“In a way, the churn has reflected health, because more sectors are participating in the moves,” said Ross Mayfield, investment strategy analyst at Baird.
While investors are optimistic that things will recover soon, there’s still a lot of economic pain to go around.
Airlines have been making gains this year as more people bet on a budding recovery for travel, but the industry still faces turbulence ahead. Discount carrier Frontier Airlines has so far underwhelmed on its first day of public trading. The Denver-based airline opened at $US18.61, below the low end of a $US19 to $US21 price target, and is trading at $US18.64.
The Labor Department said the number of Americans who filed for unemployment benefits last week rose to 719,000 last week from 658,000 the previous week. That figure was expected to decline. The government will release its monthly jobs report on Friday.
“The employment market is going to be the thing to watch,” Mayfield said. “We’re kind of in a transition period and at some point we’re going to need to see improvement there.”