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6000.0
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2020-04-28 00:00:00 UTC
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Southwest posts first quarterly loss in 9 years and warns of more coronavirus clouds
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AAL
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https://www.nasdaq.com/articles/southwest-posts-first-quarterly-loss-in-9-years-and-warns-of-more-coronavirus-clouds-2020
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By Tracy Rucinski
April 28 (Reuters) - Southwest Airlines Co LUV.N posted on Tuesday a $94 million net loss in the first quarter, its first quarterly loss in nine years, due to the coronavirus pandemic and said it sees no major improvement in air travel in the second quarter.
The COVID-19 crisis has decimated travel demand, with an unprecedented number of flight cancellations in the second half of March.
Dallas-based Southwest swung to a net loss of $94 million for the quarter ended March 31, compared to a profit of $387 million a year earlier. Excluding special items, the loss was $77 million, or a $0.15 loss per share.
Total operating revenue declined 17.8% to $4.2 billion. It sees operating revenue falling 90% to 95% in both April and May, when it does not expect load factors to surpass 10%.
While the airline has more bookings for June and July - albeit in a drastically reduced flight schedule - it said it cannot reasonably estimate any revenue trends beyond May.
"We have no idea what kind of cancellations will come through before those travel dates; there's no way to be comfortable with what will happen to those reservations," Southwest Chief Executive Officer Gary Kelly told Reuters.
The coronavirus outbreak has led to the deaths of over 207,000 people around the world, including more than 55,000 in the United States, according to a Reuters tally.
Stay-at-home orders remain in much of the world and it is an open question as to when people will feel comfortable traveling again and under what safety requirements.
Airlines including Southwest support pre-boarding temperature checks, face masks and social distancing measures on airplanes and in airports.
"We do think there's a role for the federal government to play here and as an industry we'll be advocating for that," Kelly said.
Southwest's average daily cash burn will slow to between $30 million and $35 million in the second quarter, due to a series of cost-cutting measures and capital raisings, including government aid, it said.
The airline is receiving about $3.3 billion in government payroll support and said it was considering tapping an additional $2.8 billion in secured government loans under the stimulus package known as the CARES Act, among other liquidity options.
It had $9.3 billion in cash and short-term investments as of April 24, with leverage of 47%.
Under the terms of government payroll support, airlines cannot lay off employees before Sept. 30. If demand remains weak, Southwest has said it may need to reduce its workforce after that date and re-think its fleet.
Southwest, which only operates Boeing 737s, said it has already reached an agreement with Boeing Co BA.N to take no more than 48 new 737 MAX jets until Dec. 2021, a fraction of its firm order commitment of 123 of the currently grounded aircraft.
Delta Air Lines Inc DAL.N posted a first-quarter loss last week and U.S. majors American Airlines Group Inc AAL.O and United Airlines Holdings Inc UAL.O are due to report on Thursday.
(Reporting by Tracy Rucinski and Sanjana Shivdas; Editing by 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.
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Delta Air Lines Inc DAL.N posted a first-quarter loss last week and U.S. majors American Airlines Group Inc AAL.O and United Airlines Holdings Inc UAL.O are due to report on Thursday. While the airline has more bookings for June and July - albeit in a drastically reduced flight schedule - it said it cannot reasonably estimate any revenue trends beyond May. "We have no idea what kind of cancellations will come through before those travel dates; there's no way to be comfortable with what will happen to those reservations," Southwest Chief Executive Officer Gary Kelly told Reuters.
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Delta Air Lines Inc DAL.N posted a first-quarter loss last week and U.S. majors American Airlines Group Inc AAL.O and United Airlines Holdings Inc UAL.O are due to report on Thursday. By Tracy Rucinski April 28 (Reuters) - Southwest Airlines Co LUV.N posted on Tuesday a $94 million net loss in the first quarter, its first quarterly loss in nine years, due to the coronavirus pandemic and said it sees no major improvement in air travel in the second quarter. Airlines including Southwest support pre-boarding temperature checks, face masks and social distancing measures on airplanes and in airports.
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Delta Air Lines Inc DAL.N posted a first-quarter loss last week and U.S. majors American Airlines Group Inc AAL.O and United Airlines Holdings Inc UAL.O are due to report on Thursday. By Tracy Rucinski April 28 (Reuters) - Southwest Airlines Co LUV.N posted on Tuesday a $94 million net loss in the first quarter, its first quarterly loss in nine years, due to the coronavirus pandemic and said it sees no major improvement in air travel in the second quarter. Southwest's average daily cash burn will slow to between $30 million and $35 million in the second quarter, due to a series of cost-cutting measures and capital raisings, including government aid, it said.
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Delta Air Lines Inc DAL.N posted a first-quarter loss last week and U.S. majors American Airlines Group Inc AAL.O and United Airlines Holdings Inc UAL.O are due to report on Thursday. By Tracy Rucinski April 28 (Reuters) - Southwest Airlines Co LUV.N posted on Tuesday a $94 million net loss in the first quarter, its first quarterly loss in nine years, due to the coronavirus pandemic and said it sees no major improvement in air travel in the second quarter. Total operating revenue declined 17.8% to $4.2 billion.
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6001.0
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2020-04-28 00:00:00 UTC
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American Airlines To Give Face Masks, Sanitizing Wipes To Customers
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AAL
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https://www.nasdaq.com/articles/american-airlines-to-give-face-masks-sanitizing-wipes-to-customers-2020-04-28
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(RTTNews) - American Airlines said that from early May, it will start distributing face masks and sanitizing wipes or gels to customers boarding its aircraft. The airline will also ask its flight attendants to wear protective masks during every mainline and regional flight from May 1.
American Airlines said its offering of personal protective equipment to customers will expand to all flights as supplies and operational conditions allow.
The airlines said it has added a drawer in the galley on every mainline flight that contains personal protective equipment, including masks for flight attendants and pilots, and other sanitizing items.
Improvements to cleaning procedures on board its flights will begin this week and will be expanded to every mainline as well as regional flight over time. The carrier will expand deeper cleanings and disinfection to all regional flights.
The airline also plans to step up cleaning procedures in customer areas to disinfect tray tables, seatbelt buckles, armrests, window shades and seatback screens. It will also include wiping door and overhead bin handles.
In crew member areas, the airline will implement enhanced galley cleaning and also clean jumpseats, crew rest seats as well as cockpit surfaces.
Airline labor unions have been demanding increased access for airline crew to personal protective equipment amid the coronavirus pandemic. Flight attendants have expressed concerns that they are at high risk of exposure to COVID-19 while on their jobs.
Among other U.S. airlines, JetBlue said Sunday that all passengers on its flights would be required to wear face masks during travel, starting from May 4. The new policy, which made JetBlue the first major U.S. airline to enforce such a rule, came after the airline began requiring all crew members to wear face coverings while on duty.
United Airlines also requires its flight attendants to wear face masks on board flights.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - American Airlines said that from early May, it will start distributing face masks and sanitizing wipes or gels to customers boarding its aircraft. American Airlines said its offering of personal protective equipment to customers will expand to all flights as supplies and operational conditions allow. The airline also plans to step up cleaning procedures in customer areas to disinfect tray tables, seatbelt buckles, armrests, window shades and seatback screens.
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The airline will also ask its flight attendants to wear protective masks during every mainline and regional flight from May 1. The airlines said it has added a drawer in the galley on every mainline flight that contains personal protective equipment, including masks for flight attendants and pilots, and other sanitizing items. United Airlines also requires its flight attendants to wear face masks on board flights.
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The airline will also ask its flight attendants to wear protective masks during every mainline and regional flight from May 1. The airlines said it has added a drawer in the galley on every mainline flight that contains personal protective equipment, including masks for flight attendants and pilots, and other sanitizing items. United Airlines also requires its flight attendants to wear face masks on board flights.
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The airline will also ask its flight attendants to wear protective masks during every mainline and regional flight from May 1. The airlines said it has added a drawer in the galley on every mainline flight that contains personal protective equipment, including masks for flight attendants and pilots, and other sanitizing items. United Airlines also requires its flight attendants to wear face masks on board flights.
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6002.0
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2020-04-28 00:00:00 UTC
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Why Airline Shares Are Up Today
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AAL
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https://www.nasdaq.com/articles/why-airline-shares-are-up-today-2020-04-28
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What happened
Shares of U.S. airlines are gaining altitude on Tuesday, powered by a number of new datapoints that indicate the industry still has access to capital markets, and is holding up as well as can be expected despite a dramatic drop-off in travel demand. Airlines are far from out of danger, but all indications are that they're weathering the storm.
Shares of Spirit Airlines (NYSE: SAVE) and Alaska Air Group (NYSE: ALK) were both up 10% apiece as of 12:30 p.m. EDT. Shares of United Airlines Holdings (NASDAQ: UAL), American Air Group (NASDAQ: AAL), Delta Air Lines (NYSE: DAL), and JetBlue Airways (NASDAQ: JBLU) were all up more than 5%.
Image source: Getty Images.
So what
The airlines headed into first-quarter earnings season with investors focused more on what is going on now than concerned with what happened months ago. The COVID-19 pandemic has caused global travel demand to fall by more than 90%, leading airlines to scramble to cut costs and raising questions about their long-term viability.
Investors have responded by running for the emergency exits, sending shares of these airlines down between 53% and 69% year to date. Revenue has all but dried up, with United, for example, expecting to fly fewer people during the entire month of May 2020 than it did on a single day in May 2019. The question for airlines at this point is whether they have enough cash to hold on until traffic eventually returns.
Airlines data by YCharts.
Investors have received some good news in recent days about airline liquidity, and the industry's ability to raise fresh capital. Delta is reportedly increasing the size of a planned debt offering by $2 billion to $5 billion because it sees robust demand for the notes, and Southwest Airlines (NYSE: LUV) intends to tap debt and equity markets for $2.6 billion in fresh capital.
Southwest also reported earnings on Tuesday, and in its presentation said it expects to bleed through $30 million to $35 million in cash each day during the current quarter. The company had $5.5 billion in cash as of March 31, which leaves time for traffic to recover.
Although Southwest is arguably healthier than most of the other airlines, the entire industry is experiencing this slowdown together, so the company's experiences are relevant to what is going on at other carriers.
Some of the airlines most vulnerable to a downturn are the stocks getting the biggest boosts on Tuesday. Spirit is a niche airline with a significant debt load, and American has the highest debt balance in the industry. JetBlue, meanwhile, has carved out a niche catering to travelers willing to pay higher fares for more amenities. Those travelers could be hard to find in a recession.
Now what
Airlines are priced for disaster today, and to be fair, the industry has a long history of bankruptcies every time the economy turns south. But what is happening due to COVID-19 is unprecedented, and investors have every reason to be frightened.
I believe the airlines can survive without bankruptcies. However, it's likely to be a slow recovery, and air traffic might not return to pre-pandemic levels for three to five years. If so, a lot of sectors are likely to recover before the airlines do.
For those interested in investing in an airline and riding out the turbulence, I'd suggest sticking to top-performing companies. Airlines appear to have levers to pull to remain solvent, but still have a long recovery ahead.
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Lou Whiteman owns shares of Delta Air Lines and Spirit Airlines. The Motley Fool owns shares of and recommends Delta Air Lines, Southwest Airlines, and Spirit Airlines. The Motley Fool recommends Alaska Air Group and JetBlue Airways. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shares of United Airlines Holdings (NASDAQ: UAL), American Air Group (NASDAQ: AAL), Delta Air Lines (NYSE: DAL), and JetBlue Airways (NASDAQ: JBLU) were all up more than 5%. What happened Shares of U.S. airlines are gaining altitude on Tuesday, powered by a number of new datapoints that indicate the industry still has access to capital markets, and is holding up as well as can be expected despite a dramatic drop-off in travel demand. The COVID-19 pandemic has caused global travel demand to fall by more than 90%, leading airlines to scramble to cut costs and raising questions about their long-term viability.
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Shares of United Airlines Holdings (NASDAQ: UAL), American Air Group (NASDAQ: AAL), Delta Air Lines (NYSE: DAL), and JetBlue Airways (NASDAQ: JBLU) were all up more than 5%. The Motley Fool owns shares of and recommends Delta Air Lines, Southwest Airlines, and Spirit Airlines. The Motley Fool recommends Alaska Air Group and JetBlue Airways.
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Shares of United Airlines Holdings (NASDAQ: UAL), American Air Group (NASDAQ: AAL), Delta Air Lines (NYSE: DAL), and JetBlue Airways (NASDAQ: JBLU) were all up more than 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 owns shares of and recommends Delta Air Lines, Southwest Airlines, and Spirit Airlines.
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Shares of United Airlines Holdings (NASDAQ: UAL), American Air Group (NASDAQ: AAL), Delta Air Lines (NYSE: DAL), and JetBlue Airways (NASDAQ: JBLU) were all up more than 5%. However, it's likely to be a slow recovery, and air traffic might not return to pre-pandemic levels for three to five years. See the 10 stocks *Stock Advisor returns as of April 16, 2020 Lou Whiteman owns shares of Delta Air Lines and Spirit Airlines.
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6003.0
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2020-04-28 00:00:00 UTC
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Stay on the Sidelines While Delta Stock Is Up in the Air
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AAL
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https://www.nasdaq.com/articles/stay-on-the-sidelines-while-delta-stock-is-up-in-the-air-2020-04-29
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
[Editor’s Note: “Stay on the Sidelines While Delta Stock Is Up in the Air” was originally published April 13, 2020. It is regularly updated to include the most relevant information.]
Source: NextNewMedia / Shutterstock.com
It’s no secret the novel coronavirus has been bad news for Delta Air Lines (NYSE:DAL) stock. The legacy carrier’s shares have tumbled more than 60% since the pandemic first made headlines earlier this year. Yet, it’s highly tempting to take a look at battered stocks like this. Mr. Market may be reasonably discounting their uncertain prospects, but shares could still be a great contrarian play.
Many things remain uncertain. On one hand, the recent stimulus package may mean the airlines won’t be facing Chapter 11 bankruptcy anytime soon. On the other hand, even if the novel coronavirus quickly fades away, what’s to say airlines will see a V-shaped recovery? We could see a U-shaped recovery. Or worse.
Yes, once it’s salad days again for airlines, earnings could head back to prior levels. In turn, Delta will see its shares soar again. But how long until then? Could shares tumble further in the meantime?
A key question is whether Delta is relatively stronger than legacy rivals like American Airlines (NASDAQ:AAL) and United Airlines (NASDAQ:UAL). Compared to these two, they may be in better shape. But considering the amount of cash burn the company is facing, relative strength may not be enough to ride out the storm.
7 Smart Stocks to Watch as Volatility Stays Soaring
So, what’s the verdict with Delta? Let’s dive in and find out.
What’s Next for DAL Stock After the Coronavirus?
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. Last month, 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, Stifel’s Joseph DeNardi sees Delta as financially stronger relative to legacy carriers like American. The analyst maintains his “buy” rating on the company’s shares. But this may not be enough to weather the storm.
Like its rivals, Delta secured billions in payroll support from the recent $2 trillion CARES Act stimulus bill. It’s hard to say whether this is a good or bad for the stock. Some feared a bailout would mean big time dilution. But dilution wound up being less painful than previously feared.
However, a government bailout alone won’t push Delta’s stock back to its high water mark. It could be years before air travel returns to pre-coronavirus levels. Shares could tread water, or fall to lower prices, in the next few years.
Given how risky and uncertain the airline situation has become, it’s no surprise Warren Buffett trimmed Berkshire Hathaway’s (NYSE:BRK.A, NYSE:BRK.B) stakes in airline stocks.
Should You Care Buffett Is Selling Shares?
In the past few weeks, Berkshire Hathaway has trimmed their position in DAL, along with other airline stocks like American, United, and Southwest Airlines (NYSE:LUV).
Some are even speculating they’ve sold most or all of their airline stock portfolio. Given the big change in the operating environment for airlines, it makes perfect sense Buffett and Berkshire could be doing 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 price fall to lower levels.
In short, the thesis has changed on airline stocks. It’s no surprise investors like Buffett could be cutting their losses.
It Remains Up in the Air for Delta
Delta may have 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. The recent stimulus bill could provide relief, but this alone won’t speed up an air travel rebound.
With Buffett trimming his position and the carrier’s potential outcomes far from rosy, it’s best to stay on the sidelines and take a wait-and-see approach with Delta.
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 Stay on the Sidelines While Delta Stock Is 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.
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A key question is whether Delta is relatively stronger than legacy rivals like American Airlines (NASDAQ:AAL) and United Airlines (NASDAQ:UAL). Last month, CEO Ed Bastian reported in a letter to employees the airline was burning through “$50 million in cash each day” due to the pandemic. Best case scenario, airlines ride out the weak air travel market, and return to prior price levels a few years out.
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A key question is whether Delta is relatively stronger than legacy rivals like American Airlines (NASDAQ:AAL) and United Airlines (NASDAQ:UAL). Given how risky and uncertain the airline situation has become, it’s no surprise Warren Buffett trimmed Berkshire Hathaway’s (NYSE:BRK.A, NYSE:BRK.B) stakes in airline stocks. Best case scenario, airlines ride out the weak air travel market, and return to prior price levels a few years out.
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A key question is whether 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 Stock Is Up in the Air” was originally published April 13, 2020. Given how risky and uncertain the airline situation has become, it’s no surprise Warren Buffett trimmed Berkshire Hathaway’s (NYSE:BRK.A, NYSE:BRK.B) stakes in airline stocks.
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A key question is whether Delta is relatively stronger than legacy rivals like American Airlines (NASDAQ:AAL) and United Airlines (NASDAQ:UAL). But considering the amount of cash burn the company is facing, relative strength may not be enough to ride out the storm. The three major legacy airlines, American, Delta, and United, all face big trouble from the coronavirus.
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6004.0
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2020-04-28 00:00:00 UTC
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American Airlines’ First Quarter Results Might Not Be Too Bad
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AAL
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https://www.nasdaq.com/articles/american-airlines-first-quarter-results-might-not-be-too-bad-2020-04-28
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
American Airlines (NASDAQ:AAL) reports first-quarter results April 30 before the markets open. They aren’t expected to be anything to write home about, especially for AAL stock.
Source: GagliardiPhotography / Shutterstock.com
That said, if I owned American Airlines stock, I’d be more concerned about the second-quarter numbers.
Here’s why.
Business Was Looking Good
The first thing to remember about Q1 2020 is that the first two months of the quarter (January and February) will likely be business as usual and reasonably decent. The final quarter in March is likely to be a lot bumpier.
7 Beautiful Biotech Stocks to Buy Here
In Q1 2019, American reported record first-quarter revenues of $10.6 billion with adjusted net earnings of 52 cents a share. Overall revenue in that quarter rose 1.8% year over year due to a strong showing from passenger travel.
The airline’s passenger revenue per available seat mile (PRASM) in last year’s first quarter grew 0.6% to 14.49 cents while total revenue per available seat mile (TRASM) rose 0.5% to 15.87 cents, a company record. Lastly, its load factor (defined as the percentage of seats filled by passengers) was 82.2%, 180 basis points higher than a year earlier. Both its mainline and regional business saw increases.
In January, American reported strong 2019 results with PRASM up 2.2% to 14.74 cents, TRASM was up 1.7% to 16.05 cents, and its load factor was 84.6%, 260 basis points higher.
If you didn’t know about the novel coronavirus and how it was wreaking havoc on the entire airline industry, you would probably be quite pumped for its earnings release, but unless you’ve been living underground, that’s just not the case.
How Bad Will March’s Numbers Be for AAL Stock?
Although January and February traffic was relatively normal, March saw slowing demand. Therefore, American’s unlikely to see year over year increases from Q1 2019 to Q1 2020.
Analysts expect that the airline’s load factor will be 80% in the first quarter. That’s 220 basis points less than in the same quarter a year earlier and 470 basis points less than Q4 2019. Unfortunately, that doesn’t take into account any weakness on the international front. As a result, the load factor could fall into the 70s.
In addition, American is expected to see an 11.1% decline in traffic count from the fourth quarter with PRASM falling by 8.1% compared to the fourth quarter to 13.53 cents and by 6.6% compared to Q1 2019.
From a revenue and earnings standpoint, American is expected to deliver $9.15 billion and a loss of $2.16 a share in the first quarter. That puts earnings and sales lower by 288% and 19%, respectively, over the fourth quarter and 515% and 14%, respectively, over the first quarter last year.
The Second Quarter Could Be What Really Hurts AAL Stock
According to Yahoo Finance, the current earnings estimate for the second quarter ended June 30, is a loss of $7.99, up by more than double from the $3.12 loss estimate from 30 days ago and $2.04 profit 60 days ago. On the revenue front, analysts expect sales of $2.08 billion, 83% lower than in Q2 2019.
The question investors have to ask themselves is: how much of this already baked into American’s stock price?
As I write this, it is down 61% for the year. In a normal situation, one might consider that a bottom is in given that it has mostly traded sideways since the mid-February to mid-March swoon most stocks went through, but these aren’t normal times.
The last time I wrote about American was in mid-March. At the time, I argued that AAL’s stock price was destined for single digits. It went there in early April but it’s since recovered.
“The smart play at this point is to wait for it to fall into single digits. The Trump administration may provide some financial assistance to get the airlines through the darkest days. That could give a lift,” I wrote on March 18.
“An even smarter play if you’re considering AAL stock is to buy Berkshire stock in its place. You get a diversified portfolio of public and private investments, including American Airlines.”
Honestly, I don’t see too much happening to its stock after earnings, good or bad. The real test is going to trading between May and early July when it reports its second-quarter results.
That’s when the rubber will hit the road. Until then, I’m not sure there are any catalysts to drive this stock higher. I guess we’ll soon find out.
Will Ashworth has written about investments full-time since 2008. Publications where he’s appeared include InvestorPlace, The Motley Fool Canada, Investopedia, Kiplinger, and several others in both the U.S. and Canada. He particularly enjoys creating model portfolios that stand the test of time. He lives in Halifax, Nova Scotia. At the time of this writing Will Ashworth did not hold a position in any of the aforementioned securities.
The post American Airlines’ First Quarter Results Might Not Be Too Bad appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips American Airlines (NASDAQ:AAL) reports first-quarter results April 30 before the markets open. They aren’t expected to be anything to write home about, especially for AAL stock. How Bad Will March’s Numbers Be for AAL Stock?
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips American Airlines (NASDAQ:AAL) reports first-quarter results April 30 before the markets open. They aren’t expected to be anything to write home about, especially for AAL stock. How Bad Will March’s Numbers Be for AAL Stock?
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips American Airlines (NASDAQ:AAL) reports first-quarter results April 30 before the markets open. The Second Quarter Could Be What Really Hurts AAL Stock According to Yahoo Finance, the current earnings estimate for the second quarter ended June 30, is a loss of $7.99, up by more than double from the $3.12 loss estimate from 30 days ago and $2.04 profit 60 days ago. They aren’t expected to be anything to write home about, especially for AAL stock.
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How Bad Will March’s Numbers Be for AAL Stock? InvestorPlace - Stock Market News, Stock Advice & Trading Tips American Airlines (NASDAQ:AAL) reports first-quarter results April 30 before the markets open. They aren’t expected to be anything to write home about, especially for AAL stock.
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6005.0
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2020-04-27 00:00:00 UTC
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Live Updates: Are Millennial Investors Wrong About American Airlines Stock?
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AAL
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https://www.nasdaq.com/articles/live-updates%3A-are-millennial-investors-wrong-about-american-airlines-stock-2020-04-27
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Source: GagliardiPhotography / Shutterstock.com
Welcome to InvestorPlace’s American Airlines (NASDAQ:AAL) live blog, where you can find up-to-the-second insights in AALstock newstoday.
[Check back often, as this page will be updated with more AALstock newsand insights each day the market is open.]
Are Millennials Wrong About AAL Stock?
[Monday, April 27, 9:46 a.m.]
AAL stock opened Monday at $10.40.
InvestorPlace’s Chris Markoch examines millennial investors’ love for AAL stock. He argues that millennials are bullish on American Airlines because they lead the experience economy and tend to focus on “buying the dip” in cheap stocks. But is AAL a good purchase?
Markoch doesn’t knock millennials for their experienced-focused spending. However, he worries that these investors are buying the dip in the wrong airline stock. Why? He just doesn’t like American Airlines’ rocky fundamentals.
American Airlines Embraces New Cargo-Only Flights
[Friday, April 24, 2:37 p.m.]
AAL stock is up 1% in intraday trading.
In a Thursday press release, American Airlines said it beat its previous record for freight volume, after it transported 115,000 pounds of seeds. American and other carriers recently increased cargo-only flights as passengers stopped buying tickets.
According to the press release, AAL is now running 46 weekly cargo flights. These trips connect the U.S. to Europe, Asia and Latin America.
Trump Says Government Should Start Buying Plane Tickets
[Friday, April 24, 2:12 p.m.]
AAL stock is up 2% in intraday trading, and share are climbing.
President Donald Trump just announced he thinks the government should buy airline tickets in bulk, at a huge discount, to give the carriers some cash. He recommended buying four or five years’ worth of tickets at a discount of 50%.
According to Bloomberg’s Jordan Fabian, this announcement immediately boosted airline stocks.
AAL Pilots: We Want All Passengers to Wear Masks
[Friday, April 24, 11:32 a.m.]
AAL stock is down 1.6% in intraday trading.
The Allied Pilots Association (APA), the labor union representing American Airlines pilots, says it wants “mandatory” personal protection equipment and priority testing for AAL crew members. It also says it wants all passengers to wear masks while on planes. The APA is working with other airline unions to lobby Congress for support.
Yesterday, the New York Post reported how one passenger took her concerns to social media when “half” a plane’s passengers were not wearing masks.
Here’s Why American Airlines Really Raised Its Bag Fees
[Friday, April 24, 10:42 a.m.]
AAL stock opened Friday at $10.40. Shares are down 1% in intraday trading.
We reported Wednesday that American Airlines raised its checked bag fees for trans-Atlantic flights. This was a really smart business move, according to Inc. contributing editor Jeff Haden.
Haden writes that such a price change would normally attract significant negative attention. With less people flying, American Airlines is likely to get away with it. When customers return to the sky, many will not remember what prices were before.
What Does the Future Hold for AAL and Its Peers?
[Thursday, April 23, 4:57 p.m.]
AAL stock closed lower by 0.19% on Thursday.
Bloomberg reported Monday that Dubai-based Emirates is imagining what its flights will look like as the airline begins to reopen. The plan includes removing middle seats, scrapping magazines and having plane personnel don personal protective equipment.
Morning Brew’s latest daily update included that report, and a bit more analysis. The writers posed the question — Onwards and Upwards? Perhaps reimagined flights are a good sign for struggling airlines. Investors should watch for a similar plan from American Airlines as the U.S. moves toward broader reopening.
American Airlines Stock Is Likely to Grind Lower
[Thursday, April 23, 3:34 p.m.]
AAL stock is up 0.6% in intraday trading.
InvestorPlace’s Faisal Humayun argues that airlines will face extreme hardship for at least the next six quarters. With that in mind, he thinks AAL stock is likely to grind lower, not head back up.
So what should investors do? Humayun argues it’s best to stay on the sidelines now. He sees credit downgrades in the near future, and those are likely to hurt the share price.
New York Post: American Airlines Boards a Packed Flight
[Thursday, April 23, 3:01 p.m.]
AAL stock is up 0.9% in intraday trading.
The New York Post reported Thursday that American Airlines boarded and flew a packed flight from Miami to New York’s LaGuardia airport on Wednesday. One woman shared her concerns on social media that half of the flight’s 150 passengers weren’t wearing masks.
In response, American Airlines said it is “running a business.” It also said gate agents will work to reassign seats in order to allow more space between passengers.
The Centers for Disease Control and Prevention does not mandate passengers wear a mask while on planes.
Young Investors Are Chasing AAL Stock
[Thursday, April 23, 1:45 p.m.]
AAL stock is up 2.3% in intraday trading.
InvestorPlace’s Luke Lango took a look Thursday at companies young investors were hot on in March. His data comes from Robinhood, the popular online trading platform. According to the CEO, American Airlines made a short list of stocks these young investors couldn’t get enough of.
Why? Lango argues that young investors likely believe air travel demand will rebound sharply once the pandemic eases. Plus, the government stepped in to bail out the airlines, clearing any risk of insolvency for AAL and its peers.
American Airlines Faces New Class-Action Lawsuit
[Thursday, April 23, 10:00 a.m.]
AAL stock opened at $10.36 Thursday and is up 1.2% in intraday trading.
According to attorneys from Hagens Berman, an American Airlines customer is suing the carrier in a class-action lawsuit over flights that were canceled without refunds.
Hagens Berman is already handling class-action lawsuits against United Airlines (NASDAQ:UAL) and Delta Air Lines (NYSE:DAL).
American Airlines Falls on Bad News from Peers
[Wednesday, April 22, 4:40 p.m.]
AAL shares closed down 6.6% on Wednesday.
InvestorPlace’s Bret Kenwell writes that American Airlines’ downward action can be blamed on peers Delta Air Lines (NYSE:DAL) and United Airlines (NASDAQ:UAL).
Delta reported earnings Wednesday, and investors didn’t like what they saw. The company says it is burning through $100 million in cash each day. United Airlines slipped 7% on news it was pricing a secondary offering of $1 billion to help its own cash burn problems.
AAL Launches Marketing Campaign Amid Controversy
[Wednesday, April 22, 2:20 p.m.]
AAL shares are down 7.2% in intraday trading.
Earlier this week, Kiera Feldman wrote for the Los Angeles Times that social commentators are asking why planes are still flying, particularly as those employed by airlines are dying from Covid-19. Among the recent deaths she lists is an unnamed American Airlines gate agent.
Whether in direct or indirect response, American Airlines released a new short film titled “You Are Why We Fly.” In it, employees emphasize that it is critical for planes to fly to get people home and deliver “life-saving equipment.” According to The Drum, the largest marketing website in Europe, this is the first time in four years American Airlines has relied on such brand-driven marketing.
AAL Stock Is Still Very Risky
[Wednesday, April 22, 1:10 p.m.]
AAL shares are down 6.3% in intraday trading.
InvestorPlace’s Wayne Duggan can’t deny that AAL stock looks “crazy cheap” here. But he also isn’t denying that it’s extremely risky, especially as the major carriers are likely to face long-lasting volatility. Right now, he thinks American and its peers will recover, but he’s not buying.
Instead, Duggan is looking at United Airlines (NASDAQ:UAL), which has a larger market capitalization and less debt.
American Airlines Sends $460,000 to UNICEF
[Wednesday, April 22, 12:20 p.m.]
American Airlines is sending $460,000 to UNICEF’s relief work in Argentina, Brazil, Costa Rica and Guatemala. The money will fund water, sanitation and hygiene items including personal protective equipment.
According to a press release from the company, American Airlines has been participating in UNICEF’s Change for Good program since 1994. Flight attendants collect money from passengers on international trips. The company collected $1.2 million for the program in 2019.
Investors Should Focus on Southwest, Not American
[Wednesday, April 22, 11:25 a.m.]
AAL stock is down 6.4% as of this writing.
InvestorPlace’s Ian Bezek isn’t bullish on AAL stock, even after the federal bailout. He writes that it was already a weaker name in the carrier space, and he doesn’t trust it to stay afloat. For investors, he says it’s “needlessly speculative.”
One stock in the airline space he does like is Southwest Airlines (NYSE:LUV). He writes Southwest has a solid balance sheet and looks to be the most secure airline right now.
American Airlines Raises Checked Bag Fees
[Wednesday, April 22, 10:45 a.m.]
As of April 21, American Airlines is raising checked bag fees for trans-Atlantic flights. For all new flights, the first checked bag will increase from $60 to $75.
One Mile at a Time reports that American Airlines is not raising checked bag fees yet for domestic flights, although JetBlue (NASDAQ:JBLU) and United Airlines (NASDAQ:UAL) have moved to do so.
These increased fees come as travel demand is at rock-bottom levels, and airlines are cutting capacity left and right. AAL stock is down 63% year-to-date.
Don’t Buy AAL Stock Just Yet
[Wednesday, April 22, 9:50 a.m.]
AAL shares opened at $11.09 today.
InvestorPlace’s Thomas Niel writes that many investors see AAL stock as a bottom-fishing opportunity, or even as a legitimate stock to buy now. Niel isn’t so sure, though. He’s worried about how long it will take airlines to recover, and how long it will take for demand to return to normal.
What’s his takeaway? Stay away for now, and take a wait-and-see approach. He’s particularly keen on shares between $5 and $10.
The post Live Updates: Are Millennial Investors Wrong About American Airlines Stock? appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Source: GagliardiPhotography / Shutterstock.com Welcome to InvestorPlace’s American Airlines (NASDAQ:AAL) live blog, where you can find up-to-the-second insights in AALstock newstoday. [Check back often, as this page will be updated with more AALstock newsand insights each day the market is open.] Are Millennials Wrong About AAL Stock?
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New York Post: American Airlines Boards a Packed Flight [Thursday, April 23, 3:01 p.m.] AAL stock is up 0.9% in intraday trading. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Source: GagliardiPhotography / Shutterstock.com Welcome to InvestorPlace’s American Airlines (NASDAQ:AAL) live blog, where you can find up-to-the-second insights in AALstock newstoday. [Check back often, as this page will be updated with more AALstock newsand insights each day the market is open.]
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American Airlines Stock Is Likely to Grind Lower [Thursday, April 23, 3:34 p.m.] AAL stock is up 0.6% in intraday trading. New York Post: American Airlines Boards a Packed Flight [Thursday, April 23, 3:01 p.m.] AAL stock is up 0.9% in intraday trading. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Source: GagliardiPhotography / Shutterstock.com Welcome to InvestorPlace’s American Airlines (NASDAQ:AAL) live blog, where you can find up-to-the-second insights in AALstock newstoday.
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Investors Should Focus on Southwest, Not American [Wednesday, April 22, 11:25 a.m.] AAL stock is down 6.4% as of this writing. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Source: GagliardiPhotography / Shutterstock.com Welcome to InvestorPlace’s American Airlines (NASDAQ:AAL) live blog, where you can find up-to-the-second insights in AALstock newstoday. [Check back often, as this page will be updated with more AALstock newsand insights each day the market is open.]
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6006.0
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2020-04-27 00:00:00 UTC
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De Beers' Namibia diamond venture boosts output by nearly 6% in Q1
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AAL
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https://www.nasdaq.com/articles/de-beers-namibia-diamond-venture-boosts-output-by-nearly-6-in-q1-2020-04-27
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WINDHOEK, April 27 (Reuters) - De Beers' Namibia joint venture, Namdeb, increased diamond production by 5.8% in the first quarter from a year earlier, according to data from De Beers' parent Anglo American AAL.L.
Mining in Namibia was not disrupted by the global coronavirus pandemic in the first quarter, as the country only went into partial lockdown on March 27, although De Beers Group cancelled a sales event owing to the lockdown.
Before the outbreak of the virus, which has so far infected 16 people in the sparsely populated African nation, diamond mining was touted as one of the drivers of the expected economic recovery. However, the Bankers Association of Namibia and the Economic Association of Namibia both now expect diamond mining to contract by 7.5% or 700 million Namibia dollars in 2020.
Namdeb, a joint venture between the Namibian government and De Beers Group, produced 511,000 carats in the first quarter, 28,000 carats more than the same three months of 2019, Anglo American's latest figures show, and a 12% increase on the previous quarter.
De Beers, which also owns diamond mines in Botswana, South Africa and Canada, produced 7.75 million carats in total in the first quarter of 2020, down 1% year-on-year, the data showed.
The bulk of Namdeb Holdings' first quarter production came from Debmarine Namibia, its sea mining operation, which delivered 417,000 carats in January-March, up 15% year-on-year and quarter-on-quarter.
Anglo America expects a tough year for diamonds in its latest production report.
"In response to the impact of Covid-19 on mining operations ... production guidance has been revised to 25-27 million carats (from 32-34 million carats), subject to the timing and scale of the recovery in trading conditions," Anglo said.
(Reporting by Nyasha Nyaungwa Editing by Tim Cocks and Susan Fenton)
((tim.cocks@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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WINDHOEK, April 27 (Reuters) - De Beers' Namibia joint venture, Namdeb, increased diamond production by 5.8% in the first quarter from a year earlier, according to data from De Beers' parent Anglo American AAL.L. Before the outbreak of the virus, which has so far infected 16 people in the sparsely populated African nation, diamond mining was touted as one of the drivers of the expected economic recovery. De Beers, which also owns diamond mines in Botswana, South Africa and Canada, produced 7.75 million carats in total in the first quarter of 2020, down 1% year-on-year, the data showed.
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WINDHOEK, April 27 (Reuters) - De Beers' Namibia joint venture, Namdeb, increased diamond production by 5.8% in the first quarter from a year earlier, according to data from De Beers' parent Anglo American AAL.L. However, the Bankers Association of Namibia and the Economic Association of Namibia both now expect diamond mining to contract by 7.5% or 700 million Namibia dollars in 2020. Namdeb, a joint venture between the Namibian government and De Beers Group, produced 511,000 carats in the first quarter, 28,000 carats more than the same three months of 2019, Anglo American's latest figures show, and a 12% increase on the previous quarter.
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WINDHOEK, April 27 (Reuters) - De Beers' Namibia joint venture, Namdeb, increased diamond production by 5.8% in the first quarter from a year earlier, according to data from De Beers' parent Anglo American AAL.L. Namdeb, a joint venture between the Namibian government and De Beers Group, produced 511,000 carats in the first quarter, 28,000 carats more than the same three months of 2019, Anglo American's latest figures show, and a 12% increase on the previous quarter. De Beers, which also owns diamond mines in Botswana, South Africa and Canada, produced 7.75 million carats in total in the first quarter of 2020, down 1% year-on-year, the data showed.
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WINDHOEK, April 27 (Reuters) - De Beers' Namibia joint venture, Namdeb, increased diamond production by 5.8% in the first quarter from a year earlier, according to data from De Beers' parent Anglo American AAL.L. Mining in Namibia was not disrupted by the global coronavirus pandemic in the first quarter, as the country only went into partial lockdown on March 27, although De Beers Group cancelled a sales event owing to the lockdown. Namdeb, a joint venture between the Namibian government and De Beers Group, produced 511,000 carats in the first quarter, 28,000 carats more than the same three months of 2019, Anglo American's latest figures show, and a 12% increase on the previous quarter.
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6007.0
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2020-04-27 00:00:00 UTC
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Buffett and Abel, but not Munger, to field questions at Berkshire annual meeting
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AAL
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https://www.nasdaq.com/articles/buffett-and-abel-but-not-munger-to-field-questions-at-berkshire-annual-meeting-2020-04-27
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nan
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April 27 (Reuters) - Warren Buffett's Berkshire Hathaway Inc BRKa.N will hold a truncated virtual annual meeting on Saturday where its billionaire chairman will be present but his longtime Vice Chairman Charlie Munger will not.
Berkshire said on Monday that Buffett, 89, and Vice Chairman Greg Abel, 57, will be physically present to answer shareholder questions at the afternoon meeting, but other directors including Munger and Vice Chairman Ajit Jain will be absent.
The meeting is normally part of a weekend of festive events that draws more than 40,000 people to Omaha, Nebraska, where Berkshire is based, but the coronavirus pandemic forced Berkshire to scrap those events and keep shareholders away.
Many Berkshire directors live far from Omaha, including Munger, 96, and Jain, 68.
Abel oversees Berkshire's non-insurance operating businesses such as the BNSF railroad and Dairy Queen ice cream, while Jain oversees insurance businesses such as the Geico auto insurer.
In past years, Munger has joined Buffett on the stage of a downtown Omaha arena to answer five hours of shareholder questions. Abel and Jain also fielded some questions last year.
Buffett and Abel will not be given this year's questions in advance, a policy Berkshire has long maintained.
They may be asked about how the pandemic has affected Berkshire, markets, the economy and Buffett's long-term outlook, and how and when Berkshire plans to spend its cash hoard, which totaled $128 billion as of Dec. 31.
Berkshire is also scheduled on Saturday morning to release first-quarter results.
While many operating businesses should be profitable, Berkshire will likely post a huge net loss because of unrealized losses on stock investments such as Bank of America BAC.N and the four largest U.S. airlines.
Buffett has long said quarterly investment gains and losses are usually meaningless, and investors should focus on Berkshire's operating results.
Munger told The Wall Street Journal this month that the pandemic will cause Berkshire to close a few small businesses.
The annual meeting will be streamed live on Yahoo Finance.
(Reporting by Jonathan Stempel in New York Editing by Nick Zieminski)
((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.
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In past years, Munger has joined Buffett on the stage of a downtown Omaha arena to answer five hours of shareholder questions. Buffett has long said quarterly investment gains and losses are usually meaningless, and investors should focus on Berkshire's operating results. Munger told The Wall Street Journal this month that the pandemic will cause Berkshire to close a few small businesses.
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Berkshire said on Monday that Buffett, 89, and Vice Chairman Greg Abel, 57, will be physically present to answer shareholder questions at the afternoon meeting, but other directors including Munger and Vice Chairman Ajit Jain will be absent. Many Berkshire directors live far from Omaha, including Munger, 96, and Jain, 68. Abel oversees Berkshire's non-insurance operating businesses such as the BNSF railroad and Dairy Queen ice cream, while Jain oversees insurance businesses such as the Geico auto insurer.
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April 27 (Reuters) - Warren Buffett's Berkshire Hathaway Inc BRKa.N will hold a truncated virtual annual meeting on Saturday where its billionaire chairman will be present but his longtime Vice Chairman Charlie Munger will not. Berkshire said on Monday that Buffett, 89, and Vice Chairman Greg Abel, 57, will be physically present to answer shareholder questions at the afternoon meeting, but other directors including Munger and Vice Chairman Ajit Jain will be absent. The meeting is normally part of a weekend of festive events that draws more than 40,000 people to Omaha, Nebraska, where Berkshire is based, but the coronavirus pandemic forced Berkshire to scrap those events and keep shareholders away.
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Berkshire said on Monday that Buffett, 89, and Vice Chairman Greg Abel, 57, will be physically present to answer shareholder questions at the afternoon meeting, but other directors including Munger and Vice Chairman Ajit Jain will be absent. Many Berkshire directors live far from Omaha, including Munger, 96, and Jain, 68. Buffett has long said quarterly investment gains and losses are usually meaningless, and investors should focus on Berkshire's operating results.
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6008.0
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2020-04-27 00:00:00 UTC
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American Airlines mandates masks for flight attendants
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AAL
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https://www.nasdaq.com/articles/american-airlines-mandates-masks-for-flight-attendants-2020-04-27
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nan
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nan
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April 27 (Reuters) - American Airlines Group Inc AAL.O on Monday mandated its flight attendants to wear masks starting May 1, and announced enhanced cleaning procedures in response to the COVID-19 pandemic.
Customer and staff areas including tray tables, seatbelt buckles, jump seats and crew rest seats would be cleaned using a disinfectant approved by the Environmental Protection Agency (EPA), starting this week, the company said.
Customers will be provided sanitizing wipes or gels and face masks starting early May, the company added. (https://bit.ly/3bDVMaZ)
Peer United Airlines last week mandated its flight attendants to wear a face covering or a mask while on duty and was one of the first major U.S. carriers to make such a requirement.
(Reporting by Bharath Manjesh in Bengaluru; Editing by Vinay Dwivedi)
((Bharath.ManjeshR@thomsonreuters.com; outside U.S. +91 80 6749 2703;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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April 27 (Reuters) - American Airlines Group Inc AAL.O on Monday mandated its flight attendants to wear masks starting May 1, and announced enhanced cleaning procedures in response to the COVID-19 pandemic. Customers will be provided sanitizing wipes or gels and face masks starting early May, the company added. (https://bit.ly/3bDVMaZ) Peer United Airlines last week mandated its flight attendants to wear a face covering or a mask while on duty and was one of the first major U.S. carriers to make such a requirement.
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April 27 (Reuters) - American Airlines Group Inc AAL.O on Monday mandated its flight attendants to wear masks starting May 1, and announced enhanced cleaning procedures in response to the COVID-19 pandemic. Customers will be provided sanitizing wipes or gels and face masks starting early May, the company added. (https://bit.ly/3bDVMaZ) Peer United Airlines last week mandated its flight attendants to wear a face covering or a mask while on duty and was one of the first major U.S. carriers to make such a requirement.
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April 27 (Reuters) - American Airlines Group Inc AAL.O on Monday mandated its flight attendants to wear masks starting May 1, and announced enhanced cleaning procedures in response to the COVID-19 pandemic. Customer and staff areas including tray tables, seatbelt buckles, jump seats and crew rest seats would be cleaned using a disinfectant approved by the Environmental Protection Agency (EPA), starting this week, the company said. (https://bit.ly/3bDVMaZ) Peer United Airlines last week mandated its flight attendants to wear a face covering or a mask while on duty and was one of the first major U.S. carriers to make such a requirement.
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April 27 (Reuters) - American Airlines Group Inc AAL.O on Monday mandated its flight attendants to wear masks starting May 1, and announced enhanced cleaning procedures in response to the COVID-19 pandemic. Customer and staff areas including tray tables, seatbelt buckles, jump seats and crew rest seats would be cleaned using a disinfectant approved by the Environmental Protection Agency (EPA), starting this week, the company said. Customers will be provided sanitizing wipes or gels and face masks starting early May, the company added.
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6009.0
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2020-04-25 00:00:00 UTC
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U.S. airlines receive extra $9.5 bln in payroll support - U.S. Treasury
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AAL
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https://www.nasdaq.com/articles/u.s.-airlines-receive-extra-%249.5-bln-in-payroll-support-u.s.-treasury-2020-04-25
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nan
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By Jonathan Landay and David Shepardson
WASHINGTON, April 25 (Reuters) - The U.S. Treasury Department said on Saturday it has released $9.5 billion in additional funds from the Payroll Support Program to U.S. air carriers, bringing to $12.4 billion the total provided to the airline sector hit hard by the coronavirus pandemic.
In total, the government has disbursed grant funds to 10 major airlines and 83 smaller carriers.
Congress approved $25 billion in grants for payroll assistance for passenger airlines. Treasury required major airlines receiving more than $100 million in assistance to repay 30% in low-interest loans over 10 years and issue warrants equal to 10% of the loan amount.
Airlines must not cut pay or jobs through Sept. 30 as a condition of the grants and are barred from buying back stock or paying dividends and face restrictions on executive compensation.
SkyWest Inc SKYW.O Chief Executive Chip Childs told employees on Friday the airline expects to receive $438 million from Treasury in payroll assistance.
"There is still much about the future and recovery that remains uncertain, and there is a very real possibility that we could be a smaller airline by the end of the year," he wrote in a email seen by Reuters.
The four largest U.S. carriers are receiving $19.2 billion in total out of the $25 billion - American Airlines Group Inc AAL.O, Delta Air Lines Inc DAL.N, United Airlines Holdings Inc UAL.O and Southwest Airlines Co LUV.N.
Treasury is awarding major carriers 50% of the grant funds initially and then releasing the remainder through July.
Treasury said additional money will continue to be provided to approved applicants "on a rolling basis."
The department is still reviewing how to award $4 billion in grants to cargo carriers and $3 billion to airport contractors such as caterers.
Cargo carriers that receive $50 million or less of payroll support and contractors that receive $37.5 million or less "will not be required to provide financial instruments as appropriate compensation" for support, the department said.
The Treasury Department also published on Saturday the application form for companies deemed critical to maintaining national security seeking loans from a $17 billion fund.
The fund has been mentioned as a potential source of funds for Boeing Co BA.N, which declined to say on Friday whether it would apply. Treasury said it wants companies to apply by May 1.
Treasury has an additional $25 billion in loans it can award to passenger airlines and $4 billion in cargo loans. Some airlines, including American, Delta and Alaska Airlines ALK.N, have already applied.
Airlines may still need more money as U.S. air travel demand has fallen by 95% and shows no sign of improving.
On Friday, President Donald Trump said the U.S. government could pre-buy airplane tickets at a steep discount of 50% or more for travel for the next four or five years. "You infuse them with some cash. And in the meantime, we're flying the people of our country for ... a fraction of the cost," he said.
Airlines for America, a trade group representing major U.S. airlines, declined to comment.
(Reporting by Jonathan Landay and David Shepardson; Editing by Chizu Nomiyama, Marguerita Choy and Daniel Wallis)
((Jonathan.Landay@thomsonreuters.com; +1 202-354-5885;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The four largest U.S. carriers are receiving $19.2 billion in total out of the $25 billion - American Airlines Group Inc AAL.O, Delta Air Lines Inc DAL.N, United Airlines Holdings Inc UAL.O and Southwest Airlines Co LUV.N. SkyWest Inc SKYW.O Chief Executive Chip Childs told employees on Friday the airline expects to receive $438 million from Treasury in payroll assistance. "There is still much about the future and recovery that remains uncertain, and there is a very real possibility that we could be a smaller airline by the end of the year," he wrote in a email seen by Reuters.
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The four largest U.S. carriers are receiving $19.2 billion in total out of the $25 billion - American Airlines Group Inc AAL.O, Delta Air Lines Inc DAL.N, United Airlines Holdings Inc UAL.O and Southwest Airlines Co LUV.N. By Jonathan Landay and David Shepardson WASHINGTON, April 25 (Reuters) - The U.S. Treasury Department said on Saturday it has released $9.5 billion in additional funds from the Payroll Support Program to U.S. air carriers, bringing to $12.4 billion the total provided to the airline sector hit hard by the coronavirus pandemic. Treasury has an additional $25 billion in loans it can award to passenger airlines and $4 billion in cargo loans.
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The four largest U.S. carriers are receiving $19.2 billion in total out of the $25 billion - American Airlines Group Inc AAL.O, Delta Air Lines Inc DAL.N, United Airlines Holdings Inc UAL.O and Southwest Airlines Co LUV.N. By Jonathan Landay and David Shepardson WASHINGTON, April 25 (Reuters) - The U.S. Treasury Department said on Saturday it has released $9.5 billion in additional funds from the Payroll Support Program to U.S. air carriers, bringing to $12.4 billion the total provided to the airline sector hit hard by the coronavirus pandemic. Treasury has an additional $25 billion in loans it can award to passenger airlines and $4 billion in cargo loans.
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The four largest U.S. carriers are receiving $19.2 billion in total out of the $25 billion - American Airlines Group Inc AAL.O, Delta Air Lines Inc DAL.N, United Airlines Holdings Inc UAL.O and Southwest Airlines Co LUV.N. By Jonathan Landay and David Shepardson WASHINGTON, April 25 (Reuters) - The U.S. Treasury Department said on Saturday it has released $9.5 billion in additional funds from the Payroll Support Program to U.S. air carriers, bringing to $12.4 billion the total provided to the airline sector hit hard by the coronavirus pandemic. In total, the government has disbursed grant funds to 10 major airlines and 83 smaller carriers.
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6010.0
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2020-04-24 00:00:00 UTC
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First Week of AAL June 5th Options Trading
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AAL
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https://www.nasdaq.com/articles/first-week-of-aal-june-5th-options-trading-2020-04-24
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nan
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nan
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Investors in American Airlines Group Inc (Symbol: AAL) saw new options begin trading this week, for the June 5th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new June 5th contracts and identified one put and one call contract of particular interest.
The put contract at the $6.00 strike price has a current bid of 10 cents. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $6.00, but will also collect the premium, putting the cost basis of the shares at $5.90 (before broker commissions). To an investor already interested in purchasing shares of AAL, that could represent an attractive alternative to paying $10.21/share today.
Because the $6.00 strike represents an approximate 41% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 1.67% return on the cash commitment, or 14.48% annualized — at Stock Options Channel we call this the YieldBoost.
Below is a chart showing the trailing twelve month trading history for American Airlines Group Inc, and highlighting in green where the $6.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $13.50 strike price has a current bid of 50 cents. If an investor was to purchase shares of AAL stock at the current price level of $10.21/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $13.50. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 37.12% if the stock gets called away at the June 5th expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if AAL shares really soar, which is why looking at the trailing twelve month trading history for American Airlines Group Inc, as well as studying the business fundamentals becomes important. Below is a chart showing AAL's trailing twelve month trading history, with the $13.50 strike highlighted in red:
Considering the fact that the $13.50 strike represents an approximate 32% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 84%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 4.90% boost of extra return to the investor, or 42.56% annualized, which we refer to as the YieldBoost.
The implied volatility in the put contract example is 182%, while the implied volatility in the call contract example is 146%.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 252 trading day closing values as well as today's price of $10.21) to be 75%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Top YieldBoost Calls of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Of course, a lot of upside could potentially be left on the table if AAL shares really soar, which is why looking at the trailing twelve month trading history for American Airlines Group Inc, as well as studying the business fundamentals becomes important. Below is a chart showing AAL's trailing twelve month trading history, with the $13.50 strike highlighted in red: Considering the fact that the $13.50 strike represents an approximate 32% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in American Airlines Group Inc (Symbol: AAL) saw new options begin trading this week, for the June 5th expiration.
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Below is a chart showing AAL's trailing twelve month trading history, with the $13.50 strike highlighted in red: Considering the fact that the $13.50 strike represents an approximate 32% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in American Airlines Group Inc (Symbol: AAL) saw new options begin trading this week, for the June 5th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new June 5th contracts and identified one put and one call contract of particular interest.
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Below is a chart showing AAL's trailing twelve month trading history, with the $13.50 strike highlighted in red: Considering the fact that the $13.50 strike represents an approximate 32% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in American Airlines Group Inc (Symbol: AAL) saw new options begin trading this week, for the June 5th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new June 5th contracts and identified one put and one call contract of particular interest.
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At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new June 5th contracts and identified one put and one call contract of particular interest. Below is a chart showing AAL's trailing twelve month trading history, with the $13.50 strike highlighted in red: Considering the fact that the $13.50 strike represents an approximate 32% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in American Airlines Group Inc (Symbol: AAL) saw new options begin trading this week, for the June 5th expiration.
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6011.0
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2020-04-23 00:00:00 UTC
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3 Warren Buffett Stocks to Avoid at All Costs
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AAL
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https://www.nasdaq.com/articles/3-warren-buffett-stocks-to-avoid-at-all-costs-2020-04-23
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nan
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nan
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While debatable, there's probably not a more revered investor than Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) CEO Warren Buffett. Having begun with $10,000 in seed capital in the 1950s, Buffett has built his net worth to almost $75 billion, which doesn't include the tens of billions he's graciously donated to philanthropic ventures over the years.
His actions have also helped create almost $400 billion in value for Berkshire Hathaway's shareholders. Since 1965, Berkshire's per-share market value has increased by 20.3% on a compound annual basis (more than double the 10% compound annual return of the S&P 500, inclusive of dividends, over the same time frame), leading to an aggregate return of more than 2,744,000% through 2019.
But even the greatest buy-and-hold investor on the planet occasionally picks a dud. While many of the 52 securities in Berkshire Hathaway's portfolio look like long-term winners, three Warren Buffett stocks look as if they should be avoided at all costs.
Berkshire Hathaway CEO Warren Buffett at his company's annual shareholder meeting. Image source: The Motley Fool.
American Airlines Group
If I were to rank Buffett's 52 holdings from "buy now" to "avoid like the plague," American Airlines Group (NASDAQ: AAL) would be in its own ZIP code of avoidance.
Although crude oil was exceptionally cheap in 2016, when Buffett initially took his stake in American Airlines, I never quite understood his interest in the airline industry. Although American has been buying back its stock, which is a corporate trait Buffett has long been a fan of, he has also been highly critical of the airline industry in the past. In particular, he has implied that it's an industry with high input costs that tends to generate very low margins. It's also an industry that struggles mightily anytime there's even a hint of recession, making airline stocks a poor long-term hold.
What makes American Airlines the worst of the worst is the company's debt load. As my airline-focused Motley Fool colleague Adam Levine-Weinberg has pointed out, American wound up replacing its fleet with new planes far earlier than it needed to, and in the process ballooned its debt. Even with federal stimulus package assistance, American Airlines is lugging around close to $30 billion in net debt with no clear picture of when traditional air travel will resume.
Furthermore, with share buybacks and future dividend payments suspended, perhaps the only reason to even consider owning American Airlines Group has been removed. This is absolutely a Buffett stock to avoid.
The Oscar Mayer Wienermobile. Image source: Kraft Heinz.
Kraft Heinz
On a year-to-date basis, packaged food and beverage company Kraft Heinz (NASDAQ: KHC) has actually outperformed the broader market by losing only 10%, inclusive of dividends paid. But this is also a company that's shed 70% of its value over the trailing three years and has given no indication to Wall Street that it's near a turnaround.
The biggest issue for Kraft Heinz is the company's balance sheet, which is an absolute mess. There's no question at this point that Heinz grossly overpaid for Kraft Foods, and the company is now facing the repercussions of that overpayment. In February 2019, Kraft Heinz wound up writing down more than $15 billion in goodwill and intangible assets tied to a number of its brands.
But this writedown didn't clear up its balance sheet -- it merely took it a few steps in the right direction. Of the company's $101.5 billion in total assets at the end of 2019, intangible assets accounted for $48.7 billion, with another $35.5 billion in goodwill. That compares to just $2.3 billion in cash and cash equivalents and a whopping $29-billion-plus in long-term debt.
The point of these figures is to show that Kraft Heinz has virtually no financial flexibility to turn around its struggling business. The company could choose to divest some of its brands to raise capital and reduce its debt load, but the market for packaged-good divestments hasn't been that strong over the past year.
With sales growth expected to remain flat or down slightly in the years to come, Kraft Heinz's only recourse is to cut expenses and/or sell off noncore brands. That's a strategy built on finger-crossing, not strength.
Image source: Getty Images.
Occidental Petroleum
Lastly, one of Buffett's more recent bets in the oil industry, Occidental Petroleum (NYSE: OXY), looks like an absolute train wreck that investors will want to avoid.
Last year, Buffett wound up supplying $10 billion to Occidental to sweeten its takeover bid for Anadarko. In return for this $10 billion investment, his company received preferred shares of Occidental stock that yield 8%, as well as warrants to purchase up to 80 million shares of Occidental common stock at $62.50 a share. It looked like a killer deal at the time, especially with Occidental Petroleum planning to sell some of its noncore assets to reduce its debt load.
Then COVID-19 hit, and everything we though we knew about the oil industry was tossed out the window.
Thus far in 2020, Occidental has slashed its capital expenditure budget twice, with the newest range of $2.7 billion to $2.9 billion nearly half of the $5.2 billion to $5.4 billion it planned to spend this year. The company's dividend has also been cut by 86%, and Occidental was forced to pay Berkshire Hathaway's 8% yield in common stock (as opposed to cash) in the most recent quarter. By issuing stock to make good on its interest payments to Berkshire Hathaway, Occidental will be consistently diluting existing shareholders.
To make matters worse, Occidental ended the previous quarter with $41 billion in debt (about $38 billion in net debt), and it could see a number of planned asset sales fall through given the disruption we've witnessed in the oil market. There are far too many questions and not enough answers, making this stock easily avoidable by investors.
10 stocks we like better than Occidental Petroleum
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Sean Williams has no position in any of the stocks mentioned. 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.
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American Airlines Group If I were to rank Buffett's 52 holdings from "buy now" to "avoid like the plague," American Airlines Group (NASDAQ: AAL) would be in its own ZIP code of avoidance. As my airline-focused Motley Fool colleague Adam Levine-Weinberg has pointed out, American wound up replacing its fleet with new planes far earlier than it needed to, and in the process ballooned its debt. Even with federal stimulus package assistance, American Airlines is lugging around close to $30 billion in net debt with no clear picture of when traditional air travel will resume.
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American Airlines Group If I were to rank Buffett's 52 holdings from "buy now" to "avoid like the plague," American Airlines Group (NASDAQ: AAL) would be in its own ZIP code of avoidance. While debatable, there's probably not a more revered investor than Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) CEO Warren Buffett. Berkshire Hathaway CEO Warren Buffett at his company's annual shareholder meeting.
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American Airlines Group If I were to rank Buffett's 52 holdings from "buy now" to "avoid like the plague," American Airlines Group (NASDAQ: AAL) would be in its own ZIP code of avoidance. In return for this $10 billion investment, his company received preferred shares of Occidental stock that yield 8%, as well as warrants to purchase up to 80 million shares of Occidental common stock at $62.50 a share. Thus far in 2020, Occidental has slashed its capital expenditure budget twice, with the newest range of $2.7 billion to $2.9 billion nearly half of the $5.2 billion to $5.4 billion it planned to spend this year.
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American Airlines Group If I were to rank Buffett's 52 holdings from "buy now" to "avoid like the plague," American Airlines Group (NASDAQ: AAL) would be in its own ZIP code of avoidance. Having begun with $10,000 in seed capital in the 1950s, Buffett has built his net worth to almost $75 billion, which doesn't include the tens of billions he's graciously donated to philanthropic ventures over the years. While many of the 52 securities in Berkshire Hathaway's portfolio look like long-term winners, three Warren Buffett stocks look as if they should be avoided at all costs.
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6012.0
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2020-04-23 00:00:00 UTC
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UK Stocks-Factors to watch on April 23
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AAL
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https://www.nasdaq.com/articles/uk-stocks-factors-to-watch-on-april-23-2020-04-23
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nan
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April 23 (Reuters) - Britain's FTSE 100 .FTSE index is seen opening 25 points lower at 5,746 on Thursday, according to financial bookmakers.
* ROYAL DUTCH SHELL: Royal Dutch Shell RDSa.L has postponed decisions on whether to go ahead with two large oil and gas developments in the Gulf of Mexico and North Sea after oil prices collapsed due to the coronavirus crisis, a company source said on Wednesday.
* Currency service provider Travelex [RIC:RIC:TFPI.UL] has put itself up for sale, the London-based company said on Wednesday, a month after parent Finablr warned that it was preparing for a potential insolvency.
* Telecom Italia (TIM) and Vodafone VOD.L said on Wednesday they had agreed to launch the sale of an 8% stake in Italy's biggest mobile tower company INWIT on a pro-rata basis as part of their efforts to cut debt.
* GOLD: Gold eased on Thursday as investors booked profits from a near 2% rally in the previous session, while U.S. stimulus measures to ease the economic blow from the coronavirus outbreak limited losses and kept prices above $1,700 an ounce.
* OIL: Oil extended gains on Thursday amid signs that producers are cutting production to cope with a collapse in demand for fuel as the coronavirus outbreak ravages the world's economies.
* EX-DIVS: Intercontinental Hotels IHG.L, Mondi MNDI.L, Melrose MRON.L, Phoenix Group Holdings PHNX.L, Standard Life Aberdeen SLA.L, Smith & Nephew SN.L and Taylor Wimpey will trade without entitlement to its latest dividend pay-out on Thursday, trimming 5.05 points off the FTSE 100 according to Reuters calculations. .L/XD
* The UK blue-chip index .FTSE closed up 2.3% on Wednesday a 6% rally in energy majors BP and Royal Dutch Shell and positive corporate updates injected calm into equity markets after an oil-driven rout.
* UK CORPORATE DIARY:
NMCN Plc
NMCN.L
FY 2019 earnings release
RDI Reit Plc
RDI.L
HY 2020 earnings release
Luceco Plc
LUCEL.L
FY 2019 earnings release
Alfa Financial Software
ALFAAL.L
FY 2019 earnings release
Anglo American Plc
AAL.L
Q1 2020 production report
Meggitt Plc
MGGT.L
Q1 2020 trading statement
MPH SE
MGPCq.L
Q1 2020 pre-close trading statement
Unilever Plc
ULVR.L
Q1 2020 trading statement
Relx Plc
REL.L
Q1 2020 trading statement
Taylor Wimpey
TW.L
Trading statement
Tullow Oil
TLW.L
Trading statement
* For more on the factors affecting European stocks, please click on: LIVE/
TODAY'S UK PAPERS > Financial Times PRESS/FT > Other business headlines PRESS/GB
(Reporting by Samantha Machado in Bengaluru)
((Samantha.machado@thomsonreuters.com; Within UK +44 20 7542 1810; Outside UK +918061822699; Twitter: https://twitter.com/SamanthaM_TR;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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* Telecom Italia (TIM) and Vodafone VOD.L said on Wednesday they had agreed to launch the sale of an 8% stake in Italy's biggest mobile tower company INWIT on a pro-rata basis as part of their efforts to cut debt. * EX-DIVS: Intercontinental Hotels IHG.L, Mondi MNDI.L, Melrose MRON.L, Phoenix Group Holdings PHNX.L, Standard Life Aberdeen SLA.L, Smith & Nephew SN.L and Taylor Wimpey will trade without entitlement to its latest dividend pay-out on Thursday, trimming 5.05 points off the FTSE 100 according to Reuters calculations. .L/XD * The UK blue-chip index .FTSE closed up 2.3% on Wednesday a 6% rally in energy majors BP and Royal Dutch Shell and positive corporate updates injected calm into equity markets after an oil-driven rout.
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* ROYAL DUTCH SHELL: Royal Dutch Shell RDSa.L has postponed decisions on whether to go ahead with two large oil and gas developments in the Gulf of Mexico and North Sea after oil prices collapsed due to the coronavirus crisis, a company source said on Wednesday. * GOLD: Gold eased on Thursday as investors booked profits from a near 2% rally in the previous session, while U.S. stimulus measures to ease the economic blow from the coronavirus outbreak limited losses and kept prices above $1,700 an ounce. Q1 2020 trading statement Taylor Wimpey
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* ROYAL DUTCH SHELL: Royal Dutch Shell RDSa.L has postponed decisions on whether to go ahead with two large oil and gas developments in the Gulf of Mexico and North Sea after oil prices collapsed due to the coronavirus crisis, a company source said on Wednesday. Q1 2020 trading statement Relx Plc Trading statement * For more on the factors affecting European stocks, please click on: LIVE/ TODAY'S UK PAPERS > Financial Times PRESS/FT > Other business headlines PRESS/GB (Reporting by Samantha Machado in Bengaluru) ((Samantha.machado@thomsonreuters.com; Within UK +44 20 7542 1810; Outside UK +918061822699; Twitter: https://twitter.com/SamanthaM_TR;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Q1 2020 trading statement Q1 2020 trading statement Relx Plc Trading statement Tullow Oil
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6013.0
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2020-04-23 00:00:00 UTC
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Anglo American says cuts capex on coronavirus as it posts lower Q1 production
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AAL
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https://www.nasdaq.com/articles/anglo-american-says-cuts-capex-on-coronavirus-as-it-posts-lower-q1-production-2020-04-23
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LONDON, April 23 (Reuters) - Global miner Anglo American said on Thursday slashed its capital expenditure guidance for the year by about $1 billion and warned of delays some projects due to coronavirus.
The London-listed miner said overall production in its first quarter fell by 4% mainly due to lockdown measures.
(Reporting by Zandi Shabalala; Editing by Toby Chopra)
((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.
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LONDON, April 23 (Reuters) - Global miner Anglo American said on Thursday slashed its capital expenditure guidance for the year by about $1 billion and warned of delays some projects due to coronavirus. The London-listed miner said overall production in its first quarter fell by 4% mainly due to lockdown measures. (Reporting by Zandi Shabalala; Editing by Toby Chopra) ((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.
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LONDON, April 23 (Reuters) - Global miner Anglo American said on Thursday slashed its capital expenditure guidance for the year by about $1 billion and warned of delays some projects due to coronavirus. The London-listed miner said overall production in its first quarter fell by 4% mainly due to lockdown measures. (Reporting by Zandi Shabalala; Editing by Toby Chopra) ((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.
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LONDON, April 23 (Reuters) - Global miner Anglo American said on Thursday slashed its capital expenditure guidance for the year by about $1 billion and warned of delays some projects due to coronavirus. The London-listed miner said overall production in its first quarter fell by 4% mainly due to lockdown measures. (Reporting by Zandi Shabalala; Editing by Toby Chopra) ((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.
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LONDON, April 23 (Reuters) - Global miner Anglo American said on Thursday slashed its capital expenditure guidance for the year by about $1 billion and warned of delays some projects due to coronavirus. The London-listed miner said overall production in its first quarter fell by 4% mainly due to lockdown measures. (Reporting by Zandi Shabalala; Editing by Toby Chopra) ((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.
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6014.0
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2020-04-23 00:00:00 UTC
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Anglo American says cuts capex on coronavirus as it posts lower Q1 production
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AAL
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https://www.nasdaq.com/articles/anglo-american-says-cuts-capex-on-coronavirus-as-it-posts-lower-q1-production-2020-04-23-0
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nan
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Adds detail
LONDON, April 23 (Reuters) - Global miner Anglo American said on Thursday slashed its capital expenditure guidance for the year by about $1 billion and warned of delays some projects due to coronavirus.
The London-listed miner said overall production in its first quarter fell by 4% mainly due to lockdown measures in South Africa which hurt platinum, iron ore and diamond output.
The miner said it had identified costs savings of about half a billion dollars in addition to benefitting from weaker producer currencies and low oil prices.
Capital expenditure will be reduced by about $1 billion to $4-$4.5 billion, Anglo said, adding that the lower revisions this year may impact spending in future years.
Anglo's South African operations, which account for about 50% of the group's core profit, were now operating at 50% capacity despite an extension of lockdown.
The miner revised down its 2020 output for thermal coal, platinum, palladium and iron ore and diamonds.
(Reporting by Zandi Shabalala; Editing by Toby Chopra)
((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.
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Adds detail LONDON, April 23 (Reuters) - Global miner Anglo American said on Thursday slashed its capital expenditure guidance for the year by about $1 billion and warned of delays some projects due to coronavirus. The London-listed miner said overall production in its first quarter fell by 4% mainly due to lockdown measures in South Africa which hurt platinum, iron ore and diamond output. The miner said it had identified costs savings of about half a billion dollars in addition to benefitting from weaker producer currencies and low oil prices.
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The London-listed miner said overall production in its first quarter fell by 4% mainly due to lockdown measures in South Africa which hurt platinum, iron ore and diamond output. Capital expenditure will be reduced by about $1 billion to $4-$4.5 billion, Anglo said, adding that the lower revisions this year may impact spending in future years. The miner revised down its 2020 output for thermal coal, platinum, palladium and iron ore and diamonds.
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Adds detail LONDON, April 23 (Reuters) - Global miner Anglo American said on Thursday slashed its capital expenditure guidance for the year by about $1 billion and warned of delays some projects due to coronavirus. The London-listed miner said overall production in its first quarter fell by 4% mainly due to lockdown measures in South Africa which hurt platinum, iron ore and diamond output. Capital expenditure will be reduced by about $1 billion to $4-$4.5 billion, Anglo said, adding that the lower revisions this year may impact spending in future years.
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Adds detail LONDON, April 23 (Reuters) - Global miner Anglo American said on Thursday slashed its capital expenditure guidance for the year by about $1 billion and warned of delays some projects due to coronavirus. The London-listed miner said overall production in its first quarter fell by 4% mainly due to lockdown measures in South Africa which hurt platinum, iron ore and diamond output. The miner said it had identified costs savings of about half a billion dollars in addition to benefitting from weaker producer currencies and low oil prices.
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6015.0
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2020-04-23 00:00:00 UTC
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FACTBOX-Disruptions to copper operations from coronavirus outbreak
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AAL
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https://www.nasdaq.com/articles/factbox-disruptions-to-copper-operations-from-coronavirus-outbreak-2020-04-23
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nan
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Refinitiv page on coronavirus impact on metals: https://amers1.apps.cp.thomsonreuters.com/cms/?navid=819738696
April 23 (Reuters) - The following are closures, suspensions and disruptions of copper operations and projects due to the coronavirus outbreak.
Analysts at Refinitiv have cut their forecast for global copper mine output in 2020 by 2.4% to 19.6 million tonnes. Last year, mine production was 20.36 million tonnes.
April 23 - China's MMG Ltd 1208.HK confirms force majeure at Las Bambas mine in Peru. Output for the three months ended March 31 slipped 28% year-on-year to 73,319 tonnes.
April 22 - Antofagasta's ANTO.L annual copper production is now expected to be at the lower end of its range of 725,000-755,000 tonnes. Earlier, it suspended its Los Pelambres Expansion project in Chile for about 120 days.
April 20 - Glencore GLEN.L to reverse its earlier decision to shutter its Zambia subsidiary Mopani Copper Mines if it reaches an agreement with the Zambian government.
April 17 - Rio Tinto RIO.L, RIO.AX cuts 2020 guidance for mined copper to 475,000-520,000 tonnes from 530,000-570,000 tonnes.
April 17 - Vale SA VALE3.SA cuts 2020 production forecast for copper to 360,000-380,000 tonnes from 400,000 tonnes.
April 16 - Underground development progress at the Oyu Tolgoi copper-gold mine RIO.L, RIO.AX, TRQ.TO in Mongolia has been impacted due to Covid-19. The mine produced 146,300 tonnes in 2019. https://bit.ly/2S1XEme
April 13 – The Antamina copper-zinc mine GLEN.L, BHPB.L, BHP.AX, TECKb.TO to halt operations for at least two weeks. The mine previously had been continuing with essential work in production and maintenance. It produced 443,100 tonnes in 2019.
April 13 - Freeport-McMoRan FCX.N suspends operations at its Chino copper mine in New Mexico, which produced 175 million pounds (79,378 tonnes) of copper in 2019.
April 13 - Freeport also said its Cerro Verde mine in Peru was conducting limited operations, with the concentrator operating at one-third of planned rates in early April. The mine produced 1 billion pounds (453,592 tonnes) of copper in 2019. https://bit.ly/2XWTPlO
April 8 - Vale extends care and maintenance at Voisey's Bay copper-nickel mine in Canada by up to three months. Copper concentrate production at the site will be reduced by up to 6,000 tonnes in the first half. https://bit.ly/3avj8OO
April 1 - Centerra Gold CG.TO cuts mill throughput for two weeks at Mt Milligan copper-gold mine in Canada, which produced 32,271 tonnes of copper in 2019. Also significantly reduces operations at the Öksüt Project in Turkey. https://go.aws/2VUOHw7
March 31 - Glencore's Katanga Mining delays commissioning of acid plant in the DRC to the second half. It produced 234,500 tonnes of copper in 2019.
March 30 - China's Henan Yuguang Gold & Lead 600531.SS will put its 150,000 tonnes of annual copper smelting capacity on maintenance for around 20 days in April, two company sources say.
March 25 - The world's biggest copper miner, Chile's Codelco, suspends construction of some projects for 15 days, including underground work at Chuquicamata mine, but said there was no impact on production.
March 24 - First Quantum Minerals Ltd FM.TO says production at its Cobre Panama copper mine would ramp up at a slower-than-expected pace, but output still expected at 285,000 to 310,000 tonnes in 2020.
March 24 - JX Nippon Mining & Metal 5020.T cuts its operation at Caserones copper mine in Chile by 40%. Average annual output of copper in concentrates is 150,000 tonnes.
March 23 - China Molybdenum 603993.SS places TFM mine, the largest copper mine in Democratic Republic of Congo, in isolation as Democratic Republic of Congo imposes a two-day lockdown. TFM produced 177,956 tonnes of copper in 2019.
March 23 - Sprott Resource Holdings SRHI.TO temporarily halts majority of mining operations at Minera Tres Valles in Chile. https://bit.ly/2vPQr0G
March 22 - Mirador Copper mine in Ecuador scales back operations. The Chinese owned mine is due to produce around 96,000 tonnes annually of copper.
March 22 - BHP Group excludes contractors from its Chile copper mines for 15 days.
March 20 - Hudbay Minerals HBM.TO shuts down Constancia operations in Peru, which produced 113,825 tonnes of copper in 2019. https://bit.ly/2UgQZGa
March 20/19/17 - Anglo American AAL.L reduces operations at Los Bronces copper mine in Chile and slows construction work at Quellaveco copper project in Peru. Los Bronces produced 335,000 tonnes of copper in 2019 while Quellaveco was due to launch in 2022 and produce about 300,000 tonnes of copper equivalent a year.
March 19 - Chakana Copper PERU.V temporarily suspends field activities at Soledad copper-gold-silver project in Peru. http://bit.ly/2woO9pk
March 18 - Teck Resources TECKb.TO, TECK.N temporarily suspends construction activities at its Quebrada Blanca Phase 2 (QB2) copper project. It was due to launch in H2 2021 and produce about 316,000 tonnes a year.
March 17 - Vale SA reduces activity and output at its Voisey's Bay copper mine in Canada, which produced 25,000 tonnes in 2019, placing it on care and maintenance for four weeks.
March 10 - Canada's Copper Mountain Mining CMMC.TO cuts mining rate by about 25% for remainder of 2020. Copper output this year is now expected to be 70-75 million lbs (31,752-34,019 tonnes). http://bit.ly/2x9h6G5
March 3 - Copper smelting arm of China's Western Mining 601168.SS has application accepted for a force majeure certificate. Western Mining has 160,000 tonnes of annual copper smelting capacity.
Feb 7 - Guangxi Nanguo Copper, with production capacity of 300,000 tonnes per year, declares force majeure on deliveries of copper concentrate.
(Reporting by Eric Onstad; Editing by Kirsten Donovan)
((eric.onstad@thomsonreuters.com; +44 20 7542 7093; Twitter https://twitter.com/reutersEricO; Reuters Messaging: eric.onstad.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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March 20 - Hudbay Minerals HBM.TO shuts down Constancia operations in Peru, which produced 113,825 tonnes of copper in 2019. https://bit.ly/2UgQZGa March 20/19/17 - Anglo American AAL.L reduces operations at Los Bronces copper mine in Chile and slows construction work at Quellaveco copper project in Peru. March 30 - China's Henan Yuguang Gold & Lead 600531.SS will put its 150,000 tonnes of annual copper smelting capacity on maintenance for around 20 days in April, two company sources say. March 25 - The world's biggest copper miner, Chile's Codelco, suspends construction of some projects for 15 days, including underground work at Chuquicamata mine, but said there was no impact on production.
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March 20 - Hudbay Minerals HBM.TO shuts down Constancia operations in Peru, which produced 113,825 tonnes of copper in 2019. https://bit.ly/2UgQZGa March 20/19/17 - Anglo American AAL.L reduces operations at Los Bronces copper mine in Chile and slows construction work at Quellaveco copper project in Peru. The mine produced 1 billion pounds (453,592 tonnes) of copper in 2019. https://bit.ly/2XWTPlO April 8 - Vale extends care and maintenance at Voisey's Bay copper-nickel mine in Canada by up to three months. March 17 - Vale SA reduces activity and output at its Voisey's Bay copper mine in Canada, which produced 25,000 tonnes in 2019, placing it on care and maintenance for four weeks.
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March 20 - Hudbay Minerals HBM.TO shuts down Constancia operations in Peru, which produced 113,825 tonnes of copper in 2019. https://bit.ly/2UgQZGa March 20/19/17 - Anglo American AAL.L reduces operations at Los Bronces copper mine in Chile and slows construction work at Quellaveco copper project in Peru. April 13 - Freeport-McMoRan FCX.N suspends operations at its Chino copper mine in New Mexico, which produced 175 million pounds (79,378 tonnes) of copper in 2019. Los Bronces produced 335,000 tonnes of copper in 2019 while Quellaveco was due to launch in 2022 and produce about 300,000 tonnes of copper equivalent a year.
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March 20 - Hudbay Minerals HBM.TO shuts down Constancia operations in Peru, which produced 113,825 tonnes of copper in 2019. https://bit.ly/2UgQZGa March 20/19/17 - Anglo American AAL.L reduces operations at Los Bronces copper mine in Chile and slows construction work at Quellaveco copper project in Peru. Last year, mine production was 20.36 million tonnes. March 25 - The world's biggest copper miner, Chile's Codelco, suspends construction of some projects for 15 days, including underground work at Chuquicamata mine, but said there was no impact on production.
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6016.0
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2020-04-23 00:00:00 UTC
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DAL Stock Is Set to Rebound After Re-Opening Measures Are Complete
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AAL
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https://www.nasdaq.com/articles/dal-stock-is-set-to-rebound-after-re-opening-measures-are-complete-2020-04-23
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Multiple positive signs and green shoots are emerging for airlines, including Delta Air Lines Stock (NYSE:DAL). As these positive signs and green shoots strengthen, DAL stock will likely rebound.
Source: NextNewMedia / Shutterstock.com
One of the deterrents to flying, even for people who are ready and willing to do so, has been that there’s been very little to do anywhere in the country for the last month. Why would someone fly if the only places open at his or her destination are grocery stores and Walmart (NYSE:WMT)? Meanwhile, the lack of hotels, many of which have closed, has also been a serious deterrent to traveling.
But the situation looks like it’s changing a bit. A beach in Jacksonville, Florida recently opened, Dallas has opened its craft stores, and Texas has opened its state parks and authorized all retailers to provide curbside pickup service. Even New York, New Jersey, and Connecticut opened their marinas.
At the beginning of May, after the CDC’s novel coronavirus warning expires, the economy will really start to open up. Among the states that look poised to implement the first phase of President Donald Trump’s reopening plan at that point are Texas, Arizona, Alabama, Ohio, Florida, Idaho, Mississippi, Montana, Oklahoma, South Carolina, and Utah.
7 of the Best Large-Cap Stocks to Buy Now
In the first phase of the reopening plan, restaurants and movie theaters are allowed to welcome customers into their establishments, as long as the establishments implement “strict social distancing” precautions. I assume that beaches, parks, golf courses and many hotels will also be reopened at that stage.
With beaches, parks, golf courses and restaurants open in many states, American consumers will finally have good reasons to travel, and as more hotels open, tourists will have places to stay when they get to their destinations.
Hundreds of thousands of people will escape to warmer climates, visit beaches and lakes, golf, fish, and boat. In order to do so, tens of thousands of Americans will buy tickets from airlines, including Delta. And as Delta reports that its ticket sales are climbing, DAL stock will advance.
The Fear of the Virus Is Easing
Those who are bearish on DAL stock will say that Americans will be too scared to fly on planes. But there are many signs that fears of the virus, which had been very strong among most Americans at the end of March and the first couple of weeks of April, are greatly easing.
Protests have been held in several states, demanding that governors ease up on mass closures. One of the most hardline governors, Michigan’s Gretchen Whitmer, seems to have abruptly reversed course, as she said she would soon release plans to reopen the state’s economy.
Dallas County Commissioners, overruling the county’s strict judge, Clay Jenkins, voted 3-2 to open craft stores and avoid levying fines on those who don’t wear masks in public.
Meanwhile, multiple people on my Twitter (NASDAQ:TWTR) feed are reporting that automobile traffic in their areas is increasing, and traffic in my own neighborhood in a Dallas suburb greatly rose during the weekend of Apr. 18.
In light of a few statistics, it’s not surprising that fear of the virus has eased. First, as of Apr. 18, excluding New York and New Jersey, about 21,000 people had died from the coronavirus in the U.S.
Of course, that’s a tragedy, and the combined 17,000 deaths in New York and New Jersey are also terrible. But in this country, an estimated 40,000 people die every year in car accidents, more than 83,000 people died from diabetes in 2017, and 2.8 million people lost their lives from all causes in 2018.
So in the U.S., 21,000 deaths from an illness (or even, hypothetically, 35,000 deaths) in 48 states won’t cause the majority of Americans (in places outside of the New York City metropolitan area) to continue putting their lives on hold for much longer.
Another statistic is also important; as of Apr. 8, according to a CNN poll, only 20% of Americans knew someone who had tested positive for the virus. Many people who don’t know anyone with the virus will tend to not be very afraid of it.
Meanwhile, more Americans are discovering (as I’ve theorized for weeks) that the virus doesn’t spread quickly in warm weather. And new research is showing that its fatality rate is much lower than previously believed.
Finally, antibody tests, which will allow people to see if they’ve already had the virus and are thus immune to it, are about to become widely available. Of course, people who know they’re immune to the virus won’t be afraid of flying.
Two Green Shoots
On Apr. 15, according to a tweet by CNBC anchor Carl Quintanilla, American Airlines CEO Doug Parker told the network that “we’ve started to see bookings — outside of 90 days — tick up a bit. .. There are indications the world is starting to think about traveling again, but they are very preliminary.”
Meanwhile, my wife’s friend said that her husband, who works at Dallas’ DFW International Airport, reported that the number of people who are coming to the airport started meaningfully increasing in mid-April. Those are both very good signs for Delta.
The Bottom Line on DAL Stock
In a past column on American Airlines, I theorized that airlines would reach capacity levels of 30% in May. After reading Parker’s comment, I think that was probably too optimistic.
Still, I’m confident that, by the middle of May, given reduced fear of the virus, the availability of antibody tests, and the easing of closures by multiple states, Delta’s bookings will bounce at least 20%-30% above their current levels. As a result, DAL stock should jump significantly by the end of next month.
As of this writing, Larry Ramer did not own any of the aforementioned stocks. Larry Ramer has conducted research and written articles on U.S. stocks for 13 years. He has been employed by The Fly and Israel’s largest business newspaper, Globes. Larry began writing columns for InvestorPlace in 2015. Among his highly successful, contrarian picks have been GE, solar stocks, and Snap. You can reach him on StockTwits at @larryramer.
The post DAL Stock Is Set to Rebound After Re-Opening Measures Are Complete appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Among the states that look poised to implement the first phase of President Donald Trump’s reopening plan at that point are Texas, Arizona, Alabama, Ohio, Florida, Idaho, Mississippi, Montana, Oklahoma, South Carolina, and Utah. 15, according to a tweet by CNBC anchor Carl Quintanilla, American Airlines CEO Doug Parker told the network that “we’ve started to see bookings — outside of 90 days — tick up a bit. Still, I’m confident that, by the middle of May, given reduced fear of the virus, the availability of antibody tests, and the easing of closures by multiple states, Delta’s bookings will bounce at least 20%-30% above their current levels.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Multiple positive signs and green shoots are emerging for airlines, including Delta Air Lines Stock (NYSE:DAL). A beach in Jacksonville, Florida recently opened, Dallas has opened its craft stores, and Texas has opened its state parks and authorized all retailers to provide curbside pickup service. With beaches, parks, golf courses and restaurants open in many states, American consumers will finally have good reasons to travel, and as more hotels open, tourists will have places to stay when they get to their destinations.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Multiple positive signs and green shoots are emerging for airlines, including Delta Air Lines Stock (NYSE:DAL). With beaches, parks, golf courses and restaurants open in many states, American consumers will finally have good reasons to travel, and as more hotels open, tourists will have places to stay when they get to their destinations. The Fear of the Virus Is Easing Those who are bearish on DAL stock will say that Americans will be too scared to fly on planes.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Multiple positive signs and green shoots are emerging for airlines, including Delta Air Lines Stock (NYSE:DAL). A beach in Jacksonville, Florida recently opened, Dallas has opened its craft stores, and Texas has opened its state parks and authorized all retailers to provide curbside pickup service. The Bottom Line on DAL Stock In a past column on American Airlines, I theorized that airlines would reach capacity levels of 30% in May.
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6017.0
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2020-04-23 00:00:00 UTC
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3 Top Value Stocks to Buy Now
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AAL
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https://www.nasdaq.com/articles/3-top-value-stocks-to-buy-now-2020-04-23
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nan
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nan
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According to The Wall Street Journal, April 6 to April 17, 2020, saw the best two-week performance by the Dow Jones Industrial Average since the 1930s.
If you feel like you've missed out on the market's rise, don't worry, there's value if you know where to look. Here are three value stocks that have the financial strength to take you far over the long term.
Image source: Getty Images.
Waste Management
While the S&P 500 is up 29% since March 23, Waste Management (NYSE: WM) has only clawed back 14%. At around $100 a share, it's still over 20% off its 52-week high.
WM data by YCharts
Waste Management is one of those companies that impacts everyday life, but you may have never considered as an investment.
The company has the largest waste collection, transportation, and disposal business in the United States. Environmentalists may like the company for its transition from diesel to liquefied natural gas (LNG) and compressed natural gas (CNG) for its trucking fleet, its conversion of waste into energy, and its status as the largest recyclables collector in the U.S. Value investors may like the company for its strong market position due to its lack of competitors.
Aside from the public sector in the form of county and city waste programs and a few other companies, the waste management business isn't exactly easy to get into. Federal and state permits vary based on the type of waste and in what capacity it's being managed. Factor in all of the start-up costs like trucking fleets, storage, health and safety, and more, and it's soon apparent the barriers to entry are high.Since Waste Management is the market leader, you can be confident knowing that competition is not a primary concern with this company.
Although not necessarily a value stock from a P/E ratio or price-to-free cash flow (FCF) perspective, Waste Management's value is that it is about as recession-proof as you can get for an industrial company. Trash has been a growing business. A growing population means more waste and an environmentally conscious population means a greater emphasis on recycling, sustainability, biofuels, and landfill efficiency, making Waste Management an industrial you can buy and hold forever.
Southwest Airlines
Southwest Airlines (NYSE: LUV) has had a rough two months as airlines are losing money every day amid the COVID-19 (coronavirus) pandemic. Southwest's differentiating factor is its reputation for solid fundamentals and financial discipline. Despite droves of airline bankruptcies in the early and mid-2000s, including United Airlines and Delta Air Lines, followed by American Airlines in 2011, Southwest has remained profitable for 46 consecutive years.
Even with its struggles in 2019, Southwest entered 2020 as the best major U.S. airline in terms of its balance sheet. At the start of 2020, Southwest had the lowest debt-to-capital, second-lowest debt-to-equity, and the lowest total net long-term debt out of the six major U.S. airlines. Its industry-low debt-to-capital ratio means the company's capital structure is based mostly on equity, not debt, which means less leverage and better solvency.
As a result of the government bailout announced on April 14, Southwest will receive disbursements of more than $3.2 billion -- $2.3 billion in grants to support payroll, and nearly $1 billion in unsecured low-interest rate loans, all backed by warrants that would dilute Southwest shares if exercised. This government assistance, paired with Southwest's experience getting through tough times, makes Southwest the best-positioned U.S. airline. That being said, bear in mind that there are a few key headwinds facing the airline industry right now, so Southwest's recovery is likely to take years.
The Walt Disney Company
Around the world, Disney (NYSE: DIS) is one of the most well-known and well-loved brands. Its stock is typically an "insta-buy" whenever it goes on sale, but this time, there's a little more to it.
Although the stock's trailing twelve month P/E ratio of 16 looks great on paper, those earnings came when the global economy was humming along. Disney was coming off a great fiscal year (FY) 2019 where it was able to grow revenue 17%, and that was before the launch of Disney+. The immediate success of Disney+ paired with a stock market that was near its all-time high allowed Disney to reach its own all-time high in November. The losses the company was experiencing in its direct-to-consumer and international segment from investing in digital content for Disney+, ESPN+, and Hulu were expected to go down once it was confirmed that Q1FY2020 Disney+ subscribers were 26.5 million.
According to the New York Times, "analysts expected Disney Plus to take until 2022 to reach 50 million subscribers," a milestone it passed in early April.That's no surprise considering the number of bored kids and adults stuck at and working from home. The added subscribers will help Disney recover its investment and transition to profitability for its streaming services, but they are still only a fraction of the company's revenue.
The fact of the matter is Disney is an entertainment company that depends on packed parks, movie theatres, sports events, and more. The timing isn't exactly great either, considering Disney just acquired a sizable amount of debt for the purchase of 21st Century Fox. Shutdown parks and vacant movie theatres mean a critical blow to what was almost all of Disney's FY2019 profit.
SEGMENT FY 2019 REVENUE FY 2019 INCOME
Media Networks $24,827 million $7,479 million
Parks, Experiences, and Products $26,225 million $6,758 million
Studio Entertainment $11,127 million $2,686 million
Direct-to-Consumer & International $9,349 million $(1,814 million)
Eliminations $(803 million) $(241 million)
Total $69,570 million $14,868 million
Data Source: The Walt Disney Company, Fourth Quarter and Full-Year Earnings For Fiscal 2019
2020 is going to be ugly for Disney, the silver lining being a surge in Disney+ subscribers who the company hopes will keep the service even after things gradually return to normal. Considering the depth and breadth of its diverse entertainment offerings, it's hard to imagine the stock won't come back from this difficult time. Currently trading at about two thirds the value of its all-time high, now could be a good time for long-term investors to pick up a few shares of Disney.
A medley of value
Waste Management, Southwest Airlines, and Disney are three completely different companies in different industries. All three provide value in different ways for investors who want to be involved in the market but don't want to chase high-flying stocks.
10 stocks we like better than Walt Disney
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Walt Disney wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of April 16, 2020
Daniel Foelber owns shares of Delta Air Lines, Southwest Airlines, Walt Disney, and Waste Management. The Motley Fool owns shares of and recommends Delta Air Lines, Southwest Airlines, and Walt Disney. The Motley Fool recommends Waste Management and recommends the following options: long January 2021 $60 calls on Walt Disney. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Factor in all of the start-up costs like trucking fleets, storage, health and safety, and more, and it's soon apparent the barriers to entry are high.Since Waste Management is the market leader, you can be confident knowing that competition is not a primary concern with this company. According to the New York Times, "analysts expected Disney Plus to take until 2022 to reach 50 million subscribers," a milestone it passed in early April.That's no surprise considering the number of bored kids and adults stuck at and working from home. Considering the depth and breadth of its diverse entertainment offerings, it's hard to imagine the stock won't come back from this difficult time.
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Media Networks $24,827 million $7,479 million Parks, Experiences, and Products $26,225 million $6,758 million Studio Entertainment $11,127 million $2,686 million Direct-to-Consumer & International $9,349 million $(1,814 million) Eliminations $(803 million) $(241 million) Total $69,570 million $14,868 million Data Source: The Walt Disney Company, Fourth Quarter and Full-Year Earnings For Fiscal 2019 2020 is going to be ugly for Disney, the silver lining being a surge in Disney+ subscribers who the company hopes will keep the service even after things gradually return to normal. See the 10 stocks *Stock Advisor returns as of April 16, 2020 Daniel Foelber owns shares of Delta Air Lines, Southwest Airlines, Walt Disney, and Waste Management. The Motley Fool owns shares of and recommends Delta Air Lines, Southwest Airlines, and Walt Disney.
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Media Networks $24,827 million $7,479 million Parks, Experiences, and Products $26,225 million $6,758 million Studio Entertainment $11,127 million $2,686 million Direct-to-Consumer & International $9,349 million $(1,814 million) Eliminations $(803 million) $(241 million) Total $69,570 million $14,868 million Data Source: The Walt Disney Company, Fourth Quarter and Full-Year Earnings For Fiscal 2019 2020 is going to be ugly for Disney, the silver lining being a surge in Disney+ subscribers who the company hopes will keep the service even after things gradually return to normal. A medley of value Waste Management, Southwest Airlines, and Disney are three completely different companies in different industries. See the 10 stocks *Stock Advisor returns as of April 16, 2020 Daniel Foelber owns shares of Delta Air Lines, Southwest Airlines, Walt Disney, and Waste Management.
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Waste Management While the S&P 500 is up 29% since March 23, Waste Management (NYSE: WM) has only clawed back 14%. A medley of value Waste Management, Southwest Airlines, and Disney are three completely different companies in different industries. See the 10 stocks *Stock Advisor returns as of April 16, 2020 Daniel Foelber owns shares of Delta Air Lines, Southwest Airlines, Walt Disney, and Waste Management.
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6018.0
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2020-04-23 00:00:00 UTC
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United mandates masks for flight attendants, unions want passengers included
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AAL
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https://www.nasdaq.com/articles/united-mandates-masks-for-flight-attendants-unions-want-passengers-included-2020-04-23
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nan
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nan
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By Tracy Rucinski and David Shepardson
April 23 (Reuters) - All United Airlines flight attendants must wear a face covering or mask while on duty starting April 24, it said on Thursday, in the first such rule by a major U.S. carrier.
The Association of Flight Attendants (AFA), whose members work for United Airlines Holdings Inc UAL.Oand 19 other carriers, welcomed the move but urged Washington to require passengers to wear masks as well.
In an April 23 letter seen by Reuters, AFA President Sara Nelson asked the departments of Transportation and Health and Human Services to mandate masks for crew, employees and passengers; require personal protective equipment; and end all leisure travel until the coronavirus pandemic is contained.
United's move reflects airlines' evolving stance on masks for crew members as coronavirus outbreaks have spread across the world. Initially flight attendants were only allowed to wear masks on international flights to coronavirus hotspots.
U.S. pilot unions' representatives have been meeting with members of Congress to seek legislation to protect against the spread of coronavirus on airplanes, union officials said on Thursday.
"Flight crews are a unique vector for the virus, traveling all over the country. It is vital that our crews be treated as essential workers and have access to personal protection equipment and testing," said Jason Goldberg, spokesman for the Allied Pilots Association that represents American Airlines Group Inc AAL.O pilots.
Major U.S. airlines have drastically scaled back flying schedules as demand has plummeted but they continue to operate domestic flights and a handful of international routes.
On Monday, Canada started requiring passengers to wear a non-medical mask or face covering during the boarding process and flights.
(Reporting by Tracy Rucinski and David Shepardson; Editing by Richard Chang)
((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.
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It is vital that our crews be treated as essential workers and have access to personal protection equipment and testing," said Jason Goldberg, spokesman for the Allied Pilots Association that represents American Airlines Group Inc AAL.O pilots. The Association of Flight Attendants (AFA), whose members work for United Airlines Holdings Inc UAL.Oand 19 other carriers, welcomed the move but urged Washington to require passengers to wear masks as well. In an April 23 letter seen by Reuters, AFA President Sara Nelson asked the departments of Transportation and Health and Human Services to mandate masks for crew, employees and passengers; require personal protective equipment; and end all leisure travel until the coronavirus pandemic is contained.
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It is vital that our crews be treated as essential workers and have access to personal protection equipment and testing," said Jason Goldberg, spokesman for the Allied Pilots Association that represents American Airlines Group Inc AAL.O pilots. By Tracy Rucinski and David Shepardson April 23 (Reuters) - All United Airlines flight attendants must wear a face covering or mask while on duty starting April 24, it said on Thursday, in the first such rule by a major U.S. carrier. In an April 23 letter seen by Reuters, AFA President Sara Nelson asked the departments of Transportation and Health and Human Services to mandate masks for crew, employees and passengers; require personal protective equipment; and end all leisure travel until the coronavirus pandemic is contained.
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It is vital that our crews be treated as essential workers and have access to personal protection equipment and testing," said Jason Goldberg, spokesman for the Allied Pilots Association that represents American Airlines Group Inc AAL.O pilots. By Tracy Rucinski and David Shepardson April 23 (Reuters) - All United Airlines flight attendants must wear a face covering or mask while on duty starting April 24, it said on Thursday, in the first such rule by a major U.S. carrier. The Association of Flight Attendants (AFA), whose members work for United Airlines Holdings Inc UAL.Oand 19 other carriers, welcomed the move but urged Washington to require passengers to wear masks as well.
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It is vital that our crews be treated as essential workers and have access to personal protection equipment and testing," said Jason Goldberg, spokesman for the Allied Pilots Association that represents American Airlines Group Inc AAL.O pilots. By Tracy Rucinski and David Shepardson April 23 (Reuters) - All United Airlines flight attendants must wear a face covering or mask while on duty starting April 24, it said on Thursday, in the first such rule by a major U.S. carrier. The Association of Flight Attendants (AFA), whose members work for United Airlines Holdings Inc UAL.Oand 19 other carriers, welcomed the move but urged Washington to require passengers to wear masks as well.
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6019.0
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2020-04-23 00:00:00 UTC
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United mandates masks for flight attendants, unions want passengers included
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AAL
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https://www.nasdaq.com/articles/united-mandates-masks-for-flight-attendants-unions-want-passengers-included-2020-04-23-0
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nan
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nan
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By Tracy Rucinski and David Shepardson
April 23 (Reuters) - All United Airlines flight attendants must wear a face covering or mask while on duty starting April 24, the airline said on Thursday, in the first such rule by a major U.S. carrier.
The Association of Flight Attendants (AFA), whose members work for United Airlines Holdings Inc UAL.O and 19 other carriers, welcomed the move but urged Washington to require passengers to wear masks as well to protect against the spread of coronavirus on airplanes.
In an April 23 letter seen by Reuters, AFA President Sara Nelson asked the departments of Transportation and Health and Human Services to mandate masks for crew, employees and passengers; require personal protective equipment; and end all leisure travel until the coronavirus pandemic is contained.
United's move reflects airlines' evolving stance on masks for crew members as coronavirus outbreaks have spread across the world. Initially flight attendants were only allowed to wear masks on international flights to coronavirus hotspots.
U.S. pilot unions' representatives have been meeting with members of Congress to seek legislation to protect against the spread of coronavirus on airplanes, union officials said on Thursday.
"Flight crews are a unique vector for the virus, traveling all over the country. It is vital that our crews be treated as essential workers and have access to personal protection equipment and testing," said Jason Goldberg, spokesman for the Allied Pilots Association that represents American Airlines Group Inc AAL.O pilots.
Major U.S. airlines have drastically scaled back flying schedules as demand has plummeted but they continue to operate domestic flights and a handful of international routes. Flights are mostly occupied by essential travelers, with business and leisure demand having virtually vanished.
Once the health crisis subsides, airline industry leaders say a recovery in demand will depend on people feeling safe.
On Monday, Canada started requiring passengers to wear a non-medical mask or face covering during the boarding process and flights.
In Europe, where travel has been more restricted due to strict lockdowns in countries like Spain, the European Commission plans to present a set of rules for the safe reopening of air travel, including social distancing. .
Some U.S. airlines have started implementing their own measures, including blocking middle seats and changing the boarding process, but have called for consistency among government requirements.
The World Health Organization's top emergencies expert Dr. Mike Ryan warned on Wednesday against opening up global travel too quickly, saying it would require "careful risk management" as societies prepare for the 'new normal' until experts better understand the virus and its transmission.
(Reporting by Tracy Rucinski and David Shepardson; Editing by Richard Chang and Richard Pullin)
((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.
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It is vital that our crews be treated as essential workers and have access to personal protection equipment and testing," said Jason Goldberg, spokesman for the Allied Pilots Association that represents American Airlines Group Inc AAL.O pilots. The Association of Flight Attendants (AFA), whose members work for United Airlines Holdings Inc UAL.O and 19 other carriers, welcomed the move but urged Washington to require passengers to wear masks as well to protect against the spread of coronavirus on airplanes. In an April 23 letter seen by Reuters, AFA President Sara Nelson asked the departments of Transportation and Health and Human Services to mandate masks for crew, employees and passengers; require personal protective equipment; and end all leisure travel until the coronavirus pandemic is contained.
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It is vital that our crews be treated as essential workers and have access to personal protection equipment and testing," said Jason Goldberg, spokesman for the Allied Pilots Association that represents American Airlines Group Inc AAL.O pilots. By Tracy Rucinski and David Shepardson April 23 (Reuters) - All United Airlines flight attendants must wear a face covering or mask while on duty starting April 24, the airline said on Thursday, in the first such rule by a major U.S. carrier. In an April 23 letter seen by Reuters, AFA President Sara Nelson asked the departments of Transportation and Health and Human Services to mandate masks for crew, employees and passengers; require personal protective equipment; and end all leisure travel until the coronavirus pandemic is contained.
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It is vital that our crews be treated as essential workers and have access to personal protection equipment and testing," said Jason Goldberg, spokesman for the Allied Pilots Association that represents American Airlines Group Inc AAL.O pilots. By Tracy Rucinski and David Shepardson April 23 (Reuters) - All United Airlines flight attendants must wear a face covering or mask while on duty starting April 24, the airline said on Thursday, in the first such rule by a major U.S. carrier. The Association of Flight Attendants (AFA), whose members work for United Airlines Holdings Inc UAL.O and 19 other carriers, welcomed the move but urged Washington to require passengers to wear masks as well to protect against the spread of coronavirus on airplanes.
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It is vital that our crews be treated as essential workers and have access to personal protection equipment and testing," said Jason Goldberg, spokesman for the Allied Pilots Association that represents American Airlines Group Inc AAL.O pilots. By Tracy Rucinski and David Shepardson April 23 (Reuters) - All United Airlines flight attendants must wear a face covering or mask while on duty starting April 24, the airline said on Thursday, in the first such rule by a major U.S. carrier. The Association of Flight Attendants (AFA), whose members work for United Airlines Holdings Inc UAL.O and 19 other carriers, welcomed the move but urged Washington to require passengers to wear masks as well to protect against the spread of coronavirus on airplanes.
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6020.0
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2020-04-22 00:00:00 UTC
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American Airlines Stock Is Crazy Cheap But Extremely Risky
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AAL
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https://www.nasdaq.com/articles/american-airlines-stock-is-crazy-cheap-but-extremely-risky-2020-04-22
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Airlines have been one of the hardest-hit industries in 2020 thanks to the novel coronavirus. American Airlines (NYSE:AAL) stock is down 61.4% year-to-date, and it’s not alone. Travel restrictions have banned many flights and brought the global travel industry to a screeching halt.
Source: GagliardiPhotography / Shutterstock.com
American Airlines stock is now trading at under $12 for the first time, which brings us to three three major questions for investors.
First, can the company survive Covid-19? Second, how much debt and dilution will it take to weather the storm? And third, will things ever get back to normal for airlines?
The News
At this point, I believe the first question seems to have been answered. Yes, American will survive Covid-19. The government has made clear it will support the airline industry with bailouts. Airlines are essential businesses, and they are all struggling. And I believe President Trump and his supporters would not appreciate the optics of a full government takeover of a major airline like American.
On April 14, American announced it received $5.8 billion in aid from the government. That aid included $4.1 billion via a direct grant and a $1.7 billion low-rate loan. American also said it anticipates obtaining a separate $4.75 billion loan from the Treasury.
As part of the terms of the bailout, airlines were on the hook for paying back just 30% of the grants. In other words, American just got $2.87 billion of no-strings-attached cash.
7 Stocks to Buy to Maximize Your Stimulus Check
Which brings us to the second question. What will it take for American to survive the downturn? Delta Air Lines (NYSE: DAL) has said the government would be taking a 1% equity stake in the company as part of its bailout. Airlines are also banned from laying off workers before Sept. 30. They can’t pay dividends or buy back stock until Sept. 30, 2021.
American was forced to issue warrants as part of its bailout that could end up giving the Treasury a 6% ownership stake in the company. That dilution seems relatively small, but the key will be whether or not the current bailout is enough. Every time American needs more support, it takes on more debt and/or dilutes shareholders further.
The Outlook
The third question of if and when things will get back to normal is on the minds of all investors regardless of market sector. First of all, I do think things will eventually get back to normal. Sure, some things may change to prevent the type of hardships the world is enduring today. But people will always travel, and flying is the best way to travel long distances.
“Two factors driving our long-term outlook are low oil prices improving profit margins, with AAL’s fuel expense ratio falling from roughly 30% in 2012-14 to 16% in 2019; and long-term growth in air travel demand as the global economy integrates,” CFRA analyst Colin Scarola says.
CFRA has a cautious “hold” rating for AAL stock. But Scarola’s $26 price target suggests the stock could easily more than double from current levels over the next year.
In fact, prior to the Covid-19 disruption, U.S. airline passenger miles grew 4% annually from 2015 through 2019, according to CFRA. In other words, the airline industry was growing at twice the rate of overall U.S. GDP over the past five years.
How to Play AAL Stock
The airlines today remind me a lot of the banks back in 2008 and 2009. American now has more than $20 billion in long-term debt, a huge amount for a company with a market cap of just $4.7 billion. However, American also generated $3.79 in earnings per share in 2019. In other words, the stock is trading at a normalized earnings multiple of about 2.9, which is absurdly low.
Sure, it will probably be a long time before airline earnings get back to normal. But what is a long time? A year? Two? The stock market is forward looking, so however long it takes, investors won’t have to wait that long to see gains in the stock.
Those 2019 earnings demonstrate that, like the banks in 2009, airlines’ core businesses are solid. Once this unprecedented disruption passes, they will be solid again. Ironically, prior to the outbreak, I believed the big four U.S. airlines were positioned to stay profitable during the next U.S. recession for the first time in their history. Of course, nobody could have known the next U.S. recession would be triggered by a contagious virus that would completely shut down the travel industry like no other time in history.
In a nutshell, I think American and other airlines will survive the downturn with help from the government. I think their businesses and stocks will eventually recover. Personally, I prefer United Airlines (NYSE:UAL) over AAL stock because United has a larger market cap and lower debt levels.
Wayne Duggan has been a U.S. News & World Report Investing contributor since 2016 and is a staff writer at Benzinga, where he has written more than 7,000 articles. Mr. Duggan is the author of the book “Beating Wall Street With Common Sense,” which focuses on investing psychology and practical strategies to outperform the stock market. As of this writing, he was long UAL stock.
The post American Airlines Stock Is Crazy Cheap But Extremely Risky appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines (NYSE:AAL) stock is down 61.4% year-to-date, and it’s not alone. “Two factors driving our long-term outlook are low oil prices improving profit margins, with AAL’s fuel expense ratio falling from roughly 30% in 2012-14 to 16% in 2019; and long-term growth in air travel demand as the global economy integrates,” CFRA analyst Colin Scarola says. CFRA has a cautious “hold” rating for AAL stock.
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American Airlines (NYSE:AAL) stock is down 61.4% year-to-date, and it’s not alone. Personally, I prefer United Airlines (NYSE:UAL) over AAL stock because United has a larger market cap and lower debt levels. “Two factors driving our long-term outlook are low oil prices improving profit margins, with AAL’s fuel expense ratio falling from roughly 30% in 2012-14 to 16% in 2019; and long-term growth in air travel demand as the global economy integrates,” CFRA analyst Colin Scarola says.
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American Airlines (NYSE:AAL) stock is down 61.4% year-to-date, and it’s not alone. “Two factors driving our long-term outlook are low oil prices improving profit margins, with AAL’s fuel expense ratio falling from roughly 30% in 2012-14 to 16% in 2019; and long-term growth in air travel demand as the global economy integrates,” CFRA analyst Colin Scarola says. CFRA has a cautious “hold” rating for AAL stock.
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American Airlines (NYSE:AAL) stock is down 61.4% year-to-date, and it’s not alone. “Two factors driving our long-term outlook are low oil prices improving profit margins, with AAL’s fuel expense ratio falling from roughly 30% in 2012-14 to 16% in 2019; and long-term growth in air travel demand as the global economy integrates,” CFRA analyst Colin Scarola says. CFRA has a cautious “hold” rating for AAL stock.
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6021.0
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2020-04-22 00:00:00 UTC
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How Banks Have Prepared for a Slowdown
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AAL
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https://www.nasdaq.com/articles/how-banks-have-prepared-for-a-slowdown-2020-04-22
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In this episode of Motley Fool Money, Chris Hill and Motley Fool analysts Jason Moser and Ron Gross discuss the rising stock market and the upcoming earnings season. Get updates on what's going on with the retail space. Discover how some companies are gaining traction in this environment and what's happening in advertising space. They cover the airline and entertainment industries as well. Finally, get some stock recommendations for your watch list.
Also, Tom Gardner and Bill Mann speak with Okta (NASDAQ: OKTA) Co-Founder, Frederic Kerrest, about security and entrepreneurship.
To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center. To get started investing, check out our quick-start guide to investing in stocks. A full transcript follows the video.
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This video was recorded on April 14, 2020.
Chris Hill: We've got the latest headlines from Wall Street. Okta co-founder Frederic Kerrest is our guest, and as always, we've got some stocks on our radar, but we begin with the big macro.
An additional 5.2 million Americans filed for unemployment this week. That brings the total over the last four weeks to 22 million Americans unemployed. And yet, gentlemen, the Dow, S&P 500, and Nasdaq all up this week. And Jason, I know there are some bright spots out there, and we're going to get to them, but just the unemployment number and a rising stock market really seems like a disconnect.
Jason Moser: It definitely does. And I think this portends what is going to be really a tale of two recoveries, right? I mean, we're going to see the recovery for Wall Street and we're going to see the recovery from Main Street. And I think it's fair to assume, we always talk about the market being forward-looking, I mean, the market is going to get ahead of the actual recovery. And so, at least we're seeing -- we came out of a really bad stretch [laughs] in March where it seemed like every day there was nothing but bad news, and now here in April, we're starting to see some glimmers of better news. And it does seem like the curve is flattening. Maybe there's a finish line here. And I think that's ultimately what the market is taking into consideration, at least partly, it's that there is a finish line here at some point. We're talking about opening the country back up here step-by-step, little by little. And that's encouraging, but it is going to be, I think, the tale of two recoveries.
And Jamie Dimon, CEO of JPMorgan (NYSE: JPM), noted in his most recent JPMorgan shareholder letter, around 100 million Americans own stock. And that's an impressive number from one perspective, but from the other perspective, it also shows that most Americans don't actually own stock. And I think that's where that other side of the recovery is going to be. A bit of a bigger question mark is -- we sit here and we talk about these market conditions and enjoy the fact that the markets may be recovering a little bit, but we can't ignore the fact that most people out there aren't participating in this, and there are some real ramifications of this shutdown that are going to play out for a while to come.
