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Why Boeing Stock Dropped 6.7% Today

By Rich Smith – Updated Apr 14, 2019 at 3:24PM

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Boeing is going down -- for all sorts of reasons.

What happened

For the second day in a row, Boeing (BA -5.37%) stock is plunging -- it's down 6.7% as of 12:05 PM EDT.

It's no great mystery why. On Sunday, Ethiopian Airlines Flight 302 crashed just minutes after takeoff from Addis Ababa, killing all 157 passengers and crew. This was the second crash of a Boeing 737 "Max 8" airplane in under six months.

So what

Multiple airlines around the world have grounded Boeing's 737 Max, with civil aviation authorities in Turkey, France, Austria, Ireland, the UK and Norway joining the crowd this morning. (Canada and the U.S., on the other hand, disclaim any intent to ground the planes...yet).

Stock market data on a digital screen.

Image source: Getty Images.

If that news wasn't already bad enough, President Donald Trump issued a pair of tweets today, expressing his own distrust of airplanes that are "too complex to fly." He didn't name Boeing outright, but taken in context, this was a vote of no confidence in Boeing stock from the highest power in the land.

Check out the latest earnings call transcript for Boeing.

He then added:

Now what

Nor are government entities the only ones voting no confidence. This morning, two stock analysts, at Germany's DZ Bank and America's Edward Jones, respectively, downgraded Boeing stock. Edward Jones is saying only that investors should hold pending further information about the Ethiopian crash -- but DZ is going right ahead and using the s word: sell.

It's shaping up to be another bad day to own Boeing stock.

Rich Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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