More bad news for Boeing, stocks fall amid China’s coronavirus and more in Tuesday’s Closing Bell on Money and Markets.
The Top Story
In addition to the market fall off, it may be June or July before federal regulators sign off on the Boeing 737 Max aircraft, according to sources, who told CNBC on Tuesday that the date is considerably later than the company expected.
The 737 Max has been grounded by all U.S. airlines with the aircraft in their fleets and the company recently reported a loss of 87 commercial airplane orders in 2019.
The company could be in the market to secure up to $10 billion in loans to help offset the losses from production halting.
Boeing Co. (NYSE: BA) shares dropped 3.3% Tuesday as a result of the news. Trading of the company was halted in the afternoon after the news came out.
Money and Markets: Closing Bell*
S&P 500: 3,320 (-8 points, -0.2%)
DOW: 29,196 (-152 points, -0.5%)
NASDAQ: 9,370 (-18 points, -0.1%)
GOLD: $1,558.60 (-$1.80, -0.1%)
BITCOIN: $8,722.59 (+$80.51, +0.9%)
U.S. 10-YEAR YIELD: 1.76%
*- as of 4:20 p.m. ET
A Big Win
In this morning’s Wall Street Wake-Up, we told you about Logitech International SA (Nasdaq: LOGI) reporting better-than-expected quarterly profits. Shares of the company were up 2.6% in afternoon trading.
M&A News
Uber Technologies Inc. (NYSE: UBER) is selling its Uber Eats in India to Zomato for $172 million, according to Bloomberg. The move is to cut Uber’s losses in the market.
In a $6.2 billion deal, Ares Management Corp. (NYSE: ARES) is buying a majority stake in SSG Capital Holdings Ltd. — an Asian asset management firm.
The Toro Co. (NYSE: TTC) is spending $167.5 million for turf, landscape and snow and ice equipment maker Venture Products.
Golden Nuggets
Precious metal prices were down slightly in afternoon trading on Tuesday.
Gold futures dropped $1.80 to trade at $1,558.60 an ounce while silver was down $0.26 to $17.76 an ounce. Platinum fell by $16 to $1,006, and palladium was off $125 to $2,289 an ounce.
Cannabis Corner
Like the rest of the market, cannabis stocks were also down in afternoon trading Tuesday.
Aurora Cannabis Inc. (NYSE: ACB) dropped 5.4% while Canopy Growth Corp. (NYSE: CGC) dropped 2.8%. Cannabis ETFs Advisorshares Pure Cannabis ETF (NYSE: YOLO) and Innovative Industrial Properties (NYSE: IIPR) were also down.
Stock Market Update
Thanks to fears of a virus spreading in China and Boeing’s news, shares of three major American airlines fell Tuesday.
United Airlines Holdings Inc. (Nasdaq: UAL) fell as much as 4.6% in afternoon trading. American Airlines Group Inc. (Nasdaq: AAL) dropped 4.2% and Delta Air Lines Inc. (NYSE: DAL) dropped by 2.7%.
U.S. markets fell throughout the day.
The Dow Jones Industrial Average fell 152 points, or 0.5% to 29,196. The S&P 500 fell 0.2% and the Nasdaq Composite dropped 0.1%.
In other news, homebuilding was up sharply from 2012 to 2019, according to analysis from realtor.com.
However, the pace of homebuilding (5.9 million single-family homes) did not offset the number of households formed at the time (9.8 million). That means it would take homebuilders up to five years to balance the market.
Shares of Amazon.com Inc. (Nasdaq: AMZN) jumped about 1% in afternoon trading after news broke that the company filed to trademark “Amazon Pharmacy” in Canada, Australia and the United Kingdom.
Today’s Big Winners:
Tesla Inc. (Nasdaq: TSLA) +7.1%
Abiomed Inc. (Nasdaq: ABMD) +4.7%
Centurylink Inc. (NYSE: CTL) +4.6%
Costco Wholesale Corp. (Nasdaq: COST) +2.8%
Intel Corp. (Nasdaq: INTC) +1.5%
Today’s Big Losers:
Boeing Inc. (NYSE: BA) -3.3%
Trip.com Group Ltd. (Nasdaq: TCOM) -7.9%
Wynn Resorts Ltd. (Nasdaq: WYNN) -6.1%
MGM Resorts International (NYSE: MGM) -6.2%
Regeneron Pharmaceuticals Inc. (Nasdaq: REGN) -5.7%
Check back for the most important news and numbers each day after the Closing Bell, only on Money and Markets.
Don’t forget about “Marijuana Markets: a POTcast,” featuring the biggest cannabis news and investment notes from Banyan Hill’s Anthony Planas, here on Money and Markets each Saturday morning.