The Boeing share is expected to open considerably lower on the New York stock exchange on Monday after the fatal accident of the Boeing 737 MAX aircraft in Ethiopia on Sunday with 157 passengers. The broader Dow-Jones index, in which Boeing is a heavyweight, is heading for a lower opening. The other indicators on Wall Street are likely to start the trading session with small results.
The crash of the 737 MAX aircraft is already the second with this type of aircraft in the past six months. In October last year, the same model of the Indonesian Lion Air crashed into the Java Sea, where 189 people died. For both accidents it applies that they took place shortly after taking off. Airline companies in countries such as China and Indonesia are keeping aircraft of this type on the ground for the time being.
The 737 MAX model of the American aircraft manufacturer is one of the most sold at the moment, with around 5,000 orders of which three hundred and fifty aircraft have already been delivered. The Boeing share was about 9 percent lower in the forex trading.
Investors process multiple conflicting signals about the global economy. Retail sales in the United States increased slightly in January compared to a month earlier. Last Friday, however, it was announced that job growth in the US virtually stopped in February. The disappointing Chinese export figures also fueled economic concerns among investors.
Trade negotiations between the US and China are still progressing well. The two delegations recently reached agreement on “vital points”. A specific date for signing a trade agreement has not yet been announced.
Tesla raises prices worldwide by around 3 percent on its more expensive car models. With this, the maker of electrically powered vehicles wants to cover the costs of his showrooms. Tesla announced earlier that it would close several stores, but now comes back to this in part.
Furthermore, the producer of chips and graphic cards Nvidia is in the spotlight. Nvidia acquires the Israeli-American chip company Mellanox Technologies for nearly $ 7 billion in its largest acquisition to date.
The Dow-Jones index closed 0.1 percent lower on Friday at 25,450.24 points. The broad S&P 500 ended 0.2 percent lower at 2743.06 points and the technology level meter Nasdaq also lost 0.2 percent to 7408.14 points.