Dow Zips Higher After Boeing Dumps CEO & Ignites BA Stock Surge

  • The Dow rose nearly 100 points on Monday.
  • Boeing stock surged after CEO Dennis Muilenburg’s firing, offsetting ugly manufacturing data.
  • Vanguard warns that investors face coin-flip odds of a stock market correction in 2020.

The Dow Jones sped higher during the last full trading session before the Christmas holiday. But as investors bask in the self-fulfilling prophecy of a “Santa Claus rally,” Vanguard’s top economist warns that the stock market faces severe risks heading into 2020.

Dow Spikes Amid Boeing Surge

Wall Street’s three major kicked off the holiday-shortened trading week on track to close at new all-time highs.

The Dow Jones Industrial Average climbed 92.9 points or 0.33% to 28,547.99, notching its third straight session gain.

The Dow zipped higher, mainly due to a massive recovery from Boeing stock. | Source: Yahoo Finance

The Dow’s rally was headlined by its heaviest component, Boeing. BA shares surged more than 3.5% after the beleaguered aerospace giant fired its CEO, Dennis Muilenburg.

The S&P 500 rose 0.08% to 3,223.85, and the Nasdaq climbed 0.15% to 8,938.64 to round out a positive day for US stocks.

Not even ugly manufacturing data could stunt the bullish mood. Durable goods orders plunged 2% in November, the biggest decline in six months. Economists had expected an increase of 1.5%, but a massive decline in defense-related orders sapped those predictions. Even worse, October’s data were revised downward (+0.2% from an initial reading of +0.6%).

US durable goods orders plummeted to a six-month low. Economists had expected a substantial rebound in this manufacturing metric. | Source: Trading Economics

Stock Market Correction Faces Coin-Toss Odds in 2020

The Dow and broader stock market seem to be closing an already-spectacular 2019 with a “Santa Claus rally,” but investors shouldn’t necessarily expect those gains to continue in 2020.

That’s according to Joseph Davis, the chief economist and chief investment strategist at…

Source Link