Stocks Fall, Dow Slumps as Boeing Sinks on Downgrade

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  • The Dow Jones Industrial Average fell Monday, getting pulled down by Boeing (BA – Get Report) after the planemaker was downgraded and said it would slow production of its troubled 737 MAX aircraft following two fatal accidents.
  • General Electric (GE – Get Report) tumbled after the stock was downgraded by JPMorgan to underweight from neutral.
  • Micron (MU – Get Report). After analysis at Cowen downgraded the company 's stock to market performance from outperform.

Wall Street Overview

Stocks were dragged down Monday by Boeing (BA – Get Report) and General Electric (GE – Get Report) and concerns about earnings reports.

The Dow Jones Industrial Average fell 140 points, 0.53% gold, 26.284, the S & P 500 declined 0.23%, and the Nasdaq was down 0.20%.

About eight S & P 500 companies are set to report this week, including three of the country's biggest banks on Friday. Refinitiv estimated that first-quarter profits for the S & P 500 is likely to fall by 2.2% from the first three months of 2018, with revenue sliding by around 5%.

TheStreet.com's Jim Cramer, noting media warnings of an earnings season slowdown, said things can not be said to be bad. He advised investors to focus on the fundamentals.

"Cramer said" There's a big disconnect between stocks and their fundamentals right now, which tells you something else – or more specifically, many other things are hard at work here.

In economic news, the U.S. Commerce Department said factory goods orders dropped 0.5%, pulled down by weak orders for machinery, transportation equipment and computers and electronic products. Data for January was revised to show factory orders unchanged instead of 0.1% as previously reported.

"The S & P 500 and NASDAQ 100 are a little lower (Monday) as traders lock in some positive run," said David Madden, a market analyst at CMC Markets UK "The February factory orders report showed at 0.5% decline , while economists were expecting a drop of 0.6%, but the report was revised to a lesser extent.

"This is said to be one of the most important factors in the economy," said Chris Larkin, senior vice president for trading at E * Trade. "Let's not forget it's been a really strong start to the year, with all major indexes we have a tear with double-digit returns, a far cry from how we end up 2018."

Shares of Boeing sank 4.7% to $ 373.42 after Bank of America Merrill Lynch cut its rating on the planemaker from neutral to buy Boeing would slow production of its troubled 737 MAX aircraft following two fatal accidents that have raised serious concerns for the aircraft's safety. Boeing cut 737 production by 20% to 42 units per month, starting around the middle of April.

Southwest Airlines (LUV – Get Report), which has more than 8 US carriers, dropped 2.8% to $ 51.75 after Raymond James.

General Electric shares fell 8.2% to $ 9.19 after JPMorgan analyst Stephen Tusa, has long-time criticism of GE's business model, lowered its rating for the industrial giant to underweight from $ 1. to $ 5 a share.

Micron (MU – Get Report) fell 1.4% to $ 42.71 after analysts at Cowen downgraded the stock to market outperform while also lowering their price target to $ 45 from $ 46 per share. Analyst Karl Ackerman comments that it is likely that Micron's profitability will decline again in calendar 2020.

Online image-search company Pinterest said it would sell 75 million shares in its initial public offering at a price of $ 15 to $ 17 a share. The company, which begins its roadshow on Monday, is expected to appear on the New York Stock Exchange next week under the symbol "PINS."

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