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Business

Qatar Airways’ $1 Billion Lawsuit Over Peeling Paint On Planes

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Qatar Airways, Airbus have been fighting in the British courts for months over the issue

Doha:

The head of Qatar Airways on Tuesday accused plane-maker Airbus of acting like a “bully” as their billion-dollar dispute over peeling paint looked no closer to a resolution.

The airline and leading plane-maker have been fighting in the British courts for months over the paint problem that seen Qatar Airways ground 23 A350 jets.

“If things were settled, we wouldn’t be still waiting for the trial to happen next year,” Qatar Airways chief executive Akbar Al Baker said at the International Air Transport Association annual general meeting in Doha.

“A manufacturer must never be allowed to use their market dominance to bully their long-standing customer.”

Both sides said they hoped to reach a negotiated settlement after their latest hearing in May, when a London high court judge agreed to a speeded-up trial schedule.

Qatar Airways is demanding about $1 billion in damages over the peeling paintwork, which it says is a threat to the A350’s lightning conductor.

Last year, the airline grounded part of its fleet of A350s and demanded $200,000 in damages per day for each plane out of action.

Airbus responded by cancelling an order worth more than $6 billion for 50 A321s from Qatar Airways, the Middle East’s second biggest carrier and one of its biggest clients.

When asked for a reaction to Baker’s comments, Airbus told AFP: “The best solution is a negotiated one and this is what Airbus is seeking.”

Airbus chief executive Guillaume Faury earlier told reporters the French manufacturer was in discussions “all the time” with Qatar Airways.

“We have this situation to resolve and it takes time. It takes time and sweat, and I’m very frustrated to be in this situation,” he said on Sunday.

“I don’t like to be in this situation with customers, that’s very clear, that’s why we’re trying to work out a solution moving forward. But it’s difficult.”

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

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Business

Air India Prepares One Of The Largest Aircraft Deals In History

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Representatives for Air India and Boeing declined to comment.

Air India Ltd. is considering ordering as many as 300 narrowbody jets, according to people familiar with the matter, in what could be one of the largest orders in commercial aviation history as the formerly state-run airline looks to overhaul its fleet under new ownership.

The carrier may order Airbus SE’s A320neo family jets or Boeing Co.’s 737 Max models, or a mix of both, the people said, asking not to be identified because the discussions are confidential. A deal for 300 737 Max-10 jets could be worth $40.5 billion at sticker prices, although discounts are common in such large purchases.

Winning a narrowbody order in India would be a coup for Boeing, as rival Airbus dominates the skies in the country, the world’s fastest-growing aviation market before the Covid pandemic. IndiGo, operated by InterGlobe Aviation Ltd., is the world’s largest customer for the European manufacturer’s best-selling narrowbodies, ordering more than 700, and others including Vistara, Go Airlines India Ltd. and AirAsia India Ltd. fly planes from the same family.

Production and delivery of 300 planes would likely take years or even more than a decade. Airbus builds about 50 narrowbody jets in a month, with plans to increase that to 65 by the middle of 2023, and 75 by 2025.

Representatives for Air India and Boeing declined to comment. An Airbus representative said the company is always in contact with existing and potential customers, but any discussions are confidential.

“This order presumably involves new methods of financing to play out in the right manner, including factoring in macroeconomic trends — notably the fluctuating rupee and rising inflation,” said Satyendra Pandey, managing partner of aviation advisory firm AT-TV. “Some airlines have placed voluminous orders only to find that they are unable to line up financing at favorable terms. While it is not an outcome that one envisions and certainly not with a group such as the Tatas, nevertheless it has to be planned for.”

Air India’s owner Tata Group is also close to an order for Airbus A350 long-range jets that are capable of flying as far as the US West Coast from New Delhi, Bloomberg News reported this month. Once known for its premium services and advertisements featuring Bollywood stars, the airline still has lucrative landing slots at most major airports, but it faces competition from foreign airlines with nonstop services to India, as well as carriers that fly via hubs in the Middle East.

Tata bought the airline earlier this year in the most high-profile privatization under Prime Minister Narendra Modi. It is expected to consolidate its aviation businesses, including four airline brands. An order for new planes, especially with favorable terms on long-term maintenance, would help it cut costs and compete better with rivals that offer very cheap fares.
 

