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5900.0
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2020-05-11 00:00:00 UTC
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Wall Street set to drop on fear of new infection wave
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AAL
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https://www.nasdaq.com/articles/wall-street-set-to-drop-on-fear-of-new-infection-wave-2020-05-11
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nan
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nan
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By Medha Singh
May 11 (Reuters) - Wall Street's main indexes were set to fall at the open on Monday after last week's rally, as investors worried about a second wave of coronavirus infections with the reopening of several economies.
Germany and South Korea reported a surge in new COVID-19 cases on Sunday, in an ominous sign for all countries beginning to lift virus lockdowns.
"That's going to put water on the fire today," said Gerald Sparrow, portfolio manager of the Sparrow Growth Fund in St. Louis, Missouri.
"(Still), the difference now than four months ago is that governments and health organizations have more specific plans. The big tipping point is going to be if we can't come up with a medicine to treat the virus."
Battered travel-related stocks, including Carnival Corp CCL.N, Norwegian Cruise Line Holdings Ltd NCLH.N, American Airlines Group Inc AAL.O and United Airlines Holdings Inc UAL.O dropped more than 2% each in premarket trading.
Marriott International Inc MAR.O shed 2.5% as its quarterly profit fell short of already drastically lowered expectations, as bookings plunged.
Hopes of a pickup in business activity powered a Wall Street rally last week, with the Nasdaq .IXIC recouping all its losses for 2020 as investors looked past dire economic data, including a historic 20.5 million jobs wiped out in April.
However, the benchmark S&P 500 .SPX is still more than 13% below its February record high and analysts have warned of another selloff as macroeconomic data gets worse, foreshadowing a deep and lasting global recession.
"We think it's likely a stretch for investors to chase the move much higher from here," said Eoin Murray, head of investment at Federated Hermes.
After financial markets began pricing in negative U.S. interest rates for the first time ever last week, all eyes will be on Federal Reserve Chair Jerome Powell's outlook on the economy at a webcast event on Wednesday.
At 8:48 a.m. ET, Dow e-minis 1YMcv1 were down 291 points, or 1.2%. S&P 500 e-minis EScv1 were down 36.25 points, or 1.24% and Nasdaq 100 e-minis NQcv1 were down 89 points, or 0.97%.
Cosmetics maker Coty Inc COTY.N jumped 12.5% after agreeing to sell a majority stake in its professional beauty and retail hair businesses to investment firm KKR KKR.N in a deal valued at $4.3 billion.
Drug distributor Cardinal Health Inc CAH.N jumped 8% as the pandemic drove a surge in third-quarter sales, which topped market estimates.
(Reporting by Medha Singh and Sruthi Shankar in Bengaluru; Editing by Shounak Dasgupta)
((Medha.Singh@thomsonreuters.com; within U.S. +1646 223 8780, outside U.S. +91 80 6749 1130; Twitter: https://twitter.com/medhasinghs))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Battered travel-related stocks, including Carnival Corp CCL.N, Norwegian Cruise Line Holdings Ltd NCLH.N, American Airlines Group Inc AAL.O and United Airlines Holdings Inc UAL.O dropped more than 2% each in premarket trading. By Medha Singh May 11 (Reuters) - Wall Street's main indexes were set to fall at the open on Monday after last week's rally, as investors worried about a second wave of coronavirus infections with the reopening of several economies. Hopes of a pickup in business activity powered a Wall Street rally last week, with the Nasdaq .IXIC recouping all its losses for 2020 as investors looked past dire economic data, including a historic 20.5 million jobs wiped out in April.
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Battered travel-related stocks, including Carnival Corp CCL.N, Norwegian Cruise Line Holdings Ltd NCLH.N, American Airlines Group Inc AAL.O and United Airlines Holdings Inc UAL.O dropped more than 2% each in premarket trading. By Medha Singh May 11 (Reuters) - Wall Street's main indexes were set to fall at the open on Monday after last week's rally, as investors worried about a second wave of coronavirus infections with the reopening of several economies. Hopes of a pickup in business activity powered a Wall Street rally last week, with the Nasdaq .IXIC recouping all its losses for 2020 as investors looked past dire economic data, including a historic 20.5 million jobs wiped out in April.
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Battered travel-related stocks, including Carnival Corp CCL.N, Norwegian Cruise Line Holdings Ltd NCLH.N, American Airlines Group Inc AAL.O and United Airlines Holdings Inc UAL.O dropped more than 2% each in premarket trading. By Medha Singh May 11 (Reuters) - Wall Street's main indexes were set to fall at the open on Monday after last week's rally, as investors worried about a second wave of coronavirus infections with the reopening of several economies. Hopes of a pickup in business activity powered a Wall Street rally last week, with the Nasdaq .IXIC recouping all its losses for 2020 as investors looked past dire economic data, including a historic 20.5 million jobs wiped out in April.
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Battered travel-related stocks, including Carnival Corp CCL.N, Norwegian Cruise Line Holdings Ltd NCLH.N, American Airlines Group Inc AAL.O and United Airlines Holdings Inc UAL.O dropped more than 2% each in premarket trading. By Medha Singh May 11 (Reuters) - Wall Street's main indexes were set to fall at the open on Monday after last week's rally, as investors worried about a second wave of coronavirus infections with the reopening of several economies. Germany and South Korea reported a surge in new COVID-19 cases on Sunday, in an ominous sign for all countries beginning to lift virus lockdowns.
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37385c0d-d581-48df-8b86-8c7c7fb27a15
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5901.0
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2020-05-11 00:00:00 UTC
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Why Airline Stocks Are Falling Today
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AAL
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https://www.nasdaq.com/articles/why-airline-stocks-are-falling-today-2020-05-11
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nan
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nan
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What happened
Airline shares drifted lower on Monday along with the broader markets as investors appear to be having second thoughts about the speed with which the U.S. economy is reopening and the long-term implications of the COVID-19 pandemic. Markets, and airline stocks, were in the green last week as states began to talk about how to reopen, but it is clear there will be no quick recovery.
Shares of United Airlines Holdings (NASDAQ: UAL) opened down 7.7%, while Delta Air Lines (NYSE: DAL), American Airlines Group (NASDAQ: AAL), and Southwest Airlines (NYSE: LUV) all opened down 5%. The shares recovered some of those losses by midday, but it looks like another volatile day for airline stocks.
So what
Airlines have been hit hard by the pandemic, with the U.S. industry losing billions in the first quarter and expecting even worse losses in the second. The industry has grounded planes and cut schedules, and airlines have added liquidity through equity sales, debt offerings, and government support, but they still face an uncertain future.
Image source: Getty Images.
The airlines have enough liquidity to get through the summer, but at some point will need traffic to return to avoid a cash crunch. Until we have more clarity on when post-pandemic normalization will occur, and what the economy will look like when it does reopen, there are going to be doubts hanging over the shares. For now, it appears the major airline shares are moving up and down with broader market sentiment about the recovery.
Abroad, the news is not much better. International Consolidated Airlines Group CEO Willie Walsh told United Kingdom regulators on Monday that he does not expect operations to return to pre-pandemic levels until 2023 or 2024 and said it could be 2026 for some. Walsh has a good view at the pan-European outlook, as his company is the parent of British Airways, Spain's Iberia, and Aer Lingus of Ireland, among other airlines.
Although the U.S.-based airlines are more focused on when domestic markets will reopen, sustained weakness in transatlantic flying would cost American, Delta, and United the opportunity to generate more lucrative international business.
Now what
The good news for airline investors is the seemingly daily 10% drops at the height of the crisis may be in the past, but it is going to be hard for the stocks to really gain momentum with so much uncertainty about where things go from here. At best, we are likely looking at a multi-year recovery, and the stocks are unlikely to bounce back as quickly as the broader economy.
It is safe to invest in airlines, thanks to the liquidity infusion the sector has received in recent weeks. But given the risks that remain and the number of unknowns, investors who dare to buy in should stick to top performers including Delta and Southwest and avoid some of the industry's more questionable names.
10 stocks we like better than Southwest Airlines
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Southwest Airlines wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of April 16, 2020
Lou Whiteman owns shares of Delta Air Lines. 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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Shares of United Airlines Holdings (NASDAQ: UAL) opened down 7.7%, while Delta Air Lines (NYSE: DAL), American Airlines Group (NASDAQ: AAL), and Southwest Airlines (NYSE: LUV) all opened down 5%. What happened Airline shares drifted lower on Monday along with the broader markets as investors appear to be having second thoughts about the speed with which the U.S. economy is reopening and the long-term implications of the COVID-19 pandemic. International Consolidated Airlines Group CEO Willie Walsh told United Kingdom regulators on Monday that he does not expect operations to return to pre-pandemic levels until 2023 or 2024 and said it could be 2026 for some.
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Shares of United Airlines Holdings (NASDAQ: UAL) opened down 7.7%, while Delta Air Lines (NYSE: DAL), American Airlines Group (NASDAQ: AAL), and Southwest Airlines (NYSE: LUV) all opened down 5%. See the 10 stocks *Stock Advisor returns as of April 16, 2020 Lou Whiteman owns shares of Delta Air Lines. The Motley Fool owns shares of and recommends Delta Air Lines and Southwest Airlines.
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Shares of United Airlines Holdings (NASDAQ: UAL) opened down 7.7%, while Delta Air Lines (NYSE: DAL), American Airlines Group (NASDAQ: AAL), and Southwest Airlines (NYSE: LUV) all opened down 5%. 10 stocks we like better than Southwest Airlines When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. The Motley Fool owns shares of and recommends Delta Air Lines and Southwest Airlines.
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Shares of United Airlines Holdings (NASDAQ: UAL) opened down 7.7%, while Delta Air Lines (NYSE: DAL), American Airlines Group (NASDAQ: AAL), and Southwest Airlines (NYSE: LUV) all opened down 5%. What happened Airline shares drifted lower on Monday along with the broader markets as investors appear to be having second thoughts about the speed with which the U.S. economy is reopening and the long-term implications of the COVID-19 pandemic. That's right -- they think these 10 stocks are even better buys.
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19311c9f-d4a8-4bc0-bb3f-d57196ecced6
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5902.0
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2020-05-09 00:00:00 UTC
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2 Stocks I Bought This Week, and 2 Stocks I Sold
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AAL
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https://www.nasdaq.com/articles/2-stocks-i-bought-this-week-and-2-stocks-i-sold-2020-05-09
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nan
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nan
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Market gyrations are giving investors an opportunity to perform portfolio makeovers, and I've been doing some pruning and planing myself. Earlier this week, I sold a couple of stocks but initiated two positions, as well.
I sold my entire position in American Airlines Group (NASDAQ: AAL) and American Express (NYSE: AXP), but I can assure you that I'm not anti-American. I also bought into Cisco Systems (NASDAQ: CSCO) and Southwest Airlines (NYSE: LUV).
Why did I replace one airline for another? Why did I realize that -- when it comes to American Express stock -- that I should leave home without it? Did I pick up my shares of Cisco in a 1999 time capsule?
Let me go over all four of these portfolio moves.
Image source: Getty Images.
Swapping flights
Warren Buffett is pretty disciplined and methodical when it comes to his investments, so when he revealed this past weekend that he had sold his sizable stakes in all four of his airline stocks -- including American Airlines and Southwest -- it was easy to see why the sector took a hit. This has been a brutal year for the industry, given air-travel restrictions in light of the COVID-19 crisis, and Buffett apparently had enough.
I had bought into American Airlines early in the pandemic, and it's on me for getting bloodied trying to catch a falling knife. I knew I was buying a leveraged player in a slumping industry. I decided to follow Buffett on the way out of American, but I also saw this as an opportunity to pick up some of the Southwest shares he was discarding.
Southwest isn't perfect. Even when the going was good -- as it had been in an expanding economy -- gross margin contracted in each of the past four years. Revenue has grown in the low-single digits in that time, clocking in with a mere 2% advance in 2019.
Things will only get worse here, but Southwest has the strongest balance sheet in the industry. It's a market and customer darling. I also think there'll be a shakeout at the other end of this crisis.
I'm not sure if American will have the financial fortitude to see things through, but I'm fairly confident that Southwest would be the last one standing if things continue to deteriorate. I essentially swapped out one speculative airline for a less speculative one. I will never consider myself to be an expert in the airline industry, but I feel more confident holding a best-in-class player in these turbulent times.
Charging out of Amex
I don't usually let a single bad earnings report scare me out of a position, but there was a lot not to like in American Express' latest quarter. The financial-services giant posted a rare year-over-year decline in revenue after guiding to a small increase in its March update. Reported earnings took a beating, as American Express loaded up on credit-reserve builds as it braces for hard times.
Healthy credit card swiping activity in January and February understandably dried up near the end of the quarter. With unemployment rates spiking, it's easy to see why credit risks are bubbling up to the surface. However, what really scares me here is what's happening right now.
American Express has a ton of credit and charge card options for consumers, but the ones that command the highest annual fees are the ones that cater to travelers. Airline credits, free hotel-chain status, and in some cases complimentary stays are perks of the top American Express cards.
The company's customers aren't happy holding those high-fee cards in this climate with perks they can't use, so American Express is mixing things up. It's shifting the credits to wireless carriers, streaming services, groceries, and restaurant take-out for the balance of 2020.
The new perks are more likely to be used by customers, and that may help with retention. However, that's also probably going to cost American Express more in the process.
Cisco at the disco
I may be two decades too late to the dot-com bubble party, but now that Cisco is a slow-yet-steady player, there's a lot more to like than there was in the sudsy days of yore when demand for its routers and switches was booming. Cisco is still able to carve out a cozy living getting companies and consumers up to speed on their networking gear. No matter how this pandemic shakes out, we're going to need to improve our overall connectivity levels.
You have to go back to 2010 to find the last year in which Cisco posted double-digit revenue growth, but it has come through with reliable single-digit top-line gains in four of the past five fiscal years. There's also a juicy 3.4% yield for patient income investors, and Cisco is good for the payouts with its forward earnings multiple in the low teens.
All four of the stocks I traded this week aren't perfect. None of them will be on your list of top growth stocks. However, I think I'm taking advantage of falling airline stocks to snag an upgrade in a switch to Southwest. I'll probably be back into American Express once the coast is clear, but for now, I feel that Cisco is a safer play with a higher dividend.
10 stocks we like better than Cisco Systems
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 Cisco Systems 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
Rick Munarriz owns shares of Cisco Systems and Southwest Airlines. The Motley Fool owns shares of and recommends Southwest Airlines. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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I sold my entire position in American Airlines Group (NASDAQ: AAL) and American Express (NYSE: AXP), but I can assure you that I'm not anti-American. Charging out of Amex I don't usually let a single bad earnings report scare me out of a position, but there was a lot not to like in American Express' latest quarter. American Express has a ton of credit and charge card options for consumers, but the ones that command the highest annual fees are the ones that cater to travelers.
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I sold my entire position in American Airlines Group (NASDAQ: AAL) and American Express (NYSE: AXP), but I can assure you that I'm not anti-American. I also bought into Cisco Systems (NASDAQ: CSCO) and Southwest Airlines (NYSE: LUV). See the 10 stocks *Stock Advisor returns as of April 16, 2020 Rick Munarriz owns shares of Cisco Systems and Southwest Airlines.
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I sold my entire position in American Airlines Group (NASDAQ: AAL) and American Express (NYSE: AXP), but I can assure you that I'm not anti-American. Swapping flights Warren Buffett is pretty disciplined and methodical when it comes to his investments, so when he revealed this past weekend that he had sold his sizable stakes in all four of his airline stocks -- including American Airlines and Southwest -- it was easy to see why the sector took a hit. See the 10 stocks *Stock Advisor returns as of April 16, 2020 Rick Munarriz owns shares of Cisco Systems and Southwest Airlines.
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I sold my entire position in American Airlines Group (NASDAQ: AAL) and American Express (NYSE: AXP), but I can assure you that I'm not anti-American. Charging out of Amex I don't usually let a single bad earnings report scare me out of a position, but there was a lot not to like in American Express' latest quarter. You have to go back to 2010 to find the last year in which Cisco posted double-digit revenue growth, but it has come through with reliable single-digit top-line gains in four of the past five fiscal years.
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29fc0ab3-7a22-4722-95b5-2c927e89f481
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5903.0
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2020-05-09 00:00:00 UTC
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Warren Buffett Just Taught Investors Another Big Lesson About Greed
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AAL
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https://www.nasdaq.com/articles/warren-buffett-just-taught-investors-another-big-lesson-about-greed-2020-05-09
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nan
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nan
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In addition to being perhaps the most successful long-term investor in history, Warren Buffett has penned a host of memorable aphorisms in the course of writing dozens of annual Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) shareholder letters.
One of his most famous sayings dates back to the 1986 shareholder letter, when Buffett wrote: "Our goal is more modest: we simply attempt to be fearful when others are greedy and to be greedy only when others are fearful." He reiterated the point in another shareholder letter nearly two decades later, saying that if investors feel compelled to try to time the market, "they should try to be fearful when others are greedy and greedy only when others are fearful."
Many value investors probably thought they were following Buffett's advice by buying airline stocks hand over fist as they plunged between February and April. On average, shares of the four largest U.S. airlines -- American Airlines (NASDAQ: AAL), Delta Air Lines (NYSE: DAL), Southwest Airlines (NYSE: LUV), and United Airlines (NASDAQ: UAL) -- have lost about two-thirds of their value since mid-February.
Airline COVID-19 Stock Performance, data by YCharts.
If so, it must have been quite a shock to learn last Saturday that Buffett sold all of Berkshire Hathaway's substantial airline investments at a loss in recent months. (Moreover, he didn't make any major new stock acquisitions despite the market's big drop in March.) What gives?
The advice is about the stock market
The first thing to note about Buffett's sage advice regarding greed and fear is that he was talking about the stock market: not individual stocks. In his 1986 letter, Buffett said that he bought bonds with Berkshire's insurance float rather than stocks -- despite thinking the bonds were mediocre investments -- because stocks had been driven to irrationally high levels. Buffett had to do something with the money, and bonds served as a relatively safe placeholder while other investors were being greedy with stocks.
Buffett was even clearer in his 2004 letter. Just one paragraph before the quotation about greed and fear, Buffett opined that most investors' best strategy would be to buy and hold an index fund. He then advised investors that if they could not bring themselves to just buy and hold, they should try to be greedy when others were fearful. Presumably, he was still talking about buying an index fund -- not betting on individual stocks.
Buying an index fund when the market declines significantly is a strategy with good odds. There's some level of safety in being diversified across the whole economy. (It's still not foolproof: The market dropped 12% in 1929 and another 28% in 1930. That might have seemed like a good buying opportunity, but the S&P 500 then plunged 47% in 1931 and fell another 15% in 1932!) By contrast, shares of individual companies can plummet because their earnings prospects have permanently changed for the worse. At the limit, this can result in a company going bankrupt and the stock being canceled.
What goes down does not always go back up
Warren Buffett is keenly aware that this is true of the airline industry. He spent the better part of two decades warning investors against investing in airlines, noting that they had repeatedly destroyed investors' capital over the course of a century. (Of course, he changed his mind several years ago, building up big stakes in American Airlines, Delta Air Lines, Southwest Airlines, and United Airlines.)
Warren Buffett sold all of Berkshire Hathaway's airline stocks in recent months. Image source: American Airlines.
Berkshire Hathaway's investment in American Airlines stock was always somewhat strange given the airline's high debt and below-average margins. Yet the other three airlines had solid track records for free cash flow production prior to Berkshire getting involved. Given the structural changes to the U.S. airline industry (mainly consolidation), Buffett wasn't totally irrational to think that airlines had matured into high-quality businesses.
But as Buffett wrote in Berkshire Hathaway's 2001 annual letter, "... [Y]ou only find out who is swimming naked when the tide goes out." The tide has gone out in a big way for airlines in 2020. Demand has virtually evaporated. The result was that even industry stalwarts like Southwest and Delta -- which have earned consistently high margins in recent years -- lost money last quarter and are bracing for even bigger losses ahead. American and (to a lesser extent) United have had more mixed track records over the past few years and are even worse off now.
Buffett's recent venture into and out of airline stocks can best be explained in two sentences from Berkshire Hathaway's 1987 shareholder letter: "Our goal is to find an outstanding business at a sensible price, not a mediocre business at a bargain price. ... Of course, Charlie and I may misread the fundamental economics of a business." Airlines appeared to be high-quality businesses for most of the past few years. Today, they seem far more speculative in nature, making it natural for Buffett to admit his mistake and sell Berkshire's airline stocks.
Channel greed wisely
As I wrote last weekend, I think Warren Buffett is unduly pessimistic about the airline industry's prospects. As a result, I decided to double down on shares of Delta Air Lines and Southwest Airlines last month. Both airlines face severe business headwinds right now, but I believe investors (including Buffett) are underestimating their ability to adapt if demand remains virtually nonexistent for an extended period.
However, I have learned from Buffett that being greedy when the market is fearful does not mean buying indiscriminately. The money I used to increase my investment in Southwest Airlines stock came from selling American Airlines stock at a loss -- even though American's share price has fallen more than that of Southwest. While I had been optimistic about American's turnaround potential, it will have trouble navigating the current crisis successfully due to its massive debt load.
More broadly speaking, while the market sold off sharply in March, by the second week of April it was back near last summer's levels. There may still be a few bargains in the stock market, but investors must use extreme caution. Most of the stocks that are still nursing big losses probably deserved a big drubbing.
10 stocks we like better than Southwest Airlines
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Southwest Airlines wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of April 16, 2020
Adam Levine-Weinberg owns shares of Delta Air Lines and Southwest Airlines and is long January 2021 $40 calls on Southwest Airlines. 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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On average, shares of the four largest U.S. airlines -- American Airlines (NASDAQ: AAL), Delta Air Lines (NYSE: DAL), Southwest Airlines (NYSE: LUV), and United Airlines (NASDAQ: UAL) -- have lost about two-thirds of their value since mid-February. If so, it must have been quite a shock to learn last Saturday that Buffett sold all of Berkshire Hathaway's substantial airline investments at a loss in recent months. The result was that even industry stalwarts like Southwest and Delta -- which have earned consistently high margins in recent years -- lost money last quarter and are bracing for even bigger losses ahead.
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On average, shares of the four largest U.S. airlines -- American Airlines (NASDAQ: AAL), Delta Air Lines (NYSE: DAL), Southwest Airlines (NYSE: LUV), and United Airlines (NASDAQ: UAL) -- have lost about two-thirds of their value since mid-February. See the 10 stocks *Stock Advisor returns as of April 16, 2020 Adam Levine-Weinberg owns shares of Delta Air Lines and Southwest Airlines and is long January 2021 $40 calls on Southwest Airlines. 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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On average, shares of the four largest U.S. airlines -- American Airlines (NASDAQ: AAL), Delta Air Lines (NYSE: DAL), Southwest Airlines (NYSE: LUV), and United Airlines (NASDAQ: UAL) -- have lost about two-thirds of their value since mid-February. The money I used to increase my investment in Southwest Airlines stock came from selling American Airlines stock at a loss -- even though American's share price has fallen more than that of Southwest. 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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On average, shares of the four largest U.S. airlines -- American Airlines (NASDAQ: AAL), Delta Air Lines (NYSE: DAL), Southwest Airlines (NYSE: LUV), and United Airlines (NASDAQ: UAL) -- have lost about two-thirds of their value since mid-February. Berkshire Hathaway's investment in American Airlines stock was always somewhat strange given the airline's high debt and below-average margins. Buffett's recent venture into and out of airline stocks can best be explained in two sentences from Berkshire Hathaway's 1987 shareholder letter: "Our goal is to find an outstanding business at a sensible price, not a mediocre business at a bargain price.
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73b81fc5-4e7a-4273-9af4-5fc158343b63
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5904.0
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2020-05-09 00:00:00 UTC
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Major U.S. airlines endorse temperature checks for passengers
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AAL
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https://www.nasdaq.com/articles/major-u.s.-airlines-endorse-temperature-checks-for-passengers-2020-05-09
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nan
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nan
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By David Shepardson
WASHINGTON, May 9 (Reuters) - A major U.S. airline trade group on Saturday said it backed the U.S. Transportation Security Administration (TSA) checking the temperatures of passengers and customer-facing employees during the coronavirus pandemic.
Airlines for America, which represents the largest U.S. airlines including American Airlines AAL.O, United Airlines UAL.O, Delta Air Lines DAL.N and Southwest Airlines LUV.N, said the checks "will add an extra layer of protection for passengers as well as airline and airport employees. Temperature checks also will provide additional public confidence that is critical to relaunching air travel and our nation’s economy."
A U.S. official said Saturday no decision has been made on whether to mandate the checks, but said the issue is the subject of extensive talks among government agencies and with U.S. airlines and added a decision could potentially be made as early as next week.
One possible route would be for a pilot project or to initially begin temperature checks at the largest U.S. airports. Questions remain about what the government would do if someone had a high temperature and was turned away from a flight.
U.S. officials said the temperature checks would not eliminate the risk of coronavirus cases but could act as a deterrent to prevent people who were not feeling well from traveling.
TSA Administrator David Pekoske told employees during a town hall meeting Wednesday that no decision had been made regarding possible temperature checks of passengers at airports and that questions remained about where such checks might take place and which agency might perform them.
"It’s been a discussion that’s been ongoing for several weeks now," he said.
A TSA spokesman did not immediately comment Saturday.
Frontier Airlines said on Thursday it would begin temperature screenings for all passengers and crew members on June 1 and bar anyone with a temperature at or exceeding 100.4 degrees Fahrenheit (38 C).
The move, the first among major U.S. airlines, followed the industry mandating facial coverings for all passengers and heightened cleaning procedures to address coronavirus concerns.
The airline group said having temperature checks performed by the TSA "will ensure that procedures are standardized."
The endorsement comes amid signs of a modest travel rebound from historic lows. On Friday, TSA screened 215,444 people at airport checkpoints, the first time the number topped 200,000 since March 26. But that is still a fraction of the 2.6 million screened on the equivalent day last year.
(Reporting by David Shepardson Editing by Chris Reese)
((David.Shepardson@thomsonreuters.com; 2028988324;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Airlines for America, which represents the largest U.S. airlines including American Airlines AAL.O, United Airlines UAL.O, Delta Air Lines DAL.N and Southwest Airlines LUV.N, said the checks "will add an extra layer of protection for passengers as well as airline and airport employees. By David Shepardson WASHINGTON, May 9 (Reuters) - A major U.S. airline trade group on Saturday said it backed the U.S. Transportation Security Administration (TSA) checking the temperatures of passengers and customer-facing employees during the coronavirus pandemic. U.S. officials said the temperature checks would not eliminate the risk of coronavirus cases but could act as a deterrent to prevent people who were not feeling well from traveling.
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Airlines for America, which represents the largest U.S. airlines including American Airlines AAL.O, United Airlines UAL.O, Delta Air Lines DAL.N and Southwest Airlines LUV.N, said the checks "will add an extra layer of protection for passengers as well as airline and airport employees. By David Shepardson WASHINGTON, May 9 (Reuters) - A major U.S. airline trade group on Saturday said it backed the U.S. Transportation Security Administration (TSA) checking the temperatures of passengers and customer-facing employees during the coronavirus pandemic. One possible route would be for a pilot project or to initially begin temperature checks at the largest U.S. airports.
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Airlines for America, which represents the largest U.S. airlines including American Airlines AAL.O, United Airlines UAL.O, Delta Air Lines DAL.N and Southwest Airlines LUV.N, said the checks "will add an extra layer of protection for passengers as well as airline and airport employees. By David Shepardson WASHINGTON, May 9 (Reuters) - A major U.S. airline trade group on Saturday said it backed the U.S. Transportation Security Administration (TSA) checking the temperatures of passengers and customer-facing employees during the coronavirus pandemic. TSA Administrator David Pekoske told employees during a town hall meeting Wednesday that no decision had been made regarding possible temperature checks of passengers at airports and that questions remained about where such checks might take place and which agency might perform them.
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Airlines for America, which represents the largest U.S. airlines including American Airlines AAL.O, United Airlines UAL.O, Delta Air Lines DAL.N and Southwest Airlines LUV.N, said the checks "will add an extra layer of protection for passengers as well as airline and airport employees. By David Shepardson WASHINGTON, May 9 (Reuters) - A major U.S. airline trade group on Saturday said it backed the U.S. Transportation Security Administration (TSA) checking the temperatures of passengers and customer-facing employees during the coronavirus pandemic. TSA Administrator David Pekoske told employees during a town hall meeting Wednesday that no decision had been made regarding possible temperature checks of passengers at airports and that questions remained about where such checks might take place and which agency might perform them.
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2020-05-08 00:00:00 UTC
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What We Learned From Berkshire Hathaway's Annual Meeting
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https://www.nasdaq.com/articles/what-we-learned-from-berkshire-hathaways-annual-meeting-2020-05-08
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Warren Buffett and Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) Vice Chairman Greg Abel held the company's first-ever virtual annual meeting on Saturday, where we also got a look at Berkshire's first-quarter earnings report. In this episode of Industry Focus: Financials, host Jason Moser and Fool.com contributor Matt Frankel, CFP cover the key takeaways from the meeting and earnings, and give their take on Buffett's decision to sell all of Berkshire's airline stocks. Then, Matt's got his eye on Southwest Airlines (NYSE: LUV) despite Buffett's airline sales, while Jason's watching PayPal (NASDAQ: PYPL) ahead of the company's earnings report.
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 May 4, 2020.
Moser: It's Monday, May 4th. I'm your host Jason Moser, and on today's financial show, we're digging into this past weekend's installment of the Berkshire Hathaway annual meeting. Of course, we've got a couple of stocks we're watching this coming week. Joining me, as always, it's Certified Financial Planner, Berkshire Hathaway meeting know-it-all, I guess I could say, Matt Frankel. Matt, what's going on?
Matt Frankel: I hope not much. I was supposed to be in Omaha this past weekend. We all know what happened with that. I ordered some of the meeting tchotchkes that they normally sell there, like a pair of socks with Buffett's face on them and stuff like that. So, I'll at least feel like I was there.
Moser: Yeah, I had the good fortune to go to the meeting, it must have been seven years ago now or so; seven or eight years ago. And it obviously was in Omaha at the arena. And we were lucky, we got the press passes, so you get to go in there and sit up in the top row there, kind of, looking down on the entire meeting. It's really kind of overwhelming to see how many people this meeting attracts year-in and year-out. Calling it Woodstock for capitalists, I think is pretty apropos. Everybody is really excited to be there.
It's not just the meeting, it's everything leading up to the meeting. Nights before we went to Gorat's for dinner one night, we had the steak there. And now they've incorporated, I guess, what, that 5K run or whatever. So, they really are building this up to cater to an audience. That I think this is certainly going to extend well beyond the years where Charlie and Warren are running the show here. I mean, it really speaks to the culture they've built there.
Frankel: Yeah. And I'm planning to go next year. They're getting older, so I don't know how many are going to be with -- I mean, they might retire, you never know. At next year's meeting, Buffett will be 90 and Munger will be 97, so. [laughs]
Moser: Yeah. And speaking of that, you know, the age factor. Obviously, Warren was there, Charlie wasn't there this year. And Warren certainly made sure everybody knew that he was feeling OK and he just wasn't there. I thought it was pretty neat to hear that Charlie Munger has figured out how to use Zoom and he's zooming into some Berkshire meetings and helping get some stuff done just through the Zoom platform; that was pretty cool to see.
Frankel: Yeah, I'm wondering if just him being in the highest-risk group for the virus has anything to do with him not traveling.
Moser: It's a distinct possibility.
Frankel: I mean, at 96, that's the exact group that doesn't want to get this.
Moser: That is an at-risk population, that's the one that really needs to make sure they stay out of harm's way for sure. Well, let's dig into what went on this weekend, because I didn't sit down and watch the whole thing, but I caught it in dribs and drabs and saw a lot of the notes, I read a lot of the stuff that we put out on Fool.com. Matt, you wrote a great article there talking about earnings and more.
So, let's just open the discussion up here with the numbers first for the business. Let's look at the quarterly performance for the business, look at how Berkshire Hathaway as a company is doing. What stood out to you in the performance metrics, especially given the current situation?
Frankel: Well, the headline numbers, first of all, don't really matter in Berkshire's case. Berkshire reported a loss of almost $50 billion for the quarter, but the company didn't actually lose that money, that's just the performance of its stock portfolio by March 31st.
So, the better numbers, operating profit, meaning how Berkshire's actual operating businesses, like, GEICO, etc., did. Operating profit increased by 6% from last year. So, the operating businesses are OK. It's really important to note that just the declines in earnings and that giant loss I just mentioned are just due to unrealized profits and losses in the stock portfolio.
Moser: Yeah. And it's worth noting, Berkshire is a very insurance-heavy business. I mean, let's look beyond just its stock portfolio. I mean, when you talk about those wholly owned businesses, the two biggest, if I'm not mistaken, are Burlington Northern Santa Fe and GEICO. I think Burlington Northern actually is a little bit bigger, but for all intents and purposes, they're basically the same size. But I mean, that gives you an idea, beyond the stock portfolio, of the actual fundamentals of this business. I mean, this is an insurance business for the most part it seems.
Frankel: Yeah, Berkshire focuses on insurance; the railroad you said is a massive business; they also have their energy business, which is a huge component of it; I know they own a bunch of utility companies, which is a big Buffett favorite. And then a bunch of other kinds of smaller -- I say smaller, but I'm talking about, like, Duracell and Dairy Queen. And so, these aren't tiny businesses, and there's about 60 of them altogether right now. So, those are doing OK as a whole.
Some of them, like, obviously, the Berkshire's furniture stores are generally closed right now, so. Like, things like that. But for the most part, his businesses are pretty recession proof. And including this crash, which is decimating recession-proof businesses even, a lot of them are doing just fine, like, GEICO, you know, they're giving everybody a 15% refund on their auto insurance premiums. But I got to think that their exposure is declining by more than 15% because no one's driving.
Moser: Yeah, I would imagine that's a good way to look at it. I mean, it's certainly a nice way for businesses -- I mean, GEICO certainly isn't the only one doing that, but we're seeing a lot of insurance companies passing those savings along, and that's great to see. But to your point there, I mean, insurance, we look at as being, generally speaking, fairly recession-resistant. I mean, I don't think anything is really recession-proof, but insurance is a pretty reliable revenue stream, right? Whether it's homeowners or auto or life, whatever it may be, insurance is one of those things, this is a pretty reliable revenue stream. Which even when you look forward and you see the uncertainty in the insurance space. We talked about this with Travelers, of course, a couple of weeks ago, I guess. Plenty of uncertainty there as far as claims for this and otherwise. But still, insurance is a pretty stable business and I think that's going to make investors feel pretty good.
Now, when we talk about Berkshire Hathaway, we talk about these wholly owned businesses, the culture that they've built, we also talk about the investments that Buffett and Munger make and their deputies there, Todd and Ted, they are really good at investing. And we looked at them as sort of our North Star for a lot of reasons there.
It was a little bit surprising to me, for all of the talking and the action and the opportunities that we saw come up here over the past several weeks here, given the coronavirus situation, it really does look like Buffett and Berkshire Hathaway have been holding off on really putting a lot of that money to work, haven't they?
Frankel: Yeah, this really, really shocked me when I saw the numbers. Their cash hoard has actually grown, now it's at a new record, $137 billion. So, it looks like they did buy some stocks. The number goes up for other reasons, for example, the other operating businesses generate some money that gets thrown into the cash pile. That doesn't mean they sold stocks. But it looks like they bought about $3 billion worth of stock, just looking at the cost basis of the entire portfolio at the end of the year and then again on March 31st. So, it looks like they bought about $3 billion. We'll find out what they bought in a couple of weeks, but I got to say, I was disappointed at this.
The big thesis for owning Berkshire as opposed to a more exciting growth stock is that Warren Buffett and his team are really good at putting money to work at the right times. And so far anyway, again, this only covers through March 31st, but so far it doesn't look like that's really happened.
Moser: Now, why do you think that might be? Do you feel like maybe, given the chain of command there, I mean, it does seem like they give Todd and Ted pretty much, I don't want to say full autonomy, but it sure does feel like they have a lot of freedom to just kind of do what they really feel like is best at any given point in time. What do you feel like, is the trepidation more of a process thing or do you think -- like, I've seen all over Twitter, everybody talking about Buffett not buying stocks, building up that cash hoard.
Given the exposure Berkshire Hathaway has to such a cross-section of the economy, perhaps they see more pain to come, what do you think it is? Do you think it's a process thing or do you think maybe they're thinking there's another shoe to drop?
Frankel: Well, I mean, one thing Buffett and Munger both said is that they wanted to preserve their cash; in case anything bad happens, they want to have tons of cash. There's nothing that could happen that you need $137 billion for it. So, I buy that excuse for the first $40 billion or $50 billion of it.
However, I'm not saying Buffett sees another shoe to drop here, but I don't think he's convinced that the opportunities are going to be over any time soon. I mean, right now, the market is still pretty down in the dumps. And like I said that only covered through March 31st, so he could have been buying stuff in April and he could buy stuff in May as the dust settles.
And everyone always talks about his financial crisis investments, and I know you were going to bring that one up in a minute. But the Bank of America investment --
Moser: Well, yeah, jump into that for a minute, because we all looked at that at the time and thought, Bank of America was, kind of, just getting out of that whole mortgage-backed security crisis there, you know, nasty acquisition, really just almost basically write that thing to zero, was that Countrywide? I mean, it didn't seem like, it just kind of left a bad taste in your mouth. It took a little while for that play out.
Frankel: Yeah, definitely. And I mean, the thing that really people should remember, if you're disappointed about Berkshire's non-investment right now, as I kind of am, keep the timetable of that in mind. The Bank of America investment, even now, essentially quadrupled Buffett's money. He put in $5 billion, ended up with over $20 billion right now. So, it quadrupled, but keep the timetable in mind. He didn't even make that investment until 2011. Meanwhile, the financial crisis was 2008 to 2009. So, a lot of these companies are going to be hurt for a while.
And he mentioned the Fed's action. The Fed and the government have just been injecting money into businesses and the economy right now. So, a lot of businesses aren't knocking on the door yet, needing money or needing funding or anything like that, because they're getting it from the government. That's not going to last forever. So, I see kind of a longer tail to trickle of businesses running into capital problems as this plays out. We'll see how much the government keeps doing. I don't know if they're going to pass a $2 trillion spending bill every few weeks to keep this thing going.
Moser: [laughs] Well, I'd argue that if they intend on keeping things shutdown, they better just plan on keeping this as a revolving door, because as long as they want to keep things shut down, they're going to have to keep that spigot open.
Frankel: I agree. My worry is that they're going to let everything reopen, you know, two, three, four whatever months from now and then demand isn't going to come back 100% right away and that's what you're going to see some businesses start to hurt, and that's when Buffett's phone might ring.
Moser: And that's a good point there. I mean, I think we've talked about the two-sided nature of the recovery, whenever we see this recovery start to materialize. It is going to be a slow chug, it's not going to be something where you just open the doors and everybody's back out and at 'em. And we've seen a great example there, whether you agree or disagree with states reopening their economies and at least giving restaurants, for example, the opportunity to get their businesses back open. It's not saying you have to, it's saying there's the option, you have that option to do that if you want. If you feel like you can do it in a safe fashion, and we're certainly seeing some do it, but we're seeing plenty saying, you know what? I think I'd rather feel a little bit better just hang on for a little while longer, seeing how this plays out. So, I mean, I think it all speaks to it will be a slow recovery, it's not going to be something that just happens overnight.
Frankel: That's true. And South Carolina just opened its restaurants today for outdoor seating.
Moser: Oh, wow! Yeah, well, see? I mean that's --
Frankel: And a lot of places are being smart about it, they're like, blocking off half the parking lot and putting big tents up and putting tables under them. [laughs] So, they're being smart.
Moser: We're seeing a lot of great innovation, you know, we're seeing a lot of great innovation. And my mom and dad are down in Georgia, there they see both sides of it as well. I mean, it's a frustrating time, but by the same token you give people at least the choice to try something and you start to see some neat innovation there and new ways of doing things. And whether it's a restaurant or the doctor's office, we're certainly seeing innovation in all sorts of areas of the economy now.
I wanted to ask you about buybacks. We've seen Buffett's buyback philosophy evolve over time. I mean, they had that, I think, 1.2X book, sort of, measuring stick that they've always been using, they may kind of open it up to their discretion, have they been buying back much of their own stock lately?
Frankel: Uh! That's another one. [laughs] You're bringing up all the bad stuff, Jason.
Moser: Well, we'll get to some good stuff --
Frankel: [laughs] Berkshire spent $1.7 billion thereabouts on buybacks during the quarter, which is high compared to some recent quarters, but it's you know, 0.4% of their outstanding shares. Not doing big buybacks, and not just the amount of the buybacks, it's the timing that's been frustrating. Just to name the biggest part of the buyback, they spent a little over $1 billion in late-February, at an average price of $214, the company is currently trading for $177. Toward the end of March, Berkshire was trading in the $160s at one point, actually below book value, you mentioned the 1.2 multiple; they actually went below book value for a period. And the company didn't buy any at that time.
So, that's what's frustrating, and Buffett addressed this during the meeting. And the way he explained it, and it makes sense to some degree, is that they look at a snapshot in time and whether or not shares are trading for more or less than their intrinsic value. At the bottom of the collapse, the stock price had been down 40% or whatever or the stock portfolio that Berkshire owns. And, yes, while Berkshire's stock price had declined, so did the value of the assets it represents. And it didn't represent that much of a discount to the assets as it might have appeared. It's not just Berkshire stock price, it's the stock price relative to the asset value as they're hitting the buyback button.
Moser: I do get that, I mean, that does make sense, that does make sense, I do get it. I guess, it goes to show that even the great ones, it's still not always so cut-and-dry, and it's a marathon, not a sprint too. I think that's something that's always worth remembering. Your Bank of America point there, I think was really good one, in that, you see something there but we can never really nail down the actual time and that's why we take patience in that long view into such account [...]
Frankel: And like you said, the government's -- and I agree with you that as long as they're going to keep things shut down, the government will throw money at this thing. The fear is, you know, after this is over -- and same thing during the financial crisis with the big stimulus packages that came in '08 and '09, did you hear about any stimulus packages in 2010 when people were still going into foreclosure and things like that? No.
So, you're going to have this, kind of, long-tailed problem that people are going to start running out of money after this is over because demand is not going to come up right away and there's no more government help coming. So, Buffett said the phone is not ringing yet, there's a good reason for it, people don't need money or companies don't need money, and if they do, they're getting it from the government and at much better terms than Buffett would give them, I promise you that.
Moser: I would imagine. [laughs]
Frankel: Buffett usually wants, for a great investment opportunity, Buffett wants 6% to 7% return on capital. And that's for a fantastic opportunity. If he's taking risk, he wants even more than that. And right now, I think the CARES Act alone is worth what, 1% interest with a lot of it forgivable? Yeah, Buffett it's not going to give any of that.
So, as long as the government funding is available, it makes sense that there wouldn't be any big opportunities. I wish he would have put more money in the stock portfolio. I get why there's no acquisition opportunities, but I wish he would have put more of that money to work in stocks, especially when great companies like Apple were, like, down in the dumpster in the past month or so.
Moser: It's a good point. OK, Matt, I don't mean to harp on the bad news here, but we have to address really the elephant in the room here, and that is the airlines. This is one where, I'd imagine airlines probably built a pretty firm stance on whether you think airlines are a good investment or not, but the bottom-line is that Berkshire has, I think, liquidated their full positions in their four major airline investments that they had. And that was American, Delta, Southwest and United. They announced on Saturday, they've dumped those shares and are moving on to greener pastures.
Now, I don't hold that against them at all. I mean, I've certainly always sided on the one, I don't want to invest in airlines, just generally speaking I'm not a big fan and I've talked about why before.
Now, I personally think there's a great lesson here for investors. I think this is one of these times where we can still glean lessons from the old man here. And I think being able to look at a situation and change your mind when the facts change, admit that, hey, maybe you got it wrong and move forward. I mean, there's an opportunity cost to hanging on there, to see if this thing bounces back. And I think it's probably reasonable to assume that airlines aren't going to bounce back in a quick fashion regardless of the recovery timeline. But what was your take there? I mean, that was, I don't know, did you feel like those were good investments from the beginning? Or, I don't know, he seems so conflicted on airlines.
Frankel: I don't know if they were good investors from the beginning. I mean, this is an unprecedented situation, no one could have seen it coming. This just completely changes the dynamics of a thousand different stocks, not just the airlines, but having said that, I don't necessarily think that the airlines are a bad long-term investor right now. I mean, some of them are in bad shape, like, American, for example, I think, is in pretty terrible shape, but there are some good, long-term risk-reward profiles there.
The Buffett quote that this really reminds me of is the one that says, "it's better to buy a wonderful business at a fair price than a fair business at a wonderful price." And right now, airlines are fair businesses selling at wonderful prices, at best. So, Buffett doesn't like fair business at wonderful prices, so it makes sense that he would keep trying to pull out that capital and set it aside for when there are some wonderful businesses to buy at fair prices. It's, kind of ,where I think it's heads out with this. It's not that he doesn't think that United Airways is going to be worth more in 10 years than it is today, it's not that he doesn't think that, it's that he doesn't know enough to make that call at this point. And he's not willing to roll the dice with his investors' money.
Moser: Yeah. And I think that makes sense. I think a lot of us probably look at this and think that the airlines are going to be dealing with a tougher situation than a lot. They're not going to go away, but, yeah, just, I don't know, airlines have always struck me as, sort of, commodity-like, in that, people are just ultimately trying to get from point A. to point B. and they want to do it for a cheap price.
Frankel: They're historically poorly run in terms of capital. I think we talked about one on one of the other shows where they spent, like, what, 94%, 96% of their money on buybacks over the past few years, like, that's terrible. [laughs]
Moser: It is. And especially given the capital nature of those businesses. The heavy capital nature of those businesses. I mean, yeah, I do feel like that's one where you really want to build up that rainy-day fund. You want to have an exceptional rainy-day fund, because you got to figure that rainy-day is coming every once in a while.
Frankel: Right. It's like, I don't think stocks are a bad place to put your money, but if I spend 95% of what I make on the stock market, it wouldn't leave a whole lot of cushion if I needed money for anything else, so. [laughs]
Moser: No. Which is why we tell people not to do that, Matt. [laughs]
Frankel: [laughs] Right. There's a reason that airlines have been bankrupt a few times before, and that Buffett stayed away from them for so long, there's a reason for it, but I don't know, this just threw a wrench in his plans.
Moser: Yeah, I mean not the greatest investment, but I look at it from the glass half-full perspective. I just think this is a great lesson for younger investors to takeaway, is that, when the facts change, be willing to change your mind. And I think that gets easier the older you get, but there's always a little hubris there, you never really want to admit you got it wrong. And you can make the argument, oh, you hang on to those shares, just give it time, it'll come back. Maybe, maybe not, you know, there's an opportunity cost to hanging on to those shares, you could put that money to work elsewhere. And I bet you, they probably are thinking very long and hard about that right now as well.
The quote that you noted there earlier, the quote that just made me think of, was you hear from him and Sir Richard Branson, "You want to be a millionaire? Start with $1 billion and launch a new airline." You know that seems to be about how that market works out.
OK. Matt, before we wrap up the discussion here on Berkshire, I think everyone is always thinking about this going into the meeting and thinking about it probably even more as the meeting wraps up, where do we stand on the succession question, is there any more clarity there or we still, kind of like, just more or less guessing?
Frankel: Not really. I mean, the decision to have Greg Abel sitting in the chair next to him, instead of Munger, instead of some of the other candidates -- I think Abel is the younger of the two of the Vice Chairman, I'm not 100%, I'm pretty sure he's the younger of the two. The two stock pickers are not in the mix. Ted and Todd are going to be the stock pickers, they're not going to be the CEO.
Moser: And I imagine, they probably wouldn't want to be. They probably got their dream jobs [...] what they can do.
Frankel: [laughs] Right. They don't want to run Berkshire, they want to run some of its investments. So, in my opinion this is going to be Abel, but either of the two Vice Chairman would do just fine in the role. They've been with Berkshire for a while.
I mean, Abel has been with Berkshire through '99. He's been there 20 years, he's trusted. [laughs] Like, no one else has ever sat in that chair next to Warren Buffett during Berkshire's meetings. So, for him to be the first ...
Moser: Well, it's good to know that he's willing and able. [laughs]
Frankel: I see what you did there. [laughs]
Moser: All right. OK. Well, before we wrap up the show, of course, we want to jump into our ones to watch. Stocks that we've got on our radar here for the coming week. Matt, I'll let you take it here, what is the stock you are watching this week?
Frankel: Well, I mentioned that there are some opportunities long-term in the airlines. I'm watching Southwest Airlines, I've been a fan for a while, I've been thinking of buying shares at these lower prices. And not that I like to go against Buffett, but I don't think he sold Southwest because he thinks it's a terrible business.
I like it for two reasons. One, it's the best capital position of any of the four major airlines, meaning that they have the liquidity for a more extended shutdown than any of the other three. And two, they're pretty much exclusively dependent on domestic business, which I think, domestic air travel is going to come back a lot quicker than international travel.
Moser: I think that's probably a fair assumption; I think that's a fair assumption.
Frankel: So, yeah, like American and Delta, their international routes are going to be shut down for the foreseeable future. Treasury Secretary Mnuchin just said this morning that he didn't see international travel really making a rebound anytime soon, but it's a great time to explore America.
Moser: Yeah, it's a big country with a lot of cool stuff and probably a good time to keep Booking.com on your radar as well. But Booking.com is not the stock I'm going with, actually the one I'm keeping on my radar this week is PayPal. PayPal earnings come out on May 6th, so on Wednesday.
Ultimately, just looking at all of the usual suspects, in regard to the report, total accounts, money flowing through the networks, how Venmo is doing. There was a really good interview recently through Fortune with CEO Dan Schulman, who just talked about how this period of time has accelerated the move toward digital payments and what they're doing there with PayPal and other networks like Stripe and Square and what not. So, just really looking for, just sort of, a status update with how the company is doing, I'm sure they're doing really well. And I remain a very happy shareholder, but we will find out this week.
But that's going to do it for us this week, Matt. I appreciate you taking the time out to give us the lowdown on what happened with the Berkshire Hathaway annual meeting this year. And fingers crossed for you, my man. I think that you'll be able to get to it next year, and I know that if you do, you're going to love it.
Frankel: Yeah, hopefully, we'll be having this conversation with me [laughs] at the arena or in a hotel room somewhere in Omaha next year.
Moser: Maybe I'll buy a ticket and come out there and join you. It's always worth the trip. It's a fun event.
Frankel: Just stay six feet away.
Moser: [laughs] Will do. And remember, folks, you can always reach out to us on Twitter @MFIndustryFocus, or drop us an email at IndustryFocus@Fool.com.
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, don't buy or sell stocks based solely on what you hear.
Thanks, as always, to our man Austin Morgan for making the magic happen. For Matt Frankel, I'm Jason Moser, thanks for listening and we'll see you next week.
Jason Moser owns shares of Booking Holdings, PayPal Holdings, Square, and Twitter. Matthew Frankel, CFP owns shares of Bank of America, Berkshire Hathaway (B shares), and Square. The Motley Fool owns shares of and recommends Berkshire Hathaway (B shares), Booking Holdings, Delta Air Lines, PayPal Holdings, Southwest Airlines, Square, Twitter, and Zoom Video Communications 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 May 2020 $120 calls on Zoom Video Communications, short September 2020 $70 puts on Square, short June 2020 $205 calls on Berkshire Hathaway (B shares), and long January 2022 $75 calls on PayPal Holdings. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In this episode of Industry Focus: Financials, host Jason Moser and Fool.com contributor Matt Frankel, CFP cover the key takeaways from the meeting and earnings, and give their take on Buffett's decision to sell all of Berkshire's airline stocks. It was a little bit surprising to me, for all of the talking and the action and the opportunities that we saw come up here over the past several weeks here, given the coronavirus situation, it really does look like Buffett and Berkshire Hathaway have been holding off on really putting a lot of that money to work, haven't they? There was a really good interview recently through Fortune with CEO Dan Schulman, who just talked about how this period of time has accelerated the move toward digital payments and what they're doing there with PayPal and other networks like Stripe and Square and what not.
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Warren Buffett and Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) Vice Chairman Greg Abel held the company's first-ever virtual annual meeting on Saturday, where we also got a look at Berkshire's first-quarter earnings report. In this episode of Industry Focus: Financials, host Jason Moser and Fool.com contributor Matt Frankel, CFP cover the key takeaways from the meeting and earnings, and give their take on Buffett's decision to sell all of Berkshire's airline stocks. The Motley Fool owns shares of and recommends Berkshire Hathaway (B shares), Booking Holdings, Delta Air Lines, PayPal Holdings, Southwest Airlines, Square, Twitter, and Zoom Video Communications 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 May 2020 $120 calls on Zoom Video Communications, short September 2020 $70 puts on Square, short June 2020 $205 calls on Berkshire Hathaway (B shares), and long January 2022 $75 calls on PayPal Holdings.
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So, Buffett said the phone is not ringing yet, there's a good reason for it, people don't need money or companies don't need money, and if they do, they're getting it from the government and at much better terms than Buffett would give them, I promise you that. It's like, I don't think stocks are a bad place to put your money, but if I spend 95% of what I make on the stock market, it wouldn't leave a whole lot of cushion if I needed money for anything else, so. The Motley Fool owns shares of and recommends Berkshire Hathaway (B shares), Booking Holdings, Delta Air Lines, PayPal Holdings, Southwest Airlines, Square, Twitter, and Zoom Video Communications 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 May 2020 $120 calls on Zoom Video Communications, short September 2020 $70 puts on Square, short June 2020 $205 calls on Berkshire Hathaway (B shares), and long January 2022 $75 calls on PayPal Holdings.
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But still, insurance is a pretty stable business and I think that's going to make investors feel pretty good. [laughs] Frankel: Buffett usually wants, for a great investment opportunity, Buffett wants 6% to 7% return on capital. It's not that he doesn't think that United Airways is going to be worth more in 10 years than it is today, it's not that he doesn't think that, it's that he doesn't know enough to make that call at this point.
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aca29b7b-d280-443d-85cd-aef17d503177
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5906.0
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2020-05-08 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-2020-05-08
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nan
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nan
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What happened
Has sentiment finally turned in favor of airline stocks? The sector enjoyed another day in the green on Friday, buoyed by improving optimism as states begin to reopen. And carriers got through earnings reporting season without any major disasters.
Shares of Allegiant Travel (NASDAQ: ALGT), United Airlines Holdings (NASDAQ: UAL) and JetBlue Airways (NASDAQ: JBLU) closed up more than 11%, with Hawaiian Holdings (NASDAQ: HA) up more than 9%. Shares of Southwest Airlines (NYSE: LUV), American Airlines Group (NASDAQ: AAL), Alaska Air Group (NYSE: ALK), and Delta Air Lines (NYSE: DAL) were each up about 5% or more.
So what
Airlines have been hit hard by the COVID-19 pandemic, with all of the stocks mentioned above down between 50% and 71% year to date. The pandemic has brought global travel demand to a halt, leaving the companies scrambling to survive.
Image source: Getty Images.
The crisis has caused many shareholders, including one of the world's most famous investors, to abandon them. And for weeks there has been a feeling of inevitable bankruptcies lingering over the sector.
First-quarter earnings season seems to have done a lot to change the sentiment surrounding the carriers. The airlines lost billions, and warned they are going to lose even more in the second quarter. But every one of the companies also detailed extensive cost-cutting campaigns that will bring down cash burn by the end of the quarter. And thanks in part to the CARES Act stimulus, which provided carriers with up to $50 billion in liquidity, the industry seems to have sufficient cash to last at least into the summer.
Now what
There is still a lot that can go wrong for the airlines from here. While the industry has ample liquidity for now, no business can survive indefinitely with hardly any revenue coming in. Even if states begin to reopen and the economy gets back up and running, we are likely to have a recession, and airlines historically have performed poorly during downturns.
Until we have a clearer picture of whether the pandemic is actually contained, and what economic activity will look like post-pandemic, it is going to be difficult for the airlines to make up all the ground they have lost this year. But the positive overall market sentiment has seemingly finally spread to the airlines, and the stocks could continue to drift higher along with the broader markets.
Given the risks, I'd advise sticking to top operators like Southwest and Delta. American Airlines has the industry's highest debt load, and had perhaps the industry's worstearnings calland could still run into trouble. Hawaiian and JetBlue have models that don't lend themselves to outperformance during a recession.
I believe the airlines can survive, but the recovery is going to take time. Investors buying in right now should expect a long wait.
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. The Motley Fool owns shares of and recommends Delta Air Lines and Southwest 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 Southwest Airlines (NYSE: LUV), American Airlines Group (NASDAQ: AAL), Alaska Air Group (NYSE: ALK), and Delta Air Lines (NYSE: DAL) were each up about 5% or more. And thanks in part to the CARES Act stimulus, which provided carriers with up to $50 billion in liquidity, the industry seems to have sufficient cash to last at least into the summer. Even if states begin to reopen and the economy gets back up and running, we are likely to have a recession, and airlines historically have performed poorly during downturns.
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Shares of Southwest Airlines (NYSE: LUV), American Airlines Group (NASDAQ: AAL), Alaska Air Group (NYSE: ALK), and Delta Air Lines (NYSE: DAL) were each up about 5% or more. The Motley Fool owns shares of and recommends Delta Air Lines and Southwest Airlines. The Motley Fool recommends Alaska Air Group, Hawaiian Holdings, and JetBlue Airways.
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Shares of Southwest Airlines (NYSE: LUV), American Airlines Group (NASDAQ: AAL), Alaska Air Group (NYSE: ALK), and Delta Air Lines (NYSE: DAL) were each up about 5% or more. Shares of Allegiant Travel (NASDAQ: ALGT), United Airlines Holdings (NASDAQ: UAL) and JetBlue Airways (NASDAQ: JBLU) closed up more than 11%, with Hawaiian Holdings (NASDAQ: HA) up more than 9%. The Motley Fool owns shares of and recommends Delta Air Lines and Southwest Airlines.
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Shares of Southwest Airlines (NYSE: LUV), American Airlines Group (NASDAQ: AAL), Alaska Air Group (NYSE: ALK), and Delta Air Lines (NYSE: DAL) were each up about 5% or more. That's right -- they think these 10 stocks are even better buys. The Motley Fool owns shares of and recommends Delta Air Lines and Southwest Airlines.
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3dc9eb01-4df9-4153-a0a9-568d7041429b
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5907.0
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2020-05-08 00:00:00 UTC
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Why Boeing, Spirit AeroSystems, and American Airlines Stocks Rose Today
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AAL
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https://www.nasdaq.com/articles/why-boeing-spirit-aerosystems-and-american-airlines-stocks-rose-today-2020-05-08
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nan
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nan
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What happened
It's Friday, and the stock market is looking optimistic again, with the Dow, the Nasdaq, and the S&P 500 each up about 1.5% in midday trading.
What are the bulls snorting so happily about today? As The Wall Street Journal and Xinhua News Agency report, trade negotiators for the United States and China are restarting talks on implementing the Phase 1 trade deal that they signed in January. President Trump had previously threatened to end this deal, and continues to express some doubts about it. But the prospect that the two sides may be moving forward again, combined with reports that the U.S. economy is starting to reopen for business, appears to have investors feeling broadly optimistic today.
Shares of Boeing (NYSE: BA), responding positively to this news, were up about 3.3% as of 1:20 p.m. EDT on Friday. And the stock of Boeing supplier Spirit AeroSystems (NYSE: SPR) was up 8%, while Boeing customer American Airlines (NASDAQ: AAL) was up 3.6%.
Image source: Getty Images.
So what
But some of the enthusiasm we saw earlier in the day is fading. Just before noon today, the European Commission issued a recommendation to its member states that the temporary restriction on nonessential travel to the EU, which was due to expire on May 15, should be extended until June 15.
Phrased as an "invitation" rather than an order, the move is not binding. Still, one would assume that most EU states will err on the side of caution and extend the restriction as advised.
Now what
It's not hard to see what this means for the three companies above: fewer flights to and from Europe for American Airlines; less demand for new airplanes, and for maintenance services on existing airplanes, for Boeing; and fewer parts needed from Spirit AeroSystems.
Consequently, we're seeing all three stocks fade as the day progresses, and news of the EU's advice filters out into the market.
So what's the moral of this story? Certainly, the prospect of a trade agreement between the world's two leading economic powers is a reason for optimism, but the world today isn't what it was three or four months ago. With COVID-19 still rampant, and still affecting policies for entire economic regions, it's crucial that investors not take their eye off the ball.
The coronavirus, not a trade deal, is still the driving force behind stocks today. Until we get this disease licked, any gains our stock portfolios see have to be considered conditional.
10 stocks we like better than Boeing
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Boeing wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of April 16, 2020
Rich Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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And the stock of Boeing supplier Spirit AeroSystems (NYSE: SPR) was up 8%, while Boeing customer American Airlines (NASDAQ: AAL) was up 3.6%. But the prospect that the two sides may be moving forward again, combined with reports that the U.S. economy is starting to reopen for business, appears to have investors feeling broadly optimistic today. Just before noon today, the European Commission issued a recommendation to its member states that the temporary restriction on nonessential travel to the EU, which was due to expire on May 15, should be extended until June 15.
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And the stock of Boeing supplier Spirit AeroSystems (NYSE: SPR) was up 8%, while Boeing customer American Airlines (NASDAQ: AAL) was up 3.6%. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. See the 10 stocks *Stock Advisor returns as of April 16, 2020 Rich Smith has no position in any of the stocks mentioned.
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And the stock of Boeing supplier Spirit AeroSystems (NYSE: SPR) was up 8%, while Boeing customer American Airlines (NASDAQ: AAL) was up 3.6%. 10 stocks we like better than Boeing When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. See the 10 stocks *Stock Advisor returns as of April 16, 2020 Rich Smith has no position in any of the stocks mentioned.
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And the stock of Boeing supplier Spirit AeroSystems (NYSE: SPR) was up 8%, while Boeing customer American Airlines (NASDAQ: AAL) was up 3.6%. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. * David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Boeing wasn't one of them!
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02fc51e3-4efd-4edb-a987-7725c65d227b
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5908.0
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2020-05-07 00:00:00 UTC
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Chile´s top miners boost production in March -state copper agency
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AAL
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https://www.nasdaq.com/articles/chiles-top-miners-boost-production-in-march-state-copper-agency-2020-05-07-0
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nan
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nan
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Updates with additional production data, context
SANTIAGO, May 7 (Reuters) - Chile´s top copper mines ramped up production in March even as the coronavirus outbreak took hold, according to data released on Thursday by state copper agency Cochilco, boosted by a sharp spike in output from state miner Codelco.
Production at Codelco - the world's largest copper mining company - rose 14.8% year over year in March to 147,600 tonnes. Codelco´s output jumped 4.2% to 386,600 tons in the first quarter, Cochilco said.
BHP´s BHP.AX Escondida, the world´s largest copper mine, saw production in March climb 0.9% to 101,800 tons, the agency said.
The massive Collahuasi copper mine in northern Chile, a joint-venture between Anglo American AAL.L and Glencore GLEN.L, also saw its March production jump 6.8% over 2019 to 50,400.
Chile´s copper industry has maintained operations even as the coronavirus has ravaged the country´s economy and shut down many other non-essential businesses.
The plummeting global copper price, however, has slashed the value of that output, pressuring some small and medium-size miners.
Chile mining minister Baldo Prokurica said last week the government estimates a total reduction in output of only 63,300 tonnes, or approximately 1% of the country´s annual production.
Prokurica credited both public and private measures aimed at protecting workers with the industry´s resilience even as the virus has hit other parts of Chile´s economy.
(Reporting by Fabian Cambero and Dave Sherwood, editing by Chris Reese and 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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The massive Collahuasi copper mine in northern Chile, a joint-venture between Anglo American AAL.L and Glencore GLEN.L, also saw its March production jump 6.8% over 2019 to 50,400. Chile mining minister Baldo Prokurica said last week the government estimates a total reduction in output of only 63,300 tonnes, or approximately 1% of the country´s annual production. Prokurica credited both public and private measures aimed at protecting workers with the industry´s resilience even as the virus has hit other parts of Chile´s economy.
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The massive Collahuasi copper mine in northern Chile, a joint-venture between Anglo American AAL.L and Glencore GLEN.L, also saw its March production jump 6.8% over 2019 to 50,400. Updates with additional production data, context SANTIAGO, May 7 (Reuters) - Chile´s top copper mines ramped up production in March even as the coronavirus outbreak took hold, according to data released on Thursday by state copper agency Cochilco, boosted by a sharp spike in output from state miner Codelco. Production at Codelco - the world's largest copper mining company - rose 14.8% year over year in March to 147,600 tonnes.
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The massive Collahuasi copper mine in northern Chile, a joint-venture between Anglo American AAL.L and Glencore GLEN.L, also saw its March production jump 6.8% over 2019 to 50,400. Updates with additional production data, context SANTIAGO, May 7 (Reuters) - Chile´s top copper mines ramped up production in March even as the coronavirus outbreak took hold, according to data released on Thursday by state copper agency Cochilco, boosted by a sharp spike in output from state miner Codelco. Production at Codelco - the world's largest copper mining company - rose 14.8% year over year in March to 147,600 tonnes.
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The massive Collahuasi copper mine in northern Chile, a joint-venture between Anglo American AAL.L and Glencore GLEN.L, also saw its March production jump 6.8% over 2019 to 50,400. Codelco´s output jumped 4.2% to 386,600 tons in the first quarter, Cochilco said. BHP´s BHP.AX Escondida, the world´s largest copper mine, saw production in March climb 0.9% to 101,800 tons, the agency said.
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449445a9-6355-4c91-9d72-2f0aa10c6f16
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5909.0
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2020-05-07 00:00:00 UTC
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Chile´s top miners boost production in March -state copper agency
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AAL
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https://www.nasdaq.com/articles/chiles-top-miners-boost-production-in-march-state-copper-agency-2020-05-07
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nan
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nan
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SANTIAGO, May 7 (Reuters) - Chile´s top copper mines ramped up production in March amid the coronavirus outbreak, according to data released on Thursday by state copper agency Cochilco, led by a sharp increase in output by state miner Codelco.
Production at Codelco - the world's largest copper miner - rose 14.8% year over year to 147,600 tonnes. Codelco´s output jumped 4.2% to 386,600 tons in the first quarter, Cochilco said.
(Reporting by Fabian Cambero, writing by Dave Sherwood, editing by Chris Reese)
((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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SANTIAGO, May 7 (Reuters) - Chile´s top copper mines ramped up production in March amid the coronavirus outbreak, according to data released on Thursday by state copper agency Cochilco, led by a sharp increase in output by state miner Codelco. Codelco´s output jumped 4.2% to 386,600 tons in the first quarter, Cochilco said. (Reporting by Fabian Cambero, writing by Dave Sherwood, editing by Chris Reese) ((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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SANTIAGO, May 7 (Reuters) - Chile´s top copper mines ramped up production in March amid the coronavirus outbreak, according to data released on Thursday by state copper agency Cochilco, led by a sharp increase in output by state miner Codelco. Production at Codelco - the world's largest copper miner - rose 14.8% year over year to 147,600 tonnes. (Reporting by Fabian Cambero, writing by Dave Sherwood, editing by Chris Reese) ((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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SANTIAGO, May 7 (Reuters) - Chile´s top copper mines ramped up production in March amid the coronavirus outbreak, according to data released on Thursday by state copper agency Cochilco, led by a sharp increase in output by state miner Codelco. Production at Codelco - the world's largest copper miner - rose 14.8% year over year to 147,600 tonnes. (Reporting by Fabian Cambero, writing by Dave Sherwood, editing by Chris Reese) ((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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SANTIAGO, May 7 (Reuters) - Chile´s top copper mines ramped up production in March amid the coronavirus outbreak, according to data released on Thursday by state copper agency Cochilco, led by a sharp increase in output by state miner Codelco. Production at Codelco - the world's largest copper miner - rose 14.8% year over year to 147,600 tonnes. Codelco´s output jumped 4.2% to 386,600 tons in the first quarter, Cochilco said.
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477f3412-6158-4bad-9b30-181ca4bdbf56
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5910.0
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2020-05-07 00:00:00 UTC
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American Airlines: Warren Buffett Is Not Always Right
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AAL
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https://www.nasdaq.com/articles/american-airlines%3A-warren-buffett-is-not-always-right-2020-05-07
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nan
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nan
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While Warren Buffett abandoned the airlines, the numbers don’t support abandoning the sector or American Airlines (AAL). The stock trades at the lows despite strong government aid and plenty of financial liquidity to survive the depressed air travel in the U.S.
The market is focused on some of the negative headlines, but daily air passenger totals are starting to make a nice rebound. The ultimate value of an airline stock or American Airlines in general is based on the willingness of passengers to return to the skies. With the proper focus, investors will find the prospects for American Airlines heading higher.
According to TipRanks, the consensus on Wall Street is that American Airlines stock is a “sell” for investors. But TipRanks might as well have said “buy” — because analysts, on average, think the stock, currently at $9.25, could zoom ahead to $13.82 within a year, delivering 50% profits to new investors.
Buffett Versus Passengers
Over the weekend, Warren Buffett disclosed that Berkshire Hathaway had unloaded positions in the four major airlines with a total value once topping $10 billion. At the same time, the TSA checkpoint traveler totals are surging over 30% on a weekly basis.
The passenger traffic levels are still down about 93% from 2019 levels, but the daily numbers have doubled off the lows already with 170K passengers flying over the weekend. At the same time, Buffett sold airline stocks at the lows during April as if passenger traffic wouldn’t rebound. His message to bet on America would seem to apply strongly to American Airlines and other legacy airline stocks of Delta Air Lines (DAL), United Airlines (UAL) and Southwest Airlines (LUV) sold by Berkshire Hathaway.
Plenty Of Liquidity
American Airlines ended Q1 with $6.8 billion of available liquidity and has access to another $10.6 billion from the U.S. Treasury via the CARES Act. The airline has already agreed to the deal for the Payroll Support Program which includes $4.1 billion via a grant and another $1.7 billion via a low-cost loan. The additional $4.75 billion secured loan is still in negotiations based on determining the assets to secure the loan.
The biggest question is how quickly passenger traffic can grow to cut the current daily cash burn rates. American Airlines was burning $70 million daily on a path to $50 million by the end of the June.
The misleading aspect here is the $4.1 billion grant portion of the CARES Act. The grant requires the airline to keep a higher payroll cost where the airline would actually would currently have much lower costs, if not for this government move.
Once factoring in this grant to cover daily payroll costs, American Airlines would only have a daily cash burn below $30 million by the end of June. In addition, the airline isn’t even factoring in a revenue boost from the higher revenues from a rebound in passenger demand which wasn’t factored into the daily cash burn estimates.
Just a return to revenues in the 20% to 30% levels quickly reduces the daily cash burn levels to negligible amounts.
Takeaway
The key investor takeaway is that American Airlines stock still remains in a risky position until bookings start reaching much higher levels than 7% of previous capacity. Buffett selling airlines at a loss doesn’t alter my bullish view on the sector.
The airline sector was highly profitable prior to the virus outbreak and American Airlines trades at 2x previous EPS. Even a hit to share dilution and higher interest expenses don't alter the valuation equation much with the stock below $10.
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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While Warren Buffett abandoned the airlines, the numbers don’t support abandoning the sector or American Airlines (AAL). The stock trades at the lows despite strong government aid and plenty of financial liquidity to survive the depressed air travel in the U.S. The market is focused on some of the negative headlines, but daily air passenger totals are starting to make a nice rebound.
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While Warren Buffett abandoned the airlines, the numbers don’t support abandoning the sector or American Airlines (AAL). His message to bet on America would seem to apply strongly to American Airlines and other legacy airline stocks of Delta Air Lines (DAL), United Airlines (UAL) and Southwest Airlines (LUV) sold by Berkshire Hathaway. Just a return to revenues in the 20% to 30% levels quickly reduces the daily cash burn levels to negligible amounts.
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While Warren Buffett abandoned the airlines, the numbers don’t support abandoning the sector or American Airlines (AAL). The ultimate value of an airline stock or American Airlines in general is based on the willingness of passengers to return to the skies. His message to bet on America would seem to apply strongly to American Airlines and other legacy airline stocks of Delta Air Lines (DAL), United Airlines (UAL) and Southwest Airlines (LUV) sold by Berkshire Hathaway.
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While Warren Buffett abandoned the airlines, the numbers don’t support abandoning the sector or American Airlines (AAL). At the same time, Buffett sold airline stocks at the lows during April as if passenger traffic wouldn’t rebound. The airline has already agreed to the deal for the Payroll Support Program which includes $4.1 billion via a grant and another $1.7 billion via a low-cost loan.
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35cd19f4-6d1c-4698-9c16-d69bdd527d80
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5911.0
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2020-05-07 00:00:00 UTC
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Is Delta Air Lines Stock a Buy?
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AAL
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https://www.nasdaq.com/articles/is-delta-air-lines-stock-a-buy-2020-05-07
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nan
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nan
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On Monday, Delta Air Lines (NYSE: DAL) fell within striking distance of its 52-week low after Warren Buffett announced the sale of Berkshire Hathaway's (NYSE: BRK.A) (NYSE: BRK.B) entire stakes in Delta, Southwest Airlines (NYSE: LUV), American Airlines Group (NASDAQ: AAL), and United Airlines Holdings (NASDAQ: UAL).
Should you sell too, or are Delta shares a buy at this reduced price?
Image source: Delta Air Lines.
A misleading headline
Flashed across business and finance news outlets on Monday was the headline that Warren Buffett sold all his airline stocks. Although some outlets are guiltier than others with their packaging of this news, the headline could easily be misinterpreted as saying that Buffett sold all his airline stocks in one fell swoop or in a day or two, when in reality, the sale occurred gradually over the month of April. In fact, Buffett had already announced his sale of large portions of Southwest and Delta in early April. The Monday headline is certainly not good news, but it's also not as dramatic as it seems.
Buffett's take on the airlines
The Berkshire Hathaway Annual Shareholders Meeting typically attracts tens of thousands of visitors from around the world to Omaha, Nebraska to share in the wisdom of Warren Buffett. Held virtually this year, it was one of the most important events of the weekend as investors and admirers waited with bated breath to listen to the Oracle of Omaha's first public remarks since the onset of the COVID-19 (coronavirus) pandemic.
"I hope I'm wrong," said Buffett when discussing Berkshire's airline purge. His melancholy tone reflected his sympathy for the industry. "The future is much less clear to me how the business will turn out for absolutely no fault of the airlines themselves."
Warren Buffett was a longtime critic of the cyclical nature and capital intensity of airlines. That changed in 2016 when Berkshire purchased shares of four major airlines, one of which was Delta. Buffett then added more than five million Delta shares in 2019.
During the meeting, Buffett pointed out uncertainties that many travelers and investors are already thinking, namely that public perception has changed and people will fly less in the coming years. He also noted the oversupply and over-ordering of aircraft by major airlines, which seemed logical at the time but now is simply another weight on the industry's wavering shoulders.
The Delta difference
A bit shocking to me and other Fools was Buffett's full-on eradication of Berkshire's entire airline position, including stronger airlines like Delta and Southwest.
Delta was arguably the best airline going into 2020. 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 has been the elite cash cow of the industry.
DAL Net Income (TTM) data by YCharts
But as Buffett pointed out, times have changed for the airlines. Now, it's all about financial strength and an airline's ability to survive this crisis, which means determining if an airline has too much debt or is overly leveraged.
DAL Debt To Capital (Quarterly) data by YCharts
Although it's not as solid as Southwest, Delta is getting a boost 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 waiting game
Delta is an interesting airline stock because it doesn't have the best balance sheet, but it has arguably the most upside if airline traffic improves over the coming quarters.
For now, Delta can do little more than wait. According to Delta's first-quarter 2020 earnings release, the company expects June revenues to be down "90% compared to a year ago." The company is "parking more than 650 aircraft," and is "instituting a companywide hiring freeze and offering voluntary leave options with 37,000 employees taking short-term unpaid leave."
Like all airlines, Delta will likely continue to struggle as preferences change toward flying. An investment in Delta is essentially a bet that the economy will slowly heal and people will once again be taking to the skies for business and personal trips. One of my biggest fears is that the widespread adoption of virtual meetings could lead to a paradigm shift that makes it difficult to justify face-to-face business meetings from a cost perspective. The fewer in-person meetings, site visits, plant visits, industry conferences, etc., there are, the less revenue there will be for the airline industry.
Survival of the fittest
This paradigm shift aside, Delta is one of the best U.S. airlines and has a proven track record of strong earnings and cash flow. The suspension of the company's dividend and government aid are necessary measures to give the company as much cash as possible. Delta is flying straight into a series of headwinds that will test the company's resilience to its core. With the stock down over 60% in 2020, I think a long-term investment in Delta is wise if the assumption is made that a rebound could take years. That being said, investors can take solace in knowing that Delta is one of the best-positioned airlines in a war of attrition where only the fittest airlines survive.
10 stocks we like better than Delta Air Lines
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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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On Monday, Delta Air Lines (NYSE: DAL) fell within striking distance of its 52-week low after Warren Buffett announced the sale of Berkshire Hathaway's (NYSE: BRK.A) (NYSE: BRK.B) entire stakes in Delta, Southwest Airlines (NYSE: LUV), American Airlines Group (NASDAQ: AAL), and United Airlines Holdings (NASDAQ: UAL). Although some outlets are guiltier than others with their packaging of this news, the headline could easily be misinterpreted as saying that Buffett sold all his airline stocks in one fell swoop or in a day or two, when in reality, the sale occurred gradually over the month of April. Held virtually this year, it was one of the most important events of the weekend as investors and admirers waited with bated breath to listen to the Oracle of Omaha's first public remarks since the onset of the COVID-19 (coronavirus) pandemic.
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On Monday, Delta Air Lines (NYSE: DAL) fell within striking distance of its 52-week low after Warren Buffett announced the sale of Berkshire Hathaway's (NYSE: BRK.A) (NYSE: BRK.B) entire stakes in Delta, Southwest Airlines (NYSE: LUV), American Airlines Group (NASDAQ: AAL), and United Airlines Holdings (NASDAQ: UAL). 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.
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On Monday, Delta Air Lines (NYSE: DAL) fell within striking distance of its 52-week low after Warren Buffett announced the sale of Berkshire Hathaway's (NYSE: BRK.A) (NYSE: BRK.B) entire stakes in Delta, Southwest Airlines (NYSE: LUV), American Airlines Group (NASDAQ: AAL), and United Airlines Holdings (NASDAQ: UAL). The Delta difference A bit shocking to me and other Fools was Buffett's full-on eradication of Berkshire's entire airline position, including stronger airlines like Delta and Southwest. 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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On Monday, Delta Air Lines (NYSE: DAL) fell within striking distance of its 52-week low after Warren Buffett announced the sale of Berkshire Hathaway's (NYSE: BRK.A) (NYSE: BRK.B) entire stakes in Delta, Southwest Airlines (NYSE: LUV), American Airlines Group (NASDAQ: AAL), and United Airlines Holdings (NASDAQ: UAL). That changed in 2016 when Berkshire purchased shares of four major airlines, one of which was Delta. 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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2020-05-07 00:00:00 UTC
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It’s Not Time to Jump Back Into Delta Airlines Just Yet
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AAL
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https://www.nasdaq.com/articles/its-not-time-to-jump-back-into-delta-airlines-just-yet-2020-05-07
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
It’s not time to rush back into airline stocks just yet. And that includes Delta Air Lines (NYSE:DAL) stock.
Source: VanderWolf Images/Shutterstock.com
While most have become decimated “blood in the street” opportunities, we first need to see a successful reopening of the U.S. economy, and signs of life in the travel industry.
Until that happens, there’s no reason to venture in.
Not even a $50 bailout was enough to keep investors interested, including billionaire Warren Buffett, who just sold all of his airline holdings. In fact, at the latest Berkshire Hathaway (NYSE:BRK.A,NYSE:BRK.B) meeting, he noted the firm sold all of its airline stocks including Delta, American Airlines (NASDAQ:AAL), United Airlines (NASDAQ:UAL), and Southwest Airlines (NYSE:LUV).
However, once the smoke clears, I strongly believe DAL is the stock to own. Not only is it one of the most profitable airlines in the world, it’s an industry leader. While it’s not time to jump back into the DAL stock just yet, I believe the stock could fly back to $58 a share with a good deal of patience, and a return to normalcy.
Delta is Prepared for the Future
Like most airlines, Delta isn’t out of harm’s way just yet.
The airline lost $534 million in the first three months of 2020 – its first quarterly loss in more than five years. Excluding special items, the loss $326 million, as compared to a year-earlier profit of $639 million. Revenue fell $1.9 billion.
That’s not really a big surprise, though. Plus, the company is preparing for the rest of the year. For one, through the federal CARES Act, it secured $5.4 billion in relief funding. That consists of payroll support of $5.4 billion, including a $1.6 billion low-interest, unsecured 10-year loan.
Delta already has nearly $3 billion of that in hand and expects to get the rest by August.
In addition, according to company CFO Paul Jacobson, “With the significant impact of Covid-19 on Delta’s revenue, we were burning $100 million per day at the end of March. Through our decisive actions, we expect that cash burn to moderate to approximately $50 million per day by the end of the June quarter.”
Warren Buffett May Have Sold Airlines Too Early
While I’m not going to question Warren Buffett’s decision to sell DAL stock and his other airlines, I think he sold far too early. In fact, selling airlines may go against his very investment mantra.
Remember, this is the billionaire that made fortunes from telling us a “climate of fear is your friend when investing; a euphoric world is your enemy.” And of course, we all remember his advice to “be fearful when others are greedy and greedy when others are fearful.”
With all due respect, by selling airlines, Buffett sold out of fear. Here’s his reasoning:
“I was wrong about that business because of something that was not in any way the fault of four excellent CEOs … The airline business, and I may be wrong and I hope I’m wrong, I think it changed in a very major way and it’s obviously changed in the fact that their four companies are each going to borrow perhaps average of at least $10 or $12 billion each.”
Remember, as we also learned over the years, Baron Rothschild would tell investors, “The time to buy is when there’s blood in the streets, even if the blood is your own.”
Even Sir John Templeton would tell investors to buy excessive pessimism, which we see now.
There Are Signs of Recovery for Airlines
“There are ‘flickers of hope’ that demand has bottomed, according to Raymond James analyst Savanthi Syth. Data from the Transportation Security Administration indicated a slight uptick in travelers passing through checkpoints on May 1, going to a 93% year-over-year decline from a low 96% in mid-April,” as reported by Barron’s contributor Daren Fonda.
Even Southwest CEO Gary Kelly recently told “Face the Nation” that it’s safe to fly again. “I don’t think the risk on an airplane is any greater risk than anywhere else,” adding, “I think we’ve seen the bottom here in April. Each week after the first week of April has gotten successively better. I think May will be better than April was. I don’t think June will be a good month, but hopefully it will be a bit better than May.”
The Transportation Security Administration screened 154,695 people as of last week, despite travel restrictions, says Fox Business contributor Audrey Conklin. That’s up from 87,534 screened on April 14. While that’s wildly lower historically, we’re seeing progress.
That doesn’t mean investors should run out and buy airline stocks again just yet. However, once we begin to see further signs of recovery, I’m a buyer on the excessive fear. Perhaps Warren Buffett will invest in them again soon, too.
Ian Cooper, an InvestorPlace.com contributor, has been analyzing stocks and options for web-based advisories since 1999. As of this writing, he did not hold a position in any of the aforementioned securities.
The post It’s Not Time to Jump Back Into Delta Airlines 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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In fact, at the latest Berkshire Hathaway (NYSE:BRK.A,NYSE:BRK.B) meeting, he noted the firm sold all of its airline stocks including Delta, American Airlines (NASDAQ:AAL), United Airlines (NASDAQ:UAL), and Southwest Airlines (NYSE:LUV). In addition, according to company CFO Paul Jacobson, “With the significant impact of Covid-19 on Delta’s revenue, we were burning $100 million per day at the end of March. Data from the Transportation Security Administration indicated a slight uptick in travelers passing through checkpoints on May 1, going to a 93% year-over-year decline from a low 96% in mid-April,” as reported by Barron’s contributor Daren Fonda.
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In fact, at the latest Berkshire Hathaway (NYSE:BRK.A,NYSE:BRK.B) meeting, he noted the firm sold all of its airline stocks including Delta, American Airlines (NASDAQ:AAL), United Airlines (NASDAQ:UAL), and Southwest Airlines (NYSE:LUV). Not even a $50 bailout was enough to keep investors interested, including billionaire Warren Buffett, who just sold all of his airline holdings. Through our decisive actions, we expect that cash burn to moderate to approximately $50 million per day by the end of the June quarter.” Warren Buffett May Have Sold Airlines Too Early While I’m not going to question Warren Buffett’s decision to sell DAL stock and his other airlines, I think he sold far too early.
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In fact, at the latest Berkshire Hathaway (NYSE:BRK.A,NYSE:BRK.B) meeting, he noted the firm sold all of its airline stocks including Delta, American Airlines (NASDAQ:AAL), United Airlines (NASDAQ:UAL), and Southwest Airlines (NYSE:LUV). Through our decisive actions, we expect that cash burn to moderate to approximately $50 million per day by the end of the June quarter.” Warren Buffett May Have Sold Airlines Too Early While I’m not going to question Warren Buffett’s decision to sell DAL stock and his other airlines, I think he sold far too early. Here’s his reasoning: “I was wrong about that business because of something that was not in any way the fault of four excellent CEOs … The airline business, and I may be wrong and I hope I’m wrong, I think it changed in a very major way and it’s obviously changed in the fact that their four companies are each going to borrow perhaps average of at least $10 or $12 billion each.” Remember, as we also learned over the years, Baron Rothschild would tell investors, “The time to buy is when there’s blood in the streets, even if the blood is your own.” Even Sir John Templeton would tell investors to buy excessive pessimism, which we see now.
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In fact, at the latest Berkshire Hathaway (NYSE:BRK.A,NYSE:BRK.B) meeting, he noted the firm sold all of its airline stocks including Delta, American Airlines (NASDAQ:AAL), United Airlines (NASDAQ:UAL), and Southwest Airlines (NYSE:LUV). Not even a $50 bailout was enough to keep investors interested, including billionaire Warren Buffett, who just sold all of his airline holdings. Plus, the company is preparing for the rest of the year.
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2020-05-07 00:00:00 UTC
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5 Stocks Warren Buffett Has Sold in 2020
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AAL
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https://www.nasdaq.com/articles/5-stocks-warren-buffett-has-sold-in-2020-2020-05-07
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When Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) CEO Warren Buffett speaks, Wall Street tends to play close attention. That's the respect commanded for an investor who has trounced the returns of the broad-based S&P 500 (including dividends) by more than 2,744,000% over the past 55 years.
This past weekend, Berkshire Hathaway released its first-quarter operating results and virtually hosted its annual shareholder meeting due to the coronavirus disease 2019 (COVID-19). While there were numerous nuggets of wisdom bestowed by the Oracle of Omaha on listeners regarding the long-term view on the U.S. economy and stock market, what investors were really hoping for was direct insight into what Buffett has been buying and selling during this abrupt bear market crash.
