Dow futures are sliding and Boeing is to blame
Dow futures are pointing at a slightly lower open on Thursday after Boeing shares dropped in premarket trading.
The plane manufacturer has been struggling with the crisis surrounding its top-selling 737 Max airplane.
The aircraft, which was involved in two recent deadly crashes and has since been grounded around the world, received an updated computer system. But a new flaw has been discovered while the new system was tested in simulator flights.
Boeing shares are down 2.6% in premarket trading, according to Refinitiv. And its underperformance is weighing on the Dow.
Dow futures are little changed in negative territory, having recovered slightly, with about an hour to go until the market opens. Futures for the S&P 500 and the Nasdaq Composite are in the green, up 0.2% and 0.4%, respectively.
Counting down to Trump meetings at the G20 summit
Aside from Boeing, the G20 meeting is front and center of investors minds.
President Donald Trump has arrived in Japan for the summit at which he will meet multiple leaders on the sidelines to talk trade. Most importantly, investors are awaiting Trump’s meeting with China’s President Xi Jinping.
China insists that the United States would cancel its ban on Chinese tech firm Huawei as part of a trade agreement, according to The Wall Street Journal. In May, Trump ordered US companies to refrain from using technology from any foreign firms deemed a national security threat, which was viewed as a ban on Huawei specifically.
Earlier Thursday, Trump said he would also meet with India’s Prime Minister Narendra Modi in a tweet. India ramped up tariffs on US imports last week. Trump said this was “unacceptable and the tariffs must be withdrawn,” in his tweet.
A positive outcome from the Trump-Xi meeting could spark a rally in riskier assets, like stocks, and boost hopes that the end of the trade spat is in sight. On the flipside, further escalation with additional tariffs waiting in the wings could weigh on stocks and drive safe haven investments like gold and US treasuries higher.