(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)

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Business

In it for the long haul: Qantas bets on non-stop Sydney-London flights with Airbus order

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  • Orders 12 Airbus ultra-long haul A350-1000 planes
  • Commercial direct Sydney-London flight to start late in 2025
  • 20-hour trip to be world’s longest non-stop flight
  • Orders 20 A321XLRs and 20 A220s to renew domestic fleet
  • Overall Airbus deal could be worth more than $4 bln – Barrenjoey

SYDNEY, May 2 (Reuters) – Qantas Airways (QAN.AX) will fly non-stop from Sydney to London after ordering a dozen special Airbus (AIR.PA) jets, charging higher fares in a multi-billion dollar bet that fliers will pay a premium to save four hours on the popular route.

To be launched late in 2025, the flights will use A350-1000 planes, specially configured with extra premium seating and reduced overall capacity, to ferry up to 238 passengers in a 20-hour trip – the world’s longest direct commercial flight.

Announcing plans for the service on Monday, the loss-making carrier said a strong recovery in the domestic market and signs of an improvement in international flying after the worst of the COVID-19 pandemic had given it the confidence to make a major investment on its future. Qantas forecasts a return to profit in the financial year starting this July.

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The order from the European aircraft maker also includes 40 narrowbody A321XLR and A220 jets to start the replacement of Qantas’ ageing domestic fleet, with deliveries spread over a decade. The airline did not disclose the value of the Airbus deal, but analysts at Barrenjoey estimated in a client note it would cost at least A$6 billion ($4.23 billion).

“Since the start of the calendar year, we have seen huge increases in demand,” Qantas Chief Executive Alan Joyce told reporters at Sydney Airport, where an Airbus A350-1000 test plane flown from France emblazoned with the Qantas logo and “Our Spirit flies further” was parked in a hangar as a backdrop for the announcement.

Qantas shares surged as much as 5.5% on Monday to the highest level since November after it also said debt levels had fallen to pre-COVID levels faster than the market’s expectations.

The A350-1000 order was the culmination of a challenge called “Project Sunrise” set for Airbus and its rival Boeing Co (BA.N) in 2017 to create aircraft capable of the record-breaking flights.

Airbus was selected as the preferred supplier in late 2019, but Qantas delayed placing an order for two years due to financial challenges during the COVID pandemic.

Airbus Chief Commercial Officer Christian Scherer said the aircraft to be used on the Sydney-London flights would offer more fuel storage than A350-1000s currently in operation with other airlines.

The Qantas planes will carry passengers across four classes and will have around 100 fewer seats than rivals British Airways (ICAG.L) and Cathay Pacific Airways Ltd (0293.HK) use on their A350-1000s. The Australian carrier will dedicate more than 40% of the jets’ cabins to premium seating.

CEO Joyce said demand for non-stop flights had grown since the pandemic, when complex travel rules were put in place. Rising fuel costs could be recovered through higher fares, he said, as the airline had done previously on its non-stop Perth-London flights.

In a market update, Qantas said while it expects an underlying operating loss for the financial year ending June 30, 2022, the second half would benefit from improved domestic and international demand, with free cash flow seen rising further in the current quarter.

Barrenjoey analysts forecast Qantas could achieve a 20% revenue premium on the ultra-long haul flights, which Joyce said will also go to New York from late 2025 and possible future destinations like Paris, Chicago and Rio de Janeiro.

Qantas estimated Project Sunrise would have an internal rate of return of around 15%.

($1 = 1.4180 Australian dollars)

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Reporting by Jamie Freed; Additional reporting by Sameer Manekar in Bengaluru; Editing by Diane Craft, Sam Holmes and Kenneth Maxwell

Our Standards: The Thomson Reuters Trust Principles.

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Business

Qantas to break London flight barrier with Airbus jet order

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Qantas Airways Ltd is set to announce a landmark order for Airbus SE A350-1000 jets capable of nonstop flights from Sydney to London as part of a wider deal with the European planemaker, industry sources told Reuters.

The multibillion-dollar order, to be unveiled in a Sydney airport hangar on Monday, brings the Australian carrier a step closer to launching record-breaking direct flights of nearly 20 hours on the lucrative “Kangaroo route” by mid-2025.

