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Markets Up on Strength in Resorts, Airline Bookings
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Both the Dow and S&P 500 set fresh all-time highs as of Monday’s closing bell, ramping up in the final minutes of the regular trading day. Most of the session, positive sentiment had been rather tepid overall, but the race northward took the Dow up 173 points, +0.53%, the S&P 500 +0.64%, the Nasdaq +1.05% to lead all major indexes, and the small-cap Russell 2000 breaking into the green late in the day, +0.31%.
As stimulus checks hit bank accounts across the nation and more Americans get their Covid-19 vaccine shots, pent-up demand in Travel & Leisure saw some big gains in select stocks today. MGM Resorts (MGM - Free Report) gained 5% on the day as Las Vegas casino capacity regulations are being eased from 35% to 50%. So far this year, MGM is +30% while competitor Caesars Entertainment (CZR - Free Report) is +35%. Flush checking accounts and less restricted vacation travel should spell profits across this industry.
Airlines are in much the same boat, as bookings have been gaining momentum over the past few weeks — +14% in just the last week alone. Shares of American Airlines (AAL - Free Report) were up 7% on the day (+75% from a year ago) while United Airlines rose 8%. And Blackstone Group (BX - Free Report) , along with Starwood, has paid $6 billion in all cash to purchase Extended Stay , which gained 13.5% on the day.
It wasn’t all stupendous news pointing to the Great American Reopening, however; as we mentioned, market indexes had been a tad lackluster for most of the trading day, only storming higher into the close. Eli Lilly (LLY - Free Report) dropped 9% on a less-than-stellar note about its Alzheimer’s Disease drug testing, falling an additional 100 basis points ahead of the closing bell. The drug maker is still up 14% year to date, with its Covid antibody treatment showing good strides in keeping coronavirus sufferers out of the hospital.
Tuesday morning we will see new economic data on Retail Sales, Import Prices and Industrial Production/Capacity Utilization, further articulating how price strength and productivity are manifesting in both Goods and Services industries over the past month. On the retail side, a seasonally slow period is following the later weeks of the holiday shopping season. Otherwise, we look for improvements in the data which suggest further gathering of economic traction.
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 77 billion devices by 2025, creating a $1.3 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2022.
Image: Shutterstock
Markets Up on Strength in Resorts, Airline Bookings
Both the Dow and S&P 500 set fresh all-time highs as of Monday’s closing bell, ramping up in the final minutes of the regular trading day. Most of the session, positive sentiment had been rather tepid overall, but the race northward took the Dow up 173 points, +0.53%, the S&P 500 +0.64%, the Nasdaq +1.05% to lead all major indexes, and the small-cap Russell 2000 breaking into the green late in the day, +0.31%.
As stimulus checks hit bank accounts across the nation and more Americans get their Covid-19 vaccine shots, pent-up demand in Travel & Leisure saw some big gains in select stocks today. MGM Resorts (MGM - Free Report) gained 5% on the day as Las Vegas casino capacity regulations are being eased from 35% to 50%. So far this year, MGM is +30% while competitor Caesars Entertainment (CZR - Free Report) is +35%. Flush checking accounts and less restricted vacation travel should spell profits across this industry.
Airlines are in much the same boat, as bookings have been gaining momentum over the past few weeks — +14% in just the last week alone. Shares of American Airlines (AAL - Free Report) were up 7% on the day (+75% from a year ago) while United Airlines rose 8%. And Blackstone Group (BX - Free Report) , along with Starwood, has paid $6 billion in all cash to purchase Extended Stay , which gained 13.5% on the day.
It wasn’t all stupendous news pointing to the Great American Reopening, however; as we mentioned, market indexes had been a tad lackluster for most of the trading day, only storming higher into the close. Eli Lilly (LLY - Free Report) dropped 9% on a less-than-stellar note about its Alzheimer’s Disease drug testing, falling an additional 100 basis points ahead of the closing bell. The drug maker is still up 14% year to date, with its Covid antibody treatment showing good strides in keeping coronavirus sufferers out of the hospital.
Tuesday morning we will see new economic data on Retail Sales, Import Prices and Industrial Production/Capacity Utilization, further articulating how price strength and productivity are manifesting in both Goods and Services industries over the past month. On the retail side, a seasonally slow period is following the later weeks of the holiday shopping season. Otherwise, we look for improvements in the data which suggest further gathering of economic traction.
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More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 77 billion devices by 2025, creating a $1.3 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2022.
Click here for the 4 trades >>