Boeing Problems An Issue for Wall Street

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Published January 17, 2013

| FOXBusiness

A 4% rebound in Apple (AAPL) shares helped the Nasdaq Composite find positive territory and sent the S&P 500 back to a 5-year high Wednesday, but weakness in Boeing (BA) handed the Dow its first decline in six days.

Boeing shares are under more pressure today. The Federal Aviation Administration is requiring all U.S. airlines to stop flying Boeing's 787 Dreamliner. The news came just hours after Japan's two biggest airlines -- who operate half of all Dreamliners around the world -- grounded them because of an emergency landing.

State side, United Airlines is the only carrier with the Dreamliner -- it has six.

Boeing shares fell 3.4% Wednesday, and are down another 2% in the pre-market Thursday. Overall stock futures are modestly higher after robust data on housing starts and a better-than-expected read on weekly jobless claims.

Separately, United Airlines is trying to raise airfare prices for the second time this year. It has increased its base domestic fare as much as $10 each way. So far JetBlue (JBLU) has followed, upping its U.S. fares between $2 and $5 roundtrip. For perspective, there were 15 attempted fare increases in 2012; seven were successful, raising airfare 4.5%.

Fulfilling a doughnut craving has gotten a whole lot easier.  Krispy Kreme is planning 160 new stores across the U.S. over the next four  years. Larger rival Dunkin Donuts (DNKN) is opening some 350 new shops this year, as well as heading to California in 2015. 

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http://www.foxbusiness.com/markets/2013/01/17/boeing-problems-issue-for-wall-street/