Stock Price: Boeing and Reputational Negatives

stock price: A Nairobi-bound Boeing 737 MAX 8 operated by Ethiopian Airlines crashed minutes after takeoff from the country's capital Addis Ababa on Sunday, killing all 157 on board, according to The Japan Times. The same model, flown by Lion Air, crashed off the coast of Indonesia in October, killing all 189 on board. The drop around 7 percent in late morning trade wiped nearly 16 billion off Boeing's market value, marking an abrupt reversal for a stock that had been the runaway top performer this year in the Dow Jones Industrial Average. ; With a stock price near 400 a share, it was by far the largest drag on the price-weighted blue chip index on Monday. The grounding of the 737 MAX by China, Indonesia, and Ethiopian are near-term reputational negatives for Boeing that could impact sales, particularly if the FAA follows suit and also grounds the plane, Cai von Rumohr, analyst at Cowen & Co., said in a research note, referring to the U.S. Federal Aviation Administration. Since U.S. stocks began rebounding from the financial crisis in March 2009, Boeing shares have delivered a total return, including reinvested dividends, of nearly 1,600 percent, four times the performance of the full index. Still, von Rumohr and other analysts said the accident should not pose a long-term risk to a stock that has delivered the richest total return among the 30 stocks in the Dow over the 10 years of the current bull market. (news.financializer.com). As reported in the news.