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Travel stocks: United, American Airlines rise as flight restrictions remain in focus

Yahoo Finance's Brad Smith highlights how travel stocks are trading on Wednesday morning.

Video Transcript


BRAD SMITH: Yeah, we've struck the top of the 10:00 AM hour here on this Wednesday, August 24th, AKA Kobe Day, 8:24 for you folks at home. Taking a look at the Dow Jones Industrial average. As of right now, we are still down by about 1/10 of a percent. And there you're taking a look at a much larger chart there. Let's just take a look here at intraday to see what's been going on. We did touch positive territory just briefly there but moved back into negative territory right now down by about 1/10 of a percent.

NASDAQ composite, you're seeing that barely hold onto gains. As we'll continue to move out throughout the rest of the session, we'll see exactly what that means for the tech heavy average up right now by about 1/10 of a percent. S&P 500, yeah, it's having a waffle Wednesday for itself. Right now it is lower but oscillating in and out of gains and losses. And so as of right now, that's where we're finding the S&P 500.

Also I want to check in on some of the travel stocks here very briefly as well. Even as we move into the rest of this year and you're hearing about some of the capacity restrictions or flight route cancellations that are going to be pulling back-- British Airways one of those instances-- this is going to be a major focus for the airline operators as well.

And for customers, what that means is on less number of flights that are actually going to be taking off, whether that because of some of the restrictions that they have on number of available crew and logistical efforts there. That means that you could still be paying up a little bit more. Demand has been strong for those flights, and so that's being baked in it seems even more so into some of these airline stocks here.

Taking a look at UAL, that's up by about half a percent as of right now. Was also taking a look at AAL, American Airlines. You're seeing that up by about 7/10 of a percent here on the day. And then just additionally taking a look at one of the booking agencies here, Expedia, EXPE, you're seeing that hold on to slight gain. So fractional gains pretty much across the board for a lot of those airline operators in the broader booking space. Even Airbnb being one of those beneficiaries here. We'll see exactly where that demand accelerates into some of those bookings going into the holiday travel season as well here.

Also switching gears, all eyes on Jackson Hole. Fed Chair Jerome Powell's comments will be very carefully watched for hints of where the Fed might head. Now, market watchers, they expect continued tightening, and they're pointing to recent economic and corporate earnings data showing a cool down is happening but that it may not be fast enough to change the Fed's policy.