Latest news with #NYSEArcaAirlineIndex
Business Standard
3 days ago
- Business
- Business Standard
US Stocks Rally on Strong Jobs Data; Nasdaq Hits Record High
Better thanexpected U.S. job growth in May boosts investor confidence, lifting major indexes and driving gains in airline, oil and financial stocks. The Nasdaq shot up 231.50 points (1.2%) to 19,529.95, the Dow surged 443.13 points (1.1%) to 42,762.87 and the S&P 500 jumped 61.06 points (1%) to 6,000.36. Labor Departments report showed slightly stronger than expected U.S. job growth in the month of May. Also, it mentioned that the non-farm payroll employment shot up by 139,000 jobs in May after jumping by a downwardly revised 147,000 jobs in April. The report said the unemployment rate came in at 4.2% in May, unchanged from the previous month and in line with economist estimates. The modestly bigger than expected increase in employment helped offset concerns about the strength of the economy following some recent downbeat data. Airline stocks substantially moved upwards, with the NYSE Arca Airline Index soaring by 3.2%. A sharp increase by the price of crude oil also contributed to significant strength among oil service stocks, driving the Philadelphia Oil Service Index up by 2.2%. Financial, oil producer and biotechnology stocks also saw considerable strength while gold stocks bucked the uptrend amid a steep drop by the price of the precious metal. Asia-Pacific stocks turned in another mixed performance. Japan's Nikkei 225 Index rose by 0.5%, while Hong Kong's Hang Seng Index fell by 0.5%. The major European markets also ended the day mixed while the German DAX Index edged down by 0.1%, the French CAC 40 Index crept up by 0.2% and the U.K.'s FTSE 100 Index rose by 0.3%. In the bond market, treasuries moved sharply lower in reaction to the better than expected U.S. jobs data. Subsequently, the yield on the benchmark ten-year note which moves opposite of its price, surged 11.6 bps to 4.51%.
Business Standard
28-05-2025
- Business
- Business Standard
Wall Street Soars as Trump Delays EU Tariff, Consumer Confidence Surges
Markets rallied with major indexes posting strong gains, boosted by tariff delay, rising consumer confidence and sector-wide strength in airlines, semiconductors and more. The Nasdaq shot up 461.96 points (2.5%) to 19,199.16, the S&P 500 surged 118.72 points (2.1%) to 5,921.54 and the Dow jumped 740.58 points(1.8%) to 42,343.65. Wall Street rallied after Trump delayed the 50% EU tariff to July 9, 2025, following a request from EU Commission President von der Leyen. He said talks would begin quickly and hoped the EU, like China, would open up to U.S. trade. Conference Board released a report showing a substantial improvement by U.S. consumer confidence in the month of May in response to which a positive sentiment was recorded. It also said its confidence index spiked to 98 in May after plunging to a downwardly revised 85.7 in April. Airline stocks turned in some of the market's best performances on the day, with the NYSE Arca Airline Index soaring by 4.9%. Semiconductor stocks displayed substantial strength, as reflected by the 3.4% spike by the Philadelphia Semiconductor Index. Networking, computer hardware and banking stocks also saw considerable strength, moving higher along with most of the other major sectors. Asia-Pacific stocks region turned in a mixed performance. Japan's Nikkei 225 Index rose by 0.5%while China's Shanghai Composite Index dipped by 0.2%. European stocks moved mostly higher on the day. The German DAX Index advanced by 0.8%and the U.K.'s FTSE 100 Index climbed by 0.7%, although the French CAC 40 Index closed just below the unchanged line. In the bond market, treasuries extended the upward move seen over the two previous sessions. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, tumbled 7.5 bps to 4.43%.
