Boeing's Dreamliner Nightmare Holds Back the Dow
Jan 16th 2013 3:30PM
Updated Jan 17th 2013 11:20AM
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.
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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.Fool contributor Travis Hoium has no position in any stocks mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw. The Motley Fool recommends Goldman Sachs. The Motley Fool owns shares of JPMorgan Chase & Co. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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