Market Snapshot
briefing.com
| Dow | 34961.09 | +385.56 | (1.12%) | | Nasdaq | 13946.66 | +133.07 | (0.96%) | | SP 500 | 4509.78 | +42.34 | (0.95%) | | 10-yr Note | -3/32 | 4.29 |
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| | NYSE | Adv 2241 | Dec 624 | Vol 918 mln | | Nasdaq | Adv 2890 | Dec 1420 | Vol 4.7 bln |
Industry Watch
| Strong: Energy, Real Estate, Utilities, Materials, Industrials |
| | Weak: -- |
Moving the Market
-- Economic relief trade in the mix following some central bank news and economic data this morning
-- Positive buzz around the ARM IPO
-- Rising oil prices remain in focus
-- S&P 500 climbing past its 50-day moving average (4,481) and the 4,500 level; the Nasdaq also climbing past its 50-day moving average
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Closing Summary
14-Sep-23 16:25 ET
Dow +331.58 at 34907.11, Nasdaq +112.47 at 13926.06, S&P +37.66 at 4505.10
[BRIEFING.COM] Stocks had a strong showing today after a quiet start to the week in terms of market-moving events. The major indices all closed near their best levels of the session with decent gains. The S&P 500, which closed above 4,500, and the Nasdaq Composite climbed past their 50-day moving averages.
Gains were fairly broad in nature. 28 of the 30 Dow components logged a gain and all 11 S&P 500 sectors were positive. The real estate sector (+1.7%) saw the biggest gain. Energy (+1.3%) was another top performer, climbing alongside oil prices ($90.26/bbl, +1.69, +1.9%). The health care (+0.3%) and information technology (+0.7%) sectors closed at the bottom of the lineup.
Today's positive bias was driven by a couple of factors. There was a speculative buzz in the air surrounding the Arm Holdings (ARM 63.59, +12.59, +24.7%) IPO, which opened for trading at $56.10. There was also some central bank news and economic data that comported with a more hopeful economic outlook.
Specifically:
- The ECB raised its three, key interest rates by another 25 basis points, but hinted that it might be done raising rates, thereby opening the door to claims that today's move was a "dovish hike."
- The PBOC said the required reserve ratio will be cut by 25 basis points, effective September 15, for all banks that don't currently have a 5% reserve ratio.
- August retail sales (+0.6%) were stronger than expected.
- The August PPI report produced an in-line core reading and some palatable year-over-year increases of 1.6% for total PPI and 2.2% for core-PPI, respectively.
- Initial jobless claims for the week ending September 9 were just 220,000, which is a level associated with a tight labor market that is supportive of continued consumer spending.
The relatively calm response to the data from Treasuries was another factor supporting stocks. The 2-yr note yield rose two basis points to 5.01% and the 10-yr note yield rose four basis points to 4.29%.
Separately, Delta Air Lines (DAL 39.33, -0.22, -0.6%) was the latest airline to warn for Q3 due in part to rising fuel costs and was a notable laggard on a day that saw most stocks trade higher. Advancers led decliners by a better than 3-to-1 margin at the NYSE and by a 2-to-1 margin at the Nasdaq.
- Nasdaq Composite: +33.1% YTD
- S&P 500: +17.3% YTD
- S&P Midcap 400: +6.8% YTD
- Russell 2000: +6.0% YTD
- Dow Jones Industrial Average: +5.3% YTD
Reviewing today's economic data:
- Weekly Initial Claims 220K (Briefing.com consensus 226K); Prior was revised to 217K from 216K; Weekly Continuing Claims 1.688 mln; Prior was revised to 1.684 mln from 1.679 mln
- The key takeaway from the report is the same: the low level of initial claims -- a leading indicator -- is reflective of a fairly tight labor market, which is the basis for why consumer spending continues to hold up in the face of inflation pressures and rising rates.
- August PPI 0.7% (Briefing.com consensus 0.4%); Prior 0.3%; August Core PPI 0.2% (Briefing.com consensus 0.2%); Prior was revised to 0.4% from 0.3%
- The key takeaway from the report is that 80% of the rise in final demand prices was attributed to a 2.0% jump in the index for final demand goods, which was driven by a 10.5% increase in prices fir final demand energy. That understanding softens the blow of the headline surprise for the index for final demand; however, until energy prices back down, concerns about rising inflation expectations and the Fed holding higher for longer will persist.
