Stocks sink as Boeing 737 Max delayed, coronavirus reaches US

More bad new for Boeing slams broader market

U.S. major averages ended the session in the red Tuesday, pressured by a further delay in the Boeing 737 Max's return to service and the first case of the coronavirus reaching the U.S.

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Stocks opened lower and took a leg down late afternoon when the first U.S. case of the Coronavirus was confirmed on Tuesday, hours after Chinese officials announced the sixth death due to the virus, which has sickened more than 300 people in the country.

TickerSecurityLastChangeChange %
BABOEING COMPANY151.84+4.97+3.38%
SP500S&P 5002789.82+39.84+1.45%
I:DJIDOW JONES AVERAGES23719.37+285.80+1.22%
I:COMPNASDAQ COMPOSITE INDEX8153.575088+62.67+0.77%

Complicating the downward pressure, word that the Boeing 737 Max's return to the skies would be delayed until the summer. The news sent shares of the planemaker to their lowest level in over a year.

U.S. carriers American Airlines, United Airlines and Southwest Airlines were all lower on the news. Delta Air Lines, which doesn't fly the 737 Max, was also under pressure. So too were Spirit Aerosystems and General Electric, which provide parts for the aircraft.

TickerSecurityLastChangeChange %
AALAMERICAN AIRLINES GROUP INC.12.51+1.18+10.41%
UALUNITED AIRLINES HLDG.31.50+3.99+14.50%
LUVSOUTHWEST AIRLINES CO.36.47+2.17+6.33%
DALDELTA AIR LINES INC.24.39+1.16+4.99%
SPRSPIRIT AEROSYSTEMS HOLDINGS INC22.58+1.28+6.01%
GEGENERAL ELECTRIC COMPANY7.14-0.16-2.19%

Tesla soared after New Street Research raised its price target to $800 a share. Chinese rival Nio gained for a ninth straight day, more than 60 percent during the streak.

TickerSecurityLastChangeChange %
TSLATESLA INC.573.00+24.16+4.40%
NIONIO INC2.67-0.07-2.55%

Elsewhere, Beyond Meat was sharply higher after Starbucks announced it would add plant-based food to its menu.

TickerSecurityLastChangeChange %
BYNDBEYOND MEAT INC.72.30+2.83+4.07%
SBUXSTARBUCKS CORPORATION73.88+2.31+3.23%

Meanwhile, the oil services provider Halliburton reported better-than-expected fourth-quarter results, but North American revenue plunged 21 percent and the company took a $2.2 billion charge related to its struggling U.S. business.

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Netflix was in focus ahead of the company’s fourth-quarter results, which are due out after the closing bell. The streaming giant is expected to earn 52 cents a share on revenue of $5.45 billion, according to analysts surveyed by Refinitiv.

TickerSecurityLastChangeChange %
HALHALLIBURTON COMPANY8.21-0.54-6.17%
NFLXNETFLIX INC.370.72-0.40-0.11%

On the commodities front, West Texas Intermediate crude oil slipped to the $58 per barrel level and gold was modestly lower by 0.2 percent near $1,557 an ounce.

U.S. Treasurys gained, pushing the yield on the 10-year note down to 1.773 percent.

In Europe, Britain’s FTSE and France’s CAC were both lower by 0.8 percent and Germany’s DAX closed fractionally higher.

Markets across Asia were under pressure with Hong Kong’s Hang Seng losing 2.8 percent, China’s Shanghai Composite falling 1.4 percent and Japan’s Nikkei sliding 0.9 percent.

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