The Dow Jones will open lower on Monday due to issues with Boeing, and there is uncertainty about interest rate changes affecting other major US stock indexes.
Boeing is in a bit of a slump, down 6.2% before the market even opens. This drop comes after the US Federal Aviation Administration (FAA) told them to ground some of their 737 MAX 9 planes. This decision came after a piece fell from one of their planes operated by Alaska Air Group in mid-flight on Friday. If this trend continues, Boeing could lose around $12.5 billion.
The problem is not just limited to Boeing. Alaska Air Group had to cancel more than 200 flights due to the FAA order. Other airlines such as JetBlue Airways, Southwest Airlines and United Airlines are also feeling the pressure, with their share prices falling between 0.5% and 1.9%.
Last week, the S&P 500, which shows how well big American companies are doing, had its worst week since October. People are a little worried and not so sure when the US government will change interest rates.
There has also been some conflicting news about how many jobs there are and how the service sector is doing. All of this makes things a little confusing for investors.
Later today, we’re waiting to hear from Raphael Bostic, who is part of a group that decides on US interest rates. Your thoughts on what the government should do will be something people will pay attention to. Over the weekend, another person, Lorie Logan, said the government may need to start raising interest rates again.
People who are betting on what the government will do now think there is a 61% chance that interest rates will go down a little in March. A few weeks ago, it was more than 85%, according to a tool that analyzes these bets.
Investors are also curious about reports on how prices are changing and want to hear from different government officials about what is happening.
Before the market opens at 8:21 a.m., the Dow e-minis (a kind of practice stock) were down 122 points, which is about 0.32%. S&P 500 e-minis rose a little, about 0.04%, and Nasdaq 100 e-minis rose 24 points, or 0.15%.
Energy companies such as Exxon Mobil, Occidental Petroleum, Devon Energy and Marathon Oil are also seeing a small drop, about 1%, because oil prices are down more than 3%.
Big banks like JPMorgan Chase, Wells Fargo, Citigroup and Bank of America have mixed results, with some down a bit and others up. These banks will be the first to share how much money they made in the last few months and people hope they have made good profits.
There is also good news in the market. A company called Harpoon Therapeutics saw its value more than double because reports say another big company, Merck & Co, could buy it for around $700 million. Dell Technologies, a computer company, rose 2.7% after JP Morgan said they were doing well and upgraded them to “overweight.”
Also read: Global Market Update: Inflation Concerns and Impact on Earnings Season