Shares of aerospace giant Boeing closed up 5.5% on Monday afternoon, adding 64 points to the 358-point gain of the Dow Jones Industrial Average, making it the largest contributor to Dow index.
Of course, the reason why Boeing shares (code: BA) rose in value was Covid. This virus has dominated commercial aerospace stocks trading for months.
The number of new Covid-19 cases diagnosed daily in the US tends to be lower. That is the first good news for aerospace.
The second data point comes from TSA. More than 830,000 passengers boarded commercial jets on Sunday. This is down from more than 2.6 million the same day a year ago, but it is also the highest number of passengers passing through TSA checkpoints at US airports since Covid-19 reduced demand. travel by commercial plane.
Along with the rise of Boeing, shares of US airlines rose about 7% on average. Boeing’s peer, Airbus (AIR.France), rose 4 percent in overseas transactions. Aerospace supplier stocksBarron’s songs that play 4% higher on average.
Covid-19 is the biggest problem the industry has faced, frankly, ever. For Boeing, Covid remains a bigger deal on its stake, even more so than the 737 MAX that has been landed worldwide since mid-March 2019 after two fatal crashes in five months.
Boeing, before the second MAX crash, had a market value of about $ 240 billion. Its market value today is around $ 100 billion, well below the Dow Industrials average market cap of about $ 294 billion.
However, Boeing could have a big impact on the index because the Dow is the price. For example, overall, Boeing might be worth 1/20 of the value of Apple (AAPL) in the market, but Boeing’s $ 179 share price gives it 40% of the impact of Apple’s stock price in Dow. Apple shares trade for around $ 450.
The Dow rose 1.3% on Monday, while the S&P 500 rose 0.3%. S&P is calculated by market cap. Apple is the company with the largest weight in the S&P 500, accounting for about 7% of that market benchmark.
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