BITNEWS

Spirit Airlines, fresh from bankruptcy, is ready to take on the new Southwest, CEO says

Stocks fell on Thursday, with equities unable to shake a three-week market rout under the weight of new tariff threats from President Donald Trump.The S&P 500 dropped about 1.5%, bringing its losses from its record close in February to 10%. If the benchmark closes at these levels, it will be an official market correction, according to Wall Street. The Dow Jones Industrial Average fell 562 points, or 1.4%, its fourth day of declines putting it below the 41,000 level. The Nasdaq Composite shed 2.2% with shares like Tesla and Apple lower.Trump took to his Truth Social platform Thursday morning to threaten 200% tariffs on all alcoholic products coming from countries in the European Union in retaliation for the bloc’s 50% tariff on whisky. “This will be great for the Wine and Champagne businesses in the U.S.,” he wrote. Trump later remarked that he wouldn’t be changing his mind on a broader group of tariffs set to be implemented on April. 2.The disorderly rollout of Trump’s U.S. trade policy has rattled markets this month, with investors worried it was pressuring corporate and consumer confidence. The losses have intensified this week. The S&P 500 and Nasdaq are respectively on track for losses of 4.2% and 4.8% week to date. The Dow is off 4.6% in the period, heading for its biggest weekly decline since March 2023.The Nasdaq was already well into correction territory heading into Thursday’s session and now sits more than 14% below its recent record. The small-cap benchmark Russell 2000 is approaching a bear market, with it down nearly 19% from its high.“These tariff wars are intensifying before they’re abating. It just adds to unpredictability and uncertainty, and that’s a negative for stocks, obviously,” said Jed Ellerbroek, portfolio manager at Argent Capital Management.On Thursday, Treasury Secretary Scott Bessent said that the Trump administration is more focused on the long-term health of the economy and markets, rather than short-term movements. “I’m not concerned about a little bit of volatility over three weeks,” he said on CNBC’s “Squawk on the Street.”Stocks fell despite some encouraging inflation signs. February’s producer price index — which measures the cost of producing consumer goods and is a good indicator of inflationary pressures — was flat that month, compared with an expected increase. This follows a softer-than-expected February consumer price index reading.Though market strategists have been watching for a technical bounce after the recent sell off, some say the latest inflation data likely isn’t enough to lead to a sizable rebound. Concerns over Trump’s trade policies remain a key hangover on investor sentiment, and they throw into question how the Federal Reserve may proceed on interest rates.“I think the Fed would like for rates to be lower, and the economy would like for rates to be lower ... but we’re not seeing body language from the Fed that’s saying they’re imminently going to get off the pause button here,” Ellerbroek added.Home construction fund trading at lowest level since 2023On Thursday, the iShares Home Construction ETF (ITB) was trading 2% lower, on pace for its fifth daily decline in a row and hitting its lowest level since Dec. 13, 2023.This would mark the fund’s longest slide, since an eight-day losing streak in December 2024.Thursday’s leg down were led by Arhaus, Home Depot, Builders FirstSource and NVR, which were all more than 3% lower on the day.— Nick Wells, Lisa Kailai HanFears around cruise lines are ‘overdone,’ Barclays saysRising economic uncertainty and fears of waning demand have pushed cruise stocks lower recently. Norwegian Cruise Line, Carnival and Royal Caribbean have respectively fallen 28%, 21% and 15% this month.But in a Thursday note, Barclays analyst Brandt Montour called these fears “overdone.”“In the midst of severe macro volatility and mounting economic uncertainty, it is unsurprising that Cruise Line shares have underperformed the market (-23% on average over the last month, vs. SPX -7%), based on the industry’s long period of uninterrupted recovery post-COVID, crowded investor positioning, and outsized operating leverage within the business (and history),” he wrote. “The recent equities rout implies a roughly 5% impact to yields. We see this scenario as unlikely given 1) the still significant pricing discount to land-based vacations, which should act as a buffer to demand (this buffer was much thinner in past downturns), 2) decelerating/modest supply growth, and 3) a more rational industry pricing structure.”