The market opened lower, this week, with major Dow component Boeing dragging its sector on the heels of an announcement of plans to slow production of its flagship airplane. Actually, Boeing announced it would likely cut production of its popular 737 Max airplanes—by as much as 20 percent—after two deadly crashes were featured on the news. As such, Boeing will begin slowing production by mid-April, from 52 per month to 42. Of course, this also means that Boeing suppliers are going to feel the hit.
And to be certain about this impact: this is the first time Boeing has slowed production of its flagship 737 Max since the 9/11 terrorist attacks, in 2001.
With that, Bank of America Merrill Lynch downgraded Boeing’s stock from buy to neutral, lowering its price target from 480 to 420. Overall, the Dow fell nearly 114 points—about 0.43 percent—after Boeing fell 4 percent, in the morning.
But the Dow Jones Index was not the only one to drop. While it opened the day down 0.6 percent before resetting a little, both the Nasdaq and the Stanard & Poors 500 also fell about the same amount. This is unfortunate as it starts to reset the 2.7 percent gain the Nasdaq posted on Friday, to close out quite a solid week, on its way to an all-time high of 8,133 (set in late August).
All of this, though, might also have bearings founded in the US-Chine trade negotiations stalemate. The two countries have been on their way to reaching a new trade agreement but these negotiations are now on hold with US President Donald Trump and Chinese Vice Premier Liu He no longer scheduling to meet. Indeed, there is still more to be done, in this regard.
Finally, investors are, overall, shifting their focus towards corporate earnings this week. Truly, a few big banks will open their earnings seasons on Friday so those who participate in the market should be able to expect earnings reports from big firms like Delta Airlines (DAL) on Wednesday as well as JPMorgan Chase (JPM) and Wells Fargo Bank (WFC) on Friday.