Dow Ends Lower on Boeing Weakness; Wall Street Awaits Trump-Xi Meeting
Here Are 3 Hot Things to Know About Stocks Right Now
- The Dow Jones Industrial Average ended down as investors contended with yet another issue with Boeing’s (BA) troubled 737 MAX jet, and Wall Street looked ahead to a meeting of President Donald Trump and China’s Xi Jinping.
- Boeing shares fell after the Federal Aviation Administration said it found yet another issue with the aerospace giant’s 737 MAX software that could further delay the plane’s return to service. Boeing is Real Money’s Stock of the Day.
- Walgreens Boots Alliance (WBA) gained after the company posted stronger-than-expected third-quarter earnings and confirmed full-year profit guidance.
Wall Street Overview
Stocks ended mixed Thursday as investors contended with yet another issue with Boeing’s (BA) troubled 737 MAX jet and looked ahead to a meeting of President Donald Trump and China’s Xi Jinping a the G-20 summit in Japan.
The Dow Jones Industrial Average ended down 10 points, or 0.04% to 26,527. The S&P 500 broke its four-day losing streak and rose 0.38%. The Nasdaq climbed 0.73%.
Trump arrived in Osaka, Japan on Thursday and is set to meet Xi on the sidelines of the G-20 summit at 10:30 p.m. ET on Friday.
The Wall Street Journal reported that the Chinese leader will present terms for settling the year-long trade dispute, but noted that he will demand an end to the U.S. blacklisting of Huawei Technologies, drop efforts to get China to buy more American exports, and lift punitive tariffs on U.S.-bound exports.
Boeing (BA) shares fell 2.4% to $363.93 after the U.S. Federal Aviation Administration said it found yet another issue with the aerospace giant’s 737 MAX software that could further delays to its return to service. Boeing, the Dow’s worst performer, is Real Money’s Stock of the Day.
Ford (F) shares advanced 2.9% to $10.20 after the automaker unveiled plans to slash more than 12,000 jobs across its European operations by the end of next year as it ongoing restructuring plan aimed at returning the automaker to profit.
HealthEquity (HQY) surged 5% to $65.27 after the health-savings account provider said it will acquire employee benefits administrator WageWorks (WAGE) in an all-cash deal valued at just more than $2 billion. WageWorks slipped 1.4% to $50.91.
U.S. gross domestic product increased at a 3.1% annualized rate, the government said in its third reading of first-quarter GDP. That was unchanged from its estimate last month. The economy grew at a 2.2% pace in the October-December period.
Jobless claims rose by 10,000 to 227,000 in the week ended June 22, the Labor Department said. The four-week average increased to 221,250, the highest in more than a month. Economists had expected claims to rise to 200,000 this week.
“The final reading of the U.S. GDP for the first-quarter held steady at 3.1%, which wasn’t a surprise,” said David Madden, a market analyst at CMC Markets UK. “The jobless rate jumped by 10,000 to 227,000, which exceeded the forecast of 220,000.”
Madden added that “some traders might view this as a sign that the U.S. labor market is a little weaker, but keep in mind the reading of 192,000 in April was the lowest since 1969. The US economy is still in good shape, and some traders are getting ahead of themselves in terms of possible interest rate cuts from the Federal Reserve.”