Pre-market stocks: Travel stocks are rising as the U.S. reopens to tourists

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What’s happening: Shares of airlines have rebounded this month in anticipation of easing restrictions, which investors hope will cause an increase in bookings for people who are not allowed to travel during about 20 months.

Actions of American Airlines (AAL) i Delta Air Lines (DE) have increased 14% and 13% in November, respectively, compared to a 2% increase in the S&P 500. European airlines such as the owner of British Airways IAG (ICAGY) i Air France-KLM (AFLYY) they have also concentrated.

European airlines reported full or near-complete flights to the United States on the first day of relaxed restrictions.

He Lufthansa Group (PRESSURES) told CNN Business that its operators were operating 31 full flights to the United States on Monday. Virgin Atlantic said its flights were 98% full, while both Swiss Air and British Airways said the passenger volume of flights departing to U.S. destinations was high. The hope is that the U.S. movement will be part of a broader shift in international travel rules as a country. take steps to coexist with the Covid-19 instead of trying to eliminate transmission. Last month, Singapore, a major business travel hub, said it would drop quarantine for fully vaccinated travelers from certain countries, as strict border controls will be tightened in Southeast Asia. “International has risen.” Expedia (EXPE) CEO Peter Kern told analysts after the company reported its earnings last week.

Expedia’s revenue in its last quarter increased 97% compared to the same period last year. Its shares have risen nearly 11% this month.

Kern said the pivot of the United States and Singapore gave an immediate boost.

“We see this increase basically as soon as it’s announced,” he said. “We see that search queries are increasing.”

But after an extremely volatile period, travel companies are hesitant to say the worst is behind them.

“As we look ahead, it’s clear that the recovery will continue to be hectic,” Delta CEO Ed Bastian said in the company’s recent results call.

Still, Bastian noted a “clear underlying impetus,” thanks in part to the lifting of international travel standards. He said the U.S. reopening to foreign tourists marked a “critical moment on our path to international recovery” and predicted that 75% of Delta’s business will be restored by the end of 2021.

What could go wrong? New coronavirus variants that cause an increase in infections remain a threat. Expedia noted that in the third quarter, the Delta variant caused a decline in accommodation and air travel bookings compared to the spring.

“We saw it affected cancellations,” Kern said. “We saw that it affected booking trends.”

Rising fuel prices are also a problem for airlines. They could be forced to pass on some of the higher costs to customers, who then think twice before buying expensive tickets.

Tesla shares fall while Musk promises to sell 10% of its shares

Tens of billions of dollars could be wiped out of Tesla’s market value on Monday due to a Twitter poll.

The last: Tesla (TSLA) Over the weekend, Elon Musk asked his fans if he should sell 10% of his shares, a stake of about $ 21 billion, reports my CNN Business colleague Walé Azeez.

“It’s been a long time coming that unrealized profits are a means of tax evasion, so I propose to sell 10% of my Tesla shares,” he said. “Do you support that?”

The tweet appears to refer to a Democratic proposal for billionaires to pay an annual tax on assets such as stocks, bonds and real estate that have been appreciated but not sold. Musk has criticized the plan.

With more than 3.5 million votes, 58% of respondents said “yes”.

“I was ready to accept any of the results,” Musk continued Sunday.

His exact plan to sell shares is unclear. But Tesla shares fell about 6% in pre-market trading on Monday.

Investor Information: Tesla shares have risen 73% this year, valuing the electric car maker at $ 1.2 trillion. But trade remains hectic.

Last year, shares fell at least 6% in seven trading sessions. They have increased by at least 6% in 13 trading sessions.

Look at this space: Musk has previously fallen into a lack of regulators to post tweets that move the market without proper consultation.

In 2018, the U.S. Securities and Exchange Commission charged him with fraud after Musk tweeted that he was considering taking Tesla privately. He later reached a court-approved agreement requiring the company to first review any social media posts that contained “material” information for shareholders.

World food prices have risen 30% in one year

Strong demand and bleak harvests have brought world food prices to their highest level in more than a decade.

The United Nations recently reported that prices rose for the third month in a row in October, up 3% from September. Profits were driven by a sharp jump in vegetable oil and wheat prices.

Wheat prices rose 5% in October due to reduced harvests from major exporters such as Canada, Russia and the United States.

And earnings show no signs of declining. Earlier this month, December wheat futures reached their highest level since 2012.

Remember: the food price index of the Food and Agriculture Organization of the United Nations has increased by more than 30% over the last year.

In poorer countries with populations desperately in need of food assistance due to conflict or climate change, the increase runs the risk of amplifying pre-existing crises. David Beasley, director of the United Nations World Food Program, recently confronted Tesla CEO Elon Musk after saying he would give $ 6 billion, or 2% of Musk’s net worth, it could help solve world hunger.

Billionaires have to “step up now, all at once,” Beasley told CNN.

Rising food prices could also fuel political discontent in richer countries, where high inflation expectations have caught the attention of policymakers.

Until next time

AMC Entertainment (AMC), PayPal (PYPL), Roblox, SmileDirectClub (SDC) i Verge Galacti (SPCE)c report results after the closure of US markets. Tomorrow: earnings of BioNTech (BNTX), Nio (NIO), Coinbase, DoorDash i Wynn Resorts (WYNN).

– Chris Liakos and Anna Cooban contributed to the report.

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