Dow slips at the open, pressured by Boeing shares – CNBC

Dow slips at the open, pressured by Boeing shares – CNBC

The Dow Jones Industrial Average fell slightly on Tuesday as shares of Boeing continued to struggle.

delay in orders” after two 737 MAX jets crashed in less than 6 months. The accident led several countries, including the U.K., China and Indonesia, to ground all flights involving that airplane model.

The broader stock market traded higher, however, after the release of key inflation data. The S&P 500 traded 0.2 percent higher, led by gains in the energy and materials sectors. The Nasdaq Composite advanced 0.1 percent.

The U.S. consumer price index rose 0.2 percent in February, matching expectations. The so-called core CPI, which strips out food and energy, fell short of estimates by gaining just 0.1 percent.

Traders work on the floor of the New York Stock Exchange (NYSE) on March 04, 2019 in New York City.

Spencer Platt | Getty Images

Traders work on the floor of the New York Stock Exchange (NYSE) on March 04, 2019 in New York City.

“Services inflation is offsetting no price pressures on the goods side,” said Peter Boockvar, chief investment officer at Bleakley Advisory Group, in a note to clients. “As wages are rising, which depending on productivity, we can’t keep our eye off the inflation ball, especially with services inflation already running almost 3%.”

“The Fed has license to remain ‘flexible.'”

The Federal Reserve indicated earlier this year it would be “patient” in raising rates, fueling a market rally to start 2019. The S&P 500 is up 11 percent through Monday’s close, while the Dow has gained nearly 10 percent.

Stocks rose on Monday as strong gains in tech firms like Apple and Facebook offset a steep decline in Boeing. Better-than-expected January U.S. retail sales numbers also gave a boost to confidence, after a raft of weak December data.

Monday’s moves came after U.S. major indexes posted their worst weekly performances of 2019 amid growing concerns of a possible economic slowdown around the world.

However, the previous session’s rally should help equities resume their upward trend, said Mark Newton, managing member at Newton Advisors.

“The act of getting back above prior week’s lows at 2767-72 along with surpassing trendline resistance should produce a lift to test and exceed March highs,” he said. “Breadth proved to be far stronger yesterday on the upside than any of the down days last week.”

Stocks in Asia Tuesday got a slight boost after British Prime Minister Theresa May got legally binding assurances from the EU over the most contentious part of the deal, the Irish backstop.

Investor attention will be firmly focused on the Brexit deal in the U.K. when British Members of Parliament (MPs) vote Tuesday evening on whether to accept or reject May’s deal ahead of the scheduled March 29 departure from the EU.

—CNBC’s Spriha Srivastava contributed to this report.


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