News of a tragic 737-800 crash boosted share prices
China Eastern Airlines
Probably not caused by a plane error.
The Wall Street Journal reported Tuesday, citing U.S. aviation safety officials, that the crash was probably due to an intentional sniffing on the flight from East China Kunming to Guangzhou. It is unknown at this time what he will do after leaving the post.
Boeing (Ticker: BA) and China Eastern Airlines (CEA) did not immediately respond to requests for comment.
Shares of both companies rose in Tuesday’s trade, but the overall market remained the same. China Eastern stock rose about 1%. The
Dow Jones Industrial Average
Increased by about 1.7% and 1.2%, respectively.
Boeing shares rose 6.3% to about 1 131.86. The shares added about $ 3 shortly after the journal’s story was published.
The Boeing stock crashed roughly $ 12 to the lowest point of the trading day after the crash. Shares closed at $ 185.90 on March 21st, down about $ 7 or 3.6%. Shares recover most of that loss the next day and reach pre-crash highs about a week later.
It could cost a few more dollars for any overhangs related to the Boeing stock crash, although the $ 3 move looks right. Coming to trading on Tuesday, there have not been many updates since the end of March. China’s Civil Aviation Administration released a preliminary report on April 26, but it does not contain much new information.
Shares of both China Eastern and Boeing have traded lower since the crash.
China Eastern stock lost about 12%. Boeing shares lost about 32%. The crash, however, is probably not responsible for both drops. The S&P 500 is down about 9% from that span. What’s more, Boeing’s first-quarter earnings report disappointed investors, hitting shares. For China East, the revival of Kovid has hit demand for air travel.
The income disappointment came April 27th. Shares fell 7.5% that day.
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