Positive US-China trade chatter opened higher US Futures on Monday. China claimed both countries made “substantial progress” over the weekend.
Dow went up 45 points or 0.2%, the S&P 500 upped 13 points or 0.5%, and the Nasdaq composite leaped 49 points or 0.6%.
Boeing dragged on the Dow, as the company fell 5% after Credit Suisse and UBS downgraded the company to neutral from buy
Drug companies mostly declined over their role in the opioid crisis. McKesson Corporation, AmerisourceBergen, and Cardinal Health slid nearly 4%. Teva Pharma Industries, on the other hand, rose 2.3%.
Multinational oil corporation Halliburton jumped 6.6% after posting a decline in North American share drilling.
Beauty company Coty jumped 12.4% when it announced its plan to sell its beauty business.
Meanwhile, the US dollar index opened flat at 96.998.
737 Dragged Futures Down
Dow Futures fell 5% when brokerage companies Credit Suisse and UBS downgraded the airline from “buy” to “neutral.” Reports claim the airline’s pilots were aware of safety issues with the 737 MAX’s flight control software since 2016.
Two tragic crashes from the same planes brought up a common problem: the Maneuvering Characteristics Augmentation System (MCAS). In both cases, pilots were unable to foresee the problems the system brought up.
One of 400 737 MAX’s pilots sued Boeing for an “unprecedented cover-up” for MCAS. The said pilot, namely “Pilot X,” claimed the airline didn’t train their pilots for the augmentation system.
Boeing revealed their executives did discuss potential MCAS problems before the plane was certified last October 19.
Other controversies, including an autopilot problem with the Boeing 737 MAX, also pulled the US futures down.
Boeing admitted to falsifying documents relating to a 787 sold to Air Canada. The airline previously said they completed its manufacturing. They didn’t.
The aircraft needed to make an emergency landing after what they claimed as a fuel leak.
The airline also claimed they initiated a long-term corrective action. The initiative included formal training and communication on personal accountability in the manufacturing process.