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US-STOCKS-MARKETS
Wall Street rallies amid Brexit, Boeing turmoil
NEW YORK, March 14, 2019 (BSS/AFP) – Wall Street held on to solid gains on
Wednesday, rallying as British lawmakers ruled out a no-deal Brexit and
President Donald Trump became among the last world leaders to ground Boeing’s
737 MAX aircraft.
Investors also were cheered by economic data showing the US manufacturing
sector had a boost in January and wholesale inflation remained tame in
February.
Shares in Boeing bounced erratically after Trump’s decision to ground all
of the top-selling 737 MAX aircraft, to which much of the world’s airspace is
now closed.
But the stock price clambered back into the green for the day, rising 0.5
percent to $377.12, putting it up for the first time in three days but still
down nearly 11 percent since before Sunday’s deadly crash in Ethiopia.
The Dow, where Boeing’s shares are heavily weighted, rose by triple
digits, closing up 0.6 percent at 25,702.89.
Meanwhile, the broader S&P 500 and tech-heavy Nasdaq both gained 0.7
percent to close at new highs for 2019, settling at 2,810.92 and 7,643.41,
respectively.
In Britain, lawmakers voted to reject a possible no-deal exit from the
European Union, which is still due to occur in just over two weeks, after
earlier this week rejecting the divorce deal negotiated by Prime Minister
Theresa May.
US government data showed the weakening US manufacturing sector had a
modest boost in January while wholesale inflation was slower than expected in
February.
Analysts said the markets’ indifference to multiple apparent dangers on
the horizon — including weakening corporate revenues, a slowing global
economy and Brexit — was because central banks had clearly signaled a pause
on interest rate increases.
“Overall, part of the answer is we have a Fed that has made it clear that
they do not expect to raise rates in the short term or mid-term,” Quincy
Krosby of Prudential Financial told AFP.
“Right now, the market does not see a rate hike this year.”
BSS/AFP/HR/0958