AZUL - Why Shares of Azul Recovered Today
Shares of Brazilian airline Azul (NYSE: AZUL) were up 4.4% in early trading today. The move comes in line with a generally positive day for airline stocks. The sector was sold off heavily in the last week as investors stress over high oil prices crimping profit margins, while ongoing labor shortages have caused flight cancellations. In addition, the tightening of COVID-19 restrictions in China, during a period when they were supposed to be loosening, reminded investors of the ongoing threat to travel from the pandemic.
If that wasn't enough to concern investors, inflation data in the U.S. and around the globe are causing higher interest rates and the fear that the global economy could slow. Of course, Azul won't be immune from these pressures as Brazil is a significant trading partner of the U.S. and China.
The up move today can be seen as part of the typical push-me-pull-you trading debate in a rising rate environment. However, it's unlikely to be over soon, so look for more share price volatility.
For further details see:
Why Shares of Azul Recovered Today