Question

You are an equity analyst covering the tourism industry. To answer this question, pick an airline company which is currently listed on a stock exchange. You will consider the time-period and daily share price of the company that you picked for the period 1st December 2019 to 1st of April 2020. Carefully identify at least two major news stories, events or issues related to the company that impacted the share price by 5% or more on the day of release (this can be intra-day or closeprice) and why they impacted the share price in the way that they did. You should include a price chart of some sort, with annotation, which clearly shows each major news impact on the price. Marks are allocated for relevant news story, clearly annotated diagrams and discussion as to why the identified news impacted share price .

Answer 1

Stock selected - United Airlines

Date	Price	Open	High	Low	Change %
Apr 01, 2020	25.65	29.51	29.69	25.36	-18.70%
Mar 31, 2020	31.55	31.31	33.6	30.58	4.61%
Mar 30, 2020	30.16	30.69	31.8	28	-8.16%
Mar 27, 2020	32.84	35	35	32.04	-7.62%
Mar 26, 2020	35.55	38.42	39.77	34.55	-2.87%
Mar 25, 2020	36.6	38	39.45	33.43	10.91%
Mar 24, 2020	33	32.3	34.12	30.13	25.71%
Mar 23, 2020	26.25	25.97	26.6	23.37	7.14%
Mar 20, 2020	24.5	23.37	30.74	22.2	15.13%
Mar 19, 2020	21.28	21.34	23.93	18.09	-0.47%
Mar 18, 2020	21.38	28.8	28.89	17.8	-30.29%
Mar 17, 2020	30.67	36.49	38.14	30.05	-13.53%
Mar 16, 2020	35.47	34.34	39.37	30.38	-14.82%
Mar 13, 2020	41.64	41.33	42.49	34	12.30%
Mar 12, 2020	37.08	42.77	44.31	37.01	-24.85%
Mar 11, 2020	49.34	50.53	51.23	48.05	-6.13%
Mar 10, 2020	52.56	51	54.33	46.62	12.36%
Mar 09, 2020	46.78	49.59	50.99	45.91	-10.21%
Mar 06, 2020	52.1	48.61	56	48.26	0.99%
Mar 05, 2020	51.59	57.11	57.16	50.93	-13.25%
Mar 04, 2020	59.47	59.51	59.74	56.31	2.02%
Mar 03, 2020	58.29	63.14	63.53	57.96	-4.85%
Mar 02, 2020	61.26	61.13	61.27	57.04	-0.54%
Feb 28, 2020	61.59	62.85	64.88	60.83	-5.16%
Feb 27, 2020	64.94	62.9	69.02	61.2	-2.39%
Feb 26, 2020	66.53	71.75	71.91	65.89	-5.72%
Feb 25, 2020	70.57	75.76	76.18	70.32	-6.49%
Feb 24, 2020	75.47	75.08	76.02	73.65	-3.26%
Feb 21, 2020	78.01	79.4	79.4	77.32	-2.38%
Feb 20, 2020	79.91	79.3	81.67	79.3	0.62%
Feb 19, 2020	79.42	80.94	80.94	79.19	-1.02%
Feb 18, 2020	80.24	79	80.62	78.65	0.87%
Feb 14, 2020	79.55	81.02	81.44	79.4	-1.78%
Feb 13, 2020	80.99	81	81.74	80.37	-1.47%
Feb 12, 2020	82.2	81.08	82.6	81	2.07%
Feb 11, 2020	80.53	80.02	81.45	79.94	1.33%
Feb 10, 2020	79.47	78.95	79.61	77.78	-0.01%
Feb 07, 2020	79.48	80	80.24	78.65	-1.27%
Feb 06, 2020	80.5	82.4	82.72	79.79	-1.65%
Feb 05, 2020	81.85	80.76	82.36	80.05	3.75%
Feb 04, 2020	78.89	76.64	79.53	76.5	5.31%
Feb 03, 2020	74.91	75.49	77.12	74.88	0.15%
