China Eastern 737 Crash Likely Pilot Nosedive. Boeing Shares Jump.

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A passenger stands inside a terminal in front of a China Eastern plane at Shanghai Hongqiao International Airport in Shanghai.

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Qilai Shen/Bloomberg

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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.

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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 /

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