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Delta Air cuts first quarter operating margin forecast, citing higher cost...


´╗┐Delta Air Lines Inc (DAL. N) on Monday cut its operating margin forecast for the current quarter, citing higher costs, and said it expected passenger unit revenue, a closely watched revenue metric, to be at the lower end of its forecast. The No. 2 U.S. airline by passenger traffic Delta said its margins will likely contract this year as the pace of revenue improvement lags cost increases."Market fuel prices are tracking up about 55 percent for the quarter, which is expected to be the greatest year-on-year increase in 2017," the company said in an investor presentation. Delta Air now expects operating margins to increase about 10-11 percent, less than 11-13 percent rise it had previously forecast.

The airline now expects passenger unit revenue, which compares sales to flight capacity, to be about flat in the first quarter ending March. (bit.ly/2msPAf6)

It had earlier expected passenger unit revenue to be between flat and up 2 percent. The company's shares were down 1.3 percent at $49.50 in premarket trading.

Trump adviser Navarro: U. S, Germany should discuss trade outside EU WASHINGTON Trump administration trade adviser Peter Navarro said on Monday the $65 billion U.S. trade deficit with Germany was "one of the most difficult" trade issues, and bilateral discussions were needed to reduce it outside of European Union restrictions.

Muted response to Deutsche Bank's $8.5 billion cash call, strategic u-turn BERLIN/FRANKFURT Deutsche Bank's request for shareholders to sign an 8 billion euro ($8.5 billion) check to back its new strategy got a lukewarm reception on Monday from investors who want more detail on its plans.

U.S. factory orders rise for second straight month WASHINGTON New orders for U.S.-made goods increased for a second straight month in January, suggesting the recovery of the manufacturing sector was gaining momentum as rising prices for commodities spur demand for machinery.

S&P, Dow hit record highs as oil prices rally


´╗┐The S&P 500 and the Dow Jones Industrial Average hit record intraday highs on Thursday as a rally in oil prices added to optimism about U.S. President Donald Trump's proposed tax reforms. Oil prices surged 2 percent on Thursday after data showed a surprise decline in U.S. inventories, suggesting a global oversupply maybe be ending. [O/R]The S&P 500 energy index jumped 0.9 percent, led by gains in Exxon and Chevron. The sector also provided the biggest boost to the broader index. U.S. stocks have been on a record-setting rally in the past two weeks after Trump said his administration would make a major tax announcement in the coming weeks. Treasury Secretary Steven Mnuchin told CNBC on Thursday that he expected a "very significant" tax reform to be enacted by Congress' August recess."There is an incremental buy on the market everyday," said Drew Forman, co-head of sales and trading equity at Macro Risk Advisors in New York."However, people are getting complacent ... and we're going to need to see some results from the president and the government on some of these policies before we see a huge breakout."

The S&P 500 has not moved more than 1 percent in either direction since Dec. 7. At 9:33 a.m. ET, the Dow Jones Industrial Average was up 38.11 points, or 0.18 percent, at 20,813.71. The index has hit record highs in nine of the past 10 sessions. The S&P 500 was up 4.94 points, or 0.21 percent, at 2,367.76 and the Nasdaq Composite was up 2.30 points, or 0.04 percent, at 5,862.93. All of the 11 major S&P 500 sectors were higher, with industrials and technology bringing up the rear.

A Labor Department report showed the number of Americans applying for unemployment benefit rose slightly more than expected last week, but the four-week average of claims fell to its lowest level since 1973, pointing to strengthening labor market conditions. Shares of HP Inc rose 4.5 percent to $16.92 after the computer hardware maker reported a rise in quarterly revenue. Boston Scientific slumped 6.7 percent after the company recalled its Lotus Valve heart devices, citing reports of problems with the locking mechanism. Shares of rival Edwards Lifesciences rose 7 percent and were the biggest gainers on the S&P.

U.S. labor, housing markets data underscore economy's stamina WASHINGTON The number of Americans filing for unemployment benefits rose slightly last week but the four-week average of such claims, considered a better gauge, fell to a 43-1/2-year low in a sign of a strengthening labor market.

NYSE plans trial run for Snap IPO The New York Stock Exchange will conduct a trial run of Snap Inc's initial public offering on Saturday, according to a notice given last week to stock traders, in anticipation of what is expected to be the biggest U.S. technology IPO in nearly five years.

Former Valeant and Philidor executives plead not guilty in fraud scheme NEW YORK A former Valeant Pharmaceuticals International Inc executive and the former chief executive of mail order pharmacy Philidor Rx Services pleaded not guilty on Thursday to charges they orchestrated a multi-million dollar fraud and kickback scheme.