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Qantas has touted plans for the world’s longest commercial flights for more than five years, but delayed its “Project Sunrise” due to the coronavirus pandemic.

FILE PHOTO: A model of Airbus A350-1000 jetliner is displayed at the China International Aviation and Aerospace Exhibition, or Airshow China, in Zhuhai, Guangdong province, China September 28, 2021. REUTERS/Aly Song

The deal is a breakthrough for veteran Qantas Chief Executive Alan Joyce who has described nonstop Sydney-London flights as the Holy Grail for the 101-year-old carrier.

UNITED AIRLINES PLANS EXPANSION OF FLIGHTS BETWEEN US, EUROPE

The Australian airline launched the route in 1947 with Lockheed Constellations, when it took several stops and 58 hours of flying. Today’s one-stop flights take almost 24 hours.

Alan Joyce, Chief Executive of Australia’s biggest airline Qantas Airways Ltd. REUTERS/David Gray (REUTERS/David Gray / Reuters Photos)

The expansion comes days after Boeing Co further delayed development of its 777X jetliner, which had at one stage been in contention to allow direct flights from Australia’s east coast to London and New York.

An Airbus-owned A350-1000 was flying on Sunday from Toulouse to Perth, tracking service FlightRadar24 showed.

BOEING SAYS 141 JET ORDERS IN LIMBO AMID WAR IN UKRAINE

Qantas, which has said it would make a significant announcement on Monday about the future of its network, declined to comment. Airbus also declined to comment.

On Sunday, the West Australian newspaper said, without citing sources, that the Qantas order would include 12 A350s, 20 A321XLRs and 20 A220s as well as purchase rights for 106 more airplanes spread among the different types.

Ticker Security Last Change Change %
EADSY AIRBUS SE 27.2725 -0.12 -0.43%
BA THE BOEING CO. 148.85 -5.34 -3.46%

Qantas in December selected Airbus as the preferred supplier for a major order to renew its ageing narrowbody fleet, in a blow to its incumbent supplier Boeing.

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An airBaltic A220 was parked in Sydney on Sunday, FlightRadar24 showed. That destination is not on a normal route for the European carrier. Australia has no A220 operators at present.

(Reporting by Jamie Freed in Sydney and Tim Hepher in Paris; Editing by William Mallard and Clarence Fernandez)

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Technology

Microsoft Flight Simulator Freeware Airbus A330neo, Fenix A320, Christchurch, & Hamilton Island Airports Get New Screenshots

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News

Today Third-party developers had a few new reveals to share about upcoming aircraft and airport add-ons for Microsoft Flight Simulator.

Published on
Giuseppe Nelva

Today Third-party developers had a few new reveals to share about upcoming aircraft and airport add-ons for Microsoft Flight Simulator.

Headwind shared an update about the freeware Airbus A330neo currently in active development and already available on Flightsim.to.

The 3D modeling work for the next update has been finished, with the new wings (including native flex), stabilizers and engines attached to the fuselage. Currently, the developer is focusing on implementing the 7.0 version of the FlyByWire systems.

Next is a single screenshot of the upcoming and much-anticipated Airbus A320 by Fenix Simulations, showcased on its official Discord server.

We then move on to airports and down-under, with NZA Simulations showcasing new screenshots of its upcoming Christchurch Airport (NZCH).

The airport is in closed beta while the developer is working on “detailing the outer areas and some 300 buildings.”

Last, but not least, we stay in the southern hemisphere for a look at AUScene‘s Hamilton Island (YBHM) in Australia.

If you’d like to read more about Microsoft Flight Simulator add-ons, you can enjoy our recent reviews of the Twin Otter, Auckland International Airport, Skiathos Airport, Athens International Airport, Bergamo Orio al Serio Airport, Amami Airport, Bristol Airport, Marrakech Menara Airport, Great Britain Central, Tehran Imam Khomeini Airport, Moscow Sheremetyevo Airport, Shanghai Pudong Airport, Kraków Airport, Fukuoka City & Airport, Fort Lauderdale Airport, Chongqing City & Airport, Manila Airport, Santiago Airport, the Frankfurt City Pack, Key West Airport, the Okavango Delta, Bali Airport, London Oxford Airport, Berlin Brandenburg Airport, the CRJ 550/700, the PA-28R Arrow III, Kristiansand Airport, Macau City & Airport, Bonaire Flamingo Airport, Milano Linate Airport, the Singapore City Pack, Tokyo Narita Airport, Yao Airport, the F-15 Eagle, the Paris City Pack, Greater Moncton Airport, Tweed New Haven Airport, Santorini Airport, Sydney Airport, Helsinki-Vantaa Airport, Reggio Calabria Airport, Bastia Poretta Airport, Munich Airport, Paris Orly Airport, Newcastle International Airport, Sankt Johann Airfield, Dublin International Airport, and Seoul City Wow. We also have a beta preview of Singapore Changi airport.

