Airline stocks pull back, with American Airlines hurt by stock offering

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Shares of most air carriers pulled back Tuesday, with American Airlines Co. taking advantage of the previous session’s big run up with a public share offering. The U.S. Global Jets ETF dropped 1.1% in morning trading, after soaring 16.1% on Monday to close at a 5-month high as investors cheered a potential COVID-19 vaccine. American’s stock slumped 2.6%, as the company followed Monday’s 15.2% surge by looking to sell 38.5 million shares to the public. Elsewhere, shares of Hawaiian Airlines parent Hawaiian Holdings Inc. slid 5.7%. Deutsche Bank analyst Michael Linenberg downgraded Hawaiian to hold from buy citing valuation, following Monday’s 50.8% rally on the idea that Hawaiian had the most to gain from a return to normalcy. Among other air carriers, shares of United Airlines Holdings Inc. slipped 0.6%, Delta Air Lines Inc. gave up 1.1% and Spirit Airlines Inc. slipped 0.9%, while Southwest Airlines Co. gained 0.6% and JetBlue Airways Corp. tacked on 0.6%. Meanwhile, the S&P 500 eased 0.4% after rising 1.2% on Monday.
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