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PreMarket Prep: Airlines And Banks Go Up, Up, And Away

GS, LUV, UAL

The nearly four-week-long government shutdown has created fears that longer TSA lines and poorer customer service from airlines are taking over airports far and wide. And while the shutdown is the craziest game of “Wait-and-See” in U.S. history, air travel—for now—is business as usual. With that confidence in mind, airlines are coming out as big winners.

American Airlines Group (NASDAQ: AAL), United Continental (NASDAQ: UAL), Jet Blue Airways (NASDAQ: JBLU), Southwest Airlines Co (NYSE: LUV)—all have moved up in recent days with big-time sympathy plays in motion. Shares of American, for instance, have steadily climbed since last week, starting at around $30 and hitting its high of just under $35 earlier in the day Wednesday. United took flight Wednesday morning, hitting $86 by opening following a Tuesday close of $81.

And banks are cashing in nicely this week as earnings continued to roll in. Bank of America Corp (NYSE: BAC) beat out expectations on its top and bottom lines as it benefited from corporate tax relief and higher interest rates. Goldman Sachs Group Inc (NYSE: GS) caught fire as well, beating revenue and profit expectations while also grabbing kudos for a gain in equities trading revenue offset a decline in bond trading revenue.

Our Pre-Market Prep show breaks down just how the airlines and banks are carrying on their hot hands and looks at how FAANG stocks are making a comeback.
Listen to the podcast here.

Discussion topics on today’s show:

  • Stellar bank earnings from BAC and GS
  • FISV's acquisition of FDC
  • UAL earnings and the state of the airliners c. 2019

Today’s Guest:

  • Frank Holmes, CEO and Chief Investment Officer of U.S. Global Investors (34:45)

Meet the Hosts:
Dennis Dick
Bio: www.premarketprep.com/author/premarketinfo/
Twitter: twitter.com/TripleDTrader

Joel Elconin
Bio: www.premarketprep.com/author/joelelconin/
Twitter: twitter.com/Spus

You can listen to the show live every day from 8-9 a.m. ET here, or catch the podcast on iTunes, Soundcloud and Stitcher.



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