Wall Street Slips, Delta Shines on Strong Forecast/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ Wall Street started Thursday slightly lower despite Delta Air Lines surging on a strong outlook. Delta’s upbeat forecast boosted the airline sector, while jobless claims declined, signaling a healthy labor market. Global markets traded mixed as investors eyed Trump’s trade negotiations and broader economic signals.
Quick Look: Wall Street and Delta Update
- Market Moves: S&P 500 slips 0.1%, Dow gains slightly, Nasdaq down 0.4%.
- Delta Surge: Delta jumps 12% on strong forecast, lifting airline stocks.
- Economic Data: Jobless claims fall, signaling ongoing labor market strength.
Wall Street Slips as Delta Soars on Optimistic Forecast, Jobless Claims Decline
Deep Look
NEW YORK (AP) — Wall Street got off to a sluggish start Thursday, as major indexes slipped slightly even while Delta Air Lines lifted airline stocks skyward with a robust financial outlook and new data showed fewer Americans filed for jobless benefits.
The S&P 500 edged down 0.1%, keeping it near last week’s record highs fueled by June’s strong jobs report. Meanwhile, the Dow Jones Industrial Average was up 55 points, or 0.1%, as of 10:03 a.m. Eastern time. The Nasdaq composite dipped 0.4% after hitting an all-time high the day before.
Bond yields mostly rose, with the 10-year Treasury yield climbing to 4.36% from 4.34% late Wednesday.
Delta Air Lines soared 12% after beating Wall Street’s estimates for revenue and profits and forecasting a stronger summer travel season than anticipated just months ago. Its upbeat forecast lifted the entire airline sector: United Airlines jumped 10.1%, American Airlines climbed 7.9%, and JetBlue rose 4.8%.
Earlier this year, Delta and other major U.S. carriers trimmed their financial forecasts amid uncertainty over President Donald Trump’s tariff policies, which had rattled consumers and dampened travel spending.
Kellogg Deal, Economic Data Add to Market Moves
Shares of WK Kellogg surged more than 30% after Italian confectioner Ferrero announced it would acquire the cereal company for approximately $3.1 billion. The deal covers manufacturing, marketing, and distributing WK Kellogg’s breakfast cereals across the U.S., Canada, and the Caribbean.
Meanwhile, the U.S. Labor Department reported a decline in unemployment benefit applications last week, a sign that layoffs remain historically low and the job market continues to show resilience.
Investors are keeping a close eye on the evolving landscape of Trump’s global trade strategy. The president’s threats of new tariffs aim to pressure trading partners into agreements, but with just two deals finalized since April—one with the United Kingdom and another with Vietnam—the White House extended the negotiation window to August 1.
Global Markets Mixed
European stocks were mostly higher Thursday, while Asia’s performance was mixed. Japan’s Nikkei 225 fell 0.4% as exporters’ shares declined, impacted by a strengthening yen that threatens profit margins and concerns over stalled Japan-U.S. trade discussions.
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