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Tag: LUV

  • Boeing’s financials won’t be hurt by latest 737 Max issues, analysts say. The company’s size is one reason.

    Boeing’s financials won’t be hurt by latest 737 Max issues, analysts say. The company’s size is one reason.

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    Alaska Airlines, United Airlines and Turkish Airlines have all grounded their Boeing 737 Max 9 airplanes after part of one such jet tore away during an Alaska Airlines flight on Friday. But despite the potential safety risks for travelers and further damage to Boeing’s
    BA,
    -8.03%

    reputation, some Wall Street analysts, for now, have downplayed the financial impact for the jet maker.

    In part, they pointed to the company’s status as one of two major players in aircraft production — the other being Airbus
    EADSY,
    +3.52%
    .
    They also cited a tighter supply of available aircraft and limited near-term impact, at least while investigators try to figure out the cause of the incident.

    Those airlines and others took the action over the weekend after a panel on a jet blew out about 10 minutes into Alaska Airlines Flight 1282 at an altitude of about 16,000 feet.

    No one died in the incident. But the Federal Aviation Administration ordered the temporary grounding of certain Boeing 737 Max 9 aircraft. The order covered 171 planes.

    Shares of Boeing fell 8.2% as the stock weighed on the Dow Jones Industrial Average
    DJIA.

    Still, some Wall Street analysts on Monday said to buy the stock anyway. They said the latest difficulties with the aircraft — which follow the 2019 grounding of Max jets by many nations following two fatal crashes — were unlikely to have a big near-term financial impact.

    BofA analysts, in a research note dated Sunday, said that “at this point in time, due to the duopoly nature of the industry, we do not see this impacting orders for any of the 737 MAX variants. However, if the hits to the program do keep coming … at some point, the flying public may lose confidence in the 737 MAX which could ultimately impact sales.”

    The analysts said it wasn’t clear yet whether the blowout on Friday was due to an assembly mistake at Boeing, an improper installation from fuselage maker Spirit AeroSystems or oversight issues elsewhere. But they noted that the aircraft was relatively new, having been delivered on Oct. 31. And they said that “some scrutiny must be saved for regulators as well, as the FAA is ultimately responsible for certificating these aircraft before delivery.”

    Spirit AeroSystems’ stock
    SPR,
    -11.13%

    was down 11%.

    Analysts at William Blair also said they didn’t expect a big hit to Boeing’s financials.

    “While the Alaska Airlines door plug accident was terrifying, we do not believe that it will have a major financial impact, unless another incident occurs after the aircraft returns to service,” they said in a note on Monday.

    Analysts there estimated that over the past two months, the Max 9 made up less than one-fifth of Boeing’s total deliveries. They said those deliveries would only be “modestly impacted over the first quarter as it could take some time to determine the cause.”

    Of the 23 analyst ratings on Boeing’s stock tracked by FactSet, 18 are buy ratings or the equivalent.

    Read more: How Boeing’s latest 737 Max problem is hurting the Dow

    However, Morgan Stanley analyst Ravi Shanker said the 737 Max 9 issues will likely disrupt first-quarter results for United Airlines
    UAL,
    +2.78%

    and Alaska Air
    ALK,
    -0.21%
    .

    “This will hopefully be a situation resolved in days/weeks rather than months, but it will also serve as a reminder of how fragile airline capacity can be despite the overhang of capacity,” Shanker said in a Monday research note.

    United Airlines’ stock rose 2.4% on Monday, while Alaska Air’s dipped by 0.3%.

    Along with United Airlines, Alaska Airlines and Turkish Airlines, Copa Airlines and Aeromexico grounded about 40 Boeing 737 Max 9 planes, according to reports.

    According to Deutsche Bank analysts, the affected fleet accounts for 16.1% of Alaska Airlines flights and 6.6% of United flights, although United has more 737 Max 9 aircraft than Alaska.

    Other airlines with the plane in their fleet include Jet Airways of India with one plane, Jin Air of Korea with three, KLM Royal Dutch Airlines
    KLMR,

    with five and Korean Air Lines
    003490,
    -1.52%

    with nine, according to Planespotter.net.

    European regulators also grounded the 737 Max 9 for inspection.

    Some major airlines do not have any 737 Max 9s in their fleets, including American Airlines
    AAL,
    +7.21%
    ,
    Southwest Airlines
    LUV,
    -0.10%

    and Air Canada
    AC,
    +3.42%
    ,
    according to reports.

    Also read: Shares in Boeing slump, supplier Spirit AeroSystems tanks, after panel blows out

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  • These 4 Stocks Cut Their Dividends. Now Is the Time to Bring Them Back.

    These 4 Stocks Cut Their Dividends. Now Is the Time to Bring Them Back.

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    The New Year is almost here, and that means it’s time for four of the last dividend cutters of 2020— Boeing, American Airlines Group, Royal Caribbean Group, and Carnival—to bring back their payouts to shareholders.

