Finally, a little bit of good news -- from Intel , trading up 7 percent after the close. (IBM reports tomorrow.)
Why no rally from the airlines, despite the Delta -Northwest merger? Traders, to a man, pointed to oil: Jet fuel has now passed labor as the No. 1 expense for airlines.
In the last three weeks, five U.S. carriers declared bankruptcy: Skybus, Aloha, ATA Airlines, Champion Air and the latest, Frontier Air. They declared bankruptcy because they cannot make money selling seats at the current prices with oil at a record.
Morgan Stanley's airline analyst, Willliam Greene, had to say to his clients this morning: "Our rule of thumb is to look for opportunities to become sellers once consolidation momentum has run its course, because airline mergers are inherently risky."
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