JetBlue Reportedly Cutting Costs as Travel Demand Slumps
2 minutes ago
JetBlue Airways CEO Joanna Geraghty has announced further reductions in unprofitable routes, along with other cost-saving strategies, in response to declining travel demand, according to reports.
As reported by CNBC, Geraghty’s memo to employees indicated that while JetBlue is optimistic about a potential rebound in demand and bookings, such a recovery will not completely make up for the losses endured this year. The airline continues to rely on borrowed funds to maintain operations.
JetBlue did not provide immediate comments in response to an Investopedia inquiry.
JetBlue stock fell nearly 8% on Tuesday, marking approximately a 46% decline in value so far this year, which surpasses the losses experienced by other U.S. airlines.
The company’s stock, which traded at over $20 four years ago, has faced a series of challenges, including the termination of its Northeast Alliance with American Airlines in 2023 and an unsuccessful merger attempt with Spirit Airlines last year.
In May, JetBlue and United Airlines announced a partnership termed “Blue Sky,” which is intended to offer reciprocal loyalty program benefits, including priority boarding.
Lennar Shares Fall as Homebuilder’s Profit Misses Estimates
40 minutes ago
Shares of Lennar Corp. dropped on Tuesday following a mixed second-quarter earnings report.
While the Miami-based homebuilder reported revenue exceeding analysts’ expectations, its profit, new orders, and average sale prices fell short of estimates. The company recorded earnings per share of $1.81 on revenue of $8.38 billion, which was below analyst expectations of $1.96 and $8.29 billion, respectively.
Lennar reported 22,601 new orders and 20,131 home deliveries at an average sales price of $389,000, compared to analyst forecasts of 22,934 new orders and an average sales price of $400,690. The company has projected similar figures for the third quarter, hinting at ongoing challenges in the housing market.
Shares were down 4% in late trading on Tuesday and have plummeted around 20% year-to-date.
Fed’s Policy Meeting Kicked Off Tuesday
1 hr 45 min ago
The Federal Reserve launched its two-day monetary policy meeting, with investors keenly awaiting insights into economic outlook and interest rate implications.
The Federal Open Market Committee (FOMC) is expected to maintain the federal funds rate in its current range of 4.25% to 4.5% during the meeting, unchanged since December.
This steady rate is a measure to deter borrowing and maintain control over inflation, which the Fed aims to keep at 2% annually. Recent data have indicated that key inflation measures are nearing the Fed’s target.
Following the meeting, Fed Chair Jerome Powell will conduct a press conference to discuss the decisions made and economic projections, with anticipation building around the potential adjustments to interest rates amid influencing factors such as trade policy.
Investor Sentiment Rebounds to Pre-Liberation Day Levels
2 hr 52 min ago
According to a Bank of America survey, investor sentiment has improved significantly, reaching the highest level since March.
The investor sentiment index climbed to 3.3 in June, reflecting a more optimistic outlook than the recent fears triggered by trade tensions due to President Trump’s tariffs.
Fund managers participated in the survey have responded by lowering cash levels and increasing their investments in emerging markets and energy sectors, while maintaining a cautious stance on U.S. stocks.
Notable shifts were recorded, as 54% of respondents expressed a belief that international stocks would outperform U.S. stocks over the next five years.
Jabil Leads S&P 500 Gainers After Strong Earnings Report
4 hr 26 min ago
Jabil’s shares surged to unprecedented highs following a strong fiscal third-quarter earnings report that exceeded projections.
The company’s revenue rose nearly 16% year-over-year to $7.83 billion, surpassing analyst expectations. Jabil’s CEO attributed the growth to heightened demand in the Intelligent Infrastructure segment fueled by AI advancements.
With updated full-year projections, the company now expects revenue of $29 billion and core earnings per share of $9.33, marking a significant increase from earlier forecasts.
Jabil shares were up over 12% in recent trading, solidifying its position as a leader among S&P 500 gainers.
T-Mobile Stock Slides as SoftBank Reportedly Sells Shares
5 hr 55 min ago
T-Mobile stock experienced a decline after reports surfaced that SoftBank Group sold a significant number of shares.
SoftBank reportedly sold 21.5 million shares at $224 each, totalling $4.8 billion, which falls below T-Mobile’s previous closing price.
This sale prompted a nearly 4% drop in T-Mobile shares, indicating a flat performance year-to-date.
SoftBank’s decision is part of a larger strategy to fuel investments in AI, following significant investments in companies like OpenAI.
Verve Therapeutics Soars as Eli Lilly Buys Gene Editing Firm
6 hr 32 min ago
Shares of Verve Therapeutics soared by 75% after Eli Lilly announced plans to acquire the company for approximately $1.3 billion.
Eli Lilly’s acquisition includes an initial payment to Verve shareholders, and additional payments contingent on the successful treatment of patients within a decade.
The deal is expected to close in the third quarter and marks a strategic move for Eli Lilly as it aims to expand its gene-editing capabilities.
Both companies’ stocks showed varied performances as the acquisition news unfolded.
