Boeing's stock set to slash more than 250 points from Dow industrials as China grounds 737 planes

Shares of Boeing Co. BA, +0.00% on Monday were poised to cut more than 300 points from the Dow Jones Industrial Average, following a fatal crash of a 737 plane in Ethiopia that has resulted in China grounding all of the airplanes of that model, according to reports. Boeing’s stock, a component of the blue-chip Dow industrials index, was down 11.5% or $48.54, based on Friday’s close, in premarket action, with that decline, if it holds, set to slash about 330 points from the Dow at the open. A $1 move of any of the Dow’s 30 components equates to a decline of 6.8 points in the Dow DJIA, -0.09% which is a price-weighted index rather than market-capitalization weighted like the S&P 500 index SPX, -0.21% and the Nasdaq Composite Index COMP, -0.18% The premarket decline in Boeing’s shares come less than 48 hours after a 737 MAX 8 Ethiopian Airlines jet crash, resulting in the death of 157 people, with that tragedy coming about six months after a separate crash involving another Boeing 737 MAX 8, according to reports. The Civil Aviation Administration of China cited the crash of an Indonesian Lion Air jet in October in its decision to ground all 96 of its Boeing 737s, reports say.

See Full Story Dow futures slump as Boeing’s stock drops premarket following plane crash

Dow futures fall on Monday, dropping more than 100 points as Boeing shares fall sharply in premarket trading after the crash of a 737 Max 8 aircraft that killed 157 on board, the second accident in six months for its newest and popular plane.

Have breaking news sent to your inbox. Subscribe to MarketWatch’s free Bulletin emails. Sign up here.

Read More Here...

Bookmark the permalink.