Unnamed: 0
stringlengths 3
8
| Date
stringlengths 23
23
| Article_title
stringlengths 1
250
| Stock_symbol
stringlengths 1
5
| Url
stringlengths 44
135
| Publisher
stringclasses 1
value | Author
stringclasses 1
value | Article
stringlengths 1
343k
| Lsa_summary
stringlengths 3
53.9k
| Luhn_summary
stringlengths 1
53.9k
| Textrank_summary
stringlengths 1
53.9k
| Lexrank_summary
stringlengths 1
53.9k
|
|---|---|---|---|---|---|---|---|---|---|---|---|
5800.0
|
2020-06-03 00:00:00 UTC
|
Stock Market News: Why Airline Stocks Gained Altitude Wednesday
|
AAL
|
https://www.nasdaq.com/articles/stock-market-news%3A-why-airline-stocks-gained-altitude-wednesday-2020-06-03
|
nan
|
nan
|
The stock market continued to gain ground on Wednesday morning, buoyed by hopes for a successful economic recovery along with some positive earnings reports from well-regarded tech companies. Market participants have been increasingly optimistic about the prospects for businesses to bounce back from the disruptions that the coronavirus pandemic has wrought over the past several months. Just before 11 a.m. EDT, the Dow Jones Industrial Average (DJINDICES: ^DJI) was up 320 points to 26,062. The S&P 500 (SNPINDEX: ^GSPC) had risen 32 points to 3,113, and the Nasdaq Composite (NASDAQINDEX: ^IXIC) had picked up 60 points to 9,668.
Airline stocks were among the big winners on Wednesday morning, with gains that easily topped the broader markets' moves higher. Even though the coronavirus-related challenges that airlines face are particularly difficult, investors like the signs they're seeing that suggest travelers want to get back in the air.
Image source: Getty Images.
Nice moves higher for airline stocks
Gains in the airline sector Wednesday morning were broad. Among the top four U.S. carriers, United Airlines Holdings (NASDAQ: UAL) led the way with gains of 7.5%. Delta Air Lines (NYSE: DAL) and American Airlines Group (NASDAQ: AAL) followed with upward moves of between 5% and 6%, while Southwest Airlines (NYSE: LUV) weighed in with a better than 4% rise.
Some of the smaller carriers did even better. Allegiant Travel (NASDAQ: ALGT) and Mesa Air Group (NASDAQ: MESA) were up 11% on the day. No-frills player Spirit Airlines (NYSE: SAVE) and regional powerhouse JetBlue Airways (NASDAQ: JBLU) managed to gain almost 10%, and Alaska Air Group (NYSE: ALK) was just behind with a 9% boost. SkyWest (NASDAQ: SKYW) and Hawaiian Holdings (NASDAQ: HA) posted gains of 8% and 7%, respectively.
The one thing that all airlines have in common is that they want to see more travelers willing to fly, and trends suggest people are going back into the skies. Although traffic levels remain far below pre-coronavirus levels, the reported number of people moving through TSA checkpoints is now more than three and a half times as high as it was at its worst point in April. Airlines are starting to see upticks in reservation activity, especially among popular destinations sporting beaches or mountainous terrain.
Can airlines hold altitude?
To say that airlines have put the pandemic behind them, though, would be extremely premature. Even with signs of improving conditions, the pace of improvement has been slow. Would-be passengers are still waiting to see what post-pandemic travel will look like, and airlines are still struggling to come up with solutions that will meet health and safety needs while still preserving their long-term profitability.
Moreover, several unrelated macroeconomic trends could represent headwinds to airlines' recovery. Earlier this week, for instance, Chinese officials barred U.S. airlines from flying between the two countries, and the White House followed suit with reciprocal restrictions on Chinese airlines. Big carriers like Delta, American, and United are counting on international travel coming back, but geopolitical issues could stop that from happening.
Similarly, airlines had benefited from low fuel prices, but the energy markets have rebounded significantly. Even though oil at $40 per barrel is still inexpensive from a historical standpoint, the price has risen steeply in the past few weeks. Continued increases could add further costs, putting even more strain on airlines' finances.
At this point, airline stocks remain speculative in nature, with high potential reward, but high risk. Investors need to be aware of both before they invest in the industry, and shareholders can expect further share-price volatility in the months to come.
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 April 16, 2020
Dan Caplinger has no position in any of the stocks mentioned. 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.
|
Delta Air Lines (NYSE: DAL) and American Airlines Group (NASDAQ: AAL) followed with upward moves of between 5% and 6%, while Southwest Airlines (NYSE: LUV) weighed in with a better than 4% rise. The stock market continued to gain ground on Wednesday morning, buoyed by hopes for a successful economic recovery along with some positive earnings reports from well-regarded tech companies. Market participants have been increasingly optimistic about the prospects for businesses to bounce back from the disruptions that the coronavirus pandemic has wrought over the past several months.
|
Delta Air Lines (NYSE: DAL) and American Airlines Group (NASDAQ: AAL) followed with upward moves of between 5% and 6%, while Southwest Airlines (NYSE: LUV) weighed in with a better than 4% rise. Allegiant Travel (NASDAQ: ALGT) and Mesa Air Group (NASDAQ: MESA) were up 11% on the day. The Motley Fool recommends Alaska Air Group, Delta Air Lines, Hawaiian Holdings, JetBlue Airways, and Southwest Airlines.
|
Delta Air Lines (NYSE: DAL) and American Airlines Group (NASDAQ: AAL) followed with upward moves of between 5% and 6%, while Southwest Airlines (NYSE: LUV) weighed in with a better than 4% rise. Nice moves higher for airline stocks Gains in the airline sector Wednesday morning were broad. 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.
|
Delta Air Lines (NYSE: DAL) and American Airlines Group (NASDAQ: AAL) followed with upward moves of between 5% and 6%, while Southwest Airlines (NYSE: LUV) weighed in with a better than 4% rise. Among the top four U.S. carriers, United Airlines Holdings (NASDAQ: UAL) led the way with gains of 7.5%. To say that airlines have put the pandemic behind them, though, would be extremely premature.
|
5801.0
|
2020-06-03 00:00:00 UTC
|
BUZZ-U.S. STOCKS ON THE MOVE-Glu Mobile, Boeing, American Eagle
|
AAL
|
https://www.nasdaq.com/articles/buzz-u.s.-stocks-on-the-move-glu-mobile-boeing-american-eagle-2020-06-03
|
nan
|
nan
|
Eikon search string for individual stock moves: STXBZ
The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi
The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh
U.S. stocks rise, lifted by a jump in Boeing shares on Wednesday, with investors remaining optimistic about an economic rebound from a coronavirus-led slump amid continuing social unrest in the country. .N
At 11:30 p.m. ET, the Dow Jones Industrial Average .DJI was up 1.50% at 26,127.63. The S&P 500 .SPX was up 1.06% at 3,113.61 and the Nasdaq Composite .IXIC was up 0.43% at 9,649.369. The top three S&P 500 .PG.INX percentage gainers: ** Simon Property Group , up 14.3% ** Microchip Technology , up 10.7% ** Kimco Realty Corp , up 10.7% The top three S&P 500 .PL.INX percentage losers: ** Campbell Soup Co , down 5.7% ** Newmont Corp , down 4.6% ** Take Two Interactive Software Inc , down 4.3% The top three NYSE .PG.N percentage gainers: ** Medley Llc , up 52.1% ** Ashford Inc , up 46% ** Signet Jewelers , up 24.3% The top three NYSE .PL.N percentage losers: ** Direxion Daily S&P 500 High Beta Bear , down 14.1% ** China Online Education , down 14.1% ** Laredo Petroleum , down 13.9% The top three Nasdaq .PG.O percentage gainers: ** Fsd Pharma , up 192.4% ** Genius Brands International , up 69% ** Cassav Sciences Inc , up 54.9% The top three Nasdaq .PL.O percentage losers: ** Hebron Technology Co , down 26.5% ** Evofem Biosciences , down 25.3% ** Ameri Holdings Ord , down 23.7% ** Boeing Co BA.N: up 7.8%
BUZZ- Rises after Daniel Loeb's Third point discloses stake
** Coty Inc COTY.N: up 6.4%
BUZZ- In talks with Kim Kardashian for cosmetics line, shares jump ** Zoom Video Communications Inc ZM.O: up 6.3%
BUZZ- Street View: Zoom's growth trajectory was impressive, but 'what's next? ** OpGen Inc OPGN.O: up 1.5%
BUZZ- Jumps after extending partnership with NY health department ** Reinsurance Group of America RGA.N: down 6.5%
BUZZ- Falls on $500 mln stock offering ** Crowdstrike Holdings Inc CRWD.O: up 5.4%
BUZZ- Set to open at over 9-month high on surprise profit ** American Airlines Group Inc AAL.O: up 5.5% ** Delta Air Lines Inc DAL.N: up 6.1% ** United Airlines Holdings Inc UAL.O: up 9.0% ** SouthWest Airlines Co LUV.N: up 5.2%
BUZZ- U.S. airlines: Cowen sees 20% drop in fleets, pilot workforce after COVID-19 ** Campbell Soup Co CPB.N: down 5.7%
BUZZ- Gains on raised 2020 outlook, upbeat Q3 ** Gilead Sciences Inc GILD.O: up 1.3%
BUZZ- SVB Leerink sees $7 bln sales from COVID-19 drug, upgrades ** Cracker Barrel Old Country Store Inc CBRL.O: up 9.9%
BUZZ- SunTrust raises to "buy" on better margins, lower COVID-19 risk ** Evofem Biosciences Inc EVFM.O: down 25.3%
BUZZ- Slumps on discounted stock offering ** Microchip Technology Inc MCHP.O: up 10.7%
BUZZ- Gains as Q1 forecast above Wall Street's ** FSD Pharma Inc HUGE.O: up 192.4%
BUZZ- Surges on FDA nod to design study for potential COVID-19 treatment ** B&G Foods Inc BGS.N: down 0.1%
BUZZ- B&G Foods: Rises on strong Q2 sales forecast ** Mattel Inc MAT.O: up 6.3%
BUZZ- Up as Jefferies raises rating to 'buy', citing stable H2 ** RTW Retailwinds Inc RTW.N: down 43.0%
BUZZ- Falls after co warns of bankruptcy filing ** Glu Mobile Inc GLUU.O: down 6.7%
BUZZ- Stay-at-home winner Glu Mobile falls on stock offering plans ** American Eagle Outfitters Inc AEO.N: up 14.4%
BUZZ- Rises on strong online sales, demand recovery ** Syneos Health SYNH.O: up 2.0%
BUZZ- Rises as Q2 forecast above Wall St estimates ** Secoo Holding SECO.O: up 49.3%
BUZZ-: Eyes best day ever on $100 mln investment from Qudian
The 11 major S&P 500 sectors:
Communication Services
.SPLRCL
down 0.09%
Consumer Discretionary
.SPLRCD
up 1.09%
Consumer Staples
.SPLRCS
up 0.54%
Energy
.SPNY
up 1.95%
Financial
.SPSY
up 3.77%
Health
.SPXHC
down 0.34%
Industrial
.SPLRCI
up 3.18%
Information Technology
.SPLRCT
up 0.22%
Materials
.SPLRCM
up 2.37%
Real Estate
.SPLRCR
up 2.83%
Utilities
.SPLRCU
up 1.90%
(Compiled by Shivani Kumaresan in Bengaluru)
((Shivani.Kumaresan@thomsonreuters.com ; +1 646 223 8780; ));))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
** OpGen Inc OPGN.O: up 1.5% BUZZ- Jumps after extending partnership with NY health department ** Reinsurance Group of America RGA.N: down 6.5% BUZZ- Falls on $500 mln stock offering ** Crowdstrike Holdings Inc CRWD.O: up 5.4% BUZZ- Set to open at over 9-month high on surprise profit ** American Airlines Group Inc AAL.O: up 5.5% ** Delta Air Lines Inc DAL.N: up 6.1% ** United Airlines Holdings Inc UAL.O: up 9.0% ** SouthWest Airlines Co LUV.N: up 5.2% BUZZ- U.S. airlines: Cowen sees 20% drop in fleets, pilot workforce after COVID-19 ** Campbell Soup Co CPB.N: down 5.7% BUZZ- Gains on raised 2020 outlook, upbeat Q3 ** Gilead Sciences Inc GILD.O: up 1.3% BUZZ- SVB Leerink sees $7 bln sales from COVID-19 drug, upgrades ** Cracker Barrel Old Country Store Inc CBRL.O: up 9.9% BUZZ- SunTrust raises to "buy" on better margins, lower COVID-19 risk ** Evofem Biosciences Inc EVFM.O: down 25.3% BUZZ- Slumps on discounted stock offering ** Microchip Technology Inc MCHP.O: up 10.7% BUZZ- Gains as Q1 forecast above Wall Street's ** FSD Pharma Inc HUGE.O: up 192.4% BUZZ- Surges on FDA nod to design study for potential COVID-19 treatment ** B&G Foods Inc BGS.N: down 0.1% BUZZ- B&G Foods: Rises on strong Q2 sales forecast ** Mattel Inc MAT.O: up 6.3% BUZZ- Up as Jefferies raises rating to 'buy', citing stable H2 ** RTW Retailwinds Inc RTW.N: down 43.0% BUZZ- Falls after co warns of bankruptcy filing ** Glu Mobile Inc GLUU.O: down 6.7% BUZZ- Stay-at-home winner Glu Mobile falls on stock offering plans ** American Eagle Outfitters Inc AEO.N: up 14.4% BUZZ- Rises on strong online sales, demand recovery ** Syneos Health SYNH.O: up 2.0% BUZZ- Rises as Q2 forecast above Wall St estimates ** Secoo Holding SECO.O: up 49.3% BUZZ-: Eyes best day ever on $100 mln investment from Qudian The 11 major S&P 500 sectors: Communication Services Eikon search string for individual stock moves: STXBZ The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh U.S. stocks rise, lifted by a jump in Boeing shares on Wednesday, with investors remaining optimistic about an economic rebound from a coronavirus-led slump amid continuing social unrest in the country. The top three S&P 500 .PG.INX percentage gainers: ** Simon Property Group , up 14.3% ** Microchip Technology , up 10.7% ** Kimco Realty Corp , up 10.7% The top three S&P 500 .PL.INX percentage losers: ** Campbell Soup Co , down 5.7% ** Newmont Corp , down 4.6% ** Take Two Interactive Software Inc , down 4.3% The top three NYSE .PG.N percentage gainers: ** Medley Llc , up 52.1% ** Ashford Inc , up 46% ** Signet Jewelers , up 24.3% The top three NYSE .PL.N percentage losers: ** Direxion Daily S&P 500 High Beta Bear , down 14.1% ** China Online Education , down 14.1% ** Laredo Petroleum , down 13.9% The top three Nasdaq .PG.O percentage gainers: ** Fsd Pharma , up 192.4% ** Genius Brands International , up 69% ** Cassav Sciences Inc , up 54.9% The top three Nasdaq .PL.O percentage losers: ** Hebron Technology Co , down 26.5% ** Evofem Biosciences , down 25.3% ** Ameri Holdings Ord , down 23.7% ** Boeing Co BA.N: up 7.8% BUZZ- Rises after Daniel Loeb's Third point discloses stake ** Coty Inc COTY.N: up 6.4% BUZZ- In talks with Kim Kardashian for cosmetics line, shares jump ** Zoom Video Communications Inc ZM.O: up 6.3% BUZZ- Street View: Zoom's growth trajectory was impressive, but 'what's next?
|
** OpGen Inc OPGN.O: up 1.5% BUZZ- Jumps after extending partnership with NY health department ** Reinsurance Group of America RGA.N: down 6.5% BUZZ- Falls on $500 mln stock offering ** Crowdstrike Holdings Inc CRWD.O: up 5.4% BUZZ- Set to open at over 9-month high on surprise profit ** American Airlines Group Inc AAL.O: up 5.5% ** Delta Air Lines Inc DAL.N: up 6.1% ** United Airlines Holdings Inc UAL.O: up 9.0% ** SouthWest Airlines Co LUV.N: up 5.2% BUZZ- U.S. airlines: Cowen sees 20% drop in fleets, pilot workforce after COVID-19 ** Campbell Soup Co CPB.N: down 5.7% BUZZ- Gains on raised 2020 outlook, upbeat Q3 ** Gilead Sciences Inc GILD.O: up 1.3% BUZZ- SVB Leerink sees $7 bln sales from COVID-19 drug, upgrades ** Cracker Barrel Old Country Store Inc CBRL.O: up 9.9% BUZZ- SunTrust raises to "buy" on better margins, lower COVID-19 risk ** Evofem Biosciences Inc EVFM.O: down 25.3% BUZZ- Slumps on discounted stock offering ** Microchip Technology Inc MCHP.O: up 10.7% BUZZ- Gains as Q1 forecast above Wall Street's ** FSD Pharma Inc HUGE.O: up 192.4% BUZZ- Surges on FDA nod to design study for potential COVID-19 treatment ** B&G Foods Inc BGS.N: down 0.1% BUZZ- B&G Foods: Rises on strong Q2 sales forecast ** Mattel Inc MAT.O: up 6.3% BUZZ- Up as Jefferies raises rating to 'buy', citing stable H2 ** RTW Retailwinds Inc RTW.N: down 43.0% BUZZ- Falls after co warns of bankruptcy filing ** Glu Mobile Inc GLUU.O: down 6.7% BUZZ- Stay-at-home winner Glu Mobile falls on stock offering plans ** American Eagle Outfitters Inc AEO.N: up 14.4% BUZZ- Rises on strong online sales, demand recovery ** Syneos Health SYNH.O: up 2.0% BUZZ- Rises as Q2 forecast above Wall St estimates ** Secoo Holding SECO.O: up 49.3% BUZZ-: Eyes best day ever on $100 mln investment from Qudian The 11 major S&P 500 sectors: Communication Services Eikon search string for individual stock moves: STXBZ The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh U.S. stocks rise, lifted by a jump in Boeing shares on Wednesday, with investors remaining optimistic about an economic rebound from a coronavirus-led slump amid continuing social unrest in the country. The top three S&P 500 .PG.INX percentage gainers: ** Simon Property Group , up 14.3% ** Microchip Technology , up 10.7% ** Kimco Realty Corp , up 10.7% The top three S&P 500 .PL.INX percentage losers: ** Campbell Soup Co , down 5.7% ** Newmont Corp , down 4.6% ** Take Two Interactive Software Inc , down 4.3% The top three NYSE .PG.N percentage gainers: ** Medley Llc , up 52.1% ** Ashford Inc , up 46% ** Signet Jewelers , up 24.3% The top three NYSE .PL.N percentage losers: ** Direxion Daily S&P 500 High Beta Bear , down 14.1% ** China Online Education , down 14.1% ** Laredo Petroleum , down 13.9% The top three Nasdaq .PG.O percentage gainers: ** Fsd Pharma , up 192.4% ** Genius Brands International , up 69% ** Cassav Sciences Inc , up 54.9% The top three Nasdaq .PL.O percentage losers: ** Hebron Technology Co , down 26.5% ** Evofem Biosciences , down 25.3% ** Ameri Holdings Ord , down 23.7% ** Boeing Co BA.N: up 7.8% BUZZ- Rises after Daniel Loeb's Third point discloses stake ** Coty Inc COTY.N: up 6.4% BUZZ- In talks with Kim Kardashian for cosmetics line, shares jump ** Zoom Video Communications Inc ZM.O: up 6.3% BUZZ- Street View: Zoom's growth trajectory was impressive, but 'what's next?
|
** OpGen Inc OPGN.O: up 1.5% BUZZ- Jumps after extending partnership with NY health department ** Reinsurance Group of America RGA.N: down 6.5% BUZZ- Falls on $500 mln stock offering ** Crowdstrike Holdings Inc CRWD.O: up 5.4% BUZZ- Set to open at over 9-month high on surprise profit ** American Airlines Group Inc AAL.O: up 5.5% ** Delta Air Lines Inc DAL.N: up 6.1% ** United Airlines Holdings Inc UAL.O: up 9.0% ** SouthWest Airlines Co LUV.N: up 5.2% BUZZ- U.S. airlines: Cowen sees 20% drop in fleets, pilot workforce after COVID-19 ** Campbell Soup Co CPB.N: down 5.7% BUZZ- Gains on raised 2020 outlook, upbeat Q3 ** Gilead Sciences Inc GILD.O: up 1.3% BUZZ- SVB Leerink sees $7 bln sales from COVID-19 drug, upgrades ** Cracker Barrel Old Country Store Inc CBRL.O: up 9.9% BUZZ- SunTrust raises to "buy" on better margins, lower COVID-19 risk ** Evofem Biosciences Inc EVFM.O: down 25.3% BUZZ- Slumps on discounted stock offering ** Microchip Technology Inc MCHP.O: up 10.7% BUZZ- Gains as Q1 forecast above Wall Street's ** FSD Pharma Inc HUGE.O: up 192.4% BUZZ- Surges on FDA nod to design study for potential COVID-19 treatment ** B&G Foods Inc BGS.N: down 0.1% BUZZ- B&G Foods: Rises on strong Q2 sales forecast ** Mattel Inc MAT.O: up 6.3% BUZZ- Up as Jefferies raises rating to 'buy', citing stable H2 ** RTW Retailwinds Inc RTW.N: down 43.0% BUZZ- Falls after co warns of bankruptcy filing ** Glu Mobile Inc GLUU.O: down 6.7% BUZZ- Stay-at-home winner Glu Mobile falls on stock offering plans ** American Eagle Outfitters Inc AEO.N: up 14.4% BUZZ- Rises on strong online sales, demand recovery ** Syneos Health SYNH.O: up 2.0% BUZZ- Rises as Q2 forecast above Wall St estimates ** Secoo Holding SECO.O: up 49.3% BUZZ-: Eyes best day ever on $100 mln investment from Qudian The 11 major S&P 500 sectors: Communication Services ET, the Dow Jones Industrial Average .DJI was up 1.50% at 26,127.63. The top three S&P 500 .PG.INX percentage gainers: ** Simon Property Group , up 14.3% ** Microchip Technology , up 10.7% ** Kimco Realty Corp , up 10.7% The top three S&P 500 .PL.INX percentage losers: ** Campbell Soup Co , down 5.7% ** Newmont Corp , down 4.6% ** Take Two Interactive Software Inc , down 4.3% The top three NYSE .PG.N percentage gainers: ** Medley Llc , up 52.1% ** Ashford Inc , up 46% ** Signet Jewelers , up 24.3% The top three NYSE .PL.N percentage losers: ** Direxion Daily S&P 500 High Beta Bear , down 14.1% ** China Online Education , down 14.1% ** Laredo Petroleum , down 13.9% The top three Nasdaq .PG.O percentage gainers: ** Fsd Pharma , up 192.4% ** Genius Brands International , up 69% ** Cassav Sciences Inc , up 54.9% The top three Nasdaq .PL.O percentage losers: ** Hebron Technology Co , down 26.5% ** Evofem Biosciences , down 25.3% ** Ameri Holdings Ord , down 23.7% ** Boeing Co BA.N: up 7.8% BUZZ- Rises after Daniel Loeb's Third point discloses stake ** Coty Inc COTY.N: up 6.4% BUZZ- In talks with Kim Kardashian for cosmetics line, shares jump ** Zoom Video Communications Inc ZM.O: up 6.3% BUZZ- Street View: Zoom's growth trajectory was impressive, but 'what's next?
|
** OpGen Inc OPGN.O: up 1.5% BUZZ- Jumps after extending partnership with NY health department ** Reinsurance Group of America RGA.N: down 6.5% BUZZ- Falls on $500 mln stock offering ** Crowdstrike Holdings Inc CRWD.O: up 5.4% BUZZ- Set to open at over 9-month high on surprise profit ** American Airlines Group Inc AAL.O: up 5.5% ** Delta Air Lines Inc DAL.N: up 6.1% ** United Airlines Holdings Inc UAL.O: up 9.0% ** SouthWest Airlines Co LUV.N: up 5.2% BUZZ- U.S. airlines: Cowen sees 20% drop in fleets, pilot workforce after COVID-19 ** Campbell Soup Co CPB.N: down 5.7% BUZZ- Gains on raised 2020 outlook, upbeat Q3 ** Gilead Sciences Inc GILD.O: up 1.3% BUZZ- SVB Leerink sees $7 bln sales from COVID-19 drug, upgrades ** Cracker Barrel Old Country Store Inc CBRL.O: up 9.9% BUZZ- SunTrust raises to "buy" on better margins, lower COVID-19 risk ** Evofem Biosciences Inc EVFM.O: down 25.3% BUZZ- Slumps on discounted stock offering ** Microchip Technology Inc MCHP.O: up 10.7% BUZZ- Gains as Q1 forecast above Wall Street's ** FSD Pharma Inc HUGE.O: up 192.4% BUZZ- Surges on FDA nod to design study for potential COVID-19 treatment ** B&G Foods Inc BGS.N: down 0.1% BUZZ- B&G Foods: Rises on strong Q2 sales forecast ** Mattel Inc MAT.O: up 6.3% BUZZ- Up as Jefferies raises rating to 'buy', citing stable H2 ** RTW Retailwinds Inc RTW.N: down 43.0% BUZZ- Falls after co warns of bankruptcy filing ** Glu Mobile Inc GLUU.O: down 6.7% BUZZ- Stay-at-home winner Glu Mobile falls on stock offering plans ** American Eagle Outfitters Inc AEO.N: up 14.4% BUZZ- Rises on strong online sales, demand recovery ** Syneos Health SYNH.O: up 2.0% BUZZ- Rises as Q2 forecast above Wall St estimates ** Secoo Holding SECO.O: up 49.3% BUZZ-: Eyes best day ever on $100 mln investment from Qudian The 11 major S&P 500 sectors: Communication Services Eikon search string for individual stock moves: STXBZ The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh U.S. stocks rise, lifted by a jump in Boeing shares on Wednesday, with investors remaining optimistic about an economic rebound from a coronavirus-led slump amid continuing social unrest in the country. ET, the Dow Jones Industrial Average .DJI was up 1.50% at 26,127.63.
|
5802.0
|
2020-06-03 00:00:00 UTC
|
Why Airline Shares Are Soaring Today
|
AAL
|
https://www.nasdaq.com/articles/why-airline-shares-are-soaring-today-2020-06-03
|
nan
|
nan
|
What happened
Wall Street is taking a glass-half-full approach on Wednesday, focusing on a continued easing of COVID-19 restrictions and a May jobs number that came in better than expected. There is evidence the economy is bouncing off of its lows, and that is good news for a range of sectors.
Airlines, among the companies hardest hit by the pandemic, are rallying on the hope for normalization. Shares of Spirit Airlines (NYSE: SAVE) soared 14% as of midday, while shares of United Airlines Holdings (NASDAQ: UAL), American Airlines Group (NASDAQ: AAL), Delta Air Lines (NYSE: DAL), Southwest Airlines (NYSE: LUV), and JetBlue Airways (NASDAQ: JBLU), and Alaska Air Group (NYSE: ALK) were all up more than 6% each.
So what
Airlines have been forced to scramble for their survival due to the pandemic, with traffic falling to just a fraction of normal levels and revenue all but drying up. The sector is stable, thanks in part to funds provided by the CARES Act stimulus plan, but if traffic does not return in the months to come, the industry is going to face liquidity issues.
Image source: Getty Images.
Given the current predicament, airline stocks in recent weeks have tended to trade along with the broader day-to-day sentiment on the health of the economy and the pace at which local markets are reopening. On Wednesday, the S&P 500 was up more than 1% on encouraging economic signs, and airlines jumped along with it.
U.S. employers reduced payrolls by about 2.8 million workers in May, but that was significantly better than the 9 million lost jobs economists had expected. And despite civil unrest, major cities including Chicago and New York said they intend to press forward with previous plans to reopen restaurants and other tourist attractions, a potential plus for airlines.
There is some geopolitical news impacting the sector as well. The U.S. Department of Transportation on Wednesday moved to block Chinese airlines from flying into the United States in response to China's failure to let United and Delta resume flights this week.
Although geopolitical tension is never good for business, the airlines are primarily focused on domestic travel for now. The loss of flying rights to China will cost some revenue, particularly in cargo. But there's plenty of time for the issues to be resolved as many expect it to take years before international service is ramped up to anything near pre-pandemic levels.
Now what
The news flow is optimistic, and the move higher by airline stocks makes sense. But investors should be warned there is still a lot that can go wrong from here.
We'll see in the coming weeks whether the reopening of cities, or the civil unrest, will lead to a second wave of the pandemic, and if so, how travelers and government officials will react. Even if all goes well and there is no second wave, the U.S. economy is likely to need time to recover.
Given the uncertainty, it is wise for investors who want to buy into this rally to focus on top operators. With each passing day, the chances of the airlines surviving the COVID-19 crisis are rising, but there are still a lot of reasons for concern about the sector.
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 April 16, 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, JetBlue Airways, and Southwest Airlines. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Shares of Spirit Airlines (NYSE: SAVE) soared 14% as of midday, while shares of United Airlines Holdings (NASDAQ: UAL), American Airlines Group (NASDAQ: AAL), Delta Air Lines (NYSE: DAL), Southwest Airlines (NYSE: LUV), and JetBlue Airways (NASDAQ: JBLU), and Alaska Air Group (NYSE: ALK) were all up more than 6% each. The sector is stable, thanks in part to funds provided by the CARES Act stimulus plan, but if traffic does not return in the months to come, the industry is going to face liquidity issues. Given the current predicament, airline stocks in recent weeks have tended to trade along with the broader day-to-day sentiment on the health of the economy and the pace at which local markets are reopening.
|
Shares of Spirit Airlines (NYSE: SAVE) soared 14% as of midday, while shares of United Airlines Holdings (NASDAQ: UAL), American Airlines Group (NASDAQ: AAL), Delta Air Lines (NYSE: DAL), Southwest Airlines (NYSE: LUV), and JetBlue Airways (NASDAQ: JBLU), and Alaska Air Group (NYSE: ALK) were all up more than 6% each. See the 10 stocks *Stock Advisor returns as of April 16, 2020 Lou Whiteman owns shares of Delta Air Lines and Spirit Airlines. The Motley Fool recommends Alaska Air Group, Delta Air Lines, JetBlue Airways, and Southwest Airlines.
|
Shares of Spirit Airlines (NYSE: SAVE) soared 14% as of midday, while shares of United Airlines Holdings (NASDAQ: UAL), American Airlines Group (NASDAQ: AAL), Delta Air Lines (NYSE: DAL), Southwest Airlines (NYSE: LUV), and JetBlue Airways (NASDAQ: JBLU), and Alaska Air Group (NYSE: ALK) were all up more than 6% each. See the 10 stocks *Stock Advisor returns as of April 16, 2020 Lou Whiteman owns shares of Delta Air Lines and Spirit Airlines. The Motley Fool recommends Alaska Air Group, Delta Air Lines, JetBlue Airways, and Southwest Airlines.
|
Shares of Spirit Airlines (NYSE: SAVE) soared 14% as of midday, while shares of United Airlines Holdings (NASDAQ: UAL), American Airlines Group (NASDAQ: AAL), Delta Air Lines (NYSE: DAL), Southwest Airlines (NYSE: LUV), and JetBlue Airways (NASDAQ: JBLU), and Alaska Air Group (NYSE: ALK) were all up more than 6% each. Even if all goes well and there is no second wave, the U.S. economy is likely to need time to recover. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.
|
5803.0
|
2020-06-02 00:00:00 UTC
|
While American Airlines May Barely Survive, AAL Stock Still Could Jump
|
AAL
|
https://www.nasdaq.com/articles/while-american-airlines-may-barely-survive-aal-stock-still-could-jump-2020-06-02
|
nan
|
nan
|
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
I’ve changed my mind about American Airlines (NASDAQ:AAL). I previously wrote that AAL stock would not survive its crushing debt. But several recent events and actions by the company prompted some second thoughts. I also changed my estimates of the company’s cash burn this year and EBITDA next year.
Source: GagliardiPhotography / Shutterstock.com
And there is one more practical issue. The stock has not fallen as I had forecast, making me believe the worst is already discounted into the present price, which opened the month of June at $10.50 per share. That was 8.9% higher than when I last wrote about AAL stock on May 19, when it was $9.64 per share.
Yet, the release of an internal email on pending staff cuts and management’s recent investor update helped changed my mind about American Airlines. I realized that the company is likely to survive … although just barely.
Chapter 11 not an Option
Why did I change my mind? First, there was the May 27 Bernstein 2020 Strategic Decisions Conference. At the conference, CEO Doug Parker, made it clear that bankruptcy will not be an option for them.
Responding to an analyst’s question, he said that he does not see bankruptcy as a “financial tool.” More of a “failure,” Parker said. But what impressed me most, was what he said next: “I think our job is to preserve shareholder value. And that is what we are going to do.”
He went on to point out that the present crisis is a demand crisis, not an overcapacity crisis. In the past, too many airlines with too much capacity were the reasons why some airline bankruptcies, even liquidations, had to occur. This time, it is a matter of the demand for airline travel to slowly return over time. The issue, then, is for airlines to manage their liquidity through that period.
7 5G Stocks to Buy for the Future of Telecom
The CEO and his CFO discuss at length the carrier’s ability to reduce the cash burn. They implied that the company could get it down to about $40 million per day, with no revenue by the end of the third quarter. With a pickup in demand, the airline’s cash burn would slow to $20 million per day by the end of the third quarter.
That works out to just $1.82 billion in burn by Q4. I previously estimated there would be $6 billion in cash burn during Q3 and Q4. I don’t see that now — probably just $3.5 billion in Q3 and $1.8 billion in Q4. Along with $6.7 billion in Q2, the total burn through from March 31 forward will be just $12 billion.
Liquidity Should Cover the Burn
American Airlines said in its Q1 earnings release on April 30 that it expects to end Q2 with $11 billion in liquidity. That would be more than enough to cover the estimated $5.3 billion in cash burn during Q3 and Q4. However, I believe this includes an estimated injection of $4.75 billion from a loan under the CARES Act.
This assumes that the cash burn will drop to $50 million per day by the end of the second quarter, and $20 million per day by the end of the third quarter.
Based on this model for the company, it will turn cash flow positive sometime during the first quarter or second quarter of 2021. At that point, the issue of liquidity will be moot.
Airport Checkpoint Traffic Improvements
To be sure, all this is also based on an uptick in air travel. As I pointed out in my last article, TSA numbers for airport traffic show a significant increase in travelers queuing up to take off their shoes and belts. You can see this in the TSA daily checkpoint traffic numbers.
For example, in the past month, travel traffic has now increased. You can see this in the table I have prepared at the right.
Source: Mark R. Hake, CFA
It shows that in the last month, the year-over-year declines in checkpoint traffic have improved.
A month ago, the drop in TSA airport traffic was 94.6% YoY for the week ending April 30. A month later, the drop had improved by almost 7 percentage points to 87.7%.
If this trend continues, the quarterly pickup in traffic should be significant, especially over the summer months.
What to do With AAL Stock?
Buying AAL stock will be a speculative play for most investors. Nevertheless, I now believe that the company will survive and that management seems to have enough liquidity to last through the end of the year.
However, I really do not yet know how to model the company’s true value. Shareholders’ equity and book value per share are still negative. Moreover, it is too soon to picture what real value will be by next year because there is no way to estimate real demand for travel.
In addition, if the company has to take on further debt, that will degrade its estimated true value. So, for right now, I suspect that American Airlines stock is going to survive, but it may be just barely.
One thing is for sure, though. If the travel traffic numbers continue to pick up, and if American can lower its cash burn, AAL stock will jump. It will move up well before there are any definite numbers that can justify its rise.
The stock will tend to discount better numbers on any sign of continued improvement. I suspect that is probably reason enough for speculative investors to ump into AAL stock.
As of this writing, Mark Hake, CFA does not hold a position in any of the aforementioned securities. Mark Hake runs the Total Yield Value Guide which you can review here.
The post While American Airlines May Barely Survive, AAL Stock Still Could Jump appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
InvestorPlace - Stock Market News, Stock Advice & Trading Tips I’ve changed my mind about American Airlines (NASDAQ:AAL). I previously wrote that AAL stock would not survive its crushing debt. That was 8.9% higher than when I last wrote about AAL stock on May 19, when it was $9.64 per share.
|
The post While American Airlines May Barely Survive, AAL Stock Still Could Jump appeared first on InvestorPlace. InvestorPlace - Stock Market News, Stock Advice & Trading Tips I’ve changed my mind about American Airlines (NASDAQ:AAL). I previously wrote that AAL stock would not survive its crushing debt.
|
InvestorPlace - Stock Market News, Stock Advice & Trading Tips I’ve changed my mind about American Airlines (NASDAQ:AAL). If the travel traffic numbers continue to pick up, and if American can lower its cash burn, AAL stock will jump. I previously wrote that AAL stock would not survive its crushing debt.
|
InvestorPlace - Stock Market News, Stock Advice & Trading Tips I’ve changed my mind about American Airlines (NASDAQ:AAL). I previously wrote that AAL stock would not survive its crushing debt. That was 8.9% higher than when I last wrote about AAL stock on May 19, when it was $9.64 per share.
|
5804.0
|
2020-06-02 00:00:00 UTC
|
U.S. stocks futures hit three-month high on prospects of economic recovery
|
AAL
|
https://www.nasdaq.com/articles/u.s.-stocks-futures-hit-three-month-high-on-prospects-of-economic-recovery-2020-06-02
|
nan
|
nan
|
By Devik Jain
June 2 (Reuters) - U.S. stock index futures hit a three-month high on Tuesday as hopes of a rebound from a coronavirus-led economic slump prevailed over fears of disruption from widespread protests over race in the country.
Some of the worst-hit stocks in the travel sector, including American Airlines Group Inc AAL.O, United Airlines UAL.O, Norwegian Cruise Line NCLH.N and Carnival Corp CCL.N, climbed between 3.1% and 5.0% in premarket trading.
Economic data pointing to a quick recovery, trillions of dollars in stimulus and a restart in business have helped the S&P 500 .SPX climb about 38% from its March lows, leaving it only about 11% below its Feb. 19 record high.
Investors, however, are keeping a close eye on Sino-U.S. tensions and protests in the United States over the death of a black man in police custody.
Demonstrators set fire to a strip mall in Los Angeles, looted stores in New York City and at least five U.S. police were hit by gunfire, hours after President Donald Trump vowed to deploy the U.S. military to regain control of the streets.
At 6:15 a.m. ET, Dow e-minis 1YMcv1 were up 184 points, or 0.72%. S&P 500 e-minis EScv1 were up 19.25 points, or 0.63% and Nasdaq 100 e-minis NQcv1 were up 67.25 points, or 0.7%.
(Reporting by Devik Jain in Bengaluru; Editing by Saumyadeb Chakrabarty)
((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.
|
Some of the worst-hit stocks in the travel sector, including American Airlines Group Inc AAL.O, United Airlines UAL.O, Norwegian Cruise Line NCLH.N and Carnival Corp CCL.N, climbed between 3.1% and 5.0% in premarket trading. By Devik Jain June 2 (Reuters) - U.S. stock index futures hit a three-month high on Tuesday as hopes of a rebound from a coronavirus-led economic slump prevailed over fears of disruption from widespread protests over race in the country. Economic data pointing to a quick recovery, trillions of dollars in stimulus and a restart in business have helped the S&P 500 .SPX climb about 38% from its March lows, leaving it only about 11% below its Feb. 19 record high.
|
Some of the worst-hit stocks in the travel sector, including American Airlines Group Inc AAL.O, United Airlines UAL.O, Norwegian Cruise Line NCLH.N and Carnival Corp CCL.N, climbed between 3.1% and 5.0% in premarket trading. By Devik Jain June 2 (Reuters) - U.S. stock index futures hit a three-month high on Tuesday as hopes of a rebound from a coronavirus-led economic slump prevailed over fears of disruption from widespread protests over race in the country. S&P 500 e-minis EScv1 were up 19.25 points, or 0.63% and Nasdaq 100 e-minis NQcv1 were up 67.25 points, or 0.7%.
|
Some of the worst-hit stocks in the travel sector, including American Airlines Group Inc AAL.O, United Airlines UAL.O, Norwegian Cruise Line NCLH.N and Carnival Corp CCL.N, climbed between 3.1% and 5.0% in premarket trading. By Devik Jain June 2 (Reuters) - U.S. stock index futures hit a three-month high on Tuesday as hopes of a rebound from a coronavirus-led economic slump prevailed over fears of disruption from widespread protests over race in the country. Demonstrators set fire to a strip mall in Los Angeles, looted stores in New York City and at least five U.S. police were hit by gunfire, hours after President Donald Trump vowed to deploy the U.S. military to regain control of the streets.
|
Some of the worst-hit stocks in the travel sector, including American Airlines Group Inc AAL.O, United Airlines UAL.O, Norwegian Cruise Line NCLH.N and Carnival Corp CCL.N, climbed between 3.1% and 5.0% in premarket trading. By Devik Jain June 2 (Reuters) - U.S. stock index futures hit a three-month high on Tuesday as hopes of a rebound from a coronavirus-led economic slump prevailed over fears of disruption from widespread protests over race in the country. Economic data pointing to a quick recovery, trillions of dollars in stimulus and a restart in business have helped the S&P 500 .SPX climb about 38% from its March lows, leaving it only about 11% below its Feb. 19 record high.
|
5805.0
|
2020-06-02 00:00:00 UTC
|
Wall Street set for higher open on prospects of economic recovery
|
AAL
|
https://www.nasdaq.com/articles/wall-street-set-for-higher-open-on-prospects-of-economic-recovery-2020-06-02
|
nan
|
nan
|
By Devik Jain
June 2 (Reuters) - Wall Street's main indexes were set to hit fresh three-month highs on Tuesday as optimism over reopening businesses overshadowed fears of more disruptions from protests in the country over the death of a black man while in police custody.
Some of the worst-hit stocks in the travel sector, including American Airlines Group Inc AAL.O, United Airlines UAL.O, Norwegian Cruise Line NCLH.N and Carnival Corp CCL.N, rose between 1.3% and 2.9% in premarket trading.
Improving economic data, trillions of dollars in stimulus and a restart of business have helped the S&P 500 .SPX climb about 38% from its March lows, leaving it only about 11% below its Feb. 19 record high.
Investors, however, are keeping a close eye on Sino-U.S. tensions and anti-police brutality marches and rallies that have often turned violent in many cities.
Demonstrators set fire to a strip mall in Los Angeles, looted stores in New York City and at least five U.S. police officers were hit by gunfire, hours after President Donald Trump vowed to deploy the U.S. military to regain control of the streets.
"The reopening of the country and getting back to business is a much larger input into the equation versus what it is seen primarily as a temporary shutdown of sporadic businesses in the major cities that the demonstrations are actually causing the most damage," said Art Hogan, chief market strategist at National Securities in New York.
"It is an emotionally charged issue which is less economically apparent."
At 8:13 a.m. ET, Dow e-minis 1YMcv1 were up 121 points, or 0.48%. S&P 500 e-minis EScv1 were up 11.75 points, or 0.38% and Nasdaq 100 e-minis NQcv1 were up 27.25 points, or 0.28%.
Shares of Western Union WU.N jumped 10.3% after a report the money transfer company has made an offer to buy its smaller rival MoneyGram International Inc MGI.O.
MoneyGram shares soared 51.4%.
(Reporting by Devik Jain and Medha Singh in Bengaluru, Pawel Goraj in Gdansk; Editing by Saumyadeb Chakrabarty, Bernard Orr)
((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.
|
Some of the worst-hit stocks in the travel sector, including American Airlines Group Inc AAL.O, United Airlines UAL.O, Norwegian Cruise Line NCLH.N and Carnival Corp CCL.N, rose between 1.3% and 2.9% in premarket trading. By Devik Jain June 2 (Reuters) - Wall Street's main indexes were set to hit fresh three-month highs on Tuesday as optimism over reopening businesses overshadowed fears of more disruptions from protests in the country over the death of a black man while in police custody. Improving economic data, trillions of dollars in stimulus and a restart of business have helped the S&P 500 .SPX climb about 38% from its March lows, leaving it only about 11% below its Feb. 19 record high.
|
Some of the worst-hit stocks in the travel sector, including American Airlines Group Inc AAL.O, United Airlines UAL.O, Norwegian Cruise Line NCLH.N and Carnival Corp CCL.N, rose between 1.3% and 2.9% in premarket trading. By Devik Jain June 2 (Reuters) - Wall Street's main indexes were set to hit fresh three-month highs on Tuesday as optimism over reopening businesses overshadowed fears of more disruptions from protests in the country over the death of a black man while in police custody. S&P 500 e-minis EScv1 were up 11.75 points, or 0.38% and Nasdaq 100 e-minis NQcv1 were up 27.25 points, or 0.28%.
|
Some of the worst-hit stocks in the travel sector, including American Airlines Group Inc AAL.O, United Airlines UAL.O, Norwegian Cruise Line NCLH.N and Carnival Corp CCL.N, rose between 1.3% and 2.9% in premarket trading. By Devik Jain June 2 (Reuters) - Wall Street's main indexes were set to hit fresh three-month highs on Tuesday as optimism over reopening businesses overshadowed fears of more disruptions from protests in the country over the death of a black man while in police custody. "The reopening of the country and getting back to business is a much larger input into the equation versus what it is seen primarily as a temporary shutdown of sporadic businesses in the major cities that the demonstrations are actually causing the most damage," said Art Hogan, chief market strategist at National Securities in New York.
|
Some of the worst-hit stocks in the travel sector, including American Airlines Group Inc AAL.O, United Airlines UAL.O, Norwegian Cruise Line NCLH.N and Carnival Corp CCL.N, rose between 1.3% and 2.9% in premarket trading. By Devik Jain June 2 (Reuters) - Wall Street's main indexes were set to hit fresh three-month highs on Tuesday as optimism over reopening businesses overshadowed fears of more disruptions from protests in the country over the death of a black man while in police custody. Improving economic data, trillions of dollars in stimulus and a restart of business have helped the S&P 500 .SPX climb about 38% from its March lows, leaving it only about 11% below its Feb. 19 record high.
|
5806.0
|
2020-06-02 00:00:00 UTC
|
S&P 500, Dow scale fresh three-month peaks
|
AAL
|
https://www.nasdaq.com/articles/sp-500-dow-scale-fresh-three-month-peaks-2020-06-02
|
nan
|
nan
|
By Devik Jain and Medha Singh
June 2 (Reuters) - The S&P 500 and the Dow Jones indexes hit new three-month highs on Tuesday on prevailing optimism around the reopening of businesses, with investors remaining cautious around more disruptions from protests in the country over the death of a black man while in police custody.
Some of the worst-hit stocks in the travel sector, including American Airlines Group Inc AAL.O, United Airlines UAL.O, Norwegian Cruise Line NCLH.N and Carnival Corp CCL.N, rose between 1.5% and 2.7%.
Improving economic data, trillions of dollars in stimulus and the restarting of businesses have helped the S&P 500 .SPX climb about 38% from its March lows, leaving it only about 11% below its Feb. 19 record high.
But investors are keeping a close eye on Sino-U.S. tensions and anti-police brutality marches and rallies that have often turned violent in many cities.
Demonstrators set fire to a strip mall in Los Angeles, looted stores in New York City and at least five U.S. police officers were hit by gunfire, hours after President Donald Trump vowed to deploy the U.S. military to regain control of the streets.
"The reopening of the country and getting back to business is a much larger input into the equation versus what it is seen primarily as a temporary shutdown of sporadic businesses in the major cities that the demonstrations are actually causing the most damage," said Art Hogan, chief market strategist at National Securities in New York.
At 9:55 a.m. ET, the Dow Jones Industrial Average .DJI was up 117.26 points, or 0.46%, at 25,592.28, the S&P 500 .SPX was up 5.38 points, or 0.18%, at 3,061.11. The Nasdaq Composite .IXIC was down 16.48 points, or 0.17%, at 9,535.57.
Cyclical sectors, including financials .SPSY and energy .SPNY, were favoured among the 11 major S&P sectors in "a sign that (the rally at) these levels and beyond can be sustained," said Thomas Hayes, managing member at Great Hill Capital Llc in New York.
Technology-focused companies, including Amazon.com AMZN.O, Facebook Inc FB.O and Apple Inc AAPL.O which have led the market recovery, were marginally lower on Tuesday.
Shares of Western Union WU.N jumped 11.9% after a report the money transfer company has made an offer to buy its smaller rival MoneyGram International Inc MGI.O.
MoneyGram shares soared 31.3%.
Advancing issues outnumbered decliners by a 2.63-to-1 ratio on the NYSE and by a 1.72-to-1 ratio on the Nasdaq.
The S&P index recorded five new 52-week highs, while the Nasdaq recorded 40 new highs. Neither indexes recorded new lows.
(Reporting by Devik Jain and Medha Singh in Bengaluru, Pawel Goraj in Gdansk; Editing by Saumyadeb Chakrabarty, Bernard Orr and Uttaresh.V)
((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.
|
Some of the worst-hit stocks in the travel sector, including American Airlines Group Inc AAL.O, United Airlines UAL.O, Norwegian Cruise Line NCLH.N and Carnival Corp CCL.N, rose between 1.5% and 2.7%. By Devik Jain and Medha Singh June 2 (Reuters) - The S&P 500 and the Dow Jones indexes hit new three-month highs on Tuesday on prevailing optimism around the reopening of businesses, with investors remaining cautious around more disruptions from protests in the country over the death of a black man while in police custody. Improving economic data, trillions of dollars in stimulus and the restarting of businesses have helped the S&P 500 .SPX climb about 38% from its March lows, leaving it only about 11% below its Feb. 19 record high.
|
Some of the worst-hit stocks in the travel sector, including American Airlines Group Inc AAL.O, United Airlines UAL.O, Norwegian Cruise Line NCLH.N and Carnival Corp CCL.N, rose between 1.5% and 2.7%. By Devik Jain and Medha Singh June 2 (Reuters) - The S&P 500 and the Dow Jones indexes hit new three-month highs on Tuesday on prevailing optimism around the reopening of businesses, with investors remaining cautious around more disruptions from protests in the country over the death of a black man while in police custody. The S&P index recorded five new 52-week highs, while the Nasdaq recorded 40 new highs.
|
Some of the worst-hit stocks in the travel sector, including American Airlines Group Inc AAL.O, United Airlines UAL.O, Norwegian Cruise Line NCLH.N and Carnival Corp CCL.N, rose between 1.5% and 2.7%. By Devik Jain and Medha Singh June 2 (Reuters) - The S&P 500 and the Dow Jones indexes hit new three-month highs on Tuesday on prevailing optimism around the reopening of businesses, with investors remaining cautious around more disruptions from protests in the country over the death of a black man while in police custody. "The reopening of the country and getting back to business is a much larger input into the equation versus what it is seen primarily as a temporary shutdown of sporadic businesses in the major cities that the demonstrations are actually causing the most damage," said Art Hogan, chief market strategist at National Securities in New York.
|
Some of the worst-hit stocks in the travel sector, including American Airlines Group Inc AAL.O, United Airlines UAL.O, Norwegian Cruise Line NCLH.N and Carnival Corp CCL.N, rose between 1.5% and 2.7%. By Devik Jain and Medha Singh June 2 (Reuters) - The S&P 500 and the Dow Jones indexes hit new three-month highs on Tuesday on prevailing optimism around the reopening of businesses, with investors remaining cautious around more disruptions from protests in the country over the death of a black man while in police custody. The S&P index recorded five new 52-week highs, while the Nasdaq recorded 40 new highs.
|
5807.0
|
2020-06-01 00:00:00 UTC
|
JetBlue Stock Might Be the Best Bet on Air Travel Recovery
|
AAL
|
https://www.nasdaq.com/articles/jetblue-stock-might-be-the-best-bet-on-air-travel-recovery-2020-06-01
|
nan
|
nan
|
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
So far in 2020, airline stocks, including JetBlue Airways (NASDAQ:JBLU), have been pummelled by the COVID-19 pandemic. Long-term shareholders have had to sit tight as JBLU stock has gone down over 40%. It is now hovering around $10.5.
Source: Roman Tiraspolsky / Shutterstock.com
Now as our economy opens up and recovery hopes outweigh virus worries, investors are wondering if June would be a good month to invest in JetBlue shares.
It is important for investors to appreciate that travel demand may not return to pre-coronavirus levels for several years, and I expect the domestic competitive landscape in the industry to evolve in the coming quarters.
Yet JetBlue management will likely be able to capitalize on various opportunities offered by such changes and possibilities. Therefore, if you are an investor with a 2-3 year time horizon, you may consider buying the dips. JBLU stock price would become especially attractive if it falls toward or even below $9.5.
How Q1 Results Came
In an average year, New York state-based JetBLue Airways carries over 42 million customers a year to more than 100 cities in the U.S., Caribbean, and Latin America. Before the coronavirus lockdown, it had an around 1,000 daily flights. Needless to say, since March, the reality is rather different.
7 Red-Hot Vaccine Stocks Racing to Develop a Coronavirus Cure
On May 7, the group reported its results for the first quarter 2020. Adjusted loss per share was 42 cents. A year ago, adjusted diluted earnings per share had been 16 cents. This was a wider-than-expected loss.
Revenue was $1.59 billion, or a decline of 15.1% YoY. Analysts were expecting revenue of 1.7 billion. Due to the lockdown, the airline saw a 52% decline in March revenue. Otherwise, it had had a rather solid start to the year-earlier in January and February.
Another metric airline analysts pay attention to is “Revenue passenger miles.” This measure of traffic declined by more than 18% YoY.
In the second half of March, its daily cash burn had been around $18 million. In May, management was hopeful for the number to be below $10 million a day. The airline ended the quarter with approximately $1.8 billion in cash and equivalents, or 22.2% of 2019 revenue.
Many investors have been encouraged by the cash levels the group has at hand. In case of a second coronavirus outbreak or another unexpected disruption to air travel in 2020, the airline will likely be in a safe position to survive the cross currents.
The airline has also reached an agreement with the U.S. Treasury to receive $936 million under the Payroll Support Program of the CARES Act. This payment consists of both $685 million in grants and $251 million in an unsecured term loan. And under the terms of the stimulus program, the group has issued approximately 2.6 million warrants to the U.S. Treasury.
In short, the headline numbers did not offer much to delight investors. However, the quarterly metrics had already been expected to be dismal, and the Street noted that the Q2 numbers expected in early August may not necessarily be any stronger, either.
For long-term investors, what matters more now whether JetBlue can survive 2020 to build a stronger base so that JBLU stock can reach a higher altitude.
Can JBLU Stock Price Recover Soon?
During Berkshire Hathaway’s (NYSE:BRK.A, NYSE:BRK.B) annual meeting in early May, Warren Buffett announced that he had sold his stake in four major U.S. carriers, i.e., American Airlines (NASDAQ:AAL), Delta Air Lines (NYSE:DAL), Southwest Airlines (NYSE:LUV) and (NASDAQ:UAL).
Over the past several weeks, investors have been debating whether Mr. Buffett was right to get out of the industry or whether airlines can somehow recover in the coming quarters.
Since the deregulation of the airline industry starting with the late 1970 first in the U.S. and then globally, low-cost airlines have become major disruptors. JetBlue started flying as a low-cost carrier in 2000 and managed to offer more ‘value’ than just low prices.
By the end of 2013 it had grown to become the fifth-largest passenger carrier in the U.S. based on revenue passenger miles. And the long-term price of JBLU stock is a testament to how successful its business model has been.
After the lows that the shares hit around $3.6 in March 2009, then in Feb 2020, they hit a 52-week high of $21.65. However, in March 2020, the adverse effects of the pandemic hit the headlines, and on March 23, JBLU stock fell to a 52-week low of $6.61. Since then, the price has recovered to around $10.5.
Needless to say, it will likely be a long road for JBLU stock to go back to the highs of $20 and above. However, over its history that spans two decades, JetBlue management has successfully evolved its strategy to embrace new opportunities both stateside and overseas.
In the long run, I expect that experience and agility to propel JBLU stock to new highs from where it is right now.
Investor Takeaway on JBLU Stock
Airlines, including JetBlue, have been among the hardest-hit businesses during the viral outbreak. And investors should be cautious about jumping into airline stocks. The industry would need a high tide to raise all of them. That positive development would possibly require consumers feeling safe enough to fly again forst and foremost.
As airlines get ready to resume operations partially, it will be crucial for JetBlue as well as its peers to make those flights profitable. After all, demand is likely to remain subdued in the rest of the year.
I would urge you to do further diligence in airline stocks and be rather selective on which one to put your hard-earned cash on.
Yet JBLU stock would likely get my attention, especially if there is any further weakness in price. You may want to wait for the release of the next quarterly results to see how passenger numbers are shaping up and where the group is in terms of both daily cash burn as well as balance sheet strength.
Tezcan Gecgil has worked in investment management for over two decades in the U.S. and U.K. In addition to formal higher education in the field, she has also completed all 3 levels of the Chartered Market Technician (CMT) examination. Her passion is for options trading based on technical analysis of fundamentally strong companies. She especially enjoys setting up weekly covered calls for income generation. As of this writing, Tezcan Gecgil did not hold a position in any of the aforementioned securities.
The post JetBlue Stock Might Be the Best Bet on Air Travel Recovery 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.
|
During Berkshire Hathaway’s (NYSE:BRK.A, NYSE:BRK.B) annual meeting in early May, Warren Buffett announced that he had sold his stake in four major U.S. carriers, i.e., American Airlines (NASDAQ:AAL), Delta Air Lines (NYSE:DAL), Southwest Airlines (NYSE:LUV) and (NASDAQ:UAL). Source: Roman Tiraspolsky / Shutterstock.com Now as our economy opens up and recovery hopes outweigh virus worries, investors are wondering if June would be a good month to invest in JetBlue shares. It is important for investors to appreciate that travel demand may not return to pre-coronavirus levels for several years, and I expect the domestic competitive landscape in the industry to evolve in the coming quarters.
|
During Berkshire Hathaway’s (NYSE:BRK.A, NYSE:BRK.B) annual meeting in early May, Warren Buffett announced that he had sold his stake in four major U.S. carriers, i.e., American Airlines (NASDAQ:AAL), Delta Air Lines (NYSE:DAL), Southwest Airlines (NYSE:LUV) and (NASDAQ:UAL). InvestorPlace - Stock Market News, Stock Advice & Trading Tips So far in 2020, airline stocks, including JetBlue Airways (NASDAQ:JBLU), have been pummelled by the COVID-19 pandemic. Investor Takeaway on JBLU Stock Airlines, including JetBlue, have been among the hardest-hit businesses during the viral outbreak.
|
During Berkshire Hathaway’s (NYSE:BRK.A, NYSE:BRK.B) annual meeting in early May, Warren Buffett announced that he had sold his stake in four major U.S. carriers, i.e., American Airlines (NASDAQ:AAL), Delta Air Lines (NYSE:DAL), Southwest Airlines (NYSE:LUV) and (NASDAQ:UAL). InvestorPlace - Stock Market News, Stock Advice & Trading Tips So far in 2020, airline stocks, including JetBlue Airways (NASDAQ:JBLU), have been pummelled by the COVID-19 pandemic. For long-term investors, what matters more now whether JetBlue can survive 2020 to build a stronger base so that JBLU stock can reach a higher altitude.
|
During Berkshire Hathaway’s (NYSE:BRK.A, NYSE:BRK.B) annual meeting in early May, Warren Buffett announced that he had sold his stake in four major U.S. carriers, i.e., American Airlines (NASDAQ:AAL), Delta Air Lines (NYSE:DAL), Southwest Airlines (NYSE:LUV) and (NASDAQ:UAL). The airline ended the quarter with approximately $1.8 billion in cash and equivalents, or 22.2% of 2019 revenue. Can JBLU Stock Price Recover Soon?
|
5808.0
|
2020-06-01 00:00:00 UTC
|
Delta Air Lines Stock Will Climb as Travelers Return to the Sky
|
AAL
|
https://www.nasdaq.com/articles/delta-air-lines-stock-will-climb-as-travelers-return-to-the-sky-2020-06-01
|
nan
|
nan
|
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Delta Air Lines (NYSE:DAL) looks like it will survive. As a result, I’ve changed my mind since I last wrote about the company. Just a few weeks ago I was worried that the company didn’t have enough liquidity for DAL stock to survive.
Source: Markus Mainka / Shutterstock.com
Now, I believe that Delta’s management is working to avoid bankruptcy at all costs.
As of Friday, May 29, DAL stock had fallen to $25.21. This is down from $28.53 at the end of March, and $58.48 at the end of December 2019. Moreover, the stock has been bouncing around in the mid-$20 range during most of the second quarter.
So far, the market does not seem to believe the company will fail. But there is no real conviction in the stock price that indicates the company will rebound any time soon.
At a recent conference, Delta said that its main goal is to reduce its cash burn down to zero by the end of the year. As of May 19, the company said its daily cash burn was down to $50 million per day, according to CFO Paul Jacobson. Delta also expects the daily burn to drop to $40 million per day by the end of June.
7 5G Stocks to Buy for the Future of Telecom
This is similar to the cash burn at American Airlines (NASDAQ:AAL). I pointed this out in a recent article where I also show that management at that airline hopes to get its net cash burn (after revenue) to $20 million per day. That goal is for the end of Q3 2020.
Both airlines expect demand to pick up, which will allow cash flow to break even by the end of the year.
Liquidity Should Cover the Cash Burn at Delta
At the same conference on May 19, the CFO said its cash balance will be $12 billion by Q2 end. That is because it expects cash burn will be cut in half by the end of Q2. With that information, we can measure whether there will be enough liquidity to last until break-even cash flow.
For example, let’s assume the average daily cash burn rate during Q2 will be $60 million per day. That will cost the company about $5.5 billion during Q2. Assuming the company still has $12 billion by the end of June, the Q3 cash drawdown will be much slower.
If the average daily rate in Q3 is $30 million (halfway between $40 million at the end of June and $20 million at the end of September), the cost will be just $2.7 billion. I assume that the burn rate includes things like changes in working capital and capital expenditure spending. This would keep the cash balance at $9.3 billion even at the end of September.
Assuming the Q4 burn rate slows to $15 million per day on average, the total cost will be just $1.4 billion. That would still leave available cash of $7.9 billion by the end of the year. This is when the company says it expects to reach break-even cash flow.
Moreover, the company says it will have $6 billion to $7 billion in unencumbered assets by the end of Q2. That means theoretically it could use these assets to borrow more money than the $12 billion it will have available by June 30.
So based on these estimates by the company, I feel fairly confident that the company will survive.
What Will Happen to DAL Stock?
Right now the book value per share for DAL stock is $22.52. So it is now trading a bit above that valuation. I now believe the stock will rally based on other factors than its balance sheet.
For example, once there is the slightest evidence that airline travel is starting to pick up the stock will jump. Once “demand,” as the airline calls it, appears to be rising, DAL stock will move up quickly. Traders will rush forward and then ask important questions later.
This is typical of how markets work. They tend to discount the future six to nine months ahead of time in the stock market. I suspect that means that if summer travel picks up, DAL stock will move up quickly by the end of Q3.
As of this writing, Mark Hake, CFA does not hold a position in any of the aforementioned securities. Mark Hake runs the Total Yield Value Guide which you can review here.
The post Delta Air Lines Stock Will Climb as Travelers Return to the Sky appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
7 5G Stocks to Buy for the Future of Telecom This is similar to the cash burn at American Airlines (NASDAQ:AAL). I pointed this out in a recent article where I also show that management at that airline hopes to get its net cash burn (after revenue) to $20 million per day. The post Delta Air Lines Stock Will Climb as Travelers Return to the Sky appeared first on InvestorPlace.
|
7 5G Stocks to Buy for the Future of Telecom This is similar to the cash burn at American Airlines (NASDAQ:AAL). InvestorPlace - Stock Market News, Stock Advice & Trading Tips Delta Air Lines (NYSE:DAL) looks like it will survive. For example, let’s assume the average daily cash burn rate during Q2 will be $60 million per day.
|
7 5G Stocks to Buy for the Future of Telecom This is similar to the cash burn at American Airlines (NASDAQ:AAL). InvestorPlace - Stock Market News, Stock Advice & Trading Tips Delta Air Lines (NYSE:DAL) looks like it will survive. Liquidity Should Cover the Cash Burn at Delta At the same conference on May 19, the CFO said its cash balance will be $12 billion by Q2 end.
|
7 5G Stocks to Buy for the Future of Telecom This is similar to the cash burn at American Airlines (NASDAQ:AAL). InvestorPlace - Stock Market News, Stock Advice & Trading Tips Delta Air Lines (NYSE:DAL) looks like it will survive. Liquidity Should Cover the Cash Burn at Delta At the same conference on May 19, the CFO said its cash balance will be $12 billion by Q2 end.
|
5809.0
|
2020-06-01 00:00:00 UTC
|
Why Airline Stocks Are Climbing Today
|
AAL
|
https://www.nasdaq.com/articles/why-airline-stocks-are-climbing-today-2020-06-01
|
nan
|
nan
|
What happened
Airline shares took flight Monday after another weekend of positive data points suggesting travel demand is slowly returning and a positive write-up of the industry in Barron's.
Spirit Airlines (NYSE: SAVE), one of the focuses of the Barron's article, gained 10% as of 11 a.m., leading the way among airlines. But the whole sector had momentum on Monday. Shares of American Airlines Group (NASDAQ: AAL), United Airlines Holdings (NASDAQ: UAL), Southwest Airlines (NYSE: LUV), Delta Air Lines (NYSE: DAL), Hawaiian Holdings (NASDAQ: HA), Alaska Air Group (NYSE: ALK), JetBlue Airways (NASDAQ: JBLU), and Allegiant Travel (NASDAQ: ALGT) all traded up about 5%.
So what
The airlines were hit hard by the COVID-19 pandemic, which has cut global travel demand to near zero. Airline stocks lost half their value or more in March and early April but have since stabilized thanks to government assistance as part of the CARES Act stimulus plan and private fundraising efforts.
Image source: Getty Images.
The airlines are stable, but with traffic still down 90% or more year over year, the industry remains vulnerable. Companies are going to need passenger demand to return so they don't run out of cash in the months to come.
The weekend provided fresh evidence we are bouncing off the lows in terms of travel interest. About 620,000 travelers passed through Transportation Security Administration checkpoints on May 30 and 31. That's down dramatically compared to the 4.6 million travelers screened during the same two calendar days a year prior but nearly triple the number of passengers screened the first weekend in April.
If nothing else, the trend is moving in the right direction, and it suggests that a Memorial Day uptick was not a one-off holiday weekend phenomenon but instead a real sign of travel slowly beginning to normalize.
Barron's has noticed too, writing over the weekend that airlines have done a good job bolstering their balance sheets, adopting distancing guidelines, and reassuring customers by deep-cleaning planes. Domestic travel is expected to return first, and the widely read financial weekly highlights Southwest, Spirit, and Delta as stocks that look particularly interesting.
Now what
We seem to be heading in the right direction, but investors need to remember we still have a long way to go. It will likely take years until travel volumes return to prepandemic levels, and it's possible some of the more lucrative parts of the business, including corporate business travel and international flying, will never be the same.
I've been saying for a while now that I think it is safe to buy airline stocks, but given the uncertainty that still surrounds the pandemic and the economy, it is best to take small nibbles and limit the buying to the top airlines in the sector.
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 April 16, 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.
|
Shares of American Airlines Group (NASDAQ: AAL), United Airlines Holdings (NASDAQ: UAL), Southwest Airlines (NYSE: LUV), Delta Air Lines (NYSE: DAL), Hawaiian Holdings (NASDAQ: HA), Alaska Air Group (NYSE: ALK), JetBlue Airways (NASDAQ: JBLU), and Allegiant Travel (NASDAQ: ALGT) all traded up about 5%. Airline stocks lost half their value or more in March and early April but have since stabilized thanks to government assistance as part of the CARES Act stimulus plan and private fundraising efforts. If nothing else, the trend is moving in the right direction, and it suggests that a Memorial Day uptick was not a one-off holiday weekend phenomenon but instead a real sign of travel slowly beginning to normalize.
|
Shares of American Airlines Group (NASDAQ: AAL), United Airlines Holdings (NASDAQ: UAL), Southwest Airlines (NYSE: LUV), Delta Air Lines (NYSE: DAL), Hawaiian Holdings (NASDAQ: HA), Alaska Air Group (NYSE: ALK), JetBlue Airways (NASDAQ: JBLU), and Allegiant Travel (NASDAQ: ALGT) all traded up about 5%. See the 10 stocks *Stock Advisor returns as of April 16, 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.
|
Shares of American Airlines Group (NASDAQ: AAL), United Airlines Holdings (NASDAQ: UAL), Southwest Airlines (NYSE: LUV), Delta Air Lines (NYSE: DAL), Hawaiian Holdings (NASDAQ: HA), Alaska Air Group (NYSE: ALK), JetBlue Airways (NASDAQ: JBLU), and Allegiant Travel (NASDAQ: ALGT) all traded up about 5%. What happened Airline shares took flight Monday after another weekend of positive data points suggesting travel demand is slowly returning and a positive write-up of the industry in Barron's. See the 10 stocks *Stock Advisor returns as of April 16, 2020 Lou Whiteman owns shares of Delta Air Lines and Spirit Airlines.
|
Shares of American Airlines Group (NASDAQ: AAL), United Airlines Holdings (NASDAQ: UAL), Southwest Airlines (NYSE: LUV), Delta Air Lines (NYSE: DAL), Hawaiian Holdings (NASDAQ: HA), Alaska Air Group (NYSE: ALK), JetBlue Airways (NASDAQ: JBLU), and Allegiant Travel (NASDAQ: ALGT) all traded up about 5%. I've been saying for a while now that I think it is safe to buy airline stocks, but given the uncertainty that still surrounds the pandemic and the economy, it is best to take small nibbles and limit the buying to the top airlines in the sector. * 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!
|
5810.0
|
2020-05-29 00:00:00 UTC
|
Wait for Another Pullback Before Buying American Airlines
|
AAL
|
https://www.nasdaq.com/articles/wait-for-another-pullback-before-buying-american-airlines-2020-05-30
|
nan
|
nan
|
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
[Editor’s Note: “Wait For Another Pullback Before Buying AAL Stock” was originally published April 22, 2020. It is regularly updated to include the most relevant information.]
AAL) Stock" width="300" height="169">
Source: GagliardiPhotography / Shutterstock.com
Novel coronavirus headwinds continue for American Airlines (NASDAQ:AAL). Since the outbreak first hit China, AAL stock has cratered from around $30 per share to just above $10 per share. But, could a low share price mean a solid “bottom-fishing” opportunity?
It depends. Airline stocks have moved higher in recent days, on optimism for a post-pandemic recovery. But, keep in mind the many fleas on this legacy carrier. Even before the pandemic affected air travel.
As I previously discussed, American Airlines already had a heavy debt load and other operating issues.
And despite the company receiving $5.8 billion in payroll support from the $2 trillion CARES Act stimulus package, they could burn through billions more as air travel volumes remain depressed.
The worst of the coronavirus in America may already be over. But, it could be years before airline stocks like American start rebounding again. With this in mind, today’s prices may not be enough to justify a buy in the near-term.
Yet, that doesn’t completely rule out American Airlines as a buy at lower prices. Let’s dive in, and see why a “wait-and-see” approach may be the best way to play this hard-hit airline stock.
Slow Recovery Means More Bad News for AAL Stock
Things may be starting to “return to normal.” But, don’t take that to mean smooth sailing ahead for the U.S. economy. The damage caused by the pandemic and its associated shutdowns could linger on throughout the year. And that’s especially the case for the airline industry.
There are many reasons why the stimulus package is far from being a “silver bullet” for American and the other airlines. Firstly, airlines continue to burn through cash at a rapid clip. This airline alone anticipates losing $70 million a day through June. In other words, over $2 billion a month, or $6 billion a quarter. Losses are expected to come down this summer, but will still be in the billions per month.
Also, don’t expect travelers to return to the skies right away. As our own Louis Navellier recently pointed out, the airline industry’s “new normal” doesn’t look too pretty. Social distancing and safety efforts are going to make air travel unattractive for quite some time.
This may explain why industry leaders like Airbus (OTCMKTS:EADSY) CEO Guillaume Faury say it could be “three to five years” before the industry recovers. With a long road to recovery, it’s tough to be confident in the near-term prospects for American.
Darkest Before the Dawn?
Things sound bleak for American Airlines. Yet, with shares bouncing back from single-digit to above $10 per share, we may be reaching a bottom. Granted, investors who bought on prior “dead cat bounces” in March and April lost out when shares continued to trend lower.
But, if shares retest prices in the single-digits, are the odds on your side? As InvestorPlace’s Tom Taulli wrote last month, it’s likely American Airlines survives coronavirus. Mainly because Washington won’t want to see an airline file for Chapter 11.
Yet, with Boeing (NYSE:BA) CEO Dave Calhoun predicting an airline bankruptcy in 2020, this risk should be top of mind. And considering American’s weak financials, this airline could be the leading candidate.
What does the airline itself say? Recently, CEO Doug Parker reassured investors, saying “we’re all going to be fine.” But, considering Parker said a few years back that the airline would never again go in the red, it’s tough to confident in his forecast.
In short, the current darkness may not be signalling that dawn is near. And at today’s valuation, risk of bankruptcy (which would wipe out shareholders) may not be fully priced into the stock.
Wait-and-See Is the Key With AAL Stock
When I last wrote about American Airlines stock, I said it was too early to buy but too late to go short. But now, I’m a bit more bearish. With Warren Buffett recently selling his airline stocks, and aviation industry leaders calling for continued challenges, shares may head lower.
On the other hand, airline stocks have trended higher, as speculators bet on a swift recovery. Yet, this excitement could quickly change course if reality does not match expectations.
That’s not to say the legacy carrier is going bankrupt, as some have hinted. But, it may be best to buy only when a rebound isn’t priced into the stock.
Bottom line: wait for American Airlines shares to head lower before entering a position. If shares fall back into the single-digits, the potential price appreciation could more than make up for the risk.
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 Wait for Another Pullback Before Buying American 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.
|
InvestorPlace - Stock Market News, Stock Advice & Trading Tips [Editor’s Note: “Wait For Another Pullback Before Buying AAL Stock” was originally published April 22, 2020. AAL) Stock" width="300" height="169"> Source: GagliardiPhotography / Shutterstock.com Novel coronavirus headwinds continue for American Airlines (NASDAQ:AAL). Since the outbreak first hit China, AAL stock has cratered from around $30 per share to just above $10 per share.
|
AAL) Stock" width="300" height="169"> Source: GagliardiPhotography / Shutterstock.com Novel coronavirus headwinds continue for American Airlines (NASDAQ:AAL). InvestorPlace - Stock Market News, Stock Advice & Trading Tips [Editor’s Note: “Wait For Another Pullback Before Buying AAL Stock” was originally published April 22, 2020. Since the outbreak first hit China, AAL stock has cratered from around $30 per share to just above $10 per share.
|
AAL) Stock" width="300" height="169"> Source: GagliardiPhotography / Shutterstock.com Novel coronavirus headwinds continue for American Airlines (NASDAQ:AAL). Wait-and-See Is the Key With AAL Stock When I last wrote about American Airlines stock, I said it was too early to buy but too late to go short. InvestorPlace - Stock Market News, Stock Advice & Trading Tips [Editor’s Note: “Wait For Another Pullback Before Buying AAL Stock” was originally published April 22, 2020.
|
Wait-and-See Is the Key With AAL Stock When I last wrote about American Airlines stock, I said it was too early to buy but too late to go short. InvestorPlace - Stock Market News, Stock Advice & Trading Tips [Editor’s Note: “Wait For Another Pullback Before Buying AAL Stock” was originally published April 22, 2020. AAL) Stock" width="300" height="169"> Source: GagliardiPhotography / Shutterstock.com Novel coronavirus headwinds continue for American Airlines (NASDAQ:AAL).
|
5811.0
|
2020-05-29 00:00:00 UTC
|
Southwest Is a Much Better Pick Now Than American Airlines Stock
|
AAL
|
https://www.nasdaq.com/articles/southwest-is-a-much-better-pick-now-than-american-airlines-stock-2020-05-29
|
nan
|
nan
|
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The last few weeks have been big for airline stocks. Moderna (NASDAQ:MRNA) gave the industry a glimmer of hope with a novel coronavirus vaccine update. States continue to reopen, and travel demand is on the rise. American Airlines (NASDAQ:AAL) stock has been a big beneficiary.
Source: GagliardiPhotography / Shutterstock.com
While a vaccine would be a Hail Mary pass for beleaguered airlines, I wouldn’t necessarily rush out to pick up AAL stock.
Why? Even if a vaccine comes out next autumn — and that would be an absolute best-case scenario — airlines will struggle to recover over the next few quarters. American Airlines simply isn’t well equipped to get through that struggle, making it a poor choice to play the rally in airline stocks.
Debt Is Weighing Down AAL Stock
From an investment standpoint, American Airlines’ biggest problem right now is debt. The firm is sitting on a $21.6 billion debt pile — high by any standard. AAL stock is easily one of the most debt-ridden airline names you can pick up right now.
United Airlines (NASDAQ:UAL) is the only other airline that comes close with long-term debt obligations of $13.2 billion. By contrast, Southwest Airlines (NYSE:LUV) is carrying just $2.3 billion worth of long-term debt.
Understandably, American is burning through cash right now as it works to stay afloat amid extremely challenging conditions. But that’s going to add up to a huge debt pile that will follow the firm around for quite some time.
InvestorPlace’s Mark Hake estimates the firm will be sitting under a $40 billion debt obligation by the end of the year. That’s disastrous from an investment standpoint because it means the company will be shelling out billions each year just to pay off the interest.
Should You Believe in the Vaccine Turnaround?
Some might argue that the prospect of a vaccine could bring a faster-than-expected recovery in the transport sector as it means borders would be open and people could move about freely. That may be true, but that scenario is unlikely to play out.
Even if we could be certain a vaccine was coming, there’s no way to predict how readily it would be accepted by Americans, let alone the rest of the world. Here’s a new drug that’s been pushed through the testing process as quickly as possible — will people trust it? There’s already been some pushback regarding a mandatory vaccination and a drug hasn’t even been approved yet.
Plus, there’s the added impact of the economic downturn that the world will be experiencing, vaccine or not. Unemployment is expected to remain in the double digits for the next few quarters, a fact that will likely keep many people from traveling. Not to mention that companies will cut business travel to the absolute bare minimum in an effort to save money.
American Airlines Isn’t All Bad
While things look bleak for airlines right now, it’s worth noting that demand will eventually recover. That’s especially true if a viable vaccine makes it to market. Regulators are already looking at ways to make airports safer while the coronavirus is still a factor.
But the world of airline travel will probably look very different, at least in the near term. That’s not great news for American because the firm will struggle to compete with domestic rivals like Southwest which are known for their low-cost models.
However when air travel does restart, American may offer an edge because of its business class seating options. Many travelers worried about contracting the coronavirus may want to avoid a crowded cabin. Companies like Southwest don’t offer first-class cabins.
But then again, other carriers like Delta Air Lines (NYSE:DAL) and United offer premium seating with more space, and those companies aren’t nearly as highly leveraged.
The Bottom Line
With all of the uncertainty surrounding the novel coronavirus and the future of the U.S. economy, AAL stock just isn’t worth the risk.
Investors who are keen to pick up an airline stock and play the sector’s recovery should be looking to Southwest, which boasts a far more solid balance sheet and will likely see its business recover faster as domestic travel returns at the end of the summer.
Laura Hoy has a Finance degree from Duquesne University and has been writing about financial markets for the past 8 years. Her work can be seen in a variety of publications including InvestorPlace, Benzinga, Yahoo Finance and CCN. As of this writing Laura Hoy did not hold a position in any of the aforementioned securities.
The post Southwest Is a Much Better Pick Now Than 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.
|
Source: GagliardiPhotography / Shutterstock.com While a vaccine would be a Hail Mary pass for beleaguered airlines, I wouldn’t necessarily rush out to pick up AAL stock. American Airlines (NASDAQ:AAL) stock has been a big beneficiary. Debt Is Weighing Down AAL Stock From an investment standpoint, American Airlines’ biggest problem right now is debt.
|
American Airlines (NASDAQ:AAL) stock has been a big beneficiary. Debt Is Weighing Down AAL Stock From an investment standpoint, American Airlines’ biggest problem right now is debt. Source: GagliardiPhotography / Shutterstock.com While a vaccine would be a Hail Mary pass for beleaguered airlines, I wouldn’t necessarily rush out to pick up AAL stock.
|
Debt Is Weighing Down AAL Stock From an investment standpoint, American Airlines’ biggest problem right now is debt. American Airlines (NASDAQ:AAL) stock has been a big beneficiary. Source: GagliardiPhotography / Shutterstock.com While a vaccine would be a Hail Mary pass for beleaguered airlines, I wouldn’t necessarily rush out to pick up AAL stock.
|
Debt Is Weighing Down AAL Stock From an investment standpoint, American Airlines’ biggest problem right now is debt. American Airlines (NASDAQ:AAL) stock has been a big beneficiary. Source: GagliardiPhotography / Shutterstock.com While a vaccine would be a Hail Mary pass for beleaguered airlines, I wouldn’t necessarily rush out to pick up AAL stock.
|
5812.0
|
2020-05-29 00:00:00 UTC
|
How This Week Highlights the Challenges Facing General Electric Stock
|
AAL
|
https://www.nasdaq.com/articles/how-this-week-highlights-the-challenges-facing-general-electric-stock-2020-05-29
|
nan
|
nan
|
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
I’ve been a skeptic toward General Electric (NYSE:GE) stock for some time now. Truthfully, I’m not too happy about it.
Source: Sundry Photography / Shutterstock.com
After all, General Electric once was one of America’s greatest and most innovative companies. It provided thousands of employees with stable jobs and generous retirement plans. GE stock was a core holding of pension funds and individual investors.
Sadly, that’s no longer the case. General Electric offers many fewer jobs: its workforce shrunk 28% worldwide in 2019. And GE stock, almost incredibly, touched a 29-year low this month. Its dividend has been cut — twice.
The reality is sad. But it’s still the reality. Investors need to react accordingly.
7 Red-Hot Vaccine Stocks Racing to Develop a Coronavirus Cure
While I still hold out hope for General Electric, I can’t yet recommend that investors put their own hard-earned money behind the company’s turnaround plans. Two pieces of news this week show why.
GE Exits the Lighting Business
On Wednesday, General Electric announced that it had sold off its Lighting business. It is the end of era. After all, General Electric traces its history back to Thomas Edison and the light bulb he invented. That link has now been severed.
Perhaps more importantly, as Bloomberg noted, GE is no longer a consumer company at all. Many of us remember the company’s iconic “we bring good things to life” ad campaigns of the late 20th century. But GE Appliances now is owned by Germany’s Haier (OTCMKTS:HRELF). The lighting business was sold to privately held Savant Systems.
There’s more than symbolism to the deal, however. According to the Wall Street Journal, GE Lighting sold for just $250 million. Over half of that was assumed liabilities. And it came after GE spent years trying to exit the business, during which time it sold off its Current LED business and some overseas operations as well.
