Industrial and Transportation Stocks Struggle as Boeing Faces Quality Issue

Shares of industrial and transportation companies took a hit as Boeing encountered more issues with its aircraft. The aerospace giant's stock plummeted after its supplier, Spirit AeroSystems, acknowledged a quality problem affecting certain models of the 737 fuselage it manufactures. Despite this setback, Spirit AeroSystems will continue supplying units to Boeing, as there is no immediate flight safety concern associated with the issue.

On a positive note, orders for durable goods showed growth in July for the third consecutive month, despite the recent turbulence related to Boeing. This indicates a potential stabilization within the struggling industrial sector of the U.S. economy.

Excluding transportation, durable-goods orders experienced a 0.5% increase in July. It's worth noting that Boeing orders often fluctuate during the summer months, which can distort the true condition of U.S. manufacturing. However, considering headline orders that include transportation, there was a 5.2% decline last month, as reported by the government.

In unrelated news, the Justice Department has filed a lawsuit against SpaceX, accusing the company led by Elon Musk of discriminating against refugees and individuals who have fled their homelands. According to the Justice Department, SpaceX discouraged asylum seekers and refugees from applying for jobs between September 2018 and May of last year. The company refused to hire them or review their applications.