- 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 $US28 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 $US371.
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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