— Lisa Kailai HanWolfe Research sees a ‘period of sustained weakness’ ahead for cryptoDespite cryptocurrencies slipping from their all-time highs in recent sessions, Wolfe Research said in a recent note that now was not the time to buy in.“While we hold out hope for the group, knowing bullish commentary / news is always capable of sending prices soaring overnight, we are bound to the charts. That said, we are seeing notable breakdowns across the board through key support levels. This is not the action of a group readying to rally,” wrote analyst Rob Ginsberg. “Instead, we fear it speaks towards a shift into a period of sustained weakness.”He added: “A move above $91-92k would allow for a sigh of relief in the near term — Our sense is that it would likely get sold however. We simply don’t see an environment capable of supporting a meaningful turnaround in Crypto. Outside of using BTC as a store of value, we see little reason to step into other coins while risk off activity continues to prevail.”— Lisa Kailai Han13 stocks in the S&P 500 trade at new 52-week lowsMostafa Bassim | Anadolu | Getty ImagesPeople walk past Target Store in Midtown Manhattan on March 6, 2025 in New York City, United States. During Thursday’s session, 13 stocks in the S&P 500 index traded at new 52-week lows.Tickers that hit this milestone included:Deckers Outdoor trading at lows not seen since January 2024Ross Stores trading at lows not seen since November 2023Target trading at lows not seen since November 2023Agilent trading at lows not seen since November 2023Cooper Companies trading at lows not seen since October 2023Builders FirstSource trading at lows not seen since November 2023Hubbell trading at lows not seen since January 2024IDEX Corp trading at lows not seen since July 2022Adobe trading at lows not seen since May 2023PTC Inc trading at lows not seen since November 2023Avery Dennison trading at lows not seen since November 2023LyondellBasell trading at lows not seen since September 2022Host Hotels trading at lows not seen since October 2023 — Christopher Hayes, Lisa Kailai HanShares of LVMH fall on tariff fearsShares of LVMH, which trade in France, shed 1% on Thursday.The luxury stock, which owns brands such as Hennessy and Moët & Chandon, slipped on more trade war fears after President Donald Trump threatened to levy a 200% tariff on wine and champagne exported from the European Union. LVMH is now on pace for its ninth straight negative day, which would mark its longest losing streak since August 2021.— Adrian van Hauwermeiren, Lisa Kailai HanCiti sees 32% upside ahead for BoeingM. Scott Brauer | Bloomberg | Getty ImagesBoeing Co. signage outside the company’s manufacturing facility in Renton, Washington, US, on Sept. 12, 2024.The market is undervaluing Boeing‘s long-term growth potential, according to Citi.While the market is pricing in less than 1% free-cash-flow growth in perpetuity, the firm expects 3% to 5% growth rate for the foreseeable future in both the defense end and commercial aerospace markets, analyst Jason Gursky said in a note Thursday.He reiterated his buy rating and $210 price target, which implies 32% upside from Wednesday’s close.“On the Commercial side, we see structural growth driven by necessity stemming both from the need of replacing an aging aircraft fleet as well as anticipated growth in global passengers,” Gursky wrote.On the defense side, he expects strong near-term growth due to supplemental funding for Ukraine and Israel. In addition, the stated objective in the National Security and Defense Strategies is to invest in ensuring peace, he said.Shares of Boeing are down nearly 10% year to date.— Michelle FoxGold closing in on record high from Feb. 24Gold’s April-dated futures were last trading near 2,963.3, near their highs of the session. They were closing in on their record high of 2,974 from Feb. 24.Gold has gained 1.6% week to day, pacing for their second weekly gain. The VanEck Gold Miners ETF (GDX), which encompasses both gold and silver miners, rose 2% and was on pace for its third straight day of gains.— Lisa Kailai HanStocks open lowerThe S&P 500 opened lower on Thursday, giving up some of its Wednesday gainsThe market benchmark shed 0.3%. The Dow Jones Industrial Average slipped 85 points, or 0.2%. The Nasdaq Composite lost 0.4%.