Boeing Drops on Crash; Airbus, American, Alaska Airlines Fall

On this episode of Stock Movers:

- Boeing (BA) shares are lower this morning as a Boeing 787 Dreamliner aircraft operated by Air India crashed shortly after taking off in Ahmedabad, with 242 passengers and crew on board, and no reports of survivors. The crash occurred in a residential area and is considered one of the worst accidents involving the 787 Dreamliner, with Indian Prime Minister Narendra Modi calling it "heartbreaking beyond words".

- Airbus (AIR) shares are following Boeing lower on the plane crash in India. Boeing shares fell in premarket US trading, and the company is working to gather more information about the incident, which is the biggest commercial airline crash since 2014.

- American Airlines (AAL) is trading lower as well this morning following the crash. It tends to lead other American airliners lower, including Delta (DAL) and United (UAL) this morning.

- Alaska Airlines (ALK) are higher this morning as one of the few American airlines that are trending higher despite the crash. Alaska Airlines has less exposure to international flights than other American airliners.

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Episode Transcript

Speaker 1 (00:00):
Bloomberg Audio Studios, podcasts, radio news, The Stock Movers podcast,
your roundup of companies making moves in the stock market,
harnessing the power of Bloomberg data.

Speaker 2 (00:17):
Let's take a look at some stocks on the move today.
I'm Nathan Hager, now joined by Bloomberg's Critty, goopd and Kritty.
We have to start off with Boeing shares following the
incident in western India.

Speaker 3 (00:27):
Good morning, Good morning, Nathan, A sad day, in a
tragic one, certainly in India as well.

Speaker 4 (00:32):
You're seeing an immediate reaction in Boeing shares.

Speaker 3 (00:34):
BA is your ticker there, down a whopping eight percent
this morning, trading at one hundred and ninety seven dollars
a share and continuing to drop as I speak, Nathan.

Speaker 4 (00:44):
But it's not just Boeing that's worth keeping an eye on.

Speaker 3 (00:47):
The entire aviation sector is trading lower this morning. I'm
going to go piece by piece, if you'll bear with me,
starting right here in Europe, because of course, the other
contender alongside Boeing Airplanes is Airbus. So in French in
the French intraday session, Airbus, which the ticker is Aire
when it's FP on the Bloomberg terminal, trading lower by
about one percent on sympathy from that Boeing cell off

(01:09):
as well, trading at about one hundred and sixty one
euros there, and that's significant given that they tend to
trade opposite to one another as opposed to all together,
So keep an eye on what that relationship looks like
as well. Lockey Martin is another one. I'm not seeing
a ton of pre market trades just yet. That may
change at the open. Nathan LMT is your ticker actually
trading higher by four tenths of one percent, but again

(01:30):
very light volume there. This is another stock that trades
in line with Boeing shares, so keep an eye on
this one ahead of that market open.

Speaker 4 (01:37):
Four hundred and fifty.

Speaker 3 (01:38):
Eight dollars and change is where we are on that
share price. We should also mention several of the other
airlines in the US are trading lower as well. I'm
going to give you a laundry list of them here.
American Airlines AAL is your ticker down about one percent
this morning, trading at just shy of eleven dollars a share,
and this tends to move the entire airline complex lower.

Speaker 4 (01:59):
As well, so dell to is no exception.

Speaker 3 (02:01):
Dal is your ticker down by eight tenths of one
percent on that stock, trading at about forty nine dollars
and change there as well. Alaska Airlines is another major
contender in the domestic airline space in the United States.
Those shares are actually higher, and that simply might just
be a light volume question on one, but also their
exposure isn't as international as likes of Delta.

Speaker 4 (02:22):
And American alk hire by.

Speaker 3 (02:23):
Five tenths of one percent, trading about fifty two dollars
a share, and I'll end Nathan on United of course,
given that international exposure that United has. Ual is your
ticker down about one and a half percent this morning,
trading at seventy seven dollars a share.

Speaker 1 (02:39):
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