Travel Stocks Drop Despite Strong Profits

Wall Street edges back from year's big rally
By Newser Editors and Wire Services
Posted Aug 1, 2023 3:57 PM CDT
Travel Stocks Drop as Markets Back From Rally
A man walks past monitors showing Japan's Nikkei 225 index at a securities firm in Tokyo, Tuesday, Aug. 1, 2023. Asian shares mostly rose Tuesday.   (AP Photo/Hiro Komae)

Wall Street took a step back from its big rally so far this year, and most stocks fell Tuesday following a mixed set of earnings reports from US companies. The S&P 500 lost 12.23, or 0.3%, to 4,576.73, coming off its fifth straight winning month. The Nasdaq composite sank 62.11, or 0.4%, to 14,283.91. The Dow Jones Industrial Average squeezed out a gain of 71.15 points, or 0.2%, to 35,630.68 even though most of the stocks within it weakened. Travel-related stocks helped drag the market lower after they gave up some of their big gains from earlier in the year, the AP reports.

Norwegian Cruise Line lost 12.1% despite reporting stronger profit and revenue for the spring than expected. Expectations have been high for it and rivals after its stock soared 80% for the year through Monday. JetBlue Airways sank 8.3% to roughly halve its nearly 20% gain for the year through July, despite reporting better profit than expected for the latest quarter. It cut its forecast for results for the full year, partly because of the cancellation of a partnership with American Airlines.

Worries have been rising broadly about expectations building too high for the US stock market, which saw the S&P 500 surge 19% this year through July. Among other stocks that struggled with high expectations Tuesday was Molson Coors Beverage. It fell 4.7% after reporting weaker revenue for the spring than expected, even though its profit topped expectations. Among the winners on Wall Street Tuesday was Caterpillar. It rose 8.9% after blowing past analysts' forecasts for earnings during the spring. Arista Networks jumped 19.7% for the biggest gain in the S&P 500 after it also beat expectations for profit and revenue in the latest quarter. (More stock market stories.)

Get the news faster.
Tap to install our app.
X
Install the Newser News app
in two easy steps:
1. Tap in your navigation bar.
2. Tap to Add to Home Screen.

X