Despite trader hesitancy, the Dow moved higher by 0.5% on Boeing’s gains
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Key Takeaways
- Ahead of next week’s Federal Reserve rate decision, the Dow moved up on low trading volume.
- Boeing shook off Dreamliner delivery delays to lead the Dow higher.
- Dow Chemical and Visa were the worst-performing of the 30 Dow stocks.
Despite muted trading volumes, the Dow Jones Industrial Average rose 0.5%, or 169 points, as investors digested data that suggested rising interest rates may finally be hitting the labor market.
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The Dow moved higher on trading volume that was about two-thirds of normal levels. Tech stocks helped drive the Nasdaq up 1%, the best-performing of the major indexes, with the S&P 500 closing up 0.6%.
Unemployment claims jumped to their highest levels since October 2021—data that could encourage the Federal Reserve to hold interest rates steady at its policy meeting next week.
Boeing (BA) rose 2.9% to lead the Dow higher, despite yesterday’s news of defects with its 787 Dreamliner and a lawsuit filed today by a Colorado company alleging the aerospace giant stole its intellectual property.
Salesforce (CRM) was up 1.9%, rebounding from yesterday’s drop on news of executive reshuffling.
UnitedHealth Group (UNH) shares climbed 1.6% after it announced it would boost dividend payments by 14% to $1.88 a share. Shares of Merck & Co. (MRK) rose 1.6% as it rebounded from losses earlier in the week triggered by its lawsuit against the federal government over drug price negotiations.
Chemical maker Dow (DOW) was the worst performer of the Dow 30 stocks, moving lower by about 2%. Nike (NKE) fell 0.9%.
For the second day, investors’ worries over legislation that would give merchants more options when processing credit card transactions helped sink shares of Visa (V), which fell 1%. American Express (AXP) fell 0.25%.
Despite Saudi Arabia’s pledge this week to lower production levels, oil prices slipped about 2% today, sending shares of Chevron (CVX) down 0.4%.