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5500.0
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2020-07-19 00:00:00 UTC
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American Airlines and JetBlue Team Up in the Northeast (Again)
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AAL
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https://www.nasdaq.com/articles/american-airlines-and-jetblue-team-up-in-the-northeast-again-2020-07-19
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A decade ago this week, JetBlue Airways (NASDAQ: JBLU) and pre-merger American Airlines (NASDAQ: AAL) announced a partnership to bolster their market positions in New York and Boston. An interline agreement enabled customers to book tickets connecting between various domestic markets served by JetBlue to more than a dozen of American's international routes. The airlines also implemented a limited degree of frequent-flyer reciprocity.
That partnership fell apart in less than four years. American Airlines merged with US Airways, which had a massive presence on the East Coast, making the JetBlue relationship seem less vital. Meanwhile, JetBlue announced in the summer of 2013 that it would start offering lie-flat seats on flights from New York to Los Angeles and San Francisco, encroaching on a lucrative premium market where American was a major player.
Now, with the COVID-19 crisis upending the airline industry, American and JetBlue have decided to form a new partnership, again focused on the New York and Boston markets. Will the second time be the charm? Let's take a look.
A new partnership takes shape
Under the deal announced on Thursday, JetBlue and American Airlines will forge codeshare and reciprocal loyalty agreements. JetBlue customers will gain access to 60 American Airlines routes from New York and Boston, while American Airlines customers will gain access to 130 JetBlue routes.
Image source: American Airlines and JetBlue Airways.
Once again, connecting passengers between JetBlue's domestic routes and American Airlines' international routes is the centerpiece of the partnership. With this deal in place, American plans to add three long-haul routes from New York's JFK Airport: new year-round service to Tel Aviv, new summer seasonal service to Athens, and the return of winter seasonal service to Rio De Janeiro. After the COVID-19 crisis passes, American hopes to add more new routes from New York to Europe, Africa, India, and South America.
JetBlue carries nearly three times as much domestic traffic as American Airlines at JFK. Having access to such a large pool of potential connecting traffic to complement local demand in New York could be critical for making American's new long-haul routes viable -- and improving the profitability of its existing long-haul routes.
The new partnership won't be limited to domestic-international connections, though. JetBlue customers will gain access via American Airlines to new domestic markets where the low-fare carrier has little or no presence today.
Furthermore, the two airlines will shift slots around in order to grow in New York's capacity-constrained airports. For example, American Airlines may let JetBlue use slots that it does not need at LaGuardia Airport. In recent years, American hasn't used all of its slots at JFK Airport, either, so there could be opportunities there, too.
Image source: American Airlines.
Why a JetBlue-American Airlines alliance makes sense
The new partnership between JetBlue and American Airlines holds promise for several reasons. First, JetBlue has always been very weak in the middle part of the U.S. It would be hard to justify an aggressive growth push there in the current market environment. Giving customers the ability to access American Airlines flights to that region while still earning JetBlue frequent-flyer points is an easier way to make JetBlue more attractive relative to top rival Delta Air Lines in New York and Boston.
Second, American Airlines has struggled for years to come up with an appropriate strategy for New York. It doesn't have enough slots at LaGuardia and JFK to compete head-to-head against Delta, but it also has been loath to walk away from the largest U.S. market. The JetBlue partnership will give it added heft in this key market. In fact, American and JetBlue claim that combined, they offer more daily flights from the greater New York area than any other carrier.
Third, the American-JetBlue partnership could help the carriers utilize their valuable slots at JFK Airport more effectively. For example, American Airlines' fall and winter schedule calls for it to operate six daily roundtrips between JFK and Boston, including four on tiny 44-seat jets. JetBlue also flies a robust schedule on that route using larger planes, so with the partnership in place, American could potentially use those slots to grow in strategically more valuable markets.
Pitfalls abound
Notwithstanding the benefits of this new alliance between American Airlines and JetBlue, the collapse of their previous arrangement demonstrates how precarious such partnerships can be. The two sides will only cooperate as long as they both feel like the benefits of the relationship outweigh the costs and risks.
One potential pitfall is JetBlue's plan to expand into Europe, beginning with the launch of flights to London next year. JetBlue could disrupt pricing in lucrative American Airlines markets like New York-London, potentially straining the relationship between the two companies. American will also have to balance international growth in New York against the risk of cannibalizing its existing transatlantic gateway in Philadelphia, which has lower local demand but is a more efficient connecting hub.
American Airlines also has to weigh the risk that referring frequent flyers to JetBlue flights on certain routes could backfire if those customers fall in love with JetBlue's extra legroom in coach, free Wi-Fi and satellite TV, and other amenities.
Yet desperate times call for desperate measures. Sticking with the status quo in New York isn't an option for American Airlines anymore. Working with JetBlue to gain scale in New York (and Boston, for that matter) may be the best move despite the risks.
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 June 2, 2020
Adam Levine-Weinberg owns shares of Delta Air Lines and JetBlue Airways and is long January 2022 $10 calls on JetBlue Airways. The Motley Fool recommends Delta Air Lines 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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A decade ago this week, JetBlue Airways (NASDAQ: JBLU) and pre-merger American Airlines (NASDAQ: AAL) announced a partnership to bolster their market positions in New York and Boston. Meanwhile, JetBlue announced in the summer of 2013 that it would start offering lie-flat seats on flights from New York to Los Angeles and San Francisco, encroaching on a lucrative premium market where American was a major player. JetBlue also flies a robust schedule on that route using larger planes, so with the partnership in place, American could potentially use those slots to grow in strategically more valuable markets.
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A decade ago this week, JetBlue Airways (NASDAQ: JBLU) and pre-merger American Airlines (NASDAQ: AAL) announced a partnership to bolster their market positions in New York and Boston. JetBlue customers will gain access to 60 American Airlines routes from New York and Boston, while American Airlines customers will gain access to 130 JetBlue routes. Once again, connecting passengers between JetBlue's domestic routes and American Airlines' international routes is the centerpiece of the partnership.
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A decade ago this week, JetBlue Airways (NASDAQ: JBLU) and pre-merger American Airlines (NASDAQ: AAL) announced a partnership to bolster their market positions in New York and Boston. JetBlue customers will gain access to 60 American Airlines routes from New York and Boston, while American Airlines customers will gain access to 130 JetBlue routes. Giving customers the ability to access American Airlines flights to that region while still earning JetBlue frequent-flyer points is an easier way to make JetBlue more attractive relative to top rival Delta Air Lines in New York and Boston.
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A decade ago this week, JetBlue Airways (NASDAQ: JBLU) and pre-merger American Airlines (NASDAQ: AAL) announced a partnership to bolster their market positions in New York and Boston. JetBlue customers will gain access to 60 American Airlines routes from New York and Boston, while American Airlines customers will gain access to 130 JetBlue routes. JetBlue customers will gain access via American Airlines to new domestic markets where the low-fare carrier has little or no presence today.
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5501.0
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2020-07-19 00:00:00 UTC
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When Will the Airline Stocks Recover?
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AAL
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https://www.nasdaq.com/articles/when-will-the-airline-stocks-recover-2020-07-19
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Airlines were hammered in the coronavirus market downturn, which caught the attention of contrarians and deep-value investors. Many people felt like geniuses for buying on the dip ahead of a May rally, but the plot has since thickened with much of those gains being erased. Shares of Delta Air Lines are down 55% year-to-date, while American Airlines dropped 60%, United Airlines has fallen 64%, and Southwest has managed to relatively shine at a mere 38% decline. Long-term investors should consider the evolving industry fundamentals and compare these to historical figures. What results do the airlines need to report to demonstrate true recovery?
Air travel nearly came to a complete halt in April, and the resulting revenue shock fueled worries that large carriers would be unable to meet their monthly debt and lease obligations. Bankruptcy threats are usually enough to rattle cages in the stock market, and that certainly held true in this case. The JETS ETF (NYSEMKT: JETS) dropped from $32 in February to $12 in March, far outpacing major indices. The ETF was volatile for several weeks following the low, before a rally pushed shares as high as $22 in May. That joy was short-lived, as JETS has since dipped to $16.
Image source: Getty Images.
The Extent of Disruption is Staggering
Preliminary data from the Bureau of Transportation Statistics indicates that airline passenger volume fell 96% year-over-year for the month of April, following a 51% drop in March. Major airlines carried three million passengers in April, the lowest monthly total in the 45 years of industrywide data tracking.
This has obvious implications for top-lines across the industry. Major US airlines generate roughly 75% of revenues from passenger fares, while baggage fees, upgrade and itinerary change fees, and cargo represent the remainder of revenue.
This Shock is Especially Challenging for Airlines
No business can casually absorb multiple months of lost revenues, but airlines are especially vulnerable in this scenario. These companies have significant fixed expenses and cash outflows due to their business model and capital structure.
Airlines generally maintain narrow margins. Industry average operating margins were around 7% in 2019, with net profit margins around 4-5%, so a 10% decline in revenue could wipe out profits entirely.
Some major expenses for airlines will decline with lower volumes, such as fuel costs, which represented about 20% of total operating expenses in 2019. Nonetheless, labor costs make up 35% of total expenses, and it's difficult to quickly downsize with heavily unionized employees. Fixed cash outflows are also supported by aircraft and facilities leases, capital expenditures for aircraft, facilities and maintenance, and debt service obligations. Airlines tend to carry debt-heavy capital structures, meaning short-term debt and interest are more meaningful than in most other industries.
Major airlines clearly have little room for error in their business model. When revenues contract sharply, the companies quickly become unprofitable, and it becomes difficult to meet their cash flow obligations. That's exactly why the chatter about bankruptcy and bailouts was so dire when this recession first began, and the threat continues for many carriers.
How Airlines Reacted
Domestic passenger revenues fell roughly 20% in the first quarter, and Q2 figures promise to be far worse. Competitors in this industry were still deeply impacted on the bottom line in Q1. American, for example, reported net cash outflows from operations exceeding $160 million, with an additional $925 million paid on long-term debt and lease obligations.
Carriers slashed capacity more than 80% by eliminating flights and using smaller aircraft. American announced that its current employee count was 20,000 too high for Q4 projected volumes, though no layoffs could be made in the current period due to terms of the Payroll Protection Program loan. It won't be shocking to see 15-20% of airline employees laid off or furloughed in September or October. United, for example, warned 36,000 employees that they could be laid off in October if air traffic doesn't increase.
Several airlines have been able to retain liquidity through various provisions in the CARES Act. American, Spirit, Hawaiian, Frontier, and SkyWest were able to hash out loan deals in early July, and other carriers may follow that lead. Several companies have tapped private capital markets to increase cash on hand too.
What Does Recovery Look Like?
Major airlines still have a long way to go to justify pre-COVID valuations. Even if we suppose that lower fuel prices and the current cost-cutting initiatives lead to a sharp increase in margins, systemwide monthly volume would have to climb to 60 million passengers, at a minimum. That assumes steady pricing despite likely lower demand, and higher margins despite lost economies of scale. The additional debt assumed by carriers will also lead to higher cash outflows. It is hard to envision a turnaround of this magnitude occurring in 2020.
It would appear that true recovery is far from realized today. This may still be an attractive entry point for value investors looking for high-quality stocks with upside, but it would need to be a long-term position.
10 stocks we like better than U.S. Global Jets ETF
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 U.S. Global Jets ETF 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 June 2, 2020
Ryan Patrick has no position in any of the stocks mentioned. 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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Air travel nearly came to a complete halt in April, and the resulting revenue shock fueled worries that large carriers would be unable to meet their monthly debt and lease obligations. The Extent of Disruption is Staggering Preliminary data from the Bureau of Transportation Statistics indicates that airline passenger volume fell 96% year-over-year for the month of April, following a 51% drop in March. Even if we suppose that lower fuel prices and the current cost-cutting initiatives lead to a sharp increase in margins, systemwide monthly volume would have to climb to 60 million passengers, at a minimum.
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These companies have significant fixed expenses and cash outflows due to their business model and capital structure. Some major expenses for airlines will decline with lower volumes, such as fuel costs, which represented about 20% of total operating expenses in 2019. American, for example, reported net cash outflows from operations exceeding $160 million, with an additional $925 million paid on long-term debt and lease obligations.
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Shares of Delta Air Lines are down 55% year-to-date, while American Airlines dropped 60%, United Airlines has fallen 64%, and Southwest has managed to relatively shine at a mere 38% decline. This Shock is Especially Challenging for Airlines No business can casually absorb multiple months of lost revenues, but airlines are especially vulnerable in this scenario. Some major expenses for airlines will decline with lower volumes, such as fuel costs, which represented about 20% of total operating expenses in 2019.
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Bankruptcy threats are usually enough to rattle cages in the stock market, and that certainly held true in this case. These companies have significant fixed expenses and cash outflows due to their business model and capital structure. Global Jets ETF wasn't one of them!
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5502.0
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2020-07-17 00:00:00 UTC
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Don’t Expect Earnings to Provide a Reason to Own United Airlines Stock
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AAL
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https://www.nasdaq.com/articles/dont-expect-earnings-to-provide-a-reason-to-own-united-airlines-stock-2020-07-17
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
There is a case for airline stocks at the moment. But choosing United Airlines (NASDAQ:UAL) in that group seems potentially foolish. There’s just not a strong enough argument for United Airlines stock even for investors bullish on the sector.
Source: NextNewMedia / Shutterstock.com
With United set to report second quarter earnings on Wednesday morning, some investors might hope that UAL stock is nearing another bottom. Indeed, airline stocks have caught a bounce in recent sessions, after fading from early June highs.
From a short-term perspective, the rally may continue. Investors are getting earnings next week not just from United, but from Southwest Airlines (NYSE:LUV), American Airlines (NASDAQ:AAL), and Alaska Air (NYSE:ALK) on Thursday morning. The numbers are going to be ugly, as a report this week showed, but at this point any news might be considered good news.
Taking the broader view, however, an investor choosing United Airlines stock now needs to believe the name will outperform. For several reasons, that seems doubtful. There are key concerns here, concerns that aren’t going to be fixed by earnings next week — or any time soon.
The Delta Problem
We know United earnings are going to be historically awful. Obviously, the performance will have little, if anything, to do with United’s execution. With airports shut down and flights canceled worldwide, there simply was nothing United or its peers could do.
15 Growth Stocks That Are Being Propped Up By Low Rates
We already got a preview this week as Delta Air Lines (NYSE:DAL) reported its second-quarter earnings. Excluding its owned oil refinery, Delta’s revenue declined an incredible 91% year-over-year.
Delta stock declined after the report, though it’s likely a headline earnings miss wasn’t the culprit. Rather, as I wrote before that release, Delta management needed to tell a story that could inspire confidence. Unsurprisingly, it wasn’t able to do so.
It’s difficult to see how United can do any better. Its management credibility is far lower. Despite one of the industry’s highest debt loads, United made little effort to fix its balance sheet before the pandemic hit, despite an economic recovery that was the longest on record. In fact, its debt rose in recent years.
Meanwhile, Delta already tamped down expectations. Its chief executive officer warned investors that it would be “more than two years” before the industry recovered. If United executives are more optimistic, I’m skeptical investors will listen. And that in turn suggests that United Airlines stock is going to have a hard time rallying. If anything, it may decline, as DAL stock did.
Choosing Southwest
This short-term issue facing UAL after earnings also speaks to a broader problem: why should investors choose United over other names in the sector?
In fact, I’d look to Southwest in particular. Unlike its peers, Southwest has never gone bankrupt. Its balance sheet is in much better shape. Its management is far better-regarded.
And at least relative to current 2021 analyst expectations for the sector, LUV stock is cheaper than UAL on an earnings basis.
To be fair, United Airlines stock probably has more upside than Southwest. Higher debt and thinner margins both suggest more room for improvement. But that still leaves UAL stock as a pick for a so-called ‘V-shaped recovery’. Delta management made clear this week that such a recovery isn’t on the way. It seems unlikely that rivals will have a different outlook next week.
The Recent Rally in United Airlines Stock
Of course, there’s one retort to all of this pessimism: UAL stock actually gained in recent sessions.
But it’s worth noting what drove the rally. It wasn’t Delta earnings. Rather, as the always-excellent Matt Levine noted at Bloomberg, it was good news from biotech Moderna (NASDAQ:MRNA). Moderna’s progress toward a vaccine for COVID-19 sent a number of travel-related stocks soaring, including airlines.
Even those gains, however, color the case for United Airlines stock. If UAL is only going to rise based on broader optimism, then there’s an even broader group of stocks to choose from. Moderna’s news didn’t just help airlines, but cruise operators and restaurants as well.
Essentially, UAL needs outside help to rally. It needs progress toward normalcy, whether via a vaccine, treatment, or lowering case numbers. And if that progress arrives, it should help other, higher-quality names in and out of the airline sector. As a result, investors should be looking to those names — both before and after next week’s earnings.
Vince Martin has covered the financial industry for close to a decade for InvestorPlace.com and other outlets. He has no positions in any securities mentioned.
The post Don’t Expect Earnings to Provide a Reason to Own United 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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Investors are getting earnings next week not just from United, but from Southwest Airlines (NYSE:LUV), American Airlines (NASDAQ:AAL), and Alaska Air (NYSE:ALK) on Thursday morning. Source: NextNewMedia / Shutterstock.com With United set to report second quarter earnings on Wednesday morning, some investors might hope that UAL stock is nearing another bottom. 15 Growth Stocks That Are Being Propped Up By Low Rates We already got a preview this week as Delta Air Lines (NYSE:DAL) reported its second-quarter earnings.
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Investors are getting earnings next week not just from United, but from Southwest Airlines (NYSE:LUV), American Airlines (NASDAQ:AAL), and Alaska Air (NYSE:ALK) on Thursday morning. But choosing United Airlines (NASDAQ:UAL) in that group seems potentially foolish. Taking the broader view, however, an investor choosing United Airlines stock now needs to believe the name will outperform.
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Investors are getting earnings next week not just from United, but from Southwest Airlines (NYSE:LUV), American Airlines (NASDAQ:AAL), and Alaska Air (NYSE:ALK) on Thursday morning. InvestorPlace - Stock Market News, Stock Advice & Trading Tips There is a case for airline stocks at the moment. The Recent Rally in United Airlines Stock Of course, there’s one retort to all of this pessimism: UAL stock actually gained in recent sessions.
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Investors are getting earnings next week not just from United, but from Southwest Airlines (NYSE:LUV), American Airlines (NASDAQ:AAL), and Alaska Air (NYSE:ALK) on Thursday morning. Choosing Southwest This short-term issue facing UAL after earnings also speaks to a broader problem: why should investors choose United over other names in the sector? Delta management made clear this week that such a recovery isn’t on the way.
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5503.0
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2020-07-17 00:00:00 UTC
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Here's the Top Consumer Stock Robinhood Traders Are Selling Today
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AAL
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https://www.nasdaq.com/articles/heres-the-top-consumer-stock-robinhood-traders-are-selling-today-2020-07-17
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Investing app Robinhood is taking the world by storm -- but that's not always good news for the stocks its users focus on. Case in point: Walt Disney (NYSE: DIS).
Thursday wasn't a great day for the stock market, with the Dow Jones Industrial Average closing down 0.3% and the S&P 500 falling 0.5%. Disney stock, however, got hit twice as hard as the average stock, falling 1.2% -- and Robinhood may be part of the reason why.
According to the Robintrack twitterbot that tracks Robinhood traders' purchases and sales of stocks on a daily basis, Disney was the second most-sold stock on Robinhood Thursday. Among consumer goods stocks in particular, no stock experienced a greater decrease in the number of investors owning it, on Robinhood, than did Disney.
More than 1,700 Robinhood investors sold their shares of Disney -- but why did they sell?
Image source: Getty Images.
Bad news from Wall Street
Not all the news out of Disney is bad these days, after all. Earlier this week, Disney announced a spin-off of its popular Clone Wars animated series that will begin airing in 2021. Taking advantage of the shutdown of live-action production of movie and TV entertainment in Hollywood during the corona crisis, Disney is playing to its strengths in animation, and serving up popular content to a viewing public starved for content.
Meanwhile in parks, on Wednesday Reuters reported that Disneyland Paris is back in business after a four-month hiatus during France's coronavirus shutdown. "Masks were mandatory and advance booking required," reports the news agency. Nevertheless, "a steady stream of visitors trickled in during the morning."
But here's the bad news: Thursday morning, analysts at Wall Street investment bank Cowen & Co. removed their "outperform" (i.e. buy) rating from Disney stock, downgrading the shares to "market perform" and cutting their price target to $97 a share.
When you consider that Disney stock costs more than $119, it's certainly possible that Cowen's warning of an impending 18.5% drop in stock price could have spooked Robinhood traders out of the stock, causing Disney shares to underperform the market today.
What it means to Robinhood investors
Should you be scared?
Not just because Cowen is downgrading, certainly. While I understand how new investors might worry when a big-name Wall Street investment bank says their stock is about to tank, the truth of the matter is that any given Wall Street rating is just "one guy's opinion." When you consider further that, historically, more Wall Street analysts lose to the market than beat it -- as many as 80% or more of Wall Street's "experts" underperform their investing benchmarks -- the idea of selling a stock on some analyst's say-so makes even less sense.
So what should you do when an analyst downgrades your stock -- be it Disney or some other company's shares? My advice would be to ignore the buy/sell recommendation per se, and focus instead on the facts the analyst has dug up. Then decide for yourself whether they warrant a "buy" or a "sell".
In the case of Cowen and Disney, for example, this analyst is worried that the need to enforce social distancing in Disney parks will impose "heavy capacity constraints" on Disney "until at least mid-2021," because the parks won't be able to admit as many guests as they once did while still providing six feet of personal space around each guest.
Cowen further notes that California's Disneyland park is closed and could remain so "due to California's more cautious approach in dealing with the virus," while Walt Disney World in Florida -- now open at diminished capacity -- "could be forced to close again" as coronavirus cases continue to increase. That could keep Disney parks from operating at full capacity until 2022 or later. And of course, Disney's studio entertainment business is continuing to suffer from the closure of movie theaters nationwide -- another bit of bad news expected to stretch well into 2021.
Now consider that domestic parks and studio entertainment are, respectively, Disney's first- and third-biggest businesses by revenue, accounting for 41% of the money Disney took in last year, and that it's possible neither one will be back and running full speed before late 2021 (if then). Disney stock, meanwhile, has declined only 15% in the past year. When you consider all of the above, it seems to me that yes, indeed, Disney stock does have further to fall.
Just not because Cowen says so.
10 stocks we like better than Walt Disney
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 Walt Disney 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 June 2, 2020
Rich Smith has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Walt Disney 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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Thursday wasn't a great day for the stock market, with the Dow Jones Industrial Average closing down 0.3% and the S&P 500 falling 0.5%. Meanwhile in parks, on Wednesday Reuters reported that Disneyland Paris is back in business after a four-month hiatus during France's coronavirus shutdown. And of course, Disney's studio entertainment business is continuing to suffer from the closure of movie theaters nationwide -- another bit of bad news expected to stretch well into 2021.
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But here's the bad news: Thursday morning, analysts at Wall Street investment bank Cowen & Co. removed their "outperform" (i.e. buy) rating from Disney stock, downgrading the shares to "market perform" and cutting their price target to $97 a share. When you consider that Disney stock costs more than $119, it's certainly possible that Cowen's warning of an impending 18.5% drop in stock price could have spooked Robinhood traders out of the stock, causing Disney shares to underperform the market today. The Motley Fool owns shares of and recommends Walt Disney and recommends the following options: long January 2021 $60 calls on Walt Disney and short October 2020 $125 calls on Walt Disney.
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But here's the bad news: Thursday morning, analysts at Wall Street investment bank Cowen & Co. removed their "outperform" (i.e. buy) rating from Disney stock, downgrading the shares to "market perform" and cutting their price target to $97 a share. When you consider that Disney stock costs more than $119, it's certainly possible that Cowen's warning of an impending 18.5% drop in stock price could have spooked Robinhood traders out of the stock, causing Disney shares to underperform the market today. The Motley Fool owns shares of and recommends Walt Disney and recommends the following options: long January 2021 $60 calls on Walt Disney and short October 2020 $125 calls on Walt Disney.
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Bad news from Wall Street Not all the news out of Disney is bad these days, after all. Cowen further notes that California's Disneyland park is closed and could remain so "due to California's more cautious approach in dealing with the virus," while Walt Disney World in Florida -- now open at diminished capacity -- "could be forced to close again" as coronavirus cases continue to increase. The Motley Fool owns shares of and recommends Walt Disney and recommends the following options: long January 2021 $60 calls on Walt Disney and short October 2020 $125 calls on Walt Disney.
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5504.0
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2020-07-16 00:00:00 UTC
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Wall St dips fears over rising COVID-19 cases, tech weighs
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https://www.nasdaq.com/articles/wall-st-dips-fears-over-rising-covid-19-cases-tech-weighs-2020-07-16
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By Noel Randewich
July 16 (Reuters) - The S&P 500 dipped from a five-week high on Thursday, pulled lower by Microsoft Corp MSFT.Oand Apple Inc AAPL.O, as concerns about the economic toll from rising coronavirus cases were heightened by data showing elevated levels of unemployment claims.
U.S. retail sales increased more than expected in June, but a resurgence in new COVID-19 cases is undercutting the budding recovery, keeping 32 million Americans on unemployment benefits.
A jump in domestic case loads has forced California and other states to shut down again, sparking fears of more business damage and slowing the pace of a Wall Street rally. The S&P 500 is about 5% below its February record high.
"The economic data shows there is still a challenge going forward," said Willie Delwiche, an investment strategist at Baird in Milwaukee. "Congress better get its act together and pass another fiscal stimulus."
The S&P 500 has exceeded the Nasdaq by over 2 percentage points over the past week, its greatest five-day outperformance over the Nasdaq since late March, reflecting a shift away from Amazon.com AMZN.O, Microsoft and other major technology companies that have led Wall Street's gains in recent months.
Apple lost 1.1% and Microsoft fell 1.9%, each weighing more than any other company on the S&P 500.
Most S&P 500 sector indexes fell, with real estate .SPLRCR down 1.3% and technology .SPLRCT down 1.2%, more than any other.
"This is an early indication of good signs that money is now flowing away from completely overbought Nasdaq into those names that will bode well when the economy starts finding more of a solid footing," said Andrew Smith, chief investment strategist at Dallas, Texas-based Delos Capital Advisors.
Twitter Inc TWTR.Nfell 1.4% after hackers accessed its internal systems to hijack some of the platform's top voices, including U.S. presidential candidate Joe Biden, reality TV star Kim Kardashian West, former U.S. President Barack Obama and billionaire Elon Musk and used them to solicit digital currency.
At 2:28 p.m. ET (1828 GMT), the Dow Jones Industrial Average .DJI was down 0.62% at 26,702.34 points, while the S&P 500 .SPX lost 0.44% to 3,212.51.
The Nasdaq Composite .IXIC dropped 0.66% to 10,480.66.
Rounding up earnings reports of big banks, Bank of America Corp BAC.N fell 3% after its second-quarter profit more than halved, while Morgan Stanley MS.N rose 2.2% after posting a record quarterly profit.
American Airlines AAL.O dropped 7.2% as it sent 25,000 notices of potential furloughs to frontline workers and warned that demand for air travel is slowing again.
Tesla Inc TSLA.O slipped 1.8% as its vehicle registrations nearly halved in the U.S. state of California during the second quarter, according to data from a marketing research firm.
Declining issues outnumbered advancing ones on the NYSE by a 1.42-to-1 ratio; on Nasdaq, a 1.62-to-1 ratio favored decliners.
The S&P 500 posted 29 new 52-week highs and no new lows; the Nasdaq Composite recorded 72 new highs and 10 new lows.
(Additional reporting by Medha Singh and Devik Jain in Bengaluru Editing by Marguerita Choy)
((noel.randewich@tr.com; (415) 677 2542; Reuters Messaging: Twitter: @randewich))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines AAL.O dropped 7.2% as it sent 25,000 notices of potential furloughs to frontline workers and warned that demand for air travel is slowing again. By Noel Randewich July 16 (Reuters) - The S&P 500 dipped from a five-week high on Thursday, pulled lower by Microsoft Corp MSFT.Oand Apple Inc AAPL.O, as concerns about the economic toll from rising coronavirus cases were heightened by data showing elevated levels of unemployment claims. "This is an early indication of good signs that money is now flowing away from completely overbought Nasdaq into those names that will bode well when the economy starts finding more of a solid footing," said Andrew Smith, chief investment strategist at Dallas, Texas-based Delos Capital Advisors.
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American Airlines AAL.O dropped 7.2% as it sent 25,000 notices of potential furloughs to frontline workers and warned that demand for air travel is slowing again. Apple lost 1.1% and Microsoft fell 1.9%, each weighing more than any other company on the S&P 500. Rounding up earnings reports of big banks, Bank of America Corp BAC.N fell 3% after its second-quarter profit more than halved, while Morgan Stanley MS.N rose 2.2% after posting a record quarterly profit.
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American Airlines AAL.O dropped 7.2% as it sent 25,000 notices of potential furloughs to frontline workers and warned that demand for air travel is slowing again. By Noel Randewich July 16 (Reuters) - The S&P 500 dipped from a five-week high on Thursday, pulled lower by Microsoft Corp MSFT.Oand Apple Inc AAPL.O, as concerns about the economic toll from rising coronavirus cases were heightened by data showing elevated levels of unemployment claims. The S&P 500 has exceeded the Nasdaq by over 2 percentage points over the past week, its greatest five-day outperformance over the Nasdaq since late March, reflecting a shift away from Amazon.com AMZN.O, Microsoft and other major technology companies that have led Wall Street's gains in recent months.
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American Airlines AAL.O dropped 7.2% as it sent 25,000 notices of potential furloughs to frontline workers and warned that demand for air travel is slowing again. Apple lost 1.1% and Microsoft fell 1.9%, each weighing more than any other company on the S&P 500. The Nasdaq Composite .IXIC dropped 0.66% to 10,480.66.
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5505.0
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2020-07-16 00:00:00 UTC
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BUZZ-U.S. STOCKS ON THE MOVE-American Airlines, Tesla, Walt Disney, Lannett
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AAL
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https://www.nasdaq.com/articles/buzz-u.s.-stocks-on-the-move-american-airlines-tesla-walt-disney-lannett-2020-07-16
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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
Wall Street's main indexes fell on Thursday with the S&P 500 slipping from a five-week high as concerns about the economic toll from rising coronavirus cases nationwide were amplified by data showing elevated levels of unemployment claims. .N
At 11:52 ET, the Dow Jones Industrial Average .DJI was down 0.49% at 26,739.34. The S&P 500 .SPX was down 0.69% at 3,204.39 and the Nasdaq Composite .IXIC was down 1.48% at 10,393.902. The top three S&P 500 .PG.INX percentage gainers: ** Hartford Financial Services Group , up 5.7% ** Packaging Corporation of America , up 4.5% ** Mohawk Industries Inc , up 4.5% The top three S&P 500 .PL.INX percentage losers: ** Norwegian Cruise Line Holdings Ltd , down 11.8% ** Carnival Corp , down 7.3% ** American Airlines Group Inc , down 6.3% The top three NYSE .PG.N percentage gainers: ** Itau Corpbanca , up 47.5% ** AgEagle Aerial Systems Inc , up 31.8% ** Oblong Inc , up 29% The top two NYSE .PL.N percentage losers: ** Norwegian Cruise Line Holdings Ltd , down 11.8% ** Leju Holdings Ltd , down 9.8% The top three Nasdaq .PG.O percentage gainers: ** InnerWorkings Inc , up 119.7% ** Boxlight Corp , up 70.2% ** Lion Group , up 56.7% The top three Nasdaq .PL.O percentage losers: ** Tricida Inc , down 37.9% ** Wisekey International Holding AG , down 20.5% ** CLPS Inc , down 17.5% ** American Airlines AAL.O: down 6.2% BUZZ-Warns 25,000 workers of potential furloughs ** Tesla TSLA.O: down 4.0% BUZZ-Set to snap two-day winning streak ** Farmmi Inc FAMI.O: up 7.1% BUZZ-Surges on new mushroom supply order ** Inmune Bio INMB.O: down 17.1% BUZZ-Inmune Bio falls on planned stock offering ** Carnival Corp CCL.N: down 7.3% ** Norwegian Cruise Line NCLH.N: down 11.8% BUZZ-Carnival, Norwegian Cruise Line fall on new debt offerings ** Barrick Gold GOLD.N: down 1.8%
BUZZ-U.S.-listed Barrick Gold falls on lower Q2 output expectations ** Walt Disney Co DIS.N: down 1.6%
BUZZ-Cowen and Co downgrades Disney over prolonged impact on Parks and Films ** Lannett Company LCI.N: up 10.8%
BUZZ-Rises on exclusive distribution deal for levothyroxine ** Alcoa AA.N: up 7.3%
BUZZ-Alcoa rises on smaller-than-expected loss, record bauxite production ** KVH Industries KVHI.O: up 4.7%
BUZZ-Jumps on $10 mln order ** Atreca BCEL.O: down 17.4%
BUZZ-Immunotherapy biotech Atreca slides on $125 mln share offering ** Inmune Bio INMB.O: down 17.1%
BUZZ-Inmune Bio falls after pricing deep-discounted stock offering ** Penske PAG.N: up 4.0%
BUZZ-Rises as co sees upbeat Q2 results due to cost cuts ** Secoo Holding SECO.O: down 6.9%
BUZZ-Falls after quarterly results disappoint ** Colony Capital CLNY.N: down 16.5%
BUZZ-Mortgage REIT Colony Capital slides on planned $200 mln convertible debt deal ** Future Fintech FTFT.O: up 10.8%
BUZZ-Soars on deal to buy 90% stake in HK-based asset manager ** Heartland Express HTLD.O: up 5.6%
BUZZ-Rises on Q2 results beat ** Badger Meter Inc BMI.N: down 5.4%
BUZZ-Drops after results miss estimates ** AC Immune ACIU.O: up 50.8%
BUZZ-Surges on advancing Alzheimer's vaccine study ** RealPage RP.O: up 3.0% BUZZ-Gains on expectations to beat Q2 targets ** Hartford Financial HIG.N: up 5.7% BUZZ-Jumps on upbeat prelim Q2 profit ** Lowe's LOW.N: up 1.1% BUZZ-Rises as Piper Sandler raises PT, says 'perfect storm' ahead
The 11 major S&P 500 sectors:
Communication Services
.SPLRCL
down 0.77%
Consumer Discretionary
.SPLRCD
down 1.05%
Consumer Staples
.SPLRCS
up 0.02%
Energy
.SPNY
up 0.51%
Financial
.SPSY
up 0.33%
Health
.SPXHC
down 0.80%
Industrial
.SPLRCI
up 0.15%
Information Technology
.SPLRCT
down 1.64%
Materials
.SPLRCM
up 0.40%
Real Estate
.SPLRCR
down 1.12%
Utilities
.SPLRCU
up 0.95%
(Compiled by Bharath Manjesh in Bengaluru)
((Bharath.ManjeshR@thomsonreuters.com; outside U.S. +91 80 6749 2703;))
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: ** Hartford Financial Services Group , up 5.7% ** Packaging Corporation of America , up 4.5% ** Mohawk Industries Inc , up 4.5% The top three S&P 500 .PL.INX percentage losers: ** Norwegian Cruise Line Holdings Ltd , down 11.8% ** Carnival Corp , down 7.3% ** American Airlines Group Inc , down 6.3% The top three NYSE .PG.N percentage gainers: ** Itau Corpbanca , up 47.5% ** AgEagle Aerial Systems Inc , up 31.8% ** Oblong Inc , up 29% The top two NYSE .PL.N percentage losers: ** Norwegian Cruise Line Holdings Ltd , down 11.8% ** Leju Holdings Ltd , down 9.8% The top three Nasdaq .PG.O percentage gainers: ** InnerWorkings Inc , up 119.7% ** Boxlight Corp , up 70.2% ** Lion Group , up 56.7% The top three Nasdaq .PL.O percentage losers: ** Tricida Inc , down 37.9% ** Wisekey International Holding AG , down 20.5% ** CLPS Inc , down 17.5% ** American Airlines AAL.O: down 6.2% BUZZ-Warns 25,000 workers of potential furloughs ** Tesla TSLA.O: down 4.0% BUZZ-Set to snap two-day winning streak ** Farmmi Inc FAMI.O: up 7.1% BUZZ-Surges on new mushroom supply order ** Inmune Bio INMB.O: down 17.1% BUZZ-Inmune Bio falls on planned stock offering ** Carnival Corp CCL.N: down 7.3% ** Norwegian Cruise Line NCLH.N: down 11.8% BUZZ-Carnival, Norwegian Cruise Line fall on new debt offerings ** Barrick Gold GOLD.N: down 1.8% BUZZ-U.S.-listed Barrick Gold falls on lower Q2 output expectations ** Walt Disney Co DIS.N: down 1.6% BUZZ-Cowen and Co downgrades Disney over prolonged impact on Parks and Films ** Lannett Company LCI.N: up 10.8% BUZZ-Rises on exclusive distribution deal for levothyroxine ** Alcoa AA.N: up 7.3% BUZZ-Alcoa rises on smaller-than-expected loss, record bauxite production ** KVH Industries KVHI.O: up 4.7% BUZZ-Jumps on $10 mln order ** Atreca BCEL.O: down 17.4% BUZZ-Immunotherapy biotech Atreca slides on $125 mln share offering ** Inmune Bio INMB.O: down 17.1% BUZZ-Inmune Bio falls after pricing deep-discounted stock offering ** Penske PAG.N: up 4.0% BUZZ-Rises as co sees upbeat Q2 results due to cost cuts ** Secoo Holding SECO.O: down 6.9% BUZZ-Falls after quarterly results disappoint ** Colony Capital CLNY.N: down 16.5% BUZZ-Mortgage REIT Colony Capital slides on planned $200 mln convertible debt deal ** Future Fintech FTFT.O: up 10.8% BUZZ-Soars on deal to buy 90% stake in HK-based asset manager ** Heartland Express HTLD.O: up 5.6% BUZZ-Rises on Q2 results beat ** Badger Meter Inc BMI.N: down 5.4% BUZZ-Drops after results miss estimates ** AC Immune ACIU.O: up 50.8% BUZZ-Surges on advancing Alzheimer's vaccine study ** RealPage RP.O: up 3.0% BUZZ-Gains on expectations to beat Q2 targets ** Hartford Financial HIG.N: up 5.7% BUZZ-Jumps on upbeat prelim Q2 profit ** Lowe's LOW.N: up 1.1% BUZZ-Rises as Piper Sandler raises PT, says 'perfect storm' ahead 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 Wall Street's main indexes fell on Thursday with the S&P 500 slipping from a five-week high as concerns about the economic toll from rising coronavirus cases nationwide were amplified by data showing elevated levels of unemployment claims. up 0.95% (Compiled by Bharath Manjesh in Bengaluru) ((Bharath.ManjeshR@thomsonreuters.com; outside U.S. +91 80 6749 2703;)) 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: ** Hartford Financial Services Group , up 5.7% ** Packaging Corporation of America , up 4.5% ** Mohawk Industries Inc , up 4.5% The top three S&P 500 .PL.INX percentage losers: ** Norwegian Cruise Line Holdings Ltd , down 11.8% ** Carnival Corp , down 7.3% ** American Airlines Group Inc , down 6.3% The top three NYSE .PG.N percentage gainers: ** Itau Corpbanca , up 47.5% ** AgEagle Aerial Systems Inc , up 31.8% ** Oblong Inc , up 29% The top two NYSE .PL.N percentage losers: ** Norwegian Cruise Line Holdings Ltd , down 11.8% ** Leju Holdings Ltd , down 9.8% The top three Nasdaq .PG.O percentage gainers: ** InnerWorkings Inc , up 119.7% ** Boxlight Corp , up 70.2% ** Lion Group , up 56.7% The top three Nasdaq .PL.O percentage losers: ** Tricida Inc , down 37.9% ** Wisekey International Holding AG , down 20.5% ** CLPS Inc , down 17.5% ** American Airlines AAL.O: down 6.2% BUZZ-Warns 25,000 workers of potential furloughs ** Tesla TSLA.O: down 4.0% BUZZ-Set to snap two-day winning streak ** Farmmi Inc FAMI.O: up 7.1% BUZZ-Surges on new mushroom supply order ** Inmune Bio INMB.O: down 17.1% BUZZ-Inmune Bio falls on planned stock offering ** Carnival Corp CCL.N: down 7.3% ** Norwegian Cruise Line NCLH.N: down 11.8% BUZZ-Carnival, Norwegian Cruise Line fall on new debt offerings ** Barrick Gold GOLD.N: down 1.8% BUZZ-U.S.-listed Barrick Gold falls on lower Q2 output expectations ** Walt Disney Co DIS.N: down 1.6% BUZZ-Cowen and Co downgrades Disney over prolonged impact on Parks and Films ** Lannett Company LCI.N: up 10.8% BUZZ-Rises on exclusive distribution deal for levothyroxine ** Alcoa AA.N: up 7.3% BUZZ-Alcoa rises on smaller-than-expected loss, record bauxite production ** KVH Industries KVHI.O: up 4.7% BUZZ-Jumps on $10 mln order ** Atreca BCEL.O: down 17.4% BUZZ-Immunotherapy biotech Atreca slides on $125 mln share offering ** Inmune Bio INMB.O: down 17.1% BUZZ-Inmune Bio falls after pricing deep-discounted stock offering ** Penske PAG.N: up 4.0% BUZZ-Rises as co sees upbeat Q2 results due to cost cuts ** Secoo Holding SECO.O: down 6.9% BUZZ-Falls after quarterly results disappoint ** Colony Capital CLNY.N: down 16.5% BUZZ-Mortgage REIT Colony Capital slides on planned $200 mln convertible debt deal ** Future Fintech FTFT.O: up 10.8% BUZZ-Soars on deal to buy 90% stake in HK-based asset manager ** Heartland Express HTLD.O: up 5.6% BUZZ-Rises on Q2 results beat ** Badger Meter Inc BMI.N: down 5.4% BUZZ-Drops after results miss estimates ** AC Immune ACIU.O: up 50.8% BUZZ-Surges on advancing Alzheimer's vaccine study ** RealPage RP.O: up 3.0% BUZZ-Gains on expectations to beat Q2 targets ** Hartford Financial HIG.N: up 5.7% BUZZ-Jumps on upbeat prelim Q2 profit ** Lowe's LOW.N: up 1.1% BUZZ-Rises as Piper Sandler raises PT, says 'perfect storm' ahead 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 Wall Street's main indexes fell on Thursday with the S&P 500 slipping from a five-week high as concerns about the economic toll from rising coronavirus cases nationwide were amplified by data showing elevated levels of unemployment claims. up 0.95% (Compiled by Bharath Manjesh in Bengaluru) ((Bharath.ManjeshR@thomsonreuters.com; outside U.S. +91 80 6749 2703;)) 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: ** Hartford Financial Services Group , up 5.7% ** Packaging Corporation of America , up 4.5% ** Mohawk Industries Inc , up 4.5% The top three S&P 500 .PL.INX percentage losers: ** Norwegian Cruise Line Holdings Ltd , down 11.8% ** Carnival Corp , down 7.3% ** American Airlines Group Inc , down 6.3% The top three NYSE .PG.N percentage gainers: ** Itau Corpbanca , up 47.5% ** AgEagle Aerial Systems Inc , up 31.8% ** Oblong Inc , up 29% The top two NYSE .PL.N percentage losers: ** Norwegian Cruise Line Holdings Ltd , down 11.8% ** Leju Holdings Ltd , down 9.8% The top three Nasdaq .PG.O percentage gainers: ** InnerWorkings Inc , up 119.7% ** Boxlight Corp , up 70.2% ** Lion Group , up 56.7% The top three Nasdaq .PL.O percentage losers: ** Tricida Inc , down 37.9% ** Wisekey International Holding AG , down 20.5% ** CLPS Inc , down 17.5% ** American Airlines AAL.O: down 6.2% BUZZ-Warns 25,000 workers of potential furloughs ** Tesla TSLA.O: down 4.0% BUZZ-Set to snap two-day winning streak ** Farmmi Inc FAMI.O: up 7.1% BUZZ-Surges on new mushroom supply order ** Inmune Bio INMB.O: down 17.1% BUZZ-Inmune Bio falls on planned stock offering ** Carnival Corp CCL.N: down 7.3% ** Norwegian Cruise Line NCLH.N: down 11.8% BUZZ-Carnival, Norwegian Cruise Line fall on new debt offerings ** Barrick Gold GOLD.N: down 1.8% BUZZ-U.S.-listed Barrick Gold falls on lower Q2 output expectations ** Walt Disney Co DIS.N: down 1.6% BUZZ-Cowen and Co downgrades Disney over prolonged impact on Parks and Films ** Lannett Company LCI.N: up 10.8% BUZZ-Rises on exclusive distribution deal for levothyroxine ** Alcoa AA.N: up 7.3% BUZZ-Alcoa rises on smaller-than-expected loss, record bauxite production ** KVH Industries KVHI.O: up 4.7% BUZZ-Jumps on $10 mln order ** Atreca BCEL.O: down 17.4% BUZZ-Immunotherapy biotech Atreca slides on $125 mln share offering ** Inmune Bio INMB.O: down 17.1% BUZZ-Inmune Bio falls after pricing deep-discounted stock offering ** Penske PAG.N: up 4.0% BUZZ-Rises as co sees upbeat Q2 results due to cost cuts ** Secoo Holding SECO.O: down 6.9% BUZZ-Falls after quarterly results disappoint ** Colony Capital CLNY.N: down 16.5% BUZZ-Mortgage REIT Colony Capital slides on planned $200 mln convertible debt deal ** Future Fintech FTFT.O: up 10.8% BUZZ-Soars on deal to buy 90% stake in HK-based asset manager ** Heartland Express HTLD.O: up 5.6% BUZZ-Rises on Q2 results beat ** Badger Meter Inc BMI.N: down 5.4% BUZZ-Drops after results miss estimates ** AC Immune ACIU.O: up 50.8% BUZZ-Surges on advancing Alzheimer's vaccine study ** RealPage RP.O: up 3.0% BUZZ-Gains on expectations to beat Q2 targets ** Hartford Financial HIG.N: up 5.7% BUZZ-Jumps on upbeat prelim Q2 profit ** Lowe's LOW.N: up 1.1% BUZZ-Rises as Piper Sandler raises PT, says 'perfect storm' ahead The 11 major S&P 500 sectors: Communication Services down 0.77% Consumer Discretionary down 1.05% Consumer Staples
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The top three S&P 500 .PG.INX percentage gainers: ** Hartford Financial Services Group , up 5.7% ** Packaging Corporation of America , up 4.5% ** Mohawk Industries Inc , up 4.5% The top three S&P 500 .PL.INX percentage losers: ** Norwegian Cruise Line Holdings Ltd , down 11.8% ** Carnival Corp , down 7.3% ** American Airlines Group Inc , down 6.3% The top three NYSE .PG.N percentage gainers: ** Itau Corpbanca , up 47.5% ** AgEagle Aerial Systems Inc , up 31.8% ** Oblong Inc , up 29% The top two NYSE .PL.N percentage losers: ** Norwegian Cruise Line Holdings Ltd , down 11.8% ** Leju Holdings Ltd , down 9.8% The top three Nasdaq .PG.O percentage gainers: ** InnerWorkings Inc , up 119.7% ** Boxlight Corp , up 70.2% ** Lion Group , up 56.7% The top three Nasdaq .PL.O percentage losers: ** Tricida Inc , down 37.9% ** Wisekey International Holding AG , down 20.5% ** CLPS Inc , down 17.5% ** American Airlines AAL.O: down 6.2% BUZZ-Warns 25,000 workers of potential furloughs ** Tesla TSLA.O: down 4.0% BUZZ-Set to snap two-day winning streak ** Farmmi Inc FAMI.O: up 7.1% BUZZ-Surges on new mushroom supply order ** Inmune Bio INMB.O: down 17.1% BUZZ-Inmune Bio falls on planned stock offering ** Carnival Corp CCL.N: down 7.3% ** Norwegian Cruise Line NCLH.N: down 11.8% BUZZ-Carnival, Norwegian Cruise Line fall on new debt offerings ** Barrick Gold GOLD.N: down 1.8% BUZZ-U.S.-listed Barrick Gold falls on lower Q2 output expectations ** Walt Disney Co DIS.N: down 1.6% BUZZ-Cowen and Co downgrades Disney over prolonged impact on Parks and Films ** Lannett Company LCI.N: up 10.8% BUZZ-Rises on exclusive distribution deal for levothyroxine ** Alcoa AA.N: up 7.3% BUZZ-Alcoa rises on smaller-than-expected loss, record bauxite production ** KVH Industries KVHI.O: up 4.7% BUZZ-Jumps on $10 mln order ** Atreca BCEL.O: down 17.4% BUZZ-Immunotherapy biotech Atreca slides on $125 mln share offering ** Inmune Bio INMB.O: down 17.1% BUZZ-Inmune Bio falls after pricing deep-discounted stock offering ** Penske PAG.N: up 4.0% BUZZ-Rises as co sees upbeat Q2 results due to cost cuts ** Secoo Holding SECO.O: down 6.9% BUZZ-Falls after quarterly results disappoint ** Colony Capital CLNY.N: down 16.5% BUZZ-Mortgage REIT Colony Capital slides on planned $200 mln convertible debt deal ** Future Fintech FTFT.O: up 10.8% BUZZ-Soars on deal to buy 90% stake in HK-based asset manager ** Heartland Express HTLD.O: up 5.6% BUZZ-Rises on Q2 results beat ** Badger Meter Inc BMI.N: down 5.4% BUZZ-Drops after results miss estimates ** AC Immune ACIU.O: up 50.8% BUZZ-Surges on advancing Alzheimer's vaccine study ** RealPage RP.O: up 3.0% BUZZ-Gains on expectations to beat Q2 targets ** Hartford Financial HIG.N: up 5.7% BUZZ-Jumps on upbeat prelim Q2 profit ** Lowe's LOW.N: up 1.1% BUZZ-Rises as Piper Sandler raises PT, says 'perfect storm' ahead 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 Wall Street's main indexes fell on Thursday with the S&P 500 slipping from a five-week high as concerns about the economic toll from rising coronavirus cases nationwide were amplified by data showing elevated levels of unemployment claims. .N At 11:52 ET, the Dow Jones Industrial Average .DJI was down 0.49% at 26,739.34.
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5506.0
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2020-07-16 00:00:00 UTC
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S&P 500 Falling: Airline Stocks, Cruise Stocks Crashing as 1.3 Million More File for Unemployment, Bank of America Prepares for Long Recession
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AAL
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https://www.nasdaq.com/articles/sp-500-falling%3A-airline-stocks-cruise-stocks-crashing-as-1.3-million-more-file-for
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nan
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nan
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The S&P 500 Index (SNPINDEX: ^GSPC) fell 11 points or 0.3% on July 16, breaking a two-day positive streak as Bank of America (NYSE: BAC) reported second quarter earnings and the U.S. Department of Labor said another 1.3 million people filed for unemployment last week.
Today's biggest losers are the same stocks that delivered big gains for investors yesterday: airlines, cruise lines, hotels, casinos, and travel and leisure booking companies. In short, it's looking like investors are coming back down to earth after so much excitement around Moderna's (NASDAQ: MRNA) potential coronavirus vaccine that's still many months -- and perhaps longer -- away.
Bank of America earnings: Consumer spending is improving, but still preparing for a bad recession
Image source: Getty Images.
America's second-biggest bank by assets, Bank of America, reported second quarter results before market open today, with net income falling by half to $3.5 billion. The universal bank -- meaning it does both commercial lending and investment banking services -- said non-interest income was up 5% due to capital markets activity on the investing side, and that deposits increased 21%.
So why the big drop in profits? Bank of America joined its megabank peers Wells Fargo (NYSE: WFC), CitiGroup (NYSE: C), and JPMorgan Chase (NYSE: JPM) in taking large loan loss provisions. On Monday, the three above announced a combined $28 billion in loan loss provisions, while Bank of America took $5.1 billion in loss provisions against loans it expects could default in the near future. Also like its peers, this was a substantially larger amount of provisions than it took one year ago.
So while executives were relatively optimistic on theearnings call pointing out that consumer spending was improving from the low point, their actions to prepare the balance sheet for a protracted downturn speaks volumes. In the market's typical "shoot the messenger" behavior, Bank of America's stock is falling today, losing more value than its megabank peers (even though it took smaller loss provisions than the others):
BAC data by YCharts
Cruise stocks sink, airlines losing altitude
After reporting double-digit gains yesterday, Royal Caribbean Cruises (NYSE: RCL), Carnival Corp (NYSE: CCL), and Norwegian Cruise Line Holdings Ltd (NYSE: NCLH) shares are down 6.7%, 8.7%, and 13.5% today. This marks a sharp reversal from yesterday's 16%-plus gains for all three stocks, driven by investors coming to grips with the reality today that the economy is in terrible shape and the ongoing crisis isn't going to get resolved overnight.
Simply put, cruise lines are still full of risk, burning gobs of cash, and facing minimal prospects for a quick recovery. Airline stocks similarly fell after big gains one day prior.
AIRLINE STOCK PRICE CHANGE ON 7/16/20
American Airlines Group (NASDAQ: AAL) (8%)
United Airlines (NASDAQ: UAL) (5.8%)
Delta Airlines (NYSE: DAL) (4.8%)
Alaska Air (NYSE: ALK) (3.7%)
Southwest Airlines (NYSE: LUV) (4.6%)
Data source: Fidelity.
The airline industry has a tough road ahead, and things could actually get worse. American is saying it could furlough as many as 25,000 workers if conditions don't improve substantially in the next several months. Airlines have not cut large numbers of jobs so far, not because they have needed the workers, but because they could not do so and remain within the terms of the government lifelines they have received. But those deals are set to expire, and airline workers are likely to start joining the ranks of the unemployed in big numbers in the second half of the year.
Joining the airlines in the move lower today is Boeing (NYSE: BA) as the troubled company faces a steady threat of airlines canceling orders for new aircraft. Despite big long-term demand for new aircraft, Boeing's struggles with the 737 MAX have come at the worst time for the company, which is struggling to keep its order book filled as the downturn persists.
Healthcare earnings: Abbott, J&J beat expectations
Healthcare giants Abbott Labs (NYSE: ABT) and Johnson & Johnson (NYSE: JNJ) reported second quarter results today. Both saw profits decline in the quarter, but they still managed to beat expectations.
Abbott reported $7.3 billion in revenue, down 8.2%, but well above the expected $6.75 billion, and adjusted earnings of 0.57 per share, down 30% but well above the expected $0.41 per share. The company pointed to a combination of foreign exchange fluctuations and the impact of the coronavirus pandemic on sales and profits, but also said that growth in diagnostics sales, up 4.7%, was in part due to a 10% surge in rapid diagnostics sales.
Johnson & Johnson had a tougher second quarter. Revenue fell almost 11%, and earnings of $1.36 per share were down 35%. Management is working to contain variable expenses like sales and marketing, which it wasn't able to flex lower as quickly as revenues fell in the quarter. For the full year, the company is now calling for sales to fall as much as 2.6%, and for earnings between $7.50 and $7.90 per share, which would be down between 8.4% and 10.7% from last year.
Coming up: Netflix, Trains, and Automobiles
Streaming giant Netflix's (NASDAQ: NFLX)earnings callis happening as these words are being written; the stock is down double-digits in after-hours trading, so it looks like investors are "selling the news." Tune back in here tomorrow for a deep dive from our Netflix experts.
Railway operator Kansas City Southern (NYSE: KSU) is set to report earnings tomorrow, July 17, marking the first of the S&P 500's four railways to report.
Another after-market reporter today is J.B. Hunt (NASDAQ: JBHT). The trucking company said sales fell 5% in the second quarter, while operating income fell 9% and earnings of $1.14 per share was down 7%. In an ugly quarter for consumer demand, those results aren't too shabby in the ultra-competitive trucking industry. Check back soon for a closer look at the company's results, and expectations going forward.
10 stocks we like better than Bank of America
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 Bank of America 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 June 2, 2020
Jason Hall owns shares of Bank of America, Southwest Airlines, and Wells Fargo. The Motley Fool owns shares of and recommends Netflix. The Motley Fool recommends Alaska Air Group, Carnival, Delta Air Lines, Johnson & Johnson, 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) (8%) United Airlines (NASDAQ: UAL) (5.8%) Delta Airlines (NYSE: DAL) (4.8%) Alaska Air (NYSE: ALK) (3.7%) Southwest Airlines (NYSE: LUV) (4.6%) Data source: Fidelity. The S&P 500 Index (SNPINDEX: ^GSPC) fell 11 points or 0.3% on July 16, breaking a two-day positive streak as Bank of America (NYSE: BAC) reported second quarter earnings and the U.S. Department of Labor said another 1.3 million people filed for unemployment last week. Today's biggest losers are the same stocks that delivered big gains for investors yesterday: airlines, cruise lines, hotels, casinos, and travel and leisure booking companies.
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American Airlines Group (NASDAQ: AAL) (8%) United Airlines (NASDAQ: UAL) (5.8%) Delta Airlines (NYSE: DAL) (4.8%) Alaska Air (NYSE: ALK) (3.7%) Southwest Airlines (NYSE: LUV) (4.6%) Data source: Fidelity. Healthcare earnings: Abbott, J&J beat expectations Healthcare giants Abbott Labs (NYSE: ABT) and Johnson & Johnson (NYSE: JNJ) reported second quarter results today. The Motley Fool recommends Alaska Air Group, Carnival, Delta Air Lines, Johnson & Johnson, and Southwest Airlines.
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American Airlines Group (NASDAQ: AAL) (8%) United Airlines (NASDAQ: UAL) (5.8%) Delta Airlines (NYSE: DAL) (4.8%) Alaska Air (NYSE: ALK) (3.7%) Southwest Airlines (NYSE: LUV) (4.6%) Data source: Fidelity. In the market's typical "shoot the messenger" behavior, Bank of America's stock is falling today, losing more value than its megabank peers (even though it took smaller loss provisions than the others): BAC data by YCharts Cruise stocks sink, airlines losing altitude After reporting double-digit gains yesterday, Royal Caribbean Cruises (NYSE: RCL), Carnival Corp (NYSE: CCL), and Norwegian Cruise Line Holdings Ltd (NYSE: NCLH) shares are down 6.7%, 8.7%, and 13.5% today. Healthcare earnings: Abbott, J&J beat expectations Healthcare giants Abbott Labs (NYSE: ABT) and Johnson & Johnson (NYSE: JNJ) reported second quarter results today.
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American Airlines Group (NASDAQ: AAL) (8%) United Airlines (NASDAQ: UAL) (5.8%) Delta Airlines (NYSE: DAL) (4.8%) Alaska Air (NYSE: ALK) (3.7%) Southwest Airlines (NYSE: LUV) (4.6%) Data source: Fidelity. In the market's typical "shoot the messenger" behavior, Bank of America's stock is falling today, losing more value than its megabank peers (even though it took smaller loss provisions than the others): BAC data by YCharts Cruise stocks sink, airlines losing altitude After reporting double-digit gains yesterday, Royal Caribbean Cruises (NYSE: RCL), Carnival Corp (NYSE: CCL), and Norwegian Cruise Line Holdings Ltd (NYSE: NCLH) shares are down 6.7%, 8.7%, and 13.5% today. The trucking company said sales fell 5% in the second quarter, while operating income fell 9% and earnings of $1.14 per share was down 7%.
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2020-07-16 00:00:00 UTC
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Dow Snaps Winning Streak; Tech Continues to Slide
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https://www.nasdaq.com/articles/dow-snaps-winning-streak-tech-continues-to-slide-2020-07-16
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The Dow closed 135 points lower, breaking its four-day winning streak, as Microsoft (MSFT) and Apple (AAPL) both traded down. FAANG stocks have been having a rough week, leading the Nasdaq firmly below fair value today, with the S&P 500 in the red as well. Disappointing weekly jobless claims data has been no help to the indexes either, though, retail sales did jump 7.5% for June, topping analyst expectations. Globally, equities suffered as stocks in China reported a major sell-off. Meanwhile, investors are looking ahead at Netflix (NFLX) earnings, which are due out after the close.
Calls took off for big bank stock following earnings.
Cruise stock crumbles on million-dollar offering.
Plus, social media giant dips after high-profile hack; discount retailer draws bull note; and a look at this airline ahead of earnings.
The Dow Jones Industrial Average (DJI - 26,734.71) dropped 135.4 points, or 0.5% for the day. Walgreen Boots Alliance (WBA) rose to the top of the Dow, finishing 1.6% higher, while Boeing (BA) fell to the bottom, losing 4.9%.
Meanwhile, the S&P 500 Index (SPX - 3,215.57) fell 11 points, or 0.3% for the day. The Nasdaq Composite (IXIC - 10,473.83) lost 76.7 points, or 0.7% for today's session.
Meanwhile, the Cboe Volatility Index (VIX - 28.00) gained 0.2 point, or 0.9%, for the day.
5 Items on Our Radar Today
Senate democrats unveiled a $350 billion investment proposal to infuse into Black communities for both immediate and long-term use. $200 billion of the investment would come from unused funds left over from the CARES Act, the $2 trillion Federal stimulus package from March. (CNBC)
As various states navigate the resurgence of coronavirus, Georgia Governor Brian Kemp is banning cities and counties from requiring masks in public spaces. Mask orders had been covering 1.4 million of Georgia's residents through local officials. (MarketWatch)
Twitter stock trades lower after hackers compromise accounts.
Dollar Tree stock topples resistance following upgrade.
Looking at United Airlines' rocky few months ahead of earnings.
Data courtesy of Trade-Alert
Oil, Gold Finish Lower Amid Uncertainty
One day after the OPEC+ decision, oil futures ended lower, wary of the decline in global equities. August-dated crude fell 45 cents, or 1.1%, to settle at $40.75 a barrel.
Gold futures ended lower today, as the U.S. dollar looked to make a rebound. Gold for August delivery fell $13.50, or 0.7%, the lowest finish in more than a week, to settle at $1,800.30 an ounce.
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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Plus, social media giant dips after high-profile hack; discount retailer draws bull note; and a look at this airline ahead of earnings. Walgreen Boots Alliance (WBA) rose to the top of the Dow, finishing 1.6% higher, while Boeing (BA) fell to the bottom, losing 4.9%. (CNBC) As various states navigate the resurgence of coronavirus, Georgia Governor Brian Kemp is banning cities and counties from requiring masks in public spaces.
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The Dow closed 135 points lower, breaking its four-day winning streak, as Microsoft (MSFT) and Apple (AAPL) both traded down. Data courtesy of Trade-Alert Oil, Gold Finish Lower Amid Uncertainty One day after the OPEC+ decision, oil futures ended lower, wary of the decline in global equities. Gold futures ended lower today, as the U.S. dollar looked to make a rebound.
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The Dow closed 135 points lower, breaking its four-day winning streak, as Microsoft (MSFT) and Apple (AAPL) both traded down. FAANG stocks have been having a rough week, leading the Nasdaq firmly below fair value today, with the S&P 500 in the red as well. Data courtesy of Trade-Alert Oil, Gold Finish Lower Amid Uncertainty One day after the OPEC+ decision, oil futures ended lower, wary of the decline in global equities.
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The Dow Jones Industrial Average (DJI - 26,734.71) dropped 135.4 points, or 0.5% for the day. Meanwhile, the S&P 500 Index (SPX - 3,215.57) fell 11 points, or 0.3% for the day. Data courtesy of Trade-Alert Oil, Gold Finish Lower Amid Uncertainty One day after the OPEC+ decision, oil futures ended lower, wary of the decline in global equities.
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5508.0
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2020-07-16 00:00:00 UTC
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EMERGING MARKETS-Stocks slip on U.S.-China worries, firm dollar hits FX
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https://www.nasdaq.com/articles/emerging-markets-stocks-slip-on-u.s.-china-worries-firm-dollar-hits-fx-2020-07-16
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By Shreyashi Sanyal
July 16 (Reuters) - Emerging market stocks fell to a one-week low on Thursday as tensions between the United States and China and rising coronavirus cases around the world weighed on investor sentiment, while a stronger dollar hit risky currencies.
A broad dispute between Washington and Beijing over the control of advanced technologies and the protection of civil liberties in Hong Kong continued to hit risk appetite.
"The focus currently lies in Hong Kong, but there are fears that the trade dispute between the two superpowers could flare up again at any time," analysts at AxiCorp wrote in a client note.
It also took the shine off data which showed China's economy rebounded more than expected in the second quarter from a record contraction.
While emerging market equities have recovered sharply from a steep downturn in March, surging COVID-19 cases in hotspots like Brazil, India and Russia constantly serve as a reality check for investors hoping for a "V"-shaped recovery.
The MSCI's index for developing world stocks .MSCIEF dropped 1.6%, after rising in the previous session on signs of progress in the development of a coronavirus vaccine. The index is now on track for its first weekly decline in three weeks.
"The market reaction to progress on the vaccine shows how critical it is for broader risk appetite to find a cure. The market's definitive shift to 'risk-on' during Q2 was primarily predicated on an economic splurge alongside an emergence from lockdowns," analysts at AxiCorp wrote.
South African stocks .JTOPI slid 2%, with declines from global miner Anglo American AGLJ.JAAL.L weighing.
Anglo American posted an 18% decline in overall second quarter output due to coronavirus lockdowns and stuck to its full-year guidance for copper, other metals and diamonds.
The rand ZAR= slipped 0.5% against the U.S. dollar, which strengthened amid growth concerns and weak Chinese consumption data. FRX/
Russia's rouble RUB= weakened with a slide in oil prices, while the Turkish lira TRY= traded within a tight range.
Turkish stocks .XU100 rose 1.3%, among few advancers on the day as shares in Turkish Airlines THYAO.IS and budget carrier Pegasus Airlines PGSUS.IS rose more than 3% after Turkey and Russia agreed to resume flights.
Currencies of countries in central and eastern Europe remained rangebound, with Hungary EURHUF=, Poland EURPLN= and Romania EURRON= trading flat against the euro.
For GRAPHIC on emerging market FX performance in 2020, see http://tmsnrt.rs/2egbfVh
For GRAPHIC on MSCI emerging index performance in 2020, see https://tmsnrt.rs/2OusNdX
For TOP NEWS across emerging markets
For CENTRAL EUROPE market report, see CEE/
For TURKISH market report, see .IS
For RUSSIAN market report, see RU/RUB
(Reporting by Shreyashi Sanyal in Bengaluru; Editing by Shailesh Kuber)
((Shreyashi.Sanyal@thomsonreuters.com; +1 646 223 8780; +91 961 144 3740; Twitter: https://twitter.com/s_shreyashi;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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South African stocks .JTOPI slid 2%, with declines from global miner Anglo American AGLJ.JAAL.L weighing. By Shreyashi Sanyal July 16 (Reuters) - Emerging market stocks fell to a one-week low on Thursday as tensions between the United States and China and rising coronavirus cases around the world weighed on investor sentiment, while a stronger dollar hit risky currencies. A broad dispute between Washington and Beijing over the control of advanced technologies and the protection of civil liberties in Hong Kong continued to hit risk appetite.
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South African stocks .JTOPI slid 2%, with declines from global miner Anglo American AGLJ.JAAL.L weighing. By Shreyashi Sanyal July 16 (Reuters) - Emerging market stocks fell to a one-week low on Thursday as tensions between the United States and China and rising coronavirus cases around the world weighed on investor sentiment, while a stronger dollar hit risky currencies. The MSCI's index for developing world stocks .MSCIEF dropped 1.6%, after rising in the previous session on signs of progress in the development of a coronavirus vaccine.
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South African stocks .JTOPI slid 2%, with declines from global miner Anglo American AGLJ.JAAL.L weighing. By Shreyashi Sanyal July 16 (Reuters) - Emerging market stocks fell to a one-week low on Thursday as tensions between the United States and China and rising coronavirus cases around the world weighed on investor sentiment, while a stronger dollar hit risky currencies. Turkish stocks .XU100 rose 1.3%, among few advancers on the day as shares in Turkish Airlines THYAO.IS and budget carrier Pegasus Airlines PGSUS.IS rose more than 3% after Turkey and Russia agreed to resume flights.
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South African stocks .JTOPI slid 2%, with declines from global miner Anglo American AGLJ.JAAL.L weighing. A broad dispute between Washington and Beijing over the control of advanced technologies and the protection of civil liberties in Hong Kong continued to hit risk appetite. "The focus currently lies in Hong Kong, but there are fears that the trade dispute between the two superpowers could flare up again at any time," analysts at AxiCorp wrote in a client note.
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2020-07-16 00:00:00 UTC
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U.S. airlines would accept new bailout without additional strings -- trade group
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https://www.nasdaq.com/articles/u.s.-airlines-would-accept-new-bailout-without-additional-strings-trade-group-2020-07-16
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WASHINGTON, July 16 (Reuters) - A trade group representing major U.S. airlines said Thursday it is not actively seeking new government assistance but would accept new bailout funds as long as new strings were attached.
A spokeswoman for Airlines for America, a trade group representing Delta Air Lines DAL.N, United Airlines UAL.O and American Airlines AAL.O, Southwest Airlines LUV.N and other major airlines said "if Congress opts to enact the labor-requested proposal, we would support our workforce’s decision to pursue a simple and clean extension of the grants as long as no additional or extraneous conditions are required."
Major airline unions last month asked for another $32 billion in payroll assistance for airlines and contractors to keep workers employed through at least March 31.
(Reporting by David Shepardson, Editing by Franklin Paul)
((David.Shepardson@thomsonreuters.com; 2028988324;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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A spokeswoman for Airlines for America, a trade group representing Delta Air Lines DAL.N, United Airlines UAL.O and American Airlines AAL.O, Southwest Airlines LUV.N and other major airlines said "if Congress opts to enact the labor-requested proposal, we would support our workforce’s decision to pursue a simple and clean extension of the grants as long as no additional or extraneous conditions are required." WASHINGTON, July 16 (Reuters) - A trade group representing major U.S. airlines said Thursday it is not actively seeking new government assistance but would accept new bailout funds as long as new strings were attached. Major airline unions last month asked for another $32 billion in payroll assistance for airlines and contractors to keep workers employed through at least March 31.
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A spokeswoman for Airlines for America, a trade group representing Delta Air Lines DAL.N, United Airlines UAL.O and American Airlines AAL.O, Southwest Airlines LUV.N and other major airlines said "if Congress opts to enact the labor-requested proposal, we would support our workforce’s decision to pursue a simple and clean extension of the grants as long as no additional or extraneous conditions are required." WASHINGTON, July 16 (Reuters) - A trade group representing major U.S. airlines said Thursday it is not actively seeking new government assistance but would accept new bailout funds as long as new strings were attached. Major airline unions last month asked for another $32 billion in payroll assistance for airlines and contractors to keep workers employed through at least March 31.
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A spokeswoman for Airlines for America, a trade group representing Delta Air Lines DAL.N, United Airlines UAL.O and American Airlines AAL.O, Southwest Airlines LUV.N and other major airlines said "if Congress opts to enact the labor-requested proposal, we would support our workforce’s decision to pursue a simple and clean extension of the grants as long as no additional or extraneous conditions are required." WASHINGTON, July 16 (Reuters) - A trade group representing major U.S. airlines said Thursday it is not actively seeking new government assistance but would accept new bailout funds as long as new strings were attached. (Reporting by David Shepardson, Editing by Franklin Paul) ((David.Shepardson@thomsonreuters.com; 2028988324;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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A spokeswoman for Airlines for America, a trade group representing Delta Air Lines DAL.N, United Airlines UAL.O and American Airlines AAL.O, Southwest Airlines LUV.N and other major airlines said "if Congress opts to enact the labor-requested proposal, we would support our workforce’s decision to pursue a simple and clean extension of the grants as long as no additional or extraneous conditions are required." WASHINGTON, July 16 (Reuters) - A trade group representing major U.S. airlines said Thursday it is not actively seeking new government assistance but would accept new bailout funds as long as new strings were attached. Major airline unions last month asked for another $32 billion in payroll assistance for airlines and contractors to keep workers employed through at least March 31.
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5510.0
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2020-07-16 00:00:00 UTC
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Why Airline Stocks Are Sinking (Again) on Thursday
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https://www.nasdaq.com/articles/why-airline-stocks-are-sinking-again-on-thursday-2020-07-16
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What happened
Investors curbed their enthusiasm over airline stocks Thursday, after Wednesday's coronavirus vaccine-inspired monster run-up in such shares.
In trading yesterday, shares of United Airlines (NASDAQ: UAL) soared more than 14% and American Airlines (NASDAQ: AAL) gained 16%. Discount airline Spirit (NYSE: SAVE) notched a 12% gain, and even Delta Air Lines (NYSE: DAL) -- burdened by bad news earlier in the week -- closed 9.5% higher.
Today, though, what went up is coming back down.
Image source: Getty Images.
So what
In early trading Thursday, circa 11:11 a.m. EDT, United is giving back 3.9% and Spirit 4.7%. Delta's down 5.1%, and American stock -- the biggest winner yesterday -- is leading the industry lower with a 5.9% loss.
Why? In part at least (perhaps a large part), I see this as investors locking in profits in a topsy-turvy market for airline stocks. Few industries have been as volatile as airlines throughout the coronavirus pandemic, as investors scatter in fear of bankruptcy concerns one day, only to coalesce and buy back shares hand over fist on any news that might suggest a "return to normal" is imminent.
Yesterday was one of those latter kinds of days, with vaccine maker Moderna announcing optimistic results from trials of its new coronavirus vaccine. The observation that "100% of evaluated participants" in the trial produced "neutralizing antibodies" in response to Moderna's vaccine sounded especially propitious.
Now what
Today, however, we're moving in the opposite direction. For one thing, investors may be selling shares to lock in yesterday's windfall profits, on the (historically sound) assumption that the stocks will get cheaper again, allowing them a chance to buy back in at a later date.
At the same time, there's a bit of bad news weighing on airline shares today, with The Wall Street Journal, for example, highlighting airline industry layoffs in an above-the-fold column today -- 25,000 job cuts just announced at American for example, and another 36,000 job losses in the offing at United, all because "air-travel demand falls again amid climbing coronavirus numbers." Meanwhile, Johns Hopkins University is reporting that global COVID-19 infections just hit a record for a one-day increase.
With news like that, I can't really blame investors for ensuring their yesterday profits don't disappear -- or fault their logic in thinking there will be more chances to buy back airline shares at lower prices, as bad news continues to follow good, day in and day out, ad infinitum.
Such is the life of an airline stocks investor.
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 June 2, 2020
Rich Smith has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Spirit Airlines. 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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In trading yesterday, shares of United Airlines (NASDAQ: UAL) soared more than 14% and American Airlines (NASDAQ: AAL) gained 16%. Few industries have been as volatile as airlines throughout the coronavirus pandemic, as investors scatter in fear of bankruptcy concerns one day, only to coalesce and buy back shares hand over fist on any news that might suggest a "return to normal" is imminent. For one thing, investors may be selling shares to lock in yesterday's windfall profits, on the (historically sound) assumption that the stocks will get cheaper again, allowing them a chance to buy back in at a later date.
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In trading yesterday, shares of United Airlines (NASDAQ: UAL) soared more than 14% and American Airlines (NASDAQ: AAL) gained 16%. Discount airline Spirit (NYSE: SAVE) notched a 12% gain, and even Delta Air Lines (NYSE: DAL) -- burdened by bad news earlier in the week -- closed 9.5% higher. With news like that, I can't really blame investors for ensuring their yesterday profits don't disappear -- or fault their logic in thinking there will be more chances to buy back airline shares at lower prices, as bad news continues to follow good, day in and day out, ad infinitum.
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In trading yesterday, shares of United Airlines (NASDAQ: UAL) soared more than 14% and American Airlines (NASDAQ: AAL) gained 16%. At the same time, there's a bit of bad news weighing on airline shares today, with The Wall Street Journal, for example, highlighting airline industry layoffs in an above-the-fold column today -- 25,000 job cuts just announced at American for example, and another 36,000 job losses in the offing at United, all because "air-travel demand falls again amid climbing coronavirus numbers." With news like that, I can't really blame investors for ensuring their yesterday profits don't disappear -- or fault their logic in thinking there will be more chances to buy back airline shares at lower prices, as bad news continues to follow good, day in and day out, ad infinitum.
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In trading yesterday, shares of United Airlines (NASDAQ: UAL) soared more than 14% and American Airlines (NASDAQ: AAL) gained 16%. Such is the life of an airline stocks investor. That's right -- they think these 10 stocks are even better buys.
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5511.0
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2020-07-16 00:00:00 UTC
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Nasdaq Drops 100+ at the Open as American, United Hope for More Federal Aid for Airlines
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https://www.nasdaq.com/articles/nasdaq-drops-100-at-the-open-as-american-united-hope-for-more-federal-aid-for-airlines
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The stock market has been increasingly volatile, and even as major market benchmarks have recovered from their lows earlier this year, there are still big questions about what comes next for investors. The Nasdaq Composite (NASDAQINDEX: ^IXIC) isn't too far below its recent record highs. On Thursday, though, the Nasdaq was down more than 100 points right out of the gate, and the Nasdaq-100 Index also saw similar declines on a percentage basis.
Today's news that first-time claims for unemployment remained troublingly high didn't do much to inspire confidence that the economic damage caused by the COVID-19 pandemic will get fixed anytime soon. In fact, some companies are insisting that more assistance is necessary in order to prevent even more dire financial consequences. Among them are major airlines, with Nasdaq-listed American Airlines Group (NASDAQ: AAL) and United Airlines Holdings (NASDAQ: UAL) falling significantly to start Thursday's session.
The clock is ticking for airlines
American Airlines led the major carriers lower with a 5% drop in its stock Thursday morning, and United was close behind with a 4% decline. Even as the economy has started to reopen in many key states, the dramatic increase in COVID-19 case counts has brought back nagging doubts about how safe it is to fly to far-flung destinations. Airlines that are already under severe financial pressure are increasingly nervous about what that means for their hopes for a recovery in their businesses.
Image source: American Airlines.
For many, time is running out. American said Wednesday that it will potentially need to furlough as many as 25,000 workers starting in October if conditions don't markedly improve from here. Like most airlines, American has been working hard to get employees to accept voluntary packages like early retirement or contract buyouts. However, not enough workers have taken advantage of those packages, leaving airlines with little choice but to consider more extreme measures.
The federal aid packages that many airlines have already accepted are the only thing keeping the companies from taking action more quickly. Under the terms that the federal government set, airlines that accept federal money had to agree not to lay off workers through the end of September. With that deadline less than three months away, though, American's announcement is setting the stage for another wave of unemployment that could once again destabilize the U.S. economy.
Looking for more help
Unions representing airline employees understand the pressure that their employers are under, and that's why they've joined together to ask the federal government for more assistance. With more financial aid to airlines, union leaders hope that they can arrange to have their members remain employed through March 2021 under similar terms as the initial round of grants and loans to airlines.
American believes that the extra six months might be enough to outlast the pandemic. CEO Doug Parker expects much greater air travel demand by then, especially if efforts to accelerate development of a COVID-19 vaccine are successful.
In the meantime, though, airlines are also getting creative. On Thursday, American joined forces with JetBlue Airways (NASDAQ: JBLU) to share passengers and routes, with the idea of competing more effectively against United and Delta Air Lines (NYSE: DAL) in the Northeast. The move combines American's international reach with JetBlue's concentration in key hubs like New York City.
It's still far too early to tell whether efforts from American and its peers will be enough to survive the financial pressures from the pandemic. If air travel doesn't bounce back soon, though, there's a significant chance that airline stocks will have to resort to more aggressive measures to keep their businesses operating.
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 June 2, 2020
Dan Caplinger has no position in any of the stocks mentioned. The Motley Fool recommends Delta Air Lines 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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Among them are major airlines, with Nasdaq-listed American Airlines Group (NASDAQ: AAL) and United Airlines Holdings (NASDAQ: UAL) falling significantly to start Thursday's session. Today's news that first-time claims for unemployment remained troublingly high didn't do much to inspire confidence that the economic damage caused by the COVID-19 pandemic will get fixed anytime soon. Even as the economy has started to reopen in many key states, the dramatic increase in COVID-19 case counts has brought back nagging doubts about how safe it is to fly to far-flung destinations.
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Among them are major airlines, with Nasdaq-listed American Airlines Group (NASDAQ: AAL) and United Airlines Holdings (NASDAQ: UAL) falling significantly to start Thursday's session. Under the terms that the federal government set, airlines that accept federal money had to agree not to lay off workers through the end of September. The Motley Fool recommends Delta Air Lines and JetBlue Airways.
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Among them are major airlines, with Nasdaq-listed American Airlines Group (NASDAQ: AAL) and United Airlines Holdings (NASDAQ: UAL) falling significantly to start Thursday's session. The clock is ticking for airlines American Airlines led the major carriers lower with a 5% drop in its stock Thursday morning, and United was close behind with a 4% decline. 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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Among them are major airlines, with Nasdaq-listed American Airlines Group (NASDAQ: AAL) and United Airlines Holdings (NASDAQ: UAL) falling significantly to start Thursday's session. If air travel doesn't bounce back soon, though, there's a significant chance that airline stocks will have to resort to more aggressive measures to keep their businesses operating. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.
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5512.0
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2020-07-16 00:00:00 UTC
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Jobless Claims Rise Again, Showing Continued Economic Damage From COVID-19
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https://www.nasdaq.com/articles/jobless-claims-rise-again-showing-continued-economic-damage-from-covid-19-2020-07-16
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Jobless claims for last week, ended July 11, came out to 1.3 million. This outpaced estimates of 1.25 million and shows continuing damage from the COVID-19 outbreak and subsequent economic disruption. The United States continues to see COVID-19 cases rise, which has put further doubt on the strength of the economic reopening.
