boeing (New York Stock Exchange: BA) led weekly declines among stocks of the largest U.S. industrial companies, as stocks fell for a second straight week amid investor concerns about inflation data.
The Industrial Select Sector SPDR ETF (NYSERCA:XLI), whose holdings include some of the largest American companies in the sector, fell less than 1% during the week.
The performance mirrored the performance of other benchmark indices, with the Standard & Poor's 500 stock index (SP500) falling less than 1%. The Dow Industrial Average (dji) and 2.2% and the Nasdaq Composite (COMP.IND) also fell less than 1% during the week.
Consumer and producer price data indicated that inflation was higher than economists had predicted. The reports rattled investors looking for signs that the Federal Reserve will soon begin cutting interest rates. Federal Reserve Chairman Jerome Powell said in previous remarks that policymakers want inflation to fall to a target of 2% annually.
Boeing: More safety concerns
Boeing (BA) ended the week down 8.7%, although it managed to turn a profit on Friday. The planemaker faced further concerns about the safety of its planes after 50 people were injured when a Boeing (BA) 787 Dreamliner briefly fell on Monday during a Latam Airlines flight from Sydney to Auckland.
Concerns about potential technical problems boiled down to the possibility that a flight attendant accidentally pressed a switch in the pilot's seat, pushing him toward the cockpit controls. Boeing (BA) sent a memo to 787 operators on Thursday, warning them to inspect pilots' chairs for loose switch covers and instructing them how to shut down the pilot's seat engine if necessary.
Another news report indicated that United Airlines (NASDAQ:UAL) was looking to replace some of its Boeing (BA) aircraft orders with planes made by European rival Airbus (OTCPK:EADSY) (OTCPK:EADSF). Boeing (BA) is not allowed to increase production of its popular 737 Max planes until the US Federal Aviation Administration is satisfied that the company has improved its factory operations and safety controls. The agency stepped up scrutiny of Boeing (BA) and its supply chain following the mid-air explosion of a door plug on a 737 flown by Alaska Airlines (New York Stock Exchange:ALK) flight in January.
Deere job cuts
Amid broader market declines, Deere (New York Stock Exchange:DE) gained 2.4% for the week to be the best performer among the top holdings of the SPDR Industrial Select Sector ETF (XLI).
The farm machinery maker is laying off about 150 people at a factory in Ankeny, Iowa, the Des Moines Register reported Tuesday. The plant is said to employ about 1,700 employees, of which 1,136 are dedicated to production.
Top Holdings of Select Industrial Sector SPDR Fund | ||
Name | Heart | ETF weighting (as of March 14) |
General Energy | (New York Stock Exchange: GE) | 4.8% |
Caterpillar | (New York Stock Exchange: CAT) | 4.6% |
Uber Technologies | (New York Stock Exchange:UBER) | 4.2% |
Union Pacific Corp | (New York Stock Exchange: UNP) | 4.0% |
RTX | (New York Stock Exchange:RTX) | 3.5% |
Honeywell International | (NASDAQ:HON) | 3.4% |
Eaton | (New York Stock Exchange:ETN) | 3.2% |
United Parcel Service | (New York Stock Exchange: UPS) | 2.9% |
boeing | (LICENSED IN LETTERS) | 2.7% |
Deere | (OF) | 2.7% |
Automatic data processing | (NASDAQ: ADP) | 2.6% |
Lockheed Martin | (New York Stock Exchange:LMT) | 2.5% |
Waste management | (New York Stock Exchange:WM) | 2.0% |
CSX | (NASDAQ:CSX) | 1.9% |
Illinois Tool Works | (New York Stock Exchange:ITW) | 1.9% |