[ad_1]
ROSEMONT, IL – SEPTEMBER 3: An American Airlines jet is seen in the air preparing to land on September 3, 2004 at Chicago O’Hare International Airport in Rosemont, Illinois. American Airlines announced on December 10, 2004 that it would increase domestic air fares by $ 10 for round-trip travel and $ 5 for one-way travel due to jet fuel costs. (Photo by Tim Boyle / Getty Images)
Getty Images
Airlines shares exploded on Monday, after optimistic news about a potential COVID-19 vaccine candidate from Pfizer Inc. and BioNTech SE gave investors hope for a rapid recovery in business and leisure travel.
The US exchange-traded fund Global Jets JETS,
climbed 16.7% in morning trading, to the highest prices seen in five months.
The airline rally comes amid a surge in the broader stock market, with the Dow Jones Industrial Average DJIA,
up nearly 1,230 points, or 4.4%, and the S&P 500 SPX index,
up 3.3%. See Market Overview.
AAL from American Airlines Group Inc.,
the stock was by far the most active of the airline group. The stock climbed 14.8% in morning trading, to reduce earlier gains by 25.7%. Trading volume increased to 96.0 million shares, from a daily average of around 58.3 million shares.
Among the shares of the most active airlines, United Airlines Holdings Inc. UAL,
increased by 16.6% and Delta Air Lines Inc. DAL,
rose 14.1%, with both stocks heading for the highest close since June.
SAVE the actions of Spirit Airlines Inc.,
boosted sector gains, climbing 27.5% to a five-month high.
Elsewhere, shares of Southwest Airlines Co. LUV,
rose 16.2%, JetBlue Airways Corp. JBLU,
won 20.6%, Alaska Air Group Inc. ALK,
climbs 16.0% and Mesa Air Group Inc. MESA,
rallied 12.3%.
Previously Pfizer PFE,
and BioNTech BNTX,
reported that their COVID-19 vaccine candidate BNT162b2 was “successful” in the first interim analysis of a Phase 3 study because it was found to be 90% effective in preventing COVID-19 in participants in testing without prior evidence of SARS-CoV-2 infection.
Airlines have been among the sectors hardest hit by the COVID-19 pandemic. Although travel has increased steadily since April, a recent surge in new cases has led to further lockdowns in Europe and raised fears of similar moves in the United States.
“A coronavirus vaccine is the positive catalyst we were looking for to really jumpstart an aerospace recovery, and while some of today’s metrics may wear off with profit taking, we believe this news is fundamentally a step forward. the right direction, ”analyst Robert Stallard at Vertical Research Partners wrote in a note to clients.
The Jets ETF has gained 24.0% in the past three months, but was still down 34.5% year-to-date. By comparison, the S&P 500 has hit 8.0% in the past three months and is up 12.1% this year.
[ad_2]
Source link