Boeing Takes a Dive as the Dow Drops 100 Points

The blue-chip index falls below 17,000 despite Wal-Mart's strong showing today

Jul 8, 2014 at 2:30PM
Daily Fool

The market's taken a big step back from its recent record highs today, as the Dow Jones Industrial Average (DJINDICES:^DJI) has dipped below the 17,000-point mark in afternoon trading. As of 2:30 p.m. EDT, the Dow has shed more than 100 points, with all but a handful of its member stocks sinking into the red so far. Boeing has (NYSE:BA) taken the biggest hit of the day, with the aerospace giant's shares slipping 1.6% and leading the Dow's fall, while Wal-Mart (NYSE:WMT) has led the index's corps of gainers so far. Across the market, former Dow member Alcoa's (NYSE:AA) on tap to release earnings results after the closing bell, kicking off earnings season. Let's catch up on what you need to know.

Trouble on the horizon for Boeing?
Investors have backed off of Boeing today as fears have mounted that Washington could cut off funding for the Export-Import Bank, the federal institution that provides credit and financing to the company and other businesses. Credit ratings agency S&P noted that Boeing could see its future credit in danger if the Export-Import Bank does indeed close, with the aerospace giant potentially needing to drum up between $7 billion and $9 billion in financing. It's also a major concern for Boeing on the competitive landscape: Top rival Airbus receives funding of its own from European export institutions, and without necessary loans and guarantees from the Bank, Boeing could find itself in a bind.


Boeing's 787 Dreamliner. Source: Boeing.

There's still time to act before Boeing is in jeopardy. Congress has until the end of September to authorize new funding for the Bank, and S&P noted that Boeing wouldn't feel immediate effects in 2014 or 2015 from a closure. In the long term, however, such an event would shut down a major source of the company's available customer financing, which provides guaranteed loans and other services for top buyers of Boeing aircraft such as airlines and leasing companies. It's a potentially huge opportunity for Airbus to capitalize on, but for Boeing investors, the drama on Capitol Hill over the Export-Import Bank is a major issue to watch through the rest of the summer.

Elsewhere on the Dow, Wal-Mart's having a better day, even after Wal-Mart U.S. CEO Bill Simon noted that the ongoing American job recovery hasn't spurred sales as hoped. Simon painted a murky picture of the retail giant's path so far, noting that lower- and middle-income customers -- the demographics that make up the company's core shoppers -- have adjusted spending habits with the ongoing economic pressures. Wal-Mart has looked to adjust itself with a focus on smaller stores and e-commerce, but with five consecutive quarters of declining domestic same-store revenues, the company's best hope may be to focus on overseas progress while the U.S. recovery continues to churn forward. For Wal-Mart investors, it's best to keep a focus on the long term.

Outside the index, aluminum producer Alcoa's stock hasn't moved much today, even though earnings are set to be released after the closing bell. Shares of the former Dow member have advanced by 0.4% as investors await quarterly results, with Wall Street expecting Alcoa to see sales fall by more than 4% year over year. Alcoa has rallied around the surging aerospace industry lately. It made a $2.85 billion acquisition of British aerospace parts manufacturer Firth Rixson last month. That purchase won't have a positive impact on the company's finances just yet, but in the long term, it's a big investment in a surging market for a company that has struggled in the aftermath of the recession.

Alcoa's stock has jumped more than 39% year to date, and a miss today could send shares slumping more than expected -- but the company is making moves with the big picture in mind, and as the U.S. economic recovery forges on, Alcoa's putting together the pieces to impress investors in the long term.

Don't miss these top dividend stocks for the next decade
The smartest investors know that dividend stocks simply crush their non-dividend-paying counterparts over the long term. That's beyond dispute. They also know that a well-constructed dividend portfolio creates wealth steadily, while still allowing you to sleep like a baby. Knowing how valuable such a portfolio might be, our top analysts put together a report on a group of high-yielding stocks that should be in any income investor's portfolio. To see our free report on these stocks, just click here now.

