US stocks mixed as industrials slid but tech shares gained
U.S. stocks closed mixed Monday as shares of industrial companies declined but several tech firm equities rose. The S&P 500 booked its eighth consecutive session of gains and its longest winning streak since 2017.
Boeing shares fell on a downgrade by Bank of America, cutting the Dow Jones Industrial Average, and GE stock declined after another analyst downgraded the shares.
Bank of America cut its rating on Boeing stock to Neutral from Buy, saying the company's 737 Max jet problems are worse that previously understood.
The bank also cut its share price target to $420 from $480 as the Seattle-based aerospace giant cuts production of its 737 Max passenger aircraft model while it overhauls faulty software that contributed to a pair of recent deadly crashes.
GE shares fell after JPMorgan analyst Stephen Tusa cut its rating on the stock, saying Wall Street is overestimating the speed and extent of the company's rebound.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| I:DJI | DOW JONES AVERAGES | 43870.35 | +461.88 | +1.06% |
| SP500 | S&P 500 | 5948.71 | +31.60 | +0.53% |
| I:COMP | NASDAQ COMPOSITE INDEX | 18972.420086 | +6.28 | +0.03% |
Besides GE and Dow component Boeing leading the sector lower, Southwest Airlines stock declined after Raymond James analysts issued a warning about the short-term effect of 737 Max jets being grounded worldwide.
Tech shares posted gains. Symantec and PayPal rose, helping lift the tech-heavy Nasdaq Composite into positive territory in afternoon trading -- and a 2019 high.
Pinterest set its IPO price range below its most recent valuation. Pinterest set a price range of $15 to $17 for its initial public offering a range that is below where it last raised money privately, as the image-search company is set to begin its roadshow to pitch the shares to investors Monday.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| GE | GE AEROSPACE | 178.70 | +0.72 | +0.40% |
| BA | THE BOEING CO. | 143.41 | -2.67 | -1.83% |
| SYMC | NO DATA AVAILABLE | - | - | - |
| PYPL | PAYPAL HOLDINGS INC. | 84.82 | +0.08 | +0.09% |
Meanwhile, investors braced for what could be a tough first-quarter earnings season. FedEx, Walgreens Boots Alliance and Apple -- among other corporations -- cut their profit forecasts for the January-March period.
Crude oil prices rose to a five-month high, boosted by expectations that global supplies would tighten due to fighting in Libya, OPEC-led cuts and U.S. sanctions against Iran and Venezuela.
In China, the Shanghai Composite closed fractionally lower to 3,2441.81, the Hong Kong Hang Seng added 0.47 percent and Japan's Nikkei 225 slipped 0.21 percent.
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Britain's FTSE 100 was up 0.04 percent, France's CAC 40 edged higher by 0.05 percent and Germany's DAX fell 0.24 percent.