Wall Street closes lower as virus spike hits travel stocks

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Stocks on Wall Street fell for a second straight day on Tuesday as a global spike in coronavirus cases hit travel-related shares and investors had second thoughts about big U.S. banks’ apparently stellar earnings last week.

Shares of airline operators and cruiseliners including JetBlue Airways, American Airlines, Norwegian Cruise Line and Carnival Corp, which were hammered last year during lockdowns but have climbed recently on the reopening hopes, fell more than 4%.

A leading epidemiologist at the World Health Organization said on Monday the latest rise in COVID-19 infections worldwide reflected increases among all age groups. The CBOE volatility index, known as Wall Street’s fear gauge, climbed above 19 points for the first time since March 31, before closing at 18.71.

“People made the assumption this was a gangbusters quarter for the banking industry when that’s far from the truth,” Bove said, adding second-half profits are expected to be very strong. Netflix tumbled about 10% in after-hours trade following news that the company added fewer-than-expected paid subscribers in the first quarter, weighed down by a lighter content slate in the first half of 2021 due to COVID-19 production delays.

 

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