Boeing Soars Higher While Grocers Plummet

Although we don't believe in timing the market or panicking over daily movements, we do like to keep an eye on market changes -- just in case they're material to our investing thesis.

As of 1:10 p.m. EST the Dow Jones Industrial Average  (DJINDICES: ^DJI  ) is up 42 points, or 0.27%, to 16,004, while the S&P 500 has risen 0.01% to just below the 1,800 mark. The Nasdaq is slightly lower by 0.11%.

The moves higher may be related to the announcement last week that Chinese citizens will now be legally permitted to have two children, not just the long-mandated sole child, as long as one of the parents was an only child. This policy makes it likely the Chinese population will begin to grow even faster, meaning mores consumers and everything that comes along with a larger populace. That could help to recharge the Chinese economy and get it growing at double-digit rates again.

A few winners and losers
The Dow's biggest winner of the day is Boeing (NYSE: BA  ) , with shares higher by nearly 2%. The move comes after the company announced that it had taken $106 billion worth of orders at the Dubai Airshow on Sunday. One of the reasons for the large number of orders was the introduction of the new 777X twin-engine passenger aircraft. Boeing touts the 777X as the largest, most efficient twin engine in the world. It is the first plane of this size to have 259 orders and order commitments made on the first day it was available for sale. Right now this seems like a company that just can hardly do anything wrong, and investors don't even seem to mind its missteps.  

Outside the Dow, the major U.S. grocers are having a rough day. Shares of Kroger (NYSE: KR  ) the country's largest grocery chain, are down 2.84%, while No. 2 Safeway (NYSE: SWY  )  has lost 3.24%, and top "green" grover Whole Foods Market (NASDAQ: WFM  )  is off by 2.46%. All three stocks have had a very good year when compared to the Dow, respectively up 72%, 105%, and 28% over the last 52 weeks.

One reason Whole Foods has lagged the other two is because its share price had performed much better in the past, but this year earnings growth slowed and the stock dropped more than 11% just two weeks ago. Even more than that, the company also lowered guidance for sales growth from 13% to 11%  per year, which was a percentage below what it had previously told investors. Management stated that increased competition is one factor for the lower sales growth in the future, which is a testament to Kroger and Safeway as they try to take back market share by introducing more organic offerings. Still, this is a difficult industry to operate in and investors should keep a close eye on their holdings if they decide to jump in.

A deeper Foolish perspective

Millions of Americans have waited on the sidelines since the market meltdown in 2008 and 2009, too scared to invest and put their money at further risk. Yet those who've stayed out of the market have missed out on huge gains and put their financial futures in jeopardy. In our brand-new special report, "Your Essential Guide to Start Investing Today," The Motley Fool's personal finance experts show you why investing is so important and what you need to do to get started. Click here to get your copy today -- it's absolutely free.


 

Read/Post Comments (0) | Recommend This Article (1)

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.

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: 2732769, ~/Articles/ArticleHandler.aspx, 8/29/2014 8:15:27 PM

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...


Advertisement