    Continue reading this article with a Barron’s subscription.

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  • Southwest Airlines’ stock slides 6% premarket as airline says revenue has not recovered to prepandemic levels

    Southwest Airlines’ stock slides 6% premarket as airline says revenue has not recovered to prepandemic levels

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    Southwest Airlines Co.’s stock
    LUV,
    +2.05%

    tumbled 6% premarket Thursday, after the airline said its revenue has not yet recovered to prepandemic levels and it’s adjusting its 2024 flight schedule to reflect changes to customer patterns. The airline made the comments as it reported second-quarter earnings showing net income of $683 million, or $1.08 a share, for the quarter, down from $760 million, or $1.20 a share, in the year-earlier period. Adjusted per-share earnings came to $1.09, matching the FactSet consensus. Revenue climbed to $7.037 billion from $6.728 billion a year ago, ahead of the $6.997 billion FactSet consensus. Revenue was a record driven by strong demand for leisure travel. “Further, we continue to expect $1.0 billion to $1.5 billion of pre-tax profit contribution in full year 2023 from strategic initiatives outlined at our Investor Day last December,” Chief Executive Bob Jordan said in a statement. “Based on current revenue and cost trends, we expect record operating revenue and a profitable outlook again for third quarter 2023 and continue to expect year-over-year margin expansion for full year 2023.” Still, the airline said its network is largely restored, but not yet optimized.  “We are working to align our network, fleet plans, and staffing to better reflect the current business environment,” he said. The company is now expecting revenue per available seat mile to fall 3% to 7% in the third quarter and for available seat miles to be up 14% to 15% for the full year. The stock has gained 7% in the year to date, while the S&P 500
    SPX,
    -0.02%

    has gained 19%.

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  • U.S. stocks climb as GDP report shows economy taking Fed’s rate hikes in stride

    U.S. stocks climb as GDP report shows economy taking Fed’s rate hikes in stride

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    U.S. stocks opened higher on Thursday as optimism over Tesla’s earnings results and a stronger-than-expected GDP report left investors in a better mood following Wednesday’s intraday selloff.

    How are stocks trading
    • The S&P 500
      SPX,
      +0.40%

      rose by 34 points, or 0.8%, to 4,049.

    • Dow Jones Industrial Average
      DJIA,
      +0.05%

      gained 145 points, or 0.4%, to 33,889.

    • Nasdaq Composite
      COMP,
      +0.89%

      advanced 174 points, or 1.5%, to 11,487.

    The Dow Jones Industrial Average finished Wednesday’s session up 10 points after falling roughly 400 points at the lows earlier in the session. The S&P 500 finished little-changed after erasing its early losses, while the Nasdaq ended lower.

    What’s driving markets

    Stocks opened higher after a flurry of economic data including a fourth quarter GDP report that came in stronger than expected, but the focus was on the latest batch of earnings, which helped to revive investors’ optimism following disappointing guidance from Microsoft Corp.
    MSFT,
    +1.35%

    earlier in the week.

    The economy grew at a robust 2.9% annual pace to close out 2022, according to the first estimate of fourth quarter GDP, released Thursday morning — the latest sign that the U.S. economy is holding up well despite the Federal Reserve’s aggressive interest-rate hikes.

    “Thursday’s GDP report suggests that the economy is relatively strong even in the face of aggressive measures by the Federal Reserve to calm inflation,” said Carol Schleif, chief investment officer, BMO Family Office, in emailed commentary.

    Stocks rose after the data were released as investors found solace in the latest signs that a soft landing for the U.S. economy — a scenario where growth slows, but a recession is avoided — remains possible, or even likely.

    “This is a bit of a relief rally,” said Christopher Zook, chairman and chief investment officer of CAZ Investments.

    However, corporate earnings and guidance are still the primary concern for investors, along with expectations about when the Federal Reserve will cut interest rates, Zook said.

    The labor market also showed signs of strength despite more reports of layoffs in the tech, finance and media spaces, as the number of Americans filing for unemployment benefits fell to their lowest level since April. Investors also digested durable goods orders for December. New home sales for December will be published at 10 a.m. ET.

    Investors also celebrated a surge in Tesla Inc.
    TSLA,
    +9.64%

    shares premarket after the firm released well-received results that showed record quarterly profits.

    Disappointing guidance from technology behemoth Microsoft had clobbered stocks on Wednesday as traders worried it signaled not just difficulties for the sector but also broadly worsening economic conditions.

    However, before the end of Wednesday’s session, Microsoft shares had recovered most of their 4.5% loss and the S&P 500 finished the session almost exactly where it began, according to data from FactSet.

    As for the Federal Reserve, the central bank is expected to slow the pace of interest rate hikes when it next week raises its policy rate by 25 basis points to a range of 4.5% to 4.75%.

