with Wynn Resorts and Alaska Air, up nearly 6%; and MGM Resorts International (NYSE: MGM) and Marriott International (NASDAQ: MAR), up more than 4%.
Hospitality, travel stocks continue to lead the charge
Today's big move higher for the stocks above, along with Delta Air Lines (NYSE: DAL) (which gained almost 4% today), is a continuation of a huge month. Here is how August played out for some of the best performers from these laggards in the consumer discretionary sector:
^SPX data by YCharts.
The big gains have been spurred by a few positive economic data points, including the increased consumer spending post-lockdown, as well as improvements in airport traffic from the lows in April.
Add in the prospects of a rapid, cheap coronavirus test that doesn't have to go to a lab to be processed, and investors are piling into businesses that have seen their biggest downturns since March, but could see big gains once they're able to return to business as usual.
Prospects for these businesses may not be as rosy as investors expect, however. MGM just announced that it was laying off 18,000 workers, while United Airlines Holdings, American Airlines Group, and Delta could cut well over 50,000 workers combined, barring federal aid that requires them to keep those employees on payroll. Air traffic is still down some 70%, and the airlines are bleeding cash.
The case is the same for cruise companies, where it's even worse since the entire industry remains under a "no sail" order in the U.S. from the Centers for Disease Control that's unlikely to be lifted anytime soon.
Coronavirus tests don't guarantee a return to normal -- or profits
The volume of tests Abbott says it can produce is about 50 million per month at full capacity in October. Most of those tests (if not all) will be administered to essential personnel in healthcare and emergency responders. And it's a near-certainty that priority will be given to those in education and other essential services -- including child care, supermarkets, and agriculture -- before any hospitality or travel company gets access.
So while the prospects for a cheap, fast test are a positive, the path to using those tests for commercial enterprises is likely longer than investors may appreciate.
Earnings: Gap, Ulta Beauty deliver the goods
Nobody expected retailer Gap (NYSE: GPS) to have a big, profitable second quarter. Like most retailers, its stores were largely shut for part of the quarter, and it was already dealing with weakness as changing consumer tastes steadily eroded the once-leading apparel company. But it still impressed many investors with $3.3 billion in sales, down "only" 18%, while online sales helped it boost its same-store sales by 13%.
Gap lost $0.17 per share, but both the top and bottom lines beat expectations; analysts were expecting sales of $2.9 billion and a much bigger $0.41 loss per share on average.
Ulta Beauty (NASDAQ: ULTA) similar came into its quarterly report with low expectations; beauty products are the sort of things people don't buy as much during a global pandemic. And sales did indeed fall, down 26%, while gross margin was 27%, also much lower than last year's quarter. However, those results were within expectations, and unlike Gap, Ulta delivered a modest operating profit in the quarter.
Next week's earnings: Soup, scrap, spirits, and semiconductors
Second-quarter earnings season is starting to wrap up, but a handful of companies are set to report next week. Notable names include Jack Daniel's distiller Brown-Forman and auto scrap and auction giant Copart on Sept. 2, and semiconductor giant Broadcom and packaged foods company Campbell Soup on Sept. 3.
10 stocks we like better than Carnival
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 Carnival wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of August 1, 2020
Jason Hall has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Ulta Beauty. The Motley Fool recommends Alaska Air Group, Broadcom Ltd, Carnival, Copart, Delta Air Lines, and Marriott International. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Today's big gains came after the Department of Commerce said that an important measure of personal consumer spending increased 1.9% on a seasonally adjusted basis in July. The big gains have been spurred by a few positive economic data points, including the increased consumer spending post-lockdown, as well as improvements in airport traffic from the lows in April. Like most retailers, its stores were largely shut for part of the quarter, and it was already dealing with weakness as changing consumer tastes steadily eroded the once-leading apparel company.
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Leading the charge today was Carnival (NYSE: CCL) with shares up almost 7%; along with Wynn Resorts and Alaska Air, up nearly 6%; and MGM Resorts International (NYSE: MGM) and Marriott International (NASDAQ: MAR), up more than 4%. Hospitality, travel stocks continue to lead the charge Today's big move higher for the stocks above, along with Delta Air Lines (NYSE: DAL) (which gained almost 4% today), is a continuation of a huge month. The Motley Fool recommends Alaska Air Group, Broadcom Ltd, Carnival, Copart, Delta Air Lines, and Marriott International.
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On this news, along with continued momentum from Thursday's big news that the Food and Drug Administration had approved a 15-minute COVID-19 test costing $5, investors continued to buy shares of companies seen as being big beneficiaries of fast, cheap testing. These include cruise stocks, airline stocks, and casino and hotel stocks. Hospitality, travel stocks continue to lead the charge Today's big move higher for the stocks above, along with Delta Air Lines (NYSE: DAL) (which gained almost 4% today), is a continuation of a huge month.
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Hospitality, travel stocks continue to lead the charge Today's big move higher for the stocks above, along with Delta Air Lines (NYSE: DAL) (which gained almost 4% today), is a continuation of a huge month. So while the prospects for a cheap, fast test are a positive, the path to using those tests for commercial enterprises is likely longer than investors may appreciate. The Motley Fool recommends Alaska Air Group, Broadcom Ltd, Carnival, Copart, Delta Air Lines, and Marriott International.
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5343.0
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2020-08-28 00:00:00 UTC
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Pre-Market Most Active for Aug 28, 2020 : NIO, XPEV, AAL, DB, CCL, NCLH, AAPL, UAL, ADMA, QQQ, TSLA, GE
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AAL
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https://www.nasdaq.com/articles/pre-market-most-active-for-aug-28-2020-%3A-nio-xpev-aal-db-ccl-nclh-aapl-ual-adma-qqq-tsla
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The NASDAQ 100 Pre-Market Indicator is up 42.54 to 11,968.7. The total Pre-Market volume is currently 9,211,320 shares traded.
The following are the most active stocks for the pre-market session:
NIO Inc. (NIO) is -0.7499 at $19.13, with 5,353,512 shares traded. NIO's current last sale is 147.15% of the target price of $13.
XPeng Inc. (XPEV) is +2.65 at $23.87, with 2,544,578 shares traded.
American Airlines Group, Inc. (AAL) is +0.42 at $13.70, with 932,039 shares traded. AAL's current last sale is 114.17% of the target price of $12.
Deutsche Bank AG (DB) is +0.22 at $9.95, with 784,976 shares traded. DB's current last sale is 136.3% of the target price of $7.3.
Carnival Corporation (CCL) is +0.57 at $16.69, with 567,197 shares traded. CCL's current last sale is 104.31% of the target price of $16.
Norwegian Cruise Line Holdings Ltd. (NCLH) is +0.71 at $17.36, with 487,020 shares traded. NCLH's current last sale is 108.5% of the target price of $16.
Apple Inc. (AAPL) is +3.2 at $503.24, with 408,273 shares traded. Over the last four weeks they have had 5 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2020. The consensus EPS forecast is $2.73. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
United Airlines Holdings, Inc. (UAL) is +1.39 at $37.61, with 383,278 shares traded. UAL's current last sale is 85.48% of the target price of $44.
ADMA Biologics Inc (ADMA) is +0.04 at $2.79, with 368,179 shares traded. As reported by Zacks, the current mean recommendation for ADMA is in the "strong buy range".
Invesco QQQ Trust, Series 1 (QQQ) is +0.78 at $291.83, with 345,793 shares traded. This represents a 76.94% increase from its 52 Week Low.
Tesla, Inc. (TSLA) is +68.25 at $2,307.00, with 330,281 shares traded., following a 52-week high recorded in prior regular session.
General Electric Company (GE) is +0.05 at $6.53, with 321,054 shares traded. As reported by Zacks, the current mean recommendation for GE is in the "buy range".
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines Group, Inc. (AAL) is +0.42 at $13.70, with 932,039 shares traded. AAL's current last sale is 114.17% of the target price of $12. Over the last four weeks they have had 5 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2020.
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American Airlines Group, Inc. (AAL) is +0.42 at $13.70, with 932,039 shares traded. AAL's current last sale is 114.17% of the target price of $12. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
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American Airlines Group, Inc. (AAL) is +0.42 at $13.70, with 932,039 shares traded. AAL's current last sale is 114.17% of the target price of $12. The total Pre-Market volume is currently 9,211,320 shares traded.
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American Airlines Group, Inc. (AAL) is +0.42 at $13.70, with 932,039 shares traded. AAL's current last sale is 114.17% of the target price of $12. NIO's current last sale is 147.15% of the target price of $13.
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5344.0
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2020-08-27 00:00:00 UTC
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Pre-Market Most Active for Aug 27, 2020 : NIO, CLVS, FLDM, ABT, AAL, COTY, QQQ, SQQQ, LI, CCL, NCLH, ANF
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AAL
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https://www.nasdaq.com/articles/pre-market-most-active-for-aug-27-2020-%3A-nio-clvs-fldm-abt-aal-coty-qqq-sqqq-li-ccl-nclh
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The NASDAQ 100 Pre-Market Indicator is down -11.3 to 11,960.64. The total Pre-Market volume is currently 13,203,589 shares traded.
The following are the most active stocks for the pre-market session:
NIO Inc. (NIO) is -0.61 at $19.83, with 4,871,952 shares traded., following a 52-week high recorded in prior regular session.
Clovis Oncology, Inc. (CLVS) is +0.79 at $5.75, with 1,133,068 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2020. The consensus EPS forecast is $-0.93. As reported in the last short interest update the days to cover for CLVS is 7.827453; this calculation is based on the average trading volume of the stock.
Fluidigm Corporation (FLDM) is -1.55 at $9.88, with 981,289 shares traded., following a 52-week high recorded in prior regular session.
Abbott Laboratories (ABT) is +8.16 at $111.35, with 945,262 shares traded. As reported by Zacks, the current mean recommendation for ABT is in the "buy range".
American Airlines Group, Inc. (AAL) is +0.315 at $13.10, with 833,872 shares traded. AAL's current last sale is 109.17% of the target price of $12.
Coty Inc. (COTY) is -0.16 at $3.69, with 693,877 shares traded. Business Wire Reports: Coty Inc. Reports Fiscal 2020 Fourth Quarter and Full Year Results
Invesco QQQ Trust, Series 1 (QQQ) is -0.13 at $291.83, with 539,484 shares traded., following a 52-week high recorded in prior regular session.
ProShares UltraPro Short QQQ (SQQQ) is +0.03 at $22.03, with 472,498 shares traded., following a 52-week high recorded in prior regular session.
Li Auto Inc. (LI) is -1.62 at $21.76, with 457,068 shares traded., following a 52-week high recorded in prior regular session.
Carnival Corporation (CCL) is +0.27 at $15.55, with 341,141 shares traded. CCL's current last sale is 97.19% of the target price of $16.
Norwegian Cruise Line Holdings Ltd. (NCLH) is +0.32 at $16.04, with 334,543 shares traded. NCLH's current last sale is 100.25% of the target price of $16.
Abercrombie & Fitch Company (ANF) is +1.37 at $12.50, with 327,760 shares traded. GlobeNewswire Reports: Abercrombie & Fitch Co. Reports Second Quarter Results
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines Group, Inc. (AAL) is +0.315 at $13.10, with 833,872 shares traded. AAL's current last sale is 109.17% of the target price of $12. As reported in the last short interest update the days to cover for CLVS is 7.827453; this calculation is based on the average trading volume of the stock.
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American Airlines Group, Inc. (AAL) is +0.315 at $13.10, with 833,872 shares traded. AAL's current last sale is 109.17% of the target price of $12. NIO Inc. (NIO) is -0.61 at $19.83, with 4,871,952 shares traded., following a 52-week high recorded in prior regular session.
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American Airlines Group, Inc. (AAL) is +0.315 at $13.10, with 833,872 shares traded. AAL's current last sale is 109.17% of the target price of $12. NIO Inc. (NIO) is -0.61 at $19.83, with 4,871,952 shares traded., following a 52-week high recorded in prior regular session.
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American Airlines Group, Inc. (AAL) is +0.315 at $13.10, with 833,872 shares traded. AAL's current last sale is 109.17% of the target price of $12. Fluidigm Corporation (FLDM) is -1.55 at $9.88, with 981,289 shares traded., following a 52-week high recorded in prior regular session.
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5345.0
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2020-08-27 00:00:00 UTC
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United to Cut as Many as 2,850 Pilots Without a New Stimulus Bill
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AAL
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https://www.nasdaq.com/articles/united-to-cut-as-many-as-2850-pilots-without-a-new-stimulus-bill-2020-08-27
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United Airlines Holdings (NASDAQ: UAL) said Thursday that it will furlough up to 2,850 pilots between Oct. 1 and Nov. 30 unless lawmakers in Washington come through with an extension to the payroll assistance granted in the early days of the coronavirus crisis.
United and other airlines received $25 billion in payroll support grants and loans as part of the CARES Act, and in return pledged to do no involuntary layoffs before Sept. 30. But with that deadline fast approaching, the industry is outlining its plans to shrink.
Delta Air Lines (NYSE: DAL) on Monday said it will need to furlough up to 1,941 pilots, while American Airlines Group (NASDAQ: AAL) a day later said it will need about 40,000 total job cuts, including 19,000 involuntary furloughs. American expects to let more than 1,600 pilots go.
Image source: United Airlines.
The airlines and their workers have lobbied Washington to include additional payroll support in a proposed second round of stimulus. While there is some bipartisan support for an extension, the broader bill has stalled in Congress.
Travel demand is currently running at about 30% of where it was a year ago, according to Transportation Security Administration data, and that number is expected to fall as summer vacation season ends. With the airlines running just a fraction of their pre-pandemic schedules, they can't afford to continue paying their full workforce without government help.
Still, the furlough talk carries significant risks. The airlines remain hopeful of a faster-than-anticipated return in demand, perhaps aided by better coronavirus testing or a vaccine, and had hoped to keep workers on the payroll to more quickly respond to any increase in travel.
The cuts also threaten to undo years of work by airlines to repair what has historically been a rocky relationship with labor. United's pilot union, in a letter to employees, called today's announcement "devastating news" and criticized management's handling of the crisis.
"While other airlines have chosen to reduce manpower through voluntary means, it is tragic that United has limited those options for our pilots and instead has chosen to furlough more pilots than ever before in our history," the union master executive council wrote.
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 August 1, 2020
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.
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Delta Air Lines (NYSE: DAL) on Monday said it will need to furlough up to 1,941 pilots, while American Airlines Group (NASDAQ: AAL) a day later said it will need about 40,000 total job cuts, including 19,000 involuntary furloughs. United Airlines Holdings (NASDAQ: UAL) said Thursday that it will furlough up to 2,850 pilots between Oct. 1 and Nov. 30 unless lawmakers in Washington come through with an extension to the payroll assistance granted in the early days of the coronavirus crisis. United and other airlines received $25 billion in payroll support grants and loans as part of the CARES Act, and in return pledged to do no involuntary layoffs before Sept. 30.
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Delta Air Lines (NYSE: DAL) on Monday said it will need to furlough up to 1,941 pilots, while American Airlines Group (NASDAQ: AAL) a day later said it will need about 40,000 total job cuts, including 19,000 involuntary furloughs. United Airlines Holdings (NASDAQ: UAL) said Thursday that it will furlough up to 2,850 pilots between Oct. 1 and Nov. 30 unless lawmakers in Washington come through with an extension to the payroll assistance granted in the early days of the coronavirus crisis. The Motley Fool recommends Delta Air Lines.
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Delta Air Lines (NYSE: DAL) on Monday said it will need to furlough up to 1,941 pilots, while American Airlines Group (NASDAQ: AAL) a day later said it will need about 40,000 total job cuts, including 19,000 involuntary furloughs. United Airlines Holdings (NASDAQ: UAL) said Thursday that it will furlough up to 2,850 pilots between Oct. 1 and Nov. 30 unless lawmakers in Washington come through with an extension to the payroll assistance granted in the early days of the coronavirus crisis. "While other airlines have chosen to reduce manpower through voluntary means, it is tragic that United has limited those options for our pilots and instead has chosen to furlough more pilots than ever before in our history," the union master executive council wrote.
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Delta Air Lines (NYSE: DAL) on Monday said it will need to furlough up to 1,941 pilots, while American Airlines Group (NASDAQ: AAL) a day later said it will need about 40,000 total job cuts, including 19,000 involuntary furloughs. United Airlines Holdings (NASDAQ: UAL) said Thursday that it will furlough up to 2,850 pilots between Oct. 1 and Nov. 30 unless lawmakers in Washington come through with an extension to the payroll assistance granted in the early days of the coronavirus crisis. American expects to let more than 1,600 pilots go.
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5346.0
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2020-08-27 00:00:00 UTC
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Why Airline Shares Are Higher Today
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AAL
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https://www.nasdaq.com/articles/why-airline-shares-are-higher-today-2020-08-27
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What happened
Airline shares got a lift on Thursday after U.S. health officials approved a 15-minute COVID-19 test from Abbott Laboratories. Airlines have suffered due to the pandemic's impact on travel demand, and in recent weeks any potentially positive development in the fight against the virus has caused shares to rally.
Shares of American Airlines Group (NASDAQ: AAL) led the sector higher on Thursday, peaking 11.5% higher, while shares of United Airlines Holdings (NASDAQ: UAL) were up as high as 10.9%. Spirit Airlines (NYSE: SAVE) and JetBlue Airways (NASDAQ: JBLU) were trading up 8% apiece, and Delta Air Lines (NYSE: DAL) and Southwest Airlines (NYSE: LUV) were both up 7%.
The entire sector gave back some of those gains as the morning went on, but all of these airlines were up between 4% and 6% as of 11:30 a.m. EDT.
So what
Airlines, and their investors, have struggled in 2020, with second-quarter revenue falling by about 80% year over year across the industry due to a pandemic-related travel fall-off. There's no quick fix for what ails the industry, but a COVID-19 vaccine or at least better testing to allow for quick diagnosis would be a step in the right direction.
The stocks were up on Thursday on news that Abbott has been given the green light to sell an inexpensive COVID-19 test that returns a result in 15 minutes without sending the sample to a lab. The company intends to manufacture 50 million of the tests per month by October, which could make it easier for schools and workplaces to safely reopen and for economic activity to normalize.
Image source: Getty Images.
It's easy to see how such a test could also be employed by airlines to help reassure worried travelers. With the airlines currently expecting travel demand to remain sluggish through 2021 and into 2022, and the stocks priced accordingly, any scientific advancement that has potential to shorten the time frame is reason for investors to cheer.
Airline stocks and the broader markets also were rallying on comments from Federal Reserve Chairman Jerome Powell indicating the Fed intends to continue to do what it can to try to avoid a pandemic-related recession.
The individual shares on Thursday arguably climbed proportionately to the risks each company faces from a prolonged downturn. American has the most debt in the industry, and is among the most vulnerable of U.S. carriers, while Southwest and Delta are seen as less of a risk, and for that reason have not seen their shares fall to the extent American's stock has.
Enthusiasm for Delta shares might also be tempered on Thursday by reports that say the airline could be forced to come up with $300 million to repay a loan it backed for onetime Brazilian partner Gol Linhas Aereas Inteligentes. Prior to the pandemic, Delta had been at the forefront of an effort by U.S. airlines to create financial ties to international partners, but that effort has come back to bite the company during the downturn.
Now what
The Abbott test is undoubtedly good news and should be celebrated, but investors need to be careful not to get ahead of themselves.
Current U.S. travel volumes are down 70% year over year, but even at these low levels, giving the test to every passenger coming through the airports would soak up one-third of the number of tests Abbott hopes to produce per month. Given the other, arguably more pressing, demand for these tests from schools, hospitals, and workplaces, it's hard to imagine the development will impact air demand anytime soon.
For now, the calculus surrounding investing in the airlines has not changed. The companies all have healthy cash cushions to help survive a prolonged downturn, but there is little they can do to stimulate demand and likely are in for a turbulent ride for many quarters to come.
Given the risks, investors should focus on top companies including Southwest and Delta, and ignore the more volatile, and riskier, stocks.
10 stocks we like better than JetBlue Airways
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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.
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*Stock Advisor returns as of August 1, 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.
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Shares of American Airlines Group (NASDAQ: AAL) led the sector higher on Thursday, peaking 11.5% higher, while shares of United Airlines Holdings (NASDAQ: UAL) were up as high as 10.9%. With the airlines currently expecting travel demand to remain sluggish through 2021 and into 2022, and the stocks priced accordingly, any scientific advancement that has potential to shorten the time frame is reason for investors to cheer. Airline stocks and the broader markets also were rallying on comments from Federal Reserve Chairman Jerome Powell indicating the Fed intends to continue to do what it can to try to avoid a pandemic-related recession.
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Shares of American Airlines Group (NASDAQ: AAL) led the sector higher on Thursday, peaking 11.5% higher, while shares of United Airlines Holdings (NASDAQ: UAL) were up as high as 10.9%. Spirit Airlines (NYSE: SAVE) and JetBlue Airways (NASDAQ: JBLU) were trading up 8% apiece, and Delta Air Lines (NYSE: DAL) and Southwest Airlines (NYSE: LUV) were both up 7%. The Motley Fool recommends Delta Air Lines, JetBlue Airways, and Southwest Airlines.
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Shares of American Airlines Group (NASDAQ: AAL) led the sector higher on Thursday, peaking 11.5% higher, while shares of United Airlines Holdings (NASDAQ: UAL) were up as high as 10.9%. Spirit Airlines (NYSE: SAVE) and JetBlue Airways (NASDAQ: JBLU) were trading up 8% apiece, and Delta Air Lines (NYSE: DAL) and Southwest Airlines (NYSE: LUV) were both up 7%. See the 10 stocks *Stock Advisor returns as of August 1, 2020 Lou Whiteman owns shares of Delta Air Lines and Spirit Airlines.
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Shares of American Airlines Group (NASDAQ: AAL) led the sector higher on Thursday, peaking 11.5% higher, while shares of United Airlines Holdings (NASDAQ: UAL) were up as high as 10.9%. The stocks were up on Thursday on news that Abbott has been given the green light to sell an inexpensive COVID-19 test that returns a result in 15 minutes without sending the sample to a lab. See the 10 stocks *Stock Advisor returns as of August 1, 2020 Lou Whiteman owns shares of Delta Air Lines and Spirit Airlines.
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2020-08-27 00:00:00 UTC
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United Airlines to cut 2,850 pilot jobs without more U.S. government aid
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AAL
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https://www.nasdaq.com/articles/united-airlines-to-cut-2850-pilot-jobs-without-more-u.s.-government-aid-2020-08-27-0
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By Tracy Rucinski
CHICAGO, Aug 27 (Reuters) - United Airlines UAL.O said on Thursday it will need to cut 2,850 pilot jobs this year if the government does not extend an aid package to help airlines cover employee payroll for another six months while they weather the coronavirus pandemic.
The job cuts, released in a memo to employees and shared with the media, would take place between Oct. 1 and Nov. 30 and are significantly higher than those announced earlier this week by rivals Delta Air Lines DAL.N and American Airlines AAL.O.
"It’s important to note that our numbers are based on the current travel demand for the remainder of the year and our anticipated flying schedule, which continues to be fluid with the resurgence of COVID-19 in regions across the U.S.," United said in the memo.
United is more exposed than its peers to international travel, which is expected to take longer to rebound from the pandemic.
Airlines received $25 billion in U.S. government stimulus funds in March meant to cover payrolls and protect jobs through September. As the money runs out without a travel recovery in sight, airlines and unions have lobbied Washington for another $25 billion, but talks have stalled as Congress has struggled to reach agreement on a broader coronavirus assistance package.
Under the terms of the first package, they cannot make any involuntary job cuts until Oct. 1.
(Reporting by Tracy Rucinski Editing by Chizu Nomiyama and Marguerita Choy)
((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.
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The job cuts, released in a memo to employees and shared with the media, would take place between Oct. 1 and Nov. 30 and are significantly higher than those announced earlier this week by rivals Delta Air Lines DAL.N and American Airlines AAL.O. "It’s important to note that our numbers are based on the current travel demand for the remainder of the year and our anticipated flying schedule, which continues to be fluid with the resurgence of COVID-19 in regions across the U.S.," United said in the memo. As the money runs out without a travel recovery in sight, airlines and unions have lobbied Washington for another $25 billion, but talks have stalled as Congress has struggled to reach agreement on a broader coronavirus assistance package.
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The job cuts, released in a memo to employees and shared with the media, would take place between Oct. 1 and Nov. 30 and are significantly higher than those announced earlier this week by rivals Delta Air Lines DAL.N and American Airlines AAL.O. By Tracy Rucinski CHICAGO, Aug 27 (Reuters) - United Airlines UAL.O said on Thursday it will need to cut 2,850 pilot jobs this year if the government does not extend an aid package to help airlines cover employee payroll for another six months while they weather the coronavirus pandemic. Under the terms of the first package, they cannot make any involuntary job cuts until Oct. 1.
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The job cuts, released in a memo to employees and shared with the media, would take place between Oct. 1 and Nov. 30 and are significantly higher than those announced earlier this week by rivals Delta Air Lines DAL.N and American Airlines AAL.O. By Tracy Rucinski CHICAGO, Aug 27 (Reuters) - United Airlines UAL.O said on Thursday it will need to cut 2,850 pilot jobs this year if the government does not extend an aid package to help airlines cover employee payroll for another six months while they weather the coronavirus pandemic. As the money runs out without a travel recovery in sight, airlines and unions have lobbied Washington for another $25 billion, but talks have stalled as Congress has struggled to reach agreement on a broader coronavirus assistance package.
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The job cuts, released in a memo to employees and shared with the media, would take place between Oct. 1 and Nov. 30 and are significantly higher than those announced earlier this week by rivals Delta Air Lines DAL.N and American Airlines AAL.O. By Tracy Rucinski CHICAGO, Aug 27 (Reuters) - United Airlines UAL.O said on Thursday it will need to cut 2,850 pilot jobs this year if the government does not extend an aid package to help airlines cover employee payroll for another six months while they weather the coronavirus pandemic. "It’s important to note that our numbers are based on the current travel demand for the remainder of the year and our anticipated flying schedule, which continues to be fluid with the resurgence of COVID-19 in regions across the U.S.," United said in the memo.
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2020-08-27 00:00:00 UTC
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Where Will Airline Stocks Be in 5 Years?
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https://www.nasdaq.com/articles/where-will-airline-stocks-be-in-5-years-2020-08-27
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The COVID-19 pandemic has caused air travel demand, and airline stock prices, to plummet. And there's little reason to believe conditions will improve anytime soon.
That said, air travel isn't going to permanently disappear. And with the stocks off about 30% and 60% year to date, the sector is attracting interest from some investors looking for bargains.
I'm bearish on airlines over the next year, and bullish on them over the next decade. Exactly where they will be in the recovery process five years out is much harder to say. But here are three predictions about what commercial aviation will look like in 2025 for those weighing buying in to the sector.
Airline data by YCharts
COVID-19 will still be front of mind
Hopefully, by 2025 COVID-19 will be in the past, and although it is likely to take years for travel demand to rebound to pre-pandemic levels, most forecasters are optimistic it will not take five years.
Still, expect the scars to be visible on airline balance sheets. The U.S. airline industry has taken on more than $50 billion in new debt so far in 2020, according to Cowen & Co., and airlines are still raising cash. Add in a similar amount of government assistance -- some loans, and some backed by stock warrants -- and it is highly likely that much of whatever free cash flow the industry is generating in 2025 will be earmarked for debt reduction.
Dividends are unlikely, and stock buybacks will be limited at best. The airlines will hopefully by 2025 be in a position to take deliveries on some new planes, especially on orders where there is a penalty to pay if they do not take delivery, but few will be focused on expansion.
Investors need to view the airlines for the next few years as if they are patients recovering from serious injury. We're still in the triage phase now, but even when that is over there is still a long, painful period of rehab and recovery up ahead.
Airlines will be more focused
The decade leading up to 2020 was dedicated to empire building, with major U.S. airlines coming out of the last downturn restructured and looking to grow. That led to a series of mergers, and the survivors eager to one-up each other to try to offer the most expansive route networks by flying into second-tier international markets.
As mentioned above, debt will likely limit growth in the years to come. But I also expect management teams post-COVID to reboot entire parts of the operation, using the crisis as a reason to prune parts of the business that underperform.
Image source: Getty Images.
In late July, American Airlines Group (NASDAQ: AAL) CEO Doug Parker's comments to investors called the chance to start from scratch "one opportunity" the pandemic has provided.
"That's going to make us much more efficient as we come out of this, and we're excited about that," Parker said. "We're going to add back only what makes sense. We'll come through it more efficiently. I'm looking forward to that day when we're through all this, and we have that advantage."
Post-crisis I expect large, networked airlines American, Delta Air Lines (NYSE: DAL), and United Airlines Holdings (NASDAQ: UAL) to lean more heavily on international partners to provide global coverage, and for the entire industry to move away from trying to be a one-stop-shop for all travelers.
Fliers and investors will have new options
We are yet to have a domestic airline bankruptcy this year, and I'm optimistic that companies have raised enough cash to remain solvent through an extended downturn. Still, I'd be surprised if the landscape looks the same in five years as it does now.
Mergers among the so-called "Big Four" -- American, Delta, United, and Southwest Airlines (NYSE: LUV) -- would likely be blocked because those airlines combine to control 80% of U.S. traffic. But a reshaping of the industry is still possible.
For example, in 2020 American has partnered with both JetBlue Airways (NASDAQ: JBLU) and Alaska Air Group (NYSE: ALK) to fill gaps in its network. The company and its current management team both have a history of using M&A to consolidate. Elsewhere, discounters Frontier Airlines and Sun Country Airlines are both currently owned by private equity firms who will want to monetize their investments in the next five years, either by selling or via initial public offerings.
Expect new airlines to begin flying as well. Prior to the pandemic, Breeze Airways, led by JetBlue founder David Neeleman, had been preparing a launch. With COVID-19 leaving a glut of aircraft parked and available, other entrepreneurs and investors are likely to pounce at the first sign of a recovery.
What investors should do now
Assuming the airlines survive, there are opportunities for outsized gains from current share prices. But those gains will likely take years to materialize. Investors with a tolerance for risk should not avoid airlines, but also should keep them a small part of a diversified portfolio.
Be warned that the industry in 2025 will likely look different from today, and focus on companies best positioned to take advantage. I like Delta and Southwest because of their relatively healthy balance sheets, and because management at both companies have a good track record of innovating. Just be aware upon boarding that the destination is a long way off.
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 August 1, 2020
Lou Whiteman owns shares of Delta Air Lines. The Motley Fool recommends Alaska Air Group, Delta Air Lines, JetBlue Airways, and Southwest Airlines. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In late July, American Airlines Group (NASDAQ: AAL) CEO Doug Parker's comments to investors called the chance to start from scratch "one opportunity" the pandemic has provided. Add in a similar amount of government assistance -- some loans, and some backed by stock warrants -- and it is highly likely that much of whatever free cash flow the industry is generating in 2025 will be earmarked for debt reduction. Fliers and investors will have new options We are yet to have a domestic airline bankruptcy this year, and I'm optimistic that companies have raised enough cash to remain solvent through an extended downturn.
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In late July, American Airlines Group (NASDAQ: AAL) CEO Doug Parker's comments to investors called the chance to start from scratch "one opportunity" the pandemic has provided. Post-crisis I expect large, networked airlines American, Delta Air Lines (NYSE: DAL), and United Airlines Holdings (NASDAQ: UAL) to lean more heavily on international partners to provide global coverage, and for the entire industry to move away from trying to be a one-stop-shop for all travelers. For example, in 2020 American has partnered with both JetBlue Airways (NASDAQ: JBLU) and Alaska Air Group (NYSE: ALK) to fill gaps in its network.
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In late July, American Airlines Group (NASDAQ: AAL) CEO Doug Parker's comments to investors called the chance to start from scratch "one opportunity" the pandemic has provided. Post-crisis I expect large, networked airlines American, Delta Air Lines (NYSE: DAL), and United Airlines Holdings (NASDAQ: UAL) to lean more heavily on international partners to provide global coverage, and for the entire industry to move away from trying to be a one-stop-shop for all travelers. Elsewhere, discounters Frontier Airlines and Sun Country Airlines are both currently owned by private equity firms who will want to monetize their investments in the next five years, either by selling or via initial public offerings.
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In late July, American Airlines Group (NASDAQ: AAL) CEO Doug Parker's comments to investors called the chance to start from scratch "one opportunity" the pandemic has provided. Be warned that the industry in 2025 will likely look different from today, and focus on companies best positioned to take advantage. That's right -- they think these 10 stocks are even better buys.
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2020-08-27 00:00:00 UTC
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These Popular Robinhood Stocks May Lose 50% (or More) of Their Value
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https://www.nasdaq.com/articles/these-popular-robinhood-stocks-may-lose-50-or-more-of-their-value-2020-08-27
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What a year it's been for Wall Street. Panic and uncertainty surrounding the coronavirus disease 2019 (COVID-19) pandemic sent equities to their fastest and steepest bear market decline in history during the first quarter. But records were broken on the way back up, too, with the benchmark S&P 500 taking less than five months to reclaim fresh all-time highs.
Though volatility can be scary, it's almost always a welcome sight for long-term investors. That's because it allows patient investors to buy into high-quality companies at a perceived discount.
Image source: Getty Images.
However, volatility also attracts inexperienced investors who hope to make a quick buck in the stock market. Rarely, if ever, does the short-term strategy of chasing volatility via penny stocks work out well.
Take online investment platform Robinhood. Known best for offering free trades and gifting a small parcel of stock to users when they open accounts, Robinhood has primarily attracted millennial and/or novice investors. A quick glance at the online platform's leaderboard (i.e., the stocks most-held by members) is telling. Though you'll find a few high-quality long-term holdings, penny stocks and generally awful companies seem to satisfy many Robinhood investors.
There are three exceptionally popular holdings on Robinhood in particular that could lose 50% or more of their value.
A Tesla Model S plugged in for charging. Image source: Tesla.
Tesla
Although it's possibly the hottest stock on Wall Street at the moment, and it's the eighth-most-held one on Robinhood, electric-vehicle (EV) maker Tesla (NASDAQ: TSLA) has a mind-boggling valuation.
There are reasons for investors to be optimistic about Tesla. The company has surpassed delivery expectations in 2020 thus far. CEO Elon Musk is highly motivated and vested in the company's future, owning roughly 21% of Tesla's outstanding shares. It certainly doesn't hurt that Tesla caters to a more affluent group of auto buyers who are less likely to alter their consumption habits during economic hiccups.
But if you ask me if this group of catalysts is worth a $382 billion market cap, my answer is a resounding no.
What we've witnessed from Tesla in 2020 is a complete wipeout of what had been an unrelenting short position in the company. We've also seen short-term investors piling into the stock because they fear missing out. Even the company's announced 5-for-1 stock split has added almost 50% to its share price. None of these catalysts has any true fundamental bearing on Tesla.
Tesla has managed to create a mass-produced EV, and at one time it had early-mover advantage in this space. However, the gap in battery performance between Tesla and its peers has shrunk. Numerous well-funded competitors with decades of history behind their brands are now producing high-performance EVs. In 2018, Ford announced plans to invest $11 billion in EVs by 2022, while General Motors offered plans this March to spend $20 billion on EVs and autonomous vehicles through 2025. In other words, Tesla's runway is getting awfully crowded.
Emotional investing has proved time and again that it can only carry a company's valuation so far, and Tesla's share price could be significantly lower over the next six to 24 months.
Image source: American Airlines.
American Airlines Group
Another very popular Robinhood stock that could face some serious future downside is American Airlines Group (NASDAQ: AAL).
Whereas Tesla has a feel-good story behind its ascension, it's unclear why Robinhood investors have anointed American Airlines as the fifth-most-held stock on the platform. It may look "cheap" simply because its share price has retreated to nearly an eight-year low, but there's pretty much nothing redeeming about airline stocks -- and especially American Airlines -- at the moment.
The obvious knock against the airline industry is that we have no clue when passengers are going to return to the skies at pre-pandemic levels. A coronavirus vaccine may encourage travelers to start flying again, but it could be years before we have any semblance of normalcy for airlines. That's a big problem for a capital-intensive, low-margin industry that simply cannot sustain losses for long periods.
With regard to American Airlines, it's been able to raise cash through debt offerings. While this staves off any near-term possibility of bankruptcy, it's also ballooned the company's total debt to $40 billion. Even if American Airlines pulls through this pandemic without having to reorganize under the protection of bankruptcy, its interest payments are going to eat up a substantial portion of its operating income for a long time to come.
Plus, the financial aid American Airlines received as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act means no more share buybacks or dividends for shareholders. The company's capital return program was arguably the only reason to even consider owning American Airlines, and now it's gone.
With no guarantees that American Airlines even survives the pandemic without seeking bankruptcy protection, I believe it's fair to say that its stock could still have significant downside.
Image source: Getty Images.
Aurora Cannabis
A 50% decline might also await Canadian licensed marijuana producer Aurora Cannabis (NYSE: ACB). Aurora was actually the most-held stock on Robinhood for months, until a 1-for-12 reverse split in May apparently liquidated the holdings of any members with fewer than 12 shares prior to the split. Nowadays, it's the 11th-most-held company.
I imagine it's probably a bit of a head-scratcher as to why a fast-growing marijuana stock would even make this list. The answer to that question is twofold.
On a macro level, Canada was widely expected to lead the world with its legalization of adult-use weed in October 2018. However, Health Canada delayed the launch of high-margin derivative products by a couple of months. Meanwhile, regulators in select provinces have struggled to review and assign dispensary store licenses. These issues mean that Aurora Cannabis has had to deal with supply shortages in some provinces and major bottlenecks in others.
On a company-specific basis, Aurora has partially come to terms with its problems. A revamped management team has slashed costs and reworked its debt covenant to the point that the company may not default later this year. To avoid default, Aurora must produce positive adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) by fiscal Q1 2021.
However, Aurora Cannabis' cash position is still a concern, and the company has had few avenues with which to raise capital beyond selling common stock. Aurora has been a serial diluter of its shareholders over the past four years.
What's more, the company is lugging around $2.42 billion Canadian in goodwill. Aurora grossly overpaid for most of its acquisitions and will likely be required to take multiple writedowns in the foreseeable future. These impairment charges could be the catalyst that pulls the rug out from beneath the company's shareholders.
10 stocks we like better than Aurora Cannabis 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 Aurora Cannabis 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 August 1, 2020
Sean Williams 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.
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American Airlines Group Another very popular Robinhood stock that could face some serious future downside is American Airlines Group (NASDAQ: AAL). Panic and uncertainty surrounding the coronavirus disease 2019 (COVID-19) pandemic sent equities to their fastest and steepest bear market decline in history during the first quarter. Known best for offering free trades and gifting a small parcel of stock to users when they open accounts, Robinhood has primarily attracted millennial and/or novice investors.
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American Airlines Group Another very popular Robinhood stock that could face some serious future downside is American Airlines Group (NASDAQ: AAL). Though you'll find a few high-quality long-term holdings, penny stocks and generally awful companies seem to satisfy many Robinhood investors. Aurora Cannabis A 50% decline might also await Canadian licensed marijuana producer Aurora Cannabis (NYSE: ACB).
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American Airlines Group Another very popular Robinhood stock that could face some serious future downside is American Airlines Group (NASDAQ: AAL). Tesla Although it's possibly the hottest stock on Wall Street at the moment, and it's the eighth-most-held one on Robinhood, electric-vehicle (EV) maker Tesla (NASDAQ: TSLA) has a mind-boggling valuation. Whereas Tesla has a feel-good story behind its ascension, it's unclear why Robinhood investors have anointed American Airlines as the fifth-most-held stock on the platform.
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American Airlines Group Another very popular Robinhood stock that could face some serious future downside is American Airlines Group (NASDAQ: AAL). Image source: American Airlines. The company's capital return program was arguably the only reason to even consider owning American Airlines, and now it's gone.
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2020-08-27 00:00:00 UTC
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American Airlines: Will the Balloon Stay Up?
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https://www.nasdaq.com/articles/american-airlines%3A-will-the-balloon-stay-up-2020-08-27
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Think of American Airlines (NYSE:AAL) and AAL stock as a leaky balloon, and cash as the air in that balloon.
Source: GagliardiPhotography / Shutterstock.com
The company continues to burn cash, although at a decreasing rate. The leak caused it to burn through cash it was given under the CARES Act. American is now going through its loans.
Emergency borrowing and CARES Act funding raised American’s cash position to $10.3 billion by the end of June. At the burn rate being reported then, however, that cash would run out by next March.
The failure to contain the virus over the summer means emergency surgery is required. The airline is now throwing people overboard. Some 19,000 jobs will be gone by October 1 and service will be suspended to 15 cities.
Employment at American will be 30% lower in October than it was in March.
Will It Be Enough for AAL Stock?
There are now two questions for investors. Will these actions be enough to stabilize the company, and what will be left when the pandemic eases?
30 Dividend Stocks to Buy Now for 20 Years of Income Growth
AAL stock was due to open Aug. 27 at $13/share. That’s a market cap of $6.5 billion for a company that had revenue of over $47 billion in 2019. But the stock is no bargain. Revenue for the June quarter came in at $1.62 billion. That’s down by 87% from the previous June’s $11.9 billion.
American next reports results Oct. 22. The average revenue estimate for the current quarter is $2.8 billion, with $4.7 billion of revenue expected for the December quarter. Analysts believe the airline is pulling out of its dive. But can it, while the pandemic still rages, with a second wave expected in the fall?
American is doing creative things to bring passengers back. It’s spraying down the inside of planes before each trip. It’s quietly eliminating change fees for some business travelers, hoping that will spur reservations. It’s extending travel waivers and serving more food in its airport lounges.
The problem is that none of these moves address the real danger of flying. If one passenger comes on who is shedding virus but has no symptoms, nearly everyone on the plane may become infected on the subsequent flight. The famous Purdue illustration of a single passenger infecting everyone around them resonates.
Who is Buying?
Despite the problems, analysts are still recommending American Airlines stock to investors.
Raymond James analyst Savanthi Syth gave the stock a “market perform” rating late last month, six weeks after giving it an “underperform” rating. The stock’s fall from $20/share to $12/share changed minds.
There’s also the hope of a second bail-out. The industry wants another $25 billion. At least 16 Republican Senators want to give it to them. New aid would cover remaining jobs through the end of next March. But no aid will come unless both parties agree to a complete package. The two sides remain far apart.
The Bottom Line
What looked in January like a solid investment at $29 per share now looks like a speculation at $13.
The administration has tried to keep American flying with cash. But its failure to control the virus means that cash continues to burn. Even if American survives, it will be at least 30% smaller than it was. Its ability to generate revenue will be 30% lower, its potential earnings will be 30% lower.
That may be a bet worth making, but there are surer things in the current market. There are companies that are making money you can invest in with confidence. Cash is also an asset.
With all those caveats, I’m packing my bags as soon as it’s safe. You’re free to speculate on when that is.
Dana Blankenhorn has been a financial and technology journalist since 1978. He is the author of the environmental thriller Bridget O’Flynn and the Bear, available at the Amazon Kindle store. Write him at danablankenhorn@gmail.com or follow him on Twitter at @danablankenhorn. As of this writing he owned no shares in companies mentioned in this story.
