Categories LATEST

Boeing stock sinks after crash involving 737 MAX 8

Investor sentiment took a beating Monday after a 737 MAX 8 aircraft carrying 188 passengers, operated by Indonesian low-cost airline Lion Air, crashed near Jakarta. While the exact cause of the crash will be known only after the investigation, its sheer scale demands accountability. The ill-fated plane is the first ‘new 737 model’ to have crashed – the worst such incident in about three years.

The plane reportedly crashed into the sea shortly after taking off from Jakarta Monday morning. According to sources close to the matter, no one on board the plane could have survived. It was proceeding to the Pangkal Pinang city on the island of Bangka. Though the pilot made a request for returning to Jakarta after the take-off, the air traffic control lost contact with the plane soon.

The ill-fated plane is the first in the new 737 model to have crashed, the worst such incident in about three years

The selloff triggered by the accident wiped out several millions of dollars from Boeing’s market value, paring most the gains that came off after last week’s better-than-expected earnings report. The stock has been under pressure following reports that President Donald Trump is planning to impose a fresh round of tariffs on Chinese imports if the talks between Washington and Beijing fails.

Boeing Q3 profit beats estimates, lifts 2018 forecast

“Boeing is providing technical assistance at the request and under the direction of government authorities investigating the accident,” said an official statement from the company. With a significant number of new orders in the pipeline, Lion Air is one among the most valued customers of Boeing.

Boeing shares opened Monday’s session higher but lost about 7% as trading progressed, marking the biggest intraday fall in about two-and-half years and defying the strong gains made by the Dow Jones Industrial Average. Earlier, the stock has climbed to an all-time high in the first week of October, but retreated in the following days.

Follow our Google News edition to get the latest stock market, earnings and financial news at your fingertips

Most Popular

Stitch Fix (SFIX) Stock: Will the innovative biz model survive virus-led slump?

The business world is still struggling to come out of the virus-induced slowdown, but it seems almost every retail segment benefited from the pandemic at some point. The vaccination drive

General Mills (GIS): Three factors that are expected to help drive growth for the food company going forward

Shares of General Mills Inc. (NYSE: GIS) were up 3.2% on Wednesday after the company delivered better-than-expected results for the first quarter of 2022. Net sales rose 4% year-over-year to

IPO Alert: Allvue Systems sets IPO terms, to raise around $290 million

It is estimated that the alternative investments industry has expanded at a compound annual rate of 10.2% over the past ten years and had $11 trillion in assets under management

Add Comment
Viewing Highlight