Amazon, Boeing led markets in ‘17

It was a strong year for the stock market, but 2017 was a great year if you made airplanes (think Boeing), were an online juggernaut (Amazon) or built homes (KB Homes). It was a year to forget if you were an energy company (Chesapeake) made Barbie dolls (Mattel) or if you were a storied industrial conglomerate about to go on a radical slim-down program (General Electric).

The stock market had a banner year overall, but there were plenty of big winners, and big losers, among individual U.S. companies. Here’s a look at a few of them.

THE WINNERS • THE MIGHTY AMAZON

Amazon’s gain of 58 per cent in 2017 was hardly shabby, but that number only begins to tell of the enormous effect the company had on the broader market. No other company struck as much fear in its rivals, or potential rivals.

Department stores and mall-based retailers continued to plunge as Americans did more of their shopping at Amazon, while other companies like Walmart raced to build up their own online offerings. And when Amazon snapped up Whole Foods in June, investors dumped the stocks of supermarket companies, certain they’d take a shellacking from their new competitor.

• BOEING TAKES FLIGHT

Boeing soared 90 per cent, one of its best years on record. The aerospace giant has benefited greatly as the global economy kicked into a higher gear, increasing demand for airplanes. The U.S. economy continued to grow, while major regions like Europe and Japan did better than they had in recent years.

• BREAKING GROUND

Homebuilders made huge gains for the year as housing prices continued to rise. There are relatively few homes on the market, but demand is strong thanks to the growing economy, solid hiring, and low mortgages rates. Late in the year, sales of new homes reached a 10-year high, and many economists think the trend will continue in 2018.

THE LOSERS • GE’S DIMMING FORTUNES

The icon of U.S. industry saw its stock price slump 45 per cent as investors wondered what its future will look like. GE health care executive John Flannery replaced Jeffrey Immelt as chairman and CEO as Immelt’s 16-year tenure came to an end. Soon after he took over, Flannery said GE will shed about $20 billion in businesses over the next few years. He said 2018 will be a “reset” for GE as the company narrows its focus down to aviation, health care and energy.

• FLAGGING ENERGY

The price of crude oil barely moved in 2017, and energy companies faded after a big gain the year before. While oil prices are stronger than they were and energy companies have cut spending, it’s hard to see what would make oil prices go higher and stay there. U.S. crude has stayed between about $45 and $58 a barrel since early last year. Analysts think that if prices did peek above their current levels, companies — especially shale oil firms in the U.S. — would start producing more oil, which would knock prices down again.

Among energy companies, Baker Hughes dropped 51 per cent. Hess fell 23 per cent and Exxon Mobil lost seven per cent.