The Dow was down 265 points, or 0.6%, after opening higher. The S&P 500 was down 0.5%. The Nasdaq Composite was down 0.5%. Very little was working on Wall Street. Treasury bond prices were also falling, while only 114 stocks in the S&P 500 were trading higher. The top S&P winners included firms that reported quarterly results, such as Pepsi and Delta Air Lines. The stock market stumbled at the open. Now it's starting to slide. ...

Core Insights - Delta Air Lines reported record revenue and exceeded earnings forecasts for Q3 2025, driven by strong demand in premium and corporate travel [1][4] - CEO Ed Bastian projected full-year adjusted EPS to reach about $6, indicating confidence in margin expansion and revenue growth [2] - For the first time, Delta anticipates that sales of premium seats will surpass traditional main cabin offerings by 2026, a year earlier than expected [3] Financial Performance - Delta's adjusted revenue for the three months ending September 30 was $15.2 billion, with adjusted EPS of $1.71, both surpassing Wall Street estimates [4] - Revenue from high-end seats rose by 9% to nearly $5.8 billion, while main cabin sales declined by 4% to around $6 billion, indicating a shift in consumer preferences [4] Market Trends - The surge in premium demand aligns with the concentration of wealth in the U.S., where the top 10% of households accounted for nearly 50% of consumer spending in Q2 2025 [5] - Delta's strategic focus on profitable flights and trimming off-peak routes contributed to its strong performance, with premium products now being the highest-margin offerings [5] Industry Outlook - Delta's strong results are seen as a bellwether for improving fundamentals in the U.S. airline industry, alleviating concerns about economic slowdown [5] - The airline sector experienced a broad gain, supported by confidence in resilient travel demand and Delta's effective execution [5]

Core Viewpoint - Boeing's stock experienced a decline due to uncertainty surrounding a significant commercial deal with Turkish Airlines, despite securing a military contract from the U.S. Air Force for over $173 million [1][5]. Group 1: Military Contracts - The U.S. Air Force awarded Boeing a contract exceeding $173 million for eight additional MH-139A Grey Wolf helicopters, which are designed to enhance national security missions [1][2]. - The helicopters are intended to guard intercontinental ballistic missile fields and offer improved speed, range, and payload capacity [2]. Group 2: Commercial Deal Uncertainty - Turkish Airlines' Chair, Ahmet Bolat, indicated that the airline might abandon its provisional agreement to purchase 150 Boeing 737 MAX jets if negotiations with engine supplier CFM International do not progress favorably [2][3]. - CFM International, a joint venture between GE Aerospace and Safran SA, is the sole engine provider for Boeing's narrow-body aircraft [3]. Group 3: Market Dynamics - Turkish Airlines is facing challenges with engine delays and is seeking more competitive pricing amid rising global demand and capacity strains [4][5]. - The airline has plans to expand its fleet to approximately 800 aircraft by 2033, which includes a separate order for over 200 Airbus jets in 2023 [3][4]. Group 4: Stock Performance - Boeing's stock has seen a significant increase of over 46% in the past year, although it was down 3.34% to $217.79 at the time of publication [5].

Core Viewpoint - Delta Air Lines reported stronger-than-expected third-quarter earnings, leading to a rise in stock price and an increase in full-year profit outlook, indicating continued momentum into the fourth quarter [1]. Financial Performance - Delta's adjusted EPS for the third quarter was $1.71, surpassing the FactSet consensus of $1.53 and Goldman Sachs' estimate of $1.45 [2]. - The earnings result was near the high end of Delta's initial guidance range of $1.25 to $1.75, confirmed in September [3]. - Unit revenue (RASM) increased by 0.3%, contrary to analysts' expectations of a 0.8% decline [3]. Future Outlook - For the fourth quarter, Delta expects EPS between $1.60 and $1.90, with the midpoint exceeding both the consensus estimate of $1.65 and Goldman Sachs' forecast of $1.49 [4]. - The airline anticipates top-line growth of 2% to 4% year-over-year, surpassing Goldman Sachs' projection of 1.1% [4]. - Delta raised its EPS guidance for fiscal 2025 to approximately $6.00, above the previous range of $5.25 to $6.25 and ahead of the consensus estimate of $5.80 [5]. Capacity and Revenue Growth - The latest schedule data indicates a 2% increase in fourth-quarter capacity, expected to drive RASM growth of up to 2%, a significant improvement from the 0.3% growth in the third quarter [5]. - Corporate revenue growth accelerated, with corporate sales rising 8% in the third quarter of 2025, compared to low-single-digit growth earlier in the year [6]. Analyst Insights - Goldman Sachs analyst Catherine O'Brien maintained a 12-month price forecast of $68.00 for Delta, implying a 19% upside from the current price of $57.12 [7].

Company Performance - Delta Air Lines Inc. reported better-than-expected adjusted EPS of $1.71 and operating revenue of $16.7 billion, reflecting a 6% year-over-year increase [2] - GAAP EPS for Delta was $2.17, marking a 10% rise from the previous year, surpassing the consensus estimate of $1.52 [2] Future Projections - Delta expects total revenue growth of 2% to 4% for the December quarter, with adjusted EPS projected between $1.60 and $1.90 [3] - The airline anticipates an operating margin between 10.5% and 12% [3] Market Movements - Turn Therapeutics Inc. shares surged 145% to $17.14 after commencing trading on the Nasdaq Capital Market [9] - Tilray Brands, Inc. shares increased by 29% to $2.2109 following better-than-expected first-quarter financial results [9] - Serve Robotics Inc. shares rose 26% to $17.38 due to a new partnership with DoorDash for autonomous robot deliveries [9] - Helen of Troy Limited shares dropped 21% to $21.90 after reporting second-quarter results and issuing FY26 adjusted EPS guidance below estimates [9] - Ferrari N.V. shares fell 13% to $417.00 after releasing its comprehensive 2030 strategic plan and updated near-term financial guidance [9] - Lucas GC Limited shares decreased by 30% to $0.1082 following a 40-for-1 share consolidation announcement [9]

