Summary:
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US30 moves back into the green after early declines
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Index boosted by BA earnings
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US30 in danger of lagging US500 for 1st time in 4 years
The latest set of earnings results from the US have boosted the Dow Jones Industrial Average (US30 on xStation), with two of the benchmarks largest-weighted stocks reporting ahead of the opening bell. The index had earlier slid to its lowest level in almost 2 weeks below 26,600 but has since recovered after Boeing and Caterpillar reported their figures for the third quarter.
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Today’s session could be pivotal for the Dow going forward, with lows around 26585 seen as potentially key support. Should this hold then a move back up to the 27000 region could occur and with price in between the 8 and 21 EMAs there is a feeling that whichever way we go from here could be the start of the next trend. Source: xStation
These two stocks account for comfortably more than 10% of the broader index due to the price-weighted nature with Boeing alone having a weighting of more than 8%. The poor performance of these shares so far in 2019 go some way to explaining the Dow’s underperformance compared to the S&P500 (US500 on xStation) with Boeing being a particular laggard. The aerospace firm’s stock has experienced a double-digit drop over the past 6 months as issues surrounding it 737 Max jet has shaved approximately 370 points of the broader index.
The DJIA has outperformed the S&P500 in each of the past 4 years, but so far in 2019 is lagging behind. Source: FactSet
Boeing stock to gain
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EPS: $1.45 vs $2.09 expected (Refintiv)
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Revenue: $19.98B vs $19.67B expected (Refinitiv)
This represents a 5-0% slide in profits and 20% drop in turnover. However, a miss in earnings here has seemingly been outdone by some positive remarks on the 737 Max, with the aerospace giant assuming a return to service in the fourth quarter of 2019. Given the recent backdrop and the dour newsflow around Boeing for much of the year, this is seen as a clear positive and the stock is trading higher in the premarket.
Boeing investors have had a trying year but the stock is called to begin higher this afternoon on hopes of a return to service for the trouble 737 MAX jets this quarter. This has seemingly outweighed a disappointing set of results with both profits and revenue falling in Q3. Source: xStation