If you want to learn more about the game itself, you can read our review that will tell you everything you need to know about Asobo Studio’s game.

Microsoft Flight Simulator is already available for Windows 10 and Steam, and Xbox Series X|S.

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Business

Airbus cancels $6bn contract with Qatar Airways after paint fight | Business and Economy News

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Qatar Airways calls Airbus’s decision ‘a matter of considerable regret and frustration’ amid a legal battle over peeling paint.

Airbus has cancelled a $6bn contract with Qatar Airways for 50 of its new A321neo passenger jets, escalating a legal battle between the two companies over paint on the recently delivered A350s.

Qatar Airways called Airbus’s decision announced on Friday “a matter of considerable regret and frustration”.

In December, Airbus was taken to court by Qatar Airways in London, following a series of alleged problems with the Airbus A350 aircraft.

The airline complained  the paint on the recently delivered Airbus A350s was cracking and peeling, exposing copper meshing used to insulate the aircraft against lightning strike.

It is seeking more than $600m in compensation after grounding the affected aircraft – 21 of its 53 A350 jets – claiming the paint issue is a safety risk.

The deal was reportedly worth $6.35bn when it was finalised in December 2017.

Qatar Airways published a video on social media on Friday of the scarred exterior of grounded A350 jets that the airline said underscored “serious and legitimate safety concerns”.

An undated image shows what appears to be paint peeling, cracking and exposed expanded copper foil on the fuselage of a Qatar Airways A350 aircraft [File: Edgar Su/Reuters]

The European Union Aviation Safety Agency independently assessed the issue and found no safety concerns.

“There is no reasonable or rational basis” for Qatari regulators to have grounded the A350s operated by Qatar Airways, Airbus said in documents prepared for a London court hearing on Thursday.

It accused Qatar Airways of instigating the grounding as it was in its own financial interest to keep the aircraft on the ground in light of the coronavirus pandemic collapse in demand for air travel.

Qatar Airways rejected the claims in a statement on Friday.

“These defects are not superficial and one of the defects causes the aircraft’s lightning protection system to be exposed and damaged,” it said. “We continue to urge Airbus to undertake a satisfactory root cause analysis into the cause of the defects.”

An investigation by Reuters news agency showed at least five other airlines reported A350 paint or skin flaws since 2016, well before Qatar raised concerns in November 2020 when an attempt to repaint a jet in World Cup livery exposed some 980 defects.

Airbus has said it is looking at changing the design of anti-lightning mesh for future A350s, but insisted there is adequate backup lightning protection. It says Qatar is undermining global protocols by seeking leverage over safety.



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Business

Boeing and Airbus want Biden administration to delay rollout of 5G cell service, cite safety concerns

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Boeing (BA) CEO David Calhoun and Airbus Americas CEO Jeffery Knittel sent a letter to Transportation Secretary Pete Buttigieg to say the January 5 rollout could cause interference that could “adversely affect the ability of aircraft to safely operate.”

At issue are instruments known as radar altimeters that pilots of commercial airliners need to make safe landings in low visibility conditions. An industry analysis says interference could affect hundreds of thousands of flights each year, delaying flights or causing them to divert.

The CEOs say they have developed a new proposal to limit the power of 5G transmissions near airports, and call on the Biden administration to work with the Federal Communications Commission to adopt such a plan.

The impacts of allowing 5G to deploy, “are massive, and come at a time when our industry is still struggling from the COVID-19 pandemic,” the CEOs said.

he Federal Aviation Administration announced a new rule earlier this month that forbids pilots from using auto-landing and other certain flight systems at low altitudes where 5G wireless signals could interfere with onboard instruments that measure a plane’s distance to the ground.

