Boeing’s stock sinks again, heads toward biggest weekly loss in over 2 years
Shares of Boeing Co. slumped further Wednesday to suffer a third-straight loss, putting them on track for their biggest weekly decline in over two years, as concerns over the potential negative effects of President Donald Trump’s tariff plan continued to weigh on the aerospace and defense giant.
Boeing’s stock BA, -2.48% fell 2.5% to pace the 25 of 30 Dow stocks that lost ground Wednesday. The price decline of $8.41 shaved about 58 points off the Dow, which slid 249 points. See Market Snapshot.
The shares have now dropped $24.26, or 6.8%, so far this week. That would be the biggest weekly percentage decline since it tumbled 11.4% during the week ending Feb. 12, 2016. The week’s price drop has accounted for 167 points, or 29%, of the Dow’s 578-point selloff.
A selloff sparked by Trump’s trade policy marks an ironic twist for Boeing investors, as the stock has been by far the best performing Dow Jones Industrial Average DJIA, -1.00% component during Trump’s presidency, after soaring 89% in 2017. Read more about Boeing’s stock performance during Trump’s presidency.
Trump visited a Boeing facility in St. Louis on Wednesday to promote recent tax legislation and to campaign for Republican Senate candidate Josh Hawley.
Boeing’s stock rose to a record close of $364.64 on Feb. 27, more than doubling in 12 months, after the company said Trump negotiated a “good deal” for it to build the next-generation Air Force One planes for about $4 billion.
Boeing is proud to build the next generation of Air Force One, providing American Presidents with a flying White House at outstanding value to taxpayers. President Trump negotiated a good deal on behalf of the American people. pic.twitter.com/m0HtGfXVlv
— The Boeing Company (@Boeing) February 27, 2018
That was a little over a year after Trump threatened to cancel the order because “costs are out of control” at more than $4 billion.
Since its record close, Boeing’s stock has slumped 9.4%, as Trump announced tariffs on steel and aluminum imports despite objections from Republicans and White House insiders, leading to the departure of Trump’s top economic adviser Gary Cohn. A close at or below $328.17 would represent a decline of at least 10% from the record close, which would mark Boeing’s first official correction since June 2016.
The worry, for those not in the steel- and aluminum-producing businesses, is that the tariffs could jack up raw materials costs for industrial companies, raise prices for consumers and spark a retaliatory trade war with the U.S.’s major trading partners.
Don’t miss: Here’s what the 30 Dow industrials companies say about a potential trade war.
See also: Here’s why the Dow took the Trump tariffs so hard.
The Wall Street Journal reported Wednesday that the U.S. is pressing China to reduce Beijing’s bilateral trade surplus by $100 billion. Meanwhile, a report in the New York Times suggested Boeing may be a prime target for China to retaliate against in a trade war.