|Bid||13.05 x 4000|
|Ask||13.07 x 29200|
|Day's Range||12.58 - 13.16|
|52 Week Range||8.25 - 31.67|
|Beta (5Y Monthly)||1.64|
|PE Ratio (TTM)||N/A|
|Earnings Date||Oct 22, 2020 - Oct 26, 2020|
|Forward Dividend & Yield||0.40 (3.18%)|
|Ex-Dividend Date||Feb 04, 2020|
|1y Target Est||11.56|
Senior Analyst at Aviation Data Specialist OAG John Grant joins joins Yahoo Finance’s Zack Guzman to discuss the airline industry as CNBC reports that Delta is asking flight attendants to take unpaid leave amid COVID-19.
(Bloomberg) -- The U.S. labor market’s third straight month of solid improvement from the depths of the pandemic could very well be its last for a while.Workers returned to low-wage jobs at restaurants and retailers, as major cities -- especially New York -- continued to reopen early in the month. Since then, though, many measures of activity have leveled off and a key relief program has expired with no agreement on a new deal. The July jobs report also showed that millions of Americans who lost their jobs in the early days of the pandemic remain unemployed, with the overall rate still almost triple the pre-crisis level.“We’ve had the easy gains and the labor market is becoming a little more difficult now,” said Brett Ryan, senior U.S. economist at Deutsche Bank AG. “Going forward, the expectation should be a gradual step-down“ and “it may not be a straight line in terms of improvement every month.”Employers added 1.76 million jobs in July, about 300,000 more than economists expected, according to data Friday from the Labor Department. The unemployment rate fell by about 1 percentage point to 10.2%, just above the peak following the 2008 financial crisis but a marked decline from almost 15% at the height of the pandemic.Further job gains are looking increasingly difficult with no vaccine yet in sight, and several signs point to weakness in months ahead: a federal $600 supplement to weekly unemployment benefits, which provided extra cash to prop up households, expired at the end of July. That means fewer dollars spent into the economy and at businesses, which also face the end of funds through the Paycheck Protection Program.The jobless payments are particularly important with millions unemployed for months now. Out of the 16.3 million unemployed Americans in July, almost 8 million had been out of work for 15 weeks or longer, or roughly since the start of the pandemic. That figure was up 4.7 million from June.Meanwhile, negotiations over extending the relief have stalled.“The talks are rather stalemated right now,” White House economic adviser Larry Kudlow said on Bloomberg Television after the report Friday. Despite that, President Donald Trump plans to use executive orders to get “certain priorities through” including a payroll tax cut and eviction moratorium, he said. Kudlow continued to call the economic recovery “V-shaped.”But that recovery is on pause, casting a shadow over the labor market. High-frequency indicators show that economic and payroll activity slowed or declined in the weeks following the survey period for the government’s jobs report, which takes place early in the month.“What we have is an economy that’s still adding back but with the slowing in the reopening, we’re setting August up for a very questionable report,” said Joel Naroff, president of Naroff Economics LLC.Read more: Bloomberg’s TOPLive blog on the jobs reportU.S. equities were mixed on Friday as investors weighed doubts that lawmakers will be able to agree on a new round of economic stimulus with a better-than-forecast jobs report.What Bloomberg’s Economists Say“Following an unprecedented swing from severe drop to sharp rebound, the economy is entering more conventional recession dynamics. A prolonged period of elevated unemployment and subdued participation in the labor market will weigh heavily on income growth, personal spending and top-line growth.”\-- Yelena Shulyatyeva, Andrew Husby and Eliza WingerClick here for the full noteLow-wage sectors led gains: payrolls at restaurants jumped by half a million, retail trade employment also increased, though at a slower pace, with more than 250,000 jobs added. Health care and social assistance payrolls rebounded as doctors’ offices continued to open and as demand for day care increased.Manufacturing employment rose just 26,000 in July, about one-tenth of forecasts. Auto makers added more than 39,000 workers.Government PayrollsThe report also showed a 241,000 jump in local-government employment, reflecting seasonal adjustments in the education sector.While companies are hiring, including Amazon Inc., Alphabet Inc., Ford Motor Co. and D.R. Horton Inc., layoffs have been piling up in recent weeks, particularly in industries most affected by the pandemic. American Airlines Group Inc. advised that 25,000 jobs are at risk when aid expires and United Airlines Holdings Inc. said it would furlough one-third of its pilots. L Brands Inc., which owns Victoria’s Secret, said it would lay off 15% of its workforce.The July jobs report also showed little improvement for Black Americans, with their unemployment ticking down only slightly to 14.6%, compared with 12.9% for Hispanic workers, and 9.2% for Whites. The jobless rate for women, who carry the most responsibility for childcare and homecare duties, fell to 10.5% and for men it dropped to 9.4%.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