- August Retail Sales 0.6% (Briefing.com consensus 0.2%); Prior was revised to 0.5% from 0.7%; August Retail Sales ex-auto 0.6% (Briefing.com consensus 0.4%); Prior was revised to 0.7% from 1.0%
- The key takeaway from the report is that gasoline station sales (+5.2%) had a big impact on the overall increase in retail sales. Excluding gasoline stations, retail sales were up a more modest 0.2%, which is suggestive of a consumer that is softening but not breaking.
- July Business Inventories 0.0% (Briefing.com consensus 0.1%); Prior was revised to -0.1% from 0.0%
Friday's calendar features the following data:
- 8:30 ET: August Import Prices (prior 0.4%), Import Prices ex-oil (prior 0.0%), Export Prices (prior 0.7%), Export Prices ex-agriculture (prior 0.6%), and September Empire State Manufacturing survey (Briefing.com consensus -10.0; prior -19.0)
- 9:15 ET: August Industrial Production (Briefing.com consensus 0.2%; prior 1.0%) and Capacity Utilization (Briefing.com consensus 79.3%; prior 79.3%)
- 10:00 ET: Preliminary September University of Michigan Consumer Sentiment (Briefing.com consensus 69.4; prior 69.5)
Market hangs near highs ahead of the close
14-Sep-23 15:30 ET
Dow +334.56 at 34910.09, Nasdaq +108.30 at 13921.89, S&P +935.30 at 5402.74
[BRIEFING.COM] The market remains near the highs of the day. Gains for the major indices range from 0.8% to 1.4%.
Treasuries settled with losses. The 2-yr note yield rose two basis points to 5.01% and the 10-yr note yield rose four basis points to 4.29%.
The U.S. Dollar Index rose 0.6% to 105.41.
Friday's calendar features the following data:
- 8:30 ET: August Import Prices (prior 0.4%), Import Prices ex-oil (prior 0.0%), Export Prices (prior 0.7%), Export Prices ex-agriculture (prior 0.6%), and September Empire State Manufacturing survey (Briefing.com consensus -10.0; prior -19.0)
- 9:15 ET: August Industrial Production (Briefing.com consensus 0.2%; prior 1.0%) and Capacity Utilization (Briefing.com consensus 79.3%; prior 79.3%)
- 10:00 ET: Preliminary September University of Michigan Consumer Sentiment (Briefing.com consensus 69.4; prior 69.5)
Energy outperforms amid rising oil prices
14-Sep-23 15:05 ET
Dow +385.56 at 34961.09, Nasdaq +133.07 at 13946.66, S&P +42.34 at 4509.78
[BRIEFING.COM] The major indices moved somewhat higher over the last half hour.
Energy complex futures settled higher. WTI crude oil futures rose 1.9% to $90.26/bbl and natural gas futures rose 1.3% to $2.72mmbtu.
On a related note, the S&P 500 energy sector (+1.3%) remains near the top of the pack alongside real estate (+1.8%) and materials (+1.5%).
S&P 500 in familiar second place; Norwegian Cruise Line leads after sell side upgrade
14-Sep-23 14:30 ET
Dow +321.43 at 34896.96, Nasdaq +103.70 at 13917.29, S&P +34.41 at 4501.85
[BRIEFING.COM] The S&P 500 (+0.77%) is now in second place among the major averages, moving largely sideways over the previous half hour.
S&P 500 constituents Norwegian Cruise Line (NCLH 17.25, +0.90, +5.50%), MarketAxess (MKTX 229.91, +9.45, +4.29%), and Mosaic (MOS 38.73, +1.54, +4.14%) are today's top gain getters. Redburn upgraded NCLH to Buy this morning, while MKTX and MOS display strength despite a dearth of corporate news.
Meanwhile, Netflix (NFLX 402.53, -9.71, -2.36%) is one of today's worst performing constituents as investors parse yesterday's comments from CFO Neumann about the company's skew toward more ad-free accounts as a result of the recent password-sharing crackdown instead of ad-supported.
Gold glides higher on Thursday
14-Sep-23 14:00 ET
Dow +327.34 at 34902.87, Nasdaq +116.12 at 13929.71, S&P +36.41 at 4503.85
[BRIEFING.COM] The tech-heavy Nasdaq Composite (+0.84%) is in second place on Thursday afternoon, hovering just off session highs.