What the deal, and the process leading up to it, provides is another example that GE simply isn’t what it used to be. Older investors, in particular, may have a sense of General Electric that simply isn’t accurate anymore.
As I’ve written before, General Electric’s response to everything for years now has been to shrink. That process continues.
GE stock did rally 8% on the news, but that gain seems driven more by bottom-fishing on a green day for the market than the transaction itself. $250 million simply isn’t that material against a market capitalization still in the range of $60 billion. It’s obviously not enough to offset the concerns that are keeping GE stock well into the single digits.
Culp Speaks and GE Stock Falls
To be fair to GE, the decision to continually shrink the business isn’t necessarily the wrong move. Chief executive officer Larry Culp is widely respected after his enormously successful tenure at Danaher (NYSE:DHR), and with good reason.
But that’s precisely the point. If GE could grow, Culp would be trying to drive growth. But with the company beset by a still-troublesome balance sheet and significant pension obligations, the focus has to be on getting the company back on solid footing first.
The coronavirus has upended those plans. It has hammered GE’s Aviation business, which counts Boeing (NYSE:BA) as a key customer.
That in turn is testing investor patience. Culp said at a conference Thursday that GE would burn $4.5 billion in cash in the second quarter alone. GE stock fell 7% in response.
The issue isn’t just Aviation, but GE Capital. That unit finances aircraft, and as Culp put it “is seeing a good bit of pressure” from customer deferrals.
The weakness from aircraft isn’t ending in the second quarter. It’s likely not ending in 2020, or even 2021. An investor need only look at the share prices of American Airlines (NASDAQ:AAL) or Delta Air Lines (NYSE:DAL) to see what the market is pricing into those stocks.
There’s simply not that much slack in GE’s free cash flow profile right now to manage that kind of multi-year pressure. Even before the coronavirus hit, GE was guiding for industrial free cash flow (i.e., excluding GE Capital) of just $2 billion to $4 billion. If Aviation is down for the count, free cash flow stays flattish at best. And that leaves GE with little in the way of options.
A Tough Spot
The problem for GE stock at this point is that the company has to fix its balance sheet through free cash flow. It’s pulled all of the other levers.
Again, it’s sold businesses, including the $21 billion sale of GE Biopharma to Danaher that closed earlier this year. There’s really nothing left. GE Power is in the midst of a turnaround, Aviation is in trouble, Renewable Energy is small (and providing some growth), and Healthcare is the profit center.
Simply put, GE has to start making money. It’s not doing so. And, again, I don’t think that’s necessarily the fault of Culp. It’s largely the result of past decisions, among them the disastrous acquisition of Alstom that closed in 2015.
Whatever the cause, GE simply isn’t a leader anymore. It’s not a giant. It’s not an innovator. GE is not what it was. What the news from this week reinforces is that General Electric simply is a cash-burning company trying to turn itself around. And even in a best-case scenario, it likely has years left of work to do.
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 How This Week Highlights the Challenges Facing General Electric 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.
|
An investor need only look at the share prices of American Airlines (NASDAQ:AAL) or Delta Air Lines (NYSE:DAL) to see what the market is pricing into those stocks. 7 Red-Hot Vaccine Stocks Racing to Develop a Coronavirus Cure While I still hold out hope for General Electric, I can’t yet recommend that investors put their own hard-earned money behind the company’s turnaround plans. Chief executive officer Larry Culp is widely respected after his enormously successful tenure at Danaher (NYSE:DHR), and with good reason.
|
An investor need only look at the share prices of American Airlines (NASDAQ:AAL) or Delta Air Lines (NYSE:DAL) to see what the market is pricing into those stocks. InvestorPlace - Stock Market News, Stock Advice & Trading Tips I’ve been a skeptic toward General Electric (NYSE:GE) stock for some time now. Culp Speaks and GE Stock Falls To be fair to GE, the decision to continually shrink the business isn’t necessarily the wrong move.
|
An investor need only look at the share prices of American Airlines (NASDAQ:AAL) or Delta Air Lines (NYSE:DAL) to see what the market is pricing into those stocks. InvestorPlace - Stock Market News, Stock Advice & Trading Tips I’ve been a skeptic toward General Electric (NYSE:GE) stock for some time now. Culp Speaks and GE Stock Falls To be fair to GE, the decision to continually shrink the business isn’t necessarily the wrong move.
|
An investor need only look at the share prices of American Airlines (NASDAQ:AAL) or Delta Air Lines (NYSE:DAL) to see what the market is pricing into those stocks. InvestorPlace - Stock Market News, Stock Advice & Trading Tips I’ve been a skeptic toward General Electric (NYSE:GE) stock for some time now. GE is not what it was.
|
5813.0
|
2020-05-29 00:00:00 UTC
|
Southwest Airlines Stock Is a Survivor Worth Betting On
|
AAL
|
https://www.nasdaq.com/articles/southwest-airlines-stock-is-a-survivor-worth-betting-on-2020-05-29
|
nan
|
nan
|
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
American Airlines (NYSE:AAL) dropped 8% on May 28 after reporting earnings. Clearly investors have not yet come to terms with all of the woes that the industry is facing. This also put pressure on Southwest Airlines (NASDAQ:LUV), which fell 3% on Thursday and some more this morning. But it hasn’t all been bad news in the price action of airline stocks. In just nine days, LUV stock rallied as much as 56% off of the $22.50 bottom. This shows that the fan base is still alive. However, the easy work is done, but for the long-term, the opportunity still exists.
Source: Jeramey Lende / Shutterstock.com
The quarantine caused a panic on Wall Street, especially over the travel and hospitality industries. Even the most famous investor Warren Buffet of Berkshire Hathaway (NYSE:BRK.A, NYSE:BRK.B) closed out of his airline positions. This caused carnage among the group on two occasions.
First, when the headline broke out, they sold millions of shares, then again when they announced selling the remainder of the shares. Right or wrong, this mattered because he earned his “Oracle” moniker for good reasons.
For today’s discussion, those who are looking to own Southwest shares for the long-term shouldn’t worry about finding the perfect entry point. The Covid-19 dip created a good enough opportunity in general regardless of where the absolute bottom lies. Most traders, on the other hand, prefer getting into stocks right, so it makes sense to try and avoid making the obvious mistakes.
Ignore the LUV Stock Fundamental Metrics
The fundamentals of the whole industry have changed and perhaps forever. As with most airlines, the usual metrics look cheap, but in reality, they are temporarily useless to investors. Air traffic is still down 90% from its usual levels, so it would be ridiculous to use the price-to-earnings value of 9 to determine value on any airline stock. At the depth of the correction, the concern was company survival. Wall Street feared that major U.S. airlines were at risk of death. Even Boeing’s (NYSE:BA) CEO recently expressed this opinion in an interview with NBC.
7 Red-Hot Vaccine Stocks Racing to Develop a Coronavirus Cure
Luckily, we are going into an election season, so the White House was not going to let any high-profile American corporation fold. The industry got the bailout it needed to weather the storm. Now the priorities are to cut costs until money starts flowing through their income statements. They are starved for sales and the reopening process cannot happen fast enough.
Good News for LUV Stock?
Source: Charts by TradingView
Another bit of good news came this week when Boeing announced it’s restarting some of its 737 Max production. This is especially important for Southwest because its entire fleet consists of 737’s, albeit not all of them are Max models. The more lingering hindrances that end, the easier the recovery stage becomes. This is all to say that the worst of this crisis is over for LUV stock. Investors who held their shares throughout should not panic now. For peace of mind, equity owners can use the options markets to rent some insurance.
Technically, the stock has resistance going into $38 per share. This alone is not a reason to short it. In fact, small failures would make for smart entry points near $30. Then the bulls will have the opportunity to wage another rally to attack necklines with more force and target $43 per share. It will take patience and a lot of hard work from the buyers. Because every level that they tried to hold on the way down will act as resistance on the way back up.
Management Will Face a New Normal After this Crisis
They say that what doesn’t kill you, makes you stronger and this was as tough a test as they come. Eventually, LUV stock will emerge from this as a sector leader once more. Management we’ll have to continue tightening their purse strings until the financial situation improves. They have been in trouble so many times before that they know how to cut costs. Case in point is what American Airlines’ Parker said about his plans to trim more fat. But they also have to adjust to what ever new rules may come. They won’t be allowed to stuff the planes like they did into February. Also, there aren’t any perks left, so prices may have to rise. The first step is for people to start flying again and sooner rather than later.
Right or wrong, consensus is that they will soon find a vaccine. Investors have already priced those scenarios in. They will boost stock prices again until the actual headline hits. Meanwhile, there still is considerable risk of potential hiccups from loosening the quarantine. We are now at the edge of the virus incubation period. Meaning if infection were to reemerge they would have started showing signs by now.
A Twist on the Old Buy-and-Hold
Volatility is still high, so it’s prudent to use caution. One way to do this is to use options. For example, instead of buying shares, investors sell the LUV September $22.50 put and collect $1.5 per contract. They don’t even need a rally to profit. In fact, the stock can even fall another 35% from here before they lose any money. They break even at about $21 per share. This allows investors to be long a stock, while leaving room for error. But remember, it is important to never sell puts, except for the purpose of owning the stock, and to never take a bigger risk than what you’re willing to lose.
Nicolas Chahine is the managing director of SellSpreads.com. As of this writing, he did not hold a position in any of the aforementioned securities. Join his live chat room for free here.
The post Southwest Airlines Stock Is a Survivor Worth Betting On appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
InvestorPlace - Stock Market News, Stock Advice & Trading Tips American Airlines (NYSE:AAL) dropped 8% on May 28 after reporting earnings. For today’s discussion, those who are looking to own Southwest shares for the long-term shouldn’t worry about finding the perfect entry point. 7 Red-Hot Vaccine Stocks Racing to Develop a Coronavirus Cure Luckily, we are going into an election season, so the White House was not going to let any high-profile American corporation fold.
|
InvestorPlace - Stock Market News, Stock Advice & Trading Tips American Airlines (NYSE:AAL) dropped 8% on May 28 after reporting earnings. This also put pressure on Southwest Airlines (NASDAQ:LUV), which fell 3% on Thursday and some more this morning. Ignore the LUV Stock Fundamental Metrics The fundamentals of the whole industry have changed and perhaps forever.
|
InvestorPlace - Stock Market News, Stock Advice & Trading Tips American Airlines (NYSE:AAL) dropped 8% on May 28 after reporting earnings. But it hasn’t all been bad news in the price action of airline stocks. Good News for LUV Stock?
|
InvestorPlace - Stock Market News, Stock Advice & Trading Tips American Airlines (NYSE:AAL) dropped 8% on May 28 after reporting earnings. In just nine days, LUV stock rallied as much as 56% off of the $22.50 bottom. Good News for LUV Stock?
|
5814.0
|
2020-05-29 00:00:00 UTC
|
It Looks as If American Airlines Stock Is Set for a Big Return Next Year
|
AAL
|
https://www.nasdaq.com/articles/it-looks-as-if-american-airlines-stock-is-set-for-a-big-return-next-year-2020-05-29
|
nan
|
nan
|
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Since falling to an $8.25 low in April, American Airlines Group (NASDAQ:AAL) is holding the $10.00 level. Markets have a wait and see approach on AAL stock because its business recovery depends on passenger traffic rebounding.
Source: GagliardiPhotography / Shutterstock.com
Realistically, investors should expect a sustained uptrend in air flight demand in the coming weeks. Businesses are opening across the United States, and as companies hire back staff and at-home workers travel, expect business travel levels increasing.
In the last week (week of May 18 – 22, 2020), the Transportation Security Administration reported that total travel throughput increased by around 33%. This is also more than triple from the April lows.
Date Total Traveler Throughput Total Traveler Throughput
(1 Year Ago – Same Weekday)
5/22/2020 348,673 2,792,670
5/21/2020 318,449 2,673,635
5/20/2020 230,367 2,472,123
5/19/2020 190,477 2,312,727
5/18/2020 244,176 2,615,691
Data courtesy of TSA
The airline industry has a long way to go before it reaches last year’s traveler count in the millions.
Cargo Flights Positive for AAL Stock
Instead of waiting for passenger traffic levels to recover, American Airlines expanded its all-cargo international flights. It now operates 140 weekly all-cargo flights. By “medical supplies, personal protective equipment (PPE), perishables, and other time-sensitive freight around the world,” American Airlines is playing a role in fighting the spread of Covid-19, which could help keep AAL stock from falling too much further.
7 Red-Hot Vaccine Stocks Racing to Develop a Coronavirus Cure
At a time when cross-border trading and transport are sharply reduced, American is in a good position to keep such essential goods as medical equipment and food supplies sent to places that need it. And in a post-Covid-19 world, AAL may want to continue growing its cargo transport business. It has retired Boeing (NYSE:BA) 767s that are being turned into cargo planes.
Airlines for America endorsed plans to include temperature checks of passengers and airline and airport employees.
Although this does not eliminate the risk of spreading the coronavirus, it will at least discourage people who are ill from boarding a plane. Still, the temperature check is not fool-proof. For example, this study in Pittsburgh found that 5% to 20% of subjects who had been exposed to the coronavirus only noticed none to mild illness.
The Centers for Disease Control may mandate airports to check temperatures. Any prevention tool available will help minimize spreading the virus as the economy opens.
Adding staff to screen passengers, wipe down planes, offer masks, gloves, and hand sanitizer will add to the airline’s costs. AAL will likely pass the costs to its customers. And when more flights resume and run at lower capacity, it may increase plane ticket prices. This is a necessary step in operating the business at above break-even levels.
AAL Stock Fair Value
Investors may build a 5-year discounted cash flow model: EBITDA exit model. Assume revenue plunging in the next two fiscal years and then recovering thereafter:
(USD in millions) Input Projections
Fiscal Years Ending 19-Dec 20-Dec 21-Dec 22-Dec 23-Dec 24-Dec
Revenue 45,768 18,307 10,984 17,026 26,390 38,265
% Growth 2.80% -60.00% -40.00% 55.00% 55.00% 45.00%
EBITDA 6,207 -4,088 2,746 3,405 6,597 8,610
% of Revenue 13.60% -22.30% 25.00% 20.00% 25.00% 22.50%
Data Courtesy of Finbox
At a discount rate of 7%, American Airlines stock is worth around $13 a share. On Wall Street, 17 analysts rating the stock have an average price target of around $14.00. Investors need to balance their optimistic view of a sales rebound next year against the average sales growth in the sub-3% range:
Stock Industry S&P 500
Growth Score 56 69 75
Sales Growth
Sales Growth Next Year 53.70% 46.20% 11.30%
Sales 1‑Year Chg (%) -2.30% 8.10% 17.20%
Sales 3‑Year Avg (%) 2.70% 9.90% 12.20%
Data Courtesy of Stock Rover
As shown above, American’s growth trails that of the S&P 500. The good news is that its sales growth will outpace the industry next year.
Your Takeaway
Investors should watch daily TSA passenger data as well as the progress of the re-opening in the United States. The more businesses re-open, the greater the need to travel domestically, whether for business or tourism.
Along with social distancing practices on all flights, passengers will feel at ease when boarding a plane.
Disclosure: As of this writing, the author did not hold a position in any of the aforementioned securities.
The post It Looks as If American Airlines Stock Is Set for a Big Return Next Year appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
By “medical supplies, personal protective equipment (PPE), perishables, and other time-sensitive freight around the world,” American Airlines is playing a role in fighting the spread of Covid-19, which could help keep AAL stock from falling too much further. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Since falling to an $8.25 low in April, American Airlines Group (NASDAQ:AAL) is holding the $10.00 level. Markets have a wait and see approach on AAL stock because its business recovery depends on passenger traffic rebounding.
|
InvestorPlace - Stock Market News, Stock Advice & Trading Tips Since falling to an $8.25 low in April, American Airlines Group (NASDAQ:AAL) is holding the $10.00 level. Cargo Flights Positive for AAL Stock Instead of waiting for passenger traffic levels to recover, American Airlines expanded its all-cargo international flights. Markets have a wait and see approach on AAL stock because its business recovery depends on passenger traffic rebounding.
|
InvestorPlace - Stock Market News, Stock Advice & Trading Tips Since falling to an $8.25 low in April, American Airlines Group (NASDAQ:AAL) is holding the $10.00 level. Cargo Flights Positive for AAL Stock Instead of waiting for passenger traffic levels to recover, American Airlines expanded its all-cargo international flights. Markets have a wait and see approach on AAL stock because its business recovery depends on passenger traffic rebounding.
|
InvestorPlace - Stock Market News, Stock Advice & Trading Tips Since falling to an $8.25 low in April, American Airlines Group (NASDAQ:AAL) is holding the $10.00 level. And in a post-Covid-19 world, AAL may want to continue growing its cargo transport business. Markets have a wait and see approach on AAL stock because its business recovery depends on passenger traffic rebounding.
|
5815.0
|
2020-05-29 00:00:00 UTC
|
Delta Stock Could Lead an Airline Rally
|
AAL
|
https://www.nasdaq.com/articles/delta-stock-could-lead-an-airline-rally
|
nan
|
nan
|
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Delta Air Lines (NYSE:DAL) and other carriers aren’t out of the novel coronavirus woods yet, not by a long shot. But a jump of 18.24% last week by DAL stock can’t be glossed over either.
Source: NextNewMedia / Shutterstock.com
The recent strength of DAL stock epitomizes what’s happening in the equity market today. Stocks, including many of the biggest decliners during the March Covid-19 swoon, are rallying against a backdrop of rising unemployment and other bleak economic data.
Airlines, which remain contrarian bets, are late to the trash-to-treasure rally. That could be a sign that the group and DAL stock can climb further going forward.
But the sector’s outlook is still troubling. Sure, Memorial Day weekend proved that Americans are eager to get out of the house, but that doesn’t mean they’re eager to resume taking the type of trips that require air travel.
The airlines are not acting as though this is the case. The industry furloughed or laid off tens of thousands of workers. Planes are being grounded and smaller, less profitable routes are being scrapped.
7 Red-Hot Vaccine Stocks Racing to Develop a Coronavirus Cure
Weak economic data and the contention by analysts that demand for flights could take several years to return to 2019 levels aren’t new. But the sector’s recent rebound may indicate that investors think that the darkest clouds hanging over the airlines are gone.
Delta Faces Challenges But Offers Potential Rewards
It’s easy to be bearish son airlines when famed investors such as Warren Buffet abandon the group. Earlier this month, Buffett announced that he had sold all of his airline stocks. But negative investor sentiment isn’t the only challenge that Delta and its rivals currently face.
In the wake of the coronavirus, geopolitical tensions between the U.S. and China are again running high, with the White House accusing Beijing of blocking flights from American carriers, including Delta and United Airlines (NASAQ:UAL).
The Buffet banishment is likely baked into Delta’s shares at this point, but his skepticism doesn’t mean Delta should be abandoned. The airlines is taking some steps to deal with the rough operating environment. Beyond the aforementioned headcount and route reductions, Delta is selling some planes and leasing them back in an effort to generate cash.
That move, known as sale-leaseback, isn’t exactly innovative. It’s used in other industries when companies want to lighten their asset burdens while raising capital. It’s generally well-received by Wall Street.
As for well-known investors, not all of them are throwing in the towel on airlines. Bill Miller, the founder and CIO of Miller Value Partners, said earlier this month that betting against airlines is akin to betting against the success of a Covid-19 vaccine. Miller is putting money where his mouth is, as his firm holds stakes in Delta, United and American Airlines (NASDAQ:AAL).
The Bottom Line on DAL Stock
Crises are not ideal times to buy airline equities. History proves that, but history also shows the group is battle-hardened and often rebounds strongly when the worst news passes.
Over the past four decades, passenger “growth slowed during economic downturns, but then quickly recover{ed}. In 2018, the most recent year of data, the number of people who traveled at least once by plane hit an incredible 4.3 billion,” said U.S. Global Investors.
One caveat for investors with Delta or any other airlines for that matter: while many analysts are forecasting capacity levels returning to 2019 levels in 2023 or 2024, normalization could start as soon as next year. That means that investors who are evaluating Delta can only contemplate their options for so long. Also, it’s important to remember that the stock is already significantly undervalued in the eyes of some.
Todd Shriber has been an InvestorPlace contributor since 2014. As of this writing, he did not hold a position in any of the aforementioned securities.
The post Delta Stock Could Lead an Airline Rally 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.
|
Miller is putting money where his mouth is, as his firm holds stakes in Delta, United and American Airlines (NASDAQ:AAL). 7 Red-Hot Vaccine Stocks Racing to Develop a Coronavirus Cure Weak economic data and the contention by analysts that demand for flights could take several years to return to 2019 levels aren’t new. Delta Faces Challenges But Offers Potential Rewards It’s easy to be bearish son airlines when famed investors such as Warren Buffet abandon the group.
|
Miller is putting money where his mouth is, as his firm holds stakes in Delta, United and American Airlines (NASDAQ:AAL). InvestorPlace - Stock Market News, Stock Advice & Trading Tips Delta Air Lines (NYSE:DAL) and other carriers aren’t out of the novel coronavirus woods yet, not by a long shot. In the wake of the coronavirus, geopolitical tensions between the U.S. and China are again running high, with the White House accusing Beijing of blocking flights from American carriers, including Delta and United Airlines (NASAQ:UAL).
|
Miller is putting money where his mouth is, as his firm holds stakes in Delta, United and American Airlines (NASDAQ:AAL). InvestorPlace - Stock Market News, Stock Advice & Trading Tips Delta Air Lines (NYSE:DAL) and other carriers aren’t out of the novel coronavirus woods yet, not by a long shot. One caveat for investors with Delta or any other airlines for that matter: while many analysts are forecasting capacity levels returning to 2019 levels in 2023 or 2024, normalization could start as soon as next year.
|
Miller is putting money where his mouth is, as his firm holds stakes in Delta, United and American Airlines (NASDAQ:AAL). InvestorPlace - Stock Market News, Stock Advice & Trading Tips Delta Air Lines (NYSE:DAL) and other carriers aren’t out of the novel coronavirus woods yet, not by a long shot. 7 Red-Hot Vaccine Stocks Racing to Develop a Coronavirus Cure Weak economic data and the contention by analysts that demand for flights could take several years to return to 2019 levels aren’t new.
|
5816.0
|
2020-05-29 00:00:00 UTC
|
Chile state miner Codelco sees first-quarter profits in free fall
|
AAL
|
https://www.nasdaq.com/articles/chile-state-miner-codelco-sees-first-quarter-profits-in-free-fall-2020-05-29
|
nan
|
nan
|
By Fabian Cambero
SANTIAGO, May 29 (Reuters) - World top copper producer Codelco saw profits plunge 85% in the first quarter of 2020, the company said on Friday, ravaged by the falling price of the red metal amid the global coronavirus pandemic.
Chile's state-run Codelco, which turns over all its profits to government coffers, reported earnings of just $54 million during the January to March period. Sales of copper from its wholly-owned mines fell 32%, the company said.
"Profits were strongly affected by the economic effects of the sanitary crisis," the company said in its quarterly results statement. The copper price had fallen 10%, the miner said, and the price of several by-products it produces, including molybdenum, had also dropped sharply.
While markets have rebounded slightly in recent weeks, the dire results will likely prove a hurdle for top Chilean miner as it forges ahead with a $40 billion, 10-year upgrade of its aging mines. The company has already warned the economic fallout from the pandemic could force it to shelve some of those projects.
Codelco said it nonetheless boosted output by 6% in the first three months of 2020, hitting 361,000 tonnes at its wholly owned mines, and 387,000 tonnes overall.
The company told Reuters in May that its production and sales continued in line with its plans despite the strict measures it has implemented to stave off the spread of coronavirus at its operations.
The firm, however, has suspended construction on some projects, as well as some third-party contract work since the virus hit Chile in March.
Codelco´s direct production costs fell 1.5% to $1.327 per pound of copper, the miner said in its results statement on Friday, benefited by a stronger dollar and efficiencies in the output of byproducts.
(Reporting by Fabian Cambero, writing by Dave Sherwood; editing by Diane Craft)
((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.
|
By Fabian Cambero SANTIAGO, May 29 (Reuters) - World top copper producer Codelco saw profits plunge 85% in the first quarter of 2020, the company said on Friday, ravaged by the falling price of the red metal amid the global coronavirus pandemic. While markets have rebounded slightly in recent weeks, the dire results will likely prove a hurdle for top Chilean miner as it forges ahead with a $40 billion, 10-year upgrade of its aging mines. Codelco´s direct production costs fell 1.5% to $1.327 per pound of copper, the miner said in its results statement on Friday, benefited by a stronger dollar and efficiencies in the output of byproducts.
|
By Fabian Cambero SANTIAGO, May 29 (Reuters) - World top copper producer Codelco saw profits plunge 85% in the first quarter of 2020, the company said on Friday, ravaged by the falling price of the red metal amid the global coronavirus pandemic. Sales of copper from its wholly-owned mines fell 32%, the company said. Codelco´s direct production costs fell 1.5% to $1.327 per pound of copper, the miner said in its results statement on Friday, benefited by a stronger dollar and efficiencies in the output of byproducts.
|
By Fabian Cambero SANTIAGO, May 29 (Reuters) - World top copper producer Codelco saw profits plunge 85% in the first quarter of 2020, the company said on Friday, ravaged by the falling price of the red metal amid the global coronavirus pandemic. Codelco´s direct production costs fell 1.5% to $1.327 per pound of copper, the miner said in its results statement on Friday, benefited by a stronger dollar and efficiencies in the output of byproducts. (Reporting by Fabian Cambero, writing by Dave Sherwood; editing by Diane Craft) ((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.
|
By Fabian Cambero SANTIAGO, May 29 (Reuters) - World top copper producer Codelco saw profits plunge 85% in the first quarter of 2020, the company said on Friday, ravaged by the falling price of the red metal amid the global coronavirus pandemic. Sales of copper from its wholly-owned mines fell 32%, the company said. "Profits were strongly affected by the economic effects of the sanitary crisis," the company said in its quarterly results statement.
|
5817.0
|
2020-05-28 00:00:00 UTC
|
ANALYSIS-Latin America grabs world spotlight for airline bankruptcies
|
AAL
|
https://www.nasdaq.com/articles/analysis-latin-america-grabs-world-spotlight-for-airline-bankruptcies-2020-05-28
|
nan
|
nan
|
By Marcelo Rochabrun
SAO PAULO, May 28 (Reuters) - LATAM Airlines LTM.SN and Avianca Holdings AVT_p.CN survived the Great Depression, but just a few weeks of quarantines forced both companies into bankruptcy, marking Latin America as the world's top spot for airline financial ruin.
Their bankruptcy filings this month are now set to have a ripple effect on United Airlines UAL.O and Delta Air Lines DAL.N, whose untimely bets on the future of Latin American air travel could cost them billions.
Hopes for a taxpayer rescue in the region are fading fast and the bankruptcies show that even Latin America's two largest carriers are not immune to collapse, even as many airlines in the United States and Europe have received government aid.
Both LATAM and Avianca said they will continue flying as they restructure their debts in bankruptcy court.
LATAM alone accounts for 40% of passengers traveling within Latin America and its bankruptcy startled many investors while dealing a fresh blow to Airbus AIR.PA, which counts LATAM and Avianca as top clients.
"The air travel sector will not survive without government help," Jerome Cadier, LATAM's Brazil CEO, told Reuters.
He has been in bailout talks for two months and counting, while much of Latin America's air space remains subject to heavy travel restrictions, even as other parts of the world reopen.
Latin America was already the world's least profitable region for carriers before the crisis, hurt by volatile currencies, high taxes and a crippling recession in its biggest economy, Brazil.
Still, it has long been viewed as a region of great potential, enough so to tempt Delta and United into spending mightily to unseat American Airlines AAL.O as the top U.S. carrier for travel to Latin America.
'STRATEGIC COMPANY'
Delta bought 20% of LATAM in December while United struck a partnership with Avianca in 2018, but only after agreeing to finance the personal business interests of its Bolivian-born owner.
Three billion dollars later, both U.S. carriers still lack clearance to coordinate flights with their partners. At today's prices, Delta could buy LATAM almost four over with the money it spent on its small stake. United could buy Avianca over 20 times.
If you had invested $100 in Avianca at the beginning of this year, you would have $6.50 today. At its height LATAM boasted of being the world's second airline by market value.
Partly due to LATAM's size, analysts say, the company's shares did not fall as much in the leadup to the bankruptcy as those of its peers.
"These were speculators betting on a bailout," said Cristian Araya of Chilean brokerage Vantrust Capital.
Chile, where millions collectively own 15% of LATAM through retirement funds, this week declared it a "strategic company" but stopped short of rescuing it. Colombia has made no such noises about Avianca.
Combined, LATAM and Avianca still employ over 60,000 people, although most of them are either earning half their usual paycheck or none at all.
EMERGENCY MEETINGS
On Monday, LATAM's board sat for its 10th emergency meeting since April to formalize the bankruptcy decision.
The announcement stunned many, with shares of the airline falling more than 60% since Tuesday.
Earlier this week, Raymond James analysts still had an "outperform" rating on the stock, predicting LATAM's shares would double and calling its debt "manageable."
But LATAM's cash crunch and debt crisis were more severe than previously known, according to its bankruptcy filing.
The airline had missed debt payments, scaring banks and aircraft lessors. It had already spent its emergency credit line back in April. Shareholders had overruled LATAM's board to pay themselves dividends the airline could not afford.
Without a bankruptcy filing, LATAM would have had to pay some $200 million in expenses by next week, almost a third of the total cash held by the airline's subsidiaries participating in the bankruptcy.
At the same time, Delta abandoned a prior agreement to buy four Airbus A350 planes that LATAM did not want, paying a fee worth only a fraction of the aircraft's price. LATAM wants to immediately return 15 Airbus planes, Avianca another 8.
"In hindsight I think what we missed is that (LATAM) really needs to become a much smaller airline," Savanthi Syth, an analyst at Raymond James, said in an interview.
Cadier told Reuters he expects LATAM to shrink by up to 40%, which will include layoffs.
In a note downgrading LATAM after the bankruptcy, Raymond James said it had good news about Brazil rivals Gol Linhas Aereas Inteligentes GOLL4.SA, Azul SA AZUL.N and Panamanian Copa Holdings CPA.N.
"We do not expect similar (bankruptcy) filings," it said.
BREAKINGVIEWS-Latin America puts new spin on airline distress
(Reporting by Marcelo Rochabrun in Sao Paulo; Additional reporting by Tracy Rucinski and Fabian Cambero Editing by Christian Plumb and Matthew Lewis)
((marcelo.rochabrun@thomsonreuters.com; +55 11 5644 7768;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Still, it has long been viewed as a region of great potential, enough so to tempt Delta and United into spending mightily to unseat American Airlines AAL.O as the top U.S. carrier for travel to Latin America. Hopes for a taxpayer rescue in the region are fading fast and the bankruptcies show that even Latin America's two largest carriers are not immune to collapse, even as many airlines in the United States and Europe have received government aid. In a note downgrading LATAM after the bankruptcy, Raymond James said it had good news about Brazil rivals Gol Linhas Aereas Inteligentes GOLL4.SA, Azul SA AZUL.N and Panamanian Copa Holdings CPA.N.
|
Still, it has long been viewed as a region of great potential, enough so to tempt Delta and United into spending mightily to unseat American Airlines AAL.O as the top U.S. carrier for travel to Latin America. By Marcelo Rochabrun SAO PAULO, May 28 (Reuters) - LATAM Airlines LTM.SN and Avianca Holdings AVT_p.CN survived the Great Depression, but just a few weeks of quarantines forced both companies into bankruptcy, marking Latin America as the world's top spot for airline financial ruin. "The air travel sector will not survive without government help," Jerome Cadier, LATAM's Brazil CEO, told Reuters.
|
Still, it has long been viewed as a region of great potential, enough so to tempt Delta and United into spending mightily to unseat American Airlines AAL.O as the top U.S. carrier for travel to Latin America. By Marcelo Rochabrun SAO PAULO, May 28 (Reuters) - LATAM Airlines LTM.SN and Avianca Holdings AVT_p.CN survived the Great Depression, but just a few weeks of quarantines forced both companies into bankruptcy, marking Latin America as the world's top spot for airline financial ruin. LATAM alone accounts for 40% of passengers traveling within Latin America and its bankruptcy startled many investors while dealing a fresh blow to Airbus AIR.PA, which counts LATAM and Avianca as top clients.
|
Still, it has long been viewed as a region of great potential, enough so to tempt Delta and United into spending mightily to unseat American Airlines AAL.O as the top U.S. carrier for travel to Latin America. By Marcelo Rochabrun SAO PAULO, May 28 (Reuters) - LATAM Airlines LTM.SN and Avianca Holdings AVT_p.CN survived the Great Depression, but just a few weeks of quarantines forced both companies into bankruptcy, marking Latin America as the world's top spot for airline financial ruin. At today's prices, Delta could buy LATAM almost four over with the money it spent on its small stake.
|
5818.0
|
2020-05-28 00:00:00 UTC
|
BUZZ-U.S. STOCKS ON THE MOVE-ARCA Biopharma, Aerpio Pharma, Triumph Group
|
AAL
|
https://www.nasdaq.com/articles/buzz-u.s.-stocks-on-the-move-arca-biopharma-aerpio-pharma-triumph-group-2020-05-28
|
nan
|
nan
|
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 major indexes rose on Thursday, boosted by gains in healthcare and technology stocks, as investors bet on a swift recovery from a coronavirus-driven economic slump..N
At 13:07 ET, the Dow Jones Industrial Average .DJI was up 0.68% at 25,721.94. The S&P 500 .SPX was up 0.95% at 3,065.09 and the Nasdaq Composite .IXIC was up 1.05% at 9,511.383. The top three S&P 500 .PG.INX percentage gainers: ** Dollar Tree Inc , up 11% ** Alexion Pharmaceuticals Inc , up 8.4% ** NortonLifeLock Inc , up 6.7% The top three S&P 500 .PL.INX percentage losers: ** HP Inc , down 11.3% ** Kohl's Corp , down 5.7% ** American Airlines Group Inc , down 5.3% The top three NYSE .PG.N percentage gainers: ** Triumph Group Inc , up 36.4% ** Nine Energy Service Inc , up 25% ** FTS International Inc , up 21.7% The top three NYSE .PL.N percentage losers: ** Townsquare Media Inc , down 12.6% ** REX American Resources Corp , down 12.2% ** HP Inc , down 11.3% The top three Nasdaq .PG.O percentage gainers: ** ARCA Biopharma Inc , up 174.8% ** Esprt Entrtnm Wt , up 55.6 % ** Genius Brnd Intl , up 49.2 % The top three Nasdaq .PL.O percentage losers: ** Iovance Bthrptcs , down 15.2 % ** China Jo Jo Drug , down 14.3 % ** Luckin Coffe Inc , down 14.2 % ** Sabre Corp SABR.O: down 2.7%
BUZZ-Dips as travel bookings remain "severely depressed" ** Cerecor Inc CERC.O: up 11.7%
BUZZ-Gains on U.S. FDA nod for COVID-19 treatment study ** Yeti Holdings Inc YETI.N: down 3.2%
BUZZ-Second sale by holders this month dents shares ** Golar LNG Ltd GLNG.O: up 2.5%
BUZZ-Rises on better-than-expected interim Q1 results ** Blue Hat Interactive Entertainment Technology BHAT.O: up 59.7%
BUZZ-Jumps on partnership to expand augmented reality classes in China ** ARCA Biopharma Inc ABIO.O: up 174.8%
BUZZ-Surges on plans to test treatment for COVID-19 blood disorder ** Arcus Biosciences Inc RCUS.N: up 2.1%
BUZZ-Rises as co launches stock offering after Gilead investment ** Momo Inc MOMO.O: down 5.1%
BUZZ-Falls as Q1 revenue, paying users decline ** REX American Resources Corp REX.N: down 11.8%
BUZZ-Slips on posting Q1 loss vs yr-ago profit on lower ethanol output ** Clovis Oncology Inc CLVS.O: up 4.9%
BUZZ-Rises after recommendation for expanded use of cancer drug ** Essent Group Ltd ESNT.N: down 6.3%
BUZZ-Slides after mortgage insurer launches S&P MidCap inclusion share offering ** resTORbio Inc TORC.O: up 14.1%
BUZZ-Up on starting study of antiviral drug for COVID-19 ** Atossa Therapeutics Inc ATOS.O: up 3.7%
BUZZ-Gains on plans to test second drug for COVID-19 ** NetApp Inc NTAP.O: down 2.7%
BUZZ-Drops on dismal FY 21 forecast ** Moderna Inc MRNA.O: up 9.5%
BUZZ-Snaps losing streak after deal for its experimental COVID-19 vaccineUSN ** Bill.com Holdings Inc BILL.N: up 8.1% BUZZ-Piper Sandler sees robust growth over next decade, upgrades ** Aerpio Pharmaceutical Inc ARPO.O: up 59.8% BUZZ-Surges after eye drug selected for COVID-19 study ** Consolidated Edison Inc ED.N: up 2.3% BUZZ-JPM flags risk from anti-gas infrastructure efforts ** Hertz Global Holdings Inc HTZ.N: down 13.4% BUZZ-Slumps after Icahn unloads entire stake at "significant" loss ** Nio Inc NIO.N: down 7.0% BUZZ-Falls after missing quarterly revenue estimates ** Boeing Co BA.N: up 3.2% ** Spirit AeroSystems Holdings Inc SPR.N: down 1.3% ** General Electric Co GE.N: down 3.2% ** Raytheon Technologies Corp RTX.N: up 2.0% BUZZ-Boeing suppliers: Rise after planemaker resumes 737 MAX production ** NextEra Energy Partners LP NEP.N: up 1.7% BUZZ-Stands to benefit from equity funding efforts - JPM ** BioCryst Pharmaceuticals Inc BCRX.O: down 6.5% BUZZ-Drops after pricing $100 mln stock offering ** Triumph Group Inc TGI.N: up 36.6% BUZZ-Set for third day of gains on profit beat ** Arena Pharmaceuticals Inc ARNA.O: down 4.6% BUZZ-Falls after co prices upsized $275 mln stock deal ** Dollar Tree Inc DLTR.O: up 11.0% BUZZ-Surges as panic buying drives Q1 sales ** Endologix Inc ELGX.O: down 3.7% BUZZ-Set to open at record low on going concern doubts ** UP Fintech Holdings Ltd TIGR.O: down 5.7% BUZZ-Jumps on returning to profit in Q1 ** Abercrombie & Fitch Co ANF.N: down 8.0% BUZZ-Slips on wider-than-expected loss
The 11 major S&P 500 sectors:
Communication Services
.SPLRCL
up 0.45%
Consumer Discretionary
.SPLRCD
up 0.37%
Consumer Staples
.SPLRCS
up 1.23%
Energy
.SPNY
down 0.78%
Financial
.SPSY
down 0.37%
Health
.SPXHC
up 2.12%
Industrial
.SPLRCI
up 0.37%
Information Technology
.SPLRCT
up 1.39%
Materials
.SPLRCM
up 1.26%
Real Estate
.SPLRCR
up 0.42%
Utilities
.SPLRCU
up 2.92%
(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.
|
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 major indexes rose on Thursday, boosted by gains in healthcare and technology stocks, as investors bet on a swift recovery from a coronavirus-driven economic slump..N At 13:07 ET, the Dow Jones Industrial Average .DJI was up 0.68% at 25,721.94. The top three S&P 500 .PG.INX percentage gainers: ** Dollar Tree Inc , up 11% ** Alexion Pharmaceuticals Inc , up 8.4% ** NortonLifeLock Inc , up 6.7% The top three S&P 500 .PL.INX percentage losers: ** HP Inc , down 11.3% ** Kohl's Corp , down 5.7% ** American Airlines Group Inc , down 5.3% The top three NYSE .PG.N percentage gainers: ** Triumph Group Inc , up 36.4% ** Nine Energy Service Inc , up 25% ** FTS International Inc , up 21.7% The top three NYSE .PL.N percentage losers: ** Townsquare Media Inc , down 12.6% ** REX American Resources Corp , down 12.2% ** HP Inc , down 11.3% The top three Nasdaq .PG.O percentage gainers: ** ARCA Biopharma Inc , up 174.8% ** Esprt Entrtnm Wt , up 55.6 % ** Genius Brnd Intl , up 49.2 % The top three Nasdaq .PL.O percentage losers: ** Iovance Bthrptcs , down 15.2 % ** China Jo Jo Drug , down 14.3 % ** Luckin Coffe Inc , down 14.2 % ** Sabre Corp SABR.O: down 2.7% BUZZ-Dips as travel bookings remain "severely depressed" ** Cerecor Inc CERC.O: up 11.7% BUZZ-Gains on U.S. FDA nod for COVID-19 treatment study ** Yeti Holdings Inc YETI.N: down 3.2% BUZZ-Second sale by holders this month dents shares ** Golar LNG Ltd GLNG.O: up 2.5% BUZZ-Rises on better-than-expected interim Q1 results ** Blue Hat Interactive Entertainment Technology BHAT.O: up 59.7% BUZZ-Jumps on partnership to expand augmented reality classes in China ** ARCA Biopharma Inc ABIO.O: up 174.8% BUZZ-Surges on plans to test treatment for COVID-19 blood disorder ** Arcus Biosciences Inc RCUS.N: up 2.1% BUZZ-Rises as co launches stock offering after Gilead investment ** Momo Inc MOMO.O: down 5.1% BUZZ-Falls as Q1 revenue, paying users decline ** REX American Resources Corp REX.N: down 11.8% BUZZ-Slips on posting Q1 loss vs yr-ago profit on lower ethanol output ** Clovis Oncology Inc CLVS.O: up 4.9% BUZZ-Rises after recommendation for expanded use of cancer drug ** Essent Group Ltd ESNT.N: down 6.3% BUZZ-Slides after mortgage insurer launches S&P MidCap inclusion share offering ** resTORbio Inc TORC.O: up 14.1% BUZZ-Up on starting study of antiviral drug for COVID-19 ** Atossa Therapeutics Inc ATOS.O: up 3.7% BUZZ-Gains on plans to test second drug for COVID-19 ** NetApp Inc NTAP.O: down 2.7% BUZZ-Drops on dismal FY 21 forecast ** Moderna Inc MRNA.O: up 9.5% BUZZ-Snaps losing streak after deal for its experimental COVID-19 vaccineUSN ** Bill.com Holdings Inc BILL.N: up 8.1% BUZZ-Piper Sandler sees robust growth over next decade, upgrades ** Aerpio Pharmaceutical Inc ARPO.O: up 59.8% BUZZ-Surges after eye drug selected for COVID-19 study ** Consolidated Edison Inc ED.N: up 2.3% BUZZ-JPM flags risk from anti-gas infrastructure efforts ** Hertz Global Holdings Inc HTZ.N: down 13.4% BUZZ-Slumps after Icahn unloads entire stake at "significant" loss ** Nio Inc NIO.N: down 7.0% BUZZ-Falls after missing quarterly revenue estimates ** Boeing Co BA.N: up 3.2% ** Spirit AeroSystems Holdings Inc SPR.N: down 1.3% ** General Electric Co GE.N: down 3.2% ** Raytheon Technologies Corp RTX.N: up 2.0% BUZZ-Boeing suppliers: Rise after planemaker resumes 737 MAX production ** NextEra Energy Partners LP NEP.N: up 1.7% BUZZ-Stands to benefit from equity funding efforts - JPM ** BioCryst Pharmaceuticals Inc BCRX.O: down 6.5% BUZZ-Drops after pricing $100 mln stock offering ** Triumph Group Inc TGI.N: up 36.6% BUZZ-Set for third day of gains on profit beat ** Arena Pharmaceuticals Inc ARNA.O: down 4.6% BUZZ-Falls after co prices upsized $275 mln stock deal ** Dollar Tree Inc DLTR.O: up 11.0% BUZZ-Surges as panic buying drives Q1 sales ** Endologix Inc ELGX.O: down 3.7% BUZZ-Set to open at record low on going concern doubts ** UP Fintech Holdings Ltd TIGR.O: down 5.7% BUZZ-Jumps on returning to profit in Q1 ** Abercrombie & Fitch Co ANF.N: down 8.0% BUZZ-Slips on wider-than-expected loss The 11 major S&P 500 sectors: Communication Services up 2.92% (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.
|
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 major indexes rose on Thursday, boosted by gains in healthcare and technology stocks, as investors bet on a swift recovery from a coronavirus-driven economic slump..N At 13:07 ET, the Dow Jones Industrial Average .DJI was up 0.68% at 25,721.94. The top three S&P 500 .PG.INX percentage gainers: ** Dollar Tree Inc , up 11% ** Alexion Pharmaceuticals Inc , up 8.4% ** NortonLifeLock Inc , up 6.7% The top three S&P 500 .PL.INX percentage losers: ** HP Inc , down 11.3% ** Kohl's Corp , down 5.7% ** American Airlines Group Inc , down 5.3% The top three NYSE .PG.N percentage gainers: ** Triumph Group Inc , up 36.4% ** Nine Energy Service Inc , up 25% ** FTS International Inc , up 21.7% The top three NYSE .PL.N percentage losers: ** Townsquare Media Inc , down 12.6% ** REX American Resources Corp , down 12.2% ** HP Inc , down 11.3% The top three Nasdaq .PG.O percentage gainers: ** ARCA Biopharma Inc , up 174.8% ** Esprt Entrtnm Wt , up 55.6 % ** Genius Brnd Intl , up 49.2 % The top three Nasdaq .PL.O percentage losers: ** Iovance Bthrptcs , down 15.2 % ** China Jo Jo Drug , down 14.3 % ** Luckin Coffe Inc , down 14.2 % ** Sabre Corp SABR.O: down 2.7% BUZZ-Dips as travel bookings remain "severely depressed" ** Cerecor Inc CERC.O: up 11.7% BUZZ-Gains on U.S. FDA nod for COVID-19 treatment study ** Yeti Holdings Inc YETI.N: down 3.2% BUZZ-Second sale by holders this month dents shares ** Golar LNG Ltd GLNG.O: up 2.5% BUZZ-Rises on better-than-expected interim Q1 results ** Blue Hat Interactive Entertainment Technology BHAT.O: up 59.7% BUZZ-Jumps on partnership to expand augmented reality classes in China ** ARCA Biopharma Inc ABIO.O: up 174.8% BUZZ-Surges on plans to test treatment for COVID-19 blood disorder ** Arcus Biosciences Inc RCUS.N: up 2.1% BUZZ-Rises as co launches stock offering after Gilead investment ** Momo Inc MOMO.O: down 5.1% BUZZ-Falls as Q1 revenue, paying users decline ** REX American Resources Corp REX.N: down 11.8% BUZZ-Slips on posting Q1 loss vs yr-ago profit on lower ethanol output ** Clovis Oncology Inc CLVS.O: up 4.9% BUZZ-Rises after recommendation for expanded use of cancer drug ** Essent Group Ltd ESNT.N: down 6.3% BUZZ-Slides after mortgage insurer launches S&P MidCap inclusion share offering ** resTORbio Inc TORC.O: up 14.1% BUZZ-Up on starting study of antiviral drug for COVID-19 ** Atossa Therapeutics Inc ATOS.O: up 3.7% BUZZ-Gains on plans to test second drug for COVID-19 ** NetApp Inc NTAP.O: down 2.7% BUZZ-Drops on dismal FY 21 forecast ** Moderna Inc MRNA.O: up 9.5% BUZZ-Snaps losing streak after deal for its experimental COVID-19 vaccineUSN ** Bill.com Holdings Inc BILL.N: up 8.1% BUZZ-Piper Sandler sees robust growth over next decade, upgrades ** Aerpio Pharmaceutical Inc ARPO.O: up 59.8% BUZZ-Surges after eye drug selected for COVID-19 study ** Consolidated Edison Inc ED.N: up 2.3% BUZZ-JPM flags risk from anti-gas infrastructure efforts ** Hertz Global Holdings Inc HTZ.N: down 13.4% BUZZ-Slumps after Icahn unloads entire stake at "significant" loss ** Nio Inc NIO.N: down 7.0% BUZZ-Falls after missing quarterly revenue estimates ** Boeing Co BA.N: up 3.2% ** Spirit AeroSystems Holdings Inc SPR.N: down 1.3% ** General Electric Co GE.N: down 3.2% ** Raytheon Technologies Corp RTX.N: up 2.0% BUZZ-Boeing suppliers: Rise after planemaker resumes 737 MAX production ** NextEra Energy Partners LP NEP.N: up 1.7% BUZZ-Stands to benefit from equity funding efforts - JPM ** BioCryst Pharmaceuticals Inc BCRX.O: down 6.5% BUZZ-Drops after pricing $100 mln stock offering ** Triumph Group Inc TGI.N: up 36.6% BUZZ-Set for third day of gains on profit beat ** Arena Pharmaceuticals Inc ARNA.O: down 4.6% BUZZ-Falls after co prices upsized $275 mln stock deal ** Dollar Tree Inc DLTR.O: up 11.0% BUZZ-Surges as panic buying drives Q1 sales ** Endologix Inc ELGX.O: down 3.7% BUZZ-Set to open at record low on going concern doubts ** UP Fintech Holdings Ltd TIGR.O: down 5.7% BUZZ-Jumps on returning to profit in Q1 ** Abercrombie & Fitch Co ANF.N: down 8.0% BUZZ-Slips on wider-than-expected loss The 11 major S&P 500 sectors: Communication Services up 2.92% (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.
|
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 major indexes rose on Thursday, boosted by gains in healthcare and technology stocks, as investors bet on a swift recovery from a coronavirus-driven economic slump..N At 13:07 ET, the Dow Jones Industrial Average .DJI was up 0.68% at 25,721.94. The top three S&P 500 .PG.INX percentage gainers: ** Dollar Tree Inc , up 11% ** Alexion Pharmaceuticals Inc , up 8.4% ** NortonLifeLock Inc , up 6.7% The top three S&P 500 .PL.INX percentage losers: ** HP Inc , down 11.3% ** Kohl's Corp , down 5.7% ** American Airlines Group Inc , down 5.3% The top three NYSE .PG.N percentage gainers: ** Triumph Group Inc , up 36.4% ** Nine Energy Service Inc , up 25% ** FTS International Inc , up 21.7% The top three NYSE .PL.N percentage losers: ** Townsquare Media Inc , down 12.6% ** REX American Resources Corp , down 12.2% ** HP Inc , down 11.3% The top three Nasdaq .PG.O percentage gainers: ** ARCA Biopharma Inc , up 174.8% ** Esprt Entrtnm Wt , up 55.6 % ** Genius Brnd Intl , up 49.2 % The top three Nasdaq .PL.O percentage losers: ** Iovance Bthrptcs , down 15.2 % ** China Jo Jo Drug , down 14.3 % ** Luckin Coffe Inc , down 14.2 % ** Sabre Corp SABR.O: down 2.7% BUZZ-Dips as travel bookings remain "severely depressed" ** Cerecor Inc CERC.O: up 11.7% BUZZ-Gains on U.S. FDA nod for COVID-19 treatment study ** Yeti Holdings Inc YETI.N: down 3.2% BUZZ-Second sale by holders this month dents shares ** Golar LNG Ltd GLNG.O: up 2.5% BUZZ-Rises on better-than-expected interim Q1 results ** Blue Hat Interactive Entertainment Technology BHAT.O: up 59.7% BUZZ-Jumps on partnership to expand augmented reality classes in China ** ARCA Biopharma Inc ABIO.O: up 174.8% BUZZ-Surges on plans to test treatment for COVID-19 blood disorder ** Arcus Biosciences Inc RCUS.N: up 2.1% BUZZ-Rises as co launches stock offering after Gilead investment ** Momo Inc MOMO.O: down 5.1% BUZZ-Falls as Q1 revenue, paying users decline ** REX American Resources Corp REX.N: down 11.8% BUZZ-Slips on posting Q1 loss vs yr-ago profit on lower ethanol output ** Clovis Oncology Inc CLVS.O: up 4.9% BUZZ-Rises after recommendation for expanded use of cancer drug ** Essent Group Ltd ESNT.N: down 6.3% BUZZ-Slides after mortgage insurer launches S&P MidCap inclusion share offering ** resTORbio Inc TORC.O: up 14.1% BUZZ-Up on starting study of antiviral drug for COVID-19 ** Atossa Therapeutics Inc ATOS.O: up 3.7% BUZZ-Gains on plans to test second drug for COVID-19 ** NetApp Inc NTAP.O: down 2.7% BUZZ-Drops on dismal FY 21 forecast ** Moderna Inc MRNA.O: up 9.5% BUZZ-Snaps losing streak after deal for its experimental COVID-19 vaccineUSN ** Bill.com Holdings Inc BILL.N: up 8.1% BUZZ-Piper Sandler sees robust growth over next decade, upgrades ** Aerpio Pharmaceutical Inc ARPO.O: up 59.8% BUZZ-Surges after eye drug selected for COVID-19 study ** Consolidated Edison Inc ED.N: up 2.3% BUZZ-JPM flags risk from anti-gas infrastructure efforts ** Hertz Global Holdings Inc HTZ.N: down 13.4% BUZZ-Slumps after Icahn unloads entire stake at "significant" loss ** Nio Inc NIO.N: down 7.0% BUZZ-Falls after missing quarterly revenue estimates ** Boeing Co BA.N: up 3.2% ** Spirit AeroSystems Holdings Inc SPR.N: down 1.3% ** General Electric Co GE.N: down 3.2% ** Raytheon Technologies Corp RTX.N: up 2.0% BUZZ-Boeing suppliers: Rise after planemaker resumes 737 MAX production ** NextEra Energy Partners LP NEP.N: up 1.7% BUZZ-Stands to benefit from equity funding efforts - JPM ** BioCryst Pharmaceuticals Inc BCRX.O: down 6.5% BUZZ-Drops after pricing $100 mln stock offering ** Triumph Group Inc TGI.N: up 36.6% BUZZ-Set for third day of gains on profit beat ** Arena Pharmaceuticals Inc ARNA.O: down 4.6% BUZZ-Falls after co prices upsized $275 mln stock deal ** Dollar Tree Inc DLTR.O: up 11.0% BUZZ-Surges as panic buying drives Q1 sales ** Endologix Inc ELGX.O: down 3.7% BUZZ-Set to open at record low on going concern doubts ** UP Fintech Holdings Ltd TIGR.O: down 5.7% BUZZ-Jumps on returning to profit in Q1 ** Abercrombie & Fitch Co ANF.N: down 8.0% BUZZ-Slips on wider-than-expected loss The 11 major S&P 500 sectors: Communication Services up 0.45% Consumer Discretionary
|
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 major indexes rose on Thursday, boosted by gains in healthcare and technology stocks, as investors bet on a swift recovery from a coronavirus-driven economic slump..N At 13:07 ET, the Dow Jones Industrial Average .DJI was up 0.68% at 25,721.94. The S&P 500 .SPX was up 0.95% at 3,065.09 and the Nasdaq Composite .IXIC was up 1.05% at 9,511.383. The top three S&P 500 .PG.INX percentage gainers: ** Dollar Tree Inc , up 11% ** Alexion Pharmaceuticals Inc , up 8.4% ** NortonLifeLock Inc , up 6.7% The top three S&P 500 .PL.INX percentage losers: ** HP Inc , down 11.3% ** Kohl's Corp , down 5.7% ** American Airlines Group Inc , down 5.3% The top three NYSE .PG.N percentage gainers: ** Triumph Group Inc , up 36.4% ** Nine Energy Service Inc , up 25% ** FTS International Inc , up 21.7% The top three NYSE .PL.N percentage losers: ** Townsquare Media Inc , down 12.6% ** REX American Resources Corp , down 12.2% ** HP Inc , down 11.3% The top three Nasdaq .PG.O percentage gainers: ** ARCA Biopharma Inc , up 174.8% ** Esprt Entrtnm Wt , up 55.6 % ** Genius Brnd Intl , up 49.2 % The top three Nasdaq .PL.O percentage losers: ** Iovance Bthrptcs , down 15.2 % ** China Jo Jo Drug , down 14.3 % ** Luckin Coffe Inc , down 14.2 % ** Sabre Corp SABR.O: down 2.7% BUZZ-Dips as travel bookings remain "severely depressed" ** Cerecor Inc CERC.O: up 11.7% BUZZ-Gains on U.S. FDA nod for COVID-19 treatment study ** Yeti Holdings Inc YETI.N: down 3.2% BUZZ-Second sale by holders this month dents shares ** Golar LNG Ltd GLNG.O: up 2.5% BUZZ-Rises on better-than-expected interim Q1 results ** Blue Hat Interactive Entertainment Technology BHAT.O: up 59.7% BUZZ-Jumps on partnership to expand augmented reality classes in China ** ARCA Biopharma Inc ABIO.O: up 174.8% BUZZ-Surges on plans to test treatment for COVID-19 blood disorder ** Arcus Biosciences Inc RCUS.N: up 2.1% BUZZ-Rises as co launches stock offering after Gilead investment ** Momo Inc MOMO.O: down 5.1% BUZZ-Falls as Q1 revenue, paying users decline ** REX American Resources Corp REX.N: down 11.8% BUZZ-Slips on posting Q1 loss vs yr-ago profit on lower ethanol output ** Clovis Oncology Inc CLVS.O: up 4.9% BUZZ-Rises after recommendation for expanded use of cancer drug ** Essent Group Ltd ESNT.N: down 6.3% BUZZ-Slides after mortgage insurer launches S&P MidCap inclusion share offering ** resTORbio Inc TORC.O: up 14.1% BUZZ-Up on starting study of antiviral drug for COVID-19 ** Atossa Therapeutics Inc ATOS.O: up 3.7% BUZZ-Gains on plans to test second drug for COVID-19 ** NetApp Inc NTAP.O: down 2.7% BUZZ-Drops on dismal FY 21 forecast ** Moderna Inc MRNA.O: up 9.5% BUZZ-Snaps losing streak after deal for its experimental COVID-19 vaccineUSN ** Bill.com Holdings Inc BILL.N: up 8.1% BUZZ-Piper Sandler sees robust growth over next decade, upgrades ** Aerpio Pharmaceutical Inc ARPO.O: up 59.8% BUZZ-Surges after eye drug selected for COVID-19 study ** Consolidated Edison Inc ED.N: up 2.3% BUZZ-JPM flags risk from anti-gas infrastructure efforts ** Hertz Global Holdings Inc HTZ.N: down 13.4% BUZZ-Slumps after Icahn unloads entire stake at "significant" loss ** Nio Inc NIO.N: down 7.0% BUZZ-Falls after missing quarterly revenue estimates ** Boeing Co BA.N: up 3.2% ** Spirit AeroSystems Holdings Inc SPR.N: down 1.3% ** General Electric Co GE.N: down 3.2% ** Raytheon Technologies Corp RTX.N: up 2.0% BUZZ-Boeing suppliers: Rise after planemaker resumes 737 MAX production ** NextEra Energy Partners LP NEP.N: up 1.7% BUZZ-Stands to benefit from equity funding efforts - JPM ** BioCryst Pharmaceuticals Inc BCRX.O: down 6.5% BUZZ-Drops after pricing $100 mln stock offering ** Triumph Group Inc TGI.N: up 36.6% BUZZ-Set for third day of gains on profit beat ** Arena Pharmaceuticals Inc ARNA.O: down 4.6% BUZZ-Falls after co prices upsized $275 mln stock deal ** Dollar Tree Inc DLTR.O: up 11.0% BUZZ-Surges as panic buying drives Q1 sales ** Endologix Inc ELGX.O: down 3.7% BUZZ-Set to open at record low on going concern doubts ** UP Fintech Holdings Ltd TIGR.O: down 5.7% BUZZ-Jumps on returning to profit in Q1 ** Abercrombie & Fitch Co ANF.N: down 8.0% BUZZ-Slips on wider-than-expected loss The 11 major S&P 500 sectors: Communication Services
|
5819.0
|
2020-05-28 00:00:00 UTC
|
Thursday Sector Laggards: Airlines, Shipping Stocks
|
AAL
|
https://www.nasdaq.com/articles/thursday-sector-laggards%3A-airlines-shipping-stocks-2020-05-28
|
nan
|
nan
|
In trading on Thursday, airlines shares were relative laggards, down on the day by about 1.8%. Helping drag down the group were shares of American Airlines Group, off about 5.4% and shares of Hawaiian Holdings down about 4.9% on the day.
Also lagging the market Thursday are shipping shares, down on the day by about 1.6% as a group, led down by Dorian LPG, trading lower by about 8.7% and Golar LNG Partners, trading lower by about 6.5%.
VIDEO: Thursday Sector Laggards: Airlines, Shipping Stocks
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
In trading on Thursday, airlines shares were relative laggards, down on the day by about 1.8%. Also lagging the market Thursday are shipping shares, down on the day by about 1.6% as a group, led down by Dorian LPG, trading lower by about 8.7% and Golar LNG Partners, trading lower by about 6.5%. VIDEO: Thursday Sector Laggards: Airlines, Shipping Stocks The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
In trading on Thursday, airlines shares were relative laggards, down on the day by about 1.8%. Helping drag down the group were shares of American Airlines Group, off about 5.4% and shares of Hawaiian Holdings down about 4.9% on the day. VIDEO: Thursday Sector Laggards: Airlines, Shipping Stocks The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Helping drag down the group were shares of American Airlines Group, off about 5.4% and shares of Hawaiian Holdings down about 4.9% on the day. Also lagging the market Thursday are shipping shares, down on the day by about 1.6% as a group, led down by Dorian LPG, trading lower by about 8.7% and Golar LNG Partners, trading lower by about 6.5%. VIDEO: Thursday Sector Laggards: Airlines, Shipping Stocks The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
In trading on Thursday, airlines shares were relative laggards, down on the day by about 1.8%. Helping drag down the group were shares of American Airlines Group, off about 5.4% and shares of Hawaiian Holdings down about 4.9% on the day. Also lagging the market Thursday are shipping shares, down on the day by about 1.6% as a group, led down by Dorian LPG, trading lower by about 8.7% and Golar LNG Partners, trading lower by about 6.5%.
|
5820.0
|
2020-05-28 00:00:00 UTC
|
American Airlines Will Be Cutting Thousands of Jobs, Report Says
|
AAL
|
https://www.nasdaq.com/articles/american-airlines-will-be-cutting-thousands-of-jobs-report-says-2020-05-28
|
nan
|
nan
|
After reporting a $2.2 billion loss in its first quarter due to the impacts of the COVID-19 pandemic, American Airlines Group (NASDAQ: AAL) announced that it would cut $12 billion in expenses as it was "rightsizing the airline and its cost structure." To that end, the company is cutting 30% of its management and administrative staff positions, according to a Wall Street Journal report.
The airline is working to adjust to the low demand situation brought on by the COVID-19 affects including stay-at-home restrictions as well as consumers wary of infection risk during air travel. Airlines are working on the latter by creating new cleaning and sanitizing practices and procedures, requiring face coverings on flights, and aiming to allow for social distancing from check-in through deplaning.
Image source: Getty Images.
The airline has cut its capacity by 80% in both April and May, and announced a 70% capacity reduction in June. It has been looking to reduce expenses and support its balance sheet, including seeking relief from mandatory minimum route requirements to avoid money-losing flights.
To attain the planned staff reductions of more than 5,000 employees, the airline is looking for volunteers to accept buyouts. If it doesn't get enough by June 10, 2020, the company said the balance will be forced layoffs, according to the report. The employees will remain on the payroll until Sept. 30, 2020. Airlines had to commit to retain all employees through Sept. 30, by accepting federal aid through the CARES Act.
"We must plan for operating a smaller airline for the foreseeable future," said American's executive vice president of people and global engagement, according to the report.
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 April 16, 2020
Howard Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
After reporting a $2.2 billion loss in its first quarter due to the impacts of the COVID-19 pandemic, American Airlines Group (NASDAQ: AAL) announced that it would cut $12 billion in expenses as it was "rightsizing the airline and its cost structure." The airline is working to adjust to the low demand situation brought on by the COVID-19 affects including stay-at-home restrictions as well as consumers wary of infection risk during air travel. Airlines are working on the latter by creating new cleaning and sanitizing practices and procedures, requiring face coverings on flights, and aiming to allow for social distancing from check-in through deplaning.
|
After reporting a $2.2 billion loss in its first quarter due to the impacts of the COVID-19 pandemic, American Airlines Group (NASDAQ: AAL) announced that it would cut $12 billion in expenses as it was "rightsizing the airline and its cost structure." The airline has cut its capacity by 80% in both April and May, and announced a 70% capacity reduction in June. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.
|
After reporting a $2.2 billion loss in its first quarter due to the impacts of the COVID-19 pandemic, American Airlines Group (NASDAQ: AAL) announced that it would cut $12 billion in expenses as it was "rightsizing the airline and its cost structure." 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 April 16, 2020 Howard Smith has no position in any of the stocks mentioned.
|
After reporting a $2.2 billion loss in its first quarter due to the impacts of the COVID-19 pandemic, American Airlines Group (NASDAQ: AAL) announced that it would cut $12 billion in expenses as it was "rightsizing the airline and its cost structure." The airline has cut its capacity by 80% in both April and May, and announced a 70% capacity reduction in June. To attain the planned staff reductions of more than 5,000 employees, the airline is looking for volunteers to accept buyouts.
|
5821.0
|
2020-05-28 00:00:00 UTC
|
Delta Stock a Cautious Buy as Air Travel Demand Remains Up In the Air
|
AAL
|
https://www.nasdaq.com/articles/delta-stock-a-cautious-buy-as-air-travel-demand-remains-up-in-the-air-2020-05-29
|
nan
|
nan
|
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
[Editor’s Note: “Stay on the Sidelines While Delta (DAL) Stock Is Up in the Air” was originally published April 13, 2020. It is regularly updated to include the most relevant information.]
Source: Markus Mainka / Shutterstock.com
With investors jumping back into airlines, what’s next for Delta Air Lines (NYSE:DAL) stock? The legacy carrier’s shares have rallied 50% off their lows set in mid-May. While the novel coronavirus continues to impact air travel, Wall Street is betting on a swift recovery.
However, many things remain uncertain. On one hand, air travel is slowly rebounding from its extreme lows in weeks prior. On the other hand, even if the novel coronavirus quickly fades away, it could be years until a rebound happens, as some industry leaders have predicted.
Yet, while airline stocks remain risky, DAL stock may be a cautious way to bet on a V-shaped recovery for the industry.
Why? Delta is relatively stronger than legacy rivals like American Airlines (NASDAQ:AAL) and United Airlines (NASDAQ:UAL). That doesn’t guarantee they will survive today’s headwinds. Yet, being the “best of the worst” may be enough to justify a buy.
Let’s dive in, and see why it could be a shrewd move in hindsight to jump in at today’s prices.
What’s Next for DAL Stock After Covid-19?
The three major legacy airlines, American, Delta, and United, all face big trouble from the coronavirus. With the lion’s share of their routes inactive, cash is quickly flying out of the window.
Compared to the other two, is Delta stock a stronger rebound opportunity? At first glance, it’s hard to say yes. In March, CEO Ed Bastian reported in a letter to employees the airline was burning through “$50 million in cash each day” due to the pandemic. In other words, about $1.5 billion a month.
Yet, they may have enough capital to wait things out. According to Raymond James’ Savanthi Syth, the company has about 11 months of liquidity. And, with air travel slowly picking up, they can probably stretch that out a bit.
Previously, Stifel’s Joseph DeNardi cited Delta as being financially stronger relative to rivals like American. That may not mean much as underlying demand remains depressed. But it could indicate this stock is the best legacy carrier to bet on for an industry rebound.
However, a swift recovery remains a long shot. It may be up to five years before airlines recover from the coronavirus. Also, airline stocks could pull back again on the heels of additional bad news. Air travel may be slowly returning. But, with load factors expected to be less than half of pre-pandemic levels, profitability will remain a challenge.
Given how risky and uncertain the airline situation has become, it’s no surprise Warren Buffett sold Berkshire Hathaway’s (NYSE:BRK.A, NYSE:BRK.B) stake in Delta.
Did Buffett Call the Bottom?
In April, Berkshire Hathaway exited their position in DAL, along with other airline stocks like American, United, and Southwest Airlines (NYSE:LUV).
Given the big change in the operating environment for airlines, it makes perfect sense Buffett and Berkshire did a 180 on airline stocks.
Best case scenario, airlines ride out the weak air travel market, and return to prior price levels a few years out. Worst case scenario? Government intervention fails to keep airlines afloat, they require additional bailouts/capital infusions, and their share prices fall to lower levels.
In short, the thesis has changed on airline stocks. It’s no surprise Buffett cut his losses.
Yet, did the “Oracle of Omaha” call the bottom, as a Barron’s article predicted in May? It looks like it. Granted, the near-term picture for airlines remains bleak. But, with the specter of air travel bouncing back sooner than predicted, it may be too late to go short airline stocks. Legacy carriers remain a high-risk proposition. But, by going long the “least broken” of the three, investors could see additional gains in the near-term.
Buy DAL Stock, Even if Things Remain Up in the Air
Delta has a stronger balance sheet than its legacy rivals. But it’s all relative. With billions flying out the door each month due to the coronavirus, the company faces a tough road ahead. Travel demand may be slowly bouncing back. But that doesn’t mean a swift return to profitability.
Yet, bleak prospects have already been priced into this stock. Buffett may have called the bottom. Sure, investors could be getting ahead of themselves. But, DAL stock may move even higher as positive developments continue.
Thomas Niel, contributor to InvestorPlace, has written single-stock analysis for web-based publications since 2016. As of this writing, Thomas Niel did not hold a position in any of the aforementioned securities.
The post Delta Stock a Cautious Buy as Air Travel Demand Remains Up In the Air 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.
|
Delta is relatively stronger than legacy rivals like American Airlines (NASDAQ:AAL) and United Airlines (NASDAQ:UAL). Source: Markus Mainka / Shutterstock.com With investors jumping back into airlines, what’s next for Delta Air Lines (NYSE:DAL) stock? In March, CEO Ed Bastian reported in a letter to employees the airline was burning through “$50 million in cash each day” due to the pandemic.
|
Delta is relatively stronger than legacy rivals like American Airlines (NASDAQ:AAL) and United Airlines (NASDAQ:UAL). In April, Berkshire Hathaway exited their position in DAL, along with other airline stocks like American, United, and Southwest Airlines (NYSE:LUV). The post Delta Stock a Cautious Buy as Air Travel Demand Remains Up In the Air appeared first on InvestorPlace.
|
Delta is relatively stronger than legacy rivals like American Airlines (NASDAQ:AAL) and United Airlines (NASDAQ:UAL). InvestorPlace - Stock Market News, Stock Advice & Trading Tips [Editor’s Note: “Stay on the Sidelines While Delta (DAL) Stock Is Up in the Air” was originally published April 13, 2020. Yet, while airline stocks remain risky, DAL stock may be a cautious way to bet on a V-shaped recovery for the industry.
|
Delta is relatively stronger than legacy rivals like American Airlines (NASDAQ:AAL) and United Airlines (NASDAQ:UAL). Source: Markus Mainka / Shutterstock.com With investors jumping back into airlines, what’s next for Delta Air Lines (NYSE:DAL) stock? Buy DAL Stock, Even if Things Remain Up in the Air Delta has a stronger balance sheet than its legacy rivals.
|
5822.0
|
2020-05-28 00:00:00 UTC
|
U.S. major airlines roll out more options to avoid staff lay-offs
|
AAL
|
https://www.nasdaq.com/articles/u.s.-major-airlines-roll-out-more-options-to-avoid-staff-lay-offs-2020-05-28-0
|
nan
|
nan
|
By Tracy Rucinski and David Shepardson
May 28 (Reuters) - The top three U.S. airlines, hit hard by the coronavirus pandemic, are rolling out fresh programs to induce tens of thousands of employees to accept voluntary leave or early retirement in the hope of avoiding widespread furloughs in the fall, company memos show.
Around 100,000 employees of American Airlines Group Inc AAL.O, Delta Air Lines Inc DAL.N and United Airlines Holdings Inc UAL.O have already accepted offers for temporary or permanent leaves, the companies have said.
But airlines must continue reducing their workforces to align their businesses with the sharp downfall in air travel, while keeping enough workers, particularly pilots whose training is costly and lengthy, to service any recovery.
If airlines furlough too many workers, "the bounce-back is almost impossible," United Chief Executive Scott Kirby said at a conference on Thursday.
United is in talks with its labor unions on voluntary options that Kirby said are focused more on the bounce-back than on "survivability."
Airlines have said cancellations are slowing and bookings are improving, though their flying schedules are still just about 20% of what they would normally be.
Delta, with around 91,000 employees, is to announce on Thursday details of an enhanced retirement package for long-term employees and a separate voluntary opt-out package. Both include cash severance, full healthcare coverage and travel benefits, a memo dated May 27 showed.
"Every voluntary departure helps to protect the jobs of those who most need them," CEO Ed Bastian said in the memo to employees. He added: "I can't emphasize enough how challenging the environment is, and will be for the foreseeable future."
U.S. airlines cannot force any job or pay rate cuts until Oct. 1 under the terms of the federal CARES Act, which provides billions of dollars to help cover their payroll expenses until Sept. 30.
After that date, airlines have warned of involuntary reductions if overall workforces are still larger than needed.
American Airlines, with more than 100,000 employees, told its management and support staff on Wednesday that it must cut about 30% of their ranks, the same size of reductions planned by United for its management and administrative employees.
American is also discussing voluntary options with unions representing pilots and flight attendants, and Delta with its pilots' union. Delta's flight attendants are not unionized.
(Reporting by Tracy Rucinski and David Shepardson; Editing by Dan Grebler and Aurora Ellis)
((tracy.rucinski@thomsonreuters.com; 1-312-408-8575; Reuters Messaging: tracy.rucinski.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.
|
Around 100,000 employees of American Airlines Group Inc AAL.O, Delta Air Lines Inc DAL.N and United Airlines Holdings Inc UAL.O have already accepted offers for temporary or permanent leaves, the companies have said. By Tracy Rucinski and David Shepardson May 28 (Reuters) - The top three U.S. airlines, hit hard by the coronavirus pandemic, are rolling out fresh programs to induce tens of thousands of employees to accept voluntary leave or early retirement in the hope of avoiding widespread furloughs in the fall, company memos show. But airlines must continue reducing their workforces to align their businesses with the sharp downfall in air travel, while keeping enough workers, particularly pilots whose training is costly and lengthy, to service any recovery.
|
Around 100,000 employees of American Airlines Group Inc AAL.O, Delta Air Lines Inc DAL.N and United Airlines Holdings Inc UAL.O have already accepted offers for temporary or permanent leaves, the companies have said. By Tracy Rucinski and David Shepardson May 28 (Reuters) - The top three U.S. airlines, hit hard by the coronavirus pandemic, are rolling out fresh programs to induce tens of thousands of employees to accept voluntary leave or early retirement in the hope of avoiding widespread furloughs in the fall, company memos show. American is also discussing voluntary options with unions representing pilots and flight attendants, and Delta with its pilots' union.
|
Around 100,000 employees of American Airlines Group Inc AAL.O, Delta Air Lines Inc DAL.N and United Airlines Holdings Inc UAL.O have already accepted offers for temporary or permanent leaves, the companies have said. By Tracy Rucinski and David Shepardson May 28 (Reuters) - The top three U.S. airlines, hit hard by the coronavirus pandemic, are rolling out fresh programs to induce tens of thousands of employees to accept voluntary leave or early retirement in the hope of avoiding widespread furloughs in the fall, company memos show. American Airlines, with more than 100,000 employees, told its management and support staff on Wednesday that it must cut about 30% of their ranks, the same size of reductions planned by United for its management and administrative employees.
|
Around 100,000 employees of American Airlines Group Inc AAL.O, Delta Air Lines Inc DAL.N and United Airlines Holdings Inc UAL.O have already accepted offers for temporary or permanent leaves, the companies have said. By Tracy Rucinski and David Shepardson May 28 (Reuters) - The top three U.S. airlines, hit hard by the coronavirus pandemic, are rolling out fresh programs to induce tens of thousands of employees to accept voluntary leave or early retirement in the hope of avoiding widespread furloughs in the fall, company memos show. United is in talks with its labor unions on voluntary options that Kirby said are focused more on the bounce-back than on "survivability."
|
5823.0
|
2020-05-28 00:00:00 UTC
|
Reports: American Airlines Plans Job Cut - Quick Facts
|
AAL
|
https://www.nasdaq.com/articles/reports%3A-american-airlines-plans-job-cut-quick-facts-2020-05-28
|
nan
|
nan
|
(RTTNews) - As per media reports, American Airlines Group Inc. (AAL) is planning to reduce 30 percent of its management and support roles as part of its measures to cut costs. The airline is reportedly offering buyouts for the affected staff.
In April, the U.S. Department of the Treasury had approved $5.8 billion in financial assistance for American Airlines Group Inc. from the Payroll Support Program (PSP) created through the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The Payroll Support Program protects American's team members from involuntary furloughs or pay rate reductions through Sept. 30, 2020.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
(RTTNews) - As per media reports, American Airlines Group Inc. (AAL) is planning to reduce 30 percent of its management and support roles as part of its measures to cut costs. In April, the U.S. Department of the Treasury had approved $5.8 billion in financial assistance for American Airlines Group Inc. from the Payroll Support Program (PSP) created through the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The Payroll Support Program protects American's team members from involuntary furloughs or pay rate reductions through Sept. 30, 2020.
|
(RTTNews) - As per media reports, American Airlines Group Inc. (AAL) is planning to reduce 30 percent of its management and support roles as part of its measures to cut costs. In April, the U.S. Department of the Treasury had approved $5.8 billion in financial assistance for American Airlines Group Inc. from the Payroll Support Program (PSP) created through the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The Payroll Support Program protects American's team members from involuntary furloughs or pay rate reductions through Sept. 30, 2020.
|
(RTTNews) - As per media reports, American Airlines Group Inc. (AAL) is planning to reduce 30 percent of its management and support roles as part of its measures to cut costs. In April, the U.S. Department of the Treasury had approved $5.8 billion in financial assistance for American Airlines Group Inc. from the Payroll Support Program (PSP) created through the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
(RTTNews) - As per media reports, American Airlines Group Inc. (AAL) is planning to reduce 30 percent of its management and support roles as part of its measures to cut costs. The airline is reportedly offering buyouts for the affected staff. In April, the U.S. Department of the Treasury had approved $5.8 billion in financial assistance for American Airlines Group Inc. from the Payroll Support Program (PSP) created through the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
|
5824.0
|
2020-05-28 00:00:00 UTC
|
Why Two Stocks Had Dramatically Different Reactions to Job Cuts
|
AAL
|
https://www.nasdaq.com/articles/why-two-stocks-had-dramatically-different-reactions-to-job-cuts-2020-05-28
|
nan
|
nan
|
Over the last 24 hours or so, two separate but related companies announced big cuts in staff, with vastly different effects on their stock. When Boeing (BA) said yesterday that they were cutting 12,000 jobs, their stock jumped. By contrast when American Airlines (AAL) announced 5,000 job losses this morning, their stock fell. There were other factors of course, but the difference in the reactions was striking.
Most of the time, if you can detach yourself from the human tragedy of job loss and the negative impact on the economy overall, job cuts during times like this are a good thing for the companies involved. Lean times lead to corporations cutting fat and, when things return to normal, these companies emerge as better run, more efficient organizations.
That makes the difference in the market reaction here even more puzzling. Boeing’s cuts were focused on production workers, while American Airlines’ were made to middle management. One would think that “fat-trimming” pen-pushers is more likely to lead to greater efficiency and be more likely to turn out to have long-term benefits than cutting blue collar workers who actually make things. The market, however, reacted as if the opposite were true.
Some will see this as another example of Wall Street seeing workers as dispensable commodities with limited worth, while overvaluing “management,” but it is probably more about other news and long-term prospects than a fundamental disdain for working people.
Boeing announced shortly after the cuts that they are resuming production of their troubled 737-Max airliner. Their CEO also talked about “green shoots” appearing in their airline business, which is obviously encouraging, and pointed out that Boeing isn’t solely reliant on air travel and has other very profitable divisions, most notably defense contracting.
American, on the other hand, has been trying to offset persistent speculation about another bankruptcy. Their CEO has made it clear in the last few days that that is not an option they are even considering. You would think too that they would benefit from those green shoots that Boeing talked of, but the market apparently sees the announcement of job cuts here as another reason to be fearful rather than as a necessary, but ultimately reassuring move.
So, what does all this mean for investors?
It seems to me that the most important news here is getting lost. The fact that American Airlines is not considering bankruptcy and is actively taking moves to prepare for a long haul out of the current situation is actually extremely good news considering where the stock is. AAL has bounced off the lows, but still closed yesterday more than 60% off its recent high.
That is understandable in some ways, since the airline industry is likely to face long-lasting effects from the pandemic, but if you accept that bankruptcy is off the table, history suggests that AAL is a decent long-term buy. While this is a unique situation in some ways, the airlines have seen sudden big drops in traffic before, whether that was post-9/11, during the recession, or any one of a number of other times. Those haven’t always ended well for shareholders, but traffic has always recovered.
One could argue though that Boeing is setting itself up for some short-term problems. Long-term, their size and strategic importance, particularly on the defense side of things, will ensure that they survive to take advantage of the good times when they come. But let’s not forget that the stock was falling even before coronavirus. The 737-Max problems were getting worse with every bit of news, and they're not going away any time soon. Restarting production of that airliner sends a positive signal, but it could turn out to be a short-term liability rather than an advantage.
In the long run, the chances are that both BA and AAL will be fine, and that both stocks will move significantly higher over the next few months. For now, though, the different reactions to similar news mean that AAL is at what looks like a good entry point for a trade, while those looking to buy BA might want to wait for a pullback.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
That is understandable in some ways, since the airline industry is likely to face long-lasting effects from the pandemic, but if you accept that bankruptcy is off the table, history suggests that AAL is a decent long-term buy. By contrast when American Airlines (AAL) announced 5,000 job losses this morning, their stock fell. AAL has bounced off the lows, but still closed yesterday more than 60% off its recent high.
|
By contrast when American Airlines (AAL) announced 5,000 job losses this morning, their stock fell. AAL has bounced off the lows, but still closed yesterday more than 60% off its recent high. That is understandable in some ways, since the airline industry is likely to face long-lasting effects from the pandemic, but if you accept that bankruptcy is off the table, history suggests that AAL is a decent long-term buy.
|
By contrast when American Airlines (AAL) announced 5,000 job losses this morning, their stock fell. AAL has bounced off the lows, but still closed yesterday more than 60% off its recent high. That is understandable in some ways, since the airline industry is likely to face long-lasting effects from the pandemic, but if you accept that bankruptcy is off the table, history suggests that AAL is a decent long-term buy.
|
By contrast when American Airlines (AAL) announced 5,000 job losses this morning, their stock fell. AAL has bounced off the lows, but still closed yesterday more than 60% off its recent high. That is understandable in some ways, since the airline industry is likely to face long-lasting effects from the pandemic, but if you accept that bankruptcy is off the table, history suggests that AAL is a decent long-term buy.
|
5825.0
|
2020-05-28 00:00:00 UTC
|
U.S. major airlines roll out more options to avoid staff lay-offs
|
AAL
|
https://www.nasdaq.com/articles/u.s.-major-airlines-roll-out-more-options-to-avoid-staff-lay-offs-2020-05-28
|
nan
|
nan
|
By Tracy Rucinski and David Shepardson
May 28 (Reuters) - The top three U.S. airlines, hit hard by the coronavirus pandemic, are rolling out fresh programs to induce tens of thousands of employees to accept voluntary leave or early retirement in the hope of avoiding widespread furloughs in the fall, company memos show.
