Boeing helps keep Dow positive as the other indexes struggle

Boeing helps keep Dow positive as the other indexes struggle

CEO Dennis Muilenburg says the company expects to start delivering more planes.

Associated Press

NEW YORK — It was a split decision on Wall Street on Thursday as gains in a handful of industrial and health care companies largely outweighed sluggishness elsewhere in the market, including the technology sector.

Sizable gains by Boeing and United Technology were enough to push the Dow Jones industrial average to another record, but other major indexes fell.

Retailers were also weak after the government said prices paid by consumers jumped in August. That could prompt the Federal Reserve to raise interest rates sooner than expected in order to cool the economy and stave off inflation. That would be bad for companies like retailers that depend on shoppers spending money.

Energy companies rose as U.S. crude oil climbed to its highest price in six weeks.

The Standard & Poor’s 500 index slid 2.75 points, or 0.1 percent, to 2,495.62. The Dow Jones industrial average rose 45.30 points, or 0.2 percent, to 22,203.48. It was the Dow’s third straight record high close.

The Nasdaq composite slumped 31.10 points, or 0.5 percent, to 6,429.08 as big names like Facebook and Alphabet, Google’s parent company, lost ground. The Russell 2000 index of smaller-company stocks fell 1.87 points, or 0.1 percent, to 1,425.02.

On the New York Stock Exchange, there were slightly more winners than losers.

The Labor Department reported that U.S. consumer prices grew 0.4 percent in August as gas and housing costs rose. Prices are up 1.9 percent over the last year. That could show inflation is speeding up, though it’s not clear how much of the recent increase in gas prices was due to Hurricane Harvey, which deluged the Gulf Coast region in late August and caused many drilling rigs and refineries to shut down.

The Federal Reserve will meet next week and investors wondered if Thursday’s report makes it more likely the Fed will raise interest rates later in the year. Higher interest rates reduce growth because they make borrowing more expensive.

Michael Scanlon, a portfolio manager for Manulife Asset Management, said if inflation does get stronger over the next few months, “it would be a sign of more health in the economy overall,” he said.

Urban Outfitters fell 77 cents, or 3.3 percent, to $22.77 and discount retailer Ross Stores lost 81 cents, or 1.3 percent, to $60.60. Amazon shed $7.39 to $992.21. Coca-Cola lost 38 cents to $46.11 and grocery store operator Kroger fell 47 cents, or 2.2 percent, to $21.26.

Jewelry seller Tiffany dropped $4.56, or 4.8 percent, to $90.95 after one of its biggest shareholders, Qatar’s investment fund, said it sold some of its Tiffany stock.

Boeing rose another $3.30, or 1.4 percent, to $245.23. Wednesday afternoon, CEO Dennis Muilenburg said the company expects to start delivering more planes. The stock rose 0.6 percent a day ago. Other industrial companies also climbed. United Technologies gained $2.86, or 2.6 percent, to $113.14.

Benchmark U.S. crude oil rose 59 cents, or 1.2 percent, to $49.89 a barrel. That was its highest closing price since the end of July. Brent crude, used to price international oils, gained 31 cents to $55.47 barrel in London.

Among energy companies, Schlumberger rose 78 cents, or 1.2 percent, to $67.70 and Anadarko Petroleum picked up 40 cents to $43.53.

Chipmaker Lattice Semiconductor slipped after the U.S. government stopped its sale to a firm backed by the Chinese government because of national security concerns. Lattice accepted the $1.02 billion offer from Canyon Bridge Partners in November, but investors have long been skeptical the deal would be completed. Last week a U.S. government panel said the sale should be blocked.

Lattice wobbled between gains and losses and finished 2 cents lower at $5.70. Canyon Bridge agreed to pay $8.30 a share.

The Bank of England kept its key interest rate at a record low but indicated that it could start raising rates sooner than markets have been expecting. That sent the pound higher and British stocks lower. A stronger pound would hurt the earnings of British companies that do a lot of business overseas.

Britain’s FTSE 100 fell 1.1 percent while the French CAC 40 rose 0.1 percent and Germany’s DAX fell 0.1 percent.

Investors in Asia were disappointed after China’s National Bureau of Statistics said the world’s second-largest economy grew at a slower pace in August. The Japanese Nikkei 225 fell 0.3 percent and Hong Kong’s Hang Seng index fell 0.4 percent. The Kospi in South Korea gained 0.7 percent.

