Boeing alongside other prominent industrial names General Electric Co. (GE) - Get General Electric Company (GE) Report and Caterpillar (CAT) - Get Caterpillar Inc. Report some, all fell during afternoon trading on Friday, Feb. 2, as Dow Jones Industrial Average plunged 665 points while bond yields spiked causing concerns about faster inflation.
Shares of the world's largest aerospace company, Boeing, dropped 2.25% to close at $348.90 on Friday. The decline comes after the Chicago-based company reported a blowout quarter and upbeat guidance for 2018.
Caterpillar stock tumbled about 3% to finish the day at $157.43. The construction equipment supplier recently crushed analysts' expectations for its fiscal fourth-quarter, but Wall Street still expects more from Caterpillar.
General Electric stock fell 2.4% to close at $15.63; shares have declined 10% year-to-date. GE, which has been a component of the Dow for more than 110 years, could be dropped from the index due to its recent poor performance, according to Deutsche Bank.
Meanwhile, the Fidelity MSCI Industrials ETF (FIDU) - Get Fidelity MSCI Industrials Index ETF Report , which holds Boeing, GE and Caterpillar along with other industrial stocks, dropped 2.1% to $39.71 on Friday.
To be sure, the prospects for General Electric haven't been great over the past year as struggles in its energy business have led to steep share losses and a company-wide restructuring.
"We believe the chances that GE could be removed from the Dow are increasing as GE continues to face substantial challenges including earnings and cash pressure, tough global power generation markets, aggressive downsizing, shrinking its portfolio, management shake-up and SEC investigations," Deutsche Bank analyst John Inch wrote in a Jan. 31 research note.
Here comes the correction? TheStreet's CEO David Callaway and Sr. Markets editor Greg Morcroft discuss.
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