Why Shares of General Electric Fell Today
Shares in industrial giant General Electric (NYSE: GE) fell more than 6% by midday today. The fall comes in concert with a day of negative sentiment over the economy and the aerospace sector in particular.
It's no surprise to see GE stock down heavily on Monday when Boeing and other aviation stalwarts are down big, given the importance of commercial aviation (and Boeing) to GE's prospects. GE Aviation remains the company's most significant profit and cash flow generator.
In addition, GE's position as the world's leading aircraft engine company means the aviation industry is always front and center in GE's world. Therefore, when the market stresses economic growth prospects, it's also worried about transportation activity, which means fewer flights and less demand for aircraft engines and aftermarket parts.
Source Fool.com
