LUV--
Retail's back again — this time it's energy risks and policy pressures hitting the same trade. Oil is pushing above $110, fuel costs are rising fast. $LUV is getting attention as traders take on downside exposure. Southwest uses about 4 billion gallons of jet fuel yearly and with no big hedging program, they're fully exposed to crude price swings. Throw in tariffs and macro uncertainty, and margins are under pressure from both sides. This is where weak balance sheets and lack of protection get hit first. WSB isn't just speculating — they're betting on volatility. When fuel prices climb and protection is missing, the downside gets priced in quickly.
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