Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious OutperformanceFind Stocks Now

StockBeat: Boeing Climbs Despite Nosedive in Deliveries

Published 09/10/2019, 12:51 PM
Updated 09/10/2019, 01:23 PM
© Reuters.

Investing.com - Boeing (NYSE:BA) climbed on Tuesday despite the aircraft maker delivering fewer-than-expected jets last month as the grounding of its 737 MAX jet continues to keep a lid on growth.

Boeing (NYSE:BA) delivered 276 planes through August, down 42% from the 481 jets delivered in the first eight months of last year, undershooting analyst forecasts for about 500 deliveries during the period in 2019. Boeing shares were up 2.1% and contributed more than 50 points to the Dow Jones industrials.

Weakness among other Dow components, especially McDonald’s (NYSE:MCD), pulled the blue-chip index lower.

The slump in Boeing (NYSE:BA) deliveries comes as the company did not deliver any 737 MAX aircraft, which have been grounded worldwide for nearly six months after two fatal crashes in Indonesia and Ethiopia.

Boeing has estimated that its 737 MAX jets could be back in the air by October, but the aircraft maker may find it difficult to build traction as some regulators said they would carry out independent checks to validate the FAA's final verdict on improvements made to the jets.

The European Aviation Safety Agency said it plans to send its own pilots to the U.S. to carry out flight tests of the jets.

The checks from other regulators, however, could restore public faith in the jets, but will likely delay the entry to service.

European rival Airbus, meanwhile, continues to bolster its pipeline, with combined deliveries of 500 aircraft for the first eight months of 2019.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Boeing is up more than 13% for the year so far, after bouncing from a low of around $320 last month. It had been up as much as 38% before the 737 Max groundings.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.