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A hot run for shares of Intel slowed on Friday.

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Key Takeaways

• Intel shares plunged Friday after the chipmaker said it's grappling with industry-wide supply shortages and higher memory prices.
• An AI-driven memory shortage has helped sent shares of memory makers, such as Intel supplier Micron, soaring in recent months. 

Intel's stock tumbled Friday after the chipmaker posted a weaker-than-expected outlook. A memory supply crunch that's raised prices is partly to blame—but those same forces have sent shares of component makers soaring lately.

Shares of Intel (INTC) were down over 16% in recent trading, rolling back most of the chipmaker's gains over the past few weeks. Executives warned yesterday that it's grappling with supply shortages along with higher prices that could weigh on its results in the months to come.

Key components, including those associated with memory, have "come under increasing pressure due to intense demand to support the rapid expansion of AI infrastructure," CFO David Zinsner said in a statement. He warned that "rising component pricing is a dynamic we continue to watch closely, especially relative to the client market, and could limit our revenue opportunity this year."

For memory makers like Intel supplier Micron Technology (MU), however, these dynamics could mean more gains ahead after a strong start to the year.

Why This Is Signficiant

Micron, Western Digital, and Seagate's recent stock gains underscore how the biggest stock winners of the AI rally have shifted in recent months as investors discovered bottlenecks in the tech industry's data center buildout.

Micron shares, while little changed around $398 in recent trading, have climbed nearly 40% since the year began after more than tripling last year. Western Digital (WDC), SanDisk (SNDK), and other makers of data storage products have also seen big gains to start the year after a strong 2025.

Citi analysts, who have a "buy" rating and $385 price target on Micron stock, earlier this month told clients that they expect memory supply could become even tighter this year, allowing memory makers to raise prices more than previously anticipated.

This "hyper-bull" phase in the memory market could see prices surge 40% to 50% this quarter, and around 20% the following quarter, according to Counterpoint Research.

Wall Street has been broadly bullish on Micron's stock, along with Western Digital and Sandisk. Most analysts tracked by Visible Alpha have issued "buy" ratings for the shares, which have blown past analysts' mean targets with their recent gains.

Some analysts say haven assets will continue to shine as central banks show preference for gold over currencies

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Key Takeaways

• Stocks have brushed off concerns of international conflict that bubbled up earlier in the week, but investors appear to be hedging anyway.
• Gold is at record highs and flirting with $5,000, while silver topped $100 on Friday.

The conflict over Greenland has eased. Investors are still clinging to haven assets.

Spot gold prices are inching toward $5,000 even as U.S. stocks shrugged off escalating international tensions from earlier in the week. Other precious metals are also extending recent rallies: Silver topped $100 for the first time on Friday, while platinum prices rose above $2,700.

Investors appear to be hedging against the risk that some unexpected event could make U.S. assets less attractive—even without a clear crisis in sight. Whatever the case may be, strategists are calling for gold prices to go even higher, some looking beyond the $5,000 level they have yet to clear.

WHY THIS MATTERS TO YOU

If gold continues to extend its rally for the rest of the year, the precious metal could become the best-performing major asset class again.

David Roche, a strategist at Quantum Strategy, earlier this week said haven assets will continue to shine as central banks show preference for holding gold over currencies, and a new world order is established in which the U.S. plays second fiddle. In an interview with CNBC on Thursday, Roche said gold could hit $6,000.

Citi commodities research strategist Kenny Hu recently raised his near-term price targets on gold to $5,000, and silver to $100—both of which have effectively proven out. He also said silver will continue to outpace gold.

"The multitude of bullish drivers are now likely to remain intact during 1Q'26," he said.

And Goldman Sachs on Wednesday set a year-end gold target of $5,400, citing momentum driven by "private sector diversification buyers, whose purchases hedge global policy risks and have driven the upside surprise to our price forecast."

The "sell America" trade appears alive and well at the moment, but it may not last. In his note last week, Hu said the firm expects "moderating geopolitical risks" to weigh on safe haven assets, particularly gold, later in the year.

One theoretical hedge hasn't done much this week. That's bitcoin, which is allegedly digital gold but hasn't acted much like it lately.

TikTok's deal came just ahead of a January deadline, after a series of extensions

Krisztian Bocsi / Bloomberg / Getty Images

Key Takeaways

• TikTok said Thursday it has finalized a deal bringing its U.S. operations under a joint venture majority owned by American investors.
• The deal ends a yearslong push by the U.S. government for American control of the formerly Chinese-owned platform on national security grounds.

