The Dow Waits for the Fed as General Electric, Boeing Drop

On Wednesday, the Dow Jones Industrials (DJINDICES: ^DJI  ) had fallen 41 points as of 11 a.m. EDT. With the Federal Open Market Committee due to wrap up its two-day meeting this afternoon, investors expect insight on the future direction of Fed monetary policy within a few hours. Few believe the central bank will alter its course of gradually reducing the amount of bond buying it has made through quantitative easing Within the key industrial sector of the Dow, both General Electric (NYSE: GE  ) and Boeing (NYSE: BA  ) lost ground early Wednesday.

General Electric fell 0.6%. Shareholders have closely watched the conglomerate's attempts to buy the energy business of French giant Alstom. The proposed merger has raised nationalistic concerns in France and led General Electric's primary European rival to enter what could become a bidding war. CEO Jeff Immelt will reportedly meet with the French economic minister in an attempt to make GE's case for its own offer over that of Siemens, Mitsubishi Heavy Industries, and Hitachi, which joined forces to provide a rival bid for a different set of Alstom's assets. Today's share-price decline might be due to reports that General Electric will make a higher bid for the energy business, improving on its $17 billion offer in order to get into the ballpark of the Siemens deal that puts a roughly $19.3 billion price tag on the segment. There's no doubt that General Electric would benefit from an Alstom takeover, but paying too much would make those benefits somewhat less attractive.

Boeing fell more than three-fourths of a percent. On its face, the drop seems inconsistent with news reports that the aerospace giant is in talks with a Chinese commercial-finance company to sell four or five 747-8 aircraft. Neither party confirmed the reports, though, and the deal puts more attention on how that particular airplane model hasn't taken off in the same way that Boeing's updated 737 model and its new 787 Dreamliner have. Moreover, Boeing's success has also created substantial problems for it to overcome, as it wrestles with juggling the manufacturing process for so many new aircraft models while maintaining the quality control that customers, passengers, and regulators all demand.

Investors in the Dow Jones Industrials can expect to see quiet trading until this afternoon's Fed announcement. At that point, investors could react dramatically if the Federal Reserve says anything unexpected about the future direction of monetary policy.

You can't afford to miss this
"Made in China" -- an all too familiar phrase. But not for much longer: There's a radical new technology out there, one that's already being employed by the U.S. Air Force, BMW and others. Respected publications like The Economist have compared this disruptive invention to the steam engine and the printing press; Business Insider calls it "the next trillion dollar industry." Watch The Motley Fool's shocking video presentation to learn about the next great wave of technological innovation, one that will bring an end to "Made In China" for good. Click here!

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: 2998858, ~/Articles/ArticleHandler.aspx, 9/5/2015 6:33:51 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...

Dan Caplinger

Dan Caplinger has been a contract writer for the Motley Fool since 2006. As the Fool's Director of Investment Planning, Dan oversees much of the personal-finance and investment-planning content published daily on With a background as an estate-planning attorney and independent financial consultant, Dan's articles are based on more than 20 years of experience from all angles of the financial world.

Today's Market

updated 9 hours ago Sponsored by:
DOW 16,102.38 -272.38 -1.66%
S&P 500 1,921.22 -29.91 -1.53%
NASD 4,683.92 -49.58 -1.05%

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

9/4/2015 4:30 PM
^DJI $16102.38 Down -272.38 -1.66%
BA $129.76 Down -1.26 -0.96%
The Boeing Company CAPS Rating: ****
GE $24.00 Down -0.51 -2.08%
General Electric C… CAPS Rating: ****