16 December 2019 16:39
U.S. stocks are set to open the week higher in Monday trading. Boeing shares, on the other hand, are down because of reports 737 MAX production could be halted. British stocks are still ripping after the Boris Johnson election victory—the FTSE 100 Index is up 2.2% in overseas trading—and the Dow Jones Industrial Average looks set for a higher open too. Dow futures are up 48 points, or 0.2%, while S&P 500 and Nasdaq Composite futures are 0.4% higher. It's not all rosy, as some individual stocks are getting hit Monday morning.
Shares of embattled California utility PG&E (PCG) are down 23% in premarket trading after politicians objected to a bankruptcy reorganization plan. Boeing (ticker: BA) stock is falling in premarket trading, down about 2.4%. The Seattle Times reported that the commercial aerospace giant is considering temporarily shutting down 737 MAX production. Boeing cut its production rate from 52 a month to 42 a month in April. Since then hundreds of MAX jets have been built but not delivered. International Flavors & Fragrances (IFF) shares are down 6.3% in premarket trading. The company is merging with the DuPont de Nemours (DD) nutrition unit in a $45 billion deal, including debt. It's a case of the minnow swallowing the whale, or, in this case, a slightly smaller fish swallowing a slightly larger fish. Flavors & Fragrances annual sales are about $5 billion and the DuPont division's sales are about $6 billion. The Flavors & Fragrances CEO will run the combined company but DuPont shareholders will own more than half of the new entity. It's not all bad news for individual stocks. DuPont shares, for instance, are up 3.4%, even if Flavores & Fragrances is dropping. And Micron Technology (MU) stock is up 2.7% in premarket trading. Shares were upgraded to the equivalent of Buy at brokerage firm Susquehanna. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.