But there is a finish line. This isn't something that's going to last forever, it's not going to be a lost decade. Perhaps that's something that's playing into these numbers today.
Ron Gross: Yeah, I agree. And I agree it's all about the market being forward-looking. I think what the market is telling us is that they see the stimulus packages as a bridge to what will one day be a new normal. And the new normal will include antivirals and vaccines, which we're also -- at the same time, we're getting good news about these coming out.
So a flattening curve, a stimulus program as a bridge, antivirals and vaccines, kind of, gets you back to at least somewhere closer to where you want to be, and the market is showing us that right now.
Hill: Yeah, I mean, we definitely saw some encouraging news, let's call it. You look at Abbott Labs and the COVID-19 tests that they're working on. Gilead Sciences, that stock was up about 10% this week on reports of a clinical trial of Gilead's antiviral drugs that could be promising in terms of treating COVID-19. So yeah, I think that there are definitely some bright spots that investors are --
Moser: ... I think it's fair also to look a little bit more for -- I mean, we're getting into this earnings season now, which I think is going to be pretty interesting. And all we know going into this earnings season, it's going to be bad, right? But it's going to be really bad. And that's all we can really say. It's very difficult to quantify this, because we haven't been through something of this nature before. Those unemployment claims are phenomenally large. And I think you have to go all the way back to 1982, I believe, to see the last stretch of time where it was something of this magnitude.
But for me, I mean, I am actually looking to the next earnings season, because I think that's actually going to be a bit more telling, it's going to help put this earnings season more in the context. So while the market is reacting pretty positively today, I certainly wouldn't read into that and think, oh, we're out of the woods now. Because it's very, very possible that in the next three months, as the next earnings season starts to hit, we're going to get a little bit more context as to how bad things either are or were, and we, I think, will know a whole heck of a lot more three months from now.
Gross: And unfortunately, I don't think we're going to flip a switch and get back to somewhere close to normal. There are too many people unemployed, and there are too many small businesses that, unfortunately, I think, are going to go out even though there's a Paycheck Protection Program and other stimulus programs for small businesses out there. So not everyone is going to go back to work quickly. Some folks are going to have to switch careers, I think, they're going to have to find other places to work. This is going to take a while. So while the economy will look better probably 6 to 12 months from now than it does today, it's not going to go back to where we were six months ago, not anytime soon, I don't think.
Hill: Well, let's move on to retail, because we got the monthly report for March, and sales fell nearly 9%. That was the worst drop in history. Although groceries were a bright spot, consumer goods as well. And, Ron, we saw that on Friday with Procter & Gamble's (NYSE: PG) third-quarter sales up 10%, because among the brands in the Procter & Gamble empire, you've got Charmin toilet paper and Bounty paper towels.
Gross: Yeah. So two things. Don't extrapolate that March retail sales as something that looks not that bad at 8% or 9% down, because it's a short period of time, and things are actually much worse than that, I think, if you broaden out the lens. And I think we'll see, actually, numbers come in that, except for grocery and beverages, will just continue to be really, really weak.
On the other side, I wouldn't extrapolate too much out of Procter & Gamble, because that strength is more of a one-time, perhaps a two-time hit because people were stocking up on consumer staples. Theoretically, that's not going to continue into the future, at least not at this pace. So while P&G had a really strong report, raised their dividends, and, you know, kudos to them and what they're doing, I would be careful not to extrapolate those results into the future.
Hill: And, Jason, Amazon shares hitting an all-time --
Moser: ... well, I mean, that does make a lot of sense, right? We're seeing -- clearly a lot of businesses struggle in this market, but as we note, in times of trouble, this is when the leaders typically gain more share and come out on the other side of the recovery even stronger. And so, whether it's an established business like Amazon and that, sort of, makes a lot of sense there.
Look at some of these other businesses that are participating in the digital economy, and it's understandable why they are performing well. DocuSign hitting 52-week highs here. Well, that makes a lot of sense, I mean, that we don't have to sign papers in person anymore, we can do it digitally. Teladoc Health, obviously, telemedicine gaining traction. Look at Shopify. I saw a data point here, where Shopify's network is essentially handling Black Friday-level sales or Black Friday-level traffic every day, which is just amazing to think about. But the fact of the matter is that Shopify is a business that helps people set up their e-commerce presence, so that makes a lot of sense there.
And then you couple that with what we saw news this week, where Stripe, the payments company, just raised some more money at about a $36 billion valuation. Now, understanding that private valuations are a bit more nebulous than the public valuations, but that puts Stripe at a 44% premium to Square. And Square has done an awful good job as well. Now, the reason why Stripe matters is because Stripe is the payments provider for Shopify. And so, Shopify's success to a degree begets some of Stripe's success. So if we do see a point in time where Stripe does go public, there's going to be a lot of interested parties there as well.
So there is an opportunity here for a lot of companies, and we're seeing some really capitalize.
Gross: Yeah, I think the crisis exacerbates the opportunities for the market leaders, right? The Amazons, the Costcos of the world. They're going to be the winners here. There will be a retail shakeout, there will be a restaurant shakeout, we're not going to be left with the same amount of retail and restaurants out there after this is over.
We saw earlier in the week, JCPenney finally perhaps talking about some kind of bankruptcy, although I think it should be a liquidation, not a reorganization; how long can we drag this one out? But that's just one example. Yes, companies are furloughing workers, and yes, they will bring them back online at some point, but they're not all going to come back online, and not all these businesses will survive.
Hill: Let me tie two things together that we've been talking about here. One is market leaders and the other is the earnings season that we are entering into right now, because Facebook (NASDAQ: FB) and Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) make a ton of money off of advertising, and we're starting to see more and more data come out about advertising spends being slashed. Barry Diller, the chairman of Expedia, came out this week and said Expedia normally spends around $5 billion in advertising. This year they're not even going to spend $1 billion. Now, I get that they're in the business of travel. Not every business out there is necessarily going to slash their ad budget by 85%, but that's going to be interesting to see what color we get from Facebook and Alphabet.
Moser: Yeah, I think that's exactly right. I think, when you look at these platforms, whether it's Facebook or Google, I mean, I'll throw a Twitter in there as well, these are platforms, they're all seeing tremendous boost in engagement. The dilemma is that engagement really is more about what's going on with the coronavirus and COVID-19, that is really what is covering these networks wall to wall. And advertising partners don't really want to be advertising in the midst of that news cycle. I mean, you don't want to be throwing your advertising dollars toward a platform that's really focused on probably the worst news we've been dealing with maybe in our lifetimes. But it is something that will pass.
Another interesting point: Pinterest recently updated their numbers; I think withdrew guidance. But they noted, even despite the weakness across the entire advertising market, their exposure to some of the more affected segments, like, travel and automotive and restaurants that their exposure is a little bit lower in those segments. And those segments have been hit a little bit harder as well. So it is interesting to see how some networks, like Pinterest, which cater to a little bit more of a specific audience, are a little bit more protected in a time like this. But, yeah, I mean, you're looking at Google and Facebook, I mean, they're going to come out of this just fine.
Gross: Yeah, but I will add, you would expect to see companies pull back on marketing and advertising, because those are variable expenses versus fixed expenses, and that's a lever they can pull to, kind of, rein in expenses and costs as they need to wait this out. So that is one place the revenue is not going to be there anyway, so to pull back on marketing and advertising is almost a no-brainer bringing those costs down, buy yourself some time.
Hill: The big banks have kicked off earnings season this week. As an industry, the big banks typically go first, you know, Goldman Sachs, Bank of America, JPMorgan Chase, Morgan Stanley. What stood out to you when you look at them as a group this week?
Moser: Yeah, to me, the headline can be summed up in two words, and that's "loss reserves." And I've been thinking about this, I think one of the byproducts of the Great Recession, what could be argued is that it did put our major financial institutions on firmer footing from a capital perspective. It certainly gave them the mindset to come into something like this a little bit more prepared, but they're doing the things that they need to do. They're going to continue to pay dividends until that becomes something that is more concerning. Buybacks are suspended.
But back to the reserves. I mean, we looked through these calls here, JPMorgan built the reserves up by $6.8 billion this quarter. Bank of America built theirs up by $3.6 billion, and since year-end, their reserves are now built up by $6.9 billion. Wells Fargo built theirs up by $3.1 billion.
And, Chris, you know I love to go through these earnings calls and just, sort of, search for some language there. We talk about that word "reserve." This quarter JPMorgan mentioned the word "reserve" in their call 31 times, that was six times a year ago. Bank of America used that word 46 times this quarter versus 10 times a year ago. So there's a clear trend there. And these banks are very focused on making sure that they are in good capital positions, and that's what we want to see.
Gross: Agreed. Now, that's interesting research, counting the number of times, I love that.
Moser: Hey, data is king, Ron. You got to go where the data tells you.
Gross: [laughs] The other trend I saw, pretty much across the board, the only bright spots for all of these companies were their trading divisions, whether it's Bank of America up 33%, JPMorgan up 32%, Goldman Sachs up 28%, relatively large numbers, only bright spot, pretty much across the division. Citibank more focused on consumer, not getting it done pretty much anywhere yet at this point, but trading strong, everything else weak.
Hill: The airline industry is getting a little bit of good news this week. Delta, American, JetBlue, and Southwest, all coming out saying they've reached agreements with the Treasury Department on that $25 billion plan for payroll grants.
So Ron, we were talking earlier in the show about companies getting a bridge. This is certainly a bridge for the airline industry.
Gross: A badly needed bridge. And it's interesting, from a stock perspective, it looks like analysts were hoping for more. I'm not sure what more they were looking for, because the stocks didn't react as one perhaps would have expected. But this is very important: $25 billion, as you said, in payroll grants. No furloughing until Sept. 30, limits on dividends, share repurchase, executive comp.
One of the interesting parts of this is it gives the government warrants to acquire stocks. So it's likely that when this all shakes out, we're going to end up with some government ownership of the majors here. And folks like American, Delta, United, JetBlue, Southeast participating in this program. So that will be interesting to see.
I don't know if this is going to be enough, quite frankly. I think the airline industry is going to get back to some kind of new normal very slowly. $25 billion, and there's another $25 billion on the other side in stimulus as well. We may have to go back to the well here depending on how long this takes.
Hill: Yeah, and the more you hear from the CEOs in the airline industry, the more you get a clear picture of just how they are cutting capacity to the bone.
Gross: Yeah, United came out and said demand won't come back quickly, expect demand to remain repressed for the remainder of 2020 and into 2021. That's sobering, but it's realistic. Even when we do get back to travel, planes will be nowhere near capacity. Maybe they'll be at half capacity if we social distance. International travel will certainly take a while to come back.
So you know, this will take a while. Prices, obviously, are very, very low, as they should be, and if we can get back, let's call it a year or two from now or even three, gains, from a stock perspective, could be strong enough to make up for the time it will take to get us back on our feet here.
Hill: This week, Comcast (NASDAQ: CMCSA) started a soft launch of its new Peacock video streaming service. Comcast is the parent company of NBC and Universal. So, Jason, there's obviously a lot of content there with The Office, and Parks and Rec, and Fast & Furious movies and the Despicable Me movies. Interesting, though, that they're doing this soft launch. This is not what Disney did with Disney+, where they delayed the launch and did everything at once. This is starting now just for, sort of, the high-end subscribers of the Xfinity services. And then, into 2021, it's going to get the full push.
Moser: Yeah, I guess I'm on the fence about this service. I mean, I understand what they're doing. I wonder what their end goal is here with this. Is it to have a presence in the streaming space? Is it to build a streaming empire, so to speak, and this is one of the first bricks that they lay in the foundation? So I think, it really does boil down to -- are they going to have that arsenal of content that ultimately will attract viewers that keeps them around? And then maybe affords Comcast the ability to raise prices on that service as time goes on.
Because it really does boil down to having content that people want to watch. And so, you know, one of the comparables there, I see what Disney has done with FX on Hulu, for example. And as a Hulu Live subscriber, that's essentially, kind of, your skinny bundle, right? It's cable, but it's not cable. But they've rolled FX into that Hulu family, and it gives them the opportunity to continue monetizing on the advertising front while also monetizing on the subscriber front in the context of a bigger offering.
And so it feels to me, like, consumers are starting to become a little bit exhausted with all of the streaming services that are out there. Peacock is definitely late to the game. I just don't know how many eyeballs it's ultimately going to attract.
Gross: The goal is, obviously, 24/7 Law & Order, so you don't realize what else is there. No. But you know, they're all reasonably priced in a vacuum, with ads $5, no ads $10. That's great, but how many of these are going to show up on my credit card statement every month? I've already got four, five, and six, there's too many. We're going to go back at some point to some kind of bundling, some kind of partnerships, or there's going to be just big winners and lots of losers, and that will be interesting to watch.
Hill: It was three years ago this month that Okta went public. Okta is a software business that helps companies manage identity and access. The stock has risen more than 500% since the IPO. And earlier this week, Motley Fool CEO Tom Gardner and senior analyst Bill Mann talked with Frederic Kerrest, Okta's chief operating officer and one of the company's co-founders. They discussed cybersecurity and tips for setting up a good password. Frederic Kerrest kicked things off by sharing Okta's origin story.
Frederic Kerrest: So we started the company just over 11 years ago. It was me and another guy, Todd McKinnon, we still work together after +11 years. I've spent more time with him than I have with my wife, so I know all of his little pet peeves.
Today the company has got about 2,400 employees, about 8,000 enterprise customers. We've been public for three years on Nasdaq. So it's 12 quarters, not that I'm counting, but if I were it would be 12 quarters. And I think it's about a $600 million revenue run rate business growing in the high 40%.
So look, if you give me all those stats when we started the company 10, 11 years ago, I would have taken them in a heartbeat. Based on where I am sitting today and what I think is ahead -- obviously, the COVID crisis notwithstanding -- I think the opportunity is great the next 3, 5, 10 years, and I'm excited to talk with you guys about it today.
Bill Mann: So Frederic, I'm pretty good at math, and so if I go backwards 11 years --
Kerrest: Uh-oh!
Mann: Yeah, you are founding your company, you're at Salesforce. In 2008-2009, when you're talking about this, which was really the last real financial crisis, obviously, very different from today. It was a real leap of faith, I think, for you all to go out during that time. Are there some things that you feel, like, you got right from the outset by virtue of being forged in steel, so to speak?
Kerrest: Yeah. So a couple of things there. The first one is, if you look back historically over the last 20, 30 years, large technology companies have successfully been founded oftentimes in these moments of crisis. So whether it's Google that happened on the previous one, you look at our whole generation of our cloud technology infrastructure companies that were built in 2009-2010, why is that?
Well, first of all, when you're building a company like ours, its infrastructure, its identity, its security, it takes a couple years just to get the core of the platform up and running. So there's nothing going on in those first couple of years other than building the software, trying to put the first team together, spending a lot of time with potential customers, or not even customers, because you don't have any customers, but just talking to people about what kinds of problems you would help them solve.
And so by the time you've actually built up that first base of product and feel like you're good enough to get out there and get going, people are actually starting to buy again. So I wouldn't be surprised if we see that happen again this time around. I think entrepreneurs are a very resilient bunch. Certainly, I think, there's a lot more focus put by venture capitalists on the types of businesses that they're going to fund, without a doubt, in the coming times here. But, I think, for those who really find the right product market fit or opportunities, you're going to see a whole new host of companies that are built that way.
Now, for us, we also kind of lucked on the timing, right? Because if you just look at the data on what's happened in enterprise IT spend, over the last 10 years, yeah, you would say, "Well, you guys are geniuses." It's not like I could have foretold that in my crystal ball when we were building the company in 2009, right? Software-as-a-Service, cloud security was a very small business. We kind of took this leap of faith that it was going to go to where it was going to go. You know, I could have never hoped for these kinds of results. So we've been very fortunate that way.
Tom Gardner: So can you just describe/define for somebody who's now encountering Okta for the first time what is the Okta Identity Cloud, what does that mean?
Kerrest: Yeah, absolutely. So what we do today, very practically, is -- we help with two main things. We help in what we call workforce identity management, which is for employees, contractors, consultants. If you're a new employee, you come to the company, a very easy way for you to access all of your applications, whether they are cloud, whether they are on-premise, it's a very simple dashboard, it's a very easy way to go.
It could be two-factor authentication, which is a one-time SMS on your smartphone, so that you get that quick code to put in. So the idea is to improve the end user experience while also enhancing security, something that's never been done. In the past, it's always like, you jacked one up, the other one went down, or you flipped them around, but you could never get them both right. So we like to think, because, of course, we're perfect that we got them both right and that you can do both things.
What does that mean for IT? It means there's one central place they can manage all these things. So if I work for you, you let me go, there's one place you can take away access to all these publicly available internet services, so I can't go home and log into Salesforce and take the forecast across the street to the other guy. So that's the first business, workforce identity management. It's at scale, it's in large deployments, you know, large insurance companies, large parts of the government. Fortune 500 companies are deploying it to their employees and their contractors and their partners. It's on any device, since it's on the web, it's on any device, of course.
The second part of the business is customer identity management. So if you fly on JetBlue, you have a TrueBlue number, or if you go to MLB.com, you're one of 60 million consumers every year who logs in to watch their baseball games, or you have one of the 27 different properties at Albertsons, so retail chain that you go and shop at. We run the identity infrastructure for all of those, so that when you go to Albertsons, if you have three different parts of the Albertsons business that you actually buy from, you actually have one username, one password, one number, make it very easy for you. And on the backend, Albertsons can actually track Tom and say, "Oh, Tom shops at these three places, let's make it really easy for him to shop at this fourth one. Let's give him a bunch of coupons and things like that."
So those are the parts of the business. Some of them, in a lot of cases -- very transparent -- people don't even know that they're using the Okta service. Tens of millions of users are authenticating every day on the service now. So it's really starting to become a big part of the economy as we're out there. And we're fortunate, things have gone well.
Mann: And when you think about the single point of failure for any security situation, it is always the individual. So leaving the individual off the table for you, in some ways, creates different vulnerabilities for whatever systems you all are working with.
Kerrest: Yeah, that's totally right. I mean, if you look at these, you know, it's not like -- you know, when you get one of these unfortunate articles that are on the top of The Wall Street Journal, you open it, it's about the fold, so and so just got breached. It's not like hackers cracked AES 256-bit encryption. What happened is, one of the system administrators was using a weak password on some basic travel website, got compromised, they reused the password and got into a bunch of administrative credentials, and then bingo! they're in.
Now, that's not what happens all the time, but that's actually what happens a majority of the time. So you're totally right, and that's why, just like, basic password hygiene is just something that I cannot emphasize enough to all of your listeners. Just do the basic things, don't reuse passwords, use complex ones, use passphrases, just all those little tips and tricks, and then multifactor authentication.
I mean, multifactor authentication should be everywhere, it should be seamless. It's a very, very easy thing for people to do, and it really gets rid of all these types of problems.
Gardner: For somebody who has no idea what multifactor authentication means.
Kerrest: Yeah. So "multi," obviously, more than one factor for authentication. Very simple, when you go to the ATM machine, you have two factors, you have your card and you have your PIN. So it's usually something you know and something you have. So in this case, it's like when you go to your bank website; something you know, your bank password; and something you have, your telephone, where it sends you an SMS with six digits. That's a version of multifactor authentication.
Mann: I want to know about your podcast, Zero to IPO. So you were just --
Kerrest: I'm an accidental podcaster, yes.
Mann: Yeah, when we talked to you last time, you were just getting ready to start it. And I love it.
Kerrest: Thank you.
Mann: What are some of the things that you have learned from -- you've had amazing guests on. And I mean, not just necessarily from a profile perspective, but you've had incredibly interesting entrepreneurs come through. What are some of the main things that you are learning from them that you're reapplying to your work at Okta?
Kerrest: Yeah, [laughs] man, there's a lot of layers in that. I love the question, Bill. So the first thing is, Zero to IPO. I started getting a lot of, when we were fortunate -- when Okta went public, we were helped a lot by entrepreneurs who were ahead of us in the journey as we built Okta. So I wanted to make sure I was giving back. I'm on the Executive Advisory Board of the MIT Entrepreneurship Center. So I want to make sure that we're helping entrepreneurs. And I started getting the same question over and over as entrepreneurs would come to ask me. And so finally, I said, "Hey, you know what? Maybe I should just write a number of articles about this." And then people said, "Well, will you interview some folks?" So I became an accidental podcaster.
We did season one last year. We actually just kicked off season two with Eric Yuan from Zoom (NASDAQ: ZM) a couple of weeks ago. Season two is going to be rolling out through April, May, and June, so there's more coming there.
The idea is just to help everyone else debunk the myth of what happens in building these companies. And it feels like a lot of the information, first of all, I understand why, but the media tends to hype up massive success stories, like Elon Musk or Jeff Bezos, or the ones that are complete failures. And we don't have to go through the names, but where they lose hundreds of millions of dollars and there's fraud and all these other kinds of things.
And what the media -- and I understand why, they're trying to sell viewers -- but what happens to 99% of people right in the middle, no one ever talks about. And it's just day-to-day hard work, going to work, trying to get all these things going.
And you know, some of my favorite podcast episodes were when you hear from these people, like Carl Eschenbach, the famous guy who built VMware from 200 people to 20,000, who is known as being a go-to-market magician. And he tells you the story of when in 2004, before they even had iPhones or anything, he's sitting there with his rep trying to close one big deal at a big pharmaceutical company, and he had to just sit there all day. And he can't get the deal done and he's, like, the rep is starting to cry, "I got to go back to my wife," and you're, like, "What do you mean?" Like, this is the legend.
And so, what we just wanted to translate to everyone, and so what I took back too, Bill, which is a little bit comforting, is that it's hard for everyone all the time. And anyone who thinks that you can just read the press and it's up into the right and everyone's a hero, you're just being misled.
And so, half of the thing was, the folks who came on, and it was Patty McCord, who built the culture deck at Netflix, or Ben Horowitz talking about how he's trying to go public with three weeks of cash left or Andre Iguodala talking about how he practices for hitting the big shot. Because once in a while, you're going to have that big shot and you got to hit the big shot.
It's true for me now. Right when we go into earnings, that morning, when we're about to get on theearnings call Todd and I look at each other, with Bill our CFO and our Head of IR and we say, "this is a big shot, you got to hit the big shot, you got to get locked in, you got to get focused in." And you know, I'm just trying to help.
I think entrepreneurship is great. It's not a perfect equalizer, but it's a lot better than going and working in a large company. You have a lot of people who have the opportunity to start new companies in all sorts of different industries. And especially today, it's the driver of the economy. So the more that we can simplify and debunk the myth of entrepreneurship and just share it, I think it behooves us all to do that.
Hill: Verizon (NYSE: VZ) has entered the videoconferencing fray, gentlemen. Verizon this week bought BlueJeans network for less than $500 million. BlueJeans, unlike Zoom, Jason, they focus much more on the enterprise side of things. They've got 15,000 customers, including some pretty big companies out there. It really is going to be interesting to see how this all shakes out.
Moser: Yeah, Verizon CEO Hans Vestberg noted that they've been looking at BlueJeans for about a year and that he believes that Verizon's distribution will be a big advantage in helping grow that platform. Now, in theory, I agree. I mean, I think Verizon has phenomenal distribution and that there's a lot of potential there.
Again, we talk about Comcast and Peacock and maybe being a little bit late to the game. Granted, a lot of this kind of happened very quickly with coronavirus concerns, and Zoom has taken off because of it. I honestly think there is going to be a real branding problem here, though, with BlueJeans. I just don't know that people are going to work that into the conversation very, very well, like, "Hey, I'll BlueJeans you, all right?" "Hey, I'll see you on BlueJeans." I mean, there is potential there, but when we look at all of the progress Zoom has made thus far, privacy concerns notwithstanding -- they're digging into fixing that problem now -- but what they did early on was they took this market by storm and it's really become one of the phrases that pays here during this time. It's become a verb, right? "I'll Zoom you."
So I do understand the sentiment there. I think that competing on the commercial side makes more sense, but they have to figure out a way to propose a better value proposition. They need to come up with a better value proposition to convince a lot of those customers out there that are using Zoom today, why they should be using BlueJeans instead. I'm not certain that Verizon's distribution network cuts it, but we will see.
It seems like a relatively modest bet on the part of Verizon. I wouldn't be surprised to see this thing getting written down in a significant fashion over the course of the next year or two.
Gross: It is interesting for a company most of us haven't heard of and that is less than $500 million value. They do seem to have some real serious customers, whether it's Facebook or LinkedIn or Viacom, and the large banks, a lot of the ones we just mentioned earlier in the show appear to be customers as well. So it will be interesting if we get some user data at some point to see, kind of, how much penetration they have here.
Verizon also said they have some kind of a future in their 5G offering, I don't necessarily know what that would be, that would be interesting to watch as well.
But just on a step-back kind of a note, it's interesting to see one of these tuck-in acquisitions starting to happen. We've been wondering if M&A activity will pick up. I think we were largely talking about if that will happen among public companies and that BlueJeans is, obviously, private, but it's interesting to see Verizon putting some money to work here during a time when maybe BlueJeans valuation was down because the competition was heating up, hard to say, but I think we're going to continue to see lots of these little tuck-in acquisitions.
Moser: Well, I think that's a good point you make there, Ron, too, is this acquisition happening now. They can say they've been looking at it for the past year, but this may have been about as attractive an opportunity for BlueJeans as they were going to come across. I mean, you got to figure that, at this point, they're selling at a lower valuation than maybe they would have been a year ago --
Gross: ... or perhaps higher, because the space is hot, that's where the side of the trade [...]
Hill: Hey, real quick, before we get to the stocks on our radar. Ron, this week, Johnson & Johnson, Costco, Procter & Gamble, they all raised their quarterly dividend. Not a huge amount, you know, it was sort of in the range of 6% to 8%. But in this environment, when all these big companies are either keeping their dividends in place or cutting them back, I feel like this is going to be a badge of honor down the line.
Gross: It's a really strong signal to the market. It's showing not only is business strong right now and cash flow generation is strong right now, but our balance sheets are strong and we can continue to do this and not only continue, but increase them. Very strong signal to the market and to investors.
Hill: All right. Let's get to the stocks on our radar. Our man, zooming in, Steve Broido, will hit with the question. Jason Moser, you're up first. What are you looking at?
Moser: Yes. It's the world's largest music streaming platform. I'm taking a look at Spotify (NYSE: SPOT), ticker is SPOT. They have earnings coming out on April 29, and this is a stock we continue to follow here at The Fool in many of our services.
Monthly active users is one of the key metrics for Spotify. They recorded 271 million last quarter. That was 31% growth from a year ago. But the more important metric is actually the premium subscribers. Last quarter, they chalked up 124 million there, and that was 29% growth. And so I want to see how they're growing that premium subscriber base, particularly in the face of this stay-at-home economy, so to speak. This is a time when they should be shining.
But they make their money a couple of different ways. Advertising and subscriber fees make up the overwhelming majority of their revenue. And then finally, just want to give a little bit more insight as to how they view their acquisition of The Ringer family of podcasts, because they continue to tap this exponential growth in the podcast market, the opportunity there. And I tend to agree. I just want to see how they're exploiting it.
Hill: Steve, question about Spotify?
Steve Broido: Sure. What makes them different [from] all the other streaming providers?
Moser: Well, when they were competing against Pandora back in the day, it was more of a bespoke offering, which gave them a leg up. You could go in there, listen to anything you wanted on demand, and that ultimately is what gave them a leg up. And now, as users continue to listen, the technology recognizes what you're listening to, they have a very good recommendation engine and they've incorporated a lot more into the offering as well. So it's become more of an entertainment platform.
Hill: Ron Gross, what are you looking at?
Gross: Going back to CRISPR Therapeutics (NASDAQ: CRSP), CRSP, down 32% from its December 2019 high. Gene therapy company focusing on the CRISPR Cas9 technology to edit genes. Main partnership is with Vertex, a $69 billion pharmaceutical company, a good partner to have. Importantly, their balance sheet is solid $943 million cash, only $52 million in debt, and they've had some really promising early-stage data that they actually can cure sickle cell disease. So looking forward to seeing more of that.
Hill: Steve?
Broido: I'm a CRISPR shareholder, Ron. Do you see them playing a part in the COVID-19 solution?
Gross: Not in the near term, no. They would have to ramp up and start from scratch. So I think there are other folks who are much further along, and we should look to those folks for the next six months to a year innovations.
Hill: What you want to add, Steve?
Broido: I think I'll go with Spotify.
Moser: Hey, now.
Hill: All right. Ron Gross, Jason Moser, guys, thanks for being here.
Moser: Thank you.
Hill: That's going to do it for this week's show. I'm Chris Hill. Thanks for listening. We'll see you next week.
John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, is a member of The Motley Fool's board of directors. Chris Hill owns shares of Amazon, Johnson & Johnson, and Walt Disney. Jason Moser owns shares of Alphabet (C shares), Amazon, DocuSign, Shopify, Square, Teladoc Health, and Twitter. Ron Gross owns shares of Alphabet (C shares), Amazon, CRISPR Therapeutics, Facebook, Square, Verizon Communications, and Walt Disney. The Motley Fool owns shares of and recommends Alphabet (A shares), Alphabet (C shares), Amazon, CRISPR Therapeutics, Delta Air Lines, DocuSign, Facebook, Gilead Sciences, Netflix, Okta, Pinterest, Salesforce.com, Shopify, Southwest Airlines, Spotify Technology, Square, Teladoc Health, Twitter, Walt Disney, and Zoom Video Communications. The Motley Fool recommends Comcast, JetBlue Airways, Johnson & Johnson, Verizon Communications, and VMware and recommends the following options: long January 2021 $60 calls on Walt Disney, short May 2020 $120 calls on Zoom Video Communications, short September 2020 $70 puts on Square, short January 2022 $1940 calls on Amazon, and long January 2022 $1920 calls on Amazon. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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And earlier this week, Motley Fool CEO Tom Gardner and senior analyst Bill Mann talked with Frederic Kerrest, Okta's chief operating officer and one of the company's co-founders. I mean, there is potential there, but when we look at all of the progress Zoom has made thus far, privacy concerns notwithstanding -- they're digging into fixing that problem now -- but what they did early on was they took this market by storm and it's really become one of the phrases that pays here during this time. I mean, you got to figure that, at this point, they're selling at a lower valuation than maybe they would have been a year ago -- Gross: ... or perhaps higher, because the space is hot, that's where the side of the trade [...] Hill: Hey, real quick, before we get to the stocks on our radar.
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In this episode of Motley Fool Money, Chris Hill and Motley Fool analysts Jason Moser and Ron Gross discuss the rising stock market and the upcoming earnings season. The Motley Fool owns shares of and recommends Alphabet (A shares), Alphabet (C shares), Amazon, CRISPR Therapeutics, Delta Air Lines, DocuSign, Facebook, Gilead Sciences, Netflix, Okta, Pinterest, Salesforce.com, Shopify, Southwest Airlines, Spotify Technology, Square, Teladoc Health, Twitter, Walt Disney, and Zoom Video Communications. The Motley Fool recommends Comcast, JetBlue Airways, Johnson & Johnson, Verizon Communications, and VMware and recommends the following options: long January 2021 $60 calls on Walt Disney, short May 2020 $120 calls on Zoom Video Communications, short September 2020 $70 puts on Square, short January 2022 $1940 calls on Amazon, and long January 2022 $1920 calls on Amazon.
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In this episode of Motley Fool Money, Chris Hill and Motley Fool analysts Jason Moser and Ron Gross discuss the rising stock market and the upcoming earnings season. So there's nothing going on in those first couple of years other than building the software, trying to put the first team together, spending a lot of time with potential customers, or not even customers, because you don't have any customers, but just talking to people about what kinds of problems you would help them solve. I think we were largely talking about if that will happen among public companies and that BlueJeans is, obviously, private, but it's interesting to see Verizon putting some money to work here during a time when maybe BlueJeans valuation was down because the competition was heating up, hard to say, but I think we're going to continue to see lots of these little tuck-in acquisitions.
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Hill: The airline industry is getting a little bit of good news this week. Prices, obviously, are very, very low, as they should be, and if we can get back, let's call it a year or two from now or even three, gains, from a stock perspective, could be strong enough to make up for the time it will take to get us back on our feet here. The Motley Fool owns shares of and recommends Alphabet (A shares), Alphabet (C shares), Amazon, CRISPR Therapeutics, Delta Air Lines, DocuSign, Facebook, Gilead Sciences, Netflix, Okta, Pinterest, Salesforce.com, Shopify, Southwest Airlines, Spotify Technology, Square, Teladoc Health, Twitter, Walt Disney, and Zoom Video Communications.
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2020-04-22 00:00:00 UTC
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Why Oil Dropped So Suddenly
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AAL
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https://www.nasdaq.com/articles/why-oil-dropped-so-suddenly-2020-04-22
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In this episode of MarketFoolery, Mac Greer and Motley Fool analyst Emily Flippen talk about the latest market headlines, the oil industry, and what drives the financial behavior of airlines. There are also tech updates on the fight against COVID-19 and some gaming news. Finally, they have news from the cannabis industry and suggestions on how to shop for cannabis stocks right now and much more.
To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center. To get started investing, check out our quick-start guide to investing in stocks. A full transcript follows the video.
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This video was recorded on April 20, 2020.
Mac Greer: It's Monday, April 20th. Welcome to MarketFoolery. I'm Mac Greer, and joining me is Motley Fool analyst Emily Flippen. Emily, how are we doing this Monday?
Emily Flippen: I am hanging in there. It does not feel like a Monday, time is meaningless to me, but so far, my Monday has been alright.
Greer: Isn't that the truth, it's just day and night and maybe weekends. Do weekends feel at all different for you or is it just day and night?
Flippen: We've been doing so much livestreaming here at the Fool, that I'm livestreaming a lot on weekends, too. So, really, it's just day and night for me at this point.
Greer: OK. Well, this day, April 20th, 4/20, is a date of significance in some circles; and we're going to talk about that later, Emily, as we talk cannabis. And we'll also talk some Facebook (NASDAQ: FB); they've got a new gaming app among other things. But let's begin with the big picture.
Now, looking at the markets right here, Emily, the Dow really is not doing a lot, only down around 1% at the time of our taping, but the big headline, oil prices dropping to a 21-year low. Emily, of course, demand is way down and we've got these ongoing questions around when and how states might reopen. What do you make of it all?
Flippen: Yeah, it's amazing that the Dow hasn't gone down more than it is, because U.S. crude oil has fallen 83% since January alone. And the futures contracts that we're seeing in the market today, have fallen 41% today alone. So, there are serious concerns in the energy market, in the oil market, in particular, just because demand, like you mentioned, has fallen off a cliff. So, the true volatility we're seeing in the market today is because futures contracts are expiring on Tuesday and, more importantly, people are just concerned about where they're going to store oil.
So, when people hear that the price of oil has fallen, that might seem meaningless to you in your everyday life. But think about it this way, if you're a business or a consumer that uses oil, are you going to be buying it today or are you trying to predict when you're going to get back to work in the future and buying it in the future? And for most people, it is the latter. So, the fact that the price has fallen so much today is simply because nobody is using oil.
Greer: And let's talk oil stocks. Let's look at Halliburton (NYSE: HAL), an oil service company. They just reported better-than-expected profits. The stock is actually up today but they warned that their North American activity will decline sharply due to what you're just talking about. We've got oversupply and a massive drop in demand. So, does the investor in you at all find oil stocks intriguing right now?
Flippen: Not at all. In fact, Halliburton is probably going to be in for a really difficult quarter next quarter. Remember that when companies report, they're reporting on the previous quarter's basis. So, while it's better than expected, it's not to say that things are looking up for oil right now. Really, the concerns are really extensive for oil.
You know, the output cuts from OPEC nations aren't sufficient to cover just the lack of demand. I mean, they cut production by 10 million barrels a day, but demand on a daily basis has fallen by nearly 30 million barrels a day. And the Trump administration is apparently toying with the idea of paying producers to leave crude oil in the ground to prevent negative pricing in some areas of the country. So, that really is to say that I don't see oil investable right now until we see a timeline for when we might come out of this crisis. Right now, that's anyone's guess.
Greer: Well, Emily, let's talk airlines. United (NASDAQ: UAL) reporting a $2.1 billion loss, billion as in B, for the first quarter. Shares down around 4% at the time of our taping. Now, Emily, United says that it has applied for $4.5 billion in government loans and that's on top of another $5 billion in federal payroll grants and loans that it expects to receive. What do you make of United?
Flippen: It's not very often that we get stories about oil falling and then airlines also following, because one of the vital inputs for airlines is oil. And so, typically when the price of oil is low airlines are doing well, but this just shows the extent of the crisis that we're in. There is no demand for oil and there is no demand for airlines. United Airlines is the first airline to report, so it's a little bit unfair because we're missing the context of all the other major airlines, but it is to say the financial situation that these airlines are in are extremely dire. The reason why they're looking for so much federal aid is because they've been mismanaging their cash positions historically, taking on a ton of debt, buying back stock at all-time highs, it's really exacerbated a really difficult financial situation for these companies, United included.
Greer: So, Emily when you look at the airline industry going forward, do you think we're going to see even more consolidation? Because to the point you just made, I mean, I understand that some of the airlines have been mismanaged, but I also understand that it's really, really tough to run an airline during a pandemic. So, how does this shake out going forward?
Flippen: It's extremely challenging. The federal government and the average American consumer has a vested interest in two things: one, keeping airlines operating for travel needs. I mean, travel doesn't cease to exist in the future, we need airlines to provide a vital service, but we also want those airlines to remain competitive with each other. You know, it wasn't that long ago that airlines were essentially a national industry in the U.S. and prices were much higher because the industry wasn't competitive. So, the more airlines the better. We don't want to see airlines going out of business.
And the reason why airlines have been so reckless with their spending in the past is because they are acutely aware of the fact that they are a vital business, that the federal government and the American consumers wouldn't allow them to go out of business. It still is challenging for them, though. I think that they will likely get the aid that they're seeking for exactly that reason. I mean, it hurts the consumer, it hurts the average person and America way more when these companies go out of business than it will be to bail them out.
Greer: OK, Emily, I have asked you this question before, in fact, it was a few months ago. But the world has changed, so I've got to ask you again. Do you have a favorite airline stock?
Flippen: I don't really like fishing in lakes that have been so polluted like airlines have been. Is that a bad analogy?
Greer: No. We're going to go with it; we'll go with it.
Flippen: [laughs] That's great. I will say there is one fish that looks attractive to me, a well-managed airline, Southwest Airlines, ticker LUV, has been a really attractive and well managed airline, much better cash-to-debt position than all the other major airlines. Management has been much more open and transparent during this crisis than American, than United, than arguably Delta, but their financial position has just been much stronger than the others.
So, again, I'm not going out and dying to buy shares of Southwest, but if I was committed to buying in airlines, and I'm not saying I am, but if I was, at this point Southwest is what I'd be interested in.
Greer: OK, Emily, let's talk Facebook. A couple of interesting stories here. On Monday, Facebook releasing a map that shows how many people are reporting COVID-19 symptoms across the U.S. on a county-by-county level. Now, we should underscore that those are symptoms, those aren't necessarily people who have tested positive. The map will be updated daily and is designed to help health officials allocate resources and it's also designed to help officials decide what parts of society can be reopened and when. The data is gathered by Carnegie Mellon. And Facebook says that only Carnegie Mellon researchers see the individual survey responses.
So, Emily, this feels encouraging. It feels like this could be a nice -- I mean, we maybe, maybe, maybe could start to understand the spread of the virus a little more thanks to Facebook.
Flippen: [laughs] We had different reads on that story, I will say that. It's not a bad thing, more data is obviously better. But Facebook itself isn't collecting this data, they're very open about that, it's a survey done by Carnegie Mellon. And not only is survey not the best way to get a sense about the spread of this virus, but it's delayed, it's belated. I mean, Microsoft's Bing, for instance, has had a robust COVID tracker available online for weeks now, I think, maybe upwards of a month now, with way more granular data that goes down to further than the county level, tracks cases of fatalities, recovered. What I think is really interesting about Facebook's approach is that it's tracking symptoms.
So, the real value to me here isn't, if you're an average person trying to get a sense about the spread of coronavirus in your relative area, I think Microsoft's Bing COVID tracker is much better for that. But for people who are looking to get a sense about the spread of it beyond just those that have been tested, tracking symptoms is the best way to do that.
Testing in the U.S. has clearly not been up to par, so tracking symptoms, while not really great data for you to base your life upon -- don't be going out just because Facebook says that your county has less symptoms than others -- it is a great idea to track the sense about the spread of the virus for those who have no access to testing.
Greer: OK. But it sounds like you think I should contain my enthusiasm, because I think you might have just compared Facebook and Microsoft Bing, and do you know anyone who uses Microsoft Bing?
Flippen: [laughs] That's a really great point. I will say this, I have not used Bing for -- I mean, I don't think I've ever used Bing except for their COVID tracker. So, I will give props where props are due. Microsoft has done a great job in tracking that data, in my opinion much better than Google's Map. Google's Map is hilariously lacking insight and lacking detail in comparison to Bing's. But I do not use Bing to look at places to get food, [laughs] for instance.
Greer: But to your point, this does seem like a powerful combination. If you got Carnegie Mellon doing the surveys and doing the research and gathering the data, and then you have Facebook with its ubiquity, right? With its ubiquitous platform, doesn't that give you some hope?
Flippen: Ubiquitous/notorious, what's the difference, really? No, it does. Again, the more data that we have, the better. I will just say, tracking symptoms is different from tracking cases. And if you look at Facebook's COVID map, it really does lack detail, because survey results are inherently small and lacking in detail. A lot of the counties that Microsoft, for instance -- Microsoft's Bing tracker shows dramatic differences in number of cases -- show up in Facebook's COVID tracker as the same color, right? The same rate of symptoms, when in reality it's probably very different.
Greer: OK. So, you're saying, it feels like I need to kind of dial back my optimism.
Flippen: Well, it's too early to tell, but I'll be keeping my eye on both. How about that? Compare both of them to each other and use that to form your basis.
Greer: OK. Fair enough. Well, in other developments, Facebook on Monday introducing its Facebook Gaming mobile app. Now, Facebook says that more than 700 million monthly users already engage with gaming content. But Emily, this is a crowded space. We've got Amazon's Twitch, we've got Google's [Alphabet] YouTube, Microsoft's Mixer, just to name a few. What do you think about Facebook Gaming?
Flippen: Facebook always seems to feel like 10 to 20 years behind the curve. I don't know if that's my millennial opinion, but the fact that Facebook is just now coming out with a gaming app, it's like they're looking back in the past decade and saying, what's been big? Gaming. Maybe we should do something there. [laughs]
So, I wish I could say that I was surprised; I'm not. I will say that they're really late to the game. I mean, as you mentioned, Amazon's Twitch, Microsoft's Mixer, these dominate in-app purchase revenue right now. Facebook isn't even on the board. So, what they're going to have to do is one of two things, convince people who have been using different platforms to move to Facebook Gaming or cart out an entirely unique niche for just app-based social gaming for your connections. And maybe there's an opportunity there, right? But I think it's silly if they're trying to go up against a platform like Twitch or Mixer.
Greer: And, Emily, let's wrap up with the story that we mentioned at the top of the show. It is April 20th or 4/20. So, for those who are not well versed in the significance of 4/20, first of all, do tell.
Flippen: Yes. 4/20 is, I'll say, a cannabis holiday, if there is such a thing. I think, maybe the cannabis industry is a constant holiday for its core customers, but it became, kind of, a code for cannabis youth in the 1970s in California. Essentially it just became code for let's go out and let smoke, right? So, it's a long story about how it came to be the high schoolers, maybe a group of Grateful Dead fans -- if you're interested, I'd definitely recommend google searching it. But essentially what it means is now as an industry 4/20 is the day that everybody goes out and consumes their cannabis products; or at least it used to be before this pandemic.
Greer: OK. So, let's talk cannabis, let's talk about the future of the industry. Cannabis stocks have just gotten absolutely crushed over the last year. Cannabis, despite being legal in a number of states, still illegal under federal law, and that's what I want to ask you about, Emily. Does the economic crisis we're in and the pandemic, do you think it accelerates the timetable for legalization at the federal level?
Flippen: Short answer, no, I don't. I do think it depends on how protracted this pandemic will be. I think if the financial situation for a lot of these states becomes increasingly dire, then maybe that puts some winds in the sail of the legalization movement.
But we've seen challenges on the state level over the past year or so to get states that agree that cannabis should be recreationally legal, fight over the tiny details of how to implement that policy. And amid this pandemic, we're not only seeing a lack of legislation be passed on the state level, but a reluctance to make big statewide decisions when times are so troubling.
So, while the tax revenue from cannabis legalization could be really great for a lot of these states, I think, ultimately, the details and the process of trying to pass legalization measures will be extremely challenging. Again, it does depend on the state. If you look at a country state like Oklahoma, which was in desperate financial need of tax revenue, they legalized medicinal cannabis really quickly and really leniently, because they needed that revenue, they were in a horrible financial situation.
Other states like New Jersey wanted it to be legal, but didn't really need the tax revenue and proceeded to bicker over the details for a year and ultimately not pass any legislation. So, it depends on the state level, but I don't see the majority of states being in such dire financial stress, like Oklahoma was, to pass legislation as a result of this pandemic.
Greer: OK. So, with that in mind, if I'm an investor or a potential investor looking at cannabis stocks, what should I be watching going forward? Is there a single event or a trigger or something that you're looking at?
Flippen: Long term, obviously, federal legalization would be the single biggest event that any cannabis investor could hope for. It does seem like that isn't on the short-term horizon, what I would say is if you're interested in investing in the space and you don't have to be, you know, there's no reason to say that every investor should need to get some level of cannabis exposure the way they do healthcare exposure or tech exposure, but if you're interested look at the company's financial situation. All of that information should be available on their own websites, with the SEC, with EDGAR. That resource is available to you.
And most of these cannabis companies are in such a bad financial position that they don't even have enough cash to last them a few months, nonetheless through a pandemic. So, take the time to research the companies, understand their financial position more, how much cash they have, how much debt they have before investing.
Greer: Just to wrap up here, Emily. I confess that when we were Slacking about the show, I did some online research about 4/20, because I had wondered where the name came from. And, you know, there are so many competing stories about the 4/20 and whether it's legal code, but it sounds like the one that most people do land on is that it was the gathering time, 4:20 p.m., for some California students to engage in marijuana use. Do you think -- is that the explanation or is that still up for debate?
Flippen: I think it is. I also spend a little bit of time researching it and it is still widely debated. Obviously, the number 4/20, people say it comes from Bob Dylan songs. They're coming from the fact that it's the police code for smoking pot. But the true story, courtesy of The New York Times, seems to be that group of high school students, like you said, Mac, that gained traction when they then began to socialize with Grateful Dead fans. And then, in 1990, a group of Grateful Dead fans then started circulating flyers saying that everybody on April 20th at 4:20 p.m. should start to consume cannabis. And it really just caught fire since then.
Greer: So, I've got to ask, as we wrap up here, at 4:20 p.m., when you were in high school, what are you doing? What's your typical 4:20 p.m. activity in high school?
Flippen: [laughs] Well, I think school's over by that chance, which means that I was likely in debate club, preparing debate. I was not a particularly partaking high school student.
Greer: No, I knew, I knew, I knew that's why I asked you that question, because I knew you were doing something productive and constructive, unlike me, I got to say I was probably watching Gilligan's Island, which was just --
Flippen: Sounds productive to me.
Greer: It is. But 4/20 was, like, the part, it was the end of the show where you think they're finally going to get off the island and then they never ever get off the island. So, it's just crushing -- it's just absolutely crushing.
So, speaking of islands, the desert island poll. Over the next five years, Emily, you've got to own one of these stocks, let's give you a basket for oil stocks. So, you've got a basket of oil stocks, United Airlines, Southwest Airlines, Facebook or have about a basket of cannabis stocks.
Flippen: Well, the contrarian inside of me wants to say a company like Southwest. But speaking of the fact that it is 4/20 and I am the lead advisor of our cannabis portfolio, I will say, if that basket of cannabis companies are preapproved by myself, I think a basket of cannabis companies at this point really does make sense for a prudent, really long-term investor. The values that we're seeing today in the market are hilariously cheap in comparison to where they were just a few years ago.
Greer: And do you have a few names for that basket? I'm not going to hold you to this, but if you had, you know, a couple of big names?
Flippen: Yeah. Actually, all the big names I would recommend avoiding. I think most of the cannabis companies that the average investor has heard about are probably not worth investing in. I would advise people to look toward U.S.-based multistate operators that are in strong financial positions.
Greer: OK. Well, Emily Flippen, thanks for joining me.
Flippen: Thanks for having me.
Greer: As always, people on the show 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 it for this edition of MarketFoolery. The show is mixed by Dan Boyd. I'm Mac Greer. Thanks for listening, and we will see you tomorrow.
John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, is a member of The Motley Fool's board of directors. Emily Flippen has no position in any of the stocks mentioned. Mac Greer owns shares of Alphabet (C shares), Amazon, Facebook, and Microsoft. The Motley Fool owns shares of and recommends Alphabet (A shares), Alphabet (C shares), Amazon, Delta Air Lines, Facebook, Microsoft, and Southwest Airlines and recommends the following options: long January 2021 $85 calls on Microsoft, short January 2021 $115 calls on Microsoft, short January 2022 $1940 calls on Amazon, and long January 2022 $1920 calls on Amazon. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In this episode of MarketFoolery, Mac Greer and Motley Fool analyst Emily Flippen talk about the latest market headlines, the oil industry, and what drives the financial behavior of airlines. The reason why they're looking for so much federal aid is because they've been mismanaging their cash positions historically, taking on a ton of debt, buying back stock at all-time highs, it's really exacerbated a really difficult financial situation for these companies, United included. I mean, Microsoft's Bing, for instance, has had a robust COVID tracker available online for weeks now, I think, maybe upwards of a month now, with way more granular data that goes down to further than the county level, tracks cases of fatalities, recovered.
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In this episode of MarketFoolery, Mac Greer and Motley Fool analyst Emily Flippen talk about the latest market headlines, the oil industry, and what drives the financial behavior of airlines. A lot of the counties that Microsoft, for instance -- Microsoft's Bing tracker shows dramatic differences in number of cases -- show up in Facebook's COVID tracker as the same color, right? The Motley Fool owns shares of and recommends Alphabet (A shares), Alphabet (C shares), Amazon, Delta Air Lines, Facebook, Microsoft, and Southwest Airlines and recommends the following options: long January 2021 $85 calls on Microsoft, short January 2021 $115 calls on Microsoft, short January 2022 $1940 calls on Amazon, and long January 2022 $1920 calls on Amazon.
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In this episode of MarketFoolery, Mac Greer and Motley Fool analyst Emily Flippen talk about the latest market headlines, the oil industry, and what drives the financial behavior of airlines. So, you've got a basket of oil stocks, United Airlines, Southwest Airlines, Facebook or have about a basket of cannabis stocks. The Motley Fool owns shares of and recommends Alphabet (A shares), Alphabet (C shares), Amazon, Delta Air Lines, Facebook, Microsoft, and Southwest Airlines and recommends the following options: long January 2021 $85 calls on Microsoft, short January 2021 $115 calls on Microsoft, short January 2022 $1940 calls on Amazon, and long January 2022 $1920 calls on Amazon.
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In this episode of MarketFoolery, Mac Greer and Motley Fool analyst Emily Flippen talk about the latest market headlines, the oil industry, and what drives the financial behavior of airlines. Greer: And let's talk oil stocks. Greer: Well, Emily, let's talk airlines.
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6023.0
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2020-04-22 00:00:00 UTC
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Why Airline Shares Are Down Today
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AAL
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https://www.nasdaq.com/articles/why-airline-shares-are-down-today-2020-04-22
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What happened
Airline shares were under pressure Wednesday after Delta Air Lines (NYSE: DAL) became the first in the sector to post first-quarter results. Delta actually lost less money in the quarter than analysts had anticipated, but the airline was clear that things have only gotten worse since the first quarter ended.
Shares of Delta were down 4% as of 2:30 p.m. EDT, while shares of airlines deemed more vulnerable went down further -- American Airlines Group (NASDAQ: AAL) and Spirit Airlines (NYSE: SAVE) were both down more than 7%.
So what
Before markets opened Wednesday, Delta reported a first-quarter loss of $0.51 per share on revenue of $8.6 billion, compared to analyst expectations for a $0.70-per-share loss on sales of $8.9 billion. We came into earnings season knowing that airlines were likely to report massive losses due to the COVID-19 pandemic, but investors are interested in hearing what the companies say about their outlook for the future.
Delta sees no quick turnaround, saying it expects to bring total capacity down by 85% (year over year) by June. The company is also selling fewer seats on the flights it is flying to promote social distancing, which means preventing passengers from sitting in middle seats.
Image source: Delta Air Lines.
Delta is also making progress on the cost side, forecasting that total expenses in the second quarter will be down about 50% due to reduced flying and subsequent fuel savings, as well as consolidating airport facilities and temporarily closing airport lounges. It's also benefiting from 37,000 employees opting to take short-term unpaid leave, and from executive pay reductions.
The airline was burning through about $100 million per day in March, but hopes to have that burn rate moderate to about $50 million per day by the end of June. On a postearnings callwith investors, CEO Ed Bastian said Delta is preparing for an extended downturn, saying it could take up to three years before travel recovers.
There was no company-specific news from either American or Spirit, but both airlines are seen as far more vulnerable to an extended downturn than Delta is. American has the industry's highest debt load, and would be hitting a recession with its transformation plan still in its early stages. Spirit also has substantial debt relative to its peers, and so far has not secured funding from the payroll-protection part of the $50 billion airline bailout package.
Now what
Relative to expectations, I'd argue Delta's earnings report wasn't all that bad. We knew results would be terrible, but the company did a decent job laying out its path forward, and made a credible argument that it can survive this pandemic without a liquidity crisis.
But Delta came into this crisis one of the healthiest companies in the business, and just because it has the wherewithal to survive doesn't mean that's true of all industry participants. I'm hopeful American, Spirit, and all the airlines can avoid serious issues, but Delta paints a grim picture for the next few years. Until we see clear signs the pandemic is contained and travel begins to normalize, these stocks are likely to remain under pressure.
10 stocks we like better than Delta Air Lines
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Delta Air Lines wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of April 16, 2020
Lou Whiteman owns shares of Delta Air Lines and Spirit Airlines. The Motley Fool owns shares of and recommends Delta Air Lines and Spirit Airlines. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shares of Delta were down 4% as of 2:30 p.m. EDT, while shares of airlines deemed more vulnerable went down further -- American Airlines Group (NASDAQ: AAL) and Spirit Airlines (NYSE: SAVE) were both down more than 7%. What happened Airline shares were under pressure Wednesday after Delta Air Lines (NYSE: DAL) became the first in the sector to post first-quarter results. We came into earnings season knowing that airlines were likely to report massive losses due to the COVID-19 pandemic, but investors are interested in hearing what the companies say about their outlook for the future.
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Shares of Delta were down 4% as of 2:30 p.m. EDT, while shares of airlines deemed more vulnerable went down further -- American Airlines Group (NASDAQ: AAL) and Spirit Airlines (NYSE: SAVE) were both down more than 7%. What happened Airline shares were under pressure Wednesday after Delta Air Lines (NYSE: DAL) became the first in the sector to post first-quarter results. So what Before markets opened Wednesday, Delta reported a first-quarter loss of $0.51 per share on revenue of $8.6 billion, compared to analyst expectations for a $0.70-per-share loss on sales of $8.9 billion.
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Shares of Delta were down 4% as of 2:30 p.m. EDT, while shares of airlines deemed more vulnerable went down further -- American Airlines Group (NASDAQ: AAL) and Spirit Airlines (NYSE: SAVE) were both down more than 7%. 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 Delta Air Lines and Spirit Airlines.
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Shares of Delta were down 4% as of 2:30 p.m. EDT, while shares of airlines deemed more vulnerable went down further -- American Airlines Group (NASDAQ: AAL) and Spirit Airlines (NYSE: SAVE) were both down more than 7%. So what Before markets opened Wednesday, Delta reported a first-quarter loss of $0.51 per share on revenue of $8.6 billion, compared to analyst expectations for a $0.70-per-share loss on sales of $8.9 billion. See the 10 stocks *Stock Advisor returns as of April 16, 2020 Lou Whiteman owns shares of Delta Air Lines and Spirit Airlines.
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6024.0
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2020-04-21 00:00:00 UTC
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Better Buy: Delta Air Lines vs. Southwest Airlines
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AAL
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https://www.nasdaq.com/articles/better-buy%3A-delta-air-lines-vs.-southwest-airlines-2020-04-21
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It would be a mammoth understatement to say that the past two months have been challenging for airline stocks. America's two largest airlines by market capitalization, Southwest Airlines (NYSE: LUV) and Delta Air Lines (NYSE: DAL) have watched their share prices tumble as the number of people traveling by air has dropped precipitously. According to the Transportation Security Administration, daily U.S. passenger numbers have fallen to less than 5% of their levels a year ago.
Yet while the S&P 500 has regained 13% in April due to optimism that U.S. companies broadly will be able to survive and recover from the impact of the COVID-19 pandemic, shares of Southwest and Delta have sunk back down to near their 5-year lows.
Strong fundamentals and customer loyalty make Southwest and Delta, in my opinion, the two best U.S. airlines. And given the unprecedented predicament airlines find themselves in, it's worth taking a closer look at whether either can survive this crisis, and if so, which one is better positioned for a comeback.
Image Source: Getty Images.
Industry headwinds
There are several headwinds facing airlines at the moment. First, the industry is likely to be one of the last to fully recover from the pandemic shutdown.
On the existential side, companies are adapting to a "new normal" of working from home and communicating via streaming video meetings. That widespread adoption of virtual meetings could lead to a paradigm shift that reduces the desire for face-to-face business meetings. The fewer in-person meetings, site visits, plant visits, industry conferences, etc., there are, the less revenue there will be for the airline industry.
Warren Buffet was long an opponent of investing in airlines, but a few years ago, he began to see value in the industry. In 2016, he bought stakes in Southwest, Delta, and two other airlines, and added 5 million shares to his Delta position in 2019. But in early April, he sold large portions of his Southwest and Delta holdings.
One silver lining is that current low oil prices mean lower jet fuel prices, but many airlines hedge their jet fuel purchase, so oil would have to remain low for some time for the airline industry to see a significant benefit.
Southwest Airlines
Last year was a great demonstration of how solid management and a great balance sheet can help a company manage through rough times. "This is our 49th year and there, at least in my experience, there is no more remarkable year than 2019," said Southwest CEO Gary Kelly.
Southwest was still able to deliver record earnings per share of $4.27 despite the fact that the Boeing (NYSE: BA) 737 MAX groundings persisted through nearly 10 months of 2019 and cost the airline $828 million in operating income. Southwest's entire fleet is comprised of Boeing aircraft and it has more 737 MAX planes in its fleet than any other airline.
Southwest has a history of financial strength and a reputation for maintaining a rock-solid balance sheet. Its fundamentals, consistent performance, and low P/E ratio have historically made it a premier value stock.
Though there were a number of airline bankruptcies in the early and mid-2000s, including United Airlines (NASDAQ: UAL) and Delta Air Lines, followed by American Airlines (NASDAQ: AAL) in 2011, Southwest has remained profitable for 46 consecutive years.
Despite its struggles in 2019, Southwest entered 2020 with the healthiest balance sheet among the six major U.S. airlines -- the lowest debt-to-capital ratio, the second-lowest debt-to-equity ratio, and the lowest total net long-term debt. That strength compared to Delta in this regard is more important than ever, as it gives Southwest more liquidity and flexibility with which to weather the present storm.
LUV Debt to Capital (Annual) data by YCharts
However, Southwest's financial position has deteriorated in the past few months, and the full extent of that regression won't be known until the company reports earnings on April 23. In the meantime, Southwest's April 14 bailout agreement with the U.S. government should provide it with the liquidity it needs during the next few months.
"Southwest will receive the funding support necessary to protect the jobs of its more than 60,000 Employees through at least September 30, 2020, with the fundamental goal to maintain the carrier's unprecedented 49-year history absent a single involuntary furlough," the company said in a press release.
Southwest will receive disbursements of more than $3.2 billion -- $2.3 billion in grants to support payroll, and $1 billion in unsecured low-interest rate loans, all backed by warrants that would dilute Southwest shares if exercised.
Southwest has reduced its planned flight activity by more than 40% for the period from May 3 to June 5 and nearly 50% from June 6 to June 27.
Delta Air Lines
Delta Air Lines just completed a banner decade full of record-breaking results and improving economics. It did an impressive job of shedding its image as a stodgy legacy airline with mediocre customer service and gaining a reputation as an efficient operator with an attractive frequent-flyer program.
In the past five years, Delta raised its dividend by nearly 350%, the largest increase among the major U.S. airlines. Both on a percentage basis and in terms of absolute values, Delta grew its net income and free cash flow (FCF) more than Southwest, United, or American Airlines over the past three years. In short, Delta was the elite cash-cow of the industry.
DAL Net Income (TTM) data by YCharts
However, though its financial picture is decent, it's inferior to that of Southwest, which leaves it more susceptible to the economic ramifications of the COVID-19 pandemic. In an April 3 memo to employees, CEO Ed Bastian stated that "Delta is burning more than $60 million in cash every day, we know we still haven't seen the bottom."
The airline's April flight schedule is now "80 percent smaller than originally planned, with 115,000 flights canceled," he said. Bastian also noted that the company forecasts its second-quarter revenue will decline by 90% as the full brunt of the economic shutdown hits the industry.
Given that Delta was in worse financial shape than Southwest, it shouldn't be surprising that it took more aid from the government bailout. "The agreement with [the] Treasury includes $5.4 billion from the payroll support program. The payment includes an unsecured 10-year low-interest loan of $1.6 billion, and Delta will provide the government with warrants to acquire about 1 percent of Delta stock at $24.39 per share over five years," the company said.
The winner
Southwest's track record of earnings growth and capital discipline and Delta's successful turnaround into an elite cash-flow and profit-generating machine are part of what made each of them top-tier players in their industry.
While you could argue Delta would be the better buy under normal circumstances, the coronavirus pandemic has discounted the value of airline's operational efficiencies and amplified the importance of financial strength. For that reason, Southwest is the better buy. The airline's strong operations and undisputedly best financials make it the ideal way to play a long-term rebound in the airline industry. However, paradigm shifts that reduce business travel and encourage remote conferencing, as well as a gradual and painful opening of the U.S. economy will mean Southwest's rebound will take some time.
With the right amount of patience, Southwest looks like a compelling investment.
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
Daniel Foelber owns shares of Delta Air Lines and Southwest Airlines. The Motley Fool owns shares of and recommends Delta Air Lines and Southwest Airlines. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Though there were a number of airline bankruptcies in the early and mid-2000s, including United Airlines (NASDAQ: UAL) and Delta Air Lines, followed by American Airlines (NASDAQ: AAL) in 2011, Southwest has remained profitable for 46 consecutive years. LUV Debt to Capital (Annual) data by YCharts However, Southwest's financial position has deteriorated in the past few months, and the full extent of that regression won't be known until the company reports earnings on April 23. "Southwest will receive the funding support necessary to protect the jobs of its more than 60,000 Employees through at least September 30, 2020, with the fundamental goal to maintain the carrier's unprecedented 49-year history absent a single involuntary furlough," the company said in a press release.
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Though there were a number of airline bankruptcies in the early and mid-2000s, including United Airlines (NASDAQ: UAL) and Delta Air Lines, followed by American Airlines (NASDAQ: AAL) in 2011, Southwest has remained profitable for 46 consecutive years. America's two largest airlines by market capitalization, Southwest Airlines (NYSE: LUV) and Delta Air Lines (NYSE: DAL) have watched their share prices tumble as the number of people traveling by air has dropped precipitously. One silver lining is that current low oil prices mean lower jet fuel prices, but many airlines hedge their jet fuel purchase, so oil would have to remain low for some time for the airline industry to see a significant benefit.
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Though there were a number of airline bankruptcies in the early and mid-2000s, including United Airlines (NASDAQ: UAL) and Delta Air Lines, followed by American Airlines (NASDAQ: AAL) in 2011, Southwest has remained profitable for 46 consecutive years. America's two largest airlines by market capitalization, Southwest Airlines (NYSE: LUV) and Delta Air Lines (NYSE: DAL) have watched their share prices tumble as the number of people traveling by air has dropped precipitously. See the 10 stocks *Stock Advisor returns as of April 16, 2020 Daniel Foelber owns shares of Delta Air Lines and Southwest Airlines.
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Though there were a number of airline bankruptcies in the early and mid-2000s, including United Airlines (NASDAQ: UAL) and Delta Air Lines, followed by American Airlines (NASDAQ: AAL) in 2011, Southwest has remained profitable for 46 consecutive years. Southwest has a history of financial strength and a reputation for maintaining a rock-solid balance sheet. While you could argue Delta would be the better buy under normal circumstances, the coronavirus pandemic has discounted the value of airline's operational efficiencies and amplified the importance of financial strength.
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6025.0
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2020-04-21 00:00:00 UTC
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BUZZ-U.S. STOCKS ON THE MOVE-Energous, Hertz Global, PAVmed
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AAL
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https://www.nasdaq.com/articles/buzz-u.s.-stocks-on-the-move-energous-hertz-global-pavmed-2020-04-21
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nan
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Eikon search string for individual stock moves: STXBZ
The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi
The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh
Wall Street retreated for a second straight day on Tuesday as a collapse in U.S. crude prices and glum annual forecasts by companies foreshadowed the biggest economic slump since the Great Depression due to the coronavirus outbreak. .N
At 13:05 ET, the Dow Jones Industrial Average .DJI was down 2.73% at 23,005.21. The S&P 500 .SPX was down 3.20% at 2,732.75 and the Nasdaq Composite .IXIC was down 3.78% at 8,237.299. The top three S&P 500 .PG.INX percentage gainers: ** FLIR Systems Inc , up 7.6% ** Equifax Inc , up 3.5% ** Carrier Global Corp , up 2.9% The top three S&P 500 .PL.INX percentage losers: ** Fortinet Inc , down 10.9% ** Freeport-McMoran Inc , down 7.6% ** Oneok Inc , down 7.3% The top three NYSE .PG.N percentage gainers: ** DB Crude Oil Double Short ETN , up 82.1% ** ProShares UltraShort Bloomberg Crude Oil , up 58.2% ** SilverBow Resources Inc , up 25.6% The top three NYSE .PL.N percentage losers: ** ProShares UltraShort Bloomberg Crude Oil , down 46.8% ** Ipath S&P GSCI Crude Ol ETN , down 46% ** UBS ETRACS S&P GSCI Crude Oil Total Return Index ETN , down 43.9% The top three Nasdaq .PG.O percentage gainers: ** TORM Plc Ord , up 373.7% ** Energous Corp , up 207.7% ** Peck Company Holdings Inc , up 54.7% The top three Nasdaq .PL.O percentage losers: ** Cyclacel Pharmaceuticals Inc , down 52.4% ** Summit Semiconductor Inc , down 45.5% ** Kelly Services Inc , down 26.6% ** United Airlines Holdings Inc UAL.O: up 0.4% ** Delta Air Lines DAL.N: down 2.7% ** American Airlines Groups Inc AAL.O: down 2.4% ** Southwest Airlines LUV.N: down 2.9% ** Alaska Air Group Inc ALK.N: down 3.0% ** JetBlue Airways Corp JBLU.O: down 2.2%
BUZZ-U.S. carriers: Perfect time to benefit from cheap oil, only if demand returns ** Cinedigm Corp CIDM.O: up 24.5%
BUZZ-Cinedigm Corp: Jumps on higher monthly active viewers ** Centogene NV CNTG.O: up 7.8%
BUZZ-Centogene rises after launching COVID-19 detection kit ** HCA Healthcare Inc HCA.N: down 4.0%
BUZZ-HCA Healthcare withdraws 2020 forecast on coronavirus uncertainty, shares slip ** Beyond Meat Inc BYND.O: up 7.1%
BUZZ-Beyond Meat jumps as teams with Starbucks in China ** Summit Wireless Technologies Inc WISA.O: down 45.5%
BUZZ-Summit Wireless: Drops on second Nasdaq non-compliance notice ** Vaxart Inc VXRT.O: up 30.0%
BUZZ-Vaxart Inc: Surges on positive preclinical data from potential COVID-19 vaccines ** Cyclacel Pharmaceuticals Inc CYCC.O: down 52.4%
BUZZ-Cyclacel Pharma dives on deep discounted stock offering ** Newmont Corp NEM.N: down 2.0% ** Barrick Gold Corp GOLD.N: down 1.7% ** Kirkland Lake Gold Ltd KL.N: down 1.8% ** Yamana Gold Inc AUY.N: down 1.8% ** AngloGold Ashanti AU.N: down 1.1% ** Harmony Gold HMY.N: down 4.4%
BUZZ-Gold miners fall as oil rout prompts panic selling ** Goldman Sachs Group Inc GS.N: down 3.0% ** JPMorgan Chase & Co JPM.N: down 1.8% ** Citigroup Inc C.N: down 5.3% ** Wells Fargo & Co WFC.N: down 3.5% ** Bank of America Corp BAC.N: down 3.2% ** Morgan Stanley MS.N: down 3.3%
BUZZ-U.S. big banks fall on lower treasury yields as crude crash drives bond appeal ** PAVmed Inc PAVM.O: up 14.5%
BUZZ-PAVmed jumps as FDA approves carpal tunnel syndrome treatment device ** Hexcel Corp HXL.N: down 7.7%
BUZZ-Hexel Corp: Falls after results miss as coronavirus hits demand ** VF Corp VFC.N: down 4.4%
BUZZ-VF Corp: Falls as preliminary FY 2020 revenue disappoints ** ATyr Pharma Inc LIFE.O: up 3.9%
BUZZ-ATyr Pharma Inc: Rises on FDA nod to further test lung treatment for COVID-19 ** Teekay Corp TK.N: up 7.4% ** Nordic American Tanker Ltd NAT.N: up 7.1% ** Scorpio Tankers Inc STNG.N: up 2.8% BUZZ-Tanker stocks rise as oil traders rush for storage amid supply glut ** International Business Corp IBM.N: down 3.6% BUZZ-IBM falls on 2020 forecast withdrawal due to coronavirus pandemic ** Hertz Global Holdings Inc HTZ.N: down 7.1% BUZZ-Hertz Global Holdings: Cuts 10,000 jobs as bookings fall, shares drop ** Exxon Mobil Corp XOM.N: down 0.5% ** Chevron Corp CVX.N: down 2.3% ** Whiting Petroleum Corp WLL.N: up 16.7% ** Marathon Oil Corp MRO.N: down 1.2% ** Occidental Petroleum Corp OXY.N: down 3.4% ** Diamondback Energy Inc FANG.O: down 1.5% ** Pioneer Natural Resources Co PXD.N: down 1.5% ** ConocoPhillips COP.N: down 4.2% ** Apache Corp APA.N: down 0.4% ** Noble Energy Inc NBL.O: down 5.6% ** Baker Hughes Co BKR.N: down 2.7% ** Schlumberger NV SLB.N: down 2.4% ** Halliburton Co HAL.N: down 2.4% BUZZ-Oil and gas stocks fall as crude futures plunge ** Amazon.com Inc AMZN.O: down 2.9% BUZZ-Amazon could become an aggregator of health insurance to its sellers - Bernstein ** Coca-Cola Co KO.N: down 2.6% BUZZ-Coca-Cola: Hits nearly 3-wk low on forecast of quarterly earnings hit ** Edwards Lifesciences Corp EW.N: down 3.1% BUZZ-Edwards Lifesciences: JPM says temporary procedure deferrals to continue, slashes PT ** Darden Restaurants Inc DRI.N: up 0.7% BUZZ-Darden Restaurants prices upsized stock offering amid grapple with COVID-19 ** Laboratory Corporation of America Holdings LH.N: up 1.0% BUZZ-Laboratory Corp: Rises on emergency use authorization for COVID-19 home test ** Energous Corp WATT.O: up 207.7% BUZZ-Energous: Soars on FCC certification for new wireless charging transmitter ** Cara Therapeutics Inc CARA.O: up 1.0% BUZZ-Cara: Rises on positive results from late-stage trials in hemodialysis patients ** Philip Morris International Inc PM.N: down 6.1% BUZZ-Philip Morris: Falls on downbeat quarterly profit outlook due to coronavirus impact
The 11 major S&P 500 sectors:
Communication Services
.SPLRCL
down 2.99%
Consumer Discretionary
.SPLRCD
down 2.71%
Consumer Staples
.SPLRCS
down 2.10%
Energy
.SPNY
down 2.05%
Financial
.SPSY
down 2.70%
Health
.SPXHC
down 2.51%
Industrial
.SPLRCI
down 2.20%
Information Technology
.SPLRCT
down 3.81%
Materials
.SPLRCM
down 2.39%
Real Estate
.SPLRCR
down 2.00%
Utilities
.SPLRCU
down 2.14%
(Compiled by Amal S in Bengaluru)
((Amal.S@thomsonreuters.com; within U.S.+1 646 223 8780; outside U.S. +91 80 6749 3677;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The top three S&P 500 .PG.INX percentage gainers: ** FLIR Systems Inc , up 7.6% ** Equifax Inc , up 3.5% ** Carrier Global Corp , up 2.9% The top three S&P 500 .PL.INX percentage losers: ** Fortinet Inc , down 10.9% ** Freeport-McMoran Inc , down 7.6% ** Oneok Inc , down 7.3% The top three NYSE .PG.N percentage gainers: ** DB Crude Oil Double Short ETN , up 82.1% ** ProShares UltraShort Bloomberg Crude Oil , up 58.2% ** SilverBow Resources Inc , up 25.6% The top three NYSE .PL.N percentage losers: ** ProShares UltraShort Bloomberg Crude Oil , down 46.8% ** Ipath S&P GSCI Crude Ol ETN , down 46% ** UBS ETRACS S&P GSCI Crude Oil Total Return Index ETN , down 43.9% The top three Nasdaq .PG.O percentage gainers: ** TORM Plc Ord , up 373.7% ** Energous Corp , up 207.7% ** Peck Company Holdings Inc , up 54.7% The top three Nasdaq .PL.O percentage losers: ** Cyclacel Pharmaceuticals Inc , down 52.4% ** Summit Semiconductor Inc , down 45.5% ** Kelly Services Inc , down 26.6% ** United Airlines Holdings Inc UAL.O: up 0.4% ** Delta Air Lines DAL.N: down 2.7% ** American Airlines Groups Inc AAL.O: down 2.4% ** Southwest Airlines LUV.N: down 2.9% ** Alaska Air Group Inc ALK.N: down 3.0% ** JetBlue Airways Corp JBLU.O: down 2.2% BUZZ-U.S. carriers: Perfect time to benefit from cheap oil, only if demand returns ** Cinedigm Corp CIDM.O: up 24.5% BUZZ-Cinedigm Corp: Jumps on higher monthly active viewers ** Centogene NV CNTG.O: up 7.8% BUZZ-Centogene rises after launching COVID-19 detection kit ** HCA Healthcare Inc HCA.N: down 4.0% BUZZ-HCA Healthcare withdraws 2020 forecast on coronavirus uncertainty, shares slip ** Beyond Meat Inc BYND.O: up 7.1% BUZZ-Beyond Meat jumps as teams with Starbucks in China ** Summit Wireless Technologies Inc WISA.O: down 45.5% BUZZ-Summit Wireless: Drops on second Nasdaq non-compliance notice ** Vaxart Inc VXRT.O: up 30.0% BUZZ-Vaxart Inc: Surges on positive preclinical data from potential COVID-19 vaccines ** Cyclacel Pharmaceuticals Inc CYCC.O: down 52.4% BUZZ-Cyclacel Pharma dives on deep discounted stock offering ** Newmont Corp NEM.N: down 2.0% ** Barrick Gold Corp GOLD.N: down 1.7% ** Kirkland Lake Gold Ltd KL.N: down 1.8% ** Yamana Gold Inc AUY.N: down 1.8% ** AngloGold Ashanti AU.N: down 1.1% ** Harmony Gold HMY.N: down 4.4% BUZZ-Gold miners fall as oil rout prompts panic selling ** Goldman Sachs Group Inc GS.N: down 3.0% ** JPMorgan Chase & Co JPM.N: down 1.8% ** Citigroup Inc C.N: down 5.3% ** Wells Fargo & Co WFC.N: down 3.5% ** Bank of America Corp BAC.N: down 3.2% ** Morgan Stanley MS.N: down 3.3% BUZZ-U.S. big banks fall on lower treasury yields as crude crash drives bond appeal ** PAVmed Inc PAVM.O: up 14.5% BUZZ-PAVmed jumps as FDA approves carpal tunnel syndrome treatment device ** Hexcel Corp HXL.N: down 7.7% BUZZ-Hexel Corp: Falls after results miss as coronavirus hits demand ** VF Corp VFC.N: down 4.4% BUZZ-VF Corp: Falls as preliminary FY 2020 revenue disappoints ** ATyr Pharma Inc LIFE.O: up 3.9% BUZZ-ATyr Pharma Inc: Rises on FDA nod to further test lung treatment for COVID-19 ** Teekay Corp TK.N: up 7.4% ** Nordic American Tanker Ltd NAT.N: up 7.1% ** Scorpio Tankers Inc STNG.N: up 2.8% BUZZ-Tanker stocks rise as oil traders rush for storage amid supply glut ** International Business Corp IBM.N: down 3.6% BUZZ-IBM falls on 2020 forecast withdrawal due to coronavirus pandemic ** Hertz Global Holdings Inc HTZ.N: down 7.1% BUZZ-Hertz Global Holdings: Cuts 10,000 jobs as bookings fall, shares drop ** Exxon Mobil Corp XOM.N: down 0.5% ** Chevron Corp CVX.N: down 2.3% ** Whiting Petroleum Corp WLL.N: up 16.7% ** Marathon Oil Corp MRO.N: down 1.2% ** Occidental Petroleum Corp OXY.N: down 3.4% ** Diamondback Energy Inc FANG.O: down 1.5% ** Pioneer Natural Resources Co PXD.N: down 1.5% ** ConocoPhillips COP.N: down 4.2% ** Apache Corp APA.N: down 0.4% ** Noble Energy Inc NBL.O: down 5.6% ** Baker Hughes Co BKR.N: down 2.7% ** Schlumberger NV SLB.N: down 2.4% ** Halliburton Co HAL.N: down 2.4% BUZZ-Oil and gas stocks fall as crude futures plunge ** Amazon.com Inc AMZN.O: down 2.9% BUZZ-Amazon could become an aggregator of health insurance to its sellers - Bernstein ** Coca-Cola Co KO.N: down 2.6% BUZZ-Coca-Cola: Hits nearly 3-wk low on forecast of quarterly earnings hit ** Edwards Lifesciences Corp EW.N: down 3.1% BUZZ-Edwards Lifesciences: JPM says temporary procedure deferrals to continue, slashes PT ** Darden Restaurants Inc DRI.N: up 0.7% BUZZ-Darden Restaurants prices upsized stock offering amid grapple with COVID-19 ** Laboratory Corporation of America Holdings LH.N: up 1.0% BUZZ-Laboratory Corp: Rises on emergency use authorization for COVID-19 home test ** Energous Corp WATT.O: up 207.7% BUZZ-Energous: Soars on FCC certification for new wireless charging transmitter ** Cara Therapeutics Inc CARA.O: up 1.0% BUZZ-Cara: Rises on positive results from late-stage trials in hemodialysis patients ** Philip Morris International Inc PM.N: down 6.1% BUZZ-Philip Morris: Falls on downbeat quarterly profit outlook due to coronavirus impact The 11 major S&P 500 sectors: Communication Services Eikon search string for individual stock moves: STXBZ The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh Wall Street retreated for a second straight day on Tuesday as a collapse in U.S. crude prices and glum annual forecasts by companies foreshadowed the biggest economic slump since the Great Depression due to the coronavirus outbreak. down 2.14% (Compiled by Amal S in Bengaluru) ((Amal.S@thomsonreuters.com; within U.S.+1 646 223 8780; outside U.S. +91 80 6749 3677;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The top three S&P 500 .PG.INX percentage gainers: ** FLIR Systems Inc , up 7.6% ** Equifax Inc , up 3.5% ** Carrier Global Corp , up 2.9% The top three S&P 500 .PL.INX percentage losers: ** Fortinet Inc , down 10.9% ** Freeport-McMoran Inc , down 7.6% ** Oneok Inc , down 7.3% The top three NYSE .PG.N percentage gainers: ** DB Crude Oil Double Short ETN , up 82.1% ** ProShares UltraShort Bloomberg Crude Oil , up 58.2% ** SilverBow Resources Inc , up 25.6% The top three NYSE .PL.N percentage losers: ** ProShares UltraShort Bloomberg Crude Oil , down 46.8% ** Ipath S&P GSCI Crude Ol ETN , down 46% ** UBS ETRACS S&P GSCI Crude Oil Total Return Index ETN , down 43.9% The top three Nasdaq .PG.O percentage gainers: ** TORM Plc Ord , up 373.7% ** Energous Corp , up 207.7% ** Peck Company Holdings Inc , up 54.7% The top three Nasdaq .PL.O percentage losers: ** Cyclacel Pharmaceuticals Inc , down 52.4% ** Summit Semiconductor Inc , down 45.5% ** Kelly Services Inc , down 26.6% ** United Airlines Holdings Inc UAL.O: up 0.4% ** Delta Air Lines DAL.N: down 2.7% ** American Airlines Groups Inc AAL.O: down 2.4% ** Southwest Airlines LUV.N: down 2.9% ** Alaska Air Group Inc ALK.N: down 3.0% ** JetBlue Airways Corp JBLU.O: down 2.2% BUZZ-U.S. carriers: Perfect time to benefit from cheap oil, only if demand returns ** Cinedigm Corp CIDM.O: up 24.5% BUZZ-Cinedigm Corp: Jumps on higher monthly active viewers ** Centogene NV CNTG.O: up 7.8% BUZZ-Centogene rises after launching COVID-19 detection kit ** HCA Healthcare Inc HCA.N: down 4.0% BUZZ-HCA Healthcare withdraws 2020 forecast on coronavirus uncertainty, shares slip ** Beyond Meat Inc BYND.O: up 7.1% BUZZ-Beyond Meat jumps as teams with Starbucks in China ** Summit Wireless Technologies Inc WISA.O: down 45.5% BUZZ-Summit Wireless: Drops on second Nasdaq non-compliance notice ** Vaxart Inc VXRT.O: up 30.0% BUZZ-Vaxart Inc: Surges on positive preclinical data from potential COVID-19 vaccines ** Cyclacel Pharmaceuticals Inc CYCC.O: down 52.4% BUZZ-Cyclacel Pharma dives on deep discounted stock offering ** Newmont Corp NEM.N: down 2.0% ** Barrick Gold Corp GOLD.N: down 1.7% ** Kirkland Lake Gold Ltd KL.N: down 1.8% ** Yamana Gold Inc AUY.N: down 1.8% ** AngloGold Ashanti AU.N: down 1.1% ** Harmony Gold HMY.N: down 4.4% BUZZ-Gold miners fall as oil rout prompts panic selling ** Goldman Sachs Group Inc GS.N: down 3.0% ** JPMorgan Chase & Co JPM.N: down 1.8% ** Citigroup Inc C.N: down 5.3% ** Wells Fargo & Co WFC.N: down 3.5% ** Bank of America Corp BAC.N: down 3.2% ** Morgan Stanley MS.N: down 3.3% BUZZ-U.S. big banks fall on lower treasury yields as crude crash drives bond appeal ** PAVmed Inc PAVM.O: up 14.5% BUZZ-PAVmed jumps as FDA approves carpal tunnel syndrome treatment device ** Hexcel Corp HXL.N: down 7.7% BUZZ-Hexel Corp: Falls after results miss as coronavirus hits demand ** VF Corp VFC.N: down 4.4% BUZZ-VF Corp: Falls as preliminary FY 2020 revenue disappoints ** ATyr Pharma Inc LIFE.O: up 3.9% BUZZ-ATyr Pharma Inc: Rises on FDA nod to further test lung treatment for COVID-19 ** Teekay Corp TK.N: up 7.4% ** Nordic American Tanker Ltd NAT.N: up 7.1% ** Scorpio Tankers Inc STNG.N: up 2.8% BUZZ-Tanker stocks rise as oil traders rush for storage amid supply glut ** International Business Corp IBM.N: down 3.6% BUZZ-IBM falls on 2020 forecast withdrawal due to coronavirus pandemic ** Hertz Global Holdings Inc HTZ.N: down 7.1% BUZZ-Hertz Global Holdings: Cuts 10,000 jobs as bookings fall, shares drop ** Exxon Mobil Corp XOM.N: down 0.5% ** Chevron Corp CVX.N: down 2.3% ** Whiting Petroleum Corp WLL.N: up 16.7% ** Marathon Oil Corp MRO.N: down 1.2% ** Occidental Petroleum Corp OXY.N: down 3.4% ** Diamondback Energy Inc FANG.O: down 1.5% ** Pioneer Natural Resources Co PXD.N: down 1.5% ** ConocoPhillips COP.N: down 4.2% ** Apache Corp APA.N: down 0.4% ** Noble Energy Inc NBL.O: down 5.6% ** Baker Hughes Co BKR.N: down 2.7% ** Schlumberger NV SLB.N: down 2.4% ** Halliburton Co HAL.N: down 2.4% BUZZ-Oil and gas stocks fall as crude futures plunge ** Amazon.com Inc AMZN.O: down 2.9% BUZZ-Amazon could become an aggregator of health insurance to its sellers - Bernstein ** Coca-Cola Co KO.N: down 2.6% BUZZ-Coca-Cola: Hits nearly 3-wk low on forecast of quarterly earnings hit ** Edwards Lifesciences Corp EW.N: down 3.1% BUZZ-Edwards Lifesciences: JPM says temporary procedure deferrals to continue, slashes PT ** Darden Restaurants Inc DRI.N: up 0.7% BUZZ-Darden Restaurants prices upsized stock offering amid grapple with COVID-19 ** Laboratory Corporation of America Holdings LH.N: up 1.0% BUZZ-Laboratory Corp: Rises on emergency use authorization for COVID-19 home test ** Energous Corp WATT.O: up 207.7% BUZZ-Energous: Soars on FCC certification for new wireless charging transmitter ** Cara Therapeutics Inc CARA.O: up 1.0% BUZZ-Cara: Rises on positive results from late-stage trials in hemodialysis patients ** Philip Morris International Inc PM.N: down 6.1% BUZZ-Philip Morris: Falls on downbeat quarterly profit outlook due to coronavirus impact The 11 major S&P 500 sectors: Communication Services Eikon search string for individual stock moves: STXBZ The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh Wall Street retreated for a second straight day on Tuesday as a collapse in U.S. crude prices and glum annual forecasts by companies foreshadowed the biggest economic slump since the Great Depression due to the coronavirus outbreak. down 2.14% (Compiled by Amal S in Bengaluru) ((Amal.S@thomsonreuters.com; within U.S.+1 646 223 8780; outside U.S. +91 80 6749 3677;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The top three S&P 500 .PG.INX percentage gainers: ** FLIR Systems Inc , up 7.6% ** Equifax Inc , up 3.5% ** Carrier Global Corp , up 2.9% The top three S&P 500 .PL.INX percentage losers: ** Fortinet Inc , down 10.9% ** Freeport-McMoran Inc , down 7.6% ** Oneok Inc , down 7.3% The top three NYSE .PG.N percentage gainers: ** DB Crude Oil Double Short ETN , up 82.1% ** ProShares UltraShort Bloomberg Crude Oil , up 58.2% ** SilverBow Resources Inc , up 25.6% The top three NYSE .PL.N percentage losers: ** ProShares UltraShort Bloomberg Crude Oil , down 46.8% ** Ipath S&P GSCI Crude Ol ETN , down 46% ** UBS ETRACS S&P GSCI Crude Oil Total Return Index ETN , down 43.9% The top three Nasdaq .PG.O percentage gainers: ** TORM Plc Ord , up 373.7% ** Energous Corp , up 207.7% ** Peck Company Holdings Inc , up 54.7% The top three Nasdaq .PL.O percentage losers: ** Cyclacel Pharmaceuticals Inc , down 52.4% ** Summit Semiconductor Inc , down 45.5% ** Kelly Services Inc , down 26.6% ** United Airlines Holdings Inc UAL.O: up 0.4% ** Delta Air Lines DAL.N: down 2.7% ** American Airlines Groups Inc AAL.O: down 2.4% ** Southwest Airlines LUV.N: down 2.9% ** Alaska Air Group Inc ALK.N: down 3.0% ** JetBlue Airways Corp JBLU.O: down 2.2% BUZZ-U.S. carriers: Perfect time to benefit from cheap oil, only if demand returns ** Cinedigm Corp CIDM.O: up 24.5% BUZZ-Cinedigm Corp: Jumps on higher monthly active viewers ** Centogene NV CNTG.O: up 7.8% BUZZ-Centogene rises after launching COVID-19 detection kit ** HCA Healthcare Inc HCA.N: down 4.0% BUZZ-HCA Healthcare withdraws 2020 forecast on coronavirus uncertainty, shares slip ** Beyond Meat Inc BYND.O: up 7.1% BUZZ-Beyond Meat jumps as teams with Starbucks in China ** Summit Wireless Technologies Inc WISA.O: down 45.5% BUZZ-Summit Wireless: Drops on second Nasdaq non-compliance notice ** Vaxart Inc VXRT.O: up 30.0% BUZZ-Vaxart Inc: Surges on positive preclinical data from potential COVID-19 vaccines ** Cyclacel Pharmaceuticals Inc CYCC.O: down 52.4% BUZZ-Cyclacel Pharma dives on deep discounted stock offering ** Newmont Corp NEM.N: down 2.0% ** Barrick Gold Corp GOLD.N: down 1.7% ** Kirkland Lake Gold Ltd KL.N: down 1.8% ** Yamana Gold Inc AUY.N: down 1.8% ** AngloGold Ashanti AU.N: down 1.1% ** Harmony Gold HMY.N: down 4.4% BUZZ-Gold miners fall as oil rout prompts panic selling ** Goldman Sachs Group Inc GS.N: down 3.0% ** JPMorgan Chase & Co JPM.N: down 1.8% ** Citigroup Inc C.N: down 5.3% ** Wells Fargo & Co WFC.N: down 3.5% ** Bank of America Corp BAC.N: down 3.2% ** Morgan Stanley MS.N: down 3.3% BUZZ-U.S. big banks fall on lower treasury yields as crude crash drives bond appeal ** PAVmed Inc PAVM.O: up 14.5% BUZZ-PAVmed jumps as FDA approves carpal tunnel syndrome treatment device ** Hexcel Corp HXL.N: down 7.7% BUZZ-Hexel Corp: Falls after results miss as coronavirus hits demand ** VF Corp VFC.N: down 4.4% BUZZ-VF Corp: Falls as preliminary FY 2020 revenue disappoints ** ATyr Pharma Inc LIFE.O: up 3.9% BUZZ-ATyr Pharma Inc: Rises on FDA nod to further test lung treatment for COVID-19 ** Teekay Corp TK.N: up 7.4% ** Nordic American Tanker Ltd NAT.N: up 7.1% ** Scorpio Tankers Inc STNG.N: up 2.8% BUZZ-Tanker stocks rise as oil traders rush for storage amid supply glut ** International Business Corp IBM.N: down 3.6% BUZZ-IBM falls on 2020 forecast withdrawal due to coronavirus pandemic ** Hertz Global Holdings Inc HTZ.N: down 7.1% BUZZ-Hertz Global Holdings: Cuts 10,000 jobs as bookings fall, shares drop ** Exxon Mobil Corp XOM.N: down 0.5% ** Chevron Corp CVX.N: down 2.3% ** Whiting Petroleum Corp WLL.N: up 16.7% ** Marathon Oil Corp MRO.N: down 1.2% ** Occidental Petroleum Corp OXY.N: down 3.4% ** Diamondback Energy Inc FANG.O: down 1.5% ** Pioneer Natural Resources Co PXD.N: down 1.5% ** ConocoPhillips COP.N: down 4.2% ** Apache Corp APA.N: down 0.4% ** Noble Energy Inc NBL.O: down 5.6% ** Baker Hughes Co BKR.N: down 2.7% ** Schlumberger NV SLB.N: down 2.4% ** Halliburton Co HAL.N: down 2.4% BUZZ-Oil and gas stocks fall as crude futures plunge ** Amazon.com Inc AMZN.O: down 2.9% BUZZ-Amazon could become an aggregator of health insurance to its sellers - Bernstein ** Coca-Cola Co KO.N: down 2.6% BUZZ-Coca-Cola: Hits nearly 3-wk low on forecast of quarterly earnings hit ** Edwards Lifesciences Corp EW.N: down 3.1% BUZZ-Edwards Lifesciences: JPM says temporary procedure deferrals to continue, slashes PT ** Darden Restaurants Inc DRI.N: up 0.7% BUZZ-Darden Restaurants prices upsized stock offering amid grapple with COVID-19 ** Laboratory Corporation of America Holdings LH.N: up 1.0% BUZZ-Laboratory Corp: Rises on emergency use authorization for COVID-19 home test ** Energous Corp WATT.O: up 207.7% BUZZ-Energous: Soars on FCC certification for new wireless charging transmitter ** Cara Therapeutics Inc CARA.O: up 1.0% BUZZ-Cara: Rises on positive results from late-stage trials in hemodialysis patients ** Philip Morris International Inc PM.N: down 6.1% BUZZ-Philip Morris: Falls on downbeat quarterly profit outlook due to coronavirus impact The 11 major S&P 500 sectors: Communication Services .N At 13:05 ET, the Dow Jones Industrial Average .DJI was down 2.73% at 23,005.21. down 2.71% Consumer Staples
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The top three S&P 500 .PG.INX percentage gainers: ** FLIR Systems Inc , up 7.6% ** Equifax Inc , up 3.5% ** Carrier Global Corp , up 2.9% The top three S&P 500 .PL.INX percentage losers: ** Fortinet Inc , down 10.9% ** Freeport-McMoran Inc , down 7.6% ** Oneok Inc , down 7.3% The top three NYSE .PG.N percentage gainers: ** DB Crude Oil Double Short ETN , up 82.1% ** ProShares UltraShort Bloomberg Crude Oil , up 58.2% ** SilverBow Resources Inc , up 25.6% The top three NYSE .PL.N percentage losers: ** ProShares UltraShort Bloomberg Crude Oil , down 46.8% ** Ipath S&P GSCI Crude Ol ETN , down 46% ** UBS ETRACS S&P GSCI Crude Oil Total Return Index ETN , down 43.9% The top three Nasdaq .PG.O percentage gainers: ** TORM Plc Ord , up 373.7% ** Energous Corp , up 207.7% ** Peck Company Holdings Inc , up 54.7% The top three Nasdaq .PL.O percentage losers: ** Cyclacel Pharmaceuticals Inc , down 52.4% ** Summit Semiconductor Inc , down 45.5% ** Kelly Services Inc , down 26.6% ** United Airlines Holdings Inc UAL.O: up 0.4% ** Delta Air Lines DAL.N: down 2.7% ** American Airlines Groups Inc AAL.O: down 2.4% ** Southwest Airlines LUV.N: down 2.9% ** Alaska Air Group Inc ALK.N: down 3.0% ** JetBlue Airways Corp JBLU.O: down 2.2% BUZZ-U.S. carriers: Perfect time to benefit from cheap oil, only if demand returns ** Cinedigm Corp CIDM.O: up 24.5% BUZZ-Cinedigm Corp: Jumps on higher monthly active viewers ** Centogene NV CNTG.O: up 7.8% BUZZ-Centogene rises after launching COVID-19 detection kit ** HCA Healthcare Inc HCA.N: down 4.0% BUZZ-HCA Healthcare withdraws 2020 forecast on coronavirus uncertainty, shares slip ** Beyond Meat Inc BYND.O: up 7.1% BUZZ-Beyond Meat jumps as teams with Starbucks in China ** Summit Wireless Technologies Inc WISA.O: down 45.5% BUZZ-Summit Wireless: Drops on second Nasdaq non-compliance notice ** Vaxart Inc VXRT.O: up 30.0% BUZZ-Vaxart Inc: Surges on positive preclinical data from potential COVID-19 vaccines ** Cyclacel Pharmaceuticals Inc CYCC.O: down 52.4% BUZZ-Cyclacel Pharma dives on deep discounted stock offering ** Newmont Corp NEM.N: down 2.0% ** Barrick Gold Corp GOLD.N: down 1.7% ** Kirkland Lake Gold Ltd KL.N: down 1.8% ** Yamana Gold Inc AUY.N: down 1.8% ** AngloGold Ashanti AU.N: down 1.1% ** Harmony Gold HMY.N: down 4.4% BUZZ-Gold miners fall as oil rout prompts panic selling ** Goldman Sachs Group Inc GS.N: down 3.0% ** JPMorgan Chase & Co JPM.N: down 1.8% ** Citigroup Inc C.N: down 5.3% ** Wells Fargo & Co WFC.N: down 3.5% ** Bank of America Corp BAC.N: down 3.2% ** Morgan Stanley MS.N: down 3.3% BUZZ-U.S. big banks fall on lower treasury yields as crude crash drives bond appeal ** PAVmed Inc PAVM.O: up 14.5% BUZZ-PAVmed jumps as FDA approves carpal tunnel syndrome treatment device ** Hexcel Corp HXL.N: down 7.7% BUZZ-Hexel Corp: Falls after results miss as coronavirus hits demand ** VF Corp VFC.N: down 4.4% BUZZ-VF Corp: Falls as preliminary FY 2020 revenue disappoints ** ATyr Pharma Inc LIFE.O: up 3.9% BUZZ-ATyr Pharma Inc: Rises on FDA nod to further test lung treatment for COVID-19 ** Teekay Corp TK.N: up 7.4% ** Nordic American Tanker Ltd NAT.N: up 7.1% ** Scorpio Tankers Inc STNG.N: up 2.8% BUZZ-Tanker stocks rise as oil traders rush for storage amid supply glut ** International Business Corp IBM.N: down 3.6% BUZZ-IBM falls on 2020 forecast withdrawal due to coronavirus pandemic ** Hertz Global Holdings Inc HTZ.N: down 7.1% BUZZ-Hertz Global Holdings: Cuts 10,000 jobs as bookings fall, shares drop ** Exxon Mobil Corp XOM.N: down 0.5% ** Chevron Corp CVX.N: down 2.3% ** Whiting Petroleum Corp WLL.N: up 16.7% ** Marathon Oil Corp MRO.N: down 1.2% ** Occidental Petroleum Corp OXY.N: down 3.4% ** Diamondback Energy Inc FANG.O: down 1.5% ** Pioneer Natural Resources Co PXD.N: down 1.5% ** ConocoPhillips COP.N: down 4.2% ** Apache Corp APA.N: down 0.4% ** Noble Energy Inc NBL.O: down 5.6% ** Baker Hughes Co BKR.N: down 2.7% ** Schlumberger NV SLB.N: down 2.4% ** Halliburton Co HAL.N: down 2.4% BUZZ-Oil and gas stocks fall as crude futures plunge ** Amazon.com Inc AMZN.O: down 2.9% BUZZ-Amazon could become an aggregator of health insurance to its sellers - Bernstein ** Coca-Cola Co KO.N: down 2.6% BUZZ-Coca-Cola: Hits nearly 3-wk low on forecast of quarterly earnings hit ** Edwards Lifesciences Corp EW.N: down 3.1% BUZZ-Edwards Lifesciences: JPM says temporary procedure deferrals to continue, slashes PT ** Darden Restaurants Inc DRI.N: up 0.7% BUZZ-Darden Restaurants prices upsized stock offering amid grapple with COVID-19 ** Laboratory Corporation of America Holdings LH.N: up 1.0% BUZZ-Laboratory Corp: Rises on emergency use authorization for COVID-19 home test ** Energous Corp WATT.O: up 207.7% BUZZ-Energous: Soars on FCC certification for new wireless charging transmitter ** Cara Therapeutics Inc CARA.O: up 1.0% BUZZ-Cara: Rises on positive results from late-stage trials in hemodialysis patients ** Philip Morris International Inc PM.N: down 6.1% BUZZ-Philip Morris: Falls on downbeat quarterly profit outlook due to coronavirus impact The 11 major S&P 500 sectors: Communication Services Eikon search string for individual stock moves: STXBZ The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh Wall Street retreated for a second straight day on Tuesday as a collapse in U.S. crude prices and glum annual forecasts by companies foreshadowed the biggest economic slump since the Great Depression due to the coronavirus outbreak. .N At 13:05 ET, the Dow Jones Industrial Average .DJI was down 2.73% at 23,005.21.
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6026.0
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2020-04-21 00:00:00 UTC
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Don’t Book A Flight With United Airlines Stock Just Yet
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AAL
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https://www.nasdaq.com/articles/dont-book-a-flight-with-united-airlines-stock-just-yet-2020-04-21
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The wholesale destruction of the aviation industry has captured the fascination of investors everywhere. Companies from Delta Airlines (NYSE:DAL) and Jet Blue Airways (NYSE:JBLU) to American Airlines (NYSE:AAL) and United Airlines (NYSE:UAL) have seen share prices pulverized. A fresh look at UAL stock suggests it’s not worth buying yet.
Source: NextNewMedia / Shutterstock.com
But if you’re a fan of DAL, AAL, or one of the dozen other major carriers, don’t get too comfortable. My analysis of UAL applies to you as well. And that’s for a single, simple reason: all airline stocks are moving the exact same right now.
In technician-speak, we would say correlations are running to one. At some point, likely in the distant future, they will rediscover their individuality, but that day isn’t today. For now, they’re all stuck together in the same leaky boat.
A global pandemic has air traffic grinding to a halt and the world’s largest airlines pleading for rescue from the only entity on the planet with the power to save them – the government. Fortunately, Uncle Sam has heard their cries, and a $25 billion bailout is on its way.
7 Real Estate Stocks to Watch as the Long-Term Impact of the Virus Looms
Those hoping for a rapid-fire recovery out of UAL stock and friends are in for a rude awakening if they think the road back will be an easy flight, though. Just look at its trajectory so far.
UAL Stock Is Synced With Turbulent Airline Index
The NYSE Arca Airline Index (NYSE:XAL) is about the best proxy for the airline industry that you’ll find. It includes the who’s who of the space among its top holdings. As a result, its chart is essentially an amalgamation of the individual charts of DAL, UAL, AAL, JBLU, and the others.
Source: The thinkorswim® platform from TD Ameritrade
XAL has rallied off its lows, but not much. Bottom fishers have to be disappointed that airline stocks didn’t achieve more lift following the government bailout, particularly given the rosy performance out of the rest of the stock market. The S&P 500 has retraced some 50% of its bear market losses. By comparison, XAL has only regained about 15% of its lost ground.
The past month has seen some stability, but I find the lack of upside follow-through disturbing and a sign that more time is needed before an uptrend takes root. The symmetrical triangle pattern is a good start, but the party won’t start until bulls can push the Index through resistance. $50 marks the spot to watch.
UAL Stock Charts Don’t Look Good On Their Own Either
My take on the United Airlines stock chart echos the outlook for the Airline Index. They’re virtually identical. The weekly time frame reveals the severity of UAL’s 82% crash before finding a bottom at $17.80. Momentum exploded, and volume too. Last week saw just shy of 163 million shares trade hands, marking the second-most active trading week in history.
Source: The thinkorswim® platform from TD Ameritrade
The past month of market choppiness has the stock flashing a sloppy bear pennant. Though there’s still time for the pattern to morph, for now it remains an uninspiring bearish continuation setup. Until that changes, the weekly chart remains in favor of sellers.
Drilling down to the daily reveals the same symmetrical triangle seen in the industry chart. The series of higher pivot lows and lower pivot highs reflects neutrality. But, given that it’s forming in the context of a massive downtrend, it’s not exactly the type of price action that beckons to bulls.
Source: The thinkorswim® platform from TD Ameritrade
Perhaps next week’s earnings report on April 28th will be the catalyst to nudge UAL out of its holding pattern. I suggest waiting for a breakout over $34 or $40 before buying. If you’re bearish, then look for a break below $22 support as a trigger for the next down-leg.
For a free trial to the best trading community on the planet and Tyler’s current home, click here! As of this writing, he did not hold a position in any of the aforementioned securities.
The post Don’t Book A Flight With United Airlines Stock Just Yet appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Companies from Delta Airlines (NYSE:DAL) and Jet Blue Airways (NYSE:JBLU) to American Airlines (NYSE:AAL) and United Airlines (NYSE:UAL) have seen share prices pulverized. Source: NextNewMedia / Shutterstock.com But if you’re a fan of DAL, AAL, or one of the dozen other major carriers, don’t get too comfortable. As a result, its chart is essentially an amalgamation of the individual charts of DAL, UAL, AAL, JBLU, and the others.
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Companies from Delta Airlines (NYSE:DAL) and Jet Blue Airways (NYSE:JBLU) to American Airlines (NYSE:AAL) and United Airlines (NYSE:UAL) have seen share prices pulverized. As a result, its chart is essentially an amalgamation of the individual charts of DAL, UAL, AAL, JBLU, and the others. Source: NextNewMedia / Shutterstock.com But if you’re a fan of DAL, AAL, or one of the dozen other major carriers, don’t get too comfortable.
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Companies from Delta Airlines (NYSE:DAL) and Jet Blue Airways (NYSE:JBLU) to American Airlines (NYSE:AAL) and United Airlines (NYSE:UAL) have seen share prices pulverized. Source: NextNewMedia / Shutterstock.com But if you’re a fan of DAL, AAL, or one of the dozen other major carriers, don’t get too comfortable. As a result, its chart is essentially an amalgamation of the individual charts of DAL, UAL, AAL, JBLU, and the others.
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Companies from Delta Airlines (NYSE:DAL) and Jet Blue Airways (NYSE:JBLU) to American Airlines (NYSE:AAL) and United Airlines (NYSE:UAL) have seen share prices pulverized. Source: NextNewMedia / Shutterstock.com But if you’re a fan of DAL, AAL, or one of the dozen other major carriers, don’t get too comfortable. As a result, its chart is essentially an amalgamation of the individual charts of DAL, UAL, AAL, JBLU, and the others.
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6027.0
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2020-04-20 00:00:00 UTC
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Why Airline Shares Are Falling Today
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AAL
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https://www.nasdaq.com/articles/why-airline-shares-are-falling-today-2020-04-20
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What happened
Airline stocks sputtered on Monday after United Airlines Holdings (NASDAQ: UAL) released preliminary first-quarter results that came in well below expectations. Investors knew first- and second-quarter numbers would be under pressure, but United's actual numbers paint a picture of how challenging operations are for the nation's airlines.
Shares of United fell 8.2% at the open, while shares of American Airlines Group (NASDAQ: AAL) fell 7.3% and shares of Delta Air Lines (NYSE: DAL), Southwest Airlines (NYSE: LUV), Spirit Airlines (NYSE: SAVE), JetBlue Airways (NASDAQ: JBLU), Alaska Air Group (NYSE: ALK), Hawaiian Holdings (NASDAQ: HA), and Allegiant Travel Co. (NASDAQ: ALGT) all fell more than 5%.
The stocks gave back some of those losses as the trading day continued, but it looks like another tough trading session for airline investors.
So what
Airline stocks have been hard hit by the COVID-19 pandemic, with travel demand off by more than 90%. The pandemic began in Asia early in the quarter but spread globally by March, meaning the first quarter was sure to be impacted. In a securities filing on Monday, United Airlines gave an idea of how bad the quarterly airline reports are going to be.
United said it expects a pre-tax loss of about $2.1 billion in the quarter, significantly more than the consensus estimate for a $459 million loss. The number includes about $1 billion in special charges mostly tied to a decline in the value of United's investment in Colombia's Avianca Holdings (NYSE: AVH). Avianca has been largely grounded since March 24 after Colombia and other Latin American countries shut down their air space.
Image source: United Airlines.
The results are bad, but the second quarter is likely to be significantly worse. United said first-quarter revenue fell 17% year over year to $8 billion. Airlines in recent weeks have said they expect revenue to fall by upwards of 90% in the second quarter, as refund requests swamp new bookings and Americans put vacation and work travel plans on hold.
United said it expects to take $5 billion through the government payroll support program, including a $1.5 billion loan with an interest rate of 1% in the first five years. It also intends to apply to borrow another $4.5 billion from the U.S. Treasury as part of a separate $25 billion program, but executives have warned employees that if travel does not return by the fall, significant layoffs are possible.
The entire sector is under pressure because there is ample reason to assume that United's experience is not unique. The airlines in more typical times would likely rally on Monday's news that oil prices are plunging to historic lows, as that is a major expense for the industry, but given how little flying is going on right now and how much else there is to worry about, cheap jet fuel is almost certainly not enough to save the industry.
Now what
We'll start to get finalized first-quarter results this week as Delta and Southwest are scheduled to report. Expect the quarters to be ugly and focus on what management has to say in the post-earnings commentary to get a gauge of what to expect from here. Delta and Southwest are arguably the two best-run companies in the airline business, and if they are pessimistic about a recovery, it is likely to put the entire industry under pressure.
I'm optimistic that the government programs will allow the industry to weather this storm without liquidity issues, but it seems likely the recovery will be a long, painful process. Over the next few weeks, as the airlines announce earnings, we are going to get a clear picture of where the industry has been. Where it is heading is much more difficult to view at this moment.
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Lou Whiteman owns shares of Delta Air Lines and Spirit Airlines. The Motley Fool owns shares of and recommends Delta Air Lines, Southwest Airlines, and Spirit Airlines. The Motley Fool recommends Alaska Air Group, Hawaiian Holdings, and JetBlue Airways. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shares of United fell 8.2% at the open, while shares of American Airlines Group (NASDAQ: AAL) fell 7.3% and shares of Delta Air Lines (NYSE: DAL), Southwest Airlines (NYSE: LUV), Spirit Airlines (NYSE: SAVE), JetBlue Airways (NASDAQ: JBLU), Alaska Air Group (NYSE: ALK), Hawaiian Holdings (NASDAQ: HA), and Allegiant Travel Co. (NASDAQ: ALGT) all fell more than 5%. The number includes about $1 billion in special charges mostly tied to a decline in the value of United's investment in Colombia's Avianca Holdings (NYSE: AVH). Airlines in recent weeks have said they expect revenue to fall by upwards of 90% in the second quarter, as refund requests swamp new bookings and Americans put vacation and work travel plans on hold.
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Shares of United fell 8.2% at the open, while shares of American Airlines Group (NASDAQ: AAL) fell 7.3% and shares of Delta Air Lines (NYSE: DAL), Southwest Airlines (NYSE: LUV), Spirit Airlines (NYSE: SAVE), JetBlue Airways (NASDAQ: JBLU), Alaska Air Group (NYSE: ALK), Hawaiian Holdings (NASDAQ: HA), and Allegiant Travel Co. (NASDAQ: ALGT) all fell more than 5%. The Motley Fool owns shares of and recommends Delta Air Lines, Southwest Airlines, and Spirit Airlines. The Motley Fool recommends Alaska Air Group, Hawaiian Holdings, and JetBlue Airways.
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Shares of United fell 8.2% at the open, while shares of American Airlines Group (NASDAQ: AAL) fell 7.3% and shares of Delta Air Lines (NYSE: DAL), Southwest Airlines (NYSE: LUV), Spirit Airlines (NYSE: SAVE), JetBlue Airways (NASDAQ: JBLU), Alaska Air Group (NYSE: ALK), Hawaiian Holdings (NASDAQ: HA), and Allegiant Travel Co. (NASDAQ: ALGT) all fell more than 5%. What happened Airline stocks sputtered on Monday after United Airlines Holdings (NASDAQ: UAL) released preliminary first-quarter results that came in well below expectations. The Motley Fool owns shares of and recommends Delta Air Lines, Southwest Airlines, and Spirit Airlines.
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Shares of United fell 8.2% at the open, while shares of American Airlines Group (NASDAQ: AAL) fell 7.3% and shares of Delta Air Lines (NYSE: DAL), Southwest Airlines (NYSE: LUV), Spirit Airlines (NYSE: SAVE), JetBlue Airways (NASDAQ: JBLU), Alaska Air Group (NYSE: ALK), Hawaiian Holdings (NASDAQ: HA), and Allegiant Travel Co. (NASDAQ: ALGT) all fell more than 5%. United said it expects a pre-tax loss of about $2.1 billion in the quarter, significantly more than the consensus estimate for a $459 million loss. United said it expects to take $5 billion through the government payroll support program, including a $1.5 billion loan with an interest rate of 1% in the first five years.
