US stocks open lower as airline shares tumble | Fin24
  • Covid-19 Money Hub

    The hub will help answer your business and money questions during the coronavirus crisis.

  • Dudu Myeni

    The former SAA chair has been declared a delinquent director for her role at the national airline.

  • Cigarette Ban

    Govt says emerging research shows smoking leads to more severe cases of Covid-19.


US stocks open lower as airline shares tumble

May 04 2020 16:45

Wall Street stocks tumbled in early trading Monday, with airline shares taking a major hit after Warren Buffett said he liquidated his holdings in major US carriers.

About 15 minutes into trading, the Dow Jones Industrial Average stood at 23 383.10, down 1.4%.

The broad-based S&P 500 dropped 1.0 percent to 2 801.24, while the tech-rich Nasdaq Composite Index shed 0.6 percent to 8 558.01.

Buffett said over the weekend he had sold large equity stakes American Airlines, Delta Air Lines, Southwest Airlines and United Airlines, commenting, "The airlines business, I think, changed in a very major way."

Shares of the four companies were down between 6 and 10%.

The move added to worries of a slow US economic rebound following coronavirus shutdowns that have devastated tourism and several other sectors.

Analysts said investor sentiment has also been pressured by revived US-China trade worries amid a squabble over the origins of the coronavirus.

This week's economic calendar includes the closely-watched April jobs report, as well as earnings reports from General Motors, Disney and others.

us  |  airlines  |  aviation  |  stocks


Company Snapshot

Voting Booth

How has Covid-19 impacted your financial position?

Previous results · Suggest a vote