Image source: Getty Images.
Interestingly, based on figures from the company's first-quarter report and a slide provided by Buffett during the virtual shareholder meeting, we learned that Berkshire Hathaway has been a net seller of equities since the year began. Though Buffett and his team bought $1.8 billion more than was sold in Q1 2020, Berkshire was a net seller to the tune of almost $6.1 billion in April.
What's Buffett been selling? While we won't know the complete answer to this question until Berkshire Hathaway files its 13F with the Securities and Exchange Commission (SEC) next week, we do know from verbal disclosures and SEC filings that Buffett and his team have sold five stocks thus far in 2020.
Buffett's airline holdings are grounded
If there was a "wow" moment of the Berkshire Hathaway annual meeting, it was early on in the question-and-answer portion of the meeting, when Buffett confirmed that the company had completely sold out of its positions in all four major airlines. This involved selling:
71,886,963 shares of Delta Air Lines (NYSE: DAL)
53,649,213 shares of Southwest Airlines (NYSE: LUV)
42,500,000 shares of American Airlines Group (NASDAQ: AAL)
21,938,642 shares of United Airlines (NASDAQ: UAL)
According to Buffett and the slide detailing Berkshire's net-selling activity during April, the company redeemed about $6.1 billion from its stakes in these four airlines. Unfortunately for Buffett, his initial investment in these airlines totaled in the neighborhood of $8 billion. Buffett described his decision to invest in the airline industry as a "mistake."
Image source: Getty Images.
Though Buffett firmly believes in taking the long view when it comes to investing, the decision to sell was made easy by COVID-19. The Oracle of Omaha believes the airline industry will be fundamentally changed by this pandemic and cited a number of concerns regarding near-term and intermediate-term growth. For instance, Buffett wasn't sure if and when the number of passengers flying would return to normal, suggesting it could take many years. All the while, new plane orders from the likes of American and Delta will create a glut of aircraft.
He also highlighted the likelihood of each airline borrowing an estimated $10 billion to $12 billion that would need to eventually be paid back. These borrowings, in Buffett's mind, would eat away at the quality of airlines' earnings for the foreseeable future.
What might be overlooked among all of this is the leverage of certain airline stocks. For example, Southwest Airlines went into the coronavirus pandemic with a relatively sound balance sheet that featured $5.6 billion in cash and $6.4 billion in debt. Comparatively, American Airlines, United, and Delta were sporting net-debt positions of $30.5 billion, $18.2 billion, and $18.1 billion, respectively. They simply weren't prepared to survive an exogenous shock, which is exactly why I've always questioned Buffett's attraction to airlines.
An interest-sensitive bank is trimmed
In addition to selling off all of his airline stocks, Buffett's company filed paperwork with the SEC showing that, on April 7 and April 8, a grand total of 869,103 shares of Bank of New York Mellon (NYSE: BK) were sold, which equates to almost 1% of the 89 million shares that were held at the beginning of the year.
Buffett is a big fan of the financial sector and bank stocks, which he made clear during his shareholder meeting. He also firmly believes in betting on America over the long run. That would make banks a great place to park your capital for long periods of time.
Image source: Getty Images.
However, Bank of NY Mellon isn't a traditional bank. Rather, it's the nation's largest custodial bank that also offers various investment management and investment strategy services. This means Bank of NY Mellon's operating performance tends to ebb and flow with prevailing interest rates. Since the Federal Reserve moved its federal funds rate back to an all-time low of 0% to 0.25% earlier this year, Bank of New York Mellon is likely to see less in the way of net interest income for the foreseeable future. That means less of an opportunity for the company to grow its dividend, which is the dangling carrot that attracts most investors.
But the biggest reason Buffett may have been a seller likely has to do with Bank of New York Mellon's aggressive common stock repurchase program. Last June, BNY Mellon's board approved up to $3.94 billion in share repurchases through the second quarter of 2020. As the number of outstanding shares decreases, Berkshire's ownership stake in the company increased past 10%. Owning more than 10% of a financial institution can lead to increased oversight from the Fed.
Thus, Buffett's sale of Bank of NY Mellon stock looks to be motivated more by regulatory concerns than anything fundamentally wrong with the business.
10 stocks we like better than The Bank of New York Mellon Corporation
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and The Bank of New York Mellon Corporation 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
Sean Williams has no position in any of the stocks mentioned. 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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This involved selling: 71,886,963 shares of Delta Air Lines (NYSE: DAL) 53,649,213 shares of Southwest Airlines (NYSE: LUV) 42,500,000 shares of American Airlines Group (NASDAQ: AAL) 21,938,642 shares of United Airlines (NASDAQ: UAL) According to Buffett and the slide detailing Berkshire's net-selling activity during April, the company redeemed about $6.1 billion from its stakes in these four airlines. This past weekend, Berkshire Hathaway released its first-quarter operating results and virtually hosted its annual shareholder meeting due to the coronavirus disease 2019 (COVID-19). Interestingly, based on figures from the company's first-quarter report and a slide provided by Buffett during the virtual shareholder meeting, we learned that Berkshire Hathaway has been a net seller of equities since the year began.
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This involved selling: 71,886,963 shares of Delta Air Lines (NYSE: DAL) 53,649,213 shares of Southwest Airlines (NYSE: LUV) 42,500,000 shares of American Airlines Group (NASDAQ: AAL) 21,938,642 shares of United Airlines (NASDAQ: UAL) According to Buffett and the slide detailing Berkshire's net-selling activity during April, the company redeemed about $6.1 billion from its stakes in these four airlines. An interest-sensitive bank is trimmed In addition to selling off all of his airline stocks, Buffett's company filed paperwork with the SEC showing that, on April 7 and April 8, a grand total of 869,103 shares of Bank of New York Mellon (NYSE: BK) were sold, which equates to almost 1% of the 89 million shares that were held at the beginning of the year. 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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This involved selling: 71,886,963 shares of Delta Air Lines (NYSE: DAL) 53,649,213 shares of Southwest Airlines (NYSE: LUV) 42,500,000 shares of American Airlines Group (NASDAQ: AAL) 21,938,642 shares of United Airlines (NASDAQ: UAL) According to Buffett and the slide detailing Berkshire's net-selling activity during April, the company redeemed about $6.1 billion from its stakes in these four airlines. An interest-sensitive bank is trimmed In addition to selling off all of his airline stocks, Buffett's company filed paperwork with the SEC showing that, on April 7 and April 8, a grand total of 869,103 shares of Bank of New York Mellon (NYSE: BK) were sold, which equates to almost 1% of the 89 million shares that were held at the beginning of the year. 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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This involved selling: 71,886,963 shares of Delta Air Lines (NYSE: DAL) 53,649,213 shares of Southwest Airlines (NYSE: LUV) 42,500,000 shares of American Airlines Group (NASDAQ: AAL) 21,938,642 shares of United Airlines (NASDAQ: UAL) According to Buffett and the slide detailing Berkshire's net-selling activity during April, the company redeemed about $6.1 billion from its stakes in these four airlines. Though Buffett firmly believes in taking the long view when it comes to investing, the decision to sell was made easy by COVID-19. An interest-sensitive bank is trimmed In addition to selling off all of his airline stocks, Buffett's company filed paperwork with the SEC showing that, on April 7 and April 8, a grand total of 869,103 shares of Bank of New York Mellon (NYSE: BK) were sold, which equates to almost 1% of the 89 million shares that were held at the beginning of the year.
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2020-05-07 00:00:00 UTC
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Anglo American considers spinning off South African coal operations
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AAL
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https://www.nasdaq.com/articles/anglo-american-considers-spinning-off-south-african-coal-operations-2020-05-07
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nan
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Updates with detail
LONDON, May 7 (Reuters) - Diversified miner Anglo American AAL.L said on Thursday it prefers unbundling and listing its thermal coal operations in South Africa in the next two to three years over other options for exiting the business.
Increasing pressure from investors, regulators and climate change activists is prompting miners to limit their exposure to fossil fuels.
In written responses to shareholders, Anglo said a demerger was its preferred method of withdrawing from the business, but that it was still considering other possibilities.
"We are... working towards a possible demerger of our thermal coal operations in South Africa as our likely preferred exit option, expected in the next two to three years," the miner said, adding a listing in Johannesburg would be likely.
Anglo said it had halved production of thermal coal since 2015 after it sold some mines in South Africa and Australia.
In February, Anglo said it had received interest from potential buyers for the coal assets.
The miner, which produces copper, diamonds and platinum group metals, said its increasing focus on commodities with a greener slant, such as those used for electrification, meant the coal assets would be better served under different owners.
(Reporting by Zandi Shabalala; Editing by Jan Harvey)
((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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Updates with detail LONDON, May 7 (Reuters) - Diversified miner Anglo American AAL.L said on Thursday it prefers unbundling and listing its thermal coal operations in South Africa in the next two to three years over other options for exiting the business. "We are... working towards a possible demerger of our thermal coal operations in South Africa as our likely preferred exit option, expected in the next two to three years," the miner said, adding a listing in Johannesburg would be likely. The miner, which produces copper, diamonds and platinum group metals, said its increasing focus on commodities with a greener slant, such as those used for electrification, meant the coal assets would be better served under different owners.
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Updates with detail LONDON, May 7 (Reuters) - Diversified miner Anglo American AAL.L said on Thursday it prefers unbundling and listing its thermal coal operations in South Africa in the next two to three years over other options for exiting the business. "We are... working towards a possible demerger of our thermal coal operations in South Africa as our likely preferred exit option, expected in the next two to three years," the miner said, adding a listing in Johannesburg would be likely. Anglo said it had halved production of thermal coal since 2015 after it sold some mines in South Africa and Australia.
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Updates with detail LONDON, May 7 (Reuters) - Diversified miner Anglo American AAL.L said on Thursday it prefers unbundling and listing its thermal coal operations in South Africa in the next two to three years over other options for exiting the business. "We are... working towards a possible demerger of our thermal coal operations in South Africa as our likely preferred exit option, expected in the next two to three years," the miner said, adding a listing in Johannesburg would be likely. (Reporting by Zandi Shabalala; Editing by Jan Harvey) ((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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Updates with detail LONDON, May 7 (Reuters) - Diversified miner Anglo American AAL.L said on Thursday it prefers unbundling and listing its thermal coal operations in South Africa in the next two to three years over other options for exiting the business. Increasing pressure from investors, regulators and climate change activists is prompting miners to limit their exposure to fossil fuels. In written responses to shareholders, Anglo said a demerger was its preferred method of withdrawing from the business, but that it was still considering other possibilities.
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2020-05-06 00:00:00 UTC
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U.S. airports need $10 billion or more in additional government aid - group
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https://www.nasdaq.com/articles/u.s.-airports-need-%2410-billion-or-more-in-additional-government-aid-group-2020-05-06-0
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By David Shepardson
WASHINGTON, May 6 (Reuters) - U.S. airports will need at least another $10 billion in government assistance as they face mounting losses from the near-collapse of air travel due to the coronavirus pandemic, a major airport group told a U.S. Senate committee Wednesday.
Todd Hauptli, who heads the American Association of Airport Executives, noted that Congress previously gave airports $10 billion in emergency aid. In addition to at least another $10 billion for passenger airports, "Congress must provide billions of dollars in financial support for other parts of the aviation ecosystem" and greater support for smaller general aviation airports and other airport partners, he said.
"We're going to have to get past the sticker shock and get to yes," Hauptli said.
Separately, a major airline trade group said the industry is not seeking additional government assistance and airlines hope not to have to return to Congress seeking more money later this year.
U.S. airports collectively held $100 billion in debt at the end of 2018 and some previously warned they might not be able to make debt payments without the initial $10 billion.
U.S. passenger air travel is down 95% and airlines have canceled 80% or more of flights into June.
Congress has already approved more than $50 billion in emergency assistance for other parts of the U.S. transit network harmed by the travel decline, including $25 billion for mass transit agencies, $25 billion in cash grants for U.S. airlines, $1 billion for passenger railroad Amtrak and the $10 billion for airports.
Airlines are burning at least $10 billion a month, the head of a trade group representing American Airlines Group Inc AAL.O, United Airlines UAL.O, Southwest Airlines LUV.N and others said.
Nicholas Calio, president and chief executive of Airlines for America, told the panel that if the industry was forced to refund too many tickets it could lead to bankruptcies.
Senator Richard Blumenthal, a Democrat, criticized airlines for not disclosing the ability of consumers to get refunds for some flights and instead encouraging them to take credits.
"You are screwing the very taxpayers whose money is going into your pocket," Blumenthal said. "You are killing the goose that lays the golden egg."
Calio said airlines do not want to return to Congress and ask for more money later this year.
(Reporting by David Shepardson; additional reporting by Tracy Rucinski; Editing by Chizu Nomiyama and 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 are burning at least $10 billion a month, the head of a trade group representing American Airlines Group Inc AAL.O, United Airlines UAL.O, Southwest Airlines LUV.N and others said. By David Shepardson WASHINGTON, May 6 (Reuters) - U.S. airports will need at least another $10 billion in government assistance as they face mounting losses from the near-collapse of air travel due to the coronavirus pandemic, a major airport group told a U.S. Senate committee Wednesday. Nicholas Calio, president and chief executive of Airlines for America, told the panel that if the industry was forced to refund too many tickets it could lead to bankruptcies.
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Airlines are burning at least $10 billion a month, the head of a trade group representing American Airlines Group Inc AAL.O, United Airlines UAL.O, Southwest Airlines LUV.N and others said. Todd Hauptli, who heads the American Association of Airport Executives, noted that Congress previously gave airports $10 billion in emergency aid. Separately, a major airline trade group said the industry is not seeking additional government assistance and airlines hope not to have to return to Congress seeking more money later this year.
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Airlines are burning at least $10 billion a month, the head of a trade group representing American Airlines Group Inc AAL.O, United Airlines UAL.O, Southwest Airlines LUV.N and others said. In addition to at least another $10 billion for passenger airports, "Congress must provide billions of dollars in financial support for other parts of the aviation ecosystem" and greater support for smaller general aviation airports and other airport partners, he said. Congress has already approved more than $50 billion in emergency assistance for other parts of the U.S. transit network harmed by the travel decline, including $25 billion for mass transit agencies, $25 billion in cash grants for U.S. airlines, $1 billion for passenger railroad Amtrak and the $10 billion for airports.
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Airlines are burning at least $10 billion a month, the head of a trade group representing American Airlines Group Inc AAL.O, United Airlines UAL.O, Southwest Airlines LUV.N and others said. Todd Hauptli, who heads the American Association of Airport Executives, noted that Congress previously gave airports $10 billion in emergency aid. Congress has already approved more than $50 billion in emergency assistance for other parts of the U.S. transit network harmed by the travel decline, including $25 billion for mass transit agencies, $25 billion in cash grants for U.S. airlines, $1 billion for passenger railroad Amtrak and the $10 billion for airports.
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a84b064a-4c48-41e9-8fc1-0745da38780c
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5916.0
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2020-05-06 00:00:00 UTC
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American Airlines Pulls More Airbus Jets from its Fleet
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AAL
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https://www.nasdaq.com/articles/american-airlines-pulls-more-airbus-jets-from-its-fleet-2020-05-06
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American Airlines Group (NASDAQ: AAL) is parking its fleet of Airbus (OTC: EADSY) A330-200s in storage until at least 2022, part of the airline's broader effort to downsize in response to the COVID-19 pandemic.
Like other airlines, American has been scrambling to cut costs and ground aircraft in response to air traffic demand falling 90% year over year. International flying, the A330-200's primary mission, has been cut particularly hard and is expected to take longer to recover than domestic air travel.
Image source: American Airlines.
Airlines are retiring significant numbers of planes, but for the most part those have tended to be the older, less efficient parts of their fleet. American to date has retired about 80 planes, including its entire fleet of Airbus A330-300s, its Boeing 757 and 767 fleets, and its Embraer E190s.
American's fleet of 15 A330-200s has an average age of 14 years and the newest plane joined the fleet just this year, according to aviation data site Flightera.net. American said the A330-200s routes would be flown by Boeing 777 and 787 aircraft, with A330 pilots set to be retrained to fly other airplanes.
The retirements, while costly, make sense for an airline expecting to fly fewer people for the foreseeable future. Airlines can save money on maintenance by pushing entire fleet types out of service, and larger jets like the A330-200s are unlikely to be useful with traffic numbers expected to remain low. Industry trade group Airlines for America is expected to testify before Congress Wednesday that airlines right now are averaging about 17 passengers per flight.
This might not be the last we hear of retirements by American. CFO Derek Kerr during the airline's first quarter call with investors last week mentioned its fleet of A330-200s and its 737-800s as potential cuts as the airline looks to downsize capacity.
10 stocks we like better than American Airlines Group
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*Stock Advisor returns as of April 16, 2020
Lou Whiteman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines Group (NASDAQ: AAL) is parking its fleet of Airbus (OTC: EADSY) A330-200s in storage until at least 2022, part of the airline's broader effort to downsize in response to the COVID-19 pandemic. International flying, the A330-200's primary mission, has been cut particularly hard and is expected to take longer to recover than domestic air travel. Airlines can save money on maintenance by pushing entire fleet types out of service, and larger jets like the A330-200s are unlikely to be useful with traffic numbers expected to remain low.
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American Airlines Group (NASDAQ: AAL) is parking its fleet of Airbus (OTC: EADSY) A330-200s in storage until at least 2022, part of the airline's broader effort to downsize in response to the COVID-19 pandemic. Like other airlines, American has been scrambling to cut costs and ground aircraft in response to air traffic demand falling 90% year over year. 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) is parking its fleet of Airbus (OTC: EADSY) A330-200s in storage until at least 2022, part of the airline's broader effort to downsize in response to the COVID-19 pandemic. 10 stocks we like better than American Airlines Group When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. * 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) is parking its fleet of Airbus (OTC: EADSY) A330-200s in storage until at least 2022, part of the airline's broader effort to downsize in response to the COVID-19 pandemic. American to date has retired about 80 planes, including its entire fleet of Airbus A330-300s, its Boeing 757 and 767 fleets, and its Embraer E190s. That's right -- they think these 10 stocks are even better buys.
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e20788ff-5140-496a-9d17-e12bb6d89ecb
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5917.0
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2020-05-06 00:00:00 UTC
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Airlines Want Relief on Mandatory Minimum Route Requirements
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AAL
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https://www.nasdaq.com/articles/airlines-want-relief-on-mandatory-minimum-route-requirements-2020-05-06
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As airline passenger traffic and revenue tumble from the impacts of the COVID-19 pandemic, carriers are looking for relief from federal requirements to maintain a minimum number of routes in their schedules. The requirement came with the $25 billion aid package meant to support U.S. airlines and their employees through the crisis.
Airline trade group Airlines for America (A4A) is representing the industry in asking for waivers on those requirements, according to CNBC. A4A advocates on behalf of its members by working with labor, Congress, the White House, and others. Member airlines include American Airlines Group (NASDAQ: AAL), Delta Air Lines (NYSE: DAL), Southwest Airlines (NYSE: LUV), and JetBlue Airways (NASDAQ: JBLU), among other U.S. carriers.
Image source: Getty Images.
Some airlines have already been granted waivers. Passenger air travel on U.S. airlines has dropped 94% in the most recent week, versus the year ago levels, says A4A. In a prepared statement it said, "the cost associated with operating nearly empty flights to communities with little to no demand significantly exacerbates air carrier liquidity," according to the CNBC report.
The trade group says that domestic flights are currently carrying 20 to 25 passengers on average even after cutting capacity, versus close to 100 in the first two months of 2020.
According to the report, Nicholas Calio, A4A's president and CEO said in his statement to the Senate Committee on Commerce, Science, and Transportation "we would ask both this Committee and the Administration to seek solutions to address the challenges posed by this unsustainable requirement. Make no mistake, as the duration of this pandemic lingers, the reasonability and practicality of this requirement significantly diminishes."
10 stocks we like better than JetBlue Airways
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David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and JetBlue Airways wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of April 16, 2020
Howard Smith has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Delta Air Lines and Southwest Airlines. The Motley Fool recommends JetBlue Airways. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Member airlines include American Airlines Group (NASDAQ: AAL), Delta Air Lines (NYSE: DAL), Southwest Airlines (NYSE: LUV), and JetBlue Airways (NASDAQ: JBLU), among other U.S. carriers. As airline passenger traffic and revenue tumble from the impacts of the COVID-19 pandemic, carriers are looking for relief from federal requirements to maintain a minimum number of routes in their schedules. In a prepared statement it said, "the cost associated with operating nearly empty flights to communities with little to no demand significantly exacerbates air carrier liquidity," according to the CNBC report.
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Member airlines include American Airlines Group (NASDAQ: AAL), Delta Air Lines (NYSE: DAL), Southwest Airlines (NYSE: LUV), and JetBlue Airways (NASDAQ: JBLU), among other U.S. carriers. The Motley Fool owns shares of and recommends Delta Air Lines and Southwest Airlines. The Motley Fool recommends JetBlue Airways.
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Member airlines include American Airlines Group (NASDAQ: AAL), Delta Air Lines (NYSE: DAL), Southwest Airlines (NYSE: LUV), and JetBlue Airways (NASDAQ: JBLU), among other U.S. carriers. Airline trade group Airlines for America (A4A) is representing the industry in asking for waivers on those requirements, according to CNBC. See the 10 stocks *Stock Advisor returns as of April 16, 2020 Howard Smith has no position in any of the stocks mentioned.
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Member airlines include American Airlines Group (NASDAQ: AAL), Delta Air Lines (NYSE: DAL), Southwest Airlines (NYSE: LUV), and JetBlue Airways (NASDAQ: JBLU), among other U.S. carriers. Airline trade group Airlines for America (A4A) is representing the industry in asking for waivers on those requirements, according to CNBC. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.
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2718717e-46e1-455c-a080-b93270a50f58
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5918.0
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2020-05-06 00:00:00 UTC
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3 Brand-Name Travel Stocks to Avoid Like the Plague
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AAL
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https://www.nasdaq.com/articles/3-brand-name-travel-stocks-to-avoid-like-the-plague-2020-05-06
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The past 10 weeks have taken Wall Street and investors for quite the ride. The spread of the coronavirus disease 2019 (COVID-19) led to a halt in nonessential business activity in most U.S. states and displaced more than 30 million workers in a little over a month. It's the most abrupt decline in economic activity in history, and it wound up leading to the quickest descent into bear market territory on record -- it took the S&P 500 just 17 trading days to decline 20% from its all-time closing high.
Amazingly, equities have bounced back almost as quickly as they fell. Although the benchmark S&P 500 remains down for the year, it retraced more than 60% of its losses at one point last week.
Image source: Getty Images.
Brand-name travel stocks aren't necessarily a bargain
A number of high-growth industries, such as technology and biotech, have been among the quickest to rebound from their lows. These are industries only expected to be adversely affected by COVID-19 in the near term. Meanwhile, travel stocks have consistently been some of the worst performers, even amid this rebound.
As Berkshire Hathaway CEO Warren Buffett noted during his company's virtual shareholder meeting this past weekend, the world has changed for the travel industry, and most notably airline stocks. If long-term-oriented investor Warren Buffett fails to see light at the end of the tunnel for much of the travel and leisure industry, then perhaps it's time for investors to rethink their investment thesis for the group.
While there are no doubt a handful of travel stocks that have more than enough capital to weather this storm, there are an equal amount of brand-name companies that look to be in deep trouble and should be avoided like the plague. Here are three such brand-name travel stocks you'd be smart to stay away from.
Image source: American Airlines.
American Airlines Group
One of the four major U.S. airlines that Buffett announced his company had completely sold out of in April is American Airlines Group (NASDAQ: AAL). American is one of the best-known names in the airline industry, and it currently has the largest fleet of all U.S. majors. However, its business could be adversely effected for years to come by the coronavirus, and its balance sheet is a mess.
For instance, at the beginning of April 2019, approximately 2.4 million people were being screened daily by the Transportation Security Administration in U.S. airports. By the beginning of April 2020, this figure was down to about 124,000 people being screened daily. Airlines have had little choice but to cut back on scheduled flights and operate some existing flights without maximum efficiency so as to uphold social distancing standards. Even when restrictions begin to be lifted, it's unclear when people will feel comfortable taking to the skies again.
Making matters worse, American Airlines got far too aggressive at an inopportune time with regard to upgrading and modernizing its fleet. As my Motley Fool colleague Adam Levine-Weinberg notes, American wound up choosing to retire nearly four dozen Boeing 737-800s well before it was time to replace them. This has ballooned American Airlines' net debt beyond $30 billion, leaving it with little financial flexibility. Plus, even when air traffic begins getting back to normal, American will be stuck with a glut of aircraft, more so than any of its peers.
Frankly, I'm not sure there's any real value to American Airlines' stock, and I'd suggest avoiding it above all other travel stocks.
Image source: Getty Images.
MGM Resorts International
Though I'm loosening the definition of "travel stock" a bit given that MGM Resorts International (NYSE: MGM) is a hotel and casino operator, the point is that the vast majority of people visiting an MGM property are likely doing so while on vacation or while traveling. In my mind, that qualifies it as a genuine travel stock -- and one to avoid like the plague.
As you can imagine, casino operators have been beaten to a pulp by the coronavirus pandemic. Casinos on the Las Vegas Strip were forcibly closed in mid-March to stem the spread of COVID-19. However, no casino operator is more adversely affected by this closure, in my view, than MGM Resorts. MGM generates close to half of its revenue from its Las Vegas Strip properties (MGM Grand, The Mirage, and Bellagio), and another quarter of its sales from other casinos operating throughout the United States. For as long as COVID-19 is a problem in the U.S., MGM is going to be down about 75% of its revenue.
But even after casinos reopen in the U.S., things aren't going to simply bounce back overnight. Initial guidance provided by Nevada's regulators states that casinos will need to limit occupancy to 50%. Though this will likely result in a one-for-one-type decline in slot machine revenue, it'll result in an even greater adverse impact on table games, where perhaps only two people are allowed at a table instead of six. Slots and table games are where casino operators generate the bulk of their revenue.
Furthermore, April's casino revenue from Macao, where MGM generates the final quarter of its revenue, declined 97% year over year despite reopening to the public. This demonstrates how difficult it'll be for tourist destinations to lure back gamblers.
Given MGM's more than $14 billion in net debt and dismal outlook for 2020 and 2021, it looks like a travel stock you can easily avoid.
The Carnival Pacific Jewel anchored off port. Image source: Carnival.
Carnival Corp.
Another travel stock that's bound to make investors sick to their stomachs should they buy it is cruise line operator Carnival (NYSE: CCL).
Of all the travel industries hit by COVID-19, it's cruise lines that might be the absolute last to see their restrictions lifted. On April 10, the Centers for Disease Control and Prevention ruled that cruise ships should not set sail for another 100 days, or until certain circumstances are met, such as the coronavirus no longer being a public health emergency. This ruling is actually an extension of a no-sail order implemented on March 14. In other words, cruise ships could be parked at their ports for perhaps 130 or more days with no means of generating revenue.
What's more, cruise lines that include Carnival are under serious fire for how they conveyed information to their passengers and crew regarding the coronavirus. For instance, a class action lawsuit has been filed against Costa (a subsidiary of Carnival) for allegedly concealing infections onboard the Costa Luminosa and purportedly blocking certain TV channels that would have shown the scope of infections worldwide. Lawsuits may become more common in the coming months as trust in Carnival and other cruise operators has been all but lost.
Then there's Carnival's balance sheet, which had close to $1.4 billion in cash and equivalents and more than $14 billion in debt on it as of the end of the fiscal first quarter. Sure, the company had $11.7 billion in liquidity, but it may need every penny of it given how long it might take for passengers to return. In my view, nothing short of a highly effective COVID-19 vaccine would make Carnival stock worth considering for your portfolio.
10 stocks we like better than Carnival
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Carnival wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of April 16, 2020
Sean Williams has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Berkshire Hathaway (B shares). The Motley Fool recommends Carnival 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 One of the four major U.S. airlines that Buffett announced his company had completely sold out of in April is American Airlines Group (NASDAQ: AAL). As Berkshire Hathaway CEO Warren Buffett noted during his company's virtual shareholder meeting this past weekend, the world has changed for the travel industry, and most notably airline stocks. While there are no doubt a handful of travel stocks that have more than enough capital to weather this storm, there are an equal amount of brand-name companies that look to be in deep trouble and should be avoided like the plague.
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American Airlines Group One of the four major U.S. airlines that Buffett announced his company had completely sold out of in April is American Airlines Group (NASDAQ: AAL). MGM Resorts International Though I'm loosening the definition of "travel stock" a bit given that MGM Resorts International (NYSE: MGM) is a hotel and casino operator, the point is that the vast majority of people visiting an MGM property are likely doing so while on vacation or while traveling. Furthermore, April's casino revenue from Macao, where MGM generates the final quarter of its revenue, declined 97% year over year despite reopening to the public.
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American Airlines Group One of the four major U.S. airlines that Buffett announced his company had completely sold out of in April is American Airlines Group (NASDAQ: AAL). Frankly, I'm not sure there's any real value to American Airlines' stock, and I'd suggest avoiding it above all other travel stocks. MGM Resorts International Though I'm loosening the definition of "travel stock" a bit given that MGM Resorts International (NYSE: MGM) is a hotel and casino operator, the point is that the vast majority of people visiting an MGM property are likely doing so while on vacation or while traveling.
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American Airlines Group One of the four major U.S. airlines that Buffett announced his company had completely sold out of in April is American Airlines Group (NASDAQ: AAL). Frankly, I'm not sure there's any real value to American Airlines' stock, and I'd suggest avoiding it above all other travel stocks. However, no casino operator is more adversely affected by this closure, in my view, than MGM Resorts.
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5fee9337-fc1a-4754-8e2f-5c94d719347c
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5919.0
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2020-05-06 00:00:00 UTC
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Blast at Anglo American coal mine in Australia injures five
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AAL
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https://www.nasdaq.com/articles/blast-at-anglo-american-coal-mine-in-australia-injures-five-2020-05-06
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nan
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Adds details on accident, mine size, background
MELBOURNE, May 6 (Reuters) - An explosion halted production on Wednesday at a coal mine run by Anglo American AAL.L in Australia's northeastern state of Queensland, injuring five people just months after a review of the industry called for better regulation.
The incident is the company's second in 15 months in the area, after a miner died and four were injured at an adjoining complex in February last year in an underground accident that halted operations for four days.
"The mine is in the process of being evacuated and operations stopped," Anglo American said, adding that those injured at its Grosvenor metallurgical coal mine in the central Bowen Basin had been taken to hospital, and their families told.
"All remaining on site personnel have been accounted for," it said in its statement.
The Australian Broadcasting Corp (ABC) said the patients were in critical condition after suffering burns to their upper bodies and airways following the blast.
A representative of the Queensland Mines Inspectorate confirmed its inspectors were on site and had begun an investigation into the incident.
Grosvenor produced 4.7 million tonnes of metallurgical or steel-making coal in 2019.
Last year the state commissioned an industry review after six deaths at mining sites over the year to July 2019, and passed legislation for an independent health and safety regulator, expected to be set up by the second half of 2020.
The Brady Review examined the causes of 47 deaths in the state's mining industry from 2000 to 2019.
(Reporting by Melanie Burton in Melbourne; Additional reporting by Zandi Shabalala in London; Editing by Christian Schmollinger and Clarence Fernandez)
((melanie.burton@thomsonreuters.com Twitter: @MelanieMetals; +613 9286 1421; Reuters Messaging: melanie.burton.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Adds details on accident, mine size, background MELBOURNE, May 6 (Reuters) - An explosion halted production on Wednesday at a coal mine run by Anglo American AAL.L in Australia's northeastern state of Queensland, injuring five people just months after a review of the industry called for better regulation. The incident is the company's second in 15 months in the area, after a miner died and four were injured at an adjoining complex in February last year in an underground accident that halted operations for four days. The Australian Broadcasting Corp (ABC) said the patients were in critical condition after suffering burns to their upper bodies and airways following the blast.
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Adds details on accident, mine size, background MELBOURNE, May 6 (Reuters) - An explosion halted production on Wednesday at a coal mine run by Anglo American AAL.L in Australia's northeastern state of Queensland, injuring five people just months after a review of the industry called for better regulation. "The mine is in the process of being evacuated and operations stopped," Anglo American said, adding that those injured at its Grosvenor metallurgical coal mine in the central Bowen Basin had been taken to hospital, and their families told. Last year the state commissioned an industry review after six deaths at mining sites over the year to July 2019, and passed legislation for an independent health and safety regulator, expected to be set up by the second half of 2020.
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Adds details on accident, mine size, background MELBOURNE, May 6 (Reuters) - An explosion halted production on Wednesday at a coal mine run by Anglo American AAL.L in Australia's northeastern state of Queensland, injuring five people just months after a review of the industry called for better regulation. "The mine is in the process of being evacuated and operations stopped," Anglo American said, adding that those injured at its Grosvenor metallurgical coal mine in the central Bowen Basin had been taken to hospital, and their families told. Last year the state commissioned an industry review after six deaths at mining sites over the year to July 2019, and passed legislation for an independent health and safety regulator, expected to be set up by the second half of 2020.
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Adds details on accident, mine size, background MELBOURNE, May 6 (Reuters) - An explosion halted production on Wednesday at a coal mine run by Anglo American AAL.L in Australia's northeastern state of Queensland, injuring five people just months after a review of the industry called for better regulation. "The mine is in the process of being evacuated and operations stopped," Anglo American said, adding that those injured at its Grosvenor metallurgical coal mine in the central Bowen Basin had been taken to hospital, and their families told. "All remaining on site personnel have been accounted for," it said in its statement.
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640e87c2-3a73-47f1-a04c-29f929fd56d0
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5920.0
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2020-05-06 00:00:00 UTC
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United Airlines to raise $2.25 bln through bond offering
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AAL
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https://www.nasdaq.com/articles/united-airlines-to-raise-%242.25-bln-through-bond-offering-2020-05-06
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nan
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Adds background, shares
May 6 (Reuters) - United Airlines Holdings Inc UAL.O said it plans to raise $2.25 billion through a bond offering as it grapples with a slump in air travel demand due to government-mandated lockdowns across the world.
U.S. airlines are collectively burning more than $10 billion in cash a month because of the coronavirus pandemic, an industry trade group said on Wednesday.
Chicago-based United has accepted U.S. government payroll aid that bans job or pay cuts before Sept. 30.
However, United and other carriers have warned that demand is unlikely to recover to pre-crisis levels by that date, forcing them to shrink in the fall.
Airlines have turned to raising capitaland cutting costs to shore up liquidity and tackle the lack of demand.
The No. 3 U.S. airline said it would offer the bonds in two tranches that will mature in 2023 and 2025, and use the proceeds from the offering to repay a $2 billion term loan and for general corporate purposes.
Delta Air Lines DAL.N expects to have $10 billion in liquidity in June, up from $6 billion in March, while American Airlines AAL.O expects liquidity at $11 billion in the second quarter, up from $6.8 billion in the first.
United Airlines shares were up marginally at $24.17 before the bell.
(Reporting by Rachit Vats and Sanjana Shivdas in Bengaluru Editing by Supriya Kurane)
((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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Delta Air Lines DAL.N expects to have $10 billion in liquidity in June, up from $6 billion in March, while American Airlines AAL.O expects liquidity at $11 billion in the second quarter, up from $6.8 billion in the first. Adds background, shares May 6 (Reuters) - United Airlines Holdings Inc UAL.O said it plans to raise $2.25 billion through a bond offering as it grapples with a slump in air travel demand due to government-mandated lockdowns across the world. U.S. airlines are collectively burning more than $10 billion in cash a month because of the coronavirus pandemic, an industry trade group said on Wednesday.
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Delta Air Lines DAL.N expects to have $10 billion in liquidity in June, up from $6 billion in March, while American Airlines AAL.O expects liquidity at $11 billion in the second quarter, up from $6.8 billion in the first. Adds background, shares May 6 (Reuters) - United Airlines Holdings Inc UAL.O said it plans to raise $2.25 billion through a bond offering as it grapples with a slump in air travel demand due to government-mandated lockdowns across the world. United Airlines shares were up marginally at $24.17 before the bell.
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Delta Air Lines DAL.N expects to have $10 billion in liquidity in June, up from $6 billion in March, while American Airlines AAL.O expects liquidity at $11 billion in the second quarter, up from $6.8 billion in the first. Adds background, shares May 6 (Reuters) - United Airlines Holdings Inc UAL.O said it plans to raise $2.25 billion through a bond offering as it grapples with a slump in air travel demand due to government-mandated lockdowns across the world. 3 U.S. airline said it would offer the bonds in two tranches that will mature in 2023 and 2025, and use the proceeds from the offering to repay a $2 billion term loan and for general corporate purposes.
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Delta Air Lines DAL.N expects to have $10 billion in liquidity in June, up from $6 billion in March, while American Airlines AAL.O expects liquidity at $11 billion in the second quarter, up from $6.8 billion in the first. Adds background, shares May 6 (Reuters) - United Airlines Holdings Inc UAL.O said it plans to raise $2.25 billion through a bond offering as it grapples with a slump in air travel demand due to government-mandated lockdowns across the world. U.S. airlines are collectively burning more than $10 billion in cash a month because of the coronavirus pandemic, an industry trade group said on Wednesday.
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08bbd06d-cc9e-49e3-8edb-635416cd8f66
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5921.0
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2020-05-05 00:00:00 UTC
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Amplats completes repair to processing plant unit after blast
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AAL
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https://www.nasdaq.com/articles/amplats-completes-repair-to-processing-plant-unit-after-blast-2020-05-05
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Adds detail and CEO quote
JOHANNESBURG, May 5 (Reuters) - Anglo American Platinum (Amplats) AMSJ.J said on Tuesday it had completed repairs to one unit at its Anglo Converter Plant and would lift its force majeure to suppliers of concentrate, three months after a blast shut processing facilities.
The Johannesburg-listed miner said it expected the Anglo Converter Plant and full downstream processing operations to be fully operational at its Phase B unit from May 12, while repairs would continue at its Phase A unit.
The damage to the processing facilities forced Amplats, one of the world's largest platinum producers, to declare force majeure and cut its production outlook.
"As we complete the ramp-up, we are engaging with suppliers of concentrate to lift force majeure imminently. All temporary commercial arrangements applicable during the force majeure period will revert to normal commercial terms," Anglo American Platinum CEO Natascha Viljoen said.
Amplats said the force majeure notice would remain for the time being for its refined metal customers due to the time taken to refine the respective platinum group and base metals.
(Reporting by Tanisha Heiberg; Editing by Andrew Heavens and Alexander Smith)
((Tanisha.Heiberg@thomsonreuters.com; +27117753034; Reuters Messaging: tanisha.heiberg.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Adds detail and CEO quote JOHANNESBURG, May 5 (Reuters) - Anglo American Platinum (Amplats) AMSJ.J said on Tuesday it had completed repairs to one unit at its Anglo Converter Plant and would lift its force majeure to suppliers of concentrate, three months after a blast shut processing facilities. "As we complete the ramp-up, we are engaging with suppliers of concentrate to lift force majeure imminently. (Reporting by Tanisha Heiberg; Editing by Andrew Heavens and Alexander Smith) ((Tanisha.Heiberg@thomsonreuters.com; +27117753034; Reuters Messaging: tanisha.heiberg.thomsonreuters.com@reuters.net)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Adds detail and CEO quote JOHANNESBURG, May 5 (Reuters) - Anglo American Platinum (Amplats) AMSJ.J said on Tuesday it had completed repairs to one unit at its Anglo Converter Plant and would lift its force majeure to suppliers of concentrate, three months after a blast shut processing facilities. The damage to the processing facilities forced Amplats, one of the world's largest platinum producers, to declare force majeure and cut its production outlook. All temporary commercial arrangements applicable during the force majeure period will revert to normal commercial terms," Anglo American Platinum CEO Natascha Viljoen said.
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Adds detail and CEO quote JOHANNESBURG, May 5 (Reuters) - Anglo American Platinum (Amplats) AMSJ.J said on Tuesday it had completed repairs to one unit at its Anglo Converter Plant and would lift its force majeure to suppliers of concentrate, three months after a blast shut processing facilities. The damage to the processing facilities forced Amplats, one of the world's largest platinum producers, to declare force majeure and cut its production outlook. Amplats said the force majeure notice would remain for the time being for its refined metal customers due to the time taken to refine the respective platinum group and base metals.
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Adds detail and CEO quote JOHANNESBURG, May 5 (Reuters) - Anglo American Platinum (Amplats) AMSJ.J said on Tuesday it had completed repairs to one unit at its Anglo Converter Plant and would lift its force majeure to suppliers of concentrate, three months after a blast shut processing facilities. The damage to the processing facilities forced Amplats, one of the world's largest platinum producers, to declare force majeure and cut its production outlook. All temporary commercial arrangements applicable during the force majeure period will revert to normal commercial terms," Anglo American Platinum CEO Natascha Viljoen said.
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5922.0
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2020-05-05 00:00:00 UTC
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With Buffett Selling and $1 Price Target, is it Time to Buy AAL Stock?
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AAL
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https://www.nasdaq.com/articles/with-buffett-selling-and-%241-price-target-is-it-time-to-buy-aal-stock-2020-05-05
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
It has not been a good couple of days for American Airlines (NASDAQ:AAL) stock. While AAL stock actually ended the last week of April higher by 3.2%, don’t let that “gain” fool you.
Source: GagliardiPhotography / Shutterstock.com
First realize that, even though the carrier’s shares ended the week higher, it still closed more than 17% below its five-day high. Second, despite a massive rally in the overall markets, American Airlines stock can hardly get off the mat. Shares are barely holding up above the 52-week low.
For comparison, in the last five days, while AAL stock lost 9.7%, the 34-stock U.S. Global Jets ETF (NYSEArca:JETS) was down about a third of that, off 3.2%. American Airlines is the exchange-traded fund’s number two holding, at 11.45%, just behind Southwest Airlines (NYSE:LUV) at 11.73% of the portfolio.
Now, look at some of these recent news items.
Bevy of Bearishness
First, we have earnings. On April 30, the company reported a top- and bottom-line miss.
A non-GAAP loss of $2.65 per share missed estimates by 29 cents, while a GAAP loss of $5.26 per share missed estimates by more than $3 per share. Revenue of $8.52 billion was down 19.5% year-over-year and missed expectations by almost $500 million.
7 Fundamentally Solid Dividend Stocks to Buy
Some investors may think a 20% drop in revenue isn’t so bad under the circumstances. That is, until they realize it was basically business as usual for two-thirds of the quarter. It shows just what type of drought American Airlines and its airline-industry peers are dealing with.
On May 1, Evercore ISI cut its price target from $10 to a chilling $1. That goes alongside the firm’s underweight rating, with the analyst arguing that American will end the year with net debt “far exceeding” revenue. Evercore further argued that AAL entered the crisis with the weakest balance sheet compared to its peers.
Over the weekend, Warren Buffett spoke on the airlines. “It changed in a very major way,” The Oracle of Omaha said of the airline business. Buffett acknowledges that the firm was not disappointed in the way the businesses were being run.
However, that didn’t stop Berkshire Hathaway (NYSE:BRK.B, NYSE:BRK.A) from exiting its position in the industry. It sold its stakes in Delta Air Lines (NYSE:DAL), Southwest, United Airlines (NASDAQ:UAL) and you guessed it, AAL stock.
He urged investors not to think of Berkshire’s exit as a market prediction. Rather, he reasoned that the upside would be limited due to federal-aid borrowing and said, “I’m not sure if as many people are going to be flying in two or three years.”
A Possible Silver Lining?
Click to Enlarge
Source: Chart courtesy of StockCharts.com
We have a bad top- and bottom-line earnings miss, a new $1 price target and Warren Buffet hitting the exits. What could possibly be the silver lining in this case?
The silver lining here would be AAL stock avoiding new 52-week lows. The caveat to that statement would be for American Airlines to break the lows but quickly reclaim them.
Shares fell 11.4% on Friday and were down another 10% in Monday trading before clawing back and ending the day off 7.71%, to roughly $9.80. This isn’t just a make-or-break situation for AAL stock — it is for most of the industry as it pertains to the technicals.
9 Healthcare Stocks to Buy Even After the Coronavirus Fades
If American Airlines can avoid making new lows with so much negativity in the air, it will be an impressive feat. It will also show that the bears don’t have what it takes to drive the stock lower.
Bottom Line on AAL Stock
Click to Enlarge
Source: Chart courtesy of Statista, Source from TSA
Does that possibility make me bullish on AAL stock? No.
For starters, the possibility of a silver lining is just that: a possibility. It is not a guarantee. If it comes to fruition I will be more bullish, but the carrier is not out of the woods yet. I covered American Airlines stock last month, lamenting about its poor financials compared to its peers.
Federal aid may keep American from its otherwise one-way ticket to bankruptcy. But that doesn’t mean it’s a business I want to invest in. The latest earnings report was proof enough.
While last quarter and this quarter are likely to take the brunt of the novel coronavirus, it’s hitting at a bad time. Q2 and Q3 are historically American Air’s best two quarters, and they will be hampered by lower airport traffic. Further, the company is aiming to lower its cash burn to $70 million per day for Q2. For an entity with an already-weakened balance sheet, this is bad news.
It leaves us in a wait-and-see approach, starting with how the stock responds on this dip. No new lows would be great news for bulls.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell did not hold a position in any of the aforementioned securities.
The post With Buffett Selling and $1 Price Target, is it Time to Buy AAL 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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It sold its stakes in Delta Air Lines (NYSE:DAL), Southwest, United Airlines (NASDAQ:UAL) and you guessed it, AAL stock. InvestorPlace - Stock Market News, Stock Advice & Trading Tips It has not been a good couple of days for American Airlines (NASDAQ:AAL) stock. While AAL stock actually ended the last week of April higher by 3.2%, don’t let that “gain” fool you.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips It has not been a good couple of days for American Airlines (NASDAQ:AAL) stock. It sold its stakes in Delta Air Lines (NYSE:DAL), Southwest, United Airlines (NASDAQ:UAL) and you guessed it, AAL stock. While AAL stock actually ended the last week of April higher by 3.2%, don’t let that “gain” fool you.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips It has not been a good couple of days for American Airlines (NASDAQ:AAL) stock. It sold its stakes in Delta Air Lines (NYSE:DAL), Southwest, United Airlines (NASDAQ:UAL) and you guessed it, AAL stock. While AAL stock actually ended the last week of April higher by 3.2%, don’t let that “gain” fool you.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips It has not been a good couple of days for American Airlines (NASDAQ:AAL) stock. The silver lining here would be AAL stock avoiding new 52-week lows. While AAL stock actually ended the last week of April higher by 3.2%, don’t let that “gain” fool you.
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5923.0
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2020-05-05 00:00:00 UTC
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2 Small-Cap Stocks With Big-Cap Potential
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AAL
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https://www.nasdaq.com/articles/2-small-cap-stocks-with-big-cap-potential-2020-05-05
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The stock market crash in March created some intriguing opportunities for long-term investors. The COVID-19 health crisis (and the lockdown it necessitated) sent the stock for plenty of companies down to new 52-week lows.
For instance, shares of space tourism company Virgin Galactic (NYSE: SPCE), dropped from a high around $42 in February all the way to $10 a share in mid-March. In another example, the investors in Park Hotels & Resorts (NYSE: PK) thought they were owners of a safe, boring investment that paid nice dividends, until this staid hotel stock dropped from a high of around $26 a share in January, all the way down to $4 a share in mid-March.
If you bought either stock at these new lows, go ahead and cheer. Over the last six weeks or so, Virgin Galactic shares have jumped from $10 a share up to $16. Park Hotels has more than doubled, from $4 to almost $9 a share.
But this climb back up might be just the beginning for these two small-cap companies with big-cap potential.
Image source: Getty Images.
When will the hotel industry reopen?
Park Hotels & Resorts was spun off of Hilton Worldwide in 2017. It's a real estate investment trust, or REIT, which means that 90% of its taxable income has to be distributed to shareholders. In ordinary times, this is a relatively safe investment. You're buying shares in 60 upscale hotels around the world. It's not a high-flying growth stock -- most investors are buying it for the predictable dividend income.
But COVID-19 has turned the hotel industry -- along with a bunch of other mature industries -- into speculative stocks. With many hotels either closed or operating at very reduced levels, there isn't much income being generated lately. In mid-March, the company announced it would likely suspend its dividend over this uncertainty and the need for operational cash.
In January, when Park Hotels was trading at $26 a share, nobody expected the company's 60 hotels to be largely shut down because of a worldwide health scare. Of course, the same goes for restaurants, movie theaters, airlines, cruise ships, and many other consumer businesses. The sharp drop to $4 a share priced all of this macro bad news in.
The quick rise off the bottom from $4 to $9 a share may be related to the market anticipating that states will soon allow businesses to re-open, perhaps as early as May. Right now this hotel stock, like many others, is kind of a barometer for our COVID-19 fears, and how optimistic investors are about a recovery.
Park Hotels & Resorts has $1.3 billion in cash. That's enough to carry the company through this short-term health crisis until the hotels are allowed to reopen again. Like many companies, Park has yanked its guidance for the year. But we don't need guidance to understand the future business will be a lot stronger than it is right now. While the company's revenue in 2020 will almost certainly be awful, what will 2021 be like? Obviously, when we are comparing open hotels to closed hotels, the comps should be fantastic.
The missing revenue of the here-and-now makes this mature and stable business seem like a fast-growing start-up company. (Certainly, it was trading like one last week.) The lockdown has crashed the business and the stock for now. But over the next year or two, as sales again return to historical norms, the stock price should zoom along with it.
How's the space race coming along?
Last year our family bought a few shares of Virgin Galactic with our "mad money." It was looked at as a high-risk investment on a classic rule-breaker with a huge potential upside. We bought before Morgan Stanley made its iconic forecast of an $800 billion space travel industry. We had rather fortunate timing for our purchase, as the stock ran up into the stratosphere in early 2020.
We bought in at $9 and change per share. In a few months the stock ran up to $42 a share. And then COVID-19 hit, yanking the stock back down to earth.
Perhaps surprisingly, however, Virgin Galactic is in a much stronger position than a lot of businesses that were closed down by this health scare. For one thing, Virgin Galactic has been declared an "essential business," so there is no mandate from the government that it halt operations. But an even stronger argument for buying this stock is that the company has 20 times more cash ($480 million) than debt ($24 million).
Yes, the initial tourism-focused space flights will likely be delayed because of COVID-19, perhaps pushed into 2021. But the long-term opportunity for this aviation disruptor remains massive. And its moat is still impressive. This is rocket science, after all, and only two companies are serious competitors in space (Blue Origin and SpaceX, both private).
Space travel allows these companies to create far faster flight paths. It takes United Airlines and American Airlines 11 hours to fly people from Los Angeles to Tokyo. Virgin Galactic will do it in two.
My expectation is that airline stocks will bounce back over the next couple of years, for the same reasons the hotels will recover. Over the long term, however, I predict that Virgin Galactic will be a superior investment, as the company takes market share from existing airlines, while it simultaneously opens up completely new business opportunities in space travel.
10 stocks we like better than Park Hotels & Resorts Inc.
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Park Hotels & Resorts Inc. wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of April 16, 2020
Taylor Carmichael owns shares of Virgin Galactic Holdings Inc. The Motley Fool owns shares of Virgin Galactic Holdings Inc. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The quick rise off the bottom from $4 to $9 a share may be related to the market anticipating that states will soon allow businesses to re-open, perhaps as early as May. Over the long term, however, I predict that Virgin Galactic will be a superior investment, as the company takes market share from existing airlines, while it simultaneously opens up completely new business opportunities in space travel. * David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Park Hotels & Resorts Inc. wasn't one of them!
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For instance, shares of space tourism company Virgin Galactic (NYSE: SPCE), dropped from a high around $42 in February all the way to $10 a share in mid-March. Over the long term, however, I predict that Virgin Galactic will be a superior investment, as the company takes market share from existing airlines, while it simultaneously opens up completely new business opportunities in space travel. The Motley Fool owns shares of Virgin Galactic Holdings Inc.
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In another example, the investors in Park Hotels & Resorts (NYSE: PK) thought they were owners of a safe, boring investment that paid nice dividends, until this staid hotel stock dropped from a high of around $26 a share in January, all the way down to $4 a share in mid-March. In January, when Park Hotels was trading at $26 a share, nobody expected the company's 60 hotels to be largely shut down because of a worldwide health scare. Over the long term, however, I predict that Virgin Galactic will be a superior investment, as the company takes market share from existing airlines, while it simultaneously opens up completely new business opportunities in space travel.
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Over the last six weeks or so, Virgin Galactic shares have jumped from $10 a share up to $16. In January, when Park Hotels was trading at $26 a share, nobody expected the company's 60 hotels to be largely shut down because of a worldwide health scare. * David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Park Hotels & Resorts Inc. wasn't one of them!
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5924.0
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2020-05-05 00:00:00 UTC
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How to Approach the Next American Airlines Stock Breakout
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AAL
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https://www.nasdaq.com/articles/how-to-approach-the-next-american-airlines-stock-breakout-2020-05-05
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Airline stocks are the redheaded stepchildren of 2020. They’ve been beaten down and tossed in the trash. Even Warren Buffett felt the need to jettison them from his portfolio. Last week’s earnings report for American Airlines (NYSE:AAL) was as bad as you’d expect, and AAL stock is now a whisker away from a new 52-week low.
Source: GagliardiPhotography / Shutterstock.com
Today we’re looking at the updated price levels that you can build trades around and suggesting why options might be a better route than stock for trading.
Buffett Bails on AAL Stock
Over the weekend during Berkshire Hathaway’s (NYSE:BRK.B) annual shareholder meeting, Warren Buffett announced his company had sold its entire stake in airlines. The liquidated position included millions of shares in the top four carriers. The damage of the admission carries a fair amount of psychological heft. For better or worse, many investors take their cues from the Oracle of Omaha’s actions. The rationale goes something like this: If airlines aren’t good enough for a smart-as-a-whip billionaire like Buffett, then why should I hold onto them?
And it’s not as if Buffett is giving in to short-termism. He’s built a reputation for focusing on the long run, so the dramatic reversal of fortune for airlines due to the novel coronavirus must have changed his outlook on the long-term prospects enough to justify locking-in big losses.
10 Overleveraged Stocks to Sell For Peace of Mind
The fact that airline stocks like AAL opened deep in the red monday morning is proof that some investors smashed the sell button after Berkshire’s revelations.
The Price Chart Remains Bearish
Even if we ignore the news and disastrous earnings numbers, the price chart of American Airlines leaves much to be desired. At just under $10, American Airlines is down 83% from its 2018 peak. The weekly trend hasn’t been able to cobble together two consecutive up weeks since the beginning of the year, which suggests sellers have been extra quick to pounce on rallies.
Source: The thinkorswim® platform from TD Ameritrade
The daily chart does show some stability cropping up over the past six weeks — at least enough for the 20-day moving average to flatten out. But flattening and reversing are two very different things. And until we see buyers muster up enough strength to jam AAL back through a resistance zone, the downtrend will remain in force. Last week’s ramp ahead of earnings challenged the $13.50 ceiling, but the post-report selling pulled the stock right back down.
The rejection at $13.50 reinforces its importance. That’s the line that needs to be crossed before we can get more constructive in the short run. On the flip side, we have critical support near $9. Buyers emerged there this morning to buy the down gap and defend their turf. If you’re looking to deploy bear trades, I suggest waiting for a confirmed break of $9 first. That or a run back toward resistance.
Define Risk with Options
Given the low cost of American Airlines’ shares, you could rightly ask why a trader should dabble with using options contracts at all. I have two reasons. First, buying puts or put spreads instead of shorting stock limits what would have been an unlimited-risk play. That way, if AAL stock unexpectedly gaps up overnight, you won’t incur a much bigger loss than anticipated. And as for bullish trades, using calls or call spreads over long stock offers more leverage – a bigger bang for your buck, if you will.
Rather than guessing at the direction of American Airlines’ next swing, take the easier route and wait for a signal before pulling the trigger.
Here are two options spreads ideas to game the next breakout.
Bull Trade: Buy Aug $13/$18 call spreads on a break above $13.50.
Bear Trade: Buy the Jun $9/$5 put spreads on a break below $9.
For a free trial to the best trading community on the planet and Tyler’s current home, click here! As of this writing, Tyler didn’t hold positions in any of the aforementioned securities.
The post How to Approach the Next American Airlines Stock Breakout 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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Last week’s earnings report for American Airlines (NYSE:AAL) was as bad as you’d expect, and AAL stock is now a whisker away from a new 52-week low. Buffett Bails on AAL Stock Over the weekend during Berkshire Hathaway’s (NYSE:BRK.B) annual shareholder meeting, Warren Buffett announced his company had sold its entire stake in airlines. 10 Overleveraged Stocks to Sell For Peace of Mind The fact that airline stocks like AAL opened deep in the red monday morning is proof that some investors smashed the sell button after Berkshire’s revelations.
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Last week’s earnings report for American Airlines (NYSE:AAL) was as bad as you’d expect, and AAL stock is now a whisker away from a new 52-week low. Buffett Bails on AAL Stock Over the weekend during Berkshire Hathaway’s (NYSE:BRK.B) annual shareholder meeting, Warren Buffett announced his company had sold its entire stake in airlines. 10 Overleveraged Stocks to Sell For Peace of Mind The fact that airline stocks like AAL opened deep in the red monday morning is proof that some investors smashed the sell button after Berkshire’s revelations.
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Last week’s earnings report for American Airlines (NYSE:AAL) was as bad as you’d expect, and AAL stock is now a whisker away from a new 52-week low. 10 Overleveraged Stocks to Sell For Peace of Mind The fact that airline stocks like AAL opened deep in the red monday morning is proof that some investors smashed the sell button after Berkshire’s revelations. Buffett Bails on AAL Stock Over the weekend during Berkshire Hathaway’s (NYSE:BRK.B) annual shareholder meeting, Warren Buffett announced his company had sold its entire stake in airlines.
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Last week’s earnings report for American Airlines (NYSE:AAL) was as bad as you’d expect, and AAL stock is now a whisker away from a new 52-week low. Buffett Bails on AAL Stock Over the weekend during Berkshire Hathaway’s (NYSE:BRK.B) annual shareholder meeting, Warren Buffett announced his company had sold its entire stake in airlines. 10 Overleveraged Stocks to Sell For Peace of Mind The fact that airline stocks like AAL opened deep in the red monday morning is proof that some investors smashed the sell button after Berkshire’s revelations.
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5925.0
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2020-05-05 00:00:00 UTC
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EXCLUSIVE-U.S. airlines burn $10 billion a month as traffic plummets
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AAL
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https://www.nasdaq.com/articles/exclusive-u.s.-airlines-burn-%2410-billion-a-month-as-traffic-plummets-2020-05-05-0
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nan
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By David Shepardson and Tracy Rucinski
May 5 (Reuters) - U.S. airlines are collectively burning more than $10 billion in cash per month and averaging fewer than two dozen passengers per domestic flight in the wake of the coronavirus pandemic, industry trade group Airlines for America said in prepared testimony seen by Reuters ahead of a U.S. Senate hearing on Wednesday.
Even after grounding more than 3,000 aircraft, or nearly 50% of the active U.S. fleet, the group said its member carriers, which include the four largest U.S. airlines, are averaging just 17 passengers per domestic flight and 29 passengers per international flight.
"The U.S. airline industry will emerge from this crisis a mere shadow of what it was just three short months ago," the group's chief executive, Nicholas Calio, will say, according to his prepared testimony.
Net booked passengers have fallen by nearly 100% year-on-year, the testimony before the Senate Commerce Committee said. The group warned that if air carriers were to refund all tickets, including those purchased as nonrefundable or those canceled by a passenger instead of the carrier, "this will result in negative cash balances that will lead to bankruptcy."
U.S. airlines have canceled hundreds of thousands of flights, including 80% or more of scheduled flights into June as U.S. passenger traffic has fallen by 95% since March. They are conducting additional cleaning measures and requiring all passengers to wear facial coverings.
Calio said airlines "anticipate a long and difficult road ahead ... History has shown that air transport demand has never experienced a V-shaped recovery from a downturn."
The U.S. Treasury has awarded nearly $25 billion in cash grants to airlines to help them meet payroll costs in exchange for them agreeing not to lay off workers through Sept. 30. Major airlines have warned they will likely need to make additional cuts later this year to respond to a long-term decline in travel demand.
United Airlines Co UAL.O said Monday it plans to cut at least 3,450 management and administrative workers on Oct. 1, or 30% of those workers.
Also testifiying at the hearing on the state of the aviation sector is Eric Fanning, who heads the Aerospace Industries Association. Boeing Co BA.N said last week it will cut 16,000 jobs by the end of the year, while GE Aviation GE.N plans to cut up to 13,000 jobs and airplane supplier Spirit AeroSystems SPR.N is cutting 1,450 jobs.
Todd Hauptli, who heads the American Association of Airport Executives, will also testify.
(Reporting by David Shepardson in Washington and Tracy Rucinski in Chicago 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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By David Shepardson and Tracy Rucinski May 5 (Reuters) - U.S. airlines are collectively burning more than $10 billion in cash per month and averaging fewer than two dozen passengers per domestic flight in the wake of the coronavirus pandemic, industry trade group Airlines for America said in prepared testimony seen by Reuters ahead of a U.S. Senate hearing on Wednesday. "The U.S. airline industry will emerge from this crisis a mere shadow of what it was just three short months ago," the group's chief executive, Nicholas Calio, will say, according to his prepared testimony. Calio said airlines "anticipate a long and difficult road ahead ... History has shown that air transport demand has never experienced a V-shaped recovery from a downturn."
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By David Shepardson and Tracy Rucinski May 5 (Reuters) - U.S. airlines are collectively burning more than $10 billion in cash per month and averaging fewer than two dozen passengers per domestic flight in the wake of the coronavirus pandemic, industry trade group Airlines for America said in prepared testimony seen by Reuters ahead of a U.S. Senate hearing on Wednesday. Even after grounding more than 3,000 aircraft, or nearly 50% of the active U.S. fleet, the group said its member carriers, which include the four largest U.S. airlines, are averaging just 17 passengers per domestic flight and 29 passengers per international flight. The group warned that if air carriers were to refund all tickets, including those purchased as nonrefundable or those canceled by a passenger instead of the carrier, "this will result in negative cash balances that will lead to bankruptcy."
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By David Shepardson and Tracy Rucinski May 5 (Reuters) - U.S. airlines are collectively burning more than $10 billion in cash per month and averaging fewer than two dozen passengers per domestic flight in the wake of the coronavirus pandemic, industry trade group Airlines for America said in prepared testimony seen by Reuters ahead of a U.S. Senate hearing on Wednesday. Even after grounding more than 3,000 aircraft, or nearly 50% of the active U.S. fleet, the group said its member carriers, which include the four largest U.S. airlines, are averaging just 17 passengers per domestic flight and 29 passengers per international flight. U.S. airlines have canceled hundreds of thousands of flights, including 80% or more of scheduled flights into June as U.S. passenger traffic has fallen by 95% since March.
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By David Shepardson and Tracy Rucinski May 5 (Reuters) - U.S. airlines are collectively burning more than $10 billion in cash per month and averaging fewer than two dozen passengers per domestic flight in the wake of the coronavirus pandemic, industry trade group Airlines for America said in prepared testimony seen by Reuters ahead of a U.S. Senate hearing on Wednesday. Even after grounding more than 3,000 aircraft, or nearly 50% of the active U.S. fleet, the group said its member carriers, which include the four largest U.S. airlines, are averaging just 17 passengers per domestic flight and 29 passengers per international flight. United Airlines Co UAL.O said Monday it plans to cut at least 3,450 management and administrative workers on Oct. 1, or 30% of those workers.
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5926.0
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2020-05-05 00:00:00 UTC
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7 Stocks to Buy From the TrimTabs All Cap US Free‐Cash‐Flow ETF
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AAL
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https://www.nasdaq.com/articles/7-stocks-to-buy-from-the-trimtabs-all-cap-us-free-cash-flow-etf-2020-05-05
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Are you looking for stocks to buy during the novel coronavirus outbreak?
If so, the TrimTabs All Cap US Free-Cash Flow ETF (BATS:TTAC) seems like an excellent place to start. That’s because the actively-managed ETF invests in 100 companies from the Russell 3000 Index that have strong free cash flow growth, excellent balance sheets and are reducing their share counts.
It’s that last part, about reducing share count, that I’m not particularly crazy about. Over the past decade, excessive share repurchases have left many companies in a vulnerable position, struggling to find enough cash to ride out Covid-19.
Take airlines, for example. The top four airlines in the U.S. — Delta Air Lines (NYSE:DAL), United Airlines (NASDAQ:UAL), Southwest Airlines (NYSE:LUV) and American Airlines (NASDAQ:AAL) — spent $43.7 billion on share repurchases since 2012.
Yet now they’re getting a massive bailout from the federal government.
7 Fundamentally Solid Dividend Stocks to Buy
It’s not enough for a business to grow its free cash flow over time. It’s not enough to have a fortress-like balance sheet. The current market environment has proved these statements to be true.
Taking that into consideration, here are seven stocks to buy from the TrimTabs All Cap US Free‐Cash‐Flow ETF:
Facebook (NASDAQ:FB)
Lululemon (NASDAQ:LULU)
Monster Beverage (NASDAQ:MNST)
Boston Beer (NYSE:SAM)
MSCI (NYSE:MSCI)
Zoetis (NYSE:ZTS)
Apple (NASDAQ:AAPL)
A company has to know when to say no. When it comes to share repurchases, airlines clearly didn’t, and they’re back for more handouts.
Stocks to Buy: Facebook (FB)
Source: Wachiwit / Shutterstock.com
The social media giant’s stock is nearly back to where it started the year. On Dec. 31, 2019, it was trading at $205.25.
After revenues and usage outperformed analyst expectations for earnings, FB stock closed May 1, 2020, at $202.57.
But what’s really got me excited about Facebook is the company’s recent $5.7 billion investment in Jio, the largest telecom company in India, owned by Reliance Industries, one of the country’s largest conglomerates.
Other business segments under Jio Platforms include video streaming, online shopping and news aggregation.
While Facebook gets a 9.9% stake in Jio Platforms, it is the ability to monetize the 400 million users of WhatsApp in India that should have most investors excited. Facebook has missed out on many of the growth countries for digital advertising. This investment gets it into the Indian market.
Mark Zuckerberg must be thrilled, and investors should be too.
Facebook increased free cash flow from $17.5 billion in 2017 to $21.2 billion in 2019, suggesting a compound annual growth rate (CAGR) of 10.1%. As for its balance sheet, it finished its last fiscal year with $44.3 billion in net cash.
Lululemon (LULU)
Source: Sorbis / Shutterstock.com
Much like Facebook, Lululemon has regained most of the ground it lost in the mid-March crash. Now trading at $232, it’s only 15% off the all-time high of $266.20. As a result, you’re seeing more investment articles being written about its overstretched valuation.
One such naysayer is InvestorPlace’s Dana Blankenhorn, who believes that no retailer is worth 10 times sales during a pandemic. I must admit he’s got a point.
However, long before this pandemic started, LULU worked its tail off to get its e-commerce business to a place where it could compete with the best in the world, including Nike (NYSE:NKE).
At the end of March, Lululemon reported its fiscal 2019 results. Its direct-to-consumer, e-commerce business increased by 35% during the year to $1.14 billion. DTC now accounts for almost 29% of the company’s overall sales. I can recall saying a few years ago that retailers had to generate at least 10% of their sales online to be worth their salt. Lululemon’s worth a lot of salt.
Though we’re in the middle of a pandemic, everything is relative. If I were forced to own one retail stock at this challenging time, it would be Lululemon. That’s because investors are looking beyond the pandemic to see who’ll be left standing.
7 Fundamentally Solid Dividend Stocks to Buy
Lululemon increased its free cash flow over the past two years from $330 million in 2017 to $390 million in 2019, a compound annual growth rate of 8.7%. As for its balance sheet, it finished its last fiscal year with $350 million in net cash.
Monster Beverage (MNST)
Source: Domagoj Kovacic / Shutterstock.com
Of all the picks from the TrimTabs portfolio, Monster is probably the toughest one to call on. Not because it isn’t a fantastic company — CEO Rodney Sacks has run the company for more than 30 years — but because of the convoluted relationship it has with Coca-Cola (NYSE:KO).
Not only is Coke Monster’s distribution partner, it also owns 19.4% of the company. To make matters worse, Coke launched its own energy drink line in January. KO was able to do so because the agreement between the two companies said that Coca-Cola could only start a competing brand if it had the Coca-Cola name on the can.
Well, it does. It’s called Coca-Cola Energy. I’m sure this is a small comfort for MNST stockholders.
On the one hand, Monster holds 40% of the U.S. energy drink market. Convenience and grocery stores love stocking their products. However, they also like having Coke’s products on the shelves. As Sacks stated in January, there’s only so much shelf space:
“The coolers aren’t rubber. They can’t expand. If you’re going to put Coke Energy in, what comes out? Is it a reduction of Monster?”
However, many retailers, such as Walmart (NYSE:WMT), are stocking Coke energy drinks with other soda-type carbonated beverages and away from the energy-drink section. Monster should continue to be okay.
Monster increased its free cash flow over the past two years from $890 million in 2017 to $1 billion in 2019, a compound annual growth rate of 6%. As for its balance sheet, it finished the last fiscal year with $1.3 billion in net cash.
Boston Beer (SAM)
Source: LunaseeStudios / Shutterstock.com
It’s hard to believe it’s been more than eight years since I recommended investors avoid Molson Coors (NYSE:TAP) and instead buy shares of Boston Beer, the makers of Sam Adams beer, Twisted Tea hard iced tea, Angry Orchard hard cider, and Truly spiked sparkling water.
Since my November 2011 article, SAM stock is up 386% compared to 12% for Molson Coors. I might be getting pummeled in the short-term due to the coronavirus, but long-term, I still know how to pick ‘em.
Of course, a lot’s changed over the past eight years, both in terms of the craft beer market (it’s exploded) and the range of products Boston Beer offers.
Back in 2011, only the beers and hard iced tea existed. It launched the first of many Angry Orchard hard ciders in 2012, and then Truly spiked sparkling water in 2016. It’s no wonder Boston Beer has passed Molson Coors over the years. If the latter’s introduced anything worthwhile since 2011, I sure haven’t heard about it.
InvestorPlace’s Matt McCall recently discussed the short- and long-term trends that will keep Boston Beer growing. Analysts expect it to increase sales by 21% in 2020 and 16% in 2021 with earnings following along.
Boston Beer saw free cash flow over the past two years fall from $100 million in 2017 to $90 million in 2019, for a CAGR of -5.1%. As for its balance sheet, the company finished the last fiscal year with $40 million in net debt.
7 Fundamentally Solid Dividend Stocks to Buy
That might not seem like much to boast about, but compared to Molson Coors, who finished its last fiscal year with $8.6 billion in net debt, Boston Beer’s in a much better place.
MSCI (MSCI)
Source: Pavel Kapysh / Shutterstock.com
If you take a look at 2020’s top-performing stocks, you’ll see companies like Zoom (NASDAQ:ZM), Teladoc Health (NYSE:TDOC) and Moderna (NASDAQ:MRNA) on the list. You wouldn’t expect to see MSCI in the mix.
Yet according to Finviz.com, of 662 companies with a market cap greater than $10 billion, MSCI stock is 24th in year-to-date performance through April 29. That’s right, a company that specializes in indexes is leading the charge in 2020.
MSCI reported first-quarter earnings on April 28. It beat the Zacks Consensus Estimate by 22 cents, delivering $1.90 a share. Compared to last year, earnings increased by 23%. On the top line, it missed by a hair, generating $416.8 million in sales in the first quarter, 0.95% lower than the estimate, but 12% higher than last year.
If you want to talk about performance, MSCI has an annualized total return over the past five years of 40.5%, almost five times better than the Morningstar U.S. Market Index.
MSCI’s free cash flow over the past two years jumped from $360 million in 2017 to $660 million in 2019, a compound annual growth rate of 35.4%%. As for its balance sheet, it finished its last fiscal year with $1.7 billion in net debt.
Of all the stocks from TrimTabs’ holdings, MSCI should be at the top of your list.
Zoetis (ZTS)
Source: Casimiro PT / Shutterstock.com
I’m a pet owner and as a result I tend to pay attention to animal-related businesses. Zoetis is the world’s largest animal health company. It is one of 11 healthcare companies held by TTAC, boasting the largest weighting of those 11 holdings.
Zoetis generates approximately half its revenue from companion animals like cats and dogs. The other half is from production animals such as pigs, cattle and the like. As a drug manufacturer, the company’s products include vaccines, anti-infectives, diagnostic tests and other products.
On April 30, Zoetis launched its latest product: Pet Insurance. Sold by its Pumpkin Insurance Services subsidiary, the company is moving to meet an underserved market in the U.S. Per Pumpkin CEO Alex Douzet:
“Pet insurance is being vastly underutilized by pet owners in America today. With Pumpkin, we are enabling pet parents to proactively prioritize the health of their pets and make the best health decisions for their animals — so we can help ensure our fur children live their longest and healthiest lives.”
According to Zoetis, only 2% of pet owners currently have any kind of insurance for their cats and dogs. During times of financial stress, as we’re currently experiencing, knowing you’ll be able to get your pet the care they need is reassuring.
Cynical investors might think Zoetis is only doing this to make more money, and they’d probably be right. But ultimately, happy pet owners make better customers than sad ones, so its a win-win situation.
7 Fundamentally Solid Dividend Stocks to Buy
Zoetis’ free cash flow over the past two years jumped from $1.12 billion in 2017 to $1.34 billion in 2019, a compound annual growth rate of 9.4%%. As for its balance sheet, the company finished its last fiscal year with $4.7 billion in net debt.
Apple (AAPL)
Source: View Apart / Shutterstock.com
Apple remains one of the world’s biggest generators of free cash flow. That allows it to continue paying dividends and buying back stock at a time when most companies have had to cut those practices altogether.
MarketWatch recently discussed the privileged position Apple finds itself in, suggesting that it would add $100 billion to its share repurchase program when it reported second-quarter earnings while also increasing its quarterly dividend.
“Apple sits on a net-cash balance of about $100 billion and has a goal of becoming net-cash neutral ‘over time’ which analysts believe will allow it to plug away with shareholder returns even as the coronavirus crisis threatens more disruptions to its business. That’s a luxury many companies don’t have in this environment,” said MarketWatch contributor Emily Bary.
Evercore analyst Amit Daryanani believes Apple’s historically done an excellent job buying back its stock. In fiscal 2019, Apple paid an average of $190 a share for its stock. AAPL stock finished the fiscal year around $220, a 16% return on investment. Down about 6% year to date, the company’s performance in last year’s buybacks is sitting at 52%.
I’ve never been a fan of share repurchases, but when you do them as successfully as Apple does, I’m on board. Apple’s business is hurting at the moment, with all of its stores closed. Wisely, it’s saved for a rainy day. Not many can say that.
Apple’s free cash flow over the past two years jumped from $50.8 billion in 2017 to $58.9 billion in 2019, a compound annual growth rate of 7.7%%. As for its balance sheet, it finished its last fiscal year with $7.5 billion in net debt.
Apple should also be at the top of your list.
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 7 Stocks to Buy From the TrimTabs All Cap US Free‐Cash‐Flow ETF appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The top four airlines in the U.S. — Delta Air Lines (NYSE:DAL), United Airlines (NASDAQ:UAL), Southwest Airlines (NYSE:LUV) and American Airlines (NASDAQ:AAL) — spent $43.7 billion on share repurchases since 2012. That’s because the actively-managed ETF invests in 100 companies from the Russell 3000 Index that have strong free cash flow growth, excellent balance sheets and are reducing their share counts. 7 Fundamentally Solid Dividend Stocks to Buy That might not seem like much to boast about, but compared to Molson Coors, who finished its last fiscal year with $8.6 billion in net debt, Boston Beer’s in a much better place.
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The top four airlines in the U.S. — Delta Air Lines (NYSE:DAL), United Airlines (NASDAQ:UAL), Southwest Airlines (NYSE:LUV) and American Airlines (NASDAQ:AAL) — spent $43.7 billion on share repurchases since 2012. Taking that into consideration, here are seven stocks to buy from the TrimTabs All Cap US Free‐Cash‐Flow ETF: Facebook (NASDAQ:FB) Lululemon (NASDAQ:LULU) Monster Beverage (NASDAQ:MNST) Boston Beer (NYSE:SAM) Boston Beer (SAM) Source: LunaseeStudios / Shutterstock.com It’s hard to believe it’s been more than eight years since I recommended investors avoid Molson Coors (NYSE:TAP) and instead buy shares of Boston Beer, the makers of Sam Adams beer, Twisted Tea hard iced tea, Angry Orchard hard cider, and Truly spiked sparkling water.
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The top four airlines in the U.S. — Delta Air Lines (NYSE:DAL), United Airlines (NASDAQ:UAL), Southwest Airlines (NYSE:LUV) and American Airlines (NASDAQ:AAL) — spent $43.7 billion on share repurchases since 2012. 7 Fundamentally Solid Dividend Stocks to Buy Lululemon increased its free cash flow over the past two years from $330 million in 2017 to $390 million in 2019, a compound annual growth rate of 8.7%. Boston Beer (SAM) Source: LunaseeStudios / Shutterstock.com It’s hard to believe it’s been more than eight years since I recommended investors avoid Molson Coors (NYSE:TAP) and instead buy shares of Boston Beer, the makers of Sam Adams beer, Twisted Tea hard iced tea, Angry Orchard hard cider, and Truly spiked sparkling water.
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The top four airlines in the U.S. — Delta Air Lines (NYSE:DAL), United Airlines (NASDAQ:UAL), Southwest Airlines (NYSE:LUV) and American Airlines (NASDAQ:AAL) — spent $43.7 billion on share repurchases since 2012. That’s because the actively-managed ETF invests in 100 companies from the Russell 3000 Index that have strong free cash flow growth, excellent balance sheets and are reducing their share counts. Taking that into consideration, here are seven stocks to buy from the TrimTabs All Cap US Free‐Cash‐Flow ETF: Facebook (NASDAQ:FB) Lululemon (NASDAQ:LULU) Monster Beverage (NASDAQ:MNST) Boston Beer (NYSE:SAM)
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e28af681-115c-4548-91c4-b8e65c9711b8
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5927.0
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2020-05-05 00:00:00 UTC
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EXCLUSIVE-U.S. airlines burn $10 billion a month as traffic plummets
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AAL
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https://www.nasdaq.com/articles/exclusive-u.s.-airlines-burn-%2410-billion-a-month-as-traffic-plummets-2020-05-05
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By David Shepardson and Tracy Rucinski
May 5 (Reuters) - U.S. airlines are collectively burning more than $10 billion in cash per month and averaging fewer than two dozen passengers per domestic flight, industry trade group Airlines for America said in prepared testimony seen by Reuters ahead of a U.S. Senate hearing on Wednesday.
Even after grounding more than 3,000 aircraft, or nearly 50% of the active U.S. fleet, the group said its member carriers, which include the four largest U.S. airlines, are averaging just 17 passengers per domestic flight and 29 passengers per international flight.
"The U.S. airline industry will emerge from this crisis a mere shadow of what it was just three short months ago," the group's chief executive, Nicholas Calio, will say, according to his prepared testimony.
Net booked passengers have fallen by nearly 100% year-on-year, it said, and warned that if air carriers were to refund all tickets, including those purchased under the condition of being nonrefundable or those canceled by a passenger instead of the carrier, "this will result in negative cash balances that will lead to bankruptcy."
(Reporting by David Shepardson in Washington and Tracy Rucinski in Chicago 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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By David Shepardson and Tracy Rucinski May 5 (Reuters) - U.S. airlines are collectively burning more than $10 billion in cash per month and averaging fewer than two dozen passengers per domestic flight, industry trade group Airlines for America said in prepared testimony seen by Reuters ahead of a U.S. Senate hearing on Wednesday. "The U.S. airline industry will emerge from this crisis a mere shadow of what it was just three short months ago," the group's chief executive, Nicholas Calio, will say, according to his prepared testimony. Net booked passengers have fallen by nearly 100% year-on-year, it said, and warned that if air carriers were to refund all tickets, including those purchased under the condition of being nonrefundable or those canceled by a passenger instead of the carrier, "this will result in negative cash balances that will lead to bankruptcy."
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By David Shepardson and Tracy Rucinski May 5 (Reuters) - U.S. airlines are collectively burning more than $10 billion in cash per month and averaging fewer than two dozen passengers per domestic flight, industry trade group Airlines for America said in prepared testimony seen by Reuters ahead of a U.S. Senate hearing on Wednesday. Even after grounding more than 3,000 aircraft, or nearly 50% of the active U.S. fleet, the group said its member carriers, which include the four largest U.S. airlines, are averaging just 17 passengers per domestic flight and 29 passengers per international flight. (Reporting by David Shepardson in Washington and Tracy Rucinski in Chicago 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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By David Shepardson and Tracy Rucinski May 5 (Reuters) - U.S. airlines are collectively burning more than $10 billion in cash per month and averaging fewer than two dozen passengers per domestic flight, industry trade group Airlines for America said in prepared testimony seen by Reuters ahead of a U.S. Senate hearing on Wednesday. Even after grounding more than 3,000 aircraft, or nearly 50% of the active U.S. fleet, the group said its member carriers, which include the four largest U.S. airlines, are averaging just 17 passengers per domestic flight and 29 passengers per international flight. Net booked passengers have fallen by nearly 100% year-on-year, it said, and warned that if air carriers were to refund all tickets, including those purchased under the condition of being nonrefundable or those canceled by a passenger instead of the carrier, "this will result in negative cash balances that will lead to bankruptcy."
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By David Shepardson and Tracy Rucinski May 5 (Reuters) - U.S. airlines are collectively burning more than $10 billion in cash per month and averaging fewer than two dozen passengers per domestic flight, industry trade group Airlines for America said in prepared testimony seen by Reuters ahead of a U.S. Senate hearing on Wednesday. Net booked passengers have fallen by nearly 100% year-on-year, it said, and warned that if air carriers were to refund all tickets, including those purchased under the condition of being nonrefundable or those canceled by a passenger instead of the carrier, "this will result in negative cash balances that will lead to bankruptcy." (Reporting by David Shepardson in Washington and Tracy Rucinski in Chicago 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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4dcfd30b-a0d4-432a-b0c4-3c9efad8d93e
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5928.0
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2020-05-05 00:00:00 UTC
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EXCLUSIVE-U.S. airlines burn through $10 billion a month as traffic plummets
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AAL
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https://www.nasdaq.com/articles/exclusive-u.s.-airlines-burn-through-%2410-billion-a-month-as-traffic-plummets-2020-05-05
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nan
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By David Shepardson and Tracy Rucinski
May 5 (Reuters) - U.S. airlines are collectively burning more than $10 billion in cash a month and averaging fewer than two dozen passengers per domestic flight because of the coronavirus pandemic, industry trade group Airlines for America said in prepared testimony seen by Reuters ahead of a U.S. Senate hearing on Wednesday.
Even after grounding more than 3,000 aircraft, or nearly 50% of the active U.S. fleet, the group said its member carriers, which include the four largest U.S. airlines, were averaging just 17 passengers per domestic flight and 29 passengers per international flight.
"The U.S. airline industry will emerge from this crisis a mere shadow of what it was just three short months ago," the group's chief executive, Nicholas Calio, will say, according to his prepared testimony.
Net booked passengers have fallen by nearly 100% year-on-year, according to the testimony before the Senate Commerce Committee. The group warned that if air carriers were to refund all tickets, including those purchased as nonrefundable or those canceled by a passenger instead of the carrier, "this will result in negative cash balances that will lead to bankruptcy."
Separately, Eric Fanning, who heads the Aerospace Industries Association, will ask Congress to consider providing "temporary and targeted assistance for the ailing aviation manufacturing sector," in testimony made public by the group.
Boeing Co BA.N said last week it would cut 16,000 jobs by the end of the year, while GE Aviation GE.N plans to cut up to 13,000 jobs and airplane supplier Spirit AeroSystems Holdings Inc SPR.N is cutting 1,450 jobs.
Fanning will say at the hearing that "there is strong support in our industry for a private-public partnership to protect jobs and keep at-risk employees on the payroll through the pandemic,"
He will also raise concerns about some Federal Reserve and U.S. Treasury lending programs that have "conditions that prevent companies from accessing this aid with the speed and flexibility required."
'DIFFICULT ROAD AHEAD'
U.S. airlines have canceled hundreds of thousands of flights, including 80% or more of scheduled flights into June as U.S. passenger traffic has fallen by 95% since March. They are conducting additional cleaning measures and requiring all passengers to wear facial coverings.
Calio said airlines "anticipate a long and difficult road ahead. ... History has shown that air transport demand has never experienced a V-shaped recovery from a downturn."
The U.S. Treasury has awarded nearly $25 billion in cash grants to airlines to help them meet payroll costs in exchange for them agreeing not to lay off workers through Sept. 30. Major airlines have warned they will likely need to make additional cuts later this year to respond to a long-term decline in travel demand.
United Airlines Co UAL.O said on Monday it planned to cut at least 3,450 management and administrative workers on Oct. 1, or 30% of those workers and has also said it will reduce hours for thousands of other workers.
The International Association of Machinists and Aerospace Workers sued United on Tuesday in U.S. District Court in New York for what it called an "illegal implementation of drastic pay and benefit cuts."
United said in a statement that the lawsuit was "meritless," and that the reductions were in compliance with the terms of its $5 billion in federal assistance and its collective bargaining agreements.
(Reporting by David Shepardson in Washington and Tracy Rucinski in Chicago; Editing by Matthew Lewis and Peter Cooney)
((tracy.rucinski@thomsonreuters.com +1 312 408-8575 Reuters Messaging: tracy.rucinski.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Separately, Eric Fanning, who heads the Aerospace Industries Association, will ask Congress to consider providing "temporary and targeted assistance for the ailing aviation manufacturing sector," in testimony made public by the group. Fanning will say at the hearing that "there is strong support in our industry for a private-public partnership to protect jobs and keep at-risk employees on the payroll through the pandemic," He will also raise concerns about some Federal Reserve and U.S. Treasury lending programs that have "conditions that prevent companies from accessing this aid with the speed and flexibility required." The International Association of Machinists and Aerospace Workers sued United on Tuesday in U.S. District Court in New York for what it called an "illegal implementation of drastic pay and benefit cuts."
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By David Shepardson and Tracy Rucinski May 5 (Reuters) - U.S. airlines are collectively burning more than $10 billion in cash a month and averaging fewer than two dozen passengers per domestic flight because of the coronavirus pandemic, industry trade group Airlines for America said in prepared testimony seen by Reuters ahead of a U.S. Senate hearing on Wednesday. Even after grounding more than 3,000 aircraft, or nearly 50% of the active U.S. fleet, the group said its member carriers, which include the four largest U.S. airlines, were averaging just 17 passengers per domestic flight and 29 passengers per international flight. U.S. airlines have canceled hundreds of thousands of flights, including 80% or more of scheduled flights into June as U.S. passenger traffic has fallen by 95% since March.
