Dow Jones Industrial Average falls 255 points
Boeing, JNJ and Netflix zap market’s earnings enthusiasm
Sharp declines in Boeing and Johnson and Johnson were a drag on the Dow. Boeing fell 6.79% after the Federal Aviation Administration said the aerospace giant withheld “concerning” pilot messages about the 737 Max’s safety. A baby-powder recall pushed Johnson & Johnson down more than 6%. Meanwhile, Netflix dropped more than 6%, pressuring other Big Tech stocks such as Facebook, Amazon and Alphabet. Those declines zapped some of the market’s enthusiasm around corporate earnings from earlier in the week. The earnings season started with most companies posting earnings that topped analyst expectations.
L Brands drops, Intuitive Surgical surges
Shares of Victoria’s Secret-parent L Brands plunged nearly 10% and were the biggest decliners in the S&P 500. The stock dropped after an analyst at Credit Suisse downgraded it to underperform, citing a “multitude of challenges” the company is facing. Meanwhile, better-than-expected earnings results lifted Intuitive Surgical nearly 7%.
What happens next?
Around a quarter of the S&P 500 is slated to report quarterly numbers next week, including Amazon, Caterpillar and Intel. Consumer sentiment and durable goods orders will also be in focus for investors.