Here's Why GE Aerospace Stock Slumped Today
GE Aerospace's (NYSE: GE) shares declined by more than 5% as of 11 a.m. ET today. It's not often you can blame a stock price decline on an analyst downgrade of another company, but in this case, it's applicable. Wells Fargo's downgrade of GE's principal partner, , sent a shock wave through both companies' share prices.
A Wells Fargo analyst downgraded Boeing stock to underweight, arguing that Boeing's cash-flow difficulties will run into the next investment cycle for the airplane manufacturer. That's an issue for GE because it's the leading engine provider to Boeing. Its joint venture, CFM International, provides the sole engine on the Boeing 737 MAX, and GE provides the sole engine the Boeing 777X and one of two engine options on the 787.
Image source: Boeing.
Source Fool.com
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