As more state and federal authorities attempt to limit the spread of the virus, continued pressure is being applied to some specific industries. Pennsylvania for example, implemented rules Thursday governing the sale of alcohol in bars and restaurants. The move puts limits on restaurant capacity and put a block on alcohol sales that aren't ordered with food. The exception is alcohol ordered to go. This is one example of an industry that will be hard pressed to maintain full staff during the current climate.
Image Source: Getty Images
As coronavirus counts rise, it seems likely that industries will continue to face unconventional challenges. In that climate, stores, restaurants, and bars will have a tough time maintaining revenues, let alone staff. Coastal tourism areas are seeing issues as beaches in hard hit states like Texas are being closed to fight social congregation. That cutoff to tourism and socializing puts a direct hit on the hospitality industry. In turn, certain parts of the country seem likely to face continued layoffs.
Outside of hospitality, larger industries like the airlines seem likely to contribute greatly to the unemployment data. American Airlines (NASDAQ: AAL) warned yesterday that up to 25,000 jobs could be cut this year. It's worth noting that terms of financial aid from the government prohibits American Airlines from making labor force cuts until this fall. While that helps provide some time, it also indicates that there could be further pain in the labor market through the second half of the year.
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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 (NASDAQ: AAL) warned yesterday that up to 25,000 jobs could be cut this year. As more state and federal authorities attempt to limit the spread of the virus, continued pressure is being applied to some specific industries. Coastal tourism areas are seeing issues as beaches in hard hit states like Texas are being closed to fight social congregation.
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American Airlines (NASDAQ: AAL) warned yesterday that up to 25,000 jobs could be cut this year. The move puts limits on restaurant capacity and put a block on alcohol sales that aren't ordered with food. That cutoff to tourism and socializing puts a direct hit on the hospitality industry.
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American Airlines (NASDAQ: AAL) warned yesterday that up to 25,000 jobs could be cut this year. The move puts limits on restaurant capacity and put a block on alcohol sales that aren't ordered with food. 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 (NASDAQ: AAL) warned yesterday that up to 25,000 jobs could be cut this year. The United States continues to see COVID-19 cases rise, which has put further doubt on the strength of the economic reopening. The move puts limits on restaurant capacity and put a block on alcohol sales that aren't ordered with food.
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5513.0
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2020-07-16 00:00:00 UTC
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S&P 500 slides from five-week high on fears over rising COVID-19 cases
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https://www.nasdaq.com/articles/sp-500-slides-from-five-week-high-on-fears-over-rising-covid-19-cases-2020-07-16
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By Medha Singh and Devik Jain
July 16 (Reuters) - The S&P 500 slipped from a five-week high on Thursday as concerns about the economic toll from rising coronavirus cases nationwide were heightened by data showing elevated levels of unemployment claims.
U.S. retail sales increased more than expected in June, but a resurgence in new COVID-19 cases is chipping at the budding recovery, keeping 32 million Americans on unemployment benefits.
The jump in domestic case loads has forced states such as California to shut down again, sparking fears of more business damage and slowing the pace of a Wall Street rally. The S&P 500 is about 5.8% away from its record high hit in February.
"The spike in COVID-19 cases across the country is raising a concern that if they continue to rise, what would it mean for the economy and potential shutdowns," said Stan Gregor, chief executive officer of Summit Financial LLC in Parsippany, New Jersey.
The S&P 500 has exceeded the Nasdaq by about 3 percentage points over the past week, its greatest five-day outperformance over the Nasdaq since late March, reflecting a shift away from Amazon.com AMZN.O, Microsoft Inc MSFT.O and other major technology companies that have led Wall Street's gains in recent months.
Utilities .SPLRCU, industrials .SPLRCI and materials .SPLRCM were in favor among the major S&P sectors on Thursday.
"This is an early indication of good signs that money is now flowing away from completely overbought Nasdaq into those names that will bode well when the economy starts finding more of a solid footing," said Andrew Smith, chief investment strategist at Dallas, Texas-based Delos Capital Advisors.
Twitter Inc TWTR.N fell 1.1% as hackers accessed its internal systems to hijack some of the platform's top voices including U.S. presidential candidate Joe Biden, reality TV star Kim Kardashian West, former U.S. President Barack Obama and billionaire Elon Musk and used them to solicit digital currency.
At 12:47 p.m. ET, the Dow Jones Industrial Average .DJIwas down 147.48 points, or 0.55%, at 26,722.62, the S&P 500 .SPXwas down 18.90 points, or 0.59%, at 3,207.66. The Nasdaq Composite .IXICwas down 117.90 points, or 1.12%, at 10,432.59.
Rounding up earnings reports of big banks, Bank of America Corp BAC.N fell 2.4% after its second-quarter profit more than halved, while Morgan Stanley MS.N rose 2.2% after posting a record quarterly profit.
American Airlines AAL.O dropped 6.7% as it sent 25,000 notices of potential furloughs to frontline workers and warned that demand for air travel is slowing again.
Tesla Inc TSLA.O slipped 2.4% as its vehicle registrations nearly halved in the U.S. state of California during the second quarter, according to data from a marketing research firm.
Declining issues outnumbered advancers for a 1.31-to-1 ratio on the NYSE and for a 1.82-to-1 ratio on the Nasdaq.
The S&P index recorded 29 new 52-week highs and no new low, while the Nasdaq recorded 68 new highs and 10 new lows.
(Reporting by Medha Singh and Devik Jain in Bengaluru; Editing by Maju Samuel)
((Devik.Jain@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 6182 2062; ;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines AAL.O dropped 6.7% as it sent 25,000 notices of potential furloughs to frontline workers and warned that demand for air travel is slowing again. By Medha Singh and Devik Jain July 16 (Reuters) - The S&P 500 slipped from a five-week high on Thursday as concerns about the economic toll from rising coronavirus cases nationwide were heightened by data showing elevated levels of unemployment claims. "This is an early indication of good signs that money is now flowing away from completely overbought Nasdaq into those names that will bode well when the economy starts finding more of a solid footing," said Andrew Smith, chief investment strategist at Dallas, Texas-based Delos Capital Advisors.
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American Airlines AAL.O dropped 6.7% as it sent 25,000 notices of potential furloughs to frontline workers and warned that demand for air travel is slowing again. By Medha Singh and Devik Jain July 16 (Reuters) - The S&P 500 slipped from a five-week high on Thursday as concerns about the economic toll from rising coronavirus cases nationwide were heightened by data showing elevated levels of unemployment claims. The S&P index recorded 29 new 52-week highs and no new low, while the Nasdaq recorded 68 new highs and 10 new lows.
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American Airlines AAL.O dropped 6.7% as it sent 25,000 notices of potential furloughs to frontline workers and warned that demand for air travel is slowing again. By Medha Singh and Devik Jain July 16 (Reuters) - The S&P 500 slipped from a five-week high on Thursday as concerns about the economic toll from rising coronavirus cases nationwide were heightened by data showing elevated levels of unemployment claims. The S&P 500 has exceeded the Nasdaq by about 3 percentage points over the past week, its greatest five-day outperformance over the Nasdaq since late March, reflecting a shift away from Amazon.com AMZN.O, Microsoft Inc MSFT.O and other major technology companies that have led Wall Street's gains in recent months.
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American Airlines AAL.O dropped 6.7% as it sent 25,000 notices of potential furloughs to frontline workers and warned that demand for air travel is slowing again. By Medha Singh and Devik Jain July 16 (Reuters) - The S&P 500 slipped from a five-week high on Thursday as concerns about the economic toll from rising coronavirus cases nationwide were heightened by data showing elevated levels of unemployment claims. ET, the Dow Jones Industrial Average .DJIwas down 147.48 points, or 0.55%, at 26,722.62, the S&P 500 .SPXwas down 18.90 points, or 0.59%, at 3,207.66.
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5514.0
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2020-07-16 00:00:00 UTC
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American, JetBlue team up to boost New York flying and drive recovery
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AAL
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https://www.nasdaq.com/articles/american-jetblue-team-up-to-boost-new-york-flying-and-drive-recovery-2020-07-16
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By Tracy Rucinski
CHICAGO, July 16 (Reuters) - American Airlines AAL.O and JetBlue Airways JBLU.O said on Thursday they were forming a strategic partnership to boost flying options in New York and Boston and create what executives called a "growth engine" to recover from the COVID-19 pandemic.
The deal, which allows the two carriers to sell each other's flights and link frequent flyer programs, gives them more muscle against rivals United Airlines UAL.O and Delta Air Lines DAL.N in the Northeast at a time when carriers are preparing to downsize and cut jobs.
It makes American "a more-powerful player in the country's economic center," said Scott Mayerowitz at the Points Guy, helping it to fill international flights and compete for lucrative corporate contracts without investing in a network of domestic routes.
For starters, American will use the partnership to feed traffic out of New York (JFK) to international destinations including Tel Aviv, Athens and Rio de Janeiro in 2021.
That will increase nonstop flying options to Israel, where before the pandemic United was offering twice daily service from Newark and Delta daily from JFK. Struggling Israeli carrier El Al Israel Airlines ELAL.TA was flying out of JFK and Newark but has suspended all flights through August and is negotiating a government bailout.
JetBlue, which has similar partnerships with other airlines but whose expansion aspirations have suffered from space and government limitations in New York, will add flights at all three New York area airports including its home base, JFK.
"This allows us to recover more quickly," Scott Laurence, JetBlue's head of revenue and planning, told Reuters. "It means that airplanes that would otherwise have been in a desert, they're going to be flying and generating revenue."
Discussions began before the coronavirus pandemic nearly ground the aviation industry to a halt this year, but accelerated as a result of the crisis, he said.
The deal - subject to governmental review - will help American, which has a significant presence across the middle of the country, gain relevance in New York and Boston, said American's chief revenue officer, Vasu Raja.
It follows American's revived partnership with Seattle-based Alaska Airlines ALKAIR.UL in February to boost expansion opportunities out of the West Coast.
Alaska is due to join the oneworld alliance led by American and British Airways by summer 2021, but JetBlue is not joining and still plans to independently launch and operate transatlantic flights to London in 2021.
(Reporting by Tracy Rucinski. Additional reporting by Steven Scheer in Jerusalem. Editing by Gerry Doyle and Tom Brown)
((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, July 16 (Reuters) - American Airlines AAL.O and JetBlue Airways JBLU.O said on Thursday they were forming a strategic partnership to boost flying options in New York and Boston and create what executives called a "growth engine" to recover from the COVID-19 pandemic. It makes American "a more-powerful player in the country's economic center," said Scott Mayerowitz at the Points Guy, helping it to fill international flights and compete for lucrative corporate contracts without investing in a network of domestic routes. For starters, American will use the partnership to feed traffic out of New York (JFK) to international destinations including Tel Aviv, Athens and Rio de Janeiro in 2021.
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By Tracy Rucinski CHICAGO, July 16 (Reuters) - American Airlines AAL.O and JetBlue Airways JBLU.O said on Thursday they were forming a strategic partnership to boost flying options in New York and Boston and create what executives called a "growth engine" to recover from the COVID-19 pandemic. That will increase nonstop flying options to Israel, where before the pandemic United was offering twice daily service from Newark and Delta daily from JFK. Struggling Israeli carrier El Al Israel Airlines ELAL.TA was flying out of JFK and Newark but has suspended all flights through August and is negotiating a government bailout.
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By Tracy Rucinski CHICAGO, July 16 (Reuters) - American Airlines AAL.O and JetBlue Airways JBLU.O said on Thursday they were forming a strategic partnership to boost flying options in New York and Boston and create what executives called a "growth engine" to recover from the COVID-19 pandemic. JetBlue, which has similar partnerships with other airlines but whose expansion aspirations have suffered from space and government limitations in New York, will add flights at all three New York area airports including its home base, JFK. The deal - subject to governmental review - will help American, which has a significant presence across the middle of the country, gain relevance in New York and Boston, said American's chief revenue officer, Vasu Raja.
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By Tracy Rucinski CHICAGO, July 16 (Reuters) - American Airlines AAL.O and JetBlue Airways JBLU.O said on Thursday they were forming a strategic partnership to boost flying options in New York and Boston and create what executives called a "growth engine" to recover from the COVID-19 pandemic. Struggling Israeli carrier El Al Israel Airlines ELAL.TA was flying out of JFK and Newark but has suspended all flights through August and is negotiating a government bailout. JetBlue, which has similar partnerships with other airlines but whose expansion aspirations have suffered from space and government limitations in New York, will add flights at all three New York area airports including its home base, JFK.
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5515.0
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2020-07-16 00:00:00 UTC
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Wall St ends lower on COVID-19 worries, tech weighs
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AAL
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https://www.nasdaq.com/articles/wall-st-ends-lower-on-covid-19-worries-tech-weighs-2020-07-16-0
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By Noel Randewich
July 16 (Reuters) - The S&P 500 dropped on Thursday, pulled lower by Microsoft Corp MSFT.O and Apple Inc AAPL.O, as elevated levels of unemployment claims heightened concerns about the economic toll from rising coronavirus cases.
U.S. retail sales increased more than expected in June, but a resurgence in new COVID-19 cases is undercutting the budding recovery, keeping 32 million Americans on unemployment benefits.
A jump in cases of the virus has forced California and other states to shut down again, sparking fears of more business damage and slowing the pace of a Wall Street rally. The S&P 500 is about 5% below its February record high.
"The economic data shows there is still a challenge going forward," said Willie Delwiche, an investment strategist at Baird in Milwaukee. "Congress better get its act together and pass another fiscal stimulus."
The S&P real estate .SPLRCR and technology .SPLRCT indexes each lost more than 1%, more than any others.
Apple declined 1.2% and Microsoft lost 2%, each weighing more than any other company on the S&P 500.
The S&P 500 has exceeded the Nasdaq by nearly 3 percentage points over the past week, its greatest five-day outperformance over the Nasdaq since late March, reflecting a shift away from Amazon.com AMZN.O, Microsoft and other major technology companies that have led Wall Street's gains in recent months.
"This is an early indication of good signs that money is now flowing away from completely overbought Nasdaq into those names that will bode well when the economy starts finding more of a solid footing," said Andrew Smith, chief investment strategist at Dallas, Texas-based Delos Capital Advisors.
Twitter Inc TWTR.N fell 1.1% after hackers accessed its internal systems to hijack some of the platform's top voices, including U.S. presidential candidate Joe Biden, reality TV star Kim Kardashian West, former U.S. President Barack Obama and billionaire Elon Musk and used them to solicit digital currency.
In extended trade, Netflix NFLX.O tumbled 10% after the streaming video service's quarterly report.
The Dow Jones Industrial Average .DJI fell 0.5% to end at 26,734.71 points, while the S&P 500 .SPX lost 0.34% to 3,215.57.
The Nasdaq Composite .IXIC dropped 0.73%, to 10,473.83.
Rounding up earnings reports of big banks, Bank of America Corp BAC.Nfell 2.7% after its second-quarter profit more than halved, while Morgan Stanley MS.N rose 2.5% after posting a record quarterly profit.
American Airlines AAL.O tumbled 7.4% after it sent 25,000 notices of potential furloughs to frontline workers and warned that demand for air travel is slowing again.
Tesla Inc TSLA.O declined nearly 3% after its vehicle registrations nearly halved in the U.S. state of California during the second quarter, according to data from a marketing research firm.
Declining issues outnumbered advancing ones on the NYSE by a 1.26-to-1 ratio; on Nasdaq, a 1.48-to-1 ratio favored decliners.
The S&P 500 posted 30 new 52-week highs and no new lows; the Nasdaq Composite recorded 76 new highs and 14 new lows.
Volume on U.S. exchanges was 9.6 billion shares, compared with the 11.7 billion average for the full session over the last 20 trading days.
(Additional reporting by Medha Singh and Devik Jain in Bengaluru Editing by Marguerita Choy)
((noel.randewich@tr.com; (415) 677 2542; Reuters Messaging: Twitter: @randewich))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines AAL.O tumbled 7.4% after it sent 25,000 notices of potential furloughs to frontline workers and warned that demand for air travel is slowing again. By Noel Randewich July 16 (Reuters) - The S&P 500 dropped on Thursday, pulled lower by Microsoft Corp MSFT.O and Apple Inc AAPL.O, as elevated levels of unemployment claims heightened concerns about the economic toll from rising coronavirus cases. "This is an early indication of good signs that money is now flowing away from completely overbought Nasdaq into those names that will bode well when the economy starts finding more of a solid footing," said Andrew Smith, chief investment strategist at Dallas, Texas-based Delos Capital Advisors.
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American Airlines AAL.O tumbled 7.4% after it sent 25,000 notices of potential furloughs to frontline workers and warned that demand for air travel is slowing again. Apple declined 1.2% and Microsoft lost 2%, each weighing more than any other company on the S&P 500. Rounding up earnings reports of big banks, Bank of America Corp BAC.Nfell 2.7% after its second-quarter profit more than halved, while Morgan Stanley MS.N rose 2.5% after posting a record quarterly profit.
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American Airlines AAL.O tumbled 7.4% after it sent 25,000 notices of potential furloughs to frontline workers and warned that demand for air travel is slowing again. The S&P 500 has exceeded the Nasdaq by nearly 3 percentage points over the past week, its greatest five-day outperformance over the Nasdaq since late March, reflecting a shift away from Amazon.com AMZN.O, Microsoft and other major technology companies that have led Wall Street's gains in recent months. The S&P 500 posted 30 new 52-week highs and no new lows; the Nasdaq Composite recorded 76 new highs and 14 new lows.
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American Airlines AAL.O tumbled 7.4% after it sent 25,000 notices of potential furloughs to frontline workers and warned that demand for air travel is slowing again. U.S. retail sales increased more than expected in June, but a resurgence in new COVID-19 cases is undercutting the budding recovery, keeping 32 million Americans on unemployment benefits. Apple declined 1.2% and Microsoft lost 2%, each weighing more than any other company on the S&P 500.
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5516.0
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2020-07-16 00:00:00 UTC
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Thursday Sector Laggards: Industrial, Healthcare
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https://www.nasdaq.com/articles/thursday-sector-laggards%3A-industrial-healthcare-2020-07-16
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In afternoon trading on Thursday, Industrial stocks are the worst performing sector, showing a 0.7% loss. Within the sector, Norwegian Cruise Line Holdings Ltd (Symbol: NCLH) and American Airlines Group Inc (Symbol: AAL) are two of the day's laggards, showing a loss of 13.2% and 6.8%, respectively. Among industrial ETFs, one ETF following the sector is the Industrial Select Sector SPDR ETF (Symbol: XLI), which is flat on the day on the day, and down 11.34% year-to-date. Norwegian Cruise Line Holdings Ltd, meanwhile, is down 72.50% year-to-date, and American Airlines Group Inc, is down 55.96% year-to-date. AAL makes up approximately 0.3% of the underlying holdings of XLI.
The next worst performing sector is the Healthcare sector, showing a 0.6% loss. Among large Healthcare stocks, Incyte Corporation (Symbol: INCY) and Cooper Companies, Inc. (Symbol: COO) are the most notable, showing a loss of 2.9% and 2.2%, respectively. One ETF closely tracking Healthcare stocks is the Health Care Select Sector SPDR ETF (XLV), which is down 0.6% in midday trading, and up 2.90% on a year-to-date basis. Incyte Corporation, meanwhile, is up 15.94% year-to-date, and Cooper Companies, Inc. , is down 9.67% year-to-date. Combined, INCY and COO make up approximately 0.8% of the underlying holdings of XLV.
Comparing these stocks and ETFs on a trailing twelve month basis, below is a relative stock price performance chart, with each of the symbols shown in a different color as labeled in the legend at the bottom:
Here's a snapshot of how the S&P 500 components within the various sectors are faring in afternoon trading on Thursday. As you can see, three sectors are up on the day, while five sectors are down.
SECTOR % CHANGE
Utilities +0.5%
Consumer Products +0.2%
Energy +0.1%
Materials 0.0%
Services -0.1%
Financial -0.3%
Technology & Communications -0.4%
Healthcare -0.6%
Industrial -0.7%
25 Dividend Giants Widely Held By ETFs »
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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Within the sector, Norwegian Cruise Line Holdings Ltd (Symbol: NCLH) and American Airlines Group Inc (Symbol: AAL) are two of the day's laggards, showing a loss of 13.2% and 6.8%, respectively. AAL makes up approximately 0.3% of the underlying holdings of XLI. In afternoon trading on Thursday, Industrial stocks are the worst performing sector, showing a 0.7% loss.
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Within the sector, Norwegian Cruise Line Holdings Ltd (Symbol: NCLH) and American Airlines Group Inc (Symbol: AAL) are two of the day's laggards, showing a loss of 13.2% and 6.8%, respectively. AAL makes up approximately 0.3% of the underlying holdings of XLI. Among industrial ETFs, one ETF following the sector is the Industrial Select Sector SPDR ETF (Symbol: XLI), which is flat on the day on the day, and down 11.34% year-to-date.
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Within the sector, Norwegian Cruise Line Holdings Ltd (Symbol: NCLH) and American Airlines Group Inc (Symbol: AAL) are two of the day's laggards, showing a loss of 13.2% and 6.8%, respectively. AAL makes up approximately 0.3% of the underlying holdings of XLI. Among industrial ETFs, one ETF following the sector is the Industrial Select Sector SPDR ETF (Symbol: XLI), which is flat on the day on the day, and down 11.34% year-to-date.
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Within the sector, Norwegian Cruise Line Holdings Ltd (Symbol: NCLH) and American Airlines Group Inc (Symbol: AAL) are two of the day's laggards, showing a loss of 13.2% and 6.8%, respectively. AAL makes up approximately 0.3% of the underlying holdings of XLI. In afternoon trading on Thursday, Industrial stocks are the worst performing sector, showing a 0.7% loss.
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5517.0
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2020-07-16 00:00:00 UTC
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UK Stocks-Factors to watch on July 16
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https://www.nasdaq.com/articles/uk-stocks-factors-to-watch-on-july-16-2020-07-16-0
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Adds futures, news items
July 16 (Reuters) - Britain's FTSE 100 .FTSE index is seen opening 20 points lower at 6,273 on Thursday, according to financial bookmakers, with futures FFIc1 down 0.5% ahead of cash markets open.
* GVC: Ladbrokes and bwin owner GVC Holdings GVC.L announced the departure of Chief Executive Officer Kenny Alexander, after 13 years at the helm.
* ANGLO AMERICAN: Global miner Anglo American AAL.L stuck to its full-year guidance for metals, including copper and diamonds, as it posted lower second quarter output.
* HAYS: Hays HAYS.L, one of the world's biggest recruiters, said its fourth-quarter net fees dropped 34% and also warned on annual operating profit.
* AVIVA: Aviva PLC AV.L said that it had completed the sale of its Asia and Middle East-focused Friends Provident International business
* EXPERIAN: Experian EXPN.L, the world's biggest credit check company, reported a smaller-than-feared fall in organic revenue for the first quarter.
* RBS: Royal Bank of Scotland RBS.L will formally change its name to NatWest Group on July 22, in a move aimed at distancing the state-backed lender from its government bailout.
* SSE: British renewable power generator and network operator SSE Plc SSE.L said it will stick with plans to invest 7.5 billion pounds ($9.4 billion) in low-carbon projects over the next five years.
* OIL: Oil prices slid after OPEC and allies such as Russia agreed to ease record supply curbs from August.
* GOLD: Gold prices held steady near a nine-year peak, as concerns over rising coronavirus cases and simmering U.S.-China tensions offset some silver linings from Chinese economic data.
* The UK blue-chip index .FTSE ended up 1.8% on Wednesday, as signs of progress in developing a COVID-19 vaccine bolstered hopes of a swift post-pandemic economic rebound.
* For more on the factors affecting European stocks, please click on: LIVE/
TODAY'S UK PAPERS > Financial Times PRESS/FT > Other business headlines PRESS/GB
(Reporting by Tapanjana Rudra)
((Tapanjana.Rudra@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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* ANGLO AMERICAN: Global miner Anglo American AAL.L stuck to its full-year guidance for metals, including copper and diamonds, as it posted lower second quarter output. * AVIVA: Aviva PLC AV.L said that it had completed the sale of its Asia and Middle East-focused Friends Provident International business * EXPERIAN: Experian EXPN.L, the world's biggest credit check company, reported a smaller-than-feared fall in organic revenue for the first quarter. * RBS: Royal Bank of Scotland RBS.L will formally change its name to NatWest Group on July 22, in a move aimed at distancing the state-backed lender from its government bailout.
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* ANGLO AMERICAN: Global miner Anglo American AAL.L stuck to its full-year guidance for metals, including copper and diamonds, as it posted lower second quarter output. * AVIVA: Aviva PLC AV.L said that it had completed the sale of its Asia and Middle East-focused Friends Provident International business * EXPERIAN: Experian EXPN.L, the world's biggest credit check company, reported a smaller-than-feared fall in organic revenue for the first quarter. * SSE: British renewable power generator and network operator SSE Plc SSE.L said it will stick with plans to invest 7.5 billion pounds ($9.4 billion) in low-carbon projects over the next five years.
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* ANGLO AMERICAN: Global miner Anglo American AAL.L stuck to its full-year guidance for metals, including copper and diamonds, as it posted lower second quarter output. Adds futures, news items July 16 (Reuters) - Britain's FTSE 100 .FTSE index is seen opening 20 points lower at 6,273 on Thursday, according to financial bookmakers, with futures FFIc1 down 0.5% ahead of cash markets open. * AVIVA: Aviva PLC AV.L said that it had completed the sale of its Asia and Middle East-focused Friends Provident International business * EXPERIAN: Experian EXPN.L, the world's biggest credit check company, reported a smaller-than-feared fall in organic revenue for the first quarter.
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* ANGLO AMERICAN: Global miner Anglo American AAL.L stuck to its full-year guidance for metals, including copper and diamonds, as it posted lower second quarter output. Adds futures, news items July 16 (Reuters) - Britain's FTSE 100 .FTSE index is seen opening 20 points lower at 6,273 on Thursday, according to financial bookmakers, with futures FFIc1 down 0.5% ahead of cash markets open. * GVC: Ladbrokes and bwin owner GVC Holdings GVC.L announced the departure of Chief Executive Officer Kenny Alexander, after 13 years at the helm.
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5518.0
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2020-07-16 00:00:00 UTC
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3 Things United Airlines Stock Bulls Need to Happen Soon
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https://www.nasdaq.com/articles/3-things-united-airlines-stock-bulls-need-to-happen-soon-2020-07-16
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The global economy is still reeling from the impact of the COVID-19 pandemic, and few industries have seen greater disruptions that the airline sector. With so many limitations on travel and the high costs of keeping planes safe for passengers and crew, United Airlines Holdings (NASDAQ: UAL) fell by more than 75% between January and mid-May.
Since then, though, United Airlines bulls have gotten a lot happier, and the share price has nearly doubled in just the past couple of months. Yet there's still plenty of uncertainty ahead for the company. Long-time investors will remember that United has had to resort to bankruptcy protection in the past, and as much as it's trying to avoid that fate this time around, there are factors beyond its control. Here's what United needs in order to keep itself in the air -- and keep shareholders enjoying a recovery in the airline stock.
1. Travel trends need to keep improving -- and not fall prey to a second wave
The first step for United on its way to a full recovery is for travelers to start booking flights again. The industry have started to see passenger counts bounce back in recent months, with average throughput at security checkpoints across the U.S. rising from less than 100,000 per day in April to more than 750,000 on July 12. That's a far cry from the nearly 2.7 million passengers at airports the same time last year, but it's still a huge amount of progress that has helped restore some confidence in United and its peers.
Image source: United.
Unfortunately, COVID-19 case counts are up dramatically in the U.S. in recent weeks. That has United and others worried about another long delay in restoring confidence among passengers, especially given that some state governments are imposing quarantine restrictions on those flying from areas that have seen dramatic increases in coronavirus outbreaks. If airline ticket buyers start feeling unsafe again, then they could stop flying and send United into a second tailspin from which it might not recover.
2. United needs not to sacrifice safety for cost-cutting
Building on that theme, United and its peers are under huge pressure to bring in as much in sales as possible while reducing costs to preserve capital. Financing has become expensive, and government assistance will only go so far.
However, United has to balance its desire to stem losses with its need to keep customers happy. For instance, United and American Airlines Group (NASDAQ: AAL) have been selling middle seats in an effort to boost capacity, rather than leaving them open to encourage greater distancing between passengers. By contrast, Delta Air Lines (NYSE: DAL) and Southwest Airlines (NYSE: LUV) extended empty middle-seat policies through the end of September. By bucking the trend, United is gambling that travelers won't mind middle seats in the middle of a pandemic. That's a risky move, especially with some competitors willing to forego that extra revenue to demonstrate their commitment to customers.
3. United has to find the right size
United is already setting the stage for dramatic workforce reductions. Although it can't impose layoffs until the end of September under the terms of the government assistance packages it received, United has already informed investors that it will cut thousands of administrative and management jobs in October. Crew furloughs could follow, especially if United can't get enough of its professionals to accept voluntary retirement packages.
United will also face the challenge of figuring out how to handle its fleet as it tries to anticipate what travel volume will look like years down the road. That'll be tough for the cash-strapped airline to handle, although it can expect aircraft manufacturers to offer generous terms to keep orders on the books. Whatever United can do to keep its options open as long as possible will help it in its recovery.
Holding altitude
United faces many of the same questions that every airline does right now, and there's only so much it can do to put itself in position to survive and thrive after the worst of the pandemic is behind us. If it can't figure out these three issues well, then the significant gains that the airline stock has enjoyed recently could reverse themselves once again.
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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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For instance, United and American Airlines Group (NASDAQ: AAL) have been selling middle seats in an effort to boost capacity, rather than leaving them open to encourage greater distancing between passengers. That has United and others worried about another long delay in restoring confidence among passengers, especially given that some state governments are imposing quarantine restrictions on those flying from areas that have seen dramatic increases in coronavirus outbreaks. Although it can't impose layoffs until the end of September under the terms of the government assistance packages it received, United has already informed investors that it will cut thousands of administrative and management jobs in October.
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For instance, United and American Airlines Group (NASDAQ: AAL) have been selling middle seats in an effort to boost capacity, rather than leaving them open to encourage greater distancing between passengers. With so many limitations on travel and the high costs of keeping planes safe for passengers and crew, United Airlines Holdings (NASDAQ: UAL) fell by more than 75% between January and mid-May. By contrast, Delta Air Lines (NYSE: DAL) and Southwest Airlines (NYSE: LUV) extended empty middle-seat policies through the end of September.
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For instance, United and American Airlines Group (NASDAQ: AAL) have been selling middle seats in an effort to boost capacity, rather than leaving them open to encourage greater distancing between passengers. Here's what United needs in order to keep itself in the air -- and keep shareholders enjoying a recovery in the airline stock. 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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For instance, United and American Airlines Group (NASDAQ: AAL) have been selling middle seats in an effort to boost capacity, rather than leaving them open to encourage greater distancing between passengers. Here's what United needs in order to keep itself in the air -- and keep shareholders enjoying a recovery in the airline stock. Unfortunately, COVID-19 case counts are up dramatically in the U.S. in recent weeks.
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5519.0
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2020-07-16 00:00:00 UTC
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U.S. stock futures fall as virus fears eclipse upbeat retail sales
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AAL
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https://www.nasdaq.com/articles/u.s.-stock-futures-fall-as-virus-fears-eclipse-upbeat-retail-sales-2020-07-16
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By Medha Singh and Devik Jain
July 16 (Reuters) - Wall Street was set to open lower on Thursday as concerns about the economic toll from another round of shutdowns across the United States offset data showing a higher-than-expected rise in domestic retail sales in June.
The Commerce Department's report showed retail sales jumped 7.5% last month compared with economists' forecast of 5%, signalling the economy was continuing to limp out of a coronavirus-driven slump as several states eased lockdowns from May.
But a recent surge in domestic COVID-19 cases has forced states such as California to shut down again, sparking fears of more business damage and slowing the pace of a Wall Street rally.
"Much of the easy lifting in both the equity markets and in the economy is mostly behind us," said Michael Hans, chief investment officer at Clarfeld Citizens Private Wealth in Greater New York Area.
"Especially as it relates to retail sales, the policy moving forward is important. What goes on at the end of the month with the pandemic unemployment assistance set to expire? How does that impact the recovery and how does the consumer fare?"
Millions are set to lose their unemployment checks on July 31 when the government stops paying an additional $600 per week to jobless self-employed people, gig workers and contractors who do not qualify for regular state unemployment benefits.
Another report from the Labor Department on Thursday showed weekly jobless claims fell to 1.30 million in the week ended July 11 from 1.31 million the previous week, but remain roughly double their highest point during the global financial crisis.
At 9:08 a.m. ET, Dow e-minis 1YMcv1were down 160 points, or 0.6% S&P 500 e-minis EScv1were down 18.75 points, or 0.58% and Nasdaq 100 e-minis NQcv1were down 112.25 points, or 1.05%.
Bank of America Corp BAC.N fell 2.9% in premarket trading after its second-quarter profit more than halved, even as it set aside only about half as much in reserves as some of its peers against a potential wave of defaults.
Twitter Inc TWTR.N fell 4% as hackers accessed its internal systems to hijack some of the platform's top voices including U.S. presidential candidate Joe Biden, reality TV star Kim Kardashian West, former U.S. President Barack Obama and billionaire Elon Musk and used them to solicit digital currency.
American Airlines AAL.O dropped 3.6% as it sent 25,000 notices of potential furloughs to frontline workers and warned that demand for air travel is slowing again.
Tesla Inc TSLA.O slipped 4.3% as its vehicle registrations nearly halved in the U.S. state of California during the second quarter, according to data from a marketing research firm.
(Reporting by Medha Singh and Devik Jain in Bengaluru; Editing by Maju Samuel)
((Devik.Jain@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 6182 2062; ;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines AAL.O dropped 3.6% as it sent 25,000 notices of potential furloughs to frontline workers and warned that demand for air travel is slowing again. By Medha Singh and Devik Jain July 16 (Reuters) - Wall Street was set to open lower on Thursday as concerns about the economic toll from another round of shutdowns across the United States offset data showing a higher-than-expected rise in domestic retail sales in June. The Commerce Department's report showed retail sales jumped 7.5% last month compared with economists' forecast of 5%, signalling the economy was continuing to limp out of a coronavirus-driven slump as several states eased lockdowns from May.
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American Airlines AAL.O dropped 3.6% as it sent 25,000 notices of potential furloughs to frontline workers and warned that demand for air travel is slowing again. By Medha Singh and Devik Jain July 16 (Reuters) - Wall Street was set to open lower on Thursday as concerns about the economic toll from another round of shutdowns across the United States offset data showing a higher-than-expected rise in domestic retail sales in June. The Commerce Department's report showed retail sales jumped 7.5% last month compared with economists' forecast of 5%, signalling the economy was continuing to limp out of a coronavirus-driven slump as several states eased lockdowns from May.
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American Airlines AAL.O dropped 3.6% as it sent 25,000 notices of potential furloughs to frontline workers and warned that demand for air travel is slowing again. By Medha Singh and Devik Jain July 16 (Reuters) - Wall Street was set to open lower on Thursday as concerns about the economic toll from another round of shutdowns across the United States offset data showing a higher-than-expected rise in domestic retail sales in June. Millions are set to lose their unemployment checks on July 31 when the government stops paying an additional $600 per week to jobless self-employed people, gig workers and contractors who do not qualify for regular state unemployment benefits.
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American Airlines AAL.O dropped 3.6% as it sent 25,000 notices of potential furloughs to frontline workers and warned that demand for air travel is slowing again. By Medha Singh and Devik Jain July 16 (Reuters) - Wall Street was set to open lower on Thursday as concerns about the economic toll from another round of shutdowns across the United States offset data showing a higher-than-expected rise in domestic retail sales in June. The Commerce Department's report showed retail sales jumped 7.5% last month compared with economists' forecast of 5%, signalling the economy was continuing to limp out of a coronavirus-driven slump as several states eased lockdowns from May.
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5520.0
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2020-07-16 00:00:00 UTC
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Wall St falls as virus fears eclipse upbeat retail report
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AAL
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https://www.nasdaq.com/articles/wall-st-falls-as-virus-fears-eclipse-upbeat-retail-report-2020-07-16
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nan
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By Medha Singh and Devik Jain
July 16 (Reuters) - U.S. stocks fell on Thursday with the S&P 500 retreating from a five-week high as concerns about the economic toll from another round of shutdowns across the United States offset data showing upbeat domestic retail sales in June.
The Commerce Department's report showed retail sales jumped 7.5% last month compared with economists' forecast of 5%, signaling the economy was continuing to limp out of a coronavirus-driven slump.
But a recent surge in domestic COVID-19 cases has forced states such as California to shut down again, sparking fears of more business damage and slowing the pace of a Wall Street rally.
"Much of the easy lifting in both the equity markets and in the economy is mostly behind us," said Michael Hans, chief investment officer at Clarfeld Citizens Private Wealth in Greater New York Area.
"Especially as it relates to retail sales, the policy moving forward is important. What goes on at the end of the month with the pandemic unemployment assistance set to expire? How does that impact the recovery and how does the consumer fare?"
Millions are set to lose their unemployment checks on July 31 when the government stops paying an additional $600 per week to jobless self-employed people, gig workers and contractors who do not qualify for regular state unemployment benefits.
Another report from the Labor Department on Thursday showed weekly jobless claims fell to 1.30 million in the week ended July 11, down slightly from the previous week but remain roughly double their highest point during the global financial crisis.
At 9:49 a.m. ET, the Dow Jones Industrial Average .DJIwas down 125.92 points, or 0.47%, at 26,744.18, the S&P 500 .SPXwas down 21.88 points, or 0.68%, at 3,204.68. The Nasdaq Composite .IXICwas down 116.37 points, or 1.10%, at 10,434.12.
Technology stocks weighed the most on all the three indexes. Among major S&P sectors, communication services .SPLRCS, technology .SPLRCT and energy .SPNY lagged the most.
Bank of America Corp BAC.N fell 3.8% after its second-quarter profit more than halved, while Morgan Stanley rose 1.6% after posting a record quarterly profit. [nL3N2EN322]
Twitter Inc TWTR.N fell 2.8% as hackers accessed its internal systems to hijack some of the platform's top voices including U.S. presidential candidate Joe Biden, reality TV star Kim Kardashian West, former U.S. President Barack Obama and billionaire Elon Musk and used them to solicit digital currency.
American Airlines AAL.O dropped 6.5% as it sent 25,000 notices of potential furloughs to frontline workers and warned that demand for air travel is slowing again.
Tesla Inc TSLA.O slipped 2.8% as its vehicle registrations nearly halved in the U.S. state of California during the second quarter, according to data from a marketing research firm.
Declining issues outnumbered advancers for a 3.09-to-1 ratio on the NYSE and for a 3.39-to-1 ratio on the Nasdaq.
The S&P index recorded 20 new 52-week highs and no new lows, while the Nasdaq recorded 51 new highs and nine new lows.
(Reporting by Medha Singh and Devik Jain in Bengaluru; Editing by Maju Samuel)
((Devik.Jain@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 6182 2062; ;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines AAL.O dropped 6.5% as it sent 25,000 notices of potential furloughs to frontline workers and warned that demand for air travel is slowing again. By Medha Singh and Devik Jain July 16 (Reuters) - U.S. stocks fell on Thursday with the S&P 500 retreating from a five-week high as concerns about the economic toll from another round of shutdowns across the United States offset data showing upbeat domestic retail sales in June. But a recent surge in domestic COVID-19 cases has forced states such as California to shut down again, sparking fears of more business damage and slowing the pace of a Wall Street rally.
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American Airlines AAL.O dropped 6.5% as it sent 25,000 notices of potential furloughs to frontline workers and warned that demand for air travel is slowing again. By Medha Singh and Devik Jain July 16 (Reuters) - U.S. stocks fell on Thursday with the S&P 500 retreating from a five-week high as concerns about the economic toll from another round of shutdowns across the United States offset data showing upbeat domestic retail sales in June. The Commerce Department's report showed retail sales jumped 7.5% last month compared with economists' forecast of 5%, signaling the economy was continuing to limp out of a coronavirus-driven slump.
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American Airlines AAL.O dropped 6.5% as it sent 25,000 notices of potential furloughs to frontline workers and warned that demand for air travel is slowing again. By Medha Singh and Devik Jain July 16 (Reuters) - U.S. stocks fell on Thursday with the S&P 500 retreating from a five-week high as concerns about the economic toll from another round of shutdowns across the United States offset data showing upbeat domestic retail sales in June. Millions are set to lose their unemployment checks on July 31 when the government stops paying an additional $600 per week to jobless self-employed people, gig workers and contractors who do not qualify for regular state unemployment benefits.
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American Airlines AAL.O dropped 6.5% as it sent 25,000 notices of potential furloughs to frontline workers and warned that demand for air travel is slowing again. Millions are set to lose their unemployment checks on July 31 when the government stops paying an additional $600 per week to jobless self-employed people, gig workers and contractors who do not qualify for regular state unemployment benefits. Technology stocks weighed the most on all the three indexes.
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5521.0
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2020-07-16 00:00:00 UTC
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UK Stocks-Factors to watch on July 16
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AAL
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https://www.nasdaq.com/articles/uk-stocks-factors-to-watch-on-july-16-2020-07-16
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July 16 (Reuters) - Britain's FTSE 100 index is seen opening 20 points lower at 6,273 on Thursday, according to financial bookmakers.
* OIL COMPANIES: A group of the world's top oil companies including Saudi Aramco, China's CNPC and Exxon Mobil have for the first time set targets to cut their combined greenhouse gas emission.
* CAR INSURANCE: The cost of a comprehensive motor insurance policy in Britain fell 5% in the second quarter.
* BREXIT TRADE: Britain publishes plans to keep trade flowing freely between its constituent nations when regulatory powers are reclaimed from the European Union.
* CARNIVAL: Carnival Corp is planning to raise about $1.26 billion in a bond offering, the beleaguered cruise operator said on Wednesday.
* FISCAL POLICY: Britain may need to run tighter fiscal policy than it has in the past during good economic times due to an apparent increase in the frequency of 'once in a generation' economic shocks, finance minister Rishi Sunak said.
* OIL: Oil prices slid after OPEC and allies such as Russia agreed to ease record supply curbs from August.
* GOLD: Gold prices held steady near a nine-year peak, as concerns over rising coronavirus cases and simmering U.S.-China tensions offset some silver linings from Chinese economic data.
* The UK blue-chip index ended up 1.8% on Wednesday, as signs of progress in developing a COVID-19 vaccine bolstered hopes of a swift post-pandemic economic rebound.
* UK CORPORATE DIARY:
Anglo American
Q2 production report Mirada PLC
FY Earnings Releases Hays PLC
Q4 Trading statement Experian
Q1 update GVC
Trading update SSE
Q1 trading statement
* For more on the factors affecting European stocks, please click on: [LIVE/]
TODAY'S UK PAPERS
> Financial Times
[PRESS/FT]
> Other business headlines
[PRESS/GB] (Reporting by Tapanjana Rudra) ((Tapanjana.Rudra@thomsonreuters.com;)) Keywords: BRITAIN STOCKS/FACTORS
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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July 16 (Reuters) - Britain's FTSE 100 index is seen opening 20 points lower at 6,273 on Thursday, according to financial bookmakers. * FISCAL POLICY: Britain may need to run tighter fiscal policy than it has in the past during good economic times due to an apparent increase in the frequency of 'once in a generation' economic shocks, finance minister Rishi Sunak said. * The UK blue-chip index ended up 1.8% on Wednesday, as signs of progress in developing a COVID-19 vaccine bolstered hopes of a swift post-pandemic economic rebound.
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* FISCAL POLICY: Britain may need to run tighter fiscal policy than it has in the past during good economic times due to an apparent increase in the frequency of 'once in a generation' economic shocks, finance minister Rishi Sunak said. * OIL: Oil prices slid after OPEC and allies such as Russia agreed to ease record supply curbs from August. Anglo American Q2 production report Mirada PLC FY Earnings Releases Hays PLC Q4 Trading statement Experian Q1 update GVC Trading update SSE Q1 trading statement * For more on the factors affecting European stocks, please click on: [LIVE/]
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* OIL COMPANIES: A group of the world's top oil companies including Saudi Aramco, China's CNPC and Exxon Mobil have for the first time set targets to cut their combined greenhouse gas emission. * FISCAL POLICY: Britain may need to run tighter fiscal policy than it has in the past during good economic times due to an apparent increase in the frequency of 'once in a generation' economic shocks, finance minister Rishi Sunak said. Anglo American Q2 production report Mirada PLC FY Earnings Releases Hays PLC Q4 Trading statement Experian Q1 update GVC Trading update SSE Q1 trading statement * For more on the factors affecting European stocks, please click on: [LIVE/]
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July 16 (Reuters) - Britain's FTSE 100 index is seen opening 20 points lower at 6,273 on Thursday, according to financial bookmakers. * OIL COMPANIES: A group of the world's top oil companies including Saudi Aramco, China's CNPC and Exxon Mobil have for the first time set targets to cut their combined greenhouse gas emission. * CAR INSURANCE: The cost of a comprehensive motor insurance policy in Britain fell 5% in the second quarter.
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5522.0
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2020-07-16 00:00:00 UTC
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Anglo sticks to most 2020 output targets despite second quarter COVID-19 hit
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AAL
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https://www.nasdaq.com/articles/anglo-sticks-to-most-2020-output-targets-despite-second-quarter-covid-19-hit-2020-07-16
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Adds detail
LONDON, July 16 (Reuters) - Global miner Anglo American AAL.L on Thursday stuck to its full-year guidance for copper, other metals and diamonds even as it posted an 18% decline in overall second quarter output due to coronavirus lockdowns.
In the three months to the end of June, production of diamonds, platinum, palladium, iron ore, coal and manganese fell, while copper and nickel rose.
Anglo said it was ramping up production and operating at about 90% total capacity by the end of June from around 60% in April.
The miner maintained its production outlook for the year for all its products but not for coal, saying further disruptions were subject to coronavirus.
Government lockdowns in Botswana, Namibia and South Africa hit the output of diamonds, platinum group metals, iron ore and thermal coal, Anglo said.
Diamond production at the De Beers unit plunged 54% in the quarter to 3.5 million carats, although the company kept annual targets unchanged.
In April, Anglo cut capital expenditure and trimmed much of its 2020 output targets.
In addition to coronavirus-related shutdowns, Anglo American Platinum AMSJ.J was hurt by repairs and ramp-up of a converter plant.
Copper output rose 5% to 167,000 tonnes compared to a year ago due to a 38% rise in output at its Collahuasi mine in Chile.
(Reporting by Zandi Shabalala; Editing by Alex Richardson and Edmund Blair)
((zandi.shabalala@tr.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Adds detail LONDON, July 16 (Reuters) - Global miner Anglo American AAL.L on Thursday stuck to its full-year guidance for copper, other metals and diamonds even as it posted an 18% decline in overall second quarter output due to coronavirus lockdowns. In the three months to the end of June, production of diamonds, platinum, palladium, iron ore, coal and manganese fell, while copper and nickel rose. Government lockdowns in Botswana, Namibia and South Africa hit the output of diamonds, platinum group metals, iron ore and thermal coal, Anglo said.
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Adds detail LONDON, July 16 (Reuters) - Global miner Anglo American AAL.L on Thursday stuck to its full-year guidance for copper, other metals and diamonds even as it posted an 18% decline in overall second quarter output due to coronavirus lockdowns. In the three months to the end of June, production of diamonds, platinum, palladium, iron ore, coal and manganese fell, while copper and nickel rose. Government lockdowns in Botswana, Namibia and South Africa hit the output of diamonds, platinum group metals, iron ore and thermal coal, Anglo said.
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Adds detail LONDON, July 16 (Reuters) - Global miner Anglo American AAL.L on Thursday stuck to its full-year guidance for copper, other metals and diamonds even as it posted an 18% decline in overall second quarter output due to coronavirus lockdowns. In the three months to the end of June, production of diamonds, platinum, palladium, iron ore, coal and manganese fell, while copper and nickel rose. Government lockdowns in Botswana, Namibia and South Africa hit the output of diamonds, platinum group metals, iron ore and thermal coal, Anglo said.
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Adds detail LONDON, July 16 (Reuters) - Global miner Anglo American AAL.L on Thursday stuck to its full-year guidance for copper, other metals and diamonds even as it posted an 18% decline in overall second quarter output due to coronavirus lockdowns. In the three months to the end of June, production of diamonds, platinum, palladium, iron ore, coal and manganese fell, while copper and nickel rose. Anglo said it was ramping up production and operating at about 90% total capacity by the end of June from around 60% in April.
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5523.0
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2020-07-16 00:00:00 UTC
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London stocks track declines in Asia; Ladbrokes owner slides
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AAL
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https://www.nasdaq.com/articles/london-stocks-track-declines-in-asia-ladbrokes-owner-slides-2020-07-16-0
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nan
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For a live blog on European stocks, type LIVE/ in an Eikon news window
Surprise drop in China's retail sales hits global stocks
GVC tumbles on saying long-time CEO to depart
Personal goods firms, homebuilders, miners among decliners
Recruiter Hays, miner Anglo American slide on downbeat results
FTSE 100 down 0.9%, FTSE 250 off 0.6%
Adds comments; updates prices
By Shashank Nayar
July 16 (Reuters) - The FTSE 100 slipped from three-week highs on Thursday on a surge in global coronavirus infections and a surprise drop in China's retail sales, while Ladbrokes owner GVC tumbled after it said its long-time chief executive officer would step down.
GVC Holdings GVC.L fell 6% to the bottom of the FTSE 100 after it said Kenny Alexander was retiring after 13 years at the helm.
The blue-chip FTSE 100 .FTSE was down 0.9% and the mid-cap FTSE 250 .FTMC was 0.6% lower, tracking declines across Europe and Asia a day after sentiment was lifted by hopes of a COVID-19 vaccine. MKTS/GLOB
Data showed China's economy returned to growth in the second quarter, but retail sales were down 1.8% last month, pointing to a bumpy outlook at home and overseas.
"Possibly the second wave of COVID-19 headline deluge from the United States is having a decidedly negative effect on Chinese consumer behaviour, which could be extrapolated globally using China as a blueprint," said Stephen Innes, markets strategist at AxiCorp.
Personal goods firms .FTNMX3760, miners .FTNMX1770 and homebuilders .FTNMX3720 were among the biggest decliners on the day.
A raft of global stimulus helped the FTSE 100 rally about 27% from its March lows, but it is still down about 17% on the year and has trailed its European and Wall Street peers as economic data points to a slower-than-expected post-pandemic rebound.
Latest data showed the slide in Britain's jobs market eased last month, although the figures did not include the most recent slew of job losses and analysts said they represented a "calm before the storm".
In earnings-related news, recruiter Hays HAYS.L slipped 4.3% to the bottom of the FTSE 250 as it warned of lower annual profits amid a slump in fee income, while miner Anglo American AAL.L shed 2.5% after posting an 18% decline in overall second-quarter output.
(Reporting by Shashank Nayar in Bengaluru; Additional reporting by Sagarika Jaisinghani; Editing by Subhranshu Sahu)
((Shashank.Nayar@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 6182 2256;))
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 earnings-related news, recruiter Hays HAYS.L slipped 4.3% to the bottom of the FTSE 250 as it warned of lower annual profits amid a slump in fee income, while miner Anglo American AAL.L shed 2.5% after posting an 18% decline in overall second-quarter output. "Possibly the second wave of COVID-19 headline deluge from the United States is having a decidedly negative effect on Chinese consumer behaviour, which could be extrapolated globally using China as a blueprint," said Stephen Innes, markets strategist at AxiCorp. A raft of global stimulus helped the FTSE 100 rally about 27% from its March lows, but it is still down about 17% on the year and has trailed its European and Wall Street peers as economic data points to a slower-than-expected post-pandemic rebound.
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In earnings-related news, recruiter Hays HAYS.L slipped 4.3% to the bottom of the FTSE 250 as it warned of lower annual profits amid a slump in fee income, while miner Anglo American AAL.L shed 2.5% after posting an 18% decline in overall second-quarter output. For a live blog on European stocks, type LIVE/ in an Eikon news window Surprise drop in China's retail sales hits global stocks GVC tumbles on saying long-time CEO to depart Personal goods firms, homebuilders, miners among decliners Recruiter Hays, miner Anglo American slide on downbeat results FTSE 100 down 0.9%, FTSE 250 off 0.6% Adds comments; updates prices By Shashank Nayar July 16 (Reuters) - The FTSE 100 slipped from three-week highs on Thursday on a surge in global coronavirus infections and a surprise drop in China's retail sales, while Ladbrokes owner GVC tumbled after it said its long-time chief executive officer would step down. Personal goods firms .FTNMX3760, miners .FTNMX1770 and homebuilders .FTNMX3720 were among the biggest decliners on the day.
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In earnings-related news, recruiter Hays HAYS.L slipped 4.3% to the bottom of the FTSE 250 as it warned of lower annual profits amid a slump in fee income, while miner Anglo American AAL.L shed 2.5% after posting an 18% decline in overall second-quarter output. For a live blog on European stocks, type LIVE/ in an Eikon news window Surprise drop in China's retail sales hits global stocks GVC tumbles on saying long-time CEO to depart Personal goods firms, homebuilders, miners among decliners Recruiter Hays, miner Anglo American slide on downbeat results FTSE 100 down 0.9%, FTSE 250 off 0.6% Adds comments; updates prices By Shashank Nayar July 16 (Reuters) - The FTSE 100 slipped from three-week highs on Thursday on a surge in global coronavirus infections and a surprise drop in China's retail sales, while Ladbrokes owner GVC tumbled after it said its long-time chief executive officer would step down. A raft of global stimulus helped the FTSE 100 rally about 27% from its March lows, but it is still down about 17% on the year and has trailed its European and Wall Street peers as economic data points to a slower-than-expected post-pandemic rebound.
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In earnings-related news, recruiter Hays HAYS.L slipped 4.3% to the bottom of the FTSE 250 as it warned of lower annual profits amid a slump in fee income, while miner Anglo American AAL.L shed 2.5% after posting an 18% decline in overall second-quarter output. For a live blog on European stocks, type LIVE/ in an Eikon news window Surprise drop in China's retail sales hits global stocks GVC tumbles on saying long-time CEO to depart Personal goods firms, homebuilders, miners among decliners Recruiter Hays, miner Anglo American slide on downbeat results FTSE 100 down 0.9%, FTSE 250 off 0.6% Adds comments; updates prices By Shashank Nayar July 16 (Reuters) - The FTSE 100 slipped from three-week highs on Thursday on a surge in global coronavirus infections and a surprise drop in China's retail sales, while Ladbrokes owner GVC tumbled after it said its long-time chief executive officer would step down. GVC Holdings GVC.L fell 6% to the bottom of the FTSE 100 after it said Kenny Alexander was retiring after 13 years at the helm.
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5524.0
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2020-07-16 00:00:00 UTC
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3 Industries I'm Avoiding Like the Plague
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AAL
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https://www.nasdaq.com/articles/3-industries-im-avoiding-like-the-plague-2020-07-16
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nan
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nan
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This has been a truly wild year to be an investor. During the first quarter of 2020, Wall Street and investors endured the swiftest bear market decline in history. But by the second quarter, they were privy to the strongest quarterly move higher since 1998. These baffling moves come courtesy of the uncertainty tied to the COVID-19 pandemic.
There's no question that there will be clear long-term winners of the pandemic, but some industries should be slapped with caution tape. Despite their popularity in recent weeks or months, I'm purposely avoiding the following three industries.
Image source: Tesla.
Electric vehicles
If you thought cloud computing, cybersecurity, and telemedicine were hot industries, feast your eyes on electric vehicle (EV) manufacturers. On a year-to-date basis (through July 14), Tesla (NASDAQ: TSLA) is up 263%, NIO (NYSE: NIO) has gained 251%, and Workhorse Group has galloped higher by 443%. Meanwhile, Nikola (NASDAQ: NKLA) and Tortoise Acquisition have more than quadrupled and doubled, respectively, in the past three months.
There's little doubt that EVs represent the future of the automotive world. But one thing is for certain -- they aren't the present. Despite the hype, EVs represent only around 2% of total U.S. sales, even though plug-in EV sales surged by at least 20% every year between 2012 and 2018, save for 2015. On a global basis, they represent about 2.2% of total auto sales.
It's going to take a long time before EVs become staples on the roads in developed countries. Similarly, ensuring that adequate infrastructure is in place to meet the needs of a growing plug-in EV fleet isn't going to happen overnight.
However, companies like Tesla, NIO, and Nikola are being priced as if everything will go off without a hitch and that the transition to EVs will be complete in five to 10 years. The adoption of every new technology over the past quarter-century suggests that this isn't going to be the case. There are always hiccups in the adoption and development process, and changing the buying habits of consumers takes a long time.
When I look at the EV industry, I see:
Tesla: A company that still hasn't produced a generally accepted accounting principles (GAAP) profit, and is producing a fraction of the vehicles Toyota cranks out on an annual basis, yet is somehow the most valued auto manufacturer in the world;
NIO: A Chinese EV producer that abandoned its opportunity to build its own vehicles in 2019 and is still trying to secure additional financing; and
Nikola: An EV truck producer that doesn't have a dime in sales to its name, yet is rivaling Ford in market cap.
If you ask me, it's all lunacy, and it's an industry I'm staying far away from.
Image source: Getty Images.
Restaurants
I'm socially distancing myself from the casual dining space. While there are clear winners that I wouldn't dare bet against, like pizza powerhouse Domino's, the industry is otherwise full of businesses with growth strategies that COVID-19 has completely undercut.
The issue for restaurants is twofold. First, the longer the pandemic continues, the more consumer behavioral habits could change. Eating at home or relying on takeout or delivery services could become the norm, potentially hurting the profitable in-store dining experience.
Second, restaurant chains often rely on debt to finance expansions. This has left some highly indebted restaurant chains, like Bloomin' Brands (NASDAQ: BLMN), the company behind Outback Steakhouse and Bonefish Grill, in potentially precarious situations. Bloomin' ended the first quarter with over $2.9 billion in total debt and had around $400 million in cash. However, the company is expected to lose a significant amount of money in 2020 and is no lock to make money in 2021.
But it isn't just dine-in chains that I worry about. Fast-casual chain Jack in the Box (NASDAQ: JACK) has a particularly strong presence in southwestern states. We've already seen California Gov. Gavin Newsom roll back indoor dining privileges to curb the spread of the novel coronavirus. Meanwhile, cases of COVID-19 are spiking in Arizona, and Nevada has the highest unemployment rate among the 50 states. Jack in the Box is not well-positioned to thrive during the pandemic, even with a model that would seem to encourage takeout and drive-thru.
I'm not even a fan of restaurant chains that are thriving. Chipotle Mexican Grill (NYSE: CMG), for example, is up 32% year to date, as its fresher foods and delivery partnerships continue to resonate with consumers. But this rise doesn't mask the fact that Wall Street's 2020 earnings-per-share estimates are down almost 25% from where they were three months ago, or the fact that the company is valued at 58 times next year's forecast earnings. This is a food company, not a tech stock. A forward valuation this aggressive makes little sense in the current environment.
Image source: Getty Images.
Airlines
I've saved the best of the worst for last: the airline industry.
There's perhaps no industry that COVID-19 has brutalized more than airlines. At the trough in early April, passenger traffic in U.S. airports had fallen 96% from the prior-year period, as measured by Transportation Security Administration screenings.
There are many reasons I want nothing to do with airline stocks now or in a post-pandemic environment.
They face the same uncertain long-term future as restaurants. The longer the pandemic persists, the more folks might choose road trips or other means of travel that don't subject them to the possibility of infection or the inconveniences associated with flying.
The airline industry is also a capital-intensive, low-margin business. Recessions and economic contractions are inevitable parts of the economic cycle, yet airlines have repeatedly shown that they're ill-equipped to survive any but the most minor of these normal contractions.
Airline stocks also tend to lean heavily on debt financing to modernize their fleets and fund expansions. American Airlines Group (NASDAQ: AAL) is the poster child for debt mismanagement. At the end of March, American Airlines had close to $3.6 billion in cash and cash equivalents and a whopping $34.1 billion in total debt. Even with lending rates at historic lows, American recently floated the idea of raising $3.5 billion at a ghastly interest rate of 12%. Time and again, debt financing gets the airline industry in trouble.
But maybe the biggest issue with the airline industry is the new lack of share repurchases and dividends. As part of accepting Coronavirus Aid, Relief, and Economic Security (CARES) Act funds for distressed industries, major airlines are now barred from buying back their stock and paying dividends. Buybacks and dividends might have been the only aspects of airline stocks that made owning them tolerable; it certainly wasn't their margins or balance sheets.
With COVID-19 clipping the wings of airline stocks, it's an industry I'm pretty convinced I'll never buy into.
10 stocks we like better than Chipotle Mexican Grill
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David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Chipotle Mexican Grill 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 June 2, 2020
Sean Williams has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Chipotle Mexican Grill and Tesla. The Motley Fool recommends Domino's Pizza. 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 the poster child for debt mismanagement. This has left some highly indebted restaurant chains, like Bloomin' Brands (NASDAQ: BLMN), the company behind Outback Steakhouse and Bonefish Grill, in potentially precarious situations. The longer the pandemic persists, the more folks might choose road trips or other means of travel that don't subject them to the possibility of infection or the inconveniences associated with flying.
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American Airlines Group (NASDAQ: AAL) is the poster child for debt mismanagement. When I look at the EV industry, I see: Tesla: A company that still hasn't produced a generally accepted accounting principles (GAAP) profit, and is producing a fraction of the vehicles Toyota cranks out on an annual basis, yet is somehow the most valued auto manufacturer in the world; NIO: A Chinese EV producer that abandoned its opportunity to build its own vehicles in 2019 and is still trying to secure additional financing; and Nikola: An EV truck producer that doesn't have a dime in sales to its name, yet is rivaling Ford in market cap. The Motley Fool owns shares of and recommends Chipotle Mexican Grill and Tesla.
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American Airlines Group (NASDAQ: AAL) is the poster child for debt mismanagement. When I look at the EV industry, I see: Tesla: A company that still hasn't produced a generally accepted accounting principles (GAAP) profit, and is producing a fraction of the vehicles Toyota cranks out on an annual basis, yet is somehow the most valued auto manufacturer in the world; NIO: A Chinese EV producer that abandoned its opportunity to build its own vehicles in 2019 and is still trying to secure additional financing; and Nikola: An EV truck producer that doesn't have a dime in sales to its name, yet is rivaling Ford in market cap. Airlines I've saved the best of the worst for last: the airline industry.
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American Airlines Group (NASDAQ: AAL) is the poster child for debt mismanagement. Despite the hype, EVs represent only around 2% of total U.S. sales, even though plug-in EV sales surged by at least 20% every year between 2012 and 2018, save for 2015. Second, restaurant chains often rely on debt to finance expansions.
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5525.0
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2020-07-16 00:00:00 UTC
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American Airlines and JetBlue Partner Up to Aid Recovery
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AAL
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https://www.nasdaq.com/articles/american-airlines-and-jetblue-partner-up-to-aid-recovery-2020-07-16
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nan
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nan
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American Airlines Group (NASDAQ: AAL) and JetBlue Airways (NASDAQ: JBLU) announced a new partnership Thursday that aims to make both airlines more competitive and offer their respective customers more choices. The airlines are targeting New York and Boston with a strategy to promote growth from trends that they believe are emerging from the COVID-19 pandemic.
The agreement aligns the loyalty programs from both airlines, seeking to provide "seamless connectivity" for current customers. JetBlue customers will get more options to connect to U.S. destinations, "while American will complement JetBlue's improved and expanded service with new international routes," the companies said.
Image source: Getty Images.
The airlines believe the alliance will provide growth opportunities for both companies. JetBlue plans to accelerate its growth into more cities, adding flights at LaGuardia and Newark. It will also increase its presence at JFK, offering its customers more connections to American's international routes. American will launch international flights from JFK to Tel Aviv and Athens and bring back a seasonal route to Rio De Janeiro. JetBlue also plans to increase service to the West Coast and Southeast.
Customers will now be able to book travel using either website, with added connection availability. A single itinerary will now be able to include flights from both airlines.
Both airlines are looking for ways to more successfully emerge from the pandemic by adding customers. "JetBlue customers will have more routes and destinations to choose from through American Airlines' extensive global network," said Scott Laurence, JetBlue's head of revenue and planning. American Airlines president Robert Isom pointed out that American already has a strong presence in the Northeast, and can now offer more flights in New York and Boston and will give American customers access to more than 130 new routes offered by JetBlue.
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 June 2, 2020
Howard Smith has no position in any of the stocks mentioned. The Motley Fool recommends JetBlue Airways. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines Group (NASDAQ: AAL) and JetBlue Airways (NASDAQ: JBLU) announced a new partnership Thursday that aims to make both airlines more competitive and offer their respective customers more choices. The airlines are targeting New York and Boston with a strategy to promote growth from trends that they believe are emerging from the COVID-19 pandemic. The agreement aligns the loyalty programs from both airlines, seeking to provide "seamless connectivity" for current customers.
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American Airlines Group (NASDAQ: AAL) and JetBlue Airways (NASDAQ: JBLU) announced a new partnership Thursday that aims to make both airlines more competitive and offer their respective customers more choices. It will also increase its presence at JFK, offering its customers more connections to American's international routes. 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) and JetBlue Airways (NASDAQ: JBLU) announced a new partnership Thursday that aims to make both airlines more competitive and offer their respective customers more choices. "JetBlue customers will have more routes and destinations to choose from through American Airlines' extensive global network," said Scott Laurence, JetBlue's head of revenue and planning. American Airlines president Robert Isom pointed out that American already has a strong presence in the Northeast, and can now offer more flights in New York and Boston and will give American customers access to more than 130 new routes offered by JetBlue.
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American Airlines Group (NASDAQ: AAL) and JetBlue Airways (NASDAQ: JBLU) announced a new partnership Thursday that aims to make both airlines more competitive and offer their respective customers more choices. The airlines believe the alliance will provide growth opportunities for both companies. It will also increase its presence at JFK, offering its customers more connections to American's international routes.
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5526.0
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2020-07-16 00:00:00 UTC
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It Was a Good Idea to Take Profits on United Airlines
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AAL
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https://www.nasdaq.com/articles/it-was-a-good-idea-to-take-profits-on-united-airlines-2020-07-16
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The last time I weighed in on United Airlines (NASDAQ:UAL), I said, “the party is over for airlines, especially with ‘second wave’ coronavirus fears making the rounds.” That was on June 11, as the UAL stock traded at a high of $36.38.
Source: NextNewMedia / Shutterstock.com
Since then, United Airlines stock sank to a recent low of $30.42. The stock has been whipsawing this week.
Its competition hasn’t fared much better. All as the novel coronavirus prevents millions from flying, as Delta Air Lines (NYSE:DAL) just warned.
American Airlines (NASDAQ:AAL) fell from a high of $22.80 to $11.69
Delta fell from a high of $37.24 to $26.50
JetBlue Airways (NASDAQ:JBLU) fell from $15.62 to $10.44
United fell from $48.95 to $32.12
Southwest Airlines (NYSE:LUV) fell from $37.24 to $26.50
Unfortunately, each could easily see further downside thanks to the coronavirus, which has now infected 13 million people around the world. In the U.S., we have 3.5 million cases. Brazil is up to 1.9 million case. India just passed 960,000. Russia is over 750,000.
That being the case, it’s still a good idea to avoid airline stocks like United Airlines this year. Should economies begin to close up shop again, the UAL stock could revisit $18.18 lows.
The Coronavirus is Going to Get Worse
Without an approved vaccine, the coronavirus could grow far worse. Listen to WHO Director General Tedros Adhanom Ghebreyesus:
“Let me be blunt, too many countries are headed in the wrong direction, the virus remains public enemy number one. If basics are not followed, the only way this pandemic is going to go – it is going to get worse and worse and worse.”
U.S. cities like Atlanta, Los Angeles, and San Diego will keep schools closed this Fall. Businesses throughout California are being locked down. Hospitals are being overwhelmed with patients. All as it appears global economies opened far too soon.
10 Work-From-Home Stocks That Are Beating the Pandemic
Even worse, Los Angeles Mayor Eric Garcetti could be on the verge of shutting down the city again.
“Let me tell you the bad news,” Garcetti said. “We’ve never had as many people [in L.A.] infected, or infectious. We’ve never had as many recorded positive cases each day, and we’ve never had as many people in the hospital as there are tonight as I speak to you.”
It’s already leading to falling demand for airline travel again, as some U.S. states mandate that some travelers quarantine themselves for 14 days if they’re from pandemic hotspots.
Airlines Are Already Warning of Industry Chaos
Airlines won’t return to normalcy any time soon.
United, for example, just warned 36,000 employees they could be furloughed later this year. All as the outlook for an airline recovery dims as infection rates rise. American warned that close to 40% of its staff could be furloughed, as the pandemic roils the industry.
In addition, Delta just cut its August 2020 flights by half, as the pandemic sours demand.
“Demand has stalled as the virus has grown, particularly down here in the south, across the Sun Belt, coupled with the quarantine measures that are going in place in many of the northern states,” Delta CEO Ed Bastian said. “Those two factors are causing consumers to pause.”
After all, there’s not much they can do.
“Airline executives are warning investors to brace for a bumpy recovery. United recently said in a filing that the company is evaluating and canceling flights on a rolling 60-day basis and expects demand to be ‘suppressed until a widely accepted treatment and/or vaccine for Covid-19 is available,’” wrote Barron’s contributor Daren Fonda. “United expects capacity to be down 75% and 65% in July and August, respectively, and doesn’t expect the recovery to “follow a linear path, as illustrated by recent booking and demand trends.”
The Bottom Line on UAL Stock
If you made money as United Airlines initially recovered, that’s great. Unfortunately, with the never-ending coronavirus story refusing to die, airline stocks like United Airlines could easily plunge lower again.
At this point, your best course of action is to avoid or sell the United Airlines stock, and wait for the madness to end. Down the line, United will present itself as another solid “blood in the streets” opportunity.
Ian Cooper, an InvestorPlace.com contributor, has been analyzing stocks and options for web-based advisories since 1999. As of this writing, he did not hold a position in any of the aforementioned securities.
The post It Was a Good Idea to Take Profits on United Airlines appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines (NASDAQ:AAL) fell from a high of $22.80 to $11.69 Delta fell from a high of $37.24 to $26.50 JetBlue Airways (NASDAQ:JBLU) fell from $15.62 to $10.44 United fell from $48.95 to $32.12 Southwest Airlines (NYSE:LUV) fell from $37.24 to $26.50 Unfortunately, each could easily see further downside thanks to the coronavirus, which has now infected 13 million people around the world. Listen to WHO Director General Tedros Adhanom Ghebreyesus: “Let me be blunt, too many countries are headed in the wrong direction, the virus remains public enemy number one. “Demand has stalled as the virus has grown, particularly down here in the south, across the Sun Belt, coupled with the quarantine measures that are going in place in many of the northern states,” Delta CEO Ed Bastian said.
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American Airlines (NASDAQ:AAL) fell from a high of $22.80 to $11.69 Delta fell from a high of $37.24 to $26.50 JetBlue Airways (NASDAQ:JBLU) fell from $15.62 to $10.44 United fell from $48.95 to $32.12 Southwest Airlines (NYSE:LUV) fell from $37.24 to $26.50 Unfortunately, each could easily see further downside thanks to the coronavirus, which has now infected 13 million people around the world. InvestorPlace - Stock Market News, Stock Advice & Trading Tips The last time I weighed in on United Airlines (NASDAQ:UAL), I said, “the party is over for airlines, especially with ‘second wave’ coronavirus fears making the rounds.” That was on June 11, as the UAL stock traded at a high of $36.38. That being the case, it’s still a good idea to avoid airline stocks like United Airlines this year.
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American Airlines (NASDAQ:AAL) fell from a high of $22.80 to $11.69 Delta fell from a high of $37.24 to $26.50 JetBlue Airways (NASDAQ:JBLU) fell from $15.62 to $10.44 United fell from $48.95 to $32.12 Southwest Airlines (NYSE:LUV) fell from $37.24 to $26.50 Unfortunately, each could easily see further downside thanks to the coronavirus, which has now infected 13 million people around the world. InvestorPlace - Stock Market News, Stock Advice & Trading Tips The last time I weighed in on United Airlines (NASDAQ:UAL), I said, “the party is over for airlines, especially with ‘second wave’ coronavirus fears making the rounds.” That was on June 11, as the UAL stock traded at a high of $36.38. “United expects capacity to be down 75% and 65% in July and August, respectively, and doesn’t expect the recovery to “follow a linear path, as illustrated by recent booking and demand trends.” The Bottom Line on UAL Stock If you made money as United Airlines initially recovered, that’s great.
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American Airlines (NASDAQ:AAL) fell from a high of $22.80 to $11.69 Delta fell from a high of $37.24 to $26.50 JetBlue Airways (NASDAQ:JBLU) fell from $15.62 to $10.44 United fell from $48.95 to $32.12 Southwest Airlines (NYSE:LUV) fell from $37.24 to $26.50 Unfortunately, each could easily see further downside thanks to the coronavirus, which has now infected 13 million people around the world. InvestorPlace - Stock Market News, Stock Advice & Trading Tips The last time I weighed in on United Airlines (NASDAQ:UAL), I said, “the party is over for airlines, especially with ‘second wave’ coronavirus fears making the rounds.” That was on June 11, as the UAL stock traded at a high of $36.38. That being the case, it’s still a good idea to avoid airline stocks like United Airlines this year.
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5527.0
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2020-07-16 00:00:00 UTC
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Should You Buy Airline Stocks Right Now?
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AAL
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https://www.nasdaq.com/articles/should-you-buy-airline-stocks-right-now-2020-07-16
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nan
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Investors have been getting conflicting signals about the airline industry in recent weeks. On the one hand, encouraging early data about vaccines under development have bolstered hopes that a vaccine to protect against COVID-19 could come to market in record time. On the other hand, the massive quarterly loss reported by Delta Air Lines (NYSE: DAL) this week highlights the depth of airlines' near-term challenges.
With this backdrop, U.S. airline stocks have settled into a trading range well above the lows plumbed in late March but below the highs briefly reached after a monster rally between mid-May and early June. Shares of Delta, American Airlines (NASDAQ: AAL), and United Airlines (NASDAQ: UAL) are all down more than 50% year to date, while low-fare giant Southwest Airlines (NYSE: LUV) has fared somewhat better, falling 34% year to date.
Airline Stock Year-to-Date Performance, data by YCharts.
Let's take a look at whether these recent developments make it a good time to buy airline stocks.
Good news on the vaccine front
Over the past week, throughput at TSA checkpoints has averaged 26% of year-ago levels. While that's a whole lot better than mid-April, when the TSA was only screening 4% as many people as it was a year earlier, the lesson is that as long as the pandemic is raging, air travel demand will remain far below pre-coronavirus levels.
This means that airlines' medium-term prospects depend heavily on the development of safe and effective vaccines and COVID-19 treatments. As a result, airline stocks soared on Wednesday, after biotech company Moderna said that its vaccine candidate generated a strong immune response in all 45 patients included in an early testing round. A phase 3 trial for that vaccine will begin later this month.
A vaccine developed by researchers at the University of Oxford has also shown promise. It began large-scale trials in the U.K. in late May, with a 30,000-person study in the U.S. set to launch next month. Moreover, these are just two frontrunners among dozens of serious vaccine candidates.
Still, it is quite common for drugs and vaccines to look promising through Phase 2 trials but run into problems during Phase 3 trials. It's also possible that -- similar to flu shots -- a vaccine could be effective at reducing the severity of the disease without completely preventing infection or transmission. The FDA's target is fairly modest, calling for vaccines to achieve at least 50% efficacy to be approved.
In practical terms, this means that COVID-19 fears could linger even after a vaccine becomes available. Until the vaccine generates a track record of success or the pandemic recedes for other reasons (e.g. better hygiene practices and improved contact tracing), many Americans may remain reluctant to travel by air.
Near-term losses remain significant
On Tuesday, Delta Air Lines reported an adjusted pre-tax loss of $3.9 billion for the second quarter, as adjusted revenue plunged 91% year over year. Moreover, like United Airlines, Delta has experienced a slowdown in booking momentum this month following rapid sequential growth from week to week during June.
Image source: Delta Air Lines.
As a result, Delta expects July daily cash burn to be similar to the $27 million per day it burned in June. United Airlines and American Airlines have been burning cash at a similar rate. American described its daily cash burn at the end of June as "less than $35 million", while United said last month that it expected daily cash burn to average $40 million in the second quarter and $30 million in the third quarter. Southwest Airlines, which is about half the size of its full-service airline rivals, has estimated June cash burn at $20 million per day.
All four top U.S. airlines are working aggressively to reduce costs by offering early retirement options and voluntary buyouts for staff, while preparing the ground for layoffs or furloughs later this year. They are also taking a hatchet to discretionary spending. Meanwhile, Delta and American have each retired several small or older aircraft subfleets to reduce complexity and unlock maintenance savings and productivity gains.
Delta has explicitly set out a goal of reaching breakeven by year-end thanks to these measures. However, management acknowledges that getting there will require a significant improvement in demand relative to recent levels. Depending on the status of the pandemic, that may prove overly ambitious.
Choose wisely
Deciding whether to invest in airline stocks today requires balancing the sharp year-to-date declines in their share prices against their increased debt loads, ongoing cash burn, and the risk that vaccines don't become widely available until 2022 or later, prolonging the current period of extremely weak demand.
American Airlines and United Airlines are particularly vulnerable. They have plenty of cash for now, but both airlines entered 2020 with a lot of debt (especially American). Furthermore, their subpar historical profitability and dependence on international travel (especially United) and business travel -- both of which are likely to recover more slowly than domestic leisure demand -- could lead to a slow earnings recovery.
Shares of Delta Air Lines and Southwest Airlines are far more attractive. While both stocks carry a lot of risk -- after all, the companies are still burning cash every day -- Southwest Airlines has a fortress balance sheet and Delta's balance sheet is quite solid, too. That should give investors some comfort that both airlines will survive the COVID-19 pandemic without taking on an unsustainable amount of debt, positioning them to profit when air traffic demand eventually rebounds.
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 June 2, 2020
Adam Levine-Weinberg owns shares of Delta Air Lines and Southwest Airlines. 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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Shares of Delta, American Airlines (NASDAQ: AAL), and United Airlines (NASDAQ: UAL) are all down more than 50% year to date, while low-fare giant Southwest Airlines (NYSE: LUV) has fared somewhat better, falling 34% year to date. With this backdrop, U.S. airline stocks have settled into a trading range well above the lows plumbed in late March but below the highs briefly reached after a monster rally between mid-May and early June. As a result, airline stocks soared on Wednesday, after biotech company Moderna said that its vaccine candidate generated a strong immune response in all 45 patients included in an early testing round.
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Shares of Delta, American Airlines (NASDAQ: AAL), and United Airlines (NASDAQ: UAL) are all down more than 50% year to date, while low-fare giant Southwest Airlines (NYSE: LUV) has fared somewhat better, falling 34% year to date. Near-term losses remain significant On Tuesday, Delta Air Lines reported an adjusted pre-tax loss of $3.9 billion for the second quarter, as adjusted revenue plunged 91% year over year. As a result, Delta expects July daily cash burn to be similar to the $27 million per day it burned in June.
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Shares of Delta, American Airlines (NASDAQ: AAL), and United Airlines (NASDAQ: UAL) are all down more than 50% year to date, while low-fare giant Southwest Airlines (NYSE: LUV) has fared somewhat better, falling 34% year to date. Choose wisely Deciding whether to invest in airline stocks today requires balancing the sharp year-to-date declines in their share prices against their increased debt loads, ongoing cash burn, and the risk that vaccines don't become widely available until 2022 or later, prolonging the current period of extremely weak demand. See the 10 stocks *Stock Advisor returns as of June 2, 2020 Adam Levine-Weinberg owns shares of Delta Air Lines and Southwest Airlines.
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Shares of Delta, American Airlines (NASDAQ: AAL), and United Airlines (NASDAQ: UAL) are all down more than 50% year to date, while low-fare giant Southwest Airlines (NYSE: LUV) has fared somewhat better, falling 34% year to date. Let's take a look at whether these recent developments make it a good time to buy airline stocks. While that's a whole lot better than mid-April, when the TSA was only screening 4% as many people as it was a year earlier, the lesson is that as long as the pandemic is raging, air travel demand will remain far below pre-coronavirus levels.
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5528.0
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2020-07-16 00:00:00 UTC
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American, JetBlue sign strategic partnership to drive pandemic recovery
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AAL
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https://www.nasdaq.com/articles/american-jetblue-sign-strategic-partnership-to-drive-pandemic-recovery-2020-07-16
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nan
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nan
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By Tracy Rucinski
CHICAGO, July 16 (Reuters) - American Airlines AAL.O and JetBlue Airways JBLU.O said on Thursday they had agreed a strategic partnership to boost flying options in New York and Boston and create what executives called a "growth engine" to recover from the coronavirus pandemic.
The deal will include reciprocal codeshare flights on more than 60 routes operated by American and 130 by JetBlue that can be booked on either website. Customers can exchange frequent-flyer benefits, meaning they can earn miles on one airline and use them on the other.
As a result of the agreement, American will launch service from New York (JFK) to Tel Aviv, Athens and Rio de Janeiro in 2021 and continue to serve London and Madrid, giving JetBlue customers access to international markets.
