Published: Thu, March 14, 2019
Economy | By

Boeing stock plunges after Ethiopia crash, sending Dow lower

Boeing stock plunges after Ethiopia crash, sending Dow lower

The dollar fell more steeply shortly after data revealed that the USA consumer-price index climbed 0.2% in February, matching market expectations, while the cost of living over the past year slowed again to 1.5% from 1.6%.

Tumbling shares in U.S. aviation giant Boeing on Monday tore a hole in the Dow Jones Industrial Average, sending the benchmark index into the red for a sixth day.

Stocks are moving steadily higher in midday trading on Wall Street, putting the market on track for its third gain in a row.

The Dow Jones airlines index dropped 2 percent, while the S&P industrials index fell 0.9 percent.

The Dow lost 164 points, or 0.7 per cent, to 25,2872. The Nasdaq rose 32 points, or 0.4 percent, to 7,591. Microsoft added 1.1 per cent and UnitedHealth Group climbed 2.6 per cent.

The modest gains Tuesday follow a rally on Monday that snapped a five-day losing streak.

This photo taken on December 15, 2018 shows a Boeing 737 MAX 8 airplane delivered to Air China during a ceremony at Boeing Zhoushan 737 Completion and Delivery Center in Zhoushan, in China's eastern Zhejiang province.

Google's parent company Alphabet rose 2.2 percent and Botox maker Allergan rose 2.1 percent.

USA stocks rose on Tuesday as benign February inflation data supported the Federal Reserve's dovish stance on future rate hikes, but Boeing's fall for a second straight session pressured the Dow.

The S&P 500 last week registered its biggest decline since the end of 2018 after tepid job and other economic data, but the index is up about 11 percent for the year so far. The stock vaulted 25.2 percent. The Nasdaq rose 39 points, or 0.5 percent, to 7,579. The blue chip Dow Jones Industrial Average finished at 25650.88, up 200.64 or +0.78% and the tech-based NASDAQ Composite closed at 7558.06, up 149.92 or +2.01%.

Technology stocks are powering broad gains on Wall Street, although a drop in Boeing is weighing on the Dow Jones Industrial Average.

Bond prices rose. The yield on the 10-year Treasury note fell to 2.63 percent.

Tilray gained 3.1 percent, while Canopy Growth added 1.4 percent.

Boeing Co slumped 6.4 percent extending Monday's losses, as more countries grounded the company's best selling line of jets following a second fatal crash in five months, while Senators Mitt Romney and Elizabeth Warren also urged the Federal Aviation Administration to temporarily ground the aircraft. A key sales figure fell 2.2 percent in the period, worse than what analysts were expecting.

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