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Treasury Secretary Mnuchin says Boeing’s 737 Max disaster could erase half a point from GDP this year — and economists fear worse
The Trump administration official still expects GDP to grow 2.5% through the year, while economists surveyed by Bloomberg project a 1.8% gain.
Boeing shares jump following reports that an Iranian missile caused a fatal 737 crash — bucking claims that a technical issue downed the jet
The company's shares tanked on Wednesday after initial reports of technical issues on the jet, wiping out as much as $4.3 billion in market value.
The jet involved is a predecessor to the 737 Max, the model grounded around the world after two fatal crashes and intense regulatory scrutiny.
The move comes as Boeing continues to weather the fallout from its 737 Max crisis. Chairman David Calhoun will replace the chief executive.
The model is Boeing's best-selling plane, and the production cut will hit GDP growth by lowering the company's inventory expansion, JPMorgan said.
‘We can no longer defend the shares’: Boeing gets slapped with a trio of Wall Street downgrades as 737 Max scandal worsens
Three Wall Street firms slashed their price targets for Boeing shares following reports that the company may have misled regulators.
Boeing's stock ended slightly higher after President Donald Trump announced the grounding of the 737 Max aircraft.
Boeing woes drive underperformance of the Dow relative to the S&P 500. Stock is down due to 737 Max scandals.
Boeing's market cap has dropped almost $40 billion from its 2019 peak. Wall Street remains bullish on the company.