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How Have Travel Stock Prices Reacted to Trump’s Win?

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Stock performance

After initial jitters, the S&P 500 recovered by a wide margin, rising 1.1% at the close of trading on November 9, 2016. Except for online travel agents, travel stocks also performed well.

Among airlines, Spirit Airlines (SAVE) and Allegiant (ALGT) rose the most, rising ~3% each. American Airlines (AAL) rose 1.7%, and Delta Air Lines (DAL) rose 1.6%. United Airlines rose 1.4%, and JetBlue Airways rose 1.3%, followed by Southwest Airlines, which rose 1.1%. Alaska Air Group rose 0.65%. No airlines were in the red.

All major hotel stocks were also in the green. Marriott (MAR) rose the most, gaining 1.5%, followed by Hilton Group (HLT), which rose 1.3%, and Wyndham, which rose 1.2%. Hyatt (H) was flat at 0.21%.

However, all online travel stocks were in the red. Priceline (PCLN) fell 0.5% on the day, and Expedia fell 1.8%. Ctrip (CTRP) fell nearly 3%, and TripAdvisor (TRIP) fell almost 16.6%, mainly due to its earnings release on November 8, 2016.

Needless to say, individual company dynamics and earnings performances should also be taken into consideration when analyzing these stock performances.

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Broader market performance

The S&P SPDR 500 ETF (SPY), which tracks the S&P 500 Index, has risen 1.1% in the same period. The Consumer Discretionary SPDR ETF (XLY), which tracks the performance of the consumer discretionary sector, including travel stocks, has risen 0.2%.

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