US stocks open lower to start four-day trading week

Live3 updates

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  Tue, January 16, 2024 at 8:10 AM MST

  Boeing falls 5% on analyst downgrade

  Boeing (BA) shares fell more than 5%, making the stock the biggest decliner on the Dow Jones Industrial Average (^DJI) during the morning session, after a downgrade from Wells Fargo analysts.

  The firm cut its stock rating recommendation to Hold from Buy, and lowered their price target to $225 from $280 .

  The industrial giant’s 737–9 Max fleet has come under increasing scrutiny by the Federal Aviation Administration (FAA) after a door “plug” flew off an Alaska Airlines plane midair earlier this month.

  Last week the FAA said the company’s instructions to airlines on how to inspect the planes were inadequate.

  On Tuesday BofA analysts maintained a Buy rating on the stock but lowered their price target to $255 from $275 per share.

  “Despite the recent issues, we believe BA has been making steady, if not slow, progress in addressing some of the internal shortfalls that led to its current situation,” said the analysts.

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  Tue, January 16, 2024 at 7:34 AM MST

  Stocks open lower to start shortened trading week

  Stocks opened lower on Tuesday as more bank earnings rolled in.

  Dow Jones Industrial Average (^DJI) declined 0.4%, while S&P 500 (^GSPC) slid 0.5%. The tech-heavy Nasdaq 100 (^NDX) led the declines, down roughly 0.2%.

  Goldman Sachs (GS) shared wavered despite soaring profits in the fourth quarter. Morgan Stanley (MS) stock declined more than 3% after its fourth quarter profit was hit by a one time charge.

  Shares of Tesla (TSLA) were down more than 2% on Tuesday after CEO Elon Musk said he wants about 25% of voting control over the electric vehicle giant.

  “I am uncomfortable growing Tesla to be a leader in AI & robotics without having ~25% voting control,” Musk wrote on an X post on Monday.

  The New York Federal Reserve’s Empire State Manufacturing Survey out Tuesday morning showed activity plunged to its lowest level since May 2020 this month.

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  Tue, January 16, 2024 at 6:51 AM MST

  Manufacturing activity plunges in New York

  A holiday-shortened trading week is kicking off with some terrible news on the manufacturing sector in New York.

  The New York Federal Reserve’s Empire State Manufacturing Survey out Tuesday morning showed activity plunged to its lowest level since May 2020 this month.

  The index, which measures the difference between respondents reporting higher or lower activity levels, fell to -43.7 in January. Economists had been expecting a reading in the negative single digits after the gauge hit -10.5 in December.

  “While the survey’s headline index has fluctuated in recent months, this outsized drop suggests January was a difficult month for New York manufacturers, with employment and hours worked also contracting,” said Richard Deitz, economic research advisor at the NY Fed.

  While not typically a market moving report — and a sample from just one region of the country — this reading from the NY Fed will likely add to fears from some investors that headline economic data is overstating the strength of the US economy as 2024 gets underway.