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By David Shepardson and Tracy Rucinski May 5 (Reuters) - U.S. airlines are collectively burning more than $10 billion in cash a month and averaging fewer than two dozen passengers per domestic flight because of the coronavirus pandemic, industry trade group Airlines for America said in prepared testimony seen by Reuters ahead of a U.S. Senate hearing on Wednesday. Even after grounding more than 3,000 aircraft, or nearly 50% of the active U.S. fleet, the group said its member carriers, which include the four largest U.S. airlines, were averaging just 17 passengers per domestic flight and 29 passengers per international flight. United Airlines Co UAL.O said on Monday it planned to cut at least 3,450 management and administrative workers on Oct. 1, or 30% of those workers and has also said it will reduce hours for thousands of other workers.
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By David Shepardson and Tracy Rucinski May 5 (Reuters) - U.S. airlines are collectively burning more than $10 billion in cash a month and averaging fewer than two dozen passengers per domestic flight because of the coronavirus pandemic, industry trade group Airlines for America said in prepared testimony seen by Reuters ahead of a U.S. Senate hearing on Wednesday. U.S. airlines have canceled hundreds of thousands of flights, including 80% or more of scheduled flights into June as U.S. passenger traffic has fallen by 95% since March. United Airlines Co UAL.O said on Monday it planned to cut at least 3,450 management and administrative workers on Oct. 1, or 30% of those workers and has also said it will reduce hours for thousands of other workers.
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03318b77-dac9-47b0-aaab-11ad3c27d8ce
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5929.0
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2020-05-05 00:00:00 UTC
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Carnival Cruises Can Escape the Eye of the Coronavirus Storm
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AAL
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https://www.nasdaq.com/articles/carnival-cruises-can-escape-the-eye-of-the-coronavirus-storm-2020-05-05
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Wall Street is greatly divided on how we should respond to the novel coronavirus. On the one hand, some want to open up the world for business. On the other hand, many fear that it’s too soon. The lines are definitely blurred between medical expertise, governmental ruling, practical living and business investing. It was doctors who forced the reason to shut down the world. The main goal was to save the medical infrastructure. This forced everyone to quarantine at home and that hit hospitality and cruise stocks like Carnival Cruises (NYSE:CCL) very hard. CCL stock is now 80% off its highs.
Source: Ruth Peterkin / Shutterstock.com
But the recovery process for Carnival’s stock is relatively clear.
It starts with a basing process, then a higher-low trend appears. Lastly, there will be a breakout from the lower-high descending trend plaguing the stock.
So far, the selloff reaction in CCL stock makes sense and it was mandated by the authoritative actions. We may know in hindsight if shutting down every region regardless of its particular situation with Covid-19 was smart. But regardless of whether it was justified, governments around the world have no choice but to spend trillions of dollars in order to try and save us from a depression.
The Environment for CCL Stock Has Never Been Worse
If you think that the “D” word is too harsh, then let me remind you that this has never happened before. Besides, don’t take my word for it, last week ECB head Christine Legarde said that Europe was “headed into a recession of unprecedented magnitude.” A depression is not that far off from that. Analysts see dire things and that’s why governments will offer loans at -1% in Europe. That’s not a typo — they mean to pay banks to borrow money.
Likewise, the U.S. is just as scared because their opening salvo for a stimulus program was $2 trillion dollars dwarfing the $750 billion TARP program that was controversial in 2008. This is chump change now, especially if you consider the trillions that the Federal Reserve is spending.
7 Tech Stocks You Should Buy Now Despite Coronavirus Fears
The bottom line is that there are no experts, especially in this field and the only truths lie in the charts. The fundamentals of Carnival Cruise Lines are severely depressed. Looking at the profit-and-loss statement right now means nothing because there are no sales trickling down through it. There are only expenses, so the question now is if it will survive the shutdown or not.
So far there’s no indication of imminent disaster. Moreover, the United States government proved its propensity to save industries like what they did for the airlines, even though they might have done so reluctantly. This is perhaps a phenomenon that exists only because the U.S. is going into an election season. Maybe they learned their lessons from the Lehman incident, where they let one company fail and created a domino effect.
Carnival Stock Chart Support
The fundamental expert opinions on CCL stock vary, so I suggest that you do some homework and form your own opinion. Meanwhile, there is valuable information in Carnival’s stock chart.
It’s clear that those who bought the early dip in CCL stock mid February have found themselves in deep trouble here. The bulls were not able to hold support around $32 per share. The bearish pattern from losing the $40 neckline had strong momentum, so they overshot at the ideal target. The Covid-19 correction made a normal price pattern much worse.
For the last few weeks, and since their earnings, the stock has been trying to stabilize and establish a bottom. It had a double bounce at $8 per share and now it is 75% above that. This is constructive price action, but the bulls still face a lot of resistance at around $16 and $19 per share. Essentially, every ledge that the buyers tried to hold and failed on the way down will become resistance on the way up.
The good news is that with resistance comes opportunity. Those same tough lines I just pointed out, will also be the mini triggers for breakouts to the lines above them. Meaning, if the bulls clear $16, the rally would immediately target $19.
Similarly, above $20 per share, buyers will step in to try to reach $25, and so on. After every breakout there will be fades because nothing rallies forever, especially not a hobbled stock inside an industry like the cruise lines.
But, regardless of where the bulls will break out, the question of when is much more important.
The recovery, especially in leisure and hospitality stocks, like CCL stock will be long. The consensus is that cruise ships will be the last to recover. On the other hand, airliners have a potentially faster recovery timeline because a lot of flying is necessary. Even airline stocks took a beating on Monday after Warren Buffett’s Berkshire Hathaway (NYSE:BRK.A, NYSE:BRK.B) disclosed its exit of its airline positions. For Buffett to do that tells us that the base case for that industry may have changed forever.
This is definitely true for cruises too.
Usually Mr. Buffet gladly buys on dips, but now he may be seeing a sustainable disadvantage. While the coronavirus impact may hamper CCL stock for a long time, my fear is that the global authorities will change the way we live our lives forever, much like they did after the tragedies of 9/11.
I think this is a different threat and it’s too soon to do that. The authorities should better enforce the adoption of strict food handling procedure to stop those breakouts rather than inconvenience seven billion humans who have been doing the right things forever.
It’s a mistake to change everyone’s lives forever, every day from now until eternity based on one market’s violation of logic and health codes. But regardless of what happens in the world more broadly, if you’re interested in investing in Carnival, now’s as good a time as any to pay extra attention to any developments in the cruise-line space.
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 Carnival Cruises Can Escape the Eye of the Coronavirus Storm appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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7 Tech Stocks You Should Buy Now Despite Coronavirus Fears The bottom line is that there are no experts, especially in this field and the only truths lie in the charts. The authorities should better enforce the adoption of strict food handling procedure to stop those breakouts rather than inconvenience seven billion humans who have been doing the right things forever. But regardless of what happens in the world more broadly, if you’re interested in investing in Carnival, now’s as good a time as any to pay extra attention to any developments in the cruise-line space.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Wall Street is greatly divided on how we should respond to the novel coronavirus. This forced everyone to quarantine at home and that hit hospitality and cruise stocks like Carnival Cruises (NYSE:CCL) very hard. Carnival Stock Chart Support The fundamental expert opinions on CCL stock vary, so I suggest that you do some homework and form your own opinion.
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This forced everyone to quarantine at home and that hit hospitality and cruise stocks like Carnival Cruises (NYSE:CCL) very hard. Carnival Stock Chart Support The fundamental expert opinions on CCL stock vary, so I suggest that you do some homework and form your own opinion. While the coronavirus impact may hamper CCL stock for a long time, my fear is that the global authorities will change the way we live our lives forever, much like they did after the tragedies of 9/11.
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This is constructive price action, but the bulls still face a lot of resistance at around $16 and $19 per share. Meaning, if the bulls clear $16, the rally would immediately target $19. While the coronavirus impact may hamper CCL stock for a long time, my fear is that the global authorities will change the way we live our lives forever, much like they did after the tragedies of 9/11.
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5930.0
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2020-05-05 00:00:00 UTC
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Here's How Warren Buffett Is Tackling the Retail Industry in 2020
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AAL
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https://www.nasdaq.com/articles/heres-how-warren-buffett-is-tackling-the-retail-industry-in-2020-2020-05-05
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Investing genius Warren Buffett took the podium for this weekend's Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) shareholder meeting to share his wisdom for three full hours. This company's annual event is always a goldmine for investors who are willing to learn, and the online video-streaming version we got this time was no exception.
Consider, for a moment, the retail industry in 2020: COVID-19 containment efforts are pushing consumers into e-commerce shopping and leaving many traditional bricks-and-mortar store chains struggling to stay afloat. Here's what Buffett had to say about the current state of the retail sector.
Image source: The Motley Fool.
In Buffett's own words
Department stores looked good in 1966, but the world has gone against them. And we had a trading stamp business at one time and we stayed longer than anybody else. But the world left trading stamps behind and that's going to happen with some businesses. That's capitalism. And it will happen to some Berkshire businesses over the next 10 years, in the next 50 years.
We think we'll find more of them that will grow and that Berkshire will grow, but we do not think if you own a great many businesses, that every one is destined for success. That's why I suggest to people that they buy an index fund.
-- Warren Buffett, speaking at Berkshire Hathaway's 2020 annual shareholders' meeting
A brief analysis
Consumer habits are indeed changing as we speak, and it's becoming more and more difficult to run an old-school retail operation. In the last five years, department store giants Macy's (NYSE: M) and J.C. Penney (NYSE: JCP) have seen their stock fall by 92% and 97%, respectively:
JCP data by YCharts.
I call them "giants" out of habit. Macy's is barely a mid-cap stock today, and J.C. Penney is a penny stock with one foot in the bankruptcy office. Buffett, of course, has found ways to invest in a few different types of successful retailers in the modern era. Berkshire owns $1.3 billion worth of Costco (NASDAQ: COST) stock and $1.2 billion of Amazon.com (NASDAQ: AMZN), giving his company exposure to Costco's membership-based warehouse club model and to Amazon's e-commerce expertise.
Many of Berkshire's in-house retail businesses could learn a thing or two from Amazon and Costco, helping Buffett stave off the near-inevitable decay of outdated business plans.
Here's the main point
The larger lesson here is that times will change, and the only businesses that will survive for decades and centuries are those that are willing and able to adapt. Berkshire itself is a prime example of this, constantly molding and managing its portfolio of fully owned companies and minority investments to stay relevant in an ever-changing business environment.
Buffett's favorite holding period is "forever," but he was also quick to sell off all of Berkshire's interests in the airline industry as the coronavirus pandemic turned that sector upside down. Southwest Airlines (NYSE: LUV) and American Airlines (NASDAQ: AAL) might be best of breed in that sector, but Buffett has no interest in owning the top dogs in a sinking and unpredictable industry.
So Buffett backed out of his airline investments and increased his investment in index funds instead. He is also holding on to $137 billion in cash, ready to take action if the coronavirus unveils new investing opportunities by driving the markets down even further. That's another great idea.
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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Anders Bylund owns shares of Amazon. The Motley Fool owns shares of and recommends Amazon, Berkshire Hathaway (B shares), and Southwest Airlines. The Motley Fool recommends Costco Wholesale and recommends the following options: long January 2021 $200 calls on Berkshire Hathaway (B shares), short January 2021 $200 puts on Berkshire Hathaway (B shares), short June 2020 $205 calls on Berkshire Hathaway (B shares), short January 2022 $1940 calls on Amazon, and long January 2022 $1920 calls on Amazon. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Southwest Airlines (NYSE: LUV) and American Airlines (NASDAQ: AAL) might be best of breed in that sector, but Buffett has no interest in owning the top dogs in a sinking and unpredictable industry. Consider, for a moment, the retail industry in 2020: COVID-19 containment efforts are pushing consumers into e-commerce shopping and leaving many traditional bricks-and-mortar store chains struggling to stay afloat. Berkshire itself is a prime example of this, constantly molding and managing its portfolio of fully owned companies and minority investments to stay relevant in an ever-changing business environment.
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Southwest Airlines (NYSE: LUV) and American Airlines (NASDAQ: AAL) might be best of breed in that sector, but Buffett has no interest in owning the top dogs in a sinking and unpredictable industry. -- Warren Buffett, speaking at Berkshire Hathaway's 2020 annual shareholders' meeting A brief analysis Consumer habits are indeed changing as we speak, and it's becoming more and more difficult to run an old-school retail operation. The Motley Fool owns shares of and recommends Amazon, Berkshire Hathaway (B shares), and Southwest Airlines.
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Southwest Airlines (NYSE: LUV) and American Airlines (NASDAQ: AAL) might be best of breed in that sector, but Buffett has no interest in owning the top dogs in a sinking and unpredictable industry. Many of Berkshire's in-house retail businesses could learn a thing or two from Amazon and Costco, helping Buffett stave off the near-inevitable decay of outdated business plans. The Motley Fool owns shares of and recommends Amazon, Berkshire Hathaway (B shares), and Southwest Airlines.
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Southwest Airlines (NYSE: LUV) and American Airlines (NASDAQ: AAL) might be best of breed in that sector, but Buffett has no interest in owning the top dogs in a sinking and unpredictable industry. Investing genius Warren Buffett took the podium for this weekend's Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) shareholder meeting to share his wisdom for three full hours. In the last five years, department store giants Macy's (NYSE: M) and J.C. Penney (NYSE: JCP) have seen their stock fall by 92% and 97%, respectively: JCP data by YCharts.
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c652e0b6-46a9-45c4-838a-4da789e830d7
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5931.0
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2020-05-04 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-2020-05-04
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What happened
Airline shares are under pressure again on Monday after Warren Buffett over the weekend announced that Berkshire Hathaway has dumped its sizable positions in Delta Air Lines (NYSE: DAL), Southwest Airlines (NYSE: LUV), American Airlines Group (NASDAQ: AAL), and United Airlines Holdings (NASDAQ: UAL), walking away from the industry completely.
Shares of Delta, American, and United all opened down more than 14%, while Southwest was off 9.3%. Other airlines also got caught up in the sell-off, with Alaska Air Group (NYSE: ALK), JetBlue Airways (NASDAQ: JBLU), Hawaiian Holdings (NASDAQ: HA), and Spirit Airlines (NYSE: SAVE) all opening down by double digits.
Image source: Getty Images.
The stocks recovered some of those early losses by late morning, but it looks like another day of underperforming the market for the airlines.
So what
As of year's end, Berkshire Hathaway was one of the largest holders of shares of all four of the major U.S. airlines, which together account for about 80% of total domestic capacity. But the COVID-19 pandemic has altered the flight trajectory of the industry, causing travel demand to plunge and leaving airlines scrambling to cut costs and avoid bankruptcy.
Buffett, speaking during Berkshire's virtual annual meeting over the weekend, said the company has exited its airline positions.
"I just decided that I'd made a mistake," Buffett said. "The world has changed for airlines, and I wish them well."
Buffett isn't telling investors anything they didn't already know: Airline shares have lost between 50% and 72% year to date. But hearing that an investor who famously advocates being "greedy when others are fearful" is throwing in the towel and taking a loss has an understandably chilling effect.
Airline data by YCharts.
Now what
I think Buffett is correct in his overall assessment of the industry. Airline traffic is currently down 90% year over year, and the industry after reporting miserable results in the first quarter are likely to post even worse numbers in the second. While traffic should bounce back somewhat once the pandemic is contained, we are likely going to be in a recession by then, and it is unclear how much or how quickly airlines will recover.
We are likely at the beginning of a long difficult period for the airlines, where even in the best-case scenarios travel demand takes years to recover to pre-pandemic levels.
That said, I believe Buffett is painting with an overly broad brush by dumping the entire industry. Among the stocks Berkshire owned, American is the most vulnerable, due to its massive debt load, and United is troubled. But Southwest and Delta appear well positioned to survive whatever the future may bring, and for patient investors willing to ride out the storm, they offer the best opportunities.
Among the smaller carriers, Alaska Air looks like a survivor, and Spirit is both vulnerable because of its significant debt but could be well poised in a recession because it can make money by charging fares that are lower than most of its rivals. Hawaiian has a niche network and high costs due to its reliance on transpacific flying, while JetBlue does best when consumers are willing to pay up for premium accommodations and could find it tough to attract those travelers in the current environment.
If nothing else, Buffett's sales are a fresh reminder of just how deep the airline industry's wounds are. On Monday at least, a lot of investors are following the Oracle of Omaha's cue and selling out of airline positions.
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Lou Whiteman owns shares of Berkshire Hathaway (B shares), Delta Air Lines, and Spirit Airlines. The Motley Fool owns shares of and recommends Berkshire Hathaway (B shares), Delta Air Lines, Southwest Airlines, and Spirit Airlines. The Motley Fool recommends Alaska Air Group, Hawaiian Holdings, 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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What happened Airline shares are under pressure again on Monday after Warren Buffett over the weekend announced that Berkshire Hathaway has dumped its sizable positions in Delta Air Lines (NYSE: DAL), Southwest Airlines (NYSE: LUV), American Airlines Group (NASDAQ: AAL), and United Airlines Holdings (NASDAQ: UAL), walking away from the industry completely. But the COVID-19 pandemic has altered the flight trajectory of the industry, causing travel demand to plunge and leaving airlines scrambling to cut costs and avoid bankruptcy. Among the smaller carriers, Alaska Air looks like a survivor, and Spirit is both vulnerable because of its significant debt but could be well poised in a recession because it can make money by charging fares that are lower than most of its rivals.
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What happened Airline shares are under pressure again on Monday after Warren Buffett over the weekend announced that Berkshire Hathaway has dumped its sizable positions in Delta Air Lines (NYSE: DAL), Southwest Airlines (NYSE: LUV), American Airlines Group (NASDAQ: AAL), and United Airlines Holdings (NASDAQ: UAL), walking away from the industry completely. The Motley Fool owns shares of and recommends Berkshire Hathaway (B shares), Delta Air Lines, Southwest Airlines, and Spirit Airlines. The Motley Fool recommends Alaska Air Group, Hawaiian Holdings, 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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What happened Airline shares are under pressure again on Monday after Warren Buffett over the weekend announced that Berkshire Hathaway has dumped its sizable positions in Delta Air Lines (NYSE: DAL), Southwest Airlines (NYSE: LUV), American Airlines Group (NASDAQ: AAL), and United Airlines Holdings (NASDAQ: UAL), walking away from the industry completely. The Motley Fool owns shares of and recommends Berkshire Hathaway (B shares), Delta Air Lines, Southwest Airlines, and Spirit Airlines. The Motley Fool recommends Alaska Air Group, Hawaiian Holdings, 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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What happened Airline shares are under pressure again on Monday after Warren Buffett over the weekend announced that Berkshire Hathaway has dumped its sizable positions in Delta Air Lines (NYSE: DAL), Southwest Airlines (NYSE: LUV), American Airlines Group (NASDAQ: AAL), and United Airlines Holdings (NASDAQ: UAL), walking away from the industry completely. See the 10 stocks *Stock Advisor returns as of April 16, 2020 Lou Whiteman owns shares of Berkshire Hathaway (B shares), Delta Air Lines, and Spirit Airlines. The Motley Fool owns shares of and recommends Berkshire Hathaway (B shares), Delta Air Lines, Southwest Airlines, and Spirit Airlines.
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5932.0
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2020-05-04 00:00:00 UTC
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Noteworthy Monday Option Activity: AAL, CHGG, SAM
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AAL
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https://www.nasdaq.com/articles/noteworthy-monday-option-activity%3A-aal-chgg-sam-2020-05-04
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Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in American Airlines Group Inc (Symbol: AAL), where a total volume of 396,687 contracts has been traded thus far today, a contract volume which is representative of approximately 39.7 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 45.9% of AAL's average daily trading volume over the past month, of 86.4 million shares. Particularly high volume was seen for the $8 strike put option expiring May 08, 2020, with 69,835 contracts trading so far today, representing approximately 7.0 million underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $8 strike highlighted in orange:
Chegg Inc (Symbol: CHGG) saw options trading volume of 7,856 contracts, representing approximately 785,600 underlying shares or approximately 44% of CHGG's average daily trading volume over the past month, of 1.8 million shares. Particularly high volume was seen for the $50 strike call option expiring May 15, 2020, with 2,078 contracts trading so far today, representing approximately 207,800 underlying shares of CHGG. Below is a chart showing CHGG's trailing twelve month trading history, with the $50 strike highlighted in orange:
And Boston Beer Co Inc (Symbol: SAM) options are showing a volume of 678 contracts thus far today. That number of contracts represents approximately 67,800 underlying shares, working out to a sizeable 43.7% of SAM's average daily trading volume over the past month, of 155,135 shares. Particularly high volume was seen for the $280 strike put option expiring June 19, 2020, with 100 contracts trading so far today, representing approximately 10,000 underlying shares of SAM. Below is a chart showing SAM's trailing twelve month trading history, with the $280 strike highlighted in orange:
For the various different available expirations for AAL options, CHGG options, or SAM options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Particularly high volume was seen for the $8 strike put option expiring May 08, 2020, with 69,835 contracts trading so far today, representing approximately 7.0 million underlying shares of AAL. Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in American Airlines Group Inc (Symbol: AAL), where a total volume of 396,687 contracts has been traded thus far today, a contract volume which is representative of approximately 39.7 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 45.9% of AAL's average daily trading volume over the past month, of 86.4 million shares.
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Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in American Airlines Group Inc (Symbol: AAL), where a total volume of 396,687 contracts has been traded thus far today, a contract volume which is representative of approximately 39.7 million underlying shares (given that every 1 contract represents 100 underlying shares). Particularly high volume was seen for the $8 strike put option expiring May 08, 2020, with 69,835 contracts trading so far today, representing approximately 7.0 million underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $8 strike highlighted in orange: Chegg Inc (Symbol: CHGG) saw options trading volume of 7,856 contracts, representing approximately 785,600 underlying shares or approximately 44% of CHGG's average daily trading volume over the past month, of 1.8 million shares.
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Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in American Airlines Group Inc (Symbol: AAL), where a total volume of 396,687 contracts has been traded thus far today, a contract volume which is representative of approximately 39.7 million underlying shares (given that every 1 contract represents 100 underlying shares). Particularly high volume was seen for the $8 strike put option expiring May 08, 2020, with 69,835 contracts trading so far today, representing approximately 7.0 million underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $8 strike highlighted in orange: Chegg Inc (Symbol: CHGG) saw options trading volume of 7,856 contracts, representing approximately 785,600 underlying shares or approximately 44% of CHGG's average daily trading volume over the past month, of 1.8 million shares.
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Below is a chart showing AAL's trailing twelve month trading history, with the $8 strike highlighted in orange: Chegg Inc (Symbol: CHGG) saw options trading volume of 7,856 contracts, representing approximately 785,600 underlying shares or approximately 44% of CHGG's average daily trading volume over the past month, of 1.8 million shares. Below is a chart showing SAM's trailing twelve month trading history, with the $280 strike highlighted in orange: For the various different available expirations for AAL options, CHGG options, or SAM options, visit StockOptionsChannel.com. Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in American Airlines Group Inc (Symbol: AAL), where a total volume of 396,687 contracts has been traded thus far today, a contract volume which is representative of approximately 39.7 million underlying shares (given that every 1 contract represents 100 underlying shares).
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5933.0
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2020-05-04 00:00:00 UTC
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4 Top Stock Trades for Tuesday: AAL, UAL, LYFT, BABA
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AAL
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https://www.nasdaq.com/articles/4-top-stock-trades-for-tuesday%3A-aal-ual-lyft-baba-2020-05-04
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
After a rocky start, many equities bounced off the morning lows on Monday. With that in mind, let’s look at a few top stock trades for Tuesday.
Top Stock Trades for Tomorrow No. 1: American Airlines (AAL)
Click to Enlarge
Source: Chart courtesy of StockCharts.com
American Airlines (NASDAQ:AAL) and its peers came under heavy pressure on Monday. That’s as Warren Buffett says he has exited his positions in the airline industry.
Before Monday, AAL stock had a 52-week low of $9.09. On Monday, shares dropped as low as $9.15 before reversing higher. The fact that the low is holding for now is encouraging.
However, that doesn’t mean it will continue to do so. A close below $9.09 would be discouraging for AAL stock and drop the stock into no man’s land until this level is recovered.
7 Fundamentally Solid Dividend Stocks to Buy
If it holds, the bulls will have something to cling to. On the upside, though, we want to see shares close above the 20-day moving average and end its streak of lower highs (purple lines). That would be a very encouraging development.
Top Stock Trades for Tomorrow No. 2: United Airlines (UAL)
Click to Enlarge
Source: Chart courtesy of StockCharts.com
United Airlines (NASDAQ:UAL) has a similar look. However, unlike American, United is not testing its lows. In fact, the stock continues to put in a series higher lows.
It would be very bullish to see the stock reclaim last week’s high over $31.84. Doing so this week is unlikely, but it would also thrust the stock over the 20-day moving average and end its streak of lower highs, as it’s wedging into a tighter and tighter range.
UAL becomes a risk-off situation should it break below $21.50, though. It will put the double-tap low of $17.80 in play, which was hit in back-to-back sessions in late March.
Top Stock Trades for Tomorrow No. 3: Lyft (LYFT)
Click to Enlarge
Source: Chart courtesy of StockCharts.com
The writing was on the wall with Lyft (NASDAQ:LYFT). Obviously we did not know it was going to drop nearly 9% on Monday.
However, Friday’s 9.8% decline was a devastating blow. That should have shaken out short-term longs, as a number of levels were violated. Lyft blew through its 38.2% retracement, 20-day and 50-day moving averages and out of its rising wedge formation.
While this alone did not mean doom was headed its way Monday morning, it meant that there was no reason to be long on this name.
It now puts the 23.6% retracement near $24 in play. Below that, and $22.50 is likely. Remember, this name rallied more than 140% from the lows, so some unwind can be expected.
May’s 3 Best Tech Stocks to Trade Long and Short
On the upside, however, look for the 20-day and 50-day moving averages to act as resistance.
Top Stock Trades for Tomorrow No. 4: Alibaba (BABA)
Click to Enlarge
Source: Chart courtesy of StockCharts.com
Alibaba (NYSE:BABA) had a nice consolidation channel going for it (blue lines). Amid that mellow pullback, shares were finding support at the declining 50-day and 20-day moving averages.
By most accounts, Alibaba stock looked relatively bullish. However, like Lyft, bulls should have been shaken out with Friday’s decline.
Yes, the 200-day moving average and 38.2% retracement held as support. However, to break below so many patterns and key levels should have been enough to force many long traders to exit. Now these levels are breaking as well, putting $180 in play.
It’s too early to look at $170 without $180 being violated, but that would be the next level down below that. From here, bulls should bide their time until BABA either declines further into support or reclaims the 200-day moving average and the 38.2% retracement.
Back over this area could put the 50-day moving average and $200-plus on the table.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, he did not hold a position in any of the aforementioned securities.
The post 4 Top Stock Trades for Tuesday: AAL, UAL, LYFT, BABA 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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Click to Enlarge Source: Chart courtesy of StockCharts.com American Airlines (NASDAQ:AAL) and its peers came under heavy pressure on Monday. 1: American Airlines (AAL) Before Monday, AAL stock had a 52-week low of $9.09.
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Click to Enlarge Source: Chart courtesy of StockCharts.com American Airlines (NASDAQ:AAL) and its peers came under heavy pressure on Monday. The post 4 Top Stock Trades for Tuesday: AAL, UAL, LYFT, BABA appeared first on InvestorPlace. 1: American Airlines (AAL)
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A close below $9.09 would be discouraging for AAL stock and drop the stock into no man’s land until this level is recovered. The post 4 Top Stock Trades for Tuesday: AAL, UAL, LYFT, BABA appeared first on InvestorPlace. 1: American Airlines (AAL)
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Before Monday, AAL stock had a 52-week low of $9.09. The post 4 Top Stock Trades for Tuesday: AAL, UAL, LYFT, BABA appeared first on InvestorPlace. 1: American Airlines (AAL)
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2020-05-04 00:00:00 UTC
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Wall Street snaps 2-day slump on lift from tech titans
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AAL
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https://www.nasdaq.com/articles/wall-street-snaps-2-day-slump-on-lift-from-tech-titans-2020-05-04
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For a live blog on the U.S. stock market, click LIVE/ or type LIVE/ in a news window
Microsoft, Apple, Amazon provide boost
Energy sector gains, helped by rising oil
Pompeo says 'significant evidence' virus emerged from lab
Airline shares tumble as Berkshire exits
Indexes up: Dow 0.11%, S&P 500 0.42%, Nasdaq up 1.23%
Adds California reopening news in paragraph 4
By Lewis Krauskopf
May 4 (Reuters) - U.S. stocks ended higher on Monday as increases in large tech and internet companies and oil price gains outweighed concerns about the latest U.S.-China tensions and downbeat sentiment from the annual meeting of Warren Buffett's Berkshire Hathaway.
Major U.S. indexes opened lower but moved higher throughout the afternoon to snap two-day losing streaks.
Stocks have rebounded sharply since late March from the coronavirus-fueled sell-off, helped by massive monetary and fiscal stimulus. Investors are now watching efforts by a number of states trying to spark their economies by easing restrictions put in place to fight the outbreak.
On Monday, New York Governor Andrew Cuomo outlined a phased reopening of business in the state hardest hit by the COVID-19 pandemic. California Governor Gavin Newsom said that retail businesses in the state may begin reopening as early as this week.
“Can you lift restrictions and begin to phase in economic activity and yet keep the number of cases at bay? That is what the market is focused on right now,” said Quincy Krosby, chief market strategist at Prudential Financial in Newark, New Jersey.
The Dow Jones Industrial Average .DJI rose 26.07 points, or 0.11%, to 23,749.76, the S&P 500 .SPX gained 12.03 points, or 0.42%, to 2,842.74 and the Nasdaq Composite .IXIC added 105.77 points, or 1.23%, to 8,710.72.
Gains in Microsoft MSFT.O, Apple AAPL.O and Amazon AMZN.O were the biggest lifts for the S&P 500, following mixed reaction last week to reports from big tech names.
Energy .SPNY was the best performing S&P 500 sector, rising 3.7%, as oil prices gained.
Shares of Delta Air Lines Inc DAL.N, American Airlines Group Inc AAL.O, Southwest Airlines Co LUV.N and United Airlines Holdings Inc UAL.O fell between 5% and 8%, among the biggest decliners on the S&P 500 after Berkshire Hathaway dumped stakes in major U.S. airlines.
Shares of Berkshire BRKa.N itself fell 2.6% and weighed on the S&P 500 after the conglomerate posted a record quarterly net loss of nearly $50 billion.
Buffett, whose comments are closely followed by investors, acknowledged at Berkshire's annual meeting on Saturday that the pandemic could significantly damage the economy and his investments.
“His narrative was relatively sober compared to his posture over the years," said Emily Roland, co-chief investment strategist at John Hancock Investment Management.
A flare-up in U.S.-China tensions also pressured the market. Secretary of State Mike Pompeo said on Sunday there was "a significant amount of evidence" that the new coronavirus emerged from a Chinese laboratory. An editorial in China's Global Times said he was "bluffing".
Investors are also digesting a difficult corporate results season. With more than half of S&P 500 companies reporting so far, first-quarter earnings are expected to have fallen 12.5%, according to Refinitiv data.
Shares of Tyson Foods Inc TSN.N tumbled 7.8% after the company said the coronavirus crisis will continue to idle U.S. meat plants and slow production as it reported lower-than-expected earnings and revenue for the quarter.
Data on Monday showed new orders for U.S.-made goods suffered a record decline in March and could sink further as disruptions from the coronavirus fracture supply chains and depress exports.
Declining issues outnumbered advancing ones on the NYSE by a 1.09-to-1 ratio; on Nasdaq, a 1.14-to-1 ratio favored advancers.
The S&P 500 posted no new 52-week highs and three new lows; the Nasdaq Composite recorded 18 new highs and 14 new lows.
About 9.5 billion shares changed hands in U.S. exchanges, below the 12.1 billion-share daily average over the last 20 sessions.
(Additional reporting by Shreyashi Sanyal and Medha Singh in Bengaluru; Editing by Arun Koyyur, Aurora Ellis, Jonathan Oatis and David Gregorio)
((lewis.krauskopf@thomsonreuters.com; 646-223-6082; Reuters Messaging: lewis.krauskopf.thomsonreuters.com@reuters.net, Twitter: @LKrauskopf))
The views and 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 Air Lines Inc DAL.N, American Airlines Group Inc AAL.O, Southwest Airlines Co LUV.N and United Airlines Holdings Inc UAL.O fell between 5% and 8%, among the biggest decliners on the S&P 500 after Berkshire Hathaway dumped stakes in major U.S. airlines. For a live blog on the U.S. stock market, click LIVE/ or type LIVE/ in a news window Microsoft, Apple, Amazon provide boost Energy sector gains, helped by rising oil Pompeo says 'significant evidence' virus emerged from lab Airline shares tumble as Berkshire exits Indexes up: Dow 0.11%, S&P 500 0.42%, Nasdaq up 1.23% Adds California reopening news in paragraph 4 By Lewis Krauskopf May 4 (Reuters) - U.S. stocks ended higher on Monday as increases in large tech and internet companies and oil price gains outweighed concerns about the latest U.S.-China tensions and downbeat sentiment from the annual meeting of Warren Buffett's Berkshire Hathaway. Shares of Tyson Foods Inc TSN.N tumbled 7.8% after the company said the coronavirus crisis will continue to idle U.S. meat plants and slow production as it reported lower-than-expected earnings and revenue for the quarter.
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Shares of Delta Air Lines Inc DAL.N, American Airlines Group Inc AAL.O, Southwest Airlines Co LUV.N and United Airlines Holdings Inc UAL.O fell between 5% and 8%, among the biggest decliners on the S&P 500 after Berkshire Hathaway dumped stakes in major U.S. airlines. For a live blog on the U.S. stock market, click LIVE/ or type LIVE/ in a news window Microsoft, Apple, Amazon provide boost Energy sector gains, helped by rising oil Pompeo says 'significant evidence' virus emerged from lab Airline shares tumble as Berkshire exits Indexes up: Dow 0.11%, S&P 500 0.42%, Nasdaq up 1.23% Adds California reopening news in paragraph 4 By Lewis Krauskopf May 4 (Reuters) - U.S. stocks ended higher on Monday as increases in large tech and internet companies and oil price gains outweighed concerns about the latest U.S.-China tensions and downbeat sentiment from the annual meeting of Warren Buffett's Berkshire Hathaway. Energy .SPNY was the best performing S&P 500 sector, rising 3.7%, as oil prices gained.
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Shares of Delta Air Lines Inc DAL.N, American Airlines Group Inc AAL.O, Southwest Airlines Co LUV.N and United Airlines Holdings Inc UAL.O fell between 5% and 8%, among the biggest decliners on the S&P 500 after Berkshire Hathaway dumped stakes in major U.S. airlines. For a live blog on the U.S. stock market, click LIVE/ or type LIVE/ in a news window Microsoft, Apple, Amazon provide boost Energy sector gains, helped by rising oil Pompeo says 'significant evidence' virus emerged from lab Airline shares tumble as Berkshire exits Indexes up: Dow 0.11%, S&P 500 0.42%, Nasdaq up 1.23% Adds California reopening news in paragraph 4 By Lewis Krauskopf May 4 (Reuters) - U.S. stocks ended higher on Monday as increases in large tech and internet companies and oil price gains outweighed concerns about the latest U.S.-China tensions and downbeat sentiment from the annual meeting of Warren Buffett's Berkshire Hathaway. (Additional reporting by Shreyashi Sanyal and Medha Singh in Bengaluru; Editing by Arun Koyyur, Aurora Ellis, Jonathan Oatis and David Gregorio) ((lewis.krauskopf@thomsonreuters.com; 646-223-6082; Reuters Messaging: lewis.krauskopf.thomsonreuters.com@reuters.net, Twitter: @LKrauskopf)) The views and 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 Air Lines Inc DAL.N, American Airlines Group Inc AAL.O, Southwest Airlines Co LUV.N and United Airlines Holdings Inc UAL.O fell between 5% and 8%, among the biggest decliners on the S&P 500 after Berkshire Hathaway dumped stakes in major U.S. airlines. For a live blog on the U.S. stock market, click LIVE/ or type LIVE/ in a news window Microsoft, Apple, Amazon provide boost Energy sector gains, helped by rising oil Pompeo says 'significant evidence' virus emerged from lab Airline shares tumble as Berkshire exits Indexes up: Dow 0.11%, S&P 500 0.42%, Nasdaq up 1.23% Adds California reopening news in paragraph 4 By Lewis Krauskopf May 4 (Reuters) - U.S. stocks ended higher on Monday as increases in large tech and internet companies and oil price gains outweighed concerns about the latest U.S.-China tensions and downbeat sentiment from the annual meeting of Warren Buffett's Berkshire Hathaway. Shares of Berkshire BRKa.N itself fell 2.6% and weighed on the S&P 500 after the conglomerate posted a record quarterly net loss of nearly $50 billion.
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5935.0
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2020-05-04 00:00:00 UTC
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GLOBAL MARKETS-Global shares fall on U.S.-Sino spat but Wall Street rebounds
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https://www.nasdaq.com/articles/global-markets-global-shares-fall-on-u.s.-sino-spat-but-wall-street-rebounds-2020-05-04
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By Herbert Lash
NEW YORK, May 4 (Reuters) - The dollar rose on risk aversion and global stock markets fell on Monday as U.S.-Chinese bickering over the origin of the coronavirus outbreak sparked fear of a new trade war, but Wall Street rebounded as the lifting of lockdowns in some U.S. states boosted optimism.
U.S. stocks rallied at then end of the session, with the Nasdaq gaining more than 1 percent, as hard-hit New York became the latest state to announce a phased reopening of business activity, starting with select industries.
"The key turnaround this afternoon stemmed from (the) California governor's optimistic tone," said Edward Moya, senior market analyst at OANDA. "Some regional openings in California helped financial markets end the day on a positive note."
"People want to believe that things are going to get better," said Rick Meckler, a partner at Cherry Lane Investments in New Vernon, New Jersey. "All these announcements of state plans to reopen has given some optimism to investors that things can only improve from here."
Oil prices jumped higher after settlement prices showed modest gains, but the strengthening safe-haven dollar and gold held their ground.
A rise in risk aversion came as business surveys showed Asian and European factory activity in April fell deeper into contraction, adding to a dismal outlook as government lockdowns to contain the pandemic froze global production and slashed demand.
U.S. Secretary of State Mike Pompeo on Sunday said there was "a significant amount of evidence" that the coronavirus emerged from a Chinese laboratory, remarks that rattled investors though he did not dispute U.S. intelligence agencies' conclusion that it was not manmade.
An editorial in China's Global Times said he was "bluffing" and called on the United States to present its evidence.
"The headlines of further tariffs and supply-chain disruptions come at a time where global growth expectations are already fragile," said Simon Harvey, currency analyst at broker Monex Europe.
New orders for U.S.-made goods suffered a record decline in March and could sink further as pandemic-related disruptions fracture supply chains and depress exports, the Commerce Department said in a series of increasingly bleak economic data reports.
IHS Markit's final manufacturing PMI for the euro zone sank to 33.4, its lowest since the survey began in mid-1997 and far below the 50-point line dividing growth from contraction.
The pan-European STOXX 600 index .STOXX closed down 2.65%, while MSCI's gauge of stocks across the globe .MIWD00000PUS shed 0.66%.
Wall Street rose after the Dow industrials and S&P 500 traded lower almost the entire session.
The Dow Jones Industrial Average .DJI rose 26.07 points, or 0.11%, to 23,749.76. The S&P 500 .SPX gained 12.03 points, or 0.42%, to 2,842.74 and the Nasdaq Composite .IXIC added 105.77 points, or 1.23%, to 8,710.72.
The Nasdaq moved the most.
"If you're going to buy this market, psychologically you want to buy the companies that you think can really do well," Meckler said. "This has been a very hard market to bottom fish in, to buy the wounded names."
Airline stocks got hammered after billionaire Warren Buffett's Berkshire Hathaway dumped stakes in major U.S. airlines, but they pared losses as the market rebounded.
Shares of Delta Air Lines Inc DAL.N, American Airlines Group Inc AAL.O, Southwest Airlines Co LUV.N and United Airlines Holdings Inc UAL.O fell between 5.1% and 7.7%, as Buffett said "the world has changed" for the aviation industry.
Earlier, MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS fell 2.5%, pulled down by the Hang Seng .HSI in Hong Kong.
The dollar rose against most major currencies. The dollar index =USD rose 0.288%, with the euro EUR= down 0.76% to $1.0899.
The Japanese yen JPY= strengthened 0.25% versus the greenback at 106.72 per dollar.
Gold rose as the U.S.-China tensions over the coronavirus outbreak kindled fears of a new trade war, leading investors to seek safe havens.
U.S. gold futures GCcv1 settled 0.7% higher at $1,713.30 an ounce.
Simon Black, head of investment management at wealth management firm Dolfin said investors were also adjusting their forecasts for the depth of the economic damage the pandemic will inflict.
"It's also the economic reality sinking in," he said, adding that a rebound by global equities of over 20% from lows hit in March was not likely to be sustainable.
Global coronavirus cases have surpassed 3.5 million and deaths have neared a quarter of a million, according to a Reuters tally.
Brent crude futures LCOc1 rose 76 cents to settle up at $27.20 a barrel, while U.S. crude futures CLc1 added 61 cents to settle at $20.39 a barrel. U.S. WTI later added about $1 a barrel, and Brent almost the same.
Benchmark 10-year notes US10YT=RR last rose 4/32 in price to yield 0.6289%.
Rebound IMAGEhttps://tmsnrt.rs/35skqck
(Reporting by Herbert Lash; editing by Jonathan Oatis)
((herb.lash@thomsonreuters.com; 1-646-223-6019; Reuters Messaging: herb.lash.reuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shares of Delta Air Lines Inc DAL.N, American Airlines Group Inc AAL.O, Southwest Airlines Co LUV.N and United Airlines Holdings Inc UAL.O fell between 5.1% and 7.7%, as Buffett said "the world has changed" for the aviation industry. By Herbert Lash NEW YORK, May 4 (Reuters) - The dollar rose on risk aversion and global stock markets fell on Monday as U.S.-Chinese bickering over the origin of the coronavirus outbreak sparked fear of a new trade war, but Wall Street rebounded as the lifting of lockdowns in some U.S. states boosted optimism. A rise in risk aversion came as business surveys showed Asian and European factory activity in April fell deeper into contraction, adding to a dismal outlook as government lockdowns to contain the pandemic froze global production and slashed demand.
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Shares of Delta Air Lines Inc DAL.N, American Airlines Group Inc AAL.O, Southwest Airlines Co LUV.N and United Airlines Holdings Inc UAL.O fell between 5.1% and 7.7%, as Buffett said "the world has changed" for the aviation industry. By Herbert Lash NEW YORK, May 4 (Reuters) - The dollar rose on risk aversion and global stock markets fell on Monday as U.S.-Chinese bickering over the origin of the coronavirus outbreak sparked fear of a new trade war, but Wall Street rebounded as the lifting of lockdowns in some U.S. states boosted optimism. Oil prices jumped higher after settlement prices showed modest gains, but the strengthening safe-haven dollar and gold held their ground.
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Shares of Delta Air Lines Inc DAL.N, American Airlines Group Inc AAL.O, Southwest Airlines Co LUV.N and United Airlines Holdings Inc UAL.O fell between 5.1% and 7.7%, as Buffett said "the world has changed" for the aviation industry. By Herbert Lash NEW YORK, May 4 (Reuters) - The dollar rose on risk aversion and global stock markets fell on Monday as U.S.-Chinese bickering over the origin of the coronavirus outbreak sparked fear of a new trade war, but Wall Street rebounded as the lifting of lockdowns in some U.S. states boosted optimism. U.S. stocks rallied at then end of the session, with the Nasdaq gaining more than 1 percent, as hard-hit New York became the latest state to announce a phased reopening of business activity, starting with select industries.
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Shares of Delta Air Lines Inc DAL.N, American Airlines Group Inc AAL.O, Southwest Airlines Co LUV.N and United Airlines Holdings Inc UAL.O fell between 5.1% and 7.7%, as Buffett said "the world has changed" for the aviation industry. By Herbert Lash NEW YORK, May 4 (Reuters) - The dollar rose on risk aversion and global stock markets fell on Monday as U.S.-Chinese bickering over the origin of the coronavirus outbreak sparked fear of a new trade war, but Wall Street rebounded as the lifting of lockdowns in some U.S. states boosted optimism. U.S. stocks rallied at then end of the session, with the Nasdaq gaining more than 1 percent, as hard-hit New York became the latest state to announce a phased reopening of business activity, starting with select industries.
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5936.0
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2020-05-04 00:00:00 UTC
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The Dow Rose 26 Points Because an Oil Rebound Lifted Stocks
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https://www.nasdaq.com/articles/the-dow-rose-26-points-because-an-oil-rebound-lifted-stocks-2020-05-04
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U.S. stocks recovered from early losses to finish the day with gains. A rebound in oil prices and energy stocks helped support stocks later in the session. The Dow Jones Industrial Average added 26.07 points, or 0.11%, to close at 23,749.76. The S&P 500 is up 12.03 points, or 0.42%, to end at 2842.74, and the Nasdaq Composite gain 105.77 points, or 1.23%, to close at 8710.71.
Many U.S. states have started to reopen as they loosen stay-at-home restrictions and allow some businesses to open doors again. It remains unclear whether economic activities in those regions will recover quickly, as American households now face the choice between health risks and returning to normal life.
The number of Covid-19-related deaths in the U.S. stood at about 68,000 on Monday. President Donald Trump said Sunday that the death count could reach 100,000, significantly higher than the number he forecast in March.
But there are hopes in the battle against the virus. Gilead Sciences (ticker: GILD) CEO Daniel O’Day said on Sunday that the company’s antiviral drug Remdesivir will be available to doctors and patients as early as this week after receiving emergency approval from the Food and Drug Administration last week. Swiss pharmaceutical giant Roche (ROG.SW) has been given emergency-use authorization from the FDA for its Covid-19 antibody test. At least a dozen of potential coronavirus vaccines are also under development, with some British scientists hoping to determine by June whether the vaccine they are working on is effective. President Trump said over the weekend that he expects a coronavirus vaccine to be available by the end of 2020.
Investors have become increasingly concerned about renewed tensions between the U.S. and China as the two countries play the blame game around the origins of the Covid-19 virus. Secretary of State Mike Pompeo said over the weekend that he had seen “enormous evidence” for assertions that Covid-19 originated at a lab in Wuhan, although the Office of Director of National Intelligence said last week that the virus wasn’t man-made or genetically modified.
https://asset.barrons.com/dj-mg/dice/barrons-staffpicks-2d590600-c862-4394-b9d3-66b48c376d60/inset.json
President Donald Trump said on Sunday that he has little doubt that Beijing misled the world about the scale and risk of the coronavirus, and hinted last week that he could impose tariffs or other retaliatory measures against China to punish Beijing for its handling of the outbreak. Shortages in critical medical and other equipment have also fueled calls for the U.S. to bring supply chains back home.
New orders for U.S. manufactured goods tumbled 10.3% month-by-month to $51 billion in March, marking the fastest monthly decline on record, the Census Department said Monday. Transportation-related orders were hit the hardest, as travel was essentially halted and supply chains were disrupted since mid-March. Excluding those, overall orders fell 3.7% from a month earlier.
The investment environment is so tough, not even legendary investor Warren Buffett can win. Buffett’s Berkshire Hathaway (ticker: BRK.A) reported a $49.7 billion loss in the first quarter due to a sharp drop in the value of its stock portfolio, the company said over the weekend. Buffett also said he exited significant investments in U.S. airline stocks. United Airlines Holdings stock (UAL) fell 5.1% on Monday, American Airlines Group stock (AAL) slumped 7.7%, Southwest Airlines stock (LUV) dropped 5.7%, and Delta Air Lines stock (DAL) ended 6.4% lower. Berkshire class A stock fell 2.5%.
Write to Evie Liu at evie.liu@barrons.com
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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United Airlines Holdings stock (UAL) fell 5.1% on Monday, American Airlines Group stock (AAL) slumped 7.7%, Southwest Airlines stock (LUV) dropped 5.7%, and Delta Air Lines stock (DAL) ended 6.4% lower. It remains unclear whether economic activities in those regions will recover quickly, as American households now face the choice between health risks and returning to normal life. Secretary of State Mike Pompeo said over the weekend that he had seen “enormous evidence” for assertions that Covid-19 originated at a lab in Wuhan, although the Office of Director of National Intelligence said last week that the virus wasn’t man-made or genetically modified.
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United Airlines Holdings stock (UAL) fell 5.1% on Monday, American Airlines Group stock (AAL) slumped 7.7%, Southwest Airlines stock (LUV) dropped 5.7%, and Delta Air Lines stock (DAL) ended 6.4% lower. U.S. stocks recovered from early losses to finish the day with gains. President Donald Trump said Sunday that the death count could reach 100,000, significantly higher than the number he forecast in March.
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United Airlines Holdings stock (UAL) fell 5.1% on Monday, American Airlines Group stock (AAL) slumped 7.7%, Southwest Airlines stock (LUV) dropped 5.7%, and Delta Air Lines stock (DAL) ended 6.4% lower. https://asset.barrons.com/dj-mg/dice/barrons-staffpicks-2d590600-c862-4394-b9d3-66b48c376d60/inset.json President Donald Trump said on Sunday that he has little doubt that Beijing misled the world about the scale and risk of the coronavirus, and hinted last week that he could impose tariffs or other retaliatory measures against China to punish Beijing for its handling of the outbreak. Buffett’s Berkshire Hathaway (ticker: BRK.A) reported a $49.7 billion loss in the first quarter due to a sharp drop in the value of its stock portfolio, the company said over the weekend.
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United Airlines Holdings stock (UAL) fell 5.1% on Monday, American Airlines Group stock (AAL) slumped 7.7%, Southwest Airlines stock (LUV) dropped 5.7%, and Delta Air Lines stock (DAL) ended 6.4% lower. U.S. stocks recovered from early losses to finish the day with gains. President Donald Trump said Sunday that the death count could reach 100,000, significantly higher than the number he forecast in March.
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5937.0
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2020-05-04 00:00:00 UTC
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Colombian miner Cerrejon ramps up operations after virus-led reduction
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AAL
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https://www.nasdaq.com/articles/colombian-miner-cerrejon-ramps-up-operations-after-virus-led-reduction-2020-05-04
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BOGOTA, May 4 (Reuters) - Colombian coal miner Cerrejon said on Monday it has started ramping up operations following a temporary reduction as part of efforts to slow the spread of the novel coronavirus.
Cerrejon, which is owned equally by BHP Group BHP.AX, Anglo American AAL.L and Glencore GLEN.L, had reduced its operations along with other mining companies in the Andean country to contain the spread of COVID-19, the respiratory illness that has infected more than 7,600 people in Colombia and killed and 340 dead.
"We are aware of the positive impact Cerrejon has on the regional economy and to the country, that is why we have proposed the gradual re-starting of our operations under strict security and control measures," Juan Consuegra, Cerrejon vice president and contingency team leader, said in a statement.
Cerrejon, which exported 26.3 million tonnes of coal in 2019, in March reduced its operations and established a contingency team to ensure compliance with environmental rules, care for equipment and infrastructure, and make sure export obligations were met.
While operations were reduced 80% of Cerrejon staff had access to vacation time. Later on, people who were not part of the contingency team and could also not work from home received paid leave, the company said.
In recent production reports, Anglo American and Glencore reported that first-quarter output at Cerrejon dropped by around 10% versus the first quarter of 2019.
In its report, Glencore also said production volume levels from its Colombian coal operations - which also includes its Prodeco unit - could be at risk of further reductions due to pressure on European coal pricing.
Cerrejon is an integrated mining and transportation complex in Colombia's La Guajira province, in the northeastern part of the country, which includes an open-pit mine, a 150-km (93-mile railway line and a Caribbean port.
Although Colombia is in mandatory preventive isolation until May 11, mining activities can continue as they are considered to be an essential activity for the development of the country.
Drummond, another thermal coal producer, re-started its operations last month.
(Reporting by Oliver Griffin and Luis Jaime Acosta Editing by Paul Simao)
((Oliver.Griffin@thomsonreuters.com; +57 304-583-8931;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Cerrejon, which is owned equally by BHP Group BHP.AX, Anglo American AAL.L and Glencore GLEN.L, had reduced its operations along with other mining companies in the Andean country to contain the spread of COVID-19, the respiratory illness that has infected more than 7,600 people in Colombia and killed and 340 dead. BOGOTA, May 4 (Reuters) - Colombian coal miner Cerrejon said on Monday it has started ramping up operations following a temporary reduction as part of efforts to slow the spread of the novel coronavirus. Later on, people who were not part of the contingency team and could also not work from home received paid leave, the company said.
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Cerrejon, which is owned equally by BHP Group BHP.AX, Anglo American AAL.L and Glencore GLEN.L, had reduced its operations along with other mining companies in the Andean country to contain the spread of COVID-19, the respiratory illness that has infected more than 7,600 people in Colombia and killed and 340 dead. Cerrejon, which exported 26.3 million tonnes of coal in 2019, in March reduced its operations and established a contingency team to ensure compliance with environmental rules, care for equipment and infrastructure, and make sure export obligations were met. In recent production reports, Anglo American and Glencore reported that first-quarter output at Cerrejon dropped by around 10% versus the first quarter of 2019.
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Cerrejon, which is owned equally by BHP Group BHP.AX, Anglo American AAL.L and Glencore GLEN.L, had reduced its operations along with other mining companies in the Andean country to contain the spread of COVID-19, the respiratory illness that has infected more than 7,600 people in Colombia and killed and 340 dead. "We are aware of the positive impact Cerrejon has on the regional economy and to the country, that is why we have proposed the gradual re-starting of our operations under strict security and control measures," Juan Consuegra, Cerrejon vice president and contingency team leader, said in a statement. Cerrejon, which exported 26.3 million tonnes of coal in 2019, in March reduced its operations and established a contingency team to ensure compliance with environmental rules, care for equipment and infrastructure, and make sure export obligations were met.
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Cerrejon, which is owned equally by BHP Group BHP.AX, Anglo American AAL.L and Glencore GLEN.L, had reduced its operations along with other mining companies in the Andean country to contain the spread of COVID-19, the respiratory illness that has infected more than 7,600 people in Colombia and killed and 340 dead. "We are aware of the positive impact Cerrejon has on the regional economy and to the country, that is why we have proposed the gradual re-starting of our operations under strict security and control measures," Juan Consuegra, Cerrejon vice president and contingency team leader, said in a statement. In its report, Glencore also said production volume levels from its Colombian coal operations - which also includes its Prodeco unit - could be at risk of further reductions due to pressure on European coal pricing.
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5938.0
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2020-05-04 00:00:00 UTC
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Wall St snaps two-day slump as tech titans give lift
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https://www.nasdaq.com/articles/wall-st-snaps-two-day-slump-as-tech-titans-give-lift-2020-05-04
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For a live blog on the U.S. stock market, click LIVE/ or type LIVE/ in a news window
Microsoft, Apple, Amazon provide boost
Energy sector gains, helped by rising oil
Pompeo says 'significant evidence' virus emerged from lab
Airline shares tumble as Berkshire exits
Indexes up: Dow 0.11%, S&P 500 0.42%, Nasdaq up 1.23%
Updates to close of U.S. market
By Lewis Krauskopf
May 4 (Reuters) - U.S. stocks ended higher on Monday as increases in large tech and internet companies and oil price gains outweighed concerns sparked by fresh U.S.-China tensions and downbeat sentiment from the annual meeting of Warren Buffett's Berkshire Hathaway.
Major U.S. indexes opened lower but moved higher throughout the afternoon to snap two-day losing streaks.
Stocks have rebounded sharply since late March from the coronavirus-fueled sell-off, helped by massive monetary and fiscal stimulus. Investors are now focused on the impact from a number of states easing restrictions designed to stop the outbreak in order to aid their economies.
New York Governor Andrew Cuomo on Monday outlined a phased reopening of business activity in the state hardest hit by the COVID-19 pandemic.
“Can you lift restrictions and begin to phase in economic activity and yet keep the number of cases at bay? That is what the market is focused on right now,” said Quincy Krosby, chief market strategist at Prudential Financial in Newark, New Jersey.
The Dow Jones Industrial Average .DJI rose 26.07 points, or 0.11%, to 23,749.76, the S&P 500 .SPX gained 12.03 points, or 0.42%, to 2,842.74 and the Nasdaq Composite .IXIC added 105.77 points, or 1.23%, to 8,710.72.
Gains in Microsoft MSFT.O, Apple AAPL.O and Amazon AMZN.O were the biggest lifts for the S&P 500, following mixed reaction last week to reports from big tech names.
Energy .SPNY was the best performing S&P 500 sector, rising 3.7%, as oil prices gained.
Shares of Delta Air Lines Inc DAL.N, American Airlines Group Inc AAL.O, Southwest Airlines Co LUV.N and United Airlines Holdings Inc UAL.O fell between 5% and 8% and were among the biggest decliners on the S&P 500 after a move by Berkshire Hathaway to dump stakes in major U.S. airlines.
Shares of Berkshire BRKa.N itself fell 2.6% and weighed on the S&P 500 after the conglomerate posted a record quarterly net loss of nearly $50 billion.
Buffett, whose comments are closely followed by investors, acknowledged at Berkshire's annual meeting on Saturday that the global pandemic could significantly damage the economy and his investments.
“His narrative was relatively sober compared to his posture over the years," said Emily Roland, co-chief investment strategist at John Hancock Investment Management.
A flare-up in U.S.-China tensions presents another challenge to the market. Secretary of State Mike Pompeo said on Sunday there was "a significant amount of evidence" that the new coronavirus emerged from a Chinese laboratory. An editorial in China's Global Times said he was "bluffing".
Investors are also digesting a difficult corporate results season. With more than half of S&P 500 companies reporting results so far, first-quarter earnings are expected to have fallen 12.5%, according to Refinitiv data.
Shares of Tyson Foods Inc TSN.N tumbled 7.8% after the company said the coronavirus crisis will continue to idle U.S. meat plants and slow production as it reported lower-than-expected earnings and revenue for the quarter.
Data on Monday showed new orders for U.S.-made goods suffered a record decline in March and could sink further as disruptions from the coronavirus fracture supply chains and depress exports.
Declining issues outnumbered advancing ones on the NYSE by a 1.09-to-1 ratio; on Nasdaq, a 1.14-to-1 ratio favored advancers.
The S&P 500 posted no new 52-week highs and three new lows; the Nasdaq Composite recorded 18 new highs and 14 new lows.
About 9.5 billion shares changed hands in U.S. exchanges, below the 12.1 billion-share daily average over the last 20 sessions.
(Additional reporting by Shreyashi Sanyal and Medha Singh in Bengaluru; Editing by Arun Koyyur, Aurora Ellis and Jonathan Oatis)
((lewis.krauskopf@thomsonreuters.com; 646-223-6082; Reuters Messaging: lewis.krauskopf.thomsonreuters.com@reuters.net, Twitter: @LKrauskopf))
The views and 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 Air Lines Inc DAL.N, American Airlines Group Inc AAL.O, Southwest Airlines Co LUV.N and United Airlines Holdings Inc UAL.O fell between 5% and 8% and were among the biggest decliners on the S&P 500 after a move by Berkshire Hathaway to dump stakes in major U.S. airlines. For a live blog on the U.S. stock market, click LIVE/ or type LIVE/ in a news window Microsoft, Apple, Amazon provide boost Energy sector gains, helped by rising oil Pompeo says 'significant evidence' virus emerged from lab Airline shares tumble as Berkshire exits Indexes up: Dow 0.11%, S&P 500 0.42%, Nasdaq up 1.23% Updates to close of U.S. market By Lewis Krauskopf May 4 (Reuters) - U.S. stocks ended higher on Monday as increases in large tech and internet companies and oil price gains outweighed concerns sparked by fresh U.S.-China tensions and downbeat sentiment from the annual meeting of Warren Buffett's Berkshire Hathaway. Shares of Tyson Foods Inc TSN.N tumbled 7.8% after the company said the coronavirus crisis will continue to idle U.S. meat plants and slow production as it reported lower-than-expected earnings and revenue for the quarter.
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Shares of Delta Air Lines Inc DAL.N, American Airlines Group Inc AAL.O, Southwest Airlines Co LUV.N and United Airlines Holdings Inc UAL.O fell between 5% and 8% and were among the biggest decliners on the S&P 500 after a move by Berkshire Hathaway to dump stakes in major U.S. airlines. For a live blog on the U.S. stock market, click LIVE/ or type LIVE/ in a news window Microsoft, Apple, Amazon provide boost Energy sector gains, helped by rising oil Pompeo says 'significant evidence' virus emerged from lab Airline shares tumble as Berkshire exits Indexes up: Dow 0.11%, S&P 500 0.42%, Nasdaq up 1.23% Updates to close of U.S. market By Lewis Krauskopf May 4 (Reuters) - U.S. stocks ended higher on Monday as increases in large tech and internet companies and oil price gains outweighed concerns sparked by fresh U.S.-China tensions and downbeat sentiment from the annual meeting of Warren Buffett's Berkshire Hathaway. Energy .SPNY was the best performing S&P 500 sector, rising 3.7%, as oil prices gained.
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Shares of Delta Air Lines Inc DAL.N, American Airlines Group Inc AAL.O, Southwest Airlines Co LUV.N and United Airlines Holdings Inc UAL.O fell between 5% and 8% and were among the biggest decliners on the S&P 500 after a move by Berkshire Hathaway to dump stakes in major U.S. airlines. For a live blog on the U.S. stock market, click LIVE/ or type LIVE/ in a news window Microsoft, Apple, Amazon provide boost Energy sector gains, helped by rising oil Pompeo says 'significant evidence' virus emerged from lab Airline shares tumble as Berkshire exits Indexes up: Dow 0.11%, S&P 500 0.42%, Nasdaq up 1.23% Updates to close of U.S. market By Lewis Krauskopf May 4 (Reuters) - U.S. stocks ended higher on Monday as increases in large tech and internet companies and oil price gains outweighed concerns sparked by fresh U.S.-China tensions and downbeat sentiment from the annual meeting of Warren Buffett's Berkshire Hathaway. Buffett, whose comments are closely followed by investors, acknowledged at Berkshire's annual meeting on Saturday that the global pandemic could significantly damage the economy and his investments.
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Shares of Delta Air Lines Inc DAL.N, American Airlines Group Inc AAL.O, Southwest Airlines Co LUV.N and United Airlines Holdings Inc UAL.O fell between 5% and 8% and were among the biggest decliners on the S&P 500 after a move by Berkshire Hathaway to dump stakes in major U.S. airlines. For a live blog on the U.S. stock market, click LIVE/ or type LIVE/ in a news window Microsoft, Apple, Amazon provide boost Energy sector gains, helped by rising oil Pompeo says 'significant evidence' virus emerged from lab Airline shares tumble as Berkshire exits Indexes up: Dow 0.11%, S&P 500 0.42%, Nasdaq up 1.23% Updates to close of U.S. market By Lewis Krauskopf May 4 (Reuters) - U.S. stocks ended higher on Monday as increases in large tech and internet companies and oil price gains outweighed concerns sparked by fresh U.S.-China tensions and downbeat sentiment from the annual meeting of Warren Buffett's Berkshire Hathaway. Shares of Berkshire BRKa.N itself fell 2.6% and weighed on the S&P 500 after the conglomerate posted a record quarterly net loss of nearly $50 billion.
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c5653fc2-88aa-4cb0-84ff-8c6f6848e1b2
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5939.0
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2020-05-04 00:00:00 UTC
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S&P 500, Dow drop as Buffett ditches airlines, China tensions flare
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AAL
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https://www.nasdaq.com/articles/sp-500-dow-drop-as-buffett-ditches-airlines-china-tensions-flare-2020-05-04
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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
Pompeo says "significant evidence" virus emerged from lab
Airlines tumble as Berkshire exits
Tyson drops after results miss
Shares of tech titans buoy Nasdaq
Dow down 0.7%, S&P 500 falls 0.3%, Nasdaq up 0.39%
Updates to mid afternoon
By Lewis Krauskopf
May 4 (Reuters) - The S&P 500 and Dow Jones dropped for the third session on Monday following a U.S.-China dispute over the origins of the coronavirus outbreak and a move by billionaire Warren Buffett's Berkshire Hathaway to dump stakes in major U.S. airlines.
Shares of Delta Air Lines Inc DAL.N, American Airlines Group Inc AAL.O, Southwest Airlines Co LUV.N and United Airlines Holdings Inc UAL.O fell between 7% and 10% and were among the biggest decliners on the S&P 500 after Buffett said "the world has changed" for the aviation industry.
Shares of Berkshire itself fell 3.0% and weighed on the S&P 500 after the conglomerate posted a record quarterly net loss of nearly $50 billion.
Buffett, whose comments are closely followed by investors, acknowledged at Berkshire's annual meeting on Saturday that the global pandemic could significantly damage the economy and his investments.
“His narrative was relatively sober compared to his posture over the years," said Emily Roland, co-chief investment strategist at John Hancock Investment Management. “His comments were relatively cautious compared to what we have heard from him before.”
The Dow Jones Industrial Average .DJI fell 166.92 points, or 0.7%, to 23,556.77, and the S&P 500 .SPX lost 8.36 points, or 0.30%, to 2,822.35.
The Nasdaq Composite .IXIC added 33.18 points, or 0.39%, to 8,638.13, helped by gains in shares of Microsoft MSFT.O and Amazon AMZN.O.
A massive rebound in stocks fueled by monetary and fiscal stimulus has paused in recent days as investors watch whether the number of states easing restrictions designed to stop the outbreak leads to a resurgence in virus cases.
A flare-up in U.S.-China tensions presents another challenge to the market. Secretary of State Mike Pompeo said on Sunday there was "a significant amount of evidence" that the new coronavirus emerged from a Chinese laboratory. An editorial in China's Global Times said he was "bluffing".
Investors are also digesting a difficult corporate results season. With more than half of S&P 500 companies reporting results so far, first-quarter earnings are expected to have fallen 12.5%, according to Refinitiv data.
“There is still a lot of uncertainty, a lot of companies scrapping guidance, and I think that is contributing to the murky environment for equities,” Roland said.
Shares of Tyson Foods Inc TSN.N tumbled 9.1% after the company said the coronavirus crisis will continue to idle U.S. meat plants and slow production as it reported lower-than-expected earnings and revenue for the quarter.
Data on Monday showed new orders for U.S.-made goods suffered a record decline in March and could sink further as disruptions from the coronavirus fracture supply chains and depress exports.
Declining issues outnumbered advancing ones on the NYSE by a 2.09-to-1 ratio; on Nasdaq, a 1.53-to-1 ratio favored decliners.
The S&P 500 posted no new 52-week highs and three new lows; the Nasdaq Composite recorded 13 new highs and 12 new lows.
(Additional reporting by Shreyashi Sanyal and Medha Singh in Bengaluru; Editing by Saumyadeb Chakrabarty, Shounak Dasgupta and Arun Koyyur and Aurora Ellis)
((lewis.krauskopf@thomsonreuters.com; 646-223-6082; Reuters Messaging: lewis.krauskopf.thomsonreuters.com@reuters.net, Twitter: @LKrauskopf))
The views and 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 Air Lines Inc DAL.N, American Airlines Group Inc AAL.O, Southwest Airlines Co LUV.N and United Airlines Holdings Inc UAL.O fell between 7% and 10% and were among the biggest decliners on the S&P 500 after Buffett said "the world has changed" for the aviation industry. For a live blog on the U.S. stock market, click LIVE/ or type LIVE/ in a news window Pompeo says "significant evidence" virus emerged from lab Airlines tumble as Berkshire exits Tyson drops after results miss Shares of tech titans buoy Nasdaq Dow down 0.7%, S&P 500 falls 0.3%, Nasdaq up 0.39% Updates to mid afternoon By Lewis Krauskopf May 4 (Reuters) - The S&P 500 and Dow Jones dropped for the third session on Monday following a U.S.-China dispute over the origins of the coronavirus outbreak and a move by billionaire Warren Buffett's Berkshire Hathaway to dump stakes in major U.S. airlines. A massive rebound in stocks fueled by monetary and fiscal stimulus has paused in recent days as investors watch whether the number of states easing restrictions designed to stop the outbreak leads to a resurgence in virus cases.
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Shares of Delta Air Lines Inc DAL.N, American Airlines Group Inc AAL.O, Southwest Airlines Co LUV.N and United Airlines Holdings Inc UAL.O fell between 7% and 10% and were among the biggest decliners on the S&P 500 after Buffett said "the world has changed" for the aviation industry. For a live blog on the U.S. stock market, click LIVE/ or type LIVE/ in a news window Pompeo says "significant evidence" virus emerged from lab Airlines tumble as Berkshire exits Tyson drops after results miss Shares of tech titans buoy Nasdaq Dow down 0.7%, S&P 500 falls 0.3%, Nasdaq up 0.39% Updates to mid afternoon By Lewis Krauskopf May 4 (Reuters) - The S&P 500 and Dow Jones dropped for the third session on Monday following a U.S.-China dispute over the origins of the coronavirus outbreak and a move by billionaire Warren Buffett's Berkshire Hathaway to dump stakes in major U.S. airlines. “His comments were relatively cautious compared to what we have heard from him before.” The Dow Jones Industrial Average .DJI fell 166.92 points, or 0.7%, to 23,556.77, and the S&P 500 .SPX lost 8.36 points, or 0.30%, to 2,822.35.
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Shares of Delta Air Lines Inc DAL.N, American Airlines Group Inc AAL.O, Southwest Airlines Co LUV.N and United Airlines Holdings Inc UAL.O fell between 7% and 10% and were among the biggest decliners on the S&P 500 after Buffett said "the world has changed" for the aviation industry. For a live blog on the U.S. stock market, click LIVE/ or type LIVE/ in a news window Pompeo says "significant evidence" virus emerged from lab Airlines tumble as Berkshire exits Tyson drops after results miss Shares of tech titans buoy Nasdaq Dow down 0.7%, S&P 500 falls 0.3%, Nasdaq up 0.39% Updates to mid afternoon By Lewis Krauskopf May 4 (Reuters) - The S&P 500 and Dow Jones dropped for the third session on Monday following a U.S.-China dispute over the origins of the coronavirus outbreak and a move by billionaire Warren Buffett's Berkshire Hathaway to dump stakes in major U.S. airlines. Buffett, whose comments are closely followed by investors, acknowledged at Berkshire's annual meeting on Saturday that the global pandemic could significantly damage the economy and his investments.
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Shares of Delta Air Lines Inc DAL.N, American Airlines Group Inc AAL.O, Southwest Airlines Co LUV.N and United Airlines Holdings Inc UAL.O fell between 7% and 10% and were among the biggest decliners on the S&P 500 after Buffett said "the world has changed" for the aviation industry. For a live blog on the U.S. stock market, click LIVE/ or type LIVE/ in a news window Pompeo says "significant evidence" virus emerged from lab Airlines tumble as Berkshire exits Tyson drops after results miss Shares of tech titans buoy Nasdaq Dow down 0.7%, S&P 500 falls 0.3%, Nasdaq up 0.39% Updates to mid afternoon By Lewis Krauskopf May 4 (Reuters) - The S&P 500 and Dow Jones dropped for the third session on Monday following a U.S.-China dispute over the origins of the coronavirus outbreak and a move by billionaire Warren Buffett's Berkshire Hathaway to dump stakes in major U.S. airlines. The Nasdaq Composite .IXIC added 33.18 points, or 0.39%, to 8,638.13, helped by gains in shares of Microsoft MSFT.O and Amazon AMZN.O.
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71a09439-e680-46be-8b04-c9b7a4551555
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5940.0
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2020-05-04 00:00:00 UTC
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Monday Sector Laggards: Materials, Industrial
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AAL
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https://www.nasdaq.com/articles/monday-sector-laggards%3A-materials-industrial-2020-05-04
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nan
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nan
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Looking at the sectors faring worst as of midday Monday, shares of Materials companies are underperforming other sectors, showing a 2.0% loss. Within that group, Arconic Corp (Symbol: ARNC) and Sealed Air Corp (Symbol: SEE) are two large stocks that are lagging, showing a loss of 31.2% and 4.3%, respectively. Among the high volume ETFs, one ETF closely following materials stocks is the Materials Select Sector SPDR ETF (Symbol: XLB), which is down 0.4% on the day, and down 17.19% year-to-date. Arconic Corp, meanwhile, is down 71.89% year-to-date, and Sealed Air Corp, is down 31.79% year-to-date. SEE makes up approximately 1.0% of the underlying holdings of XLB.
The next worst performing sector is the Industrial sector, showing a 1.9% loss. Among large Industrial stocks, American Airlines Group Inc (Symbol: AAL) and Delta Air Lines Inc (Symbol: DAL) are the most notable, showing a loss of 10.2% and 8.8%, respectively. One ETF closely tracking Industrial stocks is the Industrial Select Sector SPDR ETF (XLI), which is down 2.0% in midday trading, and down 24.62% on a year-to-date basis. American Airlines Group Inc, meanwhile, is down 66.32% year-to-date, and Delta Air Lines Inc , is down 61.72% year-to-date. Combined, AAL and DAL make up approximately 1.9% of the underlying holdings of XLI.
Comparing these stocks and ETFs on a trailing twelve month basis, below is a relative stock price performance chart, with each of the symbols shown in a different color as labeled in the legend at the bottom:
Here's a snapshot of how the S&P 500 components within the various sectors are faring in afternoon trading on Monday. As you can see, two sectors are up on the day, while six sectors are down.
SECTOR % CHANGE
Energy +0.7%
Utilities +0.1%
Technology & Communications -0.0%
Healthcare -0.4%
Services -0.7%
Consumer Products -0.9%
Financial -1.2%
Industrial -1.9%
Materials -2.0%
10 ETFs With Stocks That Insiders Are Buying »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Combined, AAL and DAL make up approximately 1.9% of the underlying holdings of XLI. Among large Industrial stocks, American Airlines Group Inc (Symbol: AAL) and Delta Air Lines Inc (Symbol: DAL) are the most notable, showing a loss of 10.2% and 8.8%, respectively. Comparing these stocks and ETFs on a trailing twelve month basis, below is a relative stock price performance chart, with each of the symbols shown in a different color as labeled in the legend at the bottom: Here's a snapshot of how the S&P 500 components within the various sectors are faring in afternoon trading on Monday.
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Among large Industrial stocks, American Airlines Group Inc (Symbol: AAL) and Delta Air Lines Inc (Symbol: DAL) are the most notable, showing a loss of 10.2% and 8.8%, respectively. Combined, AAL and DAL make up approximately 1.9% of the underlying holdings of XLI. Among the high volume ETFs, one ETF closely following materials stocks is the Materials Select Sector SPDR ETF (Symbol: XLB), which is down 0.4% on the day, and down 17.19% year-to-date.
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Among large Industrial stocks, American Airlines Group Inc (Symbol: AAL) and Delta Air Lines Inc (Symbol: DAL) are the most notable, showing a loss of 10.2% and 8.8%, respectively. Combined, AAL and DAL make up approximately 1.9% of the underlying holdings of XLI. Among the high volume ETFs, one ETF closely following materials stocks is the Materials Select Sector SPDR ETF (Symbol: XLB), which is down 0.4% on the day, and down 17.19% year-to-date.
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Among large Industrial stocks, American Airlines Group Inc (Symbol: AAL) and Delta Air Lines Inc (Symbol: DAL) are the most notable, showing a loss of 10.2% and 8.8%, respectively. Combined, AAL and DAL make up approximately 1.9% of the underlying holdings of XLI. Within that group, Arconic Corp (Symbol: ARNC) and Sealed Air Corp (Symbol: SEE) are two large stocks that are lagging, showing a loss of 31.2% and 4.3%, respectively.
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69bd60cd-dd08-4b73-9404-c065cdb1e0ce
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5941.0
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2020-05-04 00:00:00 UTC
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S&P 500, Dow dip as Buffett ditches airlines, China tensions flare
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AAL
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https://www.nasdaq.com/articles/sp-500-dow-dip-as-buffett-ditches-airlines-china-tensions-flare-2020-05-04
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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
Pompeo says "significant evidence" virus emerged from lab
Airlines fall as Berkshire exits; Boeing down
Tyson drops after sales warning
High-growth stocks buoy Nasdaq
Dow down 0.96%, S&P 500 falls 0.59%, Nasdaq flat
Adds comments, updates to early afternoon
By Shreyashi Sanyal and Medha Singh
May 4 (Reuters) - The S&P 500 and Dow Jones dropped for the third session on Monday following a U.S.-China spat over the origins of the coronavirus outbreak and billionaire Warren Buffett's Berkshire Hathaway's move to dump stakes in major U.S. airlines.
Shares of Delta Air Lines Inc DAL.N, American Airlines Group Inc AAL.O, Southwest Airlines Co LUV.N and United Airlines Holdings Inc UAL.O fell between 7.8% and 10%, as Buffett said "the world has changed" for the aviation industry.
Berkshire's BRKa.N move also shaved more than 4% off planemaker Boeing Co's BA.N shares. The S&P 1500 airlines sub-index .SPCOMAIR plunged 8% and was on track for its worst day in more than a month.
Shares of the conglomerate fell 3% and weighed on the financials index .SPSY after it posted a record quarterly loss of nearly $50 billion.
Analysts said Buffett's relatively bleak reading of the market had hit home with investors.
"The fact that he had sold airline stocks was perhaps a realization that he sees a slow recovery for the economy for a while at least," said James Ragan, director of Wealth Management Research at D.A. Davidson in Seattle.
Nine of the major 11 S&P 500 sectors were trading lower, also pressured by comments from U.S. Secretary of State Mike Pompeo that there was "a significant amount of evidence" the coronavirus emerged from a Chinese laboratory. An editorial in China's Global Times said he was "bluffing".
All three major stock indexes have clawed back more than 11% in April, but the rally is likely to be tested in the coming weeks as investors trying to assess the pace of an economic recovery with states starting to emerge from lockdowns.
High-growth stocks such as Apple Inc AAPL.O, Microsoft Corp MSFT.O and Amazon.com Inc AMZN.O, seen less disrupted by the pandemic, kept the Nasdaq index .IXIC afloat.
"Market leadership has been concentrated in growth stocks deemed to be relatively immune to the COVID-19 virus," said Marc Chaikin, founder of Chaikin Analytics in Philadelphia.
At 13:11 p.m. ET the Dow Jones Industrial Average .DJI was down 228.87 points, or 0.96%, at 23,494.82, the S&P 500 .SPX was down 16.72 points, or 0.59%, at 2,813.99 and the Nasdaq Composite .IXIC was up 3.41 points, or 0.04%, at 8,608.36.
Data on Monday showed new orders for U.S.-made goods fell more than expected in March and could sink further as the health crisis upends supply chains and exports.
With more than half of the S&P 500 companies having reported results so far, analysts now see first-quarter S&P 500 earnings falling 12.5% from a year earlier, and an even sharper 39% decline in the second quarter.
Tyson Foods Inc TSN.N tumbled 8.4% as the company said it would temporarily close plants as needed and forecast meat sales to fall in the second half of the year as shutdowns hammer restaurants and other food outlets.
Declining issues outnumbered advancers for a 2.19-to-1 ratio on the NYSE and for a 1.65-to-1 ratio on the Nasdaq.
The S&P index recorded no new 52-week high and three new lows, while the Nasdaq recorded 13 new highs and 11 new lows.
(Reporting by Shreyashi Sanyal and Medha Singh in Bengaluru; Editing by Saumyadeb Chakrabarty, Shounak Dasgupta and Arun Koyyur)
((Shreyashi.Sanyal@thomsonreuters.com; +1 646 223 8780; +91 961 144 3740; Twitter: https://twitter.com/s_shreyashi))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shares of Delta Air Lines Inc DAL.N, American Airlines Group Inc AAL.O, Southwest Airlines Co LUV.N and United Airlines Holdings Inc UAL.O fell between 7.8% and 10%, as Buffett said "the world has changed" for the aviation industry. For a live blog on the U.S. stock market, click LIVE/ or type LIVE/ in a news window Pompeo says "significant evidence" virus emerged from lab Airlines fall as Berkshire exits; Boeing down Tyson drops after sales warning High-growth stocks buoy Nasdaq Dow down 0.96%, S&P 500 falls 0.59%, Nasdaq flat Adds comments, updates to early afternoon By Shreyashi Sanyal and Medha Singh May 4 (Reuters) - The S&P 500 and Dow Jones dropped for the third session on Monday following a U.S.-China spat over the origins of the coronavirus outbreak and billionaire Warren Buffett's Berkshire Hathaway's move to dump stakes in major U.S. airlines. Nine of the major 11 S&P 500 sectors were trading lower, also pressured by comments from U.S. Secretary of State Mike Pompeo that there was "a significant amount of evidence" the coronavirus emerged from a Chinese laboratory.
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Shares of Delta Air Lines Inc DAL.N, American Airlines Group Inc AAL.O, Southwest Airlines Co LUV.N and United Airlines Holdings Inc UAL.O fell between 7.8% and 10%, as Buffett said "the world has changed" for the aviation industry. For a live blog on the U.S. stock market, click LIVE/ or type LIVE/ in a news window Pompeo says "significant evidence" virus emerged from lab Airlines fall as Berkshire exits; Boeing down Tyson drops after sales warning High-growth stocks buoy Nasdaq Dow down 0.96%, S&P 500 falls 0.59%, Nasdaq flat Adds comments, updates to early afternoon By Shreyashi Sanyal and Medha Singh May 4 (Reuters) - The S&P 500 and Dow Jones dropped for the third session on Monday following a U.S.-China spat over the origins of the coronavirus outbreak and billionaire Warren Buffett's Berkshire Hathaway's move to dump stakes in major U.S. airlines. The S&P index recorded no new 52-week high and three new lows, while the Nasdaq recorded 13 new highs and 11 new lows.
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Shares of Delta Air Lines Inc DAL.N, American Airlines Group Inc AAL.O, Southwest Airlines Co LUV.N and United Airlines Holdings Inc UAL.O fell between 7.8% and 10%, as Buffett said "the world has changed" for the aviation industry. For a live blog on the U.S. stock market, click LIVE/ or type LIVE/ in a news window Pompeo says "significant evidence" virus emerged from lab Airlines fall as Berkshire exits; Boeing down Tyson drops after sales warning High-growth stocks buoy Nasdaq Dow down 0.96%, S&P 500 falls 0.59%, Nasdaq flat Adds comments, updates to early afternoon By Shreyashi Sanyal and Medha Singh May 4 (Reuters) - The S&P 500 and Dow Jones dropped for the third session on Monday following a U.S.-China spat over the origins of the coronavirus outbreak and billionaire Warren Buffett's Berkshire Hathaway's move to dump stakes in major U.S. airlines. All three major stock indexes have clawed back more than 11% in April, but the rally is likely to be tested in the coming weeks as investors trying to assess the pace of an economic recovery with states starting to emerge from lockdowns.
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Shares of Delta Air Lines Inc DAL.N, American Airlines Group Inc AAL.O, Southwest Airlines Co LUV.N and United Airlines Holdings Inc UAL.O fell between 7.8% and 10%, as Buffett said "the world has changed" for the aviation industry. For a live blog on the U.S. stock market, click LIVE/ or type LIVE/ in a news window Pompeo says "significant evidence" virus emerged from lab Airlines fall as Berkshire exits; Boeing down Tyson drops after sales warning High-growth stocks buoy Nasdaq Dow down 0.96%, S&P 500 falls 0.59%, Nasdaq flat Adds comments, updates to early afternoon By Shreyashi Sanyal and Medha Singh May 4 (Reuters) - The S&P 500 and Dow Jones dropped for the third session on Monday following a U.S.-China spat over the origins of the coronavirus outbreak and billionaire Warren Buffett's Berkshire Hathaway's move to dump stakes in major U.S. airlines. Nine of the major 11 S&P 500 sectors were trading lower, also pressured by comments from U.S. Secretary of State Mike Pompeo that there was "a significant amount of evidence" the coronavirus emerged from a Chinese laboratory.
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5942.0
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2020-05-04 00:00:00 UTC
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Why Warren Buffett's Berkshire Needs an Activist
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AAL
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https://www.nasdaq.com/articles/why-warren-buffetts-berkshire-needs-an-activist-2020-05-04
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nan
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nan
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“Berkshire needs an activist,” says Bill Smead, the lead manager of the Smead Value fund, which counts Berkshire Hathaway among its top 10 holdings.
Smead’s comments reflect the frustration of some Berkshire Hathaway shareholders who complain that CEO Warren Buffett has been too cautious during the recent market turmoil.
Berkshire (ticker: BRK.A) bought just $1.7 billion of its own stock in the first quarter, down from $2.1 billion in the fourth quarter. Buffett, meanwhile, showed no enthusiasm for greater buybacks in comments at the company’s annual meeting on Saturday.
Berkshire was also a net buyer of only $1.8 billion of stocks more broadly in the first quarter and sold a net $6.1 billion in April, disappointing those who hoped he would be more aggressive during the downturn. Berkshire sold out of its stakes in the country’s four biggest airlines: Delta Air Lines (DAL), Southwest Airlines (LUV), United Airlines Holdings (UAL), and American Airlines Group (AAL).
Cash and equivalents continued to build, hitting a record $137 billion on March 31, up from $128 billion on December 31.
Buffett’s performance isn’t cheering investors. Berkshire’s Class A shares were down 3% on Monday, to $265,883, and the more liquid Class B shares (BRK.B) were also off about 3%, to $177.
Berkshire continues to underperform the S&P 500. So far this year, Berkshire is off 21% against a negative 12% total return for the S&P 500.
The stock trades for under 1.2 times book value of $229,000 on March 31 and closer to 1.1 times book now given the stock market rally in April. (Berkshire holds more than $180 billion of stocks.) That is one of the lowest price to book ratios for Berkshire in a decade.
Smead says it is time for Bill Ackman to speak up. Ackman, the sometime activist investor, heads Pershing Square Capital Management and owns a stake in Berkshire. Ackman wrote favorably on Berkshire in a recent annual letter for his European closed-end fund that is available to U.S. holders, Pershing Square Holdings (PSHZF). A spokesman for Ackman declined to comment on Smead’s remarks.
Smead’s view is that Buffett is positioning Berkshire for a dire economic scenario that has at most 10% to 20% chance of playing out.
He was struck by Buffett’s comments at the meeting that Buffett sees his role and that of Vice Chairman Charlie Munger as “trustees” for Berkshire holders.
“I’ve never heard him talk about that before,” Smead says, adding that it made it seem as if Buffett was talking about a museum. “We don’t own the stock for capital preservation. We own the stock to create wealth.” Smead says Buffett is playing “maximum defense” now.
“Buffett is making assumptions about human behavior being changed by this virus,” Smead adds. “It appears that he, Charlie Munger, and Bill Gates share the same dour view of the next year. Age appears to be a factor in Berkshire playing defense.”
