No 'Luv' For Southwest Airlines As Justice Department Investigation Trumps Upgrade

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Joel Elconin is the co-host of Benzinga's #PreMarket Prep, a daily trading idea radio show.Southwest Airlines CoLUV
shares were trading lower by $1.09 at $32 in Wednesday's session. The issue started the day on the upside as Buckingham Research upgraded the issue from Neutral to Buy with a reduced price target from $45 to $43. However, the decline in the broad market from the open, coupled with a reported Justice Department investigation regarding airline collusion to keep airfares high has the issue in a tailspin. Around 1:53 p.m. ET, with the issue near its high for the day ($33.97), the surprise report has taken it to a new low for the recent decline. After surpassing the former low of the move with ease ($33.02), it has fallen all the way to $31.92 and continues to make new lows on the day. That marks the lowest level for the issue since it bottomed on October 20, 2014, at $31.38 on its way to its all-time high that was made in January at $47.17.
Editor's note: At time of publication, shares traded at $31.58, down $1.51 or 4.56 percent.
Posted In: TechnicalsIntraday UpdateMoversTrading IdeasPremarket outlook
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