7:12 a.m. The Dow Jones Industrial Average looks set for a lower open after the tragic crash of Boeing (BA) jet caused the plane manufacturer’s stock—the highest-priced in the blue-chip benchmark—to tumble.
The Dow’s drop is simply due to math. It is a price-weighted index, and the stocks with the highest prices count the most. Boeing is down 8.4% to $387 after the crash of a 737 MAX 8 that killed more than 150 people, raising concerns about the safety of its jets. The aircraft maker has the highest-priced stock in the Dow, and that drop is weighing heavily.
As for the rest of the market, it is a quiet morning. It was confirmed that a summit between U.S. President Donald Trump and his Chinese counterpart Xi Jinping has been postponed until April, but that doesn’t seem to be bothering markets much. NatAlliance Securities’ Andrew Brenner suspects that the delay is a result of Xi not wanting to come to the U.S. and walk away without a deal. “Tariff negotiations do not seem to be going well and that is a problem,” Brenner writes. “In fact the mantra has probably changed from buying on the rumor of a trade deal and selling on the fact, to buying on the deal if it is a real deal.”
Which, of course, would be good news…if a deal gets done.
Write to Ben Levisohn at [email protected]