Boeing’s (BA) stock is down more than 2% today, the steepest intraday drop since April 1, following the primary defeat of GOP leader Eric Cantor, reports Bloomberg.
Cantor’s primary election loss could put congressional re-authorization of the Export-Import Bank – which benefits the world’s largest plane maker as well as other large US corporations by providing them with low-cost lending as well as capital insurance to facilitate the export of U.S. goods to int’l markets — at risk.
Financing from the the U.S. government backed Export-Import Bank would support $10 billion worth of Boeing’s 2014 sales, Bloomberg said.
Chris Krueger, a senior policy analyst for Guggenheim Securities told the publication in an email that “Boeing was the “biggest loser” besides Cantor in the Virginia Republican’s surprise loss yesterday.”
Cantor has been an Export-Import Bank advocate, and his loss to Tea Party-backed challenger, David Brat, brings the bank’s “future into question,” B’berg Industries analysts, Caitlin Webber and George Ferguson, said in a note today.
Boeing slid as much as 2.50% percent to $133.84 at 3:05PM EDT in New York.