JetBlue will add flights at all three New York area airports including its home base, JFK.
"This allows us to recover more quickly," Scott Laurence, JetBlue's head of revenue and planning, told Reuters. "It means that airplanes that would otherwise have been in a desert, they're going to be flying and generating revenue."
Discussions began before the coronavirus pandemic nearly ground the aviation industry to a halt this year, but accelerated as a result of the crisis, he said.
The deal - subject to final documentation and governmental review - will help American, which has a significant presence across the middle of the country, gain relevance in New York and Boston, said American's chief revenue officer, Vasu Raja.
It follows American's revived partnership with Seattle-based Alaska Airlines ALKAIR.UL in February to boost expansion opportunities out of the West Coast.
Alaska is due to join the oneworld alliance by summer 2021, but JetBlue is not joining oneworld - which includes carriers like British Airways and Japan Airlines - and still plans to independently launch and operate transatlantic flights to London in 2021.
(Reporting by Tracy Rucinski. Editing by Gerry Doyle)
((tracy.rucinski@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Tracy Rucinski CHICAGO, July 16 (Reuters) - American Airlines AAL.O and JetBlue Airways JBLU.O said on Thursday they had agreed a strategic partnership to boost flying options in New York and Boston and create what executives called a "growth engine" to recover from the coronavirus pandemic. As a result of the agreement, American will launch service from New York (JFK) to Tel Aviv, Athens and Rio de Janeiro in 2021 and continue to serve London and Madrid, giving JetBlue customers access to international markets. It follows American's revived partnership with Seattle-based Alaska Airlines ALKAIR.UL in February to boost expansion opportunities out of the West Coast.
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By Tracy Rucinski CHICAGO, July 16 (Reuters) - American Airlines AAL.O and JetBlue Airways JBLU.O said on Thursday they had agreed a strategic partnership to boost flying options in New York and Boston and create what executives called a "growth engine" to recover from the coronavirus pandemic. The deal - subject to final documentation and governmental review - will help American, which has a significant presence across the middle of the country, gain relevance in New York and Boston, said American's chief revenue officer, Vasu Raja. Alaska is due to join the oneworld alliance by summer 2021, but JetBlue is not joining oneworld - which includes carriers like British Airways and Japan Airlines - and still plans to independently launch and operate transatlantic flights to London in 2021.
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By Tracy Rucinski CHICAGO, July 16 (Reuters) - American Airlines AAL.O and JetBlue Airways JBLU.O said on Thursday they had agreed a strategic partnership to boost flying options in New York and Boston and create what executives called a "growth engine" to recover from the coronavirus pandemic. As a result of the agreement, American will launch service from New York (JFK) to Tel Aviv, Athens and Rio de Janeiro in 2021 and continue to serve London and Madrid, giving JetBlue customers access to international markets. Alaska is due to join the oneworld alliance by summer 2021, but JetBlue is not joining oneworld - which includes carriers like British Airways and Japan Airlines - and still plans to independently launch and operate transatlantic flights to London in 2021.
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By Tracy Rucinski CHICAGO, July 16 (Reuters) - American Airlines AAL.O and JetBlue Airways JBLU.O said on Thursday they had agreed a strategic partnership to boost flying options in New York and Boston and create what executives called a "growth engine" to recover from the coronavirus pandemic. The deal will include reciprocal codeshare flights on more than 60 routes operated by American and 130 by JetBlue that can be booked on either website. Customers can exchange frequent-flyer benefits, meaning they can earn miles on one airline and use them on the other.
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5529.0
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2020-07-16 00:00:00 UTC
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JetBlue, American Partner To Create More Options And Choice For Customers In Northeast
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AAL
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https://www.nasdaq.com/articles/jetblue-american-partner-to-create-more-options-and-choice-for-customers-in-northeast-2020
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nan
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nan
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(RTTNews) - JetBlue Airways Corp. (JBLU) and American Airlines Group Inc. (AAL) said that they have entered into partnership to create connectivity for travelers in the Northeast and more choice for customers across their domestic and international networks.
American said it will launch international service from New York (JFK) to Tel Aviv (TLV) and to Athens (ATH), and JFK to Rio De Janeiro (GIG) will return as a daily seasonal route in winter 2021, in addition to continuing to serve popular long-haul destinations like London (LHR) and Madrid (MAD).
JetBlue will grow in greater New York City, adding flights at LaGuardia (LGA) and Newark (EWR), while also increasing its presence at JFK for seamless connections to American's expanded international network.
JetBlue plans to enhance service to strategic markets on the East Coast, West Coast, and in the Southeast, building on JetBlue's recently announced service between EWR and nine markets, including Mint service to Los Angeles (LAX) and San Francisco or SFO.
American intends to launch service between JFK and TLV and will introduce new seasonal service between JFK and ATH next summer. The new nonstop service to TLV and ATH from JFK will be the first long-haul international flights that American has launched from New York in more than four years.
American will also operate daily seasonal service to GIG beginning in winter 2021 during the peak summer travel period in Rio de Janeiro.
JetBlue and American will begin a new codeshare relationship, giving customers seamless access to more destinations, including international service. The codeshare will introduce JetBlue customers to more than 60 new routes operated by American and will introduce American's customers to more than 130 new routes operated by JetBlue.
Codesharing allows customers to book a single itinerary combining flights from both airlines, which will result in a one-stop check-in experience and seamless flight connections from origin to destination.
JetBlue and American will offer customers more options on Transcon service from New York to the West Coast.
American intends to operate more dual-class regional aircraft featuring first class beginning next year, providing the premium experience customers in the Northeast prefer.
JetBlue plans to independently launch and operate transatlantic flights to London in 2021.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - JetBlue Airways Corp. (JBLU) and American Airlines Group Inc. (AAL) said that they have entered into partnership to create connectivity for travelers in the Northeast and more choice for customers across their domestic and international networks. JetBlue will grow in greater New York City, adding flights at LaGuardia (LGA) and Newark (EWR), while also increasing its presence at JFK for seamless connections to American's expanded international network. American intends to operate more dual-class regional aircraft featuring first class beginning next year, providing the premium experience customers in the Northeast prefer.
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(RTTNews) - JetBlue Airways Corp. (JBLU) and American Airlines Group Inc. (AAL) said that they have entered into partnership to create connectivity for travelers in the Northeast and more choice for customers across their domestic and international networks. American said it will launch international service from New York (JFK) to Tel Aviv (TLV) and to Athens (ATH), and JFK to Rio De Janeiro (GIG) will return as a daily seasonal route in winter 2021, in addition to continuing to serve popular long-haul destinations like London (LHR) and Madrid (MAD). American intends to launch service between JFK and TLV and will introduce new seasonal service between JFK and ATH next summer.
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(RTTNews) - JetBlue Airways Corp. (JBLU) and American Airlines Group Inc. (AAL) said that they have entered into partnership to create connectivity for travelers in the Northeast and more choice for customers across their domestic and international networks. American said it will launch international service from New York (JFK) to Tel Aviv (TLV) and to Athens (ATH), and JFK to Rio De Janeiro (GIG) will return as a daily seasonal route in winter 2021, in addition to continuing to serve popular long-haul destinations like London (LHR) and Madrid (MAD). JetBlue plans to enhance service to strategic markets on the East Coast, West Coast, and in the Southeast, building on JetBlue's recently announced service between EWR and nine markets, including Mint service to Los Angeles (LAX) and San Francisco or SFO.
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(RTTNews) - JetBlue Airways Corp. (JBLU) and American Airlines Group Inc. (AAL) said that they have entered into partnership to create connectivity for travelers in the Northeast and more choice for customers across their domestic and international networks. JetBlue will grow in greater New York City, adding flights at LaGuardia (LGA) and Newark (EWR), while also increasing its presence at JFK for seamless connections to American's expanded international network. The new nonstop service to TLV and ATH from JFK will be the first long-haul international flights that American has launched from New York in more than four years.
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5530.0
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2020-07-16 00:00:00 UTC
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Key U.S. lawmakers back unions' call for new airline bailout
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AAL
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https://www.nasdaq.com/articles/key-u.s.-lawmakers-back-unions-call-for-new-airline-bailout-2020-07-16
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nan
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nan
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By David Shepardson and Tracy Rucinski
WASHINGTON/CHICAGO July 16 (Reuters) - Key U.S. House Democrats are backing a push by airline unions for a new round of government bailouts to keep workers employed in the face of tens of thousands of possible layoffs this fall.
Representative Peter DeFazio, who chairs the House Transportation and Infrastructure Committee, and other Democrats are circulating a letter to colleagues calling for the extension of payroll assistance. In March, Congress approved $32 billion for airlines and contractors in exchange for the companies keeping workers on the job through Sept. 30. Airline unions in June sought another $32 billion to keep workers employed through March 31.
The lawmakers' letter said "with the current resurgence of COVID-19 in several states across the country and a vaccine for the virus yet to be developed, passenger demand for air travel will not recover before" Sept. 30 and "hundreds of thousands of airline workers may be fired or furloughed starting October 1."
Airline unions on Wednesday asked lawmakers to sign on to the DeFazio letter.
On Wednesday, American Airlines AAL.O said it was sending 25,000 notices of potential furloughs to frontline workers. American had already warned that furloughs would be hard to avoid as pandemic-hit revenue remains more sluggish than the airline had hoped.
American said Wednesday it would be "supportive" of any legislation that would protect employee jobs, while an industry trade group previously said airlines were not seeking additional assistance "at this time."
United Airlines UAL.O has sent 36,000 furlough notices, representing about 45% of workers, and Southwest Airlines LUV.N has warned job losses will be hard to avoid.
Delta Air Lines Inc DAL.N said this week it believed it could avoid furloughs in the fall after about 17,000 employees signed up for early departure deals.
After boosting summer flying following some signs of pent-up leisure demand in May and June, some airlines are now scaling back their schedules due to a surge in COVID-19 cases across the country.
(Reporting by David Shepardson and Tracy Rucinski Editing by Chizu Nomiyama and 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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On Wednesday, American Airlines AAL.O said it was sending 25,000 notices of potential furloughs to frontline workers. By David Shepardson and Tracy Rucinski WASHINGTON/CHICAGO July 16 (Reuters) - Key U.S. House Democrats are backing a push by airline unions for a new round of government bailouts to keep workers employed in the face of tens of thousands of possible layoffs this fall. Representative Peter DeFazio, who chairs the House Transportation and Infrastructure Committee, and other Democrats are circulating a letter to colleagues calling for the extension of payroll assistance.
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On Wednesday, American Airlines AAL.O said it was sending 25,000 notices of potential furloughs to frontline workers. By David Shepardson and Tracy Rucinski WASHINGTON/CHICAGO July 16 (Reuters) - Key U.S. House Democrats are backing a push by airline unions for a new round of government bailouts to keep workers employed in the face of tens of thousands of possible layoffs this fall. Airline unions in June sought another $32 billion to keep workers employed through March 31.
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On Wednesday, American Airlines AAL.O said it was sending 25,000 notices of potential furloughs to frontline workers. By David Shepardson and Tracy Rucinski WASHINGTON/CHICAGO July 16 (Reuters) - Key U.S. House Democrats are backing a push by airline unions for a new round of government bailouts to keep workers employed in the face of tens of thousands of possible layoffs this fall. The lawmakers' letter said "with the current resurgence of COVID-19 in several states across the country and a vaccine for the virus yet to be developed, passenger demand for air travel will not recover before" Sept. 30 and "hundreds of thousands of airline workers may be fired or furloughed starting October 1."
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On Wednesday, American Airlines AAL.O said it was sending 25,000 notices of potential furloughs to frontline workers. Airline unions in June sought another $32 billion to keep workers employed through March 31. Airline unions on Wednesday asked lawmakers to sign on to the DeFazio letter.
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5531.0
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2020-07-15 00:00:00 UTC
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Wednesday Sector Leaders: Services, Industrial
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AAL
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https://www.nasdaq.com/articles/wednesday-sector-leaders%3A-services-industrial-2020-07-16
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nan
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nan
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In afternoon trading on Wednesday, Services stocks are the best performing sector, up 3.4%. Within the sector, Carnival Corp (Symbol: CCL) and MGM Resorts International (Symbol: MGM) are two large stocks leading the way, showing a gain of 14.3% and 11.2%, respectively. Among the largest ETFs, one ETF closely following services stocks is the iShares U.S. Consumer Services ETF (Symbol: IYC), which is up 1.9% on the day, and up 2.20% year-to-date. Carnival Corp, meanwhile, is down 65.20% year-to-date, and MGM Resorts International, is down 45.52% year-to-date. Combined, CCL and MGM make up approximately 0.5% of the underlying holdings of IYC.
The next best performing sector is the Industrial sector, up 3.2%. Among large Industrial stocks, Norwegian Cruise Line Holdings Ltd (Symbol: NCLH) and American Airlines Group Inc (Symbol: AAL) are the most notable, showing a gain of 17.6% and 13.4%, respectively. One ETF closely tracking Industrial stocks is the Industrial Select Sector SPDR ETF (XLI), which is up 2.5% in midday trading, and down 11.31% on a year-to-date basis. Norwegian Cruise Line Holdings Ltd, meanwhile, is down 69.12% year-to-date, and American Airlines Group Inc, is down 53.89% year-to-date. AAL makes up approximately 0.3% of the underlying holdings of XLI.
Comparing these stocks and ETFs on a trailing twelve month basis, below is a relative stock price performance chart, with each of the symbols shown in a different color as labeled in the legend at the bottom:
Here's a snapshot of how the S&P 500 components within the various sectors are faring in afternoon trading on Wednesday. As you can see, nine sectors are up on the day, while none of the sectors are down.
SECTOR % CHANGE
Services +3.4%
Industrial +3.2%
Consumer Products +2.9%
Healthcare +2.4%
Materials +2.4%
Energy +2.2%
Financial +1.9%
Technology & Communications +1.0%
Utilities +0.1%
10 ETFs With Stocks That Insiders Are Buying »
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 Industrial stocks, Norwegian Cruise Line Holdings Ltd (Symbol: NCLH) and American Airlines Group Inc (Symbol: AAL) are the most notable, showing a gain of 17.6% and 13.4%, respectively. AAL makes up approximately 0.3% of the underlying holdings of XLI. Combined, CCL and MGM make up approximately 0.5% of the underlying holdings of IYC.
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Among large Industrial stocks, Norwegian Cruise Line Holdings Ltd (Symbol: NCLH) and American Airlines Group Inc (Symbol: AAL) are the most notable, showing a gain of 17.6% and 13.4%, respectively. AAL makes up approximately 0.3% of the underlying holdings of XLI. Within the sector, Carnival Corp (Symbol: CCL) and MGM Resorts International (Symbol: MGM) are two large stocks leading the way, showing a gain of 14.3% and 11.2%, respectively.
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Among large Industrial stocks, Norwegian Cruise Line Holdings Ltd (Symbol: NCLH) and American Airlines Group Inc (Symbol: AAL) are the most notable, showing a gain of 17.6% and 13.4%, respectively. AAL makes up approximately 0.3% of the underlying holdings of XLI. Within the sector, Carnival Corp (Symbol: CCL) and MGM Resorts International (Symbol: MGM) are two large stocks leading the way, showing a gain of 14.3% and 11.2%, respectively.
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Among large Industrial stocks, Norwegian Cruise Line Holdings Ltd (Symbol: NCLH) and American Airlines Group Inc (Symbol: AAL) are the most notable, showing a gain of 17.6% and 13.4%, respectively. AAL makes up approximately 0.3% of the underlying holdings of XLI. In afternoon trading on Wednesday, Services stocks are the best performing sector, up 3.4%.
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5532.0
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2020-07-15 00:00:00 UTC
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American Airlines sending 25,000 furlough warnings -memo
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AAL
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https://www.nasdaq.com/articles/american-airlines-sending-25000-furlough-warnings-memo-2020-07-15
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nan
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nan
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By Tracy Rucinski
CHICAGO, July 15 (Reuters) - American Airlines AAL.O is sending 25,000 notices of potential furloughs to frontline workers, according to a memo released on Wednesday, preparing employees for job cuts in the fall as the coronavirus pandemic forces airlines globally to shrink.
American, with more than 130,000 employees in 2019, had already warned that furloughs would be hard to avoid as pandemic-hit revenue remains more sluggish than the airline had hoped.
The terms of a $25 billion payroll stimulus package awarded by U.S. Congress in March ban airlines from forced job cuts before October, and under the Worker Adjustment and Retraining Notification Act they are required to provide 60 days' notice of mass layoffs.
To cut costs before October and avoid layoffs, U.S. airlines have rolled out buyouts to encourage employees to leave voluntarily.
American's memo, reviewed by Reuters, offers extended leave and early out packages for frontline workers.
Delta Air Lines Inc DAL.N said this week it believed it could avoid furloughs in the fall after about 17,000 employees signed up for early departure deals.
By encouraging more senior workers to depart, U.S. airlines could trim their labor costs - their main expense - during the recovery, giving them more pricing power. Airline union contracts require airlines to furlough junior workers first.
United Airlines UAL.O has sent 36,000 furlough notices, representing about 45% of workers, and Southwest Airlines LUV.N has also warned that job losses will be hard to avoid.
After boosting summer flying following some signs of pent-up leisure demand in May and June, some airlines are now scaling back their schedules due to a surge in COVID-19 cases across the country.
The U.S. outbreak has prompted several countries to impose travel restrictions on Americans. The European Union excluded the United States from its "safe" travel list.
Both Canada and Mexico want to extend the ban on non-essential travel at U.S. borders.
Even within the United States, Americans from 22 states are required to self-quarantine for 14 days if they enter New York or New Jersey, two states that have managed to curb infections.
Delta takes $3 bln charge on buyouts, American Airlines workers brace for furlough warnings
GRAPHIC-Where COVID-19 is spreading fastest in the United States
(Reporting by Tracy Rucinski in Chicago Editing by Lisa Shumaker and 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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By Tracy Rucinski CHICAGO, July 15 (Reuters) - American Airlines AAL.O is sending 25,000 notices of potential furloughs to frontline workers, according to a memo released on Wednesday, preparing employees for job cuts in the fall as the coronavirus pandemic forces airlines globally to shrink. The terms of a $25 billion payroll stimulus package awarded by U.S. Congress in March ban airlines from forced job cuts before October, and under the Worker Adjustment and Retraining Notification Act they are required to provide 60 days' notice of mass layoffs. By encouraging more senior workers to depart, U.S. airlines could trim their labor costs - their main expense - during the recovery, giving them more pricing power.
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By Tracy Rucinski CHICAGO, July 15 (Reuters) - American Airlines AAL.O is sending 25,000 notices of potential furloughs to frontline workers, according to a memo released on Wednesday, preparing employees for job cuts in the fall as the coronavirus pandemic forces airlines globally to shrink. To cut costs before October and avoid layoffs, U.S. airlines have rolled out buyouts to encourage employees to leave voluntarily. American's memo, reviewed by Reuters, offers extended leave and early out packages for frontline workers.
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By Tracy Rucinski CHICAGO, July 15 (Reuters) - American Airlines AAL.O is sending 25,000 notices of potential furloughs to frontline workers, according to a memo released on Wednesday, preparing employees for job cuts in the fall as the coronavirus pandemic forces airlines globally to shrink. United Airlines UAL.O has sent 36,000 furlough notices, representing about 45% of workers, and Southwest Airlines LUV.N has also warned that job losses will be hard to avoid. Delta takes $3 bln charge on buyouts, American Airlines workers brace for furlough warnings GRAPHIC-Where COVID-19 is spreading fastest in the United States (Reporting by Tracy Rucinski in Chicago Editing by Lisa Shumaker and 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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By Tracy Rucinski CHICAGO, July 15 (Reuters) - American Airlines AAL.O is sending 25,000 notices of potential furloughs to frontline workers, according to a memo released on Wednesday, preparing employees for job cuts in the fall as the coronavirus pandemic forces airlines globally to shrink. To cut costs before October and avoid layoffs, U.S. airlines have rolled out buyouts to encourage employees to leave voluntarily. The European Union excluded the United States from its "safe" travel list.
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5533.0
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2020-07-15 00:00:00 UTC
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American Airlines Issues Warning To 25,000 Employees About Possible Job Cuts
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AAL
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https://www.nasdaq.com/articles/american-airlines-issues-warning-to-25000-employees-about-possible-job-cuts-2020-07-15
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nan
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nan
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(RTTNews) - American Airlines (AAL) on Wednesday said it informed about 25,000 employees, which is about 20% of its total workforce, about possibility of furloughs, as airline operators around the globe continue to struggle due to the coronavirus pandemic.
The airline has issued WARN notices to 37% or 9,950 of American Airlines' flight attendants, 18% or 2,500 of its pilots, and 22% or 3,200 maintenance workers and 26% or 4,500 fleet service employees.
American Airlines has also asked employees to take new extended leaves program that can last up to two years or early retirement packages before having to involuntarily cut their jobs.
"Our passenger revenues in June, while we believe are better than others in the industry, were more than 80% lower than June 2019. And with infection rates increasing and several states reestablishing quarantine restrictions, demand for air travel is slowing again," CEO Doug Parker and President Robert Isom said in a letter issued to staff.
Meanwhile, airlines are prohibited from cutting jobs or pay rates of workers through September 30 under the terms of $25 billion in federal payroll support.
The Worker Adjustment and Retraining Notification Act requires employers to notify staff about possible layoffs or temporary furloughs generally 60 days in advance.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - American Airlines (AAL) on Wednesday said it informed about 25,000 employees, which is about 20% of its total workforce, about possibility of furloughs, as airline operators around the globe continue to struggle due to the coronavirus pandemic. American Airlines has also asked employees to take new extended leaves program that can last up to two years or early retirement packages before having to involuntarily cut their jobs. And with infection rates increasing and several states reestablishing quarantine restrictions, demand for air travel is slowing again," CEO Doug Parker and President Robert Isom said in a letter issued to staff.
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(RTTNews) - American Airlines (AAL) on Wednesday said it informed about 25,000 employees, which is about 20% of its total workforce, about possibility of furloughs, as airline operators around the globe continue to struggle due to the coronavirus pandemic. The airline has issued WARN notices to 37% or 9,950 of American Airlines' flight attendants, 18% or 2,500 of its pilots, and 22% or 3,200 maintenance workers and 26% or 4,500 fleet service employees. Meanwhile, airlines are prohibited from cutting jobs or pay rates of workers through September 30 under the terms of $25 billion in federal payroll support.
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(RTTNews) - American Airlines (AAL) on Wednesday said it informed about 25,000 employees, which is about 20% of its total workforce, about possibility of furloughs, as airline operators around the globe continue to struggle due to the coronavirus pandemic. The airline has issued WARN notices to 37% or 9,950 of American Airlines' flight attendants, 18% or 2,500 of its pilots, and 22% or 3,200 maintenance workers and 26% or 4,500 fleet service employees. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - American Airlines (AAL) on Wednesday said it informed about 25,000 employees, which is about 20% of its total workforce, about possibility of furloughs, as airline operators around the globe continue to struggle due to the coronavirus pandemic. The airline has issued WARN notices to 37% or 9,950 of American Airlines' flight attendants, 18% or 2,500 of its pilots, and 22% or 3,200 maintenance workers and 26% or 4,500 fleet service employees. American Airlines has also asked employees to take new extended leaves program that can last up to two years or early retirement packages before having to involuntarily cut their jobs.
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5534.0
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2020-07-15 00:00:00 UTC
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Noteworthy Wednesday Option Activity: SEAS, DAL, AAL
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AAL
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https://www.nasdaq.com/articles/noteworthy-wednesday-option-activity%3A-seas-dal-aal-2020-07-16
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nan
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nan
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Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in SeaWorld Entertainment Inc. (Symbol: SEAS), where a total volume of 13,249 contracts has been traded thus far today, a contract volume which is representative of approximately 1.3 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 56.5% of SEAS's average daily trading volume over the past month, of 2.3 million shares. Especially high volume was seen for the $24 strike call option expiring September 18, 2020, with 4,399 contracts trading so far today, representing approximately 439,900 underlying shares of SEAS. Below is a chart showing SEAS's trailing twelve month trading history, with the $24 strike highlighted in orange:
Delta Air Lines Inc (Symbol: DAL) saw options trading volume of 206,632 contracts, representing approximately 20.7 million underlying shares or approximately 55.4% of DAL's average daily trading volume over the past month, of 37.3 million shares. Particularly high volume was seen for the $29 strike call option expiring July 17, 2020, with 23,199 contracts trading so far today, representing approximately 2.3 million underlying shares of DAL. Below is a chart showing DAL's trailing twelve month trading history, with the $29 strike highlighted in orange:
And American Airlines Group Inc (Symbol: AAL) options are showing a volume of 529,051 contracts thus far today. That number of contracts represents approximately 52.9 million underlying shares, working out to a sizeable 54% of AAL's average daily trading volume over the past month, of 97.9 million shares. Particularly high volume was seen for the $13 strike call option expiring July 17, 2020, with 47,610 contracts trading so far today, representing approximately 4.8 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 SEAS 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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Particularly high volume was seen for the $13 strike call option expiring July 17, 2020, with 47,610 contracts trading so far today, representing approximately 4.8 million underlying shares of AAL. Below is a chart showing DAL's trailing twelve month trading history, with the $29 strike highlighted in orange: And American Airlines Group Inc (Symbol: AAL) options are showing a volume of 529,051 contracts thus far today. That number of contracts represents approximately 52.9 million underlying shares, working out to a sizeable 54% of AAL's average daily trading volume over the past month, of 97.9 million shares.
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Particularly high volume was seen for the $13 strike call option expiring July 17, 2020, with 47,610 contracts trading so far today, representing approximately 4.8 million underlying shares of AAL. Below is a chart showing DAL's trailing twelve month trading history, with the $29 strike highlighted in orange: And American Airlines Group Inc (Symbol: AAL) options are showing a volume of 529,051 contracts thus far today. That number of contracts represents approximately 52.9 million underlying shares, working out to a sizeable 54% of AAL's average daily trading volume over the past month, of 97.9 million shares.
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Particularly high volume was seen for the $13 strike call option expiring July 17, 2020, with 47,610 contracts trading so far today, representing approximately 4.8 million underlying shares of AAL. Below is a chart showing DAL's trailing twelve month trading history, with the $29 strike highlighted in orange: And American Airlines Group Inc (Symbol: AAL) options are showing a volume of 529,051 contracts thus far today. That number of contracts represents approximately 52.9 million underlying shares, working out to a sizeable 54% of AAL's average daily trading volume over the past month, of 97.9 million shares.
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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 SEAS options, DAL options, or AAL options, visit StockOptionsChannel.com. Below is a chart showing DAL's trailing twelve month trading history, with the $29 strike highlighted in orange: And American Airlines Group Inc (Symbol: AAL) options are showing a volume of 529,051 contracts thus far today. That number of contracts represents approximately 52.9 million underlying shares, working out to a sizeable 54% of AAL's average daily trading volume over the past month, of 97.9 million shares.
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5535.0
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2020-07-15 00:00:00 UTC
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American Airlines sending 25,000 furlough notices, says demand slowing again
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AAL
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https://www.nasdaq.com/articles/american-airlines-sending-25000-furlough-notices-says-demand-slowing-again-2020-07-15
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nan
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nan
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By Tracy Rucinski
CHICAGO, July 15 (Reuters) - American Airlines AAL.O said on Wednesday it is sending 25,000 notices of potential furloughs to frontline workers and warned that demand for air travel is slowing again as COVID-19 cases increase and states re-establish quarantine restrictions.
The Worker Adjustment and Retraining Notification Act requires companies to provide 60 days' notice of potential layoffs or furloughs.
In a memo to employees released on Wednesday, American said the notices are tied to the overstaffing it expects in October when U.S. government payroll assistance expires.
American, with more than 130,000 employees in 2019, had already warned that furloughs would be hard to avoid as pandemic-hit revenue remains more sluggish than the airline had hoped.
Among different work groups, warnings are being sent to 2,500 pilots or about 18% of the total, nearly 10,000 flight attendants or 37% of the total, and 3,200 mechanics or 22% of the total.
Overall, American expects to be overstaffed by about 20,000 in the fall, but hopes to reduce the actual number of furloughs through enhanced leave and early-departure programs it has rolled out alongside unions, Chief Executive Doug Parker and President Robert Isom said in the memo.
Delta Air Lines Inc DAL.N said this week it believed it could avoid furloughs in the fall after about 17,000 employees signed up for early-departure deals.
By encouraging more senior workers to leave, U.S. airlines could trim their labor costs - their main expense - during the recovery, giving them more pricing power. Airline union contracts require airlines to furlough junior workers first.
United Airlines UAL.O has sent 36,000 furlough notices, representing about 45% of workers, and Southwest Airlines LUV.N has also warned that job losses will be hard to avoid.
After boosting summer flying following some signs of pent-up leisure demand in May and June, some airlines are now scaling back their schedules due to a surge in COVID-19 cases across the country.
The U.S. outbreak has prompted several countries to impose travel restrictions on Americans. The European Union excluded the United States from its "safe" travel list.
Both Canada and Mexico want to extend the ban on non-essential travel at U.S. borders.
Even within the United States, Americans from 22 states are required to self-quarantine for 14 days if they enter New York or New Jersey, two states that have managed to curb infections.
Delta takes $3 bln charge on buyouts, American Airlines workers brace for furlough warnings
GRAPHIC-Where COVID-19 is spreading fastest in the United States
(Reporting by Tracy Rucinski in Chicago Editing by Lisa Shumaker and 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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By Tracy Rucinski CHICAGO, July 15 (Reuters) - American Airlines AAL.O said on Wednesday it is sending 25,000 notices of potential furloughs to frontline workers and warned that demand for air travel is slowing again as COVID-19 cases increase and states re-establish quarantine restrictions. Overall, American expects to be overstaffed by about 20,000 in the fall, but hopes to reduce the actual number of furloughs through enhanced leave and early-departure programs it has rolled out alongside unions, Chief Executive Doug Parker and President Robert Isom said in the memo. After boosting summer flying following some signs of pent-up leisure demand in May and June, some airlines are now scaling back their schedules due to a surge in COVID-19 cases across the country.
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By Tracy Rucinski CHICAGO, July 15 (Reuters) - American Airlines AAL.O said on Wednesday it is sending 25,000 notices of potential furloughs to frontline workers and warned that demand for air travel is slowing again as COVID-19 cases increase and states re-establish quarantine restrictions. Airline union contracts require airlines to furlough junior workers first. Delta takes $3 bln charge on buyouts, American Airlines workers brace for furlough warnings GRAPHIC-Where COVID-19 is spreading fastest in the United States (Reporting by Tracy Rucinski in Chicago Editing by Lisa Shumaker and 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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By Tracy Rucinski CHICAGO, July 15 (Reuters) - American Airlines AAL.O said on Wednesday it is sending 25,000 notices of potential furloughs to frontline workers and warned that demand for air travel is slowing again as COVID-19 cases increase and states re-establish quarantine restrictions. United Airlines UAL.O has sent 36,000 furlough notices, representing about 45% of workers, and Southwest Airlines LUV.N has also warned that job losses will be hard to avoid. Delta takes $3 bln charge on buyouts, American Airlines workers brace for furlough warnings GRAPHIC-Where COVID-19 is spreading fastest in the United States (Reporting by Tracy Rucinski in Chicago Editing by Lisa Shumaker and 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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By Tracy Rucinski CHICAGO, July 15 (Reuters) - American Airlines AAL.O said on Wednesday it is sending 25,000 notices of potential furloughs to frontline workers and warned that demand for air travel is slowing again as COVID-19 cases increase and states re-establish quarantine restrictions. Overall, American expects to be overstaffed by about 20,000 in the fall, but hopes to reduce the actual number of furloughs through enhanced leave and early-departure programs it has rolled out alongside unions, Chief Executive Doug Parker and President Robert Isom said in the memo. Airline union contracts require airlines to furlough junior workers first.
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5536.0
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2020-07-15 00:00:00 UTC
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BUZZ-U.S. STOCKS ON THE MOVE-Airlines, Goldman, Moderna, Gap
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AAL
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https://www.nasdaq.com/articles/buzz-u.s.-stocks-on-the-move-airlines-goldman-moderna-gap-2020-07-15
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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
Futures linked to the S&P 500 and the Dow indexes hit near five-month highs on Wednesday as signs of progress in developing a COVID-19 vaccine and a much better-than-expected quarterly profit for Goldman Sachs brightened the mood. .N
At 8:47 ET, Dow e-minis 1YMc1 were up 2.09% at 27,044. S&P 500 e-minis ESc1 were up 1.41% at 3,228.5, while Nasdaq 100 e-minis NQc1 were up 0.64% at 10,714. The top three NYSE percentage gainers premarket .PRPG.N: ** Fortress Value Acquisition Corp , up 17.7% ** Sequans Communications S.A. SQNS.N, up 14.8% ** Chaparral Energy Inc , up 14.3% The top three NYSE percentage losers premarket .PRPL.N: ** Hermitage Offshore Services Ltd , down 6% ** The Bank of New York Mellon Corp , down 6% ** AptarGroup Inc , down 5.7% The top three Nasdaq percentage gainers premarket .PRPG.O: ** China Finance Online Co , up 177.0% ** Immutep Ltd , up 58.2% ** Capitala Finance Corp , up 42.0% The top two Nasdaq percentage losers premarket .PRPL.O: ** Perceptron Inc , down 16.2% ** Zynex Inc , down 15.4% ** Apple Inc AAPL.O: up 1.6% premarket BUZZ-Apple: Rises as co wins tax dispute against European Commission ** Zynex ZYXI.O: down 15.4% premarket BUZZ-Zynex drops after medical device firm prices stock offering ** American Airlines AAL.O: up 8.0% premarket ** United Airlines UAL.O: up 8.5% premarket ** Delta Air Lines DAL.N: up 6.1% premarket ** Southwest Airlines LUV.N: up 6.3% premarket BUZZ-U.S. airlines: Gain on hopes of a COVID-19 vaccine ** China Finance Online Co JRJC.O: up 177.0% premarket BUZZ-More than doubles on partnership with Dow Jones ** Gap GPS.N: up 6.1% premarket BUZZ-Gap rises on RBC upgrade ** Moderna MRNA.O: up 15.8% premarket BUZZ-Street View: Moderna vaccine has potential for blockbuster sales ** Lemonade Inc LMND.N: up 5.1% premarket BUZZ-Lemonade adds pet insurance to the mix, shares rise ** Immutep Ltd IMMP.O: up 58.2% premarket BUZZ-Jumps on U.S. patent for cancer treatment ** Goldman Sachs GS.N: up 4.2% premarket BUZZ-Rises as trading, underwriting gains boost Q2 profit ** Can-Fite Biopharma CPTA.O: up 42.0% premarket BUZZ-Can-Fite Biopharma gains as potential COVID-19 drug nears clinical trial ** Capitala Finance CPTA.O: up 42.0% premarket BUZZ-Surges on receiving repayments from portfolio companies
(Compiled by Bharath Manjesh in Bengaluru)
((Bharath.ManjeshR@thomsonreuters.com; outside U.S. +91 80 6749 2703;))
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 NYSE percentage gainers premarket .PRPG.N: ** Fortress Value Acquisition Corp , up 17.7% ** Sequans Communications S.A. SQNS.N, up 14.8% ** Chaparral Energy Inc , up 14.3% The top three NYSE percentage losers premarket .PRPL.N: ** Hermitage Offshore Services Ltd , down 6% ** The Bank of New York Mellon Corp , down 6% ** AptarGroup Inc , down 5.7% The top three Nasdaq percentage gainers premarket .PRPG.O: ** China Finance Online Co , up 177.0% ** Immutep Ltd , up 58.2% ** Capitala Finance Corp , up 42.0% The top two Nasdaq percentage losers premarket .PRPL.O: ** Perceptron Inc , down 16.2% ** Zynex Inc , down 15.4% ** Apple Inc AAPL.O: up 1.6% premarket BUZZ-Apple: Rises as co wins tax dispute against European Commission ** Zynex ZYXI.O: down 15.4% premarket BUZZ-Zynex drops after medical device firm prices stock offering ** American Airlines AAL.O: up 8.0% premarket ** United Airlines UAL.O: up 8.5% premarket ** Delta Air Lines DAL.N: up 6.1% premarket ** Southwest Airlines LUV.N: up 6.3% premarket BUZZ-U.S. airlines: Gain on hopes of a COVID-19 vaccine ** China Finance Online Co JRJC.O: up 177.0% premarket BUZZ-More than doubles on partnership with Dow Jones ** Gap GPS.N: up 6.1% premarket BUZZ-Gap rises on RBC upgrade ** Moderna MRNA.O: up 15.8% premarket BUZZ-Street View: Moderna vaccine has potential for blockbuster sales ** Lemonade Inc LMND.N: up 5.1% premarket BUZZ-Lemonade adds pet insurance to the mix, shares rise ** Immutep Ltd IMMP.O: up 58.2% premarket BUZZ-Jumps on U.S. patent for cancer treatment ** Goldman Sachs GS.N: up 4.2% premarket BUZZ-Rises as trading, underwriting gains boost Q2 profit ** Can-Fite Biopharma CPTA.O: up 42.0% premarket BUZZ-Can-Fite Biopharma gains as potential COVID-19 drug nears clinical trial ** Capitala Finance CPTA.O: up 42.0% premarket BUZZ-Surges on receiving repayments from portfolio companies (Compiled by Bharath Manjesh in Bengaluru) ((Bharath.ManjeshR@thomsonreuters.com; outside U.S. +91 80 6749 2703;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. 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 Futures linked to the S&P 500 and the Dow indexes hit near five-month highs on Wednesday as signs of progress in developing a COVID-19 vaccine and a much better-than-expected quarterly profit for Goldman Sachs brightened the mood. .N At 8:47 ET, Dow e-minis 1YMc1 were up 2.09% at 27,044.
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The top three NYSE percentage gainers premarket .PRPG.N: ** Fortress Value Acquisition Corp , up 17.7% ** Sequans Communications S.A. SQNS.N, up 14.8% ** Chaparral Energy Inc , up 14.3% The top three NYSE percentage losers premarket .PRPL.N: ** Hermitage Offshore Services Ltd , down 6% ** The Bank of New York Mellon Corp , down 6% ** AptarGroup Inc , down 5.7% The top three Nasdaq percentage gainers premarket .PRPG.O: ** China Finance Online Co , up 177.0% ** Immutep Ltd , up 58.2% ** Capitala Finance Corp , up 42.0% The top two Nasdaq percentage losers premarket .PRPL.O: ** Perceptron Inc , down 16.2% ** Zynex Inc , down 15.4% ** Apple Inc AAPL.O: up 1.6% premarket BUZZ-Apple: Rises as co wins tax dispute against European Commission ** Zynex ZYXI.O: down 15.4% premarket BUZZ-Zynex drops after medical device firm prices stock offering ** American Airlines AAL.O: up 8.0% premarket ** United Airlines UAL.O: up 8.5% premarket ** Delta Air Lines DAL.N: up 6.1% premarket ** Southwest Airlines LUV.N: up 6.3% premarket BUZZ-U.S. airlines: Gain on hopes of a COVID-19 vaccine ** China Finance Online Co JRJC.O: up 177.0% premarket BUZZ-More than doubles on partnership with Dow Jones ** Gap GPS.N: up 6.1% premarket BUZZ-Gap rises on RBC upgrade ** Moderna MRNA.O: up 15.8% premarket BUZZ-Street View: Moderna vaccine has potential for blockbuster sales ** Lemonade Inc LMND.N: up 5.1% premarket BUZZ-Lemonade adds pet insurance to the mix, shares rise ** Immutep Ltd IMMP.O: up 58.2% premarket BUZZ-Jumps on U.S. patent for cancer treatment ** Goldman Sachs GS.N: up 4.2% premarket BUZZ-Rises as trading, underwriting gains boost Q2 profit ** Can-Fite Biopharma CPTA.O: up 42.0% premarket BUZZ-Can-Fite Biopharma gains as potential COVID-19 drug nears clinical trial ** Capitala Finance CPTA.O: up 42.0% premarket BUZZ-Surges on receiving repayments from portfolio companies (Compiled by Bharath Manjesh in Bengaluru) ((Bharath.ManjeshR@thomsonreuters.com; outside U.S. +91 80 6749 2703;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. 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 Futures linked to the S&P 500 and the Dow indexes hit near five-month highs on Wednesday as signs of progress in developing a COVID-19 vaccine and a much better-than-expected quarterly profit for Goldman Sachs brightened the mood. .N At 8:47 ET, Dow e-minis 1YMc1 were up 2.09% at 27,044.
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The top three NYSE percentage gainers premarket .PRPG.N: ** Fortress Value Acquisition Corp , up 17.7% ** Sequans Communications S.A. SQNS.N, up 14.8% ** Chaparral Energy Inc , up 14.3% The top three NYSE percentage losers premarket .PRPL.N: ** Hermitage Offshore Services Ltd , down 6% ** The Bank of New York Mellon Corp , down 6% ** AptarGroup Inc , down 5.7% The top three Nasdaq percentage gainers premarket .PRPG.O: ** China Finance Online Co , up 177.0% ** Immutep Ltd , up 58.2% ** Capitala Finance Corp , up 42.0% The top two Nasdaq percentage losers premarket .PRPL.O: ** Perceptron Inc , down 16.2% ** Zynex Inc , down 15.4% ** Apple Inc AAPL.O: up 1.6% premarket BUZZ-Apple: Rises as co wins tax dispute against European Commission ** Zynex ZYXI.O: down 15.4% premarket BUZZ-Zynex drops after medical device firm prices stock offering ** American Airlines AAL.O: up 8.0% premarket ** United Airlines UAL.O: up 8.5% premarket ** Delta Air Lines DAL.N: up 6.1% premarket ** Southwest Airlines LUV.N: up 6.3% premarket BUZZ-U.S. airlines: Gain on hopes of a COVID-19 vaccine ** China Finance Online Co JRJC.O: up 177.0% premarket BUZZ-More than doubles on partnership with Dow Jones ** Gap GPS.N: up 6.1% premarket BUZZ-Gap rises on RBC upgrade ** Moderna MRNA.O: up 15.8% premarket BUZZ-Street View: Moderna vaccine has potential for blockbuster sales ** Lemonade Inc LMND.N: up 5.1% premarket BUZZ-Lemonade adds pet insurance to the mix, shares rise ** Immutep Ltd IMMP.O: up 58.2% premarket BUZZ-Jumps on U.S. patent for cancer treatment ** Goldman Sachs GS.N: up 4.2% premarket BUZZ-Rises as trading, underwriting gains boost Q2 profit ** Can-Fite Biopharma CPTA.O: up 42.0% premarket BUZZ-Can-Fite Biopharma gains as potential COVID-19 drug nears clinical trial ** Capitala Finance CPTA.O: up 42.0% premarket BUZZ-Surges on receiving repayments from portfolio companies (Compiled by Bharath Manjesh in Bengaluru) ((Bharath.ManjeshR@thomsonreuters.com; outside U.S. +91 80 6749 2703;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. 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 Futures linked to the S&P 500 and the Dow indexes hit near five-month highs on Wednesday as signs of progress in developing a COVID-19 vaccine and a much better-than-expected quarterly profit for Goldman Sachs brightened the mood. S&P 500 e-minis ESc1 were up 1.41% at 3,228.5, while Nasdaq 100 e-minis NQc1 were up 0.64% at 10,714.
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The top three NYSE percentage gainers premarket .PRPG.N: ** Fortress Value Acquisition Corp , up 17.7% ** Sequans Communications S.A. SQNS.N, up 14.8% ** Chaparral Energy Inc , up 14.3% The top three NYSE percentage losers premarket .PRPL.N: ** Hermitage Offshore Services Ltd , down 6% ** The Bank of New York Mellon Corp , down 6% ** AptarGroup Inc , down 5.7% The top three Nasdaq percentage gainers premarket .PRPG.O: ** China Finance Online Co , up 177.0% ** Immutep Ltd , up 58.2% ** Capitala Finance Corp , up 42.0% The top two Nasdaq percentage losers premarket .PRPL.O: ** Perceptron Inc , down 16.2% ** Zynex Inc , down 15.4% ** Apple Inc AAPL.O: up 1.6% premarket BUZZ-Apple: Rises as co wins tax dispute against European Commission ** Zynex ZYXI.O: down 15.4% premarket BUZZ-Zynex drops after medical device firm prices stock offering ** American Airlines AAL.O: up 8.0% premarket ** United Airlines UAL.O: up 8.5% premarket ** Delta Air Lines DAL.N: up 6.1% premarket ** Southwest Airlines LUV.N: up 6.3% premarket BUZZ-U.S. airlines: Gain on hopes of a COVID-19 vaccine ** China Finance Online Co JRJC.O: up 177.0% premarket BUZZ-More than doubles on partnership with Dow Jones ** Gap GPS.N: up 6.1% premarket BUZZ-Gap rises on RBC upgrade ** Moderna MRNA.O: up 15.8% premarket BUZZ-Street View: Moderna vaccine has potential for blockbuster sales ** Lemonade Inc LMND.N: up 5.1% premarket BUZZ-Lemonade adds pet insurance to the mix, shares rise ** Immutep Ltd IMMP.O: up 58.2% premarket BUZZ-Jumps on U.S. patent for cancer treatment ** Goldman Sachs GS.N: up 4.2% premarket BUZZ-Rises as trading, underwriting gains boost Q2 profit ** Can-Fite Biopharma CPTA.O: up 42.0% premarket BUZZ-Can-Fite Biopharma gains as potential COVID-19 drug nears clinical trial ** Capitala Finance CPTA.O: up 42.0% premarket BUZZ-Surges on receiving repayments from portfolio companies (Compiled by Bharath Manjesh in Bengaluru) ((Bharath.ManjeshR@thomsonreuters.com; outside U.S. +91 80 6749 2703;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. 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 Futures linked to the S&P 500 and the Dow indexes hit near five-month highs on Wednesday as signs of progress in developing a COVID-19 vaccine and a much better-than-expected quarterly profit for Goldman Sachs brightened the mood. .N At 8:47 ET, Dow e-minis 1YMc1 were up 2.09% at 27,044.
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5537.0
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2020-07-15 00:00:00 UTC
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5 Top Stock Trades for Thursday: MRNA, AZN, AAL, BYND, UNH
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AAL
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https://www.nasdaq.com/articles/5-top-stock-trades-for-thursday%3A-mrna-azn-aal-bynd-unh-2020-07-15
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
It was a bumpy morning on Wednesday, with equities gapping up, moving lower and then rebounding back on the day. With that in mind, let’s look at a few top stock trades leading the way.
Top Stock Trades for Tomorrow No. 1: Moderna (MRNA)
Click to Enlarge
Source: Chart courtesy of StockCharts.com
Moderna (NASDAQ:MRNA) surged higher on the day, but was not able to hold onto all of it gains. Shares were up as much as 16% on Wednesday, but failed to close over the May high.
Earlier this week, shares burst over the $68 to $70 area, but Wednesday’s gap-up vaulted MRNA to new highs. At least, temporarily.
Now let’s see if we can get a close over $87, the May high, and take out the July high at $88.37. Above puts the 123.6% extension in play at $91.62.
8 Presidential Election Stocks to Buy in Case Trump Wins Again
If shares fill the gap down toward $75, though, it technically puts $68 to $70 in play. Below that puts the 50-day moving average and uptrend support (blue line) on the table.
Top Stock Trades for Tomorrow No. 2: AstraZeneca (AZN)
Click to Enlarge
Source: Chart courtesy of StockCharts.com
AstraZeneca (NYSE:AZN) also caught a pop on the day, ending the day up 7.5%.
Shares were wedging into a tighter and tighter range, which is now resolving to the upside. Unlike Moderna, AZN stock is clearing the May high at $57.44 and holding this mark.
If AstraZeneca closes over the May high and takes out Wednesday’s high currently at $58.84, it puts the 123.6% extension in play at $62.46.
Should AZN stock dip, however, I don’t want to see it lose this session’s low. Otherwise, it could fill the gap and retest its 20-day and 50-day moving averages, as well as prior wedge resistance. Although, that very well could be a buying opportunity for nimble bulls.
Top Trades for Tomorrow No. 3: American Airlines (AAL)
Click to Enlarge
Source: Chart courtesy of StockCharts.com
American Airlines (NASDAQ:AAL) has been very volatile over the last few months. Just look at the way shares made new lows in May — unlike almost every other stock at that time — before surging almost 200% in a matter of weeks.
Now down considerably from those highs in June, shares are back on the move on Wednesday. AAL stock climbed more than 16% on the day, as it rallies into a cluster of moving averages.
If it can clear all of these marks — with the 20-day, 50-day and 200-day moving averages between $12.69 and $13.25 — it puts two gap-fills on the table. Those come into play around $15 and $16, respectively, provided it can clear the tw0-week high at $14.29. Above that may put the 50% retracement on the table, near $19.50, but let’s not get ahead of ourselves.
The 7 Best Pharmaceutical Stocks That Go Beyond the Covid-19 Chase
Should these moving averages act as resistance, see if American Air fills the gap down near $11.50. Below $11 is a bad sign for bulls.
Top Stock Trades for Tomorrow No. 4: Beyond Meat (BYND)
Click to Enlarge
Source: Chart courtesy of StockCharts.com
Beyond Meat (NASDAQ:BYND) was moving nicely on the day. However, it still has to prove itself to the bulls.
While $125 is acting as support — after previously serving as resistance in January and February –Fwedn BYND still faces its 20-day and 50-day moving averages. Further, it has downtrend resistance (blue line) just overhead.
A move over $143.50 clears all of these marks, and puts the recent highs near $160 to $165 on the table. Below $125 could create issues for the bulls in the short term.
Top Trades for Tomorrow No. 5: UnitedHeath (UNH)
Click to Enlarge
Source: Chart courtesy of StockCharts.com
UnitedHealth Group (NYSE:UNH) looked like it was ready to run after it delivered an earnings beat before the open. However, shares were rejected from the $310 level.
On the plus side, $300 was prior resistance and seems to be holding as support, as shares look very ready to burst over $310 and run. If they do, it could put the 123.6% extension in play all the way up at $333.
On the downside, there is ample support between $290 and $300, including the 20-day and 50-day moving averages, as well as uptrend support (blue line). Some investors may prefer to wait and see if they can get a dip-buy in the $290s as opposed to buying now and hoping that $300 holds.
Below all of these support zones could put the $275 mark and the 200-day moving average on the table.
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 5 Top Stock Trades for Thursday: MRNA, AZN, AAL, BYND, UNH 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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3: American Airlines (AAL) Click to Enlarge Source: Chart courtesy of StockCharts.com American Airlines (NASDAQ:AAL) has been very volatile over the last few months. AAL stock climbed more than 16% on the day, as it rallies into a cluster of moving averages.
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Click to Enlarge Source: Chart courtesy of StockCharts.com American Airlines (NASDAQ:AAL) has been very volatile over the last few months. 3: American Airlines (AAL) AAL stock climbed more than 16% on the day, as it rallies into a cluster of moving averages.
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The post 5 Top Stock Trades for Thursday: MRNA, AZN, AAL, BYND, UNH appeared first on InvestorPlace. 3: American Airlines (AAL) Click to Enlarge Source: Chart courtesy of StockCharts.com American Airlines (NASDAQ:AAL) has been very volatile over the last few months.
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The post 5 Top Stock Trades for Thursday: MRNA, AZN, AAL, BYND, UNH appeared first on InvestorPlace. 3: American Airlines (AAL) Click to Enlarge Source: Chart courtesy of StockCharts.com American Airlines (NASDAQ:AAL) has been very volatile over the last few months.
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5538.0
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2020-07-15 00:00:00 UTC
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Why Airline Stocks Are Soaring on Wednesday
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AAL
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https://www.nasdaq.com/articles/why-airline-stocks-are-soaring-on-wednesday-2020-07-15
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nan
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nan
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What happened
Positive news on a new coronavirus vaccine helped lift airline shares in Wednesday midday trading. As of noon EDT, shares of American Airlines (NASDAQ: AAL) are leading the pack higher, up 7.8%, followed closely by fellow legacy carrier United Airlines (NASDAQ: UAL), with a 7.2% gain.
Discount flyers Spirit Airlines (NYSE: SAVE), JetBlue Airways (NASDAQ: JBLU), and Southwest Airlines (NYSE: LUV) are up 6.2%, 5.9%, and 4.9%, respectively. Delta Air Lines (NYSE: DAL) brings up the rear with a 4.2% gain.
Image source: Getty Images.
So what
The fact that Delta is flying at the tail end of the pack is no great surprise. Delta had a bad day yesterday when its Q2 earnings report showed a $7 billion pre-tax loss on diminished air travel in the age of coronavirus, and that news may be creating something of a hangover effect for the stock. Nevertheless, Delta is sharing in rising optimism for airline stocks in general today.
Why? In a nutshell, the news is this: Last night after close of trading, biotech Moderna released more detailed analysis of the phase 1 clinical trials of its new mRNA-1273 vaccine against COVID-19, about which we first heard back in May. The new analysis appears to confirm the initial positive findings from the vaccine trial, showing only moderate to mild side effects (mostly headaches, fatigue, chills, and muscle soreness) but the successful production of neutralizing antibodies in "100% of evaluated participants" no matter whether they were dosed with 25, 100, or 250 micrograms of vaccine.
A phase 2 trial of mRNA-1273 is already underway, and Moderna says it has produced sufficient new doses to begin its phase 3 clinical trial as planned on July 27 -- then to rapidly ramp up production to as many as 500 million or even 1 billion doses annually.
Now what
Most experts agree it will take either an effective treatment to cure coronavirus or a safe and effective vaccine to prevent the disease's contraction (or even better, both) to reassure people that it is safe to resume traveling, and in particular safe to resume flying again. Moderna's Tuesday news therefore seems absolutely critical to the revival of an airline industry that has seen its flights flown cut by 75% (Delta's estimate for September capacity) and its number of seats filled on those flights cut to just 60%. This fact alone explains why investors in airline stocks are so excited by Moderna's news today.
That being said, there are a few grains of salt worth taking. For one thing, in a note covering Moderna's news last night, analysts at J.P. Morgan observed that as "encouraging" as Moderna's results appear, it is still "difficult to know how this will ultimately translate to clinical outcomes" of patients threatened with COVID-19 infection.
At the same time, Delta itself warned yesterday that any future recovery in the airline business is expected to be "choppy," that "it will be more than two years before we see a sustainable recovery" in air travel, and that business travel in particular -- upon which Delta depends for more than half its revenues -- may never recover to prepandemic levels.
All of which goes to say, be happy for this week's vaccine news, sure. But don't expect it to be a miracle cure for the airline industry's woes. This recession isn't over yet.
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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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As of noon EDT, shares of American Airlines (NASDAQ: AAL) are leading the pack higher, up 7.8%, followed closely by fellow legacy carrier United Airlines (NASDAQ: UAL), with a 7.2% gain. What happened Positive news on a new coronavirus vaccine helped lift airline shares in Wednesday midday trading. Delta had a bad day yesterday when its Q2 earnings report showed a $7 billion pre-tax loss on diminished air travel in the age of coronavirus, and that news may be creating something of a hangover effect for the stock.
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As of noon EDT, shares of American Airlines (NASDAQ: AAL) are leading the pack higher, up 7.8%, followed closely by fellow legacy carrier United Airlines (NASDAQ: UAL), with a 7.2% gain. Discount flyers Spirit Airlines (NYSE: SAVE), JetBlue Airways (NASDAQ: JBLU), and Southwest Airlines (NYSE: LUV) are up 6.2%, 5.9%, and 4.9%, respectively. In a nutshell, the news is this: Last night after close of trading, biotech Moderna released more detailed analysis of the phase 1 clinical trials of its new mRNA-1273 vaccine against COVID-19, about which we first heard back in May.
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As of noon EDT, shares of American Airlines (NASDAQ: AAL) are leading the pack higher, up 7.8%, followed closely by fellow legacy carrier United Airlines (NASDAQ: UAL), with a 7.2% gain. Discount flyers Spirit Airlines (NYSE: SAVE), JetBlue Airways (NASDAQ: JBLU), and Southwest Airlines (NYSE: LUV) are up 6.2%, 5.9%, and 4.9%, respectively. At the same time, Delta itself warned yesterday that any future recovery in the airline business is expected to be "choppy," that "it will be more than two years before we see a sustainable recovery" in air travel, and that business travel in particular -- upon which Delta depends for more than half its revenues -- may never recover to prepandemic levels.
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As of noon EDT, shares of American Airlines (NASDAQ: AAL) are leading the pack higher, up 7.8%, followed closely by fellow legacy carrier United Airlines (NASDAQ: UAL), with a 7.2% gain. In a nutshell, the news is this: Last night after close of trading, biotech Moderna released more detailed analysis of the phase 1 clinical trials of its new mRNA-1273 vaccine against COVID-19, about which we first heard back in May. * 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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5539.0
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2020-07-15 00:00:00 UTC
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BUZZ-U.S. STOCKS ON THE MOVE-Moderna, Airlines, Gap, Apple
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AAL
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https://www.nasdaq.com/articles/buzz-u.s.-stocks-on-the-move-moderna-airlines-gap-apple-2020-07-15
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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. stock index futures rose on Wednesday as investors took heart from signs of progress in developing a COVID-19 vaccine, looking past record daily death rates in some states and brewing tensions between Washington and Beijing. .N
At 7:55 ET, Dow e-minis 1YMc1 were up 1.86% at 26,983. S&P 500 e-minis ESc1 were up 1.34% at 3,226, while Nasdaq 100 e-minis NQc1 were up 0.72% at 10,722.75. The top three NYSE percentage gainers premarket .PRPG.N: ** Fortress Value Acquisition Corp , up 21.3% ** Barnes & Noble Education Inc , up 19.4% ** Nubian Resources Ltd , up 13.3% The top three NYSE percentage losers premarket .PRPL.N: ** Hermitage Offshore Services Ltd , down 6.8% ** AptarGroup Inc , down 5.7% ** Enzo Biochem Inc , down 3.4% The top three Nasdaq percentage gainers premarket .PRPG.O: ** China Finance Online Co , up 155.4% ** Immutep Ltd , up 56.4% ** Capitala Finance Corp , up 41.5% The top three Nasdaq percentage losers premarket .PRPL.O: ** Perceptron Inc , down 15.2% ** Zynex Inc ZYXI.O, down 11.5% ** Cleveland Biolabs Inc , down 11% ** Moderna MRNA.O: up 17.4% premarket BUZZ-Street View: Moderna vaccine has potential for blockbuster sales
** Apple Inc AAPL.O: up 1.6% premarket BUZZ-Apple: Rises as co wins tax dispute against European Commission ** Zynex ZYXI.O: down 11.5% premarket BUZZ-Zynex drops after medical device firm prices stock offering ** American Airlines AAL.O: up 9.1% premarket ** United Airlines UAL.O: up 8.7% premarket ** Delta Air Lines DAL.N: up 6.5% premarket ** Southwest Airlines LUV.N: up 6.3% premarket BUZZ-U.S. airlines: Gain on hopes of a COVID-19 vaccine ** China Finance Online Co JRJC.O: up 155.4% premarket BUZZ-More than doubles on partnership with Dow Jones ** Gap GPS.N: up 6.3% premarket BUZZ-Gap rises on RBC upgrade
(Compiled by Bharath Manjesh in Bengaluru)
((Bharath.ManjeshR@thomsonreuters.com; outside U.S. +91 80 6749 2703;))
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 NYSE percentage gainers premarket .PRPG.N: ** Fortress Value Acquisition Corp , up 21.3% ** Barnes & Noble Education Inc , up 19.4% ** Nubian Resources Ltd , up 13.3% The top three NYSE percentage losers premarket .PRPL.N: ** Hermitage Offshore Services Ltd , down 6.8% ** AptarGroup Inc , down 5.7% ** Enzo Biochem Inc , down 3.4% The top three Nasdaq percentage gainers premarket .PRPG.O: ** China Finance Online Co , up 155.4% ** Immutep Ltd , up 56.4% ** Capitala Finance Corp , up 41.5% The top three Nasdaq percentage losers premarket .PRPL.O: ** Perceptron Inc , down 15.2% ** Zynex Inc ZYXI.O, down 11.5% ** Cleveland Biolabs Inc , down 11% ** Moderna MRNA.O: up 17.4% premarket BUZZ-Street View: Moderna vaccine has potential for blockbuster sales ** Apple Inc AAPL.O: up 1.6% premarket BUZZ-Apple: Rises as co wins tax dispute against European Commission ** Zynex ZYXI.O: down 11.5% premarket BUZZ-Zynex drops after medical device firm prices stock offering ** American Airlines AAL.O: up 9.1% premarket ** United Airlines UAL.O: up 8.7% premarket ** Delta Air Lines DAL.N: up 6.5% premarket ** Southwest Airlines LUV.N: up 6.3% premarket BUZZ-U.S. airlines: Gain on hopes of a COVID-19 vaccine ** China Finance Online Co JRJC.O: up 155.4% premarket BUZZ-More than doubles on partnership with Dow Jones ** Gap GPS.N: up 6.3% premarket BUZZ-Gap rises on RBC upgrade (Compiled by Bharath Manjesh in Bengaluru) ((Bharath.ManjeshR@thomsonreuters.com; outside U.S. +91 80 6749 2703;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. 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. stock index futures rose on Wednesday as investors took heart from signs of progress in developing a COVID-19 vaccine, looking past record daily death rates in some states and brewing tensions between Washington and Beijing. .N At 7:55 ET, Dow e-minis 1YMc1 were up 1.86% at 26,983.
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The top three NYSE percentage gainers premarket .PRPG.N: ** Fortress Value Acquisition Corp , up 21.3% ** Barnes & Noble Education Inc , up 19.4% ** Nubian Resources Ltd , up 13.3% The top three NYSE percentage losers premarket .PRPL.N: ** Hermitage Offshore Services Ltd , down 6.8% ** AptarGroup Inc , down 5.7% ** Enzo Biochem Inc , down 3.4% The top three Nasdaq percentage gainers premarket .PRPG.O: ** China Finance Online Co , up 155.4% ** Immutep Ltd , up 56.4% ** Capitala Finance Corp , up 41.5% The top three Nasdaq percentage losers premarket .PRPL.O: ** Perceptron Inc , down 15.2% ** Zynex Inc ZYXI.O, down 11.5% ** Cleveland Biolabs Inc , down 11% ** Moderna MRNA.O: up 17.4% premarket BUZZ-Street View: Moderna vaccine has potential for blockbuster sales ** Apple Inc AAPL.O: up 1.6% premarket BUZZ-Apple: Rises as co wins tax dispute against European Commission ** Zynex ZYXI.O: down 11.5% premarket BUZZ-Zynex drops after medical device firm prices stock offering ** American Airlines AAL.O: up 9.1% premarket ** United Airlines UAL.O: up 8.7% premarket ** Delta Air Lines DAL.N: up 6.5% premarket ** Southwest Airlines LUV.N: up 6.3% premarket BUZZ-U.S. airlines: Gain on hopes of a COVID-19 vaccine ** China Finance Online Co JRJC.O: up 155.4% premarket BUZZ-More than doubles on partnership with Dow Jones ** Gap GPS.N: up 6.3% premarket BUZZ-Gap rises on RBC upgrade (Compiled by Bharath Manjesh in Bengaluru) ((Bharath.ManjeshR@thomsonreuters.com; outside U.S. +91 80 6749 2703;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. 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. stock index futures rose on Wednesday as investors took heart from signs of progress in developing a COVID-19 vaccine, looking past record daily death rates in some states and brewing tensions between Washington and Beijing. .N At 7:55 ET, Dow e-minis 1YMc1 were up 1.86% at 26,983.
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The top three NYSE percentage gainers premarket .PRPG.N: ** Fortress Value Acquisition Corp , up 21.3% ** Barnes & Noble Education Inc , up 19.4% ** Nubian Resources Ltd , up 13.3% The top three NYSE percentage losers premarket .PRPL.N: ** Hermitage Offshore Services Ltd , down 6.8% ** AptarGroup Inc , down 5.7% ** Enzo Biochem Inc , down 3.4% The top three Nasdaq percentage gainers premarket .PRPG.O: ** China Finance Online Co , up 155.4% ** Immutep Ltd , up 56.4% ** Capitala Finance Corp , up 41.5% The top three Nasdaq percentage losers premarket .PRPL.O: ** Perceptron Inc , down 15.2% ** Zynex Inc ZYXI.O, down 11.5% ** Cleveland Biolabs Inc , down 11% ** Moderna MRNA.O: up 17.4% premarket BUZZ-Street View: Moderna vaccine has potential for blockbuster sales ** Apple Inc AAPL.O: up 1.6% premarket BUZZ-Apple: Rises as co wins tax dispute against European Commission ** Zynex ZYXI.O: down 11.5% premarket BUZZ-Zynex drops after medical device firm prices stock offering ** American Airlines AAL.O: up 9.1% premarket ** United Airlines UAL.O: up 8.7% premarket ** Delta Air Lines DAL.N: up 6.5% premarket ** Southwest Airlines LUV.N: up 6.3% premarket BUZZ-U.S. airlines: Gain on hopes of a COVID-19 vaccine ** China Finance Online Co JRJC.O: up 155.4% premarket BUZZ-More than doubles on partnership with Dow Jones ** Gap GPS.N: up 6.3% premarket BUZZ-Gap rises on RBC upgrade (Compiled by Bharath Manjesh in Bengaluru) ((Bharath.ManjeshR@thomsonreuters.com; outside U.S. +91 80 6749 2703;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. 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. stock index futures rose on Wednesday as investors took heart from signs of progress in developing a COVID-19 vaccine, looking past record daily death rates in some states and brewing tensions between Washington and Beijing. S&P 500 e-minis ESc1 were up 1.34% at 3,226, while Nasdaq 100 e-minis NQc1 were up 0.72% at 10,722.75.
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The top three NYSE percentage gainers premarket .PRPG.N: ** Fortress Value Acquisition Corp , up 21.3% ** Barnes & Noble Education Inc , up 19.4% ** Nubian Resources Ltd , up 13.3% The top three NYSE percentage losers premarket .PRPL.N: ** Hermitage Offshore Services Ltd , down 6.8% ** AptarGroup Inc , down 5.7% ** Enzo Biochem Inc , down 3.4% The top three Nasdaq percentage gainers premarket .PRPG.O: ** China Finance Online Co , up 155.4% ** Immutep Ltd , up 56.4% ** Capitala Finance Corp , up 41.5% The top three Nasdaq percentage losers premarket .PRPL.O: ** Perceptron Inc , down 15.2% ** Zynex Inc ZYXI.O, down 11.5% ** Cleveland Biolabs Inc , down 11% ** Moderna MRNA.O: up 17.4% premarket BUZZ-Street View: Moderna vaccine has potential for blockbuster sales ** Apple Inc AAPL.O: up 1.6% premarket BUZZ-Apple: Rises as co wins tax dispute against European Commission ** Zynex ZYXI.O: down 11.5% premarket BUZZ-Zynex drops after medical device firm prices stock offering ** American Airlines AAL.O: up 9.1% premarket ** United Airlines UAL.O: up 8.7% premarket ** Delta Air Lines DAL.N: up 6.5% premarket ** Southwest Airlines LUV.N: up 6.3% premarket BUZZ-U.S. airlines: Gain on hopes of a COVID-19 vaccine ** China Finance Online Co JRJC.O: up 155.4% premarket BUZZ-More than doubles on partnership with Dow Jones ** Gap GPS.N: up 6.3% premarket BUZZ-Gap rises on RBC upgrade (Compiled by Bharath Manjesh in Bengaluru) ((Bharath.ManjeshR@thomsonreuters.com; outside U.S. +91 80 6749 2703;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. 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. stock index futures rose on Wednesday as investors took heart from signs of progress in developing a COVID-19 vaccine, looking past record daily death rates in some states and brewing tensions between Washington and Beijing. .N At 7:55 ET, Dow e-minis 1YMc1 were up 1.86% at 26,983.
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5540.0
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2020-07-15 00:00:00 UTC
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BUZZ-U.S. STOCKS ON THE MOVE-Goldman, Moderna, Gap, BNY Mellon, airlines
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AAL
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https://www.nasdaq.com/articles/buzz-u.s.-stocks-on-the-move-goldman-moderna-gap-bny-mellon-airlines-2020-07-15
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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
Wall Street gained on Wednesday with the S&P 500 hitting its highest in more than four months following a strong quarterly showing by Goldman Sachs and promising early data for a potential COVID-19 vaccine. .N
At 11:46 ET, the Dow Jones Industrial Average .DJI was up 0.50% at 26,776.62. The S&P 500 .SPX was up 0.87% at 3,225.24 and the Nasdaq Composite .IXIC was up 0.37% at 10,527.006. The top three S&P 500 .PG.INX percentage gainers: ** Royal Caribbean Cruises Ltd , up 17% ** Waters Corp , up 14.5% ** Norwegian Cruise Line Holdings Ltd , up 14.4% The top three S&P 500 .PL.INX percentage losers: ** BNY Mellon , down 6.9% ** Fortinet , down 5.8% ** Amazon Com , down 2.8% The top two NYSE .PG.N percentage gainers: ** Bloom Energy Corp , up 30.3% ** Barnes & Noble Education Inc , up 21.1% The top three Nasdaq .PG.O percentage gainers: ** China Finance Online Co , up 156.4% ** Genetic Technologies Ltd , up 146.2% ** Taiwan Liposome Company Ltd , up 65.8% The top three Nasdaq .PL.O percentage losers: ** Perceptron Inc , down 27.4% ** Cleveland BioLabs Inc , down 26.9% ** Sphere 3D Corp , down 23.7% ** Moderna MRNA.O: up 7.0% BUZZ-Record high on promising data from early COVID-19 vaccine trial BUZZ-Street View: Moderna vaccine has potential for blockbuster sales ** Zynex ZYXI.O: down 11.1% BUZZ-Zynex drops after medical device firm prices stock offering ** American Airlines AAL.O: up 8.8% ** United Airlines UAL.O: up 8.1% ** Delta Air Lines DAL.N: up 5.1% ** Southwest Airlines LUV.N: up 5.7% BUZZ-U.S. airlines: Gain on hopes of a COVID-19 vaccine ** China Finance Online Co JRJC.O: up 156.4% BUZZ-More than doubles on partnership with Dow Jones ** Gap GPS.N: up 9.1% BUZZ-Gap rises on RBC upgrade ** Immutep Ltd IMMP.O: up 48.6% BUZZ-Jumps on U.S. patent for cancer treatment ** Goldman Sachs GS.N: up 0.9% BUZZ-Rises as trading, underwriting gains boost Q2 profit ** Can-Fite Biopharma CPTA.O: up 30.5% BUZZ-Can-Fite Biopharma gains as potential COVID-19 drug nears clinical trial ** Capitala Finance CPTA.O: up 30.5% BUZZ-Surges on receiving repayments from portfolio companies ** Sphere 3D Corp ANY.O: down 23.7%
BUZZ-Jumps on acquisition of Rainmaker Worldwide ** Chevron Corp CVX.N: up 0.4% ** Exxon Mobil XOM.N: up 0.7%
BUZZ-Rise on drop in U.S. crude inventories, OPEC+ meeting hopes ** Moleculin MBRX.O: up 50.3%
BUZZ-Up on deal to expand development of potential COVID-19 drug ** Organogenesis Holdings ORGO.O: up 14.3%
BUZZ-Jumps on upbeat Q2 revenue forecast ** FLIR Systems FLIR.O: up 3.0%
BUZZ-Rises on upbeat Q2 revenue outlook ** Oramed Pharma ORMP.O: up 6.4%
BUZZ-Up on positive FDA feedback for oral insulin ** LMP Automotive LMPX.O: up 1.9%
BUZZ-Rises on upbeat Q2 forecast ** Fortress Value Acquisition FVAC.N: up 10.9%
BUZZ-Fortress Value Acquisition enters deal to take rare earth miner public, shares up ** ForeScout Technologies FSCT.O: up 15.4%
BUZZ-Jumps on revised $1.43 bln buyout deal with Advent ** BNY Mellon BK.N: down 6.9%
BUZZ-BNY Mellon biggest S&P loser after CEO signals caution ** Atossa ATOS.O: up 10.4%
BUZZ-Atossa rises on positive lab results of potential COVID-19 nasal spray ** Waters Corp WAT.N: up 14.5%
BUZZ-Eyes best day in 11 yrs on estimated sales beat, new CEO ** Otonomy OTIC.O: up 5.6%
BUZZ-Hits two-year high as Steven Cohen's Point72 reports passive stake
The 11 major S&P 500 sectors:
Communication Services
.SPLRCL
down 0.20%
Consumer Discretionary
.SPLRCD
down 0.36%
Consumer Staples
.SPLRCS
up 0.76%
Energy
.SPNY
up 1.02%
Financial
.SPSY
up 1.17%
Health
.SPXHC
up 0.90%
Industrial
.SPLRCI
up 2.00%
Information Technology
.SPLRCT
down 0.11%
Materials
.SPLRCM
up 1.47%
Real Estate
.SPLRCR
up 0.31%
Utilities
.SPLRCU
up 0.56%
(Compiled by Bharath Manjesh in Bengaluru)
((Bharath.ManjeshR@thomsonreuters.com; outside U.S. +91 80 6749 2703;))
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: ** Royal Caribbean Cruises Ltd , up 17% ** Waters Corp , up 14.5% ** Norwegian Cruise Line Holdings Ltd , up 14.4% The top three S&P 500 .PL.INX percentage losers: ** BNY Mellon , down 6.9% ** Fortinet , down 5.8% ** Amazon Com , down 2.8% The top two NYSE .PG.N percentage gainers: ** Bloom Energy Corp , up 30.3% ** Barnes & Noble Education Inc , up 21.1% The top three Nasdaq .PG.O percentage gainers: ** China Finance Online Co , up 156.4% ** Genetic Technologies Ltd , up 146.2% ** Taiwan Liposome Company Ltd , up 65.8% The top three Nasdaq .PL.O percentage losers: ** Perceptron Inc , down 27.4% ** Cleveland BioLabs Inc , down 26.9% ** Sphere 3D Corp , down 23.7% ** Moderna MRNA.O: up 7.0% BUZZ-Record high on promising data from early COVID-19 vaccine trial BUZZ-Street View: Moderna vaccine has potential for blockbuster sales ** Zynex ZYXI.O: down 11.1% BUZZ-Zynex drops after medical device firm prices stock offering ** American Airlines AAL.O: up 8.8% ** United Airlines UAL.O: up 8.1% ** Delta Air Lines DAL.N: up 5.1% ** Southwest Airlines LUV.N: up 5.7% BUZZ-U.S. airlines: Gain on hopes of a COVID-19 vaccine ** China Finance Online Co JRJC.O: up 156.4% BUZZ-More than doubles on partnership with Dow Jones ** Gap GPS.N: up 9.1% BUZZ-Gap rises on RBC upgrade ** Immutep Ltd IMMP.O: up 48.6% BUZZ-Jumps on U.S. patent for cancer treatment ** Goldman Sachs GS.N: up 0.9% BUZZ-Rises as trading, underwriting gains boost Q2 profit ** Can-Fite Biopharma CPTA.O: up 30.5% BUZZ-Can-Fite Biopharma gains as potential COVID-19 drug nears clinical trial ** Capitala Finance CPTA.O: up 30.5% BUZZ-Surges on receiving repayments from portfolio companies ** Sphere 3D Corp ANY.O: down 23.7% BUZZ-Jumps on acquisition of Rainmaker Worldwide ** Chevron Corp CVX.N: up 0.4% ** Exxon Mobil XOM.N: up 0.7% BUZZ-Rise on drop in U.S. crude inventories, OPEC+ meeting hopes ** Moleculin MBRX.O: up 50.3% BUZZ-Up on deal to expand development of potential COVID-19 drug ** Organogenesis Holdings ORGO.O: up 14.3% BUZZ-Jumps on upbeat Q2 revenue forecast ** FLIR Systems FLIR.O: up 3.0% BUZZ-Rises on upbeat Q2 revenue outlook ** Oramed Pharma ORMP.O: up 6.4% BUZZ-Up on positive FDA feedback for oral insulin ** LMP Automotive LMPX.O: up 1.9% BUZZ-Rises on upbeat Q2 forecast ** Fortress Value Acquisition FVAC.N: up 10.9% BUZZ-Fortress Value Acquisition enters deal to take rare earth miner public, shares up ** ForeScout Technologies FSCT.O: up 15.4% BUZZ-Jumps on revised $1.43 bln buyout deal with Advent ** BNY Mellon BK.N: down 6.9% BUZZ-BNY Mellon biggest S&P loser after CEO signals caution ** Atossa ATOS.O: up 10.4% BUZZ-Atossa rises on positive lab results of potential COVID-19 nasal spray ** Waters Corp WAT.N: up 14.5% BUZZ-Eyes best day in 11 yrs on estimated sales beat, new CEO ** Otonomy OTIC.O: up 5.6% BUZZ-Hits two-year high as Steven Cohen's Point72 reports passive stake 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 Wall Street gained on Wednesday with the S&P 500 hitting its highest in more than four months following a strong quarterly showing by Goldman Sachs and promising early data for a potential COVID-19 vaccine. up 0.56% (Compiled by Bharath Manjesh in Bengaluru) ((Bharath.ManjeshR@thomsonreuters.com; outside U.S. +91 80 6749 2703;)) 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: ** Royal Caribbean Cruises Ltd , up 17% ** Waters Corp , up 14.5% ** Norwegian Cruise Line Holdings Ltd , up 14.4% The top three S&P 500 .PL.INX percentage losers: ** BNY Mellon , down 6.9% ** Fortinet , down 5.8% ** Amazon Com , down 2.8% The top two NYSE .PG.N percentage gainers: ** Bloom Energy Corp , up 30.3% ** Barnes & Noble Education Inc , up 21.1% The top three Nasdaq .PG.O percentage gainers: ** China Finance Online Co , up 156.4% ** Genetic Technologies Ltd , up 146.2% ** Taiwan Liposome Company Ltd , up 65.8% The top three Nasdaq .PL.O percentage losers: ** Perceptron Inc , down 27.4% ** Cleveland BioLabs Inc , down 26.9% ** Sphere 3D Corp , down 23.7% ** Moderna MRNA.O: up 7.0% BUZZ-Record high on promising data from early COVID-19 vaccine trial BUZZ-Street View: Moderna vaccine has potential for blockbuster sales ** Zynex ZYXI.O: down 11.1% BUZZ-Zynex drops after medical device firm prices stock offering ** American Airlines AAL.O: up 8.8% ** United Airlines UAL.O: up 8.1% ** Delta Air Lines DAL.N: up 5.1% ** Southwest Airlines LUV.N: up 5.7% BUZZ-U.S. airlines: Gain on hopes of a COVID-19 vaccine ** China Finance Online Co JRJC.O: up 156.4% BUZZ-More than doubles on partnership with Dow Jones ** Gap GPS.N: up 9.1% BUZZ-Gap rises on RBC upgrade ** Immutep Ltd IMMP.O: up 48.6% BUZZ-Jumps on U.S. patent for cancer treatment ** Goldman Sachs GS.N: up 0.9% BUZZ-Rises as trading, underwriting gains boost Q2 profit ** Can-Fite Biopharma CPTA.O: up 30.5% BUZZ-Can-Fite Biopharma gains as potential COVID-19 drug nears clinical trial ** Capitala Finance CPTA.O: up 30.5% BUZZ-Surges on receiving repayments from portfolio companies ** Sphere 3D Corp ANY.O: down 23.7% BUZZ-Jumps on acquisition of Rainmaker Worldwide ** Chevron Corp CVX.N: up 0.4% ** Exxon Mobil XOM.N: up 0.7% BUZZ-Rise on drop in U.S. crude inventories, OPEC+ meeting hopes ** Moleculin MBRX.O: up 50.3% BUZZ-Up on deal to expand development of potential COVID-19 drug ** Organogenesis Holdings ORGO.O: up 14.3% BUZZ-Jumps on upbeat Q2 revenue forecast ** FLIR Systems FLIR.O: up 3.0% BUZZ-Rises on upbeat Q2 revenue outlook ** Oramed Pharma ORMP.O: up 6.4% BUZZ-Up on positive FDA feedback for oral insulin ** LMP Automotive LMPX.O: up 1.9% BUZZ-Rises on upbeat Q2 forecast ** Fortress Value Acquisition FVAC.N: up 10.9% BUZZ-Fortress Value Acquisition enters deal to take rare earth miner public, shares up ** ForeScout Technologies FSCT.O: up 15.4% BUZZ-Jumps on revised $1.43 bln buyout deal with Advent ** BNY Mellon BK.N: down 6.9% BUZZ-BNY Mellon biggest S&P loser after CEO signals caution ** Atossa ATOS.O: up 10.4% BUZZ-Atossa rises on positive lab results of potential COVID-19 nasal spray ** Waters Corp WAT.N: up 14.5% BUZZ-Eyes best day in 11 yrs on estimated sales beat, new CEO ** Otonomy OTIC.O: up 5.6% BUZZ-Hits two-year high as Steven Cohen's Point72 reports passive stake 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 Wall Street gained on Wednesday with the S&P 500 hitting its highest in more than four months following a strong quarterly showing by Goldman Sachs and promising early data for a potential COVID-19 vaccine. .N At 11:46 ET, the Dow Jones Industrial Average .DJI was up 0.50% at 26,776.62.