Around 100,000 employees of American Airlines Group Inc AAL.O, Delta Air Lines Inc DAL.N and United Airlines Holdings Inc UAL.O have already accepted offers for temporary or permanent leaves, memos show.
But airlines must continue reducing their workforces to match their businesses to a sharp downfall in air travel due to the coronavirus pandemic.
Delta, with around 91,000 employees, is to announce on Thursday details of an enhanced retirement package for long-term employees and a separate voluntary opt-out package. Both include cash severance, full healthcare coverage and travel benefits, a memo dated May 27 showed.
"Every voluntary departure helps to protect the jobs of those who most need them," CEO Ed Bastian said in the memo to employees. He added: "I can't emphasize enough how challenging the environment is, and will be for the foreseeable future."
U.S. airlines cannot force any job or pay rate cuts until Oct. 1 under the terms of the federal CARES Act, which provides billions of dollars to help cover their payroll expenses until Sept. 30.
After that date, airlines have warned of involuntary reductions if overall workforces are still larger than needed.
American Airlines, with more than 100,000 employees, told its management and support staff on Wednesday that it must cut about 30% of their ranks, the same size of reductions planned by United for its management and administrative employees.
Both American and United are also discussing voluntary options with unions representing frontline employees, including pilots and flight attendants.
Delta is also in talks with its pilots union on early retirement options.
(Reporting by Tracy Rucinski and David Shepardson; Editing by Dan Grebler)
((tracy.rucinski@thomsonreuters.com; 1-312-408-8575; Reuters Messaging: tracy.rucinski.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.
|
Around 100,000 employees of American Airlines Group Inc AAL.O, Delta Air Lines Inc DAL.N and United Airlines Holdings Inc UAL.O have already accepted offers for temporary or permanent leaves, memos show. By Tracy Rucinski and David Shepardson May 28 (Reuters) - The top three U.S. airlines, hit hard by the coronavirus pandemic, are rolling out fresh programs to induce tens of thousands of employees to accept voluntary leave or early retirement in the hope of avoiding widespread furloughs in the fall, company memos show. U.S. airlines cannot force any job or pay rate cuts until Oct. 1 under the terms of the federal CARES Act, which provides billions of dollars to help cover their payroll expenses until Sept. 30.
|
Around 100,000 employees of American Airlines Group Inc AAL.O, Delta Air Lines Inc DAL.N and United Airlines Holdings Inc UAL.O have already accepted offers for temporary or permanent leaves, memos show. By Tracy Rucinski and David Shepardson May 28 (Reuters) - The top three U.S. airlines, hit hard by the coronavirus pandemic, are rolling out fresh programs to induce tens of thousands of employees to accept voluntary leave or early retirement in the hope of avoiding widespread furloughs in the fall, company memos show. Both American and United are also discussing voluntary options with unions representing frontline employees, including pilots and flight attendants.
|
Around 100,000 employees of American Airlines Group Inc AAL.O, Delta Air Lines Inc DAL.N and United Airlines Holdings Inc UAL.O have already accepted offers for temporary or permanent leaves, memos show. By Tracy Rucinski and David Shepardson May 28 (Reuters) - The top three U.S. airlines, hit hard by the coronavirus pandemic, are rolling out fresh programs to induce tens of thousands of employees to accept voluntary leave or early retirement in the hope of avoiding widespread furloughs in the fall, company memos show. American Airlines, with more than 100,000 employees, told its management and support staff on Wednesday that it must cut about 30% of their ranks, the same size of reductions planned by United for its management and administrative employees.
|
Around 100,000 employees of American Airlines Group Inc AAL.O, Delta Air Lines Inc DAL.N and United Airlines Holdings Inc UAL.O have already accepted offers for temporary or permanent leaves, memos show. By Tracy Rucinski and David Shepardson May 28 (Reuters) - The top three U.S. airlines, hit hard by the coronavirus pandemic, are rolling out fresh programs to induce tens of thousands of employees to accept voluntary leave or early retirement in the hope of avoiding widespread furloughs in the fall, company memos show. Delta is also in talks with its pilots union on early retirement options.
|
5826.0
|
2020-05-28 00:00:00 UTC
|
Coronavirus drives De Beers to shift diamond sights from Botswana
|
AAL
|
https://www.nasdaq.com/articles/coronavirus-drives-de-beers-to-shift-diamond-sights-from-botswana-2020-05-28
|
nan
|
nan
|
By Brian Benza
GABORONE, May 28 (Reuters) - Global diamond giant, De Beers has agreed with the government of Botswana to move diamond sales temporarily to places closer to international diamond centres to try to restart diamond trading hit by coronavirus travel restrictions.
Anglo American AAL.L unit De Beers sells 90 percent of its total supply from Gaborone, capital of Botswana, whose economy relies on diamonds.
But since the coronavirus pandemic, diamond buyers from traditional centres, such as Antwerp and Mumbai, have been unable to travel to Botswana, which they previously visited ten times a year to view and buy diamonds.
"If we can move our product closer to them it would give us the flexibility to restart sales as soon as the markets reopen," De Beers Executive Vice President, Diamond Trading, Paul Rowley told a media briefing Thursday.
"The temporary measure will enable us and our government partners to generate some revenue in this difficult period."
The two-month coronavirus lockdown in Belgium halted business in Antwerp, the world's largest diamond trade centre. Antwerp reopened at the start of this month.
Movement restrictions and weaker demand forced De Beers to cancel its diamond sales, known as sights, in April and May after the February sale declined by 36 percent to $551 million.
De Beers, which gets 70 percent of its production from Botswana, is curbing output. It has revised downwards its 2020 production guidance by 7 million carats to between 25 and 27 million carats.
Botswana has a low number of coronavirus infections with 35 cases recorded and one death.
However, the economy has been severely impacted by the outbreak with the budget deficit expected to more than double as reduced diamond sales and exports impact revenues.
(Reporting by Brian Benza; editing by Barbara Lewis)
((Tanisha.Heiberg@thomsonreuters.com; +27117753034; Reuters Messaging: tanisha.heiberg.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Anglo American AAL.L unit De Beers sells 90 percent of its total supply from Gaborone, capital of Botswana, whose economy relies on diamonds. "If we can move our product closer to them it would give us the flexibility to restart sales as soon as the markets reopen," De Beers Executive Vice President, Diamond Trading, Paul Rowley told a media briefing Thursday. The two-month coronavirus lockdown in Belgium halted business in Antwerp, the world's largest diamond trade centre.
|
Anglo American AAL.L unit De Beers sells 90 percent of its total supply from Gaborone, capital of Botswana, whose economy relies on diamonds. By Brian Benza GABORONE, May 28 (Reuters) - Global diamond giant, De Beers has agreed with the government of Botswana to move diamond sales temporarily to places closer to international diamond centres to try to restart diamond trading hit by coronavirus travel restrictions. "If we can move our product closer to them it would give us the flexibility to restart sales as soon as the markets reopen," De Beers Executive Vice President, Diamond Trading, Paul Rowley told a media briefing Thursday.
|
Anglo American AAL.L unit De Beers sells 90 percent of its total supply from Gaborone, capital of Botswana, whose economy relies on diamonds. By Brian Benza GABORONE, May 28 (Reuters) - Global diamond giant, De Beers has agreed with the government of Botswana to move diamond sales temporarily to places closer to international diamond centres to try to restart diamond trading hit by coronavirus travel restrictions. But since the coronavirus pandemic, diamond buyers from traditional centres, such as Antwerp and Mumbai, have been unable to travel to Botswana, which they previously visited ten times a year to view and buy diamonds.
|
Anglo American AAL.L unit De Beers sells 90 percent of its total supply from Gaborone, capital of Botswana, whose economy relies on diamonds. By Brian Benza GABORONE, May 28 (Reuters) - Global diamond giant, De Beers has agreed with the government of Botswana to move diamond sales temporarily to places closer to international diamond centres to try to restart diamond trading hit by coronavirus travel restrictions. Movement restrictions and weaker demand forced De Beers to cancel its diamond sales, known as sights, in April and May after the February sale declined by 36 percent to $551 million.
|
5827.0
|
2020-05-28 00:00:00 UTC
|
Alrosa sees May diamond sales at tens of millions of dollars
|
AAL
|
https://www.nasdaq.com/articles/alrosa-sees-may-diamond-sales-at-tens-of-millions-of-dollars-2020-05-28
|
nan
|
nan
|
By Polina Devitt
MOSCOW, May 28 (Reuters) - Russian diamond producer Alrosa ALRS.MM expects its sales for May to total tens of million dollars, down sharply from May 2019 but up from April 2020, when its diamonds sales were worth $16 million, its chief executive told Reuters.
The new coronavirus outbreak has largely spared employees of Alrosa's main production assets in Russia so far, but April sales by the world's largest producer of rough diamonds plunged 95% due to a demand slump.
"We are ready for this," Sergei Ivanov, CEO of the state-controlled Alrosa said. "We do not rule out that sales will also remain quite low in the summer compared with a year ago." Alrosa sold diamonds for $266 million in May 2019.
He said he was willing to be flexible over volumes and pricing as this would ensure the market recovered more quickly.
Global demand for diamonds may improve in August-September as quarantine measures are eased, Ivanov said, adding the company's balance sheet was robust with more than in $1 billion of accumulated cash and its equivalents.
But Alrosa is considering a new loan or debt refinancing later in 2020 as it will need to repay $513 million of debt, mainly to its Eurobond holders.
"We understand that our financial condition allows us to come through this year - until demand becomes normal - without serious problems," the CEO said.
Ivanov also said Alrosa's 2021 production was likely to be lower than its 2020 output plan of 28-31 million carats.
"We understand that the market will be recovering for months and that it makes no sense for us to build up our already big stockpile," Ivanov said.
Alrosa, which has a stockpile of more than 23 million carats, will retain its 30%global marketshare as its main peer Anglo American AAL.L unit De Beers and other producers are reducing output too, Ivanov said.
(Reporting by Polina Devitt; editing by Barbara Lewis)
((Polina.Devitt@thomsonreuters.com; +7 495 775 12 42; Reuters Messaging: polina.devitt.reuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Alrosa, which has a stockpile of more than 23 million carats, will retain its 30%global marketshare as its main peer Anglo American AAL.L unit De Beers and other producers are reducing output too, Ivanov said. The new coronavirus outbreak has largely spared employees of Alrosa's main production assets in Russia so far, but April sales by the world's largest producer of rough diamonds plunged 95% due to a demand slump. Global demand for diamonds may improve in August-September as quarantine measures are eased, Ivanov said, adding the company's balance sheet was robust with more than in $1 billion of accumulated cash and its equivalents.
|
Alrosa, which has a stockpile of more than 23 million carats, will retain its 30%global marketshare as its main peer Anglo American AAL.L unit De Beers and other producers are reducing output too, Ivanov said. By Polina Devitt MOSCOW, May 28 (Reuters) - Russian diamond producer Alrosa ALRS.MM expects its sales for May to total tens of million dollars, down sharply from May 2019 but up from April 2020, when its diamonds sales were worth $16 million, its chief executive told Reuters. The new coronavirus outbreak has largely spared employees of Alrosa's main production assets in Russia so far, but April sales by the world's largest producer of rough diamonds plunged 95% due to a demand slump.
|
Alrosa, which has a stockpile of more than 23 million carats, will retain its 30%global marketshare as its main peer Anglo American AAL.L unit De Beers and other producers are reducing output too, Ivanov said. By Polina Devitt MOSCOW, May 28 (Reuters) - Russian diamond producer Alrosa ALRS.MM expects its sales for May to total tens of million dollars, down sharply from May 2019 but up from April 2020, when its diamonds sales were worth $16 million, its chief executive told Reuters. The new coronavirus outbreak has largely spared employees of Alrosa's main production assets in Russia so far, but April sales by the world's largest producer of rough diamonds plunged 95% due to a demand slump.
|
Alrosa, which has a stockpile of more than 23 million carats, will retain its 30%global marketshare as its main peer Anglo American AAL.L unit De Beers and other producers are reducing output too, Ivanov said. By Polina Devitt MOSCOW, May 28 (Reuters) - Russian diamond producer Alrosa ALRS.MM expects its sales for May to total tens of million dollars, down sharply from May 2019 but up from April 2020, when its diamonds sales were worth $16 million, its chief executive told Reuters. "We are ready for this," Sergei Ivanov, CEO of the state-controlled Alrosa said.
|
5828.0
|
2020-05-28 00:00:00 UTC
|
Why Shares of Airlines Are Falling Today
|
AAL
|
https://www.nasdaq.com/articles/why-shares-of-airlines-are-falling-today-2020-05-28
|
nan
|
nan
|
What happened
After a brief rally earlier in the week on hopes of an improving economy, airline shares are in the red once again on Thursday. Some of the nation's largest airlines are proceeding with plans to try to cut their headcount, a clear indication that despite glimmers of hope the worst is behind us, management teams still expect a long, rough road ahead.
Shares of American Airlines Group (NASDAQ: AAL) were down 6.6% as of 2:30 p.m. EDT and shares of United Airlines Holdings (NASDAQ: UAL) were down 4.4%. Delta Air Lines (NYSE: DAL), which earlier in the day was down 5.2%, had recovered some of that loss, but were still down on a day when broader markets are up.
So what
Airline shares have been hit hard by the COVID-19 pandemic, which has reduced travel demand to a trickle and caused carriers that a few months ago were focused on expansion to instead worry about their survival. The companies are stable, in part thanks to $50 billion in government assistance for the industry as part of the CARES Act stimulus plan, but that stability has come with a price.
Image source: Getty Images.
As part of the terms of the stimulus funding, airlines are prohibited from doing any layoffs or involuntary separations through Sept. 30. Lawmakers were hopeful that if the travel slump was temporary, large numbers of layoffs could be avoided.
As we head into June, airlines seem increasingly skeptical about a quick recovery. United Airlines has been blunt in forecasting reductions since March, warning that furloughs were inevitable even as they were accepting bailout cash.
Delta and American are also looking to shrink. American is seeking to cut more about 30% of total managerial and administrative support positions, or about 5,000 jobs, initially via voluntary buyouts but through layoffs if necessary. The airline said employees will remain on the payroll until Sept. 30, 2020, as required by the CARES Act, but will be dismissed after that date.
Meanwhile, in a memo to employees, Delta outlined its own buyout package, offering four to 20 weeks of severance, a year of paid medical coverage, and travel benefits. Those who qualify for early retirement would get up to 26 weeks of severance and two years of medical coverage.
Now what
The message is clear: No matter what happens with the pandemic and the economy, the airlines expect to be considerably smaller in the years to come than they were on Jan. 1. It's too soon to say what will ultimately become of the companies, in part because it is impossible to predict a pandemic, but even in the best-case scenarios we're not getting back to normal any time soon.
The good news, if there is good news, is that the sector is incredibly cheap by historical measures right now, with all of the carriers trading at less than one times their revenue over the last 12 months. Assuming the companies survive and eventually return to pre-pandemic levels, there is a lot of upside from here.
Given the uncertainty, it is dangerous to assume. But for those with a tolerance for risk and interest in nibbling on airlines, I'd advise choosing carefully to make sure you are holding the companies with the highest odds of flying through the crisis.
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 April 16, 2020
Lou Whiteman owns shares of Delta Air Lines. The Motley Fool recommends Delta Air Lines. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Shares of American Airlines Group (NASDAQ: AAL) were down 6.6% as of 2:30 p.m. EDT and shares of United Airlines Holdings (NASDAQ: UAL) were down 4.4%. Some of the nation's largest airlines are proceeding with plans to try to cut their headcount, a clear indication that despite glimmers of hope the worst is behind us, management teams still expect a long, rough road ahead. So what Airline shares have been hit hard by the COVID-19 pandemic, which has reduced travel demand to a trickle and caused carriers that a few months ago were focused on expansion to instead worry about their survival.
|
Shares of American Airlines Group (NASDAQ: AAL) were down 6.6% as of 2:30 p.m. EDT and shares of United Airlines Holdings (NASDAQ: UAL) were down 4.4%. See the 10 stocks *Stock Advisor returns as of April 16, 2020 Lou Whiteman owns shares of Delta Air Lines. The Motley Fool recommends Delta Air Lines.
|
Shares of American Airlines Group (NASDAQ: AAL) were down 6.6% as of 2:30 p.m. EDT and shares of United Airlines Holdings (NASDAQ: UAL) were down 4.4%. 10 stocks we like better than United Airlines Holdings When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. See the 10 stocks *Stock Advisor returns as of April 16, 2020 Lou Whiteman owns shares of Delta Air Lines.
|
Shares of American Airlines Group (NASDAQ: AAL) were down 6.6% as of 2:30 p.m. EDT and shares of United Airlines Holdings (NASDAQ: UAL) were down 4.4%. The companies are stable, in part thanks to $50 billion in government assistance for the industry as part of the CARES Act stimulus plan, but that stability has come with a price. The Motley Fool recommends Delta Air Lines.
|
5829.0
|
2020-05-27 00:00:00 UTC
|
Don’t Rush to Buy Delta Stock, There’s Plenty of Time to Bottom Fish
|
AAL
|
https://www.nasdaq.com/articles/dont-rush-to-buy-delta-stock-theres-plenty-of-time-to-bottom-fish-2020-05-27
|
nan
|
nan
|
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The novel coronavirus pandemic has hammered the airline sector, leaving companies like Delta Airlines (NYSE:DAL) struggling to find a way forward. But in recent weeks, positive news regarding progress on a coronavirus vaccine encouraged bottom feeders to scoop up DAL stock on this dip.
Source: Markus Mainka / Shutterstock.com
Delta’s rally has been nothing short of impressive — share prices have gained nearly 20% since mid-May.
But DAL still trades more than 60% off of February prices, begging the question, should you chase this rally?
The Case for DAL Stock
While the state of airline travel has been worrying over the past few weeks, there have been some glimmers of hope suggesting a sooner-than-expected recovery.
25 Stocks to Buy for the Reopening Rally
Positive vaccine news is, above all, the largest tailwind for the sector. In the absence of a vaccine, many people will be unwilling to travel and new coronavirus-related measures will make it difficult for airlines to turn a profit.
But promising data from Moderna (NASDAQ:MRNA) and other biotechs working on possible vaccine candidates has no-doubt been a boon for DAL stock.
More importantly, is the fact that travelers are starting to return to air travel in the absence of a vaccine. Data from the Transport Security Agency shows that the number of people passing through their security checkpoints is steadily rising. On May 13, passenger traffic had grown 26% from the previous week.
The Bad News for Delta
Unfortunately, the good news ends there. While passenger numbers according to the TSA are on the rise, it’s important to consider that they’re still less than 10% of the volumes seen in 2019.
While passengers returning to air travel is a good thing, it’s worth noting that airlines will continue to struggle until their planes are full.
Social distancing makes operating a profitable airline nearly impossible. Just trying to enforce rules like mandatory masks and no large gatherings during boarding and deplaning takes time to implement.
But worse still is the fact that many are calling for planes to leave the middle seat empty in order to give passengers more space. Doing so would pose a significant problem for carriers like Delta, who are trying to claw back any last profits they can to dig themselves out of this hole.
Delta Confirms Long-Timeline for Return to Travel
There have been a lot of estimates floating around for when travel is expected to return to pre-pandemic levels. Each one is dependent on a major unknown — the trajectory of the coronavirus and the likelihood of a second wave in Autumn.
But Delta offered a telling sign of its own expectations earlier the week when it retired its entire fleet of Boeing 777 planes. Delta CEO Ed Bastain said the retirement will help stop some of the bleeding as the firm hemorrhages $50 billion in cash each day.
The news suggests Delta isn’t banking on passengers taking international trips in the near future. For the second quarter Delta forecast international flights to be down 90%, but beyond that it’s anyone’s guess.
Because coronavirus has impacted countries around the world in different ways, international travel will likely take the most time to resume as countries open and shut their borders in response to new virus outbreaks.
Leisure travelers are likely to stay closer to home until the pandemic is seen as largely under control. Some families will probably cancel their summer holiday plans altogether as the economic downturn has caused a great deal of financial uncertainty.
The Bottom Line for Delta
To be sure, Delta isn’t the worst pick in the airline sector — but it also isn’t the best. For now, Southwest (NYSE:LUV) looks best positioned to capitalize on a return to domestic travel. The airline’s strong financials make it the most likely to weather the storm unscathed and potentially benefit from peers going bust.
But while Delta is in a better financial position than American Airlines (NYSE:AAL), it’s still carrying around a hefty debt pile and has taken more government bailout money than any of its competitors.
Delta is an average pick in an extremely risky sector, and that’s why it’s worth staying on the sidelines. In my view, investors have plenty of time to go bottom fishing in the airline industry because it will remain depressed for a long time to come.
As of this writing Laura Hoy did not hold a position in any of the aforementioned securities.
The post Don’t Rush to Buy Delta Stock, There’s Plenty of Time to Bottom Fish 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.
|
But while Delta is in a better financial position than American Airlines (NYSE:AAL), it’s still carrying around a hefty debt pile and has taken more government bailout money than any of its competitors. But in recent weeks, positive news regarding progress on a coronavirus vaccine encouraged bottom feeders to scoop up DAL stock on this dip. The Case for DAL Stock While the state of airline travel has been worrying over the past few weeks, there have been some glimmers of hope suggesting a sooner-than-expected recovery.
|
But while Delta is in a better financial position than American Airlines (NYSE:AAL), it’s still carrying around a hefty debt pile and has taken more government bailout money than any of its competitors. InvestorPlace - Stock Market News, Stock Advice & Trading Tips The novel coronavirus pandemic has hammered the airline sector, leaving companies like Delta Airlines (NYSE:DAL) struggling to find a way forward. The news suggests Delta isn’t banking on passengers taking international trips in the near future.
|
But while Delta is in a better financial position than American Airlines (NYSE:AAL), it’s still carrying around a hefty debt pile and has taken more government bailout money than any of its competitors. InvestorPlace - Stock Market News, Stock Advice & Trading Tips The novel coronavirus pandemic has hammered the airline sector, leaving companies like Delta Airlines (NYSE:DAL) struggling to find a way forward. Delta Confirms Long-Timeline for Return to Travel There have been a lot of estimates floating around for when travel is expected to return to pre-pandemic levels.
|
But while Delta is in a better financial position than American Airlines (NYSE:AAL), it’s still carrying around a hefty debt pile and has taken more government bailout money than any of its competitors. InvestorPlace - Stock Market News, Stock Advice & Trading Tips The novel coronavirus pandemic has hammered the airline sector, leaving companies like Delta Airlines (NYSE:DAL) struggling to find a way forward. But in recent weeks, positive news regarding progress on a coronavirus vaccine encouraged bottom feeders to scoop up DAL stock on this dip.
|
5830.0
|
2020-05-27 00:00:00 UTC
|
Wall St set for higher open as recovery hopes outweigh Sino-U.S.tensions
|
AAL
|
https://www.nasdaq.com/articles/wall-st-set-for-higher-open-as-recovery-hopes-outweigh-sino-u.s.tensions-2020-05-27
|
nan
|
nan
|
By Medha Singh
May 27 (Reuters) - Wall Street's major indexes were set for another session of gains on Wednesday as a revival in business activity drove hopes of an economic recovery, eclipsing concerns over simmering tensions between the United States and China.
Travel-related stocks, which were among the worst hit in the sell-off earlier this year, continued to outperform.
United Airlines Holdings Inc UAL.O, American Airlines Group Inc AAL.O and Norwegian Cruise Line Holdings Ltd. NCLH.N jumped between 10% and 12% in premarket trade.
The easing of lockdowns, optimism about an eventual COVID-19 vaccine and the unprecedented monetary and fiscal stimulus have powered a recent rally, helping the S&P 500 .SPX end at its highest level since early March on Tuesday.
However, Sino-U.S. worries dented the sentiment late in the session and the benchmark index closed short of 3,000 points, a key psychological level, and below its 200-day moving average, which has acted as a resistance level.
President Donald Trump said the United States would announce its response to China's planned national security legislation for Hong Kong before the end of the week.
"The market's ability to compartmentalize U.S.-China tensions away from the bullish for risk reopening narrative, is a testament to the incredulous amounts of stimulus provided by central banks and government around the world," said Stephen Innes, chief market strategist at financial services firm AxiCorp.
At 7:53 a.m. ET, S&P 500 e-minis EScv1 were up 1.04% at 3,025 points. Dow e-minis 1YMcv1 were up 332 points, or 1.33% and Nasdaq 100 e-minis NQcv1 were up 43.25 points, or 0.46%.
Planemaker Boeing Co BA.N is expected to announce U.S. job cuts this week, people briefed on the plans and a union said. Its shares rose 3.1%.
Walt Disney Co DIS.N was set to announce its proposal for a phased reopening of its Orlando, Florida, theme parks to a local task force on Wednesday. Disney shares gained 2.5%.
Investors will also turn to the U.S. Federal Reserve's Beige Book of economic condition scheduled for release at 2 p.m. ET (1800 GMT).
(Reporting by Medha Singh in Bengaluru; Editing by Arun Koyyur)
((Medha.Singh@thomsonreuters.com; within U.S. +1646 223 8780, outside U.S. +91 80 6749 1130; Twitter: https://twitter.com/medhasinghs))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
United Airlines Holdings Inc UAL.O, American Airlines Group Inc AAL.O and Norwegian Cruise Line Holdings Ltd. NCLH.N jumped between 10% and 12% in premarket trade. By Medha Singh May 27 (Reuters) - Wall Street's major indexes were set for another session of gains on Wednesday as a revival in business activity drove hopes of an economic recovery, eclipsing concerns over simmering tensions between the United States and China. The easing of lockdowns, optimism about an eventual COVID-19 vaccine and the unprecedented monetary and fiscal stimulus have powered a recent rally, helping the S&P 500 .SPX end at its highest level since early March on Tuesday.
|
United Airlines Holdings Inc UAL.O, American Airlines Group Inc AAL.O and Norwegian Cruise Line Holdings Ltd. NCLH.N jumped between 10% and 12% in premarket trade. President Donald Trump said the United States would announce its response to China's planned national security legislation for Hong Kong before the end of the week. Disney shares gained 2.5%.
|
United Airlines Holdings Inc UAL.O, American Airlines Group Inc AAL.O and Norwegian Cruise Line Holdings Ltd. NCLH.N jumped between 10% and 12% in premarket trade. By Medha Singh May 27 (Reuters) - Wall Street's major indexes were set for another session of gains on Wednesday as a revival in business activity drove hopes of an economic recovery, eclipsing concerns over simmering tensions between the United States and China. President Donald Trump said the United States would announce its response to China's planned national security legislation for Hong Kong before the end of the week.
|
United Airlines Holdings Inc UAL.O, American Airlines Group Inc AAL.O and Norwegian Cruise Line Holdings Ltd. NCLH.N jumped between 10% and 12% in premarket trade. President Donald Trump said the United States would announce its response to China's planned national security legislation for Hong Kong before the end of the week. ET, S&P 500 e-minis EScv1 were up 1.04% at 3,025 points.
|
5831.0
|
2020-05-27 00:00:00 UTC
|
Why Airline Shares Soared Again at the Open Today
|
AAL
|
https://www.nasdaq.com/articles/why-airline-shares-soared-again-at-the-open-today-2020-05-27
|
nan
|
nan
|
What happened
Airline shares were flying higher again on Wednesday, the sector's second straight day of posting double-digit gains on improving optimism that the U.S. economy is in the early stages of a recovery. The shares gave back some of the advances as the morning continued, but much of the sector is still outperforming the broader markets as of midday.
Shares of Spirit Airlines (NYSE: SAVE) led the way at the open, jumping 18%, while shares of American Airlines Group (NASDAQ: AAL), United Airlines Holdings (NASDAQ: UAL), JetBlue Airways (NASDAQ: JBLU), Alaska Air Group (NYSE: ALK), Hawaiian Holdings (NASDAQ: HA), and Allegiant Travel (NASDAQ: ALGT) were all up double digits.
Delta Air Lines (NYSE: DAL) and Southwest Airlines (NYSE: LUV) are the relative laggards so far on Wednesday, each up "only" 8% at its peak.
So what
The airline sector has been hard-hit by the COVID-19 pandemic, with global travel demand reduced to near zero. The carriers are flying only 5% to 10% of their planned schedules in May, and with revenue bottoming out, the airlines have been scrambling to cut costs and raise liquidity.
Image source: Getty Images.
The industry, thanks in part to $50 billion in government assistance as part of the CARES Act stimulus legislation, has the wherewithal to manage through the near-term crisis. But no amount of cutting will be enough if traffic and revenue do not return in the months to come.
The airlines have rallied in recent days on hints that the economy is beginning to normalize. The U.S. Memorial Day weekend brought pictures of tourists returning to vacation hot spots, and the number of passengers being screened by airport security, while still down nearly 90% year over year, is slowly improving over April lows.
The stocks gave back some of those gains as the broader market reversed course, a sign of how delicate the recovery is.
Now what
Airline stocks all lost more than half of their value as the crisis intensified, and even one of the most well-respected investors bailed on the sector during the sell-off.
The airlines were priced as if bankruptcies were inevitable. With each new glimmer of hope that a recovery might be at hand, the odds of bankruptcies diminish somewhat.
Investors need to remain cautious here. The pandemic is far from resolved, and health experts continue to warn of the possibility of a second wave of infections that could cause economic activity to slow again. Even in the best-case scenario it is likely to take years for traffic to return to prepandemic levels, and the airlines will likely limp along in the quarters to come even if demand does return somewhat.
Investors interested into buying into the rally should tread carefully, and stick to top names with the best chance of surviving even if conditions do turn south again.
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 April 16, 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.
|
Shares of Spirit Airlines (NYSE: SAVE) led the way at the open, jumping 18%, while shares of American Airlines Group (NASDAQ: AAL), United Airlines Holdings (NASDAQ: UAL), JetBlue Airways (NASDAQ: JBLU), Alaska Air Group (NYSE: ALK), Hawaiian Holdings (NASDAQ: HA), and Allegiant Travel (NASDAQ: ALGT) were all up double digits. What happened Airline shares were flying higher again on Wednesday, the sector's second straight day of posting double-digit gains on improving optimism that the U.S. economy is in the early stages of a recovery. The carriers are flying only 5% to 10% of their planned schedules in May, and with revenue bottoming out, the airlines have been scrambling to cut costs and raise liquidity.
|
Shares of Spirit Airlines (NYSE: SAVE) led the way at the open, jumping 18%, while shares of American Airlines Group (NASDAQ: AAL), United Airlines Holdings (NASDAQ: UAL), JetBlue Airways (NASDAQ: JBLU), Alaska Air Group (NYSE: ALK), Hawaiian Holdings (NASDAQ: HA), and Allegiant Travel (NASDAQ: ALGT) were all up double digits. See the 10 stocks *Stock Advisor returns as of April 16, 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.
|
Shares of Spirit Airlines (NYSE: SAVE) led the way at the open, jumping 18%, while shares of American Airlines Group (NASDAQ: AAL), United Airlines Holdings (NASDAQ: UAL), JetBlue Airways (NASDAQ: JBLU), Alaska Air Group (NYSE: ALK), Hawaiian Holdings (NASDAQ: HA), and Allegiant Travel (NASDAQ: ALGT) were all up double digits. See the 10 stocks *Stock Advisor returns as of April 16, 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.
|
Shares of Spirit Airlines (NYSE: SAVE) led the way at the open, jumping 18%, while shares of American Airlines Group (NASDAQ: AAL), United Airlines Holdings (NASDAQ: UAL), JetBlue Airways (NASDAQ: JBLU), Alaska Air Group (NYSE: ALK), Hawaiian Holdings (NASDAQ: HA), and Allegiant Travel (NASDAQ: ALGT) were all up double digits. Even in the best-case scenario it is likely to take years for traffic to return to prepandemic levels, and the airlines will likely limp along in the quarters to come even if demand does return somewhat. * 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!
|
5832.0
|
2020-05-27 00:00:00 UTC
|
BUZZ-U.S. STOCKS ON THE MOVE-Mersana, Moderna, StoneCo
|
AAL
|
https://www.nasdaq.com/articles/buzz-u.s.-stocks-on-the-move-mersana-moderna-stoneco-2020-05-27
|
nan
|
nan
|
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
A selloff in technology stocks dragged on the S&P 500 and Nasdaq on Wednesday, with investors also cautious about brewing U.S.-China tensions at a time when policymakers are attempting to revive the global economy from a coronavirus-driven slump..N
At 11:01 ET, the Dow Jones Industrial Average .DJI was up 0.51% at 25,122.27. The S&P 500 .SPX was down 0.33% at 2,981.9 and the Nasdaq Composite .IXIC was down 1.91% at 9,161.87. The top three S&P 500 .PG.INX percentage gainers: ** Nordstrom Inc , up 10.6% ** Discover Financial Services , up 8.6% ** Gap Inc , up 7.8 % The top three S&P 500 .PL.INX percentage losers: ** DexCom Inc , down 11.6% ** Nvidia Corp , down 7.7% ** ServiceNow Inc , down 7.4% The top three NYSE .PG.N percentage gainers: ** UBS AG London B/ETRACS Monthly Pay , up 32.8% ** Microsectors U S Big Banks Index 3X EFN , up 32% ** Moog Inc , up 17.1% The top three NYSE .PL.N percentage losers: ** Microsectors U S Big Banks Index 3x , down 39.3% ** Renren Inc , down 18.5% ** Vapotherm Inc , down 14.5% The top three Nasdaq .PG.O percentage gainers: ** Euroseas Ltd , up 31.6% ** Mersana Therapeutics Inc , up 31.8% ** Liberty Media Corp , up 30.9% The top three Nasdaq .PL.O percentage losers: ** Arcturus Therapeutics Holdings Inc , down 32.6% ** Oasis Midstream Partners LP , down 24.2% ** La Jolla Pharmaceutical Co , down 24.1% ** HEICO Corp HEI.N: up 4.6%
BUZZ-Jumps as margins hold steady even as sales fall ** Mersana Therapeutics Inc MRSN.O: up 32%
BUZZ-Up on positive data from cancer therapy study ** Papa John's International Inc PZZA.O: up 1.6%
** Domino's Pizza Inc DPZ.N: up 1.0%
BUZZ-Pizza chains heat up on upbeat comparable sales numbers ** Twitter Inc TWTR.N: down 4.6% ** Facebook Inc FB.O: down 3.9%
BUZZ-Fall after Trump threatens to shutter social media ** Moderna Inc MRNA.O: down 16.5%
BUZZ-Extends losses after COVID-19 vaccine news ** Ralph Lauren Corp RL.N: up 1.2%
BUZZ-Rises on upbeat China outlook ** Photronics Inc PLAB.O: down 10.2%
BUZZ-Falls on Q2 revenue miss, tepid forecast ** Novavax Inc NVAX.O: down 11.8%
BUZZ-Down after $167 mln acquisition to boost COVID-19 vaccine production ** StoneCo Ltd STNE.O: up 21.3% BUZZ-Surges on growth in payment volume ** WPX Energy Inc WPX.N: down 2.0% ** Parsley Energy Inc PE.N: down 3.3% ** Concho Resources Inc CXO.N: down 2.3% ** Antero Resources Corp AR.N: down 3.1% ** Laredo Petroleum Inc LPI.N: down 6.6% ** Chesapeake Energy Corp CHK.N: down 2.7% BUZZ-GS recommends WPX Energy, Concho, Parsley among well-hedged E&P stocks
** Dentsply Sirona Inc XRAY.O: up 3.2% BUZZ-In solid post-COVID position vs peers; upgrades- Evercore ** Vipshop Holdings Ltd VIPS.N: up 3.1% BUZZ-Rises after Q1 sales exceed forecast ** Zoetis Inc ZTS.N: up 0.4% BUZZ-Jefferies starts with 'buy' on innovation, demand for pet health products ** TransMedics Group Inc TMDX.O: down 16.1% BUZZ-Slips after co prices upsized $70 mln stock offering USN ** American Airlines Group Inc AAL.O: up 3.3% ** Delta Air Lines Inc DAL.N: down 0.6% ** United Airlines Holdings Inc UAL.O: up 0.4% ** Southwest Airlines Co LUV.N: down 0.7% ** Spirit Airlines Inc SAVE.N: up 4.4% ** JetBlue Airways Corp JBLU.O: up 0.6% ** Alaska Air Group Inc ALK.N: up 1.3% BUZZ-U.S. airlines: Set to gain some lost ground as lockdowns ease ** Dorian LPG Ltd LPG.N: up 5.6% BUZZ-Climbs on Q1 profit beat, revenue surge ** Arcus Biosciences Inc RCUS.N: down 12.8% BUZZ-Drops after Gilead investment comes at no premium ** Goldman Sachs Group Inc GS.N: up 3.8% ** JPMorgan Chase & Co JPM.N: up 4.1% ** Citigroup Inc C.N: up 5.1% ** Wells Fargo & Co WFC.N: up 3.9% ** Bank of America Corp BAC.N: up 4.0% ** Morgan Stanley MS.N: up 4.8% BUZZ-U.S. Banks: Track rise in yields as risk appetite improves ** Innovative Industrial Properties Inc IIPR.N: down 3.6% BUZZ-Falls after pricing share offering ** Fiverr International Ltd FVRR.N: down 14.6% BUZZ-Falls on $100 mln shares offering
The 11 major S&P 500 sectors:
Communication Services
.SPLRCL
down 1.24%
Consumer Discretionary
.SPLRCD
down 0.88%
Consumer Staples
.SPLRCS
up 0.72%
Energy
.SPNY
down 0.56%
Financial
.SPSY
up 2.91%
Health
.SPXHC
down 1.29%
Industrial
.SPLRCI
up 1.88%
Information Technology
.SPLRCT
down 1.91%
Materials
.SPLRCM
up 0.08%
Real Estate
.SPLRCR
up 0.08%
Utilities
.SPLRCU
up 0.67%
(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.
|
The top three S&P 500 .PG.INX percentage gainers: ** Nordstrom Inc , up 10.6% ** Discover Financial Services , up 8.6% ** Gap Inc , up 7.8 % The top three S&P 500 .PL.INX percentage losers: ** DexCom Inc , down 11.6% ** Nvidia Corp , down 7.7% ** ServiceNow Inc , down 7.4% The top three NYSE .PG.N percentage gainers: ** UBS AG London B/ETRACS Monthly Pay , up 32.8% ** Microsectors U S Big Banks Index 3X EFN , up 32% ** Moog Inc , up 17.1% The top three NYSE .PL.N percentage losers: ** Microsectors U S Big Banks Index 3x , down 39.3% ** Renren Inc , down 18.5% ** Vapotherm Inc , down 14.5% The top three Nasdaq .PG.O percentage gainers: ** Euroseas Ltd , up 31.6% ** Mersana Therapeutics Inc , up 31.8% ** Liberty Media Corp , up 30.9% The top three Nasdaq .PL.O percentage losers: ** Arcturus Therapeutics Holdings Inc , down 32.6% ** Oasis Midstream Partners LP , down 24.2% ** La Jolla Pharmaceutical Co , down 24.1% ** HEICO Corp HEI.N: up 4.6% BUZZ-Jumps as margins hold steady even as sales fall ** Mersana Therapeutics Inc MRSN.O: up 32% BUZZ-Up on positive data from cancer therapy study ** Papa John's International Inc PZZA.O: up 1.6% ** Domino's Pizza Inc DPZ.N: up 1.0% BUZZ-Pizza chains heat up on upbeat comparable sales numbers ** Twitter Inc TWTR.N: down 4.6% ** Facebook Inc FB.O: down 3.9% BUZZ-Fall after Trump threatens to shutter social media ** Moderna Inc MRNA.O: down 16.5% BUZZ-Extends losses after COVID-19 vaccine news ** Ralph Lauren Corp RL.N: up 1.2% BUZZ-Rises on upbeat China outlook ** Photronics Inc PLAB.O: down 10.2% BUZZ-Falls on Q2 revenue miss, tepid forecast ** Novavax Inc NVAX.O: down 11.8% BUZZ-Down after $167 mln acquisition to boost COVID-19 vaccine production ** StoneCo Ltd STNE.O: up 21.3% BUZZ-Surges on growth in payment volume ** WPX Energy Inc WPX.N: down 2.0% ** Parsley Energy Inc PE.N: down 3.3% ** Concho Resources Inc CXO.N: down 2.3% ** Antero Resources Corp AR.N: down 3.1% ** Laredo Petroleum Inc LPI.N: down 6.6% ** Chesapeake Energy Corp CHK.N: down 2.7% BUZZ-GS recommends WPX Energy, Concho, Parsley among well-hedged E&P stocks ** Dentsply Sirona Inc XRAY.O: up 3.2% BUZZ-In solid post-COVID position vs peers; upgrades- Evercore ** Vipshop Holdings Ltd VIPS.N: up 3.1% BUZZ-Rises after Q1 sales exceed forecast ** Zoetis Inc ZTS.N: up 0.4% BUZZ-Jefferies starts with 'buy' on innovation, demand for pet health products ** TransMedics Group Inc TMDX.O: down 16.1% BUZZ-Slips after co prices upsized $70 mln stock offering USN ** American Airlines Group Inc AAL.O: up 3.3% ** Delta Air Lines Inc DAL.N: down 0.6% ** United Airlines Holdings Inc UAL.O: up 0.4% ** Southwest Airlines Co LUV.N: down 0.7% ** Spirit Airlines Inc SAVE.N: up 4.4% ** JetBlue Airways Corp JBLU.O: up 0.6% ** Alaska Air Group Inc ALK.N: up 1.3% BUZZ-U.S. airlines: Set to gain some lost ground as lockdowns ease ** Dorian LPG Ltd LPG.N: up 5.6% BUZZ-Climbs on Q1 profit beat, revenue surge ** Arcus Biosciences Inc RCUS.N: down 12.8% BUZZ-Drops after Gilead investment comes at no premium ** Goldman Sachs Group Inc GS.N: up 3.8% ** JPMorgan Chase & Co JPM.N: up 4.1% ** Citigroup Inc C.N: up 5.1% ** Wells Fargo & Co WFC.N: up 3.9% ** Bank of America Corp BAC.N: up 4.0% ** Morgan Stanley MS.N: up 4.8% BUZZ-U.S. Banks: Track rise in yields as risk appetite improves ** Innovative Industrial Properties Inc IIPR.N: down 3.6% BUZZ-Falls after pricing share offering ** Fiverr International Ltd FVRR.N: down 14.6% BUZZ-Falls on $100 mln shares offering The 11 major S&P 500 sectors: Communication Services Eikon search string for individual stock moves: STXBZ The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh A selloff in technology stocks dragged on the S&P 500 and Nasdaq on Wednesday, with investors also cautious about brewing U.S.-China tensions at a time when policymakers are attempting to revive the global economy from a coronavirus-driven slump..N At 11:01 ET, the Dow Jones Industrial Average .DJI was up 0.51% at 25,122.27. up 0.67% (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.
|
The top three S&P 500 .PG.INX percentage gainers: ** Nordstrom Inc , up 10.6% ** Discover Financial Services , up 8.6% ** Gap Inc , up 7.8 % The top three S&P 500 .PL.INX percentage losers: ** DexCom Inc , down 11.6% ** Nvidia Corp , down 7.7% ** ServiceNow Inc , down 7.4% The top three NYSE .PG.N percentage gainers: ** UBS AG London B/ETRACS Monthly Pay , up 32.8% ** Microsectors U S Big Banks Index 3X EFN , up 32% ** Moog Inc , up 17.1% The top three NYSE .PL.N percentage losers: ** Microsectors U S Big Banks Index 3x , down 39.3% ** Renren Inc , down 18.5% ** Vapotherm Inc , down 14.5% The top three Nasdaq .PG.O percentage gainers: ** Euroseas Ltd , up 31.6% ** Mersana Therapeutics Inc , up 31.8% ** Liberty Media Corp , up 30.9% The top three Nasdaq .PL.O percentage losers: ** Arcturus Therapeutics Holdings Inc , down 32.6% ** Oasis Midstream Partners LP , down 24.2% ** La Jolla Pharmaceutical Co , down 24.1% ** HEICO Corp HEI.N: up 4.6% BUZZ-Jumps as margins hold steady even as sales fall ** Mersana Therapeutics Inc MRSN.O: up 32% BUZZ-Up on positive data from cancer therapy study ** Papa John's International Inc PZZA.O: up 1.6% ** Domino's Pizza Inc DPZ.N: up 1.0% BUZZ-Pizza chains heat up on upbeat comparable sales numbers ** Twitter Inc TWTR.N: down 4.6% ** Facebook Inc FB.O: down 3.9% BUZZ-Fall after Trump threatens to shutter social media ** Moderna Inc MRNA.O: down 16.5% BUZZ-Extends losses after COVID-19 vaccine news ** Ralph Lauren Corp RL.N: up 1.2% BUZZ-Rises on upbeat China outlook ** Photronics Inc PLAB.O: down 10.2% BUZZ-Falls on Q2 revenue miss, tepid forecast ** Novavax Inc NVAX.O: down 11.8% BUZZ-Down after $167 mln acquisition to boost COVID-19 vaccine production ** StoneCo Ltd STNE.O: up 21.3% BUZZ-Surges on growth in payment volume ** WPX Energy Inc WPX.N: down 2.0% ** Parsley Energy Inc PE.N: down 3.3% ** Concho Resources Inc CXO.N: down 2.3% ** Antero Resources Corp AR.N: down 3.1% ** Laredo Petroleum Inc LPI.N: down 6.6% ** Chesapeake Energy Corp CHK.N: down 2.7% BUZZ-GS recommends WPX Energy, Concho, Parsley among well-hedged E&P stocks ** Dentsply Sirona Inc XRAY.O: up 3.2% BUZZ-In solid post-COVID position vs peers; upgrades- Evercore ** Vipshop Holdings Ltd VIPS.N: up 3.1% BUZZ-Rises after Q1 sales exceed forecast ** Zoetis Inc ZTS.N: up 0.4% BUZZ-Jefferies starts with 'buy' on innovation, demand for pet health products ** TransMedics Group Inc TMDX.O: down 16.1% BUZZ-Slips after co prices upsized $70 mln stock offering USN ** American Airlines Group Inc AAL.O: up 3.3% ** Delta Air Lines Inc DAL.N: down 0.6% ** United Airlines Holdings Inc UAL.O: up 0.4% ** Southwest Airlines Co LUV.N: down 0.7% ** Spirit Airlines Inc SAVE.N: up 4.4% ** JetBlue Airways Corp JBLU.O: up 0.6% ** Alaska Air Group Inc ALK.N: up 1.3% BUZZ-U.S. airlines: Set to gain some lost ground as lockdowns ease ** Dorian LPG Ltd LPG.N: up 5.6% BUZZ-Climbs on Q1 profit beat, revenue surge ** Arcus Biosciences Inc RCUS.N: down 12.8% BUZZ-Drops after Gilead investment comes at no premium ** Goldman Sachs Group Inc GS.N: up 3.8% ** JPMorgan Chase & Co JPM.N: up 4.1% ** Citigroup Inc C.N: up 5.1% ** Wells Fargo & Co WFC.N: up 3.9% ** Bank of America Corp BAC.N: up 4.0% ** Morgan Stanley MS.N: up 4.8% BUZZ-U.S. Banks: Track rise in yields as risk appetite improves ** Innovative Industrial Properties Inc IIPR.N: down 3.6% BUZZ-Falls after pricing share offering ** Fiverr International Ltd FVRR.N: down 14.6% BUZZ-Falls on $100 mln shares offering The 11 major S&P 500 sectors: Communication Services Eikon search string for individual stock moves: STXBZ The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh A selloff in technology stocks dragged on the S&P 500 and Nasdaq on Wednesday, with investors also cautious about brewing U.S.-China tensions at a time when policymakers are attempting to revive the global economy from a coronavirus-driven slump..N At 11:01 ET, the Dow Jones Industrial Average .DJI was up 0.51% at 25,122.27. up 0.67% (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.
|
The top three S&P 500 .PG.INX percentage gainers: ** Nordstrom Inc , up 10.6% ** Discover Financial Services , up 8.6% ** Gap Inc , up 7.8 % The top three S&P 500 .PL.INX percentage losers: ** DexCom Inc , down 11.6% ** Nvidia Corp , down 7.7% ** ServiceNow Inc , down 7.4% The top three NYSE .PG.N percentage gainers: ** UBS AG London B/ETRACS Monthly Pay , up 32.8% ** Microsectors U S Big Banks Index 3X EFN , up 32% ** Moog Inc , up 17.1% The top three NYSE .PL.N percentage losers: ** Microsectors U S Big Banks Index 3x , down 39.3% ** Renren Inc , down 18.5% ** Vapotherm Inc , down 14.5% The top three Nasdaq .PG.O percentage gainers: ** Euroseas Ltd , up 31.6% ** Mersana Therapeutics Inc , up 31.8% ** Liberty Media Corp , up 30.9% The top three Nasdaq .PL.O percentage losers: ** Arcturus Therapeutics Holdings Inc , down 32.6% ** Oasis Midstream Partners LP , down 24.2% ** La Jolla Pharmaceutical Co , down 24.1% ** HEICO Corp HEI.N: up 4.6% BUZZ-Jumps as margins hold steady even as sales fall ** Mersana Therapeutics Inc MRSN.O: up 32% BUZZ-Up on positive data from cancer therapy study ** Papa John's International Inc PZZA.O: up 1.6% ** Domino's Pizza Inc DPZ.N: up 1.0% BUZZ-Pizza chains heat up on upbeat comparable sales numbers ** Twitter Inc TWTR.N: down 4.6% ** Facebook Inc FB.O: down 3.9% BUZZ-Fall after Trump threatens to shutter social media ** Moderna Inc MRNA.O: down 16.5% BUZZ-Extends losses after COVID-19 vaccine news ** Ralph Lauren Corp RL.N: up 1.2% BUZZ-Rises on upbeat China outlook ** Photronics Inc PLAB.O: down 10.2% BUZZ-Falls on Q2 revenue miss, tepid forecast ** Novavax Inc NVAX.O: down 11.8% BUZZ-Down after $167 mln acquisition to boost COVID-19 vaccine production ** StoneCo Ltd STNE.O: up 21.3% BUZZ-Surges on growth in payment volume ** WPX Energy Inc WPX.N: down 2.0% ** Parsley Energy Inc PE.N: down 3.3% ** Concho Resources Inc CXO.N: down 2.3% ** Antero Resources Corp AR.N: down 3.1% ** Laredo Petroleum Inc LPI.N: down 6.6% ** Chesapeake Energy Corp CHK.N: down 2.7% BUZZ-GS recommends WPX Energy, Concho, Parsley among well-hedged E&P stocks ** Dentsply Sirona Inc XRAY.O: up 3.2% BUZZ-In solid post-COVID position vs peers; upgrades- Evercore ** Vipshop Holdings Ltd VIPS.N: up 3.1% BUZZ-Rises after Q1 sales exceed forecast ** Zoetis Inc ZTS.N: up 0.4% BUZZ-Jefferies starts with 'buy' on innovation, demand for pet health products ** TransMedics Group Inc TMDX.O: down 16.1% BUZZ-Slips after co prices upsized $70 mln stock offering USN ** American Airlines Group Inc AAL.O: up 3.3% ** Delta Air Lines Inc DAL.N: down 0.6% ** United Airlines Holdings Inc UAL.O: up 0.4% ** Southwest Airlines Co LUV.N: down 0.7% ** Spirit Airlines Inc SAVE.N: up 4.4% ** JetBlue Airways Corp JBLU.O: up 0.6% ** Alaska Air Group Inc ALK.N: up 1.3% BUZZ-U.S. airlines: Set to gain some lost ground as lockdowns ease ** Dorian LPG Ltd LPG.N: up 5.6% BUZZ-Climbs on Q1 profit beat, revenue surge ** Arcus Biosciences Inc RCUS.N: down 12.8% BUZZ-Drops after Gilead investment comes at no premium ** Goldman Sachs Group Inc GS.N: up 3.8% ** JPMorgan Chase & Co JPM.N: up 4.1% ** Citigroup Inc C.N: up 5.1% ** Wells Fargo & Co WFC.N: up 3.9% ** Bank of America Corp BAC.N: up 4.0% ** Morgan Stanley MS.N: up 4.8% BUZZ-U.S. Banks: Track rise in yields as risk appetite improves ** Innovative Industrial Properties Inc IIPR.N: down 3.6% BUZZ-Falls after pricing share offering ** Fiverr International Ltd FVRR.N: down 14.6% BUZZ-Falls on $100 mln shares offering The 11 major S&P 500 sectors: Communication Services Eikon search string for individual stock moves: STXBZ The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh A selloff in technology stocks dragged on the S&P 500 and Nasdaq on Wednesday, with investors also cautious about brewing U.S.-China tensions at a time when policymakers are attempting to revive the global economy from a coronavirus-driven slump..N At 11:01 ET, the Dow Jones Industrial Average .DJI was up 0.51% at 25,122.27. down 1.24% Consumer Discretionary
|
The top three S&P 500 .PG.INX percentage gainers: ** Nordstrom Inc , up 10.6% ** Discover Financial Services , up 8.6% ** Gap Inc , up 7.8 % The top three S&P 500 .PL.INX percentage losers: ** DexCom Inc , down 11.6% ** Nvidia Corp , down 7.7% ** ServiceNow Inc , down 7.4% The top three NYSE .PG.N percentage gainers: ** UBS AG London B/ETRACS Monthly Pay , up 32.8% ** Microsectors U S Big Banks Index 3X EFN , up 32% ** Moog Inc , up 17.1% The top three NYSE .PL.N percentage losers: ** Microsectors U S Big Banks Index 3x , down 39.3% ** Renren Inc , down 18.5% ** Vapotherm Inc , down 14.5% The top three Nasdaq .PG.O percentage gainers: ** Euroseas Ltd , up 31.6% ** Mersana Therapeutics Inc , up 31.8% ** Liberty Media Corp , up 30.9% The top three Nasdaq .PL.O percentage losers: ** Arcturus Therapeutics Holdings Inc , down 32.6% ** Oasis Midstream Partners LP , down 24.2% ** La Jolla Pharmaceutical Co , down 24.1% ** HEICO Corp HEI.N: up 4.6% BUZZ-Jumps as margins hold steady even as sales fall ** Mersana Therapeutics Inc MRSN.O: up 32% BUZZ-Up on positive data from cancer therapy study ** Papa John's International Inc PZZA.O: up 1.6% ** Domino's Pizza Inc DPZ.N: up 1.0% BUZZ-Pizza chains heat up on upbeat comparable sales numbers ** Twitter Inc TWTR.N: down 4.6% ** Facebook Inc FB.O: down 3.9% BUZZ-Fall after Trump threatens to shutter social media ** Moderna Inc MRNA.O: down 16.5% BUZZ-Extends losses after COVID-19 vaccine news ** Ralph Lauren Corp RL.N: up 1.2% BUZZ-Rises on upbeat China outlook ** Photronics Inc PLAB.O: down 10.2% BUZZ-Falls on Q2 revenue miss, tepid forecast ** Novavax Inc NVAX.O: down 11.8% BUZZ-Down after $167 mln acquisition to boost COVID-19 vaccine production ** StoneCo Ltd STNE.O: up 21.3% BUZZ-Surges on growth in payment volume ** WPX Energy Inc WPX.N: down 2.0% ** Parsley Energy Inc PE.N: down 3.3% ** Concho Resources Inc CXO.N: down 2.3% ** Antero Resources Corp AR.N: down 3.1% ** Laredo Petroleum Inc LPI.N: down 6.6% ** Chesapeake Energy Corp CHK.N: down 2.7% BUZZ-GS recommends WPX Energy, Concho, Parsley among well-hedged E&P stocks ** Dentsply Sirona Inc XRAY.O: up 3.2% BUZZ-In solid post-COVID position vs peers; upgrades- Evercore ** Vipshop Holdings Ltd VIPS.N: up 3.1% BUZZ-Rises after Q1 sales exceed forecast ** Zoetis Inc ZTS.N: up 0.4% BUZZ-Jefferies starts with 'buy' on innovation, demand for pet health products ** TransMedics Group Inc TMDX.O: down 16.1% BUZZ-Slips after co prices upsized $70 mln stock offering USN ** American Airlines Group Inc AAL.O: up 3.3% ** Delta Air Lines Inc DAL.N: down 0.6% ** United Airlines Holdings Inc UAL.O: up 0.4% ** Southwest Airlines Co LUV.N: down 0.7% ** Spirit Airlines Inc SAVE.N: up 4.4% ** JetBlue Airways Corp JBLU.O: up 0.6% ** Alaska Air Group Inc ALK.N: up 1.3% BUZZ-U.S. airlines: Set to gain some lost ground as lockdowns ease ** Dorian LPG Ltd LPG.N: up 5.6% BUZZ-Climbs on Q1 profit beat, revenue surge ** Arcus Biosciences Inc RCUS.N: down 12.8% BUZZ-Drops after Gilead investment comes at no premium ** Goldman Sachs Group Inc GS.N: up 3.8% ** JPMorgan Chase & Co JPM.N: up 4.1% ** Citigroup Inc C.N: up 5.1% ** Wells Fargo & Co WFC.N: up 3.9% ** Bank of America Corp BAC.N: up 4.0% ** Morgan Stanley MS.N: up 4.8% BUZZ-U.S. Banks: Track rise in yields as risk appetite improves ** Innovative Industrial Properties Inc IIPR.N: down 3.6% BUZZ-Falls after pricing share offering ** Fiverr International Ltd FVRR.N: down 14.6% BUZZ-Falls on $100 mln shares offering The 11 major S&P 500 sectors: Communication Services Eikon search string for individual stock moves: STXBZ The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh A selloff in technology stocks dragged on the S&P 500 and Nasdaq on Wednesday, with investors also cautious about brewing U.S.-China tensions at a time when policymakers are attempting to revive the global economy from a coronavirus-driven slump..N At 11:01 ET, the Dow Jones Industrial Average .DJI was up 0.51% at 25,122.27. The S&P 500 .SPX was down 0.33% at 2,981.9 and the Nasdaq Composite .IXIC was down 1.91% at 9,161.87.
|
5833.0
|
2020-05-27 00:00:00 UTC
|
There’s a Bull Case for Delta in a Bear Market
|
AAL
|
https://www.nasdaq.com/articles/theres-a-bull-case-for-delta-in-a-bear-market-2020-05-27
|
nan
|
nan
|
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Recent events scared potential investors away from already reeling airlines. Investors know there is a massive buying opportunity afoot, but fear and volatility are clouding their decision processes. For instance, Delta (NYSE:DAL) stock is suffering greatly during the novel coronavirus pandemic.
Source: Shutterstock
Delta’s market capitalization remained around $35 billion since 2017, but after DAL stock dropped in the first quarter as passengers cancelled their bookings, its market cap is now about $13.5 billion.
Delta is down, but not out. Although it has potential to be a great pickup, questions abound and any trepidation is understandable.
But there is ample reason to be a long-term bull on Delta stock.
25 Stocks to Buy for Returns on the Reopening Rally
The company’s stock price chart might strike fear into investors, and rightly so if you’re currently underwater. But the chart should lend optimism to investors with no current position in Delta stock.
At the time of this writing, DAL stock is around $20. Pre-coronavirus prices were hovering around low-$50s to low-$60s. Assuming a rebound in the coming years, a serious windfall should be there for investors.
A rebound to $40 per share means a 100% profit at current prices. Investors should be excited about Delta stock’s upside, and Delta’s position should provide reason to act on that excitement.
Click to Enlarge
The so-called BEACH (Bookings, Entertainment, Airlines, Cruises, Hotels) stocks have been particularly hard-hit during the coronavirus. Delta has seen its share price drop precipitously. Investors know that stocks in these sectors have been pummeled and they’re interested in picking them up cheaply.
At the same time, they’re scared that unpredictable events could lower prices further.
As one such example, Berkshire Hathaway’s (NYSE:BRK.A,NYSE:BRK.B) Warren Buffett recently sold out his position in all airlines. Roughly a week later, Boeing (NYSE:BA) CEO Dave Calhoun exacerbated the already tense situation. Calhoun announced that he foresees air traffic failing to reach 25% of pre-coronavirus levels by September, perhaps rising to 50% by year-end. Calhoun further suggested that a major carrier could go under by the end of the year.
Though he didn’t explicitly mention the airline by name, American Airlines (NASDAQ:AAL) was the most logical suspect. Some found it odd that Calhoun should make such comments given that he is not the CEO of a carrier itself, but rather a supplier to the industry. Further, Calhoun could damage relationships with the very people he seeks to supply.
The net effect of this one-two punch was more fear and apprehension surrounding an already beleaguered industry and a battered Delta whose stock is at historic lows.
What Kind of Turnaround Can DAL Stock Expect?
Delta sought to provide clarity regarding traffic expectations following Calhoun’s comments. The company responded by releasing a note regarding pilot cuts from which we can extrapolate potential air traffic in the same period.
Delta has 14,000 pilots. CEO Ed Bastian’s note stated that Delta expects to cut 7,000 of those pilots by the fourth quarter. Thus, we can assume Delta should be operating around 50% of the flights it was prior to the coronavirus pandemic in Q4.
So, from that, investors can gather some semblance of informed air-traffic expectations. Lower than 25% of previous levels seems highly unlikely.
Investors next need to consider when revenues might potentially return to normal. Revenue drives investor returns. Fortunately, investors can use analyst expectations about future revenues to provide a base for potential returns.
Analysts expect that Delta should anticipate $19 billion to $20 billion in revenue by 2020 year end. That figure increases to $35 billion in 2021, and roughly $38 billion by 2022.
Delta posted $47 billion in revenue in 2019, but that was a banner year. Investors should expect that buying into Delta’s turnaround via the carrier’s stock will require a holding period of a few years for prices to rebound.
Why Consider Delta Over Other Airlines?
Investors seeking to pick up undervalued airline stock at low prices have two choices: Delta or Southwest (NYSE:LUV). Both are relatively strong financially. There is little doubt at this time that either are at risk of bankruptcy.
Some investors could make a case for buying United (NASDAQ:UAL) as well, but I’d stay away as it is a poorer choice than Delta or Southwest. American is a no-go.
One of the main differentiating factors between Delta and Southwest is that the former was showing operating margin expansion while the later was showing a contraction. This bodes well for Delta.
Delta Can Weather the Storm Better Than Most
Delta has enough cash on hand to remain solvent for 10 to 11 months. Among major carriers, only Southwest is estimated to have more, at 16 months of coverage. Delta is among the best-situated airlines to ride out the storm.
Should another outbreak occur late in the year, the calculus of everything changes. Then perhaps it’s time to question which major airlines may go under. For now, such fear is unjustified.
Delta’s Excellent 2019
The company enjoyed a record 2019. Delta set new records for revenue ($47 billion), net income ($4.77 billion), and had a good load factor in 2019 (86.3%). It did so while increasing business and premium product sales 9% and loyalty revenue by $500 million to have what Bastian described as the company’s best year ever.
The company formerly had a mix of legacy fleets that was overly diversified, raising costs. Delta has enacted a plan to tackle the problem.
Fleet Reduction Will Help DAL Stock
The company prioritized fleet reductions during the pandemic that should ultimately improve efficiency and strengthen earnings. Delta operates 13 fleet families with a goal to reduce the number to eight. This will reduce maintenance costs and training costs among others, allowing more efficient operations. Delta’s stock should benefit.
In 2019 Delta increased its sales of business and premium products by 9%. The stated aim is to raise business and premium seating to above 30% of capacity. This is part and parcel of the fleet optimization strategy: Fewer and more profitable fleet families paired with more profitable sales. The more successful Delta is in re-branding itself as premium, likely the higher revenue should rise. The same is true of its effort to pare down its fleet.
Sure, there is a possibility to pick up DAL stock shares at an even lower price. Some investors will get lucky and buy then. Buy now because you and I can’t predict the absolute bottom. However, Delta and its stock looks to be best poised to turn around among the major carriers once things normalize.
As of this writing, Alex Sirois did not hold a position in any of the aforementioned securities.
The post There’s a Bull Case for Delta in a Bear Market 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.
|
Though he didn’t explicitly mention the airline by name, American Airlines (NASDAQ:AAL) was the most logical suspect. The net effect of this one-two punch was more fear and apprehension surrounding an already beleaguered industry and a battered Delta whose stock is at historic lows. Investors should expect that buying into Delta’s turnaround via the carrier’s stock will require a holding period of a few years for prices to rebound.
|
Though he didn’t explicitly mention the airline by name, American Airlines (NASDAQ:AAL) was the most logical suspect. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Recent events scared potential investors away from already reeling airlines. Investors should expect that buying into Delta’s turnaround via the carrier’s stock will require a holding period of a few years for prices to rebound.
|
Though he didn’t explicitly mention the airline by name, American Airlines (NASDAQ:AAL) was the most logical suspect. Investors should be excited about Delta stock’s upside, and Delta’s position should provide reason to act on that excitement. Investors should expect that buying into Delta’s turnaround via the carrier’s stock will require a holding period of a few years for prices to rebound.
|
Though he didn’t explicitly mention the airline by name, American Airlines (NASDAQ:AAL) was the most logical suspect. Delta is down, but not out. Delta posted $47 billion in revenue in 2019, but that was a banner year.
|
5834.0
|
2020-05-27 00:00:00 UTC
|
American Airlines not considering Chapter 11, demand improving -CEO
|
AAL
|
https://www.nasdaq.com/articles/american-airlines-not-considering-chapter-11-demand-improving-ceo-2020-05-27
|
nan
|
nan
|
May 27 (Reuters) - American Airlines Group Inc's AAL.O is not considering a Chapter 11 bankruptcy filing, CEO Doug Parker said in response to a question at a conference on Wednesday, but said he does expect the overall U.S. airline industry to be 10% to 20% smaller in the summer of 2021.
American's revenues are still down by about 90% due to the coronavirus pandemic, but demand is improving and passengers are feeling more comfortable flying, with American's planes about 56% full over the long U.S. Memorial Day weekend, albeit a drastically reduced flying schedule, he said.
(Reporting by Tracy Rucinski)
((tracy.rucinski@thomsonreuters.com; 1-312-408-8575; Reuters Messaging: tracy.rucinski.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.
|
May 27 (Reuters) - American Airlines Group Inc's AAL.O is not considering a Chapter 11 bankruptcy filing, CEO Doug Parker said in response to a question at a conference on Wednesday, but said he does expect the overall U.S. airline industry to be 10% to 20% smaller in the summer of 2021. American's revenues are still down by about 90% due to the coronavirus pandemic, but demand is improving and passengers are feeling more comfortable flying, with American's planes about 56% full over the long U.S. Memorial Day weekend, albeit a drastically reduced flying schedule, he said. (Reporting by Tracy Rucinski) ((tracy.rucinski@thomsonreuters.com; 1-312-408-8575; Reuters Messaging: tracy.rucinski.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.
|
May 27 (Reuters) - American Airlines Group Inc's AAL.O is not considering a Chapter 11 bankruptcy filing, CEO Doug Parker said in response to a question at a conference on Wednesday, but said he does expect the overall U.S. airline industry to be 10% to 20% smaller in the summer of 2021. American's revenues are still down by about 90% due to the coronavirus pandemic, but demand is improving and passengers are feeling more comfortable flying, with American's planes about 56% full over the long U.S. Memorial Day weekend, albeit a drastically reduced flying schedule, he said. (Reporting by Tracy Rucinski) ((tracy.rucinski@thomsonreuters.com; 1-312-408-8575; Reuters Messaging: tracy.rucinski.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.
|
May 27 (Reuters) - American Airlines Group Inc's AAL.O is not considering a Chapter 11 bankruptcy filing, CEO Doug Parker said in response to a question at a conference on Wednesday, but said he does expect the overall U.S. airline industry to be 10% to 20% smaller in the summer of 2021. American's revenues are still down by about 90% due to the coronavirus pandemic, but demand is improving and passengers are feeling more comfortable flying, with American's planes about 56% full over the long U.S. Memorial Day weekend, albeit a drastically reduced flying schedule, he said. (Reporting by Tracy Rucinski) ((tracy.rucinski@thomsonreuters.com; 1-312-408-8575; Reuters Messaging: tracy.rucinski.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.
|
May 27 (Reuters) - American Airlines Group Inc's AAL.O is not considering a Chapter 11 bankruptcy filing, CEO Doug Parker said in response to a question at a conference on Wednesday, but said he does expect the overall U.S. airline industry to be 10% to 20% smaller in the summer of 2021. American's revenues are still down by about 90% due to the coronavirus pandemic, but demand is improving and passengers are feeling more comfortable flying, with American's planes about 56% full over the long U.S. Memorial Day weekend, albeit a drastically reduced flying schedule, he said. (Reporting by Tracy Rucinski) ((tracy.rucinski@thomsonreuters.com; 1-312-408-8575; Reuters Messaging: tracy.rucinski.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.
|
5835.0
|
2020-05-27 00:00:00 UTC
|
American Airlines says to cut management and support staff by 30%
|
AAL
|
https://www.nasdaq.com/articles/american-airlines-says-to-cut-management-and-support-staff-by-30-2020-05-27-0
|
nan
|
nan
|
By Tracy Rucinski
May 27 (Reuters) - American Airlines Group Inc AAL.O must reduce its management and support staff by about 30% and may have to cut frontline employees as it downsizes due to the coronavirus outbreak, showed a letter to employees made public on Wednesday.
All major U.S. airlines have said they will need to shrink in the fall, once U.S. government payroll aid that bans involuntary job cuts expires on Sept. 30.
Competitor United Airlines Holdings Inc UAL.O has also said it will need to reduce its management and administrative staff by about 30%.
Despite the bailout and other liquidity raises, American must "plan for operating a smaller airline for the foreseeable future," Executive Vice President of People and Global Engagement Elise Eberwein said in the letter.
American, with over 100,000 employees, will offer voluntary options before implementing involuntary reductions if there is not enough take-up, she said.
Once it has reduced its management ranks, the company will turn to frontline employees including flight attendants and pilots, who will receive fresh voluntary leave and early retirement options in June with the aim of avoiding involuntary furloughs.
"This is a goal, though, not a commitment, and a stretch goal at that," Eberwein said, adding the company will be working with unions in coming weeks and months.
American has said it is accelerating fleet retirement and expects to fly roughly 100 fewer aircraft in the summer of 2021. Nearly 40,000 employees have already opted for temporary voluntary leave or early retirement.
Earlier, American Chief Executive Doug Parker said the airline hoped to avoid furloughs and rejected speculation that it or another major U.S. carrier will have to file for Chapter 11 bankruptcy protection due to the coronavirus crisis.
American Airlines CEO quells U.S. bankruptcy talk, says demand improving
(Reporting by Tracy Rucinski; Editing by Himani Sarkar and Christopher Cushing)
((tracy.rucinski@thomsonreuters.com; 1-312-408-8575; Reuters Messaging: tracy.rucinski.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
By Tracy Rucinski May 27 (Reuters) - American Airlines Group Inc AAL.O must reduce its management and support staff by about 30% and may have to cut frontline employees as it downsizes due to the coronavirus outbreak, showed a letter to employees made public on Wednesday. Despite the bailout and other liquidity raises, American must "plan for operating a smaller airline for the foreseeable future," Executive Vice President of People and Global Engagement Elise Eberwein said in the letter. Once it has reduced its management ranks, the company will turn to frontline employees including flight attendants and pilots, who will receive fresh voluntary leave and early retirement options in June with the aim of avoiding involuntary furloughs.
|
By Tracy Rucinski May 27 (Reuters) - American Airlines Group Inc AAL.O must reduce its management and support staff by about 30% and may have to cut frontline employees as it downsizes due to the coronavirus outbreak, showed a letter to employees made public on Wednesday. Once it has reduced its management ranks, the company will turn to frontline employees including flight attendants and pilots, who will receive fresh voluntary leave and early retirement options in June with the aim of avoiding involuntary furloughs. Nearly 40,000 employees have already opted for temporary voluntary leave or early retirement.
|
By Tracy Rucinski May 27 (Reuters) - American Airlines Group Inc AAL.O must reduce its management and support staff by about 30% and may have to cut frontline employees as it downsizes due to the coronavirus outbreak, showed a letter to employees made public on Wednesday. Once it has reduced its management ranks, the company will turn to frontline employees including flight attendants and pilots, who will receive fresh voluntary leave and early retirement options in June with the aim of avoiding involuntary furloughs. American Airlines CEO quells U.S. bankruptcy talk, says demand improving (Reporting by Tracy Rucinski; Editing by Himani Sarkar and Christopher Cushing) ((tracy.rucinski@thomsonreuters.com; 1-312-408-8575; Reuters Messaging: tracy.rucinski.thomsonreuters.com@reuters.net)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
By Tracy Rucinski May 27 (Reuters) - American Airlines Group Inc AAL.O must reduce its management and support staff by about 30% and may have to cut frontline employees as it downsizes due to the coronavirus outbreak, showed a letter to employees made public on Wednesday. All major U.S. airlines have said they will need to shrink in the fall, once U.S. government payroll aid that bans involuntary job cuts expires on Sept. 30. Once it has reduced its management ranks, the company will turn to frontline employees including flight attendants and pilots, who will receive fresh voluntary leave and early retirement options in June with the aim of avoiding involuntary furloughs.
|
5836.0
|
2020-05-27 00:00:00 UTC
|
American Airlines says to cut management and support staff by 30%
|
AAL
|
https://www.nasdaq.com/articles/american-airlines-says-to-cut-management-and-support-staff-by-30-2020-05-27
|
nan
|
nan
|
May 27 (Reuters) - American Airlines Group Inc AAL.O must reduce its management and support staff by about 30% as it moves to run a smaller airline due to the coronavirus pandemic, according to a letter to employees made public on Wednesday.
American will first offer voluntary options to employees and will implement involuntary reductions if there is not enough take-up, Elise Eberwein, executive vice president of people and global engagement said in the letter.
United Airlines Holdings Inc UAL.O has also said it will need to reduce its management and administrative staff by about 30% once U.S. government payroll aid expires in the fall.
(Reporting by Tracy Rucinski; Editing by Himani Sarkar)
((tracy.rucinski@thomsonreuters.com; 1-312-408-8575; Reuters Messaging: tracy.rucinski.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.
|
May 27 (Reuters) - American Airlines Group Inc AAL.O must reduce its management and support staff by about 30% as it moves to run a smaller airline due to the coronavirus pandemic, according to a letter to employees made public on Wednesday. American will first offer voluntary options to employees and will implement involuntary reductions if there is not enough take-up, Elise Eberwein, executive vice president of people and global engagement said in the letter. United Airlines Holdings Inc UAL.O has also said it will need to reduce its management and administrative staff by about 30% once U.S. government payroll aid expires in the fall.
|
May 27 (Reuters) - American Airlines Group Inc AAL.O must reduce its management and support staff by about 30% as it moves to run a smaller airline due to the coronavirus pandemic, according to a letter to employees made public on Wednesday. United Airlines Holdings Inc UAL.O has also said it will need to reduce its management and administrative staff by about 30% once U.S. government payroll aid expires in the fall. (Reporting by Tracy Rucinski; Editing by Himani Sarkar) ((tracy.rucinski@thomsonreuters.com; 1-312-408-8575; Reuters Messaging: tracy.rucinski.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.
|
May 27 (Reuters) - American Airlines Group Inc AAL.O must reduce its management and support staff by about 30% as it moves to run a smaller airline due to the coronavirus pandemic, according to a letter to employees made public on Wednesday. American will first offer voluntary options to employees and will implement involuntary reductions if there is not enough take-up, Elise Eberwein, executive vice president of people and global engagement said in the letter. (Reporting by Tracy Rucinski; Editing by Himani Sarkar) ((tracy.rucinski@thomsonreuters.com; 1-312-408-8575; Reuters Messaging: tracy.rucinski.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.
|
May 27 (Reuters) - American Airlines Group Inc AAL.O must reduce its management and support staff by about 30% as it moves to run a smaller airline due to the coronavirus pandemic, according to a letter to employees made public on Wednesday. American will first offer voluntary options to employees and will implement involuntary reductions if there is not enough take-up, Elise Eberwein, executive vice president of people and global engagement said in the letter. United Airlines Holdings Inc UAL.O has also said it will need to reduce its management and administrative staff by about 30% once U.S. government payroll aid expires in the fall.
|
5837.0
|
2020-05-27 00:00:00 UTC
|
AAL Crosses Above Average Analyst Target
|
AAL
|
https://www.nasdaq.com/articles/aal-crosses-above-average-analyst-target-2020-05-27
|
nan
|
nan
|
In recent trading, shares of American Airlines Group Inc (Symbol: AAL) have crossed above the average analyst 12-month target price of $10.80, changing hands for $11.14/share. When a stock reaches the target an analyst has set, the analyst logically has two ways to react: downgrade on valuation, or, re-adjust their target price to a higher level. Analyst reaction may also depend on the fundamental business developments that may be responsible for driving the stock price higher — if things are looking up for the company, perhaps it is time for that target price to be raised.
There are 10 different analyst targets contributing to that average for American Airlines Group Inc, but the average is just that — a mathematical average. There are analysts with lower targets than the average, including one looking for a price of $1.00. And then on the other side of the spectrum one analyst has a target as high as $18.00. The standard deviation is $5.553.
But the whole reason to look at the average AAL price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes. And so with AAL crossing above that average target price of $10.80/share, investors in AAL have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $10.80 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table? Below is a table showing the current thinking of the analysts that cover American Airlines Group Inc:
RECENT AAL ANALYST RATINGS BREAKDOWN
» Current 1 Month Ago 2 Month Ago 3 Month Ago
Strong buy ratings: 2 2 4 7
Buy ratings: 0 0 0 1
Hold ratings: 4 5 3 2
Sell ratings: 1 1 1 0
Strong sell ratings: 5 4 3 2
Average rating: 3.58 3.42 2.91 2.08
The average rating presented in the last row of the above table above is from 1 to 5 where 1 is Strong Buy and 5 is Strong Sell. This article used data provided by Zacks Investment Research via Quandl.com. Get the latest Zacks research report on AAL — FREE.
10 ETFs With Most Upside To Analyst Targets »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
In recent trading, shares of American Airlines Group Inc (Symbol: AAL) have crossed above the average analyst 12-month target price of $10.80, changing hands for $11.14/share. And so with AAL crossing above that average target price of $10.80/share, investors in AAL have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $10.80 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table? But the whole reason to look at the average AAL price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes.
|
In recent trading, shares of American Airlines Group Inc (Symbol: AAL) have crossed above the average analyst 12-month target price of $10.80, changing hands for $11.14/share. But the whole reason to look at the average AAL price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes. And so with AAL crossing above that average target price of $10.80/share, investors in AAL have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $10.80 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table?
|
And so with AAL crossing above that average target price of $10.80/share, investors in AAL have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $10.80 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table? In recent trading, shares of American Airlines Group Inc (Symbol: AAL) have crossed above the average analyst 12-month target price of $10.80, changing hands for $11.14/share. But the whole reason to look at the average AAL price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes.
|
In recent trading, shares of American Airlines Group Inc (Symbol: AAL) have crossed above the average analyst 12-month target price of $10.80, changing hands for $11.14/share. But the whole reason to look at the average AAL price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes. And so with AAL crossing above that average target price of $10.80/share, investors in AAL have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $10.80 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table?
|
5838.0
|
2020-05-26 00:00:00 UTC
|
Breakingviews - Corona Capital: NYSE trading floor
|
AAL
|
https://www.nasdaq.com/articles/breakingviews-corona-capital%3A-nyse-trading-floor-2020-05-26
|
nan
|
nan
|
Reuters
Reuters
NEW YORK/LONDON/HONG KONG (Reuters Breakingviews) - Corona Capital is a daily column updated throughout the day by Breakingviews columnists around the world with short, sharp pandemic-related insights.
LATEST
- New York Stock Exchange reopening
FINANCE'S HISTORICAL REENACTMENT VILLAGE. New York Stock Exchange partially reopened its trading floor on Tuesday, having been closed since March 20. The question is why. It’s getting harder to argue the exchange, owned by Intercontinental Exchange, even needs such a thing. Trading didn’t suffer any noticeable glitches while it was closed.
The floor has historical and sentimental value, but its function today is largely marketing. While other trading venues have gone fully online for reasons of efficiency, showing people working quietly on computers doesn’t make good video. Besides, executives still love to ring the bell when their company’s stock debuts.
Having a hundred or so masked employees heading back marks another step in America’s cautious return. But it’s also a test of whether the old habits will really pick back up. With large chunks of the economy being run virtually, the NYSE bell will continue to ring, but there will most probably be fewer people there to hear it. (By Robert Cyran)
DAS POUND OF FLESH. Germany’s $9.9 billion Deutsche Lufthansa rescue provides a blueprint for governments looking to strike a hard bargain in bailout negotiations. The airline’s shares jumped 5% on Tuesday after the government confirmed it would take a 20% stake at 2.56 euros per share, a 72% discount to the listed price. A further 5.7 billion euros will come as so-called “silent participations”, equity-like instruments which carry hefty annual coupons but don’t add to Lufthansa’s debt.
Such tough haggling contrasts with the swifter, go-lightly approach of the U.S. Treasury, which earmarked around $50 billion for carriers like Delta Air Lines and American Airlines soon after the lockdown hit. In addition to giving low-interest loans the Treasury received warrants that convert into shares only when share prices recover. It might make sense to move fast in a pandemic. But by taking a little more time, German taxpayers have emerged the relative winners. (By Christopher Thompson)
BUSINESS INTERRUPTUS. Insurers do their best to cook up policies that limit heavy losses. Yet Axa has become one of the first industry heavyweights to lose a court case over payment of so-called business interruption insurance. The 37 billion euro insurer has to cover two months of lost revenue to a French restaurant. Chief Executive Thomas Buberl reckons the hit can be mitigated as fewer than 10% of Axa’s restaurant customers have similar contracts. But there’s a risk now of greater exposure – and almost certainly of lower returns.
Having already cancelled dividends, French insurers may also be asked to hold more capital reserves to offset legal risk, Moody’s says. They’re unlikely to be alone. Lawmakers in New York and Ohio have introduced bills to force payouts. In the United Kingdom, hundreds of companies have joined forces to sue Hiscox for unpaid claims. Axa may merely have opened the floodgates. (By Aimee Donnellan)
PAY GRADE. Notoriously analogue Hong Kong, where cash and paper-document stamping persist, is getting a digital lift amid the pandemic. HSBC’s PayMe just hit two million users, three years after the UK-based bank introduced its electronic wallet. It claims 70% of the market for settling purchases of everything from surgical masks to hand sanitiser, big drivers of late.
Seeing what friends are buying, Venmo-style, has helped build a user base that’s roughly half millennial. Customers active on HSBC’s Hong Kong mobile banking app surpassed 1.1 million as of March, up nearly 40% from a year earlier.