TikTok has finally ironed out a deal giving American investors a majority stake in its U.S. business. One of them is a big name in tech.

The social media platform on Thursday said it has finished the details of an agreement bringing the previously Chinese-owned app's U.S. operations under a joint venture controlled by a group of American investors. Larry Ellison's Oracle (ORCL) is one of the largest investors, along with private equity firm Silver Lake and Abu Dhabi-based MGX, each holding 15%. ByteDance is retaining a 19.9% stake.

Other investors include the family office of Dell (DELL) founder Michael Dell and Revolution, Vice President J.D. Vance's former employer.

Why This Is Signficiant

The deal ends a yearslong push by the U.S. government for China's ByteDance to cede control of the social media app on national security concerns.

TikTok veteran Adam Presser will serve as CEO of the U.S.-based joint venture, with TikTok CEO Shou Chew and representatives from several investors sitting on its board.

The agreement, brokered by President Donald Trump, comes ahead of this week's deadline for TikTok to strike a deal or face a ban of the app in the U.S., after a series of extensions by executive order. Trump on social media Thursday night thanked people within his administration, but also Chinese President Xi Jinping, for working to make the deal happen.

TikTok said Thursday that the joint venture will "operate under defined safeguards that protect national security through comprehensive data protections, algorithm security, content moderation, and software assurances for U.S. users," with its content recommendation algorithm stored with Oracle.

Shares of Oracle were little changed Friday. Read Investopedia's full coverage of today's trading here.

News of the day for Jan. 23, 2026

The S&P 500 enters today's session down 0.4% for the week, on pace for its first two-week losing streak since June.

Michael Nagle / Bloomberg / Getty Images

Stock futures are pointing to a slightly lower open while gold continues to hit record highs; Intel stock is sinking after the chipmaker's first-quarter forecast was softer than expected; TikTok has completed a deal that will allow it to continue operating in the U.S.; Capital One is buying a fintech startup called Brex for over $5 billion; and Amazon is reportedly planning to start another round of layoffs as early as next week after cutting 14,000 jobs in October. Here's what you need to know today.

Stock Futures Slip, Gold Hits New High Near $5,000

Stock futures are ticking lower this morning after two straight days of solid gains for major indexes as the market gets set to wrap up a volatile week of trading. Major indexes have recovered most of the steep losses posted on Tuesday, as concerns about the Trump administration's plans to acquire Greenland have subsided. Futures tied to the S&P 500 and the tech-heavy Nasdaq were down 0.1% recently, while Dow Jones Industrial Average futures slipped 0.3%. Despite the rally of the last two days, the S&P 500 enters today's session down 0.4% for the week, on pace to record its first two-week losing streak since June. Gold futures set another record early this morning, rising as high as $4,970 an ounce. Crude oil futures are also moving higher, trading back above the $60 a barrel mark. The yield on the 10-year Treasury note was at 4.23% this morning, down from 4.25% at yesterday's close and a high of 4.31% on Tuesday during the flare-up of geopolitical tensions. Bitcoin is hovering around $89,000 amid a quiet few days for the cryptocurrency.

Intel Stock Tumbles as Outlook Disappoints

The big mover in premarket trading is Intel (INTC), after the chipmaker released a fourth-quarter earnings report last night that included a softer outlook than analysts had expected. Shares were recently down 13%, putting the stock on track to give up nearly all of this week's gains. The chipmaker topped estimates for the fourth quarter, but its first-quarter projections of breakeven adjusted earnings and $11.7 billion to $12.7 billion in revenue were lower than the analyst consensus. The company said it expects its supply capabilities to be at their lowest point in the first quarter, improving over the course of the year. Shares had gained roughly 50% since the start of the year heading into the results. A number of analysts had expected Intel to beat fourth-quarter estimates but said concerns about competition and supply being able to meet demand remained.

TikTok Closes Deal to Avoid Ban in U.S.

After months of delays for a ban that was supposed to shut the app down in early 2025, TikTok's U.S. operations have finally been sold. The social media company said late Thursday that it has established a joint venture between its original parent company, China-based ByteDance, and a number of investors. The new venture's three largest investors are Oracle (ORCL) and private equity firms Silver Lake and Abu Dhabi-based MGX, with ByteDance retaining a 19.9% stake. Both the Biden and Trump administrations supported a law signed by Biden that would have banned TikTok in the United States, citing national security concerns over an app whose data on millions of Americans could potentially be shared with the Chinese government. TikTok fought the ban, maintaining that it could store data on American users in the United States and avoid having to share it with China, but the law was passed and a sale was forced, although Trump issued several executive orders delaying the ban to allow the deal to be negotiated.