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The top three S&P 500 .PG.INX percentage gainers: ** Royal Caribbean Cruises Ltd , up 17% ** Waters Corp , up 14.5% ** Norwegian Cruise Line Holdings Ltd , up 14.4% The top three S&P 500 .PL.INX percentage losers: ** BNY Mellon , down 6.9% ** Fortinet , down 5.8% ** Amazon Com , down 2.8% The top two NYSE .PG.N percentage gainers: ** Bloom Energy Corp , up 30.3% ** Barnes & Noble Education Inc , up 21.1% The top three Nasdaq .PG.O percentage gainers: ** China Finance Online Co , up 156.4% ** Genetic Technologies Ltd , up 146.2% ** Taiwan Liposome Company Ltd , up 65.8% The top three Nasdaq .PL.O percentage losers: ** Perceptron Inc , down 27.4% ** Cleveland BioLabs Inc , down 26.9% ** Sphere 3D Corp , down 23.7% ** Moderna MRNA.O: up 7.0% BUZZ-Record high on promising data from early COVID-19 vaccine trial BUZZ-Street View: Moderna vaccine has potential for blockbuster sales ** Zynex ZYXI.O: down 11.1% BUZZ-Zynex drops after medical device firm prices stock offering ** American Airlines AAL.O: up 8.8% ** United Airlines UAL.O: up 8.1% ** Delta Air Lines DAL.N: up 5.1% ** Southwest Airlines LUV.N: up 5.7% BUZZ-U.S. airlines: Gain on hopes of a COVID-19 vaccine ** China Finance Online Co JRJC.O: up 156.4% BUZZ-More than doubles on partnership with Dow Jones ** Gap GPS.N: up 9.1% BUZZ-Gap rises on RBC upgrade ** Immutep Ltd IMMP.O: up 48.6% BUZZ-Jumps on U.S. patent for cancer treatment ** Goldman Sachs GS.N: up 0.9% BUZZ-Rises as trading, underwriting gains boost Q2 profit ** Can-Fite Biopharma CPTA.O: up 30.5% BUZZ-Can-Fite Biopharma gains as potential COVID-19 drug nears clinical trial ** Capitala Finance CPTA.O: up 30.5% BUZZ-Surges on receiving repayments from portfolio companies ** Sphere 3D Corp ANY.O: down 23.7% BUZZ-Jumps on acquisition of Rainmaker Worldwide ** Chevron Corp CVX.N: up 0.4% ** Exxon Mobil XOM.N: up 0.7% BUZZ-Rise on drop in U.S. crude inventories, OPEC+ meeting hopes ** Moleculin MBRX.O: up 50.3% BUZZ-Up on deal to expand development of potential COVID-19 drug ** Organogenesis Holdings ORGO.O: up 14.3% BUZZ-Jumps on upbeat Q2 revenue forecast ** FLIR Systems FLIR.O: up 3.0% BUZZ-Rises on upbeat Q2 revenue outlook ** Oramed Pharma ORMP.O: up 6.4% BUZZ-Up on positive FDA feedback for oral insulin ** LMP Automotive LMPX.O: up 1.9% BUZZ-Rises on upbeat Q2 forecast ** Fortress Value Acquisition FVAC.N: up 10.9% BUZZ-Fortress Value Acquisition enters deal to take rare earth miner public, shares up ** ForeScout Technologies FSCT.O: up 15.4% BUZZ-Jumps on revised $1.43 bln buyout deal with Advent ** BNY Mellon BK.N: down 6.9% BUZZ-BNY Mellon biggest S&P loser after CEO signals caution ** Atossa ATOS.O: up 10.4% BUZZ-Atossa rises on positive lab results of potential COVID-19 nasal spray ** Waters Corp WAT.N: up 14.5% BUZZ-Eyes best day in 11 yrs on estimated sales beat, new CEO ** Otonomy OTIC.O: up 5.6% BUZZ-Hits two-year high as Steven Cohen's Point72 reports passive stake The 11 major S&P 500 sectors: Communication Services down 0.20% Consumer Discretionary down 0.36% Consumer Staples
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The top three S&P 500 .PG.INX percentage gainers: ** Royal Caribbean Cruises Ltd , up 17% ** Waters Corp , up 14.5% ** Norwegian Cruise Line Holdings Ltd , up 14.4% The top three S&P 500 .PL.INX percentage losers: ** BNY Mellon , down 6.9% ** Fortinet , down 5.8% ** Amazon Com , down 2.8% The top two NYSE .PG.N percentage gainers: ** Bloom Energy Corp , up 30.3% ** Barnes & Noble Education Inc , up 21.1% The top three Nasdaq .PG.O percentage gainers: ** China Finance Online Co , up 156.4% ** Genetic Technologies Ltd , up 146.2% ** Taiwan Liposome Company Ltd , up 65.8% The top three Nasdaq .PL.O percentage losers: ** Perceptron Inc , down 27.4% ** Cleveland BioLabs Inc , down 26.9% ** Sphere 3D Corp , down 23.7% ** Moderna MRNA.O: up 7.0% BUZZ-Record high on promising data from early COVID-19 vaccine trial BUZZ-Street View: Moderna vaccine has potential for blockbuster sales ** Zynex ZYXI.O: down 11.1% BUZZ-Zynex drops after medical device firm prices stock offering ** American Airlines AAL.O: up 8.8% ** United Airlines UAL.O: up 8.1% ** Delta Air Lines DAL.N: up 5.1% ** Southwest Airlines LUV.N: up 5.7% BUZZ-U.S. airlines: Gain on hopes of a COVID-19 vaccine ** China Finance Online Co JRJC.O: up 156.4% BUZZ-More than doubles on partnership with Dow Jones ** Gap GPS.N: up 9.1% BUZZ-Gap rises on RBC upgrade ** Immutep Ltd IMMP.O: up 48.6% BUZZ-Jumps on U.S. patent for cancer treatment ** Goldman Sachs GS.N: up 0.9% BUZZ-Rises as trading, underwriting gains boost Q2 profit ** Can-Fite Biopharma CPTA.O: up 30.5% BUZZ-Can-Fite Biopharma gains as potential COVID-19 drug nears clinical trial ** Capitala Finance CPTA.O: up 30.5% BUZZ-Surges on receiving repayments from portfolio companies ** Sphere 3D Corp ANY.O: down 23.7% BUZZ-Jumps on acquisition of Rainmaker Worldwide ** Chevron Corp CVX.N: up 0.4% ** Exxon Mobil XOM.N: up 0.7% BUZZ-Rise on drop in U.S. crude inventories, OPEC+ meeting hopes ** Moleculin MBRX.O: up 50.3% BUZZ-Up on deal to expand development of potential COVID-19 drug ** Organogenesis Holdings ORGO.O: up 14.3% BUZZ-Jumps on upbeat Q2 revenue forecast ** FLIR Systems FLIR.O: up 3.0% BUZZ-Rises on upbeat Q2 revenue outlook ** Oramed Pharma ORMP.O: up 6.4% BUZZ-Up on positive FDA feedback for oral insulin ** LMP Automotive LMPX.O: up 1.9% BUZZ-Rises on upbeat Q2 forecast ** Fortress Value Acquisition FVAC.N: up 10.9% BUZZ-Fortress Value Acquisition enters deal to take rare earth miner public, shares up ** ForeScout Technologies FSCT.O: up 15.4% BUZZ-Jumps on revised $1.43 bln buyout deal with Advent ** BNY Mellon BK.N: down 6.9% BUZZ-BNY Mellon biggest S&P loser after CEO signals caution ** Atossa ATOS.O: up 10.4% BUZZ-Atossa rises on positive lab results of potential COVID-19 nasal spray ** Waters Corp WAT.N: up 14.5% BUZZ-Eyes best day in 11 yrs on estimated sales beat, new CEO ** Otonomy OTIC.O: up 5.6% BUZZ-Hits two-year high as Steven Cohen's Point72 reports passive stake 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 Wall Street gained on Wednesday with the S&P 500 hitting its highest in more than four months following a strong quarterly showing by Goldman Sachs and promising early data for a potential COVID-19 vaccine. .N At 11:46 ET, the Dow Jones Industrial Average .DJI was up 0.50% at 26,776.62.
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5541.0
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2020-07-14 00:00:00 UTC
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Botswana central bank seeks law to preserve shrinking sovereign wealth fund
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AAL
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https://www.nasdaq.com/articles/botswana-central-bank-seeks-law-to-preserve-shrinking-sovereign-wealth-fund-2020-07-14
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nan
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nan
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By Brian Benza
Gaborone, BOTSWANA July 14 (Reuters) - The Bank of Botswana will seek legislation to limit access to its sovereign wealth fund, a central bank official said on Tuesday, as it seeks to stem a steady fall in the fund's reserves often tapped to meet budget deficits.
"At the moment the fund doesn't work strictly like a sovereign wealth fund as it does not have rules that guide withdrawals and replenishments," Caster Moseki, acting director of financial markets at the bank, said of the Pula Fund.
He did not disclose details on when the bank would approach the government for the requested legislation.
Plans to limit a regular dip into the Pula Fund, which has reserves equivalent to 7% of GDP, comes at a time when Botswana's diamond revenues - the main source of the fund - are likely to fall sharply due to the impact of the coronavirus.
De Beers, controlled by Anglo American Plc AAL.L, which sells the bulk of Botswana's diamond production, has been unable to hold sales since March due to the pandemic.
Declining diamond revenues are expected to widen Botswana's balance of payments deficit that stood at 12 billion Pula ($1.03 billion) in 2019, raising fears of further withdrawals from the sovereign wealth fund this year.
Instead of drawing down on savings, Moseki said the government could look to fund expenditures from the domestic capital market which is awash with cash.
Botswana, a southern African country of 2.2 million, has over the years channelled excess diamond revenues into the Pula Fund, managed by the central bank. But recurring budget deficits in recent years has forced the government to tap into the fund to support its spending.
The soverign wealth fund, most of it invested overseas, has declined from 20% of GDP in 2011 to around 7% of GDP in May 2020, or around 15 billion pula.
($1 = 11.6279 pulas)
(Reporting by Brian Benza Editing by Promit Mukherjee)
((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, controlled by Anglo American Plc AAL.L, which sells the bulk of Botswana's diamond production, has been unable to hold sales since March due to the pandemic. By Brian Benza Gaborone, BOTSWANA July 14 (Reuters) - The Bank of Botswana will seek legislation to limit access to its sovereign wealth fund, a central bank official said on Tuesday, as it seeks to stem a steady fall in the fund's reserves often tapped to meet budget deficits. Botswana, a southern African country of 2.2 million, has over the years channelled excess diamond revenues into the Pula Fund, managed by the central bank.
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De Beers, controlled by Anglo American Plc AAL.L, which sells the bulk of Botswana's diamond production, has been unable to hold sales since March due to the pandemic. By Brian Benza Gaborone, BOTSWANA July 14 (Reuters) - The Bank of Botswana will seek legislation to limit access to its sovereign wealth fund, a central bank official said on Tuesday, as it seeks to stem a steady fall in the fund's reserves often tapped to meet budget deficits. Declining diamond revenues are expected to widen Botswana's balance of payments deficit that stood at 12 billion Pula ($1.03 billion) in 2019, raising fears of further withdrawals from the sovereign wealth fund this year.
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De Beers, controlled by Anglo American Plc AAL.L, which sells the bulk of Botswana's diamond production, has been unable to hold sales since March due to the pandemic. By Brian Benza Gaborone, BOTSWANA July 14 (Reuters) - The Bank of Botswana will seek legislation to limit access to its sovereign wealth fund, a central bank official said on Tuesday, as it seeks to stem a steady fall in the fund's reserves often tapped to meet budget deficits. "At the moment the fund doesn't work strictly like a sovereign wealth fund as it does not have rules that guide withdrawals and replenishments," Caster Moseki, acting director of financial markets at the bank, said of the Pula Fund.
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De Beers, controlled by Anglo American Plc AAL.L, which sells the bulk of Botswana's diamond production, has been unable to hold sales since March due to the pandemic. By Brian Benza Gaborone, BOTSWANA July 14 (Reuters) - The Bank of Botswana will seek legislation to limit access to its sovereign wealth fund, a central bank official said on Tuesday, as it seeks to stem a steady fall in the fund's reserves often tapped to meet budget deficits. "At the moment the fund doesn't work strictly like a sovereign wealth fund as it does not have rules that guide withdrawals and replenishments," Caster Moseki, acting director of financial markets at the bank, said of the Pula Fund.
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5542.0
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2020-07-14 00:00:00 UTC
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Here’s Another Reason Why Southwest Isn’t the Best Airline Option Available
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AAL
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https://www.nasdaq.com/articles/heres-another-reason-why-southwest-isnt-the-best-airline-option-available-2020-07-14
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
InvestorPlace’s Chris Lau recently stated that Southwest Airlines (NYSE:LUV) and LUV stock is the best bet for an air travel recovery.
Source: Jeramey Lende / Shutterstock.com
I have to say, while I believe Southwest is hands down, the best airline operating in the U.S. today — not to mention the strongest financially — I still think the smarter bet is to buy the U.S. Global Jets ETF (NYSEARCA:JETS).
Here’s why.
The World’s a Big Place
One particular paragraph of my colleague’s article made me think of another reason I like the ETF so much.
“When it comes to the ability to recover, Southwest is one of the best-positioned airlines in the U.S. Even though its prospects are uncertain in the next few weeks, investors looking for airline stocks should watch this one first,” Chris wrote July 9.
The key words being the United States.
10 Micro-Cap Stocks to Buy Today for Value and Growth
The world is a big place. We have no idea how fast the American economy will recover now that the country is in full-on panic mode, as the number of novel coronavirus cases reaches record levels.
This is important for two reasons.
Southwest Can’t Afford Another U.S. Shutdown
Southwest operates exclusively in the U.S. If the domestic economy goes into the tank, and people refuse to get on airplanes — middle seat or not — Southwest’s business will be the most affected by a slowdown.
According to Forbes Aerospace & Defense contributor Will Horton, United Airlines (NASDAQ:UAL) generated $16.3 billion in international revenue in 2019, most of the four major airlines not named Southwest. So, that’s 38% of United’s overall revenue. Delta Airlines (NYSE:DAL) had $11.9 billion in international revenue in 2019 (28%), while American Airlines (NASDAQ:AAL) came in third place with $11.1 billion in international revenue (26%).
To put context to Horton’s article, he’s discussing how United’s reliance on international flights could hurt it as the U.S. travel recovery accelerates. And even though the airline is adding domestic flights in a hurry, the ban on travel by Americans to the European Union could hurt it. He points out that United’s business to Europe is its most significant international segment at $7.4 billion, followed by Asia at $5.1 billion, and Latin America at $3.8 billion.
That’s a solid premise.
Horton adds to his argument, pointing out that United has too many wide-body aircraft compared to its peers. And those planes can’t easily be redeployed to the domestic market.
But what happens if these three international markets experience an economic renaissance while the U.S. flounders under its directionless leadership? Southwest and all the other airlines relying on a domestic economic recovery are up the creek without a paddle.
Geographic Diversification
Should the U.S. shutdown again, United CEO Scott Kirby ought to be tickled pink that he has almost 200 wide-body jets to service the global air traveler. Here in the U.S., we tend to forget that there’s a whole world beyond our borders doing business and making money. United’s weakness could become its strength.
Meanwhile, what does Southwest do in this situation? It has no backup plan. It’s America or Bust.
Now, like most things in life, what happens in situations like this is usually somewhere in the middle between a worst-case and best-case scenario. So, given Southwest’s better prepared for a more extended downturn than its three peers, it ought to survive a second shutdown.
This brings me to the topic of geographic diversification.
JETS has a U.S. weighting of 68.44%. Add Canada into the domestic mix (7.57%) and you get a 75/25 split between domestic and international airline-related companies.
While I’d like that to be a little more balanced, it still gives you some protection against a U.S. meltdown. Further, if you add to this the international business of the U.S. airlines we’ve been talking about along with Air Canada (OTCMKTS:ACDVF), it might bump the figure to 65/35.
It isn’t perfect, but it does a better job of balancing risk and reward than betting on Southwest stock exclusively.
The Bottom Line on LUV Stock
In the past, I’ve come up with recommendations that balance an investor’s desire to bet on one particular stock with the understanding that company risk is real.
So, for example, in July 2018, I suggested that if you wanted to put X amount into Canopy Growth (NYSE:CGC), you take half the amount and put it into Constellation Brands (NYSE:STZ). Alternatively, you could have put 50% into the ETFMG Alternative Harvest ETF (NYSEARCA:MJ).
Here’s how you would have done under all three scenarios:
100% Canopy Growth = -43.9%
50% Canopy & 50% Constellation = -28.0%
50% Canopy & 50% MJ = -48.0%
Unfortunately, the cannabis industry in Canada took a major step back in 2019 but now seems to be slowly getting its act together. Long-term, I don’t think a 50/50 split between Canopy and MJ is a bad decision.
Applying this philosophy to JETS, if you want to bet on LUV, the wiser play remains a 50/50 split between the two.
Sure, you might not make as much should Southwest and the entire airline industry take off, but successful investing is often about protecting your downside than it is reaching for the stars.
Happy Travels!
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 Here’s Another Reason Why Southwest Isn’t the Best Airline Option Available 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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Delta Airlines (NYSE:DAL) had $11.9 billion in international revenue in 2019 (28%), while American Airlines (NASDAQ:AAL) came in third place with $11.1 billion in international revenue (26%). Source: Jeramey Lende / Shutterstock.com I have to say, while I believe Southwest is hands down, the best airline operating in the U.S. today — not to mention the strongest financially — I still think the smarter bet is to buy the U.S. We have no idea how fast the American economy will recover now that the country is in full-on panic mode, as the number of novel coronavirus cases reaches record levels.
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Delta Airlines (NYSE:DAL) had $11.9 billion in international revenue in 2019 (28%), while American Airlines (NASDAQ:AAL) came in third place with $11.1 billion in international revenue (26%). InvestorPlace - Stock Market News, Stock Advice & Trading Tips InvestorPlace’s Chris Lau recently stated that Southwest Airlines (NYSE:LUV) and LUV stock is the best bet for an air travel recovery. Global Jets ETF (NYSEARCA:JETS).
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Delta Airlines (NYSE:DAL) had $11.9 billion in international revenue in 2019 (28%), while American Airlines (NASDAQ:AAL) came in third place with $11.1 billion in international revenue (26%). InvestorPlace - Stock Market News, Stock Advice & Trading Tips InvestorPlace’s Chris Lau recently stated that Southwest Airlines (NYSE:LUV) and LUV stock is the best bet for an air travel recovery. According to Forbes Aerospace & Defense contributor Will Horton, United Airlines (NASDAQ:UAL) generated $16.3 billion in international revenue in 2019, most of the four major airlines not named Southwest.
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Delta Airlines (NYSE:DAL) had $11.9 billion in international revenue in 2019 (28%), while American Airlines (NASDAQ:AAL) came in third place with $11.1 billion in international revenue (26%). Southwest Can’t Afford Another U.S. Shutdown Southwest operates exclusively in the U.S. Geographic Diversification Should the U.S. shutdown again, United CEO Scott Kirby ought to be tickled pink that he has almost 200 wide-body jets to service the global air traveler.
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5543.0
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2020-07-14 00:00:00 UTC
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Delta CEO says air travel 'at a stall' amid resurgent virus, recovery over 2 years away
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AAL
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https://www.nasdaq.com/articles/delta-ceo-says-air-travel-at-a-stall-amid-resurgent-virus-recovery-over-2-years-away-0
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nan
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By Tracy Rucinski
CHICAGO, July 14 (Reuters) - Delta Air Lines DAL.N warned on Tuesday it will be more than two years before the industry sees a sustainable recovery from the "staggering" impact of the coronavirus pandemic, with demand largely tracking the curve of infections in different places.
"We're at a stall right now," Chief Executive Ed Bastian told Reuters, saying demand that built up over June for travel to places like Las Vegas, Florida or New York had suffered due to fresh cases and quarantines, while picking up to some mountain and international destinations.
The Atlanta-based carrier has scaled back the flights it planned to add in August to 500 from 1,000.
Shares were down 1.9% pre-market.
Delta posted a $2.8 billion adjusted net loss, or $4.43 per share, for the second quarter as passenger revenue plummeted 94% during a season that some analysts call the worst in aviation history.
Delta stuck to its target to halt a daily cash burn, which hit $100 million at the start of the pandemic, though Bastian warned it hinges on demand.
"There's a lot of risk because it's hard forecasting what's going to happen with the virus," he said.
The airline slowed its daily cash burn to about $27 million in June and sees a similar rate in July, with improvements as economies open and people feel more comfortable traveling.
Delta had $15.7 billion in liquidity at the end of June. It has not decided whether to take a $4.6 billion secured loan under the CARES Act - available until Sept. 30 - as it eyes other options involving similar collateral, Bastian said.
It already received $5.4 billion to cover payroll through September under the U.S. government stimulus package.
Large U.S. airlines have warned of furloughs in October when those funds run out, but Bastian said he hoped to avoid furloughs after more than 17,000 employees opted for buyouts and thousands more for extended unpaid leaves.
Over 45,000 employees have taken varying short-term leaves.
LIMITED SEATING
Delta may continue blocking middle seats beyond September thanks to demand for comfort, but warned it cannot make money filling only 60% of its planes.
"You can't raise prices high enough, particularly when your competition isn't blocking middle seats and has a lot more supply out there," he said.
Southwest Airlines LUV.N too is limiting seating capacity through September, but rivals American Airlines AAL.O and United Airlines UAL.O have added thousands of flights with all seats for sale on hopes of picking up leisure summer demand.
Delta, the first of the U.S. airlines to report quarterly results, is more geared toward business travel, which will be slower to recover, but Bastian said its SkyMiles loyalty data showed business customers traveling for personal reasons and willing to pay a premium.
"This is something that will take two to three years for us to walk through and we'll be very disciplined as to how we walk it back up," he said.
Delta, which had been expanding aggressively through international partnerships, wrote down $1.1 billion against its recent LATAM Airlines LTM.SN investment and $770 million against Grupo AeroMexico AEROMEX.MX after their Chapter 11 filings, and booked a $200 million charge against its stake in Virgin Atlantic, which is also restructuring.
Delta flew 93% fewer passengers in the quarter, while its fuel expense was $372 million versus $2.3 billion a year ago.
(Reporting by Tracy Rucinski, additional reporting by David Shepardson; Editing by Himani Sarkar and 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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Southwest Airlines LUV.N too is limiting seating capacity through September, but rivals American Airlines AAL.O and United Airlines UAL.O have added thousands of flights with all seats for sale on hopes of picking up leisure summer demand. By Tracy Rucinski CHICAGO, July 14 (Reuters) - Delta Air Lines DAL.N warned on Tuesday it will be more than two years before the industry sees a sustainable recovery from the "staggering" impact of the coronavirus pandemic, with demand largely tracking the curve of infections in different places. "We're at a stall right now," Chief Executive Ed Bastian told Reuters, saying demand that built up over June for travel to places like Las Vegas, Florida or New York had suffered due to fresh cases and quarantines, while picking up to some mountain and international destinations.
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Southwest Airlines LUV.N too is limiting seating capacity through September, but rivals American Airlines AAL.O and United Airlines UAL.O have added thousands of flights with all seats for sale on hopes of picking up leisure summer demand. The airline slowed its daily cash burn to about $27 million in June and sees a similar rate in July, with improvements as economies open and people feel more comfortable traveling. Delta may continue blocking middle seats beyond September thanks to demand for comfort, but warned it cannot make money filling only 60% of its planes.
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Southwest Airlines LUV.N too is limiting seating capacity through September, but rivals American Airlines AAL.O and United Airlines UAL.O have added thousands of flights with all seats for sale on hopes of picking up leisure summer demand. Delta, the first of the U.S. airlines to report quarterly results, is more geared toward business travel, which will be slower to recover, but Bastian said its SkyMiles loyalty data showed business customers traveling for personal reasons and willing to pay a premium. Delta, which had been expanding aggressively through international partnerships, wrote down $1.1 billion against its recent LATAM Airlines LTM.SN investment and $770 million against Grupo AeroMexico AEROMEX.MX after their Chapter 11 filings, and booked a $200 million charge against its stake in Virgin Atlantic, which is also restructuring.
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Southwest Airlines LUV.N too is limiting seating capacity through September, but rivals American Airlines AAL.O and United Airlines UAL.O have added thousands of flights with all seats for sale on hopes of picking up leisure summer demand. Delta posted a $2.8 billion adjusted net loss, or $4.43 per share, for the second quarter as passenger revenue plummeted 94% during a season that some analysts call the worst in aviation history. Delta stuck to its target to halt a daily cash burn, which hit $100 million at the start of the pandemic, though Bastian warned it hinges on demand.
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5544.0
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2020-07-14 00:00:00 UTC
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Delta CEO says air travel 'at a stall' amid resurgent virus, recovery over 2 years away
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AAL
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https://www.nasdaq.com/articles/delta-ceo-says-air-travel-at-a-stall-amid-resurgent-virus-recovery-over-2-years-away-2020
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By Tracy Rucinski
CHICAGO, July 14 (Reuters) - Delta Air Lines DAL.N warned on Tuesday it will be more than two years before the industry sees a sustainable recovery from the "staggering" impact of the coronavirus pandemic, with demand largely tracking the curve of infections in different places.
"We're at a stall right now," CEO Ed Bastian told Reuters, saying demand that built up over June for travel to places like Las Vegas, Florida or New York had suffered due to fresh cases and quarantines, while picking up to some mountain and international destinations.
"We haven't gone backwards," he said. But "we're not growing," he added.
Atlanta-based Delta posted a $2.8 billion adjusted net loss, or $4.43 per share, for the second quarter ended June 30 as passenger revenues plummeted 94% during a season that some analysts call the worst in aviation history.
Delta stuck to its target to halt a daily cash burn, which hit $100 million at the start of the pandemic, by the end of the year, though Bastian warned it hinges on demand.
"There's a lot of risk because it's hard forecasting what's going to happen with the virus," he said.
The airline slowed its daily cash burn to about $27 million in June and sees a similar rate in July, with improvements as economies open and people feel more comfortable traveling.
Delta had $15.7 billion in liquidity at the end of June. It has not decided whether to take a $4.6 billion secured loan under the CARES Act - available until Sept. 30 - as it eyes other options involving similar collateral, Bastian said.
It already received $5.4 billion to cover payroll through September under the U.S. government stimulus package.
Large U.S. airlines have warned of furloughs in October when those funds run out, but Bastian said he hoped to avoid furloughs after more than 15,000 employees opted for buyouts and thousands more for extended unpaid leaves.
LIMITED SEATING
Delta may continue blocking middle seats beyond September thanks to demand for comfort, but warned it cannot make money filling only 60% of the plane.
"You can't raise prices high enough, particularly when your competition isn't blocking middle seats and has a lot more supply out there," he said.
Southwest Airlines LUV.N too is limiting seating capacity through September, but rivals American Airlines AAL.O and United Airlines UAL.O have added thousands of flights with all seats for sale on hopes of picking up leisure summer demand.
Delta, the first of the U.S. airlines to report quarterly results, is more geared toward business travel, which will be slower to recover, but Bastian said its SkyMiles loyalty data showed business customers traveling for personal reasons and willing to pay a premium.
"This is something that will take two to three years for us to walk through and we'll be very disciplined as to how we walk it back up," he said.
Delta, which had been expanding aggressively through international partnerships, wrote down $1.1 billion against its recent LATAM Airlines LTM.SN investment and $770 million against Grupo AeroMexico AEROMEX.MX after their Chapter 11 filings, and booked a $200 million charge against its stake in Virgin Atlantic, which is also restructuring.
Delta flew 93% fewer passengers in the quarter, while its fuel expense was $372 million versus $2.3 billion a year ago.
(Reporting by Tracy Rucinski, additional reporting by David Shepardson; Editing by Himani Sarkar)
((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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Southwest Airlines LUV.N too is limiting seating capacity through September, but rivals American Airlines AAL.O and United Airlines UAL.O have added thousands of flights with all seats for sale on hopes of picking up leisure summer demand. By Tracy Rucinski CHICAGO, July 14 (Reuters) - Delta Air Lines DAL.N warned on Tuesday it will be more than two years before the industry sees a sustainable recovery from the "staggering" impact of the coronavirus pandemic, with demand largely tracking the curve of infections in different places. "We're at a stall right now," CEO Ed Bastian told Reuters, saying demand that built up over June for travel to places like Las Vegas, Florida or New York had suffered due to fresh cases and quarantines, while picking up to some mountain and international destinations.
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Southwest Airlines LUV.N too is limiting seating capacity through September, but rivals American Airlines AAL.O and United Airlines UAL.O have added thousands of flights with all seats for sale on hopes of picking up leisure summer demand. By Tracy Rucinski CHICAGO, July 14 (Reuters) - Delta Air Lines DAL.N warned on Tuesday it will be more than two years before the industry sees a sustainable recovery from the "staggering" impact of the coronavirus pandemic, with demand largely tracking the curve of infections in different places. The airline slowed its daily cash burn to about $27 million in June and sees a similar rate in July, with improvements as economies open and people feel more comfortable traveling.
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Southwest Airlines LUV.N too is limiting seating capacity through September, but rivals American Airlines AAL.O and United Airlines UAL.O have added thousands of flights with all seats for sale on hopes of picking up leisure summer demand. Delta stuck to its target to halt a daily cash burn, which hit $100 million at the start of the pandemic, by the end of the year, though Bastian warned it hinges on demand. Delta, the first of the U.S. airlines to report quarterly results, is more geared toward business travel, which will be slower to recover, but Bastian said its SkyMiles loyalty data showed business customers traveling for personal reasons and willing to pay a premium.
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Southwest Airlines LUV.N too is limiting seating capacity through September, but rivals American Airlines AAL.O and United Airlines UAL.O have added thousands of flights with all seats for sale on hopes of picking up leisure summer demand. Atlanta-based Delta posted a $2.8 billion adjusted net loss, or $4.43 per share, for the second quarter ended June 30 as passenger revenues plummeted 94% during a season that some analysts call the worst in aviation history. Delta stuck to its target to halt a daily cash burn, which hit $100 million at the start of the pandemic, by the end of the year, though Bastian warned it hinges on demand.
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5545.0
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2020-07-14 00:00:00 UTC
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Southwest Is Waiting for the Pandemic to Be Over
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AAL
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https://www.nasdaq.com/articles/southwest-is-waiting-for-the-pandemic-to-be-over-2020-07-14
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Southwest Airlines (NYSE:LUV) stock appears to have settled into a trading range as investors wait for the pandemic to be over.
Source: Shutterstock
The company is burning between $20 million and $25 million of cash each day, with revenue down 70% to 75%. Capacity is down 40% to 50%.
Somehow investors see this as good news. The stock opened for trade July 14 at about $33, little changed from where it was three months ago.
The assumption is that the pandemic will end one day. The assumption is we’ll go back to flying one day. The assumption is that Southwest can get through that, with cash to last two years. The assumption is that on the other side of the pandemic, Southwest will be the strongest carrier.
LUV Stock Is the Best of a Bad Bunch
The assumption is that when things return to normal, Southwest stock will return to its previous level near $60, and your overall return will be sweet.
10 Micro-Cap Stocks to Buy Today for Value and Growth
Southwest says 14% of its employees have opted for voluntary leave and long-term separation. The company announced its plan to buy out employees in early June.
The assumption of strength has been in Southwest stock since the pandemic started. The shares are down 38% on the year so far, but big rivals Delta Air Lines (NYSE:DAL), United Airlines (NASDAQ:UAL) and American Airlines (NASDAQ:AAL) are all down by an average of 60%.
Since the lockdowns hit in March stock in the four main airlines have been moving in lockstep. But Southwest is riding higher. The stock’s price advantage grew with industry optimism in late May. The pack seemed to catch up in June. But since things have slid back down in July Southwest’s relative strength has grown again.
Pounding the Table
This is because analysts are pounding the table for Southwest.
Goldman Sachs (NYSE:GS) upgraded Southwest to a buy in late June. Analyst Catherine O’Brien made the typical arguments. Southwest’s flights are short and demand for them will come back before international travel. It has a strong balance sheet. She put a $47 one-year price target on the shares. Trefis has put on a price target of $44, using much the same reasoning.
The fact that so many Southwest employees took the buy-out means labor costs should look better this fall, because furloughs will hit lower-seniority employees first. Labor is the biggest cost for the airlines, and the most variable. When fuel costs are high, they can be as little as 22% of the total. When they’re low they can be as much as 30% of the total.
All this makes Southwest the most undervalued airline, despite its relative strength, according to The Value Team. Present estimates are that traffic will still be down 40% in late autumn, returning to previous levels in 2021. In this analysis the past is prologue. Southwest had the best free cash flow in the industry before the pandemic and should have it after.
The Bottom Line
The consensus among analysts is that your patience with Southwest stock will be rewarded.
Southwest is keeping middle seats open but says its revenue decline isn’t as bad as it once feared. The company is trying to goose demand for the fall with a one-way fares as low as $39.
Everything depends on the path of the pandemic, however. Right now, that path looks very grim. Personally, I can’t imagine getting on a plane until vaccines are freely available, about one year from now. Only now are people starting to realize how bad the novel coronavirus is for younger people.
If Americans get smart and knock this thing down, LUV stock will recover. So long as many of us remain stupid, that won’t happen. This makes it hard for me to invest in any U.S. carrier right now, even the strongest one. There are a lot of stupid Americans.
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 Southwest Is Waiting for the Pandemic to Be Over appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The shares are down 38% on the year so far, but big rivals Delta Air Lines (NYSE:DAL), United Airlines (NASDAQ:UAL) and American Airlines (NASDAQ:AAL) are all down by an average of 60%. 10 Micro-Cap Stocks to Buy Today for Value and Growth Southwest says 14% of its employees have opted for voluntary leave and long-term separation. Goldman Sachs (NYSE:GS) upgraded Southwest to a buy in late June.
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The shares are down 38% on the year so far, but big rivals Delta Air Lines (NYSE:DAL), United Airlines (NASDAQ:UAL) and American Airlines (NASDAQ:AAL) are all down by an average of 60%. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Southwest Airlines (NYSE:LUV) stock appears to have settled into a trading range as investors wait for the pandemic to be over. LUV Stock Is the Best of a Bad Bunch The assumption is that when things return to normal, Southwest stock will return to its previous level near $60, and your overall return will be sweet.
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The shares are down 38% on the year so far, but big rivals Delta Air Lines (NYSE:DAL), United Airlines (NASDAQ:UAL) and American Airlines (NASDAQ:AAL) are all down by an average of 60%. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Southwest Airlines (NYSE:LUV) stock appears to have settled into a trading range as investors wait for the pandemic to be over. LUV Stock Is the Best of a Bad Bunch The assumption is that when things return to normal, Southwest stock will return to its previous level near $60, and your overall return will be sweet.
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The shares are down 38% on the year so far, but big rivals Delta Air Lines (NYSE:DAL), United Airlines (NASDAQ:UAL) and American Airlines (NASDAQ:AAL) are all down by an average of 60%. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Southwest Airlines (NYSE:LUV) stock appears to have settled into a trading range as investors wait for the pandemic to be over. The assumption is that Southwest can get through that, with cash to last two years.
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5546.0
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2020-07-13 00:00:00 UTC
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Monday's ETF with Unusual Volume: OMFL
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https://www.nasdaq.com/articles/mondays-etf-with-unusual-volume%3A-omfl-2020-07-13
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The Invesco Russell 1000—Dynamic Multifactor ETF is seeing unusually high volume in afternoon trading Monday, with over 2.2 million shares traded versus three month average volume of about 137,000. Shares of OMFL were up about 0.3% on the day.
Components of that ETF with the highest volume on Monday were American Airlines Group, trading down about 2.9% with over 30.1 million shares changing hands so far this session, and United Airlines Holdings, off about 3.4% on volume of over 26.9 million shares. Herbalife Nutrition is the component faring the best Monday, up by about 14.8% on the day, while Gap is lagging other components of the Invesco Russell 1000—Dynamic Multifactor ETF, trading lower by about 4.6%.
VIDEO: Monday's ETF with Unusual Volume: OMFL
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 Invesco Russell 1000—Dynamic Multifactor ETF is seeing unusually high volume in afternoon trading Monday, with over 2.2 million shares traded versus three month average volume of about 137,000. Components of that ETF with the highest volume on Monday were American Airlines Group, trading down about 2.9% with over 30.1 million shares changing hands so far this session, and United Airlines Holdings, off about 3.4% on volume of over 26.9 million shares. VIDEO: Monday's ETF with Unusual Volume: OMFL 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 Invesco Russell 1000—Dynamic Multifactor ETF is seeing unusually high volume in afternoon trading Monday, with over 2.2 million shares traded versus three month average volume of about 137,000. Herbalife Nutrition is the component faring the best Monday, up by about 14.8% on the day, while Gap is lagging other components of the Invesco Russell 1000—Dynamic Multifactor ETF, trading lower by about 4.6%. VIDEO: Monday's ETF with Unusual Volume: OMFL 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 Invesco Russell 1000—Dynamic Multifactor ETF is seeing unusually high volume in afternoon trading Monday, with over 2.2 million shares traded versus three month average volume of about 137,000. Components of that ETF with the highest volume on Monday were American Airlines Group, trading down about 2.9% with over 30.1 million shares changing hands so far this session, and United Airlines Holdings, off about 3.4% on volume of over 26.9 million shares. Herbalife Nutrition is the component faring the best Monday, up by about 14.8% on the day, while Gap is lagging other components of the Invesco Russell 1000—Dynamic Multifactor ETF, trading lower by about 4.6%.
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The Invesco Russell 1000—Dynamic Multifactor ETF is seeing unusually high volume in afternoon trading Monday, with over 2.2 million shares traded versus three month average volume of about 137,000. Herbalife Nutrition is the component faring the best Monday, up by about 14.8% on the day, while Gap is lagging other components of the Invesco Russell 1000—Dynamic Multifactor ETF, trading lower by about 4.6%. VIDEO: Monday's ETF with Unusual Volume: OMFL 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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5547.0
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2020-07-13 00:00:00 UTC
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Delta Air Lines Earnings Will Be About the Story, Not the Numbers
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AAL
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https://www.nasdaq.com/articles/delta-air-lines-earnings-will-be-about-the-story-not-the-numbers-2020-07-13
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Second quarter earnings from Delta Air Lines (NYSE:DAL) are going to be ugly. There’s no two ways about it. But the good news for DAL stock is that soft numbers are not going to surprise anyone. Unfortunately, that’s also the bad news.
DAL) logo" width="300" height="169">
Source: Lerner Vadim / Shutterstock.com
Delta’s stock is stumbling into earnings, having lost over a quarter of its value in the last five weeks. The selling pressure for the most part is coming from external factors, particularly a surging number of novel coronavirus cases in the U.S. It would be a potential help to the stock if Delta could somehow outperform expectations.
That’s not going to be happen. To be sure, Delta’s numbers could come in ahead of Wall Street consensus. But that consensus suggests an unprecedented 89% decline in revenue year-over-year, and a net loss over $4 per share.
“Beating” the Street simply means the quarter wasn’t quite as horrible as thought. Given the external environment, that’s probably not enough to drive DAL stock up all that much, let alone toward last month’s highs.
And so the only thing that is going to move the stock in trading Tuesday is management. Specifically, Delta needs to convince investors that it’s going to be able to manage the worst of the current crisis, while also establishing hopes for success once some semblance of normalcy returns.
It seems like a big ask, and as a result I’d expect trading in DAL to be rather muted on Tuesday. But if the stock is going to find a bottom, it’s the company’s management that will need to do the heavy lifting.
The Concerns Facing Delta
There are two core concerns when it comes to shares of Delta and other airlines. The first is the amount of money being lost in 2020, and the extent to which U.S. airlines can manage those losses. The second is what the industry looks like once some semblance of normalcy returns.
7 Big 5G Stocks to Buy for the Hyperconnected Future
The losses this year will be significant. Wall Street expects Delta to report a loss of over $4 billion this year. Cash burn may be even more significant, given Delta’s response. The company raised $5.4 billion in new capital in the first quarter and drew down another $3 billion on its revolving credit facility. Last week, Delta signed a letter of intent for more loans from the federal government under the CARES Act.
Those moves at least take a near-term bankruptcy off the table, a key reason why DAL stock has rallied off May lows. But they don’t answer the longer-term questions.
After all, the recent moves suggest that Delta is not going to be nearly as profitable going forward, even in a more normalized environment. Capacity has been cut by as much as 70%. Interest expense on the added debt will be significant.
And as I noted in expressing some caution toward the U.S. Global Jets ETF (NYSEARCA:JETS), this is a business with enormous operating leverage. Incremental passengers drive a huge amount of profit. That’s part of why Delta’s earnings have swung so dramatically in recent quarters.
It’s true that Delta stock is much cheaper. So are the likes of United Airlines (NASDAQ:UAL) and American Airlines (NASDAQ:AAL). But considering near-term losses, higher debt and lower profits for several years, the declines in the sector make some sense.
How Management Can Rescue DAL Stock
The myriad challenges here are why I’m skeptical toward the sector. And it’s why I don’t expect much from Tuesday’s earnings report.
Simply put, there’s just not all that much Delta can say. We know it’s going to be a long hard slog for the industry. Delta’s own chief executive officer said in April that it would take “two to three years” for the industry to recover.
That may be optimistic. The recovery following the attacks of Sept. 11 took longer, and Delta actually didn’t make it: the company filed for bankruptcy in 2005. (That’s one reason why my pick in the sector, if forced to choose, would be Southwest Airlines (NYSE:LUV). Southwest remains the only major carrier to have avoided bankruptcy.)
Still, it’s possible management can do something on Tuesday to change investor minds. A coherent, detailed plan for the recovery would help. Detailed discussion around capacity and the labor force might also drive optimism. It’s possible that news of any kind might calm investors, who would prefer some sort of outlook to the uncertainty of the moment.
Again, I’m skeptical. But if I’m wrong, it’s going to be because management was able to change the story — not because the actual numbers are any kind of surprise.
Vince Martin has covered the financial industry for close to a decade for InvestorPlace.com and other outlets. He has no positions in any securities mentioned.
The post Delta Air Lines Earnings Will Be About the Story, Not the Numbers 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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So are the likes of United Airlines (NASDAQ:UAL) and American Airlines (NASDAQ:AAL). DAL) logo" width="300" height="169"> Source: Lerner Vadim / Shutterstock.com Delta’s stock is stumbling into earnings, having lost over a quarter of its value in the last five weeks. Specifically, Delta needs to convince investors that it’s going to be able to manage the worst of the current crisis, while also establishing hopes for success once some semblance of normalcy returns.
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So are the likes of United Airlines (NASDAQ:UAL) and American Airlines (NASDAQ:AAL). InvestorPlace - Stock Market News, Stock Advice & Trading Tips Second quarter earnings from Delta Air Lines (NYSE:DAL) are going to be ugly. Wall Street expects Delta to report a loss of over $4 billion this year.
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So are the likes of United Airlines (NASDAQ:UAL) and American Airlines (NASDAQ:AAL). InvestorPlace - Stock Market News, Stock Advice & Trading Tips Second quarter earnings from Delta Air Lines (NYSE:DAL) are going to be ugly. DAL) logo" width="300" height="169"> Source: Lerner Vadim / Shutterstock.com Delta’s stock is stumbling into earnings, having lost over a quarter of its value in the last five weeks.
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So are the likes of United Airlines (NASDAQ:UAL) and American Airlines (NASDAQ:AAL). InvestorPlace - Stock Market News, Stock Advice & Trading Tips Second quarter earnings from Delta Air Lines (NYSE:DAL) are going to be ugly. Wall Street expects Delta to report a loss of over $4 billion this year.
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5548.0
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2020-07-13 00:00:00 UTC
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Southwest Airlines warns it may cut jobs without jump in travel
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AAL
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https://www.nasdaq.com/articles/southwest-airlines-warns-it-may-cut-jobs-without-jump-in-travel-2020-07-13
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By Tracy Rucinski and David Shepardson
CHICAGO/WASHINGTON July 13 (Reuters) - Southwest Airlines LUV.N Chief Executive Gary Kelly told employees on Monday it needs a dramatic jump in passenger demand or it will be forced to take new steps to reduce staffing.
Employees face a Wednesday deadline whether to participate in a voluntary incentive program to leave the airline.
"Although furloughs and layoffs remain our very last resort, we can’t rule them out as a possibility obviously in this very bad environment," Kelly said in a message to employees. "We need a significant recovery by the end of this year — and that’s roughly triple the number of passengers from where we are today."
Kelly added that the "recent rise in COVID cases and increasing regional restrictions on businesses and states requiring quarantine aren’t positive developments for our business, and we are concerned about the impact on already weak travel demand."
Airlines are grappling with overstaffing as they decide whether to further limit passengers on flights.
JetBlue Airways Corp JBLU.O said Monday it will extend blocking middle seats on larger airplanes and aisle seats on smaller aircraft for flights through Sept. 8 in response to COVID-19. Other airlines, like American Airlines AAL.O are again booking flights to capacity.
Last week, United Airlines UAL.O said it was preparing to send notices of potential furloughs to 36,000 U.S.-based frontline employees, or about 45% of staff, as travel demand hit by the coronavirus pandemic struggles to recover.
Not everyone who receives a notification will be furloughed, United said. Furloughs would begin Oct. 1, when a government-imposed ban on forced job cuts by airlines that accepted billions of dollars in federal assistance expires.
Delta Air Lines DAL.N, which is blocking middle seats through at least Sept. 30, told employees Thursday it plans to get "smaller as we look ahead to the recovery, which is likely to be lengthy and slow."
(Reporting by Tracy Rucinski and David Shepardson Editing by Chizu Nomiyama and Nick Zieminski)
((David.Shepardson@thomsonreuters.com; 2028988324;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Other airlines, like American Airlines AAL.O are again booking flights to capacity. By Tracy Rucinski and David Shepardson CHICAGO/WASHINGTON July 13 (Reuters) - Southwest Airlines LUV.N Chief Executive Gary Kelly told employees on Monday it needs a dramatic jump in passenger demand or it will be forced to take new steps to reduce staffing. Last week, United Airlines UAL.O said it was preparing to send notices of potential furloughs to 36,000 U.S.-based frontline employees, or about 45% of staff, as travel demand hit by the coronavirus pandemic struggles to recover.
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Other airlines, like American Airlines AAL.O are again booking flights to capacity. By Tracy Rucinski and David Shepardson CHICAGO/WASHINGTON July 13 (Reuters) - Southwest Airlines LUV.N Chief Executive Gary Kelly told employees on Monday it needs a dramatic jump in passenger demand or it will be forced to take new steps to reduce staffing. Delta Air Lines DAL.N, which is blocking middle seats through at least Sept. 30, told employees Thursday it plans to get "smaller as we look ahead to the recovery, which is likely to be lengthy and slow."
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Other airlines, like American Airlines AAL.O are again booking flights to capacity. By Tracy Rucinski and David Shepardson CHICAGO/WASHINGTON July 13 (Reuters) - Southwest Airlines LUV.N Chief Executive Gary Kelly told employees on Monday it needs a dramatic jump in passenger demand or it will be forced to take new steps to reduce staffing. Last week, United Airlines UAL.O said it was preparing to send notices of potential furloughs to 36,000 U.S.-based frontline employees, or about 45% of staff, as travel demand hit by the coronavirus pandemic struggles to recover.
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Other airlines, like American Airlines AAL.O are again booking flights to capacity. By Tracy Rucinski and David Shepardson CHICAGO/WASHINGTON July 13 (Reuters) - Southwest Airlines LUV.N Chief Executive Gary Kelly told employees on Monday it needs a dramatic jump in passenger demand or it will be forced to take new steps to reduce staffing. Employees face a Wednesday deadline whether to participate in a voluntary incentive program to leave the airline.
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5549.0
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2020-07-13 00:00:00 UTC
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American Airlines preparing to send furlough warnings this week -sources
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AAL
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https://www.nasdaq.com/articles/american-airlines-preparing-to-send-furlough-warnings-this-week-sources-2020-07-13
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nan
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nan
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CHICAGO, July 13 (Reuters) - American Airlines AAL.O is preparing to send notices of potential furloughs, as well as early retirement packages to encourage voluntary departures, to its workers later this week, two people familiar with the matter said.
American has already said it expects to have 20,000 more employees than it needs to operate its schedule in the fall as demand that has been hit by the coronavirus pandemic remains depressed.
(Reporting by Tracy Rucinski Editing by Chris Reese)
((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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CHICAGO, July 13 (Reuters) - American Airlines AAL.O is preparing to send notices of potential furloughs, as well as early retirement packages to encourage voluntary departures, to its workers later this week, two people familiar with the matter said. American has already said it expects to have 20,000 more employees than it needs to operate its schedule in the fall as demand that has been hit by the coronavirus pandemic remains depressed. (Reporting by Tracy Rucinski Editing by Chris Reese) ((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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CHICAGO, July 13 (Reuters) - American Airlines AAL.O is preparing to send notices of potential furloughs, as well as early retirement packages to encourage voluntary departures, to its workers later this week, two people familiar with the matter said. American has already said it expects to have 20,000 more employees than it needs to operate its schedule in the fall as demand that has been hit by the coronavirus pandemic remains depressed. (Reporting by Tracy Rucinski Editing by Chris Reese) ((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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CHICAGO, July 13 (Reuters) - American Airlines AAL.O is preparing to send notices of potential furloughs, as well as early retirement packages to encourage voluntary departures, to its workers later this week, two people familiar with the matter said. American has already said it expects to have 20,000 more employees than it needs to operate its schedule in the fall as demand that has been hit by the coronavirus pandemic remains depressed. (Reporting by Tracy Rucinski Editing by Chris Reese) ((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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CHICAGO, July 13 (Reuters) - American Airlines AAL.O is preparing to send notices of potential furloughs, as well as early retirement packages to encourage voluntary departures, to its workers later this week, two people familiar with the matter said. American has already said it expects to have 20,000 more employees than it needs to operate its schedule in the fall as demand that has been hit by the coronavirus pandemic remains depressed. (Reporting by Tracy Rucinski Editing by Chris Reese) ((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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5550.0
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2020-07-12 00:00:00 UTC
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Touchless: How the world's busiest airport envisions post-COVID travel
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AAL
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https://www.nasdaq.com/articles/touchless%3A-how-the-worlds-busiest-airport-envisions-post-covid-travel-2020-07-12
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nan
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nan
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By Tracy Rucinski
CHICAGO, July 12 (Reuters) - With COVID-19 ravaging the aviation industry, airlines and airports worldwide are reining in costs and halting new spending, except in one area: reassuring pandemic-wary passengers about travel.
"Whatever the new normal (...) it's going to be more and more around self-service," Sean Donohue, chief executive of Dallas-Forth Worth International Airport (DFW), told Reuters in an interview.
The airport is working with American Airlines AAL.O - whose home base is DFW - to roll out a self-check-in for luggage, and all of its restrooms will be entirely touchless by the end of July with technology developed by Infax Inc. They will have hands-free sinks, soap, flushing toilets, and paper towel dispensers, which will be equipped with sensors to alert workers when supplies are low.
"One of the biggest complaints airports receive are restrooms," Donohue said.
Dallas is piloting three technology options for luggage check-ins: Amadeus's ICM, SITA, and Materna IPS.
DFW has become the world's busiest airport, according to figures from travel analytics firm Cirium, thanks in part to a strategy by large global carrier American to concentrate much of its pandemic flying through its Texas hub.
Last year DFW rolled out biometric boarding -- where your face is your boarding pass -- for international flights and is taking advantage of the lull in international traffic to work with U.S. Customs and Border Protection to use the VeriScan technology for arriving passengers too, he said.
Delta Air Lines DAL.N opened the first U.S. biometric terminal in Atlanta in 2018, and some airports in Europe and Asia also use facial recognition technology. It has spurred some concerns, however, with a U.S. government study finding racial bias in the technology and the European Union earlier this year considered banning it in public places over privacy concerns.
The Dallas airport is also testing new technology around better sanitization, beginning with ultraviolet technology that can kill germs before they circulate into the HVAC system.
But it has also deployed electrostatic foggers and hired a "hit team" of 150 people who are going through the terminals physically sanitizing high-touch areas.
"Technology is critical because it can be very efficient," Donohue said, but customers "being able to visualize what's happening is reassuring as well."
DFW has invested millions of dollars above its cleaning and sanitation budget since the pandemic broke out, while suspending about $100 million of capital programs and reducing its second-half operating costs by about 20% as it addresses COVID-19's steep hit to the industry, which only months ago was preparing for growth.
Nearly 114,000 customers went through DFW on July 11, an improvement from a 10,000 per day trough in April, but still just about half of last year's volumes.
The airport has also been testing touchless technology for employee temperature checks, but is not currently planning hotly-debated checks for passengers, barring a federal mandate for which there has yet to be any inclination by the U.S. government.
Michael Davies, who runs the New Technology Ventures program at London Business School, said technology will be one of many changes to the airport experience going forward, with fewer overall travelers who will be seeking more space and spending less time dining and shopping.
"You put these things together and this feels in some interesting ways very much like back to the golden age of air travel," said Davies.
(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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The airport is working with American Airlines AAL.O - whose home base is DFW - to roll out a self-check-in for luggage, and all of its restrooms will be entirely touchless by the end of July with technology developed by Infax Inc. By Tracy Rucinski CHICAGO, July 12 (Reuters) - With COVID-19 ravaging the aviation industry, airlines and airports worldwide are reining in costs and halting new spending, except in one area: reassuring pandemic-wary passengers about travel. DFW has become the world's busiest airport, according to figures from travel analytics firm Cirium, thanks in part to a strategy by large global carrier American to concentrate much of its pandemic flying through its Texas hub.
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The airport is working with American Airlines AAL.O - whose home base is DFW - to roll out a self-check-in for luggage, and all of its restrooms will be entirely touchless by the end of July with technology developed by Infax Inc. By Tracy Rucinski CHICAGO, July 12 (Reuters) - With COVID-19 ravaging the aviation industry, airlines and airports worldwide are reining in costs and halting new spending, except in one area: reassuring pandemic-wary passengers about travel. "Whatever the new normal (...) it's going to be more and more around self-service," Sean Donohue, chief executive of Dallas-Forth Worth International Airport (DFW), told Reuters in an interview.
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The airport is working with American Airlines AAL.O - whose home base is DFW - to roll out a self-check-in for luggage, and all of its restrooms will be entirely touchless by the end of July with technology developed by Infax Inc. Last year DFW rolled out biometric boarding -- where your face is your boarding pass -- for international flights and is taking advantage of the lull in international traffic to work with U.S. Customs and Border Protection to use the VeriScan technology for arriving passengers too, he said. Michael Davies, who runs the New Technology Ventures program at London Business School, said technology will be one of many changes to the airport experience going forward, with fewer overall travelers who will be seeking more space and spending less time dining and shopping.
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The airport is working with American Airlines AAL.O - whose home base is DFW - to roll out a self-check-in for luggage, and all of its restrooms will be entirely touchless by the end of July with technology developed by Infax Inc. By Tracy Rucinski CHICAGO, July 12 (Reuters) - With COVID-19 ravaging the aviation industry, airlines and airports worldwide are reining in costs and halting new spending, except in one area: reassuring pandemic-wary passengers about travel. "Whatever the new normal (...) it's going to be more and more around self-service," Sean Donohue, chief executive of Dallas-Forth Worth International Airport (DFW), told Reuters in an interview.
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5551.0
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2020-07-10 00:00:00 UTC
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American Airlines threatens to cancel some Boeing 737 MAX orders - WSJ
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AAL
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https://www.nasdaq.com/articles/american-airlines-threatens-to-cancel-some-boeing-737-max-orders-wsj-2020-07-10
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nan
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nan
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Adds details on American's 737 MAX orders
July 10 (Reuters) - American Airlines Group Inc AAL.O has threatened to cancel some of its orders for Boeing Co's BA.N grounded 737 MAX jets unless the planemaker helps secure funding for them, the Wall Street Journal reported on Friday.
American Airlines has struggled to secure financing for 17 jets it had expected Boeing to deliver this year due to the coronavirus crisis, the report said, citing people familiar with the matter. (https://on.wsj.com/2ZUtQed)
Boeing has been working to help line up financing for American's 737 MAX jets, and under one possible scenario, the planemaker's financing arm could purchase the aircraft and lease them to American, eventually selling the planes and the payment stream to leasing companies, according to the report.
American currently has a total of 76 737 MAXs on order. The company declined to comment on the report.
(Reporting by Ankit Ajmera in Bengaluru; Editing by Ramakrishnan M.)
((ankit.ajmera@thomsonreuters.com; within U.S. +1 646 223 8780, outside U.S. +91 80 6182 2596;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Adds details on American's 737 MAX orders July 10 (Reuters) - American Airlines Group Inc AAL.O has threatened to cancel some of its orders for Boeing Co's BA.N grounded 737 MAX jets unless the planemaker helps secure funding for them, the Wall Street Journal reported on Friday. American Airlines has struggled to secure financing for 17 jets it had expected Boeing to deliver this year due to the coronavirus crisis, the report said, citing people familiar with the matter. (https://on.wsj.com/2ZUtQed) Boeing has been working to help line up financing for American's 737 MAX jets, and under one possible scenario, the planemaker's financing arm could purchase the aircraft and lease them to American, eventually selling the planes and the payment stream to leasing companies, according to the report.
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Adds details on American's 737 MAX orders July 10 (Reuters) - American Airlines Group Inc AAL.O has threatened to cancel some of its orders for Boeing Co's BA.N grounded 737 MAX jets unless the planemaker helps secure funding for them, the Wall Street Journal reported on Friday. American Airlines has struggled to secure financing for 17 jets it had expected Boeing to deliver this year due to the coronavirus crisis, the report said, citing people familiar with the matter. (https://on.wsj.com/2ZUtQed) Boeing has been working to help line up financing for American's 737 MAX jets, and under one possible scenario, the planemaker's financing arm could purchase the aircraft and lease them to American, eventually selling the planes and the payment stream to leasing companies, according to the report.
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Adds details on American's 737 MAX orders July 10 (Reuters) - American Airlines Group Inc AAL.O has threatened to cancel some of its orders for Boeing Co's BA.N grounded 737 MAX jets unless the planemaker helps secure funding for them, the Wall Street Journal reported on Friday. American Airlines has struggled to secure financing for 17 jets it had expected Boeing to deliver this year due to the coronavirus crisis, the report said, citing people familiar with the matter. (https://on.wsj.com/2ZUtQed) Boeing has been working to help line up financing for American's 737 MAX jets, and under one possible scenario, the planemaker's financing arm could purchase the aircraft and lease them to American, eventually selling the planes and the payment stream to leasing companies, according to the report.
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Adds details on American's 737 MAX orders July 10 (Reuters) - American Airlines Group Inc AAL.O has threatened to cancel some of its orders for Boeing Co's BA.N grounded 737 MAX jets unless the planemaker helps secure funding for them, the Wall Street Journal reported on Friday. American Airlines has struggled to secure financing for 17 jets it had expected Boeing to deliver this year due to the coronavirus crisis, the report said, citing people familiar with the matter. (https://on.wsj.com/2ZUtQed) Boeing has been working to help line up financing for American's 737 MAX jets, and under one possible scenario, the planemaker's financing arm could purchase the aircraft and lease them to American, eventually selling the planes and the payment stream to leasing companies, according to the report.
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5552.0
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2020-07-10 00:00:00 UTC
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That's Odd: Bearish AAL Analysts See 17.08% Upside
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AAL
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https://www.nasdaq.com/articles/thats-odd%3A-bearish-aal-analysts-see-17.08-upside-2020-07-10
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nan
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nan
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Analyst ratings can sometimes be complicated, and we here at ETF Channel have noticed a bit of a paradox with American Airlines Group Inc (Symbol: AAL). The average 12-month price target for AAL — averaging the work of 11 analysts — reveals an average price target of $13.09/share. That's a whopping 17.08% above where AAL has been trading recently at $11.18/share. With this kind of capital gain potential (should AAL reach that price target), one might expect to see a high concentration of "buy" or even "strong buy" ratings on the stock. Yet, take a look at the bearishness:
RECENT AAL ANALYST RATINGS BREAKDOWN
» Current 1 Month Ago 2 Month Ago 3 Month Ago
Strong buy ratings: 3 2 2 2
Buy ratings: 0 0 0 0
Hold ratings: 3 3 4 4
Sell ratings: 1 1 1 1
Strong sell ratings: 6 6 5 4
Average rating: 3.54 3.75 3.58 3.45
The average rating presented in the last row of the table above is from 1 to 5, where 1 would be a consensus Strong Buy and 5 would be a consensus Strong Sell. In the middle, 3 would be a Hold. So anything above 3 leans toward Sell as the average analyst sentiment. The average rating of 3.54 for AAL leans towards Sell, yet the AAL price target paints a different picture. Clearly, there is something more to the story here that is worth investigating for investors looking at American Airlines Group Inc. Of course, the average price target is just that — a mathematical average, and is only one metric. 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 $7.476.
But the whole reason to look at the average 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 — much like with guessing the number of jelly beans in a jar, where the average guess tends to be very close. And so with AAL trading so far below that average target price of $13.09/share, the 17.08% upside to that average target does seem to be a paradox against the bearish analyst ratings. Might analysts be behind the curve with their targets and downward adjustments are forthcoming? Or, is it time for some of these analysts to turn bullish and upgrade? One thing is for sure: this apparent paradox makes for a good "signal" to investors in AAL to spend fresh time assessing the company and deciding whether analysts have it right with their sentiment, or have it right with their price target for American Airlines Group Inc. 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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Analyst ratings can sometimes be complicated, and we here at ETF Channel have noticed a bit of a paradox with American Airlines Group Inc (Symbol: AAL). One thing is for sure: this apparent paradox makes for a good "signal" to investors in AAL to spend fresh time assessing the company and deciding whether analysts have it right with their sentiment, or have it right with their price target for American Airlines Group Inc. The average 12-month price target for AAL — averaging the work of 11 analysts — reveals an average price target of $13.09/share.
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The average 12-month price target for AAL — averaging the work of 11 analysts — reveals an average price target of $13.09/share. The average rating of 3.54 for AAL leans towards Sell, yet the AAL price target paints a different picture. Analyst ratings can sometimes be complicated, and we here at ETF Channel have noticed a bit of a paradox with American Airlines Group Inc (Symbol: AAL).
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The average 12-month price target for AAL — averaging the work of 11 analysts — reveals an average price target of $13.09/share. And so with AAL trading so far below that average target price of $13.09/share, the 17.08% upside to that average target does seem to be a paradox against the bearish analyst ratings. Analyst ratings can sometimes be complicated, and we here at ETF Channel have noticed a bit of a paradox with American Airlines Group Inc (Symbol: AAL).
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The average rating of 3.54 for AAL leans towards Sell, yet the AAL price target paints a different picture. And so with AAL trading so far below that average target price of $13.09/share, the 17.08% upside to that average target does seem to be a paradox against the bearish analyst ratings. One thing is for sure: this apparent paradox makes for a good "signal" to investors in AAL to spend fresh time assessing the company and deciding whether analysts have it right with their sentiment, or have it right with their price target for American Airlines Group Inc.
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5553.0
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2020-07-10 00:00:00 UTC
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American Airlines threatens to cancel some orders for Boeing 737 MAX jets - WSJ
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AAL
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https://www.nasdaq.com/articles/american-airlines-threatens-to-cancel-some-orders-for-boeing-737-max-jets-wsj-2020-07-10
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nan
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nan
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July 10 (Reuters) - American Airlines Group Inc AAL.O has threatened to cancel some of its orders for Boeing Co's BA.N grounded 737 MAX jets, amid the coronavirus crisis, the Wall Street Journal reported on Friday citing people familiar with the matter.
American Airlines has struggled to secure financing for 17 jets it had expected Boeing to deliver this year, the report said. (https://on.wsj.com/2ZUtQed)
The company declined to comment on the report.
(Reporting by Ankit Ajmera in Bengaluru; Editing by Ramakrishnan M.)
((ankit.ajmera@thomsonreuters.com; within U.S. +1 646 223 8780, outside U.S. +91 80 6182 2596;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
July 10 (Reuters) - American Airlines Group Inc AAL.O has threatened to cancel some of its orders for Boeing Co's BA.N grounded 737 MAX jets, amid the coronavirus crisis, the Wall Street Journal reported on Friday citing people familiar with the matter. American Airlines has struggled to secure financing for 17 jets it had expected Boeing to deliver this year, the report said. (Reporting by Ankit Ajmera in Bengaluru; Editing by Ramakrishnan M.) ((ankit.ajmera@thomsonreuters.com; within U.S. +1 646 223 8780, outside U.S. +91 80 6182 2596;)) 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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July 10 (Reuters) - American Airlines Group Inc AAL.O has threatened to cancel some of its orders for Boeing Co's BA.N grounded 737 MAX jets, amid the coronavirus crisis, the Wall Street Journal reported on Friday citing people familiar with the matter. American Airlines has struggled to secure financing for 17 jets it had expected Boeing to deliver this year, the report said. (Reporting by Ankit Ajmera in Bengaluru; Editing by Ramakrishnan M.) ((ankit.ajmera@thomsonreuters.com; within U.S. +1 646 223 8780, outside U.S. +91 80 6182 2596;)) 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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July 10 (Reuters) - American Airlines Group Inc AAL.O has threatened to cancel some of its orders for Boeing Co's BA.N grounded 737 MAX jets, amid the coronavirus crisis, the Wall Street Journal reported on Friday citing people familiar with the matter. American Airlines has struggled to secure financing for 17 jets it had expected Boeing to deliver this year, the report said. (Reporting by Ankit Ajmera in Bengaluru; Editing by Ramakrishnan M.) ((ankit.ajmera@thomsonreuters.com; within U.S. +1 646 223 8780, outside U.S. +91 80 6182 2596;)) 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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July 10 (Reuters) - American Airlines Group Inc AAL.O has threatened to cancel some of its orders for Boeing Co's BA.N grounded 737 MAX jets, amid the coronavirus crisis, the Wall Street Journal reported on Friday citing people familiar with the matter. American Airlines has struggled to secure financing for 17 jets it had expected Boeing to deliver this year, the report said. (https://on.wsj.com/2ZUtQed) The company declined to comment on the report.
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5554.0
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2020-07-10 00:00:00 UTC
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BUZZ-U.S. STOCKS ON THE MOVE-Banks, Netflix, Beyond Meat, American Airlines
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AAL
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https://www.nasdaq.com/articles/buzz-u.s.-stocks-on-the-move-banks-netflix-beyond-meat-american-airlines-2020-07-10
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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 Dow rose in choppy trading on Friday, boosted by financial stocks but the sentiment was fragile as a record rise in coronavirus cases in the United States threatened to further damage Corporate America. .N
At 12:27 ET, the Dow Jones Industrial Average .DJI was up 0.63% at 25,868.19. The S&P 500 .SPX was up 0.52% at 3,168.46 and the Nasdaq Composite .IXIC was up 0.04% at 10,552.274. The top three S&P 500 .PG.INX percentage gainers: ** Carnival Corp , up 8.8% ** Royal Caribbean Cruises Ltd , up 7.1% ** United Airlines Holdings Inc , up 5.7% The top three S&P 500 .PL.INX percentage losers: ** Synopsys , down 3.1% ** PayPal Holdings Inc , down 2.9% ** Regeneron Pharmaceuticals Inc , down 2.8% The top three NYSE .PG.N percentage gainers: ** Matson Inc , up 37.4% ** Everi Holdings , up 21.9% ** Ambow Education Holding Ltd , up 18.9% The top two NYSE .PL.N percentage losers: ** Haverty Furniture Companies Inc , down 13.3% ** Mogu Inc , down 8.7% The top two Nasdaq .PG.O percentage gainers: ** Nkarta Inc , up 191.3% ** WiMi Hologram Cloud Inc , up 94.5% The top three Nasdaq .PL.O percentage losers: ** Centogene BV , down 21.7% ** Golden Bull Ltd , down 15.6% ** Patriot National Bancorp Inc , down 15.5% ** JPMorgan Chase & Co JPM.N: up 3.1% ** Citigroup C.N: up 2.9% ** Wells Fargo WFC.N: up 3.1%
BUZZ-Big banks rise ahead of quarterly results next week ** WD-40 Co WDFC.O: down 5.4% BUZZ-Falls on downbeat Q3 results ** Greenbrier GBX.N: up 14.4% BUZZ-Rises after Q3 results beat estimates ** Express Inc EXPR.N: up 4.7% BUZZ-Reopens almost all stores, comparable sales improve ** Beyond Meat BYND.O: down 4.5% BUZZ-Citi says hard to look past headwinds, starts with 'sell' ** Walgreens WBA.O: up 1.8% BUZZ-Street View: Benefits of Walgreens' restructuring efforts remain doubtful ** Matson Inc MATX.N: up 37.4% BUZZ-Jumps on upbeat Q2 prelim results ** Netflix NFLX.O: up 5.8% BUZZ-Rises after report says GS hikes PT on content growth ** Hermitage Offshore Services PSV.N: up 285.2% BUZZ-Surges on agreements with lenders ** Amneal Pharma AMRX.N: up 7.1% BUZZ-Rises on FDA approval of generic schizophrenia drug ** Fastly FSLY.N: down 3.9%
BUZZ-BofA double downgrades to 'underperform' on high valuations ** Gilead GILD.O: up 2.0%
BUZZ-Rises on promising additional remdesivir data ** Unum Therapeutics UMRX.O: up 12.6%
BUZZ-Jumps on disclosure of Fairmount 20% stake ** Eldorado Gold EGO.N: up 3.3%
BUZZ-Gains as co expects higher Q2 production ** Anixa Biosciences Inc ANIX.O: up 9.1%
BUZZ-Rises on possible European patent for cancer treatment tech ** Raytheon Technologies Corp RTX.N: up 1.8%
BUZZ-Up after Vertical Research upgrades to 'buy' ** Oragenics OGEN.A: up 22.7%
BUZZ-Rises as co starts animal testing of COVID-19 vaccine ** Houlihan Lokey HLI.N: down 2.2%
BUZZ-Falls as JPM cuts to "neutral", citing poor M&A environment ** Everi Holdings Inc EVRI.N: up 21.9%
BUZZ-Gaming fintech Everi rallies after Roth Capital starts with "buy" ** American Airlines Group Inc AAL.O: up 5.4%
BUZZ-Rises after report says airline threatens to cancel some MAX orders ** Carnival Corp CCL.N: up 8.8%
BUZZ-Jumps on plans of phased return
The 11 major S&P 500 sectors:
Communication Services
.SPLRCL
up 0.62%
Consumer Discretionary
.SPLRCD
up 0.28%
Consumer Staples
.SPLRCS
up 1.11%
Energy
.SPNY
up 1.89%
Financial
.SPSY
up 1.77%
Health
.SPXHC
down 0.61%
Industrial
.SPLRCI
up 0.69%
Information Technology
.SPLRCT
down 0.59%
Materials
.SPLRCM
up 1.17%
Real Estate
.SPLRCR
down 0.19%
Utilities
.SPLRCU
up 1.54%
(Compiled by Bharath Manjesh in Bengaluru)
((Bharath.ManjeshR@thomsonreuters.com; outside U.S. +91 80 6749 2703;))
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: ** Carnival Corp , up 8.8% ** Royal Caribbean Cruises Ltd , up 7.1% ** United Airlines Holdings Inc , up 5.7% The top three S&P 500 .PL.INX percentage losers: ** Synopsys , down 3.1% ** PayPal Holdings Inc , down 2.9% ** Regeneron Pharmaceuticals Inc , down 2.8% The top three NYSE .PG.N percentage gainers: ** Matson Inc , up 37.4% ** Everi Holdings , up 21.9% ** Ambow Education Holding Ltd , up 18.9% The top two NYSE .PL.N percentage losers: ** Haverty Furniture Companies Inc , down 13.3% ** Mogu Inc , down 8.7% The top two Nasdaq .PG.O percentage gainers: ** Nkarta Inc , up 191.3% ** WiMi Hologram Cloud Inc , up 94.5% The top three Nasdaq .PL.O percentage losers: ** Centogene BV , down 21.7% ** Golden Bull Ltd , down 15.6% ** Patriot National Bancorp Inc , down 15.5% ** JPMorgan Chase & Co JPM.N: up 3.1% ** Citigroup C.N: up 2.9% ** Wells Fargo WFC.N: up 3.1% BUZZ-Big banks rise ahead of quarterly results next week ** WD-40 Co WDFC.O: down 5.4% BUZZ-Falls on downbeat Q3 results ** Greenbrier GBX.N: up 14.4% BUZZ-Rises after Q3 results beat estimates ** Express Inc EXPR.N: up 4.7% BUZZ-Reopens almost all stores, comparable sales improve ** Beyond Meat BYND.O: down 4.5% BUZZ-Citi says hard to look past headwinds, starts with 'sell' ** Walgreens WBA.O: up 1.8% BUZZ-Street View: Benefits of Walgreens' restructuring efforts remain doubtful ** Matson Inc MATX.N: up 37.4% BUZZ-Jumps on upbeat Q2 prelim results ** Netflix NFLX.O: up 5.8% BUZZ-Rises after report says GS hikes PT on content growth ** Hermitage Offshore Services PSV.N: up 285.2% BUZZ-Surges on agreements with lenders ** Amneal Pharma AMRX.N: up 7.1% BUZZ-Rises on FDA approval of generic schizophrenia drug ** Fastly FSLY.N: down 3.9% BUZZ-BofA double downgrades to 'underperform' on high valuations ** Gilead GILD.O: up 2.0% BUZZ-Rises on promising additional remdesivir data ** Unum Therapeutics UMRX.O: up 12.6% BUZZ-Jumps on disclosure of Fairmount 20% stake ** Eldorado Gold EGO.N: up 3.3% BUZZ-Gains as co expects higher Q2 production ** Anixa Biosciences Inc ANIX.O: up 9.1% BUZZ-Rises on possible European patent for cancer treatment tech ** Raytheon Technologies Corp RTX.N: up 1.8% BUZZ-Up after Vertical Research upgrades to 'buy' ** Oragenics OGEN.A: up 22.7% BUZZ-Rises as co starts animal testing of COVID-19 vaccine ** Houlihan Lokey HLI.N: down 2.2% BUZZ-Falls as JPM cuts to "neutral", citing poor M&A environment ** Everi Holdings Inc EVRI.N: up 21.9% BUZZ-Gaming fintech Everi rallies after Roth Capital starts with "buy" ** American Airlines Group Inc AAL.O: up 5.4% BUZZ-Rises after report says airline threatens to cancel some MAX orders ** Carnival Corp CCL.N: up 8.8% BUZZ-Jumps on plans of phased return 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 Dow rose in choppy trading on Friday, boosted by financial stocks but the sentiment was fragile as a record rise in coronavirus cases in the United States threatened to further damage Corporate America. up 1.54% (Compiled by Bharath Manjesh in Bengaluru) ((Bharath.ManjeshR@thomsonreuters.com; outside U.S. +91 80 6749 2703;)) 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: ** Carnival Corp , up 8.8% ** Royal Caribbean Cruises Ltd , up 7.1% ** United Airlines Holdings Inc , up 5.7% The top three S&P 500 .PL.INX percentage losers: ** Synopsys , down 3.1% ** PayPal Holdings Inc , down 2.9% ** Regeneron Pharmaceuticals Inc , down 2.8% The top three NYSE .PG.N percentage gainers: ** Matson Inc , up 37.4% ** Everi Holdings , up 21.9% ** Ambow Education Holding Ltd , up 18.9% The top two NYSE .PL.N percentage losers: ** Haverty Furniture Companies Inc , down 13.3% ** Mogu Inc , down 8.7% The top two Nasdaq .PG.O percentage gainers: ** Nkarta Inc , up 191.3% ** WiMi Hologram Cloud Inc , up 94.5% The top three Nasdaq .PL.O percentage losers: ** Centogene BV , down 21.7% ** Golden Bull Ltd , down 15.6% ** Patriot National Bancorp Inc , down 15.5% ** JPMorgan Chase & Co JPM.N: up 3.1% ** Citigroup C.N: up 2.9% ** Wells Fargo WFC.N: up 3.1% BUZZ-Big banks rise ahead of quarterly results next week ** WD-40 Co WDFC.O: down 5.4% BUZZ-Falls on downbeat Q3 results ** Greenbrier GBX.N: up 14.4% BUZZ-Rises after Q3 results beat estimates ** Express Inc EXPR.N: up 4.7% BUZZ-Reopens almost all stores, comparable sales improve ** Beyond Meat BYND.O: down 4.5% BUZZ-Citi says hard to look past headwinds, starts with 'sell' ** Walgreens WBA.O: up 1.8% BUZZ-Street View: Benefits of Walgreens' restructuring efforts remain doubtful ** Matson Inc MATX.N: up 37.4% BUZZ-Jumps on upbeat Q2 prelim results ** Netflix NFLX.O: up 5.8% BUZZ-Rises after report says GS hikes PT on content growth ** Hermitage Offshore Services PSV.N: up 285.2% BUZZ-Surges on agreements with lenders ** Amneal Pharma AMRX.N: up 7.1% BUZZ-Rises on FDA approval of generic schizophrenia drug ** Fastly FSLY.N: down 3.9% BUZZ-BofA double downgrades to 'underperform' on high valuations ** Gilead GILD.O: up 2.0% BUZZ-Rises on promising additional remdesivir data ** Unum Therapeutics UMRX.O: up 12.6% BUZZ-Jumps on disclosure of Fairmount 20% stake ** Eldorado Gold EGO.N: up 3.3% BUZZ-Gains as co expects higher Q2 production ** Anixa Biosciences Inc ANIX.O: up 9.1% BUZZ-Rises on possible European patent for cancer treatment tech ** Raytheon Technologies Corp RTX.N: up 1.8% BUZZ-Up after Vertical Research upgrades to 'buy' ** Oragenics OGEN.A: up 22.7% BUZZ-Rises as co starts animal testing of COVID-19 vaccine ** Houlihan Lokey HLI.N: down 2.2% BUZZ-Falls as JPM cuts to "neutral", citing poor M&A environment ** Everi Holdings Inc EVRI.N: up 21.9% BUZZ-Gaming fintech Everi rallies after Roth Capital starts with "buy" ** American Airlines Group Inc AAL.O: up 5.4% BUZZ-Rises after report says airline threatens to cancel some MAX orders ** Carnival Corp CCL.N: up 8.8% BUZZ-Jumps on plans of phased return 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 Dow rose in choppy trading on Friday, boosted by financial stocks but the sentiment was fragile as a record rise in coronavirus cases in the United States threatened to further damage Corporate America. up 1.54% (Compiled by Bharath Manjesh in Bengaluru) ((Bharath.ManjeshR@thomsonreuters.com; outside U.S. +91 80 6749 2703;)) 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: ** Carnival Corp , up 8.8% ** Royal Caribbean Cruises Ltd , up 7.1% ** United Airlines Holdings Inc , up 5.7% The top three S&P 500 .PL.INX percentage losers: ** Synopsys , down 3.1% ** PayPal Holdings Inc , down 2.9% ** Regeneron Pharmaceuticals Inc , down 2.8% The top three NYSE .PG.N percentage gainers: ** Matson Inc , up 37.4% ** Everi Holdings , up 21.9% ** Ambow Education Holding Ltd , up 18.9% The top two NYSE .PL.N percentage losers: ** Haverty Furniture Companies Inc , down 13.3% ** Mogu Inc , down 8.7% The top two Nasdaq .PG.O percentage gainers: ** Nkarta Inc , up 191.3% ** WiMi Hologram Cloud Inc , up 94.5% The top three Nasdaq .PL.O percentage losers: ** Centogene BV , down 21.7% ** Golden Bull Ltd , down 15.6% ** Patriot National Bancorp Inc , down 15.5% ** JPMorgan Chase & Co JPM.N: up 3.1% ** Citigroup C.N: up 2.9% ** Wells Fargo WFC.N: up 3.1% BUZZ-Big banks rise ahead of quarterly results next week ** WD-40 Co WDFC.O: down 5.4% BUZZ-Falls on downbeat Q3 results ** Greenbrier GBX.N: up 14.4% BUZZ-Rises after Q3 results beat estimates ** Express Inc EXPR.N: up 4.7% BUZZ-Reopens almost all stores, comparable sales improve ** Beyond Meat BYND.O: down 4.5% BUZZ-Citi says hard to look past headwinds, starts with 'sell' ** Walgreens WBA.O: up 1.8% BUZZ-Street View: Benefits of Walgreens' restructuring efforts remain doubtful ** Matson Inc MATX.N: up 37.4% BUZZ-Jumps on upbeat Q2 prelim results ** Netflix NFLX.O: up 5.8% BUZZ-Rises after report says GS hikes PT on content growth ** Hermitage Offshore Services PSV.N: up 285.2% BUZZ-Surges on agreements with lenders ** Amneal Pharma AMRX.N: up 7.1% BUZZ-Rises on FDA approval of generic schizophrenia drug ** Fastly FSLY.N: down 3.9% BUZZ-BofA double downgrades to 'underperform' on high valuations ** Gilead GILD.O: up 2.0% BUZZ-Rises on promising additional remdesivir data ** Unum Therapeutics UMRX.O: up 12.6% BUZZ-Jumps on disclosure of Fairmount 20% stake ** Eldorado Gold EGO.N: up 3.3% BUZZ-Gains as co expects higher Q2 production ** Anixa Biosciences Inc ANIX.O: up 9.1% BUZZ-Rises on possible European patent for cancer treatment tech ** Raytheon Technologies Corp RTX.N: up 1.8% BUZZ-Up after Vertical Research upgrades to 'buy' ** Oragenics OGEN.A: up 22.7% BUZZ-Rises as co starts animal testing of COVID-19 vaccine ** Houlihan Lokey HLI.N: down 2.2% BUZZ-Falls as JPM cuts to "neutral", citing poor M&A environment ** Everi Holdings Inc EVRI.N: up 21.9% BUZZ-Gaming fintech Everi rallies after Roth Capital starts with "buy" ** American Airlines Group Inc AAL.O: up 5.4% BUZZ-Rises after report says airline threatens to cancel some MAX orders ** Carnival Corp CCL.N: up 8.8% BUZZ-Jumps on plans of phased return 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 Dow rose in choppy trading on Friday, boosted by financial stocks but the sentiment was fragile as a record rise in coronavirus cases in the United States threatened to further damage Corporate America. up 0.62% Consumer Discretionary
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The top three S&P 500 .PG.INX percentage gainers: ** Carnival Corp , up 8.8% ** Royal Caribbean Cruises Ltd , up 7.1% ** United Airlines Holdings Inc , up 5.7% The top three S&P 500 .PL.INX percentage losers: ** Synopsys , down 3.1% ** PayPal Holdings Inc , down 2.9% ** Regeneron Pharmaceuticals Inc , down 2.8% The top three NYSE .PG.N percentage gainers: ** Matson Inc , up 37.4% ** Everi Holdings , up 21.9% ** Ambow Education Holding Ltd , up 18.9% The top two NYSE .PL.N percentage losers: ** Haverty Furniture Companies Inc , down 13.3% ** Mogu Inc , down 8.7% The top two Nasdaq .PG.O percentage gainers: ** Nkarta Inc , up 191.3% ** WiMi Hologram Cloud Inc , up 94.5% The top three Nasdaq .PL.O percentage losers: ** Centogene BV , down 21.7% ** Golden Bull Ltd , down 15.6% ** Patriot National Bancorp Inc , down 15.5% ** JPMorgan Chase & Co JPM.N: up 3.1% ** Citigroup C.N: up 2.9% ** Wells Fargo WFC.N: up 3.1% BUZZ-Big banks rise ahead of quarterly results next week ** WD-40 Co WDFC.O: down 5.4% BUZZ-Falls on downbeat Q3 results ** Greenbrier GBX.N: up 14.4% BUZZ-Rises after Q3 results beat estimates ** Express Inc EXPR.N: up 4.7% BUZZ-Reopens almost all stores, comparable sales improve ** Beyond Meat BYND.O: down 4.5% BUZZ-Citi says hard to look past headwinds, starts with 'sell' ** Walgreens WBA.O: up 1.8% BUZZ-Street View: Benefits of Walgreens' restructuring efforts remain doubtful ** Matson Inc MATX.N: up 37.4% BUZZ-Jumps on upbeat Q2 prelim results ** Netflix NFLX.O: up 5.8% BUZZ-Rises after report says GS hikes PT on content growth ** Hermitage Offshore Services PSV.N: up 285.2% BUZZ-Surges on agreements with lenders ** Amneal Pharma AMRX.N: up 7.1% BUZZ-Rises on FDA approval of generic schizophrenia drug ** Fastly FSLY.N: down 3.9% BUZZ-BofA double downgrades to 'underperform' on high valuations ** Gilead GILD.O: up 2.0% BUZZ-Rises on promising additional remdesivir data ** Unum Therapeutics UMRX.O: up 12.6% BUZZ-Jumps on disclosure of Fairmount 20% stake ** Eldorado Gold EGO.N: up 3.3% BUZZ-Gains as co expects higher Q2 production ** Anixa Biosciences Inc ANIX.O: up 9.1% BUZZ-Rises on possible European patent for cancer treatment tech ** Raytheon Technologies Corp RTX.N: up 1.8% BUZZ-Up after Vertical Research upgrades to 'buy' ** Oragenics OGEN.A: up 22.7% BUZZ-Rises as co starts animal testing of COVID-19 vaccine ** Houlihan Lokey HLI.N: down 2.2% BUZZ-Falls as JPM cuts to "neutral", citing poor M&A environment ** Everi Holdings Inc EVRI.N: up 21.9% BUZZ-Gaming fintech Everi rallies after Roth Capital starts with "buy" ** American Airlines Group Inc AAL.O: up 5.4% BUZZ-Rises after report says airline threatens to cancel some MAX orders ** Carnival Corp CCL.N: up 8.8% BUZZ-Jumps on plans of phased return 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 Dow rose in choppy trading on Friday, boosted by financial stocks but the sentiment was fragile as a record rise in coronavirus cases in the United States threatened to further damage Corporate America. .N At 12:27 ET, the Dow Jones Industrial Average .DJI was up 0.63% at 25,868.19.