Business Standard
22-05-2025
- Business
- Business Standard
Markets Drop on Rising Yields and Trade Concerns
The Dow fell 1.9% amid surging Treasury yields and fears over a costly tax bill. Airline and banking stocks slumped, while Asia-Pacific markets mostly gained. The 10-year Treasury yield jumped to 4.59% after weak bond auction demand. The Dow plunged 816.80 points (1.9%) to 41,860.44, the S&P 500 slumped 95.85 points (1.6%) to 5,844.61 and the Nasdaq tumbled 270.07 points (1.4%) to 18,872.64. Stocks have rebounded strongly since early April but concerns over stalled trade deals and rising bond yields have pressured markets. The 30-year Treasury yield surpassed 5% amid worries that President Trump's proposed tax and spending bill could add \$2.5 trillion to the deficit. Treasury yields also rose following a \$16 billion twenty-year bond auction with below-average demand, reflected in a bid-to-cover ratio of 2.46 versus the historical average of 2.58. Airline stocks substantially moved downwards, resulting in a 3.7% nosedive by the NYSE Arca Airline Index. Banking stocks were considerably weak, as reflected by the 3.1% slump by the KBW Bank Index. Oil service, housing and commercial real estate stocks saw notable weakness while gold stocks bucked the downtrend amid a continued increase by the price of the precious metal. Asia Pacific stocks moved mostly higher on Wednesday. Hong Kong's Hang Seng Index rose by 0.6% and China's Shanghai Composite Index inched up by 0.2%, although Japan's Nikkei 225 Index bucked the uptrend and fell by 0.6%. The major European markets turned in a mixed performance on the day. While the French CAC 40 Index fell by 0.4%, the U.K.'s FTSE 100 Index inched up by 0.1% and the German DAX Index climbed by 0.4%. In the bond market, treasuries moved sharply lower after ending the previous session roughly flat. As a result, the yield on the benchmark ten-year note which moves opposite of its price, surged 11.5 bps to 4.59%.
Yahoo
21-05-2025
- Business
- Yahoo
Airlines brace for the summer of hell
Summer's usually a boom time for airlines. This year could change that. Airlines began 2025 projecting strong growth. But since then, one issue after another has cut into passenger demand. Air traffic control problems are causing flight delays and cancellations, feeding into traveler worries over safety that began in January with the worst US air crash in decades. A global trade war and other economic concerns are driving down the value of the dollar, making overseas travel more expensive for Americans. Meanwhile, foreign travelers are staying away either in protest over actions by the Trump administration or due to immigration concerns. There are also new security rules requiring airlines passengers upgrade to a 'Real ID' to get through TSA checkpoints, which could keep some passengers from flying. Add to that a general concern about the economy, and what's usually a key money-making time for the airlines could fall short this year. 'It really is a perfect storm of a lot of things affecting the airlines,' said William McGee, senior fellow for aviation and travel at the American Economic Liberties Project think tank. 'Summer is definitely going to be softer for the airlines. And summer is where the biggest part of the money is made.' Instead of gearing up to make big profits, airlines are cutting back flight routes for the rest of the year to save money, stepping away from earlier optimistic earnings guidance. Airline stocks measured by the NYSE Arca Airline Index have lost more than 20% of their value since January 29, the date of the fatal crash at Ronald Reagan Washington National Airport. That was the first high-profile airline incident this year, but it was far from the last. Since then, there has been a non-fatal crash in Toronto of a Delta regional jet as well as reports of near-collisions on the ground, and in the air, at various airports across the United States. After the fatal crash in Washington, DC, Delta CEO Ed Bastian said the airline saw an immediate drop in ticket sales as more passengers became worried about flying. 'It caused a lot of shock among consumers,' he said at an investors conference in March . 'We saw a pretty immediate stall in both corporate travel and bookings. Consumer confidence and certainty in air travel started to wane a little bit as questions of safety came in.' Concerns about safety haven't been helped by recent reports of air traffic controllers overseeing flights at Newark Liberty International Airport briefly losing both radar and their ability to communicate with planes. There were no crashes as a result of the air traffic control issues, but it did cause some controllers to put in for trauma leave. The drop in staffing led to long delays and cancellations for thousands of flights at one of the nation's key airport hubs. 'I've had more friends, colleagues and acquaintances say they don't want to fly right now than normal, not because they're scared of crashes, but because they don't want to deal with delays and cancellations,' said McGee. Flyers aren't staying away just because of safety concerns and potential delays – there's also worries about the broader economy. Consumer confidence this month plunged to levels below those seen during the Great Recession. The Conference Board's confidence survey found in April that Americans intending to fly in the next six months fell 12.5% from January. International travel, an important profit driver for the nation's three largest airlines, has been hit particularly hard. According to analysis by aviation analytics firm Cirium, bookings from the United States to Europe from June through August through third-party sources like online travel sites fell 9.8% compared to a year ago. And it's even worse in reverse, with 12% fewer bookings on flights from Europe to the United States. Then there is the Real ID requirement for boarding flights, which could be keeping travelers away from airports until they can upgrade their drivers' license, which can take