Company Performance - Delta Air Lines Inc. reported better-than-expected adjusted EPS of $1.71 and operating revenue of $16.7 billion, reflecting a 6% year-over-year increase [2] - GAAP EPS for Delta was $2.17, marking a 10% rise from the previous year [2] - Delta anticipates total revenue growth of 2% to 4% for the December quarter, with adjusted EPS projected between $1.60 and $1.90 [3] Market Movements - Turn Therapeutics Inc. shares surged 145% to $17.14 after commencing trading on the Nasdaq Capital Market [9] - Tilray Brands, Inc. saw a 29% increase in shares to $2.2109 following better-than-expected first-quarter financial results [9] - Serve Robotics Inc. shares rose 26% to $17.38 due to a new partnership with DoorDash for autonomous robot deliveries [9] - Helen of Troy Limited shares dropped 21% to $21.90 after reporting second-quarter results and issuing FY26 adjusted EPS guidance below estimates [9] - Ferrari N.V. shares fell 13% to $417.00 after releasing its comprehensive 2030 strategic plan and updated near-term financial guidance [9] - Lucas GC Limited shares decreased by 30% to $0.1082 following a 40-for-1 share consolidation announcement [9] Commodity Prices - Oil prices decreased by 0.1% to $62.52, while gold fell by 0.7% to $4,041.90 [6] - Silver traded down 0.6% to $48.720, whereas copper rose by 1.7% to $5.1790 [6]

Core Insights - Delta Air Lines (DAL) reported Q3 2025 earnings of $1.71 per share, exceeding the Zacks Consensus Estimate of $1.52, with a year-over-year increase of 14% attributed to low fuel costs [1][10] - Revenues for the quarter reached $16.67 billion, surpassing the Zacks Consensus Estimate of $15.79 billion, marking a 6.4% year-over-year growth [2][10] Revenue Breakdown - Passenger revenues, which constituted 81% of total revenues, rose 3% year-over-year to $13.51 billion, slightly below the estimate of $13.55 billion [3] - Premium revenues increased by 9% year-over-year, with loyalty revenues also up by 9%, reflecting strong engagement from SkyMiles members [4] - Cargo revenues improved by 19% year-over-year to $233 million, exceeding the estimate of $203.4 million, while other revenues surged 24% to $2.9 billion, surpassing the estimate of $2.4 billion [4] Operational Metrics - Adjusted operating margin for Q3 2025 was 11.2%, up from 9.4% a year ago [5] - Revenue passenger miles increased by 2% to 67.2 billion, while capacity expanded by 4% to 79 billion [5] - Load factor decreased by 100 basis points to 86%, slightly below the estimate of 86.1% [5] Cost and Expenses - Total operating expenses rose by 5% to $15 billion, with salaries and related costs increasing by 5% to $4.4 billion due to higher wages from a new pilot contract [7] - Fuel gallons consumed increased by 4% to 1.114 billion, while the average fuel price per gallon fell by 11% to $2.25 [7] Cash Flow and Debt - At the end of Q3 2025, DAL had cash and cash equivalents of $3.8 billion, down from $3.97 billion a year earlier [8] - Adjusted net debt decreased by $2.4 billion to $15.6 billion, with adjusted operating cash flow of $1.8 billion [8] Future Guidance - DAL expects Q4 2025 adjusted earnings per share to be in the range of $1.6 to $1.9, with the Zacks Consensus Estimate at $1.52 [9][10] - Full-year earnings guidance is approximately $6 per share, above the Zacks Consensus Estimate of $5.67, with free cash flow expected to be between $3.5 billion and $4 billion [11]

Shares of the largest U.S. airline by market capitalization traded 4% higher by midday Thursday after it unveiled quarterly earnings. ...

Core Insights - Delta Air Lines reported a strong recovery in the third quarter with a revenue growth of 4.1% year over year, driven by premium offerings, corporate travel, and loyalty programs [3] - The airline achieved a record third quarter revenue of $15.2 billion and updated its full-year outlook to between $3.5 billion and $4 billion [4] Revenue Breakdown - Premium revenue increased by 9% year over year, while main cabin revenue decreased by 4% year over year [4] - Loyalty revenue also saw a growth of 9% year over year [4] Strategic Focus - Delta's strategy has shifted towards enhancing loyalty programs and premium offerings, which has shown resilience amid previous uncertainties [5] - The airline is expanding its premium seating through retrofits and new aircraft deliveries, increasing the mix of premium seats [5] Customer Retention - Delta's retention rates for premium product customers are in the mid-80% range, indicating strong customer loyalty [7] - The company emphasizes a relentless focus on improving customer experience, which is central to its industry leadership [7]

Core Insights - Delta Air Lines is experiencing a shift in customer preference towards first-class seating, with revenue from premium cabins expected to surpass that from standard coach seats in the near future [1][2] Revenue Performance - Ticket revenue from Delta's premium cabin increased by 9% year-over-year, reaching nearly $5.8 billion [1] - In contrast, main-cabin ticket revenue declined by 4% compared to the previous year, totaling just over $6 billion [1] Demand Trends - CEO Ed Bastian noted that there are no indications of a slowdown in premium-travel demand, which supports a positive outlook for Delta's financial performance for the remainder of 2025 and into the next year [2]