    Companies announcing results on Thursday include: McDonald’s
    MCD,
    -0.28%
    ,
    Intel
    INTC,
    -0.34%
    ,
    Comcast
    CMCSA,
    +0.86%
    ,
    Visa
    V,
    +0.15%
    ,
    Dow
    DOW,
    -1.16%
    ,
    Whirl pool
    WHR,
    -0.91%
    ,
    Western Digital
    WDC,
    +3.72%

    and Northrop Grumman
    NOC,
    -0.90%
    .

    Companies in focus

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  • Airline stocks fell premarket after FAA says all U.S. flights grounded over computer outage

    Airline stocks fell premarket after FAA says all U.S. flights grounded over computer outage

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    Airlines stocks fell across the board in premarket trade Wednesday, after the Federal Aviation Administration said a computer outage had led to all U.S. fights being grounded. The agency said on its website that its “Notice to Air Missions” system has been activated “to address the equipment outage issues for the U.S. NOTAM system.” A NOTAM is a notice for workers engaged in flight operations. There was no indication of when service might be restored. Southwest Airlines Co.
    LUV,
    +1.68%

    led the decliners, falling 2.5%. American Airlines Group Inc.
    AAL,
    +3.97%

    was down 1.6%, United Airlines Holdings Inc.
    UAL,
    +5.54%

    was down 0.8%, JetBlue Airways Corp.
    JBLU,
    +4.92%

    was down 0.7% and Delta Air Lines Inc.
    DAL,
    +3.59%

    was down 0.7%. The U.S. Global Jets ETF
    JETS,
    +2.40%

    was down 0.7% and has fallen 14% in the last 12 months, while the S&P 500
    SPX,
    +0.70%

    has fallen 17%.

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  • Dow up 500 points as pace of jobs growth, wage gains cools in December

    Dow up 500 points as pace of jobs growth, wage gains cools in December

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    U.S. stocks advanced Friday, with the Dow rising 500 points, as monthly Labor Department data showed the pace of job creation cooled in December while wage gains slowed, fueling hopes that the Federal Reserve’s interest rate hikes are starting to have the desired effect.

    How are stocks trading
    • The S&P 500
      SPX,
      +1.85%

      gained 61 points, or 1.6%, to 3,869.

    • Dow Jones Industrial Average
      DJIA,
      +1.85%

      climbed 528 points, or 1.6%, to 33,458.

    • Nasdaq Composite
      COMP,
      +2.93%

      advanced 155 points, or 1.5%, to 10,460.

    After several sessions of choppy trade stocks finished lower on Thursday. However, thanks to Friday’s strong rebound, the S&P 500 is on track to finish the week in the green after four consecutive weekly declines.

    What’s driving markets

    Stock-market bulls cheered Friday’s jobs report, which showed that the pace of job creation and wage growth cooled last month, contradicting labor-market data released earlier in the week.

    The December nonfarm payrolls report showed 223,000 jobs were created in December, above expectations for 200,000 new jobs, though the pace of job creation slowed from 256,000 during November. Wages grew by just 0.3% in December, down from 0.4% a month earlier.

    See: U.S. adds 223,000 jobs in December and jobless rate matches 55-year low of 3.5%

    While stocks advanced in the wake of the data, it seems the labor market has continued to confound expectations for an imminent recession, market analysts said. While the pace of wage growth has slowed slightly, workers continued to command higher pay, even if wages have lagged headline inflation.

    “This is not going to push the Fed off its agenda one iota,” said Brad Conger, deputy chief investment officer at Hirtle, Callaghan & Co., in commentary about Friday’s data.

    Numerous Fed officials have made clear that they want to see unemployment climb in order to help suppress inflation and engineer a return to the Fed’s 2% target. Senior Fed officials expect unemployment to rise by nearly a percentage point in 2023, according to projections released in December.

    “The release was a win-win from the Fed’s perspective, as it signaled that wage inflation is moderating while job growth remains steady,” said Peter Essele, Head of Portfolio Management, Commonwealth Financial Network. “Coupled with the fact that headline inflation continues to move in the right direction, there’s a growing chance the Fed may be able to navigate a soft landing in the economy. If it meets its target, 2023 could be one of the best years for markets given the amount of negative investor sentiment currently weighing on prices.”

    The S&P 500 index is down more than 19% from its 52-week high after the Fed raised interest rates by 4.25 percentage points in 2022 in an attempt to crush inflation that hit a four-decade high of 9.1% in June, according to the consumer-price index.

    Jobs data released earlier in the week painted a picture of a labor market that had remained robust despite the Fed’s best efforts, and it’s not clear whether Friday’s data have meaningfully changed this perception, market strategists said.

    JOLTS data released Tuesday showed more than 10 million jobs remained open. Analysts noted that the ADP private sector employment report released on Thursday was stronger than expected, which triggered a selloff in stocks.

    Later Friday morning in New York, the ISM services sector index for December turned negative for the first time since May 2020, indicating a slowdown in the all-important services sector. The ISM services index slowed to 49.6% in December from 56.5%, below forecast.

