Pre-Market Report: Mixed Global Markets, Strong Market Sentiment

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Part 4
Pre-Market Report: Mixed Global Markets, Strong Market Sentiment PART 4 OF 4

Delta Air Lines: S&P 500’s Top Gainer on October 3

Top gainers

The S&P 500’s top gainers on October 3, 2017, were:

  • Delta Air Lines (DAL) rose 6.6%.
  • United Continental Holdings (UAL) rose 6.1%.
  • American Airlines (AAL) rose 5.8%.
  • Adv Micro Devices (AMD) rose 5.6%.
  • Lennar (LEN) rose 4.8%.

Delta Air Lines: S&amp;P 500’s Top Gainer on October 3

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Delta Air Lines 

Delta Air Lines, which is a major US airline, was the S&P 500’s top gainer on October 3. The buying pressure increased in Delta Air Lines after its positive September results and management’s healthy outlook on Tuesday.

Hurricane Harvey and Hurricane Irma disrupted air travel at the end of August and beginning of September. The hurricanes damaged infrastructure and resulted in canceled flights. Wall Street expected the hurricanes to weigh on airline companies’ 3Q17 outlook. However, Delta Air Lines was impacted less than expected, which improved the sentiment on airline stocks. According to Delta Air Lines’ management, Hurricane Irma impacted the company’s results by $120 million—less than analysts’ estimate.

Delta Air Lines lowered its 3Q17 operating margin from 16.5%–17.5% to 15.5%–16.5%. The revenue per available seat mile rose 2% in the third quarter. It’s equal to the lower end of the forecast that management released last month. The market sentiment improved after the announcement. Despite devastating storms disrupting the flights, Delta Air Lines managed to achieve the lower end forecast.

Delta Air Lines’ positive results also improved the market sentiment in airline stocks and pushed American Airlines and United Airlines higher. On October 3, Delta Air Lines rose 6.6% and closed the day at $51.25—the highest close in more than two months.


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