Morning Market Thoughts
Good morning. Last night’s webinar was fun, and I appreciate seeing so many of you there. We’re all quite busy during the day, so it takes a lot of effort and dedication to spend another hour in front of your screen during family time. Thanks for your contribution.United Airlines (UAL) stock is trading higher this morning, as the stock tries to regain the 50-day moving average after a disastrous couple of days in the media. CEO Oscar Munoz appeared on Good Morning America this morning and announced that he was discontinuing UAL’s internship program where up-and-coming mixed martial arts fighters received training as passenger deplaning specialists so that their transition from the octagon into private life would be smooth. He apologized for the program and admitted that it had been ill conceived.
On a serious note, last night we were looking at some of the airline stocks and I started to change my tune on them. I’ve been lukewarm about this sector because the stocks have just been drifting lower. I don’t see the money. But last night I took at look at the $XAL (Amex Airlines Index). It’s forming a fairly flat base along the 50-day moving average. The sector has possibilities. Delta (DAL) is setting the stage this morning as the stock is gapping up after reporting earnings that weren’t horrible.
I’ll be watching the entire sector. I still think it’s too early to put money to work…but it’s not too early to start studying the sector and finding opportunities.
See you in the Forum.
–Dan
Market Update