Mnuchin told CNBC that he's confident President Donald Trump and President Xi Jinping can make progress in stalled trade talks.World Economyread more
U.S. stock index futures jumped Wednesday morning after Treasury Secretary Steven Mnuchin told CNBC that the U.S. and China were almost there on a trade deal.US Marketsread more
President Donald Trump's administration hopes additional sanctions on Iran will force the country to negotiate.Politicsread more
Democrats want Mueller's testimony on his probe into Russian interference in the 2016 election and Trump's efforts to influence it.Politicsread more
Stocks should rally if the U.S. and China agree to new negotiations and a ceasefire in the trade war, but the economic impact of tariffs will continue.Market Insiderread more
Bitcoin surged as high as $12,919 in early morning trade Wednesday, to its highest level since January 2018.Technologyread more
The trade war between Beijing and Washington appears to have depressed Chinese property purchases in the United States. China's own actions may also be playing a role.Real Estateread more
Tesla CEO Elon Musk sent out another email to his employees, pushing them to aim for a record number of vehicle deliveries to end the second quarter of 2019.Technologyread more
More than 300 companies are talking to government officials in Washington about how detrimental the trade war is.Marketsread more
The Senate is expected to pass its own version of the border aid legislation, while the Trump administration has threatened to veto both bills.Politicsread more
Some 4 million people have fled the South American country since 2015 amid an economic meltdown.World Politicsread more
Tax reform should boost business travel this year, according to Bank of America Merrill Lynch, and that in turn will boost shares of the country's biggest airlines, including American Airlines, United Continental and Delta, the investment bank said.
"We view tax reform as a significant positive for corporate spending (banks, media companies and even airlines have given $1,000 one-time bonuses to employees), and we believe this can drive a pickup in corporate travel pricing," wrote analyst Andrew Didora. "Since 2014, we estimate corporate pricing is down 14 percent. ... This coupled with strong international fundamentals should create a solid backdrop for the legacy airlines that are more levered to corporate travel than domestic, leisure-oriented airlines."
The analyst changed his tune on American Airlines, upgrading the company to buy from underperform, and reiterated his buy ratings on Delta and United. American and United traded higher Tuesday following the bullish call. Delta initially rose but then headed into negative territory.
Given that those airlines generate roughly two-thirds of their revenue from business travel, any recovery in corporate pricing as a result of the Republican tax plan should disproportionately benefit those companies, Didora said.
All three underperformed the S&P 500 in 2017, though United disappointed the most, plagued with public relations problems throughout the year. Some extra cash as a result of revived corporate travel could be the key for improving equity prices.
"In a scenario in which corporate prices returned to the same levels as four years ago, corporate revenues could grow 15 percent, driving a strong fundamental backdrop for the industry and an even better outlook," added Didora.
The new tax law includes a corporate tax rate of 21 percent, down from 35 percent in an effort to make the U.S. more competitive globally. The law is expected to free up cash in a slew of industries, including industrials and financials.
Though more bullish on some names, the analyst did issue some downgrades as well. Cutting his rating on Southwest and Alaska to neutral from buy and downgrading JetBlue to underperform from buy, Didora noted that domestic travel could suffer at the hands of international and business trips.
"We believe Southwest is the highest quality airline in the group with a very conservative balance sheet and low earnings volatility," he said. "However, we expect business travel and international markets to outperform Southwest's largely domestic-oriented system in 2018."
The same assessment applied to Alaska, which Didora called "an exceptionally well-run airline" despite its focus on domestic travel.
Shares of Alaska and Southwest fell Tuesday, down 0.5 percent and 1 percent respectively. JetBlue was up slightly.
— CNBC's Michael Bloom contributed to this report.