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5555.0
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2020-07-10 00:00:00 UTC
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Friday's ETF with Unusual Volume: OMFL
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AAL
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https://www.nasdaq.com/articles/fridays-etf-with-unusual-volume%3A-omfl-2020-07-10
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The Invesco Russell 1000—Dynamic Multifactor ETF is seeing unusually high volume in afternoon trading Friday, with over 279,000 shares traded versus three month average volume of about 135,000. Shares of OMFL were up about 1.7% on the day.
Components of that ETF with the highest volume on Friday were American Airlines Group, trading up about 4.1% with over 43.1 million shares changing hands so far this session, and Carnival, up about 8.8% on volume of over 36.5 million shares. Equitrans Midstream is lagging other components of the Invesco Russell 1000—Dynamic Multifactor ETF Friday, trading lower by about 4%.
VIDEO: Friday's ETF with Unusual Volume: OMFL
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 Invesco Russell 1000—Dynamic Multifactor ETF is seeing unusually high volume in afternoon trading Friday, with over 279,000 shares traded versus three month average volume of about 135,000. Components of that ETF with the highest volume on Friday were American Airlines Group, trading up about 4.1% with over 43.1 million shares changing hands so far this session, and Carnival, up about 8.8% on volume of over 36.5 million shares. Equitrans Midstream is lagging other components of the Invesco Russell 1000—Dynamic Multifactor ETF Friday, trading lower by about 4%.
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The Invesco Russell 1000—Dynamic Multifactor ETF is seeing unusually high volume in afternoon trading Friday, with over 279,000 shares traded versus three month average volume of about 135,000. Equitrans Midstream is lagging other components of the Invesco Russell 1000—Dynamic Multifactor ETF Friday, trading lower by about 4%. VIDEO: Friday's ETF with Unusual Volume: OMFL 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 Invesco Russell 1000—Dynamic Multifactor ETF is seeing unusually high volume in afternoon trading Friday, with over 279,000 shares traded versus three month average volume of about 135,000. Components of that ETF with the highest volume on Friday were American Airlines Group, trading up about 4.1% with over 43.1 million shares changing hands so far this session, and Carnival, up about 8.8% on volume of over 36.5 million shares. VIDEO: Friday's ETF with Unusual Volume: OMFL 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 Invesco Russell 1000—Dynamic Multifactor ETF is seeing unusually high volume in afternoon trading Friday, with over 279,000 shares traded versus three month average volume of about 135,000. Shares of OMFL were up about 1.7% on the day. Components of that ETF with the highest volume on Friday were American Airlines Group, trading up about 4.1% with over 43.1 million shares changing hands so far this session, and Carnival, up about 8.8% on volume of over 36.5 million shares.
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5556.0
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2020-07-10 00:00:00 UTC
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Here's Why Airline Stocks Are Up Today
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AAL
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https://www.nasdaq.com/articles/heres-why-airline-stocks-are-up-today-2020-07-10
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nan
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What happened
It's a "risk-on" day on Wall Street Friday, as after a few days of selling, investors are taking a glass-half-full view of where things stand with the COVID-19 pandemic. That's helping to give a lift to airline shares, one of the sectors most impacted by the pandemic.
Spirit Airlines (NYSE: SAVE) is leading the sector higher on Friday, up 9% as of noon EDT, while shares of American Airlines Group (NASDAQ: AAL), United Airlines Holdings (NASDAQ: UAL), and JetBlue Airways (NASDAQ: JBLU) are all up more than 5% apiece and shares of other carriers including Southwest Airlines (NYSE: LUV) and Delta Air Lines (NYSE: DAL) are not far behind.
So what
Airline stocks have been volatile since the pandemic began. The stocks bottomed out in March on concerns that a severe drop off in travel demand would lead to a round of bankruptcies in the sector, but have recovered somewhat in the months since as travel has slowly returned.
In recent weeks the airlines have traded mostly on broader market sentiment about progress in fighting the pandemic, and indications about what the economy will look like once the outbreak is behind us. Friday brought good news in the fight against the COVID-19 virus, with Gilead Sciences presenting data indicating its remdesivir treatment reduced the risk of death.
Image source: Getty Images.
There was company-specific news for airline investors to consider on Friday as well. United reached a deal with its pilots union to offer early retirements and voluntary furloughs, potentially reducing the need for the airline to do massive involuntary layoffs later this Fall. American, meanwhile, is said to be reconsidering at least part of its Boeing 737 Max order as it rethinks its capacity requirements in the years to come.
Spirit might have gotten a lift from commentary from Cowen analyst Helane Becker that low-cost carriers are better suited to profit in this environment. With corporate and international travel expected to be low through 2020, at least the airlines are focused on stimulating domestic leisure demand via fare sales.
Now what
Airline stocks are in an odd position right now. With the industry raising nearly $50 billion in liquidity to go along with a similar amount of government support, there is no carrier that is a near-term risk of bankruptcy. However, with a full recovery likely to take years, there isn't a lot of reason for investors to get excited about buying in.
For now, expect airline stocks to continue to trade along with broader markets. As summer vacation season ends and government prohibitions against layoffs expire this fall, expect the entire industry to shrink dramatically in the months to come. The airlines are likely to be focused on cash preservation, and not expansion, through 2021 and earnings will be muted at best.
For those interested in buying in and waiting out a recovery, it is best to stick to the top operators in the industry instead of adding exposure to a wider basket of stocks including some of the more vulnerable airlines.
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 June 2, 2020
Lou Whiteman owns shares of Delta Air Lines and Spirit Airlines. The Motley Fool owns shares of and recommends Gilead Sciences and 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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Spirit Airlines (NYSE: SAVE) is leading the sector higher on Friday, up 9% as of noon EDT, while shares of American Airlines Group (NASDAQ: AAL), United Airlines Holdings (NASDAQ: UAL), and JetBlue Airways (NASDAQ: JBLU) are all up more than 5% apiece and shares of other carriers including Southwest Airlines (NYSE: LUV) and Delta Air Lines (NYSE: DAL) are not far behind. Friday brought good news in the fight against the COVID-19 virus, with Gilead Sciences presenting data indicating its remdesivir treatment reduced the risk of death. United reached a deal with its pilots union to offer early retirements and voluntary furloughs, potentially reducing the need for the airline to do massive involuntary layoffs later this Fall.
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Spirit Airlines (NYSE: SAVE) is leading the sector higher on Friday, up 9% as of noon EDT, while shares of American Airlines Group (NASDAQ: AAL), United Airlines Holdings (NASDAQ: UAL), and JetBlue Airways (NASDAQ: JBLU) are all up more than 5% apiece and shares of other carriers including Southwest Airlines (NYSE: LUV) and Delta Air Lines (NYSE: DAL) are not far behind. The Motley Fool owns shares of and recommends Gilead Sciences and Spirit Airlines. The Motley Fool recommends Delta Air Lines, JetBlue Airways, and Southwest Airlines.
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Spirit Airlines (NYSE: SAVE) is leading the sector higher on Friday, up 9% as of noon EDT, while shares of American Airlines Group (NASDAQ: AAL), United Airlines Holdings (NASDAQ: UAL), and JetBlue Airways (NASDAQ: JBLU) are all up more than 5% apiece and shares of other carriers including Southwest Airlines (NYSE: LUV) and Delta Air Lines (NYSE: DAL) are not far behind. For those interested in buying in and waiting out a recovery, it is best to stick to the top operators in the industry instead of adding exposure to a wider basket of stocks including some of the more vulnerable airlines. See the 10 stocks *Stock Advisor returns as of June 2, 2020 Lou Whiteman owns shares of Delta Air Lines and Spirit Airlines.
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Spirit Airlines (NYSE: SAVE) is leading the sector higher on Friday, up 9% as of noon EDT, while shares of American Airlines Group (NASDAQ: AAL), United Airlines Holdings (NASDAQ: UAL), and JetBlue Airways (NASDAQ: JBLU) are all up more than 5% apiece and shares of other carriers including Southwest Airlines (NYSE: LUV) and Delta Air Lines (NYSE: DAL) are not far behind. That's right -- they think these 10 stocks are even better buys. The Motley Fool owns shares of and recommends Gilead Sciences and Spirit Airlines.
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5557.0
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2020-07-10 00:00:00 UTC
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Report: American Airlines Considering Cancelling Some 737 Max Orders
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AAL
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https://www.nasdaq.com/articles/report%3A-american-airlines-considering-cancelling-some-737-max-orders-2020-07-10
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nan
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American Airlines Group (NASDAQ: AAL) is reportedly considering cancelling some of the Boeing (NYSE: BA) 737 Max planes it has on order, a fresh threat to Boeing's troubled jet.
American has orders for 100 737 Max airplanes plus options for 60 more, and as recently as February, was eager to take delivery on the planes as soon as possible. But the COVID-19 pandemic has switched airlines from growth to focusing on survival, and with traffic demand down year over year the carriers are looking to shrink their fleets instead of expand.
Image source: American Airlines.
According to a Friday Wall Street Journal report American has threatened to cancel some of its 737 Max orders. The report said American has had issues securing financing for 17 jets it had expected Boeing to deliver this year.
The company declined comment, but American has the highest debt total in the industry and has been adding new debt in recent months to survive as it burns through about $40 million per day.
Boeing's 737 Max had issues even before the pandemic. The plane has been grounded since March 2019 following a pair of fatal accidents. Boeing hopes to have it airborne again later this year, but the company will likely find it difficult to place all the planes it has manufactured but not yet delivered.
A number of Boeing customers have already cancelled 737 Max orders this year. With each new cancellation it grows more likely Boeing will be forced to slow 737 Max production rates in 2021 and perhaps beyond as it works through its inventory backlog.
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 June 2, 2020
Lou Whiteman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines Group (NASDAQ: AAL) is reportedly considering cancelling some of the Boeing (NYSE: BA) 737 Max planes it has on order, a fresh threat to Boeing's troubled jet. Boeing hopes to have it airborne again later this year, but the company will likely find it difficult to place all the planes it has manufactured but not yet delivered. With each new cancellation it grows more likely Boeing will be forced to slow 737 Max production rates in 2021 and perhaps beyond as it works through its inventory backlog.
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American Airlines Group (NASDAQ: AAL) is reportedly considering cancelling some of the Boeing (NYSE: BA) 737 Max planes it has on order, a fresh threat to Boeing's troubled jet. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. See the 10 stocks *Stock Advisor returns as of June 2, 2020 Lou Whiteman has no position in any of the stocks mentioned.
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American Airlines Group (NASDAQ: AAL) is reportedly considering cancelling some of the Boeing (NYSE: BA) 737 Max planes it has on order, a fresh threat to Boeing's troubled jet. 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 June 2, 2020 Lou Whiteman has no position in any of the stocks mentioned.
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American Airlines Group (NASDAQ: AAL) is reportedly considering cancelling some of the Boeing (NYSE: BA) 737 Max planes it has on order, a fresh threat to Boeing's troubled jet. Boeing's 737 Max had issues even before the pandemic. A number of Boeing customers have already cancelled 737 Max orders this year.
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5558.0
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2020-07-09 00:00:00 UTC
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Delta May Fit a Very Long-Term Portfolio
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AAL
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https://www.nasdaq.com/articles/delta-may-fit-a-very-long-term-portfolio-2020-07-09
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
As the world returns to normalcy, the airline stocks are having trouble adjusting. Sure, Delta Air Lines (NYSE:DAL), American Airlines (NASDAQ:AAL) and others burst higher from the 2020 lows. But DAL stock and others have since pulled back even as the economy continues to get back into action.
Source: NextNewMedia / Shutterstock.com
Some will argue that we’re seeing a disconnect between the stock market and the economy. That view is very legitimate, even if those dissenters acknowledge that equities tend to be forward looking and not focused on the “right now.”
Is There a Disconnect?
So what exactly is the market seeing that makes investors so optimistic? Cases of the novel coronavirus continue to surge. More cities and states continue to take economically negative measures to help slow the spread of Covid-19, as the U.S. is clearly lagging many other developed nations in its fight against the disease.
Despite a double-digit unemployment rate and an economy that has the potential to stall as Covid-19 cases climb, equities continue to march higher. That’s the difficult balance we’re trying to achieve right now – whether equities are moving in the right direction or the wrong direction.
7 Environmental Energy Stocks to Watch as Summer Sets In
Keep in mind, stocks can continue higher – and even retest the highs – despite surging Covid-19 cases. Will it be enough to keep travelers at home? Shoppers out of the mall? Even if it is, markets could hit new highs if investors are simply willing to pay a premium to own equities.
Hey, no one said this game was easy.
In the meantime, investors continue to look at cruise stocks, casinos and airlines like Delta to get a feel for whether the rally is sustainable. Let’s look at the technicals.
Trading DAL Stock
Click to Enlarge
Source: Chart courtesy of StockCharts.com
A quick look at the chart shows how violent the Covid-19 sell-off was, as well as how potent the rebound was in May.
In May, DAL stock actually broke below the March lows, bottoming near $17.50. From there, shares went soaring higher, rallying more than 100% in less than a month. Since then though, shares have pulled back notably and are now resting.
Investors are trying to figure out, what comes next – a break higher or a break lower?
With the recent pullback, a new downtrend resistance mark formed (blue line). Shares cleared that mark recently but continue to trade in a narrowing range. Considering that the stock remains above support – which is the $27 area and 50-day moving average – and given that the most recent consolidation comes after a rally, we have to assume the stock is bullish until proven otherwise.
However, should DAL stock lose the $26 mark, this stock could be in for some turbulence.
Specifically, it could fill the gap back toward $23. Below that puts $20 and a possible gap fill back toward $19.25 on the table. If this situation were to play out, I’d be looking at the $20 to $21 area to buoy Delta. This was big time support for months, until giving way temporarily in May.
Is Delta a Good Buy?
Click to Enlarge
This is a loaded question. The company is still burning a ton of cash. Management’s hope was to get down to “just” $50 million a day by the end of Q2.
Even if it did, we’re still talking about a massive hit to the financials versus just six months ago. Further, the recovery in airline traffic has not been robust. While Americans may be ready to get back to beach parties and pubs, they are not storming the gateways at the airport. So far, TSA traffic is at about 20% year-ago levels.
Analysts do expect a big rebound in 2021, but will it be enough? Estimates call for 65% revenue growth to $25.2 billion. However, that’s still well below 2019’s result of $47 billion.
On the earnings front, analysts at least expect DAL stock to be profitable next year, with forecasts calling for earnings of $2.91 per share. Again though, that’s down more than 50% from 2019’s $7.31 per share.
The Bottom Line on DAL Stock
Airline stocks didn’t command a premium before the Covid-19 sell-off, so I’m not sure why they would now.
DAL stock may struggle for the next few years, as it probably should. However, for long, long-term investors, it may present decent value.
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 Delta May Fit a Very Long-Term Portfolio 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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Sure, Delta Air Lines (NYSE:DAL), American Airlines (NASDAQ:AAL) and others burst higher from the 2020 lows. More cities and states continue to take economically negative measures to help slow the spread of Covid-19, as the U.S. is clearly lagging many other developed nations in its fight against the disease. Despite a double-digit unemployment rate and an economy that has the potential to stall as Covid-19 cases climb, equities continue to march higher.
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Sure, Delta Air Lines (NYSE:DAL), American Airlines (NASDAQ:AAL) and others burst higher from the 2020 lows. InvestorPlace - Stock Market News, Stock Advice & Trading Tips As the world returns to normalcy, the airline stocks are having trouble adjusting. The Bottom Line on DAL Stock Airline stocks didn’t command a premium before the Covid-19 sell-off, so I’m not sure why they would now.
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Sure, Delta Air Lines (NYSE:DAL), American Airlines (NASDAQ:AAL) and others burst higher from the 2020 lows. InvestorPlace - Stock Market News, Stock Advice & Trading Tips As the world returns to normalcy, the airline stocks are having trouble adjusting. But DAL stock and others have since pulled back even as the economy continues to get back into action.
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Sure, Delta Air Lines (NYSE:DAL), American Airlines (NASDAQ:AAL) and others burst higher from the 2020 lows. But DAL stock and others have since pulled back even as the economy continues to get back into action. However, should DAL stock lose the $26 mark, this stock could be in for some turbulence.
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5559.0
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2020-07-09 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-2020-07-09
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Although the stock market is near an all-time high, there are still many sectors that remain below their pre-pandemic levels. One of those sectors is the airlines, which for months have been a fierce battleground between those who think the worst of the pandemic is behind us, and others who expect a prolonged slowdown in air traffic.
For everyone in between, airline stocks present a high risk/high reward opportunity in need of a roadmap. This article is meant to help you determine if buying or selling airlines is right for you, as well as what to look for when shopping for top airline stocks.
Image source: Getty Images.
Performance
Since reaching their lows in early May, airlines have enjoyed a nice recovery, but are still down substantially for the year.
LUV data by YCharts
As you can see, airlines are not all performing the same. There's a big difference between the performance of Southwest Airlines (NYSE: LUV) and United Airlines (NASDAQ: UAL), and a lot of that has to do with varying degrees of financial strength.
Financial strength (or weakness)
The first main aspect to consider when you're thinking about buying or selling an airline stock in this market is the strength of its balance sheet. In a time when air traffic and revenues are substantially lower than normal, it matters how strong a company is financially, more so than even how efficient the company's operations are. Therefore, a company with a lot of cash and ample credit is preferred over even the most efficient airlines. This isn't to say that operational strength doesn't matter -- it does -- but it matters less in a crisis, especially one of this magnitude.
LUV Debt To Capital (Quarterly) data by YCharts
From a balance sheet perspective, Southwest Airlines is the best. This shouldn't come as a surprise to those who have been following the industry for a while. Yet even Southwest is concerned, citing cost and spending cuts, an earnings collapse, and the need for government support even with its "fortress balance sheet."
Another point to consider is the daily cash burn rate, which is the amount of cash an airline is losing every day. Many of the prior estimates from late April have been revised to reflect improvements to air traffic as states reopened their economies.
METRIC
SOUTHWEST AIRLINES
DELTA AIR LINES
UNITED AIRLINES
AMERICAN AIRLINES
ALASKA AIR GROUP
JETBLUE AIRWAYS
SPIRIT AIRLINES
Market capitalization
$20.2 billion
$18.1 billion
$10.2 billion
$6.5 billion
$4.5 billion
$3.0 billion
$1.6 billion
Q2 original daily cash burn estimates from April and May
$30 million to $35 million
$50 million by end of June
$40 million to $45 million
$70 million down to $50 million by June
$13.3 million in March, $8.7 million in April, $6.7 million by June
$18 million in March, reduce to $10 million in May
$4 million
Q2 updated daily cash burn estimates from June
$20 million to $25 million in Q2
$30 million by June
$40 million in Q2, down to $30 million in Q3
$40 million by June
Burned just $5.7 million in May, expects to fall to $0 by end of 2020
Cut CAPEX and capacity to further lower cash burn
Decreases during second half of 2020
Data sources: Southwest Airlines, Delta Air Lines, United Airlines, American Airlines, Alaska Air Group, JetBlue Airways, Spirit Airlines.
Some revisions have been staggering. For example, American Airlines (NASDAQ: AAL) was burning around $100 million per day in April. Although it has improved since then, the company's cash burn is still among the highest of all airlines, and higher than that of Delta Air Lines (NYSE: DAL) and Southwest, even though they are around three times American's size.
Even though nearly all of the major airlines have revised their April estimates to reflect less harmful daily cash burn, it's still cash burn. There's no sugarcoating that their businesses have gone from making money to losing money.
Alaska Air Group (NYSE: ALK) estimates that it can reach breakeven by the end of 2020. Delta estimates that it could reach breakeven by early 2021.
Another estimate that airlines are conveying to investors is how much cash they have on hand to handle an ongoing cash burn. Southwest forecasts that it has two years of cash on hand, based on its revised cash burn rate of $20 million per day.
It gets tricky once you realize how sensitive these estimates are. For example, Southwest's cash will only go half as far if its burn rate increases to around its original April estimates. That could happen if the rise in COVID-19 cases in Texas, Florida, Arizona, and other states brings a second wave of shutdowns.
Digging deeper
Digging deeper into the cash burn numbers, it's clear that some airlines are not taking the pandemic as seriously. For example, Delta and JetBlue Airways (NASDAQ: JBLU) blocked middle seats on their domestic flights, and Southwest has ensured that it will not book a single flight at more than two-thirds capacity. On the other hand, American Airlines was keeping planes at 85% capacity, but starting July 1, it resumed booking to full capacity, if possible. United and Spirit Airlines (NYSE: SAVE) also aren't capping capacity. Therefore, although American has substantially decreased its cash burn estimates, that assumption is grounded in the fact that it isn't restricting capacity on its planes.
It's hard not to notice that the airlines with the loosest attitudes about capacity are also the ones that have the weakest balance sheets and whose stocks have been hit the hardest by the pandemic. Ignoring social distancing advice in an effort to maximize the revenue from a plane may help their short-term numbers, but it also could rub customers the wrong way or even dissuade passengers from traveling with these airlines altogether.
Pick what's best for you
Airlines aren't for everyone. If you have a long-term time horizon and believe that airline traffic bottomed in the second quarter, will gradually increase in the third and fourth quarters, and will return somewhat to normal next year, you should probably be a buyer of airlines. If you have a short-term time horizon, believe a vaccine could take a while to implement, and believe that there could be a second wave of COVID-19 cases that causes airline traffic to regress and stall at Q2 levels, you may want to sell airlines.
Even if you're somewhat undecided, my advice would be to only consider the best of the airline stocks, which would be mainly Southwest and Delta, and maybe the small but strong airlines like Alaska and JetBlue. These companies could provide a strong long-term investment. With this comes a good amount of risk, but you'd be doing yourself a favor by backing only the best in the sector.
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*Stock Advisor returns as of June 2, 2020
Daniel Foelber owns shares of Delta Air Lines and Southwest Airlines. The Motley Fool owns shares of and recommends Spirit Airlines. 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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For example, American Airlines (NASDAQ: AAL) was burning around $100 million per day in April. Although it has improved since then, the company's cash burn is still among the highest of all airlines, and higher than that of Delta Air Lines (NYSE: DAL) and Southwest, even though they are around three times American's size. It's hard not to notice that the airlines with the loosest attitudes about capacity are also the ones that have the weakest balance sheets and whose stocks have been hit the hardest by the pandemic.
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For example, American Airlines (NASDAQ: AAL) was burning around $100 million per day in April. Market capitalization $20.2 billion $18.1 billion $10.2 billion $6.5 billion $4.5 billion $3.0 billion $1.6 billion Q2 original daily cash burn estimates from April and May $30 million to $35 million $50 million by end of June $40 million to $45 million $70 million down to $50 million by June $13.3 million in March, $8.7 million in April, $6.7 million by June $18 million in March, reduce to $10 million in May $4 million Q2 updated daily cash burn estimates from June $20 million to $25 million in Q2 $30 million by June $40 million in Q2, down to $30 million in Q3 $40 million by June Burned just $5.7 million in May, expects to fall to $0 by end of 2020 Cut CAPEX and capacity to further lower cash burn Decreases during second half of 2020 Data sources: Southwest Airlines, Delta Air Lines, United Airlines, American Airlines, Alaska Air Group, JetBlue Airways, Spirit Airlines. See the 10 stocks *Stock Advisor returns as of June 2, 2020 Daniel Foelber owns shares of Delta Air Lines and Southwest Airlines.
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For example, American Airlines (NASDAQ: AAL) was burning around $100 million per day in April. Market capitalization $20.2 billion $18.1 billion $10.2 billion $6.5 billion $4.5 billion $3.0 billion $1.6 billion Q2 original daily cash burn estimates from April and May $30 million to $35 million $50 million by end of June $40 million to $45 million $70 million down to $50 million by June $13.3 million in March, $8.7 million in April, $6.7 million by June $18 million in March, reduce to $10 million in May $4 million Q2 updated daily cash burn estimates from June $20 million to $25 million in Q2 $30 million by June $40 million in Q2, down to $30 million in Q3 $40 million by June Burned just $5.7 million in May, expects to fall to $0 by end of 2020 Cut CAPEX and capacity to further lower cash burn Decreases during second half of 2020 Data sources: Southwest Airlines, Delta Air Lines, United Airlines, American Airlines, Alaska Air Group, JetBlue Airways, Spirit Airlines. Even though nearly all of the major airlines have revised their April estimates to reflect less harmful daily cash burn, it's still cash burn.
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For example, American Airlines (NASDAQ: AAL) was burning around $100 million per day in April. Although it has improved since then, the company's cash burn is still among the highest of all airlines, and higher than that of Delta Air Lines (NYSE: DAL) and Southwest, even though they are around three times American's size. Even though nearly all of the major airlines have revised their April estimates to reflect less harmful daily cash burn, it's still cash burn.
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5560.0
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2020-07-09 00:00:00 UTC
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Here's Why Investors Should Ignore Airline Expansion Plans
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AAL
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https://www.nasdaq.com/articles/heres-why-investors-should-ignore-airline-expansion-plans-2020-07-09
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nan
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It's a tough time to be an airline investor. The companies have been hit hard by the COVID-19 pandemic, with second-quarter revenue expected to fall 90% year over year. The stocks plunged in March only to recover somewhat in early summer, but have recently been under pressure once again.
The volatility is being driven by the continued uncertainty surrounding the pandemic and seemingly conflicting statements from the airlines concerning their growth outlook.
Airline data by YCharts
The airlines are adding flights, but after canceling most of their schedules in March and April, that growth is coming off of a very low base. The markets at times have overreacted to small additions: Shares of American Airlines Group (NASDAQ: AAL) rocketed 40% higher in a single trading day in early June after the company said it was adding flights.
The growth announcements are sending mixed messages about the health of the industry. United Airlines Holdings (NASDAQ: UAL), to use one example, announced it's adding nearly 25,000 flights in August but also warned in a regulatory filing its flying capacity will be down 65% year over year for the month.
Here's what investors need to know about airline expansion plans, and what to focus on in the months to come.
Not all growth is equal
The airlines have taken different approaches to rebuilding their schedules. United and American have aggressively added seats in an apparent attempt to soak up whatever business is out there. Their additions are focused on tourist destinations and parts of the country less impacted by the virus.
Southwest Airlines (NYSE: LUV) was more judicious in its initial cuts and, with more of an inventory of flights to sell in May and June, likely has the industry's clearest read on demand. Delta Air Lines (NYSE: DAL), meanwhile, has taken a more deliberate approach than American or United to rebuilding its network and is adding a handful of flights to each of its U.S. hubs.
Delta and Southwest have also committed to keeping middle seats empty into the fall, at the earliest. So they have less inventory available but also potentially can charge a slight premium due to the perceived added safety.
Interestingly, although American was the first to add capacity in June, the airline has been among the slowest to expand its offerings. That could be interpreted as American seeing limits to how much demand is growing amid a spike in new COVID-19 cases, or it could be setting the table for a second pulldown in the fall.
Expect layoffs. Lots of layoffs.
One of the factors driving airline expansion is the payroll protection granted to the industry as part of the CARES Act stimulus plan. Airlines got $25 billion to support payrolls through the crisis, on the condition there be no layoffs before Sept. 30.
That largesse lessens the risk of adding flights. The airlines have attempted to lower their headcounts via voluntary separation packages and early retirements. But with the companies forced to keep workers on the payroll whether they are flying or not, and with government support helping to make marginal flying more profitable, the airlines today can operate flights that might not make sense in more normal times.
Image source: Getty Images.
That all changes come Sept. 30. Airline unions are lobbying Congress to extend the payroll protection to avoid mass layoffs, but absent a decree from Washington, the airlines are making plans to contract. United and Delta have each already warned employees layoffs could be on the horizon, and Southwest has said it could be forced to furlough for the first time in its nearly 50-year history.
We don't yet know how many jobs are at risk. United has warned it could furlough more than half of its workers in a worst-case scenario. Whatever the number is, it's likely to be substantial. The U.S. commercial fleet is expected to be at least 20% smaller at the end of 2020 than it was at the beginning of the year.
At best, that would mean that this summer's expansion is the last we will hear of growth in 2020 and, more worrisome, it could mean that airlines cut a large number of flights -- and opportunities to generate revenue -- as the payroll support comes to an end.
What is an investor to do?
It's wrong to suggest investors ignore the schedule adjustments, because the adding and subtracting of flights does provide valuable real-time insight into what demand the airlines are seeing. But be careful trading based on those headlines.
The bottom line for airlines is we have seen nothing to suggest there will be a quick recovery. It still seems likely it will be 2022, at best, before schedules are fully restored to pre-pandemic levels. And the mix of business and leisure travel might take longer than that to recover, which could alter profitability.
The airlines will be smaller for the foreseeable future, but I'm still willing to bet that, given enough time, air travel demand will recover.
For those interested in buying in, it is best to assume losses through 2020 and at least factor in the threat of a second wave to the pandemic that keeps travelers away for longer than hoped. The airlines have raised nearly $100 billion in private and government funds so far this year, and each has a runway, but focus on those best-prepared to weather a prolonged downturn.
Southwest, which has about two years' worth of cash on hand, and Delta, with a more conservative schedule, fewer unions to navigate, and plans to hit breakeven by early 2021, remain the top choices for those wishing to dip a toe in the airlines.
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 June 2, 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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The markets at times have overreacted to small additions: Shares of American Airlines Group (NASDAQ: AAL) rocketed 40% higher in a single trading day in early June after the company said it was adding flights. At best, that would mean that this summer's expansion is the last we will hear of growth in 2020 and, more worrisome, it could mean that airlines cut a large number of flights -- and opportunities to generate revenue -- as the payroll support comes to an end. Southwest, which has about two years' worth of cash on hand, and Delta, with a more conservative schedule, fewer unions to navigate, and plans to hit breakeven by early 2021, remain the top choices for those wishing to dip a toe in the airlines.
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The markets at times have overreacted to small additions: Shares of American Airlines Group (NASDAQ: AAL) rocketed 40% higher in a single trading day in early June after the company said it was adding flights. The airlines will be smaller for the foreseeable future, but I'm still willing to bet that, given enough time, air travel demand will recover. See the 10 stocks *Stock Advisor returns as of June 2, 2020 Lou Whiteman owns shares of Delta Air Lines.
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The markets at times have overreacted to small additions: Shares of American Airlines Group (NASDAQ: AAL) rocketed 40% higher in a single trading day in early June after the company said it was adding flights. Airline data by YCharts The airlines are adding flights, but after canceling most of their schedules in March and April, that growth is coming off of a very low base. United Airlines Holdings (NASDAQ: UAL), to use one example, announced it's adding nearly 25,000 flights in August but also warned in a regulatory filing its flying capacity will be down 65% year over year for the month.
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The markets at times have overreacted to small additions: Shares of American Airlines Group (NASDAQ: AAL) rocketed 40% higher in a single trading day in early June after the company said it was adding flights. Here's what investors need to know about airline expansion plans, and what to focus on in the months to come. And the mix of business and leisure travel might take longer than that to recover, which could alter profitability.
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5561.0
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2020-07-09 00:00:00 UTC
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American Airlines delays HK flights over new COVID-19 testing rules
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AAL
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https://www.nasdaq.com/articles/american-airlines-delays-hk-flights-over-new-covid-19-testing-rules-2020-07-09
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nan
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nan
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July 9 (Reuters) - American Airlines Group Inc AAL.O said on Thursday it delayed flights to Hong Kong, a day after the city introduced mandatory virus tests for all arriving crew members.
Airline crew were previously exempted from tests and quarantine obligations in Hong Kong, but a recent surge in COVID-19 cases in the city prompted its health chiefs to introduce stricter measures to combat rising concerns of a community outbreak.
"Starting July 8, crew members of aircrafts entering Hong Kong via the Hong Kong International Airport will be subject to mandatory COVID-19 testing...in addition to a 14-day medical surveillance," a spokesman for Hong Kong's Department of Health said in an email to Reuters.
American was scheduled to resume a Dallas/Fort Worth-Hong Kong passenger flight three times a week, starting July 9, after passenger service to the city was suspended towards the end of January. The airline has now pushed resumption of the service to Aug. 5.
"We've been making regular adjustments to our schedule to match demand, and we consider a range of factors including travel restrictions or entry requirements in making network decisions," American Airlines said.
Several media reports also said United Airlines Holdings Inc UAL.O was another U.S. airline to cancel flight to and from Hong Kong. United did not immediately respond to a Reuters request for comment.
(Reporting by Ankit Ajmera in Bengaluru and Jamie Freed in Sydney; Editing by Shinjini Ganguli)
((ankit.ajmera@thomsonreuters.com; within U.S. +1 646 223 8780, outside U.S. +91 80 6182 2596;))
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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July 9 (Reuters) - American Airlines Group Inc AAL.O said on Thursday it delayed flights to Hong Kong, a day after the city introduced mandatory virus tests for all arriving crew members. Airline crew were previously exempted from tests and quarantine obligations in Hong Kong, but a recent surge in COVID-19 cases in the city prompted its health chiefs to introduce stricter measures to combat rising concerns of a community outbreak. (Reporting by Ankit Ajmera in Bengaluru and Jamie Freed in Sydney; Editing by Shinjini Ganguli) ((ankit.ajmera@thomsonreuters.com; within U.S. +1 646 223 8780, outside U.S. +91 80 6182 2596;)) 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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July 9 (Reuters) - American Airlines Group Inc AAL.O said on Thursday it delayed flights to Hong Kong, a day after the city introduced mandatory virus tests for all arriving crew members. "Starting July 8, crew members of aircrafts entering Hong Kong via the Hong Kong International Airport will be subject to mandatory COVID-19 testing...in addition to a 14-day medical surveillance," a spokesman for Hong Kong's Department of Health said in an email to Reuters. American was scheduled to resume a Dallas/Fort Worth-Hong Kong passenger flight three times a week, starting July 9, after passenger service to the city was suspended towards the end of January.
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July 9 (Reuters) - American Airlines Group Inc AAL.O said on Thursday it delayed flights to Hong Kong, a day after the city introduced mandatory virus tests for all arriving crew members. "Starting July 8, crew members of aircrafts entering Hong Kong via the Hong Kong International Airport will be subject to mandatory COVID-19 testing...in addition to a 14-day medical surveillance," a spokesman for Hong Kong's Department of Health said in an email to Reuters. Several media reports also said United Airlines Holdings Inc UAL.O was another U.S. airline to cancel flight to and from Hong Kong.
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July 9 (Reuters) - American Airlines Group Inc AAL.O said on Thursday it delayed flights to Hong Kong, a day after the city introduced mandatory virus tests for all arriving crew members. The airline has now pushed resumption of the service to Aug. 5. "We've been making regular adjustments to our schedule to match demand, and we consider a range of factors including travel restrictions or entry requirements in making network decisions," American Airlines said.
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5562.0
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2020-07-09 00:00:00 UTC
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After the Pullback, Now May Be the Time to Buy Delta Stock
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AAL
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https://www.nasdaq.com/articles/after-the-pullback-now-may-be-the-time-to-buy-delta-stock-2020-07-09
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
After getting ahead of itself in June, Delta Air Lines (NYSE:DAL) stock has come back to earth. Somewhat. But, while uncertainty continues for the struggling legacy carrier, there may be good reason why DAL stock is a buy at today’s prices.
Source: NextNewMedia / Shutterstock.com
Granted, there’s reason to be concerned. With some airlines lining up for more bailout funds, it’s obvious a V-shaped recovery remains a long shot. Yet, compared to rivals like American Airlines (NASDAQ:AAL), Delta is still in a much better place financially.
Unlike American, Delta is not joining in for more CARES Act financing. With daily cash burn trending lower, the company likely has sufficient liquidity to ride out the rest of the storm. In short, this airline remains the “best of the worst,” with “worst” referring to legacy airlines.
7 Environmental Energy Stocks to Watch as Summer Sets In
But, this alone doesn’t make it a strong opportunity. Besides being “less bad,” the airline needs to wow investors in the upcoming quarters. But, it’s possible the company beats its current low-ball guidance. If this pans out, shares could move much higher from here.
Overall, it may be best to continue sitting out on airline stocks. Yet, if you’re looking for exposure to a potential airline comeback, consider Delta a cautious buy.
Passenger Traffic Recovery and DAL Stock
As InvestorPlace’s Mark Hake discussed Jun 30, passenger traffic continues to trend higher. Sure, it remains far below where it was a year ago. But still, this slight improvement means a passenger traffic recovery remains in motion.
Yet, this may not be enough. Domestic leisure traffic may be picking up. But the same can’t be said about international and business travel. It’s not just health concerns from travelers hurting demand. EU travel restrictions are another factor keeping this lucrative segment of air travel at depressed levels.
With business travel, corporate America now has virtual alternatives to in-person meetings and conferences. It’s debatable whether this will cause a secular decline in business travel. But, it’s a negative factor the industry doesn’t need right now.
In short, everything hinges on going full-steam ahead with the domestic traveler market. Yet, while it’s easy to focus on the negatives, these risks do not necessarily mean Delta’s financial performance can’t continue to improve.
Hake touched on this in his write-up. The company expects cash burn to continue falling through 2020. When will the carrier get back to breakeven? The current forecast says next spring.
However, you could make the argument that today’s guidance is conservative. That leaves plenty of room for better-than-expected results.
How Delta Could Surprise
As this commentator recently noted, it’s possible that Delta is being conservative with guidance right now. Currently, the airline’s outlook calls for this summer’s revenue to be at 25% of last year’s levels. But, air traffic numbers have already topped the 25% mark. With more flights and greater capacity expected in July and August, results could easily beat guidance.
Better-than-expected revenue means lower-than-expected cash burn. In other words, the timeline back to “normal” may happen sooner than expected for Delta. It’s possible the company gets to breakeven well before spring 2021.
If this scenario plays out, it’s safe to say DAL stock will head back to higher price levels. It may not get back to pre-pandemic prices (around $60 per share). But, heading back to between $40 and $50 per share would be more than enough. In other words, 44% to 80% share price upside is more than possible.
However, what if this bullish scenario doesn’t play out? While shares have pulled back from the early June exuberance, they still could fall further, if more bad news crops up.
What kind of bad news? As it stands now, deaths from the novel coronavirus haven’t risen in tandem with increased cases. Yet, if the death rate starts trending higher, it could scare off potential travelers. If the slow-and-steady increase in air traffic starts to pull back, investors may get skittish. This could push Delta shares back to prior lows.
No Slam-Dunk, But Consider DAL Stock a Cautious Buy
There’s no guarantee that Delta and its rivals see a swift recovery in the second half of 2020. But, as Covid-19 fears have dissipated (despite a rise in new cases), air travel demand could still continue to pick up through the end of the year.
And, considering that the airline’s results could handily beat its conservative guidance, lingering risks may already be priced into shares. This may mean today’s price levels are a reasonable entry point for investors.
Don’t go hog wild, but consider DAL stock a cautious buy.
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 After the Pullback, Now May Be the Time to Buy Delta 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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Yet, compared to rivals like American Airlines (NASDAQ:AAL), Delta is still in a much better place financially. But, while uncertainty continues for the struggling legacy carrier, there may be good reason why DAL stock is a buy at today’s prices. Yet, while it’s easy to focus on the negatives, these risks do not necessarily mean Delta’s financial performance can’t continue to improve.
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Yet, compared to rivals like American Airlines (NASDAQ:AAL), Delta is still in a much better place financially. Passenger Traffic Recovery and DAL Stock As InvestorPlace’s Mark Hake discussed Jun 30, passenger traffic continues to trend higher. If this scenario plays out, it’s safe to say DAL stock will head back to higher price levels.
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Yet, compared to rivals like American Airlines (NASDAQ:AAL), Delta is still in a much better place financially. InvestorPlace - Stock Market News, Stock Advice & Trading Tips After getting ahead of itself in June, Delta Air Lines (NYSE:DAL) stock has come back to earth. Passenger Traffic Recovery and DAL Stock As InvestorPlace’s Mark Hake discussed Jun 30, passenger traffic continues to trend higher.
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Yet, compared to rivals like American Airlines (NASDAQ:AAL), Delta is still in a much better place financially. But, while uncertainty continues for the struggling legacy carrier, there may be good reason why DAL stock is a buy at today’s prices. Passenger Traffic Recovery and DAL Stock As InvestorPlace’s Mark Hake discussed Jun 30, passenger traffic continues to trend higher.
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5563.0
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2020-07-09 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-2020-07-09
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nan
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nan
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What happened
The headlines surrounding the COVID-19 pandemic continue to drag on markets, quashing any lingering hopes that the airline sector will enjoy a quick turnaround. The U.S. hit a grim milestone on Thursday as the number of confirmed cases passed the 3 million mark, leading airline shares to lose altitude.
Shares of United Airlines Holdings (NASDAQ: UAL) were down 6.7% as of 11:30 a.m. EDT, while shares of American Airlines Group (NASDAQ: AAL), Delta Air Lines (NYSE: DAL), JetBlue Airways (NASDAQ: JBLU), Spirit Airlines (NYSE: SAVE), Hawaiian Holdings (NASDAQ: HA), and Allegiant Travel (NASDAQ: ALGT) were all down more than 5%.
Even the relative winners in the sector were underperforming the broader markets, with shares of Southwest Airlines (NYSE: LUV) and Alaska Air Group (NYSE: ALK) each down more than 3% apiece.
So what
Airlines have struggled due to the pandemic. Second-quarter revenue is expected to be down 90% year over year due to a fall-off in demand for travel. The sector was priced as if bankruptcies were inevitable in late March and early April, but has recovered somewhat as the U.S. economy began the slow process of reopening.
Travel demand has rebounded off the March lows, providing some reason for optimism. But in recent weeks we've seen the fragility of that rebound. On Thursday, the markets were fixated on headlines showing how dangerous the pandemic still is, with California reporting its largest one-day jump in new cases and Florida reporting a record 120 deaths over a one-day period.
Image source: Getty Images.
The rebound in travel demand has been fueled almost entirely by pent-up summer vacation demand to states such as Florida and California, which are now experiencing the highest jump in new cases.
Add it all up and there appears to be little chance there will be a quick rebound for the airlines. Rather, it appears increasingly likely there will be massive layoffs in the sector come fall.
American and United are also having troubles rebuilding their international schedules due to the pandemic. Both airlines suspended flights to Hong Kong on Thursday over concerns about a new coronavirus testing regime that could mean their crews would be subject to a 14-day quarantine.
Now what
The good news: The airlines have ample liquidity to survive a prolonged downturn, and no company in the sector is a near-term bankruptcy risk. The U.S. industry has raised nearly $50 billion in private debt and equity funding so far this year to go along with a similar amount of government funding.
The bad news: The pandemic and its aftereffects are likely to weigh on the industry well into 2021, and perhaps into 2022. A lot of sectors of the economy are going to recover before airlines.
For long-term holders who believe travel demand will eventually recover, there are likely good values among these stocks at these prices. But the momentum that was building in May and June is now gone, and the stocks are sinking as a result.
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.*
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*Stock Advisor returns as of June 2, 2020
Lou Whiteman owns shares of Delta Air Lines and Spirit Airlines. The Motley Fool owns shares of and recommends Spirit Airlines. The Motley Fool recommends 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) were down 6.7% as of 11:30 a.m. EDT, while shares of American Airlines Group (NASDAQ: AAL), Delta Air Lines (NYSE: DAL), JetBlue Airways (NASDAQ: JBLU), Spirit Airlines (NYSE: SAVE), Hawaiian Holdings (NASDAQ: HA), and Allegiant Travel (NASDAQ: ALGT) were all down more than 5%. What happened The headlines surrounding the COVID-19 pandemic continue to drag on markets, quashing any lingering hopes that the airline sector will enjoy a quick turnaround. The U.S. hit a grim milestone on Thursday as the number of confirmed cases passed the 3 million mark, leading airline shares to lose altitude.
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Shares of United Airlines Holdings (NASDAQ: UAL) were down 6.7% as of 11:30 a.m. EDT, while shares of American Airlines Group (NASDAQ: AAL), Delta Air Lines (NYSE: DAL), JetBlue Airways (NASDAQ: JBLU), Spirit Airlines (NYSE: SAVE), Hawaiian Holdings (NASDAQ: HA), and Allegiant Travel (NASDAQ: ALGT) were all down more than 5%. See the 10 stocks *Stock Advisor returns as of June 2, 2020 Lou Whiteman owns shares of Delta Air Lines and Spirit Airlines. 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) were down 6.7% as of 11:30 a.m. EDT, while shares of American Airlines Group (NASDAQ: AAL), Delta Air Lines (NYSE: DAL), JetBlue Airways (NASDAQ: JBLU), Spirit Airlines (NYSE: SAVE), Hawaiian Holdings (NASDAQ: HA), and Allegiant Travel (NASDAQ: ALGT) were all down more than 5%. See the 10 stocks *Stock Advisor returns as of June 2, 2020 Lou Whiteman owns shares of Delta Air Lines and Spirit Airlines. 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) were down 6.7% as of 11:30 a.m. EDT, while shares of American Airlines Group (NASDAQ: AAL), Delta Air Lines (NYSE: DAL), JetBlue Airways (NASDAQ: JBLU), Spirit Airlines (NYSE: SAVE), Hawaiian Holdings (NASDAQ: HA), and Allegiant Travel (NASDAQ: ALGT) were all down more than 5%. Add it all up and there appears to be little chance there will be a quick rebound for the airlines. See the 10 stocks *Stock Advisor returns as of June 2, 2020 Lou Whiteman owns shares of Delta Air Lines and Spirit Airlines.
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5564.0
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2020-07-08 00:00:00 UTC
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United Airlines May Furlough 36,000 Employees
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AAL
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https://www.nasdaq.com/articles/united-airlines-may-furlough-36000-employees-2020-07-08
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nan
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nan
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(RTTNews) - United Airlines has warned that 36,000 employees or about 45% of its U.S. workforce could be furloughed in October, due to continuing losses caused by the coronavirus pandemic and collapse in air travel, according to reports citing the company's memo sent to employees.
As per the reports, the potential furloughs include 15,000 flight attendants, 11,000 customer service staff, 5,550 maintenance employees and 2,250 pilots.
United reportedly said some of the employees would be rehired when demand recovers. But, it could take years.
United and other airlines took $25 billion in federal payroll support that prohibit the airlines to lay off, furlough or cut the pay rates of their employees until October 1.
American Airlines Group last week warned that it may have 20,000 more employees than it needs to handle reduced demand, and it could issue furlough notices, the reports said.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - United Airlines has warned that 36,000 employees or about 45% of its U.S. workforce could be furloughed in October, due to continuing losses caused by the coronavirus pandemic and collapse in air travel, according to reports citing the company's memo sent to employees. As per the reports, the potential furloughs include 15,000 flight attendants, 11,000 customer service staff, 5,550 maintenance employees and 2,250 pilots. American Airlines Group last week warned that it may have 20,000 more employees than it needs to handle reduced demand, and it could issue furlough notices, the reports said.
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(RTTNews) - United Airlines has warned that 36,000 employees or about 45% of its U.S. workforce could be furloughed in October, due to continuing losses caused by the coronavirus pandemic and collapse in air travel, according to reports citing the company's memo sent to employees. United reportedly said some of the employees would be rehired when demand recovers. United and other airlines took $25 billion in federal payroll support that prohibit the airlines to lay off, furlough or cut the pay rates of their employees until October 1.
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(RTTNews) - United Airlines has warned that 36,000 employees or about 45% of its U.S. workforce could be furloughed in October, due to continuing losses caused by the coronavirus pandemic and collapse in air travel, according to reports citing the company's memo sent to employees. United and other airlines took $25 billion in federal payroll support that prohibit the airlines to lay off, furlough or cut the pay rates of their employees until October 1. American Airlines Group last week warned that it may have 20,000 more employees than it needs to handle reduced demand, and it could issue furlough notices, the reports said.
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(RTTNews) - United Airlines has warned that 36,000 employees or about 45% of its U.S. workforce could be furloughed in October, due to continuing losses caused by the coronavirus pandemic and collapse in air travel, according to reports citing the company's memo sent to employees. As per the reports, the potential furloughs include 15,000 flight attendants, 11,000 customer service staff, 5,550 maintenance employees and 2,250 pilots. United reportedly said some of the employees would be rehired when demand recovers.
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5565.0
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2020-07-08 00:00:00 UTC
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ANALYSIS-Furloughs at legacy airlines could help low-cost carriers like Southwest
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AAL
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https://www.nasdaq.com/articles/analysis-furloughs-at-legacy-airlines-could-help-low-cost-carriers-like-southwest-2020-07
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nan
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nan
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By contract, lower salaried union workers have to be furloughed first, creating a higher per-seat-mile labor cost and a larger cost gap against low-cost carriers.
"And I imagine ticket prices will flow more or less in line with that," said Diamond Hill Capital Management analyst Blake Haxton.
United flight attendants earn under $30 an hour at the lower end of the pay scale versus nearly $70 an hour at the top end, according to 2016-2021 contractual pay charts reviewed by Reuters.
Low-cost carriers like Southwest have another advantage: their networks are more focused on domestic leisure travel, where demand is seen recovering first. Legacy carriers, on the other hand, generate more profit from business travel, which remains anemic.
"It's a perfect storm for the legacy carriers," Haxton said.
'GUT-PUNCH' FURLOUGHS
United's warning, which one labor leader called a "gut-punch" but also an "honest assessment" of the state of the industry, is the first indication of the scale of large airlines' job cuts coming Oct. 1.
That is when airlines that received a $25 billion federal payroll support package to help protect jobs through September can begin involuntary furloughs.
Unions have asked lawmakers to extend the payroll aid through March 31. Airlines are not opposed to the idea but are not actively lobbying for it, with little appetite to extend conditions tied to the first package, people familiar with the matter said.
The final number of United furloughs will depend on how demand evolves and how many employees leave voluntarily. The deadline to apply for early exit deals, which offer travel and health benefits but no cash, is July 15.
Exit packages at Southwest, which CEO Gary Kelly has called is trying to avoid its first furloughs in its 49-year history, include buyouts. The deadline is also July 15.
Delta Air Lines DAL.N is also offering buyouts. American Airlines AAL.O is expected to roll out a broader early exit program for frontline workers soon but has warned it may have as many as 20,000 more staff than needed in the fall.
Until now, tens of thousands of airline workers have taken temporary unpaid leaves, helped by a $600 weekly federal unemployment supplement that expires this month. That means more employees could return to payroll on Aug. 1 if a push in Washington for a second round of stimulus checks fails.
Furloughs will also vary by work group, with airlines seeking to avoid pilot furloughs because of the timely and costly training involved in bringing them back.
It generally takes about one year re-train 800 pilots, union officials said. If a COVID-19 vaccine is developed and demand bounces back, airlines want to be able to pick up that demand.
United said it was sending about 2,250 furlough warnings to pilots while working with the union to mitigate the final number.
(Reporting by Tracy Rucinski Editing by Nick Zieminski)
((tracy.rucinski@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines AAL.O is expected to roll out a broader early exit program for frontline workers soon but has warned it may have as many as 20,000 more staff than needed in the fall. United's warning, which one labor leader called a "gut-punch" but also an "honest assessment" of the state of the industry, is the first indication of the scale of large airlines' job cuts coming Oct. 1. Until now, tens of thousands of airline workers have taken temporary unpaid leaves, helped by a $600 weekly federal unemployment supplement that expires this month.
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American Airlines AAL.O is expected to roll out a broader early exit program for frontline workers soon but has warned it may have as many as 20,000 more staff than needed in the fall. United flight attendants earn under $30 an hour at the lower end of the pay scale versus nearly $70 an hour at the top end, according to 2016-2021 contractual pay charts reviewed by Reuters. The final number of United furloughs will depend on how demand evolves and how many employees leave voluntarily.
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American Airlines AAL.O is expected to roll out a broader early exit program for frontline workers soon but has warned it may have as many as 20,000 more staff than needed in the fall. By contract, lower salaried union workers have to be furloughed first, creating a higher per-seat-mile labor cost and a larger cost gap against low-cost carriers. Furloughs will also vary by work group, with airlines seeking to avoid pilot furloughs because of the timely and costly training involved in bringing them back.
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American Airlines AAL.O is expected to roll out a broader early exit program for frontline workers soon but has warned it may have as many as 20,000 more staff than needed in the fall. The deadline to apply for early exit deals, which offer travel and health benefits but no cash, is July 15. Furloughs will also vary by work group, with airlines seeking to avoid pilot furloughs because of the timely and costly training involved in bringing them back.
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5566.0
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2020-07-08 00:00:00 UTC
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Taxpayers Ought to Avoid American Airlines Stock
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AAL
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https://www.nasdaq.com/articles/taxpayers-ought-to-avoid-american-airlines-stock-2020-07-08
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
American Airlines (NASDAQ:AAL) recently announced that they would no longer practice social distancing on their airplanes, opting to sell every available seat where possible. Since the June 26 announcement, AAL stock has moved sideways.
Source: GagliardiPhotography / Shutterstock.com
In response to American’s decision, television personality and author Chrissy Teigen, along with Oregon Senator Jeff Merkley, called out the company for its irresponsible actions.
“@Americanair: how many Americans will die [because] you fill middle seats, [with] your customers shoulder to shoulder, hour after hour. This is incredibly irresponsible,” Merkley tweeted while flying on a packed flight.
“People eat & drink on planes & must take off masks to do so. No way you aren’t facilitating [the] spread of COVID infections.”
Teigen then responded to Merkley’s tweet with her jab at the airline.
“Not to be dramatic but American Airlines only cares about money and doesn’t care if you get sick and die,” Teigen tweeted.
It’s okay for taxpayers to bail out the airlines. Yet, for some reason, the passengers (those same taxpayers) aren’t allowed to receive a minimum amount of safety while traveling. How ridiculous is that?
Oh well, that’s what you get in a loosely-regulated Trump business environment. Profit over passenger safety.
Social Distancing and the Middle Seat
In early June, I argued that Southwest (NYSE:LUV) should keep the middle seat empty permanently.
8 Social Media Stocks to Buy or Sell
“Why doesn’t Southwest run flights that physically don’t have middle seats? Imagine how much more comfortable, not to mention healthier; the flight would be,” I wrote June 5.
“It could run flights without middle seats (more expensive) and flights with middle seats, making the added fee available for interested passengers.”
As I pointed out, Frontier Airlines has kind of figured this out, offering passengers the opportunity to pay an added fee of $39 to $89 to make sure the middle seat is empty in their specific row.
The bottom line is that passengers should be given an option. For American Airlines to fail to do so is pure greed. And don’t get me started on United Airlines’ (NASDAQ:UAL) chief communications officer’s (CCO) recent comments about how social distancing was unnecessary on flights.
What’s next? No floatation devices?
The airline industry is fleecing the American taxpayer and American Airlines is leading the deception. Don’t fall for it. Only choose to fly on airlines that respect your well-being and that of its pilots and crew.
To me, the real PR stunt is your airline claiming it cares about the safety of its passengers but disregards their feelings about flying during a pandemic.
Don’t Invest in AAL Stock
Of the four major U.S. airlines, American Airlines has the lowest Altman Z-Score. It is currently 0.57; anything below 1.81 suggests a possible bankruptcy within the next 24 months.
The highest? Southwest at 2.54.
In early June, I suggested that the act of airlines packing passengers into their planes would grow old fast.
“Parker [AAL chief executive officer] also believes that the worst is behind it. If it can get business passengers traveling again, it will be on its way to better finances. The only problem is that American’s running on 20% of their normal schedule,” I wrote June 1.
“What happens when passengers get annoyed about paying high prices just to be stuffed in a crowded, Covid-19, Petri dish? It’s not going to be pretty. I believe it’s imprudent for anyone, including Parker, to believe we are out of the woods on this crisis. Not by a long shot.”
If I were forced to put money into American — thankfully, I’m not — I would buy its bonds rather than its common stock because bankruptcy is a genuine possibility.
If you must buy American Airlines stock, at least buy when it’s in single digits to provide a better risk/reward ratio.
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 Taxpayers Ought to Avoid American Airlines Stock appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips American Airlines (NASDAQ:AAL) recently announced that they would no longer practice social distancing on their airplanes, opting to sell every available seat where possible. Since the June 26 announcement, AAL stock has moved sideways. Don’t Invest in AAL Stock Of the four major U.S. airlines, American Airlines has the lowest Altman Z-Score.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips American Airlines (NASDAQ:AAL) recently announced that they would no longer practice social distancing on their airplanes, opting to sell every available seat where possible. Since the June 26 announcement, AAL stock has moved sideways. Don’t Invest in AAL Stock Of the four major U.S. airlines, American Airlines has the lowest Altman Z-Score.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips American Airlines (NASDAQ:AAL) recently announced that they would no longer practice social distancing on their airplanes, opting to sell every available seat where possible. Don’t Invest in AAL Stock Of the four major U.S. airlines, American Airlines has the lowest Altman Z-Score. Since the June 26 announcement, AAL stock has moved sideways.
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Don’t Invest in AAL Stock Of the four major U.S. airlines, American Airlines has the lowest Altman Z-Score. InvestorPlace - Stock Market News, Stock Advice & Trading Tips American Airlines (NASDAQ:AAL) recently announced that they would no longer practice social distancing on their airplanes, opting to sell every available seat where possible. Since the June 26 announcement, AAL stock has moved sideways.
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5567.0
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2020-07-08 00:00:00 UTC
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American Airlines Abandons Unprofitable International Routes
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AAL
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https://www.nasdaq.com/articles/american-airlines-abandons-unprofitable-international-routes-2020-07-08
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nan
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nan
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This summer, American Airlines (NASDAQ: AAL) has been more aggressive than many of its U.S. peers in rebuilding capacity in the domestic market, following an unprecedented demand collapse earlier this year due to COVID-19. The carrier appears to have guessed correctly that many (though hardly all) Americans were eager to get back to normal by resuming leisure travel.
However, American Airlines isn't equally bullish about international travel. Indeed, even before COVID-19, it had been struggling in international markets, with the exception of Latin America. With long-haul travel demand likely to remain depressed for years, American Airlines announced last week that it is pulling the plug on a slew of international routes.
International routes have been a long-term challenge
Whereas the marriage of American Airlines and US Airways was fairly successful in the domestic market, it didn't fix either carrier's problems outside the U.S. The combined airline's strongest hubs are in Dallas-Fort Worth, Charlotte, and Washington, D.C. Long-haul flights are prohibited at American's Washington, D.C. hub, while Dallas-Fort Worth and Charlotte are located too far south and inland to be ideal hubs for trans-Atlantic or trans-Pacific service.
The biggest problems have been in the trans-Pacific market, where American Airlines has been losing money for several years. US Airways never flew across the Pacific, and pre-merger American was significantly weaker than United Airlines and Delta Air Lines in the region. The combined airline tried to serve Asia from three hubs: Dallas-Fort Worth, Chicago, and Los Angeles, but blistering competition led to huge losses in the latter two markets. Over the past several years, American abandoned its trans-Pacific routes from Chicago but tried to hold on in Los Angeles.
Image source: American Airlines.
American Airlines' position in the trans-Atlantic market was a little better. However, the carrier ended up competing with itself due to the structure of its route network. American Airlines felt compelled to serve many markets in Europe from both New York's JFK Airport and Philadelphia to meet strong local demand in the former market while using the latter for connecting traffic. On top of that, it tried flying nonstop to many destinations from its two strongest hubs (Dallas-Fort Worth and Charlotte) -- and, to a lesser extent, from Chicago.
American Airlines calls it a day
Last week, American Airlines announced that it will cancel 15 international routes and no longer plans to operate four others that it had intended to launch in 2020. First, it will drop its Miami-Brasilia route, which the airline had operated with its now-retired Boeing 757s.
Second, American Airlines is canceling long-haul routes from Los Angeles to Beijing, Buenos Aires, Hong Kong, Sao Paulo, and Shanghai. That will leave only flights to joint venture partner hubs in London, Tokyo, and Sydney, along with seasonal service to New Zealand.
Third, American Airlines is canceling more than a dozen noncore trans-Atlantic routes. From Charlotte, it will eliminate routes to Barcelona, Paris, and Rome. It will also ax its flights from Dallas-Fort Worth to Munich and from Miami to Milan. From Chicago, it will end service to Venice and no longer plans new routes to Budapest, Prague, and Krakow. And from Philadelphia, it will drop service to Berlin, Budapest, and Dubrovnik and cancel its plans to begin flights to Casablanca.
These moves mean that American will abandon some secondary international markets and will focus on serving Europe from New York and Philadelphia; Asia from Dallas-Fort Worth; and Latin America from Miami and Dallas-Fort Worth.
Still planning growth in Seattle
While American Airlines is planning for long-haul international capacity to be 25% below 2019 levels next summer, it intends to grow in one market: Seattle. Earlier this year, American announced an expanded partnership with Alaska Air (NYSE: ALK) to launch long-haul service from Seattle: Alaska Airlines' largest hub.
American Airlines still plans to begin flying nonstop from Seattle to Bangalore and London by next summer. What's more, it wants to transfer its Los Angeles-Shanghai route authority to Seattle, so that it can launch nonstop Seattle-Shanghai service next year.
Seattle is closer to Bangalore and Shanghai (and nearly all other points in Asia) than any other major U.S. city, enabling less circuitous routings. By tapping into the big local customer base and connecting traffic that Alaska Airlines can provide in Seattle, American may be able to carry long-haul traffic that it couldn't serve profitably from its own hubs. If these initial routes are successful, American Airlines could potentially add additional long-haul routes from Seattle in partnership with Alaska Airlines.
Of the top three U.S. airlines, American Airlines had the smallest international footprint entering 2020. Now, it appears likely to fall even further behind its rivals over the next few years. However, given its history of losses in many international markets and its need to maximize cash flow to chip away at its massive debt load, the airline had no other good options.
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 June 2, 2020
Adam Levine-Weinberg owns shares of Alaska Air Group and Delta Air Lines. The Motley Fool recommends Alaska Air Group and 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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This summer, American Airlines (NASDAQ: AAL) has been more aggressive than many of its U.S. peers in rebuilding capacity in the domestic market, following an unprecedented demand collapse earlier this year due to COVID-19. International routes have been a long-term challenge Whereas the marriage of American Airlines and US Airways was fairly successful in the domestic market, it didn't fix either carrier's problems outside the U.S. The combined airline tried to serve Asia from three hubs: Dallas-Fort Worth, Chicago, and Los Angeles, but blistering competition led to huge losses in the latter two markets.
|
This summer, American Airlines (NASDAQ: AAL) has been more aggressive than many of its U.S. peers in rebuilding capacity in the domestic market, following an unprecedented demand collapse earlier this year due to COVID-19. The combined airline's strongest hubs are in Dallas-Fort Worth, Charlotte, and Washington, D.C. Long-haul flights are prohibited at American's Washington, D.C. hub, while Dallas-Fort Worth and Charlotte are located too far south and inland to be ideal hubs for trans-Atlantic or trans-Pacific service. These moves mean that American will abandon some secondary international markets and will focus on serving Europe from New York and Philadelphia; Asia from Dallas-Fort Worth; and Latin America from Miami and Dallas-Fort Worth.
|
This summer, American Airlines (NASDAQ: AAL) has been more aggressive than many of its U.S. peers in rebuilding capacity in the domestic market, following an unprecedented demand collapse earlier this year due to COVID-19. The combined airline's strongest hubs are in Dallas-Fort Worth, Charlotte, and Washington, D.C. Long-haul flights are prohibited at American's Washington, D.C. hub, while Dallas-Fort Worth and Charlotte are located too far south and inland to be ideal hubs for trans-Atlantic or trans-Pacific service. American Airlines calls it a day Last week, American Airlines announced that it will cancel 15 international routes and no longer plans to operate four others that it had intended to launch in 2020.
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This summer, American Airlines (NASDAQ: AAL) has been more aggressive than many of its U.S. peers in rebuilding capacity in the domestic market, following an unprecedented demand collapse earlier this year due to COVID-19. The combined airline's strongest hubs are in Dallas-Fort Worth, Charlotte, and Washington, D.C. Long-haul flights are prohibited at American's Washington, D.C. hub, while Dallas-Fort Worth and Charlotte are located too far south and inland to be ideal hubs for trans-Atlantic or trans-Pacific service. American Airlines calls it a day Last week, American Airlines announced that it will cancel 15 international routes and no longer plans to operate four others that it had intended to launch in 2020.
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5568.0
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2020-07-07 00:00:00 UTC
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S&P 500 Movers: UAL, ROL
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AAL
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https://www.nasdaq.com/articles/sp-500-movers%3A-ual-rol-2020-07-07
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nan
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nan
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In early trading on Tuesday, shares of Rollins, topped the list of the day's best performing components of the S&P 500 index, trading up 6.0%. Year to date, Rollins registers a 36.6% gain.
And the worst performing S&P 500 component thus far on the day is United Airlines Holdings, trading down 6.3%. United Airlines Holdings Inc is lower by about 62.5% looking at the year to date performance.
Two other components making moves today are American Airlines Group, trading down 5.2%, and Air Products & Chemicals, trading up 3.2% on the day.
VIDEO: S&P 500 Movers: UAL, ROL
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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And the worst performing S&P 500 component thus far on the day is United Airlines Holdings, trading down 6.3%. United Airlines Holdings Inc is lower by about 62.5% looking at the year to date performance. VIDEO: S&P 500 Movers: UAL, ROL 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 early trading on Tuesday, shares of Rollins, topped the list of the day's best performing components of the S&P 500 index, trading up 6.0%. And the worst performing S&P 500 component thus far on the day is United Airlines Holdings, trading down 6.3%. United Airlines Holdings Inc is lower by about 62.5% looking at the year to date performance.
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In early trading on Tuesday, shares of Rollins, topped the list of the day's best performing components of the S&P 500 index, trading up 6.0%. And the worst performing S&P 500 component thus far on the day is United Airlines Holdings, trading down 6.3%. Two other components making moves today are American Airlines Group, trading down 5.2%, and Air Products & Chemicals, trading up 3.2% on the day.
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And the worst performing S&P 500 component thus far on the day is United Airlines Holdings, trading down 6.3%. United Airlines Holdings Inc is lower by about 62.5% looking at the year to date performance. VIDEO: S&P 500 Movers: UAL, ROL 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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5569.0
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2020-07-07 00:00:00 UTC
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U.S. stock futures ease after five-day run as virus worries weigh
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AAL
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https://www.nasdaq.com/articles/u.s.-stock-futures-ease-after-five-day-run-as-virus-worries-weigh-2020-07-07
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nan
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nan
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By C Nivedita
July 7 (Reuters) - U.S. stock index futures slipped on Tuesday following the benchmark S&P 500 and Nasdaq's five-day rally, as investors weighed the risks to the economy from tens of thousands of new coronavirus cases nationwide.
Florida's greater Miami area became the latest U.S. coronavirus hot spot to roll back its reopening while Texas registered an all-time high in the number of people hospitalized at any one moment with COVID-19 for the eight straight day.
Travel-related stocks, which were among the hardest hit during lockdowns, fell in premarket trading. United Airlines Holdings Inc UAL.O and American Airlines Group Inc AAL.O were down 3% and 2.8%, respectively.
Royal Caribbean Group RCL.N and Norwegian Cruise Line Holdings Ltd NCLH.N also dropped about 3% each, even as they announced a joint task force to help develop safety standards for restarting their businesses.
Alarming spread of the virus could setback the business activity which is attempting to regain momentum after an initial round of lockdowns pushed the economy into a recession in February.
A surprise expansion in the U.S. service sector and a record job additions in June are among the slate of upbeat data recently that have bolstered views that an economic recovery is underway, helping the Nasdaq close at a record level on Monday and pushing S&P 500 about 45% from its March lows.
At 6:15 a.m. ET, Dow e-minis 1YMcv1 were down 287 points, or 1.1%. S&P 500 e-minis EScv1 were down 28.5 points, or 0.9% and Nasdaq 100 e-minis NQcv1 were down 52.75 points, or 0.5%.
(Reporting by C Nivedita and Medha Singh in Bengaluru; Editing by Maju Samuel)
((C.Nivedita@thomsonreuters.com; within the U.S. +1 646 223 8780, outside the U.S. +91 80 6182 2626; Twitter: @NivCholayil;))
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 Inc UAL.O and American Airlines Group Inc AAL.O were down 3% and 2.8%, respectively. By C Nivedita July 7 (Reuters) - U.S. stock index futures slipped on Tuesday following the benchmark S&P 500 and Nasdaq's five-day rally, as investors weighed the risks to the economy from tens of thousands of new coronavirus cases nationwide. Florida's greater Miami area became the latest U.S. coronavirus hot spot to roll back its reopening while Texas registered an all-time high in the number of people hospitalized at any one moment with COVID-19 for the eight straight day.
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United Airlines Holdings Inc UAL.O and American Airlines Group Inc AAL.O were down 3% and 2.8%, respectively. Alarming spread of the virus could setback the business activity which is attempting to regain momentum after an initial round of lockdowns pushed the economy into a recession in February. S&P 500 e-minis EScv1 were down 28.5 points, or 0.9% and Nasdaq 100 e-minis NQcv1 were down 52.75 points, or 0.5%.
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United Airlines Holdings Inc UAL.O and American Airlines Group Inc AAL.O were down 3% and 2.8%, respectively. By C Nivedita July 7 (Reuters) - U.S. stock index futures slipped on Tuesday following the benchmark S&P 500 and Nasdaq's five-day rally, as investors weighed the risks to the economy from tens of thousands of new coronavirus cases nationwide. A surprise expansion in the U.S. service sector and a record job additions in June are among the slate of upbeat data recently that have bolstered views that an economic recovery is underway, helping the Nasdaq close at a record level on Monday and pushing S&P 500 about 45% from its March lows.
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United Airlines Holdings Inc UAL.O and American Airlines Group Inc AAL.O were down 3% and 2.8%, respectively. By C Nivedita July 7 (Reuters) - U.S. stock index futures slipped on Tuesday following the benchmark S&P 500 and Nasdaq's five-day rally, as investors weighed the risks to the economy from tens of thousands of new coronavirus cases nationwide. Florida's greater Miami area became the latest U.S. coronavirus hot spot to roll back its reopening while Texas registered an all-time high in the number of people hospitalized at any one moment with COVID-19 for the eight straight day.
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5570.0
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2020-07-07 00:00:00 UTC
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Wall Street headed lower after five-day run on fears over virus surge
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AAL
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https://www.nasdaq.com/articles/wall-street-headed-lower-after-five-day-run-on-fears-over-virus-surge-2020-07-07
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nan
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nan
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By C Nivedita
July 7 (Reuters) - Wall Street's main indexes looked set to open lower on Tuesday following the benchmark S&P 500's longest streak of gains this year as investors weighed the risks to the economy from tens of thousands of new coronavirus cases nationwide.
Florida's greater Miami area became the latest U.S. coronavirus hot spot to roll back its reopening while Texas registered an all-time high in the number of people hospitalized at any one moment with COVID-19 for the eight straight day.
Energy stocks including Occidental Petroleum Corp OXY.N and Concho Resources CXO.N dropped about 2% on worries over fuel demand. O/R
It looks like it will be a slight retracement of Monday and Thursday's impressive gains, said Ryan Giannotto, director of research at GraniteShares ETFs in New York.
U.S. stocks have climbed despite an alarming rise in coronavirus cases as a surprise expansion in the U.S. service sector and a record job additions in June are among the slate of upbeat data recently that have bolstered views that an economic recovery is underway.
The benchmark S&P 500 .SPX and Nasdaq wrapped up five straight sessions of gains on Monday, with the latter closing at a record level.
The conundrum of growing cases and rising stock prices indicates that the liquidity from monetary stimulus is overriding fears over the immediate impact of coronavirus on the economy, Giannotto said.
At 8:10 a.m. ET, Dow e-minis 1YMcv1 were down 205 points, or 0.78%. S&P 500 e-minis EScv1 were down 20.5 points, or 0.65% and Nasdaq 100 e-minis NQcv1 were down 33 points, or 0.31%.
Novavax Inc NVAX.O jumped 33.8% as the U.S. government awarded $1.6 billion to the drugmaker to cover testing, commercialization and manufacturing of a potential coronavirus vaccine in the United States.
Travel-related stocks, which were among the hardest hit during lockdowns, fell. United Airlines Holdings Inc UAL.O and American Airlines Group Inc AAL.O were down 2.6% and 2.3%, respectively.
Royal Caribbean Group RCL.N and Norwegian Cruise Line Holdings Ltd NCLH.N also dropped about 1% each, even as they announced a joint task force to help develop safety standards for restarting their businesses.
(Reporting by C Nivedita and Medha Singh in Bengaluru; Editing by Maju Samuel)
((C.Nivedita@thomsonreuters.com; within the U.S. +1 646 223 8780, outside the U.S. +91 80 6182 2626; Twitter: @NivCholayil;))
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 Inc UAL.O and American Airlines Group Inc AAL.O were down 2.6% and 2.3%, respectively. By C Nivedita July 7 (Reuters) - Wall Street's main indexes looked set to open lower on Tuesday following the benchmark S&P 500's longest streak of gains this year as investors weighed the risks to the economy from tens of thousands of new coronavirus cases nationwide. Florida's greater Miami area became the latest U.S. coronavirus hot spot to roll back its reopening while Texas registered an all-time high in the number of people hospitalized at any one moment with COVID-19 for the eight straight day.
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United Airlines Holdings Inc UAL.O and American Airlines Group Inc AAL.O were down 2.6% and 2.3%, respectively. U.S. stocks have climbed despite an alarming rise in coronavirus cases as a surprise expansion in the U.S. service sector and a record job additions in June are among the slate of upbeat data recently that have bolstered views that an economic recovery is underway. S&P 500 e-minis EScv1 were down 20.5 points, or 0.65% and Nasdaq 100 e-minis NQcv1 were down 33 points, or 0.31%.
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United Airlines Holdings Inc UAL.O and American Airlines Group Inc AAL.O were down 2.6% and 2.3%, respectively. By C Nivedita July 7 (Reuters) - Wall Street's main indexes looked set to open lower on Tuesday following the benchmark S&P 500's longest streak of gains this year as investors weighed the risks to the economy from tens of thousands of new coronavirus cases nationwide. U.S. stocks have climbed despite an alarming rise in coronavirus cases as a surprise expansion in the U.S. service sector and a record job additions in June are among the slate of upbeat data recently that have bolstered views that an economic recovery is underway.
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United Airlines Holdings Inc UAL.O and American Airlines Group Inc AAL.O were down 2.6% and 2.3%, respectively. By C Nivedita July 7 (Reuters) - Wall Street's main indexes looked set to open lower on Tuesday following the benchmark S&P 500's longest streak of gains this year as investors weighed the risks to the economy from tens of thousands of new coronavirus cases nationwide. Florida's greater Miami area became the latest U.S. coronavirus hot spot to roll back its reopening while Texas registered an all-time high in the number of people hospitalized at any one moment with COVID-19 for the eight straight day.
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5571.0
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2020-07-07 00:00:00 UTC
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EXCLUSIVE-Chile putting mine workers' health over copper production, minister says
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AAL
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https://www.nasdaq.com/articles/exclusive-chile-putting-mine-workers-health-over-copper-production-minister-says-2020-07
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nan
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nan
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By Fabian Cambero and Aislinn Laing
SANTIAGO, July 7 (Reuters) - Chile's mines minister said on Tuesday there were "no silver bullets" to help the industry weather the coronavirus pandemic, but insisted the world's biggest copper producer was prioritizing workers' health to avoid the spread of infections that could further harm operations.
Baldo Prokurica told Reuters that Chile's copper industry had kept the contagion rate to just 2% with a strict testing regime and by keeping half of its more than 200,000-strong workforce at home.
"A company that does not take care of its workers will not be able to work, if workers get sick," he said in a video interview. "If we were prioritising production, companies would have 100% of workers on the job."
Neighboring Peru, the No. 2 copper producer, opted to shut down all industry for 100 days but still had the world's fifth-highest case rate, he said, while Uruguay had maintained all productive work and reported just 29 deaths from COVID-19.
Leading copper miners in Chile, including state-owned Codelco, BHP Group Ltd BHP.AX and Anglo American Plc AAL.L have maintained and even increased production until now. But as coronavirus cases have recently spiked with at least 10 confirmed deaths, the miners have altered shift patterns, suspended upgrades and smelter operations in a bid to stop the spread.
Some unions and local leaders have called for mines in the worst-hit areas to shut down altogether. Prokurica said nothing could be ruled out.
"There's no silver bullet with these things," he said. "No one in the world can say what is going to happen. Venturing an opinion on that puts you in a position where frankly there is a very high possibility you end up being wrong."
Chile's copper commission, Cochilco, has predicted a 200,000 to 240,000-tonne drop in 2020 production. Prokurica said that projection held only if cases start to decline.
"Everything will depend on how the pandemic evolves," he said. "If cases increase, that will generate a more serious outlook."
He said Tuesday's copper price of $2.77 per pound - from an annual low of $2.09 on March 23 - was a more accurate reflection of the market's supply-demand dynamics after many months of distortion driven by the U.S.-China trade war and collapse in the price of petrol.
“We’ve had one thing after another and also that means that the markets are moving towards stabilization," he said. "We feel positive and believe that that price should remain as such because one way or another you're not going to see more copper being produced.”
Last month, Prokurica underlined the importance of finding "balance" between keeping mining - a major earner for the country's battered economy - on its feet and safeguarding the health of workers.
