Stock markets in 2024 are out to severely penalize companies whose prospects worsened. Boeing (BA) traded higher for the first time in days. The smallest, unrelated news about its 737 MAX 9 planes related to its cabin panel breaking off in mid-flight.
On January 17, the Federal Aviation Administration said that it completed the first 40 inspections. The FAA has 171 grounded planes under re-inspection.
In merger attempt news, markets sold off Spirit (SAVE) shares again. SAVE stock lost 22.47% of its value yesterday. The judge’s decision to deny the merger with JetBlue (JBLU) puts the latter firm’s survival into question. The big four airlines will benefit from the failed merger. Avoid SAVE and JBLU stock. Watch American Airlines (AAL), Delta (DAL), United Airlines (UAL), and Southwest (LUV).
In the energy sector, Devon Energy (DVN) and Exxon Mobil (XOM) both traded at 52-week lows. WTI crude prices are at $72.81. Tensions in the Middle East are not enough to offset the increased supply from the U.S. and OPEC+ members. Energy investors may bet on firmer energy prices by watching Antero Resources (AR) today. Occidental Petroleum (OXY), where Berkshire Hathaway (BRK-B) took a big position, might bounce back.
In the telecom sector, markets ignored Verizon Communication’s (VZ) write-off of $5.8 billion. The impairment charge reflects the value of its unit that caters to businesses and government clients. This is a goodwill, non-cash charge.