The post American Airlines: Will the Balloon Stay Up? appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Think of American Airlines (NYSE:AAL) and AAL stock as a leaky balloon, and cash as the air in that balloon. Will It Be Enough for AAL Stock? 30 Dividend Stocks to Buy Now for 20 Years of Income Growth AAL stock was due to open Aug. 27 at $13/share.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Think of American Airlines (NYSE:AAL) and AAL stock as a leaky balloon, and cash as the air in that balloon. Will It Be Enough for AAL Stock? 30 Dividend Stocks to Buy Now for 20 Years of Income Growth AAL stock was due to open Aug. 27 at $13/share.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Think of American Airlines (NYSE:AAL) and AAL stock as a leaky balloon, and cash as the air in that balloon. Will It Be Enough for AAL Stock? 30 Dividend Stocks to Buy Now for 20 Years of Income Growth AAL stock was due to open Aug. 27 at $13/share.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Think of American Airlines (NYSE:AAL) and AAL stock as a leaky balloon, and cash as the air in that balloon. Will It Be Enough for AAL Stock? 30 Dividend Stocks to Buy Now for 20 Years of Income Growth AAL stock was due to open Aug. 27 at $13/share.
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2020-08-26 00:00:00 UTC
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How Airlines Are Ensuring Passenger Safety
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https://www.nasdaq.com/articles/how-airlines-are-ensuring-passenger-safety-2020-08-26
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In this episode of MarketFoolery, Chris Hill chats with Motley Fool analyst Bill Barker about the latest news from Wall Street. They talk about the tool in airlines' arsenal to combat COVID-19 and what movie theaters are planning in order to reopen safely. Finally, they answer listeners' questions about portfolio management and much more.
To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center. To get started investing, check out our quick-start guide to investing in stocks. A full transcript follows the video.
10 stocks we like better than Walmart
When investing geniuses David and Tom Gardner have an investing 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 Walmart 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 2/1/20
This video was recorded on August 24, 2020.
Chris Hill: It's Monday, August 24th. Welcome to MarketFoolery. I'm Chris Hill. With me today kicking off the week, it's Bill Barker. Thanks for being here.
Bill Barker: Thanks for having me.
Hill: We are going to dip into the Fool mailbag, but we're going to talk about the business of safety, and we're going to start with air travel.
The airline stocks are up this morning, because the EPA has given American Airlines (NASDAQ: AAL) the green light to use a new surface coating that kills the coronavirus. EPA officials say the coating inactivates viruses and bacteria within two hours and is effective for up to seven days. This comes on the heels of a Sunday, which according to the TSA, was the second-most traveled day since the pandemic began. Still down more than 60% year-over-year, but trending upward. And this makes sense to me that American Airlines, Southwest Airlines (NYSE: LUV), Delta, they're all up 5% or more.
Barker: Yeah. I think it's probably more on the basis of the data on how many people are flying than this EPA announcement possibly. That having only been granted to American Airlines. And it raises some questions, in that, American Airlines is allowed to use this in the state of Texas; that's who has been granted the exemption. And so, they're not allowed to apply it outside of Texas. And you know, I just don't know that there's enough detail on what this is to get that excited about it, specifically. It is in the news; hopefully it's a safe thing to apply. But the fact that it's only being granted to Texas makes one ask a few questions about just why is that? So, anyway, good news for airlines that more people are choosing to fly.
And I think that as people get more comfortable with the safety protocols that the airline is mandating, and, you know, all use them, that will lead to more travelers.
Hill: You have to assume though, that some sort of parameters will be set up in terms of testing, whether it's expanding American Airlines ability to do this outside of Texas or, I mean, you know, if it's just being done in Texas. I have to believe Southwest Airlines is calling up the EPA, because they do a fair amount of business in Texas as well.
Barker: And Delta. Yeah. Well, I think that if it's a useful thing and it's, I think, being used to clean some of the public spaces in the airports as well as used on the planes, then if it's something which should be applied in those circumstances than it might have greater application elsewhere as well. Of course, the perception and the reality of what is known about the transmission of COVID evolves. And I think my experience is to be more concerned with things that you can breathe and the things that you touch. And I think that's consistent with what's out there.
There are still, I think, CDC evaluations that it may be possible to contract it by touching something and then touching your mouth, but it's far more difficult to get it that way. I think it's really the breathing on their airlines that's the greatest concern, and will continue to be.
Hill: I agree with that. Although, I do think that, for lack of a better term, there's a social pressure at work here. So, the extent to which people are reluctant to wear a mask all the time, it seems like this is one of those things that to the extent that they see how seriously the airlines themselves are taking this, they see the cleaning happening in the airports and on the planes. Yeah, this is something that is contracted much more through breathing and moisture than it is through surface contact, but it seems like it can -- I don't want to say, it can only help, but it seems 99%, like, [laughs] one of those things that can only help.
Barker: Yeah, I think part of the messaging will continue to be look at how seriously we're taking this. As the rapid tests become available, I'm sure airlines would be one of the places that get their hands on that quickly. So, better days ahead, but still -- you know, have you flown, have you made plans to fly?
Hill: No. But I am probably going to be making plans to fly in the near future. Heading up to Massachusetts to see my family.
Barker: Is that in the near future you're going to see them or near future make the reservation?
Hill: Both.
Barker: OK.
Hill: I'll let you know how it goes. [laughs]
Barker: [laughs] All right. I'll be going up to Massachusetts next week, but I'll be driving, so...
Hill: I'll get there before you. [laughs]
Barker: That's because I got to move a child to college, so there is stuff.
Hill: Ah, that's true. Yeah.
Barker: Yeah.
Hill: Yeah, it's just going to be me traveling; so not as much stuff. Let's move on to the entertainment industry. The three largest movie theater chains in America; AMC, Cinemark and Cineworld have teamed up to create a health initiative called Cinema Safe. This initiative follows guidelines from the CDC and the plan includes mandatory mask-wearing in the theaters, social distancing, reduced seating capacity in the theaters. And this is their plan to open theaters back up. And I'm hard-pressed to see a misstep here; at least in terms of the steps that the movie theater chains are taking. They seem to be, again, very serious about this, very thoughtful about this.
And as they look to expand opening up this coming weekend, this past weekend, they got an encouraging sign in terms of the new Russell Crowe movie and, sort of, how that did at the box office.
Barker: So, the theaters, in contrast to the airlines -- and this is, sort of, you know, another version of the same story of what people are looking forward to going back to and what steps are necessary. The last misstep by the theaters, I can't remember which one it was, going to have optional, but encouraged mask-wearing, and then reversed course on that pretty quickly. So, the long term, you look at the long-term charts for the theaters, it's down and to the right. As time goes by, the stocks go further and further down as, really, you know, streaming and Netflix and large screens in the home become more and more persuasive competitors to theaters. And that trend is going to continue this.
If you look at the airline stocks, it's highly cyclical. They go way up, they go way down, when there's -- you know, after 9/11, after the last recession, they go down perhaps to zero, in the case of American Airlines, which went bankrupt. We're in another one of those cycles with airlines. And so, it's true that American Airlines you could've got for $13 back in the 80s, and you can get it for $13 today, but it's visited some more fascinating high points in between, and more disastrous low points, whereas the theaters are just, sort of, on the way down over the long term.
And these are difficult times for them, but I think that the resurgence, if there is one, in people going in the near term will be, you know, a pause in what is going to continue to be an almost impossible competition with the home. I say that knowing how much that hurts you, because you are -- [laughs] whereas, I think, in our youth, it was probably a fair fight as to who went to more movies; today you're destroying me. And for the last number of years.
Hill: I hear everything you're saying about, sort of, the -- and I'm not using this as a, hey, let's rush out and buy shares of AMC Entertainment or Cinemark. That being said, if you're the studios, if you're Disney, if you're Sony, if you're Paramount, you want this business to come back, you like the business model that you have right now of, we pay to make these movies, they go to theaters for some amount of time, you know, that we get several bites at the apple.
Also, this past weekend we had -- there was, like, the DC Comic fan event. So, we got new trailers for the Wonder Woman sequel, for the Batman movie which is coming next year. So, there is excitement building, I think, when it comes to going back to theaters. I think, as we've said about other companies in other industries in the past, this can be a profitable business, it may just end up being a smaller business. We've seen this with retail. You know, this was the story for basically forever with Barnes & Noble, you look at the Barnes & Noble business. And you look at their locations, some of their locations are insanely profitable, but a lot of them weren't. And so, you know, that was the thing that was said about Barnes & Noble for many years. Like, well, this could be a profitable business and a good stock to hold, it would just be a smaller company. I think that's where we're probably headed with movie theaters, because I just don't think, you know, as big as your screen can get in your home, nothing is going to replace an IMAX screen or even just like a basic movie theater screen.
Barker: Did you see the preview for the Batman movie?
Hill: I did, yes.
Barker: Yeah, we are getting back to a little bit of the ultraviolence in this one it looks like.
Hill: [laughs] It had a little Clockwork Orange flavor to it, yeah, it kind of did.
Barker: [laughs] And there a lot of Batman fans that are, you know, you've got your 1966 Batman show, that's a great Batman. But a Batman who's slugging somebody in the face repeatedly, who's probably already unconscious, there are fans for that Batman, too. And [laughs] they're going to be able, hopefully in the theaters, and if not in the theaters on their big screens at home, be able to appreciate that version of Batman who is on his way. Yeah, I think these are the movies that we now think of as having the future in the theater.
Because if you're like, hey, I don't know what to do, let's just go to the movie theater and see what's playing there, and what's playing there is some Russell Crowe movie that I've never heard of, this week. I'm a big fan of Russell Crowe, but I don't know anything about this movie. I don't know how many of those movies are going to have great lives in theaters. The big tentpole movies still -- it feels like that destination of thing, communal act, opening night, opening week, to go to the -- you know, they're largely owned by Disney; Star Wars and Marvel, DC has also got some of them, and Nolan with the Tenet, there's still room for a few other franchises, but the romcoms and things are mostly going to have their lives on Netflix I would imagine.
Hill: I think that's probably right. Our email address is MarketFoolery@Fool.com. Question from Alex in California. He writes, "I started following The Motley Fool back in 2016, which gave me the confidence to dip my toes into the market. One of the first stocks I bought was Tesla at around $300/share. As Tesla's meteoric run continues, I've seen this initially small position grow to over 40% of my portfolio. While I, obviously, love the returns on my initial investment and think the pending stock split will only fuel the stock to go higher, I wonder if I should think about realizing some of these gains and trimming my position a bit? I definitely don't want to get off the great Tesla ride altogether, but I do think 40% of my total portfolio in one stock is very foolish. What do you think?"
Barker: With the immediate caveat, we don't really give individual advice here, etc., etc., etc. Yeah, have a plan. What is your plan? The Tesla stock started the year at $400-and-change. I think one thing that investors have today that they didn't have at the beginning of the year, other than much higher stock prices on some stocks like Tesla, is also the personal experience of having gone through March and knowing a little bit more about their risk tolerance. I would say that if you made it through March and you know your risk tolerance better, it doesn't mean that you really have seen the biggest market decline you're likely to see in the next few years, because the recovery was so rapid and the turnaround so dramatic that you shouldn't expect it being able to ride out a month or two, which is what happened in this case, is the only thing that's going to happen in the future.
Now, Tesla was $430, give yourself 50% returns on that stock for the year; that's a great year for a stock. The stock could finish the year at $650/share and have had a great year, up 50%. Well, that's losing two-thirds of your return, you know, is that something, just mentally, that stock, any stock, you know, if you lose two-thirds of it, are you going to cherish the 50% you made during the year, are you going to be kicking yourself, you're going to say, I knew that could happen? I can't tell you whether Tesla is going to ever go back down to some $600 a share, but I think certainly, it's been such a good ride, you know, if you don't want to take on the risk of losing 20% of your portfolio in a not-hard-to-imagine situation of Tesla being cut in half -- cut in half, it's $1,000. It's still up 100% for the year, you know, just work through your mental risk tolerance. I think it's a great question, great time to be able to sell something that you may have gotten more returns from than you ever thought you were going to in one year.
Hill: Yeah, I think my two questions for Alex or anyone in this position; and thank you for pointing out, we could be talking about any stock here. The question is about Tesla, but certainly there are plenty of stocks that have had this type of run, and this type of journey in 2020. I think my two questions for anyone in this position are, how are you sleeping? Because [laughs] if you're legitimately losing sleep over this, there's probably an indication. But then the second question is, what are you buying? What are you doing with that if you decide, you know what, I'm going to take, I'm going to trim my position in this stock? Maybe you're just parking it in cash, maybe you actually have a watchlist of other stocks that you're looking to start a position in. But you want to be able to answer both those questions; and particularly the second one.
Barker: Yeah, I think it's, have a plan. If you didn't come into this year, didn't come into today, whatever it is, with a plan, just have a plan. If your plan was, I want to see what can grow to be 50%, 80% of my portfolio, then stick to your plan. I wouldn't recommend that plan, but if objectively you're thinking like, I would never let something grow to be greater than a certain percent of my portfolio, then that's a very, very typical plan to trim something when it gets to be larger than whatever percent you designate. Now, the Tesla story may have changed so much during the year, you never thought things were going to be this good, I don't know that that's the case with the operation of the company, it's having a good year, but I don't know that its fundamental story has changed as much as the stock price has changed.
Hill: Bill Barker, always good talking to you; thanks for being here.
Barker: Thanks for having me.
Hill: As always, people on the program may have interests in the stocks they talk about, and The Motley Fool may have formal recommendations for or against, so don't buy or sell stocks based solely on what you hear.
That's going to do it for this edition of MarketFoolery. The show is mixed by Dan Boyd. I'm Chris Hill. Thanks for listening. We'll see you tomorrow.
Bill Barker owns shares of Walt Disney. Bill Barker is an employee of Motley Fool Asset Management, a separate, sister company of The Motley Fool, LLC. The views of Bill Barker and Motley Fool Asset Management are not the views of The Motley Fool, LLC and should not be taken as such. Chris Hill owns shares of Walt Disney. The Motley Fool owns shares of and recommends Netflix, Tesla, and Walt Disney. The Motley Fool recommends Delta Air Lines and Southwest Airlines and recommends the following options: long January 2021 $60 calls on Walt Disney and short October 2020 $125 calls on Walt Disney. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The airline stocks are up this morning, because the EPA has given American Airlines (NASDAQ: AAL) the green light to use a new surface coating that kills the coronavirus. In this episode of MarketFoolery, Chris Hill chats with Motley Fool analyst Bill Barker about the latest news from Wall Street. The three largest movie theater chains in America; AMC, Cinemark and Cineworld have teamed up to create a health initiative called Cinema Safe.
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The airline stocks are up this morning, because the EPA has given American Airlines (NASDAQ: AAL) the green light to use a new surface coating that kills the coronavirus. The views of Bill Barker and Motley Fool Asset Management are not the views of The Motley Fool, LLC and should not be taken as such. The Motley Fool owns shares of and recommends Netflix, Tesla, and Walt Disney.
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The airline stocks are up this morning, because the EPA has given American Airlines (NASDAQ: AAL) the green light to use a new surface coating that kills the coronavirus. I think one thing that investors have today that they didn't have at the beginning of the year, other than much higher stock prices on some stocks like Tesla, is also the personal experience of having gone through March and knowing a little bit more about their risk tolerance. Now, the Tesla story may have changed so much during the year, you never thought things were going to be this good, I don't know that that's the case with the operation of the company, it's having a good year, but I don't know that its fundamental story has changed as much as the stock price has changed.
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The airline stocks are up this morning, because the EPA has given American Airlines (NASDAQ: AAL) the green light to use a new surface coating that kills the coronavirus. Barker: OK. Hill: I'll let you know how it goes. Yeah, I think these are the movies that we now think of as having the future in the theater.
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5352.0
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2020-08-26 00:00:00 UTC
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Wage talks with Kumba Iron Ore hit deadlock, union says
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AAL
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https://www.nasdaq.com/articles/wage-talks-with-kumba-iron-ore-hit-deadlock-union-says-2020-08-26
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Adds Kumba Iron Ore comment
JOHANNESBURG, Aug 26 (Reuters) - South Africa's National Union of Mineworkers (NUM) on Wednesday said that wage negotiations with Kumba Iron Ore KIOJ.J, owned by Anglo American AAL.L, were deadlocked and the union had declared a dispute, a move that is one step short of a strike.
NUM, the majority union at Kumba, said the company had agreed a wage increase of 8% for the lowest-paid workers and 6.5% for the highest-paid, but the two parties had disagreed over sick leave.
"The company policy on sick leave provides workers with 120 days. To our dismay, in a round of negotiations, the company wants to do away with the benefit," the NUM said in a statement.
The union's declaration of a dispute means that a protected strike could go ahead if conciliation talks between the parties mediated by the Commission for Conciliation, Mediation and Arbitration fail to break the impasse.
Kumba, which has mining operations in the Northern Cape province and a port operation in Saldanha Bay, said it was continuing negotiations with NUM.
"We trust that we will be able to reach an amicable solution soon, which will be in the best interest of both the employees and the company," Kumba Iron Ore said in an emailed statement.
Negotiations with the two other unions, the Association of Mineworkers and Construction Union (AMCU) and Solidarity, which are representated at Kumba's operations, have been concluded.
(Reporting by Tanisha Heiberg; Editing by David Goodman and Barbara Lewis)
((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.
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Adds Kumba Iron Ore comment JOHANNESBURG, Aug 26 (Reuters) - South Africa's National Union of Mineworkers (NUM) on Wednesday said that wage negotiations with Kumba Iron Ore KIOJ.J, owned by Anglo American AAL.L, were deadlocked and the union had declared a dispute, a move that is one step short of a strike. NUM, the majority union at Kumba, said the company had agreed a wage increase of 8% for the lowest-paid workers and 6.5% for the highest-paid, but the two parties had disagreed over sick leave. "We trust that we will be able to reach an amicable solution soon, which will be in the best interest of both the employees and the company," Kumba Iron Ore said in an emailed statement.
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Adds Kumba Iron Ore comment JOHANNESBURG, Aug 26 (Reuters) - South Africa's National Union of Mineworkers (NUM) on Wednesday said that wage negotiations with Kumba Iron Ore KIOJ.J, owned by Anglo American AAL.L, were deadlocked and the union had declared a dispute, a move that is one step short of a strike. "The company policy on sick leave provides workers with 120 days. "We trust that we will be able to reach an amicable solution soon, which will be in the best interest of both the employees and the company," Kumba Iron Ore said in an emailed statement.
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Adds Kumba Iron Ore comment JOHANNESBURG, Aug 26 (Reuters) - South Africa's National Union of Mineworkers (NUM) on Wednesday said that wage negotiations with Kumba Iron Ore KIOJ.J, owned by Anglo American AAL.L, were deadlocked and the union had declared a dispute, a move that is one step short of a strike. NUM, the majority union at Kumba, said the company had agreed a wage increase of 8% for the lowest-paid workers and 6.5% for the highest-paid, but the two parties had disagreed over sick leave. Negotiations with the two other unions, the Association of Mineworkers and Construction Union (AMCU) and Solidarity, which are representated at Kumba's operations, have been concluded.
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Adds Kumba Iron Ore comment JOHANNESBURG, Aug 26 (Reuters) - South Africa's National Union of Mineworkers (NUM) on Wednesday said that wage negotiations with Kumba Iron Ore KIOJ.J, owned by Anglo American AAL.L, were deadlocked and the union had declared a dispute, a move that is one step short of a strike. "We trust that we will be able to reach an amicable solution soon, which will be in the best interest of both the employees and the company," Kumba Iron Ore said in an emailed statement. Negotiations with the two other unions, the Association of Mineworkers and Construction Union (AMCU) and Solidarity, which are representated at Kumba's operations, have been concluded.
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5353.0
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2020-08-26 00:00:00 UTC
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White House says Trump could act unilaterally to avoid U.S. airline layoffs
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AAL
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https://www.nasdaq.com/articles/white-house-says-trump-could-act-unilaterally-to-avoid-u.s.-airline-layoffs-2020-08-26-0
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Adds airline shares
WASHINGTON, Aug 26 (Reuters) - President Donald Trump could take executive action to avoid massive layoffs at U.S. airlines, while the coronavirus pandemic weighs on air travel and talks on a new COVID-19 stimulus bill remain stalled in Congress, White House Chief of Staff Mark Meadows said on Wednesday.
"We're looking at other executive actions," Meadows said in an online interview with Politico. "If Congress is not going to work, this president is going to get to work and solve some problems. So hopefully, we can help out the airlines and keep some of those employees from being furloughed."
Airline shares were lower in early trading .DJUSAR.
His remarks came a day after American Airlines AAL.O said its workforce will shrink by 40,000, including 19,000 involuntary cuts, in October without an extension of government aid.
Meadows said he has spoken to American Airlines, as well as United Airlines UAL.O, which has warned that 36,000 jobs are on the line, and to Delta Air Lines DAL.N, which announced furloughs of nearly 2,000 pilots on Monday.
"So we've raised this issue. It would take a CARES package, I believe, to do it," Meadows said, referring to a $3 trillion coronavirus relief package that Congress passed earlier this year.
Talks between Meadows, Treasury Secretary Steven Mnuchin, House of Representatives Speaker Nancy Pelosi and Senate Democratic leader Chuck Schumer ended in early August, with top Democrats and the administration far apart on new legislation. Meadows told Politico that he is not optimistic that negotiations will restart soon.
(Reporting by David Morgan Editing by Chizu Nomiyama and Alistair Bell)
((david.morgan@thomsonreuters.com; +1 (202) 898 8326; twitter.com/dmorganreuters; Reuters Messaging: david.morgan.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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His remarks came a day after American Airlines AAL.O said its workforce will shrink by 40,000, including 19,000 involuntary cuts, in October without an extension of government aid. Adds airline shares WASHINGTON, Aug 26 (Reuters) - President Donald Trump could take executive action to avoid massive layoffs at U.S. airlines, while the coronavirus pandemic weighs on air travel and talks on a new COVID-19 stimulus bill remain stalled in Congress, White House Chief of Staff Mark Meadows said on Wednesday. Talks between Meadows, Treasury Secretary Steven Mnuchin, House of Representatives Speaker Nancy Pelosi and Senate Democratic leader Chuck Schumer ended in early August, with top Democrats and the administration far apart on new legislation.
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His remarks came a day after American Airlines AAL.O said its workforce will shrink by 40,000, including 19,000 involuntary cuts, in October without an extension of government aid. Adds airline shares WASHINGTON, Aug 26 (Reuters) - President Donald Trump could take executive action to avoid massive layoffs at U.S. airlines, while the coronavirus pandemic weighs on air travel and talks on a new COVID-19 stimulus bill remain stalled in Congress, White House Chief of Staff Mark Meadows said on Wednesday. "We're looking at other executive actions," Meadows said in an online interview with Politico.
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His remarks came a day after American Airlines AAL.O said its workforce will shrink by 40,000, including 19,000 involuntary cuts, in October without an extension of government aid. Adds airline shares WASHINGTON, Aug 26 (Reuters) - President Donald Trump could take executive action to avoid massive layoffs at U.S. airlines, while the coronavirus pandemic weighs on air travel and talks on a new COVID-19 stimulus bill remain stalled in Congress, White House Chief of Staff Mark Meadows said on Wednesday. Meadows said he has spoken to American Airlines, as well as United Airlines UAL.O, which has warned that 36,000 jobs are on the line, and to Delta Air Lines DAL.N, which announced furloughs of nearly 2,000 pilots on Monday.
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His remarks came a day after American Airlines AAL.O said its workforce will shrink by 40,000, including 19,000 involuntary cuts, in October without an extension of government aid. "We're looking at other executive actions," Meadows said in an online interview with Politico. "If Congress is not going to work, this president is going to get to work and solve some problems.
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5354.0
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2020-08-26 00:00:00 UTC
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White House says Trump could act unilaterally to avoid U.S. airline layoffs
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AAL
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https://www.nasdaq.com/articles/white-house-says-trump-could-act-unilaterally-to-avoid-u.s.-airline-layoffs-2020-08-26
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nan
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nan
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WASHINGTON, Aug 26 (Reuters) - President Donald Trump could take executive action to avoid massive layoffs at U.S. airlines, while an impasse on a new coronavirus stimulus package continues in Congress, White House Chief of Staff Mark Meadows said on Wednesday.
"We're looking at other executive actions," Meadows said in an online interview with Politico. "If Congress is not going to work, this president is going to get to work and solve some problems. So hopefully, we can help out the airlines and keep some of those employees from being furloughed."
(Reporting by David Morgan Editing by Chizu Nomiyama)
((david.morgan@thomsonreuters.com; +1 (202) 898 8326; twitter.com/dmorganreuters; Reuters Messaging: david.morgan.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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WASHINGTON, Aug 26 (Reuters) - President Donald Trump could take executive action to avoid massive layoffs at U.S. airlines, while an impasse on a new coronavirus stimulus package continues in Congress, White House Chief of Staff Mark Meadows said on Wednesday. "We're looking at other executive actions," Meadows said in an online interview with Politico. (Reporting by David Morgan Editing by Chizu Nomiyama) ((david.morgan@thomsonreuters.com; +1 (202) 898 8326; twitter.com/dmorganreuters; Reuters Messaging: david.morgan.thomsonreuters.com@reuters.net)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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WASHINGTON, Aug 26 (Reuters) - President Donald Trump could take executive action to avoid massive layoffs at U.S. airlines, while an impasse on a new coronavirus stimulus package continues in Congress, White House Chief of Staff Mark Meadows said on Wednesday. "We're looking at other executive actions," Meadows said in an online interview with Politico. (Reporting by David Morgan Editing by Chizu Nomiyama) ((david.morgan@thomsonreuters.com; +1 (202) 898 8326; twitter.com/dmorganreuters; Reuters Messaging: david.morgan.thomsonreuters.com@reuters.net)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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WASHINGTON, Aug 26 (Reuters) - President Donald Trump could take executive action to avoid massive layoffs at U.S. airlines, while an impasse on a new coronavirus stimulus package continues in Congress, White House Chief of Staff Mark Meadows said on Wednesday. "If Congress is not going to work, this president is going to get to work and solve some problems. (Reporting by David Morgan Editing by Chizu Nomiyama) ((david.morgan@thomsonreuters.com; +1 (202) 898 8326; twitter.com/dmorganreuters; Reuters Messaging: david.morgan.thomsonreuters.com@reuters.net)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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WASHINGTON, Aug 26 (Reuters) - President Donald Trump could take executive action to avoid massive layoffs at U.S. airlines, while an impasse on a new coronavirus stimulus package continues in Congress, White House Chief of Staff Mark Meadows said on Wednesday. "We're looking at other executive actions," Meadows said in an online interview with Politico. "If Congress is not going to work, this president is going to get to work and solve some problems.
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5355.0
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2020-08-26 00:00:00 UTC
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Botswana sees risk of no De Beers sales deal by end-2020
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AAL
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https://www.nasdaq.com/articles/botswana-sees-risk-of-no-de-beers-sales-deal-by-end-2020-2020-08-26
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By Brian Benza
GABORONE, Botswana, Aug 26 (Reuters) - Botswana's government said there is a risk it will be unable to renew a 10-year sales agreement with De Beers before the end of December, when the current one expires, as the COVID-19 pandemic has delayed negotiations.
"The ideal situation would be to end the talks by December but there are no guarantees that will happen," Mmetla Masire, Permanent Secretary in the Ministry of Minerals, told Reuters in an interview late on Monday.
He said the government had resumed negotiations, but travel restrictions have slowed progress.
Leading diamond producer De Beers, part of Anglo American AAL.L, said it could continue to operate under the existing agreement temporarily in the event of a delay.
"We remain focused on working with government regarding the next agreement and seeking to finalise it," De Beers spokeswoman Kesego Okie said in an emailed response.
A deal is necessary for the Debswana Mining Company, jointly held by De Beers and Botswana's government, as it provides the country with around two-thirds of its foreign exchange and makes up a fifth of its GDP.
For De Beers, a deal would provide another 10 years of clarity on the terms of its revenue from the source of 70% of its diamonds and 90% of its sales.
Any delay would set back President Mokgweetsi Masisi's efforts to create jobs in a country with high unemployment by boosting a fledgling diamond polishing and cutting industry.
In 2011, De Beers agreed to transfer its global sightholder sales, which account for 90% of its total sales, from London to Gaborone, generating investment and thousands of jobs in the southern African country.
Neither De Beers nor Masire would give details of the current negotiations.
Avi Krawitz, an analyst from Israel-based diamond information provider Rapaport, said a sticking point was likely to be the government's wish to increase its share of diamonds produced by Debswana from the 15% agreed in 2011, or to get a larger share of bigger stones.
(Reporting by Brian Benza in Gaborone; Editing by Promit Mukherjee, David Evans and Barbara Lewis)
((promit.mukherjee@thomsonreuters.com; +27 64833 4448;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Leading diamond producer De Beers, part of Anglo American AAL.L, said it could continue to operate under the existing agreement temporarily in the event of a delay. "The ideal situation would be to end the talks by December but there are no guarantees that will happen," Mmetla Masire, Permanent Secretary in the Ministry of Minerals, told Reuters in an interview late on Monday. A deal is necessary for the Debswana Mining Company, jointly held by De Beers and Botswana's government, as it provides the country with around two-thirds of its foreign exchange and makes up a fifth of its GDP.
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Leading diamond producer De Beers, part of Anglo American AAL.L, said it could continue to operate under the existing agreement temporarily in the event of a delay. By Brian Benza GABORONE, Botswana, Aug 26 (Reuters) - Botswana's government said there is a risk it will be unable to renew a 10-year sales agreement with De Beers before the end of December, when the current one expires, as the COVID-19 pandemic has delayed negotiations. A deal is necessary for the Debswana Mining Company, jointly held by De Beers and Botswana's government, as it provides the country with around two-thirds of its foreign exchange and makes up a fifth of its GDP.
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Leading diamond producer De Beers, part of Anglo American AAL.L, said it could continue to operate under the existing agreement temporarily in the event of a delay. By Brian Benza GABORONE, Botswana, Aug 26 (Reuters) - Botswana's government said there is a risk it will be unable to renew a 10-year sales agreement with De Beers before the end of December, when the current one expires, as the COVID-19 pandemic has delayed negotiations. A deal is necessary for the Debswana Mining Company, jointly held by De Beers and Botswana's government, as it provides the country with around two-thirds of its foreign exchange and makes up a fifth of its GDP.
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Leading diamond producer De Beers, part of Anglo American AAL.L, said it could continue to operate under the existing agreement temporarily in the event of a delay. By Brian Benza GABORONE, Botswana, Aug 26 (Reuters) - Botswana's government said there is a risk it will be unable to renew a 10-year sales agreement with De Beers before the end of December, when the current one expires, as the COVID-19 pandemic has delayed negotiations. He said the government had resumed negotiations, but travel restrictions have slowed progress.
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5356.0
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2020-08-25 00:00:00 UTC
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Botswana govt says no guarantee on De Beers sales deal by end-2020
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AAL
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https://www.nasdaq.com/articles/botswana-govt-says-no-guarantee-on-de-beers-sales-deal-by-end-2020-2020-08-25
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nan
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nan
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By Brian Benza
GABORONE, Botswana, Aug 25 (Reuters) - The Botswana government said there was no guarantee that it would be able to renew a new 10-year sales agreement with De Beers before the end of December, when the current one expires, as the coronavirus pandemic has delayed negotiations.
"The ideal situation would be to end the talks by December but there are no guarantees that will happen," said Mmetla Masire, Permanent Secretary in the Ministry of Minerals told Reuters in an interview late on Monday.
The deal is necessary for the Debswana Mining Company, jointly held by the world's biggest producer De Beers and the Botswana government, as it provides the country with around two-thirds of its foreign exchange and makes up a fifth of its GDP.
For De Beers, a new deal would mean another 10 years of clarity on the terms of its revenue stream from a country from where it sources 70% of its diamonds and 90% of its sales.
The wealth from diamond mining has helped transform the country from primarily a agri-based economy to one of Africa's richest countries.
A delay would set back President Mokgweetsi Masisi's efforts to boost a fledgling diamond polishing and cutting industry and create jobs in a country of 2.2 million with high unemployment.
Masire said the government had resumed talks for a new deal, but travel restrictions have kept the progress slow.
In 2011, De Beers agreed a deal to transfer its global sightholder sales, which accounts for 90% of its total diamond sales, from London to Gaborone, creating thousands of jobs and investment in the southern African country.
Botswana's government would want a higher allocation of diamonds produced by Debswana for sale from the current 15% agreed in 2011, or get a larger share of rough stones, said Avi Krawitz, an analyst from Israel-based diamond information provider Rapaport.
"This will be a sticking point for De Beers," he said.
Masire declined to divulge specific terms being negotiated in the talks.
De Beers, a subsidiary of Anglo American Plc AAL.L, is an important business division for its parent contributing a fifth of its revenue. De Beers has not responded to an emailed request for comment sent on Monday.
(Reporting by Brian Benza in Gaborone Editing by Promit Mukherjee and David Evans)
((promit.mukherjee@thomsonreuters.com; +27 64833 4448;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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De Beers, a subsidiary of Anglo American Plc AAL.L, is an important business division for its parent contributing a fifth of its revenue. "The ideal situation would be to end the talks by December but there are no guarantees that will happen," said Mmetla Masire, Permanent Secretary in the Ministry of Minerals told Reuters in an interview late on Monday. The deal is necessary for the Debswana Mining Company, jointly held by the world's biggest producer De Beers and the Botswana government, as it provides the country with around two-thirds of its foreign exchange and makes up a fifth of its GDP.
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De Beers, a subsidiary of Anglo American Plc AAL.L, is an important business division for its parent contributing a fifth of its revenue. By Brian Benza GABORONE, Botswana, Aug 25 (Reuters) - The Botswana government said there was no guarantee that it would be able to renew a new 10-year sales agreement with De Beers before the end of December, when the current one expires, as the coronavirus pandemic has delayed negotiations. The deal is necessary for the Debswana Mining Company, jointly held by the world's biggest producer De Beers and the Botswana government, as it provides the country with around two-thirds of its foreign exchange and makes up a fifth of its GDP.
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De Beers, a subsidiary of Anglo American Plc AAL.L, is an important business division for its parent contributing a fifth of its revenue. By Brian Benza GABORONE, Botswana, Aug 25 (Reuters) - The Botswana government said there was no guarantee that it would be able to renew a new 10-year sales agreement with De Beers before the end of December, when the current one expires, as the coronavirus pandemic has delayed negotiations. For De Beers, a new deal would mean another 10 years of clarity on the terms of its revenue stream from a country from where it sources 70% of its diamonds and 90% of its sales.
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De Beers, a subsidiary of Anglo American Plc AAL.L, is an important business division for its parent contributing a fifth of its revenue. By Brian Benza GABORONE, Botswana, Aug 25 (Reuters) - The Botswana government said there was no guarantee that it would be able to renew a new 10-year sales agreement with De Beers before the end of December, when the current one expires, as the coronavirus pandemic has delayed negotiations. For De Beers, a new deal would mean another 10 years of clarity on the terms of its revenue stream from a country from where it sources 70% of its diamonds and 90% of its sales.
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5357.0
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2020-08-25 00:00:00 UTC
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Why Southwest Airlines Is the Better Investment
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AAL
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https://www.nasdaq.com/articles/why-southwest-airlines-is-the-better-investment-2020-08-25
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The airline group has started to catch investors’ attention. They are looking for the next group that could go on a big run. That puts stocks like Southwest Airlines (NYSE:LUV) on the radar, as investors wonder whether LUV stock can keep its place among the best performing in the group.
Source: Jeramey Lende / Shutterstock.com
However, if there’s an upside pop, Southwest may not perform as well as some of its peers. Check this out.
Performance Review
LUV stock is down 36% so far for 2020. That may not be as bad as some investors were thinking. In any regard, the next best performer is Delta Air Lines (NYSE:DAL), which is down almost 53%.
That’s a huge gap between LUV and the No. 2 performer. Delta is followed closely by American Airlines (NASDAQ:AAL), which is down 56.4%, then Spirit Airlines (NYSE:SAVE) and United Airlines (NASDAQ:UAL) are down 57.3% and 61.3%, respectively.
So why wouldn’t LUV stock outperform on the way up? Simply because it has held up better on the way down. In other words, the AAL and UAL’s of the world have more upside potential should the airline space come back in favor with investors.
That’s not to say these businesses are better investments, only that in the short- to intermediate-term, the stocks could have more upside in a momentum situation. Let’s look more closely at Southwest Airlines.
Breaking Down Southwest Stock
Of the group above, Southwest Airlines is among three airlines that are currently forecast to be profitable next year. It joins Spirit Airlines and Delta in that category.
Further, we all know that 2020 is a rough year for the airlines. As a result, revenue is plunging versus 2019 results. However, Southwest and Spirit are the only two that are forecast to recoup more than 75% of 2019 revenue in 2021. United, Delta and American are expected to recover about 65% of 2019 sales.
Like its peers, Southwest Airlines has seen a solid recovery in revenue and bookings from the April lows. However, that demand has plateaued since July. That is clear by the TSA checkpoint travel numbers seen above, as well.
However, unlike many of its peers, Southwest holds a dominant position when it comes to the balance sheet. In its most recent earnings report, management had this to say:
“We have strong liquidity, with cash and short-term investments of $14.5 billion as of June 30, 2020; the only investment-grade credit rating in the U.S. airline industry by all three agencies.”
If I am looking at an investment in the airline space, I want to go with the company that is forecast to be profitable next year and recoup a bulk of its prior revenue. I want the company with the strongest financials and to be in the name that’s holding up the best on the downside.
That said, a robust rally will likely propel its peers higher in the short term. If that’s the case, they may be better trades than LUV stock, but I wouldn’t call them better investments.
Trading LUV Stock
Click to Enlarge
Source: Chart courtesy of StockCharts.com
LUV stock isn’t exactly in breakdown mode, but it’s not really thriving at the moment either.
Shares are hugging the 20-day and 50-day moving averages, but are holding up over prior downtrend resistance (blue line). If this support area caves, bulls need to see the $31 support level hold.
Below puts the August and July low in play near $30.25. If LUV stock closes below that, it opens the door to more downside selling pressure.
On the upside, investors want to see a rotation back over the August high, up at $37.44. Above that mark puts the 200-day moving average in play, along with the June high at $42.35.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell did not hold a position in any of the aforementioned securities.
The post Why Southwest Airlines Is the Better Investment appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In other words, the AAL and UAL’s of the world have more upside potential should the airline space come back in favor with investors. Delta is followed closely by American Airlines (NASDAQ:AAL), which is down 56.4%, then Spirit Airlines (NYSE:SAVE) and United Airlines (NASDAQ:UAL) are down 57.3% and 61.3%, respectively. In its most recent earnings report, management had this to say: “We have strong liquidity, with cash and short-term investments of $14.5 billion as of June 30, 2020; the only investment-grade credit rating in the U.S. airline industry by all three agencies.” If I am looking at an investment in the airline space, I want to go with the company that is forecast to be profitable next year and recoup a bulk of its prior revenue.
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Delta is followed closely by American Airlines (NASDAQ:AAL), which is down 56.4%, then Spirit Airlines (NYSE:SAVE) and United Airlines (NASDAQ:UAL) are down 57.3% and 61.3%, respectively. In other words, the AAL and UAL’s of the world have more upside potential should the airline space come back in favor with investors. That puts stocks like Southwest Airlines (NYSE:LUV) on the radar, as investors wonder whether LUV stock can keep its place among the best performing in the group.
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Delta is followed closely by American Airlines (NASDAQ:AAL), which is down 56.4%, then Spirit Airlines (NYSE:SAVE) and United Airlines (NASDAQ:UAL) are down 57.3% and 61.3%, respectively. In other words, the AAL and UAL’s of the world have more upside potential should the airline space come back in favor with investors. That puts stocks like Southwest Airlines (NYSE:LUV) on the radar, as investors wonder whether LUV stock can keep its place among the best performing in the group.
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Delta is followed closely by American Airlines (NASDAQ:AAL), which is down 56.4%, then Spirit Airlines (NYSE:SAVE) and United Airlines (NASDAQ:UAL) are down 57.3% and 61.3%, respectively. In other words, the AAL and UAL’s of the world have more upside potential should the airline space come back in favor with investors. That puts stocks like Southwest Airlines (NYSE:LUV) on the radar, as investors wonder whether LUV stock can keep its place among the best performing in the group.
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5358.0
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2020-08-25 00:00:00 UTC
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Why Shares of United Airlines Lost Altitude Today
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AAL
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https://www.nasdaq.com/articles/why-shares-of-united-airlines-lost-altitude-today-2020-08-25
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nan
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nan
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What happened
Airline shares were under pressure on Tuesday, with United Airlines Holdings (NASDAQ: UAL) falling 5.1% at its low. It was news from another carrier, American Airlines Group (NASDAQ: AAL), that was weighing on investors. But with COVID-19 hanging over the entire industry, one carrier's news tends to ripple to other stocks.
So what
The airlines have been hit hard by the pandemic, but the industry traded a moratorium on layoffs for $25 billion in government payroll support earlier this year and have so far avoided massive downsizing. That deal expires on Sept. 30, and we are getting a clear picture of how dramatic the cuts might be once it does.
Image source: United Airlines.
American said Tuesday it expects to cut 40,000 of its 140,000 jobs, including upwards of 19,000 involuntary furloughs, in early October once the payroll support ends. A day earlier Delta Air Lines (NYSE: DAL) said it will need to furlough up to 1,941 pilots to accurately adjust to falling demand.
Southwest Airlines (NYSE: LUV) is still weighing the need for job cuts after getting offers from more than 25% of its workforce to take buyouts or extended leaves of absence. Which leaves United among the so-called "big four" U.S. airlines when it comes to cuts. Expect a high number: United said in late July it could furlough as many as 36,000 workers if demand does not return.
The talk of massive job cuts is weighing on airlines today. Criticism of the initial bailout could also make it harder for the industry to secure a second round of assistance that would allow them to avoid layoffs for at least the next six months.
Now what
It's easy to take potshots at the initial government plan as putting off the inevitable. But lawmakers knew that going in. The government received warrants in return for the funds and some of the money came in the form of loans. But the calculus from the beginning was to try to avoid an additional 100,000 job losses at a time when the unemployment system was under pressure, and to hope that by the time Sept. 30 came around travel would have recovered and layoffs could be avoided.
That hasn't happened, and it appears likely it will be 2022 at the earliest before domestic travel rebounds to pre-pandemic levels. If so, at some point these companies are going to need to get smaller.
The talk of layoffs is devastating potential news for families, has real political ramifications, and shouldn't be dismissed. But for investors, it is not something that should prompt a sell-off. As discussed last month, the airlines are flying at less than half of their pre-COVID capacity and simply need to bring down payrolls if they are going to survive.
In the coming months the airlines will either get additional payroll support, or will dramatically reduce the size of their operations. I can't predict which will happen, but would advise investors to remain calm either way.
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Lou Whiteman 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.
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It was news from another carrier, American Airlines Group (NASDAQ: AAL), that was weighing on investors. So what The airlines have been hit hard by the pandemic, but the industry traded a moratorium on layoffs for $25 billion in government payroll support earlier this year and have so far avoided massive downsizing. American said Tuesday it expects to cut 40,000 of its 140,000 jobs, including upwards of 19,000 involuntary furloughs, in early October once the payroll support ends.
