Southwest Airlines cuts workforce by 15% amid challenges
- Delta Air Lines shares dropped 0.8% following a flight crash injuring 18 people.
- Southwest Airlines shares rose 2.4% after announcing a 15% workforce cut.
- Overall, the market shows mixed reactions, highlighting challenges and opportunities in various sectors.
On February 18, 2025, significant moves were observed in the stock market, particularly within the airline and healthcare sectors. Delta Air Lines faced a decline in its shares, dropping 0.8%, following a crash of a flight from Minnesota to Toronto, causing injuries to at least 18 individuals. In contrast, Southwest Airlines reported a rise in share value by 2.4% after the company announced it would cut down 15% of its corporate workforce. This decision was termed as 'unprecedented' by the CEO Bob Jordan, reflecting the company's strategy to streamline operations amid market pressures. Additionally, Fluor, an engineering company, saw its stocks tumble by 5.5% due to disappointing fourth-quarter results and guidance that fell short of analyst expectations. The company reported earnings of 48 cents per share on revenues of $4.26 billion, contrasting sharply with the anticipated 78 cents per share and $4.42 billion in revenue. This has raised concerns about the company’s financial health moving forward. In the medical device sector, Medtronic also faced a 2.5% drop in shares despite exceeding earnings expectations. The company reported adjusted earnings of $1.39 per share on a revenue of $8.29 billion for its third quarter, which although surpassed estimates, was below the expected revenue of $8.33 billion. Analysts noted strong demand for Medtronic's heart and diabetes products, providing a silver lining amid overall disappointing revenue figures. Conversely, Snowflake experienced a stock increase of nearly 3% following an upgrade to 'outperform' by Wolfe Research, citing positive consumption trends as a driving force for growth. Bath & Body Works also witnessed an increase of almost 4% after being upgraded to 'overweight' by JPMorgan, with analysts highlighting expanding operating margins and shareholder returns as contributors to the firm's stability. The mixed trends across these companies reflect both challenges and opportunities in the current market landscape.