Jan 31, 2020	74.8	77.17	77.29	74.52	-3.79%
Jan 30, 2020	77.75	74.66	77.98	74.44	3.38%
Jan 29, 2020	75.21	77.4	77.49	75.01	-2.39%
Jan 28, 2020	77.05	78.25	78.47	77	-0.75%
Jan 27, 2020	77.63	78	78.46	76.55	-5.21%
Jan 24, 2020	81.9	84.31	84.73	80.28	-3.51%
Jan 23, 2020	84.88	83	85.17	81.06	1.85%
Jan 22, 2020	83.34	86.75	87.56	83.15	-2.86%
Jan 21, 2020	85.79	87.88	88	84.57	-4.36%
Jan 17, 2020	89.7	89.8	90.1	88.96	0.18%
Jan 16, 2020	89.54	88.79	89.72	88.78	1.42%
Jan 15, 2020	88.29	87.61	88.8	87.25	0.50%
Jan 14, 2020	87.85	88.17	89.64	87.71	1.10%
Jan 13, 2020	86.89	87.31	87.67	86.7	-0.48%
Jan 10, 2020	87.31	88.04	88.26	86.97	-0.73%
Jan 09, 2020	87.95	87.72	88.72	87.5	0.74%
Jan 08, 2020	87.3	86.9	88.45	86.3	0.61%
Jan 07, 2020	86.77	87.41	88.16	86.74	-1.06%
Jan 06, 2020	87.7	86.72	88.07	86.65	-0.23%
Jan 03, 2020	87.9	86.8	88.16	86.26	-2.05%
Jan 02, 2020	89.74	89.57	90.57	89.11	1.87%
Dec 31, 2019	88.09	87.71	88.46	87.71	0.15%
Dec 30, 2019	87.96	88.51	88.86	87.51	-0.46%
Dec 27, 2019	88.37	89.31	89.39	88.01	-1.00%
Dec 26, 2019	89.26	89.3	89.72	88.8	0.12%
Dec 24, 2019	89.15	89.46	89.63	88.66	-0.32%
Dec 23, 2019	89.44	89.72	90.1	89.28	0.18%
Dec 20, 2019	89.28	89.37	89.9	89.05	0.07%
Dec 19, 2019	89.22	89.28	89.78	89.05	0.43%
Dec 18, 2019	88.84	89.5	89.98	88.36	-0.58%
Dec 17, 2019	89.36	88.57	89.99	88.35	0.82%
Dec 16, 2019	88.63	87.95	89.46	87.95	1.20%
Dec 13, 2019	87.58	88.2	89.43	87.42	-1.01%
Dec 12, 2019	88.47	87.7	89.9	87.32	1.67%
Dec 11, 2019	87.02	86.47	87.15	86.08	0.59%
Dec 10, 2019	86.51	87.58	87.92	86.36	-1.26%
Dec 09, 2019	87.61	88.49	88.58	87.3	-1.10%
Dec 06, 2019	88.58	88.79	89.5	88.55	0.82%
Dec 05, 2019	87.86	89.1	89.33	87.6	-0.35%
Dec 04, 2019	88.17	89.16	89.81	88.13	-0.79%
Dec 03, 2019	88.87	90.6	90.78	88.5	-3.01%
Dec 02, 2019	91.63	93	93.62	91.44	-1.26%

March 25th - There was a gain of over 10% compared to March 24 closing price. This gain is due to the folllowing

The increase is beacuse Senate Bill gave a huge grant to the airlines who were struggling due to the pandemic. Their going concern was a big question. Salaries and operating expenses were very difficult to manage. This package was a relief and hence led to an increase of over 10%.

March 18- A fall in share price of over 30% compared to previous day closing price. The decrease was because the announcement from Washington was not what the market was expecting. Shares fell because the $50 billion package was all in the form of loans and no grants were announced.

U.S. Senate bill to grant airlines bailout to weather coronavirus REUTERS Coronavirus Mar 25, 2020 04:00PM ET

U.S. airlines shares plunge after cash- free Washington rescue proposal REUTERS Stock Markets Mar 18, 2020 04:48PM ET