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6028.0
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2020-04-20 00:00:00 UTC
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After JetBlue Receives CARES Act Aid, Is JBLU Stock a Buy?
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AAL
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https://www.nasdaq.com/articles/after-jetblue-receives-cares-act-aid-is-jblu-stock-a-buy-2020-04-20
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Airline stocks have been devastated by the novel coronavirus and its resulting travel restrictions. JetBlue (NASDAQ:JBLU), the nation’s sixth largest airline, is no exception. Between February 13 and March 23, JBLU stock dropped in value by 68%.
Source: Roman Tiraspolsky / Shutterstock.com
However, with markets stabilizing, the worst appears to be over for now. And with CARES Act aid for JetBlue announced on April 14, the airline’s stock saw a big pop. Now trading at just under $9 — after topping $21 just before the coronavirus slammed the U.S. — is JetBlue a buying opportunity?
JetBlue Lands CARES Act Aid, Stock Responds
On April 14, JetBlue announced that it had reached tentative terms with the government to receive financial aid under the CARES Act.
This represented a major lifeline for the company. JetBlue had been flying over 1,000 flights daily before the coronavirus lockdown, with 23,000 employees. The company says that is now down to under 150 flights daily and its planes are running at just 10% capacity. Clearly that’s an untenable position to be in — a reality that’s been reflected in JetBlue’s plummeting stock price.
9 Asian Stocks to Buy for a Post-Coronavirus Recovery
JetBlue says that its CARES Act aid will amount to $935.8 million. Of that, $250.7 million must be repaid as a low-interest loan, starting in October. The remaining $685.1 million is a forgivable grant. In return, JetBlue has committed to continuing a minimum level of domestic air service. The U.S. government also gains the right to purchase a limited number of JBLU shares at a pre-determined price. JetBlue says:
“… every dollar of these funds will go directly to salary, wages and benefits for our Crewmembers through September 30.”
The announcement of the CARES Act deal gave JBLU a bump. After closing at $9.03 on April 13, it was trading as high as $10.10 on April 15.
JBLU Performance Compared to Other Airline Stocks
The coronavirus lockdown has hit both international and domestic flights, so no airline has escaped its effects. At the start of the year, U.S. airlines on average filled four of every five seats on their flights; by the end of March, that average was reportedly two of every five seats. The situation has only gotten grimmer in the past three weeks, and the number of flights has also fallen dramatically.
So have airline stocks.
JBLU dropped 68% before bottoming out on March 23. During that same period, American Airlines (NASDAQ:AAL) saw its value drop by 66%. United Airlines (NASDAQ:UAL) stock had been slipping since mid-January (its exposure to the Chinese market hurt it earlier than other airlines), but it fell a further 72%. Southwest Airlines (NYSE:LUV) dropped 44%.
Bottom Line on JBLU Stock
In November — back when a global pandemic on the scale of coronavirus was nothing more than a movie plot — InvestorPlace contributor Will Healy had JBLU featured on a list of stocks expected to soar in coming months. He pointed to the airline’s cost-cutting measures, and “the pattern of 20%-plus annual profit growth expected to continue for JBLU stock for the foreseeable future.”
At that time, JBLU stock was trading at just over $19, and had been unable to hit $20 in nearly two years. Will predicted that if it could break the $20 ceiling, JBLU would “soar.”
He was right. JetBlue stock closed at $21.56 on February 13. We all know what happened after that.
The question is, with JBLU currently trading at $9.19, is it a buy? The CARES Act aid is going to help to keep the airline afloat for several months, but the big unknown is how soon Americans will return to flying. Even the most bearish take on JetBlue sees the stock hitting the $10 level in 12 months — offering nearly 9% upside. Optimists think it could resume its “soaring,” hitting $24. The median take is in the $12 range, which still offers a healthy 30% upside.
Few analysts are recommending buying JBLU at the moment, preferring to see signs of a coronavirus recovery before committing. But if you are okay with some risk, JBLU stock has the potential to be a rewarding long-term investment.
Brad Moon has been writing for InvestorPlace.com since 2012. He also writes about stocks for Kiplinger and has been a senior contributor focusing on consumer technology for Forbes since 2015. As of this writing, Brad Moon did not hold a position in any of the aforementioned securities.
The post After JetBlue Receives CARES Act Aid, Is JBLU Stock a Buy? appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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During that same period, American Airlines (NASDAQ:AAL) saw its value drop by 66%. JetBlue says: “… every dollar of these funds will go directly to salary, wages and benefits for our Crewmembers through September 30.” The announcement of the CARES Act deal gave JBLU a bump. The CARES Act aid is going to help to keep the airline afloat for several months, but the big unknown is how soon Americans will return to flying.
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During that same period, American Airlines (NASDAQ:AAL) saw its value drop by 66%. And with CARES Act aid for JetBlue announced on April 14, the airline’s stock saw a big pop. JetBlue Lands CARES Act Aid, Stock Responds On April 14, JetBlue announced that it had reached tentative terms with the government to receive financial aid under the CARES Act.
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During that same period, American Airlines (NASDAQ:AAL) saw its value drop by 66%. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Airline stocks have been devastated by the novel coronavirus and its resulting travel restrictions. Bottom Line on JBLU Stock In November — back when a global pandemic on the scale of coronavirus was nothing more than a movie plot — InvestorPlace contributor Will Healy had JBLU featured on a list of stocks expected to soar in coming months.
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During that same period, American Airlines (NASDAQ:AAL) saw its value drop by 66%. 9 Asian Stocks to Buy for a Post-Coronavirus Recovery JetBlue says that its CARES Act aid will amount to $935.8 million. So have airline stocks.
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6029.0
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2020-04-20 00:00:00 UTC
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Monday's ETF with Unusual Volume: IYC
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https://www.nasdaq.com/articles/mondays-etf-with-unusual-volume%3A-iyc-2020-04-20
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The iShares U.S. Consumer Services ETF is seeing unusually high volume in afternoon trading Monday, with over 122,000 shares traded versus three month average volume of about 53,000. Shares of IYC were trading flat on the day.
Components of that ETF with the highest volume on Monday were American Airlines Group, trading off about 2% with over 27.8 million shares changing hands so far this session, and Delta Air Lines, down about 0.8% on volume of over 21.3 million shares. Wayfair is the component faring the best Monday, up by about 13.7% on the day, while Meredith is lagging other components of the iShares U.S. Consumer Services ETF, trading lower by about 6.5%.
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.
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The iShares U.S. Consumer Services ETF is seeing unusually high volume in afternoon trading Monday, with over 122,000 shares traded versus three month average volume of about 53,000. Components of that ETF with the highest volume on Monday were American Airlines Group, trading off about 2% with over 27.8 million shares changing hands so far this session, and Delta Air Lines, down about 0.8% on volume of over 21.3 million shares. 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.
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The iShares U.S. Consumer Services ETF is seeing unusually high volume in afternoon trading Monday, with over 122,000 shares traded versus three month average volume of about 53,000. Wayfair is the component faring the best Monday, up by about 13.7% on the day, while Meredith is lagging other components of the iShares U.S. Consumer Services ETF, trading lower by about 6.5%. 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.
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The iShares U.S. Consumer Services ETF is seeing unusually high volume in afternoon trading Monday, with over 122,000 shares traded versus three month average volume of about 53,000. Components of that ETF with the highest volume on Monday were American Airlines Group, trading off about 2% with over 27.8 million shares changing hands so far this session, and Delta Air Lines, down about 0.8% on volume of over 21.3 million shares. Wayfair is the component faring the best Monday, up by about 13.7% on the day, while Meredith is lagging other components of the iShares U.S. Consumer Services ETF, trading lower by about 6.5%.
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The iShares U.S. Consumer Services ETF is seeing unusually high volume in afternoon trading Monday, with over 122,000 shares traded versus three month average volume of about 53,000. Shares of IYC were trading flat on the day. Components of that ETF with the highest volume on Monday were American Airlines Group, trading off about 2% with over 27.8 million shares changing hands so far this session, and Delta Air Lines, down about 0.8% on volume of over 21.3 million shares.
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6030.0
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2020-04-20 00:00:00 UTC
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U.S. Treasury releases $2.9B in airline support, finalizes payroll agreements
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AAL
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https://www.nasdaq.com/articles/u.s.-treasury-releases-%242.9b-in-airline-support-finalizes-payroll-agreements-2020-04-20
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WASHINGTON, April 20 (Reuters) - The U.S. Treasury Department said on Monday it has disbursed $2.9 billion in initial payroll assistance to 54 smaller passenger carrier and two major passenger airlines, while it finalized grant agreements with six major airlines.
The Treasury is initially giving major airlines 50% of funds awarded and releasing the remainder in a series of payments. In total, Treasury is awarding U.S. passenger airlines $25 billion in funds earmarked for payroll costs. Airlines must repay 30% of the funds in low-interest loans and grant Treasury warrants equal to 10% of the loan amount.
Treasury said Monday it has finalized grant agreements with Allegiant Air, American Airlines AAL.O, Delta Air Lines DAL.N, Southwest Airlines LUV.N, Spirit Airlines SAVE.N, and United Airlines UAL.O.
Air carriers have been devastated by the coronavirus pandemic and seen U.S. travel demand fall by 95%.
(Reporting by David Shepardson)
((David.Shepardson@thomsonreuters.com; + 1 202 898 8324;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Treasury said Monday it has finalized grant agreements with Allegiant Air, American Airlines AAL.O, Delta Air Lines DAL.N, Southwest Airlines LUV.N, Spirit Airlines SAVE.N, and United Airlines UAL.O. WASHINGTON, April 20 (Reuters) - The U.S. Treasury Department said on Monday it has disbursed $2.9 billion in initial payroll assistance to 54 smaller passenger carrier and two major passenger airlines, while it finalized grant agreements with six major airlines. The Treasury is initially giving major airlines 50% of funds awarded and releasing the remainder in a series of payments.
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Treasury said Monday it has finalized grant agreements with Allegiant Air, American Airlines AAL.O, Delta Air Lines DAL.N, Southwest Airlines LUV.N, Spirit Airlines SAVE.N, and United Airlines UAL.O. WASHINGTON, April 20 (Reuters) - The U.S. Treasury Department said on Monday it has disbursed $2.9 billion in initial payroll assistance to 54 smaller passenger carrier and two major passenger airlines, while it finalized grant agreements with six major airlines. In total, Treasury is awarding U.S. passenger airlines $25 billion in funds earmarked for payroll costs.
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Treasury said Monday it has finalized grant agreements with Allegiant Air, American Airlines AAL.O, Delta Air Lines DAL.N, Southwest Airlines LUV.N, Spirit Airlines SAVE.N, and United Airlines UAL.O. WASHINGTON, April 20 (Reuters) - The U.S. Treasury Department said on Monday it has disbursed $2.9 billion in initial payroll assistance to 54 smaller passenger carrier and two major passenger airlines, while it finalized grant agreements with six major airlines. (Reporting by David Shepardson) ((David.Shepardson@thomsonreuters.com; + 1 202 898 8324;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Treasury said Monday it has finalized grant agreements with Allegiant Air, American Airlines AAL.O, Delta Air Lines DAL.N, Southwest Airlines LUV.N, Spirit Airlines SAVE.N, and United Airlines UAL.O. WASHINGTON, April 20 (Reuters) - The U.S. Treasury Department said on Monday it has disbursed $2.9 billion in initial payroll assistance to 54 smaller passenger carrier and two major passenger airlines, while it finalized grant agreements with six major airlines. Airlines must repay 30% of the funds in low-interest loans and grant Treasury warrants equal to 10% of the loan amount.
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6031.0
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2020-04-20 00:00:00 UTC
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Risk-Takers Have a Reasonable Shot With American Airlines Stock
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AAL
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https://www.nasdaq.com/articles/risk-takers-have-a-reasonable-shot-with-american-airlines-stock-2020-04-20
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The airlines are high-risk stocks here with passenger traffic down over 95% and American Airlines (AAL) is one of the riskiest in the sector. The ability of the airline sector to obtain government aid to cover payroll costs is a huge positive for the sector. The move eliminates the direst outcomes for the sector making American Airlines a risky way to play a rebound in air travel demand.
Big Government Grant
On April 14, the airline sector and the U.S. Treasury Department agreed to a deal on the Payroll Support Program part of the CARES act providing $25 billion worth of aid to the passenger air transport sector. With the largest employee base, American Airlines obtained the largest deal at $5.8 billion. The airline had pre-virus monthly payroll expenses of $1.2 billion.
As shareholders, the deal was disappointing in that 30% of the “grant” was via a $1.7 billion low-interest loan. Only $4.1 billion of the grant is free money, if the airline doesn’t lay off employees prior to October 1 along with agreeing to restrictions on executive compensation and the elimination of capital returns.
The deal wasn’t the best outcome for shareholders, but the move eliminates the dire outcomes. The airline is now able to remain ready for an eventual rebound in air travel with only a 3% hit to equity via the warrants issued to the Treasury.
Besides, Delta Air Lines (DAL) announced over 35,000 employees out of a base of 90,000 employees have already accepted unpaid leave options. The airlines have the potential to reduce costs closer to the levels of the grants making the loan portion of the grant usable for covering operating losses.
Deep Value Sprinkled With Risk
Last year, American Airlines generated over $3.7 billion of operating profits while taking a large hit from having to ground 737 Max planes. The stock has a market value down to only $4.7 billion leaving a major question of when or if the airline can ever return to previous profit levels.
The Treasury grant gives the sector about six months to recover before having to make any drastic changes to the business model or cut employees. The reduced jet fuel costs will help in a recovery as those prices should remain far below prior virus levels for years with reduced energy demand.
If American Airlines can just return to half of the previous operating profit levels, the stock trades at only 2x profit targets. Of course, the risk is that travel never returns to previous levels.
The airline is asking for another $4.75 billion in loans from the government at a cost of another 38 million warrants. If granted, the U.S. Treasury will own over 10% of the airline, but American Airlines will survive to fly another day and allowed to profit when passenger traffic returns to pre-virus levels.
Takeaway
The key investor takeaway is that American Airlines remains in a risky position until bookings start rebounding to levels above 50% of previous capacity levels. Anybody thinking passenger traffic returns to 75% of 2019 levels should load up on all airlines, especially American Airlines with the stock down over 60% from the February highs.
When looking at Wall Street’s stance, AAL’s current average price target implies double-digit upside, but based on all the ratings received over the past three months, AAL is actually a Moderate Sell consensus. While 3 analysts are on the Buy side, 5 say Hold and 7 have advise investors to jump out of the airplane. The latter camp includes J.P. Morgan's Garrett Nelson, who recently downgraded the stock from Buy to Sell, while withdrawing his price target. (See American Airlines 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.
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The airlines are high-risk stocks here with passenger traffic down over 95% and American Airlines (AAL) is one of the riskiest in the sector. When looking at Wall Street’s stance, AAL’s current average price target implies double-digit upside, but based on all the ratings received over the past three months, AAL is actually a Moderate Sell consensus. The move eliminates the direst outcomes for the sector making American Airlines a risky way to play a rebound in air travel demand.
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The airlines are high-risk stocks here with passenger traffic down over 95% and American Airlines (AAL) is one of the riskiest in the sector. When looking at Wall Street’s stance, AAL’s current average price target implies double-digit upside, but based on all the ratings received over the past three months, AAL is actually a Moderate Sell consensus. The ability of the airline sector to obtain government aid to cover payroll costs is a huge positive for the sector.
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The airlines are high-risk stocks here with passenger traffic down over 95% and American Airlines (AAL) is one of the riskiest in the sector. When looking at Wall Street’s stance, AAL’s current average price target implies double-digit upside, but based on all the ratings received over the past three months, AAL is actually a Moderate Sell consensus. If granted, the U.S. Treasury will own over 10% of the airline, but American Airlines will survive to fly another day and allowed to profit when passenger traffic returns to pre-virus levels.
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The airlines are high-risk stocks here with passenger traffic down over 95% and American Airlines (AAL) is one of the riskiest in the sector. When looking at Wall Street’s stance, AAL’s current average price target implies double-digit upside, but based on all the ratings received over the past three months, AAL is actually a Moderate Sell consensus. The airlines have the potential to reduce costs closer to the levels of the grants making the loan portion of the grant usable for covering operating losses.
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6032.0
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2020-04-20 00:00:00 UTC
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7 Strong Value Stocks to Buy for 2020
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AAL
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https://www.nasdaq.com/articles/7-strong-value-stocks-to-buy-for-2020-2020-04-20
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
[Editor’s note: “7 Strong Value Stocks to Buy for 2020” is regularly updated to include the most relevant information available.]
Value stocks can broadly be defined as stocks which trade at a discount to the market, typically measured on a price-earnings basis (i.e. stocks with lower price-earnings multiples than the market).
For a long time, these value stocks have been getting killed by growth stocks, or stocks which trade at a premium to the market.
But that may change in a big way for two reasons…
First, value stocks have hit an “inflection point” in terms of historical under-performance. Just look at this interesting chart, which has been circling on Twitter (NYSE:TWTR). It plots the relative performance of value stocks versus growth stocks on a 10-year annualized basis, and finds that over the past decade, value stocks have under-performed growth stocks by an average of 2.9% per year — the biggest under-performance on record.
The last time this number got nearly this low was at the peak of the dot-com bubble. Over the following decade, value stocks outperformed growth stocks by more than 10% per year.
In other words, history says it’s time for value stocks to shine.
Second, thanks to the coronavirus pandemic, we are increasingly entering an era of investment uncertainty and economic turbulence. Against such volatile backdrops, value stocks tend to perform better than growth stocks.
With that in mind, here are some of the top value stocks to buy in 2020:
AT&T (NYSE:T)
Target (NYSE:TGT)
Intel (NASDAQ:INTC)
Dollar Tree (NYSE:DLTR)
American Airlines (NYSE:AAL)
CVS (NASDAQ:CVS)
Bank of America (NYSE:BAC)
Let’s take an in-depth look at seven value stocks to consider buying for 2020:
Strong Value Stocks to Buy: AT&T (T)
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Source: Jonathan Weiss / Shutterstock.com
One value stock which outperformed in 2019 and should continue to outperform in 2020 is AT&T.
In 2019, shares of the telecommunications giant had their best year since 2006, rising 37% in anticipation of big 5G and streaming TV catalysts in 2020. Despite that run higher, AT&T stock is still very cheap at just about 9-times forward earnings, and the forthcoming 5G and streaming TV catalysts are still on the table.
To be sure, the coronavirus outbreak does present a sizable risk here. If Covid-19 tips the U.S. economy into a recession, then AT&T’s consumer demand trends will weaken, adding stress to an already highly levered balance sheet.
But, evidence shows that social distancing does work to quell the outbreak, and that if done properly, daily life can resume within a few weeks (see China). Thus, assuming the U.S. appropriately implements social distancing measures and that the economy can find its footing again in May or June, then the second-half of 2020 could be quite good for this company.
If all that happens, AT&T stock won’t stay this cheap for long.
Target (TGT)
Source: jejim / Shutterstock.com
Shares of general merchandise retailer Target should win in both the near- and long-term, making TGT a top value stock to consider buying amid recent weakness.
In the near-term, consumers in the U.S. are panic-buying as they prepare to be cooped up inside for several weeks. That should help boost Target’s sales amid the Covid-19 outbreak.
In the long-term, it appears that the U.S. is more aggressively responding to the outbreak via social distancing measures. Such measures should help curtail the spread of Covid-19, and ultimately cause the virus to “wash out” by the summer. The economy should get on normal footing. Consumers should get back to spending. And Target’s sales should rebound, thanks to the company’s favorable positioning in the retail market as a omni-channel, all-in-one retailer.
7 U.S. Stocks to Buy on Coronavirus Weakness
Overall, Target is a strong company, that should be able to weather a rough patch over the next few months, with a stock price that is deeply discounted at 14-times forward earnings.
Intel (INTC)
Source: Kate Krav-Rude / Shutterstock.com
Despite being exposed to multiple hyper-growth industries, semiconductor giant Intel is still a value stock that trades at just 12.8-times forward earnings.
This combination of big growth exposure and dirt cheap valuation is what makes Intel stock so attractive.
Over the next several years, Intel’s revenues and profits will continue to push higher, supported by rising demand for central processing units (CPUs) from end-markets like data-centers, autonomous driving, artificial intelligence, machine learning, the Internet of Things, so on and so forth. Sure, there’s a lot of competition in these markets. But Intel is the 400-pound gorilla in the industry, and its unrivaled size will enable the company to remain relevant in all of these growth markets for several years to come.
To be sure, coronavirus presents a significant risk for this company through supply chain disruptions and depressed global demand. But, such risks will prove to be short-lived. A lot of factories in China are already coming back online as spread has approach near-zero in that country. Assuming the outbreak follows a similarly trajectory everywhere else, then coronavirus spread will be near-zero within a few months, and global semiconductor supply and demand trends will get back to normal.
Out of fear, however, investors have sold Intel stock to levels which price in coronavirus-related weakness for a lot longer than just a few months. Take advantage of this fear. By mid-to-late 2020, coronavirus fears will subside and this dirt cheap value stock will rebound in a big way.
Dollar Tree (DLTR)
Source: digitalreflections / Shutterstock.com
Much like Target, value stock Dollar Tree should be a relative winner in both the near- and long-terms.
In the near-term, coronavirus-related panic-buying will provide a boost to Dollar Tree’s numbers, especially because Dollar Tree is a discount store, and consumers — who are also worried about the economy — will likely be looking to save money in their panic-buying efforts.
Long-term, Dollar Tree is a high-quality, high-margin discount retailer with a huge real estate footprint and an enduring consumer value prop. The company should continue to grow revenues and profits at a steady rate over the next several years. Coupled with a multi-year low 14-times forward earnings multiple, that should lead to strong share price returns.
Overall, then, near-term weakness in DLTR stock won’t last forever. Taking advantage of this massive sell-off should pay off in the long run.
American Airlines (AAL)
Source: GagliardiPhotography / Shutterstock.com
American Airlines stock has plunged on coronavirus concerns, and reasonably so. The world is shutting down, and no one is flying.
But, the U.S. government has pledged to support U.S. airlines like American during this time. Such support should help ease liquidity concerns, and give a nice boost to these stocks.
At the same time, it’s important to remember that coronavirus will cause a sharp but short-lived downturn in airline demand. Air travel has become a necessary component of modern travel. Once the virus clears up, consumers globally will fly again.
So, American is staring at a manageable short-term problem (thanks to government support), and the stock is trading at its lowest levels since 2012.
7 Stocks to Buy for February Contrarians
Long-term, the virus will pass, demand trends will rebound, and the this plunge in AAL stock will reverse course.
CVS (CVS)
Source: QualityHD / Shutterstock.com
A significant and impressive pharmacy retail turnaround — which started in 2019 — will continue over the next few years, and push CVS stock higher.
The pharmacy retail world became commoditized in the 2010s. Outside of proximity, it became tough to tell CVS, Walgreens (NASDAQ:WBA), Rite Aid (NYSE:RAD), and others apart. In the absence of product or platform differentiation, the drug retail world relied on price differentiation to drive growth. That meant price cuts, lower revenue per item, lower margins, and lower profits.
That’s exactly what happened at CVS. And lower profits is exactly why CVS stock stumbled from 2015 to 2018.
In 2019, CVS management figured out a way to differentiate their retail operations like HealthHUBs, or stores that include personalized, in-store health care services like nutrition counseling and blood pressure screenings. The thinking was that HealthHUBs would help CVS stores turn into one-stop-shops, and given how much consumers have gravitated towards one-stop-shops like Walmart (NYSE:WMT) and Target over the past few years, this transformation should reinvigorate traffic growth trends.
Management was right. As CVS has opened up more HealthHUBs, traffic, revenue, and profit trends have improved. CVS stock has rallied.
Over the next several years, CVS will continue to open up more HealthHUBs. Sure, Covid-19 will throw a wrench in the HealthHUB growth narrative for the next few months. But, by the back-half of 2020, the economy should get back on solid footing, and the HealthHUB growth narrative will resume.
When it does, the 2019 rally in CVS stock, will resume.
Bank of America (BAC)
Source: PL Gould / Shutterstock.com
Much like airline stocks, bank stocks have been killed recently. Bank of America stock has been no exception. Shares are down 34% over the past three months, and trade at their lowest valuation and highest yield in several years.
Of course, all of this negativity is warranted by a slowing U.S. economy, plunging yields, and a flat yield curve.
But, all of those adverse impacts are the result of Covid-19. While Covid-19 is a big near-term risk, it’s tough to see it lasting past the summer of 2020.
As such, in the back-half of the year, the U.S. economy should rebound, yields should rise, and the yield curve should normalize.
If all those things do materialize, then BAC stock will rally big from its currently dirt-cheap levels. To be sure, buying this stock at the current moment is risky, so I’d wait until more clarity emerges on the coronavirus front. But, once the data starts to turn a corner — and already is, to an extent, with the curve flattening — then I’d considering buying the dip here.
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 AAL.
The post 7 Strong Value Stocks to Buy for 2020 appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Target (NYSE:TGT) Intel (NASDAQ:INTC) Dollar Tree (NYSE:DLTR) American Airlines (NYSE:AAL) American Airlines (AAL) Source: GagliardiPhotography / Shutterstock.com American Airlines stock has plunged on coronavirus concerns, and reasonably so. 7 Stocks to Buy for February Contrarians Long-term, the virus will pass, demand trends will rebound, and the this plunge in AAL stock will reverse course.
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Target (NYSE:TGT) Intel (NASDAQ:INTC) Dollar Tree (NYSE:DLTR) American Airlines (NYSE:AAL) American Airlines (AAL) Source: GagliardiPhotography / Shutterstock.com American Airlines stock has plunged on coronavirus concerns, and reasonably so. 7 Stocks to Buy for February Contrarians Long-term, the virus will pass, demand trends will rebound, and the this plunge in AAL stock will reverse course.
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Target (NYSE:TGT) Intel (NASDAQ:INTC) Dollar Tree (NYSE:DLTR) American Airlines (NYSE:AAL) American Airlines (AAL) Source: GagliardiPhotography / Shutterstock.com American Airlines stock has plunged on coronavirus concerns, and reasonably so. 7 Stocks to Buy for February Contrarians Long-term, the virus will pass, demand trends will rebound, and the this plunge in AAL stock will reverse course.
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Target (NYSE:TGT) Intel (NASDAQ:INTC) Dollar Tree (NYSE:DLTR) American Airlines (NYSE:AAL) American Airlines (AAL) Source: GagliardiPhotography / Shutterstock.com American Airlines stock has plunged on coronavirus concerns, and reasonably so. 7 Stocks to Buy for February Contrarians Long-term, the virus will pass, demand trends will rebound, and the this plunge in AAL stock will reverse course.
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6033.0
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2020-04-20 00:00:00 UTC
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Should You Get Grocery Stocks Now?
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AAL
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https://www.nasdaq.com/articles/should-you-get-grocery-stocks-now-2020-04-20
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nan
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nan
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In this episode of Market Foolery, Chris Hill and Motley Fool analyst Andy Cross look at some business headlines from the markets. The earnings season is here, and two big banks came out with their first-quarter results. Major airlines reach an agreement with the Treasury Department. The guys also chat about retail space, the entertainment industry, and much more.
To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center. To get started investing, check out our quick-start guide to investing in stocks. A full transcript follows the video.
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This video was recorded on April 15, 2020.
Chris Hill: It's Wednesday, April 15. Welcome to Market Foolery. I'm Chris Hill. With me today: the one and only Andy Cross. Good to see you, my friend.
Andy Cross: Hey, Chris, how are you doing?
Hill: Hanging in there. I got coffee. I'm good.
Cross: Good. Yeah, me too.
Hill: We've got a lot going on. We've got retail, we've got airlines, we've got entertainment. But we're going to start today with the big banks, because it's earnings season, and as an industry, the big banks sort of lead the way.
Goldman Sachs (NYSE: GS) and Bank of America (NYSE: BAC) both out with first-quarter reports. Goldman Sachs' profits down 49%. [laughs] Bank of America can take some small solace in the fact that their first-quarter profits were only down 45%.
Cross: [laughs] Yeah, it's the real headline, I think, from the banks, Chris. It's just the loan loss reserves they're taking now in this quarter. So when you look across almost all of the banks, that's been the biggest hit to their profit picture. Their revenues were somewhere in the flat picture. For example, Goldman revenues were flat. JPMorgan's revenues were down, like, 3%. Wells Fargo was down about 18%. So the revenue lines weren't such the concern; it was really much more the profit picture, as you mentioned. And we're just seeing that show up in the earnings per share of these companies.
But the biggest part for that are these loan loss reserves that these banks have to set aside in the expectation that the economic crisis, the pandemic that we're facing, is going to cause some of their clients, both in the consumer side and the commercial side, to not pay their bills. And so they have to set aside reserves for that. So when you just look at what happened with Goldman, their earnings were down 46%, and they set aside $937 million this quarter. That's almost as much as they set aside for all of 2019, and that's 4 times the amount they set aside in the first quarter of 2019.
And you see the same thing across all of the big banks. JPM set aside an additional $6.8 billion. That's $4.4 billion on the consumer side, mostly for cardholders, and the rest on the commercial side, and across the entire company, they set aside $10 billion more in reserves than a year ago.
So you're seeing these banks really start to ramp up their preparation for what they expect to be a very tough market over the next year.
Hill: I would also think in the case, you know, for -- every one of these banks has an investment banking arm. Goldman Sachs is sort of the clubhouse leader. And I would think that as we are in this environment where it's really hard to imagine any company going public in the next, say, at least two months, probably closer to four to six months, that's one more thing that a bank like Goldman Sachs has to worry about.
Cross: Yeah, Chris, absolutely right. So there's just these very-high-margin parts to their business that are going to start to see the fluctuations, if not complete drops, because that market has really started to soften. What's interesting on the Goldman side -- and Goldman is really going through this reformatting under their new CEO -- the bank is really kind of struggling. It's known as such a class name in the banking space, but the stock has actually struggled and the returns on equity have actually trailed their peers over the last few years. So there's a real push by the new CEO, David Solomon, to start to really invigorate Goldman Sachs again.
So he had this whole plan, when he became the CEO after Lloyd Blankfein, just recently, and then obviously, the pandemic hit, so. But a bright spot to Goldman, a big part of their business has always been their trading revenues, and that's actually been kind of a little bit of an albatross for them over the past couple of years. But that actually was a bright spot in the first quarter.
The same thing with JPMorgan. Goldman's trading revenues were up 28%, and JPMorgan's trading revenues were up 32%. So because of all the volatility, because of all the frenetic trading activity we're seeing in the markets from both institutional clients and consumer clients for the big banks as most of the institutions were, we saw these results pop up for some of these larger banks, like, Goldman and JPM. So that was one small bright spot in a quarter that obviously, is showing a lot of pain.
JPMorgan's long-serving CEO -- probably the most respected name in finance, as we talked about, Jamie Dimon, who had suffered an emergency heart surgery a few months ago and came back to the job right as the pandemic was starting to really get going -- he put out his annual letter that he talks about every year and really tried to set the tone for the market ahead of what the financial institutions and banks will see over the next year. Because there's obviously a lot of concern with just the plumbing and the financial picture of U.S. banks.
Hill: Let's move on to the airline industry, because several airlines, including Delta (NYSE: DAL), American (NASDAQ: AAL), JetBlue (NASDAQ: JBLU) and Southwest (NYSE: LUV), have said that they have reached agreements with the U.S. Treasury Department on part of that $25 billion plan for payroll grants. Obviously, this is good news for those airlines and the people who work there, but it really does seem like this is -- I don't want to call it a Band-Aid, but it seems like it is a relatively short bridge that'll get them through the next couple of months, hopefully. But all the airlines really seem like they have their work cut out for them.
Cross: Chris, if not Band-Aid, bridge, I think, is a good term, apropos because, so of the $2.2 trillion in the stimulus package that was signed into law last week, or in late March. Now that the airlines are starting to work with the Treasury Department to figure out how they can access that, both, in grants and in loans. And as you mentioned, pretty much all of the airlines, all the major ones, are going to start tapping into this.
And this is obviously a needed step for these businesses that are really struggling. You are seeing bookings that are down 70%, 90% capacity in these companies. They have taken capacity out from their business, both domestic and international. So it's really starting, there's heavy fixed costs in these businesses. And when they have nobody flying and nobody buying tickets, especially business travel, which has really slowed down, you're starting to see it now show up in the potential future of these businesses.
But back to your bridge comment. I think the airlines, when I look at almost all the industries that operate and you think about the recovery patterns, I don't know if we're going to be in a V-shaped recovery or more of a U-shaped slow-growth recovery, both in the U.S. and worldwide. But I do think, the airlines, travel companies of all the industries, they will really be in the most flat-shaped recovery. And I think it'll take a while for consumers to be able to come back into the travel mode, get used to going back into airplanes, get used to going back into airports. I mean, airports basically, over the last 10, 20 years have become big retail destinations. And you were seeing now the foot traffic into airports drop off a cliff, and that's hurting the retail establishments inside these airports. So that industry is just going to go a long way to recover.
They needed this. They needed to be able to tap the U.S. government to help them support their business, because without that, you would see massive bankruptcies in the industry.
Hill: Let's move on to the retail industry, because we've got the March retail report, and it was, I think, every bit as bad as we were all expecting. Retail across the board down 8.7% in the month of March. That is the worst drop in history. And for context, I think, third on the list is the drop in retail that we saw in November 2008. And this was more than twice as bad in terms of percentages.
And you start going through this, Andy, and of course, the lone bright spot is grocery stores, up around 27%. But some of these other numbers in here, you look at clothing and clothing accessories down 50%. Motor vehicles down 25%. You know, these are not surprises. But kind of, like we saw with the monthly jobs report for March and we knew that it was much worse because they stopped collecting that data mid-month. It's the same thing with retail. You know, one of my thoughts when I was going through the March retail report was, "My God! How much worse is April going to be? Because then we'll have a full month of this."
Cross: Chris, it was a really devastating report. And I guess not too surprising, considering what we had seen in late February, and obviously, there's our own consumer behavior. But just for some context, first of all, that 8.7% number, Chris, you mentioned, is just a drop from February. So it's a month-over-month seasonally adjusted number. But historically, if you go back, they've collected this data since 1992. If you go back, usually that month-to-month change is a small less than 1% change, so the average is about 0.35%. So it's pretty tight, it's a very tight range. You're talking an average of 0.3% with a standard deviation, so change from that average of less than 1%. So you're really talking a very tight range. Here you're talking last month, we saw a drop of 8.7%. It's significant compared to the average and not in way outside the norm of what we see over the last few decades.
Like you mentioned, the worst number before this was in the great financial crisis when the number fell 3.8% and 3.9% back-to-back, so we're talking twice as much as that drop. So just some context for that about how significant this was, and just knowing how we have changed as consumers, it's evident, and now we're seeing it show up in the number.
As you mentioned, some of the areas really got hit, very significantly. And then you see spots like grocery stores actually have a very significant ramp, because as we are continuing to spend more and more at the groceries to try to stock up in preparation for the quarantine that we are all facing and now still face. And then you see things like food services and drinking places down 26% from the month before, and obviously just showing there the real impact. And that's having ripple effects, because when you talk about 10% to 20% of the U.S. employment is somehow tied to entertainment, travel, that area -- getting back to our airlines business -- that's why you're seeing these weekly unemployment claims jump up to 15 million, 17 million here in the U.S. So numbers that are now finally starting to kind of come out from the government, that are showing the real stress that the U.S. economy is under.
Hill: You know, grocery stocks, Safeway, etc., historically haven't been the greatest investments. And I'm wondering, and I actually haven't looked at them recently, but I look at this report [laughs] and it actually makes me think, "Well, wait a minute, in a world where grocery stores are at the top of the list for essential retail services, should I be looking at grocery stocks now?"
Cross: It's really interesting, Chris. I think a big part of that, because the grocery stores have very thin margins and then, when Amazon came in and bought Whole Foods, it really put a completely different picture into the competitive landscape for them, in already a shifting world when more and more of us are trying to order our groceries and pretty much everything online.
But now you're seeing some companies, like you mentioned, some grocery stores. I mean, just look at Kroger. When you look at the year-to-date chart, Kroger finished the year at around $28 and now it's past $32. So you are seeing some, "Hey, wow! there's maybe a little bit of life in these companies that had very thin profit margins, very competitive picture from larger players, a changing landscape with online ordering and consumer behaviors." And then just the fact that they are really price takers, not price givers. In fact, the suppliers have much more of the pricing power than they did and distribution may not be quite the competitive advantage that it once was.
I still think most of that has not changed. Maybe over the next year or two, these businesses will see some light, because as we are stocking more goods, especially nonperishable goods. I know every day [laughs] it seems like another box of Frito Lay Chips ends up at my doorstep as we continue to stock goods, preparing for a summer of quarantine for my family. That is, obviously, I think, going to be good for these businesses. But again, long term, I see nothing that -- the pandemic is changing the competitive advantage of these businesses. And so, I still expect their profit margins to remain thin, I still expect their cost structures to remain high and the revenues pretty scant.
So the valuations of these companies had dropped very low. So not surprised that we're seeing some uplift in the stock prices, but overall, I still don't think they're the greatest investment to me looking out the next three, five years.
Hill: So we've been talking a lot recently about the video streaming services. We talked about Roku (NASDAQ: ROKU) the other day, certainly Netflix (NASDAQ: NFLX), Disney+, as we're all in this situation. And Comcast has decided to roll out its new streaming service, which is called Peacock. It's actually launching today for members of the Comcast Xfinity X1 service and their Flex service. So if you're subscribers to those services, congratulations, you get the first look at Peacock.
I don't know, Andy, I'm sort of torn on this one, because I understand why Comcast has essentially made this decision to do this sort of slow rollout. And I think there's a version of this where it works out well for them, because everything I've read to this point says that, OK, they're coming out to existing subscribers of these two services then they're going to, sort of, slowly roll out to more and more audiences into 2021 when it sort of goes full blast. That's a very different strategy.
And I get that we're under different circumstances, but that's a very different strategy than what Disney did with Disney+, because what Disney did was, from their original timeline to when they actually launched it, it was about a year and a half. They kept tinkering with it, they kept trying to work on the interface, the programming, and then they unveiled it to everyone at once.
Seeing what Comcast is doing here, what's your thought of this strategy?
Cross: So I'm a Comcast shareholder, first of all, I'll just say that. And the streaming Peacock and the streaming business that they undoubtedly had to get into, from the competitive landscape considering all the streaming options out there and large companies that are now doing streaming, as we mentioned, Amazon, Apple, Netflix, obviously, and others. Roku, for example. So they had to do this.
I actually think this move, Chris -- different from what Disney did -- I actually think it's OK for Comcast, and here's why. So I have X1 here in my house, I don't have it in front of me, so I've to go check out if I have access to Peacock. They, obviously, have a huge library of programs, Parks and Recreation, The Office, 30 Rock, all those great shows.
We are all now at home. We are looking to consume content in ways that we've never done before. Our appetite to switch among providers and look for the content that we want is higher than ever before. Now, we might start to see a little bit of fatigue in that, but I think at least we're at home, we're hooked into our Wi-Fi. We are accessing digital media in ways, frequency, volume and variety like we've never done before.
So this will take a while for them to kind of -- as one of their executives said -- hit their stride as they go into 2021, and I think they're saying, "Listen, we're going to roll this out in a time when we know people are we looking for content because they're at home, and we're going to do it in a way that is going to serve customers who are really the ones that are tied into our network the most, and we're going to start there and iterate and build that out." And so, I applaud them for that approach. They still have their key subscription business tied to their cable offerings, that still generates the bulk of their cash flows and revenues.
So as they add these on, to do it in a way that will, kind of, start to utilize some of their programming and their library, tied to their consumers who are either most loyal or the ones that are tied into the X1 subscription offering and their package. I think it's actually a pretty smart move, and then they're going to, kind of, go and evaluate how it goes over the next year, year and a half, and then hopefully by 2021, they'll really start to have all the kinks worked out and they can go big time with it.
Hill: Well, and certainly for parents who maybe they've gone through the Disney+ library already. Comcast has got -- you know, they've got DreamWorks Animation, they've got the Despicable Me franchise, you know. They've got a pretty good library of not just television but movies as well.
Cross: Yeah, I think that's right. And obviously, at this time, it's like, content is king, right? So you want to really try to -- I mean, distribution is becoming almost, like, everybody is there because we are also tied into our Wi-Fi and streaming offerings. And now with 5G rolling out, we're going to have more and more of a need for content that we can watch over faster and faster networks.
So I really think those businesses -- I mean, Netflix is spending more than $10 billion, probably far higher than that, over the next couple of years on their content. We know Disney's library. We know the other libraries, we mentioned about Comcast, we know Apple is putting a lot of money into their offerings, as Amazon is as well.
So when you think about the companies that are going to end up probably doing the best, it is the ones that have the brand access, have the quality of programming and have the balance sheets that can sustain it. Comcast, much like Disney, they're not a one-trick pony, they have their core cable offering business, just like Disney has its theme parks and other lines of its businesses as well that gives it some diversification, unlike Netflix.
But Netflix, the stock has done so well over the past few months, mainly because it's the leader streaming and has the probably the best content for streaming, both in the U.S. and globally. Disney+, obviously, is a huge competitor and a very capable rival when you look at their library as well too, of course.
Hill: And for people who are big fans of the Fast & Furious movie franchise, like our friend and colleague Greg Robleto, yeah, that's on Peacock too. So yeah there's definitely a good library there.
Cross: Yeah. And, Chris, they have an ad-free version, they have an advertising version. So they're doing all the things that you're starting to see from, like, the likes of Roku and some of the other streaming offerings, to be able to -- both visual as well as audio, if you look at what Spotify has as well too. And Apple. So they are taking the right steps that I think is going to be good long-term for them.
Hill: Andy Cross, thanks for being here.
Cross: Hey, thanks, Chris, be safe.
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 Market Foolery. 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 Netflix and Roku. Chris Hill owns shares of Amazon and Walt Disney. The Motley Fool owns shares of and recommends Amazon, Apple, Delta Air Lines, Netflix, Roku, Southwest Airlines, Spotify Technology, and Walt Disney. The Motley Fool recommends JetBlue Airways and recommends the following options: long January 2021 $60 calls on Walt Disney, short January 2022 $1940 calls on Amazon, and long January 2022 $1920 calls on Amazon. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Hill: Let's move on to the airline industry, because several airlines, including Delta (NYSE: DAL), American (NASDAQ: AAL), JetBlue (NASDAQ: JBLU) and Southwest (NYSE: LUV), have said that they have reached agreements with the U.S. Treasury Department on part of that $25 billion plan for payroll grants. I know every day [laughs] it seems like another box of Frito Lay Chips ends up at my doorstep as we continue to stock goods, preparing for a summer of quarantine for my family. So this will take a while for them to kind of -- as one of their executives said -- hit their stride as they go into 2021, and I think they're saying, "Listen, we're going to roll this out in a time when we know people are we looking for content because they're at home, and we're going to do it in a way that is going to serve customers who are really the ones that are tied into our network the most, and we're going to start there and iterate and build that out."
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Hill: Let's move on to the airline industry, because several airlines, including Delta (NYSE: DAL), American (NASDAQ: AAL), JetBlue (NASDAQ: JBLU) and Southwest (NYSE: LUV), have said that they have reached agreements with the U.S. Treasury Department on part of that $25 billion plan for payroll grants. there's maybe a little bit of life in these companies that had very thin profit margins, very competitive picture from larger players, a changing landscape with online ordering and consumer behaviors." The Motley Fool owns shares of and recommends Amazon, Apple, Delta Air Lines, Netflix, Roku, Southwest Airlines, Spotify Technology, and Walt Disney.
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Hill: Let's move on to the airline industry, because several airlines, including Delta (NYSE: DAL), American (NASDAQ: AAL), JetBlue (NASDAQ: JBLU) and Southwest (NYSE: LUV), have said that they have reached agreements with the U.S. Treasury Department on part of that $25 billion plan for payroll grants. In this episode of Market Foolery, Chris Hill and Motley Fool analyst Andy Cross look at some business headlines from the markets. JPMorgan's long-serving CEO -- probably the most respected name in finance, as we talked about, Jamie Dimon, who had suffered an emergency heart surgery a few months ago and came back to the job right as the pandemic was starting to really get going -- he put out his annual letter that he talks about every year and really tried to set the tone for the market ahead of what the financial institutions and banks will see over the next year.
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Hill: Let's move on to the airline industry, because several airlines, including Delta (NYSE: DAL), American (NASDAQ: AAL), JetBlue (NASDAQ: JBLU) and Southwest (NYSE: LUV), have said that they have reached agreements with the U.S. Treasury Department on part of that $25 billion plan for payroll grants. Hill: Let's move on to the retail industry, because we've got the March retail report, and it was, I think, every bit as bad as we were all expecting. That is, obviously, I think, going to be good for these businesses.
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6034.0
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2020-04-17 00:00:00 UTC
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Delta Waives Flight Change Fees Thru September 2022
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AAL
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https://www.nasdaq.com/articles/delta-waives-flight-change-fees-thru-september-2022-2020-04-17
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The toll COVID-19 has taken on human health is staggering. Viewed in that context, the contagion's effects on individual travel plans pale in comparison. But on an individual level, many more millions of Americans are feeling the disruption to their lives more in the form of travel restrictions and problems dealing with corporate bureaucracy, than from actual illness.
This, at least, is something that Delta Air Lines (NYSE: DAL) can help with.
Image source: Delta Air Lines.
Two weeks ago, Delta took the then-unprecedented step of extending the value of "travel credits" issued in compensation for canceled flights "through May 31, 2022," about 18 months longer than rival airlines such as American (NASDAQ: AAL) or United (NASDAQ: UAL) had yet done. Today, Delta further relaxed its policies, announcing that it will waive "change fees" on tickets, utilizing those credits, "through September 30, 2022," for anyone who "has canceled travel from flights between March 2020 and September 2020."
Additionally, Delta says it will "cap ... fares for travel throughout the U.S. and Canada through May 31, 2020," even as it tweaks its boarding procedures to limit passenger exposure to coronavirus.
As of this moment, neither American nor United has fully matched Delta's move. To encourage new flyers, American will waive change fees through the end of 2021 for tickets bought up until the end of May 2020. United change fee waivers extend "through 2020" only.
10 stocks we like better than Delta Air Lines
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Delta Air Lines wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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*Stock Advisor returns as of April 16, 2020
Rich Smith has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Delta Air Lines. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Two weeks ago, Delta took the then-unprecedented step of extending the value of "travel credits" issued in compensation for canceled flights "through May 31, 2022," about 18 months longer than rival airlines such as American (NASDAQ: AAL) or United (NASDAQ: UAL) had yet done. But on an individual level, many more millions of Americans are feeling the disruption to their lives more in the form of travel restrictions and problems dealing with corporate bureaucracy, than from actual illness. Additionally, Delta says it will "cap ... fares for travel throughout the U.S. and Canada through May 31, 2020," even as it tweaks its boarding procedures to limit passenger exposure to coronavirus.
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Two weeks ago, Delta took the then-unprecedented step of extending the value of "travel credits" issued in compensation for canceled flights "through May 31, 2022," about 18 months longer than rival airlines such as American (NASDAQ: AAL) or United (NASDAQ: UAL) had yet done. Today, Delta further relaxed its policies, announcing that it will waive "change fees" on tickets, utilizing those credits, "through September 30, 2022," for anyone who "has canceled travel from flights between March 2020 and September 2020." To encourage new flyers, American will waive change fees through the end of 2021 for tickets bought up until the end of May 2020.
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Two weeks ago, Delta took the then-unprecedented step of extending the value of "travel credits" issued in compensation for canceled flights "through May 31, 2022," about 18 months longer than rival airlines such as American (NASDAQ: AAL) or United (NASDAQ: UAL) had yet done. Today, Delta further relaxed its policies, announcing that it will waive "change fees" on tickets, utilizing those credits, "through September 30, 2022," for anyone who "has canceled travel from flights between March 2020 and September 2020." 10 stocks we like better than Delta Air Lines When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen.
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Two weeks ago, Delta took the then-unprecedented step of extending the value of "travel credits" issued in compensation for canceled flights "through May 31, 2022," about 18 months longer than rival airlines such as American (NASDAQ: AAL) or United (NASDAQ: UAL) had yet done. Today, Delta further relaxed its policies, announcing that it will waive "change fees" on tickets, utilizing those credits, "through September 30, 2022," for anyone who "has canceled travel from flights between March 2020 and September 2020." United change fee waivers extend "through 2020" only.
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6035.0
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2020-04-17 00:00:00 UTC
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U.S. airlines sitting on $10 billion owed to consumers for canceled flights, lawmakers say
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AAL
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https://www.nasdaq.com/articles/u.s.-airlines-sitting-on-%2410-billion-owed-to-consumers-for-canceled-flights-lawmakers-say
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nan
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By David Shepardson and Tracy Rucinski
April 17 (Reuters) - U.S. airlines are estimated to be sitting on more than $10 billion in travel vouchers that should have been cash refunds from canceled flights, a group of senators released on Friday.
Many U.S. airlines are cancelling between 60% and 80% of their flights, and under federal law passengers on those flights are entitled to full refunds, Senators Ed Markey, Elizabeth Warren and Richard Blumenthal said in a statement.
"However, many airlines have been obfuscating this right by offering travel vouchers as the default option, requiring passengers to take burdensome steps to request refunds instead," they said.
The Democratic senators had asked Alaska Air Group IncALK.N, Allegiant Air, American Airlines AAL.O, Delta Air Lines Inc DAL.N, Frontier Airlines, Hawaiian Airlines HA.O, JetBlue Airways Corp JBLU.O, Southwest Airlines Co LUV.N, Spirit Airlines Inc SAVE.N, Sun Country Airlines, and United Airlines UAL.O to each provide details on their refund policies during the pandemic.
In the airline replies, which were reviewed by Reuters, most did not share the total value of the travel vouchers and credits they have issued during the pandemic.
But JetBlue, which has 5.5% of the domestic market share, said it issued over $20 million per day of travel credits to consumers in the first few weeks of March.
"Assuming a similar trend throughout the industry over the last month, this figure could mean that the airlines are sitting on more than $10 billion in customer cash," the lawmakers said, while inviting airlines to provide more information if they dispute the figure.
According to their findings, airlines are offering cash refunds when the company itself cancels a flight, as required by the U.S. Transportation Department, but only Allegiant and Spirit are offering refunds to passengers who voluntarily cancel their own tickets.
"None of the biggest carriers with the most revenue, including United, American, Delta, and Southwest, offer similar refunds," it said.
In their replies the airlines generally said their policies are consistent with DOT guidelines.
Sun Country, a Minnesota-based ultra low-cost carrier, said refunding all of its non-refundable tickets outside of DOT guidelines "would put the company's future at risk."
Among replies by larger carriers, Delta said it had processed over 1 million refunds totaling more than $500 million in March, for passengers that had requested a cash refund for flights that Delta canceled or changed.
American Airlines said in its reply that over 90% of the customers who were offered a refund for flights the company itself canceled chose that option over a travel voucher.
If passengers do not specifically request a refund, they are issued a travel voucher. While many airlines have made the vouchers valid for up to two years, some airlines' vouchers expire within one year.
U.S. airlines are set to soon receive $25 billion in government payroll aid, much of it in the form of free cash, and can also apply for another $25 billion in government loans to help them weather the coronavirus downturn.
"The airline industry received its $50 billion taxpayer bailout, so the least it can do is offer full refunds--without forcing customers to jump through hoops. All passengers deserve a full cash refund during this unprecedented time," said Consumer Reports aviation adviser William McGee in a statement.
The nonprofit organization, which said it has heard from thousands of affected passengers, launched a petition on Friday for airlines to refund money to all travelers who had their flights impacted by the coronavirus crisis.
Two weeks ago, the Transportation Department reminded airlines that they are obligated to refund tickets when they cancel a flight or make a significant flight schedule change that passengers opt not to accept, but did not take any immediate action against airlines.
The department said given the massive crisis it "will exercise its prosecutorial discretion and provide carriers an opportunity to become compliant before taking further action.”
EXCLUSIVE-Major U.S. airlines eyeing government loans after grants -sources
Major U.S. airlines accept government aid for payrolls; American and Alaska also seeking loans
(Reporting by Tracy Rucinski and David Shepardson Editing by Chizu Nomiyama and Lisa Shumaker)
((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.
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The Democratic senators had asked Alaska Air Group IncALK.N, Allegiant Air, American Airlines AAL.O, Delta Air Lines Inc DAL.N, Frontier Airlines, Hawaiian Airlines HA.O, JetBlue Airways Corp JBLU.O, Southwest Airlines Co LUV.N, Spirit Airlines Inc SAVE.N, Sun Country Airlines, and United Airlines UAL.O to each provide details on their refund policies during the pandemic. By David Shepardson and Tracy Rucinski April 17 (Reuters) - U.S. airlines are estimated to be sitting on more than $10 billion in travel vouchers that should have been cash refunds from canceled flights, a group of senators released on Friday. The nonprofit organization, which said it has heard from thousands of affected passengers, launched a petition on Friday for airlines to refund money to all travelers who had their flights impacted by the coronavirus crisis.
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The Democratic senators had asked Alaska Air Group IncALK.N, Allegiant Air, American Airlines AAL.O, Delta Air Lines Inc DAL.N, Frontier Airlines, Hawaiian Airlines HA.O, JetBlue Airways Corp JBLU.O, Southwest Airlines Co LUV.N, Spirit Airlines Inc SAVE.N, Sun Country Airlines, and United Airlines UAL.O to each provide details on their refund policies during the pandemic. According to their findings, airlines are offering cash refunds when the company itself cancels a flight, as required by the U.S. Transportation Department, but only Allegiant and Spirit are offering refunds to passengers who voluntarily cancel their own tickets. The department said given the massive crisis it "will exercise its prosecutorial discretion and provide carriers an opportunity to become compliant before taking further action.” EXCLUSIVE-Major U.S. airlines eyeing government loans after grants -sources Major U.S. airlines accept government aid for payrolls; American and Alaska also seeking loans (Reporting by Tracy Rucinski and David Shepardson Editing by Chizu Nomiyama and Lisa Shumaker) ((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.
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The Democratic senators had asked Alaska Air Group IncALK.N, Allegiant Air, American Airlines AAL.O, Delta Air Lines Inc DAL.N, Frontier Airlines, Hawaiian Airlines HA.O, JetBlue Airways Corp JBLU.O, Southwest Airlines Co LUV.N, Spirit Airlines Inc SAVE.N, Sun Country Airlines, and United Airlines UAL.O to each provide details on their refund policies during the pandemic. According to their findings, airlines are offering cash refunds when the company itself cancels a flight, as required by the U.S. Transportation Department, but only Allegiant and Spirit are offering refunds to passengers who voluntarily cancel their own tickets. Two weeks ago, the Transportation Department reminded airlines that they are obligated to refund tickets when they cancel a flight or make a significant flight schedule change that passengers opt not to accept, but did not take any immediate action against airlines.
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The Democratic senators had asked Alaska Air Group IncALK.N, Allegiant Air, American Airlines AAL.O, Delta Air Lines Inc DAL.N, Frontier Airlines, Hawaiian Airlines HA.O, JetBlue Airways Corp JBLU.O, Southwest Airlines Co LUV.N, Spirit Airlines Inc SAVE.N, Sun Country Airlines, and United Airlines UAL.O to each provide details on their refund policies during the pandemic. According to their findings, airlines are offering cash refunds when the company itself cancels a flight, as required by the U.S. Transportation Department, but only Allegiant and Spirit are offering refunds to passengers who voluntarily cancel their own tickets. Among replies by larger carriers, Delta said it had processed over 1 million refunds totaling more than $500 million in March, for passengers that had requested a cash refund for flights that Delta canceled or changed.
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6036.0
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2020-04-17 00:00:00 UTC
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Why Airline Stocks Are Up Today
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AAL
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https://www.nasdaq.com/articles/why-airline-stocks-are-up-today-2020-04-17
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What happened
Markets jumped on Friday on news of progress treating COVID-19 and talk of soon reopening the economy, and airline stocks joined the surge higher. Airlines have been hit hard by the pandemic, and the industry needs a rapid recovery to avoid further downsizing.
Shares of American Airlines Group (NASDAQ: AAL), Hawaiian Holdings (NASDAQ: HA), and Spirit Airlines (NYSE: SAVE), three companies that are arguably the airlines most in need of a quick recovery, all were up 8% at the opening, while shares of Delta Air Lines (NYSE: DAL), United Airlines Holdings (NASDAQ: UAL), Southwest Airlines (NYSE: LUV), Alaska Air Group (NYSE: ALK), JetBlue Airways (NASDAQ: JBLU), and Allegiant Travel (NASDAQ: ALGT) all gained more than 5%.
The stocks gave back some of those gains by midday, but all were still easily outperforming the S&P 500.
So what
The airline industry has seen a lot of disruption in just the past two months, with the pandemic all but eliminating travel demand and causing companies to cut schedules, ground planes, and seek other ways to reduce costs.
The government came through with $50 billion in stimulus funding designed to keep employees on the payroll and buy the industry time for a recovery, but the fate of at least some of these carriers is going to come down to how quickly that recovery happens.
Image source: Getty Images.
The airlines got good news on that front on Friday, as policymakers began to discuss the parameters needed to begin reopening businesses and lifting shelter-in-place orders. It's likely to take time for the economic recovery to begin, and expect the response to be staggered across the nation. But the discussions at least offer some amount of hope that normal activity might soon be allowed to resume.
Airlines for now are holding off on layoffs, one of the conditions attached to the bailout bill. But the companies are concerned that drastic actions might have to be taken once the bailout-imposed restrictions expire at the end of September.
United execs have warned employees that they expect "our airline, and our overall workforce, to be smaller than it is today." And Southwest, which famously was able to avoid layoffs following the attacks of Sept. 11, has reportedly begun discussions with union leaders on potential cuts in the fall.
American is widely seen as the major airline most vulnerable to a prolonged slump due to its industry-high debt load, while Hawaiian with its niche network and reliance on high-cost trans-Pacific flying is ill suited for an extended downturn. Spirit to date is the only major airline not to receive bailout funds, although it is said to be in discussions for them.
Now what
The tone of Friday's headlines is undeniably more positive than in recent days, but it is important that airline investors not get ahead of themselves. I'm optimistic the industry can weather the storm ahead, but airlines are unlikely to see a quick recovery.
Even if the worst of the pandemic is soon behind us and businesses begin to reopen, the U.S. economy is probably already in a recession or will soon fall into one. Air traffic demand is likely to be muted through the remainder of 2020 at a minimum, and I believe it will take at least two years, if not longer, for the industry to recover to pre-pandemic levels.
There's no rush to buy into these shares, and if investors do want to buy in and wait out a recovery, they should stick to top operators like Delta and Southwest. Today's headlines offer reason for hope, but the journey ahead is still likely to include significant turbulence.
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 Delta Air Lines, Southwest Airlines, and Spirit Airlines. The Motley Fool recommends Alaska Air Group, Hawaiian Holdings, and JetBlue Airways. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shares of American Airlines Group (NASDAQ: AAL), Hawaiian Holdings (NASDAQ: HA), and Spirit Airlines (NYSE: SAVE), three companies that are arguably the airlines most in need of a quick recovery, all were up 8% at the opening, while shares of Delta Air Lines (NYSE: DAL), United Airlines Holdings (NASDAQ: UAL), Southwest Airlines (NYSE: LUV), Alaska Air Group (NYSE: ALK), JetBlue Airways (NASDAQ: JBLU), and Allegiant Travel (NASDAQ: ALGT) all gained more than 5%. So what The airline industry has seen a lot of disruption in just the past two months, with the pandemic all but eliminating travel demand and causing companies to cut schedules, ground planes, and seek other ways to reduce costs. The airlines got good news on that front on Friday, as policymakers began to discuss the parameters needed to begin reopening businesses and lifting shelter-in-place orders.
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Shares of American Airlines Group (NASDAQ: AAL), Hawaiian Holdings (NASDAQ: HA), and Spirit Airlines (NYSE: SAVE), three companies that are arguably the airlines most in need of a quick recovery, all were up 8% at the opening, while shares of Delta Air Lines (NYSE: DAL), United Airlines Holdings (NASDAQ: UAL), Southwest Airlines (NYSE: LUV), Alaska Air Group (NYSE: ALK), JetBlue Airways (NASDAQ: JBLU), and Allegiant Travel (NASDAQ: ALGT) all gained more than 5%. The Motley Fool owns shares of and recommends Delta Air Lines, Southwest Airlines, and Spirit Airlines. The Motley Fool recommends Alaska Air Group, Hawaiian Holdings, and JetBlue Airways.
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Shares of American Airlines Group (NASDAQ: AAL), Hawaiian Holdings (NASDAQ: HA), and Spirit Airlines (NYSE: SAVE), three companies that are arguably the airlines most in need of a quick recovery, all were up 8% at the opening, while shares of Delta Air Lines (NYSE: DAL), United Airlines Holdings (NASDAQ: UAL), Southwest Airlines (NYSE: LUV), Alaska Air Group (NYSE: ALK), JetBlue Airways (NASDAQ: JBLU), and Allegiant Travel (NASDAQ: ALGT) all gained more than 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 owns shares of and recommends Delta Air Lines, Southwest Airlines, and Spirit Airlines.
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Shares of American Airlines Group (NASDAQ: AAL), Hawaiian Holdings (NASDAQ: HA), and Spirit Airlines (NYSE: SAVE), three companies that are arguably the airlines most in need of a quick recovery, all were up 8% at the opening, while shares of Delta Air Lines (NYSE: DAL), United Airlines Holdings (NASDAQ: UAL), Southwest Airlines (NYSE: LUV), Alaska Air Group (NYSE: ALK), JetBlue Airways (NASDAQ: JBLU), and Allegiant Travel (NASDAQ: ALGT) all gained more than 5%. That's right -- they think these 10 stocks are even better buys. The Motley Fool owns shares of and recommends Delta Air Lines, Southwest Airlines, and Spirit Airlines.
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6037.0
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2020-04-17 00:00:00 UTC
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UAL Stock Isn’t a Buy Because the Bailout Won’t Make People Travel
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AAL
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https://www.nasdaq.com/articles/ual-stock-isnt-a-buy-because-the-bailout-wont-make-people-travel-2020-04-17
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
This week was a big one for United Airlines (NASDAQ:UAL) as the firm finally came to an agreement with the U.S. government regarding a bailout package. The deal sent UAL stock 7% higher on Tuesday, though the airline is still trading nearly 70% lower so far this year.
Source: NextNewMedia / Shutterstock.com
The bailout package is certainly something to cheer— it’s aimed at tiding the industry over until air travel can resume and the virus is contained.
According to American Airlines (NASDAQ:AAL) CEO Doug Parker, the Treasury’s $25 billion aid package assumes air travel will resume to near-normal levels by the end of September.
By accepting these funds, we have happily agreed to not involuntarily furlough or reduce the hourly pay rates of our U.S.-based team members through Sept. 30, at which point we hope and expect that Americans are regularly flying again
UAL Stock and a Long-Term Travel Dip
While we’ve seen encouraging signs that the novel coronavirus is starting to retreat in many areas, it’s worth noting that the likely reason for that is social distancing.
9 Asian Stocks to Buy for a Post-Coronavirus Recovery
In the absence of a viable vaccine, social distancing will probably become the new normal. Many, including FOMC member Neel Kashkari, say we can expect to see rolling shutdowns to prevent future flare-ups for the next 18 months.
That’s going to be disastrous for air travel. If lockdown measures are lifted but social distancing is still recommended, air travel is going to be one of the last things to return. Not only because people will be hesitant to fly in close contact with so many people, but also because this period of lockdown has made remote meetings the new norm.
Once the economy fires up again, corporate spending is unlikely to ramp up right away. Business travel will probably be one of the last things to come back. Being forced to work from home has caused many firms to invest in the necessary technology and training that allows for remote meetings.
That will probably stick— even if coronavirus is contained. That’s 12% of airline passengers reduced in the long term. What’s more, business travel is lucrative for airlines, business travelers can account for up to 75% of an airline’s profits on a given flight.
UAL Stock Has a Long Recovery Ahead
So, do you buy UAL stock now that the bailout has been agreed to? I think it’s probably too early. If social distancing continues long after the economy has been restarted, the airlines are going to need a bailout.
While I’ll concede that airline travel might resume in September, I don’t think it will be anywhere near the levels it was pre-pandemic.
This government bailout was certainly a boon for the industry, but I believe it’s going to be the first of many.
There’s another reason I wouldn’t rush out to buy UAL stock on the bailout news— debt. United has $13.37 billion worth of long term debt which gives it a debt to equity ratio of 115.91%. Compared to peers Southwest (NYSE:LUV) and Delta (NYSE:DAL), that’s the highest debt obligation by far. Delta comes in second with a debt to equity ratio of 57.77%.
That makes UAL one of the worst picks while the industry is struggling because not only does the firm have to worry about holding on to employees and keeping operations ticking over, but it also has to service more debt than its peers.
The Bottom Line
Investing in airlines as the world breaks out of the coronavirus crisis is certainly something investors should be considering. The government is unlikely to let them go under and more bailout money is likely in the event that this week’s package wasn’t enough.
With that said, I don’t think it’s time yet. The coronavirus crisis is still largely out of control and without a widely-accepted medical intervention, it could be for some time. Airline travel will be one of the last parts of the economy to recover, so your capital would be better deployed elsewhere.
If you must buy an airline stock, UAL isn’t the best choice. Instead, Southwest, with its modest debt pile and strong position in the U.S. market would be my pick. As travel starts to ramp back up, domestic will likely be first to rise because of its relatively lower cost and worries about international coronavirus containment.
As of this writing, Laura Hoy did not hold a position in any of the aforementioned securities.
The post UAL Stock Isn’t a Buy Because the Bailout Won’t Make People Travel appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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According to American Airlines (NASDAQ:AAL) CEO Doug Parker, the Treasury’s $25 billion aid package assumes air travel will resume to near-normal levels by the end of September. By accepting these funds, we have happily agreed to not involuntarily furlough or reduce the hourly pay rates of our U.S.-based team members through Sept. 30, at which point we hope and expect that Americans are regularly flying again UAL Stock and a Long-Term Travel Dip While we’ve seen encouraging signs that the novel coronavirus is starting to retreat in many areas, it’s worth noting that the likely reason for that is social distancing. That makes UAL one of the worst picks while the industry is struggling because not only does the firm have to worry about holding on to employees and keeping operations ticking over, but it also has to service more debt than its peers.
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According to American Airlines (NASDAQ:AAL) CEO Doug Parker, the Treasury’s $25 billion aid package assumes air travel will resume to near-normal levels by the end of September. United has $13.37 billion worth of long term debt which gives it a debt to equity ratio of 115.91%. If you must buy an airline stock, UAL isn’t the best choice.
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According to American Airlines (NASDAQ:AAL) CEO Doug Parker, the Treasury’s $25 billion aid package assumes air travel will resume to near-normal levels by the end of September. InvestorPlace - Stock Market News, Stock Advice & Trading Tips This week was a big one for United Airlines (NASDAQ:UAL) as the firm finally came to an agreement with the U.S. government regarding a bailout package. By accepting these funds, we have happily agreed to not involuntarily furlough or reduce the hourly pay rates of our U.S.-based team members through Sept. 30, at which point we hope and expect that Americans are regularly flying again UAL Stock and a Long-Term Travel Dip While we’ve seen encouraging signs that the novel coronavirus is starting to retreat in many areas, it’s worth noting that the likely reason for that is social distancing.
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According to American Airlines (NASDAQ:AAL) CEO Doug Parker, the Treasury’s $25 billion aid package assumes air travel will resume to near-normal levels by the end of September. Source: NextNewMedia / Shutterstock.com The bailout package is certainly something to cheer— it’s aimed at tiding the industry over until air travel can resume and the virus is contained. UAL Stock Has a Long Recovery Ahead So, do you buy UAL stock now that the bailout has been agreed to?
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6038.0
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2020-04-17 00:00:00 UTC
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U.S. airlines sitting on $10 billion in travel vouchers, lawmakers say
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AAL
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https://www.nasdaq.com/articles/u.s.-airlines-sitting-on-%2410-billion-in-travel-vouchers-lawmakers-say-2020-04-17
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nan
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nan
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By David Shepardson and Tracy Rucinski
April 17 (Reuters) - U.S. airlines are estimated to be sitting on more than $10 billion in travel vouchers that should have been cash refunds from canceled flights, a group of senators released on Friday.
Many U.S. airlines are cancelling between 60% and 80% of their flights, and under federal law passengers on those flights are entitled to full refunds, Senators Ed Markey, Elizabeth Warren and Richard Blumenthal said in a statement.
"However, many airlines have been obfuscating this right by offering travel vouchers as the default option, requiring passengers to take burdensome steps to request refunds instead," they said.
The Democratic senators had asked Alaska Airlines ALK.N, Allegiant Air, American Airlines AAL.O, Delta Air Lines DAL.N, Frontier Airlines, Hawaiian Airlines HA.O, JetBlue Airways JBLU.O, Southwest Airlines LUV.N, Spirit Airlines SAVE.N, Sun Country Airlines, and United Airlines UAL.O to each provide details on their refund policies during the pandemic.
In the airline replies, which were reviewed by Reuters, most did not share the total value of the travel vouchers and credits they have issued during the pandemic.
But JetBlue, which has 5.5% of the domestic market share, said it issued over $20 million per day of travel credits to consumers in the first few weeks of March.
"Assuming a similar trend throughout the industry over the last month, this figure could mean that the airlines are sitting on more than $10 billion in customer cash," the lawmakers said, while inviting airlines to provide more information if they dispute the figure.
According to their findings, airlines are offering cash refunds when the company itself cancels a flight, as required by the U.S. Transportation Department, but only Allegiant and Spirit are offering refunds to passengers who voluntarily cancel their own tickets.
"None of the biggest carriers with the most revenue, including United, American, Delta, and Southwest, offer similar refunds," it said.
In their replies the airlines generally said their policies are consistent with DOT guidelines.
Sun Country, a Minnesota-based ultra low cost carrier, said refunding all of its non-refundable tickets outside of DOT guidelines "would put the company's future at risk."
Among replies by larger carriers, Delta said it had processed over 1 million refunds totaling more than $500 million in March, for passengers that had requested a cash refund for flights that Delta canceled or changed.
American Airlines said in its reply that over 90% of the customers who were offered a refund for flights the company itself canceled chose that option over a travel voucher.
If passengers do not specifically request a refund, they are issued a travel voucher. While many airlines have made the vouchers valid for up to two years, some airlines' vouchers expire within one year.
U.S. airlines are set to soon receive $25 billion in government payroll aid, much of it in the form of free cash, and can also apply for another $25 billion in government loans to help them weather the coronavirus downturn.
Two weeks ago, the Transportation Department issued a notice to airlines reminding them they are obligated to refund tickets when they cancel a flight or make a significant flight schedule change that passengers opt not to accept, but did not take any immediate action against airlines.
The department said given the massive crisis it "will exercise its prosecutorial discretion and provide carriers an opportunity to become compliant before taking further action.”
(Reporting by Tracy Rucinski and David Shepardson Editing by Chizu Nomiyama)
((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.
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The Democratic senators had asked Alaska Airlines ALK.N, Allegiant Air, American Airlines AAL.O, Delta Air Lines DAL.N, Frontier Airlines, Hawaiian Airlines HA.O, JetBlue Airways JBLU.O, Southwest Airlines LUV.N, Spirit Airlines SAVE.N, Sun Country Airlines, and United Airlines UAL.O to each provide details on their refund policies during the pandemic. By David Shepardson and Tracy Rucinski April 17 (Reuters) - U.S. airlines are estimated to be sitting on more than $10 billion in travel vouchers that should have been cash refunds from canceled flights, a group of senators released on Friday. "However, many airlines have been obfuscating this right by offering travel vouchers as the default option, requiring passengers to take burdensome steps to request refunds instead," they said.
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The Democratic senators had asked Alaska Airlines ALK.N, Allegiant Air, American Airlines AAL.O, Delta Air Lines DAL.N, Frontier Airlines, Hawaiian Airlines HA.O, JetBlue Airways JBLU.O, Southwest Airlines LUV.N, Spirit Airlines SAVE.N, Sun Country Airlines, and United Airlines UAL.O to each provide details on their refund policies during the pandemic. According to their findings, airlines are offering cash refunds when the company itself cancels a flight, as required by the U.S. Transportation Department, but only Allegiant and Spirit are offering refunds to passengers who voluntarily cancel their own tickets. Among replies by larger carriers, Delta said it had processed over 1 million refunds totaling more than $500 million in March, for passengers that had requested a cash refund for flights that Delta canceled or changed.
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The Democratic senators had asked Alaska Airlines ALK.N, Allegiant Air, American Airlines AAL.O, Delta Air Lines DAL.N, Frontier Airlines, Hawaiian Airlines HA.O, JetBlue Airways JBLU.O, Southwest Airlines LUV.N, Spirit Airlines SAVE.N, Sun Country Airlines, and United Airlines UAL.O to each provide details on their refund policies during the pandemic. According to their findings, airlines are offering cash refunds when the company itself cancels a flight, as required by the U.S. Transportation Department, but only Allegiant and Spirit are offering refunds to passengers who voluntarily cancel their own tickets. Two weeks ago, the Transportation Department issued a notice to airlines reminding them they are obligated to refund tickets when they cancel a flight or make a significant flight schedule change that passengers opt not to accept, but did not take any immediate action against airlines.
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The Democratic senators had asked Alaska Airlines ALK.N, Allegiant Air, American Airlines AAL.O, Delta Air Lines DAL.N, Frontier Airlines, Hawaiian Airlines HA.O, JetBlue Airways JBLU.O, Southwest Airlines LUV.N, Spirit Airlines SAVE.N, Sun Country Airlines, and United Airlines UAL.O to each provide details on their refund policies during the pandemic. By David Shepardson and Tracy Rucinski April 17 (Reuters) - U.S. airlines are estimated to be sitting on more than $10 billion in travel vouchers that should have been cash refunds from canceled flights, a group of senators released on Friday. Among replies by larger carriers, Delta said it had processed over 1 million refunds totaling more than $500 million in March, for passengers that had requested a cash refund for flights that Delta canceled or changed.
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6039.0
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2020-04-17 00:00:00 UTC
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BUZZ-U.S. STOCKS ON THE MOVE-Netflix, Cutera, Moderna
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AAL
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https://www.nasdaq.com/articles/buzz-u.s.-stocks-on-the-move-netflix-cutera-moderna-2020-04-17
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nan
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nan
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Eikon search string for individual stock moves: STXBZ
The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi
The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh
Wall Street bounced on Friday as Boeing said it would resume production of commercial jets, with investors also cheering President Donald Trump's plan to reopen the economy and on hopes of a potential drug by Gilead Sciences to treat COVID-19..N
At 17:40 ET, the Dow Jones Industrial Average .DJI was up 1.79% at 23,959.49. The S&P 500 .SPX was up 1.48% at 2,841.12 and the Nasdaq Composite .IXIC was up 0.64% at 8,586.7. The top three S&P 500 .PG.INX percentage gainers: ** TransDigm Group Corp , up 13.7% ** HollyFrontier Corp , up 13.5% ** Citizens Financial Group Inc , up 13.3% The top three S&P 500 .PL.INX percentage losers: ** Netflix Inc , down 4.1% ** Electronic Arts Inc , down 3.7% ** Activision Blizzard Inc , down 3% The top three NYSE .PG.N percentage gainers: ** Wideopenwest Inc , up 34.2% ** Silvergate Capital Corp, up 34% ** AMC Entertainment Holdings , up 28.5% The top three NYSE .PL.N percentage losers: ** VelocityShares 3x Inverse Natural Gas , down 15.3% ** Direxion Daily S&P Oil & Gas , down 15.1% ** Casper Sleep Inc , down 14.1% The top three Nasdaq .PG.O percentage gainers: ** Golden Bull Ltd , up 49.2% ** Genetic Technologies Ltd , up 41.4% ** Surgery Partners Inc , up 33.2% The top three Nasdaq .PL.O percentage losers: ** Cutera Inc , down 20.1%- ** Liberty TripAdvisor Holdings , down 18.6% ** RedHill Biopharma Ltd , down 14.6%
** Netflix Inc NFLX.O: down 4.1%
BUZZ-Netflix loses ground, analyst starts with sell rating ** MGM Resorts International MGM.N: up 2.6% ** Wynn Resorts Ltd WYNN.O: up 6.6% ** Las Vegas Sands Corp LVS.N: up 4.7% ** Melco Resorts & Entertainment Ltd MLCO.O: up 4.3% ** Carnival Corp CCL.N: up 5.8% ** Royal Caribbean Cruises Ltd RCL.N: up 8.8% ** Norwegian Cruise Line Holdings NCLH.N: up 8.5% ** American Airlines Group Inc AAL.O: up 5.4% ** Delta Air Lines Inc DAL.N: up 6.0% ** United Airlines Holdings Inc UAL.O: up 4.1%
** Hilton Worldwide Holdings Inc HLT.N: up 6.7% ** Marriott International Inc MAR.O: up 4.7% ** Hyatt Hotels Corp H.N: up 4.5%
BUZZ-U.S. casino, travel stocks jump on hopes of COVID-19 treatment BUZZ-Las Vegas Sands Corp says Asia expansion on track, shares rise ** Moderna Inc MRNA.O: up 17.6%
BUZZ-Street View: U.S. BARDA award puts spotlight on Moderna's coronavirus vaccine BUZZ-Moderna: Jumps on $483 mln award to accelerate COVID-19 vaccine development ** Planet Fitness Inc PLNT.N: up 11.0%
BUZZ-Planet Fitness jumps on Trump's plan to end shutdown; Peloton backpedals ** AMC Entertainment Holdings AMC.N: up 28.5% ** IMAX Corp IMAX.N: up 6.4% ** Cinemark Holdings Inc CNK.N: up 15.5%
BUZZ-Cinemas: Set for blockbuster day on Trump's plan to end shutdown ** Cree Inc CREE.O: down 0.3%
BUZZ-Cree flat after $500 mln liquidity boost, JP Morgan PT hike ** Kansas City Southern KSU.N: up 2.8%
BUZZ-Kansas City Southern rises as higher Mexico shipments drive Q1 beat ** Corteva Inc CTVA.N: up 0.6%
BUZZ-Corteva: BofA cuts to "neutral" on long-term concerns ** Prudential Financial Inc PRU.N: up 6.2% ** MetLife Inc MET.N: up 5.7% ** American International Group AIG.N: up 4.0% ** Travelers Companies Inc TRV.N: up 3.5%
BUZZ-U.S. insurers rise as broader market gains ** Biohaven Pharmaceutical Holding Co BHVN.N: up 10.0% BUZZ-Biohaven Pharma: Rises as Cowen starts with "outperform" on migraine drug's potential ** Schlumberger NV SLB.N: up 6.5% BUZZ-Schlumberger: Rises as Q1 profit scrapes past expectations ** Regeneron Pharmaceuticals Inc REGN.O: up 4.5% BUZZ-Regeneron Pharma: BMO hikes PT as eye drug appears safer than rival ** Twin River Worldwide Holdings TRWH.N: up 1.1% Caesars Entertainment Corp CZR.O: up 3.8% BUZZ-SunTrust upgrades casino operators Twin River and Caesars to "buy" ** The Stars Group TSG.O: up 17.4% BUZZ-The Stars Group jumps on upbeat Q1 revenue forecast ** Goldman Sachs Group Inc GS.N: up 1.1%
** JPMorgan Chase & Co JPM.N: up 6.6%
** Citigroup Inc C.N: up 8.7%
** Wells Fargo & Co WFC.N: up 4.7%
** Bank of America Corp BAC.N: up 6.6%
** Morgan Stanley MS.N: up 0.2% BUZZ-U.S. big banks rise amid broad-market gains, higher Treasury yields
BUZZ-Street View: Morgan Stanley's online platforms stable, but near-term outlook muted ** Spirit AeroSystems SPR.N: up 14.5% BUZZ-Spirit AeroSystems: Lifts off on Boeing's plan to restart production ** Kohls Corp KSS.N: up 6.4% BUZZ-Kohls Corp: Shares rise; lands new $1.5 bln credit line ** EPR Properties EPR.N: up 12.3% BUZZ-EPR Properties: Brokerages cut PT on concerns of rent deferment ** Pulmatrix Inc PULM.O: down 27.4% BUZZ-Pulmatrix Inc: Tumbles on direct stock-and-warrants offering ** Cutera Inc CUTR.O: down 20.1% BUZZ-Cutera drops on deep-discounted stock deal ** Edwards Lifesciences EW.N: up 4.6% BUZZ-Edwards Lifesciences: SVB upgrades on likely sharper post-COVID recovery ** Gilead Sciences GILD.O: up 9.0% BUZZ-Street View: Report on Gilead's coronavirus drug adds confusion, not confidence ** Apple Inc AAPL.O: down 2.1% BUZZ-Apple Inc: Goldman Sachs downgrades to "sell" on coronavirus fears
** Abbott Laboratories ABT.N: flat BUZZ-Street View: Abbott shows strength across businesses amid coronavirus storm ** Procter & Gamble PG.N: up 1.3% BUZZ-Procter & Gamble: Rises on profit beat as consumers stock up essentials ** BlackRock Inc BLK.N: up 4.1% BUZZ-Street View: BlackRock will brace the turmoil like a rock
The 11 major S&P 500 sectors:
Communication Services
.SPLRCL
up 0.86%
Consumer Discretionary
.SPLRCD
up 1.05%
Consumer Staples
.SPLRCS
up 0.60%
Energy
.SPNY
up 8.06%
Financial
.SPSY
up 4.15%
Health
.SPXHC
up 1.26%
Industrial
.SPLRCI
up 3.65%
Information Technology
.SPLRCT
up 0.38%
Materials
.SPLRCM
up 3.24%
Real Estate
.SPLRCR
up 2.36%
Utilities
.SPLRCU
up 2.19%
(Compiled by Amal S in Bengaluru)
((Amal.S@thomsonreuters.com; within U.S.+1 646 223 8780; outside U.S. +91 80 6749 3677;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The top three S&P 500 .PG.INX percentage gainers: ** TransDigm Group Corp , up 13.7% ** HollyFrontier Corp , up 13.5% ** Citizens Financial Group Inc , up 13.3% The top three S&P 500 .PL.INX percentage losers: ** Netflix Inc , down 4.1% ** Electronic Arts Inc , down 3.7% ** Activision Blizzard Inc , down 3% The top three NYSE .PG.N percentage gainers: ** Wideopenwest Inc , up 34.2% ** Silvergate Capital Corp, up 34% ** AMC Entertainment Holdings , up 28.5% The top three NYSE .PL.N percentage losers: ** VelocityShares 3x Inverse Natural Gas , down 15.3% ** Direxion Daily S&P Oil & Gas , down 15.1% ** Casper Sleep Inc , down 14.1% The top three Nasdaq .PG.O percentage gainers: ** Golden Bull Ltd , up 49.2% ** Genetic Technologies Ltd , up 41.4% ** Surgery Partners Inc , up 33.2% The top three Nasdaq .PL.O percentage losers: ** Cutera Inc , down 20.1%- ** Liberty TripAdvisor Holdings , down 18.6% ** RedHill Biopharma Ltd , down 14.6% ** Netflix Inc NFLX.O: down 4.1% BUZZ-Netflix loses ground, analyst starts with sell rating ** MGM Resorts International MGM.N: up 2.6% ** Wynn Resorts Ltd WYNN.O: up 6.6% ** Las Vegas Sands Corp LVS.N: up 4.7% ** Melco Resorts & Entertainment Ltd MLCO.O: up 4.3% ** Carnival Corp CCL.N: up 5.8% ** Royal Caribbean Cruises Ltd RCL.N: up 8.8% ** Norwegian Cruise Line Holdings NCLH.N: up 8.5% ** American Airlines Group Inc AAL.O: up 5.4% ** Delta Air Lines Inc DAL.N: up 6.0% ** United Airlines Holdings Inc UAL.O: up 4.1% ** Hilton Worldwide Holdings Inc HLT.N: up 6.7% ** Marriott International Inc MAR.O: up 4.7% ** Hyatt Hotels Corp H.N: up 4.5% BUZZ-U.S. casino, travel stocks jump on hopes of COVID-19 treatment BUZZ-Las Vegas Sands Corp says Asia expansion on track, shares rise ** Moderna Inc MRNA.O: up 17.6% BUZZ-Street View: U.S. BARDA award puts spotlight on Moderna's coronavirus vaccine BUZZ-Moderna: Jumps on $483 mln award to accelerate COVID-19 vaccine development ** Planet Fitness Inc PLNT.N: up 11.0% BUZZ-Planet Fitness jumps on Trump's plan to end shutdown; Peloton backpedals ** AMC Entertainment Holdings AMC.N: up 28.5% ** IMAX Corp IMAX.N: up 6.4% ** Cinemark Holdings Inc CNK.N: up 15.5% BUZZ-Cinemas: Set for blockbuster day on Trump's plan to end shutdown ** Cree Inc CREE.O: down 0.3% BUZZ-Cree flat after $500 mln liquidity boost, JP Morgan PT hike ** Kansas City Southern KSU.N: up 2.8% BUZZ-Kansas City Southern rises as higher Mexico shipments drive Q1 beat ** Corteva Inc CTVA.N: up 0.6% BUZZ-Corteva: BofA cuts to "neutral" on long-term concerns ** Prudential Financial Inc PRU.N: up 6.2% ** MetLife Inc MET.N: up 5.7% ** American International Group AIG.N: up 4.0% ** Travelers Companies Inc TRV.N: up 3.5% BUZZ-U.S. insurers rise as broader market gains ** Biohaven Pharmaceutical Holding Co BHVN.N: up 10.0% BUZZ-Biohaven Pharma: Rises as Cowen starts with "outperform" on migraine drug's potential ** Schlumberger NV SLB.N: up 6.5% BUZZ-Schlumberger: Rises as Q1 profit scrapes past expectations ** Regeneron Pharmaceuticals Inc REGN.O: up 4.5% BUZZ-Regeneron Pharma: BMO hikes PT as eye drug appears safer than rival ** Twin River Worldwide Holdings TRWH.N: up 1.1% Caesars Entertainment Corp CZR.O: up 3.8% BUZZ-SunTrust upgrades casino operators Twin River and Caesars to "buy" ** The Stars Group TSG.O: up 17.4% BUZZ-The Stars Group jumps on upbeat Q1 revenue forecast ** Goldman Sachs Group Inc GS.N: up 1.1% ** JPMorgan Chase & Co JPM.N: up 6.6% ** Citigroup Inc C.N: up 8.7% ** Wells Fargo & Co WFC.N: up 4.7% ** Bank of America Corp BAC.N: up 6.6% ** Morgan Stanley MS.N: up 0.2% BUZZ-U.S. big banks rise amid broad-market gains, higher Treasury yields BUZZ-Street View: Morgan Stanley's online platforms stable, but near-term outlook muted ** Spirit AeroSystems SPR.N: up 14.5% BUZZ-Spirit AeroSystems: Lifts off on Boeing's plan to restart production ** Kohls Corp KSS.N: up 6.4% BUZZ-Kohls Corp: Shares rise; lands new $1.5 bln credit line ** EPR Properties EPR.N: up 12.3% BUZZ-EPR Properties: Brokerages cut PT on concerns of rent deferment ** Pulmatrix Inc PULM.O: down 27.4% BUZZ-Pulmatrix Inc: Tumbles on direct stock-and-warrants offering ** Cutera Inc CUTR.O: down 20.1% BUZZ-Cutera drops on deep-discounted stock deal ** Edwards Lifesciences EW.N: up 4.6% BUZZ-Edwards Lifesciences: SVB upgrades on likely sharper post-COVID recovery ** Gilead Sciences GILD.O: up 9.0% BUZZ-Street View: Report on Gilead's coronavirus drug adds confusion, not confidence ** Apple Inc AAPL.O: down 2.1% BUZZ-Apple Inc: Goldman Sachs downgrades to "sell" on coronavirus fears ** Abbott Laboratories ABT.N: flat BUZZ-Street View: Abbott shows strength across businesses amid coronavirus storm ** Procter & Gamble PG.N: up 1.3% BUZZ-Procter & Gamble: Rises on profit beat as consumers stock up essentials ** BlackRock Inc BLK.N: up 4.1% BUZZ-Street View: BlackRock will brace the turmoil like a rock The 11 major S&P 500 sectors: Communication Services Eikon search string for individual stock moves: STXBZ The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh Wall Street bounced on Friday as Boeing said it would resume production of commercial jets, with investors also cheering President Donald Trump's plan to reopen the economy and on hopes of a potential drug by Gilead Sciences to treat COVID-19..N At 17:40 ET, the Dow Jones Industrial Average .DJI was up 1.79% at 23,959.49. up 2.19% (Compiled by Amal S in Bengaluru) ((Amal.S@thomsonreuters.com; within U.S.+1 646 223 8780; outside U.S. +91 80 6749 3677;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The top three S&P 500 .PG.INX percentage gainers: ** TransDigm Group Corp , up 13.7% ** HollyFrontier Corp , up 13.5% ** Citizens Financial Group Inc , up 13.3% The top three S&P 500 .PL.INX percentage losers: ** Netflix Inc , down 4.1% ** Electronic Arts Inc , down 3.7% ** Activision Blizzard Inc , down 3% The top three NYSE .PG.N percentage gainers: ** Wideopenwest Inc , up 34.2% ** Silvergate Capital Corp, up 34% ** AMC Entertainment Holdings , up 28.5% The top three NYSE .PL.N percentage losers: ** VelocityShares 3x Inverse Natural Gas , down 15.3% ** Direxion Daily S&P Oil & Gas , down 15.1% ** Casper Sleep Inc , down 14.1% The top three Nasdaq .PG.O percentage gainers: ** Golden Bull Ltd , up 49.2% ** Genetic Technologies Ltd , up 41.4% ** Surgery Partners Inc , up 33.2% The top three Nasdaq .PL.O percentage losers: ** Cutera Inc , down 20.1%- ** Liberty TripAdvisor Holdings , down 18.6% ** RedHill Biopharma Ltd , down 14.6% ** Netflix Inc NFLX.O: down 4.1% BUZZ-Netflix loses ground, analyst starts with sell rating ** MGM Resorts International MGM.N: up 2.6% ** Wynn Resorts Ltd WYNN.O: up 6.6% ** Las Vegas Sands Corp LVS.N: up 4.7% ** Melco Resorts & Entertainment Ltd MLCO.O: up 4.3% ** Carnival Corp CCL.N: up 5.8% ** Royal Caribbean Cruises Ltd RCL.N: up 8.8% ** Norwegian Cruise Line Holdings NCLH.N: up 8.5% ** American Airlines Group Inc AAL.O: up 5.4% ** Delta Air Lines Inc DAL.N: up 6.0% ** United Airlines Holdings Inc UAL.O: up 4.1% ** Hilton Worldwide Holdings Inc HLT.N: up 6.7% ** Marriott International Inc MAR.O: up 4.7% ** Hyatt Hotels Corp H.N: up 4.5% BUZZ-U.S. casino, travel stocks jump on hopes of COVID-19 treatment BUZZ-Las Vegas Sands Corp says Asia expansion on track, shares rise ** Moderna Inc MRNA.O: up 17.6% BUZZ-Street View: U.S. BARDA award puts spotlight on Moderna's coronavirus vaccine BUZZ-Moderna: Jumps on $483 mln award to accelerate COVID-19 vaccine development ** Planet Fitness Inc PLNT.N: up 11.0% BUZZ-Planet Fitness jumps on Trump's plan to end shutdown; Peloton backpedals ** AMC Entertainment Holdings AMC.N: up 28.5% ** IMAX Corp IMAX.N: up 6.4% ** Cinemark Holdings Inc CNK.N: up 15.5% BUZZ-Cinemas: Set for blockbuster day on Trump's plan to end shutdown ** Cree Inc CREE.O: down 0.3% BUZZ-Cree flat after $500 mln liquidity boost, JP Morgan PT hike ** Kansas City Southern KSU.N: up 2.8% BUZZ-Kansas City Southern rises as higher Mexico shipments drive Q1 beat ** Corteva Inc CTVA.N: up 0.6% BUZZ-Corteva: BofA cuts to "neutral" on long-term concerns ** Prudential Financial Inc PRU.N: up 6.2% ** MetLife Inc MET.N: up 5.7% ** American International Group AIG.N: up 4.0% ** Travelers Companies Inc TRV.N: up 3.5% BUZZ-U.S. insurers rise as broader market gains ** Biohaven Pharmaceutical Holding Co BHVN.N: up 10.0% BUZZ-Biohaven Pharma: Rises as Cowen starts with "outperform" on migraine drug's potential ** Schlumberger NV SLB.N: up 6.5% BUZZ-Schlumberger: Rises as Q1 profit scrapes past expectations ** Regeneron Pharmaceuticals Inc REGN.O: up 4.5% BUZZ-Regeneron Pharma: BMO hikes PT as eye drug appears safer than rival ** Twin River Worldwide Holdings TRWH.N: up 1.1% Caesars Entertainment Corp CZR.O: up 3.8% BUZZ-SunTrust upgrades casino operators Twin River and Caesars to "buy" ** The Stars Group TSG.O: up 17.4% BUZZ-The Stars Group jumps on upbeat Q1 revenue forecast ** Goldman Sachs Group Inc GS.N: up 1.1% ** JPMorgan Chase & Co JPM.N: up 6.6% ** Citigroup Inc C.N: up 8.7% ** Wells Fargo & Co WFC.N: up 4.7% ** Bank of America Corp BAC.N: up 6.6% ** Morgan Stanley MS.N: up 0.2% BUZZ-U.S. big banks rise amid broad-market gains, higher Treasury yields BUZZ-Street View: Morgan Stanley's online platforms stable, but near-term outlook muted ** Spirit AeroSystems SPR.N: up 14.5% BUZZ-Spirit AeroSystems: Lifts off on Boeing's plan to restart production ** Kohls Corp KSS.N: up 6.4% BUZZ-Kohls Corp: Shares rise; lands new $1.5 bln credit line ** EPR Properties EPR.N: up 12.3% BUZZ-EPR Properties: Brokerages cut PT on concerns of rent deferment ** Pulmatrix Inc PULM.O: down 27.4% BUZZ-Pulmatrix Inc: Tumbles on direct stock-and-warrants offering ** Cutera Inc CUTR.O: down 20.1% BUZZ-Cutera drops on deep-discounted stock deal ** Edwards Lifesciences EW.N: up 4.6% BUZZ-Edwards Lifesciences: SVB upgrades on likely sharper post-COVID recovery ** Gilead Sciences GILD.O: up 9.0% BUZZ-Street View: Report on Gilead's coronavirus drug adds confusion, not confidence ** Apple Inc AAPL.O: down 2.1% BUZZ-Apple Inc: Goldman Sachs downgrades to "sell" on coronavirus fears ** Abbott Laboratories ABT.N: flat BUZZ-Street View: Abbott shows strength across businesses amid coronavirus storm ** Procter & Gamble PG.N: up 1.3% BUZZ-Procter & Gamble: Rises on profit beat as consumers stock up essentials ** BlackRock Inc BLK.N: up 4.1% BUZZ-Street View: BlackRock will brace the turmoil like a rock The 11 major S&P 500 sectors: Communication Services Eikon search string for individual stock moves: STXBZ The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh Wall Street bounced on Friday as Boeing said it would resume production of commercial jets, with investors also cheering President Donald Trump's plan to reopen the economy and on hopes of a potential drug by Gilead Sciences to treat COVID-19..N At 17:40 ET, the Dow Jones Industrial Average .DJI was up 1.79% at 23,959.49. up 2.19% (Compiled by Amal S in Bengaluru) ((Amal.S@thomsonreuters.com; within U.S.+1 646 223 8780; outside U.S. +91 80 6749 3677;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The top three S&P 500 .PG.INX percentage gainers: ** TransDigm Group Corp , up 13.7% ** HollyFrontier Corp , up 13.5% ** Citizens Financial Group Inc , up 13.3% The top three S&P 500 .PL.INX percentage losers: ** Netflix Inc , down 4.1% ** Electronic Arts Inc , down 3.7% ** Activision Blizzard Inc , down 3% The top three NYSE .PG.N percentage gainers: ** Wideopenwest Inc , up 34.2% ** Silvergate Capital Corp, up 34% ** AMC Entertainment Holdings , up 28.5% The top three NYSE .PL.N percentage losers: ** VelocityShares 3x Inverse Natural Gas , down 15.3% ** Direxion Daily S&P Oil & Gas , down 15.1% ** Casper Sleep Inc , down 14.1% The top three Nasdaq .PG.O percentage gainers: ** Golden Bull Ltd , up 49.2% ** Genetic Technologies Ltd , up 41.4% ** Surgery Partners Inc , up 33.2% The top three Nasdaq .PL.O percentage losers: ** Cutera Inc , down 20.1%- ** Liberty TripAdvisor Holdings , down 18.6% ** RedHill Biopharma Ltd , down 14.6% ** Netflix Inc NFLX.O: down 4.1% BUZZ-Netflix loses ground, analyst starts with sell rating ** MGM Resorts International MGM.N: up 2.6% ** Wynn Resorts Ltd WYNN.O: up 6.6% ** Las Vegas Sands Corp LVS.N: up 4.7% ** Melco Resorts & Entertainment Ltd MLCO.O: up 4.3% ** Carnival Corp CCL.N: up 5.8% ** Royal Caribbean Cruises Ltd RCL.N: up 8.8% ** Norwegian Cruise Line Holdings NCLH.N: up 8.5% ** American Airlines Group Inc AAL.O: up 5.4% ** Delta Air Lines Inc DAL.N: up 6.0% ** United Airlines Holdings Inc UAL.O: up 4.1% ** Hilton Worldwide Holdings Inc HLT.N: up 6.7% ** Marriott International Inc MAR.O: up 4.7% ** Hyatt Hotels Corp H.N: up 4.5% BUZZ-U.S. casino, travel stocks jump on hopes of COVID-19 treatment BUZZ-Las Vegas Sands Corp says Asia expansion on track, shares rise ** Moderna Inc MRNA.O: up 17.6% BUZZ-Street View: U.S. BARDA award puts spotlight on Moderna's coronavirus vaccine BUZZ-Moderna: Jumps on $483 mln award to accelerate COVID-19 vaccine development ** Planet Fitness Inc PLNT.N: up 11.0% BUZZ-Planet Fitness jumps on Trump's plan to end shutdown; Peloton backpedals ** AMC Entertainment Holdings AMC.N: up 28.5% ** IMAX Corp IMAX.N: up 6.4% ** Cinemark Holdings Inc CNK.N: up 15.5% BUZZ-Cinemas: Set for blockbuster day on Trump's plan to end shutdown ** Cree Inc CREE.O: down 0.3% BUZZ-Cree flat after $500 mln liquidity boost, JP Morgan PT hike ** Kansas City Southern KSU.N: up 2.8% BUZZ-Kansas City Southern rises as higher Mexico shipments drive Q1 beat ** Corteva Inc CTVA.N: up 0.6% BUZZ-Corteva: BofA cuts to "neutral" on long-term concerns ** Prudential Financial Inc PRU.N: up 6.2% ** MetLife Inc MET.N: up 5.7% ** American International Group AIG.N: up 4.0% ** Travelers Companies Inc TRV.N: up 3.5% BUZZ-U.S. insurers rise as broader market gains ** Biohaven Pharmaceutical Holding Co BHVN.N: up 10.0% BUZZ-Biohaven Pharma: Rises as Cowen starts with "outperform" on migraine drug's potential ** Schlumberger NV SLB.N: up 6.5% BUZZ-Schlumberger: Rises as Q1 profit scrapes past expectations ** Regeneron Pharmaceuticals Inc REGN.O: up 4.5% BUZZ-Regeneron Pharma: BMO hikes PT as eye drug appears safer than rival ** Twin River Worldwide Holdings TRWH.N: up 1.1% Caesars Entertainment Corp CZR.O: up 3.8% BUZZ-SunTrust upgrades casino operators Twin River and Caesars to "buy" ** The Stars Group TSG.O: up 17.4% BUZZ-The Stars Group jumps on upbeat Q1 revenue forecast ** Goldman Sachs Group Inc GS.N: up 1.1% ** JPMorgan Chase & Co JPM.N: up 6.6% ** Citigroup Inc C.N: up 8.7% ** Wells Fargo & Co WFC.N: up 4.7% ** Bank of America Corp BAC.N: up 6.6% ** Morgan Stanley MS.N: up 0.2% BUZZ-U.S. big banks rise amid broad-market gains, higher Treasury yields BUZZ-Street View: Morgan Stanley's online platforms stable, but near-term outlook muted ** Spirit AeroSystems SPR.N: up 14.5% BUZZ-Spirit AeroSystems: Lifts off on Boeing's plan to restart production ** Kohls Corp KSS.N: up 6.4% BUZZ-Kohls Corp: Shares rise; lands new $1.5 bln credit line ** EPR Properties EPR.N: up 12.3% BUZZ-EPR Properties: Brokerages cut PT on concerns of rent deferment ** Pulmatrix Inc PULM.O: down 27.4% BUZZ-Pulmatrix Inc: Tumbles on direct stock-and-warrants offering ** Cutera Inc CUTR.O: down 20.1% BUZZ-Cutera drops on deep-discounted stock deal ** Edwards Lifesciences EW.N: up 4.6% BUZZ-Edwards Lifesciences: SVB upgrades on likely sharper post-COVID recovery ** Gilead Sciences GILD.O: up 9.0% BUZZ-Street View: Report on Gilead's coronavirus drug adds confusion, not confidence ** Apple Inc AAPL.O: down 2.1% BUZZ-Apple Inc: Goldman Sachs downgrades to "sell" on coronavirus fears ** Abbott Laboratories ABT.N: flat BUZZ-Street View: Abbott shows strength across businesses amid coronavirus storm ** Procter & Gamble PG.N: up 1.3% BUZZ-Procter & Gamble: Rises on profit beat as consumers stock up essentials ** BlackRock Inc BLK.N: up 4.1% BUZZ-Street View: BlackRock will brace the turmoil like a rock The 11 major S&P 500 sectors: Communication Services up 0.60% Energy up 3.24% Real Estate
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The top three S&P 500 .PG.INX percentage gainers: ** TransDigm Group Corp , up 13.7% ** HollyFrontier Corp , up 13.5% ** Citizens Financial Group Inc , up 13.3% The top three S&P 500 .PL.INX percentage losers: ** Netflix Inc , down 4.1% ** Electronic Arts Inc , down 3.7% ** Activision Blizzard Inc , down 3% The top three NYSE .PG.N percentage gainers: ** Wideopenwest Inc , up 34.2% ** Silvergate Capital Corp, up 34% ** AMC Entertainment Holdings , up 28.5% The top three NYSE .PL.N percentage losers: ** VelocityShares 3x Inverse Natural Gas , down 15.3% ** Direxion Daily S&P Oil & Gas , down 15.1% ** Casper Sleep Inc , down 14.1% The top three Nasdaq .PG.O percentage gainers: ** Golden Bull Ltd , up 49.2% ** Genetic Technologies Ltd , up 41.4% ** Surgery Partners Inc , up 33.2% The top three Nasdaq .PL.O percentage losers: ** Cutera Inc , down 20.1%- ** Liberty TripAdvisor Holdings , down 18.6% ** RedHill Biopharma Ltd , down 14.6% ** Netflix Inc NFLX.O: down 4.1% BUZZ-Netflix loses ground, analyst starts with sell rating ** MGM Resorts International MGM.N: up 2.6% ** Wynn Resorts Ltd WYNN.O: up 6.6% ** Las Vegas Sands Corp LVS.N: up 4.7% ** Melco Resorts & Entertainment Ltd MLCO.O: up 4.3% ** Carnival Corp CCL.N: up 5.8% ** Royal Caribbean Cruises Ltd RCL.N: up 8.8% ** Norwegian Cruise Line Holdings NCLH.N: up 8.5% ** American Airlines Group Inc AAL.O: up 5.4% ** Delta Air Lines Inc DAL.N: up 6.0% ** United Airlines Holdings Inc UAL.O: up 4.1% ** Hilton Worldwide Holdings Inc HLT.N: up 6.7% ** Marriott International Inc MAR.O: up 4.7% ** Hyatt Hotels Corp H.N: up 4.5% BUZZ-U.S. casino, travel stocks jump on hopes of COVID-19 treatment BUZZ-Las Vegas Sands Corp says Asia expansion on track, shares rise ** Moderna Inc MRNA.O: up 17.6% BUZZ-Street View: U.S. BARDA award puts spotlight on Moderna's coronavirus vaccine BUZZ-Moderna: Jumps on $483 mln award to accelerate COVID-19 vaccine development ** Planet Fitness Inc PLNT.N: up 11.0% BUZZ-Planet Fitness jumps on Trump's plan to end shutdown; Peloton backpedals ** AMC Entertainment Holdings AMC.N: up 28.5% ** IMAX Corp IMAX.N: up 6.4% ** Cinemark Holdings Inc CNK.N: up 15.5% BUZZ-Cinemas: Set for blockbuster day on Trump's plan to end shutdown ** Cree Inc CREE.O: down 0.3% BUZZ-Cree flat after $500 mln liquidity boost, JP Morgan PT hike ** Kansas City Southern KSU.N: up 2.8% BUZZ-Kansas City Southern rises as higher Mexico shipments drive Q1 beat ** Corteva Inc CTVA.N: up 0.6% BUZZ-Corteva: BofA cuts to "neutral" on long-term concerns ** Prudential Financial Inc PRU.N: up 6.2% ** MetLife Inc MET.N: up 5.7% ** American International Group AIG.N: up 4.0% ** Travelers Companies Inc TRV.N: up 3.5% BUZZ-U.S. insurers rise as broader market gains ** Biohaven Pharmaceutical Holding Co BHVN.N: up 10.0% BUZZ-Biohaven Pharma: Rises as Cowen starts with "outperform" on migraine drug's potential ** Schlumberger NV SLB.N: up 6.5% BUZZ-Schlumberger: Rises as Q1 profit scrapes past expectations ** Regeneron Pharmaceuticals Inc REGN.O: up 4.5% BUZZ-Regeneron Pharma: BMO hikes PT as eye drug appears safer than rival ** Twin River Worldwide Holdings TRWH.N: up 1.1% Caesars Entertainment Corp CZR.O: up 3.8% BUZZ-SunTrust upgrades casino operators Twin River and Caesars to "buy" ** The Stars Group TSG.O: up 17.4% BUZZ-The Stars Group jumps on upbeat Q1 revenue forecast ** Goldman Sachs Group Inc GS.N: up 1.1% ** JPMorgan Chase & Co JPM.N: up 6.6% ** Citigroup Inc C.N: up 8.7% ** Wells Fargo & Co WFC.N: up 4.7% ** Bank of America Corp BAC.N: up 6.6% ** Morgan Stanley MS.N: up 0.2% BUZZ-U.S. big banks rise amid broad-market gains, higher Treasury yields BUZZ-Street View: Morgan Stanley's online platforms stable, but near-term outlook muted ** Spirit AeroSystems SPR.N: up 14.5% BUZZ-Spirit AeroSystems: Lifts off on Boeing's plan to restart production ** Kohls Corp KSS.N: up 6.4% BUZZ-Kohls Corp: Shares rise; lands new $1.5 bln credit line ** EPR Properties EPR.N: up 12.3% BUZZ-EPR Properties: Brokerages cut PT on concerns of rent deferment ** Pulmatrix Inc PULM.O: down 27.4% BUZZ-Pulmatrix Inc: Tumbles on direct stock-and-warrants offering ** Cutera Inc CUTR.O: down 20.1% BUZZ-Cutera drops on deep-discounted stock deal ** Edwards Lifesciences EW.N: up 4.6% BUZZ-Edwards Lifesciences: SVB upgrades on likely sharper post-COVID recovery ** Gilead Sciences GILD.O: up 9.0% BUZZ-Street View: Report on Gilead's coronavirus drug adds confusion, not confidence ** Apple Inc AAPL.O: down 2.1% BUZZ-Apple Inc: Goldman Sachs downgrades to "sell" on coronavirus fears ** Abbott Laboratories ABT.N: flat BUZZ-Street View: Abbott shows strength across businesses amid coronavirus storm ** Procter & Gamble PG.N: up 1.3% BUZZ-Procter & Gamble: Rises on profit beat as consumers stock up essentials ** BlackRock Inc BLK.N: up 4.1% BUZZ-Street View: BlackRock will brace the turmoil like a rock The 11 major S&P 500 sectors: Communication Services Eikon search string for individual stock moves: STXBZ The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh Wall Street bounced on Friday as Boeing said it would resume production of commercial jets, with investors also cheering President Donald Trump's plan to reopen the economy and on hopes of a potential drug by Gilead Sciences to treat COVID-19..N At 17:40 ET, the Dow Jones Industrial Average .DJI was up 1.79% at 23,959.49. The S&P 500 .SPX was up 1.48% at 2,841.12 and the Nasdaq Composite .IXIC was up 0.64% at 8,586.7.
