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Wall Street rises; Boeing up despite U.S. grounding of 737 MAX jets

Stock MarketsMar 13, 2019 05:38PM ET
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© Reuters. Traders work on the floor at the NYSE in New York

By Caroline Valetkevitch

NEW YORK (Reuters) - U.S. stocks rose on Wednesday, led by gains in healthcare shares, and Boeing (NYSE:BA) edged upward even as the United States joined other nations in grounding the company's 737 MAX jets.

Boeing Co shares ended up 0.5 percent at $377.14, recovering from a more than 3 percent fall in the afternoon, when the United States announced it was grounding Boeing's 737 MAX jets following Sunday's fatal crash in Ethiopia.

The U.S. Federal Aviation Administration cited new satellite data and evidence from the scene of Sunday's crash, the second disaster involving the 737 MAX in less than five months.

The grounding gives Boeing time to address any problems and not face another potential disaster, said Tim Ghriskey, chief investment strategist at Inverness Counsel in New York.

"It seems like the worst is over for Boeing," he said. "The fact that (the stock) appears to be stabilizing means the market appreciates that."

Boeing shares are still down about 11 percent since Friday's close. The world's largest planemaker had been the best-performing Dow component this year.

Also helping stocks Wednesday, fresh economic data strengthened the Federal Reserve's patient stance on future interest rate hikes.

Producer prices barely rose in February, resulting in the smallest annual increase in more than 1-1/2 years, yet another indication of benign inflation.

CVS Health Corp (NYSE:CVS) rose 3.5 percent after Bernstein started coverage of the pharmacy benefit manager with an "outperform" rating. The S&P 500 healthcare index rose 1.1 percent. UnitedHealth Group (NYSE:UNH) shares rose 2.6 percent.

The Dow Jones Industrial Average rose 148.23 points, or 0.58 percent, to 25,702.89, the S&P 500 gained 19.4 points, or 0.69 percent, to 2,810.92 and the Nasdaq Composite added 52.37 points, or 0.69 percent, to 7,643.41.

Energy shares rose as oil prices rallied about 2 percent. The S&P 500 energy index finished up 1.09 percent.

Adding to the upbeat mood was a vote in which British lawmakers rejected leaving the European Union without a deal in any scenario.

Fueling some volatility in afternoon trading, U.S. President Donald Trump said he was in no rush to complete a trade deal with China and insisted that any deal include how it treats U.S. intellectual property.

Advancing issues outnumbered decliners on the NYSE by a 2.43-to-1 ratio; on Nasdaq, a 1.62-to-1 ratio favored advancers.

The S&P 500 posted 61 new 52-week highs and one new low; the Nasdaq Composite recorded 65 new highs and 30 new lows.

About 7.3 billion shares changed hands on U.S. exchanges. That compares with the 7.4 billion daily average for the past 20 trading days.

Wall Street rises; Boeing up despite U.S. grounding of 737 MAX jets
 

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Chris Sundo
Chris Sundo Mar 14, 2019 12:44AM ET
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All the pilots turn off the auto-pilot when the auto-pilot gives problems. So why didn't the crash pilots turn it off? == This month's candle is a bearish engulfing. So I wouldn't be surprised to see the lowest Fib level around 228.83 as measured against the 2016 low, or at least the top fib level around 311.77 that supports at least 7 monthly bars.
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Dave Jones
Dave Jones Mar 13, 2019 3:06PM ET
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"Possible erroneous angle-of-attack inputs on Boeing 737 Max aircraft… can potentially make the horizontal stabilizers repeatedly pitch the nose of the airplane downward, making the aircraft difficult to control," says the FAA in a 7 November emergency airworthiness directive.
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Gold Follower
Gold Follower Mar 13, 2019 2:26PM ET
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Everything is up whatever data or any other thing shows
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Mirjana Mladenovic
John Mar 13, 2019 12:03PM ET
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All world will be in fear from their planes,and they will be in maximum profit...I bet that max 8 is all about low quality materials,everything cheap,so they can gain max profit on it
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Dave Jones
Dave Jones Mar 13, 2019 10:25AM ET
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terrible manipulation. Corruption sickening is reality. They would rather manipulate their darling stock than face reality.
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9 2
Viktor Veselý
Viktor Veselý Mar 13, 2019 10:25AM ET
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Any evidence?
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Brett Miller
Brett Miller Mar 13, 2019 8:59AM ET
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Boeing is up pre-market?
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Tim Boyd
Tim Boyd Mar 13, 2019 8:06AM ET
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Nasdaq futures up 50 bps for no discernable reason.
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Dave Jones
Dave Jones Mar 13, 2019 8:06AM ET
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up because of manipulation and fraud. what do you expect?
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