Thursday, 13 October 2016

DAL, UAL - climbing against the broader market

Whilst the broader market was struggling for much of the day, there was notable strength in the airlines, with Delta (DAL) and United (UAL) settling net higher by 2.0% and 1.5% respectively. Near term outlook is a little shaky, as the main market has broken recent key lows.

DAL, daily

UAL, daily


*very strong reversals were seen in the airline stocks today. DAL held support and reversed, whilst UAL broke support, but then battled strongly upward.

Suffice to add... DAL earnings were a touch mixed, with EPS coming in at $1.47, but revenue a touch under expectations at $10.45bn.

Broadly, I favour DAL over UAL, which is arguably a far more stable company, as also reflected in its stock price action.

*UAL, earnings due, Mon' Oct 17th, AH.