    The drumbeat of cautious Fedspeak continued on Friday, with Federal Reserve Governor Lisa Cook saying that inflation “remains far too high, despite some encouraging signs lately.” The pace of inflation has cooled in recent months, according to the consumer-price index.

    Atlanta Fed President Raphael Bostic said on CNBC Friday that the December jobs data “doesn’t really change my outlook at all.”

    A number of other Fed speakers are expected Friday, including Richmond Fed President Tom Barkin at 12:15 p.m. and Kansas City Fed President Esther George at 1 p.m.

    Single-stock movers
    • Technology stocks may be under pressure on Friday after Samsung Electronics KR:005930 said quarterly profits fell to an eight-year low as it saw weaker demand for chips and smartphones.

    • Southwest Airlines Co. 
      LUV,
      +2.51%

      shares are worth watching after the airline warned Friday that it expects to report a surprise net loss for the fourth quarter after canceling thousands of flights over the holidays.

    • Tesla Inc. shares are sinking lower after the electric vehicle maker cut prices in China again.

    • World Wrestling Entertainment 
      WWE,
      +22.56%

      shares soared as founder Vince McMahon returned to the company.

    • Shares of Bed Bath & Beyond Inc.
      BBBY,
      -21.60%

      slumped as the company said it was likely to file for bankruptcy.

    • Costco Wholesale Corp. 
      COST,
      +6.77%

      shares climbed on strong holiday sales. 

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  • U.S. stocks fall on last trading day of 2022, booking monthly losses and worst year since 2008

    U.S. stocks fall on last trading day of 2022, booking monthly losses and worst year since 2008

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    U.S. stocks ended lower Friday, booking their worst annual losses since 2008, as tax-loss harvesting along with anxieties about the outlook for corporate profits and the U.S. consumer took their toll.

    How stock indexes traded
    • The Dow Jones Industrial Average
      DJIA,
      -0.22%

      slipped 73.55 points, or 0.2%, to 33,147.25.

    • The S&P 500
      SPX,
      -0.25%

      shed 9.78 points, or 0.3%, to 3,839.50.

    • The Nasdaq Composite dipped 11.61 points, or 0.1%, to 10,466.48.

    For the week, the Dow fell 0.2%, the S&P 500 slipped 0.1% and the Nasdaq slid 0.3%. The S&P 500 dropped for a fourth straight week, its longest losing streak since May, according to Dow Jones Market Data.

    All three major benchmarks suffered their worst year since 2008 based on percentage declines. The Dow dropped 8.8% in 2022, while the S&P 500 tumbled 19.4% and the technology-heavy Nasdaq plunged 33.1%.

    What drove markets

    U.S. stocks fell Friday, closing out the last trading session of 2022 with weekly and monthly losses.

    Stocks and bonds have been crushed this year as the Federal Reserve raised its benchmark interest rate more aggressively than many had expected as it sought to crush the worst inflation in four decades. The S&P 500 ended 2022 with a loss of 19.4%, its worst annual performance since 2008 as the index snapped a three-year win streak, according to Dow Jones Market Data.

    “Investors have been on edge,” said Mark Heppenstall, chief investment officer at Penn Mutual Asset Management, in a phone interview Friday. “It seems as though the ability to drive down prices is probably a bit easier given just how crummy the year’s been.”

    Stock indexes have slumped in recent weeks as hopes for a Fed policy pivot faded after the central bank in December signaled that it would likely wait until 2024 to cut interest rates.

    On the final day of the trading year, markets were also being hit by selling to lock in losses that can be written off of tax bills, a practice known as tax-loss harvesting, according to Kim Forrest, chief investment officer at Bokeh Capital Partners.

    An uncertain outlook for 2023 was also taking its toll, as investors fretted about the strength of corporate profits, the economy and the U.S. consumer with fourth-quarter earnings season looming early next year, Forrest said.

    “I think the Fed, and then earnings in the middle of January — those are going to set the tone for the next six months. Until then, it’s anybody’s guess,” she added.

    The U.S. central bank has raised its benchmark rate by more than four percentage points since the beginning of the year, driving borrowing costs to their highest levels since 2007.

    The timing of the Fed’s first interest rate cut will likely have a major impact on markets, according to Forrest, but the outlook remains uncertain, even as the Fed has tried to signal that it plans to keep rates higher for longer.

    On the economic data front, the Chicago PMI for December, the last major data release of the year, came in stronger than expected, climbing to 44.9 from 37.2 a month prior. Readings below 50 indicate contraction territory.

    Next year, “we’re more likely to shift towards fears around economic growth as opposed to inflation,” said Heppenstall. “I think the decline in growth will eventually lead to a more meaningful decline in inflation.”

    Read: Stock-market investors face 3 recession scenarios in 2023

    Eric Sterner, CIO of Apollon Wealth Management, said in a phone interview Friday that he’s expecting the U.S. could fall into a recession next year and that the stock market could see a new bottom as companies potentially revise their earnings lower. “I think earnings expectations for 2023 are still too high,” he said.

