Boeing Suffers Largest Weekly Drop Among Major Industrial Stocks

Last week, Boeing (NYSE:BA) experienced the largest decline in stock value compared to other major industrial firms in the United States as overall stocks dipped for the second consecutive week. Investor concerns intensified due to alarming inflation data that exceeded economists' predictions.

Industrial Sector Performance

The Industrial Select Sector SPDR ETF (NYSEARCA:XLI), which includes some of the heavyweight U.S. industrial companies, witnessed a modest downturn of less than 1% over the week. Similar trends were observed across various benchmarks such as the Standard & Poor's 500 stock index (SP500), which also fell by less than 1%. The Dow Industrials Average (DJI) dropped by 2.2%, while the Nasdaq Composite (COMP.IND) saw a decrease of less than 1% during the same period.

Market Worries on Inflation

Concerns heightened among investors following consumer and producer price data indicating that inflation rates were higher than what had been forecasted. The anticipation of a potential interest rate cut by the Federal Reserve was dampened as investors assimilated the figures. Fed Chair Jerome Powell has repeatedly mentioned that for any policy adjustments, policymakers would like to see inflation decline to their annual target of 2%.

Setbacks for Boeing

Boeing's stock concluded the week 8.7% lower, even though it saw a slight uptick on Friday. The aerospace giant grappled with renewed safety concerns after an incident involving a Boeing 787 Dreamliner operated by Latam Airlines which suddenly nosedived during a flight from Sydney to Auckland, injuring 50 people. Subsequent investigations suggested that the event may have been caused by a flight attendant inadvertently engaging a switch on the pilot's chair. Boeing issued a memo to 787 operators later in the week, advising on inspections and procedures to address potential switch issues.

In another development, there were reports that United Airlines (NASDAQ:UAL) was considering substituting some of its Boeing plane orders with jets from Boeing's European competitor, Airbus (OTCPK:EADSY) (OTCPK:EADSF). Boeing's production of its popular 737 Max aircraft remains restricted until the firm satisfies the U.S. Federal Aviation Administration's requirements for factory operation and safety improvements, following increased scrutiny due to a separate incident with an Alaska Airlines flight in January.

Positive Note for Deere & Company

There was a silver lining within the industrial sector as Deere (NYSE:DE) saw a weekly increase of 2.4%, marking the best performance among the primary holdings of the Industrial Select Sector SPDR ETF. However, the gain came amidst news of the company laying off approximately 150 employees from its Ankeny, Iowa, facility which has over 1,700 workers, including 1,136 in production roles.

Boeing, Industrials, Stocks