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It was news from another carrier, American Airlines Group (NASDAQ: AAL), that was weighing on investors. What happened Airline shares were under pressure on Tuesday, with United Airlines Holdings (NASDAQ: UAL) falling 5.1% at its low. A day earlier Delta Air Lines (NYSE: DAL) said it will need to furlough up to 1,941 pilots to accurately adjust to falling demand.
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It was news from another carrier, American Airlines Group (NASDAQ: AAL), that was weighing on investors. What happened Airline shares were under pressure on Tuesday, with United Airlines Holdings (NASDAQ: UAL) falling 5.1% at its low. 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.
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It was news from another carrier, American Airlines Group (NASDAQ: AAL), that was weighing on investors. The talk of massive job cuts is weighing on airlines today. In the coming months the airlines will either get additional payroll support, or will dramatically reduce the size of their operations.
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5359.0
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2020-08-25 00:00:00 UTC
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S&P 500, Nasdaq close at record highs on trade, vaccine developments
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AAL
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https://www.nasdaq.com/articles/sp-500-nasdaq-close-at-record-highs-on-trade-vaccine-developments-2020-08-25-0
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nan
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nan
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By Stephen Culp
NEW YORK, Aug 25 (Reuters) - The S&P 500 and the Nasdaq hit all-time closing highs on Tuesday, but a drop in Apple stock capped gains from positive developments in U.S.-China trade and fresh progress in the medical battle against the coronavirus pandemic.
The Dow, which has yet to reclaim its February high, ended the session lower.
Apple Inc AAPL.O weighed heaviest on all three indexes, its stock retreating 0.8% days ahead of its 4-to-1 stock split.
That split, which will reduce Apple's weight in the Dow, prompted a reshuffle in the blue-chip industrial average, with Salesforce.com CRM.N replacing Exxon Mobil Corp XOM.N, Amgen Inc AMGN.O taking Pfizer Inc's PFE.N spot, and Raytheon Technologies Corp RTN.N ousted by Honeywell International Inc HON.N.
Salesforce.com, Amgen and Honeywell shares advanced 3.6%, 3.2% and 5.4%, respectively.
"These changes reflect what has occurred in the overall business environment," said Robert Pavlik, chief investment strategist at SlateStone Wealth LLC in New York.
"But if (the Dow) were a portfolio drafted by a portfolio manager, the client would have fired the portfolio manager," Pavlik added.
Trade officials in Washington and Beijing reaffirmed their commitment to Phase One of a bilateral trade deal, but goodwill between the countries soured as China called a U.S. spy plane's flight through a no-fly zone a "naked provocation."
British drugmaker AstraZeneca AZN.L has begun trials of its antibody-based drug for the treatment and prevention of COVID-19, the latest development in a global race to combat the pandemic.
On the economics front, the Conference Board's Consumer Confidence index plunged to a 6-year low this month, while a report from the Commerce Department showed sales of new homes in July surged to a more than 13-1/2-year high.
"You have this dichotomy between what's happening in the stock market and the economy," Pavlik said. "They're moving away from each other."
"Wall Street believes in a year from now the economy is going to improve and it's positioning itself to what it anticipates six months to a year from now."
The Dow Jones Industrial Average .DJIfell 60.02 points, or 0.21%, to 28,248.44, the S&P 500 .SPXgained 12.34 points, or 0.36%, to 3,443.62 and the Nasdaq Composite .IXICadded 86.75 points, or 0.76%, to 11,466.47.
Of the major sectors in the S&P 500, six ended the session higher, with communications services .SPLRCL enjoying the largest percentage gain and energy .SPNY falling the most.
American Airlines Group Inc AAL.O dropped 2.2% after announcing it would layoff 19,000 employees in October unless the government extends airline payroll aid.
Electronics chain Best Buy Inc BBY.N beat analysts' second-quarter sales expectations but warned of a current quarter slowdown following the work-from-home demand surge. Its shares fell 4.0%.
Medtronic MDT.N rose 2.5% after the medical device maker's quarterly profit beat consensus. The company said a revival in elective surgeries was boosting demand.
Salesforce.com CRM.N jumped over 7% in extended trading after posting results.
Advancing issues outnumbered declining ones on the NYSE by a 1.05-to-1 ratio; on Nasdaq, a 1.48-to-1 ratio favored advancers.
The S&P 500 posted 29 new 52-week highs and no new lows; the Nasdaq Composite recorded 58 new highs and 24 new lows.
Volume on U.S. exchanges was 8.30 billion shares, compared with the 9.48 billion average over the last 20 trading days.
(Reporting by Stephen Culp; Editing by Cynthia Osterman)
((stephen.culp@thomsonreuters.com; 646-223-6076;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines Group Inc AAL.O dropped 2.2% after announcing it would layoff 19,000 employees in October unless the government extends airline payroll aid. By Stephen Culp NEW YORK, Aug 25 (Reuters) - The S&P 500 and the Nasdaq hit all-time closing highs on Tuesday, but a drop in Apple stock capped gains from positive developments in U.S.-China trade and fresh progress in the medical battle against the coronavirus pandemic. British drugmaker AstraZeneca AZN.L has begun trials of its antibody-based drug for the treatment and prevention of COVID-19, the latest development in a global race to combat the pandemic.
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American Airlines Group Inc AAL.O dropped 2.2% after announcing it would layoff 19,000 employees in October unless the government extends airline payroll aid. By Stephen Culp NEW YORK, Aug 25 (Reuters) - The S&P 500 and the Nasdaq hit all-time closing highs on Tuesday, but a drop in Apple stock capped gains from positive developments in U.S.-China trade and fresh progress in the medical battle against the coronavirus pandemic. Salesforce.com, Amgen and Honeywell shares advanced 3.6%, 3.2% and 5.4%, respectively.
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American Airlines Group Inc AAL.O dropped 2.2% after announcing it would layoff 19,000 employees in October unless the government extends airline payroll aid. By Stephen Culp NEW YORK, Aug 25 (Reuters) - The S&P 500 and the Nasdaq hit all-time closing highs on Tuesday, but a drop in Apple stock capped gains from positive developments in U.S.-China trade and fresh progress in the medical battle against the coronavirus pandemic. That split, which will reduce Apple's weight in the Dow, prompted a reshuffle in the blue-chip industrial average, with Salesforce.com CRM.N replacing Exxon Mobil Corp XOM.N, Amgen Inc AMGN.O taking Pfizer Inc's PFE.N spot, and Raytheon Technologies Corp RTN.N ousted by Honeywell International Inc HON.N.
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American Airlines Group Inc AAL.O dropped 2.2% after announcing it would layoff 19,000 employees in October unless the government extends airline payroll aid. Apple Inc AAPL.O weighed heaviest on all three indexes, its stock retreating 0.8% days ahead of its 4-to-1 stock split. Salesforce.com, Amgen and Honeywell shares advanced 3.6%, 3.2% and 5.4%, respectively.
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5360.0
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2020-08-25 00:00:00 UTC
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S&P 500, Nasdaq close at record highs on trade, vaccine developments
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AAL
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https://www.nasdaq.com/articles/sp-500-nasdaq-close-at-record-highs-on-trade-vaccine-developments-2020-08-25
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nan
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nan
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By Stephen Culp
NEW YORK, Aug 25 (Reuters) - The S&P 500 and the Nasdaq hit all-time closing highs on Tuesday, but a drop in Apple stock capped gains from positive developments in U.S.-China trade and fresh progress in the medical battle against the coronavirus pandemic.
The Dow, which has yet to reclaim its February high, ended the session lower.
Apple Inc AAPL.O weighed heaviest on all three indexes, its stock retreating days ahead of its 4-to-1 stock split.
That split, which will reduce Apple's weight in the Dow, prompted a reshuffle in the blue-chip industrial average, with Salesforce.com CRM.N replacing Exxon Mobil Corp XOM.N, Amgen Inc AMGN.O taking Pfizer Inc's PFE.N spot, and Raytheon Technologies Corp RTN.N ousted by Honeywell International Inc HON.N.
"These changes reflect what has occurred in the overall business environment," said Robert Pavlik, chief investment strategist at SlateStone Wealth LLC in New York.
"But if (the Dow) were a portfolio drafted by a portfolio manager, the client would have fired the portfolio manager," Pavlik added.
Trade officials in Washington and Beijing reaffirmed their commitment to Phase One of a bilateral trade deal, but goodwill between the countries soured as China called a U.S. spy plane's flight through a no-fly zone a "naked provocation."
British drugmaker AstraZeneca AZN.L has begun trials of its antibody-based drug for the treatment and prevention of COVID-19, the latest development in a global race to combat the pandemic.
Later in the week the Kansas City Fed will convene its virtual Jackson Hole Economic Policy Symposium, with U.S. Federal Reserve Chairman Jerome Powell expected to speak.
On the economics front, the Conference Board's Consumer Confidence index plunged to a 6-year low this month, while a report from the Commerce Department showed sales of new homes in July surged to a more than 13-1/2-year high.
"You have this dichotomy between what's happening in the stock market and the economy," Pavlik said. "They're moving away from each other."
"Wall Street believes in a year from now the economy is going to improve and it's positioning itself to what it anticipates six months to a year from now."
Unofficially, the Dow Jones Industrial Average .DJI fell 59.71 points, or 0.21%, to 28,248.75, the S&P 500 .SPX gained 12.39 points, or 0.36%, to 3,443.67 and the Nasdaq Composite .IXIC added 86.75 points, or 0.76%, to 11,466.47.
Of the major sectors in the S&P 500, communications services .SPLRCL enjoyed the largest percentage gain, with energy .SPNY falling the most.
Shares of American Airlines Group Inc AAL.O dropped after announcing it would layoff 19,000 employees in October unless the government extends airline payroll aid.
Electronics chain Best Buy Inc BBY.N beat analysts' second-quarter sales expectations but warned of a current quarter slowdown following the work-from-home demand surge.
Medtronic's MDT.N stock advanced after the medical device maker's quarterly profit beat consensus. The company said a revival in elective surgeries was boosting demand.
(Reporting by Stephen Culp; Editing by Cynthia Osterman)
((stephen.culp@thomsonreuters.com; 646-223-6076;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Shares of American Airlines Group Inc AAL.O dropped after announcing it would layoff 19,000 employees in October unless the government extends airline payroll aid. By Stephen Culp NEW YORK, Aug 25 (Reuters) - The S&P 500 and the Nasdaq hit all-time closing highs on Tuesday, but a drop in Apple stock capped gains from positive developments in U.S.-China trade and fresh progress in the medical battle against the coronavirus pandemic. Later in the week the Kansas City Fed will convene its virtual Jackson Hole Economic Policy Symposium, with U.S. Federal Reserve Chairman Jerome Powell expected to speak.
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Shares of American Airlines Group Inc AAL.O dropped after announcing it would layoff 19,000 employees in October unless the government extends airline payroll aid. By Stephen Culp NEW YORK, Aug 25 (Reuters) - The S&P 500 and the Nasdaq hit all-time closing highs on Tuesday, but a drop in Apple stock capped gains from positive developments in U.S.-China trade and fresh progress in the medical battle against the coronavirus pandemic. "But if (the Dow) were a portfolio drafted by a portfolio manager, the client would have fired the portfolio manager," Pavlik added.
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Shares of American Airlines Group Inc AAL.O dropped after announcing it would layoff 19,000 employees in October unless the government extends airline payroll aid. By Stephen Culp NEW YORK, Aug 25 (Reuters) - The S&P 500 and the Nasdaq hit all-time closing highs on Tuesday, but a drop in Apple stock capped gains from positive developments in U.S.-China trade and fresh progress in the medical battle against the coronavirus pandemic. That split, which will reduce Apple's weight in the Dow, prompted a reshuffle in the blue-chip industrial average, with Salesforce.com CRM.N replacing Exxon Mobil Corp XOM.N, Amgen Inc AMGN.O taking Pfizer Inc's PFE.N spot, and Raytheon Technologies Corp RTN.N ousted by Honeywell International Inc HON.N.
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Shares of American Airlines Group Inc AAL.O dropped after announcing it would layoff 19,000 employees in October unless the government extends airline payroll aid. By Stephen Culp NEW YORK, Aug 25 (Reuters) - The S&P 500 and the Nasdaq hit all-time closing highs on Tuesday, but a drop in Apple stock capped gains from positive developments in U.S.-China trade and fresh progress in the medical battle against the coronavirus pandemic. The Dow, which has yet to reclaim its February high, ended the session lower.
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5361.0
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2020-08-25 00:00:00 UTC
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S&P 500 inches higher on trade, vaccine developments
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AAL
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https://www.nasdaq.com/articles/sp-500-inches-higher-on-trade-vaccine-developments-2020-08-25
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nan
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nan
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By Stephen Culp
NEW YORK, Aug 25 (Reuters) - The S&P 500 edged higher on Tuesday, with a drop in Apple stock capping gains from positive developments in U.S.-China trade and fresh progress in the medical battle against the coronavirus pandemic.
The S&P 500 and the Nasdaq were up modestly, on track to close at record highs. But the Dow, which has yet to reclaim its February high, was firmly in the red.
"The market's struggling," said Paul Nolte, portfolio manager at Kingsview Asset Management in Chicago. "Investors are done with the earnings season and they're staring at the upcoming election wondering what's next."
"We're looking at a market that's richly valued that investors are starting to think about rebalancing a bit."
Apple Inc AAPL.O weighed heaviest on all three indexes, its stock retreating 1.6% days ahead of its 4-to-1 stock split.
That split, which will reduce Apple's weight in the Dow, prompted a reshuffle in the blue-chip industrial average, with Salesforce.com CRM.N replacing Exxon Mobil Corp XOM.N, Amgen Inc AMGN.O taking Pfizer Inc's PFE.N spot, and Raytheon Technologies Corp RTN.N ousted by Honeywell International Inc HON.N.
Salesforce.com, Amgen and Honeywell shares were up between about 3% and 5%.
Trade officials in Washington and Beijing reaffirmed their commitment to Phase One of a bilateral trade deal, but goodwill between the countries soured as China called a U.S. spy plane's flight through a no-fly zone a "naked provocation."
British drugmaker AstraZeneca AZN.L has begun trials of its antibody-based drug for the treatment and prevention of COVID-19, the latest development in a global race to combat the pandemic.
Later in the week the Kansas City Fed will convene its virtual Jackson Hole Economic Policy Symposium, with U.S. Federal Reserve Chairman Jerome Powell expected to speak.
On the economics front, the Conference Board's Consumer Confidence index plunged to a 6-year low this month, while a report from the Commerce Department showed sales of new homes in July surged to a more than 13-1/2-year high.
The Dow Jones Industrial Average .DJI fell 127.58 points, or 0.45%, to 28,180.88, the S&P 500 .SPX gained 3.59 points, or 0.10%, to 3,434.87 and the Nasdaq Composite .IXIC added 40.43 points, or 0.36%, to 11,420.15.
Of the 11 major sectors in the S&P 500, four were in positive territory, with communications services .SPLRCL enjoying the largest percentage gain.
American Airlines Group Inc AAL.O dropped 2.8% after announcing it would layoff 19,000 employees in October unless the government extends airline payroll aid.
Electronics chain Best Buy Inc BBY.N beat analysts' second-quarter sales expectations but warned of a current quarter slowdown following the work-from-home demand surge. Its shares were off 4.6%.
Medtronic MDT.N rose 2.8% after the medical device maker's quarterly profit beat consensus. The company said a revival in elective surgeries was boosting demand.
Salesforce.com CRM.N is expected to post results after the bell.
Declining issues outnumbered advancing ones on the NYSE by a 1.45-to-1 ratio; on Nasdaq, a 1.07-to-1 ratio favored advancers.
The S&P 500 posted 27 new 52-week highs and no new lows; the Nasdaq Composite recorded 54 new highs and 22 new lows.
(Reporting by Stephen Culp)
((stephen.culp@thomsonreuters.com; 646-223-6076;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines Group Inc AAL.O dropped 2.8% after announcing it would layoff 19,000 employees in October unless the government extends airline payroll aid. By Stephen Culp NEW YORK, Aug 25 (Reuters) - The S&P 500 edged higher on Tuesday, with a drop in Apple stock capping gains from positive developments in U.S.-China trade and fresh progress in the medical battle against the coronavirus pandemic. Later in the week the Kansas City Fed will convene its virtual Jackson Hole Economic Policy Symposium, with U.S. Federal Reserve Chairman Jerome Powell expected to speak.
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American Airlines Group Inc AAL.O dropped 2.8% after announcing it would layoff 19,000 employees in October unless the government extends airline payroll aid. By Stephen Culp NEW YORK, Aug 25 (Reuters) - The S&P 500 edged higher on Tuesday, with a drop in Apple stock capping gains from positive developments in U.S.-China trade and fresh progress in the medical battle against the coronavirus pandemic. The S&P 500 posted 27 new 52-week highs and no new lows; the Nasdaq Composite recorded 54 new highs and 22 new lows.
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American Airlines Group Inc AAL.O dropped 2.8% after announcing it would layoff 19,000 employees in October unless the government extends airline payroll aid. By Stephen Culp NEW YORK, Aug 25 (Reuters) - The S&P 500 edged higher on Tuesday, with a drop in Apple stock capping gains from positive developments in U.S.-China trade and fresh progress in the medical battle against the coronavirus pandemic. That split, which will reduce Apple's weight in the Dow, prompted a reshuffle in the blue-chip industrial average, with Salesforce.com CRM.N replacing Exxon Mobil Corp XOM.N, Amgen Inc AMGN.O taking Pfizer Inc's PFE.N spot, and Raytheon Technologies Corp RTN.N ousted by Honeywell International Inc HON.N.
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American Airlines Group Inc AAL.O dropped 2.8% after announcing it would layoff 19,000 employees in October unless the government extends airline payroll aid. "Investors are done with the earnings season and they're staring at the upcoming election wondering what's next." That split, which will reduce Apple's weight in the Dow, prompted a reshuffle in the blue-chip industrial average, with Salesforce.com CRM.N replacing Exxon Mobil Corp XOM.N, Amgen Inc AMGN.O taking Pfizer Inc's PFE.N spot, and Raytheon Technologies Corp RTN.N ousted by Honeywell International Inc HON.N.
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5362.0
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2020-08-25 00:00:00 UTC
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BUZZ-U.S. STOCKS ON THE MOVE-Ford Motor, Exterran Corp, Alibaba Group, American Airlines
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AAL
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https://www.nasdaq.com/articles/buzz-u.s.-stocks-on-the-move-ford-motor-exterran-corp-alibaba-group-american-airlines-2020
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nan
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nan
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Eikon search string for individual stock moves: STXBZ
The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi
The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh
The S&P 500 was little changed on Tuesday with investors staying on the sidelines following a three-day rally, as optimism from U.S. and China officials pledging firm commitment to a Phase 1 trade deal petered out. .N
At 13:00 ET, the Dow Jones Industrial Average .DJI was down 0.50% at 28,166.24. The S&P 500 .SPX was up 0.07% at 3,433.54 and the Nasdaq Composite .IXIC was up 0.33% at 11,417.206. The top three S&P 500 .PG.INX percentage gainers: ** Gap Inc , up 8.5% ** J M Smucker Co , up 8% ** Amgen Inc , up 5.4% The top three S&P 500 .PL.INX percentage losers: ** Best Buy Co Inc , down 4.6% ** United Airlines Holdings Inc , down 4% ** Carnival Corp , down 3.8% The top three NYSE .PG.N percentage gainers: ** FTS International Inc , up 29.5% ** Phoenix Tree Holdings Ltd , up 23.1% ** Ibio Inc , up 15.8% The top three NYSE .PL.N percentage losers: ** Velocity Financial Inc , down 14.7% ** Camping World Holdings Inc , down 11% ** Portland General Electric Co , down 10% The top three Nasdaq .PG.O percentage gainers: ** Vivopower International Plc , up 38.9% ** Gores Holdings IV Inc , up 38.2% ** Sigma Labs Inc , up 31.1% The top three Nasdaq .PL.O percentage losers: ** Sonnet Biotherapeutics Holdings Inc , down 20.2% ** Children's Place , down 19.1% ** YRC Worldwide Inc , down 16.7% ** Starbucks Corp SBUX.O: up 5.0%
BUZZ-Stifel expects shares to grind higher as sales recover USN ** Salesforce.com CRM.N: up 3.6%
BUZZ-Set for record high; Honeywell, Amgen gain on Dow addition ** Viveve Medical Inc VIVE.O: up 97.8%
BUZZ-Surges on positive study results ** Exxon Mobil Corp XOM.N: down 3.2%
BUZZ-Slips after Dow Jones drops oil giant following shake-up ** Medtronic Plc MDT.N: up 2.5%
BUZZ-Rises as Q1 profit falls less than expected ** Best Buy Co BBY.N: down 4.6%
BUZZ-Falls after sales growth warning ** J.M. Smucker Co SJM.N: up 8.0%
BUZZ-Eyes best day in nearly 3 months on upbeat results, outlook ** Children's Place Inc PLCE.O: down 19.1%
BUZZ-Drops after wider-than-expected Q2 loss ** ReneSola Ltd SOL.N: up 3.5%
BUZZ-Rises on asset purchase in an all-stock deal ** Gap Inc GPS.N: up 8.5%
BUZZ-Rises after Citi upgrades rating to 'buy' ** Ovid Therapeutics OVID.O: up 2.4%
BUZZ-Set for record rise on epilepsy drug progress
** Smith & Wesson SWBI.O: up 6.5%
BUZZ-Cowen reinstates with "outperform" on firearms pure play ** Crocs Inc CROX.O: up 0.7%
BUZZ-Rises on footwear deal with Vera Bradley ** Sarepta Therapeutics Inc SRPT.O: up 2.7%
BUZZ-Rises as FDA accepts marketing application for muscle disorder drug ** Tiffany & Co TIF.N: down 3.5%
BUZZ-Slides as LVMH reserves right to challenge new deal deadline ** Sigma Labs SGLB.O: up 31.1%
BUZZ-Hits over 5-month high on contract with Mitsubishi Heavy Industries ** Apple Inc AAPL.O: down 1.5%
BUZZ-Set to snap five-day winning streak ** Vital Farms Inc VITL.O: down 5.1%
BUZZ-Vital Farms sags as initiations by IPO banks lean "neutral" ** Alphabet Inc GOOGL.O: up 0.9%
BUZZ-UBS hikes PT on ad growth prospects, recovery hopes ** Hain Celestial Group HAIN.O: down 11.8%
BUZZ-Falls as CEO flags slower H2 growth ** Ford Motor Co F.N: down 1.1%
BUZZ-Dips after recalling over 500 Explorer, Lincoln Aviator SUVs ** Facebook Inc FB.O: up 2.9%
BUZZ-Rises as UBS hikes PT to Street's highest ** Exterran Corp EXTN.N: down 1.7%
BUZZ-Exterran to sell natgas compression assets to Canada's Compass, shares fall ** Alibaba Group Holding Ltd BABA.N: up 4.5% ** Pinduoduo Inc PDD.O: up 5.7%
BUZZ-U.S.-listed Chinese firms rise on trade optimism ** American Airlines Group Inc AAL.O: down 3.1%
BUZZ-Falls on plans to cut 19,000 jobs when U.S. aid expires ** 21Vianet Group Inc VNET.O: down 4.8%
BUZZ-Chinese data center co 21Vianet slides on planned equity offering
The 11 major S&P 500 sectors:
Communication Services
.SPLRCL
up 0.60%
Consumer Discretionary
.SPLRCD
up 0.40%
Consumer Staples
.SPLRCS
down 0.25%
Energy
.SPNY
down 1.61%
Financial
.SPSY
up 0.08%
Health
.SPXHC
up 0.55%
Industrial
.SPLRCI
down 0.39%
Information Technology
.SPLRCT
up 0.04%
Materials
.SPLRCM
down 0.68%
Real Estate
.SPLRCR
down 0.14%
Utilities
.SPLRCU
down 1.05%
(Compiled by Shivani Kumaresan in Bengaluru)
((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.
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Smucker Co SJM.N: up 8.0% BUZZ-Eyes best day in nearly 3 months on upbeat results, outlook ** Children's Place Inc PLCE.O: down 19.1% BUZZ-Drops after wider-than-expected Q2 loss ** ReneSola Ltd SOL.N: up 3.5% BUZZ-Rises on asset purchase in an all-stock deal ** Gap Inc GPS.N: up 8.5% BUZZ-Rises after Citi upgrades rating to 'buy' ** Ovid Therapeutics OVID.O: up 2.4% BUZZ-Set for record rise on epilepsy drug progress ** Smith & Wesson SWBI.O: up 6.5% BUZZ-Cowen reinstates with "outperform" on firearms pure play ** Crocs Inc CROX.O: up 0.7% BUZZ-Rises on footwear deal with Vera Bradley ** Sarepta Therapeutics Inc SRPT.O: up 2.7% BUZZ-Rises as FDA accepts marketing application for muscle disorder drug ** Tiffany & Co TIF.N: down 3.5% BUZZ-Slides as LVMH reserves right to challenge new deal deadline ** Sigma Labs SGLB.O: up 31.1% BUZZ-Hits over 5-month high on contract with Mitsubishi Heavy Industries ** Apple Inc AAPL.O: down 1.5% BUZZ-Set to snap five-day winning streak ** Vital Farms Inc VITL.O: down 5.1% BUZZ-Vital Farms sags as initiations by IPO banks lean "neutral" ** Alphabet Inc GOOGL.O: up 0.9% BUZZ-UBS hikes PT on ad growth prospects, recovery hopes ** Hain Celestial Group HAIN.O: down 11.8% BUZZ-Falls as CEO flags slower H2 growth ** Ford Motor Co F.N: down 1.1% BUZZ-Dips after recalling over 500 Explorer, Lincoln Aviator SUVs ** Facebook Inc FB.O: up 2.9% BUZZ-Rises as UBS hikes PT to Street's highest ** Exterran Corp EXTN.N: down 1.7% BUZZ-Exterran to sell natgas compression assets to Canada's Compass, shares fall ** Alibaba Group Holding Ltd BABA.N: up 4.5% ** Pinduoduo Inc PDD.O: up 5.7% BUZZ-U.S.-listed Chinese firms rise on trade optimism ** American Airlines Group Inc AAL.O: down 3.1% BUZZ-Falls on plans to cut 19,000 jobs when U.S. aid expires ** 21Vianet Group Inc VNET.O: down 4.8% BUZZ-Chinese data center co 21Vianet slides on planned equity offering The 11 major S&P 500 sectors: Communication Services Eikon search string for individual stock moves: STXBZ The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh The S&P 500 was little changed on Tuesday with investors staying on the sidelines following a three-day rally, as optimism from U.S. and China officials pledging firm commitment to a Phase 1 trade deal petered out. The top three S&P 500 .PG.INX percentage gainers: ** Gap Inc , up 8.5% ** J M Smucker Co , up 8% ** Amgen Inc , up 5.4% The top three S&P 500 .PL.INX percentage losers: ** Best Buy Co Inc , down 4.6% ** United Airlines Holdings Inc , down 4% ** Carnival Corp , down 3.8% The top three NYSE .PG.N percentage gainers: ** FTS International Inc , up 29.5% ** Phoenix Tree Holdings Ltd , up 23.1% ** Ibio Inc , up 15.8% The top three NYSE .PL.N percentage losers: ** Velocity Financial Inc , down 14.7% ** Camping World Holdings Inc , down 11% ** Portland General Electric Co , down 10% The top three Nasdaq .PG.O percentage gainers: ** Vivopower International Plc , up 38.9% ** Gores Holdings IV Inc , up 38.2% ** Sigma Labs Inc , up 31.1% The top three Nasdaq .PL.O percentage losers: ** Sonnet Biotherapeutics Holdings Inc , down 20.2% ** Children's Place , down 19.1% ** YRC Worldwide Inc , down 16.7% ** Starbucks Corp SBUX.O: up 5.0% BUZZ-Stifel expects shares to grind higher as sales recover USN ** Salesforce.com CRM.N: up 3.6% BUZZ-Set for record high; Honeywell, Amgen gain on Dow addition ** Viveve Medical Inc VIVE.O: up 97.8% BUZZ-Surges on positive study results ** Exxon Mobil Corp XOM.N: down 3.2% BUZZ-Slips after Dow Jones drops oil giant following shake-up ** Medtronic Plc MDT.N: up 2.5% BUZZ-Rises as Q1 profit falls less than expected ** Best Buy Co BBY.N: down 4.6% BUZZ-Falls after sales growth warning ** J.M.
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Smucker Co SJM.N: up 8.0% BUZZ-Eyes best day in nearly 3 months on upbeat results, outlook ** Children's Place Inc PLCE.O: down 19.1% BUZZ-Drops after wider-than-expected Q2 loss ** ReneSola Ltd SOL.N: up 3.5% BUZZ-Rises on asset purchase in an all-stock deal ** Gap Inc GPS.N: up 8.5% BUZZ-Rises after Citi upgrades rating to 'buy' ** Ovid Therapeutics OVID.O: up 2.4% BUZZ-Set for record rise on epilepsy drug progress ** Smith & Wesson SWBI.O: up 6.5% BUZZ-Cowen reinstates with "outperform" on firearms pure play ** Crocs Inc CROX.O: up 0.7% BUZZ-Rises on footwear deal with Vera Bradley ** Sarepta Therapeutics Inc SRPT.O: up 2.7% BUZZ-Rises as FDA accepts marketing application for muscle disorder drug ** Tiffany & Co TIF.N: down 3.5% BUZZ-Slides as LVMH reserves right to challenge new deal deadline ** Sigma Labs SGLB.O: up 31.1% BUZZ-Hits over 5-month high on contract with Mitsubishi Heavy Industries ** Apple Inc AAPL.O: down 1.5% BUZZ-Set to snap five-day winning streak ** Vital Farms Inc VITL.O: down 5.1% BUZZ-Vital Farms sags as initiations by IPO banks lean "neutral" ** Alphabet Inc GOOGL.O: up 0.9% BUZZ-UBS hikes PT on ad growth prospects, recovery hopes ** Hain Celestial Group HAIN.O: down 11.8% BUZZ-Falls as CEO flags slower H2 growth ** Ford Motor Co F.N: down 1.1% BUZZ-Dips after recalling over 500 Explorer, Lincoln Aviator SUVs ** Facebook Inc FB.O: up 2.9% BUZZ-Rises as UBS hikes PT to Street's highest ** Exterran Corp EXTN.N: down 1.7% BUZZ-Exterran to sell natgas compression assets to Canada's Compass, shares fall ** Alibaba Group Holding Ltd BABA.N: up 4.5% ** Pinduoduo Inc PDD.O: up 5.7% BUZZ-U.S.-listed Chinese firms rise on trade optimism ** American Airlines Group Inc AAL.O: down 3.1% BUZZ-Falls on plans to cut 19,000 jobs when U.S. aid expires ** 21Vianet Group Inc VNET.O: down 4.8% BUZZ-Chinese data center co 21Vianet slides on planned equity offering The 11 major S&P 500 sectors: Communication Services .N At 13:00 ET, the Dow Jones Industrial Average .DJI was down 0.50% at 28,166.24. The top three S&P 500 .PG.INX percentage gainers: ** Gap Inc , up 8.5% ** J M Smucker Co , up 8% ** Amgen Inc , up 5.4% The top three S&P 500 .PL.INX percentage losers: ** Best Buy Co Inc , down 4.6% ** United Airlines Holdings Inc , down 4% ** Carnival Corp , down 3.8% The top three NYSE .PG.N percentage gainers: ** FTS International Inc , up 29.5% ** Phoenix Tree Holdings Ltd , up 23.1% ** Ibio Inc , up 15.8% The top three NYSE .PL.N percentage losers: ** Velocity Financial Inc , down 14.7% ** Camping World Holdings Inc , down 11% ** Portland General Electric Co , down 10% The top three Nasdaq .PG.O percentage gainers: ** Vivopower International Plc , up 38.9% ** Gores Holdings IV Inc , up 38.2% ** Sigma Labs Inc , up 31.1% The top three Nasdaq .PL.O percentage losers: ** Sonnet Biotherapeutics Holdings Inc , down 20.2% ** Children's Place , down 19.1% ** YRC Worldwide Inc , down 16.7% ** Starbucks Corp SBUX.O: up 5.0% BUZZ-Stifel expects shares to grind higher as sales recover USN ** Salesforce.com CRM.N: up 3.6% BUZZ-Set for record high; Honeywell, Amgen gain on Dow addition ** Viveve Medical Inc VIVE.O: up 97.8% BUZZ-Surges on positive study results ** Exxon Mobil Corp XOM.N: down 3.2% BUZZ-Slips after Dow Jones drops oil giant following shake-up ** Medtronic Plc MDT.N: up 2.5% BUZZ-Rises as Q1 profit falls less than expected ** Best Buy Co BBY.N: down 4.6% BUZZ-Falls after sales growth warning ** J.M.
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Smucker Co SJM.N: up 8.0% BUZZ-Eyes best day in nearly 3 months on upbeat results, outlook ** Children's Place Inc PLCE.O: down 19.1% BUZZ-Drops after wider-than-expected Q2 loss ** ReneSola Ltd SOL.N: up 3.5% BUZZ-Rises on asset purchase in an all-stock deal ** Gap Inc GPS.N: up 8.5% BUZZ-Rises after Citi upgrades rating to 'buy' ** Ovid Therapeutics OVID.O: up 2.4% BUZZ-Set for record rise on epilepsy drug progress ** Smith & Wesson SWBI.O: up 6.5% BUZZ-Cowen reinstates with "outperform" on firearms pure play ** Crocs Inc CROX.O: up 0.7% BUZZ-Rises on footwear deal with Vera Bradley ** Sarepta Therapeutics Inc SRPT.O: up 2.7% BUZZ-Rises as FDA accepts marketing application for muscle disorder drug ** Tiffany & Co TIF.N: down 3.5% BUZZ-Slides as LVMH reserves right to challenge new deal deadline ** Sigma Labs SGLB.O: up 31.1% BUZZ-Hits over 5-month high on contract with Mitsubishi Heavy Industries ** Apple Inc AAPL.O: down 1.5% BUZZ-Set to snap five-day winning streak ** Vital Farms Inc VITL.O: down 5.1% BUZZ-Vital Farms sags as initiations by IPO banks lean "neutral" ** Alphabet Inc GOOGL.O: up 0.9% BUZZ-UBS hikes PT on ad growth prospects, recovery hopes ** Hain Celestial Group HAIN.O: down 11.8% BUZZ-Falls as CEO flags slower H2 growth ** Ford Motor Co F.N: down 1.1% BUZZ-Dips after recalling over 500 Explorer, Lincoln Aviator SUVs ** Facebook Inc FB.O: up 2.9% BUZZ-Rises as UBS hikes PT to Street's highest ** Exterran Corp EXTN.N: down 1.7% BUZZ-Exterran to sell natgas compression assets to Canada's Compass, shares fall ** Alibaba Group Holding Ltd BABA.N: up 4.5% ** Pinduoduo Inc PDD.O: up 5.7% BUZZ-U.S.-listed Chinese firms rise on trade optimism ** American Airlines Group Inc AAL.O: down 3.1% BUZZ-Falls on plans to cut 19,000 jobs when U.S. aid expires ** 21Vianet Group Inc VNET.O: down 4.8% BUZZ-Chinese data center co 21Vianet slides on planned equity offering The 11 major S&P 500 sectors: Communication Services The top three S&P 500 .PG.INX percentage gainers: ** Gap Inc , up 8.5% ** J M Smucker Co , up 8% ** Amgen Inc , up 5.4% The top three S&P 500 .PL.INX percentage losers: ** Best Buy Co Inc , down 4.6% ** United Airlines Holdings Inc , down 4% ** Carnival Corp , down 3.8% The top three NYSE .PG.N percentage gainers: ** FTS International Inc , up 29.5% ** Phoenix Tree Holdings Ltd , up 23.1% ** Ibio Inc , up 15.8% The top three NYSE .PL.N percentage losers: ** Velocity Financial Inc , down 14.7% ** Camping World Holdings Inc , down 11% ** Portland General Electric Co , down 10% The top three Nasdaq .PG.O percentage gainers: ** Vivopower International Plc , up 38.9% ** Gores Holdings IV Inc , up 38.2% ** Sigma Labs Inc , up 31.1% The top three Nasdaq .PL.O percentage losers: ** Sonnet Biotherapeutics Holdings Inc , down 20.2% ** Children's Place , down 19.1% ** YRC Worldwide Inc , down 16.7% ** Starbucks Corp SBUX.O: up 5.0% BUZZ-Stifel expects shares to grind higher as sales recover USN ** Salesforce.com CRM.N: up 3.6% BUZZ-Set for record high; Honeywell, Amgen gain on Dow addition ** Viveve Medical Inc VIVE.O: up 97.8% BUZZ-Surges on positive study results ** Exxon Mobil Corp XOM.N: down 3.2% BUZZ-Slips after Dow Jones drops oil giant following shake-up ** Medtronic Plc MDT.N: up 2.5% BUZZ-Rises as Q1 profit falls less than expected ** Best Buy Co BBY.N: down 4.6% BUZZ-Falls after sales growth warning ** J.M. up 0.60% Consumer Discretionary
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Smucker Co SJM.N: up 8.0% BUZZ-Eyes best day in nearly 3 months on upbeat results, outlook ** Children's Place Inc PLCE.O: down 19.1% BUZZ-Drops after wider-than-expected Q2 loss ** ReneSola Ltd SOL.N: up 3.5% BUZZ-Rises on asset purchase in an all-stock deal ** Gap Inc GPS.N: up 8.5% BUZZ-Rises after Citi upgrades rating to 'buy' ** Ovid Therapeutics OVID.O: up 2.4% BUZZ-Set for record rise on epilepsy drug progress ** Smith & Wesson SWBI.O: up 6.5% BUZZ-Cowen reinstates with "outperform" on firearms pure play ** Crocs Inc CROX.O: up 0.7% BUZZ-Rises on footwear deal with Vera Bradley ** Sarepta Therapeutics Inc SRPT.O: up 2.7% BUZZ-Rises as FDA accepts marketing application for muscle disorder drug ** Tiffany & Co TIF.N: down 3.5% BUZZ-Slides as LVMH reserves right to challenge new deal deadline ** Sigma Labs SGLB.O: up 31.1% BUZZ-Hits over 5-month high on contract with Mitsubishi Heavy Industries ** Apple Inc AAPL.O: down 1.5% BUZZ-Set to snap five-day winning streak ** Vital Farms Inc VITL.O: down 5.1% BUZZ-Vital Farms sags as initiations by IPO banks lean "neutral" ** Alphabet Inc GOOGL.O: up 0.9% BUZZ-UBS hikes PT on ad growth prospects, recovery hopes ** Hain Celestial Group HAIN.O: down 11.8% BUZZ-Falls as CEO flags slower H2 growth ** Ford Motor Co F.N: down 1.1% BUZZ-Dips after recalling over 500 Explorer, Lincoln Aviator SUVs ** Facebook Inc FB.O: up 2.9% BUZZ-Rises as UBS hikes PT to Street's highest ** Exterran Corp EXTN.N: down 1.7% BUZZ-Exterran to sell natgas compression assets to Canada's Compass, shares fall ** Alibaba Group Holding Ltd BABA.N: up 4.5% ** Pinduoduo Inc PDD.O: up 5.7% BUZZ-U.S.-listed Chinese firms rise on trade optimism ** American Airlines Group Inc AAL.O: down 3.1% BUZZ-Falls on plans to cut 19,000 jobs when U.S. aid expires ** 21Vianet Group Inc VNET.O: down 4.8% BUZZ-Chinese data center co 21Vianet slides on planned equity offering The 11 major S&P 500 sectors: Communication Services Eikon search string for individual stock moves: STXBZ The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh The S&P 500 was little changed on Tuesday with investors staying on the sidelines following a three-day rally, as optimism from U.S. and China officials pledging firm commitment to a Phase 1 trade deal petered out. .N At 13:00 ET, the Dow Jones Industrial Average .DJI was down 0.50% at 28,166.24.
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5363.0
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2020-08-25 00:00:00 UTC
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American Airlines to cut 19,000 jobs when U.S. aid expires in October
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AAL
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https://www.nasdaq.com/articles/american-airlines-to-cut-19000-jobs-when-u.s.-aid-expires-in-october-2020-08-25
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nan
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nan
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By Tracy Rucinski
CHICAGO, Aug 25 (Reuters) - American Airlines AAL.O said on Tuesday it will cut 19,000 U.S. jobs in October as the COVID-19 pandemic continues to weigh on air travel, unless the government extends aid for airline employee payrolls.
Airlines received $25 billion in U.S. government stimulus funds in March meant to cover payrolls and protect jobs through September. As the money runs out without a travel recovery in sight, airlines and unions have lobbied Washington for another $25 billion, but talks have stalled.
Including voluntary exits and leaves, American's workforce will shrink to around 100,000 in October from the 140,000 it employed in March.
"In short, American’s team will have at least 40,000 fewer people working Oct. 1 than we had when we entered this pandemic," Chief Executive Doug Parker and President Robert Isom said in a memo to employees that was reviewed by Reuters.
The October job cuts comprise 17,500 furloughs of union workers -including 1,600 pilots and 8,100 flight attendants - and 1,500 management positions.
Based on current demand levels, American now plans to fly less than 50% of its normal schedule in the fourth quarter, with international flying reduced to only a quarter of 2019 levels, Parker and Isom said in the memo.
(Reporting by Tracy Rucinski; Editing by Steve Orlofsky)
((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.
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By Tracy Rucinski CHICAGO, Aug 25 (Reuters) - American Airlines AAL.O said on Tuesday it will cut 19,000 U.S. jobs in October as the COVID-19 pandemic continues to weigh on air travel, unless the government extends aid for airline employee payrolls. Airlines received $25 billion in U.S. government stimulus funds in March meant to cover payrolls and protect jobs through September. As the money runs out without a travel recovery in sight, airlines and unions have lobbied Washington for another $25 billion, but talks have stalled.
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By Tracy Rucinski CHICAGO, Aug 25 (Reuters) - American Airlines AAL.O said on Tuesday it will cut 19,000 U.S. jobs in October as the COVID-19 pandemic continues to weigh on air travel, unless the government extends aid for airline employee payrolls. The October job cuts comprise 17,500 furloughs of union workers -including 1,600 pilots and 8,100 flight attendants - and 1,500 management positions. Based on current demand levels, American now plans to fly less than 50% of its normal schedule in the fourth quarter, with international flying reduced to only a quarter of 2019 levels, Parker and Isom said in the memo.
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By Tracy Rucinski CHICAGO, Aug 25 (Reuters) - American Airlines AAL.O said on Tuesday it will cut 19,000 U.S. jobs in October as the COVID-19 pandemic continues to weigh on air travel, unless the government extends aid for airline employee payrolls. "In short, American’s team will have at least 40,000 fewer people working Oct. 1 than we had when we entered this pandemic," Chief Executive Doug Parker and President Robert Isom said in a memo to employees that was reviewed by Reuters. Based on current demand levels, American now plans to fly less than 50% of its normal schedule in the fourth quarter, with international flying reduced to only a quarter of 2019 levels, Parker and Isom said in the memo.
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By Tracy Rucinski CHICAGO, Aug 25 (Reuters) - American Airlines AAL.O said on Tuesday it will cut 19,000 U.S. jobs in October as the COVID-19 pandemic continues to weigh on air travel, unless the government extends aid for airline employee payrolls. As the money runs out without a travel recovery in sight, airlines and unions have lobbied Washington for another $25 billion, but talks have stalled. Including voluntary exits and leaves, American's workforce will shrink to around 100,000 in October from the 140,000 it employed in March.