Bond prices edged lower. The yield on the 10-year Treasury note rose to 2.20 percent from 2.19 percent. The yield on the 2-year note rose to 1.37 percent from 1.35 percent.

In other energy trading, wholesale gasoline fell 2 cents to $1.63 a gallon. Heating oil added 1 cent to $1.78 a gallon. Natural gas rose 1 cent to $3.07 per 1,000 cubic feet.

Gold rose $1.30 to $1,329.30 an ounce. Silver dropped 8 cents to $17.79 an ounce. Copper lost 2 cents to $2.96 a pound.

The dollar slid to 110.54 yen from 110.66 yen. The euro rose to $1.1914 from $1.1873. The pound jumped to $1.3398 from $1.3197.

Talk to us

More in Herald Business Journal

Demolition of the YMCA in downtown continues on Tuesday, April 13, 2021 in Everett, Wa. (Olivia Vanni / The Herald)
Apartments will rise from the site of the former YMCA annex

In all, 260 units are planned for the downtown Everett site. The older brick building will remain.

Signs from the Department of Ecology warning about contamination in the creek that runs through Powder Mill Gulch on Wednesday, March 31, 2021 in Everett, Wa. (Olivia Vanni / The Herald)
State order targets Boeing Everett plant’s polluted history

Records show a dispute over cleanup requirements for chemically tainted water. The company denies there’s a disagreement.

FILE - In this Oct. 1, 2020 file photo, traffic passes the Boeing airplane production plant, in Everett, Wash.  U.S. manufacturers expanded in March 2021 at the fastest pace in 37 years, a sign of strengthening demand as the pandemic wanes and government emergency aid flows through the economy.  (AP Photo/Elaine Thompson, file)
Boeing sees uptick in airplane orders as travel picks up

The company in April delivered 19 Maxes, three 737s for military use and seven larger widebody planes.

FILE- In this Sept. 30, 2020, file photo, a Boeing 737 Max jet, piloted by Federal Aviation Administration (FAA) chief Steve Dickson, prepares to land at Boeing Field following a test flight in Seattle. Boeing says it has informed 16 of its customers that they should address a possible electrical issue in certain 737 Max aircraft before using them further. Boeing said Friday, April 9, 2021, that the recommendation was made “to allow for verification that a sufficient ground path exists for a component of the electrical power system.” (AP Photo/Elaine Thompson, File)
Boeing: possible electrical issue in some 737 Max aircraft

The company said that the new problem was unrelated to the flight-control system.

The 214-foot tall cranes work to unload their first cargo shipments at South Terminal at the Port of Everett on Thursday, April 8, 2021 in Everett, Wa. (Olivia Vanni / The Herald)
Renovated Port of Everett terminal gets first cargo customer

The 655-foot Westwood Columbia is the first ship to call at the newly upgraded South Terminal dock.

Project Roxy is a proposed 2.8 million square foot distribution center that would be built on a 75-acre parcel at the Cascade Industrial Center. The rendering depicts the proposed project at 4620 172nd Street in Arlington from a northwest perspective.
1,000 jobs: Amazon to open distribution center in Arlington

The company is the tenant behind Project Roxy, a $355 million building at the Cascade Industrial Center.

Edmonds grocery store workers may soon earn hazard pay

Some employers are required to increase wages by $4 an hour, the city council voted Tuesday.

Aerospace supplier with Everett site files for bankruptcy

Wichita-based TECT Aerospace filed for Chapter 11 and plans to sell an Everett manufacturing facility.

Washington's Lottery ticket display. (Andrea Brown / The Herald)
Want to get lucky? Washington’s Lottery lists Top 10 stores

One of the luckiest retailers in the state was a Safeway in Everett, as measured by $1,000-plus winners.

What local firms are doing to promote diversity and equity

Here’s how some of Snohomish County’s biggest companies and organizations say they are making a difference.

Garry Clark, the new CEO of Economic Alliance Snohomish County (Kevin Clark / The Herald)
At a tough time, a new CEO leads local economic development

Garry Clark has taken the helm at Economic Alliance Snohomish County, where job one is pandemic recovery.

Kathy Coffey (left) and Courtney Wooten
Leadership Snohomish County offers racial equity conference

The fifth annual day-long Step Up: Moving Racial Equity Forward will be held online on April 30.