What Does This Mean For Traditional Airlines?
Stocks rebounded in late trading Monday.
Oil prices began the day higher–which sent the indices lower but then backed
off and midday, easing pressure on stocks. Also helping stocks mid-day was Eliot
Spitzer saying a settlement with AIG was a possibility. Oil and gold both hit
record highs. OPEC said it would consider raising output by 500,000 barrels/day.
ChevronTexaco
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PowerRating) is buying Unocal
(
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PowerRating) in an $18
billion deal valuing UCL at $62.
UK’s The Independent said that HSBC may consider making a bid for
Morgan Stanley
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PowerRating).
NCR Corp.
(
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PowerRating) was the subject of a positive article in
Barron’s, which said the price drop was unwarranted.
The Supreme Court ruled that in bankruptcy cases, IRAs can be shielded from
creditors.
In a report, Brent Bowen, Director of the University of Nebraska’s aviation
institute said that low fare airlines are chipping away at larger, traditional
airlines. In the Airline Quality Rating study, five of the six top
airlines are low fare carriers. Low fare airlines have 25% of the market–up
from 5% five years ago–and are succeeding because they have less complicated,
more profitable routes than the larger airlines.
Tomorrow, Pfizer
(
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PowerRating) meets with analysts. There is little else
on the economic agenda, so the market may focus on the meeting.
Strong sectors were: Â Insurance
(
$IUX.X |
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PowerRating) +2.24% Â
Airlines
(
$XAL.X |
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(
$GIN.X$ |
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+1.51% Â
Weak sectors were:Â Â Gold
(
$HUI.X |
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Oil
(
$OIX.X |
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PowerRating) -1.04%Â Oil Services
(
$OSX.X |
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PowerRating)
-0.53%
| Dow | +16.70 | 10,420.41 |
| Nasdaq | +6.26 | 1991.07 |
| S&P 500 | +3.15 | 1176.07 |
The dollar was +0.34 at
84.78
Crude Oil was -0.76 at
57.01
Gold was -2.80 at 423.40
1.58 billion on the Nasdaq
Market breadth was negative.
| NYSE | Issues | |
| Advancing | 1693 | Up Vol 1000 |
| Declining | 1588 | Down Vol 1002 |
| 1.06 | 1.00 | |
| Nasdaq |
||
| Advancing | 1409 | Up Vol 818 |
| Declining | 1678 | Down Vol 754 |
| 1.19 | 1.08 |
Stocks in the News
AIG was upgraded at Smith Barney and Morgan Stanley.
Joseph A Bank
(
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PowerRating) beat by 0.04. The company sees 2005 sales of
2.05. Short interest on the stock is 51% of float.
Brice Wightman