Shares of Boeing Co. (BA) took a 4.6% dive in premarket trading Monday, to pace all of the Dow Jones Industrial Average's early decliners, after Warren Buffett's negative call on the airline industry ( ). The implied price decline in the aerospace and defense giant's stock would shave about 42 points off the Dow's price, while Dow futures shed 209 points, or 0.9%. Of the Dow's 30 components, 29 were trading lower in the premarket. Buffett said over the weekend that he sold off his holdings in airline stocks, saying the airline business had changed in a "major way" after the coronavirus pandemic. That sent airline stocks tumbling ( ) in Monday's premarket. "Buffett's comments obviously don't bode well for Boeing," said Mike O'Rourke, chief market strategist at JonesTrading, as Boeing makes the planes for the industry. Boeing's stock has plunged 58.1% over the past three months through Friday, while the Dow Jones Transportation Average has lost 24.5% and the Dow has dropped 17.7%.
-Tomi Kilgore; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
May 04, 2020 08:58 ET (12:58 GMT)
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