Buffett turns 90 in August. Gates, 64, a director, left Berkshire’s board in March. Munger, 96, is the longtime vice chairman of Berkshire. Buffett has noted that 99% of his wealth is tied up in Berkshire stock.
If Berkshire had bought back $6 billion to $7 billion in the first quarter it would have made a difference, Smead says. Berkshire’s stock buybacks in the period were modest relative to its $440 billion market value.
On Saturday, Berkshire reported first-quarter operating profits (excluding investment losses) of $3,619 a share, up about 6% from the year-earlier period, short of the consensus of around $3,800 a share, reflecting lower- than-expected profits at the Burlington Northern Santa Fe railroad and Berkshire’s big utility business.
KBW analyst Meyer Shields wrote in a client note: “We expect the disappointing results and the annual meeting’s sober near-term outlook to pressure the shares on Monday. We lower our 2020E/2021E EPS to $13,425/$15,100 from $14,220/$15,525 mostly on near-term macroeconomic revenue pressures, but raise our target price to $325,000 from $310,000 to reflect higher-than-expected quarter-end cash and short-term securities. ” Shields has a Market Perform rating on the stock.
For much of the past decade, Berkshire would have been an eager buyer of its stock at current levels. Buffett has stated previously that 1.2 times book was an attractive level relative to the company’s intrinsic value.
On Saturday, however, Buffett said that he wasn’t so keen on buybacks.
“We always think about it but I don’t feel it’s far more compelling to buy Berkshire shares now than I did three months ago, or nine months ago, or a year ago,” Buffett said.
Buffett was asked about whether an activist might target Berkshire after his death and push for a breakup of the company. Buffett replied that there would be sizable negative tax consequences to breaking up and that there are “enormous advantages” to the current structure that allows earnings to reallocated to the most productive use within the vast conglomerate.
“So there is not a big discount to break up value embodied in Berkshire’s price,” Buffett said. That statement likely would be disputed by many Berkshire investors especially with the stock at only a small premium to book value, which Buffett has regularly stated, substantially understates intrinsic value.
Buffett added that while his stock will be given away over a period after his death, his estate and other friendly holders would still hold a sizable stake. Despite likely calls for a breakup after his death, Buffett said, “it isn’t going to happen.”
One longtime Berkshire holder emailed Barron’s to say that he is frustrated by Buffett’s conservative approach: “Cheap statistically and resilient. But just not going to put that cash to work anytime soon.”
Berkshire shares are historically inexpensive and Barron’s has been bullish on them. Investors may need some patience because Buffett is taking a shelter-in-place approach to running the company.
Write to Andrew Bary at andrew.bary@barrons.com
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Berkshire sold out of its stakes in the country’s four biggest airlines: Delta Air Lines (DAL), Southwest Airlines (LUV), United Airlines Holdings (UAL), and American Airlines Group (AAL). Ackman wrote favorably on Berkshire in a recent annual letter for his European closed-end fund that is available to U.S. holders, Pershing Square Holdings (PSHZF). KBW analyst Meyer Shields wrote in a client note: “We expect the disappointing results and the annual meeting’s sober near-term outlook to pressure the shares on Monday.
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Berkshire sold out of its stakes in the country’s four biggest airlines: Delta Air Lines (DAL), Southwest Airlines (LUV), United Airlines Holdings (UAL), and American Airlines Group (AAL). “Berkshire needs an activist,” says Bill Smead, the lead manager of the Smead Value fund, which counts Berkshire Hathaway among its top 10 holdings. Ackman, the sometime activist investor, heads Pershing Square Capital Management and owns a stake in Berkshire.
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Berkshire sold out of its stakes in the country’s four biggest airlines: Delta Air Lines (DAL), Southwest Airlines (LUV), United Airlines Holdings (UAL), and American Airlines Group (AAL). “Berkshire needs an activist,” says Bill Smead, the lead manager of the Smead Value fund, which counts Berkshire Hathaway among its top 10 holdings. He was struck by Buffett’s comments at the meeting that Buffett sees his role and that of Vice Chairman Charlie Munger as “trustees” for Berkshire holders.
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Berkshire sold out of its stakes in the country’s four biggest airlines: Delta Air Lines (DAL), Southwest Airlines (LUV), United Airlines Holdings (UAL), and American Airlines Group (AAL). (Berkshire holds more than $180 billion of stocks.) “It appears that he, Charlie Munger, and Bill Gates share the same dour view of the next year.
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9baae913-8829-4097-a674-41f769d402ae
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5943.0
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2020-05-04 00:00:00 UTC
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Monday Sector Laggards: Aerospace & Defense, Airlines
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AAL
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https://www.nasdaq.com/articles/monday-sector-laggards%3A-aerospace-defense-airlines-2020-05-04
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nan
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nan
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In trading on Monday, aerospace & defense shares were relative laggards, down on the day by about 4.3%. Helping drag down the group were shares of Astronics, off about 8.4% and shares of Spirit Aerosystems Holdings off about 6.4% on the day.
Also lagging the market Monday are airlines shares, down on the day by about 3.7% as a group, led down by American Airlines Group, trading lower by about 9.7% and United Airlines Holdings, trading lower by about 9.2%.
VIDEO: Monday Sector Laggards: Aerospace & Defense, Airlines
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Monday, aerospace & defense shares were relative laggards, down on the day by about 4.3%. Also lagging the market Monday are airlines shares, down on the day by about 3.7% as a group, led down by American Airlines Group, trading lower by about 9.7% and United Airlines Holdings, trading lower by about 9.2%. VIDEO: Monday Sector Laggards: Aerospace & Defense, Airlines The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Monday, aerospace & defense shares were relative laggards, down on the day by about 4.3%. Also lagging the market Monday are airlines shares, down on the day by about 3.7% as a group, led down by American Airlines Group, trading lower by about 9.7% and United Airlines Holdings, trading lower by about 9.2%. VIDEO: Monday Sector Laggards: Aerospace & Defense, Airlines The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Helping drag down the group were shares of Astronics, off about 8.4% and shares of Spirit Aerosystems Holdings off about 6.4% on the day. Also lagging the market Monday are airlines shares, down on the day by about 3.7% as a group, led down by American Airlines Group, trading lower by about 9.7% and United Airlines Holdings, trading lower by about 9.2%. VIDEO: Monday Sector Laggards: Aerospace & Defense, Airlines The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Monday, aerospace & defense shares were relative laggards, down on the day by about 4.3%. Helping drag down the group were shares of Astronics, off about 8.4% and shares of Spirit Aerosystems Holdings off about 6.4% on the day. Also lagging the market Monday are airlines shares, down on the day by about 3.7% as a group, led down by American Airlines Group, trading lower by about 9.7% and United Airlines Holdings, trading lower by about 9.2%.
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c9c30e46-7941-48df-8eb6-afbe8e9abc20
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5944.0
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2020-05-04 00:00:00 UTC
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An Airline Rebound Is Years off, but Consider JBLU Stock a Buy
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AAL
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https://www.nasdaq.com/articles/an-airline-rebound-is-years-off-but-consider-jblu-stock-a-buy-2020-05-04
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
After crashing due to the novel coronavirus, are airline names like JetBlue (NASDAQ:JBLU) a great place to bottom fish? It depends. On one hand, government intervention means we probably won’t see JBLU stock probably won’t go to zero.
Source: Roman Tiraspolsky / Shutterstock.com
On the other hand, it could be years before air travel rebounds. Yet, while the industry’s near-term prospects do not look promising, this airline in particular may be a great buy even as shares have bounced back from their 52-week lows.
Why? For one, JetBlue doesn’t have the bloated cost structure part-and-parcel with legacy carriers like American Airlines (NASDAQ:AAL). In fact, just before the pandemic, the company announced it shaved $314 million off its cost base. Also, the discount airline avoided the whole Boeing (NYSE:BA) 737 Max debacle, another factor setting them apart from many of their rivals.
Is this enough to help the airline bounce back quicker than anticipated? That remains to be seen. Yet, relative to rivals, JBLU may be a better way to play a potential air travel rebound. So, let’s dive in, and find out why.
JBLU Stock, the Pandemic, and What’s Next
Like its larger rivals, the airline took advantage of loans and grants provided by the CARES Act stimulus package. In total, JetBlue received around $936 million in funds. Is this enough to keep the carrier afloat while air travel volume remains depressed?
7 Fundamentally Solid Dividend Stocks to Buy
As I’ve discussed in prior airline stock analysis, the CARES Act may not be a “silver bullet” for the airline industry. Also, the CARES Act funds come with many strings attached. Accepting the money limits their ability to furlough workers. And in the case of JetBlue, the airline was forced to continue operating certain routes in order to qualify for the funds.
Yet, they may have what it takes to weather the storm. Going into this crisis, JetBlue had one of the strongest balance sheets in the industry. Add in the CARES Act funds, and the company may have enough liquidity to ride things out.
Also, the company is taking active steps to reduce its cash burn further, as low passenger traffic makes flying many of its routes highly unprofitable. For example, JetBlue is lobbying the Department of Transportation to allow them to suspend flights at 16 U.S. airports, including Chicago’s O’Hare.
So it seems the airline is in relatively decent shape as it contends with the pandemic. But what’s next for the company? While a rebound could be years off, they may be able to recover much faster than the larger airlines.
Why JetBlue Could Bounce Back Quicker Than Rivals
As this Seeking Alpha contributor recently pointed out, this airline differs from others in that it’s not a “hub-and-spoke” carrier. In other words, instead of routing flights through a centralized “hub” airport, JetBlue’s focus is on direct flights from one city to another (also known as point-to-point).
This could be an advantage for the airline coming out of the pandemic. Why? Using the point-to-point model, JetBlue could restart operations with minimal delays.
Yet, being more nimble than peers may not matter if air travel remains depressed. As InvestorPlace’s Brad Moon wrote on April 20, it’s still unknown how soon passengers return to the skies. However, investors don’t seem so concerned.
The specter of “shelter-in-place” orders coming to an end has helped to boost airline stocks as of late. JBLU stock is no exception. The carrier’s shares have bounced back from their March lows of around $6.61 per share and now trade above $10 per share.
Nevertheless, shares have plenty of catch-up to do before they get back to prior price levels. Before the outbreak, shares were trading at prices above $20 per share. But, this could mean opportunity. If air travel bounces back quicker than anticipated, shares could easily double within a short time frame.
Despite Risks, JBLU Stock Is Worthwhile Buy
It’s a long road to recovery for the airline industry. Yet, in the case of JetBlue, today may be the perfect time to buy.
With a relatively stronger balance sheet, they may be able to ride things out better than legacy carriers. With a more nimble business model, they could “return to normal” much quicker as well.
Shares may not recover for a least a few quarters. But a year from now, buying JBLU stock today could wind up being a smart move in hindsight.
Thomas Niel, contributor to InvestorPlace, has written single-stock analysis since 2016. As of this writing, Thomas Niel did not hold a position in any of the aforementioned securities.
The post An Airline Rebound Is Years off, but Consider 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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For one, JetBlue doesn’t have the bloated cost structure part-and-parcel with legacy carriers like American Airlines (NASDAQ:AAL). JBLU Stock, the Pandemic, and What’s Next Like its larger rivals, the airline took advantage of loans and grants provided by the CARES Act stimulus package. Also, the company is taking active steps to reduce its cash burn further, as low passenger traffic makes flying many of its routes highly unprofitable.
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For one, JetBlue doesn’t have the bloated cost structure part-and-parcel with legacy carriers like American Airlines (NASDAQ:AAL). Is this enough to help the airline bounce back quicker than anticipated? 7 Fundamentally Solid Dividend Stocks to Buy As I’ve discussed in prior airline stock analysis, the CARES Act may not be a “silver bullet” for the airline industry.
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For one, JetBlue doesn’t have the bloated cost structure part-and-parcel with legacy carriers like American Airlines (NASDAQ:AAL). InvestorPlace - Stock Market News, Stock Advice & Trading Tips After crashing due to the novel coronavirus, are airline names like JetBlue (NASDAQ:JBLU) a great place to bottom fish? 7 Fundamentally Solid Dividend Stocks to Buy As I’ve discussed in prior airline stock analysis, the CARES Act may not be a “silver bullet” for the airline industry.
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For one, JetBlue doesn’t have the bloated cost structure part-and-parcel with legacy carriers like American Airlines (NASDAQ:AAL). JBLU stock is no exception. If air travel bounces back quicker than anticipated, shares could easily double within a short time frame.
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069b0122-6902-4c88-bc3e-b83733c80151
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5945.0
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2020-05-04 00:00:00 UTC
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BUZZ-U.S. STOCKS ON THE MOVE-Airlines, banks, insurers, PG&E
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AAL
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https://www.nasdaq.com/articles/buzz-u.s.-stocks-on-the-move-airlines-banks-insurers-pge-2020-05-04
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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
The S&P 500 and Dow Jones indexes retreated on Monday following a U.S.-China spat about the origins of the coronavirus outbreak, while major carriers slumped after billionaire Warren Buffett's Berkshire Hathaway dumped its stakes in the sector. .N
At 10:46 ET, the Dow Jones Industrial Average .DJI was down 0.86% at 23,519.49. The S&P 500 .SPX was down 0.46% at 2,817.79 and the Nasdaq Composite .IXIC was up 0.31% at 8,631.813. The top three S&P 500 .PG.INX percentage gainers: ** Phillips 66 PSX.N, up 6.2% ** Valero Energy VLO.N, up 5.6% ** Helmerich & Payne Inc HP.N, up 5.2% The top three S&P 500 .PL.INX percentage losers: ** Delta Air Lines Inc DAL.N, down 9.2% ** American Airlines Group Inc AAL.O, down 9% ** United Airlines Holdings Inc UAL.O, down 8.5% The top two NYSE .PG.N percentage gainers: ** Retractable Technologies Inc RVP.N, up 31.4% ** Warrior Met Coal Inc HCC.N, up 18.9% The top three NYSE .PL.N percentage losers: ** Front Yard Residential Corp RESI.N, down 22.9% ** Pitney Bowes Inc PBI.N, down 14.5% ** Colony Credit Real Estate Inc CLNC.N, down 12.4% The top three Nasdaq .PG.O percentage gainers: ** Stemline Therapeutics Inc STML.O, up 154.2% ** Applied DNA APDN.O, up 49.2% ** Liberty Global plc LBTYB.O, up 32.8% The top three Nasdaq .PL.O percentage losers: ** Oxford Lane Capital Corp OXLC.O, down 17.1% ** Dave & Buster's Entertainment Inc PLAY.O, down 16.4% ** Francesca's Holdings Corp FRAN.O, down 15.9% ** Goldman Sachs Group Inc GS.N: down 1.9% ** JPMorgan Chase & Co JPM.N: down 2.0% ** Citi C.N: down 1.8% ** Wells Fargo WFC.N: down 1.7% ** Bank of America BAC.N: down 1.9% ** Morgan Stanley MS.N: down 1.9% BUZZ-Big banks fall as Treasury yields drop amid risk-off mood ** Delta Air Lines DAL.N: down 9.2% ** American Airlines Co AAL.O: down 9.1% ** Southwest Airlines Co LUV.N: down 7.9% ** United Airlines UAL.O: down 8.6% ** Spirit Airlines SAVE.N: down 6.7% ** JetBlue JBLU.O: down 6.0% ** Alaska Air ALK.N: down 7.2% BUZZ-Airline stocks plunge after Buffett dumps stakes ** Prudential PLC PRU.N: down 2.1% ** MetLife Inc MET.N: down 2.0% ** American International Group Inc AIG.N: up 0.8% ** Willis Towers Watson WLTW.O: down 0.6% BUZZ-U.S. insurers fall as futures drop on renewed U.S.-China tensions ** Boeing BA.N: down 3.6% BUZZ-Aerospace & Defence: Berenberg does not see through to a new normal ** Zoom Video Communications Inc ZM.O: up 2.0% BUZZ-Zoom: Piper Sandler hikes PT on potential upside ** Teladoc Health Inc TDOC.N: down 1.2% BUZZ-Creating patient awareness biggest challenge for telemedicine - GlobalData ** KLX Energy Services Holdings Inc KLXE.O: up 49.9% ** Quintana Energy Services QES.N: down 9.7% BUZZ-KLX Energy: Jumps on merger deal with Quintana Energy Services ** Co-Diagnostics CODX.O: up 11.1% BUZZ-Jumps on approvals for COVID-19 tests in Mexico, India ** Canopy Growth Corp CGC.N: up 3.0% BUZZ-Pot producer Canopy Growth climbs as Constellation Brands ups stake ** Francesca's Holding Corp FRAN.O: down 15.9% BUZZ-Drops as co flags going concern doubts due to coronavirus ** Honeywell International Inc HON.N: down 2.1% BUZZ-Street View: Honeywell will weather COVID-19 storm in the long run ** Gilead Sciences Inc GILD.O: down 0.2% BUZZ-Gilead COVID-19 drug worth billions even if priced below suggested threshold ** Stemline Therapeutics Inc STML.O: up 154.2% BUZZ-Surges as Italian drugmaker Menarini Group agrees to buy co ** Anixa Biosciences Inc ANIX.O: up 11.7% BUZZ-Up on identifying potential COVID-19 treatment ** Occidental Petroleum OXY.N: down 1.2% BUZZ-Falls as report claims Algerian divestiture facing opposition ** Virgin Galactic Holdings Inc SPCE.N: down 3.6% BUZZ-Descends as co files 150 mln share offering by holders ** Vir Biotech VIR.O: up 6.3% ** Alnylam Pharmaceuticals Inc ALNY.O: up 1.4% BUZZ-Vir Biotech, Alnylam Pharma: Gain on identifying potential COVID-19 treatment ** Tyson Foods Inc TSN.N: down 7.8% BUZZ-Tyson Foods warns of hit to meat sales, shares slide ** Activision Blizzard Inc ATVI.O: up 2.8% ** Electronic Arts EA.O: up 2.4% BUZZ-Activision Blizzard, Electronic Arts: CS hikes PT, sees rise in video games download ** PG&E Corp PCG.N: up 7.1% BUZZ-UBS sees co re-emerging from bankruptcy, upgrades to 'buy' ** Dave & Buster's Entertainment Inc PLAY.O: down 16.4% BUZZ-Falls on $100 mln share offering ** Front Yard Residential Corp RESI.N: down 22.9% BUZZ-Plunges on terminating merger with Amherst Residential
The 11 major S&P 500 sectors:
Communication Services
.SPLRCL
down 0.39%
Consumer Discretionary
.SPLRCD
up 0.25%
Consumer Staples
.SPLRCS
down 0.66%
Energy
.SPNY
up 1.14%
Financial
.SPSY
down 1.60%
Health
.SPXHC
down 0.59%
Industrial
.SPLRCI
down 2.30%
Information Technology
.SPLRCT
up 0.45%
Materials
.SPLRCM
down 0.68%
Real Estate
.SPLRCR
down 2.06%
Utilities
.SPLRCU
down 0.70%
(Compiled by Trisha Roy in Bengaluru)
((Trisha.Roy@thomsonreuters.com; within U.S. +1 646 223 8780, outside U.S. +91 80 6182 3635;))
The views and 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: ** Phillips 66 PSX.N, up 6.2% ** Valero Energy VLO.N, up 5.6% ** Helmerich & Payne Inc HP.N, up 5.2% The top three S&P 500 .PL.INX percentage losers: ** Delta Air Lines Inc DAL.N, down 9.2% ** American Airlines Group Inc AAL.O, down 9% ** United Airlines Holdings Inc UAL.O, down 8.5% The top two NYSE .PG.N percentage gainers: ** Retractable Technologies Inc RVP.N, up 31.4% ** Warrior Met Coal Inc HCC.N, up 18.9% The top three NYSE .PL.N percentage losers: ** Front Yard Residential Corp RESI.N, down 22.9% ** Pitney Bowes Inc PBI.N, down 14.5% ** Colony Credit Real Estate Inc CLNC.N, down 12.4% The top three Nasdaq .PG.O percentage gainers: ** Stemline Therapeutics Inc STML.O, up 154.2% ** Applied DNA APDN.O, up 49.2% ** Liberty Global plc LBTYB.O, up 32.8% The top three Nasdaq .PL.O percentage losers: ** Oxford Lane Capital Corp OXLC.O, down 17.1% ** Dave & Buster's Entertainment Inc PLAY.O, down 16.4% ** Francesca's Holdings Corp FRAN.O, down 15.9% ** Goldman Sachs Group Inc GS.N: down 1.9% ** JPMorgan Chase & Co JPM.N: down 2.0% ** Citi C.N: down 1.8% ** Wells Fargo WFC.N: down 1.7% ** Bank of America BAC.N: down 1.9% ** Morgan Stanley MS.N: down 1.9% BUZZ-Big banks fall as Treasury yields drop amid risk-off mood ** Delta Air Lines DAL.N: down 9.2% ** American Airlines Co AAL.O: down 9.1% ** Southwest Airlines Co LUV.N: down 7.9% ** United Airlines UAL.O: down 8.6% ** Spirit Airlines SAVE.N: down 6.7% ** JetBlue JBLU.O: down 6.0% ** Alaska Air ALK.N: down 7.2% BUZZ-Airline stocks plunge after Buffett dumps stakes ** Prudential PLC PRU.N: down 2.1% ** MetLife Inc MET.N: down 2.0% ** American International Group Inc AIG.N: up 0.8% ** Willis Towers Watson WLTW.O: down 0.6% BUZZ-U.S. insurers fall as futures drop on renewed U.S.-China tensions ** Boeing BA.N: down 3.6% BUZZ-Aerospace & Defence: Berenberg does not see through to a new normal ** Zoom Video Communications Inc ZM.O: up 2.0% BUZZ-Zoom: Piper Sandler hikes PT on potential upside ** Teladoc Health Inc TDOC.N: down 1.2% BUZZ-Creating patient awareness biggest challenge for telemedicine - GlobalData ** KLX Energy Services Holdings Inc KLXE.O: up 49.9% ** Quintana Energy Services QES.N: down 9.7% BUZZ-KLX Energy: Jumps on merger deal with Quintana Energy Services ** Co-Diagnostics CODX.O: up 11.1% BUZZ-Jumps on approvals for COVID-19 tests in Mexico, India ** Canopy Growth Corp CGC.N: up 3.0% BUZZ-Pot producer Canopy Growth climbs as Constellation Brands ups stake ** Francesca's Holding Corp FRAN.O: down 15.9% BUZZ-Drops as co flags going concern doubts due to coronavirus ** Honeywell International Inc HON.N: down 2.1% BUZZ-Street View: Honeywell will weather COVID-19 storm in the long run ** Gilead Sciences Inc GILD.O: down 0.2% BUZZ-Gilead COVID-19 drug worth billions even if priced below suggested threshold ** Stemline Therapeutics Inc STML.O: up 154.2% BUZZ-Surges as Italian drugmaker Menarini Group agrees to buy co ** Anixa Biosciences Inc ANIX.O: up 11.7% BUZZ-Up on identifying potential COVID-19 treatment ** Occidental Petroleum OXY.N: down 1.2% BUZZ-Falls as report claims Algerian divestiture facing opposition ** Virgin Galactic Holdings Inc SPCE.N: down 3.6% BUZZ-Descends as co files 150 mln share offering by holders ** Vir Biotech VIR.O: up 6.3% ** Alnylam Pharmaceuticals Inc ALNY.O: up 1.4% BUZZ-Vir Biotech, Alnylam Pharma: Gain on identifying potential COVID-19 treatment ** Tyson Foods Inc TSN.N: down 7.8% BUZZ-Tyson Foods warns of hit to meat sales, shares slide ** Activision Blizzard Inc ATVI.O: up 2.8% ** Electronic Arts EA.O: up 2.4% BUZZ-Activision Blizzard, Electronic Arts: CS hikes PT, sees rise in video games download ** PG&E Corp PCG.N: up 7.1% BUZZ-UBS sees co re-emerging from bankruptcy, upgrades to 'buy' ** Dave & Buster's Entertainment Inc PLAY.O: down 16.4% BUZZ-Falls on $100 mln share offering ** Front Yard Residential Corp RESI.N: down 22.9% BUZZ-Plunges on terminating merger with Amherst Residential The 11 major S&P 500 sectors: Communication Services Eikon search string for individual stock moves: STXBZ The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh The S&P 500 and Dow Jones indexes retreated on Monday following a U.S.-China spat about the origins of the coronavirus outbreak, while major carriers slumped after billionaire Warren Buffett's Berkshire Hathaway dumped its stakes in the sector. down 0.70% (Compiled by Trisha Roy in Bengaluru) ((Trisha.Roy@thomsonreuters.com; within U.S. +1 646 223 8780, outside U.S. +91 80 6182 3635;)) The views and 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: ** Phillips 66 PSX.N, up 6.2% ** Valero Energy VLO.N, up 5.6% ** Helmerich & Payne Inc HP.N, up 5.2% The top three S&P 500 .PL.INX percentage losers: ** Delta Air Lines Inc DAL.N, down 9.2% ** American Airlines Group Inc AAL.O, down 9% ** United Airlines Holdings Inc UAL.O, down 8.5% The top two NYSE .PG.N percentage gainers: ** Retractable Technologies Inc RVP.N, up 31.4% ** Warrior Met Coal Inc HCC.N, up 18.9% The top three NYSE .PL.N percentage losers: ** Front Yard Residential Corp RESI.N, down 22.9% ** Pitney Bowes Inc PBI.N, down 14.5% ** Colony Credit Real Estate Inc CLNC.N, down 12.4% The top three Nasdaq .PG.O percentage gainers: ** Stemline Therapeutics Inc STML.O, up 154.2% ** Applied DNA APDN.O, up 49.2% ** Liberty Global plc LBTYB.O, up 32.8% The top three Nasdaq .PL.O percentage losers: ** Oxford Lane Capital Corp OXLC.O, down 17.1% ** Dave & Buster's Entertainment Inc PLAY.O, down 16.4% ** Francesca's Holdings Corp FRAN.O, down 15.9% ** Goldman Sachs Group Inc GS.N: down 1.9% ** JPMorgan Chase & Co JPM.N: down 2.0% ** Citi C.N: down 1.8% ** Wells Fargo WFC.N: down 1.7% ** Bank of America BAC.N: down 1.9% ** Morgan Stanley MS.N: down 1.9% BUZZ-Big banks fall as Treasury yields drop amid risk-off mood ** Delta Air Lines DAL.N: down 9.2% ** American Airlines Co AAL.O: down 9.1% ** Southwest Airlines Co LUV.N: down 7.9% ** United Airlines UAL.O: down 8.6% ** Spirit Airlines SAVE.N: down 6.7% ** JetBlue JBLU.O: down 6.0% ** Alaska Air ALK.N: down 7.2% BUZZ-Airline stocks plunge after Buffett dumps stakes ** Prudential PLC PRU.N: down 2.1% ** MetLife Inc MET.N: down 2.0% ** American International Group Inc AIG.N: up 0.8% ** Willis Towers Watson WLTW.O: down 0.6% BUZZ-U.S. insurers fall as futures drop on renewed U.S.-China tensions ** Boeing BA.N: down 3.6% BUZZ-Aerospace & Defence: Berenberg does not see through to a new normal ** Zoom Video Communications Inc ZM.O: up 2.0% BUZZ-Zoom: Piper Sandler hikes PT on potential upside ** Teladoc Health Inc TDOC.N: down 1.2% BUZZ-Creating patient awareness biggest challenge for telemedicine - GlobalData ** KLX Energy Services Holdings Inc KLXE.O: up 49.9% ** Quintana Energy Services QES.N: down 9.7% BUZZ-KLX Energy: Jumps on merger deal with Quintana Energy Services ** Co-Diagnostics CODX.O: up 11.1% BUZZ-Jumps on approvals for COVID-19 tests in Mexico, India ** Canopy Growth Corp CGC.N: up 3.0% BUZZ-Pot producer Canopy Growth climbs as Constellation Brands ups stake ** Francesca's Holding Corp FRAN.O: down 15.9% BUZZ-Drops as co flags going concern doubts due to coronavirus ** Honeywell International Inc HON.N: down 2.1% BUZZ-Street View: Honeywell will weather COVID-19 storm in the long run ** Gilead Sciences Inc GILD.O: down 0.2% BUZZ-Gilead COVID-19 drug worth billions even if priced below suggested threshold ** Stemline Therapeutics Inc STML.O: up 154.2% BUZZ-Surges as Italian drugmaker Menarini Group agrees to buy co ** Anixa Biosciences Inc ANIX.O: up 11.7% BUZZ-Up on identifying potential COVID-19 treatment ** Occidental Petroleum OXY.N: down 1.2% BUZZ-Falls as report claims Algerian divestiture facing opposition ** Virgin Galactic Holdings Inc SPCE.N: down 3.6% BUZZ-Descends as co files 150 mln share offering by holders ** Vir Biotech VIR.O: up 6.3% ** Alnylam Pharmaceuticals Inc ALNY.O: up 1.4% BUZZ-Vir Biotech, Alnylam Pharma: Gain on identifying potential COVID-19 treatment ** Tyson Foods Inc TSN.N: down 7.8% BUZZ-Tyson Foods warns of hit to meat sales, shares slide ** Activision Blizzard Inc ATVI.O: up 2.8% ** Electronic Arts EA.O: up 2.4% BUZZ-Activision Blizzard, Electronic Arts: CS hikes PT, sees rise in video games download ** PG&E Corp PCG.N: up 7.1% BUZZ-UBS sees co re-emerging from bankruptcy, upgrades to 'buy' ** Dave & Buster's Entertainment Inc PLAY.O: down 16.4% BUZZ-Falls on $100 mln share offering ** Front Yard Residential Corp RESI.N: down 22.9% BUZZ-Plunges on terminating merger with Amherst Residential The 11 major S&P 500 sectors: Communication Services Eikon search string for individual stock moves: STXBZ The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh The S&P 500 and Dow Jones indexes retreated on Monday following a U.S.-China spat about the origins of the coronavirus outbreak, while major carriers slumped after billionaire Warren Buffett's Berkshire Hathaway dumped its stakes in the sector. .N At 10:46 ET, the Dow Jones Industrial Average .DJI was down 0.86% at 23,519.49.
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The top three S&P 500 .PG.INX percentage gainers: ** Phillips 66 PSX.N, up 6.2% ** Valero Energy VLO.N, up 5.6% ** Helmerich & Payne Inc HP.N, up 5.2% The top three S&P 500 .PL.INX percentage losers: ** Delta Air Lines Inc DAL.N, down 9.2% ** American Airlines Group Inc AAL.O, down 9% ** United Airlines Holdings Inc UAL.O, down 8.5% The top two NYSE .PG.N percentage gainers: ** Retractable Technologies Inc RVP.N, up 31.4% ** Warrior Met Coal Inc HCC.N, up 18.9% The top three NYSE .PL.N percentage losers: ** Front Yard Residential Corp RESI.N, down 22.9% ** Pitney Bowes Inc PBI.N, down 14.5% ** Colony Credit Real Estate Inc CLNC.N, down 12.4% The top three Nasdaq .PG.O percentage gainers: ** Stemline Therapeutics Inc STML.O, up 154.2% ** Applied DNA APDN.O, up 49.2% ** Liberty Global plc LBTYB.O, up 32.8% The top three Nasdaq .PL.O percentage losers: ** Oxford Lane Capital Corp OXLC.O, down 17.1% ** Dave & Buster's Entertainment Inc PLAY.O, down 16.4% ** Francesca's Holdings Corp FRAN.O, down 15.9% ** Goldman Sachs Group Inc GS.N: down 1.9% ** JPMorgan Chase & Co JPM.N: down 2.0% ** Citi C.N: down 1.8% ** Wells Fargo WFC.N: down 1.7% ** Bank of America BAC.N: down 1.9% ** Morgan Stanley MS.N: down 1.9% BUZZ-Big banks fall as Treasury yields drop amid risk-off mood ** Delta Air Lines DAL.N: down 9.2% ** American Airlines Co AAL.O: down 9.1% ** Southwest Airlines Co LUV.N: down 7.9% ** United Airlines UAL.O: down 8.6% ** Spirit Airlines SAVE.N: down 6.7% ** JetBlue JBLU.O: down 6.0% ** Alaska Air ALK.N: down 7.2% BUZZ-Airline stocks plunge after Buffett dumps stakes ** Prudential PLC PRU.N: down 2.1% ** MetLife Inc MET.N: down 2.0% ** American International Group Inc AIG.N: up 0.8% ** Willis Towers Watson WLTW.O: down 0.6% BUZZ-U.S. insurers fall as futures drop on renewed U.S.-China tensions ** Boeing BA.N: down 3.6% BUZZ-Aerospace & Defence: Berenberg does not see through to a new normal ** Zoom Video Communications Inc ZM.O: up 2.0% BUZZ-Zoom: Piper Sandler hikes PT on potential upside ** Teladoc Health Inc TDOC.N: down 1.2% BUZZ-Creating patient awareness biggest challenge for telemedicine - GlobalData ** KLX Energy Services Holdings Inc KLXE.O: up 49.9% ** Quintana Energy Services QES.N: down 9.7% BUZZ-KLX Energy: Jumps on merger deal with Quintana Energy Services ** Co-Diagnostics CODX.O: up 11.1% BUZZ-Jumps on approvals for COVID-19 tests in Mexico, India ** Canopy Growth Corp CGC.N: up 3.0% BUZZ-Pot producer Canopy Growth climbs as Constellation Brands ups stake ** Francesca's Holding Corp FRAN.O: down 15.9% BUZZ-Drops as co flags going concern doubts due to coronavirus ** Honeywell International Inc HON.N: down 2.1% BUZZ-Street View: Honeywell will weather COVID-19 storm in the long run ** Gilead Sciences Inc GILD.O: down 0.2% BUZZ-Gilead COVID-19 drug worth billions even if priced below suggested threshold ** Stemline Therapeutics Inc STML.O: up 154.2% BUZZ-Surges as Italian drugmaker Menarini Group agrees to buy co ** Anixa Biosciences Inc ANIX.O: up 11.7% BUZZ-Up on identifying potential COVID-19 treatment ** Occidental Petroleum OXY.N: down 1.2% BUZZ-Falls as report claims Algerian divestiture facing opposition ** Virgin Galactic Holdings Inc SPCE.N: down 3.6% BUZZ-Descends as co files 150 mln share offering by holders ** Vir Biotech VIR.O: up 6.3% ** Alnylam Pharmaceuticals Inc ALNY.O: up 1.4% BUZZ-Vir Biotech, Alnylam Pharma: Gain on identifying potential COVID-19 treatment ** Tyson Foods Inc TSN.N: down 7.8% BUZZ-Tyson Foods warns of hit to meat sales, shares slide ** Activision Blizzard Inc ATVI.O: up 2.8% ** Electronic Arts EA.O: up 2.4% BUZZ-Activision Blizzard, Electronic Arts: CS hikes PT, sees rise in video games download ** PG&E Corp PCG.N: up 7.1% BUZZ-UBS sees co re-emerging from bankruptcy, upgrades to 'buy' ** Dave & Buster's Entertainment Inc PLAY.O: down 16.4% BUZZ-Falls on $100 mln share offering ** Front Yard Residential Corp RESI.N: down 22.9% BUZZ-Plunges on terminating merger with Amherst Residential The 11 major S&P 500 sectors: Communication Services Eikon search string for individual stock moves: STXBZ The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh The S&P 500 and Dow Jones indexes retreated on Monday following a U.S.-China spat about the origins of the coronavirus outbreak, while major carriers slumped after billionaire Warren Buffett's Berkshire Hathaway dumped its stakes in the sector. down 0.39% Consumer Discretionary
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The top three S&P 500 .PG.INX percentage gainers: ** Phillips 66 PSX.N, up 6.2% ** Valero Energy VLO.N, up 5.6% ** Helmerich & Payne Inc HP.N, up 5.2% The top three S&P 500 .PL.INX percentage losers: ** Delta Air Lines Inc DAL.N, down 9.2% ** American Airlines Group Inc AAL.O, down 9% ** United Airlines Holdings Inc UAL.O, down 8.5% The top two NYSE .PG.N percentage gainers: ** Retractable Technologies Inc RVP.N, up 31.4% ** Warrior Met Coal Inc HCC.N, up 18.9% The top three NYSE .PL.N percentage losers: ** Front Yard Residential Corp RESI.N, down 22.9% ** Pitney Bowes Inc PBI.N, down 14.5% ** Colony Credit Real Estate Inc CLNC.N, down 12.4% The top three Nasdaq .PG.O percentage gainers: ** Stemline Therapeutics Inc STML.O, up 154.2% ** Applied DNA APDN.O, up 49.2% ** Liberty Global plc LBTYB.O, up 32.8% The top three Nasdaq .PL.O percentage losers: ** Oxford Lane Capital Corp OXLC.O, down 17.1% ** Dave & Buster's Entertainment Inc PLAY.O, down 16.4% ** Francesca's Holdings Corp FRAN.O, down 15.9% ** Goldman Sachs Group Inc GS.N: down 1.9% ** JPMorgan Chase & Co JPM.N: down 2.0% ** Citi C.N: down 1.8% ** Wells Fargo WFC.N: down 1.7% ** Bank of America BAC.N: down 1.9% ** Morgan Stanley MS.N: down 1.9% BUZZ-Big banks fall as Treasury yields drop amid risk-off mood ** Delta Air Lines DAL.N: down 9.2% ** American Airlines Co AAL.O: down 9.1% ** Southwest Airlines Co LUV.N: down 7.9% ** United Airlines UAL.O: down 8.6% ** Spirit Airlines SAVE.N: down 6.7% ** JetBlue JBLU.O: down 6.0% ** Alaska Air ALK.N: down 7.2% BUZZ-Airline stocks plunge after Buffett dumps stakes ** Prudential PLC PRU.N: down 2.1% ** MetLife Inc MET.N: down 2.0% ** American International Group Inc AIG.N: up 0.8% ** Willis Towers Watson WLTW.O: down 0.6% BUZZ-U.S. insurers fall as futures drop on renewed U.S.-China tensions ** Boeing BA.N: down 3.6% BUZZ-Aerospace & Defence: Berenberg does not see through to a new normal ** Zoom Video Communications Inc ZM.O: up 2.0% BUZZ-Zoom: Piper Sandler hikes PT on potential upside ** Teladoc Health Inc TDOC.N: down 1.2% BUZZ-Creating patient awareness biggest challenge for telemedicine - GlobalData ** KLX Energy Services Holdings Inc KLXE.O: up 49.9% ** Quintana Energy Services QES.N: down 9.7% BUZZ-KLX Energy: Jumps on merger deal with Quintana Energy Services ** Co-Diagnostics CODX.O: up 11.1% BUZZ-Jumps on approvals for COVID-19 tests in Mexico, India ** Canopy Growth Corp CGC.N: up 3.0% BUZZ-Pot producer Canopy Growth climbs as Constellation Brands ups stake ** Francesca's Holding Corp FRAN.O: down 15.9% BUZZ-Drops as co flags going concern doubts due to coronavirus ** Honeywell International Inc HON.N: down 2.1% BUZZ-Street View: Honeywell will weather COVID-19 storm in the long run ** Gilead Sciences Inc GILD.O: down 0.2% BUZZ-Gilead COVID-19 drug worth billions even if priced below suggested threshold ** Stemline Therapeutics Inc STML.O: up 154.2% BUZZ-Surges as Italian drugmaker Menarini Group agrees to buy co ** Anixa Biosciences Inc ANIX.O: up 11.7% BUZZ-Up on identifying potential COVID-19 treatment ** Occidental Petroleum OXY.N: down 1.2% BUZZ-Falls as report claims Algerian divestiture facing opposition ** Virgin Galactic Holdings Inc SPCE.N: down 3.6% BUZZ-Descends as co files 150 mln share offering by holders ** Vir Biotech VIR.O: up 6.3% ** Alnylam Pharmaceuticals Inc ALNY.O: up 1.4% BUZZ-Vir Biotech, Alnylam Pharma: Gain on identifying potential COVID-19 treatment ** Tyson Foods Inc TSN.N: down 7.8% BUZZ-Tyson Foods warns of hit to meat sales, shares slide ** Activision Blizzard Inc ATVI.O: up 2.8% ** Electronic Arts EA.O: up 2.4% BUZZ-Activision Blizzard, Electronic Arts: CS hikes PT, sees rise in video games download ** PG&E Corp PCG.N: up 7.1% BUZZ-UBS sees co re-emerging from bankruptcy, upgrades to 'buy' ** Dave & Buster's Entertainment Inc PLAY.O: down 16.4% BUZZ-Falls on $100 mln share offering ** Front Yard Residential Corp RESI.N: down 22.9% BUZZ-Plunges on terminating merger with Amherst Residential The 11 major S&P 500 sectors: Communication Services .N At 10:46 ET, the Dow Jones Industrial Average .DJI was down 0.86% at 23,519.49. The S&P 500 .SPX was down 0.46% at 2,817.79 and the Nasdaq Composite .IXIC was up 0.31% at 8,631.813.
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4595f6c8-e665-4319-bfbf-7eec1ad42e7f
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5946.0
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2020-05-04 00:00:00 UTC
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BUZZ-U.S. STOCKS ON THE MOVE-Airlines, banks, oil stocks, Co-Diagnostics
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AAL
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https://www.nasdaq.com/articles/buzz-u.s.-stocks-on-the-move-airlines-banks-oil-stocks-co-diagnostics-2020-05-04
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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
U.S. stock index futures retreated on Monday after a fresh spat between Washington and Beijing over the origin of the novel coronavirus, while airlines slumped as Berkshire Hathaway dumped its holdings in the sector. .N
At 7:46 ET, Dow e-minis 1YMc1 were down 1.04% at 23,373. S&P 500 e-minis ESc1 were down 0.76% at 2,800.25, while Nasdaq 100 e-minis NQc1 were down 0.73% at 8,654. The top three NYSE percentage gainers premarket .PRPG.NQ: ** Quintana Energy Services Inc QES.N, up 15.7% ** ASE Technology Holding Co Ltd ASX.N, up 11.5% ** Pennsylvania Real Estate Investment Trust PEI.N, up 8.3% The top three NYSE percentage losers premarket .PRPL.NQ: ** Flagstar Bancorp Inc FBC.N, down 13.5% ** TETRA Technologies Inc TTI.N, down 10.9% ** AMC Entertainment Holdings Inc AMC.N, down 10.7% The top three Nasdaq percentage gainers premarket .PRPG.O: ** Stemline Therapeutics Inc STML.O, up 148.6% ** Netscout Systems Inc NTCT.O, up 132.1% ** Microvision Inc MVIS.O, up 90.6% The top three Nasdaq percentage losers premarket .PRPL.O: ** Tristate Capital Holdings Inc TSC.O, down 28.6% ** Company name not found MDGS.O, down 19.7% ** Francesca's Holdings Corp FRAN.O, down 16.6% ** Boeing BA.N: down 4.5% premarket BUZZ-Aerospace & Defence: Berenberg does not see through to a new normal ** Exxon Mobil Corp XOM.N: down 2.3% premarket ** Chevron Corp CVX.N: down 3.0% premarket BUZZ-Street View: Exxon is taking the correct, patient approach BUZZ-Street View: Chevron's cash flow to help co weather near-term headwinds ** Teladoc Health Inc TDOC.N: up 2.3% premarket BUZZ-Creating patient awareness biggest challenge for telemedicine - GlobalData ** KLX Energy Services Holdings Inc KLXE.O: up 41.7% premarket ** Quintana Energy Services QES.N: up 15.7% premarket BUZZ-KLX Energy: Jumps on merger deal with Quintana Energy Services ** Goldman Sachs Group Inc GS.N: down 1.3% premarket ** JPMorgan Chase & Co JPM.N: down 2.0% premarket ** Citi C.N: down 2.7% premarket ** Wells Fargo WFC.N: down 2.4% premarket ** Bank of America BAC.N: down 2.3% premarket ** Morgan Stanley MS.N: down 2.0% premarket BUZZ-Big banks fall as Treasury yields drop amid risk-off mood ** Delta Air Lines DAL.N: down 10.0% premarket ** American Airlines Co AAL.O: down 10.5% premarket ** Southwest Airlines Co LUV.N: down 8.7% premarket ** United Airlines UAL.O: down 10.6% premarket ** Spirit Airlines SAVE.N: down 8.4% premarket ** JetBlue JBLU.O: down 9.6% premarket ** Alaska Air ALK.N: down 8.8% premarket BUZZ-Airline stocks plunge after Buffett dumps stakes ** AbbVie Inc ABBV.N: down 0.4% premarket ** Allergan Plc AGN.N: down 2.4% premarket BUZZ-Street View: Humira, Skyrizi strength drive AbbVie results as usual ** Co-Diagnostics CODX.O: up 7.6% premarket BUZZ-Co-Diagnostics: Jumps on approvals for COVID-19 tests in Mexico, India ** Canopy Growth Corp CGC.N: up 7.1% premarket BUZZ-Pot producer Canopy Growth climbs as Constellation Brands ups stake
(Compiled by Trisha Roy in Bengaluru)
((Trisha.Roy@thomsonreuters.com; within U.S. +1 646 223 8780, outside U.S. +91 80 6182 3635;))
The views and 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: ** Quintana Energy Services Inc QES.N, up 15.7% ** ASE Technology Holding Co Ltd ASX.N, up 11.5% ** Pennsylvania Real Estate Investment Trust PEI.N, up 8.3% The top three NYSE percentage losers premarket .PRPL.NQ: ** Flagstar Bancorp Inc FBC.N, down 13.5% ** TETRA Technologies Inc TTI.N, down 10.9% ** AMC Entertainment Holdings Inc AMC.N, down 10.7% The top three Nasdaq percentage gainers premarket .PRPG.O: ** Stemline Therapeutics Inc STML.O, up 148.6% ** Netscout Systems Inc NTCT.O, up 132.1% ** Microvision Inc MVIS.O, up 90.6% The top three Nasdaq percentage losers premarket .PRPL.O: ** Tristate Capital Holdings Inc TSC.O, down 28.6% ** Company name not found MDGS.O, down 19.7% ** Francesca's Holdings Corp FRAN.O, down 16.6% ** Boeing BA.N: down 4.5% premarket BUZZ-Aerospace & Defence: Berenberg does not see through to a new normal ** Exxon Mobil Corp XOM.N: down 2.3% premarket ** Chevron Corp CVX.N: down 3.0% premarket BUZZ-Street View: Exxon is taking the correct, patient approach BUZZ-Street View: Chevron's cash flow to help co weather near-term headwinds ** Teladoc Health Inc TDOC.N: up 2.3% premarket BUZZ-Creating patient awareness biggest challenge for telemedicine - GlobalData ** KLX Energy Services Holdings Inc KLXE.O: up 41.7% premarket ** Quintana Energy Services QES.N: up 15.7% premarket BUZZ-KLX Energy: Jumps on merger deal with Quintana Energy Services ** Goldman Sachs Group Inc GS.N: down 1.3% premarket ** JPMorgan Chase & Co JPM.N: down 2.0% premarket ** Citi C.N: down 2.7% premarket ** Wells Fargo WFC.N: down 2.4% premarket ** Bank of America BAC.N: down 2.3% premarket ** Morgan Stanley MS.N: down 2.0% premarket BUZZ-Big banks fall as Treasury yields drop amid risk-off mood ** Delta Air Lines DAL.N: down 10.0% premarket ** American Airlines Co AAL.O: down 10.5% premarket ** Southwest Airlines Co LUV.N: down 8.7% premarket ** United Airlines UAL.O: down 10.6% premarket ** Spirit Airlines SAVE.N: down 8.4% premarket ** JetBlue JBLU.O: down 9.6% premarket ** Alaska Air ALK.N: down 8.8% premarket BUZZ-Airline stocks plunge after Buffett dumps stakes ** AbbVie Inc ABBV.N: down 0.4% premarket ** Allergan Plc AGN.N: down 2.4% premarket BUZZ-Street View: Humira, Skyrizi strength drive AbbVie results as usual ** Co-Diagnostics CODX.O: up 7.6% premarket BUZZ-Co-Diagnostics: Jumps on approvals for COVID-19 tests in Mexico, India ** Canopy Growth Corp CGC.N: up 7.1% premarket BUZZ-Pot producer Canopy Growth climbs as Constellation Brands ups stake (Compiled by Trisha Roy in Bengaluru) ((Trisha.Roy@thomsonreuters.com; within U.S. +1 646 223 8780, outside U.S. +91 80 6182 3635;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Eikon search string for individual stock moves: STXBZ The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh U.S. stock index futures retreated on Monday after a fresh spat between Washington and Beijing over the origin of the novel coronavirus, while airlines slumped as Berkshire Hathaway dumped its holdings in the sector. .N At 7:46 ET, Dow e-minis 1YMc1 were down 1.04% at 23,373.
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The top three NYSE percentage gainers premarket .PRPG.NQ: ** Quintana Energy Services Inc QES.N, up 15.7% ** ASE Technology Holding Co Ltd ASX.N, up 11.5% ** Pennsylvania Real Estate Investment Trust PEI.N, up 8.3% The top three NYSE percentage losers premarket .PRPL.NQ: ** Flagstar Bancorp Inc FBC.N, down 13.5% ** TETRA Technologies Inc TTI.N, down 10.9% ** AMC Entertainment Holdings Inc AMC.N, down 10.7% The top three Nasdaq percentage gainers premarket .PRPG.O: ** Stemline Therapeutics Inc STML.O, up 148.6% ** Netscout Systems Inc NTCT.O, up 132.1% ** Microvision Inc MVIS.O, up 90.6% The top three Nasdaq percentage losers premarket .PRPL.O: ** Tristate Capital Holdings Inc TSC.O, down 28.6% ** Company name not found MDGS.O, down 19.7% ** Francesca's Holdings Corp FRAN.O, down 16.6% ** Boeing BA.N: down 4.5% premarket BUZZ-Aerospace & Defence: Berenberg does not see through to a new normal ** Exxon Mobil Corp XOM.N: down 2.3% premarket ** Chevron Corp CVX.N: down 3.0% premarket BUZZ-Street View: Exxon is taking the correct, patient approach BUZZ-Street View: Chevron's cash flow to help co weather near-term headwinds ** Teladoc Health Inc TDOC.N: up 2.3% premarket BUZZ-Creating patient awareness biggest challenge for telemedicine - GlobalData ** KLX Energy Services Holdings Inc KLXE.O: up 41.7% premarket ** Quintana Energy Services QES.N: up 15.7% premarket BUZZ-KLX Energy: Jumps on merger deal with Quintana Energy Services ** Goldman Sachs Group Inc GS.N: down 1.3% premarket ** JPMorgan Chase & Co JPM.N: down 2.0% premarket ** Citi C.N: down 2.7% premarket ** Wells Fargo WFC.N: down 2.4% premarket ** Bank of America BAC.N: down 2.3% premarket ** Morgan Stanley MS.N: down 2.0% premarket BUZZ-Big banks fall as Treasury yields drop amid risk-off mood ** Delta Air Lines DAL.N: down 10.0% premarket ** American Airlines Co AAL.O: down 10.5% premarket ** Southwest Airlines Co LUV.N: down 8.7% premarket ** United Airlines UAL.O: down 10.6% premarket ** Spirit Airlines SAVE.N: down 8.4% premarket ** JetBlue JBLU.O: down 9.6% premarket ** Alaska Air ALK.N: down 8.8% premarket BUZZ-Airline stocks plunge after Buffett dumps stakes ** AbbVie Inc ABBV.N: down 0.4% premarket ** Allergan Plc AGN.N: down 2.4% premarket BUZZ-Street View: Humira, Skyrizi strength drive AbbVie results as usual ** Co-Diagnostics CODX.O: up 7.6% premarket BUZZ-Co-Diagnostics: Jumps on approvals for COVID-19 tests in Mexico, India ** Canopy Growth Corp CGC.N: up 7.1% premarket BUZZ-Pot producer Canopy Growth climbs as Constellation Brands ups stake (Compiled by Trisha Roy in Bengaluru) ((Trisha.Roy@thomsonreuters.com; within U.S. +1 646 223 8780, outside U.S. +91 80 6182 3635;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Eikon search string for individual stock moves: STXBZ The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh U.S. stock index futures retreated on Monday after a fresh spat between Washington and Beijing over the origin of the novel coronavirus, while airlines slumped as Berkshire Hathaway dumped its holdings in the sector. S&P 500 e-minis ESc1 were down 0.76% at 2,800.25, while Nasdaq 100 e-minis NQc1 were down 0.73% at 8,654.
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The top three NYSE percentage gainers premarket .PRPG.NQ: ** Quintana Energy Services Inc QES.N, up 15.7% ** ASE Technology Holding Co Ltd ASX.N, up 11.5% ** Pennsylvania Real Estate Investment Trust PEI.N, up 8.3% The top three NYSE percentage losers premarket .PRPL.NQ: ** Flagstar Bancorp Inc FBC.N, down 13.5% ** TETRA Technologies Inc TTI.N, down 10.9% ** AMC Entertainment Holdings Inc AMC.N, down 10.7% The top three Nasdaq percentage gainers premarket .PRPG.O: ** Stemline Therapeutics Inc STML.O, up 148.6% ** Netscout Systems Inc NTCT.O, up 132.1% ** Microvision Inc MVIS.O, up 90.6% The top three Nasdaq percentage losers premarket .PRPL.O: ** Tristate Capital Holdings Inc TSC.O, down 28.6% ** Company name not found MDGS.O, down 19.7% ** Francesca's Holdings Corp FRAN.O, down 16.6% ** Boeing BA.N: down 4.5% premarket BUZZ-Aerospace & Defence: Berenberg does not see through to a new normal ** Exxon Mobil Corp XOM.N: down 2.3% premarket ** Chevron Corp CVX.N: down 3.0% premarket BUZZ-Street View: Exxon is taking the correct, patient approach BUZZ-Street View: Chevron's cash flow to help co weather near-term headwinds ** Teladoc Health Inc TDOC.N: up 2.3% premarket BUZZ-Creating patient awareness biggest challenge for telemedicine - GlobalData ** KLX Energy Services Holdings Inc KLXE.O: up 41.7% premarket ** Quintana Energy Services QES.N: up 15.7% premarket BUZZ-KLX Energy: Jumps on merger deal with Quintana Energy Services ** Goldman Sachs Group Inc GS.N: down 1.3% premarket ** JPMorgan Chase & Co JPM.N: down 2.0% premarket ** Citi C.N: down 2.7% premarket ** Wells Fargo WFC.N: down 2.4% premarket ** Bank of America BAC.N: down 2.3% premarket ** Morgan Stanley MS.N: down 2.0% premarket BUZZ-Big banks fall as Treasury yields drop amid risk-off mood ** Delta Air Lines DAL.N: down 10.0% premarket ** American Airlines Co AAL.O: down 10.5% premarket ** Southwest Airlines Co LUV.N: down 8.7% premarket ** United Airlines UAL.O: down 10.6% premarket ** Spirit Airlines SAVE.N: down 8.4% premarket ** JetBlue JBLU.O: down 9.6% premarket ** Alaska Air ALK.N: down 8.8% premarket BUZZ-Airline stocks plunge after Buffett dumps stakes ** AbbVie Inc ABBV.N: down 0.4% premarket ** Allergan Plc AGN.N: down 2.4% premarket BUZZ-Street View: Humira, Skyrizi strength drive AbbVie results as usual ** Co-Diagnostics CODX.O: up 7.6% premarket BUZZ-Co-Diagnostics: Jumps on approvals for COVID-19 tests in Mexico, India ** Canopy Growth Corp CGC.N: up 7.1% premarket BUZZ-Pot producer Canopy Growth climbs as Constellation Brands ups stake (Compiled by Trisha Roy in Bengaluru) ((Trisha.Roy@thomsonreuters.com; within U.S. +1 646 223 8780, outside U.S. +91 80 6182 3635;)) 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 7:46 ET, Dow e-minis 1YMc1 were down 1.04% at 23,373. S&P 500 e-minis ESc1 were down 0.76% at 2,800.25, while Nasdaq 100 e-minis NQc1 were down 0.73% at 8,654.
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The top three NYSE percentage gainers premarket .PRPG.NQ: ** Quintana Energy Services Inc QES.N, up 15.7% ** ASE Technology Holding Co Ltd ASX.N, up 11.5% ** Pennsylvania Real Estate Investment Trust PEI.N, up 8.3% The top three NYSE percentage losers premarket .PRPL.NQ: ** Flagstar Bancorp Inc FBC.N, down 13.5% ** TETRA Technologies Inc TTI.N, down 10.9% ** AMC Entertainment Holdings Inc AMC.N, down 10.7% The top three Nasdaq percentage gainers premarket .PRPG.O: ** Stemline Therapeutics Inc STML.O, up 148.6% ** Netscout Systems Inc NTCT.O, up 132.1% ** Microvision Inc MVIS.O, up 90.6% The top three Nasdaq percentage losers premarket .PRPL.O: ** Tristate Capital Holdings Inc TSC.O, down 28.6% ** Company name not found MDGS.O, down 19.7% ** Francesca's Holdings Corp FRAN.O, down 16.6% ** Boeing BA.N: down 4.5% premarket BUZZ-Aerospace & Defence: Berenberg does not see through to a new normal ** Exxon Mobil Corp XOM.N: down 2.3% premarket ** Chevron Corp CVX.N: down 3.0% premarket BUZZ-Street View: Exxon is taking the correct, patient approach BUZZ-Street View: Chevron's cash flow to help co weather near-term headwinds ** Teladoc Health Inc TDOC.N: up 2.3% premarket BUZZ-Creating patient awareness biggest challenge for telemedicine - GlobalData ** KLX Energy Services Holdings Inc KLXE.O: up 41.7% premarket ** Quintana Energy Services QES.N: up 15.7% premarket BUZZ-KLX Energy: Jumps on merger deal with Quintana Energy Services ** Goldman Sachs Group Inc GS.N: down 1.3% premarket ** JPMorgan Chase & Co JPM.N: down 2.0% premarket ** Citi C.N: down 2.7% premarket ** Wells Fargo WFC.N: down 2.4% premarket ** Bank of America BAC.N: down 2.3% premarket ** Morgan Stanley MS.N: down 2.0% premarket BUZZ-Big banks fall as Treasury yields drop amid risk-off mood ** Delta Air Lines DAL.N: down 10.0% premarket ** American Airlines Co AAL.O: down 10.5% premarket ** Southwest Airlines Co LUV.N: down 8.7% premarket ** United Airlines UAL.O: down 10.6% premarket ** Spirit Airlines SAVE.N: down 8.4% premarket ** JetBlue JBLU.O: down 9.6% premarket ** Alaska Air ALK.N: down 8.8% premarket BUZZ-Airline stocks plunge after Buffett dumps stakes ** AbbVie Inc ABBV.N: down 0.4% premarket ** Allergan Plc AGN.N: down 2.4% premarket BUZZ-Street View: Humira, Skyrizi strength drive AbbVie results as usual ** Co-Diagnostics CODX.O: up 7.6% premarket BUZZ-Co-Diagnostics: Jumps on approvals for COVID-19 tests in Mexico, India ** Canopy Growth Corp CGC.N: up 7.1% premarket BUZZ-Pot producer Canopy Growth climbs as Constellation Brands ups stake (Compiled by Trisha Roy in Bengaluru) ((Trisha.Roy@thomsonreuters.com; within U.S. +1 646 223 8780, outside U.S. +91 80 6182 3635;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Eikon search string for individual stock moves: STXBZ The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh U.S. stock index futures retreated on Monday after a fresh spat between Washington and Beijing over the origin of the novel coronavirus, while airlines slumped as Berkshire Hathaway dumped its holdings in the sector. .N At 7:46 ET, Dow e-minis 1YMc1 were down 1.04% at 23,373.
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adfb0a6c-7a7c-4b48-9d73-ec7e6e2895df
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5947.0
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2020-05-04 00:00:00 UTC
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Futures hit by U.S.-China tension; airlines tumble as Berkshire pulls away
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AAL
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https://www.nasdaq.com/articles/futures-hit-by-u.s.-china-tension-airlines-tumble-as-berkshire-pulls-away-2020-05-04
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nan
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nan
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By Shreyashi Sanyal and Medha Singh
May 4 (Reuters) - U.S. stock index futures retreated on Monday after a fresh spat between Washington and Beijing over the origin of the novel coronavirus, while airlines slumped as Berkshire Hathaway dumped its holdings in the sector.
Delta Air Lines DAL.N, American Airlines Co AAL.O, Southwest Airlines Co LUV.N and United Airlines UAL.O fell between 8% and 11% in premarket trading, adding to their woes as air travel remains restricted due to the COVID-19 pandemic.
Warren Buffett-backed Berkshire's BRKa.N move also shaved more than 5% off planemaker Boeing Co's BA.N shares.
Berkshire Hathaway itself posted a record quarterly net loss of nearly $50 billion and said its performance was suffering in several major operating businesses. Its shares fell 1.4%.
Over the weekend, U.S. Secretary of State Mike Pompeo said there was "a significant amount of evidence" that the coronavirus emerged from a Chinese laboratory, but did not dispute U.S. intelligence agencies' conclusion that it was not man-made. An editorial in China's Global Times said Pompeo was "bluffing".
Pompeo's statement comes after Wall Street started May on a grim note as President Donald Trump revived a threat of new tariffs against China in response to the COVID-19 pandemic.
"When you think how nervous markets got about the U.S.-China trade war then if this theme continues you can't help thinking that the end game is far worse than it would be from a simple trade war," said Jim Reid, a strategist at Deutsche Bank.
The S&P 500 index's .SPX 29% recovery from its March lows stands to be tested as investors weigh renewed U.S.-China tensions and the economic damage of the health crisis.
At 7:28 a.m. ET, Dow e-minis 1YMcv1 were down 267 points, or 1.13%. S&P 500 e-minis EScv1 were down 24 points, or 0.85% and Nasdaq 100 e-minis NQcv1 were down 74 points, or 0.85%.
Investors are also awaiting factory orders data for March, which is expected to show a sharp decline.
With more than half of the S&P 500 companies having reported earnings so far, analysts now see first-quarter S&P 500 earnings falling 12.7% from a year ago, and an even sharper 37.8% decline for the second quarter.
(Reporting by Shreyashi Sanyal and Medha Singh in Bengaluru; Editing by Saumyadeb Chakrabarty)
((Shreyashi.Sanyal@thomsonreuters.com; +1 646 223 8780; +91 961 144 3740; Twitter: https://twitter.com/s_shreyashi))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Delta Air Lines DAL.N, American Airlines Co AAL.O, Southwest Airlines Co LUV.N and United Airlines UAL.O fell between 8% and 11% in premarket trading, adding to their woes as air travel remains restricted due to the COVID-19 pandemic. By Shreyashi Sanyal and Medha Singh May 4 (Reuters) - U.S. stock index futures retreated on Monday after a fresh spat between Washington and Beijing over the origin of the novel coronavirus, while airlines slumped as Berkshire Hathaway dumped its holdings in the sector. Over the weekend, U.S. Secretary of State Mike Pompeo said there was "a significant amount of evidence" that the coronavirus emerged from a Chinese laboratory, but did not dispute U.S. intelligence agencies' conclusion that it was not man-made.
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Delta Air Lines DAL.N, American Airlines Co AAL.O, Southwest Airlines Co LUV.N and United Airlines UAL.O fell between 8% and 11% in premarket trading, adding to their woes as air travel remains restricted due to the COVID-19 pandemic. By Shreyashi Sanyal and Medha Singh May 4 (Reuters) - U.S. stock index futures retreated on Monday after a fresh spat between Washington and Beijing over the origin of the novel coronavirus, while airlines slumped as Berkshire Hathaway dumped its holdings in the sector. S&P 500 e-minis EScv1 were down 24 points, or 0.85% and Nasdaq 100 e-minis NQcv1 were down 74 points, or 0.85%.
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Delta Air Lines DAL.N, American Airlines Co AAL.O, Southwest Airlines Co LUV.N and United Airlines UAL.O fell between 8% and 11% in premarket trading, adding to their woes as air travel remains restricted due to the COVID-19 pandemic. By Shreyashi Sanyal and Medha Singh May 4 (Reuters) - U.S. stock index futures retreated on Monday after a fresh spat between Washington and Beijing over the origin of the novel coronavirus, while airlines slumped as Berkshire Hathaway dumped its holdings in the sector. S&P 500 e-minis EScv1 were down 24 points, or 0.85% and Nasdaq 100 e-minis NQcv1 were down 74 points, or 0.85%.
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Delta Air Lines DAL.N, American Airlines Co AAL.O, Southwest Airlines Co LUV.N and United Airlines UAL.O fell between 8% and 11% in premarket trading, adding to their woes as air travel remains restricted due to the COVID-19 pandemic. By Shreyashi Sanyal and Medha Singh May 4 (Reuters) - U.S. stock index futures retreated on Monday after a fresh spat between Washington and Beijing over the origin of the novel coronavirus, while airlines slumped as Berkshire Hathaway dumped its holdings in the sector. Berkshire Hathaway itself posted a record quarterly net loss of nearly $50 billion and said its performance was suffering in several major operating businesses.
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9a8a2d68-f67d-4f4e-97f9-24a69d1c5e1f
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5948.0
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2020-05-04 00:00:00 UTC
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Why Airline Shares Fell in April
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AAL
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https://www.nasdaq.com/articles/why-airline-shares-fell-in-april-2020-05-04
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nan
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nan
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What happened
Airline stocks remained under pressure through much of April, as the full impact of the COVID-19 pandemic on travel and tourism became increasingly clear. The companies found themselves scrambling to cut costs and raise cash, and investors rushed for the emergency exits.
Shares of Southwest Airlines (NYSE: LUV) lost 12.2% for the month, according to data from S&P Global Market Intelligence, while shares of Delta Air Lines (NYSE: DAL) were down 9.2%, shares of United Airlines Holdings (NASDAQ: UAL) fell 6.2%, and American Airlines Group (NASDAQ: AAL) ended the month down 1.5%. By comparison, the S&P 500 was up 12.7% for the month.
The declines marked the second straight miserable month for the stocks, with the airlines falling between 22% and 48% in March.
So what
In March, airline stocks fell because investors were worried about what the pandemic would do to travel. In April, the stocks fell because those fears were confirmed. Despite securing $50 billion in aid from the U.S. government, the shares remained under pressure, in part because the government was able to extract warrants and other concessions in return for its largess, and in part because the airlines warned that the funds might not be enough.
Image source: Getty Images.
Delta was burning through $60 million per day. Southwest warned of potential layoffs, a step the company was able to avoid following the attacks of Sept. 11. United said it was making plans to permanently become a smaller airline. American Airlines lost $2.2 billion in three months.
The entire industry is currently trying to wait out the pandemic without running out of cash, and then adjusting once they find out how much, and how quickly, traffic demand returns once the outbreak is contained. By then the U.S. economy is likely to be in a recession, and the industry has performed poorly in past recessions. Despite the government aid and the billions in cost cuts, the airlines have accomplished through grounding planes and cutting flights, investors remain concerned bankruptcies are possible.
Now what
Early May has offered little relief for airline investors. The stocks fell on May 1, and on May 2 Warren Buffett announced that Berkshire Hathaway had sold its massive stakes in the big four airlines down to zero.
Buffett during Berkshire's annual meeting was not critical of the airline business practices, or management, but rather concluded the industry faces unprecedented challenges. "The world has changed for airlines, and I wish them well," he said, predicting the industry would have to shed significant portions of their fleets, and a lot of jobs, in the years to come.
The world has certainly changed, and based on the falling share prices Berkshire is hardly the only airline shareholder to give up on the industry in recent months. I remain cautiously optimistic that traffic will return to sufficient levels to allow the airlines to limp through without bankruptcy filings, but the outlook is difficult and even in the best-case scenario we are looking at a multiyear recovery. And until there is more certainty, it is going to be hard for these stocks to find a bottom.
If investors dare fly into this turbulent sector, I'd advise sticking with top operators like Delta and Southwest to try to minimize some of the risk.
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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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Shares of Southwest Airlines (NYSE: LUV) lost 12.2% for the month, according to data from S&P Global Market Intelligence, while shares of Delta Air Lines (NYSE: DAL) were down 9.2%, shares of United Airlines Holdings (NASDAQ: UAL) fell 6.2%, and American Airlines Group (NASDAQ: AAL) ended the month down 1.5%. Buffett during Berkshire's annual meeting was not critical of the airline business practices, or management, but rather concluded the industry faces unprecedented challenges. The world has certainly changed, and based on the falling share prices Berkshire is hardly the only airline shareholder to give up on the industry in recent months.
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Shares of Southwest Airlines (NYSE: LUV) lost 12.2% for the month, according to data from S&P Global Market Intelligence, while shares of Delta Air Lines (NYSE: DAL) were down 9.2%, shares of United Airlines Holdings (NASDAQ: UAL) fell 6.2%, and American Airlines Group (NASDAQ: AAL) ended the month down 1.5%. See the 10 stocks *Stock Advisor returns as of April 16, 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), 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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Shares of Southwest Airlines (NYSE: LUV) lost 12.2% for the month, according to data from S&P Global Market Intelligence, while shares of Delta Air Lines (NYSE: DAL) were down 9.2%, shares of United Airlines Holdings (NASDAQ: UAL) fell 6.2%, and American Airlines Group (NASDAQ: AAL) ended the month down 1.5%. See the 10 stocks *Stock Advisor returns as of April 16, 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), 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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Shares of Southwest Airlines (NYSE: LUV) lost 12.2% for the month, according to data from S&P Global Market Intelligence, while shares of Delta Air Lines (NYSE: DAL) were down 9.2%, shares of United Airlines Holdings (NASDAQ: UAL) fell 6.2%, and American Airlines Group (NASDAQ: AAL) ended the month down 1.5%. Despite the government aid and the billions in cost cuts, the airlines have accomplished through grounding planes and cutting flights, investors remain concerned bankruptcies are possible. The stocks fell on May 1, and on May 2 Warren Buffett announced that Berkshire Hathaway had sold its massive stakes in the big four airlines down to zero.
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ffc75bf5-e158-4e12-ab40-d860bf521fab
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5949.0
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2020-05-04 00:00:00 UTC
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S&P 500, Dow dip as Buffett dumps airlines, China tensions flare
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AAL
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https://www.nasdaq.com/articles/sp-500-dow-dip-as-buffett-dumps-airlines-china-tensions-flare-2020-05-04
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nan
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nan
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By Shreyashi Sanyal and Medha Singh
May 4 (Reuters) - The S&P 500 and Dow Jones indexes retreated on Monday following a U.S.-China spat about the origins of the coronavirus outbreak, while major carriers slumped after billionaire Warren Buffett's Berkshire Hathaway dumped its stakes in the sector.
Delta Air Lines DAL.N, American Airlines Co AAL.O, Southwest Airlines Co LUV.N and United Airlines UAL.O fell between 6.7% and 8.4%, after Buffett told reporters of the move over the weekend, saying "the world has changed" for the industry.
Berkshire's BRKa.N announcement also shaved more than 1.9% off planemaker Boeing Co's BA.N shares. The S&P 1500 airlines sub-index .SPCOMAIR plunged 5.1% and was on track for its worst day more than a month.
Berkshire itself posted a record loss of nearly $50 billion, sending its shares down 2% and weighing heavily on the financials sector.
Randy Frederick, vice president of trading and derivatives for Charles Schwab in Austin, said Buffett's relatively bleak reading of the market had hit home with investors.
"I did not get the sense that he sees an enormous amount of opportunity out there right now, but is instead holding up a very high level of cash," he said.
Nine of the major 11 S&P 500 sectors were trading lower, also pressured by comments from U.S. Secretary of State Mike Pompeo that there was "a significant amount of evidence" the new coronavirus emerged from a Chinese laboratory. An editorial in China's Global Times said he was "bluffing".
All three major stock indexes clawed back more than 11% in April, but the rally is likely to be tested in the coming weeks with investors trying to gauge the pace of an economic recovery as states start emerging from lockdowns.
Data on Monday showed new orders for U.S.-made goods fell more than expected in March and could sink further as the health crisis upends supply chains and exports.
"When you think how nervous markets got about the U.S.-China trade war then if this theme continues you can't help thinking that the end game is far worse than it would be from a simple trade war," said Jim Reid, a strategist at Deutsche Bank.
At 10:18 a.m. ET the Dow Jones Industrial Average .DJI was down 126.91 points, or 0.53%, at 23,596.78 and the S&P 500 .SPX was down 4.17 points, or 0.15%, at 2,826.54. However, the Nasdaq Composite .IXIC was up 54.43 points, or 0.63%, at 8,659.38.
With more than half of the S&P 500 companies having reported earnings so far, analysts now see first-quarter S&P 500 earnings falling 12.7% from a year ago, and an even sharper 37.8% decline for the second quarter.
Tyson Foods Inc TSN.N tumbled 7.5% as the company said it would temporarily close plants as needed and expects meat sales to fall in the second half of this year as shutdowns hammer restaurants and other food outlets.
Declining issues nearly matched advancers on the NYSE and the Nasdaq.
The S&P index recorded no new 52-week high and three new lows, while the Nasdaq recorded 11 new highs and eight new lows.
(Reporting by Shreyashi Sanyal and Medha Singh in Bengaluru; Editing by Saumyadeb Chakrabarty)
((Shreyashi.Sanyal@thomsonreuters.com; +1 646 223 8780; +91 961 144 3740; Twitter: https://twitter.com/s_shreyashi))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Delta Air Lines DAL.N, American Airlines Co AAL.O, Southwest Airlines Co LUV.N and United Airlines UAL.O fell between 6.7% and 8.4%, after Buffett told reporters of the move over the weekend, saying "the world has changed" for the industry. By Shreyashi Sanyal and Medha Singh May 4 (Reuters) - The S&P 500 and Dow Jones indexes retreated on Monday following a U.S.-China spat about the origins of the coronavirus outbreak, while major carriers slumped after billionaire Warren Buffett's Berkshire Hathaway dumped its stakes in the sector. Nine of the major 11 S&P 500 sectors were trading lower, also pressured by comments from U.S. Secretary of State Mike Pompeo that there was "a significant amount of evidence" the new coronavirus emerged from a Chinese laboratory.
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Delta Air Lines DAL.N, American Airlines Co AAL.O, Southwest Airlines Co LUV.N and United Airlines UAL.O fell between 6.7% and 8.4%, after Buffett told reporters of the move over the weekend, saying "the world has changed" for the industry. By Shreyashi Sanyal and Medha Singh May 4 (Reuters) - The S&P 500 and Dow Jones indexes retreated on Monday following a U.S.-China spat about the origins of the coronavirus outbreak, while major carriers slumped after billionaire Warren Buffett's Berkshire Hathaway dumped its stakes in the sector. The S&P index recorded no new 52-week high and three new lows, while the Nasdaq recorded 11 new highs and eight new lows.
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Delta Air Lines DAL.N, American Airlines Co AAL.O, Southwest Airlines Co LUV.N and United Airlines UAL.O fell between 6.7% and 8.4%, after Buffett told reporters of the move over the weekend, saying "the world has changed" for the industry. By Shreyashi Sanyal and Medha Singh May 4 (Reuters) - The S&P 500 and Dow Jones indexes retreated on Monday following a U.S.-China spat about the origins of the coronavirus outbreak, while major carriers slumped after billionaire Warren Buffett's Berkshire Hathaway dumped its stakes in the sector. The S&P index recorded no new 52-week high and three new lows, while the Nasdaq recorded 11 new highs and eight new lows.
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Delta Air Lines DAL.N, American Airlines Co AAL.O, Southwest Airlines Co LUV.N and United Airlines UAL.O fell between 6.7% and 8.4%, after Buffett told reporters of the move over the weekend, saying "the world has changed" for the industry. By Shreyashi Sanyal and Medha Singh May 4 (Reuters) - The S&P 500 and Dow Jones indexes retreated on Monday following a U.S.-China spat about the origins of the coronavirus outbreak, while major carriers slumped after billionaire Warren Buffett's Berkshire Hathaway dumped its stakes in the sector. Berkshire itself posted a record loss of nearly $50 billion, sending its shares down 2% and weighing heavily on the financials sector.
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2020-05-04 00:00:00 UTC
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U.S. airline shares tumble as Buffett stake sell-off fuels investor worries
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https://www.nasdaq.com/articles/u.s.-airline-shares-tumble-as-buffett-stake-sell-off-fuels-investor-worries-2020-05-04
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Adds details about airline debt, quotes from analyst, shareholder, updates shares with price after open
May 4 (Reuters) - Shares of the top four U.S. airlines dropped on Monday after billionaire investor Warren Buffett said Berkshire Hathaway BRKa.N offloaded its entire stake in the carriers last month, adding to the sense of crisis around the industry.
U.S. airlines posted considerable losses in the first quarter, and are on track for a dismal second quarter, as travel restrictions and government-mandated lockdowns across the world have brought demand to a virtual standstill.
"The world has changed" for the aviation industry, Buffett said at Berkshire Hathaway's annual meeting on Saturday.
American Airlines AAL.O has posted a $2.2 billion net loss, its first quarterly loss since emerging from bankruptcy in 2013, while United Airlines UAL.O reported a loss of $1.7 billion for its first quarter.
Shares in Delta Air Lines DAL.N American Airlines and United Airlines were all down more than 13% after the start of tradingwhile Southwest Airlines Co LUV.Nwas down 9%.
“Investors looking at the (airlines) group, are technicians, traders, people buying distress for fairly quick bounces,” said Chuck Carlson, chief executive at investment adviser Horizon Investment Services LLC, which held Southwest shares until a month ago.
“Long-term investors are saying ‘Do I want to sit with airline stocks, that may take four to five years for sustained moves upward, or put my money elsewhere,’" said Carlson. "They may feel some new opportunities have developed that are better than things they are holding and can rebound more quickly.”
The S&P 1500 Airlines index .SPCOMAIR has lost 57.4% this year, compared with a 12.4% decline in the broader S&P 500 .SPX.
Vertical Research Partners analyst Robert Stallard said the worst is yet to come for the sector given that many airlines have cut capacity around 90% for April and May.
"Until we get some clarity and stability from the global airline sector, we think it is hard to gauge how deep and wide this aerospace canyon is going to be," Stallard said.
Airline executives have warned of a slow recovery even after the virus is contained and have said demand may not recover to 2019 levels for years.
Airlines in the United States have seen a near 95% drop in domestic passengers and are now working to reassure customers about the safety of air travel by instituting new cleaning and social distancing procedures.
Data from Dealogic shows that globally airlines have about $10 billion in bonds due to expire in 2020 and $4.7 billion in loans.
Berkshire Hathaway had held an 11% stake in Delta, 10% in American, 10% in Southwest and 9% in United at the end of 2019, according to its annual report and company filings.
(Reporting by Sanjana Shivdas and Ankit Ajmera in Bengaluru, Jessica DiNapoli in New York and Scott Murdoch in Hong Kong; Editing by Maju Samuel, Megan Davies and Jonathan Oatis)
((SanjanaSitara.Shivdas@thomsonreuters.com; within U.S. +1 646 223 8780, outside U.S. +91 80 6749 1642; Twitter: @SanjanaShivdas;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines AAL.O has posted a $2.2 billion net loss, its first quarterly loss since emerging from bankruptcy in 2013, while United Airlines UAL.O reported a loss of $1.7 billion for its first quarter. Adds details about airline debt, quotes from analyst, shareholder, updates shares with price after open May 4 (Reuters) - Shares of the top four U.S. airlines dropped on Monday after billionaire investor Warren Buffett said Berkshire Hathaway BRKa.N offloaded its entire stake in the carriers last month, adding to the sense of crisis around the industry. Airlines in the United States have seen a near 95% drop in domestic passengers and are now working to reassure customers about the safety of air travel by instituting new cleaning and social distancing procedures.
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American Airlines AAL.O has posted a $2.2 billion net loss, its first quarterly loss since emerging from bankruptcy in 2013, while United Airlines UAL.O reported a loss of $1.7 billion for its first quarter. Shares in Delta Air Lines DAL.N American Airlines and United Airlines were all down more than 13% after the start of tradingwhile Southwest Airlines Co LUV.Nwas down 9%. Berkshire Hathaway had held an 11% stake in Delta, 10% in American, 10% in Southwest and 9% in United at the end of 2019, according to its annual report and company filings.
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American Airlines AAL.O has posted a $2.2 billion net loss, its first quarterly loss since emerging from bankruptcy in 2013, while United Airlines UAL.O reported a loss of $1.7 billion for its first quarter. Adds details about airline debt, quotes from analyst, shareholder, updates shares with price after open May 4 (Reuters) - Shares of the top four U.S. airlines dropped on Monday after billionaire investor Warren Buffett said Berkshire Hathaway BRKa.N offloaded its entire stake in the carriers last month, adding to the sense of crisis around the industry. Shares in Delta Air Lines DAL.N American Airlines and United Airlines were all down more than 13% after the start of tradingwhile Southwest Airlines Co LUV.Nwas down 9%.
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American Airlines AAL.O has posted a $2.2 billion net loss, its first quarterly loss since emerging from bankruptcy in 2013, while United Airlines UAL.O reported a loss of $1.7 billion for its first quarter. Shares in Delta Air Lines DAL.N American Airlines and United Airlines were all down more than 13% after the start of tradingwhile Southwest Airlines Co LUV.Nwas down 9%. Berkshire Hathaway had held an 11% stake in Delta, 10% in American, 10% in Southwest and 9% in United at the end of 2019, according to its annual report and company filings.
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2020-05-04 00:00:00 UTC
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Wall St returns to losses as Buffett dumps airlines, China tensions flare
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https://www.nasdaq.com/articles/wall-st-returns-to-losses-as-buffett-dumps-airlines-china-tensions-flare-2020-05-04
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By Shreyashi Sanyal and Medha Singh
May 4 (Reuters) - U.S. stocks were set to fall on Monday as a U.S.-Chinese spat about the origins of the coronavirus outbreak worsened while billionaire Warren Buffett's admission he had dumped his airline shares crushed major U.S. carriers.
Delta Air Lines DAL.N, American Airlines Co AAL.O, Southwest Airlines Co LUV.N and United Airlines UAL.O fell between 9% and 11% in premarket, after Berkshire Hathaway BRKa.N chief Buffett told reporters of the move over the weekend, saying "the world has changed" for the industry.
The comments, and fall in airline operators, also shaved more than 4.7% off planemaker Boeing Co's BA.N shares.
Berkshire itself posted a record loss of nearly $50 billion and Randy Frederick, vice president of trading and derivatives for Charles Schwab in Austin, said Buffett's relatively bleak reading of the market had hit home with investors.
"I did not get the sense that he sees an enormous amount of opportunity out there right now, but is instead holding up a very high level of cash," he said.
On China, U.S. Secretary of State Mike Pompeo said there was "a significant amount of evidence" that the coronavirus emerged from a Chinese laboratory. An editorial in China's Global Times said Pompeo was "bluffing".
The statements follow a grim start to May for Wall Street last week as President Donald Trump revived the threat of new tariffs against China in response to the COVID-19 pandemic.
"When you think how nervous markets got about the U.S.-China trade war then if this theme continues you can't help thinking that the end game is far worse than it would be from a simple trade war," said Jim Reid, a strategist at Deutsche Bank.
The S&P 500 index's .SPX 29% recovery from its March lows stands to be tested as investors weigh renewed U.S.-China tensions and the economic damage of the health crisis.
At 8:51 a.m. ET, Dow e-minis 1YMcv1 were down 225 points, or 0.95%, S&P 500 e-minis EScv1 were down 18.5 points, or 0.66% and Nasdaq 100 e-minis NQcv1 were down 52.5 points, or 0.60%.
Investors are also awaiting factory orders data for March, which is expected to show a sharp decline.
With more than half of the S&P 500 companies having reported earnings so far, analysts now see first-quarter S&P 500 earnings falling 12.7% from a year ago, and an even sharper 37.8% decline for the second quarter.
Tyson Foods Inc TSN.N tumbled 7.3% as the company said it would temporarily close plants as needed and expects meat sales to fall in the second half of this year as shutdowns hammer restaurants and other food outlets.
(Reporting by Shreyashi Sanyal and Medha Singh in Bengaluru; Editing by Saumyadeb Chakrabarty)
((Shreyashi.Sanyal@thomsonreuters.com; +1 646 223 8780; +91 961 144 3740; Twitter: https://twitter.com/s_shreyashi))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Delta Air Lines DAL.N, American Airlines Co AAL.O, Southwest Airlines Co LUV.N and United Airlines UAL.O fell between 9% and 11% in premarket, after Berkshire Hathaway BRKa.N chief Buffett told reporters of the move over the weekend, saying "the world has changed" for the industry. By Shreyashi Sanyal and Medha Singh May 4 (Reuters) - U.S. stocks were set to fall on Monday as a U.S.-Chinese spat about the origins of the coronavirus outbreak worsened while billionaire Warren Buffett's admission he had dumped his airline shares crushed major U.S. carriers. Berkshire itself posted a record loss of nearly $50 billion and Randy Frederick, vice president of trading and derivatives for Charles Schwab in Austin, said Buffett's relatively bleak reading of the market had hit home with investors.
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Delta Air Lines DAL.N, American Airlines Co AAL.O, Southwest Airlines Co LUV.N and United Airlines UAL.O fell between 9% and 11% in premarket, after Berkshire Hathaway BRKa.N chief Buffett told reporters of the move over the weekend, saying "the world has changed" for the industry. By Shreyashi Sanyal and Medha Singh May 4 (Reuters) - U.S. stocks were set to fall on Monday as a U.S.-Chinese spat about the origins of the coronavirus outbreak worsened while billionaire Warren Buffett's admission he had dumped his airline shares crushed major U.S. carriers. ET, Dow e-minis 1YMcv1 were down 225 points, or 0.95%, S&P 500 e-minis EScv1 were down 18.5 points, or 0.66% and Nasdaq 100 e-minis NQcv1 were down 52.5 points, or 0.60%.
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Delta Air Lines DAL.N, American Airlines Co AAL.O, Southwest Airlines Co LUV.N and United Airlines UAL.O fell between 9% and 11% in premarket, after Berkshire Hathaway BRKa.N chief Buffett told reporters of the move over the weekend, saying "the world has changed" for the industry. By Shreyashi Sanyal and Medha Singh May 4 (Reuters) - U.S. stocks were set to fall on Monday as a U.S.-Chinese spat about the origins of the coronavirus outbreak worsened while billionaire Warren Buffett's admission he had dumped his airline shares crushed major U.S. carriers. Berkshire itself posted a record loss of nearly $50 billion and Randy Frederick, vice president of trading and derivatives for Charles Schwab in Austin, said Buffett's relatively bleak reading of the market had hit home with investors.
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Delta Air Lines DAL.N, American Airlines Co AAL.O, Southwest Airlines Co LUV.N and United Airlines UAL.O fell between 9% and 11% in premarket, after Berkshire Hathaway BRKa.N chief Buffett told reporters of the move over the weekend, saying "the world has changed" for the industry. By Shreyashi Sanyal and Medha Singh May 4 (Reuters) - U.S. stocks were set to fall on Monday as a U.S.-Chinese spat about the origins of the coronavirus outbreak worsened while billionaire Warren Buffett's admission he had dumped his airline shares crushed major U.S. carriers. The comments, and fall in airline operators, also shaved more than 4.7% off planemaker Boeing Co's BA.N shares.