These are welcome milestones for HSBC as much as Hong Kong. The city’s fintech efforts have been sluggish, with many online-only banking rivals missing target dates set by the Hong Kong Monetary Authority. Stealing a digital march should help gird HSBC for the competition to come. (By Sharon Lam)
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
While other trading venues have gone fully online for reasons of efficiency, showing people working quietly on computers doesn’t make good video. Such tough haggling contrasts with the swifter, go-lightly approach of the U.S. Treasury, which earmarked around $50 billion for carriers like Delta Air Lines and American Airlines soon after the lockdown hit. The city’s fintech efforts have been sluggish, with many online-only banking rivals missing target dates set by the Hong Kong Monetary Authority.
|
- New York Stock Exchange reopening FINANCE'S HISTORICAL REENACTMENT VILLAGE. New York Stock Exchange partially reopened its trading floor on Tuesday, having been closed since March 20. HSBC’s PayMe just hit two million users, three years after the UK-based bank introduced its electronic wallet.
|
New York Stock Exchange partially reopened its trading floor on Tuesday, having been closed since March 20. Yet Axa has become one of the first industry heavyweights to lose a court case over payment of so-called business interruption insurance. Customers active on HSBC’s Hong Kong mobile banking app surpassed 1.1 million as of March, up nearly 40% from a year earlier.
|
- New York Stock Exchange reopening FINANCE'S HISTORICAL REENACTMENT VILLAGE. New York Stock Exchange partially reopened its trading floor on Tuesday, having been closed since March 20. These are welcome milestones for HSBC as much as Hong Kong.
|
5839.0
|
2020-05-26 00:00:00 UTC
|
Breakingviews - Corona Capital: Texas bank merger
|
AAL
|
https://www.nasdaq.com/articles/breakingviews-corona-capital%3A-texas-bank-merger-2020-05-26
|
nan
|
nan
|
Reuters
Reuters
DALLAS/NEW YORK/LONDON/HONG KONG (Reuters Breakingviews) - Corona Capital is a daily column updated throughout the day by Breakingviews columnists around the world with short, sharp pandemic-related insights.
LATEST
- Lone stars again
TEXAS FOLD ’EM. A harmonious agreement to end a deal is about as rare as a merger of equals. But two Texas banks have managed one after the other. On Tuesday Texas Capital Bancshares and Independent Bank mutually agreed to call off their merger because of the impact of the coronavirus. It would have created a $2.8 billion company based on Friday’s market capitalizations. Texas Capital – which has a large exposure to the oil-and-gas business, Reuters reports – was meant to own more than half of the combined company while Independent Bank’s chief was going to be the overlord.
Stock deals have a better chance of an amicable break than ones financed with cash. And in this instance, there’s no break fee, either. But the decision isn’t pain-free. Texas Capital Chief Executive Keith Cargill is stepping down, and the bank’s shares shed roughly 5% of their value. There’s also a winner, though: Independent Bank’s stock, which jumped nearly 17%. (By Lauren Silva Laughlin)
FINANCE'S HISTORICAL REENACTMENT VILLAGE. New York Stock Exchange partially reopened its trading floor on Tuesday, having been closed since March 20. The question is why. It’s getting harder to argue the exchange, owned by Intercontinental Exchange, even needs such a thing. Trading didn’t suffer any noticeable glitches while it was closed.
The floor has historical and sentimental value, but its function today is largely marketing. While other trading venues have gone fully online for reasons of efficiency, showing people working quietly on computers doesn’t make good video. Besides, executives still love to ring the bell when their company’s stock debuts.
Having a hundred or so masked employees heading back marks another step in America’s cautious return. But it’s also a test of whether the old habits will really pick back up. With large chunks of the economy being run virtually, the NYSE bell will continue to ring, but there will most probably be fewer people there to hear it. (By Robert Cyran)
DAS POUND OF FLESH. Germany’s $9.9 billion Deutsche Lufthansa rescue provides a blueprint for governments looking to strike a hard bargain in bailout negotiations. The airline’s shares jumped 5% on Tuesday after the government confirmed it would take a 20% stake at 2.56 euros per share, a 72% discount to the listed price. A further 5.7 billion euros will come as so-called “silent participations”, equity-like instruments which carry hefty annual coupons but don’t add to Lufthansa’s debt.
Such tough haggling contrasts with the swifter, go-lightly approach of the U.S. Treasury, which earmarked around $50 billion for carriers like Delta Air Lines and American Airlines soon after the lockdown hit. In addition to giving low-interest loans the Treasury received warrants that convert into shares only when share prices recover. It might make sense to move fast in a pandemic. But by taking a little more time, German taxpayers have emerged the relative winners. (By Christopher Thompson)
BUSINESS INTERRUPTUS. Insurers do their best to cook up policies that limit heavy losses. Yet Axa has become one of the first industry heavyweights to lose a court case over payment of so-called business interruption insurance. The 37 billion euro insurer has to cover two months of lost revenue to a French restaurant. Chief Executive Thomas Buberl reckons the hit can be mitigated as fewer than 10% of Axa’s restaurant customers have similar contracts. But there’s a risk now of greater exposure – and almost certainly of lower returns.
Having already cancelled dividends, French insurers may also be asked to hold more capital reserves to offset legal risk, Moody’s says. They’re unlikely to be alone. Lawmakers in New York and Ohio have introduced bills to force payouts. In the United Kingdom, hundreds of companies have joined forces to sue Hiscox for unpaid claims. Axa may merely have opened the floodgates. (By Aimee Donnellan)
PAY GRADE. Notoriously analogue Hong Kong, where cash and paper-document stamping persist, is getting a digital lift amid the pandemic. HSBC’s, PayMe just hit two million users, three years after the UK-based bank introduced its electronic wallet. It claims 70% of the market for settling purchases of everything from surgical masks to hand sanitiser, big drivers of late.
Seeing what friends are buying, Venmo-style, has helped build a user base that’s roughly half millennial. Customers active on HSBC’s Hong Kong mobile banking app surpassed 1.1 million as of March, up nearly 40% from a year earlier.
These are welcome milestones for HSBC as much as Hong Kong. The city’s fintech efforts have been sluggish, with many online-only banking rivals missing target dates set by the Hong Kong Monetary Authority. Stealing a digital march should help gird HSBC for the competition to come. (By Sharon Lam)
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Texas Capital – which has a large exposure to the oil-and-gas business, Reuters reports – was meant to own more than half of the combined company while Independent Bank’s chief was going to be the overlord. While other trading venues have gone fully online for reasons of efficiency, showing people working quietly on computers doesn’t make good video. Such tough haggling contrasts with the swifter, go-lightly approach of the U.S. Treasury, which earmarked around $50 billion for carriers like Delta Air Lines and American Airlines soon after the lockdown hit.
|
On Tuesday Texas Capital Bancshares and Independent Bank mutually agreed to call off their merger because of the impact of the coronavirus. Texas Capital Chief Executive Keith Cargill is stepping down, and the bank’s shares shed roughly 5% of their value. New York Stock Exchange partially reopened its trading floor on Tuesday, having been closed since March 20.
|
Texas Capital – which has a large exposure to the oil-and-gas business, Reuters reports – was meant to own more than half of the combined company while Independent Bank’s chief was going to be the overlord. Texas Capital Chief Executive Keith Cargill is stepping down, and the bank’s shares shed roughly 5% of their value. Customers active on HSBC’s Hong Kong mobile banking app surpassed 1.1 million as of March, up nearly 40% from a year earlier.
|
Stock deals have a better chance of an amicable break than ones financed with cash. There’s also a winner, though: Independent Bank’s stock, which jumped nearly 17%. New York Stock Exchange partially reopened its trading floor on Tuesday, having been closed since March 20.
|
5840.0
|
2020-05-26 00:00:00 UTC
|
GLOBAL MARKET-Stocks rally, S&P 500 crosses 3,000 barrier; oil gains
|
AAL
|
https://www.nasdaq.com/articles/global-market-stocks-rally-sp-500-crosses-3000-barrier-oil-gains-2020-05-26
|
nan
|
nan
|
By Herbert Lash and Marc Jones
NEW YORK/LONDON, May 26 (Reuters) - Global equities and oil rose on Tuesday as China's promise of more stimulus and prospects of a world economic recovery cheered investors, who set aside concerns about tense rhetoric between Washington and Beijing.
The euro got a boost from a weaker dollar as rising optimism about the easing of coronavirus pandemic lockdowns supported riskier currencies and sent safe-haven gold lower.
Crude prices rose on growing confidence that producers are following through on commitments to cut supplies and as fuel demand has picked up.
U.S. stocks pared gains after President Donald Trump's economic adviser, Larry Kudlow, said China was making "a big mistake" with planned national security legislation on Hong Kong and pledged Washington would pay expenses of U.S. firms that wanted to shift operations from the city or China.
White House spokeswoman Kayleigh McEnany said Trump finds it hard to see "how Hong Kong can remain a financial hub if China takes over."
MSCI's gauge of stock performance in 49 countries rose more than 2% at one point, as did its emerging markets index. The S&P 500 climbed past the 3,000 mark for the first time since March 5, up 37% from March lows but still off about 11% from its all-time high in February, and it closed under 3,000.
Europe was powered by a 6.9% surge in travel and leisure stocks .SXTP. On Wall Street, shares of American Airlines AAL.O and United Airlines Holdings UAL.O rose more than 15% and U.S.-listed cruise ship operators jumped about the same.
The major boost for investor sentiment is the reopening of the U.S. and global economies, said Jason Benowitz, senior portfolio manager at the Roosevelt Investment Group Inc in New York.
"Reports of economic activity, while still terrible compared to three months ago, have begun to get less bad as compared to the prior month," Benowitz said.
Spain said quarantine-free tourism would resume next month and Germany edged toward a 9 billion-euro bailout of airline Lufthansa.
Spain's Melia Hotels International SA MEL.MC rose 13.6% and France's Accor SA ACCP.PA 11.3%, the biggest percentage gainers on the Spanish and French bourses. Norwegian Cruise Line Holdings Ltd NCLH.K and Royal Caribbean Cruises Ltd RCL.N were among the top four percentage gainers on the S&P 500.
But the travel industry remained vulnerable. Latin America's largest airline, LATAM Airlines Group LTM.SN, and its affiliates in Chile, Peru, Colombia and Ecuador filed for bankruptcy protection in the United States.
MSCI's all-country world index <.MIWD00000PUS gained 1.6%, and the pan-European STOXX 600 index .STOXX 1.1%.
The Dow Jones Industrial Average .DJI rose 529.95 points, or 2.17%, to 24,995.11. The S&P 500 .SPX gained 36.32 points, or 1.23%, to 2,991.77 and the Nasdaq Composite .IXIC added 15.63 points, or 0.17%, to 9,340.22.
Crude prices were buoyed by Russia's saying its oil output had dropped close to its target of 8.5 million barrels per day for May and June under the supply deal reached by major producers.
Brent futures LCOc1 rose 64 cents to settle at $36.17 a barrel, while U.S. crude CLc1 settled up $1.10 at $34.35.
China's central bank said it would keep pushing to lower interest rates on loans, helping offset tensions between Beijing and Washington over trade, the coronavirus and Hong Kong.
MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS advanced 1.7% overnight, with South Korea .KS11 up 1.75% and Chinese blue chips .CSI300 1.1% higher.
The dollar index =USD fell 0.774%, with the euro EUR= up 0.81% to $1.0987. The Japanese yen JPY= strengthened 0.20% versus the greenback at 107.50 per dollar.
Benchmark U.S. 10-year Treasury notes US10YT=RR rose 3.4 basis points to yield 0.6932%.
U.S. gold futures GCv1 settled down 1.7% at $1,705.60 an ounce. Spot gold XAU= dropped 1.1% to $1,711.12.
Asia stock marketshttps://tmsnrt.rs/2zpUAr4
Asia-Pacific valuationshttps://tmsnrt.rs/2Dr2BQA
(Reporting by Herbert Lash; additional reporting by Medha Singh; editing by Dan Grebler, Leslie Adler and David Gregorio)
((herb.lash@thomsonreuters.com; 1-646-223-6019; Reuters Messaging: herb.lash.reuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
On Wall Street, shares of American Airlines AAL.O and United Airlines Holdings UAL.O rose more than 15% and U.S.-listed cruise ship operators jumped about the same. By Herbert Lash and Marc Jones NEW YORK/LONDON, May 26 (Reuters) - Global equities and oil rose on Tuesday as China's promise of more stimulus and prospects of a world economic recovery cheered investors, who set aside concerns about tense rhetoric between Washington and Beijing. Crude prices were buoyed by Russia's saying its oil output had dropped close to its target of 8.5 million barrels per day for May and June under the supply deal reached by major producers.
|
On Wall Street, shares of American Airlines AAL.O and United Airlines Holdings UAL.O rose more than 15% and U.S.-listed cruise ship operators jumped about the same. By Herbert Lash and Marc Jones NEW YORK/LONDON, May 26 (Reuters) - Global equities and oil rose on Tuesday as China's promise of more stimulus and prospects of a world economic recovery cheered investors, who set aside concerns about tense rhetoric between Washington and Beijing. Asia stock marketshttps://tmsnrt.rs/2zpUAr4 Asia-Pacific valuationshttps://tmsnrt.rs/2Dr2BQA (Reporting by Herbert Lash; additional reporting by Medha Singh; editing by Dan Grebler, Leslie Adler and David Gregorio) ((herb.lash@thomsonreuters.com; 1-646-223-6019; Reuters Messaging: herb.lash.reuters.com@reuters.net)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
On Wall Street, shares of American Airlines AAL.O and United Airlines Holdings UAL.O rose more than 15% and U.S.-listed cruise ship operators jumped about the same. By Herbert Lash and Marc Jones NEW YORK/LONDON, May 26 (Reuters) - Global equities and oil rose on Tuesday as China's promise of more stimulus and prospects of a world economic recovery cheered investors, who set aside concerns about tense rhetoric between Washington and Beijing. U.S. stocks pared gains after President Donald Trump's economic adviser, Larry Kudlow, said China was making "a big mistake" with planned national security legislation on Hong Kong and pledged Washington would pay expenses of U.S. firms that wanted to shift operations from the city or China.
|
On Wall Street, shares of American Airlines AAL.O and United Airlines Holdings UAL.O rose more than 15% and U.S.-listed cruise ship operators jumped about the same. The Dow Jones Industrial Average .DJI rose 529.95 points, or 2.17%, to 24,995.11. China's central bank said it would keep pushing to lower interest rates on loans, helping offset tensions between Beijing and Washington over trade, the coronavirus and Hong Kong.
|
5841.0
|
2020-05-26 00:00:00 UTC
|
BUZZ-U.S. STOCKS ON THE MOVE-IZEA Worldwide, Diffusion Pharma, DouYu International
|
AAL
|
https://www.nasdaq.com/articles/buzz-u.s.-stocks-on-the-move-izea-worldwide-diffusion-pharma-douyu-international-2020-05
|
nan
|
nan
|
Eikon search string for individual stock moves: STXBZ
The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi
The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh
U.S. stocks jumped and the S&P 500 crossed 3,000 points on Tuesday as optimism about a potential coronavirus vaccine and a revival in business activity helped investors overlook simmering Sino-U.S. tensions. .N
At 12:59 ET, the Dow Jones Industrial Average .DJI was up 2.67% at 25,119.36. The S&P 500 .SPX was up 1.89% at 3,011.19 and the Nasdaq Composite .IXIC was up 1.00% at 9,417.757. The top three S&P 500 .PG.INX percentage gainers: ** Alliance Data Systems Corp ADS.N, up 17.5% ** Norwegian Cruise Line Holdings Ltd NCLH.N, up 15.1% ** United Airlines Holdings Inc UAL.O, up 14.3% The top three S&P 500 .PL.INX percentage losers: ** Dexcom Inc DXCM.O, down 5.6% ** Take-Two Interactive Software Inc TTWO.O, down 5.2% ** Newmont Corp NEM.N, down 4.8% The top three NYSE .PG.N percentage gainers: ** Fly Leasing Ltd FLY.N, up 33.9% ** Emerald Holding Inc EEX.N, up 28.6% ** Amplify ETF Tr/Seymour Cannabis ETF CNBS.N, up 26.1% The top three NYSE .PL.N percentage losers: ** Direxion Daily S&P 500 High Beta Bear 3X Shares HIBS.N, down 18.6% ** ProShares UltraShort MSCI Brazil Capped BZQ.N, down 15.5% ** Can Fite Biofarma Ltd CANF.N, down 15.3% The top three Nasdaq .PG.O percentage gainers: ** MMtec Inc MTC.O, up 84.5% ** Luckin Coffee Inc LK.O, up 52.2% ** Argenx SE ARGX.O, up 36.6% The top three Nasdaq .PL.O percentage losers: ** Wins Finance Holdings Inc WINS.O, down 31.4% ** Qualigen Therapeutics Inc QLGN.O, down 29.5% ** Medigus Ltd MDGS.O, down 16.2% ** IZEA Worldwide Inc IZEA.O: up 27.4%
BUZZ-Surges on strong sales, marketing service deal ** Cellectar Bioscience Inc CLRB.O: up 4.2%
BUZZ-Rises on FDA fast-track tag for cancer therapy ** Diffusion Pharmaceutical Inc DFFN.O: up 8.7%
BUZZ-Up on FDA's response to proposed COVID-19 treatment trial plan ** Goldman Sachs Group Inc GS.N: up 7.4% ** JPMorgan Chase & Co JPM.N: up 7.2% ** Citigroup Inc C.N: up 9.0% ** Wells Fargo & Co WFC.N: up 7.8% ** Bank of America Corp BAC.N: up 7.0% ** Morgan Stanley MS.N: up 7.0%
BUZZ-U.S. banks: Rise as yields edge higher ** Sky Solar Holdings Ltd SKYS.O: up 17.7%
BUZZ-Surges on buyout proposal ** DouYu International Holdings Ltd DOYU.O: up 20.0%
BUZZ-Rises on quarterly revenue beat ** Kala Pharmaceuticals Inc KALA.O: up 0.9%
BUZZ-Up on FDA nod to resubmitted application for eye drug ** Sorrento Therapeutics Inc SRNE.O: up 3.9%
BUZZ-Rises on FDA nod for clinical trial of protein deposition disorder treatment ** Johnson & Johnson JNJ.N: up 0.9%
BUZZ-Bowel syndrome drug cost surpasses budget impact threshold- ICER ** Adapthealth Corp AHCO.O: up 5.1%
BUZZ-Gains on agreement to acquire diabetes device supplier ** 1Life Healthcare Inc ONEM.O: down 9.7%
BUZZ-Falls on planned $250 mln convertible offering ** Marvell Technology Group Ltd MRVL.O: up 3.3%
BUZZ-Hits over 14-yr high as Susquehanna lifts PT on 5G boost ** AutoZone Inc AZO.N: up 1.1%
BUZZ-Rises as same-store sales improve ** Hibbett Sports Inc HIBB.O: up 2.6%
BUZZ-Rises as retailer says current-quarter sales are "robust" ** Anaplan Inc PLAN.N: down 6.5%
BUZZ-Falls on tepid Q2 revenue forecast ** Novavax Inc NVAX.O: up 10.0% BUZZ-Surges after starting clinical trial of COVID-19 vaccine candidate ** Gilead Sciences Inc GILD.O: up 1.1% BUZZ-SunTrust upgrades on remdesivir sales potential ** Hewlett Packard Enterprise Co HPE.N: up 3.1% BUZZ-Rises as JPM upgrades on IT spending recovery ** Tuesday Morning Corp TUES.O: down 7.0% BUZZ-Plunges on report of bankruptcy filing preparations ** Merck & Co Inc MRK.N: up 2.3% BUZZ- Rises on plans to develop COVID-19 vaccine, antiviral drug ** Chevron Corp CVX.N: up 3.2% ** Exxon Mobil Corp XOM.N: up 2.9% ** Apache Corp APA.N: up 3.9% ** WPX Energy Inc WPX.N, RIC: up 1.3% ** Callon Petroleum Co CPE.N: up 1.4% ** Occidental Petroleum Corp OXY.N: up 1.1%
** Schlumberger NV SLB.N: up 4.6% ** Halliburton Co HAL.N: up 2.6% ** TechnipFMC FTI.N: up 6.0% ** Baker Hughes Co BKR.N: up 4.7% BUZZ-Oil and gas stocks gain as confidence in supply cut grows ** Alibaba Group Holdings Inc BABA.N: up 1.8% BUZZ-Street View: Alibaba's robust growth remains very well intact ** American Airlines Groups Inc AAL.O: up 13.8% ** United Airlines Holdings Inc UAL.O: up 14.3% ** Expedia Group Inc EXPE.O: up 6.9% ** Tripadvisor Inc TRIP.O: up 14.0% ** Marriott International Inc MAR.O: up 4.7% BUZZ-U.S. travel firms fly on hopes of easing travel restriction in Europe
The 11 major S&P 500 sectors:
Communication Services
.SPLRCL
up 1.34%
Consumer Discretionary
.SPLRCD
up 1.69%
Consumer Staples
.SPLRCS
up 1.02%
Energy
.SPNY
up 2.95%
Financial
.SPSY
up 5.12%
Health
.SPXHC
up 0.71%
Industrial
.SPLRCI
up 4.47%
Information Technology
.SPLRCT
up 0.78%
Materials
.SPLRCM
up 2.94%
Real Estate
.SPLRCR
up 2.99%
Utilities
.SPLRCU
up 1.90%
(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.
|
The top three S&P 500 .PG.INX percentage gainers: ** Alliance Data Systems Corp ADS.N, up 17.5% ** Norwegian Cruise Line Holdings Ltd NCLH.N, up 15.1% ** United Airlines Holdings Inc UAL.O, up 14.3% The top three S&P 500 .PL.INX percentage losers: ** Dexcom Inc DXCM.O, down 5.6% ** Take-Two Interactive Software Inc TTWO.O, down 5.2% ** Newmont Corp NEM.N, down 4.8% The top three NYSE .PG.N percentage gainers: ** Fly Leasing Ltd FLY.N, up 33.9% ** Emerald Holding Inc EEX.N, up 28.6% ** Amplify ETF Tr/Seymour Cannabis ETF CNBS.N, up 26.1% The top three NYSE .PL.N percentage losers: ** Direxion Daily S&P 500 High Beta Bear 3X Shares HIBS.N, down 18.6% ** ProShares UltraShort MSCI Brazil Capped BZQ.N, down 15.5% ** Can Fite Biofarma Ltd CANF.N, down 15.3% The top three Nasdaq .PG.O percentage gainers: ** MMtec Inc MTC.O, up 84.5% ** Luckin Coffee Inc LK.O, up 52.2% ** Argenx SE ARGX.O, up 36.6% The top three Nasdaq .PL.O percentage losers: ** Wins Finance Holdings Inc WINS.O, down 31.4% ** Qualigen Therapeutics Inc QLGN.O, down 29.5% ** Medigus Ltd MDGS.O, down 16.2% ** IZEA Worldwide Inc IZEA.O: up 27.4% BUZZ-Surges on strong sales, marketing service deal ** Cellectar Bioscience Inc CLRB.O: up 4.2% BUZZ-Rises on FDA fast-track tag for cancer therapy ** Diffusion Pharmaceutical Inc DFFN.O: up 8.7% BUZZ-Up on FDA's response to proposed COVID-19 treatment trial plan ** Goldman Sachs Group Inc GS.N: up 7.4% ** JPMorgan Chase & Co JPM.N: up 7.2% ** Citigroup Inc C.N: up 9.0% ** Wells Fargo & Co WFC.N: up 7.8% ** Bank of America Corp BAC.N: up 7.0% ** Morgan Stanley MS.N: up 7.0% BUZZ-U.S. banks: Rise as yields edge higher ** Sky Solar Holdings Ltd SKYS.O: up 17.7% BUZZ-Surges on buyout proposal ** DouYu International Holdings Ltd DOYU.O: up 20.0% BUZZ-Rises on quarterly revenue beat ** Kala Pharmaceuticals Inc KALA.O: up 0.9% BUZZ-Up on FDA nod to resubmitted application for eye drug ** Sorrento Therapeutics Inc SRNE.O: up 3.9% BUZZ-Rises on FDA nod for clinical trial of protein deposition disorder treatment ** Johnson & Johnson JNJ.N: up 0.9% BUZZ-Bowel syndrome drug cost surpasses budget impact threshold- ICER ** Adapthealth Corp AHCO.O: up 5.1% BUZZ-Gains on agreement to acquire diabetes device supplier ** 1Life Healthcare Inc ONEM.O: down 9.7% BUZZ-Falls on planned $250 mln convertible offering ** Marvell Technology Group Ltd MRVL.O: up 3.3% BUZZ-Hits over 14-yr high as Susquehanna lifts PT on 5G boost ** AutoZone Inc AZO.N: up 1.1% BUZZ-Rises as same-store sales improve ** Hibbett Sports Inc HIBB.O: up 2.6% BUZZ-Rises as retailer says current-quarter sales are "robust" ** Anaplan Inc PLAN.N: down 6.5% BUZZ-Falls on tepid Q2 revenue forecast ** Novavax Inc NVAX.O: up 10.0% BUZZ-Surges after starting clinical trial of COVID-19 vaccine candidate ** Gilead Sciences Inc GILD.O: up 1.1% BUZZ-SunTrust upgrades on remdesivir sales potential ** Hewlett Packard Enterprise Co HPE.N: up 3.1% BUZZ-Rises as JPM upgrades on IT spending recovery ** Tuesday Morning Corp TUES.O: down 7.0% BUZZ-Plunges on report of bankruptcy filing preparations ** Merck & Co Inc MRK.N: up 2.3% BUZZ- Rises on plans to develop COVID-19 vaccine, antiviral drug ** Chevron Corp CVX.N: up 3.2% ** Exxon Mobil Corp XOM.N: up 2.9% ** Apache Corp APA.N: up 3.9% ** WPX Energy Inc WPX.N, RIC: up 1.3% ** Callon Petroleum Co CPE.N: up 1.4% ** Occidental Petroleum Corp OXY.N: up 1.1% ** Schlumberger NV SLB.N: up 4.6% ** Halliburton Co HAL.N: up 2.6% ** TechnipFMC FTI.N: up 6.0% ** Baker Hughes Co BKR.N: up 4.7% BUZZ-Oil and gas stocks gain as confidence in supply cut grows ** Alibaba Group Holdings Inc BABA.N: up 1.8% BUZZ-Street View: Alibaba's robust growth remains very well intact ** American Airlines Groups Inc AAL.O: up 13.8% ** United Airlines Holdings Inc UAL.O: up 14.3% ** Expedia Group Inc EXPE.O: up 6.9% ** Tripadvisor Inc TRIP.O: up 14.0% ** Marriott International Inc MAR.O: up 4.7% BUZZ-U.S. travel firms fly on hopes of easing travel restriction in Europe The 11 major S&P 500 sectors: Communication Services Eikon search string for individual stock moves: STXBZ The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh U.S. stocks jumped and the S&P 500 crossed 3,000 points on Tuesday as optimism about a potential coronavirus vaccine and a revival in business activity helped investors overlook simmering Sino-U.S. tensions. up 1.90% (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.
|
The top three S&P 500 .PG.INX percentage gainers: ** Alliance Data Systems Corp ADS.N, up 17.5% ** Norwegian Cruise Line Holdings Ltd NCLH.N, up 15.1% ** United Airlines Holdings Inc UAL.O, up 14.3% The top three S&P 500 .PL.INX percentage losers: ** Dexcom Inc DXCM.O, down 5.6% ** Take-Two Interactive Software Inc TTWO.O, down 5.2% ** Newmont Corp NEM.N, down 4.8% The top three NYSE .PG.N percentage gainers: ** Fly Leasing Ltd FLY.N, up 33.9% ** Emerald Holding Inc EEX.N, up 28.6% ** Amplify ETF Tr/Seymour Cannabis ETF CNBS.N, up 26.1% The top three NYSE .PL.N percentage losers: ** Direxion Daily S&P 500 High Beta Bear 3X Shares HIBS.N, down 18.6% ** ProShares UltraShort MSCI Brazil Capped BZQ.N, down 15.5% ** Can Fite Biofarma Ltd CANF.N, down 15.3% The top three Nasdaq .PG.O percentage gainers: ** MMtec Inc MTC.O, up 84.5% ** Luckin Coffee Inc LK.O, up 52.2% ** Argenx SE ARGX.O, up 36.6% The top three Nasdaq .PL.O percentage losers: ** Wins Finance Holdings Inc WINS.O, down 31.4% ** Qualigen Therapeutics Inc QLGN.O, down 29.5% ** Medigus Ltd MDGS.O, down 16.2% ** IZEA Worldwide Inc IZEA.O: up 27.4% BUZZ-Surges on strong sales, marketing service deal ** Cellectar Bioscience Inc CLRB.O: up 4.2% BUZZ-Rises on FDA fast-track tag for cancer therapy ** Diffusion Pharmaceutical Inc DFFN.O: up 8.7% BUZZ-Up on FDA's response to proposed COVID-19 treatment trial plan ** Goldman Sachs Group Inc GS.N: up 7.4% ** JPMorgan Chase & Co JPM.N: up 7.2% ** Citigroup Inc C.N: up 9.0% ** Wells Fargo & Co WFC.N: up 7.8% ** Bank of America Corp BAC.N: up 7.0% ** Morgan Stanley MS.N: up 7.0% BUZZ-U.S. banks: Rise as yields edge higher ** Sky Solar Holdings Ltd SKYS.O: up 17.7% BUZZ-Surges on buyout proposal ** DouYu International Holdings Ltd DOYU.O: up 20.0% BUZZ-Rises on quarterly revenue beat ** Kala Pharmaceuticals Inc KALA.O: up 0.9% BUZZ-Up on FDA nod to resubmitted application for eye drug ** Sorrento Therapeutics Inc SRNE.O: up 3.9% BUZZ-Rises on FDA nod for clinical trial of protein deposition disorder treatment ** Johnson & Johnson JNJ.N: up 0.9% BUZZ-Bowel syndrome drug cost surpasses budget impact threshold- ICER ** Adapthealth Corp AHCO.O: up 5.1% BUZZ-Gains on agreement to acquire diabetes device supplier ** 1Life Healthcare Inc ONEM.O: down 9.7% BUZZ-Falls on planned $250 mln convertible offering ** Marvell Technology Group Ltd MRVL.O: up 3.3% BUZZ-Hits over 14-yr high as Susquehanna lifts PT on 5G boost ** AutoZone Inc AZO.N: up 1.1% BUZZ-Rises as same-store sales improve ** Hibbett Sports Inc HIBB.O: up 2.6% BUZZ-Rises as retailer says current-quarter sales are "robust" ** Anaplan Inc PLAN.N: down 6.5% BUZZ-Falls on tepid Q2 revenue forecast ** Novavax Inc NVAX.O: up 10.0% BUZZ-Surges after starting clinical trial of COVID-19 vaccine candidate ** Gilead Sciences Inc GILD.O: up 1.1% BUZZ-SunTrust upgrades on remdesivir sales potential ** Hewlett Packard Enterprise Co HPE.N: up 3.1% BUZZ-Rises as JPM upgrades on IT spending recovery ** Tuesday Morning Corp TUES.O: down 7.0% BUZZ-Plunges on report of bankruptcy filing preparations ** Merck & Co Inc MRK.N: up 2.3% BUZZ- Rises on plans to develop COVID-19 vaccine, antiviral drug ** Chevron Corp CVX.N: up 3.2% ** Exxon Mobil Corp XOM.N: up 2.9% ** Apache Corp APA.N: up 3.9% ** WPX Energy Inc WPX.N, RIC: up 1.3% ** Callon Petroleum Co CPE.N: up 1.4% ** Occidental Petroleum Corp OXY.N: up 1.1% ** Schlumberger NV SLB.N: up 4.6% ** Halliburton Co HAL.N: up 2.6% ** TechnipFMC FTI.N: up 6.0% ** Baker Hughes Co BKR.N: up 4.7% BUZZ-Oil and gas stocks gain as confidence in supply cut grows ** Alibaba Group Holdings Inc BABA.N: up 1.8% BUZZ-Street View: Alibaba's robust growth remains very well intact ** American Airlines Groups Inc AAL.O: up 13.8% ** United Airlines Holdings Inc UAL.O: up 14.3% ** Expedia Group Inc EXPE.O: up 6.9% ** Tripadvisor Inc TRIP.O: up 14.0% ** Marriott International Inc MAR.O: up 4.7% BUZZ-U.S. travel firms fly on hopes of easing travel restriction in Europe The 11 major S&P 500 sectors: Communication Services Eikon search string for individual stock moves: STXBZ The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh U.S. stocks jumped and the S&P 500 crossed 3,000 points on Tuesday as optimism about a potential coronavirus vaccine and a revival in business activity helped investors overlook simmering Sino-U.S. tensions. up 1.90% (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.
|
The top three S&P 500 .PG.INX percentage gainers: ** Alliance Data Systems Corp ADS.N, up 17.5% ** Norwegian Cruise Line Holdings Ltd NCLH.N, up 15.1% ** United Airlines Holdings Inc UAL.O, up 14.3% The top three S&P 500 .PL.INX percentage losers: ** Dexcom Inc DXCM.O, down 5.6% ** Take-Two Interactive Software Inc TTWO.O, down 5.2% ** Newmont Corp NEM.N, down 4.8% The top three NYSE .PG.N percentage gainers: ** Fly Leasing Ltd FLY.N, up 33.9% ** Emerald Holding Inc EEX.N, up 28.6% ** Amplify ETF Tr/Seymour Cannabis ETF CNBS.N, up 26.1% The top three NYSE .PL.N percentage losers: ** Direxion Daily S&P 500 High Beta Bear 3X Shares HIBS.N, down 18.6% ** ProShares UltraShort MSCI Brazil Capped BZQ.N, down 15.5% ** Can Fite Biofarma Ltd CANF.N, down 15.3% The top three Nasdaq .PG.O percentage gainers: ** MMtec Inc MTC.O, up 84.5% ** Luckin Coffee Inc LK.O, up 52.2% ** Argenx SE ARGX.O, up 36.6% The top three Nasdaq .PL.O percentage losers: ** Wins Finance Holdings Inc WINS.O, down 31.4% ** Qualigen Therapeutics Inc QLGN.O, down 29.5% ** Medigus Ltd MDGS.O, down 16.2% ** IZEA Worldwide Inc IZEA.O: up 27.4% BUZZ-Surges on strong sales, marketing service deal ** Cellectar Bioscience Inc CLRB.O: up 4.2% BUZZ-Rises on FDA fast-track tag for cancer therapy ** Diffusion Pharmaceutical Inc DFFN.O: up 8.7% BUZZ-Up on FDA's response to proposed COVID-19 treatment trial plan ** Goldman Sachs Group Inc GS.N: up 7.4% ** JPMorgan Chase & Co JPM.N: up 7.2% ** Citigroup Inc C.N: up 9.0% ** Wells Fargo & Co WFC.N: up 7.8% ** Bank of America Corp BAC.N: up 7.0% ** Morgan Stanley MS.N: up 7.0% BUZZ-U.S. banks: Rise as yields edge higher ** Sky Solar Holdings Ltd SKYS.O: up 17.7% BUZZ-Surges on buyout proposal ** DouYu International Holdings Ltd DOYU.O: up 20.0% BUZZ-Rises on quarterly revenue beat ** Kala Pharmaceuticals Inc KALA.O: up 0.9% BUZZ-Up on FDA nod to resubmitted application for eye drug ** Sorrento Therapeutics Inc SRNE.O: up 3.9% BUZZ-Rises on FDA nod for clinical trial of protein deposition disorder treatment ** Johnson & Johnson JNJ.N: up 0.9% BUZZ-Bowel syndrome drug cost surpasses budget impact threshold- ICER ** Adapthealth Corp AHCO.O: up 5.1% BUZZ-Gains on agreement to acquire diabetes device supplier ** 1Life Healthcare Inc ONEM.O: down 9.7% BUZZ-Falls on planned $250 mln convertible offering ** Marvell Technology Group Ltd MRVL.O: up 3.3% BUZZ-Hits over 14-yr high as Susquehanna lifts PT on 5G boost ** AutoZone Inc AZO.N: up 1.1% BUZZ-Rises as same-store sales improve ** Hibbett Sports Inc HIBB.O: up 2.6% BUZZ-Rises as retailer says current-quarter sales are "robust" ** Anaplan Inc PLAN.N: down 6.5% BUZZ-Falls on tepid Q2 revenue forecast ** Novavax Inc NVAX.O: up 10.0% BUZZ-Surges after starting clinical trial of COVID-19 vaccine candidate ** Gilead Sciences Inc GILD.O: up 1.1% BUZZ-SunTrust upgrades on remdesivir sales potential ** Hewlett Packard Enterprise Co HPE.N: up 3.1% BUZZ-Rises as JPM upgrades on IT spending recovery ** Tuesday Morning Corp TUES.O: down 7.0% BUZZ-Plunges on report of bankruptcy filing preparations ** Merck & Co Inc MRK.N: up 2.3% BUZZ- Rises on plans to develop COVID-19 vaccine, antiviral drug ** Chevron Corp CVX.N: up 3.2% ** Exxon Mobil Corp XOM.N: up 2.9% ** Apache Corp APA.N: up 3.9% ** WPX Energy Inc WPX.N, RIC: up 1.3% ** Callon Petroleum Co CPE.N: up 1.4% ** Occidental Petroleum Corp OXY.N: up 1.1% ** Schlumberger NV SLB.N: up 4.6% ** Halliburton Co HAL.N: up 2.6% ** TechnipFMC FTI.N: up 6.0% ** Baker Hughes Co BKR.N: up 4.7% BUZZ-Oil and gas stocks gain as confidence in supply cut grows ** Alibaba Group Holdings Inc BABA.N: up 1.8% BUZZ-Street View: Alibaba's robust growth remains very well intact ** American Airlines Groups Inc AAL.O: up 13.8% ** United Airlines Holdings Inc UAL.O: up 14.3% ** Expedia Group Inc EXPE.O: up 6.9% ** Tripadvisor Inc TRIP.O: up 14.0% ** Marriott International Inc MAR.O: up 4.7% BUZZ-U.S. travel firms fly on hopes of easing travel restriction in Europe The 11 major S&P 500 sectors: Communication Services .N At 12:59 ET, the Dow Jones Industrial Average .DJI was up 2.67% at 25,119.36. up 1.34% Consumer Discretionary
|
The top three S&P 500 .PG.INX percentage gainers: ** Alliance Data Systems Corp ADS.N, up 17.5% ** Norwegian Cruise Line Holdings Ltd NCLH.N, up 15.1% ** United Airlines Holdings Inc UAL.O, up 14.3% The top three S&P 500 .PL.INX percentage losers: ** Dexcom Inc DXCM.O, down 5.6% ** Take-Two Interactive Software Inc TTWO.O, down 5.2% ** Newmont Corp NEM.N, down 4.8% The top three NYSE .PG.N percentage gainers: ** Fly Leasing Ltd FLY.N, up 33.9% ** Emerald Holding Inc EEX.N, up 28.6% ** Amplify ETF Tr/Seymour Cannabis ETF CNBS.N, up 26.1% The top three NYSE .PL.N percentage losers: ** Direxion Daily S&P 500 High Beta Bear 3X Shares HIBS.N, down 18.6% ** ProShares UltraShort MSCI Brazil Capped BZQ.N, down 15.5% ** Can Fite Biofarma Ltd CANF.N, down 15.3% The top three Nasdaq .PG.O percentage gainers: ** MMtec Inc MTC.O, up 84.5% ** Luckin Coffee Inc LK.O, up 52.2% ** Argenx SE ARGX.O, up 36.6% The top three Nasdaq .PL.O percentage losers: ** Wins Finance Holdings Inc WINS.O, down 31.4% ** Qualigen Therapeutics Inc QLGN.O, down 29.5% ** Medigus Ltd MDGS.O, down 16.2% ** IZEA Worldwide Inc IZEA.O: up 27.4% BUZZ-Surges on strong sales, marketing service deal ** Cellectar Bioscience Inc CLRB.O: up 4.2% BUZZ-Rises on FDA fast-track tag for cancer therapy ** Diffusion Pharmaceutical Inc DFFN.O: up 8.7% BUZZ-Up on FDA's response to proposed COVID-19 treatment trial plan ** Goldman Sachs Group Inc GS.N: up 7.4% ** JPMorgan Chase & Co JPM.N: up 7.2% ** Citigroup Inc C.N: up 9.0% ** Wells Fargo & Co WFC.N: up 7.8% ** Bank of America Corp BAC.N: up 7.0% ** Morgan Stanley MS.N: up 7.0% BUZZ-U.S. banks: Rise as yields edge higher ** Sky Solar Holdings Ltd SKYS.O: up 17.7% BUZZ-Surges on buyout proposal ** DouYu International Holdings Ltd DOYU.O: up 20.0% BUZZ-Rises on quarterly revenue beat ** Kala Pharmaceuticals Inc KALA.O: up 0.9% BUZZ-Up on FDA nod to resubmitted application for eye drug ** Sorrento Therapeutics Inc SRNE.O: up 3.9% BUZZ-Rises on FDA nod for clinical trial of protein deposition disorder treatment ** Johnson & Johnson JNJ.N: up 0.9% BUZZ-Bowel syndrome drug cost surpasses budget impact threshold- ICER ** Adapthealth Corp AHCO.O: up 5.1% BUZZ-Gains on agreement to acquire diabetes device supplier ** 1Life Healthcare Inc ONEM.O: down 9.7% BUZZ-Falls on planned $250 mln convertible offering ** Marvell Technology Group Ltd MRVL.O: up 3.3% BUZZ-Hits over 14-yr high as Susquehanna lifts PT on 5G boost ** AutoZone Inc AZO.N: up 1.1% BUZZ-Rises as same-store sales improve ** Hibbett Sports Inc HIBB.O: up 2.6% BUZZ-Rises as retailer says current-quarter sales are "robust" ** Anaplan Inc PLAN.N: down 6.5% BUZZ-Falls on tepid Q2 revenue forecast ** Novavax Inc NVAX.O: up 10.0% BUZZ-Surges after starting clinical trial of COVID-19 vaccine candidate ** Gilead Sciences Inc GILD.O: up 1.1% BUZZ-SunTrust upgrades on remdesivir sales potential ** Hewlett Packard Enterprise Co HPE.N: up 3.1% BUZZ-Rises as JPM upgrades on IT spending recovery ** Tuesday Morning Corp TUES.O: down 7.0% BUZZ-Plunges on report of bankruptcy filing preparations ** Merck & Co Inc MRK.N: up 2.3% BUZZ- Rises on plans to develop COVID-19 vaccine, antiviral drug ** Chevron Corp CVX.N: up 3.2% ** Exxon Mobil Corp XOM.N: up 2.9% ** Apache Corp APA.N: up 3.9% ** WPX Energy Inc WPX.N, RIC: up 1.3% ** Callon Petroleum Co CPE.N: up 1.4% ** Occidental Petroleum Corp OXY.N: up 1.1% ** Schlumberger NV SLB.N: up 4.6% ** Halliburton Co HAL.N: up 2.6% ** TechnipFMC FTI.N: up 6.0% ** Baker Hughes Co BKR.N: up 4.7% BUZZ-Oil and gas stocks gain as confidence in supply cut grows ** Alibaba Group Holdings Inc BABA.N: up 1.8% BUZZ-Street View: Alibaba's robust growth remains very well intact ** American Airlines Groups Inc AAL.O: up 13.8% ** United Airlines Holdings Inc UAL.O: up 14.3% ** Expedia Group Inc EXPE.O: up 6.9% ** Tripadvisor Inc TRIP.O: up 14.0% ** Marriott International Inc MAR.O: up 4.7% BUZZ-U.S. travel firms fly on hopes of easing travel restriction in Europe The 11 major S&P 500 sectors: Communication Services Eikon search string for individual stock moves: STXBZ The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh U.S. stocks jumped and the S&P 500 crossed 3,000 points on Tuesday as optimism about a potential coronavirus vaccine and a revival in business activity helped investors overlook simmering Sino-U.S. tensions. .N At 12:59 ET, the Dow Jones Industrial Average .DJI was up 2.67% at 25,119.36.
|
5842.0
|
2020-05-26 00:00:00 UTC
|
Why Airline Stocks Are Flying Higher Today
|
AAL
|
https://www.nasdaq.com/articles/why-airline-stocks-are-flying-higher-today-2020-05-26
|
nan
|
nan
|
What happened
Airline stocks are rocketing higher on Tuesday morning, joining in a broader market rally as investors celebrate signs economic activity is returning to normal and promising developments in the race for the COVID-19 vaccine.
Shares of Spirit Airlines (NYSE: SAVE) led the way, up more than 14% as of 10 a.m. EDT, with shares of Southwest Airlines (NYSE: LUV), United Airlines Holdings (NASDAQ: UAL), Delta Air Lines (NYSE: DAL), American Airlines Group (NASDAQ: AAL), Alaska Air Group (NYSE: ALK), JetBlue Airways (NASDAQ: JBLU), and Hawaiian Holdings (NASDAQ: HA) all up double digits.
So what
Airlines have been hit hard by the COVID-19 pandemic, with global travel demand reduced to nearly zero. The carriers have responded by slashing schedules, grounding planes, and cutting costs, with many major airlines flying only about 5% of their original schedules in May.
The cost cuts, coupled with government assistance as part of the CARES Act stimulus plan and private fundraising efforts, have bought the airlines time. But no airline can survive indefinitely with little revenue coming in, and the sector is going to need to see travel start to normalize in the months to come to avoid liquidity issues.
Image source: Getty Images.
Investors saw signs of normalization over the Memorial Day weekend in the U.S., with crowds flocking to beaches and other traditional vacation sites. The pandemic is far from over, and in fact it is possible all that travel could lead to a spike in future cases, but there was also good news regarding the development of COVID treatments and vaccines from Merck and Novavax.
Airline investors have other green shoots to encourage them. German carrier Lufthansa is nearing an assistance package that should help it fly through the crisis, which is an incremental positive for its U.S. partner, United. And Southwest was upgraded at UBS from neutral to buy, with analyst Myles Walton saying the path for a domestic recovery is becoming more clear.
Now what
Most of these airline stocks lost more than half of their value in the early days of the pandemic, with investors fearful the sector was facing a wave of bankruptcies. Globally we have seen airlines go bankrupt, including two of the largest airlines in South America, but the U.S. industry entered the downturn in better financial shape than most and so far has managed through the crisis well.
For investors, it is pretty straightforward from here: If demand does return to even more normal recessionary levels, the stocks are undervalued and have a lot of potential to shoot higher. If demand does not return, bankruptcy remains a possibility and equity holders could end up wiped out completely.
On Tuesday, the optimists are in charge, but investors should be warned there is still plenty of risk and uncertainty with the airlines right now. I'm more hopeful than most that the entire U.S. sector can fly through this crisis without failures, but given the uncertainty, I'd recommend sticking to top names if you're thinking about buying in right now.
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 April 16, 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.
|
Shares of Spirit Airlines (NYSE: SAVE) led the way, up more than 14% as of 10 a.m. EDT, with shares of Southwest Airlines (NYSE: LUV), United Airlines Holdings (NASDAQ: UAL), Delta Air Lines (NYSE: DAL), American Airlines Group (NASDAQ: AAL), Alaska Air Group (NYSE: ALK), JetBlue Airways (NASDAQ: JBLU), and Hawaiian Holdings (NASDAQ: HA) all up double digits. What happened Airline stocks are rocketing higher on Tuesday morning, joining in a broader market rally as investors celebrate signs economic activity is returning to normal and promising developments in the race for the COVID-19 vaccine. The cost cuts, coupled with government assistance as part of the CARES Act stimulus plan and private fundraising efforts, have bought the airlines time.
|
Shares of Spirit Airlines (NYSE: SAVE) led the way, up more than 14% as of 10 a.m. EDT, with shares of Southwest Airlines (NYSE: LUV), United Airlines Holdings (NASDAQ: UAL), Delta Air Lines (NYSE: DAL), American Airlines Group (NASDAQ: AAL), Alaska Air Group (NYSE: ALK), JetBlue Airways (NASDAQ: JBLU), and Hawaiian Holdings (NASDAQ: HA) all up double digits. See the 10 stocks *Stock Advisor returns as of April 16, 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.
|
Shares of Spirit Airlines (NYSE: SAVE) led the way, up more than 14% as of 10 a.m. EDT, with shares of Southwest Airlines (NYSE: LUV), United Airlines Holdings (NASDAQ: UAL), Delta Air Lines (NYSE: DAL), American Airlines Group (NASDAQ: AAL), Alaska Air Group (NYSE: ALK), JetBlue Airways (NASDAQ: JBLU), and Hawaiian Holdings (NASDAQ: HA) all up double digits. What happened Airline stocks are rocketing higher on Tuesday morning, joining in a broader market rally as investors celebrate signs economic activity is returning to normal and promising developments in the race for the COVID-19 vaccine. See the 10 stocks *Stock Advisor returns as of April 16, 2020 Lou Whiteman owns shares of Delta Air Lines and Spirit Airlines.
|
Shares of Spirit Airlines (NYSE: SAVE) led the way, up more than 14% as of 10 a.m. EDT, with shares of Southwest Airlines (NYSE: LUV), United Airlines Holdings (NASDAQ: UAL), Delta Air Lines (NYSE: DAL), American Airlines Group (NASDAQ: AAL), Alaska Air Group (NYSE: ALK), JetBlue Airways (NASDAQ: JBLU), and Hawaiian Holdings (NASDAQ: HA) all up double digits. For investors, it is pretty straightforward from here: If demand does return to even more normal recessionary levels, the stocks are undervalued and have a lot of potential to shoot higher. That's right -- they think these 10 stocks are even better buys.
|
5843.0
|
2020-05-26 00:00:00 UTC
|
BUZZ-U.S. STOCKS ON THE MOVE-Alliance Data Systems, Alibaba Group, Dexcom, Can Fite Biofarma, U.S. travel firms
|
AAL
|
https://www.nasdaq.com/articles/buzz-u.s.-stocks-on-the-move-alliance-data-systems-alibaba-group-dexcom-can-fite-biofarma
|
nan
|
nan
|
Eikon search string for individual stock moves: STXBZ
The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi
The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh
U.S. stocks jumped and the S&P 500 breached 3,000 points on Tuesday as optimism about a potential coronavirus vaccine and a revival in business activity helped investors overlook simmering Sino-U.S. tensions .N
At 10:44 ET, the Dow Jones Industrial Average .DJI was up 2.49% at 25,073.63. The S&P 500 .SPX was up 1.89% at 3,011.35 and the Nasdaq Composite .IXIC was up 1.14% at 9,431.314. The top three S&P 500 .PG.INX percentage gainers: ** Alliance Data Systems Corp , up 16% ** Norwegian Cruise Line Holdings Ltd , up 13.2% ** United Airlines Holdings Inc , up 12.7% The top three S&P 500 .PL.INX percentage losers: ** Dexcom Inc , down 4.3% ** Take-Two Interactive Software Inc , down 3.6% ** Regeneron Pharmaceuticals Inc , down 3.5% The top two NYSE .PG.N percentage gainers: ** Amplify Seymour Cannabis ETF , up 24.7% ** Fly Leasing Ltd , up 23.3% The top three NYSE .PL.N percentage losers: ** ProShares UltraShort MSCI Brazil Capped , down 19.3% ** Direxion Daily S&P 500 High Beta Bear 3X Shares , down 17.4% ** Can Fite Biofarma Ltd , down 15.3% The top three Nasdaq .PG.O percentage gainers: ** MMtec Inc , up 97.3% ** Luckin Coffe Inc , up 62.6% ** Argenx SE , up 34.1% The top three Nasdaq .PL.O percentage losers: ** Qualigen Therapeutics Inc, down 29.7% ** Genetic Technologies Ltd , down 16.3% ** Medigus Ltd , down 13.6% ** American Airlines Groups Inc AAL.O: up 10.3% ** United Airlines Holdings Inc UAL.O: up 12.7% ** Expedia Group Inc EXPE.O: up 9.0% BUZZ-U.S. travel firms fly on hopes of easing travel restriction in Europe ** JPMorgan Chase & Co JPM.N: up 5.2% ** Goldman Sachs Group Inc GS.N: up 6.2% BUZZ-U.S. Banks: Rise as yields edge higher ** Hewlett Packard Enterprise Co HPE.N: up 3.8%
BUZZ-Rises as JPM upgrades on IT spending recovery ** Novavax Inc NVAX.O: up 11.8%
BUZZ-Surges after starting clinical trial of COVID-19 vaccine candidate ** Tuesday Morning Corp TUES.O: down 17.5%
BUZZ-Plunges on report of bankruptcy filing preparations ** Merck & Co Inc MRK.N: up 1.8%
BUZZ-Shares rise on plans to develop COVID-19 vaccine, antiviral drug ** Exxon Mobil Corp XOM.N: up 3.0% ** Chevron Corp CVX.N: up 4.2% ** Halliburton Co HAL.N: up 2.8% ** Occidental Petroleum Corp OXY.N: up 2.9%
BUZZ-Oil and gas stocks gain as confidence in supply cut grows ** Alibaba Group Holdings Inc BABA.N: up 2.6%
BUZZ-Street View: Alibaba's robust growth remains very well intact ** Regeneron Pharmaceuticals Inc REGN.O: down 3.5%
BUZZ-Buyback of stake from Sanofi positive for both companies - analysts
BUZZ-Street View: Sanofi's Regeneron stake sale positive, unsurprising ** Sorrento Therapeutics Inc SRNE.O: up 5.3%
BUZZ-Sorrento rises on FDA nod for clinical trial of protein deposition disorder treatment ** BioLine RX Ltd BLRX.O: down 30.1%
BUZZ-BioLine RX drops on deep-discounted stock deal ** DouYu International Holdings Ltd DOYU.N: up 15.3%
BUZZ-Rises on quarterly revenue beat ** Duke Energy Corp DUK.N: up 0.8% ** CenterPoint Energy Inc CNP.N: up 4.9%
BUZZ-Utilities sector: Left behind but holding up well - CS ** Sky Solar Holdings Ltd SKYS.O: up 18.9%
BUZZ-Surges on buyout proposal ** Johnson & Johnson JNJ.N: up 1.2%
BUZZ-Bowel syndrome drug cost surpasses budget impact threshold- ICER ** Diffusion Pharmaceuticals Inc DFFN.O: up 16.9%
BUZZ-Diffusion Pharma up on FDA's response to proposed COVID-19 treatment trial plan ** Cellectar Biosciences Inc CLRB.O: up 10.6%
BUZZ-Cellectar rises on FDA fast-track tag for cancer therapy ** IZEA Worldwide Inc IZEA.O: up 38.5%
BUZZ-IZEA Worldwide surges on strong sales, marketing service deal The 11 major S&P 500 sectors:
Communication Services
.SPLRCL
up 1.53%
Consumer Discretionary
.SPLRCD
up 1.84%
Consumer Staples
.SPLRCS
up 1.15%
Energy
.SPNY
up 3.54%
Financial
.SPSY
up 4.42%
Health
.SPXHC
up 0.65%
Industrial
.SPLRCI
up 3.98%
Information Technology
.SPLRCT
up 0.91%
Materials
.SPLRCM
up 2.63%
Real Estate
.SPLRCR
up 2.79%
Utilities
.SPLRCU
up 2.30%
(Compiled by Shradha Singh in Bengaluru)
((Shradha.Singh@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
The top three S&P 500 .PG.INX percentage gainers: ** Alliance Data Systems Corp , up 16% ** Norwegian Cruise Line Holdings Ltd , up 13.2% ** United Airlines Holdings Inc , up 12.7% The top three S&P 500 .PL.INX percentage losers: ** Dexcom Inc , down 4.3% ** Take-Two Interactive Software Inc , down 3.6% ** Regeneron Pharmaceuticals Inc , down 3.5% The top two NYSE .PG.N percentage gainers: ** Amplify Seymour Cannabis ETF , up 24.7% ** Fly Leasing Ltd , up 23.3% The top three NYSE .PL.N percentage losers: ** ProShares UltraShort MSCI Brazil Capped , down 19.3% ** Direxion Daily S&P 500 High Beta Bear 3X Shares , down 17.4% ** Can Fite Biofarma Ltd , down 15.3% The top three Nasdaq .PG.O percentage gainers: ** MMtec Inc , up 97.3% ** Luckin Coffe Inc , up 62.6% ** Argenx SE , up 34.1% The top three Nasdaq .PL.O percentage losers: ** Qualigen Therapeutics Inc, down 29.7% ** Genetic Technologies Ltd , down 16.3% ** Medigus Ltd , down 13.6% ** American Airlines Groups Inc AAL.O: up 10.3% ** United Airlines Holdings Inc UAL.O: up 12.7% ** Expedia Group Inc EXPE.O: up 9.0% BUZZ-U.S. travel firms fly on hopes of easing travel restriction in Europe ** JPMorgan Chase & Co JPM.N: up 5.2% ** Goldman Sachs Group Inc GS.N: up 6.2% BUZZ-U.S. Banks: Rise as yields edge higher ** Hewlett Packard Enterprise Co HPE.N: up 3.8% BUZZ-Rises as JPM upgrades on IT spending recovery ** Novavax Inc NVAX.O: up 11.8% BUZZ-Surges after starting clinical trial of COVID-19 vaccine candidate ** Tuesday Morning Corp TUES.O: down 17.5% BUZZ-Plunges on report of bankruptcy filing preparations ** Merck & Co Inc MRK.N: up 1.8% BUZZ-Shares rise on plans to develop COVID-19 vaccine, antiviral drug ** Exxon Mobil Corp XOM.N: up 3.0% ** Chevron Corp CVX.N: up 4.2% ** Halliburton Co HAL.N: up 2.8% ** Occidental Petroleum Corp OXY.N: up 2.9% BUZZ-Oil and gas stocks gain as confidence in supply cut grows ** Alibaba Group Holdings Inc BABA.N: up 2.6% BUZZ-Street View: Alibaba's robust growth remains very well intact ** Regeneron Pharmaceuticals Inc REGN.O: down 3.5% BUZZ-Buyback of stake from Sanofi positive for both companies - analysts BUZZ-Street View: Sanofi's Regeneron stake sale positive, unsurprising ** Sorrento Therapeutics Inc SRNE.O: up 5.3% BUZZ-Sorrento rises on FDA nod for clinical trial of protein deposition disorder treatment ** BioLine RX Ltd BLRX.O: down 30.1% BUZZ-BioLine RX drops on deep-discounted stock deal ** DouYu International Holdings Ltd DOYU.N: up 15.3% BUZZ-Rises on quarterly revenue beat ** Duke Energy Corp DUK.N: up 0.8% ** CenterPoint Energy Inc CNP.N: up 4.9% BUZZ-Utilities sector: Left behind but holding up well - CS ** Sky Solar Holdings Ltd SKYS.O: up 18.9% BUZZ-Surges on buyout proposal ** Johnson & Johnson JNJ.N: up 1.2% BUZZ-Bowel syndrome drug cost surpasses budget impact threshold- ICER ** Diffusion Pharmaceuticals Inc DFFN.O: up 16.9% BUZZ-Diffusion Pharma up on FDA's response to proposed COVID-19 treatment trial plan ** Cellectar Biosciences Inc CLRB.O: up 10.6% BUZZ-Cellectar rises on FDA fast-track tag for cancer therapy ** IZEA Worldwide Inc IZEA.O: up 38.5% BUZZ-IZEA Worldwide surges on strong sales, marketing service deal The 11 major S&P 500 sectors: Communication Services Eikon search string for individual stock moves: STXBZ The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh U.S. stocks jumped and the S&P 500 breached 3,000 points on Tuesday as optimism about a potential coronavirus vaccine and a revival in business activity helped investors overlook simmering Sino-U.S. tensions .N At 10:44 ET, the Dow Jones Industrial Average .DJI was up 2.49% at 25,073.63. up 2.30% (Compiled by Shradha Singh in Bengaluru) ((Shradha.Singh@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
The top three S&P 500 .PG.INX percentage gainers: ** Alliance Data Systems Corp , up 16% ** Norwegian Cruise Line Holdings Ltd , up 13.2% ** United Airlines Holdings Inc , up 12.7% The top three S&P 500 .PL.INX percentage losers: ** Dexcom Inc , down 4.3% ** Take-Two Interactive Software Inc , down 3.6% ** Regeneron Pharmaceuticals Inc , down 3.5% The top two NYSE .PG.N percentage gainers: ** Amplify Seymour Cannabis ETF , up 24.7% ** Fly Leasing Ltd , up 23.3% The top three NYSE .PL.N percentage losers: ** ProShares UltraShort MSCI Brazil Capped , down 19.3% ** Direxion Daily S&P 500 High Beta Bear 3X Shares , down 17.4% ** Can Fite Biofarma Ltd , down 15.3% The top three Nasdaq .PG.O percentage gainers: ** MMtec Inc , up 97.3% ** Luckin Coffe Inc , up 62.6% ** Argenx SE , up 34.1% The top three Nasdaq .PL.O percentage losers: ** Qualigen Therapeutics Inc, down 29.7% ** Genetic Technologies Ltd , down 16.3% ** Medigus Ltd , down 13.6% ** American Airlines Groups Inc AAL.O: up 10.3% ** United Airlines Holdings Inc UAL.O: up 12.7% ** Expedia Group Inc EXPE.O: up 9.0% BUZZ-U.S. travel firms fly on hopes of easing travel restriction in Europe ** JPMorgan Chase & Co JPM.N: up 5.2% ** Goldman Sachs Group Inc GS.N: up 6.2% BUZZ-U.S. Banks: Rise as yields edge higher ** Hewlett Packard Enterprise Co HPE.N: up 3.8% BUZZ-Rises as JPM upgrades on IT spending recovery ** Novavax Inc NVAX.O: up 11.8% BUZZ-Surges after starting clinical trial of COVID-19 vaccine candidate ** Tuesday Morning Corp TUES.O: down 17.5% BUZZ-Plunges on report of bankruptcy filing preparations ** Merck & Co Inc MRK.N: up 1.8% BUZZ-Shares rise on plans to develop COVID-19 vaccine, antiviral drug ** Exxon Mobil Corp XOM.N: up 3.0% ** Chevron Corp CVX.N: up 4.2% ** Halliburton Co HAL.N: up 2.8% ** Occidental Petroleum Corp OXY.N: up 2.9% BUZZ-Oil and gas stocks gain as confidence in supply cut grows ** Alibaba Group Holdings Inc BABA.N: up 2.6% BUZZ-Street View: Alibaba's robust growth remains very well intact ** Regeneron Pharmaceuticals Inc REGN.O: down 3.5% BUZZ-Buyback of stake from Sanofi positive for both companies - analysts BUZZ-Street View: Sanofi's Regeneron stake sale positive, unsurprising ** Sorrento Therapeutics Inc SRNE.O: up 5.3% BUZZ-Sorrento rises on FDA nod for clinical trial of protein deposition disorder treatment ** BioLine RX Ltd BLRX.O: down 30.1% BUZZ-BioLine RX drops on deep-discounted stock deal ** DouYu International Holdings Ltd DOYU.N: up 15.3% BUZZ-Rises on quarterly revenue beat ** Duke Energy Corp DUK.N: up 0.8% ** CenterPoint Energy Inc CNP.N: up 4.9% BUZZ-Utilities sector: Left behind but holding up well - CS ** Sky Solar Holdings Ltd SKYS.O: up 18.9% BUZZ-Surges on buyout proposal ** Johnson & Johnson JNJ.N: up 1.2% BUZZ-Bowel syndrome drug cost surpasses budget impact threshold- ICER ** Diffusion Pharmaceuticals Inc DFFN.O: up 16.9% BUZZ-Diffusion Pharma up on FDA's response to proposed COVID-19 treatment trial plan ** Cellectar Biosciences Inc CLRB.O: up 10.6% BUZZ-Cellectar rises on FDA fast-track tag for cancer therapy ** IZEA Worldwide Inc IZEA.O: up 38.5% BUZZ-IZEA Worldwide surges on strong sales, marketing service deal The 11 major S&P 500 sectors: Communication Services Eikon search string for individual stock moves: STXBZ The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh U.S. stocks jumped and the S&P 500 breached 3,000 points on Tuesday as optimism about a potential coronavirus vaccine and a revival in business activity helped investors overlook simmering Sino-U.S. tensions .N At 10:44 ET, the Dow Jones Industrial Average .DJI was up 2.49% at 25,073.63. up 2.30% (Compiled by Shradha Singh in Bengaluru) ((Shradha.Singh@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
The top three S&P 500 .PG.INX percentage gainers: ** Alliance Data Systems Corp , up 16% ** Norwegian Cruise Line Holdings Ltd , up 13.2% ** United Airlines Holdings Inc , up 12.7% The top three S&P 500 .PL.INX percentage losers: ** Dexcom Inc , down 4.3% ** Take-Two Interactive Software Inc , down 3.6% ** Regeneron Pharmaceuticals Inc , down 3.5% The top two NYSE .PG.N percentage gainers: ** Amplify Seymour Cannabis ETF , up 24.7% ** Fly Leasing Ltd , up 23.3% The top three NYSE .PL.N percentage losers: ** ProShares UltraShort MSCI Brazil Capped , down 19.3% ** Direxion Daily S&P 500 High Beta Bear 3X Shares , down 17.4% ** Can Fite Biofarma Ltd , down 15.3% The top three Nasdaq .PG.O percentage gainers: ** MMtec Inc , up 97.3% ** Luckin Coffe Inc , up 62.6% ** Argenx SE , up 34.1% The top three Nasdaq .PL.O percentage losers: ** Qualigen Therapeutics Inc, down 29.7% ** Genetic Technologies Ltd , down 16.3% ** Medigus Ltd , down 13.6% ** American Airlines Groups Inc AAL.O: up 10.3% ** United Airlines Holdings Inc UAL.O: up 12.7% ** Expedia Group Inc EXPE.O: up 9.0% BUZZ-U.S. travel firms fly on hopes of easing travel restriction in Europe ** JPMorgan Chase & Co JPM.N: up 5.2% ** Goldman Sachs Group Inc GS.N: up 6.2% BUZZ-U.S. Banks: Rise as yields edge higher ** Hewlett Packard Enterprise Co HPE.N: up 3.8% BUZZ-Rises as JPM upgrades on IT spending recovery ** Novavax Inc NVAX.O: up 11.8% BUZZ-Surges after starting clinical trial of COVID-19 vaccine candidate ** Tuesday Morning Corp TUES.O: down 17.5% BUZZ-Plunges on report of bankruptcy filing preparations ** Merck & Co Inc MRK.N: up 1.8% BUZZ-Shares rise on plans to develop COVID-19 vaccine, antiviral drug ** Exxon Mobil Corp XOM.N: up 3.0% ** Chevron Corp CVX.N: up 4.2% ** Halliburton Co HAL.N: up 2.8% ** Occidental Petroleum Corp OXY.N: up 2.9% BUZZ-Oil and gas stocks gain as confidence in supply cut grows ** Alibaba Group Holdings Inc BABA.N: up 2.6% BUZZ-Street View: Alibaba's robust growth remains very well intact ** Regeneron Pharmaceuticals Inc REGN.O: down 3.5% BUZZ-Buyback of stake from Sanofi positive for both companies - analysts BUZZ-Street View: Sanofi's Regeneron stake sale positive, unsurprising ** Sorrento Therapeutics Inc SRNE.O: up 5.3% BUZZ-Sorrento rises on FDA nod for clinical trial of protein deposition disorder treatment ** BioLine RX Ltd BLRX.O: down 30.1% BUZZ-BioLine RX drops on deep-discounted stock deal ** DouYu International Holdings Ltd DOYU.N: up 15.3% BUZZ-Rises on quarterly revenue beat ** Duke Energy Corp DUK.N: up 0.8% ** CenterPoint Energy Inc CNP.N: up 4.9% BUZZ-Utilities sector: Left behind but holding up well - CS ** Sky Solar Holdings Ltd SKYS.O: up 18.9% BUZZ-Surges on buyout proposal ** Johnson & Johnson JNJ.N: up 1.2% BUZZ-Bowel syndrome drug cost surpasses budget impact threshold- ICER ** Diffusion Pharmaceuticals Inc DFFN.O: up 16.9% BUZZ-Diffusion Pharma up on FDA's response to proposed COVID-19 treatment trial plan ** Cellectar Biosciences Inc CLRB.O: up 10.6% BUZZ-Cellectar rises on FDA fast-track tag for cancer therapy ** IZEA Worldwide Inc IZEA.O: up 38.5% BUZZ-IZEA Worldwide surges on strong sales, marketing service deal The 11 major S&P 500 sectors: Communication Services Eikon search string for individual stock moves: STXBZ The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh U.S. stocks jumped and the S&P 500 breached 3,000 points on Tuesday as optimism about a potential coronavirus vaccine and a revival in business activity helped investors overlook simmering Sino-U.S. tensions .N At 10:44 ET, the Dow Jones Industrial Average .DJI was up 2.49% at 25,073.63. up 1.53% Consumer Discretionary
|
The top three S&P 500 .PG.INX percentage gainers: ** Alliance Data Systems Corp , up 16% ** Norwegian Cruise Line Holdings Ltd , up 13.2% ** United Airlines Holdings Inc , up 12.7% The top three S&P 500 .PL.INX percentage losers: ** Dexcom Inc , down 4.3% ** Take-Two Interactive Software Inc , down 3.6% ** Regeneron Pharmaceuticals Inc , down 3.5% The top two NYSE .PG.N percentage gainers: ** Amplify Seymour Cannabis ETF , up 24.7% ** Fly Leasing Ltd , up 23.3% The top three NYSE .PL.N percentage losers: ** ProShares UltraShort MSCI Brazil Capped , down 19.3% ** Direxion Daily S&P 500 High Beta Bear 3X Shares , down 17.4% ** Can Fite Biofarma Ltd , down 15.3% The top three Nasdaq .PG.O percentage gainers: ** MMtec Inc , up 97.3% ** Luckin Coffe Inc , up 62.6% ** Argenx SE , up 34.1% The top three Nasdaq .PL.O percentage losers: ** Qualigen Therapeutics Inc, down 29.7% ** Genetic Technologies Ltd , down 16.3% ** Medigus Ltd , down 13.6% ** American Airlines Groups Inc AAL.O: up 10.3% ** United Airlines Holdings Inc UAL.O: up 12.7% ** Expedia Group Inc EXPE.O: up 9.0% BUZZ-U.S. travel firms fly on hopes of easing travel restriction in Europe ** JPMorgan Chase & Co JPM.N: up 5.2% ** Goldman Sachs Group Inc GS.N: up 6.2% BUZZ-U.S. Banks: Rise as yields edge higher ** Hewlett Packard Enterprise Co HPE.N: up 3.8% BUZZ-Rises as JPM upgrades on IT spending recovery ** Novavax Inc NVAX.O: up 11.8% BUZZ-Surges after starting clinical trial of COVID-19 vaccine candidate ** Tuesday Morning Corp TUES.O: down 17.5% BUZZ-Plunges on report of bankruptcy filing preparations ** Merck & Co Inc MRK.N: up 1.8% BUZZ-Shares rise on plans to develop COVID-19 vaccine, antiviral drug ** Exxon Mobil Corp XOM.N: up 3.0% ** Chevron Corp CVX.N: up 4.2% ** Halliburton Co HAL.N: up 2.8% ** Occidental Petroleum Corp OXY.N: up 2.9% BUZZ-Oil and gas stocks gain as confidence in supply cut grows ** Alibaba Group Holdings Inc BABA.N: up 2.6% BUZZ-Street View: Alibaba's robust growth remains very well intact ** Regeneron Pharmaceuticals Inc REGN.O: down 3.5% BUZZ-Buyback of stake from Sanofi positive for both companies - analysts BUZZ-Street View: Sanofi's Regeneron stake sale positive, unsurprising ** Sorrento Therapeutics Inc SRNE.O: up 5.3% BUZZ-Sorrento rises on FDA nod for clinical trial of protein deposition disorder treatment ** BioLine RX Ltd BLRX.O: down 30.1% BUZZ-BioLine RX drops on deep-discounted stock deal ** DouYu International Holdings Ltd DOYU.N: up 15.3% BUZZ-Rises on quarterly revenue beat ** Duke Energy Corp DUK.N: up 0.8% ** CenterPoint Energy Inc CNP.N: up 4.9% BUZZ-Utilities sector: Left behind but holding up well - CS ** Sky Solar Holdings Ltd SKYS.O: up 18.9% BUZZ-Surges on buyout proposal ** Johnson & Johnson JNJ.N: up 1.2% BUZZ-Bowel syndrome drug cost surpasses budget impact threshold- ICER ** Diffusion Pharmaceuticals Inc DFFN.O: up 16.9% BUZZ-Diffusion Pharma up on FDA's response to proposed COVID-19 treatment trial plan ** Cellectar Biosciences Inc CLRB.O: up 10.6% BUZZ-Cellectar rises on FDA fast-track tag for cancer therapy ** IZEA Worldwide Inc IZEA.O: up 38.5% BUZZ-IZEA Worldwide surges on strong sales, marketing service deal The 11 major S&P 500 sectors: Communication Services Eikon search string for individual stock moves: STXBZ The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh U.S. stocks jumped and the S&P 500 breached 3,000 points on Tuesday as optimism about a potential coronavirus vaccine and a revival in business activity helped investors overlook simmering Sino-U.S. tensions .N At 10:44 ET, the Dow Jones Industrial Average .DJI was up 2.49% at 25,073.63. The S&P 500 .SPX was up 1.89% at 3,011.35 and the Nasdaq Composite .IXIC was up 1.14% at 9,431.314.
|
5844.0
|
2020-05-26 00:00:00 UTC
|
10 Hot Stocks Young Investors Bought as Coronavirus Hit
|
AAL
|
https://www.nasdaq.com/articles/10-hot-stocks-young-investors-bought-as-coronavirus-hit-2020-05-26
|
nan
|
nan
|
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.]
Warren Buffett — widely thought of as the world’s greatest investor — is famous for saying that it pays to be greedy when others are fearful.
At least two groups of investors heeded his advice during the huge March selloff in stocks: corporate insiders and young investors.
As we’ve discussed before, corporate insiders aggressively bought the dip in March, with insider buying surging to record high levels. Young investors did the same. In an interview with CNBC’s Jim Cramer, the co-Chief Executive Officer of Robinhood — which is known for attracting young investors — said that buying activity on the trading platform rose 60% month-over-month in March.
In other words, young investors went on a shopping spree in March for coronavirus stocks.
That makes complete sense. The novel coronavirus outbreak, while a big deal today, is temporary. It will pass. When it does, stocks will bounce back, and continue on their multi-century trend higher. That’s just how things work.
So, if you have time on your side — which young investors do — then buying the dip is the smart move.
7 of the Best Large-Cap Stocks to Buy Now
With that in mind, let’s take a deeper look at the specific individual stocks that young investors bought big in March. Those in-demand, hot stocks include:
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.
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 quite tasty on this dip.
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 $200-plus prices within the next quarters.
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. As it does recover, cruise stocks will bounce back.
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 $800.
