Stephen Brashear/Getty Images Boeing shares trade down more than 7% early Tuesday after a slew of countries grounded the 737 Max 8 aircraft. On Sunday, Boeing's 737 Max 8 was involved in its second disaster in five months. Boeing's stock continues to weigh on the Dow Jones Industrial Average, shaving off more than 90 points. Watch Boeing trade live. Sunday's crash of a Boeing 737 Max 8 aircraft operated by Ethiopian Airlines continued to pressure Boeing's stock Tuesday morning, with shares trading down more than 7%. Boeing shares are under pressure for a second straight day after sliding 5.3% on Monday. The sell-off in Boeing, which commands a weighting of more than 10% of the Dow Jones Industrial Average, has wiped out more than 190 points from the index on Tuesday. Monday's losses wiped out 81 Dow points. The Dow, which was down less than 5 points points in Tuesday early trading, would have been trading significantly higher if not for Boeing's losses. Boeing had previously driven 30% of the gain in the Dow this year. The Dow is a price-weighted index, meaning the company with the highest share price has the heaviest weighting. Even with Tuesday's losses, Boeing's stock price remained the highest in the index, at $370. Unlike the Dow, the S&P 500 is weighted by market cap, meaning the largest company, Microsoft, has the heaviest weighting. By comparison, Boeing commands the 15 th-biggest weighting of S&P 500 names. Both Sunday's crash of an Ethiopian Airlines flight, which killed all 157 on board, and the fatal crash of a Lion Air flight in Indonesia in October involved Boeing's 737 Max 8 plane. More than a dozen airlines as well as the governments of China, Indonesia, Australia and Singapore have grounded the aircraft. Boeing has more than 5,000 orders outstanding for the 737 Max 8 aircraft, which is expected to be a large driver of business in the years ahead. Boeing's stock was up 15% this year after Tuesday's sell-off. Business Insider NOW WATCH: There's a secret room behind Mount Rushmore that's inaccessible to tourists<doc-sep>Reuters Boeing's stock was down slightly after President Donald Trump announced the grounding of the 737 Max aircraft. Shares were holding their own given wide expectations of a grounding and limited visibility on how business will be impacted. Boeing's stock was already down 17% from the 2019 highs. Watch Boeing trade live. Boeing's stock gained 0.46% Wednesday after President Donald Trump announced the grounding of all 737 Max aircrafts. The emergency order was announced after widespread calls by politicians on both sides of the aisle to cease flights of the aircraft until further investigation. Upon hearing the news of the 737 Max's grounding, investors might have expected Boeing shares to fall sharply. Boeing's stock is still up 16% this year, after all. But there are a few reasons why the stock held up. First, Boeing had a very strong start to the year. The company previously reported strong fundamentals in its fourth quarter earnings, driving its stock up 38% to its 2019 peak. Shares then fell 17% from their March 1 peak prior to the grounding. And hedging costs for Boeing have also increased, indicating traders were already worried about the possibility of volatility. Also notable, analysts have been saying that any grounding of the aircraft would likely have a limited impact on Boeing's long-term business. In a note published Wednesday morning, Morgan Stanley analyst Rajeev Lalwani said he expected any grounding of the planes to be temporary, and that the stock-price volatility surrounding the crashes represented a buying opportunity. Airline orders are long-cycle and are subject to contract, making it somewhat difficult to switch manufacturers. For these reasons, Morgan Stanley said the worst-case scenario was a need for corrective action rather than wholesale cancellations of the order book. "Ultimately, we are of the view that implications are likely to be short-lived, covering weeks and months as opposed to quarters and years, pending further clarity on safety and any necessary fixes," he wrote. Lalwani maintained his "overweight" rating and $500 price target - 32% above where shares were trading Wednesday. Markets Insider NOW WATCH: Everything we know about Samsung’s foldable phone<doc-sep>Every day, Wall Street analysts upgrade some stocks, downgrade others, and "initiate coverage" on a few more. But do these analysts even know what they're talking about? Today, we're taking one high-profile Wall Street pick and putting it under the microscope... Let's face it, Boeing (NYSE:BA) investors. We knew this news was coming. We knew this would happen. Boeing stock just got downgraded. Guess who just downgraded Boeing? SteetInsider.com reports that yesterday, two analysts -- Germany's DZ Bank and America's Edward Jones -- both downgraded shares of Boeing, to sell and hold, respectively. Now, neither of these analysts are particularly high-profile names in the world of stock ratings -- not at the level of a Citigroup or JPMorgan, at least. Neither analyst has said a lot publicly about why they are downgrading Boeing stock. But it's not too hard to guess why. The likely reason Boeing got downgraded My Fool.com colleague Lou Whiteman has the details: "An Ethiopian Airlines flight crashed shortly after takeoff from Addis Ababa on Sunday, killing all 157 people on board. While the investigation