Investors continue to focus their attention on the implementation of several proposals by President Donald Trump to reform the U.S. economy. Yesterday, the Trump administration announced the most significant tax reform proposals since the 1980s. However, there was little understanding of how both President Trump and Congress plan to implement his tax plan.
While technology giants are expected to generate a lot of buzz after the bell with earnings reports, today's trading session was marked by a downturn in airline stocks. Shares of American Airlines Inc. (Nasdaq: AAL) fell 5.2% after the firm announced tepid quarterly earnings. The firm also announced it had offered a mid-contract pay bump for its pilots and flight attendants. Shares of Southwest Airlines Co. (NYSE: LUV) fell 2.09% after its earnings report failed to impress analysts. These lackluster reports impacted shares of competing firms like Delta Air Lines Inc. (NYSE: DAL) and Alaska Air Group Inc. (NYSE: ALK)
In economic news, U.S. weekly jobless claims rose more than expected last week to 257,000. First-time claims have been below 300,000 for the last 112 weeks. Tomorrow's economic calendar features critical data like the first estimate of Q1 GDP, an update on U.S. rig production figures, and two speeches from members of the U.S. Federal Reserve.
Today's losing sector was energy. Shares of Exxon Mobil Corp. (NYSE: XOM) led the S&P Energy sector down on the day thanks to a sharp decline in crude oil prices. Concerns about rising U.S. gasoline inventories compounded additional worries that OPEC members may not extend their deal to cap excessive production. Such a scenario could pummel crude prices and drive up global supply. The WTI crude oil price today dipped 0.9%. Brent crude fell 0.3%.
But the big story today was Bitcoin. The cryptocurrency rallied above $1,300 per unit and capped off a 20% rally for the month of April. Just days ago, the SEC announced that it will review its rejection of the Winklevoss Bitcoin Trust. Bitcoin surpassed its previous all-time high of $1,325 in March, just before the government agency rejected the Bitcoin exchange-traded fund (ETF) application.
3 Stocks to Watch Thursday: UAL, UAA, AMZN
United Continental Holdings Inc. (NYSE: UAL) generated a series of headlines after the company announced a 10-point plan to overhaul its customer service operations. The plan would offer passengers up to $10,000 if they are asked to give up their seats due to overbooking. The airline also reached a deal with an American doctor who was dragged off a plane earlier this month. The incident sparked international outrage and fueled calls for boycotts from customers around the globe. The UAL stock price dropped 0.88% on the day.
Shares of Under Armour Inc. (NYSE: UAA) rallied nearly 10% after the global apparel giant reported first quarter earnings. The company reported its first ever earnings loss of $0.01 per share since becoming a publicly traded firm. Wall Street analysts projected a much larger loss, and investors are hoping that the firm can pull out of its current slump.
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Shares of Amazon.com Inc. (Nasdaq: AMZN) climbed 1% as the firm prepares to report quarterly earnings after the bell. We expect more record highs from this innovative leader in the months ahead. In fact, Money Morning projects that Amazon is on the verge of more than just traditional retail dominance. Here's where AMZN stock is heading next.
Other top stocks to watch today (Thursday) included Southwest Airlines Co. (NYSE: LUV) and Weight Watchers International Inc. (NYSE: WTW). Here's why those stocks were generating headlines.
After the bell, look for earnings reports from GoPro Inc. (Nasdaq: GPRO), Expedia Inc.(Nasdaq: EXPE), Intel Corp. (Nasdaq: INTC), Baidu Inc. (Nasdaq ADR: BIDU), Microsoft Corp. (Nasdaq: MSFT), Alphabet Inc. (Nasdaq: GOOGL), and Starbucks Corp. (Nasdaq: SBUX).
Friday's U.S. Economic Calendar (all times EDT)
GDP at 8:30 a.m.
Employment Cost Index at 8:30 a.m.
Chicago PMI at 9:45 a.m.
Consumer Sentiment at 10 a.m.
Baker Hughes Rig Count at 1 p.m.
Federal Reserve Board of Governor Lael Brainard speaks at 1:15 p.m.
Philadelphia Federal Reserve Bank President Patrick Harker speaks at 2:30 p.m.
Garrett Baldwin is a globally recognized research economist, financial writer, consultant, and political risk analyst with decades of trading experience and degrees in economics, cybersecurity, and business from Johns Hopkins, Purdue, Indiana University, and Northwestern.