Tuesday's Rising Market Is Leaving Airline Stocks Behind
Stocks were generally higher on Tuesday morning, with investors shrugging off concerns about the rise in reported COVID-19 cases in key states like Florida, Texas, and California. Instead, the focus appears to be on how quickly hard-hit Americans can get back to work and play their part in helping the overall economy return to more normal conditions. Just after 11 a.m. EDT, the Dow Jones Industrial Average (DJINDICES: ^DJI) was up 176 points to 26,201. The S&P 500 (SNPINDEX: ^GSPC) rose 25 points to 3,143, and the Nasdaq Composite (NASDAQINDEX: ^IXIC) picked up 105 points to 10,162.
Tuesday's gains were broad-based, but there were still some notable laggards that missed out on the rally. Airline stocks were among the worst performers, with a couple seeing greater losses than the rest. Even as the economy gets back on track, it's still unclear whether airlines will bounce back as much as other companies do.
With airlines operating far below full capacity, raising capital in order to maintain financial reserves and offset negative cash flow has been essential. Unfortunately, it's been necessary to pull out all the stops in order to find viable funding sources, and that's weighing on shareholder confidence.
Source Fool.com