into the crash is still in its early stages, and it is too soon to determine what happened, the incident looks similar to a Lion Air 737 Max 8 crash last October off the coast of Indonesia that killed all 189 people on board." And that's really the problem in a nutshell. In less than six months, two units of Boeing's most profitable plane -- the best-selling commercial airliner in history, for Boeing or any other company -- have crashed. Government regulators are concerned. So far, aviation regulators in Australia, the United Kingdom, Malaysia, Norway, Singapore, and China have ordered all 737 Max airplanes to cease flying in their airspace. Flyers are worried, too. Marketwatch is tracking a growing trend on Twitter of passengers with paid-for tickets looking for advice on how to avoid flying on Boeing's 737. And investors? They're terrified. Boeing stock plunged as much as 13.5% in early trading Monday, before closing the day down 4.9%. It's down another 4.9% already today. Check out the latest earnings call transcript for Boeing. Pouring salt into the wound President Trump, let's not forget to mention, isn't helping matters. This morning, the Tweeter in Chief poured salt in the wound, tweeting: Airplanes are becoming far too complex to fly. Pilots are no longer needed, but rather computer scientists from MIT. I see it all the time in many products. Always seeking to go one unnecessary step further, when often old and simpler is far better. Split second decisions are.... — Donald J. Trump (@realDonaldTrump) March 12, 2019 ....needed, and the complexity creates danger. All of this for great cost yet very little gain. I don't know about you, but I don't want Albert Einstein to be my pilot. I want great flying professionals that are allowed to easily and quickly take control of a plane! — Donald J. Trump (@realDonaldTrump) March 12, 2019 Way to support America's export economy, Mr. President! What investors should do now All this being said, I don't want to minimize the severity of the risks here. Whether or not Boeing is ultimately found to have done something wrong to contribute to these two crashes, the company is going to take a significant reputational hit. Flyers' faith is shaken. Airlines' faith in the 737 Max may be, too, and that could impact sales, or at the least, give airline plane buyers negotiating leverage to extract price concessions from Boeing. That being said, Boeing's profit margin is at an all-time high right now, with S&P Global Market Intelligence showing the company's commercial airplanes division earning a 13% operating profit margin last year. Boeing can afford to roll its prices back a bit if its customers insist -- and might even be willing to, as part of a strategy to win more sales and grab more market share from Airbus. And despite all the risks, one quote from today's Wall Street Journal may be telling: The Federal Aviation Administration is "expected by the end of April to mandate a software fix for an automated flight-control system that played a central role in the first crash involving the" 737 Max. So without minimizing the tragedies that have already occurred, it really looks like whatever problem the 737 Max may have, America's supreme aviation regulator thinks it's something that can be repaired with a software patch. In short, this is a fixable problem. It's not something that is going to hold Boeing down in the long term. And at less than 16 times trailing free cash flow, I still think Boeing stock is a buy.<doc-sep>
Markets Insider Boeing stock dropped more than 2% in trading Wednesday afternoon after President Trump ordered the grounding of the 737 Max aircraft. The emergency order follows calls by a number of US lawmakers to ground the plane. Watch Boeing trade live. President Trump ordered the grounding of all 737 Max aircraft in the US Wednesday afternoon. Boeing's stock was down more than 2% on the news with the stock trading at its lowest levels since January 29. The move to ban the plane follows calls by a number of US lawmakers to ground the plane on Tuesday, after two crashes of the 737 Max aircraft in the past five months. Both Sunday's crash of an Ethiopian Airlines flight, which killed all 157 on board, and the fatal crash in October of a Lion Air flight in Indonesia, involved Boeing's 737 Max 8 plane. More than a dozen airlines as well as the governments of China, Indonesia, Australia, and Singapore have grounded the aircraft. Boeing has more than 5,000 orders outstanding for the 737 Max 8 aircraft, which is expected to be a large driver of business in the years ahead. The continued sell-off in Boeing will have an outsized impact the Dow Jones Industrial Index. Boeing commands a weighting of more than 10% of the Dow Jones Industrial Average. Boeing's volatility due to the 737 Max crashes has already caused the Dow to underperform the S&P 500 this year. Boeing had previously driven 30% of the gain in the Dow this year. The Dow is a price-weighted index, meaning the company with the highest share price has the heaviest weighting. Even with Tuesday's losses, Boeing's stock price remained the highest in the index, at $366. Unlike the Dow, the S&P 500 is weighted by market cap, meaning the largest company, Microsoft, has the heaviest weighting. By comparison, Boeing commands the 15th-biggest weighting of S&P 500 names. NOW WATCH: Everything we know about Samsung’s foldable phone