Boeing shares sell-off after Ethiopian Airlines crash
Shares of Boeing (NYSE:BA) were down $37.79, 8.94% to $384.75 in pre-market trade as of 6:37 a.m. ET on Monday. The sell-off came after 157 people perished over the weekend when a 737 Max 8 jet belonging to Ethiopian Airlines crashed six minutes after taking off from Addis Ababa en route to Nairobi, Kenya.
Several airlines around the world have since grounded 737 Max 8 planes following the deadly crash. China, Ethiopia, and Indonesia are among the countries that have ordered their airlines to ground Boeing 737 Max fleets. Investigators have recovered the plane’s flight data recorder but are yet to determine the cause of the crash.
The circumstances of Sunday’s accident are similar to the crash in October of a Lion Air 737 Max 8 in Indonesia that killed 189 people. Boeing has been the best performing Dow component since October. The stock is up 31% year-to-date.
Retail sales report
The U.S. Commerce Department is scheduled to release its retail sales report for the month of January at 8:30 a.m. ET. In December, sales unexpectedly plunged at the fastest pace since the 2009 financial crisis. Wall Street will be watching keenly for signs of a rebound.
Analysts forecast flat retail sales, up from the -1.2% reported in December. Core retail sales are expected to have grown 0.4%, an increase from the previously reported -1.8%. The report was delayed because of the 35-day partial government shutdown earlier that ended on Jan. 25.
Trump to release 2020 budget
President Donald Trump is set to announce his spending plan for 2020 today, marking the first time the he will unveil a budget roadmap under a divided Congress. Trump will request roughly $8.6 billion in new funding for his southern border wall, a move that is expected to face fierce resistance from Democrat-controlled House.
The spending plan assumes continued healthy economic growth in the U.S. and promises a balanced budget in 15 years. It also calls for nearly $3 trillion in spending cuts and is expected to include an increase in defense spending.