Gold futures settled less than $1 higher (flat) to $1,932.80/oz, rebounding solidly off morning lows of -0.6%, even as the dollar and yields have firmed up during the day.
Meanwhile, the U.S. Dollar Index is up about +0.5% to $105.27.
Page One
Last Updated: 14-Sep-23 09:05 ET | Archive
Stage set for intermarket trading excitement
There haven't been many days of late filled with trading excitement based on the news. This day should be an exception given that there is a host of news with market-moving potential.
That would include:
- The ECB's decision to raise its three key interest rates by 25 basis points, but dangling the possibility that it is done raising rates.
- The People's Bank of China announcing a 25 basis points cut in the required reserve ratio, effective September 15, for all banks that have not implemented a 5% reserve ratio.
- ARM Holdings (ARM) pricing its IPO at $51, the top end of the $47-51 expected price range.
- Reports that the UAW and automakers remain far apart in their negotiations, setting the stage for a potential strike action.
- Delta Air Lines (DAL) reaffirming its full-year guidance but following suit with other airlines yesterday in lowering its Q3 guidance.
- Oil prices ($89.89, +1.37, +1.6%) pushing $90.00 per barrel.
- The release of the August Producer Price Index, August Retail Sales, and Weekly Initial Jobless and Continuing Jobless Claims reports.
Currently, the S&P 500 futures are up 22 points and are trading 0.5% above fair value, the Nasdaq 100 futures are up 62 points and are trading 0.4% above fair value, and the Dow Jones Industrial Average futures are up 155 points and are trading 0.5% above fair value.
The 2-yr note yield, which bumped up to 5.02% after the data, is back to 4.97%, down two basis points from yesterday's settlement. The 10-yr note yield, which hit 4.30% after the data, is at 4.25%, unchanged from yesterday's settlement. The U.S. Dollar Index is up 0.3% to 105.08.
The disposition of the equity futures market implies that today's open should have a positive slant, but after that is when the real trading excitement should unfold as market participants take stock of the movement in interest rates, oil prices, the dollar, and stock prices themselves.
In other words, we expect today's trading to have some intermarket relationship flair knowing that so much of today's news is tied into economic activity and central bank policy decisions.
Looking at today's data:
- The August Producer Price Index for final demand increased 0.7% month-over-month (Briefing.com consensus 0.4%) following a 0.3% increase in July. The index for final demand, excluding food and energy, increased 0.2% month-over-month, as expected. On a year-over-year basis, the index for final demand was up 1.6% and the index for final demand, excluding food and energy, was up 2.2%.
- The key takeaway from the report is that 80% of the rise in final demand prices was attributed to a 2.0% jump in the index for final demand goods, which was driven by a 10.5% increase in prices fir final demand energy. That understanding softens the blow of the headline surprise for the index for final demand; however, until energy prices back down, concerns about rising inflation expectations and the Fed holding higher for longer will persist.
- August retail sales increased 0.6% month-over-month (Briefing.com consensus 0.2%) following a downwardly revised 0.5% increase (from 0.7%) in July. Excluding autos, retail sales rose 0.6% month-over-month (Briefing.com consensus 0.4%) following a downwardly revised 0.7% increase (from 1.0%) in July.
- The key takeaway from the report is that gasoline station sales (+5.2%) had a big impact on the overall increase in retail sales. Excluding gasoline stations, retail sales were up a more modest 0.2%, which is suggestive of a consumer that is softening but not breaking.
- Initial jobless claims for the week ending September 9 increased by 3,000 to 220,000 (Briefing.com consensus 226,000) while continuing jobless claims for the week ending September 2 increased by 4,000 to 1.688 million.
- The key takeaway from the report is the same: the low level of initial claims -- a leading indicator -- is reflective of a fairly tight labor market, which is the basis for why consumer spending continues to hold up in the face of inflation pressures and rising rates.
-- Patrick J. O'Hare, Briefing.com
Etsy amid a relief rally following an upgrade at Wolfe Research today (ETSY)
Following an upgrade to "Outperform" from "Peer Perform" today at Wolfe Research, shares of Etsy (ETSY +3%) are amid a minor relief rally. Today's upgrade follows multiple analysts either downgrading or reiterating their ratings on the e-commerce retailer known for handmade items. The last upgrade, per analysts Briefing.com tracks, was in April, shortly before ETSY's Q1 earnings report.
