American, JetBlue partnership could face DOJ suit, Uber shares rise, QuantumScape soars

Yahoo Finance’s Ines Ferre reports on the day's trending tickers.

Video transcript

- What a difference a day makes. This time yesterday, we were in the throes of a big selloff, the biggest the market has seen in months. Today, we see stocks trying-- trying to bounce back. They are modestly so. The Dow was up more than 200 points earlier today, but has scaled back that gain. It's now up just 45 points. So we've got the S&P up about four. It was in the red just moments ago. And the NASDAQ composite, pretty nice snapback there, up now 49 points.

Want to take a look at some of the sector winners and losers today because yesterday, you'll remember, all 11 sectors were down. Today, we do have some strength in energy, real estate and health care, but on the downside, industrials seem to be the big losers, along with consumer staples and materials. Want to take a look now at some of the tickers that we are seeing trending on our site today. And for that, we've got Yahoo Finance's Ines Ferre joining us. Ines, what are you watching today?

INES FERRE: Well, Alexis, I'm watching the airlines right now because the Justice Department could come out with a suit against American Airlines and also JetBlue. This is because these airlines had announced a joint venture deal to coordinate service in the Northeast. And they, in fact, implemented part of that alliance with new routes. However, you've got Spirit and Southwest, rivals basically complaining that this alliance was made without public review, that it's stifling competition. And the DOJ suit could try to block that alliance as early as today. That is why you are seeing these stocks under pressure today, Alexis.

- Also, I know Uber is on the rise today, and they are raising their outlook, I guess another sign of sort of you see this stock as a reopening trade, and I guess they're pretty optimistic about what the future holds.

INES FERRE: Yeah, that's right, raising their outlook for the third quarter, saying basically that profitability could be possible this quarter. They're expecting adjusted EBITDA to come in at a loss of 25 million to a profit of 25 million for the third quarter, so anywhere in between there. And it expects to post an adjusted profit in the fourth quarter.

Now meanwhile, if you compare this to Lyft, for example, Lyft had posted an adjusted profit in the second quarter of this year, but you know, these companies have faced challenges. They had trimmed their costs [INAUDIBLE] into its food delivery, even though it has smaller margins during the pandemic, and recently also this labor shortage, pumping bonuses, basically, at drivers to try and incentivize drivers to go out there and drive cars. Of course, that's expected to ease now because you have those unemployment benefits-- extended unemployment benefits that have stopped. But Uber today certainly up 12% on the heels of that outlook raise.

- All right, I know that Uber is our number one trending ticker. Our number two trending ticker, Quantumscape, having a really nice day here. The stock is up better than 14%. What's behind all of that activity?

INES FERRE: Yeah, this is the EV battery company, the solid state battery company. It announced an agreement with an OEM and auto equipment maker. A lot of the deals about this agreement are confidential. This is an unnamed OEM. But it will buy 10-megawatt-hour capacity from the company's [? pre-pilot ?] production line, basically evaluating the prototypes of its solid state batteries. So certainly seeing a nice boost for Quantumscape on the heels of that announcement.

- All right, sounds good. Ines Ferre, thanks so much.