— Lisa Kailai HanIntel, Adobe among the names making moves before the bellDado Ruvic | ReutersCheck out the names making moves in the premarket:Intel – The stock jumped 10% after the company said it had appointed Lip-Bu Tan – who was previously the chief executive of software company Cadence Design Systems – as its new CEO. Tan is replacing interim co-CEOs David Zinsner and MJ Holthaus.UiPath – Shares fell 18% following the software company’s fourth-quarter revenue and first-quarter sales guidance missing Wall Street estimates. For the fourth quarter, UiPath posted revenue of $424 million, below the $425 million that analysts surveyed by LSEG were expecting. The company also expects revenue for the current quarter to come in between $330 million and $335 million, while analysts were looking for $368 million.Adobe – Shares dropped 6% on the heels of Adobe issuing lackluster fiscal second-quarter guidance. The company sees earnings of $4.95 per share to $5 per share on revenue of $5.77 billion to $5.82 billion in the period. Analysts had penciled in earnings of $5 per share on $5.8 billion in revenue. Read the full list here.— Sean ConlonWholesale inflation unchanged in FebruaryThe producer price index, a measure of wholesale inflation, was flat in February — another potential sign that inflation pressures may be ebbing. Economists polled by Dow Jones expected a month-over-month increase of 0.3%.— Fred ImbertRussia rejects Ukraine ceasefire deal, report saysReuters Tv | Via ReutersRussia’s President Vladimir Putin walks along a corridor as he visits a control centre of the Russian armed forces in the course of Russia-Ukraine conflict in the Kursk region, Russia, March 12, 2025, in this still image taken from video. Russian Pool/Reuters TV via REUTERS ATTENTION EDITORS – THIS IMAGE WAS PROVIDED BY A THIRD PARTY.The proposed 30-day ceasefire in Ukraine has been rejected by a Russian negotiator, the Wall Street Journal reported Thursday morning.“This is nothing other than a temporary time-out for Ukrainian soldiers, nothing more. Our goal is a long-term peaceful resolution,” Yuri Ushakov, a senior aide to Russian President Vladimir Putin, told Russian state television on Thursday, according to the report. “Steps that imitate peaceful actions are not needed.”Ukraine had previously agreed to the deal.— Jesse PoundMorgan Stanley double upgrades Houlihan LokeyHoulihan Lokey is a defensive play as market volatility pressures investment banking, per Morgan Stanley. The firm double-upgraded its rating on Houlihan Lokey shares to overweight from underweight, citing its lower earnings volatility. Because the firm’s revenues are more tied to restructuring, which is counter-cyclical, relative to its competitors, its revenues are more resilient, per analyst Betsy Graseck. “Our Overweight rating reflects a way to play the bear scenario, as HLI generally holds up better than peers in risk-off environments and has a lower beta to the overall M&A cycle,” Graseck wrote in a note on Thursday. — Hakyung KimBarclays downgrades American Eagle OutfittersErin Scott | ReutersA view of an American Eagle Outfitters store in Arlington, Virginia.Barclays is stepping away from American Eagle Outfitters as the macro backdrop deteriorates.The firm downgraded shares of the apparel company to underweight from equal weight. Analyst Adrienne Yih also lowered her price target to $10 from $17.“We expect the weakening macro to weigh on teen spending in 2025,” Yih wrote in a note on Wednesday.Rising uncertainty from President Donald Trump’s tariffs is another headwind for the company, per Yih. American Eagle manufactured around a fifth of its global production in China last year. Potential tariffs on Vietnam are another risk for the company, which made up to 20% of its goods in the country.— Hakyung KimAsia-Pacific stocks fall after soft U.S. inflation report pushes two Wall Street benchmarks up; Seven & i shares rise as much as 3.6%Asia-Pacific markets fell on Thursday after a soft inflation report in the U.S. helped two of the three benchmarks on Wall Street reverse course from two days of losses.The consumer price index — a broad-based measure of costs across the U.S. economy — increased 0.2% month-on-month in February, putting the annual inflation rate at 2.8%.Over in Japan, the benchmark Nikkei 225 ended the day flat at 36,790.03 while the broader Topix index edged up 0.13% to close at 2,698.36.Shares of Seven & i Holdings gained as much as 3.60%, following Canadian convenience store operator Alimentation Couche-Tard’s press conference on buying the 