Hey Influence Traders,
One of my business partners lives in Maine.
On a call this morning he said, “The clam diggers are out, which means winter is over.”
I have no clue if that’s true, but I do love heading into spring.
Spring Is Springing
The long nights of winter are over …
The days are warmer …
It’s a time of new beginnings …
It also means that spring break and summer vacations are right around the corner … if the world opens up.
COVID Is Slowing Down
Vaccine rollout is going well at home and abroad.
With almost 60 million people vaccinated, the U.S. is approaching herd immunity.
After reaching an all-time high in January 2021, global coronavirus case numbers are beginning to drop.
Signs the Economy Opening Up
Businesses are showing signs of a reopening economy
Texas Gov. Greg Abbott allowed all Lonestar Star businesses to fully reopen and end the statewide mask mandate, so … “Don’t mess with Texas?”
Following Gov. Abbott’s announcement, Mississippi and other states also announced reopenings.
Businesses Following Suit
Retail stores are reporting higher sales of “going out” apparel, which had gone to almost zero over the summer. I’m told by young people in the know that things will soon once again be “LIT.”
Live Nation (Ticker: LYV) announced on an earnings call last week that it recently released nearly 200,000 tickets for summer music festivals in Britain — and they sold out in days. Live Nation has seen its stock price tick up slightly the past month.
Planet Fitness (Ticker: PLNT) saw a net increase in memberships in January. That’s a first since the pandemic began, and it indicates that people want to return to brick-and-mortar fitness. PLNT’s stock, meanwhile, remains volatile and attractive to traders.
Employers added 379,000 jobs in February, which was the strongest showing since October.
– Most of the increases came in the leisure and hospitality industries, which have been particularly hard hit by shutdown orders and employ 3.5 million fewer people than a year ago.
– The February gains included 286,000 jobs in food services and drinking establishments, along with 69,000 at businesses like hotels and gyms.
Capital One (Ticker: COF) announced that it was boosting credit limits, a sign that it anticipates more people will be spending. Subsequently, COF has seen its stock bounce along with other financial names.
Travel Will Start Back Up
It might not happen quickly, but travel will resume this year.
Record-high savings will help drive spending.
Most airlines are striving to keep the supply at the same levels as before in order to keep their cash flow going.
I’m seeing flights to destinations inMexico, the Caribbean and … Albania opening up.
Almost everything is bookable with a few exceptions. For example, New Zealand/Australia is more difficult to book because airlines such as Qantas have decreased their inventory.
Vegas, Baby: Casino giant Caesars Entertainment (Ticker: CZR) has seen bookings rise 20% month on month.
Cruisin’: Royal Caribbean (TICKER: RCL) recently announced to investors that it recorded a 30% jump in new bookings so far 2021 compared to the last two months of 2020. That’s primarily due to people over 65 who are counting on being vaccinated.
I still like Delta (Ticker: DAL). My position is up over 20% since Mark Sebastian and I discussed it back in January.
Nations Are Ready
The UK said it will start allowing international travelers back in sometime in May.
Quantas said it will resume international flights to/from Australia in October.
U.S. domestic travel has already started to rebound quickly and will continue to do so as vaccines become widely available. There has been huge demand for trips to California, Florida and Nevada for summer travel.
In the meantime, road trips have become popular, so AirBnB (Ticker: ABNB) has seen increased demand. While it has seen a recent 10% pullback, it should be positioned well when travel resumes.
Speaking of which, when that happens, I’m going to be on board.
Cutting Through the Noise for You.