NEW YORK, April 8 (Xinhua) -- Boeing shares extended losses on Monday as the aircraft maker continued to struggle with the trouble of its 737 Max jet involved in two recent deadly crashes.
The stock plunged as much as 5 percent to a low of 371.86 U.S. dollars apiece during the session, before closing down 4.4 percent at 374.52 dollars per share, the biggest drag on the Dow.
The company announced Friday after the end of the market trading that it would cut 737 Max aircraft production by nearly 20 percent, a signal that the ongoing issues surrounding the plane are not going to be resolved soon.
Boeing decided to cut 737 production to 42 airplanes per month, down from 52, starting in mid-April, according to the company.
Bank of America Merrill Lynch downgraded the Dow component from "buy" to "neutral" on Monday and slashed its outlook on Boeing, saying the plane manufacturer's recent troubles with the 737 Max are worse than expected.
"The reputational loss from these events could erode long-term market share and pricing power of the 737 MAX," BofA analyst Ronald Epstein said in a note to clients.
The move came after two deadly crashes over the past six months both involving 737 Max aircraft and killing a combined 346 people. Questions have been raised about its safety, leading to a global grounding of the jet.
Investors were anxious that the troubles will be a hit to Boeing's 2019 earnings due to fewer-than-anticipated deliveries.
Despite all those issues, Boeing shares are still up 16 percent year to date. The aircraft maker is set to report earnings for its latest fiscal quarter on April 24.
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