Tech Companies Shares Offset Slump in Boeing as Markets Close Higher
Mar 15 2019
United States stocks eked out gains 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 and capped gains in broader markets. "In particular, we have seen a sharp rise in United Kingdom growth figures, with a 0.5% monthly figure and 1.5% year-on-year number proving that the United Kingdom economy remains resilient despite Brexit fears and a wider global slowdown".
But once again, the DOW lagged behind, being pulled lower by Boeing (BA).
Boeing has not publicly addressed concerns about the 737 MAX 8 model or the grounding of its planes in three countries.
Trader Jeffrey Vazquez works on the floor of the New York Stock Exchange, Tuesday, March 12, 2019.
The S&P 500 (^GSPC) rose 0.3%, or 8.22 points, as of market close.
At 9:50 a.m. ET the Dow Jones Industrial Average was down 122.51 points, or 0.48 percent, at 25,327.73.
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".
Stocks are moving steadily higher in midday trading on Wall Street, putting the market on track for its third gain in a row. That snapped a five-day losing streak for the S&P, which was coming off its worst weekly stumble this year.
In the meantime, shares of the Dow component Boeing plunged more than 6 percent on Tuesday after an Ethiopian Airlines plane crash that happened on Sunday.
Bond prices rose. The yield on the 10-year Treasury note fell to 2.61 percent from 2.64 percent late Monday.
The S&P 500 index rose 24 points, or 0.9 per cent, to 2,815. The Nasdaq rose 16 points, or 0.2 per cent, to 7,576. The Nasdaq gained 2 percent. Hong Kong's Hang Seng fell 0.5 percent to 28,776.10, while the Shanghai Composite dipped 0.8 percent at 3,035.15.
Technology stocks powered the market's early gains.
Google's parent company Alphabet added 1.3 per cent in the first few minutes of trading Wednesday.
On the other hand, Facebook made gains of 1.47 percent after Nomura Instinet upped it to purchase it from neutral. The Dow, which was down nearly 50 points points in Tuesday early trading, would have been trading higher if not for Boeing's losses.
The S&P index recorded 35 new 52-week highs and one new low, while the Nasdaq recorded 25 new highs and four new lows.