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2020-05-04 00:00:00 UTC
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Stock Market News: The World Changed for Cruise Companies, Too
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https://www.nasdaq.com/articles/stock-market-news%3A-the-world-changed-for-cruise-companies-too-2020-05-04
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Monday morning brought mixed messages from Wall Street, with investors in some industries remaining more optimistic about the future than investors in others. Many market participants focused on the Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) annual shareholder meeting, at which legendary investor Warren Buffett talked for several hours about the history of the U.S. and the stock market as well as offering his latest views on the economy and the coronavirus pandemic. Shortly before 11 a.m. EDT, the Dow Jones Industrial Average (DJINDICES: ^DJI) was down 228 points to 23,496, and the S&P 500 (SNPINDEX: ^GSPC) had lost 16 points to 2,815. However, the Nasdaq Composite (NASDAQINDEX: ^IXIC) had eked out a gain of 12 points to 8,617.
Buffett's most surprising comments centered on airline stocks, as the Berkshire CEO said that his company had liquidated all of its positions in the four biggest carriers. That sent shares of airlines falling sharply. Interestingly, cruise ship operators Carnival (NYSE: CCL), Royal Caribbean Cruises (NYSE: RCL), and Norwegian Cruise Line Holdings (NYSE: NCLH) didn't see nearly the same extent of losses, even though most of the things that Buffett said about airline stocks are just as relevant to their business models at sea.
Image source: Getty Images.
Big damage to airlines...
The carnage in the airline industry was intense. Carriers Delta Air Lines (NYSE: DAL), American Airlines Group (NASDAQ: AAL), and United Airlines Holdings (NASDAQ: UAL) suffered 9% declines. Southwest Airlines (NYSE: LUV) followed suit with an 8% drop. Aircraft manufacturer Boeing (NYSE: BA) took a less extreme 3% hit, but some aircraft component suppliers fell more sharply.
Buffett tried to explain that he hadn't lost confidence in the ability of airline management teams to do the best they could with the cards that circumstances had dealt them. But he pointed to the huge forces beyond airlines' control that will have a dramatic impact on what happens next in the industry. Moreover, given the substantial leverage among airlines with respect to owning and maintaining expensive fleets of aircraft, even a recovery to 70% to 80% of their former activity levels might not be enough to make their business models work again.
...but not so much for cruise stocks
At first, it looked like cruise stocks would follow suit. Carnival, Royal Caribbean, and Norwegian opened lower by 6% to 9%, but even as airlines remained mired in their losses, the cruise lines bounced back quickly. By 11 a.m. EDT, Carnival was actually up on the day, while Royal Caribbean and Norwegian saw losses of less than 1%.
One cause for optimism came from Carnival, which said it intends to resume service on a phased-in schedule beginning in August. Eight ships will sail from three different ports, two in Florida and one in Texas.
Yet in many ways, Carnival's announcement only showed how well the challenges facing cruise ship stocks line up with airline stocks' woes. The company canceled all of its other cruises through the end of August, and operating a reduced lineup of sailings won't do a huge amount to offset the expenses that are eating through Carnival's available cash. There's no easy way for cruise ship companies to sell off vessels when demand drops, leaving them holding the bag if the industry recovers only partly over the long run.
Losing Buffett's confidence was bad news for airline stocks. But having never had Buffett's confidence in the first place, cruise ship stocks shouldn't exactly be celebrating. The toughest times still lie ahead for both industries, and even a partial victory for their recovery could still be bad news for shareholders.
10 stocks we like better than Carnival
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David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Carnival wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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*Stock Advisor returns as of April 16, 2020
Dan Caplinger owns shares of Berkshire Hathaway (B shares) and Boeing. The Motley Fool owns shares of and recommends Berkshire Hathaway (B shares), Delta Air Lines, and Southwest Airlines. The Motley Fool recommends Carnival 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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Carriers Delta Air Lines (NYSE: DAL), American Airlines Group (NASDAQ: AAL), and United Airlines Holdings (NASDAQ: UAL) suffered 9% declines. Moreover, given the substantial leverage among airlines with respect to owning and maintaining expensive fleets of aircraft, even a recovery to 70% to 80% of their former activity levels might not be enough to make their business models work again. The company canceled all of its other cruises through the end of August, and operating a reduced lineup of sailings won't do a huge amount to offset the expenses that are eating through Carnival's available cash.
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Carriers Delta Air Lines (NYSE: DAL), American Airlines Group (NASDAQ: AAL), and United Airlines Holdings (NASDAQ: UAL) suffered 9% declines. Interestingly, cruise ship operators Carnival (NYSE: CCL), Royal Caribbean Cruises (NYSE: RCL), and Norwegian Cruise Line Holdings (NYSE: NCLH) didn't see nearly the same extent of losses, even though most of the things that Buffett said about airline stocks are just as relevant to their business models at sea. The Motley Fool owns shares of and recommends Berkshire Hathaway (B shares), Delta Air Lines, and Southwest Airlines.
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Carriers Delta Air Lines (NYSE: DAL), American Airlines Group (NASDAQ: AAL), and United Airlines Holdings (NASDAQ: UAL) suffered 9% declines. Interestingly, cruise ship operators Carnival (NYSE: CCL), Royal Caribbean Cruises (NYSE: RCL), and Norwegian Cruise Line Holdings (NYSE: NCLH) didn't see nearly the same extent of losses, even though most of the things that Buffett said about airline stocks are just as relevant to their business models at sea. Yet in many ways, Carnival's announcement only showed how well the challenges facing cruise ship stocks line up with airline stocks' woes.
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Carriers Delta Air Lines (NYSE: DAL), American Airlines Group (NASDAQ: AAL), and United Airlines Holdings (NASDAQ: UAL) suffered 9% declines. Interestingly, cruise ship operators Carnival (NYSE: CCL), Royal Caribbean Cruises (NYSE: RCL), and Norwegian Cruise Line Holdings (NYSE: NCLH) didn't see nearly the same extent of losses, even though most of the things that Buffett said about airline stocks are just as relevant to their business models at sea. * David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Carnival wasn't one of them!
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2020-05-04 00:00:00 UTC
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If You’re Ready to Jump Back into Airlines, Start With DAL Stock
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https://www.nasdaq.com/articles/if-youre-ready-to-jump-back-into-airlines-start-with-dal-stock-2020-05-04
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Is it finally time to start thinking about a position in the airlines? With the country talking about steps to reopen, beaten down stocks are making a rebound, like Delta Air Lines (NYSE:DAL). DAL stock jumped over 12% on April 29 as airlines, cruise companies and more start to rebound.
Source: Markus Mainka / Shutterstock.com
If this rally has legs, DAL stock is the airline investors want to watch. It’s one of the most profitable airlines in the world and is considered a leader in the industry. If it can’t rally, it will be hard for the others to as well.
Delta stock is still more than 56% off its 2020 high. However, that’s better than United Airlines (NASDAQ:UAL), American Airlines (NASDAQ:AAL) and Spirit Airlines (NYSE:SAVE). The only airline doing better is Southwest Airlines (NYSE:LUV), down 47%.
Nimble investors have to be aware of the rotation trade. That is, where the money is rotating into and out of. When the coronavirus was hitting the U.S., money rotated out of everything, but more so out of the industries that would be hit the hardest.
7 Fundamentally Solid Dividend Stocks to Buy
It took some time to figure out what stocks would benefit from the situation, but they eventually went higher too. Names like Kroger (NYSE:KR), Netflix (NASDAQ:NFLX), Roku (NASDAQ:ROKU) and Zoom Video (NASDAQ:ZM).
Now though, money is rotating out of many of these stocks and into the beaten-down stocks. While low-quality companies can have big bounces, I’m still inclined to go with quality. That puts DAL stock on the radar.
Valuing DAL Stock
Click to Enlarge
Source: Chart courtesy of Statista, Source from TSA
There are obvious concerns with DAL stock and all other airlines at the moment. States are starting to reopen, but it’s not something that happens at the snap of one’s fingers. We won’t go back to the way things were overnight.
Airport traffic is down immensely and no one thought this type of economic halt was possible. That’s why so many businesses are under pressure right now — from mom and pop locations to billion-dollar airlines. Obviously the fundamentals look like crap here, but you have to remember, the stock market is a forward-looking investment vehicle.
DAL stock isn’t rallying on the hopes that cash burn will shrink from $100 million per day to “just” $50 million per day. It’s rallying on hopes that airline traffic is hitting a trough and will begin to rebound as we approach summer. It’s rallying on hopes that in six months, business will be reasonably steady and Delta will be operating at a profit.
One problem here is that these next six months — April through September — are the most profitable quarters for Delta. It’s when it generates most of its revenue and free cash flow, and thus, most of its profit.
Seeing those quarters take a hit will be concerning. But the focus is shifting away from Q2 and Q3 to being back on track by Q4. Then focusing on 2021 being business as usual. Current cash burn is a concern, as it’s management’s goal just to get down $50 million in burn per day. However, with federal aid and $6 billion in liquidity at the end of the quarter, Delta should be okay.
There’s a concern that the coronavirus will have another breakout in the fall or winter. If that’s the case, the airlines are in trouble. but for now though, we have to follow the money, and that money is rotating back into DAL stock and its peers.
Trading Delta
Click to Enlarge
Source: Chart courtesy of StockCharts.com
A look at the charts reveals the recent move in Delta.
On Tuesday, the stock broke out over downtrend resistance and the 20-day moving average. That was the first sign that buyers were really stepping into DAL stock in a significant way.
I liked how the stock held $21 support even after reporting a disappointing quarterly result. It was also able to make a series of higher lows (purple arrows).
Now I want to see if the stock can get to and stay above $30. If it can, it will mean that Delta reclaimed its 23.6% retracement. Keep in mind, the broader market has retraced close to two-thirds of the decline. That shows the catch-up potential in the airlines if they really start to rally.
Over $30 puts the declining 50-day moving average near $33 and the 38.2% retracement near $35.65 in play. On a decline, I want to see the 20-day moving average hold as support.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long ROKU.
The post If You’re Ready to Jump Back into Airlines, Start With DAL 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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However, that’s better than United Airlines (NASDAQ:UAL), American Airlines (NASDAQ:AAL) and Spirit Airlines (NYSE:SAVE). With the country talking about steps to reopen, beaten down stocks are making a rebound, like Delta Air Lines (NYSE:DAL). Source: Markus Mainka / Shutterstock.com If this rally has legs, DAL stock is the airline investors want to watch.
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However, that’s better than United Airlines (NASDAQ:UAL), American Airlines (NASDAQ:AAL) and Spirit Airlines (NYSE:SAVE). DAL stock jumped over 12% on April 29 as airlines, cruise companies and more start to rebound. DAL stock isn’t rallying on the hopes that cash burn will shrink from $100 million per day to “just” $50 million per day.
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However, that’s better than United Airlines (NASDAQ:UAL), American Airlines (NASDAQ:AAL) and Spirit Airlines (NYSE:SAVE). InvestorPlace - Stock Market News, Stock Advice & Trading Tips Is it finally time to start thinking about a position in the airlines? Now though, money is rotating out of many of these stocks and into the beaten-down stocks.
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However, that’s better than United Airlines (NASDAQ:UAL), American Airlines (NASDAQ:AAL) and Spirit Airlines (NYSE:SAVE). DAL stock jumped over 12% on April 29 as airlines, cruise companies and more start to rebound. It’s rallying on hopes that airline traffic is hitting a trough and will begin to rebound as we approach summer.
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2020-05-04 00:00:00 UTC
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Stocks End Higher as Oil Prices Rebound
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https://www.nasdaq.com/articles/stocks-end-higher-as-oil-prices-rebound-2020-05-04
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Stocks erased early losses in afternoon trading Monday to close higher, after a rebound in oil prices fueled gains in energy stocks.
The Dow Jones Industrial Average was up 26 points, or 0.1%. The S&P 500 rose 0.4%, and the tech-centric Nasdaq Composite gained 1.2%. Small-cap stocks continued to underperform, with the Russell 2000 up just 0.2%. The small-cap index is down 24% so far this year, compared to the large-cap S&P 500’s 17% drop.
Major U.S. indexes sold off early in the session on the heels of sharp declines in overseas stocks, as some markets reopened after a three-day break. The Hang Seng dropped 4.2% in Hong Kong, and India’s Sensex fell 5.9%. The German DAX fell 3.6% and the French CAC 40 dropped 4.2%.
A rebound in oil prices and energy stocks helped push U.S. stocks higher toward the end of the trading session on Monday. Crude-oil futures gained 3.1% to close at $20.39 a barrel, driving the energy sector of the S&P 500 3.7% higher.
Also read
Buffett Dumps Airline Stocks J. Crew Files for Bankruptcy Virus Updates: California Will Allow Some Businesses to Reopen This Week
President Donald Trump said during his Sunday evening town hall meeting that the administration is “very confident” a coronavirus vaccine will be ready by year-end.
But he also said that the U.S. coronavirus death count could reach 100,000, a much higher number than previously cited. And on Monday the New York Times reported that some government figures are projecting fatalities will nearly double to hit 3,000 per day by early June.
The economic data points released on Monday were also downbeat. The Italian manufacturing purchasing managers index fell to a record low of 31.1 in April, and Spain’s manufacturing PMI dropped to 30.8. Any readings below 50 indicate deteriorating conditions. In the U.S., the Census Bureau reported that factory orders fell by more than expected in March.
Over the weekend, Warren Buffett’s Berkshire Hathaway (ticker: BRK.A) reported a $30 billion quarterly loss. The loss was large, in part, because accounting rules mandate Berkshire recognize stock-market fluctuations in its income statement. The S&P was down about 20% year to date through March 31. The declines hit Berkshire’s huge stock portfolio significantly. Berkshire stock was down 2.6%.
Buffett also said on Saturday that he sold his entire stake in U.S. airline stocks. Berkshire owned, roughly, between 8% and 10% of the four largest U.S. air carriers, and the news drove the stocks lower on Monday. United Airlines (UAL) shares fell 5.1%. American Airlines (AAL) stock declined 7.7%. Southwest Airlines (LUV) dropped 5.7%. Delta Air Lines slid 6.4%.
Investors sought safety in other commodities during oil’s Monday rally. Gold miner Newmont (NEM) shares rose 2.9%, as the precious metal gained 0.7%.
And some health care stocks developing Covid-19 treatments climbed as well. Vaccine developer Moderna (MRNA) stock advanced 5.4%. Roche (ROG.Switzerland) shares rose 0.6% after the FDA approved a Covid-19 antibody test.
Write to Alexandra Scaggs at alexandra.scaggs@barrons.com and Al Root at allen.root@dowjones.com
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines (AAL) stock declined 7.7%. Major U.S. indexes sold off early in the session on the heels of sharp declines in overseas stocks, as some markets reopened after a three-day break. Crew Files for Bankruptcy Virus Updates: California Will Allow Some Businesses to Reopen This Week President Donald Trump said during his Sunday evening town hall meeting that the administration is “very confident” a coronavirus vaccine will be ready by year-end.
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American Airlines (AAL) stock declined 7.7%. Stocks erased early losses in afternoon trading Monday to close higher, after a rebound in oil prices fueled gains in energy stocks. A rebound in oil prices and energy stocks helped push U.S. stocks higher toward the end of the trading session on Monday.
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American Airlines (AAL) stock declined 7.7%. Stocks erased early losses in afternoon trading Monday to close higher, after a rebound in oil prices fueled gains in energy stocks. A rebound in oil prices and energy stocks helped push U.S. stocks higher toward the end of the trading session on Monday.
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American Airlines (AAL) stock declined 7.7%. The small-cap index is down 24% so far this year, compared to the large-cap S&P 500’s 17% drop. Also read Buffett Dumps Airline Stocks J.
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2020-05-04 00:00:00 UTC
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S&P 500, Dow dip as Buffett dumps airlines, China tensions flare
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AAL
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https://www.nasdaq.com/articles/sp-500-dow-dip-as-buffett-dumps-airlines-china-tensions-flare-2020-05-04-0
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By Shreyashi Sanyal and Medha Singh
May 4 (Reuters) - The S&P 500 and Dow Jones dropped for the third session on Monday following a U.S.-China spat about the origins of the coronavirus outbreak, while major carriers slumped after billionaire Warren Buffett's Berkshire Hathaway dumped its stakes in the sector.
Delta Air Lines Inc DAL.N, American Airlines Group Inc AAL.O, Southwest Airlines Co LUV.N and United Airlines Holdings Inc UAL.O fell between 7.5% and 10%, after Buffett told reporters of the move over the weekend, saying "the world has changed" for the industry.
Berkshire's BRKa.N announcement also shaved more than 3.3% off planemaker Boeing Co's BA.N shares. The S&P 1500 airlines sub-index .SPCOMAIR plunged 8% and was on track for its worst day in more than a month.
Berkshire itself posted a record loss of nearly $50 billion, sending its shares down 3% and weighing heavily on the financials sector .SPSY.
Analysts also said Buffett's relatively bleak reading of the market had hit home with investors.
"The fact that he had sold airline stocks was perhaps a realization that he sees a slow recovery for the economy for a while at least," said James Ragan, director of Wealth Management Research at D.A. Davidson in Seattle.
Nine of the major 11 S&P 500 sectors were trading lower, also pressured by comments from U.S. Secretary of State Mike Pompeo that there was "a significant amount of evidence" the new coronavirus emerged from a Chinese laboratory. An editorial in China's Global Times said he was "bluffing".
All three major stock indexes clawed back more than 11% in April, but the rally is likely to be tested in the coming weeks with investors trying to gauge the pace of an economic recovery as states start emerging from lockdowns.
Data on Monday showed new orders for U.S.-made goods fell more than expected in March and could sink further as the health crisis upends supply chains and exports.
At 11:21 a.m. ET the Dow Jones Industrial Average .DJI was down 207.46 points, or 0.87%, at 23,516.23, and the S&P 500 .SPX was down 11.45 points, or 0.40%, at 2,819.26.
However, the Nasdaq Composite .IXIC was up 35.66 points, or 0.41%, at 8,640.61, with heavyweights Microsoft Corp MSFT.O and Amazon.com Inc AMZN.O, seen less disrupted by the pandemic, leading the advance.
"Market leadership has been concentrated in growth stocks deemed to be relatively immune to the COVID-19 virus," said Marc Chaikin, founder of Chaikin Analytics in Philadelphia.
With more than half of the S&P 500 companies having reported results so far, analysts now see first-quarter S&P 500 earnings falling 12.5% from a year earlier, and an even sharper 39% decline for the second quarter.
Tyson Foods Inc TSN.N tumbled 7.9% as the company said it would temporarily close plants as needed and expects meat sales to fall in the second half of the year as shutdowns hammer restaurants and other food outlets.
Declining issues outnumbered advancers for a 2.24-to-1 ratio on the NYSE and a 1.48-to-1 ratio on the Nasdaq.
The S&P index recorded no new 52-week highs and three new lows, while the Nasdaq recorded 12 new highs and 10 new lows.
(Reporting by Shreyashi Sanyal and Medha Singh in Bengaluru; Editing by Saumyadeb Chakrabarty and Shounak Dasgupta)
((Shreyashi.Sanyal@thomsonreuters.com; +1 646 223 8780; +91 961 144 3740; Twitter: https://twitter.com/s_shreyashi))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Delta Air Lines Inc DAL.N, American Airlines Group Inc AAL.O, Southwest Airlines Co LUV.N and United Airlines Holdings Inc UAL.O fell between 7.5% and 10%, after Buffett told reporters of the move over the weekend, saying "the world has changed" for the industry. By Shreyashi Sanyal and Medha Singh May 4 (Reuters) - The S&P 500 and Dow Jones dropped for the third session on Monday following a U.S.-China spat about the origins of the coronavirus outbreak, while major carriers slumped after billionaire Warren Buffett's Berkshire Hathaway dumped its stakes in the sector. Nine of the major 11 S&P 500 sectors were trading lower, also pressured by comments from U.S. Secretary of State Mike Pompeo that there was "a significant amount of evidence" the new coronavirus emerged from a Chinese laboratory.
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Delta Air Lines Inc DAL.N, American Airlines Group Inc AAL.O, Southwest Airlines Co LUV.N and United Airlines Holdings Inc UAL.O fell between 7.5% and 10%, after Buffett told reporters of the move over the weekend, saying "the world has changed" for the industry. By Shreyashi Sanyal and Medha Singh May 4 (Reuters) - The S&P 500 and Dow Jones dropped for the third session on Monday following a U.S.-China spat about the origins of the coronavirus outbreak, while major carriers slumped after billionaire Warren Buffett's Berkshire Hathaway dumped its stakes in the sector. The S&P index recorded no new 52-week highs and three new lows, while the Nasdaq recorded 12 new highs and 10 new lows.
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Delta Air Lines Inc DAL.N, American Airlines Group Inc AAL.O, Southwest Airlines Co LUV.N and United Airlines Holdings Inc UAL.O fell between 7.5% and 10%, after Buffett told reporters of the move over the weekend, saying "the world has changed" for the industry. By Shreyashi Sanyal and Medha Singh May 4 (Reuters) - The S&P 500 and Dow Jones dropped for the third session on Monday following a U.S.-China spat about the origins of the coronavirus outbreak, while major carriers slumped after billionaire Warren Buffett's Berkshire Hathaway dumped its stakes in the sector. (Reporting by Shreyashi Sanyal and Medha Singh in Bengaluru; Editing by Saumyadeb Chakrabarty and Shounak Dasgupta) ((Shreyashi.Sanyal@thomsonreuters.com; +1 646 223 8780; +91 961 144 3740; Twitter: https://twitter.com/s_shreyashi)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Delta Air Lines Inc DAL.N, American Airlines Group Inc AAL.O, Southwest Airlines Co LUV.N and United Airlines Holdings Inc UAL.O fell between 7.5% and 10%, after Buffett told reporters of the move over the weekend, saying "the world has changed" for the industry. By Shreyashi Sanyal and Medha Singh May 4 (Reuters) - The S&P 500 and Dow Jones dropped for the third session on Monday following a U.S.-China spat about the origins of the coronavirus outbreak, while major carriers slumped after billionaire Warren Buffett's Berkshire Hathaway dumped its stakes in the sector. Berkshire itself posted a record loss of nearly $50 billion, sending its shares down 3% and weighing heavily on the financials sector .SPSY.
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5956.0
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2020-05-04 00:00:00 UTC
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U.S. stock futures slide on renewed U.S.-China tensions
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AAL
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https://www.nasdaq.com/articles/u.s.-stock-futures-slide-on-renewed-u.s.-china-tensions-2020-05-04
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By Shreyashi Sanyal
May 4 (Reuters) - U.S. stock index futures slid on Monday on growing tensions between Washington and Beijing over the origin of the novel coronavirus.
U.S. Secretary of State Mike Pompeo said on Sunday there was "a significant amount of evidence" that the coronavirus emerged from a Chinese laboratory, but did not dispute U.S. intelligence agencies' conclusion that it was not man-made.
Pompeo's statement comes after Wall Street started May on a grim note as President Donald Trump revived a threat of new tariffs against China in response to the COVID-19 pandemic.
The S&P 500 index's .SPX 29% recovery from its March lows stands to be tested as investors weigh renewed trade tensions and the health crisis with the gradual reopening of businesses.
Shares of Delta Air Lines DAL.N, American Airlines Co AAL.O, Southwest Airlines Co LUV.N and United Airlines UAL.O slumped between 6.6% and 9.5% in premarket trading as Berkshire Hathaway Inc BRKa.N sold its entire stakes in the four-largest U.S. airlines in April.
At 6:14 a.m. ET, Dow e-minis 1YMcv1 were down 254 points, or 1.08%. S&P 500 e-minis EScv1 were down 24.25 points, or 0.86% and Nasdaq 100 e-minis NQcv1 were down 63.25 points, or 0.73%.
Investors are also awaiting factory orders data for March, which is expected to show a sharp decline.
SPDR S&P 500 ETFs SPY.P were down 1%.
The S&P 500 index closed down 2.80% at 2,830.71 on Friday.
(Reporting by Shreyashi Sanyal and Medha Singh in Bengaluru; Editing by Saumyadeb Chakrabarty)
((Shreyashi.Sanyal@thomsonreuters.com; +1 646 223 8780; +91 961 144 3740; Twitter: https://twitter.com/s_shreyashi))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shares of Delta Air Lines DAL.N, American Airlines Co AAL.O, Southwest Airlines Co LUV.N and United Airlines UAL.O slumped between 6.6% and 9.5% in premarket trading as Berkshire Hathaway Inc BRKa.N sold its entire stakes in the four-largest U.S. airlines in April. U.S. Secretary of State Mike Pompeo said on Sunday there was "a significant amount of evidence" that the coronavirus emerged from a Chinese laboratory, but did not dispute U.S. intelligence agencies' conclusion that it was not man-made. Pompeo's statement comes after Wall Street started May on a grim note as President Donald Trump revived a threat of new tariffs against China in response to the COVID-19 pandemic.
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Shares of Delta Air Lines DAL.N, American Airlines Co AAL.O, Southwest Airlines Co LUV.N and United Airlines UAL.O slumped between 6.6% and 9.5% in premarket trading as Berkshire Hathaway Inc BRKa.N sold its entire stakes in the four-largest U.S. airlines in April. The S&P 500 index's .SPX 29% recovery from its March lows stands to be tested as investors weigh renewed trade tensions and the health crisis with the gradual reopening of businesses. S&P 500 e-minis EScv1 were down 24.25 points, or 0.86% and Nasdaq 100 e-minis NQcv1 were down 63.25 points, or 0.73%.
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Shares of Delta Air Lines DAL.N, American Airlines Co AAL.O, Southwest Airlines Co LUV.N and United Airlines UAL.O slumped between 6.6% and 9.5% in premarket trading as Berkshire Hathaway Inc BRKa.N sold its entire stakes in the four-largest U.S. airlines in April. The S&P 500 index's .SPX 29% recovery from its March lows stands to be tested as investors weigh renewed trade tensions and the health crisis with the gradual reopening of businesses. S&P 500 e-minis EScv1 were down 24.25 points, or 0.86% and Nasdaq 100 e-minis NQcv1 were down 63.25 points, or 0.73%.
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Shares of Delta Air Lines DAL.N, American Airlines Co AAL.O, Southwest Airlines Co LUV.N and United Airlines UAL.O slumped between 6.6% and 9.5% in premarket trading as Berkshire Hathaway Inc BRKa.N sold its entire stakes in the four-largest U.S. airlines in April. By Shreyashi Sanyal May 4 (Reuters) - U.S. stock index futures slid on Monday on growing tensions between Washington and Beijing over the origin of the novel coronavirus. U.S. Secretary of State Mike Pompeo said on Sunday there was "a significant amount of evidence" that the coronavirus emerged from a Chinese laboratory, but did not dispute U.S. intelligence agencies' conclusion that it was not man-made.
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5957.0
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2020-05-04 00:00:00 UTC
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Warren Buffett's Berkshire Sells All Shares In Major US Airlines
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AAL
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https://www.nasdaq.com/articles/warren-buffetts-berkshire-sells-all-shares-in-major-us-airlines-2020-05-04
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(RTTNews) - Warren Buffett's Berkshire Hathaway Inc. has sold all stakes in four major U.S. airlines, noting that the airline industry has changed due to coronavirus or Covid-19 pandemic.
The company reportedly sold around 10 percent stake in each of American Airlines Group Inc., United Airlines Holdings Inc., Delta Air Lines Inc. and Southwest Airlines Co.
During the virtual annual meeting with the shareholders on Saturday, Berkshire Hathaway's Chairman and CEO called the recent purchase of the stakes in these companies an understandable mistake.
Buffett said, "I just decided that I made a mistake in valuing... The companies we bought were well-managed... I don't know whether two or three years from now that as many people will fly as many passenger miles as they did."
Buffett added that the airline business has changed in a very major way and that the future is much less clear to him how the business will turn out through absolutely no fault of the airlines themselves.
Amid the covid-19 crisis, the value of plane makers as well as major U.S. carriers has reduced significantly as majority of the countries across the world have banned air travel and plane makers ceased production.
In the U.S., the number of passengers traveling are down about 95 percent from the prior year.
On March 1, the U.S. Transportation Safety Administration reported scanning nearly 2.3 million passengers, while after the stay at home orders, the agency scanned 129,763 passengers on April 3.
Meanwhile, Berkshire continues to own all stake in Precision Castparts Corp., a supplier of aerospace parts. The stake was bought in 2016 in a deal valued at $37.2 billion.
Berkshire's vice chairman for non-insurance operations, Greg Abel, acknowledged at the meeting that even though Precision Castparts was getting hit as its business is largely connected to Boeing, its defense business remained strong. The company is said to be working to adjust the business to meet current demand.
The views and 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 company reportedly sold around 10 percent stake in each of American Airlines Group Inc., United Airlines Holdings Inc., Delta Air Lines Inc. and Southwest Airlines Co. During the virtual annual meeting with the shareholders on Saturday, Berkshire Hathaway's Chairman and CEO called the recent purchase of the stakes in these companies an understandable mistake. Amid the covid-19 crisis, the value of plane makers as well as major U.S. carriers has reduced significantly as majority of the countries across the world have banned air travel and plane makers ceased production. Berkshire's vice chairman for non-insurance operations, Greg Abel, acknowledged at the meeting that even though Precision Castparts was getting hit as its business is largely connected to Boeing, its defense business remained strong.
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(RTTNews) - Warren Buffett's Berkshire Hathaway Inc. has sold all stakes in four major U.S. airlines, noting that the airline industry has changed due to coronavirus or Covid-19 pandemic. The company reportedly sold around 10 percent stake in each of American Airlines Group Inc., United Airlines Holdings Inc., Delta Air Lines Inc. and Southwest Airlines Co. During the virtual annual meeting with the shareholders on Saturday, Berkshire Hathaway's Chairman and CEO called the recent purchase of the stakes in these companies an understandable mistake. Amid the covid-19 crisis, the value of plane makers as well as major U.S. carriers has reduced significantly as majority of the countries across the world have banned air travel and plane makers ceased production.
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(RTTNews) - Warren Buffett's Berkshire Hathaway Inc. has sold all stakes in four major U.S. airlines, noting that the airline industry has changed due to coronavirus or Covid-19 pandemic. The company reportedly sold around 10 percent stake in each of American Airlines Group Inc., United Airlines Holdings Inc., Delta Air Lines Inc. and Southwest Airlines Co. During the virtual annual meeting with the shareholders on Saturday, Berkshire Hathaway's Chairman and CEO called the recent purchase of the stakes in these companies an understandable mistake. Buffett added that the airline business has changed in a very major way and that the future is much less clear to him how the business will turn out through absolutely no fault of the airlines themselves.
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The company reportedly sold around 10 percent stake in each of American Airlines Group Inc., United Airlines Holdings Inc., Delta Air Lines Inc. and Southwest Airlines Co. During the virtual annual meeting with the shareholders on Saturday, Berkshire Hathaway's Chairman and CEO called the recent purchase of the stakes in these companies an understandable mistake. Buffett added that the airline business has changed in a very major way and that the future is much less clear to him how the business will turn out through absolutely no fault of the airlines themselves. Berkshire's vice chairman for non-insurance operations, Greg Abel, acknowledged at the meeting that even though Precision Castparts was getting hit as its business is largely connected to Boeing, its defense business remained strong.
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5958.0
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2020-05-03 00:00:00 UTC
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Warren Buffett Dumps Berkshire Hathaway's Airline Stocks, but I'm Not Selling
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AAL
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https://www.nasdaq.com/articles/warren-buffett-dumps-berkshire-hathaways-airline-stocks-but-im-not-selling-2020-05-03
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Just a few months ago, Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) was one of the largest shareholders of all four top U.S. airlines: American Airlines (NASDAQ: AAL), Delta Air Lines (NYSE: DAL), Southwest Airlines (NYSE: LUV), and United Airlines (NASDAQ: UAL). Warren Buffett's conglomerate owned stakes of roughly 10% in all four airline stocks. As of the end of 2019, Delta, Southwest, and United all ranked among Berkshire Hathaway's top 15 equity investments.
However, the COVID-19 pandemic has caused air traffic to come screeching to a halt. As a result, airlines have been reporting losses for the first quarter and expect a tidal wave of red ink starting in the second quarter. Unsurprisingly, airline stocks have plunged since mid-February.
Airline stocks' comparative performance. Data by YCharts.
This market crash gave Buffett an opportunity to increase Berkshire Hathaway's airline holdings at lower prices than what it had a paid a few years ago. But instead, Buffett chose to sell all of Berkshire's airline holdings at a loss, as he revealed on Saturday at the company's annual meeting.
Buffett's unexpected airline romance
Berkshire Hathaway first started investing in airline stocks in the third quarter of 2016. At the time, one of the conglomerate's two portfolio managers -- either Todd Combs or Ted Weschler -- bought shares of American Airlines, Delta Air Lines, and United Airlines. Soon thereafter, the Oracle of Omaha himself got involved. In the fourth quarter, he added Southwest Airlines shares to Berkshire Hathaway's portfolio. And over the next three years, he significantly increased Berkshire's holdings of all four airlines.
Buffett's decision to get involved with airline stocks a few years ago was always a bit of a head-scratcher. For years, he had been warning followers about the danger of investing in airlines. Over that span, he frequently described airlines as capital-intensive commodity businesses that were doomed to destroy investors' capital.
Presumably, Buffett changed his mind sometime around 2016. He was probably impressed with a solid streak of significant free cash flow generation at Delta, Southwest, and United. This seemed to indicate that the airline industry had matured; rather than fighting for market share at the expense of profits, airlines were focusing on generating strong returns for investors. That said, Berkshire Hathaway also opened a big stake in American Airlines, which was barely generating any free cash flow in the midst of an industry boom, due to extremely high capex.
Airlines like Delta have generated lots of free cash flow over the past decade. Image source: Delta Air Lines.
Airlines no longer fit Buffett's investment style
Investors first got a hint that Buffett was selling airline stocks in early April, when regulatory filings showed that Berkshire Hathaway had sold some of its shares in Delta and Southwest. This brought the conglomerate's stakes in those two carriers below 10%, at which point it was no longer obliged to file prompt notices of any further sales (or purchases) of those stocks.
Some investors speculated that Berkshire Hathaway may have wanted to reduce its stakes to less than 10% due to language in the CARES Act that could have prevented major holders of airline stocks from buying additional shares in the near future. To put it bluntly, they were hoping that the stock sales were just the first move in a bigger plan to try to buy either Delta or Southwest outright.
This idea wasn't totally implausible. Buying an airline like Delta Air Lines would have allowed Berkshire Hathaway to put a lot of cash to work at once. Moreover, with Berkshire's backing, Delta would have had the ability to make big investments that rivals couldn't afford, putting it in position to exit the crisis in a dominant position.
However, as I noted in late March, Buffett's investment philosophy prioritizes owning high-quality companies. Clearly, no airline can be considered a high-quality business right now. Sure enough, in his remarks at the annual meeting, Buffett said that he had made a mistake with respect to the airlines and chose to make a clean break by selling all of Berkshire Hathaway's airline stocks.
I won't be following Buffett's lead
While I wasn't surprised by Buffett's decision to exit Berkshire's airline investments, I don't plan to follow suit. At 34 years of age, I have plenty of time to be patient, and I expect higher-quality airline stocks like Southwest and Delta to make a full recovery in the years ahead.
Buffett appears to be worried that airline traffic will remain below 2019 levels for many years to come. I am significantly more optimistic on this score. To be sure, even if a vaccine becomes available sometime next year, air traffic is likely to remain well below 2019 levels in 2021, and possibly even 2022. But by 2023 or 2024 at the latest, I expect the global economy to return to health, driving a rebound for the airline industry as individuals and businesses make up for all the travel they are missing out on now.
Furthermore, I think Buffett is underestimating airlines' ability to make money during a period of lower demand. While it's impossible for airlines to avoid massive losses when demand is down more than 90% from normal levels, they have plenty of tools to adapt to a world where travel demand is 10% or 20% lower than previous levels (which could be the case in the second half of 2021 or 2022). Older planes that are more expensive to operate can be retired. Labor costs can be reduced through attrition, buyouts, and reduced overtime work. Less-profitable flights can be cut while leaving the most lucrative routes intact.
Thus, I think investors have overreacted by knocking more than $20 billion off of Delta's market cap and about $15 billion off of Southwest's market cap since February. I boosted my stakes in both airlines last month. If airline stocks crash this month due to the news about Berkshire Hathaway's sales, I will probably continue buying.
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Adam Levine-Weinberg owns shares of Delta Air Lines and Southwest Airlines and is long January 2021 $40 calls on Southwest Airlines. 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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Just a few months ago, Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) was one of the largest shareholders of all four top U.S. airlines: American Airlines (NASDAQ: AAL), Delta Air Lines (NYSE: DAL), Southwest Airlines (NYSE: LUV), and United Airlines (NASDAQ: UAL). This market crash gave Buffett an opportunity to increase Berkshire Hathaway's airline holdings at lower prices than what it had a paid a few years ago. That said, Berkshire Hathaway also opened a big stake in American Airlines, which was barely generating any free cash flow in the midst of an industry boom, due to extremely high capex.
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Just a few months ago, Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) was one of the largest shareholders of all four top U.S. airlines: American Airlines (NASDAQ: AAL), Delta Air Lines (NYSE: DAL), Southwest Airlines (NYSE: LUV), and United Airlines (NASDAQ: UAL). See the 10 stocks *Stock Advisor returns as of April 16, 2020 Adam Levine-Weinberg owns shares of Delta Air Lines and Southwest Airlines and is long January 2021 $40 calls on Southwest Airlines. 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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Just a few months ago, Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) was one of the largest shareholders of all four top U.S. airlines: American Airlines (NASDAQ: AAL), Delta Air Lines (NYSE: DAL), Southwest Airlines (NYSE: LUV), and United Airlines (NASDAQ: UAL). Airlines no longer fit Buffett's investment style Investors first got a hint that Buffett was selling airline stocks in early April, when regulatory filings showed that Berkshire Hathaway had sold some of its shares in Delta and Southwest. 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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Just a few months ago, Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) was one of the largest shareholders of all four top U.S. airlines: American Airlines (NASDAQ: AAL), Delta Air Lines (NYSE: DAL), Southwest Airlines (NYSE: LUV), and United Airlines (NASDAQ: UAL). And over the next three years, he significantly increased Berkshire's holdings of all four airlines. Buying an airline like Delta Air Lines would have allowed Berkshire Hathaway to put a lot of cash to work at once.
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ce871785-b123-42e3-b750-251f607a94f0
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5959.0
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2020-05-03 00:00:00 UTC
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There Are Bargains in Airline Stocks, but Don't Go Bottom Fishing
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AAL
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Last week, three of the top four U.S. airlines reported their first-quarter earnings results, giving investors a better look at the impact of the COVID-19 pandemic on this uniquely vulnerable sector. American Airlines (NASDAQ: AAL), Southwest Airlines (NYSE: LUV), and United Airlines (NASDAQ: UAL) all lost money and expect to incur even greater losses in the second quarter.
That said, the scale of the companies' losses differed quite dramatically. Furthermore, the carriers have vastly different financial resources. Southwest Airlines measures up as best-of-breed along both dimensions, while American Airlines is in particularly bad shape. Bargain-hunting investors looking to snap up beaten-down airline stocks in the hope of a long-term recovery should stick to higher-quality companies like Southwest, while steering clear of weaker competitors like American -- and even United.
Tolerable cash burn and a fortress balance sheet
While air travel demand fell off a cliff in March, Southwest Airlines benefited from strong performance in January and February. As a result, it posted a modest adjusted net loss of $77 million for the first quarter, on revenue of $4.2 billion: down 18% year over year.
Of course, results will get a lot worse in the second quarter. Southwest expects revenue to plunge 90% to 95% year over year in April and May. However, the company has reduced average daily cash expenditures for the quarter to a range of $30 million to $35 million. That would limit quarterly cash burn to around $3 billion even with zero net cash inflows (i.e., if new cash bookings were fully offset by refunds).
Southwest Airlines' revenue has fallen to nearly zero this month. Image source: Southwest Airlines.
Fortunately, Southwest has built up a fortress balance sheet. At the end of the first quarter, it had $5.5 billion of cash and short-term investments and just $6.3 billion of debt. Between then and April 24, the carrier received half of its CARES Act payroll support funds (over $1.6 billion) and drew down an additional $2.7 billion on its 364-day term loan. As a result, the company had over $9 billion of cash on hand by the time of its earnings report last week.
Southwest isn't stopping, either. Last week, it brought in nearly $4 billion by selling stock and convertible debt. (That amount could increase by 15%, depending on demand.) It will also receive the remaining $1.6 billion of CARES Act payroll funds by July. Finally, Southwest is putting the finishing touches on a $2 billion debt offering to refinance some of its short-term borrowings.
The net result is that even with no additional capital-raising moves and a very modest recovery in demand, Southwest should end the third quarter with at least $10 billion of cash and investments. That will give the low-cost airline a nice cash cushion no matter how fast demand recovers and enable it to start repaying debt and investing for the future in 2021.
A smoking, radiating ruin
By contrast, American Airlines posted a massive $1.1 billion adjusted net loss last quarter, on revenue of $8.5 billion, down 20% year over year. It also expects to burn an average of $70 million of cash a day during the second quarter, although that should recede to $50 million by the end of the period.
American Airlines is burning through its cash rapidly. Image source: American Airlines.
Meanwhile, American's balance sheet is in tatters. It ended Q1 with just $6.8 billion of liquidity: barely more than Southwest, despite burning cash twice as fast. It also had more than $34 billion of debt and lease liabilities.
American did say that it expects to have over $11 billion of liquidity by the end of the second quarter. However, it's relying on government grants and loans to get there: $4.8 billion of the $5.8 billion in payroll support it will receive, as well as an additional $4.75 billion secured loan available under the CARES Act.
The problem is that unless demand recovers in a meaningful way for the second half of 2020, American could burn through another $5 billion or more by year-end. That would leave it with little room for error entering 2021, as it doesn't have much collateral to offer investors for future borrowings (except potentially its loyalty program). And even if demand does recover enough to enable American to fight its way back to cash breakeven next year, the company will be weighed down by more than $40 billion of debt and lease liabilities.
The in-between case
United Airlines is clearly in better shape than American, but it is still far from matching Southwest's financial strength. United reported an adjusted net loss of $639 million for the first quarter, on a 17% drop in revenue to $8 billion. Moreover, despite being only slightly smaller than American Airlines, it expects to burn just $40 million to $45 million a day on average during the second quarter.
That said, the company ended Q1 with a mere $5.2 billion of cash and investments, plus $2 billion of credit-line availability, offset by $23.4 billion of debt and lease liabilities. Since the beginning of April, United has raised about $1 billion from a stock offering and issued another $250 million of debt. It will also receive about $4.2 billion of its $5 billion of CARES Act payroll support this quarter.
As a result, United Airlines is likely to end Q2 with close to $9 billion of liquidity, not counting the $4.5 billion in CARES Act loans it is eligible for. Considering the progress it has already made on slowing its cash burn, United faces far less risk of a 2021 cash crunch than American Airlines, even if air travel demand recovers haltingly. However, it is likely to have around $30 billion of debt by year-end, and the carrier will need to spend heavily on capex over the next decade to upgrade its aging fleet.
There's a clear choice
Southwest Airlines stock hasn't fallen quite as much as shares of American Airlines and United Airlines during 2020. That said, all three stocks have been marked down substantially because of the massive earnings and cash-flow pressure they face.
Southwest Airlines, American Airlines, and United Airlines Stock Performance, data by YCharts.
The sharper declines in American Airlines stock and United Airlines stock aren't necessarily the prelude to a big rebound. Both companies have significantly lower profit margins than Southwest under normal conditions. Last year, United's adjusted pre-tax margin was 9% and American's was just 6.3%. Meanwhile, Southwest's adjusted pre-tax margin exceeded 13%, even though the company faced a bigger margin headwind from the Boeing 737 MAX grounding than either of its larger peers.
Furthermore, United Airlines has heavy exposure to long-haul international routes, which are likely to experience a much slower demand recovery than the short-haul domestic routes that are Southwest's bread-and-butter. American also has significant international operations.
In short, American Airlines and United Airlines will likely take longer to return to profitability than Southwest. That makes their weak balance sheets even more problematic. High debt will depress United Airlines' value for the foreseeable future, and even raises a meaningful risk of bankruptcy for American. Southwest Airlines stock offers a far better risk-reward trade-off for long-term investors.
10 stocks we like better than Southwest Airlines
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Southwest Airlines wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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*Stock Advisor returns as of April 16, 2020
Adam Levine-Weinberg owns shares of Southwest Airlines and is long January 2021 $40 calls on Southwest Airlines. The Motley Fool owns shares of and recommends Southwest Airlines. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines (NASDAQ: AAL), Southwest Airlines (NYSE: LUV), and United Airlines (NASDAQ: UAL) all lost money and expect to incur even greater losses in the second quarter. Bargain-hunting investors looking to snap up beaten-down airline stocks in the hope of a long-term recovery should stick to higher-quality companies like Southwest, while steering clear of weaker competitors like American -- and even United. Tolerable cash burn and a fortress balance sheet While air travel demand fell off a cliff in March, Southwest Airlines benefited from strong performance in January and February.
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American Airlines (NASDAQ: AAL), Southwest Airlines (NYSE: LUV), and United Airlines (NASDAQ: UAL) all lost money and expect to incur even greater losses in the second quarter. Between then and April 24, the carrier received half of its CARES Act payroll support funds (over $1.6 billion) and drew down an additional $2.7 billion on its 364-day term loan. A smoking, radiating ruin By contrast, American Airlines posted a massive $1.1 billion adjusted net loss last quarter, on revenue of $8.5 billion, down 20% year over year.
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American Airlines (NASDAQ: AAL), Southwest Airlines (NYSE: LUV), and United Airlines (NASDAQ: UAL) all lost money and expect to incur even greater losses in the second quarter. There's a clear choice Southwest Airlines stock hasn't fallen quite as much as shares of American Airlines and United Airlines during 2020. Southwest Airlines, American Airlines, and United Airlines Stock Performance, data by YCharts.
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American Airlines (NASDAQ: AAL), Southwest Airlines (NYSE: LUV), and United Airlines (NASDAQ: UAL) all lost money and expect to incur even greater losses in the second quarter. United reported an adjusted net loss of $639 million for the first quarter, on a 17% drop in revenue to $8 billion. There's a clear choice Southwest Airlines stock hasn't fallen quite as much as shares of American Airlines and United Airlines during 2020.
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2020-05-02 00:00:00 UTC
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American Airlines Group (AAL) Q1 2020 Earnings Call Transcript
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https://www.nasdaq.com/articles/american-airlines-group-aal-q1-2020-earnings-call-transcript-2020-05-02
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Image source: The Motley Fool.
American Airlines Group (NASDAQ: AAL)
Q1 2020 Earnings Call
Apr 30, 2020, 8:30 a.m. ET
Contents:
Prepared Remarks
Questions and Answers
Call Participants
Prepared Remarks:
Operator
Good morning, and welcome to the American Airlines Group first-quarter 2020earnings call Today's conference call is being recorded. [Operator instructions] I would now like to turn the conference over to your moderator, managing director of investor relations, Mr. Dan Cravens.
Please go ahead, sir.
Daniel Cravens -- Managing Director of Investor Relations
Thanks, Cindy. Good morning, everyone, and welcome to the American Airlines Group first-quarter 2020earnings conference call With us in the room this morning, we have Doug Parker, our chairman and CEO; Robert Isom, our president; and Derek Kerr, our chief financial officer. Also on the call for our Q&A session are several of our senior execs, including Maya Leibman, chief information officer; Steve Johnson, our EVP of corporate affairs; Don Casey, our senior vice president of revenue management; and Vasu Raja, our senior VP of network planning.
The focus of today's call will be our response to COVID-19. Like we normally do, Doug will start the call with an overview of our quarter and the actions we're taking. Robert will then follow with commentary about our team members, customers and network. Derek will then walk us through the details on our fleet, cost outlook and liquidity.
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And then after we hear from those comments, we'll hear -- or we will open the call for analyst questions and lastly, questions from the media. To get in as many questions as possible, please limit yourself to one question and a follow-up. Before we begin, we must state that today's call does contain forward-looking statements, including statements concerning future revenues, costs, forecast of capacity, fleet plans and liquidity. These statements represent our predictions and expectations as to future events, but numerous risks and uncertainties could cause actual results to differ from those projected.
Information about some of these risks and uncertainties can be found in our earnings release that was issued this morning, along with our Form 10-Q as of March 31, 2020. In addition, we will be discussing certain non-GAAP financial measures this morning, which exclude the impact of unusual items. A reconciliation to those numbers to the GAAP financial measures is included in the earnings release, and that can be found on our website. A webcast of this will also be archived on our website and the information that we're giving you on the call is as of today's date, and we undertake no obligation to update the information subsequently.
So thanks again for joining us. At this point, I'll turn the call over to our Chairman and CEO Doug Parker.
Doug Parker -- Chairman and Chief Executive Officer
Thanks, Dan. Good morning, everybody, and thanks for joining us. Before I go to the numbers, I want to offer a few thoughts on the challenging times that we and our entire industry are facing. The spirit and efforts of the American Airlines team during this crisis have been nothing short of extraordinary.
The human and economic toll of COVID-19 has been enormous. And like others, we've lost members of our own team, and our hearts are heavy for their families, friends and coworkers. But in the face of this great loss, the American team continues to rise to the challenge and meet the needs of our customers and the communities we serve. They're putting on their uniforms every day and transporting first responders to where they're most needed and other Americans to where they feel most safe.
Our team members are frontline heroes in this battle, and they are what makes American great. So on behalf of the entire leadership team, I want to thank our team from what they continue to do every day. Turning to this quarter's results. By far, the most important recent event for our industry's long-term viability has been the passage of the CARES Act, which provides up to $50 billion of much needed liquidity to U.S.
airlines. This unprecedented assistance recognizes the value that commercial airlines provide to our country. It is designed to keep our hardworking team members employed and ready to serve the flying public whenever we start moving again. So I want to again thank the administration and Congress for their exceptional support of airlines and our employees.
And I think it's important to note that this would not have been possible without a tremendous amount of work and advocacy on behalf of airlines and our team members. So I would like to also thank Nick Calio and his team at A4A, as well as my fellow A4A CEOs: Ed Bastian, Robin Hayes, Peter Ingram, Gary Kelly, Oscar Munoz and Brad Tilden. We work in an intensely competitive business, but in response to this crisis, we pulled together to save our industry and save jobs, and I'm proud to have been a part of it. We also had great support from our team members and the unions that represent.
So I would like to also publicly thank all of our American Airlines union leaders, as well as those who represent other airline employees. We absolutely could not have gotten this done without their leadership and a joint desire from all of us to fight for our team. So as important as the CARES Act is, it certainly doesn't solve everything. CARES provides the industry the breathing room we need to manage through the worst parts of the crisis and to pay our team members that we otherwise would have needed to furlough.
But it does not fix the core problem that all of us have, which is revenue generation. Industry revenues have fallen an estimated 95% year over year in April. And while no one has a perfect crystal ball, I think we all expect that recovery will be slow and demand for air travel will be suppressed for quite some time. So in this environment, there are three critical issues that any airline must manage: First, ensuring the safety and comfort of the team members and customers; second, maintaining ample liquidity to ride through a sustained crisis; and third, planning for an uncertain future.
We at American are taking aggressive steps in each regard. I'll provide a quick overview, and then Robert and Derek will provide more detail on each. First, as it relates to safety, we dramatically increased the frequency and intensity of our aircraft cleaning. We're limiting seat sales on every flight, including not allowing half of the main cabin middle seats to be assigned.
We've reduced food and beverage service on planes to limit contact with others. As of May 1, we will begin the gradual ramp-up of providing customers with PPE kits, which include masks and sanitizing wipes, as well as requiring our flight attendants to wear mask in flight. Turning to liquidity. These efforts for all airlines come in two sets of initiatives: raising cash and conserving cash.
On the first, American's absolute liquidity position is very strong. We ended the first quarter with $6.8 billion in liquidity and American's share of the CARES Act proceeds is $10.6 billion, which results in $17.4 billion when you combine our quarter-end liquidity and CARES Act access. And importantly, outside of our recently arranged $1 billion 364-day delayed draw term loan, we do not have any meaningful non-aircraft debt amortization payments for more than two years. So we feel confident with that level of liquidity, but in this uncertain environment, we'll continue looking for additional sources.
We have more than $10 billion of unencumbered assets at our disposal. And that excludes the value of our AAdvantage program. Our plan is to first work with the Treasury Department to secure our CARES Act loan of $4.75 billion at attractive rates and then explore other initiatives as needed from there. As to conserving cash, Derek will describe our initiatives in more detail.
We've enacted a comprehensive cash conservation plan to eliminate all unnecessary operating and capital expenditures. We expect this will reduce our daily cash burn rate from an expected average of $70 million per day in the second quarter to approximately $50 million a day for the month of June. As a result of all that, we expect to end this quarter with approximately $11 billion of liquidity and a significant amount of unencumbered assets still in place. And that forecast assumes little to no increase in demand for air travel throughout the quarter.
Third, and perhaps the most difficult thing for airlines to do at this time, is to properly plan for the future. We're using this opportunity to make our airline stronger in a number of ways, and we expect to emerge a more efficient and more streamlined airline. And to do that most efficiently, we need to begin making decisions soon about how large an airline we want to run in the summer of 2021 and beyond. As you all know, things like aircraft availability, pilot training and maintenance programs do not have short planning horizons.
That's always been an issue in our business. But today, those capacity plans are severely complicated by the extreme uncertainty regarding the anticipated level of demand for air travel, not just for the next few months, but for the next few years. So we at American decided to err on the side of being smaller than we might like rather than larger. As Derek will describe, and as our first-quarter financials indicate, we made the decision to retire our entire 757, 767 and A330-300 and Embraer 190 fleet, as well as certain regional aircraft.
These decisions alone will reduce our 2021 fleet count by approximately 100 aircraft versus our prior plans, and we'll continue to assess further reductions as we move forward. So in conclusion for me, these are unprecedented times for our world, our country and our industry. The uncertainty about the future weighs on everyone and for a good reason. There's no way to overstate the gravity of the situation for the airline industry and difficult decisions lie ahead for all of us.
But in the end, the leadership that got us through the CARES Act process will be the leadership that gets us through the coming months and years, leaders who understand the importance and the nobility of what our people do and, therefore, work selflessly in support of them and side by side with them. I'm confident our industry will fight through this successfully, and I'm particularly confident that American Airlines will be among those leading the way. I am humbled and honored to be a part of the American Airlines team, and I'm incredibly proud to stand alongside them today and into the future. With that, I will turn it over to Robert.
Robert Isom -- President
Thanks, Doug. And good morning, everyone. As Doug said, the downturn in demand for air travel has been dramatic and unlike anything we've ever experienced. Across the industry, cancellations have rapidly outpaced new bookings.
While we have faced dire circumstances in the past, the American team has always persevered, and I'm confident we'll do so again. The safety of our team members and customers is paramount. We are taking a proactive approach to ensure that our team is safe by reducing contact points, providing personal protective equipment like face masks and gloves and provisioning sanitizer and wipes. These steps are critical to ensure our team feels safe and can instill that confidence in our customers as well.
Like Doug, I'm humbled by our team's spirit and proud to stand by them in these challenging times. American continues to provide critical air service to those who need to travel during the pandemic. From the outset, we have met or exceeded CDC guidelines, and we'll continue to coordinate with public health officials on all health and safety requirements. To enhance our already thorough cleaning process, we've implemented additional safety measures to ensure aircraft cleanliness and to accommodate social distancing.
Specifically, we are enhancing our cleaning procedures through expanded fogging onboard and the use of EPA-approved disinfectant in high-touch areas. Onboard, this includes everything from bins and galleys to tray tables, arm rests and seatbelt buckles. In airports, it includes the gate areas, ticket counters, as well as other areas frequented by our customers and team members. We've also purchased face masks for frontline team members and made them required for fight attendants starting May 1.
And we have started distributing sanitizing wipes or gels and face masks to customers. This will expand on all flights as supplies and operational conditions allow. And to that end, American Airlines strongly encourages customers to wear face masks when they travel. Additionally, we have temporarily relaxed our seating policies and adjusted our airport procedures.
Through May 31, American will limit the number of passengers on each aircraft. We will not assign 50% of the main cabin middle seats on every flight, and we'll use those seats only when necessary. Our team will also reassign seats to create more space between customers or to accommodate families who need to be seated together. We're also using stanchions to encourage social distancing at gates, ticket counters, and we've reduced onboard food and beverage service to limit contact.
To give customers as much piece of mind as possible when it comes to planning travel, we've extended waivers to anyone who has travel occurring through the end of September, allowing them to change plans and travel through December 2021 without incurring any change fees. Additionally, we have waived change fees for customers who purchased new tickets by May 31, 2020, for future travel. And for our corporate customers, we've introduced more flexible travel waivers and free name changes. We recognize the interruption of travel for most people, so we're making it easier for our customers to earn AAdvantage Elite status this year.
And we've extended 2020 AAdvantage status into early 2022 for all members. Additionally, we have extended all paid Admirals Club memberships by six months. We remain committed to making sure that our customers are able to fly when they want to fly, they feel safe and comfortable even in these extraordinary times. We've adjusted our network to meet drastically lower levels of demand, taking swift action to rightsize our schedule with systemized capacity cuts and flight consolidations across our network.
We've also delayed entering several new markets planned for launch later this year. New service between Austin and DFW, Christchurch and Los Angeles, Bangalore and Seattle will all be pushed into 2021. In addition, we have delayed the start of other new routes, including London Heathrow to Boston, Tel Aviv to Dallas/Fort Worth, Casablanca to Philadelphia and Krakow to Chicago. While we have reduced our schedule dramatically, we have started operating cargo-only flights in March to transport critical goods between the U.S., Europe, Asia and Latin America.
These are the first cargo-only flights American has operated since at least 1984. We are currently able to transport more than 6.5 million pounds of critical goods weekly on our cargo-only flights, and we'll look to further opportunities to expand this service and bring medical supplies and protective gear to the areas that are most in need. While we continue to provide essential air service to those who need it most right now, our team has also extended their service outside the operation. Team members have donated more than 100 tons of food in several of our hub cities, distributed thousands of supply kits to patients and healthcare workers, and sent care packages to U.S.
military members in quarantine. In addition, through our partnership with the American Red Cross, our team and customers have helped raise nearly $3 million to support our frontline healthcare workers fighting COVID-19. So in closing, we're squarely focused on getting through this period of uncertainty and we're closely managing our capacity and costs while taking care of our team members and customers. We're going to have more to share in the coming months as we ramp up our operation post-COVID-19.
And with that, I'll pass it on to Derek.
Derek Kerr -- Chief Financial Officer
Thanks, Robert. And good morning, everyone. I, too, would like to thank our entire team for doing an amazing job during these uncertain times. Their dedication and determination to get through this crisis is inspiring for all of us.
As you saw in our press release and Form 10-Q this morning, we reported a GAAP net loss of $2.2 billion or $5.26 per share. Excluding net special items, we reported a net loss of $1.1 billion or $2.65 per share. We began the quarter on track to exceed our guidance, however, the COVID-19 pandemic and unprecedented drop in demand during March radically changed our outlook. Given the unpredictable nature of this event, we suspended our guidance for all of 2020.
In light of the current environment, our sole focus is to ensure we have sufficient liquidity. To withstand this crisis, we have driven efficiencies in our operation by accelerating our fleet simplification plan, and aligning our cost structure to our significantly lower capacity levels. We will continue to match capacity with demand and optimize our cost to our level of flying and identify additional ways to improve our cash burn rate moving forward. As Doug mentioned, the significant falloff in demand has given us an opportunity to accelerate our long-term fleet strategy.
We have officially retired the Embraer 190 and Boeing 767 fleets, which were originally scheduled to exit by the end of 2020. We have also accelerated the retirement of our Boeing 757s and Airbus A330-300. Both fleets were expected to retire over the next few years. In addition, we have removed a number of smaller, regional aircraft from our fleet.
By removing these fleet types, we avoid significant future maintenance expense, remove complexity from our operation and bring forward the efficiencies associated with operating fewer aircraft types. These savings include reduced aircraft sparing, reduced parts inventories and crew scheduling efficiencies, all of which will have a significant effect on our cost structure going forward. Even with these changes, we retain the flexibility to pursue efficient growth through increased utilization or further reduce our fleet to match demand across our system and hubs. We have reduced our estimated 2020 operating and capital expenditures by more than $12 billion.
In addition to lower fuel, these savings have been achieved through a wide range of initiatives, including reductions in flying and heavy maintenance expenses. Beyond just volume-related reductions, we have taken a hard line on discretionary expenditures. Specifically, we have deferred marketing [Inaudible] event and training expenses, consolidated our footprint at airport facilities, and reduced the use of contractors. We have also suspended all nonessential hiring, paused noncontract pay increases, reduced executive and board compensation, and implemented voluntary leave and early retirement programs to lower our near-term and long-term labor costs.
While we have done a lot to address our near-term costs, we will continue to take the necessary steps to rightsize our cost structure for the lower levels of capacity we expect in the near future. Finally, on liquidity, we've moved quickly to preserve and bolster our cash position. We ended the quarter with $6.8 billion in liquidity. During the first quarter, we raised $2 billion through the issuance of a $500 million unsecured note, a $1 billion 364-day delayed draw term loan facility and approximately $477 million in aircraft financings.
We were also able to reduce the pricing of our $1.2 billion term loan and extend it out until 2027. During the quarter, we also finalized the initial terms of the financial assistance we will receive as part of the CARES Act. This will come in two forms: direct financial assistance of $4.1 billion, and a low interest rate loan of $1.7 billion. Separately, we have applied for a loan from the Treasury Department of approximately $4.75 billion.
These funds, as well as relief on various taxes, including fuel tax savings, payroll tax deferment and ticket-related taxes, will provide much-needed support for us to navigate this extraordinary environment. As Doug referenced, we ended the quarter at $6.8 billion liquidity and American's shares of the CARES Act proceeds is $10.6 billion, which results in $17.4 billion when you combine our quarterly ending liquidity and CARES Act access. Importantly, outside of our recently arranged $1 billion 364-day delayed draw term loan, we do not have any large non-aircraft debt maturities for more than 24 months. We also have additional sources of liquidity.
We recently engaged third-party appraisers to evaluate some of the company's unencumbered assets. Based on these appraisals, we believe the value of our unencumbered assets is in excess of $10 billion excluding the loyalty program. And we expect to pledge a portion of our assets for the secured loan we have applied for under the CARES Act. With respect to capital expenditures, we currently have committed financing for nearly all of our 2020 deliveries.
Beyond this, we have removed $500 million from our projected non-aircraft capital spend planned in 2020 and another $200 million in 2021. We'll continue to aggressively pursue other opportunities to conserve cash and working capital. As for cash burn, our average estimated second-quarter burn rate is expected to be approximately $70 million per day. However, as our cost initiatives gain traction, our daily cash burn is expected to decline over time.
We expect that burn rate to improve to approximately $50 million per day for the month of June. Based on our current forecast, we expect to have approximately $11 billion of liquidity at the end of the second quarter, which assumes no incremental financing beyond the government loan and little to no increase in demand for air travel. In accordance with the CARES Act, we have suspended our capital return program, including share repurchases and the payment of future dividends. In summary, we are facing a challenge that is like unlike anything we have ever seen.
In a short period of time, our team did a phenomenal job taking costs out of the business and increasing liquidity. I couldn't be more proud of what they have all accomplished. But we are by no means done, and we are prepared for a long road to recovery. While the situation remains fluid, we will do everything possible to protect our business and ensure American emerges from this crisis more efficient and competitive than before.
And with that, I'll turn it back to the operator.
Doug Parker -- Chairman and Chief Executive Officer
Thanks, Doug. Thanks, Derek. Operator, we are ready for questions.
Questions & Answers:
Operator
[Operator instructions] Your first question comes from David Vernon from Bernstein. Go ahead, Mr. Vernon.
David Vernon -- Bernstein Research -- Analyst
Sorry about that, guys. Work-from-home fun. So Derek, just to clarify, the $11 billion of liquidity at the end of the second quarter, that assumes the inflow from both portions of the CARES Act, the grant and the loan, is that right?
Derek Kerr -- Chief Financial Officer
Correct. There is a portion of -- there's 10% of the grant that does come in the second quarter. So there's about $600 million of the grant that shows up in July. But for the most part, yes, it includes about $10 billion of the government grant and loan and then $600 million when it comes in July.
David Vernon -- Bernstein Research -- Analyst
OK. And then as we think about the moving parts to get down to that $50 million burn rate, how much of the actions that would get you to $50 million would be either temporary through voluntary sort of time-off arrangements? I'm just trying to get a sense for how much of an additional sort of cut to the cash burn rate you guys are going to need to make in that September time frame as the CARE loans come off. Because $50 million a day, $10 billion left, you got to -- gets you through the first part of next year, but it seems like there's still some work to be done on the cost side there. Can you give us a sense for how much more you can get out of that $50 million a day?
Derek Kerr -- Chief Financial Officer
Yes. I'll tell you how we get there. The difference between where we are now and where we get to is there's been a significant amount of refund. So that has caused the number to be higher now than it has.
As disbursements take hold, those take a little bit of time. So those are now starting to take hold and will stay in place as we go forward. The voluntary leaves and early outs, the early outs will be there forever. The voluntary leaves, we have some three months, some six months, some nine months.
And we believe if we need to do that in the future, we can do that again. The capex reductions are permanent, and those are out throughout the whole time. And some of this is reductions in departures. So the $50 billion assumes really very minimal receipts.
So the difference -- I think from a cost structure perspective, all of this is in place and can stay in place. The difference of that burn rate, as Doug talked about earlier, the issue with the industry right now is revenues. And to get that burn rate from a cost perspective, we have some more levers to go to bring it down, but the major difference in the burn rate is going to be receipts coming back and having some revenue coming in the door versus refunds outpacing revenue and having no receipts come in the door.
Doug Parker -- Chairman and Chief Executive Officer
And David, it's Doug. I would just add what Derek said in his comments to your questions, which is that $11 billion at quarter end does assume the government loan, but it also assumes we've done no other financing. So we would expect to end the quarter still with a significant amount of unencumbered assets still in place. So there will be more to do beyond that if we need to.
David Vernon -- Bernstein Research -- Analyst
All right. Thanks, guys.
Doug Parker -- Chairman and Chief Executive Officer
Thanks, David.
Operator
Your next question comes from Mike Linenberg from Deutsche Bank.
Mike Linenberg -- Deutsche Bank -- Analyst
Hey, good morning, everyone. Just a couple of questions here. So when I look at your capex, I guess, it was $3.3 billion coming in. And Derek, I think you indicated that $500 million of non-aircraft that will be taken out.
So I think it was $1.6 billion. We're looking at about $1.1 billion of non-aircraft capex. If you could just talk about what that $1.1 billion is. And then the $1.7 billion of aircraft capex, you indicated that you've already -- it's already funded.
Presumably, those aircraft deliveries are actually cash accretive, can you talk about maybe how that's structured? Thanks.
Derek Kerr -- Chief Financial Officer
Yeah. I'll take the second one first. The answer is yes, they are cash accretive. They're 100% financed, if not more.
So all of those, we do plan on taking all of those deliveries, and they are positive to the 2020 forecast. Most of the deliveries are in the back half because there are MAXs that have been pushed out, but those are all cash accretive as we go forward. As far as the capex, we're down to about $1.1 billion. We've cut out everything that we can.
The biggest project that's in the capex is consolidating the fleets and making sure that the configuration on both of the fleets is the same. That project is going to continue, and we are going to -- with the aircraft on the ground, we'll have the ability to speed that up a little bit. So we don't plan on pulling back on that project because I think it's very important for our operation, it's very important for the team to get that one done. And that takes up at least 40% of that capex.
The rest of it is just mandatory stuff we have to do with parts. There are some other IT projects that we would still like to move forward with, and those are involved in that. But that's kind of the gist with where we are at. Anything that doesn't have to be done, any type of facility things that don't have to be done, have all been taken out of the capital plan for the next two years.
Mike Linenberg -- Deutsche Bank -- Analyst
OK, great. And then, just my second question, just on the fleet, you're 950 airplanes main line. I think you identified close to 100. That said, you have a relatively new fleet.
And so when we look at the next 850, fleet reductions become a bit more difficult since you have a lot of new airplanes. And so I'm curious, what would you target next? And just sort of a nuance there, the A330s, you're pulling out the 300s, but you have 15 200s. Are those planes next? Is it more about just the way that they're financed and the lease agreements?
Derek Kerr -- Chief Financial Officer
No. I think there's two fleet types that we've looked at. It's just a question of the timing of the return, and do they come back depending on where we are. So the flexibility, as you talked about, the 33-2s, there's 15 of those.
We have 737s. There's 42 older aircraft that we've looked at. So those are a couple of the areas that we would go. We have lease expirations, 26 in 2021 and 21 in 2022.
So those are out there. And we do have some older A320s that you could look at. But I think there's the levers to go down farther and the 33-2 is more fleet simplification for sure, if you went down that path. But as you said, they're financed out a ways.
But we're looking at -- those are the fleet types that we're looking at as we go forward. And then maybe you have some lease expirations that you let go next year.
Robert Isom -- President
And Derek, 50 ceasures, a corresponding amount of 50 ceasures as well.
Mike Linenberg -- Deutsche Bank -- Analyst
Yeah, OK. Good point. All right. Thanks, everyone.
Derek Kerr -- Chief Financial Officer
Thanks, Mike.
Operator
Your next question comes from Jamie Baker with JP Morgan.
Jamie Baker -- J.P. Morgan -- Analyst
Hey, good morning, everybody. Your negotiations are going well or you wouldn't have put the government loan in your liquidity build. But is there a plan B in case the Treasury turns you down? And as a follow-up, have we also confirmed with Treasury, and I may have just overlooked this, that 100% of the proceeds could be drawn all at once?
Derek Kerr -- Chief Financial Officer
We've been working with Treasury. I mean, the government grant process went really well. We really appreciate everything they've done for this program. We've put in for the loans a week ago, one and a half weeks ago.
So we've started to have some conversations. But our working with the Treasury team and the PJT team has been great. We've had constructive conversations as we move forward. And with the collateral we have, we believe that there's -- we can get a deal done and that everything they're going to be reasonable about it.
So we're moving down that path. We believe we're going to get it done. And so that's our No. 1 goal as we move forward, to get that complete first.
And then with the extra collateral we will have left in the end is to go down and look at other opportunities as we move forward. But I'm confident that working with the Treasury Department and the team that we can get the government loan put in place.
Doug Parker -- Chairman and Chief Executive Officer
Yeah, and Jamie, it's Doug, if you don't mind. So just to -- it gives me a nice opportunity to thank some people in Treasury as well. Look, you and I were among those -- were around in 2001, and I was running an airline that needed help to get through that from the Treasury Department, and it was extraordinarily difficult. This feels dramatically different than that time.
This Treasury Department is working night and day to do everything they can to get much needed liquidity into the U.S. economy, to make sure that the economy is able to get running again. And that includes how they are -- certainly includes how they are treating this airline support. So it was clear with the payroll support program, I think, how they handled that.
They are doing what they have to do, of course, which is make sure that the U.S. taxpayer is paid back. So it came -- when it came to the payroll support program, that they could absolutely guarantee were getting paid back with things like unemployment saving and higher income taxes. Some 70% of the grant was indeed a grant.
That went into a loan, but a very low interest loan, over 10 years. As it relates to the loan program itself, at the time, we talked about the payroll support plan, we talked, they were going to talk to all of us about the loan program itself and recognized again that they want to be sure that the taxpayers are repaid. But I think they know the best way to do that is ensure that airlines have liquidity to get through a liquidity crisis. So what they have -- again, we would still have to get through the work here in the next few weeks.
But you're right. We wouldn't have talked about how we're looking to that as our next source of most efficient capital if we didn't feel confident that it would be the next source of efficient capital. But their view is five-year loans, different rates for carriers based upon credit rating, as we were told. For us, it's LIBOR plus 350.
In today's LIBOR, that's a little over 4%, five-year money. That is the most efficient financing out there for American Airlines. And they're looking for -- it needs to be secured, but I think they're willing to be more than reasonable about collateral and also looking to just -- for appraisals that we have -- that we feel very confident that we will be able to raise that loan and still have significant unencumbered collateral after it.
Jamie Baker -- J.P. Morgan -- Analyst
Got it, Doug, that perspective is actually really, really valuable because you're right, the United precedent with the ATSB was clearly on my mind. So I appreciate all of that commentary. A quick follow-up to your earlier comment, Doug, about resizing the franchise, and this might have been sort of where Mike was going as well. My phone was cutting in and out.
But not looking for a 2021 capacity guide, unless you want to give us one, but my question is how much could you shrink relative to the 2019 baseline if you only put down owned aircraft and allow leases to expire? I guess, put differently, how much could you shrink before there begins to be a cost in terms of parking aircraft? Not thinking about facilities, not thinking about the toll on labor, just a specific aircraft question.
Doug Parker -- Chairman and Chief Executive Officer
Additional airplanes above the 100 that we've already announced?
Jamie Baker -- J.P. Morgan -- Analyst
Well, you still have owned and fully depreciated aircraft. You have rights expirations coming up that I don't have particularly good clarity. And if you allow those to expire and put down owned aircraft, there's no real expense to that. My question is how much, on a percentage basis, could you shrink ASMs before contemplating putting down an airplane for which there is still an ownership cost or a lease expense? Is that 10% relative to 2019? Is it 20%? And if you don't have the figures, that's fine.
I mean, we've done some back of the envelope. I was just curious to hear your take.
Vasu Raja -- Senior Vice President of Network Planning
Hey, Jamie, this is Vasu. The figure is a little bit different on an airplane basis versus an ASM base, because our gauge will change. So on an ASM basis, we estimate that number between 15% to 20%, depending on how you draw that time period. And my number includes all jets, regional narrowbodies, widebodies.
But on an ASM base, that number is probably more in the 10% to 15% because, of course, the things we would look to do were take out smaller jets, like 50 seaters, and keep more economical things like bigger 737s, 321s, things like that, right?
Jamie Baker -- J.P. Morgan -- Analyst
Perfect. That's exactly what I was looking for. I'll pass the mic to the next analyst. Thank you so much, gentlemen.
Good luck.
Doug Parker -- Chairman and Chief Executive Officer
Thank you, Jamie.
Operator
Your next question comes from Joseph DeNardi from Stifel.
Joseph DeNardi -- Stifel Financial Corp. -- Analyst
Yeah, thanks. Good morning. Derek, can you just talk about the nature of the unencumbered assets that you have? Kind of realistically, what sort of capital you could raise against that? And then what is the value of the loyalty program, since that's kind of a pretty big moat between -- that's still out there for you? Thank you.
Derek Kerr -- Chief Financial Officer
Yeah. I think going to No. 2, I mean, you're the one that has done the best work on the loyalty programs by far. And your number is pretty good from where we have on an appraisal of the program.
So I think the value of that program is high. And I think you have pointed that out rightly so. And you are in the range of the appraisals that we've gotten back for that. So that has a very high value to us.
Of the $10 billion, about $2 billion is aircraft, spare parts, engines, those kind of things. About $5 billion is slots. So it gets us to $7 million. We've got A/R about $1.8 billion and real estate about $1.2 billion.
So there are different things we can do with different products. So of that $10 billion, 40% maybe loan-to-value on certain things, 40% to 50%, just in the fact that I think some can do more than others and gain more cash from an LTV basis than other collateral, but maybe the, I would say, $4 million to $5 million. We also have in our slots, gates and routes, 364 deal that we have to refinance at some point in time. There is $4.4 billion of collateral in there, which will be used at some point in time to refinance and probably do a bigger transaction as you combine that with other collateral that we have.
Joseph DeNardi -- Stifel Financial Corp. -- Analyst
OK, yeah, that's helpful. And then maybe for Vasu, what is getting as much smaller as you think you might be on the other side of this mean for the hub structure of the network? Thank you.
Vasu Raja -- Senior Vice President of Network Planning
Yeah. Thanks for the question, which I'm going to interpret to mean, does this mean that we shrink hubs or eliminate one? So let me be very direct about this. We have no plans to close any hubs. In fact, far from it.
As we see this -- look, the core of our customer proposition is providing connectivity. And indeed, that is something that we do not just versus all other airlines, but even all other network airlines. We are uniquely good providing connections from customers in small cities across the North and South America, but connect them to the global marketplace. So as dark and daunting as this crisis is, this is the moment for real clarity.
And so this is not about dismantling our customer proposition, but sharpening it and refocusing it. And so with that in mind, the way we are thinking about trying to get a lot of the same value that historically people try to wring through hub closure is, first and foremost, as Derek and Doug mentioned, through fleet simplification, right? Which just -- if we just take out fleet, of course, you take out direct expense. So when we simplify away fleets, then you take out more intractable expenses like indirect costs of parts and tooling, fixed overheads, things like that. But importantly, that makes the airline a lot more lean and a lot more nimble, a lot more capable of being able to move fleets around markets, respond to a recovery when and if it comes.
I'm going to do many of the things that have been difficult for us to do, frankly, over the last four or five years. And then, two, the other thing that we look to do with that kind of agility is really put the capacity even more aggressively to where the demand is. And without going too far into it, I think I can very confidently say, you won't see us de-peaking DFW visits this whole process. In fact, far from it.
And then the third thing, which is really different from past crises for us is really the power of our partnerships here. Because now we have things such as our growing partnership with Alaska on the West Coast, that and a lot of markets that are challenged. Our growth is inhibited because of constraints on slots or gates or routes. What we're now able to do is offer the customer a much larger network that can compete with their rivaled and oftentimes unwinnable market.
So that means that we should be able to see that in higher-quality revenues for American Airlines, but at a lower amount of investment. So we do not plan for mass-scale type of closures. In fact, our hubs are a massive asset to us as we think about a really very focused customer proposition coming out of this.
Joseph DeNardi -- Stifel Financial Corp. -- Analyst
Thank you.
Operator
Your next question comes from Duane Pfennigwerth from Evercore.
Duane Pfennigwerth -- Evercore ISI -- Analyst
Hey, thanks, Doug, good morning. Regarding your commentary about a multiyear recovery and what this looks like in the long term, just curious if you could share what the financial targets are that will shape your plan. So as we think about the crisis here and now burning over $6 billion in cash just this quarter, your exit rate implies about a $4.5 billion burn rate into 3Q, net debt on its way to perhaps $40 billion this year. What are the financial targets that will shape your 2021 plans? Burn less cash?
Doug Parker -- Chairman and Chief Executive Officer
Yeah. Thanks, Duane. At this point, we're working again, as I think all of us are, getting through the current liquidity crisis rather than building 2021 plans. But for certain, as we come out prior to this, American had gotten to the point where we were happily through a large capex program, and we're moving aggressively toward using our free cash flow to delever the balance sheet.
That will certainly be the case as we come out of this now. As we do move to generating free cash flow in the future, the proceeds of that free cash flow will be going to pay down debt and to pay down as aggressively as we can. So that's what you can expect to see when we get to that point. But nothing more concrete than that in terms of estimates or metrics for 2021 at this point.
Duane Pfennigwerth -- Evercore ISI -- Analyst
And then just on the $11 billion liquidity target, what are you assuming for the working capital headwind related to the air traffic liability? We had a lot of questions around this for a number of airlines, not just American. But can you walk us through the mechanics of why the ATO did not decline in the March quarter and the outlook for that into the June quarter, considering things like cancellations, etc.? Thanks for taking the questions.
Derek Kerr -- Chief Financial Officer
Yeah. I mean, the ATO didn't decline in the quarter because it was positive by about -- our ATO for the quarter was positive 665. We had positive 785 in January, positive 487 in February and negative 618 in March. That is the time when ATO does build for us.
No, this didn't even really hit until middle of March. So those two happened. We did have refunds during the quarter of about $900 million. So we did have ATO grow.
We had refunds of $900 million, really driven by sales in the first two months of the time period. We do believe that ATO will decline in the second quarter. Our projections, I think April, we had refunds -- we haven't finalized it yet, but we think it's in the $600 million range, if not more. And we do project about $400 in May and about $200 million more in June.
So the quarter is going to be hit by some $1.2 billion to $1.3 billion worth of refunds, and that is built into the daily cash burn numbers that we gave you. That's why we talked about receipts being really low in a 50 -- or the $70 million a day daily burn. So that is built in. We do have an ATO that we think is going to be negative.
But in the first quarter, it was positive really because as we entered March, things looked really good from where we were. And I think for all people, that was pretty much the same picture. We just had the burn coming in, in March.
Duane Pfennigwerth -- Evercore ISI -- Analyst
Very clear. Thanks, Derek.
Operator
Your next question comes from Hunter Keay from Wolfe Research.
Hunter Keay -- Wolfe Research -- Analyst
Good morning. Thanks for getting me on. This is kind of a follow-on to the question. You don't want to talk about '21.
But I mean, how do you plan on digging out of this debt pile here, Doug? I mean, based on what Vasu said, it doesn't seem like you guys are going to be really gutting costs. So I mean, pragmatically speaking, like how do you dig out of this debt pile? How do you generate that free cash flow once you get through this crisis?
Doug Parker -- Chairman and Chief Executive Officer
Through earnings. Again, so we were nicely forecasting positive free cash flow prior to this. We need to get back to a point where we're generating free cash flow in the future. And as we do that, like you say, we'll use that to pay down the debt over time.
As Derek noted, while we do indeed come out of this with more debt than we would have liked, as it relates to the actual cash flow situation regarding the debt, we don't have any major amortizations for the next couple of years. And I can say, as we come out of this, like all carriers and get to a point -- we need to get to a point again where we're generating positive cash flow, which we certainly will at some point. And when we do that, we use that to pay down the debt as we go forward.
Derek Kerr -- Chief Financial Officer
And Hunter, we are really good. I mean, the work that's been done to get the cost structure where it is right now. It's only beginning. So Vasu and his team are working through what the schedule is going to look like in 2021.
The whole purpose of retiring fleets was to simplify things and to drive the cost structure where it needs to be, and we're still looking at other opportunities to do that. So we will go through a comprehensive look at the expenses of the airline over the next few months here to rightsize the expenses to where Vasu is going from a network perspective.
Hunter Keay -- Wolfe Research -- Analyst
OK. And then of the 39,000 volunteers for early retirement and the like, how many of those 39,000 are permanently retired?
Derek Kerr -- Chief Financial Officer
There's 4,500 early outs.
Hunter Keay -- Wolfe Research -- Analyst
Thank you, Derek.
Operator
Your next question comes from Myles Walton from UBS.
Myles Walton -- UBS -- Analyst
Thanks. Good morning. Doug, I just had a question for you on customer behavior and specifically as you alter some of the procedures for safety onboard the plane. And something like blocking the middle seat.
How long do you think something like that lasts if customers get used to it? I mean, is it potentially that you're putting it in there and it has to stay through the vaccine development next year? And just how is that going to feed into your building of 4Q type of projections and scheduling?
Doug Parker -- Chairman and Chief Executive Officer
Yeah, a really good question. All this is rapidly evolving. And today, it's not much of an issue, obviously. We have over 80% of our flights are going out with lower than 25% load factors so that constraint comes into play on a very, very rare basis.
So we think it's the right thing at this point in time. Again, I can't really answer your question other than to tell you it will continue to evolve over time. Today, what we're seeing is much more of a push toward facial coverings to give customers a level of comfort. We certainly are strongly encouraging that.
And indeed, as we said, we'll soon -- tomorrow begin providing customers with masks to strongly encourage that they use them. So we'll see. Right now, we think that's an important part of the message to our customers to know that we're not going to have every seat on the airplane filled. There will be some seats available for those that require -- and so we think we, as other airlines right now, think that's an important part of the messaging.
But again, we'll see where that evolves over time. I don't know if I can answer any better than that.
Myles Walton -- UBS -- Analyst
No, that's fine. It's just a slippery slope when you start to put something in place. You don't know exactly when to peel it back. I just wondered how you were thinking about it.
And then there's the clarification on the CARES loan. How much of the encumbered assets are you proposing to pledge against that, so we can know kind of quarter end, what your unencumbered assets are? Thanks.
Derek Kerr -- Chief Financial Officer
We don't know yet. I mean, we're still working with the Treasury to finalize that. So it hasn't been determined, and we'll just continue to work with them on what the right collateral value is for the $4.75 billion loan.
Doug Parker -- Chairman and Chief Executive Officer
Yes, but back to what earlier what we said. Of the $10 billion plus the AAdvantage program that we have available today, we certainly expect that we will have ample collateral available for the Treasury Department to feel good about their $4.75 billion loan being secured and still have significant unencumbered assets after that process.
Myles Walton -- UBS -- Analyst
All right. Thank you.
Operator
Your next question is from Andrew Didora from Bank of America.
Andrew Didora -- Bank of America Merrill Lynch -- Analyst
Hi. Good morning, everyone. Thanks for getting me in here at the end. Just want to kind of actually go back to the CARES Act.
I guess, my understanding of the government loan program is that government's kind of here to be a lender of last resort, and you need to exhaust a lot of your other avenues of financing before accessing the program. Based on your explanation, I think it's fair to assume, would you agree that I'm maybe off on this interpretation? And then as a follow-up to Myles' question. In your discussions with the Treasury, have they indicated the type of collateral that they would be willing to take? Because just trying to get a sense of what you could have left if you need to go to the public markets. Thanks.
Doug Parker -- Chairman and Chief Executive Officer
Yeah. Sure, Andrew. Let me start and then Derek can fill in with details. I mean, as to the lender of last resort point, again, I don't have the legislation in front of me.
But it says something to the effect of carrier has to show that they don't have reasonable access to other public markets or something like that. And again, in discussions with them, and I can't stress enough again how exceptionally reasonable and helpful they're being to all of us. We propose things. We mentioned it in things such as, for example, in February or sometime earlier this year, Derek, we were able to do a C-tranche on a EETC at --
Derek Kerr -- Chief Financial Officer
Well, we did unsecured at 3.7.
Doug Parker -- Chairman and Chief Executive Officer
We did an unsecured deal at 3.7, so we could do a C-tranche on a EETC. It's something lower than that. Today, if we try and do a C-tranche on a EETC, it's a double-digit number. They're certainly not saying go do that.
They view that as financing not being -- reasonable financing not being available in reasonable terms. So again, it's for them to ascertain, but certainly, their view seems to be not that you need to go raise -- use all the collateral you have and come to them only when there's nothing else you can do irrespective of the cost. And so again, which I think is, one, the right thing to do for what they're trying to accomplish, which is ensure the industry has liquidity it needs at reasonable rates and what we've been told we're going to do. So again, I'm going to use this opportunity to thank them, not just Secretary Mnuchin, we thanked a lot, but Undersecretary Brent McIntosh, Deputy Secretary Justin Muzinich.
The entire team has just been really very helpful about this. And then as to the collateral, again, all we can say is that's what we need to work through with them. We have $10 billion of unencumbered assets plus the AAdvantage program, which has appraised of, as Derek indicated, awfully high. So given all that, we feel good about what we have said, which is that we will go raise the government loan and still have significant unencumbered assets, not outstanding.
