Shares of manufacturing and transportation companies fell as analysts warned of more struggles for General Electric. Shares of GE fell after analysts at brokerages Morgan, Stanley, UBS and elsewhere warned that the industrial giant would likely have to cut its dividend. While impressed by the response of Chief Executive John Flannery to earnings struggles, Morgan Stanley warned that GE wasn't out of the woods.
"The scale of the challenges that he and his new team face are greater than even we had imagined," said the Morgan Stanley analysts, as reported earlier. "So we now believe that the dividend will have to be adjusted down to reflect substantially lower earnings power as well as the fact that balance sheet leverage has increased materially..."
Shares of Alcoa spinoff Arconic, which makes aluminum panels for cars and planes, among other things, slipped after it appointed former GE executive Charles Blankenship its next chief executive.
-Rob Curran, email@example.com
(END) Dow Jones Newswires
October 23, 2017 16:18 ET (20:18 GMT)