|

AAL Stock Price – American Airlines Group inc stabilizes despite Trump touting airline stimulus

  • 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:

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

AAL stock price 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. 

Author

Yohay Elam

Yohay Elam

FXStreet

Yohay is in Forex since 2008 when he founded Forex Crunch, a blog crafted in his free time that turned into a fully-fledged currency website later sold to Finixio.

More from Yohay Elam
Share:

Editor's Picks

AUD/USD edges higher as hot CPI inflation and hawkish RBA lift rate hike bets

The AUD/USD pair gathers strength to near 0.7035 during the Asian trading hours on Friday. The Australian Dollar edges higher against the US Dollar as hotter Australian CPI inflation data has bolstered expectations of Reserve Bank of Australia rate hikes.

USD/JPY meets support near 157.00

USD/JPY retreats for the third consecutive day on Friday, revisiting the 157.00 region before attempting some recovery as investors continue to assess the latest BoJ meeting, where the central bank left rates unchanged, as widely anticipated.

Gold sinks to fresh yearly lows despite risk-off mood as Fed rate hike bets weigh

Gold slips to fresh year-to-date lows on Friday. The metal struggles despite a risk-off mood across markets, as expectations of further Federal Reserve (Fed) interest rate hikes continue to dominate price action, leaving Gold on track to end the month in negative territory.


Ripple Price Forecast: XRP bulls defend $1.20 as sell-side pressure triggers liquidations
Ripple (XRP) trades around $1.25 on Friday, rising from a short-term support level established at $1.20. This minor upward correction follows a sharp sell-off, triggered amid reports of a hack attack on the Binance exchange that impacted approximately $6.3 billion. The attack drove the broader crypto market on edge, as Binance suspended both deposits and withdrawals to contain the situation.
BoJ recap: A pause for now... but Japan has entered a new inflation phase
The Bank of Japan left its short-term policy rate unchanged at 1.25% but delivered a distinctly hawkish message on the risk of an inflation overshoot. The decision passed by 8-1, with board member Takata dissenting in favour of an increase to 1.5%, while Governor Kazuo Ueda stressed that the Bank would continue adjusting policy as needed.
The 2% inflation target came from a throwaway remark. It now moves trillions
The Federal Reserve's 2% inflation goal grew out of an off-the-cuff remark by a New Zealand politician in 1988. Bond investors still price long-term US debt as if 2% holds, so a change in how the Fed measures inflation would move markets.