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 $700, valuation is a slight issue for Tesla stock. As such, buy the stock on dips below $700, 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, 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.
|
Those in-demand, hot stocks include: 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 quite tasty on this dip.
|
Those in-demand, hot stocks include: 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 quite tasty on this dip.
|
Those in-demand, hot stocks include: 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 quite tasty on this dip.
|
Those in-demand, hot stocks include: 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 quite tasty on this dip.
|
5845.0
|
2020-05-26 00:00:00 UTC
|
BUZZ-U.S. STOCKS ON THE MOVE-LATAM Airlines, Tuesday Morning, Novavax
|
AAL
|
https://www.nasdaq.com/articles/buzz-u.s.-stocks-on-the-move-latam-airlines-tuesday-morning-novavax-2020-05-26
|
nan
|
nan
|
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 futures surged on Tuesday as business restarts and optimism about a potential coronavirus vaccine helped investors returning from a long weekend to overlook Sino-U.S. tensions. .N
At 08:14 ET, Dow e-minis 1YMc1 were up 2.03% at 24,920. S&P 500 e-minis ESc1 were up 1.82% at 3,006.75, while Nasdaq 100 e-minis NQc1 were up 1.52% at 9,549.5. The top three NYSE percentage gainers premarket .PRPG.NQ: ** Morgan Stanley Emerging Mkt Debt Fund Inc MSD.N, up 19.9% ** Genesis Healthcare Inc , up 14.4% ** MDU Resources Group Inc MDU.N, up 14.3% The top three NYSE percentage losers premarket .PRPL.NQ: ** LATAM Airlines Group SA LTM.N, down 41.3% ** Anaplan Inc PLAN.N, down 8.3% ** Carriage Services Inc CSV.N, down 7.7% The top three Nasdaq percentage gainers premarket .PRPG.O: ** MMtec Inc MTC.O, up 168.2% ** 1-800-Flowers.Com Inc FLWS.O, up 44.5% ** Evofem Biosciences Inc EVFM.O, up 43.7% The top three Nasdaq percentage losers premarket .PRPL.O: ** Centric Brands Inc CTRC.O, down 30.9% ** Fluent Inc FLNT.O, down 25.3% ** Qualigen Therapeutics Inc QLGN.O, down 21.4% ** Novavax Inc NVAX.O: up 18.2% premarket BUZZ-Surges after starting clinical trial of COVID-19 vaccine candidate ** Gilead Sciences Inc GILD.O: up 0.9% premarket BUZZ-SunTrust upgrades on remdesivir sales potential ** Hewlett Packard Enterprise Co HPE.N: up 2.1% premarket BUZZ-Rises as JPM upgrades on IT spending recovery ** Tuesday Morning Corp TUES.O: down 20.2% premarket BUZZ-Plunges on report of bankruptcy filing preparations ** Pinduoduo Inc PDD.O: up 1.9% premarket BUZZ-Better positioned post COVID-19 pandemic, says KeyBanc, raises PT ** Co-Diagnostics Inc CODX.O: up 3.2% premarket BUZZ-Rises after COVID-19 test identifies virus in cancer tissue ** LATAM Airlines Group LTM.N: down 41.3% premarket BUZZ-Plunges on Chapter 11 bankruptcy protection filing ** Merck & Co INc MRK.N: up 4.7% premarket BUZZ-Shares rise on plans to develop COVID-19 vaccine, antiviral drug ** Chevron Corp CVX.N: up 2.0% premarket ** Exxon Mobil Corp XOM.N: up 2.4% premarket ** Apache Corp APA.N: up 4.0% premarket ** Callon Petroleum Co CPE.N: up 4.2% premarket ** Occidental Petroleum Corp OXY.N: up 4.0% premarket
** Schlumberger NV SLB.N: up 3.0% premarket ** Halliburton Co HAL.N: up 2.8% premarket ** TechnipFMC FTI.N: up 5.7% premarket ** Baker Hughes Co BKR.N: up 1.7% premarket BUZZ-Oil and gas stocks gain as confidence in supply cut grows ** Alibaba Group Holdings Inc BABA.N: up 2.4% premarket BUZZ-Street View: Alibaba's robust growth remains very well intact ** Zynerba Pharmaceuticals Inc ZYNE.O: up 0.5% premarket BUZZ-Rises as gel improves condition of neurological disorder patients ** American Airlines Groups Inc AAL.O: up 5.9% premarket ** United Airlines Holdings Inc UAL.O: up 7.2% premarket ** Expedia Group Inc EXPE.O: up 5.6% premarket ** Tripadvisor Inc TRIP.O: up 6.4% premarket ** Marriott International Inc MAR.O: up 5.2% premarket BUZZ-U.S. travel firms fly on hopes of easing travel restriction in Europe
(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.
|
The top three NYSE percentage gainers premarket .PRPG.NQ: ** Morgan Stanley Emerging Mkt Debt Fund Inc MSD.N, up 19.9% ** Genesis Healthcare Inc , up 14.4% ** MDU Resources Group Inc MDU.N, up 14.3% The top three NYSE percentage losers premarket .PRPL.NQ: ** LATAM Airlines Group SA LTM.N, down 41.3% ** Anaplan Inc PLAN.N, down 8.3% ** Carriage Services Inc CSV.N, down 7.7% The top three Nasdaq percentage gainers premarket .PRPG.O: ** MMtec Inc MTC.O, up 168.2% ** 1-800-Flowers.Com Inc FLWS.O, up 44.5% ** Evofem Biosciences Inc EVFM.O, up 43.7% The top three Nasdaq percentage losers premarket .PRPL.O: ** Centric Brands Inc CTRC.O, down 30.9% ** Fluent Inc FLNT.O, down 25.3% ** Qualigen Therapeutics Inc QLGN.O, down 21.4% ** Novavax Inc NVAX.O: up 18.2% premarket BUZZ-Surges after starting clinical trial of COVID-19 vaccine candidate ** Gilead Sciences Inc GILD.O: up 0.9% premarket BUZZ-SunTrust upgrades on remdesivir sales potential ** Hewlett Packard Enterprise Co HPE.N: up 2.1% premarket BUZZ-Rises as JPM upgrades on IT spending recovery ** Tuesday Morning Corp TUES.O: down 20.2% premarket BUZZ-Plunges on report of bankruptcy filing preparations ** Pinduoduo Inc PDD.O: up 1.9% premarket BUZZ-Better positioned post COVID-19 pandemic, says KeyBanc, raises PT ** Co-Diagnostics Inc CODX.O: up 3.2% premarket BUZZ-Rises after COVID-19 test identifies virus in cancer tissue ** LATAM Airlines Group LTM.N: down 41.3% premarket BUZZ-Plunges on Chapter 11 bankruptcy protection filing ** Merck & Co INc MRK.N: up 4.7% premarket BUZZ-Shares rise on plans to develop COVID-19 vaccine, antiviral drug ** Chevron Corp CVX.N: up 2.0% premarket ** Exxon Mobil Corp XOM.N: up 2.4% premarket ** Apache Corp APA.N: up 4.0% premarket ** Callon Petroleum Co CPE.N: up 4.2% premarket ** Occidental Petroleum Corp OXY.N: up 4.0% premarket ** Schlumberger NV SLB.N: up 3.0% premarket ** Halliburton Co HAL.N: up 2.8% premarket ** TechnipFMC FTI.N: up 5.7% premarket ** Baker Hughes Co BKR.N: up 1.7% premarket BUZZ-Oil and gas stocks gain as confidence in supply cut grows ** Alibaba Group Holdings Inc BABA.N: up 2.4% premarket BUZZ-Street View: Alibaba's robust growth remains very well intact ** Zynerba Pharmaceuticals Inc ZYNE.O: up 0.5% premarket BUZZ-Rises as gel improves condition of neurological disorder patients ** American Airlines Groups Inc AAL.O: up 5.9% premarket ** United Airlines Holdings Inc UAL.O: up 7.2% premarket ** Expedia Group Inc EXPE.O: up 5.6% premarket ** Tripadvisor Inc TRIP.O: up 6.4% premarket ** Marriott International Inc MAR.O: up 5.2% premarket BUZZ-U.S. travel firms fly on hopes of easing travel restriction in Europe (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. 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 futures surged on Tuesday as business restarts and optimism about a potential coronavirus vaccine helped investors returning from a long weekend to overlook Sino-U.S. tensions. .N At 08:14 ET, Dow e-minis 1YMc1 were up 2.03% at 24,920.
|
The top three NYSE percentage gainers premarket .PRPG.NQ: ** Morgan Stanley Emerging Mkt Debt Fund Inc MSD.N, up 19.9% ** Genesis Healthcare Inc , up 14.4% ** MDU Resources Group Inc MDU.N, up 14.3% The top three NYSE percentage losers premarket .PRPL.NQ: ** LATAM Airlines Group SA LTM.N, down 41.3% ** Anaplan Inc PLAN.N, down 8.3% ** Carriage Services Inc CSV.N, down 7.7% The top three Nasdaq percentage gainers premarket .PRPG.O: ** MMtec Inc MTC.O, up 168.2% ** 1-800-Flowers.Com Inc FLWS.O, up 44.5% ** Evofem Biosciences Inc EVFM.O, up 43.7% The top three Nasdaq percentage losers premarket .PRPL.O: ** Centric Brands Inc CTRC.O, down 30.9% ** Fluent Inc FLNT.O, down 25.3% ** Qualigen Therapeutics Inc QLGN.O, down 21.4% ** Novavax Inc NVAX.O: up 18.2% premarket BUZZ-Surges after starting clinical trial of COVID-19 vaccine candidate ** Gilead Sciences Inc GILD.O: up 0.9% premarket BUZZ-SunTrust upgrades on remdesivir sales potential ** Hewlett Packard Enterprise Co HPE.N: up 2.1% premarket BUZZ-Rises as JPM upgrades on IT spending recovery ** Tuesday Morning Corp TUES.O: down 20.2% premarket BUZZ-Plunges on report of bankruptcy filing preparations ** Pinduoduo Inc PDD.O: up 1.9% premarket BUZZ-Better positioned post COVID-19 pandemic, says KeyBanc, raises PT ** Co-Diagnostics Inc CODX.O: up 3.2% premarket BUZZ-Rises after COVID-19 test identifies virus in cancer tissue ** LATAM Airlines Group LTM.N: down 41.3% premarket BUZZ-Plunges on Chapter 11 bankruptcy protection filing ** Merck & Co INc MRK.N: up 4.7% premarket BUZZ-Shares rise on plans to develop COVID-19 vaccine, antiviral drug ** Chevron Corp CVX.N: up 2.0% premarket ** Exxon Mobil Corp XOM.N: up 2.4% premarket ** Apache Corp APA.N: up 4.0% premarket ** Callon Petroleum Co CPE.N: up 4.2% premarket ** Occidental Petroleum Corp OXY.N: up 4.0% premarket ** Schlumberger NV SLB.N: up 3.0% premarket ** Halliburton Co HAL.N: up 2.8% premarket ** TechnipFMC FTI.N: up 5.7% premarket ** Baker Hughes Co BKR.N: up 1.7% premarket BUZZ-Oil and gas stocks gain as confidence in supply cut grows ** Alibaba Group Holdings Inc BABA.N: up 2.4% premarket BUZZ-Street View: Alibaba's robust growth remains very well intact ** Zynerba Pharmaceuticals Inc ZYNE.O: up 0.5% premarket BUZZ-Rises as gel improves condition of neurological disorder patients ** American Airlines Groups Inc AAL.O: up 5.9% premarket ** United Airlines Holdings Inc UAL.O: up 7.2% premarket ** Expedia Group Inc EXPE.O: up 5.6% premarket ** Tripadvisor Inc TRIP.O: up 6.4% premarket ** Marriott International Inc MAR.O: up 5.2% premarket BUZZ-U.S. travel firms fly on hopes of easing travel restriction in Europe (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. 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 futures surged on Tuesday as business restarts and optimism about a potential coronavirus vaccine helped investors returning from a long weekend to overlook Sino-U.S. tensions. S&P 500 e-minis ESc1 were up 1.82% at 3,006.75, while Nasdaq 100 e-minis NQc1 were up 1.52% at 9,549.5.
|
The top three NYSE percentage gainers premarket .PRPG.NQ: ** Morgan Stanley Emerging Mkt Debt Fund Inc MSD.N, up 19.9% ** Genesis Healthcare Inc , up 14.4% ** MDU Resources Group Inc MDU.N, up 14.3% The top three NYSE percentage losers premarket .PRPL.NQ: ** LATAM Airlines Group SA LTM.N, down 41.3% ** Anaplan Inc PLAN.N, down 8.3% ** Carriage Services Inc CSV.N, down 7.7% The top three Nasdaq percentage gainers premarket .PRPG.O: ** MMtec Inc MTC.O, up 168.2% ** 1-800-Flowers.Com Inc FLWS.O, up 44.5% ** Evofem Biosciences Inc EVFM.O, up 43.7% The top three Nasdaq percentage losers premarket .PRPL.O: ** Centric Brands Inc CTRC.O, down 30.9% ** Fluent Inc FLNT.O, down 25.3% ** Qualigen Therapeutics Inc QLGN.O, down 21.4% ** Novavax Inc NVAX.O: up 18.2% premarket BUZZ-Surges after starting clinical trial of COVID-19 vaccine candidate ** Gilead Sciences Inc GILD.O: up 0.9% premarket BUZZ-SunTrust upgrades on remdesivir sales potential ** Hewlett Packard Enterprise Co HPE.N: up 2.1% premarket BUZZ-Rises as JPM upgrades on IT spending recovery ** Tuesday Morning Corp TUES.O: down 20.2% premarket BUZZ-Plunges on report of bankruptcy filing preparations ** Pinduoduo Inc PDD.O: up 1.9% premarket BUZZ-Better positioned post COVID-19 pandemic, says KeyBanc, raises PT ** Co-Diagnostics Inc CODX.O: up 3.2% premarket BUZZ-Rises after COVID-19 test identifies virus in cancer tissue ** LATAM Airlines Group LTM.N: down 41.3% premarket BUZZ-Plunges on Chapter 11 bankruptcy protection filing ** Merck & Co INc MRK.N: up 4.7% premarket BUZZ-Shares rise on plans to develop COVID-19 vaccine, antiviral drug ** Chevron Corp CVX.N: up 2.0% premarket ** Exxon Mobil Corp XOM.N: up 2.4% premarket ** Apache Corp APA.N: up 4.0% premarket ** Callon Petroleum Co CPE.N: up 4.2% premarket ** Occidental Petroleum Corp OXY.N: up 4.0% premarket ** Schlumberger NV SLB.N: up 3.0% premarket ** Halliburton Co HAL.N: up 2.8% premarket ** TechnipFMC FTI.N: up 5.7% premarket ** Baker Hughes Co BKR.N: up 1.7% premarket BUZZ-Oil and gas stocks gain as confidence in supply cut grows ** Alibaba Group Holdings Inc BABA.N: up 2.4% premarket BUZZ-Street View: Alibaba's robust growth remains very well intact ** Zynerba Pharmaceuticals Inc ZYNE.O: up 0.5% premarket BUZZ-Rises as gel improves condition of neurological disorder patients ** American Airlines Groups Inc AAL.O: up 5.9% premarket ** United Airlines Holdings Inc UAL.O: up 7.2% premarket ** Expedia Group Inc EXPE.O: up 5.6% premarket ** Tripadvisor Inc TRIP.O: up 6.4% premarket ** Marriott International Inc MAR.O: up 5.2% premarket BUZZ-U.S. travel firms fly on hopes of easing travel restriction in Europe (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. .N At 08:14 ET, Dow e-minis 1YMc1 were up 2.03% at 24,920. S&P 500 e-minis ESc1 were up 1.82% at 3,006.75, while Nasdaq 100 e-minis NQc1 were up 1.52% at 9,549.5.
|
The top three NYSE percentage gainers premarket .PRPG.NQ: ** Morgan Stanley Emerging Mkt Debt Fund Inc MSD.N, up 19.9% ** Genesis Healthcare Inc , up 14.4% ** MDU Resources Group Inc MDU.N, up 14.3% The top three NYSE percentage losers premarket .PRPL.NQ: ** LATAM Airlines Group SA LTM.N, down 41.3% ** Anaplan Inc PLAN.N, down 8.3% ** Carriage Services Inc CSV.N, down 7.7% The top three Nasdaq percentage gainers premarket .PRPG.O: ** MMtec Inc MTC.O, up 168.2% ** 1-800-Flowers.Com Inc FLWS.O, up 44.5% ** Evofem Biosciences Inc EVFM.O, up 43.7% The top three Nasdaq percentage losers premarket .PRPL.O: ** Centric Brands Inc CTRC.O, down 30.9% ** Fluent Inc FLNT.O, down 25.3% ** Qualigen Therapeutics Inc QLGN.O, down 21.4% ** Novavax Inc NVAX.O: up 18.2% premarket BUZZ-Surges after starting clinical trial of COVID-19 vaccine candidate ** Gilead Sciences Inc GILD.O: up 0.9% premarket BUZZ-SunTrust upgrades on remdesivir sales potential ** Hewlett Packard Enterprise Co HPE.N: up 2.1% premarket BUZZ-Rises as JPM upgrades on IT spending recovery ** Tuesday Morning Corp TUES.O: down 20.2% premarket BUZZ-Plunges on report of bankruptcy filing preparations ** Pinduoduo Inc PDD.O: up 1.9% premarket BUZZ-Better positioned post COVID-19 pandemic, says KeyBanc, raises PT ** Co-Diagnostics Inc CODX.O: up 3.2% premarket BUZZ-Rises after COVID-19 test identifies virus in cancer tissue ** LATAM Airlines Group LTM.N: down 41.3% premarket BUZZ-Plunges on Chapter 11 bankruptcy protection filing ** Merck & Co INc MRK.N: up 4.7% premarket BUZZ-Shares rise on plans to develop COVID-19 vaccine, antiviral drug ** Chevron Corp CVX.N: up 2.0% premarket ** Exxon Mobil Corp XOM.N: up 2.4% premarket ** Apache Corp APA.N: up 4.0% premarket ** Callon Petroleum Co CPE.N: up 4.2% premarket ** Occidental Petroleum Corp OXY.N: up 4.0% premarket ** Schlumberger NV SLB.N: up 3.0% premarket ** Halliburton Co HAL.N: up 2.8% premarket ** TechnipFMC FTI.N: up 5.7% premarket ** Baker Hughes Co BKR.N: up 1.7% premarket BUZZ-Oil and gas stocks gain as confidence in supply cut grows ** Alibaba Group Holdings Inc BABA.N: up 2.4% premarket BUZZ-Street View: Alibaba's robust growth remains very well intact ** Zynerba Pharmaceuticals Inc ZYNE.O: up 0.5% premarket BUZZ-Rises as gel improves condition of neurological disorder patients ** American Airlines Groups Inc AAL.O: up 5.9% premarket ** United Airlines Holdings Inc UAL.O: up 7.2% premarket ** Expedia Group Inc EXPE.O: up 5.6% premarket ** Tripadvisor Inc TRIP.O: up 6.4% premarket ** Marriott International Inc MAR.O: up 5.2% premarket BUZZ-U.S. travel firms fly on hopes of easing travel restriction in Europe (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. 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 futures surged on Tuesday as business restarts and optimism about a potential coronavirus vaccine helped investors returning from a long weekend to overlook Sino-U.S. tensions. .N At 08:14 ET, Dow e-minis 1YMc1 were up 2.03% at 24,920.
|
5846.0
|
2020-05-26 00:00:00 UTC
|
Nordic investors turn up heat on coal in climate campaign
|
AAL
|
https://www.nasdaq.com/articles/nordic-investors-turn-up-heat-on-coal-in-climate-campaign-2020-05-26
|
nan
|
nan
|
By Gwladys Fouche and Simon Jessop
OSLO/LONDON, May 25 (Reuters) - Five years after first ditching some coal companies, Nordic investors are turning their focus to bigger carbon emitters in a range of industries, paving the way for other funds to follow.
Norway's sovereign wealth fund, managed by Norges Bank Investment Management (NBIM), last week excluded five companies, including Glencore GLEN.L, from its holdings after putting a hard limit on coal-related emissions.
Investors in the Nordic region have been among the vanguard of environmental, social and governance (ESG) investing, with Norway's NBIM grabbing most of the attention due to its size.
The $1 trillion fund this week also evicted four oil firms for "unacceptable" emissions, putting any laggards in sectors including cement and steel on notice.
Although some smaller funds have been more ambitious, NBIM was one of a small group of investors to exclude in 2015 all firms that derived more than 30% of revenues from thermal coal.
More than 50 investors have since introduced some form of revenue-based limit and, after several years of political debate in Norway, NBIM's rules are expected to bolster such efforts even if they are not uniformly adopted.
"You're never going to get a perfect metric for any of this stuff: different asset owners and different asset managers are going to be doing it differently," Mark Lewis at BNP Paribas Asset Management BNPP.PA said.
Norwegian pension fund KLP has already applied the new volume limits on coal, its head of responsible investments Jeanett Bergan told Reuters, adding it had been interested to see what criteria were used for "unacceptable" emissions.
"I understand it as them trying to say that 'if you are an outlier, who has way higher emissions than your peers, then we don't want to finance you'," she said.
DNB Asset Management DNB.OL said it had already moved to reflect the tighter rules. So did Norway's Storebrand Asset Management, although irrespective of NBIM's move.
"It was important for us to implement stricter criteria within climate mitigation as part of the climate strategy and also because NBIM is seen as best practice for many institutional investors in Norway," Janicke Scheele, DNB's head of responsible investments, said.
"It is seen as the consensus for what the Norwegian people's expectations are."
Finnish pension fund Varma said it had already moved to tighten its climate policy in late 2019, aiming to be carbon neutral by 2035 and fully divested from some sectors such as oil exploration by 2030.
Sweden's AP, meanwhile, said in March it would exit fossil fuels completely.
GAME CHANGER
For NBIM and most other asset managers, including the world's biggest such as BlackRock BLK.N, engagement with companies remains preferable to portfolio exclusions.
"What you can say with 100% certainty ... is all of these targets, thresholds, metrics, methodologies are only going to get tighter over time," said Lewis at BNP Paribas Asset Management.
Yet as government pressure builds to do more in the shift to a low-carbon economy, divestment remains a fund's nuclear option and for Yossi Cadan of campaigning group 350.org NBIM's new, absolute ceiling represents "a game changer".
"Up until now, a vast majority of those institutions who divested adopted the criteria of the portion of revenues generated from coal and in most cases ... 30% was the threshold for divestment," he said.
Other investors often have their own approaches to measure the risk posed to their investments and not all funds will follow as quickly or in the same way.
"There are regional differences," Belinda Gan, investment director for global sustainability at Schroders, said.
"I wouldn't see, necessarily, Asia jumping on board and embracing everything that's going on in Europe, as they're more advanced over here (on sustainability issues)."
(Additional reporting by Anne Kauranen in Helsinki, Jacob Gronholt Pedersen in Copenhagen and Colm Fulton in Stockholm; Editing by Alexander Smith)
((simon.jessop@thomsonreuters.com; +44 (0) 207 542 5052; Reuters Messaging: Reuters Messaging: simon.jessop.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
By Gwladys Fouche and Simon Jessop OSLO/LONDON, May 25 (Reuters) - Five years after first ditching some coal companies, Nordic investors are turning their focus to bigger carbon emitters in a range of industries, paving the way for other funds to follow. Norwegian pension fund KLP has already applied the new volume limits on coal, its head of responsible investments Jeanett Bergan told Reuters, adding it had been interested to see what criteria were used for "unacceptable" emissions. Yet as government pressure builds to do more in the shift to a low-carbon economy, divestment remains a fund's nuclear option and for Yossi Cadan of campaigning group 350.org NBIM's new, absolute ceiling represents "a game changer".
|
Norway's sovereign wealth fund, managed by Norges Bank Investment Management (NBIM), last week excluded five companies, including Glencore GLEN.L, from its holdings after putting a hard limit on coal-related emissions. The $1 trillion fund this week also evicted four oil firms for "unacceptable" emissions, putting any laggards in sectors including cement and steel on notice. "You're never going to get a perfect metric for any of this stuff: different asset owners and different asset managers are going to be doing it differently," Mark Lewis at BNP Paribas Asset Management BNPP.PA said.
|
Norway's sovereign wealth fund, managed by Norges Bank Investment Management (NBIM), last week excluded five companies, including Glencore GLEN.L, from its holdings after putting a hard limit on coal-related emissions. "You're never going to get a perfect metric for any of this stuff: different asset owners and different asset managers are going to be doing it differently," Mark Lewis at BNP Paribas Asset Management BNPP.PA said. Norwegian pension fund KLP has already applied the new volume limits on coal, its head of responsible investments Jeanett Bergan told Reuters, adding it had been interested to see what criteria were used for "unacceptable" emissions.
|
"You're never going to get a perfect metric for any of this stuff: different asset owners and different asset managers are going to be doing it differently," Mark Lewis at BNP Paribas Asset Management BNPP.PA said. Norwegian pension fund KLP has already applied the new volume limits on coal, its head of responsible investments Jeanett Bergan told Reuters, adding it had been interested to see what criteria were used for "unacceptable" emissions. DNB Asset Management DNB.OL said it had already moved to reflect the tighter rules.
|
5847.0
|
2020-05-25 00:00:00 UTC
|
Lufthansa and German government agree $9.8 bln rescue package
|
AAL
|
https://www.nasdaq.com/articles/lufthansa-and-german-government-agree-%249.8-bln-rescue-package-2020-05-25
|
nan
|
nan
|
By Arno Schuetze and Christian Kraemer
FRANKFURT/BERLIN, May 25 (Reuters) - The German government and Lufthansa LHAG.DE, which has been hit hard by the coronavirus pandemic, have reached a preliminary deal on a 9 billion euro ($9.8 billion) bailout.
The airline has been in talks with Berlin for weeks over aid to help it to cope with what is expected to be a protracted travel slump, but the carrier has been wrangling over how much control to yield in return for support.
The German Finance and Economy Ministries on Monday said Lufthansa was an operationally healthy company before the coronavirus outbreak, was profitable and had good prospects for the future but had got into trouble because of the pandemic.
Rivals such as Franco-Dutch group Air France-KLM AIRF.PA and U.S. carriers American Airlines AAL.O, United Airlines UAL.O and Delta Air Lines DAL.N have also sought state aid.
Shares in the company were up 5.5% at 8.48 euros by 1507 GMT.
Lufthansa said that conditions of the deal include the waiver of future dividend payments and limits on management pay. The government will also fill two seats on the supervisory board, one of which is to become a member of the audit committee.
The plan includes Germany taking a 20% stake in Lufthansa, which it plans to sell by the end of 2023. Germany will buy the new shares at the nominal value of 2.56 euros apiece for a total of about 300 million euros.
Finance Minister Olaf Scholz said the rescue package was a "very, very good solution" that takes into account the needs of both the company and taxpayers.
"The support that we're preparing here is for a limited period," he said.
"When the company is fit again, the state will sell its stake and hopefully ... with a small profit that puts us into a position to finance the many, many requirements which we have to meet now, not only at this company."
The government will also inject 5.7 billion euros in non-voting capital, dubbed silent participation, into the company. Part of this could be converted into an additional 5% equity stake, either if coupon payments are missed or to protect the company against a takeover.
The silent participation will carry a coupon of 4% in 2020 and 2021, increasing to 9.5% by 2027 to encourage fast repayment.
Separately, Lufthansa will receive a 3 billion euro loan from state-backed bank KfW and private banks with a term of three years.
The bailout deal is still pending approval by shareholders as well as the European Commission.
The company and the competition watchdog are still discussing which slots at which airports Lufthansa will have to waive as a remedy to ensure the bailout does not hamper competition, a person close to the matter said.
"Scrutiny is extremely thorough as it is the first large equity-based bailout in the pandemic," the source said.
According to business daily Handelsblatt, German chancellor Angela Merkel said that Germany would fight for remedies not being too stringent.
($1 = 0.9168 euros)
(Additional reporting by Michael Nienaber and Ilona Wissenbach Editing by Jan Harvey and David Goodman)
((frankfurt.newsroom@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.
|
Rivals such as Franco-Dutch group Air France-KLM AIRF.PA and U.S. carriers American Airlines AAL.O, United Airlines UAL.O and Delta Air Lines DAL.N have also sought state aid. The airline has been in talks with Berlin for weeks over aid to help it to cope with what is expected to be a protracted travel slump, but the carrier has been wrangling over how much control to yield in return for support. The German Finance and Economy Ministries on Monday said Lufthansa was an operationally healthy company before the coronavirus outbreak, was profitable and had good prospects for the future but had got into trouble because of the pandemic.
|
Rivals such as Franco-Dutch group Air France-KLM AIRF.PA and U.S. carriers American Airlines AAL.O, United Airlines UAL.O and Delta Air Lines DAL.N have also sought state aid. By Arno Schuetze and Christian Kraemer FRANKFURT/BERLIN, May 25 (Reuters) - The German government and Lufthansa LHAG.DE, which has been hit hard by the coronavirus pandemic, have reached a preliminary deal on a 9 billion euro ($9.8 billion) bailout. Lufthansa said that conditions of the deal include the waiver of future dividend payments and limits on management pay.
|
Rivals such as Franco-Dutch group Air France-KLM AIRF.PA and U.S. carriers American Airlines AAL.O, United Airlines UAL.O and Delta Air Lines DAL.N have also sought state aid. By Arno Schuetze and Christian Kraemer FRANKFURT/BERLIN, May 25 (Reuters) - The German government and Lufthansa LHAG.DE, which has been hit hard by the coronavirus pandemic, have reached a preliminary deal on a 9 billion euro ($9.8 billion) bailout. The German Finance and Economy Ministries on Monday said Lufthansa was an operationally healthy company before the coronavirus outbreak, was profitable and had good prospects for the future but had got into trouble because of the pandemic.
|
Rivals such as Franco-Dutch group Air France-KLM AIRF.PA and U.S. carriers American Airlines AAL.O, United Airlines UAL.O and Delta Air Lines DAL.N have also sought state aid. By Arno Schuetze and Christian Kraemer FRANKFURT/BERLIN, May 25 (Reuters) - The German government and Lufthansa LHAG.DE, which has been hit hard by the coronavirus pandemic, have reached a preliminary deal on a 9 billion euro ($9.8 billion) bailout. The German Finance and Economy Ministries on Monday said Lufthansa was an operationally healthy company before the coronavirus outbreak, was profitable and had good prospects for the future but had got into trouble because of the pandemic.
|
5848.0
|
2020-05-25 00:00:00 UTC
|
Nordic investors turn up heat on coal in climate campaign
|
AAL
|
https://www.nasdaq.com/articles/nordic-investors-turn-up-heat-on-coal-in-climate-campaign-2020-05-25
|
nan
|
nan
|
By Gwladys Fouche and Simon Jessop
OSLO/LONDON, May 25 (Reuters) - Five years after first ditching some coal companies, Nordic investors are turning their focus to bigger carbon emitters in a range of industries, paving the way for other funds to follow.
Norway's sovereign wealth fund, managed by Norges Bank Investment Management (NBIM), last week excluded five companies, including Glencore GLEN.L, from its holdings after putting a hard limit on coal-related emissions.
Investors in the Nordic region have been among the vanguard of environmental, social and governance (ESG) investing, with Norway's NBIM grabbing most of the attention due to its size.
The $1 trillion fund this week also evicted four oil firms for "unacceptable" emissions, putting any laggards in sectors including cement and steel on notice.
Although some smaller funds have been more ambitious, NBIM was one of a small group of investors to exclude in 2015 all firms that derived more than 30% of revenues from thermal coal.
More than 50 investors have since introduced some form of revenue-based limit and, after several years of political debate in Norway, NBIM's rules are expected to bolster such efforts even if they are not uniformly adopted.
"You're never going to get a perfect metric for any of this stuff: different asset owners and different asset managers are going to be doing it differently," Mark Lewis at BNP Paribas Asset Management BNPP.PA said.
Norwegian pension fund KLP has already applied the new volume limits on coal, its head of responsible investments Jeanett Bergan told Reuters, adding it had been interested to see what criteria were used for "unacceptable" emissions.
"I understand it as them trying to say that 'if you are an outlier, who has way higher emissions than your peers, then we don't want to finance you'," she said.
DNB Asset Management DNB.OL said it had already moved to reflect the tighter rules. So did Norway's Storebrand Asset Management, although irrespective of NBIM's move.
"It was important for us to implement stricter criteria within climate mitigation as part of the climate strategy and also because NBIM is seen as best practice for many institutional investors in Norway," Janicke Scheele, DNB's head of responsible investments, said.
"It is seen as the consensus for what the Norwegian people's expectations are."
Finnish pension fund Varma said it had already moved to tighten its climate policy in late 2019, aiming to be carbon neutral by 2035 and fully divested from some sectors such as oil exploration by 2030.
Sweden's AP, meanwhile, said in March it would exit fossil fuels completely.
GAME CHANGER
For NBIM and most other asset managers, including the world's biggest such as BlackRock BLK.N, engagement with companies remains preferable to portfolio exclusions.
"What you can say with 100% certainty ... is all of these targets, thresholds, metrics, methodologies are only going to get tighter over time," said Lewis at BNP Paribas Asset Management.
Yet as government pressure builds to do more in the shift to a low-carbon economy, divestment remains a fund's nuclear option and for Yossi Cadan of campaigning group 350.org NBIM's new, absolute ceiling represents "a game changer".
"Up until now, a vast majority of those institutions who divested adopted the criteria of the portion of revenues generated from coal and in most cases ... 30% was the threshold for divestment," he said.
Other investors often have their own approaches to measure the risk posed to their investments and not all funds will follow as quickly or in the same way.
"There are regional differences," Belinda Gan, investment director for global sustainability at Schroders, said.
"I wouldn't see, necessarily, Asia jumping on board and embracing everything that's going on in Europe, as they're more advanced over here (on sustainability issues)."
(Additional reporting by Anne Kauranen in Helsinki, Jacob Gronholt Pedersen in Copenhagen and Colm Fulton in Stockholm; Editing by Alexander Smith)
((simon.jessop@thomsonreuters.com; +44 (0) 207 542 5052; Reuters Messaging: Reuters Messaging: simon.jessop.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
By Gwladys Fouche and Simon Jessop OSLO/LONDON, May 25 (Reuters) - Five years after first ditching some coal companies, Nordic investors are turning their focus to bigger carbon emitters in a range of industries, paving the way for other funds to follow. Norwegian pension fund KLP has already applied the new volume limits on coal, its head of responsible investments Jeanett Bergan told Reuters, adding it had been interested to see what criteria were used for "unacceptable" emissions. Yet as government pressure builds to do more in the shift to a low-carbon economy, divestment remains a fund's nuclear option and for Yossi Cadan of campaigning group 350.org NBIM's new, absolute ceiling represents "a game changer".
|
Norway's sovereign wealth fund, managed by Norges Bank Investment Management (NBIM), last week excluded five companies, including Glencore GLEN.L, from its holdings after putting a hard limit on coal-related emissions. The $1 trillion fund this week also evicted four oil firms for "unacceptable" emissions, putting any laggards in sectors including cement and steel on notice. "You're never going to get a perfect metric for any of this stuff: different asset owners and different asset managers are going to be doing it differently," Mark Lewis at BNP Paribas Asset Management BNPP.PA said.
|
Norway's sovereign wealth fund, managed by Norges Bank Investment Management (NBIM), last week excluded five companies, including Glencore GLEN.L, from its holdings after putting a hard limit on coal-related emissions. "You're never going to get a perfect metric for any of this stuff: different asset owners and different asset managers are going to be doing it differently," Mark Lewis at BNP Paribas Asset Management BNPP.PA said. Norwegian pension fund KLP has already applied the new volume limits on coal, its head of responsible investments Jeanett Bergan told Reuters, adding it had been interested to see what criteria were used for "unacceptable" emissions.
|
"You're never going to get a perfect metric for any of this stuff: different asset owners and different asset managers are going to be doing it differently," Mark Lewis at BNP Paribas Asset Management BNPP.PA said. Norwegian pension fund KLP has already applied the new volume limits on coal, its head of responsible investments Jeanett Bergan told Reuters, adding it had been interested to see what criteria were used for "unacceptable" emissions. DNB Asset Management DNB.OL said it had already moved to reflect the tighter rules.
|
5849.0
|
2020-05-24 00:00:00 UTC
|
Airline Stocks Are Soaring: Should You Buy or Sell?
|
AAL
|
https://www.nasdaq.com/articles/airline-stocks-are-soaring%3A-should-you-buy-or-sell-2020-05-24
|
nan
|
nan
|
Airlines have been among the hardest-hit businesses during the COVID-19 pandemic. For much of the spring, nearly all states were requiring people to stay home except for essential activities. In any case, with conventions canceled, businesses moving to remote work, theme parks closed, hotels offering limited service, and international travel severely restricted by travel bans, most Americans have had nowhere to go.
The resulting plunge in air travel demand caused airlines to begin hemorrhaging cash. As a result, shares of major airlines like American Airlines (NASDAQ: AAL), Delta Air Lines (NYSE: DAL), Southwest Airlines (NYSE: LUV), and United Airlines (NASDAQ: UAL) have lost half to two-thirds of their value over the past three months.
However, airline stocks bounced back in a big way this week, lifted by signs that travel demand is starting to recover. United Airlines shares led the way, surging 27.5%.
Airline Stocks Weekly Performance, data by YCharts.
Nevertheless, investors should be cautious about jumping into airline stocks. So far, the "recovery" has been extremely modest, and it is likely to take several years for demand to fully return.
A trend change in U.S. air travel
The TSA has been providing daily data on passenger throughput at its security checkpoints for the past several months, offering a window into the rapid changes in air travel trends.
On March 1, the number of travelers passing through TSA checkpoints was down just 1% compared to the same weekday in 2019. However, traffic deteriorated rapidly over the course of the month. By March 16, passenger throughput was down 49% year over year; by March 31, it was down 93%.
Passenger throughput at TSA checkpoints finally bottomed out in mid-April at just 4% of 2019 levels. And throughput was down more than 90% year over year for every single day from March 26 to May 20.
That said, traffic through TSA checkpoints has been improving sequentially in recent weeks. For most of the past week, traffic has been around 9% of 2019 levels (more than double what was seen a month earlier). On Thursday, throughput reached its highest level in nearly two months at 12% of the prior-year figure, indicating that some people went ahead with Memorial Day weekend travel plans.
Air travel demand remains extremely limited for now. Image source: Delta Air Lines.
Airlines confirm green shoots
The gradual but steady trend toward higher passenger numbers reported by the TSA has made investors more optimistic about airlines. Comments by several airline executives at a recent industry conference added to this optimism, fueling last week's big rally in airline stocks.
For example, Southwest Airlines pointed to "a modest improvement in passenger demand, bookings, and trip cancellations" in May. As a result, Southwest now expects its May load factor to land between 25% and 30%. Previously, it had expected to fill fewer than 10% of available seats with paying customers. Revenue is on track to decline 85% to 90% year over year this month: about 5 percentage points better than Southwest's initial guidance. Importantly, new bookings are now exceeding cancellations, substantially reducing cash burn.
Other airlines are also seeing green shoots. Delta Air Lines CFO Paul Jacobson said that net bookings had turned positive on some days recently. That puts Delta on pace to exit the quarter with cash burn at around $40 million a day: $10 million better than what it expected a month ago. Delta's load factor has been about 35% to 40% in recent days. American Airlines' load factor has also improved to around 35%, helped by deep capacity cuts. United is seeing improved demand, too. As a result, it is planning a 75% year-over-year reduction in scheduled capacity for July, compared to 90% cuts in May and June.
Demand is still very low
It's encouraging to see trends moving in the right direction for airlines. That said, demand remains extremely low. Airlines will lose less money with passenger traffic down 88% than they did with traffic down 96%, but they will still lose a lot of money and burn through cash. Furthermore, as Delta's CFO warned, investors shouldn't make too much of the recent uptick in bookings, as people still may cancel their travel plans (e.g. if the number of COVID-19 cases starts to increase again).
It's also important to recognize that Americans hold a wide range of views about the threat posed by the pandemic. An Economist/YouGov poll earlier this month found that 64% of respondents were somewhat or very worried about contracting COVID-19. However, 11% were not worried at all and another 25% were "not too worried" about getting sick.
It's reasonable to guess that the recent uptick in travel is being driven primarily by the people who are not very worried about the pandemic. Based on that demand pool, getting back to 30% of 2019 traffic levels may be achievable over the next few months. But after that point, momentum could slow until there's a much broader consensus that it is safe to resume normal activities.
Image source: Southwest Airlines.
While airlines are working hard to cut costs, even the most successful carriers are unlikely to return to profitability until demand reaches at least 60% or 70% of 2019 levels. Investors should expect losses to continue for at least a few more quarters (and possibly longer).
What does it mean for airline stocks?
With the air travel demand recovery likely to be slow, it's not surprising that American Airlines stock underperformed other airline stocks this week. American had a subpar balance sheet and below-average profitability even before COVID-19. Now, it has the least liquidity among peers and is burning cash the fastest. That creates significant bankruptcy risk.
By contrast, the big rally in United Airlines stock was very surprising. United has been very aggressive about cutting costs, but it will still suffer from a below-average balance sheet, high exposure to international travel, and greater exposure to competition than peers. These weaknesses could hurt the company's ability to recover from the current crisis.
On the other hand, companies like Delta and Southwest may be worth a look for investors. With higher margins under normal conditions, stronger balance sheets (especially at Southwest), and more flexibility to adapt to a rapidly changing demand environment, Delta Air Lines and Southwest Airlines should survive the COVID-19 pandemic with no permanent damage. That creates plenty of upside for both airline stocks, even if the recovery is slow and uneven.
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 April 16, 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.
|
As a result, shares of major airlines like American Airlines (NASDAQ: AAL), Delta Air Lines (NYSE: DAL), Southwest Airlines (NYSE: LUV), and United Airlines (NASDAQ: UAL) have lost half to two-thirds of their value over the past three months. However, airline stocks bounced back in a big way this week, lifted by signs that travel demand is starting to recover. On Thursday, throughput reached its highest level in nearly two months at 12% of the prior-year figure, indicating that some people went ahead with Memorial Day weekend travel plans.
|
As a result, shares of major airlines like American Airlines (NASDAQ: AAL), Delta Air Lines (NYSE: DAL), Southwest Airlines (NYSE: LUV), and United Airlines (NASDAQ: UAL) have lost half to two-thirds of their value over the past three months. Air travel demand remains extremely limited for now. With the air travel demand recovery likely to be slow, it's not surprising that American Airlines stock underperformed other airline stocks this week.
|
As a result, shares of major airlines like American Airlines (NASDAQ: AAL), Delta Air Lines (NYSE: DAL), Southwest Airlines (NYSE: LUV), and United Airlines (NASDAQ: UAL) have lost half to two-thirds of their value over the past three months. With the air travel demand recovery likely to be slow, it's not surprising that American Airlines stock underperformed other airline stocks this week. See the 10 stocks *Stock Advisor returns as of April 16, 2020 Adam Levine-Weinberg owns shares of Delta Air Lines and Southwest Airlines.
|
As a result, shares of major airlines like American Airlines (NASDAQ: AAL), Delta Air Lines (NYSE: DAL), Southwest Airlines (NYSE: LUV), and United Airlines (NASDAQ: UAL) have lost half to two-thirds of their value over the past three months. A trend change in U.S. air travel The TSA has been providing daily data on passenger throughput at its security checkpoints for the past several months, offering a window into the rapid changes in air travel trends. What does it mean for airline stocks?
|
5850.0
|
2020-05-22 00:00:00 UTC
|
U.S. grants tentative OK for 15 air carriers to suspend service to 75 airports
|
AAL
|
https://www.nasdaq.com/articles/u.s.-grants-tentative-ok-for-15-air-carriers-to-suspend-service-to-75-airports-2020-05-22
|
nan
|
nan
|
WASHINGTON, May 22 (Reuters) - The U.S. Transportation Department said late Friday it had granted tentative approval to 15 airlines to temporarily halt service to 75 U.S. airports because of the coronavirus pandemic.
Airlines must maintain minimum service levels in order to receive government assistance but many have petitioned to stop service to airports with low passenger demand. Both United Airlines UAL.O and Delta Air Lines DAL.N won tentative approval to halt flights to 11 airports, while JetBlue Airways Corp JBLU.O, Alaska Airlines ALK.N and Frontier Airlines were approved to stop flights to five airports each. The department said all airports would continue to be served by at least one air carrier.
The Transportation Department said objections to the order can be filed until May 28.
(Reporting by David Shepardson; Editing by Leslie Adler)
((David.Shepardson@thomsonreuters.com; 2028988324;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
WASHINGTON, May 22 (Reuters) - The U.S. Transportation Department said late Friday it had granted tentative approval to 15 airlines to temporarily halt service to 75 U.S. airports because of the coronavirus pandemic. Airlines must maintain minimum service levels in order to receive government assistance but many have petitioned to stop service to airports with low passenger demand. (Reporting by David Shepardson; Editing by Leslie Adler) ((David.Shepardson@thomsonreuters.com; 2028988324;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
WASHINGTON, May 22 (Reuters) - The U.S. Transportation Department said late Friday it had granted tentative approval to 15 airlines to temporarily halt service to 75 U.S. airports because of the coronavirus pandemic. Airlines must maintain minimum service levels in order to receive government assistance but many have petitioned to stop service to airports with low passenger demand. Both United Airlines UAL.O and Delta Air Lines DAL.N won tentative approval to halt flights to 11 airports, while JetBlue Airways Corp JBLU.O, Alaska Airlines ALK.N and Frontier Airlines were approved to stop flights to five airports each.
|
WASHINGTON, May 22 (Reuters) - The U.S. Transportation Department said late Friday it had granted tentative approval to 15 airlines to temporarily halt service to 75 U.S. airports because of the coronavirus pandemic. Airlines must maintain minimum service levels in order to receive government assistance but many have petitioned to stop service to airports with low passenger demand. Both United Airlines UAL.O and Delta Air Lines DAL.N won tentative approval to halt flights to 11 airports, while JetBlue Airways Corp JBLU.O, Alaska Airlines ALK.N and Frontier Airlines were approved to stop flights to five airports each.
|
WASHINGTON, May 22 (Reuters) - The U.S. Transportation Department said late Friday it had granted tentative approval to 15 airlines to temporarily halt service to 75 U.S. airports because of the coronavirus pandemic. Airlines must maintain minimum service levels in order to receive government assistance but many have petitioned to stop service to airports with low passenger demand. Both United Airlines UAL.O and Delta Air Lines DAL.N won tentative approval to halt flights to 11 airports, while JetBlue Airways Corp JBLU.O, Alaska Airlines ALK.N and Frontier Airlines were approved to stop flights to five airports each.
|
5851.0
|
2020-05-22 00:00:00 UTC
|
Anglo American explores sale of South Africa's coal alongside spin-off -sources
|
AAL
|
https://www.nasdaq.com/articles/anglo-american-explores-sale-of-south-africas-coal-alongside-spin-off-sources-2020-05-22
|
nan
|
nan
|
By Clara Denina and Zandi Shabalala
LONDON, May 22 (Reuters) - Anglo American AAL.L is still exploring a sale of its thermal coal assets in South Africa as an alternative to spinning off and listing the business, three sources familiar with the matter told Reuters.
Mining companies are under pressure to stop mining coal, the most polluting fossil fuel, from investors and governments keen to switch to cleaner fuels.
London-listed Anglo said earlier this month that it would spin off its last remaining coal assets in South Africa and list them in Johannesburg.
Sources say an outright sale of Anglo American's coal mines was still on the cards.
When asked for comment, Anglo referred Reuters to a response to shareholders in May saying the company would continue to consider other exit options.
Chief Executive Mark Cutifani told Reuters in February that the company had already received interest from potential buyers both inside and outside of South Africa.
"Launching a sale process is designed to help Anglo generate some positive tension over the pricing of listing," one of the sources said.
"They will do it as a dual track process, knowing that only a domestic or emerging market buyer would come forward," the source added.
Despite a global shift against the use of polluting fossil fuels, coal is still widely used in emerging markets including China, India, Indonesia and Vietnam among others.
A second source said the sales process is expected to attract local bidders but that Exxaro Resources EXXJ.J, already a partner on one of the mines, would be the only one with enough firepower to purchase the assets without a partner.
Anglo's assets would be also marketed to companies including state-backed Coal India COAL.NS, Russia's Suek and China Coal 601898.SS, a third source said.
The remaining portfolio includes a handful of mines, including a joint venture with Exxaro, which churned out around 18 million tonnes of thermal coal last year, mostly for export.
A source familiar with the matter said Anglo was handling the coal spin-off internally for now.
(Additional reporting by Tanisha Heiberg in Johannesburg Editing by Susan Fenton)
((zandi.shabalala@tr.com; +44 77 43 366 127;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
By Clara Denina and Zandi Shabalala LONDON, May 22 (Reuters) - Anglo American AAL.L is still exploring a sale of its thermal coal assets in South Africa as an alternative to spinning off and listing the business, three sources familiar with the matter told Reuters. London-listed Anglo said earlier this month that it would spin off its last remaining coal assets in South Africa and list them in Johannesburg. Chief Executive Mark Cutifani told Reuters in February that the company had already received interest from potential buyers both inside and outside of South Africa.
|
By Clara Denina and Zandi Shabalala LONDON, May 22 (Reuters) - Anglo American AAL.L is still exploring a sale of its thermal coal assets in South Africa as an alternative to spinning off and listing the business, three sources familiar with the matter told Reuters. London-listed Anglo said earlier this month that it would spin off its last remaining coal assets in South Africa and list them in Johannesburg. Despite a global shift against the use of polluting fossil fuels, coal is still widely used in emerging markets including China, India, Indonesia and Vietnam among others.
|
By Clara Denina and Zandi Shabalala LONDON, May 22 (Reuters) - Anglo American AAL.L is still exploring a sale of its thermal coal assets in South Africa as an alternative to spinning off and listing the business, three sources familiar with the matter told Reuters. Sources say an outright sale of Anglo American's coal mines was still on the cards. Anglo's assets would be also marketed to companies including state-backed Coal India COAL.NS, Russia's Suek and China Coal 601898.SS, a third source said.
|
By Clara Denina and Zandi Shabalala LONDON, May 22 (Reuters) - Anglo American AAL.L is still exploring a sale of its thermal coal assets in South Africa as an alternative to spinning off and listing the business, three sources familiar with the matter told Reuters. Despite a global shift against the use of polluting fossil fuels, coal is still widely used in emerging markets including China, India, Indonesia and Vietnam among others. Anglo's assets would be also marketed to companies including state-backed Coal India COAL.NS, Russia's Suek and China Coal 601898.SS, a third source said.
|
5852.0
|
2020-05-22 00:00:00 UTC
|
Airline Bailouts: A Symptom of Failing American Capitalism
|
AAL
|
https://www.nasdaq.com/articles/airline-bailouts%3A-a-symptom-of-failing-american-capitalism-2020-05-22
|
nan
|
nan
|
If there's one thing more important to a functioning capitalist market than anything else, it's this: the ability to learn from discomfort. That might sound glib, but it's true.
If your lemonade stand isn't selling, you'll need to change something -- your recipe, location, sales tactics -- or simply close up shop. This process has been repeated millions of times over hundreds of years. It's far from perfect, but it's worked better than any other system at scale.
But we appear to have a new normal among American investors (and politicians): the inability to sit with and learn from discomfort. That might sound benign, but it's not. And the 2020 bailout of the airline industry is a textbook example of what I mean.
Image source: Getty Images.
First, a little history
Let's start with a history lesson. Between 2002 and 2011, there were eight bankruptcies among major airlines in North America. They were:
United (NASDAQ: UAL)
US Airways -- which filed twice before merging with American
Air Canada (OTC: ACDVF)
Delta (NYSE: DAL)
Northwest Airlines -- which then merged with Delta
Frontier Airlines
American Airlines (NASDAQ: AAL)
Go to a major American airport after these bankruptcies and these airlines (or their merged entities) are still taking people from Point A to Point B. Pilots are still flying, airline attendants are still keeping us safe, and ground crews are still working the tarmac.
Yes, there's been some discomfort along the way. Shareholders were wiped out, employees had to renegotiate contracts -- probably at less favorable terms -- and there were sleepless nights. Remember, that level of discomfort is a sign that the system is working.
The bottom line: We know what happens when a major airline files for Chapter 11 bankruptcy protection -- they keep on flying.
Whom are we really saving?
Knowing this is crucial. Why? Because the average American likely thinks that when an airline files for bankruptcy protection, it disappears forever.
If that were the case, it wouldn't be hard to argue for government bailouts. But if we know pilots, stewards, and baggage handlers will keep working so long as there's demand -- bankruptcy or not -- then who really benefits from this coronavirus-related government bailout of the airline industry?
The answer: shareholders and those who decided to lend money to airlines. Not the pilots, not the passengers, not "the public."
Yes, part of the agreement for receiving relief funds was to keep paying airline employees (though United has already announced there will be massive layoffs as soon as possible in October). But if that's the rationale, why not just bail out the employees directly? And why only bail out employees in this particular industry?
There's a huge problem with prioritizing shareholders of a company: They bought the stock for the opportunity to achieve outsize returns -- but only because they were willing to take on outsize risk at the same time. You can't have one without the other. As award-winning former Fool Morgan Housel has pointed out, that risk is the price of admission.
On April 2, U.S. Sen. Richard Durbin (D-Illinois) went on CNBC and said this about the $25 billion bailout of the airline industry: "To say that we're rescuing shareholders -- you know, these stock prices have taken a beating -- I don't think there's any rescue that's come through for shareholders yet."
He is either uninformed or being entirely disingenuous. Yes, it's true airline stocks have fallen -- shares of major U.S. carriers are down at least 50% this year. And yes, it's true that airlines can't squander money on buybacks in quite the same way as before.
But Durbin's missing some simple math here: No matter what the price of a stock, it can always fall 100% from where it is. That shares aren't trading for $0.00 is directly caused by the bailout. And it's helping investors -- none more so than Foolish investing favorite Warren Buffett -- exit their positions in airline stocks without being entirely wiped out.
I'm not necessarily mad at Buffett -- I doubt he asked for this. But think about this: Families across the country are, in effect, writing out a check for Buffett and other shareholders, and they'll see next to nothing in return.
What this means
Let's get back to sitting with discomfort for a minute. The reason it's so important that companies actually feel discomfort from the decisions they make is that it generates a feedback loop. Imagine this scenario:
You get in the shower and feel brutally cold water hit your skin (discomfort).
Because of this feedback, you adjust the temperature (corrective action).
You feel the water again, and it's pleasant (comfort).
A functioning feedback loop. Image source: Getty Images.
We cannot sustainably have comfort without discomfort -- that's not how feedback loops work. If airlines know that the government will always pay for them to behave a certain way -- spending more on share buybacks to enrich themselves than they take in from free cash flow -- it will happen again.
But this goes far beyond the airlines. Prior to the COVID-19 pandemic, we had record lows in unemployment and a decade-long bull market. Yet whenever there was a hint that interest rates would rise, stock market investors threw a fit.
We can argue about inflation, but the big-picture signal is this: We must be willing to deal with discomfort, in its many forms. Discomfort educates us. It tells us to take our hand off the hot burner. It lets us know what changes need to be made, so we can make them while our problems are small and manageable.
If we don't get comfortable with discomfort soon, the problems we have to tackle will be much tougher to deal with. A poorly run airline industry will be the least of our concerns -- and no one knows what form the other shoe dropping will take.
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 April 16, 2020
Brian Stoffel has no position in any of the stocks mentioned. The Motley Fool recommends Delta Air Lines. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
They were: United (NASDAQ: UAL) US Airways -- which filed twice before merging with American Air Canada (OTC: ACDVF) Delta (NYSE: DAL) Northwest Airlines -- which then merged with Delta Frontier Airlines American Airlines (NASDAQ: AAL) Go to a major American airport after these bankruptcies and these airlines (or their merged entities) are still taking people from Point A to Point B. But if we know pilots, stewards, and baggage handlers will keep working so long as there's demand -- bankruptcy or not -- then who really benefits from this coronavirus-related government bailout of the airline industry? Yes, part of the agreement for receiving relief funds was to keep paying airline employees (though United has already announced there will be massive layoffs as soon as possible in October).
|
They were: United (NASDAQ: UAL) US Airways -- which filed twice before merging with American Air Canada (OTC: ACDVF) Delta (NYSE: DAL) Northwest Airlines -- which then merged with Delta Frontier Airlines American Airlines (NASDAQ: AAL) Go to a major American airport after these bankruptcies and these airlines (or their merged entities) are still taking people from Point A to Point B. * David and Tom just revealed what they believe are the ten best stocks for investors to buy right now… and United Airlines Holdings wasn't one of them! The Motley Fool recommends Delta Air Lines.
|
They were: United (NASDAQ: UAL) US Airways -- which filed twice before merging with American Air Canada (OTC: ACDVF) Delta (NYSE: DAL) Northwest Airlines -- which then merged with Delta Frontier Airlines American Airlines (NASDAQ: AAL) Go to a major American airport after these bankruptcies and these airlines (or their merged entities) are still taking people from Point A to Point B. On April 2, U.S. Sen. Richard Durbin (D-Illinois) went on CNBC and said this about the $25 billion bailout of the airline industry: "To say that we're rescuing shareholders -- you know, these stock prices have taken a beating -- I don't think there's any rescue that's come through for shareholders yet." 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.
|
They were: United (NASDAQ: UAL) US Airways -- which filed twice before merging with American Air Canada (OTC: ACDVF) Delta (NYSE: DAL) Northwest Airlines -- which then merged with Delta Frontier Airlines American Airlines (NASDAQ: AAL) Go to a major American airport after these bankruptcies and these airlines (or their merged entities) are still taking people from Point A to Point B. Yes, there's been some discomfort along the way. Yes, it's true airline stocks have fallen -- shares of major U.S. carriers are down at least 50% this year.
|
5853.0
|
2020-05-22 00:00:00 UTC
|
Is American Airlines Stock a Buy?
|
AAL
|
https://www.nasdaq.com/articles/is-american-airlines-stock-a-buy-2020-05-22
|
nan
|
nan
|
American Airlines Group (NASDAQ: AAL) and other airlines have been hit hard by the COVID-19 pandemic, with travel demand reduced to a trickle. American lost $2.2 billion in the first quarter and expects second-quarter results to be worse.
The pandemic has brought to a sudden end a decade-long period of expansion by the airlines and has raised questions about the industry's long-term future. The outlook is so bleak that Warren Buffett, who famously preaches investors should be greedy when others are fearful, joined the stampede heading for the exits by liquidating Berkshire Hathaway's massive stakes in American and other airlines.
Shares of American have lost 65% of their value year to date. As dangerous as it has been historically to go against Buffett, the stock is almost certainly set up to go higher in the quarters to come if the company is able to survive the pandemic crisis. The question is, will it survive?
Here is a look at American's prospects to determine whether it is a good buy today.
Shrinking to profitability
American, like its peers, is expecting a prolonged downturn in travel demand. Domestic leisure travel is likely to be the first to rebound, in part because it is the most easily stimulated by fare drops. It is also typically the lowest-margin business for airlines.
Large corporate accounts, where airlines typically make a substantial portion of their profits, are likely to come back well after tourists and non-corporate business travel. And international networks might never fully recover to pre-pandemic highs, in part because of shifting demand and in part because American and other large airlines are likely to take a conservative approach to growth and lean on foreign partners to help cover the globe.
Image source: American Airlines.
American, as part of the Oneworld alliance with British Airways, Spain's Iberia, Japan Airlines, and Qantas of Australia, among others, is well-positioned to offer customers global access. But if the industry is increasingly splitting international profits with foreign partners in years to come, it will crimp long-term earnings growth to some extent.
On the domestic front, American is preparing to shrink. Chief Financial Officer Derek Kerr during a virtual presentation to investors on May 19 said the carrier is "doing everything we can" to "right-size the airline from a cost perspective to make sure what we fly next year is cash positive."
American expects to cut operating costs and capital expenditures by $12 billion in 2020. The airline has retired four aircraft types and has brought system capacity down 80% in April and May and 70% for June. Depending on booking trends in late summer/early Fall, Kerr's comments suggest layoffs and more plane retirements could be on the horizon.
An ugly balance sheet, but enough cash to survive
American expects to have $11 billion in total liquidity by the end of 2020 and could try to raise additional capital in the third quarter backed by their aircraft or landing rights at what are typically congested airports.
The airline said during its first-quarter earnings release that it recently had its unencumbered assets appraised and believes it has $10 billion or more that can be used as collateral. American for now is focused on finalizing a $4.75 billion loan from the U.S. Treasury authorized under the CARES Act stimulus package, but expects to seek other options once its talks with the government are complete.
American as of quarter's end had $21.6 billion in long-term debt and total liabilities of more than $40 billion when factoring in pension obligations, operating leases, its loyalty program, and other liabilities. But the company has a lot of wiggle room to manage through that debt. American has a $1 billion, 364-day term loan facility that will need to be refinanced by March 2021, but beyond that has no non-aircraft debt maturities for more than 24 months.
Coming into 2020, American had expected significant free cash flow this year that was going to go toward paying down that industry-high debt load. That's now off the table, but if American can succeed in shrinking to profitability, as Kerr suggests, it is likely to plow whatever profits it generates into debt repayment.
Should you buy American?
Boeing CEO David Calhoun earlier this month turned heads when he said a major airline would "most likely" go out of business in 2020. He's since walked back those comments, but among the major airlines, American -- due to its debt and its late start to an industrywide period of restructuring -- was the carrier that sprung to mind when the statement was made.
I'm hopeful that all of the major airlines, American included, can survive without liquidity issues. But the airline's fate is largely based on the answers to questions about how long the pandemic will last, will there be a second wave, and what the post-pandemic economy will look like -- questions no one knows the answer to right now.
Airline Price to sales/price to earnings ratios data by YCharts
American shares are a lot more affordable than they were just a few months ago. And the airline is cheaper than any of the three other large U.S. carriers in terms of its multiple to sales and earnings. But given the way airline stocks have been knocked down by the pandemic, the entire sector is cheap, assuming traffic returns.
I believe American's management team is top notch, and in all but the worst-case scenarios, I expect them to remain airborne through this crisis. But given the uncertainty, and the valuations throughout the industry, I'd advise buying other airlines that would appear to have a clearer path forward.
For now, at least, American Airlines is not a stock I'd recommend buying.
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 April 16, 2020
Lou Whiteman owns shares of Berkshire Hathaway (B shares). The Motley Fool owns shares of and recommends Berkshire Hathaway (B shares) and recommends the following options: long January 2021 $200 calls on Berkshire Hathaway (B shares), short January 2021 $200 puts on Berkshire Hathaway (B shares), and short June 2020 $205 calls on Berkshire Hathaway (B shares). The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
American Airlines Group (NASDAQ: AAL) and other airlines have been hit hard by the COVID-19 pandemic, with travel demand reduced to a trickle. The outlook is so bleak that Warren Buffett, who famously preaches investors should be greedy when others are fearful, joined the stampede heading for the exits by liquidating Berkshire Hathaway's massive stakes in American and other airlines. Chief Financial Officer Derek Kerr during a virtual presentation to investors on May 19 said the carrier is "doing everything we can" to "right-size the airline from a cost perspective to make sure what we fly next year is cash positive."
|
American Airlines Group (NASDAQ: AAL) and other airlines have been hit hard by the COVID-19 pandemic, with travel demand reduced to a trickle. American as of quarter's end had $21.6 billion in long-term debt and total liabilities of more than $40 billion when factoring in pension obligations, operating leases, its loyalty program, and other liabilities. See the 10 stocks *Stock Advisor returns as of April 16, 2020 Lou Whiteman owns shares of Berkshire Hathaway (B shares).
|
American Airlines Group (NASDAQ: AAL) and other airlines have been hit hard by the COVID-19 pandemic, with travel demand reduced to a trickle. For now, at least, American Airlines is not a stock I'd recommend buying. The Motley Fool owns shares of and recommends Berkshire Hathaway (B shares) and recommends the following options: long January 2021 $200 calls on Berkshire Hathaway (B shares), short January 2021 $200 puts on Berkshire Hathaway (B shares), and short June 2020 $205 calls on Berkshire Hathaway (B shares).
|
American Airlines Group (NASDAQ: AAL) and other airlines have been hit hard by the COVID-19 pandemic, with travel demand reduced to a trickle. The pandemic has brought to a sudden end a decade-long period of expansion by the airlines and has raised questions about the industry's long-term future. That's right -- they think these 10 stocks are even better buys.
|
5854.0
|
2020-05-21 00:00:00 UTC
|
Southwest Airlines Will Fly Again
|
AAL
|
https://www.nasdaq.com/articles/southwest-airlines-will-fly-again-2020-05-22
|
nan
|
nan
|
A history of bankruptcies in the airline industry has usually kept quality-focused investors away. It's no surprise that the capital-intensive, cyclical nature of the business lends itself to wild swings in stock prices during unexpected economic shocks. Southwest Airlines (NYSE: LUV), currently the most valuable U.S. carrier by market capitalization, has seen its stock fall 49% during the last three months as the coronavirus pandemic has essentially halted passenger air travel worldwide.
According to the TSA, air travel demand was down 92% in the first 18 days of May compared to the same time period last year. This broad-based drop has caused Southwest to post a $94 million loss in the quarter ended March 31st, the company's first quarterly loss since Q3 2011. The uncertainty of when things will return to any level of normalcy is seriously jeopardizing Southwest's impressive streak of annual profitability, which reached 47 consecutive years last year. Fiscal year 2020 could very well be the end of that. To make matters worse, CEO Gary Kelly warned of the possibility of "a dramatically smaller airline" if things do not improve. Southwest has never laid off an employee in its entire history. These are truly unprecedented times.
Image Source: Getty Images
Government support
In March, the federal government passed the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) to save the struggling economy. As part of this package, the U.S. airline industry was authorized to receive $25 billion in grants and $25 billion in loans and loan guarantees. Time will tell if the seemingly astronomical dollar amounts will help smooth the recovery. Delta Air Lines (NYSE: DAL) CEO Ed Bastian thinks it will be two or three years until business gets back to pre-coronavirus levels.
During adverse economic scenarios like the one we are currently facing, the issue that always presents itself is whether or not certain industries and companies deserve any government assistance. Known for having massive fixed costs and needing continuous reinvestment to grow, the airline business was characterized best when Warren Buffett once called it a "disaster for capital." Although an investor in airlines since 2016, the Oracle of Omaha has since reversed course after exiting his entire positions in Southwest, Delta, American Airlines (NASDAQ: AAL), and United Airlines (NASDAQ: UAL).
As long-term investors, we are focused on owning those rare high-quality businesses. But high-quality can mean something different for everyone. In my view, it's a company that can not only survive tough economic circumstances, but that can actually thrive and come out stronger on the other side. Therefore, it was really a head-scratcher to see Buffett buy airline stocks after years of disowning the industry. Sure, in good times everyone is happy and returns can be favorable. It's times like now that force astute analysts to reassess their investment philosophies and redefine what quality means to them.
Fasten your seatbelt
After the horrific September 11th, 2001 terrorist attacks, it was unfathomable to think that air travel would ever get back to the way it was before. It wasn't until 2004 that U.S. passenger miles had surpassed levels reached in 2000. As this article suggests, the airline industry will certainly bounce back. It may not even happen when a successful vaccine for the coronavirus is created, but it will happen eventually. As unattractive as they may be from an investing perspective, airlines have done a wonderful job at bringing the world closer together. I have no doubt that this will be the case again.
On Tuesday, Southwest said that new bookings are beginning to outpace cancellations, which could signal a turning point for the company and industry. Reduced capacity, significantly lowered revenue forecasts, and an unknown resolution to the current situation will lead to a turbulent ride for the stock, regardless of how enticing the valuation looks today. Southwest Airlines has had a stellar operating history, but there's just too much uncertainty in the near-term to add the stock to your portfolio.
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 April 16, 2020
Neil Patel 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.
|
Although an investor in airlines since 2016, the Oracle of Omaha has since reversed course after exiting his entire positions in Southwest, Delta, American Airlines (NASDAQ: AAL), and United Airlines (NASDAQ: UAL). Southwest Airlines (NYSE: LUV), currently the most valuable U.S. carrier by market capitalization, has seen its stock fall 49% during the last three months as the coronavirus pandemic has essentially halted passenger air travel worldwide. Known for having massive fixed costs and needing continuous reinvestment to grow, the airline business was characterized best when Warren Buffett once called it a "disaster for capital."
|
Although an investor in airlines since 2016, the Oracle of Omaha has since reversed course after exiting his entire positions in Southwest, Delta, American Airlines (NASDAQ: AAL), and United Airlines (NASDAQ: UAL). This broad-based drop has caused Southwest to post a $94 million loss in the quarter ended March 31st, the company's first quarterly loss since Q3 2011. The Motley Fool recommends Delta Air Lines and Southwest Airlines.
|
Although an investor in airlines since 2016, the Oracle of Omaha has since reversed course after exiting his entire positions in Southwest, Delta, American Airlines (NASDAQ: AAL), and United Airlines (NASDAQ: UAL). Southwest Airlines (NYSE: LUV), currently the most valuable U.S. carrier by market capitalization, has seen its stock fall 49% during the last three months as the coronavirus pandemic has essentially halted passenger air travel worldwide. 10 stocks we like better than Southwest Airlines When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen.
|
Although an investor in airlines since 2016, the Oracle of Omaha has since reversed course after exiting his entire positions in Southwest, Delta, American Airlines (NASDAQ: AAL), and United Airlines (NASDAQ: UAL). A history of bankruptcies in the airline industry has usually kept quality-focused investors away. These are truly unprecedented times.
|
5855.0
|
2020-05-21 00:00:00 UTC
|
These 6% Dividends Look Safe (but owning them will cost you)
|
AAL
|
https://www.nasdaq.com/articles/these-6-dividends-look-safe-but-owning-them-will-cost-you-2020-05-21
|
nan
|
nan
|
By Michael Foster
Volatility has taken over, and if youaEURtmre like most folks, youaEURtmre wondering where to find the safe dividends you need to sustain your savingsaEUR"and income streamaEUR"as this pandemic drags on.
ThereaEURtms one intriguing alternative you may not have thought of: senior loans, also called floating-rate loans. Because theyaEURtmre far up the corporate food chain, they offer a layer of safety in the event of bankruptcy, something thataEURtms on every investoraEURtms mind these days.
In addition, senior loans offer yields of 6%, on average, making them an income investoraEURtms dream, too. But are these loansaEUR"which I only recommend holding through a closed-end fund (CEF)aEUR"a buy today?
LetaEURtms answer that now.
How Senior Loans Protect Your Investment
How safe are senior loans? Think of it this way: when a company liquidates, thereaEURtms a long line of people who will be paid out for their investment and a structure saying who gets paid first.
With this structure, senior loan holders are made whole before owners of a companyaEURtms corporate bonds (aEURoesubordinated debtaEUR above), convertible bonds and preferred stocks (aEURoehybridsaEUR), and common shares (aEURoeequityaEUR). ThataEURtms why, for instance, when American Airlines went bankrupt in 2011 and became the new American Airlines (AAL), owners of the old AA stock got basically nothing while many of the companyaEURtms lenders lost little or no money.
ThataEURtms how it works on paper, anyway; the reality is a bit more complicated.
The Fed Blurs the Picture
Now letaEURtms talk performance and compare the index funds covering investment-grade corporate bonds and floating-rate loans. For corporates, that would be the iShares Investment Grade Corporate Bond ETF (LQD); for floating rates, weaEURtmll use the iShares Floating Rate Bond ETF (FLOT). We see that both are down about the same amount year to date, but theyaEURtmre down much less than stocks.
Bond ETFs Float Through the Crisis
These movements make sense. FLOT is less volatile than the bond fund, since itaEURtms less likely to suffer markdowns from defaults, and both ETFs are doing much better than common stocks because stocks have a higher risk of going to zero as bankruptcies rise.
ThataEURtms why both LQD and FLOT were decent hedges before the crisisaEUR"and they remain good ones if you think COVID-19 will result in widespread bankruptcies at very large corporations. ThereaEURtms only one problem: the Federal Reserve has made it clear that it will not let that happen. And one of the biggest clichA(c)s on Wall Street is a clear command: donaEURtmt fight the Fed!
Why not? Because going against Fed policy results in inferior returns over the long haul, and betting that the Fed will let bankruptcies spike over the next year will result in meager returns.
The last time there was a clear-cut situation where the Fed was basically telling you not to buy senior loans was in 2013, when the central bank pumped over a trillion dollars into the economy through its quantitative easing program (which was much smaller than the over $2 trillion the Fed and Treasury are pumping into the US economy right now). Back then, fighting the Fed with FLOT (in orange below) yielded a return of basically zero:
No LossaEUR"and No Gain
Sure, you didnaEURtmt lose money, but you also missed out on the massive gains you could have bagged by rolling with the FedaEURtms line and buying into the economy through stocks. This year seems to be panning out quite similarly, but with an important twist.
A Better Alternative
The world today is nothing like it was in 2013; with a global pandemic, simply betting on all stocks going up while many companies are being forced to shut down will result in a portfolio with a lot of losers mixed in with the winners. ItaEURtms one reason why, throughout this pandemic, IaEURtmve been banging the drum for a return to value investingaEUR"and the funds that know which value-investing tools to employ.
ThataEURtms a big reason why in mid-March, I suggested looking at the Boulder Growth & Income Fund (BIF), which invests in Warren BuffettaEURtms Berkshire Hathaway (BRK.A) and other Buffett-approved stocks, like JP Morgan Chase & Co. (JPM) and American Express (AXP).
Value Investing Pays Off in a Crisis
This value-investing fund shot up 10% in no time. Today, with a 17% discount to NAV and a 4.4% yield, BIF hasnaEURtmt attracted nearly as many buyers as it likely will when investors realize they can buy a fund that carefully chooses which stocks to buy and which to avoidaEUR"without the humdrum low returns of a floating-rate fund. That makes a huge difference over the long haul:
BIF a Big Outperformer
And you can get set for BIFaEURtms next upward move now, without being invested in the overvalued companies most likely to go bust due to the pandemic.
5 MUCH Better Buys Than BIF (Average Yield: 8%!)
If youaEURtmre interested in CEFs, your timing couldnaEURtmt be better, because IaEURtmve recently released myA 5 very best buysA in the space. They throw offA sparkling 8% average payouts!A PLUS they trade at huge discounts to the value of their portfolios as I write this, but unlike BIF, their discount windows regularly slam shutaEUR"propelling their share prices to HUGE gains.
Just how cheap are these 5 income titans?
Big enough to igniteA 20%+ gains in the next 12 months,A even if the market only moves slightly higher from here. And if we do get a downturn, these big discounts help keep our 5 fundsaEURtm market prices stable.
And weaEURtmll enjoy their massive 8% dividends the entire time!A
I canaEURtmt wait to show you these 5 aEURoecrisis-proofaEUR 8%-paying CEFs.A Everything you need to know is waiting for you here: names, tickers, buy-under prices, complete dividend historiesaEUR"the works!
One thing you can count on? If you pass up this opportunity now, youaEURtmll surely be kicking yourself in 12 months. DonaEURtmt miss out on the dividends and upside on offer with these 5 incredible funds.A Go right here to get everything you need to know.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
ThataEURtms why, for instance, when American Airlines went bankrupt in 2011 and became the new American Airlines (AAL), owners of the old AA stock got basically nothing while many of the companyaEURtms lenders lost little or no money. The Fed Blurs the Picture Now letaEURtms talk performance and compare the index funds covering investment-grade corporate bonds and floating-rate loans. A Better Alternative The world today is nothing like it was in 2013; with a global pandemic, simply betting on all stocks going up while many companies are being forced to shut down will result in a portfolio with a lot of losers mixed in with the winners.
|
ThataEURtms why, for instance, when American Airlines went bankrupt in 2011 and became the new American Airlines (AAL), owners of the old AA stock got basically nothing while many of the companyaEURtms lenders lost little or no money. In addition, senior loans offer yields of 6%, on average, making them an income investoraEURtms dream, too. With this structure, senior loan holders are made whole before owners of a companyaEURtms corporate bonds (aEURoesubordinated debtaEUR above), convertible bonds and preferred stocks (aEURoehybridsaEUR), and common shares (aEURoeequityaEUR).
|
ThataEURtms why, for instance, when American Airlines went bankrupt in 2011 and became the new American Airlines (AAL), owners of the old AA stock got basically nothing while many of the companyaEURtms lenders lost little or no money. For corporates, that would be the iShares Investment Grade Corporate Bond ETF (LQD); for floating rates, weaEURtmll use the iShares Floating Rate Bond ETF (FLOT). ThataEURtms a big reason why in mid-March, I suggested looking at the Boulder Growth & Income Fund (BIF), which invests in Warren BuffettaEURtms Berkshire Hathaway (BRK.A) and other Buffett-approved stocks, like JP Morgan Chase & Co. (JPM) and American Express (AXP).
|
ThataEURtms why, for instance, when American Airlines went bankrupt in 2011 and became the new American Airlines (AAL), owners of the old AA stock got basically nothing while many of the companyaEURtms lenders lost little or no money. In addition, senior loans offer yields of 6%, on average, making them an income investoraEURtms dream, too. With this structure, senior loan holders are made whole before owners of a companyaEURtms corporate bonds (aEURoesubordinated debtaEUR above), convertible bonds and preferred stocks (aEURoehybridsaEUR), and common shares (aEURoeequityaEUR).
|
5856.0
|
2020-05-21 00:00:00 UTC
|
The U.S. Global JETS ETF Is a Controversial Pick That Will Pay Off
|
AAL
|
https://www.nasdaq.com/articles/the-u.s.-global-jets-etf-is-a-controversial-pick-that-will-pay-off
|
nan
|
nan
|
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The airline industry is one of this year’s epicenters for equity retrenchment at the hands of the novel coronavirus. Just look at the U.S. Global Jets ETF (NYSEARCA:JETS). The JETS ETF, the lone exchange-traded fund dedicated to airline equities, is lower by 57.50% year-to-date.
Source: Shutterstock
Perhaps the more troubling statistic is that JETS isn’t showing much movement off its March lows. Its approximate-17% gain off those levels is roughly half the move notched by the less risky S&P 500 over the same period.
Currently, the best thing that can be said about the JETS ETF and its components is that these are contrarian ideas because it’s difficult to find positive news about the industry. If the price action among the major carriers doesn’t convince investors about that, stocks such as Boeing (NASDAQ:BA) and General Electric (NYSE:GE) probably should.
7 Sluggish Stocks Hit Hard by Coronavirus This Earnings Season
GE, one the largest builders of aircraft engines, recently swooned to a three-decade low as experts speculate it will take several years for the airline industry to resemble its pre-coronavirus self. Carriers are scrapping routes, grounding jets and canceling orders for new equipment — all signs that Covid-19 is materially impacting the economically sensitive airline industry.
Been Here Before
“Good news” is in the eye of the beholder when it comes downtrodden names, such as American Airlines (NASDAQ:AAL), Delta Air Lines (NYSE:DAL), Southwest Airlines (NYSE:LUV) and United Airlines (NASAQ:UAL), but there is some.
Those companies, which combine for about 40% of the JETS roster, are eligible for government assistance under the CARES Act, something some members of the quartet are taking Uncle Sam up on. That news has been out in the market for awhile, but it’s also worth remembering that if there’s an industry that’s familiar with navigating crises, it’s airlines.
“The decline in demand as a result of the spread of COVID-19 could end up being double the decline from the severe acute respiratory syndrome (SARS) epidemic in 2002 and 2003, according to travel research firm Tourism Economics,” said U.S. Global, JETS’ issuer, in a research note. “This implies 16 million lost passengers, which is more than the multi-year impact following the 9/11 terrorist attacks.”
Yes, there was some government assistance involved following 9/11, but in the span of essentially a few months, airlines grappled with the worst terrorist attack on record and a pandemic (SARS) and eventually emerged stronger. History doesn’t always repeat, but it often rhymes and even before Covid-19, air travel established a history of suffering big bruises during crises only to later emerge stronger.
Since 1980, passenger carries dealt with at least two oil crises, the 1991 Gulf War, which sent crude prices soaring, 9/11, SARS and the global financial crisis.
“[Covid-19] is not the first major headwind that global airlines have been up against,” notes U.S. Global. “The truth is that air travel has proved to be remarkably resilient to many external shocks, whether they be oil crises, wars, terrorist attacks or, yes, pandemics.”
Focusing on some near-term green shoots, United and Southwest recently said they are experiencing fewer cancellations for July. Obviously, there’s a difference between decreasing cancellations and increasing bookings, but at this point in the coronavirus cycle, airlines’ recovery has to start somewhere and perhaps pared cancellations is the place.
The Bottom Line on the JETS ETF
There are some other anecdotes bolstering the case for JETS, including the fact that the oversold condition on the NYSEARCA Global Airlines Index is currently reminiscent of what was seen in late September 2001.
Additionally, airlines stocks have a propensity to rebound rapidly from their biggest slides. Over the past 11 years, the three largest slumps notched by the NYSEARCA Global Airlines Index were followed by average rallies of 93% and in all three instances, it took less than two years for that upside to materialize.
No guarantees JETS is primed for that type of upswing again, but the ETF eliminates the burden of picking the best idea in a troubled industry and any incremental good news, be it about the economy or industry itself, could stir near-term gains for the airline fund.
Todd Shriber has been an InvestorPlace contributor since 2014. As of this writing, he did not hold a position in any of the aforementioned securities.
The post The U.S. Global JETS ETF Is a Controversial Pick That Will Pay Off 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.
|
Been Here Before “Good news” is in the eye of the beholder when it comes downtrodden names, such as American Airlines (NASDAQ:AAL), Delta Air Lines (NYSE:DAL), Southwest Airlines (NYSE:LUV) and United Airlines (NASAQ:UAL), but there is some. If the price action among the major carriers doesn’t convince investors about that, stocks such as Boeing (NASDAQ:BA) and General Electric (NYSE:GE) probably should. 7 Sluggish Stocks Hit Hard by Coronavirus This Earnings Season GE, one the largest builders of aircraft engines, recently swooned to a three-decade low as experts speculate it will take several years for the airline industry to resemble its pre-coronavirus self.
|
Been Here Before “Good news” is in the eye of the beholder when it comes downtrodden names, such as American Airlines (NASDAQ:AAL), Delta Air Lines (NYSE:DAL), Southwest Airlines (NYSE:LUV) and United Airlines (NASAQ:UAL), but there is some. InvestorPlace - Stock Market News, Stock Advice & Trading Tips The airline industry is one of this year’s epicenters for equity retrenchment at the hands of the novel coronavirus. Global Jets ETF (NYSEARCA:JETS).
|
Been Here Before “Good news” is in the eye of the beholder when it comes downtrodden names, such as American Airlines (NASDAQ:AAL), Delta Air Lines (NYSE:DAL), Southwest Airlines (NYSE:LUV) and United Airlines (NASAQ:UAL), but there is some. The Bottom Line on the JETS ETF There are some other anecdotes bolstering the case for JETS, including the fact that the oversold condition on the NYSEARCA Global Airlines Index is currently reminiscent of what was seen in late September 2001. No guarantees JETS is primed for that type of upswing again, but the ETF eliminates the burden of picking the best idea in a troubled industry and any incremental good news, be it about the economy or industry itself, could stir near-term gains for the airline fund.
|
Been Here Before “Good news” is in the eye of the beholder when it comes downtrodden names, such as American Airlines (NASDAQ:AAL), Delta Air Lines (NYSE:DAL), Southwest Airlines (NYSE:LUV) and United Airlines (NASAQ:UAL), but there is some. InvestorPlace - Stock Market News, Stock Advice & Trading Tips The airline industry is one of this year’s epicenters for equity retrenchment at the hands of the novel coronavirus. Global Jets ETF (NYSEARCA:JETS).
|
5857.0
|
2020-05-20 00:00:00 UTC
|
American Airlines Stock Is a Bargain for Long-Term Investors
|
AAL
|
https://www.nasdaq.com/articles/american-airlines-stock-is-a-bargain-for-long-term-investors-2020-05-20
|
nan
|
nan
|
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
American Airlines (NASDAQ:AAL) may prove to be among the most resilient of the hard hit travel sector. But while it could suffer significantly in the near term, there is still some hope left for AAL stock to rise again.
Source: GagliardiPhotography / Shutterstock.com
Things remain gloomy for the airline sector amid the novel coronavirus pandemic that has left airplanes sitting idle on tarmacs around the world. The S&P Supercomposite Airlines Industry Index has fallen about 60% since the market peak of Feb. 20, when a broad global selloff of equities began. By comparison, the S&P 500 Index is down about 12% over the same period.
Famed investor Warren Buffett has dumped all his airline holdings, and Boeing (NYSE:BA) Chief Executive Officer David Calhoun has predicted that at least one major U.S. carrier will be kaput by year’s end. Empty planes, rising gas prices and mounting debt loads have many industry observers sounding the death knell for the sector as a whole. Industry trade group Airlines for America claims that U.S. carriers are losing $10 billion a month. As the largest U.S. airline with the most international routes, American Airlines has become the poster child for an industry in crisis.
Yet, reports of American Airlines’ demise may be premature. Despite being among the hardest hit sectors during the pandemic lockdown, glimmers of hope are starting to emerge for the airline industry. Shares of airlines soared on May 18 following positive data released by the Transportation Security Administration (TSA) that showed a growing number of airline passengers passing through its security checkpoints. The data suggests a post-Covid-19 recovery has already taken root. Responding to the TSA numbers, the U.S. Global Jets ETF (NYSEARCA:JETS) rose 11.6%. Shares of American Airlines jumped 9.2% on the news after closing May 14 at a 52-week low of $8.25 per share. Other airline stocks, including Delta Air Lines (NYSE:DAL) and United Airlines (NASDAQ:UAL), also rose on the TSA news.
7 Financial Stocks with Dependable Dividends
More good news for the industry came on May 19, when Southwest Airlines (NYSE:LUV) said it was adding several domestic flights in June as demand for air travel gathers steam. Southwest forecasts that its annual capacity decline will be 45% in June, less severe than May’s annualized capacity decline of 70%. While it is still too soon to predict a V-shaped recovery for the airline industry, signs are emerging that the worst could be behind the major U.S. carriers.
Upside Potential
Value investors who can stomach some turbulence in the near-term should view AAL stock as a cheap long-term play at current levels. Consider that the consensus view of 20 Wall Street analysts is to “hold” the stock at the present time. The average 12-month price target on AAL stock is $16.88, suggesting that it has upside potential of 70%. The high price target for it is $34.00, which would see it more than triple from current levels of under $10 per share.
Investors should also consider that American Airlines is taking several steps to cut costs and position itself for success on the upswing once the U.S. economy fully reopens. Since mid-March, the Dallas-based carrier has cut 80% of its international passenger flights, expanded its cargo-only flights to Asia-Pacific where reopening is ahead of North America, enhanced its customer loyalty program by offering travelers 500 extra bonus miles under its “AAdvantage” loyalty program and adjusted its international routes to focus on more heavily trafficked and profitable destinations.
While these steps are unlikely to spare the airline short-term pain, they should help position the carrier (and by extension AAL stock) to rebound once the economic recovery from Covid-19 is in full stride — capitalizing on pent-up demand among travellers.
Government Support
While the current environment is bad, potential investors should also keep in mind that American Airlines is also receiving support from the U.S. government. The airline has been approved for $5.8 billion in financial assistance from the U.S. Department of the Treasury under the “Payroll Support Program (PSP)” that was created through the Coronavirus Aid, Relief and Economic Security (CARES) Act. The money is being used to cover salaries and benefits and is comprised of a direct grant of $4.1 billion, and a low-interest loan of $1.7 billion.
In addition to the $5.8 billion, American Airlines has applied for a loan directly from the U.S. Treasury worth $4.75 billion. This money should keep the airline afloat through the end of September, at which point reopening among U.S. states should be at its peak and we could be close to a vaccine against Covid-19.
As the largest U.S. carrier, and with so much taxpayer money invested already, it is unlikely that the government would let American Airlines go down without a fight. “Too big to fail” may be a cliche, but it could apply to an airline that is not only the biggest in the U.S., but the largest in the entire world as measured by fleet size, passengers and revenue passenger miles. American Airlines carries more than 200 million people a year and is a major employer with nearly 130,000 staff stationed around the world. A collapse of American Airlines would negatively impact both the aviation industry in the U.S. and the wider world.
American Airlines has been here before. After airplanes were used as weapons during the 9/11 terrorist attacks, industry analysts predicted that the airline sector would never recover. AAL stock took a hit following the attacks, falling as low as $1.58 a share. But American Airlines, and the broader industry, adapted, implemented new security measures and recovered. The stock climbed near $60 a share in 2018.
The Bottom Line on AAL Stock
While it is true that American Airlines’ stock is vulnerable during the current Covid-19 pandemic lockdown, it would be unwise to bet against the carrier long-term. Investors with a time horizon of five years or longer should look at AAL stock as a bargain at its current price and consider the growth potential that will surely be unlocked in the coming years once the coronavirus pandemic is behind us all.
As of this writing, Joel Baglole held shares of American Airlines.
The post American Airlines Stock Is a Bargain for Long-Term Investors 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.
|
While these steps are unlikely to spare the airline short-term pain, they should help position the carrier (and by extension AAL stock) to rebound once the economic recovery from Covid-19 is in full stride — capitalizing on pent-up demand among travellers. InvestorPlace - Stock Market News, Stock Advice & Trading Tips American Airlines (NASDAQ:AAL) may prove to be among the most resilient of the hard hit travel sector. But while it could suffer significantly in the near term, there is still some hope left for AAL stock to rise again.
|
InvestorPlace - Stock Market News, Stock Advice & Trading Tips American Airlines (NASDAQ:AAL) may prove to be among the most resilient of the hard hit travel sector. But while it could suffer significantly in the near term, there is still some hope left for AAL stock to rise again. Upside Potential Value investors who can stomach some turbulence in the near-term should view AAL stock as a cheap long-term play at current levels.
|
InvestorPlace - Stock Market News, Stock Advice & Trading Tips American Airlines (NASDAQ:AAL) may prove to be among the most resilient of the hard hit travel sector. The Bottom Line on AAL Stock While it is true that American Airlines’ stock is vulnerable during the current Covid-19 pandemic lockdown, it would be unwise to bet against the carrier long-term. But while it could suffer significantly in the near term, there is still some hope left for AAL stock to rise again.
|
Investors with a time horizon of five years or longer should look at AAL stock as a bargain at its current price and consider the growth potential that will surely be unlocked in the coming years once the coronavirus pandemic is behind us all. InvestorPlace - Stock Market News, Stock Advice & Trading Tips American Airlines (NASDAQ:AAL) may prove to be among the most resilient of the hard hit travel sector. But while it could suffer significantly in the near term, there is still some hope left for AAL stock to rise again.
|
5858.0
|
2020-05-20 00:00:00 UTC
|
Why Delta Air Lines, American Airlines, and Southwest Airlines Stocks Are Up Wednesday
|
AAL
|
https://www.nasdaq.com/articles/why-delta-air-lines-american-airlines-and-southwest-airlines-stocks-are-up-wednesday-2020
|
nan
|
nan
|
What happened
Airline stocks were getting a second wind in early afternoon trading Wednesday, with shares of Delta Air Lines (NYSE: DAL) leading the charge with a 4.1% gain as of 12:15 p.m. EDT today. Southwest Airlines (NYSE: LUV) stock and American Airlines Group (NASDAQ: AAL) were not far behind, climbing 4% and 2.5%, respectively. Credit for the surge must go to Delta.