weeks or even months. So far, the new security rule has had little apparent impact on travelers, according to one airline executive who spoke to CNN on background. About 7% of Americans are showing up at TSA checkpoints without a Real ID or an alternate form of allowable identification, such as a passport or military ID, according to a TSA spokesperson. But the agency said many of those without the Real ID or equivalent are being allowed through after additional screening. The TSA expects to end exceptions later this year. The airlines have weathered worse situations in the past. The pandemic brought flying to a near-halt, requiring federal bailouts. The September 11 terrorist attack was followed by a string of bankruptcies and mergers. There have been massive financial losses due to previous spikes in fuel prices. But as the airlines begin a summer where they had expected smooth flying, they're about to experience some unpleasant financial turbulence. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
CNN
21-05-2025
- Business
- CNN
Airlines brace for the summer of hell
Summer's usually a boom time for airlines. This year could change that. Airlines began 2025 projecting strong growth. But since then, one issue after another has cut into passenger demand. Air traffic control problems are causing flight delays and cancellations, feeding into traveler worries over safety that began in January with the worst US air crash in decades. A global trade war and other economic concerns are driving down the value of the dollar, making overseas travel more expensive for Americans. Meanwhile, foreign travelers are staying away either in protest over actions by the Trump administration or due to immigration concerns. There are also new security rules requiring airlines passengers upgrade to a 'Real ID' to get through TSA checkpoints, which could keep some passengers from flying. Add to that a general concern about the economy, and what's usually a key money-making time for the airlines could fall short this year. 'It really is a perfect storm of a lot of things affecting the airlines,' said William McGee, senior fellow for aviation and travel at the American Economic Liberties Project think tank. 'Summer is definitely going to be softer for the airlines. And summer is where the biggest part of the money is made.' Instead of gearing up to make big profits, airlines are cutting back flight routes for the rest of the year to save money, stepping away from earlier optimistic earnings guidance. Airline stocks measured by the NYSE Arca Airline Index have lost more than 20% of their value since January 29, the date of the fatal crash at Ronald Reagan Washington National Airport. That was the first high-profile airline incident this year, but it was far from the last. Since then, there has been a non-fatal crash in Toronto of a Delta regional jet as well as reports of near-collisions on the ground, and in the air, at various airports across the United States. After the fatal crash in Washington, DC, Delta CEO Ed Bastian said the airline saw an immediate drop in ticket sales as more passengers became worried about flying. 'It caused a lot of shock among consumers,' he said at an investors conference in March. 'We saw a pretty immediate stall in both corporate travel and bookings. Consumer confidence and certainty in air travel started to wane a little bit as questions of safety came in.' Concerns about safety haven't been helped by recent reports of air traffic controllers overseeing flights at Newark Liberty International Airport briefly losing both radar and their ability to communicate with planes. There were no crashes as a result of the air traffic control issues, but it did cause some controllers to put in for trauma leave. The drop in staffing led to long delays and cancellations for thousands of flights at one of the nation's key airport hubs. 'I've had more friends, colleagues and acquaintances say they don't want to fly right now than normal, not because they're scared of crashes, but because they don't want to deal with delays and cancellations,' said McGee. Flyers aren't staying away just because of safety concerns and potential delays – there's also worries about the broader economy. Consumer confidence this month plunged to levels below those seen during the Great Recession. The Conference Board's confidence survey found in April that Americans intending to fly in the next six months fell 12.5% from January. International travel, an important profit driver for the nation's three largest airlines, has been hit particularly hard. According to analysis by aviation analytics firm Cirium, bookings from the United States to Europe from June through August through third-party sources like online travel sites fell 9.8% compared to a year ago. And it's even worse in reverse, with 12% fewer bookings on flights from Europe to the United States. Then there is the Real ID requirement for boarding flights, which could be keeping travelers away from airports until they can upgrade their drivers' license, which can take weeks or even months. So far, the new security rule has had little apparent impact on travelers, according to one airline executive who spoke to CNN on background. About 7% of Americans are showing up at TSA checkpoints without a Real ID or an alternate form of allowable identification, such as a passport or military ID, according to a TSA spokesperson. But the agency said many of those without the Real ID or equivalent are being allowed through after additional screening. The TSA expects to end exceptions later this year. The airlines have weathered worse situations in the past. The pandemic brought flying to a near-halt, requiring federal bailouts. The September 11 terrorist attack was followed by a string of bankruptcies and mergers. There have been massive financial losses due to previous spikes in fuel prices. But as the airlines begin a summer where they had expected smooth flying, they're about to experience some unpleasant financial turbulence.
