Stocks sink as Boeing 737 Max delayed, coronavirus reaches US
More bad new for Boeing slams broader market
U.S. major averages ended the session in the red Tuesday, pressured by a further delay in the Boeing 737 Max's return to service and the first case of the coronavirus reaching the U.S.
Stocks opened lower and took a leg down late afternoon when the first U.S. case of the Coronavirus was confirmed on Tuesday, hours after Chinese officials announced the sixth death due to the virus, which has sickened more than 300 people in the country.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| BA | THE BOEING CO. | 149.27 | +5.87 | +4.09% |
| SP500 | S&P 500 | 5969.34 | +20.63 | +0.35% |
| I:DJI | DOW JONES AVERAGES | 44296.51 | +426.16 | +0.97% |
| I:COMP | NASDAQ COMPOSITE INDEX | 19003.651134 | +31.23 | +0.16% |
Complicating the downward pressure, word that the Boeing 737 Max's return to the skies would be delayed until the summer. The news sent shares of the planemaker to their lowest level in over a year.
U.S. carriers American Airlines, United Airlines and Southwest Airlines were all lower on the news. Delta Air Lines, which doesn't fly the 737 Max, was also under pressure. So too were Spirit Aerosystems and General Electric, which provide parts for the aircraft.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| AAL | AMERICAN AIRLINES GROUP INC. | 14.38 | +0.18 | +1.27% |
| UAL | UNITED AIRLINES HOLDINGS INC. | 95.24 | +0.84 | +0.89% |
| LUV | SOUTHWEST AIRLINES CO. | 31.97 | +0.18 | +0.57% |
| DAL | DELTA AIR LINES INC. | 63.30 | -0.03 | -0.05% |
| SPR | SPIRIT AEROSYSTEMS | 32.49 | +1.14 | +3.62% |
| GE | GE AEROSPACE | 181.15 | +2.45 | +1.37% |
Tesla soared after New Street Research raised its price target to $800 a share. Chinese rival Nio gained for a ninth straight day, more than 60 percent during the streak.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| TSLA | TESLA INC. | 352.56 | +12.92 | +3.80% |
| NIO | NIO INC. | 4.85 | +0.14 | +2.97% |
Elsewhere, Beyond Meat was sharply higher after Starbucks announced it would add plant-based food to its menu.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| BYND | BEYOND MEAT INC. | 4.89 | -0.12 | -2.40% |
| SBUX | STARBUCKS CORP. | 102.50 | +2.44 | +2.44% |
Meanwhile, the oil services provider Halliburton reported better-than-expected fourth-quarter results, but North American revenue plunged 21 percent and the company took a $2.2 billion charge related to its struggling U.S. business.
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Netflix was in focus ahead of the company’s fourth-quarter results, which are due out after the closing bell. The streaming giant is expected to earn 52 cents a share on revenue of $5.45 billion, according to analysts surveyed by Refinitiv.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| HAL | HALLIBURTON CO. | 31.94 | +0.07 | +0.20% |
| NFLX | NETFLIX INC. | 897.79 | +0.31 | +0.03% |
On the commodities front, West Texas Intermediate crude oil slipped to the $58 per barrel level and gold was modestly lower by 0.2 percent near $1,557 an ounce.
U.S. Treasurys gained, pushing the yield on the 10-year note down to 1.773 percent.
In Europe, Britain’s FTSE and France’s CAC were both lower by 0.8 percent and Germany’s DAX closed fractionally higher.
Markets across Asia were under pressure with Hong Kong’s Hang Seng losing 2.8 percent, China’s Shanghai Composite falling 1.4 percent and Japan’s Nikkei sliding 0.9 percent.