Boeing leads Dow to seventh straight day of gains
BY DAVID ROEDER March 11, 2013 8:44AM
FILE - In this Monday, March 4, 2013 file photo, rader Thomas Lyden works at the New York Stock Exchange, in New York. A strong U.S. jobs report helped propel Asian stock markets higher on Monday March 11, 2013, but shares in Europe were weighed down by renewed worries about the region's struggling economies. (AP Photo/Mark Lennihan, file)
Updated: March 11, 2013 4:56PM
The stock market Monday posted its seventh straight day of gains, getting some thrust from Chicago-based Boeing Co. in the process.
Boeing posted the day’s best return among stocks in the Dow Jones industrial average. Its shares rose $1.71, or 2.1 percent, to $82.94, their highest level in nearly five years.
The 30-stock Dow index rose to a record close of 14,447.29, gaining 50.22 points, or 0.4 percent, on the day. The Standard & Poor’s 500 index hit its highest point since October 2007 during the session, but closed about nine points off its record. The S&P closed up 5.04 points, 0.3 percent, at 1,556.22.
Boeing stock jumped after a company executive, speaking at a conference in Orlando, Fla., said strong demand is causing the company to raise production rates for commercial planes. The decision, said Randy Tinseth, vice president of marketing for the commercial planes unit, includes the 787 Dreamliner.
Tinseth said airlines continue to replace older jets that are less fuel-efficient. In a statement released by Boeing, Tinseth said “the market is strong and will continue to be strong. That’s why we’re confident as we raise our production rates.”
The Dreamliner has been grounded since a lithium-ion battery in a 787 operated by Al Nippon Airways overheated Jan. 16, forcing an emergency landing in Japan, and following a battery-related fire on a Japan Airlines plane in Boston. Reuters quoted Tinseth as saying Boeing has proposed to regulators a “permanent fix” that “provides three levels of protection for the airplane.”
The Nasdaq composite index gained 8.50 points, 0.3 percent, to close at 3,252.87.
Meanwhile, another widely followed measure of the markets, the Chicago Board Options Exchange Volatility Index, fell to its lowest point in six years.
Called the VIX, the index declined 1.03 points to 11.56, losing 8.2 percent.