(CercleFinance.com) – The New York Stock Exchange is expected to begin on a mixed note Monday morning, with investors taking a break to prepare for the latest inflation figures and earnings season, in a market that is shaping up weakened by the heavy decline of Boeing.
Half an hour before the opening, the ‘futures’ contract on the Dow Jones lost 0.4% while that on the Nasdaq nibbled a little more than 0.1%, announcing a scattered start to the session.
Boeing stock, one of the main weightings of the Dow, is heading towards a fall of more than 7% at the opening after the decision of the American airline Alaska Airlines to ground its Boeing 737 MAX-9 suite to an incident resulting in a door being torn off in flight.
This decline equates to a loss in market capitalization of more than $11 billion.
‘This mishap comes as Boeing and its supplier Spirit AeroSystems, which manufactured the panel, grapple with production issues that have hampered recovery after a long period of grounding of the 737 MAX due to safety concerns and disruption wider due to the pandemic’, recall Kiplink analysts.
The incident is expected to penalize the American aviation sector as a whole, with the FAA having required immediate inspections of 737-9 planes having the same configuration as the plane concerned.
Investors should also refrain from taking any risk as the banks will open the ball with quarterly publications on Friday, notably JPMorgan Chase and Wells Fargo.
Financial analysts estimate that profits at S&P 500 companies are expected to have fallen 1.3% in the fourth quarter compared to the same period last year, according to FactSet data.
Beyond the results, investors are awaiting inflation figures, which will be published on Thursday, to find out if a rate cut can really be considered in March.
While waiting for this statistic, the yield on the 10-year US Treasury bond confirms its recovery beyond the technical bar of 4%, to 4.05%.
Oil prices are falling sharply after reaching their highest levels since the end of 2023 last week, driven by logistical disruptions in the Red Sea where attacks are raging.
The February contract on American light crude (West Texas Intermediate, WTI) is currently down 3.8% to $71.
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