And then let me use this opportunity, one more, give credit where credit is due, to Derek and the Treasury team. These numbers we're giving you, $11 billion at year-end -- sorry, at quarter end with the government loan has us thus far, the most expensive debt we will have raised in that analysis is this government loan. So not to say that we won't need to do other things in the future, but we've been going about this going to go to the most efficient source of financing throughout. And I think we've done so really well.
Feel good about that, and we'll continue to do that. And right now, that's the next most efficient tranche to go after. So that's where we expect to go to the extent. Beyond that, if we need to do other things, we, obviously, will do so.
I think Gary Kelly on Southwest call said this well, there's an asymmetrical risk right now for cash. Not having enough is really expensive, having too much may be somewhat expensive, but you just use that to pay down the debt sooner. That's certainly the way we view it, and we're going about it in a way of raising that which is most efficient first and getting to those that are less efficient later.
Andrew Didora -- Bank of America Merrill Lynch -- Analyst
Great. Thank you for that, Doug. And lastly, Derek, just a quick modeling question here. In the $50 million daily cash burn rate in June and beyond, what are you assuming? What is EETC amortization assumptions in that number? Thanks.
Derek Kerr -- Chief Financial Officer
So the EETC amortizations for 2020 is about $2.2 billion for the full year.
Andrew Didora -- Bank of America Merrill Lynch -- Analyst
Great. Thank you.
Operator
At this time, we will take questions from the media. [Operator instructions] Your first question comes from Alison Sider from Wall Street Journal.
Alison Sider -- Wall Street Journal -- Analyst
Hi. Thanks so much. Yeah, I was wondering if you could tell us anything about sort of any supply chain issues you're seeing for masks. Like where are you getting all these masks for crew and for passengers? And is it getting easier to find them?
Robert Isom -- President
Ali, it's Robert. I'll give you what we know. Look, there's a lot of planning that goes into provisioning masks and sanitizers. And when we contemplated making changes to our cleaning programs and also any type of amenities for our customers, things have changed rapidly in just two or three weeks.
So as we take a look forward, with sanitizer, we see ample supplies. With masks, it is a logistical issue of getting inventories to the right place. But we have sufficient quantities for our team, and as our commitment to offer masks and sanitizer to customers in flight, you'll see us rolling that out in our supply chain. It will take a number of weeks, but it's not an issue of months at this point.
And so I can't point you to the exact sources of supply. But I will say that things have certainly eased -- constraints have certainly eased over the last few weeks to the point that we are able to make commitments like we have to both our team and our customers.
Alison Sider -- Wall Street Journal -- Analyst
Got it. Thanks. And I mean, we've heard -- I know you can't say exactly where, but we've heard of other airlines having to go to Asia or to China, in particular, to get masks. Is that kind of where some of the sourcing is?
Robert Isom -- President
We're sourcing wherever we can get quality product that meets our needs throughout the country. But I don't have the specifics on what percentage comes from where.
Alison Sider -- Wall Street Journal -- Analyst
OK. Thanks.
Operator
Your next question comes from Kyle Arnold from Dallas Morning News.
Kyle Arnold -- Dallas Morning News -- Analyst
Hey, thanks for taking my call. You mentioned the 39,000 employees that took the early out, leave and reduced hours. Can you talk a little bit about what your permanent workforce situation might look like after that CARES Act restrictions sunset? And how are you going to be looking at the immediate from the size of the airline during the next few months?
Doug Parker -- Chairman and Chief Executive Officer
Yeah, Kyle, it's Doug. Look, obviously, hard to tell given the uncertainty around demand, where we will be and how fast the consumer returns and how much we want to fly. But certainly, I mean, given what we announced today with the retirement of all these aircraft, we will emerge from this in the fall with a smaller airline than we had anticipated prior to the virus, of course, and go into 2021 as a smaller airline. So we will indeed -- well, certainly, irrespective of where demand is, go into the fall with more team members than we have worked for, which is a challenge for certain.
We hope to get through that same way we've gotten to this point, the fact that we had 39,000 of our team members volunteer for leaves and early retirement, I think, is an indication that we hopefully can be able to manage through that without having to do furloughs. That's certainly will be our goal, to go through and make sure that we have the airline rightsized, properly sized, a good bit smaller than it is today, but do this in a way that takes care of our team, which has been front of mind for this entire process. So we'll look to do that. But yes, those decisions are things we're going to have to make when we get to that point.
And that's a goal at this point, one that I hope we can meet, but not a certainty. So again, this is not unique to American. I think we're all working through this at this point. As for right now, we're working through the summer and through the terms and conditions of the CARES Act itself.
And as we get into the fall, we will certainly be working productively with our team to make sure we're right sized.
Operator
Your next question comes from Mary Schlangenstein from Bloomberg News.
Mary Schlangenstein -- Bloomberg News -- Correspondent
Good morning. I wanted to ask, when you all have been mentioning the AAdvantage program as not being included in your unencumbered assets, can you talk about your willingness or your unwillingness to have to use that as collateral?
Doug Parker -- Chairman and Chief Executive Officer
Derek, can you answer for Mary?
Derek Kerr -- Chief Financial Officer
Well, I think, well, there's willingness to use all of our collateral that is necessary for us to increase the liquidity to where we need it to be.
Doug Parker -- Chairman and Chief Executive Officer
Yeah. We're not putting constraints on the program, if that's what you're asking. I mean, like that, if indeed that is an asset that we can use to raise much need liquidity in this time, we're absolutely willing to consider it.
Mary Schlangenstein -- Bloomberg News -- Correspondent
OK. And if I can also ask on the worker leaves, do you have any information in terms of -- since they are three, six, nine, what percentage of those folks would be coming back right around September 30 when the restrictions on the CARES Act loan go away?
Doug Parker -- Chairman and Chief Executive Officer
I don't know if we have that information, Mary. I don't think we have that.
Mary Schlangenstein -- Bloomberg News -- Correspondent
OK. Just wondering if that's going to complicate your decision going forward on whether you need to have furloughs or not, if you've got a bunch of folks coming back off of leave at that time. So if that becomes available, and I could get that, I would appreciate it.
Doug Parker -- Chairman and Chief Executive Officer
Yeah. Well, anyway, Ali, do you want to answer?
Ali Taylor -- Senior Vice President of Global Sales and Distribution
Yes. Mary, I can call you online about that. I would tell you that some of these leaves, the three, six, nine months, we'll be going back out and looking at extending those wherever we can, if needed.
Mary Schlangenstein -- Bloomberg News -- Correspondent
OK, thank you.
Operator
Your next question is from Leslie Josephs from CNBC.
Leslie Josephs -- CNBC -- Airline Reporter
Hi. Good morning. Thanks for taking my question. On the open labor agreements, how does coronavirus and then this need to be a smaller airline affect those? And as you think about furloughs, how do any of the existing labor contracts affect those discussions?
Doug Parker -- Chairman and Chief Executive Officer
The existing labor negotiations, the flight attendants and pilots, we're in negotiations on. Those negotiations, obviously, it has an impact on us as we all work on the pace of those negotiations. We'll still continue to talk and work through those to the extent we can. But right now, all of our team is working to make this -- is working to take care of our team members through this issue.
So certainly, nothing to report about those moving forward beyond where they were at this point. And again, as it relates to the labor contracts, as I said, our goal is to get through this without furloughs to our team. I'm sure our unions would support that goal. And we'll work together to figure out hopefully ways that we can do that so that we have the workforce rightsized, but have those that want to avail themselves of leaves or early outs, doing so; and those that need to be working, doing that as well.
So we'll work with them on that, I will note again. Yes, go ahead.
Leslie Josephs -- CNBC -- Airline Reporter
On the leaves, do you have any sense of why so many people are taking those leaves? Is it child care? I can't go to another airline now, but --
Elise Eberwein -- Executive Vice President, People and Communications
Yeah. Leslie, it's Elise. It's a combination of things from child care needs to wanting to take the summer away from flying. So it's a variety of needs.
It all depends on the individual.
Leslie Josephs -- CNBC -- Airline Reporter
Thanks.
Operator
Your next question comes from Edward Russell, TPG.
Edward Russell -- The Points Guy -- Senior Aviation Business Reporter
Thanks for taking my question. Vasu, I was wondering if you could go a bit more into your statement on all the hubs coming back. Should we expect some hubs to come back faster or more robustly than others? I know you've been talking in the last few years about Charlotte, Dallas and Washington being the strongest hubs.
Vasu Raja -- Senior Vice President of Network Planning
Hey, Ed, thanks for the question. It remains to be seen, quite frankly. As Derek mentioned, we are just now starting kind of a clean sheet exercise for what 2021 might look like. And so I couldn't tell you with a lot of clarity.
But for right now, as you look at our schedule, clearly, we have our biggest connecting complexes that are out there, primarily so that we can serve the vast majority of communities under the CARES Act with a minimum of resource expenditure. And so that's all you kind of see in our existing schedule today, and everything beyond it remains to be seen yet.
Edward Russell -- The Points Guy -- Senior Aviation Business Reporter
Great. Thank you. And then one point of clarification. Robert, you mentioned some older 737 that could be retired.
How many were they? Were they 42? I missed that number.
Robert Isom -- President
Yes, 42.
Edward Russell -- The Points Guy -- Senior Aviation Business Reporter
Great. Thank you.
Doug Parker -- Chairman and Chief Executive Officer
Operator, I think we're done taking questions.
Operator
That is correct, sir. There are no further questions at this time.
Doug Parker -- Chairman and Chief Executive Officer
Excellent. All right. Well, thanks, everybody, for your time and attention. I will close where I closed my comments with is -- obviously, it's a difficult time for our industry and our country.
But we couldn't be more proud of how our team and our industry is managing through this. We will get through this, I'm certain of that. I know our industry will get through this. We'll fight through this successfully.
And I'm particularly confident that American Airlines will be among those leading the way. We will keep you apprised as we move forward. If you have any further questions, please contact the investor relations or corporate communications. Thanks a lot.
Operator
[Operator signoff]
Duration: 71 minutes
Call participants:
Daniel Cravens -- Managing Director of Investor Relations
Doug Parker -- Chairman and Chief Executive Officer
Robert Isom -- President
Derek Kerr -- Chief Financial Officer
David Vernon -- Bernstein Research -- Analyst
Mike Linenberg -- Deutsche Bank -- Analyst
Jamie Baker -- J.P. Morgan -- Analyst
Vasu Raja -- Senior Vice President of Network Planning
Joseph DeNardi -- Stifel Financial Corp. -- Analyst
Duane Pfennigwerth -- Evercore ISI -- Analyst
Hunter Keay -- Wolfe Research -- Analyst
Myles Walton -- UBS -- Analyst
Andrew Didora -- Bank of America Merrill Lynch -- Analyst
Alison Sider -- Wall Street Journal -- Analyst
Kyle Arnold -- Dallas Morning News -- Analyst
Mary Schlangenstein -- Bloomberg News -- Correspondent
Ali Taylor -- Senior Vice President of Global Sales and Distribution
Leslie Josephs -- CNBC -- Airline Reporter
Elise Eberwein -- Executive Vice President, People and Communications
Edward Russell -- The Points Guy -- Senior Aviation Business Reporter
More AAL analysis
All earnings call transcripts
This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability.
Motley Fool Transcribing 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) Q1 2020 Earnings Call Apr 30, 2020, 8:30 a.m. Operator [Operator signoff] Duration: 71 minutes Call participants: Daniel Cravens -- Managing Director of Investor Relations Doug Parker -- Chairman and Chief Executive Officer Robert Isom -- President Derek Kerr -- Chief Financial Officer David Vernon -- Bernstein Research -- Analyst Mike Linenberg -- Deutsche Bank -- Analyst Jamie Baker -- J.P. Morgan -- Analyst Vasu Raja -- Senior Vice President of Network Planning Joseph DeNardi -- Stifel Financial Corp. -- Analyst Duane Pfennigwerth -- Evercore ISI -- Analyst Hunter Keay -- Wolfe Research -- Analyst Myles Walton -- UBS -- Analyst Andrew Didora -- Bank of America Merrill Lynch -- Analyst Alison Sider -- Wall Street Journal -- Analyst Kyle Arnold -- Dallas Morning News -- Analyst Mary Schlangenstein -- Bloomberg News -- Correspondent Ali Taylor -- Senior Vice President of Global Sales and Distribution Leslie Josephs -- CNBC -- Airline Reporter Elise Eberwein -- Executive Vice President, People and Communications Edward Russell -- The Points Guy -- Senior Aviation Business Reporter More AAL analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. So in this environment, there are three critical issues that any airline must manage: First, ensuring the safety and comfort of the team members and customers; second, maintaining ample liquidity to ride through a sustained crisis; and third, planning for an uncertain future.
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Operator [Operator signoff] Duration: 71 minutes Call participants: Daniel Cravens -- Managing Director of Investor Relations Doug Parker -- Chairman and Chief Executive Officer Robert Isom -- President Derek Kerr -- Chief Financial Officer David Vernon -- Bernstein Research -- Analyst Mike Linenberg -- Deutsche Bank -- Analyst Jamie Baker -- J.P. Morgan -- Analyst Vasu Raja -- Senior Vice President of Network Planning Joseph DeNardi -- Stifel Financial Corp. -- Analyst Duane Pfennigwerth -- Evercore ISI -- Analyst Hunter Keay -- Wolfe Research -- Analyst Myles Walton -- UBS -- Analyst Andrew Didora -- Bank of America Merrill Lynch -- Analyst Alison Sider -- Wall Street Journal -- Analyst Kyle Arnold -- Dallas Morning News -- Analyst Mary Schlangenstein -- Bloomberg News -- Correspondent Ali Taylor -- Senior Vice President of Global Sales and Distribution Leslie Josephs -- CNBC -- Airline Reporter Elise Eberwein -- Executive Vice President, People and Communications Edward Russell -- The Points Guy -- Senior Aviation Business Reporter More AAL analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. American Airlines Group (NASDAQ: AAL) Q1 2020 Earnings Call Apr 30, 2020, 8:30 a.m. During the first quarter, we raised $2 billion through the issuance of a $500 million unsecured note, a $1 billion 364-day delayed draw term loan facility and approximately $477 million in aircraft financings.
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Operator [Operator signoff] Duration: 71 minutes Call participants: Daniel Cravens -- Managing Director of Investor Relations Doug Parker -- Chairman and Chief Executive Officer Robert Isom -- President Derek Kerr -- Chief Financial Officer David Vernon -- Bernstein Research -- Analyst Mike Linenberg -- Deutsche Bank -- Analyst Jamie Baker -- J.P. Morgan -- Analyst Vasu Raja -- Senior Vice President of Network Planning Joseph DeNardi -- Stifel Financial Corp. -- Analyst Duane Pfennigwerth -- Evercore ISI -- Analyst Hunter Keay -- Wolfe Research -- Analyst Myles Walton -- UBS -- Analyst Andrew Didora -- Bank of America Merrill Lynch -- Analyst Alison Sider -- Wall Street Journal -- Analyst Kyle Arnold -- Dallas Morning News -- Analyst Mary Schlangenstein -- Bloomberg News -- Correspondent Ali Taylor -- Senior Vice President of Global Sales and Distribution Leslie Josephs -- CNBC -- Airline Reporter Elise Eberwein -- Executive Vice President, People and Communications Edward Russell -- The Points Guy -- Senior Aviation Business Reporter More AAL analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. American Airlines Group (NASDAQ: AAL) Q1 2020 Earnings Call Apr 30, 2020, 8:30 a.m. Good morning, everyone, and welcome to the American Airlines Group first-quarter 2020earnings conference call With us in the room this morning, we have Doug Parker, our chairman and CEO; Robert Isom, our president; and Derek Kerr, our chief financial officer.
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Operator [Operator signoff] Duration: 71 minutes Call participants: Daniel Cravens -- Managing Director of Investor Relations Doug Parker -- Chairman and Chief Executive Officer Robert Isom -- President Derek Kerr -- Chief Financial Officer David Vernon -- Bernstein Research -- Analyst Mike Linenberg -- Deutsche Bank -- Analyst Jamie Baker -- J.P. Morgan -- Analyst Vasu Raja -- Senior Vice President of Network Planning Joseph DeNardi -- Stifel Financial Corp. -- Analyst Duane Pfennigwerth -- Evercore ISI -- Analyst Hunter Keay -- Wolfe Research -- Analyst Myles Walton -- UBS -- Analyst Andrew Didora -- Bank of America Merrill Lynch -- Analyst Alison Sider -- Wall Street Journal -- Analyst Kyle Arnold -- Dallas Morning News -- Analyst Mary Schlangenstein -- Bloomberg News -- Correspondent Ali Taylor -- Senior Vice President of Global Sales and Distribution Leslie Josephs -- CNBC -- Airline Reporter Elise Eberwein -- Executive Vice President, People and Communications Edward Russell -- The Points Guy -- Senior Aviation Business Reporter More AAL analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. American Airlines Group (NASDAQ: AAL) Q1 2020 Earnings Call Apr 30, 2020, 8:30 a.m. We had a lot of questions around this for a number of airlines, not just American.
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5961.0
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2020-05-02 00:00:00 UTC
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2 Investing Tricks to Double Your Money
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AAL
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https://www.nasdaq.com/articles/2-investing-tricks-to-double-your-money-2020-05-02
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nan
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Welcome back, Motley Fools! It's May, and you know what that means: Once again, it's time to reveal for you a couple of (new, but time-tested) investing tricks to double your money.
Last time around, we discussed using the rule of 72 to plump up your portfolio, and also took a quick tour 'round the incredible world of dividend investing. Today, we're going to move right ahead to consider the merits of buying into a market crash ... and then take a refresher course in the miracle of compound interest.
Without further ado...
Image source: Getty Images.
Buy into a market crash
Coronavirus is all anyone seems to be talking about these days, so let's start off by talking a little bit about coronavirus -- and the gigantic market crash it has caused.
From peak to trough, the stock market crash that started in late February and ended (we hope?) in late March subtracted about 35% from the value of the S&P 500. Now ... how much do you think the S&P 500 would have to "go back up" in order to return to where it started?
Here's a hint: The answer is a lot more than "35%."
In fact, to go from 3,370 (where the market traded around about Feb. 21) to 2,192 (where it bounced on March 22) and back again will require the S&P 500 to eventually book a 54% gain off its March 22 price.
Now here's the thing: A lot of stocks fell more than 35% in that crash. Some fell as much as 50%. For any one of these stocks, getting back to "even" at the Feb. 21 price would require a 100% gain in stock price. In other words, someone who bought at the peak and sold at the trough would lose 50% of their money. But someone who bought at the trough and rode the stock back to its peak would "double their money."
"Interesting!" you say. "But isn't this just an academic discussion? Stocks have already bounced back, so doesn't that mean it's now too late to double your money?"
Not necessarily. As it turns out, at this very moment there are still a total of 671 stocks that are trading at 50% -- or less -- of what they cost at the beginning of this year. And yes, some of these 671 are stocks with serious trouble baked into their business plans, which may never bounce back -- companies like Aurora Cannabis (NYSE: ACB) that are carrying crushing debt loads and trying to sell their product into an oversupplied market. But you can also find major, blue chip brand names like Alcoa (NYSE: AA), Schlumberger (NYSE: SLB), and American Airlines (NASDAQ: AAL) selling for 50% discounts (and more) today.
Now granted, these companies, too, have their issues. Alcoa is heading into a recession with a $1 billion net debt load, and according to data from S&P Global Market Intelligence, it has resumed burning cash in the face of coronavirus. Schlumberger's debt burden is even bigger -- like $13.3 billion in net debt, and the $7.4 billion net loss it just reported isn't going to make things any easier for it in the short term. And American -- well, we all know how the airline industry is struggling these days. Less than three years after American CEO Doug Parker made his famous, and famously ill-advised, prediction that American isn't "ever going to lose money again," the company did just that -- and, in fact, lost $2.2 billion in the first quarter.
Regardless, unless you think that after coronavirus passes, the world will have no further need for aluminum, oil, or air travel, chances are good these companies still will be around to profit from the eventual rebound. While I cannot guarantee that any one of these stocks will return to their former glory, if and when they do, the brave investors who buy their stocks today should have a good chance to double their money ... and maybe even make a little bit more.
Image source: Getty Images.
The miracle of compound interest
Now ... how about we look at a way to increase your chance of doubling your money even more?
Assume you start out with $5,000 to invest in the stock market. Now assume that you can scrimp and save, and manage to tuck away just $25 extra every month, and add that to your investments.
How long do you think it would take you to double your initial investment, and have a whopping $10,000 investment to your name?
Simple math probably tells you that 5,000 divided by 25 equals 200 -- 200 months, or nearly 17 years, to double your money, right? Well, what if I told you that you're much more likely to hit your $10,000 goal in just five years?
The "investing trick" that makes this happen is what Albert Einstein called "one of the most powerful forces in the universe" -- the miracle of compound interest.
Every day that your initial $5,000 is invested in the market, it's more and more likely to grow at the stock market's average annual rate of 10%. Every time you add $25 to your initial investment, you goose that growth rate a bit. But you also give the "compounding miracle" a bit more money to work with. Those $25s start growing right alongside your initial $5,000!
And so it is that, if you start with $5,000, add $25 monthly, and allow all of that money -- both old and new -- to grow steadily, then five short years of earning 10% annual returns should make you the proud owner of $10,162.47 "in the bank."
It's amazing, yes, and it's also true -- and here's the government website to prove it.
10 stocks we like better than Walmart
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David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Walmart wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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Stock Advisor returns as of 2/1/20
Rich Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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But you can also find major, blue chip brand names like Alcoa (NYSE: AA), Schlumberger (NYSE: SLB), and American Airlines (NASDAQ: AAL) selling for 50% discounts (and more) today. And yes, some of these 671 are stocks with serious trouble baked into their business plans, which may never bounce back -- companies like Aurora Cannabis (NYSE: ACB) that are carrying crushing debt loads and trying to sell their product into an oversupplied market. Alcoa is heading into a recession with a $1 billion net debt load, and according to data from S&P Global Market Intelligence, it has resumed burning cash in the face of coronavirus.
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But you can also find major, blue chip brand names like Alcoa (NYSE: AA), Schlumberger (NYSE: SLB), and American Airlines (NASDAQ: AAL) selling for 50% discounts (and more) today. From peak to trough, the stock market crash that started in late February and ended (we hope?) While I cannot guarantee that any one of these stocks will return to their former glory, if and when they do, the brave investors who buy their stocks today should have a good chance to double their money ... and maybe even make a little bit more.
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But you can also find major, blue chip brand names like Alcoa (NYSE: AA), Schlumberger (NYSE: SLB), and American Airlines (NASDAQ: AAL) selling for 50% discounts (and more) today. While I cannot guarantee that any one of these stocks will return to their former glory, if and when they do, the brave investors who buy their stocks today should have a good chance to double their money ... and maybe even make a little bit more. Every day that your initial $5,000 is invested in the market, it's more and more likely to grow at the stock market's average annual rate of 10%.
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But you can also find major, blue chip brand names like Alcoa (NYSE: AA), Schlumberger (NYSE: SLB), and American Airlines (NASDAQ: AAL) selling for 50% discounts (and more) today. Now here's the thing: A lot of stocks fell more than 35% in that crash. Stocks have already bounced back, so doesn't that mean it's now too late to double your money?"
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8efaaf2f-4108-4657-b777-78ae6d584e2b
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5962.0
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2020-05-02 00:00:00 UTC
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What Warren Buffett Said at Berkshire Hathaway's 2020 Shareholder Meeting
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AAL
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https://www.nasdaq.com/articles/what-warren-buffett-said-at-berkshire-hathaways-2020-shareholder-meeting-2020-05-02
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Warren Buffett is the most closely followed investor in the world, and every year, shareholders of Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) look forward to hearing what the Oracle of Omaha has to say. Because of the coronavirus pandemic, however, the tens of thousands of people who would ordinarily descend on Nebraska's largest city to see Berkshire's annual shareholder meeting have instead had to settle for a live-streamed remote event.
Despite not being able to invite shareholders to join him in person, Buffett nevertheless wanted to be sure to keep the lines of communication with investors open. Berkshire's chairman and CEO had plenty to say, answering questions compiled by well-known financial journalists and addressing some of the most important issues that Buffett's followers have had on their minds lately. Here are some of the most interesting things Buffett had to say at the May 2 shareholder meeting.
Image source: The Motley Fool.
1. Buffett still believes in stocks -- for the long haul
Buffett has always believed in America, and nothing about the coronavirus pandemic has changed his views on that. He gave an extended history lesson about the nation, pointing to the challenges it's faced in the past and the way in which it has overcome them.
Buffett has no illusions that he can predict where stocks will be tomorrow, next week, next month, or even next year. But he thinks America in 2020 is in better shape than it's been at any other time in its history, and he believes that investors who put money in stocks for the long run now will be amply rewarded.
2. If you don't want to buy individual stocks, Buffett thinks an S&P 500 index fund is still fine
Buffett has famously said that he suggests that a perfectly good way for investors to participate in the gradual rise of the stock market over time is to invest in an S&P 500 index fund. With low expenses, index funds can give investors exposure to a wide swath of the businesses that have been responsible for America's economic success over the decades.
Indeed, investing in an index fund isn't just a bet on the success of America. With so many multinational companies in the S&P 500, index funds give you ownership in the companies that are finding success around the globe.
3. Buffett doesn't want you to pay for financial advice you don't need
On a related topic, one reason Buffett advises index funds is that they're inexpensive. Too many people pay large amounts of money for financial advice, and Buffett is critical of the performance that most financial advisors are able to achieve. Buffett believes that most salespeople in the financial industry aren't able to deliver superior results, despite the fact that those salespeople generally "believe their own baloney," in his words.
4. Buffett thinks bonds aren't as good an investment as stocks
Another reason Buffett likes stocks right now is that the alternatives aren't very good. U.S. Treasury bonds with 30-year maturities yield just 1.25%. Berkshire itself has taken advantage of low interest rates by borrowing money at zero interest rates.
Buffett thinks America's economic tailwinds will persist. But when all it takes to beat 30-year Treasuries is to match the rate of inflation, it's even more of a no-brainer in the Berkshire chief's views to invest in stocks instead.
5. Buffett admits a mistake with airline stocks
There's been a lot of speculation about the moves that Berkshire Hathaway has recently made with its airline stock holdings. In early April, Berkshire sold substantial amounts of its holdings in Delta Air Lines (NYSE: DAL) and Southwest Airlines (NYSE: LUV), with disclosures necessary because of Berkshire's having held more than 10% of the two airlines' outstanding shares. At the time, it seemed as though Buffett might simply be reducing its positions below 10% to avoid future complications.
However, Buffett reported selling a total of $6.5 billion in stock during April, far more than the Delta and Southwest sales that had been reported and also including shares of United Airlines Holdings (NASDAQ: UAL) and American Airlines Group (NASDAQ: AAL) as well. Questioned later, the Berkshire CEO said that the company sold off its entire positions in the four airlines. As he explained it, he "just decided I made a mistake." He had initially figured that investing $7 billion to $8 billion to buy 10% stakes in the four biggest U.S. airlines would give him about $1 billion in underlying earnings, which seemed like a reasonable value. However, Buffett said, "It turned out I was wrong about the business."
Buffett didn't blame airline CEOs, who managed their companies well and did a lot of things right. However, the Berkshire leader no longer feels comfortable that airlines will ever recover to their pre-coronavirus levels, and even two to three years from now, it's possible that not nearly as many people will be flying. Unfortunately, even if airlines recover 70% to 80% of their pre-crisis passenger loads, they'll still have far too many planes. With airlines selling stock to raise capital, upside is limited. Buffett concluded, "The world changed for airlines, and we wish them well."
Keep watching Warren
Buffett has an optimistic attitude that investors around the globe find compelling. Even with all the uncertainty related to the coronavirus pandemic, the Oracle of Omaha's general demeanor was positive.
For those who have been near panic as a result of the bear market in February and March, listening to Buffett can restore confidence in the stock market as a creator of long-term wealth. No matter what happens to the stock market in the months to come -- or to Berkshire's share price on Monday -- Buffett's words will provide reassurance and remind us how we've always managed to overcome difficult challenges in the past -- and will again this time.
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David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Berkshire Hathaway (A shares) wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of April 16, 2020
Dan Caplinger owns shares of Berkshire Hathaway (B shares). 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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However, Buffett reported selling a total of $6.5 billion in stock during April, far more than the Delta and Southwest sales that had been reported and also including shares of United Airlines Holdings (NASDAQ: UAL) and American Airlines Group (NASDAQ: AAL) as well. Because of the coronavirus pandemic, however, the tens of thousands of people who would ordinarily descend on Nebraska's largest city to see Berkshire's annual shareholder meeting have instead had to settle for a live-streamed remote event. Berkshire's chairman and CEO had plenty to say, answering questions compiled by well-known financial journalists and addressing some of the most important issues that Buffett's followers have had on their minds lately.
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However, Buffett reported selling a total of $6.5 billion in stock during April, far more than the Delta and Southwest sales that had been reported and also including shares of United Airlines Holdings (NASDAQ: UAL) and American Airlines Group (NASDAQ: AAL) as well. Buffett thinks bonds aren't as good an investment as stocks Another reason Buffett likes stocks right now is that the alternatives aren't very good. In early April, Berkshire sold substantial amounts of its holdings in Delta Air Lines (NYSE: DAL) and Southwest Airlines (NYSE: LUV), with disclosures necessary because of Berkshire's having held more than 10% of the two airlines' outstanding shares.
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However, Buffett reported selling a total of $6.5 billion in stock during April, far more than the Delta and Southwest sales that had been reported and also including shares of United Airlines Holdings (NASDAQ: UAL) and American Airlines Group (NASDAQ: AAL) as well. If you don't want to buy individual stocks, Buffett thinks an S&P 500 index fund is still fine Buffett has famously said that he suggests that a perfectly good way for investors to participate in the gradual rise of the stock market over time is to invest in an S&P 500 index fund. Buffett admits a mistake with airline stocks There's been a lot of speculation about the moves that Berkshire Hathaway has recently made with its airline stock holdings.
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However, Buffett reported selling a total of $6.5 billion in stock during April, far more than the Delta and Southwest sales that had been reported and also including shares of United Airlines Holdings (NASDAQ: UAL) and American Airlines Group (NASDAQ: AAL) as well. Buffett still believes in stocks -- for the long haul Buffett has always believed in America, and nothing about the coronavirus pandemic has changed his views on that. Questioned later, the Berkshire CEO said that the company sold off its entire positions in the four airlines.
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5963.0
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2020-05-02 00:00:00 UTC
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Warren Buffett says the coronavirus cannot stop America, or Berkshire Hathaway
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AAL
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https://www.nasdaq.com/articles/warren-buffett-says-the-coronavirus-cannot-stop-america-or-berkshire-hathaway-2020-05-02
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By Jonathan Stempel and Megan Davies
May 2 (Reuters) - Billionaire investor Warren Buffett on Saturday said the United States' capacity to withstand crises provides a silver lining as it combats the coronavirus, even as he acknowledged that the global pandemic could significantly damage the economy and his investments.
Over more than 4-1/2 hours at the annual meeting of Berkshire Hathaway Inc BRKa.N, Buffett said his conglomerate has taken many steps responding to the pandemic, including providing cash to struggling operating units, and throwing in the towel on a multi-billion-dollar bet on U.S. airlines.
Buffett also said he remains keen on making a big acquisition, which he has not done since 2016, but has not provided financial support to companies as he did during the 2008 financial crisis because he saw nothing attractive enough, even after the recent bear market.
The 89-year-old opened the meeting in Omaha, Nebraska with 1-3/4 hours of remarks to soothe anxious investors, urging them to stay committed to stocks despite this year's bear market, even if the pandemic gets a second wind late this year.
Illustrating his remarks with dozens of plain black-and-white slides, Buffett called dealing with the pandemic "quite an experiment" that had an "extraordinarily wide" range of possible economic outcomes.
But he said Americans have persevered and prospered through such crises as the Civil War in the 1860s, the influenza pandemic a century ago and the Great Depression. American "magic" prevailed before and would do again, he said.
"Nothing can stop America when you get right down to it," Buffett said. "I will bet on America the rest of my life."
The meeting was held virtually for the first time because of the pandemic, without shareholders in attendance, and streamed by Yahoo Finance.
Buffett and Vice Chairman Greg Abel, 57, spent nearly 2-1/2 hours answering shareholder questions posed by a reporter.
Abel has day-to-day oversight of Berkshire's non-insurance businesses, and is considered by many analysts and investors a top candidate to eventually succeed Buffett as chief executive.
BERKSHIRE EXITS AIRLINES
The meeting began several hours after Berkshire reported a record $49.75 billion first-quarter net loss, reflecting huge unrealized losses on common stock holdings such as Bank of America Corp BAC.N and Apple Inc AAPL.O during the market meltdown.
While quarterly operating profit rose 6%, several larger businesses including the BNSF railroad posted declines, hurt by the negative impact of COVID-19, the illness caused by the novel coronavirus.
Buffett said operating earnings will, through at least this year, be "considerably less" than they would have been had the pandemic not occurred.
Berkshire's cash stake ended the quarter at a record $137.3 billion, though Buffett said "we're willing to do something very big," perhaps a $30 billion to $50 billion transaction.
But it won't be in U.S. airlines, after Buffett confirmed that Berkshire in April sold its "entire positions" in the four largest: American Airlines Group Inc AAL.O, Delta Air Lines Inc DAL.N, Southwest Airlines Co LUV.N and United Airlines Holdings Inc UAL.O.
Buffett said he "made a mistake" investing in the sector, which the pandemic has changed "in a very major way" with no fault of the airlines, leaving limited upside for investors.
"It is basically that we shut off air travel in this country," he said.
The meeting was devoid of the surrounding three-day weekend of dining, shopping and other celebratory events that annually draw tens of thousands of people to Omaha for what Buffett calls "Woodstock for Capitalists."
ABEL SHARES THE STAGE
Abel stood in for longtime Vice Chairman Charlie Munger, 96, who normally joins Buffett to answer shareholder questions.
Buffett said Munger was in "fine shape" and "good health," and looked forward to attending Berkshire's 2021 annual meeting.
Vice Chairman Ajit Jain, 68, who oversees Berkshire's insurance businesses and is also considered a possible CEO candidate, was also absent from the meeting. Abel lives closer to Omaha than Munger and Jain.
Berkshire has said its board of directors knows who would become CEO if Buffett died or became incapacitated.
Buffett's eldest son Howard would likely become non-executive chairman, and portfolio managers Todd Combs and Ted Weschler could succeed Buffett as chief investment officer.
Abel told investors "I don't see the culture of Berkshire changing" after Buffett and Munger are no longer there.
He also said Berkshire was likely to expand its workforce, which totaled 391,539 people at year end, even though some businesses have furloughed employees and cut salaries since the pandemic began, and could start resorting to layoffs.
Berkshire wouldn't be alone. Nationwide jobless claims have since March 21 totaled about 30.3 million, or 18% of the workforce, a level not seen since the Great Depression.
Abel nonetheless said that in five years, "we see our employment numbers being far greater than they are today."
Shareholders also elected Kenneth Chenault, a former chief executive of longtime Berkshire holding American Express Co AXP.N, to Berkshire's board, making him the company's first African American director.
FACTBOX-Warren Buffett, Berkshire Hathaway at a glance
(Reporting by Jonathan Stempel in New York; editing by Megan Davies, Alistair Bell, Cynthia Osterman and Michael Perry)
((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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But it won't be in U.S. airlines, after Buffett confirmed that Berkshire in April sold its "entire positions" in the four largest: American Airlines Group Inc AAL.O, Delta Air Lines Inc DAL.N, Southwest Airlines Co LUV.N and United Airlines Holdings Inc UAL.O. By Jonathan Stempel and Megan Davies May 2 (Reuters) - Billionaire investor Warren Buffett on Saturday said the United States' capacity to withstand crises provides a silver lining as it combats the coronavirus, even as he acknowledged that the global pandemic could significantly damage the economy and his investments. Over more than 4-1/2 hours at the annual meeting of Berkshire Hathaway Inc BRKa.N, Buffett said his conglomerate has taken many steps responding to the pandemic, including providing cash to struggling operating units, and throwing in the towel on a multi-billion-dollar bet on U.S. airlines.
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But it won't be in U.S. airlines, after Buffett confirmed that Berkshire in April sold its "entire positions" in the four largest: American Airlines Group Inc AAL.O, Delta Air Lines Inc DAL.N, Southwest Airlines Co LUV.N and United Airlines Holdings Inc UAL.O. Buffett and Vice Chairman Greg Abel, 57, spent nearly 2-1/2 hours answering shareholder questions posed by a reporter. The meeting began several hours after Berkshire reported a record $49.75 billion first-quarter net loss, reflecting huge unrealized losses on common stock holdings such as Bank of America Corp BAC.N and Apple Inc AAPL.O during the market meltdown.
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But it won't be in U.S. airlines, after Buffett confirmed that Berkshire in April sold its "entire positions" in the four largest: American Airlines Group Inc AAL.O, Delta Air Lines Inc DAL.N, Southwest Airlines Co LUV.N and United Airlines Holdings Inc UAL.O. Over more than 4-1/2 hours at the annual meeting of Berkshire Hathaway Inc BRKa.N, Buffett said his conglomerate has taken many steps responding to the pandemic, including providing cash to struggling operating units, and throwing in the towel on a multi-billion-dollar bet on U.S. airlines. Shareholders also elected Kenneth Chenault, a former chief executive of longtime Berkshire holding American Express Co AXP.N, to Berkshire's board, making him the company's first African American director.
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But it won't be in U.S. airlines, after Buffett confirmed that Berkshire in April sold its "entire positions" in the four largest: American Airlines Group Inc AAL.O, Delta Air Lines Inc DAL.N, Southwest Airlines Co LUV.N and United Airlines Holdings Inc UAL.O. Vice Chairman Ajit Jain, 68, who oversees Berkshire's insurance businesses and is also considered a possible CEO candidate, was also absent from the meeting. Abel told investors "I don't see the culture of Berkshire changing" after Buffett and Munger are no longer there.
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5964.0
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2020-05-02 00:00:00 UTC
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Warren Buffett Sold All His Airline Stocks: Should You Sell Too?
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AAL
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https://www.nasdaq.com/articles/warren-buffett-sold-all-his-airline-stocks%3A-should-you-sell-too-2020-05-03
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Warren Buffett has bailed on the airlines, with Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) selling its entire stakes in Delta Air Lines (NYSE: DAL), Southwest Airlines (NYSE: LUV), American Airlines Group (NASDAQ: AAL), and United Airlines Holdings (NASDAQ: UAL).
Airline stocks have been hard hit by the COVID-19 pandemic, with travel demand all but evaporating. Most airline stocks have lost half of their value or more this year as a result, with the industry now focused more on survival than earnings growth.
Airline data by YCharts
Speaking at Berkshire's annual meeting on Saturday, Buffett said he did not sell due to the declining share prices. Rather, "I just decided that I'd made a mistake."
The announcement is sure to put further pressure on airline shares, as investors have made a lot of money over the years doing as Buffett does. But is the Oracle of Omaha right this time around?
A rare double U-turn for Buffett
Berkshire has a long and turbulent history with the airlines. Three decades ago, he bought shares in USAir (now part of American) but ended up writing off much of that investment. In 2001, he swore off the industry, declaring that "if capitalists had been present at Kitty Hawk when the Wright brothers' plane first took off, they should have shot it down."
Image source: The Motley Fool.
But in recent years he warmed to the sector, becoming one of the largest shareholders in each of the four biggest U.S. airlines. The industry in the late 2000s went through a period of restructuring and consolidation that reduced the number of competitors chasing every passenger and allowing all the remaining participants to be more profitable.
Buffett was so enamored with airlines that in 2019 he broke one of his cardinal rules and allowed Berkshire's position in Delta, and then Southwest, to climb above the 10% threshold. Crossing 10% led to Berkshire having to make more disclosures about its stakes in those carriers, which back in early April gave us our first hints Berkshire was selling.
A tough business even in the best of times
There is certainly reason for concern. Airlines have a rocky history during recessions, as the industry has seen a number of onetime high fliers -- including TWA, Pan Am, and Eastern -- disappear during past downturns. This COVID-19 slowdown has hit the industry worse than the attacks of Sept. 11, 2001, with United, for example, expecting to fly fewer passengers in the entire month of May 2020 than it did on any single day in May 2019.
Even after the pandemic is contained, the airline business appears headed for a difficult future. Between virus fears and a likely recession, travelers could take a long time to return. Buffett said Saturday, "I don't know that three or four years from now people will fly as many passenger miles as they did last year."
Boeing management backed up that sentiment on the company'searnings calllast week, predicting it would take years for traffic to return to pre-pandemic levels. And while the airlines are getting $50 billion in bailout funds to help buffer the revenue declines, the companies have warned they might have to be significantly smaller in the future.
The airlines reported billions in losses in the first quarter, and the second quarter is going to be worse. They have traded stock warrants for government help, extended their balance sheets by adding billions in debt, and in some cases diluted shareholders by raising equity at multiyear share-price lows.
Buffett shied away from criticizing airline CEOs in his comments Saturday, saying he does not envy the challenges they face. "The world has changed for airlines, and I wish them well," he said, predicting the industry would have to shed significant portions of their fleets, and a lot of jobs, in the years to come.
He's probably right, and most of the airlines have already grounded large numbers of planes. But the airlines by and large have the wherewithal to survive a more typical recessionary travel environment. The big unknown is just how long travel demand will remain depressed, and just how severe the depression will be.
Should investors follow Buffett out the door?
Berkshire's dalliance with airlines is very off-key for an investor who famously said, "be greedy when others are fearful." Berkshire is almost without doubt selling low after buying high. And the fact that Buffett would rather take his lumps and move on than ride out the storm should send a shiver down the spines of other shareholders.
I'm one of those shareholders, and I believe he is right that the industry faces a multiyear recovery. I also believe that the airlines, thanks to all that hard work done in the past decade, can fly through this crisis without bankruptcies. But I'll concede that with so much still unknown about the extent of the pandemic, and the recession that will likely follow, it is impossible to say for sure. Traffic is currently down 90% or more year over year. If that continues through the summer and into the fall, all bets are off.
Image source: Getty Images.
It also seems likely the airlines will be slower to recover once whatever trouble lies ahead is over. But with the major airline stocks now trading at less than 0.4 times trailing sales, there is the potential for blockbuster returns if they make it through the down times and traffic does once again return.
Given the uncertainty, I think there are better sectors to buy into right now. If Buffett ends up redeploying the $6 billion in proceeds from the airline sales in the months to come, it will be hard to argue with the decision. But for now, at least, Buffett has remained on the sidelines, with Berkshire Hathaway's total cash stockpile rising to $137 billion at the end of March.
Time will tell, and as a Berkshire shareholder, I hate to go against Buffett. But given the choice between cash on the sidelines and holding Delta shares, I'm holding my shares. And I believe investors willing to hold on to top performers like Delta and Southwest will be rewarded.
Buffett's now been wrong about airlines multiple times during his long, storied career. The airlines are in a world of hurt right now. But I'm betting he didn't get it completely right when he decided to sell this time around, either.
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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Warren Buffett has bailed on the airlines, with Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) selling its entire stakes in Delta Air Lines (NYSE: DAL), Southwest Airlines (NYSE: LUV), American Airlines Group (NASDAQ: AAL), and United Airlines Holdings (NASDAQ: UAL). Airline data by YCharts Speaking at Berkshire's annual meeting on Saturday, Buffett said he did not sell due to the declining share prices. Airlines have a rocky history during recessions, as the industry has seen a number of onetime high fliers -- including TWA, Pan Am, and Eastern -- disappear during past downturns.
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Warren Buffett has bailed on the airlines, with Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) selling its entire stakes in Delta Air Lines (NYSE: DAL), Southwest Airlines (NYSE: LUV), American Airlines Group (NASDAQ: AAL), and United Airlines Holdings (NASDAQ: UAL). See the 10 stocks *Stock Advisor returns as of April 16, 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), 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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Warren Buffett has bailed on the airlines, with Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) selling its entire stakes in Delta Air Lines (NYSE: DAL), Southwest Airlines (NYSE: LUV), American Airlines Group (NASDAQ: AAL), and United Airlines Holdings (NASDAQ: UAL). See the 10 stocks *Stock Advisor returns as of April 16, 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), 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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Warren Buffett has bailed on the airlines, with Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) selling its entire stakes in Delta Air Lines (NYSE: DAL), Southwest Airlines (NYSE: LUV), American Airlines Group (NASDAQ: AAL), and United Airlines Holdings (NASDAQ: UAL). Airline stocks have been hard hit by the COVID-19 pandemic, with travel demand all but evaporating. Buffett said Saturday, "I don't know that three or four years from now people will fly as many passenger miles as they did last year."
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387fce84-62d6-4113-bc97-8b541bf29388
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5965.0
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2020-05-02 00:00:00 UTC
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Berkshire sells entire stakes in U.S airlines - Buffett
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AAL
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https://www.nasdaq.com/articles/berkshire-sells-entire-stakes-in-u.s-airlines-buffett-2020-05-02
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nan
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By David Shepardson and Jonathan Stempel
May 2 (Reuters) - Berkshire Hathaway Inc BRKa.N sold its entire stakes in the four largest U.S. airlines in April, Chairman Warren Buffett said Saturday at the company's annual meeting, saying "the world has changed" for the aviation industry.
The conglomerate had held sizeable positions in the airlines, including an 11% stake in Delta Air Lines DAL.N, 10% of American Airlines Co AAL.O, 10% of Southwest Airlines Co LUV.N and 9% of United Airlines UAL.O at the end of 2019, according to its annual report and company filings.
The conglomerate was one of the largest individual holders in the four airlines and in 2016 disclosed it had begun investing in the four carriers after avoiding the sector for years.
Airline stocks have been hard hit by the near collapse U.S. travel demand amid the coronavirus pandemic.
U.S. airlines are cutting hundreds of thousands of flights, parking thousands of planes as U.S. travel demand has fallen by about 95% and there is no clear timetable for passengers to return to flights at pre-crisis levels.
Buffett said the airline industry's outlook rapidly changed.
"We made that decision in terms of the airline business. We took money out of the business basically even at a substantial loss," Buffett said. "We will not fund a company that -- where we think that it is going to chew up money in the future."
Berkshire disclosed on April 3 it had sold about 18% of its Delta stake and 4% of its Southwest shares.
Buffett said Berkshire had invested around $7 billion or $8 billion amassing stakes in the four airlines including American Airlines Group Inc AAL.O.
"We did not take out anything like $7 or $8 billion and that was my mistake," Buffett said at the company's annual meeting which was livestreamed. "I am the one who made the decision."
Southwest, American and United declined comment.
Delta said in a statement it was aware of the sale and has "tremendous respect for Mr. Buffett and the Berkshire team." The airline added it remains "confident that the strengths that are core to Delta’s business – our people, our brand, our network and our operational reliability – will endure and position Delta to succeed."
Buffett said he previously considered investing in additional airlines.
"It is a blow to have essentially your demand dry up.... It is basically that we shut off air travel in this country," Buffett added.
Buffett previously expressed grim sentiments about the financial outlook for airlines. He did invest in USAir in 1989.
"If a farsighted capitalist had been present at Kitty Hawk, he would have done his successors a huge favor by shooting Orville down," Buffett wrote in his 2007 annual letter. "Investors have poured money into a bottomless pit, attracted by growth when they should have been repelled by it."
(Reporting by David Shepardson and Jonathan Stempel; Editing by Cynthia Osterman)
((David.Shepardson@thomsonreuters.com; 2028988324;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The conglomerate had held sizeable positions in the airlines, including an 11% stake in Delta Air Lines DAL.N, 10% of American Airlines Co AAL.O, 10% of Southwest Airlines Co LUV.N and 9% of United Airlines UAL.O at the end of 2019, according to its annual report and company filings. Buffett said Berkshire had invested around $7 billion or $8 billion amassing stakes in the four airlines including American Airlines Group Inc AAL.O. By David Shepardson and Jonathan Stempel May 2 (Reuters) - Berkshire Hathaway Inc BRKa.N sold its entire stakes in the four largest U.S. airlines in April, Chairman Warren Buffett said Saturday at the company's annual meeting, saying "the world has changed" for the aviation industry.
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The conglomerate had held sizeable positions in the airlines, including an 11% stake in Delta Air Lines DAL.N, 10% of American Airlines Co AAL.O, 10% of Southwest Airlines Co LUV.N and 9% of United Airlines UAL.O at the end of 2019, according to its annual report and company filings. Buffett said Berkshire had invested around $7 billion or $8 billion amassing stakes in the four airlines including American Airlines Group Inc AAL.O. By David Shepardson and Jonathan Stempel May 2 (Reuters) - Berkshire Hathaway Inc BRKa.N sold its entire stakes in the four largest U.S. airlines in April, Chairman Warren Buffett said Saturday at the company's annual meeting, saying "the world has changed" for the aviation industry.
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The conglomerate had held sizeable positions in the airlines, including an 11% stake in Delta Air Lines DAL.N, 10% of American Airlines Co AAL.O, 10% of Southwest Airlines Co LUV.N and 9% of United Airlines UAL.O at the end of 2019, according to its annual report and company filings. Buffett said Berkshire had invested around $7 billion or $8 billion amassing stakes in the four airlines including American Airlines Group Inc AAL.O. By David Shepardson and Jonathan Stempel May 2 (Reuters) - Berkshire Hathaway Inc BRKa.N sold its entire stakes in the four largest U.S. airlines in April, Chairman Warren Buffett said Saturday at the company's annual meeting, saying "the world has changed" for the aviation industry.
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The conglomerate had held sizeable positions in the airlines, including an 11% stake in Delta Air Lines DAL.N, 10% of American Airlines Co AAL.O, 10% of Southwest Airlines Co LUV.N and 9% of United Airlines UAL.O at the end of 2019, according to its annual report and company filings. Buffett said Berkshire had invested around $7 billion or $8 billion amassing stakes in the four airlines including American Airlines Group Inc AAL.O. We took money out of the business basically even at a substantial loss," Buffett said.
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5966.0
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2020-05-01 00:00:00 UTC
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Why Boeing Stock Is Up After a Dismal Earnings Report
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AAL
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https://www.nasdaq.com/articles/why-boeing-stock-is-up-after-a-dismal-earnings-report-2020-05-01
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Boeing (NYSE:BA) delivered its first-quarter results on April 29. The numbers were ugly, as you might expect for a company largely reliant on selling airplanes at a time when the novel coronavirus pandemic is hammering airlines. In addition, Boeing stock continues to suffer fallout from the self-inflicted 737-MAX disaster.
Source: Alex JW Robinson / Shutterstock.com
Despite a big revenue drop, worse-than-expected losses, a big leap in debt levels, and the announcement of layoffs, Boeing stock actually gained ground on Wednesday.
If that sounds contradictory to what the company reported, it’s probably a case of the market expecting the news to be much worse than it was.
Boeing Delivers Q1 Earnings, BA Pops
Boeing delivered its earnings for the first quarter of 2020 on Wednesday, and the market reaction was somewhat surprising.
The company missed on revenue, reporting $16.9 billion versus the expected $17.1 billion. That’s a 26% year-over-year drop. The adjusted loses per share of $1.70 were also worse than analysts had been expecting. While burning through $4.3 billion in cash for the quarter, the company took on more than $10 billion in debt. That raises its total debts to $38.9 billion.
30 Stocks on a Deathwatch
The company noted that share buybacks and dividends have been suspended. Adding to the bad news for the quarter was an announcement of layoffs, with the company targeting a 10% reduction in its workforce.
The results reflect a business being hit by a one-two punch of the 737 MAX situation and the novel coronavirus pandemic. Those factors combined for a delivery of just 50 planes in Q1, down 66%.
Boeing CEO David Calhoun tried to sound a positive note:
“While Covid-19 is adding unprecedented pressure to our business, we remain confident in our long-term future. We continue to support our defense customers in their critical national security missions. We are progressing toward the safe return to service of the 737 MAX, and we are driving safety, quality and operational excellence into all that we do every day. Air travel has always been resilient, our portfolio of products and technology is well-positioned, and we are confident we will emerge from the crisis and thrive again as a leader of our industry.”
The good news in Boeing’s Q1 earnings was a total backlog of over 5,000 commercial plans. Those orders represent $439 billion in revenue. However, there is a risk that order backlog could shrink. Airlines have continued to cancel 737 MAX orders. If the coronavirus pandemic continues to ground flights, even giants like American Airlines (NASDAQ:AAL) will be rethinking planned expenditures on new aircraft.
The Bottom Line on Boeing Stock
If things sound a little dire for Boeing’s long-term prospects, there is still optimism that the company can turn things around. In November, Northwestern University Kellogg School of Management professor Tim Calkin told NPR:
“If you take the right steps today, I think Boeing can come across as a brand that is still strong, is still trusted, and maybe is better for all of this. But if you don’t (take the right steps), it creates deep, long-term problems for the company.”
Most investment analysts continue to have Boeing stock rated as a hold at this point, while they wait to see what happens next. Its pop yesterday seems more like a “it could have been worse” reaction than the start of that hoped-for recovery. With BA down 60% since its February high close of $347.45, off by 63% over the past 12 months, and at its lowest level since 2016, now could be seen as a buying opportunity.
But only if you have confidence that the situation for the company isn’t going to worsen. And at the moment — with air travel at a virtual standstill, Boeing taking on $10 billion in debt, layoffs, and the 737 MAX still grounded — that’s a big leap of faith.
As of this writing, Brad Moon did not hold a position in any of the aforementioned securities.
The post Why Boeing Stock Is Up After a Dismal Earnings Report 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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If the coronavirus pandemic continues to ground flights, even giants like American Airlines (NASDAQ:AAL) will be rethinking planned expenditures on new aircraft. Air travel has always been resilient, our portfolio of products and technology is well-positioned, and we are confident we will emerge from the crisis and thrive again as a leader of our industry.” The good news in Boeing’s Q1 earnings was a total backlog of over 5,000 commercial plans. In November, Northwestern University Kellogg School of Management professor Tim Calkin told NPR: “If you take the right steps today, I think Boeing can come across as a brand that is still strong, is still trusted, and maybe is better for all of this.
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If the coronavirus pandemic continues to ground flights, even giants like American Airlines (NASDAQ:AAL) will be rethinking planned expenditures on new aircraft. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Boeing (NYSE:BA) delivered its first-quarter results on April 29. Source: Alex JW Robinson / Shutterstock.com Despite a big revenue drop, worse-than-expected losses, a big leap in debt levels, and the announcement of layoffs, Boeing stock actually gained ground on Wednesday.
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If the coronavirus pandemic continues to ground flights, even giants like American Airlines (NASDAQ:AAL) will be rethinking planned expenditures on new aircraft. Source: Alex JW Robinson / Shutterstock.com Despite a big revenue drop, worse-than-expected losses, a big leap in debt levels, and the announcement of layoffs, Boeing stock actually gained ground on Wednesday. Boeing Delivers Q1 Earnings, BA Pops Boeing delivered its earnings for the first quarter of 2020 on Wednesday, and the market reaction was somewhat surprising.
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If the coronavirus pandemic continues to ground flights, even giants like American Airlines (NASDAQ:AAL) will be rethinking planned expenditures on new aircraft. If that sounds contradictory to what the company reported, it’s probably a case of the market expecting the news to be much worse than it was. The adjusted loses per share of $1.70 were also worse than analysts had been expecting.
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8ddbc182-694d-4188-af45-3b21431a3be9
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2020-05-01 00:00:00 UTC
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U.S. airlines now requiring masks, promise more safety measures
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AAL
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https://www.nasdaq.com/articles/u.s.-airlines-now-requiring-masks-promise-more-safety-measures-2020-05-01
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nan
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By Tracy Rucinski and David Shepardson
May 1 (Reuters) - With the largest U.S. airlines now set to mandate - and provide - facial coverings for all passengers over the next two weeks, many are turning their focus to other measures to prevent the spread of the new coronavirus during air travel.
United Airlines Holdings Inc UAL.O, for example, told journalists on Friday that it has purchased hundreds of hospital-type electrostatic fogging machines that it will start using in June to decontaminate airplane cabin surfaces and crevices before every flight.
The measures are among the steps airlines are taking to help passengers feel more comfortable about flying in the midst of the pandemic, which has decimated travel demand.
The industry, through lobby Airlines for America, has also begun discussions with policymakers in Washington on measures such as virus testing and pre-boarding temperature checks, United Chief Communications Officer Josh Earnest said.
Southwest Airlines Co LUV.N and Alaska Airlines ALK.N on Friday joined other major airlines in imposing facial coverings.
JetBlue Airways Corp JBLU.O was the first to mandate such a policy, and on Thursday United, Delta Air Lines Inc DAL.N American Airlines Group Inc AAL.O and low-cost carrier Frontier Airlines, which is owned by private equity firm Indigo Partners LLC, followed suit.
The largest airlines provide masks for passengers who do not have their own facial covering. United noted that recent supply issues with masks have now eased.
The requirements are being made by airlines on an individual basis and will be included in the contracts of carriage and explained on their websites. They are not mandated by the Federal Aviation Administration, which has said that it only has the authority to regulate matters that are directly tied to air safety.
Asked how airlines would enforce the policy, United's Earnest said: "We're gonna ask customers to comply with the requirement."
Peter DeFazio, chair of the House Committee on Transportation and Infrastructure, applauded the airlines' "common-sense measure" on Friday while calling on the U.S. government to "provide clear and consistent policies that reflect the seriousness of this global pandemic."
Airlines have also made face coverings mandatory for employees.
In Canada, regulators started requiring that passengers wear a non-medical mask or face covering during the boarding process and flights last month, and the European Commission has said that it is working on a set of rules for the safe reopening of air travel.
(Reporting by David Shepardson and Tracy Rucinski Editing by Chizu Nomiyama and Steve Orlofsky)
((David.Shepardson@thomsonreuters.com; 2028988324;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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JetBlue Airways Corp JBLU.O was the first to mandate such a policy, and on Thursday United, Delta Air Lines Inc DAL.N American Airlines Group Inc AAL.O and low-cost carrier Frontier Airlines, which is owned by private equity firm Indigo Partners LLC, followed suit. By Tracy Rucinski and David Shepardson May 1 (Reuters) - With the largest U.S. airlines now set to mandate - and provide - facial coverings for all passengers over the next two weeks, many are turning their focus to other measures to prevent the spread of the new coronavirus during air travel. Peter DeFazio, chair of the House Committee on Transportation and Infrastructure, applauded the airlines' "common-sense measure" on Friday while calling on the U.S. government to "provide clear and consistent policies that reflect the seriousness of this global pandemic."
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JetBlue Airways Corp JBLU.O was the first to mandate such a policy, and on Thursday United, Delta Air Lines Inc DAL.N American Airlines Group Inc AAL.O and low-cost carrier Frontier Airlines, which is owned by private equity firm Indigo Partners LLC, followed suit. By Tracy Rucinski and David Shepardson May 1 (Reuters) - With the largest U.S. airlines now set to mandate - and provide - facial coverings for all passengers over the next two weeks, many are turning their focus to other measures to prevent the spread of the new coronavirus during air travel. The largest airlines provide masks for passengers who do not have their own facial covering.
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JetBlue Airways Corp JBLU.O was the first to mandate such a policy, and on Thursday United, Delta Air Lines Inc DAL.N American Airlines Group Inc AAL.O and low-cost carrier Frontier Airlines, which is owned by private equity firm Indigo Partners LLC, followed suit. By Tracy Rucinski and David Shepardson May 1 (Reuters) - With the largest U.S. airlines now set to mandate - and provide - facial coverings for all passengers over the next two weeks, many are turning their focus to other measures to prevent the spread of the new coronavirus during air travel. Southwest Airlines Co LUV.N and Alaska Airlines ALK.N on Friday joined other major airlines in imposing facial coverings.
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JetBlue Airways Corp JBLU.O was the first to mandate such a policy, and on Thursday United, Delta Air Lines Inc DAL.N American Airlines Group Inc AAL.O and low-cost carrier Frontier Airlines, which is owned by private equity firm Indigo Partners LLC, followed suit. By Tracy Rucinski and David Shepardson May 1 (Reuters) - With the largest U.S. airlines now set to mandate - and provide - facial coverings for all passengers over the next two weeks, many are turning their focus to other measures to prevent the spread of the new coronavirus during air travel. The largest airlines provide masks for passengers who do not have their own facial covering.
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4cbcd7b8-12e3-4afc-8a9e-3d3d116f70ff
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5968.0
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2020-05-01 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-2020-05-01
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nan
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nan
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What happened
Airline shares were under pressure Friday following United Airlines Holdings' (NASDAQ: UAL) first-quarter earnings release, providing fresh evidence of the damage done to the industry by the COVID-19 pandemic.
Shares of United and American Airlines Group (NASDAQ: AAL) led the sector lower on Friday, each down 7% apiece. Shares of other carriers, including Delta Air Lines (NYSE: DAL), Southwest Airlines (NYSE: LUV), Alaska Air Group (NYSE: ALK), JetBlue Airways (NASDAQ: JBLU), Hawaiian Holdings (NASDAQ: HA), Spirit Airlines (NYSE: SAVE), and Allegiant Travel (NASDAQ: ALGT) were all also down more than 5%.
The stocks clawed back some of their initial declines as the morning continued, but it appears it is going to be another difficult day for airline stocks.
So what
After markets closed Thursday, United reported an adjusted loss of $2.57 per share on revenue of $7.98 billion, compared to analyst expectations of a $3.47-per-share loss on revenue of $8.22 billion. Revenue was down 16.8% year over year, and the company's operating margin fell to -12.2% from 5.2% in the first quarter of 2019.
Investors knew going into earnings season that the first quarter would be bad for airlines and the second quarter would be worse. United was hit particularly hard in the early days of the pandemic because it has the most exposure to Asia among any carrier based in the mainland U.S.
Image source: Getty Images.
"We have been at the forefront of warning how deep of an impact we expect this crisis could have and how long we expect it could last," CEO Oscar Munoz said in a statement. "While we are still in the midst of this crisis, we will not hesitate to make difficult decisions we believe will ensure the long-term success of our company."
United's total liquidity as of close of business April 29 was $9.6 billion, including $2 billion in undrawn funds under its revolving credit facility. The airline said it expects to burn though about $40 million to $45 million in cash per day in the second quarter.
The question for now is how long travel demand, and with it airline revenue, will remain depressed. The industry has billions in liquidity and access to additional funds, but no amount of capital will be enough if traffic does not return in the months to come.
Delta appears likely to have the resources to survive, and United seems pretty well positioned for an extended downturn, but at least one Wall Street analyst is growing worried about American. Evercore ISI analyst Duane Pfennigwerth in a research note out Friday lowered his price target on American to $1 from $10, saying that American has the weakest balance sheet among the airlines.
Now what
Although there is news on only a couple of airlines on Friday morning, no company is immune to the impact of the COVID-19 pandemic, and the sector stocks for weeks now have tended to trade together.
American has the most debt, but it is far from the only airline vulnerable to an extended downturn. Hawaiian has a niche network heavy on expensive transpacific flying and is reliant on consumers committing to expensive vacations. Spirit has significant debt, too, and is having a hard time meeting the U.S. government requirements to receive bailout funds. JetBlue came into the pandemic in the early stages of a transformation, and its model -- offering premium service for a higher price -- might not play well if the U.S., as expected, falls into a recession.
The airlines did come into this crisis healthier than at any point in recent history, and I am hopeful they all have the wherewithal to survive without bankruptcy filings. But until we have more clarity about how long the pandemic will last, and what the postvirus economy will look like, it is going to be hard for these shares to find a bottom.
For now, investors who want to take a risk and buy into the industry should focus on top names only. I'd recommend Delta, Southwest, and Alaska, in that order.
10 stocks we like better than JetBlue Airways
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David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and JetBlue Airways wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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 United and American Airlines Group (NASDAQ: AAL) led the sector lower on Friday, each down 7% apiece. Delta appears likely to have the resources to survive, and United seems pretty well positioned for an extended downturn, but at least one Wall Street analyst is growing worried about American. Now what Although there is news on only a couple of airlines on Friday morning, no company is immune to the impact of the COVID-19 pandemic, and the sector stocks for weeks now have tended to trade together.
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Shares of United and American Airlines Group (NASDAQ: AAL) led the sector lower on Friday, each down 7% apiece. Shares of other carriers, including Delta Air Lines (NYSE: DAL), Southwest Airlines (NYSE: LUV), Alaska Air Group (NYSE: ALK), JetBlue Airways (NASDAQ: JBLU), Hawaiian Holdings (NASDAQ: HA), Spirit Airlines (NYSE: SAVE), and Allegiant Travel (NASDAQ: ALGT) were all also down 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 and American Airlines Group (NASDAQ: AAL) led the sector lower on Friday, each down 7% apiece. What happened Airline shares were under pressure Friday following United Airlines Holdings' (NASDAQ: UAL) first-quarter earnings release, providing fresh evidence of the damage done to the industry by the COVID-19 pandemic. Shares of other carriers, including Delta Air Lines (NYSE: DAL), Southwest Airlines (NYSE: LUV), Alaska Air Group (NYSE: ALK), JetBlue Airways (NASDAQ: JBLU), Hawaiian Holdings (NASDAQ: HA), Spirit Airlines (NYSE: SAVE), and Allegiant Travel (NASDAQ: ALGT) were all also down more than 5%.
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Shares of United and American Airlines Group (NASDAQ: AAL) led the sector lower on Friday, each down 7% apiece. American has the most debt, but it is far from the only airline vulnerable to an extended downturn. The Motley Fool recommends Alaska Air Group, Hawaiian Holdings, and JetBlue Airways.
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578237d5-cfd2-4677-8a12-58b0c7140032
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5969.0
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2020-05-01 00:00:00 UTC
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Government Bailout Gives American Airlines Stock Speculative Chances
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AAL
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https://www.nasdaq.com/articles/government-bailout-gives-american-airlines-stock-speculative-chances-2020-05-01
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
President Donald Trump’s administration bailed out American Airlines (NASDAQ:AAL), but it can’t make people fly. It also can’t single-handedly save AAL stock.
Source: GagliardiPhotography / Shutterstock.com
A $5.8 billion check from the government keeps the company out of bankruptcy. Another $4.8 billion loan may come soon.
This gets American Airlines through the worst of the novel coronavirus pandemic. It means the company is back to flying.
But that doesn’t make AAL stock worth buying.
The New Normal for AAL Stock
In its earnings report for the March quarter, American reported a loss of $2.2 billion. This was cut in half through non-cash write-downs of aircraft which were taken out of service, and special deals with its unions. The airline said it ended the quarter with $6.8 billion of liquidity and that government aid means it will end June with $11 billion.
9 Healthcare Stocks to Buy Even After the Coronavirus Fades
Those bullish on the airline insist “data continues to support COVID-19 as only slightly above the seasonal flu.” This is based on the idea that, if everyone were being tested, only 0.1% of those who have the virus would die.
A federal grant will pay American Airlines’ employees through September. It can now break even on just $2.2 billion of revenue each quarter, 20% of its previous level, flying planes at 30% capacity.
To get traffic to that level, American has announced new cleaning procedures. It will give passengers sanitizing wipes and face masks. Passengers will be required to wear masks starting May 11.
Meanwhile the airline is facing a surge of Covid-19 cases among ground personnel. Thousands of pilots and flight attendants have taken early retirement. The government calls the impact of the virus on the industry “worse than 9/11,” justifying the giveaway.
If You Fly Planes, Will Passengers Come?
The question is, with the airline propped up by the government, will people fly?
Right now, the answer is no. The number of passengers going through airport security at the end of April was just 5% of its level from a year ago, about 129,000. American is flying more long-haul cargo than people.
Long before the virus, airlines were publicizing their air circulation, trying to alleviate passenger concerns. Airline cabin air is refreshed 20 times per hour, running through HEPA filters, with separate ventilation every seven rows. The Centers for Disease Control and Prevention insists viruses don’t spread easily on planes.
While HEPA filters are effective against bacteria, Covid-19 is caused by a virus, which is much smaller. A visualization making the rounds on Twitter (NYSE:TWTR) shows that a single cough, recirculated, can spread the virus throughout the cabin of a Boeing (NYSE:BA) 767. Worse, people can be shedding the virus without symptoms. Banning sick people from planes will not, by itself, prevent this spread.
There are long-term fixes. Putting air circulation systems in the floor of the cabin can help. Columbia University is experimenting with ultraviolet light. Boeing has been working on self-cleaning bathrooms. But none of these innovations will be available in 2020.
The question is whether all this publicity will get people back on planes, and when? The government bailout won’t last through the fourth quarter.
The Bottom Line on American Airlines
Buying AAL stock today is a speculation. Normal investment rules do not apply.
The market capitalization for American is down to about $4.5 billion, against $8.5 billion of revenue in the first quarter. But those results represent just one month under the pandemic. In the post-pandemic world, $8.5 billion could be a full year’s revenue.
The bailout was also short term. Many people objected to it, noting the large dividends and buybacks American engaged in when times were flush.
If American Airlines can become profitable at 30% of pre-pandemic capacity by September, it may be able to grow from there. That’s what you’re betting on if you buy AAL stock today. Just don’t make bets with money you can’t afford to lose.
Dana Blankenhorn has been a financial and technology journalist since 1978. He is the author of the environmental thriller Bridget O’Flynn and the Bear, available at the Amazon Kindle store. Follow him on Twitter at @danablankenhorn. As of this writing he owned no shares in companies mentioned in this story.
The post Government Bailout Gives American Airlines Stock Speculative Chances 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 President Donald Trump’s administration bailed out American Airlines (NASDAQ:AAL), but it can’t make people fly. It also can’t single-handedly save AAL stock. But that doesn’t make AAL stock worth buying.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips President Donald Trump’s administration bailed out American Airlines (NASDAQ:AAL), but it can’t make people fly. The Bottom Line on American Airlines Buying AAL stock today is a speculation. It also can’t single-handedly save AAL stock.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips President Donald Trump’s administration bailed out American Airlines (NASDAQ:AAL), but it can’t make people fly. The New Normal for AAL Stock In its earnings report for the March quarter, American reported a loss of $2.2 billion. It also can’t single-handedly save AAL stock.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips President Donald Trump’s administration bailed out American Airlines (NASDAQ:AAL), but it can’t make people fly. It also can’t single-handedly save AAL stock. But that doesn’t make AAL stock worth buying.
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839faef1-addb-42ca-ba1c-b6ef7d17387f
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5970.0
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2020-05-01 00:00:00 UTC
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Major U.S. Airlines Add Requirement for Passenger Face Masks
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AAL
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https://www.nasdaq.com/articles/major-u.s.-airlines-add-requirement-for-passenger-face-masks-2020-05-01
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nan
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nan
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When United Airlines Holdings (NASDAQ: UAL) announced last week that it would immediately begin requiring its flight attendants to wear face masks while on duty, the Association of Flight Attendants union welcomed the new policy. It also sent letters to the Secretaries of Transportation and Health and Human Services asking them to use their authority to also require the protective face coverings on airline passengers.
JetBlue Airways (NASDAQ: JBLU) this week included passengers in its new personal protective equipment (PPE) policy requiring masks beginning Monday, May 4. Now, the other major U.S. airlines have also added passengers to the PPE policies.
Image source: Getty Images.
United and Delta Air Lines (NYSE: DAL) will now require face coverings on passengers starting May 4, and American Airlines Group (NASDAQ: AAL) will begin the policy on May 11.
In announcing the added layer of protection, the airlines cite the Centers for Disease Control and Prevention (CDC) guidelines that wearing simple face coverings can help slow the spread of the COVID-19 virus. The airlines have also added new operating and cleaning practices meant to help make customers more comfortable with resuming air travel.
American said it has increased cleaning frequency in gate areas, ticket and service counters, and baggage service offices. Delta said it has added employee temperature checks and is adding electrostatic spraying of employee work and break areas. United has amended snack and service procedures "to minimize touchpoints between crew and customer," related to snacks, beverages, hand towel and trash collection services.
10 stocks we like better than United Airlines Holdings
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and United Airlines Holdings wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of April 16, 2020
Howard Smith has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Delta Air Lines. The Motley Fool recommends JetBlue Airways. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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United and Delta Air Lines (NYSE: DAL) will now require face coverings on passengers starting May 4, and American Airlines Group (NASDAQ: AAL) will begin the policy on May 11. JetBlue Airways (NASDAQ: JBLU) this week included passengers in its new personal protective equipment (PPE) policy requiring masks beginning Monday, May 4. In announcing the added layer of protection, the airlines cite the Centers for Disease Control and Prevention (CDC) guidelines that wearing simple face coverings can help slow the spread of the COVID-19 virus.
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United and Delta Air Lines (NYSE: DAL) will now require face coverings on passengers starting May 4, and American Airlines Group (NASDAQ: AAL) will begin the policy on May 11. When United Airlines Holdings (NASDAQ: UAL) announced last week that it would immediately begin requiring its flight attendants to wear face masks while on duty, the Association of Flight Attendants union welcomed the new policy. JetBlue Airways (NASDAQ: JBLU) this week included passengers in its new personal protective equipment (PPE) policy requiring masks beginning Monday, May 4.
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United and Delta Air Lines (NYSE: DAL) will now require face coverings on passengers starting May 4, and American Airlines Group (NASDAQ: AAL) will begin the policy on May 11. When United Airlines Holdings (NASDAQ: UAL) announced last week that it would immediately begin requiring its flight attendants to wear face masks while on duty, the Association of Flight Attendants union welcomed the new policy. 10 stocks we like better than United Airlines Holdings When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen.
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United and Delta Air Lines (NYSE: DAL) will now require face coverings on passengers starting May 4, and American Airlines Group (NASDAQ: AAL) will begin the policy on May 11. It also sent letters to the Secretaries of Transportation and Health and Human Services asking them to use their authority to also require the protective face coverings on airline passengers. JetBlue Airways (NASDAQ: JBLU) this week included passengers in its new personal protective equipment (PPE) policy requiring masks beginning Monday, May 4.
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32aee88a-811e-4b87-b90e-d7e7c1c2812c
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5971.0
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2020-05-01 00:00:00 UTC
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5 Top Stock Trades for Monday: AAPL, XOM, TSLA, AAL, WDC
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AAL
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https://www.nasdaq.com/articles/5-top-stock-trades-for-monday%3A-aapl-xom-tsla-aal-wdc-2020-05-01
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Friday had plenty of big movers for us to pick from. That said, let’s look at a few top stock trades for next week.
Top Stock Trades for Monday No. 1: Apple (AAPL)
Click to Enlarge
Source: Chart courtesy of StockCharts.com
Shares of Apple (NASDAQ:AAPL) are struggling to rally on Friday, despite beating on earnings. Keep in mind, the overall market was under pressure too, while Apple is up big from the March lows.
All things considered, Friday’s performance wasn’t that bad. From here, though, Apple rests at an interesting spot.
Shares sit on steep uptrend support (blue line) with the 10-day moving average not far below, at $283. A move below opens the stock up to a decline to the $270 level. There AAPL will find its 50-day moving average and 50% retracement.
It would be encouraging to see this level act as support. If it doesn’t, however, the 200-day moving average may be the next stop.
7 Smart Stocks to Watch as Volatility Stays Soaring
On the upside, Apple needs to take out the $300 to $305 zone.
Top Stock Trades for Monday No. 2: Exxon Mobil (XOM)
Click to Enlarge
Source: Chart courtesy of StockCharts.com
Exxon Mobil (NYSE:XOM) is also in retreat on Friday, but fell much harder than Apple — ending the day down more than 7% after a surprise Q1 loss. Like Apple, Exxon shares have an important level coming up.
Near $43, XOM stock has its 50-day moving average and uptrend support mark (blue line). If that level holds, Exxon may rebound higher and retest recent resistance near $47.50. Above resistance and the 50% retracement near $50.25 is possible.
On the downside, though, a drop to the 23.6% retracement at $39.61 may be on the table should support give way.
Keep in mind, oil may be a driving force of Exxon’s stock price.
Top Stock Trades for Monday No. 3: Tesla (TSLA)
Click to Enlarge
Source: Chart courtesy of StockCharts.com
Tesla (NASDAQ:TSLA) shares took it on the chin on Friday, a day after a painful post-earnings reversal. This time, the selling pressure came from a questionable string of tweets from CEO Elon Musk.
In any regard, the stock is seeing a solid bounce off uptrend support (blue line), despite the heavy decline. If TSLA can hold $700, see if the stock can reclaim the 10-day moving average and push up to $800.
On the downside, a move back below $700 and uptrend support puts the 50% retracement in play. Below that and Tesla may visit its 50-day moving average at $632.
Top Stock Trades for Monday No. 4: American Airlines (AAL)
Click to Enlarge
Source: Chart courtesy of StockCharts.com
American Airlines (NASDAQ:AAL) took a dive on Friday, falling more than 11%. As a result, shares continue to look unhealthy.
Shares are putting in a series of lower highs, a bearish technical development highlighted on the chart with purple arrows. A move below $10 puts the April low of $9.09 in play.
On the upside, bulls need to see AAL end its streak of lower highs. To do so, it must get to $12.90 or higher. It would also be beneficial to see American Air close over its 50-day moving average. Right now, this chart is not enticing from the long side.
Top Trades for Tomorrow No. 5: Western Digital (WDC)
Click to Enlarge
Source: Chart courtesy of StockCharts.com
As is the theme today, Western Digital (NASDAQ:WDC) is also taking it on the chin — down more than 12%. However, it’s seeing a decent bounce off the lows, reclaiming the $40 level.
Above $37.50 and technically speaking, Western Digital is okay. That said, it has a lot of overhead resistance. That includes the 10-day, 20-day and 50-day moving averages, the 38.2% and 50% retracements and range resistance between $47 and $48.
If WDC can clear $50, it can fill the gap up to $52.50 and possibly run to the 200-day moving average. But man, the stock needs to do a lot in order to get there. Below $37.50 and it could fill a different gap down toward $33.80.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, he was long AAPL.
The post 5 Top Stock Trades for Monday: AAPL, XOM, TSLA, AAL, WDC 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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4: American Airlines (AAL) Click to Enlarge Source: Chart courtesy of StockCharts.com American Airlines (NASDAQ:AAL) took a dive on Friday, falling more than 11%. On the upside, bulls need to see AAL end its streak of lower highs.
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Click to Enlarge Source: Chart courtesy of StockCharts.com American Airlines (NASDAQ:AAL) took a dive on Friday, falling more than 11%. The post 5 Top Stock Trades for Monday: AAPL, XOM, TSLA, AAL, WDC appeared first on InvestorPlace. 4: American Airlines (AAL)
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The post 5 Top Stock Trades for Monday: AAPL, XOM, TSLA, AAL, WDC appeared first on InvestorPlace. 4: American Airlines (AAL) Click to Enlarge Source: Chart courtesy of StockCharts.com American Airlines (NASDAQ:AAL) took a dive on Friday, falling more than 11%.
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The post 5 Top Stock Trades for Monday: AAPL, XOM, TSLA, AAL, WDC appeared first on InvestorPlace. 4: American Airlines (AAL) Click to Enlarge Source: Chart courtesy of StockCharts.com American Airlines (NASDAQ:AAL) took a dive on Friday, falling more than 11%.
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4f14c9bb-00ee-4751-9ed3-5f185ef18400
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5972.0
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2020-04-30 00:00:00 UTC
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Why Shares of American Airlines and Other Carriers Are Declining Today
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AAL
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https://www.nasdaq.com/articles/why-shares-of-american-airlines-and-other-carriers-are-declining-today-2020-04-30
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nan
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nan
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What happened
Shares of American Airlines Group (NASDAQ: AAL) lost 10% at the open on Thursday after the company reported first-quarter results, and other airline stocks were also hit hard, with United Airlines Holdings (NASDAQ: UAL) and Delta Air Lines (NYSE: DAL) falling 9% and 5%, respectively.
The stocks recovered some of those losses as the morning went on, but investors were clearly disappointed by their first read of American's earnings report.
So what
Airline investors went into first-quarter earnings season bracing for the worst, knowing the COVID-19 pandemic has caused travel demand to evaporate and has led to airlines scrambling to cut costs. The real damage is expected in the second quarter, which will include the April U.S. shutdown, but there was plenty of disruption in March to be seen in the first-quarter results.
American's quarter was actually worse than expected, with the airline posting a loss of $2.65 per share on revenue of $8.52 billion, compared with analyst expectations for a loss of $2.33 per share on revenue of $8.9 billion.
Image source: American Airlines.
"Never before has our airline, or our industry, faced such a significant challenge," CEO Doug Parker said in a statement. "We have a lot of difficult work ahead of us. And while there is still uncertainty in what's to come, we are confident that through the dedication of the American Airlines team and our swift actions, we will get through this for our team, our customers and our shareholders."
American ended the quarter with $6.8 billion in available liquidity and expects to burn through $70 million per day in the current quarter. But the airline does expect its cash balance to be up to $11 billion by June 30 and hopes to have its daily burn rate down to $50 million per day by then, thanks to U.S. government support funds and an aggressive internal cost-cutting effort.
The airline expects to reduce total operational and capital expenditures by $12 billion in 2020, including retiring four separate aircraft types. But with the post-pandemic recovery in travel demand expected to take years, it is likely that additional capital raises are up ahead.
United is the next airline to report, and investors were likely reading into the American report and worrying about what to expect from that carrier after markets close tonight. Delta reported its first-quarter results last week and actually lost less money than expected, but the entire industry still faces an uphill climb and could need to wait years until travel returns to pre-pandemic levels.
Now what
This is an odd earnings season for the airlines, as investors know the first quarter was bad and the second quarter will be worse. So, while headline numbers might spook investors, the markets are more likely to focus on management commentary about what they are seeing right now and what they expect in the quarters to come.
That might explain why the stocks recovered some of their initial losses. During the postearnings callThursday morning, Parker and his team said they see a slow recovery but continue to hope they will be able to avoid furloughs. American could emerge from this crisis smaller, but the airline has no plans to cut hubs or dramatically change its service footprint.
American still has an industry-high debt load, which means it has slightly fewer levers to pull when trying to find liquidity. But I believe all the major airlines have the wherewithal to survive the crisis and its aftermath without resorting to bankruptcies. Still, given the extent of the damage done and the slow recovery ahead, I'd advise sticking with top operators including Delta and Southwest Airlines instead of buying into American or United right now.
10 stocks we like better than United Airlines Holdings
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and United Airlines Holdings wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of April 16, 2020
Lou Whiteman owns shares of Delta Air Lines. The Motley Fool 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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What happened Shares of American Airlines Group (NASDAQ: AAL) lost 10% at the open on Thursday after the company reported first-quarter results, and other airline stocks were also hit hard, with United Airlines Holdings (NASDAQ: UAL) and Delta Air Lines (NYSE: DAL) falling 9% and 5%, respectively. But the airline does expect its cash balance to be up to $11 billion by June 30 and hopes to have its daily burn rate down to $50 million per day by then, thanks to U.S. government support funds and an aggressive internal cost-cutting effort. Delta reported its first-quarter results last week and actually lost less money than expected, but the entire industry still faces an uphill climb and could need to wait years until travel returns to pre-pandemic levels.
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What happened Shares of American Airlines Group (NASDAQ: AAL) lost 10% at the open on Thursday after the company reported first-quarter results, and other airline stocks were also hit hard, with United Airlines Holdings (NASDAQ: UAL) and Delta Air Lines (NYSE: DAL) falling 9% and 5%, respectively. American's quarter was actually worse than expected, with the airline posting a loss of $2.65 per share on revenue of $8.52 billion, compared with analyst expectations for a loss of $2.33 per share on revenue of $8.9 billion. See the 10 stocks *Stock Advisor returns as of April 16, 2020 Lou Whiteman owns shares of Delta Air Lines.
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What happened Shares of American Airlines Group (NASDAQ: AAL) lost 10% at the open on Thursday after the company reported first-quarter results, and other airline stocks were also hit hard, with United Airlines Holdings (NASDAQ: UAL) and Delta Air Lines (NYSE: DAL) falling 9% and 5%, respectively. American's quarter was actually worse than expected, with the airline posting a loss of $2.65 per share on revenue of $8.52 billion, compared with analyst expectations for a loss of $2.33 per share on revenue of $8.9 billion. United is the next airline to report, and investors were likely reading into the American report and worrying about what to expect from that carrier after markets close tonight.
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What happened Shares of American Airlines Group (NASDAQ: AAL) lost 10% at the open on Thursday after the company reported first-quarter results, and other airline stocks were also hit hard, with United Airlines Holdings (NASDAQ: UAL) and Delta Air Lines (NYSE: DAL) falling 9% and 5%, respectively. The stocks recovered some of those losses as the morning went on, but investors were clearly disappointed by their first read of American's earnings report. American ended the quarter with $6.8 billion in available liquidity and expects to burn through $70 million per day in the current quarter.
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03f37d05-2696-484f-8089-865cbe76c7f1
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5973.0
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2020-04-30 00:00:00 UTC
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Wall Street falls on grim jobless claims data
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AAL
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https://www.nasdaq.com/articles/wall-street-falls-on-grim-jobless-claims-data-2020-04-30
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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.
Facebook jumps after upbeat quarterly revenue
Tesla jumps after reporting profitable quarter
U.S. weekly jobless claims remain elevated
McDonald's dips as quarterly profit slides
Indexes off: Dow 1.05%, S&P 500 0.83%, Nasdaq 0.21%
Adds comments, updates prices throughout
By C Nivedita and Shreyashi Sanyal
April 30 (Reuters) - U.S. stocks fell on Thursday as millions of more Americans applied for jobless claims, taking the shine off a strong rally this month and eclipsing upbeat results from Facebook and Tesla.
All 11 S&P 500 sector indexes were trading lower, with financials .SPSY, materials .SPLRCM and utilities .SPLRCU leading declines.
Dramatic U.S. stimulus and hopes of a revival in business activity as states reopen from lockdowns have powered a Wall Street rally in April, putting the S&P 500 .SPX and Dow Jones index .DJI on course for their best months since 1987.
But investors remain cautious of the pace of the recovery from a looming recession, with economic indicators underlining the extent of the damage already done.
The Labor Department's report showed initial jobless claims totaled 3.84 million for the week ended April 25, a day after data confirmed the biggest contraction for the U.S. economy in the first quarter since the Great Recession.
"The jobless claims figure is a kind of feedback from some of the policy that we've undertaken as a country to fight (the crisis), but hopefully a lot of these jobless folk will come back into the workforce," said Matt Stucky, portfolio manager at Northwestern Mutual Wealth Management in Milwaukee, Wisconsin.
"The timing of when that happens is going to be a function of the road to recovery from the coronavirus."
The Federal Reserve pledged on Wednesday to expand emergency programs to revive growth, but warned the economy could feel the weight of consumer fear and social distancing for a year.
At 11:29 a.m. ET the Dow Jones Industrial Average .DJI was down 259.15 points, or 1.05%, at 24,374.71, the S&P 500 .SPX was down 24.37 points, or 0.83%, at 2,915.14 and the Nasdaq Composite .IXIC was down 18.28 points, or 0.21%, at 8,896.43.
