Airline stocks pull back, with American Airlines hurt by stock offering
Shares of most air carriers pulled back Tuesday, with American Airlines Co. (AAL) taking advantage of the previous session's big run up with a public share offering. The U.S. Global Jets ETF (JETS) dropped 1.1% in morning trading, after soaring 16.1% on Monday (http://www.marketwatch.com/story/airline-stocks-blast-off-after-upbeat-news-on-potential-covid-19-vaccine-11604927030) to close at a 5-month high as investors cheered a potential COVID-19 vaccine (http://www.marketwatch.com/story/biontech-pfizer-stocks-soar-after-covid-19-vaccine-candidate-achieves-success-in-first-analysis-2020-11-09). American's stock slumped 2.6%, as the company followed Monday's 15.2% surge by looking to sell 38.5 million shares (http://www.marketwatch.com/story/american-airlines-stock-pulls-back-after-plans-for-public-stock-offering-2020-11-10) to the public. Elsewhere, shares of Hawaiian Airlines parent Hawaiian Holdings Inc. (HA) slid 5.7%. Deutsche Bank analyst Michael Linenberg downgraded Hawaiian to hold from buy citing valuation, following Monday's 50.8% rally on the idea that Hawaiian had the most to gain from a return to normalcy. Among other air carriers, shares of United Airlines Holdings Inc. (UAL) slipped 0.6%, Delta Air Lines Inc. (DAL) gave up 1.1% and Spirit Airlines Inc. (SAVE) slipped 0.9%, while Southwest Airlines Co. (LUV) gained 0.6% and JetBlue Airways Corp. (JBLU) tacked on 0.6%. Meanwhile, the S&P 500 eased 0.4% after rising 1.2% on Monday.
-Tomi Kilgore; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
November 10, 2020 09:56 ET (14:56 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.