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- ✈️ Delta Air Takes Off
✈️ Delta Air Takes Off
Big moves decoded: ALB, PEP, and COST
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Market Performance
S&P 500: 6,735.11 ⬇️ 0.28%
Nasdaq: 23,024.63 ⬇️ 0.08%
Dow Jones: 46,358.42 ⬇️ 0.52%
Delta Air Curshes Estimates in Q3
Delta Air Lines (DAL) just proved that luxury travel isn't slowing down, even as economic uncertainty swirls.
The airline crushed expectations with adjusted earnings of $1.71 per share, versus the $1.53 per share Wall Street anticipated, posting Q3 revenue of $15.2 billion.
But here's the real story 👇
Premium cabin revenue jumped 9% to nearly $5.8 billion, while main cabin revenue fell 4% to just over $6 billion.
CEO Ed Bastian sees no signs of premium demand softening, and Delta forecasts that high-end revenue could surpass coach sales in the next few quarters.
That's a remarkable shift from 2010, when 60% of revenue came from main cabin; now it's down to 43%.
Delta's betting big on affluent travelers, and it's paying off. The airline projects Q4 earnings of $1.60-$1.90 per share (above the $1.65 estimate) and full-year EPS of $6, hitting the top of its guidance range.
With capacity cuts helping reduce oversupply and corporate travel rebounding 5%, Delta's positioned for continued margin expansion into 2026.
DAL stock currently has a Ziggma Stock Score of 75, ranking in the top percentile in terms of valuation.
Our Takeaway
Delta's premium strategy validates a key investment theme—consumers are bifurcating. High-income travelers continue to spend, while budget flyers pull back.
This trend extends beyond airlines to retail, hospitality, and consumer discretionary sectors.
Home insurance costs continue to climb, with premiums rising over 9% this year and more than 60% in the past five years. However, coverage hasn’t kept pace, leaving many homeowners paying significantly more for less protection. With affordability becoming a growing concern, it’s more important than ever to compare options—check out Money’s handy home insurance tool to find the best fit for you.
Market Overview 📈
Major indices pulled back from record highs on Thursday as the government shutdown entered its ninth day, with investors weighing fiscal concerns against resilient economic data.
The S&P 500 and Nasdaq both retreated after hitting fresh all-time intraday highs earlier in the session.
Despite the pullback, the S&P 500 has now gone 33 straight trading days without a 1% move in either direction, the longest streak since a 71-day run ended in January 2020.
Market calm persisted even as the Senate failed for the seventh time to pass funding bills, with little progress on negotiations.
The IRS announced furloughs for nearly half its workforce, and the FAA reported flight delays due to air traffic controller shortages.
JPMorgan CEO Jamie Dimon warned that markets could face a significant correction, telling BBC he'd put the probability at 30% versus the market's implied 10%.
He noted this could happen "in six months or two years," adding concern that U.S. reliability as a global partner has diminished following Trump's tariff policies.
Meanwhile, gold held above $4,000 per ounce while silver hit record highs, reflecting persistent safe-haven demand.
The labor market continues to show softness, which Raymond James calls the equity market's "best friend," as it supports hopes for rate cuts while consumer spending remains robust.
Stock Moves Deciphered 📈
🛍️ Costco (COST) ⬆️ 3%
The big-box retailer delivered strong September sales momentum that has investors excited about consumer resilience.
Costco reported $26.58 billion in net sales for the five weeks ended October 5, an 8% jump from last year's $24.62 billion.
The membership warehouse model continues proving resilient, with steady traffic and strong per-customer spending even as other retailers struggle.
⛏️ Albemarle (ALB) ⬆️ 5%
Albemarle gained alongside other lithium producers after China announced it would require export licenses for lithium-ion batteries containing specific materials.
Adding fuel to the rally, TD Cowen analysts boosted their price target to $85 from $70, citing improving fundamentals in the lithium market.
The stock has gained nearly 20% in October alone as pricing conditions stabilize and supply-demand dynamics improve for battery materials critical to the EV transition.
PepsiCo (PEP) ⬆️ 4%
The beverage and snacks giant beat Wall Street expectations in its third quarter, demonstrating pricing power and operational efficiency.
PepsiCo earned an adjusted $2.29 per share on $23.94 billion in revenue, topping analyst forecasts of $2.26 per share on $23.83 billion.
The results suggest that consumers continue to reach for trusted brands despite economic headwinds, and PepsiCo's diversified portfolio across beverages and convenient foods provides stability.
Headlines You Can't Miss 👀
📊 Oracle surged 3% after Baird initiated coverage with an “outperform” rating and $365 price target, citing strong AI positioning despite recent margin concerns.
🏭 Ferrari tumbled 14% on pace for worst day in 10-year history after cutting 2030 EV targets from 40% to 20% of model lineup.
💊 Akero Therapeutics rallied nearly 20% after announcing Novo Nordisk will acquire the company for $4.7 billion ($54/share) to expand the MASH treatment portfolio.
🏦 BlackRock's Rick Rieder reportedly performed "very well" in a Fed Chair interview with Treasury Secretary Bessent.
⚡ Rare earth stocks surged as China tightened export controls requiring licenses for products with 0.1%+ domestic rare earths content ahead of a potential Trump-Xi meeting.
📡 GoodRx jumped 5% after Reuters reported that a telemedicine company was discussing joining the TrumpRx platform for discounted prescription medications.
🏅 Gold miners retreated as Newmont fell 4% and Barrick dropped 3% while gold futures closed down 2% at $3,972.60 after breaking $4,000 earlier this week.
Trending Stocks 📊
✈️ Boeing (BA) ⬇️ 4%
Boeing shares dropped 4% to $216, making it the worst-performing stock in the Dow on Thursday.
Turkish Airlines' chairman said the carrier might switch a recent order for 150 737 MAX planes to Airbus if engine supply negotiations fail, adding pressure to Boeing's already challenged production outlook.
🏡 D.R. Horton (DHI) ⬇️ 5%
The homebuilder underperformed and pulled back almost 5% amid broader weakness in the housing sector.
Concerns about artificially inflated home prices and softening demand weighed on shares.
📏 MP Materials (MP) ⬆️ 7%
The rare earth materials producer rallied after BMO Capital Markets reinstated coverage at market perform, calling MP the U.S.'s "rare earth champion" following a Department of Defense partnership.
China's tightened export controls further boosted the stock as domestic supply chain concerns intensified.
What’s Next?
Key market and macro news 👇
📉 Brookfield Corp. Stock Split: Brookfield Corporation will complete a 3-for-2 stock split. This could increase liquidity and retail investor interest in this major asset management firm.
🎤 Unity Bancorp Earnings: Unity Bancorp is scheduled to report its Q3 earnings before the market opens. The results will provide insight into the health of regional banking.
💸 Hingham Institution for Savings Earnings: This regional bank will announce its Q3 earnings after the market closes, offering another data point on the financial sector's performance.
💄 Waldencast Earnings: The beauty and wellness company Waldencast will report its Q2 earnings. The report will be watched for signs of consumer spending strength.
🚗 DENSO Electrification Products Launch: Automotive supplier DENSO is launching new electrification products for Toyota. This could boost DENSO's stock and reflect the growing EV market trend.
Chart of the Day
Source: Visual Capitalist
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