Futures Point to Mixed Open As Boeing Backlash Continues

  1. FAA stands behind Boeing

U.S. aviation officials are still hesitant to ground Boeing 737 Max 8 even as countries and airlines around the world continue to suspend the aircraft. The U.S. Federal Aviation Administration (FAA), maintains Boeing 737 Max planes are still safe to fly, but dozens of airlines have disputed its recommendation.

China, Singapore, Australia, Norway, the United Arabs Emirates, Germany, the UK, Vietnam, New Zealand, and Ethiopia are among the countries that have grounded the 737 Max 8. The European Union has also blocked the plane on the basis that it could be unsafe to fly.

New York Gov. Andrew Cuomo has called on the FAA to reconsider its decision not to suspend the Boeing 737 Max. Shares of Boeing ended Tuesday’s regular session down 6.15%. The stock was down $6.67, or 1.78% to $368.74 in pre-market Wednesday as of 6:31 a.m. EDT.

  1. U.S. indexes set for mixed open

U.S. futures point to a mixed open on Wednesday with blue-chip Dow futures down 2 points, amid another huge blow to Boeing shares as more airlines around the world grounded the aerospace giant’s 737 Max 8 jets following its second fatal crash in five months.

The S&P 500 futures indicated a gain of 2 points, while the tech-heavy Nasdaq 100 futures added 6 points, or about 0.1%

  1. Investors await U.S. durable goods orders data and PPI

The U.S. Census Bureau is set to release its manufacturer’s new orders for durable goods report for January at 8:30 a.m. EDT. Analysts forecast that new orders for durable goods in the country will drop by 0.5 percent on a monthly basis in January, compared with a rise of 1.2 percent in December.

Excluding transportation equipment, analysts expect core orders to have grown by a marginal 0.1 percent in line with December’s pace. Wall Street will keep a keen eye important on orders for non-defense capital goods (excluding aircrafts), which is seen as a proxy for investment and business spending.

Analysts expect that metric to have jumped 0.1 percent in January, after declining by 1.0 percent in December. Elsewhere, U.S. PPI data is expected to print at 2.6 percent on year-over-year basis

  1. UK lawmakers to decide on Brexit future after rejecting Theresa May’s deal

British lawmakers will vote at 3:00 p.m. EDT on whether to leave the European Union without a deal on March 29. The vote comes a day after the lawmakers handed Prime Minister Theresa May another crushing defeat and robbed her of any control over the Brexit process.

If MPs votes against exiting the EU without a deal, they will decide on Thursday whether to request the block to extend Article 50 and delay scheduled departure date. The pound gained 0.6% against the dollar as of 5:50 a.m. EDT after JP Morgan said Brexit is now more unlikely to happen.