Capital One to Buy Brex for $5.15 Billion

Capital One Financial (COF) shares are moving lower this morning after the banking giant announced an acquisition and fell short of earnings estimates last night. The company said Thursday that it will acquire fintech startup Brex for $5.15 billion in cash and stock, with the deal expected to close in the middle of this year. The deal is the latest for Capital One, which last year completed its merger with credit card provider Discover Financial worth more than $50 billion. The bank also reported fourth-quarter results after the closing bell Thursday, with revenue of $15.6 billion and adjusted earnings per share of $3.86. Analysts had expected $15.5 billion and $4.17, respectively, per estimates compiled by Visible Alpha. Capital One shares were down about 4% ahead of the opening bell.

Amazon Preparing More Layoffs, Report Says

Amazon (AMZN) is preparing another round of layoffs just months after announcing plans to cut some 14,000 jobs, Reuters reported Thursday evening. Reuters reported at the time of the October cuts that they were likely part of a larger plan to eventually cut around 30,000 jobs, meaning the new round will likely be similar in size to the layoffs announced in October. The latest report said that the cuts could start as soon as Tuesday, citing sources familiar with the matter. Workers across Amazon Web Services, retail operations, Prime Video and human resources are reportedly among those who could be affected, though the plans could change. A number of tech giants have cut thousands of jobs in the last few years even as earnings have grown and stocks have soared, with some pointing to the continuously expanding costs of AI infrastructure as a likely factor. Amazon shares—which are flat over the past 12 months, significantly lagging major tech peers—were little changed in premarket trading Friday.

Federal Reserve Chair Jerome Powell and his colleagues are still relying on delayed data.

Chip Somodevilla / Getty Images

Key Takeaways

• The government shutdown in October and November isn't done messing with the economy: key government reports are still delayed and distorted.
  
• A key monthly inflation gauge, Personal Consumption Expenditures, will be a month behind until April, and other data have been skewed by the inability to carry out surveys in October.
  
• The lack of up-to-date inflation data could make Federal Reserve officials hesitant to adjust interest rates in the months ahead, economists said.
  

The 43-day government shutdown may feel like ancient history, but it's still fouling up key economic data.

The government's official reports on inflation have been both delayed and distorted by the shutdown that spanned October and part of November. That's complicating the job of Federal Reserve officials who meet next week to set the nation's monetary policy.

Thursday's report on Personal Consumption Expenditures inflation, which normally covers December, instead covered only October and November, as the Bureau of Economic Analysis played catch-up. Monthly PCE reports won't get back to their regular schedule until April.

The other major inflation report, the Consumer Price Index, was also affected. The Bureau of Labor Statistics skipped gathering October data entirely, since the agency could not carry out the surveys it uses to make the report. The agency also collected prices later in November than it normally would, leading some economists to speculate that holiday sales may have distorted the data.

What This Means For The Economy

The lack of up-to-date data makes it harder to know the true rate of inflation, raising the chances that investors and policymakers will be caught off guard when the government reports finally catch up.

The belated and potentially skewed data is one reason Fed officials are widely expected to hold the central bank's interest rate steady next week, rather than cutting it for a fourth meeting in a row.

Policymakers are torn between keeping the key federal funds rate higher for longer to fight inflation and cutting it to bolster the faltering job market. The Fed relies on economic data to decide whether price hikes or unemployment poses the greater threat to its dual mandate to keep inflation stable and employment high. The central bank may wait for better data before making any moves.

"Fed officials are likely to want to see several more months of data in order to get a clearer understanding of the underlying trends," Brett Ryan, senior economist at Deutsche Bank, wrote in a commentary.

The effects of the shutdown could persist for months to come because of how they've impacted measures of housing costs in particular, economists said. The BLS was forced to use guesswork to estimate how rent and home ownership costs changed in October. That could affect the data until April, when the bureau is scheduled to survey the homes it skipped in October, economists at Goldman Sachs led by Jessica Rindels wrote in a commentary.

"A methodological feature to assume no inflation in October—when data could not be collected—led shelter inflation to be understated across October and November in the prior report," Rindels wrote. "We do not expect an unwind until April 2026, when the units that were supposed to be surveyed in October are sampled again."

