Boeing Stock Drags Dow as Analyst Steps to Sidelines

What Happened?

Boeing Co. (BA) shares plunged 2.6% on Tuesday, dragging down the Dow Jones Industrial Average. The sell-off followed a downgrade by Cowen analyst Helane Becker, who moved her rating to "market perform" from "outperform."

Why It Matters

Becker's downgrade is a significant blow to Boeing, which has been struggling with production delays and safety concerns. The analyst cited the company's "lack of clarity" on its 737 MAX timeline, as well as its "limited visibility" into cash flow recovery.

Market Impact

The Dow Jones Industrial Average fell 150 points on Tuesday, largely due to Boeing's decline. The stock's drop also weighed on the broader market, with the S&P 500 index losing 0.5% and the Nasdaq Composite index slipping 0.2%.

Analyst's View

Becker said that she is concerned about Boeing's ability to recover from its recent setbacks. She wrote in a research note that the company's "trajectory has become less clear" and that she is "increasingly cautious" about its prospects.

Boeing's Response

Boeing did not immediately respond to a request for comment.