Shares of General Electric Co. (GE) tumbled 5.8% on heavy volume in afternoon trading Wednesday, putting them on track for a 29-year closing low, amid growing concerns over the troubled aerospace industry as the COVID-19 pandemic continues. Trading volume swelled to 149.2 million shares, to make GE's stock the most actively traded on the NYSE. The industrial conglomerate's stock is on track for the lowest close since December 1991. The stock's new low comes a day after Boeing Co. (BA) said on NBC's "Today" show that it was"most likely" that a major airline will go out of business ( ) this year, given the strain caused by the COVID-19 pandemic, and that it would take 3-to-5 years for the industry to recover to post-COVID-19 levels. A negative outlook from Warren Buffett ( ) earlier this month has also weighed on investor sentiment. That doesn't bode well for GE ( ), which is among the largest jet engine makers. GE Aviation is GE's largest business segment. For the first quarter ( ), the unit reported a 39% drop in profit to $1.01 billion and a 13% decline in revenue to $6.89 billion. GE's stock has plunged 56.3% over the past three months, while the U.S. Global Jets ETF (JETS) has shed 61.6% and the Dow Jones Industrial Average has dropped 20.8%.
-Tomi Kilgore; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
May 13, 2020 13:15 ET (17:15 GMT)
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