Briefing.com notes that the stock has been quite the laggard this year, stumbling by over 40% even after incorporating today's move, considerably underperforming its close rival eBay (EBAY). Part of why ETSY has faced adversity this year is its differentiating factor. Homemade and vintage crafts can be categorized as highly discretionary and tend to command relatively premium price points, which are not appealing attributes given the current economic climate. ETSY has conceded over multiple quarters running that it has faced stiff headwinds in consumer discretionary spending.
Nevertheless, share prices are becoming increasingly too attractive to ignore, especially after ETSY's rather upbeat Q2 report last month.
- Gross merchandise sales (GMS) may have stayed nearly flat yr/yr in Q2 at $3.01 bln. However, this does not paint the complete picture, as the metric enjoyed positive growth every month after April, including July (the first part of Q3), reflecting a favorable shift in demand and potential stabilization. Furthermore, GMS per active buyer maintained nearly all of ETSY's pandemic gains, expanding 28% since 2Q19.
- ETSY is working to reignite GMS growth during 2H23, making "big moves" during the holiday season to capitalize on an upcoming shopping season that may see fewer big-ticket items and instead relatively lower-priced specialized items, like those found on Etsy.
- At the same time, quarterly active buyers reached all-time highs during Q2 at 91 mln. Furthermore, new buyers totaled 6.0 mln, 40% higher than the average number of new buyers acquired quarterly during pre-pandemic periods. Also, the negative 6% yr/yr new buyer trends from Q1 improved to just 3% in Q2.
- Margins have been relatively sound during the challenging economic environment. In Q2, adjusted EBITDA margins did slide 140 bps yr/yr and 20 bps sequentially to 26.4%. However, management expects improvement going forward, projecting 27-28% margins in Q3, translating to flat yr/yr growth at the high end of its range.
- ETSY also anticipates a yr/yr and sequential improvement in GMS in Q3 at the midpoint of its $2.95-3.10 bln outlook.
ETSY's return to accelerated growth depends on the macro environment faring better than it has from here, keeping the risk of further share declines alive. That said, ETSY's Q2 performance indicates that the consumer is slowly returning to previous spending habits. Looking further out, ETSY boasts plenty of opportunities to expand its active buyer base in the U.S. and abroad as it attracts new buyers and reactivates its pool of 100 mln lapsed buyers.
Automakers and UAW seem pretty far apart on contract; work stoppage possible as deadline nears (GM)
Shares of US automakers (GM, F, STLA) are trading lower today, but they could be at risk of a larger pullback in the coming weeks if a labor deal with the United Auto Workers cannot be worked out soon. UAW President Shawn Fain held a Facebook Live session last night. It sounds like the parties are still far apart on labor negotiations.
- Mr. Fain argued that what is driving members' expectations is the Big Three's profits. He says they cannot make $21 bln in profits in half a year and expect members to take a mediocre contract. They cannot make a quarter trillion dollars in North American profits over the last decade and expect labor to keep aiming low and settling lower. Its campaign slogan is simple: record profits mean record contracts.
- According to Reuters, the UAW's plan is for a series of strikes targeting individual US auto plants in what would be its first-ever simultaneous strike against the Detroit Three automakers if agreements are not reached by late Thursday. Fain said the Detroit Three automakers had offered pay raises of as much as 20% over four and a half years but he called the hikes inadequate. That is less than half of the 40% pay hikes the union has sought.
- The UAW is planning a rally in Detroit tomorrow that will include Fain and some members of Congress, including Senator Bernie Sanders and others that would coincide with a first of day of walkouts. GM announced this morning that it continues to bargain directly and has presented what it calls "additional strong offers." GM's goal is to reach a deal before the current contract expires.
Briefing.com was surprised earlier this week when we read the UAW rejected 20% raises outright. With the unions wanting 40% raises, that is a pretty big divide. Between that and the generally harsh/angry comments from Fain on the Facebook Live call makes us think a labor stoppage appears likely. It should make for an interesting next few weeks.
It's not just the automakers, a lingering strike would also be bad news for the supply chain. Cleveland-Cliffs (CLF) is by far the largest supplier of steel to the automakers. Others to watch include: MT, NUE, STLD, X. Auto component stocks to watch include: AXL, BWA, DAN, ETN, GNTX, JCI, LFUS, MGA, TEN, VC.
