Dow declined 291, but advancers over decliners 2-1 & NAZ was off 24. The MLP index went up 1+ to the 229s & the REIT index fell 2+ to the 292s. Junk bond funds were purchased & Treasuries had buying, reducing the yield in the 10 year Treasury by a big 12 basis points to 3.41%. Oil rose again, up 1+ to the 81s, & gold recovered 6 to the 1916.
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Wholesale inflation fell faster than expected in December
United Airlines (UAL) reported Q4 & outlook for early 2023 topped estimates thanks to strong travel demand & high fares. Consumers' appetite for air travel & willingness to pay higher fares has helped airlines return to profitability despite higher costs for fuel, labor & other expenses tied to ramping their networks back up. Meanwhile, aircraft delivery delays & training backlogs have constrained airlines' growth, keeping fares high. UAL reported an $843M profit for the last 3 months of 2022, a 31% increase compared with 3 years earlier, on revenue of $12.4B. That revenue was almost 14% higher than the same period in 2019, before the pandemic, despite flying 9% less, helping it post a profit despite a 21% increase in unit costs from 3 years earlier. For Q1-2023, UAL expects to generate revenue 50% higher than the same period of 2022 & expects Q1 EPS to be 50¢ - $1, above the forecast of 25¢. UAL expects to expand flying 20% in Q1 from a year ago. It forecast capacity growth in the high teens for the full year over 2022. UAL also said that staffing issues, plane shortages & outdated tech would restrict industry capacity this year. CEO Scott Kirby said that the airline's pilots union is working on electing a new leader after its last head resigned, which should be finalized later this month. Once the new leader has been selected, Kirby expects negotiations to resume, which he estimated to be by Feb 7. UAL said that it expects new contracts with pilots, flight attendants, technicians & airport employees to keep its non-fuel costs steady over 2022. The stock dropped 1.
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club.ino.com/trend/analysis/stock/UAL_aid=CD3289&a_bid=6ae5b6f7
United results top estimates as demand remains resilient despite high fares
Homebuilder sentiment rises in January for the first time in a year
Traders are looking thru corp financial updates for signs of an earnings recession that many analysts have warned about. Today Microsoft (MSFT), a Dow stock, announced it was laying off 10K. The economy is sort of recovering, but there are still mixed signals being sent. And gold remains a hot investment for nervous investsors.Dow Jones Industrials
