Southwest Cancels 1,000 Flights

And, the first crypto ETF.

Steven Lerner 11.Oct.2021

Today is Monday, October 11, 2021.

Southwest Cancels 1,000 Flights on Sunday

Keep on an eye on shares of Southwest Airlines (NYSE: LUV), which was forced to cancel over 1,000 flights on Sunday, representing over 28% of its scheduled flights for that day.

Details: Southwest blamed the massive cancellations on issues with air traffic control and weather. Cities such as Chicago, Denver, Baltimore, and Dallas were among the most affected destinations.

Not So Fast: The Federal Aviation Administration (FAA) responded Sunday by attributing the cancellations to staff shortages and aircraft issues.

Bigger Picture: These cancellations happened days after the pilots union for Southwest wanted to block an upcoming vaccine mandate. Could workers for other airlines follow suit?

Numbers: Shares of Southwest are up over 19% this year, including 10% in the past month. The travel sector is seeking to have a post-pandemic recovery.

Final Thoughts: The fact that these cancellations happened during a holiday weekend makes it much worse.

Notables

Notable Earnings Today: n/a.

Notable IPOs Today: n/a.

Notable Equity Crowdfunding Campaigns Ending Today: Audubon Bioscience (MicroVentures), Cannabiscope (MicroVentures).

Notable Economic Events Today: n/a.

SEC Finally Approves Crypto ETF (Sort Of)

After years of waiting, we finally will get a cryptocurrency-based exchange-traded fund (ETF), with the U.S. Securities and Exchange Commission (SEC) approving one just a few days ago.

Details: The Volt Crypto Industry Revolution and Tech ETF, which will trade with the ticker BTCR, has been approved.

Fine Print: The ETF will not hold actual cryptos. In fact, it will hold publicly-listed stocks that are deeply involved in crypto, either through holding assets or making money through crypto mining. Also, the ETF will own some stocks in other sectors as a hedge.

Bigger Picture: It is possible that by the end of the year there could be other crypto ETFs that win SEC approval, including Bitcoin futures.

Importance: A crypto ETF gives investors exposure to the asset without having to actually buy the digital coins.

Final Thoughts: An analyst from Bloomberg did predict that the SEC would grant its first approval by October for a crypto ETF, and it turns out that he was right.

ExxonMobile: Should You Buy?

After a disastrous year during the pandemic, shares of ExxonMobile (NYSE: XOM) are having a resurgent year. But is it worth buying?

Numbers: Shares of ExxonMobile are up nearly 50% this year, including 15% in the past month. The stock also has a good dividend yield, making some investors very happy.

The Good: ExxonMobile, like other stocks in the oil and gas space, is benefiting from rising crude oil prices. If the trend continues, ExxonMobile might continue to climb.

The Bad: However, potential climate change regulations could threaten ExxonMobile's profits. The company is also dealing with union issues in a Texas facility.

Final Thoughts: All eyes will be on ExxonMobile when it reports earnings at the end of the month.