United Airlines’ Near-Term Demand

Today is Thursday, January 20, 2022.

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United Airlines’ Near-Term Demand

Shares of United Airlines (Nasdaq: UAL) dropped 1.94% in after-hours trading on Wednesday after the air travel giant revealed in its earnings that the omicron variant is impacting near-term demand.

Financials: United Airlines reported a loss of $1.60 per share and revenue of $8.19 billion in the quarter; both numbers were better than expected.

The Bad: The pandemic is hurting United Airlines’ first quarter. Capacity is now expected to be down for the full year compared to 2019, including first-quarter capacity dropping from 18% to 16% in the period. The company also sees higher costs.

The Good: Despite the headwinds, United Airlines says it is still on target to meet financial goals. The company is bullish due to a rebound in premium leisure travel, the recovery of business travel, and the re-opening of European borders next month.

Numbers: Shares of United Airlines are down 1.73% in the past year.

Final Thoughts: Delta Air Lines (NYSE: DAL) reported better-than-expected earnings last week. American Airlines (Nasdaq: AAL) will report earnings this morning.

Notables

Notable Earnings Today: Netflix (Nasdaq: NFLX), American Airlines (Nasdaq: AAL), Baker Hughes (Nasdaq: BKR), Union Pacific (NYSE: UNP), CSX (Nasdaq: CSX), Intuitive Surgical (Nasdaq: ISRG), Travelers (NYSE: TRV), KeyCorp (NYSE: KEY), SVB Financial (Nasdaq: SIVB), Fifth Third (Nasdaq: FITB), PPG Industries (NYSE: PPG), Regions Financial (NYSE: RF), Bank OZK (Nasdaq: OZK), Northern Trust (Nasdaq: NTRS), M&T Bank (NYSE: MTB), Synovus (NYSE: SNV), Limelight Networks (Nasdaq: LLNW).

Notable IPOs Today: Four Springs Capital Trust(NYSE: FSPR), Banyan Acquisition Corporation (NYSE: BYN), Generation Asia I Acquisition Limited (NYSE: GAQ), Barfresh Food Group Inc. Common Stock (Nasdaq: BRFH), Kairous Acquisition Corp. Limited Ordinary Shares (Nasdaq: KACL), Canna-Global Acquisition Corp. Class A Common Stock (CNGL), DUET Acquisition Corp. Unit (Nasdaq: DUETU), Rhodium Enterprises, Inc. (Nasdaq: RHDM).

Notable Equity Crowdfunding Campaigns Ending Today: Dope Pieces (HoneyComb), Enact Systems (StartEngine), Mighty Monkey (Republic).

Notable Economic Events Today: Jobless Claims (8:30 a.m. ET), Philadelphia Fed Manufacturing Index (8:30 a.m. ET), Existing home sales (10:00 a.m. ET), Crude Oil Inventories (11:00 a.m. ET).

Kinder Morgan Reports Solid Earnings

Shares of Kinder Morgan (NYSE: KMI) increased 1.55% in after-hours trading on Wednesday after the oil and gas infrastructure company posted solid earnings.

Financials: Kinder Morgan reported earnings per share of $0.28 and revenue of $4.43 billion; both were better than expected.

Working Well: Gasoline volumes were up 7% year-over-year and jet fuel volumes jumped 48% due to strong demand.

Headwinds: Pandemic-related restrictions around the country hit the company. Diesel volumes were down 4%.

Final Thoughts: Kinder Morgan also issued a dividend of $0.27 per share, which is a 3% increase year-over-year.

CBDCs Go Mainstream in 2022

The rise of central bank digital currency (CBDC) is one of the growing cryptocurrency trends that traders should watch for this year.

Definition: A CBDC is a digital currency that originates from a country’s central bank instead of a private institution.

History: From Russia to Brazil and from Sweden to Japan, several countries are dipping their toes in the CBDC waters.

Benefits: The advantages of CBDCs include limiting crypto fraud, efficient technology, and encouraging competition between banks.

Drawbacks: Some risks of CBDCs include undermining other cryptos, including stablecoins.

Final Thoughts: China has plans to roll out a digital yuan for the upcoming 2022 Winter Olympics.

Trends to Watch

Reduction: China cuts key rates, stepping up monetary stimulus effort to underpin economy (Reuters)

Tropic Like It’s Hot: Tropical Smoothie Cafe Is Said to Plan to Go Public This Year (Bloomberg)

Discount: World's Largest Bitcoin Fund Is Down Almost 18% (The Street)

Inflation: Procter & Gamble Says Prices Will Keep Going Up (The Wall Street Journal)

Breach: Crypto.com CEO confirms hundreds of accounts were hacked, hedges on other details (The Verge)

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