Facebook Inc FB.O jumped 5% after the social media giant posted better-than-expected quarterly revenue.
The pandemic has been less disruptive to tech-related stocks, with Facebook, Apple AAPL.O, Amazon.com AMZN.O, Netflix NFLX.O and Alphabet GOOGL.O,the so-called FAANG group of stocks, gaining between 12% and 25% this month.
Apple and Amazon.com will report results after markets close.
"The SPX price action during this crisis has been led by a handful of 'haves' (mostly the FAANGs) in a world in which most companies are 'have nots'," said Nancy Davis, founder of asset management firm Quadratic Capital Management in Greenwich, Connecticut.
Electric-car maker Tesla Inc TSLA.O climbed 3.1% after posting its third straight quarterly profit, taking investors by surprise as its automaker peers were hit by a slump in consumer demand and factory shutdowns.
McDonald's Corp MCD.N shed 2.4% after it reported a 16.7% slide in quarterly profit as most of its restaurants across the globe limited their services to deliveries and take-aways.
American Airlines AAL.O fell 5% as the airline operator posted its first quarterly loss since emerging from bankruptcy in 2013 and warned of a $70 million a day cash burn.
Declining issues outnumbered advancers for a 2.29-to-1 ratio on the NYSE, nearly matching those on the Nasdaq.
The S&P index recorded two new 52-week highs and no new low, while the Nasdaq recorded 15 new highs and two new lows.
(Reporting by C Nivedita and Shreyashi Sanyal in Bengaluru; Editing by Sagarika Jaisinghani, Anil D'Silva and Arun Koyyur)
((C.Nivedita@thomsonreuters.com; within the U.S. +1 646 223 8780, outside the U.S. +91 80 6182 2626; Twitter: @NivCholayil;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines AAL.O fell 5% as the airline operator posted its first quarterly loss since emerging from bankruptcy in 2013 and warned of a $70 million a day cash burn. Dramatic U.S. stimulus and hopes of a revival in business activity as states reopen from lockdowns have powered a Wall Street rally in April, putting the S&P 500 .SPX and Dow Jones index .DJI on course for their best months since 1987. The Labor Department's report showed initial jobless claims totaled 3.84 million for the week ended April 25, a day after data confirmed the biggest contraction for the U.S. economy in the first quarter since the Great Recession.
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American Airlines AAL.O fell 5% as the airline operator posted its first quarterly loss since emerging from bankruptcy in 2013 and warned of a $70 million a day cash burn. Facebook jumps after upbeat quarterly revenue Tesla jumps after reporting profitable quarter U.S. weekly jobless claims remain elevated McDonald's dips as quarterly profit slides Indexes off: Dow 1.05%, S&P 500 0.83%, Nasdaq 0.21% Adds comments, updates prices throughout By C Nivedita and Shreyashi Sanyal April 30 (Reuters) - U.S. stocks fell on Thursday as millions of more Americans applied for jobless claims, taking the shine off a strong rally this month and eclipsing upbeat results from Facebook and Tesla. The Labor Department's report showed initial jobless claims totaled 3.84 million for the week ended April 25, a day after data confirmed the biggest contraction for the U.S. economy in the first quarter since the Great Recession.
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American Airlines AAL.O fell 5% as the airline operator posted its first quarterly loss since emerging from bankruptcy in 2013 and warned of a $70 million a day cash burn. Facebook jumps after upbeat quarterly revenue Tesla jumps after reporting profitable quarter U.S. weekly jobless claims remain elevated McDonald's dips as quarterly profit slides Indexes off: Dow 1.05%, S&P 500 0.83%, Nasdaq 0.21% Adds comments, updates prices throughout By C Nivedita and Shreyashi Sanyal April 30 (Reuters) - U.S. stocks fell on Thursday as millions of more Americans applied for jobless claims, taking the shine off a strong rally this month and eclipsing upbeat results from Facebook and Tesla. The Labor Department's report showed initial jobless claims totaled 3.84 million for the week ended April 25, a day after data confirmed the biggest contraction for the U.S. economy in the first quarter since the Great Recession.
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American Airlines AAL.O fell 5% as the airline operator posted its first quarterly loss since emerging from bankruptcy in 2013 and warned of a $70 million a day cash burn. Facebook jumps after upbeat quarterly revenue Tesla jumps after reporting profitable quarter U.S. weekly jobless claims remain elevated McDonald's dips as quarterly profit slides Indexes off: Dow 1.05%, S&P 500 0.83%, Nasdaq 0.21% Adds comments, updates prices throughout By C Nivedita and Shreyashi Sanyal April 30 (Reuters) - U.S. stocks fell on Thursday as millions of more Americans applied for jobless claims, taking the shine off a strong rally this month and eclipsing upbeat results from Facebook and Tesla. All 11 S&P 500 sector indexes were trading lower, with financials .SPSY, materials .SPLRCM and utilities .SPLRCU leading declines.
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bbadf3fa-3b9f-4783-ac96-57396555f6ea
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5974.0
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2020-04-30 00:00:00 UTC
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BUZZ-U.S. STOCKS ON THE MOVE-Facebook, Zoom, Twitter
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AAL
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https://www.nasdaq.com/articles/buzz-u.s.-stocks-on-the-move-facebook-zoom-twitter-2020-04-30
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nan
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nan
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Eikon search string for individual stock moves: STXBZ
The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi
The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh
U.S. stocks fell on Thursday as millions of more Americans applied for jobless claims, taking the shine off a strong rally this month and eclipsing upbeat results from Facebook and Tesla. .N
At 12:40 ET, the Dow Jones Industrial Average .DJI was down 1.57% at 24,246.73. The S&P 500 .SPX was down 1.39% at 2,898.67 and the Nasdaq Composite .IXIC was down 0.86% at 8,838.314. The top three S&P 500 .PG.INX percentage gainers: ** ABIOMED Inc ABMD.O, up 16% ** ServiceNow Inc NOW.N, up 6.7% ** Facebook Inc FB.O, up 4.7% The top three S&P 500 .PL.INX percentage losers: ** Textron Inc TXT.N, down 12.2% ** Tapestry Inc TPR.N, down 11.1% ** Molson Coors Beverage Co TAP.N, down 10.9% The top three NYSE .PG.N percentage gainers: ** Direxion Daily S&P 500 High Beta Bull 3X Shares HIBL.N, up 1,200.4% ** VanEck Vectors Unconventional Oil & Gas ETF FRAK.N, up 1,071% ** Kraton Corp KRA.N, up 26.4% The top three NYSE .PL.N percentage losers: ** Chesapeake Energy Inc CHK.N, down 32.3% ** Premise Capital Diversified Tactical ETF TCTL.N, down 21.6% ** GasLog Partners LP GLOP.N, down 21.1 % The top three Nasdaq .PG.O percentage gainers: ** Thermogenes Holdings Inc THMO.O, up 81.4% ** Summer Infant Inc SUMR.O, up 50.2% ** Midatech Pharma Plc MTP.O, up 52.4% The top three Nasdaq .PL.O percentage losers: ** Capricor Therapeutics Inc CAPR.O, down 28.8% ** Verona Pharma Plc VRNA.O, down 25.7% ** Brundage-Bone Concrete Pumping Holdings Inc BBCP.O, down 18.7% ** Marker Therapeutics Inc MRKR.O: up 27.8%
BUZZ-Marker Therapeutics jumps on "orphan drug" tag for blood cancer treatment ** Soligenix Inc SNGX.O: up 6.1%
BUZZ-Soligenix Inc: Rises on positive data from lymphoma drug trial ** McDonald's Corp MCD.N: down 2.1%
BUZZ-McDonald's Corp: Drops after rare profit miss ** Orion Group Holdings Inc ORN.N: up 16.0%
BUZZ-Orion Group: Jumps as Q1 results exceed expectations ** Exterran Corp EXTN.N: up 8.7%
BUZZ-Exterran Corp sees Q1 revenue above estimates, shares rise ** Secoo Holding Ltd SECO.O: up 15.5%
BUZZ-Secoo Holding: Rises as surge in orders boosts Q4 revenue ** Textron Inc TXT.N: down 12.2%
BUZZ-Textron Inc: Falls as virus hits business jet demand ** Molson Coors Beverage Co TAP.N: down 10.9%
BUZZ-Molson Coors: Coronavirus drains beer demand in pubs, bars ** Church & Dwight Co Inc CHD.N: up 3.4%
BUZZ-Church & Dwight: Rises as higher demand for hygiene products lifts revenue ** LKQ Corp LKQ.O: up 1.2%
BUZZ-LKQ Corp: Rises after profit beats estimates ** American Airlines Group Inc AAL.O: down 3.9%
BUZZ-American Airlines Group drops after posting hefty Q1 loss, peers fall ** Trupanion Inc TRUP.O: down 11.3%
BUZZ-Trupanion trips as Zoetis launches Pumpkin pet insurance unit ** Boeing Co BA.N: up 1.0% BUZZ-Boeing: Seen raising as much as $25 bln, says tweet; shares rise ** Tesla Inc TSLA.O: up 2.4% BUZZ-Street View: Tesla's China demand a bright spot amid virus havoc ** Facebook Inc FB.O: up 4.7% BUZZ-Street View: Facebook shows resilience, stability in turbulent times ** Zoom Video Communications Inc ZM.O: down 6.5% BUZZ-Zooming in: Video conference app admits DAU claim was wrong ** ServiceNow Inc NOW.N: up 6.8% BUZZ-ServiceNow Inc: Rises as subscription revenue spike powers Q1 beat ** Twitter Inc TWTR.N: down 7.6%
BUZZ-Twitter: Falls on potential decline in ad sales ** Valaris Plc VAL.N: up 6.5% BUZZ-Valaris: Up on capital structure alternatives, cost cutting plans ** QEP Resources Inc QEP.N: up 30.6% BUZZ-QEP Resources: Surges on higher first-quarter adj. profit, outlook ** NeoGenomics Inc NEO.O: down 9.5% BUZZ-NeoGenomics falls on dual $300 mln stock, convertible debt offerings ** Tapestry Inc TPR.N: down 11.1% BUZZ-Tapestry: Falls as virus-led sales decline prompts quarterly miss ** Dunkin' Brands Group Inc DNKN.O: down 4.1% BUZZ-Dunkin' Brands: Falls on dividend suspension ** Dow Inc DOW.N: down 2.3% BUZZ-Dow Inc: Declines after 6 sessions as oil plunges, lockdowns choke margins ** Callon Petroleum Co CPE.N: up 13.5% ** SM Energy Co SM.N: up 15.8% ** Murphy Oil Corp MUR.N: up 3.4% ** Marathon Oil Corp MRO.N: up 2.4% BUZZ-Oil and gas stocks gain on signs of pick up in fuel demand ** Perrigo Co PRGO.N: down 2.9% BUZZ-Perrigo: Falls as prescription pharma unit sales disappoint
The 11 major S&P 500 sectors:
Communication Services
.SPLRCL
down 0.76%
Consumer Discretionary
.SPLRCD
down 0.77%
Consumer Staples
.SPLRCS
down 0.96%
Energy
.SPNY
down 2.80%
Financial
.SPSY
down 2.78%
Health
.SPXHC
down 0.65%
Industrial
.SPLRCI
down 2.38%
Information Technology
.SPLRCT
down 1.03%
Materials
.SPLRCM
down 2.88%
Real Estate
.SPLRCR
down 2.13%
Utilities
.SPLRCU
down 2.69%
(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: ** ABIOMED Inc ABMD.O, up 16% ** ServiceNow Inc NOW.N, up 6.7% ** Facebook Inc FB.O, up 4.7% The top three S&P 500 .PL.INX percentage losers: ** Textron Inc TXT.N, down 12.2% ** Tapestry Inc TPR.N, down 11.1% ** Molson Coors Beverage Co TAP.N, down 10.9% The top three NYSE .PG.N percentage gainers: ** Direxion Daily S&P 500 High Beta Bull 3X Shares HIBL.N, up 1,200.4% ** VanEck Vectors Unconventional Oil & Gas ETF FRAK.N, up 1,071% ** Kraton Corp KRA.N, up 26.4% The top three NYSE .PL.N percentage losers: ** Chesapeake Energy Inc CHK.N, down 32.3% ** Premise Capital Diversified Tactical ETF TCTL.N, down 21.6% ** GasLog Partners LP GLOP.N, down 21.1 % The top three Nasdaq .PG.O percentage gainers: ** Thermogenes Holdings Inc THMO.O, up 81.4% ** Summer Infant Inc SUMR.O, up 50.2% ** Midatech Pharma Plc MTP.O, up 52.4% The top three Nasdaq .PL.O percentage losers: ** Capricor Therapeutics Inc CAPR.O, down 28.8% ** Verona Pharma Plc VRNA.O, down 25.7% ** Brundage-Bone Concrete Pumping Holdings Inc BBCP.O, down 18.7% ** Marker Therapeutics Inc MRKR.O: up 27.8% BUZZ-Marker Therapeutics jumps on "orphan drug" tag for blood cancer treatment ** Soligenix Inc SNGX.O: up 6.1% BUZZ-Soligenix Inc: Rises on positive data from lymphoma drug trial ** McDonald's Corp MCD.N: down 2.1% BUZZ-McDonald's Corp: Drops after rare profit miss ** Orion Group Holdings Inc ORN.N: up 16.0% BUZZ-Orion Group: Jumps as Q1 results exceed expectations ** Exterran Corp EXTN.N: up 8.7% BUZZ-Exterran Corp sees Q1 revenue above estimates, shares rise ** Secoo Holding Ltd SECO.O: up 15.5% BUZZ-Secoo Holding: Rises as surge in orders boosts Q4 revenue ** Textron Inc TXT.N: down 12.2% BUZZ-Textron Inc: Falls as virus hits business jet demand ** Molson Coors Beverage Co TAP.N: down 10.9% BUZZ-Molson Coors: Coronavirus drains beer demand in pubs, bars ** Church & Dwight Co Inc CHD.N: up 3.4% BUZZ-Church & Dwight: Rises as higher demand for hygiene products lifts revenue ** LKQ Corp LKQ.O: up 1.2% BUZZ-LKQ Corp: Rises after profit beats estimates ** American Airlines Group Inc AAL.O: down 3.9% BUZZ-American Airlines Group drops after posting hefty Q1 loss, peers fall ** Trupanion Inc TRUP.O: down 11.3% BUZZ-Trupanion trips as Zoetis launches Pumpkin pet insurance unit ** Boeing Co BA.N: up 1.0% BUZZ-Boeing: Seen raising as much as $25 bln, says tweet; shares rise ** Tesla Inc TSLA.O: up 2.4% BUZZ-Street View: Tesla's China demand a bright spot amid virus havoc ** Facebook Inc FB.O: up 4.7% BUZZ-Street View: Facebook shows resilience, stability in turbulent times ** Zoom Video Communications Inc ZM.O: down 6.5% BUZZ-Zooming in: Video conference app admits DAU claim was wrong ** ServiceNow Inc NOW.N: up 6.8% BUZZ-ServiceNow Inc: Rises as subscription revenue spike powers Q1 beat ** Twitter Inc TWTR.N: down 7.6% BUZZ-Twitter: Falls on potential decline in ad sales ** Valaris Plc VAL.N: up 6.5% BUZZ-Valaris: Up on capital structure alternatives, cost cutting plans ** QEP Resources Inc QEP.N: up 30.6% BUZZ-QEP Resources: Surges on higher first-quarter adj. 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 fell on Thursday as millions of more Americans applied for jobless claims, taking the shine off a strong rally this month and eclipsing upbeat results from Facebook and Tesla. profit, outlook ** NeoGenomics Inc NEO.O: down 9.5% BUZZ-NeoGenomics falls on dual $300 mln stock, convertible debt offerings ** Tapestry Inc TPR.N: down 11.1% BUZZ-Tapestry: Falls as virus-led sales decline prompts quarterly miss ** Dunkin' Brands Group Inc DNKN.O: down 4.1% BUZZ-Dunkin' Brands: Falls on dividend suspension ** Dow Inc DOW.N: down 2.3% BUZZ-Dow Inc: Declines after 6 sessions as oil plunges, lockdowns choke margins ** Callon Petroleum Co CPE.N: up 13.5% ** SM Energy Co SM.N: up 15.8% ** Murphy Oil Corp MUR.N: up 3.4% ** Marathon Oil Corp MRO.N: up 2.4% BUZZ-Oil and gas stocks gain on signs of pick up in fuel demand ** Perrigo Co PRGO.N: down 2.9% BUZZ-Perrigo: Falls as prescription pharma unit sales disappoint The 11 major S&P 500 sectors: Communication Services
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The top three S&P 500 .PG.INX percentage gainers: ** ABIOMED Inc ABMD.O, up 16% ** ServiceNow Inc NOW.N, up 6.7% ** Facebook Inc FB.O, up 4.7% The top three S&P 500 .PL.INX percentage losers: ** Textron Inc TXT.N, down 12.2% ** Tapestry Inc TPR.N, down 11.1% ** Molson Coors Beverage Co TAP.N, down 10.9% The top three NYSE .PG.N percentage gainers: ** Direxion Daily S&P 500 High Beta Bull 3X Shares HIBL.N, up 1,200.4% ** VanEck Vectors Unconventional Oil & Gas ETF FRAK.N, up 1,071% ** Kraton Corp KRA.N, up 26.4% The top three NYSE .PL.N percentage losers: ** Chesapeake Energy Inc CHK.N, down 32.3% ** Premise Capital Diversified Tactical ETF TCTL.N, down 21.6% ** GasLog Partners LP GLOP.N, down 21.1 % The top three Nasdaq .PG.O percentage gainers: ** Thermogenes Holdings Inc THMO.O, up 81.4% ** Summer Infant Inc SUMR.O, up 50.2% ** Midatech Pharma Plc MTP.O, up 52.4% The top three Nasdaq .PL.O percentage losers: ** Capricor Therapeutics Inc CAPR.O, down 28.8% ** Verona Pharma Plc VRNA.O, down 25.7% ** Brundage-Bone Concrete Pumping Holdings Inc BBCP.O, down 18.7% ** Marker Therapeutics Inc MRKR.O: up 27.8% BUZZ-Marker Therapeutics jumps on "orphan drug" tag for blood cancer treatment ** Soligenix Inc SNGX.O: up 6.1% BUZZ-Soligenix Inc: Rises on positive data from lymphoma drug trial ** McDonald's Corp MCD.N: down 2.1% BUZZ-McDonald's Corp: Drops after rare profit miss ** Orion Group Holdings Inc ORN.N: up 16.0% BUZZ-Orion Group: Jumps as Q1 results exceed expectations ** Exterran Corp EXTN.N: up 8.7% BUZZ-Exterran Corp sees Q1 revenue above estimates, shares rise ** Secoo Holding Ltd SECO.O: up 15.5% BUZZ-Secoo Holding: Rises as surge in orders boosts Q4 revenue ** Textron Inc TXT.N: down 12.2% BUZZ-Textron Inc: Falls as virus hits business jet demand ** Molson Coors Beverage Co TAP.N: down 10.9% BUZZ-Molson Coors: Coronavirus drains beer demand in pubs, bars ** Church & Dwight Co Inc CHD.N: up 3.4% BUZZ-Church & Dwight: Rises as higher demand for hygiene products lifts revenue ** LKQ Corp LKQ.O: up 1.2% BUZZ-LKQ Corp: Rises after profit beats estimates ** American Airlines Group Inc AAL.O: down 3.9% BUZZ-American Airlines Group drops after posting hefty Q1 loss, peers fall ** Trupanion Inc TRUP.O: down 11.3% BUZZ-Trupanion trips as Zoetis launches Pumpkin pet insurance unit ** Boeing Co BA.N: up 1.0% BUZZ-Boeing: Seen raising as much as $25 bln, says tweet; shares rise ** Tesla Inc TSLA.O: up 2.4% BUZZ-Street View: Tesla's China demand a bright spot amid virus havoc ** Facebook Inc FB.O: up 4.7% BUZZ-Street View: Facebook shows resilience, stability in turbulent times ** Zoom Video Communications Inc ZM.O: down 6.5% BUZZ-Zooming in: Video conference app admits DAU claim was wrong ** ServiceNow Inc NOW.N: up 6.8% BUZZ-ServiceNow Inc: Rises as subscription revenue spike powers Q1 beat ** Twitter Inc TWTR.N: down 7.6% BUZZ-Twitter: Falls on potential decline in ad sales ** Valaris Plc VAL.N: up 6.5% BUZZ-Valaris: Up on capital structure alternatives, cost cutting plans ** QEP Resources Inc QEP.N: up 30.6% BUZZ-QEP Resources: Surges on higher first-quarter adj. 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 fell on Thursday as millions of more Americans applied for jobless claims, taking the shine off a strong rally this month and eclipsing upbeat results from Facebook and Tesla. profit, outlook ** NeoGenomics Inc NEO.O: down 9.5% BUZZ-NeoGenomics falls on dual $300 mln stock, convertible debt offerings ** Tapestry Inc TPR.N: down 11.1% BUZZ-Tapestry: Falls as virus-led sales decline prompts quarterly miss ** Dunkin' Brands Group Inc DNKN.O: down 4.1% BUZZ-Dunkin' Brands: Falls on dividend suspension ** Dow Inc DOW.N: down 2.3% BUZZ-Dow Inc: Declines after 6 sessions as oil plunges, lockdowns choke margins ** Callon Petroleum Co CPE.N: up 13.5% ** SM Energy Co SM.N: up 15.8% ** Murphy Oil Corp MUR.N: up 3.4% ** Marathon Oil Corp MRO.N: up 2.4% BUZZ-Oil and gas stocks gain on signs of pick up in fuel demand ** Perrigo Co PRGO.N: down 2.9% BUZZ-Perrigo: Falls as prescription pharma unit sales disappoint The 11 major S&P 500 sectors: Communication Services
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The top three S&P 500 .PG.INX percentage gainers: ** ABIOMED Inc ABMD.O, up 16% ** ServiceNow Inc NOW.N, up 6.7% ** Facebook Inc FB.O, up 4.7% The top three S&P 500 .PL.INX percentage losers: ** Textron Inc TXT.N, down 12.2% ** Tapestry Inc TPR.N, down 11.1% ** Molson Coors Beverage Co TAP.N, down 10.9% The top three NYSE .PG.N percentage gainers: ** Direxion Daily S&P 500 High Beta Bull 3X Shares HIBL.N, up 1,200.4% ** VanEck Vectors Unconventional Oil & Gas ETF FRAK.N, up 1,071% ** Kraton Corp KRA.N, up 26.4% The top three NYSE .PL.N percentage losers: ** Chesapeake Energy Inc CHK.N, down 32.3% ** Premise Capital Diversified Tactical ETF TCTL.N, down 21.6% ** GasLog Partners LP GLOP.N, down 21.1 % The top three Nasdaq .PG.O percentage gainers: ** Thermogenes Holdings Inc THMO.O, up 81.4% ** Summer Infant Inc SUMR.O, up 50.2% ** Midatech Pharma Plc MTP.O, up 52.4% The top three Nasdaq .PL.O percentage losers: ** Capricor Therapeutics Inc CAPR.O, down 28.8% ** Verona Pharma Plc VRNA.O, down 25.7% ** Brundage-Bone Concrete Pumping Holdings Inc BBCP.O, down 18.7% ** Marker Therapeutics Inc MRKR.O: up 27.8% BUZZ-Marker Therapeutics jumps on "orphan drug" tag for blood cancer treatment ** Soligenix Inc SNGX.O: up 6.1% BUZZ-Soligenix Inc: Rises on positive data from lymphoma drug trial ** McDonald's Corp MCD.N: down 2.1% BUZZ-McDonald's Corp: Drops after rare profit miss ** Orion Group Holdings Inc ORN.N: up 16.0% BUZZ-Orion Group: Jumps as Q1 results exceed expectations ** Exterran Corp EXTN.N: up 8.7% BUZZ-Exterran Corp sees Q1 revenue above estimates, shares rise ** Secoo Holding Ltd SECO.O: up 15.5% BUZZ-Secoo Holding: Rises as surge in orders boosts Q4 revenue ** Textron Inc TXT.N: down 12.2% BUZZ-Textron Inc: Falls as virus hits business jet demand ** Molson Coors Beverage Co TAP.N: down 10.9% BUZZ-Molson Coors: Coronavirus drains beer demand in pubs, bars ** Church & Dwight Co Inc CHD.N: up 3.4% BUZZ-Church & Dwight: Rises as higher demand for hygiene products lifts revenue ** LKQ Corp LKQ.O: up 1.2% BUZZ-LKQ Corp: Rises after profit beats estimates ** American Airlines Group Inc AAL.O: down 3.9% BUZZ-American Airlines Group drops after posting hefty Q1 loss, peers fall ** Trupanion Inc TRUP.O: down 11.3% BUZZ-Trupanion trips as Zoetis launches Pumpkin pet insurance unit ** Boeing Co BA.N: up 1.0% BUZZ-Boeing: Seen raising as much as $25 bln, says tweet; shares rise ** Tesla Inc TSLA.O: up 2.4% BUZZ-Street View: Tesla's China demand a bright spot amid virus havoc ** Facebook Inc FB.O: up 4.7% BUZZ-Street View: Facebook shows resilience, stability in turbulent times ** Zoom Video Communications Inc ZM.O: down 6.5% BUZZ-Zooming in: Video conference app admits DAU claim was wrong ** ServiceNow Inc NOW.N: up 6.8% BUZZ-ServiceNow Inc: Rises as subscription revenue spike powers Q1 beat ** Twitter Inc TWTR.N: down 7.6% BUZZ-Twitter: Falls on potential decline in ad sales ** Valaris Plc VAL.N: up 6.5% BUZZ-Valaris: Up on capital structure alternatives, cost cutting plans ** QEP Resources Inc QEP.N: up 30.6% BUZZ-QEP Resources: Surges on higher first-quarter adj. profit, outlook ** NeoGenomics Inc NEO.O: down 9.5% BUZZ-NeoGenomics falls on dual $300 mln stock, convertible debt offerings ** Tapestry Inc TPR.N: down 11.1% BUZZ-Tapestry: Falls as virus-led sales decline prompts quarterly miss ** Dunkin' Brands Group Inc DNKN.O: down 4.1% BUZZ-Dunkin' Brands: Falls on dividend suspension ** Dow Inc DOW.N: down 2.3% BUZZ-Dow Inc: Declines after 6 sessions as oil plunges, lockdowns choke margins ** Callon Petroleum Co CPE.N: up 13.5% ** SM Energy Co SM.N: up 15.8% ** Murphy Oil Corp MUR.N: up 3.4% ** Marathon Oil Corp MRO.N: up 2.4% BUZZ-Oil and gas stocks gain on signs of pick up in fuel demand ** Perrigo Co PRGO.N: down 2.9% BUZZ-Perrigo: Falls as prescription pharma unit sales disappoint The 11 major S&P 500 sectors: Communication Services down 0.77% Consumer Staples
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The top three S&P 500 .PG.INX percentage gainers: ** ABIOMED Inc ABMD.O, up 16% ** ServiceNow Inc NOW.N, up 6.7% ** Facebook Inc FB.O, up 4.7% The top three S&P 500 .PL.INX percentage losers: ** Textron Inc TXT.N, down 12.2% ** Tapestry Inc TPR.N, down 11.1% ** Molson Coors Beverage Co TAP.N, down 10.9% The top three NYSE .PG.N percentage gainers: ** Direxion Daily S&P 500 High Beta Bull 3X Shares HIBL.N, up 1,200.4% ** VanEck Vectors Unconventional Oil & Gas ETF FRAK.N, up 1,071% ** Kraton Corp KRA.N, up 26.4% The top three NYSE .PL.N percentage losers: ** Chesapeake Energy Inc CHK.N, down 32.3% ** Premise Capital Diversified Tactical ETF TCTL.N, down 21.6% ** GasLog Partners LP GLOP.N, down 21.1 % The top three Nasdaq .PG.O percentage gainers: ** Thermogenes Holdings Inc THMO.O, up 81.4% ** Summer Infant Inc SUMR.O, up 50.2% ** Midatech Pharma Plc MTP.O, up 52.4% The top three Nasdaq .PL.O percentage losers: ** Capricor Therapeutics Inc CAPR.O, down 28.8% ** Verona Pharma Plc VRNA.O, down 25.7% ** Brundage-Bone Concrete Pumping Holdings Inc BBCP.O, down 18.7% ** Marker Therapeutics Inc MRKR.O: up 27.8% BUZZ-Marker Therapeutics jumps on "orphan drug" tag for blood cancer treatment ** Soligenix Inc SNGX.O: up 6.1% BUZZ-Soligenix Inc: Rises on positive data from lymphoma drug trial ** McDonald's Corp MCD.N: down 2.1% BUZZ-McDonald's Corp: Drops after rare profit miss ** Orion Group Holdings Inc ORN.N: up 16.0% BUZZ-Orion Group: Jumps as Q1 results exceed expectations ** Exterran Corp EXTN.N: up 8.7% BUZZ-Exterran Corp sees Q1 revenue above estimates, shares rise ** Secoo Holding Ltd SECO.O: up 15.5% BUZZ-Secoo Holding: Rises as surge in orders boosts Q4 revenue ** Textron Inc TXT.N: down 12.2% BUZZ-Textron Inc: Falls as virus hits business jet demand ** Molson Coors Beverage Co TAP.N: down 10.9% BUZZ-Molson Coors: Coronavirus drains beer demand in pubs, bars ** Church & Dwight Co Inc CHD.N: up 3.4% BUZZ-Church & Dwight: Rises as higher demand for hygiene products lifts revenue ** LKQ Corp LKQ.O: up 1.2% BUZZ-LKQ Corp: Rises after profit beats estimates ** American Airlines Group Inc AAL.O: down 3.9% BUZZ-American Airlines Group drops after posting hefty Q1 loss, peers fall ** Trupanion Inc TRUP.O: down 11.3% BUZZ-Trupanion trips as Zoetis launches Pumpkin pet insurance unit ** Boeing Co BA.N: up 1.0% BUZZ-Boeing: Seen raising as much as $25 bln, says tweet; shares rise ** Tesla Inc TSLA.O: up 2.4% BUZZ-Street View: Tesla's China demand a bright spot amid virus havoc ** Facebook Inc FB.O: up 4.7% BUZZ-Street View: Facebook shows resilience, stability in turbulent times ** Zoom Video Communications Inc ZM.O: down 6.5% BUZZ-Zooming in: Video conference app admits DAU claim was wrong ** ServiceNow Inc NOW.N: up 6.8% BUZZ-ServiceNow Inc: Rises as subscription revenue spike powers Q1 beat ** Twitter Inc TWTR.N: down 7.6% BUZZ-Twitter: Falls on potential decline in ad sales ** Valaris Plc VAL.N: up 6.5% BUZZ-Valaris: Up on capital structure alternatives, cost cutting plans ** QEP Resources Inc QEP.N: up 30.6% BUZZ-QEP Resources: Surges on higher first-quarter adj. 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 fell on Thursday as millions of more Americans applied for jobless claims, taking the shine off a strong rally this month and eclipsing upbeat results from Facebook and Tesla. .N At 12:40 ET, the Dow Jones Industrial Average .DJI was down 1.57% at 24,246.73.
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b727a191-148c-407d-8132-0a789444f99a
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5975.0
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2020-04-30 00:00:00 UTC
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Consumer Sector Update for 04/30/2020: K,TSLA,AAL,MCD
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AAL
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https://www.nasdaq.com/articles/consumer-sector-update-for-04-30-2020%3A-ktslaaalmcd-2020-04-30
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nan
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nan
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Consumer stocks were mostly lower, with McDonalds (MCD) sinking more than 2% after earlier reporting Q1 earnings trailing Wall Street expectations and the fast-food giant saying the COVID-19 pandemic was causing "dramatic changes" in consumer behavior.
At last look, the SPDR Consumer Staples Select Sector ETF was down 0.9% this afternoon while the SPDR Consumer Discretionary Select Sector ETF was slipping 1.4%. The sectors also were responding to new data showing a 7.5% plunge in consumer spending during March, though excluding food and fuel costs, the decline was just 0.1%.
In company news, Kellogg (K) gained 1.8% after posting Q1 financial results beating analyst estimates. Excluding one-time items, the breakfast cereal company earned $0.99 per share on $3.41 billion in sales while analysts, on average, had been expecting a non-GAAP profit of $0.95 per share and $3.4 billion in revenue. The company also kept its FY20 guidance projecting a 1% to 2% increase in organic net sales this year.
Tesla (TSLA) climbed 2% after late Wednesday reporting a surprise Q1 profit and a 32% year-over-year increase in revenue, also topping analyst forecasts. The electric carmaker produced 102,672 vehicles during the three months ended March 31, up 33% over the year-ago period, while deliveries grew 40% to 88,496 vehicles.
American Airlines (AAL) dropped 4.1% after reporting a wider-than-expected Q1 net loss and revenue trailing analyst forecasts. Excluding one-time items, the carrier lost $2.65 per share, reversing an adjusted $0.52 per share profit during the year-earlier period, while revenue fell to $8.52 billion compared with $10.58 billion last year. The Street had been looking for a non-GAAP loss of $2.36 per share on $9.01 billion in revenue.
The views and 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) dropped 4.1% after reporting a wider-than-expected Q1 net loss and revenue trailing analyst forecasts. The sectors also were responding to new data showing a 7.5% plunge in consumer spending during March, though excluding food and fuel costs, the decline was just 0.1%. Tesla (TSLA) climbed 2% after late Wednesday reporting a surprise Q1 profit and a 32% year-over-year increase in revenue, also topping analyst forecasts.
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American Airlines (AAL) dropped 4.1% after reporting a wider-than-expected Q1 net loss and revenue trailing analyst forecasts. Consumer stocks were mostly lower, with McDonalds (MCD) sinking more than 2% after earlier reporting Q1 earnings trailing Wall Street expectations and the fast-food giant saying the COVID-19 pandemic was causing "dramatic changes" in consumer behavior. Excluding one-time items, the breakfast cereal company earned $0.99 per share on $3.41 billion in sales while analysts, on average, had been expecting a non-GAAP profit of $0.95 per share and $3.4 billion in revenue.
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American Airlines (AAL) dropped 4.1% after reporting a wider-than-expected Q1 net loss and revenue trailing analyst forecasts. At last look, the SPDR Consumer Staples Select Sector ETF was down 0.9% this afternoon while the SPDR Consumer Discretionary Select Sector ETF was slipping 1.4%. Excluding one-time items, the breakfast cereal company earned $0.99 per share on $3.41 billion in sales while analysts, on average, had been expecting a non-GAAP profit of $0.95 per share and $3.4 billion in revenue.
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American Airlines (AAL) dropped 4.1% after reporting a wider-than-expected Q1 net loss and revenue trailing analyst forecasts. Excluding one-time items, the breakfast cereal company earned $0.99 per share on $3.41 billion in sales while analysts, on average, had been expecting a non-GAAP profit of $0.95 per share and $3.4 billion in revenue. The Street had been looking for a non-GAAP loss of $2.36 per share on $9.01 billion in revenue.
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58995354-ce89-4725-8bb8-4fce15c6a0e9
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5976.0
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2020-04-30 00:00:00 UTC
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Stocks End Record Month on a Low Note
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AAL
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https://www.nasdaq.com/articles/stocks-end-record-month-on-a-low-note-2020-04-30
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nan
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nan
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Stocks’ recent rally was interrupted on Thursday as grim data from North America and Europe outweighed recent economic optimism.
U.S. government figures showed that 3.8 million people filed initial claims for unemployment benefits in the latest week, bringing the total newly out of work since the coronavirus struck the U.S. economy to more than 30 million. A separate report showed that consumer spending fell 7.5% in March from a month earlier—the biggest monthly drop on record—as many consumers held back on all but essential purchases.
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At the same time, Christine Lagarde, head of the European Central Bank, said the economy in the eurozone could shrink by 5% to 12% this year, depending on how long lockdown efforts to contain the pandemic remain in place. Eurozone GDP already dropped 3.8% in the first quarter, separate data on Thursday showed. The ECB said it would lower interest rates on existing loans to banks and offer new long-term loans, but opted not to scale up a bond-buying initiative called the Pandemic Emergency Purchase Program. Investors were disappointed, having hoped the size of the program would be increased.
Stocks on both sides of the Atlantic fell on Thursday, after several days of strong gains. The Dow Jones Industrial Average closed down 288 points, or 1.2%, while the S&P 500 fell 0.9% and the Nasdaq Composite lost 0.3%. The economically sensitive small-cap Russell 2000 index dropped 3.2% after leading the market higher in recent days.
The Russell handily bested the large-cap indexes in April, returning over 18% versus 12.5% for the Dow and less than 14% for the S&P 500. Still, the gain for the Dow was its largest for the month of April since 1938.
In Europe, the Stoxx Europe 600 index closed down 2% Thursday, while the German DAX lost 2.2%, the French CAC 40 declined 2.1%, and the U.K.’s FTSE 100 index dropped 3.5%. Beleaguered European banks were especially hard hit by the ECB’s Thursday announcement: The Euro Stoxx Bank Index fell another 5.5% after already having lost nearly half its value since February.
Stock indexes in Asia closed the month with gains: Japan’s Nikkei 225 added 2.1% and China’s Shanghai Composite rose 1.3%.
Haven assets ended mixed on Thursday. The price of gold fell 1.1% to $1,695.40 an ounce. The yield on the 10-year U.S. Treasury note ticked down less than 1 basis point, or hundredth of a percentage point, to 0.622%, as the price of the securities rose. The U.S. Dollar Index (DXY)—which measures the greenback against a basket of other currencies—slipped 0.6%.
Oil, which has swung wildly in recent weeks, was up on some signs of increased demand. The price of WTI crude climbed 25.1% to $18.84 a barrel, while Brent rose 12.1%, changing hands at $25.27 a barrel.
Investors have had a flood of earnings data to digest this week as public companies disclosed first-quarter results and how the pandemic has affected their business. Several stocks were moving on earnings results released after Wednesday’s close and before the bell Thursday.
Facebook (FB) shares jumped 5.4% despite results missing slightly on the bottom line. The social media giant said its monthly active users are up and, despite a drop in advertising revenue in March, April levels were roughly flat compared with last year.
Tesla (TSLA) shares gave up a large early gain to close down 2.3% after posting surprise profits of $1.24 a share on an adjusted basis while analysts were expecting a loss. On a call with analysts, fiery chief executive Elon Musk criticized the stay-at-home orders, calling them “fascist.”
American Airlines (AAL) shares fell 4.9% after the airline reported a $2.2 billion loss in the first quarter—its highest loss since the financial crisis of 2008. With much travel largely halted, American Airlines admitted the industry has never before faced such a “significant challenge.”
Tapestry (TPR) shares dropped 13.1% as more than 90% of its stores were either closed or had shortened hours due to the pandemic. The company behind brands such as Coach and Kate Spade reported a loss of $2.45 a share as sales tumbled nearly 20%.
Write to Nicholas Jasinski at nicholas.jasinski@barrons.com and Carleton English at carleton.english@dowjones.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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On a call with analysts, fiery chief executive Elon Musk criticized the stay-at-home orders, calling them “fascist.” American Airlines (AAL) shares fell 4.9% after the airline reported a $2.2 billion loss in the first quarter—its highest loss since the financial crisis of 2008. Exploring Financial Retaliation Against China: Report At the same time, Christine Lagarde, head of the European Central Bank, said the economy in the eurozone could shrink by 5% to 12% this year, depending on how long lockdown efforts to contain the pandemic remain in place. The social media giant said its monthly active users are up and, despite a drop in advertising revenue in March, April levels were roughly flat compared with last year.
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On a call with analysts, fiery chief executive Elon Musk criticized the stay-at-home orders, calling them “fascist.” American Airlines (AAL) shares fell 4.9% after the airline reported a $2.2 billion loss in the first quarter—its highest loss since the financial crisis of 2008. A separate report showed that consumer spending fell 7.5% in March from a month earlier—the biggest monthly drop on record—as many consumers held back on all but essential purchases. In Europe, the Stoxx Europe 600 index closed down 2% Thursday, while the German DAX lost 2.2%, the French CAC 40 declined 2.1%, and the U.K.’s FTSE 100 index dropped 3.5%.
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On a call with analysts, fiery chief executive Elon Musk criticized the stay-at-home orders, calling them “fascist.” American Airlines (AAL) shares fell 4.9% after the airline reported a $2.2 billion loss in the first quarter—its highest loss since the financial crisis of 2008. In Europe, the Stoxx Europe 600 index closed down 2% Thursday, while the German DAX lost 2.2%, the French CAC 40 declined 2.1%, and the U.K.’s FTSE 100 index dropped 3.5%. Beleaguered European banks were especially hard hit by the ECB’s Thursday announcement: The Euro Stoxx Bank Index fell another 5.5% after already having lost nearly half its value since February.
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On a call with analysts, fiery chief executive Elon Musk criticized the stay-at-home orders, calling them “fascist.” American Airlines (AAL) shares fell 4.9% after the airline reported a $2.2 billion loss in the first quarter—its highest loss since the financial crisis of 2008. Stocks’ recent rally was interrupted on Thursday as grim data from North America and Europe outweighed recent economic optimism. Still, the gain for the Dow was its largest for the month of April since 1938.
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20a785f9-57df-40f6-b310-df2f6c2753fe
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5977.0
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2020-04-30 00:00:00 UTC
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Stock Market Wrap-Up: Big Investors Are Betting on Airlines. Should You?
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AAL
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https://www.nasdaq.com/articles/stock-market-wrap-up%3A-big-investors-are-betting-on-airlines.-should-you-2020-04-30
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nan
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nan
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The stock market gave up ground on Thursday, but that wasn't enough to take away from what was an amazingly positive month for stocks in April. Even with the day's declines, the Dow Jones Industrial Average (DJINDICES: ^DJI) finished the month with a gain of more than 2,400 points, or 11%. The S&P 500 (SNPINDEX: ^GSPC) and Nasdaq Composite (NASDAQINDEX: ^IXIC) posted even larger gains of 13% and 15%, respectively, reflecting the optimism that investors have adopted by looking at the market's future.
Today's stock market
INDEX
PERCENTAGE CHANGE
POINT CHANGE
Dow
(1.17%)
(288)
S&P 500
(0.92%)
(27)
Nasdaq Composite
(0.28%)
(25)
Data source: Yahoo! Finance.
Airlines, in general, saw even bigger losses today than the broader market. Yet they've continued to draw interest from investors, and that's helped them raise capital that might prove crucial in weathering the difficult conditions they'll likely face for months to come.
What investors are buying
Today's performance for airlines was generally poor. Major players Delta Air Lines (NYSE: DAL), American Airlines Group (NASDAQ: AAL), and United Airlines Holdings (NASDAQ: UAL) all posted 5% losses on the day. JetBlue Airways (NASDAQ: JBLU) and Alaska Air Group (NYSE: ALK) took 4% hits. Only Southwest Airlines (NYSE: LUV) managed to gain ground, picking up 1% on the day.
However, we've continued to see interest from institutional investors trying to pick up good deals in working with airlines. Today, Delta raised $3.5 billion from selling five-year notes, more than doubling the initial size of the offering from $1.5 billion. Participants in the private offering were happy to buy the secured notes, which don't offer any equity conversion rights but do include collateral in the form of various route slots, airport leases, and international flight-operation rights. An interest rate of 7% was certainly an enticing kicker for bond investors.
Image source: Delta Air Lines.
Delta's experience follows Southwest's move earlier this week to raise capital on its own. Southwest also boosted the size of its offerings, ending up raising $4 billion. Half of the money came from a secondary stock offering, while the other $2 billion came from convertible five-year notes paying 1.25% and offering conversion at a price about 35% higher than the stock price.
Cash has never been more important
The need for liquidity is obvious, and American made it even clearer with its quarterly results. The airline posted a first-quarter loss of $2.2 billion and says it's burning about $70 million on cash every day so far in the second quarter because of the near-standstill in travel activity. CEO Doug Parker warned that investors shouldn't expect a V-shaped recovery for airlines, saying that, "[R]ecovery will be slow, and demand for air travel will be suppressed for quite some time."
Not all airlines should expect equal treatment from institutional investors. Delta has a strong reputation among business travelers, while Southwest has cost advantages and doesn't have the same exposure to international travel that its big-airline peers have. By contrast, American and United face some unique challenges that could make it more difficult for them to raise further capital on favorable terms.
At this point, it's still unclear when airline stocks will see industry conditions return to something resembling normal. It's good that investors are still willing to put money into the sector, but the businesses still have to perform better before too long or else further liquidity could dry up quickly. If you're looking at buying shares of airlines, you have to be comfortable with all that risk -- and also be willing to accept the fact that institutions can get access to types of investments that you might not be able to buy.
10 stocks we like better than Southwest Airlines
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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
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 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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Major players Delta Air Lines (NYSE: DAL), American Airlines Group (NASDAQ: AAL), and United Airlines Holdings (NASDAQ: UAL) all posted 5% losses on the day. The S&P 500 (SNPINDEX: ^GSPC) and Nasdaq Composite (NASDAQINDEX: ^IXIC) posted even larger gains of 13% and 15%, respectively, reflecting the optimism that investors have adopted by looking at the market's future. Yet they've continued to draw interest from investors, and that's helped them raise capital that might prove crucial in weathering the difficult conditions they'll likely face for months to come.
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Major players Delta Air Lines (NYSE: DAL), American Airlines Group (NASDAQ: AAL), and United Airlines Holdings (NASDAQ: UAL) all posted 5% losses on the day. The Motley Fool owns shares of and recommends Delta Air Lines and Southwest Airlines. The Motley Fool recommends Alaska Air Group and JetBlue Airways.
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Major players Delta Air Lines (NYSE: DAL), American Airlines Group (NASDAQ: AAL), and United Airlines Holdings (NASDAQ: UAL) all posted 5% losses on the day. 10 stocks we like better than Southwest Airlines 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 Southwest Airlines wasn't one of them!
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Major players Delta Air Lines (NYSE: DAL), American Airlines Group (NASDAQ: AAL), and United Airlines Holdings (NASDAQ: UAL) all posted 5% losses on the day. Today's stock market That's right -- they think these 10 stocks are even better buys.
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d45f26e9-99fb-454d-8f28-e4dbfec5e8ce
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5978.0
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2020-04-30 00:00:00 UTC
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Wall St caps best month in decades with broad sell-off
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AAL
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https://www.nasdaq.com/articles/wall-st-caps-best-month-in-decades-with-broad-sell-off-2020-04-30-0
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nan
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nan
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By Stephen Culp
NEW YORK, April 30 (Reuters) - U.S. stocks lost ground on Thursday as grim economic data and mixed earnings prompted investors to take profits at the close of the S&P 500's best month in 33 years, a remarkable run driven by expectations the economy will soon start recovering from crushing restrictions enacted to curb the coronavirus pandemic.
While risk-off selling pulled all three major U.S. stock averages into the red, the S&P 500 and the Dow posted their largest monthly percentage gains since January 1987, with the Nasdaq having its best month since June 2000.
The three indexes remain well within 20% of record highs reached in February, having quickly rebounded since shutdown efforts to curb the spread of the coronavirus pandemic brought the economy to a grinding halt.
The five-week tally of unemployment claims topped 30 million and consumer spending has plummeted, according to the latest round of dismal indicators providing another snapshot of the crushing economic effects of the widespread shutdown.
"We've had a tremendous run but we've had the worst economic data since the Great Depression," said Paul Nolte, portfolio manager at Kingsview Asset Management in Chicago. "Business and earnings might not be snapping back as quickly as the v-shaped recovery on Wall Street would imply."
The Federal Reserved announced that it would broaden its "Main Street Lending Program" by lowering the minimum loan size and expanding eligibility.
"Wall Street is liking all the programs that the government and the Fed are putting together," Nolte added. "So Wall Street is doing fine but Main Street is going to be a longer process."
The Dow Jones Industrial Average .DJI fell 288.14 points, or 1.17%, to 24,345.72, the S&P 500 .SPX lost 27.08 points, or 0.92%, to 2,912.43 and the Nasdaq Composite .IXIC dropped 25.16 points, or 0.28%, to 8,889.55.
Of the 11 major sectors in the S&P 500, all but consumer discretionary .SPLRCD and communications services .SPLRCL closed in negative territory, with materials .SPLRCM and financials .SPSY suffering the largest percentage losses.
Earnings season continues apace, with 236 of the companies in the S&P 500 having reported quarterly results. Of those, two-thirds have surprised consensus estimates to the upside, according to Refinitiv data.
But there have been 90 negative pre-announcements in the first quarter, compared with 40 positive, and analysts see aggregate S&P 500 earnings dropping by a year-on-year rate of 14.4% in the first three months of 2020, per Refinitiv.
Market leaders Apple Inc AAPL.O and Amazon.com AMZN.O reported results after the closing bell. In post-market trading, Apple shares gained more than 2% while Amazon.com was down over 5%.
Facebook Inc FB.O climbed 5.2% after the social media company reported better-than-expected quarterly revenue.
American Airlines AAL.O posted its first quarterly loss since emerging from bankruptcy in 2013, sending its shares down 4.9%.
Declining issues outnumbered advancing ones on the NYSE by a 2.58-to-1 ratio; on Nasdaq, a 2.81-to-1 ratio favored decliners.
The S&P 500 posted three new 52-week highs and one new low; the Nasdaq Composite recorded 25 new highs and four new lows.
Volume on U.S. exchanges was 12.80 billion shares, compared with the 12.3 billion average over the last 20 trading days.
(Reporting by Stephen Culp; Editing by Tom Brown)
((stephen.culp@thomsonreuters.com; 646-223-6076;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines AAL.O posted its first quarterly loss since emerging from bankruptcy in 2013, sending its shares down 4.9%. By Stephen Culp NEW YORK, April 30 (Reuters) - U.S. stocks lost ground on Thursday as grim economic data and mixed earnings prompted investors to take profits at the close of the S&P 500's best month in 33 years, a remarkable run driven by expectations the economy will soon start recovering from crushing restrictions enacted to curb the coronavirus pandemic. The three indexes remain well within 20% of record highs reached in February, having quickly rebounded since shutdown efforts to curb the spread of the coronavirus pandemic brought the economy to a grinding halt.
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American Airlines AAL.O posted its first quarterly loss since emerging from bankruptcy in 2013, sending its shares down 4.9%. While risk-off selling pulled all three major U.S. stock averages into the red, the S&P 500 and the Dow posted their largest monthly percentage gains since January 1987, with the Nasdaq having its best month since June 2000. The Dow Jones Industrial Average .DJI fell 288.14 points, or 1.17%, to 24,345.72, the S&P 500 .SPX lost 27.08 points, or 0.92%, to 2,912.43 and the Nasdaq Composite .IXIC dropped 25.16 points, or 0.28%, to 8,889.55.
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American Airlines AAL.O posted its first quarterly loss since emerging from bankruptcy in 2013, sending its shares down 4.9%. By Stephen Culp NEW YORK, April 30 (Reuters) - U.S. stocks lost ground on Thursday as grim economic data and mixed earnings prompted investors to take profits at the close of the S&P 500's best month in 33 years, a remarkable run driven by expectations the economy will soon start recovering from crushing restrictions enacted to curb the coronavirus pandemic. While risk-off selling pulled all three major U.S. stock averages into the red, the S&P 500 and the Dow posted their largest monthly percentage gains since January 1987, with the Nasdaq having its best month since June 2000.
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American Airlines AAL.O posted its first quarterly loss since emerging from bankruptcy in 2013, sending its shares down 4.9%. While risk-off selling pulled all three major U.S. stock averages into the red, the S&P 500 and the Dow posted their largest monthly percentage gains since January 1987, with the Nasdaq having its best month since June 2000. Earnings season continues apace, with 236 of the companies in the S&P 500 having reported quarterly results.
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85f8a35c-1d54-4f80-834e-f3897d01d4ad
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5979.0
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2020-04-30 00:00:00 UTC
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The Dow Fell 288 Points, but Marked the Biggest Monthly Gain in Decades
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AAL
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https://www.nasdaq.com/articles/the-dow-fell-288-points-but-marked-the-biggest-monthly-gain-in-decades-2020-04-30
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nan
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nan
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U.S. stocks dropped on Thursday as the latest economic data continue to suggest weakness and headwinds. The Dow Jones Industrial Average lost 288.14 points, or 1.17%, to close at 24,345.72. The S&P 500 fell 27.08 points, or 0.93%, to end at 2912.43, and the Nasdaq Composite slid 25.16 points, or 0.28%, to close at 8889.55.
As stocks rallied in April from lows set in late March, both the S&P 500 and the Dow have posted the largest one-month percentage gain since January 1987, 12.88% and 11.08%, respectively.
Some of the biggest movers Thursday were driven by first-quarter-earnings reports, which offer examples of how American corporations were affected by the coronavirus pandemic. Facebook stock (ticker: FB) jumped 5.4%, Tesla stock (TSLA) fell 2.3%, and American Airlines Group stock (AAL) fell 4.9%.
An additional 3.8 million Americans filed for unemployment benefits last week, the Labor Department said Thursday. The number is down from the previous week’s 4.4 million, but still high based on past data. The latest number means that at least 30 million people have been put out of work as the coronavirus pandemic ravages the economy, suggesting that about one in five workers has been laid off in recent weeks.
The Bureau of Economic Analysis also said on Thursday that consumer spending—the key driver of the American economy—fell by 7.5% in March, marking the steepest monthly decline in records tracing back to 1959. Still, as with many economic indicators, the March reading shows only an initial view of the damage done by the coronavirus pandemic, as state lockdowns and large-scale business disruptions did not begin until the middle of the month. April’s numbers will offer a much clearer view of how the lockdowns—and job losses—have impacted Americans’ spending behavior.
https://asset.barrons.com/dj-mg/dice/barrons-staffpicks-2d590600-c862-4394-b9d3-66b48c376d60/inset.json
Following the conclusion of its April meeting yesterday, the Federal Reserve opened a new lending facility to buy loans from larger businesses, and those with relatively high debt levels—up to six times last year’s earnings before interest, tax, depreciation, and amortization, or Ebitda. Together with the other two lending facilities announced last month, the three programs will have a maximum size of $600 billion in loan purchasing.
Across the Atlantic, the European Central Bank kept its key official interest rate steady at minus 0.5% on Thursday. The ECB announced a new refinancing operation and eased the terms of its targeted lending program to make sure European banks would keep lending to businesses and consumers throughout the region.
ECB President Christine Lagarde said the eurozone’s gross domestic product could shrink between 5% and 12% this year under a coronavirus-induced recession, and reiterated that the central bank was “fully prepared” to increase the massive bond-buying program it announced last month.
Write to Evie Liu at evie.liu@barrons.com
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Facebook stock (ticker: FB) jumped 5.4%, Tesla stock (TSLA) fell 2.3%, and American Airlines Group stock (AAL) fell 4.9%. Still, as with many economic indicators, the March reading shows only an initial view of the damage done by the coronavirus pandemic, as state lockdowns and large-scale business disruptions did not begin until the middle of the month. https://asset.barrons.com/dj-mg/dice/barrons-staffpicks-2d590600-c862-4394-b9d3-66b48c376d60/inset.json Following the conclusion of its April meeting yesterday, the Federal Reserve opened a new lending facility to buy loans from larger businesses, and those with relatively high debt levels—up to six times last year’s earnings before interest, tax, depreciation, and amortization, or Ebitda.
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Facebook stock (ticker: FB) jumped 5.4%, Tesla stock (TSLA) fell 2.3%, and American Airlines Group stock (AAL) fell 4.9%. Together with the other two lending facilities announced last month, the three programs will have a maximum size of $600 billion in loan purchasing. Across the Atlantic, the European Central Bank kept its key official interest rate steady at minus 0.5% on Thursday.
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Facebook stock (ticker: FB) jumped 5.4%, Tesla stock (TSLA) fell 2.3%, and American Airlines Group stock (AAL) fell 4.9%. The Bureau of Economic Analysis also said on Thursday that consumer spending—the key driver of the American economy—fell by 7.5% in March, marking the steepest monthly decline in records tracing back to 1959. Still, as with many economic indicators, the March reading shows only an initial view of the damage done by the coronavirus pandemic, as state lockdowns and large-scale business disruptions did not begin until the middle of the month.
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Facebook stock (ticker: FB) jumped 5.4%, Tesla stock (TSLA) fell 2.3%, and American Airlines Group stock (AAL) fell 4.9%. The number is down from the previous week’s 4.4 million, but still high based on past data. Together with the other two lending facilities announced last month, the three programs will have a maximum size of $600 billion in loan purchasing.
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7a21b4dc-8fac-4fb0-aff8-9a4de1c7779f
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5980.0
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2020-04-30 00:00:00 UTC
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BUZZ-U.S. STOCKS ON THE MOVE-Facebook, Twitter, Valaris
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AAL
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https://www.nasdaq.com/articles/buzz-u.s.-stocks-on-the-move-facebook-twitter-valaris-2020-04-30
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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 indexes dipped on Thursday as a grim U.S. jobless claims report took the shine off a strong month for stock markets globally, but encouraging quarterly earnings reports from Facebook and Tesla supported the Nasdaq..N
At 11:13 ET, the Dow Jones Industrial Average .DJI was down 0.85% at 24,424.73. The S&P 500 .SPX was down 0.61% at 2,921.46 and the Nasdaq Composite .IXIC was unchanged at 8,914.831. The top three S&P 500 .PG.INX percentage gainers: ** ABIOMED Inc ABMD.O, up 12.1% ** ServiceNow Inc NOW.N, up 9.7% ** Facebook Inc FB.O, up 5.9% The top three S&P 500 .PL.INX percentage losers: ** Molson Coors Beverage Co TAP.N, down 10.7% ** Tapestry Inc TPR.N, down 9.5% ** Discovery Inc DISCA.N, down 8.1% The top three NYSE .PG.N percentage gainers: ** Direxion Daily S&P 500 High Beta Bull 3X Shares HIBL.N, up 1,274.8% ** VanEck Vectors Unconventional Oil & Gas ETF FRAK.N, up 1,071% ** Kraton Corp KRA.N, up 30.4% The top three NYSE .PL.N percentage losers: ** Chesapeake Energy Inc CHK.N, down 31.2% ** Premise Capital Diversified Tactical ETF TCTL.N, down 21.6% ** Direxion Daily Communication Services Idx Bear 3X MUTE.N, down 18% The top three Nasdaq .PG.O percentage gainers: ** Thermogenes Holdings Inc THMO.O, up 74.8% ** Midatech Pharma Plc MTP.O, up 70.5% ** Marker Therapeutics Inc MRKR.O, up 35.4% The top three Nasdaq .PL.O percentage losers: ** Verona Pharm Plc VRNA.O, down 23.9% ** Capricor Therapeutics Inc CAPR.O, down 19.6% ** Brundage-Bone Concrete Pumping Holdings Inc BBCP.O, down 14.6% ** Secoo Holding Ltd SECO.O: up 17.6%
BUZZ-Secoo Holding: Rises as surge in orders boosts Q4 revenue ** Syndax Pharmaceutical Inc SNDX.O: up 1.8%
BUZZ-Syndax Pharma rises after pricing upsized stock offering ** Baxter International Inc BAX.N: up 0.3%
BUZZ-Baxter: Up on Q1 profit beat amid pandemic ** Textron Inc TXT.N: down 7.1%
BUZZ-Textron Inc: Falls as virus hits business jet demand ** Molson Coors Beverage Co TAP.N: down 10.7%
BUZZ-Molson Coors: Coronavirus drains beer demand in pubs, bars ** Church & Dwight Co Inc CHD.N: up 1.1%
BUZZ-Church & Dwight: Rises as higher demand for hygiene products lifts revenue ** LKQ Corp LKQ.O: up 3.6%
BUZZ-LKQ Corp: Rises after profit beats estimates ** American Airlines Group Inc AAL.O: down 4.7%
BUZZ-American Airlines Group drops after posting hefty Q1 loss, peers fall ** Trupanion Inc TRUP.O: down 7.1%
BUZZ-Trupanion trips as Zoetis launches Pumpkin pet insurance unit ** Microsoft Corp MSFT.O: up 1.1%
BUZZ-Street View: Microsoft's cloud in more homes, offices during pandemic, and beyond ** Tesla Inc TSLA.O: up 3.0% BUZZ-Street View: Tesla's China demand a bright spot amid virus havoc ** Qualcomm Inc QCOM.O: up 1.5% BUZZ-Street View: Qualcomm's 5G to offset virus woes as focus shifts to 2021 ** Facebook Inc FB.O: up 5.9% BUZZ-Street View: Facebook shows resilience, stability in turbulent times ** Zoom Video Communications Inc ZM.O: down 6.8% BUZZ-Zooming in: Video conference app admits DAU claim was wrong ** ServiceNow Inc NOW.N: up 9.6% BUZZ-ServiceNow Inc: Rises as subscription revenue spike powers Q1 beat ** Twitter Inc TWTR.N: down 6.2%
BUZZ-Twitter: Falls on potential decline in ad sales ** Six Flags Entertainment Corp SIX.N: down 4.6% BUZZ-Six Flags: Rises on smaller-than-expected quarterly loss, revenue beat ** Valaris Plc VAL.N: up 14.3% BUZZ-Valaris: Up on capital structure alternatives, cost cutting plans ** Align Technology Inc ALGN.O: down 2.9% BUZZ-Align Technology: Jefferies hikes PT as co clenches its teeth through pandemic ** AcelRx Pharmaceuticals Inc ACRX.O: up 3.2% BUZZ-AcelRx: Jumps after opioid drug to be included in U.S. military sets ** QEP Resources Inc QEP.N: up 42.7% BUZZ-QEP Resources: Surges on higher first-quarter adj. profit, outlook ** NeoGenomics Inc NEO.O: down 9.1% BUZZ-NeoGenomics falls on dual $300 mln stock, convertible debt offerings ** Hologic Inc HOLX.O: up 4.1% BUZZ-COVID-19 tests leave Hologic on solid footing to weather pandemic storm - analysts ** Tapestry Inc TPR.N: down 9.5% BUZZ-Tapestry: Falls as virus-led sales decline prompts quarterly miss ** General Electric Co GE.N: up 1.6% BUZZ-Street View: General Electric set to get materially worse near term ** Dunkin' Brands Group Inc DNKN.O: down 1.9% BUZZ-Dunkin' Brands: Falls on dividend suspension ** Dow Inc DOW.N: down 2.2% BUZZ-Dow Inc: Declines after 6 sessions as oil plunge, lockdowns choke margins ** Callon Petroleum Co CPE.N: up 27.8% ** Occidental Petroleum Corp OXY.N: up 1.6% ** SM Energy Co SM.N: up 12.1% ** Apache Corp APA.N: up 1.6% ** Murphy Oil Corp MUR.N: up 4.5% ** Marathon Oil Corp MRO.N: up 4.4% BUZZ-Oil and gas stocks gain on signs of pick up in fuel demand ** Perrigo Co PRGO.N: down 1.2% BUZZ-Perrigo: Falls as prescription pharma unit sales disappoint
The 11 major S&P 500 sectors:
Communication Services
.SPLRCL
down 0.03%
Consumer Discretionary
.SPLRCD
down 0.10%
Consumer Staples
.SPLRCS
down 0.61%
Energy
.SPNY
down 1.33%
Financial
.SPSY
down 1.81%
Health
.SPXHC
up 0.14%
Industrial
.SPLRCI
down 1.60%
Information Technology
.SPLRCT
down 0.17%
Materials
.SPLRCM
down 2.05%
Real Estate
.SPLRCR
down 1.43%
Utilities
.SPLRCU
down 2.20%
(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: ** ABIOMED Inc ABMD.O, up 12.1% ** ServiceNow Inc NOW.N, up 9.7% ** Facebook Inc FB.O, up 5.9% The top three S&P 500 .PL.INX percentage losers: ** Molson Coors Beverage Co TAP.N, down 10.7% ** Tapestry Inc TPR.N, down 9.5% ** Discovery Inc DISCA.N, down 8.1% The top three NYSE .PG.N percentage gainers: ** Direxion Daily S&P 500 High Beta Bull 3X Shares HIBL.N, up 1,274.8% ** VanEck Vectors Unconventional Oil & Gas ETF FRAK.N, up 1,071% ** Kraton Corp KRA.N, up 30.4% The top three NYSE .PL.N percentage losers: ** Chesapeake Energy Inc CHK.N, down 31.2% ** Premise Capital Diversified Tactical ETF TCTL.N, down 21.6% ** Direxion Daily Communication Services Idx Bear 3X MUTE.N, down 18% The top three Nasdaq .PG.O percentage gainers: ** Thermogenes Holdings Inc THMO.O, up 74.8% ** Midatech Pharma Plc MTP.O, up 70.5% ** Marker Therapeutics Inc MRKR.O, up 35.4% The top three Nasdaq .PL.O percentage losers: ** Verona Pharm Plc VRNA.O, down 23.9% ** Capricor Therapeutics Inc CAPR.O, down 19.6% ** Brundage-Bone Concrete Pumping Holdings Inc BBCP.O, down 14.6% ** Secoo Holding Ltd SECO.O: up 17.6% BUZZ-Secoo Holding: Rises as surge in orders boosts Q4 revenue ** Syndax Pharmaceutical Inc SNDX.O: up 1.8% BUZZ-Syndax Pharma rises after pricing upsized stock offering ** Baxter International Inc BAX.N: up 0.3% BUZZ-Baxter: Up on Q1 profit beat amid pandemic ** Textron Inc TXT.N: down 7.1% BUZZ-Textron Inc: Falls as virus hits business jet demand ** Molson Coors Beverage Co TAP.N: down 10.7% BUZZ-Molson Coors: Coronavirus drains beer demand in pubs, bars ** Church & Dwight Co Inc CHD.N: up 1.1% BUZZ-Church & Dwight: Rises as higher demand for hygiene products lifts revenue ** LKQ Corp LKQ.O: up 3.6% BUZZ-LKQ Corp: Rises after profit beats estimates ** American Airlines Group Inc AAL.O: down 4.7% BUZZ-American Airlines Group drops after posting hefty Q1 loss, peers fall ** Trupanion Inc TRUP.O: down 7.1% BUZZ-Trupanion trips as Zoetis launches Pumpkin pet insurance unit ** Microsoft Corp MSFT.O: up 1.1% BUZZ-Street View: Microsoft's cloud in more homes, offices during pandemic, and beyond ** Tesla Inc TSLA.O: up 3.0% BUZZ-Street View: Tesla's China demand a bright spot amid virus havoc ** Qualcomm Inc QCOM.O: up 1.5% BUZZ-Street View: Qualcomm's 5G to offset virus woes as focus shifts to 2021 ** Facebook Inc FB.O: up 5.9% BUZZ-Street View: Facebook shows resilience, stability in turbulent times ** Zoom Video Communications Inc ZM.O: down 6.8% BUZZ-Zooming in: Video conference app admits DAU claim was wrong ** ServiceNow Inc NOW.N: up 9.6% BUZZ-ServiceNow Inc: Rises as subscription revenue spike powers Q1 beat ** Twitter Inc TWTR.N: down 6.2% BUZZ-Twitter: Falls on potential decline in ad sales ** Six Flags Entertainment Corp SIX.N: down 4.6% BUZZ-Six Flags: Rises on smaller-than-expected quarterly loss, revenue beat ** Valaris Plc VAL.N: up 14.3% BUZZ-Valaris: Up on capital structure alternatives, cost cutting plans ** Align Technology Inc ALGN.O: down 2.9% BUZZ-Align Technology: Jefferies hikes PT as co clenches its teeth through pandemic ** AcelRx Pharmaceuticals Inc ACRX.O: up 3.2% BUZZ-AcelRx: Jumps after opioid drug to be included in U.S. military sets ** QEP Resources Inc QEP.N: up 42.7% BUZZ-QEP Resources: Surges on higher first-quarter adj. Eikon search string for individual stock moves: STXBZ The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh The S&P 500 and Dow Jones indexes dipped on Thursday as a grim U.S. jobless claims report took the shine off a strong month for stock markets globally, but encouraging quarterly earnings reports from Facebook and Tesla supported the Nasdaq..N At 11:13 ET, the Dow Jones Industrial Average .DJI was down 0.85% at 24,424.73. profit, outlook ** NeoGenomics Inc NEO.O: down 9.1% BUZZ-NeoGenomics falls on dual $300 mln stock, convertible debt offerings ** Hologic Inc HOLX.O: up 4.1% BUZZ-COVID-19 tests leave Hologic on solid footing to weather pandemic storm - analysts ** Tapestry Inc TPR.N: down 9.5% BUZZ-Tapestry: Falls as virus-led sales decline prompts quarterly miss ** General Electric Co GE.N: up 1.6% BUZZ-Street View: General Electric set to get materially worse near term ** Dunkin' Brands Group Inc DNKN.O: down 1.9% BUZZ-Dunkin' Brands: Falls on dividend suspension ** Dow Inc DOW.N: down 2.2% BUZZ-Dow Inc: Declines after 6 sessions as oil plunge, lockdowns choke margins ** Callon Petroleum Co CPE.N: up 27.8% ** Occidental Petroleum Corp OXY.N: up 1.6% ** SM Energy Co SM.N: up 12.1% ** Apache Corp APA.N: up 1.6% ** Murphy Oil Corp MUR.N: up 4.5% ** Marathon Oil Corp MRO.N: up 4.4% BUZZ-Oil and gas stocks gain on signs of pick up in fuel demand ** Perrigo Co PRGO.N: down 1.2% BUZZ-Perrigo: Falls as prescription pharma unit sales disappoint The 11 major S&P 500 sectors: Communication Services
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The top three S&P 500 .PG.INX percentage gainers: ** ABIOMED Inc ABMD.O, up 12.1% ** ServiceNow Inc NOW.N, up 9.7% ** Facebook Inc FB.O, up 5.9% The top three S&P 500 .PL.INX percentage losers: ** Molson Coors Beverage Co TAP.N, down 10.7% ** Tapestry Inc TPR.N, down 9.5% ** Discovery Inc DISCA.N, down 8.1% The top three NYSE .PG.N percentage gainers: ** Direxion Daily S&P 500 High Beta Bull 3X Shares HIBL.N, up 1,274.8% ** VanEck Vectors Unconventional Oil & Gas ETF FRAK.N, up 1,071% ** Kraton Corp KRA.N, up 30.4% The top three NYSE .PL.N percentage losers: ** Chesapeake Energy Inc CHK.N, down 31.2% ** Premise Capital Diversified Tactical ETF TCTL.N, down 21.6% ** Direxion Daily Communication Services Idx Bear 3X MUTE.N, down 18% The top three Nasdaq .PG.O percentage gainers: ** Thermogenes Holdings Inc THMO.O, up 74.8% ** Midatech Pharma Plc MTP.O, up 70.5% ** Marker Therapeutics Inc MRKR.O, up 35.4% The top three Nasdaq .PL.O percentage losers: ** Verona Pharm Plc VRNA.O, down 23.9% ** Capricor Therapeutics Inc CAPR.O, down 19.6% ** Brundage-Bone Concrete Pumping Holdings Inc BBCP.O, down 14.6% ** Secoo Holding Ltd SECO.O: up 17.6% BUZZ-Secoo Holding: Rises as surge in orders boosts Q4 revenue ** Syndax Pharmaceutical Inc SNDX.O: up 1.8% BUZZ-Syndax Pharma rises after pricing upsized stock offering ** Baxter International Inc BAX.N: up 0.3% BUZZ-Baxter: Up on Q1 profit beat amid pandemic ** Textron Inc TXT.N: down 7.1% BUZZ-Textron Inc: Falls as virus hits business jet demand ** Molson Coors Beverage Co TAP.N: down 10.7% BUZZ-Molson Coors: Coronavirus drains beer demand in pubs, bars ** Church & Dwight Co Inc CHD.N: up 1.1% BUZZ-Church & Dwight: Rises as higher demand for hygiene products lifts revenue ** LKQ Corp LKQ.O: up 3.6% BUZZ-LKQ Corp: Rises after profit beats estimates ** American Airlines Group Inc AAL.O: down 4.7% BUZZ-American Airlines Group drops after posting hefty Q1 loss, peers fall ** Trupanion Inc TRUP.O: down 7.1% BUZZ-Trupanion trips as Zoetis launches Pumpkin pet insurance unit ** Microsoft Corp MSFT.O: up 1.1% BUZZ-Street View: Microsoft's cloud in more homes, offices during pandemic, and beyond ** Tesla Inc TSLA.O: up 3.0% BUZZ-Street View: Tesla's China demand a bright spot amid virus havoc ** Qualcomm Inc QCOM.O: up 1.5% BUZZ-Street View: Qualcomm's 5G to offset virus woes as focus shifts to 2021 ** Facebook Inc FB.O: up 5.9% BUZZ-Street View: Facebook shows resilience, stability in turbulent times ** Zoom Video Communications Inc ZM.O: down 6.8% BUZZ-Zooming in: Video conference app admits DAU claim was wrong ** ServiceNow Inc NOW.N: up 9.6% BUZZ-ServiceNow Inc: Rises as subscription revenue spike powers Q1 beat ** Twitter Inc TWTR.N: down 6.2% BUZZ-Twitter: Falls on potential decline in ad sales ** Six Flags Entertainment Corp SIX.N: down 4.6% BUZZ-Six Flags: Rises on smaller-than-expected quarterly loss, revenue beat ** Valaris Plc VAL.N: up 14.3% BUZZ-Valaris: Up on capital structure alternatives, cost cutting plans ** Align Technology Inc ALGN.O: down 2.9% BUZZ-Align Technology: Jefferies hikes PT as co clenches its teeth through pandemic ** AcelRx Pharmaceuticals Inc ACRX.O: up 3.2% BUZZ-AcelRx: Jumps after opioid drug to be included in U.S. military sets ** QEP Resources Inc QEP.N: up 42.7% BUZZ-QEP Resources: Surges on higher first-quarter adj. Eikon search string for individual stock moves: STXBZ The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh The S&P 500 and Dow Jones indexes dipped on Thursday as a grim U.S. jobless claims report took the shine off a strong month for stock markets globally, but encouraging quarterly earnings reports from Facebook and Tesla supported the Nasdaq..N At 11:13 ET, the Dow Jones Industrial Average .DJI was down 0.85% at 24,424.73. profit, outlook ** NeoGenomics Inc NEO.O: down 9.1% BUZZ-NeoGenomics falls on dual $300 mln stock, convertible debt offerings ** Hologic Inc HOLX.O: up 4.1% BUZZ-COVID-19 tests leave Hologic on solid footing to weather pandemic storm - analysts ** Tapestry Inc TPR.N: down 9.5% BUZZ-Tapestry: Falls as virus-led sales decline prompts quarterly miss ** General Electric Co GE.N: up 1.6% BUZZ-Street View: General Electric set to get materially worse near term ** Dunkin' Brands Group Inc DNKN.O: down 1.9% BUZZ-Dunkin' Brands: Falls on dividend suspension ** Dow Inc DOW.N: down 2.2% BUZZ-Dow Inc: Declines after 6 sessions as oil plunge, lockdowns choke margins ** Callon Petroleum Co CPE.N: up 27.8% ** Occidental Petroleum Corp OXY.N: up 1.6% ** SM Energy Co SM.N: up 12.1% ** Apache Corp APA.N: up 1.6% ** Murphy Oil Corp MUR.N: up 4.5% ** Marathon Oil Corp MRO.N: up 4.4% BUZZ-Oil and gas stocks gain on signs of pick up in fuel demand ** Perrigo Co PRGO.N: down 1.2% BUZZ-Perrigo: Falls as prescription pharma unit sales disappoint The 11 major S&P 500 sectors: Communication Services
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The top three S&P 500 .PG.INX percentage gainers: ** ABIOMED Inc ABMD.O, up 12.1% ** ServiceNow Inc NOW.N, up 9.7% ** Facebook Inc FB.O, up 5.9% The top three S&P 500 .PL.INX percentage losers: ** Molson Coors Beverage Co TAP.N, down 10.7% ** Tapestry Inc TPR.N, down 9.5% ** Discovery Inc DISCA.N, down 8.1% The top three NYSE .PG.N percentage gainers: ** Direxion Daily S&P 500 High Beta Bull 3X Shares HIBL.N, up 1,274.8% ** VanEck Vectors Unconventional Oil & Gas ETF FRAK.N, up 1,071% ** Kraton Corp KRA.N, up 30.4% The top three NYSE .PL.N percentage losers: ** Chesapeake Energy Inc CHK.N, down 31.2% ** Premise Capital Diversified Tactical ETF TCTL.N, down 21.6% ** Direxion Daily Communication Services Idx Bear 3X MUTE.N, down 18% The top three Nasdaq .PG.O percentage gainers: ** Thermogenes Holdings Inc THMO.O, up 74.8% ** Midatech Pharma Plc MTP.O, up 70.5% ** Marker Therapeutics Inc MRKR.O, up 35.4% The top three Nasdaq .PL.O percentage losers: ** Verona Pharm Plc VRNA.O, down 23.9% ** Capricor Therapeutics Inc CAPR.O, down 19.6% ** Brundage-Bone Concrete Pumping Holdings Inc BBCP.O, down 14.6% ** Secoo Holding Ltd SECO.O: up 17.6% BUZZ-Secoo Holding: Rises as surge in orders boosts Q4 revenue ** Syndax Pharmaceutical Inc SNDX.O: up 1.8% BUZZ-Syndax Pharma rises after pricing upsized stock offering ** Baxter International Inc BAX.N: up 0.3% BUZZ-Baxter: Up on Q1 profit beat amid pandemic ** Textron Inc TXT.N: down 7.1% BUZZ-Textron Inc: Falls as virus hits business jet demand ** Molson Coors Beverage Co TAP.N: down 10.7% BUZZ-Molson Coors: Coronavirus drains beer demand in pubs, bars ** Church & Dwight Co Inc CHD.N: up 1.1% BUZZ-Church & Dwight: Rises as higher demand for hygiene products lifts revenue ** LKQ Corp LKQ.O: up 3.6% BUZZ-LKQ Corp: Rises after profit beats estimates ** American Airlines Group Inc AAL.O: down 4.7% BUZZ-American Airlines Group drops after posting hefty Q1 loss, peers fall ** Trupanion Inc TRUP.O: down 7.1% BUZZ-Trupanion trips as Zoetis launches Pumpkin pet insurance unit ** Microsoft Corp MSFT.O: up 1.1% BUZZ-Street View: Microsoft's cloud in more homes, offices during pandemic, and beyond ** Tesla Inc TSLA.O: up 3.0% BUZZ-Street View: Tesla's China demand a bright spot amid virus havoc ** Qualcomm Inc QCOM.O: up 1.5% BUZZ-Street View: Qualcomm's 5G to offset virus woes as focus shifts to 2021 ** Facebook Inc FB.O: up 5.9% BUZZ-Street View: Facebook shows resilience, stability in turbulent times ** Zoom Video Communications Inc ZM.O: down 6.8% BUZZ-Zooming in: Video conference app admits DAU claim was wrong ** ServiceNow Inc NOW.N: up 9.6% BUZZ-ServiceNow Inc: Rises as subscription revenue spike powers Q1 beat ** Twitter Inc TWTR.N: down 6.2% BUZZ-Twitter: Falls on potential decline in ad sales ** Six Flags Entertainment Corp SIX.N: down 4.6% BUZZ-Six Flags: Rises on smaller-than-expected quarterly loss, revenue beat ** Valaris Plc VAL.N: up 14.3% BUZZ-Valaris: Up on capital structure alternatives, cost cutting plans ** Align Technology Inc ALGN.O: down 2.9% BUZZ-Align Technology: Jefferies hikes PT as co clenches its teeth through pandemic ** AcelRx Pharmaceuticals Inc ACRX.O: up 3.2% BUZZ-AcelRx: Jumps after opioid drug to be included in U.S. military sets ** QEP Resources Inc QEP.N: up 42.7% BUZZ-QEP Resources: Surges on higher first-quarter adj. Eikon search string for individual stock moves: STXBZ The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh The S&P 500 and Dow Jones indexes dipped on Thursday as a grim U.S. jobless claims report took the shine off a strong month for stock markets globally, but encouraging quarterly earnings reports from Facebook and Tesla supported the Nasdaq..N At 11:13 ET, the Dow Jones Industrial Average .DJI was down 0.85% at 24,424.73. profit, outlook ** NeoGenomics Inc NEO.O: down 9.1% BUZZ-NeoGenomics falls on dual $300 mln stock, convertible debt offerings ** Hologic Inc HOLX.O: up 4.1% BUZZ-COVID-19 tests leave Hologic on solid footing to weather pandemic storm - analysts ** Tapestry Inc TPR.N: down 9.5% BUZZ-Tapestry: Falls as virus-led sales decline prompts quarterly miss ** General Electric Co GE.N: up 1.6% BUZZ-Street View: General Electric set to get materially worse near term ** Dunkin' Brands Group Inc DNKN.O: down 1.9% BUZZ-Dunkin' Brands: Falls on dividend suspension ** Dow Inc DOW.N: down 2.2% BUZZ-Dow Inc: Declines after 6 sessions as oil plunge, lockdowns choke margins ** Callon Petroleum Co CPE.N: up 27.8% ** Occidental Petroleum Corp OXY.N: up 1.6% ** SM Energy Co SM.N: up 12.1% ** Apache Corp APA.N: up 1.6% ** Murphy Oil Corp MUR.N: up 4.5% ** Marathon Oil Corp MRO.N: up 4.4% BUZZ-Oil and gas stocks gain on signs of pick up in fuel demand ** Perrigo Co PRGO.N: down 1.2% BUZZ-Perrigo: Falls as prescription pharma unit sales disappoint The 11 major S&P 500 sectors: Communication Services
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The top three S&P 500 .PG.INX percentage gainers: ** ABIOMED Inc ABMD.O, up 12.1% ** ServiceNow Inc NOW.N, up 9.7% ** Facebook Inc FB.O, up 5.9% The top three S&P 500 .PL.INX percentage losers: ** Molson Coors Beverage Co TAP.N, down 10.7% ** Tapestry Inc TPR.N, down 9.5% ** Discovery Inc DISCA.N, down 8.1% The top three NYSE .PG.N percentage gainers: ** Direxion Daily S&P 500 High Beta Bull 3X Shares HIBL.N, up 1,274.8% ** VanEck Vectors Unconventional Oil & Gas ETF FRAK.N, up 1,071% ** Kraton Corp KRA.N, up 30.4% The top three NYSE .PL.N percentage losers: ** Chesapeake Energy Inc CHK.N, down 31.2% ** Premise Capital Diversified Tactical ETF TCTL.N, down 21.6% ** Direxion Daily Communication Services Idx Bear 3X MUTE.N, down 18% The top three Nasdaq .PG.O percentage gainers: ** Thermogenes Holdings Inc THMO.O, up 74.8% ** Midatech Pharma Plc MTP.O, up 70.5% ** Marker Therapeutics Inc MRKR.O, up 35.4% The top three Nasdaq .PL.O percentage losers: ** Verona Pharm Plc VRNA.O, down 23.9% ** Capricor Therapeutics Inc CAPR.O, down 19.6% ** Brundage-Bone Concrete Pumping Holdings Inc BBCP.O, down 14.6% ** Secoo Holding Ltd SECO.O: up 17.6% BUZZ-Secoo Holding: Rises as surge in orders boosts Q4 revenue ** Syndax Pharmaceutical Inc SNDX.O: up 1.8% BUZZ-Syndax Pharma rises after pricing upsized stock offering ** Baxter International Inc BAX.N: up 0.3% BUZZ-Baxter: Up on Q1 profit beat amid pandemic ** Textron Inc TXT.N: down 7.1% BUZZ-Textron Inc: Falls as virus hits business jet demand ** Molson Coors Beverage Co TAP.N: down 10.7% BUZZ-Molson Coors: Coronavirus drains beer demand in pubs, bars ** Church & Dwight Co Inc CHD.N: up 1.1% BUZZ-Church & Dwight: Rises as higher demand for hygiene products lifts revenue ** LKQ Corp LKQ.O: up 3.6% BUZZ-LKQ Corp: Rises after profit beats estimates ** American Airlines Group Inc AAL.O: down 4.7% BUZZ-American Airlines Group drops after posting hefty Q1 loss, peers fall ** Trupanion Inc TRUP.O: down 7.1% BUZZ-Trupanion trips as Zoetis launches Pumpkin pet insurance unit ** Microsoft Corp MSFT.O: up 1.1% BUZZ-Street View: Microsoft's cloud in more homes, offices during pandemic, and beyond ** Tesla Inc TSLA.O: up 3.0% BUZZ-Street View: Tesla's China demand a bright spot amid virus havoc ** Qualcomm Inc QCOM.O: up 1.5% BUZZ-Street View: Qualcomm's 5G to offset virus woes as focus shifts to 2021 ** Facebook Inc FB.O: up 5.9% BUZZ-Street View: Facebook shows resilience, stability in turbulent times ** Zoom Video Communications Inc ZM.O: down 6.8% BUZZ-Zooming in: Video conference app admits DAU claim was wrong ** ServiceNow Inc NOW.N: up 9.6% BUZZ-ServiceNow Inc: Rises as subscription revenue spike powers Q1 beat ** Twitter Inc TWTR.N: down 6.2% BUZZ-Twitter: Falls on potential decline in ad sales ** Six Flags Entertainment Corp SIX.N: down 4.6% BUZZ-Six Flags: Rises on smaller-than-expected quarterly loss, revenue beat ** Valaris Plc VAL.N: up 14.3% BUZZ-Valaris: Up on capital structure alternatives, cost cutting plans ** Align Technology Inc ALGN.O: down 2.9% BUZZ-Align Technology: Jefferies hikes PT as co clenches its teeth through pandemic ** AcelRx Pharmaceuticals Inc ACRX.O: up 3.2% BUZZ-AcelRx: Jumps after opioid drug to be included in U.S. military sets ** QEP Resources Inc QEP.N: up 42.7% BUZZ-QEP Resources: Surges on higher first-quarter adj. Eikon search string for individual stock moves: STXBZ The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh The S&P 500 and Dow Jones indexes dipped on Thursday as a grim U.S. jobless claims report took the shine off a strong month for stock markets globally, but encouraging quarterly earnings reports from Facebook and Tesla supported the Nasdaq..N At 11:13 ET, the Dow Jones Industrial Average .DJI was down 0.85% at 24,424.73. The S&P 500 .SPX was down 0.61% at 2,921.46 and the Nasdaq Composite .IXIC was unchanged at 8,914.831.
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116b2360-b417-4443-ac6d-8a4d9bfb689b
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5981.0
|
2020-04-30 00:00:00 UTC
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Wall St caps best month in decades with broad sell-off
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AAL
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https://www.nasdaq.com/articles/wall-st-caps-best-month-in-decades-with-broad-sell-off-2020-04-30
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nan
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nan
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By Stephen Culp
NEW YORK, April 30 (Reuters) - U.S. stocks lost ground on Thursday as grim economic data and mixed earnings prompted investors to take profits at the close of the S&P 500's best month in 33 years, a remarkable run driven by expectations the economy will soon start recovering from crushing restrictions enacted to curb the coronavirus pandemic.
While risk-off selling pulled all three major U.S. stock averages into the red, the S&P 500 and the Dow posted their largest monthly percentage gains since January 1987, with the Nasdaq having its best month since June 2000.
