Spirit Airlines Descends Cautiously on Wall Street

Spirit Airlines was among the largest decliners on the stock exchanges in New York on Monday with a loss of more than 5 percent.

 

The budget airline stands by its decision to merge with competitor Frontier Airlines and to accept the offer of 2.7 billion dollars from Frontier Group, the owner of Frontier Airlines. Spirit Airlines thus rejects the hostile bid of 3.7 billion dollars from its peer JetBlue. JetBlue rose 1.3 percent.

The mood on Wall Street was cautious after the solid price gains of around 3 percent on Friday. Shortly after opening, the Dow-Jones index was 0.1 percent lower at 31,455 points. The S&P 500 fell 0.2 percent to 3,901 points. However, the index of the five hundred largest listed companies in the United States is still heading for the largest price loss in the first half of a year since 1970. Tech gauge Nasdaq fell 0.4 percent to 11,557 points.

On the macroeconomic front, it was announced pre-market trading that durable goods orders rose more than expected last month. Orders for goods that last several years, such as cars and white goods, increased by 0.7 percent in May. Economists had previously expected a 0.2 percent increase.

Coinbase Global fell nearly 9 percent. Analysts from investment bank Goldman Sachs advise selling the share of the crypto exchange due to the sharp decline in the number of transactions in the crypto market.

The online marketplace for handmade and vintage products Etsy suffered a downgrade by securities house Needham and lost 3.7 percent. Nike lost 2 percent. The sportswear manufacturer comes with results after the closing bell. Last week, analysts warned that the sports brand could suffer from the reduced purchasing power of consumers and the aftermath of lockdowns in China.

BioNTech gained 3.3 percent and Pfizer fell 0.2 percent. The pharmaceutical companies stated that the modified booster shot better arms the immune system against the omikron variant of the coronavirus.