After Market: Boeing Leads Stocks Lower on a Complex Day

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Stocks fell on Wednesday. Yes, you read that right: It was the first serious sell-off in three weeks.

We can point to several factors that drove the market lower, including a World Bank report lowering its forecast for global growth. There's also the fall of several major cities in Iraq to al-Quida aligned forces, the shocking primary loss of House Majority Leader Eric Cantor (R-Va.), and good old-fashioned profit taking after several days of record highs.

The Dow Jones industrial average (^DJI) fell 102 points, the Standard & Poor's 500 index (^GPSC) lost nearly 7, and the Nasdaq composite (^IXIC) dropped 6 points.

The biggest loser among the Dow stocks was Boeing (BA), down more than 2 percent after a downgrade by RBC Capital. Boeing was one of the Dow's best gainers in 2013, but so far this year, is slightly in the red.

Airline stocks moved broadly lower, hurt by an earnings warning from the German carrier Lufthansa, and concern that its problems could spread across the Atlantic. United-Continental (UAL) fell 5 percent, while American (AAL) and Delta (DAL) both lost 3 percent.

After you get off the plane, you often check into the hotel -- and those didn't do too well Wednesday either.

Hilton (HLT) fell 2½ percent after Blackstone Group (BX) said it will sell more than 100 million shares, though it will still maintain a majority stake in Hilton.

And Marriott (MAR) fell 1½ percent on a ratings downgrade to "neutral" by Macquarie Capital.

But some semiconductor stocks bucked the downtrend. Rambus (RMBS) jumped 5 percent as it raised its sales outlook. The stock is up more than 60 percent over the past year.

Micron (MU) rose 5 percent and Sandisk (SNDK) gained 2½ percent, as Merrill Lynch (BAC) upped its rating on both to "buy." Marvell Technology (MRVL) gained 2 percent on a Nomura Securities upgrade.

Elsewhere, H&R Block (HRB) rose 4½ and Ulta Salons (ULTA) jumped 14 percent. Both topped earnings expectations.

Anadarko Petroleum (APC) gained 4 percent. There was a lot of social media chatter that the company could become a takeover target.

And Orexigen Therapeutics (OREX) tumbled 15 percent as the FDA delayed ruling on the company's obesity drug for another three months.

What to Watch Thursday:
  • Lululemon Athletica (LULU) is scheduled to release quarterly financial results before markets open in New York.
  • The Commerce Department releases retail sales data for May, and the Labor Department releases weekly jobless claims, and import and export prices for May -- all at 8:30 a.m. Eastern time.
  • At 10 a.m., Freddie Mac releases weekly mortgage rates, and the Commerce Department releases business inventories for April.
-Produced by Drew Trachtenberg.

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21 Comments

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thac396174

Many airlines are not replacing there exist Boeing aircraft, since Boeing CEO James McNerney, and GE CEO Jeff" Immelt are member of the board on the Import-Export Bank, that made better loan to foreign airlines at a lower interest rate

Delta and other Airline Group have file law suits against the U.S. Export-Import Bank over Air India Loan Guarantees
http://bloom.bg/19EVNoT-

Delta CEO prefers stability over flash in airplane fleet
http://bit.ly/1fRvAoZ

JAL lines, Delta Air Lines, British Airways, Singapore Airlines, Lion Air, American Airlines, Mexican budget airline VivaAerobus , Air China, Philippine Air, Vietnam's VietJet, ANA (Discussions for A-350 Orders) are now ordering from Airbus
Air India and Jet air has decided to sell five out of its eight Boeing 777-200 aircraft owing to changes in market dynamics due to the Global recession, steep increase in fuel prices and poor yields on non-stop routes, and the 777-200 being a gas Guzzler
http://bit.ly/1fRvz4B
The A350 is in production, in flight test, as flown at the Airshow in 2013 and 2014 and will be delivery in 2015
the 777-X, 787-10 and 737MAx is still on the drawing board and may be delivery in 2020.

Many of Boeing military programs and its partners program are ending
the Douglas C-17, Kc-10A, Northrop F/A-18 E& F, EA-18G, McDonnell F-15, the Rockwell-NAAO Space Shuttle; F-22 Lockheed -Boeing and Sea launch have ended
that make up half of Boeing of Boeing profit

Will Boeing stock price fall by 50% when these programs end or go up another 50%

Boeing Cash Cow | Leeham News and Comment
leehamnews.com/tag/boeing-cash-cow/

June 12 2014 at 4:56 PM Report abuse rate up rate down Reply
k4jlp

Poor poor Cantor. I told you he was an embarrasment to my Commonwealth. You think thats something, just wait. the patience of the American people has come TO AN END.

