Dow Jones Today: Boeing Drags on Dow; Bitcoin Tops $45K Ahead ...
Stocks were mixed midday Monday as tech got a reprieve from last week's sell-off while the Dow came under pressure from Boeing.
The Nasdaq Composite traded 1.2% higher Monday afternoon while the S&P 500 gained 0.6% and the Dow Jones Industrial Average slipped 0.2%.
Shares of Boeing (BA) plunged Monday after the Federal Aviation Administration over the weekend ordered U.S. airlines to ground more than 170 of their Boeing 737 Max 9 jets. An Alaska Airlines flight on Friday made an emergency landing after part of the Max 9's fuselage detached mid-flight. Shares of major airlines were also lower.
Bitcoin climbed above $45,000 as investors awaited the Securities and Exchange Commission's decision on a spot Bitcoin ETF. That decision is due by Wednesday.
Investors this week will get December inflation data, which is expected to show core inflation slowing while headline inflation ticks up. Plus, big banks JPMorgan Chase (JPM), Bank of America (BAC), and Wells Fargo (WFC) kick off earnings season when they report on Friday.
Stocks snapped a 9-week winning streak last week amid a sell-off that hit 2023's highest-flying tech stocks particularly hard.
Boeing Shares Plummet After FAA Grounds 737 MAX 9 Fleet
36 minutes ago
Boeing (BA) shares tumbled in early trading Monday after the Federal Aviation Administration (FAA) temporarily grounded certain Boeing 737 MAX 9 aircraft for inspections.
The FAA's directive comes after an incident Friday in which an Alaska Airlines (ALK) Max 9 lost a panel mid-flight, forcing an emergency landing. About 171 Boeing aircraft in the U.S. or operated by U.S. airlines outside the U.S. are impacted by the FAA's investigation to address potential door safety issues before resuming flights.
"We agree with and fully support the FAA's decision to require immediate inspections of 737-9 airplanes with the same configuration as the affected airplane," Boeing said in a statement.
Shares of Boeing were down 6.8% at $232 per share midday Monday but remained up about 13% in the last year.
-Fatima Attarwala
Crocs Shares Jump on Record Sales Forecast
1 hr 24 min ago
Shares of Crocs (CROX) jumped 20% Monday morning after the casual shoemaker said full-year sales would exceed its prior guidance after a strong holiday season.
The company said in a statement that it expects sales to grow 1% year-over-year in the fourth quarter, surpassing its November forecast of sales declining between 1% and 4%.
Subsequently, the company estimated that full-year sales would total about $3.95 billion, a record and a more than 11% increase year-over-year. The company had previously forecast full-year sales growth of between 10% and 11%.
Despite Monday’s gains, Crocs shares have lost about 8% of their value in the last year and remain well off their record high of about $180.
One Chart to Watch Monday: Berkshire Hathaway
2 hr 20 min ago
Warren Buffet-run Berkshire Hathaway (BRK.B) may appear on watchlists Monday after the multinational conglomerate settled a billion-dollar lawsuit with the Haslam family over a truck stop company.
A trial scheduled to commence today in Delaware was to determine if Berkshire Hathaway had used pushdown accounting methods to significantly reduce the value it would have to pay for the family’s remaining 20% stake in Pilot Travel Centers (PTC), the largest truck-stop operator in the U.S. Berkshire had alleged that Cleveland Browns owner Jimmy Haslam enticed senior PTC executives with side payments to inflate the value of the company to receive a more attractive buyout from the financial conglomerate.
Berkshire has been increasing its stake in PTC from the Haslam family since 2017, taking majority ownership of the company in January last year.
Source: TradingView.com.Berkshire Hathaway shares trended mostly higher throughout 2023 apart from several retracements to the 200-day moving average. Currently, the stock trades between a 15-month uptrend line and its all-time high (ATH). If the price moves higher from current levels, monitor how it responds to the ATH around $373. Conversely, during retracements, keep an eye out if buyers can defend the uptrend line and 200-day moving average, currently sitting near $351.
See here for more charts to watch today.
-Timothy Smith
Stocks Making the Biggest Moves Premarket
3 hr 11 min ago
Gains:
Crocs Inc. (CROX): Shares of the shoemaker jumped 8% after it said it expected revenue in 2023 to total $3.95 billion, a record and more than analysts estimated. DoorDash Inc. (DASH): Shares of the meal delivery service rose more than 3% after Jefferies upgraded the stock to “buy” from “hold,” citing cost controls and its strong market position. Dell Technologies Inc. (DELL): Shares of the computer hardware maker rose 2% after analysts at JPMorgan upgraded to stock to “overweight,” citing the likelihood the company’s server business will benefit from AI investment.Losses:
Boeing Co. (BA): Shares of the aircraft maker fell more than 7% after U.S. regulators grounded more than 170 of its 737 Max 9 jets following an incident in which part of an Alaska Airlines plane’s fuselage detached mid-flight. Shares of its supplier Spirit AeroSystems (SPR) tumbled 14%. Regeneron Pharmaceuticals Inc. (REGN): Shares of the drugmaker fell more than 2% after it said it sold $1.34 billion of its blockbuster eye drug Eylea in the fourth quarter, nearly $200 million less than Wall Street expected. ExxonMobil Corp. (XOM): The oil giant’s shares fell more than 1% as oil prices tumbled in early trading.Futures Mixed as Boeing Drags on the Dow
3 hr 55 min ago
Futures contracts connected to the Dow Jones Industrial Average were more than 0.3% lower in premarket trading on Monday, weighed down by Boeing.
S&P 500 futures were little changed about an hour before markets opened.
Nasdaq 100 ticked up about 0.2%.