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5364.0
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2020-08-25 00:00:00 UTC
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S&P 500 struggles for direction as trade deal optimism fades
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AAL
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https://www.nasdaq.com/articles/sp-500-struggles-for-direction-as-trade-deal-optimism-fades-2020-08-25
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nan
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nan
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By Medha Singh and Devik Jain
Aug 25 (Reuters) - The S&P 500 was little changed on Tuesday with investors staying on the sidelines following a three-day rally, as optimism from U.S. and China officials pledging firm commitment to a Phase 1 trade deal petered out.
The benchmark S&P 500 opened at a record high as the news eased some concerns the deal could be on shaky ground, but the sentiment soon faded as China said it had lodged "stern representations" with the United States, accusing it of sending a U.S. spy plane into a no-fly zone over Chinese live-fire military drills.
"There is beginning to be more and more tension between the two biggest economies in the world," said John Cunnison, chief investment officer of Baker Boyer in Washington.
The S&P 500 and Nasdaq logged new closing highs on Monday, boosted by signs of progress in developing treatments and vaccines for COVID-19.
The benchmark index surpassed its pre-pandemic high last week, even as recent economic indicators signaled a bumpy recovery from the virus-induced downturn.
A survey from the Conference Board showed U.S. consumer confidence unexpectedly fell in August to a six-year low.
The centerpiece event of the week is an annual conference of U.S. central bankers where Federal Reserve Chairman Jerome Powell is scheduled to speak.
Among stocks, Salesforce.com Inc CRM.N, Amgen Inc AMGN.O and Honeywell International Inc HON.N rose between 3.3% and 5.5% on news they would join the blue-chip Dow Jones Industrial Average index on Aug. 31.
Cloud computing heavyweight Salesforce is expected to report second-quarter results after markets close.
The three companies will replace Exxon Mobil Corp XOM.N, Pfizer Inc PFE.N and Raytheon Technologies Corp RTX.N, which were down between 1.5% and 3.1% and were among the top drags on the S&P 500.
Exxon's drop also dragged the energy sector .SPNY down 1.6% despite oil prices touching 5-month highs. O/R
Apple Inc's AAPL.O 1.4% drop weighed heavily on the three main indexes and the company's shares were on course to fall after five days of gains.
At 12:44 p.m. ET, the Dow Jones Industrial Average .DJI was down 139.55 points, or 0.49%, at 28,168.91, the S&P 500 .SPX was up 1.86 points, or 0.05%, at 3,433.14. The Nasdaq Composite .IXIC was up 33.62 points, or 0.30%, at 11,413.34.
Medtronic MDT.N rose 2.3% after the company said demand for medical devices was improving as elective surgeries picked up pace, even as it posted a plunge in first-quarter profit.
Medtronic and Amgen's shares pushed the healthcare sector .SPXHC 0.5% higher, providing the biggest boost to the benchmark S&P 500.
American Airlines Group Inc AAL.O dropped 3.1% after it said its workforce will shrink by 40,000, including 19,000 involuntary cuts, in October unless the government extends aid for airline employee payrolls.
Declining issues outnumbered advancers for a 1.62-to-1 ratio on the NYSE and a 1.07-to-1 ratio on the Nasdaq.
The S&P index recorded 25 new 52-week highs and no new low, while the Nasdaq recorded 53 new highs and 22 new lows.
(Reporting by Medha Singh and Devik Jain in Bengaluru; Editing by Bernard Orr, Arun Koyyur and Shounak Dasgupta)
((Medha.Singh@thomsonreuters.com; within U.S. +1646 223 8780, outside U.S. +91 80 6749 1130; Twitter: https://twitter.com/medhasinghs))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines Group Inc AAL.O dropped 3.1% after it said its workforce will shrink by 40,000, including 19,000 involuntary cuts, in October unless the government extends aid for airline employee payrolls. By Medha Singh and Devik Jain Aug 25 (Reuters) - The S&P 500 was little changed on Tuesday with investors staying on the sidelines following a three-day rally, as optimism from U.S. and China officials pledging firm commitment to a Phase 1 trade deal petered out. The benchmark S&P 500 opened at a record high as the news eased some concerns the deal could be on shaky ground, but the sentiment soon faded as China said it had lodged "stern representations" with the United States, accusing it of sending a U.S. spy plane into a no-fly zone over Chinese live-fire military drills.
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American Airlines Group Inc AAL.O dropped 3.1% after it said its workforce will shrink by 40,000, including 19,000 involuntary cuts, in October unless the government extends aid for airline employee payrolls. Among stocks, Salesforce.com Inc CRM.N, Amgen Inc AMGN.O and Honeywell International Inc HON.N rose between 3.3% and 5.5% on news they would join the blue-chip Dow Jones Industrial Average index on Aug. 31. ET, the Dow Jones Industrial Average .DJI was down 139.55 points, or 0.49%, at 28,168.91, the S&P 500 .SPX was up 1.86 points, or 0.05%, at 3,433.14.
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American Airlines Group Inc AAL.O dropped 3.1% after it said its workforce will shrink by 40,000, including 19,000 involuntary cuts, in October unless the government extends aid for airline employee payrolls. The benchmark S&P 500 opened at a record high as the news eased some concerns the deal could be on shaky ground, but the sentiment soon faded as China said it had lodged "stern representations" with the United States, accusing it of sending a U.S. spy plane into a no-fly zone over Chinese live-fire military drills. The S&P index recorded 25 new 52-week highs and no new low, while the Nasdaq recorded 53 new highs and 22 new lows.
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American Airlines Group Inc AAL.O dropped 3.1% after it said its workforce will shrink by 40,000, including 19,000 involuntary cuts, in October unless the government extends aid for airline employee payrolls. By Medha Singh and Devik Jain Aug 25 (Reuters) - The S&P 500 was little changed on Tuesday with investors staying on the sidelines following a three-day rally, as optimism from U.S. and China officials pledging firm commitment to a Phase 1 trade deal petered out. ET, the Dow Jones Industrial Average .DJI was down 139.55 points, or 0.49%, at 28,168.91, the S&P 500 .SPX was up 1.86 points, or 0.05%, at 3,433.14.
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5365.0
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2020-08-25 00:00:00 UTC
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American Airlines Group Reaches Analyst Target Price
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AAL
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https://www.nasdaq.com/articles/american-airlines-group-reaches-analyst-target-price-2020-08-25
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nan
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nan
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In recent trading, shares of American Airlines Group Inc (Symbol: AAL) have crossed above the average analyst 12-month target price of $12.36, changing hands for $13.44/share. When a stock reaches the target an analyst has set, the analyst logically has two ways to react: downgrade on valuation, or, re-adjust their target price to a higher level. Analyst reaction may also depend on the fundamental business developments that may be responsible for driving the stock price higher — if things are looking up for the company, perhaps it is time for that target price to be raised.
There are 11 different analyst targets contributing to that average for American Airlines Group Inc, but the average is just that — a mathematical average. There are analysts with lower targets than the average, including one looking for a price of $1.00. And then on the other side of the spectrum one analyst has a target as high as $27.00. The standard deviation is $7.256.
But the whole reason to look at the average AAL price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes. And so with AAL crossing above that average target price of $12.36/share, investors in AAL have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $12.36 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table? Below is a table showing the current thinking of the analysts that cover American Airlines Group Inc:
RECENT AAL ANALYST RATINGS BREAKDOWN
» Current 1 Month Ago 2 Month Ago 3 Month Ago
Strong buy ratings: 3 3 3 2
Buy ratings: 0 0 0 0
Hold ratings: 4 3 3 4
Sell ratings: 1 1 0 1
Strong sell ratings: 5 6 6 5
Average rating: 3.38 3.54 3.5 3.58
The average rating presented in the last row of the above table above is from 1 to 5 where 1 is Strong Buy and 5 is Strong Sell. This article used data provided by Zacks Investment Research via Quandl.com. Get the latest Zacks research report on AAL — FREE.
The Top 25 Broker Analyst Picks of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In recent trading, shares of American Airlines Group Inc (Symbol: AAL) have crossed above the average analyst 12-month target price of $12.36, changing hands for $13.44/share. And so with AAL crossing above that average target price of $12.36/share, investors in AAL have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $12.36 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table? But the whole reason to look at the average AAL price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes.
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In recent trading, shares of American Airlines Group Inc (Symbol: AAL) have crossed above the average analyst 12-month target price of $12.36, changing hands for $13.44/share. But the whole reason to look at the average AAL price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes. And so with AAL crossing above that average target price of $12.36/share, investors in AAL have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $12.36 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table?
|
And so with AAL crossing above that average target price of $12.36/share, investors in AAL have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $12.36 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table? In recent trading, shares of American Airlines Group Inc (Symbol: AAL) have crossed above the average analyst 12-month target price of $12.36, changing hands for $13.44/share. But the whole reason to look at the average AAL price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes.
|
In recent trading, shares of American Airlines Group Inc (Symbol: AAL) have crossed above the average analyst 12-month target price of $12.36, changing hands for $13.44/share. But the whole reason to look at the average AAL price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes. And so with AAL crossing above that average target price of $12.36/share, investors in AAL have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $12.36 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table?
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5366.0
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2020-08-25 00:00:00 UTC
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At These Prices, the Runway Is Clear for You to Buy Spirit Airlines Stock
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AAL
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https://www.nasdaq.com/articles/at-these-prices-the-runway-is-clear-for-you-to-buy-spirit-airlines-stock-2020-08-25
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Compared to more famous companies like American Airlines (NASDAQ:AAL), United Airlines (NASDAQ:UAL), and Delta Air Lines (NYSE:DAL), people tend to think of Spirit Airlines (NYSE:SAVE) as a lesser competitor. As a result, SAVE stock is often left out of discussions among airline-industry investors.
SAVE) branded airplane flying in the air" width="300" height="169">
Source: Markus Mainka / Shutterstock.com
That’s regrettable as the value proposition of SAVE stock is highly compelling right now. Just because Spirit is a “discount” airline doesn’t mean that the company isn’t competitive.
There’s no guarantee whatsoever that SAVE stock will quickly recover from the fiscal impact of the novel coronavirus. Long-term shareholders might have to wait until 2021 before they can get back to the break-even point, unfortunately.
On the other hand, bold investors might take a chance on Spirit as recent data suggests a pickup in domestic airline travel. This, along with the company’s forward-thinking cost-cutting measures, should reassure investors that SAVE stock is ready for takeoff.
A Closer Look at SAVE Stock
For the time being, admittedly, SAVE stock is merely taxiing down the runway. Even prior to the onset of the coronavirus, SAVE shares were in a relentless state of decline.
7 Safe Stocks to Buy That Can Shrug Off the Growing Volatility
After peaking at the $64 level in late 2018, SAVE stock had descended to the $43 area by early February of this year. That’s when Covid-19 wreaked havoc on the stock market and there was no soft landing for SAVE investors.
The share price bottomed out at the 52-week low of $7.01, but there was some recovery afterwards and SAVE stock closed near $17 on Aug. 21. Value-focused investors could view this as a rare opportunity to buy the shares at a deep discount.
But whether it’s really a discount depends on the outlook for the company and, just as importantly, the airline industry in general. Does the data suggest that there’s hope on the horizon?
Eyes on the Skies
SAVE investors should remain confident as recent data does indeed indicate a pickup in flying activity, at least domestically. Specifically, in August the Transportation Security Administration (TSA) recorded five consecutive days in which TSA airport staff had screened more than 700,000 daily passengers.
As a point of reference, we can compare this to late April’s domestic travel volumes. Believe it or not, during that time, the number of daily screened passengers fell below 100,000.
Thus, even without a coronavirus vaccine available to the public, there’s already been a marked pickup in air travel activity. Evidently, even a global pandemic can’t destroy the aviation market.
And Warren Buffett, who famously sold off his airline shares a few months ago, might have made a big mistake in doing so. Yet, what sets Spirit apart from the company’s competitors?
Smaller Can Be Better
During these challenging economic times, being known as a discount airline could actually prove to be a major advantage for Spirit. While some of the other airlines might be bigger and fancier, Spirit is known for providing a cheap way to fly.
That’s an advantage when people and businesses are operating on a tight budget. In that light, times of slow growth could actually favor a budget-friendly airline like Spirit.
Citigroup analyst Stephen Trent seems to concur with this assessment.
“An ongoing, choppy traffic recovery, combined with what looks to be continued weak pricing, looks like a good setup for Buy-rated Spirit,” Trent wrote.
This factor, along with cost-cutting measures, add up to a compelling reward-to-risk profile for SAVE stock. Spirit recently provided advance notice that in October the company might furlough 20% to 30% of its pilots, flight attendants and other staff.
That’s bad news for the folks at Spirit who might lose their paychecks. For shareholders, however, it’s a sign that Spirit is prepared to do what’s necessary to stay in business.
The Bottom Line
Contrarian investors should view SAVE stock as a beaten-down asset with “recovery trade” written all over it. When times get tough, low-cost carriers can outperform and Spirit shares could fly high when we least expect them to.
As of this writing, David Moadel did not hold a position in any of the aforementioned securities.
The post At These Prices, the Runway Is Clear for You to Buy Spirit 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.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Compared to more famous companies like American Airlines (NASDAQ:AAL), United Airlines (NASDAQ:UAL), and Delta Air Lines (NYSE:DAL), people tend to think of Spirit Airlines (NYSE:SAVE) as a lesser competitor. On the other hand, bold investors might take a chance on Spirit as recent data suggests a pickup in domestic airline travel. “An ongoing, choppy traffic recovery, combined with what looks to be continued weak pricing, looks like a good setup for Buy-rated Spirit,” Trent wrote.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Compared to more famous companies like American Airlines (NASDAQ:AAL), United Airlines (NASDAQ:UAL), and Delta Air Lines (NYSE:DAL), people tend to think of Spirit Airlines (NYSE:SAVE) as a lesser competitor. On the other hand, bold investors might take a chance on Spirit as recent data suggests a pickup in domestic airline travel. The Bottom Line Contrarian investors should view SAVE stock as a beaten-down asset with “recovery trade” written all over it.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Compared to more famous companies like American Airlines (NASDAQ:AAL), United Airlines (NASDAQ:UAL), and Delta Air Lines (NYSE:DAL), people tend to think of Spirit Airlines (NYSE:SAVE) as a lesser competitor. On the other hand, bold investors might take a chance on Spirit as recent data suggests a pickup in domestic airline travel. A Closer Look at SAVE Stock For the time being, admittedly, SAVE stock is merely taxiing down the runway.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Compared to more famous companies like American Airlines (NASDAQ:AAL), United Airlines (NASDAQ:UAL), and Delta Air Lines (NYSE:DAL), people tend to think of Spirit Airlines (NYSE:SAVE) as a lesser competitor. On the other hand, bold investors might take a chance on Spirit as recent data suggests a pickup in domestic airline travel. The share price bottomed out at the 52-week low of $7.01, but there was some recovery afterwards and SAVE stock closed near $17 on Aug. 21.
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5367.0
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2020-08-25 00:00:00 UTC
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COLUMN-Rio Tinto's weak response to cave blasts will trigger stronger reaction: Russell
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AAL
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https://www.nasdaq.com/articles/column-rio-tintos-weak-response-to-cave-blasts-will-trigger-stronger-reaction%3A-russell-0
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nan
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nan
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By Clyde Russell
LAUNCESTON, Australia, Aug 25 (Reuters) - Rio Tinto may have inadvertently triggered the law of unintended consequences with its blasting of an Aboriginal heritage site at one of its Australian iron ore mines, and the subsequent slap on the wrists for some senior executives.
The board of Rio RIO.AX cut the bonuses of three senior executives including Chief Executive Jean-Sébastien Jacques as part of the company's review into the destruction of two historically significant caves in Western Australia state, against the wishes of the Aboriginal traditional owners.
Rio, which overtook Brazil's Vale VALE3.SA as the world's biggest iron ore miner last year, destroyed the Juukan Gorge caves in May as part of an expansion of its Brockman 4 mine.
While the blasting met legal requirements, Rio has faced a public and investor backlash for allegedly putting profits ahead of heritage, a view amplified by the revelation that the company had alternatives to destroying the caves but chose not to pursue them.
The Rio board review said there was no single "root cause or error" that resulted in the destruction of the caves, rather it was a "series of decisions, actions and omissions over an extended period of time."
The board recommended improving procedures and setting up new processes to ensure this type of incident doesn't happen again.
The board's review likely fails what Australians refer to as the "pub test," which means whether the average patrons of a typical bar believe the actions are reasonable and appropriate.
The loss of about $3.7 million in bonuses for the three executives is a very mild punishment, given their level of remuneration and the fact that Jacques, along with head of iron ore Chris Salisbury and Simone Niven, the executive responsible for corporate relations, bear responsibility for what has become a public relations disaster for the company.
The board's soft-pedalling of the cave destruction was condemned by shareholder advocacy group the Australasian Corporate Centre for Responsibility, and several institutional investors.
While Rio will no doubt hope the issue blows over with the passage of time, it's more likely that it leads to a renewed focus on environment, social and governance (ESG) issues.
Shareholders are becoming increasingly aware of the financial risks of companies that are viewed as not having leading ESG programmes and a culture of doing the right thing.
Social licence to operate, along with climate change, comes up often as the top concerns for miners, with a survey last year by consultants EY showing 44% of mining executives viewed keeping a social licence as their top concern.
MINERS TO CHANGE?
Unfortunately, the Rio incident with the Juukan caves shows that miners may still have some way to go in order to be seen to be placing ESG issues at the heart of their operations.
Rio isn't alone in this, with other leading mining companies seeming to fall short in this area, despite public commitments that it is their top priority.
Like Rio's corporate affairs boss Niven, other miners have executives listed as having responsibility for ESG issues, such as outgoing BHP BHP.AX external affairs chief Geoff Healy, Tim Langmead at Fortescue Metals Group FMG.AX, Anik Michaud at Anglo American AAL.L and Luiz Osorio at Vale.
Glencore GLEN.L is unusual among major miners in not having an executive with ESG responsibilities listed on its website.
But merely having an executive named doesn't mean these people are among the most important decision makers in the companies they work for.
All the executives' names above have additional responsibilities and none of them have a public profile worth speaking about.
In effect, they are largely invisible and take little or no public part in the debate over ESG issues.
This hardly speaks to mining companies that appear to view ESG issues as front and centre of their existence.
For companies to be taken seriously, it would likely take the appointment of senior executives, with real power over the decision-making process, to become involved in placing ESG at the heart of each company's mission.
If Rio had somebody like this, somebody could have stopped the blasting even if the CEO wanted it to proceed, somebody who understood that the negative optics of blowing up the caves considerably outweighed the potential profits, then it may have avoided the current mess.
However, it's likely that ongoing shareholder demands for increased ESG accountability, coupled with activism by interest groups, will force miners down the path of making ESG more than just the current statements of principle.
(Editing by Stephen Coates)
((clyde.russell@thomsonreuters.com)(+61 437 622 448)(Reuters Messaging: clyde.russell.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Like Rio's corporate affairs boss Niven, other miners have executives listed as having responsibility for ESG issues, such as outgoing BHP BHP.AX external affairs chief Geoff Healy, Tim Langmead at Fortescue Metals Group FMG.AX, Anik Michaud at Anglo American AAL.L and Luiz Osorio at Vale. By Clyde Russell LAUNCESTON, Australia, Aug 25 (Reuters) - Rio Tinto may have inadvertently triggered the law of unintended consequences with its blasting of an Aboriginal heritage site at one of its Australian iron ore mines, and the subsequent slap on the wrists for some senior executives. Rio, which overtook Brazil's Vale VALE3.SA as the world's biggest iron ore miner last year, destroyed the Juukan Gorge caves in May as part of an expansion of its Brockman 4 mine.
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Like Rio's corporate affairs boss Niven, other miners have executives listed as having responsibility for ESG issues, such as outgoing BHP BHP.AX external affairs chief Geoff Healy, Tim Langmead at Fortescue Metals Group FMG.AX, Anik Michaud at Anglo American AAL.L and Luiz Osorio at Vale. The board of Rio RIO.AX cut the bonuses of three senior executives including Chief Executive Jean-Sébastien Jacques as part of the company's review into the destruction of two historically significant caves in Western Australia state, against the wishes of the Aboriginal traditional owners. Social licence to operate, along with climate change, comes up often as the top concerns for miners, with a survey last year by consultants EY showing 44% of mining executives viewed keeping a social licence as their top concern.
|
Like Rio's corporate affairs boss Niven, other miners have executives listed as having responsibility for ESG issues, such as outgoing BHP BHP.AX external affairs chief Geoff Healy, Tim Langmead at Fortescue Metals Group FMG.AX, Anik Michaud at Anglo American AAL.L and Luiz Osorio at Vale. The board of Rio RIO.AX cut the bonuses of three senior executives including Chief Executive Jean-Sébastien Jacques as part of the company's review into the destruction of two historically significant caves in Western Australia state, against the wishes of the Aboriginal traditional owners. The loss of about $3.7 million in bonuses for the three executives is a very mild punishment, given their level of remuneration and the fact that Jacques, along with head of iron ore Chris Salisbury and Simone Niven, the executive responsible for corporate relations, bear responsibility for what has become a public relations disaster for the company.
|
Like Rio's corporate affairs boss Niven, other miners have executives listed as having responsibility for ESG issues, such as outgoing BHP BHP.AX external affairs chief Geoff Healy, Tim Langmead at Fortescue Metals Group FMG.AX, Anik Michaud at Anglo American AAL.L and Luiz Osorio at Vale. The board of Rio RIO.AX cut the bonuses of three senior executives including Chief Executive Jean-Sébastien Jacques as part of the company's review into the destruction of two historically significant caves in Western Australia state, against the wishes of the Aboriginal traditional owners. Unfortunately, the Rio incident with the Juukan caves shows that miners may still have some way to go in order to be seen to be placing ESG issues at the heart of their operations.
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5368.0
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2020-08-25 00:00:00 UTC
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COLUMN-Rio Tinto's weak response to cave blasts will trigger stronger reaction: Russell
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AAL
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https://www.nasdaq.com/articles/column-rio-tintos-weak-response-to-cave-blasts-will-trigger-stronger-reaction%3A-russell
|
nan
|
nan
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By Clyde Russell
LAUNCESTON, Australia, Aug 25 (Reuters) - Rio Tinto may have inadvertently triggered the law of unintended consequences with its blasting of an Aboriginal heritage site at one of its Australian iron ore mines, and the subsequent slap on the wrists for some senior executives.
The board of Rio RIO.AX cut the bonuses of three senior executives including Chief Executive Jean-Sébastien Jacques as part of the company's review into the destruction of two historically significant caves in Western Australia state, against the wishes of the Aboriginal traditional owners.
Rio, which overtook Brazil's Vale VALE3.SA as the world's biggest iron ore miner last year, destroyed the Juukan Gorge caves in May as part of an expansion of its Brockman 4 mine.
While the blasting met legal requirements, Rio has faced a public and investor backlash for allegedly putting profits ahead of heritage, a view amplified by the revelation that the company had alternatives to destroying the caves but chose not to pursue them.
The Rio board review said there was no single "root cause or error" that resulted in the destruction of the caves, rather it was a "series of decisions, actions and omissions over an extended period of time."
The board recommended improving procedures and setting up new processes to ensure this type of incident doesn't happen again.
The board's review likely fails what Australians refer to as the "pub test," which means whether the average patrons of a typical bar believe the actions are reasonable and appropriate.
The loss of about $3.7 million in bonuses for the three executives is a very mild punishment, given their level of remuneration and the fact that Jacques, along with head of iron ore Chris Salisbury and Simone Niven, the executive responsible for corporate relations, bear responsibility for what has become a public relations disaster for the company.
The board's soft-pedalling of the cave destruction was condemned by shareholder advocacy group the Australasian Corporate Centre for Responsibility, and several institutional investors.
While Rio will no doubt hope the issue blows over with the passage of time, it's more likely that it leads to a renewed focus on environment, social and governance (ESG) issues.
Shareholders are becoming increasingly aware of the financial risks of companies that are viewed as not having leading ESG programmes and a culture of doing the right thing.
Social licence to operate, along with climate change, comes up often as the top concerns for miners, with a survey last year by consultants EY showing 44% of mining executives viewed keeping a social licence as their top concern.
MINERS TO CHANGE?
Unfortunately, the Rio incident with the Juukan caves shows that miners may still have some way to go in order to be seen to be placing ESG issues at the heart of their operations.
Rio isn't alone in this, with other leading mining companies seeming to fall short in this area, despite public commitments that it is their top priority.
Like Rio's corporate affairs boss Niven, other miners have executives listed as having responsibility for ESG issues, such as outgoing BHP BHP.AX external affairs chief Geoff Healy, Tim Langmead at Fortescue Metals Group FMG.AX, Anik Michaud at Anglo American AAL.L and Luiz Osorio at Vale.
Glencore GLEN.L is unusual among major miners in not having an executive with ESG responsibilities listed on its website.
But merely having an executive named doesn't mean these people are among the most important decision makers in the companies they work for.
All the executives' names above have additional responsibilities and none of them have a public profile worth speaking about.
In effect, they are largely invisible and take little or no public part in the debate over ESG issues.
This hardly speaks to mining companies that appear to view ESG issues as front and centre of their existence.
For companies to be taken seriously, it would likely take the appointment of senior executives, with real power over the decision-making process, to become involved in placing ESG at the heart of each company's mission.
If Rio had somebody like this, somebody could have stopped the blasting even if the CEO wanted it to proceed, somebody who understood that the negative optics of blowing up the caves considerably outweighed the potential profits, then it may have avoided the current mess.
However, it's likely that ongoing shareholder demands for increased ESG accountability, coupled with activism by interest groups, will force miners down the path of making ESG more than just the current statements of principle.
(Editing by Stephen Coates)
((clyde.russell@thomsonreuters.com)(+61 437 622 448)(Reuters Messaging: clyde.russell.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Like Rio's corporate affairs boss Niven, other miners have executives listed as having responsibility for ESG issues, such as outgoing BHP BHP.AX external affairs chief Geoff Healy, Tim Langmead at Fortescue Metals Group FMG.AX, Anik Michaud at Anglo American AAL.L and Luiz Osorio at Vale. By Clyde Russell LAUNCESTON, Australia, Aug 25 (Reuters) - Rio Tinto may have inadvertently triggered the law of unintended consequences with its blasting of an Aboriginal heritage site at one of its Australian iron ore mines, and the subsequent slap on the wrists for some senior executives. Rio, which overtook Brazil's Vale VALE3.SA as the world's biggest iron ore miner last year, destroyed the Juukan Gorge caves in May as part of an expansion of its Brockman 4 mine.
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Like Rio's corporate affairs boss Niven, other miners have executives listed as having responsibility for ESG issues, such as outgoing BHP BHP.AX external affairs chief Geoff Healy, Tim Langmead at Fortescue Metals Group FMG.AX, Anik Michaud at Anglo American AAL.L and Luiz Osorio at Vale. The board of Rio RIO.AX cut the bonuses of three senior executives including Chief Executive Jean-Sébastien Jacques as part of the company's review into the destruction of two historically significant caves in Western Australia state, against the wishes of the Aboriginal traditional owners. Social licence to operate, along with climate change, comes up often as the top concerns for miners, with a survey last year by consultants EY showing 44% of mining executives viewed keeping a social licence as their top concern.
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Like Rio's corporate affairs boss Niven, other miners have executives listed as having responsibility for ESG issues, such as outgoing BHP BHP.AX external affairs chief Geoff Healy, Tim Langmead at Fortescue Metals Group FMG.AX, Anik Michaud at Anglo American AAL.L and Luiz Osorio at Vale. The board of Rio RIO.AX cut the bonuses of three senior executives including Chief Executive Jean-Sébastien Jacques as part of the company's review into the destruction of two historically significant caves in Western Australia state, against the wishes of the Aboriginal traditional owners. The loss of about $3.7 million in bonuses for the three executives is a very mild punishment, given their level of remuneration and the fact that Jacques, along with head of iron ore Chris Salisbury and Simone Niven, the executive responsible for corporate relations, bear responsibility for what has become a public relations disaster for the company.
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Like Rio's corporate affairs boss Niven, other miners have executives listed as having responsibility for ESG issues, such as outgoing BHP BHP.AX external affairs chief Geoff Healy, Tim Langmead at Fortescue Metals Group FMG.AX, Anik Michaud at Anglo American AAL.L and Luiz Osorio at Vale. The board of Rio RIO.AX cut the bonuses of three senior executives including Chief Executive Jean-Sébastien Jacques as part of the company's review into the destruction of two historically significant caves in Western Australia state, against the wishes of the Aboriginal traditional owners. Unfortunately, the Rio incident with the Juukan caves shows that miners may still have some way to go in order to be seen to be placing ESG issues at the heart of their operations.
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5369.0
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2020-08-25 00:00:00 UTC
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American Airlines to Cut 40,000 Jobs Without a New Coronavirus Stimulus
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AAL
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https://www.nasdaq.com/articles/american-airlines-to-cut-40000-jobs-without-a-new-coronavirus-stimulus-2020-08-25
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American Airlines Group (NASDAQ: AAL) said on Tuesday that it expects at least 40,000 job cuts in early October, including about 19,000 involuntary furloughs, as the airline braces for falling demand and begins to adjust to life without government payroll support.
American and other airlines have been hit hard by the coronavirus pandemic, with travel demand down more than 70% year over year. But the industry has been able to avoid involuntary layoffs thanks to funding provided by the CARES Act stimulus legislation. The government provided $25 billion in payroll protection in return for the industry avoiding furloughs through Sept. 30.
Image source: American Airlines.
The deadline is approaching, and while lawmakers have discussed a fresh round of payroll support for airlines, the second stimulus bill is currently stalled in Washington.
American said new legislation would allow it to avoid furloughs, but said "we must prepare for the possibility that our nation's leadership will not be able to find a way to further support aviation professionals and the service we provide."
The airline expects to cut more than 12,500 of the 40,000 positions needed via early-retirement programs, and another 11,000 through voluntary leaves of absence. That leaves about 19,000 furloughs, including 1,600 pilots, 8,100 flight attendants, and 800 maintenance workers.
"The coming weeks and months will be some of the most difficult we have ever faced," CEO Doug Parker and president Robert Isom wrote in a letter to employees. "No matter how challenging they seem, remember this: The American Airlines team is no stranger to adversity, and in adversity, we always come through. We will come out on the other side of this crisis. Demand will return. Team members will be recalled. The world will find its new normal, and when it does, American is going to be there."
American had about 140,000 employees as of March.
The damage is hardly confined to American. Delta Air Lines (NYSE: DAL) late Monday said it will need to furlough up to 1,941 pilots in October without government aid or some sort of arrangement with union leaders on cost cuts.
United Airlines Holdings (NASDAQ: UAL) said in late July that it might have to furlough as many as 36,000 workers, while Southwest Airlines (NYSE: LUV) hopes to avoid involuntary separations after more than 25% of workers volunteered to take buyouts or extended leaves of absence.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines Group (NASDAQ: AAL) said on Tuesday that it expects at least 40,000 job cuts in early October, including about 19,000 involuntary furloughs, as the airline braces for falling demand and begins to adjust to life without government payroll support. American said new legislation would allow it to avoid furloughs, but said "we must prepare for the possibility that our nation's leadership will not be able to find a way to further support aviation professionals and the service we provide." "The coming weeks and months will be some of the most difficult we have ever faced," CEO Doug Parker and president Robert Isom wrote in a letter to employees.
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American Airlines Group (NASDAQ: AAL) said on Tuesday that it expects at least 40,000 job cuts in early October, including about 19,000 involuntary furloughs, as the airline braces for falling demand and begins to adjust to life without government payroll support. Delta Air Lines (NYSE: DAL) late Monday said it will need to furlough up to 1,941 pilots in October without government aid or some sort of arrangement with union leaders on cost cuts. The Motley Fool recommends Delta Air Lines and Southwest Airlines.
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American Airlines Group (NASDAQ: AAL) said on Tuesday that it expects at least 40,000 job cuts in early October, including about 19,000 involuntary furloughs, as the airline braces for falling demand and begins to adjust to life without government payroll support. United Airlines Holdings (NASDAQ: UAL) said in late July that it might have to furlough as many as 36,000 workers, while Southwest Airlines (NYSE: LUV) hopes to avoid involuntary separations after more than 25% of workers volunteered to take buyouts or extended leaves of absence. 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.
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American Airlines Group (NASDAQ: AAL) said on Tuesday that it expects at least 40,000 job cuts in early October, including about 19,000 involuntary furloughs, as the airline braces for falling demand and begins to adjust to life without government payroll support. American said new legislation would allow it to avoid furloughs, but said "we must prepare for the possibility that our nation's leadership will not be able to find a way to further support aviation professionals and the service we provide." United Airlines Holdings (NASDAQ: UAL) said in late July that it might have to furlough as many as 36,000 workers, while Southwest Airlines (NYSE: LUV) hopes to avoid involuntary separations after more than 25% of workers volunteered to take buyouts or extended leaves of absence.
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5370.0
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2020-08-25 00:00:00 UTC
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American Airlines says workforce will be 40,000 smaller in October without aid
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AAL
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https://www.nasdaq.com/articles/american-airlines-says-workforce-will-be-40000-smaller-in-october-without-aid-2020-08-25
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By Tracy Rucinski
CHICAGO, Aug 25 (Reuters) - American Airlines AAL.O said on Tuesday its workforce will shrink by 40,000, including 19,000 involuntary cuts, in October as the COVID-19 pandemic continues to weigh on air travel, unless the government extends aid for airline employee payrolls.
Airlines received $25 billion in U.S. government stimulus funds in March meant to cover payrolls and protect jobs through September. As the money runs out without a travel recovery in sight, airlines and unions have lobbied Washington for another $25 billion, but talks have stalled.
Including voluntary exits and leaves as well as forced reductions, American's workforce will shrink to around 100,000 in October from the 140,000 it employed in March.
"In short, American’s team will have at least 40,000 fewer people working Oct. 1 than we had when we entered this pandemic," Chief Executive Doug Parker and President Robert Isom said in a memo to employees that was reviewed by Reuters.
They said the one possibility of avoiding involuntary cuts is an extension of the payroll support program under the CARES Act.
The announcement comes in the midst of the four-day Republican National Convention, where President Donald Trump is trying to regain momentum against the backdrop of a pandemic that has killed over 175,000 Americans and produced a recession that has seen the loss of millions of jobs.
Texas-based American's planned job cuts comprise 17,500 furloughs of union workers -including 1,600 pilots and 8,100 flight attendants - and 1,500 management positions.
Based on current demand levels, American now plans to fly less than 50% of its normal schedule in the fourth quarter, with international flying reduced to only a quarter of 2019 levels, Parker and Isom said in the memo.
Among other large U.S. carriers, United Airlines UAL.O has sent notices of potential furloughs to 36,000 employees, while Southwest Airlines LUV.N has said it hopes to avoid involuntary cuts this year.
Delta Air Lines DAL.N announced on Monday furloughs of nearly 2,000 pilots but has said the numbers could be reduced if they agree to a cut in minimum pay.
(Reporting by Tracy Rucinski; Editing by Steve Orlofsky)
((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.
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By Tracy Rucinski CHICAGO, Aug 25 (Reuters) - American Airlines AAL.O said on Tuesday its workforce will shrink by 40,000, including 19,000 involuntary cuts, in October as the COVID-19 pandemic continues to weigh on air travel, unless the government extends aid for airline employee payrolls. "In short, American’s team will have at least 40,000 fewer people working Oct. 1 than we had when we entered this pandemic," Chief Executive Doug Parker and President Robert Isom said in a memo to employees that was reviewed by Reuters. The announcement comes in the midst of the four-day Republican National Convention, where President Donald Trump is trying to regain momentum against the backdrop of a pandemic that has killed over 175,000 Americans and produced a recession that has seen the loss of millions of jobs.
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By Tracy Rucinski CHICAGO, Aug 25 (Reuters) - American Airlines AAL.O said on Tuesday its workforce will shrink by 40,000, including 19,000 involuntary cuts, in October as the COVID-19 pandemic continues to weigh on air travel, unless the government extends aid for airline employee payrolls. Texas-based American's planned job cuts comprise 17,500 furloughs of union workers -including 1,600 pilots and 8,100 flight attendants - and 1,500 management positions. Based on current demand levels, American now plans to fly less than 50% of its normal schedule in the fourth quarter, with international flying reduced to only a quarter of 2019 levels, Parker and Isom said in the memo.
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By Tracy Rucinski CHICAGO, Aug 25 (Reuters) - American Airlines AAL.O said on Tuesday its workforce will shrink by 40,000, including 19,000 involuntary cuts, in October as the COVID-19 pandemic continues to weigh on air travel, unless the government extends aid for airline employee payrolls. Based on current demand levels, American now plans to fly less than 50% of its normal schedule in the fourth quarter, with international flying reduced to only a quarter of 2019 levels, Parker and Isom said in the memo. Among other large U.S. carriers, United Airlines UAL.O has sent notices of potential furloughs to 36,000 employees, while Southwest Airlines LUV.N has said it hopes to avoid involuntary cuts this year.
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By Tracy Rucinski CHICAGO, Aug 25 (Reuters) - American Airlines AAL.O said on Tuesday its workforce will shrink by 40,000, including 19,000 involuntary cuts, in October as the COVID-19 pandemic continues to weigh on air travel, unless the government extends aid for airline employee payrolls. As the money runs out without a travel recovery in sight, airlines and unions have lobbied Washington for another $25 billion, but talks have stalled. Among other large U.S. carriers, United Airlines UAL.O has sent notices of potential furloughs to 36,000 employees, while Southwest Airlines LUV.N has said it hopes to avoid involuntary cuts this year.
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5371.0
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2020-08-24 00:00:00 UTC
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BUZZ-U.S. STOCKS ON THE MOVE-Catalent Inc, Zoom Video Communications, Marathon Oil Corp
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AAL
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https://www.nasdaq.com/articles/buzz-u.s.-stocks-on-the-move-catalent-inc-zoom-video-communications-marathon-oil-corp-2020
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nan
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Eikon search string for individual stock moves: STXBZ
The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi
The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh
The S&P 500 and Nasdaq scaled new highs on Monday as a gain in Apple shares and U.S. approval for the emergency use of blood plasma in COVID-19 patients lifted treatment hopes and spurred bets of a quicker economic recovery. .N
At 11:31 a.m. ET, the Dow Jones Industrial Average .DJI was up 1.04% at 28,220.79. The S&P 500 .SPX was up 0.69% at 3,420.69 and the Nasdaq Composite .IXIC was up 0.27% at 11,342.441. The top three S&P 500 .PG.INX percentage gainers: ** Westrock Company , up 8.7% ** Norwegian Cruise Line-Holdings , up 8.6% ** American Airlines Group Inc , up 8.5% The top three S&P 500 .PL.INX percentage losers: ** American Tower Corp , down 2.7% ** SBA Communications Corp , down 2.7% ** Digital Realty Trust Inc , down 2.7% The top three NYSE .PG.N percentage gainers: ** Ibio Inc , up 31.6% ** Renesola Ltd , up 18.2% ** Nabors Industries Ltd , up 16% The top three NYSE .PL.N percentage losers: ** Mogu Inc , down 19.1% ** Nanoviricides Inc , down 15% ** Retractable Technologies Inc , down 12% The top three Nasdaq .PG.O percentage gainers: ** Cancer Genetics Inc , up 186.6% ** American Outdoor Brands Inc , up 59.2% ** Sonnet Biotherapeutics Holdings Inc , up 43.5% The top three Nasdaq .PL.O percentage losers: ** Odonate Therapeutics , down 32.5% ** Growgeneration Corp , down 20.6% ** Sorrento Therapeutics Inc , down 20.3% ** Trevena Inc TRVN.O: up 1.2%
BUZZ-Jumps as co begins COVID-19 drug candidate study ** Facebook Inc FB.O: up 1.3%
BUZZ-Jefferies says Instagram Reels could be next big story ** Apple Inc AAPL.O: up 1.2%
BUZZ-Set to open above $500 for first time ahead of stock split ** Brainsway Ltd BWAY.O: up 13.1%
BUZZ-Rises after FDA gives nod to device that helps quit smoking ** Gores Metropoulos Inc GMHIU.O: up 4.3%
BUZZ-Rises on SPAC deal to take Peter Thiel-backed Luminar public ** Proteostasis Therapeutics PTI.O: up 7.8%
BUZZ-Rises on merger with Yumanity Therapeutics ** Onconova Therapeutics Inc ONTX.O: down 70.8%
BUZZ-Onconova falls as lead blood disorder drug candidate fails late-stage study ** XBiotech Inc XBIT.O: up 11.3%
BUZZ-Jumps as U.S. FDA move clears way for COVID-19 plasma test ** Norwegian Cruise Line NCLH.N: up 8.6% ** Hilton Worldwide HLT.N: up 1.7% ** American Airlines Group Inc AAL.O: up 8.5%
BUZZ-Travel stocks jump as COVID-19 treatment efforts spur risk-on mood ** Alibaba Group Holding Ltd BABA.N: up 2.7%
BUZZ-U.S.-listed shares set to open at all-time peak ** Rocket Companies Inc RKT.N: up 10.8%
BUZZ-Rocket soaring ** Catalent Inc CTLT.N: up 2.1%
BUZZ-Jumps on deal to make drug substance for AstraZeneca's COVID-19 vaccine candidate ** Zoom Video Communications ZM.O: down 4.1%
BUZZ-Falls as video conferencing service faces partial outage USN ** Marathon Oil Corp MRO.N: up 4.8% ** Exxon Mobil Corp XOM.N: up 3.5%
BUZZ-Oil & gas: Up on storm-hit U.S. output, COVID-19 treatment hopes ** Tricida Inc TCDA.O: down 17.7%
BUZZ-Falls after FDA declines to approve lead kidney disease drug ** Li Auto Inc LI.O: up 8.2%
BUZZ-China's Li Auto accelerates after Goldman initiates with "Conviction Buy"
The 11 major S&P 500 sectors:
Communication Services
.SPLRCL
up 0.77%
Consumer Discretionary
.SPLRCD
up 1.02%
Consumer Staples
.SPLRCS
up 0.62%
Energy
.SPNY
up 3.17%
Financial
.SPSY
up 1.67%
Health
.SPXHC
down 0.64%
Industrial
.SPLRCI
up 1.41%
Information Technology
.SPLRCT
up 0.59%
Materials
.SPLRCM
up 1.58%
Real Estate
.SPLRCR
down 1.13%
Utilities
.SPLRCU
up 0.17%
(Compiled by Shivani Kumaresan in Bengaluru)
((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.
