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Southwest Airlines Posted Profits while Southwestern Energy Led SPY

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Top stocks

Stocks at the top of the SPDR S&P 500 ETF (SPY) on January 21 were Southwestern Energy (SWN), CONSOL Energy (CNX), and Range Resources (RRC). These stocks went up 19.2%, 19.1%, and 18.4%, respectively, on the day. The rally in the oil prices boosted the energy stocks on Thursday.

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Southwest Airlines posted fourth quarter profits

The following graph compares the stock price movement of Southwest Airlines (LUV) and Delta Air Lines (DAL) since October 2015.

Southwest Airlines (LUV) gained 0.5% on January 21 while Delta Air Lines (DAL) went up 1.8% on the day. LUV stated that its quarterly profit tripled owing to low fuel prices and some changes to its fleet management. The company reported a profit of $536 million, or 82 cents per share, as against 28 cents per share in the same period a year ago. Its revenue went up 7.5% to $5.0 billion.

Technical snapshot

The beta values for LUV and DAL are 0.93 and 0.99, respectively, which is around one. The stocks are not very volatile and move in tandem with the market. The relative strength index (or RSI) of LUV is 32. When RSI nears 30, it suggests that the stock is either oversold or undervalued. LUV traded at $39.50, which is below its moving averages. Its 100-day, 50-day, and 20-day moving average value is $42, $44, and $42, respectively. S&P has rated the stock as “BBB” with a “Stable” outlook.

Bottom stocks

Stocks at the bottom of the SPY on January 21 were Seagate Technology (STX), Netflix (NFLX), and Fifth Third Bancorp (FITB). These stocks yielded -5.7%, -5.0%, and -4.8%, respectively, on the day.

For more read on US equities, visit our page US Equity ETFs page.

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