A passenger stands inside a terminal in front of a China Eastern plane at Shanghai Hongqiao International Airport in Shanghai.
Qilai Shen/Bloomberg
Boeing shares rose on news that the tragic crash of a 737-800 operated by China Eastern Airlines likely wasn’t caused by a plane malfunction.
The Wall Street Journal reported Tuesday that the crash of China Eastern flight 5375 was likely due to an intentional nosedive.
Boeing (ticker: BA) and China Eastern Airlines (CEA) didn’t immediately respond to requests for comment.
Shares of both companies were higher but so was the overall market. China Eastern stock gained 1.5%. The S&P 500 and Dow Jones Industrial Average rose 1.5% and 1%, respectively.
Boeing shares have gained 5.1% at $130.40. Shares added about $2 immediately following the Journal story.
Since the March 21 crash, China Eastern stock has lost about 12%. Boeing shares have lost about 32%. The crash, however, probably isn’t to blame for much of either drop. The S&P 500 is down about 9% over that span. What’s more, Boeing’s first-quarter earnings report disappointed investors, hurting shares. For China Eastern, a resurgence of Covid in China has hurt demand for air travel.
Boeing stock dropped roughly $12 at its lowest point on the day following the crash. Shares closed March 21 at $185.90, down about $7 or 3.6%. Shares recovered most of that loss the next day and eclipsed the pre-crash high about a week later.
The earnings disappointment came on April 27. Shares finished down 7.5% that day.
Write to Al Root at [email protected]
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Credit: www.marketwatch.com /