Here Are 3 Hot Things to Know About Stocks Right Now
- The Dow Jones Industrial Average closed lower following Boeing's (BA) slide when several countries grounded the company's 737 MAX 8 after the plane model's second fatal crash in six months.
- Stitch Fix (SFIX) jumped after the subscription fashion service topped analysts' earnings and sales forecast in its fiscal second quarter, and issued a strong third-quarter outlook. Shares rose 25.2% to $33.78.
Wall Street Overview
Stocks were mixed Tuesday as the three major stock indexes weighed concerns over Boeing (BA) following the second fatal crash of the planemaker's 737 MAX 8 aircraft in six months.
Shares of Boeing were down 6.13% to $375.47.
The Dow Jones Industrial Average finished down 96.22 points, or 0.38%, to 25,554, while the S&P 500 rose 0.30% and the Nasdaq was up 0.44%.
The United Kingdom, Singapore and Australia have joined China and other countries in banning the Boeing 737 MAX 8 from landing and taking off from their airports following Sunday's fatal crash of one of the aircraft in Ethiopia. It was the second fatal crash of the recently introduced model in six months.
Nearly 40% of the in-service fleet of 371 Boeing 737 MAX jets globally has been grounded, according to industry publication Flightglobal, including 97 jets in China, the biggest market, Reuters reported. The USA is the second largest MAX market, with 72 aircraft in service, Flightglobal reported. U.S. Senators Dianne Feinstein, D-CA, and Richard Blumenthal, D-CT, called for all Boeing 737 MAX 8 planes to be grounded until the aircraft's safety could be ensured. The Federal Aviation Administration issued a certificate of continued airworthiness for the planes late Monday.
Consumer prices in the U.S. rose 0.2% in February, driven by increases in costs for food, shelter and gasoline, the Labor Department's Bureau of Labor Statistics said. Economists had estimated a 0.2% increase for the month, and 1.6% over the past year. Excluding food and energy items, whose prices can be volatile, the consumer price index rose by 0.1%, a slowdown from January's 0.2% increase. Economists had projected a 0.2% increase for February.
"It is a little worrying that headline inflation dropped to a level not seen in over two years," said David Madden, a market analyst at CMC Markets UK. "The slip in core CPI also suggests that underlying demand is weakening too. These figures must be taken in the context of last week's jobs report, whereby average earnings edged up to 3.4% ,and it is clear that American workers are getting a nice increase in real wages."
U.S. Trade Representative Robert Lighthizer told the Senate Finance Committee Tuesday that the U.S. and China are "in the final weeks of having an agreement" that would end the trade conflict between the world's two largest economies, but added that there were still major issues that needed to be resolved.
U.K. Prime Minister Theresa May suffered another Parliamentary defeat for her controversial Brexit deal Tuesday, raising new questions over both the fate of her leadership and Britain's impending exit from the European Union. Lawmakers rejected her amended Withdrawal Agreement, even after she extracted eleventh-hour concessions from European Commission President Jean-Claude Jucker yesterday in Strasbourg, by a vote of 391-242.
Tesla (TSLA) CEO Elon Musk argued in a court filing late Monday that he didn't violate his settlement with the Securities and Exchange Commission and shouldn't be held in contempt for a questionable tweet he made in February.
In a filing with a federal court in New York, Musk argued that the Feb. 19 tweet "only repeated publicly disclosed information, and was a reflection of my pride in Tesla's success and its future. I did not believe that it contained, or reasonably could contain, any information material to Tesla or its shareholders."