US stocks lose ground but Boeing news provides boost

US stocks lose ground but Boeing news provides boost

A Wall Street sign in New York
FILE PHOTO: A Wall Street sign in New York. (Photo: REUTERS/Eric Thayer)

NEW YORK: Wall Street was mostly lower on Monday (Nov 11) in a quiet holiday session, but Boeing's announcement on returning its 737 MAX to service after two deadly crashes provide a boost to the Dow.

The aviation giant said it still hopes the Federal Aviation Administration (FAA) will allow it to resume MAX deliveries to airlines before the end of the year, and to approve the aircraft to begin flying in January.

READ: Boeing says 737 MAX expected to resume flying in January

Boeing shares jumped 4.6 per cent and that helped the Dow Jones Industrial Average recover from early losses to end the day 10.25 points (0.04 per cent) higher at 27,691.49.

The broad-based S&P 500 also clawed back off the lows of the day but still closed down 6.07 points (0.20 per cent) at 3,087.01, while the tech-rich Nasdaq Composite Index dropped 11.04 points (0.13 per cent) to finish at 8,464.28

After all three indexes hit records last week, investors are awaiting news on the US-China trade conflict.

Art Hogan of National Holdings said markets are "trying to figure out whether we know where we stand on trade, because of mixed messages coming out of the White House."

President Donald Trump on Friday contradicted Chinese assertion that Washington and Beijing already had agreed to roll back tariffs.

With the government closed in observance of Veteran's Day, trading was fairly quiet but investors will have plenty of material to digest on the US economy, including a report Tuesday from the Port of Los Angeles on the impact of the China trade dispute on jobs and the economy.

Government inflation data is due out Wednesday and industrial production on Friday, but the main attention grabber will be testimony before Congress by Federal Reserve Chairman Jerome Powell on Wednesday and Thursday.

Powell is expected to reiterate his message that the central bank is done for now with policy moves and will be on standby to see how the economy reacts to three interest rate cuts.

Most of the corporate earnings season is complete, but Walmart releases its quarterly results on Thursday. Shares in the retail chain fell 0.3 per cent.

Southwest Airlines closed with a modest gain after the Boeing announcement. The airline has been hard hit by the grounding of the 737 MAX.

Walgreen Boots Alliance jumped five per cent amid news it had received a buyout offer.

Source: AFP/de