Addressing recent accusations by Chile’s Federation of Copper Workers (FTC) that the government had prioritized copper output over health, Prokurica said it was not in the interest of mining companies to risk the health of their very specialized workers.
"President Sebastian Piñera, I as a minister and also the companies and workers know that the first priority is the life and health of workers," he said. "Nothing is more important than health."
(Reporting by Fabian Cambero and Aislinn Laing in Santiago Writing by Aislinn Laing Editing by Matthew Lewis)
((Aislinn.Laing@thomsonreuters.com; +56 223704250;))
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 copper miners in Chile, including state-owned Codelco, BHP Group Ltd BHP.AX and Anglo American Plc AAL.L have maintained and even increased production until now. By Fabian Cambero and Aislinn Laing SANTIAGO, July 7 (Reuters) - Chile's mines minister said on Tuesday there were "no silver bullets" to help the industry weather the coronavirus pandemic, but insisted the world's biggest copper producer was prioritizing workers' health to avoid the spread of infections that could further harm operations. But as coronavirus cases have recently spiked with at least 10 confirmed deaths, the miners have altered shift patterns, suspended upgrades and smelter operations in a bid to stop the spread.
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Leading copper miners in Chile, including state-owned Codelco, BHP Group Ltd BHP.AX and Anglo American Plc AAL.L have maintained and even increased production until now. By Fabian Cambero and Aislinn Laing SANTIAGO, July 7 (Reuters) - Chile's mines minister said on Tuesday there were "no silver bullets" to help the industry weather the coronavirus pandemic, but insisted the world's biggest copper producer was prioritizing workers' health to avoid the spread of infections that could further harm operations. Baldo Prokurica told Reuters that Chile's copper industry had kept the contagion rate to just 2% with a strict testing regime and by keeping half of its more than 200,000-strong workforce at home.
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Leading copper miners in Chile, including state-owned Codelco, BHP Group Ltd BHP.AX and Anglo American Plc AAL.L have maintained and even increased production until now. By Fabian Cambero and Aislinn Laing SANTIAGO, July 7 (Reuters) - Chile's mines minister said on Tuesday there were "no silver bullets" to help the industry weather the coronavirus pandemic, but insisted the world's biggest copper producer was prioritizing workers' health to avoid the spread of infections that could further harm operations. "We feel positive and believe that that price should remain as such because one way or another you're not going to see more copper being produced.” Last month, Prokurica underlined the importance of finding "balance" between keeping mining - a major earner for the country's battered economy - on its feet and safeguarding the health of workers.
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Leading copper miners in Chile, including state-owned Codelco, BHP Group Ltd BHP.AX and Anglo American Plc AAL.L have maintained and even increased production until now. By Fabian Cambero and Aislinn Laing SANTIAGO, July 7 (Reuters) - Chile's mines minister said on Tuesday there were "no silver bullets" to help the industry weather the coronavirus pandemic, but insisted the world's biggest copper producer was prioritizing workers' health to avoid the spread of infections that could further harm operations. 2 copper producer, opted to shut down all industry for 100 days but still had the world's fifth-highest case rate, he said, while Uruguay had maintained all productive work and reported just 29 deaths from COVID-19.
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5572.0
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2020-07-07 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-2020-07-07
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nan
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nan
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What happened
United Airlines Holdings (NASDAQ: UAL) is seeing new bookings decline as COVID-19 cases spike, and that's putting pressure on airline stocks on Tuesday.
Shares of United and American Airlines Group (NASDAQ: AAL) each traded down 5% as of noon EDT, while shares of Spirit Airlines (NYSE: SAVE) are down 4%. A number of other airline stocks, including Delta Air Lines (NYSE: DAL), Southwest Airlines (NYSE: LUV), Alaska Air Group (NYSE: ALK), and JetBlue Airways (NASDAQ: JBLU), were all down more than 2%.
So what
Airline stocks were hit hard by the initial wave of the coronavirus pandemic, with travel demand seemingly bottoming out in late March/early April. We've seen a resurgence in demand in the months since, which has caused United and other airlines to add flights heading into late summer.
Image source: Getty Images.
But COVID-19 cases are also on the rise in many areas of the country, and that is beginning to eat into demand. United told employees Monday the booking momentum has faded. The airline's Newark, New Jersey, hub has been hit particularly hard after New York, New Jersey, and Connecticut imposed a 14-day quarantine on visitors from parts of the country where the pandemic is growing worse.
The airlines were prohibited from laying off staff before Sept. 30 as a condition of receiving relief funds through the Coronavirus Aid, Relief, and Economic Security (CARES) Act stimulus package, but United has warned employees it is likely to shrink significantly this fall. Other airlines, including Delta and Southwest, have also said that, absent a substantial uptick in demand, they are going to have to reduce the size of their operations.
The airlines are getting added help from the government to weather an extended downturn. U.S. Treasury Secretary Steven Mnuchin said Tuesday that Delta, United, Southwest, JetBlue, and Alaska have all signed letters of intent to receive loans as part of the CARES Act.
Last week several airlines, including American and Spirit, were the first to finalize deals to receive additional government funding.
Now what
The assumption for some time now has been that the airlines will be facing a slow, multiyear recovery. A bout of optimism in May and early June as airlines made plans to resume some service seemingly caused some investors to believe the timetable might be moving up, but these latest moves indicate the airlines still see a long, tough climb ahead.
The good news is the sector has done a solid job fortifying balance sheets, with the U.S. industry raising nearly $50 billion in private liquidity to go along with a similar amount in government funds. Even if demand is waning, the airlines are well-positioned to survive for an extended period without ending up in bankruptcy, though it will likely mean layoffs and more schedule contraction.
For investors interested in buying in, be warned that other sectors are likely to recover faster than air travel. If you do want to buy, stick with the top operators with the best chance of remaining airborne no matter what challenges lie ahead.
10 stocks we like better than JetBlue Airways
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Lou Whiteman owns shares of Delta Air Lines and Spirit Airlines. The Motley Fool owns shares of and recommends Spirit Airlines. The Motley Fool recommends 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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Shares of United and American Airlines Group (NASDAQ: AAL) each traded down 5% as of noon EDT, while shares of Spirit Airlines (NYSE: SAVE) are down 4%. So what Airline stocks were hit hard by the initial wave of the coronavirus pandemic, with travel demand seemingly bottoming out in late March/early April. U.S. Treasury Secretary Steven Mnuchin said Tuesday that Delta, United, Southwest, JetBlue, and Alaska have all signed letters of intent to receive loans as part of the CARES Act.
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Shares of United and American Airlines Group (NASDAQ: AAL) each traded down 5% as of noon EDT, while shares of Spirit Airlines (NYSE: SAVE) are down 4%. A number of other airline stocks, including Delta Air Lines (NYSE: DAL), Southwest Airlines (NYSE: LUV), Alaska Air Group (NYSE: ALK), and JetBlue Airways (NASDAQ: JBLU), were all down more than 2%. See the 10 stocks *Stock Advisor returns as of June 2, 2020 Lou Whiteman owns shares of Delta Air Lines and Spirit Airlines.
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Shares of United and American Airlines Group (NASDAQ: AAL) each traded down 5% as of noon EDT, while shares of Spirit Airlines (NYSE: SAVE) are down 4%. What happened United Airlines Holdings (NASDAQ: UAL) is seeing new bookings decline as COVID-19 cases spike, and that's putting pressure on airline stocks on Tuesday. A number of other airline stocks, including Delta Air Lines (NYSE: DAL), Southwest Airlines (NYSE: LUV), Alaska Air Group (NYSE: ALK), and JetBlue Airways (NASDAQ: JBLU), were all down more than 2%.
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Shares of United and American Airlines Group (NASDAQ: AAL) each traded down 5% as of noon EDT, while shares of Spirit Airlines (NYSE: SAVE) are down 4%. So what Airline stocks were hit hard by the initial wave of the coronavirus pandemic, with travel demand seemingly bottoming out in late March/early April. That's right -- they think these 10 stocks are even better buys.
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5573.0
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2020-07-07 00:00:00 UTC
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Stock Market Today: Nasdaq's 5-Day Win Streak Snapped
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AAL
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https://www.nasdaq.com/articles/stock-market-today%3A-nasdaqs-5-day-win-streak-snapped
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nan
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Wall Street’s underlying worries about the resilience of the economic recovery were given room to roam Tuesday thanks to a dearth of significant new positive data.
COVID-related hospitalizations are rising across much of the Sun Belt, and yesterday once again saw a new record rolling seven-day average of daily new cases. That caused economically sensitive stocks such as American Airlines (AAL, -7.0%) and Carnival (CCL, -6.6%) to lead the market lower today.
SEE MORE The Kiplinger Dividend 15: Our Favorite Dividend-Paying Stocks
The tech-heavy Nasdaq Composite finally suffered a loss after five consecutive up days, closing 0.9% lower to 10,343. The S&P 500 dipped 1.1% to 3,145, and the Dow Jones Industrial Average was the worst of the major blue-chip indices, closing 1.5% down to 25,890. The small-cap Russell 2000 declined 1.9% to finish Tuesday's session at 1,416.
There were a handful of bright spots, however.
Walmart (WMT, +6.8%), for instance, leaped on news that it will launch an Amazon Prime competitor subscription service later this month for $98 annually. The service reportedly will include perks such as same-day grocery delivery and discounts on fuel.
And Novavax (NVAX, +31.6%) roared ahead after announcing the federal government is awarding the biotech company $1.6 billion to help speed up development of a COVID-19 vaccine.
A Sideways Summer?
Every rally needs the occasional breather, and there’s little in Tuesday’s pause to signal deeper declines ahead. But some on Wall Street are increasingly of the mind that we could be in for a sideways summer following Q2’s rapid stock-market recovery and amid a batch of fresh question marks about America’s ability to fend off the coronavirus.
The fall elections could be trouble, too.
“Markets tend to be volatile ahead of elections because of the uncertainty around possible policy changes,” Ryan Detrick, senior market strategist at LPL Financial, writes in a recent note. "In this election, the stakes are particularly high for corporate America because a takeover of the Senate by Democrats and a possible Biden victory reportedly may lead to an increase in the corporate tax rate from 21% to 28% and unwind the corporate earnings boost the 2017 Tax Cut and Jobs Act delivered."
SEE MORE The Best AI Stocks to Buy for 2021 and Beyond
Investors looking to dampen at least a little of the volatility until the next bull run can find strength in numbers; after all, 100 stocks are far less likely to take you on a wild ride than one.
You can get that kind of diversification for dirt cheap via these eight low-cost index funds. And you can’t really have a discussion about inexpensive market exposure without mentioning Vanguard, which has a number of indexed and active products alike to help you harness the market’s next leg up.
However, if you’re looking to get tactical, explore the many actively managed options from Fidelity. The fund provider offers many options that tap into growth, whether it’s in U.S. large caps, lesser-known small firms or corporations across the globe. Here, we explore 15 noteworthy Fidelity mutual funds with no minimum investment requirement:
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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That caused economically sensitive stocks such as American Airlines (AAL, -7.0%) and Carnival (CCL, -6.6%) to lead the market lower today. Wall Street’s underlying worries about the resilience of the economic recovery were given room to roam Tuesday thanks to a dearth of significant new positive data. SEE MORE The Kiplinger Dividend 15: Our Favorite Dividend-Paying Stocks The tech-heavy Nasdaq Composite finally suffered a loss after five consecutive up days, closing 0.9% lower to 10,343.
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That caused economically sensitive stocks such as American Airlines (AAL, -7.0%) and Carnival (CCL, -6.6%) to lead the market lower today. But some on Wall Street are increasingly of the mind that we could be in for a sideways summer following Q2’s rapid stock-market recovery and amid a batch of fresh question marks about America’s ability to fend off the coronavirus. "In this election, the stakes are particularly high for corporate America because a takeover of the Senate by Democrats and a possible Biden victory reportedly may lead to an increase in the corporate tax rate from 21% to 28% and unwind the corporate earnings boost the 2017 Tax Cut and Jobs Act delivered."
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That caused economically sensitive stocks such as American Airlines (AAL, -7.0%) and Carnival (CCL, -6.6%) to lead the market lower today. But some on Wall Street are increasingly of the mind that we could be in for a sideways summer following Q2’s rapid stock-market recovery and amid a batch of fresh question marks about America’s ability to fend off the coronavirus. “Markets tend to be volatile ahead of elections because of the uncertainty around possible policy changes,” Ryan Detrick, senior market strategist at LPL Financial, writes in a recent note.
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That caused economically sensitive stocks such as American Airlines (AAL, -7.0%) and Carnival (CCL, -6.6%) to lead the market lower today. COVID-related hospitalizations are rising across much of the Sun Belt, and yesterday once again saw a new record rolling seven-day average of daily new cases. But some on Wall Street are increasingly of the mind that we could be in for a sideways summer following Q2’s rapid stock-market recovery and amid a batch of fresh question marks about America’s ability to fend off the coronavirus.
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5574.0
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2020-07-07 00:00:00 UTC
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Stock Market Suffers Late Drop as Airlines Lose Altitude
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AAL
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https://www.nasdaq.com/articles/stock-market-suffers-late-drop-as-airlines-lose-altitude-2020-07-07
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nan
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nan
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Tuesday finally brought an end to what had been an extremely strong run for the stock market in recent sessions. The Dow Jones Industrial Average (DJINDICES: ^DJI) had been down all day, but reversals in the S&P 500 (SNPINDEX: ^GSPC) and Nasdaq Composite led to their losing ground as well.
Today's stock market
INDEX
PERCENTAGE CHANGE
POINT CHANGE
Dow
(1.51%)
(397)
S&P 500
(1.08%)
(34)
Nasdaq Composite
(0.86%)
(90)
Data source: Yahoo! Finance.
Travel-related stocks were among those that fell the most on Tuesday, and airline stocks in particular were under pressure. Even though airlines have gotten much-needed financial assistance from the federal government, it's come at a price -- and investors might not like what they have to pay even if the industry bounces back from what could be a coming second wave of COVID-19 cases.
United worries about the coronavirus
United Airlines Holdings (NASDAQ: UAL) fell the worst of the major U.S. carriers, declining almost 8%. The airline rebounded strongly when concerns about the pandemic subsided, but now that they're back, United is seeing signs that it's affecting its business.
United told its employees on Tuesday that there's a significant chance that the rebound in travel could reverse itself. Already, the company is seeing travel bookings weaken. One big reason is the emergence of state measures aimed at residents of other states, as state governments across the tri-state New York metropolitan area are looking to force travelers coming from areas with high numbers of new COVID-19 cases to quarantine.
Image source: United.
To cut costs, United is asking workers to take voluntary severance packages. However, the airline had hoped more of its employees would take advantage of the opportunity. As a result, employees might have to take furloughs, and United might even consider layoffs once it's allowed to impose such measures after Sept. 30.
Financial assistance can only last so long
Meanwhile, several airlines have worked on negotiating final terms for the aid packages they're getting from the U.S. Treasury. American Airlines Group (NASDAQ: AAL) got its deal done last week, and Delta Air Lines (NYSE: DAL) and Southwest Airlines (NYSE: LUV) are considering whether they'll need to tap into the loans that the federal government has made available.
Some airlines have been reluctant to accept aid, in large part because it limits their ability to react operationally to quickly changing industry conditions. In addition to prohibiting layoffs through the end of September, airlines that take loans have to offer the government an equity stake through warrants and lose the ability to fully control what they pay their corporate executives.
There's also hope that passengers will keep flying. More than 755,000 people went through TSA airport security checkpoints on July 6, with counts topping 700,000 in four of the past five days. That's still far below the 2.7 million to 2.8 million passengers who traveled on the first Sunday and Monday of July last year.
The way that airline stocks are behaving shows the importance of solving the coronavirus crisis as quickly as possible. Until the pandemic gets under control, major swaths of the global economy will remain at risk.
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 June 2, 2020
Dan Caplinger has no position in any of the stocks mentioned. 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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American Airlines Group (NASDAQ: AAL) got its deal done last week, and Delta Air Lines (NYSE: DAL) and Southwest Airlines (NYSE: LUV) are considering whether they'll need to tap into the loans that the federal government has made available. The Dow Jones Industrial Average (DJINDICES: ^DJI) had been down all day, but reversals in the S&P 500 (SNPINDEX: ^GSPC) and Nasdaq Composite led to their losing ground as well. Some airlines have been reluctant to accept aid, in large part because it limits their ability to react operationally to quickly changing industry conditions.
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American Airlines Group (NASDAQ: AAL) got its deal done last week, and Delta Air Lines (NYSE: DAL) and Southwest Airlines (NYSE: LUV) are considering whether they'll need to tap into the loans that the federal government has made available. United worries about the coronavirus United Airlines Holdings (NASDAQ: UAL) fell the worst of the major U.S. carriers, declining almost 8%. The Motley Fool recommends Delta Air Lines and Southwest Airlines.
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American Airlines Group (NASDAQ: AAL) got its deal done last week, and Delta Air Lines (NYSE: DAL) and Southwest Airlines (NYSE: LUV) are considering whether they'll need to tap into the loans that the federal government has made available. United worries about the coronavirus United Airlines Holdings (NASDAQ: UAL) fell the worst of the major U.S. carriers, declining almost 8%. 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) got its deal done last week, and Delta Air Lines (NYSE: DAL) and Southwest Airlines (NYSE: LUV) are considering whether they'll need to tap into the loans that the federal government has made available. Travel-related stocks were among those that fell the most on Tuesday, and airline stocks in particular were under pressure. United worries about the coronavirus United Airlines Holdings (NASDAQ: UAL) fell the worst of the major U.S. carriers, declining almost 8%.
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5575.0
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2020-07-06 00:00:00 UTC
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Sorry Warren Buffett, Delta Stock Is Now a Buy
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https://www.nasdaq.com/articles/sorry-warren-buffett-delta-stock-is-now-a-buy-2020-07-06
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Many believe the world has changed due to the novel coronavirus. But within one of the market’s most impacted industries, Delta Air Lines (NYSE:DAL) is poised to weather today’s seemingly impossible conditions. Let’s look at what’s happening off and on the DAL stock price chart and how one risk-adjusted solution can help investors profit from a sunnier, long-term forecast.
Source: NextNewMedia / Shutterstock.com
Much to our collective sorrow, the pandemic’s impact on the socioeconomic fabric of the United States is still very much alive and well. But it’s also true that since the pandemic’s outbreak, some well-positioned companies have come out on top.
Amazon (NASDAQ:AMZN), Zoom Video (NASDAQ:ZM), Netflix (NASDAQ:NFLX), Peloton (NASDAQ:PTON) and Teladoc (NYSE:TDOC) are among those companies benefiting. How? They all offer “essential” services in our new normal. Each of these stocks has also enriched investors as shares have hit all-time highs. They are also leading the broader averages to record-breaking gains.
The same can’t be said for the airline industry and DAL stock. It’s no surprise of course. At the height of the pandemic’s first wave, airline traffic collapsed. But airlines remain essential services despite the obviously meaningful disruption.
Which Airlines Will Survive?
That’s not to say all airlines will get past the coronavirus. Some won’t. There are roughly 700 carriers globally. And if we’re to believe the International Air Transport Association, half of all airlines could go bankrupt due to the fallout from Covid-19.
7 American Manufacturing Stocks to Buy Before Recovery
Still, and with no disrespect to Warren Buffett’s apocalyptic warning, DAL stock is in strong position to not only survive but thrive longer-term.
The latest sign Delta will take off again is the company’s move last week to amend its revolving credit line. According to Reuters, the amended facility gives Delta access to a $1.33 billion three-year facility. Of that total amount, $1.25 billion has been extended to April 2022, giving the company an extra year. Plus, the deal gives DAL a $216 million standby letter of credit facility. This also matures in April 2022.
DAL Stock Weekly Price Chart
Source: Chart by TradingView
So, who are investors to believe when it comes to Delta? I believe it’s finally time to put some trust into Delta’s price chart. That wasn’t the case a month ago as shares soared higher on upbeat American Airlines (NASDAQ:AAL) news.
In early June I warned of a likely pullback as an overbought situation in Delta tested key resistance on the weekly price chart. The advice proved correct. But an even deeper-than-anticipated correction is now offering investors an attractive spot to pick up solid technical value.
Shares of Delta have currently retraced 50% of the 113% return gained off the stock’s May bear-market low. The challenge looks healthier given it puts shares back near the high of Delta’s hammer doji bottoming candle. It is also supported by a bullish oversold stochastics crossover setup.
How to Trade Delta Air Lines Stock
In partial deference to Warren Buffett, I’d suggest buying the September $30/$35 bull call spread rather than making Delta a core stock holding.
Bottom line, this type of spread strategy allows for leveraged returns should a rally in Delta take hold. Smartly, it also contains and reduces risk in the event shares continue to falter. And if the stock crashed similar to this spring? This strategy’s solid defensive characteristics puts investors in a much stronger position to buy when others are fearful. And who knows, maybe even the Oracle of Omaha could respect that decision.
Investment accounts under Christopher Tyler’s management do not own positions in any securities mentioned in this article. The information offered is based upon Christopher Tyler’s observations and strictly intended for educational purposes only; the use of which is the responsibility of the individual. For additional market insights and related musings, follow Chris on Twitter @Options_CAT and StockTwits.
The post Sorry Warren Buffett, Delta Stock Is Now a Buy 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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That wasn’t the case a month ago as shares soared higher on upbeat American Airlines (NASDAQ:AAL) news. But within one of the market’s most impacted industries, Delta Air Lines (NYSE:DAL) is poised to weather today’s seemingly impossible conditions. In early June I warned of a likely pullback as an overbought situation in Delta tested key resistance on the weekly price chart.
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That wasn’t the case a month ago as shares soared higher on upbeat American Airlines (NASDAQ:AAL) news. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Many believe the world has changed due to the novel coronavirus. But within one of the market’s most impacted industries, Delta Air Lines (NYSE:DAL) is poised to weather today’s seemingly impossible conditions.
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That wasn’t the case a month ago as shares soared higher on upbeat American Airlines (NASDAQ:AAL) news. 7 American Manufacturing Stocks to Buy Before Recovery Still, and with no disrespect to Warren Buffett’s apocalyptic warning, DAL stock is in strong position to not only survive but thrive longer-term. DAL Stock Weekly Price Chart Source: Chart by TradingView So, who are investors to believe when it comes to Delta?
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That wasn’t the case a month ago as shares soared higher on upbeat American Airlines (NASDAQ:AAL) news. The same can’t be said for the airline industry and DAL stock. Which Airlines Will Survive?
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5576.0
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2020-07-05 00:00:00 UTC
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Why Investors Should Steer Clear of (Most) Robinhood Stocks
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https://www.nasdaq.com/articles/why-investors-should-steer-clear-of-most-robinhood-stocks-2020-07-05
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There's been lots of volatility on the markets this year since the outbreak of COVID-19, a lot of which has come as a result of more retail investors getting involved in the markets. The pandemic is keeping people at home, and live sporting events have been canceled, meaning people have been buying and selling shares as a way to generate some excitement in their day-to-day lives. And one particular platform that's been attracting young investors is Robinhood.
Robinhood's attracted investors by offering commission-free trades, making it easier to place small bets on stocks. But that low-cost structure may have helped enable investors to take on high-risk positions, sending speculative investments soaring in the process. Here's why you should generally avoid stocks that are popular on Robinhood.
The top stocks on Robinhood are some of the riskiest investments to hold
Retail investors, especially those on Robinhood, are often more willing than institutional investors to take on significant risk for the chance to rake in a significant profit. There's no better proof of that than what happened with Hertz (NYSE: HTZ). Despite filing for bankruptcy on May 22, the stock was seeing a lot of activity on Robinhood. Data from Robintrack, which tracks stocks that Robinhood users hold, shows that there were more than 170,000 users who were holding shares of Hertz on June 14. Prior to the bankruptcy announcement, there were fewer than 44,000 Robinhood users who were holding Hertz stock.
Shares of Hertz would go from a low of $0.40 following the bankruptcy announcement to a high of $6.25 on June 8. The stock has since crashed back down to about $1.50.
Image source: Getty Images.
It's not just bankrupt stocks that retail investors have been chasing. Among Robinhood's 100 most popular stocks are many of the riskiest stocks you can hold. COVID-19 has crippled the airline industry to the point where even Warren Buffett dumped his holdings -- but among Robinhood users, American Airlines and Delta Airlines were both in the top five holdings as of July 1. Cruise lines have also been synonymous with risk, yet both Carnival Cruise Line and Norwegian Cruise Line are among the 15 most popular Robinhood stocks.
Cannabis stocks have been among the most volatile investments to hold during the past year. The Horizons Marijuana Life Sciences ETF is down 65% in phe last 12 months and makes the S&P 500's returns of just 5% look incredible by comparison. And yet, pot stocks aren't hard to find on the Robinhood 100 list.
Stocks that aren't risky are often overpriced
Not every stock that's popular on Robinhood is a bad buy. But many of the ones that are good long-term buys are just downright expensive. As seen from Hertz's astronomical rise in price, hype can play a big factor in determining which stocks will be popular on Robinhood. For example, shares of both Amazon.com and Tesla are both among the top 20 most-held stocks on Robinhood, and both are trading at their all-time highs.
Avoiding popular Robinhood stocks may help keep your portfolio safe
Retail investors have driven a lot of volatility in the markets this year, and if you want to prevent your portfolio from going on a roller-coaster ride, it's probably a good idea to generally avoid stocks that are among the most popular on Robinhood, especially those that rank in the top 20. It could be a sign that they may be about to experience a lot of volatility (if they aren't already). Sticking to unpopular, blue-chip stocks is likely a much safer route to take.
One quality stock that isn't among the most popular list on Robinhood is Medtronic (NYSE: MDT). Fewer than 12,000 Robinhood users are holding shares of the Dividend Aristocrat. Despite paying a dividend yield of 2.5% (more than the S&P 500 average of 2%) and raising its payouts for more than four decades in a row, the healthcare stock hasn't attracted much interest from Robinhood investors. But that makes the boring old dividend stock an attractive buy for income investors -- it's not volatile and not on retail investors' radars.
With profits in nine straight quarters and Medtronic selling various medical products, it's a safe investment to hold for the long term. It's down 19% so far in 2020 while the S&P has fallen by a more modest 4%.
But a lot of that bearishness can likely be attributed to COVID-19. Dealing with the pandemic has been a priority for hospitals and that's resulted in the deferral of many medical procedures, which has hampered Medtronic's sales. The Irish company released its fourth-quarter results on May 21, which showed sales were down 26% year over year. However, Medtronic was still able to post a profit of $646 million, showing a lot of resiliency during a very difficult time for the healthcare industry.
The key takeaway from all this is that investors should avoid chasing stocks that are popular on Robinhood and instead do their own due diligence when deciding on which companies to invest in. Buying a stock because it's hot is an easy way to add a lot of volatility to your portfolio. And odds are that isn't going to be a great strategy as the economy is in a recession and the world is dealing with a pandemic -- which could suggest that another market crash may not be too far away.
Now's a time to exercise caution and stick with safe stocks like Medtronic that can help get your portfolio through this adversity.
10 stocks we like better than Medtronic
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 Medtronic 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 June 2, 2020
John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. David Jagielski has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Amazon and Tesla. The Motley Fool recommends Carnival and Delta Air Lines 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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Avoiding popular Robinhood stocks may help keep your portfolio safe Retail investors have driven a lot of volatility in the markets this year, and if you want to prevent your portfolio from going on a roller-coaster ride, it's probably a good idea to generally avoid stocks that are among the most popular on Robinhood, especially those that rank in the top 20. Despite paying a dividend yield of 2.5% (more than the S&P 500 average of 2%) and raising its payouts for more than four decades in a row, the healthcare stock hasn't attracted much interest from Robinhood investors. The key takeaway from all this is that investors should avoid chasing stocks that are popular on Robinhood and instead do their own due diligence when deciding on which companies to invest in.
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Prior to the bankruptcy announcement, there were fewer than 44,000 Robinhood users who were holding Hertz stock. Avoiding popular Robinhood stocks may help keep your portfolio safe Retail investors have driven a lot of volatility in the markets this year, and if you want to prevent your portfolio from going on a roller-coaster ride, it's probably a good idea to generally avoid stocks that are among the most popular on Robinhood, especially those that rank in the top 20. The Motley Fool recommends Carnival and Delta Air Lines and recommends the following options: short January 2022 $1940 calls on Amazon and long January 2022 $1920 calls on Amazon.
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The top stocks on Robinhood are some of the riskiest investments to hold Retail investors, especially those on Robinhood, are often more willing than institutional investors to take on significant risk for the chance to rake in a significant profit. Among Robinhood's 100 most popular stocks are many of the riskiest stocks you can hold. Avoiding popular Robinhood stocks may help keep your portfolio safe Retail investors have driven a lot of volatility in the markets this year, and if you want to prevent your portfolio from going on a roller-coaster ride, it's probably a good idea to generally avoid stocks that are among the most popular on Robinhood, especially those that rank in the top 20.
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There's been lots of volatility on the markets this year since the outbreak of COVID-19, a lot of which has come as a result of more retail investors getting involved in the markets. Among Robinhood's 100 most popular stocks are many of the riskiest stocks you can hold. But that makes the boring old dividend stock an attractive buy for income investors -- it's not volatile and not on retail investors' radars.
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5577.0
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2020-07-03 00:00:00 UTC
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FOCUS-'On the edge': Chile copper production at risk as coronavirus bites
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AAL
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https://www.nasdaq.com/articles/focus-on-the-edge%3A-chile-copper-production-at-risk-as-coronavirus-bites-2020-07-03
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By Dave Sherwood and Natalia A. Ramos Miranda
SANTIAGO, July 3 (Reuters) - Chile's vaunted copper industry is nearing a tipping point as coronavirus explodes across the South American nation, mine workers and analysts say, laying bare the hidden costs of policies that have until now salvaged its output of the red metal.
Since early April leading miners, including state-owned Codelco, BHP BHP.AX, Anglo American AAL.L, Glencore GLEN.L and Antofagasta ANTO.L have doubled down with skeleton crews in the world's largest copper producer, churning out more amid the pandemic than the year before.
But cracks are beginning to show, union leaders told Reuters. Patricio Elgueta, president of Chile's Federation of Copper Workers (FTC), an umbrella group for Codelco's unions, said miners are exhausted and scared of falling ill but keep working to make ends meet.
Elgueta said unions were weighing a proposal from a regional roundtable of healthworkers, politicians and social groups to draw down production to a "minimum" at all of the mines around the hard-hit city of Calama in order to sanitize them.
The Antofagasta region, where Calama is located, accounts for more than half of Chile's mine production, according to state copper agency statistics.
Meanwhile, Elgueta said emphasis at the major mines had necessarily shifted to processing ore as companies have scaled back staffing by around 40%. Contract work has already largely been slashed.
"You focus on production and neglect maintenance... it's not sustainable," Elgueta said in a phone interview. "First you exhaust the workers, then you cause damage to the equipment, then come delays."
Juan Carlos Guajardo, head of Santiago-based consultancy Plusmining, told Reuters the industry was coming "dangerously close to the edge."
He said an industry-wide policy of "buying time" by trimming staff and tightening safety measures had been successful, wowing the market even as Peru's mines were hit by weeks of inactivity. These measures were now catching up with Chile's miners, he added.
"We're in the worst moment of the health crisis with respect to the mining industry," he said. "(Chile) bet that the sanitary crisis would be manageable, but that's not what's happened."
The outbreak has exploded in Chile, with cases surpassing those in Italy and cresting 275,000 this week. The pandemic has spread northward to cities like Antofagasta and Calama dedicated to servicing the northern desert region's sprawling mines.
CTMIN, an umbrella group that represents 80% of Chile's mine workers, said on Wednesday it had confirmed nine deaths from COVID-19 industry-wide.
Liliana Ugarte, president of union No. 2 at Codelco's Chuquicamata mine, outside Calama, told Reuters it was time for the industry to reassess. She said the state miner should "adjust its production plans according to the current circumstances."
Codelco CEO Octavio Araneda said in an interview with local daily El Mercurio on Thursday that any further restrictions on mining would be "catastrophic" for Chile. He rejected allegations the company had fumbled the virus response.
Guajardo, the consultant, said the worsening situation meant Chile's official estimate, issued just last week, of a dent in production of 200,000 tonnes now looked conservative. He said his group estimated in April a reduction of 5.5% versus 2020 production forecasts, or 320,000 tonnes, but would revise it again shortly.
"We think that (number) should rise alongside increasing restrictions," Guajardo said.
AVALANCHE OF CASES
What began as a skirmish between workers and management at mines has increasingly spanned into politics as the epidemic has worsened, analysts and miners say.
The center-right government of President Sebastian Pinera, which has promoted a balance between safety and mining output, is beefing up inspections and tightening restrictions on movement throughout the region.
In a letter to Health Minister Enrique Paris late on Tuesday obtained by Reuters, community and social groups in mining hub Calama warned of an "avalanche" of cases and demanded miners undergo a "quarantine of 14 days, halting programs, operations and production."
Mining accounts for as much as 15% of Chile's gross domestic product, and half of the country's exports.
Chile's Mining Minister Baldo Prokurica said last week the industry needed to continue to operate to float a massive stimulus package.
Jaime Sepulveda, an analyst with industry consultancy CRU, said the Chilean government could not afford for the copper industry to shudder to a halt.
"The Peruvian government didn't consider mining to be critical, but Chile did. This government firmly believes that mining companies in Chile cannot stop."
(Reporting by Dave Sherwood and Natalia Ramos; Additional reporting by Aislinn Laing; Editing by Christian Plumb and Daniel Wallis)
((dave.sherwood@thomsonreuters.com; +56 9 9138 1047, +56 2 2370 4224))
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 early April leading miners, including state-owned Codelco, BHP BHP.AX, Anglo American AAL.L, Glencore GLEN.L and Antofagasta ANTO.L have doubled down with skeleton crews in the world's largest copper producer, churning out more amid the pandemic than the year before. By Dave Sherwood and Natalia A. Ramos Miranda SANTIAGO, July 3 (Reuters) - Chile's vaunted copper industry is nearing a tipping point as coronavirus explodes across the South American nation, mine workers and analysts say, laying bare the hidden costs of policies that have until now salvaged its output of the red metal. In a letter to Health Minister Enrique Paris late on Tuesday obtained by Reuters, community and social groups in mining hub Calama warned of an "avalanche" of cases and demanded miners undergo a "quarantine of 14 days, halting programs, operations and production."
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Since early April leading miners, including state-owned Codelco, BHP BHP.AX, Anglo American AAL.L, Glencore GLEN.L and Antofagasta ANTO.L have doubled down with skeleton crews in the world's largest copper producer, churning out more amid the pandemic than the year before. By Dave Sherwood and Natalia A. Ramos Miranda SANTIAGO, July 3 (Reuters) - Chile's vaunted copper industry is nearing a tipping point as coronavirus explodes across the South American nation, mine workers and analysts say, laying bare the hidden costs of policies that have until now salvaged its output of the red metal. Patricio Elgueta, president of Chile's Federation of Copper Workers (FTC), an umbrella group for Codelco's unions, said miners are exhausted and scared of falling ill but keep working to make ends meet.
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Since early April leading miners, including state-owned Codelco, BHP BHP.AX, Anglo American AAL.L, Glencore GLEN.L and Antofagasta ANTO.L have doubled down with skeleton crews in the world's largest copper producer, churning out more amid the pandemic than the year before. By Dave Sherwood and Natalia A. Ramos Miranda SANTIAGO, July 3 (Reuters) - Chile's vaunted copper industry is nearing a tipping point as coronavirus explodes across the South American nation, mine workers and analysts say, laying bare the hidden costs of policies that have until now salvaged its output of the red metal. Patricio Elgueta, president of Chile's Federation of Copper Workers (FTC), an umbrella group for Codelco's unions, said miners are exhausted and scared of falling ill but keep working to make ends meet.
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Since early April leading miners, including state-owned Codelco, BHP BHP.AX, Anglo American AAL.L, Glencore GLEN.L and Antofagasta ANTO.L have doubled down with skeleton crews in the world's largest copper producer, churning out more amid the pandemic than the year before. Patricio Elgueta, president of Chile's Federation of Copper Workers (FTC), an umbrella group for Codelco's unions, said miners are exhausted and scared of falling ill but keep working to make ends meet. The Antofagasta region, where Calama is located, accounts for more than half of Chile's mine production, according to state copper agency statistics.
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5578.0
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2020-07-02 00:00:00 UTC
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Five Airlines Reach Loan Agreements With Treasury Department
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AAL
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https://www.nasdaq.com/articles/five-airlines-reach-loan-agreements-with-treasury-department-2020-07-02
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(RTTNews) - Five U.S. airlines have signed agreements with the U.S. Department of the Treasury on the loan terms under the Coronavirus Aid, Relief, and Economic Security or CARES Act.
The Treasury Department said Thursday that American Airlines, Frontier Airlines, Hawaiian Airlines, Sky West Airlines, and Spirit Airlines have signed letters of intent for the terms of the federal loans.
"We are pleased that major air carriers intend to use this important program and for Treasury to use its authority under the CARES Act to provide much-needed financial assistance, while ensuring appropriate taxpayer compensation. Conversations with other airlines continue, and we look forward to finalizing agreements as soon as possible," said U.S. Treasury Secretary Steven Mnuchin.
In March, U.S. President Donald Trump signed the $2 trillion coronavirus economic stimulus bill that includes $25 billion in direct aid to the airline industry.
The CARES Act authorizes the Treasury Department to make loans to eligible businesses, including airlines, for their losses incurred as a result of the coronavirus pandemic.
Several airlines in the U.S. have cut flight schedules and fares over the past few months as the rapid spread of the coronavirus across the world sharply reduced demand for air travel. The weak demand for air travel is the worst since the last financial crisis.
The CARES Act requires the airlines participating in the program to provide warrants, equity interests, or senior debt instruments as appropriate taxpayer compensation. The airlines must also commit to maintain employment levels as well as limit employee compensation, dividends, and share repurchases.
In mid-April, major U.S. airlines agreed to general terms with the Treasury Department regarding their participation in the Payroll Support Program to prevent layoffs in the airline industry that was hit by the COVID-19 pandemic.
The airlines agreed to the Treasury's conditions such as prohibitions against involuntary furloughs and reductions in employee pay rates and benefits through September 30, 2020, the elimination of share repurchases and dividends until September 30, 2021, and limits on executive compensation until March 24, 2022.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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"We are pleased that major air carriers intend to use this important program and for Treasury to use its authority under the CARES Act to provide much-needed financial assistance, while ensuring appropriate taxpayer compensation. In March, U.S. President Donald Trump signed the $2 trillion coronavirus economic stimulus bill that includes $25 billion in direct aid to the airline industry. The CARES Act authorizes the Treasury Department to make loans to eligible businesses, including airlines, for their losses incurred as a result of the coronavirus pandemic.
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(RTTNews) - Five U.S. airlines have signed agreements with the U.S. Department of the Treasury on the loan terms under the Coronavirus Aid, Relief, and Economic Security or CARES Act. The CARES Act authorizes the Treasury Department to make loans to eligible businesses, including airlines, for their losses incurred as a result of the coronavirus pandemic. The airlines must also commit to maintain employment levels as well as limit employee compensation, dividends, and share repurchases.
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(RTTNews) - Five U.S. airlines have signed agreements with the U.S. Department of the Treasury on the loan terms under the Coronavirus Aid, Relief, and Economic Security or CARES Act. The Treasury Department said Thursday that American Airlines, Frontier Airlines, Hawaiian Airlines, Sky West Airlines, and Spirit Airlines have signed letters of intent for the terms of the federal loans. In mid-April, major U.S. airlines agreed to general terms with the Treasury Department regarding their participation in the Payroll Support Program to prevent layoffs in the airline industry that was hit by the COVID-19 pandemic.
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(RTTNews) - Five U.S. airlines have signed agreements with the U.S. Department of the Treasury on the loan terms under the Coronavirus Aid, Relief, and Economic Security or CARES Act. "We are pleased that major air carriers intend to use this important program and for Treasury to use its authority under the CARES Act to provide much-needed financial assistance, while ensuring appropriate taxpayer compensation. The weak demand for air travel is the worst since the last financial crisis.
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5579.0
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2020-07-02 00:00:00 UTC
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American Airlines sees long-haul international capacity down 25% in 2021
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AAL
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https://www.nasdaq.com/articles/american-airlines-sees-long-haul-international-capacity-down-25-in-2021-2020-07-02
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July 2 (Reuters) - American Airlines AAL.O said on Thursday it expects summer long-haul international capacity to decline 25% in 2021 compared to 2019 due to lower demand resulting from the coronavirus outbreak.
The U.S. carrier also said it would discontinue several international routes that were once popular leisure destinations but are now expected to exhibit decreased demand. (https://bit.ly/2ZyBsTL)
(Reporting by Sanjana Shivdas in Bengaluru; Editing by Amy Caren Daniel)
((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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July 2 (Reuters) - American Airlines AAL.O said on Thursday it expects summer long-haul international capacity to decline 25% in 2021 compared to 2019 due to lower demand resulting from the coronavirus outbreak. The U.S. carrier also said it would discontinue several international routes that were once popular leisure destinations but are now expected to exhibit decreased demand. (https://bit.ly/2ZyBsTL) (Reporting by Sanjana Shivdas in Bengaluru; Editing by Amy Caren Daniel) ((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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July 2 (Reuters) - American Airlines AAL.O said on Thursday it expects summer long-haul international capacity to decline 25% in 2021 compared to 2019 due to lower demand resulting from the coronavirus outbreak. The U.S. carrier also said it would discontinue several international routes that were once popular leisure destinations but are now expected to exhibit decreased demand. (https://bit.ly/2ZyBsTL) (Reporting by Sanjana Shivdas in Bengaluru; Editing by Amy Caren Daniel) ((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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July 2 (Reuters) - American Airlines AAL.O said on Thursday it expects summer long-haul international capacity to decline 25% in 2021 compared to 2019 due to lower demand resulting from the coronavirus outbreak. The U.S. carrier also said it would discontinue several international routes that were once popular leisure destinations but are now expected to exhibit decreased demand. (https://bit.ly/2ZyBsTL) (Reporting by Sanjana Shivdas in Bengaluru; Editing by Amy Caren Daniel) ((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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July 2 (Reuters) - American Airlines AAL.O said on Thursday it expects summer long-haul international capacity to decline 25% in 2021 compared to 2019 due to lower demand resulting from the coronavirus outbreak. The U.S. carrier also said it would discontinue several international routes that were once popular leisure destinations but are now expected to exhibit decreased demand. (https://bit.ly/2ZyBsTL) (Reporting by Sanjana Shivdas in Bengaluru; Editing by Amy Caren Daniel) ((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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5580.0
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2020-07-02 00:00:00 UTC
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Daily Markets: Investors Weigh Jobs Reports Against An Increasingly Uncertain Future
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AAL
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https://www.nasdaq.com/articles/daily-markets%3A-investors-weigh-jobs-reports-against-an-increasingly-uncertain-future-2020
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Today’s Big Picture
The main focus for the day will be on the two jobs reports: the weekly initial claims report and the monthly employment report. As the U.S. is seeing daily new cases of the coronavirus rise above 50,000 for the first time, making reopening plans even more uncertain, investors will be looking for signs that the economy is finding its footing. Consensus estimates are for the addition of more than 3 million new jobs in June. News from American Airlines (AAL) and McDonald's (MCD) (more below) hint that further job losses may still be coming in those areas of the economy that won’t be able to get back to “normal” any time soon.
Asian stock markets rallied this morning on media reports of a possible COVID-19 vaccine from Pfizer and BioNTech (see data download section below). India (+2.36%), South Korea (+1.29), Hong Kong (+2.55%) and Shanghai (+2.15%) surged upwards while Tokyo posted a modest 0.11% gain. By midday trading, the major European equity indices were also in the green, boosted by the latest news on vaccine development.
U.S. equity futures point to a strong open on investor anticipation of improving jobs data. We may see some bumpy trading today in the Treasury market thanks to the shortened trading day combined with two major jobs reports. Markets in the U.S. will be closed tomorrow in honor of Independence Day.
Data Download
Coronavirus
There are over 10.8 million confirmed cases of the coronavirus and nearly 520,000 deaths from Covid-19 worldwide. The U.S. is nearly 2.8 million cases, and yesterday saw a record-high for new daily cases of over 50,000 that was 31% higher than the April record high before the resurgence. Four states (Arizona, California, Georgia, and Texas) reported record-high new daily coronavirus infections yesterday, leading California to re-close bars and indoor dining in many counties. In fact, more than half of the U.S. has, at this point, reversed or halted their plans to reopen bars, restaurants, and retail shops.
On the plus side, yesterday, Pfizer (PFE) announced positive preliminary data from the most advanced of its four investigational vaccine candidates for the SARS-CoV-19 from their mRNA-based vaccine program. The preliminary data indicate that BNT162b1 can be administered in a dose that is “well-tolerated” and generated dose-dependent immunogenicity - basically, no materially negative reactions to the vaccine and those given the vaccine have generated a quantity of antibodies that looks reasonable given the vaccine dosage. A larger trial included 30,000 subjects is expected to begin later this month. If things go as hoped, the company, along with its partner BioNTech, could produce up to 100 million doses of the vaccine by year’s end and possibly more than 1.2 billion doses by the end of 2021.
International Economy
Despite having Australian exports fell 4% MoM in May while imports fell even further, down 6% MoM.
Tourism in Spain has been utterly decimated with tourist arrivals down 100% in May after the same total loss in April; no V-shaped recovery in hospitality yet.
Italy’s Unemployment rate rose to 7.8% in May from the prior 6.6%, higher than the 7.7% expected.
In the Euro Area, the unemployment rate for May rose less than the expected 7.7%, to just 7.4% from the previous 7.3%. PPI in May fell 5% YoY after a 4.5% decline in April, outpacing the 4.8% decline expected.
The U.S. House passed a bill to impose sanctions on banks that do business with Chinese officials involved in the crackdown on pro-democracy protestors in Hong Kong. The measure is expected to go to President Trump today for his signature.
Domestic Economy
Yesterday ADP’s payroll report indicated there were 2.4 million new jobs in June, which is great progress, but below expectations for 3.0 million. The company also revised its May jobs number from a loss of 2.8 million to a gain of 3.1 million - quite a range. To be fair, both ADP and the Bureau of Labor statistics use models to determine jobs gained and lost. These models work well when there are incremental changes. No model works well when there are massive shocks.
The U.S. Census released residential construction numbers through May yesterday, which found that relative to the February peak in activity, total construction spending was down 5.8%, including a 2.1% drop in May. Private residential construction is down 9.6% with a 4% decline in May, and nonresidential construction spending is down 6.2%, a 2.4% drop in May. What was most interesting in the report was the considerable upward revisions to prior years. The level of total private construction spending in 2019 was revised up 6%, which implies that the growth in 2019 after the Fed stopped tightening was much stronger than was previously indicated.
With tomorrow the official holiday for Independence Day, the Bureau of Labor Statistics will be releasing the usual monthly Non-Farm Payroll report this morning. We will also get data on the trade balance, the usual weekly jobless claims report, the ISM New York, Factory Orders. the weekly Baker Hughes Oil Rig report, and weekly EIA natural gas stock report
Markets
It was a mixed bag yesterday in the markets, with the S&P 500 gaining 0.5%, the Nasdaq rising 1.0% to make a new record high, and the Dow falling 0.3%. Yesterday was the third consecutive day of gains for the S&P 500 and the 100th day since the index bottomed out from its 33% slide and has since seen gains that have been the strongest 100-day performance in over 80 years. The index is now within 8% of its February all-time high. Gold dropped slightly to close at $1,780 an ounce, and the VIX dropped below 29, having fallen 18% over the past three days.
According to the Investment Company Institute (ICI), last week flows into bond mutual funds, and ETFs were in the 99th percentile last week, with the 4-week rolling reaching the fastest pace since 2013. Equity fund flows remain exceedingly weak and were in the bottom 3rd percentile.
Stocks to Watch
Lindsay Corp (LNN) reported Q3 (May) earnings of $0.93 per share, beating consensus of $0.88. Revenues rose 1.7% YoY to $123.1M versus the $123.52M consensus estimate. In discussing North America, the company stated that fourth-quarter irrigation equipment demand was driven largely by storm damage replacement, and the uncertainty of this demand combined with low commodity prices makes it challenging to project how the market will develop. The company cited a number of variables concerning the outlook for fiscal 2021, including current year crop results, export demand related to the U.S.-China Phase 1 trade agreement, and the level of government support payments to assist farmers. In international markets, the company cited heightened concerns regarding food security as a result of the global pandemic as a potential catalyst for additional demand.
ELAL Airlines (ELALY) reported an approximate decrease in revenues by 25% to $321M compared to Q1 2019 revenues of $429. The revenue drop translated to an operating loss of $140M compared to a Q1 2019 loss of $55. The company stated that it is in the process of establishing a plan to obtain government assistance to cope with the crisis and that it is negotiating with its employees to reach an agreement on the streamlining measures required as a condition for extending the assistance.
VMware (VMW) announced its intent to acquire Datrium to provide disaster recovery-as-a-service for hybrid cloud environments. After the deal closes, Datrium's DR services will broaden the VMware Cloud offering to include DRaaS.
McDonald's Corporation (MCD) to pause dine-in service reopening plans for an initial 21-day period in the US amid the rise in coronavirus case counts, according to WSJ.
La Croix sparkling water producer National Beverage (FIZZ) reported Q4 (Apr) earnings of $0.77 per share, beating the consensus estimate of $0.60. The company also stated revenues rose 9.4% YoY to $262.4M versus consensus of $246.27M.
JetBlue Airways (JBLU) is reported to have reached an agreement with pilots' labor union that will avoid furloughs through April 2021, according to CNBC.
American Airlines (AAL) said it was overstaffed by around 8,000 flight attendants and may look to reduce headcount through voluntary leaves and early retirements.
Bridge Bancorp (BNB) and Dime Community Bancshares (DCOM) announced that they have entered into a definitive merger agreement in an all-stock merger of equals transaction, valued at approximately $489M. The combined company will have over $11 billion in assets, over $8 billion in total deposits, and 66 branches spanning Montauk, Long Island to Manhattan. Upon closing, Dime Bancshares will represent approximately 52%, and Bridge Bancorp will represent approximately 48% of the combined company.
Merck (MRK) and Ridgeback Biotherapeutics announce that the FTC granted early termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act with regards to the development of COVID-19 treatment EIDD-2801. Under the May 26, 2020 agreement, Merck has acquired exclusive worldwide rights to develop EIDD-2801 and related molecules in collaboration with Ridgeback.
In animal studies of two distinct coronaviruses (SARS-CoV-1 and MERS), EIDD-2801 has been shown to improve pulmonary function, decrease body-weight loss, and reduce the amount of virus in the lung. EIDD-2801 was invented at Drug Innovations at Emory (DRIVE), LLC, a not-for-profit biotechnology company wholly owned by Emory University.
Leidos (LDOS) announced it had been awarded a new Blanket Purchase Agreement (BPA) by the US Customs and Border Protection to provide software development services and related specialized equipment. The BPA has a total estimated value of $960M and includes a one-year base period of performance followed by four one-year option periods.
Nu Skin (NUS) raises guidance, seeing Q2 revenue of $603-$608M as compared to the prior outlook of $520-$550M, above the consensus estimate of $542.4M. The company cited “Strong global customer growth with particular strength in the Americas and Europe.”
The Association of American Railroads reports carloads in June fell 22.4% YoY to 794,256 recovering from the trough formed in the past few months. Coal declined 34.1% while the reopening of automotive plants contributed to freight loading of metals, glass, and plastics. Farm product carloads, excluding grains, were up 11.1%, and all other categories showed a marginal improvement of 2.4%. Crushed stone, sand & gravel, and motor vehicles & parts joined coal to be the carload commodities with a major decline in June. Related tickers:
Canadian National Railway (CNI)
Canadian Pacific Railway (CP)
CSX Corp. (CSX)
Kansas City Southern (KSU)
Norfolk Southern (NSC)
Union Pacific (UNP)
Genesee & Wyoming (GWR)
Mack-Cali Realty (CLI) declared a quarterly dividend of $0.20 per share, which is in line with the previously announced dividend. The dividend is payable July 24 to shareholders of record as of July 13 and “goes ex” July 10
Other companies announcing earnings today include Korn Ferry (KFY), Fluor Corp (FLR), and Coca Cola European Partners plc (CCEP). Investors that wish to get a jump on the corporate earnings reports to be had this week should visit Nasdaq’s earnings calendar page.
On the Horizon
Dates to mark:
July 2: Nonfarm Payrolls, Unemployment Rate, Durable Goods, Capital Goods, Factory Orders
July 6: Markit Services PMI, ISM Non-Manufacturing PMI
July 7: Redbook, IBD/TIPP Economic Optimism, JOLTs Job Openings
July 8: 30 Year Mortgage Rate, Mortgage Applications, Consumer Credit
July 9: Jobless Claims, Wholesale Inventories, Bloomberg Comfort
July 10: PPI, Baker Hughes Rig Count
July 13: Budget statement
July 14: NFIB Small Business, CPI, Real Average Hourly Earnings
July 15: MBA Mortgage Apps, Import/Export Prices, Empire Manufacturing, Capacity Utilization, Industrial Production, Fed Beige Book
July 16: Retail Sales, Philly Fed Outlook, Initial Jobless Claims, Bloomberg Comfort, Business Inventories, Homebuilder Sentiment, TIC Flows
July 17: Options Expiration, Building Permits, Housing starts, Univ of Michigan Consumer Sentiment
July 21: Chicago Fed Activity
July 22: MBA Mortgage Apps, FHFA Home Prices, Existing Home Sales
July 23: Initial Jobless Claims, Bloomberg Comfort, Leading Index, Kansas City Fed Manufacturing
July 24: Preliminary Markit PMIs, New Home Sales
July 27: Durable Goods, Capital Goods, Dallas Fed Manufacturing
July 28: Case-Shiller Home Prices, Consumer Confidence, Richmond Fed Manufacturing
July 29: MBA Mortgage Apps, Trade Balance, Wholesale Inventories, Retail Inventories, Pending Home Sales, FOMC Rate Decision
July 30: GDP, Personal Consumption, Jobless Claims, Bloomberg Comfort
July 31: Personal Income and Spending, PCE, Employment Cost Index, Univ of Michigan Sentiment
Thought for the Day
As we head off to enjoy a long weekend celebrating Independence Day, some words from the first person to hold the office of the President:
"Be courteous to all, but intimate with few, and let those few be well tried before you give them your confidence.” ― George Washington
Disclosures
WMware (VMW) is a constituent in the Foxberry Tematica Research Cybersecurity & Data Privacy Index.
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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News from American Airlines (AAL) and McDonald's (MCD) (more below) hint that further job losses may still be coming in those areas of the economy that won’t be able to get back to “normal” any time soon. American Airlines (AAL) said it was overstaffed by around 8,000 flight attendants and may look to reduce headcount through voluntary leaves and early retirements. The company cited a number of variables concerning the outlook for fiscal 2021, including current year crop results, export demand related to the U.S.-China Phase 1 trade agreement, and the level of government support payments to assist farmers.
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News from American Airlines (AAL) and McDonald's (MCD) (more below) hint that further job losses may still be coming in those areas of the economy that won’t be able to get back to “normal” any time soon. American Airlines (AAL) said it was overstaffed by around 8,000 flight attendants and may look to reduce headcount through voluntary leaves and early retirements. Upon closing, Dime Bancshares will represent approximately 52%, and Bridge Bancorp will represent approximately 48% of the combined company.
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News from American Airlines (AAL) and McDonald's (MCD) (more below) hint that further job losses may still be coming in those areas of the economy that won’t be able to get back to “normal” any time soon. American Airlines (AAL) said it was overstaffed by around 8,000 flight attendants and may look to reduce headcount through voluntary leaves and early retirements. Today’s Big Picture The main focus for the day will be on the two jobs reports: the weekly initial claims report and the monthly employment report.
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News from American Airlines (AAL) and McDonald's (MCD) (more below) hint that further job losses may still be coming in those areas of the economy that won’t be able to get back to “normal” any time soon. American Airlines (AAL) said it was overstaffed by around 8,000 flight attendants and may look to reduce headcount through voluntary leaves and early retirements. The U.S. is nearly 2.8 million cases, and yesterday saw a record-high for new daily cases of over 50,000 that was 31% higher than the April record high before the resurgence.
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5581.0
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2020-07-02 00:00:00 UTC
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U.S. Treasury Finalizes Loans for Five Airlines
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AAL
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https://www.nasdaq.com/articles/u.s.-treasury-finalizes-loans-for-five-airlines-2020-07-02
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The U.S. Treasury said Thursday it has finalized loan terms with five airlines, part of the nearly $50 billion in assistance offered to the industry as part of the CARES Act stimulus plan.
Treasury has reached deals with American Airlines Group (NASDAQ: AAL), Spirit Airlines (NYSE: SAVE), Hawaiian Holdings (NASDAQ: HA), SkyWest (NASDAQ: SKYW), and Frontier Airlines. The terms on each loan were not disclosed, but will be discussed once the funding is finalized.
Image source: American Airlines.
Other carriers including Delta Air Lines have said they could eventually participate in the program, but American in particular has been vocal for months, saying it intends to tap the government for funding. American has the highest debt load among major airlines, and management has said in recent months it considers the Treasury program to be one of the most cost-effective ways to raise cash.
The Treasury program requires borrowers to provide warrants, equity interests, or senior debt instruments as appropriate taxpayer compensation. Participating borrowers must also commit to certain requirements to maintain employment levels and limit compensation, dividends, and share repurchases.
"We are pleased that major air carriers intend to use this important program and for Treasury to use its authority under the CARES Act to provide much-needed financial assistance, while ensuring appropriate taxpayer compensation," Treasury Secretary Steven T. Mnuchin said in a statement. "Conversations with other airlines continue, and we look forward to finalizing agreements as soon as possible."
Elsewhere, other airlines continue to tap private markets for funds. Alaska Air Group (NYSE: ALK) said Thursday it has secured nearly $1.2 billion in new loans backed by 61 of its owned aircraft. About $966 million of the debt will be repaid by 2027, with the rest due by 2025.
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Lou Whiteman owns shares of Delta Air Lines and Spirit Airlines. The Motley Fool owns shares of and recommends Spirit Airlines. The Motley Fool recommends Alaska Air Group, Delta Air Lines, and Hawaiian Holdings. 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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Treasury has reached deals with American Airlines Group (NASDAQ: AAL), Spirit Airlines (NYSE: SAVE), Hawaiian Holdings (NASDAQ: HA), SkyWest (NASDAQ: SKYW), and Frontier Airlines. Other carriers including Delta Air Lines have said they could eventually participate in the program, but American in particular has been vocal for months, saying it intends to tap the government for funding. American has the highest debt load among major airlines, and management has said in recent months it considers the Treasury program to be one of the most cost-effective ways to raise cash.
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Treasury has reached deals with American Airlines Group (NASDAQ: AAL), Spirit Airlines (NYSE: SAVE), Hawaiian Holdings (NASDAQ: HA), SkyWest (NASDAQ: SKYW), and Frontier Airlines. See the 10 stocks *Stock Advisor returns as of June 2, 2020 Lou Whiteman owns shares of Delta Air Lines and Spirit Airlines. The Motley Fool recommends Alaska Air Group, Delta Air Lines, and Hawaiian Holdings.
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Treasury has reached deals with American Airlines Group (NASDAQ: AAL), Spirit Airlines (NYSE: SAVE), Hawaiian Holdings (NASDAQ: HA), SkyWest (NASDAQ: SKYW), and Frontier Airlines. See the 10 stocks *Stock Advisor returns as of June 2, 2020 Lou Whiteman owns shares of Delta Air Lines and Spirit Airlines. The Motley Fool recommends Alaska Air Group, Delta Air Lines, and Hawaiian Holdings.
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Treasury has reached deals with American Airlines Group (NASDAQ: AAL), Spirit Airlines (NYSE: SAVE), Hawaiian Holdings (NASDAQ: HA), SkyWest (NASDAQ: SKYW), and Frontier Airlines. The Treasury program requires borrowers to provide warrants, equity interests, or senior debt instruments as appropriate taxpayer compensation. The Motley Fool recommends Alaska Air Group, Delta Air Lines, and Hawaiian Holdings.
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5582.0
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2020-07-02 00:00:00 UTC
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BUZZ-U.S. STOCKS ON THE MOVE-Tesla, Coty, U.S. banks, U.S. airlines
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AAL
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https://www.nasdaq.com/articles/buzz-u.s.-stocks-on-the-move-tesla-coty-u.s.-banks-u.s.-airlines-2020-07-02
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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
Wall Street opened higher on Thursday, with the Nasdaq hitting an all-time high as data showed the U.S. economy added jobs at a record pace in June, the latest signal of a rebound in business activity following the easing of coronavirus-led lockdowns. .N
At 10:18 a.m. ET, the Dow Jones Industrial Average .DJI was up 1.51% at 26,124.51. The S&P 500 .SPX was up 1.37% at 3,158.58 and the Nasdaq Composite .IXIC was up 1.42% at 10,298.585. The top three S&P 500 .PG.INX percentage gainers: ** The Mosaic Company , up 7.4% ** Hanesbrands Inc HBI.N, up 6.2% ** Akamai Technologies Inc , up 6.1% The top three S&P 500 .PL.INX percentage losers: ** Cboe Global Markets Inc , down 1.3% ** CME Group Inc , down 0.9% ** DISH Network Corp , down 1% The top three NYSE .PG.N percentage gainers: ** ION Geophysical Corp , up 27.6% ** Nu Skin Enterprises Inc , up 23.3% ** Graf Industrial Corp , up 17% The top NYSE .PL.N percentage losers: ** Document Security Systems Inc , down 23.6% ** Culp Inc , down 14.1% The top three Nasdaq .PG.O percentage gainers: ** Francesca's Holdings Corp , up 85.4% ** NuZee Inc , up 39.9% ** Electrameccanica Vehicles Corp , up 37.6% The top three Nasdaq .PL.O percentage losers: ** Liminal BioSciences Inc , down 28% ** Polar Power Inc , down 20.8% ** MEI Pharma Inc , down 16.7% ** Tesla Inc TSLA.O: up 8.3% BUZZ-Jumps on beating Q2 vehicle delivery estimates ** Lindsay Corp LNN.N: up 4.7%
BUZZ-Rises after profit beat ** FormFactor Inc FORM.O: up 8.1%
BUZZ-Gains on raised Q2 revenue outlook ** Leaf Group Ltd LEAF.N: up 1.2%
BUZZ-Jumps on higher Q2 revenue ** Centogene NV CNTG.O up 4.7%
BUZZ-Rises after FDA grants emergency use of COVID-19 test ** Ion Geophysical Corp IO.N: up 27.6%
BUZZ-Up on meeting Q2 revenue expectations ** Document Security Systems Inc DSS.A: down 23.2%
BUZZ-Tumbles on discounted stock offering ** Alaska Air Group Inc ALK.N: up 3.1% BUZZ- Gains on securing $1.2 bln in private loans ** Coty Inc COTY.N: up 5.1% BUZZ-Shares rise as Sue Nabi named CEO ** American Airlines AAL.O: up 1.4% ** United Airlines UAL.O: up 1.1% ** Delta Air Lines DAL.N: up 1.7% ** Southwest Airlines Co LUV.N: up 1.7% ** Marriott International MAR.O: up 3.0% ** Carnival Corp CCL.N: up 1.6% ** Royal Caribbean Cruises RCL.N: up 1.8% ** Norwegian Cruise Line Holdings NCLH.N: up 0.9% BUZZ-U.S. airlines, hotel and cruise stocks jump after upbeat jobs report ** Goldman Sachs Group Inc GS.N: up 2.3% ** JPMorgan Chase & Co JPM.N: up 2.1% ** Wells Fargo WFC.N: up 2.8% ** Bank of America BAC.N: up 2.5% ** Morgan Stanley MS.N: up 2.0% BUZZ-U.S. banks climb as risk sentiment improves ahead of jobs data ** NU Skin Enterprises NUS.N: up 23.3% BUZZ-Gains on raised forecast, brokerage upgrade ** BioLife BLFS.O: up 17.9% BUZZ-Surges after pricing upsized stock offering ** Macy's Inc M.N: up 0.8% BUZZ-Street View: Macy's likely to see slow recovery in tough environment ** Staffing 360 Solutions Inc STAF.O: up 33.8% BUZZ-Surges on regaining compliance with Nasdaq ** Envision Solar EVSI.O: down 8.7% BUZZ-Drops on $10 mln stock offering ** Avis Budget Group Inc CAR.O: up 21.0% BUZZ-Jumps after MS upgrades citing potential for market share gains ** MEI Pharma Inc MEIP.O: down 16.7% BUZZ-Tumbles after scrapping late-stage study of leukemia drug ** Frequency Electronics Inc FEIM.O: up 17.6% BUZZ-Surges on nearly $29 mln contract win ** Nio Inc NIO.N: up 14.6% BUZZ-Rises as vehicle deliveries speed up in Q2 ** Venus Concept VERO.O: up 21.6% BUZZ-Set for its best day as FDA clears skin correction device
The 11 major S&P 500 sectors:
Communication Services
.SPLRCL
up 0.55%
Consumer Discretionary
.SPLRCD
up 1.97%
Consumer Staples
.SPLRCS
up 1.10%
Energy
.SPNY
up 2.43%
Financial
.SPSY
up 2.02%
Health
.SPXHC
up 1.01%
Industrial
.SPLRCI
up 1.94%
Information Technology
.SPLRCT
up 1.29%
Materials
.SPLRCM
up 2.46%
Real Estate
.SPLRCR
up 0.46%
Utilities
.SPLRCU
up 0.79%
(Reporting by Arunima Kumar in Bengaluru)
((Arunima.Kumar@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 top three S&P 500 .PG.INX percentage gainers: ** The Mosaic Company , up 7.4% ** Hanesbrands Inc HBI.N, up 6.2% ** Akamai Technologies Inc , up 6.1% The top three S&P 500 .PL.INX percentage losers: ** Cboe Global Markets Inc , down 1.3% ** CME Group Inc , down 0.9% ** DISH Network Corp , down 1% The top three NYSE .PG.N percentage gainers: ** ION Geophysical Corp , up 27.6% ** Nu Skin Enterprises Inc , up 23.3% ** Graf Industrial Corp , up 17% The top NYSE .PL.N percentage losers: ** Document Security Systems Inc , down 23.6% ** Culp Inc , down 14.1% The top three Nasdaq .PG.O percentage gainers: ** Francesca's Holdings Corp , up 85.4% ** NuZee Inc , up 39.9% ** Electrameccanica Vehicles Corp , up 37.6% The top three Nasdaq .PL.O percentage losers: ** Liminal BioSciences Inc , down 28% ** Polar Power Inc , down 20.8% ** MEI Pharma Inc , down 16.7% ** Tesla Inc TSLA.O: up 8.3% BUZZ-Jumps on beating Q2 vehicle delivery estimates ** Lindsay Corp LNN.N: up 4.7% BUZZ-Rises after profit beat ** FormFactor Inc FORM.O: up 8.1% BUZZ-Gains on raised Q2 revenue outlook ** Leaf Group Ltd LEAF.N: up 1.2% BUZZ-Jumps on higher Q2 revenue ** Centogene NV CNTG.O up 4.7% BUZZ-Rises after FDA grants emergency use of COVID-19 test ** Ion Geophysical Corp IO.N: up 27.6% BUZZ-Up on meeting Q2 revenue expectations ** Document Security Systems Inc DSS.A: down 23.2% BUZZ-Tumbles on discounted stock offering ** Alaska Air Group Inc ALK.N: up 3.1% BUZZ- Gains on securing $1.2 bln in private loans ** Coty Inc COTY.N: up 5.1% BUZZ-Shares rise as Sue Nabi named CEO ** American Airlines AAL.O: up 1.4% ** United Airlines UAL.O: up 1.1% ** Delta Air Lines DAL.N: up 1.7% ** Southwest Airlines Co LUV.N: up 1.7% ** Marriott International MAR.O: up 3.0% ** Carnival Corp CCL.N: up 1.6% ** Royal Caribbean Cruises RCL.N: up 1.8% ** Norwegian Cruise Line Holdings NCLH.N: up 0.9% BUZZ-U.S. airlines, hotel and cruise stocks jump after upbeat jobs report ** Goldman Sachs Group Inc GS.N: up 2.3% ** JPMorgan Chase & Co JPM.N: up 2.1% ** Wells Fargo WFC.N: up 2.8% ** Bank of America BAC.N: up 2.5% ** Morgan Stanley MS.N: up 2.0% BUZZ-U.S. banks climb as risk sentiment improves ahead of jobs data ** NU Skin Enterprises NUS.N: up 23.3% BUZZ-Gains on raised forecast, brokerage upgrade ** BioLife BLFS.O: up 17.9% BUZZ-Surges after pricing upsized stock offering ** Macy's Inc M.N: up 0.8% BUZZ-Street View: Macy's likely to see slow recovery in tough environment ** Staffing 360 Solutions Inc STAF.O: up 33.8% BUZZ-Surges on regaining compliance with Nasdaq ** Envision Solar EVSI.O: down 8.7% BUZZ-Drops on $10 mln stock offering ** Avis Budget Group Inc CAR.O: up 21.0% BUZZ-Jumps after MS upgrades citing potential for market share gains ** MEI Pharma Inc MEIP.O: down 16.7% BUZZ-Tumbles after scrapping late-stage study of leukemia drug ** Frequency Electronics Inc FEIM.O: up 17.6% BUZZ-Surges on nearly $29 mln contract win ** Nio Inc NIO.N: up 14.6% BUZZ-Rises as vehicle deliveries speed up in Q2 ** Venus Concept VERO.O: up 21.6% BUZZ-Set for its best day as FDA clears skin correction device 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 Wall Street opened higher on Thursday, with the Nasdaq hitting an all-time high as data showed the U.S. economy added jobs at a record pace in June, the latest signal of a rebound in business activity following the easing of coronavirus-led lockdowns. up 0.79% (Reporting by Arunima Kumar in Bengaluru) ((Arunima.Kumar@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 top three S&P 500 .PG.INX percentage gainers: ** The Mosaic Company , up 7.4% ** Hanesbrands Inc HBI.N, up 6.2% ** Akamai Technologies Inc , up 6.1% The top three S&P 500 .PL.INX percentage losers: ** Cboe Global Markets Inc , down 1.3% ** CME Group Inc , down 0.9% ** DISH Network Corp , down 1% The top three NYSE .PG.N percentage gainers: ** ION Geophysical Corp , up 27.6% ** Nu Skin Enterprises Inc , up 23.3% ** Graf Industrial Corp , up 17% The top NYSE .PL.N percentage losers: ** Document Security Systems Inc , down 23.6% ** Culp Inc , down 14.1% The top three Nasdaq .PG.O percentage gainers: ** Francesca's Holdings Corp , up 85.4% ** NuZee Inc , up 39.9% ** Electrameccanica Vehicles Corp , up 37.6% The top three Nasdaq .PL.O percentage losers: ** Liminal BioSciences Inc , down 28% ** Polar Power Inc , down 20.8% ** MEI Pharma Inc , down 16.7% ** Tesla Inc TSLA.O: up 8.3% BUZZ-Jumps on beating Q2 vehicle delivery estimates ** Lindsay Corp LNN.N: up 4.7% BUZZ-Rises after profit beat ** FormFactor Inc FORM.O: up 8.1% BUZZ-Gains on raised Q2 revenue outlook ** Leaf Group Ltd LEAF.N: up 1.2% BUZZ-Jumps on higher Q2 revenue ** Centogene NV CNTG.O up 4.7% BUZZ-Rises after FDA grants emergency use of COVID-19 test ** Ion Geophysical Corp IO.N: up 27.6% BUZZ-Up on meeting Q2 revenue expectations ** Document Security Systems Inc DSS.A: down 23.2% BUZZ-Tumbles on discounted stock offering ** Alaska Air Group Inc ALK.N: up 3.1% BUZZ- Gains on securing $1.2 bln in private loans ** Coty Inc COTY.N: up 5.1% BUZZ-Shares rise as Sue Nabi named CEO ** American Airlines AAL.O: up 1.4% ** United Airlines UAL.O: up 1.1% ** Delta Air Lines DAL.N: up 1.7% ** Southwest Airlines Co LUV.N: up 1.7% ** Marriott International MAR.O: up 3.0% ** Carnival Corp CCL.N: up 1.6% ** Royal Caribbean Cruises RCL.N: up 1.8% ** Norwegian Cruise Line Holdings NCLH.N: up 0.9% BUZZ-U.S. airlines, hotel and cruise stocks jump after upbeat jobs report ** Goldman Sachs Group Inc GS.N: up 2.3% ** JPMorgan Chase & Co JPM.N: up 2.1% ** Wells Fargo WFC.N: up 2.8% ** Bank of America BAC.N: up 2.5% ** Morgan Stanley MS.N: up 2.0% BUZZ-U.S. banks climb as risk sentiment improves ahead of jobs data ** NU Skin Enterprises NUS.N: up 23.3% BUZZ-Gains on raised forecast, brokerage upgrade ** BioLife BLFS.O: up 17.9% BUZZ-Surges after pricing upsized stock offering ** Macy's Inc M.N: up 0.8% BUZZ-Street View: Macy's likely to see slow recovery in tough environment ** Staffing 360 Solutions Inc STAF.O: up 33.8% BUZZ-Surges on regaining compliance with Nasdaq ** Envision Solar EVSI.O: down 8.7% BUZZ-Drops on $10 mln stock offering ** Avis Budget Group Inc CAR.O: up 21.0% BUZZ-Jumps after MS upgrades citing potential for market share gains ** MEI Pharma Inc MEIP.O: down 16.7% BUZZ-Tumbles after scrapping late-stage study of leukemia drug ** Frequency Electronics Inc FEIM.O: up 17.6% BUZZ-Surges on nearly $29 mln contract win ** Nio Inc NIO.N: up 14.6% BUZZ-Rises as vehicle deliveries speed up in Q2 ** Venus Concept VERO.O: up 21.6% BUZZ-Set for its best day as FDA clears skin correction device 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 Wall Street opened higher on Thursday, with the Nasdaq hitting an all-time high as data showed the U.S. economy added jobs at a record pace in June, the latest signal of a rebound in business activity following the easing of coronavirus-led lockdowns. up 0.79% (Reporting by Arunima Kumar in Bengaluru) ((Arunima.Kumar@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 top three S&P 500 .PG.INX percentage gainers: ** The Mosaic Company , up 7.4% ** Hanesbrands Inc HBI.N, up 6.2% ** Akamai Technologies Inc , up 6.1% The top three S&P 500 .PL.INX percentage losers: ** Cboe Global Markets Inc , down 1.3% ** CME Group Inc , down 0.9% ** DISH Network Corp , down 1% The top three NYSE .PG.N percentage gainers: ** ION Geophysical Corp , up 27.6% ** Nu Skin Enterprises Inc , up 23.3% ** Graf Industrial Corp , up 17% The top NYSE .PL.N percentage losers: ** Document Security Systems Inc , down 23.6% ** Culp Inc , down 14.1% The top three Nasdaq .PG.O percentage gainers: ** Francesca's Holdings Corp , up 85.4% ** NuZee Inc , up 39.9% ** Electrameccanica Vehicles Corp , up 37.6% The top three Nasdaq .PL.O percentage losers: ** Liminal BioSciences Inc , down 28% ** Polar Power Inc , down 20.8% ** MEI Pharma Inc , down 16.7% ** Tesla Inc TSLA.O: up 8.3% BUZZ-Jumps on beating Q2 vehicle delivery estimates ** Lindsay Corp LNN.N: up 4.7% BUZZ-Rises after profit beat ** FormFactor Inc FORM.O: up 8.1% BUZZ-Gains on raised Q2 revenue outlook ** Leaf Group Ltd LEAF.N: up 1.2% BUZZ-Jumps on higher Q2 revenue ** Centogene NV CNTG.O up 4.7% BUZZ-Rises after FDA grants emergency use of COVID-19 test ** Ion Geophysical Corp IO.N: up 27.6% BUZZ-Up on meeting Q2 revenue expectations ** Document Security Systems Inc DSS.A: down 23.2% BUZZ-Tumbles on discounted stock offering ** Alaska Air Group Inc ALK.N: up 3.1% BUZZ- Gains on securing $1.2 bln in private loans ** Coty Inc COTY.N: up 5.1% BUZZ-Shares rise as Sue Nabi named CEO ** American Airlines AAL.O: up 1.4% ** United Airlines UAL.O: up 1.1% ** Delta Air Lines DAL.N: up 1.7% ** Southwest Airlines Co LUV.N: up 1.7% ** Marriott International MAR.O: up 3.0% ** Carnival Corp CCL.N: up 1.6% ** Royal Caribbean Cruises RCL.N: up 1.8% ** Norwegian Cruise Line Holdings NCLH.N: up 0.9% BUZZ-U.S. airlines, hotel and cruise stocks jump after upbeat jobs report ** Goldman Sachs Group Inc GS.N: up 2.3% ** JPMorgan Chase & Co JPM.N: up 2.1% ** Wells Fargo WFC.N: up 2.8% ** Bank of America BAC.N: up 2.5% ** Morgan Stanley MS.N: up 2.0% BUZZ-U.S. banks climb as risk sentiment improves ahead of jobs data ** NU Skin Enterprises NUS.N: up 23.3% BUZZ-Gains on raised forecast, brokerage upgrade ** BioLife BLFS.O: up 17.9% BUZZ-Surges after pricing upsized stock offering ** Macy's Inc M.N: up 0.8% BUZZ-Street View: Macy's likely to see slow recovery in tough environment ** Staffing 360 Solutions Inc STAF.O: up 33.8% BUZZ-Surges on regaining compliance with Nasdaq ** Envision Solar EVSI.O: down 8.7% BUZZ-Drops on $10 mln stock offering ** Avis Budget Group Inc CAR.O: up 21.0% BUZZ-Jumps after MS upgrades citing potential for market share gains ** MEI Pharma Inc MEIP.O: down 16.7% BUZZ-Tumbles after scrapping late-stage study of leukemia drug ** Frequency Electronics Inc FEIM.O: up 17.6% BUZZ-Surges on nearly $29 mln contract win ** Nio Inc NIO.N: up 14.6% BUZZ-Rises as vehicle deliveries speed up in Q2 ** Venus Concept VERO.O: up 21.6% BUZZ-Set for its best day as FDA clears skin correction device The 11 major S&P 500 sectors: Communication Services up 0.55% Consumer Discretionary up 1.97% Consumer Staples
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The top three S&P 500 .PG.INX percentage gainers: ** The Mosaic Company , up 7.4% ** Hanesbrands Inc HBI.N, up 6.2% ** Akamai Technologies Inc , up 6.1% The top three S&P 500 .PL.INX percentage losers: ** Cboe Global Markets Inc , down 1.3% ** CME Group Inc , down 0.9% ** DISH Network Corp , down 1% The top three NYSE .PG.N percentage gainers: ** ION Geophysical Corp , up 27.6% ** Nu Skin Enterprises Inc , up 23.3% ** Graf Industrial Corp , up 17% The top NYSE .PL.N percentage losers: ** Document Security Systems Inc , down 23.6% ** Culp Inc , down 14.1% The top three Nasdaq .PG.O percentage gainers: ** Francesca's Holdings Corp , up 85.4% ** NuZee Inc , up 39.9% ** Electrameccanica Vehicles Corp , up 37.6% The top three Nasdaq .PL.O percentage losers: ** Liminal BioSciences Inc , down 28% ** Polar Power Inc , down 20.8% ** MEI Pharma Inc , down 16.7% ** Tesla Inc TSLA.O: up 8.3% BUZZ-Jumps on beating Q2 vehicle delivery estimates ** Lindsay Corp LNN.N: up 4.7% BUZZ-Rises after profit beat ** FormFactor Inc FORM.O: up 8.1% BUZZ-Gains on raised Q2 revenue outlook ** Leaf Group Ltd LEAF.N: up 1.2% BUZZ-Jumps on higher Q2 revenue ** Centogene NV CNTG.O up 4.7% BUZZ-Rises after FDA grants emergency use of COVID-19 test ** Ion Geophysical Corp IO.N: up 27.6% BUZZ-Up on meeting Q2 revenue expectations ** Document Security Systems Inc DSS.A: down 23.2% BUZZ-Tumbles on discounted stock offering ** Alaska Air Group Inc ALK.N: up 3.1% BUZZ- Gains on securing $1.2 bln in private loans ** Coty Inc COTY.N: up 5.1% BUZZ-Shares rise as Sue Nabi named CEO ** American Airlines AAL.O: up 1.4% ** United Airlines UAL.O: up 1.1% ** Delta Air Lines DAL.N: up 1.7% ** Southwest Airlines Co LUV.N: up 1.7% ** Marriott International MAR.O: up 3.0% ** Carnival Corp CCL.N: up 1.6% ** Royal Caribbean Cruises RCL.N: up 1.8% ** Norwegian Cruise Line Holdings NCLH.N: up 0.9% BUZZ-U.S. airlines, hotel and cruise stocks jump after upbeat jobs report ** Goldman Sachs Group Inc GS.N: up 2.3% ** JPMorgan Chase & Co JPM.N: up 2.1% ** Wells Fargo WFC.N: up 2.8% ** Bank of America BAC.N: up 2.5% ** Morgan Stanley MS.N: up 2.0% BUZZ-U.S. banks climb as risk sentiment improves ahead of jobs data ** NU Skin Enterprises NUS.N: up 23.3% BUZZ-Gains on raised forecast, brokerage upgrade ** BioLife BLFS.O: up 17.9% BUZZ-Surges after pricing upsized stock offering ** Macy's Inc M.N: up 0.8% BUZZ-Street View: Macy's likely to see slow recovery in tough environment ** Staffing 360 Solutions Inc STAF.O: up 33.8% BUZZ-Surges on regaining compliance with Nasdaq ** Envision Solar EVSI.O: down 8.7% BUZZ-Drops on $10 mln stock offering ** Avis Budget Group Inc CAR.O: up 21.0% BUZZ-Jumps after MS upgrades citing potential for market share gains ** MEI Pharma Inc MEIP.O: down 16.7% BUZZ-Tumbles after scrapping late-stage study of leukemia drug ** Frequency Electronics Inc FEIM.O: up 17.6% BUZZ-Surges on nearly $29 mln contract win ** Nio Inc NIO.N: up 14.6% BUZZ-Rises as vehicle deliveries speed up in Q2 ** Venus Concept VERO.O: up 21.6% BUZZ-Set for its best day as FDA clears skin correction device 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 Wall Street opened higher on Thursday, with the Nasdaq hitting an all-time high as data showed the U.S. economy added jobs at a record pace in June, the latest signal of a rebound in business activity following the easing of coronavirus-led lockdowns. ET, the Dow Jones Industrial Average .DJI was up 1.51% at 26,124.51.
