United Airlines stock managed to reverse earlier losses, however
American Airlines Group Inc (NASDAQ:AAL) is dragging the airline sector after slashing its second-quarter forecast and announcing its chief commercial officer will leave the company. Plus, Seaport Research Partners downgraded the stock to "neutral" from "buy."
At last check, AAL is down 14.8% to trade at $11.46 -- its lowest level since November, and worst single-day percentage drop since June 2020. The equity fell more than 20% over the last 12 months, and just gapped below the $12 level that had contained several pullbacks earlier this year.
Options bears are chiming in on American Airlines stock, with 712,000 puts exchanged so far today -- 18 times the average intraday volume -- compared to 180,000 calls. The most popular contract is the September 10-strike put, where new positions are being opened.
United Airlines Holdings Inc (NASDAQ:UAL) is reversing earlier losses as it brushes off these headwinds, however. The security attracted an upgrade from Jefferies to "buy" from "hold," as well as two price-target hikes after reaffirming its current-quarter outlook. UAL was last seen up 1.3% at $51.29.
The 60-day moving average is containing
United Airlines stock's pullback from a rally above $56. UAL is today set to snap a six-day losing streak, and sports a 24.3% year-to-date lead.