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The top three S&P 500 .PG.INX percentage gainers: ** Westrock Company , up 8.7% ** Norwegian Cruise Line-Holdings , up 8.6% ** American Airlines Group Inc , up 8.5% The top three S&P 500 .PL.INX percentage losers: ** American Tower Corp , down 2.7% ** SBA Communications Corp , down 2.7% ** Digital Realty Trust Inc , down 2.7% The top three NYSE .PG.N percentage gainers: ** Ibio Inc , up 31.6% ** Renesola Ltd , up 18.2% ** Nabors Industries Ltd , up 16% The top three NYSE .PL.N percentage losers: ** Mogu Inc , down 19.1% ** Nanoviricides Inc , down 15% ** Retractable Technologies Inc , down 12% The top three Nasdaq .PG.O percentage gainers: ** Cancer Genetics Inc , up 186.6% ** American Outdoor Brands Inc , up 59.2% ** Sonnet Biotherapeutics Holdings Inc , up 43.5% The top three Nasdaq .PL.O percentage losers: ** Odonate Therapeutics , down 32.5% ** Growgeneration Corp , down 20.6% ** Sorrento Therapeutics Inc , down 20.3% ** Trevena Inc TRVN.O: up 1.2% BUZZ-Jumps as co begins COVID-19 drug candidate study ** Facebook Inc FB.O: up 1.3% BUZZ-Jefferies says Instagram Reels could be next big story ** Apple Inc AAPL.O: up 1.2% BUZZ-Set to open above $500 for first time ahead of stock split ** Brainsway Ltd BWAY.O: up 13.1% BUZZ-Rises after FDA gives nod to device that helps quit smoking ** Gores Metropoulos Inc GMHIU.O: up 4.3% BUZZ-Rises on SPAC deal to take Peter Thiel-backed Luminar public ** Proteostasis Therapeutics PTI.O: up 7.8% BUZZ-Rises on merger with Yumanity Therapeutics ** Onconova Therapeutics Inc ONTX.O: down 70.8% BUZZ-Onconova falls as lead blood disorder drug candidate fails late-stage study ** XBiotech Inc XBIT.O: up 11.3% BUZZ-Jumps as U.S. FDA move clears way for COVID-19 plasma test ** Norwegian Cruise Line NCLH.N: up 8.6% ** Hilton Worldwide HLT.N: up 1.7% ** American Airlines Group Inc AAL.O: up 8.5% BUZZ-Travel stocks jump as COVID-19 treatment efforts spur risk-on mood ** Alibaba Group Holding Ltd BABA.N: up 2.7% BUZZ-U.S.-listed shares set to open at all-time peak ** Rocket Companies Inc RKT.N: up 10.8% BUZZ-Rocket soaring ** Catalent Inc CTLT.N: up 2.1% BUZZ-Jumps on deal to make drug substance for AstraZeneca's COVID-19 vaccine candidate ** Zoom Video Communications ZM.O: down 4.1% BUZZ-Falls as video conferencing service faces partial outage USN ** Marathon Oil Corp MRO.N: up 4.8% ** Exxon Mobil Corp XOM.N: up 3.5% BUZZ-Oil & gas: Up on storm-hit U.S. output, COVID-19 treatment hopes ** Tricida Inc TCDA.O: down 17.7% BUZZ-Falls after FDA declines to approve lead kidney disease drug ** Li Auto Inc LI.O: up 8.2% BUZZ-China's Li Auto accelerates after Goldman initiates with "Conviction Buy" The 11 major S&P 500 sectors: Communication Services Eikon search string for individual stock moves: STXBZ The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh The S&P 500 and Nasdaq scaled new highs on Monday as a gain in Apple shares and U.S. approval for the emergency use of blood plasma in COVID-19 patients lifted treatment hopes and spurred bets of a quicker economic recovery. up 0.17% (Compiled by Shivani Kumaresan in Bengaluru) ((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.
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The top three S&P 500 .PG.INX percentage gainers: ** Westrock Company , up 8.7% ** Norwegian Cruise Line-Holdings , up 8.6% ** American Airlines Group Inc , up 8.5% The top three S&P 500 .PL.INX percentage losers: ** American Tower Corp , down 2.7% ** SBA Communications Corp , down 2.7% ** Digital Realty Trust Inc , down 2.7% The top three NYSE .PG.N percentage gainers: ** Ibio Inc , up 31.6% ** Renesola Ltd , up 18.2% ** Nabors Industries Ltd , up 16% The top three NYSE .PL.N percentage losers: ** Mogu Inc , down 19.1% ** Nanoviricides Inc , down 15% ** Retractable Technologies Inc , down 12% The top three Nasdaq .PG.O percentage gainers: ** Cancer Genetics Inc , up 186.6% ** American Outdoor Brands Inc , up 59.2% ** Sonnet Biotherapeutics Holdings Inc , up 43.5% The top three Nasdaq .PL.O percentage losers: ** Odonate Therapeutics , down 32.5% ** Growgeneration Corp , down 20.6% ** Sorrento Therapeutics Inc , down 20.3% ** Trevena Inc TRVN.O: up 1.2% BUZZ-Jumps as co begins COVID-19 drug candidate study ** Facebook Inc FB.O: up 1.3% BUZZ-Jefferies says Instagram Reels could be next big story ** Apple Inc AAPL.O: up 1.2% BUZZ-Set to open above $500 for first time ahead of stock split ** Brainsway Ltd BWAY.O: up 13.1% BUZZ-Rises after FDA gives nod to device that helps quit smoking ** Gores Metropoulos Inc GMHIU.O: up 4.3% BUZZ-Rises on SPAC deal to take Peter Thiel-backed Luminar public ** Proteostasis Therapeutics PTI.O: up 7.8% BUZZ-Rises on merger with Yumanity Therapeutics ** Onconova Therapeutics Inc ONTX.O: down 70.8% BUZZ-Onconova falls as lead blood disorder drug candidate fails late-stage study ** XBiotech Inc XBIT.O: up 11.3% BUZZ-Jumps as U.S. FDA move clears way for COVID-19 plasma test ** Norwegian Cruise Line NCLH.N: up 8.6% ** Hilton Worldwide HLT.N: up 1.7% ** American Airlines Group Inc AAL.O: up 8.5% BUZZ-Travel stocks jump as COVID-19 treatment efforts spur risk-on mood ** Alibaba Group Holding Ltd BABA.N: up 2.7% BUZZ-U.S.-listed shares set to open at all-time peak ** Rocket Companies Inc RKT.N: up 10.8% BUZZ-Rocket soaring ** Catalent Inc CTLT.N: up 2.1% BUZZ-Jumps on deal to make drug substance for AstraZeneca's COVID-19 vaccine candidate ** Zoom Video Communications ZM.O: down 4.1% BUZZ-Falls as video conferencing service faces partial outage USN ** Marathon Oil Corp MRO.N: up 4.8% ** Exxon Mobil Corp XOM.N: up 3.5% BUZZ-Oil & gas: Up on storm-hit U.S. output, COVID-19 treatment hopes ** Tricida Inc TCDA.O: down 17.7% BUZZ-Falls after FDA declines to approve lead kidney disease drug ** Li Auto Inc LI.O: up 8.2% BUZZ-China's Li Auto accelerates after Goldman initiates with "Conviction Buy" The 11 major S&P 500 sectors: Communication Services Eikon search string for individual stock moves: STXBZ The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh The S&P 500 and Nasdaq scaled new highs on Monday as a gain in Apple shares and U.S. approval for the emergency use of blood plasma in COVID-19 patients lifted treatment hopes and spurred bets of a quicker economic recovery. up 0.17% (Compiled by Shivani Kumaresan in Bengaluru) ((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.
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The top three S&P 500 .PG.INX percentage gainers: ** Westrock Company , up 8.7% ** Norwegian Cruise Line-Holdings , up 8.6% ** American Airlines Group Inc , up 8.5% The top three S&P 500 .PL.INX percentage losers: ** American Tower Corp , down 2.7% ** SBA Communications Corp , down 2.7% ** Digital Realty Trust Inc , down 2.7% The top three NYSE .PG.N percentage gainers: ** Ibio Inc , up 31.6% ** Renesola Ltd , up 18.2% ** Nabors Industries Ltd , up 16% The top three NYSE .PL.N percentage losers: ** Mogu Inc , down 19.1% ** Nanoviricides Inc , down 15% ** Retractable Technologies Inc , down 12% The top three Nasdaq .PG.O percentage gainers: ** Cancer Genetics Inc , up 186.6% ** American Outdoor Brands Inc , up 59.2% ** Sonnet Biotherapeutics Holdings Inc , up 43.5% The top three Nasdaq .PL.O percentage losers: ** Odonate Therapeutics , down 32.5% ** Growgeneration Corp , down 20.6% ** Sorrento Therapeutics Inc , down 20.3% ** Trevena Inc TRVN.O: up 1.2% BUZZ-Jumps as co begins COVID-19 drug candidate study ** Facebook Inc FB.O: up 1.3% BUZZ-Jefferies says Instagram Reels could be next big story ** Apple Inc AAPL.O: up 1.2% BUZZ-Set to open above $500 for first time ahead of stock split ** Brainsway Ltd BWAY.O: up 13.1% BUZZ-Rises after FDA gives nod to device that helps quit smoking ** Gores Metropoulos Inc GMHIU.O: up 4.3% BUZZ-Rises on SPAC deal to take Peter Thiel-backed Luminar public ** Proteostasis Therapeutics PTI.O: up 7.8% BUZZ-Rises on merger with Yumanity Therapeutics ** Onconova Therapeutics Inc ONTX.O: down 70.8% BUZZ-Onconova falls as lead blood disorder drug candidate fails late-stage study ** XBiotech Inc XBIT.O: up 11.3% BUZZ-Jumps as U.S. FDA move clears way for COVID-19 plasma test ** Norwegian Cruise Line NCLH.N: up 8.6% ** Hilton Worldwide HLT.N: up 1.7% ** American Airlines Group Inc AAL.O: up 8.5% BUZZ-Travel stocks jump as COVID-19 treatment efforts spur risk-on mood ** Alibaba Group Holding Ltd BABA.N: up 2.7% BUZZ-U.S.-listed shares set to open at all-time peak ** Rocket Companies Inc RKT.N: up 10.8% BUZZ-Rocket soaring ** Catalent Inc CTLT.N: up 2.1% BUZZ-Jumps on deal to make drug substance for AstraZeneca's COVID-19 vaccine candidate ** Zoom Video Communications ZM.O: down 4.1% BUZZ-Falls as video conferencing service faces partial outage USN ** Marathon Oil Corp MRO.N: up 4.8% ** Exxon Mobil Corp XOM.N: up 3.5% BUZZ-Oil & gas: Up on storm-hit U.S. output, COVID-19 treatment hopes ** Tricida Inc TCDA.O: down 17.7% BUZZ-Falls after FDA declines to approve lead kidney disease drug ** Li Auto Inc LI.O: up 8.2% BUZZ-China's Li Auto accelerates after Goldman initiates with "Conviction Buy" The 11 major S&P 500 sectors: Communication Services up 0.77% Consumer Discretionary up 1.02% Consumer Staples
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The top three S&P 500 .PG.INX percentage gainers: ** Westrock Company , up 8.7% ** Norwegian Cruise Line-Holdings , up 8.6% ** American Airlines Group Inc , up 8.5% The top three S&P 500 .PL.INX percentage losers: ** American Tower Corp , down 2.7% ** SBA Communications Corp , down 2.7% ** Digital Realty Trust Inc , down 2.7% The top three NYSE .PG.N percentage gainers: ** Ibio Inc , up 31.6% ** Renesola Ltd , up 18.2% ** Nabors Industries Ltd , up 16% The top three NYSE .PL.N percentage losers: ** Mogu Inc , down 19.1% ** Nanoviricides Inc , down 15% ** Retractable Technologies Inc , down 12% The top three Nasdaq .PG.O percentage gainers: ** Cancer Genetics Inc , up 186.6% ** American Outdoor Brands Inc , up 59.2% ** Sonnet Biotherapeutics Holdings Inc , up 43.5% The top three Nasdaq .PL.O percentage losers: ** Odonate Therapeutics , down 32.5% ** Growgeneration Corp , down 20.6% ** Sorrento Therapeutics Inc , down 20.3% ** Trevena Inc TRVN.O: up 1.2% BUZZ-Jumps as co begins COVID-19 drug candidate study ** Facebook Inc FB.O: up 1.3% BUZZ-Jefferies says Instagram Reels could be next big story ** Apple Inc AAPL.O: up 1.2% BUZZ-Set to open above $500 for first time ahead of stock split ** Brainsway Ltd BWAY.O: up 13.1% BUZZ-Rises after FDA gives nod to device that helps quit smoking ** Gores Metropoulos Inc GMHIU.O: up 4.3% BUZZ-Rises on SPAC deal to take Peter Thiel-backed Luminar public ** Proteostasis Therapeutics PTI.O: up 7.8% BUZZ-Rises on merger with Yumanity Therapeutics ** Onconova Therapeutics Inc ONTX.O: down 70.8% BUZZ-Onconova falls as lead blood disorder drug candidate fails late-stage study ** XBiotech Inc XBIT.O: up 11.3% BUZZ-Jumps as U.S. FDA move clears way for COVID-19 plasma test ** Norwegian Cruise Line NCLH.N: up 8.6% ** Hilton Worldwide HLT.N: up 1.7% ** American Airlines Group Inc AAL.O: up 8.5% BUZZ-Travel stocks jump as COVID-19 treatment efforts spur risk-on mood ** Alibaba Group Holding Ltd BABA.N: up 2.7% BUZZ-U.S.-listed shares set to open at all-time peak ** Rocket Companies Inc RKT.N: up 10.8% BUZZ-Rocket soaring ** Catalent Inc CTLT.N: up 2.1% BUZZ-Jumps on deal to make drug substance for AstraZeneca's COVID-19 vaccine candidate ** Zoom Video Communications ZM.O: down 4.1% BUZZ-Falls as video conferencing service faces partial outage USN ** Marathon Oil Corp MRO.N: up 4.8% ** Exxon Mobil Corp XOM.N: up 3.5% BUZZ-Oil & gas: Up on storm-hit U.S. output, COVID-19 treatment hopes ** Tricida Inc TCDA.O: down 17.7% BUZZ-Falls after FDA declines to approve lead kidney disease drug ** Li Auto Inc LI.O: up 8.2% BUZZ-China's Li Auto accelerates after Goldman initiates with "Conviction Buy" The 11 major S&P 500 sectors: Communication Services Eikon search string for individual stock moves: STXBZ The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh The S&P 500 and Nasdaq scaled new highs on Monday as a gain in Apple shares and U.S. approval for the emergency use of blood plasma in COVID-19 patients lifted treatment hopes and spurred bets of a quicker economic recovery. ET, the Dow Jones Industrial Average .DJI was up 1.04% at 28,220.79.
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5372.0
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2020-08-24 00:00:00 UTC
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After Hours Most Active for Aug 24, 2020 : PFE, ENLC, NIO, ACWI, UBER, BAC, AAL, INTC, CTVA, SABR, AAPL, QCOM
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AAL
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https://www.nasdaq.com/articles/after-hours-most-active-for-aug-24-2020-%3A-pfe-enlc-nio-acwi-uber-bac-aal-intc-ctva-sabr
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The NASDAQ 100 After Hours Indicator is up 21.63 to 11,743.44. The total After hours volume is currently 71,930,950 shares traded.
The following are the most active stocks for the after hours session:
Pfizer, Inc. (PFE) is -0.49 at $38.35, with 3,005,014 shares traded. PFE's current last sale is 91.31% of the target price of $42.
EnLink Midstream, LLC (ENLC) is unchanged at $2.98, with 2,967,465 shares traded. ENLC's current last sale is 91.69% of the target price of $3.25.
NIO Inc. (NIO) is +0.03 at $15.00, with 2,681,779 shares traded., following a 52-week high recorded in today's regular session.
iShares MSCI ACWI Index Fund (ACWI) is unchanged at $81.48, with 2,555,000 shares traded., following a 52-week high recorded in today's regular session.
Uber Technologies, Inc. (UBER) is +0.01 at $31.05, with 1,962,489 shares traded. Over the last four weeks they have had 6 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2020. The consensus EPS forecast is $-0.61. As reported by Zacks, the current mean recommendation for UBER is in the "buy range".
Bank of America Corporation (BAC) is +0.05 at $25.74, with 1,836,543 shares traded. BAC's current last sale is 95.33% of the target price of $27.
American Airlines Group, Inc. (AAL) is +0.27 at $13.71, with 1,738,418 shares traded. AAL's current last sale is 114.25% of the target price of $12.
Intel Corporation (INTC) is -0.01 at $49.13, with 1,723,396 shares traded. INTC's current last sale is 84.71% of the target price of $58.
Corteva, Inc. (CTVA) is +0.26 at $28.80, with 1,719,935 shares traded. CTVA's current last sale is 96% of the target price of $30.
Sabre Corporation (SABR) is +0.01 at $7.06, with 1,708,614 shares traded. SABR's current last sale is 78.44% of the target price of $9.
Apple Inc. (AAPL) is +2.67 at $506.10, with 1,547,093 shares traded. Over the last four weeks they have had 5 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2020. The consensus EPS forecast is $2.73. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
QUALCOMM Incorporated (QCOM) is +0.09 at $116.00, with 1,403,126 shares traded. As reported by Zacks, the current mean recommendation for QCOM is in the "buy range".
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines Group, Inc. (AAL) is +0.27 at $13.71, with 1,738,418 shares traded. AAL's current last sale is 114.25% of the target price of $12. EnLink Midstream, LLC (ENLC) is unchanged at $2.98, with 2,967,465 shares traded.
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American Airlines Group, Inc. (AAL) is +0.27 at $13.71, with 1,738,418 shares traded. AAL's current last sale is 114.25% of the target price of $12. NIO Inc. (NIO) is +0.03 at $15.00, with 2,681,779 shares traded., following a 52-week high recorded in today's regular session.
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American Airlines Group, Inc. (AAL) is +0.27 at $13.71, with 1,738,418 shares traded. AAL's current last sale is 114.25% of the target price of $12. The total After hours volume is currently 71,930,950 shares traded.
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AAL's current last sale is 114.25% of the target price of $12. American Airlines Group, Inc. (AAL) is +0.27 at $13.71, with 1,738,418 shares traded. The NASDAQ 100 After Hours Indicator is up 21.63 to 11,743.44.
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5373.0
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2020-08-24 00:00:00 UTC
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S&P 500 Up 34 Points on Coronavirus Treatment Hopes; Airline, Cruise, Retail Stocks Surge
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AAL
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https://www.nasdaq.com/articles/sp-500-up-34-points-on-coronavirus-treatment-hopes-airline-cruise-retail-stocks-surge-2020
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The S&P 500 Index (SNPINDEX: ^GSPC) gained 34 points, a solid 1% move higher, on August 24, following news that a potential coronavirus vaccine could get an authorization from the U.S. Food and Drug Administration (FDA) as soon as October. Reports suggest that a vaccine developed by Oxford University and AstraZeneca (NYSE: AZN) could be awarded an emergency use authorization (EUA), even as it has only just begun phase 3 clinical trials.
As a result, investors piled into shares of airline, cruise line, and retail stocks, with American Airlines (NASDAQ: AAL), United Airlines (NASDAQ: UAL), and Carnival (NYSE: CCL) up 10%, and retailers Kohl's Corp (NYSE: KSS), Gap Inc (NYSE: GPS), and V.F. Corp up 7% or more.
Image source: Getty Images.
Investors didn't stop at these names, either. More than 400 of the 505 stocks that make up the S&P 500 index gained in value on the day.
Trump administration pushing for a vaccine
There's tremendous political will to bring a safe, effective vaccine to market as quickly as possible. One of the leading candidates is from AstraZeneca, which has shown positive data in its studies so far, and the phase 3 trial is just under way. The company says it has a subset of data from approximately 10,000 people in the U.K that is favorable but is still working to enroll 30,000 people globally for the trial.
If the data continues to hold up as being both safe and effective, the FDA is likely to face immense pressure to issue an emergency use authorization as quickly as feasible. Over 800,000 people have died worldwide from COVID-19, with more than 176,000 deaths in the United States.
Investors pile into beaten-down sectors, betting big on a recovery
While many stocks -- and the big indexes -- have returned to record levels, the sectors that have felt the biggest impact of the coronavirus pandemic continue to lag. Hopes of a vaccine coming to market within a couple of months have investors piling in today.
Investors are buying up every stock that could benefit from a recovery in leisure and business travel. Commercial airline movers today include Delta Air Lines (NYSE: DAL) up 9.3%, Southwest Airlines (NYSE: LUV) up 6.4%, aerospace giant Boeing (NYSE: BA) up 6.4%, and General Electric (NYSE: GE), which makes jet engines, up 5.1%. Norwegian Cruise Lines (NYSE: NCLH) joined its peers higher, up 7.6%.
Investors also bought retail stocks that have struggled heavily, including mall owner Simon Property Group, up 6.2%, and luxury retailer Tapestry and athletic apparel maker Under Armour, Inc., both up 5%.
These are some of the worst-performing stock sectors so far this year. Here's a look at how the subcategories these stocks fall into have performed as a group:
^SPXAIR data by YCharts
Investors are looking for any edge they can find, and in this case it's piling into the sectors that have struggled the most and continue to lag in the market. Here is how these same categories did today:
^SPXAIR data by YCharts
Upside, but still risks
As the coronavirus pandemic continues to create enormous health risks and weigh on the global economy, investors are hopeful that a medical breakthrough is coming soon. Yet, while being hopeful is good, attempting to front run a vaccine this early comes with enormous risks.
The airline and cruise industries still face enormous headwinds; airline traffic remains 70% below 2019 levels, and cruise ships won't be leaving U.S. ports anytime soon. These companies will continue burning through their cash reserves; most have raised sufficient cash to ride out a protracted downturn, but the end result will be enormous debt burdens they will have to deal with once the pandemic has been eradicated.
For retail, the case is far better, but there are still struggles. Most retailers have been able to reopen closed stores, and retail traffic has improved significantly. However, the expiration of the $600 per week in extra unemployment funds, along with consistently high weekly new unemployment filings could bring the retail recovery to a halt.
The possibility of a vaccine that can be administered to the most at-risk populations getting even a limited approval is amazing. However, it's still unclear whether the AstraZeneca candidate -- or another one entirely -- will get an EUA that quickly, or what the implications are for that EUA leading to wider immunizations that help us transition out of the pandemic and into a full recovery.
The struggling industries investors bought hand-over-fist today absolutely need a full recovery to kick in -- and sooner rather than later.
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 August 1, 2020
Jason Hall owns shares of Simon Property Group, Southwest Airlines, and Under Armour (A Shares). The Motley Fool owns shares of and recommends Tapestry and Under Armour (A Shares). The Motley Fool recommends Carnival, 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.
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As a result, investors piled into shares of airline, cruise line, and retail stocks, with American Airlines (NASDAQ: AAL), United Airlines (NASDAQ: UAL), and Carnival (NYSE: CCL) up 10%, and retailers Kohl's Corp (NYSE: KSS), Gap Inc (NYSE: GPS), and V.F. The S&P 500 Index (SNPINDEX: ^GSPC) gained 34 points, a solid 1% move higher, on August 24, following news that a potential coronavirus vaccine could get an authorization from the U.S. Food and Drug Administration (FDA) as soon as October. Reports suggest that a vaccine developed by Oxford University and AstraZeneca (NYSE: AZN) could be awarded an emergency use authorization (EUA), even as it has only just begun phase 3 clinical trials.
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As a result, investors piled into shares of airline, cruise line, and retail stocks, with American Airlines (NASDAQ: AAL), United Airlines (NASDAQ: UAL), and Carnival (NYSE: CCL) up 10%, and retailers Kohl's Corp (NYSE: KSS), Gap Inc (NYSE: GPS), and V.F. See the 10 stocks *Stock Advisor returns as of August 1, 2020 Jason Hall owns shares of Simon Property Group, Southwest Airlines, and Under Armour (A Shares). The Motley Fool recommends Carnival, Delta Air Lines, and Southwest Airlines.
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As a result, investors piled into shares of airline, cruise line, and retail stocks, with American Airlines (NASDAQ: AAL), United Airlines (NASDAQ: UAL), and Carnival (NYSE: CCL) up 10%, and retailers Kohl's Corp (NYSE: KSS), Gap Inc (NYSE: GPS), and V.F. Commercial airline movers today include Delta Air Lines (NYSE: DAL) up 9.3%, Southwest Airlines (NYSE: LUV) up 6.4%, aerospace giant Boeing (NYSE: BA) up 6.4%, and General Electric (NYSE: GE), which makes jet engines, up 5.1%. See the 10 stocks *Stock Advisor returns as of August 1, 2020 Jason Hall owns shares of Simon Property Group, Southwest Airlines, and Under Armour (A Shares).
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As a result, investors piled into shares of airline, cruise line, and retail stocks, with American Airlines (NASDAQ: AAL), United Airlines (NASDAQ: UAL), and Carnival (NYSE: CCL) up 10%, and retailers Kohl's Corp (NYSE: KSS), Gap Inc (NYSE: GPS), and V.F. Here's a look at how the subcategories these stocks fall into have performed as a group: ^SPXAIR data by YCharts Investors are looking for any edge they can find, and in this case it's piling into the sectors that have struggled the most and continue to lag in 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!
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5374.0
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2020-08-24 00:00:00 UTC
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Stock Markets Jump on COVID-19 Hopes; Travel Stocks Soar
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AAL
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https://www.nasdaq.com/articles/stock-markets-jump-on-covid-19-hopes-travel-stocks-soar-2020-08-24
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The stock market began the new week on a sharply positive note. Market participants appeared to be excited about the U.S. Food and Drug Administration's decision to issue an emergency authorization for the use of antibody-containing plasma for treating COVID-19 patients. That gave investors new optimism that the global economy will be able to move forward without any further interference from the coronavirus pandemic. Gains were largest for the Dow Jones Industrial Average (DJINDICES: ^DJI), but the S&P 500 (SNPINDEX: ^GSPC) and Nasdaq Composite were able to advance to new record highs.
Today's stock market
INDEX
PERCENTAGE CHANGE
POINT CHANGE
Dow
+1.35%
+378
S&P 500
+1.00%
+34
Nasdaq Composite
+0.60%
+68
Data source: Yahoo! Finance.
If there's one industry that's gotten hit the hardest by the pandemic, it's travel. It's therefore not surprising to see the travel industry rally sharply on any news that suggests an end might be in sight for the worst of the coronavirus crisis. The big question that remains, though, is whether travel stocks are getting ahead of themselves.
A big bounce across the board
Just about every segment of the travel industry did well on Monday. The impact of a full recovery would be different for various subsectors, roughly in proportion to the amount they've gotten hit.
Cruise ship operators saw substantial gains, as they've arguably taken the worst of the crisis. Norwegian Cruise Line Holdings (NYSE: NCLH) climbed more than 10%, while Carnival (NYSE: CCL) came in with a 7% gain. Royal Caribbean Cruises (NYSE: RCL) finished the day up almost 5%.
Image source: Getty Images.
It's not immediately apparent whether the news of a potential treatment for COVID-19 would actually help the cruise lines immediately. Cruise operators haven't actually been suffering a loss of confidence among customers, who've actually been impatient to get back to sea. Instead, satisfying regulators about the safety of cruises going forward has been the biggest sticking point. No-sail orders have continued beyond their original durations, and it's still not clear whether the companies operating cruises have come up with coronavirus mitigation plans that will satisfy the Centers for Disease Control and Prevention and similar regulators overseas.
Airlines fly higher
Elsewhere, airline stocks also performed well. American Airlines Group (NASDAQ: AAL) and United Airlines Holdings (NASDAQ: UAL) were the best performers, climbing 11% and 10%, respectively. Delta Air Lines (NYSE: DAL) gained 9% on the day, while Southwest Airlines (NYSE: LUV) advanced more than 6%.
In general, U.S. carriers with extensive international schedules fared better than carriers that fly solely within the U.S., in large part because the continuing impact of COVID-19 on international travel depends much more on finding a viable treatment. With travel between the U.S. and most other countries being limited, it'll take a proven vaccine or treatment to convince many nations to open their doors to American travelers.
Also, unlike cruise ships, airplanes are flying people even under the threat of COVID-19. Hope for a viable treatment could make more travelers willing to fly, further boosting the prospects for carriers. In that sense, today's news could be more helpful for airline stocks than for cruise company shareholders.
Nevertheless, we're still a long way from having any candidate vaccine or treatment make its way fully through the regulatory process. Investors are being optimistic here, but a reversal is possible if things don't go as well as hoped.
10 stocks we like better than Norwegian Cruise Line 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 Norwegian Cruise Line 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 August 1, 2020
Dan Caplinger has no position in any of the stocks mentioned. The Motley Fool recommends Carnival, 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.
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American Airlines Group (NASDAQ: AAL) and United Airlines Holdings (NASDAQ: UAL) were the best performers, climbing 11% and 10%, respectively. Market participants appeared to be excited about the U.S. Food and Drug Administration's decision to issue an emergency authorization for the use of antibody-containing plasma for treating COVID-19 patients. Gains were largest for the Dow Jones Industrial Average (DJINDICES: ^DJI), but the S&P 500 (SNPINDEX: ^GSPC) and Nasdaq Composite were able to advance to new record highs.
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American Airlines Group (NASDAQ: AAL) and United Airlines Holdings (NASDAQ: UAL) were the best performers, climbing 11% and 10%, respectively. Norwegian Cruise Line Holdings (NYSE: NCLH) climbed more than 10%, while Carnival (NYSE: CCL) came in with a 7% gain. Delta Air Lines (NYSE: DAL) gained 9% on the day, while Southwest Airlines (NYSE: LUV) advanced more than 6%.
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American Airlines Group (NASDAQ: AAL) and United Airlines Holdings (NASDAQ: UAL) were the best performers, climbing 11% and 10%, respectively. 10 stocks we like better than Norwegian Cruise Line Holdings 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 Norwegian Cruise Line Holdings wasn't one of them!
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American Airlines Group (NASDAQ: AAL) and United Airlines Holdings (NASDAQ: UAL) were the best performers, climbing 11% and 10%, respectively. Today's stock market If there's one industry that's gotten hit the hardest by the pandemic, it's travel.
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5375.0
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2020-08-24 00:00:00 UTC
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Why Airline Shares Are Soaring Today
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AAL
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https://www.nasdaq.com/articles/why-airline-shares-are-soaring-today-2020-08-24
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What happened
Airline shares took off on Monday on positive developments in the global fight against COVID-19, including a report that President Donald Trump could green-light an experimental vaccine made by AstraZeneca by October. The airlines desperately need to put COVID-19 behind them if they have any hope of really getting airborne, and hopeful medical news caused investors to buy into the stocks.
Shares of United Airlines Holdings (NASDAQ: UAL) and American Airlines Group (NASDAQ: AAL) led the sector higher on Monday, each up more than 9% as of 12:45 p.m. EDT. Delta Air Lines (NYSE: DAL), JetBlue Airways (NASDAQ: JBLU), and Spirit Airlines (NYSE: SAVE) were each up more than 8%, while Southwest Airlines (NYSE: LUV), Alaska Air Group (NYSE: ALK), Hawaiian Holdings (NASDAQ: HA), and Allegiant Travel (NASDAQ: ALGT) were all up 5% or more.
So what
Airline stocks have been hit hard by the pandemic, which caused travel demand to crater back in March and April and has kept passengers from flying through the summer. Industry revenue was down more than 80% from last year in the second quarter, and with what little demand there was tied to summer vacations airlines are bracing for further reductions in the months to come.
Airlines are doing what they can to make travelers feel safe, but consumers have said repeatedly they are unlikely to return to the skies in large numbers until there is a widely available COVID-19 vaccine. The stocks were up Monday on talk that the AstraZeneca vaccine could be ahead of schedule, and a Food and Drug Administration decision over the weekend to allow an experimental plasma therapy as treatment for COVID-19 patients.
Image source: Getty Images.
Anything that can push the vaccine timetable forward would be bullish for airlines, and new treatments that hopefully make the pandemic less lethal could help encourage demand as well.
United and American are likely flying highest in the sector because among the "big four" carriers they are seen as more vulnerable than Delta and Southwest, with American in particular being watched due to its high debt load. They've also been more aggressive in trying to capture what little demand is out there, and would likely be the big beneficiaries if these headlines do lead to even a modest uptick in demand.
Shares of Southwest, Alaska, and Allegiant, meanwhile, have held up better since the pandemic began and have tended to react more modestly during the recovery as well. Hawaiian, with its niche route network, will likely see its recovery tied to the overall health of the U.S. and Asian economies once the pandemic is over, and could lag its airline rivals if Hawaii or the U.S. limits international visitors for some time after when there is a vaccine.
Now what
Investors should be careful not to get too excited about any headline concerning progress toward a vaccine or treatment for COVID-19. Investors in biotech stocks know there are a lot of moving parts in vaccine and medicine development, and promising developments don't always lead to cures.
Airlines are doing what they can to encourage people to fly, but absent a vaccine, that's a tall order. The going assumption right now is that it will be the second quarter of 2021, at the earliest, before a vaccine is widespread and airlines begin to regain their footing, and it will be at least 2022 before travel demand returns to pre-pandemic levels.
The industry probably has enough capital to survive that long, but any step forward would be a welcome development. It makes sense for investors to cheer good news on the medical front, but given the continued risks and uncertainty it is best to focus on the top stocks in the industry and be careful about getting too excited about any one development.
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 August 1, 2020
Lou Whiteman owns shares of Delta Air Lines and Spirit Airlines. The Motley Fool owns shares of Spirit Airlines. The Motley Fool recommends Alaska Air Group, Delta Air Lines, Hawaiian Holdings, JetBlue Airways, and Southwest Airlines. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shares of United Airlines Holdings (NASDAQ: UAL) and American Airlines Group (NASDAQ: AAL) led the sector higher on Monday, each up more than 9% as of 12:45 p.m. EDT. What happened Airline shares took off on Monday on positive developments in the global fight against COVID-19, including a report that President Donald Trump could green-light an experimental vaccine made by AstraZeneca by October. Hawaiian, with its niche route network, will likely see its recovery tied to the overall health of the U.S. and Asian economies once the pandemic is over, and could lag its airline rivals if Hawaii or the U.S. limits international visitors for some time after when there is a vaccine.
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Shares of United Airlines Holdings (NASDAQ: UAL) and American Airlines Group (NASDAQ: AAL) led the sector higher on Monday, each up more than 9% as of 12:45 p.m. EDT. Delta Air Lines (NYSE: DAL), JetBlue Airways (NASDAQ: JBLU), and Spirit Airlines (NYSE: SAVE) were each up more than 8%, while Southwest Airlines (NYSE: LUV), Alaska Air Group (NYSE: ALK), Hawaiian Holdings (NASDAQ: HA), and Allegiant Travel (NASDAQ: ALGT) were all up 5% or more. The Motley Fool recommends Alaska Air Group, Delta Air Lines, Hawaiian Holdings, JetBlue Airways, and Southwest Airlines.
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Shares of United Airlines Holdings (NASDAQ: UAL) and American Airlines Group (NASDAQ: AAL) led the sector higher on Monday, each up more than 9% as of 12:45 p.m. EDT. Delta Air Lines (NYSE: DAL), JetBlue Airways (NASDAQ: JBLU), and Spirit Airlines (NYSE: SAVE) were each up more than 8%, while Southwest Airlines (NYSE: LUV), Alaska Air Group (NYSE: ALK), Hawaiian Holdings (NASDAQ: HA), and Allegiant Travel (NASDAQ: ALGT) were all up 5% or more. See the 10 stocks *Stock Advisor returns as of August 1, 2020 Lou Whiteman owns shares of Delta Air Lines and Spirit Airlines.
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Shares of United Airlines Holdings (NASDAQ: UAL) and American Airlines Group (NASDAQ: AAL) led the sector higher on Monday, each up more than 9% as of 12:45 p.m. EDT. Anything that can push the vaccine timetable forward would be bullish for airlines, and new treatments that hopefully make the pandemic less lethal could help encourage demand as well. * 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!
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5376.0
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2020-08-24 00:00:00 UTC
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BUZZ-U.S. STOCKS ON THE MOVE-Apple Inc, Tesla Inc, XBiotech, Onconova Therapeutics
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AAL
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https://www.nasdaq.com/articles/buzz-u.s.-stocks-on-the-move-apple-inc-tesla-inc-xbiotech-onconova-therapeutics-2020-08-24
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nan
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nan
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Eikon search string for individual stock moves: STXBZ
The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi
The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh
The S&P 500 and Nasdaq opened at record levels on Monday after the U.S. health regulator approved the emergency use of blood plasma in COVID-19 patients and on report the Trump administration may fast-track a vaccine candidate. .N
At 9.30 a.m.ET, the Dow Jones Industrial Average .DJI was up 0.63% at 28,105.53. The S&P 500 .SPX was up 0.62%, at 3,418.09 and the Nasdaq Composite .IXIC was up 1.18% at 11,445.148. The top three S&P 500 .PG.INX percentage gainers: ** Best Buy Co Inc , up 3.8% ** Tapestry Inc , up 3.8% ** Westrock Company , up 3.4% The top three S&P 500 .PL.INX percentage losers: ** Ventas Inc , down 1.6% ** Healthpeak Properties Inc , down 1.5% ** Prologis Inc , down 1.2% The top three NYSE .PG.N percentage gainers: ** LG Display Co , up 14% ** Party City Holdco , up 13% ** Rcket Companies Inc , up 11.6% The top three NYSE .PL.N percentage losers: ** Molson Coors Beverage Co , down 6.7% ** AIM ImmunoTech Inc , down 6.6% ** Mesa Royalty Trust MTR.N, down 5.6% The top three Nasdaq .PG.O percentage gainers: ** Cancer Genetics Inc , up 187.9% ** Gores Metropoulos Inc , up 60.4% ** Sonnet Biotherapeutics Holdings Inc , up 52.9% The top three Nasdaq .PL.O percentage losers: ** Odonate Therapeutics Inc , down 29.8% ** Tricida Inc , down 23.8% ** Mohawk group Holdings Inc , down 16.5% ** Trevena Inc TRVN.O: up 6.1%
BUZZ-Jumps as co begins COVID-19 drug candidate study ** Facebook Inc FB.O: up 2.7%
BUZZ-Jefferies says Instagram Reels could be next big story ** Apple Inc AAPL.O: up 2.7%
BUZZ-Set to open above $500 for first time ahead of stock split ** Spotify Technology SPOT.N: up 1.3%
BUZZ-Rises on League of Legends streaming tie-up ** Brainsway Ltd BWAY.O: up 27.4%
BUZZ-Rises after FDA gives nod to device that helps quit smoking ** NN Inc NNBR.O: up 18.3%
BUZZ-Gains as co plans $825 mln sale of life sciences unit ** Gores Metropoulos Inc GMHIU.O: up 6.7%
BUZZ-Rises on SPAC deal to take Peter Thiel-backed Luminar public ** Proteostasis Therapeutics PTI.O: up 13.5%
BUZZ-Rises on merger with Yumanity Therapeutics ** Onconova Therapeutics Inc ONTX.O: down 71.5%
BUZZ-Onconova falls as lead blood disorder drug candidate fails late-stage study ** XBiotech Inc XBIT.O: up 5.6%
BUZZ-Jumps as U.S. FDA move clears way for COVID-19 plasma test ** Norwegian Cruise Line NCLH.N: up 1.6% ** Hilton Worldwide HLT.N: up 0.3% ** American Airlines Group Inc AAL.O: up 2.1%
BUZZ-Travel stocks jump as COVID-19 treatment efforts spur risk-on mood ** Tesla Inc TSLA.O: up 3.0%
BUZZ-Set for record high; Wedbush talks up China prospects ** Alibaba Group Holding Ltd BABA.N: up 2.8%
BUZZ-U.S.-listed shares set to open at all-time peak
The 11 major S&P 500 sectors:
Communication Services
.SPLRCL
up 1.30%
Consumer Discretionary
.SPLRCD
up 1.05%
Consumer Staples
.SPLRCS
up 0.10%
Energy
.SPNY
up 0.54%
Financial
.SPSY
up 0.44%
Health
.SPXHC
up 0.18%
Industrial
.SPLRCI
up 0.62%
Information Technology
.SPLRCT
up 1.21%
Materials
.SPLRCM
up 1.17%
Real Estate
.SPLRCR
down 0.65%
Utilities
.SPLRCU
down 0.11%
(Compiled by Shivani Kumaresan in Bengaluru)
((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.
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The top three S&P 500 .PG.INX percentage gainers: ** Best Buy Co Inc , up 3.8% ** Tapestry Inc , up 3.8% ** Westrock Company , up 3.4% The top three S&P 500 .PL.INX percentage losers: ** Ventas Inc , down 1.6% ** Healthpeak Properties Inc , down 1.5% ** Prologis Inc , down 1.2% The top three NYSE .PG.N percentage gainers: ** LG Display Co , up 14% ** Party City Holdco , up 13% ** Rcket Companies Inc , up 11.6% The top three NYSE .PL.N percentage losers: ** Molson Coors Beverage Co , down 6.7% ** AIM ImmunoTech Inc , down 6.6% ** Mesa Royalty Trust MTR.N, down 5.6% The top three Nasdaq .PG.O percentage gainers: ** Cancer Genetics Inc , up 187.9% ** Gores Metropoulos Inc , up 60.4% ** Sonnet Biotherapeutics Holdings Inc , up 52.9% The top three Nasdaq .PL.O percentage losers: ** Odonate Therapeutics Inc , down 29.8% ** Tricida Inc , down 23.8% ** Mohawk group Holdings Inc , down 16.5% ** Trevena Inc TRVN.O: up 6.1% BUZZ-Jumps as co begins COVID-19 drug candidate study ** Facebook Inc FB.O: up 2.7% BUZZ-Jefferies says Instagram Reels could be next big story ** Apple Inc AAPL.O: up 2.7% BUZZ-Set to open above $500 for first time ahead of stock split ** Spotify Technology SPOT.N: up 1.3% BUZZ-Rises on League of Legends streaming tie-up ** Brainsway Ltd BWAY.O: up 27.4% BUZZ-Rises after FDA gives nod to device that helps quit smoking ** NN Inc NNBR.O: up 18.3% BUZZ-Gains as co plans $825 mln sale of life sciences unit ** Gores Metropoulos Inc GMHIU.O: up 6.7% BUZZ-Rises on SPAC deal to take Peter Thiel-backed Luminar public ** Proteostasis Therapeutics PTI.O: up 13.5% BUZZ-Rises on merger with Yumanity Therapeutics ** Onconova Therapeutics Inc ONTX.O: down 71.5% BUZZ-Onconova falls as lead blood disorder drug candidate fails late-stage study ** XBiotech Inc XBIT.O: up 5.6% BUZZ-Jumps as U.S. FDA move clears way for COVID-19 plasma test ** Norwegian Cruise Line NCLH.N: up 1.6% ** Hilton Worldwide HLT.N: up 0.3% ** American Airlines Group Inc AAL.O: up 2.1% BUZZ-Travel stocks jump as COVID-19 treatment efforts spur risk-on mood ** Tesla Inc TSLA.O: up 3.0% BUZZ-Set for record high; Wedbush talks up China prospects ** Alibaba Group Holding Ltd BABA.N: up 2.8% BUZZ-U.S.-listed shares set to open at all-time peak The 11 major S&P 500 sectors: Communication Services Eikon search string for individual stock moves: STXBZ The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh The S&P 500 and Nasdaq opened at record levels on Monday after the U.S. health regulator approved the emergency use of blood plasma in COVID-19 patients and on report the Trump administration may fast-track a vaccine candidate. down 0.11% (Compiled by Shivani Kumaresan in Bengaluru) ((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.