Finally, the share prices of the automakers have held up fairly well, although GM and Ford have been soft in recent weeks, which was likely earnings and labor related. We suspect investors are not too worried and are probably thinking a deal will get worked out soon. However, we are a bit more skeptical. If a deal does not materialize, this will likely push the stocks lower until a deal can get worked out. This will likely be a cloud over these stocks in the near term at least.
Arm Holdings banking on strong performance in open market after turning down higher IPO price (ARM)
All signs pointed to a strong pricing for chip designer Arm Holdings' (ARM) IPO and that indeed came to fruition as its 95.5 mln share IPO priced at $51, the high end of a $47-$51 expected price range. In fact, according to multiple reports, ARM's IPO could have priced even higher. There was enough demand for the deal to at least price at $52 per share, but SoftBank's (SFTBY) executives opted to take a conservative approach and settled on $51 per share. With total gross proceeds of nearly $4.9 bln, ARM is still the largest IPO of the year even though SFTBY left some money on the table.
- It may seem surprising that SFTBY -- which is the only seller in the IPO -- would choose to turn down about $950 mln more in capital, but the decision is sensible when stepping back and taking a broader view. Essentially, SFTBY reasoned that it's not worth the risk to price the IPO more aggressively, which could negatively impact how the stock performs when it opens for trading.
- By suppressing the IPO price, there is a greater chance that ARM will open for trading with a significant opening gain. That's especially the case since the IPO was oversubscribed by 12x. In theory, many of those investors who did not receive an IPO allocation will be looking to scoop up shares on the open market, potentially fueling a sizable opening pop.
- There's a lot of pressure on ARM's IPO to perform well and opting for a lower pricing improves the odds of success. Next week, Instacart (CART) and Klaviyo (KVYO) are scheduled to go public and a rough debut from ARM could throw a major wrench in the hopes for those two highly anticipated deals. On the other hand, a strong performance from ARM could be viewed as a green light not only to pour some capital into CART's and KVYO's deals, but it could also entice many more companies to move forward with their own IPO plans.
- In a more favorable market climate, SFTBY likely would have taken the highest possible price for its IPO. Slowing consumer spending trends and rising macroeconomic concerns in China are two concerns that are hanging over the broader market and ARM in particular. Pushing ARM's valuation even higher would only make investors feel more skittish about the risk profile.
- ARM's recent financials are a mixed bag. For the fiscal year ended March 31, 2023, revenue slid lower by about 1% yr/yr to $2.68 bln as softness in the global smartphone market and a weakening Chinese economy weighed. On the positive side, the company generates robust margins and profits, thanks to its licensing business model. For this same period, gross margin and operating margin were 96% and 25%, respectively, while it posted a profit of $657 mln.
The main takeaway is that demand was predictably strong for ARM's IPO and SFTBY's decision to accept a lower IPO price could work in its favor over the long run. The stock is still very rich, though, with a P/S of about 20x. ARM's expanding AI capabilities represent its next growth catalyst, but rising macroeconomic headwinds -- especially in China -- are a threat to the company's growth prospects.
Yum China looking more appetizing after outlining its three-year financial targets today (YUMC)
Yum China (YUMC +5%), which operates approximately 13,000 KFC, Pizza Hut, and other restaurant banners in China, gapped higher today after outlining a new strategic initiative dubbed "RGM 2.0." With economic recovery efforts stalling in China, YUMC has seen its shares drop roughly 17% from 2023 highs and 5% on the year. Although it is unclear precisely when economic conditions will turn around in the region, management has been consistently confident in the company's positioning to capture outsized opportunities once normalization reemerges. Today's financial goals reinforce this confidence and underscore a favorable demand shift in China.
- RGM 2.0, an updated version of YUMC's original RGM plan (resilience, growth, and moat), targets several ambitious goals over the next three years. YUMC strives to expand its store footprint by over 7,000 by 2026, hit high-single to double-digit annualized growth for system sales and operating profit, and achieve a double-digit EPS CAGR from 2024 to 2026, setting 2023 as the base year. It should be noted that YUMC is modeling its forecasts using constant currency. YUMC also plans to return around $3.0 bln to shareholders through dividends and buybacks.
