Boeing Suffers Descent, But Will It Last?

Market-leading large-cap Boeing Co (NYSE: BA) suffered a blow Thursday and has been dealt a difficult week. Many traders are wondering if they should continue to bank on Boeing while others believe this wide spread panic is just easy headlines.

According to Investor Place, “Despite this week’s turbulence, BA is still cruising above the rising 20-week moving average, and there’s a chance that support at $317 could save the short-term uptrend. However, bearish signs are beginning to mount.”

The Boeing shares are pulling or pushing against the Dow Jones Index. With it being one of the largest holdings, when Boeing falls the whole index gets dragged down. However, Boeing is just one part of the index and the other parts of the index are still strengthening.

Seeking Alpha reports, “If we look at how share prices have developed since Trump announced his plans for tariffs on steel and aluminum, then we see that shares are down only slightly more than 5 percent. Honestly, if it wasn’t for the weight of Boeing and/or the fact that the lower share prices are sparked by a plan of the President and in particular Trump, you would not have heard a single thing about this”

Boeing reported that it delivered a record 763 aircraft in 2017 and it expects to deliver between 810 and 815 aircraft in 2018. However, many investors fear  U.S. steel and aluminum tariffs could raise costs and hurt their ability to meet those goals.

As The Wall Street Journal’s Morning MoneyBeat newsletter noted, “this week’s decline illustrates investor concerns that U.S. protectionism could start the world down an unhappy path that in the worst scenario could threaten the sanguine global economic backdrop that has supported companies like Boeing and Caterpillar.”

Let’s take a look at ETFs holding significant Boeing exposure and how they did today according to Yahoo Finance at 3 p.m. Eastern Time.

ETFs Holding Significant Boeing Exposure

  • iShares US Aerospace & Defense ETF (ITA) with a 11.49% weight down .31%.
  • SPDR Dow Jones Industrial Average ETF (DIA) with a 9.12% weight up .44 %.
  • Industrial Select Sector SPDR ETF (XLI) with a 7.74% weight up .5 %.

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