Please ensure Javascript is enabled for purposes of website accessibility

Boeing Soars Over a Falling Dow

By Travis Hoium - Apr 5, 2013 at 3:33PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Dow is down big, but Boeing is a big winner today.

Remember that slow and steady economic recovery we were having? It may have become even slower during March, because the jobs report released this morning was less than inspiring, and the markets are rethinking their recent bullishness. The economy added just 88,000 jobs, according to the Department of Labor. That's the worst result since June, although unemployment did fall to 7.6% as people left the workforce. The Dow Jones Industrial Average (^DJI 0.15%) has greeted the news by slumping 0.65% near the end of trading, while the broader S&P 500 (^GSPC -0.81%) dropped 0.79%.

Cisco Systems (CSCO 0.97%) is one of the biggest losers on the Dow, falling 2.5% today. Competitor F5 Networks said its revenue and earnings would fall well short of guidance the company set back in January. This could mean some market-share gains for Cisco, but F5 CEO John McAdam said, "We believe the slowdown in orders is not caused by competitive losses," so investors are seeing it as a red flag for the industry as a whole. Cisco won't release fiscal third-quarter earnings until May 15, so it's a long wait to see whether Cisco is feeling the same pressure as F5.

ExxonMobil (XOM 0.54%) is down 1.2% on a variety of news items. The price of crude oil is down 0.4% today to less than $93 per barrel. The U.S. Department of Energy said crude inventories hit their highest level since 1990, an indication of downward pressure on prices. On the positive side, Exxon's deal to buy an 80% interest in Liberia's Block 13 from Canadian Overseas Petroleum got final approval from the Liberian legislature and president. Africa is a growing source of reserves, and this will be an incremental positive for ExxonMobil.

One of the few stocks bucking the downtrend is Boeing (BA -3.76%), which has risen 1.3% today. This morning, U.S. Transportation Secretary Ray LaHood said the company had a "good plan" to fix a battery problem that have left the 787 Dreamliner grounded. Boeing is planning to run test flights today, so a return to the skies for the entire fleet could come shortly. That's news investors have been waiting a long time for.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Dow Jones Industrial Average (Price Return) Stock Quote
Dow Jones Industrial Average (Price Return)
$31,928.62 (0.15%) $48.38
S&P 500 Index - Price Return (USD) Stock Quote
S&P 500 Index - Price Return (USD)
$3,941.48 (-0.81%) $-32.27
The Boeing Company Stock Quote
The Boeing Company
$119.40 (-3.76%) $-4.67
Cisco Systems, Inc. Stock Quote
Cisco Systems, Inc.
$43.77 (0.97%) $0.42
Exxon Mobil Corporation Stock Quote
Exxon Mobil Corporation
$94.40 (0.54%) $0.51

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/24/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.