Airline Stocks Take Off As Oil Drops
This afternoon, most of the leading airline stocks are catching a bid higher as the price of crude declines. The current chart pattern on many of the popular airline stocks still signals further declines despite today's bounce. Should oil begin to decline further over the next few weeks that could help the airline sector, however, that is unlikely with the current problems in the Middle East. The Claymore/NYSE Arca Airline ETF (NYSEARCA:FAA) is trading higher by 0.12 cents to $28.98 a share. Until this ETF can trade above the $30.00 level it could be consolidating to trade lower soon.
Some leading airline stocks that are rallying higher this afternoon include Delta Air Lines Inc (NYSE:DAL), United Continental Holdings Inc (NYSE:UAL), and U.S. Airways Group Inc (NYSE:LCC). This sector will generally trade inverse to oil, therefore, oil prices should be watched closely. Today, light sweet crude finished lower by $2.48 to $105.61 a barrel.