■ Car rentals are in demand nationwide and locally. 6B
Demand, cost rise in Vegas as travel begins to rebound
With more Americans getting vaccinated and comfortable with returning to the skies, the demand for rental cars in Las Vegas and the cost to rent one are going up.
It’s an encouraging sign for car rental firms that saw revenues plunge in the early days of the pandemic. Some companies offloaded cars sitting idle last year to shore up finances, unsure when travel would rebound. One rental car giant, Hertz, filed for bankruptcy protections last May and sold off more than 200,000 cars, part of a broader plan to emerge from Chapter 11 bankruptcy. But now that tourists are getting vaccinated in record numbers and the travel industry is starting to spring back to life, U.S. rental car companies are scrambling to add new vehicles to their fleet as demand outpaces inventory.
It appears likely to stay this way for at least the next several months.
“We’re seeing a surge in demand
industry have been lagging other areas of the economy throughout the recovery. Analysts have said that both need to show signs of growth for the recovery to remain on track. COVID-19 and the potential for a spike in cases remains a concern, but the strong rollout of vaccinations is making an eventual return to normal for many people seem clearer and closer.
“The jobs report underscored the rebound in the labor market,” said Quincy Krosby, chief market strategist at Prudential Financial. “The only thing that can stymie this rebound, this recovery, will be that COVID-19 launches another wave.”
The S&P 500 rose 58.04 points to 4,077.91. The benchmark index is coming off two straight weekly gains.
The Dow picked up 373.98 points, or 1.1 percent, to 33,527.19. The Nasdaq composite gained 225.49 points, or 1.7 percent, to 13,705.59.
Small company stocks, which are outgaining the broader market so far this year, also rose Monday. The Russell 2000 index of smaller companies added 10.98 points, or 0.5 percent, to 2,264.89. The index is up 14.7 percent so far this year, while the broader market S&P 500 index is up 8.6 percent.
The gains were widespread Monday, with nearly every sector closing higher. Companies that stand to benefit from a broader reopening of the economy and economic growth also did well. Norwegian Cruise Line jumped 7.2 percent for the biggest gain in the S&P 500 as it seeks permission to restart cruises out of U.S. ports in July with a vaccination requirement for passengers and crew members. Rival Carnival rose 4.7 percent and Royal Caribbean gained 2.9 percent.
Technology and communications stocks accounted for a big slice of the gains Monday. Apple rose 2.4 percent, Microsoft gained
2.8 percent and Facebook climbed 3.4 percent. Tesla surprised investors with a report that vehicle deliveries doubled during the first quarter. Its shares surged 4.4 percent.
Energy companies lagged the broader market as crude oil prices fell, including a 4.6 percent slide in the price of U.S. crude. Occidental Petroleum dropped 7.6 percent and Marathon Oil slid 5.1 percent.
Gamestop fell 2.4 percent after announcing a stock sale.
Treasury yields were mostly lower. The yield on the 10-year Treasury note, which influences interest rates on mortgages and other consumer loans, slipped to 1.71 percent from 1.72 percent last week.