    The Dow Jones Industrial Average, S&P 500 and Nasdaq Composite booked modest weekly declines, adding to their December losses. For the month, the Dow fell 4.2%, while the S&P 500 dropped 5.9% and the Nasdaq sank 8.7%, FactSet data show.

    Read: Value stocks trounce growth equities in 2022 by historically wide margin

    As for bonds, the U.S. Treasury market was set to record its worst year since at least the 1970s.

    The yield on the 10-year Treasury note
    TMUBMUSD10Y,
    3.879%

    has jumped 2.330 percentage points this year to 3.826%, its largest annual gain on record based on data going back to 1977, according to Dow Jones Market Data.

    Two-year Treasury yields
    TMUBMUSD02Y,
    4.423%

    soared 3.669 percentage points in 2022 to 4.399%, while the 30-year yield
    TMUBMUSD30Y,
    3.971%

    jumped 2.046 percentage points to end the year at 3.934%. That marked the largest calendar-year increases ever for each based on data going back to 1973, according to Dow Jones Market Data.

    Outside the U.S., European stocks capped off their biggest percentage drop for a calendar year since 2018, with the Stoxx Europe 600
    SXXP,
    -1.27%
    ,
    an index of euro-denominated shares, falling 12.9%, according to Dow Jones Market Data.

    Read: Slumping U.S. stock market lags these international ETFs as 2022 comes to an end

    Companies in focus

    —Steve Goldstein contributed to this article.

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  • U.S. stocks close sharply higher in year-end rally after jobless claims data deemed ‘welcome news for the Fed’

    U.S. stocks close sharply higher in year-end rally after jobless claims data deemed ‘welcome news for the Fed’

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    U.S. stock indexes finished sharply higher on Thursday, the second-to-last trading session of the year, with the Nasdaq Composite jumping 2.6%, erasing losses from earlier in the week.

    The three main indexes built on premarket gains after U.S. weekly jobless claims data showed the number of workers receiving benefits has climbed to the highest level since February, a tentative sign that the Federal Reserve’s interest-rate hikes might be slowing economic growth and inflation.

    How stocks traded
    • The S&P 500
      SPX,
      +1.75%

      rose 66.06 points, or 1.8%, to end at 3,849.28.

    • Dow Jones Industrial Average
      DJIA,
      +1.05%

      added 345.09 points, or 1.1%, finishing at 33,220.80.

    • Nasdaq Composite
      COMP,
      +2.59%

      climbed 264.80 points, or 2.6%, to finish at 10,478.09.

    On Wednesday, the Nasdaq Composite dropped 1.4% to 10,213, its lowest closing level of the year. The S&P 500 is up more than 6% from its 2022 low from mid-October, but the large-cap index remains down 19.2% year-to-date, FactSet data show.

    What drove markets

    The penultimate session of 2022 showed tentative signs of delivering some much needed festive cheer for the stock market as a hope for “Santa Claus rally” had earlier failed to materialize.

    MarketWatch Live: Is that you, Santa Claus?

    Stocks advanced on Thursday as data showed the number of Americans receiving more than a single week of unemployment benefits had climbed by 41,000 last week to 1.71 million, the highest level in 10 months.

    The jobless-claims data “points to a loosening in the labor market, which is welcome news for the Fed,” said Larry Adam, chief investment officer at Raymond James, in a tweet.

    However, analysts at Citi still think the claims data indicates a still-very-tight labor markets compared to historical levels.

    “While both initial and continuing claims increased this week, they remain within the levels of late 2019,” wrote Gisela Hoxha, U.S. economics research analyst at Citi. “Anecdotes of company layoffs have increased in recent months, particularly in the tech sector. While it could be hard to disentangle the seasonal effects from the announced layoffs, in our view there is no significant evidence of them showing up in the claims data yet.”

    Some of those layoffs could be taking effect a couple months later as employees might be kept on payroll for some time after the announcement, which will become significant signs of weakness in the labor market in 2023, Hoxha added.

    See: Did 2022 break Wall Street’s ‘fear gauge’? Why the VIX no longer reflects the sorry state of the stock market

    Stocks were on track to finish what’s set to be the worst year since 2008 not far from 2022 lows. The S&P 500’s 52-week closing low at 3,577.03 was hit on Oct. 12.

    Still, the three indexes managed to erase losses from earlier in the week on Thursday. Nasdaq Composite was down 0.2% this week, while the S&P 500 gained 0.1% and the Dow was nearly flat as of Thursday’s close. If the S&P 500 can hold on to weekly gains through Friday, it would mark the end of a three-week losing streak that has been the index’s longest since September, FactSet data show.

    Companies in focus
    • Tesla Inc.
      TSLA,
      +8.08%

      shares finished 8.1% higher on Thursday after posting its first rise in eight sessions Wednesday. The electric-vehicle maker’s shares had declined in seven consecutive sessions, their worst losing streak since a seven-session run that ended on Sept. 15, 2018.

