Stocks Mixed in Early Trading as Nasdaq Retreats from Record High; Airline Shares Soar After Strong Delta Earnings

Delta Leads Airline Stocks Higher After Strong Earnings Report

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Delta Air Lines (DAL) was the top-performing stock in the S&P 500 early Thursday after the carrier reported better second-quarter results than analysts had expected and reinstated its full-year outlook.

Delta posted adjusted earnings per share of $2.10 on revenue that was roughly flat year-over-year at $16.65 billion. Analysts polled by Visible Alpha had projected $2.08 and $16.41 billion, respectively. Last quarter, Delta said it expected revenue to be down 2% to up 2%, with adjusted EPS within a range of $1.70 to $2.30.

For the third quarter, the airline sees revenue between flat and up 4%, with adjusted EPS between $1.25 and $1.75. Analysts expect revenue roughly flat at $15.69 billion, with adjusted EPS of $1.36.

Delta also reintroduced its full-year projections, saying it expects adjusted EPS of $5.25 to $6.25, with the midpoint well above analysts’ consensus of $5.31. Last quarter, it said it would provide an update to its outlook once the “current uncertainty” passed.

“As we look to the second half of our centennial year, we remain focused on executing our strategic priorities and managing the levers within our control to deliver strong earnings and cash flow,” Delta CEO Ed Bastian said, adding that restoring its full-year guidance reflects “our confidence in the business.”

Delta shares were up roughly 13% recently, but they remain down about 6% since the start of the year. Shares of rivals United Airlines (UAL) and American Airlines (AAL) were also up sharply this morning.

–Aaron McDade

Microsoft Levels to Watch as Stock Above $500 for 1st Time

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Microsoft (MSFT) shares hit another record high on Wednesday as the tech giant’s market capitalization moves closer to $4 trillion. 

The stock closed at around $503 yesterday, putting its market cap at $3.74 trillion, trailing only Nvidia (NVDA), which briefly surpassed the $4 trillion level on Wednesday.

Investment bank Oppenheimer believes Microsoft has room for further upside, placing a $600 price target on the stock yesterday, in part due to the company’s AI revenue growth prospects. Meanwhile, Wedbush analyst Dan Ives told clients in a note Wednesday that he anticipates Microsoft to reach the $4 trillion mark this summer.

The stock has risen 46% from its early-April low and is nearly 20% higher year-to-date as of Wednesday’s close.

After bottoming near the 200-week moving average in early April, Microsoft shares have remained in a strong uptrend, gaining in 12 of the past 14 weeks.

While the relative strength index confirms bullish price momentum, it has recently crossed into overbought territory, an area on the indicator that has previously coincided with consolidation phases in the stock.

It’s worth noting that the volume has trended downward during the stock’s move higher in recent months, indicating that some larger institutional investors may be waiting for the tech giant’s next earnings report before deploying more capital.

Investors should watch crucial support levels on Microsoft’s chart near $468 and $425.

Read the full technical analysis piece here.

–Timothy Smith

Major Index Futures Holding Steady

1 hr 26 min ago

Futures tied to the Dow Jones Industrial Average were down 0.1%.

S&P 500 futures fell fractionally.

Nasdaq 100 futures were up less than 0.1%.