The Dow Jones Industrial Average (^DJI 1.89%) was holding onto a small gain by early afternoon Tuesday, up 0.25% at 12:30 p.m. EDT. This gain is despite a worsening pandemic. The number of daily confirmed cases of COVID-19 continues to be elevated in the United States, and more than a dozen states have either paused or rolled back their reopening plans.
Boeing (BA 2.80%) stock reversed course on Tuesday after two major orders were cancelled. Meanwhile, Apple (AAPL 1.27%) stock gained even as iPhone shipment estimates were reeled in, and shares of major financial companies jumped after quarterly dividends were maintained.
Boeing loses orders
Monday's rally for Boeing on news that the FAA had approved certification flights for the grounded 737 MAX was partially reversed on Tuesday following two significant order cancellations.
Late Monday, Reuters reported that Norwegian Air had cancelled orders for 97 Boeing airplanes. These include 92 737 MAX planes and 5 787 Dreamliners. Norwegian will also claim compensation from Boeing for the grounding of the 737 MAX and engine problems for the 787.
On Tuesday, Reuters reported that BOC Aviation, a Hong Kong-based aircraft leasing company, has canceled an order for 30 737 MAX planes. BOC also plans to defer the delivery of 737 MAX planes that have not been cancelled.
Boeing stock was down about 5.5% by early Tuesday afternoon.
Apple 5G estimates slashed
DigiTimes reported on Tuesday that its sources expect shipments of certain 5G iPhones to be far below previous estimates for 2020.
There are multiple 5G standards, and Apple is expected to launch some phones this year with the mmWave 5G standard, which can provide dramatically faster speeds compared to 4G. DigiTimes' sources are now putting the shipment estimate for these mmWave iPhones at 15 million to 20 million for 2020, down from a previous estimate of 30 million to 40 million.
The tech giant will face the difficult task later this year of convincing iPhone users to upgrade to pricey new technology in the roughest economy since the financial crisis. Apple stock had managed to gain 0.9% by early Tuesday afternoon.
Financials maintain dividends
The major financial components of the Dow are holding their dividends steady after the Federal Reserve put limits on dividend payments and share buybacks following recent stress tests.
JPMorgan Chase announced on Monday that it intends to maintain its current quarterly dividend of $0.90 per share, but the company warned that the dividend could be cut if its outlook deteriorated significantly.
American Express will hold its quarterly dividend at $0.43 per share for the third quarter. Goldman Sachs will also keep its quarterly dividend of $1.25 per share the same.
With the economic outlook highly uncertain and the pandemic far from under control in some U.S. states, dividend cuts from the major financial companies could become necessary down the road. By early Tuesday afternoon, JPMorgan Chase stock was up 1.3%, American Express stock was up 0.5%, and Goldman Sachs stock was up 1.9%.