    • Southwest Airlines 
      LUV,
      +3.70%

      remains in focus as the airline tries to recover from logistical issues that caused thousands of flight cancellations over the past week. The stock fell 11% over the past two days, but rose 3.7% in Thursday session.

    • General Electric’s 
      GE,
      +2.17%

      spinoff of GE HealthCare Technologies will join the S&P 500 index when it begins trading as a separate public company on Jan. 4. GE HealthCare will replace Vornado Realty Trust 
      VNO,
      +1.63%
      ,
      which will move to the S&P MidCap 400. Vornado will replace logistics company RXO
      RXO,
      +8.39%
      ,
      which will move to the S&P SmallCap 600. GE HealthCare — trading on a when-issued basis — rose 0.9%, while Vornado gained 1.6% and RXO jumped 8.4%.

    • Cal-Maine 
      CALM,
      -14.50%

      shares ended 14.5% lower after its quarterly earnings came in below Wall Street forecasts. Cal-Maine reported record sales for the quarter as an avian flu outbreak continued to limit the supply of eggs, driving prices sharply higher. The company also said there were no positive tests for avian flu at any of its production facilities, as of Wednesday.

    — Jamie Chisholm contributed to this article

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  • LUV Stock Price | Southwest Airlines Co. Stock Quote (U.S.: NYSE) | MarketWatch

    LUV Stock Price | Southwest Airlines Co. Stock Quote (U.S.: NYSE) | MarketWatch

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    Southwest Airlines Co.

    Southwest Airlines Co. engages in the operation and management of a passenger airline. It offers ancillary services such as early bird check-in, upgraded boarding, and transportation of pets and unaccompanied minors. The firm operates in U.S. states, District of Columbia, the Commonwealth of Puerto Rico, Mexico, Jamaica, The Bahamas, Aruba, Dominican Republic, Costa Rica, Belize, Cuba, the Cayman Islands, and Turks and Caicos. The company was founded by Rollin W. King and Herbert D. Kelleher on March 9, 1967, and is headquartered in Dallas, TX.

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  • Southwest Airlines cancels another 2,300 flights with schedule in chaos

    Southwest Airlines cancels another 2,300 flights with schedule in chaos

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    Southwest Airlines continued to extract itself from sustained scheduling chaos Thursday, cancelling another 2,350 flights after a winter storm overwhelmed its operations days ago.

    The Dallas carrier acknowledged it has inadequate and outdated operations technology that can leave flight crews out of position when adverse weather strikes.

    Southwest
    LUV,
    +3.70%

    was the only airline unable to recover from storm-related delays that began over the weekend when snow, ice and high winds raked portions of the country.

    As has been the case every day this week, the vast majority of flight cancellations nationwide, are Southwest flights.

    There were 2,451 flights cancelled before noon Thursday in the U.S., and 2,357 were Southwest routes, or about 58% of its entire schedule, according to the FlightAware tracking service.

    The airline has warned that cancellations will continue for days.

    The federal government is investigating what happened at Southwest with total cancellations soaring past 10,000 early in the week.

    Southwest added a page to their website specifically for travelers who were stranded, but thousands of customers remain unable to reach the airline.

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  • U.S. stocks close sharply higher in year-end rally after jobless claims data deemed ‘welcome news for the Fed’

    U.S. stocks close sharply higher in year-end rally after jobless claims data deemed ‘welcome news for the Fed’

    [ad_1]

    U.S. stock indexes finished sharply higher on Thursday, the second-to-last trading session of the year, with the Nasdaq Composite jumping 2.6%, erasing losses from earlier in the week.

    The three main indexes built on premarket gains after U.S. weekly jobless claims data showed the number of workers receiving benefits has climbed to the highest level since February, a tentative sign that the Federal Reserve’s interest-rate hikes might be slowing economic growth and inflation.

    How stocks traded
    • The S&P 500
      SPX,
      +1.75%

      rose 66.06 points, or 1.8%, to end at 3,849.28.

    • Dow Jones Industrial Average
      DJIA,
      +1.05%

      added 345.09 points, or 1.1%, finishing at 33,220.80.

    • Nasdaq Composite
      COMP,
      +2.59%

      climbed 264.80 points, or 2.6%, to finish at 10,478.09.

    On Wednesday, the Nasdaq Composite dropped 1.4% to 10,213, its lowest closing level of the year. The S&P 500 is up more than 6% from its 2022 low from mid-October, but the large-cap index remains down 19.2% year-to-date, FactSet data show.

    What drove markets

    The penultimate session of 2022 showed tentative signs of delivering some much needed festive cheer for the stock market as a hope for “Santa Claus rally” had earlier failed to materialize.

    MarketWatch Live: Is that you, Santa Claus?

    Stocks advanced on Thursday as data showed the number of Americans receiving more than a single week of unemployment benefits had climbed by 41,000 last week to 1.71 million, the highest level in 10 months.

