Boeing’s stock halts 2-day skid on Wall Street
HEJERE, Ethiopia (AP) – Boeing’s stock has halted a two-day skid after turning higher in the final minutes of trading on Wall Street.
The about-face came shortly after President Donald Trump issued an emergency order grounding all Boeing 737 Max 8 and Max 9 aircraft in the wake of a crash of an Ethiopian Airliner that killed 157 people. The Federal Aviation Administration followed with a statement saying it was ordering the planes grounded based on new evidence from the crash site.
While the U.S. grounding is not good news for the company, it did serve to eliminate a major element of uncertainty, which can often weigh on a stock more than bad news itself.
Many nations had already barred the Boeing 737 Max 8 from their airspace this week following Sunday’s Ethiopian Airlines crash. A similar Lion Air plane crashed in October, killing 189 people.
Shares in Chicago-based Boeing ended up $1.73 or about 0.5 percent, at $377.14 Wednesday after they lost more than 11 percent in the first two days this week. The stock is still up 17 percent for the year.