Dan Carroll has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

1 Key Step to Get Rich

Our mission at The Motley Fool is to help the world invest better. Whether that’s helping people overcome their fear of stocks all the way to offering clear and successful guidance on complicated-sounding options trades, we can help.

Feb 1, 2016 at 4:54PM

To be perfectly clear, this is not a get-rich action that my Foolish colleagues and I came up with. But we wouldn't argue with the approach.

A 2015 Business Insider article titled, "11 websites to bookmark if you want to get rich" rated The Motley Fool as the #1 place online to get smarter about investing.

"The Motley Fool aims to build a strong investment community, which it does by providing a variety of resources: the website, books, a newspaper column, a radio [show], and [newsletters]," wrote (the clearly insightful and talented) money reporter Kathleen Elkins. "This site has something for every type of investor, from basic lessons for beginners to investing commentary on mutual funds, stock sectors, and value for the more advanced."

Our mission at The Motley Fool is to help the world invest better, so it's nice to receive that kind of recognition. It lets us know we're doing our job.

Whether that's helping the entirely uninitiated overcome their fear of stocks all the way to offering clear and successful guidance on complicated-sounding options trades, we want to provide our readers with a boost to the next step on their journey to financial independence.

Articles and beyond

As Business Insider wrote, there are a number of resources available from the Fool for investors of all levels and styles.

In addition to the dozens of free articles we publish every day on our website, I want to highlight two must-see spots in your tour of

For the beginning investor

Investing can seem like a Big Deal to those who have yet to buy their first stock. Many investment professionals try to infuse the conversation with jargon in order to deter individual investors from tackling it on their own (and to justify their often sky-high fees).

But the individual investor can beat the market. The real secret to investing is that it doesn't take tons of money, endless hours, or super-secret formulas that only experts possess.

That's why we created a best-selling guide that walks investors-to-be through everything they need to know to get started. And because we're so dedicated to our mission, we've made that available for free.

If you're just starting out (or want to help out someone who is), go to, drop in your email address, and you'll be able to instantly access the quick-read guide ... for free.

For the listener

Whether it's on the stationary exercise bike or during my daily commute, I spend a lot of time going nowhere. But I've found a way to make that time benefit me.

The Motley Fool offers five podcasts that I refer to as "binge-worthy financial information."

Motley Fool Money features a team of our analysts discussing the week's top business and investing stories, interviews, and an inside look at the stocks on our radar. It's also featured on several dozen radio stations across the country.

The hosts of Motley Fool Answers challenge the conventional wisdom on life's biggest financial issues to reveal what you really need to know to make smart money moves.

David Gardner, co-founder of The Motley Fool, is among the most respected and trusted sources on investing. And he's the host of Rule Breaker Investing, in which he shares his insights into today's most innovative and disruptive companies ... and how to profit from them.

Market Foolery is our daily look at stocks in the news, as well as the top business and investing stories.

And Industry Focus offers a deeper dive into a specific industry and the stories making headlines. Healthcare, technology, energy, consumer goods, and other industries take turns in the spotlight.

They're all informative, entertaining, and eminently listenable ... and I don't say that simply because the hosts all sit within a Nerf-gun shot of my desk. Rule Breaker Investing and Answers contain timeless advice, so you might want to go back to the beginning with those. The other three take their cues from the market, so you'll want to listen to the most recent first. All are available at

But wait, there's more

The book and the podcasts – both free ... both awesome – also come with an ongoing benefit. If you download the book, or if you enter your email address in the magical box at the podcasts page, you'll get ongoing market coverage sent straight to your inbox.

Investor Insights is valuable and enjoyable coverage of everything from macroeconomic events to investing strategies to our analyst's travels around the world to find the next big thing. Also free.

Get the book. Listen to a podcast. Sign up for Investor Insights. I'm not saying that any of those things will make you rich ... but Business Insider seems to think so.

Compare Brokers