US stocks remain near record highs
Nasdaq leads the charge with DJIA still lagging
Boeing called to open higher after earnings release
As the broadest gauge of large cap US stocks, the S&P500 is often seen to provide the best overall picture of the world’s largest stock market and the picture is looking pretty at the moment with the index closing in on its all-time highs. The record peak of just above 2946 was made last September and with price currently trading around 8 points below it, there wouldn’t need to be much upside for the market to head off out into uncharted territory.
The S&P500 is knocking on the door of all-time highs with the peak just above 2946 made in September 2018 now less than 10 points away. Source: xStation
The Nasdaq took out its prior peak of 7733 yesterday and is leading the move higher, and working on a 6th consecutive daily gain. While it is not far from its own record high, the DJIA is lagging behind somewhat and currently resides a little over 1% from its highest ever level. One reason for the underperformance is the composition of the indices with the DJIA being price-weighted which means it has a large weighting to Boeing. Boeing has struggled lately amidst safety concerns and has reported its latest trading update ahead of the opening bell.
Given the recent troubles it doesn’t come as too much of a surprise that Boeing have announced the firm will pause share buybacks and is withdrawing its full year guidance after the recent troubles. The problems relate to the 737 Max aircraft that’s software is suspected as being at fault in two deadly crashes. First-quarter earnings were inline with analysts forecasts at $3.16 a share while revenue showed a marginal miss in coming in at $22.92B vs $22.98B forecast. Despite this, the pre-market reaction has actually been positive with shares called to open higher by 1.6% in what appears to be a case of expectations being so pessimistic it was hard to disappoint further.
Shares in Boeing are called to open higher after the latest trading update. The stock has been under pressure since the second 737 Max aircraft crashed just over a month ago and raised safety concerns regarding the plane’s software. Source: xStation