Transcription:
Conway Gittens:
I'm Conway Gittens reporting from the New York Stock Exchange. Here's what we're watching today on TheStreet.
An economic surprise on Thursday could offset earnings angst a day after the biggest stock market sell-off in a year and a half.
The U.S. economy expanded at an annual rate of 2.8 percent in the second quarter, according to gross domestic product figures released by the Commerce Department. Economic growth was a healthy rebound from the 1.4 percent recorded in the previous quarter.
However, earnings season remains a concern for Wall Street. At Ford, results missed expectations and American Airlines' profits fell 46 percent.
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Continuing with airlines…for the first time in its 50-year history, Southwest Airlines is abandoning open seating.
The airline says that “the research is clear and indicates that 80% of Southwest customers and 86% of potential customers prefer assigned seating. When a customer decides to stop flying Southwest and choose a competitor, open seating is cited as the primary reason for the change.”
Southwest is revolutionizing the passenger experience in other ways, too. It’s redesigning the interior of the plane to create premium seats with more legroom, which of course means higher ticket prices. Plus, it will also begin doing “red night” overnight flights for the first time.
The changes come amid intense competition across the airline industry, with a glut of seats on airlines seeking increased demand. In its most recent quarter, Southwest posted a 51 percent drop in profit.
That's it for your daily roundup. From the New York Stock Exchange, I'm TheStreet's Conway Gittens.
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