Because housing costs are such a big part of household budgets as well as inflation calculations, the snafu could be making inflation seem much lower than it actually is, at least temporarily, wrote Omair Sharif, founder and president of Inflation Insights, in a posted on social media last week.

Annual "core" inflation seemed to cool off considerably over the last three months, with prices rising only 2.6% over the year in December, according to the CPI, down from 3% in September. But if Sharif is correct, that could be a mirage.

"Given distortions in the data, including with respect to rent/OER, core inflation is likely still closer to 3% than 2.5%," Sharif wrote.

In other words, the data "blackout" that Fed officials lamented during the shutdown has brightened up a bit, but not completely.

"Noisy inflation data due to the government shutdown have likely made it difficult for policymakers to gauge the underlying trend of inflation," David Seif, chief economist at Nomura, wrote in a commentary.

JPMorgan Chase CEO Jamie Dimon (left) greets President Donald Trump at an event in 2017 at the White House.

Andrew Harrer / Bloomberg / Getty Images

Key Takeaways

• President Trump on Thursday sued JPMorgan Chase and its CEO Jamie Dimon over the bank's decision to close the president's accounts in the wake of the Jan. 6 Capitol riots.
• "We believe the suit has no merit," said JPMorgan Chase in a statement.
• President Trump has long alleged that America's banks discriminate against conservatives and use "debanking" to punish the right.

President Donald Trump on Thursday sued JPMorgan Chase (JPM) and its CEO Jamie Dimon, alleging the bank illegally closed his accounts in 2021 for political reasons. 

The lawsuit alleges that JPMorgan “without warning” informed Trump in mid-February, a month and a half after the January 6 riots at the U.S. Capitol, that it would close his accounts in two months. Trump was denied recourse and suffered "considerably financial harm and losses" because of the decision, according to the lawsuit.

Suit Points to Political Motivations

The suit asserts JPMorgan’s decision to cut ties with Trump is part of a wider push by banks to deny services on the basis of political affiliation, an effort that the president insists disproportionately affects conservatives. 

JPMorgan’s “unilateral decision came about as a result of political and social motivations, and [the bank's] unsubstantiated, ‘woke’ beliefs that it needed to distance itself from President Trump and his conservative political views,” the lawsuit alleges. 

Trump is seeking "at least" $5 billion in damages, costs and other relief, according to the suit.

JPMorgan Cites Legal, Regulatory Risks

The bank denied it closes accounts on the basis of political or religious affiliation, instead saying it acts when accounts “create legal or regulatory risk for the company.” 

“While we regret President Trump has sued us, we believe the suit has no merit,” said JPMorgan Chase in a statement on Thursday. 

“We have been asking both this Administration and prior administrations to change the rules and regulations that put us in this position, and we support this Administration’s efforts to prevent the weaponization of the banking sector,” the company added. 

Dimon and Trump Have Been at Odds Lately

The lawsuit was the latest evolution in the back-and-forth between Trump and Dimon—who has at times contemplated his own presidential campaign—as well as the president's attempts to combat what he calls "debanking" of conservatives. Trump in August signed an order meant to punish banks and financial institutions that deny service based on political or religious ideology 

A year ago in remarks to the World Economic Forum, Trump targeted JPMorgan, as well as Bank of America (BAC), saying "I hope you start opening your bank to conservatives, because many conservatives complain that the banks are not allowing them to do business within the bank."

“We have never and would never close an account for political reasons, full stop,” a JPMorgan Chase statement read at the time.

Dimon has also taken positions that put him at odds with Trump, lately speaking out about Federal Reserve independence and a proposal to cap interest rates on credit cards.

Shares of Intel have surged to start 2026.

Justin Sullivan / Getty Images

Key Takeaways

• Intel shares slid in extended trading Thursday after the chipmaker's outlook missed analysts' projections.
• Executives warned supplies could hit a low this quarter. 

Intel wants to sell more products. Can it keep up?

Shares of the chipmaker slid late Thursday after Intel's (INTC) outlook missed analysts' projections. Executives in a statement warned that supplies could hit a low in the current quarter. 

"We expect our available supply to be at its lowest level in Q1 before improving in Q2 and beyond," CFO David Zinsner said in an evening statement, as the company contends with industry-wide supply shortages.

Why This Matters to Investors

Intel's weaker-than-expected outlook could dampen enthusiasm for the shares, which have soared in recent weeks amid growing optimism about demand for the company's AI products and ability to win new customers.