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6040.0
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2020-04-16 00:00:00 UTC
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BUZZ-U.S. STOCKS ON THE MOVE-Roku, Rite Aid, Jack in the Box, ThermoGenesis
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AAL
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https://www.nasdaq.com/articles/buzz-u.s.-stocks-on-the-move-roku-rite-aid-jack-in-the-box-thermogenesis-2020-04-16
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nan
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nan
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Eikon search string for individual stock moves: STXBZ
The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi
The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh
The S&P 500 and Dow Jones slipped on Thursday, giving up early gains as concerns about rough first-quarter earnings and lasting economic damage from the coronavirus pandemic offset weekly jobless claims that were better than some had feared. .N
At 12:56 ET, the Dow Jones Industrial Average .DJI was down 0.97% at 23,277.22. The S&P 500 .SPX was down 0.32% at 2,774.35 and the Nasdaq Composite .IXIC was up 0.46% at 8,431.554. The top three S&P 500 .PG.INX percentage gainers: ** Akamai Technologies AKAM.OQ, up 5.1% ** Anthem Inc ANTM.N, up 5% ** AutoZone Inc AZO.N, up 4.9% The top three S&P 500 .PL.INX percentage losers: ** United Airlines Holdings UAL.OQ, down 11.8% ** American Airlines GroupAAL.OQ, down 10% ** Simon Property Group SPG.N, down 10% The top three NYSE .PG.N percentage gainers: ** VanEck Vectors Energy Income ETF EINC.N, up 197.2% ** VanEck Vectors Rare Earth ETF REMX.N, up 185.7% ** Arcus Biosciences Inc RCUS.N, up 80.5% The top NYSE .PL.N percentage losers: ** Rite Aid Corp RAD.N, down 22.6% ** Plantronics PLT.N, down 20.8% The top three Nasdaq .PG.O percentage gainers: ** OpGen Equity Warrants OPGNW.O, up 109.7% ** MoSys Inc MOSY.O, up 96.4% ** Edison Nation EDNT.O, up 73.1% The top three Nasdaq .PL.O percentage losers: ** Athersys Inc ATHX.O, down 25.5% ** Global Eagle Entertainment ENT.O, down 24.9% ** Calithera Biosciences Inc CALA.O, down 19.7%
** Netflix NFLX.O: up 3.6% BUZZ-Netflix hits record high as lockdowns, "Tiger King" spur more PT raises
** Outfront Media OUT.N: up 1.5%
BUZZ-Outfront Media jumps on Providence, Ares liquidity infusion
** Sonoco Products SON.N: down 7.1%
BUZZ-Sonoco Products expects hit to Q2 profit due to coronavirus ** BioSig Technologies BSGM.O: down 1.0%
BUZZ-BioSig Technologies rises on plan to test antiviral drug as COVID-19 therapy
** Everi Holdings Inc EVRI.N: down 6.7%
International Game Technology Plc IGT.N: down 0.9%
PlayAGS Inc AGS.N: down 11.9%
Scientific Games Corp SGMS.O: down 2.5%
BUZZ-Gaming equipment makers: Jefferies sees 2020 EBITDA down 26% to 35% ** Roku ROKU.O: up 11.8%
BUZZ-Roku rises after Berenberg says buy
** Cree CREE.O: down 6.8%
BUZZ-Cree drops on $500 mln convertible debt deal ** Hilton Worldwide Holdings HLT.N: down 1.1%
BUZZ-Hilton dips as COVID-19 likely to weigh on brand, Q1 results ** EBay EBAY.O: up 1.8%
BUZZ-EBay: Rises as Starboard withdraws board nominations ** PDS Biotechnology PDSB.O: up 45.3%
BUZZ-PDS jumps on plan to start COVID-19 vaccine development program ** Inovio INO.O: up 6.9%
BUZZ-Inovio rises as coronavirus vaccine study in S.Korea gets $6.9 mln funding ** Rite Aid RAD.N: down 22.6%
BUZZ-Rite Aid: Falls on wider Q4 loss, maintains 2021 outlook ** ConocoPhillips COP.N: down 4.3%
BUZZ-ConocoPhillips: Falls on output cut, share buyback suspension ** Jack in the Box JACK.O: up 16.5%
BUZZ-Jack in the Box jumps after Q2 projections impress Wall Street ** Eagle Pharma EGRX.O: up 5.5%
BUZZ-Eagle Pharma: Rise as hyperthermia drug inhibits virus causing COVID-19 ** Atossa Therapeutics ATOS.O: up 45.1%
BUZZ-Atossa leaps on plans to develop potential COVID-19 therapy ** ThermoGenesis THMO.O: up 39.5%
BUZZ-ThermoGenesis: Gains after FDA allows COVID-19 diagnostic kit distribution ** Co-Diagnostics CODX.O: up 22.1% BUZZ-Co-Diagnostics: Jumps as COVID-19 test on saliva samples uses co's tech ** Calithera Biosciences CALA.O: down 19.7% Calithera slides on equity raise ** Athersys ATHX.O: down 25.5% BUZZ-Athersys drops on $50 mln equity raise to fund COVID-19 trial ** Bed Bath & Beyond BBBY.O: up 17.1% BUZZ-Bed Bath & Beyond: Rises after escaping Q4 with a profit beat amid pandemic ** Arcus Biosciences RCUS.N: up 80.8% BUZZ-Arcus: Surges on report of Gilead in talks for picking stake ** Soligenix Inc SNGX.O: up 11.4% BUZZ-Soligenix: Rises on scoring license for potential COVID-19 vaccine ** Dynavax Tech DVAX.O: up 3.9% BUZZ-Dynavax jumps on entering coronavirus vaccine tie-up ** Twitter TWTR.N: down 4.1% BUZZ-Twitter: Drops as JP Morgan downgrades to 'neutral' ** GoPro GPRO.O: down 3.4% BUZZ-GoPro: Falls after co scraps 2020 forecast on coronavirus fears ** Chegg Inc CHGG.N: down 7.2% BUZZ-Chegg Inc: New grading policy at universities to hurt online learning co ** Bloomin' Brands BLMN.O: up 3.3% BUZZ-Bloomin' Brands: Take-out, delivery sales nearly triple since March ** Bank of New York Mellon BK.N: up 3.7% BUZZ-Bank of New York Mellon rises on Q1 results beat ** Edison Nation EDNT.O: up 73.1% BUZZ-Edison Nation: Surges after securing orders for personal protective equipment ** Abbott Labs ABT.N: up 4.3% BUZZ-Abbott: Rises on quarterly results beat ** Diamond Offshore Drilling DO.N: down 39.0% BUZZ-Diamond Offshore Drilling: Slips after skipping interest payment ** Ra Medical Systems RMED.N: down 13.7% BUZZ-Ra Medical Systems: Falls after filing for stock offering ** Goodyear Tire GT.O: down 6.2% BUZZ-Goodyear Tire: Burns rubber after estimating quarterly loss ** UroGen Pharma URGN.O: up 1.0% BUZZ-UroGen Pharma: Jumps after cancer drug gets FDA nod ** Taiwan Semiconductor Manufacturing Co TSM.N: up 5.8% BUZZ-Taiwan Semiconductor rises as profit nearly doubles ** Pulmatrix PULM.O: up 5.4% BUZZ-Pulmatrix: Jumps after granting license for respiratory disease products ** Marathon Petroleum MPC.N: down 8.2% BUZZ-Marathon Petroleum: Costs, midstream structure keeps Cowen on sidelines ** Square Inc SQ.N: down 6.6% BUZZ-Square Inc: Drops after Raymond James downgrades on COVID-19 risks
The 11 major S&P 500 sectors:
Communication Services
.SPLRCL
down 0.42%
Consumer Discretionary
.SPLRCD
up 1.31%
Consumer Staples
.SPLRCS
up 0.25%
Energy
.SPNY
down 3.98%
Financial
.SPSY
down 2.27%
Health
.SPXHC
up 0.99%
Industrial
.SPLRCI
down 1.92%
Information Technology
.SPLRCT
down 0.08%
Materials
.SPLRCM
down 1.73%
Real Estate
.SPLRCR
down 0.81%
Utilities
.SPLRCU
down 0.12%
(Compiled by Amal S in Bengaluru)
((Amal.S@thomsonreuters.com; within U.S.+1 646 223 8780; outside U.S. +91 80 6749 3677;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The top three S&P 500 .PG.INX percentage gainers: ** Akamai Technologies AKAM.OQ, up 5.1% ** Anthem Inc ANTM.N, up 5% ** AutoZone Inc AZO.N, up 4.9% The top three S&P 500 .PL.INX percentage losers: ** United Airlines Holdings UAL.OQ, down 11.8% ** American Airlines GroupAAL.OQ, down 10% ** Simon Property Group SPG.N, down 10% The top three NYSE .PG.N percentage gainers: ** VanEck Vectors Energy Income ETF EINC.N, up 197.2% ** VanEck Vectors Rare Earth ETF REMX.N, up 185.7% ** Arcus Biosciences Inc RCUS.N, up 80.5% The top NYSE .PL.N percentage losers: ** Rite Aid Corp RAD.N, down 22.6% ** Plantronics PLT.N, down 20.8% The top three Nasdaq .PG.O percentage gainers: ** OpGen Equity Warrants OPGNW.O, up 109.7% ** MoSys Inc MOSY.O, up 96.4% ** Edison Nation EDNT.O, up 73.1% The top three Nasdaq .PL.O percentage losers: ** Athersys Inc ATHX.O, down 25.5% ** Global Eagle Entertainment ENT.O, down 24.9% ** Calithera Biosciences Inc CALA.O, down 19.7% ** Netflix NFLX.O: up 3.6% BUZZ-Netflix hits record high as lockdowns, "Tiger King" spur more PT raises ** Outfront Media OUT.N: up 1.5% BUZZ-Outfront Media jumps on Providence, Ares liquidity infusion ** Sonoco Products SON.N: down 7.1% BUZZ-Sonoco Products expects hit to Q2 profit due to coronavirus ** BioSig Technologies BSGM.O: down 1.0% BUZZ-BioSig Technologies rises on plan to test antiviral drug as COVID-19 therapy ** Everi Holdings Inc EVRI.N: down 6.7% International Game Technology Plc IGT.N: down 0.9% PlayAGS Inc AGS.N: down 11.9% Scientific Games Corp SGMS.O: down 2.5% BUZZ-Gaming equipment makers: Jefferies sees 2020 EBITDA down 26% to 35% ** Roku ROKU.O: up 11.8% BUZZ-Roku rises after Berenberg says buy ** Cree CREE.O: down 6.8% BUZZ-Cree drops on $500 mln convertible debt deal ** Hilton Worldwide Holdings HLT.N: down 1.1% BUZZ-Hilton dips as COVID-19 likely to weigh on brand, Q1 results ** EBay EBAY.O: up 1.8% BUZZ-EBay: Rises as Starboard withdraws board nominations ** PDS Biotechnology PDSB.O: up 45.3% BUZZ-PDS jumps on plan to start COVID-19 vaccine development program ** Inovio INO.O: up 6.9% BUZZ-Inovio rises as coronavirus vaccine study in S.Korea gets $6.9 mln funding ** Rite Aid RAD.N: down 22.6% BUZZ-Rite Aid: Falls on wider Q4 loss, maintains 2021 outlook ** ConocoPhillips COP.N: down 4.3% BUZZ-ConocoPhillips: Falls on output cut, share buyback suspension ** Jack in the Box JACK.O: up 16.5% BUZZ-Jack in the Box jumps after Q2 projections impress Wall Street ** Eagle Pharma EGRX.O: up 5.5% BUZZ-Eagle Pharma: Rise as hyperthermia drug inhibits virus causing COVID-19 ** Atossa Therapeutics ATOS.O: up 45.1% BUZZ-Atossa leaps on plans to develop potential COVID-19 therapy ** ThermoGenesis THMO.O: up 39.5% BUZZ-ThermoGenesis: Gains after FDA allows COVID-19 diagnostic kit distribution ** Co-Diagnostics CODX.O: up 22.1% BUZZ-Co-Diagnostics: Jumps as COVID-19 test on saliva samples uses co's tech ** Calithera Biosciences CALA.O: down 19.7% Calithera slides on equity raise ** Athersys ATHX.O: down 25.5% BUZZ-Athersys drops on $50 mln equity raise to fund COVID-19 trial ** Bed Bath & Beyond BBBY.O: up 17.1% BUZZ-Bed Bath & Beyond: Rises after escaping Q4 with a profit beat amid pandemic ** Arcus Biosciences RCUS.N: up 80.8% BUZZ-Arcus: Surges on report of Gilead in talks for picking stake ** Soligenix Inc SNGX.O: up 11.4% BUZZ-Soligenix: Rises on scoring license for potential COVID-19 vaccine ** Dynavax Tech DVAX.O: up 3.9% BUZZ-Dynavax jumps on entering coronavirus vaccine tie-up ** Twitter TWTR.N: down 4.1% BUZZ-Twitter: Drops as JP Morgan downgrades to 'neutral' ** GoPro GPRO.O: down 3.4% BUZZ-GoPro: Falls after co scraps 2020 forecast on coronavirus fears ** Chegg Inc CHGG.N: down 7.2% BUZZ-Chegg Inc: New grading policy at universities to hurt online learning co ** Bloomin' Brands BLMN.O: up 3.3% BUZZ-Bloomin' Brands: Take-out, delivery sales nearly triple since March ** Bank of New York Mellon BK.N: up 3.7% BUZZ-Bank of New York Mellon rises on Q1 results beat ** Edison Nation EDNT.O: up 73.1% BUZZ-Edison Nation: Surges after securing orders for personal protective equipment ** Abbott Labs ABT.N: up 4.3% BUZZ-Abbott: Rises on quarterly results beat ** Diamond Offshore Drilling DO.N: down 39.0% BUZZ-Diamond Offshore Drilling: Slips after skipping interest payment ** Ra Medical Systems RMED.N: down 13.7% BUZZ-Ra Medical Systems: Falls after filing for stock offering ** Goodyear Tire GT.O: down 6.2% BUZZ-Goodyear Tire: Burns rubber after estimating quarterly loss ** UroGen Pharma URGN.O: up 1.0% BUZZ-UroGen Pharma: Jumps after cancer drug gets FDA nod ** Taiwan Semiconductor Manufacturing Co TSM.N: up 5.8% BUZZ-Taiwan Semiconductor rises as profit nearly doubles ** Pulmatrix PULM.O: up 5.4% BUZZ-Pulmatrix: Jumps after granting license for respiratory disease products ** Marathon Petroleum MPC.N: down 8.2% BUZZ-Marathon Petroleum: Costs, midstream structure keeps Cowen on sidelines ** Square Inc SQ.N: down 6.6% BUZZ-Square Inc: Drops after Raymond James downgrades on COVID-19 risks 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 slipped on Thursday, giving up early gains as concerns about rough first-quarter earnings and lasting economic damage from the coronavirus pandemic offset weekly jobless claims that were better than some had feared. down 0.12% (Compiled by Amal S in Bengaluru) ((Amal.S@thomsonreuters.com; within U.S.+1 646 223 8780; outside U.S. +91 80 6749 3677;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The top three S&P 500 .PG.INX percentage gainers: ** Akamai Technologies AKAM.OQ, up 5.1% ** Anthem Inc ANTM.N, up 5% ** AutoZone Inc AZO.N, up 4.9% The top three S&P 500 .PL.INX percentage losers: ** United Airlines Holdings UAL.OQ, down 11.8% ** American Airlines GroupAAL.OQ, down 10% ** Simon Property Group SPG.N, down 10% The top three NYSE .PG.N percentage gainers: ** VanEck Vectors Energy Income ETF EINC.N, up 197.2% ** VanEck Vectors Rare Earth ETF REMX.N, up 185.7% ** Arcus Biosciences Inc RCUS.N, up 80.5% The top NYSE .PL.N percentage losers: ** Rite Aid Corp RAD.N, down 22.6% ** Plantronics PLT.N, down 20.8% The top three Nasdaq .PG.O percentage gainers: ** OpGen Equity Warrants OPGNW.O, up 109.7% ** MoSys Inc MOSY.O, up 96.4% ** Edison Nation EDNT.O, up 73.1% The top three Nasdaq .PL.O percentage losers: ** Athersys Inc ATHX.O, down 25.5% ** Global Eagle Entertainment ENT.O, down 24.9% ** Calithera Biosciences Inc CALA.O, down 19.7% ** Netflix NFLX.O: up 3.6% BUZZ-Netflix hits record high as lockdowns, "Tiger King" spur more PT raises ** Outfront Media OUT.N: up 1.5% BUZZ-Outfront Media jumps on Providence, Ares liquidity infusion ** Sonoco Products SON.N: down 7.1% BUZZ-Sonoco Products expects hit to Q2 profit due to coronavirus ** BioSig Technologies BSGM.O: down 1.0% BUZZ-BioSig Technologies rises on plan to test antiviral drug as COVID-19 therapy ** Everi Holdings Inc EVRI.N: down 6.7% International Game Technology Plc IGT.N: down 0.9% PlayAGS Inc AGS.N: down 11.9% Scientific Games Corp SGMS.O: down 2.5% BUZZ-Gaming equipment makers: Jefferies sees 2020 EBITDA down 26% to 35% ** Roku ROKU.O: up 11.8% BUZZ-Roku rises after Berenberg says buy ** Cree CREE.O: down 6.8% BUZZ-Cree drops on $500 mln convertible debt deal ** Hilton Worldwide Holdings HLT.N: down 1.1% BUZZ-Hilton dips as COVID-19 likely to weigh on brand, Q1 results ** EBay EBAY.O: up 1.8% BUZZ-EBay: Rises as Starboard withdraws board nominations ** PDS Biotechnology PDSB.O: up 45.3% BUZZ-PDS jumps on plan to start COVID-19 vaccine development program ** Inovio INO.O: up 6.9% BUZZ-Inovio rises as coronavirus vaccine study in S.Korea gets $6.9 mln funding ** Rite Aid RAD.N: down 22.6% BUZZ-Rite Aid: Falls on wider Q4 loss, maintains 2021 outlook ** ConocoPhillips COP.N: down 4.3% BUZZ-ConocoPhillips: Falls on output cut, share buyback suspension ** Jack in the Box JACK.O: up 16.5% BUZZ-Jack in the Box jumps after Q2 projections impress Wall Street ** Eagle Pharma EGRX.O: up 5.5% BUZZ-Eagle Pharma: Rise as hyperthermia drug inhibits virus causing COVID-19 ** Atossa Therapeutics ATOS.O: up 45.1% BUZZ-Atossa leaps on plans to develop potential COVID-19 therapy ** ThermoGenesis THMO.O: up 39.5% BUZZ-ThermoGenesis: Gains after FDA allows COVID-19 diagnostic kit distribution ** Co-Diagnostics CODX.O: up 22.1% BUZZ-Co-Diagnostics: Jumps as COVID-19 test on saliva samples uses co's tech ** Calithera Biosciences CALA.O: down 19.7% Calithera slides on equity raise ** Athersys ATHX.O: down 25.5% BUZZ-Athersys drops on $50 mln equity raise to fund COVID-19 trial ** Bed Bath & Beyond BBBY.O: up 17.1% BUZZ-Bed Bath & Beyond: Rises after escaping Q4 with a profit beat amid pandemic ** Arcus Biosciences RCUS.N: up 80.8% BUZZ-Arcus: Surges on report of Gilead in talks for picking stake ** Soligenix Inc SNGX.O: up 11.4% BUZZ-Soligenix: Rises on scoring license for potential COVID-19 vaccine ** Dynavax Tech DVAX.O: up 3.9% BUZZ-Dynavax jumps on entering coronavirus vaccine tie-up ** Twitter TWTR.N: down 4.1% BUZZ-Twitter: Drops as JP Morgan downgrades to 'neutral' ** GoPro GPRO.O: down 3.4% BUZZ-GoPro: Falls after co scraps 2020 forecast on coronavirus fears ** Chegg Inc CHGG.N: down 7.2% BUZZ-Chegg Inc: New grading policy at universities to hurt online learning co ** Bloomin' Brands BLMN.O: up 3.3% BUZZ-Bloomin' Brands: Take-out, delivery sales nearly triple since March ** Bank of New York Mellon BK.N: up 3.7% BUZZ-Bank of New York Mellon rises on Q1 results beat ** Edison Nation EDNT.O: up 73.1% BUZZ-Edison Nation: Surges after securing orders for personal protective equipment ** Abbott Labs ABT.N: up 4.3% BUZZ-Abbott: Rises on quarterly results beat ** Diamond Offshore Drilling DO.N: down 39.0% BUZZ-Diamond Offshore Drilling: Slips after skipping interest payment ** Ra Medical Systems RMED.N: down 13.7% BUZZ-Ra Medical Systems: Falls after filing for stock offering ** Goodyear Tire GT.O: down 6.2% BUZZ-Goodyear Tire: Burns rubber after estimating quarterly loss ** UroGen Pharma URGN.O: up 1.0% BUZZ-UroGen Pharma: Jumps after cancer drug gets FDA nod ** Taiwan Semiconductor Manufacturing Co TSM.N: up 5.8% BUZZ-Taiwan Semiconductor rises as profit nearly doubles ** Pulmatrix PULM.O: up 5.4% BUZZ-Pulmatrix: Jumps after granting license for respiratory disease products ** Marathon Petroleum MPC.N: down 8.2% BUZZ-Marathon Petroleum: Costs, midstream structure keeps Cowen on sidelines ** Square Inc SQ.N: down 6.6% BUZZ-Square Inc: Drops after Raymond James downgrades on COVID-19 risks 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 slipped on Thursday, giving up early gains as concerns about rough first-quarter earnings and lasting economic damage from the coronavirus pandemic offset weekly jobless claims that were better than some had feared. .N At 12:56 ET, the Dow Jones Industrial Average .DJI was down 0.97% at 23,277.22.
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The top three S&P 500 .PG.INX percentage gainers: ** Akamai Technologies AKAM.OQ, up 5.1% ** Anthem Inc ANTM.N, up 5% ** AutoZone Inc AZO.N, up 4.9% The top three S&P 500 .PL.INX percentage losers: ** United Airlines Holdings UAL.OQ, down 11.8% ** American Airlines GroupAAL.OQ, down 10% ** Simon Property Group SPG.N, down 10% The top three NYSE .PG.N percentage gainers: ** VanEck Vectors Energy Income ETF EINC.N, up 197.2% ** VanEck Vectors Rare Earth ETF REMX.N, up 185.7% ** Arcus Biosciences Inc RCUS.N, up 80.5% The top NYSE .PL.N percentage losers: ** Rite Aid Corp RAD.N, down 22.6% ** Plantronics PLT.N, down 20.8% The top three Nasdaq .PG.O percentage gainers: ** OpGen Equity Warrants OPGNW.O, up 109.7% ** MoSys Inc MOSY.O, up 96.4% ** Edison Nation EDNT.O, up 73.1% The top three Nasdaq .PL.O percentage losers: ** Athersys Inc ATHX.O, down 25.5% ** Global Eagle Entertainment ENT.O, down 24.9% ** Calithera Biosciences Inc CALA.O, down 19.7% ** Netflix NFLX.O: up 3.6% BUZZ-Netflix hits record high as lockdowns, "Tiger King" spur more PT raises ** Outfront Media OUT.N: up 1.5% BUZZ-Outfront Media jumps on Providence, Ares liquidity infusion ** Sonoco Products SON.N: down 7.1% BUZZ-Sonoco Products expects hit to Q2 profit due to coronavirus ** BioSig Technologies BSGM.O: down 1.0% BUZZ-BioSig Technologies rises on plan to test antiviral drug as COVID-19 therapy ** Everi Holdings Inc EVRI.N: down 6.7% International Game Technology Plc IGT.N: down 0.9% PlayAGS Inc AGS.N: down 11.9% Scientific Games Corp SGMS.O: down 2.5% BUZZ-Gaming equipment makers: Jefferies sees 2020 EBITDA down 26% to 35% ** Roku ROKU.O: up 11.8% BUZZ-Roku rises after Berenberg says buy ** Cree CREE.O: down 6.8% BUZZ-Cree drops on $500 mln convertible debt deal ** Hilton Worldwide Holdings HLT.N: down 1.1% BUZZ-Hilton dips as COVID-19 likely to weigh on brand, Q1 results ** EBay EBAY.O: up 1.8% BUZZ-EBay: Rises as Starboard withdraws board nominations ** PDS Biotechnology PDSB.O: up 45.3% BUZZ-PDS jumps on plan to start COVID-19 vaccine development program ** Inovio INO.O: up 6.9% BUZZ-Inovio rises as coronavirus vaccine study in S.Korea gets $6.9 mln funding ** Rite Aid RAD.N: down 22.6% BUZZ-Rite Aid: Falls on wider Q4 loss, maintains 2021 outlook ** ConocoPhillips COP.N: down 4.3% BUZZ-ConocoPhillips: Falls on output cut, share buyback suspension ** Jack in the Box JACK.O: up 16.5% BUZZ-Jack in the Box jumps after Q2 projections impress Wall Street ** Eagle Pharma EGRX.O: up 5.5% BUZZ-Eagle Pharma: Rise as hyperthermia drug inhibits virus causing COVID-19 ** Atossa Therapeutics ATOS.O: up 45.1% BUZZ-Atossa leaps on plans to develop potential COVID-19 therapy ** ThermoGenesis THMO.O: up 39.5% BUZZ-ThermoGenesis: Gains after FDA allows COVID-19 diagnostic kit distribution ** Co-Diagnostics CODX.O: up 22.1% BUZZ-Co-Diagnostics: Jumps as COVID-19 test on saliva samples uses co's tech ** Calithera Biosciences CALA.O: down 19.7% Calithera slides on equity raise ** Athersys ATHX.O: down 25.5% BUZZ-Athersys drops on $50 mln equity raise to fund COVID-19 trial ** Bed Bath & Beyond BBBY.O: up 17.1% BUZZ-Bed Bath & Beyond: Rises after escaping Q4 with a profit beat amid pandemic ** Arcus Biosciences RCUS.N: up 80.8% BUZZ-Arcus: Surges on report of Gilead in talks for picking stake ** Soligenix Inc SNGX.O: up 11.4% BUZZ-Soligenix: Rises on scoring license for potential COVID-19 vaccine ** Dynavax Tech DVAX.O: up 3.9% BUZZ-Dynavax jumps on entering coronavirus vaccine tie-up ** Twitter TWTR.N: down 4.1% BUZZ-Twitter: Drops as JP Morgan downgrades to 'neutral' ** GoPro GPRO.O: down 3.4% BUZZ-GoPro: Falls after co scraps 2020 forecast on coronavirus fears ** Chegg Inc CHGG.N: down 7.2% BUZZ-Chegg Inc: New grading policy at universities to hurt online learning co ** Bloomin' Brands BLMN.O: up 3.3% BUZZ-Bloomin' Brands: Take-out, delivery sales nearly triple since March ** Bank of New York Mellon BK.N: up 3.7% BUZZ-Bank of New York Mellon rises on Q1 results beat ** Edison Nation EDNT.O: up 73.1% BUZZ-Edison Nation: Surges after securing orders for personal protective equipment ** Abbott Labs ABT.N: up 4.3% BUZZ-Abbott: Rises on quarterly results beat ** Diamond Offshore Drilling DO.N: down 39.0% BUZZ-Diamond Offshore Drilling: Slips after skipping interest payment ** Ra Medical Systems RMED.N: down 13.7% BUZZ-Ra Medical Systems: Falls after filing for stock offering ** Goodyear Tire GT.O: down 6.2% BUZZ-Goodyear Tire: Burns rubber after estimating quarterly loss ** UroGen Pharma URGN.O: up 1.0% BUZZ-UroGen Pharma: Jumps after cancer drug gets FDA nod ** Taiwan Semiconductor Manufacturing Co TSM.N: up 5.8% BUZZ-Taiwan Semiconductor rises as profit nearly doubles ** Pulmatrix PULM.O: up 5.4% BUZZ-Pulmatrix: Jumps after granting license for respiratory disease products ** Marathon Petroleum MPC.N: down 8.2% BUZZ-Marathon Petroleum: Costs, midstream structure keeps Cowen on sidelines ** Square Inc SQ.N: down 6.6% BUZZ-Square Inc: Drops after Raymond James downgrades on COVID-19 risks The 11 major S&P 500 sectors: Communication Services down 0.42% Consumer Discretionary up 1.31% Consumer Staples
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The top three S&P 500 .PG.INX percentage gainers: ** Akamai Technologies AKAM.OQ, up 5.1% ** Anthem Inc ANTM.N, up 5% ** AutoZone Inc AZO.N, up 4.9% The top three S&P 500 .PL.INX percentage losers: ** United Airlines Holdings UAL.OQ, down 11.8% ** American Airlines GroupAAL.OQ, down 10% ** Simon Property Group SPG.N, down 10% The top three NYSE .PG.N percentage gainers: ** VanEck Vectors Energy Income ETF EINC.N, up 197.2% ** VanEck Vectors Rare Earth ETF REMX.N, up 185.7% ** Arcus Biosciences Inc RCUS.N, up 80.5% The top NYSE .PL.N percentage losers: ** Rite Aid Corp RAD.N, down 22.6% ** Plantronics PLT.N, down 20.8% The top three Nasdaq .PG.O percentage gainers: ** OpGen Equity Warrants OPGNW.O, up 109.7% ** MoSys Inc MOSY.O, up 96.4% ** Edison Nation EDNT.O, up 73.1% The top three Nasdaq .PL.O percentage losers: ** Athersys Inc ATHX.O, down 25.5% ** Global Eagle Entertainment ENT.O, down 24.9% ** Calithera Biosciences Inc CALA.O, down 19.7% ** Netflix NFLX.O: up 3.6% BUZZ-Netflix hits record high as lockdowns, "Tiger King" spur more PT raises ** Outfront Media OUT.N: up 1.5% BUZZ-Outfront Media jumps on Providence, Ares liquidity infusion ** Sonoco Products SON.N: down 7.1% BUZZ-Sonoco Products expects hit to Q2 profit due to coronavirus ** BioSig Technologies BSGM.O: down 1.0% BUZZ-BioSig Technologies rises on plan to test antiviral drug as COVID-19 therapy ** Everi Holdings Inc EVRI.N: down 6.7% International Game Technology Plc IGT.N: down 0.9% PlayAGS Inc AGS.N: down 11.9% Scientific Games Corp SGMS.O: down 2.5% BUZZ-Gaming equipment makers: Jefferies sees 2020 EBITDA down 26% to 35% ** Roku ROKU.O: up 11.8% BUZZ-Roku rises after Berenberg says buy ** Cree CREE.O: down 6.8% BUZZ-Cree drops on $500 mln convertible debt deal ** Hilton Worldwide Holdings HLT.N: down 1.1% BUZZ-Hilton dips as COVID-19 likely to weigh on brand, Q1 results ** EBay EBAY.O: up 1.8% BUZZ-EBay: Rises as Starboard withdraws board nominations ** PDS Biotechnology PDSB.O: up 45.3% BUZZ-PDS jumps on plan to start COVID-19 vaccine development program ** Inovio INO.O: up 6.9% BUZZ-Inovio rises as coronavirus vaccine study in S.Korea gets $6.9 mln funding ** Rite Aid RAD.N: down 22.6% BUZZ-Rite Aid: Falls on wider Q4 loss, maintains 2021 outlook ** ConocoPhillips COP.N: down 4.3% BUZZ-ConocoPhillips: Falls on output cut, share buyback suspension ** Jack in the Box JACK.O: up 16.5% BUZZ-Jack in the Box jumps after Q2 projections impress Wall Street ** Eagle Pharma EGRX.O: up 5.5% BUZZ-Eagle Pharma: Rise as hyperthermia drug inhibits virus causing COVID-19 ** Atossa Therapeutics ATOS.O: up 45.1% BUZZ-Atossa leaps on plans to develop potential COVID-19 therapy ** ThermoGenesis THMO.O: up 39.5% BUZZ-ThermoGenesis: Gains after FDA allows COVID-19 diagnostic kit distribution ** Co-Diagnostics CODX.O: up 22.1% BUZZ-Co-Diagnostics: Jumps as COVID-19 test on saliva samples uses co's tech ** Calithera Biosciences CALA.O: down 19.7% Calithera slides on equity raise ** Athersys ATHX.O: down 25.5% BUZZ-Athersys drops on $50 mln equity raise to fund COVID-19 trial ** Bed Bath & Beyond BBBY.O: up 17.1% BUZZ-Bed Bath & Beyond: Rises after escaping Q4 with a profit beat amid pandemic ** Arcus Biosciences RCUS.N: up 80.8% BUZZ-Arcus: Surges on report of Gilead in talks for picking stake ** Soligenix Inc SNGX.O: up 11.4% BUZZ-Soligenix: Rises on scoring license for potential COVID-19 vaccine ** Dynavax Tech DVAX.O: up 3.9% BUZZ-Dynavax jumps on entering coronavirus vaccine tie-up ** Twitter TWTR.N: down 4.1% BUZZ-Twitter: Drops as JP Morgan downgrades to 'neutral' ** GoPro GPRO.O: down 3.4% BUZZ-GoPro: Falls after co scraps 2020 forecast on coronavirus fears ** Chegg Inc CHGG.N: down 7.2% BUZZ-Chegg Inc: New grading policy at universities to hurt online learning co ** Bloomin' Brands BLMN.O: up 3.3% BUZZ-Bloomin' Brands: Take-out, delivery sales nearly triple since March ** Bank of New York Mellon BK.N: up 3.7% BUZZ-Bank of New York Mellon rises on Q1 results beat ** Edison Nation EDNT.O: up 73.1% BUZZ-Edison Nation: Surges after securing orders for personal protective equipment ** Abbott Labs ABT.N: up 4.3% BUZZ-Abbott: Rises on quarterly results beat ** Diamond Offshore Drilling DO.N: down 39.0% BUZZ-Diamond Offshore Drilling: Slips after skipping interest payment ** Ra Medical Systems RMED.N: down 13.7% BUZZ-Ra Medical Systems: Falls after filing for stock offering ** Goodyear Tire GT.O: down 6.2% BUZZ-Goodyear Tire: Burns rubber after estimating quarterly loss ** UroGen Pharma URGN.O: up 1.0% BUZZ-UroGen Pharma: Jumps after cancer drug gets FDA nod ** Taiwan Semiconductor Manufacturing Co TSM.N: up 5.8% BUZZ-Taiwan Semiconductor rises as profit nearly doubles ** Pulmatrix PULM.O: up 5.4% BUZZ-Pulmatrix: Jumps after granting license for respiratory disease products ** Marathon Petroleum MPC.N: down 8.2% BUZZ-Marathon Petroleum: Costs, midstream structure keeps Cowen on sidelines ** Square Inc SQ.N: down 6.6% BUZZ-Square Inc: Drops after Raymond James downgrades on COVID-19 risks The 11 major S&P 500 sectors: Communication Services .N At 12:56 ET, the Dow Jones Industrial Average .DJI was down 0.97% at 23,277.22. The S&P 500 .SPX was down 0.32% at 2,774.35 and the Nasdaq Composite .IXIC was up 0.46% at 8,431.554.
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6041.0
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2020-04-16 00:00:00 UTC
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BUZZ-U.S. STOCKS ON THE MOVE-Edison Nation, Soligenix, Arcus Biosciences, Bed Bath & Beyond
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AAL
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https://www.nasdaq.com/articles/buzz-u.s.-stocks-on-the-move-edison-nation-soligenix-arcus-biosciences-bed-bath-beyond
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nan
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nan
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Eikon search string for individual stock moves: STXBZ
The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi
The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh
The S&P 500 and Dow Jones slipped on Thursday, giving up early gains as concerns about dismal first-quarter earnings and lasting economic damage from the coronavirus pandemic offset better-than-expected weekly jobless claims numbers..N
At 11:15 ET, the Dow Jones Industrial Average .DJI was down 0.13% at 23,474.8. The S&P 500 .SPX was up 0.45% at 2,795.87 and the Nasdaq Composite .IXIC was up 1.44% at 8,513.636. The top three S&P 500 .PG.INX percentage gainers: ** Nvidia Corp NVDA.OQ, up 5.6% ** Akamai Technologies AKAM.OQ, up 5.5% ** AutoZone Inc AZO.N, up 4.9% The top three S&P 500 .PL.INX percentage losers: ** United Airlines Holdings UAL.OQ, down 9.5% ** American Airlines Group AAL.OQ, down 7% ** Alaska Air Group ALK.N, down 6.5% The top three NYSE .PG.N percentage gainers: ** VanEck Vectors Energy Income ETF EINC.N, up 197.2% ** VanEck Vectors Rare Earth ETF REMX.N, up 185.7% ** Arcus Biosciences Inc RCUS.N, up 83.7% The top three NYSE .PL.N percentage losers: ** Rite Aid Corp RAD.N, down 24.5% ** Hertz Global Holdings HTZ.N, down 17.1% ** Apergy Corp APY.N, down 14.1% The top three Nasdaq .PG.O percentage gainers: ** Liberty TripAdvisor Holdings LTRPB.O, up 119% ** MoSys Inc MOSY.O, up 95.6% ** Edison Nation EDNT.O, up 91.6% The top three Nasdaq .PL.O percentage losers: ** Global Eagle Entertainment ENT.O, down 26.5% ** Athersys Inc ATHX.O, down 23.6% ** Calithera Biosciences Inc CALA.O, down 15.7%
** Cree CREE.O: down 4.7%
BUZZ-Cree drops on $500 mln convertible debt deal ** EBay EBAY.O: up 1.9%
BUZZ-EBay: Rises as Starboard withdraws board nominations ** PDS Biotechnology PDSB.O: up 63.9%
BUZZ-PDS Biotechnology: Jumps on plan to start COVID-19 vaccine development program ** Inovio INO.O: up 8.1%
BUZZ-Inovio rises as coronavirus vaccine study in S.Korea gets $6.9 mln funding ** Rite Aid RAD.N: down 24.5%
BUZZ-Rite Aid: Falls on wider Q4 loss, maintains 2021 outlook ** ConocoPhillips COP.N: down 2.7%
BUZZ-ConocoPhillips: Falls on output cut, share buyback suspension ** Jack in the Box JACK.O: up 17.9%
BUZZ-Jack in the Box: Surges after BTIG ups rating to "buy" ** Eagle Pharma EGRX.O: up 6.6%
BUZZ-Eagle Pharma: Rises as hyperthermia drug inhibits virus causing COVID-19 ** Atossa Therapeutics ATOS.O: up 37.9%
BUZZ-Atossa Therapeutics leaps on plans to develop potential COVID-19 therapy ** ThermoGenesis THMO.O: up 50.1%
BUZZ-ThermoGenesis: Gains after FDA allows COVID-19 diagnostic kit distribution ** Co-Diagnostics CODX.O: up 16.6% BUZZ-Co-Diagnostics: Jumps as COVID-19 test on saliva samples uses co's tech - Reuters News ** Calithera Biosciences CALA.O: down 15.7% Calithera Biosciences slides on equity raise ** Athersys ATHX.O: down 23.6% BUZZ-Athersys drops on $50 mln equity raise to fund COVID-19 trial ** Bed Bath & Beyond BBBY.O: up 18.2% BUZZ-Bed Bath & Beyond: Rises after escaping Q4 with a profit beat amid pandemic ** Arcus Biosciences RCUS.N: up 83.3% BUZZ-Arcus Biosciences: Surges on report of Gilead in talks for picking stake ** Soligenix Inc SNGX.O: up 14.3% BUZZ-Soligenix Inc: Rises on scoring license for potential COVID-19 vaccine ** Dynavax Tech DVAX.O: up 2.3% BUZZ-Dynavax Tech jumps on entering coronavirus vaccine tie-up ** Twitter TWTR.N: down 2.0% BUZZ-Twitter: Drops as JP Morgan downgrades to 'neutral' ** GoPro GPRO.O: down 1.9% BUZZ-GoPro: Falls after co scraps 2020 forecast on coronavirus fears ** Chegg Inc CHGG.N: down 3.6% BUZZ-Chegg Inc: New grading policy at universities to hurt online learning co ** Bloomin' Brands BLMN.O: up 4.3% BUZZ-Bloomin' Brands: Take-out, delivery sales nearly triple since March, shares rise ** Bank of New York Mellon BK.N: up 4.5% BUZZ-Bank of New York Mellon rises on Q1 results beat ** Edison Nation EDNT.O: up 91.6% BUZZ-Edison Nation: Surges after securing orders for personal protective equipment ** Abbott ABT.N: up 4.5% BUZZ-Abbott: Rises on quarterly results beat ** Diamond Offshore Drilling DO.N: down 40.5% BUZZ-Diamond Offshore Drilling: Slips after skipping interest payment ** Ra Medical Systems RMED.N: down 4.6% BUZZ-Ra Medical Systems: Falls after filing for stock offering ** Goodyear Tire GT.O: down 3.2% BUZZ-Goodyear Tire: Burns rubber after estimating quarterly loss ** UroGen Pharma URGN.O: down 3.0% BUZZ-UroGen Pharma: Jumps after cancer drug gets FDA nod ** Netflix NFLX.O: up 4.6% BUZZ-Netflix: Evercore ISI raises PT on favorable trends amid virus outbreak ** Taiwan Semiconductor Manufacturing Co TSM.N: up 6.8% BUZZ-Taiwan Semiconductor Manufacturing rises as profit nearly doubles ** Pulmatrix PULM.O: up 10.6% BUZZ-Pulmatrix: Jumps after granting license for respiratory disease products ** Marathon Petroleum MPC.N: down 6.2% BUZZ-Marathon Petroleum: Costs, midstream structure keeps Cowen on sidelines ** Square Inc SQ.N: down 5.4% BUZZ-Square Inc: Drops after Raymond James downgrades on COVID-19 risks
The 11 major S&P 500 sectors:
Communication Services
.SPLRCL
up 0.32%
Consumer Discretionary
.SPLRCD
up 1.99%
Consumer Staples
.SPLRCS
up 0.31%
Energy
.SPNY
down 2.30%
Financial
.SPSY
down 1.27%
Health
.SPXHC
up 1.47%
Industrial
.SPLRCI
down 0.99%
Information Technology
.SPLRCT
up 0.99%
Materials
.SPLRCM
down 0.77%
Real Estate
.SPLRCR
down 0.24%
Utilities
.SPLRCU
up 0.20%
(Compiled by Amal S in Bengaluru)
((Amal.S@thomsonreuters.com; within U.S.+1 646 223 8780; outside U.S. +91 80 6749 3677;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The top three S&P 500 .PG.INX percentage gainers: ** Nvidia Corp NVDA.OQ, up 5.6% ** Akamai Technologies AKAM.OQ, up 5.5% ** AutoZone Inc AZO.N, up 4.9% The top three S&P 500 .PL.INX percentage losers: ** United Airlines Holdings UAL.OQ, down 9.5% ** American Airlines Group AAL.OQ, down 7% ** Alaska Air Group ALK.N, down 6.5% The top three NYSE .PG.N percentage gainers: ** VanEck Vectors Energy Income ETF EINC.N, up 197.2% ** VanEck Vectors Rare Earth ETF REMX.N, up 185.7% ** Arcus Biosciences Inc RCUS.N, up 83.7% The top three NYSE .PL.N percentage losers: ** Rite Aid Corp RAD.N, down 24.5% ** Hertz Global Holdings HTZ.N, down 17.1% ** Apergy Corp APY.N, down 14.1% The top three Nasdaq .PG.O percentage gainers: ** Liberty TripAdvisor Holdings LTRPB.O, up 119% ** MoSys Inc MOSY.O, up 95.6% ** Edison Nation EDNT.O, up 91.6% The top three Nasdaq .PL.O percentage losers: ** Global Eagle Entertainment ENT.O, down 26.5% ** Athersys Inc ATHX.O, down 23.6% ** Calithera Biosciences Inc CALA.O, down 15.7% ** Cree CREE.O: down 4.7% BUZZ-Cree drops on $500 mln convertible debt deal ** EBay EBAY.O: up 1.9% BUZZ-EBay: Rises as Starboard withdraws board nominations ** PDS Biotechnology PDSB.O: up 63.9% BUZZ-PDS Biotechnology: Jumps on plan to start COVID-19 vaccine development program ** Inovio INO.O: up 8.1% BUZZ-Inovio rises as coronavirus vaccine study in S.Korea gets $6.9 mln funding ** Rite Aid RAD.N: down 24.5% BUZZ-Rite Aid: Falls on wider Q4 loss, maintains 2021 outlook ** ConocoPhillips COP.N: down 2.7% BUZZ-ConocoPhillips: Falls on output cut, share buyback suspension ** Jack in the Box JACK.O: up 17.9% BUZZ-Jack in the Box: Surges after BTIG ups rating to "buy" ** Eagle Pharma EGRX.O: up 6.6% BUZZ-Eagle Pharma: Rises as hyperthermia drug inhibits virus causing COVID-19 ** Atossa Therapeutics ATOS.O: up 37.9% BUZZ-Atossa Therapeutics leaps on plans to develop potential COVID-19 therapy ** ThermoGenesis THMO.O: up 50.1% BUZZ-ThermoGenesis: Gains after FDA allows COVID-19 diagnostic kit distribution ** Co-Diagnostics CODX.O: up 16.6% BUZZ-Co-Diagnostics: Jumps as COVID-19 test on saliva samples uses co's tech - Reuters News ** Calithera Biosciences CALA.O: down 15.7% Calithera Biosciences slides on equity raise ** Athersys ATHX.O: down 23.6% BUZZ-Athersys drops on $50 mln equity raise to fund COVID-19 trial ** Bed Bath & Beyond BBBY.O: up 18.2% BUZZ-Bed Bath & Beyond: Rises after escaping Q4 with a profit beat amid pandemic ** Arcus Biosciences RCUS.N: up 83.3% BUZZ-Arcus Biosciences: Surges on report of Gilead in talks for picking stake ** Soligenix Inc SNGX.O: up 14.3% BUZZ-Soligenix Inc: Rises on scoring license for potential COVID-19 vaccine ** Dynavax Tech DVAX.O: up 2.3% BUZZ-Dynavax Tech jumps on entering coronavirus vaccine tie-up ** Twitter TWTR.N: down 2.0% BUZZ-Twitter: Drops as JP Morgan downgrades to 'neutral' ** GoPro GPRO.O: down 1.9% BUZZ-GoPro: Falls after co scraps 2020 forecast on coronavirus fears ** Chegg Inc CHGG.N: down 3.6% BUZZ-Chegg Inc: New grading policy at universities to hurt online learning co ** Bloomin' Brands BLMN.O: up 4.3% BUZZ-Bloomin' Brands: Take-out, delivery sales nearly triple since March, shares rise ** Bank of New York Mellon BK.N: up 4.5% BUZZ-Bank of New York Mellon rises on Q1 results beat ** Edison Nation EDNT.O: up 91.6% BUZZ-Edison Nation: Surges after securing orders for personal protective equipment ** Abbott ABT.N: up 4.5% BUZZ-Abbott: Rises on quarterly results beat ** Diamond Offshore Drilling DO.N: down 40.5% BUZZ-Diamond Offshore Drilling: Slips after skipping interest payment ** Ra Medical Systems RMED.N: down 4.6% BUZZ-Ra Medical Systems: Falls after filing for stock offering ** Goodyear Tire GT.O: down 3.2% BUZZ-Goodyear Tire: Burns rubber after estimating quarterly loss ** UroGen Pharma URGN.O: down 3.0% BUZZ-UroGen Pharma: Jumps after cancer drug gets FDA nod ** Netflix NFLX.O: up 4.6% BUZZ-Netflix: Evercore ISI raises PT on favorable trends amid virus outbreak ** Taiwan Semiconductor Manufacturing Co TSM.N: up 6.8% BUZZ-Taiwan Semiconductor Manufacturing rises as profit nearly doubles ** Pulmatrix PULM.O: up 10.6% BUZZ-Pulmatrix: Jumps after granting license for respiratory disease products ** Marathon Petroleum MPC.N: down 6.2% BUZZ-Marathon Petroleum: Costs, midstream structure keeps Cowen on sidelines ** Square Inc SQ.N: down 5.4% BUZZ-Square Inc: Drops after Raymond James downgrades on COVID-19 risks 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 slipped on Thursday, giving up early gains as concerns about dismal first-quarter earnings and lasting economic damage from the coronavirus pandemic offset better-than-expected weekly jobless claims numbers..N At 11:15 ET, the Dow Jones Industrial Average .DJI was down 0.13% at 23,474.8. up 0.20% (Compiled by Amal S in Bengaluru) ((Amal.S@thomsonreuters.com; within U.S.+1 646 223 8780; outside U.S. +91 80 6749 3677;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The top three S&P 500 .PG.INX percentage gainers: ** Nvidia Corp NVDA.OQ, up 5.6% ** Akamai Technologies AKAM.OQ, up 5.5% ** AutoZone Inc AZO.N, up 4.9% The top three S&P 500 .PL.INX percentage losers: ** United Airlines Holdings UAL.OQ, down 9.5% ** American Airlines Group AAL.OQ, down 7% ** Alaska Air Group ALK.N, down 6.5% The top three NYSE .PG.N percentage gainers: ** VanEck Vectors Energy Income ETF EINC.N, up 197.2% ** VanEck Vectors Rare Earth ETF REMX.N, up 185.7% ** Arcus Biosciences Inc RCUS.N, up 83.7% The top three NYSE .PL.N percentage losers: ** Rite Aid Corp RAD.N, down 24.5% ** Hertz Global Holdings HTZ.N, down 17.1% ** Apergy Corp APY.N, down 14.1% The top three Nasdaq .PG.O percentage gainers: ** Liberty TripAdvisor Holdings LTRPB.O, up 119% ** MoSys Inc MOSY.O, up 95.6% ** Edison Nation EDNT.O, up 91.6% The top three Nasdaq .PL.O percentage losers: ** Global Eagle Entertainment ENT.O, down 26.5% ** Athersys Inc ATHX.O, down 23.6% ** Calithera Biosciences Inc CALA.O, down 15.7% ** Cree CREE.O: down 4.7% BUZZ-Cree drops on $500 mln convertible debt deal ** EBay EBAY.O: up 1.9% BUZZ-EBay: Rises as Starboard withdraws board nominations ** PDS Biotechnology PDSB.O: up 63.9% BUZZ-PDS Biotechnology: Jumps on plan to start COVID-19 vaccine development program ** Inovio INO.O: up 8.1% BUZZ-Inovio rises as coronavirus vaccine study in S.Korea gets $6.9 mln funding ** Rite Aid RAD.N: down 24.5% BUZZ-Rite Aid: Falls on wider Q4 loss, maintains 2021 outlook ** ConocoPhillips COP.N: down 2.7% BUZZ-ConocoPhillips: Falls on output cut, share buyback suspension ** Jack in the Box JACK.O: up 17.9% BUZZ-Jack in the Box: Surges after BTIG ups rating to "buy" ** Eagle Pharma EGRX.O: up 6.6% BUZZ-Eagle Pharma: Rises as hyperthermia drug inhibits virus causing COVID-19 ** Atossa Therapeutics ATOS.O: up 37.9% BUZZ-Atossa Therapeutics leaps on plans to develop potential COVID-19 therapy ** ThermoGenesis THMO.O: up 50.1% BUZZ-ThermoGenesis: Gains after FDA allows COVID-19 diagnostic kit distribution ** Co-Diagnostics CODX.O: up 16.6% BUZZ-Co-Diagnostics: Jumps as COVID-19 test on saliva samples uses co's tech - Reuters News ** Calithera Biosciences CALA.O: down 15.7% Calithera Biosciences slides on equity raise ** Athersys ATHX.O: down 23.6% BUZZ-Athersys drops on $50 mln equity raise to fund COVID-19 trial ** Bed Bath & Beyond BBBY.O: up 18.2% BUZZ-Bed Bath & Beyond: Rises after escaping Q4 with a profit beat amid pandemic ** Arcus Biosciences RCUS.N: up 83.3% BUZZ-Arcus Biosciences: Surges on report of Gilead in talks for picking stake ** Soligenix Inc SNGX.O: up 14.3% BUZZ-Soligenix Inc: Rises on scoring license for potential COVID-19 vaccine ** Dynavax Tech DVAX.O: up 2.3% BUZZ-Dynavax Tech jumps on entering coronavirus vaccine tie-up ** Twitter TWTR.N: down 2.0% BUZZ-Twitter: Drops as JP Morgan downgrades to 'neutral' ** GoPro GPRO.O: down 1.9% BUZZ-GoPro: Falls after co scraps 2020 forecast on coronavirus fears ** Chegg Inc CHGG.N: down 3.6% BUZZ-Chegg Inc: New grading policy at universities to hurt online learning co ** Bloomin' Brands BLMN.O: up 4.3% BUZZ-Bloomin' Brands: Take-out, delivery sales nearly triple since March, shares rise ** Bank of New York Mellon BK.N: up 4.5% BUZZ-Bank of New York Mellon rises on Q1 results beat ** Edison Nation EDNT.O: up 91.6% BUZZ-Edison Nation: Surges after securing orders for personal protective equipment ** Abbott ABT.N: up 4.5% BUZZ-Abbott: Rises on quarterly results beat ** Diamond Offshore Drilling DO.N: down 40.5% BUZZ-Diamond Offshore Drilling: Slips after skipping interest payment ** Ra Medical Systems RMED.N: down 4.6% BUZZ-Ra Medical Systems: Falls after filing for stock offering ** Goodyear Tire GT.O: down 3.2% BUZZ-Goodyear Tire: Burns rubber after estimating quarterly loss ** UroGen Pharma URGN.O: down 3.0% BUZZ-UroGen Pharma: Jumps after cancer drug gets FDA nod ** Netflix NFLX.O: up 4.6% BUZZ-Netflix: Evercore ISI raises PT on favorable trends amid virus outbreak ** Taiwan Semiconductor Manufacturing Co TSM.N: up 6.8% BUZZ-Taiwan Semiconductor Manufacturing rises as profit nearly doubles ** Pulmatrix PULM.O: up 10.6% BUZZ-Pulmatrix: Jumps after granting license for respiratory disease products ** Marathon Petroleum MPC.N: down 6.2% BUZZ-Marathon Petroleum: Costs, midstream structure keeps Cowen on sidelines ** Square Inc SQ.N: down 5.4% BUZZ-Square Inc: Drops after Raymond James downgrades on COVID-19 risks 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 slipped on Thursday, giving up early gains as concerns about dismal first-quarter earnings and lasting economic damage from the coronavirus pandemic offset better-than-expected weekly jobless claims numbers..N At 11:15 ET, the Dow Jones Industrial Average .DJI was down 0.13% at 23,474.8. up 0.20% (Compiled by Amal S in Bengaluru) ((Amal.S@thomsonreuters.com; within U.S.+1 646 223 8780; outside U.S. +91 80 6749 3677;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The top three S&P 500 .PG.INX percentage gainers: ** Nvidia Corp NVDA.OQ, up 5.6% ** Akamai Technologies AKAM.OQ, up 5.5% ** AutoZone Inc AZO.N, up 4.9% The top three S&P 500 .PL.INX percentage losers: ** United Airlines Holdings UAL.OQ, down 9.5% ** American Airlines Group AAL.OQ, down 7% ** Alaska Air Group ALK.N, down 6.5% The top three NYSE .PG.N percentage gainers: ** VanEck Vectors Energy Income ETF EINC.N, up 197.2% ** VanEck Vectors Rare Earth ETF REMX.N, up 185.7% ** Arcus Biosciences Inc RCUS.N, up 83.7% The top three NYSE .PL.N percentage losers: ** Rite Aid Corp RAD.N, down 24.5% ** Hertz Global Holdings HTZ.N, down 17.1% ** Apergy Corp APY.N, down 14.1% The top three Nasdaq .PG.O percentage gainers: ** Liberty TripAdvisor Holdings LTRPB.O, up 119% ** MoSys Inc MOSY.O, up 95.6% ** Edison Nation EDNT.O, up 91.6% The top three Nasdaq .PL.O percentage losers: ** Global Eagle Entertainment ENT.O, down 26.5% ** Athersys Inc ATHX.O, down 23.6% ** Calithera Biosciences Inc CALA.O, down 15.7% ** Cree CREE.O: down 4.7% BUZZ-Cree drops on $500 mln convertible debt deal ** EBay EBAY.O: up 1.9% BUZZ-EBay: Rises as Starboard withdraws board nominations ** PDS Biotechnology PDSB.O: up 63.9% BUZZ-PDS Biotechnology: Jumps on plan to start COVID-19 vaccine development program ** Inovio INO.O: up 8.1% BUZZ-Inovio rises as coronavirus vaccine study in S.Korea gets $6.9 mln funding ** Rite Aid RAD.N: down 24.5% BUZZ-Rite Aid: Falls on wider Q4 loss, maintains 2021 outlook ** ConocoPhillips COP.N: down 2.7% BUZZ-ConocoPhillips: Falls on output cut, share buyback suspension ** Jack in the Box JACK.O: up 17.9% BUZZ-Jack in the Box: Surges after BTIG ups rating to "buy" ** Eagle Pharma EGRX.O: up 6.6% BUZZ-Eagle Pharma: Rises as hyperthermia drug inhibits virus causing COVID-19 ** Atossa Therapeutics ATOS.O: up 37.9% BUZZ-Atossa Therapeutics leaps on plans to develop potential COVID-19 therapy ** ThermoGenesis THMO.O: up 50.1% BUZZ-ThermoGenesis: Gains after FDA allows COVID-19 diagnostic kit distribution ** Co-Diagnostics CODX.O: up 16.6% BUZZ-Co-Diagnostics: Jumps as COVID-19 test on saliva samples uses co's tech - Reuters News ** Calithera Biosciences CALA.O: down 15.7% Calithera Biosciences slides on equity raise ** Athersys ATHX.O: down 23.6% BUZZ-Athersys drops on $50 mln equity raise to fund COVID-19 trial ** Bed Bath & Beyond BBBY.O: up 18.2% BUZZ-Bed Bath & Beyond: Rises after escaping Q4 with a profit beat amid pandemic ** Arcus Biosciences RCUS.N: up 83.3% BUZZ-Arcus Biosciences: Surges on report of Gilead in talks for picking stake ** Soligenix Inc SNGX.O: up 14.3% BUZZ-Soligenix Inc: Rises on scoring license for potential COVID-19 vaccine ** Dynavax Tech DVAX.O: up 2.3% BUZZ-Dynavax Tech jumps on entering coronavirus vaccine tie-up ** Twitter TWTR.N: down 2.0% BUZZ-Twitter: Drops as JP Morgan downgrades to 'neutral' ** GoPro GPRO.O: down 1.9% BUZZ-GoPro: Falls after co scraps 2020 forecast on coronavirus fears ** Chegg Inc CHGG.N: down 3.6% BUZZ-Chegg Inc: New grading policy at universities to hurt online learning co ** Bloomin' Brands BLMN.O: up 4.3% BUZZ-Bloomin' Brands: Take-out, delivery sales nearly triple since March, shares rise ** Bank of New York Mellon BK.N: up 4.5% BUZZ-Bank of New York Mellon rises on Q1 results beat ** Edison Nation EDNT.O: up 91.6% BUZZ-Edison Nation: Surges after securing orders for personal protective equipment ** Abbott ABT.N: up 4.5% BUZZ-Abbott: Rises on quarterly results beat ** Diamond Offshore Drilling DO.N: down 40.5% BUZZ-Diamond Offshore Drilling: Slips after skipping interest payment ** Ra Medical Systems RMED.N: down 4.6% BUZZ-Ra Medical Systems: Falls after filing for stock offering ** Goodyear Tire GT.O: down 3.2% BUZZ-Goodyear Tire: Burns rubber after estimating quarterly loss ** UroGen Pharma URGN.O: down 3.0% BUZZ-UroGen Pharma: Jumps after cancer drug gets FDA nod ** Netflix NFLX.O: up 4.6% BUZZ-Netflix: Evercore ISI raises PT on favorable trends amid virus outbreak ** Taiwan Semiconductor Manufacturing Co TSM.N: up 6.8% BUZZ-Taiwan Semiconductor Manufacturing rises as profit nearly doubles ** Pulmatrix PULM.O: up 10.6% BUZZ-Pulmatrix: Jumps after granting license for respiratory disease products ** Marathon Petroleum MPC.N: down 6.2% BUZZ-Marathon Petroleum: Costs, midstream structure keeps Cowen on sidelines ** Square Inc SQ.N: down 5.4% BUZZ-Square Inc: Drops after Raymond James downgrades on COVID-19 risks 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 slipped on Thursday, giving up early gains as concerns about dismal first-quarter earnings and lasting economic damage from the coronavirus pandemic offset better-than-expected weekly jobless claims numbers..N At 11:15 ET, the Dow Jones Industrial Average .DJI was down 0.13% at 23,474.8. up 0.32% Consumer Discretionary
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The top three S&P 500 .PG.INX percentage gainers: ** Nvidia Corp NVDA.OQ, up 5.6% ** Akamai Technologies AKAM.OQ, up 5.5% ** AutoZone Inc AZO.N, up 4.9% The top three S&P 500 .PL.INX percentage losers: ** United Airlines Holdings UAL.OQ, down 9.5% ** American Airlines Group AAL.OQ, down 7% ** Alaska Air Group ALK.N, down 6.5% The top three NYSE .PG.N percentage gainers: ** VanEck Vectors Energy Income ETF EINC.N, up 197.2% ** VanEck Vectors Rare Earth ETF REMX.N, up 185.7% ** Arcus Biosciences Inc RCUS.N, up 83.7% The top three NYSE .PL.N percentage losers: ** Rite Aid Corp RAD.N, down 24.5% ** Hertz Global Holdings HTZ.N, down 17.1% ** Apergy Corp APY.N, down 14.1% The top three Nasdaq .PG.O percentage gainers: ** Liberty TripAdvisor Holdings LTRPB.O, up 119% ** MoSys Inc MOSY.O, up 95.6% ** Edison Nation EDNT.O, up 91.6% The top three Nasdaq .PL.O percentage losers: ** Global Eagle Entertainment ENT.O, down 26.5% ** Athersys Inc ATHX.O, down 23.6% ** Calithera Biosciences Inc CALA.O, down 15.7% ** Cree CREE.O: down 4.7% BUZZ-Cree drops on $500 mln convertible debt deal ** EBay EBAY.O: up 1.9% BUZZ-EBay: Rises as Starboard withdraws board nominations ** PDS Biotechnology PDSB.O: up 63.9% BUZZ-PDS Biotechnology: Jumps on plan to start COVID-19 vaccine development program ** Inovio INO.O: up 8.1% BUZZ-Inovio rises as coronavirus vaccine study in S.Korea gets $6.9 mln funding ** Rite Aid RAD.N: down 24.5% BUZZ-Rite Aid: Falls on wider Q4 loss, maintains 2021 outlook ** ConocoPhillips COP.N: down 2.7% BUZZ-ConocoPhillips: Falls on output cut, share buyback suspension ** Jack in the Box JACK.O: up 17.9% BUZZ-Jack in the Box: Surges after BTIG ups rating to "buy" ** Eagle Pharma EGRX.O: up 6.6% BUZZ-Eagle Pharma: Rises as hyperthermia drug inhibits virus causing COVID-19 ** Atossa Therapeutics ATOS.O: up 37.9% BUZZ-Atossa Therapeutics leaps on plans to develop potential COVID-19 therapy ** ThermoGenesis THMO.O: up 50.1% BUZZ-ThermoGenesis: Gains after FDA allows COVID-19 diagnostic kit distribution ** Co-Diagnostics CODX.O: up 16.6% BUZZ-Co-Diagnostics: Jumps as COVID-19 test on saliva samples uses co's tech - Reuters News ** Calithera Biosciences CALA.O: down 15.7% Calithera Biosciences slides on equity raise ** Athersys ATHX.O: down 23.6% BUZZ-Athersys drops on $50 mln equity raise to fund COVID-19 trial ** Bed Bath & Beyond BBBY.O: up 18.2% BUZZ-Bed Bath & Beyond: Rises after escaping Q4 with a profit beat amid pandemic ** Arcus Biosciences RCUS.N: up 83.3% BUZZ-Arcus Biosciences: Surges on report of Gilead in talks for picking stake ** Soligenix Inc SNGX.O: up 14.3% BUZZ-Soligenix Inc: Rises on scoring license for potential COVID-19 vaccine ** Dynavax Tech DVAX.O: up 2.3% BUZZ-Dynavax Tech jumps on entering coronavirus vaccine tie-up ** Twitter TWTR.N: down 2.0% BUZZ-Twitter: Drops as JP Morgan downgrades to 'neutral' ** GoPro GPRO.O: down 1.9% BUZZ-GoPro: Falls after co scraps 2020 forecast on coronavirus fears ** Chegg Inc CHGG.N: down 3.6% BUZZ-Chegg Inc: New grading policy at universities to hurt online learning co ** Bloomin' Brands BLMN.O: up 4.3% BUZZ-Bloomin' Brands: Take-out, delivery sales nearly triple since March, shares rise ** Bank of New York Mellon BK.N: up 4.5% BUZZ-Bank of New York Mellon rises on Q1 results beat ** Edison Nation EDNT.O: up 91.6% BUZZ-Edison Nation: Surges after securing orders for personal protective equipment ** Abbott ABT.N: up 4.5% BUZZ-Abbott: Rises on quarterly results beat ** Diamond Offshore Drilling DO.N: down 40.5% BUZZ-Diamond Offshore Drilling: Slips after skipping interest payment ** Ra Medical Systems RMED.N: down 4.6% BUZZ-Ra Medical Systems: Falls after filing for stock offering ** Goodyear Tire GT.O: down 3.2% BUZZ-Goodyear Tire: Burns rubber after estimating quarterly loss ** UroGen Pharma URGN.O: down 3.0% BUZZ-UroGen Pharma: Jumps after cancer drug gets FDA nod ** Netflix NFLX.O: up 4.6% BUZZ-Netflix: Evercore ISI raises PT on favorable trends amid virus outbreak ** Taiwan Semiconductor Manufacturing Co TSM.N: up 6.8% BUZZ-Taiwan Semiconductor Manufacturing rises as profit nearly doubles ** Pulmatrix PULM.O: up 10.6% BUZZ-Pulmatrix: Jumps after granting license for respiratory disease products ** Marathon Petroleum MPC.N: down 6.2% BUZZ-Marathon Petroleum: Costs, midstream structure keeps Cowen on sidelines ** Square Inc SQ.N: down 5.4% BUZZ-Square Inc: Drops after Raymond James downgrades on COVID-19 risks 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 slipped on Thursday, giving up early gains as concerns about dismal first-quarter earnings and lasting economic damage from the coronavirus pandemic offset better-than-expected weekly jobless claims numbers..N At 11:15 ET, the Dow Jones Industrial Average .DJI was down 0.13% at 23,474.8. The S&P 500 .SPX was up 0.45% at 2,795.87 and the Nasdaq Composite .IXIC was up 1.44% at 8,513.636.
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6042.0
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2020-04-16 00:00:00 UTC
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S&P 500 Movers: UAL, ABT
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AAL
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https://www.nasdaq.com/articles/sp-500-movers%3A-ual-abt-2020-04-16
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nan
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nan
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In early trading on Thursday, shares of Abbott Laboratories topped the list of the day's best performing components of the S&P 500 index, trading up 5.5%. Year to date, Abbott Laboratories registers a 10.4% gain.
And the worst performing S&P 500 component thus far on the day is United Airlines Holdings, trading down 10.4%. United Airlines Holdings is lower by about 67.6% looking at the year to date performance.
Two other components making moves today are American Airlines Group, trading down 7.9%, and NVIDIA, trading up 4.8% on the day.
VIDEO: S&P 500 Movers: UAL, ABT
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Year to date, Abbott Laboratories registers a 10.4% gain. And the worst performing S&P 500 component thus far on the day is United Airlines Holdings, trading down 10.4%. United Airlines Holdings is lower by about 67.6% looking at the year to date performance.
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Year to date, Abbott Laboratories registers a 10.4% gain. And the worst performing S&P 500 component thus far on the day is United Airlines Holdings, trading down 10.4%. United Airlines Holdings is lower by about 67.6% looking at the year to date performance.
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In early trading on Thursday, shares of Abbott Laboratories topped the list of the day's best performing components of the S&P 500 index, trading up 5.5%. And the worst performing S&P 500 component thus far on the day is United Airlines Holdings, trading down 10.4%. Two other components making moves today are American Airlines Group, trading down 7.9%, and NVIDIA, trading up 4.8% on the day.
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In early trading on Thursday, shares of Abbott Laboratories topped the list of the day's best performing components of the S&P 500 index, trading up 5.5%. And the worst performing S&P 500 component thus far on the day is United Airlines Holdings, trading down 10.4%. VIDEO: S&P 500 Movers: UAL, ABT The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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6043.0
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2020-04-16 00:00:00 UTC
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Nasdaq 100 Movers: UAL, SGEN
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AAL
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https://www.nasdaq.com/articles/nasdaq-100-movers%3A-ual-sgen-2020-04-16
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nan
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nan
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In early trading on Thursday, shares of Seattle Genetics topped the list of the day's best performing components of the Nasdaq 100 index, trading up 4.4%. Year to date, Seattle Genetics registers a 14.2% gain.
And the worst performing Nasdaq 100 component thus far on the day is United Airlines Holdings, trading down 8.3%. United Airlines Holdings is lower by about 66.8% looking at the year to date performance.
Two other components making moves today are American Airlines Group, trading down 6.1%, and JD.com, trading up 3.4% on the day.
VIDEO: Nasdaq 100 Movers: UAL, SGEN
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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And the worst performing Nasdaq 100 component thus far on the day is United Airlines Holdings, trading down 8.3%. United Airlines Holdings is lower by about 66.8% looking at the year to date performance. VIDEO: Nasdaq 100 Movers: UAL, SGEN The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Year to date, Seattle Genetics registers a 14.2% gain. And the worst performing Nasdaq 100 component thus far on the day is United Airlines Holdings, trading down 8.3%. United Airlines Holdings is lower by about 66.8% looking at the year to date performance.
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In early trading on Thursday, shares of Seattle Genetics topped the list of the day's best performing components of the Nasdaq 100 index, trading up 4.4%. And the worst performing Nasdaq 100 component thus far on the day is United Airlines Holdings, trading down 8.3%. Two other components making moves today are American Airlines Group, trading down 6.1%, and JD.com, trading up 3.4% on the day.
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In early trading on Thursday, shares of Seattle Genetics topped the list of the day's best performing components of the Nasdaq 100 index, trading up 4.4%. And the worst performing Nasdaq 100 component thus far on the day is United Airlines Holdings, trading down 8.3%. VIDEO: Nasdaq 100 Movers: UAL, SGEN The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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6044.0
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2020-04-15 00:00:00 UTC
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EXCLUSIVE-Major U.S. airlines plan to apply for government loans in addition to grants -sources
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AAL
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https://www.nasdaq.com/articles/exclusive-major-u.s.-airlines-plan-to-apply-for-government-loans-in-addition-to-grants-0
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nan
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nan
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By Tracy Rucinski and David Shepardson
April 15 (Reuters) - Numerous major U.S. airlines are preparing to apply this week for a $25 billion U.S. government loan program after winning billions in federal payroll grants, people familiar with the matter said.
The U.S. Treasury told airlines to apply by Friday if they want priority consideration, according to documents posted on its website.
An airline official told Reuters most airlines are expected to apply in part because they will not be required to draw down the loan before the end of September and the terms are favorable.
American Airlines Group Inc AAL.O confirmed on Tuesday it plans to apply for a $4.75 billion loan ahead of the Friday deadline set by Treasury for priority consideration. Alaska Airlines Inc ALKAIR.UL said it would apply for $1.1 billion in federal loans.
Among other large carriers, United Airlines Holdings Inc UAL.O and Southwest Airlines Co LUV.N will also apply, while Delta Air Lines DAL.N was still considering it, the people said. Another industry person said all the major carriers would likely apply with the exception of Spirit Airlines SAVE.N.
While some airlines had initially planned to tap only the $25 billion in federal payroll grants, there is now a growing realization that the terms of the separate government loan package may be significantly better than those available in capital markets, the people said.
Treasury agreed in principle on Tuesday to award the payroll assistance to airlines but will not release the funds all at once.
(Reporting by Tracy Rucinski in Chicago and David Shepardson in Washington Editing by Chris Reese and Matthew Lewis)
((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.
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American Airlines Group Inc AAL.O confirmed on Tuesday it plans to apply for a $4.75 billion loan ahead of the Friday deadline set by Treasury for priority consideration. While some airlines had initially planned to tap only the $25 billion in federal payroll grants, there is now a growing realization that the terms of the separate government loan package may be significantly better than those available in capital markets, the people said. Treasury agreed in principle on Tuesday to award the payroll assistance to airlines but will not release the funds all at once.
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American Airlines Group Inc AAL.O confirmed on Tuesday it plans to apply for a $4.75 billion loan ahead of the Friday deadline set by Treasury for priority consideration. By Tracy Rucinski and David Shepardson April 15 (Reuters) - Numerous major U.S. airlines are preparing to apply this week for a $25 billion U.S. government loan program after winning billions in federal payroll grants, people familiar with the matter said. The U.S. Treasury told airlines to apply by Friday if they want priority consideration, according to documents posted on its website.
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American Airlines Group Inc AAL.O confirmed on Tuesday it plans to apply for a $4.75 billion loan ahead of the Friday deadline set by Treasury for priority consideration. By Tracy Rucinski and David Shepardson April 15 (Reuters) - Numerous major U.S. airlines are preparing to apply this week for a $25 billion U.S. government loan program after winning billions in federal payroll grants, people familiar with the matter said. An airline official told Reuters most airlines are expected to apply in part because they will not be required to draw down the loan before the end of September and the terms are favorable.
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American Airlines Group Inc AAL.O confirmed on Tuesday it plans to apply for a $4.75 billion loan ahead of the Friday deadline set by Treasury for priority consideration. By Tracy Rucinski and David Shepardson April 15 (Reuters) - Numerous major U.S. airlines are preparing to apply this week for a $25 billion U.S. government loan program after winning billions in federal payroll grants, people familiar with the matter said. An airline official told Reuters most airlines are expected to apply in part because they will not be required to draw down the loan before the end of September and the terms are favorable.
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2020-04-15 00:00:00 UTC
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Will the Airline Bailout Hurt Investors?
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https://www.nasdaq.com/articles/will-the-airline-bailout-hurt-investors-2020-04-15
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The coronavirus pandemic has brought the global economy to a standstill, and few industries have taken more of a hit than the airlines. With travel restrictions making passenger travel nearly impossible, major airlines such as Delta Air Lines (NYSE: DAL), Southwest Airlines (NYSE: LUV), and American Airlines Group (NASDAQ: AAL) have seen their revenue almost disappear -- and their share prices plunge.
To try to help the airline industry, the economic stimulus bill allowed the federal government to make grants and loans to ailing carriers. Most major airlines have requested that aid, and now, we're starting to see what some of those aid packages look like. Not all of the details are available, but early indications show that shareholders should be aware of what the deals could mean for their ownership interest in airlines going forward.
Image source: Getty Images.
Delta makes a deal
On Tuesday, Delta CEO Ed Bastian released an internal memorandum announcing that it had reached agreement with the U.S. Treasury for $5.4 billion in emergency relief from the payroll support program. As a result of the aid, Bastian said the Atlanta-based airline wouldn't have to furlough workers or impose reductions in pay through the end of September. That's welcome news, given the 95% drop in passenger traffic Delta has seen.
The $5.4 billion breaks down into two parts. Delta borrowed $1.6 billion of that money in what Bastian called an "unsecured 10-year low-interest loan." The remaining $3.8 billion apparently has no payback requirements.
However, Delta will have to give the federal government warrants to purchase shares of the airline's stock over the next five years. The memo indicated that the government will be able to buy about a 1% interest in Delta if it chooses to pay $24.39 per share -- roughly where the airline's stock closed on Tuesday.
Similar terms for American
American Airlines Group also filed a disclosure that gave the terms of its agreement with the federal government. The Fort Worth-based airline expects $5.81 billion in aid for payroll support, and it believes $1.71 billion of that will be in the form of a low-interest 10-year loan.
For the remaining $4.1 billion, American expects to issue five-year warrants for 13.7 million shares at $12.51 per share. That's slightly higher than where American shares closed Tuesday, but the number of warrants works out to a larger percentage of the airline's total share count, at just over 3%.
In addition, American revealed terms for another type of federal aid. The company expects to borrow $4.75 billion under the federal government's loan program, and it'll have to offer security in the form of collateral for the loans. The U.S. Treasury is apparently demanding a much larger stake of 38 million shares of American stock for the loan under this part of the program, which Delta's announcement didn't address.
Watch out for shareholder dilution
As of noon on April 15, Southwest and United Airlines Holdings (NASDAQ: UAL) hadn't filed disclosures with the SEC regarding the terms of any aid they expect to receive. Nevertheless, most analysts believe they'll end up with similar provisions, including having to pay back roughly 30% of aid under the payroll support program and offering warrants.
What that means for airline shareholders is that any recovery in the stock prices of airlines will result in a portion of gains getting diverted to the Treasury. For Delta, a 1% stake isn't huge, but American's proposal has a potentially much larger clawback.
Airline stocks initially reacted favorably to the news, but once shareholders had a chance to consider the terms, the share prices continued lower. With no end in sight to travel disruptions, it appears likely that the aid to help airlines through September might not be enough to outlast the impacts of the coronavirus on the industry.
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Dan Caplinger has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Delta Air Lines and Southwest Airlines. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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With travel restrictions making passenger travel nearly impossible, major airlines such as Delta Air Lines (NYSE: DAL), Southwest Airlines (NYSE: LUV), and American Airlines Group (NASDAQ: AAL) have seen their revenue almost disappear -- and their share prices plunge. The U.S. Treasury is apparently demanding a much larger stake of 38 million shares of American stock for the loan under this part of the program, which Delta's announcement didn't address. Watch out for shareholder dilution As of noon on April 15, Southwest and United Airlines Holdings (NASDAQ: UAL) hadn't filed disclosures with the SEC regarding the terms of any aid they expect to receive.
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With travel restrictions making passenger travel nearly impossible, major airlines such as Delta Air Lines (NYSE: DAL), Southwest Airlines (NYSE: LUV), and American Airlines Group (NASDAQ: AAL) have seen their revenue almost disappear -- and their share prices plunge. Similar terms for American American Airlines Group also filed a disclosure that gave the terms of its agreement with the federal government. The U.S. Treasury is apparently demanding a much larger stake of 38 million shares of American stock for the loan under this part of the program, which Delta's announcement didn't address.
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With travel restrictions making passenger travel nearly impossible, major airlines such as Delta Air Lines (NYSE: DAL), Southwest Airlines (NYSE: LUV), and American Airlines Group (NASDAQ: AAL) have seen their revenue almost disappear -- and their share prices plunge. However, Delta will have to give the federal government warrants to purchase shares of the airline's stock over the next five years. The memo indicated that the government will be able to buy about a 1% interest in Delta if it chooses to pay $24.39 per share -- roughly where the airline's stock closed on Tuesday.
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With travel restrictions making passenger travel nearly impossible, major airlines such as Delta Air Lines (NYSE: DAL), Southwest Airlines (NYSE: LUV), and American Airlines Group (NASDAQ: AAL) have seen their revenue almost disappear -- and their share prices plunge. Similar terms for American American Airlines Group also filed a disclosure that gave the terms of its agreement with the federal government. The company expects to borrow $4.75 billion under the federal government's loan program, and it'll have to offer security in the form of collateral for the loans.
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2020-04-15 00:00:00 UTC
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United cuts May flights by 90%, tells employees to brace for job cuts
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https://www.nasdaq.com/articles/united-cuts-may-flights-by-90-tells-employees-to-brace-for-job-cuts-2020-04-15
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By Tracy Rucinski
April 15 (Reuters) - United Airlines Holdings Inc UAL.O said on Wednesday that it has cut its flight schedule by 90% in May and expects similar cuts for June as a result of the coronavirus pandemic, and warned that travel demand that is now "essentially at zero shows no sign of improving in the near term," making job cuts likely.
United disclosed its outlook in a memo to employees that it publicly released. The memo was from Chief Executive Oscar Munoz and President Scott Kirby.
Like other U.S. airlines, travel demand for Chicago-based United has cratered as most U.S. states have ordered residents to stay at home in order to contain spread of the coronavirus.
United said it flew less than 200,000 people in the first two weeks of April, a 97% drop from the more than 6 million people it flew during the same time in 2019. It expects to fly fewer people during the entire month of May than it did on a single day in May of last year, Munoz and Kirby said.
"The historically severe economic impact of this crisis means even when travel demand starts to inch back, it likely will not bounce back quickly," they said.
"We believe that the health concerns about COVID-19 are likely to linger which means even when social distancing measures are relaxed, and businesses and schools start to reopen, life won't necessarily return to normal."
While the $5 billion that United expect to receive in government payroll support under the CARES Act bars its from involuntary furloughs before Sept. 30, the airline indicated that it expects to have to cut payroll after that. It said it will be offering new voluntary leave packages in the coming weeks and voluntary separation programs.
United said that the government money does not cover its total payroll expense, and noted that payroll is only about 30% of total costs, which also include airport rent and supplies.
So far more than 20,000 United employees have volunteered for unpaid leaves of absence.
United's efforts to further cut payroll costs are similar to moves by peers Delta Air Lines Inc DAL.N and American Airlines Group Inc AAL.O.
United is among airlines eyeing a separate $25 billion federal loan package for U.S. passenger carriers given expected favorable terms, Reuters reported on Wednesday.
United said last week it plans to start daily service on May 4 from Chicago to London, Newark to Amsterdam, and Washington to Frankfurt, and three flights a week between Washington and Buenos Aires starting on May 5.
It is canceling planned seasonal summer service from Newark to Prague; Stockholm; Palermo, Italy; and Reykjavik, Iceland; but continues to operate flights between the United States and Frankfurt, Brazil, Sydney, Tel Aviv and Tokyo, as well as cargo and repatriation flights.
(Reporting by Tracy Rucinski; Editing by Leslie Adler)
((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.
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United's efforts to further cut payroll costs are similar to moves by peers Delta Air Lines Inc DAL.N and American Airlines Group Inc AAL.O. "We believe that the health concerns about COVID-19 are likely to linger which means even when social distancing measures are relaxed, and businesses and schools start to reopen, life won't necessarily return to normal." United is among airlines eyeing a separate $25 billion federal loan package for U.S. passenger carriers given expected favorable terms, Reuters reported on Wednesday.
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United's efforts to further cut payroll costs are similar to moves by peers Delta Air Lines Inc DAL.N and American Airlines Group Inc AAL.O. By Tracy Rucinski April 15 (Reuters) - United Airlines Holdings Inc UAL.O said on Wednesday that it has cut its flight schedule by 90% in May and expects similar cuts for June as a result of the coronavirus pandemic, and warned that travel demand that is now "essentially at zero shows no sign of improving in the near term," making job cuts likely. It said it will be offering new voluntary leave packages in the coming weeks and voluntary separation programs.
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United's efforts to further cut payroll costs are similar to moves by peers Delta Air Lines Inc DAL.N and American Airlines Group Inc AAL.O. By Tracy Rucinski April 15 (Reuters) - United Airlines Holdings Inc UAL.O said on Wednesday that it has cut its flight schedule by 90% in May and expects similar cuts for June as a result of the coronavirus pandemic, and warned that travel demand that is now "essentially at zero shows no sign of improving in the near term," making job cuts likely. While the $5 billion that United expect to receive in government payroll support under the CARES Act bars its from involuntary furloughs before Sept. 30, the airline indicated that it expects to have to cut payroll after that.
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United's efforts to further cut payroll costs are similar to moves by peers Delta Air Lines Inc DAL.N and American Airlines Group Inc AAL.O. By Tracy Rucinski April 15 (Reuters) - United Airlines Holdings Inc UAL.O said on Wednesday that it has cut its flight schedule by 90% in May and expects similar cuts for June as a result of the coronavirus pandemic, and warned that travel demand that is now "essentially at zero shows no sign of improving in the near term," making job cuts likely. It expects to fly fewer people during the entire month of May than it did on a single day in May of last year, Munoz and Kirby said.
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2020-04-15 00:00:00 UTC
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Warren Buffett's Moves and Big News for Fintechs
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https://www.nasdaq.com/articles/warren-buffetts-moves-and-big-news-for-fintechs-2020-04-15
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We recently learned that Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) sold shares of three of its major stock holdings. Is Warren Buffett losing faith in these investments, or is there more to the story? And we recently found out that some of our favorite fintech companies like PayPal (NASDAQ: PYPL) will be participating in the $350 billion Paycheck Protection Program.
Finally, host Jason Moser and Fool.com contributor Matt Frankel, CFP, answer some listener questions and discuss why they're watching JPMorgan Chase (NYSE: JPM) and Live Oak Bancshares (NASDAQ: LOB) this week.
To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center. To get started investing, check out our quick-start guide to investing in stocks. A full transcript follows the video.
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This video was recorded on April 13, 2020.
Jason Moser: It's Monday, April 13. I'm your host, Jason Moser, and on today's Financials show, we're going to take a look at fintech's growing role in the coronavirus response. We're going to dig into why Warren Buffett is selling stocks, and we got some listener questions to get to as well as some stocks that we're watching here for the coming week.
Joining me, as always, Certified Financial Planner Mr. Matt Frankel. Matt, did you have a good weekend?
Matt Frankel: Pretty good. I'm about a month past needing a haircut, so other than that, I'm doing all right. I'm getting close to letting my wife buzz my hair.
Moser: You know, I think we're all probably getting to that point. [laughs] I was thinking at one point, it actually crossed my mind to take my beard trimmer to my head, but then I thought, maybe that wouldn't be the best idea. I think that might result in a broken beard trimmer, so I'm just going to kind of just kind of let it go until we get back to work, you know, whenever that may be.
Frankel: Yeah, I'd appreciate any home hair-cutting tips our listeners might want to tweet at us.
Moser: Yeah, absolutely. We'll make sure to get that email address and Twitter for you out there [laughs] by the end of the show for you.
Well, let's jump into really the lead story today. This is some news that broke over the weekend, and it's not really a surprise. We were hoping this would materialize. But the news came out over the weekend that PayPal and Intuit, among others, have been approved by the small business administration to take part in the paycheck protection program, and that PPP, that program that has been one of the government's responses to really try to help small, medium-size businesses and larger businesses, I guess. The businesses that need it the most to help them cope with what has obviously been an unprecedented, at least for our lifetime, type of shutdown of the economy.
And you know, Matt, when I saw this news break over the weekend, I thought, finally, I mean, this is good. I was excited to see it. Not even from a shareholder perspective, but just from that I use these tools an awful lot, whether it's PayPal or Square, we know the benefits that these fintech companies provide to consumers from a liquidity perspective, from the perspective of access to funds, how quickly they're able to turn. So for me, personally, I saw this news, I was pretty excited about it. I don't know, what do you think about this?
Frankel: Yeah. Well, I mean, these companies have been lobbying to be included on this since pretty much before it was even signed into law. So it's a natural fit, it's kind of my take on it. It's not, they're going to be a giant money maker. I mean, I think these loans have what, 1% interest, maybe a small origination fee, they're not going to be big cash cows. I mean, banks are making a whole lot more loaning on autos and mortgages than they are on this. But it's a real natural fit.
I mean, PayPal, obviously, has a great relationship with millions of small businesses, especially those that primarily operate online. You know it's like the leading online payment company. Intuit has got QuickBooks, so they have a lot of insight into payroll figures. And the whole small business, the PPP loans are all based on payroll figures, they're meant to keep payroll going. And that's a part of the loan that could actually be forgiven.
And Square is the latest one. We're starting to hear rumbles that they're being included in this. And I checked, and it's not official news yet, but Square has a payment-protection program part of its website up already that pretty much indicates that they're going to be accepting these types of loans through Square Capital. So not only do they have the Square Capital lending division, but Square, obviously, has relations with millions of, I think, it was well over 2 million small businesses in America that use Square services. So it's a natural extension, I would say. And these companies are really good at getting money places fast, which is important.
Moser: Yeah. And to your point about Square, Jack had fired off a tweet back on April 10 that just said, "Simple and fast instructions on how to get your $1,200 stimulus check from the U.S. government. And, yes, you can deposit it directly to your cash app for instant use, no bank account needed." And we had noted on a show previously that he was getting out there on Twitter and saying, "Hey, listen, U.S., this is what we do. We're really good at this type of thing, let us help." And so, it's really nice to see, because I think you're right. I mean, on the one hand, this isn't some big cash cow for these companies. It's not like they're going to make a ton of money doing this, but that's really not the point. I mean, they're being seen as the solution. I think it's one more link in the chain toward this idea that they really are part of the future of our banking system. These are essentially banks of the future, I think, right?
Frankel: You've actually brought up a really good point that they're letting people deposit their stimulus checks right to the cash app. I think that could be the biggest benefit to Square in this. Thousands of dollars coming into the cash app right after they launch their investing platform, remember, could eventually be a nice little catalyst for that.
But, no, these companies, they need to be part of the solution. The brick-and-mortar banks are. We've talked about it. I love Bank of America, I love Wells Fargo as a business, but they're historically inefficient at getting money in the hands of consumers fast.
So these companies need to be part of the solution, because when it comes to the cash burn that some of these small businesses are seeing from keeping their payroll going, like, time is a factor here.
Moser: It is. I'm glad you said that. That's a keyword, I think, is time. And that's what this really all boils down to is, we're just trying to buy time. Because as we've talked before, what's going on right now, this isn't a fundamental flaw in the economy. What we're seeing right now is something well beyond the economy. There's a public health issue. And so, I think the response, generally speaking, has been the right. You have to shut things down to the extent that you can. And to see our government getting out there and utilizing tools they can to buy as much time as they can, because that's ultimately what we really need, it's encouraging to see.
And we've talked before about companies like PayPal and Square. And while all of these companies are withdrawing guidance and they really don't have any clarity as to how revenues are shaping up for 2020, it was a pretty safe assumption that there are going to be fewer dollars flowing through their networks for the foreseeable future. Just due to the lack of commerce, due to the fact that all of these businesses were closed and people aren't spending money quite the same way. This certainly counters that at least a little bit. It does help make up for some of those lost dollars flowing through their networks now that they're able to participate.
Frankel: Right. The whole point of the stimulus was to not necessarily replace all lost economic activity but to definitely give the economy a bigger shot in the arm than it would have otherwise, especially with the stimulus payments. But the small business lending, this is going to go to payroll, this is going to go to paying vendors to keep the business going. It's money flowing through the system.
As earnings season really kicks in over the next few weeks, we'll start to see how much this has affected PayPal, Square, and this could definitely keep money flowing through their platforms much more than otherwise would have.
Moser: Yeah. And I feel like there's some brand equity that they earned from this, probably boosts the switching costs somewhat. I think it really does, sort of, solidify these companies and their status, the role that they play in our economy going forward. I mean, the one thing -- every bull has its bear. Is there a downside to these companies doing this? Do you feel like there are risks involved here that we should be concerned with?
Frankel: Well, not really. I mean, I mentioned these aren't high-interest loans, but the flip side of that is that they are guaranteed by the Small Business Administration, which essentially takes all the risk off the lender. In this case, I don't think the lenders are retaining any of the loans. I know with the Fed's new lending initiative, has nothing to do with this, I think the banks keep 5% of the loan and sell 95% back to the Federal Reserve. There's no split in this case. The banks are just going to get some interest, they're going to maybe get a little origination fee. Not a ton of money, but not a ton of risk either.
Moser: No. So yeah, not a lot of upside, maybe not a lot of -- I mean, not a lot of obvious upside, but not a lot of obvious downside either. It does seem like just a great, sort of, long-term catalyst for these businesses, really solidifying their role for the future. And ultimately that's what investing is, investing is about how we view the future. And I think that for a lot of us, we feel like companies like Intuit and PayPal and Square and the like are going to be a big part of the future. And so, it's certainly nice to see them participating in this.
Let's take a turn here and talk a little bit about this Warren Buffett guy, because we talk a lot about Buffett and Munger and Berkshire. I mean they are our north star in a lot of ways as investors. And it's been very interesting to see, in all of this chaos, what he's been doing. Now, you published an article about this on Fool.com today, and so I want to jump into it from that perspective, because Buffett is making some interesting moves here. And there are three key moves that you were focusing here on, and it sounds like selling is the theme here for the most part.
Frankel: Right. Well, first of all, I apologize if anyone hears my dog growling in the background. These days there is someone literally walking by my house every 10 seconds.
Moser: [laughs] We're just adding the personalized touch during the coronavirus crisis.
Frankel: [laughs] But anyway, to bring back to that point, two of the three big moves Buffett has made have been sells. But before you take the word "big" there with a grain of salt. The first one, he sold shares in two of the major airline stocks. They own Delta and Southwest. And the third is he sold about $30 million worth of Bank of New York Mellon shares.
Now, let's start with the airlines. Buffett owns shares in all four airlines, and here are the percentages. He owns just under 10% of American Airlines, 9.2% of Delta, 9.9% of Southwest, and 8.8% of United. So those percentages are not accidents. It's not desirable to own more than 10% of any company; it creates more regulatory requirements. Once you own over 10%, you have -- the whole reason we knew about these transactions is only because they own more than 10% and had to disclose it. So it's not that desirable. So these were relatively small sales, and they brought both positions just under the 10% threshold. So my gut is, that's why.
On the bank side, a $30 million sale of a $3.3 billion position is nothing. [laughs] It is the first key point. And this is another kind of 10% thing. Bank of New York, Buffett didn't own more than 10% of this up till recently. They owned about 8.5%, as at the end of the year, but Bank of New York has been buying its shares back until the coronavirus crash, had been buying its shares back at kind of a breakneck pace, a rate of about 10% per year of their stock. So that 8.5% stake crept over the 10% threshold, through no fault of his own, so this looked like he was just paring back the stake a little bit to get under that. Because a bank, especially, is not very desirable to own more than 10%, unless you really want to have an active role in the business, which Buffett really doesn't. He has no desire to run Bank of America. He wants to invest in it, or Goldman Sachs or any of those for that matter.
So this is one of Buffett's bank positions. This is one of, I think, his favorite bank stocks out of all his bank positions. And like I said, he sold less than 1% of the position. And the two key dates to know with Buffett, I don't think he's selling stocks at all other than for regulatory reasons right now. The two key dates to know are the Berkshire meeting that comes up the first week of May, the first Saturday of May. When we get Berkshire's latest earnings report, we'll get a glimpse at how much that giant cash stockpile has changed.
Remember, Buffett ended the year with $128 billion worth of cash. We'll get a nice little glimpse of where that changed. And with no big purchase announcements, if that dropped to say, like, $70 billion or $80 billion, we'd pretty much know he's been buying stocks. Though, you're not going to get a glimpse at what actual stocks he bought until the second important date, which is when Berkshire's 13-F filing with the SEC comes out, which happens May the 15.
So that always happens 45 days after the end of the quarter in question. So we'll see what Buffett did in the first quarter then. So when you look at these, you'll see headlines, oh, Buffett is selling all his stocks and things like that, nothing could be further from the truth. These are minor sales, they brought all three positions down under a key threshold.
And by the way, the third thing, where I said, the third move Buffett made, he's actually raising money on the European debt markets where he can borrow for literally 0% in Europe. So even if they can earn a 2% or 3% return on that money, it's kind of a no-brainer.
So not only did Buffett have $128 billion in cash, but it looks like they're raising more money for presumably investment purposes. So we'll see when these things come up, but don't make the mistake of thinking that Buffett has given up on the stock market or thinks it's going to crash more, any of those, you know, sky-is-falling headlines you read with this.
Moser: Yeah. And for listeners who want to check that article out, we will make sure to tweet that out on the Industry Focus feed today. That was a really great take there, Matt. I appreciate that. And before we continue, a reminder for those of you looking for more stock ideas, that now is a great time to check out our Stock Advisor service, where you'll get stock recommendations from David and Tom Gardner every month, Best Buys Now, and a whole lot more.
Why is it a great time? It's a great time because if you go to IF.Fool.com, you can take advantage of a special 50% discount that we have for our Industry Focus listeners, that's right 50% discount for all of you awesome listeners, who keep chiming in there with so many kind words during this time. We really appreciate that. So make sure to check it out: IF.Fool.com.
Okay, Matt, let's jump into a few listener questions here. We had a listener that reached out to us on Twitter, we got a couple of emails that I thought would be fun to hit on today. Now, this first question we got from Derek Main, a friend of ours, he reached out on Twitter. And this is right up your alley, Matt, so I'm going to look forward to your answer here.
Derek asks, he says, "For my portfolio management class... " and Derek is at Clemson University by the way, so shout-out to Clemson out there. Even though I went to Wofford, I'm not going to hold that against you, Derek.
Frankel: I went to Carolina, which is the direct rival, so.
Moser: [laughs] And my wife went to Fermont. So we've got the bases covered. But Derek says, "For my portfolio management class, we're doing a stock-picking project, and I got assigned REITs, which is nice, because they're easy to identify, but on the other hand, they're a lot different from normal stocks. My initial screening was small- and mid-cap, with anything under 100% payout ratio, just to cut the list down, which got me to around 25. Any suggestions on what would be some of the better metrics to use for screening REITs? Once we get down to the final three, we do a thorough analysis of each one, but I'm trying to figure out the best parameters to work with. I was thinking about using either debt-to-equity or return-on-equity and return-on-assets. Any thoughts?"
So Matt, you're our REIT guy here, you study these things all the time. What do you feel like some of the better metrics there for screening REITs?
Frankel: Sure. Well, debt-to-equity is OK. My favorite debt metric with REITs is called interest coverage, meaning, how many times does the company's earnings cover its debt obligations? In other words, if it pays out, if it costs $200 million a year to make its debt payments and it's earning $1 billion, then it would be 5X interest coverage. So that's a good one to look at if you want to go the debt route.
With REITs, I like to look at 10-year dividend growth history, especially if that 10 years -- which it doesn't anymore, but, well, actually, now it will -- includes both a bull market and a bear market. You want to see how a REIT raises its dividend, which is a great indicator of financial health, if it can keep raising its dividend year after year. But you want to see that it's able to do that in every market. So a 10-year dividend growth rate is a really good one to look at.
Like I said, interest coverage is good on the debt front. And, yes, so, that's kind of where I'm at with that, he's on the right track with under 100% payout ratio. Well, because remember, REITs have high payout ratios. By definition, they pay out almost all of their income. So make sure you're looking at the FFO payout ratio, but you're a Clemson student, I'm sure you're a smart guy, so.
Moser: [laughs] Yeah. No question there. And actually, as soon as this lockdown is lifted, I'm going to get to go down to Clemson and meet with Derek and students and teachers down there and talk more about stocks. So looking forward to eventually getting back down there. But I do like that the coverage ratio, that's something that's really handy to look at with, really, any business.
And you know, we talked about this a little bit on Motley Fool Money, it's really nice to look at that coverage ratio or look at how many times you can push that interest expense into that operating income or free cash flow number. And instead of looking at the trailing 12 months, I like your idea of looking at it over a long period of time and see how it covers both ends of the spectrum there. And also thinking about it going forward, what are some of these businesses, what are their finances look like over the course of the next year or two years from now? Because there are going to be some major disruptions. And so some companies I think would be a little bit more prepared than others.
We got an email from Heidi Gilroy, and Heidi says, "Hello! I love your show." Thanks, Heidi. "Thanks for doing what you do. I've been hearing a lot about stock buybacks. Can you explain why a company might go into debt to buy back stocks and why stock buybacks in general might be seen as negative? Thanks."
And thanks again, Heidi, a very good question there. Stock buybacks, in general, are always a good question. I do really love the angle there, why companies would go into debt to do that. And how do you generally view that, Matt, if a company goes into debt to fund buybacks?
Frankel: Well, if a company goes into debt to fund buybacks, that means they really think their stock is worth more than it's trading for. If your stock is trading for $30 a share and you just know that you have $50 worth of assets for every share, it could actually make sense to -- you know, you're borrowing $10 to essentially buy $20. So that's why.
As far as why buybacks are considered negative, they're portrayed that way a lot in the news and it all comes down to, 1, are the buybacks done responsibly? Meaning, is the company spending so much on buybacks that they have no so-called emergency fund, which is what we're seeing with the airlines. That's why we're seeing so much -- I forget which one said 96% of free cash flow was used on buybacks. That's a little excessive, [laughs] so.
But if a buyback is done responsibly and for the right reasons, meaning you're using 20% of your free cash flow to buy back shares that you think are worth more than they're trading for, there's nothing inherently wrong with a buyback. That's a very common way that companies return capital to shareholders. And actually, it has some advantages over dividends, being that, if a company pays you dividends, that's taxable income. If it uses that money instead to buy back its own shares, it increases the value of your investment, but then it doesn't produce taxable income for you. So that's the big advantage of buy backs.
I don't necessarily think it's a negative, but it can be used negatively, like most financial instruments.
Moser: Well, yeah, and it's been a real headline here lately because of this perception. There is some reality to it in that some companies are obviously in very difficult financial times right now. And you can look back to, "Well, they spent all this money on share buybacks, and now they have no money to be prepared for what's going on right now." I mean, there's a greater truth to that, right.
I mean, we've even seen companies that in normal times will buy back stock with excess cash and they've suspended those programs to make sure that they can look out for the stakeholders that matter most. I think we're seeing more and more this all stakeholders' mentality. Starbucks is a great example of a company that, you know, make it fund those share buybacks if they want, but the more important and pressing issue right now is to make sure that their partners, their stakeholders and employees, are taken care of first-and-foremost, because the company ultimately doesn't exist without them. I mean, they can start that share buyback program back up whenever they want.
I've never been a fan of a company going into debt to buy back shares, because to me, it seems almost a little bit too greedy. And there's a lot of data out there that just shows that companies tend to get buybacks wrong, they do tend to buy their shares back at pretty elevated levels.
I was always a big fan of Buffett's line that he drew, I think it was 1.2X or less than book value or something like that, where he would actually consider buying back. And now they've resorted to more of Warren's and Charlie's discretion, but they've also earned that goodwill, I think, with a lot of us too.
So yeah, share buyback is a very interesting philosophical discussion. We could probably have an entire show on that and still not really cover it all. But a very good question nonetheless, Heidi. Thanks so much for asking.
And we have one more question here from Roy Klazowski. Roy says, "Hey, there. I'm looking to take a trick out of the Jason Moser playbook and taking a basket approach to the emerging-market fintech space. I already have MercadoLibre and PagSeguro. To complete my basket, I'm looking into StoneCo and was hoping to add one more. Any suggestions? Thanks a bunch. Financials Monday is a can't miss every week."
Roy, thank you for those kind words. Really appreciate you saying that. And, hey, listen, you know I love the basket approach. The war-on-cash basket has been one that has worked out very well, but this sounds like Roy is looking for an emerging-markets war-on-cash basket, Matt, and he's got a few good ideas in there. Do you have one more for him?
Frankel: I know this is kind of a boring answer, but I think if you're looking for an emerging-markets payment basket, it wouldn't be complete without either Visa or Mastercard. Both of those are really pressing the cross-border payments, especially into emerging markets.
Those are countries where most people don't have credit cards yet, things like that. When credit cards start to take over Latin America, for example, they're going to have Visa or Mastercard logos on them. So I'd say the three you have are great. I love StoneCo especially, it's one of my favorites, but I don't think that basket would be complete without a Visa or Mastercard in there.
But since you're a regular listener, I'm inclined to believe you own one of those already. Just a hunch.
Moser: Probably so. I'll throw one, sort of, unconventional answer out there, because it's not necessarily a payments provider on its own, but Shopify is really interesting in that it gives you open access to Stripe. And while Stripe is not a publicly traded company as of today, and it may be down the road, no one really knows, I think we'd all love to see it at some point, but Stripe is the backbone of Shopify's payment processing. And so owning Shopify gives you exposure to that Stripe network. And Stripe is a Square-like business in the metrics that it's turning in, in the market share, and in the neat, innovative ways that it's approaching the fintech space.
So if you want to get a little exposure to Stripe, you could do that through owning some Shopify. And I'll tell you, as a Shopify shareholder myself, I'm very happy that I own those shares. And you kind of get a two-for-one there. You get the e-commerce play and you get the payments, all rolled into one, man.
Frankel: I like that call.
Moser: All right. Well, let's wrap up this week with our Ones to Watch. And earnings season is just getting ready to kick-off here, Matt. So what's your One to Watch this week?
Frankel: Well, in the spirit of earning season, I'm looking at JPMorgan Chase. They're the first big bank to report -- tomorrow actually. So I'll be watching that one. I like JPMorgan's business a lot. They're kind of on the forefront of most major banking trends. Just recently, we saw that they're increasing their mortgage standards to I think a 700 credit score to try to get ahead of the increased risk that comes with this.
Moser: I like that move actually a lot.
Frankel: I do. It's a necessary move. I'm curious to see what they have to say on the conference call about it maybe, and how it might affect the business. We're seeing homebuilders get absolutely crushed today, and I think that's a big reason why, because the banks are tightening up their lending.
And JPMorgan just has the ability to kind of set the tone for bank earnings. So that's one I'm watching this week. It's not in my portfolio yet.
Moser: Qualify that. That's cool. Okay, well, I'm going to actually go with a smaller bank. I'm going to keep an eye out on Live Oak Bank. And that's one that we've talked about before on the show, one I know that you know very well, Matt. And we were very fortunate to interview the president of the bank there, Huntley Garriott, on the show a little while back.
And just given their tech nature and given their Small Business Administration focus, their focus on supporting the small businesses out there, I'm just going to be really fascinated. They have earnings coming up on April 22. I really can't wait to read, to hear how they're seeing the current landscape, how they're able to help, what they've got planned for the near future here to be a part of the solution, because I do feel like that's a bank that is going to be a big part of the solution as well.
And I'll tell you, Matt, Live Oak is -- I only own one small bank in Ameris Bancorp (NASDAQ: ABCB), but Live Oak is, I like that bank a lot, I've got that on my watch list, Matt. I think about adding a few shares to my portfolio on that one, but we'll see. Earnings season is going to shape up to be a doozy, I'm sure. But, Matt, we really appreciate you taking the time out this week to join. I hope you had a nice Easter weekend with your family and everybody is staying healthy.
Frankel: We did. We actually got good weather up until last night, so we were very fortunate; we were able to play outside and stuff like that.
Moser: Good deal. We'll make sure to keep you guys in mind, and we'll see you next week.
And that's going to do it for us this week, folks. Remember, you can always reach out to us on Twitter @MFIndustryFocus or drop us an email at IndustryFocus@Fool.com and let us know how things are going.
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. Thanks, as always, to our man Austin Morgan for keeping us on the rails. For Matt Frankel, I'm Jason Moser. Thanks for listening, and we'll see you next week.
Jason Moser owns shares of Ameris Bancorp, Mastercard, PayPal Holdings, Shopify, Square, Starbucks, Twitter, and Visa. Matthew Frankel, CFP owns shares of Bank of America, Berkshire Hathaway (B shares), Goldman Sachs, and Square. The Motley Fool owns shares of and recommends Berkshire Hathaway (B shares), Delta Air Lines, Intuit, Live Oak Bancshares, Mastercard, MercadoLibre, PagSeguro Digital, PayPal Holdings, Shopify, Southwest Airlines, Square, Starbucks, Twitter, and Visa. The Motley Fool owns shares of Stoneco LTD. The Motley Fool recommends Ameris Bancorp 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 September 2020 $70 puts on Square, 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.
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Finally, host Jason Moser and Fool.com contributor Matt Frankel, CFP, answer some listener questions and discuss why they're watching JPMorgan Chase (NYSE: JPM) and Live Oak Bancshares (NASDAQ: LOB) this week. And while all of these companies are withdrawing guidance and they really don't have any clarity as to how revenues are shaping up for 2020, it was a pretty safe assumption that there are going to be fewer dollars flowing through their networks for the foreseeable future. But Derek says, "For my portfolio management class, we're doing a stock-picking project, and I got assigned REITs, which is nice, because they're easy to identify, but on the other hand, they're a lot different from normal stocks.
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Finally, host Jason Moser and Fool.com contributor Matt Frankel, CFP, answer some listener questions and discuss why they're watching JPMorgan Chase (NYSE: JPM) and Live Oak Bancshares (NASDAQ: LOB) this week. The Motley Fool owns shares of and recommends Berkshire Hathaway (B shares), Delta Air Lines, Intuit, Live Oak Bancshares, Mastercard, MercadoLibre, PagSeguro Digital, PayPal Holdings, Shopify, Southwest Airlines, Square, Starbucks, Twitter, and Visa. The Motley Fool recommends Ameris Bancorp 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 September 2020 $70 puts on Square, and short June 2020 $205 calls on Berkshire Hathaway (B shares).
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They owned about 8.5%, as at the end of the year, but Bank of New York has been buying its shares back until the coronavirus crash, had been buying its shares back at kind of a breakneck pace, a rate of about 10% per year of their stock. And before we continue, a reminder for those of you looking for more stock ideas, that now is a great time to check out our Stock Advisor service, where you'll get stock recommendations from David and Tom Gardner every month, Best Buys Now, and a whole lot more. Starbucks is a great example of a company that, you know, make it fund those share buybacks if they want, but the more important and pressing issue right now is to make sure that their partners, their stakeholders and employees, are taken care of first-and-foremost, because the company ultimately doesn't exist without them.
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And I think that for a lot of us, we feel like companies like Intuit and PayPal and Square and the like are going to be a big part of the future. This is one of, I think, his favorite bank stocks out of all his bank positions. The Motley Fool owns shares of and recommends Berkshire Hathaway (B shares), Delta Air Lines, Intuit, Live Oak Bancshares, Mastercard, MercadoLibre, PagSeguro Digital, PayPal Holdings, Shopify, Southwest Airlines, Square, Starbucks, Twitter, and Visa.
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6048.0
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2020-04-15 00:00:00 UTC
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Why Airline Shares Are Higher Today
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AAL
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https://www.nasdaq.com/articles/why-airline-shares-are-higher-today-2020-04-15
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nan
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What happened
Airline stocks flew higher at the open on Wednesday after the industry secured agreements with the Treasury Department for the first tranche of bailout funds, providing reassurance to investors worried the airlines could end up bankrupt due to the COVID-19 pandemic.
Shares of JetBlue Airways (NASDAQ: JBLU) opened the day up 11.5%, while shares of American Airlines Group (NASDAQ: AAL) and United Airlines Holdings (NASDAQ: UAL) were both up more than 5% at the opening bell.
The stocks later gave back some of those gains, but the entire industry -- including Delta Air Lines (NYSE: DAL), Southwest Airlines (NYSE: LUV), Alaska Air Group (NYSE: ALK), Hawaiian Holdings (NASDAQ: HA), Allegiant Travel (NASDAQ: ALGT), and Spirit Airlines (NYSE: SAVE) -- was holding up well on a down day for broader markets.
So what
It took longer than expected and was weighed down by uncertainty, but the airlines late Tuesday secured $25 billion in payroll support authorized as part of the $2 trillion economic stimulus plan. The industry has been hit hard by the pandemic, which has caused travel demand to evaporate.
The Transportation Security Administration logged 87,534 airline passengers on Tuesday, down from 2,208,688 on the same day a year prior.
Image source: Getty Images.
Spirit Airlines was the only name on the publicly traded list not announced as a recipient of the first tranche of funding, but industry sources say the airline is in negotiations with the government and is expected to be a participant in the program.
These initial funds are the first half of a $50 billion package authorized as part of the bailout bill and were designed to support payroll and ensure no layoffs until Sept. 30 at the earliest. The airlines are also entitled to apply for a portion of the second $25 billion, which will be in the form of loans from the Treasury Department.
Now what
The bailout is not a cure-all, as no company can indefinitely survive having revenue fall 90% year over year. But the package does buy the industry time to wait for the pandemic to be contained and travel to hopefully recover. It's impossible to know when that will happen, but I believe odds are we will see travel return to at least typical recessionary levels by the fall, and therefore it is safe to invest in airline stocks.
Investors should remain cautious, however. This is an industry that has fared poorly in past downturns, and it will likely take years for traffic to return to pre-pandemic levels. For the time being, it is best to stick with the best-run companies, and those with competitive advantages in a downturn. The airlines have turned a corner, but there is still likely to be turbulence ahead.
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Lou Whiteman owns shares of Delta Air Lines and Spirit Airlines. The Motley Fool owns shares of and recommends Delta Air Lines, Southwest Airlines, and Spirit Airlines. The Motley Fool recommends Alaska Air Group, Hawaiian Holdings, and JetBlue Airways. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shares of JetBlue Airways (NASDAQ: JBLU) opened the day up 11.5%, while shares of American Airlines Group (NASDAQ: AAL) and United Airlines Holdings (NASDAQ: UAL) were both up more than 5% at the opening bell. So what It took longer than expected and was weighed down by uncertainty, but the airlines late Tuesday secured $25 billion in payroll support authorized as part of the $2 trillion economic stimulus plan. These initial funds are the first half of a $50 billion package authorized as part of the bailout bill and were designed to support payroll and ensure no layoffs until Sept. 30 at the earliest.
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Shares of JetBlue Airways (NASDAQ: JBLU) opened the day up 11.5%, while shares of American Airlines Group (NASDAQ: AAL) and United Airlines Holdings (NASDAQ: UAL) were both up more than 5% at the opening bell. The stocks later gave back some of those gains, but the entire industry -- including Delta Air Lines (NYSE: DAL), Southwest Airlines (NYSE: LUV), Alaska Air Group (NYSE: ALK), Hawaiian Holdings (NASDAQ: HA), Allegiant Travel (NASDAQ: ALGT), and Spirit Airlines (NYSE: SAVE) -- was holding up well on a down day for broader markets. The Motley Fool owns shares of and recommends Delta Air Lines, Southwest Airlines, and Spirit Airlines.
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Shares of JetBlue Airways (NASDAQ: JBLU) opened the day up 11.5%, while shares of American Airlines Group (NASDAQ: AAL) and United Airlines Holdings (NASDAQ: UAL) were both up more than 5% at the opening bell. What happened Airline stocks flew higher at the open on Wednesday after the industry secured agreements with the Treasury Department for the first tranche of bailout funds, providing reassurance to investors worried the airlines could end up bankrupt due to the COVID-19 pandemic. The stocks later gave back some of those gains, but the entire industry -- including Delta Air Lines (NYSE: DAL), Southwest Airlines (NYSE: LUV), Alaska Air Group (NYSE: ALK), Hawaiian Holdings (NASDAQ: HA), Allegiant Travel (NASDAQ: ALGT), and Spirit Airlines (NYSE: SAVE) -- was holding up well on a down day for broader markets.
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Shares of JetBlue Airways (NASDAQ: JBLU) opened the day up 11.5%, while shares of American Airlines Group (NASDAQ: AAL) and United Airlines Holdings (NASDAQ: UAL) were both up more than 5% at the opening bell. What happened Airline stocks flew higher at the open on Wednesday after the industry secured agreements with the Treasury Department for the first tranche of bailout funds, providing reassurance to investors worried the airlines could end up bankrupt due to the COVID-19 pandemic. The Motley Fool recommends Alaska Air Group, Hawaiian Holdings, and JetBlue Airways.
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6049.0
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2020-04-15 00:00:00 UTC
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Wall Street set to slump after gloomy economic data, bank earnings
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AAL
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https://www.nasdaq.com/articles/wall-street-set-to-slump-after-gloomy-economic-data-bank-earnings-2020-04-15
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nan
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nan
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For a live blog on the U.S. stock market, click LIVE/ or type LIVE/ in a news window
NY Fed Empire State manufacturing index slumps to record low
BofA, Citigroup, Goldman Sachs fall as profit slumps
J.C. Penney sinks on report it is considering bankruptcy
Record drop in March retails sales
Futures tumble: Dow 2.58%, S&P 2.96%, Nasdaq 2.07%
Adds quote, details; Updates prices
By Medha Singh
April 15 (Reuters) - Wall Street's main indexes were set to slide at the open on Wednesday, as a record drop in retail sales and dour first-quarter earnings reports lent credence to forecasts for the biggest economic slump since the 1930s.
U.S. retail sales plunged 8.7% in March, setting up consumer spending for its worst decline in decades, while a separate survey showed manufacturing activity in New York state plunged in April to its lowest in the series' history.