June 12 2014 at 6:07 AM Report abuse rate up rate down Reply
k4jlp

Wow, a sell off to reap profits...now there's a news flash.....

June 12 2014 at 6:05 AM Report abuse rate up rate down Reply
teaparty2implode

In Denmark, more than 75 percent of the people are members of trade unions. In America today, as a result of the political and economic power of corporate America and the billionaire class, we are seeing a sustained and brutal attack against the economic well-being of the American worker. As the middle class disappears, benefits and guarantees that workers have secured over the last century are now on the chopping block. Republicans, and too many Democrats, are supporting cuts in Social Security, Medicare, Medicaid, nutrition, education, and other basic needs -- at the same time as the very rich become much richer. Workers' rights, the ability to organize unions, and the very existence of the National Labor Relations Board (NLRB) are now under massive assault.

June 12 2014 at 12:27 AM Report abuse -1 rate up rate down Reply
1 reply to teaparty2implode's comment
teaparty2implode

Hey dopey DF,....next you will tell me Denmark isn't a socialist country.

June 12 2014 at 12:37 AM Report abuse -1 rate up rate down Reply
teaparty2implode

dopey.obamite

Idiot. Having a majority of people in unions does not define whether a country is socialist.....one of the dumbest thing you've ever posted...and you've posted plentt o' dumbness.

))))))))))))))))))))))))))))))))))))))))))))))))))

High percentage of workers belonging to a labour union. In 2010, labour union density was 69.9% in Finland, 68.3% in Sweden, and 54.8% in Norway. In comparison, labour union density was 12.9% in Mexico and 11.3% in the United States.

http://en.wikipedia.org/wiki/Nordic_model

There dopey DF,.....I even left you a link, ya dumbazz.

June 12 2014 at 12:17 AM Report abuse -2 rate up rate down Reply
Iselin007

The only ones making out from these scam retraining courses are the for profit schools, meal ticket teachers, and investor groups not the retrainees.

June 11 2014 at 11:00 PM Report abuse -1 rate up rate down Reply
Iselin007

Older workers need to re-employed not fed a song and dance about retraining for jobs that either don't exist or not going to be available to them. Take your crap scam some where else!

June 11 2014 at 10:52 PM Report abuse rate up rate down Reply
Iselin007

They ought to remploym people befire they do dumb stuff like trade deals and cap and trade. If the government had to guarantee replacement jobs most of this job killing legislation would end up in the waste basket.

June 11 2014 at 10:21 PM Report abuse -1 rate up rate down Reply
Leroy Gd

Thanks to the numb nut lefty liberals who put our liar in chief in office, twice, our economy is in the toilet, dispite what the excrement pushers like huff puff/aol will try to lie to us. obama's every move is designed to destroy this once great country. Take your pick, letting illegals move in and rob the tax payers and take away jobs, put the squeeze on oil, gas and coal production to send fuel and food prices skyrocketing, obamacare which has made us a nation of part time workers who must subsidize those who chose to be dead beats. Great work numb nuts i'm sure your children will thank you for helping to make the United States a socialist country where all are equally poor and miserable, that is unless they are as brain dead as you are.

June 11 2014 at 8:55 PM Report abuse rate up rate down Reply
2 replies to Leroy Gd's comment
elendil3136

Gee, I'm sorry that your coal futures have taken such a hit, but don't you think that dealing with Climate Change is important?

Maybe if you actually read the news in more detail, you would know that the recent rise is food costs is led by skyrocketing hog prices due to disease ravaging southern hog farms, and western ranchers having to thin their herds due to lack of rainfall because of Climate Change.

Get informed, then talk.

June 11 2014 at 9:51 PM Report abuse +1 rate up rate down Reply
2 replies to elendil3136's comment
dave

climate change aint happening

June 11 2014 at 10:10 PM Report abuse rate up rate down
Iselin007

I heard farmers were cutting feed costs by cutting cattle.

June 11 2014 at 10:14 PM Report abuse rate up rate down
teaparty2implode

We are far from being a socialist country you misinformed fool. Socialist countries a majority of their citizens belong to a Union. I hope you enjoy paying (Corporate Welfare) subsidies for big oil companies because the Republicans want to keep them in place even though big oil companies are making record profits. It was Obama and the democrats who wanted to get rid of them but the TPGOP blocked it. You must have been born yesterday it was Bush and the Repukes who destroyed our economy when it collapsed in 2008. You need to check your tin foil hat because it's cutting off blood supply to your brain.

June 11 2014 at 9:56 PM Report abuse -1 rate up rate down Reply
thefacts22

Usa is in the verge of economic collapse,we are now "growing negative"....Thanks oba for your socialist policies

June 11 2014 at 8:16 PM Report abuse +2 rate up rate down Reply
3 replies to thefacts22's comment