Intel has lately warned of supply issues, but investors reacted particularly strongly to the company's description of its effect on its near-term outlook—perhaps indicating valuation concerns given the shares' recent runup. The stock, which edged higher during the regular session, was recently off more than 6% in late action, indicating a return to prices that would reflect a cooling of its red-hot early 2026.

Intel said it expects breakeven adjusted earnings in the first quarter on revenue of $11.7 billion to $12.7 billion, below analysts' projections as compiled by Visible Alpha.

For the fourth quarter, Intel reported adjusted earnings of 15 cents per share on revenue of $13.67 billion, above analysts' estimates.

CEO Lip-Bu Tan said the results showed progress in the company's "journey to build a new Intel," as it looks to "capitalize on the vast opportunity AI presents across all of our businesses."

Shares of Intel had surged in the weeks leading up to the release. They were up nearly 50% for January so far through Thursday's close amid growing optimism about Intel's AI sales.

Harun Ozalp / Anadolu via Getty Images

President Donald Trump on Wednesday walked back his threat to impose tariffs to force the U.S. acquisition Greenland.

Key Takeaways

• Stocks rallied after President Trump dialed back his threats against Greenland, reviving talk of the TACO Trade, a strategy intended to exploit the president's bombastic approach to policy. 
• Over the past year, dip-buyers have reliably been rewarded by Trump's habit of walking back aggressive tariff threats that batter the stock market. But the market has recently taken in stride some events that likely would have presented TACO Trade opportunities last year.

It's Taco Thursday on Wall Street.

U.S. stocks, which rallied yesterday, were extending their gains Thursday after President Donald Trump said he would not use force to take over Greenland nor impose new tariffs on a group of European nations after the U.S. and NATO reached a “framework of a future deal” on Greenland’s sovereignty. 

The détente revived talk on Wall Street of the TACO, or “Trump Always Chickens Out,” concept, which broadly refers to the president’s habit of threatening steep tariffs or other dramatic actions before reducing, delaying, or canceling them. This has inspired the so-called TACO Trade, in which investors buy assets rattled by the president’s threats under the assumption they’ll eventually rebound. 

Why This Is Important

The stock market climbed to a series of record highs last year, and has continued to rise in 2026, despite heightened uncertainty stemming from President Trump's fast-moving politics. In part, the gains have been fueled by investors' belief in a pattern in the president's approach to dealmaking.

"TACO" entered Wall Street’s lexicon via Financial Times columnist Robert Armstrong. "The US administration does not have a very high tolerance for market and economic pressure, and will be quick to back off when tariffs cause pain,” wrote Armstrong in May as stocks rebounded from the carnage of “Liberation Day.”

Later that month, Trump appeared to confirm Armstrong’s theory. Stocks soared on May 12 after the U.S. and China agreed to a 90-day pause on tariffs exceeding 100%, and jumped again weeks later when Trump announced a similar pause on tariffs targeting the EU. 

Is there a strategy for investors here? “Put simply, TACO = BTD,” or “buy the dip,” wrote Michael Brown, senior research strategist at Pepperstone, at the time of that second tariff retreat. Doing so was a profitable strategy last year: The S&P 500 climbed more than 37% between its April lows and the end of 2025. 

“Investors should not be surprised that, once again, buy-the-dip has proven to be a solid investment strategy,” wrote Gina Bolvin, president of Bolvin Wealth Management Group, on Wednesday. 

TACO traders nonetheless face something of a paradox. The trade relies on panic, which gives investors an opportunity to buy stocks “on sale” and, according to the theory, induces Trump to change course. But panic often stems from uncertainty, and investors appear more and more certain that Trump's reversals are inevitable.

A year into Trump’s second term, investors have grown more comfortable—or less uneasy—with his sledgehammer tactics. Lately, actions that might have ravaged markets last year have elicited shrugs, with stocks generally moving ever higher.

The U.S. capture of Venezuelan President Nicolás Maduro earlier this month ratcheted up uncertainty on Wall Street, but the Dow Jones Industrial Average rose to a record high. Gold, a safe haven, and stocks, a risk asset, both hit records last Monday following news the Justice Department opened an investigation into Fed Chair Jerome Powell, an unprecedented escalation in the president’s quest to control the independent central bank.

Some of that may suggest that investors are done reacting strongly to trade policy, which has been found ultimately to be less draconian than first thought—something investors noted last year. “It is becoming increasingly clear that the market is losing interest, or at least is much less sensitive, to new developments on the trade front,” wrote Douglas Porter, chief economist at BMO Capital Markets, in July.