The rule, which affects more than 6,800 US airplanes and dozens of aircraft manufacturers, could lead to disruptions in some flight routes involving low-visibility conditions, There is a potential risk, the FAA said, that the 5G signals could lead to faulty readings that may make flying unsafe in these conditions.

Characterizing the orders as urgent, the FAA bypassed the typical public feedback process in issuing the restrictions.

— CNN’s Brian Fung contributed to this report

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Business

Qatar Airways sues Airbus in A350 jet damage dispute

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PARIS, Dec 20 (Reuters) – Qatar Airways said on Monday it had started proceedings in a UK court against planemaker Airbus (AIR.PA) in a bid to resolve a dispute over skin flaws on A350 passenger jets, bringing the two sides closer to a rare legal showdown over aviation safety.

The companies have been locked in a row for months over damage, including blistered paint and corrosion to a sub-layer of lightning protection, which Qatar Airways says has now led to the grounding of 21 A350 jets by its domestic regulator.

Airbus insists the carbon-composite passenger jets are safe to fly despite some “surface degradation,” while Qatar Airways says it is too early to say whether safety has been compromised.

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The dispute came to a head last week when Airbus, in what experts called an unprecedented move, accused the Gulf airline of misrepresenting the problem as a safety issue and threatened to call for an independent legal assessment. read more

On Monday, Qatar Airways hit back, saying it had taken its complaint against Airbus to the High Court in London.

“We have sadly failed in all our attempts to reach a constructive solution with Airbus in relation to the accelerated surface degradation condition adversely impacting the Airbus A350 aircraft,” it said in a statement. “Qatar Airways has therefore been left with no alternative but to seek a rapid resolution of this dispute via the courts.”

In a statement late on Monday, Airbus confirmed it had received a formal legal claim. “Airbus intends to vigorously defend its position,” it said.

A spokesman earlier reiterated it had found the cause of the problem and was working with customers and Europe’s safety regulator, which has said it has not identified a safety issue.

Qatar Airways denies that the surface flaws – which witnesses say have left some of the jets with a pock-marked appearance – are properly understood and said on Monday that it wanted Airbus to mount a “thorough investigation”. read more

JETS GROUNDED

Several industry executives said such a public legal fight between two of aviation’s leading players is unprecedented.

The row widened this month when documents seen by Reuters revealed at least five other airlines in varying climates had complained about paint or other surface problems since 2016. Airbus had until recently maintained the problem was focused on paint on Qatar’s A350s, based in the Gulf.

Reuters also first reported that Airbus was looking at changing the anti-lightning system. read more

The planemaker has said it is proposing interim solutions ranging from repairs to repainting and has accused Qatar Airways of ignoring those proposals without reasonable justification.

Qatar Airways reiterated on Monday it could not be sure whether proposed repairs would work without deeper analysis. Its chief executive has questioned why Airbus is still working on a solution if a reliable fix is already available.

The 21 grounded jets represent 40% of its current fleet of A350s, for which it was the launch customer with the biggest order. Other airlines still operate the jet, saying its airworthiness is not affected by what they term cosmetic issues.

The row meanwhile looks set to cost Airbus a bigQatar order for a new A350 freighter version. It received the first firm order for the model on Monday, confirming a previously tentative order for four planes from France’s CMA CGM.

Qatar Airways Chief Executive Akbar Al Baker told the South China Morning Post last week he had previously looked at placing a large order for the cargo A350. Sources now expect Boeing to win the order to replace Qatar’s 34-35 freighters. read more

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Reporting by Tim Hepher
Editing by Mark Potter and Gerry Doyle

Our Standards: The Thomson Reuters Trust Principles.

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Business

Qantas to switch domestic fleet to Airbus in blow to Boeing

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A ground worker walking near a Qantas plane is seen from the international terminal at Sydney Airport, as countries react to the new coronavirus Omicron variant amid the coronavirus disease (COVID-19) pandemic, in Sydney, Australia, November 29, 2021. REUTERS/Loren Elliott

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  • Will buy 20 A321XLRs and 20 A220-300 jets
  • To replace ageing fleet of 737s and 717s
  • Selects Pratt & Whitney engines

SYDNEY, Dec 16 (Reuters) – Australia’s Qantas Airways Ltd (QAN.AX) said on Thursday it has chosen Airbus SE (AIR.PA) as the preferred supplier to replace its domestic fleet, switching away from Boeing Co (BA.N) in a major win for the European planemaker.