- YUMC dove into the weeds surrounding how it would unlock meaningful upside from its quick-service chains. KFC, the company's most prominent banner, boasting 10,000 locations across China, is staring at over a thousand additional cities with untapped potential for expansion. Pizza Hut, which surpassed the 3,000 restaurant mark this year, will begin growing its flexible store formats (smaller sizes) while expanding its off-premise sales potential and menu selection.
- Despite being a restaurant chain, AI was also a central component of YUMC's RGM 2.0 plan, as the technology can play a vital role in supporting the company's digital infrastructure by streamlining workflows and increasing store management flexibility. In fact, YUMC has been employing AI in some form for years, attributing an 80% uptick in store growth since 2016 despite a relatively flat headcount.
YUMC's ambitious financial goals would not be attainable without help from the general economy. Fortunately, YUMC is observing a stable recovery trajectory, albeit with near-term headwinds. Management anticipates same-store sales to remain on a path to recovery throughout the year, maintaining a pace of around 90% of 2019 levels. Competing restaurant chains in the region have offered similar bullish remarks, including Starbucks (SBUX), which stated last month that there is considerable long-term potential in the country, bolstering its confidence to invest in store growth, and McDonald's (MCD), which observed a steady recovery in China.
Bottom line, YUMC's RGM 2.0 strategy underpins encouraging developments in China. There are always regulatory concerns surrounding the Chinese government, adding the risk of another round of COVID-related restrictions. A deterioration in U.S./China relations could also affect the American brands operating in the region. Still, given YUMC's economic moat, its resilience throughout the pandemic, and a recovering demand backdrop, investors may need to increase their appetite for the company as medium-term conditions become more favorable.
American Airlines, Spirit Airlines, and Frontier next up to cut outlooks as demand slows (AAL)
One week after United Airlines (UAL), Southwest Airlines (LUV), and Alaska Air (ALK) warned that rising fuel costs are creating a headwind, another set of airlines raised the alarm on higher fuel prices this morning. Specifically, American Airlines (AAL), Spirit Airlines (SAVE), and Frontier Group (ULCC) joined that list, but there's another more concerning issue that's developing in the industry. After two plus years of strengthening travel demand, evidence is emerging that momentum is beginning to fade as consumers pull back on spending.
- The first indication came last week when LUV cut its revenue per available seat mile (RASM) guidance lower, forecasting RASM to decline by 5-7% compared to its prior outlook of a drop of 3-7%. While LUV also stated that it still expects to achieve record operating revenue in Q3, the RASM guidance cut and increased fuel cost outlook took center stage, as reflected in the stock's 5% drop since its update.
- Those concerns of softening travel demand were amplified this morning when AAL, SAVE and ULCC lowered their Q3 outlooks. SAVE and ULCC in particular painted a troubling picture, with ULCC commenting that its updated guidance reflects a "recent significant change in booking trajectory along with higher fuel prices and a greater volume of recent operational cancellations than forecast."
- Meanwhile, SAVE said that it's seeing heightened promotional activity with steep discounting for travel booked for the second half of Q3 through the pre-Thanksgiving travel period.
- All three airlines significantly reduced their profitability expectations for Q3 with AAL slashing its EPS guidance to $0.20-$0.30 from $0.85-$0.95.
- However, there is an important distinction to be made between AAL and the budget carriers of ULCC and SAVE: namely, demand seems to be holding up better for AAL. The airline essentially reaffirmed its Q3 total revenue outlook and only slightly lowered the midpoint of its TRASM guidance by 0.5 points to -6.0%.
- AAL's stronger resilience to the spending slowdown is a function of a higher percentage of bookings coming from corporate and international travel, and a more affluent customer base, relative to SAVE and ULCC.
- Instead of a steeper decline in bookings, AAL's earnings guidance was mainly impacted by a retroactive pay expense of about $230 mln resulting from the ratification of a new collective bargaining agreement with its pilots. This item impacted its EPS outlook by $0.23 with the remainder of the cut related to higher fuel costs.
The clear skies that airlines have been enjoying are starting to gather some storm clouds. Rising fuel costs are problematic, but signs that travel demand is starting to crack is a more pressing concern. So far, the major airlines (UAL, DAL, AAL, LUV) haven't experienced a significant downturn in bookings activity. However, the fear is that the more pronounced weakness seen at the low-cost carriers is a harbinger of things to come for the industry as a whole.
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