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Published: January 8, 2024 at 7:25am ET
The plunge in Boeing’s stock isn’t the only reason the Dow Jones Industrial Average is heading lower, but it’s one of the main reasons the index has underperformed other broad market barometers.
Boeing Co. stock BA fell 7.9% in premarket trading Monday after a panel erupted from Alaska Airlines Group’s ALK plane last weekend, grounding Boeing Co.’s 737-9 Max planes.
that…
The plunge in Boeing’s stock isn’t the only reason the Dow Jones Industrial Average is heading lower, but it’s one of the main reasons the index has underperformed other broad market barometers.
boeing stock
BA
The airline fell 7.9% in premarket trading Monday after Alaska Air Group’s panels were blown and the aerospace giant’s 737-9 Max planes were grounded.
alk
Weekend flight.
That put the stock on track to start at a six-week low and put it on pace for its worst single-day performance since an 8.8% drop on Oct. 26, 2022, when the company announced earnings that fell short of analysts’ expectations. .
Please also read:Alaska Airlines and United have grounded their Boeing 737 Max 9 jetliner following an explosion on board.
The implied price decline before the move would be about 129 points off the Dow’s DJIA price.dow futures
YM00
Futures fell 164 points, or 0.4%.
ES00
The S&P 500 index SPX fell 0.1%, with futures
NQ00
The Nasdaq 100 NDX was down less than 0.1%.
The Dow Jones Industrial Average is a price-weighted index. In other words, stocks with higher stock prices have a greater impact on the index price than stocks with lower stock prices. In contrast, the S&P 500 and Nasdaq indexes are weighted by market capitalization. In other words, the higher the market value of a company, the more influence it has on the price of the index.
Based on Boeing’s closing price of $249.00 on Friday, Boeing stock is the 10th most influential stock in the Dow. The most influential is UnitedHealth Group Inc. stock.
UNH
,
Friday’s closing price was $537.38. The stock with the least influence is Walgreens Boots Alliance, Inc.
W.B.A.
,
The closing price was $25.01.
With a market capitalization of about $150.6 billion as of Friday’s close, Boeing stock is the 52nd most expensive stock in the S&P 500.
For every $1 move in Dow stock, the index moves just under 7 points. However, a 1% increase in UnitedHealth’s stock price would increase the Dow by more than 35 points, while a 1% increase in Walgreens’ stock price would have an impact of just under 2 points. A 1% rise in Boeing stock moves the Dow Jones Industrial Average by more than 16 points.
Meanwhile, Alaska Airlines’ stock is a component of the Dow Jones Transportation Average DJT, which is price-weighted like the Dow Jones Industrial Average, but uses a different calculation. Alaska Airlines stock was down 4.7% in early trading Monday, which would reduce Dow Air’s stock by about 11 points.
Shares of Spirit Aerosystems Holdings, Inc.
SPR
Although they fell 18.1% premarket, they are not components of the Dow or S&P 500.
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