Bank of America BAC.N, Goldman Sachs Group Inc GS.N and Citigroup Inc C.N fell between 3.8% and 4.1% before the bell as they joined JPMorgan Chase & Co JPM.N and Wells Fargo & Co WFC.N in setting aside billions to cover potential loan losses tied to the coronavirus pandemic.
"Investors need a strong stomach to stick with stocks through some bad earnings reports in the coming days, weeks and months," said David Trainer, chief executive officer ofinvestment researchfirm New Constructs in Nashville, Tennessee.
"Earnings and coronavirus are tightly intertwined and the more progress there is on coronavirus, the sooner economic activity resumes and earnings rebound."
Analysts expect earnings for S&P 500 firms to slide 12.3% in the first quarter, while the International Monetary Fund has predicted the global economy would shrink 3% in 2020, its sharpest downturn since the Great Depression.
The benchmark S&P 500 .SPX has climbed about 30% from its March trough, lifted by a raft of U.S. monetary and fiscal stimulus and on early signs that coronavirus cases were peaking in some hotspots, but the index is still down about 16% from its record high.
The index jumped 3% on Tuesday on hopes the Trump administration could move to ease lockdowns. However, hotspot New York later sharply raised its official virus death toll to more than 10,000.
"Overall it feels like we're pricing in closer to a 'V-shaped' recovery at the moment, but it's clearly difficult to disentangle the impact that the extraordinary support from the authorities is having," said Jim Reid, strategist at Deutsche Bank.
J.C. Penney Co Inc JCP.N slumped 15.7% as sources said the retailer was exploring filing for bankruptcy protection after the virus outbreak upended its turnaround plans.
UnitedHealth Group Inc UNH.N, the biggest U.S. health insurer, reported a fall in quarterly profit, but its shares rose 1% in premarket trading as it maintained its 2020 profit outlook at a time when major companies have withdrawn forecasts due to the coronavirus pandemic.
Oil majors Exxon Mobil Corp XOM.N and Chevron Corp CVX.N slipped more than 3% as oil prices tumbled after reports suggested persistent oversupply and collapsing global demand. O/R
At 9:00 a.m. ET, Dow e-minis 1YMcv1 were down 617 points, or 2.58%. S&P 500 e-minis EScv1 were down 84.25 points, or 2.96% and Nasdaq 100 e-minis NQcv1 were down 180.25 points, or 2.07%.
In a bright spot, carriers American Airlines Group Inc AAL.O and United Airlines Holdings Inc UAL.O jumped between 5.7% and 4.5% as the U.S. Treasury Department said major passenger airlines had agreed in principle to a $25 billion rescue package.
(Reporting by Medha Singh and Akanksha Rana in Bengaluru; Editing by Sagarika Jaisinghani and Shounak Dasgupta)
((Medha.Singh@thomsonreuters.com; within U.S. +1646 223 8780, outside U.S. +91 80 6749 1130; Twitter: https://twitter.com/medhasinghs))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In a bright spot, carriers American Airlines Group Inc AAL.O and United Airlines Holdings Inc UAL.O jumped between 5.7% and 4.5% as the U.S. Treasury Department said major passenger airlines had agreed in principle to a $25 billion rescue package. Bank of America BAC.N, Goldman Sachs Group Inc GS.N and Citigroup Inc C.N fell between 3.8% and 4.1% before the bell as they joined JPMorgan Chase & Co JPM.N and Wells Fargo & Co WFC.N in setting aside billions to cover potential loan losses tied to the coronavirus pandemic. "Investors need a strong stomach to stick with stocks through some bad earnings reports in the coming days, weeks and months," said David Trainer, chief executive officer ofinvestment researchfirm New Constructs in Nashville, Tennessee.
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In a bright spot, carriers American Airlines Group Inc AAL.O and United Airlines Holdings Inc UAL.O jumped between 5.7% and 4.5% as the U.S. Treasury Department said major passenger airlines had agreed in principle to a $25 billion rescue package. For a live blog on the U.S. stock market, click LIVE/ or type LIVE/ in a news window NY Fed Empire State manufacturing index slumps to record low BofA, Citigroup, Goldman Sachs fall as profit slumps J.C. Penney sinks on report it is considering bankruptcy Record drop in March retails sales Futures tumble: Dow 2.58%, S&P 2.96%, Nasdaq 2.07% Adds quote, details; Updates prices By Medha Singh April 15 (Reuters) - Wall Street's main indexes were set to slide at the open on Wednesday, as a record drop in retail sales and dour first-quarter earnings reports lent credence to forecasts for the biggest economic slump since the 1930s. U.S. retail sales plunged 8.7% in March, setting up consumer spending for its worst decline in decades, while a separate survey showed manufacturing activity in New York state plunged in April to its lowest in the series' history.
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In a bright spot, carriers American Airlines Group Inc AAL.O and United Airlines Holdings Inc UAL.O jumped between 5.7% and 4.5% as the U.S. Treasury Department said major passenger airlines had agreed in principle to a $25 billion rescue package. For a live blog on the U.S. stock market, click LIVE/ or type LIVE/ in a news window NY Fed Empire State manufacturing index slumps to record low BofA, Citigroup, Goldman Sachs fall as profit slumps J.C. Penney sinks on report it is considering bankruptcy Record drop in March retails sales Futures tumble: Dow 2.58%, S&P 2.96%, Nasdaq 2.07% Adds quote, details; Updates prices By Medha Singh April 15 (Reuters) - Wall Street's main indexes were set to slide at the open on Wednesday, as a record drop in retail sales and dour first-quarter earnings reports lent credence to forecasts for the biggest economic slump since the 1930s. UnitedHealth Group Inc UNH.N, the biggest U.S. health insurer, reported a fall in quarterly profit, but its shares rose 1% in premarket trading as it maintained its 2020 profit outlook at a time when major companies have withdrawn forecasts due to the coronavirus pandemic.
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In a bright spot, carriers American Airlines Group Inc AAL.O and United Airlines Holdings Inc UAL.O jumped between 5.7% and 4.5% as the U.S. Treasury Department said major passenger airlines had agreed in principle to a $25 billion rescue package. For a live blog on the U.S. stock market, click LIVE/ or type LIVE/ in a news window NY Fed Empire State manufacturing index slumps to record low BofA, Citigroup, Goldman Sachs fall as profit slumps J.C. Penney sinks on report it is considering bankruptcy Record drop in March retails sales Futures tumble: Dow 2.58%, S&P 2.96%, Nasdaq 2.07% Adds quote, details; Updates prices By Medha Singh April 15 (Reuters) - Wall Street's main indexes were set to slide at the open on Wednesday, as a record drop in retail sales and dour first-quarter earnings reports lent credence to forecasts for the biggest economic slump since the 1930s. Bank of America BAC.N, Goldman Sachs Group Inc GS.N and Citigroup Inc C.N fell between 3.8% and 4.1% before the bell as they joined JPMorgan Chase & Co JPM.N and Wells Fargo & Co WFC.N in setting aside billions to cover potential loan losses tied to the coronavirus pandemic.
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6050.0
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2020-04-15 00:00:00 UTC
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US STOCKS-Oil slide dents futures as bank earnings get underway
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AAL
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https://www.nasdaq.com/articles/us-stocks-oil-slide-dents-futures-as-bank-earnings-get-underway-2020-04-15
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nan
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nan
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For a live blog on the U.S. stock market, click LIVE/ or type LIVE/ in a news window
UnitedHealth rises on profit beat, reaffirms forecast
Bank of America dips as profit slumps
J.C. Penney sinks on report it is considering bankruptcy
Retails sales data set for 8:30 a.m. ET
Futures tumble: Dow 1.47%, S&P 1.70%, Nasdaq 0.93%
Adds quote, details; Updates prices
By Medha Singh
April 15 (Reuters) - U.S. stock index futures retreated on Wednesday as another batch of dismal first-quarter earnings reports and a slide in oil prices lent credence to forecasts for the biggest economic slump since the 1930s.
Bank of America BAC.N fell 2.7% in premarket trading as it joined JPMorgan Chase & Co JPM.N and Wells Fargo & Co WFC.N in reporting a plunge in quarterly profit and setting aside billions for potential loan losses tied to the coronavirus pandemic.
Goldman Sachs Group Inc GS.N also set aside nearly $1 billion to meet future loan defaults, while Citigroup Inc's C.N loan loss reserve grew to nearly $5 billion. Their shares dropped 1.8% and 2.9%, respectively.
With the outbreak crushing business activity, analysts expect earnings for S&P 500 firms to slide 12.3% in the first quarter, while the International Monetary Fund has predicted the global economy would shrink 3% in 2020, its sharpest downturn since the Great Depression.
"Stocks have enjoyed a decent rebound over the last month so perhaps we're seeing a little risk now being taken off the table as the economic reality of the situation starts to hit home," said Craig Erlam, senior market analyst, OANDA.
The benchmark S&P 500 .SPX has climbed about 30% from its March trough, lifted by a raft of U.S. monetary and fiscal stimulus and on early signs that coronavirus cases were peaking in some hotspots, but the index is still down about 16% from its record high.
The index jumped 3% on Tuesday on hopes the Trump administration could move to ease lockdowns. However, hotspot New York later sharply raised its official virus death toll to more than 10,000.
J.C. Penney Co Inc JCP.N slumped 15% as sources said the retailer was exploring filing for bankruptcy protection after the virus outbreak upended its turnaround plans.
UnitedHealth Group Inc UNH.N, the biggest U.S. health insurer, reported a fall in quarterly profit, but its shares rose 2.6% in premarket trading as it maintained its 2020 profit outlook at a time when major companies have withdrawn forecasts due to the coronavirus pandemic.
Oil majors Exxon Mobil Corp XOM.N and Chevron Corp CVX.N slipped about 3% as oil prices tumbled after reports suggested persistent oversupply and collapsing global demand. O/R
At 7:37 a.m. ET, Dow e-minis 1YMcv1 were down 350 points, or 1.47%, S&P 500 e-minis EScv1 were down 48.25 points, or 1.7% and Nasdaq 100 e-minis NQcv1 were down 81.25 points, or 0.93%.
In a bright spot, carriers American Airlines Group Inc AAL.O and United Airlines Holdings Inc UAL.O jumped between 7% and 9% as the U.S. Treasury Department said major passenger airlines had agreed in principle to a $25 billion rescue package.
On the economic front, a Commerce Department report due at 8:30 a.m. ET is expected to show a record drop in U.S. retail sales in March, while another report is likely to show a fall in industrial production last month.
(Reporting by Medha Singh and Akanksha Rana in Bengaluru; Editing by Sagarika Jaisinghani and Shounak Dasgupta)
((Medha.Singh@thomsonreuters.com; within U.S. +1646 223 8780, outside U.S. +91 80 6749 1130; Twitter: https://twitter.com/medhasinghs))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In a bright spot, carriers American Airlines Group Inc AAL.O and United Airlines Holdings Inc UAL.O jumped between 7% and 9% as the U.S. Treasury Department said major passenger airlines had agreed in principle to a $25 billion rescue package. Bank of America BAC.N fell 2.7% in premarket trading as it joined JPMorgan Chase & Co JPM.N and Wells Fargo & Co WFC.N in reporting a plunge in quarterly profit and setting aside billions for potential loan losses tied to the coronavirus pandemic. With the outbreak crushing business activity, analysts expect earnings for S&P 500 firms to slide 12.3% in the first quarter, while the International Monetary Fund has predicted the global economy would shrink 3% in 2020, its sharpest downturn since the Great Depression.
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In a bright spot, carriers American Airlines Group Inc AAL.O and United Airlines Holdings Inc UAL.O jumped between 7% and 9% as the U.S. Treasury Department said major passenger airlines had agreed in principle to a $25 billion rescue package. For a live blog on the U.S. stock market, click LIVE/ or type LIVE/ in a news window UnitedHealth rises on profit beat, reaffirms forecast Bank of America dips as profit slumps J.C. Penney sinks on report it is considering bankruptcy Retails sales data set for 8:30 a.m. UnitedHealth Group Inc UNH.N, the biggest U.S. health insurer, reported a fall in quarterly profit, but its shares rose 2.6% in premarket trading as it maintained its 2020 profit outlook at a time when major companies have withdrawn forecasts due to the coronavirus pandemic.
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In a bright spot, carriers American Airlines Group Inc AAL.O and United Airlines Holdings Inc UAL.O jumped between 7% and 9% as the U.S. Treasury Department said major passenger airlines had agreed in principle to a $25 billion rescue package. For a live blog on the U.S. stock market, click LIVE/ or type LIVE/ in a news window UnitedHealth rises on profit beat, reaffirms forecast Bank of America dips as profit slumps J.C. Penney sinks on report it is considering bankruptcy Retails sales data set for 8:30 a.m. ET Futures tumble: Dow 1.47%, S&P 1.70%, Nasdaq 0.93% Adds quote, details; Updates prices By Medha Singh April 15 (Reuters) - U.S. stock index futures retreated on Wednesday as another batch of dismal first-quarter earnings reports and a slide in oil prices lent credence to forecasts for the biggest economic slump since the 1930s.
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In a bright spot, carriers American Airlines Group Inc AAL.O and United Airlines Holdings Inc UAL.O jumped between 7% and 9% as the U.S. Treasury Department said major passenger airlines had agreed in principle to a $25 billion rescue package. For a live blog on the U.S. stock market, click LIVE/ or type LIVE/ in a news window UnitedHealth rises on profit beat, reaffirms forecast Bank of America dips as profit slumps J.C. Penney sinks on report it is considering bankruptcy Retails sales data set for 8:30 a.m. Bank of America BAC.N fell 2.7% in premarket trading as it joined JPMorgan Chase & Co JPM.N and Wells Fargo & Co WFC.N in reporting a plunge in quarterly profit and setting aside billions for potential loan losses tied to the coronavirus pandemic.
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Best Airline Stocks to Own When the Industry Takes Off Again
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https://www.nasdaq.com/articles/best-airline-stocks-to-own-when-the-industry-takes-off-again-2020-04-15
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Few industries have suffered more in 2020 than airline stocks. The COVID-19 coronavirus outbreak has slammed the brakes on air travel, and as a result, most of America's airline carriers are down between 35% and 65% year-to-date.
But there's some hope for airlines. The $2 billion CARES Act rescue bill approved by Congress and signed by President Donald Trump last month included $25 billion in payroll cash grants and $25 billion in loans to the airline industry. And on April 14, Washington and many of the country's airlines had reportedly agreed in principle to terms of the hobbled industry's bailout. Few details were available, but one thing we do know is airlines that accept bailout funds will have to cease repurchasing shares and paying dividends through September 2021.
Dividends or not, the country's best airline stocks might be presenting a big bounce-back opportunity. Dwain Phelps, founder and CEO of Phelps Financial Group in Kennesaw, Georgia, is among those who looks for airlines to recover as soon as the medical community can devise a way to test people for the coronavirus at airports.
"I think there's room for individuals to take advantage of this because (airlines) will respond," he says. "Once we have those factors in play, I think people are going to go back to flying consistently again."
Here, we look at eight U.S. airline stocks for clues into where investors should buy this industry's deep dip. Not all airlines are created equal. And given how dire the current situation is, investors might be picking between stocks that could take off and companies that might cease to exist in a few years.
SEE ALSO: 20 Best Stocks to Buy Now for the Next Bull Market
American Airlines
Market value: $5.1 billion
Year-to-date performance: -58.4%
American Airlines (AAL, $11.95) is receiving $5.8 billion in federal bailout money, and it plans to apply for a separate federal loan of nearly $4.8 billion.
AAL entered this crisis with a rough balance sheet featuring almost $21 billion in debt versus just $3.8 billion in cash and short-term investments. And the company recently drew down $2.73 billion from three revolving credit facilities to help pay bills in the coronavirus downturn. Needless to say, the government's help was welcome.
American says it is cutting more than 60% of international travel capacity, including stopping 80% of its Pacific flights. It's also delaying the start of several new routes. Before the pandemic, American offered more than 6,800 daily flights to 365 locations in 61 countries. Analysts expect the slowdown in service to result in a $2.07-per-share loss during the first quarter, versus a 52-cent profit a year ago. The full-year 2020 picture is even worse, at a projected $12.34-per-share loss versus $4.90 earned in 2019.
American certainly isn't alone among airline stocks seeing downgrades, though analysts seem particularly bearish on AAL. Over the past three months, the stock has earned seven Sells versus five Holds and just three Buys. Particularly ugly was a rare double downgrade from JPMorgan analyst Jamie Baker, who dropped AAL from Overweight (equivalent of Buy) to Underweight (equivalent of Sell).
"In our opinion, the margin for error for American management to navigate this crisis outside of the courts is growing uncomfortably thin," he writes. And his assumptions on a potential recovery and American's debt imply a "negative equity value."
Stifel Nicolaus analyst Joseph DeNardi also recently downgraded AAL stock, from Hold to Sell. He writes that if air traffic is suspended into the summer, American could be forced to become a smaller airline with reduced capacity and routes.
SEE ALSO: 25 Dividend Stocks the Analysts Love the Most
United Airlines
Market value: $7.6 billion
Year-to-date performance: -64.9%
United Airlines (UAL, $30.90) CEO Oscar Munoz and President Scott Kirby told employees in a late-March message that the company cut April schedules by 60% and to expect deeper cuts into May and June. Before the pandemic, UAL operated about 4,900 flights per day to 362 locations.
"And, based on how doctors expect the virus to spread and how economists expect the global economy to react, we expect demand to remain suppressed for months after that, possibly into next year," the executives wrote. "We will continue to plan for the worst and hope for a faster recovery but no matter what happens, taking care of each of our people will remain our No. 1 priority."
United, which confirmed it had reached an agreement with Washington but did not release any details, also is considering selling frequent-flier miles to credit-card partner JPMorgan Chase (JPM), according to The Wall Street Journal. Sacrificing future revenue for a lesser return today is a tough pill to swallow, but that's where airline stocks are these days.
Ryan Giannotto, director of research at GraniteShares ETFs, says United was a top name in the airline space before the coronavirus hit, and that makes it a top choice to rebound.
"Going into this, they had much stronger-than-expected earnings growth," Giannoto says. "If you look at the top S&P 500 names, they were in the top quintile for expected earnings growth. Additionally, they had stronger revenue growth.
"Obviously, the coronavirus has thrown a massive wrench into all of this and now all airlines are trading like distressed assets," he says. "But those that are better positioned with stronger fundamentals may be better positioned going forward."
And broadly speaking, analysts appear to have rosier opinions about United than American, with six saying Buy, seven saying Hold and no one calling UAL a Sell over the past three months.
SEE ALSO: 25 Blue Chips With Brawny Balance Sheets
Delta Air Lines
Market value: $15.7 billion
Year-to-date performance: -58.0%
Delta Air Lines (DAL, $24.54) operated more than 5,000 flights to more than 300 destinations around the world before the coronavirus. However, it has been forced to cut 70% of its capacity and ground 600 planes. March's revenue declined by $2 billion year-over-year. The company believes second-quarter revenue will plummet 90%, and it's currently burning more than $60 million in cash every day.
It's a brutal situation - one that has DAL shares trading at their lowest levels since 2013.
Even the Oracle of Omaha himself, Warren Buffett, has seen his affinity for DAL wane. Buffett's Berkshire Hathaway (BRK.B) recently pulled back on DAL stock, cutting its stake by 18%. This comes just a few weeks after he said he wouldn't be selling airline stocks. In fact, Buffett actually added more Delta shares to the portfolio in February.
Some managers and analysts are more bullish, however.
"We're trying to look through the coronavirus issue and see what will work on the other side," says Keith Gangl, a portfolio manager at Gradient Investments. "People were flying before and people will be flying in the future. We think this is an opportunity for investors to be putting money to work."
Citi analyst Stephen Trent (Buy) agrees. He recently lowered his price target on DAL shares from $57 to $33, citing short-term weakness, However, Trent believes Delta's ability to generate cash flow in normal times should help the stock in its recovery, and that financing "could help bridge the carrier to better times."
SEE ALSO: The 25 Best Low-Fee Mutual Funds to Buy in 2020
Southwest Airlines
Market value: $17.7 billion
Year-to-date performance: -35.6%
Southwest Airlines (LUV, $34.78) was among the best airline stocks, financially speaking, heading into 2020. The company had more than $4 billion in cash and short-term investments versus just $1.3 billion in debt. No surprise, then, that LUV shares have held up far better than the competition.
Nonetheless, Southwest isn't without its issues. The company has had to cancel 1,500 daily flights and executives are looking to trim costs. Analysts expect it to lose 38 cents per share in Q1 versus a 70-cent profit last year. For 2020, they're projecting a $2.84-per-share loss versus last year's $4.45 profit.
So, the company still will accept federal bailout money - some $3.2 billion, including a 10-year, low-interest loan of $1 billion.
Of note, Berkshire also unloaded some of its Southwest stake of late - about 2.3 million shares for $74 million. But that represents a mere 4% reduction, indicating the sale might have been more geared toward slimming Berkshire's stake to below the 10% threshold that triggers increased regulatory scrutiny and unwanted headaches.
Southwest boasts a consistent track record, strong profits and a better balance sheet than its larger peers. In fact, Cowen analyst Helane Becker argues that the outbreak might be a long-term opportunity for Southwest to gobble up share once normal travel resumes. "(Southwest is) arguably the most successful airline of all time and has survived through other crises and come out stronger," she writes.
SEE ALSO: 11 Best Tech Stocks for the New Coronavirus Norm
Alaska Air Group
Market value: $3.8 billion
Year-to-date performance: -54.2%
Alaska Air Group (ALK, $31.05) is among several regional airline stocks that should receive bailout funds. Alaska Air, a large regional carrier based out of Seattle, primarily serves the western U.S. and Alaska. However, its 115 destinations now include Boston, New York, Orlando and other major cities across the U.S., Canada and Mexico.
Alaska Air disclosed in a recent regulatory filing said that demand is down 80% in April and May. The company already had announced plans to reduce its capacity by 70%.
"Given the uncertainty about when demand may bottom out and when a recovery may begin, the CARES Act payroll support grants will be critical as we weather the challenging months ahead," the company said in a statement.
Alaska Air is expected to complete its agreement with the Treasury Department this week, according to a New York Times report, but no details were immediately available about the size of the bailout. That said, Alaska was in a relatively more stable position than some of its peers, at $1.5 billion in cash versus roughly $1.3 billion in long-term debt.
Meanwhile, the pros see ALK losing $1.08 per share in Q1, versus a 17-cent profit in 2019, and $3.14 per share for all of 2020, whereas it gained $6.42 in 2019. Regardless, Alaska has received more Buys (five) than Holds (four) over the past quarter, including a pair of upgrades from Deutsche Bank and JPMorgan. The latter still sees a slow recovery, calling it a "multi-year affair, resulting in the material shedding of aircraft and headcount along the way."
SEE ALSO: 19 Dividend Aristocrats That Have Gone on Deep Discount
Spirit Airlines
Market value: $950.2 million
Year-to-date performance: -65.6%
JPMorgan's Jamie Baker had another double downgrade to dole out recently, reducing Spirit Airlines (SAVE, $13.88) from Overweight to Underweight. That can't be much of a surprise, given that the airline's own attorneys recently said the company is in "survival mode."
Spirit is a Florida-based airline known for its low-cost, no-frills approach to flying. Its business model is built on offering super-low fares (often the lowest on offer), but then squeezing as much as it can from customers in the form of fees. Want an assigned seat? That's a fee. Checking a bag? That's a fee. And if you waited to pay to check your bag at the airport, rather than when you booked, that's a larger fee. You can carry a bag onto the plane - but if it's larger than a purse or a backpack, guess what? That's a fee, too.
Spirit will even charge you $10 to print out your boarding pass at the airport.
All of this is to drive home the point that Spirit counts its pennies carefully. And that makes SAVE stock particularly perilous in a downturn that experts say could be more dangerous for the airline industry since Sept. 11, 2001.
Spirit has about $1.1 billion in cash against nearly $2 billion in debt - not treacherous, but far from ideal. Interestingly, though, Spirit wasn't included in the Treasury's list of airlines it had made an agreement with, though the company said it expects "to agree on terms soon." A sticking point might be that Spirit wants to discontinue service in several cities, requiring it to get an exemption from a rule making airlines ineligible for bailout funds if they don't maintain normal service to cities it otherwise would.
One potential glimmer of hope for SAVE shareholders: Once people begin hitting the skies once more, Spirit could see an uptick in usage by travelers looking to fly on the cheap during an economic squeeze.
SEE ALSO: 15 Dividend Cuts and Suspensions Chalked Up to the Coronavirus
JetBlue Airways
Market value: $2.5 billion
Year-to-date performance: -50.6%
JetBlue Airways (JBLU, $9.24) is among the freshest faces on this list, having started service in 1998. Before the coronavirus hit, New York-headquartered JetBlue handled about 1,000 flights a day to nearly 100 destinations. The airline has carved out a niche as a low-cost provider that nonetheless includes some perks, including personalized in-flight entertainment.
But being one of the best cheap airlines hasn't exempted it from the pandemic slowdown. JBLU chief Robin Hayes says the company is burning through $10 million per day - and that's after grounding more than 100 aircraft and cutting its schedule by 70%.
"Just a few weeks ago, we couldn't get new aircraft fast enough to hit our growth plans," Hayes wrote in an April memo. "Now, we are taking steps to sit down the aircraft we have."
JBLU had about $1.3 billion in cash versus $1.9 billion in debt at the end of 2019. It has since borrowed the full $1 billion from an existing loan facility to help it make ends meet. JetBlue told the NYT it should receive $936 million in bailout funds, $251 million of which will be in loans.
Analysts might be picking winners and losers when it comes to most airline stocks, but they're mostly staying on the sidelines with JetBlue. Seven analysts have called it a Hold over the past three months, versus just one Buy and no Sells. Several of those Holds are downgrades, however, including from JPMorgan, Stifel Nicolaus and UBS.
SEE ALSO: 10 Facts You Must Know About Recessions
Allegiant Travel
Market value: $1.3 billion
Year-to-date performance: -54.6%
Last up is Allegiant Travel (ALGT, $79.08), which operates as Allegiant Air - a low-cost airline based in Las Vegas that serves 125 destinations. Like Spirit, Allegiant makes its living by keeping fares low and heavily charging for baggage and other fees.
The No. 9 air carrier in the U.S., Allegiant recently withdrew its full-year 2020 guidance after disclosing that it expects revenue for March to be 40% to 45% lower than last year, and that it expects to cut airline capacity by as much as 90% in April and May.
"The outbreak of coronavirus is having an impact the likes of which we've never seen in the travel industry. Even as a domestic carrier, to have zero demand across almost every community we serve is truly unsettling," Allegiant chairman and CEO Maurice Gallagher wrote in a release. "With the situation changing daily, we are taking proactive steps to ensure operations continue, protect the livelihoods of our team members, and put us in the best possible position to serve our customers when demand for travel returns."
Allegiant, which has applied for bailout funds, is bleeding $2 million a day. That's worrisome given the company's balance sheet, which pits $458 million in cash and short-term investments against $1.1 billion in long-term debt.
Interestingly, ALGT has been mostly immune to analysts' waning optimism for airline stocks. For instance, while Stifel Nicolaus and Deutsche Bank were downgrading several other carriers, they maintained their Buy calls on Allegiant. In all, the stock has four Buys, versus one Hold and one Sell.
Patrick Sanders was long DAL as of this writing.
SEE ALSO: The 12 Best ETFs to Battle a Bear Market
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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SEE ALSO: 20 Best Stocks to Buy Now for the Next Bull Market American Airlines Market value: $5.1 billion Year-to-date performance: -58.4% American Airlines (AAL, $11.95) is receiving $5.8 billion in federal bailout money, and it plans to apply for a separate federal loan of nearly $4.8 billion. AAL entered this crisis with a rough balance sheet featuring almost $21 billion in debt versus just $3.8 billion in cash and short-term investments. American certainly isn't alone among airline stocks seeing downgrades, though analysts seem particularly bearish on AAL.
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SEE ALSO: 20 Best Stocks to Buy Now for the Next Bull Market American Airlines Market value: $5.1 billion Year-to-date performance: -58.4% American Airlines (AAL, $11.95) is receiving $5.8 billion in federal bailout money, and it plans to apply for a separate federal loan of nearly $4.8 billion. AAL entered this crisis with a rough balance sheet featuring almost $21 billion in debt versus just $3.8 billion in cash and short-term investments. American certainly isn't alone among airline stocks seeing downgrades, though analysts seem particularly bearish on AAL.
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SEE ALSO: 20 Best Stocks to Buy Now for the Next Bull Market American Airlines Market value: $5.1 billion Year-to-date performance: -58.4% American Airlines (AAL, $11.95) is receiving $5.8 billion in federal bailout money, and it plans to apply for a separate federal loan of nearly $4.8 billion. AAL entered this crisis with a rough balance sheet featuring almost $21 billion in debt versus just $3.8 billion in cash and short-term investments. American certainly isn't alone among airline stocks seeing downgrades, though analysts seem particularly bearish on AAL.
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SEE ALSO: 20 Best Stocks to Buy Now for the Next Bull Market American Airlines Market value: $5.1 billion Year-to-date performance: -58.4% American Airlines (AAL, $11.95) is receiving $5.8 billion in federal bailout money, and it plans to apply for a separate federal loan of nearly $4.8 billion. AAL entered this crisis with a rough balance sheet featuring almost $21 billion in debt versus just $3.8 billion in cash and short-term investments. American certainly isn't alone among airline stocks seeing downgrades, though analysts seem particularly bearish on AAL.
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Major Airlines Reach Deal With US Treasury On Payroll Aid
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https://www.nasdaq.com/articles/major-airlines-reach-deal-with-us-treasury-on-payroll-aid-2020-04-15
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(RTTNews) - Major US airlines agreed to general terms with the U.S. Treasury regarding their participation in the Payroll Support Program that will prevent layoffs in the airline industry hit by the COVID-19 pandemic.
President Donald Trump last month signed the $2 trillion coronavirus economic stimulus bill that reportedly includes $25 billion in direct aid to passenger airlines.
A top economic research firm Compass Lexecon concluded that emergency relief grants for airline industry will drive up to $27 billion of direct economic impact in just the next six months, and $25 billion more over the next two years.
The US airlines today agreed to the Treasury's conditions such as prohibitions against involuntary furloughs and reductions in employee pay rates and benefits through September 30, 2020; the elimination of share repurchases and dividends until September 30, 2021; and limits on executive compensation until March 24, 2022.
U.S. Treasury Secretary Steven Mnuchin said, "... This is an important CARES Act program that will support American workers and help preserve the strategic importance of the airline industry while allowing for appropriate compensation to the taxpayers."
The Secretary said that Alaska Airlines, Allegiant Air, American Airlines, Delta Air Lines, Frontier Airlines, Hawaiian Airlines, JetBlue Airways, United Airlines, SkyWest Airlines, and Southwest Airlines plan to participate in the Payroll Support Program.
The Secretary also said conversations are continuing with other airlines regarding their potential participation. He is also working to review and approve applications for smaller passenger air carriers as quickly as possible and will provide further guidance for cargo carriers and contractors very soon.
American Airlines Group Inc. announced that the U.S. Treasury has approved $5.8 billion in financial assistance. The funds will come in two forms: a direct grant of $4.1 billion, and a low-interest rate loan of $1.7 billion. In addition, American expects to separately apply for a loan from the U.S. Treasury of about $4.75 billion.
Southwest Airlines said its expected disbursements under the program total more than $3.2 billion, consisting of more than $2.3 billion in direct payroll support and a nearly $1 billion unsecured term loan.
The loan is expected to have a 10-year term with low interest rates and may be repaid at any time prior to maturity at par. The loan is expected to include about 2.6 million warrants issued to the U.S. Department of Treasury.
Delta Air Lines said its agreement with Treasury includes $5.4 billion from the payroll support program. The payment includes an unsecured 10-year low-interest loan of $1.6 billion, and Delta will provide the government with warrants to acquire about 1 percent of Delta stock at $24.39 per share over five years.
Alaska Airlines and Horizon Air agreed to terms with the U.S. Treasury regarding their participation in the Payroll Support Program. The program will provide Alaska and Horizon with a total of $992 million, to be used exclusively for the cost of employee payroll and benefits.
Of the $992 million in funding to be disbursed, $267 million will be in the form of a loan and must be repaid to the government. Additionally, the Treasury will receive the right to buy 847,000 non-voting shares of Alaska Air Group at a price of $31.61 per share.
Separately, the U.S. Department of Transportation announced the award of about $10 billion to commercial and general aviation airports from the newly created coronavirus relief fund.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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President Donald Trump last month signed the $2 trillion coronavirus economic stimulus bill that reportedly includes $25 billion in direct aid to passenger airlines. Alaska Airlines and Horizon Air agreed to terms with the U.S. Treasury regarding their participation in the Payroll Support Program. Separately, the U.S. Department of Transportation announced the award of about $10 billion to commercial and general aviation airports from the newly created coronavirus relief fund.
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The Secretary said that Alaska Airlines, Allegiant Air, American Airlines, Delta Air Lines, Frontier Airlines, Hawaiian Airlines, JetBlue Airways, United Airlines, SkyWest Airlines, and Southwest Airlines plan to participate in the Payroll Support Program. The payment includes an unsecured 10-year low-interest loan of $1.6 billion, and Delta will provide the government with warrants to acquire about 1 percent of Delta stock at $24.39 per share over five years. Alaska Airlines and Horizon Air agreed to terms with the U.S. Treasury regarding their participation in the Payroll Support Program.
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(RTTNews) - Major US airlines agreed to general terms with the U.S. Treasury regarding their participation in the Payroll Support Program that will prevent layoffs in the airline industry hit by the COVID-19 pandemic. The Secretary said that Alaska Airlines, Allegiant Air, American Airlines, Delta Air Lines, Frontier Airlines, Hawaiian Airlines, JetBlue Airways, United Airlines, SkyWest Airlines, and Southwest Airlines plan to participate in the Payroll Support Program. Southwest Airlines said its expected disbursements under the program total more than $3.2 billion, consisting of more than $2.3 billion in direct payroll support and a nearly $1 billion unsecured term loan.
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The funds will come in two forms: a direct grant of $4.1 billion, and a low-interest rate loan of $1.7 billion. Southwest Airlines said its expected disbursements under the program total more than $3.2 billion, consisting of more than $2.3 billion in direct payroll support and a nearly $1 billion unsecured term loan. Alaska Airlines and Horizon Air agreed to terms with the U.S. Treasury regarding their participation in the Payroll Support Program.
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With a Bailout Agreement in Place, Is It Safe to Buy Airline Stocks?
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https://www.nasdaq.com/articles/with-a-bailout-agreement-in-place-is-it-safe-to-buy-airline-stocks-2020-04-15
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The airlines secured the first tranche of their bailout late Tuesday, with a group of 10 public and privately held carriers agreeing to terms to receive some of the $25 billion in payroll support authorized under the $2 trillion Coronavirus Aid, Relief, and Economic Security Act (CARES Act).
The deals came after a week of negotiations over how the government would be compensated for its largesse, and includes the airlines issuing warrants totaling between 1% and 3% of their total equity. They also pledged to do no layoffs before Sept. 30, an important factor for the government, given the mounting jobless claims nationally.
"We welcome the news that a number of major airlines intend to participate in the Payroll Support Program," Treasury Secretary Steven T. Mnuchin said in a statement. "This is an important CARES Act program that will support American workers and help preserve the strategic importance of the airline industry while allowing for appropriate compensation to the taxpayers."
Image source: Getty Images.
The bailout provides additional runway to allow the industry to take off once the COVID-19 pandemic has subsided, and it eliminates the near-term bankruptcy risk. But does it make the sector attractive for investors?
What the airlines got
The airline sector has been among the hardest hit by the pandemic, which has caused travel demand to evaporate overnight. The industry has done what it can to cut costs, canceling tens of thousands of flights and grounding thousands of planes. But with revenue expected to fall by upward of 90% year over year, no amount of cutting is enough to stem the cash bleed.
Some airline stocks lost more than half their value in March, with investors fearing bankruptcies were inevitable. The industry came into the pandemic relatively healthy, but if nothing else, a significant number of layoffs and furloughs would have been required absent government assistance.
The amounts requested totaled more than the $25 billion allotted, meaning no carrier got enough to fully cover payroll. It appears airlines were granted funds to cover about three-quarters of their actual payroll in the second and third quarters of 2019.
"This is an essential step, but just one of many that will get us through the next several months," Delta CEO Ed Bastian said in a memo to employees. "The funding, along with self-help measures we have taken, will prevent furloughs and pay rate reductions through the end of September, despite the 95 percent drop we've seen in passenger traffic."
A sampling of what individual companies are getting:
Delta Air Lines (NYSE: DAL) will receive $3.8 billion in direct support and a $1.6 billion loan.
American Airlines Group (NASDAQ: AAL) will receive $4.1 billion in direct support and a $1.7 billion loan.
Southwest Airlines (NYSE: LUV) will receive $3.2 billion in direct support and a $1 billion loan.
Other public companies receiving assistance include United Airlines Holdings (NASDAQ: UAL), Alaska Air Group (NYSE: ALK), Allegiant Travel (NASDAQ: ALGT), Hawaiian Holdings (NASDAQ: HA), and JetBlue Airways (NASDAQ: JBLU). The major noticeable absence from the list was Spirit Airlines (NYSE: SAVE), but a source said Tuesday night the airline was expected to agree to a relief package in the days to come.
Is it time to climb aboard?
For investors, it is important to understand what this bailout package is, and what it is not. The funding buys the industry time, in the hope that the pandemic will recede and travel patterns begin to normalize. But it only buys them a limited amount of time, and carriers including United have been blunt in saying that if traffic does not return by Sept. 30, there will be further cuts.
At best, it appears we are likely to emerge from the national shelter-in-place in a recession, and airlines in years past have not fared well during economic downturns.
I'm optimistic the airlines can survive without major liquidity issues, but pessimistic we'll see a quick recovery. While it is impossible to know what the future holds, investors should brace for a multiyear recovery and airlines needing at least two years (and perhaps longer) to return to pre-pandemic flying levels. For the next few years, expect to see smaller fleets and fewer employees.
Image source: Getty Images.
If so, it is safe to buy airline stocks, but best to focus on the best-run companies and those with competitive advantages. My picks right now would be Delta, Alaska, and Southwest, with Delta the most attractive of the three based on a balance of financial strength and how far the stock has fallen.
I'd avoid airlines like Hawaiian due to its niche network and reliance on higher-cost trans-Pacific flights, and JetBlue due to its strategy to attract premium travelers. Both are well-run companies that hopefully will be fine, but the risks are higher as you move down the spectrum. American and United can both match the scale advantages of Delta, but don't have the track record of success and don't trade at a sufficient discount to justify the added risk.
It's safe to board the airlines, but tread carefully, buckle up, and expect a long flight ahead.
10 stocks we like better than JetBlue Airways
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Lou Whiteman owns shares of Delta Air Lines and Spirit Airlines. The Motley Fool owns shares of and recommends Delta Air Lines, Southwest Airlines, and Spirit Airlines. The Motley Fool recommends Alaska Air Group, Hawaiian Holdings, and JetBlue Airways. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines Group (NASDAQ: AAL) will receive $4.1 billion in direct support and a $1.7 billion loan. "We welcome the news that a number of major airlines intend to participate in the Payroll Support Program," Treasury Secretary Steven T. Mnuchin said in a statement. "The funding, along with self-help measures we have taken, will prevent furloughs and pay rate reductions through the end of September, despite the 95 percent drop we've seen in passenger traffic."
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American Airlines Group (NASDAQ: AAL) will receive $4.1 billion in direct support and a $1.7 billion loan. Other public companies receiving assistance include United Airlines Holdings (NASDAQ: UAL), Alaska Air Group (NYSE: ALK), Allegiant Travel (NASDAQ: ALGT), Hawaiian Holdings (NASDAQ: HA), and JetBlue Airways (NASDAQ: JBLU). The Motley Fool owns shares of and recommends Delta Air Lines, Southwest Airlines, and Spirit Airlines.
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American Airlines Group (NASDAQ: AAL) will receive $4.1 billion in direct support and a $1.7 billion loan. Other public companies receiving assistance include United Airlines Holdings (NASDAQ: UAL), Alaska Air Group (NYSE: ALK), Allegiant Travel (NASDAQ: ALGT), Hawaiian Holdings (NASDAQ: HA), and JetBlue Airways (NASDAQ: JBLU). See the 10 stocks *Stock Advisor returns as of March 18, 2020 Lou Whiteman owns shares of Delta Air Lines and Spirit Airlines.
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American Airlines Group (NASDAQ: AAL) will receive $4.1 billion in direct support and a $1.7 billion loan. The amounts requested totaled more than the $25 billion allotted, meaning no carrier got enough to fully cover payroll. That's right -- they think these 10 stocks are even better buys.
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6054.0
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2020-04-14 00:00:00 UTC
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UK shares slide on coronavirus worries, BAT slumps
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AAL
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https://www.nasdaq.com/articles/uk-shares-slide-on-coronavirus-worries-bat-slumps-2020-04-14
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nan
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nan
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By Devik Jain and Sruthi Shankar
April 14 (Reuters) - UK stock markets fell on Monday as shares in British American Tobacco slumped on report of a U.S. criminal probe, while signs that Britain will remain under lockdown for a longer period dented the mood.
The blue-chip FTSE 100 index .FTSE fell 0.5% as the UK government signalled there would be no easing of lockdown measures this week after the death toll from COVID-19 infection surpassed 11,000 on Monday.
A newspaper reported Britain's finance minister as saying the economy could shrink by up to 30% this quarter.
The exporter-heavy FTSE 100 was dragged lower by a stronger pound, while stock markets elsewhere in Europe extended last week's strong run on signs some countries were letting businesses get back to work. .EU
"While other European markets put their best foot forward amid signs coronavirus cases in countries like Germany, Italy and Spain are hitting a plateau, sentiment remains fragile as investors brace for the corporate first-quarter earnings season to get underway," Russ Mould, investment director at AJ Bell, wrote in a client note.
Investors are awaiting earnings outlook from big U.S. banks JPMorgan Chase & Co JPM.N and Wells Fargo & Co WFC.N later in the day.
Companies listed on the pan-European STOXX 600 .STOXX are expected to report an average 30.2% decline in earnings in the second quarter, according to Refinitiv data.
UK shares logged their best week since 2009 on Friday, driven by hopes of the coronavirus cases easing in hard-hit parts of Europe and the United States.
The FTSE 100 has recovered nearly 19% from its March 16 low, but is still down about 24% from its January peak.
BAT shares BATS.L shed 5.9% after a newspaper report that the company is under a criminal investigation by U.S. regulators over suspected sanctions-busting.
Cruise operator Carnival PlC CCL.L and hotel operator Intercontinental Hotel IHG.L fell more than 5% as they battle with plunging travel demand and worldwide lockdown.
The domestically focused midcap index .FTMC fell 1.2%, with cinema operator Cineworld CINE.L tumbling 12% after a report its lenders were exploring legal challenge to block the takeover of Canadian rival Cineplex.
Pub chain Mitchells & Butlers MAB.L dropped 6.5% after saying it had avoided a technical debt default until May 15, as it braced for a longer lockdown.
Among gainers, AstraZeneca's AZN.L shares surged 5.6% after saying it would start a clinical trial to assess the potential of cancer drug Calquence in the treatment of the exaggerated immune response associated with COVID-19 infection in severely ill patients.
Shares in China-exposed miners Rio Tinto RIO.L, Anglo American AAL.L and BHP Group BHPB.L rose between 0.3% and 1.3% after data showed China's exports and imports slowed their declines in March after plunging in the previous two months.
(Reporting by Devik Jain and Sruthi Shankar in Bengaluru; Editing by Arun Koyyur)
((Devik.Jain@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 6182 2062; ;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shares in China-exposed miners Rio Tinto RIO.L, Anglo American AAL.L and BHP Group BHPB.L rose between 0.3% and 1.3% after data showed China's exports and imports slowed their declines in March after plunging in the previous two months. By Devik Jain and Sruthi Shankar April 14 (Reuters) - UK stock markets fell on Monday as shares in British American Tobacco slumped on report of a U.S. criminal probe, while signs that Britain will remain under lockdown for a longer period dented the mood. .EU "While other European markets put their best foot forward amid signs coronavirus cases in countries like Germany, Italy and Spain are hitting a plateau, sentiment remains fragile as investors brace for the corporate first-quarter earnings season to get underway," Russ Mould, investment director at AJ Bell, wrote in a client note.
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Shares in China-exposed miners Rio Tinto RIO.L, Anglo American AAL.L and BHP Group BHPB.L rose between 0.3% and 1.3% after data showed China's exports and imports slowed their declines in March after plunging in the previous two months. By Devik Jain and Sruthi Shankar April 14 (Reuters) - UK stock markets fell on Monday as shares in British American Tobacco slumped on report of a U.S. criminal probe, while signs that Britain will remain under lockdown for a longer period dented the mood. .EU "While other European markets put their best foot forward amid signs coronavirus cases in countries like Germany, Italy and Spain are hitting a plateau, sentiment remains fragile as investors brace for the corporate first-quarter earnings season to get underway," Russ Mould, investment director at AJ Bell, wrote in a client note.
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Shares in China-exposed miners Rio Tinto RIO.L, Anglo American AAL.L and BHP Group BHPB.L rose between 0.3% and 1.3% after data showed China's exports and imports slowed their declines in March after plunging in the previous two months. By Devik Jain and Sruthi Shankar April 14 (Reuters) - UK stock markets fell on Monday as shares in British American Tobacco slumped on report of a U.S. criminal probe, while signs that Britain will remain under lockdown for a longer period dented the mood. The blue-chip FTSE 100 index .FTSE fell 0.5% as the UK government signalled there would be no easing of lockdown measures this week after the death toll from COVID-19 infection surpassed 11,000 on Monday.
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Shares in China-exposed miners Rio Tinto RIO.L, Anglo American AAL.L and BHP Group BHPB.L rose between 0.3% and 1.3% after data showed China's exports and imports slowed their declines in March after plunging in the previous two months. By Devik Jain and Sruthi Shankar April 14 (Reuters) - UK stock markets fell on Monday as shares in British American Tobacco slumped on report of a U.S. criminal probe, while signs that Britain will remain under lockdown for a longer period dented the mood. The blue-chip FTSE 100 index .FTSE fell 0.5% as the UK government signalled there would be no easing of lockdown measures this week after the death toll from COVID-19 infection surpassed 11,000 on Monday.
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6055.0
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2020-04-14 00:00:00 UTC
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U.S. Treasury, airlines reach agreement in principle on payroll aid -sources
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AAL
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https://www.nasdaq.com/articles/u.s.-treasury-airlines-reach-agreement-in-principle-on-payroll-aid-sources-2020-04-14
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nan
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By Tracy Rucinski and David Shepardson
April 14 (Reuters) - The U.S. Treasury Department and passenger airlines have reached an agreement in principle on a $25 billion payroll support package meant to help airlines weather the economic impact of the coronavirus on travel demand, sources with knowledge of the matter said on Tuesday.
Announcements on the agreement are expected later on Tuesday, they said.
Under the terms laid out by Treasury officials last week, the government would receive repayment on 30% of the funds awarded to large carriers and warrants equal to 10% of the loan amount.
The six largest U.S. airlines - American Airlines Group Inc AAL.O, United Airlines Holdings Inc UAL.O, Delta Air Lines Inc DAL.N, Southwest Airlines Co LUV.N, JetBlue Airways Corp JBLU.O and Alaska Airlines ALK.N - are all expected to accept, the sources said.
Based on wages and benefits paid in the second and third quarters of 2019, American and United were each eligible for about $6 billion, Delta about $5.6 billion, Southwest about $4 billion, and JetBlue and Alaska roughly $1.2 billion each.
U.S. passenger airlines can also apply for a separate $25 billion loan scheme under the government's $2.3 trillion stimulus package, known as the CARES Act, and had lobbied for the payroll relief portion to be free cash.
The statute gave Treasury the authority to demand compensation for the grants, but did not require it. According to the terms, companies receiving funds cannot lay off employees before Sept. 30 or change collective bargaining agreements.
When the law was approved last month, major airlines said the money would protect jobs through September but warned that the continued challenges facing the industry would require more action, including some tough decisions in the months ahead if demand is slow to recover.
Estimated global airline losses from the coronavirus pandemic have climbed to $314 billion, 25% more than previously forecast, the International Air Transport Association (IATA) said on Tuesday, owing to the severity of the economic downturn and a slower than previously expected reopening of international routes.
Alexandre de Juniac, the Geneva-based organization's CEO, said leaving the middle seat vacant was among likely conditions for a resumption of air travel to be discussed with governments in a series of coordinated meetings around the world.
(Reporting by Tracy Rucinski in Chicago and David Shepardson in Washington Editing by Matthew Lewis)
((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.
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The six largest U.S. airlines - American Airlines Group Inc AAL.O, United Airlines Holdings Inc UAL.O, Delta Air Lines Inc DAL.N, Southwest Airlines Co LUV.N, JetBlue Airways Corp JBLU.O and Alaska Airlines ALK.N - are all expected to accept, the sources said. Under the terms laid out by Treasury officials last week, the government would receive repayment on 30% of the funds awarded to large carriers and warrants equal to 10% of the loan amount. U.S. passenger airlines can also apply for a separate $25 billion loan scheme under the government's $2.3 trillion stimulus package, known as the CARES Act, and had lobbied for the payroll relief portion to be free cash.
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The six largest U.S. airlines - American Airlines Group Inc AAL.O, United Airlines Holdings Inc UAL.O, Delta Air Lines Inc DAL.N, Southwest Airlines Co LUV.N, JetBlue Airways Corp JBLU.O and Alaska Airlines ALK.N - are all expected to accept, the sources said. By Tracy Rucinski and David Shepardson April 14 (Reuters) - The U.S. Treasury Department and passenger airlines have reached an agreement in principle on a $25 billion payroll support package meant to help airlines weather the economic impact of the coronavirus on travel demand, sources with knowledge of the matter said on Tuesday. Based on wages and benefits paid in the second and third quarters of 2019, American and United were each eligible for about $6 billion, Delta about $5.6 billion, Southwest about $4 billion, and JetBlue and Alaska roughly $1.2 billion each.
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The six largest U.S. airlines - American Airlines Group Inc AAL.O, United Airlines Holdings Inc UAL.O, Delta Air Lines Inc DAL.N, Southwest Airlines Co LUV.N, JetBlue Airways Corp JBLU.O and Alaska Airlines ALK.N - are all expected to accept, the sources said. By Tracy Rucinski and David Shepardson April 14 (Reuters) - The U.S. Treasury Department and passenger airlines have reached an agreement in principle on a $25 billion payroll support package meant to help airlines weather the economic impact of the coronavirus on travel demand, sources with knowledge of the matter said on Tuesday. Estimated global airline losses from the coronavirus pandemic have climbed to $314 billion, 25% more than previously forecast, the International Air Transport Association (IATA) said on Tuesday, owing to the severity of the economic downturn and a slower than previously expected reopening of international routes.
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The six largest U.S. airlines - American Airlines Group Inc AAL.O, United Airlines Holdings Inc UAL.O, Delta Air Lines Inc DAL.N, Southwest Airlines Co LUV.N, JetBlue Airways Corp JBLU.O and Alaska Airlines ALK.N - are all expected to accept, the sources said. By Tracy Rucinski and David Shepardson April 14 (Reuters) - The U.S. Treasury Department and passenger airlines have reached an agreement in principle on a $25 billion payroll support package meant to help airlines weather the economic impact of the coronavirus on travel demand, sources with knowledge of the matter said on Tuesday. Announcements on the agreement are expected later on Tuesday, they said.
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6056.0
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2020-04-14 00:00:00 UTC
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Boeing 737 MAX cancellations pile up during production halt
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AAL
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https://www.nasdaq.com/articles/boeing-737-max-cancellations-pile-up-during-production-halt-2020-04-14
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nan
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nan
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By David Shepardson and Rachit Vats
April 14 (Reuters) - Boeing Co BA.N on Tuesday reported another 75 cancellations for its 737 MAX jetliner in March, as the coronavirus crisis worsened disruptions from the grounding of its best-selling jet.
The U.S. planemaker posted a total of 150 MAX cancellations in March, including 75 previously reported from Irish leasing company Avolon. New cancellations came from buyers including 34 of 135 aircraft ordered by Brazil's GOL GOLL4.SA.
The cancellations come as Boeing seeks to untangle delivery commitments after halting output of the MAX in January, following delays in returning it to service.
Boeing, facing a 13-month-old freeze on deliveries of the MAX and now disruption to deliveries of larger planes due to the coronavirus epidemic, said it had delivered 50 planes in the first quarter, barely a third of the 149 seen a year earlier.
That was the lowest since 1984 for the first quarter.
The company posted orders in March for 12 787 Dreamliners, one 767 freighter and 18 pre-MAX versions of the 737 for the P-8 maritime patrol program. For the first quarter, it posted 49 new orders, or a negative total of 147 after cancellations.
After further accounting adjustments representing jets ordered in previous years but now unlikely to be delivered, Boeing's adjusted net orders sank to a negative 307 airplanes.
The pandemic has forced Boeing and European rival Airbus AIR.PA to cut production in the face of plunging demand, cash problems at airlines and logistical difficulties in delivering aircraft.
Boeing halted production of the MAX in January and remains in talks with regulators seeking approval to return the plane to service. Last week, Boeing said it was addressing two new software issues with the MAX flight control computer.
U.S. airlines, suffering an unprecedented downturn in demand due to the coronavirus, are close to accepting the terms of a $25 billion offer for government payroll aid.
(Reporting by Rachit Vats, David Shepardson and Tim Hepher; Editing by Maju Samuel)
((Rachit.Vats@tr.com; within U.S. +1 646 223 8780, outside U.S. +91 80 61822828; Reuters Messaging: rachit.vats.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By David Shepardson and Rachit Vats April 14 (Reuters) - Boeing Co BA.N on Tuesday reported another 75 cancellations for its 737 MAX jetliner in March, as the coronavirus crisis worsened disruptions from the grounding of its best-selling jet. The pandemic has forced Boeing and European rival Airbus AIR.PA to cut production in the face of plunging demand, cash problems at airlines and logistical difficulties in delivering aircraft. U.S. airlines, suffering an unprecedented downturn in demand due to the coronavirus, are close to accepting the terms of a $25 billion offer for government payroll aid.
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By David Shepardson and Rachit Vats April 14 (Reuters) - Boeing Co BA.N on Tuesday reported another 75 cancellations for its 737 MAX jetliner in March, as the coronavirus crisis worsened disruptions from the grounding of its best-selling jet. The U.S. planemaker posted a total of 150 MAX cancellations in March, including 75 previously reported from Irish leasing company Avolon. (Reporting by Rachit Vats, David Shepardson and Tim Hepher; Editing by Maju Samuel) ((Rachit.Vats@tr.com; within U.S. +1 646 223 8780, outside U.S. +91 80 61822828; Reuters Messaging: rachit.vats.thomsonreuters.com@reuters.net)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By David Shepardson and Rachit Vats April 14 (Reuters) - Boeing Co BA.N on Tuesday reported another 75 cancellations for its 737 MAX jetliner in March, as the coronavirus crisis worsened disruptions from the grounding of its best-selling jet. Boeing, facing a 13-month-old freeze on deliveries of the MAX and now disruption to deliveries of larger planes due to the coronavirus epidemic, said it had delivered 50 planes in the first quarter, barely a third of the 149 seen a year earlier. After further accounting adjustments representing jets ordered in previous years but now unlikely to be delivered, Boeing's adjusted net orders sank to a negative 307 airplanes.
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By David Shepardson and Rachit Vats April 14 (Reuters) - Boeing Co BA.N on Tuesday reported another 75 cancellations for its 737 MAX jetliner in March, as the coronavirus crisis worsened disruptions from the grounding of its best-selling jet. The U.S. planemaker posted a total of 150 MAX cancellations in March, including 75 previously reported from Irish leasing company Avolon. For the first quarter, it posted 49 new orders, or a negative total of 147 after cancellations.
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6057.0
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2020-04-14 00:00:00 UTC
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Boeing 737 MAX cancellations mount amid production halt
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AAL
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https://www.nasdaq.com/articles/boeing-737-max-cancellations-mount-amid-production-halt-2020-04-14
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nan
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nan
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April 14 (Reuters) - Boeing Co BA.N on Tuesday reported another 75 cancellations for its 737 MAX jetliner in March, as the coronavirus crisis worsens disruptions from the grounding of its best-selling jet.
The U.S. planemaker posted a total of 150 MAX cancellations in March, including 75 previously reported from Irish leasing company Avolon.
New cancellations came from buyers including 34 of 135 aircraft ordered by Brazil's GOL GOLL4.SA.
The cancellations come as Boeing seeks to untangle delivery commitments after halting output of the MAX in January, following delays in returning it to service.
Boeing, facing a 13-month-old freeze on deliveries of the MAX and now disruption to deliveries of larger planes due to the coronavirus epidemic, said it had delivered 50 planes in the first quarter, nearly a third of the 149 seen a year earlier.
The company posted orders in March for 12 787 Dreamliners, one 767 freighter and 18 pre-MAX versions of the 737 for the P-8 maritime patrol program. For the first quarter, it posted 49 new orders, or a negative total of 147 after cancellations.
After further accounting adjustments representing jets ordered in previous years but now unlikely to be delivered, Boeing's adjusted net orders sank to a negative 307 airplanes.
(Reporting by Rachit Vats, David Shepardson and Tim Hepher; Editing by Maju Samuel)
((Rachit.Vats@tr.com; within U.S. +1 646 223 8780, outside U.S. +91 80 61822828; Reuters Messaging: rachit.vats.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
April 14 (Reuters) - Boeing Co BA.N on Tuesday reported another 75 cancellations for its 737 MAX jetliner in March, as the coronavirus crisis worsens disruptions from the grounding of its best-selling jet. The U.S. planemaker posted a total of 150 MAX cancellations in March, including 75 previously reported from Irish leasing company Avolon. The cancellations come as Boeing seeks to untangle delivery commitments after halting output of the MAX in January, following delays in returning it to service.
|
April 14 (Reuters) - Boeing Co BA.N on Tuesday reported another 75 cancellations for its 737 MAX jetliner in March, as the coronavirus crisis worsens disruptions from the grounding of its best-selling jet. The U.S. planemaker posted a total of 150 MAX cancellations in March, including 75 previously reported from Irish leasing company Avolon. After further accounting adjustments representing jets ordered in previous years but now unlikely to be delivered, Boeing's adjusted net orders sank to a negative 307 airplanes.
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April 14 (Reuters) - Boeing Co BA.N on Tuesday reported another 75 cancellations for its 737 MAX jetliner in March, as the coronavirus crisis worsens disruptions from the grounding of its best-selling jet. The U.S. planemaker posted a total of 150 MAX cancellations in March, including 75 previously reported from Irish leasing company Avolon. After further accounting adjustments representing jets ordered in previous years but now unlikely to be delivered, Boeing's adjusted net orders sank to a negative 307 airplanes.
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The U.S. planemaker posted a total of 150 MAX cancellations in March, including 75 previously reported from Irish leasing company Avolon. Boeing, facing a 13-month-old freeze on deliveries of the MAX and now disruption to deliveries of larger planes due to the coronavirus epidemic, said it had delivered 50 planes in the first quarter, nearly a third of the 149 seen a year earlier. For the first quarter, it posted 49 new orders, or a negative total of 147 after cancellations.
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6058.0
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2020-04-14 00:00:00 UTC
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BUZZ-U.S. STOCKS ON THE MOVE-U.S. airlines, banks, General Electric, Tesla, J&J
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AAL
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https://www.nasdaq.com/articles/buzz-u.s.-stocks-on-the-move-u.s.-airlines-banks-general-electric-tesla-jj-2020-04-14
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nan
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Eikon search string for individual stock moves: STXBZ
The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi
The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh
Wall Street rose more than 2% on Tuesday on signs some economies would ease strict coronavirus-induced lockdowns, with investors also looking at quarterly earnings from JPMorgan and Johnson & Johnson for clues on the business hit from the outbreak. .N
At 11:12 ET, the Dow Jones Industrial Average .DJI was up 1.39% at 23,715.73. The S&P 500 .SPX was up 2.30% at 2,825.12 and the Nasdaq Composite .IXIC was up 2.99% at 8,437.235. The top three S&P 500 .PG.INX percentage gainers: ** Royal Caribbean Cruises Ltd , up 8.5% ** Fastenal Co , up 7.5% ** Carnival Corp , up 6.7% The top three S&P 500 .PL.INX percentage losers: ** Apache Corp , down 7.4% ** Devon Energy , down 7.2% ** Regions Financial Corp , down 6.2% The top two NYSE .PG.N percentage gainers: ** North Shore Global Uranium Mining ETF , up 36.3% ** Protalix Biotherapeutics , up 31.1% The top three NYSE .PL.N percentage losers: ** CorEnergy Infrastructure Trust Inc , down 38.4% ** Independent Contract Drilling , down 19.2% ** Mesabi Trust , down 11.9% The top three Nasdaq .PG.O percentage gainers: ** Aikido Pharma Inc , up 205.2% ** Sonnet Biotherapeutics Holdings Inc , up 151.8% ** Marin Software Inc , up 130.8% The top three Nasdaq .PL.O percentage losers: ** Neurobo Pharmaceuticals Inc , down 43.1% ** Esports Entertaiment Group Inc , down 23.5% ** Scworx Corp , down 22.9% ** Roku ROKU.O: up 7.9%
BUZZ- Roku attracting millions of more eyeballs amid pandemic, shares jump - ** General Electric GE.N: down 2.1%
BUZZ-JPM's Tusa says GE most expensive value trap, cuts PT to street-low ** JPMorgan Chase & Co JPM.N: down 4.2% ** Goldman Sachs GS.N: down 2.1% ** Wells Fargo & Co WFC.N: down 5.2% ** Morgan Stanley MS.N: down 2.5%
BUZZ-Wall St banks trade steady; JPM sees modest economic recovery in H2 ** Johnson & Johnson JNJ.N: up 5.0%
BUZZ- Rises on Q1 beat; lowers guidance on COVID-19 impact ** Tesla TSLA.O: up 10.2%
BUZZ-Tesla surges 112% in 18 sessions to cross $700, again ** Apple Inc AAPL.O: up 3.7%
BUZZ-China iPhone shipments rebound in March ** Axsome AXSM.O: up 8.4%
BUZZ-Cowen says Axsome to provide much long-term shareholder value - ** American Airlines Group Inc AAL.O: up 2.6% ** United Airlines Holdings Inc UAL.O: up 5.4% ** Delta Air Lines Inc DAL.N: up 4.1%
** BUZZ-U.S. airlines close to accepting govt aid plan, shares rise ** Oneok Inc OKE.N: up 0.2%
BUZZ-Rises after Jefferies upgrades on positive risk-reward opportunity ** MEI Pharma MEIP.O: up 53.8%
BUZZ-Surges on licensing deal for cancer drug, gets $100 mln upfront ** Marriott International Inc MAR.O: up 1.5%
BUZZ-Marriott International jumps on improvement in China bookings ** Aldeyra Therapeutics Inc ALDX.O: up 15.7%
BUZZ-Aldeyra: Jumps on plans to test drug on COVID-19 patients ** Dick's Sporting Goods DKS.N: down 1.6%
BUZZ-Dick's Sporting Goods: Falls on $500 mln notes offering ** Borr Drilling BORR.N: down 29.1%
BUZZ-U.S. shares of Norway's Borr Drilling slump on contract terminations ** Biocept Inc BIOC.O: down 25.2%
BUZZ-Biocept: Plunges on discounted $10.3 mln stock deal ** GSX Techedu Inc GSX.N: down 4.0%
BUZZ-GSX Techedu hits 3-month low after bearish note from short seller
The 11 major S&P 500 sectors:
Communication Services
.SPLRCL
up 1.83%
Consumer Discretionary
.SPLRCD
up 2.64%
Consumer Staples
.SPLRCS
up 2.73%
Energy
.SPNY
down 0.61%
Financial
.SPSY
down 1.04%
Health
.SPXHC
up 2.40%
Industrial
.SPLRCI
up 1.00%
Information Technology
.SPLRCT
up 2.56%
Materials
.SPLRCM
up 0.36%
Real Estate
.SPLRCR
up 2.74%
Utilities
.SPLRCU
up 1.73%
(Compiled by Arundhati Sarkar and Shanti S Nair in Bengaluru)
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The top three S&P 500 .PG.INX percentage gainers: ** Royal Caribbean Cruises Ltd , up 8.5% ** Fastenal Co , up 7.5% ** Carnival Corp , up 6.7% The top three S&P 500 .PL.INX percentage losers: ** Apache Corp , down 7.4% ** Devon Energy , down 7.2% ** Regions Financial Corp , down 6.2% The top two NYSE .PG.N percentage gainers: ** North Shore Global Uranium Mining ETF , up 36.3% ** Protalix Biotherapeutics , up 31.1% The top three NYSE .PL.N percentage losers: ** CorEnergy Infrastructure Trust Inc , down 38.4% ** Independent Contract Drilling , down 19.2% ** Mesabi Trust , down 11.9% The top three Nasdaq .PG.O percentage gainers: ** Aikido Pharma Inc , up 205.2% ** Sonnet Biotherapeutics Holdings Inc , up 151.8% ** Marin Software Inc , up 130.8% The top three Nasdaq .PL.O percentage losers: ** Neurobo Pharmaceuticals Inc , down 43.1% ** Esports Entertaiment Group Inc , down 23.5% ** Scworx Corp , down 22.9% ** Roku ROKU.O: up 7.9% BUZZ- Roku attracting millions of more eyeballs amid pandemic, shares jump - ** General Electric GE.N: down 2.1% BUZZ-JPM's Tusa says GE most expensive value trap, cuts PT to street-low ** JPMorgan Chase & Co JPM.N: down 4.2% ** Goldman Sachs GS.N: down 2.1% ** Wells Fargo & Co WFC.N: down 5.2% ** Morgan Stanley MS.N: down 2.5% BUZZ-Wall St banks trade steady; JPM sees modest economic recovery in H2 ** Johnson & Johnson JNJ.N: up 5.0% BUZZ- Rises on Q1 beat; lowers guidance on COVID-19 impact ** Tesla TSLA.O: up 10.2% BUZZ-Tesla surges 112% in 18 sessions to cross $700, again ** Apple Inc AAPL.O: up 3.7% BUZZ-China iPhone shipments rebound in March ** Axsome AXSM.O: up 8.4% BUZZ-Cowen says Axsome to provide much long-term shareholder value - ** American Airlines Group Inc AAL.O: up 2.6% ** United Airlines Holdings Inc UAL.O: up 5.4% ** Delta Air Lines Inc DAL.N: up 4.1% ** BUZZ-U.S. airlines close to accepting govt aid plan, shares rise ** Oneok Inc OKE.N: up 0.2% BUZZ-Rises after Jefferies upgrades on positive risk-reward opportunity ** MEI Pharma MEIP.O: up 53.8% BUZZ-Surges on licensing deal for cancer drug, gets $100 mln upfront ** Marriott International Inc MAR.O: up 1.5% BUZZ-Marriott International jumps on improvement in China bookings ** Aldeyra Therapeutics Inc ALDX.O: up 15.7% BUZZ-Aldeyra: Jumps on plans to test drug on COVID-19 patients ** Dick's Sporting Goods DKS.N: down 1.6% BUZZ-Dick's Sporting Goods: Falls on $500 mln notes offering ** Borr Drilling BORR.N: down 29.1% BUZZ-U.S. shares of Norway's Borr Drilling slump on contract terminations ** Biocept Inc BIOC.O: down 25.2% BUZZ-Biocept: Plunges on discounted $10.3 mln stock deal ** GSX Techedu Inc GSX.N: down 4.0% BUZZ-GSX Techedu hits 3-month low after bearish note from short seller The 11 major S&P 500 sectors: Communication Services Eikon search string for individual stock moves: STXBZ The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh Wall Street rose more than 2% on Tuesday on signs some economies would ease strict coronavirus-induced lockdowns, with investors also looking at quarterly earnings from JPMorgan and Johnson & Johnson for clues on the business hit from the outbreak. up 1.73% (Compiled by Arundhati Sarkar and Shanti S Nair in Bengaluru) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The top three S&P 500 .PG.INX percentage gainers: ** Royal Caribbean Cruises Ltd , up 8.5% ** Fastenal Co , up 7.5% ** Carnival Corp , up 6.7% The top three S&P 500 .PL.INX percentage losers: ** Apache Corp , down 7.4% ** Devon Energy , down 7.2% ** Regions Financial Corp , down 6.2% The top two NYSE .PG.N percentage gainers: ** North Shore Global Uranium Mining ETF , up 36.3% ** Protalix Biotherapeutics , up 31.1% The top three NYSE .PL.N percentage losers: ** CorEnergy Infrastructure Trust Inc , down 38.4% ** Independent Contract Drilling , down 19.2% ** Mesabi Trust , down 11.9% The top three Nasdaq .PG.O percentage gainers: ** Aikido Pharma Inc , up 205.2% ** Sonnet Biotherapeutics Holdings Inc , up 151.8% ** Marin Software Inc , up 130.8% The top three Nasdaq .PL.O percentage losers: ** Neurobo Pharmaceuticals Inc , down 43.1% ** Esports Entertaiment Group Inc , down 23.5% ** Scworx Corp , down 22.9% ** Roku ROKU.O: up 7.9% BUZZ- Roku attracting millions of more eyeballs amid pandemic, shares jump - ** General Electric GE.N: down 2.1% BUZZ-JPM's Tusa says GE most expensive value trap, cuts PT to street-low ** JPMorgan Chase & Co JPM.N: down 4.2% ** Goldman Sachs GS.N: down 2.1% ** Wells Fargo & Co WFC.N: down 5.2% ** Morgan Stanley MS.N: down 2.5% BUZZ-Wall St banks trade steady; JPM sees modest economic recovery in H2 ** Johnson & Johnson JNJ.N: up 5.0% BUZZ- Rises on Q1 beat; lowers guidance on COVID-19 impact ** Tesla TSLA.O: up 10.2% BUZZ-Tesla surges 112% in 18 sessions to cross $700, again ** Apple Inc AAPL.O: up 3.7% BUZZ-China iPhone shipments rebound in March ** Axsome AXSM.O: up 8.4% BUZZ-Cowen says Axsome to provide much long-term shareholder value - ** American Airlines Group Inc AAL.O: up 2.6% ** United Airlines Holdings Inc UAL.O: up 5.4% ** Delta Air Lines Inc DAL.N: up 4.1% ** BUZZ-U.S. airlines close to accepting govt aid plan, shares rise ** Oneok Inc OKE.N: up 0.2% BUZZ-Rises after Jefferies upgrades on positive risk-reward opportunity ** MEI Pharma MEIP.O: up 53.8% BUZZ-Surges on licensing deal for cancer drug, gets $100 mln upfront ** Marriott International Inc MAR.O: up 1.5% BUZZ-Marriott International jumps on improvement in China bookings ** Aldeyra Therapeutics Inc ALDX.O: up 15.7% BUZZ-Aldeyra: Jumps on plans to test drug on COVID-19 patients ** Dick's Sporting Goods DKS.N: down 1.6% BUZZ-Dick's Sporting Goods: Falls on $500 mln notes offering ** Borr Drilling BORR.N: down 29.1% BUZZ-U.S. shares of Norway's Borr Drilling slump on contract terminations ** Biocept Inc BIOC.O: down 25.2% BUZZ-Biocept: Plunges on discounted $10.3 mln stock deal ** GSX Techedu Inc GSX.N: down 4.0% BUZZ-GSX Techedu hits 3-month low after bearish note from short seller The 11 major S&P 500 sectors: Communication Services Eikon search string for individual stock moves: STXBZ The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh Wall Street rose more than 2% on Tuesday on signs some economies would ease strict coronavirus-induced lockdowns, with investors also looking at quarterly earnings from JPMorgan and Johnson & Johnson for clues on the business hit from the outbreak. up 1.73% (Compiled by Arundhati Sarkar and Shanti S Nair in Bengaluru) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The top three S&P 500 .PG.INX percentage gainers: ** Royal Caribbean Cruises Ltd , up 8.5% ** Fastenal Co , up 7.5% ** Carnival Corp , up 6.7% The top three S&P 500 .PL.INX percentage losers: ** Apache Corp , down 7.4% ** Devon Energy , down 7.2% ** Regions Financial Corp , down 6.2% The top two NYSE .PG.N percentage gainers: ** North Shore Global Uranium Mining ETF , up 36.3% ** Protalix Biotherapeutics , up 31.1% The top three NYSE .PL.N percentage losers: ** CorEnergy Infrastructure Trust Inc , down 38.4% ** Independent Contract Drilling , down 19.2% ** Mesabi Trust , down 11.9% The top three Nasdaq .PG.O percentage gainers: ** Aikido Pharma Inc , up 205.2% ** Sonnet Biotherapeutics Holdings Inc , up 151.8% ** Marin Software Inc , up 130.8% The top three Nasdaq .PL.O percentage losers: ** Neurobo Pharmaceuticals Inc , down 43.1% ** Esports Entertaiment Group Inc , down 23.5% ** Scworx Corp , down 22.9% ** Roku ROKU.O: up 7.9% BUZZ- Roku attracting millions of more eyeballs amid pandemic, shares jump - ** General Electric GE.N: down 2.1% BUZZ-JPM's Tusa says GE most expensive value trap, cuts PT to street-low ** JPMorgan Chase & Co JPM.N: down 4.2% ** Goldman Sachs GS.N: down 2.1% ** Wells Fargo & Co WFC.N: down 5.2% ** Morgan Stanley MS.N: down 2.5% BUZZ-Wall St banks trade steady; JPM sees modest economic recovery in H2 ** Johnson & Johnson JNJ.N: up 5.0% BUZZ- Rises on Q1 beat; lowers guidance on COVID-19 impact ** Tesla TSLA.O: up 10.2% BUZZ-Tesla surges 112% in 18 sessions to cross $700, again ** Apple Inc AAPL.O: up 3.7% BUZZ-China iPhone shipments rebound in March ** Axsome AXSM.O: up 8.4% BUZZ-Cowen says Axsome to provide much long-term shareholder value - ** American Airlines Group Inc AAL.O: up 2.6% ** United Airlines Holdings Inc UAL.O: up 5.4% ** Delta Air Lines Inc DAL.N: up 4.1% ** BUZZ-U.S. airlines close to accepting govt aid plan, shares rise ** Oneok Inc OKE.N: up 0.2% BUZZ-Rises after Jefferies upgrades on positive risk-reward opportunity ** MEI Pharma MEIP.O: up 53.8% BUZZ-Surges on licensing deal for cancer drug, gets $100 mln upfront ** Marriott International Inc MAR.O: up 1.5% BUZZ-Marriott International jumps on improvement in China bookings ** Aldeyra Therapeutics Inc ALDX.O: up 15.7% BUZZ-Aldeyra: Jumps on plans to test drug on COVID-19 patients ** Dick's Sporting Goods DKS.N: down 1.6% BUZZ-Dick's Sporting Goods: Falls on $500 mln notes offering ** Borr Drilling BORR.N: down 29.1% BUZZ-U.S. shares of Norway's Borr Drilling slump on contract terminations ** Biocept Inc BIOC.O: down 25.2% BUZZ-Biocept: Plunges on discounted $10.3 mln stock deal ** GSX Techedu Inc GSX.N: down 4.0% BUZZ-GSX Techedu hits 3-month low after bearish note from short seller The 11 major S&P 500 sectors: Communication Services .N At 11:12 ET, the Dow Jones Industrial Average .DJI was up 1.39% at 23,715.73. up 1.83% Consumer Discretionary
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The top three S&P 500 .PG.INX percentage gainers: ** Royal Caribbean Cruises Ltd , up 8.5% ** Fastenal Co , up 7.5% ** Carnival Corp , up 6.7% The top three S&P 500 .PL.INX percentage losers: ** Apache Corp , down 7.4% ** Devon Energy , down 7.2% ** Regions Financial Corp , down 6.2% The top two NYSE .PG.N percentage gainers: ** North Shore Global Uranium Mining ETF , up 36.3% ** Protalix Biotherapeutics , up 31.1% The top three NYSE .PL.N percentage losers: ** CorEnergy Infrastructure Trust Inc , down 38.4% ** Independent Contract Drilling , down 19.2% ** Mesabi Trust , down 11.9% The top three Nasdaq .PG.O percentage gainers: ** Aikido Pharma Inc , up 205.2% ** Sonnet Biotherapeutics Holdings Inc , up 151.8% ** Marin Software Inc , up 130.8% The top three Nasdaq .PL.O percentage losers: ** Neurobo Pharmaceuticals Inc , down 43.1% ** Esports Entertaiment Group Inc , down 23.5% ** Scworx Corp , down 22.9% ** Roku ROKU.O: up 7.9% BUZZ- Roku attracting millions of more eyeballs amid pandemic, shares jump - ** General Electric GE.N: down 2.1% BUZZ-JPM's Tusa says GE most expensive value trap, cuts PT to street-low ** JPMorgan Chase & Co JPM.N: down 4.2% ** Goldman Sachs GS.N: down 2.1% ** Wells Fargo & Co WFC.N: down 5.2% ** Morgan Stanley MS.N: down 2.5% BUZZ-Wall St banks trade steady; JPM sees modest economic recovery in H2 ** Johnson & Johnson JNJ.N: up 5.0% BUZZ- Rises on Q1 beat; lowers guidance on COVID-19 impact ** Tesla TSLA.O: up 10.2% BUZZ-Tesla surges 112% in 18 sessions to cross $700, again ** Apple Inc AAPL.O: up 3.7% BUZZ-China iPhone shipments rebound in March ** Axsome AXSM.O: up 8.4% BUZZ-Cowen says Axsome to provide much long-term shareholder value - ** American Airlines Group Inc AAL.O: up 2.6% ** United Airlines Holdings Inc UAL.O: up 5.4% ** Delta Air Lines Inc DAL.N: up 4.1% ** BUZZ-U.S. airlines close to accepting govt aid plan, shares rise ** Oneok Inc OKE.N: up 0.2% BUZZ-Rises after Jefferies upgrades on positive risk-reward opportunity ** MEI Pharma MEIP.O: up 53.8% BUZZ-Surges on licensing deal for cancer drug, gets $100 mln upfront ** Marriott International Inc MAR.O: up 1.5% BUZZ-Marriott International jumps on improvement in China bookings ** Aldeyra Therapeutics Inc ALDX.O: up 15.7% BUZZ-Aldeyra: Jumps on plans to test drug on COVID-19 patients ** Dick's Sporting Goods DKS.N: down 1.6% BUZZ-Dick's Sporting Goods: Falls on $500 mln notes offering ** Borr Drilling BORR.N: down 29.1% BUZZ-U.S. shares of Norway's Borr Drilling slump on contract terminations ** Biocept Inc BIOC.O: down 25.2% BUZZ-Biocept: Plunges on discounted $10.3 mln stock deal ** GSX Techedu Inc GSX.N: down 4.0% BUZZ-GSX Techedu hits 3-month low after bearish note from short seller The 11 major S&P 500 sectors: Communication Services Eikon search string for individual stock moves: STXBZ The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh Wall Street rose more than 2% on Tuesday on signs some economies would ease strict coronavirus-induced lockdowns, with investors also looking at quarterly earnings from JPMorgan and Johnson & Johnson for clues on the business hit from the outbreak. .N At 11:12 ET, the Dow Jones Industrial Average .DJI was up 1.39% at 23,715.73.
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6059.0
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2020-04-14 00:00:00 UTC
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Wall Street set for gains as JPMorgan, J&J kick off earnings
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AAL
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https://www.nasdaq.com/articles/wall-street-set-for-gains-as-jpmorgan-jj-kick-off-earnings-2020-04-14
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nan
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nan
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For a live blog on the U.S. stock market, click LIVE/ or type LIVE/ in a news window
JPMorgan, Wells Fargo quarterly profits slump
J&J beats profit estimates, boosts quarterly dividend
China's exports, imports shrink less-than-expected
Tesla climbs on Credit Suisse upgrade
Futures jump: Dow 1.54%, S&P 1.54%, Nasdaq 1.88%
Adds quote, details; Updates prices
By Medha Singh
April 14 (Reuters) - Wall Street's main indexes were set to open higher on Tuesday as the quarterly earnings season began in earnest with JPMorgan Chase and Johnson & Johnson offering the first glimpse of the coronavirus outbreak's impact on corporate America.
Profits at JPMorgan Chase & Co JPM.N and Wells Fargo & Co WFC.N plunged in the first quarter, as both banks set aside billions of dollars to cover potential loan-losses from the pandemic. L4N29I2DC
However, their shares rose between 1.3% and 1.5% in premarket trading after plunging 29% and 41% respectively, so far this year, as the health crisis crushed business activity and halted deal-making.
Coronavirus-fueled uncertainty also forced Johnson & Johnson JNJ.N to cut its 2020 adjusted profit forecast, but its shares rose 3.5% as it boosted its quarterly dividend, signaling financial stability at a time when a slate of blue-chip firms have suspended dividends to shore up cash reserves.
Analysts expect a 10.2% slide in earnings in the first quarter and a 22.4% slump in the second, according to IBES estimates from Refinitiv.
"It should come as no surprise that earnings are going to be hit very hard in 2020," said Fiona O'Neill, deputy head of equities research at Fidelity International in London.
"But it would be wrong to focus too much on 2020. Instead, we must look to forecast where earnings will go in 2021 and beyond so that we can continue to identify those companies that are going to emerge from this as winners."
The benchmark S&P 500 .SPX index has recouped about 26% in the past month, powered by historic fiscal and monetary support and early signs the virus outbreak was peaking in some U.S. hot spots, but remains about 22% below its February all-time high.
President Donald Trump said late on Monday his administration was close to completing a plan to re-open the economy, but some state governors said the decision to re-start businesses lies with them.
"The 'turned the corner' narrative has a strong immediacy, but there remain creeping concerns about a slow economic re-opening and lasting changes to consumer spending," said Yung-Yu Ma, chief investment strategist at BMO Wealth Management in Portland, Oregon.
Meanwhile, data showed China's exports and imports shrank less than expected in March as factories restarted production, but analysts warned a sure-footed recovery was months away.
At 8:52 a.m. ET, Dow e-minis 1YMcv1 were up 360 points, or 1.54%, S&P 500 e-minis EScv1 were up 42.5 points, or 1.54% and Nasdaq 100 e-minis NQcv1 were up 156.75 points, or 1.88%.
American Airlines Group Inc AAL.O and United Airlines Holdings Inc UAL.O rose more than 4% as sources said some large U.S. passenger airlines were close to accepting the terms of a $25 billion offer for government payroll aid.
Tesla Inc TSLA.O jumped 7.8% after brokerage Credit Suisse upgraded the electric carmaker's stock to "neutral" from "underperform".
(Reporting by Medha Singh in Bengaluru; Editing by Sagarika Jaisinghani and Shounak Dasgupta)
((Medha.Singh@thomsonreuters.com; within U.S. +1646 223 8780, outside U.S. +91 80 6749 1130; Twitter: https://twitter.com/medhasinghs))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines Group Inc AAL.O and United Airlines Holdings Inc UAL.O rose more than 4% as sources said some large U.S. passenger airlines were close to accepting the terms of a $25 billion offer for government payroll aid. The benchmark S&P 500 .SPX index has recouped about 26% in the past month, powered by historic fiscal and monetary support and early signs the virus outbreak was peaking in some U.S. hot spots, but remains about 22% below its February all-time high. President Donald Trump said late on Monday his administration was close to completing a plan to re-open the economy, but some state governors said the decision to re-start businesses lies with them.
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American Airlines Group Inc AAL.O and United Airlines Holdings Inc UAL.O rose more than 4% as sources said some large U.S. passenger airlines were close to accepting the terms of a $25 billion offer for government payroll aid. For a live blog on the U.S. stock market, click LIVE/ or type LIVE/ in a news window JPMorgan, Wells Fargo quarterly profits slump J&J beats profit estimates, boosts quarterly dividend China's exports, imports shrink less-than-expected Tesla climbs on Credit Suisse upgrade Futures jump: Dow 1.54%, S&P 1.54%, Nasdaq 1.88% Adds quote, details; Updates prices By Medha Singh April 14 (Reuters) - Wall Street's main indexes were set to open higher on Tuesday as the quarterly earnings season began in earnest with JPMorgan Chase and Johnson & Johnson offering the first glimpse of the coronavirus outbreak's impact on corporate America. Profits at JPMorgan Chase & Co JPM.N and Wells Fargo & Co WFC.N plunged in the first quarter, as both banks set aside billions of dollars to cover potential loan-losses from the pandemic.
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American Airlines Group Inc AAL.O and United Airlines Holdings Inc UAL.O rose more than 4% as sources said some large U.S. passenger airlines were close to accepting the terms of a $25 billion offer for government payroll aid. For a live blog on the U.S. stock market, click LIVE/ or type LIVE/ in a news window JPMorgan, Wells Fargo quarterly profits slump J&J beats profit estimates, boosts quarterly dividend China's exports, imports shrink less-than-expected Tesla climbs on Credit Suisse upgrade Futures jump: Dow 1.54%, S&P 1.54%, Nasdaq 1.88% Adds quote, details; Updates prices By Medha Singh April 14 (Reuters) - Wall Street's main indexes were set to open higher on Tuesday as the quarterly earnings season began in earnest with JPMorgan Chase and Johnson & Johnson offering the first glimpse of the coronavirus outbreak's impact on corporate America. Coronavirus-fueled uncertainty also forced Johnson & Johnson JNJ.N to cut its 2020 adjusted profit forecast, but its shares rose 3.5% as it boosted its quarterly dividend, signaling financial stability at a time when a slate of blue-chip firms have suspended dividends to shore up cash reserves.
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American Airlines Group Inc AAL.O and United Airlines Holdings Inc UAL.O rose more than 4% as sources said some large U.S. passenger airlines were close to accepting the terms of a $25 billion offer for government payroll aid. For a live blog on the U.S. stock market, click LIVE/ or type LIVE/ in a news window JPMorgan, Wells Fargo quarterly profits slump J&J beats profit estimates, boosts quarterly dividend China's exports, imports shrink less-than-expected Tesla climbs on Credit Suisse upgrade Futures jump: Dow 1.54%, S&P 1.54%, Nasdaq 1.88% Adds quote, details; Updates prices By Medha Singh April 14 (Reuters) - Wall Street's main indexes were set to open higher on Tuesday as the quarterly earnings season began in earnest with JPMorgan Chase and Johnson & Johnson offering the first glimpse of the coronavirus outbreak's impact on corporate America. L4N29I2DC However, their shares rose between 1.3% and 1.5% in premarket trading after plunging 29% and 41% respectively, so far this year, as the health crisis crushed business activity and halted deal-making.
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6060.0
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2020-04-14 00:00:00 UTC
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US STOCKS-China data lifts futures as JPMorgan, J&J kick off earnings
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AAL
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https://www.nasdaq.com/articles/us-stocks-china-data-lifts-futures-as-jpmorgan-jj-kick-off-earnings-2020-04-14
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nan
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nan
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For a live blog on the U.S. stock market, click LIVE/ or type LIVE/ in a news window
JPMorgan quarterly profit slumps
J&J beats profit estimates, but lowers 2020 forecast
China's exports, imports shrink less than expected
Tesla climbs on Credit Suisse upgrade
Futures rise: Dow 1.21%, S&P 1.00%, Nasdaq 1.33%
Adds quote, details; Updates prices
By Medha Singh
April 14 (Reuters) - U.S. stock index futures gained 1% on Tuesday on better-than-expected trade data from China and signs some economies were preparing to ease lockdowns, even as the first batch of earnings reports underlined the hit from the coronavirus outbreak.
JPMorgan Chase & Co JPM.N reported a first-quarter profit that slumped by more than two-thirds as it boosted reserves to cover potential loan defaults due to the pandemic. Its shares, which have fallen 29% this year, were up 2.4% in premarket trading. L4N29I2DC
Coronavirus-fueled uncertainty forced Johnson & Johnson JNJ.N to cut its 2020 adjusted profit forecast, but its shares rose 3% as its first-quarter profit beat estimates on higher sales of its cancer drugs and self-care products.
Analysts expect a corporate recession for S&P 500 firms in 2020, with a 10.2% slide in earnings in the first quarter and a 22.4% slump in the second, according to IBES estimates from Refinitiv.
"It should come as no surprise that earnings are going to be hit very hard in 2020," said Fiona O'Neill, deputy head of equities research at Fidelity International.
"But it would be wrong to focus too much on 2020. Instead, we must look to forecast where earnings will go in 2021 and beyond so that we can continue to identify those companies that are going to emerge from this as winners."
The benchmark S&P 500 .SPX index has clawed back about 26% in the past month, powered by historic fiscal and monetary support and early signs the virus outbreak was peaking in some U.S. hot spots, but remains about 22% below its February all-time high.
President Donald Trump said late on Monday his administration was close to completing a plan to re-open the economy but some state governors said the decision to re-start businesses lies with them.
Meanwhile, data showed China's exports and imports shrank less than expected in March as factories restarted production, but analysts warned a sure-footed recovery was months away.
At 6:58 a.m. ET, Dow e-minis 1YMcv1 were up 281 points, or 1.21%, S&P 500 e-minis EScv1 were up 27.5 points, or 1% and Nasdaq 100 e-minis NQcv1 were up 111 points, or 1.33%.
American Airlines Group Inc AAL.O and United Airlines Holdings Inc UAL.O rose more than 4% as sources said some large U.S. passenger airlines were close to accepting the terms of a $25 billion offer for government payroll aid.
Tesla Inc TSLA.O jumped 6.3% after brokerage Credit Suisse upgraded the electric carmaker's stock to "neutral" from "underperform".
Wells Fargo & Co WFC.N rose 1.8% ahead of first-quarter results due at 8 a.m. ET.
(Reporting by Medha Singh in Bengaluru; Editing by Sagarika Jaisinghani and Shounak Dasgupta)
((Medha.Singh@thomsonreuters.com; within U.S. +1646 223 8780, outside U.S. +91 80 6749 1130; Twitter: https://twitter.com/medhasinghs))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines Group Inc AAL.O and United Airlines Holdings Inc UAL.O rose more than 4% as sources said some large U.S. passenger airlines were close to accepting the terms of a $25 billion offer for government payroll aid. For a live blog on the U.S. stock market, click LIVE/ or type LIVE/ in a news window JPMorgan quarterly profit slumps J&J beats profit estimates, but lowers 2020 forecast China's exports, imports shrink less than expected Tesla climbs on Credit Suisse upgrade Futures rise: Dow 1.21%, S&P 1.00%, Nasdaq 1.33% Adds quote, details; Updates prices By Medha Singh April 14 (Reuters) - U.S. stock index futures gained 1% on Tuesday on better-than-expected trade data from China and signs some economies were preparing to ease lockdowns, even as the first batch of earnings reports underlined the hit from the coronavirus outbreak. The benchmark S&P 500 .SPX index has clawed back about 26% in the past month, powered by historic fiscal and monetary support and early signs the virus outbreak was peaking in some U.S. hot spots, but remains about 22% below its February all-time high.
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American Airlines Group Inc AAL.O and United Airlines Holdings Inc UAL.O rose more than 4% as sources said some large U.S. passenger airlines were close to accepting the terms of a $25 billion offer for government payroll aid. For a live blog on the U.S. stock market, click LIVE/ or type LIVE/ in a news window JPMorgan quarterly profit slumps J&J beats profit estimates, but lowers 2020 forecast China's exports, imports shrink less than expected Tesla climbs on Credit Suisse upgrade Futures rise: Dow 1.21%, S&P 1.00%, Nasdaq 1.33% Adds quote, details; Updates prices By Medha Singh April 14 (Reuters) - U.S. stock index futures gained 1% on Tuesday on better-than-expected trade data from China and signs some economies were preparing to ease lockdowns, even as the first batch of earnings reports underlined the hit from the coronavirus outbreak. L4N29I2DC Coronavirus-fueled uncertainty forced Johnson & Johnson JNJ.N to cut its 2020 adjusted profit forecast, but its shares rose 3% as its first-quarter profit beat estimates on higher sales of its cancer drugs and self-care products.
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American Airlines Group Inc AAL.O and United Airlines Holdings Inc UAL.O rose more than 4% as sources said some large U.S. passenger airlines were close to accepting the terms of a $25 billion offer for government payroll aid. For a live blog on the U.S. stock market, click LIVE/ or type LIVE/ in a news window JPMorgan quarterly profit slumps J&J beats profit estimates, but lowers 2020 forecast China's exports, imports shrink less than expected Tesla climbs on Credit Suisse upgrade Futures rise: Dow 1.21%, S&P 1.00%, Nasdaq 1.33% Adds quote, details; Updates prices By Medha Singh April 14 (Reuters) - U.S. stock index futures gained 1% on Tuesday on better-than-expected trade data from China and signs some economies were preparing to ease lockdowns, even as the first batch of earnings reports underlined the hit from the coronavirus outbreak. L4N29I2DC Coronavirus-fueled uncertainty forced Johnson & Johnson JNJ.N to cut its 2020 adjusted profit forecast, but its shares rose 3% as its first-quarter profit beat estimates on higher sales of its cancer drugs and self-care products.
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American Airlines Group Inc AAL.O and United Airlines Holdings Inc UAL.O rose more than 4% as sources said some large U.S. passenger airlines were close to accepting the terms of a $25 billion offer for government payroll aid. For a live blog on the U.S. stock market, click LIVE/ or type LIVE/ in a news window JPMorgan quarterly profit slumps J&J beats profit estimates, but lowers 2020 forecast China's exports, imports shrink less than expected Tesla climbs on Credit Suisse upgrade Futures rise: Dow 1.21%, S&P 1.00%, Nasdaq 1.33% Adds quote, details; Updates prices By Medha Singh April 14 (Reuters) - U.S. stock index futures gained 1% on Tuesday on better-than-expected trade data from China and signs some economies were preparing to ease lockdowns, even as the first batch of earnings reports underlined the hit from the coronavirus outbreak. JPMorgan Chase & Co JPM.N reported a first-quarter profit that slumped by more than two-thirds as it boosted reserves to cover potential loan defaults due to the pandemic.
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6061.0
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2020-04-14 00:00:00 UTC
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3 Reasons to Think Twice Before Investing in American Airlines Stock
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AAL
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https://www.nasdaq.com/articles/3-reasons-to-think-twice-before-investing-in-american-airlines-stock-2020-04-14
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Over the past month, the airline industry has been hit hard by the spread of the novel coronavirus. The demand for air travel disappeared practically overnight, and all of the major airlines are feeling the effects, including American Airlines (NASDAQ:AAL). AAL stock is down more than 19% in the last month.
Source: Shutterstock
Things have been looking up for the industry since Congress passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act, which appropriates $50 billion in relief to the airline industry and will likely help reduce layoffs and give companies a bit of short-term breathing room.
This stimulus money should help keep companies like American Airlines afloat for the time being, but the AAL stock will still struggle if demand for travel doesn’t resume quickly. And even with a $50 billion airline industry bailout, American Airlines may not be a great investment going forward.
7 Penny Stocks To Buy with Massive Upside Potential
Here are three things you should consider before investing in AAL stock.
Carrying a Heavy Debt Load
American Airlines has more debt than any other air carrier. By the end of 2019, its debt had reached a staggering $33.4 billion.
The fact that AAL stock already had this kind of debt load, before the global health crisis, is problematic. Even with the stimulus bill and other cost-cutting measures, this kind of debt gives the company a lot less flexibility.
American recently announced that it has access to $2.73 billion from three different lines of revolving credit. This indicates that the company will likely have to take on even more debt to survive the oncoming recession.
Scrambling to Conserve Cash
American Airlines has taken steps to conserve its cash and simplify operations. The company announced its plans to retire many of its jets, including 34 Boeing 757s, 17 Boeing 767s, 20 Embraer E190s, and many others. In total, the company plans to take 156 jets out of service.
The company has also drastically cut back on its summer travel schedule to accommodate the decline in demand. AAL cut its international travel schedule by 60% and is postponing new routes it had planned for 2020.
Cost-cutting Will Only Help AAL Stock so Much
Ultimately, cost-cutting measures will only help American Airlines so much. Until demand returns to the airline industry, these efforts will only slow the company’s losses. This is likely why the company is considered a moderate Sell on Wall Street and was recently downgraded by Goldman Sachs.
5 Wall Street Bank Stocks Surging on Fed Stimulus
AAL stock is down almost 60% year to date, faring a bit worse than peers, as seen in the near 55% decline for the U.S. Global Jets ETF (NYSEArca:JETS), the exchange-traded fund that has American Airlines in the number two spot at 12.37% of its 34 holdings.
To be sure, this stock rises and falls on sentiment, gaining slightly in recent days as investors were feeling more upbeat about the stock after news passed that health conditions are improving in Europe and New York.
This could indicate that airline travel could begin improving in the coming months. However, it will still take the industry a long time to recover from the pandemic. So in spite of the low price, it’s probably best to avoid AAL stock for the time being.
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 3 Reasons to Think Twice Before Investing in American Airlines Stock appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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This stimulus money should help keep companies like American Airlines afloat for the time being, but the AAL stock will still struggle if demand for travel doesn’t resume quickly. The demand for air travel disappeared practically overnight, and all of the major airlines are feeling the effects, including American Airlines (NASDAQ:AAL). AAL stock is down more than 19% in the last month.
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The demand for air travel disappeared practically overnight, and all of the major airlines are feeling the effects, including American Airlines (NASDAQ:AAL). AAL stock is down more than 19% in the last month. This stimulus money should help keep companies like American Airlines afloat for the time being, but the AAL stock will still struggle if demand for travel doesn’t resume quickly.
|
The demand for air travel disappeared practically overnight, and all of the major airlines are feeling the effects, including American Airlines (NASDAQ:AAL). This stimulus money should help keep companies like American Airlines afloat for the time being, but the AAL stock will still struggle if demand for travel doesn’t resume quickly. AAL stock is down more than 19% in the last month.
|
AAL stock is down more than 19% in the last month. This stimulus money should help keep companies like American Airlines afloat for the time being, but the AAL stock will still struggle if demand for travel doesn’t resume quickly. The demand for air travel disappeared practically overnight, and all of the major airlines are feeling the effects, including American Airlines (NASDAQ:AAL).
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6062.0
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2020-04-14 00:00:00 UTC
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UK shares lag Europe on coronavirus worries, BAT slumps
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AAL
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https://www.nasdaq.com/articles/uk-shares-lag-europe-on-coronavirus-worries-bat-slumps-2020-04-14
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nan
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nan
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For a live blog on European stocks, type LIVE/ in an Eikon news window
FTSE 100 down 0.35%, FTSE 250 drops 1.05%
April 14 (Reuters) - UK stock markets edged lower on Monday as shares in British American Tobacco slumped on reports of a U.S. criminal probe, while signs that Britain will remain under lockdown for a longer period dented the mood.
The blue-chip FTSE 100 index .FTSE fell 0.35% by 0728 GMT, giving up early gains and underperforming its European peers as the UK government signalled that there would be no easing of lockdown measures this week.
A newspaper reported Britain's finance minister as saying the economy could shrink by up to 30% this quarter.
The midcap index .FTMC was down about 1%.
British American Tobacco BATS.L shed nearly 4% after a report the cigarette maker is under a criminal investigation by U.S. regulators over suspected sanctions-busting.
Meanwhile, AstraZeneca's shares surged 7% after saying it would start a clinical trial to assess the potential of Calquence in the treatment of the exaggerated immune response associated with COVID-19 infection in severely ill patients.
(Reporting by Devik Jain and Sruthi Shankar in Bengaluru; Editing by Arun Koyyur)
((Devik.Jain@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 6182 2062; ;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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For a live blog on European stocks, type LIVE/ in an Eikon news window FTSE 100 down 0.35%, FTSE 250 drops 1.05% April 14 (Reuters) - UK stock markets edged lower on Monday as shares in British American Tobacco slumped on reports of a U.S. criminal probe, while signs that Britain will remain under lockdown for a longer period dented the mood. The blue-chip FTSE 100 index .FTSE fell 0.35% by 0728 GMT, giving up early gains and underperforming its European peers as the UK government signalled that there would be no easing of lockdown measures this week. Meanwhile, AstraZeneca's shares surged 7% after saying it would start a clinical trial to assess the potential of Calquence in the treatment of the exaggerated immune response associated with COVID-19 infection in severely ill patients.
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For a live blog on European stocks, type LIVE/ in an Eikon news window FTSE 100 down 0.35%, FTSE 250 drops 1.05% April 14 (Reuters) - UK stock markets edged lower on Monday as shares in British American Tobacco slumped on reports of a U.S. criminal probe, while signs that Britain will remain under lockdown for a longer period dented the mood. The blue-chip FTSE 100 index .FTSE fell 0.35% by 0728 GMT, giving up early gains and underperforming its European peers as the UK government signalled that there would be no easing of lockdown measures this week. British American Tobacco BATS.L shed nearly 4% after a report the cigarette maker is under a criminal investigation by U.S. regulators over suspected sanctions-busting.
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For a live blog on European stocks, type LIVE/ in an Eikon news window FTSE 100 down 0.35%, FTSE 250 drops 1.05% April 14 (Reuters) - UK stock markets edged lower on Monday as shares in British American Tobacco slumped on reports of a U.S. criminal probe, while signs that Britain will remain under lockdown for a longer period dented the mood. The blue-chip FTSE 100 index .FTSE fell 0.35% by 0728 GMT, giving up early gains and underperforming its European peers as the UK government signalled that there would be no easing of lockdown measures this week. (Reporting by Devik Jain and Sruthi Shankar in Bengaluru; Editing by Arun Koyyur) ((Devik.Jain@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 6182 2062; ;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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For a live blog on European stocks, type LIVE/ in an Eikon news window FTSE 100 down 0.35%, FTSE 250 drops 1.05% April 14 (Reuters) - UK stock markets edged lower on Monday as shares in British American Tobacco slumped on reports of a U.S. criminal probe, while signs that Britain will remain under lockdown for a longer period dented the mood. A newspaper reported Britain's finance minister as saying the economy could shrink by up to 30% this quarter. The midcap index .FTMC was down about 1%.
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6063.0
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2020-04-14 00:00:00 UTC
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BUZZ-U.S. STOCKS ON THE MOVE-J&J, Apple, Roku, Tesla, U.S. airlines
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AAL
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https://www.nasdaq.com/articles/buzz-u.s.-stocks-on-the-move-jj-apple-roku-tesla-u.s.-airlines-2020-04-14
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nan
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nan
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Eikon search string for individual stock moves: STXBZ
The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi
The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh
Wall Street's main indexes were set to open higher on Tuesday as the quarterly earnings season began in earnest with JPMorgan Chase and Johnson & Johnson offering the first glimpse of the coronavirus outbreak's impact on corporate America. .N
At 08:59 ET, Dow e-minis 1YMc1 were up 1.51% at 23,661. S&P 500 e-minis ESc1 were up 1.59% at 2,803, while Nasdaq 100 e-minis NQc1 were up 1.91% at 8,486.5. The top three NYSE percentage gainers premarket .PRPG.NQ: ** Medley Capital MCC.N, up 20.0% ** Civeo Corp CVEO.N, up 15.4% ** Chico's Fas Inc CHS.N, up 14.7% The top three NYSE percentage losers premarket .PRPL.NQ: ** Borr Drilling Ltd BORR.N, down 40.7% ** CorEnergy Infrastructure Trust Inc CORR.N, down 34.3% ** Healthcare Trust HTA.N, down 16.1% The top three Nasdaq percentage gainers premarket .PRPG.O: ** Plus Therapeutics PSTVZ.O, up 127.3% ** Sonnet Biotherapeutics Holdings SONN.O, up 106.5% ** Mei Pharma Inc MEIP.O, up 70.1% The top three Nasdaq percentage losers premarket .PRPL.O: ** Scworx Corp WORX.O, down 14.7% ** Immunic Inc IMUX.O, down 13.2% ** OrganiGram Holdings OGI.O, down 11.6%
** Johnson & Johnson JNJ.N: up 3.0% premarket
BUZZ- Rises on Q1 beat; lowers guidance on COVID-19 impact ** Tesla TSLA.O: up 7.4% premarket
BUZZ-Credit Suisse upgrades Tesla, says advantages intact amid coronavirus impact ** Apple Inc AAPL.O: up 2.2% premarket
BUZZ-China iPhone shipments rebound in March
** Inspire Medical Systems Inc INSP.N : down 0.2% premarket
BUZZ-Inspire down on stock offering, withdraws 2020 guidance ** Roku ROKU.O: up 13.0% premarket BUZZ- Roku attracting millions of more eyeballs amid pandemic, shares jump - ** Axsome AXSM.O: up 5.9% premarket
BUZZ-Cowen says Axsome to provide much long-term shareholder value - ** GrubHub GRUB.N: up 1.6% premarket
BUZZ-KeyBanc downgrades to "underweight" on rising competition ** American Airlines Group Inc AAL.O : up 5.8% premarket ** United Airlines Holdings Inc UAL.O : up 6.2% premarket ** Delta Air Lines Inc DAL.N : up 3.3% premarket
** BUZZ-U.S. airlines close to accepting govt aid plan, shares rise ** Oneok Inc OKE.N: up 2.7% premarket BUZZ-Rises after Jefferies upgrades on positive risk-reward opportunity ** MEI Pharma MEIP.O: up 70.1% premarket BUZZ-Surges on licensing deal for cancer drug, gets $100 mln upfront
(Compiled by Arundhati Sarkar in Bengaluru)
((Arundhati.Sarkar@thomsonreuters.com; +1 646 223 8780 Ext: 2776; Reuters Messaging: arundhati.sarkar.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The top three NYSE percentage gainers premarket .PRPG.NQ: ** Medley Capital MCC.N, up 20.0% ** Civeo Corp CVEO.N, up 15.4% ** Chico's Fas Inc CHS.N, up 14.7% The top three NYSE percentage losers premarket .PRPL.NQ: ** Borr Drilling Ltd BORR.N, down 40.7% ** CorEnergy Infrastructure Trust Inc CORR.N, down 34.3% ** Healthcare Trust HTA.N, down 16.1% The top three Nasdaq percentage gainers premarket .PRPG.O: ** Plus Therapeutics PSTVZ.O, up 127.3% ** Sonnet Biotherapeutics Holdings SONN.O, up 106.5% ** Mei Pharma Inc MEIP.O, up 70.1% The top three Nasdaq percentage losers premarket .PRPL.O: ** Scworx Corp WORX.O, down 14.7% ** Immunic Inc IMUX.O, down 13.2% ** OrganiGram Holdings OGI.O, down 11.6% ** Johnson & Johnson JNJ.N: up 3.0% premarket BUZZ- Rises on Q1 beat; lowers guidance on COVID-19 impact ** Tesla TSLA.O: up 7.4% premarket BUZZ-Credit Suisse upgrades Tesla, says advantages intact amid coronavirus impact ** Apple Inc AAPL.O: up 2.2% premarket BUZZ-China iPhone shipments rebound in March ** Inspire Medical Systems Inc INSP.N : down 0.2% premarket BUZZ-Inspire down on stock offering, withdraws 2020 guidance ** Roku ROKU.O: up 13.0% premarket BUZZ- Roku attracting millions of more eyeballs amid pandemic, shares jump - ** Axsome AXSM.O: up 5.9% premarket BUZZ-Cowen says Axsome to provide much long-term shareholder value - ** GrubHub GRUB.N: up 1.6% premarket BUZZ-KeyBanc downgrades to "underweight" on rising competition ** American Airlines Group Inc AAL.O : up 5.8% premarket ** United Airlines Holdings Inc UAL.O : up 6.2% premarket ** Delta Air Lines Inc DAL.N : up 3.3% premarket ** BUZZ-U.S. airlines close to accepting govt aid plan, shares rise ** Oneok Inc OKE.N: up 2.7% premarket BUZZ-Rises after Jefferies upgrades on positive risk-reward opportunity ** MEI Pharma MEIP.O: up 70.1% premarket BUZZ-Surges on licensing deal for cancer drug, gets $100 mln upfront (Compiled by Arundhati Sarkar in Bengaluru) ((Arundhati.Sarkar@thomsonreuters.com; +1 646 223 8780 Ext: 2776; Reuters Messaging: arundhati.sarkar.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. Eikon search string for individual stock moves: STXBZ The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh Wall Street's main indexes were set to open higher on Tuesday as the quarterly earnings season began in earnest with JPMorgan Chase and Johnson & Johnson offering the first glimpse of the coronavirus outbreak's impact on corporate America. .N At 08:59 ET, Dow e-minis 1YMc1 were up 1.51% at 23,661.
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The top three NYSE percentage gainers premarket .PRPG.NQ: ** Medley Capital MCC.N, up 20.0% ** Civeo Corp CVEO.N, up 15.4% ** Chico's Fas Inc CHS.N, up 14.7% The top three NYSE percentage losers premarket .PRPL.NQ: ** Borr Drilling Ltd BORR.N, down 40.7% ** CorEnergy Infrastructure Trust Inc CORR.N, down 34.3% ** Healthcare Trust HTA.N, down 16.1% The top three Nasdaq percentage gainers premarket .PRPG.O: ** Plus Therapeutics PSTVZ.O, up 127.3% ** Sonnet Biotherapeutics Holdings SONN.O, up 106.5% ** Mei Pharma Inc MEIP.O, up 70.1% The top three Nasdaq percentage losers premarket .PRPL.O: ** Scworx Corp WORX.O, down 14.7% ** Immunic Inc IMUX.O, down 13.2% ** OrganiGram Holdings OGI.O, down 11.6% ** Johnson & Johnson JNJ.N: up 3.0% premarket BUZZ- Rises on Q1 beat; lowers guidance on COVID-19 impact ** Tesla TSLA.O: up 7.4% premarket BUZZ-Credit Suisse upgrades Tesla, says advantages intact amid coronavirus impact ** Apple Inc AAPL.O: up 2.2% premarket BUZZ-China iPhone shipments rebound in March ** Inspire Medical Systems Inc INSP.N : down 0.2% premarket BUZZ-Inspire down on stock offering, withdraws 2020 guidance ** Roku ROKU.O: up 13.0% premarket BUZZ- Roku attracting millions of more eyeballs amid pandemic, shares jump - ** Axsome AXSM.O: up 5.9% premarket BUZZ-Cowen says Axsome to provide much long-term shareholder value - ** GrubHub GRUB.N: up 1.6% premarket BUZZ-KeyBanc downgrades to "underweight" on rising competition ** American Airlines Group Inc AAL.O : up 5.8% premarket ** United Airlines Holdings Inc UAL.O : up 6.2% premarket ** Delta Air Lines Inc DAL.N : up 3.3% premarket ** BUZZ-U.S. airlines close to accepting govt aid plan, shares rise ** Oneok Inc OKE.N: up 2.7% premarket BUZZ-Rises after Jefferies upgrades on positive risk-reward opportunity ** MEI Pharma MEIP.O: up 70.1% premarket BUZZ-Surges on licensing deal for cancer drug, gets $100 mln upfront (Compiled by Arundhati Sarkar in Bengaluru) ((Arundhati.Sarkar@thomsonreuters.com; +1 646 223 8780 Ext: 2776; Reuters Messaging: arundhati.sarkar.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. Eikon search string for individual stock moves: STXBZ The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh Wall Street's main indexes were set to open higher on Tuesday as the quarterly earnings season began in earnest with JPMorgan Chase and Johnson & Johnson offering the first glimpse of the coronavirus outbreak's impact on corporate America. S&P 500 e-minis ESc1 were up 1.59% at 2,803, while Nasdaq 100 e-minis NQc1 were up 1.91% at 8,486.5.
