JetBlue Dumps American Airlines

Today is Thursday, July 6, 2023.

The Early Bird Index today is 57.24.

New to this newsletter? Sign up here.

JetBlue Dumps American Airlines

JetBlue (Nasdaq: JBLU) dropped 0.54% in after-hours trading on Wednesday after ending its special alliance with American Airlines (Nasdaq: AAL), which ticked down 0.38%.

Details: JetBlue is winding down its Northeast Alliance (NEA) with American Airlines following a recent federal ruling. The airline said that nothing will change immediately, but the alliance will end within the coming months.

Background: The NEA was created over 20 years ago to serve customers in New York and Boston. Both JetBlue and American Airlines shared passengers and revenue.

Now: With the NEA concluding, JetBlue said that it will focus its attention on its previously proposed combination with Spirit Airlines (NYSE: SAVE), which jumped 2.94% in after-hours trading.

Stock Price: Both JetBlue and American Airlines are up 43% this year, while Spirit is down 8%.

Final Thoughts: Despite lower travel demand, most airline stocks are having a good year. If Spirit’s combination with JetBlue goes through, then that could shake up the industry.

Notables

Notable Earnings Today: Levi Strauss (NYSE: LEVI), Simulations Plus (Nasdaq: SLP), Kura Sushi USA (Nasdaq: KRUS).

Notable IPOs Today: Lifezone Metals Limited (NYSE: LZM), Prestige Wealth Inc. Ordinary Shares (Nasdaq: PWM), Roper Technologies, Inc. Common Stock (Nasdaq: ROP), Electrovaya Inc. Common Shares (Nasdaq: ELVA).

Notable Equity Crowdfunding Campaigns Ending Today: Rumble Motors (StartEngine), PSYONIC (StartEngine), Tall Pines Distillery (Honeycomb), iMetabolic Biopharma (StartEngine), DRONEDEK (StartEngine), VirZOOM (StartEngine), Earth Robotics (StartEngine).

Notable Economic Events Today: ADP Nonfarm Employment Change (8:15 a.m. ET), Jobless Claims (8:30 a.m. ET), Exports/Imports/Trade Balance (8:30 a.m. ET), Services PMI (9:45 a.m. ET), S&P Global Composite PMI (9:45 a.m. ET), ISM Non-Manufacturing PMI (10:00 a.m. ET), JOLTs Job Openings (10:00 a.m. ET), ISM Non-Manufacturing Employment (10:00 a.m. ET), Crude Oil Inventories (11:00 a.m. ET).

BlackRock CEO's Bitcoin Talk

Photo by Traxer / Unsplash

Weeks after BlackRock (NYSE: BLK) said it wants a Bitcoin ETF, CEO Larry Fink talked about the importance of cryptocurrency investments.

Details: Speaking on Fox Business on Wednesday, Fink defended Bitcoin as an alternative investment. Fink described Bitcoin as an “international asset” that is “digitizing gold.”

Background: BlackRock filed for a spot Bitcoin ETF in June, which will track the price of Bitcoin assets and give investors direct exposure to the cryptocurrency. The SEC has rejected previous attempts to start a spot Bitcoin ETF.

Price: Bitcoin dropped about 1% on Wednesday, but is having a good year.

Final Thoughts: It is encouraging to see Larry Fink defend Bitcoin, but we are still a long way off from the SEC’s decision on the proposed spot Bitcoin ETF.

Nikola Gets Hydrogen Refueling Grant

Electric vehicle maker Nikola (Nasdaq: NKLA) ticked up 0.7% in after-hours trading on Wednesday after disclosing that it is getting a $41.9 million grant.

Details: Made possible under the Trade Corridor Enhancement Program (TCEP), the grant will help Nikola build six heavy-duty hydrogen refueling stations across Southern California. The company said that this project will play a part in the deployment of Nikola’s zero-emissions hydrogen refueling infrastructure.

Final Thoughts: Nikola is down 35% this year. The company plans to launch hydrogen fuel cell electric trucks this month, which could be good for investors.

Join 10,000+ Readers Across IB, PE, and VC (Sponsored)

World's most interesting finance newsletter, getting you caught up with what went down each week across private equity, investment banking, and the public markets. Subscribe Here

Trends to Watch

OK Boomer: America’s Retirees Are Investing More Like 30-Year-Olds (The Wall Street Journal)

Thank you for reading!

Forward to a friend and tell them to sign up here.

Want more investing tips? Listen to the podcast.

Show Your Support: Buy Me a Coffee.

Questions or comments? Hit reply to reach out.