The airline said it had committed to buying 20 Airbus A321XLR planes and 20 A220-300 jets and had taken purchase options on another 94 aircraft, subject to board approval expected by June 2022.

Deliveries would start in mid-2023 and continue over the next 10 years to replace an ageing fleet of 75 Boeing 737s and 20 717s, Qantas said.

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“This is a clear sign of our confidence in the future and we’ve locked in pricing ahead of what is likely to be a big uptick in demand for next-generation narrowbody aircraft,” Qantas Chief Executive Alan Joyce said in a statement.

It caps a successful week for Airbus after Singapore Airlines on Wednesday agreed to launch the A350 freighter and the planemaker looks likely to seize a narrowbody order from KLM as early as Thursday, in what would be the second defection to Airbus in 24 hours. read more

The loss of the contract, first reported by Bloomberg News, is a blow to Boeing’s 737 MAX, interrupting a strong run of sales since the jet was cleared for flight late last year following a safety ban.

Qantas has operated Boeing jets since 1959 and was once the world’s only airline with an all 747 fleet. After the Airbus narrowbody win, the U.S. planemaker will now supply only its long-haul 787 Dreamliners.

“Although we are disappointed, we respect Qantas’ decision and look forward to continuing our long-standing partnership,” Boeing said in a statement.

Joyce said in October that Qantas expected to order more than 100 narrowbody and regional planes, with a preferred supplier to be chosen in December.

The airline’s low-cost arm Jetstar already has an order for more than 100 Airbus A320neo family planes that will be combined with the new deal to give Qantas more flexibility and the need for fewer firm commitments.

Qantas plans to order Pratt & Whitney (RTX.N) engines for the fresh batch of Airbus A320neo family planes, having bought rival CFM International engines from GE (GE.N) and Safran (SAF.PA) for the Jetstar order. Pratt will also supply the engines for the A220.

Vertical Research Partners analyst Rob Stallard said the Qantas deal was a sign that Airbus was more focused on building up its narrowbody backlog than raising prices even though it already has a higher market share than Boeing.

“From an Airbus perspective, this should also help convince sceptical suppliers of the business case for moving the A320 family (production) to 75 a month over time,” he said.

Qantas is separately looking at A350 widebodies capable of the world’s longest commercial flights from Sydney to London, with a decision expected next year.

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Reporting by Jamie Freed in Sydney, Tim Hepher in Paris and Eric M. Johnson in Seattle; Editing by Peter Cooney and Richard Pullin

Our Standards: The Thomson Reuters Trust Principles.

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Business

Dow Jones Futures: How To Handle The Market Rally Now; Airbus, Apple, Nvidia, Tesla, Moderna, Peloton In Focus

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Dow Jones futures will open Sunday evening, along with S&P 500 futures and Nasdaq futures. The stock market rally continued to press on to new highs last week, with all the key indexes hitting record highs.




X



The Nasdaq is getting extended, as Tesla and especially Nvidia (NVDA) surged higher last week, with other EV and chip names also soaring. It’s a time to pay close attention and consider some portfolio management.

Meanwhile, take a closer look at EXPE stock, Airbnb (ABNB), Booking Holdings (BKNG), Apple (AAPL), Moderna (MRNA) and Peloton Worldwide (PTON).

Expedia (EXPE), Airbnb and BKNG stock all broke out Friday, buoyed by strong results last week and several positive tailwinds. Covid cases are down sharply, vaccinations are up, travel restrictions are easing while a new Pfizer (PFE) Covid pill offers much-greater treatment for patients who do get the coronavirus.

Travel could be the new hot sector, and far more than online travel sites. Hyatt (H) last week joined several hotel operators breaking out. Even airlines, beset by soaring fuel costs and widespread labor shortages, are starting to bounce back.

Meanwhile, that Pfizer Covid drug news slammed MRNA stock and other Covid vaccine makers. But Moderna stock had flashed several signals in prior months. So did PTON stock, which crashed to a 16-month low Friday on horrible Q3 results.

Finally, Apple stock now has a cup-with-handle buy point. But the AAPL chart shows an important flaw.

