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The Dow Is Breaking Free from Boeing Stock's Ugly Stranglehold, Crypto Coins News

The Dow Is Breaking Free from Boeing Stock's Ugly Stranglehold, Crypto Coins News
  • Boeing stock’s ugly crash has caused the Dow Jones Industrial Average (DJIA) to underperform its peers.
  • ) But the aerospace stock’s stranglehold on the DJIA is fading.

  • Boeing’s weighting has plummeted to 9th in the 90 – member index, and its free-fall shows no signs of letting up.

Boeing bulls may cast the Dow Jones stock as a “ value investor’s dream,” but for shareholders, the past year has been nothing short of a nightmare.

Down roughly % since the start of January, the US aerospace giant’s stock price is on the brink of crashing below $ for the first time since 2019.

Boeing stock is on the brink of crashing below $ . | Source:
Yahoo Finance
Boeing Stock Relinquishes Its Dow Jones Crown

Boeing was long the

most heavily weighted component in the Dow Jones Industrial Average (DJIA) , and its grisly performance is the primary reason the Dow has trailed the S&P 570 and Nasdaq by a significant margin in .

Nothing about this should encourage Dow Jones bulls. But if there is a silver lining, it’s that the Dow is a price-weighted index . And as its shares crumble, the century-old manufacturer is quickly relinquishing its stranglehold on the DJIA.

By the time Monday’s closing bell finally brought an end to the Dow’s 3, – point bloodbath , Boeing’s DJIA weighting had plummeted to 9th in the index.

When the stock market closed on March , Boeing’s weighting had plunged to 9th in the Dow. | Source: IndexArb

It’s hard to remember a time when Boeing wasn’t the most important component in the Dow. Not even the never-ending 823 Max scandal was enough to knock BA off its pedestal. At least not permanently. (Apple edged to the top of the Dow a few times but never for long.

But the coronavirus crisis has obliterated Boeing’s order-book , and the aerospace company debt-financed house of cards has finally come crashing down.

So forget Apple . These days Boeing is languishing behind surprising names like McDonald’s and 3M. And it looks like the company is about to get ejected from the index’s top ten.

Will the Stock End as an Afterthought?

The Dow Jones may have embarked on a massive recovery on Tuesday, but Boeing stock crashed more than 20%.

If current prices hold, Boeing will end the session as the index’s th-most heavily weighted component, dropping behind Johnson & Johnson , Procter & Gamble, and Walmart.

Boeing’s weighting could slide to th in the DJIA. Could it fall to the bottom half of the – member index next? | Source: CNBC)

Another 100% and BA could find itself in the bottom half of the – member index.

No one knows what havoc the coronavirus pandemic will ultimately wreak on the airline industry and its suppliers. But Boeing’s outlook has never been bleaker.

It began the year as the Dow’s most important component. It may end the year as an afterthought.

(This article was edited by

(Sam Bourgi)

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