So what
Speaking on Fox Business this morning, Delta CEO Edward Bastian predicted that after months of flight reductions, Delta will probably execute a turn in the near future and begin slowly increasing capacity again in June and July.
Currently, the air travel business remains slow, and Delta's load factor is about 35% to 40%, Bastian said. But the company believes it can grow to 60% even if that means keeping middle seats open to promote social distancing on its airplanes.
Image source: Getty Images.
Bastian added, "Once we get close to 60% on an individual route, that'll be the trigger for us to add more planes into the system." Judging from current trends, he believes the company will probably add about 200 flights in June, and then 200 or 300 more in July. And this is a trend he sees continuing over the next 12 to 18 months.
Now what
Bastian was speaking about domestic travel trends. He cautions that international traffic, which is subject to travel bans and advisories from multiple countries that could slow a recovery, probably won't start coming back until 2021.
Still, if a revival is going to happen, domestic travel is probably the place Delta would like to see it happen first. According to data from S&P Global Market Intelligence, in ordinary years, Delta derives more than 70% of its annual revenue from domestic flights, and less than 30% from international travel.
And if what holds true for Delta applies to other airlines, then American Airlines and Southwest could benefit from this trend even more. American does 73.5% of its business domestically, and Southwest more than 97%!
For that matter, even United Airlines Holdings (NASDAQ: UAL), the U.S. carrier most exposed to international business (37.5% of revenue comes from Atlantic, Pacific, and Latin American travel), should be hoping for a revival of U.S. domestic traffic most of all.
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 April 16, 2020
Rich Smith 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.
|
Southwest Airlines (NYSE: LUV) stock and American Airlines Group (NASDAQ: AAL) were not far behind, climbing 4% and 2.5%, respectively. What happened Airline stocks were getting a second wind in early afternoon trading Wednesday, with shares of Delta Air Lines (NYSE: DAL) leading the charge with a 4.1% gain as of 12:15 p.m. EDT today. He cautions that international traffic, which is subject to travel bans and advisories from multiple countries that could slow a recovery, probably won't start coming back until 2021.
|
Southwest Airlines (NYSE: LUV) stock and American Airlines Group (NASDAQ: AAL) were not far behind, climbing 4% and 2.5%, respectively. What happened Airline stocks were getting a second wind in early afternoon trading Wednesday, with shares of Delta Air Lines (NYSE: DAL) leading the charge with a 4.1% gain as of 12:15 p.m. EDT today. The Motley Fool recommends Delta Air Lines and Southwest Airlines.
|
Southwest Airlines (NYSE: LUV) stock and American Airlines Group (NASDAQ: AAL) were not far behind, climbing 4% and 2.5%, respectively. So what Speaking on Fox Business this morning, Delta CEO Edward Bastian predicted that after months of flight reductions, Delta will probably execute a turn in the near future and begin slowly increasing capacity again in June and July. And if what holds true for Delta applies to other airlines, then American Airlines and Southwest could benefit from this trend even more.
|
Southwest Airlines (NYSE: LUV) stock and American Airlines Group (NASDAQ: AAL) were not far behind, climbing 4% and 2.5%, respectively. Now what Bastian was speaking about domestic travel trends. For that matter, even United Airlines Holdings (NASDAQ: UAL), the U.S. carrier most exposed to international business (37.5% of revenue comes from Atlantic, Pacific, and Latin American travel), should be hoping for a revival of U.S. domestic traffic most of all.
|
5859.0
|
2020-05-20 00:00:00 UTC
|
Is American Airlines Really Bound for Bankruptcy?
|
AAL
|
https://www.nasdaq.com/articles/is-american-airlines-really-bound-for-bankruptcy-2020-05-20
|
nan
|
nan
|
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Contrarian investors like to buy stocks when the overall sentiment is pessimistic. If that’s your approach to investing, then American Airlines (NASDAQ:AAL) would undoubtedly fall into this category. Indeed, pessimism and fear are at fever-pitch levels surrounding AAL stock at the moment. In fact, a particular group of traders are actually betting that American Airlines will file for bankruptcy in the near future.
Source: GagliardiPhotography / Shutterstock.com
This state of affairs might have been unimaginable six months ago. Yet, the spread of the novel coronavirus has changed everything. The demand for air travel has been decimated by stay-at-home mandates. But should AAL stockholders really be concerned about the bankruptcy buzz?
Sour Sentiment
Some market participants have suggested that the economy is returning back to normal. This might be true to some extent, but not all segments of the economy are recovering at the same pace.
In truth, there are industries that will take a long time to recover to their pre-coronavirus levels. And unfortunately for AAL stockholders, the aviation industry appears to be among these industries.
Even the ultra-patient investor Warren Buffett, whose favorite holding time is “forever,” gave up on the airline industry. In a highly publicized and perhaps unexpected turn of events, the Berkshire Hathaway (NYSE:BRK.A, NYSE:BRK.B) CEO sold a large quantity of his airline shares.
10 Lithium Stocks to Buy Despite the Market's Irrationality
Buffett’s shares of AAL stock were included in that massive selloff. The Oracle of Omaha didn’t provide much specific guidance for investors, though. Buffett did, however, say that “The airline business, and I may be wrong, and I hope I’m wrong, changed in a major way.”
He’s probably not wrong. At around the same time as Buffett’s airline-shares dumping, Boeing (NYSE:BA) Chief Executive David Calhoun made a dire prediction. He claimed that it will take up to five years for the airline industry to return to how it was prior to the Covid-19 outbreak.
Is Chapter 11 Inevitable?
Calhoun also made the financial headlines by predicting that by the end of 2020, a major airline will “most likely” have gone out of business. This bleak outlook, coming from the chief of Boeing, should send shivers down the spine of AAL stockholders.
While it’s true that Calhoun didn’t mention American Airlines by name, it’s hard not to think of that particular company. As InvestorPlace contributor Thomas Niel suggests, American Airlines’ rate of cash burn is staggering:
“This airline alone anticipates losing $70 million a day through June. In other words, over $2 billion a month, or $6 billion a quarter. Losses are expected to come down this summer, but will still be in the billions per month.”
Niel recommends a wait-and-see approach with AAL stock, but not everyone is willing to be patient with this embattled company. Berenberg analyst Adrian Yanoshik concisely explains the trading community’s main issue with American Airlines, saying, “I could give you other reasons, but when you peel the onion back on those sub-reasons, they tend to end up with: They have more debt.”
That’s $34 billion worth of debt, to be specific. It’s more debt than any of the other major American airline companies have. And, it’s causing a certain group of financial traders to wager that American Airlines will, indeed, go bankrupt.
Traders of credit default swaps, if you can believe it, have placed the likelihood of American Airlines defaulting at almost 100%. Within a span of three months, the price of five-year credit default swaps on American Airlines have increased by over 4,000%.
So, if you choose to buy AAL stock now and hold it for the long term, you’re basically betting against those traders. And against Warren Buffett, whose track record isn’t too shabby.
The Takeaway on AAL Stock
Unless you have the wisdom of Warren Buffett or the sophistication of credit default swap traders, you might just want to avoid the stock altogether. There are plenty of other companies to look at now, many of which aren’t at risk of bankruptcy.
David Moadel has provided compelling content – and crossed the occasional line – on behalf of Crush the Street, Market Realist, TalkMarkets, Finom Group, Benzinga, and (of course) InvestorPlace.com. He also serves as the chief analyst and market researcher for Portfolio Wealth Global and hosts the popular financial YouTube channel Looking at the Markets. As of this writing, he did not hold a position in any of the aforementioned securities.
The post Is American Airlines Really Bound for Bankruptcy? 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.
|
Losses are expected to come down this summer, but will still be in the billions per month.” Niel recommends a wait-and-see approach with AAL stock, but not everyone is willing to be patient with this embattled company. If that’s your approach to investing, then American Airlines (NASDAQ:AAL) would undoubtedly fall into this category. Indeed, pessimism and fear are at fever-pitch levels surrounding AAL stock at the moment.
|
If that’s your approach to investing, then American Airlines (NASDAQ:AAL) would undoubtedly fall into this category. Indeed, pessimism and fear are at fever-pitch levels surrounding AAL stock at the moment. But should AAL stockholders really be concerned about the bankruptcy buzz?
|
The Takeaway on AAL Stock Unless you have the wisdom of Warren Buffett or the sophistication of credit default swap traders, you might just want to avoid the stock altogether. If that’s your approach to investing, then American Airlines (NASDAQ:AAL) would undoubtedly fall into this category. Indeed, pessimism and fear are at fever-pitch levels surrounding AAL stock at the moment.
|
The Takeaway on AAL Stock Unless you have the wisdom of Warren Buffett or the sophistication of credit default swap traders, you might just want to avoid the stock altogether. If that’s your approach to investing, then American Airlines (NASDAQ:AAL) would undoubtedly fall into this category. Indeed, pessimism and fear are at fever-pitch levels surrounding AAL stock at the moment.
|
5860.0
|
2020-05-20 00:00:00 UTC
|
Australian state passes law to jail executives over mine deaths
|
AAL
|
https://www.nasdaq.com/articles/australian-state-passes-law-to-jail-executives-over-mine-deaths-2020-05-20
|
nan
|
nan
|
MELBOURNE, May 20 (Reuters) - Australia's Queensland state passed new mine safety laws on Wednesday that would see company executives jailed for up to 20 years if workers die due to criminal negligence, following a spate of mine deaths.
The legislation extended industrial manslaughter laws to the mining sector, as part of a package of safety and other reforms for an industry that employees 50,000 people in the state.
"This offence sends the clear message to employers and senior officers that the safety and health of their workers is paramount," the state's mines minister Anthony Lynham said in a statement.
"In the past two years we've had eight workers die, and a gas explosion in an underground coal mine has put five miners in hospital. It's not acceptable," he said.
Four of the five workers injured in the explosion at Anglo American's AAL.L Grosvenor coal mine on May 6 are still in a critical condition.
Anglo American declined to comment on the new legislation. The Grosvenor mine remains closed while the company and regulators investigate the incident.
The reforms, due to come into effect from July, include the establishment of a new health and safety regulator, and require people in critical safety roles in coal mines to be employees, not contract workers, to help them raise safety issues.
Mining lobby group, the Queensland Resources Council, said in a statement it would work with authorities to make the industry safe.
"(The council) believes those who work in the industry, whether on mine sites or in offices, do their best and all within their power and responsibility to keep each other safe."
(Reporting by Melanie Burton; editing by Richard Pullin)
((melanie.burton@thomsonreuters.com Twitter: @MelanieMetals; +613 9286 1421; Reuters Messaging: melanie.burton.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.
|
Four of the five workers injured in the explosion at Anglo American's AAL.L Grosvenor coal mine on May 6 are still in a critical condition. "This offence sends the clear message to employers and senior officers that the safety and health of their workers is paramount," the state's mines minister Anthony Lynham said in a statement. "In the past two years we've had eight workers die, and a gas explosion in an underground coal mine has put five miners in hospital.
|
Four of the five workers injured in the explosion at Anglo American's AAL.L Grosvenor coal mine on May 6 are still in a critical condition. MELBOURNE, May 20 (Reuters) - Australia's Queensland state passed new mine safety laws on Wednesday that would see company executives jailed for up to 20 years if workers die due to criminal negligence, following a spate of mine deaths. The reforms, due to come into effect from July, include the establishment of a new health and safety regulator, and require people in critical safety roles in coal mines to be employees, not contract workers, to help them raise safety issues.
|
Four of the five workers injured in the explosion at Anglo American's AAL.L Grosvenor coal mine on May 6 are still in a critical condition. MELBOURNE, May 20 (Reuters) - Australia's Queensland state passed new mine safety laws on Wednesday that would see company executives jailed for up to 20 years if workers die due to criminal negligence, following a spate of mine deaths. The legislation extended industrial manslaughter laws to the mining sector, as part of a package of safety and other reforms for an industry that employees 50,000 people in the state.
|
Four of the five workers injured in the explosion at Anglo American's AAL.L Grosvenor coal mine on May 6 are still in a critical condition. MELBOURNE, May 20 (Reuters) - Australia's Queensland state passed new mine safety laws on Wednesday that would see company executives jailed for up to 20 years if workers die due to criminal negligence, following a spate of mine deaths. The reforms, due to come into effect from July, include the establishment of a new health and safety regulator, and require people in critical safety roles in coal mines to be employees, not contract workers, to help them raise safety issues.
|
5861.0
|
2020-05-19 00:00:00 UTC
|
Delta Air Lines Stock Has Plenty of Upside From Current Depressed Levels
|
AAL
|
https://www.nasdaq.com/articles/delta-air-lines-stock-has-plenty-of-upside-from-current-depressed-levels-2020-05-19
|
nan
|
nan
|
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Few sectors are hurting as badly from the novel coronavirus as the airline industry. Unlike other stocks that also took a hit as a result of the pandemic, airline stocks never had much of a recovery, despite significant government financial support. And Warren Buffet’s Berkshire Hathaway (NYSE:BRK.A, NYSE:BRK.B) — one of the largest shareholders in airline stocks — dumping its holdings certainly didn’t help. Delta Air Lines (NYSE:DAL) has continued its downward spiral, with a Friday close of $19.19 that represented a new 2020 low for DAL stock.
Source: NextNewMedia / Shutterstock.com
An Industry Devastated by Coronavirus
When Delta released its results for the March quarter, the effect of the coronavirus pandemic on its operations was in the spotlight. And it was dire. Passenger volume on Delta international flight was down by 90%.
Domestically, it was down 80%. 650 planes were parked indefinitely. Those planes that were still flying required elaborate, time-consuming (and costly) decontamination procedures after every flight.
By the end of March, the company was burning through $100 million per day.
7 Financial Stocks with Dependable Dividends
The situation looks just as grim in the short-term. Delta CEO Ed Bastian noted:
“Government travel restrictions and stay-at-home orders have been effective in slowing the spread of the virus, but have also severely impacted near- term demand for air travel, reducing our expected June quarter revenues by 90 percent, compared to a year ago”
Was Government Assistance Enough?
Airline stocks got a boost on hopes of government assistance. However, when the Senate approved a $2 trillion stimulus package on March 26, DAL stock quickly began to slide once again.
Under the terms of the CARES Act, Delta received $3.8 billion in grant money and $1.6 billion in a low interest loan. The money was earmarked for payroll support. In return, the U.S. Treasury received warrants to purchase up to 6.5 million shares of DAL stock at a strike price of $24.39 and a five-year maturity.
In other words, the CARES Act provided money for airlines to stay solvent for the short term, but it came with strings attached, and investors were ultimately unconvinced that would be sufficient for the industry’s long term survival.
After gaining 48% in the days leading up to the CARES Act, DAL gave most of that back in the week following its passage. After its Friday close of $19.19, Delta stock set a new low for 2020, dropping to a level not seen since 2013.
Warren Buffet Bails on Airlines
One headline event definitely didn’t help the plight of airline stocks.
Berkshire Hathaway was a top shareholder among U.S airlines including Delta, American Airlines (NASDAQ:AAL), Southwest Airlines (NYSE:LUV) and United Airlines (NASAQ:UAL).
Warren Buffet recently announced his firm sold all of those airlines holdings at a loss, with a pessimistic view on whether the industry would survive. That news only added to Delta’s downward momentum.
Bottom Line on DAL Stock
There’s no doubt that airlines face tough times ahead, Delta no exception. The question is how tough. Warren Buffet didn’t have the stomach to take on the risk of the situation, but many investment analysts have a more optimistic view.
Among those tracked by CNN Business, DAL remains a consensus “buy” — unchanged since March. And if they’re right, at $19.19 DAL stock has considerable upside. Even the most pessimistic of those analysts has a 12-month price target on DAL of $21, for 9.5% upside. The median target of $34 puts shares at their mid-March price range, but even that depressed level offers 77% upside over Friday’s close.
Whether DAL stock is currently a buy, or something to avoid depends on whether you agree with Warren Buffet’s take on airline stocks, or have confidence that the industry will eventually stage a recovery.
As of this writing, Brad Moon did not hold a position in any of the aforementioned securities.
The post Delta Air Lines Stock Has Plenty of Upside From Current Depressed Levels 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.
|
Berkshire Hathaway was a top shareholder among U.S airlines including Delta, American Airlines (NASDAQ:AAL), Southwest Airlines (NYSE:LUV) and United Airlines (NASAQ:UAL). Delta CEO Ed Bastian noted: “Government travel restrictions and stay-at-home orders have been effective in slowing the spread of the virus, but have also severely impacted near- term demand for air travel, reducing our expected June quarter revenues by 90 percent, compared to a year ago” Was Government Assistance Enough? In return, the U.S. Treasury received warrants to purchase up to 6.5 million shares of DAL stock at a strike price of $24.39 and a five-year maturity.
|
Berkshire Hathaway was a top shareholder among U.S airlines including Delta, American Airlines (NASDAQ:AAL), Southwest Airlines (NYSE:LUV) and United Airlines (NASAQ:UAL). And Warren Buffet’s Berkshire Hathaway (NYSE:BRK.A, NYSE:BRK.B) — one of the largest shareholders in airline stocks — dumping its holdings certainly didn’t help. Under the terms of the CARES Act, Delta received $3.8 billion in grant money and $1.6 billion in a low interest loan.
|
Berkshire Hathaway was a top shareholder among U.S airlines including Delta, American Airlines (NASDAQ:AAL), Southwest Airlines (NYSE:LUV) and United Airlines (NASAQ:UAL). Delta Air Lines (NYSE:DAL) has continued its downward spiral, with a Friday close of $19.19 that represented a new 2020 low for DAL stock. Whether DAL stock is currently a buy, or something to avoid depends on whether you agree with Warren Buffet’s take on airline stocks, or have confidence that the industry will eventually stage a recovery.
|
Berkshire Hathaway was a top shareholder among U.S airlines including Delta, American Airlines (NASDAQ:AAL), Southwest Airlines (NYSE:LUV) and United Airlines (NASAQ:UAL). Unlike other stocks that also took a hit as a result of the pandemic, airline stocks never had much of a recovery, despite significant government financial support. Delta Air Lines (NYSE:DAL) has continued its downward spiral, with a Friday close of $19.19 that represented a new 2020 low for DAL stock.
|
5862.0
|
2020-05-19 00:00:00 UTC
|
Brazil mining sector will quickly bounce back after COVID-19 disruption - Ibram
|
AAL
|
https://www.nasdaq.com/articles/brazil-mining-sector-will-quickly-bounce-back-after-covid-19-disruption-ibram-2020-05-19
|
nan
|
nan
|
By Marta Nogueira
RIO DE JANEIRO, May 19 (Reuters) - Brazil's mining sector is likely to be the first to rebound from the economic shock of the coronavirus outbreak due to large iron ore capacity and already-growing demand from China, the president of industry association Ibram told Reuters.
Nonetheless, Flávio Penido said there could be a negative impact on Brazilian production if the government does not curb the outbreak's spread.
"The mining sector is the sector that will certainly be the first to respond for the recovery of the Brazilian economy ... due to the installed capacity and short-term recovery capacity," said Penido.
"China has low stocks of steel, low stocks of high-grade Brazilian ore. And it is resuming ... and the impact is on prices."
Penido said Ibram's aim is to reach an annual production capacity of around 450 million tonnes of iron ore in the coming years, compared to the current 410 million tons. Ibram's 130 members include Vale VALE3.SA, Anglo American AAL.L, Cia Siderurgica Nacional CSNA3.SA and Gerdau GGBR4.SA.
Iron ore futures on the Dalian stock exchange closed up 3.6% on Tuesday at 711 yuan ($100.07) per tonne, accumulating 13% gains in a five-day rally, supported by a positive outlook for Chinese domestic demand amid hopes of further economic stimulus.
In a recent interview, Vale Chief Financial Officer Luciano Siani said that industrial activities in China are practically back to normal levels and that its economy is recovering "very vigorously."
(Editing by Gabriel Stargardter and Sonya Hepinstall)
((Gabriel.Stargardter@thomsonreuters.com; +55 21998116099; Reuters Messaging: gabriel.stargardter.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.
|
Ibram's 130 members include Vale VALE3.SA, Anglo American AAL.L, Cia Siderurgica Nacional CSNA3.SA and Gerdau GGBR4.SA. By Marta Nogueira RIO DE JANEIRO, May 19 (Reuters) - Brazil's mining sector is likely to be the first to rebound from the economic shock of the coronavirus outbreak due to large iron ore capacity and already-growing demand from China, the president of industry association Ibram told Reuters. Iron ore futures on the Dalian stock exchange closed up 3.6% on Tuesday at 711 yuan ($100.07) per tonne, accumulating 13% gains in a five-day rally, supported by a positive outlook for Chinese domestic demand amid hopes of further economic stimulus.
|
Ibram's 130 members include Vale VALE3.SA, Anglo American AAL.L, Cia Siderurgica Nacional CSNA3.SA and Gerdau GGBR4.SA. By Marta Nogueira RIO DE JANEIRO, May 19 (Reuters) - Brazil's mining sector is likely to be the first to rebound from the economic shock of the coronavirus outbreak due to large iron ore capacity and already-growing demand from China, the president of industry association Ibram told Reuters. "The mining sector is the sector that will certainly be the first to respond for the recovery of the Brazilian economy ... due to the installed capacity and short-term recovery capacity," said Penido.
|
Ibram's 130 members include Vale VALE3.SA, Anglo American AAL.L, Cia Siderurgica Nacional CSNA3.SA and Gerdau GGBR4.SA. By Marta Nogueira RIO DE JANEIRO, May 19 (Reuters) - Brazil's mining sector is likely to be the first to rebound from the economic shock of the coronavirus outbreak due to large iron ore capacity and already-growing demand from China, the president of industry association Ibram told Reuters. "The mining sector is the sector that will certainly be the first to respond for the recovery of the Brazilian economy ... due to the installed capacity and short-term recovery capacity," said Penido.
|
Ibram's 130 members include Vale VALE3.SA, Anglo American AAL.L, Cia Siderurgica Nacional CSNA3.SA and Gerdau GGBR4.SA. By Marta Nogueira RIO DE JANEIRO, May 19 (Reuters) - Brazil's mining sector is likely to be the first to rebound from the economic shock of the coronavirus outbreak due to large iron ore capacity and already-growing demand from China, the president of industry association Ibram told Reuters. Nonetheless, Flávio Penido said there could be a negative impact on Brazilian production if the government does not curb the outbreak's spread.
|
5863.0
|
2020-05-18 00:00:00 UTC
|
Why Airline Shares Are Soaring Today
|
AAL
|
https://www.nasdaq.com/articles/why-airline-shares-are-soaring-today-2020-05-18
|
nan
|
nan
|
What happened
We've been saying for weeks now that airlines, thanks in part to a government cash infusion, are in no immediate danger of liquidity issues, but the industry needs traffic to normalize in the months to come to avoid dire consequences. Monday brought promising news on the vaccine front, and that's helping to push airline stocks, and the broader market, higher.
Shares of Spirit Airlines (NYSE: SAVE) are up 21% as of noon Monday, while shares of United Airlines Holdings (NASDAQ: UAL) are up 17%, and shares of Allegiant Travel (NASDAQ: ALGT), Delta Air Lines (NYSE: DAL), Southwest Airlines (NYSE: LUV), and Hawaiian Holdings (NASDAQ: HA) are up more than 11% apiece.
Other airline stocks are also beating the market, with Alaska Air Group (NYSE: ALK) up 10%, American Airlines Group (NASDAQ: AAL) up 8%, and JetBlue Airways (NASDAQ: JBLU) up more than 6%.
So what
The COVID-19 pandemic has wiped out demand for air travel, causing airline stocks to lose more than half of their value year to date and raising real questions about the industry's future.
The airlines came into the crisis relatively healthy and have added cash in the months since the pandemic began, giving them some cushion. But it will be difficult for the stocks to take off with so much uncertainty remaining about the duration of the pandemic and what the economy will look like when it is over.
Image source: Getty Images.
The market on Monday cheered positive news from biotech Moderna (NASDAQ: MRNA) about promising early results from a clinical trial of a potential COVID-19 vaccine. The best-case scenario for airlines would be for a vaccine to be rapidly developed, allowing travel to normalize quickly and revenues to return.
There is some company-specific news driving certain stocks on Monday as well. Before markets opened, Spirit Airlines was upgraded to outperform by Evercore ISI, and Delta announced it was resuming some key international routes suspended due to the pandemic.
United, meanwhile, had been beaten down harder than most last week due to a number of company-specific headlines and was due for a rebound. JetBlue, due to its business model, will likely need more of a full economic recovery, and not just normalized recession-level traffic, to really rebound.
Now what
Moderna's clinical trial is without doubt good news, but it is only the first step in a long process. The trial was only conducted on eight participants, and further research is needed. The company hopes to begin a larger study in July.
If there is an end to the pandemic in sight, airline stocks are almost certainly undervalued and buying in makes sense. But be aware that even in the best of scenarios we are still months away from a widespread vaccine that could allow travel to normalize. And we still don't know what the U.S. economy will look like in the second half of the year, and what that will mean for travel trends.
I believe it is safe to buy airline stocks right now, as long as investors understand the risk. It's best to stick to top operators like Delta, Alaska, and Southwest that have the best chance of surviving in the event something goes wrong in the vaccine chase and the pandemic is with us longer than we hope.
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 April 16, 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.
|
Other airline stocks are also beating the market, with Alaska Air Group (NYSE: ALK) up 10%, American Airlines Group (NASDAQ: AAL) up 8%, and JetBlue Airways (NASDAQ: JBLU) up more than 6%. What happened We've been saying for weeks now that airlines, thanks in part to a government cash infusion, are in no immediate danger of liquidity issues, but the industry needs traffic to normalize in the months to come to avoid dire consequences. So what The COVID-19 pandemic has wiped out demand for air travel, causing airline stocks to lose more than half of their value year to date and raising real questions about the industry's future.
|
Other airline stocks are also beating the market, with Alaska Air Group (NYSE: ALK) up 10%, American Airlines Group (NASDAQ: AAL) up 8%, and JetBlue Airways (NASDAQ: JBLU) up more than 6%. Shares of Spirit Airlines (NYSE: SAVE) are up 21% as of noon Monday, while shares of United Airlines Holdings (NASDAQ: UAL) are up 17%, and shares of Allegiant Travel (NASDAQ: ALGT), Delta Air Lines (NYSE: DAL), Southwest Airlines (NYSE: LUV), and Hawaiian Holdings (NASDAQ: HA) are up more than 11% apiece. The Motley Fool recommends Alaska Air Group, Delta Air Lines, Hawaiian Holdings, JetBlue Airways, and Southwest Airlines.
|
Other airline stocks are also beating the market, with Alaska Air Group (NYSE: ALK) up 10%, American Airlines Group (NASDAQ: AAL) up 8%, and JetBlue Airways (NASDAQ: JBLU) up more than 6%. Shares of Spirit Airlines (NYSE: SAVE) are up 21% as of noon Monday, while shares of United Airlines Holdings (NASDAQ: UAL) are up 17%, and shares of Allegiant Travel (NASDAQ: ALGT), Delta Air Lines (NYSE: DAL), Southwest Airlines (NYSE: LUV), and Hawaiian Holdings (NASDAQ: HA) are up more than 11% apiece. See the 10 stocks *Stock Advisor returns as of April 16, 2020 Lou Whiteman owns shares of Delta Air Lines and Spirit Airlines.
|
Other airline stocks are also beating the market, with Alaska Air Group (NYSE: ALK) up 10%, American Airlines Group (NASDAQ: AAL) up 8%, and JetBlue Airways (NASDAQ: JBLU) up more than 6%. What happened We've been saying for weeks now that airlines, thanks in part to a government cash infusion, are in no immediate danger of liquidity issues, but the industry needs traffic to normalize in the months to come to avoid dire consequences. * 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!
|
5864.0
|
2020-05-18 00:00:00 UTC
|
Breakingviews - Corona Capital: Travel companies, Oil
|
AAL
|
https://www.nasdaq.com/articles/breakingviews-corona-capital%3A-travel-companies-oil-2020-05-18
|
nan
|
nan
|
Reuters
Reuters
NEW YORK/DALLAS/LONDON/HONG KONG (Reuters Breakingviews) - Corona Capital is a daily column updated throughout the day by Breakingviews columnists around the world with short, sharp pandemic-related insights.
LATEST
- Travel companies soar
- Oil market hopes
TRAVEL BUGS. Americans are ready to hit the road. That at least is the message from the stock market on Monday. Shares in car-rental firm Avis Budget zoomed ahead more than 20%. Hertz Global, which on Monday also removed boss Kathryn Marinello from the driver’s seat, was up almost as much.
United Airlines and Spirit Airlines soared highest in their industry, with Delta Air Lines and Southwest Airlines following with 13%, and American Airlines and JetBlue Airways in single digits.
Hotel chains rose, too, though slightly less. InterContinental Hotels was up by 9% and Hyatt Hotels by 13%. Perhaps shareholders expect vacationers to stay with family – or sleep in rental cars. But they certainly are seeking fresh air. Shares in casinos like Las Vegas Sands were up just 4% or so – a sign Americans don’t want to swap lockdowns at home for vacations inside. (By Antony Currie)
TIME-TRAVELING OIL. Four weeks is a long time in the market for black gold. On Monday the price for West Texas Intermediate futures were changing hands for almost $32 a barrel for the forward-month contract, which expires on Tuesday. That’s despite the U.S. Commodity Futures Trading Commission warning last week that prices could still go negative, just as they did for the previous forward-month contract in mid-April.
Oil watchers were hopeful about global supply cuts kicking in, Reuters reported Monday, though U.S. fields are causing the biggest problems. And yet, there’s a bright side: The number of U.S. rigs in operation plunged to 339, 190 fewer than at the start of the year, according to Evercore ISI.
With some large American cities slowly opening, and industrial giants like Ford Motor firing up plants, demand hopes are revving up too. These could still be dashed. But with oil prices now at levels not seen since early March, traders are starting to look like they’re throwing caution to the wind. (By Lauren Silva Laughlin)
CHECKERED FLAGS IN VACCINE RACE. Moderna’s vaccine for Covid-19 hasn’t even completed one lap, but Wall Street assumes it’s heading for victory. The U.S. biotech company said on Monday that interim results from an early trial were promising. That tacked nearly $7 billion onto its now-$31 billion market capitalization. With late-stage clinical trials scheduled to begin in July, there could be a vaccine by fall.
Or that’s the theory. Moderna said the initial eight patients tested produced the same or greater concentrations of antibodies that can neutralize the virus as “generally seen” in recovered patients. But it’s unclear if antibodies are key to eliminating the virus. Some recovered people have very low levels. Moreover, even though the trial was small, several volunteers had severe temporary adverse effects. It’s far too early to assume this will pass the finish line, much less take the prize. (By Robert Cyran)
EASY TARGETS. UK grocer executives and their investors could be victims of their own success. That’s if the UK government introduces a windfall tax to raise much needed cash from businesses which have thrived during the coronavirus lockdown. Punters are keen. A recent YouGov survey found that 53% of people would support a so-called “excess profit tax.”
Hitting the grocers could be harder than it sounds. True, both Tesco and J Sainsbury enjoyed record sales in March, as customers rushed to stock up on loo roll and pasta. But Tesco boss Dave Lewis recently warned the group will take a hit of up to 925 million pounds from virus-related costs, like hiring 45,000 extra staff. The government may struggle to tax online giant Amazon.com, which books most of its UK revenue through a Luxembourg subsidiary. Still, retailers would only have themselves to blame. Ocado recently paid CEO Tim Steiner a 59 million-pound pay packet for 2019. Tesco churned out a 635 million-pound dividend in April, despite benefitting from state support on property taxes. Such largesse will make it difficult to plead poverty. (By Aimee Donnellan)
M&A MATTERS. JPMorgan’s dealmakers have some tips for chief executives contemplating a merger or acquisition. Having crunched the numbers on mega-deals struck during the last crisis, the bankers’ first lesson is that CEOs should take the initiative. Over three-quarters of the deals reviewed began with a buyer’s approach. Second, pay up: the median U.S. control premium during 2008 and 2009 was around 36%, compared with 27% from 2000 to 2019.
That’s because equity markets plummeted, meaning CEOs could offer more relative to prevailing share prices. Still, it confounds the logic for corona-crisis dealmaking today. The S&P 500 is down just 11% this year, compared with a much steeper fall in 2008, meaning CEOs have little room to sweeten control premiums. Meanwhile, the earnings they’re buying are just as uncertain, given the chance of a second virus wave. Little wonder M&A has shrivelled. (By Liam Proud)
EMIRHAD? Dubai-based airline Emirates is making drastic turns to weather the coronavirus storm, cutting 30,000 jobs, or a third of its workforce, according to Bloomberg. It’s also accelerating the retirement of its 100-plus A380 superjumbos. If that doesn’t restore stability, Emirates could try a more radical manoeuvre – a merger with local rival Etihad.
There are plenty of impediments, not least tensions between their respective homes, flashy Dubai and staid but uber-wealthy Abu Dhabi. That probably rules out the most obvious cost-saving – squashing their two hubs, now 60 kilometres (40 miles) apart, into one. But Abu Dhabi already bailed out Dubai in the financial crisis, and it needs to do something with Etihad, which made a $1.3 billion operating loss in 2018. Copying International Consolidated Airlines’ holding-company structure for British Airways and Spain’s Iberia might spare national blushes and reap some of the benefits of flying in formation. (By Ed Cropley)
RECKLESS DRIVING. Tianqi Lithium, a producer of the key ingredient for electric-vehicle batteries, is in talks with lenders to restructure its debt. Prices for the white metal have collapsed on the back of rapid expansion of mines. China’s easing of subsidies for battery-powered vehicles meant demand was already moderating, and the coronavirus promises to delay any recovery.
That’s left the Shenzhen-listed company in a rut. Its market value is now less than the $4.1 billion it paid for a minority stake in Chilean miner SQM in 2018. Total debt will remain at nearly 9 times EBITDA over the next 12 months, Moody’s wrote in April. Selling equity and strategic assets will help, but a reset of loans is a tacit admission that any proceeds will be underwhelming in a buyer’s market. (By Sharon Lam)
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Oil watchers were hopeful about global supply cuts kicking in, Reuters reported Monday, though U.S. fields are causing the biggest problems. But Tesco boss Dave Lewis recently warned the group will take a hit of up to 925 million pounds from virus-related costs, like hiring 45,000 extra staff. Copying International Consolidated Airlines’ holding-company structure for British Airways and Spain’s Iberia might spare national blushes and reap some of the benefits of flying in formation.
|
- Travel companies soar - Oil market hopes TRAVEL BUGS. United Airlines and Spirit Airlines soared highest in their industry, with Delta Air Lines and Southwest Airlines following with 13%, and American Airlines and JetBlue Airways in single digits. That’s because equity markets plummeted, meaning CEOs could offer more relative to prevailing share prices.
|
- Travel companies soar - Oil market hopes TRAVEL BUGS. United Airlines and Spirit Airlines soared highest in their industry, with Delta Air Lines and Southwest Airlines following with 13%, and American Airlines and JetBlue Airways in single digits. That’s because equity markets plummeted, meaning CEOs could offer more relative to prevailing share prices.
|
That at least is the message from the stock market on Monday. But it’s unclear if antibodies are key to eliminating the virus. A recent YouGov survey found that 53% of people would support a so-called “excess profit tax.” Hitting the grocers could be harder than it sounds.
|
5865.0
|
2020-05-18 00:00:00 UTC
|
Monday's ETF with Unusual Volume: IYC
|
AAL
|
https://www.nasdaq.com/articles/mondays-etf-with-unusual-volume%3A-iyc-2020-05-18
|
nan
|
nan
|
The iShares U.S. Consumer Services ETF is seeing unusually high volume in afternoon trading Monday, with over 139,000 shares traded versus three month average volume of about 59,000. Shares of IYC were up about 4% on the day.
Components of that ETF with the highest volume on Monday were Norwegian Cruise Line Holdings, trading up about 15.7% with over 48.7 million shares changing hands so far this session, and American Airlines Group, up about 7.1% on volume of over 40.3 million shares. Spirit Airlines is the component faring the best Monday, higher by about 19.3% on the day, while Wayfair is lagging other components of the iShares U.S. Consumer Services ETF, trading lower by about 7.7%.
VIDEO: Monday's ETF with Unusual Volume: IYC
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
The iShares U.S. Consumer Services ETF is seeing unusually high volume in afternoon trading Monday, with over 139,000 shares traded versus three month average volume of about 59,000. Components of that ETF with the highest volume on Monday were Norwegian Cruise Line Holdings, trading up about 15.7% with over 48.7 million shares changing hands so far this session, and American Airlines Group, up about 7.1% on volume of over 40.3 million shares. Spirit Airlines is the component faring the best Monday, higher by about 19.3% on the day, while Wayfair is lagging other components of the iShares U.S. Consumer Services ETF, trading lower by about 7.7%.
|
The iShares U.S. Consumer Services ETF is seeing unusually high volume in afternoon trading Monday, with over 139,000 shares traded versus three month average volume of about 59,000. Spirit Airlines is the component faring the best Monday, higher by about 19.3% on the day, while Wayfair is lagging other components of the iShares U.S. Consumer Services ETF, trading lower by about 7.7%. VIDEO: Monday's ETF with Unusual Volume: IYC The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
The iShares U.S. Consumer Services ETF is seeing unusually high volume in afternoon trading Monday, with over 139,000 shares traded versus three month average volume of about 59,000. Components of that ETF with the highest volume on Monday were Norwegian Cruise Line Holdings, trading up about 15.7% with over 48.7 million shares changing hands so far this session, and American Airlines Group, up about 7.1% on volume of over 40.3 million shares. Spirit Airlines is the component faring the best Monday, higher by about 19.3% on the day, while Wayfair is lagging other components of the iShares U.S. Consumer Services ETF, trading lower by about 7.7%.
|
Components of that ETF with the highest volume on Monday were Norwegian Cruise Line Holdings, trading up about 15.7% with over 48.7 million shares changing hands so far this session, and American Airlines Group, up about 7.1% on volume of over 40.3 million shares. Spirit Airlines is the component faring the best Monday, higher by about 19.3% on the day, while Wayfair is lagging other components of the iShares U.S. Consumer Services ETF, trading lower by about 7.7%. VIDEO: Monday's ETF with Unusual Volume: IYC The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
5866.0
|
2020-05-16 00:00:00 UTC
|
3 Big Revelations from Warren Buffett's Latest Investing Moves
|
AAL
|
https://www.nasdaq.com/articles/3-big-revelations-from-warren-buffetts-latest-investing-moves-2020-05-16
|
nan
|
nan
|
The coronavirus bear market has shaken investors to the core, and in times of trouble, many of them turn to legendary investor Warren Buffett for guidance and support. The CEO of Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) always has plenty to say about the investing climate, and every three months, investors get a chance to see what the insurance giant has done with its own portfolio.
On May 15, Berkshire revealed some of its recent portfolio moves in a filing with the Securities and Exchange Commission. In several cases, the information the filing contained wasn't actually the most up-to-date, because it represents a snapshot of Berkshire's holdings as of March 31. Nevertheless, there were three important pieces of information that investors gleaned from Buffett's latest moves.
1. Berkshire had actually added to some of its airline positions -- right before he sold out
Thanks to Buffett's comments at the annual shareholder meeting, we already knew that Berkshire had sold off its entire position in the four major U.S. airlines. Required filings in early April showed that Berkshire had sold positions in Delta Air Lines (NYSE: DAL) and Southwest Airlines (NYSE: LUV), bringing both of them below the 10% mark at which more immediate disclosure is required. Asked for clarification, Buffett revealed that the sales weren't just motivated by the common thread of keeping positions below 10%. They represented a change of view, with the Berkshire CEO saying, "It turned out I was wrong about the business." Later filings revealed that Berkshire sold off its stakes in United Airlines Holdings (NASDAQ: UAL) and American Airlines Group (NASDAQ: AAL) as well.
Yet as of March 31, Buffett's holdings of Delta were actually slightly larger than they'd been at the end of 2019. A modest increase in United also showed up, with small declines for Southwest and American. In light of the abrupt shift that came just days later, it's interesting to see the positioning among airline stocks that took place during the first quarter.
2. These two stocks got the Buffett boot, but a third was a bigger surprise
Buffett sold out of two positions during the first quarter. Insurance giant Travelers (NYSE: TRV) and energy company Phillips 66 (NYSE: PSX) were eliminated entirely from Berkshire's holdings in the first quarter.
Phillips 66 got eliminated from Berkshire's holdings in the first quarter. Image source: Phillips 66.
Neither move came as a really big surprise. Berkshire reduced its position in Travelers by almost 95% at the end of 2019, and Phillips 66 had seen an even larger-percentage reduction as of Dec. 31. These transactions simply got what had become insignificant positions off the books entirely.
More notable was the further reduction in Berkshire's position in Goldman Sachs (NYSE: GS). After going from 18.4 million shares in September 2019 to 12 million shares three months later, Berkshire reported owning only 1.9 million Goldman shares as of March 31. That's a nice payday from Buffett's opportunistic purchase back in the financial crisis, but it's interesting to see the big sale when even out-of-favor rival Wells Fargo managed to escape any reduction among Berkshire's holdings.
3. No huge buys
Some investors had hoped to see Buffett buying big during the coronavirus bear market, but the March 31 report confirmed Berkshire's conservative positioning. The filing revealed an added position in PNC Financial Services Group (NYSE: PNC), boosting its holdings by more than 500,000 shares to roughly 9.2 million. Apart from that, changes were insignificant and likely meaningless.
What's next for Berkshire?
We only get a sneak peek at Warren Buffett and his investment decisions once every three months, and the latest filing leaves more questions unanswered than it answers. What's becoming increasingly clear is that no matter how much confidence the Berkshire CEO has in long-term prospects for the stock market, his primary concern right now is ensuring that the insurance giant has the capital it needs to handle whatever happens from here forward in the coronavirus crisis.
10 stocks we like better than The Travelers Companies
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 The Travelers Companies 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 April 16, 2020
Dan Caplinger owns shares of Berkshire Hathaway (B shares). The Motley Fool owns shares of and recommends Berkshire Hathaway (B shares). The Motley Fool recommends Delta Air Lines and Southwest Airlines and recommends the following options: long January 2021 $200 calls on Berkshire Hathaway (B shares), short January 2021 $200 puts on Berkshire Hathaway (B shares), and short June 2020 $205 calls on Berkshire Hathaway (B shares). The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Later filings revealed that Berkshire sold off its stakes in United Airlines Holdings (NASDAQ: UAL) and American Airlines Group (NASDAQ: AAL) as well. That's a nice payday from Buffett's opportunistic purchase back in the financial crisis, but it's interesting to see the big sale when even out-of-favor rival Wells Fargo managed to escape any reduction among Berkshire's holdings. We only get a sneak peek at Warren Buffett and his investment decisions once every three months, and the latest filing leaves more questions unanswered than it answers.
|
Later filings revealed that Berkshire sold off its stakes in United Airlines Holdings (NASDAQ: UAL) and American Airlines Group (NASDAQ: AAL) as well. Required filings in early April showed that Berkshire had sold positions in Delta Air Lines (NYSE: DAL) and Southwest Airlines (NYSE: LUV), bringing both of them below the 10% mark at which more immediate disclosure is required. After going from 18.4 million shares in September 2019 to 12 million shares three months later, Berkshire reported owning only 1.9 million Goldman shares as of March 31.
|
Later filings revealed that Berkshire sold off its stakes in United Airlines Holdings (NASDAQ: UAL) and American Airlines Group (NASDAQ: AAL) as well. Berkshire had actually added to some of its airline positions -- right before he sold out Thanks to Buffett's comments at the annual shareholder meeting, we already knew that Berkshire had sold off its entire position in the four major U.S. airlines. Required filings in early April showed that Berkshire had sold positions in Delta Air Lines (NYSE: DAL) and Southwest Airlines (NYSE: LUV), bringing both of them below the 10% mark at which more immediate disclosure is required.
|
Later filings revealed that Berkshire sold off its stakes in United Airlines Holdings (NASDAQ: UAL) and American Airlines Group (NASDAQ: AAL) as well. Nevertheless, there were three important pieces of information that investors gleaned from Buffett's latest moves. Required filings in early April showed that Berkshire had sold positions in Delta Air Lines (NYSE: DAL) and Southwest Airlines (NYSE: LUV), bringing both of them below the 10% mark at which more immediate disclosure is required.
|
5867.0
|
2020-05-16 00:00:00 UTC
|
Will COVID-19 Permanently Ground Airlines?
|
AAL
|
https://www.nasdaq.com/articles/will-covid-19-permanently-ground-airlines-2020-05-16
|
nan
|
nan
|
There are few sectors that have been hammered as hard as travel since the novel coronavirus pandemic began. Even the so-called "travel leaders" major airlines are teetering on the edge. Passengers are staying away in droves, flights are being canceled, and the few that are operating are mostly full — of empty seats. Air travel's bleakest time since 9/11 raises serious doubts for the industry and its investors. But for several reasons, I still don't think the COVID-19 crisis marks the end of air travel.
Low visibility ahead
In an interview on NBC's Today May 12, Boeing (NYSE: BA) CEO Dave Calhoun used words like "grave" and "apocalyptic" to describe the state of the airline industry. He even went as far as to say that a major U.S. airline would go out of business by the end of the year. Calhoun also warned that it could take from "three to five years" for the industry to recover to pre-pandemic growth rates.
At the end of March, Congress approved a $50 billion aid package to shore up the nation's airlines, part of its $2 trillion coronavirus pandemic relief plan. Half of that money — $25 billion — comes as grants to keep airline employee paychecks coming through Sept. 30. After that, Calhoun said, with airlines only operating at a 25% passenger load, and only climbing to around 50% of normal traffic by year's end (being optimistic), airline jobs will be lost, and the burden will permanently ground some carriers.
Image source: Getty Images.
The unfriendly skies
So what does this mean for the investor? How does all this crack the once impermeable foundation of the American airline industry? What about globally? What would Warren Buffett do?
In early May, the "Oracle of Omaha" directed Berkshire Hathaway (NYSE: BRK.B) to sell off all — that's right, all — of its shares in American (NASDAQ: AAL), United (NASDAQ: UAL), Delta (NYSE: DAL), and Southwest Airlines (NYSE: LUV). Buffett owned between a 9% and 11% stake in these carriers, Berkshire's 2019 financials showed.
Buffett said "the world has changed" for U.S. airlines as a result of the COVID-19 pandemic, and cast a bleak view on multiple media outlets. Airlines executives pushed back, like Delta in a statement, saying it was "confident that the strengths that are core to Delta's business — our people, our brand, our network and our operational reliability — will endure and position Delta to succeed".
There's no doubt airlines' stock has plummeted, along with the number of passengers. But has it bottomed out? And what lies ahead?
They'll fly when we fly (again)
The only thing that can help the airlines keep flying is if more people return to fly. Right now, though, airline passenger traffic is lagging way, way, way behind last year's numbers. On May 1, 171,563 passengers passed through Transportation Safety Administration (TSA) checkpoints nationwide. In stark contrast, the year before, there were 2,546,029, according to TSA passenger throughput data. That's a jaw-dropping 93% decline from 2019.
Passenger throughput dropped as low as 87,534 on April 14 this year, a month and three days after the World Health Organization (WHO) declared COVID-19 a pandemic. It climbed to 215,645 on May 11, but that was still far below the 2,512,315 passengers recorded on the same day last year.
Fewer passengers mean less revenue, and less revenue means a lot more problems. Delta Air Lines executives said they expect Q2 2020 revenue (from April through June) to be down 90% from the year-ago period.
The Geneva-based International Air Transport Association (IATA), a trade association of the world's airlines founded in 1945, predicts that airline passenger revenues worldwide will drop by $314 billion in 2020 — a 55% drop from 2019 numbers.
Wake me up when September ends
Industry analysts like Savanthi Syth of Raymond James say the CARES Act is nothing more than a stopgap measure. In an interview with Barron's, she said that while airlines have raised enough capital to avoid insolvency (at least in the short term), their daily expenses run into the millions of dollars.
Some — like Southwest — are stronger. Syth said the Dallas-based carrier has the most favorable outlook of the major U.S. airlines, with enough cash and securities in reserve to last for the next 16 months without outside help, while United, Delta, JetBlue (NASDAQ: JBLU), and Spirit Airlines (NYSE: SAVE) can survive for 10 to 11 months. American — the largest airline in the world — only has enough reserves to hold out for 5.7 months, she surmised — the least of any major U.S. carrier.
I believe the major carriers will come out the other side of the COVID-19 pandemic ... eventually. It's going to be a real test of resolve and patience in the meantime, though. I think investments in Southwest, American, United, and Delta look like good moves even in today's climate, but I wouldn't expect any real return for a year or two. The boarding call will come soon enough, but like the rest of our lives, air travel will be forever changed.
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 April 16, 2020
Mike Raye has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Berkshire Hathaway (B shares) and Spirit Airlines. The Motley Fool recommends Delta Air Lines, JetBlue Airways, and Southwest Airlines and recommends the following options: long January 2021 $200 calls on Berkshire Hathaway (B shares), short January 2021 $200 puts on Berkshire Hathaway (B shares), and short June 2020 $205 calls on Berkshire Hathaway (B shares). The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
In early May, the "Oracle of Omaha" directed Berkshire Hathaway (NYSE: BRK.B) to sell off all — that's right, all — of its shares in American (NASDAQ: AAL), United (NASDAQ: UAL), Delta (NYSE: DAL), and Southwest Airlines (NYSE: LUV). Low visibility ahead In an interview on NBC's Today May 12, Boeing (NYSE: BA) CEO Dave Calhoun used words like "grave" and "apocalyptic" to describe the state of the airline industry. At the end of March, Congress approved a $50 billion aid package to shore up the nation's airlines, part of its $2 trillion coronavirus pandemic relief plan.
|
In early May, the "Oracle of Omaha" directed Berkshire Hathaway (NYSE: BRK.B) to sell off all — that's right, all — of its shares in American (NASDAQ: AAL), United (NASDAQ: UAL), Delta (NYSE: DAL), and Southwest Airlines (NYSE: LUV). The Motley Fool owns shares of and recommends Berkshire Hathaway (B shares) and Spirit Airlines. The Motley Fool recommends Delta Air Lines, JetBlue Airways, and Southwest Airlines and recommends the following options: long January 2021 $200 calls on Berkshire Hathaway (B shares), short January 2021 $200 puts on Berkshire Hathaway (B shares), and short June 2020 $205 calls on Berkshire Hathaway (B shares).
|
In early May, the "Oracle of Omaha" directed Berkshire Hathaway (NYSE: BRK.B) to sell off all — that's right, all — of its shares in American (NASDAQ: AAL), United (NASDAQ: UAL), Delta (NYSE: DAL), and Southwest Airlines (NYSE: LUV). After that, Calhoun said, with airlines only operating at a 25% passenger load, and only climbing to around 50% of normal traffic by year's end (being optimistic), airline jobs will be lost, and the burden will permanently ground some carriers. Syth said the Dallas-based carrier has the most favorable outlook of the major U.S. airlines, with enough cash and securities in reserve to last for the next 16 months without outside help, while United, Delta, JetBlue (NASDAQ: JBLU), and Spirit Airlines (NYSE: SAVE) can survive for 10 to 11 months.
|
In early May, the "Oracle of Omaha" directed Berkshire Hathaway (NYSE: BRK.B) to sell off all — that's right, all — of its shares in American (NASDAQ: AAL), United (NASDAQ: UAL), Delta (NYSE: DAL), and Southwest Airlines (NYSE: LUV). He even went as far as to say that a major U.S. airline would go out of business by the end of the year. I believe the major carriers will come out the other side of the COVID-19 pandemic ... eventually.
|
5868.0
|
2020-05-15 00:00:00 UTC
|
Buffett's Berkshire slashes Goldman stake; exits Phillips 66, Travelers
|
AAL
|
https://www.nasdaq.com/articles/buffetts-berkshire-slashes-goldman-stake-exits-phillips-66-travelers-2020-05-15-0
|
nan
|
nan
|
By Jonathan Stempel
May 15 (Reuters) - Warren Buffett's Berkshire Hathaway Inc BRKa.Nsaid on Friday it has sold much of its stake in Goldman Sachs Group Inc GS.N, despite the billionaire's assurance that the banking sector was not a "primary worry" for him during the coronavirus pandemic.
In a regulatory filing detailing its U.S.-listed investments as of March 31, Berkshire said its Goldman stake fell 84% to 1.9 million shares, from 12 million at year-end, with the stake's market value dropping to $297 million from $2.76 billion.
Goldman's stock price fell about 33% during the quarter, and some of Berkshire's selling appears to have occurred after the slide began.
Berkshire sold its remaining small stakes in the insurer Travelers Cos TRV.N and oil refiner Phillips 66 PSX.N, and tweaked several holdings. Its stake in Wells Fargo & Co WFC.N was unchanged, though the stock's price fell 47%.
A request for comment to Buffett's assistant was not immediately returned. Berkshire has more than 90 operating units including Geico, the BNSF railroad, Dairy Queen ice cream and its namesake energy business.
Investors monitor Berkshire's quarterly filings to see where Buffett and his portfolio managers Ted Weschler and Todd Combs see value. Buffett normally directs larger investments such as Apple Inc AAPL.O.
The Goldman stake originated in a $5 billion preferred stock investment at the height of the 2008 financial crisis, in a vote of confidence by Buffett for the Wall Street bank.
Berkshire's selling was disclosed after Buffett said at the May 2 annual shareholders' meeting of his Omaha, Nebraska-based conglomerate that banks were now well-capitalized and capable of weathering economic distress from the pandemic.
"If problems become severe enough in an economy, even strong banks can be under a lot of stress, and we'll be very glad we've got the Federal Reserve system standing behind them," he said.
"Overall the banking system is not going to be the problem," he added. "They are not a primary worry of mine at all."
Berkshire remains a major shareholder in American Express AXP.N, Bank of America BAC.N, Bank of New York Mellon BK.N, JPMorgan Chase JPM.N, PNC Financial PNC.N, US Bancorp USB.N and Wells Fargo.
Maeve DuVally, a Goldman spokeswoman, declined immediate comment.
Doug Kass, managing partner at Seabreeze Capital Investment Inc, called the Goldman stock sale "not surprising," following Berkshire's sale of 6.3 million Goldman shares in the fourth quarter.
Berkshire ended March with a record $137.3 billion of cash, disappointing investors unhappy with the low yields it generates for the company. The cash stake likely rose in April as Berkshire sold its entire stakes in the four largest U.S. airlines: American AAL.O, Delta DAL.N, Southwest LUV.N and United UAL.O.
(Reporting by Jonathan Stempel in New York; Editing by Sandra Maler and Leslie Adler)
((jon.stempel@thomsonreuters.com; +1 646 223 6317; Reuters Messaging: jon.stempel.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 cash stake likely rose in April as Berkshire sold its entire stakes in the four largest U.S. airlines: American AAL.O, Delta DAL.N, Southwest LUV.N and United UAL.O. By Jonathan Stempel May 15 (Reuters) - Warren Buffett's Berkshire Hathaway Inc BRKa.Nsaid on Friday it has sold much of its stake in Goldman Sachs Group Inc GS.N, despite the billionaire's assurance that the banking sector was not a "primary worry" for him during the coronavirus pandemic. The Goldman stake originated in a $5 billion preferred stock investment at the height of the 2008 financial crisis, in a vote of confidence by Buffett for the Wall Street bank.
|
The cash stake likely rose in April as Berkshire sold its entire stakes in the four largest U.S. airlines: American AAL.O, Delta DAL.N, Southwest LUV.N and United UAL.O. In a regulatory filing detailing its U.S.-listed investments as of March 31, Berkshire said its Goldman stake fell 84% to 1.9 million shares, from 12 million at year-end, with the stake's market value dropping to $297 million from $2.76 billion. Berkshire remains a major shareholder in American Express AXP.N, Bank of America BAC.N, Bank of New York Mellon BK.N, JPMorgan Chase JPM.N, PNC Financial PNC.N, US Bancorp USB.N and Wells Fargo.
|
The cash stake likely rose in April as Berkshire sold its entire stakes in the four largest U.S. airlines: American AAL.O, Delta DAL.N, Southwest LUV.N and United UAL.O. By Jonathan Stempel May 15 (Reuters) - Warren Buffett's Berkshire Hathaway Inc BRKa.Nsaid on Friday it has sold much of its stake in Goldman Sachs Group Inc GS.N, despite the billionaire's assurance that the banking sector was not a "primary worry" for him during the coronavirus pandemic. In a regulatory filing detailing its U.S.-listed investments as of March 31, Berkshire said its Goldman stake fell 84% to 1.9 million shares, from 12 million at year-end, with the stake's market value dropping to $297 million from $2.76 billion.
|
The cash stake likely rose in April as Berkshire sold its entire stakes in the four largest U.S. airlines: American AAL.O, Delta DAL.N, Southwest LUV.N and United UAL.O. By Jonathan Stempel May 15 (Reuters) - Warren Buffett's Berkshire Hathaway Inc BRKa.Nsaid on Friday it has sold much of its stake in Goldman Sachs Group Inc GS.N, despite the billionaire's assurance that the banking sector was not a "primary worry" for him during the coronavirus pandemic. Its stake in Wells Fargo & Co WFC.N was unchanged, though the stock's price fell 47%.
|
5869.0
|
2020-05-15 00:00:00 UTC
|
United Airlines Will Reach New Heights as Covid-19 Loosens Its Grip
|
AAL
|
https://www.nasdaq.com/articles/united-airlines-will-reach-new-heights-as-covid-19-loosens-its-grip-2020-05-15
|
nan
|
nan
|
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
[Editor’s Note: This article was updated on May 18 to correct operating income figures for United Airlines.]
United Airlines (NASDAQ:UAL) stock has not been doing well over the past few months. Share prices are down almost 70% for the Chicago-based airline, and it’s no surprise. The novel coronavirus spread like wildfire in the U.S., and the airline industry suffered the brunt as a result. And despite the easing of restrictions, passenger volumes have not recovered.
Source: travelview / Shutterstock.com
Data from Airlines for America show that the largest airlines averaged 23 passengers on each domestic flight over the last seven days. These are not high numbers, so you can hardly criticize investors like Warren Buffet, who decided to exit from the airline industry completely.
At the virtual annual general meeting for Berkshire Hathaway (NYSE:BRK.A, NYSE:BRK.B), Buffet said: “Berkshire is worth less today because I took that position than if I hadn’t.” Unusual words for a man who is always an optimist. But it’s also what many long-term investors in airlines may be thinking at this point.
However, not every airline is alike; there are some like United Airlines that have acquitted themselves well in the current crisis. Although we would stop short of saying that the stock is virus-proof, it’s safe to assume it has significant upside for the long-term investor.
Rough Start
The first quarter of the current fiscal year was not a good one for United Airlines. Revenue declined to $8 billion from $10.8 billion in the fourth quarter of fiscal 2019. The company recorded a net loss of $1.7 billion for the quarter, a sharp contrast to $292 million in net profit the airline registered over the same period last year.
The figures were worse than analyst expectations. And it’s going to get uglier in upcoming quarters.
For the second and third quarters, analysts are predicting earnings per share will slide to losses of $9.73 and $5.8, respectively. On an annual basis, analyst estimates show EPS will be down $18.79. On the bright side, the same projections show the airliner will report a positive EPS by 2021 of $1.5 per share.
Although the earnings report is nothing to write home about, it’s not extraordinarily bad. An extended lockdown and travel restrictions have all but eroded any chance of profitability for airlines. However, the silver lining is that once demand resurfaces, companies that were nicely progressing will get the inevitable bump in the stock market.
7 Tech Industry Dividend Stocks for Growth and Income
In short, expect a bounceback from UAL stock once the crisis is over.
Stable liquidity position
What most investors are interested in these days is liquidity, i.e., does a company have the legs to survive this crisis? In that respect, United is in a better position than its peers. Liquidity is mostly under control at the end of the latest quarter, with cash, cash equivalents, marketable securities coming to $5.221 billion.
The calculation does not include the $2.5 billion the company will get as part of the Payroll Support Program (PSP) of the CARES Act. In its latest investor presentation, the company outlined that it will burn through $40-$45 million daily in the second quarter. Even if that were true, liquidity metrics for the company would not be negatively affected as a result of these expenses.
UAL Stock Valuation
Analyst data collected from Refinitiv shows a 12-month price target of $36.30 per share, a 59.5% upside to the current share price of the company. In doing some of our calculations, let’s assume that the company manages to return to pre-2020 levels by 2023 or later. That would mean the company was sitting on an operating income of $4.5 billion. If you take that and then subtract interest and taxes, you would be left with around $2.9 billion give or take. Assuming full dilution of stock issued to the government and recent share sale, you would be sitting at an EPS of $9.44 per share.
Now, of course, these are some healthy assumptions. But if numbers do return to pre-crisis levels, it’s not out of the realm of possibility that investors would be willing to pay ten times for these earnings. In that case, you could be looking at a per-share price of $94.4, but that is very ambitious. With half the world still in lockdown mode, one can’t be that optimistic. But my assumptions are not extraordinary by any stretch as well.
Deleverage, Please
Although the stimulus package and its own expenditure cuts will provide breathing room, United needs to deleverage its balance sheet. Shareholders need to have more skin in the game and the recent share issue should help in that regard. But still, the company is highly leveraged. What’s more worrying is that there is always the propensity to load up on debt when operations are in trouble.
Company Current Price Current Ratio Quick Ratio Debt-to-Equity PE Ratio
American Airlines Group Inc 19.05 0.45 0.35 -283.42 5
Delta Air Lines Inc 46.13 0.41 0.35 1.12 6.3
Southwest Airlines Co 46.19 0.67 0.61 0.41 10.79
United Airlines Holdings Inc 61.59 0.55 0.48 1.77 5.3
As the table above shows, United Airlines is not in as bad of a position as American Airlines (NASDAQ:AAL) but Southwest Airlines (NYSE:LUV) is clearly ahead in terms of liquidity.
Last Call on UAL Stock
UAL stock will eventually rise and erode its losses. That’s not a bold prediction. But I believe the stock has long-term value and significant upside.
It has rock-solid liquidity to survive this crisis and the stock offers an attractive entry point as it’s trading at historic lows. The only thing the company needs to watch out for is long-term debt. If the numbers do not improve there, investors may be tempted to look elsewhere for greater safety. Other than that, you are in for smooth sailing with United Airline’s stock.
As of this writing, Faizan Farooque did not hold a position in any of the securities mentioned above.
The post United Airlines Will Reach New Heights as Covid-19 Loosens Its Grip 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.
|
Company Current Price Current Ratio Quick Ratio Debt-to-Equity PE Ratio American Airlines Group Inc 19.05 0.45 0.35 -283.42 5 Delta Air Lines Inc 46.13 0.41 0.35 1.12 6.3 Southwest Airlines Co 46.19 0.67 0.61 0.41 10.79 United Airlines Holdings Inc 61.59 0.55 0.48 1.77 5.3 As the table above shows, United Airlines is not in as bad of a position as American Airlines (NASDAQ:AAL) but Southwest Airlines (NYSE:LUV) is clearly ahead in terms of liquidity. These are not high numbers, so you can hardly criticize investors like Warren Buffet, who decided to exit from the airline industry completely. However, the silver lining is that once demand resurfaces, companies that were nicely progressing will get the inevitable bump in the stock market.
|
Company Current Price Current Ratio Quick Ratio Debt-to-Equity PE Ratio American Airlines Group Inc 19.05 0.45 0.35 -283.42 5 Delta Air Lines Inc 46.13 0.41 0.35 1.12 6.3 Southwest Airlines Co 46.19 0.67 0.61 0.41 10.79 United Airlines Holdings Inc 61.59 0.55 0.48 1.77 5.3 As the table above shows, United Airlines is not in as bad of a position as American Airlines (NASDAQ:AAL) but Southwest Airlines (NYSE:LUV) is clearly ahead in terms of liquidity. United Airlines (NASDAQ:UAL) stock has not been doing well over the past few months. UAL Stock Valuation Analyst data collected from Refinitiv shows a 12-month price target of $36.30 per share, a 59.5% upside to the current share price of the company.
|
Company Current Price Current Ratio Quick Ratio Debt-to-Equity PE Ratio American Airlines Group Inc 19.05 0.45 0.35 -283.42 5 Delta Air Lines Inc 46.13 0.41 0.35 1.12 6.3 Southwest Airlines Co 46.19 0.67 0.61 0.41 10.79 United Airlines Holdings Inc 61.59 0.55 0.48 1.77 5.3 As the table above shows, United Airlines is not in as bad of a position as American Airlines (NASDAQ:AAL) but Southwest Airlines (NYSE:LUV) is clearly ahead in terms of liquidity. InvestorPlace - Stock Market News, Stock Advice & Trading Tips [Editor’s Note: This article was updated on May 18 to correct operating income figures for United Airlines.] UAL Stock Valuation Analyst data collected from Refinitiv shows a 12-month price target of $36.30 per share, a 59.5% upside to the current share price of the company.
|
Company Current Price Current Ratio Quick Ratio Debt-to-Equity PE Ratio American Airlines Group Inc 19.05 0.45 0.35 -283.42 5 Delta Air Lines Inc 46.13 0.41 0.35 1.12 6.3 Southwest Airlines Co 46.19 0.67 0.61 0.41 10.79 United Airlines Holdings Inc 61.59 0.55 0.48 1.77 5.3 As the table above shows, United Airlines is not in as bad of a position as American Airlines (NASDAQ:AAL) but Southwest Airlines (NYSE:LUV) is clearly ahead in terms of liquidity. These are not high numbers, so you can hardly criticize investors like Warren Buffet, who decided to exit from the airline industry completely. For the second and third quarters, analysts are predicting earnings per share will slide to losses of $9.73 and $5.8, respectively.
|
5870.0
|
2020-05-14 00:00:00 UTC
|
House Democrat wants U.S. airlines to cap seating because of coronavirus
|
AAL
|
https://www.nasdaq.com/articles/house-democrat-wants-u.s.-airlines-to-cap-seating-because-of-coronavirus-2020-05-14
|
nan
|
nan
|
WASHINGTON, May 14 (Reuters) - The chairman of the House Transportation and Infrastructure Committee on Thursday urged U.S. airlines to maintain at least one seat between all passengers and cap seating at 67% of capacity on narrow-body airplanes to address the coronavirus pandemic.
In a letter to a group representing major airlines including Delta Air Lines DAL.N, American Airlines AAL.O, Southwest Airlines LUV.N and United Airlines UAL.O, Representative Peter DeFazio said airlines should "leave at least one seat-width of spacing between passengers and to dynamically adjust fares as needed to account for the effect on load factors."
The airlines and their trade group did not immediately comment.
(Reporting by David Shepardson Editing by Chris Reese)
((David.Shepardson@thomsonreuters.com; 2028988324;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
In a letter to a group representing major airlines including Delta Air Lines DAL.N, American Airlines AAL.O, Southwest Airlines LUV.N and United Airlines UAL.O, Representative Peter DeFazio said airlines should "leave at least one seat-width of spacing between passengers and to dynamically adjust fares as needed to account for the effect on load factors." WASHINGTON, May 14 (Reuters) - The chairman of the House Transportation and Infrastructure Committee on Thursday urged U.S. airlines to maintain at least one seat between all passengers and cap seating at 67% of capacity on narrow-body airplanes to address the coronavirus pandemic. The airlines and their trade group did not immediately comment.
|
In a letter to a group representing major airlines including Delta Air Lines DAL.N, American Airlines AAL.O, Southwest Airlines LUV.N and United Airlines UAL.O, Representative Peter DeFazio said airlines should "leave at least one seat-width of spacing between passengers and to dynamically adjust fares as needed to account for the effect on load factors." WASHINGTON, May 14 (Reuters) - The chairman of the House Transportation and Infrastructure Committee on Thursday urged U.S. airlines to maintain at least one seat between all passengers and cap seating at 67% of capacity on narrow-body airplanes to address the coronavirus pandemic. (Reporting by David Shepardson Editing by Chris Reese) ((David.Shepardson@thomsonreuters.com; 2028988324;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
In a letter to a group representing major airlines including Delta Air Lines DAL.N, American Airlines AAL.O, Southwest Airlines LUV.N and United Airlines UAL.O, Representative Peter DeFazio said airlines should "leave at least one seat-width of spacing between passengers and to dynamically adjust fares as needed to account for the effect on load factors." WASHINGTON, May 14 (Reuters) - The chairman of the House Transportation and Infrastructure Committee on Thursday urged U.S. airlines to maintain at least one seat between all passengers and cap seating at 67% of capacity on narrow-body airplanes to address the coronavirus pandemic. (Reporting by David Shepardson Editing by Chris Reese) ((David.Shepardson@thomsonreuters.com; 2028988324;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
In a letter to a group representing major airlines including Delta Air Lines DAL.N, American Airlines AAL.O, Southwest Airlines LUV.N and United Airlines UAL.O, Representative Peter DeFazio said airlines should "leave at least one seat-width of spacing between passengers and to dynamically adjust fares as needed to account for the effect on load factors." WASHINGTON, May 14 (Reuters) - The chairman of the House Transportation and Infrastructure Committee on Thursday urged U.S. airlines to maintain at least one seat between all passengers and cap seating at 67% of capacity on narrow-body airplanes to address the coronavirus pandemic. The airlines and their trade group did not immediately comment.
|
5871.0
|
2020-05-14 00:00:00 UTC
|
House Democrat wants U.S. airlines to cap seating because of coronavirus
|
AAL
|
https://www.nasdaq.com/articles/house-democrat-wants-u.s.-airlines-to-cap-seating-because-of-coronavirus-2020-05-14-0
|
nan
|
nan
|
By David Shepardson
WASHINGTON, May 14 (Reuters) - The chairman of the House Transportation and Infrastructure Committee on Thursday urged U.S. airlines to maintain at least one seat between all passengers and cap seating at 67% of capacity on narrow-body airplanes to address the coronavirus pandemic.
In a letter to a group representing major airlines including Delta Air Lines DAL.N, American Airlines AAL.O, Southwest Airlines LUV.N and United Airlines UAL.O, Representative Peter DeFazio said airlines should "leave at least one seat-width of spacing between passengers and to dynamically adjust fares as needed to account for the effect on load factors."
U.S. travel demand has fallen by more than 94%, which has made it easy - on most flights - for airlines to space out passengers. But a photo from a recent full transcontinental United flight has drawn concerns from lawmakers and others.
Of the top four U.S. airlines, Delta and Southwest have been limiting the sale of seats on flights to enable some social distancing onboard, while American Airlines and United Airlines Holdings UAL.O have been blocking middle seat selection, though middle seats may end up being assigned at the gate if a flight it fully booked.
After a social media backlash this week over a packed flight referenced by DeFazio, United said it would let passengers know ahead of time if their flights were going to be full and allow them to re-book on a different flight or receive a travel credit.
"Who among the CEOs of A4A carriers would want a member of their own family to be assigned to a middle seat between two potentially contagious passengers in the middle of a global pandemic?" DeFazio asked in his letter to trade group Airlines for America.
U.S. airlines, which are collectively burning more than $10 billion monthly during the crisis, have mandated facial coverings and some are blocking some seats. But they note that in order to have 6 feet (2 meters) of social distancing on airplanes in all directions, an airline could be forced to block off two-thirds or more of seats.
Frontier Airlines said last week it will require temperature checks of passengers starting June 1. Under pressure from lawmakers, it scrapped a plan to allow passengers to pay to sit next to an empty seat.
"The pandemic requires short-term adjustment on the part of every stakeholder, and the sooner we can defeat this insidious virus, the sooner the American public will feel confident about buying airline tickets and traveling again," DeFazio said.
The airlines and their trade group did not immediately comment. The Federal Aviation Administration declined to comment.
U.S. airlines have parked more than 3,000 planes, or more than 50% of the fleet and canceled 80% or more of flights in May and June.
(Reporting by David Shepardson; additional reporting by Tracie Rucinski; Editing by Chris Reese and Dan Grebler)
((David.Shepardson@thomsonreuters.com; 2028988324;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
In a letter to a group representing major airlines including Delta Air Lines DAL.N, American Airlines AAL.O, Southwest Airlines LUV.N and United Airlines UAL.O, Representative Peter DeFazio said airlines should "leave at least one seat-width of spacing between passengers and to dynamically adjust fares as needed to account for the effect on load factors." By David Shepardson WASHINGTON, May 14 (Reuters) - The chairman of the House Transportation and Infrastructure Committee on Thursday urged U.S. airlines to maintain at least one seat between all passengers and cap seating at 67% of capacity on narrow-body airplanes to address the coronavirus pandemic. U.S. airlines, which are collectively burning more than $10 billion monthly during the crisis, have mandated facial coverings and some are blocking some seats.
|
In a letter to a group representing major airlines including Delta Air Lines DAL.N, American Airlines AAL.O, Southwest Airlines LUV.N and United Airlines UAL.O, Representative Peter DeFazio said airlines should "leave at least one seat-width of spacing between passengers and to dynamically adjust fares as needed to account for the effect on load factors." Of the top four U.S. airlines, Delta and Southwest have been limiting the sale of seats on flights to enable some social distancing onboard, while American Airlines and United Airlines Holdings UAL.O have been blocking middle seat selection, though middle seats may end up being assigned at the gate if a flight it fully booked. DeFazio asked in his letter to trade group Airlines for America.
|
In a letter to a group representing major airlines including Delta Air Lines DAL.N, American Airlines AAL.O, Southwest Airlines LUV.N and United Airlines UAL.O, Representative Peter DeFazio said airlines should "leave at least one seat-width of spacing between passengers and to dynamically adjust fares as needed to account for the effect on load factors." By David Shepardson WASHINGTON, May 14 (Reuters) - The chairman of the House Transportation and Infrastructure Committee on Thursday urged U.S. airlines to maintain at least one seat between all passengers and cap seating at 67% of capacity on narrow-body airplanes to address the coronavirus pandemic. Of the top four U.S. airlines, Delta and Southwest have been limiting the sale of seats on flights to enable some social distancing onboard, while American Airlines and United Airlines Holdings UAL.O have been blocking middle seat selection, though middle seats may end up being assigned at the gate if a flight it fully booked.
|
In a letter to a group representing major airlines including Delta Air Lines DAL.N, American Airlines AAL.O, Southwest Airlines LUV.N and United Airlines UAL.O, Representative Peter DeFazio said airlines should "leave at least one seat-width of spacing between passengers and to dynamically adjust fares as needed to account for the effect on load factors." Of the top four U.S. airlines, Delta and Southwest have been limiting the sale of seats on flights to enable some social distancing onboard, while American Airlines and United Airlines Holdings UAL.O have been blocking middle seat selection, though middle seats may end up being assigned at the gate if a flight it fully booked. After a social media backlash this week over a packed flight referenced by DeFazio, United said it would let passengers know ahead of time if their flights were going to be full and allow them to re-book on a different flight or receive a travel credit.
|
5872.0
|
2020-05-14 00:00:00 UTC
|
Will United Airlines Survive the Coronavirus?
|
AAL
|
https://www.nasdaq.com/articles/will-united-airlines-survive-the-coronavirus-2020-05-14
|
nan
|
nan
|
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
While United Airlines (NASDAQ:UAL) is well off its highs, it’s still one of the largest U.S. air carriers. Sporting a market capitalization of $5.6 billion, UAL stock is the third-largest airline behind Delta Air Lines (NYSE:DAL) and Southwest Airlines (NYSE:LUV).
Source: NextNewMedia / Shutterstock.com
I previously looked at Southwest Airlines, as it was the best-performing airline stock amid the novel coronavirus pandemic. I also looked at Delta, which had some of the best financials of the group. No wonder these two stocks command a market cap that’s more than double United Airlines’ at the moment. They’re standing at $14 billion and $12 billion, respectively.
I’ll get to the numbers in a minute, but first, what did Boeing (NYSE:BA) CEO David Calhoun say earlier this week?
Putting aside the company’s own issues for a minute, he made some chilling commentary on the airline space. Calhoun argued it’s unlikely that 25% of the prior normal airline traffic will have come back by September. That figure may only be at 50% by December, while a U.S. airline may go belly up this year.
Will UAL Stock Be the First to Fall?
Unfortunately, Calhoun’s commentary represents a dark outlook for the airline space. Combined with Warren Buffett’s decision to exit his four notable investments in airline stocks due to limited future upside, it’s bleak at best.
7 Stocks to Buy That Have Nothing But Upside In Their Future
Fortunately though, it’s not likely going to be UAL stock that goes under this year — if any of them do.
The company is quickly seeing its free cash flow turn south. On a trailing basis, UAL stock has seen its free cash flow drop from $2.4 billion at the start of the year to just $190 million as of the most recent quarter. That’s a ton of cash burn to drag that figure down so significantly, so quickly.
However, at least it’s still in positive territory, unlike American Airlines (NASDAQ:AAL) and Spirit Airlines (NYSE:SAVE).
Click to Enlarge
Source: Chart courtesy of the Transportation Security Administration, via Statista
On April 30, United reported a first-quarter non-GAAP loss of $2.57 per share, beating estimates by 47 cents. However, a GAAP loss of $6.86 per share was a startling figure for investors to see. As was the 16.8% year-over-year slump in revenue to $7.98 billion, missing estimates by $230 million.
By the end of Q2, United expects its daily cash burn to average between $40 million and $45 million. Taking the midpoint of that guidance, we can assume about $3.8 billion in cash burn for the quarter.
The company said it had about $9.6 billion in total liquidity as the end of Q1, so it should be OK for now. There’s been a slight rebound in airline traffic — as noted in the graphic above — but it’s still down significantly.
That’s the case with United too, with the company saying it sees a 90% drop in its May schedule. Further, it anticipates a similar drop for June as well.
Trading United Airlines
Click to Enlarge
Source: Chart courtesy of StockCharts.com
The truly unfortunate part is the timing of the outbreak. The upcoming two quarters — Q2 and Q3 — are far and away United’s two best quarters of revenue.
While Q1 and Q3 free cash flow tend to be around the same amount, Q1 generally edges out the later quarter. However, Q2 is by far UAL stock’s biggest free cash flow quarter. It essentially generates the majority of its total annual free cash flow in that one quarter alone.
So, to know that Q2 is going to be a disaster and Q3 could be a mess, is a big concern. To that end, it’s no surprise that the airline stocks continue to struggle.
Above is a daily chart of UAL stock highlighting its stunning fall this year. On the plus side, shares aren’t making new lows. However, UAL is still down tremendously, is not participating in the broader market rally and remains below both downtrend resistance and key short-term moving averages.
For bulls to have a chance, they need to see UAL stock maintain $21.50. A close below this mark — which is essentially the April low — puts the 2020 lows near $18 in play. To have any momentum, bulls need to see UAL stock close above downtrend resistance and the 20-day moving average. Until it does, lower prices could be on the way.
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 Will United Airlines Survive the Coronavirus? 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.
|
However, at least it’s still in positive territory, unlike American Airlines (NASDAQ:AAL) and Spirit Airlines (NYSE:SAVE). Combined with Warren Buffett’s decision to exit his four notable investments in airline stocks due to limited future upside, it’s bleak at best. On a trailing basis, UAL stock has seen its free cash flow drop from $2.4 billion at the start of the year to just $190 million as of the most recent quarter.
|
However, at least it’s still in positive territory, unlike American Airlines (NASDAQ:AAL) and Spirit Airlines (NYSE:SAVE). InvestorPlace - Stock Market News, Stock Advice & Trading Tips While United Airlines (NASDAQ:UAL) is well off its highs, it’s still one of the largest U.S. air carriers. Sporting a market capitalization of $5.6 billion, UAL stock is the third-largest airline behind Delta Air Lines (NYSE:DAL) and Southwest Airlines (NYSE:LUV).
|
However, at least it’s still in positive territory, unlike American Airlines (NASDAQ:AAL) and Spirit Airlines (NYSE:SAVE). InvestorPlace - Stock Market News, Stock Advice & Trading Tips While United Airlines (NASDAQ:UAL) is well off its highs, it’s still one of the largest U.S. air carriers. Sporting a market capitalization of $5.6 billion, UAL stock is the third-largest airline behind Delta Air Lines (NYSE:DAL) and Southwest Airlines (NYSE:LUV).
|
However, at least it’s still in positive territory, unlike American Airlines (NASDAQ:AAL) and Spirit Airlines (NYSE:SAVE). Sporting a market capitalization of $5.6 billion, UAL stock is the third-largest airline behind Delta Air Lines (NYSE:DAL) and Southwest Airlines (NYSE:LUV). 7 Stocks to Buy That Have Nothing But Upside In Their Future Fortunately though, it’s not likely going to be UAL stock that goes under this year — if any of them do.
|
5873.0
|
2020-05-14 00:00:00 UTC
|
Warren Buffett Sold Southwest Airlines Stock Way Too Early
|
AAL
|
https://www.nasdaq.com/articles/warren-buffett-sold-southwest-airlines-stock-way-too-early-2020-05-14
|
nan
|
nan
|
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Thanks to the novel coronavirus, airline stocks are seriously suffering. Southwest Airlines (NYSE:LUV) fell from $58 to $25.80. But LUV stock isn’t alone.
Since peaking at $30.78 in February 2020, American Airlines (NASDAQ:AAL) plunged to $9.56. Delta Air Lines (NYSE:DAL) fell from $60 to $22. United Airlines (NASDAQ:UAL) plummeted from $84 to less than $24. Spirit Airlines (NYSE:SAVE) fell from $44 to less than $10.
Source: Carlos E. Santa Maria / Shutterstock.com
These stocks have all been decimated by stay-at-home orders, travel restrictions and earnings disasters.
Worse, according to Cowen analyst Helane Becker, “Most airline managements are realizing that domestic traffic will be slow to recover, in part because the country is opening at different times. Until various quarantines are lifted and most people get back to work we do not see any recovery for air traffic.”
News that Warren Buffett’s Berkshire Hathaway (NYSE:BRK.A, NYSE:BRK.B) just sold all of its airline holdings didn’t help. However, it appears Buffett may have overreacted by selling too early. After all, as Buffett himself used to say, “be fearful when others are greedy, and greedy when others are fearful.”
While I wouldn’t back up the truck on airline stocks, they have become some of the top blood-in-the-street opportunities. That includes LUV stock, which could recover to $57 in the long term.
Berkshire Hathaway Sold Airlines Too Early
As I pointed out earlier this week, Warren Buffett sold out of fear. Part of his reasoning:
“I don’t know whether it’s two or three years from now that as many people will fly as many passenger miles as they did last year. The future is much less clear to me about how the business will turn out through absolutely no fault of the airlines themselves.”