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The top three NYSE percentage gainers premarket .PRPG.NQ: ** Medley Capital MCC.N, up 20.0% ** Civeo Corp CVEO.N, up 15.4% ** Chico's Fas Inc CHS.N, up 14.7% The top three NYSE percentage losers premarket .PRPL.NQ: ** Borr Drilling Ltd BORR.N, down 40.7% ** CorEnergy Infrastructure Trust Inc CORR.N, down 34.3% ** Healthcare Trust HTA.N, down 16.1% The top three Nasdaq percentage gainers premarket .PRPG.O: ** Plus Therapeutics PSTVZ.O, up 127.3% ** Sonnet Biotherapeutics Holdings SONN.O, up 106.5% ** Mei Pharma Inc MEIP.O, up 70.1% The top three Nasdaq percentage losers premarket .PRPL.O: ** Scworx Corp WORX.O, down 14.7% ** Immunic Inc IMUX.O, down 13.2% ** OrganiGram Holdings OGI.O, down 11.6% ** Johnson & Johnson JNJ.N: up 3.0% premarket BUZZ- Rises on Q1 beat; lowers guidance on COVID-19 impact ** Tesla TSLA.O: up 7.4% premarket BUZZ-Credit Suisse upgrades Tesla, says advantages intact amid coronavirus impact ** Apple Inc AAPL.O: up 2.2% premarket BUZZ-China iPhone shipments rebound in March ** Inspire Medical Systems Inc INSP.N : down 0.2% premarket BUZZ-Inspire down on stock offering, withdraws 2020 guidance ** Roku ROKU.O: up 13.0% premarket BUZZ- Roku attracting millions of more eyeballs amid pandemic, shares jump - ** Axsome AXSM.O: up 5.9% premarket BUZZ-Cowen says Axsome to provide much long-term shareholder value - ** GrubHub GRUB.N: up 1.6% premarket BUZZ-KeyBanc downgrades to "underweight" on rising competition ** American Airlines Group Inc AAL.O : up 5.8% premarket ** United Airlines Holdings Inc UAL.O : up 6.2% premarket ** Delta Air Lines Inc DAL.N : up 3.3% premarket ** BUZZ-U.S. airlines close to accepting govt aid plan, shares rise ** Oneok Inc OKE.N: up 2.7% premarket BUZZ-Rises after Jefferies upgrades on positive risk-reward opportunity ** MEI Pharma MEIP.O: up 70.1% premarket BUZZ-Surges on licensing deal for cancer drug, gets $100 mln upfront (Compiled by Arundhati Sarkar in Bengaluru) ((Arundhati.Sarkar@thomsonreuters.com; +1 646 223 8780 Ext: 2776; Reuters Messaging: arundhati.sarkar.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. .N At 08:59 ET, Dow e-minis 1YMc1 were up 1.51% at 23,661. S&P 500 e-minis ESc1 were up 1.59% at 2,803, while Nasdaq 100 e-minis NQc1 were up 1.91% at 8,486.5.
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The top three NYSE percentage gainers premarket .PRPG.NQ: ** Medley Capital MCC.N, up 20.0% ** Civeo Corp CVEO.N, up 15.4% ** Chico's Fas Inc CHS.N, up 14.7% The top three NYSE percentage losers premarket .PRPL.NQ: ** Borr Drilling Ltd BORR.N, down 40.7% ** CorEnergy Infrastructure Trust Inc CORR.N, down 34.3% ** Healthcare Trust HTA.N, down 16.1% The top three Nasdaq percentage gainers premarket .PRPG.O: ** Plus Therapeutics PSTVZ.O, up 127.3% ** Sonnet Biotherapeutics Holdings SONN.O, up 106.5% ** Mei Pharma Inc MEIP.O, up 70.1% The top three Nasdaq percentage losers premarket .PRPL.O: ** Scworx Corp WORX.O, down 14.7% ** Immunic Inc IMUX.O, down 13.2% ** OrganiGram Holdings OGI.O, down 11.6% ** Johnson & Johnson JNJ.N: up 3.0% premarket BUZZ- Rises on Q1 beat; lowers guidance on COVID-19 impact ** Tesla TSLA.O: up 7.4% premarket BUZZ-Credit Suisse upgrades Tesla, says advantages intact amid coronavirus impact ** Apple Inc AAPL.O: up 2.2% premarket BUZZ-China iPhone shipments rebound in March ** Inspire Medical Systems Inc INSP.N : down 0.2% premarket BUZZ-Inspire down on stock offering, withdraws 2020 guidance ** Roku ROKU.O: up 13.0% premarket BUZZ- Roku attracting millions of more eyeballs amid pandemic, shares jump - ** Axsome AXSM.O: up 5.9% premarket BUZZ-Cowen says Axsome to provide much long-term shareholder value - ** GrubHub GRUB.N: up 1.6% premarket BUZZ-KeyBanc downgrades to "underweight" on rising competition ** American Airlines Group Inc AAL.O : up 5.8% premarket ** United Airlines Holdings Inc UAL.O : up 6.2% premarket ** Delta Air Lines Inc DAL.N : up 3.3% premarket ** BUZZ-U.S. airlines close to accepting govt aid plan, shares rise ** Oneok Inc OKE.N: up 2.7% premarket BUZZ-Rises after Jefferies upgrades on positive risk-reward opportunity ** MEI Pharma MEIP.O: up 70.1% premarket BUZZ-Surges on licensing deal for cancer drug, gets $100 mln upfront (Compiled by Arundhati Sarkar in Bengaluru) ((Arundhati.Sarkar@thomsonreuters.com; +1 646 223 8780 Ext: 2776; Reuters Messaging: arundhati.sarkar.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. Eikon search string for individual stock moves: STXBZ The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh Wall Street's main indexes were set to open higher on Tuesday as the quarterly earnings season began in earnest with JPMorgan Chase and Johnson & Johnson offering the first glimpse of the coronavirus outbreak's impact on corporate America. .N At 08:59 ET, Dow e-minis 1YMc1 were up 1.51% at 23,661.
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6064.0
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2020-04-14 00:00:00 UTC
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Why Airline Shares Are Up Today
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AAL
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https://www.nasdaq.com/articles/why-airline-shares-are-up-today-2020-04-14
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nan
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nan
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What happened
Airline stocks were under pressure on Monday due to investor fears that the much-anticipated federal bailout funds might be more difficult to access than first imagined. A day later, the outlook for a bailout is much better, and airline stocks are responding with gains.
Shares of United Airlines Holdings (NASDAQ: UAL) were up 10% as of 10:30 a.m. EDT on Tuesday, while shares of Delta Air Lines (NYSE: DAL), American Airlines Group (NASDAQ: AAL), Alaska Air Group (NYSE: ALK), and Allegiant Travel (NASDAQ: ALGT) were all up more than 7%.
A collection of other airlines including Hawaiian Holdings (NASDAQ: HA), JetBlue Airways (NASDAQ: JBLU), Southwest Airlines (NYSE: LUV), and Spirit Airlines (NYSE: SAVE) were all up more than 5%.
So what
Airlines have been hit hard by the COVID-19 pandemic, which has caused revenue to fall upward of 90% year over year as demand for travel has evaporated. The companies are cutting flights, grounding planes, and seeking other ways to cut costs, but are relying on $25 billion in government grants to make payroll and avoid a massive wave of layoffs.
Some airline stocks lost more than half their value in March, but the sector was stabilized somewhat by the passage of the $2 trillion economic stimulus plan containing the airline bailout.
Image source: Getty Images.
The requirements to receive government funds have proved to be more onerous than expected, leading to weekend news reports suggesting some airlines might not gain access to the funding package as expected. That sent shares falling on Monday.
Tuesday's headlines are much more optimistic, with Reuters reporting that several large airlines were close to agreeing to the terms and quoting airline industry officials who expect all major airlines to accept the payroll grants "in the coming days."
Reuters reported that the requirements had not changed, meaning the airlines would have to pay back 30% of the funds and issue warrants for some of the total amount they receive.
It's unclear how much each airline would get. Based on 2019 data, Reuters estimates American and United are each eligible for about $6 billion in grants, while Delta would qualify for about $5.6 billion and Southwest about $4 billion. But given that the total requests are likely to far exceed the $25 billion available, airlines are unlikely to get the full amount they request.
Now what
There was always reason to believe the two sides would resolve differences over the terms of the bailouts. The airlines need the cash, and the White House can ill afford to see thousands of furloughed employees at a time when jobless claims are skyrocketing. The fewer requirements, the better for airline investors. But given the criticism surrounding the bailout and the wording of the legislation, which gave the U.S. Treasury broad leeway in determining the terms for the aid, some restrictions were always likely.
The grants are not a panacea, and the airlines are unlikely to really take off until the pandemic is in the past and the U.S. economy begins to function again. If we exit this period in a recession, as seems likely, it could take until 2021 (if not longer) for the industry to fully recover.
Some discretion is required even assuming the bailout funds are delivered. But for investors willing to take the long-term view and focus on top companies, there is reason to believe the airline sector has finally bottomed out.
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Lou Whiteman owns shares of Delta Air Lines and Spirit Airlines. The Motley Fool owns shares of and recommends Delta Air Lines, Southwest Airlines, and Spirit Airlines. The Motley Fool recommends Alaska Air Group, Hawaiian Holdings, and JetBlue Airways. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shares of United Airlines Holdings (NASDAQ: UAL) were up 10% as of 10:30 a.m. EDT on Tuesday, while shares of Delta Air Lines (NYSE: DAL), American Airlines Group (NASDAQ: AAL), Alaska Air Group (NYSE: ALK), and Allegiant Travel (NASDAQ: ALGT) were all up more than 7%. What happened Airline stocks were under pressure on Monday due to investor fears that the much-anticipated federal bailout funds might be more difficult to access than first imagined. Reuters reported that the requirements had not changed, meaning the airlines would have to pay back 30% of the funds and issue warrants for some of the total amount they receive.
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Shares of United Airlines Holdings (NASDAQ: UAL) were up 10% as of 10:30 a.m. EDT on Tuesday, while shares of Delta Air Lines (NYSE: DAL), American Airlines Group (NASDAQ: AAL), Alaska Air Group (NYSE: ALK), and Allegiant Travel (NASDAQ: ALGT) were all up more than 7%. A collection of other airlines including Hawaiian Holdings (NASDAQ: HA), JetBlue Airways (NASDAQ: JBLU), Southwest Airlines (NYSE: LUV), and Spirit Airlines (NYSE: SAVE) were all up more than 5%. The Motley Fool owns shares of and recommends Delta Air Lines, Southwest Airlines, and Spirit Airlines.
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Shares of United Airlines Holdings (NASDAQ: UAL) were up 10% as of 10:30 a.m. EDT on Tuesday, while shares of Delta Air Lines (NYSE: DAL), American Airlines Group (NASDAQ: AAL), Alaska Air Group (NYSE: ALK), and Allegiant Travel (NASDAQ: ALGT) were all up more than 7%. A collection of other airlines including Hawaiian Holdings (NASDAQ: HA), JetBlue Airways (NASDAQ: JBLU), Southwest Airlines (NYSE: LUV), and Spirit Airlines (NYSE: SAVE) were all up more than 5%. Tuesday's headlines are much more optimistic, with Reuters reporting that several large airlines were close to agreeing to the terms and quoting airline industry officials who expect all major airlines to accept the payroll grants "in the coming days."
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Shares of United Airlines Holdings (NASDAQ: UAL) were up 10% as of 10:30 a.m. EDT on Tuesday, while shares of Delta Air Lines (NYSE: DAL), American Airlines Group (NASDAQ: AAL), Alaska Air Group (NYSE: ALK), and Allegiant Travel (NASDAQ: ALGT) were all up more than 7%. See the 10 stocks *Stock Advisor returns as of March 18, 2020 Lou Whiteman owns shares of Delta Air Lines and Spirit Airlines. The Motley Fool owns shares of and recommends Delta Air Lines, Southwest Airlines, and Spirit Airlines.
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6065.0
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2020-04-13 00:00:00 UTC
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Some U.S. airlines nearing acceptance of payroll aid plan -sources
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AAL
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https://www.nasdaq.com/articles/some-u.s.-airlines-nearing-acceptance-of-payroll-aid-plan-sources-2020-04-13
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nan
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nan
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By Tracy Rucinski and David Shepardson
April 13 (Reuters) - Some large U.S. passenger airlines are close to accepting the terms of a $25 billion offer for government coronavirus payroll aid, with announcements possible as early as Tuesday, people briefed on the matter said.
Brent McIntosh, the Treasury undersecretary for international affairs, told Reuters on Monday the agency was not planning to change the terms laid out on Friday, which require 30% of the funds allotted to each airline to be repaid.
The U.S. government would also receive warrants equal to 10% of the loan amount.
"We’ve attempted to come up with an equitable methodology that works for all passenger air carriers, and we don’t want to engage in individual negotiations that would require us to make changes across the carriers," he said.
Based on wages and benefits in the second and third quarters of 2019, American Airles Group Inc AAL.O and United Airlines Holdings Inc UAL.O were each eligible for about $6 billion in grants, Delta Air Lines Inc DAL.N about $5.6 billion and Southwest Airlines Co LUV.N about $4 billion.
However, one airline official said major carriers may receive only about 75% of the payroll assistance sought because the total amount of funds sought exceeded $25 billion.
Earlier, officials told Reuters all of the large U.S. airlines were increasingly resigned to the terms.
Once they accept, the money could arrive soon.
"We intend to get as much money out as quickly as possible, consistent with our obligation to taxpayers to know that it’s going for the right purposes," McIntosh said.
U.S. passenger airlines, suffering an unprecedented downturn in demand due to the coronavirus, are also eligible for a separate $25 billion loan package under the CARES Act.
They had lobbied for the grant portion to be free cash for employee payrolls to prevent layoffs through Sept. 30, helping to ensure a trained staff is on hand for flights to resume and support an economic rebound once consumer sentiment recovers.
American, United, Delta and Southwest have said they were evaluating the aid terms but had no additional comment.
On Sunday, just 90,510 travelers went through U.S. security checkpoints – another new low – down from nearly 2.5 million a year earlier.
(Reporting by Tracy Rucinski and David Shepardson; editing by Jonathan Oatis and Tom Brown)
((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.
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Based on wages and benefits in the second and third quarters of 2019, American Airles Group Inc AAL.O and United Airlines Holdings Inc UAL.O were each eligible for about $6 billion in grants, Delta Air Lines Inc DAL.N about $5.6 billion and Southwest Airlines Co LUV.N about $4 billion. By Tracy Rucinski and David Shepardson April 13 (Reuters) - Some large U.S. passenger airlines are close to accepting the terms of a $25 billion offer for government coronavirus payroll aid, with announcements possible as early as Tuesday, people briefed on the matter said. Brent McIntosh, the Treasury undersecretary for international affairs, told Reuters on Monday the agency was not planning to change the terms laid out on Friday, which require 30% of the funds allotted to each airline to be repaid.
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Based on wages and benefits in the second and third quarters of 2019, American Airles Group Inc AAL.O and United Airlines Holdings Inc UAL.O were each eligible for about $6 billion in grants, Delta Air Lines Inc DAL.N about $5.6 billion and Southwest Airlines Co LUV.N about $4 billion. By Tracy Rucinski and David Shepardson April 13 (Reuters) - Some large U.S. passenger airlines are close to accepting the terms of a $25 billion offer for government coronavirus payroll aid, with announcements possible as early as Tuesday, people briefed on the matter said. Earlier, officials told Reuters all of the large U.S. airlines were increasingly resigned to the terms.
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Based on wages and benefits in the second and third quarters of 2019, American Airles Group Inc AAL.O and United Airlines Holdings Inc UAL.O were each eligible for about $6 billion in grants, Delta Air Lines Inc DAL.N about $5.6 billion and Southwest Airlines Co LUV.N about $4 billion. By Tracy Rucinski and David Shepardson April 13 (Reuters) - Some large U.S. passenger airlines are close to accepting the terms of a $25 billion offer for government coronavirus payroll aid, with announcements possible as early as Tuesday, people briefed on the matter said. However, one airline official said major carriers may receive only about 75% of the payroll assistance sought because the total amount of funds sought exceeded $25 billion.
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Based on wages and benefits in the second and third quarters of 2019, American Airles Group Inc AAL.O and United Airlines Holdings Inc UAL.O were each eligible for about $6 billion in grants, Delta Air Lines Inc DAL.N about $5.6 billion and Southwest Airlines Co LUV.N about $4 billion. By Tracy Rucinski and David Shepardson April 13 (Reuters) - Some large U.S. passenger airlines are close to accepting the terms of a $25 billion offer for government coronavirus payroll aid, with announcements possible as early as Tuesday, people briefed on the matter said. Earlier, officials told Reuters all of the large U.S. airlines were increasingly resigned to the terms.
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6066.0
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2020-04-13 00:00:00 UTC
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U.S. government holding firm on airline aid plan, could end up with 3% of American Airlines
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AAL
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https://www.nasdaq.com/articles/u.s.-government-holding-firm-on-airline-aid-plan-could-end-up-with-3-of-american-airlines
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nan
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nan
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By Tracy Rucinski and David Shepardson
April 13 (Reuters) - The U.S. Treasury Department is holding firm on the terms of a $25 billion offer for government aid to airlines to help them meet payroll during the coronavirus downturn, officials said on Monday, and the plan could give the government more than 3% of American Airlines Group Inc AAL.O.
Some airlines are increasingly resigned to the terms, which would require 30% of the funds -- roughly based on six months of each carrier's payroll -- to be repaid and give the government warrants equal to 10% of the loan amount, the officials said, noting that agreements could be reached within the coming days.
Under those terms, the government could end up with the largest equity stake in American Airlines, which has the most employees of the U.S. carriers and has said it was seeking about $6 billion in payroll support.
It also has the lowest market capitalization of the four main U.S. carriers at about $5.3 billion, less than the amount it would receive in aid.
One airline official said the warrant price had been locked before Monday, when airline shares fell sharply.
According to airlines' market capitalization on Friday, the government could end up owning about 2.3% of United Airlines Holdings Inc UAL.O, 1% of Delta Air Lines Inc DAL.N, 1.3% of JetBlue Airways Corp JBLU.O, and 0.6% of Southwest Airlines Co LUV.N.
Raymond James analyst Savanthi Syth reached similar calculations, which assume that each carrier gets the amount it requested and that the government exercises the warrants, which allow purchase of shares at a set price, to the full extent possible. It is likely, however, that the government simply cashes them out by getting the appreciation in share price at a date in future.
Based on wages and benefits in the second and third quarters of 2019, United was eligible for about $6 billion in grants, Delta about $5.6 billion and Southwest about $4 billion.
The potential equity dilution is lower than many analysts had feared. Still, airline shares fell on Monday on disappointment that a portion of a $25 billion payroll support package would have to be repaid.
This is causing a dilemma for some airlines worried about adding more debt to their balance sheets before a recovery in travel demand is more certain, said Syth.
"In a quick recovery it makes sense to take this grant. But if you're not expecting a quick recovery and you expect operational levels to remain low next winter, you don't want to be so laden with debt that might harm more people at the end of it," said Syth.
"That's the calculation that they have to make: do you say OK, for the long-term health of the company does it make sense to take this money and make furlough decisions later where you might be in a worse debt position, or to maybe walk away from this money and take some of the pain early and then be in a better position once we're out of the worst of this to try to recover."
If things do not improve, airlines may need this summer to file notices of impending mass layoffs that could come soon after Sept. 30 -- the date by which they are required to keep employees on staff if they accept payroll support.
The prospect of layoffs could prompt Congress to take another look at the issue, either in a new round of support for airlines or by forgiving the loans attached to the grants, some people said.
Those layoffs could come just weeks before the 2020 presidential election.
On Sunday, just 90,510 travelers went through security checkpoints – another new low – down from nearly 2.5 million a year earlier.
(Reporting by Tracy Rucinski and David Shepardson; editing by Jonathan Oatis)
((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.
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By Tracy Rucinski and David Shepardson April 13 (Reuters) - The U.S. Treasury Department is holding firm on the terms of a $25 billion offer for government aid to airlines to help them meet payroll during the coronavirus downturn, officials said on Monday, and the plan could give the government more than 3% of American Airlines Group Inc AAL.O. Some airlines are increasingly resigned to the terms, which would require 30% of the funds -- roughly based on six months of each carrier's payroll -- to be repaid and give the government warrants equal to 10% of the loan amount, the officials said, noting that agreements could be reached within the coming days. Raymond James analyst Savanthi Syth reached similar calculations, which assume that each carrier gets the amount it requested and that the government exercises the warrants, which allow purchase of shares at a set price, to the full extent possible.
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By Tracy Rucinski and David Shepardson April 13 (Reuters) - The U.S. Treasury Department is holding firm on the terms of a $25 billion offer for government aid to airlines to help them meet payroll during the coronavirus downturn, officials said on Monday, and the plan could give the government more than 3% of American Airlines Group Inc AAL.O. Some airlines are increasingly resigned to the terms, which would require 30% of the funds -- roughly based on six months of each carrier's payroll -- to be repaid and give the government warrants equal to 10% of the loan amount, the officials said, noting that agreements could be reached within the coming days. Based on wages and benefits in the second and third quarters of 2019, United was eligible for about $6 billion in grants, Delta about $5.6 billion and Southwest about $4 billion.
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By Tracy Rucinski and David Shepardson April 13 (Reuters) - The U.S. Treasury Department is holding firm on the terms of a $25 billion offer for government aid to airlines to help them meet payroll during the coronavirus downturn, officials said on Monday, and the plan could give the government more than 3% of American Airlines Group Inc AAL.O. Under those terms, the government could end up with the largest equity stake in American Airlines, which has the most employees of the U.S. carriers and has said it was seeking about $6 billion in payroll support. According to airlines' market capitalization on Friday, the government could end up owning about 2.3% of United Airlines Holdings Inc UAL.O, 1% of Delta Air Lines Inc DAL.N, 1.3% of JetBlue Airways Corp JBLU.O, and 0.6% of Southwest Airlines Co LUV.N.
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By Tracy Rucinski and David Shepardson April 13 (Reuters) - The U.S. Treasury Department is holding firm on the terms of a $25 billion offer for government aid to airlines to help them meet payroll during the coronavirus downturn, officials said on Monday, and the plan could give the government more than 3% of American Airlines Group Inc AAL.O. Under those terms, the government could end up with the largest equity stake in American Airlines, which has the most employees of the U.S. carriers and has said it was seeking about $6 billion in payroll support. One airline official said the warrant price had been locked before Monday, when airline shares fell sharply.
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6067.0
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2020-04-13 00:00:00 UTC
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How Bulls and Bears Can Trade American Airlines Stock Now
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AAL
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https://www.nasdaq.com/articles/how-bulls-and-bears-can-trade-american-airlines-stock-now-2020-04-13
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The airline industry finds itself at the epicenter of the pandemic maelstrom. With air travel grinding to a halt, shares of major carriers like Delta Airlines (NYSE:DAL) and Southwest (NYSE:LUV) have been decimated. American Airlines (NYSE:AAL) also counts itself among the victims, but AAL stock has been showing some subtle signs of improvement.
Source: GagliardiPhotography / Shutterstock.com
Today’s article will update you on the damage, and point out the key technical levels that matter.
One month ago, I didn’t have anything good to say about American Airlines’ stock chart, but price and volume patterns have since improved. News followers will point to the unprecedented amount of stimulus flowing into the economy and the direct government aid to airlines as the causes for the progress. Perhaps they’re right. Or maybe AAL stock was just so beaten down that the damage to the company’s bottom line was priced in.
Regardless, it’s not the why but the what that commands our attention today. Let’s look at the good and the bad about American Airlines.
The Good for AAL Stock
I see two technical developments that bulls should be celebrating. First is the shift in volume patterns. The last two advances saw a sharp uptick in participation. The cluster of accumulation days speaks to either heavy short-covering or fresh buying pressure. Either way, it’s a promising change in character.
4 Fitness Stocks to Buy Now for a Fit Portfolio
The second item I feel is worth mentioning is the downtrend’s slowing momentum. Though American Airlines has been carving out lower pivot lows, the RSI indicator has created higher swing lows, forming what is known as a bullish momentum divergence. The signal helps confirm a slowdown in selling pressure.
As positive as both developments are, however, we have yet to see upside confirmation. And that brings us to the bad.
The Bad
The weekly and daily downtrends remain intact. For all their fury, the last two rallies have failed to break above overhead resistance. Monday morning’s downside reversal looks to be ending last week’s rebound. If sellers press their advantage, a return to the lows of $9.09 is likely.
Until the pattern of lower swing highs and lower swing lows is broken, caution is warranted. Slowing momentum doesn’t have to result in a trend reversal. American Airlines could instead morph into a trading range as we await more evidence on how the coronavirus will play out.
To prepare for either outcome, here are my preferred bull and bear trades to place now.
Bull: Buy AAL stock only if it breaks above Friday’s high ($13.40). I’d stop out on a break of today’s low ($11.25 so far). Use $17 as your profit target.
Bear: Short AAL stock now with a stop over Friday’s high ($13.40). Target $9 and below.
For a free trial to the best trading community on the planet and Tyler’s current home, click here! As of this writing, he did not hold a position in any of the aforementioned securities.
The post How Bulls and Bears Can Trade American Airlines Stock Now appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines (NYSE:AAL) also counts itself among the victims, but AAL stock has been showing some subtle signs of improvement. Or maybe AAL stock was just so beaten down that the damage to the company’s bottom line was priced in. The Good for AAL Stock I see two technical developments that bulls should be celebrating.
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Bull: Buy AAL stock only if it breaks above Friday’s high ($13.40). American Airlines (NYSE:AAL) also counts itself among the victims, but AAL stock has been showing some subtle signs of improvement. Or maybe AAL stock was just so beaten down that the damage to the company’s bottom line was priced in.
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American Airlines (NYSE:AAL) also counts itself among the victims, but AAL stock has been showing some subtle signs of improvement. Or maybe AAL stock was just so beaten down that the damage to the company’s bottom line was priced in. The Good for AAL Stock I see two technical developments that bulls should be celebrating.
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Bull: Buy AAL stock only if it breaks above Friday’s high ($13.40). American Airlines (NYSE:AAL) also counts itself among the victims, but AAL stock has been showing some subtle signs of improvement. Or maybe AAL stock was just so beaten down that the damage to the company’s bottom line was priced in.
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6068.0
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2020-04-13 00:00:00 UTC
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Why Airline Shares Are Falling Today
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AAL
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https://www.nasdaq.com/articles/why-airline-shares-are-falling-today-2020-04-13
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nan
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nan
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What happened
Airline stocks were under pressure on Monday after weekend reports indicating the U.S. Treasury Department is playing hardball in negotiations over bailout funds. Investors turned optimistic after the $2 trillion economic stimulus plan cleared Congress in late March, but it now appears clear the airlines will not have easy access to the funds.
Shares of United Airlines Holdings (NASDAQ: UAL) led the rout, down more than 9% as of 11 a.m. EDT, with shares of American Airlines Group (NASDAQ: AAL), Delta Air Lines (NYSE: DAL), Spirit Airlines (NYSE: SAVE), Southwest Airlines (NYSE: LUV), Hawaiian Holdings (NASDAQ: HA), Alaska Air Group (NYSE: ALK), and JetBlue Airways (NASDAQ: JBLU) all down 7% or more.
So what
Airlines have been hit hard by the COVID-19 pandemic, which has caused travel demand to dry up overnight. As companies expect revenue to fall by upward of 90% year over year, they have cut flights, grounded planes, and sought other ways to reduce expenses.
Those cuts include offering voluntary retirements or leave to employees, but so far no layoffs. Airlines have resisted layoffs in part because they expected $25 billion in grants as part of the stimulus bill earmarked to help them meet payroll.
Image source: Getty Images.
Reuters reported over the weekend that Treasury Secretary Steven Mnuchin and staffers have told airlines the government will require the companies to repay 30% of the grants in low-cost loans over 10 years, while also seeking warrants equal to 10% of the loan amount. Airlines, according to the report, have balked at that demand, noting that the $25 billion in total funding doesn't even cover the full amount of payroll costs submitted.
The standoff between Treasury and airlines is a risky proposition for both sides. The airlines need cash if they are to survive the pandemic-caused downturn and a potential slow recovery in travel once the outbreak is contained. The alternative is likely massive layoffs or at least furloughs, putting more strain on unemployment resources at a time when jobless claims are skyrocketing.
Treasury's insistence on repayment has united labor and management, a rarity in the airline industry. David Weaver, communications director for the Air Line Pilots Association, a major pilot union, in a Sunday-night tweet warned Treasury is "threatening the jobs" of pilots and other aviation workers by treating grants like loans.
And Sara Nelson, president of the Association of Flight Attendants, wrote that Treasury is "stealing from the money Congress allocated directly to workers" and warned if the terms do not change, "job cuts will happen now AND longer term cuts will come in October."
.@WeAreALPA is very concerned that @USTreasury is threatening the jobs of #Pilots & other aviation workers by treating grants for airlines like loans. This will hurt workers now & in future – & slow the recovery the #CARESAct was meant to facilitate. #putworkersfirst #COVID19 https://t.co/MTOt1Si2OG
— David Weaver (@DavidWeaver) April 12, 2020
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Shares of United Airlines Holdings (NASDAQ: UAL) led the rout, down more than 9% as of 11 a.m. EDT, with shares of American Airlines Group (NASDAQ: AAL), Delta Air Lines (NYSE: DAL), Spirit Airlines (NYSE: SAVE), Southwest Airlines (NYSE: LUV), Hawaiian Holdings (NASDAQ: HA), Alaska Air Group (NYSE: ALK), and JetBlue Airways (NASDAQ: JBLU) all down 7% or more. What happened Airline stocks were under pressure on Monday after weekend reports indicating the U.S. Treasury Department is playing hardball in negotiations over bailout funds. Airlines, according to the report, have balked at that demand, noting that the $25 billion in total funding doesn't even cover the full amount of payroll costs submitted.
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Shares of United Airlines Holdings (NASDAQ: UAL) led the rout, down more than 9% as of 11 a.m. EDT, with shares of American Airlines Group (NASDAQ: AAL), Delta Air Lines (NYSE: DAL), Spirit Airlines (NYSE: SAVE), Southwest Airlines (NYSE: LUV), Hawaiian Holdings (NASDAQ: HA), Alaska Air Group (NYSE: ALK), and JetBlue Airways (NASDAQ: JBLU) all down 7% or more. David Weaver, communications director for the Air Line Pilots Association, a major pilot union, in a Sunday-night tweet warned Treasury is "threatening the jobs" of pilots and other aviation workers by treating grants like loans. @WeAreALPA is very concerned that @USTreasury is threatening the jobs of #Pilots & other aviation workers by treating grants for airlines like loans.
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Shares of United Airlines Holdings (NASDAQ: UAL) led the rout, down more than 9% as of 11 a.m. EDT, with shares of American Airlines Group (NASDAQ: AAL), Delta Air Lines (NYSE: DAL), Spirit Airlines (NYSE: SAVE), Southwest Airlines (NYSE: LUV), Hawaiian Holdings (NASDAQ: HA), Alaska Air Group (NYSE: ALK), and JetBlue Airways (NASDAQ: JBLU) all down 7% or more. Reuters reported over the weekend that Treasury Secretary Steven Mnuchin and staffers have told airlines the government will require the companies to repay 30% of the grants in low-cost loans over 10 years, while also seeking warrants equal to 10% of the loan amount. David Weaver, communications director for the Air Line Pilots Association, a major pilot union, in a Sunday-night tweet warned Treasury is "threatening the jobs" of pilots and other aviation workers by treating grants like loans.
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Shares of United Airlines Holdings (NASDAQ: UAL) led the rout, down more than 9% as of 11 a.m. EDT, with shares of American Airlines Group (NASDAQ: AAL), Delta Air Lines (NYSE: DAL), Spirit Airlines (NYSE: SAVE), Southwest Airlines (NYSE: LUV), Hawaiian Holdings (NASDAQ: HA), Alaska Air Group (NYSE: ALK), and JetBlue Airways (NASDAQ: JBLU) all down 7% or more. What happened Airline stocks were under pressure on Monday after weekend reports indicating the U.S. Treasury Department is playing hardball in negotiations over bailout funds. Reuters reported over the weekend that Treasury Secretary Steven Mnuchin and staffers have told airlines the government will require the companies to repay 30% of the grants in low-cost loans over 10 years, while also seeking warrants equal to 10% of the loan amount.
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6069.0
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2020-04-13 00:00:00 UTC
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One-Third of American Airlines Pilots and Flight Attendants Are Taking Leave or Early Retirement
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AAL
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https://www.nasdaq.com/articles/one-third-of-american-airlines-pilots-and-flight-attendants-are-taking-leave-or-early
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nan
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nan
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American Airlines Group (NASDAQ: AAL) has cut about 80% of its flights and grounded planes in response to the COVID-19 pandemic-induced travel slowdown. While the company has not yet resorted to layoffs as it manages through the crisis, it will have a significantly smaller headcount in the months to come.
American has granted voluntary leave to 4,800 pilots for April or May, while another 715 will take an early retirement package including some pay and benefits, according to the Dallas Morning News. About 7,960 flight attendants are taking either leave or early retirements, with leave packages ranging from three to 12 months.
The airline had about 13,800 pilots and 25,300 flight attendants heading into the crisis.
Image source: American Airlines
Airlines have been hard hit by the pandemic, which has caused travel demand to evaporate overnight. The companies hope to receive federal funding, which would allow them to avoid layoffs during the downturn, but no amount of assistance will be enough if traffic does not return in the months to come.
American, which is seeking $12 billion in government aid, seems to be telegraphing that it expects a slow recovery. The industry headed into 2020 grappling with a potential pilot shortage, in part because of federal guidelines that require pilots to retire at 65. Three months ago, airlines were lobbying to get that restriction eased. Now they are offering early retirements.
In a letter discussing the early retirements, the airline called the sudden nature of the departures "a bit unsettling as this wasn't what any of us had planned."
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 March 18, 2020
Lou Whiteman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines Group (NASDAQ: AAL) has cut about 80% of its flights and grounded planes in response to the COVID-19 pandemic-induced travel slowdown. American has granted voluntary leave to 4,800 pilots for April or May, while another 715 will take an early retirement package including some pay and benefits, according to the Dallas Morning News. In a letter discussing the early retirements, the airline called the sudden nature of the departures "a bit unsettling as this wasn't what any of us had planned."
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American Airlines Group (NASDAQ: AAL) has cut about 80% of its flights and grounded planes in response to the COVID-19 pandemic-induced travel slowdown. About 7,960 flight attendants are taking either leave or early retirements, with leave packages ranging from three to 12 months. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.
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American Airlines Group (NASDAQ: AAL) has cut about 80% of its flights and grounded planes in response to the COVID-19 pandemic-induced travel slowdown. 10 stocks we like better than American Airlines Group When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. * David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and American Airlines Group wasn't one of them!
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American Airlines Group (NASDAQ: AAL) has cut about 80% of its flights and grounded planes in response to the COVID-19 pandemic-induced travel slowdown. The airline had about 13,800 pilots and 25,300 flight attendants heading into the crisis. Now they are offering early retirements.
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6070.0
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2020-04-11 00:00:00 UTC
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Airlines want U.S. Treasury to scrap proposal to make some grant money repayable
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AAL
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https://www.nasdaq.com/articles/airlines-want-u.s.-treasury-to-scrap-proposal-to-make-some-grant-money-repayable-2020-04
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By David Shepardson and Tracy Rucinski
WASHINGTON/CHICAGO, April 11 (Reuters) - Major U.S. airlines were urging Treasury officials and the federal government's outside advisers on Saturday to scrap or revise a proposal that would make part of the $25 billion earmarked by Congress to help keep workers on the payroll repayable in the form of low-cost loans.
Treasury Secretary Steven Mnuchin told the airlines on Friday the government would require them to repay 30% of the grants in low-cost loans over 10 years -- with the first five years at 1% interest -- before the interest rate would rise. The government is also seeking warrants equal to 10% of the loan amount.
U.S. airlines have idled more than 2,200 airplanes, a third of the fleet, canceled hundreds of thousands of flights and sought to shore up their balance sheets as travel demand has fallen by about 95% because of the coronavirus pandemic.
Airlines, in calls with U.S. Treasury officials and the government's outside advisers, were making the case that Treasury should not require them to repay a big chunk of grants, in part because the $25 billion is not sufficient to cover the full amount of payroll costs submitted.
Airlines for America, a trade group representing American Airlines Group Inc AAL.O, United Airlines UAL.O, Delta Air Lines DAL.N Southwest Airlines Co LUV.N, JetBlue Airways Corp JBLU.N, Alaska Airlines ALK.N and others, said Saturday it believes the $25 billion in payroll assistance was "to be only in grants – which is considerably more effective for our employees – and not a combination of grants and loans."
Under the terms laid out in the statute, companies receiving funds cannot lay off employees before Sept. 30 or change collective bargaining agreements. Mnuchin has authority to demand compensation for the grants but is not required to do so.
Sara Nelson, president of the Association of Flight Attendants union, wrote on Twitter Saturday that if Treasury insists on airlines repaying $7 billion in grants, "job cuts will happen now AND longer term cuts will come in October. This is absolutely stealing from the money Congress allocated directly to workers."
Congress set aside another $25 billion in loans to passenger airlines, but no action on those is expected until Treasury makes decisions on the grants.
Some airlines were seeking other changes in the terms including ensuring grant funds are paid as a lump sum rather than on a monthly basis.
The Treasury said Friday Mnuchin will not require passenger air carriers that will receive $100 million in assistance or less to provide compensation.
Reuters first reported the terms Mnuchin proposed to carriers.
Treasury said Friday it is working with 12 larger passenger air carriers "to secure appropriate financial instruments to compensate taxpayers."
Airlines were told they could apply for the amount they paid in salaries and benefits in the second and third quarters of 2019. American Airlines, with the largest number of employees, had said it was seeking around $6 billion.
(Reporting by David Shepardson and Tracy Rucinski; 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.
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Airlines for America, a trade group representing American Airlines Group Inc AAL.O, United Airlines UAL.O, Delta Air Lines DAL.N Southwest Airlines Co LUV.N, JetBlue Airways Corp JBLU.N, Alaska Airlines ALK.N and others, said Saturday it believes the $25 billion in payroll assistance was "to be only in grants – which is considerably more effective for our employees – and not a combination of grants and loans." By David Shepardson and Tracy Rucinski WASHINGTON/CHICAGO, April 11 (Reuters) - Major U.S. airlines were urging Treasury officials and the federal government's outside advisers on Saturday to scrap or revise a proposal that would make part of the $25 billion earmarked by Congress to help keep workers on the payroll repayable in the form of low-cost loans. U.S. airlines have idled more than 2,200 airplanes, a third of the fleet, canceled hundreds of thousands of flights and sought to shore up their balance sheets as travel demand has fallen by about 95% because of the coronavirus pandemic.
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Airlines for America, a trade group representing American Airlines Group Inc AAL.O, United Airlines UAL.O, Delta Air Lines DAL.N Southwest Airlines Co LUV.N, JetBlue Airways Corp JBLU.N, Alaska Airlines ALK.N and others, said Saturday it believes the $25 billion in payroll assistance was "to be only in grants – which is considerably more effective for our employees – and not a combination of grants and loans." By David Shepardson and Tracy Rucinski WASHINGTON/CHICAGO, April 11 (Reuters) - Major U.S. airlines were urging Treasury officials and the federal government's outside advisers on Saturday to scrap or revise a proposal that would make part of the $25 billion earmarked by Congress to help keep workers on the payroll repayable in the form of low-cost loans. Treasury Secretary Steven Mnuchin told the airlines on Friday the government would require them to repay 30% of the grants in low-cost loans over 10 years -- with the first five years at 1% interest -- before the interest rate would rise.
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Airlines for America, a trade group representing American Airlines Group Inc AAL.O, United Airlines UAL.O, Delta Air Lines DAL.N Southwest Airlines Co LUV.N, JetBlue Airways Corp JBLU.N, Alaska Airlines ALK.N and others, said Saturday it believes the $25 billion in payroll assistance was "to be only in grants – which is considerably more effective for our employees – and not a combination of grants and loans." By David Shepardson and Tracy Rucinski WASHINGTON/CHICAGO, April 11 (Reuters) - Major U.S. airlines were urging Treasury officials and the federal government's outside advisers on Saturday to scrap or revise a proposal that would make part of the $25 billion earmarked by Congress to help keep workers on the payroll repayable in the form of low-cost loans. Airlines, in calls with U.S. Treasury officials and the government's outside advisers, were making the case that Treasury should not require them to repay a big chunk of grants, in part because the $25 billion is not sufficient to cover the full amount of payroll costs submitted.
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Airlines for America, a trade group representing American Airlines Group Inc AAL.O, United Airlines UAL.O, Delta Air Lines DAL.N Southwest Airlines Co LUV.N, JetBlue Airways Corp JBLU.N, Alaska Airlines ALK.N and others, said Saturday it believes the $25 billion in payroll assistance was "to be only in grants – which is considerably more effective for our employees – and not a combination of grants and loans." By David Shepardson and Tracy Rucinski WASHINGTON/CHICAGO, April 11 (Reuters) - Major U.S. airlines were urging Treasury officials and the federal government's outside advisers on Saturday to scrap or revise a proposal that would make part of the $25 billion earmarked by Congress to help keep workers on the payroll repayable in the form of low-cost loans. Mnuchin has authority to demand compensation for the grants but is not required to do so.
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6071.0
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2020-04-10 00:00:00 UTC
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Treasury wants warrants, repayment from major U.S. airlines on 30% of grant money -sources
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AAL
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https://www.nasdaq.com/articles/treasury-wants-warrants-repayment-from-major-u.s.-airlines-on-30-of-grant-money-sources
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nan
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nan
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By David Shepardson and Tracy Rucinski
WASHINGTON/CHICAGO, April 10 (Reuters) - U.S. Treasury Secretary Steven Mnuchin told major airlines on Friday he wants them to repay some of the $25 billion in cash grants the U.S. Congress approved last month to cover payroll costs, three industry officials briefed on the matter told Reuters.
The Treasury said in a statement Mnuchin will not require passenger air carriers that will receive $100 million in payroll assistance or less to provide compensation and "funds will be available promptly upon approval of their applications."
Mnuchin spoke with the chief executives of major airlines in separate calls on Friday and told them the department was offering 70% of the aid in grants that would not need to be repaid, and 30% in low-interest loans for which the airlines would be required to offer warrants, the sources said.
Treasury said it is working with 12 passenger air carriers expected to get more than $100 million "to secure appropriate financial instruments to compensate taxpayers."
The majority of the smaller requests sought less than $10 million and Treasury is not seeking compensation in order to maintain "needed air service," avoiding layoffs "and limiting share buyback and executive compensation."
Treasury said it received more than 230 requests from passenger carriers.
Airlines were told they could apply for the amount they paid in salaries and benefits in the second and third quarters of 2019. American Airlines Group Inc AAL.O, with the largest number of employees, had said it was seeking around $6 billion.
A United Airlines Holdings Inc UAL.O spokesman said the company was reviewing the details of Treasury's proposal. American Airlines also confirmed it was reviewing the proposal.
Airline boards and officials plan to review the proposals all weekend and it is not clear if they will accept the terms or propose a counteroffer.
U.S. President Donald Trump had said airlines would receive details this weekend about the terms of a $32 billion payroll grant package meant to offset the impact of the coronavirus outbreak.
"We have a great plan for the airlines. We've got to keep the airlines going. You know it's never been a great business but it's a very vital business for the country," Trump said on Friday.
Under the $2.3 trillion CARES Act, passenger airlines are eligible for $25 billion in cash grants for payroll while cargo carriers can get $4 billion and airport contractors like caterers and airplane cleaners $3 billion.
Reuters reported on Thursday that the six largest U.S. airlines -- American Airlines, United Airlines, Delta Air Lines DAL.N Southwest Airlines Co LUV.N, JetBlue Airways Corp JBLU.N and Alaska Airlines ALK.N -- are expected to get around 90% of the $25 billion package.
Airlines say they are suffering the worst crisis of their history as travel demand has dwindled to less than 5% of normal levels. Several major U.S. airlines filed for Chapter 11 bankruptcy protection from creditors after the Sept. 11, 2001 attacks or the 2009 financial crisis.
(Reporting by David Shepardson and Tracy Rucinski; Additional reporting by Tim Hepher and David Lawder; Editing by Sandra Maler and Daniel Wallis)
((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.
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American Airlines Group Inc AAL.O, with the largest number of employees, had said it was seeking around $6 billion. By David Shepardson and Tracy Rucinski WASHINGTON/CHICAGO, April 10 (Reuters) - U.S. Treasury Secretary Steven Mnuchin told major airlines on Friday he wants them to repay some of the $25 billion in cash grants the U.S. Congress approved last month to cover payroll costs, three industry officials briefed on the matter told Reuters. The Treasury said in a statement Mnuchin will not require passenger air carriers that will receive $100 million in payroll assistance or less to provide compensation and "funds will be available promptly upon approval of their applications."
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American Airlines Group Inc AAL.O, with the largest number of employees, had said it was seeking around $6 billion. By David Shepardson and Tracy Rucinski WASHINGTON/CHICAGO, April 10 (Reuters) - U.S. Treasury Secretary Steven Mnuchin told major airlines on Friday he wants them to repay some of the $25 billion in cash grants the U.S. Congress approved last month to cover payroll costs, three industry officials briefed on the matter told Reuters. U.S. President Donald Trump had said airlines would receive details this weekend about the terms of a $32 billion payroll grant package meant to offset the impact of the coronavirus outbreak.
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American Airlines Group Inc AAL.O, with the largest number of employees, had said it was seeking around $6 billion. By David Shepardson and Tracy Rucinski WASHINGTON/CHICAGO, April 10 (Reuters) - U.S. Treasury Secretary Steven Mnuchin told major airlines on Friday he wants them to repay some of the $25 billion in cash grants the U.S. Congress approved last month to cover payroll costs, three industry officials briefed on the matter told Reuters. Mnuchin spoke with the chief executives of major airlines in separate calls on Friday and told them the department was offering 70% of the aid in grants that would not need to be repaid, and 30% in low-interest loans for which the airlines would be required to offer warrants, the sources said.
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American Airlines Group Inc AAL.O, with the largest number of employees, had said it was seeking around $6 billion. By David Shepardson and Tracy Rucinski WASHINGTON/CHICAGO, April 10 (Reuters) - U.S. Treasury Secretary Steven Mnuchin told major airlines on Friday he wants them to repay some of the $25 billion in cash grants the U.S. Congress approved last month to cover payroll costs, three industry officials briefed on the matter told Reuters. Airline boards and officials plan to review the proposals all weekend and it is not clear if they will accept the terms or propose a counteroffer.
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6072.0
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2020-04-09 00:00:00 UTC
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Why Shares of Airlines Are Soaring Today
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AAL
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https://www.nasdaq.com/articles/why-shares-of-airlines-are-soaring-today-2020-04-09
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nan
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nan
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What happened
Airline stocks are gaining altitude again on Thursday, after Treasury Secretary Steven Mnuchin said assistance for the industry is a top priority, and companies could be hearing from his department by the weekend.
Shares of United Airlines Holdings (NASDAQ: UAL) led the way, up 17.6% as of 11 a.m. EDT; shares of American Airlines Group (NASDAQ: AAL), Spirit Airlines (NYSE: SAVE), Hawaiian Holdings (NASDAQ: HA), and Alaska Air Group (NYSE: ALK) were all up more than 13%. JetBlue Airways (NASDAQ: JBLU) is up more than 9%.
Delta Air Lines (NYSE: DAL) and Southwest Airlines (NYSE: LUV), arguably the two strongest companies in the sector, were up 6.8% and 5.2%, respectively.
So what
The airlines have been among the sectors hardest-hit by the COVID-19 coronavirus pandemic, with demand for air travel all but evaporating and revenue plummeting. The companies have responded by cutting flights and grounding planes, but with second-quarter revenue expected to decline by as much as 90% year over year, arguably no amount of cuts could be enough to sustain the industry.
The industry is set to receive up to $50 billion in loans and grants. as part of the $2 trillion economic stimulus package passed by Congress in late March. But there are still questions about how the aid will be distributed, what will be required in return, and how long it will take to hit airline balance sheets.
Image source: Getty Images.
Secretary Mnuchin, appearing on CNBC Thursday morning, said his department is "working around the clock" analyzing airline balance sheets and aid requests, with a plan to update the president on Thursday afternoon and get preliminary information out to the airlines by the weekend.
"It is our objective that airlines will have the liquidity to keep their workers in place," Mnuchin said.
The size of the Thursday jumps correlate pretty well with how desperately the airlines need the assistance, with the airlines perceived to be weaker gaining more than those perceived as having more of a cash runway.
Now what
The government assistance will help, but as said above, there is no amount of cash that will make the airlines viable indefinitely if traffic doesn't return. The sector got good news on that front too from the Mnuchin interview, with the secretary saying the White House could begin to restart the economy as soon as May if there's ample evidence the worst of the pandemic is behind us.
That's still far from certain, and investors need to be mindful we are still in the middle of a dangerous situation that could take a turn for the worse at any moment. But with each passing day it's beginning to appear more likely the airlines will be able to survive this crisis. And if they do, the stocks -- after falling 30% or more in March -- are likely undervalued.
Given the risk, I'd recommend keeping positions small and focusing only on top operators, but this is an interesting time for investors to look hard at the airline sector.
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Lou Whiteman owns shares of Delta Air Lines and Spirit Airlines. The Motley Fool owns shares of and recommends Delta Air Lines, Southwest Airlines, and Spirit Airlines. The Motley Fool recommends Alaska Air Group, Hawaiian Holdings, and JetBlue Airways. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shares of United Airlines Holdings (NASDAQ: UAL) led the way, up 17.6% as of 11 a.m. EDT; shares of American Airlines Group (NASDAQ: AAL), Spirit Airlines (NYSE: SAVE), Hawaiian Holdings (NASDAQ: HA), and Alaska Air Group (NYSE: ALK) were all up more than 13%. What happened Airline stocks are gaining altitude again on Thursday, after Treasury Secretary Steven Mnuchin said assistance for the industry is a top priority, and companies could be hearing from his department by the weekend. The sector got good news on that front too from the Mnuchin interview, with the secretary saying the White House could begin to restart the economy as soon as May if there's ample evidence the worst of the pandemic is behind us.
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Shares of United Airlines Holdings (NASDAQ: UAL) led the way, up 17.6% as of 11 a.m. EDT; shares of American Airlines Group (NASDAQ: AAL), Spirit Airlines (NYSE: SAVE), Hawaiian Holdings (NASDAQ: HA), and Alaska Air Group (NYSE: ALK) were all up more than 13%. The Motley Fool owns shares of and recommends Delta Air Lines, Southwest Airlines, and Spirit Airlines. The Motley Fool recommends Alaska Air Group, Hawaiian Holdings, and JetBlue Airways.
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Shares of United Airlines Holdings (NASDAQ: UAL) led the way, up 17.6% as of 11 a.m. EDT; shares of American Airlines Group (NASDAQ: AAL), Spirit Airlines (NYSE: SAVE), Hawaiian Holdings (NASDAQ: HA), and Alaska Air Group (NYSE: ALK) were all up more than 13%. See the 10 stocks *Stock Advisor returns as of March 18, 2020 Lou Whiteman owns shares of Delta Air Lines and Spirit Airlines. The Motley Fool owns shares of and recommends Delta Air Lines, Southwest Airlines, and Spirit Airlines.
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Shares of United Airlines Holdings (NASDAQ: UAL) led the way, up 17.6% as of 11 a.m. EDT; shares of American Airlines Group (NASDAQ: AAL), Spirit Airlines (NYSE: SAVE), Hawaiian Holdings (NASDAQ: HA), and Alaska Air Group (NYSE: ALK) were all up more than 13%. See the 10 stocks *Stock Advisor returns as of March 18, 2020 Lou Whiteman owns shares of Delta Air Lines and Spirit Airlines. The Motley Fool owns shares of and recommends Delta Air Lines, Southwest Airlines, and Spirit Airlines.
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6073.0
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2020-04-09 00:00:00 UTC
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BUZZ-U.S. STOCKS ON THE MOVE-Norwegian Cruise Line, Gap Inc, Pluristem Therapeutics, CleanSpark
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AAL
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https://www.nasdaq.com/articles/buzz-u.s.-stocks-on-the-move-norwegian-cruise-line-gap-inc-pluristem-therapeutics
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nan
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nan
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Eikon search string for individual stock moves: STXBZ
The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi
The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh
Wall Street rose for the third time in four days on Thursday as the U.S. Federal Reserve rolled out a massive $2.3 trillion program to bolster local governments and businesses hammered by the coronavirus outbreak. .N
At 13:49 ET, the Dow Jones Industrial Average .DJI was up 1.79% at 23,853.48. The S&P 500 .SPX was up 1.88% at 2,801.8 and the Nasdaq Composite .IXIC was up 1.00% at 8,171.802. The top three S&P 500 .PG.INX percentage gainers: ** Norwegian Cruise Line , up 19.2% ** Ventas Inc , up 17.4% ** Gap Inc , up 16.9% The top three S&P 500 .PL.INX percentage losers: ** Fortinet , down 4.5% ** Citrix Systems , down 3.9% ** Nielsen Holdings , down 2.6% The top NYSE .PG.N percentage gainers: ** Independence Contract Drilling , up 249.2% ** Nautilus Inc , up 56% The top three Nasdaq .PG.O percentage gainers: ** CleanSpark Inc , up 106.3% ** Pluristem Therapeutics , up 55.1% ** Tiziana Life Sciences , up 48.8% The top Nasdaq .PL.O percentage loser: ** Nemaura Medical , down 18% ** CleanSpark CLSK.O: up 107.9%
CleanSpark surges on JV to import equipment for hospitals fighting COVID-19 ** Medtronic MDT.N: up 3.1%
Medtronic to see $430 mln revenue boost on ventilator scale up - Wells Fargo ** John Wiley & Sons JWa.N: down 8.2%
John Wiley & Sons sinks as co cuts 2020 outlook on COVID-19 impact ** Anixter International AXE.N: up 1.9%
Anixter International rises on shareholder nod to Wesco takeover ** JPMorgan Chase & Co JPM.N: up 10.4% ** Bank of America Corp BAC.N: up 7.7% ** Wells Fargo & Co WFC.N: up 10.9% ** Citigroup Inc C.N: up 9.1% ** Morgan Stanley MS.N: up 6.2%
U.S. banks soar on $2.3 trillion Fed backstop ** Stitch Fix SFIX.O: up 21.7%
Stitch Fix rebounds 14% after co points to healthy demand ** LightPath Technologies LPTH.O: up 5.8%
LightPath Technologies rises, says no direct impact of COVID-19 on business ** YRC Worldwide YRCW.O: up 24.3%
YRC Worldwide gains after activist investor presses for board changes ** ProPetro PUMP.N: down 0.2%
ProPetro plans up to 20% cut to executive pay, shares jump ** General Motors GM.N: up 6.4% ** Ford Motor Co F.N: up 10.6% ** Fiat Chrysler Automobiles FCAU.N: up 5.2%
Detroit Three rise on Fed stimulus to counter coronavirus crisis ** Baidu BIDU.O: up 2.3%
Baidu expects regulatory scrutiny to hit marketing services revenue ** Cognizant CTSH.O: up 7.2%
Cognizant: Narrows Q1 revenue forecast range ** General Electric Co GE.N: up 1.2%
General Electric Co: Backs Q1 cash flow, shares rise ** Tiziana Life Sciences Plc TLSA.O: up 47.0%
Tiziana Life Sciences Plc: Surges on developing technology for COVID-19 treatment ** United Airlines UAL.O: up 19.9% ** American Airlines AAL.O: up 15.9% ** JetBlue Airways JBLU.O: up 9.3%
U.S. carriers surge in anticipation of "next big thing" - airline aid ** Theravance Biopharma TBPH.O: up 4.6%
Theravance Biopharma: Rises on plan to test lung drug for COVID-19 ** Arista Networks ANET.N: down 2.1%
Arista Networks: Piper Sandler downgrades as coronavirus hits cloud businesses ** iBio IBIO.A: up 6.6%
iBio: Rises on collaboration to develop COVID-19 vaccine ** Yelp Inc YELP.N: down 6.6%
Yelp Inc: Plans to lay off 1,000 workers, furlough another 1,100 ** Big Lots BIG.N: up 23.0%
Big Lots: Jumps on $725 mln sale and leaseback deal; JPM upgrades ** Tupperware Brands TUP.N: up 48.9%
Tupperware Brands: Rises on new CEO's latest executive appointments ** Vapotherm Inc VAPO.N: up 5.2%
Vapotherm Inc: Up after FDA grants "breakthrough device" status for oxygen control system ** Bloomin' Brands BLMN.O: up 24.8%
Bloomin' Brands: Up after co, Jana nominates directors in settlement ** Biocept BIOC.O: up 5.6% Biocept: Jumps on winning Brazilian patent for DNA sequencing system USN ** Biohaven BHVN.N: up 9.2% Biohaven: Rises as FDA grants approval to test migraine drug in COVID-19 patients ** Costco COST.O: down 2.0% Costco's March comp sales falls short of Deutsche Bank expectations ** AMC Entertainment AMC.N: down 10.9% AMC Entertainment: Down as MKM Partners downgrades on bankruptcy fears ** BioNTech BNTX.O: up 2.8% BioNTech: Rises after Pfizer invests $113 mln to develop coronavirus vaccine ** Apache Corp APA.N: up 17.3% ** Exxon Mobil Corp XOM.N: up 3.2% ** Chevron Corp CVX.N: up 1.7% ** Whiting Petroleum WLL.N: up 6.6% ** Devon Energy DVN.N: up 7.2%
** Diamondback Energy FANG.O: up 1.3% ** Occidental Petroleum OXY.N: up 6.6% ** Hess Corp HES.N: up 7.5% ** Marathon Oil MRO.N: up 10.1% ** EOG Resources EOG.N: down 0.2% ** ConocoPhillips COP.N: up 1.3% ** Cimarex Energy XEC.N: up 6.6% ** Concho Resources CXO.N: up 2.9% ** Diamond Offshore Drilling DO.N: up 5.8% ** Halliburton HAL.N: up 3.4% ** Schlumberger NV SLB.N: up 3.0% ** Marathon Petroleum MPC.N: up 11.2% ** Phillips 66 PSX.N: up 1.0% ** Valero Energy VLO.N: down 0.5% Oil stocks rise on hopes OPEC+ will agree to output cuts ** US Well Services USWS.O: up 159.6% US Well Services: Gains on long-term electric frac contract with EQT ** Walt Disney Co DIS.N: up 5.3% Disney+ 50 mln subscriber growth impressive - JPM ** Zimmer Biomet ZBH.N: up 1.3% Zimmer Biomet: Evercore downgrades on slow recovery for orthopedics post COVID-19 ** Medtronic Plc MDT.N: up 3.1% Medtronic Plc: Well-positioned to weather COVID-19 storm - J.P.Morgan ** Starbucks SBUX.O: up 2.8% Starbucks: Falls on coffee chain's projections of COVID-19 impact ** Microchip Technology MCHP.O: up 4.2% Microchip Technology rises on strong March-quarter sales
The 11 major S&P 500 sectors:
Communication Services
.SPLRCL
up 0.90%
Consumer Discretionary
.SPLRCD
up 1.76%
Consumer Staples
.SPLRCS
up 1.96%
Energy
.SPNY
up 1.56%
Financial
.SPSY
up 5.35%
Health
.SPXHC
up 0.63%
Industrial
.SPLRCI
up 2.31%
Information Technology
.SPLRCT
up 0.50%
Materials
.SPLRCM
up 4.29%
Real Estate
.SPLRCR
up 4.45%
Utilities
.SPLRCU
up 5.05%
(Compiled by Sanjana Shivdas in Bengaluru)
((SanjanaSitara.Shivdas@thomsonreuters.com; within U.S. +1 646 223 8780, outside U.S. +91 80 6749 1642; Twitter: @SanjanaShivdas;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The top three S&P 500 .PG.INX percentage gainers: ** Norwegian Cruise Line , up 19.2% ** Ventas Inc , up 17.4% ** Gap Inc , up 16.9% The top three S&P 500 .PL.INX percentage losers: ** Fortinet , down 4.5% ** Citrix Systems , down 3.9% ** Nielsen Holdings , down 2.6% The top NYSE .PG.N percentage gainers: ** Independence Contract Drilling , up 249.2% ** Nautilus Inc , up 56% The top three Nasdaq .PG.O percentage gainers: ** CleanSpark Inc , up 106.3% ** Pluristem Therapeutics , up 55.1% ** Tiziana Life Sciences , up 48.8% The top Nasdaq .PL.O percentage loser: ** Nemaura Medical , down 18% ** CleanSpark CLSK.O: up 107.9% CleanSpark surges on JV to import equipment for hospitals fighting COVID-19 ** Medtronic MDT.N: up 3.1% Medtronic to see $430 mln revenue boost on ventilator scale up - Wells Fargo ** John Wiley & Sons JWa.N: down 8.2% John Wiley & Sons sinks as co cuts 2020 outlook on COVID-19 impact ** Anixter International AXE.N: up 1.9% Anixter International rises on shareholder nod to Wesco takeover ** JPMorgan Chase & Co JPM.N: up 10.4% ** Bank of America Corp BAC.N: up 7.7% ** Wells Fargo & Co WFC.N: up 10.9% ** Citigroup Inc C.N: up 9.1% ** Morgan Stanley MS.N: up 6.2% U.S. banks soar on $2.3 trillion Fed backstop ** Stitch Fix SFIX.O: up 21.7% Stitch Fix rebounds 14% after co points to healthy demand ** LightPath Technologies LPTH.O: up 5.8% LightPath Technologies rises, says no direct impact of COVID-19 on business ** YRC Worldwide YRCW.O: up 24.3% YRC Worldwide gains after activist investor presses for board changes ** ProPetro PUMP.N: down 0.2% ProPetro plans up to 20% cut to executive pay, shares jump ** General Motors GM.N: up 6.4% ** Ford Motor Co F.N: up 10.6% ** Fiat Chrysler Automobiles FCAU.N: up 5.2% Detroit Three rise on Fed stimulus to counter coronavirus crisis ** Baidu BIDU.O: up 2.3% Baidu expects regulatory scrutiny to hit marketing services revenue ** Cognizant CTSH.O: up 7.2% Cognizant: Narrows Q1 revenue forecast range ** General Electric Co GE.N: up 1.2% General Electric Co: Backs Q1 cash flow, shares rise ** Tiziana Life Sciences Plc TLSA.O: up 47.0% Tiziana Life Sciences Plc: Surges on developing technology for COVID-19 treatment ** United Airlines UAL.O: up 19.9% ** American Airlines AAL.O: up 15.9% ** JetBlue Airways JBLU.O: up 9.3% U.S. carriers surge in anticipation of "next big thing" - airline aid ** Theravance Biopharma TBPH.O: up 4.6% Theravance Biopharma: Rises on plan to test lung drug for COVID-19 ** Arista Networks ANET.N: down 2.1% Arista Networks: Piper Sandler downgrades as coronavirus hits cloud businesses ** iBio IBIO.A: up 6.6% iBio: Rises on collaboration to develop COVID-19 vaccine ** Yelp Inc YELP.N: down 6.6% Yelp Inc: Plans to lay off 1,000 workers, furlough another 1,100 ** Big Lots BIG.N: up 23.0% Big Lots: Jumps on $725 mln sale and leaseback deal; JPM upgrades ** Tupperware Brands TUP.N: up 48.9% Tupperware Brands: Rises on new CEO's latest executive appointments ** Vapotherm Inc VAPO.N: up 5.2% Vapotherm Inc: Up after FDA grants "breakthrough device" status for oxygen control system ** Bloomin' Brands BLMN.O: up 24.8% Bloomin' Brands: Up after co, Jana nominates directors in settlement ** Biocept BIOC.O: up 5.6% Biocept: Jumps on winning Brazilian patent for DNA sequencing system USN ** Biohaven BHVN.N: up 9.2% Biohaven: Rises as FDA grants approval to test migraine drug in COVID-19 patients ** Costco COST.O: down 2.0% Costco's March comp sales falls short of Deutsche Bank expectations ** AMC Entertainment AMC.N: down 10.9% AMC Entertainment: Down as MKM Partners downgrades on bankruptcy fears ** BioNTech BNTX.O: up 2.8% BioNTech: Rises after Pfizer invests $113 mln to develop coronavirus vaccine ** Apache Corp APA.N: up 17.3% ** Exxon Mobil Corp XOM.N: up 3.2% ** Chevron Corp CVX.N: up 1.7% ** Whiting Petroleum WLL.N: up 6.6% ** Devon Energy DVN.N: up 7.2% ** Diamondback Energy FANG.O: up 1.3% ** Occidental Petroleum OXY.N: up 6.6% ** Hess Corp HES.N: up 7.5% ** Marathon Oil MRO.N: up 10.1% ** EOG Resources EOG.N: down 0.2% ** ConocoPhillips COP.N: up 1.3% ** Cimarex Energy XEC.N: up 6.6% ** Concho Resources CXO.N: up 2.9% ** Diamond Offshore Drilling DO.N: up 5.8% ** Halliburton HAL.N: up 3.4% ** Schlumberger NV SLB.N: up 3.0% ** Marathon Petroleum MPC.N: up 11.2% ** Phillips 66 PSX.N: up 1.0% ** Valero Energy VLO.N: down 0.5% Oil stocks rise on hopes OPEC+ will agree to output cuts ** US Well Services USWS.O: up 159.6% US Well Services: Gains on long-term electric frac contract with EQT ** Walt Disney Co DIS.N: up 5.3% Disney+ 50 mln subscriber growth impressive - JPM ** Zimmer Biomet ZBH.N: up 1.3% Zimmer Biomet: Evercore downgrades on slow recovery for orthopedics post COVID-19 ** Medtronic Plc MDT.N: up 3.1% Medtronic Plc: Well-positioned to weather COVID-19 storm - J.P.Morgan ** Starbucks SBUX.O: up 2.8% Starbucks: Falls on coffee chain's projections of COVID-19 impact ** Microchip Technology MCHP.O: up 4.2% Microchip Technology rises on strong March-quarter sales The 11 major S&P 500 sectors: Communication Services Eikon search string for individual stock moves: STXBZ The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh Wall Street rose for the third time in four days on Thursday as the U.S. Federal Reserve rolled out a massive $2.3 trillion program to bolster local governments and businesses hammered by the coronavirus outbreak. up 5.05% (Compiled by Sanjana Shivdas in Bengaluru) ((SanjanaSitara.Shivdas@thomsonreuters.com; within U.S. +1 646 223 8780, outside U.S. +91 80 6749 1642; Twitter: @SanjanaShivdas;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The top three S&P 500 .PG.INX percentage gainers: ** Norwegian Cruise Line , up 19.2% ** Ventas Inc , up 17.4% ** Gap Inc , up 16.9% The top three S&P 500 .PL.INX percentage losers: ** Fortinet , down 4.5% ** Citrix Systems , down 3.9% ** Nielsen Holdings , down 2.6% The top NYSE .PG.N percentage gainers: ** Independence Contract Drilling , up 249.2% ** Nautilus Inc , up 56% The top three Nasdaq .PG.O percentage gainers: ** CleanSpark Inc , up 106.3% ** Pluristem Therapeutics , up 55.1% ** Tiziana Life Sciences , up 48.8% The top Nasdaq .PL.O percentage loser: ** Nemaura Medical , down 18% ** CleanSpark CLSK.O: up 107.9% CleanSpark surges on JV to import equipment for hospitals fighting COVID-19 ** Medtronic MDT.N: up 3.1% Medtronic to see $430 mln revenue boost on ventilator scale up - Wells Fargo ** John Wiley & Sons JWa.N: down 8.2% John Wiley & Sons sinks as co cuts 2020 outlook on COVID-19 impact ** Anixter International AXE.N: up 1.9% Anixter International rises on shareholder nod to Wesco takeover ** JPMorgan Chase & Co JPM.N: up 10.4% ** Bank of America Corp BAC.N: up 7.7% ** Wells Fargo & Co WFC.N: up 10.9% ** Citigroup Inc C.N: up 9.1% ** Morgan Stanley MS.N: up 6.2% U.S. banks soar on $2.3 trillion Fed backstop ** Stitch Fix SFIX.O: up 21.7% Stitch Fix rebounds 14% after co points to healthy demand ** LightPath Technologies LPTH.O: up 5.8% LightPath Technologies rises, says no direct impact of COVID-19 on business ** YRC Worldwide YRCW.O: up 24.3% YRC Worldwide gains after activist investor presses for board changes ** ProPetro PUMP.N: down 0.2% ProPetro plans up to 20% cut to executive pay, shares jump ** General Motors GM.N: up 6.4% ** Ford Motor Co F.N: up 10.6% ** Fiat Chrysler Automobiles FCAU.N: up 5.2% Detroit Three rise on Fed stimulus to counter coronavirus crisis ** Baidu BIDU.O: up 2.3% Baidu expects regulatory scrutiny to hit marketing services revenue ** Cognizant CTSH.O: up 7.2% Cognizant: Narrows Q1 revenue forecast range ** General Electric Co GE.N: up 1.2% General Electric Co: Backs Q1 cash flow, shares rise ** Tiziana Life Sciences Plc TLSA.O: up 47.0% Tiziana Life Sciences Plc: Surges on developing technology for COVID-19 treatment ** United Airlines UAL.O: up 19.9% ** American Airlines AAL.O: up 15.9% ** JetBlue Airways JBLU.O: up 9.3% U.S. carriers surge in anticipation of "next big thing" - airline aid ** Theravance Biopharma TBPH.O: up 4.6% Theravance Biopharma: Rises on plan to test lung drug for COVID-19 ** Arista Networks ANET.N: down 2.1% Arista Networks: Piper Sandler downgrades as coronavirus hits cloud businesses ** iBio IBIO.A: up 6.6% iBio: Rises on collaboration to develop COVID-19 vaccine ** Yelp Inc YELP.N: down 6.6% Yelp Inc: Plans to lay off 1,000 workers, furlough another 1,100 ** Big Lots BIG.N: up 23.0% Big Lots: Jumps on $725 mln sale and leaseback deal; JPM upgrades ** Tupperware Brands TUP.N: up 48.9% Tupperware Brands: Rises on new CEO's latest executive appointments ** Vapotherm Inc VAPO.N: up 5.2% Vapotherm Inc: Up after FDA grants "breakthrough device" status for oxygen control system ** Bloomin' Brands BLMN.O: up 24.8% Bloomin' Brands: Up after co, Jana nominates directors in settlement ** Biocept BIOC.O: up 5.6% Biocept: Jumps on winning Brazilian patent for DNA sequencing system USN ** Biohaven BHVN.N: up 9.2% Biohaven: Rises as FDA grants approval to test migraine drug in COVID-19 patients ** Costco COST.O: down 2.0% Costco's March comp sales falls short of Deutsche Bank expectations ** AMC Entertainment AMC.N: down 10.9% AMC Entertainment: Down as MKM Partners downgrades on bankruptcy fears ** BioNTech BNTX.O: up 2.8% BioNTech: Rises after Pfizer invests $113 mln to develop coronavirus vaccine ** Apache Corp APA.N: up 17.3% ** Exxon Mobil Corp XOM.N: up 3.2% ** Chevron Corp CVX.N: up 1.7% ** Whiting Petroleum WLL.N: up 6.6% ** Devon Energy DVN.N: up 7.2% ** Diamondback Energy FANG.O: up 1.3% ** Occidental Petroleum OXY.N: up 6.6% ** Hess Corp HES.N: up 7.5% ** Marathon Oil MRO.N: up 10.1% ** EOG Resources EOG.N: down 0.2% ** ConocoPhillips COP.N: up 1.3% ** Cimarex Energy XEC.N: up 6.6% ** Concho Resources CXO.N: up 2.9% ** Diamond Offshore Drilling DO.N: up 5.8% ** Halliburton HAL.N: up 3.4% ** Schlumberger NV SLB.N: up 3.0% ** Marathon Petroleum MPC.N: up 11.2% ** Phillips 66 PSX.N: up 1.0% ** Valero Energy VLO.N: down 0.5% Oil stocks rise on hopes OPEC+ will agree to output cuts ** US Well Services USWS.O: up 159.6% US Well Services: Gains on long-term electric frac contract with EQT ** Walt Disney Co DIS.N: up 5.3% Disney+ 50 mln subscriber growth impressive - JPM ** Zimmer Biomet ZBH.N: up 1.3% Zimmer Biomet: Evercore downgrades on slow recovery for orthopedics post COVID-19 ** Medtronic Plc MDT.N: up 3.1% Medtronic Plc: Well-positioned to weather COVID-19 storm - J.P.Morgan ** Starbucks SBUX.O: up 2.8% Starbucks: Falls on coffee chain's projections of COVID-19 impact ** Microchip Technology MCHP.O: up 4.2% Microchip Technology rises on strong March-quarter sales The 11 major S&P 500 sectors: Communication Services Eikon search string for individual stock moves: STXBZ The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh Wall Street rose for the third time in four days on Thursday as the U.S. Federal Reserve rolled out a massive $2.3 trillion program to bolster local governments and businesses hammered by the coronavirus outbreak. up 5.05% (Compiled by Sanjana Shivdas in Bengaluru) ((SanjanaSitara.Shivdas@thomsonreuters.com; within U.S. +1 646 223 8780, outside U.S. +91 80 6749 1642; Twitter: @SanjanaShivdas;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The top three S&P 500 .PG.INX percentage gainers: ** Norwegian Cruise Line , up 19.2% ** Ventas Inc , up 17.4% ** Gap Inc , up 16.9% The top three S&P 500 .PL.INX percentage losers: ** Fortinet , down 4.5% ** Citrix Systems , down 3.9% ** Nielsen Holdings , down 2.6% The top NYSE .PG.N percentage gainers: ** Independence Contract Drilling , up 249.2% ** Nautilus Inc , up 56% The top three Nasdaq .PG.O percentage gainers: ** CleanSpark Inc , up 106.3% ** Pluristem Therapeutics , up 55.1% ** Tiziana Life Sciences , up 48.8% The top Nasdaq .PL.O percentage loser: ** Nemaura Medical , down 18% ** CleanSpark CLSK.O: up 107.9% CleanSpark surges on JV to import equipment for hospitals fighting COVID-19 ** Medtronic MDT.N: up 3.1% Medtronic to see $430 mln revenue boost on ventilator scale up - Wells Fargo ** John Wiley & Sons JWa.N: down 8.2% John Wiley & Sons sinks as co cuts 2020 outlook on COVID-19 impact ** Anixter International AXE.N: up 1.9% Anixter International rises on shareholder nod to Wesco takeover ** JPMorgan Chase & Co JPM.N: up 10.4% ** Bank of America Corp BAC.N: up 7.7% ** Wells Fargo & Co WFC.N: up 10.9% ** Citigroup Inc C.N: up 9.1% ** Morgan Stanley MS.N: up 6.2% U.S. banks soar on $2.3 trillion Fed backstop ** Stitch Fix SFIX.O: up 21.7% Stitch Fix rebounds 14% after co points to healthy demand ** LightPath Technologies LPTH.O: up 5.8% LightPath Technologies rises, says no direct impact of COVID-19 on business ** YRC Worldwide YRCW.O: up 24.3% YRC Worldwide gains after activist investor presses for board changes ** ProPetro PUMP.N: down 0.2% ProPetro plans up to 20% cut to executive pay, shares jump ** General Motors GM.N: up 6.4% ** Ford Motor Co F.N: up 10.6% ** Fiat Chrysler Automobiles FCAU.N: up 5.2% Detroit Three rise on Fed stimulus to counter coronavirus crisis ** Baidu BIDU.O: up 2.3% Baidu expects regulatory scrutiny to hit marketing services revenue ** Cognizant CTSH.O: up 7.2% Cognizant: Narrows Q1 revenue forecast range ** General Electric Co GE.N: up 1.2% General Electric Co: Backs Q1 cash flow, shares rise ** Tiziana Life Sciences Plc TLSA.O: up 47.0% Tiziana Life Sciences Plc: Surges on developing technology for COVID-19 treatment ** United Airlines UAL.O: up 19.9% ** American Airlines AAL.O: up 15.9% ** JetBlue Airways JBLU.O: up 9.3% U.S. carriers surge in anticipation of "next big thing" - airline aid ** Theravance Biopharma TBPH.O: up 4.6% Theravance Biopharma: Rises on plan to test lung drug for COVID-19 ** Arista Networks ANET.N: down 2.1% Arista Networks: Piper Sandler downgrades as coronavirus hits cloud businesses ** iBio IBIO.A: up 6.6% iBio: Rises on collaboration to develop COVID-19 vaccine ** Yelp Inc YELP.N: down 6.6% Yelp Inc: Plans to lay off 1,000 workers, furlough another 1,100 ** Big Lots BIG.N: up 23.0% Big Lots: Jumps on $725 mln sale and leaseback deal; JPM upgrades ** Tupperware Brands TUP.N: up 48.9% Tupperware Brands: Rises on new CEO's latest executive appointments ** Vapotherm Inc VAPO.N: up 5.2% Vapotherm Inc: Up after FDA grants "breakthrough device" status for oxygen control system ** Bloomin' Brands BLMN.O: up 24.8% Bloomin' Brands: Up after co, Jana nominates directors in settlement ** Biocept BIOC.O: up 5.6% Biocept: Jumps on winning Brazilian patent for DNA sequencing system USN ** Biohaven BHVN.N: up 9.2% Biohaven: Rises as FDA grants approval to test migraine drug in COVID-19 patients ** Costco COST.O: down 2.0% Costco's March comp sales falls short of Deutsche Bank expectations ** AMC Entertainment AMC.N: down 10.9% AMC Entertainment: Down as MKM Partners downgrades on bankruptcy fears ** BioNTech BNTX.O: up 2.8% BioNTech: Rises after Pfizer invests $113 mln to develop coronavirus vaccine ** Apache Corp APA.N: up 17.3% ** Exxon Mobil Corp XOM.N: up 3.2% ** Chevron Corp CVX.N: up 1.7% ** Whiting Petroleum WLL.N: up 6.6% ** Devon Energy DVN.N: up 7.2% ** Diamondback Energy FANG.O: up 1.3% ** Occidental Petroleum OXY.N: up 6.6% ** Hess Corp HES.N: up 7.5% ** Marathon Oil MRO.N: up 10.1% ** EOG Resources EOG.N: down 0.2% ** ConocoPhillips COP.N: up 1.3% ** Cimarex Energy XEC.N: up 6.6% ** Concho Resources CXO.N: up 2.9% ** Diamond Offshore Drilling DO.N: up 5.8% ** Halliburton HAL.N: up 3.4% ** Schlumberger NV SLB.N: up 3.0% ** Marathon Petroleum MPC.N: up 11.2% ** Phillips 66 PSX.N: up 1.0% ** Valero Energy VLO.N: down 0.5% Oil stocks rise on hopes OPEC+ will agree to output cuts ** US Well Services USWS.O: up 159.6% US Well Services: Gains on long-term electric frac contract with EQT ** Walt Disney Co DIS.N: up 5.3% Disney+ 50 mln subscriber growth impressive - JPM ** Zimmer Biomet ZBH.N: up 1.3% Zimmer Biomet: Evercore downgrades on slow recovery for orthopedics post COVID-19 ** Medtronic Plc MDT.N: up 3.1% Medtronic Plc: Well-positioned to weather COVID-19 storm - J.P.Morgan ** Starbucks SBUX.O: up 2.8% Starbucks: Falls on coffee chain's projections of COVID-19 impact ** Microchip Technology MCHP.O: up 4.2% Microchip Technology rises on strong March-quarter sales The 11 major S&P 500 sectors: Communication Services .N At 13:49 ET, the Dow Jones Industrial Average .DJI was up 1.79% at 23,853.48. up 0.90% Consumer Discretionary
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The top three S&P 500 .PG.INX percentage gainers: ** Norwegian Cruise Line , up 19.2% ** Ventas Inc , up 17.4% ** Gap Inc , up 16.9% The top three S&P 500 .PL.INX percentage losers: ** Fortinet , down 4.5% ** Citrix Systems , down 3.9% ** Nielsen Holdings , down 2.6% The top NYSE .PG.N percentage gainers: ** Independence Contract Drilling , up 249.2% ** Nautilus Inc , up 56% The top three Nasdaq .PG.O percentage gainers: ** CleanSpark Inc , up 106.3% ** Pluristem Therapeutics , up 55.1% ** Tiziana Life Sciences , up 48.8% The top Nasdaq .PL.O percentage loser: ** Nemaura Medical , down 18% ** CleanSpark CLSK.O: up 107.9% CleanSpark surges on JV to import equipment for hospitals fighting COVID-19 ** Medtronic MDT.N: up 3.1% Medtronic to see $430 mln revenue boost on ventilator scale up - Wells Fargo ** John Wiley & Sons JWa.N: down 8.2% John Wiley & Sons sinks as co cuts 2020 outlook on COVID-19 impact ** Anixter International AXE.N: up 1.9% Anixter International rises on shareholder nod to Wesco takeover ** JPMorgan Chase & Co JPM.N: up 10.4% ** Bank of America Corp BAC.N: up 7.7% ** Wells Fargo & Co WFC.N: up 10.9% ** Citigroup Inc C.N: up 9.1% ** Morgan Stanley MS.N: up 6.2% U.S. banks soar on $2.3 trillion Fed backstop ** Stitch Fix SFIX.O: up 21.7% Stitch Fix rebounds 14% after co points to healthy demand ** LightPath Technologies LPTH.O: up 5.8% LightPath Technologies rises, says no direct impact of COVID-19 on business ** YRC Worldwide YRCW.O: up 24.3% YRC Worldwide gains after activist investor presses for board changes ** ProPetro PUMP.N: down 0.2% ProPetro plans up to 20% cut to executive pay, shares jump ** General Motors GM.N: up 6.4% ** Ford Motor Co F.N: up 10.6% ** Fiat Chrysler Automobiles FCAU.N: up 5.2% Detroit Three rise on Fed stimulus to counter coronavirus crisis ** Baidu BIDU.O: up 2.3% Baidu expects regulatory scrutiny to hit marketing services revenue ** Cognizant CTSH.O: up 7.2% Cognizant: Narrows Q1 revenue forecast range ** General Electric Co GE.N: up 1.2% General Electric Co: Backs Q1 cash flow, shares rise ** Tiziana Life Sciences Plc TLSA.O: up 47.0% Tiziana Life Sciences Plc: Surges on developing technology for COVID-19 treatment ** United Airlines UAL.O: up 19.9% ** American Airlines AAL.O: up 15.9% ** JetBlue Airways JBLU.O: up 9.3% U.S. carriers surge in anticipation of "next big thing" - airline aid ** Theravance Biopharma TBPH.O: up 4.6% Theravance Biopharma: Rises on plan to test lung drug for COVID-19 ** Arista Networks ANET.N: down 2.1% Arista Networks: Piper Sandler downgrades as coronavirus hits cloud businesses ** iBio IBIO.A: up 6.6% iBio: Rises on collaboration to develop COVID-19 vaccine ** Yelp Inc YELP.N: down 6.6% Yelp Inc: Plans to lay off 1,000 workers, furlough another 1,100 ** Big Lots BIG.N: up 23.0% Big Lots: Jumps on $725 mln sale and leaseback deal; JPM upgrades ** Tupperware Brands TUP.N: up 48.9% Tupperware Brands: Rises on new CEO's latest executive appointments ** Vapotherm Inc VAPO.N: up 5.2% Vapotherm Inc: Up after FDA grants "breakthrough device" status for oxygen control system ** Bloomin' Brands BLMN.O: up 24.8% Bloomin' Brands: Up after co, Jana nominates directors in settlement ** Biocept BIOC.O: up 5.6% Biocept: Jumps on winning Brazilian patent for DNA sequencing system USN ** Biohaven BHVN.N: up 9.2% Biohaven: Rises as FDA grants approval to test migraine drug in COVID-19 patients ** Costco COST.O: down 2.0% Costco's March comp sales falls short of Deutsche Bank expectations ** AMC Entertainment AMC.N: down 10.9% AMC Entertainment: Down as MKM Partners downgrades on bankruptcy fears ** BioNTech BNTX.O: up 2.8% BioNTech: Rises after Pfizer invests $113 mln to develop coronavirus vaccine ** Apache Corp APA.N: up 17.3% ** Exxon Mobil Corp XOM.N: up 3.2% ** Chevron Corp CVX.N: up 1.7% ** Whiting Petroleum WLL.N: up 6.6% ** Devon Energy DVN.N: up 7.2% ** Diamondback Energy FANG.O: up 1.3% ** Occidental Petroleum OXY.N: up 6.6% ** Hess Corp HES.N: up 7.5% ** Marathon Oil MRO.N: up 10.1% ** EOG Resources EOG.N: down 0.2% ** ConocoPhillips COP.N: up 1.3% ** Cimarex Energy XEC.N: up 6.6% ** Concho Resources CXO.N: up 2.9% ** Diamond Offshore Drilling DO.N: up 5.8% ** Halliburton HAL.N: up 3.4% ** Schlumberger NV SLB.N: up 3.0% ** Marathon Petroleum MPC.N: up 11.2% ** Phillips 66 PSX.N: up 1.0% ** Valero Energy VLO.N: down 0.5% Oil stocks rise on hopes OPEC+ will agree to output cuts ** US Well Services USWS.O: up 159.6% US Well Services: Gains on long-term electric frac contract with EQT ** Walt Disney Co DIS.N: up 5.3% Disney+ 50 mln subscriber growth impressive - JPM ** Zimmer Biomet ZBH.N: up 1.3% Zimmer Biomet: Evercore downgrades on slow recovery for orthopedics post COVID-19 ** Medtronic Plc MDT.N: up 3.1% Medtronic Plc: Well-positioned to weather COVID-19 storm - J.P.Morgan ** Starbucks SBUX.O: up 2.8% Starbucks: Falls on coffee chain's projections of COVID-19 impact ** Microchip Technology MCHP.O: up 4.2% Microchip Technology rises on strong March-quarter sales The 11 major S&P 500 sectors: Communication Services Eikon search string for individual stock moves: STXBZ The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh Wall Street rose for the third time in four days on Thursday as the U.S. Federal Reserve rolled out a massive $2.3 trillion program to bolster local governments and businesses hammered by the coronavirus outbreak. .N At 13:49 ET, the Dow Jones Industrial Average .DJI was up 1.79% at 23,853.48.
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6074.0
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2020-04-09 00:00:00 UTC
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Why Shares of Travel Companies Are Up Today
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AAL
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https://www.nasdaq.com/articles/why-shares-of-travel-companies-are-up-today-2020-04-09
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nan
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nan
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What happened
Shares of travel-related stocks got a boost Thursday on fresh comments that the government was committed to stabilizing the airline sector, and optimism that economic activity could begin to normalize as soon as May.
Shares of Sabre (NASDAQ: SABR), which makes most of its money off of the airlines, climbed nearly 20% on Thursday, while auto rental specialists Avis Budget Group (NASDAQ: CAR) and Hertz Global Holdings (NYSE: HTZ) jumped as high as 21% and 15%, respectively. Travel-related businesses including Tripadvisor (NASDAQ: TRIP) and Expedia Group (NASDAQ: EXPE) also got a lift, with each company topping out at about 9% mid-day.
The stocks all fell back some as the day went on, following the trend of the broader market, but clearly after weeks of selling there is a fresh sense of optimism surrounding the travel sector.
So what
These companies are in different parts of the travel business, but all of them need normal travel patterns and healthy airlines to thrive. Sabre, a one-time subsidiary of American Airlines Group, runs the internal reservation and ticketing operations for a number of airlines, while Tripadvisor and Expedia make their money off of consumers planning trips. Avis Budget and Hertz provide autos upon arrival.
Image source: Getty Images.
The stocks on Thursday were climbing alongside airline shares, which got a lift from comments made by Treasury Secretary Steven Mnuchin that assistance for the airlines was a top priority. Mnuchin also said the White House could begin to restart the economy as soon as May if there's ample evidence that the worst of the pandemic is behind us.
The rallies are modest compared to how far these stocks have fallen year to date: TripAdvisor is the best performer in 2020, down "only" 39.9%, while Sabre is off 68%. But after a miserable March dominated by panic-selling, even a hint of optimism is a refreshing change in sentiment for these travel shares.
Now what
Investors should be mindful that the hopeful tone reflected in the stock prices has gotten ahead of the results on the ground. The pandemic is still taking hundreds of lives daily in the U.S., and much of the U.S. economy is expected to remain in shelter-in-place mode for a minimum of weeks to come. As we emerge from the crisis it is difficult to think the economy will rebound immediately, and hard to imagine a huge surge of vacationers making last-minute summer plans.
The odds are improving by the day that the airlines will survive this crisis, which is good news for the massive number of ancillary travel companies that coexist alongside air carriers. But the recovery is likely to be slow and uneven, and there is nothing to say the March sell-off won't be repeated if the pandemic takes a turn for the worse or we see further signs the economy has collapsed.
It's just as important for investors to remain grounded during rallies as it was not to panic during the sell-off.
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Lou Whiteman has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends TripAdvisor. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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What happened Shares of travel-related stocks got a boost Thursday on fresh comments that the government was committed to stabilizing the airline sector, and optimism that economic activity could begin to normalize as soon as May. The stocks all fell back some as the day went on, following the trend of the broader market, but clearly after weeks of selling there is a fresh sense of optimism surrounding the travel sector. The odds are improving by the day that the airlines will survive this crisis, which is good news for the massive number of ancillary travel companies that coexist alongside air carriers.
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Shares of Sabre (NASDAQ: SABR), which makes most of its money off of the airlines, climbed nearly 20% on Thursday, while auto rental specialists Avis Budget Group (NASDAQ: CAR) and Hertz Global Holdings (NYSE: HTZ) jumped as high as 21% and 15%, respectively. Travel-related businesses including Tripadvisor (NASDAQ: TRIP) and Expedia Group (NASDAQ: EXPE) also got a lift, with each company topping out at about 9% mid-day. The stocks on Thursday were climbing alongside airline shares, which got a lift from comments made by Treasury Secretary Steven Mnuchin that assistance for the airlines was a top priority.
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Shares of Sabre (NASDAQ: SABR), which makes most of its money off of the airlines, climbed nearly 20% on Thursday, while auto rental specialists Avis Budget Group (NASDAQ: CAR) and Hertz Global Holdings (NYSE: HTZ) jumped as high as 21% and 15%, respectively. The stocks on Thursday were climbing alongside airline shares, which got a lift from comments made by Treasury Secretary Steven Mnuchin that assistance for the airlines was a top priority. See the 10 stocks *Stock Advisor returns as of March 18, 2020 Lou Whiteman has no position in any of the stocks mentioned.
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Shares of Sabre (NASDAQ: SABR), which makes most of its money off of the airlines, climbed nearly 20% on Thursday, while auto rental specialists Avis Budget Group (NASDAQ: CAR) and Hertz Global Holdings (NYSE: HTZ) jumped as high as 21% and 15%, respectively. The pandemic is still taking hundreds of lives daily in the U.S., and much of the U.S. economy is expected to remain in shelter-in-place mode for a minimum of weeks to come. It's just as important for investors to remain grounded during rallies as it was not to panic during the sell-off.
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6075.0
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2020-04-09 00:00:00 UTC
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Trump says airlines could receive grant details this weekend; sources say around 275 applied
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AAL
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https://www.nasdaq.com/articles/trump-says-airlines-could-receive-grant-details-this-weekend-sources-say-around-275
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By David Shepardson and Tracy Rucinski
WASHINGTON/CHICAGO, April 9 (Reuters) - U.S. President Donald Trump said on Thursday that airlines could receive details this weekend about the terms of a $32 billion payroll grant to offset the impact of the coronavirus outbreak, which sources told Reuters has received around 275 applicants.
"We'll be probably putting out a proposal and giving them some of the very powerful details over the weekend. It's moving along quickly. The airline business has been hit very hard," Trump said following a briefing with Treasury Secretary Steve Mnuchin.
"I think it's going to be a very acceptable package. It's a very big package," Trump said, noting it will be "good for the airlines."
Under the $2.3 trillion CARES Act, passenger airlines are eligible for $25 billion in cash grants for payroll; cargo carriers can get $4 billion while airport contractors like caterers and airplane cleaners are eligible for $3 billion.
Earlier, Mnuchin told CNBC that the airline package would be the next "big thing we'll be rolling out" as part of the CARES Act, with preliminary information starting on Friday.
"And it is our objective to make sure, as I've said, this is not a bailout, but that airlines have the liquidity to keep their workers in place," Mnuchin said.
The six largest U.S. airlines -- American Airlines Group AAL.O, United Airlines UAL.O, Delta Air Lines DAL.N Southwest Airlines Co LUV.N, JetBlue Airways Corp JBLU.N and Alaska Airlines ALK.N -- are expected to get around 90% of the package, people briefed on the matter told Reuters. Treasury received around 275 applicants for the aviation grants, the people said.
Treasury could require companies to repay a portion of the amount at a low interest rate that could increase after five years, and is likely to demand warrants for at least some carriers, they said.
The terms of any warrants are unclear and final numbers could still change as talks with the airlines continue.
Mnuchin has repeatedly said taxpayers will be compensated for the grants, but airline unions and some Democrats have warned that demanding equity or warrants would defeat the purpose of the act and lead to layoffs and bankruptcies.
"Any financial instrument on a grant means it’s no longer a grant," said Association of Flight Attendants President Sara Nelson, who led the idea that the grants go specifically to workers' payroll. "Equity and other terms on loans is fine and expected. But let's not confuse the two."
Airlines are also eligible for a $25 billion loan package.
The Southwest pilots union said it expects to hear next week whether airlines will accept Treasury's proposed grant terms.
Airlines are eligible for cash equal to the compensation paid to employees from April 1-Sept. 30, 2019, but Treasury may not pay the full amount of grants those airlines seek because the value of requests it plans to approve exceeded $25 billion, the sources said.
As talks have gone on, Treasury asked airlines seeking government payroll support to provide additional detailed information on capital structure, liquidity and loyalty programs, people briefed on the matter told Reuters Wednesday.
Treasury has also asked for details such as airlines' daily cash burn rates, when they expect to run out of cash and their best estimates for projected wages and benefits between April 1 and Sept. 30, they said.
Treasury has also requested information on the value and historical cash flow of airlines' loyalty programs, as well as an overview of all unencumbered assets such as aircraft, engines and spare parts.
Airlines keep slashing flights as travel demand has dwindled to less than 5% of normal levels. On Wednesday, the number of people screened at U.S. airports fell to a new low of 94,931, down from a normal 2.23 million.
(Reporting by David Shepardson and Tracy Rucinski; Additional reporting by Doina Chiacu and Steve Holland; Editing by David Gregorio and Daniel Wallis)
((David.Shepardson@thomsonreuters.com; 2028988324;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The six largest U.S. airlines -- American Airlines Group AAL.O, United Airlines UAL.O, Delta Air Lines DAL.N Southwest Airlines Co LUV.N, JetBlue Airways Corp JBLU.N and Alaska Airlines ALK.N -- are expected to get around 90% of the package, people briefed on the matter told Reuters. Mnuchin has repeatedly said taxpayers will be compensated for the grants, but airline unions and some Democrats have warned that demanding equity or warrants would defeat the purpose of the act and lead to layoffs and bankruptcies. As talks have gone on, Treasury asked airlines seeking government payroll support to provide additional detailed information on capital structure, liquidity and loyalty programs, people briefed on the matter told Reuters Wednesday.
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The six largest U.S. airlines -- American Airlines Group AAL.O, United Airlines UAL.O, Delta Air Lines DAL.N Southwest Airlines Co LUV.N, JetBlue Airways Corp JBLU.N and Alaska Airlines ALK.N -- are expected to get around 90% of the package, people briefed on the matter told Reuters. By David Shepardson and Tracy Rucinski WASHINGTON/CHICAGO, April 9 (Reuters) - U.S. President Donald Trump said on Thursday that airlines could receive details this weekend about the terms of a $32 billion payroll grant to offset the impact of the coronavirus outbreak, which sources told Reuters has received around 275 applicants. Under the $2.3 trillion CARES Act, passenger airlines are eligible for $25 billion in cash grants for payroll; cargo carriers can get $4 billion while airport contractors like caterers and airplane cleaners are eligible for $3 billion.
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The six largest U.S. airlines -- American Airlines Group AAL.O, United Airlines UAL.O, Delta Air Lines DAL.N Southwest Airlines Co LUV.N, JetBlue Airways Corp JBLU.N and Alaska Airlines ALK.N -- are expected to get around 90% of the package, people briefed on the matter told Reuters. By David Shepardson and Tracy Rucinski WASHINGTON/CHICAGO, April 9 (Reuters) - U.S. President Donald Trump said on Thursday that airlines could receive details this weekend about the terms of a $32 billion payroll grant to offset the impact of the coronavirus outbreak, which sources told Reuters has received around 275 applicants. Airlines are eligible for cash equal to the compensation paid to employees from April 1-Sept. 30, 2019, but Treasury may not pay the full amount of grants those airlines seek because the value of requests it plans to approve exceeded $25 billion, the sources said.
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The six largest U.S. airlines -- American Airlines Group AAL.O, United Airlines UAL.O, Delta Air Lines DAL.N Southwest Airlines Co LUV.N, JetBlue Airways Corp JBLU.N and Alaska Airlines ALK.N -- are expected to get around 90% of the package, people briefed on the matter told Reuters. By David Shepardson and Tracy Rucinski WASHINGTON/CHICAGO, April 9 (Reuters) - U.S. President Donald Trump said on Thursday that airlines could receive details this weekend about the terms of a $32 billion payroll grant to offset the impact of the coronavirus outbreak, which sources told Reuters has received around 275 applicants. It's a very big package," Trump said, noting it will be "good for the airlines."
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6076.0
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2020-04-09 00:00:00 UTC
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Nasdaq 100 Movers: CTXS, UAL
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AAL
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https://www.nasdaq.com/articles/nasdaq-100-movers%3A-ctxs-ual-2020-04-09
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nan
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nan
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In early trading on Thursday, shares of United Airlines Holdings topped the list of the day's best performing components of the Nasdaq 100 index, trading up 20.3%. Year to date, United Airlines Holdings has lost about 62.4% of its value.
And the worst performing Nasdaq 100 component thus far on the day is Citrix Systems, trading down 1.9%. Citrix Systems is showing a gain of 29.9% looking at the year to date performance.
Two other components making moves today are Gilead Sciences, trading down 1.6%, and American Airlines Group, trading up 15.0% on the day.
VIDEO: Nasdaq 100 Movers: CTXS, UAL
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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And the worst performing Nasdaq 100 component thus far on the day is Citrix Systems, trading down 1.9%. Citrix Systems is showing a gain of 29.9% looking at the year to date performance. VIDEO: Nasdaq 100 Movers: CTXS, UAL The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In early trading on Thursday, shares of United Airlines Holdings topped the list of the day's best performing components of the Nasdaq 100 index, trading up 20.3%. Year to date, United Airlines Holdings has lost about 62.4% of its value. And the worst performing Nasdaq 100 component thus far on the day is Citrix Systems, trading down 1.9%.
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In early trading on Thursday, shares of United Airlines Holdings topped the list of the day's best performing components of the Nasdaq 100 index, trading up 20.3%. And the worst performing Nasdaq 100 component thus far on the day is Citrix Systems, trading down 1.9%. Two other components making moves today are Gilead Sciences, trading down 1.6%, and American Airlines Group, trading up 15.0% on the day.
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In early trading on Thursday, shares of United Airlines Holdings topped the list of the day's best performing components of the Nasdaq 100 index, trading up 20.3%. And the worst performing Nasdaq 100 component thus far on the day is Citrix Systems, trading down 1.9%. VIDEO: Nasdaq 100 Movers: CTXS, UAL The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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6077.0
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2020-04-09 00:00:00 UTC
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Sum Up The Parts: SPHB Could Be Worth $44
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AAL
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https://www.nasdaq.com/articles/sum-up-the-parts%3A-sphb-could-be-worth-%2444-2020-04-09
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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 Invesco S&P 500— High Beta ETF (Symbol: SPHB), we found that the implied analyst target price for the ETF based upon its underlying holdings is $44.31 per unit.
With SPHB trading at a recent price near $32.16 per unit, that means that analysts see 37.77% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of SPHB's underlying holdings with notable upside to their analyst target prices are Diamondback Energy, Inc. (Symbol: FANG), Devon Energy Corp. (Symbol: DVN), and American Airlines Group Inc (Symbol: AAL). Although FANG has traded at a recent price of $37.48/share, the average analyst target is 91.46% higher at $71.76/share. Similarly, DVN has 89.29% upside from the recent share price of $9.41 if the average analyst target price of $17.81/share is reached, and analysts on average are expecting AAL to reach a target price of $19.22/share, which is 69.66% above the recent price of $11.33. Below is a twelve month price history chart comparing the stock performance of FANG, DVN, 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
Invesco S&P 500— High Beta ETF SPHB $32.16 $44.31 37.77%
Diamondback Energy, Inc. FANG $37.48 $71.76 91.46%
Devon Energy Corp. DVN $9.41 $17.81 89.29%
American Airlines Group Inc AAL $11.33 $19.22 69.66%
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.
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Invesco S&P 500— High Beta ETF SPHB $32.16 $44.31 37.77% Diamondback Energy, Inc. FANG $37.48 $71.76 91.46% Devon Energy Corp. DVN $9.41 $17.81 89.29% American Airlines Group Inc AAL $11.33 $19.22 69.66% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of SPHB's underlying holdings with notable upside to their analyst target prices are Diamondback Energy, Inc. (Symbol: FANG), Devon Energy Corp. (Symbol: DVN), and American Airlines Group Inc (Symbol: AAL). Similarly, DVN has 89.29% upside from the recent share price of $9.41 if the average analyst target price of $17.81/share is reached, and analysts on average are expecting AAL to reach a target price of $19.22/share, which is 69.66% above the recent price of $11.33.
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Three of SPHB's underlying holdings with notable upside to their analyst target prices are Diamondback Energy, Inc. (Symbol: FANG), Devon Energy Corp. (Symbol: DVN), and American Airlines Group Inc (Symbol: AAL). Similarly, DVN has 89.29% upside from the recent share price of $9.41 if the average analyst target price of $17.81/share is reached, and analysts on average are expecting AAL to reach a target price of $19.22/share, which is 69.66% above the recent price of $11.33. Invesco S&P 500— High Beta ETF SPHB $32.16 $44.31 37.77% Diamondback Energy, Inc. FANG $37.48 $71.76 91.46% Devon Energy Corp. DVN $9.41 $17.81 89.29% American Airlines Group Inc AAL $11.33 $19.22 69.66% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now?
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Similarly, DVN has 89.29% upside from the recent share price of $9.41 if the average analyst target price of $17.81/share is reached, and analysts on average are expecting AAL to reach a target price of $19.22/share, which is 69.66% above the recent price of $11.33. Three of SPHB's underlying holdings with notable upside to their analyst target prices are Diamondback Energy, Inc. (Symbol: FANG), Devon Energy Corp. (Symbol: DVN), and American Airlines Group Inc (Symbol: AAL). Below is a twelve month price history chart comparing the stock performance of FANG, DVN, and AAL: Below is a summary table of the current analyst target prices discussed above:
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Invesco S&P 500— High Beta ETF SPHB $32.16 $44.31 37.77% Diamondback Energy, Inc. FANG $37.48 $71.76 91.46% Devon Energy Corp. DVN $9.41 $17.81 89.29% American Airlines Group Inc AAL $11.33 $19.22 69.66% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of SPHB's underlying holdings with notable upside to their analyst target prices are Diamondback Energy, Inc. (Symbol: FANG), Devon Energy Corp. (Symbol: DVN), and American Airlines Group Inc (Symbol: AAL). Similarly, DVN has 89.29% upside from the recent share price of $9.41 if the average analyst target price of $17.81/share is reached, and analysts on average are expecting AAL to reach a target price of $19.22/share, which is 69.66% above the recent price of $11.33.
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6078.0
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2020-04-09 00:00:00 UTC
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The AAL Paradox: Analysts Bearish But Forecast 69.66% Gains
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AAL
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https://www.nasdaq.com/articles/the-aal-paradox%3A-analysts-bearish-but-forecast-69.66-gains-2020-04-09
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Analyst ratings can sometimes be complicated, and we here at ETF Channel have noticed a bit of a paradox with American Airlines Group Inc (Symbol: AAL). The average 12-month price target for AAL — averaging the work of 9 analysts — reveals an average price target of $19.22/share. That's a whopping 69.66% above where AAL has been trading recently at $11.33/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 5 7 7
Buy ratings: 0 1 1 1
Hold ratings: 4 1 3 4
Sell ratings: 1 1 0 0
Strong sell ratings: 4 2 2 2
Average rating: 3.45 2.4 2.15 2.21
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 3.45 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 $10.00. And then on the other side of the spectrum one analyst has a target as high as $34.00. The standard deviation is $7.512.
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 $19.22/share, the 69.66% 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.
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Analyst ratings can sometimes be complicated, and we here at ETF Channel have noticed a bit of a paradox with American Airlines Group Inc (Symbol: AAL). One thing is for sure: this apparent paradox makes for a good "signal" to investors in AAL to spend fresh time assessing the company and deciding whether analysts have it right with their sentiment, or have it right with their price target for American Airlines Group Inc. The average 12-month price target for AAL — averaging the work of 9 analysts — reveals an average price target of $19.22/share.
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The average 12-month price target for AAL — averaging the work of 9 analysts — reveals an average price target of $19.22/share. The average rating of 3.45 for AAL leans towards Sell, yet the AAL price target paints a different picture. Analyst ratings can sometimes be complicated, and we here at ETF Channel have noticed a bit of a paradox with American Airlines Group Inc (Symbol: AAL).
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The average 12-month price target for AAL — averaging the work of 9 analysts — reveals an average price target of $19.22/share. And so with AAL trading so far below that average target price of $19.22/share, the 69.66% upside to that average target does seem to be a paradox against the bearish analyst ratings. Analyst ratings can sometimes be complicated, and we here at ETF Channel have noticed a bit of a paradox with American Airlines Group Inc (Symbol: AAL).
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The average rating of 3.45 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 $19.22/share, the 69.66% upside to that average target does seem to be a paradox against the bearish analyst ratings. One thing is for sure: this apparent paradox makes for a good "signal" to investors in AAL to spend fresh time assessing the company and deciding whether analysts have it right with their sentiment, or have it right with their price target for American Airlines Group Inc.
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6079.0
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2020-04-09 00:00:00 UTC
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UAL Stock Remains a Wait-and-See Situation
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AAL
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https://www.nasdaq.com/articles/ual-stock-remains-a-wait-and-see-situation-2020-04-09
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
United Airlines (NASDAQ:UAL) stock may have reached a bottom. But does that make shares a buy? Not so fast! The legacy carrier isn’t out of the woods yet. The coronavirus from China (COVID-19) continues to materially affect the airline industry. Plus, what’s to say air travel will return to normal once the COVID-19 outbreak peaks in the United States?
Source: NextNewMedia / Shutterstock.com
Things may look less bleak, but uncertainty remains for United Airlines and its peers. Granted, the recent stimulus bill does provide significant support to shore up their finances. But considering the potential terms and conditions of this federal aid, it could mean minimal upside for shareholders entering the stock today.
On the other hand, buying UAL stock at the bottom could be a smart move. Wall Street has largely discounted legacy carriers due to this black swan event. But there’s a difference between a smart contrarian bet, and a foolish “go against the crowd” play. In the case of United, I’m leaning towards the latter.
7 Penny Stocks To Buy with Massive Upside Potential
So, what’s the verdict? Let’s dive in, and see whether shares are a buy at the bottom, or if it pays to take a wait-and-see approach.
Up in the Air For UAL Stock
It’s debatable whether the COVID-19 outbreak has peaked in the United States. But if you go by recent stock market price action, you’d think we’ve already flattened the curve. Since late March, the S&P 500 (NYSEARCA:SPY) has rebounded more than 20% from its lows.
Airline stocks have also joined in on the fun. Since the passing of the $2 trillion CARES Act stimulus bill, UAL stock has rebounded more than 30% from its 52-week low, from $17.80 per share to $24.02 per share at the close April 6. Is this just a short-term boost thanks to investors calling a bottom? Or will the economic affects of the outbreak be less dire than predicted?
For airlines, that remains to be seen. You could say its all up in the air regarding their future prospects. What do analysts think? J.P. Morgan’s Jamie Baker believes 2021 revenue for the airlines will be 25% below 2019 levels. Yet, he doesn’t see that as a reason to be bearish on United Airlines shares.
The analyst maintains his “overweight” rating on the stock. Why? Baker sees United and its rival Delta Airlines (NYSE:DAL) having greater upside potential, if business travel rebounds faster than vacation travel. Baker also credits United’s progress on its prior turnaround efforts as a reason why the carrier is a more solid airline play than say, American Airlines (NASDAQ:AAL) stock.
CARES Act and United Airlines Stock
The larger issue with UAL stock isn’t whether airline revenues will quickly rebound. It’s whether the carrier has the means to ride the current situation out and avoid Chapter 11. As InvestorPlace’s David Moadel discussed March 30, the carrier is expected to make significant cuts to its flight capacity this month.
A 68% reduction in domestic capacity and a 90% capacity cut for international flights. Add in the fact the airline has yet to furlough any of its employees, and it’s tough to see how they can survive the massive cash burn.
Yet, the CARES Act may provide enough support to help United avoid the worst. The bill includes $25 billion in payroll grants to incentivize airlines to not furlough their workers. This aid could come with strings attached. Based on what’s discussed in the bill, the U.S. Treasury has the option to request equity ownership/options in the airlines that accept the grants.
However, labor unions and the Democratic Party are critical of this condition. They believe airlines will choose the bankruptcy instead of giving up equity for aid. From the shareholder’s perspective, neither one looks like a great outcome. If airlines choose Chapter 11, the common stock in United Airlines would likely fall to zero. If the airline gives the U.S. Treasury equity ownership in exchange for payroll grants, shares could be diluted, minimizing upside.
Granted, a nickel of something is better than a nickel of nothing. Diluting UAL stock (giving up upside) in exchange for aid offers better prospects than Chapter 11. But this situation alone demonstrates the uncertain upside of this and other airline stocks.
Bottom Line: Wait This One Out
In today’s market, many high-risk names offer massive potential upside. If and when COVID-19 ceases to impact the economy. But while airline, casino, retail, and restaurant stocks could be great contrarian plays, it pays to do your homework. Chances are most of the names in these industries will recover. Just not all of them.
And in this situation, that’s especially the case. Instead of trying to “predict the unpredictable,” it may pay to take a wait-and-see approach with UAL stock.
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 UAL Stock Remains a Wait-and-See Situation appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Baker also credits United’s progress on its prior turnaround efforts as a reason why the carrier is a more solid airline play than say, American Airlines (NASDAQ:AAL) stock. But considering the potential terms and conditions of this federal aid, it could mean minimal upside for shareholders entering the stock today. As InvestorPlace’s David Moadel discussed March 30, the carrier is expected to make significant cuts to its flight capacity this month.
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Baker also credits United’s progress on its prior turnaround efforts as a reason why the carrier is a more solid airline play than say, American Airlines (NASDAQ:AAL) stock. InvestorPlace - Stock Market News, Stock Advice & Trading Tips United Airlines (NASDAQ:UAL) stock may have reached a bottom. If the airline gives the U.S. Treasury equity ownership in exchange for payroll grants, shares could be diluted, minimizing upside.
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Baker also credits United’s progress on its prior turnaround efforts as a reason why the carrier is a more solid airline play than say, American Airlines (NASDAQ:AAL) stock. InvestorPlace - Stock Market News, Stock Advice & Trading Tips United Airlines (NASDAQ:UAL) stock may have reached a bottom. CARES Act and United Airlines Stock The larger issue with UAL stock isn’t whether airline revenues will quickly rebound.
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Baker also credits United’s progress on its prior turnaround efforts as a reason why the carrier is a more solid airline play than say, American Airlines (NASDAQ:AAL) stock. InvestorPlace - Stock Market News, Stock Advice & Trading Tips United Airlines (NASDAQ:UAL) stock may have reached a bottom. But considering the potential terms and conditions of this federal aid, it could mean minimal upside for shareholders entering the stock today.
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6080.0
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2020-04-08 00:00:00 UTC
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Chile's Codelco says copper production, sales hitting targets amid coronavirus outbreak
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AAL
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https://www.nasdaq.com/articles/chiles-codelco-says-copper-production-sales-hitting-targets-amid-coronavirus-outbreak-2020
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Adds additional details on measures taken by Codelco, context
SANTIAGO, April 8 (Reuters) - Chile state copper miner Codelco, the world´s largest, said on Wednesday its production continued in line with its plans despite the measures it has implemented to stave off the spread of coronavirus at its operations.
The company told Reuters in an email that it had also met 100% of its sales targets, even as many of its top customers, including China, have seen industry shuttered by the virus.
Elsewhere in Chile, some private copper miners have considered cutting production, Reuters reported last week, though for now most have opted to reduce staff and maintain operations.
Codelco earlier on Wednesday said in a statement it would temporarily suspend some contract work at its projects and mines amid increasing restrictions on movement prompted by the coronavirus crisis.
The company said the measure would apply to approximately 30% of its total third-party contracts and would last for 30 days. The suspension would be renewed as necessary as the pandemic evolves, the company added.
