US stocks pull back from records as Boeing tumbles

US stocks pull back from records as Boeing tumbles

Traders work on the floor at the NYSE in New York
Traders work on the floor at the New York Stock Exchange (NYSE) in New York, U.S., January 10, 2020. REUTERS/Brendan McDermid

NEW YORK: The Dow pulled back from records on Friday (Jan 10) after earlier hitting the 29,000-point milestone as Boeing shares fell following fresh damaging revelations over the 737 MAX.

Dow member Boeing slid almost two per cent after the release of another round of embarrassing emails, including one in which an employee said the aircraft, which has been involved in two fatal crashes since 2018, had been "designed by clowns."

The aerospace giant has been in crisis mode since March, when the MAX was grounded worldwide.

All three major indices retreated from Thursday's all-time highs, with the Dow Jones Industrial Average ending at 28,823.77, down 133.13 points (0.46 per cent) after earlier topping 29,000 for the first time.

The broad-based S&P 500 shed 9.35 points (0.29 per cent) to 3,265.35, while the tech-rich Nasdaq Composite Index also lost 24.57 points (0.27 per cent) at 9,178.86.

Equities pushed into positive territory after the Labor Department reported that the United States added 145,000 new positions in December, a bit below expectations, while the unemployment rate held steady at 3.5 per cent, remaining at a 50-year low.

But stocks later retreated, with some analysts viewing the pullback as unsurprising given the strong gains in late 2019 and early 2020.

"It's not that we're seeing a big selloff as much as we're seeing a lack of buyers heading into the weekend after some obvious geopolitical turmoil last weekend," said JJ Kinahan, chief market strategist at TD Ameritrade.

Boeing supplier Spirit AeroSystems joined Boeing in tumbling, shedding 4.3 per cent after announcing it will lay off 2,800 employees after Boeing halted production of the MAX.

Source: AFP/ec

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