I agree with Southwest Airlines CEO Gary Kelly who says Buffett is being far too pessimistic.
7 Stocks to Buy That Have Nothing But Upside In Their Future
“It’s a pessimistic one. I am far more optimistic,” Kelly said in regards to Buffett’s reasoning. In addition, the CEO said he doesn’t believe the industry will see a sustained downturn in air travel. “I believe this too shall pass. You go back to the Spanish Flu in 1918, it was followed by the roaring 20’s. Life will get back to normal. It is a question of how long that is going to take.”
Plus, as I noted earlier this week, Kelly recently told Face the Nation that it’s safe to fly again. “I don’t think the risk on an airplane is any greater risk than anywhere else,” Kelly said. “I think we’ve seen the bottom here in April. Each week after the first week of April has gotten successively better. I think May will be better than April was. I don’t think June will be a good month, but hopefully it will be a bit better than May.”
LUV Stock May Already Reflect the Worst-Case Scenario
Again, I wouldn’t back up the truck on airline names like LUV stock just yet. But, they have become top buying opportunities at current prices.
Results at Southwest Airlines could get a lot worse in the second quarter of 2020. In fact, the company has already said April 2020 revenues will decrease 90% to 95% year-over-year. Available seat miles could fall about 60% year-over-year. May 2020 operating revenues could also fall, with capacity falling in a range of 60%-70% as well.
However, LUV says its daily cash burn rate could decrease to $30 million to $35 million in the second quarter, as compared to earlier expectations for a range of $60 million to $65 million.
Also, a good deal of negativity may be fully priced into the stock. While LUV stock isn’t going to recover overnight, it’s still one of the safest bets in the airline industry.
With time, plenty of patience and an eventual return to normalcy, LUV stock could return to $57.
Ian Cooper, an InvestorPlace.com contributor, has been analyzing stocks and options for web-based advisories since 1999. As of this writing, Ian Cooper did not hold a position in any of the aforementioned securities.
The post Warren Buffett Sold Southwest Airlines Stock Way Too Early 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.
|
Since peaking at $30.78 in February 2020, American Airlines (NASDAQ:AAL) plunged to $9.56. Source: Carlos E. Santa Maria / Shutterstock.com These stocks have all been decimated by stay-at-home orders, travel restrictions and earnings disasters. Worse, according to Cowen analyst Helane Becker, “Most airline managements are realizing that domestic traffic will be slow to recover, in part because the country is opening at different times.
|
Since peaking at $30.78 in February 2020, American Airlines (NASDAQ:AAL) plunged to $9.56. Southwest Airlines (NYSE:LUV) fell from $58 to $25.80. Until various quarantines are lifted and most people get back to work we do not see any recovery for air traffic.” News that Warren Buffett’s Berkshire Hathaway (NYSE:BRK.A, NYSE:BRK.B) just sold all of its airline holdings didn’t help.
|
Since peaking at $30.78 in February 2020, American Airlines (NASDAQ:AAL) plunged to $9.56. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Thanks to the novel coronavirus, airline stocks are seriously suffering. Until various quarantines are lifted and most people get back to work we do not see any recovery for air traffic.” News that Warren Buffett’s Berkshire Hathaway (NYSE:BRK.A, NYSE:BRK.B) just sold all of its airline holdings didn’t help.
|
Since peaking at $30.78 in February 2020, American Airlines (NASDAQ:AAL) plunged to $9.56. Southwest Airlines (NYSE:LUV) fell from $58 to $25.80. But LUV stock isn’t alone.
|
5874.0
|
2020-05-14 00:00:00 UTC
|
U.S. stocks futures fall on fears of prolonged economic downturn
|
AAL
|
https://www.nasdaq.com/articles/u.s.-stocks-futures-fall-on-fears-of-prolonged-economic-downturn-2020-05-14
|
nan
|
nan
|
By Medha Singh
May 14 (Reuters) - Wall Street's main indexes were set to extend declines on Thursday, following two prior sessions of losses, as investors worried the current economic downturn might be here for longer than initially presumed.
Futures fell further after data showed 2.98 million Americans filed for state unemployment benefits last week, higher than economists' estimates and cementing expectations for a third straight month of massive job losses in May.
However, this marked the sixth straight weekly drop in jobless claims, since topping 6 million in the final week of March.
The three main stock indexes are now headed for their worst week since mid-March, as hopes of a quick economic recovery were dashed this week following sobering comments from Federal Reserve Chairman Jerome Powell and leading U.S. infectious disease expert Anthony Fauci.
Wall Street's fear gauge, the CBOE volatility index .VIX rose for the third straight day, hovering near a 10-day high.
"Powell's comments sent a reminder to equity bulls that the economy cannot be turned on by a switch and when it begins to recover, it may be more gradual than hoped," said Hussein Sayed, chief market strategist at FXTM.
The focus now turns to retail sales data on Friday that will reflect the impact of stay-at-home orders on the U.S. consumer in April.
A new report indicated credit card spending among some of JP Morgan Chase & Co's U.S. customers fell 40% during March and early April compared to last year.
"Our expectation is that the last two, maybe three weeks is probably the worst that we'll see from the economic data, because states are opening, we should see a gradual recovery," said Paul Nolte, portfolio manager at Kingsview Asset Management in Chicago.
At 8:46 a.m. ET, Dow e-minis 1YMcv1 were down 337 points, or 1.45%. S&P 500 e-minis EScv1 were down 32.75 points, or 1.16% and Nasdaq 100 e-minis NQcv1 were down 92 points, or 1.02%.
Beaten-down travel stocks including United Airlines Holdings Inc UAL.O, American Airlines Group Inc AAL.O, hotel operator Marriott International Inc MAR.O fell between 2.3% and 5.2% premarket.
Norwegian Cruise Line Holdings Ltd NCLH.N dropped 4.5% as it swung to a quarterly loss due to a virtual standstill in global travel earlier this year.
Among other stocks, Cisco Systems Inc CSCO.O rose 1.1% after beating quarterly revenue and profit estimates, as lockdowns globally boosted demand for its remote-work tools and networking equipment.
The earnings season is in its final stretch with 448 S&P 500 companies having reported so far. On average, first-quarter earnings are expected to fall 12.2%, according to Refinitiv data.
(Reporting by Medha Singh and Ambar Warrick in Bengaluru; Editing by Shounak Dasgupta)
((Medha.Singh@thomsonreuters.com; within U.S. +1646 223 8780, outside U.S. +91 80 6749 1130; Twitter: https://twitter.com/medhasinghs))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Beaten-down travel stocks including United Airlines Holdings Inc UAL.O, American Airlines Group Inc AAL.O, hotel operator Marriott International Inc MAR.O fell between 2.3% and 5.2% premarket. By Medha Singh May 14 (Reuters) - Wall Street's main indexes were set to extend declines on Thursday, following two prior sessions of losses, as investors worried the current economic downturn might be here for longer than initially presumed. Futures fell further after data showed 2.98 million Americans filed for state unemployment benefits last week, higher than economists' estimates and cementing expectations for a third straight month of massive job losses in May.
|
Beaten-down travel stocks including United Airlines Holdings Inc UAL.O, American Airlines Group Inc AAL.O, hotel operator Marriott International Inc MAR.O fell between 2.3% and 5.2% premarket. By Medha Singh May 14 (Reuters) - Wall Street's main indexes were set to extend declines on Thursday, following two prior sessions of losses, as investors worried the current economic downturn might be here for longer than initially presumed. Futures fell further after data showed 2.98 million Americans filed for state unemployment benefits last week, higher than economists' estimates and cementing expectations for a third straight month of massive job losses in May.
|
Beaten-down travel stocks including United Airlines Holdings Inc UAL.O, American Airlines Group Inc AAL.O, hotel operator Marriott International Inc MAR.O fell between 2.3% and 5.2% premarket. Futures fell further after data showed 2.98 million Americans filed for state unemployment benefits last week, higher than economists' estimates and cementing expectations for a third straight month of massive job losses in May. The three main stock indexes are now headed for their worst week since mid-March, as hopes of a quick economic recovery were dashed this week following sobering comments from Federal Reserve Chairman Jerome Powell and leading U.S. infectious disease expert Anthony Fauci.
|
Beaten-down travel stocks including United Airlines Holdings Inc UAL.O, American Airlines Group Inc AAL.O, hotel operator Marriott International Inc MAR.O fell between 2.3% and 5.2% premarket. By Medha Singh May 14 (Reuters) - Wall Street's main indexes were set to extend declines on Thursday, following two prior sessions of losses, as investors worried the current economic downturn might be here for longer than initially presumed. Futures fell further after data showed 2.98 million Americans filed for state unemployment benefits last week, higher than economists' estimates and cementing expectations for a third straight month of massive job losses in May.
|
5875.0
|
2020-05-13 00:00:00 UTC
|
Airlines Get a Reprieve, but Also a Warning
|
AAL
|
https://www.nasdaq.com/articles/airlines-get-a-reprieve-but-also-a-warning-2020-05-13
|
nan
|
nan
|
Airlines that took bailout funds will now have more flexibility to cancel routes, according to new rules issued by the Transportation Department on Tuesday. But the government is also warning airlines to issue refunds for canceled flights, and analysts are continuing to take down earnings estimates, pushing out the timeline for a recovery.
The market’s early verdict on the government’s new rules appears to be that it’s too little, too late. Shares of United Arilnes Holdings (ticker: UAL) were down almost 10% near midday Wednesday. Delta Air Lines (DAL) and American Airlines Group (AAL) slumped more than 8% and Southwest Airlines (LUV) was off 6%. United’s stock, around $20.40, is trading below its March lows and below its lowest closing price since Dec. 10, 2012. The stock has lost more than 16% in the past three trading days and is down more than 76% this year.
Airlines have been required to maintain minimum levels of passenger service as a condition of receiving upward of $10 billion in bailout funding under the Cares Act. The Transportation Department revised those guidelines, announcing Tuesday that airlines could apply for more route cuts by May 18. Airlines can apply to suspend service in 5% of their markets or five total markets (points of service between two destinations), whichever is greater. The rules are designed to ensure that no airports lose passenger air service entirely; if only one carrier remains in a market, it will have to keep flying, even if flights are largely empty.
Separately, Transportation Secretary Elaine Chao warned airlines to issue ticket refunds for canceled flights. Complaints about airlines withholding refunds have skyrocketed. More than 25,000 complaints were filed with the DOT in March and April, up from 1,500 complaints in a typical month. Many of the recent complaints related to refunds. The DOT issued a second “enforcement notice” to airlines to process passenger requests for their money back (rather than issuing credits), though it is unclear how it would be enforced.
Demand for air travel appears to be inching back from historic lows, based on passenger screening data, but it remains less than 10% of precrisis levels. Many airlines have applied for service exemptions because they are flying nearly empty planes on routes “where demand is essentially zero,” the Transportation Department said.
That is uneconomic, of course, and it has contributed to airlines burning through millions of dollars in cash a day.
Analysts said the easing of service requirements comes as a relief from rules that were making a bad financial situation even worse.
“We view the Transportation Department (DOT)’s decision to provide some service cancellation flexibility to the U.S. airlines as marginally positive, as it could provide the group a modicum of daily cash burn relief,” Citi analyst Stephen Trent wrote in a note on Wednesday. He said that “maintaining some flights at very low load factors / utilization rates could actually burn more cash than simply grounding such service.”
Nonetheless, analysts continued to push out the timeline for a recovery in industry profitability.
https://asset.barrons.com/dj-mg/dice/barrons-staffpicks-2d590600-c862-4394-b9d3-66b48c376d60/inset.json
Raymond James analyst Savanthi Syth took down her earnings estimates for Allegiant Travel (ALGT), Mesa Air Group (MESA), JetBlue Airways (JBLU), and Spirit Airlines (SAVE) in a series of notes this week.
She downgraded Spirit to a Market Perform rating, noting that the airline’s equity will be diluted by up to 49%, following “disappointing” equity and convertible-debt offerings last week. Spirit should have enough cash and liquidity to last 13 months, but she expects a slower earnings recovery at the budget airline, relative to other carriers.
Syth also downgraded regional carrier Mesa from a Strong Buy to an Outperform with a $6.50 price target (down from $8 previously). Mesa is forging ahead with a planned cargo operation expected to debut in September, she notes. But Mesa’s contract as a regional carrier for American remains a lingering concern as American cuts back on flights and reduces capacity.
JetBlue is making strides to reduce its cash burn and could pick up market share, but Syth doesn’t see much upside in the stock, maintaining a Neutral rating (without a price target).
One stock she does favor is Allegiant. The budget carrier should have enough cash to last 16 months, and it is “refocusing on its roots,” halting non-airline projects and getting back to buying “mid-life, out-of-favor aircraft,” she writes. Allegiant could pick up aircraft at distressed-asset bargain prices. And its focus on domestic leisure travel could make it a winner if that market rebounds quicker than international and business travel.
Syth has a $115 price target on the stock, up from around $76.
Write to Daren Fonda at daren.fonda@barrons.com
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Delta Air Lines (DAL) and American Airlines Group (AAL) slumped more than 8% and Southwest Airlines (LUV) was off 6%. Airlines have been required to maintain minimum levels of passenger service as a condition of receiving upward of $10 billion in bailout funding under the Cares Act. He said that “maintaining some flights at very low load factors / utilization rates could actually burn more cash than simply grounding such service.” Nonetheless, analysts continued to push out the timeline for a recovery in industry profitability.
|
Delta Air Lines (DAL) and American Airlines Group (AAL) slumped more than 8% and Southwest Airlines (LUV) was off 6%. But the government is also warning airlines to issue refunds for canceled flights, and analysts are continuing to take down earnings estimates, pushing out the timeline for a recovery. “We view the Transportation Department (DOT)’s decision to provide some service cancellation flexibility to the U.S. airlines as marginally positive, as it could provide the group a modicum of daily cash burn relief,” Citi analyst Stephen Trent wrote in a note on Wednesday.
|
Delta Air Lines (DAL) and American Airlines Group (AAL) slumped more than 8% and Southwest Airlines (LUV) was off 6%. “We view the Transportation Department (DOT)’s decision to provide some service cancellation flexibility to the U.S. airlines as marginally positive, as it could provide the group a modicum of daily cash burn relief,” Citi analyst Stephen Trent wrote in a note on Wednesday. https://asset.barrons.com/dj-mg/dice/barrons-staffpicks-2d590600-c862-4394-b9d3-66b48c376d60/inset.json Raymond James analyst Savanthi Syth took down her earnings estimates for Allegiant Travel (ALGT), Mesa Air Group (MESA), JetBlue Airways (JBLU), and Spirit Airlines (SAVE) in a series of notes this week.
|
Delta Air Lines (DAL) and American Airlines Group (AAL) slumped more than 8% and Southwest Airlines (LUV) was off 6%. Airlines that took bailout funds will now have more flexibility to cancel routes, according to new rules issued by the Transportation Department on Tuesday. But the government is also warning airlines to issue refunds for canceled flights, and analysts are continuing to take down earnings estimates, pushing out the timeline for a recovery.
|
5876.0
|
2020-05-13 00:00:00 UTC
|
Stock Market News: Why Airline Stocks Are Losing Altitude Again
|
AAL
|
https://www.nasdaq.com/articles/stock-market-news%3A-why-airline-stocks-are-losing-altitude-again-2020-05-13
|
nan
|
nan
|
The stock market moved lower on Wednesday morning, reacting negatively to comments from Federal Reserve Chair Jay Powell. Powell painted an ugly picture of what the future might bring, noting all the challenges that the economy will face in trying to recover from the severe disruptions that the coronavirus pandemic has caused. As of 11:15 a.m. EDT, the Dow Jones Industrial Average (DJINDICES: ^DJI) was down 227 points to 23,537. The S&P 500 (SNPINDEX: ^GSPC) fell 15 points to 2,855, and the Nasdaq Composite (NASDAQINDEX: ^IXIC) eased lower by 15 points to 8,988.
Leading stocks lower were airlines, with significant losses for major carriers and smaller companies alike. With so much doubt about whether travel will ever be the same, investors are fearful about the long-term prospects for airlines and their ability to make changes that reflect a new normal in a post-coronavirus world.
Image source: Getty Images.
Downbeat words from Boeing
The latest reality check for airlines came from aircraft manufacturer Boeing (NYSE: BA). On Tuesday, the company's CEO David Calhoun predicted that a major carrier would likely be forced to file for bankruptcy protection within the next several months. Calhoun didn't offer which airline he thought would be a casualty of the fallout from the coronavirus pandemic, but investors took the statement as a blanket condemnation of the industry's prospects.
On Wednesday morning, United Airlines Holdings (NASDAQ: UAL) took the hardest hit among the top four airlines, falling almost 9%. Delta Air Lines (NYSE: DAL) and American Airlines Group (NASDAQ: AAL) suffered 6% declines, while Southwest Airlines (NYSE: LUV) fell 5%.
Yet the damage wasn't limited to the major carriers. Spirit Airlines (NYSE: SAVE) saw the biggest drop of nearly 14%, but JetBlue Airways (NASDAQ: JBLU), Alaska Air Group (NYSE: ALK), and Hawaiian Holdings (NASDAQ: HA) were all down 5% to 7%.
Is there a future for airline stocks?
The problem lies in how little room airlines have to adapt to a new normal. Calhoun said that even four months from now, traffic could be just a quarter of what it was before the pandemic. He suggested that it could be 2025 before air travel fully recovers.
In the interim, airlines have to deal with multiple challenges. Coronavirus-related policies like mask-wearing requirements are running into resistance from passengers, while efforts to leave distance on flights will require the companies to accept revenue-losing empty seats. Having taken assistance from the federal government, airlines now have stakeholders with different priorities than their traditional shareholders. Moreover, there's little assurance that the liquidity that they've gotten will be adequate to weather an extended period of weaker business conditions.
Nevertheless, airline executives are trying to remain optimistic. Southwest and JetBlue both believe that the worst of the damage came in April, and the question now will be whether the industry can mount a comeback that will get passengers back in the skies safely and in greater numbers.
With so much doubt about the coronavirus itself, coming up with those safety measures will be tough in the near term. Today's declines in airline stocks show that investors don't have the confidence they once had that the carriers will be able to get through the current turbulence unscathed.
10 stocks we like better than Boeing
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 Boeing 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 April 16, 2020
Dan Caplinger owns shares of Boeing. 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.
|
Delta Air Lines (NYSE: DAL) and American Airlines Group (NASDAQ: AAL) suffered 6% declines, while Southwest Airlines (NYSE: LUV) fell 5%. Powell painted an ugly picture of what the future might bring, noting all the challenges that the economy will face in trying to recover from the severe disruptions that the coronavirus pandemic has caused. Calhoun didn't offer which airline he thought would be a casualty of the fallout from the coronavirus pandemic, but investors took the statement as a blanket condemnation of the industry's prospects.
|
Delta Air Lines (NYSE: DAL) and American Airlines Group (NASDAQ: AAL) suffered 6% declines, while Southwest Airlines (NYSE: LUV) fell 5%. Spirit Airlines (NYSE: SAVE) saw the biggest drop of nearly 14%, but JetBlue Airways (NASDAQ: JBLU), Alaska Air Group (NYSE: ALK), and Hawaiian Holdings (NASDAQ: HA) were all down 5% to 7%. The Motley Fool recommends Alaska Air Group, Delta Air Lines, Hawaiian Holdings, JetBlue Airways, and Southwest Airlines.
|
Delta Air Lines (NYSE: DAL) and American Airlines Group (NASDAQ: AAL) suffered 6% declines, while Southwest Airlines (NYSE: LUV) fell 5%. Spirit Airlines (NYSE: SAVE) saw the biggest drop of nearly 14%, but JetBlue Airways (NASDAQ: JBLU), Alaska Air Group (NYSE: ALK), and Hawaiian Holdings (NASDAQ: HA) were all down 5% to 7%. The Motley Fool recommends Alaska Air Group, Delta Air Lines, Hawaiian Holdings, JetBlue Airways, and Southwest Airlines.
|
Delta Air Lines (NYSE: DAL) and American Airlines Group (NASDAQ: AAL) suffered 6% declines, while Southwest Airlines (NYSE: LUV) fell 5%. Yet the damage wasn't limited to the major carriers. * David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Boeing wasn't one of them!
|
5877.0
|
2020-05-13 00:00:00 UTC
|
Beleaguered American Airlines Stock May Have Nearly 80% Upside From Here
|
AAL
|
https://www.nasdaq.com/articles/beleaguered-american-airlines-stock-may-have-nearly-80-upside-from-here-2020-05-13
|
nan
|
nan
|
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
A tug of war is brewing between the airline bulls and bears. Ever since the novel coronavirus outbreak sent airline traffic lower, shares of American Airlines (NASDAQ:AAL) hammered down to the $10 level. Buyers tried to send AAL stock back by 30%-50%. But optimism continues to wane as markets evaluate the sector’s prospects.
Source: GagliardiPhotography / Shutterstock.com
AAL stock will more likely suit traders. Why? For starters, legendary investor Warren Buffet sold his entire stake in airline stocks.
Buffett revealed that his Berkshire Hathaway (NYSE:BRK.A, NYSE:BRK.B) dump all airline stocks from its portfolio. He said that he was wrong about the business. When he started a position in American and United Airlines (NASDAQ:UAL), he thought that he bought the business at an attractive price. But the Covid-19 pandemic forced countries to close their borders to foreigners. Domestic and international business travel fell to practically zero (down more than 90% from last year). And tourism is not on anyone’s near-term plans, either. [Which, see: Carnival Corporation (NYSE:CCL), Royal Caribbean Cruises (NYSE:RCL)]
Dallas-based American is managing costs and watching its cash flow drain day by day. It cannot predict passenger miles volumes. For now, the market is content with a $4.84 billion market cap at the $10 a share price. That reflects the 18.9% drop in revenue passenger miles in the first quarter. Its load factor fell from 83.1% last year to 73.9%.
7 Dividend Stocks That May Be in Danger
High Cash Burn
The second quarter will include more weeks of the lockdown. American ended Q1 with $6.8 billion in liquidity, which included $2 billion generated in the period. Management forecasts a $70 million daily cash burn rate for the current (second) quarter. In June, the burn rate will fall to $50 million a day.
Industry trade group Airlines for America in a prepared Senate testimony last week that U.S. airlines are allegedly losing $10 billion a month. The sector already grounded half of the U.S. fleet. At 17 passengers per domestic flight, the business is not sustainable without government help. The Treasury’s $25 billion of cash grants to airlines will sustain the paycheck of airline employees until Sept. 30. But until the U.S. fully contains the virus, flight bookings will not increase in the near-term.
When the commitment to not furlough employees through Sept. 30 ends, airlines will get smaller paychecks. Fewer hourly workers will obviously lower American’s costs.
Protecting Staff and Passengers
On May 4, a number of airlines began requiring passengers to wear a face mask while traveling. American followed with the same requirement in an announcement a week later. Representatives said that “this new requirement is part of the airline’s ongoing commitment to prioritizing customer and team member well-being in response to the coronavirus pandemic.”
7 of the Best Consumer Stocks to Buy Right Now
The more safety procedures put in place at airlines, the less likely that anyone gets infected by the virus. As the pandemic crests and falls sharply, this will ultimately accelerate the demand rebound in air travel.
Valuation and Your Takeaway
American stock has a fair value of $18.05, implying a margin of safety of 78%. The stock suffers from a low sentiment score compared to the S&P 500 index:
Stock Industry S&P 500
Sentiment Score 24 28 69
5‑Day Return -4.70% -5.50% 3.50%
1‑Month Return -10.50% -6.20% 6.50%
YTD Return -64.50% -54.60% -8.80%
Data courtesy of Stock Rover
Screening against Southwest Airlines (NYSE:LUV), Spirit Airlines (NYSE:SAVE) and UAL, American scores the lowest. Still, on Wall Street, the average price target on American stock is $13.82 but more analysts rank the stock as a sell than as a buy. (To get updated scores in real-time, download this text file and import it into Stock Rover.)
For now, American Airlines is a gamble for speculators. Value investors should wait for more evidence that airline traffic is improving at a sharp pace. Until then, add airline stocks to a watch list for future investing.
Chris Lau, contributing author for InvestorPlace.com and numerous other financial sites. Chris has over 20 years of investing experience in the stock market and runs the Do-It-Yourself Value Investing Marketplace on Seeking Alpha. He shares his stock picks so readers get original insight that helps improve investment returns. As of this writing, he did not hold a position in any of the aforementioned securities.
The post Beleaguered American Airlines Stock May Have Nearly 80% Upside From Here 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.
|
Ever since the novel coronavirus outbreak sent airline traffic lower, shares of American Airlines (NASDAQ:AAL) hammered down to the $10 level. Buyers tried to send AAL stock back by 30%-50%. Source: GagliardiPhotography / Shutterstock.com AAL stock will more likely suit traders.
|
Ever since the novel coronavirus outbreak sent airline traffic lower, shares of American Airlines (NASDAQ:AAL) hammered down to the $10 level. Buyers tried to send AAL stock back by 30%-50%. Source: GagliardiPhotography / Shutterstock.com AAL stock will more likely suit traders.
|
Ever since the novel coronavirus outbreak sent airline traffic lower, shares of American Airlines (NASDAQ:AAL) hammered down to the $10 level. Buyers tried to send AAL stock back by 30%-50%. Source: GagliardiPhotography / Shutterstock.com AAL stock will more likely suit traders.
|
Ever since the novel coronavirus outbreak sent airline traffic lower, shares of American Airlines (NASDAQ:AAL) hammered down to the $10 level. Buyers tried to send AAL stock back by 30%-50%. Source: GagliardiPhotography / Shutterstock.com AAL stock will more likely suit traders.
|
5878.0
|
2020-05-13 00:00:00 UTC
|
3 Stocks Millennials Are Betting Big on Right Now
|
AAL
|
https://www.nasdaq.com/articles/3-stocks-millennials-are-betting-big-on-right-now-2020-05-13
|
nan
|
nan
|
As the COVID-19 epidemic drags on, and unemployment rises, online equity trading platforms are seeing a surge in use and new sign-ups. The Robinhood app saw Q1 deposits increase by 300% year-over-year, while the popular social trading app eToro saw a 220% growth in trading use. The demographic breakdown of the new online traders makes a more interesting story, however. Data from the Wealthsimple Trade platform shows that 55% of new users are under age 35.
The migration of Millennials to online trading should not come as a surprise. Jeff Bishop, founder of Raging Bull Trading, notes, “A lot of people are at home and have got more time on their hands. And many, unfortunately, have lost their jobs and are looking for new opportunities.” Bishop goes on to add that, “Younger investors are looking for ways to recoup their money. They’re really interested in low, beat-up stocks.”
With this in mind, we’ve delved into three top choices of Millennial traders, according to Robinhood, and found a profile that makes sense young investors seeking to build a lifetime portfolio: blue chip stalwarts, facing tough times now, but holding strong niches. Using TipRanks’ Stock Comparison tool, we lined up the three alongside each other to get the lowdown on what the near-term holds for these beat-up stocks.
Boeing Company (BA)
The coronavirus epidemic, with the lockdowns, shutdowns, and travel restrictions governments have put in place to combat the spread, could not have come at a worse time for Boeing. The aircraft manufacturer was already facing serious difficulty, due to the 13-month long grounding of the 737-MAX 8, the most popular model of its most popular commercial airliner. Continuing production lines on other commercial jets and strong sales of the F/A-18E/F Super Hornet fighter were only partially compensating for the losses in the MAX 8 program.
The travel restriction put in place against COVID-19 pandemic are a bigger blow. Air travel is deeply depressed, and airlines are cutting routes, mothballing aircraft, and furloughing workers – and that has now trickled back to Boeing. The company saw Q4 losses of $2.33 per share when the MAX 8 did not reenter production, and in Q1, with coronavirus in full swing, saw additional losses of $1.70 per share. Despite recording $16.9 billion in Q1 revenue, Boeing was in the red by $641 million. The company is now considering cutting the work rolls by 10%.
But Millennial investors are moving into BA shares. At first glance, it is hard to see why. While the overall markets have rallied since hitting the March 23 low point, BA shares have failed to gain traction. The stock is down 60% year-to-date, and has been trending downwards since early April.
This, however, also shows why Millennials are buying in. Boeing is at a 3.5-year low price, and the company remains fundamentally sound. While the MAX 8 lines are shut down, Boeing still produces the 777 and 787 airliner families, along with a variety of military and aerospace airframes. With almost half of all the world’s operational airlines being Boeing products, commercial maintenance work alone will keep the company viable long term.
5-star analyst Josh Sullivan, of Benchmark, sees a strong case to buy into Boeing, and gives the stock a Buy rating. His $180 price target suggests an upside of 48% over the next 12 months. (To watch Sullivan’s track record, click here)
Defending his bullish stance, Sullivan also explains why Millennials – or anyone seeking a long-term holding – should look at Boeing. In particular, he points out that the company’s airliners will remain in demand, as they are essential to air travel networks: “The 737-MAX program is anticipated to begin production at low rates this year and climb to 31/month next ... Overall, the 737-MAX program carries the most weight and the adjustments in wide-body production provide a base-line.”
All in all, Wall Street is cautious on BA. The stock has received 18 analyst reviews recently, with a breakdown of 6 Buy, 11 Hold, and 1 Sell, making the consensus rating a Moderate Buy. The 12-month average price target of $163.18, indicates confidence in a healthy 34% upside potential. (See Boeing stock analysis on TipRanks)
American Airlines (AAL)
Measured by fleet size, scheduled passengers carried, and revenue per passenger mile, American Airlines is the world’s largest. Before the coronavirus grounded most air traffic, American was operating 6,800 daily flights to 350 destinations in 50 countries around the world.
American was showing quarterly profits up until the coronavirus struck. In Q4, the company reported earnings of $1.15 per share – but that has turned sharply negative in Q1. AAL showed a net loss of $2.65 in the first quarter, 22% worse than expected, and the losses are expected to worsen in Q2, to as much as $7.35. American had not posted a quarterly loss since 2013. The company is also burning $70 million in cash per day in the current quarter, but expects that figure to fall by nearly 30% by the end of June.
After absorbing the $2.24 billion net loss in Q1, AAL, like Boeing, suspended its dividend and buyback plans. Prior to this, the company has paid out 10 cents per share quarterly, reliably, for 6 years. Company management has put a priority on maintaining the balance sheet, with renewal of the dividend to come after air travel returns to more normal patterns.
Cowen's 5-star analyst Helane Becker is sanguine that American can weather the current storm. She writes of the company, “[AAL] is receiving a total of $10.6 Bn in aid through the CARES Act. We expect another capital raise in 3Q20, likely against their unencumbered asset base. In the near-term the company is taking action on the fleet by removing 100 aircraft to eliminate fleet complexity. American needs to continue to aggressively manage costs until revenues show signs of improving.”
Her cautiously optimistic line on the stock supports a Buy rating and a $15 price target. Becker’s target implies a robust upside potential of 48% in the coming year, reflecting the necessity of air travel in the modern world. (To watch Becker’s track record, click here)
Overall, Wall Street isn’t quite ready to go all in on AAL. The stock has 17 reviews, including 4 Buys, 5 Holds, and 8 Sells. The share price, however, is an affordable $9.09, and the lost cost of entry does help mitigate risk. The average price target of $13.92 suggests an upside potential of 53%. (See American Airlines stock analysis on TipRanks)
Walt Disney (DIS)
Of the three stocks in this list, only Walt Disney turned a profit in Q1. Even so, the 60 cents per share recorded for the first quarter missed the forecast by 27%. Quarterly earnings were also down 60% sequentially and 62% year-over-year. As a cost-saving move, Disney, like the companies above, has suspended its dividend. The next semi-annual payment was due to go out in July; by cutting it, Disney haves $1.6 billion.
There were some positive notes, and they show why Disney remains a solid long-term stock play. Quarterly revenues were up some 20%, to $18 billion. Theme park attendance was shut down during the lockdowns, but media network sales were up. Disney+, the company’s new streaming service, reached 54 million subscribers in the quarter. It was an impressive gain – more than 4.5 million in less than one month – that beat company forecasts and also bodes well for future media profits.
Looking further forward, Disney management has announced that it is starting to phase open the theme parks, starting with Disney Shanghai this week. The cut to theme parks accounted for nearly $1 billion of the quarterly loss; reopening them will go along way toward restoring Disney’s financial performance. Disney facilities in Orlando are scheduled to start reopening on May 20.
JPMorgan analyst Alexia Quadrani sees hope for Disney in the reactivation of the theme parks. She writes, “…we continue to model domestic parks reopening on July 1. We also note that Disney World is still taking reservations starting June 1, while Disneyland in California pushed back reservations to July 1 from June 1 prior, but nevertheless this still suggests the park could reopen by July 1. We view any reopening of the parks as financially beneficial for Disney as even low capacity can help offset the fixed cost base…”
Assuming that the parks will reopen as announced, Quadrani rates DIS shares a Buy, with a $135 price target suggesting a healthy upside of 31%. (To watch Quadrani’s track record, click here)
Disney’s overall rating almost evenly split. The stock’s 23 analyst ratings include 12 Buys, along with 10 Holds and 1 Sell, making the consensus view a Moderate Buy. DIS shares have an average price target of $121.05, indicating a 17% premium from the current trading price of $103.24. (See Disney stock analysis on TipRanks)
To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
(See Boeing stock analysis on TipRanks) American Airlines (AAL) Measured by fleet size, scheduled passengers carried, and revenue per passenger mile, American Airlines is the world’s largest. AAL showed a net loss of $2.65 in the first quarter, 22% worse than expected, and the losses are expected to worsen in Q2, to as much as $7.35. After absorbing the $2.24 billion net loss in Q1, AAL, like Boeing, suspended its dividend and buyback plans.
|
(See Boeing stock analysis on TipRanks) American Airlines (AAL) Measured by fleet size, scheduled passengers carried, and revenue per passenger mile, American Airlines is the world’s largest. AAL showed a net loss of $2.65 in the first quarter, 22% worse than expected, and the losses are expected to worsen in Q2, to as much as $7.35. After absorbing the $2.24 billion net loss in Q1, AAL, like Boeing, suspended its dividend and buyback plans.
|
(See Boeing stock analysis on TipRanks) American Airlines (AAL) Measured by fleet size, scheduled passengers carried, and revenue per passenger mile, American Airlines is the world’s largest. AAL showed a net loss of $2.65 in the first quarter, 22% worse than expected, and the losses are expected to worsen in Q2, to as much as $7.35. After absorbing the $2.24 billion net loss in Q1, AAL, like Boeing, suspended its dividend and buyback plans.
|
(See Boeing stock analysis on TipRanks) American Airlines (AAL) Measured by fleet size, scheduled passengers carried, and revenue per passenger mile, American Airlines is the world’s largest. AAL showed a net loss of $2.65 in the first quarter, 22% worse than expected, and the losses are expected to worsen in Q2, to as much as $7.35. After absorbing the $2.24 billion net loss in Q1, AAL, like Boeing, suspended its dividend and buyback plans.
|
5879.0
|
2020-05-13 00:00:00 UTC
|
Why Airline Shares Are Falling Today
|
AAL
|
https://www.nasdaq.com/articles/why-airline-shares-are-falling-today-2020-05-13
|
nan
|
nan
|
What happened
Airline shares were under pressure again on Wednesday following comments from Federal Reserve Chairman Jerome Powell forecasting a long post-COVID-19 recovery that could "leave behind lasting damage" to the economy. The airlines need a quick economic rebound to avoid financial distress, and Powell's comments provided new reason for investors to worry about the viability of airline shares.
As of 12:30 p.m. EDT, shares of Spirit Airlines (NYSE: SAVE) were down 14%, shares of United Airlines Holdings (NASDAQ: UAL) were off 9.8%, and shares of Delta Air Lines (NYSE: DAL), American Airlines Group (NASDAQ: AAL), and Southwest Airlines (NYSE: LUV) were all down more than 5% apiece.
So what
The airlines are in crisis mode, slashing flights, grounding planes, and cutting costs in hopes of weathering a pandemic-induced travel slump that has seen travel demand down 90% or more year over year. The companies have raised billions in fresh liquidity thanks to a U.S. government bailout package as well as debt and equity sales, but no amount of cash will be enough if revenue does not rebound eventually.
Image source: Getty Images.
After losing half of their value or more as the pandemic initially spread, airline stocks have stabilized somewhat, and now tend to trade along with broader market sentiment about how long the pandemic will last and what the economy will look like once it is over. Powell's comments spoke to the worst fears among airline investors, suggesting that travel demand will be slow to materialize once the stay-at-home orders are lifted.
We know it is going to take time to see airlines fully recover. I believe it could take three years or more before traffic returns to pre-pandemic levels. But airlines can likely stumble along if some weakened version of a more normal travel environment emerges in the months to come. What airlines and their investors hope to avoid is "lasting damage" to the economy.
The stocks are down today despite a well-known portfolio manager coming to the industry's defense. Bill Miller, the one-time chief investment officer of Legg Mason who now runs his own firm, told CNBC on Tuesday, "If you don't own the airlines, then you're making a bet against the vaccine." Miller's argument is that consumers love travel and people will resume flying as soon as it is safe.
Now what
Worth noting there is another side to Miller's argument: If you do not own airlines, you could just be betting that the companies will run out of money before a vaccine is available.
That's really where we are with these airline stocks today. If travel recovers before the cash runs out, the stocks are almost certainly undervalued. But if the cash runs out first, the consequences will be dire, and some equity holders will see their investments wiped out.
I am hopeful the industry can avoid bankruptcies, but until the pandemic is contained and we can actually see how the economy responds, it is impossible to say how things will play out. For now, investors who are willing to brave the unknown should stick to top operators like Delta and Southwest, and hope for the best.
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 April 16, 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 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.
|
As of 12:30 p.m. EDT, shares of Spirit Airlines (NYSE: SAVE) were down 14%, shares of United Airlines Holdings (NASDAQ: UAL) were off 9.8%, and shares of Delta Air Lines (NYSE: DAL), American Airlines Group (NASDAQ: AAL), and Southwest Airlines (NYSE: LUV) were all down more than 5% apiece. What happened Airline shares were under pressure again on Wednesday following comments from Federal Reserve Chairman Jerome Powell forecasting a long post-COVID-19 recovery that could "leave behind lasting damage" to the economy. The companies have raised billions in fresh liquidity thanks to a U.S. government bailout package as well as debt and equity sales, but no amount of cash will be enough if revenue does not rebound eventually.
|
As of 12:30 p.m. EDT, shares of Spirit Airlines (NYSE: SAVE) were down 14%, shares of United Airlines Holdings (NASDAQ: UAL) were off 9.8%, and shares of Delta Air Lines (NYSE: DAL), American Airlines Group (NASDAQ: AAL), and Southwest Airlines (NYSE: LUV) were all down more than 5% apiece. See the 10 stocks *Stock Advisor returns as of April 16, 2020 Lou Whiteman owns shares of Delta Air Lines and Spirit Airlines. The Motley Fool recommends Delta Air Lines and Southwest Airlines.
|
As of 12:30 p.m. EDT, shares of Spirit Airlines (NYSE: SAVE) were down 14%, shares of United Airlines Holdings (NASDAQ: UAL) were off 9.8%, and shares of Delta Air Lines (NYSE: DAL), American Airlines Group (NASDAQ: AAL), and Southwest Airlines (NYSE: LUV) were all down more than 5% apiece. The airlines need a quick economic rebound to avoid financial distress, and Powell's comments provided new reason for investors to worry about the viability of airline shares. See the 10 stocks *Stock Advisor returns as of April 16, 2020 Lou Whiteman owns shares of Delta Air Lines and Spirit Airlines.
|
As of 12:30 p.m. EDT, shares of Spirit Airlines (NYSE: SAVE) were down 14%, shares of United Airlines Holdings (NASDAQ: UAL) were off 9.8%, and shares of Delta Air Lines (NYSE: DAL), American Airlines Group (NASDAQ: AAL), and Southwest Airlines (NYSE: LUV) were all down more than 5% apiece. What airlines and their investors hope to avoid is "lasting damage" to the economy. See the 10 stocks *Stock Advisor returns as of April 16, 2020 Lou Whiteman owns shares of Delta Air Lines and Spirit Airlines.
|
5880.0
|
2020-05-13 00:00:00 UTC
|
3 Big Stock Charts for Wednesday: JetBlue, American Airlines, and Southwest Airlines
|
AAL
|
https://www.nasdaq.com/articles/3-big-stock-charts-for-wednesday%3A-jetblue-american-airlines-and-southwest-airlines-2020-05
|
nan
|
nan
|
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
One of the top stories of the day on Tuesday was a real shocker for the aviation industry. Reportedly Dave Calhoun, the CEO of Boeing (NYSE:BA), opined that it is “likely” that one of the major U.S. carriers will go out of business in 2020.
Source: Shutterstock
That’s a dire prediction, and it’s coming from the chief executive of a major plane-building giant. Calhoun even went so far as to name a specific month. He said, “You know, something will happen when September comes around.”
Boeing spokesman Gordon Johndroe later tried to backpedal on the CEO’s statement. He claimed that Calhoun was ” … speaking in general about the uncertainty in the sector, not about any one particular airline.”
7 Dividend Stocks That May Be in Danger
But it’s too late for backpedaling as the cat’s already out of the bag. Should traders bail on their aviation stock holdings, or even short-sell those stocks? It’s an important question, so Wednesday’s big stock charts will feature airline-sector names that might encounter serious turbulence in the near future.
JetBlue (JBLU)
Source: Provided by Finviz
With a trailing 12-month price-to-earnings ratio of 9.52, JetBlue (NASDAQ:JBLU) stock might seem attractively valued. On the other hand, sometimes low valuations occur because companies simply aren’t doing well financially. Maybe the first of our big stock charts will provide some clarity as to whether or not JBLU actually offers a strong value proposition.
That $8 level is like a magnet for JBLU stock. It’s now the third time that the price has recently visited that level. The buyers swooped in and carried the stock back up in the past, so maybe they’ll do it again this time.
After Tuesday’s red candlestick, JBLU stock is below the 20-, 50-, and 200-day moving averages. This fact is in the bears’ favor, so the buyers have some catching up to do.
The small symmetrical triangle could be considered the flag portion of a large bearish pennant. Oftentimes these configurations resolve to the downside. Therefore, it’s wise to proceed with caution when it comes to JBLU stock.
American Airlines (AAL)
Source: Provided by Finviz
Income-focused investors should appreciate the fact that American Airlines (NASDAQ:AAL) stock offers a generous forward dividend yield of nearly 4%. But then, that wouldn’t provide much consolation if the share price falls to new lows.A glance at the AAL stock chart may help us to decide whether we should anticipate a turnaround anytime soon.
It appears that AAL stock is clinging to the $9.60 level. A recent series of small, sideways-moving candlesticks suggests that volatility has calmed down somewhat.
Unfortunately for the bulls, AAL stock is trading below all three of the major moving averages on the chart. Moreover, those three moving averages are tilting downwards.
A small descending triangle pattern on the chart has been forming since March. The bears will want to see AAL stock resolve downwards below the $9.60 support/resistance level.
Southwest Airlines (LUV)
Source: Provided by Finviz
The Boeing CEO’s words echoed throughout the markets. Which one of the airlines will fold this year? Will it be Southwest Airlines (NYSE:LUV)? It’s perfectly understandable if shareholders are concerned. Let’s home in on the last of today’s big stock charts and decide for ourselves if there’s hope for a recovery as the year progresses.
We can see that the LUV stock price is moving towards the $25 level for the second time. The bulls will really need to show some conviction in preventing the share price from breaching that level.
The recent candlesticks are all below the three important moving averages on the chart. The prospect of a real turnaround will depend on the bulls pushing LUV stock back above those lines.
Consider $30 as the resistance level to watch for now. If LUV stock can break above that price, it might then be considered support instead of resistance.
As of this writing, David Moadel did not hold a position in any of the aforementioned securities.
The post 3 Big Stock Charts for Wednesday: JetBlue, American Airlines, and Southwest 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.
|
But then, that wouldn’t provide much consolation if the share price falls to new lows.A glance at the AAL stock chart may help us to decide whether we should anticipate a turnaround anytime soon. American Airlines (AAL) Source: Provided by Finviz Income-focused investors should appreciate the fact that American Airlines (NASDAQ:AAL) stock offers a generous forward dividend yield of nearly 4%. It appears that AAL stock is clinging to the $9.60 level.
|
American Airlines (AAL) Source: Provided by Finviz Income-focused investors should appreciate the fact that American Airlines (NASDAQ:AAL) stock offers a generous forward dividend yield of nearly 4%. But then, that wouldn’t provide much consolation if the share price falls to new lows.A glance at the AAL stock chart may help us to decide whether we should anticipate a turnaround anytime soon. It appears that AAL stock is clinging to the $9.60 level.
|
American Airlines (AAL) Source: Provided by Finviz Income-focused investors should appreciate the fact that American Airlines (NASDAQ:AAL) stock offers a generous forward dividend yield of nearly 4%. Unfortunately for the bulls, AAL stock is trading below all three of the major moving averages on the chart. But then, that wouldn’t provide much consolation if the share price falls to new lows.A glance at the AAL stock chart may help us to decide whether we should anticipate a turnaround anytime soon.
|
Unfortunately for the bulls, AAL stock is trading below all three of the major moving averages on the chart. The bears will want to see AAL stock resolve downwards below the $9.60 support/resistance level. American Airlines (AAL) Source: Provided by Finviz Income-focused investors should appreciate the fact that American Airlines (NASDAQ:AAL) stock offers a generous forward dividend yield of nearly 4%.
|
5881.0
|
2020-05-12 00:00:00 UTC
|
Southwest Airlines Stock Is Finally Ready for a Comeback
|
AAL
|
https://www.nasdaq.com/articles/southwest-airlines-stock-is-finally-ready-for-a-comeback-2020-05-12
|
nan
|
nan
|
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The actions of Wall Street’s biggest players deserve our consideration. But there are times when those weighty influences on a company’s share price turn into a “just plane smart” opportunity for other investors. And right now Southwest Airlines (NYSE:LUV) is landing on supportive ground for potentially good value on future trips in LUV stock.
Source: Jeramey Lende / Shutterstock.com
I’ve said it before, Warren Buffett’s longevity is no accident, nor are his famed returns as one of the market’s most revered investors. And as most other investors with even a passing interest in the stock market are aware, in early May, his investment firm Berkshire Hathaway (NYSE:BRK.A, NYSE:BRK.B) announced it dumped its entire and massive stake in airliners while warning “the world has changed” after the novel coronavirus.
The news was enough to send Southwest Airlines down 5.71% and fresh five-plus year lows in the immediate aftermath. The pressure was also on top of an already dismal drop of around 45% in shares in 2020. And in the several sessions which have followed, LUV stock is down an additional 6.50% in bumpy but pressured trading.
To state the obvious, other investors have been doing more than just listening to the Oracle of Omaha as it relates to Southwest Airlines, and for that matter, peers American Airlines (NASDAQ:AAL), Delta (NYSE:DAL) and United Airlines (NASDAQ:UAL), whose stocks were also sold by the firm.
7 Dividend Stocks That May Be in Danger
Still, Buffett isn’t infallible. A couple critical buy and sell decisions in Disney (NYSE:DIS) over the decades cost Berkshire in the neighborhood of $16 billion in total returns. Ouch! Furthermore, infamously backing away from earlier investments in big tech companies such as Apple (NASDAQ:AAPL) and Amazon (NASDAQ:AMZN) has proven more than a simple rounding error for his shareholders.
The point is and to steal a phrase made famous by the investing giant, “buying when others are fearful” is now becoming relevant to the conversation in LUV stock.
LUV Stock Monthly Price Chart
Source: Charts by TradingView
In our estimation and to steal another line, it’s “just plane smart” business. I’m referring to persistent selling in Southwest Airlines, which could lead to a solid buying opportunity. The price action has cratered shares into a key, albeit very wide technical support zone worth monitoring for a bottom to emerge.
A support area from roughly $19 – $28 holds the 62% and 76% Fibonacci retracement levels tied to the 2008 – 2009 financial crisis. The zone also contains the former all-time-high from 2000, which took 14 years to clear. It’s important business to say the least.
Alongside aggressive monthly chart price action that’s outside the monthly Bollinger Band for a third month in a row, oversold stochastics and record-breaking volume, conditions supporting a possible capitulation in shares have grown. And reasons for buying Southwest Airlines, not selling LUV stock, have similarly increased.
For investors unafraid to board the stock despite Buffett’s actions and words, I’d look to the weekly time frame for timing an entry in conjunction with a slightly out-of-the-money bull call spread. Right now, with Southwest shares forming a candlestick inside the prior week’s bullish doji / hammer, a breakout above $28.25 looks promising as a buy signal.
Alternatively, and as pattern’s have been known to fail, buying deeper within the wide support area should be watched closely. Appreciably, a second or third candlestick further penetrating this technical area could be much more attractive for actualizing stronger value off and on the price chart.
Without question, I’d still wait on a weekly chart pattern low to fully form before buying into Southwest Airlines. I’d also look to the options market for a similar, risk-reducing vertical spread that offers a well-leveraged alternative to buying LUV stock.
Disclosure: 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 Southwest Airlines Stock Is Finally Ready for a Comeback appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
To state the obvious, other investors have been doing more than just listening to the Oracle of Omaha as it relates to Southwest Airlines, and for that matter, peers American Airlines (NASDAQ:AAL), Delta (NYSE:DAL) and United Airlines (NASDAQ:UAL), whose stocks were also sold by the firm. A couple critical buy and sell decisions in Disney (NYSE:DIS) over the decades cost Berkshire in the neighborhood of $16 billion in total returns. The price action has cratered shares into a key, albeit very wide technical support zone worth monitoring for a bottom to emerge.
|
To state the obvious, other investors have been doing more than just listening to the Oracle of Omaha as it relates to Southwest Airlines, and for that matter, peers American Airlines (NASDAQ:AAL), Delta (NYSE:DAL) and United Airlines (NASDAQ:UAL), whose stocks were also sold by the firm. LUV Stock Monthly Price Chart Source: Charts by TradingView In our estimation and to steal another line, it’s “just plane smart” business. And reasons for buying Southwest Airlines, not selling LUV stock, have similarly increased.
|
To state the obvious, other investors have been doing more than just listening to the Oracle of Omaha as it relates to Southwest Airlines, and for that matter, peers American Airlines (NASDAQ:AAL), Delta (NYSE:DAL) and United Airlines (NASDAQ:UAL), whose stocks were also sold by the firm. And right now Southwest Airlines (NYSE:LUV) is landing on supportive ground for potentially good value on future trips in LUV stock. And reasons for buying Southwest Airlines, not selling LUV stock, have similarly increased.
|
To state the obvious, other investors have been doing more than just listening to the Oracle of Omaha as it relates to Southwest Airlines, and for that matter, peers American Airlines (NASDAQ:AAL), Delta (NYSE:DAL) and United Airlines (NASDAQ:UAL), whose stocks were also sold by the firm. And in the several sessions which have followed, LUV stock is down an additional 6.50% in bumpy but pressured trading. LUV Stock Monthly Price Chart Source: Charts by TradingView In our estimation and to steal another line, it’s “just plane smart” business.
|
5882.0
|
2020-05-12 00:00:00 UTC
|
BOC Aviation says lessors may have to take back planes later this year
|
AAL
|
https://www.nasdaq.com/articles/boc-aviation-says-lessors-may-have-to-take-back-planes-later-this-year-2020-05-12
|
nan
|
nan
|
By Anshuman Daga and Jamie Freed
SINGAPORE, May 12 (Reuters) - Aircraft lessors may need to start taking back some planes in the second half of the year, the CEO of BOC Aviation Ltd 2588.HK said, adding that the pandemic-hit aviation market could take until 2023 to fully rebound.
One the world's biggest aircraft lessors, BOC Aviation said it still has 100% of its fleet on lease after reaching three-month partial payment deferral deals with many customers.
"We are prepared to move planes around when we have to. We haven't got to that point yet as of today," Chief Executive Robert Martin told Reuters in an interview. "But we have to expect there will be some friction in the market, probably over the third and fourth quarter."
In times of financial strain, lessors may agree with carriers to take back some of the planes leased out, though they may also seek to forcibly reclaim them in some cases.
Global airlines are facing a battle to survive, with most flights grounded since March due to travel restrictions to contain the novel coronavirus, although some countries have begun to ease curbs.
BOC Aviation expects airline traffic could rebound fairly quickly to 80% of 2019 levels once travel restrictions are lifted, but the last 20% might take until 2023, said Martin, an industry veteran of more than 30 years.
The pandemic has spurred the Singapore-headquartered lessor into a flurry of deals this year - an estimated $5.5 billion of purchase and lease-back agreements with major carriers such as Southwest Airlines Co LUV.N and United Airlines Holdings UAL.O.
The deals were agreed on more favourable pricing terms for BOC Aviation than would have been achieved in a stronger aviation market, raising the credit quality of its client portfolio, Martin said. As of Dec. 31, the portfolio had a net book value of $16.8 billion.
Other airlines signing purchase and lease-back deals with BOC Aviation included American Airlines Group Inc AAL.O, Cathay Pacific Airways Ltd 0293.HK and European budget carrier Wizz Air Holdings PLC WIZZ.L, he said but added he did not expect more such deals this year.
BOC Aviation remains confident in the future of Boeing Co's BA.N grounded 737 MAX, noting that its deal with Southwest includes 10 of the aircraft, Martin said.
"On the 737 MAX, Boeing are telling us they will start production this month at a very low level, maybe two a month," Martin said.
A Boeing spokeswoman declined to comment on the rate but noted Chief Financial Officer Greg Smith said on anearnings calllast month that production would begin at a slow pace, rising to 31 a month in 2021.
(Reporting by Anshuman Daga and Jamie Freed; Editing by Edwina Gibbs)
((Jamie.Freed@thomsonreuters.com; +61 2 9171 7143;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Other airlines signing purchase and lease-back deals with BOC Aviation included American Airlines Group Inc AAL.O, Cathay Pacific Airways Ltd 0293.HK and European budget carrier Wizz Air Holdings PLC WIZZ.L, he said but added he did not expect more such deals this year. One the world's biggest aircraft lessors, BOC Aviation said it still has 100% of its fleet on lease after reaching three-month partial payment deferral deals with many customers. Global airlines are facing a battle to survive, with most flights grounded since March due to travel restrictions to contain the novel coronavirus, although some countries have begun to ease curbs.
|
Other airlines signing purchase and lease-back deals with BOC Aviation included American Airlines Group Inc AAL.O, Cathay Pacific Airways Ltd 0293.HK and European budget carrier Wizz Air Holdings PLC WIZZ.L, he said but added he did not expect more such deals this year. By Anshuman Daga and Jamie Freed SINGAPORE, May 12 (Reuters) - Aircraft lessors may need to start taking back some planes in the second half of the year, the CEO of BOC Aviation Ltd 2588.HK said, adding that the pandemic-hit aviation market could take until 2023 to fully rebound. BOC Aviation remains confident in the future of Boeing Co's BA.N grounded 737 MAX, noting that its deal with Southwest includes 10 of the aircraft, Martin said.
|
Other airlines signing purchase and lease-back deals with BOC Aviation included American Airlines Group Inc AAL.O, Cathay Pacific Airways Ltd 0293.HK and European budget carrier Wizz Air Holdings PLC WIZZ.L, he said but added he did not expect more such deals this year. By Anshuman Daga and Jamie Freed SINGAPORE, May 12 (Reuters) - Aircraft lessors may need to start taking back some planes in the second half of the year, the CEO of BOC Aviation Ltd 2588.HK said, adding that the pandemic-hit aviation market could take until 2023 to fully rebound. The deals were agreed on more favourable pricing terms for BOC Aviation than would have been achieved in a stronger aviation market, raising the credit quality of its client portfolio, Martin said.
|
Other airlines signing purchase and lease-back deals with BOC Aviation included American Airlines Group Inc AAL.O, Cathay Pacific Airways Ltd 0293.HK and European budget carrier Wizz Air Holdings PLC WIZZ.L, he said but added he did not expect more such deals this year. By Anshuman Daga and Jamie Freed SINGAPORE, May 12 (Reuters) - Aircraft lessors may need to start taking back some planes in the second half of the year, the CEO of BOC Aviation Ltd 2588.HK said, adding that the pandemic-hit aviation market could take until 2023 to fully rebound. BOC Aviation expects airline traffic could rebound fairly quickly to 80% of 2019 levels once travel restrictions are lifted, but the last 20% might take until 2023, said Martin, an industry veteran of more than 30 years.
|
5883.0
|
2020-05-12 00:00:00 UTC
|
EXCLUSIVE-U.S. airlines tell crews not to force passengers to wear masks
|
AAL
|
https://www.nasdaq.com/articles/exclusive-u.s.-airlines-tell-crews-not-to-force-passengers-to-wear-masks-2020-05-12-1
|
nan
|
nan
|
By Tracy Rucinski
May 12 (Reuters) - The top three U.S. airlines have told their flight attendants not to force passengers to comply with their new policy requiring face coverings, just encourage them to do so, according to employee policies reviewed by Reuters.
American Airlines Group Inc AAL.O, Delta Air Lines Inc DAL.N and United Airlines Holdings Inc UAL.O have told employees that they may deny boarding at the gate to anyone not wearing a face covering, and are providing masks to passengers who do not have them, the three carriers told Reuters.
Inside the plane, enforcement becomes more difficult.
"Once on board and off the gate, the face covering policy becomes more lenient. The flight attendant's role is informational, not enforcement, with respect to the face covering policy," American told its pilots in a message seen by Reuters explaining its policy, which went into effect on Monday.
"Bottom line to the pilots: a passenger on board your aircraft who is being compliant with the exception of wearing a face covering is NOT considered disruptive enough to trigger a Threat Level 1 response," referring to some kind of intentional disruption by a passenger that could cause the captain to divert the flight.
American spokesman Joshua Freed said: "American, like other U.S. airlines, requires customers to wear a face covering while on board, and this requirement is enforced at the gate while boarding. We also remind customers with announcements both during boarding and at departure."
A United spokeswoman also said that any non-compliance by travelers would be addressed at the gate and that flight attendants had been counseled to use their "de-escalation skills" on the aircraft and to reseat any passengers as needed.
Delta said it had a similar policy.
'ENCOURAGE THEM TO COMPLY'
All three airlines offer certain exemptions for young children or people with medical conditions or disabilities, and when people are eating or drinking.
"If the customer chooses not to comply for other reasons, please encourage them to comply, but do not escalate further," American told flight attendants in a message on Friday that it provided to Reuters.
"Likewise, if a customer is frustrated by another customer’s lack of face covering, please use situational awareness to de-escalate the situation," it said.
U.S. travel demand has fallen by about 94% in the midst of the coronavirus pandemic, prompting carriers to slash their flying schedules to roughly 30% of normal this month. With fewer planes in the skies, some are flying near capacity.
Global airlines body IATA came out last week in favor of passengers wearing masks onboard, as debate intensifies in the United States on the role that government agencies should play in mandating new safety measures for flying before a vaccine is developed.
While major U.S. airlines have individually mandated facial coverings, the Federal Aviation Administration has declined to implement the requirement, and it is not clear if the agency has the authority to compel passengers to wear face masks.
In a statement on Tuesday, the FAA said it would continue to engage in discussions about protecting the health and safety of flight crews and the traveling public and was "lending aviation expertise to federal public health agencies and airlines as they issue guidance for crew members, including health monitoring, screening protocols and aircraft cleaning."
Several airline union groups have called for a federal mandate on measures including masks, social distancing and cleaning.
"Airlines are implementing policies on the fly with essentially no coordination or direction from the federal government," said Sara Nelson, president of the Association of Flight Attendants-CWA, representing nearly 50,000 flight attendants at 19 airlines.
"We need federal requirements that mitigate risk during this pandemic and put the safety of crews and the traveling public first."
(Reporting by Tracy Rucinski; Additional reporting by David Shepardson; Editing by Peter Cooney)
((tracy.rucinski@thomsonreuters.com; 1-312-408-8575; Reuters Messaging: tracy.rucinski.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
American Airlines Group Inc AAL.O, Delta Air Lines Inc DAL.N and United Airlines Holdings Inc UAL.O have told employees that they may deny boarding at the gate to anyone not wearing a face covering, and are providing masks to passengers who do not have them, the three carriers told Reuters. A United spokeswoman also said that any non-compliance by travelers would be addressed at the gate and that flight attendants had been counseled to use their "de-escalation skills" on the aircraft and to reseat any passengers as needed. Global airlines body IATA came out last week in favor of passengers wearing masks onboard, as debate intensifies in the United States on the role that government agencies should play in mandating new safety measures for flying before a vaccine is developed.
|
American Airlines Group Inc AAL.O, Delta Air Lines Inc DAL.N and United Airlines Holdings Inc UAL.O have told employees that they may deny boarding at the gate to anyone not wearing a face covering, and are providing masks to passengers who do not have them, the three carriers told Reuters. By Tracy Rucinski May 12 (Reuters) - The top three U.S. airlines have told their flight attendants not to force passengers to comply with their new policy requiring face coverings, just encourage them to do so, according to employee policies reviewed by Reuters. American spokesman Joshua Freed said: "American, like other U.S. airlines, requires customers to wear a face covering while on board, and this requirement is enforced at the gate while boarding.
|
American Airlines Group Inc AAL.O, Delta Air Lines Inc DAL.N and United Airlines Holdings Inc UAL.O have told employees that they may deny boarding at the gate to anyone not wearing a face covering, and are providing masks to passengers who do not have them, the three carriers told Reuters. By Tracy Rucinski May 12 (Reuters) - The top three U.S. airlines have told their flight attendants not to force passengers to comply with their new policy requiring face coverings, just encourage them to do so, according to employee policies reviewed by Reuters. American spokesman Joshua Freed said: "American, like other U.S. airlines, requires customers to wear a face covering while on board, and this requirement is enforced at the gate while boarding.
|
American Airlines Group Inc AAL.O, Delta Air Lines Inc DAL.N and United Airlines Holdings Inc UAL.O have told employees that they may deny boarding at the gate to anyone not wearing a face covering, and are providing masks to passengers who do not have them, the three carriers told Reuters. By Tracy Rucinski May 12 (Reuters) - The top three U.S. airlines have told their flight attendants not to force passengers to comply with their new policy requiring face coverings, just encourage them to do so, according to employee policies reviewed by Reuters. American spokesman Joshua Freed said: "American, like other U.S. airlines, requires customers to wear a face covering while on board, and this requirement is enforced at the gate while boarding.
|
5884.0
|
2020-05-12 00:00:00 UTC
|
U.S. air travel fell 51% in March amid coronavirus pandemic
|
AAL
|
https://www.nasdaq.com/articles/u.s.-air-travel-fell-51-in-march-amid-coronavirus-pandemic-2020-05-12
|
nan
|
nan
|
WASHINGTON, May 12 (Reuters) - U.S. airlines carried 51% fewer passengers in March amid the massive coronavirus pandemic travel collapse to the lowest air travel level in nearly two decades, the U.S. Transportation Department said Tuesday.
Airlines carried slightly more total, domestic and international passengers in March 2020 than in September 2001, the month of the Sept. 11 attacks on New York and Washington. In total, airlines carried 38.7 million passengers in March, down 51% from March 2019. Prior to March, air travel had risen for 29 consecutive months year-over-year dating back to October 2017.
(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.
|
WASHINGTON, May 12 (Reuters) - U.S. airlines carried 51% fewer passengers in March amid the massive coronavirus pandemic travel collapse to the lowest air travel level in nearly two decades, the U.S. Transportation Department said Tuesday. Airlines carried slightly more total, domestic and international passengers in March 2020 than in September 2001, the month of the Sept. 11 attacks on New York and Washington. Prior to March, air travel had risen for 29 consecutive months year-over-year dating back to October 2017.
|
WASHINGTON, May 12 (Reuters) - U.S. airlines carried 51% fewer passengers in March amid the massive coronavirus pandemic travel collapse to the lowest air travel level in nearly two decades, the U.S. Transportation Department said Tuesday. In total, airlines carried 38.7 million passengers in March, down 51% from March 2019. Prior to March, air travel had risen for 29 consecutive months year-over-year dating back to October 2017.
|
WASHINGTON, May 12 (Reuters) - U.S. airlines carried 51% fewer passengers in March amid the massive coronavirus pandemic travel collapse to the lowest air travel level in nearly two decades, the U.S. Transportation Department said Tuesday. Airlines carried slightly more total, domestic and international passengers in March 2020 than in September 2001, the month of the Sept. 11 attacks on New York and Washington. (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.
|
WASHINGTON, May 12 (Reuters) - U.S. airlines carried 51% fewer passengers in March amid the massive coronavirus pandemic travel collapse to the lowest air travel level in nearly two decades, the U.S. Transportation Department said Tuesday. Airlines carried slightly more total, domestic and international passengers in March 2020 than in September 2001, the month of the Sept. 11 attacks on New York and Washington. In total, airlines carried 38.7 million passengers in March, down 51% from March 2019.
|
5885.0
|
2020-05-12 00:00:00 UTC
|
Don’t Rush to Buy Delta Air Lines Stock at Current Prices
|
AAL
|
https://www.nasdaq.com/articles/dont-rush-to-buy-delta-air-lines-stock-at-current-prices-2020-05-12
|
nan
|
nan
|
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
On Friday, United Airlines (NASDAQ:UAL) walked away from a bond deal. Unfortunately, that’s likely to bring some bad juju to peer Delta Air Lines (NYSE:DAL). DAL stock will take a hit since it seems pretty clear now that airlines can no longer borrow money.
Source: NextNewMedia / Shutterstock.com
After the market closed on May 8, United Airlines canceled its $2.25 billion bond offering. Bloomberg reported that the terms became too onerous for the company. The interest rate was going to be 11%. That was too much.
Everyone knows that kind of interest rate is unsustainable in the long term for a large company. What is going on here?
For one, United warned of “essentially zero demand” for air travel in early April. Delta and other airlines are in the same boat. The situation has improved somewhat since then, but demand is only just taking off. Most states are just beginning to lift restrictions on non-essential movement.
What Should You Do When You Can’t Borrow?
Essentially, major airlines like Delta, United and American Airlines (NASDAQ:AAL), have lost their ability to finance ongoing losses with debt. From here on, without cash flow, they are going to have to raise equity or convertible debt with elements of equity. They don’t have other options if they need cash.
7 of the Best Consumer Stocks to Buy Right Now
They could also sell assets, like their planes, or landing slots or other types of income. This may be hard to do. For example, most airlines lease their planes, with no basic equity. I suspect management may become very creative about this. They will also need these assets, in the long run, to return to robust profitability.
DAL stock seems to be in slightly better shape than the average airline. The problem is the company is still burning $100 million per day. I recently estimated that the company will spend $6.75 billion in the second quarter and will likely run out of money sometime in Q3.
What Is Next for DAL Stock?
This problem could change if air travel by regular Americans picks up dramatically. But, don’t count on that happening. Most airlines are now going to restrict their available revenue by keeping an empty chair space between passengers.
Secondly, Americans are still scared. Everyone has seen the illustrations of how a single cough spreads in a confined space.
So, here is the bottom line: Delta Air Lines is going to need more money. It will likely have to issue common stock to raise this cash.
When the market begins to realize this, DAL stock will begin to fall again. In my last article on Delta, I suggested that most investors would wait until the stock falls well below its book value per share. That price is $22.43 per share.
In fact, you should follow the “margin of safety” principle that Ben Graham wrote about in his book The Intelligent Investor, and which Warren Buffett promotes. This means wait until DAL stock is selling for two-thirds or less of its book value per share.
That would put the stock at $14.93 per share or so. In other words, don’t be in such a rush to capture some huge upside. Delta is deeply indebted and still losing money.
What’s the Fallout From Buffett’s Decision to Sell?
Warren Buffett’s decision to completely exit his company’s holdings in airline stocks hurt the industry last week.
I suspect his decision will prove right in the long run. However, he has other reasons to sell. He runs an insurance company. That kind of company cannot tolerate investment losses. The modus operandi is to sell losers and hang on to winners.
Moreover, Buffett pointed out that the airlines would have a hard time paying off the loans, even if people did return to travel. This would leave little room for shareholder profits. He did not do a detailed forecast. This was his gut feeling for the future of this industry.
Watch Out for Dilution With DAL Stock
Buffett’s gut forecast is likely to play out for Delta. I would wait until the stock trades well below its book value before buying if I was considering an investment.
Just be careful about one thing. If Delta has to issue more equity, that will dilute existing shareholders and the stock may begin to sell below its book value.
Be careful to recalculate a revised book value per share, taking into account the larger number of shares outstanding. This lowers the book value per share and lowers the level of a margin of safety.
As of this writing, Mark Hake, CFA does not hold a position in any of the aforementioned securities. Mark Hake runs the Total Yield Value Guide which you can review here.
The post Don’t Rush to Buy Delta Air Lines Stock at Current Prices 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.
|
Essentially, major airlines like Delta, United and American Airlines (NASDAQ:AAL), have lost their ability to finance ongoing losses with debt. In fact, you should follow the “margin of safety” principle that Ben Graham wrote about in his book The Intelligent Investor, and which Warren Buffett promotes. Warren Buffett’s decision to completely exit his company’s holdings in airline stocks hurt the industry last week.
|
Essentially, major airlines like Delta, United and American Airlines (NASDAQ:AAL), have lost their ability to finance ongoing losses with debt. InvestorPlace - Stock Market News, Stock Advice & Trading Tips On Friday, United Airlines (NASDAQ:UAL) walked away from a bond deal. The post Don’t Rush to Buy Delta Air Lines Stock at Current Prices appeared first on InvestorPlace.
|
Essentially, major airlines like Delta, United and American Airlines (NASDAQ:AAL), have lost their ability to finance ongoing losses with debt. InvestorPlace - Stock Market News, Stock Advice & Trading Tips On Friday, United Airlines (NASDAQ:UAL) walked away from a bond deal. Warren Buffett’s decision to completely exit his company’s holdings in airline stocks hurt the industry last week.
|
Essentially, major airlines like Delta, United and American Airlines (NASDAQ:AAL), have lost their ability to finance ongoing losses with debt. He runs an insurance company. If Delta has to issue more equity, that will dilute existing shareholders and the stock may begin to sell below its book value.
|
5886.0
|
2020-05-12 00:00:00 UTC
|
U.S. air travel fell 51% in March amid coronavirus pandemic
|
AAL
|
https://www.nasdaq.com/articles/u.s.-air-travel-fell-51-in-march-amid-coronavirus-pandemic-2020-05-12-0
|
nan
|
nan
|
By David Shepardson
WASHINGTON, May 12 (Reuters) - U.S. airlines carried 51% fewer passengers in March amid the massive coronavirus pandemic travel collapse to the lowest air travel level in nearly two decades, the U.S. Transportation Department said Tuesday.
Airlines carried slightly more total, domestic and international passengers in March 2020 than in September 2001, the month of the Sept. 11 attacks on New York and Washington. In total, airlines carried 38.7 million passengers in March, down 51% from March 2019. Prior to March, air travel had risen for 29 consecutive months year-over-year dating back to October 2017.
Since then, U.S. air travel has fallen further, down about 94%, while total flights are down by about 70%.
In April, the U.S. Treasury approved $25 billion in cash grants to airlines in exchange for a ban on paying dividends, stock buybacks, limits on executive compensation and a bar on laying off employees through Sept. 30.
In March, domestic travel fell to 34.1 million passengers, from March 2019 when airlines carried 69.6 million passengers International travel fell from 9.9 million in March 2019 to 4.6 million passengers in March as the administration imposed restrictions on travelers from China and Europe.
Last week, Airlines for America, a trade group representing the largest U.S. airlines including Delta Air Lines DAL.N, American Airlines AAL.O, Southwest Airlines LUV.N and United Airlines UAL.O, said U.S. airlines are collectively burning more than $10 billion in cash per month and averaging fewer than two dozen passengers per domestic flight.
Even after grounding more than 3,000 aircraft, or nearly 50% of the active U.S. fleet, the group said its member carriers, which include the four largest U.S. airlines, are averaging just 17 passengers per domestic flight and 29 passengers per international flight.
Net booked passengers have fallen by nearly 100% year-on-year, the group said.
U.S. airlines have canceled hundreds of thousands of flights, including 80% or more of scheduled flights into June. They are conducting additional cleaning measures and requiring all passengers to wear facial coverings to try to restore consumer confidence in air travel.
(Reporting by David Shepardson, Editing by Franklin Paul 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.
|
Last week, Airlines for America, a trade group representing the largest U.S. airlines including Delta Air Lines DAL.N, American Airlines AAL.O, Southwest Airlines LUV.N and United Airlines UAL.O, said U.S. airlines are collectively burning more than $10 billion in cash per month and averaging fewer than two dozen passengers per domestic flight. Airlines carried slightly more total, domestic and international passengers in March 2020 than in September 2001, the month of the Sept. 11 attacks on New York and Washington. In April, the U.S. Treasury approved $25 billion in cash grants to airlines in exchange for a ban on paying dividends, stock buybacks, limits on executive compensation and a bar on laying off employees through Sept. 30.
|
Last week, Airlines for America, a trade group representing the largest U.S. airlines including Delta Air Lines DAL.N, American Airlines AAL.O, Southwest Airlines LUV.N and United Airlines UAL.O, said U.S. airlines are collectively burning more than $10 billion in cash per month and averaging fewer than two dozen passengers per domestic flight. By David Shepardson WASHINGTON, May 12 (Reuters) - U.S. airlines carried 51% fewer passengers in March amid the massive coronavirus pandemic travel collapse to the lowest air travel level in nearly two decades, the U.S. Transportation Department said Tuesday. In March, domestic travel fell to 34.1 million passengers, from March 2019 when airlines carried 69.6 million passengers International travel fell from 9.9 million in March 2019 to 4.6 million passengers in March as the administration imposed restrictions on travelers from China and Europe.
|
Last week, Airlines for America, a trade group representing the largest U.S. airlines including Delta Air Lines DAL.N, American Airlines AAL.O, Southwest Airlines LUV.N and United Airlines UAL.O, said U.S. airlines are collectively burning more than $10 billion in cash per month and averaging fewer than two dozen passengers per domestic flight. By David Shepardson WASHINGTON, May 12 (Reuters) - U.S. airlines carried 51% fewer passengers in March amid the massive coronavirus pandemic travel collapse to the lowest air travel level in nearly two decades, the U.S. Transportation Department said Tuesday. In March, domestic travel fell to 34.1 million passengers, from March 2019 when airlines carried 69.6 million passengers International travel fell from 9.9 million in March 2019 to 4.6 million passengers in March as the administration imposed restrictions on travelers from China and Europe.
|
Last week, Airlines for America, a trade group representing the largest U.S. airlines including Delta Air Lines DAL.N, American Airlines AAL.O, Southwest Airlines LUV.N and United Airlines UAL.O, said U.S. airlines are collectively burning more than $10 billion in cash per month and averaging fewer than two dozen passengers per domestic flight. Prior to March, air travel had risen for 29 consecutive months year-over-year dating back to October 2017. Since then, U.S. air travel has fallen further, down about 94%, while total flights are down by about 70%.
|
5887.0
|
2020-05-12 00:00:00 UTC
|
EXCLUSIVE-U.S. airlines tell crews not to force passengers to wear masks
|
AAL
|
https://www.nasdaq.com/articles/exclusive-u.s.-airlines-tell-crews-not-to-force-passengers-to-wear-masks-2020-05-12
|
nan
|
nan
|
By Tracy Rucinski
May 12 (Reuters) - The top three U.S. airlines have told their flight attendants not to force passengers to comply with a new policy requiring face coverings, just encourage them to do so, according to employee policies reviewed by Reuters.
American Airlines Holdings Inc AAL.O, Delta Air Lines Inc DAL.N and United Airlines Holdings Inc UAL.O have told employees that they may deny boarding at the gate to anyone not wearing a face covering, and are providing masks to passengers who do not have them, the three carriers told Reuters.
Inside the plane, enforcement becomes more difficult.
"Once on board and off the gate, the face covering policy becomes more lenient. The flight attendant's role is informational, not enforcement, with respect to the face covering policy," American told its pilots in a message seen by Reuters explaining its policy, which went into effect on Monday.
"Bottom line to the pilots: a passenger on board your aircraft who is being compliant with the exception of wearing a face covering is NOT considered disruptive enough to trigger a Threat Level 1 response," referring to some kind of intentional disruption by a passenger that could cause the captain to divert the flight.
(Reporting by Tracy Rucinski; Editing by Peter Cooney)
((tracy.rucinski@thomsonreuters.com; 1-312-408-8575; Reuters Messaging: tracy.rucinski.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
American Airlines Holdings Inc AAL.O, Delta Air Lines Inc DAL.N and United Airlines Holdings Inc UAL.O have told employees that they may deny boarding at the gate to anyone not wearing a face covering, and are providing masks to passengers who do not have them, the three carriers told Reuters. By Tracy Rucinski May 12 (Reuters) - The top three U.S. airlines have told their flight attendants not to force passengers to comply with a new policy requiring face coverings, just encourage them to do so, according to employee policies reviewed by Reuters. "Bottom line to the pilots: a passenger on board your aircraft who is being compliant with the exception of wearing a face covering is NOT considered disruptive enough to trigger a Threat Level 1 response," referring to some kind of intentional disruption by a passenger that could cause the captain to divert the flight.
|
American Airlines Holdings Inc AAL.O, Delta Air Lines Inc DAL.N and United Airlines Holdings Inc UAL.O have told employees that they may deny boarding at the gate to anyone not wearing a face covering, and are providing masks to passengers who do not have them, the three carriers told Reuters. By Tracy Rucinski May 12 (Reuters) - The top three U.S. airlines have told their flight attendants not to force passengers to comply with a new policy requiring face coverings, just encourage them to do so, according to employee policies reviewed by Reuters. The flight attendant's role is informational, not enforcement, with respect to the face covering policy," American told its pilots in a message seen by Reuters explaining its policy, which went into effect on Monday.
|
American Airlines Holdings Inc AAL.O, Delta Air Lines Inc DAL.N and United Airlines Holdings Inc UAL.O have told employees that they may deny boarding at the gate to anyone not wearing a face covering, and are providing masks to passengers who do not have them, the three carriers told Reuters. By Tracy Rucinski May 12 (Reuters) - The top three U.S. airlines have told their flight attendants not to force passengers to comply with a new policy requiring face coverings, just encourage them to do so, according to employee policies reviewed by Reuters. The flight attendant's role is informational, not enforcement, with respect to the face covering policy," American told its pilots in a message seen by Reuters explaining its policy, which went into effect on Monday.
|
American Airlines Holdings Inc AAL.O, Delta Air Lines Inc DAL.N and United Airlines Holdings Inc UAL.O have told employees that they may deny boarding at the gate to anyone not wearing a face covering, and are providing masks to passengers who do not have them, the three carriers told Reuters. By Tracy Rucinski May 12 (Reuters) - The top three U.S. airlines have told their flight attendants not to force passengers to comply with a new policy requiring face coverings, just encourage them to do so, according to employee policies reviewed by Reuters. Inside the plane, enforcement becomes more difficult.
|
5888.0
|
2020-05-12 00:00:00 UTC
|
EXCLUSIVE-U.S. airlines tell crews not to force passengers to wear masks
|
AAL
|
https://www.nasdaq.com/articles/exclusive-u.s.-airlines-tell-crews-not-to-force-passengers-to-wear-masks-2020-05-12-0
|
nan
|
nan
|
By Tracy Rucinski
May 12 (Reuters) - The top three U.S. airlines have told their flight attendants not to force passengers to comply with their new policy requiring face coverings, just encourage them to do so, according to employee policies reviewed by Reuters.
American Airlines Group Inc AAL.O, Delta Air Lines Inc DAL.N and United Airlines Holdings Inc UAL.O have told employees that they may deny boarding at the gate to anyone not wearing a face covering, and are providing masks to passengers who do not have them, the three carriers told Reuters.
Inside the plane, enforcement becomes more difficult.
"Once on board and off the gate, the face covering policy becomes more lenient. The flight attendant's role is informational, not enforcement, with respect to the face covering policy," American told its pilots in a message seen by Reuters explaining its policy, which went into effect on Monday.
"Bottom line to the pilots: a passenger on board your aircraft who is being compliant with the exception of wearing a face covering is NOT considered disruptive enough to trigger a Threat Level 1 response," referring to some kind of intentional disruption by a passenger that could cause the captain to divert the flight.
American spokesman Joshua Freed said: "American, like other U.S. airlines, requires customers to wear a face covering while on board, and this requirement is enforced at the gate while boarding. We also remind customers with announcements both during boarding and at departure."
A United spokeswoman also said that any non-compliance by travelers would be addressed at the gate and that flight attendants had been counseled to use their "de-escalation skills" on the aircraft and to reseat any passengers as needed.
Delta said it had a similar policy.
'ENCOURAGE THEM TO COMPLY'
All three airlines offer certain exemptions for young children or people with medical conditions or disabilities, and when people are eating or drinking.
"If the customer chooses not to comply for other reasons, please encourage them to comply, but do not escalate further," American told flight attendants in a message on Friday that it provided to Reuters.
"Likewise, if a customer is frustrated by another customer’s lack of face covering, please use situational awareness to de-escalate the situation," it said.
U.S. travel demand has fallen by about 94% in the midst of the coronavirus pandemic, prompting carriers to slash their flying schedules to roughly 30% of normal this month. With fewer planes in the skies, some are flying near capacity.
Global airlines body IATA came out last week in favor of passengers wearing masks onboard, as debate intensifies in the United States on the role that government agencies should play in mandating new safety measures for flying before a vaccine is developed.
Several airline union groups have called for a federal mandate on measures including masks, social distancing and cleaning.
"Airlines are implementing policies on the fly with essentially no coordination or direction from the federal government," said Sara Nelson, president of the Association of Flight Attendants-CWA, representing nearly 50,000 flight attendants at 19 airlines.
"We need federal requirements that mitigate risk during this pandemic and put the safety of crews and the traveling public first."