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The top three S&P 500 .PG.INX percentage gainers: ** Best Buy Co Inc , up 3.8% ** Tapestry Inc , up 3.8% ** Westrock Company , up 3.4% The top three S&P 500 .PL.INX percentage losers: ** Ventas Inc , down 1.6% ** Healthpeak Properties Inc , down 1.5% ** Prologis Inc , down 1.2% The top three NYSE .PG.N percentage gainers: ** LG Display Co , up 14% ** Party City Holdco , up 13% ** Rcket Companies Inc , up 11.6% The top three NYSE .PL.N percentage losers: ** Molson Coors Beverage Co , down 6.7% ** AIM ImmunoTech Inc , down 6.6% ** Mesa Royalty Trust MTR.N, down 5.6% The top three Nasdaq .PG.O percentage gainers: ** Cancer Genetics Inc , up 187.9% ** Gores Metropoulos Inc , up 60.4% ** Sonnet Biotherapeutics Holdings Inc , up 52.9% The top three Nasdaq .PL.O percentage losers: ** Odonate Therapeutics Inc , down 29.8% ** Tricida Inc , down 23.8% ** Mohawk group Holdings Inc , down 16.5% ** Trevena Inc TRVN.O: up 6.1% BUZZ-Jumps as co begins COVID-19 drug candidate study ** Facebook Inc FB.O: up 2.7% BUZZ-Jefferies says Instagram Reels could be next big story ** Apple Inc AAPL.O: up 2.7% BUZZ-Set to open above $500 for first time ahead of stock split ** Spotify Technology SPOT.N: up 1.3% BUZZ-Rises on League of Legends streaming tie-up ** Brainsway Ltd BWAY.O: up 27.4% BUZZ-Rises after FDA gives nod to device that helps quit smoking ** NN Inc NNBR.O: up 18.3% BUZZ-Gains as co plans $825 mln sale of life sciences unit ** Gores Metropoulos Inc GMHIU.O: up 6.7% BUZZ-Rises on SPAC deal to take Peter Thiel-backed Luminar public ** Proteostasis Therapeutics PTI.O: up 13.5% BUZZ-Rises on merger with Yumanity Therapeutics ** Onconova Therapeutics Inc ONTX.O: down 71.5% BUZZ-Onconova falls as lead blood disorder drug candidate fails late-stage study ** XBiotech Inc XBIT.O: up 5.6% BUZZ-Jumps as U.S. FDA move clears way for COVID-19 plasma test ** Norwegian Cruise Line NCLH.N: up 1.6% ** Hilton Worldwide HLT.N: up 0.3% ** American Airlines Group Inc AAL.O: up 2.1% BUZZ-Travel stocks jump as COVID-19 treatment efforts spur risk-on mood ** Tesla Inc TSLA.O: up 3.0% BUZZ-Set for record high; Wedbush talks up China prospects ** Alibaba Group Holding Ltd BABA.N: up 2.8% BUZZ-U.S.-listed shares set to open at all-time peak The 11 major S&P 500 sectors: Communication Services Eikon search string for individual stock moves: STXBZ The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh The S&P 500 and Nasdaq opened at record levels on Monday after the U.S. health regulator approved the emergency use of blood plasma in COVID-19 patients and on report the Trump administration may fast-track a vaccine candidate. down 0.11% (Compiled by Shivani Kumaresan in Bengaluru) ((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.
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The top three S&P 500 .PG.INX percentage gainers: ** Best Buy Co Inc , up 3.8% ** Tapestry Inc , up 3.8% ** Westrock Company , up 3.4% The top three S&P 500 .PL.INX percentage losers: ** Ventas Inc , down 1.6% ** Healthpeak Properties Inc , down 1.5% ** Prologis Inc , down 1.2% The top three NYSE .PG.N percentage gainers: ** LG Display Co , up 14% ** Party City Holdco , up 13% ** Rcket Companies Inc , up 11.6% The top three NYSE .PL.N percentage losers: ** Molson Coors Beverage Co , down 6.7% ** AIM ImmunoTech Inc , down 6.6% ** Mesa Royalty Trust MTR.N, down 5.6% The top three Nasdaq .PG.O percentage gainers: ** Cancer Genetics Inc , up 187.9% ** Gores Metropoulos Inc , up 60.4% ** Sonnet Biotherapeutics Holdings Inc , up 52.9% The top three Nasdaq .PL.O percentage losers: ** Odonate Therapeutics Inc , down 29.8% ** Tricida Inc , down 23.8% ** Mohawk group Holdings Inc , down 16.5% ** Trevena Inc TRVN.O: up 6.1% BUZZ-Jumps as co begins COVID-19 drug candidate study ** Facebook Inc FB.O: up 2.7% BUZZ-Jefferies says Instagram Reels could be next big story ** Apple Inc AAPL.O: up 2.7% BUZZ-Set to open above $500 for first time ahead of stock split ** Spotify Technology SPOT.N: up 1.3% BUZZ-Rises on League of Legends streaming tie-up ** Brainsway Ltd BWAY.O: up 27.4% BUZZ-Rises after FDA gives nod to device that helps quit smoking ** NN Inc NNBR.O: up 18.3% BUZZ-Gains as co plans $825 mln sale of life sciences unit ** Gores Metropoulos Inc GMHIU.O: up 6.7% BUZZ-Rises on SPAC deal to take Peter Thiel-backed Luminar public ** Proteostasis Therapeutics PTI.O: up 13.5% BUZZ-Rises on merger with Yumanity Therapeutics ** Onconova Therapeutics Inc ONTX.O: down 71.5% BUZZ-Onconova falls as lead blood disorder drug candidate fails late-stage study ** XBiotech Inc XBIT.O: up 5.6% BUZZ-Jumps as U.S. FDA move clears way for COVID-19 plasma test ** Norwegian Cruise Line NCLH.N: up 1.6% ** Hilton Worldwide HLT.N: up 0.3% ** American Airlines Group Inc AAL.O: up 2.1% BUZZ-Travel stocks jump as COVID-19 treatment efforts spur risk-on mood ** Tesla Inc TSLA.O: up 3.0% BUZZ-Set for record high; Wedbush talks up China prospects ** Alibaba Group Holding Ltd BABA.N: up 2.8% BUZZ-U.S.-listed shares set to open at all-time peak The 11 major S&P 500 sectors: Communication Services Eikon search string for individual stock moves: STXBZ The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh The S&P 500 and Nasdaq opened at record levels on Monday after the U.S. health regulator approved the emergency use of blood plasma in COVID-19 patients and on report the Trump administration may fast-track a vaccine candidate. .N At 9.30 a.m.ET, the Dow Jones Industrial Average .DJI was up 0.63% at 28,105.53.
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The top three S&P 500 .PG.INX percentage gainers: ** Best Buy Co Inc , up 3.8% ** Tapestry Inc , up 3.8% ** Westrock Company , up 3.4% The top three S&P 500 .PL.INX percentage losers: ** Ventas Inc , down 1.6% ** Healthpeak Properties Inc , down 1.5% ** Prologis Inc , down 1.2% The top three NYSE .PG.N percentage gainers: ** LG Display Co , up 14% ** Party City Holdco , up 13% ** Rcket Companies Inc , up 11.6% The top three NYSE .PL.N percentage losers: ** Molson Coors Beverage Co , down 6.7% ** AIM ImmunoTech Inc , down 6.6% ** Mesa Royalty Trust MTR.N, down 5.6% The top three Nasdaq .PG.O percentage gainers: ** Cancer Genetics Inc , up 187.9% ** Gores Metropoulos Inc , up 60.4% ** Sonnet Biotherapeutics Holdings Inc , up 52.9% The top three Nasdaq .PL.O percentage losers: ** Odonate Therapeutics Inc , down 29.8% ** Tricida Inc , down 23.8% ** Mohawk group Holdings Inc , down 16.5% ** Trevena Inc TRVN.O: up 6.1% BUZZ-Jumps as co begins COVID-19 drug candidate study ** Facebook Inc FB.O: up 2.7% BUZZ-Jefferies says Instagram Reels could be next big story ** Apple Inc AAPL.O: up 2.7% BUZZ-Set to open above $500 for first time ahead of stock split ** Spotify Technology SPOT.N: up 1.3% BUZZ-Rises on League of Legends streaming tie-up ** Brainsway Ltd BWAY.O: up 27.4% BUZZ-Rises after FDA gives nod to device that helps quit smoking ** NN Inc NNBR.O: up 18.3% BUZZ-Gains as co plans $825 mln sale of life sciences unit ** Gores Metropoulos Inc GMHIU.O: up 6.7% BUZZ-Rises on SPAC deal to take Peter Thiel-backed Luminar public ** Proteostasis Therapeutics PTI.O: up 13.5% BUZZ-Rises on merger with Yumanity Therapeutics ** Onconova Therapeutics Inc ONTX.O: down 71.5% BUZZ-Onconova falls as lead blood disorder drug candidate fails late-stage study ** XBiotech Inc XBIT.O: up 5.6% BUZZ-Jumps as U.S. FDA move clears way for COVID-19 plasma test ** Norwegian Cruise Line NCLH.N: up 1.6% ** Hilton Worldwide HLT.N: up 0.3% ** American Airlines Group Inc AAL.O: up 2.1% BUZZ-Travel stocks jump as COVID-19 treatment efforts spur risk-on mood ** Tesla Inc TSLA.O: up 3.0% BUZZ-Set for record high; Wedbush talks up China prospects ** Alibaba Group Holding Ltd BABA.N: up 2.8% BUZZ-U.S.-listed shares set to open at all-time peak The 11 major S&P 500 sectors: Communication Services Eikon search string for individual stock moves: STXBZ The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh The S&P 500 and Nasdaq opened at record levels on Monday after the U.S. health regulator approved the emergency use of blood plasma in COVID-19 patients and on report the Trump administration may fast-track a vaccine candidate. .N At 9.30 a.m.ET, the Dow Jones Industrial Average .DJI was up 0.63% at 28,105.53.
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5377.0
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2020-08-24 00:00:00 UTC
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Notable Monday Option Activity: SBUX, DAL, AAL
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AAL
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https://www.nasdaq.com/articles/notable-monday-option-activity%3A-sbux-dal-aal-2020-08-24
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Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in Starbucks Corp. (Symbol: SBUX), where a total volume of 49,502 contracts has been traded thus far today, a contract volume which is representative of approximately 5.0 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 66.3% of SBUX's average daily trading volume over the past month, of 7.5 million shares. Particularly high volume was seen for the $80 strike call option expiring September 18, 2020, with 10,332 contracts trading so far today, representing approximately 1.0 million underlying shares of SBUX. Below is a chart showing SBUX's trailing twelve month trading history, with the $80 strike highlighted in orange:
Delta Air Lines Inc (Symbol: DAL) saw options trading volume of 110,696 contracts, representing approximately 11.1 million underlying shares or approximately 55.8% of DAL's average daily trading volume over the past month, of 19.8 million shares. Especially high volume was seen for the $30 strike call option expiring August 28, 2020, with 18,001 contracts trading so far today, representing approximately 1.8 million underlying shares of DAL. Below is a chart showing DAL's trailing twelve month trading history, with the $30 strike highlighted in orange:
And American Airlines Group Inc (Symbol: AAL) saw options trading volume of 342,671 contracts, representing approximately 34.3 million underlying shares or approximately 51.2% of AAL's average daily trading volume over the past month, of 66.9 million shares. Especially high volume was seen for the $13 strike call option expiring August 28, 2020, with 32,409 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 $13 strike highlighted in orange:
For the various different available expirations for SBUX options, DAL 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.
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Especially high volume was seen for the $13 strike call option expiring August 28, 2020, with 32,409 contracts trading so far today, representing approximately 3.2 million underlying shares of AAL. Below is a chart showing DAL's trailing twelve month trading history, with the $30 strike highlighted in orange: And American Airlines Group Inc (Symbol: AAL) saw options trading volume of 342,671 contracts, representing approximately 34.3 million underlying shares or approximately 51.2% of AAL's average daily trading volume over the past month, of 66.9 million shares. Below is a chart showing AAL's trailing twelve month trading history, with the $13 strike highlighted in orange: For the various different available expirations for SBUX options, DAL options, or AAL options, visit StockOptionsChannel.com.
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Below is a chart showing DAL's trailing twelve month trading history, with the $30 strike highlighted in orange: And American Airlines Group Inc (Symbol: AAL) saw options trading volume of 342,671 contracts, representing approximately 34.3 million underlying shares or approximately 51.2% of AAL's average daily trading volume over the past month, of 66.9 million shares. Especially high volume was seen for the $13 strike call option expiring August 28, 2020, with 32,409 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 $13 strike highlighted in orange: For the various different available expirations for SBUX options, DAL options, or AAL options, visit StockOptionsChannel.com.
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Below is a chart showing DAL's trailing twelve month trading history, with the $30 strike highlighted in orange: And American Airlines Group Inc (Symbol: AAL) saw options trading volume of 342,671 contracts, representing approximately 34.3 million underlying shares or approximately 51.2% of AAL's average daily trading volume over the past month, of 66.9 million shares. Especially high volume was seen for the $13 strike call option expiring August 28, 2020, with 32,409 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 $13 strike highlighted in orange: For the various different available expirations for SBUX options, DAL options, or AAL options, visit StockOptionsChannel.com.
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Below is a chart showing DAL's trailing twelve month trading history, with the $30 strike highlighted in orange: And American Airlines Group Inc (Symbol: AAL) saw options trading volume of 342,671 contracts, representing approximately 34.3 million underlying shares or approximately 51.2% of AAL's average daily trading volume over the past month, of 66.9 million shares. Especially high volume was seen for the $13 strike call option expiring August 28, 2020, with 32,409 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 $13 strike highlighted in orange: For the various different available expirations for SBUX options, DAL options, or AAL options, visit StockOptionsChannel.com.
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5378.0
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2020-08-24 00:00:00 UTC
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Delta Doubles Staffing for ‘Pit Stop’ Cleaning as Rivals Adjust Process
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AAL
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https://www.nasdaq.com/articles/delta-doubles-staffing-for-pit-stop-cleaning-as-rivals-adjust-process-2020-08-24
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Delta Air Lines (NYSE:DAL) has doubled staffing to ensure more-thorough pre-flight cleaning “pit stops,” Reuters reported, citing an interview with Mike Medeiros, who leads Delta’s new global cleanliness division.
Source: Markus Mainka / Shutterstock.com
Delta now deploys at least eight cabin cleaners, up from three to five previously. The cleaners disinfect and wipe down the cabin, which then must pass inspection by a flight attendant and gate agent. Delta is also purchasing test kits to measure bacteria on surfaces.
The airline hopes to enhance cleaning without increasing turnaround time. On average, it takes 20 minutes to clean a domestic flight, up from 10-15 minutes before the Covid-19 pandemic.
Among other carriers, American Airlines (NASDAQ:AAL) said it has doubled its cabin cleaning crews and has not had to add extra turnaround time. United Airlines (NASDAQ:UAL) said it has added extra time for cleaning but, because of lighter scheduling, has not had to add more workers.
Southwest Airlines (NYSE:LUV) has not added extra staff and is scaling back some of its pre-flight cleaning in order to maintain a 45-minute turnaround time. It is still using an electrostatic and a spray to kill viruses and protect surfaces for 30 days, as well as disinfecting lavatories.
DAL stock is up almost 11% this month, compared to an 8.3% gain in the U.S. Global Jets ETF (NYSEArca:JETS), the 40-stock air travel industry-focused exchange-traded fund.
The post Delta Doubles Staffing for ‘Pit Stop’ Cleaning as Rivals Adjust Process appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Among other carriers, American Airlines (NASDAQ:AAL) said it has doubled its cabin cleaning crews and has not had to add extra turnaround time. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Delta Air Lines (NYSE:DAL) has doubled staffing to ensure more-thorough pre-flight cleaning “pit stops,” Reuters reported, citing an interview with Mike Medeiros, who leads Delta’s new global cleanliness division. Southwest Airlines (NYSE:LUV) has not added extra staff and is scaling back some of its pre-flight cleaning in order to maintain a 45-minute turnaround time.
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Among other carriers, American Airlines (NASDAQ:AAL) said it has doubled its cabin cleaning crews and has not had to add extra turnaround time. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Delta Air Lines (NYSE:DAL) has doubled staffing to ensure more-thorough pre-flight cleaning “pit stops,” Reuters reported, citing an interview with Mike Medeiros, who leads Delta’s new global cleanliness division. The post Delta Doubles Staffing for ‘Pit Stop’ Cleaning as Rivals Adjust Process appeared first on InvestorPlace.
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Among other carriers, American Airlines (NASDAQ:AAL) said it has doubled its cabin cleaning crews and has not had to add extra turnaround time. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Delta Air Lines (NYSE:DAL) has doubled staffing to ensure more-thorough pre-flight cleaning “pit stops,” Reuters reported, citing an interview with Mike Medeiros, who leads Delta’s new global cleanliness division. Southwest Airlines (NYSE:LUV) has not added extra staff and is scaling back some of its pre-flight cleaning in order to maintain a 45-minute turnaround time.
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Among other carriers, American Airlines (NASDAQ:AAL) said it has doubled its cabin cleaning crews and has not had to add extra turnaround time. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Delta Air Lines (NYSE:DAL) has doubled staffing to ensure more-thorough pre-flight cleaning “pit stops,” Reuters reported, citing an interview with Mike Medeiros, who leads Delta’s new global cleanliness division. Source: Markus Mainka / Shutterstock.com Delta now deploys at least eight cabin cleaners, up from three to five previously.
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5379.0
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2020-08-24 00:00:00 UTC
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Pre-Market Most Active for Aug 24, 2020 : ADMA, NIO, AAPL, AAL, RKT, SQQQ, QQQ, PDD, NCLH, CCL, GE, BABA
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AAL
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https://www.nasdaq.com/articles/pre-market-most-active-for-aug-24-2020-%3A-adma-nio-aapl-aal-rkt-sqqq-qqq-pdd-nclh-ccl-ge
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The NASDAQ 100 Pre-Market Indicator is up 133.86 to 11,689.02. The total Pre-Market volume is currently 29,621,705 shares traded.
The following are the most active stocks for the pre-market session:
ADMA Biologics Inc (ADMA) is +1.04 at $3.56, with 11,661,876 shares traded. As reported by Zacks, the current mean recommendation for ADMA is in the "strong buy range".
NIO Inc. (NIO) is +0.38 at $14.50, with 1,728,630 shares traded. NIO's current last sale is 111.54% of the target price of $13.
Apple Inc. (AAPL) is +17.17 at $514.65, with 1,671,887 shares traded. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2020. The consensus EPS forecast is $2.73. , following a 52-week high recorded in prior regular session.
American Airlines Group, Inc. (AAL) is +0.38 at $12.54, with 1,397,479 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Mar 2021. The consensus EPS forecast is $-1.62. AAL's current last sale is 104.5% of the target price of $12.
Rocket Companies, Inc. (RKT) is +2.16 at $28.05, with 877,126 shares traded. RKT's current last sale is 155.83% of the target price of $18.
ProShares UltraPro Short QQQ (SQQQ) is -0.8198 at $23.72, with 633,201 shares traded., following a 52-week high recorded in prior regular session.
Invesco QQQ Trust, Series 1 (QQQ) is +3.11 at $284.98, with 632,229 shares traded., following a 52-week high recorded in prior regular session.
Pinduoduo Inc. (PDD) is +0.54 at $84.54, with 587,804 shares traded. PDD's current last sale is 99.46% of the target price of $85.
Norwegian Cruise Line Holdings Ltd. (NCLH) is +0.5399 at $16.10, with 493,876 shares traded. NCLH's current last sale is 100.62% of the target price of $16.
Carnival Corporation (CCL) is +0.51 at $15.16, with 487,975 shares traded. CCL's current last sale is 94.75% of the target price of $16.
General Electric Company (GE) is +0.08 at $6.39, with 486,181 shares traded. As reported by Zacks, the current mean recommendation for GE is in the "buy range".
Alibaba Group Holding Limited (BABA) is +7.7 at $273.50, with 366,219 shares traded. BABA's current last sale is 94.31% of the target price of $290.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines Group, Inc. (AAL) is +0.38 at $12.54, with 1,397,479 shares traded. AAL's current last sale is 104.5% of the target price of $12. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2020.
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American Airlines Group, Inc. (AAL) is +0.38 at $12.54, with 1,397,479 shares traded. AAL's current last sale is 104.5% of the target price of $12. , following a 52-week high recorded in prior regular session.
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American Airlines Group, Inc. (AAL) is +0.38 at $12.54, with 1,397,479 shares traded. AAL's current last sale is 104.5% of the target price of $12. The total Pre-Market volume is currently 29,621,705 shares traded.
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American Airlines Group, Inc. (AAL) is +0.38 at $12.54, with 1,397,479 shares traded. AAL's current last sale is 104.5% of the target price of $12. NIO's current last sale is 111.54% of the target price of $13.
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5380.0
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2020-08-24 00:00:00 UTC
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FOCUS-Delta doubles cabin cleaners in 'pit stop' revamp, buys kits to test for germs
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AAL
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https://www.nasdaq.com/articles/focus-delta-doubles-cabin-cleaners-in-pit-stop-revamp-buys-kits-to-test-for-germs-2020-08
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nan
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By Tracy Rucinski
CHICAGO, Aug 24 (Reuters) - Delta Air Lines DAL.N has doubled its staffing to handle revamped pre-flight "pit stops" for deeper cleaning and wants to ensure that tray tables and restroom door handles are germ-free with a new testing process, an executive told Reuters.
Airlines' efforts to reassure travelers of their safety during the pandemic have spurred a behind-the-scenes scramble to complete the enhanced cleaning that they are promising without sacrificing turnaround times, a cornerstone of profitability, once more passengers take to the skies.
"We've done quite a lot of change to our turn process," the head of Delta's new Global Cleanliness division Mike Medeiros said in an interview detailing the airline's strategy for "turns" -- the time a plane spends on the ground between flights.
Depending on the aircraft's size, Delta is deploying at least eight pre-flight cabin cleaners, up from three to five previously, and has adopted a new "pit stop mentality" based on industrial engineering studies into the extra resources required for cleaning each plane type, he said.
After cleaners spray with disinfectant and wipe down high-touch surfaces, a flight attendant and gate agent walk the cabin together to inspect. If the cabin is not up to par, they call back the cleaners.
"Even if that means taking a delay to the flight," said Medeiros, who is among managers who receive daily cleanliness reports in their inbox based on customer surveys taken after every flight.
"As important as (being) on-time is to our company, we know that cleanliness, particularly in this environment but also going forward, will be just as important," he said.
Delta's average clean time for its domestic fleet is now 20 minutes, up from 10 minutes to 15 minutes previously depending on the aircraft size, but it aims to speed up the procedure to protect its turn times once schedules are heavier by adding resources.
To verify levels of cleanliness, Delta is purchasing ATP test kits that measure the amount of bacteria on airplane and airport surfaces. The kits cannot test for COVID-19.
It has already purchased 30 of the hand-held units, which cost about $1,000 each, to test the effectiveness of its cleaning program. The plan is to buy the tests for all of its global airport bases, though details are still being developed.
Among large U.S. rivals, American Airlines AAL.O said it has doubled the strength of its cabin cleaning crews but has not had to add extra time to its turns given lighter passenger loads and fewer scheduled flights.
United Airlines UAL.O said it has added some extra time to its cleaning process but not workers given the lighter loads.
Southwest Airlines LUV.N, whose low-cost model depends on quick turns, has not added staffing and said this month it was scaling back some pre-flight cleaning with a view to preserving an average 45-minute turn once its schedule ramps up. It is still using an electrostatic and an anti-microbial spray that kill viruses and shield surfaces for 30 days, as well as a broad-spectrum disinfectant for lavatories and tray tables before every flight, but is not wiping down seat belts or arm rests.
All of the airlines are eyeing new cleaning technology. United, for example, is testing ultraviolet sanitation deployed by drones and hand-held wands for airport and aircraft surfaces.
Delta is rolling out antimicrobial LED light technology by Vital Vio in all its aircraft restrooms that will continuously prevent the growth of bacteria, fungi, mold and yeast.
The airline is also in talks with Boeing Co BA.N and Airbus SE AIR.PA on developing touchless restrooms and is studying a UV light that would sterilize lavatories when they are not in use, Medeiros said.
Last week Delta said it would continue blocking middle seats through Jan. 6. Southwest is limiting seating capacity through October, while American and United are selling all seats.
Beyond the jet, Delta is looking at bipolar ionization to improve air filtration at its airport facilities, including jetways. Airplanes already use hospital-grade HEPA that refresh air every two to four minutes.
"We're not afraid of adding costs to the business, but it has to add value," said Medeiros. "If people are fearful or uncomfortable, travel won't come back in the near term."
(Reporting by Tracy Rucinski; Editing by Daniel Wallis)
((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.
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Among large U.S. rivals, American Airlines AAL.O said it has doubled the strength of its cabin cleaning crews but has not had to add extra time to its turns given lighter passenger loads and fewer scheduled flights. Airlines' efforts to reassure travelers of their safety during the pandemic have spurred a behind-the-scenes scramble to complete the enhanced cleaning that they are promising without sacrificing turnaround times, a cornerstone of profitability, once more passengers take to the skies. Depending on the aircraft's size, Delta is deploying at least eight pre-flight cabin cleaners, up from three to five previously, and has adopted a new "pit stop mentality" based on industrial engineering studies into the extra resources required for cleaning each plane type, he said.
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Among large U.S. rivals, American Airlines AAL.O said it has doubled the strength of its cabin cleaning crews but has not had to add extra time to its turns given lighter passenger loads and fewer scheduled flights. By Tracy Rucinski CHICAGO, Aug 24 (Reuters) - Delta Air Lines DAL.N has doubled its staffing to handle revamped pre-flight "pit stops" for deeper cleaning and wants to ensure that tray tables and restroom door handles are germ-free with a new testing process, an executive told Reuters. Depending on the aircraft's size, Delta is deploying at least eight pre-flight cabin cleaners, up from three to five previously, and has adopted a new "pit stop mentality" based on industrial engineering studies into the extra resources required for cleaning each plane type, he said.
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Among large U.S. rivals, American Airlines AAL.O said it has doubled the strength of its cabin cleaning crews but has not had to add extra time to its turns given lighter passenger loads and fewer scheduled flights. By Tracy Rucinski CHICAGO, Aug 24 (Reuters) - Delta Air Lines DAL.N has doubled its staffing to handle revamped pre-flight "pit stops" for deeper cleaning and wants to ensure that tray tables and restroom door handles are germ-free with a new testing process, an executive told Reuters. "We've done quite a lot of change to our turn process," the head of Delta's new Global Cleanliness division Mike Medeiros said in an interview detailing the airline's strategy for "turns" -- the time a plane spends on the ground between flights.
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Among large U.S. rivals, American Airlines AAL.O said it has doubled the strength of its cabin cleaning crews but has not had to add extra time to its turns given lighter passenger loads and fewer scheduled flights. "We've done quite a lot of change to our turn process," the head of Delta's new Global Cleanliness division Mike Medeiros said in an interview detailing the airline's strategy for "turns" -- the time a plane spends on the ground between flights. It has already purchased 30 of the hand-held units, which cost about $1,000 each, to test the effectiveness of its cleaning program.
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5381.0
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2020-08-24 00:00:00 UTC
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American Airlines to Apply Virus-Killing Surface Treatment
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AAL
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https://www.nasdaq.com/articles/american-airlines-to-apply-virus-killing-surface-treatment-2020-08-24
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American Airlines Group (NASDAQ: AAL) announced on Monday that it has received approval from the Environmental Protection Agency (EPA) to begin using a surface coating technology that inhibits the growth of bacteria and kills the coronavirus for up to seven days, in an effort to upgrade its Clean Commitment strategy.
The surface treatment, called SurfaceWise2, is made by Texas-based Allied BioScience. American said the SurfaceWise2 solution "is the first-ever long-lasting product to help fight the spread of the novel coronavirus" to be approved by the EPA.
Image source: American Airlines Group.
The airline said it plans to use the electrostatic spray solution on the interiors of its entire fleet, including its American Eagle regional partners, in the coming months.
Allied BioScience says the coating "provides an invisible barrier to inhibit the growth of bacteria, fungi (mold and mildew) and algae." It said the product has been shown to provide continuous protection on surfaces including plastic, stainless steel, rubber and textiles.
SurfaceWise2 breaks down and kills virus cells, including coronaviruses and the flu. "We look forward to also seeing SurfaceWise2 used in offices, schools, gymnasiums and other high-traffic areas to support the nation in safely reopening," said Maha El-Sayed, Allied Allied BioScience's chief science officer.
Airlines including American have been announcing new safety and cleaning protocols to try to make consumers comfortable with air travel amid the coronavirus crisis. United Airlines Holdings (NASDAQ: UAL) has teamed up with disinfectant maker Clorox (NYSE: CLX) and the Cleveland Clinic for its program called United CleanPlus.
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Howard Smith 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.
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American Airlines Group (NASDAQ: AAL) announced on Monday that it has received approval from the Environmental Protection Agency (EPA) to begin using a surface coating technology that inhibits the growth of bacteria and kills the coronavirus for up to seven days, in an effort to upgrade its Clean Commitment strategy. The airline said it plans to use the electrostatic spray solution on the interiors of its entire fleet, including its American Eagle regional partners, in the coming months. Airlines including American have been announcing new safety and cleaning protocols to try to make consumers comfortable with air travel amid the coronavirus crisis.
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American Airlines Group (NASDAQ: AAL) announced on Monday that it has received approval from the Environmental Protection Agency (EPA) to begin using a surface coating technology that inhibits the growth of bacteria and kills the coronavirus for up to seven days, in an effort to upgrade its Clean Commitment strategy. Image source: American Airlines Group. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.
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American Airlines Group (NASDAQ: AAL) announced on Monday that it has received approval from the Environmental Protection Agency (EPA) to begin using a surface coating technology that inhibits the growth of bacteria and kills the coronavirus for up to seven days, in an effort to upgrade its Clean Commitment strategy. 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 August 1, 2020 Howard Smith has no position in any of the stocks mentioned.
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American Airlines Group (NASDAQ: AAL) announced on Monday that it has received approval from the Environmental Protection Agency (EPA) to begin using a surface coating technology that inhibits the growth of bacteria and kills the coronavirus for up to seven days, in an effort to upgrade its Clean Commitment strategy. 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. The Motley Fool has no position in any of the stocks mentioned.
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5382.0
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2020-08-23 00:00:00 UTC
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EPA to OK American Airlines use of surface coating to fight COVID-19
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AAL
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https://www.nasdaq.com/articles/epa-to-ok-american-airlines-use-of-surface-coating-to-fight-covid-19-2020-08-23
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nan
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By David Shepardson and Tracy Rucinski
Aug 23 (Reuters) - The U.S. Environmental Protection Agency is set to announce on Monday it will issue an emergency exemption to the state of Texas permitting it to allow American Airlines Group Inc AAL.O to use a new surface coating that kills coronaviruses for up to seven days, sources briefed on the matter said.
EPA officials said the agency would approve the emergency exemption requests under the Federal Insecticide, Fungicide and Rodenticide Act (FIFRA) to allow the use of SurfaceWise2 — a product manufactured by Allied BioScience Inc - by both American Airlines and Texas-based Total Orthopedics Sports & Spine's two clinics for up to a year.
American Airlines declined to comment.
The announcement comes as airlines are struggling to convince people that it is safe to resume flying. EPA officials said the product was aimed at providing added protection in public spaces that could increase consumer confidence in resuming air travel.
EPA officials said the surface coating inactivated viruses and bacteria within two hours of application and kept working against them for up to seven days.
The EPA will allow the product's use at American Airlines airport facilities in Texas and on planes with flights originating in the state, the officials said, without providing more details. The initial application and any reapplication must occur in Texas.
Allied BioScience plans to pursue a non-emergency approval by submitting additional data to meet the EPA’s registration requirements as an antiviral surface coating. If approved, the product would become available for purchase by the public, EPA officials said.
EPA officials emphasized the product was not a replacement for routine cleaning and disinfection. Facilities must continue to get regular cleanings.
The U.S. Centers for Disease Control and Prevention has said it may be possible for a person to get COVID-19 "by touching a surface or object that has the virus on it and then touching their own mouth, nose, or possibly their eyes." But the virus is believed to be spread primarily by close contact.
(Reporting by David Shepardson and Tracy Rucinski; Editing by Peter Cooney)
((David.Shepardson@thomsonreuters.com; 2028988324;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By David Shepardson and Tracy Rucinski Aug 23 (Reuters) - The U.S. Environmental Protection Agency is set to announce on Monday it will issue an emergency exemption to the state of Texas permitting it to allow American Airlines Group Inc AAL.O to use a new surface coating that kills coronaviruses for up to seven days, sources briefed on the matter said. EPA officials said the agency would approve the emergency exemption requests under the Federal Insecticide, Fungicide and Rodenticide Act (FIFRA) to allow the use of SurfaceWise2 — a product manufactured by Allied BioScience Inc - by both American Airlines and Texas-based Total Orthopedics Sports & Spine's two clinics for up to a year. Allied BioScience plans to pursue a non-emergency approval by submitting additional data to meet the EPA’s registration requirements as an antiviral surface coating.
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By David Shepardson and Tracy Rucinski Aug 23 (Reuters) - The U.S. Environmental Protection Agency is set to announce on Monday it will issue an emergency exemption to the state of Texas permitting it to allow American Airlines Group Inc AAL.O to use a new surface coating that kills coronaviruses for up to seven days, sources briefed on the matter said. EPA officials said the agency would approve the emergency exemption requests under the Federal Insecticide, Fungicide and Rodenticide Act (FIFRA) to allow the use of SurfaceWise2 — a product manufactured by Allied BioScience Inc - by both American Airlines and Texas-based Total Orthopedics Sports & Spine's two clinics for up to a year. (Reporting by David Shepardson and Tracy Rucinski; Editing by Peter Cooney) ((David.Shepardson@thomsonreuters.com; 2028988324;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By David Shepardson and Tracy Rucinski Aug 23 (Reuters) - The U.S. Environmental Protection Agency is set to announce on Monday it will issue an emergency exemption to the state of Texas permitting it to allow American Airlines Group Inc AAL.O to use a new surface coating that kills coronaviruses for up to seven days, sources briefed on the matter said. EPA officials said the agency would approve the emergency exemption requests under the Federal Insecticide, Fungicide and Rodenticide Act (FIFRA) to allow the use of SurfaceWise2 — a product manufactured by Allied BioScience Inc - by both American Airlines and Texas-based Total Orthopedics Sports & Spine's two clinics for up to a year. The EPA will allow the product's use at American Airlines airport facilities in Texas and on planes with flights originating in the state, the officials said, without providing more details.
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By David Shepardson and Tracy Rucinski Aug 23 (Reuters) - The U.S. Environmental Protection Agency is set to announce on Monday it will issue an emergency exemption to the state of Texas permitting it to allow American Airlines Group Inc AAL.O to use a new surface coating that kills coronaviruses for up to seven days, sources briefed on the matter said. EPA officials said the agency would approve the emergency exemption requests under the Federal Insecticide, Fungicide and Rodenticide Act (FIFRA) to allow the use of SurfaceWise2 — a product manufactured by Allied BioScience Inc - by both American Airlines and Texas-based Total Orthopedics Sports & Spine's two clinics for up to a year. The EPA will allow the product's use at American Airlines airport facilities in Texas and on planes with flights originating in the state, the officials said, without providing more details.
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5383.0
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2020-08-21 00:00:00 UTC
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American Airlines To Suspend Service To 15 Markets In October
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AAL
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https://www.nasdaq.com/articles/american-airlines-to-suspend-service-to-15-markets-in-october-2020-08-21
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nan
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nan
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(RTTNews) - American Airlines Group Inc. announced its decision to suspend services to 15 markets effective October. The move reflects weak demand as well as the expiration of the air service requirements associated with the Coronavirus Aid, Relief and Economic Security or CARES Act, the company said in a statement.
The airline continues to evaluate its network and plans for additional schedule changes in the coming weeks.
The company said the current suspensions will take effect on October 7, and are only in place for the October schedule period, which runs through November 3.
American Airlines plans to release its full, updated October schedule on August 29, and updated November schedule by late-September.
American Airlines, and several other airlines had cut flight schedules and fares over the past few months as the airline industry has been hard hit amid the rapid spread of the coronavirus and the related travel restrictions.
In March, U.S. President Donald Trump signed the $2 trillion coronavirus economic stimulus bill that included $25 billion in direct aid to the airline industry. In early July, American Airlines and four other airlines signed agreements with the U.S. Department of the Treasury on the federal loan terms under the CARES Act.
In late July, while reporting financial results for the second quarter, American Airlines had said COVID-19 and the resulting shutdown of the U.S. economy caused severe disruptions to global demand for air travel. It called the quarter the most challenging in American's history.
For the company, May and June revenue trends were encouraging, however, demand weakened somewhat during July as COVID-19 cases have increased and new travel restrictions have been put into place.
The company presently expects its third-quarter system capacity to be down approximately 60 percent year-over-year.
Last week, American Airlines extended its offer to waive change fees for customers who purchase tickets for travel, until December 31, 2020 in response to lower travel demand. This means that the travelers need not pay penalties for changing the origin and destination cities.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The move reflects weak demand as well as the expiration of the air service requirements associated with the Coronavirus Aid, Relief and Economic Security or CARES Act, the company said in a statement. In March, U.S. President Donald Trump signed the $2 trillion coronavirus economic stimulus bill that included $25 billion in direct aid to the airline industry. For the company, May and June revenue trends were encouraging, however, demand weakened somewhat during July as COVID-19 cases have increased and new travel restrictions have been put into place.
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The move reflects weak demand as well as the expiration of the air service requirements associated with the Coronavirus Aid, Relief and Economic Security or CARES Act, the company said in a statement. American Airlines plans to release its full, updated October schedule on August 29, and updated November schedule by late-September. In early July, American Airlines and four other airlines signed agreements with the U.S. Department of the Treasury on the federal loan terms under the CARES Act.
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American Airlines, and several other airlines had cut flight schedules and fares over the past few months as the airline industry has been hard hit amid the rapid spread of the coronavirus and the related travel restrictions. In late July, while reporting financial results for the second quarter, American Airlines had said COVID-19 and the resulting shutdown of the U.S. economy caused severe disruptions to global demand for air travel. Last week, American Airlines extended its offer to waive change fees for customers who purchase tickets for travel, until December 31, 2020 in response to lower travel demand.
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The move reflects weak demand as well as the expiration of the air service requirements associated with the Coronavirus Aid, Relief and Economic Security or CARES Act, the company said in a statement. The company said the current suspensions will take effect on October 7, and are only in place for the October schedule period, which runs through November 3. American Airlines plans to release its full, updated October schedule on August 29, and updated November schedule by late-September.
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5384.0
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2020-08-21 00:00:00 UTC
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Pre-Market Most Active for Aug 21, 2020 : PDD, QQQ, AAPL, SQQQ, NIO, GE, AAL, TSLA, FL, NOK, RKT, BAC
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AAL
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https://www.nasdaq.com/articles/pre-market-most-active-for-aug-21-2020-%3A-pdd-qqq-aapl-sqqq-nio-ge-aal-tsla-fl-nok-rkt-bac
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nan
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nan
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The NASDAQ 100 Pre-Market Indicator is down -18.76 to 11,458.29. The total Pre-Market volume is currently 17,598,377 shares traded.
The following are the most active stocks for the pre-market session:
Pinduoduo Inc. (PDD) is -9.88 at $87.25, with 1,797,883 shares traded. GlobeNewswire Reports: Pinduoduo Announces Second Quarter 2020 Unaudited Financial Results
Invesco QQQ Trust, Series 1 (QQQ) is -0.9 at $279.03, with 813,927 shares traded., following a 52-week high recorded in prior regular session.
Apple Inc. (AAPL) is +2.77 at $475.87, with 678,751 shares traded. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2020. The consensus EPS forecast is $2.73. , following a 52-week high recorded in prior regular session.
ProShares UltraPro Short QQQ (SQQQ) is +0.2598 at $25.32, with 674,242 shares traded., following a 52-week high recorded in prior regular session.
NIO Inc. (NIO) is -0.21 at $13.57, with 647,275 shares traded. NIO's current last sale is 104.38% of the target price of $13.
General Electric Company (GE) is -0.0201 at $6.25, with 391,998 shares traded. As reported by Zacks, the current mean recommendation for GE is in the "buy range".
American Airlines Group, Inc. (AAL) is -0.11 at $12.39, with 384,721 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Mar 2021. The consensus EPS forecast is $-1.62. AAL's current last sale is 103.25% of the target price of $12.
Tesla, Inc. (TSLA) is +23.85 at $2,025.68, with 382,710 shares traded. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2020. The consensus EPS forecast is $0.68. , following a 52-week high recorded in prior regular session.
Foot Locker, Inc. (FL) is +1.3 at $28.49, with 351,088 shares traded. Over the last four weeks they have had 8 up revisions for the earnings forecast, for the fiscal quarter ending Jul 2020. The consensus EPS forecast is $0.69. PR Newswire Reports: Foot Locker, Inc. Reports 2020 Second Quarter Results; Board Of Directors Reinstates Quarterly Dividend Program
Nokia Corporation (NOK) is -0.13 at $4.92, with 310,733 shares traded. As reported by Zacks, the current mean recommendation for NOK is in the "buy range".
Rocket Companies, Inc. (RKT) is +0.17 at $23.96, with 256,993 shares traded. RKT's current last sale is 133.11% of the target price of $18.
Bank of America Corporation (BAC) is -0.13 at $24.97, with 256,898 shares traded. BAC's current last sale is 92.48% of the target price of $27.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines Group, Inc. (AAL) is -0.11 at $12.39, with 384,721 shares traded. AAL's current last sale is 103.25% of the target price of $12. GlobeNewswire Reports: Pinduoduo Announces Second Quarter 2020 Unaudited Financial Results
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Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2020. American Airlines Group, Inc. (AAL) is -0.11 at $12.39, with 384,721 shares traded. AAL's current last sale is 103.25% of the target price of $12.
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American Airlines Group, Inc. (AAL) is -0.11 at $12.39, with 384,721 shares traded. AAL's current last sale is 103.25% of the target price of $12. Invesco QQQ Trust, Series 1 (QQQ) is -0.9 at $279.03, with 813,927 shares traded., following a 52-week high recorded in prior regular session.
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American Airlines Group, Inc. (AAL) is -0.11 at $12.39, with 384,721 shares traded. AAL's current last sale is 103.25% of the target price of $12. Pinduoduo Inc. (PDD) is -9.88 at $87.25, with 1,797,883 shares traded.
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5385.0
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2020-08-20 00:00:00 UTC
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Colombian coal mine Cerrejon's largest union votes for strike
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AAL
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https://www.nasdaq.com/articles/colombian-coal-mine-cerrejons-largest-union-votes-for-strike-2020-08-20
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nan
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nan
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BOGOTA, Aug 20 (Reuters) - The largest workers union for Colombian coal mine Cerrejon on Thursday voted in support of strike action after contract negotiations between the two parties collapsed, union Sintracarbon said.
Some 99% of votes were cast in favor of strike action, the union said, after extended talks over contract negotiations ended without agreement almost two weeks ago.
"After 8 days of voting and with a forceful 99.03% of votes in favor of a strike, the workers of Cerrejon have responded to the stingy attitude of the company, which has tried to diminish conventional benefits and impose the well-named Death Shift," the union said in a statement on its website, referring to changes to working schedules.