The three indexes remain well within 20% of record highs reached in February, having quickly rebounded since shutdown efforts to curb the spread of the coronavirus pandemic brought the economy to a grinding halt.
The five-week tally of unemployment claims topped 30 million and consumer spending has plummeted, according to the latest round of dismal indicators providing another snapshot of the crushing economic effects of the widespread shutdown.
"We've had a tremendous run but we've had the worst economic data since the Great Depression," said Paul Nolte, portfolio manager at Kingsview Asset Management in Chicago. "Business and earnings might not be snapping back as quickly as the v-shaped recovery on Wall Street would imply."
The Federal Reserved announced that it would broaden its "Main Street Lending Program" by lowering the minimum loan size and expanding eligibility.
"Wall Street is liking all the programs that the government and the Fed are putting together," Nolte added. "So Wall Street is doing fine but Main Street is going to be a longer process."
The Dow Jones Industrial Average .DJI fell 288.14 points, or 1.17%, to 24,345.72, the S&P 500 .SPX lost 27.08 points, or 0.92%, to 2,912.43 and the Nasdaq Composite .IXIC dropped 25.16 points, or 0.28%, to 8,889.55.
Of the 11 major sectors in the S&P 500, all but consumer discretionary .SPLRCD and communications services .SPLRCL closed in negative territory, with energy companies .SPNY suffering the largest percentage loss.
Earnings season continues apace, with 236 of the companies in the S&P 500 having reported quarterly results. Of those, two-thirds have surprised consensus estimates to the upside, according to Refinitiv data.
But there have been 90 negative pre-announcements in the first quarter, compared with 40 positive, and analysts see aggregate S&P 500 earnings dropping by a year-on-year rate of 14.4% in the first three months of 2020, per Refinitiv.
Amazon.com AMZN.O reported results after the closing bell. In post-market trading, its shares were down nearly 5%. Apple Inc AAPL.O earnings were expected soon.
Facebook Inc FB.O climbed 5.2% after the social media company reported better-than-expected quarterly revenue.
American Airlines AAL.O posted its first quarterly loss since emerging from bankruptcy in 2013, sending its shares down 4.9%.
Declining issues outnumbered advancing ones on the NYSE by a 2.58-to-1 ratio; on Nasdaq, a 2.81-to-1 ratio favored decliners.
The S&P 500 posted three new 52-week highs and one new low; the Nasdaq Composite recorded 25 new highs and four new lows.
Volume on U.S. exchanges was 12.80 billion shares, compared with the 12.3 billion average over the last 20 trading days.
(Reporting by Stephen Culp; Editing by Tom Brown)
((stephen.culp@thomsonreuters.com; 646-223-6076;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines AAL.O posted its first quarterly loss since emerging from bankruptcy in 2013, sending its shares down 4.9%. By Stephen Culp NEW YORK, April 30 (Reuters) - U.S. stocks lost ground on Thursday as grim economic data and mixed earnings prompted investors to take profits at the close of the S&P 500's best month in 33 years, a remarkable run driven by expectations the economy will soon start recovering from crushing restrictions enacted to curb the coronavirus pandemic. The three indexes remain well within 20% of record highs reached in February, having quickly rebounded since shutdown efforts to curb the spread of the coronavirus pandemic brought the economy to a grinding halt.
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American Airlines AAL.O posted its first quarterly loss since emerging from bankruptcy in 2013, sending its shares down 4.9%. While risk-off selling pulled all three major U.S. stock averages into the red, the S&P 500 and the Dow posted their largest monthly percentage gains since January 1987, with the Nasdaq having its best month since June 2000. The Dow Jones Industrial Average .DJI fell 288.14 points, or 1.17%, to 24,345.72, the S&P 500 .SPX lost 27.08 points, or 0.92%, to 2,912.43 and the Nasdaq Composite .IXIC dropped 25.16 points, or 0.28%, to 8,889.55.
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American Airlines AAL.O posted its first quarterly loss since emerging from bankruptcy in 2013, sending its shares down 4.9%. By Stephen Culp NEW YORK, April 30 (Reuters) - U.S. stocks lost ground on Thursday as grim economic data and mixed earnings prompted investors to take profits at the close of the S&P 500's best month in 33 years, a remarkable run driven by expectations the economy will soon start recovering from crushing restrictions enacted to curb the coronavirus pandemic. While risk-off selling pulled all three major U.S. stock averages into the red, the S&P 500 and the Dow posted their largest monthly percentage gains since January 1987, with the Nasdaq having its best month since June 2000.
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American Airlines AAL.O posted its first quarterly loss since emerging from bankruptcy in 2013, sending its shares down 4.9%. While risk-off selling pulled all three major U.S. stock averages into the red, the S&P 500 and the Dow posted their largest monthly percentage gains since January 1987, with the Nasdaq having its best month since June 2000. Earnings season continues apace, with 236 of the companies in the S&P 500 having reported quarterly results.
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9869baa5-091b-4482-b667-0a7182f28c58
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5982.0
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2020-04-30 00:00:00 UTC
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American Airlines Stock Dives on Missed Earnings and Cash-Burn Rate
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AAL
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https://www.nasdaq.com/articles/american-airlines-stock-dives-on-missed-earnings-and-cash-burn-rate-2020-04-30
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nan
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nan
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American Airlines Group missed earnings estimates for the first quarter, and the stock is drifting down as investors appear unimpressed with the company’s efforts to conserve cash and cut costs in the face of the coronavirus.
American (ticker: AAL) reported an adjusted loss of $2.65 a share, missing consensus estimates for a loss of $2.33 a share in the first quarter. Revenue came in at $8.5 billion, below estimates of $8.9 billion.
Shares of the airline were down about 4.6%, at $12.05, in recent trading, after initially falling more than 6%.
If there was good news in the report, it was that American’s liquidity appears to have stabilized. The company said it had $6.8 billion of cash and available funds at the end of the first quarter and expects to have $11 billion by the end of June.
The airline is getting $5.8 billion in payroll support from the government and raised $2 billion in capital from other sources. American is also expected to receive government loans of $4.8 billion under a separate aid program, though it may not need to tap the full amount.
One bit of encouraging news is that American’s daily cash burn appears to be falling. The company is burning through an average $70 million in cash a day but is targeting a $50 million burn rate by the end of June.
American also expects to boost revenue from air cargo, retire older aircraft, and slash capital spending, reducing operating expenses and capex by $12 billion this year.
Analysts gave American a mixed report card.
“In the near term, American’s liquidity is fine,” Cowen analyst Helane Becker wrote in a note Thursday. She praised the company’s capacity cuts and measures to restructure its fleet, but added that “there needs to be an additional sense of urgency given the state of demand and the expected slow recovery.”
Becker has an Outperform rating on the stock with a $15 price target.
Citi analyst Stephen Trent maintained his Sell rating and $10 price target. Operational results “looked a little weak,” he wrote in a note. He expects the stock to be range-bound as “a tug of war continues between investors that see the shares bottomed out versus those concerned about weak operational results and high leverage.”
Bernstein analyst David Vernon sounded unimpressed, though he maintained a Buy rating and $27 price target on the stock.
First-quarter results are “largely irrelevant,” he told Barron’s. All that matters are cash burn and liquidity. Ending the quarter with $6 billion in liquidity and a cash burn rate of $70 million a day is “bad combination,” he says, and he expects liquidity to drain as the company issues $14 million a day in ticket refunds.
“While there are going to be opportunities to improve on that burn rate through additional cost cuts and simplifying the fleet through early retirement of older aircraft, it looks like there is still a lot to do on cost at AAL,” he wrote in a report.
Nonetheless, Vernon still sees higher equity value in the stock for investors wiling to take a long view.
“It’s not a comfortable situation,” he says, noting that air travel remains down more than 90% from a year ago. “But I’m a believer the economy will recover slowly and travel will return. I don’t think business will be done over Zoom for eternity.”
Moreover, the government is clearly signaling it won’t let airlines go insolvent. “The important lessons here is that the government will provide support to make sure the airlines don’t fail,” he says. “Then they’ll have an opportunity to rebuild a network in the most lucrative market in the world.”
Write to Daren Fonda at daren.fonda@barrons.com
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American (ticker: AAL) reported an adjusted loss of $2.65 a share, missing consensus estimates for a loss of $2.33 a share in the first quarter. “While there are going to be opportunities to improve on that burn rate through additional cost cuts and simplifying the fleet through early retirement of older aircraft, it looks like there is still a lot to do on cost at AAL,” he wrote in a report. American Airlines Group missed earnings estimates for the first quarter, and the stock is drifting down as investors appear unimpressed with the company’s efforts to conserve cash and cut costs in the face of the coronavirus.
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American (ticker: AAL) reported an adjusted loss of $2.65 a share, missing consensus estimates for a loss of $2.33 a share in the first quarter. “While there are going to be opportunities to improve on that burn rate through additional cost cuts and simplifying the fleet through early retirement of older aircraft, it looks like there is still a lot to do on cost at AAL,” he wrote in a report. The company is burning through an average $70 million in cash a day but is targeting a $50 million burn rate by the end of June.
|
American (ticker: AAL) reported an adjusted loss of $2.65 a share, missing consensus estimates for a loss of $2.33 a share in the first quarter. “While there are going to be opportunities to improve on that burn rate through additional cost cuts and simplifying the fleet through early retirement of older aircraft, it looks like there is still a lot to do on cost at AAL,” he wrote in a report. American Airlines Group missed earnings estimates for the first quarter, and the stock is drifting down as investors appear unimpressed with the company’s efforts to conserve cash and cut costs in the face of the coronavirus.
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American (ticker: AAL) reported an adjusted loss of $2.65 a share, missing consensus estimates for a loss of $2.33 a share in the first quarter. “While there are going to be opportunities to improve on that burn rate through additional cost cuts and simplifying the fleet through early retirement of older aircraft, it looks like there is still a lot to do on cost at AAL,” he wrote in a report. The company said it had $6.8 billion of cash and available funds at the end of the first quarter and expects to have $11 billion by the end of June.
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68dbaf4c-8afc-4eaa-bfd0-91f18b66db93
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5983.0
|
2020-04-30 00:00:00 UTC
|
Wall Street slides on bleak data, capping a banner month
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AAL
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https://www.nasdaq.com/articles/wall-street-slides-on-bleak-data-capping-a-banner-month-2020-04-30
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nan
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nan
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By Stephen Culp
NEW YORK, April 30 (Reuters) - U.S. stocks fell on Thursday as grim economic data and mixed earnings prompted investors to take some profits at the close of Wall Street's best month in decades.
Although a broad sell-off in the session pushed all three major U.S. stock averages into the red, April nonetheless looks to have been a banner month for U.S. equities.
The S&P 500 and the Dow were set for their largest monthly percentage gains since January 1987, with the Nasdaq on course for its best month since April 2001.
The three indexes are well within 20% of record highs reached in February, having quickly rebounded since shutdown efforts to curb the spread of the coronavirus pandemic brought the economy to a grinding halt.
The five-week tally of unemployment claims topped 30 million and consumer spending has plummeted, according to the latest round of dismal indicators providing another snapshot of the crushing economic effects of the widespread shutdown.
"There was horrific data, and several numbers that were abysmal," said Peter Tuz, president of Chase Investment Counsel in Charlottesville, Virginia. "On the other hand, we've had a great month in April and people are taking some money off the table."
Early in the session, the Federal Reserved announced that it would broaden its "Main Street Lending Program" by lowering the minimum loan size and expanding eligibility, a move that briefly helped stocks pare their losses.
The Dow Jones Industrial Average .DJI fell 339.44 points, or 1.38%, to 24,294.42, the S&P 500 .SPX lost 36.3 points, or 1.23%, to 2,903.21 and the Nasdaq Composite .IXIC dropped 60.40 points, or 0.68%, to 8,854.31.
All 11 major sectors in the S&P 500 were in negative territory, with energy companies .SPNY suffering the largest percentage loss.
Earnings season continues apace, with 236 of the companies in the S&P 500 having reported quarterly results. Of those, two-thirds have surprised consensus estimates to the upside, according to Refinitiv data.
But there have been 90 negative pre-announcements in the first quarter, compared with 40 positive, and analysts see aggregate S&P earnings dropping by a year-on-year rate of 14.4% in the first three months of 2020, per Refinitiv.
"On most earnings calls (companies are) saying this quarter is going to be terrible and they have absolutely no idea what the rest of the year is going to look like," Tuz added. "There are too many uncertainties."
Market leaders Apple Inc AAPL.O and Amazon.com AMZN.O are due to post results after the closing bell.
Facebook Inc FB.O climbed 4.8% after the social media company reported better-than-expected quarterly revenue.
McDonald's Corp MCD.N was off 1.2% after showing a 16.7% quarterly profit slide.
American Airlines AAL.O posted its first quarterly loss since emerging from bankruptcy in 2013, sending its shares down 5.7%.
Declining issues outnumbered advancing ones on the NYSE by a 3.19-to-1 ratio; on Nasdaq, a 3.23-to-1 ratio favored decliners.
The S&P 500 posted 2 new 52-week highs and no new lows; the Nasdaq Composite recorded 19 new highs and 2 new lows.
(Reporting by Stephen Culp; Editing by Dan Grebler)
((stephen.culp@thomsonreuters.com; 646-223-6076;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines AAL.O posted its first quarterly loss since emerging from bankruptcy in 2013, sending its shares down 5.7%. By Stephen Culp NEW YORK, April 30 (Reuters) - U.S. stocks fell on Thursday as grim economic data and mixed earnings prompted investors to take some profits at the close of Wall Street's best month in decades. The five-week tally of unemployment claims topped 30 million and consumer spending has plummeted, according to the latest round of dismal indicators providing another snapshot of the crushing economic effects of the widespread shutdown.
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American Airlines AAL.O posted its first quarterly loss since emerging from bankruptcy in 2013, sending its shares down 5.7%. By Stephen Culp NEW YORK, April 30 (Reuters) - U.S. stocks fell on Thursday as grim economic data and mixed earnings prompted investors to take some profits at the close of Wall Street's best month in decades. The Dow Jones Industrial Average .DJI fell 339.44 points, or 1.38%, to 24,294.42, the S&P 500 .SPX lost 36.3 points, or 1.23%, to 2,903.21 and the Nasdaq Composite .IXIC dropped 60.40 points, or 0.68%, to 8,854.31.
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American Airlines AAL.O posted its first quarterly loss since emerging from bankruptcy in 2013, sending its shares down 5.7%. By Stephen Culp NEW YORK, April 30 (Reuters) - U.S. stocks fell on Thursday as grim economic data and mixed earnings prompted investors to take some profits at the close of Wall Street's best month in decades. The S&P 500 and the Dow were set for their largest monthly percentage gains since January 1987, with the Nasdaq on course for its best month since April 2001.
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American Airlines AAL.O posted its first quarterly loss since emerging from bankruptcy in 2013, sending its shares down 5.7%. By Stephen Culp NEW YORK, April 30 (Reuters) - U.S. stocks fell on Thursday as grim economic data and mixed earnings prompted investors to take some profits at the close of Wall Street's best month in decades. The S&P 500 and the Dow were set for their largest monthly percentage gains since January 1987, with the Nasdaq on course for its best month since April 2001.
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7d9d99ff-34cd-4a00-b8df-cb935df79ffa
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5984.0
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2020-04-30 00:00:00 UTC
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Dow, S&P 500 futures dip at end of strong month; jobless data awaited
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AAL
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https://www.nasdaq.com/articles/dow-sp-500-futures-dip-at-end-of-strong-month-jobless-data-awaited-2020-04-30
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nan
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nan
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By C Nivedita
April 30 (Reuters) - Dow and S&P 500 stock index futures dipped on Thursday as nerves kicked in at the end of an overall strong month for stocks with investors awaiting the weekly jobless claims data, while Nasdaq futures rose after upbeat earnings from Facebook and Tesla.
Historic U.S. monetary and fiscal stimulus and hopes of a revival in business activity as states reopen from lockdowns have powered a Wall Street rally in April, putting the S&P 500 .SPX on course for its best month since 1974.
All three U.S. stock indexes ended Wednesday's session closer to all-time highs reached in February after positive partial data from a trial of Gilead Science Inc's GILD.O antiviral remdesivir showed an improved recovery rate in COVID-19 patients.
Although data is likely to show weekly jobless claims stabilized after scaling record highs in March, other numbers have shown that the U.S. economy is set for its sharpest contraction since the Great Recession.
The Federal Reserve pledged on Wednesday to expand emergency programs to revive growth but dashed hopes for a fast rebound, saying the economy could feel the weight of consumer fear and social distancing for a year.
Facebook Inc FB.O rose 8.6% after beating analysts' estimates for first-quarter revenue and saying it had seen "signs of stability" for ad sales in April after a plunge in March.
Electric car maker Tesla Inc TSLA.O gained 8.5% after posting its third straight quarterly profit, taking investors by surprise as its automaker peers were hit by a slump in consumer demand and factory shutdowns.
Investors will parse through earnings reports from American Airlines AAL.O and McDonald's Corp MCD.N, while the two remaining FAANG stocks - Apple Inc AAPL.O and Amazon.com AMZN.O - will issue results after markets close.
At 06:43 a.m. EDT, Dow e-minis 1YMcv1 were up 25 points, or 0.1%, S&P 500 e-minis EScv1 were down 2.75 points, or 0.09% and Nasdaq 100 e-minis NQcv1 were up 30.5 points, or 0.34%.
SPDR S&P 500 ETFs SPY.P were up 0.29%.
The S&P 500 index .SPX closed up 2.66% at 2,939.51 on Wednesday.
(Reporting by C Nivedita and Shreyashi Sanyal in Bengaluru; Editing by Saumyadeb Chakrabarty)
((C.Nivedita@thomsonreuters.com; within the U.S. +1 646 223 8780, outside the U.S. +91 80 6182 2626; Twitter: @NivCholayil;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Investors will parse through earnings reports from American Airlines AAL.O and McDonald's Corp MCD.N, while the two remaining FAANG stocks - Apple Inc AAPL.O and Amazon.com AMZN.O - will issue results after markets close. All three U.S. stock indexes ended Wednesday's session closer to all-time highs reached in February after positive partial data from a trial of Gilead Science Inc's GILD.O antiviral remdesivir showed an improved recovery rate in COVID-19 patients. The Federal Reserve pledged on Wednesday to expand emergency programs to revive growth but dashed hopes for a fast rebound, saying the economy could feel the weight of consumer fear and social distancing for a year.
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Investors will parse through earnings reports from American Airlines AAL.O and McDonald's Corp MCD.N, while the two remaining FAANG stocks - Apple Inc AAPL.O and Amazon.com AMZN.O - will issue results after markets close. By C Nivedita April 30 (Reuters) - Dow and S&P 500 stock index futures dipped on Thursday as nerves kicked in at the end of an overall strong month for stocks with investors awaiting the weekly jobless claims data, while Nasdaq futures rose after upbeat earnings from Facebook and Tesla. All three U.S. stock indexes ended Wednesday's session closer to all-time highs reached in February after positive partial data from a trial of Gilead Science Inc's GILD.O antiviral remdesivir showed an improved recovery rate in COVID-19 patients.
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Investors will parse through earnings reports from American Airlines AAL.O and McDonald's Corp MCD.N, while the two remaining FAANG stocks - Apple Inc AAPL.O and Amazon.com AMZN.O - will issue results after markets close. By C Nivedita April 30 (Reuters) - Dow and S&P 500 stock index futures dipped on Thursday as nerves kicked in at the end of an overall strong month for stocks with investors awaiting the weekly jobless claims data, while Nasdaq futures rose after upbeat earnings from Facebook and Tesla. All three U.S. stock indexes ended Wednesday's session closer to all-time highs reached in February after positive partial data from a trial of Gilead Science Inc's GILD.O antiviral remdesivir showed an improved recovery rate in COVID-19 patients.
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Investors will parse through earnings reports from American Airlines AAL.O and McDonald's Corp MCD.N, while the two remaining FAANG stocks - Apple Inc AAPL.O and Amazon.com AMZN.O - will issue results after markets close. By C Nivedita April 30 (Reuters) - Dow and S&P 500 stock index futures dipped on Thursday as nerves kicked in at the end of an overall strong month for stocks with investors awaiting the weekly jobless claims data, while Nasdaq futures rose after upbeat earnings from Facebook and Tesla. Historic U.S. monetary and fiscal stimulus and hopes of a revival in business activity as states reopen from lockdowns have powered a Wall Street rally in April, putting the S&P 500 .SPX on course for its best month since 1974.
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445db95f-2866-4920-baaf-4cdb01771fda
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5985.0
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2020-04-30 00:00:00 UTC
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The Coronavirus Has Cost Buffett $1.1 Billion in Annual Dividend Income
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AAL
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https://www.nasdaq.com/articles/the-coronavirus-has-cost-buffett-%241.1-billion-in-annual-dividend-income-2020-04-30
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Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) CEO Warren Buffett may well be the greatest investor of our time. We're talking about someone who first began investing in the stock market at age 11, and who built a roughly $10,000 nest egg in the 1950s into a net worth of $74 billion today. Mind you, this figure would be tens of billions of dollars higher had Buffett not generously donated to charities throughout the years. He's also created nearly $400 billion in value for Berkshire Hathaway's shareholders over the past five-plus decades.
While Buffett's buy-and-hold investment strategy has played a big role in his success, the importance of dividend stocks in Buffett's investment portfolio shouldn't be overlooked.
Berkshire Hathaway CEO Warren Buffett at his company's annual shareholder meeting. Image source: The Motley Fool.
Dividend stocks are a critical component to Buffett's success
Historically, dividend stocks have run circles around their non-dividend-paying peers. This really shouldn't be all that surprising given that dividend stocks are usually profitable and have time-tested business models.
A report from J.P. Morgan Asset Management in 2013 found that companies initiating and growing their dividend between 1972 and 2012 delivered a compound annual return of 9.5%. By comparison, businesses that didn't pay a dividend delivered anemic compound annual gains of 1.6% over this same 40-year period. That's a nearly 500% better annual average return simply by choosing companies that pay a dividend. Typically, around two-thirds of the companies that Berkshire Hathaway owns a stake in will pay a dividend.
Dividend payouts can also be used to partially hedge against inevitable stock market corrections and bear markets. Although dividend yields won't offset big moves lower in the stock market, they can help long-term investors keep a proper mindset during periods of unrest and panic.
For the lay investor, dividend stocks also allow for reinvestment, via a dividend reinvestment plan (DRIP). By purchasing additional shares of stock with your payout, you'll boost your ownership in a presumably profitable and time-tested business, as well as set yourself up for progressively larger dividend payouts over time. This method of compounding wealth is what a lot of successful money managers employ to grow the portfolios of their clients.
Image source: Getty Images.
The coronavirus has reduced Buffett's dividend income by 20%
Earlier this year, I ran the numbers on Berkshire Hathaway's dividend-paying stocks and came up with $4.72 billion as the amount of dividend income Warren Buffett was liable to rake in this year. Keep in mind that this $4.72 billion figure did not include the $800 million in preferred cash dividends that Berkshire Hathaway was to net annually from its $10 billion investment in Occident Petroleum (NYSE: OXY) preferred stock. Thus, inclusive of this preferred stock position, Buffett's company should bring in around $5.5 billion in dividend income.
But this figure was calculated before the coronavirus disease 2019 (COVID-19) completely changed our societal habits and shut down nonessential businesses in most U.S. states. With over 1 million confirmed cases of COVID-19 in the U.S. alone and more than 26 million people losing their jobs in a four-week stretch, Congress and President Trump have had little choice but to offer financial assistance to small businesses, the unemployed, and even distressed industries.
The problem is that some industries simply aren't built to handle the level of disruption brought on by the coronavirus, including the highly cyclical airline, auto, and oil industries. As a result, dividend reductions or suspensions have become the norm of late.
In recent weeks, General Motors (NYSE: GM), American Airlines Group (NASDAQ: AAL), and Delta Air Lines (NYSE: DAL) all announced that they were suspending their dividends. Meanwhile, Occidental Petroleum wound up slashing its payout by 86% (to $0.11 per quarter from $0.78 per quarter), and it was forced to pay Berkshire Hathaway's latest preferred stock payout in common stock as opposed to cash. Though Occidental common stock is better than getting nothing at all, it doesn't offer the guarantee of a cash dividend.
Image source: Getty Images.
How much has this cost Warren Buffett? Here's the annual rundown:
General Motors: $114 million in dividend income
American Airlines: $17 million in dividend income
Delta Air Lines: $94.8 million in dividend income
Occidental Petroleum: $97 million in common stock dividends + $800 million in dividend income from preferred stock holdings
For you math-phobes out there, that's more than $1.1 billion in dividend income now lost, or 20% of what Berkshire Hathaway expected to generate as recently as two months ago.
As part of their bailout deal, airlines like American and Delta won't be able to buy back their stock or pay a dividend for quite some time. Meanwhile, Occidental is reeling from its debt-laden purchase of Anadarko and the greater than 75% cratering in West Texas Intermediate crude oil since the year began. Finally, General Motors shut down production in March and is targeting a May 18 reopening of its U.S. production plants. Whether consumers will be in a car-buying mood next month is a different question. All of these companies absolutely need to conserve cash now, and that's bad news for Buffett.
Image source: Getty Images.
Don't shed a tear for Buffett -- he's still making bank
Then again, don't think you need to shed a tear for the Oracle of Omaha. Even if Berkshire Hathaway only generates $4.4 billion in annual dividend income moving forward, it'll still be yielding 4% annually based on its roughly $110 billion initial cost basis for all of its investments (including the $10 billion Occidental preferred stake).
Many of Buffett's top dividend stocks generate such abundant cash flow that there's virtually no chance of a payout cut in the foreseeable future.
For instance, beverage giant Coca-Cola (NYSE: KO) is on track to generate $656 million in dividend income this year for Berkshire Hathaway. Coca-Cola has the advantage of operating in all but one country worldwide (North Korea), and has more than 20 brands that bring in $1 billion or more in annual revenue. Coca-Cola is also one of the most-recognized brands in the world, which allows it to easily transcend generational gaps. In other words, its dividend is rock-solid, even with COVID-19 spreading globally.
The same could be said for tech giant Apple (NASDAQ: AAPL), which is set to supply Buffett's company with almost $773 million in dividend income this year. Even with an expected slowdown in Apple iPhone sales due to supply chain disruption, we're talking about a company that generated $73.2 billion in operating cash flow over the past 12 months, and that has a cult-like following for new product releases. With Apple also focusing on wearables and services, it'll come through the COVID-19 pandemic just as strong as it was before, if not stronger.
10 stocks we like better than Berkshire Hathaway (B shares)
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Berkshire Hathaway (B shares) wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of April 16, 2020
Sean Williams has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Apple, Berkshire Hathaway (B shares), and Delta Air Lines 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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In recent weeks, General Motors (NYSE: GM), American Airlines Group (NASDAQ: AAL), and Delta Air Lines (NYSE: DAL) all announced that they were suspending their dividends. Although dividend yields won't offset big moves lower in the stock market, they can help long-term investors keep a proper mindset during periods of unrest and panic. For instance, beverage giant Coca-Cola (NYSE: KO) is on track to generate $656 million in dividend income this year for Berkshire Hathaway.
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In recent weeks, General Motors (NYSE: GM), American Airlines Group (NASDAQ: AAL), and Delta Air Lines (NYSE: DAL) all announced that they were suspending their dividends. Keep in mind that this $4.72 billion figure did not include the $800 million in preferred cash dividends that Berkshire Hathaway was to net annually from its $10 billion investment in Occident Petroleum (NYSE: OXY) preferred stock. Here's the annual rundown: General Motors: $114 million in dividend income American Airlines: $17 million in dividend income Delta Air Lines: $94.8 million in dividend income Occidental Petroleum: $97 million in common stock dividends + $800 million in dividend income from preferred stock holdings For you math-phobes out there, that's more than $1.1 billion in dividend income now lost, or 20% of what Berkshire Hathaway expected to generate as recently as two months ago.
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In recent weeks, General Motors (NYSE: GM), American Airlines Group (NASDAQ: AAL), and Delta Air Lines (NYSE: DAL) all announced that they were suspending their dividends. The coronavirus has reduced Buffett's dividend income by 20% Earlier this year, I ran the numbers on Berkshire Hathaway's dividend-paying stocks and came up with $4.72 billion as the amount of dividend income Warren Buffett was liable to rake in this year. Here's the annual rundown: General Motors: $114 million in dividend income American Airlines: $17 million in dividend income Delta Air Lines: $94.8 million in dividend income Occidental Petroleum: $97 million in common stock dividends + $800 million in dividend income from preferred stock holdings For you math-phobes out there, that's more than $1.1 billion in dividend income now lost, or 20% of what Berkshire Hathaway expected to generate as recently as two months ago.
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In recent weeks, General Motors (NYSE: GM), American Airlines Group (NASDAQ: AAL), and Delta Air Lines (NYSE: DAL) all announced that they were suspending their dividends. Berkshire Hathaway CEO Warren Buffett at his company's annual shareholder meeting. Here's the annual rundown: General Motors: $114 million in dividend income American Airlines: $17 million in dividend income Delta Air Lines: $94.8 million in dividend income Occidental Petroleum: $97 million in common stock dividends + $800 million in dividend income from preferred stock holdings For you math-phobes out there, that's more than $1.1 billion in dividend income now lost, or 20% of what Berkshire Hathaway expected to generate as recently as two months ago.
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f7ff2034-4d03-490f-933e-1a73935b262c
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5986.0
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2020-04-30 00:00:00 UTC
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American Airlines posts first quarterly loss since emerging from bankruptcy
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AAL
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https://www.nasdaq.com/articles/american-airlines-posts-first-quarterly-loss-since-emerging-from-bankruptcy-2020-04-30-0
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nan
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nan
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April 30 (Reuters) - American Airlines AAL.O on Thursday posted its first quarterly loss since emerging from bankruptcy in 2013, and said it expects second-quarter cash burn rate to be about $70 million per day, as the COVID-19 pandemic brought travel to a near standstill.
The U.S. airline swung to a net loss of $2.24 billion, or $5.26 per share, for the first quarter ended March 31, compared with a profit of $185 million, or 41 cents per share, a year earlier.
Total operating revenue declined 19.5% to $8.52 billion.
Excluding special items, the company posted a loss of $2.65 per share.
(Reporting by Sanjana Shivdas in Bengaluru; Editing by Shinjini Ganguli)
((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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April 30 (Reuters) - American Airlines AAL.O on Thursday posted its first quarterly loss since emerging from bankruptcy in 2013, and said it expects second-quarter cash burn rate to be about $70 million per day, as the COVID-19 pandemic brought travel to a near standstill. Excluding special items, the company posted a loss of $2.65 per share. (Reporting by Sanjana Shivdas in Bengaluru; Editing by Shinjini Ganguli) ((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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April 30 (Reuters) - American Airlines AAL.O on Thursday posted its first quarterly loss since emerging from bankruptcy in 2013, and said it expects second-quarter cash burn rate to be about $70 million per day, as the COVID-19 pandemic brought travel to a near standstill. The U.S. airline swung to a net loss of $2.24 billion, or $5.26 per share, for the first quarter ended March 31, compared with a profit of $185 million, or 41 cents per share, a year earlier. Excluding special items, the company posted a loss of $2.65 per share.
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April 30 (Reuters) - American Airlines AAL.O on Thursday posted its first quarterly loss since emerging from bankruptcy in 2013, and said it expects second-quarter cash burn rate to be about $70 million per day, as the COVID-19 pandemic brought travel to a near standstill. The U.S. airline swung to a net loss of $2.24 billion, or $5.26 per share, for the first quarter ended March 31, compared with a profit of $185 million, or 41 cents per share, a year earlier. (Reporting by Sanjana Shivdas in Bengaluru; Editing by Shinjini Ganguli) ((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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April 30 (Reuters) - American Airlines AAL.O on Thursday posted its first quarterly loss since emerging from bankruptcy in 2013, and said it expects second-quarter cash burn rate to be about $70 million per day, as the COVID-19 pandemic brought travel to a near standstill. The U.S. airline swung to a net loss of $2.24 billion, or $5.26 per share, for the first quarter ended March 31, compared with a profit of $185 million, or 41 cents per share, a year earlier. Total operating revenue declined 19.5% to $8.52 billion.
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c38c02ac-dbff-4550-883d-b277fadbefca
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5987.0
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2020-04-30 00:00:00 UTC
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American Airlines Posts $2.2 Billion Loss on COVID-19 Woes
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AAL
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https://www.nasdaq.com/articles/american-airlines-posts-%242.2-billion-loss-on-covid-19-woes-2020-04-30
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American Airlines Group (NASDAQ: AAL) lost $2.2 billion in the first quarter as the airline industry was decimated by the COVID-19 pandemic. The company reported quarterly results this morning. The airline is taking steps to cut costs to weather the storm, but will likely need to raise additional capital in the months to come.
Before markets opened Thursday, American said it lost $2.65 per share in the quarter on revenue of $8.52 billion, falling short of consensus expectations for a $2.33-per-share loss on revenue of $8.9 billion. The airline ended the quarter with $6.8 billion in available liquidity, but expects to end the current quarter with $11 billion in cash thanks to government support and other balance sheet preservation efforts.
Image source: American Airlines.
"Never before has our airline, or our industry, faced such a significant challenge," American CEO Doug Parker said in a statement. "We have a lot of difficult work ahead of us. And while there is still uncertainty in what's to come, we are confident that through the dedication of the American Airlines team and our swift actions, we will get through this for our team, our customers and our shareholders."
Investors knew going into the quarterly reporting season that airlines would post significant losses in both the first and second quarter, and are eager to hear what the companies are doing to preserve cash.
American expects to reduce total operational and capital expenditures by $12 billion in 2020, in part by slicing capacity by 80% in both April and May and by 70% in June. The airline is also retiring four aircraft types, including its fleets of Boeing 757s and 767s and Airbus A330-300s, and has suspended marketing and hiring campaigns.
The airline expects to burn through about $70 million in cash per day in the current quarter but hopes to have that rate down to $50 million per day by the end of June. Still, American is likely to seek additional capital in the form of debt or equity in the months to come as management expects a slow recovery even after the pandemic is contained.
10 stocks we like better than American Airlines Group
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and American Airlines Group wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of April 16, 2020
Lou Whiteman 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) lost $2.2 billion in the first quarter as the airline industry was decimated by the COVID-19 pandemic. American expects to reduce total operational and capital expenditures by $12 billion in 2020, in part by slicing capacity by 80% in both April and May and by 70% in June. The airline is also retiring four aircraft types, including its fleets of Boeing 757s and 767s and Airbus A330-300s, and has suspended marketing and hiring campaigns.
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American Airlines Group (NASDAQ: AAL) lost $2.2 billion in the first quarter as the airline industry was decimated by the COVID-19 pandemic. The airline ended the quarter with $6.8 billion in available liquidity, but expects to end the current quarter with $11 billion in cash thanks to government support and other balance sheet preservation efforts. * 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) lost $2.2 billion in the first quarter as the airline industry was decimated by the COVID-19 pandemic. The airline ended the quarter with $6.8 billion in available liquidity, but expects to end the current quarter with $11 billion in cash thanks to government support and other balance sheet preservation efforts. 10 stocks we like better than American Airlines Group When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen.
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American Airlines Group (NASDAQ: AAL) lost $2.2 billion in the first quarter as the airline industry was decimated by the COVID-19 pandemic. The airline ended the quarter with $6.8 billion in available liquidity, but expects to end the current quarter with $11 billion in cash thanks to government support and other balance sheet preservation efforts. The Motley Fool has no position in any of the stocks mentioned.
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b62d756b-6cc1-476a-a446-badb83f3790e
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5988.0
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2020-04-30 00:00:00 UTC
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Glencore slashes 2020 spending, production guidance as coronavirus hits
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AAL
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https://www.nasdaq.com/articles/glencore-slashes-2020-spending-production-guidance-as-coronavirus-hits-2020-04-30-0
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nan
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Adds detail, context
LONDON, April 30 (Reuters) - Glencore GLEN.L on Thursday cut its capital expenditure and production targets in 2020 as the coronavirus worsened the economic outlook and hit its business.
The London-listed miner said spending for the year would fall by $1 billion-$1.5 billion from an original expectation of $5.5 billion.
The coronavirus has routed global markets, disrupted supply chains and forced miners to slow or shut operations as governments introduced measures to curb its spread.
Glencore said copper production in its first quarter fell 9% to 293,000 tonnes compared to the same period a year ago, while cobalt output slid 44% to 6,100 tonnes as it shut its Congo operations.
Government restrictions forced Glencore to shutter some operations in Chad, Peru, Colombia, South Africa and Canada. The miner said it was ramping up operations in Canada and South Africa.
Miners including Antofagasta ANTO.L, Anglo American AAL.L and Freeport-McMoRan FCX.N have also cut capital expenditure due to the coronavirus while Rio Tinto RIO.L cut its forecast for annual copper output.
(Reporting by Zandi Shabalala; editing by David Evans)
((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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Miners including Antofagasta ANTO.L, Anglo American AAL.L and Freeport-McMoRan FCX.N have also cut capital expenditure due to the coronavirus while Rio Tinto RIO.L cut its forecast for annual copper output. Adds detail, context LONDON, April 30 (Reuters) - Glencore GLEN.L on Thursday cut its capital expenditure and production targets in 2020 as the coronavirus worsened the economic outlook and hit its business. The coronavirus has routed global markets, disrupted supply chains and forced miners to slow or shut operations as governments introduced measures to curb its spread.
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Miners including Antofagasta ANTO.L, Anglo American AAL.L and Freeport-McMoRan FCX.N have also cut capital expenditure due to the coronavirus while Rio Tinto RIO.L cut its forecast for annual copper output. Adds detail, context LONDON, April 30 (Reuters) - Glencore GLEN.L on Thursday cut its capital expenditure and production targets in 2020 as the coronavirus worsened the economic outlook and hit its business. The coronavirus has routed global markets, disrupted supply chains and forced miners to slow or shut operations as governments introduced measures to curb its spread.
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Miners including Antofagasta ANTO.L, Anglo American AAL.L and Freeport-McMoRan FCX.N have also cut capital expenditure due to the coronavirus while Rio Tinto RIO.L cut its forecast for annual copper output. The coronavirus has routed global markets, disrupted supply chains and forced miners to slow or shut operations as governments introduced measures to curb its spread. Glencore said copper production in its first quarter fell 9% to 293,000 tonnes compared to the same period a year ago, while cobalt output slid 44% to 6,100 tonnes as it shut its Congo operations.
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Miners including Antofagasta ANTO.L, Anglo American AAL.L and Freeport-McMoRan FCX.N have also cut capital expenditure due to the coronavirus while Rio Tinto RIO.L cut its forecast for annual copper output. Adds detail, context LONDON, April 30 (Reuters) - Glencore GLEN.L on Thursday cut its capital expenditure and production targets in 2020 as the coronavirus worsened the economic outlook and hit its business. The London-listed miner said spending for the year would fall by $1 billion-$1.5 billion from an original expectation of $5.5 billion.
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2edb3da3-bf9c-4d33-acc8-a971abfef988
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5989.0
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2020-04-30 00:00:00 UTC
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American Airlines posts first quarterly loss since emerging from bankruptcy
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AAL
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https://www.nasdaq.com/articles/american-airlines-posts-first-quarterly-loss-since-emerging-from-bankruptcy-2020-04-30
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nan
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nan
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Compares with estimates, adds shares
April 30 (Reuters) - American Airlines AAL.O on Thursday posted a $1.1 billion net loss, its first quarterly loss since emerging from bankruptcy in 2013, and warned of a cash burn of about $70 million a day in the second quarter, as the COVID-19 pandemic brought travel to a near standstill.
Shares rose 1.8% to $12.86 before the bell, as the U.S. airline said it expects to end the second quarter with about $11 billion in liquidity.
Airlines, one of the hardest hit sectors by the pandemic, can expect little from the upcoming summer season, usually a popular travel time, as people remain wary of traveling due to fears of catching coronavirus.
"Never before has our airline, or our industry, faced such a significant challenge," Chief Executive Doug Parker said in a statement.
The pandemic led to the end of the longest expansion in U.S. history, with the nation's economy contracting at its sharpest pace since the Great Recession in the first quarter.
The U.S. airline swung to a net loss of $2.24 billion, or $5.26 per share, for the first quarter ended March 31, compared with a profit of $185 million, or 41 cents per share, a year earlier.
Excluding items, American Airlines posted a loss of $2.65 per share, below analyst's estimates of a loss of $2.33, according to IBES data from Refinitiv.
Total operating revenue declined 19.5% to $8.52 billion.
(Reporting by Sanjana Shivdas in Bengaluru; Editing by Shinjini Ganguli)
((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.
|
Compares with estimates, adds shares April 30 (Reuters) - American Airlines AAL.O on Thursday posted a $1.1 billion net loss, its first quarterly loss since emerging from bankruptcy in 2013, and warned of a cash burn of about $70 million a day in the second quarter, as the COVID-19 pandemic brought travel to a near standstill. "Never before has our airline, or our industry, faced such a significant challenge," Chief Executive Doug Parker said in a statement. The pandemic led to the end of the longest expansion in U.S. history, with the nation's economy contracting at its sharpest pace since the Great Recession in the first quarter.
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Compares with estimates, adds shares April 30 (Reuters) - American Airlines AAL.O on Thursday posted a $1.1 billion net loss, its first quarterly loss since emerging from bankruptcy in 2013, and warned of a cash burn of about $70 million a day in the second quarter, as the COVID-19 pandemic brought travel to a near standstill. The U.S. airline swung to a net loss of $2.24 billion, or $5.26 per share, for the first quarter ended March 31, compared with a profit of $185 million, or 41 cents per share, a year earlier. Excluding items, American Airlines posted a loss of $2.65 per share, below analyst's estimates of a loss of $2.33, according to IBES data from Refinitiv.
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Compares with estimates, adds shares April 30 (Reuters) - American Airlines AAL.O on Thursday posted a $1.1 billion net loss, its first quarterly loss since emerging from bankruptcy in 2013, and warned of a cash burn of about $70 million a day in the second quarter, as the COVID-19 pandemic brought travel to a near standstill. Shares rose 1.8% to $12.86 before the bell, as the U.S. airline said it expects to end the second quarter with about $11 billion in liquidity. The U.S. airline swung to a net loss of $2.24 billion, or $5.26 per share, for the first quarter ended March 31, compared with a profit of $185 million, or 41 cents per share, a year earlier.
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Compares with estimates, adds shares April 30 (Reuters) - American Airlines AAL.O on Thursday posted a $1.1 billion net loss, its first quarterly loss since emerging from bankruptcy in 2013, and warned of a cash burn of about $70 million a day in the second quarter, as the COVID-19 pandemic brought travel to a near standstill. Airlines, one of the hardest hit sectors by the pandemic, can expect little from the upcoming summer season, usually a popular travel time, as people remain wary of traveling due to fears of catching coronavirus. "Never before has our airline, or our industry, faced such a significant challenge," Chief Executive Doug Parker said in a statement.
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82d80db8-ebe6-4b0b-9fa5-f8663ca584bb
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5990.0
|
2020-04-30 00:00:00 UTC
|
American Airlines Slips To Loss In Q1; Stock Down
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AAL
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https://www.nasdaq.com/articles/american-airlines-slips-to-loss-in-q1-stock-down-2020-04-30
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nan
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nan
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(RTTNews) - American Airlines Group Inc. (AAL) reported that its first-quarter net loss was $2.24 billion or $5.26 per share, compared to net income of $185 million or $0.41 per share in the prior year.
In Thursday pre-market trade, AAL is trading at $11.92, down $0.71 or 5.62 percent.
Excluding net special items, first-quarter net loss was $1.13 billion or $2.65 per share, compared to net income of $237 million or $0.52 per share in the prior year. Analysts polled by Thomson Reuters expected the company to report a loss of $2.33 per share. Analysts' estimates typically exclude special items.
Total operating revenues for the quarter decreased to $8.52 billion from $10.58 billion in the previous year. Wall Street analysts had a consensus revenue estimate of $8.94 billion for the quarter.
American estimates a reduction of more than $12 billion in its 2020 operating and capital expenditures, achieved through lower fuel expense and a series of actions.
The company reduced system capacity by approximately 80% in both April and May, and 70% in June.
American said it extended waivers for travel occurring through the end of September 2020, enabling customers to change plans and travel through December 2021. It waived change fees for customers who purchase new tickets by May 31, 2020, for future travel.
It suspended all nonessential hiring, paused noncontractual pay increases, reduced executive and board compensation, and implemented voluntary leave and early retirement programs to reduce labor costs.
The company said it ended first quarter with $6.8 billion of available liquidity and expects to end second quarter with approximately $11 billion of liquidity.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
(RTTNews) - American Airlines Group Inc. (AAL) reported that its first-quarter net loss was $2.24 billion or $5.26 per share, compared to net income of $185 million or $0.41 per share in the prior year. In Thursday pre-market trade, AAL is trading at $11.92, down $0.71 or 5.62 percent. Analysts polled by Thomson Reuters expected the company to report a loss of $2.33 per share.
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(RTTNews) - American Airlines Group Inc. (AAL) reported that its first-quarter net loss was $2.24 billion or $5.26 per share, compared to net income of $185 million or $0.41 per share in the prior year. In Thursday pre-market trade, AAL is trading at $11.92, down $0.71 or 5.62 percent. Excluding net special items, first-quarter net loss was $1.13 billion or $2.65 per share, compared to net income of $237 million or $0.52 per share in the prior year.
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(RTTNews) - American Airlines Group Inc. (AAL) reported that its first-quarter net loss was $2.24 billion or $5.26 per share, compared to net income of $185 million or $0.41 per share in the prior year. In Thursday pre-market trade, AAL is trading at $11.92, down $0.71 or 5.62 percent. Excluding net special items, first-quarter net loss was $1.13 billion or $2.65 per share, compared to net income of $237 million or $0.52 per share in the prior year.
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(RTTNews) - American Airlines Group Inc. (AAL) reported that its first-quarter net loss was $2.24 billion or $5.26 per share, compared to net income of $185 million or $0.41 per share in the prior year. In Thursday pre-market trade, AAL is trading at $11.92, down $0.71 or 5.62 percent. Excluding net special items, first-quarter net loss was $1.13 billion or $2.65 per share, compared to net income of $237 million or $0.52 per share in the prior year.
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8fe4ec41-bdca-46e8-815c-328283634baa
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5991.0
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2020-04-30 00:00:00 UTC
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Wall St set to slide at open after jobless claims data
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AAL
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https://www.nasdaq.com/articles/wall-st-set-to-slide-at-open-after-jobless-claims-data-2020-04-30
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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.
Facebook jumps after upbeat quarterly revenue
Tesla jumps after reporting profitable quarter
U.S. weekly jobless claims remain elevated
McDonald's dips as quarterly profit slides
Futures down: Dow 1.03%, S&P 500 1.01%, Nasdaq 0.35%
Adds comments, details, updates prices throughout
By C Nivedita and Shreyashi Sanyal
April 30 (Reuters) - Wall Street's main indexes were set to open lower on Thursday at the end of a strong month for stock markets globally as a grim U.S. jobless claims report overshadowed upbeat results from Facebook and Tesla.
The Labor Department's report showed initial unemployment claims totaled 3.84 million for the week ended April 25, down from 4.44 million in the previous week and a record 6.87 million in March.
Although the downward trend raised hopes that the coronavirus outbreak's impact on the labor market had peaked, analysts said investors were still wary of the pace of an economic recovery from a looming recession.
"In large part this data is seen as something we've already taken for granted," said Art Hogan, chief market strategist at National Securities in New York.
"We know that the economic data, especially as it pertains to labor, is bad and is going to get worse."
Still, the S&P 500 .SPX is on course for its best month since 1974, powered by dramatic U.S. monetary and fiscal stimulus and hopes of a revival in business activity as states reopen from lockdowns.
All three U.S. stock indexes ended Wednesday's session closer to all-time highs reached in February after positive partial data from a trial of Gilead Science Inc's GILD.O antiviral remdesivir showed an improved recovery rate in COVID-19 patients.
The Federal Reserve pledged on Wednesday to expand emergency programs to revive growth but dashed hopes for a fast rebound, saying the economy could feel the weight of consumer fear and social distancing for a year.
At 9:58 a.m. ET, Dow e-minis 1YMcv1 were down 254 points, or 1.03%, S&P 500 e-minis EScv1 were down 29.75 points, or 1.01% and Nasdaq 100 e-minis NQcv1 were down 31.75 points, or 0.35%.
Analysts forecast a sharper decline in second-quarter corporate earnings, with profits for S&P 500 companies expected to fall 36% following a 15% anticipated drop in the first quarter, according to Refinitiv data.
Facebook Inc FB.O jumped 7.1% in premarket trading after beating analysts' estimates for first-quarter revenue and saying it had seen "signs of stability" for ad sales in April after a plunge in March.
Electric car maker Tesla Inc TSLA.O climbed 7.3% after posting its third straight quarterly profit, taking investors by surprise as its automaker peers were hit by a slump in consumer demand and factory shutdowns.
But Twitter TWTR.N fell 6.3% even as it said ads sales had slightly rebounded in Asia after a plunge due to the coronavirus outbreak and that it had accelerated work on tools to attract key advertisers.
McDonald's Corp MCD.N shed 1.6% after it reported a 16.7% slide in quarterly profit as most of its restaurants across the globe limited their services to deliveries and take-aways.
American Airlines AAL.O fell 6.8% as the airline operator posted its first quarterly loss since emerging from bankruptcy in 2013 and warned of a $70 million a day cash burn.
The two remaining FAANG stocks - Apple Inc AAPL.O and Amazon.com AMZN.O - will report results after markets close.
(Reporting by C Nivedita and Shreyashi Sanyal in Bengaluru; Editing by Saumyadeb Chakrabarty and Anil D'Silva)
((C.Nivedita@thomsonreuters.com; within the U.S. +1 646 223 8780, outside the U.S. +91 80 6182 2626; Twitter: @NivCholayil;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
American Airlines AAL.O fell 6.8% as the airline operator posted its first quarterly loss since emerging from bankruptcy in 2013 and warned of a $70 million a day cash burn. All three U.S. stock indexes ended Wednesday's session closer to all-time highs reached in February after positive partial data from a trial of Gilead Science Inc's GILD.O antiviral remdesivir showed an improved recovery rate in COVID-19 patients. The Federal Reserve pledged on Wednesday to expand emergency programs to revive growth but dashed hopes for a fast rebound, saying the economy could feel the weight of consumer fear and social distancing for a year.
|
American Airlines AAL.O fell 6.8% as the airline operator posted its first quarterly loss since emerging from bankruptcy in 2013 and warned of a $70 million a day cash burn. Facebook jumps after upbeat quarterly revenue Tesla jumps after reporting profitable quarter U.S. weekly jobless claims remain elevated McDonald's dips as quarterly profit slides Futures down: Dow 1.03%, S&P 500 1.01%, Nasdaq 0.35% Adds comments, details, updates prices throughout By C Nivedita and Shreyashi Sanyal April 30 (Reuters) - Wall Street's main indexes were set to open lower on Thursday at the end of a strong month for stock markets globally as a grim U.S. jobless claims report overshadowed upbeat results from Facebook and Tesla. The Labor Department's report showed initial unemployment claims totaled 3.84 million for the week ended April 25, down from 4.44 million in the previous week and a record 6.87 million in March.
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American Airlines AAL.O fell 6.8% as the airline operator posted its first quarterly loss since emerging from bankruptcy in 2013 and warned of a $70 million a day cash burn. Facebook jumps after upbeat quarterly revenue Tesla jumps after reporting profitable quarter U.S. weekly jobless claims remain elevated McDonald's dips as quarterly profit slides Futures down: Dow 1.03%, S&P 500 1.01%, Nasdaq 0.35% Adds comments, details, updates prices throughout By C Nivedita and Shreyashi Sanyal April 30 (Reuters) - Wall Street's main indexes were set to open lower on Thursday at the end of a strong month for stock markets globally as a grim U.S. jobless claims report overshadowed upbeat results from Facebook and Tesla. The Labor Department's report showed initial unemployment claims totaled 3.84 million for the week ended April 25, down from 4.44 million in the previous week and a record 6.87 million in March.
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American Airlines AAL.O fell 6.8% as the airline operator posted its first quarterly loss since emerging from bankruptcy in 2013 and warned of a $70 million a day cash burn. Facebook jumps after upbeat quarterly revenue Tesla jumps after reporting profitable quarter U.S. weekly jobless claims remain elevated McDonald's dips as quarterly profit slides Futures down: Dow 1.03%, S&P 500 1.01%, Nasdaq 0.35% Adds comments, details, updates prices throughout By C Nivedita and Shreyashi Sanyal April 30 (Reuters) - Wall Street's main indexes were set to open lower on Thursday at the end of a strong month for stock markets globally as a grim U.S. jobless claims report overshadowed upbeat results from Facebook and Tesla. The Labor Department's report showed initial unemployment claims totaled 3.84 million for the week ended April 25, down from 4.44 million in the previous week and a record 6.87 million in March.
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30aa1ee7-2e55-455a-9575-327a6502377a
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5992.0
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2020-04-30 00:00:00 UTC
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American Airlines Group Inc Q1 adjusted earnings Miss Estimates
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AAL
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https://www.nasdaq.com/articles/american-airlines-group-inc-q1-adjusted-earnings-miss-estimates-2020-04-30
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nan
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nan
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(RTTNews) - Below are the earnings highlights for American Airlines Group Inc (AAL):
-Earnings: -$2.24 billion in Q1 vs. $0.19 billion in the same period last year. -EPS: -$5.26 in Q1 vs. $0.41 in the same period last year. -Excluding items, American Airlines Group Inc reported adjusted earnings of -$1.13 billion or -$2.65 per share for the period. -Analysts projected -$2.33 per share -Revenue: $8.52 billion in Q1 vs. $10.58 billion in the same period last year.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
(RTTNews) - Below are the earnings highlights for American Airlines Group Inc (AAL): -Earnings: -$2.24 billion in Q1 vs. $0.19 billion in the same period last year. -Excluding items, American Airlines Group Inc reported adjusted earnings of -$1.13 billion or -$2.65 per share for the period. The views and 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) - Below are the earnings highlights for American Airlines Group Inc (AAL): -Earnings: -$2.24 billion in Q1 vs. $0.19 billion in the same period last year. -Excluding items, American Airlines Group Inc reported adjusted earnings of -$1.13 billion or -$2.65 per share for the period. -Analysts projected -$2.33 per share -Revenue: $8.52 billion in Q1 vs. $10.58 billion in the same period last year.
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(RTTNews) - Below are the earnings highlights for American Airlines Group Inc (AAL): -Earnings: -$2.24 billion in Q1 vs. $0.19 billion in the same period last year. -Analysts projected -$2.33 per share -Revenue: $8.52 billion in Q1 vs. $10.58 billion in the same period last year. The views and 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) - Below are the earnings highlights for American Airlines Group Inc (AAL): -Earnings: -$2.24 billion in Q1 vs. $0.19 billion in the same period last year. -Analysts projected -$2.33 per share -Revenue: $8.52 billion in Q1 vs. $10.58 billion in the same period last year. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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2843f918-f7e9-4a08-8bd4-fe9dbf43e2c7
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5993.0
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2020-04-29 00:00:00 UTC
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BA parent bets on cost cuts, not government, to survive coronavirus crisis
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AAL
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https://www.nasdaq.com/articles/ba-parent-bets-on-cost-cuts-not-government-to-survive-coronavirus-crisis-2020-04-29
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nan
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nan
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By Sarah Young
LONDON, April 29 (Reuters) - IAG's ICAG.L move to axe up to 12,000 jobs at its main British Airways business reflects boss Willie Walsh's preference to slash costs rather than seek a state bailout to survive what is expected to be the worst downturn in aviation history.
The veteran executive is betting that once the coronavirus crisis is over, IAG will be in a better position to thrive than rivals that might be beholden to politicians.
History is on his side, as IAG has reaped the rewards of past cost cutting that many competitors have struggled to match, sometimes due to government interference. However, Walsh will likely face his own challenges from politicians and labour unions, given the scale of the latest job reductions.
"The focus here is to make sure they're as best placed (as possible) for the recovery. They were a stronger airline going in to this crisis, they want to be even stronger going out," Davy analyst Stephen Furlong said.
IAG said late Tuesday British Airways could make up to a quarter of its 45,000 staff redundant as it forecast passenger numbers would take years to recover from the crisis sparked by the coronavirus pandemic.
Draconian restrictions on travel have brought flying to a near-halt and there is no end in sight for when it can restart, bringing airlines across the world to their knees and leaving many begging governments for rescue packages.
Thanks to its stronger finances heading into the crisis, IAG has not had to seek a government rescue so far. In any case, BA said on Tuesday there was "no government bailout standing by."
But to cope with potentially months of disruption, Walsh believes IAG needs to cut costs as far as possible.
The former pilot has built his reputation by dragging old-fashioned airlines into the modern age of budget flying. That has usually involved cutting costs and taking on labour unions, earning him the nickname of "slasher Walsh".
He had been due to retire in March, but decided to stay on when the crisis struck.
Competitors such as Franco-Dutch group Air France-KLM AIRF.PA and Germany's Lufthansa LHAG.DE were already struggling to cut costs as much as IAG even before they sought bailouts from their governments.
With their rescue packages set to increase state influence, they may find it even harder to compete with a lean IAG.
On the other side of the Atlantic, U.S. airlines American Airlines Group Inc AAL.O, United Airlines Holdings Inc UAL.O and Delta Air Lines Inc DAL.N are all being helped by a $25 billion government rescue package.
CASH RICH
IAG's strong balance sheet, described by one analyst as a "fortress", means it can afford a longer hiatus in flying than many other airlines.
The group, whose airlines also include Aer Lingus, Iberia and Vueling, said on Tuesday it had liquidity of 9.5 billion euros ($10.3 billion). That compares with Lufthansa's 5.1 billion euros and Air France-KLM's 6 billion, according to Bernstein analysts.
"(This) gives some reassurance to investors that IAG will be one of the survivors and possible long-term beneficiaries of this current crisis," Goodbody analyst Mark Simpson said.
Lufthansa said on Tuesday it could seek some form of protection from creditors while talking to the German government about a 9 billion euro rescue, while Air France-KLM has been buoyed by a 7 billion euro state-backed package from France, with another 2.4 billion pledged by the Dutch.
IAG is targeting BA for cost cuts because it is the highest cost airline in the group, Davy's Furlong said.
"If there was somewhere where there needed to be an arrest of cash outflow it would be BA," he said.
The job cuts, which are subject to union consultation, are one of a number of steps to drive down costs. IAG has already cancelled its dividend, extended credit facilities, and used government furlough schemes to help pay staff while planes are not flying.
The group could in future also choose to access coronavirus-related government lending schemes.
BA's 45,000 employees, according to its website, include 16,500 cabin crew and 3,900 pilots. A BA-based source said that job cuts were more likely among cabin crew, some of whom remain on historic higher cost contracts compared to newer staff.
IAG shares were down around 1.8% on Wednesday, having lost almost two-thirds of their value over the past three months.
($1 = 0.9218 euros)
FACTBOX-Airlines lay off staff to cope with coronavirus crisis
(Reporting by Sarah Young, editing by Louise Heavens and Mark Potter)
((sarah.young@thomsonreuters.com; +44 20 7542 1109; Reuters Messaging: sarah.young.thomsonreuters@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
On the other side of the Atlantic, U.S. airlines American Airlines Group Inc AAL.O, United Airlines Holdings Inc UAL.O and Delta Air Lines Inc DAL.N are all being helped by a $25 billion government rescue package. By Sarah Young LONDON, April 29 (Reuters) - IAG's ICAG.L move to axe up to 12,000 jobs at its main British Airways business reflects boss Willie Walsh's preference to slash costs rather than seek a state bailout to survive what is expected to be the worst downturn in aviation history. IAG said late Tuesday British Airways could make up to a quarter of its 45,000 staff redundant as it forecast passenger numbers would take years to recover from the crisis sparked by the coronavirus pandemic.
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On the other side of the Atlantic, U.S. airlines American Airlines Group Inc AAL.O, United Airlines Holdings Inc UAL.O and Delta Air Lines Inc DAL.N are all being helped by a $25 billion government rescue package. Competitors such as Franco-Dutch group Air France-KLM AIRF.PA and Germany's Lufthansa LHAG.DE were already struggling to cut costs as much as IAG even before they sought bailouts from their governments. That compares with Lufthansa's 5.1 billion euros and Air France-KLM's 6 billion, according to Bernstein analysts.
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On the other side of the Atlantic, U.S. airlines American Airlines Group Inc AAL.O, United Airlines Holdings Inc UAL.O and Delta Air Lines Inc DAL.N are all being helped by a $25 billion government rescue package. Lufthansa said on Tuesday it could seek some form of protection from creditors while talking to the German government about a 9 billion euro rescue, while Air France-KLM has been buoyed by a 7 billion euro state-backed package from France, with another 2.4 billion pledged by the Dutch. IAG is targeting BA for cost cuts because it is the highest cost airline in the group, Davy's Furlong said.
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On the other side of the Atlantic, U.S. airlines American Airlines Group Inc AAL.O, United Airlines Holdings Inc UAL.O and Delta Air Lines Inc DAL.N are all being helped by a $25 billion government rescue package. IAG is targeting BA for cost cuts because it is the highest cost airline in the group, Davy's Furlong said. BA's 45,000 employees, according to its website, include 16,500 cabin crew and 3,900 pilots.
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cc9d472a-4663-4655-88a8-4eac49172432
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5994.0
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2020-04-29 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-2020-04-29
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nan
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nan
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What happened
Many airline stocks have lost more than half of their value this year, as the COVID-19 pandemic has caused global air travel demand to evaporate and left carriers scrambling to cut costs to survive. The stocks have been trading as if bankruptcies were inevitable.
While the pandemic is far from contained, airline investors in recent days are beginning to gain confidence that the worst-case scenarios that have driven stocks to multiyear lows can be avoided.
Shares of American Airlines Group (NASDAQ: AAL), United Airlines Holdings (NASDAQ: UAL), Delta Air Lines (NYSE: DAL), JetBlue Airways (NASDAQ: JBLU), Hawaiian Holdings (NASDAQ: HA), and Spirit Airlines (NYSE: SAVE) all climbed more than 10% on Wednesday morning thanks to that growing sense of optimism.
So what
We are in the middle of airline earning season, but there is no real news to tie to any of the carriers that are surging. Instead the move appears tied to an overall improvement in market sentiment, tied to some states taking initial steps to lift COVID-19 pandemic restrictions and begin the process of reopening.
Image source: Getty Images.
The airlines are going to feel the impact of the pandemic for some time to come, with carriers bringing down capacity by upwards of 90% in the second quarter. But that's already priced into the stocks, and thanks to a $50 billion U.S. government bailout, the airlines have ample liquidity to ride out the near-term storm.
Of course, that bailout money will last only so long, and since the government came through with the funds, the focus has been on how long travel demand will remain at depressed levels. The industry came into this downturn relatively healthy, and the airlines should be able to survive at more typical recessionary demand levels, so the United States pushing to normalize would be an important step in the airline industry's recovery.
Airlines year to date data by YCharts
Investors will learn more in the days to come, as American and United will report first-quarter results and discuss their outlooks for the second half of 2020. Based on the results from Delta and Southwest Airlines (NYSE: LUV), the first-quarter losses might be less than anticipated.
Now what
It's hard to get too excited about this rally, because the stocks are still down significantly for the year. But it is worth noting that stocks like United and Spirit were down more than 75% for the year just last month, so it appears market sentiment has at least stabilized for now.
The airlines even in the best-case scenario face a difficult course ahead. Even as flights resume, there could be continued restrictions on international travel, or changes to cabins to promote separation, that could eat into revenue. Overall, it seems likely it will take at least three years, and perhaps upwards of five years, for travel demand to come back to prepandemic levels.
Investors should remain cautious, especially when it comes to airlines more vulnerable in a downturn. For example, American Airlines has the industry's highest debt burden, while Hawaiian has a niche network and high costs due to its emphasis on trans-Pacific flying, and it relies on demand for travel to an expensive destination. Meanwhile JetBlue, before the pandemic, was attempting to attract customers willing to pay more for added amenities, a difficult sale in a recession.
It is going to take a while for this sector, and the stocks, to fully recover, but investors willing to patiently wait out the next few quarters could be richly rewarded. I'd advise sticking to top operators like Delta, Southwest, and Alaska Air Group (NYSE: ALK) instead of buying some of the riskier names.
10 stocks we like better than JetBlue Airways
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David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and JetBlue Airways wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
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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 American Airlines Group (NASDAQ: AAL), United Airlines Holdings (NASDAQ: UAL), Delta Air Lines (NYSE: DAL), JetBlue Airways (NASDAQ: JBLU), Hawaiian Holdings (NASDAQ: HA), and Spirit Airlines (NYSE: SAVE) all climbed more than 10% on Wednesday morning thanks to that growing sense of optimism. What happened Many airline stocks have lost more than half of their value this year, as the COVID-19 pandemic has caused global air travel demand to evaporate and left carriers scrambling to cut costs to survive. While the pandemic is far from contained, airline investors in recent days are beginning to gain confidence that the worst-case scenarios that have driven stocks to multiyear lows can be avoided.
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Shares of American Airlines Group (NASDAQ: AAL), United Airlines Holdings (NASDAQ: UAL), Delta Air Lines (NYSE: DAL), JetBlue Airways (NASDAQ: JBLU), Hawaiian Holdings (NASDAQ: HA), and Spirit Airlines (NYSE: SAVE) all climbed more than 10% on Wednesday morning thanks to that growing sense of optimism. 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), United Airlines Holdings (NASDAQ: UAL), Delta Air Lines (NYSE: DAL), JetBlue Airways (NASDAQ: JBLU), Hawaiian Holdings (NASDAQ: HA), and Spirit Airlines (NYSE: SAVE) all climbed more than 10% on Wednesday morning thanks to that growing sense of optimism. 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), United Airlines Holdings (NASDAQ: UAL), Delta Air Lines (NYSE: DAL), JetBlue Airways (NASDAQ: JBLU), Hawaiian Holdings (NASDAQ: HA), and Spirit Airlines (NYSE: SAVE) all climbed more than 10% on Wednesday morning thanks to that growing sense of optimism. Overall, it seems likely it will take at least three years, and perhaps upwards of five years, for travel demand to come back to prepandemic levels. The Motley Fool recommends Alaska Air Group, Hawaiian Holdings, and JetBlue Airways.
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2020-04-29 00:00:00 UTC
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American Airlines Stock Is Still a Long-Term Winner
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AAL
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https://www.nasdaq.com/articles/american-airlines-stock-is-still-a-long-term-winner-2020-04-29
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Several upbeat comments by Southwest Airlines (NYSE:LUV), which reported its first-quarter results yesterday, bode well for the longer-term outlook of American Airlines (NYSE:AAL) stock. Southwest’s comments are also positive for all airlines in the U.S.
Source: Carlos E. Santa Maria / Shutterstock.com
During Southwest’s Q1 earnings conference call, Southwest CEO Gary Kelly said “it feels like” the company’s revenue trends “bottomed out the first week of April.” He added that “we’ve seen very gradual improvement in weeks two and three [of April].” Kelly said he was hopeful that revenue trends would continue to rebound in May.
The CEO appeared to hold out hope that June will rebound meaningfully from a revenue standpoint, saying “we’ve got pretty modest expectations … for June at this point. And hopefully we’re too pessimistic there.” The CEO added that, “hopefully by July, August, we’re beginning to see some improvement that would encourage us” and help Southwest’s management determine how to proceed going forward.
So Kelly did not rule out the possibility of a significant recovery in the summer. That’s certainly good news for American Airlines and AAL stock.
9 Stocks to Buy to Weather the Recession
When American Airlines reports its Q1 results tomorrow, it will obviously be very important to see whether American’s CEO, Doug Parker, also indicates that the airline’s revenue appears to have bottomed. Of course, such a statement would be very positive for American Airlines and the company’s stock.
States’ Openings Are Positive for American Airlines
In his statements yesterday, Kelly, Southwest’s CEO, indicated that airlines will benefit from the lifting of closures enacted in response to Covid-19. In several recent columns about airline stocks, I’ve expressed the idea that demand for airplane tickets will increase when states reopen, giving travelers fun and interesting things to do when they arrive at their destinations.
Kelly expressed that notion as well, saying “for those who are willing and able to travel, the country needs to open back up. So there’s something for people to do when they get there.”
So it’s certainly positive for American Airlines and its peers that, in recent days, multiple states have started opening their economies. Texas, Oklahoma, Ohio, Arkansas, Mississippi and Tennessee are among the states that either have or will soon reopen much of their economies. Further, many beaches in Florida are now accessible, and New York Governor Andrew Cuomo has indicated that he would soon reopen parts of upstate New York.
Gilead’s Drug May Make a Big Difference for American Airlines
Today, Gilead (NASDAQ:GILD) announced that its drug, remdesivir, had met its primary endpoint in a clinical trial (with a control group) that was being supervised by the National Institute for Allergy and Infectious Diseases. In other words, the study showed that the drug had a meaningful, positive impact on coronavirus patients.
Further, a study released by Gilead showed that over 90% of the 397 patients who received its drug survived after two weeks. Moreover, 235 of the patients exhibited “clinical recovery.” Importantly, before receiving remdesivir, all of the patients showed “evidence of pneumonia” and had “reduced oxygen levels.”
Even if 100 of the 162 patients who did not exhibit clinical recovery after two weeks ultimately died, nearly 75% of the patients who had severe Covid-19 and received the drug will have survived. I think that indicates that the drug is effective and will significantly lower the case fatality rate of the virus, which currently stands at at 5.7% in the U.S.
In any case, the fact that there is a viable treatment for the virus should greatly lower fear of the illness, reducing trepidation about traveling and greatly helping American Airlines and other airlines.
The Bottom Line on AAL Stock
It won’t be all smooth sailing for the airlines going forward. Southwest’s CEO said that the company’s operating revenue is still down 90%-95% year-over-year for April and May, while its airplanes are flying more than 90% empty.
But the fact that Southwest’s revenue already appears to have bottomed is huge news. With more states opening their economies and estimates of the virus’ fatality rate already falling and likely to drop further based on the success of Gilead’s drug, fear of the virus is declining and will show additional easing soon. As a result, many more people will soon be ready to fly.
Moreover, the opening of many states’ economies is a meaningful, positive development for AAL stock. Given all these trends, I recommend that longer-term investors buy the shares.
As of this writing, Larry Ramer owned shares of GILD stock. 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 American Airlines Stock Is Still a Long-Term Winner 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 Several upbeat comments by Southwest Airlines (NYSE:LUV), which reported its first-quarter results yesterday, bode well for the longer-term outlook of American Airlines (NYSE:AAL) stock. That’s certainly good news for American Airlines and AAL stock. The Bottom Line on AAL Stock It won’t be all smooth sailing for the airlines going forward.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Several upbeat comments by Southwest Airlines (NYSE:LUV), which reported its first-quarter results yesterday, bode well for the longer-term outlook of American Airlines (NYSE:AAL) stock. That’s certainly good news for American Airlines and AAL stock. The Bottom Line on AAL Stock It won’t be all smooth sailing for the airlines going forward.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Several upbeat comments by Southwest Airlines (NYSE:LUV), which reported its first-quarter results yesterday, bode well for the longer-term outlook of American Airlines (NYSE:AAL) stock. That’s certainly good news for American Airlines and AAL stock. The Bottom Line on AAL Stock It won’t be all smooth sailing for the airlines going forward.
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Moreover, the opening of many states’ economies is a meaningful, positive development for AAL stock. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Several upbeat comments by Southwest Airlines (NYSE:LUV), which reported its first-quarter results yesterday, bode well for the longer-term outlook of American Airlines (NYSE:AAL) stock. That’s certainly good news for American Airlines and AAL stock.
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2020-04-29 00:00:00 UTC
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Wait For Another Pullback Before Buying American Airlines
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AAL
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https://www.nasdaq.com/articles/wait-for-another-pullback-before-buying-american-airlines-2020-04-30
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
[Editor’s Note: “Wait For Another Pullback Before Buying AAL Stock” was originally published April 22, 2020. It is regularly updated to include the most relevant information.]
Source: GagliardiPhotography / Shutterstock.com
I don’t have to tell how bad the novel coronavirus pandemic has been for American Airlines (NASDAQ:AAL). Since the outbreak first hit China, AAL stock has cratered from around $30 per share to around $11.00 per share at the close April 21. But, could a low share price mean a solid “bottom-fishing” opportunity?
It depends. Shares today may look ripe as a contrarian buy, but keep in mind the many fleas on this legacy carrier. Even before the pandemic affected air travel.
As I previously discussed, American Airlines already had a heavy debt load and other operating issues.
And despite the company receiving $5.8 billion in payroll support from the recent $2 trillion CARES Act stimulus package, they could burn through billions more as the airline industry remains effectively grounded.
The worst of the coronavirus in America may already be over. But, it’s a long road ahead before American Airlines shares could start rebounding again. With this in mind, today’s prices may not be enough to justify a buy in the near-term.
7 Stocks That Still Need Greater Government Stimulus
Yet, that doesn’t completely rule out American Airlines as a buy at lower prices. Let’s dive in, and see why a “wait-and-see” approach may be the best way to play this hard-hit airline stock.
Slow Recovery Means More Bad News for AAL Stock
Things may be starting to “return to normal.” But, don’t take that to mean smooth sailing ahead for the U.S. economy. The damage caused by the pandemic and its associated shutdowns could linger on throughout the year. And that’s especially the case for the airline industry.
There are many reasons why the stimulus package is far from being a “silver bullet” for American and the other airlines. Firstly, airlines have many other fixed costs they need to cover, not just payroll. Secondly, it doesn’t matter how much money the U.S. Treasury throws at the airline industry: the main issue is sustained declines in passenger traffic.
As this Barron’s article recently discussed, American Airlines plans to run flights at half-capacity in order to ensure passenger safety. This may be an improvement from the 90% year-over-year declines in air travel compared to last year. But it does highlight how air traffic could remain far below the high water mark, even after the pandemic is in the rearview mirror.
If the air travel market remains depressed, what’s to say the airlines won’t need CARES Act 2.0? With these concerns top of mind, it’s tough to be confident in the near-term prospects for American.
Darkest Before the Dawn?
Things sound bleak for American Airlines. Yet, with the share price bouncing up again from around $10 per share, the stock could be bottoming out. Buying while the stimulus package was underway in late March would have been a terrible time to enter a position. The stock soared from around $10 per share to prices above $16 per share. At that price level, the risk/return proposition is not in your favor.
But, if shares retest prices in the single-digits, the odds are on your side. As InvestorPlace’s Tom Taulli wrote last month, it’s unlikely American Airlines files for bankruptcy because of coronavirus. This could mean the downside risk is not as bad as one would assume.
Couple this with the potential for big gains in the next few years if air travel rebounds quicker than anticipated, and this looks like a great setup. In short, don’t chase this stock if enthusiasm sends it higher on a breadcrumb of good news. Instead, consider shares a buy if additional negative developments push shares below their prior 52-week low.
Wait-and-See Is the Key With American Airlines
When I last wrote about American Airlines stock, I said it was too early to buy but too late to go short. I stand behind this take. The risk of shares rallying on better-than-expected data makes it tough to bet this stock heads below the most bearish of price targets.
Nevertheless, don’t see this to mean, “go buy American, pronto.” Shares have started to move higher, in anticipation of “shelter-in-place” coming to an end. But tough times are set to continue for the airline industry. Continued diminished air travel through 2020 could mean additional trouble for the airline.
Yet, large-scale bankruptcies are the last thing the current administration wants. Especially in a re-election year. With this in mind, the downside may be lower than one would expect for a hard-hit sector like airlines.
Bottom line: wait for American Airlines shares to head lower before entering a position. At prices between $5 and $10 per share, the potential price appreciation more than makes up for the risk.
Thomas Niel, contributor to InvestorPlace, has written single-stock analysis since 2016. As of this writing, Thomas Niel did not hold a position in any of the aforementioned securities.
The post Wait For Another Pullback Before Buying American Airlines appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips [Editor’s Note: “Wait For Another Pullback Before Buying AAL Stock” was originally published April 22, 2020. Source: GagliardiPhotography / Shutterstock.com I don’t have to tell how bad the novel coronavirus pandemic has been for American Airlines (NASDAQ:AAL). Since the outbreak first hit China, AAL stock has cratered from around $30 per share to around $11.00 per share at the close April 21.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips [Editor’s Note: “Wait For Another Pullback Before Buying AAL Stock” was originally published April 22, 2020. Source: GagliardiPhotography / Shutterstock.com I don’t have to tell how bad the novel coronavirus pandemic has been for American Airlines (NASDAQ:AAL). Since the outbreak first hit China, AAL stock has cratered from around $30 per share to around $11.00 per share at the close April 21.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips [Editor’s Note: “Wait For Another Pullback Before Buying AAL Stock” was originally published April 22, 2020. Source: GagliardiPhotography / Shutterstock.com I don’t have to tell how bad the novel coronavirus pandemic has been for American Airlines (NASDAQ:AAL). Since the outbreak first hit China, AAL stock has cratered from around $30 per share to around $11.00 per share at the close April 21.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips [Editor’s Note: “Wait For Another Pullback Before Buying AAL Stock” was originally published April 22, 2020. Source: GagliardiPhotography / Shutterstock.com I don’t have to tell how bad the novel coronavirus pandemic has been for American Airlines (NASDAQ:AAL). Since the outbreak first hit China, AAL stock has cratered from around $30 per share to around $11.00 per share at the close April 21.
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5997.0
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2020-04-28 00:00:00 UTC
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S. Africa mining firms work together against COVID-19 as mines reopen
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AAL
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https://www.nasdaq.com/articles/s.-africa-mining-firms-work-together-against-covid-19-as-mines-reopen-2020-04-28
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JOHANNESBURG, April 28 (Reuters) - South African mining companies are setting up shared quarantine facilities for miners testing positive for COVID-19 and are discussing other ways to cooperate, as the vital national industry gradually restarts operations halted since late March.
President Cyril Ramaphosa agreed last week to partially ease a national lockdown that temporarily shut all mines, except for some production of coal, the main fuel used for power generation in Africa's most industrialised nation.
All mines can resume activities from May 1 under regulations to ease the lockdown, gradually resuming work in an industry that accounts for 8% of South Africa's economic output and employs about 500,000 people.
The new rules allow coal mines and open cast mines, also known as open pit mines, to resume full operations, while underground mines can only operate at 50% capacity to make it easier to maintain social distancing, the Minerals Council said.
Sibanye Stillwater SSWJ.J, AngloGold Ashanti ANGJ.J, Harmony Gold HARJ.J, Gold Fields GFIJ.J have already turned to social media, radio stations and newspapers to offer guidance to employees on how to prevent the coronavirus spreading.
Sibanye said it was converting some of its worker hostels in Westrand, the Free State and Rustenburg into quarantine facilities and would make them available to employees of other companies who had been diagnosed with the virus.
"We are partnering with AngloGold and Harmony to share hostel facilities," James Wellsted, Sibanye's senior vice president of investor relations, told an online media briefing.
The briefing was organised by the Minerals Council of South Africa, a group representing the country's top mining firms.
AngloGold Ashanti's group health vice president, Bafedile Chauke, said mining firms were discussing other ways to work with each other to ensure the health and safety of employees returning to work.
AngloGold is already partnering with petrochemicals major Sasol SOLJ.J to increase production of sanitisers and has offered to share the cost of manufacturing bulk storage tanks for sanitiser.
(Reporting by Promit Mukherjee; Editing by Edmund Blair)
((promit.mukherjee@thomsonreuters.com; +27-648334448; Reuters Messaging: promit.mukherjee.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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JOHANNESBURG, April 28 (Reuters) - South African mining companies are setting up shared quarantine facilities for miners testing positive for COVID-19 and are discussing other ways to cooperate, as the vital national industry gradually restarts operations halted since late March. Sibanye said it was converting some of its worker hostels in Westrand, the Free State and Rustenburg into quarantine facilities and would make them available to employees of other companies who had been diagnosed with the virus. "We are partnering with AngloGold and Harmony to share hostel facilities," James Wellsted, Sibanye's senior vice president of investor relations, told an online media briefing.
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Sibanye Stillwater SSWJ.J, AngloGold Ashanti ANGJ.J, Harmony Gold HARJ.J, Gold Fields GFIJ.J have already turned to social media, radio stations and newspapers to offer guidance to employees on how to prevent the coronavirus spreading. "We are partnering with AngloGold and Harmony to share hostel facilities," James Wellsted, Sibanye's senior vice president of investor relations, told an online media briefing. AngloGold Ashanti's group health vice president, Bafedile Chauke, said mining firms were discussing other ways to work with each other to ensure the health and safety of employees returning to work.
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JOHANNESBURG, April 28 (Reuters) - South African mining companies are setting up shared quarantine facilities for miners testing positive for COVID-19 and are discussing other ways to cooperate, as the vital national industry gradually restarts operations halted since late March. The new rules allow coal mines and open cast mines, also known as open pit mines, to resume full operations, while underground mines can only operate at 50% capacity to make it easier to maintain social distancing, the Minerals Council said. AngloGold Ashanti's group health vice president, Bafedile Chauke, said mining firms were discussing other ways to work with each other to ensure the health and safety of employees returning to work.
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All mines can resume activities from May 1 under regulations to ease the lockdown, gradually resuming work in an industry that accounts for 8% of South Africa's economic output and employs about 500,000 people. "We are partnering with AngloGold and Harmony to share hostel facilities," James Wellsted, Sibanye's senior vice president of investor relations, told an online media briefing. The briefing was organised by the Minerals Council of South Africa, a group representing the country's top mining firms.
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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 on outlook
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AAL
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https://www.nasdaq.com/articles/southwest-posts-first-quarterly-loss-in-9-years-and-warns-on-outlook-2020-04-28
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By Tracy Rucinski
April 28 (Reuters) - Southwest Airlines Co LUV.N on Tuesday posted a $94 million quarterly net loss, its first in nine years, and warned of drastic revenue drops ahead as it sought to raise another $2.6 billion to help weather the coronavirus pandemic.
Its shares were down 2.3% to $28.45 in premarket trading after it announced a public stock offering of 55 million shares, worth around $1.6 billion at Monday’s closing price of $29.11, and $1 billion worth of convertible debt.
The COVID-19 crisis has decimated travel demand, with an unprecedented number of flight cancellations in the second half of March, forcing airlines to preserve and raise cash.
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 fell 17.8% to $4.2 billion. It sees operating revenue falling by 90-95% 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 CEO Gary Kelly told Reuters.
The coronavirus outbreak has led to the deaths of more than 207,000 people, including more than 55,000 in the United States, a Reuters tally shows.
Stay-at-home orders remain across 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 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 and Jason Neely)
((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 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 on Tuesday posted a $94 million quarterly net loss, its first in nine years, and warned of drastic revenue drops ahead as it sought to raise another $2.6 billion to help weather the coronavirus pandemic. The COVID-19 crisis has decimated travel demand, with an unprecedented number of flight cancellations in the second half of March, forcing airlines to preserve and raise cash.
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Delta Air Lines Inc DAL.N posted a first-quarter loss last week and 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 on Tuesday posted a $94 million quarterly net loss, its first in nine years, and warned of drastic revenue drops ahead as it sought to raise another $2.6 billion to help weather the coronavirus pandemic. 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 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 on Tuesday posted a $94 million quarterly net loss, its first in nine years, and warned of drastic revenue drops ahead as it sought to raise another $2.6 billion to help weather the coronavirus pandemic. 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 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 on Tuesday posted a $94 million quarterly net loss, its first in nine years, and warned of drastic revenue drops ahead as it sought to raise another $2.6 billion to help weather the coronavirus pandemic. Excluding special items, the loss was $77 million, or a $0.15 loss per share.
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2020-04-28 00:00:00 UTC
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JetBlue Will Require Airline Passengers to Wear Masks
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AAL
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https://www.nasdaq.com/articles/jetblue-will-require-airline-passengers-to-wear-masks-2020-04-28
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Beginning Monday, May 4, JetBlue Airways (NASDAQ: JBLU) passengers will be required to wear face coverings from the beginning of the check-in process all the way through deplaning. JetBlue is among a group of airlines that have initiated personal protective equipment (PPE) policies to address operating during the ongoing pandemic.
Last week, United Airlines Holdings (NASDAQ: UAL) announced it would require its flight attendants to wear face coverings while on duty. The Association of Flight Attendants (AFA) union supported the plan, but asked federal authorities to include passengers in the requirement. JetBlue had already required its flight attendants wear face coverings while working.
Image source: Getty Images.
American Airlines Group (NASDAQ: AAL) separately announced new cleaning procedures, and said it would be offering PPE to passengers, including sanitizing wipes or gels, as well as face masks, beginning in early May. The airline will require its flight attendants wear face coverings on every mainline and regional flight starting May 1, 2020. American also said it has added a drawer in the galley on mainline flights to specifically hold masks and sanitizing wipes.
Airlines are aiming to enhance the safety as well as provide passengers with more peace of mind in trying to attract customers back. New practices will include revised seating arrangements to allow for distancing, and revamped cleaning practices. American has detailed procedures of "more thorough cleaning, more often," and JetBlue said it has "increased the rigor of its aircraft cleanings at night and between flights."
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
Howard Smith has no position in any of the stocks mentioned. The Motley Fool recommends JetBlue Airways. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines Group (NASDAQ: AAL) separately announced new cleaning procedures, and said it would be offering PPE to passengers, including sanitizing wipes or gels, as well as face masks, beginning in early May. Last week, United Airlines Holdings (NASDAQ: UAL) announced it would require its flight attendants to wear face coverings while on duty. The Association of Flight Attendants (AFA) union supported the plan, but asked federal authorities to include passengers in the requirement.
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American Airlines Group (NASDAQ: AAL) separately announced new cleaning procedures, and said it would be offering PPE to passengers, including sanitizing wipes or gels, as well as face masks, beginning in early May. Beginning Monday, May 4, JetBlue Airways (NASDAQ: JBLU) passengers will be required to wear face coverings from the beginning of the check-in process all the way through deplaning. Last week, United Airlines Holdings (NASDAQ: UAL) announced it would require its flight attendants to wear face coverings while on duty.
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American Airlines Group (NASDAQ: AAL) separately announced new cleaning procedures, and said it would be offering PPE to passengers, including sanitizing wipes or gels, as well as face masks, beginning in early May. Beginning Monday, May 4, JetBlue Airways (NASDAQ: JBLU) passengers will be required to wear face coverings from the beginning of the check-in process all the way through deplaning. The airline will require its flight attendants wear face coverings on every mainline and regional flight starting May 1, 2020.
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American Airlines Group (NASDAQ: AAL) separately announced new cleaning procedures, and said it would be offering PPE to passengers, including sanitizing wipes or gels, as well as face masks, beginning in early May. The airline will require its flight attendants wear face coverings on every mainline and regional flight starting May 1, 2020. The Motley Fool recommends JetBlue Airways.
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