The state miner said increasing limitations related to the outbreak had made it "impossible" for some contractors to complete their work, but said it would nonetheless maintain operational continuity.
Codelco in March suspended construction on some projects in a bid to halt the spread of the virus. The company´s unions have for several weeks pressured for additional safety measures.
Chile, the world´s top copper producer, is home to large global miners like BHP BHP.AX, Anglo American AAL.L, Glencore GLEN.L, Freeport FCX.N and Antofagasta ANTO.L.
(Reporting by Fabian Cambero, writing by Dave Sherwood Editing by Alistair Bell)
((dave.sherwood@thomsonreuters.com; +56 9 9138 1047, +56 2 2370 4224; Reuters Messaging: dave.sherwood.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Chile, the world´s top copper producer, is home to large global miners like BHP BHP.AX, Anglo American AAL.L, Glencore GLEN.L, Freeport FCX.N and Antofagasta ANTO.L. Elsewhere in Chile, some private copper miners have considered cutting production, Reuters reported last week, though for now most have opted to reduce staff and maintain operations. Codelco earlier on Wednesday said in a statement it would temporarily suspend some contract work at its projects and mines amid increasing restrictions on movement prompted by the coronavirus crisis.
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Chile, the world´s top copper producer, is home to large global miners like BHP BHP.AX, Anglo American AAL.L, Glencore GLEN.L, Freeport FCX.N and Antofagasta ANTO.L. Adds additional details on measures taken by Codelco, context SANTIAGO, April 8 (Reuters) - Chile state copper miner Codelco, the world´s largest, said on Wednesday its production continued in line with its plans despite the measures it has implemented to stave off the spread of coronavirus at its operations. Elsewhere in Chile, some private copper miners have considered cutting production, Reuters reported last week, though for now most have opted to reduce staff and maintain operations.
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Chile, the world´s top copper producer, is home to large global miners like BHP BHP.AX, Anglo American AAL.L, Glencore GLEN.L, Freeport FCX.N and Antofagasta ANTO.L. Adds additional details on measures taken by Codelco, context SANTIAGO, April 8 (Reuters) - Chile state copper miner Codelco, the world´s largest, said on Wednesday its production continued in line with its plans despite the measures it has implemented to stave off the spread of coronavirus at its operations. Elsewhere in Chile, some private copper miners have considered cutting production, Reuters reported last week, though for now most have opted to reduce staff and maintain operations.
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Chile, the world´s top copper producer, is home to large global miners like BHP BHP.AX, Anglo American AAL.L, Glencore GLEN.L, Freeport FCX.N and Antofagasta ANTO.L. Adds additional details on measures taken by Codelco, context SANTIAGO, April 8 (Reuters) - Chile state copper miner Codelco, the world´s largest, said on Wednesday its production continued in line with its plans despite the measures it has implemented to stave off the spread of coronavirus at its operations. The company told Reuters in an email that it had also met 100% of its sales targets, even as many of its top customers, including China, have seen industry shuttered by the virus.
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6081.0
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2020-04-08 00:00:00 UTC
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Delta Airlines Stock Has Crashed and Is Now Headed Back Up
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AAL
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https://www.nasdaq.com/articles/delta-airlines-stock-has-crashed-and-is-now-headed-back-up-2020-04-08
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
A lot has changed in the last two months for airline stocks. Delta Air Lines (NYSE:DAL) has fallen almost 70% from its January highs. Up until then, it was outperforming its peers United Airlines (NASDAQ:UAL) and American Airlines (NASDAQ:AAL). Now, DAL stock is just as stuck. It clearly faces tremendous headwinds as the world tries to overcome the novel coronavirus.
Source: NextNewMedia / Shutterstock.com
Sentiment was already bad in February, but it’s sinking even lower now. Since the world is still under quarantine, the demand for air travel is a tiny sliver of what it once was. Hardly anyone is flying. Because of this, many on Wall Street are worried that airlines won’t survive the crisis.
To make matters worse, we learned this week that Berkshire Hathaway’s (NYSE:BRK.A, NYSE:BRK.B) Warren Buffett sold some of his Southwest Airlines (NYSE:LUV) and DAL stock. The markets shrugged off the news because Berkshire still holds over 50 million shares of each.
Therein lies the opportunity for investors. The fear in airline stocks may have already reached a peak, so even if the fundamentals deteriorate, investors have already priced the risks in.
Time Will Save DAL Stock
Source: Chart by TradingView
Airlines have no income right now, so value will be a tough sell as price-earnings ratios become irrelevant. But the thesis here is simple, and it revolves around the upcoming election. There is no way that incumbent President Donald Trump will let U.S. airlines fall this year.
7 Retail Stocks to Keep Your Distance From
And Democrats will not impede his efforts, because no candidate wants to be the one to kill a U.S. airline. I think the world learned its lesson after the Lehman Brothers. Too big to fail is a real concept.
Here, DAL stock is tussling with levels from its very first quarter as a public company. After the 2007 crash, it took its time building a strong base for a rally in 2013. But the recent crash brought the stock price to that exact neckline (see chart).
Since then, the stock bounced 40% off the neckline. But there is so much uncertainty that we will see the price see-saw wildly in this massive range.
What should investors do with DAL stock? They should either actively trade around short-term levels or bet on the longer-term recovery of the sector. The world stopped flying on demand and it will restart the same way. In the next 60 days people will need to fly again.
Air travel is not optional, it is a necessity to keep the globe running. This downturn is also different than the prior crash. The recovery will be an instant “on” with $2 trillion worth of incentives, and maybe more, to help with the ramp back up. the upside potential here is big enough that DAL stock is a decent speculative trade.
Why is it speculative? There is always the chance that politicians make a mistake, and that could prove costly for the airlines here.
The Potential Upside Surprise
Investors also must not forget the wrinkle that the grounding of Boeing’s (NYSE:BA) 737 Max is adding to the airline business. But at this point, I believe the 737 Max is likely to be a potential source of upside surprise.
As the pandemic eases, regulatory agencies will be under pressure to expedite the release of that plane. This is not to say that they will rush, but rather they will do all they can to accomplish the necessary steps at the fastest rate possible. Boeing needs help, and the White House vowed to provide it. The easiest way Trump’s administration can assist is by letting it deliver its inventory of planes. Related headlines will surely help DAL stock and its peers.
Nicolas Chahine is the managing director of SellSpreads.com. Join his live chat room for free here. As of this writing, he did not hold a position in any of the aforementioned securities.
The post Delta Airlines Stock Has Crashed and Is Now Headed Back Up appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Up until then, it was outperforming its peers United Airlines (NASDAQ:UAL) and American Airlines (NASDAQ:AAL). The fear in airline stocks may have already reached a peak, so even if the fundamentals deteriorate, investors have already priced the risks in. Time Will Save DAL Stock Source: Chart by TradingView Airlines have no income right now, so value will be a tough sell as price-earnings ratios become irrelevant.
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Up until then, it was outperforming its peers United Airlines (NASDAQ:UAL) and American Airlines (NASDAQ:AAL). InvestorPlace - Stock Market News, Stock Advice & Trading Tips A lot has changed in the last two months for airline stocks. Time Will Save DAL Stock Source: Chart by TradingView Airlines have no income right now, so value will be a tough sell as price-earnings ratios become irrelevant.
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Up until then, it was outperforming its peers United Airlines (NASDAQ:UAL) and American Airlines (NASDAQ:AAL). InvestorPlace - Stock Market News, Stock Advice & Trading Tips A lot has changed in the last two months for airline stocks. To make matters worse, we learned this week that Berkshire Hathaway’s (NYSE:BRK.A, NYSE:BRK.B) Warren Buffett sold some of his Southwest Airlines (NYSE:LUV) and DAL stock.
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Up until then, it was outperforming its peers United Airlines (NASDAQ:UAL) and American Airlines (NASDAQ:AAL). But the recent crash brought the stock price to that exact neckline (see chart). What should investors do with DAL stock?
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6082.0
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2020-04-08 00:00:00 UTC
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Why Shares of Airlines and Travel Businesses Are Higher Today
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AAL
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https://www.nasdaq.com/articles/why-shares-of-airlines-and-travel-businesses-are-higher-today-2020-04-08
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nan
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nan
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What happened
Shares of airlines and the businesses that support the industry have been hit hard by the COVID-19 pandemic, which has caused travel demand to all but evaporate and left airlines scrambling to cut costs.
We know the near-term damage to these businesses will be severe, but what we don't know is how long that damage will last. In recent days, markets have traded higher on a belief the worst of the pandemic might soon be behind us, sparking hope of a late spring recovery.
Shares of United Airlines Holdings (NASDAQ: UAL) gained 10% on Wednesday, while shares of American Airlines Group (NASDAQ: AAL) and Delta Air Lines (NYSE: DAL) both were up 5% around midday. And some of the businesses that rely on the airlines have performed well, too, with online travel agency Expedia Group (NASDAQ: EXPE) up more than 6% and Sabre (NASDAQ: SABR), which runs the back-end reservation systems for many airlines, up 8%.
So what
Investors, including high-profile ones, have dumped airline shares for weeks now as the companies have been forced to take drastic action to preserve their balance sheets and remain solvent through the pandemic. Delta, for example, said it expects second-quarter revenue to fall 90% year over year, adding that it is burning through about $400 million in cash reserves per week.
The industry is getting $50 billion in economic support to try to weather the storm, but no amount of assistance will be enough if travel does not return by late summer at the latest.
Image source: Getty Images.
Improving sentiment this week about how long the pandemic might last and optimism about the economy's ability to recover have provided a lift to airlines and the companies that support them. The industry came into this sudden downturn healthy by historical standards, and can likely survive even if travel only returns to typical recessionary levels. The greater the chances that the economy can quickly return to a more functional operation, the more travel stocks begin to look oversold.
For companies like Expedia and Sabre, it is going to be difficult to post solid earnings until travel returns. Sabre shares also likely got a boost after a Delaware judge ruled in the company's favor in an antitrust lawsuit brought by the U.S. Department of Justice seeking to block the company's $360 million purchase of Farelogix, which provides software to the airline industry.
Now what
Even with the recent gains, these stocks remain down between 43% and 71% year to date. That's hardly a surprise, given the way travel has declined and the uncertainty about how quickly it will return.
Travel company data by YCharts.
Investors need to be careful not to get ahead of themselves. While this week so far has been full of hope and enthusiasm, it would likely only take one batch of negative headlines about the pandemic's spread to a new region, or new lousy economic data, to send shares heading back in the other direction.
Even in the best-case scenario, near-term earnings are going to take a hit and the companies are going to be slow to recover. Given the risks, and the potentially slow and uneven recovery ahead, I'd recommend sticking with top operators like Delta.
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 March 18, 2020
Lou Whiteman owns shares of Delta Air Lines. The Motley Fool owns shares of and recommends Delta Air Lines. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shares of United Airlines Holdings (NASDAQ: UAL) gained 10% on Wednesday, while shares of American Airlines Group (NASDAQ: AAL) and Delta Air Lines (NYSE: DAL) both were up 5% around midday. So what Investors, including high-profile ones, have dumped airline shares for weeks now as the companies have been forced to take drastic action to preserve their balance sheets and remain solvent through the pandemic. Improving sentiment this week about how long the pandemic might last and optimism about the economy's ability to recover have provided a lift to airlines and the companies that support them.
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Shares of United Airlines Holdings (NASDAQ: UAL) gained 10% on Wednesday, while shares of American Airlines Group (NASDAQ: AAL) and Delta Air Lines (NYSE: DAL) both were up 5% around midday. See the 10 stocks *Stock Advisor returns as of March 18, 2020 Lou Whiteman owns shares of Delta Air Lines. The Motley Fool owns shares of and recommends Delta Air Lines.
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Shares of United Airlines Holdings (NASDAQ: UAL) gained 10% on Wednesday, while shares of American Airlines Group (NASDAQ: AAL) and Delta Air Lines (NYSE: DAL) both were up 5% around midday. What happened Shares of airlines and the businesses that support the industry have been hit hard by the COVID-19 pandemic, which has caused travel demand to all but evaporate and left airlines scrambling to cut costs. And some of the businesses that rely on the airlines have performed well, too, with online travel agency Expedia Group (NASDAQ: EXPE) up more than 6% and Sabre (NASDAQ: SABR), which runs the back-end reservation systems for many airlines, up 8%.
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Shares of United Airlines Holdings (NASDAQ: UAL) gained 10% on Wednesday, while shares of American Airlines Group (NASDAQ: AAL) and Delta Air Lines (NYSE: DAL) both were up 5% around midday. For companies like Expedia and Sabre, it is going to be difficult to post solid earnings until travel returns. Now what Even with the recent gains, these stocks remain down between 43% and 71% year to date.
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6083.0
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2020-04-07 00:00:00 UTC
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3 Top Stocks to Buy for Spring 2020
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AAL
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https://www.nasdaq.com/articles/3-top-stocks-to-buy-for-spring-2020-2020-04-07
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
No one is quite sure what to expect in the weeks ahead with the coronavirus. However, spring time still brings investors some options of possible stocks to buy.
As the weather outside gets warmer, we wanted to take a quick look at some of the top stocks that have run higher on seasonal patterns every year. For example, as the weather warms up, we typically see more travel and leisure plans, planting and higher energy.
American Airlines (NASDAQ:AAL) and JetBlue (NASDAQ:JBLU), for example, tend to push higher as folks book travel plans, as does Hilton Hotels (NYSE:HLT). As the weather turns warmer, planting stocks like Scotts (NYSE:SMG) tend to push higher. Stocks like Exxon Mobil (NYSE:XOM) even push higher as energy demands pick up momentum. Even home improvement stocks begin to push higher, like Lowe’s (NYSE:LOW).
7 Restaurant Stocks to Buy for a Big Rebound
While Spring 2020 could be challenging, we still wanted to point out some of the top seasonal stocks that tend to push higher — including:
Scotts (SMG)
Lowe’s (LOW)
Hilton Worldwide (HLT)
So, let’s dive right in.
Stocks to Buy: Scotts (SMG)
SMG)" width="300" height="169">
Source: Casimiro PT / Shutterstock.com
This is the time of year when seasonality causes demand for its products substantially increases. Even with the novel coronavirus floating around, it’s not likely to interfere with spring planting season or crop cycles. That being the case, SMG stock may be one the year’s safest bets.
Moreover, it tends to push higher as temperatures rise — in most years. Starting in March 2016, for example, the SMG stock ran from $63.70 to a high of $73.37 by August 2016. In March 2017, it ran from $84.34 to a high of $90.67. 2018 turned into a disaster. However, by 2019, the SMG stock exploded from a March 2019 low of $79.49 to $112.78. All thanks to higher demand for its lawn, garden, and pest control products.
So even with the coronavirus, I strongly believe shares of SMG could rally back to $120 near-term on the seasonal trend.
Lowe’s (LOW)
Source: Helen89 / Shutterstock.com
Lowe’s also tends to push higher with the spring season — it’s busiest time of the year. Not only does it run higher on planting goals, it pushes higher as folks repair and upgrade homes. Back in January 2020, it was looking to hire as many as 53,000 people just to keep up with demand. Starting in March 2016, LOW stock ran from a low of $63.52 to a high of $76.74. In March 2017, it exploded from $75.81 to a high of $81.55. In 2018, it ran from $83.81 to a high of $114. And in 2019, it ran from $101.30 to a high of $120.
Additionally, CEO Marvin Ellison believes the latest pullback is a bit overdone. In early March 2020, he bought 10,000 shares at just under $104 per share for $1 million. That’s a big vote of confidence, and tells me Lowe’s will be able to weather the coronavirus storm. Plus, with rates at all time lows, and stimulus hitting most bank accounts in the U.S., coupled with seasonality, we could see a sharp recovery in the stock near-term.
Bet On a Greener Future With These 3 Energy Stocks
I’d like to see LOW stock refill its bearish gap around $125 shortly.
Hilton Worldwide (HLT)
HLT)" width="300" height="169">
Source: josefkubes / Shutterstock.com
While 2020 may not be an exemplary year for travel thanks to the coronavirus, it’s still worth keeping an eye on. In a typical year, the stock tends to move higher as folks book spring and summer travel plans at hotels and resorts.
Getting caught up in that demand is Hilton. Starting in March 2016, for example, shares of HLT ran from a March low of $41.39 to a high of $48.05. In March 2017 the stock ran from $55.91 to a high of $77.78. In 2018, it pushed only slightly higher from $77.70 to $83.39 before pulling back with the broader market. By 2019, it was off to the races again, jumping from a March low of $82.69 to a high of $100.37.
Therefore, while travel plans will be put off thanks to virus concerns, once those fears have dissipated, I’d like to see HLT stock refill its gap around $112 per share.
Ian Cooper, a contributor to InvestorPlace.com, has been analyzing stocks and options for web-based advisories since 1999. As of this writing, he did not hold a position in any of the aforementioned securities.
The post 3 Top Stocks to Buy for Spring 2020 appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines (NASDAQ:AAL) and JetBlue (NASDAQ:JBLU), for example, tend to push higher as folks book travel plans, as does Hilton Hotels (NYSE:HLT). Plus, with rates at all time lows, and stimulus hitting most bank accounts in the U.S., coupled with seasonality, we could see a sharp recovery in the stock near-term. In a typical year, the stock tends to move higher as folks book spring and summer travel plans at hotels and resorts.
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American Airlines (NASDAQ:AAL) and JetBlue (NASDAQ:JBLU), for example, tend to push higher as folks book travel plans, as does Hilton Hotels (NYSE:HLT). As the weather turns warmer, planting stocks like Scotts (NYSE:SMG) tend to push higher. 7 Restaurant Stocks to Buy for a Big Rebound While Spring 2020 could be challenging, we still wanted to point out some of the top seasonal stocks that tend to push higher — including: Scotts (SMG) Lowe’s (LOW) Hilton Worldwide (HLT) So, let’s dive right in.
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American Airlines (NASDAQ:AAL) and JetBlue (NASDAQ:JBLU), for example, tend to push higher as folks book travel plans, as does Hilton Hotels (NYSE:HLT). 7 Restaurant Stocks to Buy for a Big Rebound While Spring 2020 could be challenging, we still wanted to point out some of the top seasonal stocks that tend to push higher — including: Scotts (SMG) Lowe’s (LOW) Hilton Worldwide (HLT) So, let’s dive right in. Lowe’s (LOW) Source: Helen89 / Shutterstock.com Lowe’s also tends to push higher with the spring season — it’s busiest time of the year.
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American Airlines (NASDAQ:AAL) and JetBlue (NASDAQ:JBLU), for example, tend to push higher as folks book travel plans, as does Hilton Hotels (NYSE:HLT). So even with the coronavirus, I strongly believe shares of SMG could rally back to $120 near-term on the seasonal trend. Lowe’s (LOW) Source: Helen89 / Shutterstock.com Lowe’s also tends to push higher with the spring season — it’s busiest time of the year.
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6084.0
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2020-04-07 00:00:00 UTC
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BUZZ-U.S. STOCKS ON THE MOVE-Activision Blizzard, Gilead Sciences, Royal Caribbean, Kohl's
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AAL
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https://www.nasdaq.com/articles/buzz-u.s.-stocks-on-the-move-activision-blizzard-gilead-sciences-royal-caribbean-kohls
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nan
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nan
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Eikon search string for individual stock moves: STXBZ
The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi
The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh
Wall Street rose on Tuesday as early signs of a slowdown in coronavirus cases in U.S. hot spots raised hopes that sweeping lockdown measures to contain the outbreak were working. .N
At 12:21 p.m. ET, the Dow Jones Industrial Average .DJI was up 3.36% at 23,441.6. The S&P 500 .SPX was up 2.98% at 2,743.15 and the Nasdaq Composite .IXIC was up 2.30% at 8,095.069. The top three S&P 500 .PG.INX percentage gainers: ** Kohl's Corp , up 29.1% ** Royal Caribbean , up 26% ** Capri Holdings Ltd , up 25.9% The top three S&P 500 .PL.INX percentage losers: ** Gilead Sciences , down 3% ** Activision Blizzard , down 2.6% ** Otis Worldwide Corp , down 2.2% The top three NYSE .PG.N percentage gainers: ** Sasol Ltd , up 76.4% ** Caleres Inc , up 57.7% ** Western Asset Mortgage Capital , up 48.2% The top NYSE .PL.N percentage loser: ** Cambria Cannabis Etf , down 29.4% The top three Nasdaq .PG.O percentage gainers: ** Youngevity International , up 193.1% ** Pluristem Therapeutics , up 49.1% ** G-III Apparel Group , up 36.6% The top Nasdaq .PL.O percentage losers: ** Seachange International , down 24% ** Golar LNG , down 18.6% ** Darden Restaurants DRI.N: up 14%
Darden restaurants: Rises on pay cuts for top executives, new term loan ** Syneos Health SYNH.O: up 1.9%
Syneos Health: Rises as Q1 earnings on track to meet targets ** Golar LNG GLNG.O: down 17.6%
Golar LNG: Sinks after BP claims force majeure due to pandemic ** Constellation Brands STZ.N: up 9.1%
Constellation Brands shoots higher after rating upgrade ** Wingstop WING.O: up 12.1%
Wingstop: Rises on strong Q1 sales amid coronavirus disruptions ** Akers Biosciences AKER.O: up 19.8%
Akers Biosciences: Jumps on $4.6 mln stock offer ** Broadcom Inc AVGO.O: up 4.1% ** Micron Technology MU.O: up 3.3% ** Microchip Technology MCHP.O: up 2.4% ** Applied Materials AMAT.O: up 4.9% ** Intel Corp INTC.O: up 4.3% ** Qualcomm Inc QCOM.O: up 3.5% ** Xilinx Inc XLNX.O: up 1.5%
Chip stocks gain on Samsung results ** Greenbrier GBX.N: up 17.4%
Railcar maker Greenbrier on track for best day in over 11 years after results ** Kroger Co KR.N: down 2.6% ** General Mills GIS.N: down 1.0% ** Campbell Soup CPB.N: up 0.5% ** Walmart WMT.N: down 0.1% ** Gilead Sciences GILD.O: down 4.4% ** Peloton Interactive PTON.O: down 3.8% ** Zoom Video Communications Inc ZM.O: down 5.0% ** Slack Technologies Inc WORK.N: down 2.8% ** Electronic Arts EA.O: down 0.6% ** Activision Blizzard ATVI.O: down 3.9%
Rally in 'stay-at-home' stocks runs out of steam ** Shopify SHOP.N: down 2.6%
Shopify: Slips as brokerage downgrades on slowing demand amid virus outbreak ** Cancer Genetics CGIX.O: down 15.4%
Cancer Genetics falls as co to delay filing annual report due to COVID-19 ** Hologic HOLX.O: up 5.7%
Hologic: Expects Q2 revenue above Street on diagnostic strength; shares rise ** Can-Fite Biopharma CANF.NC: up 1.9%
Can-Fite Biopharma: Rises on positive data from NASH study ** Two Harbors Investment Corp TWO.O: up 35.6% ** TPG RE Finance Trust TRTX.N: up 33.3% ** Chimera Investment Corp CIM.N: down 18.2%
Mortgage REITs jump amid broad market bounce ** Enphase Energy ENPH.O: up 9.1%
Enphase Energy: Up on solar inverter deal with France's Courant Naturel ** Nio NIO.N : up 11.5%
Tesla rival Nio rises on higher deliveries in March ** D.R. Horton DHI.N: up 4.0% ** Lennar LEN.N: up 4.9% ** Toll Brothers TOL.N: up 5.2% ** KB Home KBH.N: up 5.9% ** PulteGroup PHM.N: up 10.1%
U.S. homebuilders rise as D.R. Horton results underscore housing market resilience ** Baudax Bio Inc BXRX.O: up 2.9%
Baudax Bio Inc: Rises on launch of pain management drug in U.S. ** VF Corp VFC.N: up 6.6%
VF Corp: Up as co says to continue to pay dividend, draws down $1 bln credit ** Walgreens WBA.O: up 1.1%
Walgreens: Rises on expanding drive-thru coronavirus test sites ** Chimera Investment Corp CIM.N: down 18.2%
Chimera falls as mortgage REIT plans convertible debt offering, dividend cut ** Carnival Corp CCL.N: up 20.3% ** Royal Caribbean Cruises RCL.N: up 23.8% ** Norwegian Cruise Line Holdings NCLH.N: up 17.3% ** American Airlines AAL.O: up 17.5% ** Delta Air Lines DAL.N: up 6.4% ** United Airlines UAL.O: up 10.7% ** Hilton Worldwide HLT.N: up 7.1% ** Marriott International MAR.O: up 10.0% ** Hyatt Hotels H.N: up 5.4% ** MGM Resorts International MGM.N: up 11.7% ** Wynn Resorts WYNN.O: up 11.9% ** Las Vegas Sands LVS.N: up 7.2% ** Melco Resorts & Entertainment MLCO.O: up 0.5% ** Expedia EXPE.O: up 9.1% ** Booking Holdings Inc BKNG.O: up 5.0%
U.S. travel and casino stocks jump on signs of flattening coronavirus outbreak ** Exxon Mobil XOM.N: up 5.1%
Exxon Mobil cuts capex by 30%, shares rise ** Karyopharm Therapeutics KPTI.O: up 2.9%
Karyopharm Therapeutics: Rises on plans to test cancer drug in COVID-19 patients ** Edison Nation EDNT.O: up 9.2%
Edison Nation: Rises on launch of division to address demand surrounding COVID-19 ** Bristol Myers Squibb BMY.N: up 0.2% Bristol Myers Squibb: Rises on plans to support newly unemployed patients ** Global Payments Inc GPN.N: up 2.2% Global Payments Inc down after company withdraws FY20 outlook ** Gannett GCI.N>: up 13.7% Gannett: Adopts poison pill plan ** Masco Corp MAS.N: up 7.6% Masco Corp: RBC upgrades to 'outperform' citing resilience during downturns ** Pluristem Therapeutics PSTI.O: up 42.5% Pluristem surges on early data for COVID-19 complications treatment ** Pioneer Natural Resources PXD.N: up 4.9% Pioneer Natural Resources: JPM lifts earnings outlook on liquidity boost, hedges
** Goldman Sachs GS.N: up 5.7% ** JPMorgan JPM.N: up 4.5% ** Citigroup C.N: up 6.0% ** Wells Fargo WFC.N: up 4.6% ** Bank of America BAC.N: up 5.9% ** Morgan Stanley MS.N: up 4.5% U.S. big banks: Rise as broad market gains push yields higher USN ** Dell Technologies DELL.N: up 2.5% Dell Technologies: JPMorgan cuts PT on coronavirus impact ** Macy's M.N: up 9.8% Macy's: CFO to step down, shares rise amid broader surge ** Slack Technologies Inc WORK.N: down 2.8% Slack rises after pricing upsized $750 mln convertible debt deal ** Marathon Petroleum MPC.N: up 5.0% Marathon Petroleum: JPM expects Q1 loss on weak refining fundamentals ** Valero Energy Corp VLO.N: up 7.1% Valero: JPM estimates quarterly loss on weak capture rates ** Gilead Sciences GILD.O: down 4.4% Gilead: Fundamental story improving with remdesivir and pipeline; ups PT ** HP Inc HPQ.N: up 5.3% HP Inc: J.P. Morgan cuts PT, forecast on coronavirus impact ** Beyond Meat BYND.O: up 4.1% Beyond Meat: J.P. Morgan cuts PT on coronavirus hit to foodservice sector ** Berkshire Hathaway BRKa.N: up 2.6% ** Starbucks SBUX.O: up 4.1% Ackman's Pershing Square discloses new and raised stakes, stocks rise ** Kraft Heinz KHC.O: up 5.1% Kraft Heinz: Rises on expectations of higher Q1 sales from strong demand
The 11 major S&P 500 sectors:
Communication Services
.SPLRCL
up 2.44%
Consumer Discretionary
.SPLRCD
up 3.70%
Consumer Staples
.SPLRCS
up 2.12%
Energy
.SPNY
up 6.91%
Financial
.SPSY
up 4.79%
Health
.SPXHC
up 1.95%
Industrial
.SPLRCI
up 3.94%
Information Technology
.SPLRCT
up 2.15%
Materials
.SPLRCM
up 5.88%
Real Estate
.SPLRCR
up 3.72%
Utilities
.SPLRCU
up 2.24%
(Compiled by Sanjana Shivdas in Bengaluru)
((SanjanaSitara.Shivdas@thomsonreuters.com; within U.S. +1 646 223 8780, outside U.S. +91 80 6749 1642; Twitter: @SanjanaShivdas;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Horton results underscore housing market resilience ** Baudax Bio Inc BXRX.O: up 2.9% Baudax Bio Inc: Rises on launch of pain management drug in U.S. ** VF Corp VFC.N: up 6.6% VF Corp: Up as co says to continue to pay dividend, draws down $1 bln credit ** Walgreens WBA.O: up 1.1% Walgreens: Rises on expanding drive-thru coronavirus test sites ** Chimera Investment Corp CIM.N: down 18.2% Chimera falls as mortgage REIT plans convertible debt offering, dividend cut ** Carnival Corp CCL.N: up 20.3% ** Royal Caribbean Cruises RCL.N: up 23.8% ** Norwegian Cruise Line Holdings NCLH.N: up 17.3% ** American Airlines AAL.O: up 17.5% ** Delta Air Lines DAL.N: up 6.4% ** United Airlines UAL.O: up 10.7% ** Hilton Worldwide HLT.N: up 7.1% ** Marriott International MAR.O: up 10.0% ** Hyatt Hotels H.N: up 5.4% ** MGM Resorts International MGM.N: up 11.7% ** Wynn Resorts WYNN.O: up 11.9% ** Las Vegas Sands LVS.N: up 7.2% ** Melco Resorts & Entertainment MLCO.O: up 0.5% ** Expedia EXPE.O: up 9.1% ** Booking Holdings Inc BKNG.O: up 5.0% U.S. travel and casino stocks jump on signs of flattening coronavirus outbreak ** Exxon Mobil XOM.N: up 5.1% Exxon Mobil cuts capex by 30%, shares rise ** Karyopharm Therapeutics KPTI.O: up 2.9% Karyopharm Therapeutics: Rises on plans to test cancer drug in COVID-19 patients ** Edison Nation EDNT.O: up 9.2% Edison Nation: Rises on launch of division to address demand surrounding COVID-19 ** Bristol Myers Squibb BMY.N: up 0.2% Bristol Myers Squibb: Rises on plans to support newly unemployed patients ** Global Payments Inc GPN.N: up 2.2% Global Payments Inc down after company withdraws FY20 outlook ** Gannett GCI.N>: up 13.7% Gannett: Adopts poison pill plan ** Masco Corp MAS.N: up 7.6% Masco Corp: RBC upgrades to 'outperform' citing resilience during downturns ** Pluristem Therapeutics PSTI.O: up 42.5% Pluristem surges on early data for COVID-19 complications treatment ** Pioneer Natural Resources PXD.N: up 4.9% Pioneer Natural Resources: JPM lifts earnings outlook on liquidity boost, hedges ** Goldman Sachs GS.N: up 5.7% ** JPMorgan JPM.N: up 4.5% ** Citigroup C.N: up 6.0% ** Wells Fargo WFC.N: up 4.6% ** Bank of America BAC.N: up 5.9% ** Morgan Stanley MS.N: up 4.5% U.S. big banks: Rise as broad market gains push yields higher USN ** Dell Technologies DELL.N: up 2.5% Dell Technologies: JPMorgan cuts PT on coronavirus impact ** Macy's M.N: up 9.8% Macy's: CFO to step down, shares rise amid broader surge ** Slack Technologies Inc WORK.N: down 2.8% Slack rises after pricing upsized $750 mln convertible debt deal ** Marathon Petroleum MPC.N: up 5.0% Marathon Petroleum: JPM expects Q1 loss on weak refining fundamentals ** Valero Energy Corp VLO.N: up 7.1% Valero: JPM estimates quarterly loss on weak capture rates ** Gilead Sciences GILD.O: down 4.4% Gilead: Fundamental story improving with remdesivir and pipeline; ups PT ** HP Inc HPQ.N: up 5.3% HP Inc: J.P. Morgan cuts PT, forecast on coronavirus impact ** Beyond Meat BYND.O: up 4.1% Beyond Meat: J.P. Morgan cuts PT on coronavirus hit to foodservice sector ** Berkshire Hathaway BRKa.N: up 2.6% ** Starbucks SBUX.O: up 4.1% Ackman's Pershing Square discloses new and raised stakes, stocks rise ** Kraft Heinz KHC.O: up 5.1% Kraft Heinz: Rises on expectations of higher Q1 sales from strong demand The 11 major S&P 500 sectors: Communication Services Eikon search string for individual stock moves: STXBZ The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh Wall Street rose on Tuesday as early signs of a slowdown in coronavirus cases in U.S. hot spots raised hopes that sweeping lockdown measures to contain the outbreak were working. The top three S&P 500 .PG.INX percentage gainers: ** Kohl's Corp , up 29.1% ** Royal Caribbean , up 26% ** Capri Holdings Ltd , up 25.9% The top three S&P 500 .PL.INX percentage losers: ** Gilead Sciences , down 3% ** Activision Blizzard , down 2.6% ** Otis Worldwide Corp , down 2.2% The top three NYSE .PG.N percentage gainers: ** Sasol Ltd , up 76.4% ** Caleres Inc , up 57.7% ** Western Asset Mortgage Capital , up 48.2% The top NYSE .PL.N percentage loser: ** Cambria Cannabis Etf , down 29.4% The top three Nasdaq .PG.O percentage gainers: ** Youngevity International , up 193.1% ** Pluristem Therapeutics , up 49.1% ** G-III Apparel Group , up 36.6% The top Nasdaq .PL.O percentage losers: ** Seachange International , down 24% ** Golar LNG , down 18.6% ** Darden Restaurants DRI.N: up 14% Darden restaurants: Rises on pay cuts for top executives, new term loan ** Syneos Health SYNH.O: up 1.9% Syneos Health: Rises as Q1 earnings on track to meet targets ** Golar LNG GLNG.O: down 17.6% Golar LNG: Sinks after BP claims force majeure due to pandemic ** Constellation Brands STZ.N: up 9.1% Constellation Brands shoots higher after rating upgrade ** Wingstop WING.O: up 12.1% Wingstop: Rises on strong Q1 sales amid coronavirus disruptions ** Akers Biosciences AKER.O: up 19.8% Akers Biosciences: Jumps on $4.6 mln stock offer ** Broadcom Inc AVGO.O: up 4.1% ** Micron Technology MU.O: up 3.3% ** Microchip Technology MCHP.O: up 2.4% ** Applied Materials AMAT.O: up 4.9% ** Intel Corp INTC.O: up 4.3% ** Qualcomm Inc QCOM.O: up 3.5% ** Xilinx Inc XLNX.O: up 1.5% Chip stocks gain on Samsung results ** Greenbrier GBX.N: up 17.4% Railcar maker Greenbrier on track for best day in over 11 years after results ** Kroger Co KR.N: down 2.6% ** General Mills GIS.N: down 1.0% ** Campbell Soup CPB.N: up 0.5% ** Walmart WMT.N: down 0.1% ** Gilead Sciences GILD.O: down 4.4% ** Peloton Interactive PTON.O: down 3.8% ** Zoom Video Communications Inc ZM.O: down 5.0% ** Slack Technologies Inc WORK.N: down 2.8% ** Electronic Arts EA.O: down 0.6% ** Activision Blizzard ATVI.O: down 3.9% Rally in 'stay-at-home' stocks runs out of steam ** Shopify SHOP.N: down 2.6% Shopify: Slips as brokerage downgrades on slowing demand amid virus outbreak ** Cancer Genetics CGIX.O: down 15.4% Cancer Genetics falls as co to delay filing annual report due to COVID-19 ** Hologic HOLX.O: up 5.7% Hologic: Expects Q2 revenue above Street on diagnostic strength; shares rise ** Can-Fite Biopharma CANF.NC: up 1.9% Can-Fite Biopharma: Rises on positive data from NASH study ** Two Harbors Investment Corp TWO.O: up 35.6% ** TPG RE Finance Trust TRTX.N: up 33.3% ** Chimera Investment Corp CIM.N: down 18.2% Mortgage REITs jump amid broad market bounce ** Enphase Energy ENPH.O: up 9.1% Enphase Energy: Up on solar inverter deal with France's Courant Naturel ** Nio NIO.N : up 11.5% Tesla rival Nio rises on higher deliveries in March ** D.R.
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Horton results underscore housing market resilience ** Baudax Bio Inc BXRX.O: up 2.9% Baudax Bio Inc: Rises on launch of pain management drug in U.S. ** VF Corp VFC.N: up 6.6% VF Corp: Up as co says to continue to pay dividend, draws down $1 bln credit ** Walgreens WBA.O: up 1.1% Walgreens: Rises on expanding drive-thru coronavirus test sites ** Chimera Investment Corp CIM.N: down 18.2% Chimera falls as mortgage REIT plans convertible debt offering, dividend cut ** Carnival Corp CCL.N: up 20.3% ** Royal Caribbean Cruises RCL.N: up 23.8% ** Norwegian Cruise Line Holdings NCLH.N: up 17.3% ** American Airlines AAL.O: up 17.5% ** Delta Air Lines DAL.N: up 6.4% ** United Airlines UAL.O: up 10.7% ** Hilton Worldwide HLT.N: up 7.1% ** Marriott International MAR.O: up 10.0% ** Hyatt Hotels H.N: up 5.4% ** MGM Resorts International MGM.N: up 11.7% ** Wynn Resorts WYNN.O: up 11.9% ** Las Vegas Sands LVS.N: up 7.2% ** Melco Resorts & Entertainment MLCO.O: up 0.5% ** Expedia EXPE.O: up 9.1% ** Booking Holdings Inc BKNG.O: up 5.0% U.S. travel and casino stocks jump on signs of flattening coronavirus outbreak ** Exxon Mobil XOM.N: up 5.1% Exxon Mobil cuts capex by 30%, shares rise ** Karyopharm Therapeutics KPTI.O: up 2.9% Karyopharm Therapeutics: Rises on plans to test cancer drug in COVID-19 patients ** Edison Nation EDNT.O: up 9.2% Edison Nation: Rises on launch of division to address demand surrounding COVID-19 ** Bristol Myers Squibb BMY.N: up 0.2% Bristol Myers Squibb: Rises on plans to support newly unemployed patients ** Global Payments Inc GPN.N: up 2.2% Global Payments Inc down after company withdraws FY20 outlook ** Gannett GCI.N>: up 13.7% Gannett: Adopts poison pill plan ** Masco Corp MAS.N: up 7.6% Masco Corp: RBC upgrades to 'outperform' citing resilience during downturns ** Pluristem Therapeutics PSTI.O: up 42.5% Pluristem surges on early data for COVID-19 complications treatment ** Pioneer Natural Resources PXD.N: up 4.9% Pioneer Natural Resources: JPM lifts earnings outlook on liquidity boost, hedges ** Goldman Sachs GS.N: up 5.7% ** JPMorgan JPM.N: up 4.5% ** Citigroup C.N: up 6.0% ** Wells Fargo WFC.N: up 4.6% ** Bank of America BAC.N: up 5.9% ** Morgan Stanley MS.N: up 4.5% U.S. big banks: Rise as broad market gains push yields higher USN ** Dell Technologies DELL.N: up 2.5% Dell Technologies: JPMorgan cuts PT on coronavirus impact ** Macy's M.N: up 9.8% Macy's: CFO to step down, shares rise amid broader surge ** Slack Technologies Inc WORK.N: down 2.8% Slack rises after pricing upsized $750 mln convertible debt deal ** Marathon Petroleum MPC.N: up 5.0% Marathon Petroleum: JPM expects Q1 loss on weak refining fundamentals ** Valero Energy Corp VLO.N: up 7.1% Valero: JPM estimates quarterly loss on weak capture rates ** Gilead Sciences GILD.O: down 4.4% Gilead: Fundamental story improving with remdesivir and pipeline; ups PT ** HP Inc HPQ.N: up 5.3% HP Inc: J.P. Morgan cuts PT, forecast on coronavirus impact ** Beyond Meat BYND.O: up 4.1% Beyond Meat: J.P. Morgan cuts PT on coronavirus hit to foodservice sector ** Berkshire Hathaway BRKa.N: up 2.6% ** Starbucks SBUX.O: up 4.1% Ackman's Pershing Square discloses new and raised stakes, stocks rise ** Kraft Heinz KHC.O: up 5.1% Kraft Heinz: Rises on expectations of higher Q1 sales from strong demand The 11 major S&P 500 sectors: Communication Services Eikon search string for individual stock moves: STXBZ The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh Wall Street rose on Tuesday as early signs of a slowdown in coronavirus cases in U.S. hot spots raised hopes that sweeping lockdown measures to contain the outbreak were working. The top three S&P 500 .PG.INX percentage gainers: ** Kohl's Corp , up 29.1% ** Royal Caribbean , up 26% ** Capri Holdings Ltd , up 25.9% The top three S&P 500 .PL.INX percentage losers: ** Gilead Sciences , down 3% ** Activision Blizzard , down 2.6% ** Otis Worldwide Corp , down 2.2% The top three NYSE .PG.N percentage gainers: ** Sasol Ltd , up 76.4% ** Caleres Inc , up 57.7% ** Western Asset Mortgage Capital , up 48.2% The top NYSE .PL.N percentage loser: ** Cambria Cannabis Etf , down 29.4% The top three Nasdaq .PG.O percentage gainers: ** Youngevity International , up 193.1% ** Pluristem Therapeutics , up 49.1% ** G-III Apparel Group , up 36.6% The top Nasdaq .PL.O percentage losers: ** Seachange International , down 24% ** Golar LNG , down 18.6% ** Darden Restaurants DRI.N: up 14% Darden restaurants: Rises on pay cuts for top executives, new term loan ** Syneos Health SYNH.O: up 1.9% Syneos Health: Rises as Q1 earnings on track to meet targets ** Golar LNG GLNG.O: down 17.6% Golar LNG: Sinks after BP claims force majeure due to pandemic ** Constellation Brands STZ.N: up 9.1% Constellation Brands shoots higher after rating upgrade ** Wingstop WING.O: up 12.1% Wingstop: Rises on strong Q1 sales amid coronavirus disruptions ** Akers Biosciences AKER.O: up 19.8% Akers Biosciences: Jumps on $4.6 mln stock offer ** Broadcom Inc AVGO.O: up 4.1% ** Micron Technology MU.O: up 3.3% ** Microchip Technology MCHP.O: up 2.4% ** Applied Materials AMAT.O: up 4.9% ** Intel Corp INTC.O: up 4.3% ** Qualcomm Inc QCOM.O: up 3.5% ** Xilinx Inc XLNX.O: up 1.5% Chip stocks gain on Samsung results ** Greenbrier GBX.N: up 17.4% Railcar maker Greenbrier on track for best day in over 11 years after results ** Kroger Co KR.N: down 2.6% ** General Mills GIS.N: down 1.0% ** Campbell Soup CPB.N: up 0.5% ** Walmart WMT.N: down 0.1% ** Gilead Sciences GILD.O: down 4.4% ** Peloton Interactive PTON.O: down 3.8% ** Zoom Video Communications Inc ZM.O: down 5.0% ** Slack Technologies Inc WORK.N: down 2.8% ** Electronic Arts EA.O: down 0.6% ** Activision Blizzard ATVI.O: down 3.9% Rally in 'stay-at-home' stocks runs out of steam ** Shopify SHOP.N: down 2.6% Shopify: Slips as brokerage downgrades on slowing demand amid virus outbreak ** Cancer Genetics CGIX.O: down 15.4% Cancer Genetics falls as co to delay filing annual report due to COVID-19 ** Hologic HOLX.O: up 5.7% Hologic: Expects Q2 revenue above Street on diagnostic strength; shares rise ** Can-Fite Biopharma CANF.NC: up 1.9% Can-Fite Biopharma: Rises on positive data from NASH study ** Two Harbors Investment Corp TWO.O: up 35.6% ** TPG RE Finance Trust TRTX.N: up 33.3% ** Chimera Investment Corp CIM.N: down 18.2% Mortgage REITs jump amid broad market bounce ** Enphase Energy ENPH.O: up 9.1% Enphase Energy: Up on solar inverter deal with France's Courant Naturel ** Nio NIO.N : up 11.5% Tesla rival Nio rises on higher deliveries in March ** D.R.
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Horton results underscore housing market resilience ** Baudax Bio Inc BXRX.O: up 2.9% Baudax Bio Inc: Rises on launch of pain management drug in U.S. ** VF Corp VFC.N: up 6.6% VF Corp: Up as co says to continue to pay dividend, draws down $1 bln credit ** Walgreens WBA.O: up 1.1% Walgreens: Rises on expanding drive-thru coronavirus test sites ** Chimera Investment Corp CIM.N: down 18.2% Chimera falls as mortgage REIT plans convertible debt offering, dividend cut ** Carnival Corp CCL.N: up 20.3% ** Royal Caribbean Cruises RCL.N: up 23.8% ** Norwegian Cruise Line Holdings NCLH.N: up 17.3% ** American Airlines AAL.O: up 17.5% ** Delta Air Lines DAL.N: up 6.4% ** United Airlines UAL.O: up 10.7% ** Hilton Worldwide HLT.N: up 7.1% ** Marriott International MAR.O: up 10.0% ** Hyatt Hotels H.N: up 5.4% ** MGM Resorts International MGM.N: up 11.7% ** Wynn Resorts WYNN.O: up 11.9% ** Las Vegas Sands LVS.N: up 7.2% ** Melco Resorts & Entertainment MLCO.O: up 0.5% ** Expedia EXPE.O: up 9.1% ** Booking Holdings Inc BKNG.O: up 5.0% U.S. travel and casino stocks jump on signs of flattening coronavirus outbreak ** Exxon Mobil XOM.N: up 5.1% Exxon Mobil cuts capex by 30%, shares rise ** Karyopharm Therapeutics KPTI.O: up 2.9% Karyopharm Therapeutics: Rises on plans to test cancer drug in COVID-19 patients ** Edison Nation EDNT.O: up 9.2% Edison Nation: Rises on launch of division to address demand surrounding COVID-19 ** Bristol Myers Squibb BMY.N: up 0.2% Bristol Myers Squibb: Rises on plans to support newly unemployed patients ** Global Payments Inc GPN.N: up 2.2% Global Payments Inc down after company withdraws FY20 outlook ** Gannett GCI.N>: up 13.7% Gannett: Adopts poison pill plan ** Masco Corp MAS.N: up 7.6% Masco Corp: RBC upgrades to 'outperform' citing resilience during downturns ** Pluristem Therapeutics PSTI.O: up 42.5% Pluristem surges on early data for COVID-19 complications treatment ** Pioneer Natural Resources PXD.N: up 4.9% Pioneer Natural Resources: JPM lifts earnings outlook on liquidity boost, hedges ** Goldman Sachs GS.N: up 5.7% ** JPMorgan JPM.N: up 4.5% ** Citigroup C.N: up 6.0% ** Wells Fargo WFC.N: up 4.6% ** Bank of America BAC.N: up 5.9% ** Morgan Stanley MS.N: up 4.5% U.S. big banks: Rise as broad market gains push yields higher USN ** Dell Technologies DELL.N: up 2.5% Dell Technologies: JPMorgan cuts PT on coronavirus impact ** Macy's M.N: up 9.8% Macy's: CFO to step down, shares rise amid broader surge ** Slack Technologies Inc WORK.N: down 2.8% Slack rises after pricing upsized $750 mln convertible debt deal ** Marathon Petroleum MPC.N: up 5.0% Marathon Petroleum: JPM expects Q1 loss on weak refining fundamentals ** Valero Energy Corp VLO.N: up 7.1% Valero: JPM estimates quarterly loss on weak capture rates ** Gilead Sciences GILD.O: down 4.4% Gilead: Fundamental story improving with remdesivir and pipeline; ups PT ** HP Inc HPQ.N: up 5.3% HP Inc: J.P. Morgan cuts PT, forecast on coronavirus impact ** Beyond Meat BYND.O: up 4.1% Beyond Meat: J.P. Morgan cuts PT on coronavirus hit to foodservice sector ** Berkshire Hathaway BRKa.N: up 2.6% ** Starbucks SBUX.O: up 4.1% Ackman's Pershing Square discloses new and raised stakes, stocks rise ** Kraft Heinz KHC.O: up 5.1% Kraft Heinz: Rises on expectations of higher Q1 sales from strong demand The 11 major S&P 500 sectors: Communication Services ET, the Dow Jones Industrial Average .DJI was up 3.36% at 23,441.6. The top three S&P 500 .PG.INX percentage gainers: ** Kohl's Corp , up 29.1% ** Royal Caribbean , up 26% ** Capri Holdings Ltd , up 25.9% The top three S&P 500 .PL.INX percentage losers: ** Gilead Sciences , down 3% ** Activision Blizzard , down 2.6% ** Otis Worldwide Corp , down 2.2% The top three NYSE .PG.N percentage gainers: ** Sasol Ltd , up 76.4% ** Caleres Inc , up 57.7% ** Western Asset Mortgage Capital , up 48.2% The top NYSE .PL.N percentage loser: ** Cambria Cannabis Etf , down 29.4% The top three Nasdaq .PG.O percentage gainers: ** Youngevity International , up 193.1% ** Pluristem Therapeutics , up 49.1% ** G-III Apparel Group , up 36.6% The top Nasdaq .PL.O percentage losers: ** Seachange International , down 24% ** Golar LNG , down 18.6% ** Darden Restaurants DRI.N: up 14% Darden restaurants: Rises on pay cuts for top executives, new term loan ** Syneos Health SYNH.O: up 1.9% Syneos Health: Rises as Q1 earnings on track to meet targets ** Golar LNG GLNG.O: down 17.6% Golar LNG: Sinks after BP claims force majeure due to pandemic ** Constellation Brands STZ.N: up 9.1% Constellation Brands shoots higher after rating upgrade ** Wingstop WING.O: up 12.1% Wingstop: Rises on strong Q1 sales amid coronavirus disruptions ** Akers Biosciences AKER.O: up 19.8% Akers Biosciences: Jumps on $4.6 mln stock offer ** Broadcom Inc AVGO.O: up 4.1% ** Micron Technology MU.O: up 3.3% ** Microchip Technology MCHP.O: up 2.4% ** Applied Materials AMAT.O: up 4.9% ** Intel Corp INTC.O: up 4.3% ** Qualcomm Inc QCOM.O: up 3.5% ** Xilinx Inc XLNX.O: up 1.5% Chip stocks gain on Samsung results ** Greenbrier GBX.N: up 17.4% Railcar maker Greenbrier on track for best day in over 11 years after results ** Kroger Co KR.N: down 2.6% ** General Mills GIS.N: down 1.0% ** Campbell Soup CPB.N: up 0.5% ** Walmart WMT.N: down 0.1% ** Gilead Sciences GILD.O: down 4.4% ** Peloton Interactive PTON.O: down 3.8% ** Zoom Video Communications Inc ZM.O: down 5.0% ** Slack Technologies Inc WORK.N: down 2.8% ** Electronic Arts EA.O: down 0.6% ** Activision Blizzard ATVI.O: down 3.9% Rally in 'stay-at-home' stocks runs out of steam ** Shopify SHOP.N: down 2.6% Shopify: Slips as brokerage downgrades on slowing demand amid virus outbreak ** Cancer Genetics CGIX.O: down 15.4% Cancer Genetics falls as co to delay filing annual report due to COVID-19 ** Hologic HOLX.O: up 5.7% Hologic: Expects Q2 revenue above Street on diagnostic strength; shares rise ** Can-Fite Biopharma CANF.NC: up 1.9% Can-Fite Biopharma: Rises on positive data from NASH study ** Two Harbors Investment Corp TWO.O: up 35.6% ** TPG RE Finance Trust TRTX.N: up 33.3% ** Chimera Investment Corp CIM.N: down 18.2% Mortgage REITs jump amid broad market bounce ** Enphase Energy ENPH.O: up 9.1% Enphase Energy: Up on solar inverter deal with France's Courant Naturel ** Nio NIO.N : up 11.5% Tesla rival Nio rises on higher deliveries in March ** D.R.
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Horton results underscore housing market resilience ** Baudax Bio Inc BXRX.O: up 2.9% Baudax Bio Inc: Rises on launch of pain management drug in U.S. ** VF Corp VFC.N: up 6.6% VF Corp: Up as co says to continue to pay dividend, draws down $1 bln credit ** Walgreens WBA.O: up 1.1% Walgreens: Rises on expanding drive-thru coronavirus test sites ** Chimera Investment Corp CIM.N: down 18.2% Chimera falls as mortgage REIT plans convertible debt offering, dividend cut ** Carnival Corp CCL.N: up 20.3% ** Royal Caribbean Cruises RCL.N: up 23.8% ** Norwegian Cruise Line Holdings NCLH.N: up 17.3% ** American Airlines AAL.O: up 17.5% ** Delta Air Lines DAL.N: up 6.4% ** United Airlines UAL.O: up 10.7% ** Hilton Worldwide HLT.N: up 7.1% ** Marriott International MAR.O: up 10.0% ** Hyatt Hotels H.N: up 5.4% ** MGM Resorts International MGM.N: up 11.7% ** Wynn Resorts WYNN.O: up 11.9% ** Las Vegas Sands LVS.N: up 7.2% ** Melco Resorts & Entertainment MLCO.O: up 0.5% ** Expedia EXPE.O: up 9.1% ** Booking Holdings Inc BKNG.O: up 5.0% U.S. travel and casino stocks jump on signs of flattening coronavirus outbreak ** Exxon Mobil XOM.N: up 5.1% Exxon Mobil cuts capex by 30%, shares rise ** Karyopharm Therapeutics KPTI.O: up 2.9% Karyopharm Therapeutics: Rises on plans to test cancer drug in COVID-19 patients ** Edison Nation EDNT.O: up 9.2% Edison Nation: Rises on launch of division to address demand surrounding COVID-19 ** Bristol Myers Squibb BMY.N: up 0.2% Bristol Myers Squibb: Rises on plans to support newly unemployed patients ** Global Payments Inc GPN.N: up 2.2% Global Payments Inc down after company withdraws FY20 outlook ** Gannett GCI.N>: up 13.7% Gannett: Adopts poison pill plan ** Masco Corp MAS.N: up 7.6% Masco Corp: RBC upgrades to 'outperform' citing resilience during downturns ** Pluristem Therapeutics PSTI.O: up 42.5% Pluristem surges on early data for COVID-19 complications treatment ** Pioneer Natural Resources PXD.N: up 4.9% Pioneer Natural Resources: JPM lifts earnings outlook on liquidity boost, hedges ** Goldman Sachs GS.N: up 5.7% ** JPMorgan JPM.N: up 4.5% ** Citigroup C.N: up 6.0% ** Wells Fargo WFC.N: up 4.6% ** Bank of America BAC.N: up 5.9% ** Morgan Stanley MS.N: up 4.5% U.S. big banks: Rise as broad market gains push yields higher USN ** Dell Technologies DELL.N: up 2.5% Dell Technologies: JPMorgan cuts PT on coronavirus impact ** Macy's M.N: up 9.8% Macy's: CFO to step down, shares rise amid broader surge ** Slack Technologies Inc WORK.N: down 2.8% Slack rises after pricing upsized $750 mln convertible debt deal ** Marathon Petroleum MPC.N: up 5.0% Marathon Petroleum: JPM expects Q1 loss on weak refining fundamentals ** Valero Energy Corp VLO.N: up 7.1% Valero: JPM estimates quarterly loss on weak capture rates ** Gilead Sciences GILD.O: down 4.4% Gilead: Fundamental story improving with remdesivir and pipeline; ups PT ** HP Inc HPQ.N: up 5.3% HP Inc: J.P. Morgan cuts PT, forecast on coronavirus impact ** Beyond Meat BYND.O: up 4.1% Beyond Meat: J.P. Morgan cuts PT on coronavirus hit to foodservice sector ** Berkshire Hathaway BRKa.N: up 2.6% ** Starbucks SBUX.O: up 4.1% Ackman's Pershing Square discloses new and raised stakes, stocks rise ** Kraft Heinz KHC.O: up 5.1% Kraft Heinz: Rises on expectations of higher Q1 sales from strong demand The 11 major S&P 500 sectors: Communication Services Eikon search string for individual stock moves: STXBZ The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh Wall Street rose on Tuesday as early signs of a slowdown in coronavirus cases in U.S. hot spots raised hopes that sweeping lockdown measures to contain the outbreak were working. ET, the Dow Jones Industrial Average .DJI was up 3.36% at 23,441.6.
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6085.0
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2020-04-07 00:00:00 UTC
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U.S. finalizes minimum service rules for airlines receiving assistance
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AAL
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https://www.nasdaq.com/articles/u.s.-finalizes-minimum-service-rules-for-airlines-receiving-assistance-2020-04-07
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nan
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nan
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By David Shepardson and Tracy Rucinski
WASHINGTON/CHICAGO April 7 (Reuters) - The U.S. Transportation Department on Tuesday issued final rules setting minimum service requirements for passenger airlines receiving government financial assistance.
The U.S. Treasury Department is currently in talks with airlines about how to award $25 billion in cash grants for airlines earmarked for payroll assistance due to the coronavirus outbreak.
The Transportation Department said where multiple airports serve the same point, carriers do not need to maintain service to all of them, which would "impose undue costs," but can serve just a single airport.
The department said its service obligations "are significantly below carriers’ full pre-pandemic schedules" and strike an "appropriate balance between the needs of communities to retain at least minimal connections to the national air transportation system."
Larger carriers will need to fly at least five times a week on routes where they previously flew at least 25 weekly flights. Smaller carriers will need to fly three weekly flights on routes they previously served at least five times a week.
Airlines can also choose whether to continue to provide seasonal services. For some carriers that have eliminated required services they will need to resume operations within seven days of receiving government assistance.
U.S. airlines have canceled hundreds of thousands of flights and cut millions of seats as travel demand has nearly collapsed.
Southwest Airlines Co LUV.N said on Tuesday it was extending May schedule cuts into June, with overall flight activity dropping by about 50% until June 27. The projected decline comes even as it maintains service to all of its domestic cities and looks to launch or reestablish some international, Caribbean and Hawaiian destinations in early June.
Treasury is also considering how to award $4 billion in payroll assistance to cargo carriers and $3 billion to airport contractors. It has another $25 billion in loans it can award to passenger carriers and $4 billion in loans for cargo carriers.
American Airlines AAL.O, Southwest, Delta Air Lines DAL.N, United Airlines UAL.O, Spirit Airlines SAVE.N, JetBlue Airways JBLU.O and Alaska Airlines ALK.N are among carriers that have applied for assistance.
Airline caterer LSG Sky Chefs, a unit of German airline Lufthansa LHAG.DE, confirmed Monday it applied for payroll assistance grants.
Airline unions and some Democrats want Treasury to forgo warrants or equity for grants, while Treasury Secretary Steven Mnuchin has insisted taxpayers will get compensation.
On Sunday, RavnAir Group, the largest regional carrier in Alaska, filed for bankruptcy and grounded all of its 72 planes as it waits on a decision on government assistance.
(Reporting by David Shepardson Editing by Chizu Nomiyama and Tom Brown)
((David.Shepardson@thomsonreuters.com; 2028988324;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines AAL.O, Southwest, Delta Air Lines DAL.N, United Airlines UAL.O, Spirit Airlines SAVE.N, JetBlue Airways JBLU.O and Alaska Airlines ALK.N are among carriers that have applied for assistance. By David Shepardson and Tracy Rucinski WASHINGTON/CHICAGO April 7 (Reuters) - The U.S. Transportation Department on Tuesday issued final rules setting minimum service requirements for passenger airlines receiving government financial assistance. The department said its service obligations "are significantly below carriers’ full pre-pandemic schedules" and strike an "appropriate balance between the needs of communities to retain at least minimal connections to the national air transportation system."
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American Airlines AAL.O, Southwest, Delta Air Lines DAL.N, United Airlines UAL.O, Spirit Airlines SAVE.N, JetBlue Airways JBLU.O and Alaska Airlines ALK.N are among carriers that have applied for assistance. By David Shepardson and Tracy Rucinski WASHINGTON/CHICAGO April 7 (Reuters) - The U.S. Transportation Department on Tuesday issued final rules setting minimum service requirements for passenger airlines receiving government financial assistance. Treasury is also considering how to award $4 billion in payroll assistance to cargo carriers and $3 billion to airport contractors.
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American Airlines AAL.O, Southwest, Delta Air Lines DAL.N, United Airlines UAL.O, Spirit Airlines SAVE.N, JetBlue Airways JBLU.O and Alaska Airlines ALK.N are among carriers that have applied for assistance. By David Shepardson and Tracy Rucinski WASHINGTON/CHICAGO April 7 (Reuters) - The U.S. Transportation Department on Tuesday issued final rules setting minimum service requirements for passenger airlines receiving government financial assistance. The U.S. Treasury Department is currently in talks with airlines about how to award $25 billion in cash grants for airlines earmarked for payroll assistance due to the coronavirus outbreak.
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American Airlines AAL.O, Southwest, Delta Air Lines DAL.N, United Airlines UAL.O, Spirit Airlines SAVE.N, JetBlue Airways JBLU.O and Alaska Airlines ALK.N are among carriers that have applied for assistance. The U.S. Treasury Department is currently in talks with airlines about how to award $25 billion in cash grants for airlines earmarked for payroll assistance due to the coronavirus outbreak. Southwest Airlines Co LUV.N said on Tuesday it was extending May schedule cuts into June, with overall flight activity dropping by about 50% until June 27.
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6086.0
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2020-04-07 00:00:00 UTC
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A Better-Equipped Winning Hand for United Airline Stock Buyers
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AAL
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https://www.nasdaq.com/articles/a-better-equipped-winning-hand-for-united-airline-stock-buyers-2020-04-07
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The markets are flying confidently higher these days. But when it comes to United Airlines (NASDAQ:UAL) and investors willing to ante up on UAL stock, you ought to know exactly where the emergency exit is before potential turbulence hits. Let me explain.
Source: NextNewMedia / Shutterstock.com
The coronavirus has been tamed. Well, at least in the eyes and minds of investors and those critical price charts used for forecasting better days ahead.
But before you think Wall Street is getting ahead of itself with regards to the demise of COVID-19, it’s important to separate market action from more painful headlines to come. And that includes UAL stock.
The fact is Monday’s muscular steamrolling of bears in all the major averages added critical price confirmation to last week’s “iffy” follow-through day. As much and in today’s healthier market environment, buying stocks makes more sense. And for contrarian-oriented investors at least, those decisions might even entertain the riskiest of risk-assets out there, including United Airlines shares.
7 Retail Stocks to Keep Your Distance From
To be certain, UAL stock and other airliners remain dicier purchases. When not completely grounded, commercial carriers are nevertheless flying ‘over’ thin ice. The fact is air traffic has sunk to multi-decade lows. And there are other headline worries as well.
Aid of $32 billion to names like United, Delta Air Lines (NYSE:DAL), American Airlines (NASDAQ:AAL) and others from the U.S. government has still not been agreed upon. And even legendary value investor Warren Buffett who’s famous for buying when others are selling in panic, has reduced stakes in the sector vis-à-vis Berkshire Hathaway (NYSE:BRK.B).
Still, when there’s obvious blood on the tarmac and uncertainty so thick you could cut it with a knife, appreciably it’s a better time to buy. Also, with the Oracle of Omaha still holding massive stakes in the sector and as a world class bridge and top-notch poker player adept at not showing his real intentions during the game, the decision to buy UAL stock may have the necessary elements of a winning hand.
UAL Stock Weekly Stock Chart
Source: Charts by TradingView
On the price chart, UAL stock has obviously led the market lower. The provided illustrated weekly view shows United Airlines has tumbled down into a test of its lifetime 76% Fibonacci retracement level with most all that hurt since the second half of January. That’s well past the pain experienced by investors in the broader market or other large-cap stocks such as Microsoft (NASDAQ:MSFT) or Walmart (NYSE:WMT) and for that matter, the bulk of companies hit by the COVID-19 sell-off.
But it’s time to look optimistically forward. Technically and as United Airlines shares continue to consolidate around this deep support level, an oversold price chart is showing some stabilizing signs of life. From the two-plus weeks of ‘mostly’ inside candlestick price action to stochastics signaling a bullish crossover, there’s growing evidence for investors to consider a contrarian-style wager.
Even so and if you’re agreeable, there’s no reason to gamble on a naked long stock position. The good news is UAL stock investors don’t need too.
Bottom-line, there’s a highly-liquid options market in United Airlines where spread strategies such as collars or verticals can be designed with ironclad and reduced risk. And at the end of the day or if set your horizons out a few months or more, that amounts to having a certain emergency exit at your disposal if needed.
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 A Better-Equipped Winning Hand for United Airline Stock Buyers appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Aid of $32 billion to names like United, Delta Air Lines (NYSE:DAL), American Airlines (NASDAQ:AAL) and others from the U.S. government has still not been agreed upon. Also, with the Oracle of Omaha still holding massive stakes in the sector and as a world class bridge and top-notch poker player adept at not showing his real intentions during the game, the decision to buy UAL stock may have the necessary elements of a winning hand. The provided illustrated weekly view shows United Airlines has tumbled down into a test of its lifetime 76% Fibonacci retracement level with most all that hurt since the second half of January.
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Aid of $32 billion to names like United, Delta Air Lines (NYSE:DAL), American Airlines (NASDAQ:AAL) and others from the U.S. government has still not been agreed upon. InvestorPlace - Stock Market News, Stock Advice & Trading Tips The markets are flying confidently higher these days. UAL Stock Weekly Stock Chart
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Aid of $32 billion to names like United, Delta Air Lines (NYSE:DAL), American Airlines (NASDAQ:AAL) and others from the U.S. government has still not been agreed upon. InvestorPlace - Stock Market News, Stock Advice & Trading Tips The markets are flying confidently higher these days. But when it comes to United Airlines (NASDAQ:UAL) and investors willing to ante up on UAL stock, you ought to know exactly where the emergency exit is before potential turbulence hits.
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Aid of $32 billion to names like United, Delta Air Lines (NYSE:DAL), American Airlines (NASDAQ:AAL) and others from the U.S. government has still not been agreed upon. But when it comes to United Airlines (NASDAQ:UAL) and investors willing to ante up on UAL stock, you ought to know exactly where the emergency exit is before potential turbulence hits. UAL Stock Weekly Stock Chart
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6087.0
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2020-04-07 00:00:00 UTC
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BUZZ-U.S. STOCKS ON THE MOVE-Royal Caribbean, Kohl's, Gilead Sciences, Electronic Arts
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AAL
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https://www.nasdaq.com/articles/buzz-u.s.-stocks-on-the-move-royal-caribbean-kohls-gilead-sciences-electronic-arts-2020-04
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nan
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Eikon search string for individual stock moves: STXBZ
The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi
The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh
U.S. stocks jumped at the opening bell on Tuesday, as early signs of a slowdown in coronavirus cases in U.S. hot spots raised hopes that sweeping lockdown measures were working. .N
At 15:36 ET, the Dow Jones Industrial Average .DJI was up 2.39% at 23,222.77. The S&P 500 .SPX was up 1.93% at 2,715.04 and the Nasdaq Composite .IXIC was up 1.27% at 8,014.097. The top three S&P 500 .PG.INX percentage gainers: ** Capri Holdings Ltd CPRI.N, up 30.7% ** Kohl's Corp KSS.N, up 27.4% ** Royal Caribbean RCL.N, up 24.8% The top three S&P 500 .PL.INX percentage losers: ** Gilead Sciences GILD.O, down 4.8% ** Kroger Co KR.N, down 3.9% ** Electronic Arts EA.O, down 3.5% The top NYSE .PG.N percentage gainers: ** Sasol Ltd SSL.N, up 55.1% ** Caleres CAL.N, up 46.8% The top NYSE .PL.N percentage losers: ** Pacer US Small Cap Cash Cows 100 Etf CALF.N, down 30.3% ** Cambria Cannabis Etf TOKE.N, down 29.4% The top Nasdaq .PG.O percentage gainers: ** Akers Bioscience AKER.O, up 58.4% ** G-III Apparel Group GIII.O, up 34.3% The top three Nasdaq .PL.O percentage losers: ** SeaChange International SEAC.O, down 19.8% ** Golar LNG Ltd GLNG.O, down 15.7% ** BioNtech SE BNTX.O, down 15.9% ** Nio NIO.N : up 10.5%
Tesla rival Nio rises on higher deliveries in March ** D.R. Horton DHI.N: up 3.5% ** Lennar LEN.N: up 5.3% ** Toll Brothers TOL.N: up 6.7% ** KB Home KBH.N: up 5.6% ** PulteGroup PHM.N: up 8.9%
U.S. homebuilders rise as D.R. Horton results underscore housing market resilience ** Baudax Bio Inc BXRX.O: up 3.4%
Baudax Bio Inc: Rises on launch of pain management drug in U.S. ** VF Corp VFC.N: up 6.2%
VF Corp: Up as co says to continue to pay dividend, draws down $1 bln credit ** Walgreens WBA.O: up 2.6%
Walgreens: Rises on expanding drive-thru coronavirus test sites ** Chimera Investment Corp CIM.N: down 15.9%
Chimera falls as mortgage REIT plans convertible debt offering, dividend cut ** Carnival Corp CCL.N: up 18.8% ** Royal Caribbean Cruises RCL.N: up 27.6% ** Norwegian Cruise Line Holdings NCLH.N: up 20.2% ** American Airlines AAL.O: up 18.0% ** Delta Air Lines DAL.N: up 8.6% ** United Airlines UAL.O: up 11.5% ** Hilton Worldwide HLT.N: up 7.9% ** Marriott International MAR.O: up 11.5% ** Hyatt Hotels H.N: up 10.5% ** MGM Resorts International MGM.N: up 11.8% ** Wynn Resorts WYNN.O: up 11.7% ** Las Vegas Sands LVS.N: up 6.2% ** Melco Resorts & Entertainment MLCO.O: up 2.7% ** Expedia EXPE.O: up 8.6% ** Booking Holdings Inc BKNG.O: up 4.9%
U.S. travel and casino stocks jump on signs of flattening coronavirus outbreak ** Exxon Mobil XOM.N: up 5.3%
Exxon Mobil cuts capex by 30%, shares rise ** Karyopharm Therapeutics KPTI.O: up 0.7%
Karyopharm Therapeutics: Rises on plans to test cancer drug in COVID-19 patients ** Edison Nation EDNT.O: up 14.4%
Edison Nation: Rises on launch of division to address demand surrounding COVID-19 ** Bristol Myers Squibb BMY.N: up 0.1% Bristol Myers Squibb: Rises on plans to support newly unemployed patients ** Global Payments Inc GPN.N: down 0.4% Global Payments Inc down after company withdraws FY20 outlook ** Gannett GCI.N>: up 26.0% Gannett: Adopts poison pill plan ** Masco Corp MAS.N: up 6.1% Masco Corp: RBC upgrades to 'outperform' citing resilience during downturns ** Pluristem Therapeutics PSTI.O: up 22.6% Pluristem surges on early data for COVID-19 complications treatment ** Pioneer Natural Resources PXD.N: up 5.6% Pioneer Natural Resources: JPM lifts earnings outlook on liquidity boost, hedges
** Goldman Sachs GS.N: up 3.8% ** JPMorgan JPM.N: up 2.2% ** Citigroup C.N: up 6.3% ** Wells Fargo WFC.N: up 4.0% ** Bank of America BAC.N: up 3.9% ** Morgan Stanley MS.N: up 3.1% U.S. big banks: Rise as broad market gains push yields higher USN ** Dell Technologies DELL.N: up 2.4% Dell Technologies: JPMorgan cuts PT on coronavirus impact ** Macy's M.N: up 13.7% Macy's: CFO to step down, shares rise amid broader surge ** Slack Technologies Inc WORK.N: down 3.8% Slack rises after pricing upsized $750 mln convertible debt deal ** Marathon Petroleum MPC.N: up 4.9% Marathon Petroleum: JPM expects Q1 loss on weak refining fundamentals ** Valero Energy Corp VLO.N: up 4.9% Valero: JPM estimates quarterly loss on weak capture rates ** Gilead Sciences GILD.O: down 4.4% Gilead: Fundamental story improving with remdesivir and pipeline; ups PT ** HP Inc HPQ.N: up 4.3% HP Inc: J.P. Morgan cuts PT, forecast on coronavirus impact ** Beyond Meat BYND.O: up 2.5% Beyond Meat: J.P. Morgan cuts PT on coronavirus hit to foodservice sector ** Berkshire Hathaway BRKa.N: up 1.6% ** Starbucks SBUX.O: up 3.5% Ackman's Pershing Square discloses new and raised stakes, stocks rise ** Kraft Heinz KHC.O: up 1.5% Kraft Heinz: Rises on expectations of higher Q1 sales from strong demand
The 11 major S&P 500 sectors:
Communication Services
.SPLRCL
up 1.29%
Consumer Discretionary
.SPLRCD
up 2.84%
Consumer Staples
.SPLRCS
up 1.00%
Energy
.SPNY
up 5.65%
Financial
.SPSY
up 3.15%
Health
.SPXHC
up 1.01%
Industrial
.SPLRCI
up 3.03%
Information Technology
.SPLRCT
up 0.95%
Materials
.SPLRCM
up 4.30%
Real Estate
.SPLRCR
up 3.99%
Utilities
.SPLRCU
up 1.82%
(Compiled by Sanjana Shivdas in Bengaluru)
((SanjanaSitara.Shivdas@thomsonreuters.com; within U.S. +1 646 223 8780, outside U.S. +91 80 6749 1642; Twitter: @SanjanaShivdas;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Horton results underscore housing market resilience ** Baudax Bio Inc BXRX.O: up 3.4% Baudax Bio Inc: Rises on launch of pain management drug in U.S. ** VF Corp VFC.N: up 6.2% VF Corp: Up as co says to continue to pay dividend, draws down $1 bln credit ** Walgreens WBA.O: up 2.6% Walgreens: Rises on expanding drive-thru coronavirus test sites ** Chimera Investment Corp CIM.N: down 15.9% Chimera falls as mortgage REIT plans convertible debt offering, dividend cut ** Carnival Corp CCL.N: up 18.8% ** Royal Caribbean Cruises RCL.N: up 27.6% ** Norwegian Cruise Line Holdings NCLH.N: up 20.2% ** American Airlines AAL.O: up 18.0% ** Delta Air Lines DAL.N: up 8.6% ** United Airlines UAL.O: up 11.5% ** Hilton Worldwide HLT.N: up 7.9% ** Marriott International MAR.O: up 11.5% ** Hyatt Hotels H.N: up 10.5% ** MGM Resorts International MGM.N: up 11.8% ** Wynn Resorts WYNN.O: up 11.7% ** Las Vegas Sands LVS.N: up 6.2% ** Melco Resorts & Entertainment MLCO.O: up 2.7% ** Expedia EXPE.O: up 8.6% ** Booking Holdings Inc BKNG.O: up 4.9% U.S. travel and casino stocks jump on signs of flattening coronavirus outbreak ** Exxon Mobil XOM.N: up 5.3% Exxon Mobil cuts capex by 30%, shares rise ** Karyopharm Therapeutics KPTI.O: up 0.7% Karyopharm Therapeutics: Rises on plans to test cancer drug in COVID-19 patients ** Edison Nation EDNT.O: up 14.4% Edison Nation: Rises on launch of division to address demand surrounding COVID-19 ** Bristol Myers Squibb BMY.N: up 0.1% Bristol Myers Squibb: Rises on plans to support newly unemployed patients ** Global Payments Inc GPN.N: down 0.4% Global Payments Inc down after company withdraws FY20 outlook ** Gannett GCI.N>: up 26.0% Gannett: Adopts poison pill plan ** Masco Corp MAS.N: up 6.1% Masco Corp: RBC upgrades to 'outperform' citing resilience during downturns ** Pluristem Therapeutics PSTI.O: up 22.6% Pluristem surges on early data for COVID-19 complications treatment ** Pioneer Natural Resources PXD.N: up 5.6% Pioneer Natural Resources: JPM lifts earnings outlook on liquidity boost, hedges ** Goldman Sachs GS.N: up 3.8% ** JPMorgan JPM.N: up 2.2% ** Citigroup C.N: up 6.3% ** Wells Fargo WFC.N: up 4.0% ** Bank of America BAC.N: up 3.9% ** Morgan Stanley MS.N: up 3.1% U.S. big banks: Rise as broad market gains push yields higher USN ** Dell Technologies DELL.N: up 2.4% Dell Technologies: JPMorgan cuts PT on coronavirus impact ** Macy's M.N: up 13.7% Macy's: CFO to step down, shares rise amid broader surge ** Slack Technologies Inc WORK.N: down 3.8% Slack rises after pricing upsized $750 mln convertible debt deal ** Marathon Petroleum MPC.N: up 4.9% Marathon Petroleum: JPM expects Q1 loss on weak refining fundamentals ** Valero Energy Corp VLO.N: up 4.9% Valero: JPM estimates quarterly loss on weak capture rates ** Gilead Sciences GILD.O: down 4.4% Gilead: Fundamental story improving with remdesivir and pipeline; ups PT ** HP Inc HPQ.N: up 4.3% HP Inc: J.P. Morgan cuts PT, forecast on coronavirus impact ** Beyond Meat BYND.O: up 2.5% Beyond Meat: J.P. Morgan cuts PT on coronavirus hit to foodservice sector ** Berkshire Hathaway BRKa.N: up 1.6% ** Starbucks SBUX.O: up 3.5% Ackman's Pershing Square discloses new and raised stakes, stocks rise ** Kraft Heinz KHC.O: up 1.5% Kraft Heinz: Rises on expectations of higher Q1 sales from strong demand 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 at the opening bell on Tuesday, as early signs of a slowdown in coronavirus cases in U.S. hot spots raised hopes that sweeping lockdown measures were working. The top three S&P 500 .PG.INX percentage gainers: ** Capri Holdings Ltd CPRI.N, up 30.7% ** Kohl's Corp KSS.N, up 27.4% ** Royal Caribbean RCL.N, up 24.8% The top three S&P 500 .PL.INX percentage losers: ** Gilead Sciences GILD.O, down 4.8% ** Kroger Co KR.N, down 3.9% ** Electronic Arts EA.O, down 3.5% The top NYSE .PG.N percentage gainers: ** Sasol Ltd SSL.N, up 55.1% ** Caleres CAL.N, up 46.8% The top NYSE .PL.N percentage losers: ** Pacer US Small Cap Cash Cows 100 Etf CALF.N, down 30.3% ** Cambria Cannabis Etf TOKE.N, down 29.4% The top Nasdaq .PG.O percentage gainers: ** Akers Bioscience AKER.O, up 58.4% ** G-III Apparel Group GIII.O, up 34.3% The top three Nasdaq .PL.O percentage losers: ** SeaChange International SEAC.O, down 19.8% ** Golar LNG Ltd GLNG.O, down 15.7% ** BioNtech SE BNTX.O, down 15.9% ** Nio NIO.N : up 10.5% Tesla rival Nio rises on higher deliveries in March ** D.R.
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Horton results underscore housing market resilience ** Baudax Bio Inc BXRX.O: up 3.4% Baudax Bio Inc: Rises on launch of pain management drug in U.S. ** VF Corp VFC.N: up 6.2% VF Corp: Up as co says to continue to pay dividend, draws down $1 bln credit ** Walgreens WBA.O: up 2.6% Walgreens: Rises on expanding drive-thru coronavirus test sites ** Chimera Investment Corp CIM.N: down 15.9% Chimera falls as mortgage REIT plans convertible debt offering, dividend cut ** Carnival Corp CCL.N: up 18.8% ** Royal Caribbean Cruises RCL.N: up 27.6% ** Norwegian Cruise Line Holdings NCLH.N: up 20.2% ** American Airlines AAL.O: up 18.0% ** Delta Air Lines DAL.N: up 8.6% ** United Airlines UAL.O: up 11.5% ** Hilton Worldwide HLT.N: up 7.9% ** Marriott International MAR.O: up 11.5% ** Hyatt Hotels H.N: up 10.5% ** MGM Resorts International MGM.N: up 11.8% ** Wynn Resorts WYNN.O: up 11.7% ** Las Vegas Sands LVS.N: up 6.2% ** Melco Resorts & Entertainment MLCO.O: up 2.7% ** Expedia EXPE.O: up 8.6% ** Booking Holdings Inc BKNG.O: up 4.9% U.S. travel and casino stocks jump on signs of flattening coronavirus outbreak ** Exxon Mobil XOM.N: up 5.3% Exxon Mobil cuts capex by 30%, shares rise ** Karyopharm Therapeutics KPTI.O: up 0.7% Karyopharm Therapeutics: Rises on plans to test cancer drug in COVID-19 patients ** Edison Nation EDNT.O: up 14.4% Edison Nation: Rises on launch of division to address demand surrounding COVID-19 ** Bristol Myers Squibb BMY.N: up 0.1% Bristol Myers Squibb: Rises on plans to support newly unemployed patients ** Global Payments Inc GPN.N: down 0.4% Global Payments Inc down after company withdraws FY20 outlook ** Gannett GCI.N>: up 26.0% Gannett: Adopts poison pill plan ** Masco Corp MAS.N: up 6.1% Masco Corp: RBC upgrades to 'outperform' citing resilience during downturns ** Pluristem Therapeutics PSTI.O: up 22.6% Pluristem surges on early data for COVID-19 complications treatment ** Pioneer Natural Resources PXD.N: up 5.6% Pioneer Natural Resources: JPM lifts earnings outlook on liquidity boost, hedges ** Goldman Sachs GS.N: up 3.8% ** JPMorgan JPM.N: up 2.2% ** Citigroup C.N: up 6.3% ** Wells Fargo WFC.N: up 4.0% ** Bank of America BAC.N: up 3.9% ** Morgan Stanley MS.N: up 3.1% U.S. big banks: Rise as broad market gains push yields higher USN ** Dell Technologies DELL.N: up 2.4% Dell Technologies: JPMorgan cuts PT on coronavirus impact ** Macy's M.N: up 13.7% Macy's: CFO to step down, shares rise amid broader surge ** Slack Technologies Inc WORK.N: down 3.8% Slack rises after pricing upsized $750 mln convertible debt deal ** Marathon Petroleum MPC.N: up 4.9% Marathon Petroleum: JPM expects Q1 loss on weak refining fundamentals ** Valero Energy Corp VLO.N: up 4.9% Valero: JPM estimates quarterly loss on weak capture rates ** Gilead Sciences GILD.O: down 4.4% Gilead: Fundamental story improving with remdesivir and pipeline; ups PT ** HP Inc HPQ.N: up 4.3% HP Inc: J.P. Morgan cuts PT, forecast on coronavirus impact ** Beyond Meat BYND.O: up 2.5% Beyond Meat: J.P. Morgan cuts PT on coronavirus hit to foodservice sector ** Berkshire Hathaway BRKa.N: up 1.6% ** Starbucks SBUX.O: up 3.5% Ackman's Pershing Square discloses new and raised stakes, stocks rise ** Kraft Heinz KHC.O: up 1.5% Kraft Heinz: Rises on expectations of higher Q1 sales from strong demand 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 at the opening bell on Tuesday, as early signs of a slowdown in coronavirus cases in U.S. hot spots raised hopes that sweeping lockdown measures were working. The top three S&P 500 .PG.INX percentage gainers: ** Capri Holdings Ltd CPRI.N, up 30.7% ** Kohl's Corp KSS.N, up 27.4% ** Royal Caribbean RCL.N, up 24.8% The top three S&P 500 .PL.INX percentage losers: ** Gilead Sciences GILD.O, down 4.8% ** Kroger Co KR.N, down 3.9% ** Electronic Arts EA.O, down 3.5% The top NYSE .PG.N percentage gainers: ** Sasol Ltd SSL.N, up 55.1% ** Caleres CAL.N, up 46.8% The top NYSE .PL.N percentage losers: ** Pacer US Small Cap Cash Cows 100 Etf CALF.N, down 30.3% ** Cambria Cannabis Etf TOKE.N, down 29.4% The top Nasdaq .PG.O percentage gainers: ** Akers Bioscience AKER.O, up 58.4% ** G-III Apparel Group GIII.O, up 34.3% The top three Nasdaq .PL.O percentage losers: ** SeaChange International SEAC.O, down 19.8% ** Golar LNG Ltd GLNG.O, down 15.7% ** BioNtech SE BNTX.O, down 15.9% ** Nio NIO.N : up 10.5% Tesla rival Nio rises on higher deliveries in March ** D.R.
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Horton results underscore housing market resilience ** Baudax Bio Inc BXRX.O: up 3.4% Baudax Bio Inc: Rises on launch of pain management drug in U.S. ** VF Corp VFC.N: up 6.2% VF Corp: Up as co says to continue to pay dividend, draws down $1 bln credit ** Walgreens WBA.O: up 2.6% Walgreens: Rises on expanding drive-thru coronavirus test sites ** Chimera Investment Corp CIM.N: down 15.9% Chimera falls as mortgage REIT plans convertible debt offering, dividend cut ** Carnival Corp CCL.N: up 18.8% ** Royal Caribbean Cruises RCL.N: up 27.6% ** Norwegian Cruise Line Holdings NCLH.N: up 20.2% ** American Airlines AAL.O: up 18.0% ** Delta Air Lines DAL.N: up 8.6% ** United Airlines UAL.O: up 11.5% ** Hilton Worldwide HLT.N: up 7.9% ** Marriott International MAR.O: up 11.5% ** Hyatt Hotels H.N: up 10.5% ** MGM Resorts International MGM.N: up 11.8% ** Wynn Resorts WYNN.O: up 11.7% ** Las Vegas Sands LVS.N: up 6.2% ** Melco Resorts & Entertainment MLCO.O: up 2.7% ** Expedia EXPE.O: up 8.6% ** Booking Holdings Inc BKNG.O: up 4.9% U.S. travel and casino stocks jump on signs of flattening coronavirus outbreak ** Exxon Mobil XOM.N: up 5.3% Exxon Mobil cuts capex by 30%, shares rise ** Karyopharm Therapeutics KPTI.O: up 0.7% Karyopharm Therapeutics: Rises on plans to test cancer drug in COVID-19 patients ** Edison Nation EDNT.O: up 14.4% Edison Nation: Rises on launch of division to address demand surrounding COVID-19 ** Bristol Myers Squibb BMY.N: up 0.1% Bristol Myers Squibb: Rises on plans to support newly unemployed patients ** Global Payments Inc GPN.N: down 0.4% Global Payments Inc down after company withdraws FY20 outlook ** Gannett GCI.N>: up 26.0% Gannett: Adopts poison pill plan ** Masco Corp MAS.N: up 6.1% Masco Corp: RBC upgrades to 'outperform' citing resilience during downturns ** Pluristem Therapeutics PSTI.O: up 22.6% Pluristem surges on early data for COVID-19 complications treatment ** Pioneer Natural Resources PXD.N: up 5.6% Pioneer Natural Resources: JPM lifts earnings outlook on liquidity boost, hedges ** Goldman Sachs GS.N: up 3.8% ** JPMorgan JPM.N: up 2.2% ** Citigroup C.N: up 6.3% ** Wells Fargo WFC.N: up 4.0% ** Bank of America BAC.N: up 3.9% ** Morgan Stanley MS.N: up 3.1% U.S. big banks: Rise as broad market gains push yields higher USN ** Dell Technologies DELL.N: up 2.4% Dell Technologies: JPMorgan cuts PT on coronavirus impact ** Macy's M.N: up 13.7% Macy's: CFO to step down, shares rise amid broader surge ** Slack Technologies Inc WORK.N: down 3.8% Slack rises after pricing upsized $750 mln convertible debt deal ** Marathon Petroleum MPC.N: up 4.9% Marathon Petroleum: JPM expects Q1 loss on weak refining fundamentals ** Valero Energy Corp VLO.N: up 4.9% Valero: JPM estimates quarterly loss on weak capture rates ** Gilead Sciences GILD.O: down 4.4% Gilead: Fundamental story improving with remdesivir and pipeline; ups PT ** HP Inc HPQ.N: up 4.3% HP Inc: J.P. Morgan cuts PT, forecast on coronavirus impact ** Beyond Meat BYND.O: up 2.5% Beyond Meat: J.P. Morgan cuts PT on coronavirus hit to foodservice sector ** Berkshire Hathaway BRKa.N: up 1.6% ** Starbucks SBUX.O: up 3.5% Ackman's Pershing Square discloses new and raised stakes, stocks rise ** Kraft Heinz KHC.O: up 1.5% Kraft Heinz: Rises on expectations of higher Q1 sales from strong demand The 11 major S&P 500 sectors: Communication Services .N At 15:36 ET, the Dow Jones Industrial Average .DJI was up 2.39% at 23,222.77. The top three S&P 500 .PG.INX percentage gainers: ** Capri Holdings Ltd CPRI.N, up 30.7% ** Kohl's Corp KSS.N, up 27.4% ** Royal Caribbean RCL.N, up 24.8% The top three S&P 500 .PL.INX percentage losers: ** Gilead Sciences GILD.O, down 4.8% ** Kroger Co KR.N, down 3.9% ** Electronic Arts EA.O, down 3.5% The top NYSE .PG.N percentage gainers: ** Sasol Ltd SSL.N, up 55.1% ** Caleres CAL.N, up 46.8% The top NYSE .PL.N percentage losers: ** Pacer US Small Cap Cash Cows 100 Etf CALF.N, down 30.3% ** Cambria Cannabis Etf TOKE.N, down 29.4% The top Nasdaq .PG.O percentage gainers: ** Akers Bioscience AKER.O, up 58.4% ** G-III Apparel Group GIII.O, up 34.3% The top three Nasdaq .PL.O percentage losers: ** SeaChange International SEAC.O, down 19.8% ** Golar LNG Ltd GLNG.O, down 15.7% ** BioNtech SE BNTX.O, down 15.9% ** Nio NIO.N : up 10.5% Tesla rival Nio rises on higher deliveries in March ** D.R.
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Horton results underscore housing market resilience ** Baudax Bio Inc BXRX.O: up 3.4% Baudax Bio Inc: Rises on launch of pain management drug in U.S. ** VF Corp VFC.N: up 6.2% VF Corp: Up as co says to continue to pay dividend, draws down $1 bln credit ** Walgreens WBA.O: up 2.6% Walgreens: Rises on expanding drive-thru coronavirus test sites ** Chimera Investment Corp CIM.N: down 15.9% Chimera falls as mortgage REIT plans convertible debt offering, dividend cut ** Carnival Corp CCL.N: up 18.8% ** Royal Caribbean Cruises RCL.N: up 27.6% ** Norwegian Cruise Line Holdings NCLH.N: up 20.2% ** American Airlines AAL.O: up 18.0% ** Delta Air Lines DAL.N: up 8.6% ** United Airlines UAL.O: up 11.5% ** Hilton Worldwide HLT.N: up 7.9% ** Marriott International MAR.O: up 11.5% ** Hyatt Hotels H.N: up 10.5% ** MGM Resorts International MGM.N: up 11.8% ** Wynn Resorts WYNN.O: up 11.7% ** Las Vegas Sands LVS.N: up 6.2% ** Melco Resorts & Entertainment MLCO.O: up 2.7% ** Expedia EXPE.O: up 8.6% ** Booking Holdings Inc BKNG.O: up 4.9% U.S. travel and casino stocks jump on signs of flattening coronavirus outbreak ** Exxon Mobil XOM.N: up 5.3% Exxon Mobil cuts capex by 30%, shares rise ** Karyopharm Therapeutics KPTI.O: up 0.7% Karyopharm Therapeutics: Rises on plans to test cancer drug in COVID-19 patients ** Edison Nation EDNT.O: up 14.4% Edison Nation: Rises on launch of division to address demand surrounding COVID-19 ** Bristol Myers Squibb BMY.N: up 0.1% Bristol Myers Squibb: Rises on plans to support newly unemployed patients ** Global Payments Inc GPN.N: down 0.4% Global Payments Inc down after company withdraws FY20 outlook ** Gannett GCI.N>: up 26.0% Gannett: Adopts poison pill plan ** Masco Corp MAS.N: up 6.1% Masco Corp: RBC upgrades to 'outperform' citing resilience during downturns ** Pluristem Therapeutics PSTI.O: up 22.6% Pluristem surges on early data for COVID-19 complications treatment ** Pioneer Natural Resources PXD.N: up 5.6% Pioneer Natural Resources: JPM lifts earnings outlook on liquidity boost, hedges ** Goldman Sachs GS.N: up 3.8% ** JPMorgan JPM.N: up 2.2% ** Citigroup C.N: up 6.3% ** Wells Fargo WFC.N: up 4.0% ** Bank of America BAC.N: up 3.9% ** Morgan Stanley MS.N: up 3.1% U.S. big banks: Rise as broad market gains push yields higher USN ** Dell Technologies DELL.N: up 2.4% Dell Technologies: JPMorgan cuts PT on coronavirus impact ** Macy's M.N: up 13.7% Macy's: CFO to step down, shares rise amid broader surge ** Slack Technologies Inc WORK.N: down 3.8% Slack rises after pricing upsized $750 mln convertible debt deal ** Marathon Petroleum MPC.N: up 4.9% Marathon Petroleum: JPM expects Q1 loss on weak refining fundamentals ** Valero Energy Corp VLO.N: up 4.9% Valero: JPM estimates quarterly loss on weak capture rates ** Gilead Sciences GILD.O: down 4.4% Gilead: Fundamental story improving with remdesivir and pipeline; ups PT ** HP Inc HPQ.N: up 4.3% HP Inc: J.P. Morgan cuts PT, forecast on coronavirus impact ** Beyond Meat BYND.O: up 2.5% Beyond Meat: J.P. Morgan cuts PT on coronavirus hit to foodservice sector ** Berkshire Hathaway BRKa.N: up 1.6% ** Starbucks SBUX.O: up 3.5% Ackman's Pershing Square discloses new and raised stakes, stocks rise ** Kraft Heinz KHC.O: up 1.5% Kraft Heinz: Rises on expectations of higher Q1 sales from strong demand 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 at the opening bell on Tuesday, as early signs of a slowdown in coronavirus cases in U.S. hot spots raised hopes that sweeping lockdown measures were working. .N At 15:36 ET, the Dow Jones Industrial Average .DJI was up 2.39% at 23,222.77.
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6088.0
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2020-04-07 00:00:00 UTC
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Nasdaq 100 Movers: EA, AAL
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AAL
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https://www.nasdaq.com/articles/nasdaq-100-movers%3A-ea-aal-2020-04-07
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nan
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nan
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In early trading on Tuesday, shares of American Airlines Group topped the list of the day's best performing components of the Nasdaq 100 index, trading up 24.5%. Year to date, American Airlines Group has lost about 58.8% of its value.
And the worst performing Nasdaq 100 component thus far on the day is Electronic Arts, trading down 5.6%. Electronic Arts is lower by about 6.5% looking at the year to date performance.
Two other components making moves today are Activision Blizzard, trading down 5.2%, and United Airlines Holdings, trading up 18.5% on the day.
VIDEO: Nasdaq 100 Movers: EA, AAL
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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VIDEO: Nasdaq 100 Movers: EA, AAL The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In early trading on Tuesday, shares of American Airlines Group topped the list of the day's best performing components of the Nasdaq 100 index, trading up 24.5%. And the worst performing Nasdaq 100 component thus far on the day is Electronic Arts, trading down 5.6%.
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VIDEO: Nasdaq 100 Movers: EA, AAL The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In early trading on Tuesday, shares of American Airlines Group topped the list of the day's best performing components of the Nasdaq 100 index, trading up 24.5%. Year to date, American Airlines Group has lost about 58.8% of its value.
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VIDEO: Nasdaq 100 Movers: EA, AAL The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In early trading on Tuesday, shares of American Airlines Group topped the list of the day's best performing components of the Nasdaq 100 index, trading up 24.5%. And the worst performing Nasdaq 100 component thus far on the day is Electronic Arts, trading down 5.6%.
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VIDEO: Nasdaq 100 Movers: EA, AAL The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In early trading on Tuesday, shares of American Airlines Group topped the list of the day's best performing components of the Nasdaq 100 index, trading up 24.5%. And the worst performing Nasdaq 100 component thus far on the day is Electronic Arts, trading down 5.6%.
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6089.0
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2020-04-07 00:00:00 UTC
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Why Airline Shares Are Soaring Today
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AAL
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https://www.nasdaq.com/articles/why-airline-shares-are-soaring-today-2020-04-07
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nan
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nan
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What happened
We've been saying for a while now that airline shares are likely to rise and fall based on sentiment about how quickly the COVID-19 coronavirus pandemic will be contained and how severe its impact on the economy will be. Wall Street has adopted an optimistic tone in recent days, and that mood is having an oversize impact on airline stocks.
Shares of American Airlines Group (NASDAQ: AAL), Spirit Airlines (NYSE: SAVE), Hawaiian Holdings (NASDAQ: HA), and JetBlue Airways (NASDAQ: JBLU) all gained more than 20% on Tuesday morning, while shares of United Airlines Holdings (NASDAQ: UAL), Southwest Airlines (NYSE: LUV), Alaska Air Group (NYSE: ALK), and Delta Air Lines (NYSE: DAL) were all up double digits as of 10 a.m.
It's a great day to be invested in airlines. But can it last?
So what
The airline sector has been devastated by the pandemic, with demand for travel disappearing overnight. Carriers have reacted by cutting upward of 80% to 90% of their schedules, grounding planes, and freezing hiring, but with revenue expected to be down 90% year over year, no amount of cuts ensure the companies will remain solvent.
The industry got a lifeline from Washington in late March in the form of $50 billion in loans and grants. That money buys the airlines time and shifts the focus toward questions of how long the pandemic will last and how it will affect the economy.
Image source: Getty Images.
We still don't know the answer to that question, but markets have jumped in recent days on signs that the pandemic might have peaked in hard-hit areas, including New York. If so, it is at least possible the economy, and with it travel, will begin to normalize heading into the summer and airlines will soon see an uptick in revenue coming through the door.
The top gainers on Tuesday are some of the airline stocks hardest hit by the pandemic. American was particularly vulnerable among the major airlines due to its industry-high debt load, while Hawaiian has a unique, high-cost route network and was forced to ground much of its fleet after the state of Hawaii issued a quarantine.
Spirit, meanwhile, is a smaller airline with a relatively high debt load, and JetBlue has been trying to cater to premium fliers who might be tougher to reach in a recession.
Now what
As an airline shareholder I'm enjoying these gains as much as anyone, but be warned: The turbulence is likely far from over. We're only one headline about a virus flareup from reminding markets how serious the situation is, and even in the best-case scenario it seems unlikely we'll be able to flip a switch and restart the U.S. economy.
I'm skeptical of both the best-case and worst-case scenarios at this moment. I doubt we will see a quick recovery and travel demand will return to pre-pandemic levels at all this year, and demand could lag into 2021. That said, I am hopeful that we will begin to see more normal demand, albeit at recessionary levels, in the months to come.
For investors that means it is safe to put your money in airlines, but you should expect more down days along with these spikes higher. I'd stick to top operators, including Southwest and Delta, and buckle in and prepare for a long flight.
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 March 18, 2020
Lou Whiteman owns shares of Delta Air Lines and Spirit Airlines. The Motley Fool owns shares of and recommends Delta Air Lines, Southwest Airlines, and Spirit Airlines. The Motley Fool recommends Alaska Air Group, Hawaiian Holdings, and JetBlue Airways. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shares of American Airlines Group (NASDAQ: AAL), Spirit Airlines (NYSE: SAVE), Hawaiian Holdings (NASDAQ: HA), and JetBlue Airways (NASDAQ: JBLU) all gained more than 20% on Tuesday morning, while shares of United Airlines Holdings (NASDAQ: UAL), Southwest Airlines (NYSE: LUV), Alaska Air Group (NYSE: ALK), and Delta Air Lines (NYSE: DAL) were all up double digits as of 10 a.m. What happened We've been saying for a while now that airline shares are likely to rise and fall based on sentiment about how quickly the COVID-19 coronavirus pandemic will be contained and how severe its impact on the economy will be. We still don't know the answer to that question, but markets have jumped in recent days on signs that the pandemic might have peaked in hard-hit areas, including New York.
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Shares of American Airlines Group (NASDAQ: AAL), Spirit Airlines (NYSE: SAVE), Hawaiian Holdings (NASDAQ: HA), and JetBlue Airways (NASDAQ: JBLU) all gained more than 20% on Tuesday morning, while shares of United Airlines Holdings (NASDAQ: UAL), Southwest Airlines (NYSE: LUV), Alaska Air Group (NYSE: ALK), and Delta Air Lines (NYSE: DAL) were all up double digits as of 10 a.m. The Motley Fool owns shares of and recommends Delta Air Lines, Southwest Airlines, and Spirit Airlines. The Motley Fool recommends Alaska Air Group, Hawaiian Holdings, and JetBlue Airways.
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Shares of American Airlines Group (NASDAQ: AAL), Spirit Airlines (NYSE: SAVE), Hawaiian Holdings (NASDAQ: HA), and JetBlue Airways (NASDAQ: JBLU) all gained more than 20% on Tuesday morning, while shares of United Airlines Holdings (NASDAQ: UAL), Southwest Airlines (NYSE: LUV), Alaska Air Group (NYSE: ALK), and Delta Air Lines (NYSE: DAL) were all up double digits as of 10 a.m. See the 10 stocks *Stock Advisor returns as of March 18, 2020 Lou Whiteman owns shares of Delta Air Lines and Spirit Airlines. The Motley Fool owns shares of and recommends Delta Air Lines, Southwest Airlines, and Spirit Airlines.
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Shares of American Airlines Group (NASDAQ: AAL), Spirit Airlines (NYSE: SAVE), Hawaiian Holdings (NASDAQ: HA), and JetBlue Airways (NASDAQ: JBLU) all gained more than 20% on Tuesday morning, while shares of United Airlines Holdings (NASDAQ: UAL), Southwest Airlines (NYSE: LUV), Alaska Air Group (NYSE: ALK), and Delta Air Lines (NYSE: DAL) were all up double digits as of 10 a.m. I doubt we will see a quick recovery and travel demand will return to pre-pandemic levels at all this year, and demand could lag into 2021. That's right -- they think these 10 stocks are even better buys.
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6090.0
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2020-04-06 00:00:00 UTC
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Alaska's RavnAir bankruptcy while awaiting govt aid shows regional airlines' challenges
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AAL
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https://www.nasdaq.com/articles/alaskas-ravnair-bankruptcy-while-awaiting-govt-aid-shows-regional-airlines-challenges-2020
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nan
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nan
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By David Shepardson and Tracy Rucinski
WASHINGTON/CHICAGO, April 6 (Reuters) - RavnAir Group, the largest regional carrier in Alaska, filed for bankruptcy on Sunday and grounded all of its 72 planes, saying it was clear that government aid would not arrive before it ran out of cash in the midst of an "astonishing" decline in bookings and revenue due to the coronavirus.
Its Chapter 11 filing underscores the challenges facing other U.S. regional carriers that, like larger airlines, are seeking federal aid to help them through the worst downturn the industry has ever faced.
RavnAir - which has a partnership with Alaska Airlines ALK.N and interline agreements with American Airlines AAL.O, United Airlines UAL.O and Delta DAL.N - said it applied on Friday for federal payroll support but did not know if or when it would be granted.
The Trump administration is weighing applications from numerous airlines as it considers how to distribute as soon as this week up to $32 billion for passenger and cargo carriers and airport contractors under the CARES Act meant to help the sector cover payroll costs.
Regional airlines, which tend to serve remote communities, are particularly vulnerable to the downturn because they are not publicly traded and cannot access capital markets. They have asked the U.S. Treasury Department to prioritize assistance for them when awarding the grants.
Many of RavnAir's customers fly on Medicaid-subsidized tickets, it said, while other key customers include companies in industries like oil & gas, mining, and tourism where business is suffering. In addition, by mid-March it was receiving demands from rural hubs and villages around Alaska not to fly passengers to or from their communities, it said in a court filing.
The tale of RavnAir reflects airlines' woes across the country that began seeing a dramatic drop in bookings around March 12 when it became clear that coronavirus outbreaks were increasing across the world.
RavnAir said it had laid off almost all of its workforce and suspended operations before filing for Chapter 11 in Delaware on Sunday, but hopes to be able to restart on the other side of bankruptcy, particularly if it receives government relief.
In a letter posted Sunday, RavnAir Chief Executive Dave Pflieger said the airline was working to "resume the vital air service you depend on to get home to your families, to your businesses, to medical appointments, and to other duties that are essential to our communities and the state of Alaska."
On Sunday, top Democrats urged Treasury Secretary Steven Mnuchin to move quickly to release the grants without imposing unreasonable conditions.
Democrats press U.S. Treasury to move quickly on $32 billion aviation grants
(Reporting by David Shepardson and Tracy Rucinski; Editing by Lisa Shumaker and Marguerita Choy)
((David.Shepardson@thomsonreuters.com; 2028988324;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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RavnAir - which has a partnership with Alaska Airlines ALK.N and interline agreements with American Airlines AAL.O, United Airlines UAL.O and Delta DAL.N - said it applied on Friday for federal payroll support but did not know if or when it would be granted. By David Shepardson and Tracy Rucinski WASHINGTON/CHICAGO, April 6 (Reuters) - RavnAir Group, the largest regional carrier in Alaska, filed for bankruptcy on Sunday and grounded all of its 72 planes, saying it was clear that government aid would not arrive before it ran out of cash in the midst of an "astonishing" decline in bookings and revenue due to the coronavirus. The Trump administration is weighing applications from numerous airlines as it considers how to distribute as soon as this week up to $32 billion for passenger and cargo carriers and airport contractors under the CARES Act meant to help the sector cover payroll costs.
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RavnAir - which has a partnership with Alaska Airlines ALK.N and interline agreements with American Airlines AAL.O, United Airlines UAL.O and Delta DAL.N - said it applied on Friday for federal payroll support but did not know if or when it would be granted. By David Shepardson and Tracy Rucinski WASHINGTON/CHICAGO, April 6 (Reuters) - RavnAir Group, the largest regional carrier in Alaska, filed for bankruptcy on Sunday and grounded all of its 72 planes, saying it was clear that government aid would not arrive before it ran out of cash in the midst of an "astonishing" decline in bookings and revenue due to the coronavirus. Its Chapter 11 filing underscores the challenges facing other U.S. regional carriers that, like larger airlines, are seeking federal aid to help them through the worst downturn the industry has ever faced.
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RavnAir - which has a partnership with Alaska Airlines ALK.N and interline agreements with American Airlines AAL.O, United Airlines UAL.O and Delta DAL.N - said it applied on Friday for federal payroll support but did not know if or when it would be granted. By David Shepardson and Tracy Rucinski WASHINGTON/CHICAGO, April 6 (Reuters) - RavnAir Group, the largest regional carrier in Alaska, filed for bankruptcy on Sunday and grounded all of its 72 planes, saying it was clear that government aid would not arrive before it ran out of cash in the midst of an "astonishing" decline in bookings and revenue due to the coronavirus. Democrats press U.S. Treasury to move quickly on $32 billion aviation grants (Reporting by David Shepardson and Tracy Rucinski; Editing by Lisa Shumaker and Marguerita Choy) ((David.Shepardson@thomsonreuters.com; 2028988324;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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RavnAir - which has a partnership with Alaska Airlines ALK.N and interline agreements with American Airlines AAL.O, United Airlines UAL.O and Delta DAL.N - said it applied on Friday for federal payroll support but did not know if or when it would be granted. By David Shepardson and Tracy Rucinski WASHINGTON/CHICAGO, April 6 (Reuters) - RavnAir Group, the largest regional carrier in Alaska, filed for bankruptcy on Sunday and grounded all of its 72 planes, saying it was clear that government aid would not arrive before it ran out of cash in the midst of an "astonishing" decline in bookings and revenue due to the coronavirus. Its Chapter 11 filing underscores the challenges facing other U.S. regional carriers that, like larger airlines, are seeking federal aid to help them through the worst downturn the industry has ever faced.
