Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Boeing Stock Is Leading the Dow Higher

Don't let it get away!

Keep track of the stocks that matter to you.

Help yourself with the Fool's FREE and easy new watchlist service today.

The Dow Jones Industrial Average (DJINDICES: ^DJI  ) is slightly higher following some mixed reports on the economy. Boeing (NYSE: BA  ) is leading the Dow today as initial reports indicate that Friday's Dreamliner fire was not caused by the plane's battery. As of 1:15 p.m. EDT the Dow is up by 0.12% to 15,483 points, while the S&P 500 (SNPINDEX: ^GSPC  ) is up 0.12% as well to reach 1,682.

There were three U.S. economic releases today.





Retail sales




Retail sales excluding automobiles




Empire State Manufacturing Survey




Business inventories




The key figure is retail sales, which suggest a slowing economy. Retail sales were up a seasonally adjusted 0.4% in June, slower than May's 0.5% growth and analyst expectations of 0.9% growth. Year over year, retail sales are up 6%.

US Retail Sales Growth Chart

US Retail Sales Growth data by YCharts.

Retail sales growth looks worse if you exclude motor vehicle and parts sales, which makes for no growth in June versus 0.3% growth in May. Excluding motor vehicle and parts sales, economists had expected 0.6% growth, so this was indeed a weak report. Spending on automobiles has been one of the fastest-rising segments of the retail economy, rising 8.3% in the past 6 months. The only retail sector to grow faster has been nonstore retailers, whose sales have grown 11.2% in the past six months. Nonstore retailers don't have physical locations and include online retailers, direct-response sellers, infomercial companies, etc.

Today's Dow leader
Today's Dow leader is Boeing, up 3.2%. Last week Boeing was the worst-performing Dow stock, down 4.7% on Friday and 2.3% for the week after a Dreamliner 787 caught fire on the ground at London's Heathrow Airport, stoking fear that the Dreamliner's battery problems weren't behind it. If you recall, at the beginning of the year the Federal Aviation Administration grounded the Dreamliner after indentifying the plane's lithium battery as the source of a series of small fires on the jets. After Boeing fixed the problem, the FAA allowed it to resume deliveries in May, and the stock is up more than 10% since then.

On Friday, a Dreamliner operated by Ethiopian Airlines caught fire while parked. However, early reports from the U.K.'s Air Accidents Investigation Branch showed there was "no evidence of a direct causal relationship" between the fire and the lithium batteries. Continued problems with the battery would have been a setback for Boeing, but with this false alarm behind it the company can continue to reap the rewards of its investment in the new jetliner.

With the American markets reaching new highs, investors and pundits alike are skeptical about future growth. They shouldn't be. Many global regions are still stuck in neutral, and their resurgence could result in windfall profits for select companies including Boeing. A recent Motley Fool report, "3 Strong Buys for a Global Economic Recovery," highlights Boeing and two other companies that could take off when the global economy gains steam. Click here to read the full report!

Read/Post Comments (0) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2538017, ~/Articles/ArticleHandler.aspx, 9/27/2016 9:51:33 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 18,098.15 3.32 0.02%
S&P 500 2,148.20 2.10 0.10%
NASD 5,261.48 3.98 0.08%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/27/2016 9:36 AM
^DJI $18098.15 Up +3.32 +0.02%
^GSPC $2148.20 Up +2.10 +0.10%
S&P 500 INDEX CAPS Rating: No stars
BA $130.43 Down -0.14 -0.11%
Boeing CAPS Rating: ****