(Reporting by Tracy Rucinski; Editing by Peter Cooney)
((tracy.rucinski@thomsonreuters.com; 1-312-408-8575; Reuters Messaging: tracy.rucinski.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
American Airlines Group Inc AAL.O, Delta Air Lines Inc DAL.N and United Airlines Holdings Inc UAL.O have told employees that they may deny boarding at the gate to anyone not wearing a face covering, and are providing masks to passengers who do not have them, the three carriers told Reuters. A United spokeswoman also said that any non-compliance by travelers would be addressed at the gate and that flight attendants had been counseled to use their "de-escalation skills" on the aircraft and to reseat any passengers as needed. U.S. travel demand has fallen by about 94% in the midst of the coronavirus pandemic, prompting carriers to slash their flying schedules to roughly 30% of normal this month.
|
American Airlines Group Inc AAL.O, Delta Air Lines Inc DAL.N and United Airlines Holdings Inc UAL.O have told employees that they may deny boarding at the gate to anyone not wearing a face covering, and are providing masks to passengers who do not have them, the three carriers told Reuters. By Tracy Rucinski May 12 (Reuters) - The top three U.S. airlines have told their flight attendants not to force passengers to comply with their new policy requiring face coverings, just encourage them to do so, according to employee policies reviewed by Reuters. American spokesman Joshua Freed said: "American, like other U.S. airlines, requires customers to wear a face covering while on board, and this requirement is enforced at the gate while boarding.
|
American Airlines Group Inc AAL.O, Delta Air Lines Inc DAL.N and United Airlines Holdings Inc UAL.O have told employees that they may deny boarding at the gate to anyone not wearing a face covering, and are providing masks to passengers who do not have them, the three carriers told Reuters. By Tracy Rucinski May 12 (Reuters) - The top three U.S. airlines have told their flight attendants not to force passengers to comply with their new policy requiring face coverings, just encourage them to do so, according to employee policies reviewed by Reuters. American spokesman Joshua Freed said: "American, like other U.S. airlines, requires customers to wear a face covering while on board, and this requirement is enforced at the gate while boarding.
|
American Airlines Group Inc AAL.O, Delta Air Lines Inc DAL.N and United Airlines Holdings Inc UAL.O have told employees that they may deny boarding at the gate to anyone not wearing a face covering, and are providing masks to passengers who do not have them, the three carriers told Reuters. By Tracy Rucinski May 12 (Reuters) - The top three U.S. airlines have told their flight attendants not to force passengers to comply with their new policy requiring face coverings, just encourage them to do so, according to employee policies reviewed by Reuters. American spokesman Joshua Freed said: "American, like other U.S. airlines, requires customers to wear a face covering while on board, and this requirement is enforced at the gate while boarding.
|
5889.0
|
2020-05-12 00:00:00 UTC
|
BOC Aviation says lessors might have to take back planes later this year
|
AAL
|
https://www.nasdaq.com/articles/boc-aviation-says-lessors-might-have-to-take-back-planes-later-this-year-2020-05-12
|
nan
|
nan
|
By Anshuman Daga and Jamie Freed
SINGAPORE, May 12 (Reuters) - Aircraft lessors may need to start taking back some planes in the second half of the year, the CEO of BOC Aviation Ltd 2588.HK said, adding that the pandemic-hit aviation market could take until 2023 to fully rebound.
One the world's biggest aircraft lessors, BOC Aviation said it still has 100% of its fleet on lease after reaching three-month partial payment deferral deals with many customers.
"We are prepared to move planes around when we have to. We haven't got to that point yet as of today," Chief Executive Robert Martin told Reuters in an interview. "But we have to expect there will be some friction in the market, probably over the third and fourth quarter."
In times of financial strain, lessors may agree with carriers to take back some of the planes leased out, though they may also seek to forcibly reclaim them in some cases.
Global airlines are facing a battle to survive, with most flights grounded since March due to travel restrictions to contain the novel coronavirus, although some countries have begun to ease curbs.
BOC Aviation expects airline traffic could rebound fairly quickly to 80% of 2019 levels once travel restrictions are lifted, but the last 20% might take until 2023, said Martin, an industry veteran of more than 30 years.
The pandemic has spurred the Singapore-headquartered lessor into a flurry of deals this year - an estimated $5.5 billion of purchase and lease-back agreements with major carriers including Southwest Airlines Co LUV.N and United Airlines Holdings UAL.O.
BOC Aviation remains confident in the future of Boeing Co's BA.N grounded 737 MAX, noting that its deal with Southwest includes 10 of the aircraft, Martin said.
"On the 737 MAX, Boeing are telling us they will start production this month at a very low level, maybe two a month," Martin said.
A Boeing spokeswoman declined to comment on the rate but noted that Chief Financial Officer Greg Smith said on anearnings calllast month that production would begin at a slow pace, rising to 31 a month in 2021.
(Reporting by Anshuman Daga and Jamie Freed; Editing by Edwina Gibbs)
((Jamie.Freed@thomsonreuters.com; +61 2 9171 7143;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
One the world's biggest aircraft lessors, BOC Aviation said it still has 100% of its fleet on lease after reaching three-month partial payment deferral deals with many customers. Global airlines are facing a battle to survive, with most flights grounded since March due to travel restrictions to contain the novel coronavirus, although some countries have begun to ease curbs. BOC Aviation expects airline traffic could rebound fairly quickly to 80% of 2019 levels once travel restrictions are lifted, but the last 20% might take until 2023, said Martin, an industry veteran of more than 30 years.
|
By Anshuman Daga and Jamie Freed SINGAPORE, May 12 (Reuters) - Aircraft lessors may need to start taking back some planes in the second half of the year, the CEO of BOC Aviation Ltd 2588.HK said, adding that the pandemic-hit aviation market could take until 2023 to fully rebound. One the world's biggest aircraft lessors, BOC Aviation said it still has 100% of its fleet on lease after reaching three-month partial payment deferral deals with many customers. BOC Aviation remains confident in the future of Boeing Co's BA.N grounded 737 MAX, noting that its deal with Southwest includes 10 of the aircraft, Martin said.
|
By Anshuman Daga and Jamie Freed SINGAPORE, May 12 (Reuters) - Aircraft lessors may need to start taking back some planes in the second half of the year, the CEO of BOC Aviation Ltd 2588.HK said, adding that the pandemic-hit aviation market could take until 2023 to fully rebound. BOC Aviation expects airline traffic could rebound fairly quickly to 80% of 2019 levels once travel restrictions are lifted, but the last 20% might take until 2023, said Martin, an industry veteran of more than 30 years. BOC Aviation remains confident in the future of Boeing Co's BA.N grounded 737 MAX, noting that its deal with Southwest includes 10 of the aircraft, Martin said.
|
By Anshuman Daga and Jamie Freed SINGAPORE, May 12 (Reuters) - Aircraft lessors may need to start taking back some planes in the second half of the year, the CEO of BOC Aviation Ltd 2588.HK said, adding that the pandemic-hit aviation market could take until 2023 to fully rebound. BOC Aviation expects airline traffic could rebound fairly quickly to 80% of 2019 levels once travel restrictions are lifted, but the last 20% might take until 2023, said Martin, an industry veteran of more than 30 years. BOC Aviation remains confident in the future of Boeing Co's BA.N grounded 737 MAX, noting that its deal with Southwest includes 10 of the aircraft, Martin said.
|
5890.0
|
2020-05-11 00:00:00 UTC
|
The AAL Paradox: Analysts Bearish But Forecast 19.33% Gains
|
AAL
|
https://www.nasdaq.com/articles/the-aal-paradox%3A-analysts-bearish-but-forecast-19.33-gains-2020-05-11
|
nan
|
nan
|
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 10 analysts — reveals an average price target of $12.10/share. That's a whopping 19.33% above where AAL has been trading recently at $10.14/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: 2 2 5 7
Buy ratings: 0 0 1 1
Hold ratings: 4 4 1 3
Sell ratings: 1 1 1 0
Strong sell ratings: 5 4 2 2
Average rating: 3.58 3.45 2.4 2.15
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 3.58 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 $20.00. The standard deviation is $6.063.
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 $12.10/share, the 19.33% 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.
10 ETFs With Most Upside To Analyst Targets »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
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 10 analysts — reveals an average price target of $12.10/share.
|
The average 12-month price target for AAL — averaging the work of 10 analysts — reveals an average price target of $12.10/share. The average rating of 3.58 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).
|
The average 12-month price target for AAL — averaging the work of 10 analysts — reveals an average price target of $12.10/share. And so with AAL trading so far below that average target price of $12.10/share, the 19.33% 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).
|
The average rating of 3.58 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 $12.10/share, the 19.33% 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.
|
5891.0
|
2020-05-11 00:00:00 UTC
|
VOO's Underlying Holdings Imply 11% Gain Potential
|
AAL
|
https://www.nasdaq.com/articles/voos-underlying-holdings-imply-11-gain-potential-2020-05-11
|
nan
|
nan
|
Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. For the Vanguard S&P 500 ETF (Symbol: VOO), we found that the implied analyst target price for the ETF based upon its underlying holdings is $299.31 per unit.
With VOO trading at a recent price near $268.78 per unit, that means that analysts see 11.36% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of VOO's underlying holdings with notable upside to their analyst target prices are McKesson Corp (Symbol: MCK), Sealed Air Corp (Symbol: SEE), and American Airlines Group Inc (Symbol: AAL). Although MCK has traded at a recent price of $135.97/share, the average analyst target is 22.60% higher at $166.70/share. Similarly, SEE has 21.08% upside from the recent share price of $29.64 if the average analyst target price of $35.89/share is reached, and analysts on average are expecting AAL to reach a target price of $12.10/share, which is 19.33% above the recent price of $10.14. Below is a twelve month price history chart comparing the stock performance of MCK, SEE, and AAL:
Below is a summary table of the current analyst target prices discussed above:
NAME SYMBOL RECENT PRICE AVG. ANALYST 12-MO. TARGET % UPSIDE TO TARGET
Vanguard S&P 500 ETF VOO $268.78 $299.31 11.36%
McKesson Corp MCK $135.97 $166.70 22.60%
Sealed Air Corp SEE $29.64 $35.89 21.08%
American Airlines Group Inc AAL $10.14 $12.10 19.33%
Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Do the analysts have a valid justification for their targets, or are they behind the curve on recent company and industry developments? A high price target relative to a stock's trading price can reflect optimism about the future, but can also be a precursor to target price downgrades if the targets were a relic of the past. These are questions that require further investor research.
10 ETFs With Most Upside To Analyst Targets »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Vanguard S&P 500 ETF VOO $268.78 $299.31 11.36% McKesson Corp MCK $135.97 $166.70 22.60% Sealed Air Corp SEE $29.64 $35.89 21.08% American Airlines Group Inc AAL $10.14 $12.10 19.33% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of VOO's underlying holdings with notable upside to their analyst target prices are McKesson Corp (Symbol: MCK), Sealed Air Corp (Symbol: SEE), and American Airlines Group Inc (Symbol: AAL). Similarly, SEE has 21.08% upside from the recent share price of $29.64 if the average analyst target price of $35.89/share is reached, and analysts on average are expecting AAL to reach a target price of $12.10/share, which is 19.33% above the recent price of $10.14.
|
Three of VOO's underlying holdings with notable upside to their analyst target prices are McKesson Corp (Symbol: MCK), Sealed Air Corp (Symbol: SEE), and American Airlines Group Inc (Symbol: AAL). Similarly, SEE has 21.08% upside from the recent share price of $29.64 if the average analyst target price of $35.89/share is reached, and analysts on average are expecting AAL to reach a target price of $12.10/share, which is 19.33% above the recent price of $10.14. Vanguard S&P 500 ETF VOO $268.78 $299.31 11.36% McKesson Corp MCK $135.97 $166.70 22.60% Sealed Air Corp SEE $29.64 $35.89 21.08% American Airlines Group Inc AAL $10.14 $12.10 19.33% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now?
|
Similarly, SEE has 21.08% upside from the recent share price of $29.64 if the average analyst target price of $35.89/share is reached, and analysts on average are expecting AAL to reach a target price of $12.10/share, which is 19.33% above the recent price of $10.14. Three of VOO's underlying holdings with notable upside to their analyst target prices are McKesson Corp (Symbol: MCK), Sealed Air Corp (Symbol: SEE), and American Airlines Group Inc (Symbol: AAL). Below is a twelve month price history chart comparing the stock performance of MCK, SEE, and AAL: Below is a summary table of the current analyst target prices discussed above:
|
Vanguard S&P 500 ETF VOO $268.78 $299.31 11.36% McKesson Corp MCK $135.97 $166.70 22.60% Sealed Air Corp SEE $29.64 $35.89 21.08% American Airlines Group Inc AAL $10.14 $12.10 19.33% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of VOO's underlying holdings with notable upside to their analyst target prices are McKesson Corp (Symbol: MCK), Sealed Air Corp (Symbol: SEE), and American Airlines Group Inc (Symbol: AAL). Similarly, SEE has 21.08% upside from the recent share price of $29.64 if the average analyst target price of $35.89/share is reached, and analysts on average are expecting AAL to reach a target price of $12.10/share, which is 19.33% above the recent price of $10.14.
|
5892.0
|
2020-05-11 00:00:00 UTC
|
BUZZ-U.S. STOCKS ON THE MOVE-Cellect Biotechnology, Under Armour, AMC Entertainment
|
AAL
|
https://www.nasdaq.com/articles/buzz-u.s.-stocks-on-the-move-cellect-biotechnology-under-armour-amc-entertainment-2020-05
|
nan
|
nan
|
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 Jones indexes retreated on Monday after last week's rally, as investors worried about a second wave of coronavirus infections with the reopening of several economies. .N
At 11:04 ET, the Dow Jones Industrial Average .DJI was down 0.83% at 24,128.71. The S&P 500 .SPX was down 0.43% at 2,917.06 and the Nasdaq Composite .IXIC was up 0.13% at 9,133.09. The top three S&P 500 .PG.INX percentage gainers: ** Cardinal Health Inc , up 5.2% ** MarketAxess Holdings Inc , up 4.6% ** Vertex Pharmaceuticals Inc , up 3.5% The top three S&P 500 .PL.INX percentage losers: ** Under Armour Inc , down 11.3% ** Mosaic Company MOS.N, down 9.2% ** Alliance Data Systems Corp , down 7.95% The top three NYSE .PG.N percentage gainers: ** Core Molding Technologies Inc , up 31.6% ** AMC Entertainment Holdings Inc , up 27.3% ** Avaya Holdings Corp , up 26.9% The top three NYSE .PL.N percentage losers: ** Scorpio Bulkers Inc , down 17.3% ** SunCoke Energy Inc , down 16.5% ** ArcelorMittal S.A. , down 15.5% The top three Nasdaq .PG.O percentage gainers: ** Cellect Biotechnology Ltd , up 97% ** Myokardia Inc , up 63.1% ** Mediaco Holding Inc , up 41.3% The top three Nasdaq .PL.O percentage losers: ** Recro Pharma Inc , down 40.1% ** AMAG Pharmaceuticals Inc , down 14.7% ** Select Interior Concepts Inc , down 11.9% ** Conatus Pharmaceuticals Inc CNAT.O: up 4.7%
BUZZ-Conatus: Up as FDA approves Histogen application to study hair loss therapy ** Carvana Co CVNA.N: down 2.1%
BUZZ-Carvana dips as online used car seller Vroom eyes June IPO [BUZZ-Carvana dips as online used car seller Vroom eyes June IPO] ** Assertio Therapeutics Inc ASRT.O: up 12%
BUZZ-Assertio Therapeutics surges on surprise Q1 profit ** Gogo Inc GOGO.O: up 10.7%
BUZZ-Gogo Inc: Rises as Q1 revenue beats estimates ** MyoKardia Inc MYOK.O: up 63.1%
BUZZ-Myokardia Inc: Surges after heart drug meets main goal in late-stage study ** Quotient Ltd QTNT.O: up 4.9%
BUZZ-Quotient Ltd: Rises on COVID-19 antibody test deal in UK ** Recro Pharma Inc REPH.O: down 40.1%
BUZZ-Recro Pharma: Slumps on wider-than-expected loss, lowered revenue outlook ** Pioneer Natural Resources Co PXD.N: down 4.9%
BUZZ-Pioneer Natural Resources drops ahead of $1 bln convertible debt deal ** Delta Air Lines Inc DAL.N: down 3.8% ** American Airlines Groups Inc AAL.O: down 3.4% ** Southwest Airlines Co LUV.N: down 3.6% ** United Airlines Holdings Inc UAL.O: down 6.9% ** Spirit Airlines Inc SAVE.N: down 2.9% ** JetBlue Airways Corp JBLU.O: down 5.1% BUZZ-U.S. airlines: Fall on concerns of fresh coronavirus cases ** Cardinal Health Inc CAH.N: up 5.2% BUZZ-Cardinal Health Inc: Rises on Q3 EPS, revenue beat ** Marriott International Inc MAR.O: down 6% BUZZ-Marriott: Falls as profit misses lowered expectations ** Vuzix Corp VUZI.O: down 11.7% BUZZ-Vuzix Corp: Tumbles on dismal quarterly results ** Top Ships Inc TOPS.O: up 7.7% BUZZ-Top Ships: Rises after purchase of three medium-range tankers ** Moderna Inc MRNA.O: up 7.4% BUZZ-Moderna's COVID-19 vaccine timeline is 'ambitious' - GlobalData ** Tesla Inc TSLA.O: down 1.1% BUZZ-Tesla slips as China sales of Model 3 vehicles slump 64% ** Cellect Biotechnology Ltd APOP.O: up 97.0% BUZZ-Cellect: Soars on positive bone marrow transplant study data ** Quidel Corp QDEL.O: up 23% BUZZ-Quidel: Jumps as U.S. approves emergency use of first antigen COVID-19 test ** Goldman Sachs Group Inc GS.N: down 1.3% ** JPMorgan Chase & Co JPM.N: down 3% ** Citigroup Inc C.N: down 4.4% ** Wells Fargo & Co WFC.N: down 3% ** Bank of America Corp BAC.N: down 3.9%
** Morgan Stanley MS.N: down 1.2% BUZZ-U.S. big banks: Fall in line with broader market ** Amneal Pharmaceuticals Inc AMRX.N: up 20.8% BUZZ-Amneal Pharma rises after quarterly profit, revenue beat estimates ** Under Armour Inc UAA.N: down 11.3% BUZZ-Under Armour down on weak quarter due to virus-led lockdowns ** AMC Entertainment Holdings Inc AMC.N: up 27.3% ** Amazon.com Inc AMZN.O: up 1% BUZZ-AMC: Jumps on report of takeover talks with Amazon
The 11 major S&P 500 sectors:
Communication Services
.SPLRCL
down 0.32%
Consumer Discretionary
.SPLRCD
down 0.36%
Consumer Staples
.SPLRCS
down 0.31%
Energy
.SPNY
down 1.89%
Financial
.SPSY
down 2.04%
Health
.SPXHC
up 0.78%
Industrial
.SPLRCI
down 1.64%
Information Technology
.SPLRCT
up 0.12%
Materials
.SPLRCM
down 2.40%
Real Estate
.SPLRCR
down 0.69%
Utilities
.SPLRCU
down 1.89%
(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.
|
The top three S&P 500 .PG.INX percentage gainers: ** Cardinal Health Inc , up 5.2% ** MarketAxess Holdings Inc , up 4.6% ** Vertex Pharmaceuticals Inc , up 3.5% The top three S&P 500 .PL.INX percentage losers: ** Under Armour Inc , down 11.3% ** Mosaic Company MOS.N, down 9.2% ** Alliance Data Systems Corp , down 7.95% The top three NYSE .PG.N percentage gainers: ** Core Molding Technologies Inc , up 31.6% ** AMC Entertainment Holdings Inc , up 27.3% ** Avaya Holdings Corp , up 26.9% The top three NYSE .PL.N percentage losers: ** Scorpio Bulkers Inc , down 17.3% ** SunCoke Energy Inc , down 16.5% ** ArcelorMittal S.A. , down 15.5% The top three Nasdaq .PG.O percentage gainers: ** Cellect Biotechnology Ltd , up 97% ** Myokardia Inc , up 63.1% ** Mediaco Holding Inc , up 41.3% The top three Nasdaq .PL.O percentage losers: ** Recro Pharma Inc , down 40.1% ** AMAG Pharmaceuticals Inc , down 14.7% ** Select Interior Concepts Inc , down 11.9% ** Conatus Pharmaceuticals Inc CNAT.O: up 4.7% BUZZ-Conatus: Up as FDA approves Histogen application to study hair loss therapy ** Carvana Co CVNA.N: down 2.1% BUZZ-Carvana dips as online used car seller Vroom eyes June IPO [BUZZ-Carvana dips as online used car seller Vroom eyes June IPO] ** Assertio Therapeutics Inc ASRT.O: up 12% BUZZ-Assertio Therapeutics surges on surprise Q1 profit ** Gogo Inc GOGO.O: up 10.7% BUZZ-Gogo Inc: Rises as Q1 revenue beats estimates ** MyoKardia Inc MYOK.O: up 63.1% BUZZ-Myokardia Inc: Surges after heart drug meets main goal in late-stage study ** Quotient Ltd QTNT.O: up 4.9% BUZZ-Quotient Ltd: Rises on COVID-19 antibody test deal in UK ** Recro Pharma Inc REPH.O: down 40.1% BUZZ-Recro Pharma: Slumps on wider-than-expected loss, lowered revenue outlook ** Pioneer Natural Resources Co PXD.N: down 4.9% BUZZ-Pioneer Natural Resources drops ahead of $1 bln convertible debt deal ** Delta Air Lines Inc DAL.N: down 3.8% ** American Airlines Groups Inc AAL.O: down 3.4% ** Southwest Airlines Co LUV.N: down 3.6% ** United Airlines Holdings Inc UAL.O: down 6.9% ** Spirit Airlines Inc SAVE.N: down 2.9% ** JetBlue Airways Corp JBLU.O: down 5.1% BUZZ-U.S. airlines: Fall on concerns of fresh coronavirus cases ** Cardinal Health Inc CAH.N: up 5.2% BUZZ-Cardinal Health Inc: Rises on Q3 EPS, revenue beat ** Marriott International Inc MAR.O: down 6% BUZZ-Marriott: Falls as profit misses lowered expectations ** Vuzix Corp VUZI.O: down 11.7% BUZZ-Vuzix Corp: Tumbles on dismal quarterly results ** Top Ships Inc TOPS.O: up 7.7% BUZZ-Top Ships: Rises after purchase of three medium-range tankers ** Moderna Inc MRNA.O: up 7.4% BUZZ-Moderna's COVID-19 vaccine timeline is 'ambitious' - GlobalData ** Tesla Inc TSLA.O: down 1.1% BUZZ-Tesla slips as China sales of Model 3 vehicles slump 64% ** Cellect Biotechnology Ltd APOP.O: up 97.0% BUZZ-Cellect: Soars on positive bone marrow transplant study data ** Quidel Corp QDEL.O: up 23% BUZZ-Quidel: Jumps as U.S. approves emergency use of first antigen COVID-19 test ** Goldman Sachs Group Inc GS.N: down 1.3% ** JPMorgan Chase & Co JPM.N: down 3% ** Citigroup Inc C.N: down 4.4% ** Wells Fargo & Co WFC.N: down 3% ** Bank of America Corp BAC.N: down 3.9% ** Morgan Stanley MS.N: down 1.2% BUZZ-U.S. big banks: Fall in line with broader market ** Amneal Pharmaceuticals Inc AMRX.N: up 20.8% BUZZ-Amneal Pharma rises after quarterly profit, revenue beat estimates ** Under Armour Inc UAA.N: down 11.3% BUZZ-Under Armour down on weak quarter due to virus-led lockdowns ** AMC Entertainment Holdings Inc AMC.N: up 27.3% ** Amazon.com Inc AMZN.O: up 1% BUZZ-AMC: Jumps on report of takeover talks with Amazon 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 Jones indexes retreated on Monday after last week's rally, as investors worried about a second wave of coronavirus infections with the reopening of several economies. down 1.89% (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.
|
The top three S&P 500 .PG.INX percentage gainers: ** Cardinal Health Inc , up 5.2% ** MarketAxess Holdings Inc , up 4.6% ** Vertex Pharmaceuticals Inc , up 3.5% The top three S&P 500 .PL.INX percentage losers: ** Under Armour Inc , down 11.3% ** Mosaic Company MOS.N, down 9.2% ** Alliance Data Systems Corp , down 7.95% The top three NYSE .PG.N percentage gainers: ** Core Molding Technologies Inc , up 31.6% ** AMC Entertainment Holdings Inc , up 27.3% ** Avaya Holdings Corp , up 26.9% The top three NYSE .PL.N percentage losers: ** Scorpio Bulkers Inc , down 17.3% ** SunCoke Energy Inc , down 16.5% ** ArcelorMittal S.A. , down 15.5% The top three Nasdaq .PG.O percentage gainers: ** Cellect Biotechnology Ltd , up 97% ** Myokardia Inc , up 63.1% ** Mediaco Holding Inc , up 41.3% The top three Nasdaq .PL.O percentage losers: ** Recro Pharma Inc , down 40.1% ** AMAG Pharmaceuticals Inc , down 14.7% ** Select Interior Concepts Inc , down 11.9% ** Conatus Pharmaceuticals Inc CNAT.O: up 4.7% BUZZ-Conatus: Up as FDA approves Histogen application to study hair loss therapy ** Carvana Co CVNA.N: down 2.1% BUZZ-Carvana dips as online used car seller Vroom eyes June IPO [BUZZ-Carvana dips as online used car seller Vroom eyes June IPO] ** Assertio Therapeutics Inc ASRT.O: up 12% BUZZ-Assertio Therapeutics surges on surprise Q1 profit ** Gogo Inc GOGO.O: up 10.7% BUZZ-Gogo Inc: Rises as Q1 revenue beats estimates ** MyoKardia Inc MYOK.O: up 63.1% BUZZ-Myokardia Inc: Surges after heart drug meets main goal in late-stage study ** Quotient Ltd QTNT.O: up 4.9% BUZZ-Quotient Ltd: Rises on COVID-19 antibody test deal in UK ** Recro Pharma Inc REPH.O: down 40.1% BUZZ-Recro Pharma: Slumps on wider-than-expected loss, lowered revenue outlook ** Pioneer Natural Resources Co PXD.N: down 4.9% BUZZ-Pioneer Natural Resources drops ahead of $1 bln convertible debt deal ** Delta Air Lines Inc DAL.N: down 3.8% ** American Airlines Groups Inc AAL.O: down 3.4% ** Southwest Airlines Co LUV.N: down 3.6% ** United Airlines Holdings Inc UAL.O: down 6.9% ** Spirit Airlines Inc SAVE.N: down 2.9% ** JetBlue Airways Corp JBLU.O: down 5.1% BUZZ-U.S. airlines: Fall on concerns of fresh coronavirus cases ** Cardinal Health Inc CAH.N: up 5.2% BUZZ-Cardinal Health Inc: Rises on Q3 EPS, revenue beat ** Marriott International Inc MAR.O: down 6% BUZZ-Marriott: Falls as profit misses lowered expectations ** Vuzix Corp VUZI.O: down 11.7% BUZZ-Vuzix Corp: Tumbles on dismal quarterly results ** Top Ships Inc TOPS.O: up 7.7% BUZZ-Top Ships: Rises after purchase of three medium-range tankers ** Moderna Inc MRNA.O: up 7.4% BUZZ-Moderna's COVID-19 vaccine timeline is 'ambitious' - GlobalData ** Tesla Inc TSLA.O: down 1.1% BUZZ-Tesla slips as China sales of Model 3 vehicles slump 64% ** Cellect Biotechnology Ltd APOP.O: up 97.0% BUZZ-Cellect: Soars on positive bone marrow transplant study data ** Quidel Corp QDEL.O: up 23% BUZZ-Quidel: Jumps as U.S. approves emergency use of first antigen COVID-19 test ** Goldman Sachs Group Inc GS.N: down 1.3% ** JPMorgan Chase & Co JPM.N: down 3% ** Citigroup Inc C.N: down 4.4% ** Wells Fargo & Co WFC.N: down 3% ** Bank of America Corp BAC.N: down 3.9% ** Morgan Stanley MS.N: down 1.2% BUZZ-U.S. big banks: Fall in line with broader market ** Amneal Pharmaceuticals Inc AMRX.N: up 20.8% BUZZ-Amneal Pharma rises after quarterly profit, revenue beat estimates ** Under Armour Inc UAA.N: down 11.3% BUZZ-Under Armour down on weak quarter due to virus-led lockdowns ** AMC Entertainment Holdings Inc AMC.N: up 27.3% ** Amazon.com Inc AMZN.O: up 1% BUZZ-AMC: Jumps on report of takeover talks with Amazon 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 Jones indexes retreated on Monday after last week's rally, as investors worried about a second wave of coronavirus infections with the reopening of several economies. .N At 11:04 ET, the Dow Jones Industrial Average .DJI was down 0.83% at 24,128.71.
|
The top three S&P 500 .PG.INX percentage gainers: ** Cardinal Health Inc , up 5.2% ** MarketAxess Holdings Inc , up 4.6% ** Vertex Pharmaceuticals Inc , up 3.5% The top three S&P 500 .PL.INX percentage losers: ** Under Armour Inc , down 11.3% ** Mosaic Company MOS.N, down 9.2% ** Alliance Data Systems Corp , down 7.95% The top three NYSE .PG.N percentage gainers: ** Core Molding Technologies Inc , up 31.6% ** AMC Entertainment Holdings Inc , up 27.3% ** Avaya Holdings Corp , up 26.9% The top three NYSE .PL.N percentage losers: ** Scorpio Bulkers Inc , down 17.3% ** SunCoke Energy Inc , down 16.5% ** ArcelorMittal S.A. , down 15.5% The top three Nasdaq .PG.O percentage gainers: ** Cellect Biotechnology Ltd , up 97% ** Myokardia Inc , up 63.1% ** Mediaco Holding Inc , up 41.3% The top three Nasdaq .PL.O percentage losers: ** Recro Pharma Inc , down 40.1% ** AMAG Pharmaceuticals Inc , down 14.7% ** Select Interior Concepts Inc , down 11.9% ** Conatus Pharmaceuticals Inc CNAT.O: up 4.7% BUZZ-Conatus: Up as FDA approves Histogen application to study hair loss therapy ** Carvana Co CVNA.N: down 2.1% BUZZ-Carvana dips as online used car seller Vroom eyes June IPO [BUZZ-Carvana dips as online used car seller Vroom eyes June IPO] ** Assertio Therapeutics Inc ASRT.O: up 12% BUZZ-Assertio Therapeutics surges on surprise Q1 profit ** Gogo Inc GOGO.O: up 10.7% BUZZ-Gogo Inc: Rises as Q1 revenue beats estimates ** MyoKardia Inc MYOK.O: up 63.1% BUZZ-Myokardia Inc: Surges after heart drug meets main goal in late-stage study ** Quotient Ltd QTNT.O: up 4.9% BUZZ-Quotient Ltd: Rises on COVID-19 antibody test deal in UK ** Recro Pharma Inc REPH.O: down 40.1% BUZZ-Recro Pharma: Slumps on wider-than-expected loss, lowered revenue outlook ** Pioneer Natural Resources Co PXD.N: down 4.9% BUZZ-Pioneer Natural Resources drops ahead of $1 bln convertible debt deal ** Delta Air Lines Inc DAL.N: down 3.8% ** American Airlines Groups Inc AAL.O: down 3.4% ** Southwest Airlines Co LUV.N: down 3.6% ** United Airlines Holdings Inc UAL.O: down 6.9% ** Spirit Airlines Inc SAVE.N: down 2.9% ** JetBlue Airways Corp JBLU.O: down 5.1% BUZZ-U.S. airlines: Fall on concerns of fresh coronavirus cases ** Cardinal Health Inc CAH.N: up 5.2% BUZZ-Cardinal Health Inc: Rises on Q3 EPS, revenue beat ** Marriott International Inc MAR.O: down 6% BUZZ-Marriott: Falls as profit misses lowered expectations ** Vuzix Corp VUZI.O: down 11.7% BUZZ-Vuzix Corp: Tumbles on dismal quarterly results ** Top Ships Inc TOPS.O: up 7.7% BUZZ-Top Ships: Rises after purchase of three medium-range tankers ** Moderna Inc MRNA.O: up 7.4% BUZZ-Moderna's COVID-19 vaccine timeline is 'ambitious' - GlobalData ** Tesla Inc TSLA.O: down 1.1% BUZZ-Tesla slips as China sales of Model 3 vehicles slump 64% ** Cellect Biotechnology Ltd APOP.O: up 97.0% BUZZ-Cellect: Soars on positive bone marrow transplant study data ** Quidel Corp QDEL.O: up 23% BUZZ-Quidel: Jumps as U.S. approves emergency use of first antigen COVID-19 test ** Goldman Sachs Group Inc GS.N: down 1.3% ** JPMorgan Chase & Co JPM.N: down 3% ** Citigroup Inc C.N: down 4.4% ** Wells Fargo & Co WFC.N: down 3% ** Bank of America Corp BAC.N: down 3.9% ** Morgan Stanley MS.N: down 1.2% BUZZ-U.S. big banks: Fall in line with broader market ** Amneal Pharmaceuticals Inc AMRX.N: up 20.8% BUZZ-Amneal Pharma rises after quarterly profit, revenue beat estimates ** Under Armour Inc UAA.N: down 11.3% BUZZ-Under Armour down on weak quarter due to virus-led lockdowns ** AMC Entertainment Holdings Inc AMC.N: up 27.3% ** Amazon.com Inc AMZN.O: up 1% BUZZ-AMC: Jumps on report of takeover talks with Amazon 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 Jones indexes retreated on Monday after last week's rally, as investors worried about a second wave of coronavirus infections with the reopening of several economies. down 0.32% Consumer Discretionary
|
The top three S&P 500 .PG.INX percentage gainers: ** Cardinal Health Inc , up 5.2% ** MarketAxess Holdings Inc , up 4.6% ** Vertex Pharmaceuticals Inc , up 3.5% The top three S&P 500 .PL.INX percentage losers: ** Under Armour Inc , down 11.3% ** Mosaic Company MOS.N, down 9.2% ** Alliance Data Systems Corp , down 7.95% The top three NYSE .PG.N percentage gainers: ** Core Molding Technologies Inc , up 31.6% ** AMC Entertainment Holdings Inc , up 27.3% ** Avaya Holdings Corp , up 26.9% The top three NYSE .PL.N percentage losers: ** Scorpio Bulkers Inc , down 17.3% ** SunCoke Energy Inc , down 16.5% ** ArcelorMittal S.A. , down 15.5% The top three Nasdaq .PG.O percentage gainers: ** Cellect Biotechnology Ltd , up 97% ** Myokardia Inc , up 63.1% ** Mediaco Holding Inc , up 41.3% The top three Nasdaq .PL.O percentage losers: ** Recro Pharma Inc , down 40.1% ** AMAG Pharmaceuticals Inc , down 14.7% ** Select Interior Concepts Inc , down 11.9% ** Conatus Pharmaceuticals Inc CNAT.O: up 4.7% BUZZ-Conatus: Up as FDA approves Histogen application to study hair loss therapy ** Carvana Co CVNA.N: down 2.1% BUZZ-Carvana dips as online used car seller Vroom eyes June IPO [BUZZ-Carvana dips as online used car seller Vroom eyes June IPO] ** Assertio Therapeutics Inc ASRT.O: up 12% BUZZ-Assertio Therapeutics surges on surprise Q1 profit ** Gogo Inc GOGO.O: up 10.7% BUZZ-Gogo Inc: Rises as Q1 revenue beats estimates ** MyoKardia Inc MYOK.O: up 63.1% BUZZ-Myokardia Inc: Surges after heart drug meets main goal in late-stage study ** Quotient Ltd QTNT.O: up 4.9% BUZZ-Quotient Ltd: Rises on COVID-19 antibody test deal in UK ** Recro Pharma Inc REPH.O: down 40.1% BUZZ-Recro Pharma: Slumps on wider-than-expected loss, lowered revenue outlook ** Pioneer Natural Resources Co PXD.N: down 4.9% BUZZ-Pioneer Natural Resources drops ahead of $1 bln convertible debt deal ** Delta Air Lines Inc DAL.N: down 3.8% ** American Airlines Groups Inc AAL.O: down 3.4% ** Southwest Airlines Co LUV.N: down 3.6% ** United Airlines Holdings Inc UAL.O: down 6.9% ** Spirit Airlines Inc SAVE.N: down 2.9% ** JetBlue Airways Corp JBLU.O: down 5.1% BUZZ-U.S. airlines: Fall on concerns of fresh coronavirus cases ** Cardinal Health Inc CAH.N: up 5.2% BUZZ-Cardinal Health Inc: Rises on Q3 EPS, revenue beat ** Marriott International Inc MAR.O: down 6% BUZZ-Marriott: Falls as profit misses lowered expectations ** Vuzix Corp VUZI.O: down 11.7% BUZZ-Vuzix Corp: Tumbles on dismal quarterly results ** Top Ships Inc TOPS.O: up 7.7% BUZZ-Top Ships: Rises after purchase of three medium-range tankers ** Moderna Inc MRNA.O: up 7.4% BUZZ-Moderna's COVID-19 vaccine timeline is 'ambitious' - GlobalData ** Tesla Inc TSLA.O: down 1.1% BUZZ-Tesla slips as China sales of Model 3 vehicles slump 64% ** Cellect Biotechnology Ltd APOP.O: up 97.0% BUZZ-Cellect: Soars on positive bone marrow transplant study data ** Quidel Corp QDEL.O: up 23% BUZZ-Quidel: Jumps as U.S. approves emergency use of first antigen COVID-19 test ** Goldman Sachs Group Inc GS.N: down 1.3% ** JPMorgan Chase & Co JPM.N: down 3% ** Citigroup Inc C.N: down 4.4% ** Wells Fargo & Co WFC.N: down 3% ** Bank of America Corp BAC.N: down 3.9% ** Morgan Stanley MS.N: down 1.2% BUZZ-U.S. big banks: Fall in line with broader market ** Amneal Pharmaceuticals Inc AMRX.N: up 20.8% BUZZ-Amneal Pharma rises after quarterly profit, revenue beat estimates ** Under Armour Inc UAA.N: down 11.3% BUZZ-Under Armour down on weak quarter due to virus-led lockdowns ** AMC Entertainment Holdings Inc AMC.N: up 27.3% ** Amazon.com Inc AMZN.O: up 1% BUZZ-AMC: Jumps on report of takeover talks with Amazon The 11 major S&P 500 sectors: Communication Services .N At 11:04 ET, the Dow Jones Industrial Average .DJI was down 0.83% at 24,128.71. The S&P 500 .SPX was down 0.43% at 2,917.06 and the Nasdaq Composite .IXIC was up 0.13% at 9,133.09.
|
5893.0
|
2020-05-11 00:00:00 UTC
|
US STOCKS-Futures lower on fears of another wave of virus infections
|
AAL
|
https://www.nasdaq.com/articles/us-stocks-futures-lower-on-fears-of-another-wave-of-virus-infections-2020-05-11
|
nan
|
nan
|
By Medha Singh
May 11 (Reuters) - U.S. stock index futures fell on Monday following a strong week of gains for Wall Street, as investors turned cautious about a second wave of coronavirus infections with several countries reopening economies.
Exxon Mobil Corp XOM.N and Chevron Corp CVX.N fell more than 1% in premarket trading, as oil prices tumbled after Germany and South Korea reported a surge in COVID-19 cases after easing lockdowns. O/R
Battered travel-related stocks, including Carnival Corp CCL.N, Norwegian Cruise Line Holdings Ltd NCLH.N, American Airlines Group Inc AAL.O and United Airlines Holdings Inc UAL.O dropped more than 2% each.
Marriott International Inc MAR.O shed 1.8% as its quarterly profit fell short of already drastically lowered expectations, as bookings plunged.
Hopes of a pickup in business activity powered a Wall Street rally last week, with the Nasdaq .IXIC recouping all its losses for 2020 as investors looked past dire economic data, including a historic 20.5 million jobs wiped out in April.
"The market's confidence in positive news on coronavirus is looking overly optimistic, and there is a sizeable risk the opening up of the economy will be much slower than many think," said Ewout van Schaick, head of multi asset at NN Investment Partners in Netherlands.
However, the benchmark S&P 500 .SPX is still more than 13% below its February record high and analysts have warned of another selloff as macroeconomic data gets worse, foreshadowing a deep and lasting global recession.
"We think it's likely a stretch for investors to chase the move much higher from here," said Eoin Murray, head of investment at Federated Hermes.
After financial markets began pricing in negative U.S. interest rates for the first time ever last week, all eyes will be on Federal Reserve Chair Jerome Powell's outlook on the economy at a webcast event on Wednesday.
At 7:50 a.m. ET, Dow e-minis 1YMcv1 were down 223 points, or 0.92%. S&P 500 e-minis EScv1 were down 27.75 points, or 0.95% and Nasdaq 100 e-minis NQcv1 were down 61.75 points, or 0.67%.
In a bright spot, cosmetics maker Coty Inc COTY.N jumped 13.3% after agreeing to sell a majority stake in its professional beauty and retail hair businesses to investment firm KKR KKR.N in a deal valued at $4.3 billion.
(Reporting by Medha Singh in Bengaluru; Editing by Shounak Dasgupta)
((Medha.Singh@thomsonreuters.com; within U.S. +1646 223 8780, outside U.S. +91 80 6749 1130; Twitter: https://twitter.com/medhasinghs))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
O/R Battered travel-related stocks, including Carnival Corp CCL.N, Norwegian Cruise Line Holdings Ltd NCLH.N, American Airlines Group Inc AAL.O and United Airlines Holdings Inc UAL.O dropped more than 2% each. By Medha Singh May 11 (Reuters) - U.S. stock index futures fell on Monday following a strong week of gains for Wall Street, as investors turned cautious about a second wave of coronavirus infections with several countries reopening economies. Hopes of a pickup in business activity powered a Wall Street rally last week, with the Nasdaq .IXIC recouping all its losses for 2020 as investors looked past dire economic data, including a historic 20.5 million jobs wiped out in April.
|
O/R Battered travel-related stocks, including Carnival Corp CCL.N, Norwegian Cruise Line Holdings Ltd NCLH.N, American Airlines Group Inc AAL.O and United Airlines Holdings Inc UAL.O dropped more than 2% each. S&P 500 e-minis EScv1 were down 27.75 points, or 0.95% and Nasdaq 100 e-minis NQcv1 were down 61.75 points, or 0.67%. (Reporting by Medha Singh in Bengaluru; Editing by Shounak Dasgupta) ((Medha.Singh@thomsonreuters.com; within U.S. +1646 223 8780, outside U.S. +91 80 6749 1130; Twitter: https://twitter.com/medhasinghs)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
O/R Battered travel-related stocks, including Carnival Corp CCL.N, Norwegian Cruise Line Holdings Ltd NCLH.N, American Airlines Group Inc AAL.O and United Airlines Holdings Inc UAL.O dropped more than 2% each. By Medha Singh May 11 (Reuters) - U.S. stock index futures fell on Monday following a strong week of gains for Wall Street, as investors turned cautious about a second wave of coronavirus infections with several countries reopening economies. Hopes of a pickup in business activity powered a Wall Street rally last week, with the Nasdaq .IXIC recouping all its losses for 2020 as investors looked past dire economic data, including a historic 20.5 million jobs wiped out in April.
|
O/R Battered travel-related stocks, including Carnival Corp CCL.N, Norwegian Cruise Line Holdings Ltd NCLH.N, American Airlines Group Inc AAL.O and United Airlines Holdings Inc UAL.O dropped more than 2% each. By Medha Singh May 11 (Reuters) - U.S. stock index futures fell on Monday following a strong week of gains for Wall Street, as investors turned cautious about a second wave of coronavirus infections with several countries reopening economies. Exxon Mobil Corp XOM.N and Chevron Corp CVX.N fell more than 1% in premarket trading, as oil prices tumbled after Germany and South Korea reported a surge in COVID-19 cases after easing lockdowns.
|
5894.0
|
2020-05-11 00:00:00 UTC
|
US STOCKS-Futures slip on fears of new wave of coronavirus cases
|
AAL
|
https://www.nasdaq.com/articles/us-stocks-futures-slip-on-fears-of-new-wave-of-coronavirus-cases-2020-05-11
|
nan
|
nan
|
By Medha Singh
May 11 (Reuters) - U.S. stock index futures dipped on Monday following a strong week of gains for Wall Street, as investors turned cautious about a second wave of coronavirus infections with several countries reopening economies.
Exxon Mobil Corp XOM.N and Chevron Corp CVX.N fell more than 1% in premarket trading, as oil prices tumbled after Germany and South Korea reported a surge in COVID-19 cases after easing lockdowns. O/R
Battered cruise operators and airlines including Carnival Corp CCL.N, Norwegian Cruise Line Holdings Ltd NCLH.N, American Airlines Group Inc AAL.O and United Airlines Holdings Inc UAL.O were also among the early decliners.
Hopes of a pickup in business activity powered a Wall Street rally last week, with the Nasdaq .IXIC recouping all its losses for 2020 as investors looked past dire economic data, including a historic 20.5 million plunge in jobs in April.
However, the benchmark S&P 500 .SPX is still more than 13% below its February record high and analysts have warned of another selloff as macroeconomic data gets worse, foreshadowing a deep and lasting global recession.
After financial markets began pricing in negative U.S. interest rates for the first time ever last week, all eyes will be on Federal Reserve Chair Jerome Powell's outlook on the economy at a webcast event on Wednesday.
At 06:34 a.m. ET, Dow e-minis 1YMcv1 were down 156 points, or 0.64%, S&P 500 e-minis EScv1 were down 19.25 points, or 0.66% and Nasdaq 100 e-minis NQcv1 were down 32.5 points, or 0.35%.
SPDR S&P 500 ETFs SPY.P were down 0.39%.
The S&P 500 index .SPX closed up 1.69% at 2,929.8 on Friday.
(Reporting by Medha Singh in Bengaluru; Editing by Shounak Dasgupta)
((Medha.Singh@thomsonreuters.com; within U.S. +1646 223 8780, outside U.S. +91 80 6749 1130; Twitter: https://twitter.com/medhasinghs))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
O/R Battered cruise operators and airlines including Carnival Corp CCL.N, Norwegian Cruise Line Holdings Ltd NCLH.N, American Airlines Group Inc AAL.O and United Airlines Holdings Inc UAL.O were also among the early decliners. By Medha Singh May 11 (Reuters) - U.S. stock index futures dipped on Monday following a strong week of gains for Wall Street, as investors turned cautious about a second wave of coronavirus infections with several countries reopening economies. Hopes of a pickup in business activity powered a Wall Street rally last week, with the Nasdaq .IXIC recouping all its losses for 2020 as investors looked past dire economic data, including a historic 20.5 million plunge in jobs in April.
|
O/R Battered cruise operators and airlines including Carnival Corp CCL.N, Norwegian Cruise Line Holdings Ltd NCLH.N, American Airlines Group Inc AAL.O and United Airlines Holdings Inc UAL.O were also among the early decliners. ET, Dow e-minis 1YMcv1 were down 156 points, or 0.64%, S&P 500 e-minis EScv1 were down 19.25 points, or 0.66% and Nasdaq 100 e-minis NQcv1 were down 32.5 points, or 0.35%. (Reporting by Medha Singh in Bengaluru; Editing by Shounak Dasgupta) ((Medha.Singh@thomsonreuters.com; within U.S. +1646 223 8780, outside U.S. +91 80 6749 1130; Twitter: https://twitter.com/medhasinghs)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
O/R Battered cruise operators and airlines including Carnival Corp CCL.N, Norwegian Cruise Line Holdings Ltd NCLH.N, American Airlines Group Inc AAL.O and United Airlines Holdings Inc UAL.O were also among the early decliners. By Medha Singh May 11 (Reuters) - U.S. stock index futures dipped on Monday following a strong week of gains for Wall Street, as investors turned cautious about a second wave of coronavirus infections with several countries reopening economies. Hopes of a pickup in business activity powered a Wall Street rally last week, with the Nasdaq .IXIC recouping all its losses for 2020 as investors looked past dire economic data, including a historic 20.5 million plunge in jobs in April.
|
O/R Battered cruise operators and airlines including Carnival Corp CCL.N, Norwegian Cruise Line Holdings Ltd NCLH.N, American Airlines Group Inc AAL.O and United Airlines Holdings Inc UAL.O were also among the early decliners. By Medha Singh May 11 (Reuters) - U.S. stock index futures dipped on Monday following a strong week of gains for Wall Street, as investors turned cautious about a second wave of coronavirus infections with several countries reopening economies. Exxon Mobil Corp XOM.N and Chevron Corp CVX.N fell more than 1% in premarket trading, as oil prices tumbled after Germany and South Korea reported a surge in COVID-19 cases after easing lockdowns.
|
5895.0
|
2020-05-11 00:00:00 UTC
|
American Airlines Faces These 3 Challenges as States Reopen
|
AAL
|
https://www.nasdaq.com/articles/american-airlines-faces-these-3-challenges-as-states-reopen-2020-05-11
|
nan
|
nan
|
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Things haven’t been looking good for the major airlines, American Airlines (NASDAQ:AAL) included. AAL stock is down more than 70% from a year earlier, incurring most of those losses in just the last few months.
Source: GagliardiPhotography / Shutterstock.com
And the airline took an additional hit last week after Warren Buffett announced that Berkshire Hathaway (NYSE:BRK.A, NYSE:BRK.B) sold its remaining airline stocks. Shares of American Airlines, Delta Air Lines (NYSE:DAL), Southwest Airlines (NYSE:LUV) and United Airlines (NASDAQ:UAL) all fell considerably as a result.
Warren Buffett takes a long-term view on investments, so if he doesn’t think AAL stock is worth hanging onto, that could be a major cause for concern.
And Wall Street has become increasingly pessimistic when it comes to the stock as well. AAL stock is considered a moderate sell, and the stock was recently downgraded from equal weight to underweight by a Barclay’s analyst.
Truth be told, there are many reasons to consider bailing on the airline industry right now. Recovery is expected to be a long and slow process, even as states slowly begin reopening.
So if you’re wondering whether AAL stock’s low price point is a reason to invest or a reason to stay far, far away, here are three things to think about.
American’s Downsizing Won’t End Soon
At the beginning of April, 2.4 million people were being screened by the TSA on a daily basis. By the end of the month, that number had fallen to a mere 124,000 people per day. And during the entire month of May, most airlines expect to do less business than they did on a single day during May 2019.
7 of the Best Consumer Stocks to Buy Right Now
This sudden loss of customers and revenue has forced companies like American Airlines to downsize considerably. The airline recently put its entire Airbus (OTCMKTS:EADSY) A330-200 fleet in storage. This helps the company cut down on costs because it doesn’t have to pay for maintenance.
Plus, it makes sense, given that the airlines expect to be flying a lot fewer people in the coming months. It’s likely that we could hear of more pilot retirements in the months to come.
American Airlines Will Likely Lay Off Employees
So far, the airline industry has not been subject to any massive layoffs, and most employees have been able to hold onto their jobs. This is largely thanks to the $2 trillion stimulus package from the federal government.
Companies like American Airlines received payroll assistance, provided that they keep their employees on through Sept. 30. But that could change come Oct. 1.
Airline stocks took a hit earlier this week after a report surfaced that United Airlines plans to cut at least 3,400 positions come October. The report quoted a memo from Kate Gebo, the executive vice president of human resources at United.
“We have to acknowledge that there will be serious consequences to our company if we don’t continue to take strong and decisive action, which includes making decisions that none of us ever wanted or expected to make,” Gebo wrote in the memo.
The CARES Act bought the airline industry some time, but if travel demand doesn’t pick back up, it’s likely that we’ll see layoffs happening across the board.
AAL Stock Has a Heavy Debt Load
One of the biggest risks American Airlines faces right now is its heavy debt load. The company received $5.8 billion thanks to the CARES ACT, and raised an additional $2 billion.
This brings its total debt to a staggering $24 billion. The company’s total debt is much higher than any of its competitors and puts it at a significant risk for insolvency.
American Airlines was already facing plenty of challenges with the novel coronavirus, and its debt only adds to this. CEO Doug Parker summed up the company’s position with the following statement, “Never before has our airline, or our industry, faced such a significant challenge.”
Jamie Johnson is a personal finance freelance writer and has been writing for InvestorPlace since mid-2019. She writes for a number of other well-known financial sites, including Credit Karma, Quicken Loans and Bankrate. As of this writing, Jamie Johnson did not hold a position in any of the aforementioned securities.
The post American Airlines Faces These 3 Challenges as States Reopen appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
InvestorPlace - Stock Market News, Stock Advice & Trading Tips Things haven’t been looking good for the major airlines, American Airlines (NASDAQ:AAL) included. AAL stock is down more than 70% from a year earlier, incurring most of those losses in just the last few months. Warren Buffett takes a long-term view on investments, so if he doesn’t think AAL stock is worth hanging onto, that could be a major cause for concern.
|
InvestorPlace - Stock Market News, Stock Advice & Trading Tips Things haven’t been looking good for the major airlines, American Airlines (NASDAQ:AAL) included. AAL stock is down more than 70% from a year earlier, incurring most of those losses in just the last few months. Warren Buffett takes a long-term view on investments, so if he doesn’t think AAL stock is worth hanging onto, that could be a major cause for concern.
|
InvestorPlace - Stock Market News, Stock Advice & Trading Tips Things haven’t been looking good for the major airlines, American Airlines (NASDAQ:AAL) included. AAL Stock Has a Heavy Debt Load One of the biggest risks American Airlines faces right now is its heavy debt load. AAL stock is down more than 70% from a year earlier, incurring most of those losses in just the last few months.
|
AAL stock is down more than 70% from a year earlier, incurring most of those losses in just the last few months. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Things haven’t been looking good for the major airlines, American Airlines (NASDAQ:AAL) included. Warren Buffett takes a long-term view on investments, so if he doesn’t think AAL stock is worth hanging onto, that could be a major cause for concern.
|
5896.0
|
2020-05-11 00:00:00 UTC
|
The S&P 500 Has Rallied Since March 23. These 5 Stocks Have Not.
|
AAL
|
https://www.nasdaq.com/articles/the-sp-500-has-rallied-since-march-23.-these-5-stocks-have-not.-2020-05-11
|
nan
|
nan
|
The S&P 500 has staged a massive rally off its March low, so massive that you’d expect to see every stock in the index at least up since then. Alas, five of them have dropped since the market hit bottom. While three make sense, the other two are head-scratchers.
Some might describe the S&P 500’s 31% rise since bottoming on March 23 in the same terms (the Nasdaq Composite has risen 34% and the Dow Jones Industrial Average has advanced 30% during the same period). Still, it’s clear that the market responded to a combination of the Federal Reserve’s monetary stimulus and Washington’s fiscal stimulus in a big, big way. Combine that with the possibility that business will reopen sooner rather than later and you have a recipe for a rally.
Not so for American Airlines (AAL), United Airlines (UAL) and Southwest Airlines (LUV), which have dropped 1.1%, 3.2%, and 19.4%, respectively. And why shouldn’t they be? Air travel is halted, they’re burning through billions of dollars, have had to borrow from the government, and we still don’t know when air travel will return. Even Southwest, which had initially held up better than all its peers, finally succumbed. The fact that Warren Buffett’s Berkshire Hathaway (BRK.B) sold the entirety of its stakes in the airlines only added to the pain.
But what to make of Cincinnati Financial (CINF)? It’s an insurance company, and, like most insurance companies, has felt the pain of the economic downturn and the Fed’s low interest-rate policy. Its stock was holding up better than other insurers, including MetLife (MET)—until it reported earnings. It reported a 17% in loss cost, 13% higher underwriting expense and a 74% drop in underwriting profits, according to CFRA analyst Catherine Seifert. To make matters worse, it took a $1.7 billion investment loss, which resulted in a net loss of $7.56 a share. Ouch. No wonder the stock has fallen 16.5% since March 23.
Then there is the mysterious case of Walgreens Boots Alliance (WBA), which has dropped 4.4% since the S&P 500’s bottom on March 23. Walgreens problems really began at the beginning of April, when the company released its fiscal second-quarter 2020 results. Everything was fine until March 21, when sales stumbled, and then Walgreens said it couldn’t predict the future. Since then, Walgreens stock has barely budged. Still, its shares, at just over 11 times trailing earnings, look relatively cheap. It’s one to keep an eye on.
Write to Ben Levisohn at Ben.Levisohn@barrons.com
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Not so for American Airlines (AAL), United Airlines (UAL) and Southwest Airlines (LUV), which have dropped 1.1%, 3.2%, and 19.4%, respectively. Some might describe the S&P 500’s 31% rise since bottoming on March 23 in the same terms (the Nasdaq Composite has risen 34% and the Dow Jones Industrial Average has advanced 30% during the same period). The fact that Warren Buffett’s Berkshire Hathaway (BRK.B) sold the entirety of its stakes in the airlines only added to the pain.
|
Not so for American Airlines (AAL), United Airlines (UAL) and Southwest Airlines (LUV), which have dropped 1.1%, 3.2%, and 19.4%, respectively. The S&P 500 has staged a massive rally off its March low, so massive that you’d expect to see every stock in the index at least up since then. Still, it’s clear that the market responded to a combination of the Federal Reserve’s monetary stimulus and Washington’s fiscal stimulus in a big, big way.
|
Not so for American Airlines (AAL), United Airlines (UAL) and Southwest Airlines (LUV), which have dropped 1.1%, 3.2%, and 19.4%, respectively. To make matters worse, it took a $1.7 billion investment loss, which resulted in a net loss of $7.56 a share. Then there is the mysterious case of Walgreens Boots Alliance (WBA), which has dropped 4.4% since the S&P 500’s bottom on March 23.
|
Not so for American Airlines (AAL), United Airlines (UAL) and Southwest Airlines (LUV), which have dropped 1.1%, 3.2%, and 19.4%, respectively. To make matters worse, it took a $1.7 billion investment loss, which resulted in a net loss of $7.56 a share. No wonder the stock has fallen 16.5% since March 23.
|
5897.0
|
2020-05-11 00:00:00 UTC
|
Takeaways From the Berkshire Hathaway Annual Meeting
|
AAL
|
https://www.nasdaq.com/articles/takeaways-from-the-berkshire-hathaway-annual-meeting-2020-05-11
|
nan
|
nan
|
In this episode of MarketFoolery, Chris Hill and Motley Fool Chief Investment Officer Andy Cross take a look at some business headlines. Their topics include Berkshire Hathaway's (NYSE: BRK.A) (NYSE: BRK.B) airline moves, other things learned from Berkshire's annual meeting, and COVID-19's impact on retail.
To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center. To get started investing, check out our quick-start guide to investing in stocks. A full transcript follows the video.
10 stocks we like better than Walmart
When investing geniuses David and Tom Gardner have an investing tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Walmart wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
Stock Advisor returns as of 2/1/20
This video was recorded on May 4, 2020.
Chris Hill: It's Monday, May 4th. Welcome to MarketFoolery. I'm Chris Hill, with me, Mr. Andy Cross. Good to see you.
Andy Cross: Chris, happy Monday to you.
Hill: Happy Monday. Happy Star Wars day for all the nerds out there.
Cross: Happy Star Wars day. Fantastic. I didn't think about that, but that's great.
Hill: [laughs] You know, may the fourth be with you. It is also the Monday after the Berkshire Hathaway meeting. And we're going to get into retail in a little bit, but we're going to start with the annual meeting.
And there are a few things we're going to get to, but the headline is the airlines, that, United (NASDAQ: UAL), American (NASDAQ: AAL), Southwest (NYSE: LUV), Delta (NYSE: DAL), he sold them all. Cut them all up. We knew he was selling some, and at the meeting we learned, they're all gone.
Cross: Yeah. Actually, in the Q1, which is the quarterly annual filing, he had talked about it and he listed that they sold $6.5 billion in equity sales in April, and so the assumption was that's, you know, a lot of the airlines, right? So, we knew he was selling them. We knew that he was concerned about them. And clearly, this was a sign that he lost faith. And he talked a little bit about the logic, Chris. He admitted a few times that it was a mistake and it was his mistake and they paid $7 billion to $8 billion for those four. Significant stakes obviously. And what he thought was $1 billion in equity earnings and thought that number was likely to grow over time.
And now, considering what has happened in the airline industry over the last few months that clearly the environment has shifted, he had recognized that and just had soured on the prospects of that investment, considering all of the help the airlines need, billions and billions of dollars from the Federal government to help them sustain through this time. And not just through this time, it'll probably be for a couple of years maybe, until we see some sign of normalcy. But who knows what that even looks like, Chris, so I think he saw that.
And you could see it, Warren Buffett, through Berkshire Hathaway, has not made a lot of investing mistakes. And when I say mistakes, I mean lost money. Some certainly haven't done as well as he had expected. Clearly, he kept Kraft Heinz, for example, and others. But even his first go with U.S. Air back in the 90s, which after that experience he had talked about having that 1-800 number that he can call when he has an airline idea, wants to buy another airline. Then lo-and-behold, decades later ended up buying four of them as an airlineaholic, as he called himself. I think that U.S. Air investment still made money. This was a loss. And now it's a real loss because they sold the airlines and they rung up that loss. And I think that just weighed on Warren because he does not like to lose money for shareholders and you could see that in some of his demeanor, I think, throughout the meeting.
Hill: Well, and this is a mistake he's made twice. Like, it's one thing to make a mistake in investing and learn from it, and the jokes about the 1-800 and that sort of thing, but the fact of the matter is, he actually -- you know, whether it was Ted and Todd or people on this team, but he actually said to himself, "You know what? I'm going to take another crack at this." And I think that has to make this sting even more. If it was some other -- like, if it was Burlington Northern that just took a bath or something like that, I don't think it would sting as much.
Cross: I think that's right, Chris. He clearly took the brunt of this, as he should. I mean, this was his investing decision, he mentioned that repeatedly and never talked about Ted and Todd when it comes to the airlines. So, I think he is feeling that sting more so than ever.
The airline industry before the COVID pandemic, Chris, was in much better shape, obviously, just not from a structural perspective, but they were operating much better. They had finally found religion about how to operate an airline and run it, I think, more properly. I think that was one of the encouragement of the last few years for him to invest in airlines. And he started this a few years ago. This just wasn't last year. So, he had been building up these positions.
And so, the airline industry was in better shape. Warren Buffett is a thinker in probabilities that his mind thinks in probabilities and he runs probability numbers in his mind. And he looked at the airline industry and said, hey, this is $7 billion to 48 billion of shareholder capital I can put to work and get a good, nice, healthy return. When he's dealing with very large significant sums of money and he has to be very careful about how he puts that to work to get some kind of return. So, he saw this as a higher probability event looking across the other investment opportunities. And clearly, with the COVID pandemic and the shutdown that just is no longer the case right now.
And like he said, he doesn't really nibble around the edges, win or go all out, and this one is in the go all out category.
Hill: Did it surprise you that he's basically not buying anything? That the other headline is he's still sitting on this massive pile of cash.
Cross: Chris, that wasn't a surprise for me. Now, as they disclosed it in the 10-Q, the activity was, in the first quarter they bought about $4 billion in equity purchases, $1.7 billion in Berkshire stock, and then $2.2 billion or so in equity sales. But if you look at the actual purchases of those over time and look through the quarter and how they bought those, that's what's really enlightening, because in January they were buying, they bought 582,000 of Class B shares. And then between that period of February 24th and February 28th, when the market first took its real big hit from the COVID pandemic, when the news really started to break, they bought $4.5 million worth of Berkshire B at an average price of $214 a share. But then in March, between the 2nd and the 10th, he only bought 320,000 or so of Berkshire B at $214.
But then here's the real surprise, Chris, when the market really took that dive on the 23rd of March, and during that period, he didn't buy at all. And then he hasn't bought at all in April. So, that was a real surprise when the market took that real dip in March that I think he was not more active in buying back his share and wasn't really active in buying back any stock, and he still hasn't been. If you look at his April purchases, he's bought no Berkshire stock and they've only bought about $426 million in equities. And when asked about that at the meeting, Chris, Warren said, "I'm not even sure what that was, that's just small potatoes for us, it might have been a little bit of Todd and Ted," he was very nonchalant about those buys.
So, clearly he has not been as active in the market, and my opinion is, this goes back to how he is feeling about dealing with the airline situation, the loss for shareholders, maybe the stock didn't get quite as cheap as he thought, even though it got down to 1.25X tangible book value. I know he likes to see that below 1.2X tangible book. But the key for me is two things, Chris, for Berkshire buys is, one is that he is looking at the future and he is uncertain for maybe the first time in Berkshire Hathaway, considering the COVID pandemic and what that means for the next year or two of earnings power for Berkshire. So, not sure really of the intrinsic value considering -- he actually kind of said that and hinted at that during the annual meeting near the end, he kind of was like, "Listen, the intrinsic value has been hit because of what I did with the airline industry, that Berkshire is worth less now than it was before." So, I think there's some internal mind games he's playing with the intrinsic value.
And second of all is, capital and cash. And he just values cash so much in this situation, more so than ever that I think he'd rather hold on to it than buy back stock or make other equity purchases.
Hill: Well, and there are two signals in these two headlines. So, the signal for the airlines, and not surprisingly, the four airlines that Berkshire Hathaway owned, United, American, Southwest, Delta, all four of those are down today, all four of them are at or near five-year lows. And so, that's a clear signal for everyone out there who's asking, is it time to buy the airlines because they're cheap? That's a resounding "no."
And then the larger thing, to me, is just Buffett, one of the greatest investors ever, if not the greatest investor ever, is looking at the market and saying, "No, I'm not interested, not at these prices." And you may be right about maybe the ripple effect of what happened with his experience with the airlines the second time around. But put aside the airlines, the fact that Buffett's not buying anything is a little disconcerting to me. I honestly was hoping [laughs] for a little bit more encouragement out of uncle Warren.
Cross: Yeah, Chris, so was I. The tone of the meeting, Whitney Tilson had said it near the end that it was conservative, it wasn't like dour. At the very beginning of the meeting, Warren gave a little bit of a history lesson talking about the don't bet against America, buy America. He talked about the long tenure of time when stocks had really not done anything after he was born, he gave a kind of fun lesson about that during the period of '29 to '51, when stocks really had been flat and what they went through and then, obviously, what they have done since then and the wealth accumulation in America and just the value of investing in America over long periods of time. So, it wasn't dour per se, but it was conservative, it was that kind of thinking through, like, OK, this is a different market than he has ever seen and he talks a little bit about that reference about the fact that pandemics are almost, not the term he used, I don't think, but a black swan event, but you can see it playing into his mind, an uncertainty about what this means for equity prices in the near-term.
He continued to be bullish on investing in America and on stocks, in general, he said that repeatedly. But there was this a little bit of a right-hand and left-hand feeling to the meeting where it was like, well, you're not buying now, but you're kind of saying, like, don't bet against America, and you could see it just playing in his mind and I think shareholders had the same question about, as did I, expecting him to put some of that cash more aggressively to use, and he didn't.
So, there's a little bit of that cautious behavior that we see him taking that I think is catching the investors off guard and you see it in the stock price in Berkshire today.
Hill: Last thing and then we'll move on. And you are absolutely right about his tone, I think he was trying to strike as cleareyed and optimistic a tone as possible, and yet, I was struck by the fact that he just -- for the first time, he looked old. Like, he didn't look old a year ago because a year ago he was 88 and you see him at the meeting and I just remember thinking last year, "Man! He doesn't look 88 years old," he looks 89 now and maybe that's just, he loves this event and he missed it, he wasn't able to have it. I hope that was it. But that was part of what struck me too, because I was like, "Oh, man!" Like, I just want to give them a socially safe distant hug to, sort of, pick him up, because the man just looks down.
Cross: Yeah. He could probably use one. So, 99% of his wealth is tied into Berkshire. His whole life is tied into Berkshire Hathaway, essentially, he created the business. He missed his partner, I think, Charlie Munger, nothing against Greg Abel, another Vice Chairman who works on the operating side, and I think did an admirable job on speaking when he felt he had something to say and then letting Warren take the stage. But I think he missed Charlie Munger, his partner of, you know ... decades, since they really took over Berkshire Hathaway. And so that I think weighed on him.
He just loves this event, man! Like, it brings thousands and thousands of Berkshire shareholders to Omaha. By the way, he mentioned the concern of not having this event, how that will impact the economy of Omaha. I think that weighs on him, because he knows the importance that those businesses have, not just his own businesses, but the jewelry store and the furniture marts, but every small business, hotel around -- whatever it might be, is going to be impacted by not having the event. I think that weighed on him.
But I just think he loves getting people together, talking about Berkshire, celebrating the success, toss newspapers, have dilly bars, play ping-pong, all of those uncle Warren events and activities we're used to seeing, he loves that more than anybody.
And at 89 years old, the fact that he can still go, you know, three, four hours taking questions and trying to answer them as best he can in a situation that's very foreign to him.
He even used slides, Chris, he had mentioned that he had never used it. He hasn't really ever used slides over his decades of teachinginvestment adviceand having all the meetings and he put together some slides for the first time ever, and you could see them, they are very simple slides, no Berkshire framing around them. So, that was kind of fun to see him try to use those. But it was just a different tone and I think you could see that in his demeanor. You know, he's 89 years old, so I don't know how many more Berkshire meetings he has left, I hope he has many more, but clearly at that age, he wants to have as many as he can, like, he wants to have them and this one was not like that.
Hill: J. Crew has filed for bankruptcy. 500 stores, just shy of 500 stores closed. And this was news at the end of last week, we sort of got a hint that this was coming. And I said to you right before we started recording today, this is the first, but this is not going to be the last that we see in 2020, and it's unfortunate but it's not a surprise to me that stocks like -- J. Crew is a private company, but it's not a surprise to me that stocks like American Eagle, Abercrombie & Fitch, Tapestry, VF Corp, which is the parent company of North Face, they're all down today.
Cross: Yeah, Chris, more evidence that the COVID pandemic and the quarantines and lockdowns that we're all facing is impacting the retail and, by the way, the commercial real estate space as well. And Warren Buffett had talked about both of those in the annual meeting.
So, J. Crew, yeah, they've filed for bankruptcy. I think the real, maybe nail in the coffin, to use -- perhaps maybe a bad metaphor, but a metaphor nonetheless -- was the fact that the IPO market had really shut down and they couldn't take their Madewell business and IPO that to help get a little bit of juice and some funding and some capital into the business. And when basically they couldn't do that, that was a troubling sign.
Like you said, they have hundreds of J. Crew stores, hundreds of outlet stores, like, 170 outlet stores, a 150 maybe Madewell stores around the country. And no one's going in those or very few. Now, they do have a little bit of an e-commerce business, but on the margin, it just can't make up for what is going on in the loss of revenues and then cash flow. And when you have $1.7 billion of debt on the balance sheet, that's just a very tricky situation to be in.
I will note from the public side, that it's interesting that in 2010-2011, TPG and Leonard Green took J. Crew private at about a $3 billion market valuation, and I can't imagine it's worth anywhere near that even before this, because the retail environment has been so challenging and competitive advantages are very faint in the retail space.
And so, like you said, a lot of them are struggling right now. And J. Crew filed Chapter 11, and now so the financing that they had to arrange basically just to be able to keep some of the lights on and some of the stores open.
Hill: It's going to be interesting to see if some of these, particularly in the apparel retail space, if some of them start to get proactive and look for buyout opportunities, because J. Crew has brand equity, like, you know, there is a universe in which [laughs] J. Crew continues, maybe it's part of a larger parent company, maybe a major retailer, like, Target or someone like that comes in and says alright, at this price American Eagle will be the exclusive retail location for you and take out some of your costs, and that sort of thing. But it wouldn't surprise me if some of them started to pick up the phone and hunt around for a buyer.
Cross: Yeah, maybe. I mean, J. Crew, Chris, they've struggled. It's been the last few years. I mean, Jan Singer, who is the CEO, comes over from -- I think she was President of Spanx, she has experience at Nike, Victoria's Secret, I mean, she has vast experience. Mickey Drexler was there, the famed retail executive for many, many years then he was out, then they had another CEO come in after Mickey Drexler for 16 months before he left and then Jan Singer joined. Very talented people, obviously, lots of insights and it's just a very tough environment. Even before this, the retail environment and we know what's happening with the likes of Amazon, the likes of, take Stitch Fix, for example. Just the competitive pressure that they are under is more fierce than ever before. And that's not going to change, that is just going to pass the pandemic and pass the quarantines. That is just going to continue to elevate and evolve and become more pronounced. And so, the retail space, you know, maybe it's acquisition, maybe it's mergers, maybe it's some kind of lifeline, but I don't know how many private equity firms are out there and start spending the capital to help some of these businesses.
Hill: Andy Cross, thanks for being here, man.
Cross: Hey, thanks, Chris, be safe, my man.
Hill: As always, people on the program may have interests in the stocks they talk about, and The Motley Fool may have formal recommendations for or against, so don't buy or sell stocks based solely on what you hear.
That's going to do it for this edition of MarketFoolery. The show is mixed by Dan Boyd. I'm Chris Hill, thanks for listening, we'll see you tomorrow.
John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Andy Cross owns shares of Berkshire Hathaway (B shares), Kraft Heinz, and Stitch Fix. Chris Hill owns shares of Amazon. The Motley Fool owns shares of and recommends Amazon, Berkshire Hathaway (B shares), Delta Air Lines, Nike, Southwest Airlines, Stitch Fix, and Tapestry and recommends the following options: long January 2021 $200 calls on Berkshire Hathaway (B shares), short January 2021 $200 puts on Berkshire Hathaway (B shares), short June 2020 $205 calls on Berkshire Hathaway (B shares), 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.
|
And there are a few things we're going to get to, but the headline is the airlines, that, United (NASDAQ: UAL), American (NASDAQ: AAL), Southwest (NYSE: LUV), Delta (NYSE: DAL), he sold them all. In this episode of MarketFoolery, Chris Hill and Motley Fool Chief Investment Officer Andy Cross take a look at some business headlines. So, clearly he has not been as active in the market, and my opinion is, this goes back to how he is feeling about dealing with the airline situation, the loss for shareholders, maybe the stock didn't get quite as cheap as he thought, even though it got down to 1.25X tangible book value.
|
And there are a few things we're going to get to, but the headline is the airlines, that, United (NASDAQ: UAL), American (NASDAQ: AAL), Southwest (NYSE: LUV), Delta (NYSE: DAL), he sold them all. Their topics include Berkshire Hathaway's (NYSE: BRK.A) (NYSE: BRK.B) airline moves, other things learned from Berkshire's annual meeting, and COVID-19's impact on retail. Andy Cross owns shares of Berkshire Hathaway (B shares), Kraft Heinz, and Stitch Fix.
|
And there are a few things we're going to get to, but the headline is the airlines, that, United (NASDAQ: UAL), American (NASDAQ: AAL), Southwest (NYSE: LUV), Delta (NYSE: DAL), he sold them all. So, that was a real surprise when the market took that real dip in March that I think he was not more active in buying back his share and wasn't really active in buying back any stock, and he still hasn't been. But the key for me is two things, Chris, for Berkshire buys is, one is that he is looking at the future and he is uncertain for maybe the first time in Berkshire Hathaway, considering the COVID pandemic and what that means for the next year or two of earnings power for Berkshire.
|
And there are a few things we're going to get to, but the headline is the airlines, that, United (NASDAQ: UAL), American (NASDAQ: AAL), Southwest (NYSE: LUV), Delta (NYSE: DAL), he sold them all. In this episode of MarketFoolery, Chris Hill and Motley Fool Chief Investment Officer Andy Cross take a look at some business headlines. This just wasn't last year.
|
5898.0
|
2020-05-11 00:00:00 UTC
|
Hyatt Partners With American Airlines to Give New York Medical Workers Free Flights, Stays
|
AAL
|
https://www.nasdaq.com/articles/hyatt-partners-with-american-airlines-to-give-new-york-medical-workers-free-flights-stays
|
nan
|
nan
|
Saluting those at the epicenter of America's COVID-19 epidemic, Hyatt Hotels (NYSE: H) is partnering with American Airlines (NASDAQ: AAL) to provide more than 4,000 doctors, nurses, and others from NYC Health + Hospitals/Elmhurst with free round trips redeemable later in the year. Every worker at the healthcare facility is included in the specially arranged package.
The trips will involve round-trip American Airlines flights to and from select destinations in both the United States and the Caribbean islands. The airline refers to the medical workers as "special guests" and says they will receive "priority airfare."
Image source: Hyatt Hotels.
Hyatt Hotels, which saw its share value rise nearly 20% during April as investors bet on a quick rebound, will provide three-night stays at the vacation destinations chosen from the available options. The press release states that the healthcare workers will "be able to unwind with wellbeing experiences, world-class food and beverage menus, outdoor activities and more" while staying at the Hyatt.
Both participating companies are both also allowing loyalty program members to donate their points or miles as a thank-you gift to medical personnel. The donations can be made through pages set up on their respective sites, hyatt.com/thankyou and aa.com.
The CEO of the Elmhurst hospital facility, Israel Rocha, expressed gratitude to Hyatt and American in turn, saying that the medical staff "really appreciate the outpouring of support from two of America's major companies, and we look forward to taking advantage of these well-earned vacations in the near future." Hyatt CEO Mark Hoplamazian remarked, "we look forward to making their stays special when they are able to take a hard-earned break."
10 stocks we like better than Hyatt Hotels
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 Hyatt Hotels 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 April 16, 2020
Rhian Hunt has no position in any of the stocks mentioned. The Motley Fool recommends Hyatt Hotels. 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.
|
Saluting those at the epicenter of America's COVID-19 epidemic, Hyatt Hotels (NYSE: H) is partnering with American Airlines (NASDAQ: AAL) to provide more than 4,000 doctors, nurses, and others from NYC Health + Hospitals/Elmhurst with free round trips redeemable later in the year. Hyatt Hotels, which saw its share value rise nearly 20% during April as investors bet on a quick rebound, will provide three-night stays at the vacation destinations chosen from the available options. The CEO of the Elmhurst hospital facility, Israel Rocha, expressed gratitude to Hyatt and American in turn, saying that the medical staff "really appreciate the outpouring of support from two of America's major companies, and we look forward to taking advantage of these well-earned vacations in the near future."
|
Saluting those at the epicenter of America's COVID-19 epidemic, Hyatt Hotels (NYSE: H) is partnering with American Airlines (NASDAQ: AAL) to provide more than 4,000 doctors, nurses, and others from NYC Health + Hospitals/Elmhurst with free round trips redeemable later in the year. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. The Motley Fool recommends Hyatt Hotels.
|
Saluting those at the epicenter of America's COVID-19 epidemic, Hyatt Hotels (NYSE: H) is partnering with American Airlines (NASDAQ: AAL) to provide more than 4,000 doctors, nurses, and others from NYC Health + Hospitals/Elmhurst with free round trips redeemable later in the year. The CEO of the Elmhurst hospital facility, Israel Rocha, expressed gratitude to Hyatt and American in turn, saying that the medical staff "really appreciate the outpouring of support from two of America's major companies, and we look forward to taking advantage of these well-earned vacations in the near future." 10 stocks we like better than Hyatt Hotels When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen.
|
Saluting those at the epicenter of America's COVID-19 epidemic, Hyatt Hotels (NYSE: H) is partnering with American Airlines (NASDAQ: AAL) to provide more than 4,000 doctors, nurses, and others from NYC Health + Hospitals/Elmhurst with free round trips redeemable later in the year. Every worker at the healthcare facility is included in the specially arranged package. * David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Hyatt Hotels wasn't one of them!
|
5899.0
|
2020-05-11 00:00:00 UTC
|
Australian state launches enquiry into Anglo coal mine blast
|
AAL
|
https://www.nasdaq.com/articles/australian-state-launches-enquiry-into-anglo-coal-mine-blast-2020-05-11
|
nan
|
nan
|
MELBOURNE, May 11 (Reuters) - Australia's Queensland on Monday ordered an independent enquiry into an explosion at a coal mine run by Anglo American AAL.L in the state that last week critically injured five workers.
The accident took place 15 months after another Anglo American worker was killed at a nearby mining complex and comes just months after a review called for tighter regulation of the sector that has seen at least 48 deaths since 2000.
The probe will be led by a retired judge or Queens Counsel who will be able to conduct hearings, call witnesses and make broad inquiries relating to the blast, state mines minister Anthony Lynham said.
"An underground gas explosion in a coal mine is simply unacceptable in the 21st century," Lynham said in a statement.
"This latest board of inquiry is an opportunity to continue this government's sweeping reforms to protect mine workers."
Miners remained in critical condition after suffering burns to their upper bodies and airways following the blast, local media reported.
The state is also considering the introduction of industrial manslaughter laws which could make resources executives culpable for workplace fatalities, legislation which is expected to be voted on before a State election in October 2020.
If the Bill passes in its current form, it will create significant potential liability for employers and senior officers in the Queensland resources industry, law firm McCullough Robertson said.
The maximum penalty for an individual would be 20 years imprisonment and for a company, a fine of over $13 million.
It is advising businesses to "review existing work health and safety processes and procedures to ensure compliance."
Last year's fatality was one of four across the Anglo American's operations, after two people died at its South American copper operations, and another at its South American thermal coal business, according to its 2019 annual report.
Anglo American said it would cooperate fully in all investigations.
"We want answers as to why an ignition of methane occurred at Grosvenor mine and we understand that everyone else does too," CEO of Anglo American's Metallurgical Coal business, Tyler Mitchelson said.
The miner has already started its own review into the incident with industry experts, including in the areas of methane and ventilation management and forensic fire analysis.
"We will not recommence mining at Grosvenor until we know what happened and how we can prevent it happening again," he said in a statement.
Members of the probe's board and terms of reference are to be determined by the end of the month.
Grosvenor produced 4.7 million tonnes of metallurgical or steel-making coal in 2019.
(Reporting by Melanie Burton, editing by Louise Heavens)
((melanie.burton@thomsonreuters.com Twitter: @MelanieMetals; +613 9286 1421; Reuters Messaging: melanie.burton.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.
|
MELBOURNE, May 11 (Reuters) - Australia's Queensland on Monday ordered an independent enquiry into an explosion at a coal mine run by Anglo American AAL.L in the state that last week critically injured five workers. The probe will be led by a retired judge or Queens Counsel who will be able to conduct hearings, call witnesses and make broad inquiries relating to the blast, state mines minister Anthony Lynham said. If the Bill passes in its current form, it will create significant potential liability for employers and senior officers in the Queensland resources industry, law firm McCullough Robertson said.
|
MELBOURNE, May 11 (Reuters) - Australia's Queensland on Monday ordered an independent enquiry into an explosion at a coal mine run by Anglo American AAL.L in the state that last week critically injured five workers. If the Bill passes in its current form, it will create significant potential liability for employers and senior officers in the Queensland resources industry, law firm McCullough Robertson said. "We want answers as to why an ignition of methane occurred at Grosvenor mine and we understand that everyone else does too," CEO of Anglo American's Metallurgical Coal business, Tyler Mitchelson said.
|
MELBOURNE, May 11 (Reuters) - Australia's Queensland on Monday ordered an independent enquiry into an explosion at a coal mine run by Anglo American AAL.L in the state that last week critically injured five workers. Last year's fatality was one of four across the Anglo American's operations, after two people died at its South American copper operations, and another at its South American thermal coal business, according to its 2019 annual report. "We want answers as to why an ignition of methane occurred at Grosvenor mine and we understand that everyone else does too," CEO of Anglo American's Metallurgical Coal business, Tyler Mitchelson said.
|
MELBOURNE, May 11 (Reuters) - Australia's Queensland on Monday ordered an independent enquiry into an explosion at a coal mine run by Anglo American AAL.L in the state that last week critically injured five workers. "An underground gas explosion in a coal mine is simply unacceptable in the 21st century," Lynham said in a statement. The state is also considering the introduction of industrial manslaughter laws which could make resources executives culpable for workplace fatalities, legislation which is expected to be voted on before a State election in October 2020.
|
Subsets and Splits
No community queries yet
The top public SQL queries from the community will appear here once available.