Boeing's Dreamliner Nightmare Holds Back the Dow
Most of the stocks in the Dow Jones Industrial Average have muddled along in a quiet trading session today, but Boeing is dragging the entire index south by 0.17% in another difficult day for the stock.
Boeing is down 3.9% today after more problems caused half of its 787 Dreamliner fleet to be grounded. Last week Boeing lost ground because of two issues on Japan Air 787s, but when Boeing investigated further, the issues appeared to be relatively minor. New aircraft often experience minor issues as kinks are worked out, but these problems subside as owners and manufacturers gain more experience. That was the hope for Boeing after last week's incidents, but today the 787 hit a new low.
An All Nippon Airways flight from Tokyo made an emergency landing in Japan after a battery warning light went off and crew members smelled smoke. Japan Air and ANA have grounded all 24 of the 787s they collectively own -- that's half of the 49 aircraft currently in use. Boeing now has the U.S. FAA and Japanese regulators looking into the aircraft, and airlines want answers. Nothing good can come of these issues, and investors should now be worried that more delays and costly repairs are in the works for the all-important 787 Dreamliner.
With great opportunity comes great responsibility. For Boeing, which is a major player in a multitrillion-dollar market, the opportunity is massive. However, the company's execution problems and emerging competitors have investors wondering whether Boeing will live up to its shareholder responsibilities. In this premium research report, two of The Fool's best industrial-sector minds have collaborated to provide investors with the must-know info on Boeing. They'll update the report as key news hits, so be sure to claim a copy today by clicking here now.
The other big news out today is earnings from JPMorgan and Goldman Sachs , two of the largest banks on Wall Street. Both companies reported strong earnings, setting the stage for a good quarter across the banking industry. JPMorgan reported a 53% jump in earnings to $5.69 billion, and Goldman's net income rose 185% to $2.83 billion. JPMorgan's stock only gained 0.6% on the news, but Goldman's shares are up 4.1% on the day, and this may be the start of a rally for banking stocks.
The article Boeing's Dreamliner Nightmare Holds Back the Dow originally appeared on Fool.com.
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