American Airlines (NASDAQ:AAL) has been one of the more volatile names for the airline industry. Like most, AAL stock was hammered from its 2020 highs, but it led a jaw-dropping rebound from the March lows. Since then, shares have settled down quite a bit as investors have refocused on reality. Source: GagliardiPhotography / Shutterstock.com That reality is, multiple airlines have reported earnings now - including American - and management is telling us that the rebound is stalling. Why? Because novel coronavirus cases are back on the rise. As cases rise, travel trends are plateauing. What once appeared to be a strong and vibrant rebound in travel - for better or for worse - now has waning momentum. Of course, that's not too surprising, but to hear it from management draws concern. For AAL stock, that's bad news. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Breaking Down American AirlinesAmerican Airlines reported earnings in late July and the results were not very good. On the plus side, that didn't really take investors by surprise, as it was pretty clear that Q2 was going to be horrendous for the airlines. The company actually beat on top- and bottom-line expectations, but boy was it ugly. In the report, management talked about ample liquidity, which sat at $10 billion at the end of the quarter. Cash-burn had averaged $55 million a day in the quarter, but was down to $30 million in the month of June. * 7 Travel Stocks to Buy Banking On Pent-Up DemandThis was the concern though, (bold emphasis added):"Passenger demand and load factors have improved since bottoming out in April, but continue to be significantly below 2019 levels. While May and June revenue trends were encouraging, demand has weakened somewhat during July as COVID-19 cases have increased and new travel restrictions have been put into place." Click to EnlargeWe have now heard that from multiple management teams, including United Airlines (NASDAQ:UAL) and Spirit Airlines (NYSE:SAVE). Delta Air Lines (NYSE:DAL) CEO said it will be a couple of years before we see a sustainable recovery. If comments from management aren't enough proof, check out the chart of TSA traffic. While it shows a pretty steady recovery from the lows, it has really leveled off in the month of July. That's not good for the industry, whether we're talking about the best players or the worst. On that note, while American is trying its hardest, it doesn't have the same strength as some of the other airlines. Spirit Airlines has cut down its cash burn the most and should be the quickest to turn profitable in the industry. Southwest Airlines (NYSE:LUV) has the best balance sheet in the group. Trading AAL Stock Click to EnlargeSource: Chart courtesy of StockCharts.comThough I said the charts are keeping me out of this one, the reality is everything is keeping me out. But the charts are the main one. That is, unless it can gain some upside momentum. Currently, AAL stock is below all of its major moving averages, while the 20-day moving average continues to act as resistance. Multiple times over the last month, shares tested up into this level, only to be rejected. Put simply, American Airlines stock is having trouble getting off the mat, let alone dancing in the ring. But there are some signs of hope. Support at $11 continues to hold, while shares look like they want to break over resistance. Bears will say the stock looks like it wants to break down though, as a descending triangle takes hold. If AAL stock closes above the 20-day moving average, look for a possible run to the 50-day. Above that puts the July high in play at $14.29. On the flip side, if American can't close above the 20-day, we have to watch for a break of $11. In that case it could put the $9 to $10 area in play and possibly a retest of the May low. At a time where the broader market continues to chug higher, there's no other way to say it: The charts do not indicate AAL stock is a buy at the moment, nor do its fundamentals. Let's wait for more clarity on the technicals. Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell did not hold a position in any of the aforementioned securities. More From InvestorPlace * Why Everyone Is Investing in 5G All WRONG * America's 1 Stock Picker Reveals His Next 1,000% Winner * Revolutionary Tech Behind 5G Rollout Is Being Pioneered By This 1 Company * Radical New Battery Could Dismantle Oil Markets The post Charts Say to Avoid American Airlines for Now appeared first on InvestorPlace.