(Reporting by Luis Jaime Acosta, Julia Symmes Cobb and Oliver Griffin; Editing by Sandra Maler)
((Oliver.Griffin@thomsonreuters.com; +57 304-583-8931;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Some 99% of votes were cast in favor of strike action, the union said, after extended talks over contract negotiations ended without agreement almost two weeks ago. "After 8 days of voting and with a forceful 99.03% of votes in favor of a strike, the workers of Cerrejon have responded to the stingy attitude of the company, which has tried to diminish conventional benefits and impose the well-named Death Shift," the union said in a statement on its website, referring to changes to working schedules. (Reporting by Luis Jaime Acosta, Julia Symmes Cobb and Oliver Griffin; Editing by Sandra Maler) ((Oliver.Griffin@thomsonreuters.com; +57 304-583-8931;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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BOGOTA, Aug 20 (Reuters) - The largest workers union for Colombian coal mine Cerrejon on Thursday voted in support of strike action after contract negotiations between the two parties collapsed, union Sintracarbon said. Some 99% of votes were cast in favor of strike action, the union said, after extended talks over contract negotiations ended without agreement almost two weeks ago. "After 8 days of voting and with a forceful 99.03% of votes in favor of a strike, the workers of Cerrejon have responded to the stingy attitude of the company, which has tried to diminish conventional benefits and impose the well-named Death Shift," the union said in a statement on its website, referring to changes to working schedules.
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BOGOTA, Aug 20 (Reuters) - The largest workers union for Colombian coal mine Cerrejon on Thursday voted in support of strike action after contract negotiations between the two parties collapsed, union Sintracarbon said. "After 8 days of voting and with a forceful 99.03% of votes in favor of a strike, the workers of Cerrejon have responded to the stingy attitude of the company, which has tried to diminish conventional benefits and impose the well-named Death Shift," the union said in a statement on its website, referring to changes to working schedules. (Reporting by Luis Jaime Acosta, Julia Symmes Cobb and Oliver Griffin; Editing by Sandra Maler) ((Oliver.Griffin@thomsonreuters.com; +57 304-583-8931;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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BOGOTA, Aug 20 (Reuters) - The largest workers union for Colombian coal mine Cerrejon on Thursday voted in support of strike action after contract negotiations between the two parties collapsed, union Sintracarbon said. Some 99% of votes were cast in favor of strike action, the union said, after extended talks over contract negotiations ended without agreement almost two weeks ago. "After 8 days of voting and with a forceful 99.03% of votes in favor of a strike, the workers of Cerrejon have responded to the stingy attitude of the company, which has tried to diminish conventional benefits and impose the well-named Death Shift," the union said in a statement on its website, referring to changes to working schedules.
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5386.0
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2020-08-20 00:00:00 UTC
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Colombian coal mine Cerrejon's largest union votes to strike
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AAL
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https://www.nasdaq.com/articles/colombian-coal-mine-cerrejons-largest-union-votes-to-strike-2020-08-20
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nan
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nan
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Adds context, Cerrejon comment
BOGOTA, Aug 20 (Reuters) - The largest workers union at Colombian coal mine Cerrejon said on Thursday its members voted overwhelmingly in support of strike action after contract negotiations between the two parties collapsed.
Some 99% of votes were cast in favor of strike action, the Sintracarbon union said, after extended talks over contract negotiations ended without agreement almost two weeks ago.
"After 8 days of voting and with a forceful 99.03% of votes in favor of a strike, the workers of Cerrejon have responded to the stingy attitude of the company, which has tried to diminish conventional benefits and impose the well-named Death Shift," the union said in a statement on its website, referring to changes to working schedules.
A spokesperson for Cerrejon, which is owned equally by BHP Group BHP.AX, Anglo American AAL.L and Glencore GLEN.L, was not immediately able to comment.
Sintracarbon had demanded a 6% salary increase in addition to health, education and housing benefits. Cerrejon offered an increase equal to inflation for 2020 and 2021.
Colombia had 3.80% inflation in 2019. The central bank expects inflation to end this year between 1% and 2%.
The union accuses Cerrejon of looking to cut costs by freezing, reducing and eliminating employee benefits.
Cerrejon employs more than 5,500 workers, including 4,600 union members.
Sintracarbon had previously threatened job action this year. In March, it pulled back from launching a pre-approved strike and withdrew demands regarding pay raises and other benefits.
The last strike at Cerrejon in February 2013 lasted 32 days.
Last year, coal prices fell to an average of $51.40 per tonne from $82.50 in the previous year, according to Colombia's energy ministry.
The Andean country is the world's fifth-largest coal exporter. The fuel is its second top source of foreign exchange after oil.
Sintracarbon now has 10 working days to begin the strike.
(Reporting by Luis Jaime Acosta, Julia Symmes Cobb and Oliver Griffin; Editing by Sandra Maler and Aurora Ellis)
((Oliver.Griffin@thomsonreuters.com; +57 304-583-8931))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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A spokesperson for Cerrejon, which is owned equally by BHP Group BHP.AX, Anglo American AAL.L and Glencore GLEN.L, was not immediately able to comment. Some 99% of votes were cast in favor of strike action, the Sintracarbon union said, after extended talks over contract negotiations ended without agreement almost two weeks ago. In March, it pulled back from launching a pre-approved strike and withdrew demands regarding pay raises and other benefits.
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A spokesperson for Cerrejon, which is owned equally by BHP Group BHP.AX, Anglo American AAL.L and Glencore GLEN.L, was not immediately able to comment. Adds context, Cerrejon comment BOGOTA, Aug 20 (Reuters) - The largest workers union at Colombian coal mine Cerrejon said on Thursday its members voted overwhelmingly in support of strike action after contract negotiations between the two parties collapsed. Some 99% of votes were cast in favor of strike action, the Sintracarbon union said, after extended talks over contract negotiations ended without agreement almost two weeks ago.
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A spokesperson for Cerrejon, which is owned equally by BHP Group BHP.AX, Anglo American AAL.L and Glencore GLEN.L, was not immediately able to comment. Adds context, Cerrejon comment BOGOTA, Aug 20 (Reuters) - The largest workers union at Colombian coal mine Cerrejon said on Thursday its members voted overwhelmingly in support of strike action after contract negotiations between the two parties collapsed. Some 99% of votes were cast in favor of strike action, the Sintracarbon union said, after extended talks over contract negotiations ended without agreement almost two weeks ago.
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A spokesperson for Cerrejon, which is owned equally by BHP Group BHP.AX, Anglo American AAL.L and Glencore GLEN.L, was not immediately able to comment. "After 8 days of voting and with a forceful 99.03% of votes in favor of a strike, the workers of Cerrejon have responded to the stingy attitude of the company, which has tried to diminish conventional benefits and impose the well-named Death Shift," the union said in a statement on its website, referring to changes to working schedules. Cerrejon offered an increase equal to inflation for 2020 and 2021.
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5387.0
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2020-08-20 00:00:00 UTC
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American Airlines will suspend flights to 15 U.S. cities amid aid debate
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AAL
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https://www.nasdaq.com/articles/american-airlines-will-suspend-flights-to-15-u.s.-cities-amid-aid-debate-2020-08-20
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nan
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nan
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By David Shepardson
WASHINGTON, Aug 20 (Reuters) - American Airlines Group Inc AAL.O said Thursday it plans to suspend flights to 15 U.S. airports in October as travel demand remains low as a result of the coronavirus pandemic.
Congress has been weighing for weeks whether to grant U.S. airlines another $25 billion in payroll assistance that would keep tens of thousands of airline workers on the job for another six months and extend minimum service requirements.
American said it will cancel just over 700 flights in October to and from those 15 airports but warned it could make additional cuts or could reconsider if Congress provides additional assistance.
"This is the first step as American continues to evaluate its network and plans for additional schedule changes in the coming weeks," the airline said.
The debate over airline assistance has been stalled as Congress has struggled to reach agreement on a broader coronavirus assistance package.
Some lawmakers think Congress and the White House may not reach a deal until September.
Major U.S. airlines that received portions of $25 billion in payroll assistance were required by the U.S. Transportation Department to maintain minimum flights through Sept. 30, but the government could opt to extend those requirements. American received $5.8 billion in payroll assistance.
Several airlines have been privately warning lawmakers they would be forced to suspend service to some smaller airports without assistance,
American will halt flights to Del Rio, Texas; Dubuque, Iowa; Florence, South Carolina; Greenville, North Carolina; Huntington, West Virginia; Joplin, Missouri; Kalamazoo-Battle Creek, Michigan; Lake Charles, Louisiana; New Haven, Connecticut; New Windsor, New York; Roswell, New Mexico; Sioux City, Iowa; Springfield, Illinois; Stillwater, Oklahoma, and Williamsport, Pennsylvania starting Oct. 7.
Travel and transportation sectors, including hotels, restaurants, performance venues, public transit and passenger railroad Amtrak, are seeking significant government assistance.
The U.S. Travel Association said Wednesday that travel "businesses and workers cannot wait until September or until after the election. Congress must come together immediately to pass meaningful legislation."
(Reporting by David Shepardson; Editing by Steve Orlofsky)
((David.Shepardson@thomsonreuters.com; 2028988324;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By David Shepardson WASHINGTON, Aug 20 (Reuters) - American Airlines Group Inc AAL.O said Thursday it plans to suspend flights to 15 U.S. airports in October as travel demand remains low as a result of the coronavirus pandemic. Several airlines have been privately warning lawmakers they would be forced to suspend service to some smaller airports without assistance, American will halt flights to Del Rio, Texas; Dubuque, Iowa; Florence, South Carolina; Greenville, North Carolina; Huntington, West Virginia; Joplin, Missouri; Kalamazoo-Battle Creek, Michigan; Lake Charles, Louisiana; New Haven, Connecticut; New Windsor, New York; Roswell, New Mexico; Sioux City, Iowa; Springfield, Illinois; Stillwater, Oklahoma, and Williamsport, Pennsylvania starting Oct. 7. Travel and transportation sectors, including hotels, restaurants, performance venues, public transit and passenger railroad Amtrak, are seeking significant government assistance.
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By David Shepardson WASHINGTON, Aug 20 (Reuters) - American Airlines Group Inc AAL.O said Thursday it plans to suspend flights to 15 U.S. airports in October as travel demand remains low as a result of the coronavirus pandemic. Congress has been weighing for weeks whether to grant U.S. airlines another $25 billion in payroll assistance that would keep tens of thousands of airline workers on the job for another six months and extend minimum service requirements. Major U.S. airlines that received portions of $25 billion in payroll assistance were required by the U.S. Transportation Department to maintain minimum flights through Sept. 30, but the government could opt to extend those requirements.
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By David Shepardson WASHINGTON, Aug 20 (Reuters) - American Airlines Group Inc AAL.O said Thursday it plans to suspend flights to 15 U.S. airports in October as travel demand remains low as a result of the coronavirus pandemic. Congress has been weighing for weeks whether to grant U.S. airlines another $25 billion in payroll assistance that would keep tens of thousands of airline workers on the job for another six months and extend minimum service requirements. Major U.S. airlines that received portions of $25 billion in payroll assistance were required by the U.S. Transportation Department to maintain minimum flights through Sept. 30, but the government could opt to extend those requirements.
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By David Shepardson WASHINGTON, Aug 20 (Reuters) - American Airlines Group Inc AAL.O said Thursday it plans to suspend flights to 15 U.S. airports in October as travel demand remains low as a result of the coronavirus pandemic. Congress has been weighing for weeks whether to grant U.S. airlines another $25 billion in payroll assistance that would keep tens of thousands of airline workers on the job for another six months and extend minimum service requirements. American said it will cancel just over 700 flights in October to and from those 15 airports but warned it could make additional cuts or could reconsider if Congress provides additional assistance.
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5388.0
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2020-08-20 00:00:00 UTC
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Consumer Sector Update for 08/20/2020: AAL,AESE,EL
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AAL
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https://www.nasdaq.com/articles/consumer-sector-update-for-08-20-2020%3A-aalaeseel-2020-08-20
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nan
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nan
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Consumer stocks continue to drift lower on Thursday, with the SPDR Consumer Staples Select Sector ETF falling about 0.4% while the SPDR Consumer Discretionary Select Sector ETF was declining about 0.1%.
In company news, American Airlines Group (AAL) fell slightly more than 1% on Thursday after saying it will suspend service to 15 US cities beginning Oct. 7 following the expiration of air-service requirements included in pandemic relief legislation adopted by Congress earlier this year. Among the markets to be cut due to slow passenger traffic are Del Rio, Texas; Lake Charles, La.; Roswell, N.M., Springfield, Ill.; and Sioux City, in Iowa.
Estee Lauder (EL) fell 7% after the cosmetic company disclosed plans to cut between 1,500 to 2,000 jobs and close up to 15% of its stores and resulting in $400 million to $500 million in restructuring charges. The company also reported a non-GAAP loss of $0.53 per share for its fiscal Q4 ended June 30, reversing a $0.64 per share adjusted profit during the year-ago period and missing the Capital IQ consensus expecting a $0.17 per share loss, excluding one-time items.
Allied Esports Entertainment (AESE) climbed 3% on Thursday after announcing a multi-year licensing agreement with e-sports data provider GRID to monetize data and video rights to its Counter-Strike: Global Offensive Legend Series events and delivering real-time, official data to regulated bookmakers and sports betting platforms.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In company news, American Airlines Group (AAL) fell slightly more than 1% on Thursday after saying it will suspend service to 15 US cities beginning Oct. 7 following the expiration of air-service requirements included in pandemic relief legislation adopted by Congress earlier this year. Among the markets to be cut due to slow passenger traffic are Del Rio, Texas; Lake Charles, La. Allied Esports Entertainment (AESE) climbed 3% on Thursday after announcing a multi-year licensing agreement with e-sports data provider GRID to monetize data and video rights to its Counter-Strike: Global Offensive Legend Series events and delivering real-time, official data to regulated bookmakers and sports betting platforms.
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In company news, American Airlines Group (AAL) fell slightly more than 1% on Thursday after saying it will suspend service to 15 US cities beginning Oct. 7 following the expiration of air-service requirements included in pandemic relief legislation adopted by Congress earlier this year. Consumer stocks continue to drift lower on Thursday, with the SPDR Consumer Staples Select Sector ETF falling about 0.4% while the SPDR Consumer Discretionary Select Sector ETF was declining about 0.1%. Estee Lauder (EL) fell 7% after the cosmetic company disclosed plans to cut between 1,500 to 2,000 jobs and close up to 15% of its stores and resulting in $400 million to $500 million in restructuring charges.
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In company news, American Airlines Group (AAL) fell slightly more than 1% on Thursday after saying it will suspend service to 15 US cities beginning Oct. 7 following the expiration of air-service requirements included in pandemic relief legislation adopted by Congress earlier this year. Consumer stocks continue to drift lower on Thursday, with the SPDR Consumer Staples Select Sector ETF falling about 0.4% while the SPDR Consumer Discretionary Select Sector ETF was declining about 0.1%. The company also reported a non-GAAP loss of $0.53 per share for its fiscal Q4 ended June 30, reversing a $0.64 per share adjusted profit during the year-ago period and missing the Capital IQ consensus expecting a $0.17 per share loss, excluding one-time items.
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In company news, American Airlines Group (AAL) fell slightly more than 1% on Thursday after saying it will suspend service to 15 US cities beginning Oct. 7 following the expiration of air-service requirements included in pandemic relief legislation adopted by Congress earlier this year. Consumer stocks continue to drift lower on Thursday, with the SPDR Consumer Staples Select Sector ETF falling about 0.4% while the SPDR Consumer Discretionary Select Sector ETF was declining about 0.1%. Among the markets to be cut due to slow passenger traffic are Del Rio, Texas; Lake Charles, La.
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5389.0
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2020-08-20 00:00:00 UTC
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Stock Markets Open Mixed as American Cuts Flights, Goodyear Deals With Boycott
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AAL
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https://www.nasdaq.com/articles/stock-markets-open-mixed-as-american-cuts-flights-goodyear-deals-with-boycott-2020-08-20
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nan
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nan
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The stock market has shown time and time again that it's resilient even in the face of significant uncertainty. With the COVID-19 pandemic and its economic impact continuing to make the future unpredictable, you'd think major benchmarks would be under more pressure. Yet after a modest decline Wednesday, indexes bounced back from early losses Thursday morning to hover near the unchanged level. Just before 11 a.m. EDT, the Dow Jones Industrial Average (DJINDICES: ^DJI) was down 18 points to 27,675. However, the S&P 500 (SNPINDEX: ^GSPC) managed to rise 2 points to 3,377, and the Nasdaq Composite (NASDAQINDEX: ^IXIC) picked up 57 points to 11,204.
There wasn't a whole lot of market-moving news Thursday, but a few companies did garner some attention. American Airlines Group (NASDAQ: AAL) is having to deal with not knowing what will happen with federal aid after the end of September, and some of its actions aren't inspiring confidence among investors. Meanwhile, Goodyear Tire & Rubber (NASDAQ: GT) is doing what it can to offset calls for a boycott of its tires.
What the fall could bring for air travelers
Shares of American Airlines Group fell 2%. Investors have wondered what the air carrier would do after its commitments under the federal aid packages it received end at the beginning of October, and today, American gave them a glimpse of what to expect.
American said that it would suspend service to 15 small U.S. markets beginning Oct. 7, assuming that federal aid doesn't get renewed in an upcoming stimulus package. Affected cities include Dubuque, Roswell, and Little League World Series mecca Williamsport. For now, the suspensions will last just four weeks through Nov. 3, but extensions could easily follow.
Yet the airline left the door open to more extensive cuts. With cash burn rates still at problematic levels, it's likely that American will have to keep evaluating where it can make additional reductions in service to match up with its revenue.
American's move puts some pressure on Washington to move forward with stimulus package negotiations. There's bipartisan backing for an extension of airline support through next March, but there's no telling whether Congress will get its act together and pass a bill to help not only American but all airline stocks.
Image source: Goodyear Tire & Rubber.
Bad times for Goodyear
Shares of Goodyear managed to limit losses to just a fraction of a percent. Nevertheless, the tire maker remains in the spotlight for comments made from the White House.
On Wednesday, President Trump tweeted that people should boycott Goodyear tires, seemingly based on his understanding of a company policy regarding political attire. Goodyear responded with an explanation for its policy on political campaigning, explaining that to respect the diverse views of its tens of thousands of employees, the company asks workers not to do any sort of campaigning in the workplace.
Goodyear has already faced challenges during the COVID-19 pandemic. Second-quarter revenue plunged 41% from year-earlier levels as industry volumes fell precipitously. Huge net losses reversed gains from the same period in 2019. Since then, all of its factories have resumed production and not faced any coronavirus-related disruptions, but Goodyear expects lower inventory levels to prevail throughout the second half of the year.
Investors seem to be largely shrugging off the incident as a non-event, but Goodyear is still taking it seriously. With so many obstacles to overcome already, the last thing Goodyear needs is an unnecessary headwind from Washington.
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Dan Caplinger 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.
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American Airlines Group (NASDAQ: AAL) is having to deal with not knowing what will happen with federal aid after the end of September, and some of its actions aren't inspiring confidence among investors. Investors have wondered what the air carrier would do after its commitments under the federal aid packages it received end at the beginning of October, and today, American gave them a glimpse of what to expect. On Wednesday, President Trump tweeted that people should boycott Goodyear tires, seemingly based on his understanding of a company policy regarding political attire.
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American Airlines Group (NASDAQ: AAL) is having to deal with not knowing what will happen with federal aid after the end of September, and some of its actions aren't inspiring confidence among investors. What the fall could bring for air travelers Shares of American Airlines Group fell 2%. * David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Goodyear Tire & Rubber wasn't one of them!
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American Airlines Group (NASDAQ: AAL) is having to deal with not knowing what will happen with federal aid after the end of September, and some of its actions aren't inspiring confidence among investors. 10 stocks we like better than Goodyear Tire & Rubber 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 Goodyear Tire & Rubber wasn't one of them!
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American Airlines Group (NASDAQ: AAL) is having to deal with not knowing what will happen with federal aid after the end of September, and some of its actions aren't inspiring confidence among investors. What the fall could bring for air travelers Shares of American Airlines Group fell 2%. Goodyear has already faced challenges during the COVID-19 pandemic.
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5390.0
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2020-08-20 00:00:00 UTC
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American Airlines will suspend flights to 15 U.S. cities amid aid debate
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AAL
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https://www.nasdaq.com/articles/american-airlines-will-suspend-flights-to-15-u.s.-cities-amid-aid-debate-2020-08-20-0
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nan
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nan
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By David Shepardson
WASHINGTON, Aug 20 (Reuters) - American Airlines Group Inc AAL.O said on Thursday it plans to suspend flights to 15 U.S. airports in October as travel demand remains low as a result of the coronavirus pandemic.
Congress has been weighing for weeks whether to grant U.S. airlines another $25 billion in payroll assistance that would keep tens of thousands of airline workers on the job for another six months and extend minimum service requirements.
American shares were off 0.5% in mid-day trading.
American said it will cancel just over 700 flights in October to and from those 15 airports but warned it could make additional cuts or could reconsider if Congress provides more assistance.
"This is the first step as American continues to evaluate its network and plans for additional schedule changes in the coming weeks," the airline said.
The debate over airline assistance has stalled as Congress has struggled to reach agreement on a broader coronavirus assistance package.
Some lawmakers think Congress and the White House may not reach a deal until September.
Major U.S. airlines that received portions of $25 billion in payroll assistance were required by the U.S. Transportation Department to maintain minimum flights through Sept. 30, but the government could opt to extend those requirements. American received $5.8 billion in payroll assistance.
Several airlines have been privately warning lawmakers they would be forced to suspend service to some smaller airports without assistance.
American will halt flights to Del Rio, Texas; Dubuque, Iowa; Florence, South Carolina; Greenville, North Carolina; Huntington, West Virginia; Joplin, Missouri; Kalamazoo-Battle Creek, Michigan; Lake Charles, Louisiana; New Haven, Connecticut; New Windsor, New York; Roswell, New Mexico; Sioux City, Iowa; Springfield, Illinois; Stillwater, Oklahoma, and Williamsport, Pennsylvania starting Oct. 7.
The Transportation Department said Thursday it will "monitor ongoing access by the traveling public to the national air transportation system."
Travel and transportation sectors, including hotels, restaurants, performance venues, public transit and passenger railroad Amtrak, are seeking significant government assistance.
The U.S. Travel Association said Wednesday that travel "businesses and workers cannot wait until September or until after the election. Congress must come together immediately to pass meaningful legislation."
(Reporting by David Shepardson; Editing by Steve Orlofsky and Aurora Ellis)
((David.Shepardson@thomsonreuters.com; 2028988324;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By David Shepardson WASHINGTON, Aug 20 (Reuters) - American Airlines Group Inc AAL.O said on Thursday it plans to suspend flights to 15 U.S. airports in October as travel demand remains low as a result of the coronavirus pandemic. American will halt flights to Del Rio, Texas; Dubuque, Iowa; Florence, South Carolina; Greenville, North Carolina; Huntington, West Virginia; Joplin, Missouri; Kalamazoo-Battle Creek, Michigan; Lake Charles, Louisiana; New Haven, Connecticut; New Windsor, New York; Roswell, New Mexico; Sioux City, Iowa; Springfield, Illinois; Stillwater, Oklahoma, and Williamsport, Pennsylvania starting Oct. 7. Travel and transportation sectors, including hotels, restaurants, performance venues, public transit and passenger railroad Amtrak, are seeking significant government assistance.
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By David Shepardson WASHINGTON, Aug 20 (Reuters) - American Airlines Group Inc AAL.O said on Thursday it plans to suspend flights to 15 U.S. airports in October as travel demand remains low as a result of the coronavirus pandemic. Major U.S. airlines that received portions of $25 billion in payroll assistance were required by the U.S. Transportation Department to maintain minimum flights through Sept. 30, but the government could opt to extend those requirements. American received $5.8 billion in payroll assistance.
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By David Shepardson WASHINGTON, Aug 20 (Reuters) - American Airlines Group Inc AAL.O said on Thursday it plans to suspend flights to 15 U.S. airports in October as travel demand remains low as a result of the coronavirus pandemic. Congress has been weighing for weeks whether to grant U.S. airlines another $25 billion in payroll assistance that would keep tens of thousands of airline workers on the job for another six months and extend minimum service requirements. Major U.S. airlines that received portions of $25 billion in payroll assistance were required by the U.S. Transportation Department to maintain minimum flights through Sept. 30, but the government could opt to extend those requirements.
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By David Shepardson WASHINGTON, Aug 20 (Reuters) - American Airlines Group Inc AAL.O said on Thursday it plans to suspend flights to 15 U.S. airports in October as travel demand remains low as a result of the coronavirus pandemic. American said it will cancel just over 700 flights in October to and from those 15 airports but warned it could make additional cuts or could reconsider if Congress provides more assistance. Some lawmakers think Congress and the White House may not reach a deal until September.
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5391.0
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2020-08-20 00:00:00 UTC
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Wall Street slips as jobless claims climb back to 1 million
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AAL
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https://www.nasdaq.com/articles/wall-street-slips-as-jobless-claims-climb-back-to-1-million-2020-08-20
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nan
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nan
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For a live blog on the U.S. stock market, click LIVE/ or type LIVE/ in a news window
Weekly jobless claims back over 1 million
Nvidia dips as data center business results disappoint
L Brands rises after posting a surprise profit
Intel jumps after announcing $10-bln share buyback plan
Indexes: Dow falls 0.28%, S&P down 0.11%, Nasdaq up 0.34%
Updates to market open
By Medha Singh
Aug 20 (Reuters) - The S&P 500 and the Dow slipped further on Thursday after weekly jobless claims rose unexpectedly back above the 1 million mark last week, lending weight to the Federal Reserve's view of a difficult road to economic recovery.
The benchmark index retreated from a record level a day earlier after minutes from the Fed's latest policy meeting showed the labor market's swift rebound in May and June had likely slowed and that policymakers would stick with aggressive stimulus measures for a much longer period.
The number of Americans filing for a new claim for unemployment benefits rose to 1.106 million in the week ended Aug. 15 after slipping below the 1 million level for the first time since the start of the pandemic, in the prior week.
A separate report from the Philadelphia Fed showed business conditions index fell more than expected to 17.2 points in August from 24.1 points in July.
"In the short term, if the jobless claim numbers come out worse than expected, I could see that pushing Congress to get another stimulus package going, maybe put more priority," said Jeffrey Corliss, managing director and partner at Connecticut-based RDM Financial Group at Hightower Securities LLC.
"The Fed minutes brought a reality check that they're seeing things out there (that) they're concerned about."
Economically sensitive financial .SPSY and energy .SPNYsectors posted the biggest declines among major S&P sectors. Real estate .SPLRCR, technology .SPLRCT and communications services .SPLRCL outperformed.
Despite signs that parts of the economy were still far away from pre-pandemic levels, the benchmark S&P 500 index completed its fastest recovery from a bear market this week, joining the Nasdaq in scaling new peaks.
The Dow, however, is more than 6% below its February high.
Airline stocks took a hit, with the S&P 1500 airlines index .SPCOMAIR dropping 2.4% after American Airlines Group Inc AAL.O revealed plans to suspend flights to 15 U.S. airports in October as travel demand remains low.
At 10:08 a.m. ET, the Dow Jones Industrial Average .DJI was down 78.78 points, or 0.28%, at 27,614.10 and the S&P 500 .SPX was down 3.68 points, or 0.11%, at 3,371.17. The Nasdaq Composite .IXIC was up 37.47 points, or 0.34%, at 11,183.93.
Nvidia Corp NVDA.O slipped 0.2% after results from the data center business of the rising semiconductor industry star disappointed some investors.
Intel Corp INTC.O rose 2.2% after announcing a $10 billion share buyback plan.
L Brands Inc LB.N rose 7% after reporting a surprise quarterly profit, boosted by strong demand for Bath & Body Works' products as well as higher online sales of Victoria's Secret lingerie.
Declining issues outnumbered advancers for a 3.33-to-1 ratio on the NYSE and for a 3.10-to-1 ratio on the Nasdaq.
The S&P index recorded four new 52-week highs and no new low, while the Nasdaq recorded 16 new highs and 13 new lows.
(Reporting by Medha Singh and Sruthi Shankar in Bengaluru; Editing by Uttaresh.V and Anil D'Silva)
((Medha.Singh@thomsonreuters.com; within U.S. +1646 223 8780, outside U.S. +91 80 6749 1130; Twitter: https://twitter.com/medhasinghs))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Airline stocks took a hit, with the S&P 1500 airlines index .SPCOMAIR dropping 2.4% after American Airlines Group Inc AAL.O revealed plans to suspend flights to 15 U.S. airports in October as travel demand remains low. The benchmark index retreated from a record level a day earlier after minutes from the Fed's latest policy meeting showed the labor market's swift rebound in May and June had likely slowed and that policymakers would stick with aggressive stimulus measures for a much longer period. "In the short term, if the jobless claim numbers come out worse than expected, I could see that pushing Congress to get another stimulus package going, maybe put more priority," said Jeffrey Corliss, managing director and partner at Connecticut-based RDM Financial Group at Hightower Securities LLC.
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Airline stocks took a hit, with the S&P 1500 airlines index .SPCOMAIR dropping 2.4% after American Airlines Group Inc AAL.O revealed plans to suspend flights to 15 U.S. airports in October as travel demand remains low. For a live blog on the U.S. stock market, click LIVE/ or type LIVE/ in a news window Weekly jobless claims back over 1 million Nvidia dips as data center business results disappoint L Brands rises after posting a surprise profit Intel jumps after announcing $10-bln share buyback plan Indexes: Dow falls 0.28%, S&P down 0.11%, Nasdaq up 0.34% Updates to market open By Medha Singh Aug 20 (Reuters) - The S&P 500 and the Dow slipped further on Thursday after weekly jobless claims rose unexpectedly back above the 1 million mark last week, lending weight to the Federal Reserve's view of a difficult road to economic recovery. Nvidia Corp NVDA.O slipped 0.2% after results from the data center business of the rising semiconductor industry star disappointed some investors.
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Airline stocks took a hit, with the S&P 1500 airlines index .SPCOMAIR dropping 2.4% after American Airlines Group Inc AAL.O revealed plans to suspend flights to 15 U.S. airports in October as travel demand remains low. For a live blog on the U.S. stock market, click LIVE/ or type LIVE/ in a news window Weekly jobless claims back over 1 million Nvidia dips as data center business results disappoint L Brands rises after posting a surprise profit Intel jumps after announcing $10-bln share buyback plan Indexes: Dow falls 0.28%, S&P down 0.11%, Nasdaq up 0.34% Updates to market open By Medha Singh Aug 20 (Reuters) - The S&P 500 and the Dow slipped further on Thursday after weekly jobless claims rose unexpectedly back above the 1 million mark last week, lending weight to the Federal Reserve's view of a difficult road to economic recovery. A separate report from the Philadelphia Fed showed business conditions index fell more than expected to 17.2 points in August from 24.1 points in July.
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Airline stocks took a hit, with the S&P 1500 airlines index .SPCOMAIR dropping 2.4% after American Airlines Group Inc AAL.O revealed plans to suspend flights to 15 U.S. airports in October as travel demand remains low. For a live blog on the U.S. stock market, click LIVE/ or type LIVE/ in a news window Weekly jobless claims back over 1 million Nvidia dips as data center business results disappoint L Brands rises after posting a surprise profit Intel jumps after announcing $10-bln share buyback plan Indexes: Dow falls 0.28%, S&P down 0.11%, Nasdaq up 0.34% Updates to market open By Medha Singh Aug 20 (Reuters) - The S&P 500 and the Dow slipped further on Thursday after weekly jobless claims rose unexpectedly back above the 1 million mark last week, lending weight to the Federal Reserve's view of a difficult road to economic recovery. The benchmark index retreated from a record level a day earlier after minutes from the Fed's latest policy meeting showed the labor market's swift rebound in May and June had likely slowed and that policymakers would stick with aggressive stimulus measures for a much longer period.
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5392.0
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2020-08-20 00:00:00 UTC
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Pre-Market Most Active for Aug 20, 2020 : BABA, AVTR, NIO, INTC, GE, CVAC, AAL, QQQ, SQQQ, YNDX, BJ, RKT
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AAL
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https://www.nasdaq.com/articles/pre-market-most-active-for-aug-20-2020-%3A-baba-avtr-nio-intc-ge-cvac-aal-qqq-sqqq-yndx-bj
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nan
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nan
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The NASDAQ 100 Pre-Market Indicator is down -4.7 to 11,313.94. The total Pre-Market volume is currently 11,143,948 shares traded.
The following are the most active stocks for the pre-market session:
Alibaba Group Holding Limited (BABA) is -2.19 at $258.40, with 1,451,599 shares traded. Business Wire Reports: Alibaba Group Announces June Quarter 2020 Results
Avantor, Inc. (AVTR) is -0.7 at $20.15, with 1,043,842 shares traded. Over the last four weeks they have had 9 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2020. The consensus EPS forecast is $0.21. As reported by Zacks, the current mean recommendation for AVTR is in the "buy range".
NIO Inc. (NIO) is +0.06 at $14.12, with 944,192 shares traded. NIO's current last sale is 108.62% of the target price of $13.
Intel Corporation (INTC) is +1.41 at $49.74, with 881,936 shares traded. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2020. The consensus EPS forecast is $1.07. INTC's current last sale is 85.76% of the target price of $58.
General Electric Company (GE) is -0.02 at $6.36, with 623,947 shares traded. As reported by Zacks, the current mean recommendation for GE is in the "buy range".
CureVac N.V. (CVAC) is +7.98 at $64.88, with 606,240 shares traded.
American Airlines Group, Inc. (AAL) is -0.12 at $12.56, with 414,236 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Mar 2021. The consensus EPS forecast is $-1.62. AAL's current last sale is 104.67% of the target price of $12.
Invesco QQQ Trust, Series 1 (QQQ) is -0.05 at $276.05, with 351,519 shares traded. This represents a 67.37% increase from its 52 Week Low.
ProShares UltraPro Short QQQ (SQQQ) is +0.02 at $26.18, with 326,733 shares traded. This represents a 3.31% increase from its 52 Week Low.
Yandex N.V. (YNDX) is +1.25 at $63.71, with 318,032 shares traded., following a 52-week high recorded in prior regular session.
BJ's Wholesale Club Holdings, Inc. (BJ) is +0.9 at $44.30, with 284,627 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Jul 2020. The consensus EPS forecast is $0.6. Business Wire Reports: BJ’s Wholesale Club Holdings, Inc. Announces Record Second Quarter Fiscal 2020 Results
Rocket Companies, Inc. (RKT) is +0.83 at $22.23, with 283,150 shares traded. RKT's current last sale is 123.5% of the target price of $18.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines Group, Inc. (AAL) is -0.12 at $12.56, with 414,236 shares traded. AAL's current last sale is 104.67% of the target price of $12. Business Wire Reports: Alibaba Group Announces June Quarter 2020 Results
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American Airlines Group, Inc. (AAL) is -0.12 at $12.56, with 414,236 shares traded. AAL's current last sale is 104.67% of the target price of $12. Business Wire Reports: Alibaba Group Announces June Quarter 2020 Results
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American Airlines Group, Inc. (AAL) is -0.12 at $12.56, with 414,236 shares traded. AAL's current last sale is 104.67% of the target price of $12. Over the last four weeks they have had 9 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2020.
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American Airlines Group, Inc. (AAL) is -0.12 at $12.56, with 414,236 shares traded. AAL's current last sale is 104.67% of the target price of $12. Over the last four weeks they have had 9 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2020.