    The jobless-claims data “points to a loosening in the labor market, which is welcome news for the Fed,” said Larry Adam, chief investment officer at Raymond James, in a tweet.

    However, analysts at Citi still think the claims data indicates a still-very-tight labor markets compared to historical levels.

    “While both initial and continuing claims increased this week, they remain within the levels of late 2019,” wrote Gisela Hoxha, U.S. economics research analyst at Citi. “Anecdotes of company layoffs have increased in recent months, particularly in the tech sector. While it could be hard to disentangle the seasonal effects from the announced layoffs, in our view there is no significant evidence of them showing up in the claims data yet.”

    Some of those layoffs could be taking effect a couple months later as employees might be kept on payroll for some time after the announcement, which will become significant signs of weakness in the labor market in 2023, Hoxha added.

    See: Did 2022 break Wall Street’s ‘fear gauge’? Why the VIX no longer reflects the sorry state of the stock market

    Stocks were on track to finish what’s set to be the worst year since 2008 not far from 2022 lows. The S&P 500’s 52-week closing low at 3,577.03 was hit on Oct. 12.

    Still, the three indexes managed to erase losses from earlier in the week on Thursday. Nasdaq Composite was down 0.2% this week, while the S&P 500 gained 0.1% and the Dow was nearly flat as of Thursday’s close. If the S&P 500 can hold on to weekly gains through Friday, it would mark the end of a three-week losing streak that has been the index’s longest since September, FactSet data show.

    Companies in focus
    • Tesla Inc.
      TSLA,
      +8.08%

      shares finished 8.1% higher on Thursday after posting its first rise in eight sessions Wednesday. The electric-vehicle maker’s shares had declined in seven consecutive sessions, their worst losing streak since a seven-session run that ended on Sept. 15, 2018.

    • Southwest Airlines 
      LUV,
      +3.70%

      remains in focus as the airline tries to recover from logistical issues that caused thousands of flight cancellations over the past week. The stock fell 11% over the past two days, but rose 3.7% in Thursday session.

    • General Electric’s 
      GE,
      +2.17%

      spinoff of GE HealthCare Technologies will join the S&P 500 index when it begins trading as a separate public company on Jan. 4. GE HealthCare will replace Vornado Realty Trust 
      VNO,
      +1.63%
      ,
      which will move to the S&P MidCap 400. Vornado will replace logistics company RXO
      RXO,
      +8.39%
      ,
      which will move to the S&P SmallCap 600. GE HealthCare — trading on a when-issued basis — rose 0.9%, while Vornado gained 1.6% and RXO jumped 8.4%.

    • Cal-Maine 
      CALM,
      -14.50%

      shares ended 14.5% lower after its quarterly earnings came in below Wall Street forecasts. Cal-Maine reported record sales for the quarter as an avian flu outbreak continued to limit the supply of eggs, driving prices sharply higher. The company also said there were no positive tests for avian flu at any of its production facilities, as of Wednesday.

    — Jamie Chisholm contributed to this article

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  • Southwest Airlines flight cancellations continue to snowball

    Southwest Airlines flight cancellations continue to snowball

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    DALLAS — Travelers who counted on Southwest Airlines to get them home suffered another wave of canceled flights Wednesday, and pressure grew on the federal government to help customers get reimbursed for unexpected expenses they incurred because of the airline’s meltdown.

    Exhausted Southwest
    LUV,
    -5.16%

    travelers tried finding seats on other airlines or renting cars to get to their destination, but many remained stranded. The airline’s CEO said it could be next week before the flight schedule returns to normal.

    Adontis Barber, a 34-year-old jazz pianist from Kansas City, Missouri, had camped out in the city’s airport since his Southwest flight was canceled Saturday and wondered if he would ever get to a New Year’s gig in Washington, D.C.

    “I give up,” he said. “I’m starting to feel homeless.”

    By early afternoon on the East Coast, about 90% of all canceled flights Wednesday in the U.S. were on Southwest, according to the FlightAware tracking service.

    Other airlines recovered from ferocious winter storms that hit large swaths of the country over the weekend, but not Southwest, which scrubbed 2,500 flights Wednesday and 2,300 more on Thursday.

    The Dallas airline was undone by a combination of factors including an antiquated crew-scheduling system and a network design that allows cancellations in one region to cascade throughout the country rapidly. Those weaknesses are not new — they helped cause a similar failure by Southwest in October 2021.

    The federal government is now investigating what happened at Southwest, which carries more passengers within the United States than any other airline.

    In a video that Southwest posted late Tuesday, CEO Robert Jordan said Southwest would operate a reduced schedule for several days but hoped to be “back on track before next week.”

    Jordan blamed the winter storm for snarling the airline’s “highly complex” network. He said Southwest’s tools for recovering from disruptions work “99% of the time, but clearly we need to double down” on upgrading systems to avoid a repeat of this week.