Tesla, Nvidia and ABNB stock are on IBD Leaderboard. Nvidia stock and Tesla are on the IBD 50.

The video embedded in this article analyzed the market action and reviewed Airbnb, EXPE stock and Moderna.

Dow Jones Futures Today

Dow Jones futures will open at 6 p.m. ET on Sunday, along with S&P 500 futures and Nasdaq 100 futures.

Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.

Join IBD experts as they analyze actionable stocks in the stock market rally on IBD Live

Coronavirus Cases

Coronavirus cases worldwide reached 249.84 million. Covid-19 deaths topped 5.05 million.

Coronavirus cases in the U.S. have hit 47.28 million, with deaths above 773,000.

Stock Market Rally

The stock market rally had yet another strong performance, with the major indexes rising for the fifth straight week. The Dow Jones Industrial Average climbed 1.4% in last week’s stock market trading. The S&P 500 index rose 2%. The Nasdaq composite popped just over 3%.

The small-cap Russell 2000 surged 6%.

The 10-year Treasury yield fell 10 basis points last week to 1.45%, despite a Fed taper decision and a strong jobs report.

The two standout stocks of the current market rally, Nvidia and Tesla stock, last week ran up 16% and nearly 10%, respectively. Those follow sharp gains in the prior few weeks. At a combined market cap of nearly $2 trillion, that has had a huge impact on the Nasdaq. Both drifted lower Friday, which is probably healthy.

Among the best ETFs, the Innovator IBD 50 ETF (FFTY) climbed 2.5%, while the Innovator IBD Breakout Opportunities ETF (BOUT) rallied 3.9%. The iShares Expanded Tech-Software Sector ETF (IGV) was flat. The VanEck Vectors Semiconductor ETF (SMH) surged 8.4%. Nvidia stock was a major SMH driver last week.

SPDR S&P Metals & Mining ETF (XME) rose 4% and Global X U.S. Infrastructure Development ETF (PAVE) gained 3.4%. The long-suffering U.S. Global Jets ETF (JETS) surged 10.85%. SPDR S&P Homebuilders ETF (XHB) advanced 3.2%. The Energy Select SPDR ETF (XLE) climbed 1.4% and the Financial Select SPDR ETF (XLF) retreated 0.6%.

Reflecting more-speculative story stocks, ARK Innovation ETF (ARKK) edged up 0.8% and ARK Genomics ETF (ARKG) popped 3.8%. Tesla stock remains the top holding for ARK Invest’s ETFs.

Five Best Chinese Stocks To Watch Now

Airbnb Stock

Airbnb stock surged 13% Friday to 201.62 on strong earnings and travel tailwinds. It was the heaviest volume for an up day since the Airbus IPO debut on Dec. 10, 2020.

Shares had moved just past a 177.06 flat-base buy point on Thursday ahead of results. Investors could have used options to play earnings, as IBD Live discussed on Thursday, or bought the gap-up Friday morning.

Expedia Stock

Expedia stock leapt nearly 16% to 182.17 on Friday after swinging to a profit and nearly doubling revenue. EXPE stock cleared a 175.47 buy point in the strongest volume in a year for an up day.

Booking Stock

Booking stock jumped 8.2% to 2,618.97 last week, clearing a 2,540.10 buy point from a flat base, which was right next to a longer consolidation. BKNG stock came up to the buy on Thursday following its earnings report, but erased its intraday gains. Shares surged higher on Friday in the wake of the Expedia and Airbnb earnings and the Pfizer Covid pill news.

Moderna Stock

Moderna stock plunged Thursday and Friday, first on an earnings miss and then on the Pfizer Covid pill. But MRNA stock had flashed myriad sell signals in recent months. That includes taking partial profits in early August, just before the all-time high. On the downside, investors got an early sell signal as MRNA stock plunged through its 10-day line on Aug. 11. Various 21-day line breaks could have offered further signals. But breaking below the 50-day line on Sept. 28, followed by another gap down on Oct. 1, provided strong signals that the Moderna stock run was over, at least for a while.

In most cases, a winning stock will peak before the fundamentals.

Peloton Stock

Much like Moderna, Peloton stock crashed last week after offering many sell signals along the way. PTON stock plummeted 35% to a 16-month low on Friday following a big loss, weak revenue and slashed guidance. Bottom line, with the Covid pandemic waning, people are exercising more outside the home.

