Saturday's attack is the biggest on Saudi oil infrastructure since Saddam Hussein's invasion of Kuwait in 1990.Energyread more
"Blaming Iran won't end disaster. Accepting our April '15 proposal to end war & begin talks may," Zarif said on Twitter.Energyread more
Oil prices are expected to jump as much as $10 per barrel after a coordinated drone strike hit Saudi Arabia's largest oil field, forcing the kingdom to cut its oil output in...Marketsread more
Apple's new iPhones can still send texts, download apps, and make video calls, but the company spends a lot of time and effort marketing its new phones as powerful photography...Technologyread more
The trucking industry is worth hundreds of billions of dollars per year. Uber is going after this market with Uber Freight, an online platform that matches truckers with...Technologyread more
Some U.S. manufacturers say tariffs, if targeted, will help address longstanding unfair trade practices like intellectual property theft.Traderead more
Supporters of a $15 minimum wage ballot initiative in Florida argue the state's inflation-tied pay hikes have not gone far enough.2020 Electionsread more
Saudi Arabia shut down half its oil production Saturday after drone strikes hit the world's largest oil processing facility in an attack claimed by Yemen's Houthi rebels.Politicsread more
Trusii's hydrogen water machines were supposed to help users with their health problems, but customers claim the company is involved in a giant scam.Technologyread more
The decoupling of the world's two weightiest economies seems as inescapable as its extent and global impact remains incalculable.Politicsread more
BlackBerry has reinvented itself to become a leader in securing mobile communications and in embedded communications. Next year it plans to roll out new products. CEO John...Evolveread more
Shares of airlines fell Thursday after poor earnings and a big pay raise for pilots and flight attendants raised concern on Wall Street that the sector was returning to the days when the stocks rarely made good investments.
American Airlines shares closed down more than 5 percent Thursday after its earnings and a downgrade from JPMorgan. Other airline stocks such as United Continental closed down almost 1 percent, while Delta Airlines, closed over 1 percent lower.
Southwest Airlines closed down more than 2 percent after it reported lower-than-expected earnings per share of 61 cents versus the 63 cent Wall Street consensus.
Even though American Airlines posted first quarter earnings per share of 61 cents versus the 57 cents Street average estimate, investors focused on the implications of the company's new pay raises for its employees.
JPMorgan airline analyst Jamie Baker downgraded American to neutral from overweight on the new labor deal.
"We are troubled by AAL's wealth transfer of nearly $1 billion to its labor groups. In addition to raising fixed costs, American's agreement with its labor stakeholders establishes a worrying precedent, in our view, both for American and the industry," Baker wrote in a note to clients Thursday. "In our minds, this is a seminal event, and represents the first, credible potential blow to our long-held 'it's different this time' investment thesis."
The analyst cited how the new agreement raised flight attendant and pilot pay by 5 percent and 8 percent, respectively.
"Unfortunately the American move today has emboldened unions probably across the entire space. It's led them to believe you can come back mid-contract [and] ask for whatever you want," Baker said on CNBC's "Halftime Report" Tuesday. "And that in turn makes that march toward higher multiples, not impossible, but a little bit more challenging."
As a result, he lowered his price target for American Airlines to $52 from $59, representing 18 percent upside from Thursday's close of $43.98 per share.
Last November, Warren Buffett's Berkshire Hathaway bought stakes in American, United and Delta in a big reversal for the value investing legend, who like most investors had sworn off the sector for decades. The stocks are still higher since that Buffett investment, but his profit is being reduced quickly after Thursday's decline.
United Airlines also announced on Thursday it will offer up to $10,000 to customers who will give up their seat on an overbooked flight. The airline industry is under increased scrutiny due to the bloody confrontation earlier this month, when an airline passenger was dragged off an overbooked flight.
"If overbooking were legislated out, if it was regulated away, revenue trends will initially go lower and ticket prices will have to be increased. That will come out of consumers' pockets," Baker added on CNBC.