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5583.0
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2020-07-02 00:00:00 UTC
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A Resurgent Pandemic Is All the More Reason to Avoid Carnival
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AAL
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https://www.nasdaq.com/articles/a-resurgent-pandemic-is-all-the-more-reason-to-avoid-carnival-2020-07-02
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
It might surprise some of you but I’m not always looking at the technologies of tomorrow. Like any good investor, I enjoy betting on good companies that have found themselves in troubled waters. And with Carnival (NYSE:CCL), that description is quite literal. But while CCL stock tempts me, I’ve got to stick with my guns and focus on the fundamentals.
Source: Ruth Peterkin / Shutterstock.com
Simply, the basic narrative isn’t at all favorable. Perhaps one day, shares will distinctly become a bargain value play. Prior to the novel coronavirus pandemic, CCL enjoyed the backdrop of a robust economy and the strongest bull market on record. Eventually, we’ll return to those days. For now, though, this crisis weighs heavily on Carnival stock.
First, the cruise liner industry suffered a huge PR setback. Early in the pandemic, the stricken Diamond Princess became the very public face of the coronavirus. Thousands of people, including many Americans, desperately pleaded with their government to have them return home. Later, other cruise ships found themselves in similar plights, with few countries willing to let them dock and risk infections.
Second, the coronavirus is again rearing its ugly head. Recently, new daily cases have hit record highs, many of them resulting in hospitalizations. This resurgence has caused several states to pause or reverse their economic reopening. Further, Dr. Anthony Fauci testified before a Senate committee that new cases could skyrocket to 100,000 a day.
7 Utilities Stocks to Buy With Reassuring Dividends
Judging from reactions in the blogosphere, I can tell that’s not what people want to hear. Instead, they want to reclaim their lives. I can appreciate this sentiment. Nevertheless, you want to be careful about names like Carnival stock, which suffer disproportionately from risks of perception.
CCL Stock Must Wade Through Too Many Obstacles
If you’ve browsed through the internet, you’re likely to come across heated debate between keyboard warriors about the genuineness of rising Covid-19 cases. But as an investor, you’re not really keying in on whether case numbers are exaggerated or not. Rather, you’re concerned about what general society believes is the truth.
In this case, I think it’s safer to assume that most Americans are taking Covid-19 seriously. For instance, we’ve seen a remarkable adoption of face masks, something that’s not native to our culture. Also, demand for air travel is very deflated relative to year-ago levels.
At the latest count, air passenger volume is only about a quarter of what we’re seeing last year. Certainly, this is a big improvement from the April lows. However, it’s nowhere near sustainable for the industry. That so many people are choosing to avoid flights suggests that many are refusing to fly due to Covid-19 fears. And that’s not what you want to see for Carnival stock.
As a cruise ship, this form of transportation has only one purpose – vacationing. While this is important, so is not getting sick, especially if you have pre-existing health conditions.
Of course, that’s a major concern for many cruise ship passengers. According to the Florida-Caribbean Cruise Association in 2011, the average age of a cruiser was 50 years. In a more recent survey by the Cruise Lines International Association Global Passenger Report, the average age was 46.7 years – likely due to their young children. However, the median age was between 60 to 69 years.
Frankly, this resurgence of the coronavirus could keep out most demographics. For example, parents don’t want to subject their children to quarantine, especially in a foreign country. And older passengers don’t want to die a horrible death.
A Question of Value
Earlier, I mentioned that Carnival stock could one day represent great value. That’s not hard to believe because eventually, this pandemic will fade. Plus, social distancing will fade too, but may linger a lot longer than the virus itself.
And this brings up an interesting question about value from the customer’s perspective. Will a cruise ship aficionado fork over thousands of dollars for a heavily mitigated experience?
Eventually, cruise ship operators must come face-to-face with this inquiry. While they can give discounts to entice demand, the reality of their situation dictates full pricing but for a compromised experience.
Indeed, their situation is worse than that of American Airlines (NASDAQ:AAL) or United Airlines (NASDAQ:UAL). For instance, they can “abandon” their social distancing protocols because air travel represents a mix of vacationing, business, and necessities. But with cruise ships, everyone aboard is doing so for pleasure. Thus, it’s much easier for this group of passengers to say no.
This leaves CCL in a bit of a pickle. Until they figure this dilemma out, I’d stay away from Carnival stock.
Matthew McCall left Wall Street to actually help investors — by getting them into the world’s biggest, most revolutionary trends BEFORE anyone else. The power of being “first” gave Matt’s readers the chance to bank +2,438% in Stamps.com (STMP), +1,523% in Ulta Beauty (ULTA) and +1,044% in Tesla (TSLA), just to name a few. Click here to see what Matt has up his sleeve now. Matt does not directly own the aforementioned securities.
The post A Resurgent Pandemic Is All the More Reason to Avoid Carnival 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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Indeed, their situation is worse than that of American Airlines (NASDAQ:AAL) or United Airlines (NASDAQ:UAL). CCL Stock Must Wade Through Too Many Obstacles If you’ve browsed through the internet, you’re likely to come across heated debate between keyboard warriors about the genuineness of rising Covid-19 cases. In a more recent survey by the Cruise Lines International Association Global Passenger Report, the average age was 46.7 years – likely due to their young children.
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Indeed, their situation is worse than that of American Airlines (NASDAQ:AAL) or United Airlines (NASDAQ:UAL). Prior to the novel coronavirus pandemic, CCL enjoyed the backdrop of a robust economy and the strongest bull market on record. In a more recent survey by the Cruise Lines International Association Global Passenger Report, the average age was 46.7 years – likely due to their young children.
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Indeed, their situation is worse than that of American Airlines (NASDAQ:AAL) or United Airlines (NASDAQ:UAL). Of course, that’s a major concern for many cruise ship passengers. In a more recent survey by the Cruise Lines International Association Global Passenger Report, the average age was 46.7 years – likely due to their young children.
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Indeed, their situation is worse than that of American Airlines (NASDAQ:AAL) or United Airlines (NASDAQ:UAL). And that’s not what you want to see for Carnival stock. Of course, that’s a major concern for many cruise ship passengers.
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5584.0
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2020-07-02 00:00:00 UTC
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US Treasury Department Reaches Loan Agreements With 5 Major Airlines
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AAL
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https://www.nasdaq.com/articles/us-treasury-department-reaches-loan-agreements-with-5-major-airlines-2020-07-02
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nan
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nan
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(RTTNews) - The U.S. Department of the Treasury Thursday announced that 5 major US airlines, including American Airlines, Frontier Airlines, Hawaiian Airlines, Sky West Airlines, and Spirit Airlines, have agreed to the terms on which Treasury would extend loans under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
"We are pleased that major air carriers intend to use this important program and for Treasury to use its authority under the CARES Act to provide much-needed financial assistance, while ensuring appropriate taxpayer compensation," said Secretary Steven Mnuchin. "Conversations with other airlines continue, and we look forward to finalizing agreements as soon as possible."
The CARES Act authorizes the Department of the Treasury to make loans to eligible businesses related to losses incurred as a result of the coronavirus pandemic.
It requires borrowers to provide warrants, equity interests, or senior debt instruments as appropriate taxpayer compensation.
Participating borrowers must also commit to certain requirements under the CARES Act to maintain employment levels and limit employee compensation, dividends, and share repurchases.
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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"We are pleased that major air carriers intend to use this important program and for Treasury to use its authority under the CARES Act to provide much-needed financial assistance, while ensuring appropriate taxpayer compensation," said Secretary Steven Mnuchin. The CARES Act authorizes the Department of the Treasury to make loans to eligible businesses related to losses incurred as a result of the coronavirus pandemic. Participating borrowers must also commit to certain requirements under the CARES Act to maintain employment levels and limit employee compensation, dividends, and share repurchases.
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(RTTNews) - The U.S. Department of the Treasury Thursday announced that 5 major US airlines, including American Airlines, Frontier Airlines, Hawaiian Airlines, Sky West Airlines, and Spirit Airlines, have agreed to the terms on which Treasury would extend loans under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. "We are pleased that major air carriers intend to use this important program and for Treasury to use its authority under the CARES Act to provide much-needed financial assistance, while ensuring appropriate taxpayer compensation," said Secretary Steven Mnuchin. The CARES Act authorizes the Department of the Treasury to make loans to eligible businesses related to losses incurred as a result of the coronavirus pandemic.
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(RTTNews) - The U.S. Department of the Treasury Thursday announced that 5 major US airlines, including American Airlines, Frontier Airlines, Hawaiian Airlines, Sky West Airlines, and Spirit Airlines, have agreed to the terms on which Treasury would extend loans under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. "We are pleased that major air carriers intend to use this important program and for Treasury to use its authority under the CARES Act to provide much-needed financial assistance, while ensuring appropriate taxpayer compensation," said Secretary Steven Mnuchin. The CARES Act authorizes the Department of the Treasury to make loans to eligible businesses related to losses incurred as a result of the coronavirus pandemic.
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(RTTNews) - The U.S. Department of the Treasury Thursday announced that 5 major US airlines, including American Airlines, Frontier Airlines, Hawaiian Airlines, Sky West Airlines, and Spirit Airlines, have agreed to the terms on which Treasury would extend loans under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. It requires borrowers to provide warrants, equity interests, or senior debt instruments as appropriate taxpayer compensation. 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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5585.0
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2020-07-02 00:00:00 UTC
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World top copper producer Chile keeps output steady in May even as coronavirus explodes
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AAL
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https://www.nasdaq.com/articles/world-top-copper-producer-chile-keeps-output-steady-in-may-even-as-coronavirus-explodes
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nan
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nan
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Updates with Chilean production figures, context
SANTIAGO, July 2 (Reuters) - World top copper producer Chile held its production of copper steady in May versus the previous year even as the coronavirus outbreak exploded in the South American nation, according to data released on Thursday by state copper agency Cochilco.
The fast-spreading pandemic in Chile has rattled markets. The country´s Andean and northern desert deposits account for nearly one-third the world´s supply of the red metal.
The mining giant has nonetheless managed to boost its production in the face of the outbreak, churning out 492,500 tonnes from its sprawling mines in May, a 1% increase over the same month the previous year. The country´s output since January has risen 3.9%, to 2.4 million tonnes, the agency said.
Production at the state-run Codelco - the world's largest copper miner - rose 3% year-on-year to 144,200 tonnes. The company´s mines have held output thus far in 2020, though they have come under increasing pressure to scale back amid an uptick in infections.
The massive Collahuasi copper mine in northern Chile, a joint venture between Anglo American AAL.L and Glencore GLEN.L, also saw its May production jump 40% over 2019 to 60,100 tonnes.
BHP´s BHP.AX Escondida, the world´s largest copper mine, however, saw production in May fall 5.6% to 93,400 tonnes, the agency said.
Late May and June marked a turning point for the epidemic in Chile. Cases have spiraled upward in recent weeks, sometimes averaging 5,000 per day.
The country has confirmed nearly 285,000 cases of coronavirus and 6,000 deaths from the disease.
(Reporting by Dave Sherwood ; Editing by Bernadette Baum and Jonathan Oatis)
((dave.sherwood@thomsonreuters.com; +56 9 9138 1047, +56 2 2370 4224; Reuters Messaging: dave.sherwood.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The massive Collahuasi copper mine in northern Chile, a joint venture between Anglo American AAL.L and Glencore GLEN.L, also saw its May production jump 40% over 2019 to 60,100 tonnes. Production at the state-run Codelco - the world's largest copper miner - rose 3% year-on-year to 144,200 tonnes. The company´s mines have held output thus far in 2020, though they have come under increasing pressure to scale back amid an uptick in infections.
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The massive Collahuasi copper mine in northern Chile, a joint venture between Anglo American AAL.L and Glencore GLEN.L, also saw its May production jump 40% over 2019 to 60,100 tonnes. Updates with Chilean production figures, context SANTIAGO, July 2 (Reuters) - World top copper producer Chile held its production of copper steady in May versus the previous year even as the coronavirus outbreak exploded in the South American nation, according to data released on Thursday by state copper agency Cochilco. Production at the state-run Codelco - the world's largest copper miner - rose 3% year-on-year to 144,200 tonnes.
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The massive Collahuasi copper mine in northern Chile, a joint venture between Anglo American AAL.L and Glencore GLEN.L, also saw its May production jump 40% over 2019 to 60,100 tonnes. Updates with Chilean production figures, context SANTIAGO, July 2 (Reuters) - World top copper producer Chile held its production of copper steady in May versus the previous year even as the coronavirus outbreak exploded in the South American nation, according to data released on Thursday by state copper agency Cochilco. The mining giant has nonetheless managed to boost its production in the face of the outbreak, churning out 492,500 tonnes from its sprawling mines in May, a 1% increase over the same month the previous year.
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The massive Collahuasi copper mine in northern Chile, a joint venture between Anglo American AAL.L and Glencore GLEN.L, also saw its May production jump 40% over 2019 to 60,100 tonnes. Updates with Chilean production figures, context SANTIAGO, July 2 (Reuters) - World top copper producer Chile held its production of copper steady in May versus the previous year even as the coronavirus outbreak exploded in the South American nation, according to data released on Thursday by state copper agency Cochilco. The fast-spreading pandemic in Chile has rattled markets.
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5586.0
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2020-07-02 00:00:00 UTC
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BUZZ-U.S. STOCKS ON THE MOVE-Tesla, Xerox, U.S. banks, U.S. airlines, oil stocks, Lemonade
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AAL
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https://www.nasdaq.com/articles/buzz-u.s.-stocks-on-the-move-tesla-xerox-u.s.-banks-u.s.-airlines-oil-stocks-lemonade-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
Wall Street rose on Thursday after a record-setting increase in monthly U.S. jobs, but surging COVID-19 cases raised fears of more lockdowns and kept gains in check .N
At 11:56 ET, the Dow Jones Industrial Average .DJI was up 0.99% at 25,990.03. The S&P 500 .SPX was up 0.88% at 3,143.14 and the Nasdaq Composite .IXIC was up 1.12% at 10,268.258. The top three S&P 500 .PG.INX percentage gainers: ** Akamai Tech Inc , up 6.6% ** Noble Energy Inc , up 6.5% ** Xerox Holdings , up 6.3% The top three S&P 500 .PL.INX percentage losers: ** Ventas Inc , down 3% ** Dish Network Corp , down 2.6% ** Federal Realty Investment Trust , down 1.8% The top three NYSE .PG.N percentage gainers: ** Lemonade Inc , up 87.2% ** Ion Geophysical Corp , up 24.4% ** Nu Skin Enterprises Inc , up 23.7% The top three NYSE .PL.N percentage losers: ** Document Security Systems Inc , down 24.1% ** Culp Inc , down 9.3% ** BG Staffing Inc , down 9.3% The top two Nasdaq .PG.O percentage gainers: ** Francesca's Holdings Corp , up 71.2% ** Electrameccanica Vehicles Corp , up 37.6% The top three Nasdaq .PL.O percentage losers: ** Liminal BioSciences Inc , down 27.7% ** Gordon Pointe Acquisition Corp , down 25.4% ** Polar Power Inc , down 16.9% ** Tesla Inc TSLA.O: up 7.3% BUZZ-Jumps on beating Q2 vehicle delivery estimates ** Exxon Mobil Corp XOM.N: up 1.7% ** Chevron Corp CVX.N: up 1.7% ** Schlumberger NV SLB.N: up 2.3% ** Noble Energy Inc NBL.O: up 6.4% ** Continental Resources Inc CLR.N: up 6.6% ** EQT Corp EQT.N: up 8.4%
BUZZ-Oil and gas cos: Rise as U.S. unemployment, crude stockpiles fall ** Apellis Pharmaceuticals Inc APLS.O: up 3.0%
BUZZ-Apellis completes enrollment for rare blood disease therapy study, shares rise ** Francesca's Holdings Corp FRAN.O: up 71.2%
BUZZ-Doubles as co set to launch first mobile app ** Culp Inc CULP.N: down 9.3%
BUZZ-Tumbles after co reports bigger Q4 loss on pandemic hit ** Lindsay Corp LNN.N: up 3.1%
BUZZ-Rises after profit beat ** FormFactor Inc FORM.O: up 6.6%
BUZZ-Gains on raised Q2 revenue outlook ** Centogene NV CNTG.O up 3.5%
BUZZ-Rises after FDA grants emergency use of COVID-19 test ** Ion Geophysical Corp IO.N: up 24.4%
BUZZ-Up on meeting Q2 revenue expectations ** Document Security Systems Inc DSS.A: down 23.7%
BUZZ-Tumbles on discounted stock offering ** Alaska Air Group Inc ALK.N: up 4.2% BUZZ- Gains on securing $1.2 bln in private loans ** Coty Inc COTY.N: up 3.7% BUZZ-Shares rise as Sue Nabi named CEO ** American Airlines AAL.O: up 0.5% ** United Airlines UAL.O: up 1.2% ** Delta Air Lines DAL.N: up 1.8% ** Southwest Airlines Co LUV.N: up 2.2% ** Marriott International MAR.O: up 2.3% ** Carnival Corp CCL.N: up 0.2% ** Royal Caribbean Cruises RCL.N: up 0.4% ** Norwegian Cruise Line Holdings NCLH.N: up 0.2% BUZZ-U.S. airlines, hotel and cruise stocks jump after upbeat jobs report ** Goldman Sachs Group Inc GS.N: up 1.0% ** JPMorgan Chase & Co JPM.N: up 0.1% ** Wells Fargo WFC.N: up 0.7% ** Bank of America BAC.N: up 0.5% ** Morgan Stanley MS.N: up 1.1% BUZZ-U.S. banks climb as risk sentiment improves ahead of jobs data ** NU Skin Enterprises NUS.N: up 23.7% BUZZ-Gains on raised forecast, brokerage upgrade ** Staffing 360 Solutions Inc STAF.O: up 41.1% BUZZ-Surges on regaining compliance with Nasdaq ** Envision Solar EVSI.O: down 9.5% BUZZ-Drops on $10 mln stock offering ** Avis Budget Group Inc CAR.O: up 17.5% BUZZ-Jumps after MS upgrades citing potential for market share gains ** MEI Pharma Inc MEIP.O: down 15.6% BUZZ-Tumbles after scrapping late-stage study of leukemia drug ** Frequency Electronics Inc FEIM.O: up 14.1% BUZZ-Surges on nearly $29 mln contract win ** Nio Inc NIO.N: up 14.7% BUZZ-Rises as vehicle deliveries speed up in Q2 ** Venus Concept VERO.O: up 15.5% BUZZ-Set for its best day as FDA clears skin correction device
The 11 major S&P 500 sectors:
Communication Services
.SPLRCL
up 0.34%
Consumer Discretionary
.SPLRCD
up 1.04%
Consumer Staples
.SPLRCS
up 0.99%
Energy
.SPNY
up 1.93%
Financial
.SPSY
up 0.64%
Health
.SPXHC
up 1.25%
Industrial
.SPLRCI
up 1.38%
Information Technology
.SPLRCT
up 1.07%
Materials
.SPLRCM
up 1.87%
Real Estate
.SPLRCR
down 0.27%
Utilities
.SPLRCU
up 0.92%
(Reporting by Arunima Kumar in Bengaluru)
((Arunima.Kumar@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 top three S&P 500 .PG.INX percentage gainers: ** Akamai Tech Inc , up 6.6% ** Noble Energy Inc , up 6.5% ** Xerox Holdings , up 6.3% The top three S&P 500 .PL.INX percentage losers: ** Ventas Inc , down 3% ** Dish Network Corp , down 2.6% ** Federal Realty Investment Trust , down 1.8% The top three NYSE .PG.N percentage gainers: ** Lemonade Inc , up 87.2% ** Ion Geophysical Corp , up 24.4% ** Nu Skin Enterprises Inc , up 23.7% The top three NYSE .PL.N percentage losers: ** Document Security Systems Inc , down 24.1% ** Culp Inc , down 9.3% ** BG Staffing Inc , down 9.3% The top two Nasdaq .PG.O percentage gainers: ** Francesca's Holdings Corp , up 71.2% ** Electrameccanica Vehicles Corp , up 37.6% The top three Nasdaq .PL.O percentage losers: ** Liminal BioSciences Inc , down 27.7% ** Gordon Pointe Acquisition Corp , down 25.4% ** Polar Power Inc , down 16.9% ** Tesla Inc TSLA.O: up 7.3% BUZZ-Jumps on beating Q2 vehicle delivery estimates ** Exxon Mobil Corp XOM.N: up 1.7% ** Chevron Corp CVX.N: up 1.7% ** Schlumberger NV SLB.N: up 2.3% ** Noble Energy Inc NBL.O: up 6.4% ** Continental Resources Inc CLR.N: up 6.6% ** EQT Corp EQT.N: up 8.4% BUZZ-Oil and gas cos: Rise as U.S. unemployment, crude stockpiles fall ** Apellis Pharmaceuticals Inc APLS.O: up 3.0% BUZZ-Apellis completes enrollment for rare blood disease therapy study, shares rise ** Francesca's Holdings Corp FRAN.O: up 71.2% BUZZ-Doubles as co set to launch first mobile app ** Culp Inc CULP.N: down 9.3% BUZZ-Tumbles after co reports bigger Q4 loss on pandemic hit ** Lindsay Corp LNN.N: up 3.1% BUZZ-Rises after profit beat ** FormFactor Inc FORM.O: up 6.6% BUZZ-Gains on raised Q2 revenue outlook ** Centogene NV CNTG.O up 3.5% BUZZ-Rises after FDA grants emergency use of COVID-19 test ** Ion Geophysical Corp IO.N: up 24.4% BUZZ-Up on meeting Q2 revenue expectations ** Document Security Systems Inc DSS.A: down 23.7% BUZZ-Tumbles on discounted stock offering ** Alaska Air Group Inc ALK.N: up 4.2% BUZZ- Gains on securing $1.2 bln in private loans ** Coty Inc COTY.N: up 3.7% BUZZ-Shares rise as Sue Nabi named CEO ** American Airlines AAL.O: up 0.5% ** United Airlines UAL.O: up 1.2% ** Delta Air Lines DAL.N: up 1.8% ** Southwest Airlines Co LUV.N: up 2.2% ** Marriott International MAR.O: up 2.3% ** Carnival Corp CCL.N: up 0.2% ** Royal Caribbean Cruises RCL.N: up 0.4% ** Norwegian Cruise Line Holdings NCLH.N: up 0.2% BUZZ-U.S. airlines, hotel and cruise stocks jump after upbeat jobs report ** Goldman Sachs Group Inc GS.N: up 1.0% ** JPMorgan Chase & Co JPM.N: up 0.1% ** Wells Fargo WFC.N: up 0.7% ** Bank of America BAC.N: up 0.5% ** Morgan Stanley MS.N: up 1.1% BUZZ-U.S. banks climb as risk sentiment improves ahead of jobs data ** NU Skin Enterprises NUS.N: up 23.7% BUZZ-Gains on raised forecast, brokerage upgrade ** Staffing 360 Solutions Inc STAF.O: up 41.1% BUZZ-Surges on regaining compliance with Nasdaq ** Envision Solar EVSI.O: down 9.5% BUZZ-Drops on $10 mln stock offering ** Avis Budget Group Inc CAR.O: up 17.5% BUZZ-Jumps after MS upgrades citing potential for market share gains ** MEI Pharma Inc MEIP.O: down 15.6% BUZZ-Tumbles after scrapping late-stage study of leukemia drug ** Frequency Electronics Inc FEIM.O: up 14.1% BUZZ-Surges on nearly $29 mln contract win ** Nio Inc NIO.N: up 14.7% BUZZ-Rises as vehicle deliveries speed up in Q2 ** Venus Concept VERO.O: up 15.5% BUZZ-Set for its best day as FDA clears skin correction device 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 Wall Street rose on Thursday after a record-setting increase in monthly U.S. jobs, but surging COVID-19 cases raised fears of more lockdowns and kept gains in check .N At 11:56 ET, the Dow Jones Industrial Average .DJI was up 0.99% at 25,990.03. up 0.92% (Reporting by Arunima Kumar in Bengaluru) ((Arunima.Kumar@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 top three S&P 500 .PG.INX percentage gainers: ** Akamai Tech Inc , up 6.6% ** Noble Energy Inc , up 6.5% ** Xerox Holdings , up 6.3% The top three S&P 500 .PL.INX percentage losers: ** Ventas Inc , down 3% ** Dish Network Corp , down 2.6% ** Federal Realty Investment Trust , down 1.8% The top three NYSE .PG.N percentage gainers: ** Lemonade Inc , up 87.2% ** Ion Geophysical Corp , up 24.4% ** Nu Skin Enterprises Inc , up 23.7% The top three NYSE .PL.N percentage losers: ** Document Security Systems Inc , down 24.1% ** Culp Inc , down 9.3% ** BG Staffing Inc , down 9.3% The top two Nasdaq .PG.O percentage gainers: ** Francesca's Holdings Corp , up 71.2% ** Electrameccanica Vehicles Corp , up 37.6% The top three Nasdaq .PL.O percentage losers: ** Liminal BioSciences Inc , down 27.7% ** Gordon Pointe Acquisition Corp , down 25.4% ** Polar Power Inc , down 16.9% ** Tesla Inc TSLA.O: up 7.3% BUZZ-Jumps on beating Q2 vehicle delivery estimates ** Exxon Mobil Corp XOM.N: up 1.7% ** Chevron Corp CVX.N: up 1.7% ** Schlumberger NV SLB.N: up 2.3% ** Noble Energy Inc NBL.O: up 6.4% ** Continental Resources Inc CLR.N: up 6.6% ** EQT Corp EQT.N: up 8.4% BUZZ-Oil and gas cos: Rise as U.S. unemployment, crude stockpiles fall ** Apellis Pharmaceuticals Inc APLS.O: up 3.0% BUZZ-Apellis completes enrollment for rare blood disease therapy study, shares rise ** Francesca's Holdings Corp FRAN.O: up 71.2% BUZZ-Doubles as co set to launch first mobile app ** Culp Inc CULP.N: down 9.3% BUZZ-Tumbles after co reports bigger Q4 loss on pandemic hit ** Lindsay Corp LNN.N: up 3.1% BUZZ-Rises after profit beat ** FormFactor Inc FORM.O: up 6.6% BUZZ-Gains on raised Q2 revenue outlook ** Centogene NV CNTG.O up 3.5% BUZZ-Rises after FDA grants emergency use of COVID-19 test ** Ion Geophysical Corp IO.N: up 24.4% BUZZ-Up on meeting Q2 revenue expectations ** Document Security Systems Inc DSS.A: down 23.7% BUZZ-Tumbles on discounted stock offering ** Alaska Air Group Inc ALK.N: up 4.2% BUZZ- Gains on securing $1.2 bln in private loans ** Coty Inc COTY.N: up 3.7% BUZZ-Shares rise as Sue Nabi named CEO ** American Airlines AAL.O: up 0.5% ** United Airlines UAL.O: up 1.2% ** Delta Air Lines DAL.N: up 1.8% ** Southwest Airlines Co LUV.N: up 2.2% ** Marriott International MAR.O: up 2.3% ** Carnival Corp CCL.N: up 0.2% ** Royal Caribbean Cruises RCL.N: up 0.4% ** Norwegian Cruise Line Holdings NCLH.N: up 0.2% BUZZ-U.S. airlines, hotel and cruise stocks jump after upbeat jobs report ** Goldman Sachs Group Inc GS.N: up 1.0% ** JPMorgan Chase & Co JPM.N: up 0.1% ** Wells Fargo WFC.N: up 0.7% ** Bank of America BAC.N: up 0.5% ** Morgan Stanley MS.N: up 1.1% BUZZ-U.S. banks climb as risk sentiment improves ahead of jobs data ** NU Skin Enterprises NUS.N: up 23.7% BUZZ-Gains on raised forecast, brokerage upgrade ** Staffing 360 Solutions Inc STAF.O: up 41.1% BUZZ-Surges on regaining compliance with Nasdaq ** Envision Solar EVSI.O: down 9.5% BUZZ-Drops on $10 mln stock offering ** Avis Budget Group Inc CAR.O: up 17.5% BUZZ-Jumps after MS upgrades citing potential for market share gains ** MEI Pharma Inc MEIP.O: down 15.6% BUZZ-Tumbles after scrapping late-stage study of leukemia drug ** Frequency Electronics Inc FEIM.O: up 14.1% BUZZ-Surges on nearly $29 mln contract win ** Nio Inc NIO.N: up 14.7% BUZZ-Rises as vehicle deliveries speed up in Q2 ** Venus Concept VERO.O: up 15.5% BUZZ-Set for its best day as FDA clears skin correction device 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 Wall Street rose on Thursday after a record-setting increase in monthly U.S. jobs, but surging COVID-19 cases raised fears of more lockdowns and kept gains in check .N At 11:56 ET, the Dow Jones Industrial Average .DJI was up 0.99% at 25,990.03. up 0.92% (Reporting by Arunima Kumar in Bengaluru) ((Arunima.Kumar@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 top three S&P 500 .PG.INX percentage gainers: ** Akamai Tech Inc , up 6.6% ** Noble Energy Inc , up 6.5% ** Xerox Holdings , up 6.3% The top three S&P 500 .PL.INX percentage losers: ** Ventas Inc , down 3% ** Dish Network Corp , down 2.6% ** Federal Realty Investment Trust , down 1.8% The top three NYSE .PG.N percentage gainers: ** Lemonade Inc , up 87.2% ** Ion Geophysical Corp , up 24.4% ** Nu Skin Enterprises Inc , up 23.7% The top three NYSE .PL.N percentage losers: ** Document Security Systems Inc , down 24.1% ** Culp Inc , down 9.3% ** BG Staffing Inc , down 9.3% The top two Nasdaq .PG.O percentage gainers: ** Francesca's Holdings Corp , up 71.2% ** Electrameccanica Vehicles Corp , up 37.6% The top three Nasdaq .PL.O percentage losers: ** Liminal BioSciences Inc , down 27.7% ** Gordon Pointe Acquisition Corp , down 25.4% ** Polar Power Inc , down 16.9% ** Tesla Inc TSLA.O: up 7.3% BUZZ-Jumps on beating Q2 vehicle delivery estimates ** Exxon Mobil Corp XOM.N: up 1.7% ** Chevron Corp CVX.N: up 1.7% ** Schlumberger NV SLB.N: up 2.3% ** Noble Energy Inc NBL.O: up 6.4% ** Continental Resources Inc CLR.N: up 6.6% ** EQT Corp EQT.N: up 8.4% BUZZ-Oil and gas cos: Rise as U.S. unemployment, crude stockpiles fall ** Apellis Pharmaceuticals Inc APLS.O: up 3.0% BUZZ-Apellis completes enrollment for rare blood disease therapy study, shares rise ** Francesca's Holdings Corp FRAN.O: up 71.2% BUZZ-Doubles as co set to launch first mobile app ** Culp Inc CULP.N: down 9.3% BUZZ-Tumbles after co reports bigger Q4 loss on pandemic hit ** Lindsay Corp LNN.N: up 3.1% BUZZ-Rises after profit beat ** FormFactor Inc FORM.O: up 6.6% BUZZ-Gains on raised Q2 revenue outlook ** Centogene NV CNTG.O up 3.5% BUZZ-Rises after FDA grants emergency use of COVID-19 test ** Ion Geophysical Corp IO.N: up 24.4% BUZZ-Up on meeting Q2 revenue expectations ** Document Security Systems Inc DSS.A: down 23.7% BUZZ-Tumbles on discounted stock offering ** Alaska Air Group Inc ALK.N: up 4.2% BUZZ- Gains on securing $1.2 bln in private loans ** Coty Inc COTY.N: up 3.7% BUZZ-Shares rise as Sue Nabi named CEO ** American Airlines AAL.O: up 0.5% ** United Airlines UAL.O: up 1.2% ** Delta Air Lines DAL.N: up 1.8% ** Southwest Airlines Co LUV.N: up 2.2% ** Marriott International MAR.O: up 2.3% ** Carnival Corp CCL.N: up 0.2% ** Royal Caribbean Cruises RCL.N: up 0.4% ** Norwegian Cruise Line Holdings NCLH.N: up 0.2% BUZZ-U.S. airlines, hotel and cruise stocks jump after upbeat jobs report ** Goldman Sachs Group Inc GS.N: up 1.0% ** JPMorgan Chase & Co JPM.N: up 0.1% ** Wells Fargo WFC.N: up 0.7% ** Bank of America BAC.N: up 0.5% ** Morgan Stanley MS.N: up 1.1% BUZZ-U.S. banks climb as risk sentiment improves ahead of jobs data ** NU Skin Enterprises NUS.N: up 23.7% BUZZ-Gains on raised forecast, brokerage upgrade ** Staffing 360 Solutions Inc STAF.O: up 41.1% BUZZ-Surges on regaining compliance with Nasdaq ** Envision Solar EVSI.O: down 9.5% BUZZ-Drops on $10 mln stock offering ** Avis Budget Group Inc CAR.O: up 17.5% BUZZ-Jumps after MS upgrades citing potential for market share gains ** MEI Pharma Inc MEIP.O: down 15.6% BUZZ-Tumbles after scrapping late-stage study of leukemia drug ** Frequency Electronics Inc FEIM.O: up 14.1% BUZZ-Surges on nearly $29 mln contract win ** Nio Inc NIO.N: up 14.7% BUZZ-Rises as vehicle deliveries speed up in Q2 ** Venus Concept VERO.O: up 15.5% BUZZ-Set for its best day as FDA clears skin correction device The 11 major S&P 500 sectors: Communication Services up 0.34% Consumer Discretionary up 1.04% Consumer Staples
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The top three S&P 500 .PG.INX percentage gainers: ** Akamai Tech Inc , up 6.6% ** Noble Energy Inc , up 6.5% ** Xerox Holdings , up 6.3% The top three S&P 500 .PL.INX percentage losers: ** Ventas Inc , down 3% ** Dish Network Corp , down 2.6% ** Federal Realty Investment Trust , down 1.8% The top three NYSE .PG.N percentage gainers: ** Lemonade Inc , up 87.2% ** Ion Geophysical Corp , up 24.4% ** Nu Skin Enterprises Inc , up 23.7% The top three NYSE .PL.N percentage losers: ** Document Security Systems Inc , down 24.1% ** Culp Inc , down 9.3% ** BG Staffing Inc , down 9.3% The top two Nasdaq .PG.O percentage gainers: ** Francesca's Holdings Corp , up 71.2% ** Electrameccanica Vehicles Corp , up 37.6% The top three Nasdaq .PL.O percentage losers: ** Liminal BioSciences Inc , down 27.7% ** Gordon Pointe Acquisition Corp , down 25.4% ** Polar Power Inc , down 16.9% ** Tesla Inc TSLA.O: up 7.3% BUZZ-Jumps on beating Q2 vehicle delivery estimates ** Exxon Mobil Corp XOM.N: up 1.7% ** Chevron Corp CVX.N: up 1.7% ** Schlumberger NV SLB.N: up 2.3% ** Noble Energy Inc NBL.O: up 6.4% ** Continental Resources Inc CLR.N: up 6.6% ** EQT Corp EQT.N: up 8.4% BUZZ-Oil and gas cos: Rise as U.S. unemployment, crude stockpiles fall ** Apellis Pharmaceuticals Inc APLS.O: up 3.0% BUZZ-Apellis completes enrollment for rare blood disease therapy study, shares rise ** Francesca's Holdings Corp FRAN.O: up 71.2% BUZZ-Doubles as co set to launch first mobile app ** Culp Inc CULP.N: down 9.3% BUZZ-Tumbles after co reports bigger Q4 loss on pandemic hit ** Lindsay Corp LNN.N: up 3.1% BUZZ-Rises after profit beat ** FormFactor Inc FORM.O: up 6.6% BUZZ-Gains on raised Q2 revenue outlook ** Centogene NV CNTG.O up 3.5% BUZZ-Rises after FDA grants emergency use of COVID-19 test ** Ion Geophysical Corp IO.N: up 24.4% BUZZ-Up on meeting Q2 revenue expectations ** Document Security Systems Inc DSS.A: down 23.7% BUZZ-Tumbles on discounted stock offering ** Alaska Air Group Inc ALK.N: up 4.2% BUZZ- Gains on securing $1.2 bln in private loans ** Coty Inc COTY.N: up 3.7% BUZZ-Shares rise as Sue Nabi named CEO ** American Airlines AAL.O: up 0.5% ** United Airlines UAL.O: up 1.2% ** Delta Air Lines DAL.N: up 1.8% ** Southwest Airlines Co LUV.N: up 2.2% ** Marriott International MAR.O: up 2.3% ** Carnival Corp CCL.N: up 0.2% ** Royal Caribbean Cruises RCL.N: up 0.4% ** Norwegian Cruise Line Holdings NCLH.N: up 0.2% BUZZ-U.S. airlines, hotel and cruise stocks jump after upbeat jobs report ** Goldman Sachs Group Inc GS.N: up 1.0% ** JPMorgan Chase & Co JPM.N: up 0.1% ** Wells Fargo WFC.N: up 0.7% ** Bank of America BAC.N: up 0.5% ** Morgan Stanley MS.N: up 1.1% BUZZ-U.S. banks climb as risk sentiment improves ahead of jobs data ** NU Skin Enterprises NUS.N: up 23.7% BUZZ-Gains on raised forecast, brokerage upgrade ** Staffing 360 Solutions Inc STAF.O: up 41.1% BUZZ-Surges on regaining compliance with Nasdaq ** Envision Solar EVSI.O: down 9.5% BUZZ-Drops on $10 mln stock offering ** Avis Budget Group Inc CAR.O: up 17.5% BUZZ-Jumps after MS upgrades citing potential for market share gains ** MEI Pharma Inc MEIP.O: down 15.6% BUZZ-Tumbles after scrapping late-stage study of leukemia drug ** Frequency Electronics Inc FEIM.O: up 14.1% BUZZ-Surges on nearly $29 mln contract win ** Nio Inc NIO.N: up 14.7% BUZZ-Rises as vehicle deliveries speed up in Q2 ** Venus Concept VERO.O: up 15.5% BUZZ-Set for its best day as FDA clears skin correction device 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 Wall Street rose on Thursday after a record-setting increase in monthly U.S. jobs, but surging COVID-19 cases raised fears of more lockdowns and kept gains in check .N At 11:56 ET, the Dow Jones Industrial Average .DJI was up 0.99% at 25,990.03. The S&P 500 .SPX was up 0.88% at 3,143.14 and the Nasdaq Composite .IXIC was up 1.12% at 10,268.258.
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5587.0
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2020-07-02 00:00:00 UTC
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Chile´s Codelco boosts production in May, Escondida drops -state copper agency
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AAL
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https://www.nasdaq.com/articles/chiles-codelco-boosts-production-in-may-escondida-drops-state-copper-agency-2020-07-02
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nan
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nan
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SANTIAGO, July 2 (Reuters) - Chile´s Codelco boosted its production of copper in May versus the previous year even as the coronavirus outbreak exploded in the South American nation, according to data released on Thursday by state copper agency Cochilco.
Production at Codelco - the world's largest copper miner - rose 3% year-on-year to 144,200 tonnes.
BHP´s BHP.AX Escondida, the world´s largest copper mine, however, saw production in May fall 5.6% to 93,400 tonnes, the agency said.
The massive Collahuasi copper mine in northern Chile, a joint-venture between Anglo American AAL.L and Glencore GLEN.L, saw its May production jump 40% over 2019 to 60,100 tonnes.
(Reporting by Dave ; Editing by Bernadette Baum)
((dave.sherwood@thomsonreuters.com; +56 9 9138 1047, +56 2 2370 4224; Reuters Messaging: dave.sherwood.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
The massive Collahuasi copper mine in northern Chile, a joint-venture between Anglo American AAL.L and Glencore GLEN.L, saw its May production jump 40% over 2019 to 60,100 tonnes. SANTIAGO, July 2 (Reuters) - Chile´s Codelco boosted its production of copper in May versus the previous year even as the coronavirus outbreak exploded in the South American nation, according to data released on Thursday by state copper agency Cochilco. Production at Codelco - the world's largest copper miner - rose 3% year-on-year to 144,200 tonnes.
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The massive Collahuasi copper mine in northern Chile, a joint-venture between Anglo American AAL.L and Glencore GLEN.L, saw its May production jump 40% over 2019 to 60,100 tonnes. SANTIAGO, July 2 (Reuters) - Chile´s Codelco boosted its production of copper in May versus the previous year even as the coronavirus outbreak exploded in the South American nation, according to data released on Thursday by state copper agency Cochilco. Production at Codelco - the world's largest copper miner - rose 3% year-on-year to 144,200 tonnes.
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The massive Collahuasi copper mine in northern Chile, a joint-venture between Anglo American AAL.L and Glencore GLEN.L, saw its May production jump 40% over 2019 to 60,100 tonnes. SANTIAGO, July 2 (Reuters) - Chile´s Codelco boosted its production of copper in May versus the previous year even as the coronavirus outbreak exploded in the South American nation, according to data released on Thursday by state copper agency Cochilco. (Reporting by Dave ; Editing by Bernadette Baum) ((dave.sherwood@thomsonreuters.com; +56 9 9138 1047, +56 2 2370 4224; Reuters Messaging: dave.sherwood.thomsonreuters.com@reuters.net)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The massive Collahuasi copper mine in northern Chile, a joint-venture between Anglo American AAL.L and Glencore GLEN.L, saw its May production jump 40% over 2019 to 60,100 tonnes. SANTIAGO, July 2 (Reuters) - Chile´s Codelco boosted its production of copper in May versus the previous year even as the coronavirus outbreak exploded in the South American nation, according to data released on Thursday by state copper agency Cochilco. Production at Codelco - the world's largest copper miner - rose 3% year-on-year to 144,200 tonnes.
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5588.0
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2020-07-01 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-2020-07-01
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nan
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nan
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What happened
Airlines continue to add flights despite a growing number of COVID-19 cases, suggesting that they continue to see pent-up demand for travel. That, coupled with some positive news concerning the development of a COVID-19 vaccine, was enough to point airline shares higher at the open on Wednesday.
Shares of United Airlines Holdings (NASDAQ: UAL) jumped 10% at the open, while shares of American Airlines Group (NASDAQ: AAL) and Spirit Airlines (NYSE: SAVE) opened up 9% apiece and Delta Air Lines (NYSE: DAL) and JetBlue Airways (NASDAQ: JBLU) were each up 6% apiece.
The stocks all gave back some of their gains as the morning went on, but investors on Wednesday are looking for reasons to feel positive about what has been a beaten-down sector due to the pandemic.
Image source: Getty Images.
So what
Tuesday marked the end of the second quarter, and airlines will be happy to put that period behind them. The industry is expected to report revenue down 90% in the second quarter due to pandemic-related travel weakness.
The issues didn't end when the quarter changed, but traffic numbers are at least trending in the right direction. On Wednesday, United said it would add nearly 25,000 domestic and international flights to its August schedule as "customers are slowly returning to flying."
More than 600,000 passengers passed through airport security checkpoints on June 29, according to the Transportation Security Administration, the first day that number exceeded 25% of year-ago levels since March 19.
United's expansion is focused on leisure destinations, trying to capitalize on pent-up demand for summer vacations. And the growth, while substantial, still only restores a small part of the airline's overall schedule from a year ago. United said it would fly about 40% of its August 2019 schedule this coming August.
The growth comes despite new warnings that COVID-19 is spreading in major tourism hotspots including Florida, Texas, and California, suggesting that certain states might be forced to implement new shutdowns. But the markets got good news on the vaccine front on Wednesday as well, as Pfizer's vaccine candidate showed progress in trials suggesting it was safe for use and facilitated the production of antibodies to fight the virus.
Delta investors also got a fresh reminder of the risks that remain for airline investors. Delta partner Grupo Aeromexico SAB de CV filed for bankruptcy late Tuesday, likely wiping out Delta's 49% stake in the Mexican carrier.
Now what
This is a fragile moment for airline stocks, with the shares moving up and down on positive travel datapoints and worrying new case numbers. The pandemic is not yet over, and until it is, it is impossible to know how the third quarter and the rest of 2020 will shape up for the sector.
The airlines have raised nearly $50 billion in private funding to go along with a similar amount of government assistance, and should have the wherewithal to survive an extended downturn. But unless traffic spikes dramatically higher in the months to come, expect the industry to reduce head counts and prepare for a multi-year recovery.
I think it is safe to invest in airlines, but only as a small part of a diverse portfolio. And investors would be wise to stick to top operators with the best chance of surviving if the second wave of the pandemic ends up being as bad as, or worse than, the first.
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Lou Whiteman owns shares of Delta Air Lines and Spirit Airlines. The Motley Fool owns shares of and recommends Spirit Airlines. The Motley Fool recommends Delta Air Lines 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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Shares of United Airlines Holdings (NASDAQ: UAL) jumped 10% at the open, while shares of American Airlines Group (NASDAQ: AAL) and Spirit Airlines (NYSE: SAVE) opened up 9% apiece and Delta Air Lines (NYSE: DAL) and JetBlue Airways (NASDAQ: JBLU) were each up 6% apiece. The stocks all gave back some of their gains as the morning went on, but investors on Wednesday are looking for reasons to feel positive about what has been a beaten-down sector due to the pandemic. The growth comes despite new warnings that COVID-19 is spreading in major tourism hotspots including Florida, Texas, and California, suggesting that certain states might be forced to implement new shutdowns.
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Shares of United Airlines Holdings (NASDAQ: UAL) jumped 10% at the open, while shares of American Airlines Group (NASDAQ: AAL) and Spirit Airlines (NYSE: SAVE) opened up 9% apiece and Delta Air Lines (NYSE: DAL) and JetBlue Airways (NASDAQ: JBLU) were each up 6% apiece. See the 10 stocks *Stock Advisor returns as of June 2, 2020 Lou Whiteman owns shares of Delta Air Lines and Spirit Airlines. The Motley Fool recommends Delta Air Lines and JetBlue Airways.
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Shares of United Airlines Holdings (NASDAQ: UAL) jumped 10% at the open, while shares of American Airlines Group (NASDAQ: AAL) and Spirit Airlines (NYSE: SAVE) opened up 9% apiece and Delta Air Lines (NYSE: DAL) and JetBlue Airways (NASDAQ: JBLU) were each up 6% apiece. Now what This is a fragile moment for airline stocks, with the shares moving up and down on positive travel datapoints and worrying new case numbers. See the 10 stocks *Stock Advisor returns as of June 2, 2020 Lou Whiteman owns shares of Delta Air Lines and Spirit Airlines.
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Shares of United Airlines Holdings (NASDAQ: UAL) jumped 10% at the open, while shares of American Airlines Group (NASDAQ: AAL) and Spirit Airlines (NYSE: SAVE) opened up 9% apiece and Delta Air Lines (NYSE: DAL) and JetBlue Airways (NASDAQ: JBLU) were each up 6% apiece. That, coupled with some positive news concerning the development of a COVID-19 vaccine, was enough to point airline shares higher at the open on Wednesday. See the 10 stocks *Stock Advisor returns as of June 2, 2020 Lou Whiteman owns shares of Delta Air Lines and Spirit Airlines.
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5589.0
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2020-07-01 00:00:00 UTC
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What Happens After United Airlines Stock Retests the $20 Level
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AAL
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https://www.nasdaq.com/articles/what-happens-after-united-airlines-stock-retests-the-%2420-level-2020-07-01
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The rapidly accelerating rate of infections in the several U.S. states put a quick end to the rally in airline stocks. United Airlines (NASDAQ:UAL) peaked at $50 in early June 2020. But from there, United Airlines stock failed to find bulls.
Source: travelview / Shutterstock.com
Now that United Airlines stock is near $35, investors willing to bet on the beaten-down sector need two things.
First, UAL needs an accelerating pace of airline traffic growth. Second, the airline needs to boost its liquidity and accumulate debt as coronavirus cases hurt demand.
Bankruptcy Risk Averted for United Airlines Stock
Strong demand for United Airlines’ debt should remove any near-term bankruptcy risks. The company increased the size of its offering to $6.8 billion, up from $5 billion. At a generous yield of 7% to 7.25%, investors are clamoring over the offering because cash earns zero interest.
9 Florida Stocks to Avoid as Coronavirus Rates Spike
United Airlines mirrors the American Airlines (NASDAQ:AAL) debt sale, worth $2.5 billion, paying 11.75%, and due 2020. This offering is increased from the previously announced $1.5 billion.
UAL’s lower interest rates suggest that the market is more confident in this airline’s prospects. For example, United has $23.43 billion in debt (before the offering), compared to American Airlines’ $34.07 billion. Here are the total debt airlines carry:
Ticker Company Cash Total debt (in billions)
AAL American Airlines Group 3,576 $34.073
ALK Alaska Air Group 2,125 $3.903
DAL Delta Air Lines 5,967 $22.971
LUV Southwest Airlines 5,545 $6.349
SAVE Spirit Airlines 894 $3.714
UAL United Airlines 5,221 $23.429
Data courtesy of Stock Rover
Curious investors may download a more detailed balance sheet profile and then upload it to track debt/equity changes.
New Mandates
In addition to the U.S. aviation unions asking Congress for another $32 billion “to keep hundreds of thousands of workers employed,” CEOs will meet with the Vice President Mike Pence and other senior officials in the White House.
The companies will need to abide by federally mandated rules that will reduce the risk of spreading the coronavirus. This includes mandatory temperature checks for passengers and contact tracing of passengers.
The U.S. cannot do anything to stop the European Union from restricting U.S. travelers from entering its borders. Until the U.S. reduces infection rates in such places as Texas, Alabama, Missouri and Nevada, travelers cannot go to countries in the EU.
Delays in re-opening Disney (NYSE:DIS) theme parks in California and Florida are another negative indicator for passenger traffic growth. Still, daily Transportation Security Administration checkpoint travel numbers indicated a steady increase. On June 25, total travelers topped 623,000. Disney stock topped at nearly $130 followed with a downtrend to $109.10. And with its park closed, people who intended to visit Disneyworld will also delay their travel from state to state for now.
Double Bottom at $20
Investors who look at charts as a guide will notice that UAL shares double-bottomed at around $20 in March and in May. Increasing coronavirus cases in the U.S. will inevitably lead to higher death rates. It takes over two weeks for infected individuals to show a worsening condition if they have pre-existing conditions. These figures may force the government to re-impose flight restrictions, hurting passenger traffic.
UAL trades at a price-book ratio of below 0.9. But its debt-equity ratio of 1.88 may increase again. By comparison, Delta Air Lines (NYSE:DAL) trades at a price-book of 1.2 and a debt-equity of 1.19.
Your Takeaway
Investors who take a long-term view may apply the following metrics in a 10-year discounted cash flow model: revenue exit.
Metrics Range Conclusion
Discount Rate 8% – 7% 7.5%
Terminal Revenue Multiple 0.7x – 1.7x 1.2x
Fair Value $35.91
Upside 9.2%
Model courtesy of finbox
Despite the model implying a fair value of ~$36, the stock may keep falling to the $20 level. Still, the negative sentiment will reverse as flight demand improves.
Disclosure: As of this writing, the author did not hold a position in any of the aforementioned securities.
The post What Happens After United Airlines Stock Retests the $20 Level 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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9 Florida Stocks to Avoid as Coronavirus Rates Spike United Airlines mirrors the American Airlines (NASDAQ:AAL) debt sale, worth $2.5 billion, paying 11.75%, and due 2020. Here are the total debt airlines carry: Ticker Company Cash Total debt (in billions) AAL American Airlines Group 3,576 $34.073 ALK Alaska Air Group 2,125 $3.903 DAL Delta Air Lines 5,967 $22.971 LUV Southwest Airlines 5,545 $6.349 SAVE Spirit Airlines 894 $3.714 UAL United Airlines 5,221 $23.429 Data courtesy of Stock Rover Curious investors may download a more detailed balance sheet profile and then upload it to track debt/equity changes. New Mandates In addition to the U.S. aviation unions asking Congress for another $32 billion “to keep hundreds of thousands of workers employed,” CEOs will meet with the Vice President Mike Pence and other senior officials in the White House.
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9 Florida Stocks to Avoid as Coronavirus Rates Spike United Airlines mirrors the American Airlines (NASDAQ:AAL) debt sale, worth $2.5 billion, paying 11.75%, and due 2020. Here are the total debt airlines carry: Ticker Company Cash Total debt (in billions) AAL American Airlines Group 3,576 $34.073 ALK Alaska Air Group 2,125 $3.903 DAL Delta Air Lines 5,967 $22.971 LUV Southwest Airlines 5,545 $6.349 SAVE Spirit Airlines 894 $3.714 UAL United Airlines 5,221 $23.429 Data courtesy of Stock Rover Curious investors may download a more detailed balance sheet profile and then upload it to track debt/equity changes. Bankruptcy Risk Averted for United Airlines Stock Strong demand for United Airlines’ debt should remove any near-term bankruptcy risks.
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9 Florida Stocks to Avoid as Coronavirus Rates Spike United Airlines mirrors the American Airlines (NASDAQ:AAL) debt sale, worth $2.5 billion, paying 11.75%, and due 2020. Here are the total debt airlines carry: Ticker Company Cash Total debt (in billions) AAL American Airlines Group 3,576 $34.073 ALK Alaska Air Group 2,125 $3.903 DAL Delta Air Lines 5,967 $22.971 LUV Southwest Airlines 5,545 $6.349 SAVE Spirit Airlines 894 $3.714 UAL United Airlines 5,221 $23.429 Data courtesy of Stock Rover Curious investors may download a more detailed balance sheet profile and then upload it to track debt/equity changes. Bankruptcy Risk Averted for United Airlines Stock Strong demand for United Airlines’ debt should remove any near-term bankruptcy risks.
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9 Florida Stocks to Avoid as Coronavirus Rates Spike United Airlines mirrors the American Airlines (NASDAQ:AAL) debt sale, worth $2.5 billion, paying 11.75%, and due 2020. Here are the total debt airlines carry: Ticker Company Cash Total debt (in billions) AAL American Airlines Group 3,576 $34.073 ALK Alaska Air Group 2,125 $3.903 DAL Delta Air Lines 5,967 $22.971 LUV Southwest Airlines 5,545 $6.349 SAVE Spirit Airlines 894 $3.714 UAL United Airlines 5,221 $23.429 Data courtesy of Stock Rover Curious investors may download a more detailed balance sheet profile and then upload it to track debt/equity changes. These figures may force the government to re-impose flight restrictions, hurting passenger traffic.
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5590.0
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2020-07-01 00:00:00 UTC
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Stock Alert: American Airlines 4% Higher
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AAL
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https://www.nasdaq.com/articles/stock-alert%3A-american-airlines-4-higher-2020-07-01
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nan
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nan
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(RTTNews) - Shares of American Airlines Group Inc. (AAL) are climbing more than 6% Wednesday morning at $13.60. The stock has traded in the range of $8.25- $34.99 in the last one year.
The airline today said it will modify its long-haul international schedule with a view to bringing long-term profitability. The company has been badly affected by the outbreak of Covid-19. It plans to cut several of its routes which are in low demand now, and focus on markets that create good connectivity for customers.
The company expects summer 2021 long-haul international capacity to be down 25% compared to 2019.
"COVID-19 has forced us to reevaluate our network," said American's Chief Revenue Officer Vasu Raja. "American will have a significantly smaller international network in the year ahead, but we are using this opportunity to hit reset and create a network using the strength of our strategic hubs that we can build and grow upon and be profitable on in this new environment."
American Airlines is scheduled to start its services in full capacity beginning today.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - Shares of American Airlines Group Inc. (AAL) are climbing more than 6% Wednesday morning at $13.60. The airline today said it will modify its long-haul international schedule with a view to bringing long-term profitability. It plans to cut several of its routes which are in low demand now, and focus on markets that create good connectivity for customers.
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(RTTNews) - Shares of American Airlines Group Inc. (AAL) are climbing more than 6% Wednesday morning at $13.60. The airline today said it will modify its long-haul international schedule with a view to bringing long-term profitability. The company expects summer 2021 long-haul international capacity to be down 25% compared to 2019.
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(RTTNews) - Shares of American Airlines Group Inc. (AAL) are climbing more than 6% Wednesday morning at $13.60. The airline today said it will modify its long-haul international schedule with a view to bringing long-term profitability. "American will have a significantly smaller international network in the year ahead, but we are using this opportunity to hit reset and create a network using the strength of our strategic hubs that we can build and grow upon and be profitable on in this new environment."
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(RTTNews) - Shares of American Airlines Group Inc. (AAL) are climbing more than 6% Wednesday morning at $13.60. The airline today said it will modify its long-haul international schedule with a view to bringing long-term profitability. The company expects summer 2021 long-haul international capacity to be down 25% compared to 2019.
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5591.0
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2020-07-01 00:00:00 UTC
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JetBlue, pilots union reach deal to avoid involuntary furloughs until May 2021 - memo
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AAL
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https://www.nasdaq.com/articles/jetblue-pilots-union-reach-deal-to-avoid-involuntary-furloughs-until-may-2021-memo-2020-07
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nan
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nan
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July 1 (Reuters) - JetBlue Airways Corp JBLU.O and a labor union representing pilots, the Air Line Pilots Association (ALPA), have reached an agreement to avoid involuntary furloughs until May 1, 2021, according to a memo sent to pilots on Wednesday.
JetBlue's Master Executive Council (MEC) of the APLA voted to approve the letter of agreement that "protects all JetBlue pilots from involuntary furloughs — under any circumstances — until May 1, 2021," the union memo said.
The memo did not provide further details about the agreement.
"After thorough and productive discussions, the ALPA JetBlue pilots were able to secure strong pilot furlough protections in this agreement," the ALPA told Reuters in a statement.
The airline is set to receive $936 million in government payroll assistance, which bans companies from reducing their workforce until Sept. 30.
Airlines have been hit hard due to the COVID-19 pandemic, with American Airlines AAL.O and other U.S. carriers warning of furloughs in October, when the government payroll aid program for airlines expires.
Under the CARES Act that gave the U.S. aviation sector a $32-billion bailout to cover payroll, airlines cannot force any involuntary furloughs before October. Major unions have asked the U.S. Congress to consider extending the package through March 31.
Rival Delta Air Lines Inc DAL.N said last week it will soon send warning notices to about 2,500 pilots regarding possible furloughs at the airline.
American Airlines Group Inc AAL.O said in an employee town hall meeting last week that avoiding furloughs will be difficult and the U.S. airline expects to have between 10% and 20% more workers than needed in July 2021.
(Reporting by Aishwarya Nair in Bengaluru and Tracy Rucinski in Chicago; editing by Uttaresh.V)
((Aishwarya.Nair@thomsonreuters.com; +91-8067494421;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Airlines have been hit hard due to the COVID-19 pandemic, with American Airlines AAL.O and other U.S. carriers warning of furloughs in October, when the government payroll aid program for airlines expires. American Airlines Group Inc AAL.O said in an employee town hall meeting last week that avoiding furloughs will be difficult and the U.S. airline expects to have between 10% and 20% more workers than needed in July 2021. The airline is set to receive $936 million in government payroll assistance, which bans companies from reducing their workforce until Sept. 30.
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Airlines have been hit hard due to the COVID-19 pandemic, with American Airlines AAL.O and other U.S. carriers warning of furloughs in October, when the government payroll aid program for airlines expires. American Airlines Group Inc AAL.O said in an employee town hall meeting last week that avoiding furloughs will be difficult and the U.S. airline expects to have between 10% and 20% more workers than needed in July 2021. July 1 (Reuters) - JetBlue Airways Corp JBLU.O and a labor union representing pilots, the Air Line Pilots Association (ALPA), have reached an agreement to avoid involuntary furloughs until May 1, 2021, according to a memo sent to pilots on Wednesday.
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Airlines have been hit hard due to the COVID-19 pandemic, with American Airlines AAL.O and other U.S. carriers warning of furloughs in October, when the government payroll aid program for airlines expires. American Airlines Group Inc AAL.O said in an employee town hall meeting last week that avoiding furloughs will be difficult and the U.S. airline expects to have between 10% and 20% more workers than needed in July 2021. July 1 (Reuters) - JetBlue Airways Corp JBLU.O and a labor union representing pilots, the Air Line Pilots Association (ALPA), have reached an agreement to avoid involuntary furloughs until May 1, 2021, according to a memo sent to pilots on Wednesday.
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Airlines have been hit hard due to the COVID-19 pandemic, with American Airlines AAL.O and other U.S. carriers warning of furloughs in October, when the government payroll aid program for airlines expires. American Airlines Group Inc AAL.O said in an employee town hall meeting last week that avoiding furloughs will be difficult and the U.S. airline expects to have between 10% and 20% more workers than needed in July 2021. July 1 (Reuters) - JetBlue Airways Corp JBLU.O and a labor union representing pilots, the Air Line Pilots Association (ALPA), have reached an agreement to avoid involuntary furloughs until May 1, 2021, according to a memo sent to pilots on Wednesday.
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5592.0
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2020-07-01 00:00:00 UTC
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BUZZ-U.S. STOCKS ON THE MOVE-Akero Therapeutics, T2 Biosystems, FedEx
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AAL
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https://www.nasdaq.com/articles/buzz-u.s.-stocks-on-the-move-akero-therapeutics-t2-biosystems-fedex-2020-07-01
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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 rose on Wednesday as rising hopes of a COVID-19 vaccine offset fears of another round of lockdowns following a record surge in coronavirus cases in the United States. .N
At 12:31 ET, the Dow Jones Industrial Average .DJI was up 0.23% at 25,871.82. The S&P 500 .SPX was up 0.49% at 3,115.58 and the Nasdaq Composite .IXIC was up 0.89% at 10,147.899. The top three S&P 500 .PG.INX percentage gainers: ** FedEx Corp , up 13.2% ** Constellation Brands, Inc , up 6.7% ** Amgen Inc , up 6.5% The top three S&P 500 .PL.INX percentage losers: ** HollyFrontier Corp , down 5.2% ** Diamondback Energy Inc , down 5.1% ** Lincoln National Corp , down 5% The top three NYSE .PG.N percentage gainers: ** Innovator Nasdaq 100 Power Buffer ETF , up 63.2 % ** Horizon Global Corp , up 22.7% ** MOGU Inc , up 16.7% The top three NYSE .PL.N percentage losers: ** Navios Maritime Holdings Inc , down 18.6% ** MS Cushing MLP ETN , down 13.8% ** Steelcase Inc SCS.N, down 10.8% The top three Nasdaq .PG.O percentage gainers: ** MYOS RENS Technology Inc , up 174.6% ** Limnl Bioscn Ord , up 113.6 % ** YRC Worldwide Inc , up 84.8% The top three Nasdaq .PL.O percentage losers: ** Polar Power Inc , down 33.5% ** Inovio Pharmaceuticals Inc , down 25% ** Blink Charging Equity Warrant , down 23.1% ** Chiasma Inc CHMA.O: down 13.0%
BUZZ-Falls as biopharma co seeks equity ** Steelcase Inc SCS.N: down 10.7%
BUZZ-Down after Q1 miss as orders decline amid pandemic ** UniFirst Corp UNF.N: down 3.4%
BUZZ-Slumps after Q3 profit miss ** Pfizer Inc PFE.N: up 5.3%
BUZZ-Pfizer and BioNTech's trial data drags down rivals in COVID-19 vaccine race [nL4N2E83JR} BUZZ-Pfizer: Up after COVID-19 vaccine shows potential in human trial ** Qualigen Therapeutics Inc QLGN.O: up 31.6%
BUZZ-Soars on plans to start sale of COVID-19 antibody test in July ** American Airlines Group Inc AAL.O: up 0.9% ** United Airlines Holdings Inc UAL.O: up 1.9% ** Delta Air Lines Inc DAL.N: up 1.0% ** Southwest Airlines Co LUV.N: up 0.6% ** Hilton Worldwide Holdings Inc HLT.N: up 2.1% ** Marriott International Inc MAR.O: up 1.7% ** Hyatt Hotels Corp H.N: up 2.7% ** Carnival Corp CCL.N: up 1.0% ** Royal Caribbean Cruises Ltd RCL.N: up 2.7% ** Norwegian Cruise Line Holdings Ltd NCLH.N: up 2.6%
BUZZ-U.S. airlines, hotel and cruise stocks rise on hopes of COVID-19 vaccine BUZZ-United Airlines: Triples flights in August; shares rise ** Roku Inc ROKU.O: up 6.2%
BUZZ-Rises as Peloton streams in ** Arcturus Therapeutics Holdings Inc ARCT.O: up 0.7%
BUZZ-Arcturus forms advisory board for COVID-19 vaccine program, shares rise ** General Mills Inc GIS.N: down 2.0%
BUZZ-Falls as co flags potential hit to 2021 sales ** Amgen Inc AMGN.O: up 6.6%
BUZZ-Touches record high after patent win against Novartis ** OPKO Health Inc OPK.O: up 1.8%
BUZZ-Rises to near 2-yr high on large-scale COVID-19 test results ** Beyond Meat Inc BYND.O: up 7.2% BUZZ-Beyond Meat to launch retail sales of patties in China, shares jump ** Denny's Corp DENN.O: down 10.0% BUZZ-Denny's drops on stock offering plans ** Akero Therapeutics Inc AKRO.O: up 29.2% BUZZ-Jumps on positive data from liver disease treatment study ** Travelcenters of America Inc TA.O: down 11.0% BUZZ-Tumbles on stock offering ** T2 Biosystems Inc TTOO.O: up 36.6% BUZZ-Surges after launch of COVID-19 test in U.S. ** Northern Oil and Gas Inc NOG.N: up 6.5% BUZZ-SunTrust upgrades to 'buy', expects spending curbs ** Constellation Brands Inc STZ.N: up 6.8% BUZZ-Gains on first-quarter profit beat ** MediciNova Inc MNOV.O: up 8.9% BUZZ-Jumps on new drug application acceptance ** FedEx Corp FDX.N: up 13.2% BUZZ-Higher as results beat on pandemic-fueled shipments surge BUZZ-Street View: FedEx benefits from e-commerce growth amid challenges ** Inovio Pharmaceuticals Inc INO.O: down 25.0% BUZZ-Extends fall as brokerages downgrade ** Pebblebrook Hotel Trust PEB.N: up 3.5% BUZZ-Rises on improving occupancy, reduced cash burn forecast ** Exela Technologies Inc XELA.O: down 18.8% BUZZ-Falls on downbeat revenue forecast ** YRC Worldwide Inc YRCW.O: up 84.8% BUZZ-Surges on credit lifeline from U.S. Treasury ** Therapix Biosciences Ltd TRPX.O: down 44.4% BUZZ-Drops on Nasdaq delisting notice
The 11 major S&P 500 sectors:
Communication Services
.SPLRCL
up 2.05%
Consumer Discretionary
.SPLRCD
up 1.22%
Consumer Staples
.SPLRCS
up 0.42%
Energy
.SPNY
down 1.80%
Financial
.SPSY
down 0.47%
Health
.SPXHC
up 0.90%
Industrial
.SPLRCI
up 0.20%
Information Technology
.SPLRCT
up 0.40%
Materials
.SPLRCM
down 0.35%
Real Estate
.SPLRCR
up 1.86%
Utilities
.SPLRCU
up 1.95%
(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: ** FedEx Corp , up 13.2% ** Constellation Brands, Inc , up 6.7% ** Amgen Inc , up 6.5% The top three S&P 500 .PL.INX percentage losers: ** HollyFrontier Corp , down 5.2% ** Diamondback Energy Inc , down 5.1% ** Lincoln National Corp , down 5% The top three NYSE .PG.N percentage gainers: ** Innovator Nasdaq 100 Power Buffer ETF , up 63.2 % ** Horizon Global Corp , up 22.7% ** MOGU Inc , up 16.7% The top three NYSE .PL.N percentage losers: ** Navios Maritime Holdings Inc , down 18.6% ** MS Cushing MLP ETN , down 13.8% ** Steelcase Inc SCS.N, down 10.8% The top three Nasdaq .PG.O percentage gainers: ** MYOS RENS Technology Inc , up 174.6% ** Limnl Bioscn Ord , up 113.6 % ** YRC Worldwide Inc , up 84.8% The top three Nasdaq .PL.O percentage losers: ** Polar Power Inc , down 33.5% ** Inovio Pharmaceuticals Inc , down 25% ** Blink Charging Equity Warrant , down 23.1% ** Chiasma Inc CHMA.O: down 13.0% BUZZ-Falls as biopharma co seeks equity ** Steelcase Inc SCS.N: down 10.7% BUZZ-Down after Q1 miss as orders decline amid pandemic ** UniFirst Corp UNF.N: down 3.4% BUZZ-Slumps after Q3 profit miss ** Pfizer Inc PFE.N: up 5.3% BUZZ-Pfizer and BioNTech's trial data drags down rivals in COVID-19 vaccine race [nL4N2E83JR} BUZZ-Pfizer: Up after COVID-19 vaccine shows potential in human trial ** Qualigen Therapeutics Inc QLGN.O: up 31.6% BUZZ-Soars on plans to start sale of COVID-19 antibody test in July ** American Airlines Group Inc AAL.O: up 0.9% ** United Airlines Holdings Inc UAL.O: up 1.9% ** Delta Air Lines Inc DAL.N: up 1.0% ** Southwest Airlines Co LUV.N: up 0.6% ** Hilton Worldwide Holdings Inc HLT.N: up 2.1% ** Marriott International Inc MAR.O: up 1.7% ** Hyatt Hotels Corp H.N: up 2.7% ** Carnival Corp CCL.N: up 1.0% ** Royal Caribbean Cruises Ltd RCL.N: up 2.7% ** Norwegian Cruise Line Holdings Ltd NCLH.N: up 2.6% BUZZ-U.S. airlines, hotel and cruise stocks rise on hopes of COVID-19 vaccine BUZZ-United Airlines: Triples flights in August; shares rise ** Roku Inc ROKU.O: up 6.2% BUZZ-Rises as Peloton streams in ** Arcturus Therapeutics Holdings Inc ARCT.O: up 0.7% BUZZ-Arcturus forms advisory board for COVID-19 vaccine program, shares rise ** General Mills Inc GIS.N: down 2.0% BUZZ-Falls as co flags potential hit to 2021 sales ** Amgen Inc AMGN.O: up 6.6% BUZZ-Touches record high after patent win against Novartis ** OPKO Health Inc OPK.O: up 1.8% BUZZ-Rises to near 2-yr high on large-scale COVID-19 test results ** Beyond Meat Inc BYND.O: up 7.2% BUZZ-Beyond Meat to launch retail sales of patties in China, shares jump ** Denny's Corp DENN.O: down 10.0% BUZZ-Denny's drops on stock offering plans ** Akero Therapeutics Inc AKRO.O: up 29.2% BUZZ-Jumps on positive data from liver disease treatment study ** Travelcenters of America Inc TA.O: down 11.0% BUZZ-Tumbles on stock offering ** T2 Biosystems Inc TTOO.O: up 36.6% BUZZ-Surges after launch of COVID-19 test in U.S. ** Northern Oil and Gas Inc NOG.N: up 6.5% BUZZ-SunTrust upgrades to 'buy', expects spending curbs ** Constellation Brands Inc STZ.N: up 6.8% BUZZ-Gains on first-quarter profit beat ** MediciNova Inc MNOV.O: up 8.9% BUZZ-Jumps on new drug application acceptance ** FedEx Corp FDX.N: up 13.2% BUZZ-Higher as results beat on pandemic-fueled shipments surge BUZZ-Street View: FedEx benefits from e-commerce growth amid challenges ** Inovio Pharmaceuticals Inc INO.O: down 25.0% BUZZ-Extends fall as brokerages downgrade ** Pebblebrook Hotel Trust PEB.N: up 3.5% BUZZ-Rises on improving occupancy, reduced cash burn forecast ** Exela Technologies Inc XELA.O: down 18.8% BUZZ-Falls on downbeat revenue forecast ** YRC Worldwide Inc YRCW.O: up 84.8% BUZZ-Surges on credit lifeline from U.S. Treasury ** Therapix Biosciences Ltd TRPX.O: down 44.4% BUZZ-Drops on Nasdaq delisting notice 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 rose on Wednesday as rising hopes of a COVID-19 vaccine offset fears of another round of lockdowns following a record surge in coronavirus cases in the United States. up 1.95% (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: ** FedEx Corp , up 13.2% ** Constellation Brands, Inc , up 6.7% ** Amgen Inc , up 6.5% The top three S&P 500 .PL.INX percentage losers: ** HollyFrontier Corp , down 5.2% ** Diamondback Energy Inc , down 5.1% ** Lincoln National Corp , down 5% The top three NYSE .PG.N percentage gainers: ** Innovator Nasdaq 100 Power Buffer ETF , up 63.2 % ** Horizon Global Corp , up 22.7% ** MOGU Inc , up 16.7% The top three NYSE .PL.N percentage losers: ** Navios Maritime Holdings Inc , down 18.6% ** MS Cushing MLP ETN , down 13.8% ** Steelcase Inc SCS.N, down 10.8% The top three Nasdaq .PG.O percentage gainers: ** MYOS RENS Technology Inc , up 174.6% ** Limnl Bioscn Ord , up 113.6 % ** YRC Worldwide Inc , up 84.8% The top three Nasdaq .PL.O percentage losers: ** Polar Power Inc , down 33.5% ** Inovio Pharmaceuticals Inc , down 25% ** Blink Charging Equity Warrant , down 23.1% ** Chiasma Inc CHMA.O: down 13.0% BUZZ-Falls as biopharma co seeks equity ** Steelcase Inc SCS.N: down 10.7% BUZZ-Down after Q1 miss as orders decline amid pandemic ** UniFirst Corp UNF.N: down 3.4% BUZZ-Slumps after Q3 profit miss ** Pfizer Inc PFE.N: up 5.3% BUZZ-Pfizer and BioNTech's trial data drags down rivals in COVID-19 vaccine race [nL4N2E83JR} BUZZ-Pfizer: Up after COVID-19 vaccine shows potential in human trial ** Qualigen Therapeutics Inc QLGN.O: up 31.6% BUZZ-Soars on plans to start sale of COVID-19 antibody test in July ** American Airlines Group Inc AAL.O: up 0.9% ** United Airlines Holdings Inc UAL.O: up 1.9% ** Delta Air Lines Inc DAL.N: up 1.0% ** Southwest Airlines Co LUV.N: up 0.6% ** Hilton Worldwide Holdings Inc HLT.N: up 2.1% ** Marriott International Inc MAR.O: up 1.7% ** Hyatt Hotels Corp H.N: up 2.7% ** Carnival Corp CCL.N: up 1.0% ** Royal Caribbean Cruises Ltd RCL.N: up 2.7% ** Norwegian Cruise Line Holdings Ltd NCLH.N: up 2.6% BUZZ-U.S. airlines, hotel and cruise stocks rise on hopes of COVID-19 vaccine BUZZ-United Airlines: Triples flights in August; shares rise ** Roku Inc ROKU.O: up 6.2% BUZZ-Rises as Peloton streams in ** Arcturus Therapeutics Holdings Inc ARCT.O: up 0.7% BUZZ-Arcturus forms advisory board for COVID-19 vaccine program, shares rise ** General Mills Inc GIS.N: down 2.0% BUZZ-Falls as co flags potential hit to 2021 sales ** Amgen Inc AMGN.O: up 6.6% BUZZ-Touches record high after patent win against Novartis ** OPKO Health Inc OPK.O: up 1.8% BUZZ-Rises to near 2-yr high on large-scale COVID-19 test results ** Beyond Meat Inc BYND.O: up 7.2% BUZZ-Beyond Meat to launch retail sales of patties in China, shares jump ** Denny's Corp DENN.O: down 10.0% BUZZ-Denny's drops on stock offering plans ** Akero Therapeutics Inc AKRO.O: up 29.2% BUZZ-Jumps on positive data from liver disease treatment study ** Travelcenters of America Inc TA.O: down 11.0% BUZZ-Tumbles on stock offering ** T2 Biosystems Inc TTOO.O: up 36.6% BUZZ-Surges after launch of COVID-19 test in U.S. ** Northern Oil and Gas Inc NOG.N: up 6.5% BUZZ-SunTrust upgrades to 'buy', expects spending curbs ** Constellation Brands Inc STZ.N: up 6.8% BUZZ-Gains on first-quarter profit beat ** MediciNova Inc MNOV.O: up 8.9% BUZZ-Jumps on new drug application acceptance ** FedEx Corp FDX.N: up 13.2% BUZZ-Higher as results beat on pandemic-fueled shipments surge BUZZ-Street View: FedEx benefits from e-commerce growth amid challenges ** Inovio Pharmaceuticals Inc INO.O: down 25.0% BUZZ-Extends fall as brokerages downgrade ** Pebblebrook Hotel Trust PEB.N: up 3.5% BUZZ-Rises on improving occupancy, reduced cash burn forecast ** Exela Technologies Inc XELA.O: down 18.8% BUZZ-Falls on downbeat revenue forecast ** YRC Worldwide Inc YRCW.O: up 84.8% BUZZ-Surges on credit lifeline from U.S. Treasury ** Therapix Biosciences Ltd TRPX.O: down 44.4% BUZZ-Drops on Nasdaq delisting notice 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 rose on Wednesday as rising hopes of a COVID-19 vaccine offset fears of another round of lockdowns following a record surge in coronavirus cases in the United States. up 1.95% (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: ** FedEx Corp , up 13.2% ** Constellation Brands, Inc , up 6.7% ** Amgen Inc , up 6.5% The top three S&P 500 .PL.INX percentage losers: ** HollyFrontier Corp , down 5.2% ** Diamondback Energy Inc , down 5.1% ** Lincoln National Corp , down 5% The top three NYSE .PG.N percentage gainers: ** Innovator Nasdaq 100 Power Buffer ETF , up 63.2 % ** Horizon Global Corp , up 22.7% ** MOGU Inc , up 16.7% The top three NYSE .PL.N percentage losers: ** Navios Maritime Holdings Inc , down 18.6% ** MS Cushing MLP ETN , down 13.8% ** Steelcase Inc SCS.N, down 10.8% The top three Nasdaq .PG.O percentage gainers: ** MYOS RENS Technology Inc , up 174.6% ** Limnl Bioscn Ord , up 113.6 % ** YRC Worldwide Inc , up 84.8% The top three Nasdaq .PL.O percentage losers: ** Polar Power Inc , down 33.5% ** Inovio Pharmaceuticals Inc , down 25% ** Blink Charging Equity Warrant , down 23.1% ** Chiasma Inc CHMA.O: down 13.0% BUZZ-Falls as biopharma co seeks equity ** Steelcase Inc SCS.N: down 10.7% BUZZ-Down after Q1 miss as orders decline amid pandemic ** UniFirst Corp UNF.N: down 3.4% BUZZ-Slumps after Q3 profit miss ** Pfizer Inc PFE.N: up 5.3% BUZZ-Pfizer and BioNTech's trial data drags down rivals in COVID-19 vaccine race [nL4N2E83JR} BUZZ-Pfizer: Up after COVID-19 vaccine shows potential in human trial ** Qualigen Therapeutics Inc QLGN.O: up 31.6% BUZZ-Soars on plans to start sale of COVID-19 antibody test in July ** American Airlines Group Inc AAL.O: up 0.9% ** United Airlines Holdings Inc UAL.O: up 1.9% ** Delta Air Lines Inc DAL.N: up 1.0% ** Southwest Airlines Co LUV.N: up 0.6% ** Hilton Worldwide Holdings Inc HLT.N: up 2.1% ** Marriott International Inc MAR.O: up 1.7% ** Hyatt Hotels Corp H.N: up 2.7% ** Carnival Corp CCL.N: up 1.0% ** Royal Caribbean Cruises Ltd RCL.N: up 2.7% ** Norwegian Cruise Line Holdings Ltd NCLH.N: up 2.6% BUZZ-U.S. airlines, hotel and cruise stocks rise on hopes of COVID-19 vaccine BUZZ-United Airlines: Triples flights in August; shares rise ** Roku Inc ROKU.O: up 6.2% BUZZ-Rises as Peloton streams in ** Arcturus Therapeutics Holdings Inc ARCT.O: up 0.7% BUZZ-Arcturus forms advisory board for COVID-19 vaccine program, shares rise ** General Mills Inc GIS.N: down 2.0% BUZZ-Falls as co flags potential hit to 2021 sales ** Amgen Inc AMGN.O: up 6.6% BUZZ-Touches record high after patent win against Novartis ** OPKO Health Inc OPK.O: up 1.8% BUZZ-Rises to near 2-yr high on large-scale COVID-19 test results ** Beyond Meat Inc BYND.O: up 7.2% BUZZ-Beyond Meat to launch retail sales of patties in China, shares jump ** Denny's Corp DENN.O: down 10.0% BUZZ-Denny's drops on stock offering plans ** Akero Therapeutics Inc AKRO.O: up 29.2% BUZZ-Jumps on positive data from liver disease treatment study ** Travelcenters of America Inc TA.O: down 11.0% BUZZ-Tumbles on stock offering ** T2 Biosystems Inc TTOO.O: up 36.6% BUZZ-Surges after launch of COVID-19 test in U.S. ** Northern Oil and Gas Inc NOG.N: up 6.5% BUZZ-SunTrust upgrades to 'buy', expects spending curbs ** Constellation Brands Inc STZ.N: up 6.8% BUZZ-Gains on first-quarter profit beat ** MediciNova Inc MNOV.O: up 8.9% BUZZ-Jumps on new drug application acceptance ** FedEx Corp FDX.N: up 13.2% BUZZ-Higher as results beat on pandemic-fueled shipments surge BUZZ-Street View: FedEx benefits from e-commerce growth amid challenges ** Inovio Pharmaceuticals Inc INO.O: down 25.0% BUZZ-Extends fall as brokerages downgrade ** Pebblebrook Hotel Trust PEB.N: up 3.5% BUZZ-Rises on improving occupancy, reduced cash burn forecast ** Exela Technologies Inc XELA.O: down 18.8% BUZZ-Falls on downbeat revenue forecast ** YRC Worldwide Inc YRCW.O: up 84.8% BUZZ-Surges on credit lifeline from U.S. Treasury ** Therapix Biosciences Ltd TRPX.O: down 44.4% BUZZ-Drops on Nasdaq delisting notice The 11 major S&P 500 sectors: Communication Services .N At 12:31 ET, the Dow Jones Industrial Average .DJI was up 0.23% at 25,871.82. up 2.05% Consumer Discretionary
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The top three S&P 500 .PG.INX percentage gainers: ** FedEx Corp , up 13.2% ** Constellation Brands, Inc , up 6.7% ** Amgen Inc , up 6.5% The top three S&P 500 .PL.INX percentage losers: ** HollyFrontier Corp , down 5.2% ** Diamondback Energy Inc , down 5.1% ** Lincoln National Corp , down 5% The top three NYSE .PG.N percentage gainers: ** Innovator Nasdaq 100 Power Buffer ETF , up 63.2 % ** Horizon Global Corp , up 22.7% ** MOGU Inc , up 16.7% The top three NYSE .PL.N percentage losers: ** Navios Maritime Holdings Inc , down 18.6% ** MS Cushing MLP ETN , down 13.8% ** Steelcase Inc SCS.N, down 10.8% The top three Nasdaq .PG.O percentage gainers: ** MYOS RENS Technology Inc , up 174.6% ** Limnl Bioscn Ord , up 113.6 % ** YRC Worldwide Inc , up 84.8% The top three Nasdaq .PL.O percentage losers: ** Polar Power Inc , down 33.5% ** Inovio Pharmaceuticals Inc , down 25% ** Blink Charging Equity Warrant , down 23.1% ** Chiasma Inc CHMA.O: down 13.0% BUZZ-Falls as biopharma co seeks equity ** Steelcase Inc SCS.N: down 10.7% BUZZ-Down after Q1 miss as orders decline amid pandemic ** UniFirst Corp UNF.N: down 3.4% BUZZ-Slumps after Q3 profit miss ** Pfizer Inc PFE.N: up 5.3% BUZZ-Pfizer and BioNTech's trial data drags down rivals in COVID-19 vaccine race [nL4N2E83JR} BUZZ-Pfizer: Up after COVID-19 vaccine shows potential in human trial ** Qualigen Therapeutics Inc QLGN.O: up 31.6% BUZZ-Soars on plans to start sale of COVID-19 antibody test in July ** American Airlines Group Inc AAL.O: up 0.9% ** United Airlines Holdings Inc UAL.O: up 1.9% ** Delta Air Lines Inc DAL.N: up 1.0% ** Southwest Airlines Co LUV.N: up 0.6% ** Hilton Worldwide Holdings Inc HLT.N: up 2.1% ** Marriott International Inc MAR.O: up 1.7% ** Hyatt Hotels Corp H.N: up 2.7% ** Carnival Corp CCL.N: up 1.0% ** Royal Caribbean Cruises Ltd RCL.N: up 2.7% ** Norwegian Cruise Line Holdings Ltd NCLH.N: up 2.6% BUZZ-U.S. airlines, hotel and cruise stocks rise on hopes of COVID-19 vaccine BUZZ-United Airlines: Triples flights in August; shares rise ** Roku Inc ROKU.O: up 6.2% BUZZ-Rises as Peloton streams in ** Arcturus Therapeutics Holdings Inc ARCT.O: up 0.7% BUZZ-Arcturus forms advisory board for COVID-19 vaccine program, shares rise ** General Mills Inc GIS.N: down 2.0% BUZZ-Falls as co flags potential hit to 2021 sales ** Amgen Inc AMGN.O: up 6.6% BUZZ-Touches record high after patent win against Novartis ** OPKO Health Inc OPK.O: up 1.8% BUZZ-Rises to near 2-yr high on large-scale COVID-19 test results ** Beyond Meat Inc BYND.O: up 7.2% BUZZ-Beyond Meat to launch retail sales of patties in China, shares jump ** Denny's Corp DENN.O: down 10.0% BUZZ-Denny's drops on stock offering plans ** Akero Therapeutics Inc AKRO.O: up 29.2% BUZZ-Jumps on positive data from liver disease treatment study ** Travelcenters of America Inc TA.O: down 11.0% BUZZ-Tumbles on stock offering ** T2 Biosystems Inc TTOO.O: up 36.6% BUZZ-Surges after launch of COVID-19 test in U.S. ** Northern Oil and Gas Inc NOG.N: up 6.5% BUZZ-SunTrust upgrades to 'buy', expects spending curbs ** Constellation Brands Inc STZ.N: up 6.8% BUZZ-Gains on first-quarter profit beat ** MediciNova Inc MNOV.O: up 8.9% BUZZ-Jumps on new drug application acceptance ** FedEx Corp FDX.N: up 13.2% BUZZ-Higher as results beat on pandemic-fueled shipments surge BUZZ-Street View: FedEx benefits from e-commerce growth amid challenges ** Inovio Pharmaceuticals Inc INO.O: down 25.0% BUZZ-Extends fall as brokerages downgrade ** Pebblebrook Hotel Trust PEB.N: up 3.5% BUZZ-Rises on improving occupancy, reduced cash burn forecast ** Exela Technologies Inc XELA.O: down 18.8% BUZZ-Falls on downbeat revenue forecast ** YRC Worldwide Inc YRCW.O: up 84.8% BUZZ-Surges on credit lifeline from U.S. Treasury ** Therapix Biosciences Ltd TRPX.O: down 44.4% BUZZ-Drops on Nasdaq delisting notice 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 rose on Wednesday as rising hopes of a COVID-19 vaccine offset fears of another round of lockdowns following a record surge in coronavirus cases in the United States. .N At 12:31 ET, the Dow Jones Industrial Average .DJI was up 0.23% at 25,871.82.
