The Dow and S&P 500 have been unable to hold gains. The Nasdaq, though still in positive ground, is retreating.
Despite broad declines, airline stocks are flying higher. In addition
to sharply lower oil prices (69.95, -4.59), Southwest Airlines (LUV
12.30, +0.74) and Continental Airlines (CAL 15.04, +2.20) both
announced third quarter earnings per share results that bested
expectations. Their positive earnings surprise has spread to other
carriers, helping to lift the Amex Airline Index more than 12%.
The industry's relative strength this session has also helped small-cap
carriers like UAL (UAUA 8.84, +1.49) and US Airways (LCC 6.28, +0.99)
surge. Their movement is helping the Russell 2000 (+1.0%) outperform
the larger indices.