Boeing’s big drop is shaving more than 300 points off the Dow (BA)

Boeing

Dow Jones Industrial Average futures were down more than 170 points and Boeing was responsible for the entire drop and more.
An Ethiopian Airlines flight crashed Sunday morning, the second Boeing 737 Max 8 aircraft to do so in five months.
Boeing has a weighting of more than 10% of the Dow.
Watch Boeing trade live.

The second crash of a Boeing 737 Max 8 aircraft in five months has caused has sent Boeing shares down 12% Monday morning, wiping out nearly $28 billion of the company’s market value.

The sell-off in Boeing, which commands a weighting of more than 10% of the Dow Jones Industrial Average, has wiped out nearly 340 points from the index. The Dow would, which is down 187 points in pre-market trading, would be trading higher if not for Boeing’s losses. By comparison, the S&P 500 index was up slightly in early action.

Boeing had previously driven 30% of the gain in the Dow this year. The Dow is a price-weighted index, meaning the company with the highest share price, Boeing, has the heaviest weighting. Even with Monday’s losses, Boeing’s stock price is still the highest in the index, at $371.

Unlike the Dow, the S&P 500 is weighted by market cap, meaning the largest compay, Microsoft, has the heaviest weighting. By comparison, Boeing commands the 15th biggest weighting of S&P 500 names.

Sunday’s crash of an Ethiopian Airlines flight, which killed all 157 on board, follows the crash of a Lion Air flight in Indonesia this past October. Both involved Boeing’s 737 Max 8 plane. Boeing has over 5,000 orders outstanding for the 737 Max 8 aircraft.

Boeing’s stock was up 14.9% this year, including Monday’s sell-off.

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