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5593.0
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2020-07-01 00:00:00 UTC
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3 Popular Robinhood Stocks to Own Today
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AAL
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https://www.nasdaq.com/articles/3-popular-robinhood-stocks-to-own-today-2020-07-01
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
This may not be your father’s or grandfather’s stock market. And in some ways brokerage platform Robinhood is proof of that. Then again, as many of the most popular Robinhood stocks can attest, today’s next generation of investors has a lot more in common with their elders than many give them credit for.
Brash brokerage industry upstart Robinhood has a reputation for catering to Millennials. There’s the zero-commission trading to consider, as well as a platform that’s fully in tune with today’s on-the-go and mobile younger generation. And at that age, of course, most of us don’t want to be like our parents. You’re young, fearless and of course, smarter than the generations that preceded you.
Well, that’s the popular version of how many younger adults see themselves. It’s timeless.
As part of that youthful mindset, it isn’t hard to see that the likes of one-time financial brokerage disruptor Charles Schwab (NYSE:SCHW) and its dowdy advertising aren’t reaching the younger generation. Swashbuckling Robinhood has swooped in to steal younger accounts for tomorrow, and beyond, from its clutches.
9 Florida Stocks to Avoid as Coronavirus Rates Spike
But as part of Robinhood’s allure to younger investors and its self-proclaimed mission to democratize finance for all, just what are its customer accounts buying? It turns out the truth — well, almost — looks a good deal like mom and pop investing.
Ford Motor (NYSE:F)
General Electric (NYSE:GE)
Aurora Cannabis (NYSE:ACB)
In the following article, let’s explore three of Robinhood’s top 10 most popular stocks to own and which look ready to steal shares from the bears and give back to tomorrow’s investors.
Robinhood Stocks: Ford (F)
Source: Charts by TradingView
The first of our popular stocks to own according to the crowd-sourced vote at Robinhood are shares of Ford. Nearly 120 years old, this auto manufacturer is parked inside 925,000 accounts at present.
Shares of Ford have proven an awful investment for many of the more seasoned investors out there. The stock’s current dividend-adjusted price is pretty much where it was a quarter of a century ago, well before auto disruptor Tesla (NASDAQ:TSLA) came onto the scene as unwanted competition. But this popular stock may finally be ready to drive higher for the next generation of bulls out there.
Technically, shares have pulled back to retrace a full 50% of its March-to-May rally. The decline has occurred as the stock’s stochastics has formed a bullish crossover pattern out of oversold territory. With the recent low sandwiched in between the 62% – 76% retracement levels from the 2009 financial crisis, Ford stock’s hard times look ready to take a back seat.
General Electric (GE)
Source: Charts by TradingView
General Electric shares are the second of our popular Robinhood stocks to own. It’s the second most dearly held equity with nearly 835,000 customers holding shares in their accounts.
The industrial conglomerate and once longest-standing Dow Jones blue-chip constituent has fallen on harder times in recent years, but is widely seen as a turnaround play in today’s market. Value, anyone? Millennials may be able to talk up their parents or Grandparents on this one as well. However, don’t count famed value Octogenarian Warren Buffett as a fan.
The good news for this popular stock? It’s no secret 2020’s short-lived bear market hasn’t seen Warren at his best. His firm dumped Delta Airlines (NYSE:DAL), American Airlines (NASDAQ:AAL) and the rest of its industry stake near the market’s bottom. He also famously failed to live up to his calling of “buying when others were fearful” during the height of the pandemic this past spring.
Technically speaking, GE’s damaged shares also appear technically in strong position to take flight.
The Top 7 Healthcare Stocks You Should Be Watching
On the monthly price chart, General Electric has confirmed an 18-month double-bottom pattern formed just north of the stock’s 2009 financial crisis low. Now and with a bullishly diverging stochastics indicator also crossing over, this pullback style entry which tested the formation’s first pivot from December 2018 looks like a popular stock to own and buy right now.
Aurora Cannabis (ACB)
Source: Charts by TradingView
The last of our three popular Robinhood stocks are shares of Aurora Cannabis. We’ve dug deep down into 10th position for the Canadian cannabis play, but the stock is only slightly less popular than many household large-capitalization titans. Microsoft (NASDAQ:MSFT), Disney (NYSE:DIS) and Apple (NASDAQ:AAPL) are among those companies in the remaining spots. But is Aurora’s popularity among the company of giants really a surprise?
If investors are comparing market valuations and metrics like profits, Aurora’s acceptance certainly would be. But ACB’s ownership isn’t entirely surprising given it’s our northern neighbor’s second largest cannabis producer. As well, the industry is potentially part of a secular up-and-coming market well-suited to younger investors with higher risk tolerance.
Technically, those investors’ eyes may also like what they’re seeing on the price chart. Shares are showing signs of finally bottoming as indicated by the stock’s massive volume, monthly doji candlestick low established in May. Not that Aurora’s position is unique. The group has been systematically crushed over the past one to two years. Still, given Aurora’s business position and historical precedent of Wall Street sometimes prematurely writing off trends — like the internet back in days of yore — maybe Robinhood’s investors are onto something.
Investment accounts under Christopher Tyler’s management does not own any securities mentioned in this article. The information offered is based upon Christopher Tyler’s observations and strictly intended for educational purposes only; the use of which is the responsibility of the individual. For additional market insights and related musings, follow Chris on Twitter @Options_CAT and StockTwits.
The post 3 Popular Robinhood Stocks to Own Today appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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His firm dumped Delta Airlines (NYSE:DAL), American Airlines (NASDAQ:AAL) and the rest of its industry stake near the market’s bottom. As part of that youthful mindset, it isn’t hard to see that the likes of one-time financial brokerage disruptor Charles Schwab (NYSE:SCHW) and its dowdy advertising aren’t reaching the younger generation. 9 Florida Stocks to Avoid as Coronavirus Rates Spike But as part of Robinhood’s allure to younger investors and its self-proclaimed mission to democratize finance for all, just what are its customer accounts buying?
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His firm dumped Delta Airlines (NYSE:DAL), American Airlines (NASDAQ:AAL) and the rest of its industry stake near the market’s bottom. InvestorPlace - Stock Market News, Stock Advice & Trading Tips This may not be your father’s or grandfather’s stock market. Ford Motor (NYSE:F) General Electric (NYSE:GE) Aurora Cannabis (NYSE:ACB) In the following article, let’s explore three of Robinhood’s top 10 most popular stocks to own and which look ready to steal shares from the bears and give back to tomorrow’s investors.
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His firm dumped Delta Airlines (NYSE:DAL), American Airlines (NASDAQ:AAL) and the rest of its industry stake near the market’s bottom. InvestorPlace - Stock Market News, Stock Advice & Trading Tips This may not be your father’s or grandfather’s stock market. Ford Motor (NYSE:F) General Electric (NYSE:GE) Aurora Cannabis (NYSE:ACB) In the following article, let’s explore three of Robinhood’s top 10 most popular stocks to own and which look ready to steal shares from the bears and give back to tomorrow’s investors.
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His firm dumped Delta Airlines (NYSE:DAL), American Airlines (NASDAQ:AAL) and the rest of its industry stake near the market’s bottom. Ford Motor (NYSE:F) General Electric (NYSE:GE) Aurora Cannabis (NYSE:ACB) In the following article, let’s explore three of Robinhood’s top 10 most popular stocks to own and which look ready to steal shares from the bears and give back to tomorrow’s investors. With the recent low sandwiched in between the 62% – 76% retracement levels from the 2009 financial crisis, Ford stock’s hard times look ready to take a back seat.
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5594.0
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2020-07-01 00:00:00 UTC
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American Airlines warns it's overstaffed by about 8,000 flight attendants
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AAL
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https://www.nasdaq.com/articles/american-airlines-warns-its-overstaffed-by-about-8000-flight-attendants-2020-07-01
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nan
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July 1 (Reuters) - American Airlines Group Inc AAL.O warns it is overstaffed by about 8,000 flight attendants and might reduce its workforce through early retirements and voluntary leaves as the carrier looks to weather a hit to business from the COVID-19 pandemic.
The company will reduce its international and transcontinental crew to the minimum required by the Federal Aviation Administration, plus one flight attendant, effective from Oct. 1, 2020, Jill Surdek, American Airlines' vice-president of flight service, said in a letter to employees on Wednesday.
U.S. carriers have warned that furloughs could take place in October, when the government payroll aid for the airline industry expires, but said they were hoping to avoid them.
"While we hope our customers continue returning to the skies in the coming months, the reality is that this pandemic has changed our business for years to come," Surdek said.
The company said it would initiate early-out programs to minimize the need for furloughs and would address the excess numbers in the coming weeks.
Last week, American Airlines said that avoiding furloughs will be difficult and it expects to have between 10% and 20% more workers than needed in July 2021.
Earlier in the day, rival JetBlue JBLU.O and pilots' union Air Line Pilots Association (ALPA), reached an agreement to avoid involuntary furlough until May 1, 2021.
Separately, American Airlines said on Wednesday it expects its summer 2021 long-haul international capacity to be down 25% compared with 2019, as it sees significantly lesser business from its international market. (https://bit.ly/38nK3g2)
"The COVID-19 has forced us to re-evaluate our network," Chief Revenue Officer Vasu Raja said, adding that the company will have a significantly smaller international network in the year ahead.
The carrier had initiated a phased suspension of nearly all long-haul international flights in March, as the airline industry took a hit from reduced demand and travel restrictions due to the ongoing COVID-19 outbreak.
(Reporting by Radhika Anilkumar in Bengaluru; Editing by Sherry Jacob-Phillips)
((Radhika.Anilkumar@thomsonreuters.com; +91 8067490824;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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July 1 (Reuters) - American Airlines Group Inc AAL.O warns it is overstaffed by about 8,000 flight attendants and might reduce its workforce through early retirements and voluntary leaves as the carrier looks to weather a hit to business from the COVID-19 pandemic. U.S. carriers have warned that furloughs could take place in October, when the government payroll aid for the airline industry expires, but said they were hoping to avoid them. The carrier had initiated a phased suspension of nearly all long-haul international flights in March, as the airline industry took a hit from reduced demand and travel restrictions due to the ongoing COVID-19 outbreak.
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July 1 (Reuters) - American Airlines Group Inc AAL.O warns it is overstaffed by about 8,000 flight attendants and might reduce its workforce through early retirements and voluntary leaves as the carrier looks to weather a hit to business from the COVID-19 pandemic. The company will reduce its international and transcontinental crew to the minimum required by the Federal Aviation Administration, plus one flight attendant, effective from Oct. 1, 2020, Jill Surdek, American Airlines' vice-president of flight service, said in a letter to employees on Wednesday. Last week, American Airlines said that avoiding furloughs will be difficult and it expects to have between 10% and 20% more workers than needed in July 2021.
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July 1 (Reuters) - American Airlines Group Inc AAL.O warns it is overstaffed by about 8,000 flight attendants and might reduce its workforce through early retirements and voluntary leaves as the carrier looks to weather a hit to business from the COVID-19 pandemic. The company will reduce its international and transcontinental crew to the minimum required by the Federal Aviation Administration, plus one flight attendant, effective from Oct. 1, 2020, Jill Surdek, American Airlines' vice-president of flight service, said in a letter to employees on Wednesday. Separately, American Airlines said on Wednesday it expects its summer 2021 long-haul international capacity to be down 25% compared with 2019, as it sees significantly lesser business from its international market.
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July 1 (Reuters) - American Airlines Group Inc AAL.O warns it is overstaffed by about 8,000 flight attendants and might reduce its workforce through early retirements and voluntary leaves as the carrier looks to weather a hit to business from the COVID-19 pandemic. U.S. carriers have warned that furloughs could take place in October, when the government payroll aid for the airline industry expires, but said they were hoping to avoid them. Last week, American Airlines said that avoiding furloughs will be difficult and it expects to have between 10% and 20% more workers than needed in July 2021.
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5595.0
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2020-06-30 00:00:00 UTC
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American Airlines Finally Looks Ready for Liftoff
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https://www.nasdaq.com/articles/american-airlines-finally-looks-ready-for-liftoff-2020-06-30
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Shares of American Airlines (NASDAQ:AAL) seem to have finally found some support after a sharp descent. AAL stock traded all the way up to $22.80 intraday on June 5, only to subsequently plunge back to the $12.50 area three weeks later.
Source: GagliardiPhotography / Shutterstock.com
Certainly some of the selloff was warranted, given the misguided optimism that drove the previous rally. In a similar fashion, the pervasive pessimism has taken AAL down too far, too fast.
Look for American Airlines to begin to ascend over the coming weeks.
Looking Ahead in American Airlines
Currently the technicals reached oversold readings but are beginning to improve. The 5-day RSI dropped below 30 but has since turned higher. Previous times this occurred marked significant short-term lows in the stock. MACD also hit oversold levels but is starting to improve. Momentum crashed to deeply negative territory but has regained most of the plunge and looks poised to turn positive.
Click to Enlarge Most importantly, AAL stock once again held the crucial $12.50 support area. Yesterday saw a big reversal day with American briefly trading down to $12.02 only to pivot and close higher on the day at $13.32. This type of price action is many times a sign that the sellers have become exhausted and the buyers have taken control. It is especially powerful given that it took place at a major support area.
Load factors, a key component for the major carriers, has shown a tremendous rebound from the corona virus lows. It shows the percentage of available seats that passengers have booked. The chart below shows that load factors are approaching levels near 75%. Although they are still below the 80% area seen recently, it is a dramatic improvement from just a month ago. This should provide some semblance of sanity for airline stocks going forward.
7 Exciting Robinhood Stocks Investors Should Keep An Eye On
Click to Enlarge Much of the increased load factor can be attributed to airlines being able to cancel flights that they previously were bound to fly. This rule was put in place for the airlines to qualify for the $50 billion dollar federal aid package. The restrictions have been eased lately. Airlines are able to cancel and consolidate flights to lower their costs to survive.
American did announce earlier this month that it will be adding back some domestic flights in July as passenger demand has picked up. Average daily passenger numbers improved to more than 100,00 in late May from just 32,000 in April. American Airlines is expected to fly more than 55% of their July 2019 schedule as summer travel increases.
In my previous post on AAL stock from June 10, I had a decidedly bearish outlook for American. It had gotten to extremely overbought levels on a technical basis and looked prime for a pullback. I recommended selling a bear call spread to take a guardedly bearish position. The trade proved to be profitable as AAL stock began to fall from those lofty levels.
Now my position has turned somewhat bullish, as the technicals reached oversold levels and support held. Implied volatility (IV) for AAL options has tempered somewhat from the prior frothy levels nearing 150, but is still well over 100. This makes option selling strategies still very viable. So to position for lift off in AAL stock a bullish put credit spred makes sense.
AAL Stock Trade Idea
Sell the AAL July $12/$10 put spread for a 45-cent net credit
Maximum gain on the trade is $45 per spread with maximum risk of $155 per spread. Return on risk is 29%. The short $12 strike is below the major support area at $12.50 and provides a nearly 10% downside cushion to the current level of AAL stock.
As of this writing, Tim Biggam did not hold a position in any of the aforementioned securities. Anyone interested in finding out more about option-based strategies or for a weekly option and volatility newsletter can visit the Options and Volatility Newsletter website.
The post American Airlines Finally Looks Ready for Liftoff 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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The short $12 strike is below the major support area at $12.50 and provides a nearly 10% downside cushion to the current level of AAL stock. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Shares of American Airlines (NASDAQ:AAL) seem to have finally found some support after a sharp descent. AAL stock traded all the way up to $22.80 intraday on June 5, only to subsequently plunge back to the $12.50 area three weeks later.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Shares of American Airlines (NASDAQ:AAL) seem to have finally found some support after a sharp descent. AAL Stock Trade Idea Sell the AAL July $12/$10 put spread for a 45-cent net credit Maximum gain on the trade is $45 per spread with maximum risk of $155 per spread. AAL stock traded all the way up to $22.80 intraday on June 5, only to subsequently plunge back to the $12.50 area three weeks later.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Shares of American Airlines (NASDAQ:AAL) seem to have finally found some support after a sharp descent. AAL Stock Trade Idea Sell the AAL July $12/$10 put spread for a 45-cent net credit Maximum gain on the trade is $45 per spread with maximum risk of $155 per spread. The short $12 strike is below the major support area at $12.50 and provides a nearly 10% downside cushion to the current level of AAL stock.
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AAL stock traded all the way up to $22.80 intraday on June 5, only to subsequently plunge back to the $12.50 area three weeks later. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Shares of American Airlines (NASDAQ:AAL) seem to have finally found some support after a sharp descent. In a similar fashion, the pervasive pessimism has taken AAL down too far, too fast.
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5596.0
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2020-06-30 00:00:00 UTC
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U.S. top medical experts rebuke American Airlines for filling planes
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https://www.nasdaq.com/articles/u.s.-top-medical-experts-rebuke-american-airlines-for-filling-planes-2020-06-30
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By David Shepardson and Tracy Rucinski
WASHINGTON/CHICAGO, June 30 (Reuters) - Top U.S. health experts on Tuesday criticized American Airlines AAL.O and other carriers for filling planes to capacity, saying it sends the wrong message as the country grapples with a rise in coronavirus outbreaks.
American Airlines said on Friday it will no longer restrict the number of seats sold on flights beginning on Wednesday. United Airlines UAL.O is also selling planes to capacity though both notify passengers of full flights and allow them to re-book.
Robert Redfield, director of the U.S. Centers for Disease Control and Prevention (CDC), said at a Senate hearing that there was "substantial disappointment" with American, given many airlines are keeping middle seats open.
"We don't think it's the right message," Redfield said.
Some lawmakers want Congress to require open seats on commercial flights.
Among other large U.S. carriers, Delta Air Lines DAL.N and Southwest Airlines LUV.N are limiting the number of seats sold on their flights through at least September.
American Airlines said on Tuesday it has "multiple layers of protection in place ... including required face coverings, enhanced cleaning procedures, and a pre-flight COVID-19 symptom checklist."
The company said it knows "customers are placing their trust in us to make every aspect of their journey safe, and we are committed to doing just that."
Senator Bernie Sanders wants the CDC to tell airlines that filling planes is "unacceptable behavior - they are endangering the lives of the American people."
COVID-19 cases more than doubled in June in at least 10 U.S. states, including Texas and Florida, a Reuters tally showed.
Redfield urged individuals to social distance on airplanes, trains and buses "to the degree that's feasible and at least have a reliable face covering."
Also addressing the panel, top U.S. infectious diseases official Anthony Fauci called American's decision "of concern."
U.S. airlines recently stepped up enforcement of mask wearing on flights. This week they also said they will begin requiring passengers to disclose during check-in whether they have any COVID-19 symptoms or been exposed to the virus within 14 days.
They urged government-administered temperature checks during the airport screening process, but the Transportation Security Administration (TSA) said on Tuesday that no decision has been made.
While passenger traffic has been severely depressed due to the pandemic, people screened by TSA reached 633,810 on Sunday. That was the most since March 19 but significantly below the 2.6 million people screened a year earlier.
(Reporting by David Shepardson and Tracy Rucinski; Editing by Bill Berkrot)
((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 David Shepardson and Tracy Rucinski WASHINGTON/CHICAGO, June 30 (Reuters) - Top U.S. health experts on Tuesday criticized American Airlines AAL.O and other carriers for filling planes to capacity, saying it sends the wrong message as the country grapples with a rise in coronavirus outbreaks. Robert Redfield, director of the U.S. Centers for Disease Control and Prevention (CDC), said at a Senate hearing that there was "substantial disappointment" with American, given many airlines are keeping middle seats open. American Airlines said on Tuesday it has "multiple layers of protection in place ... including required face coverings, enhanced cleaning procedures, and a pre-flight COVID-19 symptom checklist."
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By David Shepardson and Tracy Rucinski WASHINGTON/CHICAGO, June 30 (Reuters) - Top U.S. health experts on Tuesday criticized American Airlines AAL.O and other carriers for filling planes to capacity, saying it sends the wrong message as the country grapples with a rise in coronavirus outbreaks. American Airlines said on Friday it will no longer restrict the number of seats sold on flights beginning on Wednesday. American Airlines said on Tuesday it has "multiple layers of protection in place ... including required face coverings, enhanced cleaning procedures, and a pre-flight COVID-19 symptom checklist."
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By David Shepardson and Tracy Rucinski WASHINGTON/CHICAGO, June 30 (Reuters) - Top U.S. health experts on Tuesday criticized American Airlines AAL.O and other carriers for filling planes to capacity, saying it sends the wrong message as the country grapples with a rise in coronavirus outbreaks. Robert Redfield, director of the U.S. Centers for Disease Control and Prevention (CDC), said at a Senate hearing that there was "substantial disappointment" with American, given many airlines are keeping middle seats open. American Airlines said on Tuesday it has "multiple layers of protection in place ... including required face coverings, enhanced cleaning procedures, and a pre-flight COVID-19 symptom checklist."
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By David Shepardson and Tracy Rucinski WASHINGTON/CHICAGO, June 30 (Reuters) - Top U.S. health experts on Tuesday criticized American Airlines AAL.O and other carriers for filling planes to capacity, saying it sends the wrong message as the country grapples with a rise in coronavirus outbreaks. American Airlines said on Tuesday it has "multiple layers of protection in place ... including required face coverings, enhanced cleaning procedures, and a pre-flight COVID-19 symptom checklist." While passenger traffic has been severely depressed due to the pandemic, people screened by TSA reached 633,810 on Sunday.
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5597.0
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2020-06-30 00:00:00 UTC
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If You Must Bet on the Airlines, Do It Through U.S. Global Jets ETF
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AAL
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https://www.nasdaq.com/articles/if-you-must-bet-on-the-airlines-do-it-through-u.s.-global-jets-etf-2020-06-30
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Earlier in June, InvestorPlace contributor Matt McCall suggested that investors shouldn’t be tempted by the U.S. Global Jets ETF (NYSEARCA:JETS) because the airline industry is in for a long and painful ride.
Source: Shutterstock
It’s an argument that’s hard to question, especially when it appears America is about to see a return of further community lockdowns as the novel coronavirus spreads.
Much of what McCall says in his article is the stuff many of us have written about in recent weeks. Business is bleak.
Earnings Are Going to Suck
“Consider that Q2 only has a few weeks left and investors will realize that the quarter is pretty much a lost cause. Q3 will have low traffic, too, at least initially. As Delta Air Lines (NYSE:DAL), Southwest Airlines (NYSE:LUV), and others continue to burn cash, the financial strain won’t go unnoticed, even though these companies will avoid going belly up,” McCall wrote on June 4.
7 of the Newest Stocks That Made Good on Their IPOs
He’s 100% correct. Investors are looking way ahead with their bets on airlines, forgetting that the future doesn’t come if their investment enters Chapter 11.
However, where I disagree with McCall has to do with his assessment of the ETFs holdings. He believes the quality of the airlines in the top holdings makes it a less attractive investment.
McCall’s correct that Southwest is the cream of the crop in the airline industry. However, I would not put Delta in the same category. It grew its earnings in recent years on the back of an aging fleet and through the magic of share repurchases. Delta’s got a lot more in common with American Airlines (NASDAQ:AAL) and United Airlines (NASDAQ:UAL) than he realizes.
JETS ETF Composition
In a perfect world, I would prefer that JETS was an equal-weighted ETF where the biggest isn’t at the front of the bus. Let each holding’s quarterly performance speak for itself. A problem with cap-weighted ETFs is that they often turn out to be nothing more than a bet on one or two stocks, which defeats the purpose of owning a portfolio of stocks.
Take the Vanguard Consumer Discretionary ETF (NYSEARCA:VCR). That isn’t a bet on consumer discretionary stocks; it’s a bet on Amazon (NASDAQ:AMZN), which accounts for 21.21% of the ETFs portfolio. The Fidelity MSCI Consumer Discretionary ETF (NYSEARCA:FDIS) is even worse. Amazon accounts for 33.65% of the portfolio. The second-largest holding, Home Depot (NYSE:HD), has a weighting of 7.8%, one-quarter the weighting of Amazon.
In the case of JETS, America’s top four airlines: Southwest, Delta, United, and American account for 10.42%, 9.93%, 9.65%, and 8.66%, of the portfolio, respectively. They are the top four holdings in JETS. Eight out of the top 10 holdings are airlines.
The top 10 holdings account for 61% of the ETFs $1.2 billion in total assets. The ETFs 30 other holdings account for the remaining 39%.
I don’t think you could draw up a better game plan for somebody looking to benefit from a resurgence in air travel than to buy some shares of JETS. Millennials might do some dumb things — who doesn’t? — but buying JETS is not one of them if, and it’s a big if, their reason for doing so is they believe air travel will eventually return to normal, historical volumes.
Who benefits most from a return to regular air travel? The airlines and related industries, such as hospitality and manufacturing.
Now, if you think airline travel won’t ever return to past volumes because of the pandemic, then JETS probably isn’t any better investment than buying Southwest, which I believe is the best of the bunch.
The Bottom Line
I continue to believe that the good times in the markets we’ve experienced since late March likely are going to come to an end with another painful correction like the one we saw in March. I don’t have a crystal ball. I don’t know when it will happen. Maybe it won’t.
However, I believe the JETS ETF has managed to grow to $1 billion+ in assets in 2020, precisely because it was designed for just this type of scenario.
I still believe the airline stocks are a risk, but if you’re going to make a bet on their rebounding at some point, JETS is unquestionably the smart way to play it.
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 Must Bet on the Airlines, Do It Through U.S. Global Jets ETF 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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Delta’s got a lot more in common with American Airlines (NASDAQ:AAL) and United Airlines (NASDAQ:UAL) than he realizes. Source: Shutterstock It’s an argument that’s hard to question, especially when it appears America is about to see a return of further community lockdowns as the novel coronavirus spreads. Now, if you think airline travel won’t ever return to past volumes because of the pandemic, then JETS probably isn’t any better investment than buying Southwest, which I believe is the best of the bunch.
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Delta’s got a lot more in common with American Airlines (NASDAQ:AAL) and United Airlines (NASDAQ:UAL) than he realizes. Global Jets ETF (NYSEARCA:JETS) because the airline industry is in for a long and painful ride. As Delta Air Lines (NYSE:DAL), Southwest Airlines (NYSE:LUV), and others continue to burn cash, the financial strain won’t go unnoticed, even though these companies will avoid going belly up,” McCall wrote on June 4.
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Delta’s got a lot more in common with American Airlines (NASDAQ:AAL) and United Airlines (NASDAQ:UAL) than he realizes. Global Jets ETF (NYSEARCA:JETS) because the airline industry is in for a long and painful ride. That isn’t a bet on consumer discretionary stocks; it’s a bet on Amazon (NASDAQ:AMZN), which accounts for 21.21% of the ETFs portfolio.
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Delta’s got a lot more in common with American Airlines (NASDAQ:AAL) and United Airlines (NASDAQ:UAL) than he realizes. That isn’t a bet on consumer discretionary stocks; it’s a bet on Amazon (NASDAQ:AMZN), which accounts for 21.21% of the ETFs portfolio. Now, if you think airline travel won’t ever return to past volumes because of the pandemic, then JETS probably isn’t any better investment than buying Southwest, which I believe is the best of the bunch.
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5598.0
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2020-06-29 00:00:00 UTC
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10 Hot Stocks Young Investors Bought as Coronavirus Hit
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https://www.nasdaq.com/articles/10-hot-stocks-young-investors-bought-as-coronavirus-hit-2020-06-30
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
[Editor’s Note: “10 Hot Stocks Young Investors Bought as Coronavirus Hit” was originally published in April 2020. It has since been updated to include the most relevant information.]
Believe it or not, “Robinhood investors” — or young investors that, as a side gig, buy and sell stocks, commission-free, through the Robinhood trading app — are beating hedge fund managers in 2020. And not by a little. By a lot.
How?
They heeded the advice of Warren Buffet, got greedy when everyone else was fearful and bought the March coronavirus dip in the stock market with both hands.
In an interview with CNBC’s Jim Cramer, Robinhood’s co-Chief Executive Officer said that buying activity on the trading platform rose 60% month-over-month in March as young investors went on a stock market shopping spree during the market’s rout.
That shopping spree has, of course, paid off. The S&P 500 is up more than 40% from its March lows — marking its biggest 50-day rally ever.
7 of the Best Large-Cap Stocks to Buy Now
To that end, here are the hot stocks that young investors bought big in March and have used to beat Wall Street pros over the past few months:
Inovio (NASDAQ:INO)
Ford (NYSE:F)
American Airlines (NYSE:AAL)
Boeing (NYSE:BA)
Carnival (NYSE:CCL)
General Electric (NYSE:GE)
Microsoft (NASDAQ:MSFT)
Disney (NYSE:DIS)
Aurora (NYSE:ACB)
Tesla (NASDAQ:TSLA)
Hot Stocks for Young Investors: Inovio (INO)
Source: Ascannio / Shutterstock.com
Young investors didn’t just buy the coronavirus dip. They also chased the rally in some red-hot coronavirus stocks, including bio-pharmaceutical company Inovio.
Inovio burst onto the scene amid the coronavirus pandemic as the company developed a possible Covid-19 vaccine, supposedly within just a few hours. That possible vaccine is widely considered to be one of the leading vaccine candidates out there right now, and is presently going through clinical trials. If those trials yield positive results, then this tiny stock could fly higher over the next 12 months.
Young investors were probably attracted to Inovio for two reasons. One, the huge upside potential in the stock in the event that the company’s Covid-19 vaccine works. Two, the low price tag. INO stock has, for the most part, featured a sub-$10 price tag over the past few months (though it doesn’t anymore).
I’d caution against chasing this rally in INO stock.
There are a lot of companies out there developing potential vaccines and treatments for Covid-19. Almost all of them have red hot stocks right now. But only a few of them will make it through clinical trials, and actually produce any revenue or profit from these vaccines and treatments. As such, the risk-reward profile on INO stock seems asymmetrically skewed towards the downside at the current moment.
Ford (F)
Source: Vitaliy Karimov / Shutterstock.com
One beaten-up stock that young investors bought on the coronavirus dip was Ford.
The U.S. automaker saw its stock price crumble from $9 in early February, to below $4 in late March. Young investors were likely attracted to buy this dip on the idea that: 1) Ford is a huge car company that will survive this crisis, 2) automobile demand trends will rebound once pandemic fears fade, and 3) the stock slipped to dirt-cheap levels not seen since the Financial Crisis.
I agree on all fronts. Ford stock is a buy here. And I’d like to add one very important point.
Led by the Mach-E, Ford is unveiling a broad portfolio of electric vehicles over the next few years. This electrification of Ford’s antiquated vehicle roster will re-charge demand trends, and spark several years of positive volume, revenue, and profit growth.
7 of the Best Large-Cap Stocks to Buy Now
Ford hasn’t seen a streak of growth like that for a long time, and it should push this stock way higher by 2023/24.
Stocks for Young Investors: American Airlines (AAL)
Source: GagliardiPhotography / Shutterstock.com
Another bottom fishing favorite of young investors in March was American Airlines.
Much like Ford stock, American Airlines stock was killed in March as the coronavirus pandemic brought the global economy to a screeching halt. But, as they did with Ford stock, young investors bought the dip in American Airlines stock, probably because they see airline demand rebounding once the pandemic fades.
That will happen.
Air travel is a huge part of our society. It’s not going away anytime soon. Once this pandemic passes, air travel demand trends will gradually recover. Within a few quarters, they will be back to fully normal. Indeed, this is already happening. U.S. air travel traffic is up more than 500% from its early April lows.
Also of note: the airlines are getting bailed out by the U.S. government. There is no insolvency risk here. American Airlines will survive this crisis. Sure, growth will be hampered by restrictions on the other side. But, with insolvency risks mitigated and a potential demand rebound on the horizon, AAL stock does look too cheap for its own good.
Boeing (BA)
Source: Alex JW Robinson / Shutterstock.com
Yet another beaten-up stock which young investors bought on the dip in March was Boeing.
The airplane maker and aerospace and defense contractor saw its shares get decimated in March. BA stock was flying high around $350 in early February. By late March, it was trading below $90.
Young investors bought the dip. And reasonably so. Government aid will prevent this company from going under. Air travel demand will rebound once the pandemic passes, leading to increased demand for Boeing airplanes. Revenues and profits — although they will be wiped out this year — should rebound in 2021, and get back on a steady growth path over the subsequent few years.
7 of the Best Large-Cap Stocks to Buy Now
As all that happens, BA stock will rebound. Perhaps not back to $350. The stock was overvalued up there. But BA stock does have visible runway to $250-plus prices.
Stocks for Young Investors: Carnival (CCL)
Source: Ruth Peterkin / Shutterstock.com
Cruise line operator Carnival was another decimated stock which young investors bought in March.
The cruise line industry has arguably been the hardest hit industry from the coronavirus pandemic. Not only has the pandemic brought the global economy to a screeching halt, killed discretionary spend, and kept consumers in their homes, but it has also been disproportionately affiliated with cruises, thanks to the plethora of cruise ships which had to undergo quarantine and were kept at sea for weeks.
As a result, cruise stocks have fallen off a cliff. Carnival, the biggest U.S. cruise line operator, has been no exception. CCL stock dropped from $40 highs in mid-February, to below $8 in late March.
Young investors bought the dip. If you have time on your side, I’d follow them on this trade. Cruise demand will be impaired for the next few years. But it will recover, because consumers will forget about this pandemic and because they have a strong appetite for travel and experiences.
As it does recover, cruise stocks will bounce back, and CCL stock will lead that recovery rally.
To be sure, this recovery will take longer than the airline or hotel recovery. So, if you don’t have time on your side, forget CCL stock, and go with a hotel stock or an airline stock for your potential rebound candidate.
General Electric (GE)
Source: Sundry Photography / Shutterstock.com
Industrial conglomerate General Electric was just starting to get its groove back in late 2019 and early 2020. GE stock rose from $8 in Aug. 2019, to $13 in Feb. 2020, as the company’s cost-cutting focused turnaround initiatives were starting to bear fruit.
Then the coronavirus pandemic struck. The global industrial economy came to a screeching halt. GE’s already heavily levered balance sheet came under tremendous financial pressure. And GE stock sunk… to new lows below $6.
Young investors think that GE stock will get its groove back. They bought the dip in March.
I agree with the young investors on this one. The balance sheet risks are enormous. But I think GE has enough assets and financial levers they can pull to weather this storm and avoid insolvency. Assuming they do, then industrial economic trends will recover over the next few quarters, GE’s businesses will rebound, and the big GE turnaround that was starting to take hold in late 2019, will resume in late 2020.
7 of the Best Large-Cap Stocks to Buy Now
As it does, GE stock will bounce back.
Stocks for Young Investors: Microsoft (MSFT)
Source: NYCStock / Shutterstock.com
Young investors saw March weakness in tech giant Microsoft as a long-term buying opportunity — and they are right.
Of course, the coronavirus pandemic creates near-term headwinds for Microsoft. Consumer and corporate IT spend have dried up.
But, longer-term, the pandemic actually creates multi-year tailwinds for Microsoft, by accelerating the consumer and corporate pivots towards cloud-hosted services. That is, the pandemic has been a not-so-subtle reminder that the physical world can be shut down at any moment by a pandemic, and therefore, everyone and every corporation needs to be able to work digitally.
In order to do that, everyone and every corporation needs to be on the cloud. Consequently, over the next few years, there should be a demand surge of Microsoft’s cloud infrastructure, productivity, and communications tools, like Azure, Office 365, and Microsoft Teams.
This demand surge will propel Microsoft’s revenues, profits, and stock price all materially higher.
Disney (DIS)
Source: nikkimeel / Shutterstock.com
Young investors didn’t shy away from the big dip in Disney stock in March.
And they shouldn’t have. Disney stock down around $100 is a great long-term buy.
Yes, most of Disney’s businesses are getting hammered by the pandemic. Cruise lines aren’t operating. Theme parks are closed. So are movie theaters. TV advertising budgets have been slashed. Everywhere you look, the pandemic has hurt — and altogether killed in some cases — Disney’s various revenue streams.
This won’t last forever. The pandemic will pass. When it does, Disney’s cruises will be back up and running. The theme parks will be as busy as ever. Movie theaters will re-open (indeed, they are already re-opening in some states). TV advertising will rebound.
In the meantime, Disney’s new streaming service — Disney+ — has been a huge success, piling up 50 million subscriber in 5 months. This big streaming growth, coupled with a fortified balance sheet, will help Disney weather the coronavirus storm over the next few months.
7 of the Best Large-Cap Stocks to Buy Now
Big picture: DIS stock should stabilize here around $100, before rebounding big in the back-half of 2020 as the global economy recovers from this pandemic.
Stocks for Young Investors: Aurora (ACB)
Source: Shutterstock
Young investors didn’t forget about pot stocks during the coronavirus pandemic. Instead, they bought the dip in pot stocks, especially in Aurora stock.
I like this bullishness on pot stocks. I broadly believe that the cannabis sector is due for a big rebound in the second half of 2020.
Once the pandemic passes, new vapes and edibles products coupled with a more aggressive retail store opening process in Canada will spark accelerated demand growth. Concurrently, production cuts from the industry’s major producers will curb the market’s supply glut. Rising demand plus falling supply is a recipe for rising revenues, expanding margins, and narrowing losses across the whole industry.
This big rebound has already started. ACB stock is up a jaw-dropping 230% over the past few weeks on the back of explosive third quarter earnings which included accelerating revenue growth, expanding margins, and narrowing losses.
This big rally in ACB stock will continue. Other pot stocks, like Canopy Growth (NYSE:CGC) and Cronos (NASDAQ:CRON), will rally big, too. This whole category is due for big gains in the second-half of 2020 on the back of materially improving fundamentals.
Tesla (TSLA)
Source: Ivan Marc / Shutterstock.com
Last, but not least, on this list of hot stocks that young investors bought big in March is Tesla.
So far, dip-buying Tesla in March has been the perfect call. Tesla stock dropped to $350 in March. Today, shares trade around $1,000.
Going forward, here’s my two cents: buy TSLA stock on dips below $800, and hold for the long haul.
Tesla is a long-term winner. Electric vehicles are the future of automobile transportation. Tesla is just miles ahead in the electric vehicle game when its comes to technology, branding, production capability, and much more. As such, this company is the first inning of turning into one of the world’s largest — if not the largest — automobile company in the world. For that reason, TSLA stock is worth holding for the long haul.
7 of the Best Large-Cap Stocks to Buy Now
But price matters. And above $800, valuation is a slight issue for Tesla stock. As such, buy the stock on dips below $800, and hold for the long haul.
Luke Lango is a Markets Analyst for InvestorPlace. He has been professionally analyzing stocks for several years, previously working at various hedge funds and currently running his own investment fund in San Diego. A Caltech graduate, Luke has consistently been rated one of the world’s top stock pickers by various other analysts and platforms, and has developed a reputation for leveraging his technology background to identify growth stocks that deliver outstanding returns. Luke is also the founder of Fantastic, a social discovery company backed by an LA-based internet venture firm. As of this writing, he was long MSFT, TSLA, AAL, and CGC.
The post 10 Hot Stocks Young Investors Bought as Coronavirus Hit 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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7 of the Best Large-Cap Stocks to Buy Now To that end, here are the hot stocks that young investors bought big in March and have used to beat Wall Street pros over the past few months: Inovio (NASDAQ:INO) Ford (NYSE:F) American Airlines (NYSE:AAL) Boeing (NYSE:BA) Carnival (NYSE:CCL) General Electric (NYSE:GE) Microsoft (NASDAQ:MSFT) Disney (NYSE:DIS) Aurora (NYSE:ACB) Tesla (NASDAQ:TSLA) Hot Stocks for Young Investors: Inovio (INO) Source: Ascannio / Shutterstock.com Young investors didn’t just buy the coronavirus dip. Stocks for Young Investors: American Airlines (AAL) Source: GagliardiPhotography / Shutterstock.com Another bottom fishing favorite of young investors in March was American Airlines. But, with insolvency risks mitigated and a potential demand rebound on the horizon, AAL stock does look too cheap for its own good.
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7 of the Best Large-Cap Stocks to Buy Now To that end, here are the hot stocks that young investors bought big in March and have used to beat Wall Street pros over the past few months: Inovio (NASDAQ:INO) Ford (NYSE:F) American Airlines (NYSE:AAL) Boeing (NYSE:BA) Carnival (NYSE:CCL) General Electric (NYSE:GE) Microsoft (NASDAQ:MSFT) Disney (NYSE:DIS) Aurora (NYSE:ACB) Tesla (NASDAQ:TSLA) Hot Stocks for Young Investors: Inovio (INO) Source: Ascannio / Shutterstock.com Young investors didn’t just buy the coronavirus dip. Stocks for Young Investors: American Airlines (AAL) Source: GagliardiPhotography / Shutterstock.com Another bottom fishing favorite of young investors in March was American Airlines. But, with insolvency risks mitigated and a potential demand rebound on the horizon, AAL stock does look too cheap for its own good.
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7 of the Best Large-Cap Stocks to Buy Now To that end, here are the hot stocks that young investors bought big in March and have used to beat Wall Street pros over the past few months: Inovio (NASDAQ:INO) Ford (NYSE:F) American Airlines (NYSE:AAL) Boeing (NYSE:BA) Carnival (NYSE:CCL) General Electric (NYSE:GE) Microsoft (NASDAQ:MSFT) Disney (NYSE:DIS) Aurora (NYSE:ACB) Tesla (NASDAQ:TSLA) Hot Stocks for Young Investors: Inovio (INO) Source: Ascannio / Shutterstock.com Young investors didn’t just buy the coronavirus dip. Stocks for Young Investors: American Airlines (AAL) Source: GagliardiPhotography / Shutterstock.com Another bottom fishing favorite of young investors in March was American Airlines. But, with insolvency risks mitigated and a potential demand rebound on the horizon, AAL stock does look too cheap for its own good.
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7 of the Best Large-Cap Stocks to Buy Now To that end, here are the hot stocks that young investors bought big in March and have used to beat Wall Street pros over the past few months: Inovio (NASDAQ:INO) Ford (NYSE:F) American Airlines (NYSE:AAL) Boeing (NYSE:BA) Carnival (NYSE:CCL) General Electric (NYSE:GE) Microsoft (NASDAQ:MSFT) Disney (NYSE:DIS) Aurora (NYSE:ACB) Tesla (NASDAQ:TSLA) Hot Stocks for Young Investors: Inovio (INO) Source: Ascannio / Shutterstock.com Young investors didn’t just buy the coronavirus dip. Stocks for Young Investors: American Airlines (AAL) Source: GagliardiPhotography / Shutterstock.com Another bottom fishing favorite of young investors in March was American Airlines. But, with insolvency risks mitigated and a potential demand rebound on the horizon, AAL stock does look too cheap for its own good.
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2020-06-29 00:00:00 UTC
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Why Day-Trading Doesn't Work
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AAL
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https://www.nasdaq.com/articles/why-day-trading-doesnt-work-2020-06-30
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In this episode of Motley Fool Answers, Alison Southwick chats with Motley Fool contributor Matt Frankel and Fool retirement expert Robert Brokamp about the perils of day-trading and swing trading. They show how Robinhood can be an excellent tool when used the right way and the importance of research and informed decision-making while investing in stocks. Learn about the many pitfalls of day-trading and how historically it hasn't worked 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.
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This video was recorded on June 23, 2020.
Alison Southwick: This is Motley Fool Answers. I'm Alison Southwick, and I'm joined, as always, by Robert "go big or go" Brokamp. Hey, Robert, how are you doing?
Robert Brokamp: Swimmingly, Alison; how are you?
Southwick: In this week's episode we're joined by Motley Fool contributor, Matt Frankel, to talk about the rise of the Robinhood trader. All that and more, on this week's episode.
So, Bro, what's up?
Brokamp: Well, on this show, Alison, I have mentioned several times, probably, that my favorite investing book of all time is Stocks for the Long Run by professor Jeremy Siegel, a professor at the Wharton Business School. It's a great book in terms of emphasizing the long-term benefit of stocks, how they outperform bonds and cash, but also has a lot of really interesting history, history of the Fed, history of the Great Depression, so all around a great book. So, I was excited to see professor Siegel as a guest on a podcast that I listen to regularly, it's the Masters in Business podcast with host Barry Ritholtz.
It was interesting because I think Siegel explained something that is a key difference between the Great Recession of 2007-2009 and what's going on now. You may remember, of course, the Fed did a lot back then in 2007-2009. We were all worried about inflation taking off with all the stimulus, but it didn't happen. Siegel makes the point that all the stimulus that happened in 2007-2009 went to the banks, and then the banks held onto it. They didn't lend it out, they kept it in reserve, because they were all worried about themselves going under, it didn't actually make it into people's pockets. This time it's different. We talked about it in the last episode how the savings rate has jumped to 33% and how banks have noticed this 20%, 30%, 40% increase in the balances in bank accounts. The stimulus is making it into people's pockets. And Siegel thinks that's going to make this recovery look very different.
First of all, he thinks that's why the stock market has recovered, because at some point, the stock market recognizes that things will go back to normal and people are going to have all this money to spend, it is going to be very stimulative. So, he predicts basically three things that are going to happen because of this. At least I boil it down to three things. No. 1, the bull market in bonds is over, according to Jeremy Siegel. So, back in the early '80s, the 10-year Treasury hit almost 16% and has gradually gone down to where in March it was 0.5%. When interest rates go down, bond prices go up. To that point, if you look over the last 40 years, bonds have actually returned about the same as stocks. He says, it's over. He says, that that point where we hit in March at 0.5% on the 10-year Treasury, not only is that the low for this cycle, that's the low of our lifetimes. We're not going to see 10-year Treasury hit that low again, they're going to go up 2%, 3%, 4%, maybe, probably closer to 3%, he thinks, that means bond prices are going to go down. So, in other words, people who invest in bonds for safety, they wanted to secure that money, but actually it's not going to be so secure. The takeaway for me is, for money you want to keep absolutely safe, at least in the short-term, cash is your better bet.
The second point that Siegel brought up is that inflation will return this time, we didn't see inflation after the Great Recession, this time we will. Nothing crazy, like, 3%, 4%, 5%, but we haven't seen that in decades, so people are probably going to freak out a little bit about it. And for the first time ever, he's recommending that people have a little bit of gold in their portfolios as an inflation hedge. It's not something that I personally recommend, but when I hear someone like him recommend it, as well as Ray Dalio of Bridgewater, one of the more successful hedge funds in history, it kind of makes me want to take another look at gold. So, it's something that I probably will consider. And another reason why bonds are not going to be good, because if you have a bond that's paying 1% or 2%, but inflation is 3%, 4%, 5%, you're losing purchasing power.
And then the third point is basically, he still believes in stocks for the long run, and that's not surprising, he's kind of known as a permabull, that's not necessarily true, he actually became somewhat bearish in March of 2000 right as technology stocks were peaking. So, he does have times pointing out where stocks are – at least certain types of stocks are overvalued. But especially, when you compare stocks to bonds and cash, it just doesn't make sense to have an overweight in anything really than having most of your money in stock. In fact, he says, the classic balanced portfolio of 60% stocks and 40% bonds, that really nowadays should be 75% stocks, 25% bonds. He told CNBC earlier this year you should tilt them toward dividend-paying stocks. It's interesting for me, because in the RYR model portfolios, Rule Your Retirement, the service that I run at The Motley Fool for retirees, we do recommend 60% stocks, 40% bonds. I think it is time we take a look at that, but it's also important to point out that even Jeremy Siegel thinks you should have some money out of the stock market. In this bland model portfolio, he says 25%, I'm sure he would recommend even less for more younger, aggressive investors, but I think it's notable that even someone like Jeremy Siegel thinks some people should have a little bit of money on the side.
And that, Alison, is what's up.
Southwick: Alexander [Curran] is one of millions of people who recently found time on their hands amid the pandemic and decided to take up day trading. He discovered that a trade he made went sideways and he now owed $750,000. While it's still not clear whether he actually owed $750,000, it is very clear that he didn't understand what he was doing and was in over his head. He committed suicide as a result. And in his note to his parents he wrote, "How was a 20-year-old with no income able to get assigned almost $1 million worth of leverage?"
So, today, we're joined by Motley Fool contributing analyst, Matt Frankel, to talk about the rise of the so-called Robinhood trader. Matt, thanks for joining us.
Matt Frankel: Good to be here. This is such an important topic for new investors, especially, to learn about, so I'm excited for this.
Southwick: Yeah. Well, before we get into it, how about we teach our listeners a little bit about who you are, where are you coming to us from?
Frankel: Sure. Well, I am in South Carolina physically. I've been writing for The Motley Fool for about 10 years now in one capacity or another, I specialize mainly in personal finance, I'm a Certified Financial Planner, but I also cover real estate and banking as my two areas of specialty. And I write across all The Fool properties, The Ascent, Millionacres – our new real estate site – and a lot of our premium services. So, I'm, kind of, [laughs] have many hats at The Motley Fool.
Southwick: Yeah. The Motley Fool has many hats, so thanks for helping us out on all those different fronts. Let's start with the basics. So, can you explain day trading, because here at The Motley Fool we focus on long-term investing. And I definitely didn't know much about day trading until I had been at The Fool for a while. So, what is it?
Frankel: Well, at its core, day trading means moving in-and-out of stock positions during an individual trading day, but we can kind of expand that term to include any type of short-term trading, which is really what's going on today. I know a lot of the so-called Robinhood traders, and they're not necessarily pure day traders in that they're moving in-and-out of positions minute-by-minute, but you know, holding onto an airline stock for two days or something like that, which has historically been called swing trading, when you try to profit off small price movements. So, day trading at its core is moving in-and-out intraday, but we can kind of expand that to any type of short-term trading.
Southwick: Yeah. And at The Fool, we tend to invest in a company because we believe in it for the long-term, and so that's why we use the term "invest," whereas with day trading I feel like it's more you don't really care about the company that's attached to the chart, in some sense you're just looking for little blips on the screen. When I think of day trading, I think of someone looking at tons of charts and candlestick charts, and, oh, I saw this indicator, so I bought, and what does it matter what the ticker is.
Frankel: Right. And to me that's like the modern-day version of getting your palm read, [laughs] is looking at the charts and things like that. But you're right in the sense that day trading is more of a price centric form of buying stocks, meaning I'm buying, you know, American Airlines because I think it's going to be worth more next week, not because I think it's a good business, or I'm buying stock of XYZ bankrupt company because I think it's appealing at pennies on the dollar, as opposed to looking anything into the merits of the business itself.
Southwick: Yeah. There's a lot of comparison right now with so many people getting into trading, investing, day trading, that they're saying it's a lot like the 90s all over again. So, I was around in the '90s but I was not necessarily investing or doing anything adulting. But now I'm going to make it sound like you guys are a lot older than me, but I mean, I don't know, whatever, what was it like in the '90s, grandpa?
Brokamp: Well, let me tell you. [laughs] Well, I will say this, right, I think the thing about the '90s, and the '90s when I first became interested in personal finance, it's when I started first owning my own individual stocks and it's when I joined The Motley Fool, it's when The Motley Fool took off. So, the thing about the '90s was, there was this new technology called the internet that allowed people to buy stocks on their own without calling a broker. Commission prices came down, so it made day trading more efficient and it made it cheaper. And you had a situation where stocks just kept going up, so anyone could day trade and look smart. And I think you have some of that going on now. One of the things that is fueling this is that Robinhood eliminated commissions and then plenty of other firms followed suit. So, you don't have to pay $10 or $15 to get in and $10 to $15 to get out, it's free. Plus, a lot of these people have just started since the market bottomed in March, and it has been easier to make money over the last two months or so.
Frankel: Right. So, Mark Cuban also had something to say about this recently where he compared it to the dot-com bubble, and he was definitely there for that. I personally wasn't, I was in high school in the late 1990s. I think I bought my first stock in 2003, but there are a lot of, kind of, parallels between what's going on now and then. The low commissions were the, kind of, gateway in the 90s toward being able to day trade, there were also fewer regulations restricting day trading. Right now, you have what's called the Pattern Day Trader rule which really limits low balance accounts in their ability to day trade. If you have under $25,000, there's a lot of restrictions on what you can and cannot do in short-term trading right now. So, that didn't exist in the 90s, so it was kind of the wild west in terms of day trading, especially the online brokerages, low commissions, things like that. So, it looks like it might be the late-90s all over again in terms of trading and the new innovations that we've seen in the industry.
Southwick: Yeah. In general, how did it turn out for people in the '90s, Bro? I think you did some research, generally, also into how successful people are with day trading.
Brokamp: Right. So, I mean when you look back at the '90s, it actually didn't work out so well for a lot of people because some of the stocks that were most frequently day traded were technology stocks, dot-com stocks. And many of those suffered significantly starting, generally around March of 2000 and many of those companies went out of business. But even as I was preparing for this episode, I thought, you know, we at The Motley Fool have been saying, you shouldn't day trade since I've been at The Fool for more than 20 years. And I thought, like, what's the evidence of that? Like, is there evidence that establishes why it doesn't work?
So, I came up with actually five ways that, basically, day traders have the odds stacked against them. And very quickly, No. 1 is that, just the odds are not as much in your favor, the more you shrink down your timeframe. So, I've mentioned on the show before that if you look at U.S. large cap stocks, 5-year holding periods, you make money 88% of the time; 10-year periods, it's 94% of the time; 20-year periods, you always make money, historically speaking. If you're only holding a stock for a day, what's the historical odds you'll make money? Well, a company called Crestmont Research actually looked at this from 1950 to 2019. Stocks go up about 54% of the time from the day-to-day basis, so it's just a little more than a coin flip, and it's pretty consistent from decade to decade to decade. The worst decade was the 70s, you made money 51% of the time. Best decade was actually this last decade, you made money 54% of the time. So, you're kind of just flipping a coin.
The second thing is that if you are doing what Matt said is the pure day trading, that is, you're only holding it during the day, usually when the market is open, you're missing out on the afterhours market. And Bespoke Investment Group actually looked at this since 1993, which is when the SPDR was launched, the SPY ETFs, and looked at what returns you had if you just held it while the market was open from 9:30 to 4:00, at least here on Eastern; as opposed to if you bought it right as the market closed and sold it right as the market opened. Since 1993, if you just held it overnight, you would have made 570% total return. If you only owned it while the market was open, you made 3%. 99% of the returns of the S&P 500 happened after the markets close, because that's when companies release their press releases, they release their earnings, economic reports come out, things happen in Europe and Asia that affect the market. So, if all you're doing is trading during the day, you might be missing out on some of the biggest returns.
There are several studies that have looked at day trading, every single one of them has demonstrated that it doesn't work, some of these are a little older, some of them are from other countries, but the most recent one that got a lot of attention was from Brazil. And it looked at day trading over a couple of years from 2013 to 2015, found that 97% of all individuals who try to day trade for more than 300 days lost money, only 1.1% earned more than the Brazilian minimum wage. And every other study you look at finds the same result.
And then a couple of final things is, just higher taxes, right? One of the reasons why you would hold onto a stock for long-term is you get long-term capital gains. If you hold on to it, for stock, a day, most people listening to this, they're going to pay a 15% tax rate on long-term capital gains, if instead you own it for short-term, you're going to pay 22%, 24%, 32%, up to 37%, so you're giving away a lot of your gains in taxes.
And then finally, a big part of the stock market's return, anywhere from 20% to 40% of it over the long-term, is due to dividends. To get a dividend, you have to own a stock on one certain day, usually four times during the year, but if you're day trading in-and-out, you're not going to get those dividends.
Frankel: Those are actually the great [laughs] explanations of why day trading is bad, there's specific reasons why platforms like Robinhood, kind of, encourage, you know, uneducated traders to really make bad moves like that, but that's a great overview of why day trading is not in your favor.
Southwick: Yeah. I don't want to make it sound like we're attacking Robinhood. Robinhood is a tool. And I don't know enough about it to say that they're a horrible tool, but they seem like a tool that you can use to invest or it's a tool you can use to day trade, which we would argue is not the smartest move, I guess. Should we? Should we be bashing Robinhood? I don't know. Should we?
Brokamp: Well, just looking at the trading volume on most discount brokerages, since they've eliminated commissions, all of them have gone up. So, it isn't just people on Robinhood who have increased their trading volume and are basically doing more trading rather than just buying a stock and holding onto it for three, five, 10 years.
Frankel: Right. When I published an article about the Mark Cuban comments about how this is like the dot-com bubble, I got a lot of pushback on how we're always bashing Robinhood investors. And there's a big distinction here, because we're not bashing Robinhood investors, it's traders that we have an issue with. If someone wants to go on Robinhood and buy, you know, a share of Apple and hold it for the next 50 years, there's nothing wrong with that, it's a great vehicle to do that. Robinhood allows fractional shares, so if you wanted to, say, invest $100 in Amazon.com, which wouldn't be practical with most other brokers, that's a great use of Robinhood.
The problem is, there's a lot of features of Robinhood that kind of encourage short-term trading. I'll give you just a couple of examples real quick. One, Robinhood's platform is very, very lacking in educational resources when compared to, say, a TD Ameritrade and E*TRADE or a Schwab, they're designed as a no-frills trading platform, whereas if you log in to, say, TD Ameritrade, you could spend entire days reading through their educational resources on the dangers of option investing, how to properly set up a covered call strategy or how margin works and things like that. And you could spend a whole day reading those, whereas on Robinhood it's very, very minimal. Actually, they're the only platform, that I know of anyway, that charges zero commissions on options trading, which is where a lot of traders find themselves getting into trouble. You know, using options, when they don't really understand. They have some of the cheapest margin rates.
If you have a premium membership with Robinhood, which is I think $5/month, the first [laughs] $1,000 of margin is interest free, and above that, I think, it's a 5% margin rate, which is about the cheapest you're going to find. And finally, there's a lack of customer support or customer support is pretty much an automated chatbot and a very slow email process from what I hear, there's not even a published customer service phone number on Robinhood's website, if you want to call and get some assistance from a person ...
Southwick: ... and it goes down pretty regularly. Like, you see on Twitter when Robinhood goes down and people are mad that they couldn't close their options or whatever that they wanted to do.
Frankel: Right. And there's not even anybody you can call in that situation. And not to mention there's cryptocurrency trading available on the platform, which is you know --
Southwick: What could go wrong?
Frankel: Right. That's clearly [laughs] intended toward the younger crowd that wants to make money quickly, if you ask me. But all those things kind of really, you know, I also don't want to say encourage short-term trading, but it definitely facilitates it.
Brokamp: I think, I do also agree that to a certain degree Robinhood has facilitated some people getting into investing, which is a good thing. And I realized this recently when my millennial daughter texted me a screenshot of her Robinhood account, which I wasn't even aware of. And she said, these stocks look good, I'm getting into Robinhood. And I love the idea that a lot of these people are trading for the first time. And even if they try day trading, they're going to learn very quickly that it doesn't work, and learning that now, when they don't have a lot of money, is a good idea.
So, I think Robinhood deserves some credit for that, getting people into investing. But like Matt said, the tools are not there, and obviously, a lot of the information that the fellow you mentioned earlier in the show, the disclosures weren't there, the education wasn't there to learn, like, really in the end he actually probably didn't owe that much money, but it wasn't clear, and I could imagine, which is very, very shocking.
Southwick: Alright. So, we've talked about, sort of, Robinhood and the rise of zero fee trading platforms. I think another reason why we're kind of seeing this 90s all over again is the pandemic and quarantine means that people have time on their hands. And in some cases, they oddly have more money. We talked about how the savings rate is up in America. I don't know if we talked about it last week, I don't know, again, time is without meaning, so at some point you talked about it. But also, people apparently are more likely – like, people are taking their stimulus money and investing it. So, CNBC cited research from Envest Yodlee (sic) [Envestnet Yodlee] that found that people earning between $35,000, and 75% annually, increased their stock trading by 90% more than the prior week after receiving their stimulus check.
So, yes, people have some extra time on their hands and some extra money. And so, it seems like that's another factor that's causing people to start investing more; and with the market dropping.
Frankel: Yeah, for sure. A lot of people definitely have time and money on their hands. You mentioned the savings rates. Banks reported over $860 billion of inflows in April alone. So, this is not just stimulus checks that people, you know, you have money to spare. I mean, all the stimulus checks issued don't add up to $800 billion, so it's the enhanced unemployment benefits. I read that in some industries people are making double what they would have from working from just unemployment benefits right now. Like, the hospitality industry, in particular, is a big one where they're getting extra money. So, people do have a lot of money and a lot of time. And there's really nothing to fulfill [laughs] the urge to gamble, I guess you would say.
Southwick: Yes. So, Bro, do you feel like your daughter opened up a Robinhood account because – why do you think she did it? Because I also hear that, like, "Stock prices were too high but now we have a market drop, so buy low," and now is my opportunity to do it. But why do you think your daughter did it?
Brokamp: So, talking to her, her friends are doing it. So, she learned about it from her friends. Now, she's heard me talk about money over and over again ...
Southwick: ... Boo! not cool.
Brokamp: [laughs] But this is a great thing. So, she was over for Father's Day, so she's going to be 29 in a couple of weeks. And she's telling me how much she is loving reading The Millionaire Next Door, which I gave to her years ago and she finally picked up. So, I don't know if the interest in money came first and then came Robinhood, or Robinhood came first and then she got interested in money, but it is now all, sort of, coming home for her. This interest in money and this idea of being financially independent and calculating where she is, like, relative to other people her age, it's all wonderful. But it did start with other people talking about Robinhood and getting excited about it.
And I think part of it is that it's on the phone. You can do it anywhere, if you're sitting on the metro, she takes the metro all the time, and you have nothing to do, you can pull up your Robinhood account and see how your stocks are doing.
Southwick: Alright, Matt, you touched on something earlier that I want to dig deeper into, and that's the idea that one of the other reasons why day trading is having such a resurgence is because people miss stuff to bet on. New York Times, for example, did a recent article, Trading Sportsbooks for Brokerages, Bored Bettors Wager on Stocks, and it's all about these guys who used to gamble on sports and then they're like, oh, I don't have sports anymore, I guess I'll gamble on stocks now.
Frankel: Well, it's not just sports gambling, remember, casinos have been closed as well.
Southwick: Oh, yeah, that too.
Frankel: So, now that we're seeing casinos open back up, we're seeing sports are supposedly going to start next month in some cases. I think the baseball season they're going to restart next month. Hopefully, [laughs] that'll eliminate some of the trouble. And it's not just the gamblers themselves, it's the prolific gamblers who are really romanticizing day trading as kind of a substitute. We've mentioned Dave Portnoy. I'm sure you and Bro have heard of Dave Portnoy.
Southwick: He's amazing.
Brokamp: Oh, yeah.
Frankel: [laughs] Have you followed his trading system yet?
Southwick: I have not followed his trading system, but I have – so, I did watch a video of him, because basically, if I understand this, he streams, like, the last hour before the market closes, right? And he's basically at his computer and he's gabbing, over half-a-million people watch him every day.
Frankel: That's scary.
Southwick: I know, right? Well, I guess that's the point. And so, what he did that day is he yelled a lot at Ron Insana, because I think maybe Ron Insana threw him some shade on CNBC. So, he was yelling a lot, and every other word is an f-bomb. But he basically decided that it was so easy to invest that he got a bag of Scrabble tiles, and he's like, I'm just going to pull out Scrabble tiles and if it's a ticker with enough trading volume, I'm just going to buy it. And so that's what he did, he kept pulling – it's harder than you'd think to actually form tickers out of just pulling tiles out of – like, that was the hard part. And then once he pulled out Macy's, so I think he traded $150,000 on Macy's because that's what he pulled out of the bag. He also pulled out the ticker for Raytheon, and that's what he did, and he ended the day down $142,000, because of a bad trade on Spirit Airlines, but it's fascinating. I mean, Jason Moser always says, it's entertainment, its entertainment. But at the same time, it's also scary if there are people who are thinking they can take the same amount of risk that this millionaire is, because he's a multimillionaire.
Frankel: Right. And what I was reading is that the entire amount of money that Dave Portnoy has put into the market is less than 1% of his net worth. So, it's important to point out that speculating on stocks is not inherently bad if you do it with money you're prepared to lose. If I was going to take $100 to the casino to play blackjack and instead want to make some speculative bets on stocks, it's really the same thing, as long as I know what I'm doing with that money. It's when people think that there's no way to lose and with some things that Dave Portnoy says, I'll read you a quote that I read you off the air earlier, "Why take profits when every airline goes up 20% every day, losers take profits, winners push the chips into the middle." That's where you kind of blur the lines between recreational gambling and dangerous thinking that you can't lose. Nobody who walks into a casino thinks that they're going to win every time they put money into the slot machine.
Southwick: Yeah. And I guess, actually we should say some background on him. Like, he was the Founder of Barstool Sports, which is big on sports and betting on sports. And when he didn't have sports, he's smart enough to be, like, well, I still need a way to keep my lights on, make money, keep busy, be entertaining, so I'll do this now, because it's, you know, now another business idea for him. Was it you who said on Industry Focus that if you talk to these different day traders, they make more money selling their system for day trading then they do actually day trading? [laughs]
Frankel: Yes. And I can't say that in Portnoy's case, just because he definitely does put a lot of money into the market. A lot of times when you see these, you know, people who've sold a million books on how to day trade stocks. They made more money selling those books than they did on actual day trading. I want to say 100% of the time, but most people who sell a trading system make more money from selling the trading system itself.
Southwick: Yeah. Well, it's fascinating how – because again, I was watching his video, and again, you can view it as entertainment or you can view it as something dangerous for people who don't understand the risk involved. But he says stuff that we've said at The Fool before, where it's like, "Wall Street doesn't want you to know that you can do this yourself," and I'll be like, well, yeah, that's true, yeah, they want you to pay them to do it for them, that's true. And I'm like, but, no, the answer is not day trading, [laughs] that's not – I'm like, yes, I am there with you up until you start talking about dropping, you know, $150,000 on some Scrabble tiles. So, on the one hand, I'm like, yeah, that's great. To your point, Bro, that's great, new people are learning more about the stock market, but they're going to learn the hard way, they're going to get burned.
Frankel: Right. And, I mean, what he's doing is inherently not bad. I mean, the points you were saying, like, you know, you don't need to be a Wall Street insider to make money in stocks, that's true. But I wish there was a Dave Portnoy of investing right now [laughs] who was, you know, kind of romanticizing the long-term investing, if that's even possible to do.
The reason most people don't invest the right way is because it's not, you know, exciting and fun and thrilling. I mean, the stocks I've done best on, I've owned for years and years and I don't even check them regularly anymore, to be honest with you, in a lot of cases, I couldn't tell you the share price of Apple, which I've owned for about a decade. Because it's not exciting, but it's been the best contributor to my growing wealth over time, I guess you would say.
Southwick: Yeah. So, there was this talking point for a while that the reason why the market didn't fall as much as it should have, because we're in a global pandemic, was because Robinhood investors were piling money into the market and bolstering it up, is that true? I feel like Robinhood investors would still be the smallest percentage of the global investors in the world.
Frankel: They are. So, I don't buy that in the context of the broad market. The typical Robinhood account has less than $5,000 in it, in many cases a lot less. Robinhood is about 13 million users right now. If all of them had $5,000 in their account, that would be a total of $65 billion. That is a small, small, small fraction of the trillions of dollars of volume that flows through the stock market every day, so.
However, I would buy that in the sense that it's moving some of these cheap stocks. If you look at just some of the names on the top list of Robinhood stocks, like, GoPro is a major Robinhood stock. Carnival Cruise Lines, I would absolutely buy that Robinhood traders have had a big hand in moving those stocks. But as far as the entire stock market goes, no, I don't think Robinhood traders had anything to do with the sharp rise we saw. I think that was just more, the market realized that we're avoiding the worst-case scenario during the pandemic.
Southwick: Can you explain the Hertz story to me, because that's kind of a fascinating story too, speaking of Robinhood investors coming together to do something.
Frankel: There are parts of the Hertz story I can't explain to myself, but [laughs] having said that. If you're not familiar, Hertz is the car rental company, declared bankruptcy, after they declared bankruptcy, they hit a low of about $0.40/share on May 26th. And because of the Robinhood community, primarily, the shares soared by over 1,000% at one point and hit a high of over $5.50 on June 9th. This is a bankrupt company, the company specifically – Hertz itself warned investors, if you buy our shares, you will likely lose your money. Over 170,000 Robinhood investors now have Hertz shares in their portfolio, which have since dropped to about $1.45. So, it's a bankrupt company that has no intrinsic value at this point whatsoever other than the small prayer that they might get some money out of bankruptcy proceedings.
It just kind of goes to show you the herd mentality of Robinhood investors that would put that much into an essentially worthless security just because of – it's essentially the "greater fool" theory that someone a few days from now is going to pay more than I did for this. There's really no other reason to own those shares.
Southwick: Yeah. And is that a trend? Like, do they like to buy beaten down stocks, like Carnival; buying a cruise line is a gutsy move right now.
Frankel: Right. I mean, when I look at the top 10. Robinhood is very transparent about the stocks their investors own. That's one thing I can say about them compared to other brokerages. And you see other names that are really – it's the low share price stocks that their investors tend to focus on. Ford and GE are the No. 1 and No. 2, American Airlines is No. 3, beaten down airline stocks.
To be fair, some of the stocks that are widely owned by Robinhood investors are good long-term investments. Disney is No. 4. Apple is among the top 10 list. Microsoft is on the list. But the majority are these speculative names that trade in high volumes, they're very volatile lately. And for the most part have very low share prices. So, it's easier for investors and Robinhood to buy larger quantities of these shares in the hopes that they're going to get – and it's a very common myth among new investors in general, and not just the Robinhood crowd, that if I buy low share price stocks, they have the most potential to shoot upward, which is absolutely not the case. In many cases, these are stocks that are cheap for a reason and you're more likely to lose money with them than if you buy a high-dollar stock, like an Apple or Microsoft.
Southwick: Well, I can keep talking about this for a lot longer, because I think it's so fascinating, but how about for you guys, let's provide a spoiler to our listeners, where does this all end. If the past is prologue, what have we learned about where a bunch of people getting into day trading is going to end up?
Frankel: Well, I guess I'll go first with that. I think it's going to end badly for a lot of Robinhood traders, but the silver lining is that these are mostly small accounts. You know, if you see a Robinhood trader that has $20,000 in their account, that's the exception, most of these are small traders. So, if they can learn these lessons on small accounts, it's not necessarily the end of the world. I mean, my first investment ever was I think a penny stock that lost all my money, but it was for about $200 and it was a good investment to learn, it made me want to learn how to invest correctly. So, my hope is that out of this comes some good. I'm an eternal optimist, so my hope is that the Robinhood crowd will take this opportunity to learn how to invest for the long-term.
Brokamp: Yeah, I agree with that, and I would also say, to the extent that this is due to the shut down and lack of sports and lack of other things to bet on, you know, that will change. At some point life will return to normal and people will have other things to focus on. And my hope is that those people with their accounts then just stop paying attention to them, they remember it two, three, four, five years later and are happy that it's likely gone up at that point and they've learned that all you have to do is buy some good stocks and leave them alone and you'll do fine.
Southwick: Yeah. I hope it just doesn't burn a lot of people and turn them off from investing entirely.
Brokamp: Yeah. And I think that's a risk; I think that is certainly a risk. And hopefully, they won't feel that way. And the other issue too is that a lot of Robinhood accounts are taxable accounts, they're not retirement accounts, and hopefully, people will be still be putting most of their money in their 401(k), get that employer match that tax advantage growth, and that will be left alone to grow through the years.
Southwick: Yeah. Well, Matt, thank you so much for joining us. This is, again, just been such a fascinating discussion, I really appreciate you coming on.
Frankel: Of course. I had a great time.
Southwick: Okay. As always, The Motley Fool may have recommendations for or against the stocks we talked about, don't buy and sell stocks based solely on what you heard here or anywhere else for that matter, do your research, right, yes, OK. [laughs]
That's the show, it's edited day trade-ly by Rick Engdahl. Our email is Answers@Fool.com. For Robert Brokamp, I'm Alison Southwick, stay Foolish everybody.
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. Alison Southwick owns shares of Amazon and Walt Disney. Matthew Frankel, CFP owns shares of Apple, General Electric, and Walt Disney. Robert Brokamp, CFP owns shares of Walt Disney. The Motley Fool owns shares of and recommends Amazon, Apple, Microsoft, Spirit Airlines, Twitter, and Walt Disney. The Motley Fool recommends Carnival and recommends the following options: long January 2021 $60 calls on Walt Disney, long January 2021 $85 calls on Microsoft, short January 2021 $115 calls on Microsoft, short January 2022 $1940 calls on Amazon, long January 2022 $1920 calls on Amazon, and short July 2020 $115 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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I've been writing for The Motley Fool for about 10 years now in one capacity or another, I specialize mainly in personal finance, I'm a Certified Financial Planner, but I also cover real estate and banking as my two areas of specialty. Southwick: Alright, Matt, you touched on something earlier that I want to dig deeper into, and that's the idea that one of the other reasons why day trading is having such a resurgence is because people miss stuff to bet on. And my hope is that those people with their accounts then just stop paying attention to them, they remember it two, three, four, five years later and are happy that it's likely gone up at that point and they've learned that all you have to do is buy some good stocks and leave them alone and you'll do fine.
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In this episode of Motley Fool Answers, Alison Southwick chats with Motley Fool contributor Matt Frankel and Fool retirement expert Robert Brokamp about the perils of day-trading and swing trading. The Motley Fool owns shares of and recommends Amazon, Apple, Microsoft, Spirit Airlines, Twitter, and Walt Disney. The Motley Fool recommends Carnival and recommends the following options: long January 2021 $60 calls on Walt Disney, long January 2021 $85 calls on Microsoft, short January 2021 $115 calls on Microsoft, short January 2022 $1940 calls on Amazon, long January 2022 $1920 calls on Amazon, and short July 2020 $115 calls on Walt Disney.
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Frankel: Well, at its core, day trading means moving in-and-out of stock positions during an individual trading day, but we can kind of expand that term to include any type of short-term trading, which is really what's going on today. So, I mean when you look back at the '90s, it actually didn't work out so well for a lot of people because some of the stocks that were most frequently day traded were technology stocks, dot-com stocks. Frankel: Those are actually the great [laughs] explanations of why day trading is bad, there's specific reasons why platforms like Robinhood, kind of, encourage, you know, uneducated traders to really make bad moves like that, but that's a great overview of why day trading is not in your favor.
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And I definitely didn't know much about day trading until I had been at The Fool for a while. So, it isn't just people on Robinhood who have increased their trading volume and are basically doing more trading rather than just buying a stock and holding onto it for three, five, 10 years. So, people do have a lot of money and a lot of time.
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