Airline Stocks Fall Amid Canceled Flights, Fuel Costs


Key Takeaways

  • The S&P 500 tumbled 1.3% on Wednesday, Oct. 18, 2023, with concerns about corporate earnings and the possibility that fighting between Israel and Hamas may escalate further.
  • Albemarle shares plunged when Bank of America downgraded the stock, warning lithium prices are expected to decline.
  • Shares of DaVita gained as the provider of kidney dialysis services teamed up with Alphabet’s Google to use AI to improve patient outcomes.

U.S. equities sank, with the S&P 500 falling 1.3% on Wednesday, amid concerns about corporate earnings and a potential escalation of the conflict between Israel and Hamas.

Speculation that the fighting could affect supplies helped send oil futures higher, and gold prices advanced as a so-called “safe haven” investment.

Albemarle (ALB) shares plunged 9.8% as Bank of America downgraded the stock and cut its price target. The bank said it believes the lithium market will see a glut in supply and that prices will fall.

United Airlines Holdings (UAL) shares sank 9.7%, and shares of rival airlines also dropped, after the carrier warned that canceled flights to Israel because of the fighting and higher fuel prices will negatively affect results.

J.B. Hunt Transport Services (JBHT) shares dipped 8.9% after the shipping giant missed profit and sales forecasts because of falling freight rates.

Morgan Stanley (MS) shares lost 6.8% as the bank reported revenue from its wealth management and investment banking units that was less than expected.

Procter & Gamble (PG) shares added 2.6% as higher prices helped the consumer products maker report better-than-expected results.

Nasdaq (NDAQ) shares were up 4% after the electronic trading platform reported revenue from its indexes and anti-financial crime products rose.

Shares of kidney dialysis treatment firm DaVita (DVA) advanced 3.1% as it teamed up with Alphabet’s (GOOGL) Google to use artificial intelligence (AI) to streamline care for DaVita’s 200,000 patients. Alphabet shares declined 1.3%.

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