Why Delta, United, and American Airlines Surged Today
Shares of Delta (NYSE: DAL), United Airlines (NASDAQ: UAL), and American Airlines (NASDAQ: AAL) each surged on Friday, up 5.2%, 6.8%, and 7%, respectively, as of 3:02 p.m. ET.
There wasn't much in the way of company-specific news today, but virtually all economically sensitive stocks, like airlines, were surging higher today after recession fears had caused a big sell-off over the past week. But there may be more to this than just an oversold bounce, as some macroeconomic data showed inflation expectations may not be as bad as feared.
Ever since the market got June inflation data, as well as results of the preliminary University of Michigan consumer-sentiment readings earlier this month, the market has taken another leg down. That's because the official Consumer Price Index (CPI) report showed higher-than-expected core inflation, and the University of Michigan survey showed inflation expectations over the next five years ticking up, possibly becoming "un-tethered" to the long-run targets set by the Federal Reserve.
Source Fool.com
