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U.S. airlines are the biggest drag on the Nasdaq 100 today. As of this writing, American Airlines’ stock price has dropped by 6.6% with 10.46 million shares traded, while United Airlines has fallen by 5.43% with 3.79 million shares traded. Nvidia is also down, with a 5.02% decline and 5.51 million shares traded.
The slump in airline stocks is primarily due to concerns over the Coronavirus. European airlines have been hit as well, with Air France in Paris down 5.56% and Lufthansa closing 4.33% lower. Hotel and casino operators are also experiencing declines. Adding to the bearish sentiment, last week’s earnings reports were disappointing: American Airlines reported earnings per share of $0.95, missing the estimated $1.14, while United Airlines posted earnings per share of $2.53, below the expected $2.65.
Technically, American Airlines’ share price has triggered a bearish descending triangle pattern, with a potential target of $23.28 as long as the price stays below $28.
United Airlines’ share price could see further declines in the coming weeks if it closes below the 2019 low of $76.97. A break below this level would trigger the breakout of a large rectangle pattern, targeting $57.93. This bearish pattern will remain in play unless the price moves back above the 2019 low.
On the other hand, Walgreens Boots is one of the few bright spots in the Nasdaq 100 today, up 0.48% with 1.64 million shares traded.