7-Eleven operator.Couche-Tard, which owns the Circle-K convenience store chain, has been pursuing Seven & i for months and put in a $47 billion bid for the Japanese retail giant. This would be Japan’s largest-ever foreign buyout if the deal is completed. However, Couche-Tard has so far mostly received frosty reception from Seven & i.Couche-Tard founder and Executive Chairman Alain Bouchard said the company has had “many discussions” with Seven & i’s new CEO Stephen Dacus, “but it has always stopped at the regulatory ask, the thing that we cannot overcome.”South Korea’s Kospi index closed flat at 2,573.64. Meanwhile, the small-cap Kosdaq fell 0.92% to close at 722.80, reversing course from gains earlier in the sessionHong Kong’s Hang Seng Index dipped 0.57% to close at 23,463.26 while mainland China’s CSI 300 fell 0.40% to 3,911.58, in choppy trade.Australia’s S&P/ASX 200 ended the day 0.48% lower at 7,749.10. This is the third consecutive day that the index is ending in negative territory.India’s benchmark Nifty 50 was down 0.18%, while the BSE Sensex was flat as at 1.30 p.m. local time.— Amala BalakrishnerDan Niles says tech sell-off is driven by revenue estimates, not tariffsHedge fund manager Dan Niles believes megacap tech stocks were knocked down by concerns of revenue growth instead of tariffs. “It’s not the tariffs knocking these tech stocks down. It is the fact that revenue estimates were six out of the seven biggest in the Mag Seven all went down for Q1 after reporting Q4,” he said on CNBC’s “Closing Bell.”The founder of Niles Investment Management said he bought the dip in these beaten-down shares this week. Going into 2025, Niles named cash as a top pick for the first time since the market drop in 2022. He also didn’t recommend Mag Seven names in his top five picks.— Yun LiWe’ve largely seen a rotation rather than a selloff, strategist saysSpencer Platt | Getty ImagesTraders work on the floor of the New York Stock Exchange (NYSE) on March 12, 2025 in New York City.Much of the recent market action can be contributed to an unwinding of investors’ positioning, according to Michael Green, chief strategist of Simplify Asset Management.“The really key thing that I would highlight is that rather than an outright sell-off, so far what we’ve seen is largely rotation,” he told CNBC in an interview. “There’s been a combination of money rotating out of the United States and into Europe, Japan, Canada. To a certain extent that’s contributed to the weakness in the dollar as that capital account money has returned to their home countries.”Green added: “That likely puts additional pressure on forward inflation trends, and so offset some of the benefits of the weaker economy. It also suggest that there may actually be more issues with inflation than we had anticipated.— Lisa Kailai HanAdobe, SentinelOne moving after market closeCheck out the companies making headlines in after-hours trading:Adobe — The software vendor’s shares slipped around 3% after the company issued an outlook for the fiscal second quarter that failed to impress investors. Adobe said revenue for the period would range between $4.27 billion and $4.30 billion, compared to the StreetAccount consensus estimate of $4.29 billion. Adjusted earnings are expected to land between $4.95 and $5 a share, while analysts sought $5 per share.American Eagle Outfitters — American Eagle issued weak guidance, leading shares about 5% lower. For the current quarter, the company expects to see a mid-single-digit decline in sales, while analysts polled by LSEG expected revenue to increase 1.3%. The company still beat on the bottom line and same-store sales came in ahead of expectations.SentinelOne — The cybersecurity stock declined about 15% after SentinelOne gave a disappointing revenue outlook, expecting first-quarter revenue to come out at $228 million, while analysts polled by LSEG had forecast $235 million. The company exceeded earnings and revenue expectations in its fourth quarter, however. For the full list, read here.— Pia SinghStock futures open little changedFutures tied to the S&P 500 dropped less than 0.1% shortly after 6 p.m. ET on Wednesday. Futures tied to the Dow Jones Industrial Average lost 19 points, or 0.05%, while Nasdaq 100 futures shed 0.1%.— Pia Singh

ONLY AVAILABLE IN PAID PLANS

Published by: nbcsandiego

Read full article here: https://www.nbcsandiego.com/news/business/money-report/spirit-airlines-fresh-from-bankruptcy-is-ready-to-take-on-the-new-southwest-ceo-says/3778022/