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6091.0
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2020-04-06 00:00:00 UTC
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BUZZ-U.S. STOCKS ON THE MOVE-Gilead Sciences, Wayfair, Immunomedics, Akers Bioscience
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AAL
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https://www.nasdaq.com/articles/buzz-u.s.-stocks-on-the-move-gilead-sciences-wayfair-immunomedics-akers-bioscience-2020-04
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nan
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nan
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Eikon search string for individual stock moves: STXBZ
The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi
The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh
The S&P 500 was on track to recover about $1 trillion in market value in a furious rally on Monday after a drop in the daily death toll in New York, the country's biggest coronavirus hot spot, raised hopes that the pandemic could level off soon. .N
At 13:54 ET, the Dow Jones Industrial Average .DJI was up 5.98% at 22,312.39. The S&P 500 .SPX was up 5.85% at 2,634.14 and the Nasdaq Composite .IXIC was up 5.85% at 7,804.414. The top three S&P 500 .PG.INX percentage gainers: ** Capri Holdings Ltd CPRI.N, up 31.2 % ** Carnival Corp CCL.N, up 26.7 % ** PVH Corp PVH.N, up 26.2 % The top three S&P 500 .PL.INX percentage losers: ** Carrier Global Corp CARR.N, down 6.3 % ** Robert Half International RHI.N, down 3.8 % ** Gilead Sciences GILD.OQ, down 2.1 % The top three NYSE .PG.N percentage gainers: ** Dillard DDS.N, up 42.4 % ** Cherry Hill Mortgage CHMI.N, up 40.8 % ** Wayfair Inc W.N, up 38.9 % The top three NYSE .PL.N percentage losers: ** Vanguard US Multifactor Fund;ETF VFMF.N, down 31.6 % ** Global X Founder-Run Companies ETF BOSS.N, down 26.8 % ** Direxion Daily Semiconductor Bear 3X SOXS.N, down 26 % The top three Nasdaq .PG.O percentage gainers: ** Akers Bioscience AKER.O, up 133.2 % ** Immunomedics IMMU.O, up 96.5 % The top three Nasdaq .PL.O percentage losers: ** Unico American UNAM.O, down 21 % ** Luckin Coffe Inc LK.O, down 16.4 % ** Quotient Ltd QTNT.O: up 19.3%
Quotient Ltd develops coronavirus antibody test; shares jump ** Woodward Inc WWD.O: up 15.6% ** Hexcel Corp HXL.N: down 3.3%
Aero suppliers Hexcel, Woodward scrap $6.4 bln merger on coronavirus risks ** GoDaddy Inc GDDY.N: up 10.4%
GoDaddy Inc: Rises as Wedbush upgrades on relative resilience to virus pressures ** IBM IBM.N: up 6.1%
IBM: Rises after naming former BofA CTO as cloud business head ** Xcel Energy XEL.O: up 7.1%
Xcel Energy: Climbs on deal to sell natural gas power plant ** Thermo Fisher TMO.N: up 6.4%
Thermo Fisher: Long-term fundamentals intact despite coronavirus hit -analysts ** Ulta Beauty ULTA.N: up 20.1%
JPM adds Ulta Beauty to 'focus list' ** Wayfair W.N: up 38.3%
Wayfair: Rises as co expects to meet or exceed Q1 targets ** MaxLiner MXL.N: up 25.8%
MaxLiner to buy Intel's home gateway assets, shares rise ** Spotify SPOT.N: up 0.4%
Spotify: Raymond James downgrades on coronavirus risks, shares fall ** Esperion Therapeutics ESPR.O: up 6%
Esperion: Up as cholesterol drug gets approval in Europe, co enters license deal ** Axsome Therapeutics AXSM.O: up 1.7%
Axsome Therapeutics: Rises after migraine drug meets main goals in late-stage study ** Netflix NFLX.O: up 3.3%
Netflix: SunTrust Robinson sees 9.5 mln more subscribers in Q1 ** Cisco Systems CSCO.O: up 4.1% ** Dell Technologies Inc DELL.N: up 5.6% ** Pure Storage PSTG.N: up 10.0% ** Hewlett Packard Enterprises HPE.N: up 5.2%
Raymond James cuts PTs of IT service providers ** Myriad Genetics MYGN.O: up 17.1%
Myriad Genetics: Rises after cancer test launch in Japan ** Capri Holdings CPRI.N: up 29.9%
Capri Holdings: Up after co furloughs N.America store staff, cuts salaries ** Akers Biosciences AKER.O: up 123.2%
Akers Biosciences jumps on progress in COVID-19 vaccine development ** HyreCar HYRE.O: up 23.9%
HyreCar surges on strong Q1 revenue forecast ** GW Pharma GWPH.O: up 4.4%
GW Pharma: Rises after seizure drug removed from controlled substance list ** Livent Corp LTHM.N: up 7.6%
Livent Corp jumps on resuming Argentina lithium production ** RH RH.N: up 16.6%
RH: Surges after announcing job cuts, cost savings ** Anworth Mortgage Asset Corp ANH.N: up 20.1%
Anworth Mortgage rallies as REIT reduces MBS borrowings; may delay dividend ** Hewlett Packard HPE.N: up 5.2%
Hewlett Packard withdraws FY20 outlook amid virus outbreak ** Immunomedics IMMU.O: up 97.4%
Immunomedics soars on compelling trial data on breast cancer drug ** Vir Biotech VIR.O: up 29.9%
Vir Biotech jumps on GSK's $250 mln investment, deal for potential COVID-19 drug ** Advanced Micro Devices AMD.O: up 8.9% ** Applied Materials AMAT.O: up 8.5% ** Intel Corp INTC.O: up 6.2% ** Qualcomm Inc QCOM.O: up 7.2% ** Xilinx Inc XLNX.O: up 5.7% ** KLA Corp KLAC.O: up 13.9%
Nomura Instinet sees opportunity in semiconductors amid virus outbreak- TheFly.com ** Millendo Therapeutics MLND.O: down 68.6%
Millendo Therapeutics dives on scrapping drug trial for genetic illness ** Inovio Pharmaceuticals INO.O: up 10.9%
Inovio rises on FDA nod for COVID-19 vaccine clinical trial ** CVS Health Corp CVS.N: up 1.6% CVS Health Corp: Rises on launch of two new drive-through COVID-19 testing sites ** Menlo Therapeutics MNLO.O: down 48.5% Menlo: Falls as skin treatment trials fail to meet goals ** RedHill Biopharma RDHL.O: up 23.9% RedHill Biopharma: Rises after dosing first COVID-19 patient with cancer drug ** Gilead Sciences GILD.O: down 2.1% Gilead Sciences: Rises on plan to ramp up production of COVID-19 trial drug ** Textron Inc TXT.N: up 10.2% Textron's business jet deliveries could fall by 25% in 2020 on virus hit - Jefferies ** Zoom Video ZM.O: down 8.1% Zoom Video: Falls on report of school districts banning Zoom, CS downgrade ** Starbucks SBUX.O: up 5.2% Starbucks: Brokerage raises PT, sees possible boost as Chinese rival faces new challenges ** Co-Diagnostics CODX.O: up 29.4% Co-Diagnostics: Jumps after FDA allows emergency use of co's COVID-19 test ** XBiotech Inc XBIT.O: up 8.4% XBiotech: Jumps on collaboration to develop COVID-19 treatment ** Hilton Worldwide Holdings HLT.N: up 13.0% ** Wynn Resorts WYNN.O: up 14.1% ** Royal Caribbean Cruises RCL.N: up 19.1% ** Marriott International Inc MAR.O: up 17.9% ** Carnival Corp CCL.N: up 25.7% ** Norwegian Cruise Line Holdings NCLH.N: up 17.8% ** Booking Holdings BKNG.O: up 8.8% ** Expedia Group Inc EXPE.O: up 8.7% Travel and leisure stocks climb on hopes of virus slowdown ** Goldman Sachs GS.N: up 6.5% ** JPMorgan JPM.N: up 5.9% ** Citigroup Inc C.N: up 8.5% ** Wells Fargo WFC.N: up 7.6% ** Bank of America BAC.N: up 5.9% ** Morgan Stanley MS.N: up 8.1% U.S. big banks rise amid broad market gains, higher yields ** Hess Corp HES.N: up 3.8% Hess: JPM sees strong Q1 but warns of challenges from extended oil weakness ** Tesla Inc TSLA.O: up 6.1% Tesla Inc: Jefferies upgrades to "buy" on robust Q1 deliveries
The 11 major S&P 500 sectors:
Communication Services
.SPLRCL
up 5.64%
Consumer Discretionary
.SPLRCD
up 6.83%
Consumer Staples
.SPLRCS
up 3.06%
Energy
.SPNY
up 4.03%
Financial
.SPSY
up 6.45%
Health
.SPXHC
up 4.24%
Industrial
.SPLRCI
up 6.45%
Information Technology
.SPLRCT
up 6.71%
Materials
.SPLRCM
up 7.08%
Real Estate
.SPLRCR
up 6.55%
Utilities
.SPLRCU
up 7.99%
(Compiled by Sanjana Shivdas in Bengaluru)
((SanjanaSitara.Shivdas@thomsonreuters.com; within U.S. +1 646 223 8780, outside U.S. +91 80 6749 1642; Twitter: @SanjanaShivdas;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Eikon search string for individual stock moves: STXBZ The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh The S&P 500 was on track to recover about $1 trillion in market value in a furious rally on Monday after a drop in the daily death toll in New York, the country's biggest coronavirus hot spot, raised hopes that the pandemic could level off soon. The top three S&P 500 .PG.INX percentage gainers: ** Capri Holdings Ltd CPRI.N, up 31.2 % ** Carnival Corp CCL.N, up 26.7 % ** PVH Corp PVH.N, up 26.2 % The top three S&P 500 .PL.INX percentage losers: ** Carrier Global Corp CARR.N, down 6.3 % ** Robert Half International RHI.N, down 3.8 % ** Gilead Sciences GILD.OQ, down 2.1 % The top three NYSE .PG.N percentage gainers: ** Dillard DDS.N, up 42.4 % ** Cherry Hill Mortgage CHMI.N, up 40.8 % ** Wayfair Inc W.N, up 38.9 % The top three NYSE .PL.N percentage losers: ** Vanguard US Multifactor Fund;ETF VFMF.N, down 31.6 % ** Global X Founder-Run Companies ETF BOSS.N, down 26.8 % ** Direxion Daily Semiconductor Bear 3X SOXS.N, down 26 % The top three Nasdaq .PG.O percentage gainers: ** Akers Bioscience AKER.O, up 133.2 % ** Immunomedics IMMU.O, up 96.5 % The top three Nasdaq .PL.O percentage losers: ** Unico American UNAM.O, down 21 % ** Luckin Coffe Inc LK.O, down 16.4 % ** Quotient Ltd QTNT.O: up 19.3% Quotient Ltd develops coronavirus antibody test; shares jump ** Woodward Inc WWD.O: up 15.6% ** Hexcel Corp HXL.N: down 3.3% Aero suppliers Hexcel, Woodward scrap $6.4 bln merger on coronavirus risks ** GoDaddy Inc GDDY.N: up 10.4% GoDaddy Inc: Rises as Wedbush upgrades on relative resilience to virus pressures ** IBM IBM.N: up 6.1% IBM: Rises after naming former BofA CTO as cloud business head ** Xcel Energy XEL.O: up 7.1% Xcel Energy: Climbs on deal to sell natural gas power plant ** Thermo Fisher TMO.N: up 6.4% Thermo Fisher: Long-term fundamentals intact despite coronavirus hit -analysts ** Ulta Beauty ULTA.N: up 20.1% JPM adds Ulta Beauty to 'focus list' ** Wayfair W.N: up 38.3% Wayfair: Rises as co expects to meet or exceed Q1 targets ** MaxLiner MXL.N: up 25.8% MaxLiner to buy Intel's home gateway assets, shares rise ** Spotify SPOT.N: up 0.4% Spotify: Raymond James downgrades on coronavirus risks, shares fall ** Esperion Therapeutics ESPR.O: up 6% Esperion: Up as cholesterol drug gets approval in Europe, co enters license deal ** Axsome Therapeutics AXSM.O: up 1.7% Axsome Therapeutics: Rises after migraine drug meets main goals in late-stage study ** Netflix NFLX.O: up 3.3% Netflix: SunTrust Robinson sees 9.5 mln more subscribers in Q1 ** Cisco Systems CSCO.O: up 4.1% ** Dell Technologies Inc DELL.N: up 5.6% ** Pure Storage PSTG.N: up 10.0% ** Hewlett Packard Enterprises HPE.N: up 5.2% Raymond James cuts PTs of IT service providers ** Myriad Genetics MYGN.O: up 17.1% Myriad Genetics: Rises after cancer test launch in Japan ** Capri Holdings CPRI.N: up 29.9% Capri Holdings: Up after co furloughs N.America store staff, cuts salaries ** Akers Biosciences AKER.O: up 123.2% Akers Biosciences jumps on progress in COVID-19 vaccine development ** HyreCar HYRE.O: up 23.9% HyreCar surges on strong Q1 revenue forecast ** GW Pharma GWPH.O: up 4.4% GW Pharma: Rises after seizure drug removed from controlled substance list ** Livent Corp LTHM.N: up 7.6% Livent Corp jumps on resuming Argentina lithium production ** RH RH.N: up 16.6% RH: Surges after announcing job cuts, cost savings ** Anworth Mortgage Asset Corp ANH.N: up 20.1% Anworth Mortgage rallies as REIT reduces MBS borrowings; may delay dividend ** Hewlett Packard HPE.N: up 5.2% Hewlett Packard withdraws FY20 outlook amid virus outbreak ** Immunomedics IMMU.O: up 97.4% Immunomedics soars on compelling trial data on breast cancer drug ** Vir Biotech VIR.O: up 29.9% Vir Biotech jumps on GSK's $250 mln investment, deal for potential COVID-19 drug ** Advanced Micro Devices AMD.O: up 8.9% ** Applied Materials AMAT.O: up 8.5% ** Intel Corp INTC.O: up 6.2% ** Qualcomm Inc QCOM.O: up 7.2% ** Xilinx Inc XLNX.O: up 5.7% ** KLA Corp KLAC.O: up 13.9% Nomura Instinet sees opportunity in semiconductors amid virus outbreak- TheFly.com ** Millendo Therapeutics MLND.O: down 68.6% Millendo Therapeutics dives on scrapping drug trial for genetic illness ** Inovio Pharmaceuticals INO.O: up 10.9% Inovio rises on FDA nod for COVID-19 vaccine clinical trial ** CVS Health Corp CVS.N: up 1.6% CVS Health Corp: Rises on launch of two new drive-through COVID-19 testing sites ** Menlo Therapeutics MNLO.O: down 48.5% Menlo: Falls as skin treatment trials fail to meet goals ** RedHill Biopharma RDHL.O: up 23.9% RedHill Biopharma: Rises after dosing first COVID-19 patient with cancer drug ** Gilead Sciences GILD.O: down 2.1% Gilead Sciences: Rises on plan to ramp up production of COVID-19 trial drug ** Textron Inc TXT.N: up 10.2% Textron's business jet deliveries could fall by 25% in 2020 on virus hit - Jefferies ** Zoom Video ZM.O: down 8.1% Zoom Video: Falls on report of school districts banning Zoom, CS downgrade ** Starbucks SBUX.O: up 5.2% Starbucks: Brokerage raises PT, sees possible boost as Chinese rival faces new challenges ** Co-Diagnostics CODX.O: up 29.4% Co-Diagnostics: Jumps after FDA allows emergency use of co's COVID-19 test ** XBiotech Inc XBIT.O: up 8.4% XBiotech: Jumps on collaboration to develop COVID-19 treatment ** Hilton Worldwide Holdings HLT.N: up 13.0% ** Wynn Resorts WYNN.O: up 14.1% ** Royal Caribbean Cruises RCL.N: up 19.1% ** Marriott International Inc MAR.O: up 17.9% ** Carnival Corp CCL.N: up 25.7% ** Norwegian Cruise Line Holdings NCLH.N: up 17.8% ** Booking Holdings BKNG.O: up 8.8% ** Expedia Group Inc EXPE.O: up 8.7% Travel and leisure stocks climb on hopes of virus slowdown ** Goldman Sachs GS.N: up 6.5% ** JPMorgan JPM.N: up 5.9% ** Citigroup Inc C.N: up 8.5% ** Wells Fargo WFC.N: up 7.6% ** Bank of America BAC.N: up 5.9% ** Morgan Stanley MS.N: up 8.1% U.S. big banks rise amid broad market gains, higher yields ** Hess Corp HES.N: up 3.8% Hess: JPM sees strong Q1 but warns of challenges from extended oil weakness ** Tesla Inc TSLA.O: up 6.1% Tesla Inc: Jefferies upgrades to "buy" on robust Q1 deliveries The 11 major S&P 500 sectors: Communication Services up 7.99% (Compiled by Sanjana Shivdas in Bengaluru) ((SanjanaSitara.Shivdas@thomsonreuters.com; within U.S. +1 646 223 8780, outside U.S. +91 80 6749 1642; Twitter: @SanjanaShivdas;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Eikon search string for individual stock moves: STXBZ The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh The S&P 500 was on track to recover about $1 trillion in market value in a furious rally on Monday after a drop in the daily death toll in New York, the country's biggest coronavirus hot spot, raised hopes that the pandemic could level off soon. The top three S&P 500 .PG.INX percentage gainers: ** Capri Holdings Ltd CPRI.N, up 31.2 % ** Carnival Corp CCL.N, up 26.7 % ** PVH Corp PVH.N, up 26.2 % The top three S&P 500 .PL.INX percentage losers: ** Carrier Global Corp CARR.N, down 6.3 % ** Robert Half International RHI.N, down 3.8 % ** Gilead Sciences GILD.OQ, down 2.1 % The top three NYSE .PG.N percentage gainers: ** Dillard DDS.N, up 42.4 % ** Cherry Hill Mortgage CHMI.N, up 40.8 % ** Wayfair Inc W.N, up 38.9 % The top three NYSE .PL.N percentage losers: ** Vanguard US Multifactor Fund;ETF VFMF.N, down 31.6 % ** Global X Founder-Run Companies ETF BOSS.N, down 26.8 % ** Direxion Daily Semiconductor Bear 3X SOXS.N, down 26 % The top three Nasdaq .PG.O percentage gainers: ** Akers Bioscience AKER.O, up 133.2 % ** Immunomedics IMMU.O, up 96.5 % The top three Nasdaq .PL.O percentage losers: ** Unico American UNAM.O, down 21 % ** Luckin Coffe Inc LK.O, down 16.4 % ** Quotient Ltd QTNT.O: up 19.3% Quotient Ltd develops coronavirus antibody test; shares jump ** Woodward Inc WWD.O: up 15.6% ** Hexcel Corp HXL.N: down 3.3% Aero suppliers Hexcel, Woodward scrap $6.4 bln merger on coronavirus risks ** GoDaddy Inc GDDY.N: up 10.4% GoDaddy Inc: Rises as Wedbush upgrades on relative resilience to virus pressures ** IBM IBM.N: up 6.1% IBM: Rises after naming former BofA CTO as cloud business head ** Xcel Energy XEL.O: up 7.1% Xcel Energy: Climbs on deal to sell natural gas power plant ** Thermo Fisher TMO.N: up 6.4% Thermo Fisher: Long-term fundamentals intact despite coronavirus hit -analysts ** Ulta Beauty ULTA.N: up 20.1% JPM adds Ulta Beauty to 'focus list' ** Wayfair W.N: up 38.3% Wayfair: Rises as co expects to meet or exceed Q1 targets ** MaxLiner MXL.N: up 25.8% MaxLiner to buy Intel's home gateway assets, shares rise ** Spotify SPOT.N: up 0.4% Spotify: Raymond James downgrades on coronavirus risks, shares fall ** Esperion Therapeutics ESPR.O: up 6% Esperion: Up as cholesterol drug gets approval in Europe, co enters license deal ** Axsome Therapeutics AXSM.O: up 1.7% Axsome Therapeutics: Rises after migraine drug meets main goals in late-stage study ** Netflix NFLX.O: up 3.3% Netflix: SunTrust Robinson sees 9.5 mln more subscribers in Q1 ** Cisco Systems CSCO.O: up 4.1% ** Dell Technologies Inc DELL.N: up 5.6% ** Pure Storage PSTG.N: up 10.0% ** Hewlett Packard Enterprises HPE.N: up 5.2% Raymond James cuts PTs of IT service providers ** Myriad Genetics MYGN.O: up 17.1% Myriad Genetics: Rises after cancer test launch in Japan ** Capri Holdings CPRI.N: up 29.9% Capri Holdings: Up after co furloughs N.America store staff, cuts salaries ** Akers Biosciences AKER.O: up 123.2% Akers Biosciences jumps on progress in COVID-19 vaccine development ** HyreCar HYRE.O: up 23.9% HyreCar surges on strong Q1 revenue forecast ** GW Pharma GWPH.O: up 4.4% GW Pharma: Rises after seizure drug removed from controlled substance list ** Livent Corp LTHM.N: up 7.6% Livent Corp jumps on resuming Argentina lithium production ** RH RH.N: up 16.6% RH: Surges after announcing job cuts, cost savings ** Anworth Mortgage Asset Corp ANH.N: up 20.1% Anworth Mortgage rallies as REIT reduces MBS borrowings; may delay dividend ** Hewlett Packard HPE.N: up 5.2% Hewlett Packard withdraws FY20 outlook amid virus outbreak ** Immunomedics IMMU.O: up 97.4% Immunomedics soars on compelling trial data on breast cancer drug ** Vir Biotech VIR.O: up 29.9% Vir Biotech jumps on GSK's $250 mln investment, deal for potential COVID-19 drug ** Advanced Micro Devices AMD.O: up 8.9% ** Applied Materials AMAT.O: up 8.5% ** Intel Corp INTC.O: up 6.2% ** Qualcomm Inc QCOM.O: up 7.2% ** Xilinx Inc XLNX.O: up 5.7% ** KLA Corp KLAC.O: up 13.9% Nomura Instinet sees opportunity in semiconductors amid virus outbreak- TheFly.com ** Millendo Therapeutics MLND.O: down 68.6% Millendo Therapeutics dives on scrapping drug trial for genetic illness ** Inovio Pharmaceuticals INO.O: up 10.9% Inovio rises on FDA nod for COVID-19 vaccine clinical trial ** CVS Health Corp CVS.N: up 1.6% CVS Health Corp: Rises on launch of two new drive-through COVID-19 testing sites ** Menlo Therapeutics MNLO.O: down 48.5% Menlo: Falls as skin treatment trials fail to meet goals ** RedHill Biopharma RDHL.O: up 23.9% RedHill Biopharma: Rises after dosing first COVID-19 patient with cancer drug ** Gilead Sciences GILD.O: down 2.1% Gilead Sciences: Rises on plan to ramp up production of COVID-19 trial drug ** Textron Inc TXT.N: up 10.2% Textron's business jet deliveries could fall by 25% in 2020 on virus hit - Jefferies ** Zoom Video ZM.O: down 8.1% Zoom Video: Falls on report of school districts banning Zoom, CS downgrade ** Starbucks SBUX.O: up 5.2% Starbucks: Brokerage raises PT, sees possible boost as Chinese rival faces new challenges ** Co-Diagnostics CODX.O: up 29.4% Co-Diagnostics: Jumps after FDA allows emergency use of co's COVID-19 test ** XBiotech Inc XBIT.O: up 8.4% XBiotech: Jumps on collaboration to develop COVID-19 treatment ** Hilton Worldwide Holdings HLT.N: up 13.0% ** Wynn Resorts WYNN.O: up 14.1% ** Royal Caribbean Cruises RCL.N: up 19.1% ** Marriott International Inc MAR.O: up 17.9% ** Carnival Corp CCL.N: up 25.7% ** Norwegian Cruise Line Holdings NCLH.N: up 17.8% ** Booking Holdings BKNG.O: up 8.8% ** Expedia Group Inc EXPE.O: up 8.7% Travel and leisure stocks climb on hopes of virus slowdown ** Goldman Sachs GS.N: up 6.5% ** JPMorgan JPM.N: up 5.9% ** Citigroup Inc C.N: up 8.5% ** Wells Fargo WFC.N: up 7.6% ** Bank of America BAC.N: up 5.9% ** Morgan Stanley MS.N: up 8.1% U.S. big banks rise amid broad market gains, higher yields ** Hess Corp HES.N: up 3.8% Hess: JPM sees strong Q1 but warns of challenges from extended oil weakness ** Tesla Inc TSLA.O: up 6.1% Tesla Inc: Jefferies upgrades to "buy" on robust Q1 deliveries The 11 major S&P 500 sectors: Communication Services up 7.99% (Compiled by Sanjana Shivdas in Bengaluru) ((SanjanaSitara.Shivdas@thomsonreuters.com; within U.S. +1 646 223 8780, outside U.S. +91 80 6749 1642; Twitter: @SanjanaShivdas;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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.N At 13:54 ET, the Dow Jones Industrial Average .DJI was up 5.98% at 22,312.39. The top three S&P 500 .PG.INX percentage gainers: ** Capri Holdings Ltd CPRI.N, up 31.2 % ** Carnival Corp CCL.N, up 26.7 % ** PVH Corp PVH.N, up 26.2 % The top three S&P 500 .PL.INX percentage losers: ** Carrier Global Corp CARR.N, down 6.3 % ** Robert Half International RHI.N, down 3.8 % ** Gilead Sciences GILD.OQ, down 2.1 % The top three NYSE .PG.N percentage gainers: ** Dillard DDS.N, up 42.4 % ** Cherry Hill Mortgage CHMI.N, up 40.8 % ** Wayfair Inc W.N, up 38.9 % The top three NYSE .PL.N percentage losers: ** Vanguard US Multifactor Fund;ETF VFMF.N, down 31.6 % ** Global X Founder-Run Companies ETF BOSS.N, down 26.8 % ** Direxion Daily Semiconductor Bear 3X SOXS.N, down 26 % The top three Nasdaq .PG.O percentage gainers: ** Akers Bioscience AKER.O, up 133.2 % ** Immunomedics IMMU.O, up 96.5 % The top three Nasdaq .PL.O percentage losers: ** Unico American UNAM.O, down 21 % ** Luckin Coffe Inc LK.O, down 16.4 % ** Quotient Ltd QTNT.O: up 19.3% Quotient Ltd develops coronavirus antibody test; shares jump ** Woodward Inc WWD.O: up 15.6% ** Hexcel Corp HXL.N: down 3.3% Aero suppliers Hexcel, Woodward scrap $6.4 bln merger on coronavirus risks ** GoDaddy Inc GDDY.N: up 10.4% GoDaddy Inc: Rises as Wedbush upgrades on relative resilience to virus pressures ** IBM IBM.N: up 6.1% IBM: Rises after naming former BofA CTO as cloud business head ** Xcel Energy XEL.O: up 7.1% Xcel Energy: Climbs on deal to sell natural gas power plant ** Thermo Fisher TMO.N: up 6.4% Thermo Fisher: Long-term fundamentals intact despite coronavirus hit -analysts ** Ulta Beauty ULTA.N: up 20.1% JPM adds Ulta Beauty to 'focus list' ** Wayfair W.N: up 38.3% Wayfair: Rises as co expects to meet or exceed Q1 targets ** MaxLiner MXL.N: up 25.8% MaxLiner to buy Intel's home gateway assets, shares rise ** Spotify SPOT.N: up 0.4% Spotify: Raymond James downgrades on coronavirus risks, shares fall ** Esperion Therapeutics ESPR.O: up 6% Esperion: Up as cholesterol drug gets approval in Europe, co enters license deal ** Axsome Therapeutics AXSM.O: up 1.7% Axsome Therapeutics: Rises after migraine drug meets main goals in late-stage study ** Netflix NFLX.O: up 3.3% Netflix: SunTrust Robinson sees 9.5 mln more subscribers in Q1 ** Cisco Systems CSCO.O: up 4.1% ** Dell Technologies Inc DELL.N: up 5.6% ** Pure Storage PSTG.N: up 10.0% ** Hewlett Packard Enterprises HPE.N: up 5.2% Raymond James cuts PTs of IT service providers ** Myriad Genetics MYGN.O: up 17.1% Myriad Genetics: Rises after cancer test launch in Japan ** Capri Holdings CPRI.N: up 29.9% Capri Holdings: Up after co furloughs N.America store staff, cuts salaries ** Akers Biosciences AKER.O: up 123.2% Akers Biosciences jumps on progress in COVID-19 vaccine development ** HyreCar HYRE.O: up 23.9% HyreCar surges on strong Q1 revenue forecast ** GW Pharma GWPH.O: up 4.4% GW Pharma: Rises after seizure drug removed from controlled substance list ** Livent Corp LTHM.N: up 7.6% Livent Corp jumps on resuming Argentina lithium production ** RH RH.N: up 16.6% RH: Surges after announcing job cuts, cost savings ** Anworth Mortgage Asset Corp ANH.N: up 20.1% Anworth Mortgage rallies as REIT reduces MBS borrowings; may delay dividend ** Hewlett Packard HPE.N: up 5.2% Hewlett Packard withdraws FY20 outlook amid virus outbreak ** Immunomedics IMMU.O: up 97.4% Immunomedics soars on compelling trial data on breast cancer drug ** Vir Biotech VIR.O: up 29.9% Vir Biotech jumps on GSK's $250 mln investment, deal for potential COVID-19 drug ** Advanced Micro Devices AMD.O: up 8.9% ** Applied Materials AMAT.O: up 8.5% ** Intel Corp INTC.O: up 6.2% ** Qualcomm Inc QCOM.O: up 7.2% ** Xilinx Inc XLNX.O: up 5.7% ** KLA Corp KLAC.O: up 13.9% Nomura Instinet sees opportunity in semiconductors amid virus outbreak- TheFly.com ** Millendo Therapeutics MLND.O: down 68.6% Millendo Therapeutics dives on scrapping drug trial for genetic illness ** Inovio Pharmaceuticals INO.O: up 10.9% Inovio rises on FDA nod for COVID-19 vaccine clinical trial ** CVS Health Corp CVS.N: up 1.6% CVS Health Corp: Rises on launch of two new drive-through COVID-19 testing sites ** Menlo Therapeutics MNLO.O: down 48.5% Menlo: Falls as skin treatment trials fail to meet goals ** RedHill Biopharma RDHL.O: up 23.9% RedHill Biopharma: Rises after dosing first COVID-19 patient with cancer drug ** Gilead Sciences GILD.O: down 2.1% Gilead Sciences: Rises on plan to ramp up production of COVID-19 trial drug ** Textron Inc TXT.N: up 10.2% Textron's business jet deliveries could fall by 25% in 2020 on virus hit - Jefferies ** Zoom Video ZM.O: down 8.1% Zoom Video: Falls on report of school districts banning Zoom, CS downgrade ** Starbucks SBUX.O: up 5.2% Starbucks: Brokerage raises PT, sees possible boost as Chinese rival faces new challenges ** Co-Diagnostics CODX.O: up 29.4% Co-Diagnostics: Jumps after FDA allows emergency use of co's COVID-19 test ** XBiotech Inc XBIT.O: up 8.4% XBiotech: Jumps on collaboration to develop COVID-19 treatment ** Hilton Worldwide Holdings HLT.N: up 13.0% ** Wynn Resorts WYNN.O: up 14.1% ** Royal Caribbean Cruises RCL.N: up 19.1% ** Marriott International Inc MAR.O: up 17.9% ** Carnival Corp CCL.N: up 25.7% ** Norwegian Cruise Line Holdings NCLH.N: up 17.8% ** Booking Holdings BKNG.O: up 8.8% ** Expedia Group Inc EXPE.O: up 8.7% Travel and leisure stocks climb on hopes of virus slowdown ** Goldman Sachs GS.N: up 6.5% ** JPMorgan JPM.N: up 5.9% ** Citigroup Inc C.N: up 8.5% ** Wells Fargo WFC.N: up 7.6% ** Bank of America BAC.N: up 5.9% ** Morgan Stanley MS.N: up 8.1% U.S. big banks rise amid broad market gains, higher yields ** Hess Corp HES.N: up 3.8% Hess: JPM sees strong Q1 but warns of challenges from extended oil weakness ** Tesla Inc TSLA.O: up 6.1% Tesla Inc: Jefferies upgrades to "buy" on robust Q1 deliveries The 11 major S&P 500 sectors: Communication Services up 5.64% Consumer Discretionary
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Eikon search string for individual stock moves: STXBZ The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh The S&P 500 was on track to recover about $1 trillion in market value in a furious rally on Monday after a drop in the daily death toll in New York, the country's biggest coronavirus hot spot, raised hopes that the pandemic could level off soon. .N At 13:54 ET, the Dow Jones Industrial Average .DJI was up 5.98% at 22,312.39. The S&P 500 .SPX was up 5.85% at 2,634.14 and the Nasdaq Composite .IXIC was up 5.85% at 7,804.414.
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6092.0
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2020-04-06 00:00:00 UTC
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U.S. airlines ease loyalty programs in coronavirus travel slump
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AAL
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https://www.nasdaq.com/articles/u.s.-airlines-ease-loyalty-programs-in-coronavirus-travel-slump-2020-04-06
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nan
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nan
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By Tracy Rucinski
April 6 (Reuters) - U.S. airlines are extendingloyalty program benefits and status into 2021 for members homebound because of the new coronavirus.
Business and leisure travel have virtually ground to a halt worldwide, forcing airlines to drastically reduce flying schedules and ground their jets. Before the pandemic, carriers had been actively courting business or first-class travelers in particular to boost revenue as competition intensified.
United Airlines Holdings Inc UAL.Ois extending current members' MileagePlus Premier status through January 2022, reducing thresholds for Premier qualification by 50%, offering more credit card points and making it easier to upgrade seating.
Delta Air Lines Inc DAL.Nis extending its SkyMiles Medallion Members' status as well as the expiration dates for upgrade certificates and travel vouchers.
American Airlines Group Inc AAL.O on Monday had no updates on its elite program, but said it was continuing to assess the situation.
Airlines are also offering waivers on change fees, and in some cases refunds, for travel booked in the next month or two. Terms and conditions vary by airline.
The U.S. Transportation Department has told airlines they must refund tickets for flights that they cancel, or make a significant schedule change that passengers do not accept, following a rising number of consumer complaints and inquiries.
U.S. and foreign airlines have canceled hundreds of thousands of flights and eliminated millions of seats as travel demand has plunged because of the coronavirus pandemic. Facing what carriers call an unprecedented crisis, many are seeking government aid to help them avoid employee layoffs.
In the United States, top Democrats in Congress on Sunday urged the U.S. Treasury to move quickly to award $32 billion in cash assistance to airlines and airport contractors without setting onerous requirements that could lead to bankruptcies.
(Reporting by Tracy Rucinski; Editing by Richard Chang)
((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.
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American Airlines Group Inc AAL.O on Monday had no updates on its elite program, but said it was continuing to assess the situation. The U.S. Transportation Department has told airlines they must refund tickets for flights that they cancel, or make a significant schedule change that passengers do not accept, following a rising number of consumer complaints and inquiries. U.S. and foreign airlines have canceled hundreds of thousands of flights and eliminated millions of seats as travel demand has plunged because of the coronavirus pandemic.
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American Airlines Group Inc AAL.O on Monday had no updates on its elite program, but said it was continuing to assess the situation. By Tracy Rucinski April 6 (Reuters) - U.S. airlines are extendingloyalty program benefits and status into 2021 for members homebound because of the new coronavirus. United Airlines Holdings Inc UAL.Ois extending current members' MileagePlus Premier status through January 2022, reducing thresholds for Premier qualification by 50%, offering more credit card points and making it easier to upgrade seating.
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American Airlines Group Inc AAL.O on Monday had no updates on its elite program, but said it was continuing to assess the situation. Business and leisure travel have virtually ground to a halt worldwide, forcing airlines to drastically reduce flying schedules and ground their jets. United Airlines Holdings Inc UAL.Ois extending current members' MileagePlus Premier status through January 2022, reducing thresholds for Premier qualification by 50%, offering more credit card points and making it easier to upgrade seating.
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American Airlines Group Inc AAL.O on Monday had no updates on its elite program, but said it was continuing to assess the situation. By Tracy Rucinski April 6 (Reuters) - U.S. airlines are extendingloyalty program benefits and status into 2021 for members homebound because of the new coronavirus. Business and leisure travel have virtually ground to a halt worldwide, forcing airlines to drastically reduce flying schedules and ground their jets.
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6093.0
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2020-04-06 00:00:00 UTC
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BUZZ-U.S. STOCKS ON THE MOVE-Carnival Corp, Capri Holdings, Kohl's, Immunomedics
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AAL
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https://www.nasdaq.com/articles/buzz-u.s.-stocks-on-the-move-carnival-corp-capri-holdings-kohls-immunomedics-2020-04-06
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nan
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nan
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Eikon search string for individual stock moves: STXBZ
The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi
The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh
The S&P 500 was on track to recoup about $1 trillion in market value in a frantic rally on Monday after New York, the biggest U.S. coronavirus hot spot, reported a fall in daily deaths, raising hopes that the pandemic could level-off soon. .N
At 12:33 ET, the Dow Jones Industrial Average .DJI was up 5.53% at 22,216.62. The S&P 500 .SPX was up 5.50% at 2,625.53 and the Nasdaq Composite .IXIC was up 5.42% at 7,772.803. The top three S&P 500 .PG.INX percentage gainers: ** Carnival Corp CCL.N, up 26.3% ** Capri Holdings Ltd CPRI.N, up 24.4% ** Kohl's Corp KSS.N, up 24.1% The top three S&P 500 .PL.INX percentage losers: ** Carrier Global Corp CARR.N, down 6.4% ** Robert half International RHI.N, down 4.1% ** Eog Resources EOG.N, down 2.2% The top three NYSE .PG.N percentage gainers: ** Cherry Hill Mortgage Investment CHMI.N, up 42.2% ** Wayfair Inc W.N, up 40.1% ** Dillard DDS.N, up 37.3% The top three NYSE .PL.N percentage losers: ** Vanguard US Multifactor Fund;ETF VFMF.N, down 31.6% ** Global X Founder-Run Companies ETF BOSS.N, down 26.8% ** Direxion Daily Semiconductor Bear 3XSOXS.N, down 23.2% The top Nasdaq .PG.O percentage gainers: ** Immunomedics IMMU.O, up 91.4% ** Akers Bioscience AKER.O, up 79.9% The top Nasdaq .PL.O percentage losers: ** Unico American UNAM.O, down 21% ** Luckin Coffe Inc LK.O, down 15.9% ** Spotify SPOT.N: down 0.6%
Spotify: Raymond James downgrades on coronavirus risks, shares fall ** Esperion Therapeutics ESPR.O: up 3.9%
Esperion: Up as cholesterol drug gets approval in Europe, co enters license deal ** Axsome Therapeutics AXSM.O: up 2.1%
Axsome Therapeutics: Rises after migraine drug meets main goals in late-stage study ** Netflix NFLX.O: up 2.8%
Netflix: SunTrust Robinson sees 9.5 mln more subscribers in Q1 ** Cisco Systems CSCO.O: up 4.3% ** Dell Technologies Inc DELL.N: up 6.1% ** Pure Storage PSTG.N: up 11.6% ** Hewlett Packard Enterprises HPE.N: up 7.7%
Raymond James cuts PTs of IT service providers ** Myriad Genetics MYGN.O: up 19.2%
Myriad Genetics: Rises after cancer test launch in Japan ** Capri Holdings CPRI.N: up 25.7%
Capri Holdings: Up after co furloughs N.America store staff, cuts salaries ** Akers Biosciences AKER.O: up 90.0%
Akers Biosciences jumps on progress in COVID-19 vaccine development ** HyreCar HYRE.O: up 23.0%
HyreCar surges on strong Q1 revenue forecast ** GW Pharma GWPH.O: up 3.9%
GW Pharma: Rises after seizure drug removed from controlled substance list ** Livent Corp LTHM.N: up 8.4%
Livent Corp jumps on resuming Argentina lithium production ** RH RH.N: up 11.8%
RH: Surges after announcing job cuts, cost savings ** Anworth Mortgage Asset Corp ANH.N: up 22.5%
Anworth Mortgage rallies as REIT reduces MBS borrowings; may delay dividend ** Hewlett Packard HPE.N: up 7.7%
Hewlett Packard withdraws FY20 outlook amid virus outbreak ** Immunomedics IMMU.O: up 92.6%
Immunomedics soars on compelling trial data on breast cancer drug ** Vir Biotech VIR.O: up 16.9%
Vir Biotech surges on GSK's $250 mln investment, deal for potential COVID-19 drug ** Advanced Micro Devices AMD.O: up 8.1% ** Applied Materials AMAT.O: up 9.4% ** Intel Corp INTC.O: up 5.8% ** Qualcomm Inc QCOM.O: up 7.0% ** Xilinx Inc XLNX.O: up 5.2% ** KLA Corp KLAC.O: up 11.6%
Nomura Instinet sees opportunity in semiconductors amid virus outbreak- TheFly.com ** Millendo Therapeutics MLND.O: down 69.5%
Millendo Therapeutics dives on scrapping drug trial for genetic illness ** Inovio Pharmaceuticals INO.O: up 8.9%
Inovio rises on FDA nod for COVID-19 vaccine clinical trial ** CVS Health Corp CVS.N: up 2.0% CVS Health Corp: Rises on launch of two new drive-through COVID-19 testing sites ** Menlo Therapeutics MNLO.O: down 47.1% Menlo: Falls as skin treatment trials fail to meet goals ** RedHill Biopharma RDHL.O: up 25.8% RedHill Biopharma: Rises after dosing first COVID-19 patient with cancer drug ** Gilead Sciences GILD.O: down 2.1% Gilead Sciences: Rises on plan to ramp up production of COVID-19 trial drug ** Textron Inc TXT.N: up 10.0% Textron's business jet deliveries could fall by 25% in 2020 on virus hit - Jefferies ** Zoom Video ZM.O: down 6.4% Zoom Video: Falls on report of school districts banning Zoom, CS downgrade ** Starbucks SBUX.O: up 4.5% Starbucks: Brokerage raises PT, sees possible boost as Chinese rival faces new challenges ** Co-Diagnostics CODX.O: up 30.1% Co-Diagnostics: Jumps after FDA allows emergency use of co's COVID-19 test ** XBiotech Inc XBIT.O: up 5.7% XBiotech: Jumps on collaboration to develop COVID-19 treatment ** Hilton Worldwide Holdings HLT.N: up 13.1% ** Wynn Resorts WYNN.O: up 14.7% ** Royal Caribbean Cruises RCL.N: up 17.8% ** Marriott International Inc MAR.O: up 17.4% ** Carnival Corp CCL.N: up 22.9% ** Norwegian Cruise Line Holdings NCLH.N: up 15.6% ** Booking Holdings BKNG.O: up 9.6% ** Expedia Group Inc EXPE.O: up 8.4% Travel and leisure stocks climb on hopes of virus slowdown ** Goldman Sachs GS.N: up 6.7% ** JPMorgan JPM.N: up 6.3% ** Citigroup Inc C.N: up 8.7% ** Wells Fargo WFC.N: up 8.0% ** Bank of America BAC.N: up 6.1% ** Morgan Stanley MS.N: up 8.1% U.S. big banks rise amid broad market gains, higher yields ** Hess Corp HES.N: up 4.9% Hess: JPM sees strong Q1 but warns of challenges from extended oil weakness ** Tesla Inc TSLA.O: up 6.4% Tesla Inc: Jefferies upgrades to "buy" on robust Q1 deliveries
The 11 major S&P 500 sectors:
Communication Services
.SPLRCL
up 5.04%
Consumer Discretionary
.SPLRCD
up 6.20%
Consumer Staples
.SPLRCS
up 3.00%
Energy
.SPNY
up 3.25%
Financial
.SPSY
up 6.32%
Health
.SPXHC
up 4.10%
Industrial
.SPLRCI
up 6.04%
Information Technology
.SPLRCT
up 6.14%
Materials
.SPLRCM
up 7.46%
Real Estate
.SPLRCR
up 6.84%
Utilities
.SPLRCU
up 8.00%
(Compiled by Sanjana Shivdas in Bengaluru)
((SanjanaSitara.Shivdas@thomsonreuters.com; within U.S. +1 646 223 8780, outside U.S. +91 80 6749 1642; Twitter: @SanjanaShivdas;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Eikon search string for individual stock moves: STXBZ The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh The S&P 500 was on track to recoup about $1 trillion in market value in a frantic rally on Monday after New York, the biggest U.S. coronavirus hot spot, reported a fall in daily deaths, raising hopes that the pandemic could level-off soon. The top three S&P 500 .PG.INX percentage gainers: ** Carnival Corp CCL.N, up 26.3% ** Capri Holdings Ltd CPRI.N, up 24.4% ** Kohl's Corp KSS.N, up 24.1% The top three S&P 500 .PL.INX percentage losers: ** Carrier Global Corp CARR.N, down 6.4% ** Robert half International RHI.N, down 4.1% ** Eog Resources EOG.N, down 2.2% The top three NYSE .PG.N percentage gainers: ** Cherry Hill Mortgage Investment CHMI.N, up 42.2% ** Wayfair Inc W.N, up 40.1% ** Dillard DDS.N, up 37.3% The top three NYSE .PL.N percentage losers: ** Vanguard US Multifactor Fund;ETF VFMF.N, down 31.6% ** Global X Founder-Run Companies ETF BOSS.N, down 26.8% ** Direxion Daily Semiconductor Bear 3XSOXS.N, down 23.2% The top Nasdaq .PG.O percentage gainers: ** Immunomedics IMMU.O, up 91.4% ** Akers Bioscience AKER.O, up 79.9% The top Nasdaq .PL.O percentage losers: ** Unico American UNAM.O, down 21% ** Luckin Coffe Inc LK.O, down 15.9% ** Spotify SPOT.N: down 0.6% Spotify: Raymond James downgrades on coronavirus risks, shares fall ** Esperion Therapeutics ESPR.O: up 3.9% Esperion: Up as cholesterol drug gets approval in Europe, co enters license deal ** Axsome Therapeutics AXSM.O: up 2.1% Axsome Therapeutics: Rises after migraine drug meets main goals in late-stage study ** Netflix NFLX.O: up 2.8% Netflix: SunTrust Robinson sees 9.5 mln more subscribers in Q1 ** Cisco Systems CSCO.O: up 4.3% ** Dell Technologies Inc DELL.N: up 6.1% ** Pure Storage PSTG.N: up 11.6% ** Hewlett Packard Enterprises HPE.N: up 7.7% Raymond James cuts PTs of IT service providers ** Myriad Genetics MYGN.O: up 19.2% Myriad Genetics: Rises after cancer test launch in Japan ** Capri Holdings CPRI.N: up 25.7% Capri Holdings: Up after co furloughs N.America store staff, cuts salaries ** Akers Biosciences AKER.O: up 90.0% Akers Biosciences jumps on progress in COVID-19 vaccine development ** HyreCar HYRE.O: up 23.0% HyreCar surges on strong Q1 revenue forecast ** GW Pharma GWPH.O: up 3.9% GW Pharma: Rises after seizure drug removed from controlled substance list ** Livent Corp LTHM.N: up 8.4% Livent Corp jumps on resuming Argentina lithium production ** RH RH.N: up 11.8% RH: Surges after announcing job cuts, cost savings ** Anworth Mortgage Asset Corp ANH.N: up 22.5% Anworth Mortgage rallies as REIT reduces MBS borrowings; may delay dividend ** Hewlett Packard HPE.N: up 7.7% Hewlett Packard withdraws FY20 outlook amid virus outbreak ** Immunomedics IMMU.O: up 92.6% Immunomedics soars on compelling trial data on breast cancer drug ** Vir Biotech VIR.O: up 16.9% Vir Biotech surges on GSK's $250 mln investment, deal for potential COVID-19 drug ** Advanced Micro Devices AMD.O: up 8.1% ** Applied Materials AMAT.O: up 9.4% ** Intel Corp INTC.O: up 5.8% ** Qualcomm Inc QCOM.O: up 7.0% ** Xilinx Inc XLNX.O: up 5.2% ** KLA Corp KLAC.O: up 11.6% Nomura Instinet sees opportunity in semiconductors amid virus outbreak- TheFly.com ** Millendo Therapeutics MLND.O: down 69.5% Millendo Therapeutics dives on scrapping drug trial for genetic illness ** Inovio Pharmaceuticals INO.O: up 8.9% Inovio rises on FDA nod for COVID-19 vaccine clinical trial ** CVS Health Corp CVS.N: up 2.0% CVS Health Corp: Rises on launch of two new drive-through COVID-19 testing sites ** Menlo Therapeutics MNLO.O: down 47.1% Menlo: Falls as skin treatment trials fail to meet goals ** RedHill Biopharma RDHL.O: up 25.8% RedHill Biopharma: Rises after dosing first COVID-19 patient with cancer drug ** Gilead Sciences GILD.O: down 2.1% Gilead Sciences: Rises on plan to ramp up production of COVID-19 trial drug ** Textron Inc TXT.N: up 10.0% Textron's business jet deliveries could fall by 25% in 2020 on virus hit - Jefferies ** Zoom Video ZM.O: down 6.4% Zoom Video: Falls on report of school districts banning Zoom, CS downgrade ** Starbucks SBUX.O: up 4.5% Starbucks: Brokerage raises PT, sees possible boost as Chinese rival faces new challenges ** Co-Diagnostics CODX.O: up 30.1% Co-Diagnostics: Jumps after FDA allows emergency use of co's COVID-19 test ** XBiotech Inc XBIT.O: up 5.7% XBiotech: Jumps on collaboration to develop COVID-19 treatment ** Hilton Worldwide Holdings HLT.N: up 13.1% ** Wynn Resorts WYNN.O: up 14.7% ** Royal Caribbean Cruises RCL.N: up 17.8% ** Marriott International Inc MAR.O: up 17.4% ** Carnival Corp CCL.N: up 22.9% ** Norwegian Cruise Line Holdings NCLH.N: up 15.6% ** Booking Holdings BKNG.O: up 9.6% ** Expedia Group Inc EXPE.O: up 8.4% Travel and leisure stocks climb on hopes of virus slowdown ** Goldman Sachs GS.N: up 6.7% ** JPMorgan JPM.N: up 6.3% ** Citigroup Inc C.N: up 8.7% ** Wells Fargo WFC.N: up 8.0% ** Bank of America BAC.N: up 6.1% ** Morgan Stanley MS.N: up 8.1% U.S. big banks rise amid broad market gains, higher yields ** Hess Corp HES.N: up 4.9% Hess: JPM sees strong Q1 but warns of challenges from extended oil weakness ** Tesla Inc TSLA.O: up 6.4% Tesla Inc: Jefferies upgrades to "buy" on robust Q1 deliveries The 11 major S&P 500 sectors: Communication Services up 8.00% (Compiled by Sanjana Shivdas in Bengaluru) ((SanjanaSitara.Shivdas@thomsonreuters.com; within U.S. +1 646 223 8780, outside U.S. +91 80 6749 1642; Twitter: @SanjanaShivdas;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Eikon search string for individual stock moves: STXBZ The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh The S&P 500 was on track to recoup about $1 trillion in market value in a frantic rally on Monday after New York, the biggest U.S. coronavirus hot spot, reported a fall in daily deaths, raising hopes that the pandemic could level-off soon. The top three S&P 500 .PG.INX percentage gainers: ** Carnival Corp CCL.N, up 26.3% ** Capri Holdings Ltd CPRI.N, up 24.4% ** Kohl's Corp KSS.N, up 24.1% The top three S&P 500 .PL.INX percentage losers: ** Carrier Global Corp CARR.N, down 6.4% ** Robert half International RHI.N, down 4.1% ** Eog Resources EOG.N, down 2.2% The top three NYSE .PG.N percentage gainers: ** Cherry Hill Mortgage Investment CHMI.N, up 42.2% ** Wayfair Inc W.N, up 40.1% ** Dillard DDS.N, up 37.3% The top three NYSE .PL.N percentage losers: ** Vanguard US Multifactor Fund;ETF VFMF.N, down 31.6% ** Global X Founder-Run Companies ETF BOSS.N, down 26.8% ** Direxion Daily Semiconductor Bear 3XSOXS.N, down 23.2% The top Nasdaq .PG.O percentage gainers: ** Immunomedics IMMU.O, up 91.4% ** Akers Bioscience AKER.O, up 79.9% The top Nasdaq .PL.O percentage losers: ** Unico American UNAM.O, down 21% ** Luckin Coffe Inc LK.O, down 15.9% ** Spotify SPOT.N: down 0.6% Spotify: Raymond James downgrades on coronavirus risks, shares fall ** Esperion Therapeutics ESPR.O: up 3.9% Esperion: Up as cholesterol drug gets approval in Europe, co enters license deal ** Axsome Therapeutics AXSM.O: up 2.1% Axsome Therapeutics: Rises after migraine drug meets main goals in late-stage study ** Netflix NFLX.O: up 2.8% Netflix: SunTrust Robinson sees 9.5 mln more subscribers in Q1 ** Cisco Systems CSCO.O: up 4.3% ** Dell Technologies Inc DELL.N: up 6.1% ** Pure Storage PSTG.N: up 11.6% ** Hewlett Packard Enterprises HPE.N: up 7.7% Raymond James cuts PTs of IT service providers ** Myriad Genetics MYGN.O: up 19.2% Myriad Genetics: Rises after cancer test launch in Japan ** Capri Holdings CPRI.N: up 25.7% Capri Holdings: Up after co furloughs N.America store staff, cuts salaries ** Akers Biosciences AKER.O: up 90.0% Akers Biosciences jumps on progress in COVID-19 vaccine development ** HyreCar HYRE.O: up 23.0% HyreCar surges on strong Q1 revenue forecast ** GW Pharma GWPH.O: up 3.9% GW Pharma: Rises after seizure drug removed from controlled substance list ** Livent Corp LTHM.N: up 8.4% Livent Corp jumps on resuming Argentina lithium production ** RH RH.N: up 11.8% RH: Surges after announcing job cuts, cost savings ** Anworth Mortgage Asset Corp ANH.N: up 22.5% Anworth Mortgage rallies as REIT reduces MBS borrowings; may delay dividend ** Hewlett Packard HPE.N: up 7.7% Hewlett Packard withdraws FY20 outlook amid virus outbreak ** Immunomedics IMMU.O: up 92.6% Immunomedics soars on compelling trial data on breast cancer drug ** Vir Biotech VIR.O: up 16.9% Vir Biotech surges on GSK's $250 mln investment, deal for potential COVID-19 drug ** Advanced Micro Devices AMD.O: up 8.1% ** Applied Materials AMAT.O: up 9.4% ** Intel Corp INTC.O: up 5.8% ** Qualcomm Inc QCOM.O: up 7.0% ** Xilinx Inc XLNX.O: up 5.2% ** KLA Corp KLAC.O: up 11.6% Nomura Instinet sees opportunity in semiconductors amid virus outbreak- TheFly.com ** Millendo Therapeutics MLND.O: down 69.5% Millendo Therapeutics dives on scrapping drug trial for genetic illness ** Inovio Pharmaceuticals INO.O: up 8.9% Inovio rises on FDA nod for COVID-19 vaccine clinical trial ** CVS Health Corp CVS.N: up 2.0% CVS Health Corp: Rises on launch of two new drive-through COVID-19 testing sites ** Menlo Therapeutics MNLO.O: down 47.1% Menlo: Falls as skin treatment trials fail to meet goals ** RedHill Biopharma RDHL.O: up 25.8% RedHill Biopharma: Rises after dosing first COVID-19 patient with cancer drug ** Gilead Sciences GILD.O: down 2.1% Gilead Sciences: Rises on plan to ramp up production of COVID-19 trial drug ** Textron Inc TXT.N: up 10.0% Textron's business jet deliveries could fall by 25% in 2020 on virus hit - Jefferies ** Zoom Video ZM.O: down 6.4% Zoom Video: Falls on report of school districts banning Zoom, CS downgrade ** Starbucks SBUX.O: up 4.5% Starbucks: Brokerage raises PT, sees possible boost as Chinese rival faces new challenges ** Co-Diagnostics CODX.O: up 30.1% Co-Diagnostics: Jumps after FDA allows emergency use of co's COVID-19 test ** XBiotech Inc XBIT.O: up 5.7% XBiotech: Jumps on collaboration to develop COVID-19 treatment ** Hilton Worldwide Holdings HLT.N: up 13.1% ** Wynn Resorts WYNN.O: up 14.7% ** Royal Caribbean Cruises RCL.N: up 17.8% ** Marriott International Inc MAR.O: up 17.4% ** Carnival Corp CCL.N: up 22.9% ** Norwegian Cruise Line Holdings NCLH.N: up 15.6% ** Booking Holdings BKNG.O: up 9.6% ** Expedia Group Inc EXPE.O: up 8.4% Travel and leisure stocks climb on hopes of virus slowdown ** Goldman Sachs GS.N: up 6.7% ** JPMorgan JPM.N: up 6.3% ** Citigroup Inc C.N: up 8.7% ** Wells Fargo WFC.N: up 8.0% ** Bank of America BAC.N: up 6.1% ** Morgan Stanley MS.N: up 8.1% U.S. big banks rise amid broad market gains, higher yields ** Hess Corp HES.N: up 4.9% Hess: JPM sees strong Q1 but warns of challenges from extended oil weakness ** Tesla Inc TSLA.O: up 6.4% Tesla Inc: Jefferies upgrades to "buy" on robust Q1 deliveries The 11 major S&P 500 sectors: Communication Services up 8.00% (Compiled by Sanjana Shivdas in Bengaluru) ((SanjanaSitara.Shivdas@thomsonreuters.com; within U.S. +1 646 223 8780, outside U.S. +91 80 6749 1642; Twitter: @SanjanaShivdas;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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.N At 12:33 ET, the Dow Jones Industrial Average .DJI was up 5.53% at 22,216.62. The top three S&P 500 .PG.INX percentage gainers: ** Carnival Corp CCL.N, up 26.3% ** Capri Holdings Ltd CPRI.N, up 24.4% ** Kohl's Corp KSS.N, up 24.1% The top three S&P 500 .PL.INX percentage losers: ** Carrier Global Corp CARR.N, down 6.4% ** Robert half International RHI.N, down 4.1% ** Eog Resources EOG.N, down 2.2% The top three NYSE .PG.N percentage gainers: ** Cherry Hill Mortgage Investment CHMI.N, up 42.2% ** Wayfair Inc W.N, up 40.1% ** Dillard DDS.N, up 37.3% The top three NYSE .PL.N percentage losers: ** Vanguard US Multifactor Fund;ETF VFMF.N, down 31.6% ** Global X Founder-Run Companies ETF BOSS.N, down 26.8% ** Direxion Daily Semiconductor Bear 3XSOXS.N, down 23.2% The top Nasdaq .PG.O percentage gainers: ** Immunomedics IMMU.O, up 91.4% ** Akers Bioscience AKER.O, up 79.9% The top Nasdaq .PL.O percentage losers: ** Unico American UNAM.O, down 21% ** Luckin Coffe Inc LK.O, down 15.9% ** Spotify SPOT.N: down 0.6% Spotify: Raymond James downgrades on coronavirus risks, shares fall ** Esperion Therapeutics ESPR.O: up 3.9% Esperion: Up as cholesterol drug gets approval in Europe, co enters license deal ** Axsome Therapeutics AXSM.O: up 2.1% Axsome Therapeutics: Rises after migraine drug meets main goals in late-stage study ** Netflix NFLX.O: up 2.8% Netflix: SunTrust Robinson sees 9.5 mln more subscribers in Q1 ** Cisco Systems CSCO.O: up 4.3% ** Dell Technologies Inc DELL.N: up 6.1% ** Pure Storage PSTG.N: up 11.6% ** Hewlett Packard Enterprises HPE.N: up 7.7% Raymond James cuts PTs of IT service providers ** Myriad Genetics MYGN.O: up 19.2% Myriad Genetics: Rises after cancer test launch in Japan ** Capri Holdings CPRI.N: up 25.7% Capri Holdings: Up after co furloughs N.America store staff, cuts salaries ** Akers Biosciences AKER.O: up 90.0% Akers Biosciences jumps on progress in COVID-19 vaccine development ** HyreCar HYRE.O: up 23.0% HyreCar surges on strong Q1 revenue forecast ** GW Pharma GWPH.O: up 3.9% GW Pharma: Rises after seizure drug removed from controlled substance list ** Livent Corp LTHM.N: up 8.4% Livent Corp jumps on resuming Argentina lithium production ** RH RH.N: up 11.8% RH: Surges after announcing job cuts, cost savings ** Anworth Mortgage Asset Corp ANH.N: up 22.5% Anworth Mortgage rallies as REIT reduces MBS borrowings; may delay dividend ** Hewlett Packard HPE.N: up 7.7% Hewlett Packard withdraws FY20 outlook amid virus outbreak ** Immunomedics IMMU.O: up 92.6% Immunomedics soars on compelling trial data on breast cancer drug ** Vir Biotech VIR.O: up 16.9% Vir Biotech surges on GSK's $250 mln investment, deal for potential COVID-19 drug ** Advanced Micro Devices AMD.O: up 8.1% ** Applied Materials AMAT.O: up 9.4% ** Intel Corp INTC.O: up 5.8% ** Qualcomm Inc QCOM.O: up 7.0% ** Xilinx Inc XLNX.O: up 5.2% ** KLA Corp KLAC.O: up 11.6% Nomura Instinet sees opportunity in semiconductors amid virus outbreak- TheFly.com ** Millendo Therapeutics MLND.O: down 69.5% Millendo Therapeutics dives on scrapping drug trial for genetic illness ** Inovio Pharmaceuticals INO.O: up 8.9% Inovio rises on FDA nod for COVID-19 vaccine clinical trial ** CVS Health Corp CVS.N: up 2.0% CVS Health Corp: Rises on launch of two new drive-through COVID-19 testing sites ** Menlo Therapeutics MNLO.O: down 47.1% Menlo: Falls as skin treatment trials fail to meet goals ** RedHill Biopharma RDHL.O: up 25.8% RedHill Biopharma: Rises after dosing first COVID-19 patient with cancer drug ** Gilead Sciences GILD.O: down 2.1% Gilead Sciences: Rises on plan to ramp up production of COVID-19 trial drug ** Textron Inc TXT.N: up 10.0% Textron's business jet deliveries could fall by 25% in 2020 on virus hit - Jefferies ** Zoom Video ZM.O: down 6.4% Zoom Video: Falls on report of school districts banning Zoom, CS downgrade ** Starbucks SBUX.O: up 4.5% Starbucks: Brokerage raises PT, sees possible boost as Chinese rival faces new challenges ** Co-Diagnostics CODX.O: up 30.1% Co-Diagnostics: Jumps after FDA allows emergency use of co's COVID-19 test ** XBiotech Inc XBIT.O: up 5.7% XBiotech: Jumps on collaboration to develop COVID-19 treatment ** Hilton Worldwide Holdings HLT.N: up 13.1% ** Wynn Resorts WYNN.O: up 14.7% ** Royal Caribbean Cruises RCL.N: up 17.8% ** Marriott International Inc MAR.O: up 17.4% ** Carnival Corp CCL.N: up 22.9% ** Norwegian Cruise Line Holdings NCLH.N: up 15.6% ** Booking Holdings BKNG.O: up 9.6% ** Expedia Group Inc EXPE.O: up 8.4% Travel and leisure stocks climb on hopes of virus slowdown ** Goldman Sachs GS.N: up 6.7% ** JPMorgan JPM.N: up 6.3% ** Citigroup Inc C.N: up 8.7% ** Wells Fargo WFC.N: up 8.0% ** Bank of America BAC.N: up 6.1% ** Morgan Stanley MS.N: up 8.1% U.S. big banks rise amid broad market gains, higher yields ** Hess Corp HES.N: up 4.9% Hess: JPM sees strong Q1 but warns of challenges from extended oil weakness ** Tesla Inc TSLA.O: up 6.4% Tesla Inc: Jefferies upgrades to "buy" on robust Q1 deliveries The 11 major S&P 500 sectors: Communication Services up 5.04% Consumer Discretionary
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Eikon search string for individual stock moves: STXBZ The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh The S&P 500 was on track to recoup about $1 trillion in market value in a frantic rally on Monday after New York, the biggest U.S. coronavirus hot spot, reported a fall in daily deaths, raising hopes that the pandemic could level-off soon. .N At 12:33 ET, the Dow Jones Industrial Average .DJI was up 5.53% at 22,216.62. The S&P 500 .SPX was up 5.50% at 2,625.53 and the Nasdaq Composite .IXIC was up 5.42% at 7,772.803.
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6094.0
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2020-04-06 00:00:00 UTC
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Warren Buffett Sells Airline Stocks in An Abrupt Reversal: What Does It Say About the Coronavirus Bear Market?
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AAL
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https://www.nasdaq.com/articles/warren-buffett-sells-airline-stocks-in-an-abrupt-reversal%3A-what-does-it-say-about-the
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Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) has gone from buyer to seller on airline stocks, selling nearly 13 million shares of Delta Air Lines (NYSE: DAL) and 2.3 million shares of Southwest Airlines (NYSE: LUV) in recent days.
Airline stocks have been among the hardest hit by the COVID-19 coronavirus pandemic-related sell-off, with shares of Delta and Southwest down 52% and 36%, respectively, in the last month alone. But the sale by Warren Buffett's Berkshire is still surprising, considering the company was buying Delta shares just one month ago.
Berkshire Hathaway had to disclose the sales because it owned more than 10% of each airline. We won't know until May whether Berkshire was also selling its stake in two other airlines, United Airlines Holdings (NASDAQ: UAL) or American Airlines Group (NASDAQ: AAL), or whether Buffett and his co-advisors intend to continue to pare their Delta and Southwest stakes in the days and weeks to come.
Image source: The Motley Fool.
It’s worth stating, we don't know for sure it was Buffett who pulled the trigger: He has said that he oversees three of Berkshire Hathaway's airline positions, while portfolio managers Todd Combs and Ted Weschler are responsible for the fourth.
Truth is there is a lot we don't know about the sales, other than to say the moves are not bullish for the airlines. And they could signal how the Oracle of Omaha is thinking about the overall market as well.
Airlines and the economy are in turmoil
The airlines are high-fixed cost businesses that have seen revenue evaporate overnight. Delta on Friday said it is currently burning through more than $400 million of its cash reserve each week and expects second quarter revenue to fall 90% year over year. Southwest, meanwhile, reportedly flew more than 50 empty planes on a single day last week.
The airlines are turning to the government for help, with both Delta and Southwest -- along with most of their peers -- expected to apply for some of the $50 billion in grants and loans available to the industry as part of the $2 trillion economic stimulus package passed late last month. But that money only buys more time: No airline can burn through $1.6 billion in cash per month and sustain operations indefinitely.
Image source: Southwest Airlines.
The hope is that as the pandemic is eventually contained passenger traffic will come back, but that's no sure bet if the economy falls into a recession. With each passing week, and with jobless claims reaching record highs, a recession seems more and more certain. And the airline industry's future gets less and less clear.
Berkshire Hathaway's sale if nothing else could be interpreted as a sign that the brain trust in Omaha are worried we are headed into a severe downturn. If you believe there is a real chance of a quick rebound these airlines are significantly undervalued -- Delta for example is trading at 3 times trailing earnings and 0.3 times sales -- and now is the worst possible time to sell. It seems clear that Berkshire is assuming that won't be the case.
What was Warren thinking?
Airline are in trouble. Still, selling after a sharp decline seems out of character for an investor who famously said, "be greedy when others are fearful." Buffett is only a recent convert to the airlines after years of criticizing the industry, and it could be that this experience is giving him second thoughts about believing things have changed.
Still, the sales we know about hardly indicate he is raising the white flag. Berkshire Hathaway even after the sales still own more than 9% of both Delta and Southwest, and still might own shares of American and United as well.
Image source: Delta Air LInes.
It is possible this could all be housekeeping: Buffett typically doesn't like Berkshire's equity stakes to go above 10% of a company but said in 2017 that he made an exception on Delta. These sales could simply indicate that he no longer feels airlines deserve an exception to his rule. Or Buffett could be looking for ways to add a little ammunition ahead of firing fire his so-called "elephant gun," although the airline share sales added just $350 million to Berkshire Hathaway's $120 billion cash stockpile.
At the risk of trying to read Warren Buffett's mind, I don't think these sales signal his exit from the airlines. The stocks are sure to fall further on this news (and indeed shares of both Southwest and Delta plunged in after hour trading Friday night). If Berkshire was planning to sell significantly more shares in the near future, it makes no sense to wait until after this filing to do so.
Caution is the key
Investing in an airline today feels like a binary option: If the companies survive, the stocks as noted above are almost certainly undervalued. But there is a risk the economy doesn't recover in time and all the stocks are going to zero.
Delta and Southwest, the two airlines we know Berkshire was selling, are the best run and have two of the strongest balance sheets in the industry. Bailing on those two in particular doesn't speak well for Berkshire Hathaway's overall view of the industry or the economy.
But it is worth noting that, as far as we know, Berkshire Hathaway still holds airline stocks as a small part of a well-diversified portfolio. And despite the uncertainty, I still believe the odds are good that these airlines will find a way to stay solvent until traffic returns. I can't blame Berkshire or any other investor for keeping only a small stake in the industry, but I'm holding onto my Delta shares and would recommend that stock for anyone who is intrigued by the airlines.
Warren Buffett's initial turnaround from airline avoider to investor was hailed as a fresh start for the industry, and this latest U-turn is certainly a setback. But this journey isn't over yet.
10 stocks we like better than Berkshire Hathaway (A shares)
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Lou Whiteman owns shares of Berkshire Hathaway (B shares) and Delta Air Lines. The Motley Fool owns shares of and recommends Berkshire Hathaway (B shares), 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.
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We won't know until May whether Berkshire was also selling its stake in two other airlines, United Airlines Holdings (NASDAQ: UAL) or American Airlines Group (NASDAQ: AAL), or whether Buffett and his co-advisors intend to continue to pare their Delta and Southwest stakes in the days and weeks to come. It’s worth stating, we don't know for sure it was Buffett who pulled the trigger: He has said that he oversees three of Berkshire Hathaway's airline positions, while portfolio managers Todd Combs and Ted Weschler are responsible for the fourth. The airlines are turning to the government for help, with both Delta and Southwest -- along with most of their peers -- expected to apply for some of the $50 billion in grants and loans available to the industry as part of the $2 trillion economic stimulus package passed late last month.
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We won't know until May whether Berkshire was also selling its stake in two other airlines, United Airlines Holdings (NASDAQ: UAL) or American Airlines Group (NASDAQ: AAL), or whether Buffett and his co-advisors intend to continue to pare their Delta and Southwest stakes in the days and weeks to come. Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) has gone from buyer to seller on airline stocks, selling nearly 13 million shares of Delta Air Lines (NYSE: DAL) and 2.3 million shares of Southwest Airlines (NYSE: LUV) in recent days. The Motley Fool owns shares of and recommends Berkshire Hathaway (B shares), 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).
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We won't know until May whether Berkshire was also selling its stake in two other airlines, United Airlines Holdings (NASDAQ: UAL) or American Airlines Group (NASDAQ: AAL), or whether Buffett and his co-advisors intend to continue to pare their Delta and Southwest stakes in the days and weeks to come. Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) has gone from buyer to seller on airline stocks, selling nearly 13 million shares of Delta Air Lines (NYSE: DAL) and 2.3 million shares of Southwest Airlines (NYSE: LUV) in recent days. The Motley Fool owns shares of and recommends Berkshire Hathaway (B shares), 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).
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We won't know until May whether Berkshire was also selling its stake in two other airlines, United Airlines Holdings (NASDAQ: UAL) or American Airlines Group (NASDAQ: AAL), or whether Buffett and his co-advisors intend to continue to pare their Delta and Southwest stakes in the days and weeks to come. Berkshire Hathaway even after the sales still own more than 9% of both Delta and Southwest, and still might own shares of American and United as well. But there is a risk the economy doesn't recover in time and all the stocks are going to zero.
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6095.0
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2020-04-06 00:00:00 UTC
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BUZZ-U.S. STOCKS ON THE MOVE-Kohl's, Carnival Corp, Akers Bioscience, Immunomedics
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AAL
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https://www.nasdaq.com/articles/buzz-u.s.-stocks-on-the-move-kohls-carnival-corp-akers-bioscience-immunomedics-2020-04-06
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Eikon search string for individual stock moves: STXBZ
The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi
The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh
The S&P 500 was on track to recoup about $1 trillion in market value on Monday in a frantic rally after New York, the biggest U.S. coronavirus hot spot, reported a fall in daily deaths, raising hopes that the pandemic could level-off soon. .N
At 11:22 ET, the Dow Jones Industrial Average .DJI was up 4.75% at 22,051.6. The S&P 500 .SPX was up 4.62% at 2,603.75 and the Nasdaq Composite .IXIC was up 4.68% at 7,717.899. The top three S&P 500 .PG.INX percentage gainers: ** Capri Holdings Ltd CPRI.N, up 17.7 % ** Carnival Corp CCL.N, up 16.6 % ** Kohl's Corp KSS.N, up 16.8 % The top three S&P 500 .PL.INX percentage losers: ** Robert Half International Inc RHI.N, down 5.7 % ** Carrier Global Corp CARR.N, down 5.5 % ** Diamondback Energy FANG.O, down 4.3 % The top three NYSE .PG.N percentage gainers: ** Velocity Financial VEL.N, up 36.8 % ** Cherry Hill Mortgage Investment CHMI.N, up 34.3 % ** Wayfair Inc W.N, up 32.8 % The top NYSE .PL.N percentage losers: ** BP Prudhoe Bay BPT.N, down 18.5 % The top three Nasdaq .PG.O percentage gainers: ** Immunomedics IMMU.O, up 99.8 % ** Akers Bioscience AKER.O, up 64.4 % ** Immunovant Inc IMVTW.O, up 39.6 % The top Nasdaq .PL.O percentage losers: ** Luckin Coffe Inc LK.O, down 14.8 % ** Immunvant Inc IMVTU.O, down 13.2 % ** Akers Biosciences AKER.O: up 50.4%
Akers Biosciences jumps on progress in COVID-19 vaccine development ** HyreCar HYRE.O: up 17.0%
HyreCar surges on strong Q1 revenue forecast ** GW Pharma GWPH.O: up 3.9%
GW Pharma: Rises after seizure drug removed from controlled substance list ** Livent Corp LTHM.N: up 9.5%
Livent Corp jumps on resuming Argentina lithium production ** RH RH.N: up 9.6%
RH: Surges after announcing job cuts, cost savings ** Anworth Mortgage Asset Corp ANH.N: up 24.9%
Anworth Mortgage rallies as REIT reduces MBS borrowings; may delay dividend ** Hewlett Packard HPE.N: up 6.3%
Hewlett Packard withdraws FY20 outlook amid virus outbreak ** Immunomedics IMMU.O: up 99.8%
Immunomedics soars on compelling trial data on breast cancer drug ** Vir Biotech VIR.O: up 16.0%
Vir Biotech surges on GSK's $250 mln investment, deal for potential COVID-19 drug ** Advanced Micro Devices AMD.O: up 7.9% ** Applied Materials AMAT.O: up 8.4% ** Intel Corp INTC.O: up 5.2% ** Qualcomm Inc QCOM.O: !RIC {RIC.NB} is invalid ** Xilinx Inc XLNX.O: up 5.2% ** KLA Corp KLAC.O: up 10.5%
Nomura Instinet sees opportunity in semiconductors amid virus outbreak- TheFly.com ** Millendo Therapeutics MLND.O: down 67.0%
Millendo Therapeutics dives on scrapping drug trial for genetic illness ** Inovio Pharmaceuticals INO.O: up 7.0%
Inovio rises on FDA nod for COVID-19 vaccine clinical trial ** CVS Health Corp CVS.N: up 1.7% CVS Health Corp: Rises on launch of two new drive-through COVID-19 testing sites ** Menlo Therapeutics MNLO.O: down 47.9% Menlo: Falls as skin treatment trials fail to meet goals ** RedHill Biopharma RDHL.O: up 20.8% RedHill Biopharma: Rises after dosing first COVID-19 patient with cancer drug ** Gilead Sciences GILD.O: down 1.6% Gilead Sciences: Rises on plan to ramp up production of COVID-19 trial drug ** Textron Inc TXT.N: up 7.5% Textron's business jet deliveries could fall by 25% in 2020 on virus hit - Jefferies ** Zoom Video ZM.O: down 7.0% Zoom Video: Falls on report of school districts banning Zoom, CS downgrade ** Starbucks SBUX.O: up 2.6% Starbucks: Brokerage raises PT, sees possible boost as Chinese rival faces new challenges ** Co-Diagnostics CODX.O: up 22.0% Co-Diagnostics: Jumps after FDA allows emergency use of co's COVID-19 test ** XBiotech Inc XBIT.O: up 4.7% XBiotech: Jumps on collaboration to develop COVID-19 treatment ** Hilton Worldwide Holdings HLT.N: up 10.3% ** Wynn Resorts WYNN.O: up 12.3% ** Royal Caribbean Cruises RCL.N: up 11.2% ** Marriott International Inc MAR.O: up 13.4% ** Carnival Corp CCL.N: up 15.7% ** Norwegian Cruise Line Holdings NCLH.N: up 9.6% ** Booking Holdings BKNG.O: up 7.7% ** Expedia Group Inc EXPE.O: up 7.3% Travel and leisure stocks climb on hopes of virus slowdown ** Goldman Sachs GS.N: up 5.6% ** JPMorgan JPM.N: up 5.1% ** Citigroup Inc C.N: up 6.4% ** Wells Fargo WFC.N: up 5.9% ** Bank of America BAC.N: up 5.1% ** Morgan Stanley MS.N: up 6.8% U.S. big banks rise amid broad market gains, higher yields ** Hess Corp HES.N: up 0.7% Hess: JPM sees strong Q1 but warns of challenges from extended oil weakness ** Tesla Inc TSLA.O: up 5.9% Tesla Inc: Jefferies upgrades to "buy" on robust Q1 deliveries
The 11 major S&P 500 sectors:
The 11 major S&P 500 sectors:
Communication Services
.SPLRCL
up 4.34%
Consumer Discretionary
.SPLRCD
up 5.29%
Consumer Staples
.SPLRCS
up 2.68%
Energy
.SPNY
up 3.30%
Financial
.SPSY
up 5.04%
Health
.SPXHC
up 3.32%
Industrial
.SPLRCI
up 5.41%
Information Technology
.SPLRCT
up 5.65%
Materials
.SPLRCM
up 6.77%
Real Estate
.SPLRCR
up 5.98%
Utilities
.SPLRCU
up 7.30%
(Reporting by Sanjana Shivdas in Bengaluru)
((SanjanaSitara.Shivdas@thomsonreuters.com; within U.S. +1 646 223 8780, outside U.S. +91 80 6749 1642; Twitter: @SanjanaShivdas;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Eikon search string for individual stock moves: STXBZ The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh The S&P 500 was on track to recoup about $1 trillion in market value on Monday in a frantic rally after New York, the biggest U.S. coronavirus hot spot, reported a fall in daily deaths, raising hopes that the pandemic could level-off soon. The top three S&P 500 .PG.INX percentage gainers: ** Capri Holdings Ltd CPRI.N, up 17.7 % ** Carnival Corp CCL.N, up 16.6 % ** Kohl's Corp KSS.N, up 16.8 % The top three S&P 500 .PL.INX percentage losers: ** Robert Half International Inc RHI.N, down 5.7 % ** Carrier Global Corp CARR.N, down 5.5 % ** Diamondback Energy FANG.O, down 4.3 % The top three NYSE .PG.N percentage gainers: ** Velocity Financial VEL.N, up 36.8 % ** Cherry Hill Mortgage Investment CHMI.N, up 34.3 % ** Wayfair Inc W.N, up 32.8 % The top NYSE .PL.N percentage losers: ** BP Prudhoe Bay BPT.N, down 18.5 % The top three Nasdaq .PG.O percentage gainers: ** Immunomedics IMMU.O, up 99.8 % ** Akers Bioscience AKER.O, up 64.4 % ** Immunovant Inc IMVTW.O, up 39.6 % The top Nasdaq .PL.O percentage losers: ** Luckin Coffe Inc LK.O, down 14.8 % ** Immunvant Inc IMVTU.O, down 13.2 % ** Akers Biosciences AKER.O: up 50.4% Akers Biosciences jumps on progress in COVID-19 vaccine development ** HyreCar HYRE.O: up 17.0% HyreCar surges on strong Q1 revenue forecast ** GW Pharma GWPH.O: up 3.9% GW Pharma: Rises after seizure drug removed from controlled substance list ** Livent Corp LTHM.N: up 9.5% Livent Corp jumps on resuming Argentina lithium production ** RH RH.N: up 9.6% RH: Surges after announcing job cuts, cost savings ** Anworth Mortgage Asset Corp ANH.N: up 24.9% Anworth Mortgage rallies as REIT reduces MBS borrowings; may delay dividend ** Hewlett Packard HPE.N: up 6.3% Hewlett Packard withdraws FY20 outlook amid virus outbreak ** Immunomedics IMMU.O: up 99.8% Immunomedics soars on compelling trial data on breast cancer drug ** Vir Biotech VIR.O: up 16.0% Vir Biotech surges on GSK's $250 mln investment, deal for potential COVID-19 drug ** Advanced Micro Devices AMD.O: up 7.9% ** Applied Materials AMAT.O: up 8.4% ** Intel Corp INTC.O: up 5.2% ** Qualcomm Inc QCOM.O: !RIC {RIC.NB} is invalid ** Xilinx Inc XLNX.O: up 5.2% ** KLA Corp KLAC.O: up 10.5% Nomura Instinet sees opportunity in semiconductors amid virus outbreak- TheFly.com ** Millendo Therapeutics MLND.O: down 67.0% Millendo Therapeutics dives on scrapping drug trial for genetic illness ** Inovio Pharmaceuticals INO.O: up 7.0% Inovio rises on FDA nod for COVID-19 vaccine clinical trial ** CVS Health Corp CVS.N: up 1.7% CVS Health Corp: Rises on launch of two new drive-through COVID-19 testing sites ** Menlo Therapeutics MNLO.O: down 47.9% Menlo: Falls as skin treatment trials fail to meet goals ** RedHill Biopharma RDHL.O: up 20.8% RedHill Biopharma: Rises after dosing first COVID-19 patient with cancer drug ** Gilead Sciences GILD.O: down 1.6% Gilead Sciences: Rises on plan to ramp up production of COVID-19 trial drug ** Textron Inc TXT.N: up 7.5% Textron's business jet deliveries could fall by 25% in 2020 on virus hit - Jefferies ** Zoom Video ZM.O: down 7.0% Zoom Video: Falls on report of school districts banning Zoom, CS downgrade ** Starbucks SBUX.O: up 2.6% Starbucks: Brokerage raises PT, sees possible boost as Chinese rival faces new challenges ** Co-Diagnostics CODX.O: up 22.0% Co-Diagnostics: Jumps after FDA allows emergency use of co's COVID-19 test ** XBiotech Inc XBIT.O: up 4.7% XBiotech: Jumps on collaboration to develop COVID-19 treatment ** Hilton Worldwide Holdings HLT.N: up 10.3% ** Wynn Resorts WYNN.O: up 12.3% ** Royal Caribbean Cruises RCL.N: up 11.2% ** Marriott International Inc MAR.O: up 13.4% ** Carnival Corp CCL.N: up 15.7% ** Norwegian Cruise Line Holdings NCLH.N: up 9.6% ** Booking Holdings BKNG.O: up 7.7% ** Expedia Group Inc EXPE.O: up 7.3% Travel and leisure stocks climb on hopes of virus slowdown ** Goldman Sachs GS.N: up 5.6% ** JPMorgan JPM.N: up 5.1% ** Citigroup Inc C.N: up 6.4% ** Wells Fargo WFC.N: up 5.9% ** Bank of America BAC.N: up 5.1% ** Morgan Stanley MS.N: up 6.8% U.S. big banks rise amid broad market gains, higher yields ** Hess Corp HES.N: up 0.7% Hess: JPM sees strong Q1 but warns of challenges from extended oil weakness ** Tesla Inc TSLA.O: up 5.9% Tesla Inc: Jefferies upgrades to "buy" on robust Q1 deliveries The 11 major S&P 500 sectors: The 11 major S&P 500 sectors: Communication Services up 7.30% (Reporting by Sanjana Shivdas in Bengaluru) ((SanjanaSitara.Shivdas@thomsonreuters.com; within U.S. +1 646 223 8780, outside U.S. +91 80 6749 1642; Twitter: @SanjanaShivdas;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Eikon search string for individual stock moves: STXBZ The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh The S&P 500 was on track to recoup about $1 trillion in market value on Monday in a frantic rally after New York, the biggest U.S. coronavirus hot spot, reported a fall in daily deaths, raising hopes that the pandemic could level-off soon. The top three S&P 500 .PG.INX percentage gainers: ** Capri Holdings Ltd CPRI.N, up 17.7 % ** Carnival Corp CCL.N, up 16.6 % ** Kohl's Corp KSS.N, up 16.8 % The top three S&P 500 .PL.INX percentage losers: ** Robert Half International Inc RHI.N, down 5.7 % ** Carrier Global Corp CARR.N, down 5.5 % ** Diamondback Energy FANG.O, down 4.3 % The top three NYSE .PG.N percentage gainers: ** Velocity Financial VEL.N, up 36.8 % ** Cherry Hill Mortgage Investment CHMI.N, up 34.3 % ** Wayfair Inc W.N, up 32.8 % The top NYSE .PL.N percentage losers: ** BP Prudhoe Bay BPT.N, down 18.5 % The top three Nasdaq .PG.O percentage gainers: ** Immunomedics IMMU.O, up 99.8 % ** Akers Bioscience AKER.O, up 64.4 % ** Immunovant Inc IMVTW.O, up 39.6 % The top Nasdaq .PL.O percentage losers: ** Luckin Coffe Inc LK.O, down 14.8 % ** Immunvant Inc IMVTU.O, down 13.2 % ** Akers Biosciences AKER.O: up 50.4% Akers Biosciences jumps on progress in COVID-19 vaccine development ** HyreCar HYRE.O: up 17.0% HyreCar surges on strong Q1 revenue forecast ** GW Pharma GWPH.O: up 3.9% GW Pharma: Rises after seizure drug removed from controlled substance list ** Livent Corp LTHM.N: up 9.5% Livent Corp jumps on resuming Argentina lithium production ** RH RH.N: up 9.6% RH: Surges after announcing job cuts, cost savings ** Anworth Mortgage Asset Corp ANH.N: up 24.9% Anworth Mortgage rallies as REIT reduces MBS borrowings; may delay dividend ** Hewlett Packard HPE.N: up 6.3% Hewlett Packard withdraws FY20 outlook amid virus outbreak ** Immunomedics IMMU.O: up 99.8% Immunomedics soars on compelling trial data on breast cancer drug ** Vir Biotech VIR.O: up 16.0% Vir Biotech surges on GSK's $250 mln investment, deal for potential COVID-19 drug ** Advanced Micro Devices AMD.O: up 7.9% ** Applied Materials AMAT.O: up 8.4% ** Intel Corp INTC.O: up 5.2% ** Qualcomm Inc QCOM.O: !RIC {RIC.NB} is invalid ** Xilinx Inc XLNX.O: up 5.2% ** KLA Corp KLAC.O: up 10.5% Nomura Instinet sees opportunity in semiconductors amid virus outbreak- TheFly.com ** Millendo Therapeutics MLND.O: down 67.0% Millendo Therapeutics dives on scrapping drug trial for genetic illness ** Inovio Pharmaceuticals INO.O: up 7.0% Inovio rises on FDA nod for COVID-19 vaccine clinical trial ** CVS Health Corp CVS.N: up 1.7% CVS Health Corp: Rises on launch of two new drive-through COVID-19 testing sites ** Menlo Therapeutics MNLO.O: down 47.9% Menlo: Falls as skin treatment trials fail to meet goals ** RedHill Biopharma RDHL.O: up 20.8% RedHill Biopharma: Rises after dosing first COVID-19 patient with cancer drug ** Gilead Sciences GILD.O: down 1.6% Gilead Sciences: Rises on plan to ramp up production of COVID-19 trial drug ** Textron Inc TXT.N: up 7.5% Textron's business jet deliveries could fall by 25% in 2020 on virus hit - Jefferies ** Zoom Video ZM.O: down 7.0% Zoom Video: Falls on report of school districts banning Zoom, CS downgrade ** Starbucks SBUX.O: up 2.6% Starbucks: Brokerage raises PT, sees possible boost as Chinese rival faces new challenges ** Co-Diagnostics CODX.O: up 22.0% Co-Diagnostics: Jumps after FDA allows emergency use of co's COVID-19 test ** XBiotech Inc XBIT.O: up 4.7% XBiotech: Jumps on collaboration to develop COVID-19 treatment ** Hilton Worldwide Holdings HLT.N: up 10.3% ** Wynn Resorts WYNN.O: up 12.3% ** Royal Caribbean Cruises RCL.N: up 11.2% ** Marriott International Inc MAR.O: up 13.4% ** Carnival Corp CCL.N: up 15.7% ** Norwegian Cruise Line Holdings NCLH.N: up 9.6% ** Booking Holdings BKNG.O: up 7.7% ** Expedia Group Inc EXPE.O: up 7.3% Travel and leisure stocks climb on hopes of virus slowdown ** Goldman Sachs GS.N: up 5.6% ** JPMorgan JPM.N: up 5.1% ** Citigroup Inc C.N: up 6.4% ** Wells Fargo WFC.N: up 5.9% ** Bank of America BAC.N: up 5.1% ** Morgan Stanley MS.N: up 6.8% U.S. big banks rise amid broad market gains, higher yields ** Hess Corp HES.N: up 0.7% Hess: JPM sees strong Q1 but warns of challenges from extended oil weakness ** Tesla Inc TSLA.O: up 5.9% Tesla Inc: Jefferies upgrades to "buy" on robust Q1 deliveries The 11 major S&P 500 sectors: The 11 major S&P 500 sectors: Communication Services up 7.30% (Reporting by Sanjana Shivdas in Bengaluru) ((SanjanaSitara.Shivdas@thomsonreuters.com; within U.S. +1 646 223 8780, outside U.S. +91 80 6749 1642; Twitter: @SanjanaShivdas;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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.N At 11:22 ET, the Dow Jones Industrial Average .DJI was up 4.75% at 22,051.6. The top three S&P 500 .PG.INX percentage gainers: ** Capri Holdings Ltd CPRI.N, up 17.7 % ** Carnival Corp CCL.N, up 16.6 % ** Kohl's Corp KSS.N, up 16.8 % The top three S&P 500 .PL.INX percentage losers: ** Robert Half International Inc RHI.N, down 5.7 % ** Carrier Global Corp CARR.N, down 5.5 % ** Diamondback Energy FANG.O, down 4.3 % The top three NYSE .PG.N percentage gainers: ** Velocity Financial VEL.N, up 36.8 % ** Cherry Hill Mortgage Investment CHMI.N, up 34.3 % ** Wayfair Inc W.N, up 32.8 % The top NYSE .PL.N percentage losers: ** BP Prudhoe Bay BPT.N, down 18.5 % The top three Nasdaq .PG.O percentage gainers: ** Immunomedics IMMU.O, up 99.8 % ** Akers Bioscience AKER.O, up 64.4 % ** Immunovant Inc IMVTW.O, up 39.6 % The top Nasdaq .PL.O percentage losers: ** Luckin Coffe Inc LK.O, down 14.8 % ** Immunvant Inc IMVTU.O, down 13.2 % ** Akers Biosciences AKER.O: up 50.4% Akers Biosciences jumps on progress in COVID-19 vaccine development ** HyreCar HYRE.O: up 17.0% HyreCar surges on strong Q1 revenue forecast ** GW Pharma GWPH.O: up 3.9% GW Pharma: Rises after seizure drug removed from controlled substance list ** Livent Corp LTHM.N: up 9.5% Livent Corp jumps on resuming Argentina lithium production ** RH RH.N: up 9.6% RH: Surges after announcing job cuts, cost savings ** Anworth Mortgage Asset Corp ANH.N: up 24.9% Anworth Mortgage rallies as REIT reduces MBS borrowings; may delay dividend ** Hewlett Packard HPE.N: up 6.3% Hewlett Packard withdraws FY20 outlook amid virus outbreak ** Immunomedics IMMU.O: up 99.8% Immunomedics soars on compelling trial data on breast cancer drug ** Vir Biotech VIR.O: up 16.0% Vir Biotech surges on GSK's $250 mln investment, deal for potential COVID-19 drug ** Advanced Micro Devices AMD.O: up 7.9% ** Applied Materials AMAT.O: up 8.4% ** Intel Corp INTC.O: up 5.2% ** Qualcomm Inc QCOM.O: !RIC {RIC.NB} is invalid ** Xilinx Inc XLNX.O: up 5.2% ** KLA Corp KLAC.O: up 10.5% Nomura Instinet sees opportunity in semiconductors amid virus outbreak- TheFly.com ** Millendo Therapeutics MLND.O: down 67.0% Millendo Therapeutics dives on scrapping drug trial for genetic illness ** Inovio Pharmaceuticals INO.O: up 7.0% Inovio rises on FDA nod for COVID-19 vaccine clinical trial ** CVS Health Corp CVS.N: up 1.7% CVS Health Corp: Rises on launch of two new drive-through COVID-19 testing sites ** Menlo Therapeutics MNLO.O: down 47.9% Menlo: Falls as skin treatment trials fail to meet goals ** RedHill Biopharma RDHL.O: up 20.8% RedHill Biopharma: Rises after dosing first COVID-19 patient with cancer drug ** Gilead Sciences GILD.O: down 1.6% Gilead Sciences: Rises on plan to ramp up production of COVID-19 trial drug ** Textron Inc TXT.N: up 7.5% Textron's business jet deliveries could fall by 25% in 2020 on virus hit - Jefferies ** Zoom Video ZM.O: down 7.0% Zoom Video: Falls on report of school districts banning Zoom, CS downgrade ** Starbucks SBUX.O: up 2.6% Starbucks: Brokerage raises PT, sees possible boost as Chinese rival faces new challenges ** Co-Diagnostics CODX.O: up 22.0% Co-Diagnostics: Jumps after FDA allows emergency use of co's COVID-19 test ** XBiotech Inc XBIT.O: up 4.7% XBiotech: Jumps on collaboration to develop COVID-19 treatment ** Hilton Worldwide Holdings HLT.N: up 10.3% ** Wynn Resorts WYNN.O: up 12.3% ** Royal Caribbean Cruises RCL.N: up 11.2% ** Marriott International Inc MAR.O: up 13.4% ** Carnival Corp CCL.N: up 15.7% ** Norwegian Cruise Line Holdings NCLH.N: up 9.6% ** Booking Holdings BKNG.O: up 7.7% ** Expedia Group Inc EXPE.O: up 7.3% Travel and leisure stocks climb on hopes of virus slowdown ** Goldman Sachs GS.N: up 5.6% ** JPMorgan JPM.N: up 5.1% ** Citigroup Inc C.N: up 6.4% ** Wells Fargo WFC.N: up 5.9% ** Bank of America BAC.N: up 5.1% ** Morgan Stanley MS.N: up 6.8% U.S. big banks rise amid broad market gains, higher yields ** Hess Corp HES.N: up 0.7% Hess: JPM sees strong Q1 but warns of challenges from extended oil weakness ** Tesla Inc TSLA.O: up 5.9% Tesla Inc: Jefferies upgrades to "buy" on robust Q1 deliveries The 11 major S&P 500 sectors: The 11 major S&P 500 sectors: Communication Services up 4.34% Consumer Discretionary
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Eikon search string for individual stock moves: STXBZ The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh The S&P 500 was on track to recoup about $1 trillion in market value on Monday in a frantic rally after New York, the biggest U.S. coronavirus hot spot, reported a fall in daily deaths, raising hopes that the pandemic could level-off soon. .N At 11:22 ET, the Dow Jones Industrial Average .DJI was up 4.75% at 22,051.6. The S&P 500 .SPX was up 4.62% at 2,603.75 and the Nasdaq Composite .IXIC was up 4.68% at 7,717.899.
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6096.0
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2020-04-06 00:00:00 UTC
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Coronavirus slowdown hopes set to boost Wall Street
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AAL
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https://www.nasdaq.com/articles/coronavirus-slowdown-hopes-set-to-boost-wall-street-2020-04-06
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nan
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nan
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By Uday Sampath Kumar and Shreyashi Sanyal
April 6 (Reuters) - The Dow Jones was set to jump 700 points at the open on Monday after President Donald Trump expressed hope that the coronavirus health crisis was "leveling-off" in some of the hardest-hit U.S. states.
Wall Street's main indexes fell more than 1.5% on Friday as the pandemic brought a 113-month expansion in U.S. employment to an end, a day after data showed weekly jobless claims surged to a record 6.65 million as drastic steps to save cash sparked mass staff furloughs.
Boeing Co BA.N said it was extending the suspension of production operations at its Washington state facilities and it would stop paying about 30,000 workers this week.
The planemaker's shares were up 5.6% in premarket trading after falling more than 60% this year.
New York, the country's biggest hot spot, reported on Sunday that for the first time in a week virus-related deaths in the state had fallen slightly from the day before.
Wall Street's fear gauge .VIX fell to its lowest in two weeks.
"Seeing signs of stabilization in New York City is probably the most important thing given the amount of capital that's controlled through managers that live in the area," said Thomas Hayes, managing member at Great Hill Capital LLC in New York.
"It's a tremendous relief for the market (but it's) not to say that we're through the woods yet, because we're going to have a tough week or two ahead."
The S&P 500 .SPX has lost more than $7 trillion since its mid February record high in a 27% plunge marked by wild day-to-day price swings, as the novel coronavirus spread deeper in the United States and wreaked economic havoc.
Profits for S&P 500 firms are expected to drop in the second quarter and investors fear more dire forecasts as demand across sectors including airlines, luxury goods and industrials evaporates.
At 08:27 a.m. ET, Dow e-minis 1YMcv1 were up 719 points, or 3.43%, S&P 500 e-minis EScv1 were up 86 points, or 3.46% and Nasdaq 100 e-minis NQcv1 were up 273.5 points, or 3.64%.
Goldman Sachs GS.N was one of the top gainers among Dow .DJI components, rising nearly 4%, as Wall Street's big banks tracked U.S. Treasury yields higher. US/
Delta Airlines DAL.O fell more than 6% as Warren Buffett's Berkshire Hathaway Inc BRKa.N cut its stake in the company, while Citigroup and JPMorgan cut their price targets on the stock.
Shares of American Airlines AAL.O and United Airlines UAL.O also fell more than 2%.
(Reporting by Uday Sampath, Shreyashi Sanyal and Medha Singh in Bengaluru; Editing by Saumyadeb Chakrabarty, Sagarika Jaisinghani and Shounak Dasgupta)
((UdaySampath.Kumar@thomsonreuters.com; within U.S.+1 646 223 8780; Twitter: @sampath_uday; Reuters Messaging: UdaySampath.Kumar.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shares of American Airlines AAL.O and United Airlines UAL.O also fell more than 2%. By Uday Sampath Kumar and Shreyashi Sanyal April 6 (Reuters) - The Dow Jones was set to jump 700 points at the open on Monday after President Donald Trump expressed hope that the coronavirus health crisis was "leveling-off" in some of the hardest-hit U.S. states. Wall Street's main indexes fell more than 1.5% on Friday as the pandemic brought a 113-month expansion in U.S. employment to an end, a day after data showed weekly jobless claims surged to a record 6.65 million as drastic steps to save cash sparked mass staff furloughs.
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Shares of American Airlines AAL.O and United Airlines UAL.O also fell more than 2%. By Uday Sampath Kumar and Shreyashi Sanyal April 6 (Reuters) - The Dow Jones was set to jump 700 points at the open on Monday after President Donald Trump expressed hope that the coronavirus health crisis was "leveling-off" in some of the hardest-hit U.S. states. ET, Dow e-minis 1YMcv1 were up 719 points, or 3.43%, S&P 500 e-minis EScv1 were up 86 points, or 3.46% and Nasdaq 100 e-minis NQcv1 were up 273.5 points, or 3.64%.
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Shares of American Airlines AAL.O and United Airlines UAL.O also fell more than 2%. By Uday Sampath Kumar and Shreyashi Sanyal April 6 (Reuters) - The Dow Jones was set to jump 700 points at the open on Monday after President Donald Trump expressed hope that the coronavirus health crisis was "leveling-off" in some of the hardest-hit U.S. states. Wall Street's main indexes fell more than 1.5% on Friday as the pandemic brought a 113-month expansion in U.S. employment to an end, a day after data showed weekly jobless claims surged to a record 6.65 million as drastic steps to save cash sparked mass staff furloughs.
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Shares of American Airlines AAL.O and United Airlines UAL.O also fell more than 2%. By Uday Sampath Kumar and Shreyashi Sanyal April 6 (Reuters) - The Dow Jones was set to jump 700 points at the open on Monday after President Donald Trump expressed hope that the coronavirus health crisis was "leveling-off" in some of the hardest-hit U.S. states. Wall Street's fear gauge .VIX fell to its lowest in two weeks.
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6097.0
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2020-04-06 00:00:00 UTC
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Futures jump on hopes of slowdown in coronavirus cases
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AAL
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https://www.nasdaq.com/articles/futures-jump-on-hopes-of-slowdown-in-coronavirus-cases-2020-04-06-0
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nan
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nan
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By Uday Sampath Kumar
April 6 (Reuters) - U.S. stock index futures jumped nearly 4% on Monday after President Donald Trump expressed hope that the coronavirus health crisis was "leveling-off" in some of the hardest-hit U.S. states.
New York, the country's biggest hot spot, reported on Sunday that for the first time in a week virus-related deaths in the state had fallen slightly from the day before.
The number of deaths in France and Italy also slowed, and Wall Street's fear gauge .VIX fell to its lowest in two weeks.
"This still looks like a case of over optimism," said Marios Hadjikyriacos, investment analyst at online broker XM.
"While traders are calm for now, will they remain so tranquil in the coming weeks as consumption falls off a cliff, unemployment skyrockets, and corporate earnings forecasts are slashed to oblivion?"
Wall Street's main indexes fell more than 1.5% on Friday as the pandemic brought a 113-month expansion in U.S. employment to an end, a day after data showed weekly jobless claims surged to a record 6.65 million as a liquidity crunch sparked mass staff furloughs.
Boeing Co BA.N said on Sunday it was extending the suspension of production operations at its Washington state facilities and it would stop paying about 30,000 workers this week.
The planemaker's shares were up 4% in premarket trading after falling more than 60% this year.
The benchmark S&P 500 .SPX has lost more than $7 trillion in market value since its mid February record high in a 27% plunge marked by wild day-to-day price swings, as the novel coronavirus spread deeper in the United States and wreaked economic havoc.
Profits for S&P 500 firms are widely expected to drop in the second quarter and investors fear more dire forecasts as demand across sectors including airlines, luxury goods and industrials evaporates.
Delta Airlines DAL.O fell more than 5% in premarket trading as Warren Buffett's Berkshire Hathaway Inc BRKa.N cut its stake in the company, while Citigroup and JPMorgan cut their price target on the stock.
Shares of American Airlines AAL.O, United Airlines UAL.O and JetBlue JBLU.O fell between 1.7% and 2.9%.
Goldman Sachs GS.N was one of the top gainers among Dow .DJI components, rising 4.3%, as Wall Street's big banks tracked U.S. Treasury yields higher.
At 07:50 a.m. ET, Dow e-minis 1YMcv1 were up 770 points, or 3.67%, S&P 500 e-minis EScv1 were up 92.5 points, or 3.73% and Nasdaq 100 e-minis NQcv1 were up 283.25 points, or 3.77%.
(Reporting by Uday Sampath, Shreyashi Sanyal and Medha Singh in Bengaluru; Editing by Saumyadeb Chakrabarty, Sagarika Jaisinghani and Shounak Dasgupta)
((UdaySampath.Kumar@thomsonreuters.com; within U.S.+1 646 223 8780; Twitter: @sampath_uday; Reuters Messaging: UdaySampath.Kumar.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shares of American Airlines AAL.O, United Airlines UAL.O and JetBlue JBLU.O fell between 1.7% and 2.9%. By Uday Sampath Kumar April 6 (Reuters) - U.S. stock index futures jumped nearly 4% on Monday after President Donald Trump expressed hope that the coronavirus health crisis was "leveling-off" in some of the hardest-hit U.S. states. Wall Street's main indexes fell more than 1.5% on Friday as the pandemic brought a 113-month expansion in U.S. employment to an end, a day after data showed weekly jobless claims surged to a record 6.65 million as a liquidity crunch sparked mass staff furloughs.
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Shares of American Airlines AAL.O, United Airlines UAL.O and JetBlue JBLU.O fell between 1.7% and 2.9%. By Uday Sampath Kumar April 6 (Reuters) - U.S. stock index futures jumped nearly 4% on Monday after President Donald Trump expressed hope that the coronavirus health crisis was "leveling-off" in some of the hardest-hit U.S. states. The number of deaths in France and Italy also slowed, and Wall Street's fear gauge .VIX fell to its lowest in two weeks.
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Shares of American Airlines AAL.O, United Airlines UAL.O and JetBlue JBLU.O fell between 1.7% and 2.9%. Wall Street's main indexes fell more than 1.5% on Friday as the pandemic brought a 113-month expansion in U.S. employment to an end, a day after data showed weekly jobless claims surged to a record 6.65 million as a liquidity crunch sparked mass staff furloughs. Delta Airlines DAL.O fell more than 5% in premarket trading as Warren Buffett's Berkshire Hathaway Inc BRKa.N cut its stake in the company, while Citigroup and JPMorgan cut their price target on the stock.
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Shares of American Airlines AAL.O, United Airlines UAL.O and JetBlue JBLU.O fell between 1.7% and 2.9%. By Uday Sampath Kumar April 6 (Reuters) - U.S. stock index futures jumped nearly 4% on Monday after President Donald Trump expressed hope that the coronavirus health crisis was "leveling-off" in some of the hardest-hit U.S. states. New York, the country's biggest hot spot, reported on Sunday that for the first time in a week virus-related deaths in the state had fallen slightly from the day before.
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6098.0
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2020-04-06 00:00:00 UTC
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Buffett Pulls Back on Airline Stocks, But Don't Fret ... Yet
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AAL
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https://www.nasdaq.com/articles/buffett-pulls-back-on-airline-stocks-but-dont-fret-...-yet-2020-04-06
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nan
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nan
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Berkshire Hathaway (BRK.B) chief Warren Buffett embraced airline stocks in a big way back in 2016, added to his holdings in February and said in March that he "won't be selling airline stocks" even as the industry reeled under the coronavirus-led collapse in air travel.
And then Warren Buffett up and sold some airline stocks.
SEE ALSO: 15 Super-Safe Dividend Stocks to Buy Now
On Friday, April 3, investors learned through regulatory disclosures that Berkshire had ditched 13 million shares of Delta Air Lines (DAL, $22.48) and 2.3 million shares of Southwest Airlines (LUV, $30.54). This revelation came earlier than the mid-May release of Berkshire's Form 13F because the firm held 10%-plus stakes in Delta and Southwest, mandating Buffett's holding company immediately disclose any material changes to those positions.
Berkshire also owns stakes in United Airlines (UAL, $22.89) and American Airlines (AAL, $9.39), but because those stakes are less than 10%, we likely won't find out about any moves in those holdings until the May 13F release.
Berkshire's Smaller Airline Stakes
Berkshire cut its DAL holdings by 18%. That's a substantial pullback but hardly a full-scale dumping. Berkshire's remaining stake of almost 59 million shares was worth about $1.3 billion as of April 3. And, importantly, BRK.B remains Delta's largest shareholder with 9.2% of the company's shares outstanding.
It's possible that Buffett pared the DAL stake only to get below the 10% ownership threshold that would trigger regulatory headaches, but neither he nor anyone else from Berkshire has commented on the sale.
As for LUV, Berkshire pared its stake by just 4%. The holding company still owns more than 51 million shares worth about $1.6 billion. And BRK.B remains Southwest's largest shareholder with 9.9% of the airline's shares outstanding. Again, it's possible Berkshire trimmed its LUV stake to stay on the right side of the 10% ownership threshold.
It's understandable if the Delta divestiture in particular left some investors scratching their heads. As recently as late February, Berkshire bought another 976,507 Delta shares. And then in an interview with Yahoo Finance on March 13, Buffett stated categorically, "I won't be selling airline stocks."
But then he did.
Buffett made no comment as to why he sold, which is typical, as he rarely comments on changes to Berkshire's portfolio.
Why Did Buffett Make the About-Face?
It's true that much has changed in the weeks since Buffett said he was standing pat. DAL stock has tumbled 41% since March 13 and is down 62% since the bull market top of Feb. 19. LUV has lost 26% since March 13 and cratered 47% since Feb. 19. The S&P 500 is off 26% since its mid-February peak.
It's also the case that elite investors admit when they're wrong and act accordingly. Perhaps Buffett is just taking his own advice: "The most important thing to do if you find yourself in a hole is to stop digging."
But a little perspective is in order, too.
Berkshire remains the No. 1 and No. 2 shareholder in DAL and LUV, respectively. The two airlines combined represent about 1.7% of Berkshire Hathaway's equity portfolio.
And, for good measure, Buffett's fund still has 82% of the Delta stake it reported in February, and 96% of the Southwest stake.
It goes without saying that the market will be following Buffett's moves in the airline sector even more closely than usual. But as disheartening as it might be to see Buffett sell these shares, it tells us nothing conclusive. Berkshire Hathaway remains very much involved in the air carrier industry.
Uncle Warren hasn't pulled the ripcord. At least not yet.
SEE ALSO: 11 Best Tech Stocks for the New Coronavirus Norm
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Berkshire also owns stakes in United Airlines (UAL, $22.89) and American Airlines (AAL, $9.39), but because those stakes are less than 10%, we likely won't find out about any moves in those holdings until the May 13F release. This revelation came earlier than the mid-May release of Berkshire's Form 13F because the firm held 10%-plus stakes in Delta and Southwest, mandating Buffett's holding company immediately disclose any material changes to those positions. It's possible that Buffett pared the DAL stake only to get below the 10% ownership threshold that would trigger regulatory headaches, but neither he nor anyone else from Berkshire has commented on the sale.
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Berkshire also owns stakes in United Airlines (UAL, $22.89) and American Airlines (AAL, $9.39), but because those stakes are less than 10%, we likely won't find out about any moves in those holdings until the May 13F release. SEE ALSO: 15 Super-Safe Dividend Stocks to Buy Now On Friday, April 3, investors learned through regulatory disclosures that Berkshire had ditched 13 million shares of Delta Air Lines (DAL, $22.48) and 2.3 million shares of Southwest Airlines (LUV, $30.54). And, importantly, BRK.B remains Delta's largest shareholder with 9.2% of the company's shares outstanding.
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Berkshire also owns stakes in United Airlines (UAL, $22.89) and American Airlines (AAL, $9.39), but because those stakes are less than 10%, we likely won't find out about any moves in those holdings until the May 13F release. Berkshire Hathaway (BRK.B) chief Warren Buffett embraced airline stocks in a big way back in 2016, added to his holdings in February and said in March that he "won't be selling airline stocks" even as the industry reeled under the coronavirus-led collapse in air travel. SEE ALSO: 15 Super-Safe Dividend Stocks to Buy Now On Friday, April 3, investors learned through regulatory disclosures that Berkshire had ditched 13 million shares of Delta Air Lines (DAL, $22.48) and 2.3 million shares of Southwest Airlines (LUV, $30.54).
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Berkshire also owns stakes in United Airlines (UAL, $22.89) and American Airlines (AAL, $9.39), but because those stakes are less than 10%, we likely won't find out about any moves in those holdings until the May 13F release. Berkshire Hathaway (BRK.B) chief Warren Buffett embraced airline stocks in a big way back in 2016, added to his holdings in February and said in March that he "won't be selling airline stocks" even as the industry reeled under the coronavirus-led collapse in air travel. Berkshire's Smaller Airline Stakes Berkshire cut its DAL holdings by 18%.
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6099.0
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2020-04-06 00:00:00 UTC
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Why Airline Shares Are Gaining Altitude Today
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AAL
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https://www.nasdaq.com/articles/why-airline-shares-are-gaining-altitude-today-2020-04-06
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nan
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nan
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What happened
Airline stocks are flying through turbulence right now, bouncing up and down based on sentiment about how long the COVID-19 pandemic will halt travel and how quickly demand for flights will recover.
On Monday, optimism dominated Wall Street, and airlines at least initially got caught in the updraft. Shares of JetBlue Airways (NASDAQ: JBLU) and Alaska Air Group (NYSE: ALK) both gained more than 10% early in the day, and United Airlines Holdings (NASDAQ: UAL), American Airlines Group (NASDAQ: AAL), and Delta Air Lines (NYSE: DAL) were all up more than 5%.
All of the stocks gave up some of the gains as the day wore on, and Delta actually turned slightly negative due to company-specific news, but there is a feeling of hope riding with the airlines on Monday.
So what
Airlines have been hit hard by the pandemic, with travel demand all but disappearing overnight. They have cut flights and grounded planes to try to trim costs, but no amount of cutting can offset no revenue coming in the door.
The U.S. government came through with $50 billion to support the industry, but that cash will only last for so long. After plunging for weeks, airlines have stabilized somewhat since the bailout became law. But investors remain worried that if traffic does not return in the months to come, bankruptcies are possible.
Image source: Getty Images.
Monday was a relatively upbeat day, with markets encouraged that the rise in COVID-19 cases in major hot spots seems to have slowed over the weekend. That at least allows for hope that the pandemic could be contained by late spring, and the economy could start normalizing as soon as the summer.
The industry also likely got a boost from research notes from both J.P. Morgan and Citigroup that, while cautious, assumed the airlines would be able to survive without bankruptcies.
Delta was the weakest of the major airlines on news that Berkshire Hathaway had sold part of its stake in the airline, barely a month removed from adding shares. Berkshire and Warren Buffett don't have the reputation for quickly moving in and out of positions, and the rapid reversal seems to have spooked investors hoping for a quick recovery.
Now what
It's worth noting Berkshire still has a substantial position in Delta. So even if the company and its famed investor aren't bullish on a quick rebound, from what is known, they are not predicting gloom or doom, either. Which feels about right: The airline sector is severely troubled right now, and in the worst case could end up with liquidations, but there is at least some reason for hope that a slow, gradual recovery is more likely.
For now, expect the airlines to trade up and down, not just on company- and industry-specific news but on updates on the pandemic and its impact on the U.S. economy as well. There will be good days, like today, and there are likely to be further down days, but for investors who can stomach the volatility and hold for the long haul, I continue to believe it is safe to consider airline stocks.
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Lou Whiteman owns shares of Berkshire Hathaway (B shares) and Delta Air Lines. The Motley Fool owns shares of and recommends Berkshire Hathaway (B shares) and Delta Air Lines. The Motley Fool recommends Alaska Air Group and JetBlue Airways 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.
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Shares of JetBlue Airways (NASDAQ: JBLU) and Alaska Air Group (NYSE: ALK) both gained more than 10% early in the day, and United Airlines Holdings (NASDAQ: UAL), American Airlines Group (NASDAQ: AAL), and Delta Air Lines (NYSE: DAL) were all up more than 5%. What happened Airline stocks are flying through turbulence right now, bouncing up and down based on sentiment about how long the COVID-19 pandemic will halt travel and how quickly demand for flights will recover. All of the stocks gave up some of the gains as the day wore on, and Delta actually turned slightly negative due to company-specific news, but there is a feeling of hope riding with the airlines on Monday.
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Shares of JetBlue Airways (NASDAQ: JBLU) and Alaska Air Group (NYSE: ALK) both gained more than 10% early in the day, and United Airlines Holdings (NASDAQ: UAL), American Airlines Group (NASDAQ: AAL), and Delta Air Lines (NYSE: DAL) were all up more than 5%. The Motley Fool owns shares of and recommends Berkshire Hathaway (B shares) and Delta Air Lines. The Motley Fool recommends Alaska Air Group and JetBlue Airways 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).
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Shares of JetBlue Airways (NASDAQ: JBLU) and Alaska Air Group (NYSE: ALK) both gained more than 10% early in the day, and United Airlines Holdings (NASDAQ: UAL), American Airlines Group (NASDAQ: AAL), and Delta Air Lines (NYSE: DAL) were all up more than 5%. See the 10 stocks *Stock Advisor returns as of March 18, 2020 Lou Whiteman owns shares of Berkshire Hathaway (B shares) and Delta Air Lines. The Motley Fool recommends Alaska Air Group and JetBlue Airways 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).
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Shares of JetBlue Airways (NASDAQ: JBLU) and Alaska Air Group (NYSE: ALK) both gained more than 10% early in the day, and United Airlines Holdings (NASDAQ: UAL), American Airlines Group (NASDAQ: AAL), and Delta Air Lines (NYSE: DAL) were all up more than 5%. See the 10 stocks *Stock Advisor returns as of March 18, 2020 Lou Whiteman owns shares of Berkshire Hathaway (B shares) and Delta Air Lines. The Motley Fool owns shares of and recommends Berkshire Hathaway (B shares) and Delta Air Lines.
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