(Reuters) – The Dow Jones Industrial index fell on Monday as shares of the world’s largest planemaker tumbled after a second deadly crash in just five months, but a jump in technology stocks helped cap some losses and lift the broader markets.
Traders work on the floor of the New York Stock Exchange (NYSE) in New York, U.S., March 11, 2019. REUTERS/Brendan McDermid
Boeing Co, the best performing Dow component this year by a wide margin, tumbled 10.7 percent, and was on pace for its worst day in nearly two decades after many airlines grounded the company’s new 737 MAX 8 passenger jet.
American Airlines Group Inc, Southwest Airlines Co and JetBlue Airways Corp were trading down between 0.3 percent and 2.5 percent.
Their losses pushed the Dow Jones Airlines index 0.47 percent lower.
“Boeing without any question is going to be the theme for the Dow index, given its enormous weighting, but I don’t see a spillover to any other indexes except airlines,” said Randy Frederick, vice president of trading and derivatives for Charles Schwab in Austin, Texas.
The high-flying technology sector rose 1.34 percent, the most among the 10 major S&P sectors trading higher.
Apple Inc rose 2.3 percent, and was the biggest boost to the benchmark S&P 500 and Nasdaq indexes after Bank of America Merrill Lynch upgraded the iPhone maker’s shares to “buy” from “neutral”.
Other marquee names also rose — Microsoft Corp, Facebook Inc and Amazon.com Inc gained between 1.2 and 2.3 percent.
Markets earlier shrugged off data which showed U.S. retail sales unexpectedly rose in January, lifted by an increase in purchases of building materials and discretionary spending, but receipts in December were much weaker than initially thought.
This comes on the heels of data from last week that showed U.S. employment growth almost stalled