Airline Stocks Fly High on Hope for $25B Government Bailout
Posted On August 6, 2020
Airline stocks were flying high on Thursday on the news that U.S. senators are pushing for another round of payroll assistance to the tune of $25 billion.
Senators talked bailout of the airlines with a second package amounting to a $25 billion payroll assistance program. Another spike in coronavirus cases hurt the slight recovery in flight demand in recent weeks. Consumer is off by 75 percent, analysts said.
Shares of Delta Airlines (NYSE: DAL) , United Airlines (NASDAQ: UAL) and American (NASDAQ: AAL) were on the rise at the closing bell Thursday.
Related to travel, hotel stocks like Intercontinental Hotels (NYSE: IHG) and Marriott (NASDAQ: MAR) made gains.
Biotech companies across the boards rose on the promise of a vaccine on the horizon. A recent entrant into the space is legacy photo-chemical company Kodak (NYSE: KODK) which showed strength this week on the news that it its hat into the vaccine development ring.
Uber (NYSE: UBER) shares sank on missed Q2 earnings expectations. But Carvana (NYSE: CVNA) the digital consumer used car portal, turned in strong earnings on the belief that customers want to forego car payments during an uncertain pandemic time period and an unstable job market.
The NASDAQ was powered on Thursday by Stamps.com (NASDAQ: STMP) which skyrocketed as it blew the doors off estimates, and T-Mobile (NASDAQ: TMUS) which showed strong earnings following its merger with Verizon and high hopes for the controversial 5G rollout.