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.
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.
Trends to Watch
Get Well Soon: Hasbro CEO Brian Goldner Takes Medical Leave, Effective Immediately (The Wall Street Journal)
Slower Growth: Goldman cuts forecast for U.S. economic growth in 2021 and 2022 (Reuters)
Speaking Out: Ethereum Co-Founder Opposes El Salvador Bitcoin Adoption Policy (Benzinga)
Breakout: Musk puppy pic was only one factor in Shiba Inu coin’s breakout week (Fortune)
Be Protected: 3 Ways Retail Investors Can Prepare For A Market Crash (Forbes)
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