Southwest (LUV) - Get Southwest Airlines Co. Report stock was flat in intraday trading Wednesday after the carrier said the spread of the delta variant of COVID puts its ability to secure a third quarter profit into question.
The airline was among the first public companies to register an impact from the delta variant.
Is Southwest the first domino?
Jim Cramer told Action Alerts PLUS senior analyst Jeff Marks that the messaging from Southwest helps to vindicate Federal Reserve chair Jerome Powell's approach to the economic recovery.
Powell has been firm in his decision to take a 'wait and see' approach when it comes to discussion of Fed tapering or future interest rate hikes.
"I applaud him [Jerome Powell] for not bending to the wishes of the media and a bunch of hedge funds. If he had listened to [them], he would now be worried that he has to cut back," Cramer said.
Recap TheStreet Live: Everything Jim Cramer Is Watching 8/11/21