One stock is responsible for a big chunk of the Dow’s gains this year (BA)
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A single company, Boeing, hasaccounted for nearly 30% of the Dow Jones Industrial Average’s year-to-date gainof 11.5%, according toBespoke Investment Group.

Boeing shares have soared 34% this year,contributing 812 pointsof the index’s 2,807-point gain so far this year. Without Boeing’s contribution, the index would be up about 8% YTD.

DJIA YTD attributionBespoke Investment Group

The index’s outsized gain is driven by Boeing having the heaviest weighting, 11.4%, among the Dow’s 30 stocks. The Dow is a price-weighted index, meaning the company with the highest share price, Boeing, has the heaviest weighting. Boeing’s stock price is the highest in the index and the only one over $400.

Unlike the Dow, the S&P 500 is weighted by market cap, meaning the heaviest weighting. By comparison, Boeing commands the 15th biggest weighting of S&P 500 names. 

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Such effects cut both ways and a 10% move in Boeing’s stock would move the DJIA index by over 250 points. The second-highest contributor to the Dow is , responsible for about 8% of the YTD gain.

Boeing shares were trading near all-time highs thanks to strong fundamentals and solid earnings growth based onthe planned launch and development of the 777X,the largest and most-efficient twin-engine plane.  

On January 30, Boeing reporting strong quarterly results, withannual revenues topping $100 billion for the first time. The company forecast full-year 2019 earnings of between $19.90 and $20.10 a share, well ahead of Wall Street expectations.

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