Stocks – American, Delta Air Lines Rise in Premarket on Capacity Cuts

This post was originally published on this site

https://i-invdn-com.akamaized.net/news/LYNXMPEB3N0GT_M.jpg
© Reuters. © Reuters.

By Geoffrey Smith 

Investing.com — Stocks in focus in premarket trade on Tuesday, March 10th. Please refresh for updates.

  • 8:37 AM ET: American Airlines (NASDAQ:) stock rose 7.6% after the company announced further cuts to its summer schedule in response to falling demand triggered by the coronavirus outbreak.
  • The company said it will cut trans-Pacific capacity at the summer peak by 55%, and will cut overall international capacity by 10% from prior plans. Flights from Los Angeles to Hong Kong and mainland China will be suspended through the summer.
  • American Airlines (NASDAQ:) will also cut domestic capacity by 7.5% in April.
  • Delta Air Lines (NYSE:) stock also rose, by 3.2% after it, too, announced further capacity cuts and said it will defer $500 million of planned capital expenditures and suspend its buyback program.
  • Delta is cutting domestic capacity, which accounted for 72% of total capacity last year, by 10%-15%. Transatlantic capacity (15% of last year’s total) will be cut by 15%-20% and Pacific capacity (6% of total) will be cut by two-thirds.
  • Marathon Oil (NYSE:) stock rose 28% after it said it would cut its 2020 capital spending budget by at least $500 million from an originally-planned $2.4 billion, aiming to conserve cash in a lower price environment.
  • In addition, Marathon said it has $3.9 billion of available liquidity and no near-term debt maturities.
  • 8:44 AM ET: Stitch Fix (NASDAQ:) stock fell 29% after the company issued guidance for its fiscal third quarter of around $470 million, well below the Wall Street consensus of $506 million.  
  • 8:51 AM ET: Zoom Video Communications stock was up 2.5%. The maker of videoconferencing software was one of the better-performing stocks during Monday’s rout, losing only 0.5%.
  • Occidental Petroleum (NYSE:) was up 25%, recovering partially after losing more than half its value on Monday. Occidental was particularly exposed to the oil price crash, having borrowed heavily to finance its acquisition of fellow exploration & production company Anadarko last year.

  • 8:56 AM ET: Royal Caribbean Cruises (NYSE:) stock rose 7.5% after the cruise operator withdrew its guidance for the current quarter and the full year due to the uncertain impact of the Covid-19 virus.

  • The stock had fallen over 25.7% on Monday.

  • The company said it has increased its revolving credit facility by $550 million and will take other actions to improve liquidity by at least another $1.7 billion this year, chiefly through cutting capital and operational spending.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.