What's moving markets todayBy CNN Business
Boeing (BA) fell sharply after the US Federal Aviation Administration issued an emergency order banning the use of the company’s 737 Max 8 and 9s in the country. But the stock bounced back and finished the day with a 0.5% gain. Boeing is the highest-priced constituent in the Dow.
Rite Aid (RAD) jumped 6% after the drug store chain announced it would replace three top executives, including the CEO. But the stock is still only worth 72 cents.
The British pound rallied 1% after UK lawmakers rejected a “no-deal” Brexit.
After nearly every country in the world determined that Boeing's 737 Max airplane should be kept on the ground, Boeing finally relented on Wednesday afternoon and said, in a statement, that it would tell the FAA to ground its entire fleet.
It cited no additional findings or data, rather said the plane should be suspended "out of an abundance of caution and in order to reassure the flying public of the aircraft’s safety."
Dennis Muilenburg, president of Boeing, said:
Boeing, the company said, makes this recommendation and supports the decision by the FAA.
Here's the FAA's statement on grounding the planes:
The United States has joined most of the rest of the world and has decided to halt flights of Boeing's 737 Max 8 and 9 planes following the tragic Ethiopian Airlines crash Sunday.
Shares of Boeing (BA), which had been trading higher earlier in the day, reversed course and fell nearly 3% following the announcement before rebounding. But the stock has now fallen about 11% since Friday -- a move that has wiped out nearly $30 billion in the company's market value.
Vera Bradley's floral-printed clothing and accessories might be an off putting to some, but they're pretty to shoppers — and investors.
The stock is soaring after posting a strong earnings report. The woman's apparel company beat analysts' expectations on its fourth-quarter profit and revenue.
Vera Bradley's (VRA) shares spiked 20% Wednesday and are up 60% for the year:
Markets are in positive territory. Here's where they stand:
- The Dow is up 180 points, or 0.70%
- Nasdaq is up 70 points, or 0.92%
- S&P 500 is up 24 points, or 0.88%
And here's a check on today's movers:
The Environmental Protection Agency said that Fiat Chrysler (FCAU) has agreed to voluntary recall 900,000 vehicles that don't meet US federal emissions standards. That sent shares down 1%.
"This recall is the result of in-use emissions investigations conducted by EPA and in-use testing conducted by FCA as required by EPA regulations," the EPA said in a statement.
The voluntary recall effects vehicles going back as far as 2011. Here's the list:
- 2011-2016 Dodge Journey
- 2011-2014 Chrysler 200 / Dodge Avenger
- 2011-2012 Dodge Caliber
- 2011-2016 Jeep Compass / Patriot
The EPA said FCA will contact owners to schedule an appointment to fix the vehicle’s catalytic converter.
FCA told CNN Business that the recalls have "no safety implications" and that the automaker wasn't fined:
"This issue was discovered by FCA during routine in-use emissions testing and reported to the agency. We began contacting affected customers last month to advise them of the needed repairs, which will be provided at no charge," the company said.
JPMorgan Chase (JPM) is opening 90 bank branches in new markets this year, the company said Wednesday.
Chase banks will arrive in US cities like Charlotte, Kansas City, Pittsburgh, Nashville and Minneapolis beginning this summer. The bank is also adding branches close to universities like Auburn in Alabama.
The announcement is part of a broader plan to open 400 branches in new markets by the end of 2022. The goal: to aggressively compete for deposits.
Adidas (ADDDF) said there's so much demand for its clothing and shoes that its supply chain can't keep up. That could hurt sales in the US, one of its most important markets, in the first half of this year.
The warning sent shares down 3% Wednesday:
CEO Kasper Rorsted told CNBC that Adidas is dealing with a "demand problem," adding:
American Airlines (AAL) said in a new statement that it's not grounding its 24 Boeing 737 Max 8 planes because it has not had issues with them.
Here's the full statement, obtained by CNN's Shimon Prokupecz:
"In November 2018, we received the Boeing-issued Flight Crew Operations Manual Bulletin and subsequently issued FAA Emergency Airworthiness Directive, which applied to all of the B737 MAX 8 aircraft currently in our fleet. We complied with the Emergency Airworthiness Directive, which reiterated procedures already in the Quick Reference Handbook (QRH) for non-normal events. The Emergency Airworthiness Directive reiterated existing, well-established procedures for MAX 8 pilots. At American, we have not had similar issues regarding an erroneous Angle of Attack during manual flight.
Our fleet of 24 MAX 8 aircraft – first went into operation in November 2017 (N324RA & N304RB) – have a combined total of more than 46,400 operating hours and nearly 18,000 cycles."
Shares are up 1% in early trading.