This week's back-and-forth over Greenland demonstrated that Trump can still take the stock market for a ride. Trump's relationship with Wall Street remains unpredictable enough to keep tacos on the menu for the foreseeable future.

Fabrice Coffrini / AFP via Getty Images

Elon Musk's latest statements about the sale of Tesla robots helped lift the company's stock today.

Key Takeaways

• Shares of carmaker and robotics company Tesla rallied on Musk's comments Thursday about the timeline for the public sale of Optimus robots.
• Progress toward robot sales would put the CEO on his way to unlock his trillion-dollar pay package.

The future of robotics, Elon Musk is here to tell you, is on its way.

The Tesla (TSLA) CEO on Thursday said the company's Optimus robots will be available to the public as soon as 2027. "By the end of next year I think we'd be selling humanoid robots to the public," he said in an interview at the World Economic Forum in Davos, Switzerland. "Humanoid robotics will advance very quickly."

Investors are applauding the anticipated rollout of Tesla's humanoid robots, which would mean progress toward one of the performance-based targets—regarding the number of Optimus robots sold—that eventually would unlock Musk's trillion-dollar pay package.

WHY THIS MATTERS TO YOU

If Tesla meets the timeline Musk outlined today, an Optimus robot could be performing your chores as soon as late next year.

The news may also fire up anticipation ahead of the company's fourth quarter earnings report, which is expected after the market's close next week Wednesday. Shares of Tesla were recently up nearly 4% in afternoon trading. Read Investopedia's full coverage of today's action here.

Musk said that Optimus robots are performing "simple tasks" at Tesla's factories now. He expects them to be doing more complex tasks by the end of this year. Musk said in 2024 that the company would have "thousands" of those robots in Tesla factories by the end of last year.

The CEO appears to be advancing on other performance milestones tied to his compensation package: Musk said that Tesla's robotaxis, already in a few cities, will "be very widespread" in the U.S. by the end of this year. He hopes to get approval for them in Europe next month, and possibly "similar timing" for China.

He pressed folks at Davos to be "optimistic" about the future. Musk's departing words for the masses: "Generally, I think, for quality of life, it is actually better to err on the side of being an optimist and wrong, rather than a pessimist and right."

Skyhobo via Getty Images

United Airlines says business travel has been brisk so far in 2026.

Key Takeaways

• Corporate ticket sales are looking strong so far in 2026, which is part of why United Airlines is bullish about the year ahead.
• Airlines have been relying on international and premium ticket sales as less-affluent consumers pull back, putting pressure on main cabin sales.

Business travel is taking off, providing major airlines with a much-needed lift.

The year is off to a "very strong start, but in particular, business volumes have gotten off, and are just really compelling," United Airlines (UAL) Chief Commercial Officer Andrew Nocella said during a conference call after the carrier released its quarterly results this week, according to a transcript made available by AlphaSense.

United said that corporate ticket sales are a high-single-digit percentage above where they were a year ago. Nocella said this "pretty amazing" business demand is expected to continue, factoring into the company's forecast that earnings in the first quarter will rise 37% versus last year.

The increase in business travel has been playing out across the industry as companies prioritize in-person meetings, said Frank Holmes, CEO of U.S. Global Investors, Inc., an investment manager and advisor. "Business travel is coming back at a steady pace across many of the carriers," he said in an email.

It's a welcome development for airlines that have had to rely on international travel and premium ticket sales to drive growth while main cabin ticket sales slump as less-affluent consumers pull back. Shares of United and Delta Air Lines (DAL) have risen about 4% over the past 12 months, significantly lagging the performance of the S&P 500, while American Airlines (AAL) stock has shed nearly 20% of its value in the past year.

Why This News Matters to Investors

Airlines have, generally, been losing money on the act of transporting passengers, and making profit on other business lines, such as co-branded credit cards. Carriers are struggling, in particular, with main cabin domestic tickets.

Main cabin sales are still lagging, United said. Revenue rose 1% year-over-year last quarter in the main cabin, while capacity was up 6%, Nocella said. Premium cabin revenue increased 12% year-over-year, with capacity up 7%, he said.

United, like Delta, has been surprised at how slow the industry has been to curb main cabin capacity, which is not always profitable for carriers. At some point, there will be fewer main cabin seats and less pressure to fill them at a loss, Nocella said.

"I can't predict the [timing], but I do think eventually businesses stop doing unprofitable things," he said, per the transcript. "I remain bullish that we are going to see the performance of the main cabin flip at some point in the future. And when it does, that will be enormous fuel to our margin growth and be great for the industry."