Shares of manufacturing and transportation companies rose amid deal activity.
United Technologies neared a deal to buy Rockwell Collins for more than $20 billion, as the conglomerate seeks to become one of the largest makers of aerospace equipment in the world. The shares of other aerospace companies such as Boeing rose in sympathy.
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The rise of airlines in the Middle East, Asia and China and upgrading of U.S. and European fleets has led to a burst of jet-manufacturing activity in the last half decade. Some analysts see signs of a peak in the market, however. "Headwinds from overcapacity, yield pressure, and political and regulatory hurdles, have resulted in slowdown in capacity growth plans by the three large Middle Eastern carriers [Emirates Airlines, Qatar Airways and Etihad Airways]," said analysts at brokerage Morgan Stanley, in a note to clients.
Continued downward pressure on oil prices "could mean demand is lower than expectations when large fleet orders were placed by the Gulf carriers," said the Morgan Stanley analysts, who also cited the risk of protectionism from European markets defending their own airlines.
Rob Curran, firstname.lastname@example.org
(END) Dow Jones Newswires
August 29, 2017 17:18 ET (21:18 GMT)