As much as investors would like to see faster economic growth, the signs that often accompany that growth just aren't appearing. With the U.S. Consumer Price Index staying flat in December, it's clear that the inflationary pressures typical of a thriving economy aren't there, and although sentiment in the housing industry stayed relatively strong, the market was unable to overcome fears that the slow recovery might stall out. By 10:45 a.m. EST, the Dow Jones Industrials were down about 35 points.
Among Dow stocks, Boeing once again hit the skids, falling 3.3% on yet another report of a problem with its 787 Dreamliner aircraft. This time, Japan Airlines and compatriot All Nippon Airways grounded their Dreamliner fleet following a flight during which ANA pilots received warnings of battery problems and reported smelling smoke. With the FAA already reviewing the plane's safety, Boeing can't seem to stop the flow of bad news. Even though such problems are common with new aircraft models, at some point, media attention could drive consumers to become fearful of the planes, and that could pose a game-changing problem for Boeing.
Outside the Dow, Chipotle Mexican Grill plunged 5.4% after warning that its fourth-quarter earnings would come in below consensus estimates. Although the restaurateur said revenue would beat expectations with same-store sales up 3.8%, higher food costs have weighed on profits. With analysts uncertain about Chipotle's ability to raise menu prices in a tough economy, the eatery might have to accept lower margins as a result.
Finally, Genworth Financial soared 11% after announcing plans to protect its overall business from the potential negative impacts of its mortgage guaranty subsidiary. Genworth has tried to divest itself of its mortgage insurance business for a while, as the unit has sapped huge amounts of capital and raised the possibility of a bond-rating downgrade that would take away Genworth's investment-grade status.
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The article Why the Dow's Flying Lower This Morning originally appeared on Fool.com.Fool contributor Dan Caplinger has no position in any stocks mentioned. You can follow him on Twitter @DanCaplinger. The Motley Fool recommends Chipotle Mexican Grill. The Motley Fool owns shares of Chipotle Mexican Grill. 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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