After a long, powerful run in 2020, PTON stock broke out again at the very end of last year. Investors probably could have bought the Peloton stock from the 50-day/10-week line a few days earlier, but the breakout initially worked. But after one week, shares began to whipsaw up and down. Investors, especially newer ones, may have wanted to take some profits.

Finally, on Feb. 17, PTON stock fell through its 50-day line, then kept sliding for several weeks. After finding 200-day line support, Peloton ran up to its 50-day line before reversing to fall through the 200-line. PTON stock did rebound again from early May to early July, as the delta Covid wave started to gain steam. But since then, shares have been in retreat.

Apple Stock

Apple stock now has a cup-with-handle base, with a 153.26 buy point, according to MarketSmith analysis. The handle formed after AAPL stock rebounded from its 50-day line following mixed Apple earnings. But the relative strength line is at its worst levels since late June. More broadly, the RS line, the blue line in the charts provided, has been trending slightly lower since August 2020, reflecting Apple stock’s laggard status vs. the S&P 500 index.

Of course, a powerful Apple stock move would quickly revive the RS line. ABNB stock had a lackluster RS line until Friday’s surge.

Meanwhile, news broke late Friday that Apple has hired Tesla’s former Autopilot software director for its secretive Apple Car effort. C.J. Moore came under scrutiny earlier after he appeared to disagree with Elon Musk’s optimistic statements about Tesla self-driving capabilities in Moore’s conversations with California DMV officials.

It’s still unclear when Apple will come out with a car, expected to be electric and have self-driving capabilities.

The Apple Car hiring news had virtually no impact on Apple or Tesla stock late Friday.

Tesla FSD Beta Update

Elon Musk tweeted Friday night that next FSD Beta update, 10.4, would be delayed briefly due to “late-breaking issues.” The new timeline is to release 10.4 to “external” FSD Beta users — FSD owners who have Beta access — on Sunday.

Tesla stock edged lower on Friday, but still rose 9.7% for the week after surging 22% in the prior week. TSLA stock has rallied for 11 straight weeks, nearly doubling over that span.

Market Rally Analysis

The stock market had yet another strong week, with the major indexes and even the Russell 2000 hitting record highs. The Nasdaq is on a 10-day winning streak, managing to advance even with MRNA stock plunging 17%. The composite is starting to look extended, thanks to the likes of Nvidia, Tesla and some near-vertical giants, though Tesla and Nvidia stock did close fractionally lower Friday.

The Nasdaq closed the week 6.1% above its 50-day line. The Nasdaq 100 is 6.7% above the 50-day line, after topping 7% intraday Friday.

When the Nasdaq gets 6% and especially 7% above its 50-day line, it’s at higher risk of a pullback, with the odds rising that any such pullback will be larger. Of course, the market rally can keep moving higher for some time when it’s extended, and pullbacks often are modest. It’s also early in the latest market rally, so it’s less concerning.

Finally, a market rally pullback would likely be healthy, letting leaders pull back to key levels or form new bases, offering new opportunities to buy.

Meanwhile, the market is showing broad strength. Yes, chips are leading the way right now, along with other techs. But travel plays are looking strong, while EV makers, retailers, steel, and industrials are all showing at least pockets of strength.

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What To Do Now

With the stock market rally starting to get extended, investors may not want to build up their exposure substantially. If you’ve gotten deep into margin, you may want to consider backing off, taking some partial profits.

Selling a winning stock into strength or on weakness both have their merits, and there’s no reason you can’t employ both methods.

Investors may want to consider adding exposure to sectors such as travel, which could be ready to lead. Run your screens this weekend and build up your watchlists.

If the market rally does pause or pull back, some leading stocks could form brief consolidations or pull back to key support. So make sure you have capital ready to deploy, yet another reason to take some small winnings now.

Earnings season is off its peak, but it’s not quiet. Meanwhile, Nvidia may lay out its reported metaverse ambitions on Tuesday. Will the actual reality live up to virtual reality hype?

Read The Big Picture every day to stay in sync with the market direction and leading stocks and sectors.

Please follow Ed Carson on Twitter at @IBD_ECarson for stock market updates and more.

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