The Dow rebounded from back-to-back down sessions, climbing 0.3% on Wednesday, Jan. 31, to end trading at 26,149. Credit much of the gain to the strong performance of Boeing (BA), which jumped 5% to $354.41 a share. As the highest-priced component of the industrial average by far, the aerospace giant holds the biggest sway in the price-weighted Dow.
What Happened in the Stock Market Today?
The stock market survived a midafternoon swoon when the Fed, as expected, concluded its two-day meeting without raising short-term interest rates. However, inflation is a growing concern and at least three rate hikes are on the horizon in 2018 as Jerome Powell prepares to take over from outgoing Fed chief Janet Yellen. Investors increasingly have been fretting over the potential impact of rising rates on stocks.
Getting back to Boeing: The company is one of several big names on the earnings calendar this week, and its fourth-quarter numbers didn’t disappoint. Sales and profits beat expectations, and management issued an upbeat financial outlook for 2018. But Boeing’s value lies not only in its impressive share-price appreciation, but also in its ability to generate income for investors. The combination of growth and income makes it one of the best stocks in the Dow today.