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5393.0
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2020-08-20 00:00:00 UTC
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BUZZ-U.S. STOCKS ON THE MOVE-OpGen, AirNet Tech, XpressSpa
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AAL
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https://www.nasdaq.com/articles/buzz-u.s.-stocks-on-the-move-opgen-airnet-tech-xpressspa-2020-08-20
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nan
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nan
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Eikon search string for individual stock moves: STXBZ
The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi
The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh
U.S. stocks opened lower on Thursday after weekly jobless claims rose unexpectedly back above the 1 million mark last week, lending weight to the Federal Reserve's view of a difficult road to economic recovery. .N
At 9:42 ET, the Dow Jones Industrial Average .DJI was down 0.53% at 27,547. The S&P 500 .SPX was unchanged at 0 and the Nasdaq Composite .IXIC was was unchanged at 11,145.967. The top three S&P 500 .PG.INX percentage gainers: ** L Brands Inc , up 6.7% ** Synopsys Inc , up 3.5% ** Intel Corp , up 2.3% The top three S&P 500 .PL.INX percentage losers: ** Estee Lauder Companies Inc , down 8.2% ** National-Oilwell Varco, Inc , down 3.5% ** United Airlines Holdings Inc , down 3.3% The top three NYSE .PG.N percentage gainers: ** Universal Security Instruments, Inc , up 10.3% ** NexPoint Real Estate Finance Inc , up 8.3% ** Sasol Ltd , up 8% The top three NYSE .PL.N percentage losers: ** NanoViricides Inc , down 11.6% ** Ageagle Aerial Systems Inc , down 10.6% ** NTN Buzztime Inc , down 9.8% The top three Nasdaq .PG.O percentage gainers: ** OpGen Inc , up 52% ** Westwater Resources Inc , up 35.3% ** Autoweb Inc , up 19.8% The top three Nasdaq .PL.O percentage losers: ** Blink Charging Equity Warrants , down 12.1% ** Arcimoto Inc , down 19.7% ** Opera Ltd , down 16.9% ** AMC Entertainment Holdings Inc AMC.N: up 1.1%
BUZZ-Up after report on reopening of 100 locations ** Synopsys Inc SNPS.O: up 3.4%
BUZZ-Set to open at record high on beat-and-raise quarter ** American Airlines Group Inc AAL.O: down 3.2%
BUZZ-To suspend flights to 15 U.S. cities, shares down ** XpressSpa Group XSPA.O: down 11.5%
BUZZ-Falls on bigger Q2 loss ** Four Seasons Education Inc FEDU.N: down 12.3%
BUZZ-Falls on weak Q1 results ** HealthEquity Inc HQY.O: down 2.5% BUZZ-Verity Research cuts to "market perform" ** L Brands LB.N: up 6.9% BUZZ-Gains on surprise quarterly profit ** Nvidia Corp NVDA.O: up 0.6% BUZZ-Street View: Nvidia poised to dominate gaming, data centers markets ** Comstock Resources Inc CRK.N: down 7.1% BUZZ-Slides as Barclays shops block ** CureVac NV CVAC.O: up 8.0% BUZZ-Jumps on supply talks with EU for 225 mln COVID-19 vaccine doses ** Intel Corp INTC.O: up 2.3% BUZZ-Intel: Rises on $10 bln buyback agreement ** AirNet Technology Inc ANTE.O: up 26.6% BUZZ-Soars on capital increase deal with Dragonpass ** Forum Energy Technologies Inc FET.N: up 5.0% BUZZ-Rises as CEO increases stake ** Clearsign Technologies Corp CLIR.O: down 8.2% BUZZ-Falls on proposed stock offering ** Camping World Holdings Inc CWH.N: down 9.4% BUZZ-Skids as top holder offloads 6 mln shares ** OpGen Inc OPGN.O: up 52.0% BUZZ-Jumps after commercial launch of coronavirus test in Europe ** EyePoint Pharmaceuticals Inc EYPT.O: up 16.0% BUZZ-Jumps on expanded $9.5 mln license deal for eye drug ** Shake Shack Inc SHAK.N: up 2.2% BUZZ-Rises as Wedbush upgrades on company's plans to boost sales
The 11 major S&P 500 sectors:
Communication Services
.SPLRCL
up 0.10%
Consumer Discretionary
.SPLRCD
down 0.16%
Consumer Staples
.SPLRCS
down 0.60%
Energy
.SPNY
down 1.76%
Financial
.SPSY
down 1.10%
Health
.SPXHC
down 0.37%
Industrial
.SPLRCI
down 0.98%
Information Technology
.SPLRCT
up 0.11%
Materials
.SPLRCM
down 0.90%
Real Estate
.SPLRCR
up 0.56%
Utilities
.SPLRCU
down 0.22%
(Compiled by Amal S in Bengaluru)
((Amal.S@thomsonreuters.com; within U.S.+1 646 223 8780; outside U.S. +91 80 6749 3677;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The top three S&P 500 .PG.INX percentage gainers: ** L Brands Inc , up 6.7% ** Synopsys Inc , up 3.5% ** Intel Corp , up 2.3% The top three S&P 500 .PL.INX percentage losers: ** Estee Lauder Companies Inc , down 8.2% ** National-Oilwell Varco, Inc , down 3.5% ** United Airlines Holdings Inc , down 3.3% The top three NYSE .PG.N percentage gainers: ** Universal Security Instruments, Inc , up 10.3% ** NexPoint Real Estate Finance Inc , up 8.3% ** Sasol Ltd , up 8% The top three NYSE .PL.N percentage losers: ** NanoViricides Inc , down 11.6% ** Ageagle Aerial Systems Inc , down 10.6% ** NTN Buzztime Inc , down 9.8% The top three Nasdaq .PG.O percentage gainers: ** OpGen Inc , up 52% ** Westwater Resources Inc , up 35.3% ** Autoweb Inc , up 19.8% The top three Nasdaq .PL.O percentage losers: ** Blink Charging Equity Warrants , down 12.1% ** Arcimoto Inc , down 19.7% ** Opera Ltd , down 16.9% ** AMC Entertainment Holdings Inc AMC.N: up 1.1% BUZZ-Up after report on reopening of 100 locations ** Synopsys Inc SNPS.O: up 3.4% BUZZ-Set to open at record high on beat-and-raise quarter ** American Airlines Group Inc AAL.O: down 3.2% BUZZ-To suspend flights to 15 U.S. cities, shares down ** XpressSpa Group XSPA.O: down 11.5% BUZZ-Falls on bigger Q2 loss ** Four Seasons Education Inc FEDU.N: down 12.3% BUZZ-Falls on weak Q1 results ** HealthEquity Inc HQY.O: down 2.5% BUZZ-Verity Research cuts to "market perform" ** L Brands LB.N: up 6.9% BUZZ-Gains on surprise quarterly profit ** Nvidia Corp NVDA.O: up 0.6% BUZZ-Street View: Nvidia poised to dominate gaming, data centers markets ** Comstock Resources Inc CRK.N: down 7.1% BUZZ-Slides as Barclays shops block ** CureVac NV CVAC.O: up 8.0% BUZZ-Jumps on supply talks with EU for 225 mln COVID-19 vaccine doses ** Intel Corp INTC.O: up 2.3% BUZZ-Intel: Rises on $10 bln buyback agreement ** AirNet Technology Inc ANTE.O: up 26.6% BUZZ-Soars on capital increase deal with Dragonpass ** Forum Energy Technologies Inc FET.N: up 5.0% BUZZ-Rises as CEO increases stake ** Clearsign Technologies Corp CLIR.O: down 8.2% BUZZ-Falls on proposed stock offering ** Camping World Holdings Inc CWH.N: down 9.4% BUZZ-Skids as top holder offloads 6 mln shares ** OpGen Inc OPGN.O: up 52.0% BUZZ-Jumps after commercial launch of coronavirus test in Europe ** EyePoint Pharmaceuticals Inc EYPT.O: up 16.0% BUZZ-Jumps on expanded $9.5 mln license deal for eye drug ** Shake Shack Inc SHAK.N: up 2.2% BUZZ-Rises as Wedbush upgrades on company's plans to boost sales The 11 major S&P 500 sectors: Communication Services Eikon search string for individual stock moves: STXBZ The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh U.S. stocks opened lower on Thursday after weekly jobless claims rose unexpectedly back above the 1 million mark last week, lending weight to the Federal Reserve's view of a difficult road to economic recovery. down 0.22% (Compiled by Amal S in Bengaluru) ((Amal.S@thomsonreuters.com; within U.S.+1 646 223 8780; outside U.S. +91 80 6749 3677;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The top three S&P 500 .PG.INX percentage gainers: ** L Brands Inc , up 6.7% ** Synopsys Inc , up 3.5% ** Intel Corp , up 2.3% The top three S&P 500 .PL.INX percentage losers: ** Estee Lauder Companies Inc , down 8.2% ** National-Oilwell Varco, Inc , down 3.5% ** United Airlines Holdings Inc , down 3.3% The top three NYSE .PG.N percentage gainers: ** Universal Security Instruments, Inc , up 10.3% ** NexPoint Real Estate Finance Inc , up 8.3% ** Sasol Ltd , up 8% The top three NYSE .PL.N percentage losers: ** NanoViricides Inc , down 11.6% ** Ageagle Aerial Systems Inc , down 10.6% ** NTN Buzztime Inc , down 9.8% The top three Nasdaq .PG.O percentage gainers: ** OpGen Inc , up 52% ** Westwater Resources Inc , up 35.3% ** Autoweb Inc , up 19.8% The top three Nasdaq .PL.O percentage losers: ** Blink Charging Equity Warrants , down 12.1% ** Arcimoto Inc , down 19.7% ** Opera Ltd , down 16.9% ** AMC Entertainment Holdings Inc AMC.N: up 1.1% BUZZ-Up after report on reopening of 100 locations ** Synopsys Inc SNPS.O: up 3.4% BUZZ-Set to open at record high on beat-and-raise quarter ** American Airlines Group Inc AAL.O: down 3.2% BUZZ-To suspend flights to 15 U.S. cities, shares down ** XpressSpa Group XSPA.O: down 11.5% BUZZ-Falls on bigger Q2 loss ** Four Seasons Education Inc FEDU.N: down 12.3% BUZZ-Falls on weak Q1 results ** HealthEquity Inc HQY.O: down 2.5% BUZZ-Verity Research cuts to "market perform" ** L Brands LB.N: up 6.9% BUZZ-Gains on surprise quarterly profit ** Nvidia Corp NVDA.O: up 0.6% BUZZ-Street View: Nvidia poised to dominate gaming, data centers markets ** Comstock Resources Inc CRK.N: down 7.1% BUZZ-Slides as Barclays shops block ** CureVac NV CVAC.O: up 8.0% BUZZ-Jumps on supply talks with EU for 225 mln COVID-19 vaccine doses ** Intel Corp INTC.O: up 2.3% BUZZ-Intel: Rises on $10 bln buyback agreement ** AirNet Technology Inc ANTE.O: up 26.6% BUZZ-Soars on capital increase deal with Dragonpass ** Forum Energy Technologies Inc FET.N: up 5.0% BUZZ-Rises as CEO increases stake ** Clearsign Technologies Corp CLIR.O: down 8.2% BUZZ-Falls on proposed stock offering ** Camping World Holdings Inc CWH.N: down 9.4% BUZZ-Skids as top holder offloads 6 mln shares ** OpGen Inc OPGN.O: up 52.0% BUZZ-Jumps after commercial launch of coronavirus test in Europe ** EyePoint Pharmaceuticals Inc EYPT.O: up 16.0% BUZZ-Jumps on expanded $9.5 mln license deal for eye drug ** Shake Shack Inc SHAK.N: up 2.2% BUZZ-Rises as Wedbush upgrades on company's plans to boost sales The 11 major S&P 500 sectors: Communication Services Eikon search string for individual stock moves: STXBZ The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh U.S. stocks opened lower on Thursday after weekly jobless claims rose unexpectedly back above the 1 million mark last week, lending weight to the Federal Reserve's view of a difficult road to economic recovery. down 0.90% Real Estate
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The top three S&P 500 .PG.INX percentage gainers: ** L Brands Inc , up 6.7% ** Synopsys Inc , up 3.5% ** Intel Corp , up 2.3% The top three S&P 500 .PL.INX percentage losers: ** Estee Lauder Companies Inc , down 8.2% ** National-Oilwell Varco, Inc , down 3.5% ** United Airlines Holdings Inc , down 3.3% The top three NYSE .PG.N percentage gainers: ** Universal Security Instruments, Inc , up 10.3% ** NexPoint Real Estate Finance Inc , up 8.3% ** Sasol Ltd , up 8% The top three NYSE .PL.N percentage losers: ** NanoViricides Inc , down 11.6% ** Ageagle Aerial Systems Inc , down 10.6% ** NTN Buzztime Inc , down 9.8% The top three Nasdaq .PG.O percentage gainers: ** OpGen Inc , up 52% ** Westwater Resources Inc , up 35.3% ** Autoweb Inc , up 19.8% The top three Nasdaq .PL.O percentage losers: ** Blink Charging Equity Warrants , down 12.1% ** Arcimoto Inc , down 19.7% ** Opera Ltd , down 16.9% ** AMC Entertainment Holdings Inc AMC.N: up 1.1% BUZZ-Up after report on reopening of 100 locations ** Synopsys Inc SNPS.O: up 3.4% BUZZ-Set to open at record high on beat-and-raise quarter ** American Airlines Group Inc AAL.O: down 3.2% BUZZ-To suspend flights to 15 U.S. cities, shares down ** XpressSpa Group XSPA.O: down 11.5% BUZZ-Falls on bigger Q2 loss ** Four Seasons Education Inc FEDU.N: down 12.3% BUZZ-Falls on weak Q1 results ** HealthEquity Inc HQY.O: down 2.5% BUZZ-Verity Research cuts to "market perform" ** L Brands LB.N: up 6.9% BUZZ-Gains on surprise quarterly profit ** Nvidia Corp NVDA.O: up 0.6% BUZZ-Street View: Nvidia poised to dominate gaming, data centers markets ** Comstock Resources Inc CRK.N: down 7.1% BUZZ-Slides as Barclays shops block ** CureVac NV CVAC.O: up 8.0% BUZZ-Jumps on supply talks with EU for 225 mln COVID-19 vaccine doses ** Intel Corp INTC.O: up 2.3% BUZZ-Intel: Rises on $10 bln buyback agreement ** AirNet Technology Inc ANTE.O: up 26.6% BUZZ-Soars on capital increase deal with Dragonpass ** Forum Energy Technologies Inc FET.N: up 5.0% BUZZ-Rises as CEO increases stake ** Clearsign Technologies Corp CLIR.O: down 8.2% BUZZ-Falls on proposed stock offering ** Camping World Holdings Inc CWH.N: down 9.4% BUZZ-Skids as top holder offloads 6 mln shares ** OpGen Inc OPGN.O: up 52.0% BUZZ-Jumps after commercial launch of coronavirus test in Europe ** EyePoint Pharmaceuticals Inc EYPT.O: up 16.0% BUZZ-Jumps on expanded $9.5 mln license deal for eye drug ** Shake Shack Inc SHAK.N: up 2.2% BUZZ-Rises as Wedbush upgrades on company's plans to boost sales The 11 major S&P 500 sectors: Communication Services .N At 9:42 ET, the Dow Jones Industrial Average .DJI was down 0.53% at 27,547. up 0.10% Consumer Discretionary
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The top three S&P 500 .PG.INX percentage gainers: ** L Brands Inc , up 6.7% ** Synopsys Inc , up 3.5% ** Intel Corp , up 2.3% The top three S&P 500 .PL.INX percentage losers: ** Estee Lauder Companies Inc , down 8.2% ** National-Oilwell Varco, Inc , down 3.5% ** United Airlines Holdings Inc , down 3.3% The top three NYSE .PG.N percentage gainers: ** Universal Security Instruments, Inc , up 10.3% ** NexPoint Real Estate Finance Inc , up 8.3% ** Sasol Ltd , up 8% The top three NYSE .PL.N percentage losers: ** NanoViricides Inc , down 11.6% ** Ageagle Aerial Systems Inc , down 10.6% ** NTN Buzztime Inc , down 9.8% The top three Nasdaq .PG.O percentage gainers: ** OpGen Inc , up 52% ** Westwater Resources Inc , up 35.3% ** Autoweb Inc , up 19.8% The top three Nasdaq .PL.O percentage losers: ** Blink Charging Equity Warrants , down 12.1% ** Arcimoto Inc , down 19.7% ** Opera Ltd , down 16.9% ** AMC Entertainment Holdings Inc AMC.N: up 1.1% BUZZ-Up after report on reopening of 100 locations ** Synopsys Inc SNPS.O: up 3.4% BUZZ-Set to open at record high on beat-and-raise quarter ** American Airlines Group Inc AAL.O: down 3.2% BUZZ-To suspend flights to 15 U.S. cities, shares down ** XpressSpa Group XSPA.O: down 11.5% BUZZ-Falls on bigger Q2 loss ** Four Seasons Education Inc FEDU.N: down 12.3% BUZZ-Falls on weak Q1 results ** HealthEquity Inc HQY.O: down 2.5% BUZZ-Verity Research cuts to "market perform" ** L Brands LB.N: up 6.9% BUZZ-Gains on surprise quarterly profit ** Nvidia Corp NVDA.O: up 0.6% BUZZ-Street View: Nvidia poised to dominate gaming, data centers markets ** Comstock Resources Inc CRK.N: down 7.1% BUZZ-Slides as Barclays shops block ** CureVac NV CVAC.O: up 8.0% BUZZ-Jumps on supply talks with EU for 225 mln COVID-19 vaccine doses ** Intel Corp INTC.O: up 2.3% BUZZ-Intel: Rises on $10 bln buyback agreement ** AirNet Technology Inc ANTE.O: up 26.6% BUZZ-Soars on capital increase deal with Dragonpass ** Forum Energy Technologies Inc FET.N: up 5.0% BUZZ-Rises as CEO increases stake ** Clearsign Technologies Corp CLIR.O: down 8.2% BUZZ-Falls on proposed stock offering ** Camping World Holdings Inc CWH.N: down 9.4% BUZZ-Skids as top holder offloads 6 mln shares ** OpGen Inc OPGN.O: up 52.0% BUZZ-Jumps after commercial launch of coronavirus test in Europe ** EyePoint Pharmaceuticals Inc EYPT.O: up 16.0% BUZZ-Jumps on expanded $9.5 mln license deal for eye drug ** Shake Shack Inc SHAK.N: up 2.2% BUZZ-Rises as Wedbush upgrades on company's plans to boost sales The 11 major S&P 500 sectors: Communication Services Eikon search string for individual stock moves: STXBZ The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh U.S. stocks opened lower on Thursday after weekly jobless claims rose unexpectedly back above the 1 million mark last week, lending weight to the Federal Reserve's view of a difficult road to economic recovery. .N At 9:42 ET, the Dow Jones Industrial Average .DJI was down 0.53% at 27,547.
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5394.0
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2020-08-20 00:00:00 UTC
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FTSE 100 drops as Fed minutes stoke recovery worries
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AAL
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https://www.nasdaq.com/articles/ftse-100-drops-as-fed-minutes-stoke-recovery-worries-2020-08-20-0
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nan
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nan
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By Muvija M
Aug 20 (Reuters) - UK shares tracked Asian markets lower on Thursday, as worries mounted over a prolonged economic fallout from the COVID-19 pandemic after the Federal Reserve struck a cautious tone about the U.S. economic recovery.
The FTSE 100 index .FTSE was 1% lower by 0738 GMT, also weighed by a wave of selling in stocks trading ex-dividend. The midcap bourse .FTMC was off 0.5%.
Minutes from the Fed's July 28-29 policy meeting showed policymakers saw the rebound in employment seen in May and June already slowing with additional "substantial improvement" depending on the reopening of businesses.
They warned of a highly uncertain path for recovery from the global health crisis that has hammered economic growth across the world.
"(Fed) minutes are casting a shadow over markets and underline that any recovery is not going to be a straight line of advances," Markets.com analyst Neil Wilson said.
On corporate news-driven moves, miner Antofagasta ANTO.L fell 5% after posting a plunge in half-year earnings, while InterContinental Hotels IHG.L gained 2.5% after a report that French rival Accor ACCP.PA had examined a merger with it.
Along with Antofagasta's results, copper prices falling from a more than one-year high also hammered miners, with Glencore GLEN.L, Anglo American AAL.L, BHP BHPB.L and Rio Tinto RIO.L falling between 2% and 2.4%.
While the FTSE 100 has rebounded from a decade-low hit in March at the height of widespread lockdowns, it is still down 22% from a 2019 peak as concerns over a second wave of COVID-19 infections and the pace of economic recovery persist.
Losses in the midcap index were limited by gains in Mike Ashley's Frasers Group FRAS.L and online electricals retailer AO World AO.L.
Frasers jumped 10% after it forecast growth of up to 30% in its new financial year, while AO World added 4.3%, inching closer to a six-year high, as it said demand for its products and services continued even after its rivals reopened stores in July.
Infrastructure group John Laing JLG.L plummeted 7% after saying it was unlikely to meet its investment target.
FTSE vs STOXXhttps://tmsnrt.rs/34kOR5F
(Reporting by Muvija M in Bengaluru; Editing by Subhranshu Sahu)
((muvija.m@tr.com; within UK: +44 20 7542 1810, outside UK: +91 80 6182 2698; Mobile: +91 90 4702 2289;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Along with Antofagasta's results, copper prices falling from a more than one-year high also hammered miners, with Glencore GLEN.L, Anglo American AAL.L, BHP BHPB.L and Rio Tinto RIO.L falling between 2% and 2.4%. Minutes from the Fed's July 28-29 policy meeting showed policymakers saw the rebound in employment seen in May and June already slowing with additional "substantial improvement" depending on the reopening of businesses. On corporate news-driven moves, miner Antofagasta ANTO.L fell 5% after posting a plunge in half-year earnings, while InterContinental Hotels IHG.L gained 2.5% after a report that French rival Accor ACCP.PA had examined a merger with it.
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Along with Antofagasta's results, copper prices falling from a more than one-year high also hammered miners, with Glencore GLEN.L, Anglo American AAL.L, BHP BHPB.L and Rio Tinto RIO.L falling between 2% and 2.4%. Minutes from the Fed's July 28-29 policy meeting showed policymakers saw the rebound in employment seen in May and June already slowing with additional "substantial improvement" depending on the reopening of businesses. They warned of a highly uncertain path for recovery from the global health crisis that has hammered economic growth across the world.
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Along with Antofagasta's results, copper prices falling from a more than one-year high also hammered miners, with Glencore GLEN.L, Anglo American AAL.L, BHP BHPB.L and Rio Tinto RIO.L falling between 2% and 2.4%. By Muvija M Aug 20 (Reuters) - UK shares tracked Asian markets lower on Thursday, as worries mounted over a prolonged economic fallout from the COVID-19 pandemic after the Federal Reserve struck a cautious tone about the U.S. economic recovery. Losses in the midcap index were limited by gains in Mike Ashley's Frasers Group FRAS.L and online electricals retailer AO World AO.L.
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Along with Antofagasta's results, copper prices falling from a more than one-year high also hammered miners, with Glencore GLEN.L, Anglo American AAL.L, BHP BHPB.L and Rio Tinto RIO.L falling between 2% and 2.4%. By Muvija M Aug 20 (Reuters) - UK shares tracked Asian markets lower on Thursday, as worries mounted over a prolonged economic fallout from the COVID-19 pandemic after the Federal Reserve struck a cautious tone about the U.S. economic recovery. Losses in the midcap index were limited by gains in Mike Ashley's Frasers Group FRAS.L and online electricals retailer AO World AO.L.
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5395.0
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2020-08-20 00:00:00 UTC
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American Airlines Details Upcoming Service Cuts
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https://www.nasdaq.com/articles/american-airlines-details-upcoming-service-cuts-2020-08-20
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By accepting federal aid under the Payroll Support Program portion of the CARES Act, U.S. airlines agreed to maintain payrolls and service to existing markets through at least Sept. 30. American Airlines Group (NASDAQ: AAL) has been among those that have been seeking voluntary employee buyouts and planning for potential layoffs come October.
American has now also detailed service reductions it will impose beginning Oct. 7. The airline announced today that it will suspend service to 15 small markets until at least Nov. 3, once the CARES Act commitment expires.
Image source: Getty Images.
Cities on the list include Greenville, North Carolina; New Haven, Connecticut; and Williamsport, Pennsylvania. And this list may be just the beginning of changes. The company said, "This is the first step as American continues to evaluate its network and plans for additional schedule changes in the coming weeks."
Airlines have been struggling to cut costs and slow cash burn as the coronavirus pandemic continues to limit customer travel. American had said it was going through $100 million per day in April. By the end of June, that cash burn was down to $40 million per day. It said it plans to be at a zero cash burn rate by the end of 2020.
Modifying flight schedules to more closely follow demand and the announced suspension of service to these markets are ways to minimize losses. The company noted that an extension of the Payroll Support Program is under deliberation, and said it will reassess plans as needed depending on the outcome.
10 stocks we like better than American Airlines Group
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*Stock Advisor returns as of August 1, 2020
Howard Smith 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.
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American Airlines Group (NASDAQ: AAL) has been among those that have been seeking voluntary employee buyouts and planning for potential layoffs come October. Airlines have been struggling to cut costs and slow cash burn as the coronavirus pandemic continues to limit customer travel. Modifying flight schedules to more closely follow demand and the announced suspension of service to these markets are ways to minimize losses.
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American Airlines Group (NASDAQ: AAL) has been among those that have been seeking voluntary employee buyouts and planning for potential layoffs come October. By accepting federal aid under the Payroll Support Program portion of the CARES Act, U.S. airlines agreed to maintain payrolls and service to existing markets through at least Sept. 30. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.
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American Airlines Group (NASDAQ: AAL) has been among those that have been seeking voluntary employee buyouts and planning for potential layoffs come October. 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!
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American Airlines Group (NASDAQ: AAL) has been among those that have been seeking voluntary employee buyouts and planning for potential layoffs come October. And this list may be just the beginning of changes. By the end of June, that cash burn was down to $40 million per day.
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5396.0
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2020-08-19 00:00:00 UTC
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Why Airline Shares Jumped Higher Today
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https://www.nasdaq.com/articles/why-airline-shares-jumped-higher-today-2020-08-19
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What happened
I've been saying for a while now that as long as the COVID-19 pandemic is dominating headlines airline shares are likely to trade as a group, focused on hints about future demand, rather than simply based on company-specific news. On Tuesday morning, we saw an illustration of this phenomenon.
On Tuesday shares of United Airlines Holdings (NASDAQ: UAL), American Airlines Group (NASDAQ: AAL), and Delta Air Lines (NYSE: DAL) all traded up more than 5% based on positive commentary from Southwest Airlines (NYSE: LUV), yet Southwest shares didn't climb as high as shares of its rivals.
So what
Airlines have been in a free fall due to the pandemic, with revenue down 80% or more year-over-year and customers refusing to take to the skies. The entire sector plummeted early in the pandemic, and in the months since, the stocks have largely traded in tandem based on positive or negative headlines surrounding the pandemic and how long it might take for travel demand to recover.
Image source: Getty Images.
A Southwest regulatory filing sparked a rally in airline shares on Tuesday. The company said it feels good enough about its liquidity and access to private capital to forgo a government assistance program its CEO had previously called "pretty onerous." Southwest also said it was seeing improved leisure demand in August and heading into September, helping it to lower its estimate for third-quarter average daily cash burn to $20 million from $23 million.
Southwest has a domestic-focused network, and for a decade now the airline has been among the leaders in leisure market share. But the markets on Tuesday are interpreting good news from Southwest about demand as good news for the entire sector, pushing its major rivals higher as well.
Now what
There are plenty of caveats to this bout of optimism. While Southwest is feeling good enough about its financial position not to take the government loans, others including American have indicated they do intend to tap the government for further liquidity.
And even if demand has improved slightly, the overall outlook is still bleak. Southwest expects third-quarter capacity to decrease by 30% to 35% year over year. That's worse than its previous estimate for a 20% to 30% decline. As summer ends some of that leisure demand is going to dry up. Southwest expects October capacity to be down 40% to 50% compared to 2019.
The good news is that thanks to the government loan program and private markets the entire industry has a substantial runway to withstand the worst of the pandemic without running out of cash.
The industry, given enough time, will recover, and I am optimistic domestic bankruptcies can be avoided. But the outlook is still far from certain, and the recovery will take time. For now, it is best for investors to focus on Southwest and other companies that are well positioned for the downturn and to avoid buying riskier names.
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 August 1, 2020
Lou Whiteman 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.
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On Tuesday shares of United Airlines Holdings (NASDAQ: UAL), American Airlines Group (NASDAQ: AAL), and Delta Air Lines (NYSE: DAL) all traded up more than 5% based on positive commentary from Southwest Airlines (NYSE: LUV), yet Southwest shares didn't climb as high as shares of its rivals. What happened I've been saying for a while now that as long as the COVID-19 pandemic is dominating headlines airline shares are likely to trade as a group, focused on hints about future demand, rather than simply based on company-specific news. The company said it feels good enough about its liquidity and access to private capital to forgo a government assistance program its CEO had previously called "pretty onerous."
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On Tuesday shares of United Airlines Holdings (NASDAQ: UAL), American Airlines Group (NASDAQ: AAL), and Delta Air Lines (NYSE: DAL) all traded up more than 5% based on positive commentary from Southwest Airlines (NYSE: LUV), yet Southwest shares didn't climb as high as shares of its rivals. But the markets on Tuesday are interpreting good news from Southwest about demand as good news for the entire sector, pushing its major rivals higher as well. The good news is that thanks to the government loan program and private markets the entire industry has a substantial runway to withstand the worst of the pandemic without running out of cash.
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On Tuesday shares of United Airlines Holdings (NASDAQ: UAL), American Airlines Group (NASDAQ: AAL), and Delta Air Lines (NYSE: DAL) all traded up more than 5% based on positive commentary from Southwest Airlines (NYSE: LUV), yet Southwest shares didn't climb as high as shares of its rivals. But the markets on Tuesday are interpreting good news from Southwest about demand as good news for the entire sector, pushing its major rivals higher as well. 10 stocks we like better than Southwest Airlines When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen.
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On Tuesday shares of United Airlines Holdings (NASDAQ: UAL), American Airlines Group (NASDAQ: AAL), and Delta Air Lines (NYSE: DAL) all traded up more than 5% based on positive commentary from Southwest Airlines (NYSE: LUV), yet Southwest shares didn't climb as high as shares of its rivals. The good news is that thanks to the government loan program and private markets the entire industry has a substantial runway to withstand the worst of the pandemic without running out of cash. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.
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5397.0
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2020-08-18 00:00:00 UTC
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Pre-Market Most Active for Aug 18, 2020 : WMT, NIO, TSLA, GOLD, TLSA, KSS, AAL, QQQ, TIGR, SE, RXT, GE
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AAL
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https://www.nasdaq.com/articles/pre-market-most-active-for-aug-18-2020-%3A-wmt-nio-tsla-gold-tlsa-kss-aal-qqq-tigr-se-rxt-ge
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The NASDAQ 100 Pre-Market Indicator is up 53.32 to 11,341.89. The total Pre-Market volume is currently 10,151,049 shares traded.
The following are the most active stocks for the pre-market session:
Walmart Inc. (WMT) is -0.61 at $134.99, with 3,810,310 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Jul 2020. The consensus EPS forecast is $1.22. Business Wire Reports: Walmart U.S. Q2 comp sales grew 9.3% and Walmart U.S. eCommerce sales grew 97%
NIO Inc. (NIO) is +0.13 at $14.18, with 1,365,511 shares traded. NIO's current last sale is 109.08% of the target price of $13.
Tesla, Inc. (TSLA) is +63.3602 at $1,899.00, with 724,230 shares traded. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2020. The consensus EPS forecast is $0.68. , following a 52-week high recorded in prior regular session.
Barrick Gold Corporation (GOLD) is +1.1 at $31.23, with 680,114 shares traded. As reported by Zacks, the current mean recommendation for GOLD is in the "buy range".
Tiziana Life Sciences plc (TLSA) is +0.68 at $4.73, with 661,972 shares traded. As reported by Zacks, the current mean recommendation for TLSA is in the "strong buy range".
Kohl's Corporation (KSS) is -1.04 at $22.41, with 638,625 shares traded. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Jul 2020. The consensus EPS forecast is $-0.92. Business Wire Reports: Kohl''s Corporation Reports Financial Results
American Airlines Group, Inc. (AAL) is unchanged at $12.62, with 575,903 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Mar 2021. The consensus EPS forecast is $-1.62. AAL's current last sale is 105.17% of the target price of $12.
Invesco QQQ Trust, Series 1 (QQQ) is +1.23 at $276.55, with 396,558 shares traded., following a 52-week high recorded in prior regular session.
UP Fintech Holding Limited (TIGR) is -0.1 at $6.90, with 390,667 shares traded.
Sea Limited (SE) is +9.12 at $143.40, with 372,275 shares traded. Business Wire Reports: Sea Limited Reports Second Quarter 2020 Results
Rackspace Technology, Inc. (RXT) is +1.29 at $19.60, with 362,443 shares traded., following a 52-week high recorded in prior regular session.
General Electric Company (GE) is +0.04 at $6.51, with 293,440 shares traded. As reported by Zacks, the current mean recommendation for GE is in the "buy range".
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines Group, Inc. (AAL) is unchanged at $12.62, with 575,903 shares traded. AAL's current last sale is 105.17% of the target price of $12. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2020.
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American Airlines Group, Inc. (AAL) is unchanged at $12.62, with 575,903 shares traded. AAL's current last sale is 105.17% of the target price of $12. Business Wire Reports: Walmart U.S. Q2 comp sales grew 9.3% and Walmart U.S. eCommerce sales grew 97%
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American Airlines Group, Inc. (AAL) is unchanged at $12.62, with 575,903 shares traded. AAL's current last sale is 105.17% of the target price of $12. The total Pre-Market volume is currently 10,151,049 shares traded.
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American Airlines Group, Inc. (AAL) is unchanged at $12.62, with 575,903 shares traded. AAL's current last sale is 105.17% of the target price of $12. Walmart Inc. (WMT) is -0.61 at $134.99, with 3,810,310 shares traded.
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5398.0
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2020-08-18 00:00:00 UTC
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Yikes! Buffett Has Now Sold 32 Stocks in 6 Months
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AAL
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https://www.nasdaq.com/articles/yikes-buffett-has-now-sold-32-stocks-in-6-months-2020-08-18
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Since the beginning of 2010, Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) CEO Warren Buffett has taken his fair share of criticism for not wildly outperforming the benchmark S&P 500. Through this past weekend, Berkshire Hathaway's stock was up 221% since 2010 began, with the S&P 500 offering a 277% total return, inclusive of dividends.
But when it comes to Warren Buffett, a decade might be considered a short time frame. Over the past 55 years, Berkshire Hathaway's share price has gained an aggregate of 2,744,062%, which is more than 2,700,000% better than the S&P 500, inclusive of dividends, over this same span.
One look at Buffett's investment in Apple, which has resulted in unrealized gains of $80 billion in four years, shows that he hasn't lost his touch. Investments like this have Wall Street and investors waiting on the edge of their seats to find out what the Oracle of Omaha has been buying and selling during one of the most volatile years on record for equities.
Image source: Getty Images.
Buffett has been on a selling rampage in 2020
This past Friday, Aug. 14, following the closing bell, Berkshire Hathaway filed Form 13F with the Securities and Exchange Commission. Required of all companies with more than $100 million in assets under management, Form 13F provides an under-the-hood look at what's in Berkshire Hathaway's portfolio. Put another way, it allows us to see what Buffett and his investment team bought and sold between April 1 and June 30.
Similar to the first quarter, Buffett and his investment lieutenants, Todd Combs and Ted Weschler, were very busy bees. The second quarter saw one new position initiated, along with four existing positions augmented. Meanwhile, 18 separate stocks were either pared down or sold off in their entirety. In fact, dating back to the beginning of the year, Buffett and his team have sold shares in 32 separate stocks in six months.
The following nine stocks have been completely sold off:
Phillips 66
Travelers Cos.
Goldman Sachs
American Airlines Group (NASDAQ: AAL)
Southwest Airlines (NYSE: LUV)
United Airlines (NASDAQ: UAL)
Delta Air Lines (NYSE: DAL)
Occidental Petroleum
Restaurant Brands International
Meanwhile, these five stocks have seen their positions in Berkshire's portfolio reduced by a double-digit percentage in the last six months:
JPMorgan Chase
Sirius XM
Wells Fargo (NYSE: WFC)
M&T Bank
PNC Financial Services
Image source: Getty Images.
These remaining stocks were all, at one point, pared down, with a small handful able to build their positions back up in the second quarter:
Synchrony Financial
DaVita
VeriSign
Teva Pharmaceutical Industries
Liberty Latin America
Liberty Global (Class A)
Liberty SiriusXM Group (Class A)
Liberty SiriusXM Group (Class C) (was added to in Q2)
General Motors
Amazon
Suncor Energy (was added to in Q2)
Biogen
Axalta Coating Systems
Bank of NY Mellon
Charter Communications
Visa
Mastercard
U.S. Bancorp
Go ahead a take a deep breath after all that.
Berkshire Hathaway CEO Warren Buffett. Image source: The Motley Fool.
Four trends that stand out
You're probably asking yourself, why all the selling? I believe the answer boils down to four factors.
First, Buffett and his team are realizing that the coronavirus pandemic could be long-lasting and may well alter how certain industries operate. Buffett sold off American Airlines, Southwest Airlines, Delta Air Lines, and United Airlines specifically because he expects it to take years for the airline industry to recover. He's counting on the airlines to take on substantive amounts of debt to finance their operations during this crisis. For American Airlines, Southwest, Delta, and United, this means more cash flow going to service debt, along with no share buybacks or dividends for a long time. In other words, the reasons to own airline stocks are no more.
The same thesis can be applied to the restaurant industry (e.g., the Restaurant Brands International sale) and the oil industry (e.g., the Occidental Petroleum divestment). Occidental is a perfect example of a broken thesis, with the company's acquisition of Anadarko last year now straining its balance sheet and forcing the company to pay Berkshire dividends in common stock (Berkshire Hathaway owns preferred stock in Occidental).
Image source: Wells Fargo.
Secondly, we witnessed Buffett and his team consolidating their investments in the banking industry. It's no secret that bank stocks are Buffett's favorite place to park Berkshire Hathaway's cash. Still, a low-inflation environment and the COVID-19 recession will wallop the earning power of most banks. This is what likely led the billionaire to significantly reduce his company's stakes in JPMorgan Chase and Wells Fargo.
Also, don't forget that Wells Fargo is attempting to move past a scandal that saw 3.5 million unauthorized accounts opened between 2009 and 2016 to fulfill aggressive cross-selling campaigns at the branch level. Buffett is a big fan of brands that nurture trust, and Wells Fargo breached that trust in 2016 and 2017.
A third trend you'll notice is a marked uptick in transactions that involve small purchases or sales on a quarterly basis. Slowly paring down a holding isn't Buffett's style, which suggests that Todd Combs and Ted Weschler are becoming increasingly involved in day-to-day portfolio oversight. The token selling in the first quarter in Biogen and Amazon are perfect examples of this.
Fourth and finally, Berkshire Hathaway's aggressive selling indicates that Buffett still sees little in the way of value in this market. Even though the Oracle of Omaha has deployed nearly $12 billion since the beginning of July, he remains a net seller of equities in 2020.
10 stocks we like better than Berkshire Hathaway (B shares)
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 Berkshire Hathaway (B shares) wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of August 1, 2020
John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Sean Williams owns shares of Amazon, Mastercard, and Teva Pharmaceutical Industries. The Motley Fool owns shares of and recommends Amazon, Berkshire Hathaway (B shares), Biogen, Mastercard, and Visa. The Motley Fool recommends Delta Air Lines, Sirius XM Radio, and Southwest Airlines and recommends the following options: long January 2022 $1920 calls on Amazon, short January 2022 $1940 calls on Amazon, short September 2020 $200 calls on Berkshire Hathaway (B shares), long January 2021 $200 calls on Berkshire Hathaway (B shares), and short January 2021 $200 puts on Berkshire Hathaway (B shares). The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The following nine stocks have been completely sold off: Phillips 66 Travelers Cos. Goldman Sachs American Airlines Group (NASDAQ: AAL) Southwest Airlines (NYSE: LUV) United Airlines (NASDAQ: UAL) Delta Air Lines (NYSE: DAL) Occidental Petroleum Restaurant Brands International Meanwhile, these five stocks have seen their positions in Berkshire's portfolio reduced by a double-digit percentage in the last six months: JPMorgan Chase Sirius XM Wells Fargo (NYSE: WFC) M&T Bank PNC Financial Services Image source: Getty Images. Investments like this have Wall Street and investors waiting on the edge of their seats to find out what the Oracle of Omaha has been buying and selling during one of the most volatile years on record for equities. Also, don't forget that Wells Fargo is attempting to move past a scandal that saw 3.5 million unauthorized accounts opened between 2009 and 2016 to fulfill aggressive cross-selling campaigns at the branch level.
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The following nine stocks have been completely sold off: Phillips 66 Travelers Cos. Goldman Sachs American Airlines Group (NASDAQ: AAL) Southwest Airlines (NYSE: LUV) United Airlines (NASDAQ: UAL) Delta Air Lines (NYSE: DAL) Occidental Petroleum Restaurant Brands International Meanwhile, these five stocks have seen their positions in Berkshire's portfolio reduced by a double-digit percentage in the last six months: JPMorgan Chase Sirius XM Wells Fargo (NYSE: WFC) M&T Bank PNC Financial Services Image source: Getty Images. These remaining stocks were all, at one point, pared down, with a small handful able to build their positions back up in the second quarter: Synchrony Financial DaVita VeriSign Teva Pharmaceutical Industries Liberty Latin America Liberty Global (Class A) Liberty SiriusXM Group (Class A) Liberty SiriusXM Group (Class C) (was added to in Q2) General Motors Amazon Suncor Energy (was added to in Q2) Biogen Axalta Coating Systems Bank of NY Mellon Charter Communications Visa Mastercard U.S. Bancorp Go ahead a take a deep breath after all that. The Motley Fool recommends Delta Air Lines, Sirius XM Radio, and Southwest Airlines and recommends the following options: long January 2022 $1920 calls on Amazon, short January 2022 $1940 calls on Amazon, short September 2020 $200 calls on Berkshire Hathaway (B shares), long January 2021 $200 calls on Berkshire Hathaway (B shares), and short January 2021 $200 puts on Berkshire Hathaway (B shares).
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The following nine stocks have been completely sold off: Phillips 66 Travelers Cos. Goldman Sachs American Airlines Group (NASDAQ: AAL) Southwest Airlines (NYSE: LUV) United Airlines (NASDAQ: UAL) Delta Air Lines (NYSE: DAL) Occidental Petroleum Restaurant Brands International Meanwhile, these five stocks have seen their positions in Berkshire's portfolio reduced by a double-digit percentage in the last six months: JPMorgan Chase Sirius XM Wells Fargo (NYSE: WFC) M&T Bank PNC Financial Services Image source: Getty Images. Occidental is a perfect example of a broken thesis, with the company's acquisition of Anadarko last year now straining its balance sheet and forcing the company to pay Berkshire dividends in common stock (Berkshire Hathaway owns preferred stock in Occidental). The Motley Fool recommends Delta Air Lines, Sirius XM Radio, and Southwest Airlines and recommends the following options: long January 2022 $1920 calls on Amazon, short January 2022 $1940 calls on Amazon, short September 2020 $200 calls on Berkshire Hathaway (B shares), long January 2021 $200 calls on Berkshire Hathaway (B shares), and short January 2021 $200 puts on Berkshire Hathaway (B shares).
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The following nine stocks have been completely sold off: Phillips 66 Travelers Cos. Goldman Sachs American Airlines Group (NASDAQ: AAL) Southwest Airlines (NYSE: LUV) United Airlines (NASDAQ: UAL) Delta Air Lines (NYSE: DAL) Occidental Petroleum Restaurant Brands International Meanwhile, these five stocks have seen their positions in Berkshire's portfolio reduced by a double-digit percentage in the last six months: JPMorgan Chase Sirius XM Wells Fargo (NYSE: WFC) M&T Bank PNC Financial Services Image source: Getty Images. Image source: Wells Fargo. The Motley Fool owns shares of and recommends Amazon, Berkshire Hathaway (B shares), Biogen, Mastercard, and Visa.
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5399.0
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2020-08-18 00:00:00 UTC
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If You’re Worried About DraftKings Stock, Don’t Buy the Airliners
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https://www.nasdaq.com/articles/if-youre-worried-about-draftkings-stock-dont-buy-the-airliners-2020-08-18
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
With the Big Ten and Pac-12 postponing fall football, investors are starting to worry that DraftKings (NASDAQ:DKNG) won’t have anything to bet on this fall. With such a noticeable headwind, you would think DraftKings stock would be cratering.
DKNG) logo on a phone" width="300" height="169">
Source: Lori Butcher / Shutterstock.com
But it’s not. Here’s why.
DraftKings Stock Is Down but Not Out
On Aug. 14, DKNG stock slipped almost 6%. While there were some troubles during the second quarter, DraftKings reported a generally favorable result. I’m chalking up this decline in its share price to a “buy on rumor, sell on news” kind of deal.
8 Dividend Stocks That Look Too Generous
As I said in the beginning, investors are getting worried that there won’t be any sports for people to bet on if the football leagues keep postponing games until 2021. There’s a kernel of truth to this idea. However, let’s not forget that baseball, soccer, hockey, golf, and basketball are all running right now.
“The Action Network, a sports betting-focused media company, had its biggest week ever for golf and NHL picks last week, and its second-biggest week ever for the NBA,” Axios contributor Kendall Baker wrote Aug. 12.
Baker points out that sports betting is currently legal in 23 states if you include the four who’ve passed bills but have yet to implement fully. Another nine states have bills in motion. Further, he reminds his readers that states previously lukewarm on the idea, are jumping on the bandwagon because in-person gambling looks ready to take a reduced role in overall future revenues.
“For most major stakeholders in the U.S., sports betting was always a 2023 or 2024 story,” Baker quotes Chris Grove, partner at Eilers & Krejcik Gaming. “So the industry appears to be shrugging off any concern about the long-term impact of COVID-19.”
And why not? Eventually, sports and life will get back to normal. By then, sports betting will be legal in a whole bunch of additional states, putting DraftKings in the driver’s seat.
DraftKings stock might take it on the chin for the next seven to 10 days. Ultimately, despite facing the same sort of headwinds as airline stocks, it’s not in nearly as much trouble in the near term.
DraftKings Has Plenty of Cash
Company management says that without sports, it’s burning $15to $20 million a month in cash. Meanwhile, the airlines, which face a much steeper hill to climb, are burning between $5 million and $59 million — a day!
At the high end of the daily burn rate is American Airlines (NASDAQ:AAL), which is burning $1.8 billion. Meanwhile, relative to its burn rate, DraftKings is sitting on a ton of cash.
“This is relative to their $1.1 billion cash balance we estimate for the end of June, indicating an over 4.5 years sports hiatus before having to raise capital,” Rosenblatt Securities analyst Bernie McTernan wrote recently. “Assuming the potential hiatus would only be temporary, we do not believe it would impact the long term opportunity for OSB [online sports betting] in the US, meaning DKNG would still be in the early innings of a potential $18 billion market opportunity.”
It’s safe to say that one of the major airlines will go bankrupt long before DraftKings runs out of cash. For this reason, you’ve got to be crazy to choose one of the airline stocks over DKNG.
McTernan also believes because the states are starving for revenue, the rest of them will fall in line much faster than they would have pre-Covid.
“There is momentum in the business with OSB and iGaming both surging,” McTernan said. “Sports betting revenue was 30%-plus year-over-year in NJ in June despite the difficult sports calendar comparison while iGaming revenue up 123%-plus year-over-year.”
Forget the short-term implications of no football, there’s plenty to keep sports betters busy, which is why McTernan has a buy rating and a $60 target price.
The Bottom Line
My InvestorPlace colleague, Josh Enomoto, recently called DraftKings stock an excellent short-term trade. He’s bearish long term because of the impending second wave of Covid-19.
While I get his rationale, I’m someone who focuses three to five years down the road, and what its business is going to look like at that time. Josh calls DKNG a “high-conviction buy” for a short-term trade. I consider it a high-conviction buy for the long term.
That said, if you can pick up some stock in the $20s on a correction, I would consider doing so.
If DraftKings fails long term, it won’t be because legal sports betting never took off. It will be because it was unable to execute its plan.
Will Ashworth has written about investments full-time since 2008. Publications where he’s appeared include InvestorPlace, The Motley Fool Canada, Investopedia, Kiplinger, and several others in both the U.S. and Canada. He particularly enjoys creating model portfolios that stand the test of time. He lives in Halifax, Nova Scotia. At the time of this writing Will Ashworth did not hold a position in any of the aforementioned securities.
The post If You’re Worried About DraftKings Stock, Don’t Buy the Airliners appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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At the high end of the daily burn rate is American Airlines (NASDAQ:AAL), which is burning $1.8 billion. 8 Dividend Stocks That Look Too Generous As I said in the beginning, investors are getting worried that there won’t be any sports for people to bet on if the football leagues keep postponing games until 2021. Further, he reminds his readers that states previously lukewarm on the idea, are jumping on the bandwagon because in-person gambling looks ready to take a reduced role in overall future revenues.
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At the high end of the daily burn rate is American Airlines (NASDAQ:AAL), which is burning $1.8 billion. InvestorPlace - Stock Market News, Stock Advice & Trading Tips With the Big Ten and Pac-12 postponing fall football, investors are starting to worry that DraftKings (NASDAQ:DKNG) won’t have anything to bet on this fall. “Sports betting revenue was 30%-plus year-over-year in NJ in June despite the difficult sports calendar comparison while iGaming revenue up 123%-plus year-over-year.” Forget the short-term implications of no football, there’s plenty to keep sports betters busy, which is why McTernan has a buy rating and a $60 target price.
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At the high end of the daily burn rate is American Airlines (NASDAQ:AAL), which is burning $1.8 billion. InvestorPlace - Stock Market News, Stock Advice & Trading Tips With the Big Ten and Pac-12 postponing fall football, investors are starting to worry that DraftKings (NASDAQ:DKNG) won’t have anything to bet on this fall. “Assuming the potential hiatus would only be temporary, we do not believe it would impact the long term opportunity for OSB [online sports betting] in the US, meaning DKNG would still be in the early innings of a potential $18 billion market opportunity.” It’s safe to say that one of the major airlines will go bankrupt long before DraftKings runs out of cash.
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At the high end of the daily burn rate is American Airlines (NASDAQ:AAL), which is burning $1.8 billion. DraftKings Stock Is Down but Not Out On Aug. 14, DKNG stock slipped almost 6%. Ultimately, despite facing the same sort of headwinds as airline stocks, it’s not in nearly as much trouble in the near term.
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