Airlines stocks have obviously dropped on the explosion at the Boston Marathon finish line. Not a surprising reaction; bombs and airlines don't mix well. From what I've seen of the video, though, is that if this was a "terrorist attack," it was not a particularly sophisticated one. In other words, this doesn't look like "international terrorism" to me. So my guess is that market is over-reacting to the threat. That said, LCC is not cheap enough here to make me interested in buying on this dip.
Wow. I'm a bit surprised by the fast bounceback. Out of necessity, I've developed some expertise on these incidents in order to take advantage of the knee-jerk market responses. While this incident did not look like major international terrorism, it also seemed a bit troubling and confusing. So sitting on my hands seemed like the right move. About 20 hours later, we still really have no idea who did this. I guess the market has already concluded that it's most likely a "one time" event by an individual player. We'll see.
Typical "fog of war" situation now, but at least markets are closed so there are no immediate financial implications. Attack still looks fairly amateur to me, but there are some reports of the arrest of a Saudi national, which would make this attack more "relevant" to investors. I've got a gut feeling that report (at least the nationality) might turn out to be false, but we'll see.
Really sucky to follow these terrible things, but they're obviously material to airline investors and you have to pay attention in a somewhat cold, clinical way.