    “We have some real work to do in making this right,” said Jordan, a 34-year Southwest veteran who became CEO in February. “For now, I want you to know that we are committed to that.”

    Transportation Secretary Pete Buttigieg, who has criticized airlines for previous disruptions, said that “meltdown” was the only word he could think of to describe this week’s events at Southwest. He noted that while cancellations across the rest of the industry declined to about 4% of scheduled flights, they remained above 60% at Southwest.

    From the high rate of cancellations to customers’ inability to reach Southwest on the phone, the airline’s performance has been unacceptable, Buttigieg said. He vowed to hold the airline accountable and push it to reimburse travelers.

    “They need to make sure that those stranded passengers get to where they need to go and that they are provided adequate compensation,” including for missed flights, hotels and meals, he said Wednesday on ABC’s “Good Morning America.”

    On its website, Southwest told customers affected by canceled or delayed flights between Dec. 24 and Jan. 2 to submit receipts. The airline said, “We will honor reasonable requests for reimbursement for meals, hotel, and alternate transportation.”

    Navy physician Lt. Cmdr. Manoj Mathew said after spending hours on hold over two days Southwest reimbursed him for the first leg of his family’s trip from Washington to Houston — they drove through terrible weather after the Dec. 23 flight was canceled. Now he is worried whether Southwest will operate the return flight Sunday.

    “I’m trying to reach other airlines,” he said. “There are no flights, plus it’s very expensive for us.”

    Leaders of Southwest’s labor unions have warned for years that the airline’s crew-scheduling system, which dates to the 1990s, was inadequate, and the CEO acknowledged this week that the technology needs to be upgraded.

    The other large U.S. airlines use “hub and spoke” networks in which flights radiate out from a few major or hub airports. That helps limit the reach of disruptions caused by bad weather in part of the country.

    Southwest, however, has a “point to point” network in which planes crisscross the country during the day. This can increase the utilization and efficiency of each plane, but problems in one place can ripple across the country and leave crews trapped out of position.

    Those issues don’t explain all the complaints that stranded travelers made about Southwest, including no ability to reach the airline on the phone and a lack of help with hotels and meals.

    Teal Williams, a 48-year-old active-duty Army reservist from Utah, was stuck at the Denver airport with her husband and two teenage kids on Christmas Day after their flight to Des Moines, Iowa, was canceled. She said Southwest employees had no information about flights and didn’t offer food vouchers while elderly passengers sat in wheelchairs for hours and mothers ran out of formula for their infants.

    “It was just imploding, and no one could tell you anything,” Williams said. The airline employees “were desperately trying to help, but you could tell they were just as clueless as everybody else … it was scary.”

    Unable to find plane, train or bus seats, Williams and her family felt lucky to score a rental car. They drove 12 hours to Iowa.

    Barber, the musician from Kansas City, already missed a performance Sunday in Dallas but had hoped to make it to Washington in time for a New Year’s performance near the National Mall.

    “I’m missing out on money,” he lamented.

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  • Southwest, NIO, AMC, Tesla, and More Stock Market Movers Tuesday

    Southwest, NIO, AMC, Tesla, and More Stock Market Movers Tuesday

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  • Southwest Airlines cancels two-thirds of its flights, with more cancellations planned

    Southwest Airlines cancels two-thirds of its flights, with more cancellations planned

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    Southwest Airlines Co. canceled more than two-thirds of its flights Monday and plans to slash its schedules Tuesday and Wednesday, in a meltdown that stranded thousands of customers and that worsened while other airlines began to recover from the holiday winter storm.

    “We had a tough day today. In all likelihood we’ll have another tough day tomorrow as we work our way out of this,” Chief Executive Bob Jordan said in an interview Monday evening. “This is the largest scale event that I’ve ever seen.” 

    Southwest
    LUV,
    +1.78%

    plans to operate just over one-third of its typical schedule in the coming days to give itself leeway for crews to get into the right positions, he said, adding that the reduced schedule could be extended.

    Southwest’s more than 2,800 scrapped flights Monday, the highest of any major U.S. airline, came as the Dallas-based airline proved unable to stabilize its operations amid the past week’s storm. Between Thursday and Monday, the airline canceled about 8,000 flights, according to FlightAware.

    On Monday, the Department of Transportation called Southwest’s rate of cancellations “disproportionate and unacceptable” and said it would examine whether the cancellations were controllable and whether the airline is complying with its customer service plan.

    Ryan Green, Southwest’s chief commercial officer, said in an interview the airline is taking steps such as covering customers’ reasonable travel costs—including hotels, rental cars and tickets on other airlines, and will be communicating the process for customers to have expenses reimbursed. He also said customers whose flights are being canceled as the airline recovers are entitled to refunds if they opt not to travel. 

    The troubles at Southwest intensified Monday despite generally improving weather conditions and warming temperatures throughout much of the eastern half of the country, which had been pummeled by snow, wind and subfreezing temperatures in recent days.

    An expanded version of this report appears on WSJ.com.

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