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Stocks - Boeing Drags on Dow as Stocks Slump

Published 04/08/2019, 09:49 AM
© Reuters.
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Investing.com - Stocks fell at the start of trading Monday, with Boeing putting pressure on the Dow Industrials.

The Dow Jones Industrial Average fell 0.59%, while the S&P 500 was off 0.35% and the tech-heavy Nasdaq Composite fell 0.47%.

Boeing (NYSE:BA) stock slumped 4.1% in response to news that it will cut output of its 737 Max aircraft in the wake of two fatal crashes.

“The biggest story today is Boeing, which is a key company in the U.S. and is giving markets a soft tone to start the day,” said Rick Meckler, partner at Cherry Lane Investments.

“In general, there is a concern that stock prices don’t match equity earnings.”

Among other individual stocks, General Electric (NYSE:GE) stock fell 5.7% after JP Morgan Chase analyst Stephen Tuma cut his target price for the company.

And Southwest Airlines (NYSE:LUV) stock fell 1.9% after Raymond James analysts warned that the grounding of its 34 737 Max aircraft could stretch into the peak summer season.

Investors are also closely watching for developments in U.S.-China trade negotiations. The White House said on Friday after three days of trade talks with Chinese officials in Washington that the negotiations “made progress on numerous key issues” but “significant work remains.”

-- Reuters contributed to this report.

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