AAL Stock Price – American Airlines Group inc stabilizes despite Trump touting airline stimulus
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UNLOCK OFFER- NASDAQ: AAL tumbled down on Tuesday after Trump abruptly cut off stimulus talks.
- The president later tweeted his support for aid to airlines.
- American Airlines Group Inc's stock price rise has not reached 5% since the announcement.
The tweet trade is back – President Donald Trump has returned to moving stocks by the tips of his fingers. The Commander-in-Chief is recovering from his COVID-19 illness in the White House and has been active on his favorite social media network.
On Tuesday afternoon, the president took the bold step of announcing the end of stimulus talks with Democrats. Both parties have been mired in negotiations since July, but were making progress with the gap narrowing to around $600 billion – Democrats want a total relief package of $2.2 trillion and Republicans agreed to $1.6 trillion.
One of the items on the agenda was aid to airlines, which were hard-hit by travel bans and people's fear of flying. Trump's proclamation sent stocks down, causing American Airlines Group Inc. to shed 4.5% and close the session at $12.53.
However, the president later seemed to backtrack – the economy is the single topic in which he competes with rival Joe Biden. Moreover, Trump uses equities as a measure of his success. One specific tweet refers to the industry:
The House & Senate should IMMEDIATELY Approve 25 Billion Dollars for Airline Payroll Support, & 135 Billion Dollars for Paycheck Protection Program for Small Business. Both of these will be fully paid for with unused funds from the Cares Act. Have this money. I will sign now!
— Donald J. Trump (@realDonaldTrump) October 7, 2020
The House & Senate should IMMEDIATELY Approve 25 Billion Dollars for Airline Payroll Support, & 135 Billion Dollars for Paycheck Protection Program for Small Business. Both of these will be fully paid for with unused funds from the Cares Act. Have this money. I will sign now!
— Donald J. Trump (@realDonaldTrump) October 7, 2020
An injection of $25 billion in federal funds to airlines would serve as a substantial boost to American Airlines.
There is an even greater chance of recovery if Democrats win a clean sweep and approve a generous multi-trillion deal.
More Who will be the next president? Markets seem to care more about Congress' actions (for now)
AAL Stock Chart
NYSE: AAL ended Thursday's trading at $13.16 following that tweet, an increase of $0.62 in the last couple of sessions. While that didn't fully compensate for Tuesday's fall, it put shares at the higher range for October, and with an opening to hit the higher ground.
The upside target is $13.75, a high point in mid-September. Support is at $12.25 and $11.77. It is essential to note American Airlines is still trading at the bottom of the range.
- NASDAQ: AAL tumbled down on Tuesday after Trump abruptly cut off stimulus talks.
- The president later tweeted his support for aid to airlines.
- American Airlines Group Inc's stock price rise has not reached 5% since the announcement.
The tweet trade is back – President Donald Trump has returned to moving stocks by the tips of his fingers. The Commander-in-Chief is recovering from his COVID-19 illness in the White House and has been active on his favorite social media network.
On Tuesday afternoon, the president took the bold step of announcing the end of stimulus talks with Democrats. Both parties have been mired in negotiations since July, but were making progress with the gap narrowing to around $600 billion – Democrats want a total relief package of $2.2 trillion and Republicans agreed to $1.6 trillion.
One of the items on the agenda was aid to airlines, which were hard-hit by travel bans and people's fear of flying. Trump's proclamation sent stocks down, causing American Airlines Group Inc. to shed 4.5% and close the session at $12.53.
However, the president later seemed to backtrack – the economy is the single topic in which he competes with rival Joe Biden. Moreover, Trump uses equities as a measure of his success. One specific tweet refers to the industry:
The House & Senate should IMMEDIATELY Approve 25 Billion Dollars for Airline Payroll Support, & 135 Billion Dollars for Paycheck Protection Program for Small Business. Both of these will be fully paid for with unused funds from the Cares Act. Have this money. I will sign now!
— Donald J. Trump (@realDonaldTrump) October 7, 2020
The House & Senate should IMMEDIATELY Approve 25 Billion Dollars for Airline Payroll Support, & 135 Billion Dollars for Paycheck Protection Program for Small Business. Both of these will be fully paid for with unused funds from the Cares Act. Have this money. I will sign now!
— Donald J. Trump (@realDonaldTrump) October 7, 2020
An injection of $25 billion in federal funds to airlines would serve as a substantial boost to American Airlines.
There is an even greater chance of recovery if Democrats win a clean sweep and approve a generous multi-trillion deal.
More Who will be the next president? Markets seem to care more about Congress' actions (for now)
AAL Stock Chart
NYSE: AAL ended Thursday's trading at $13.16 following that tweet, an increase of $0.62 in the last couple of sessions. While that didn't fully compensate for Tuesday's fall, it put shares at the higher range for October, and with an opening to hit the higher ground.
The upside target is $13.75, a high point in mid-September. Support is at $12.25 and $11.77. It is essential to note American Airlines is still trading at the bottom of the range.
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