S&P 500, Nasdaq gain after tame inflation data; Boeing weighs on Dow
NEW YORK (Reuters) - The S&P 500 and Nasdaq rose on Tuesday after tame inflation data supported the Federal Reserve’s dovish stance on rate hikes, but the Dow was down as Boeing’s shares extended sharp losses from the day before.
FILE PHOTO: Traders work on the floor at the post where Boeing is traded at the New York Stock Exchange (NYSE) in New York, U.S., March 11, 2019. REUTERS/Brendan McDermid
The Labor Department said its Consumer Price Index (CPI) rose last month, in line with estimates, and in the 12 months through February the CPI had the smallest gain since September 2016.
Boeing Co slumped 5.9 percent, extending Monday’s losses, as more countries grounded the company’s best selling line of jets following a second fatal crash in five months, while Senators Mitt Romney and Elizabeth Warren also urged the Federal Aviation Administration to temporarily ground the aircraft.
Airline stocks took a hit with the Dow Jones airlines index dropping 1.6 percent. The broader industrial sector was down 0.7 percent.
“The airlines industry as a whole is now exposed to political pressure and potentially some industry pressure that wasn’t there a few days ago,” said Chris Zaccarelli, chief investment officer for Independent Advisor Alliance in Charlotte, North Carolina.
The Dow Jones Industrial Average fell 64.98 points, or 0.25 percent, to 25,585.9, the S&P 500 gained 11.38 points, or 0.41 percent, to 2,794.68 and the Nasdaq Composite added 42.58 points, or 0.56 percent, to 7,600.64.
The world’s largest planemaker fell as much as 13.4 percent on Monday and weighed on the Dow Jones index although it pared losses towards the end of the session.
Ethiopian Airlines crash weighs heavily on Boeing
Apple climbed again on Tuesday, a day after the iPhone maker invited media to a March 25 event where it is expected to launch a television and video service.
F5 Networks Inc slipped after the network software maker said it would buy privately held NGINX.
Advancing issues outnumbered declining ones on the NYSE by a 1.89-to-1 ratio; on Nasdaq, a 1.27-to-1 ratio favored advancers.
The S&P 500 posted 44 new 52-week highs and 1 new lows; the Nasdaq Composite recorded 64 new highs and 19 new lows.
Reporting by Amy Caren Daniel and Medha Singh in Bengaluru; Editing by Shounak Dasgupta and Phil Berlowitz
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