Wednesday, May 18, 2022

Airline Stocks Take Flight

Trade of the Day Wake-Up Watchlist

The higher revenue projection can be attributed to increased travel demand and less COVID 19 restrictions.

Good morning Wake-Up Watchlisters! While you're sipping that first cup of rose pedal beetroot latte you'll see stock futures slipped as traders take in hawkish comments from Federal Reserve Chair Jerome Powell. Powell said the Fed "won't hesitate" to tighten policy beyond neutral to curb high inflation, fueling fears of a recession.

 

Here's a look at the top-moving stocks this morning.

Alaska Air Group (Nasdaq: ALK)

Alaska Air Group is up 3.00% premarket after United Airlines (Nasdaq: UAL) raised its outlook for the current quarter, which raised up the entire airline sector. The higher revenue projection can be attributed to increased travel demand and less COVID 19 restrictions. Keep an eye on the airline sector going forward.

 

Valero Energy Corp. (NYSE: VLO)

Valero is up 3.00% premarket as oil prices continue to climb. The oil/energy market continues to enjoy support from geopolitical uncertainty amid Russia's military operations in Ukraine. In fact, the Energy Select Sector SPDR has risen 40.7% year to date against a 17.5% loss for the broader S&P 500 benchmark. Valero is looking strong.

We rang the register in The War Room by positioning ourselves in the energy sector. We had a total return of 115.8% in 12 days during the Ukraine/Russia crisis. We're also currently in a trade that's yielding double-digit gains for our members. Click here to unlock this trade.

 

Penn National Gaming (Nasdaq: PENN)

Penn National Gaming is up 3.78% premarket after the Pennsylvania Gaming Control Board released gaming revenue figures for April 2022. All forms of gaming (including fantasy contests) generated $461,624,617 in revenue last month, which was a 14% increase compared to last year's April. Keep an eye on Penn National Gaming going forward.

 

Docusign (Nasdaq: DOCU)

Docusign is down 3.52% premarket after the electronic signature company lost 22.66% in shares in the past month. Over that same period, the business services sector lost 11.76%, while the S&P 500 lost 8.64%. The company has struggled to make a profit, despite solid revenue growth. With inflation being a major concern for investors, the fact that Docusign isn't profitable hurts the stock.

 

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Those are the top market movers today.

Happy trading!

The Wake-Up Watchlist Research Team

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