Why Investors Grounded Southwest Airlines Stock in April
Southwest Airlines (NYSE: LUV) operates in an industry that's very exposed to a potential economic downturn.As if to hammer home that point, in April while announcing its quarterly results the company withdrew a crucial guidance item. This made investors already skittish about the stock even more nervous, and they sold out of the carrier aggressively. Across that month, Southwest's stock price dived by nearly 17%.The overarching worry shared by many market players, not to mention economists, is that the Trump administration's trade war will land the country in a recession.Continue reading
Southwest Airlines (NYSE: LUV) operates in an industry that's very exposed to a potential economic downturn.
As if to hammer home that point, in April while announcing its quarterly results the company withdrew a crucial guidance item. This made investors already skittish about the stock even more nervous, and they sold out of the carrier aggressively. Across that month, Southwest's stock price dived by nearly 17%.
The overarching worry shared by many market players, not to mention economists, is that the Trump administration's trade war will land the country in a recession.
