The Boeing Company Industrial Goods | Aerospace/Defense Products & Services | USA The Boeing Company, together with its subsidiaries, designs, develops, manufactures, sells, services, and supports commercial jetliners, military aircraft, satellites, missile defense, human space flight, and launch systems and services worldwide. It operates in five segments: Commercial Airplanes, Boeing Military Aircraft, Network & Space Systems, Global Services & Support, and Boeing Capital. The Commercial Airplanes segment develops, produces, and markets commercial jet aircraft for various passenger and cargo requirements; and provides related support services to the commercial airline industry. This segment also offers aviation services support, aircraft modifications, spare parts, training, maintenance documents, and technical advice to commercial and government customers. The Boeing Military Aircraft segment researches, develops, produces, and modifies manned and unmanned military aircraft, and weapons systems for global strike, vertical lift, and autonomous systems, as well as mobility, surveillance, and engagement. The Network & Space Systems segment researches, develops, produces, and modifies strategic defense and intelligence systems, satellite systems, and space exploration products. The Global Services & Support segment provides integrated logistics services comprising supply chain management and engineering support; maintenance, modification, and upgrades for aircraft; and training systems and government services that include pilot and maintenance training. The Boeing Capital segment offers financing services and manages financing exposure for a portfolio of equipment under operating and finance leases, notes and other receivables, assets held for sale or re-lease, and investments. The company was founded in 1916 and is headquartered in Chicago, Illinois.
Boeing Puts the Dow on its Shoulders Aug 1, 2017 In sports, it’s common for good teams to have a clutch player they can count on at big moments to take the team to the next level. For the DJIA, Boeing (BA) has been that player. Boeing has accounted for more than a quarter of the DJIA’s 10%+ return this year, and in July alone, BA was responsible for more than half of the index’s 2.5% gain. Because the DJIA is price-weighted and BA has the highest share price in the index, it is also the stock with the largest weighting, but even taking that into account, BA has out-pulled its weight by several orders of magnitude. Along with BA, other DJIA components that had a hot hand in July were UnitedHealth (UNH) and Caterpillar (CAT), which each accounted for more than 8% of the gain in July. Verizon (VZ) was also impressive. Although its weight in the index is only 1.5%, VZ accounted for 4.7% of July’s gain. While these stocks did well in July, a number of stocks are in a slump. 3M (MMM), which has been a big contributor the DJIA’s gain this year, had a horrendous July. The same can also be said of Home Depot (HD). The biggest drag on the year, though, has been IBM. Both this year and in July, IBM has been the biggest downside drag to the DJIA. In years past, IBM had been a reliable stock, but in recent years, it’s more of an automatic out.
Boeing (BA) and 737 Crashes Mon, Mar 21, 2022 Shares of Boeing (BA) are down nearly 4% in today's session as of this writing on news of a fatal crash of one of the company's 737 jets in China. Any plane crash which results in fatalities is obviously a tragedy, and our hearts go out to all the victims and their families. While it's hard to pivot to the market-related implications of these types of events, investors in Boeing and related companies are obviously interested in how these types of events, whether due to mechanical or other issues, will impact their investments. Today's crash involved one of the company's 737-800 planes and not the 737-MAX (the variant which was involved in crashes in 2018 and 2019). At this point, there are no details regarding the cause of the crash, but details will likely be forthcoming in the days and weeks ahead. In the chart below, we show the chart of BA since the start of 2000 and include red dots indicating each time that there has been a fatal incident involving a 737 (any generation of the plane). There have been a total of three dozen incidents internationally prior to today, and historically, these past events have not had any consistent impact on the performance of BA stock. That being said, the immediate reaction in today's session is set to rank pretty high up on the list of worst declines after a crash involving a 737. Below we show the daily percent change of BA in the first session after a 737 variant had a fatal incident. As might be expected, the 737-MAX crashes in 2018 and 2019 were the two worst single-day declines for the stock of these instances with drops of 6.59% and 5.33%, respectively. The Turkish Airlines Flight 1951 crash in 2009 ranks as the next largest drop of 4.32%. In general, since the 737 MAX issues surfaced, on news of any fatal incident involving 737s, investors have been quick to sell first and ask questions later. The 737 Next Generation (abbreviated 737NG) which includes the 737-600, 700, 800, and 900 variants is the generation that Boeing produced from 1996 and ceased assembly of in 2019 as the company's production switched to the 737 MAX. Of the 737NG generation, the 800 variant (the variant involved in today's crash) is the most common. Given this, in the table below, we show those fatal incidents involving the 800 series since 2000 as well as the two MAX crashes given their importance in recent years. This was the seventh fatal incident involving this plane without any survivors. Boeing's stock has mostly seen a negative reaction in response to these incidents and even though the next week has typically seen the stock rebound, performance over the next one and three months, especially since the issues with the MAX began, have tended to be followed by declines. Of course, each of these incidents has a fair degree of nuance to each one. For example, there are numerous reasons as to why these crashes occurred, and the majority had nothing to do with an inherent flaw in the BA aircraft. Whereas the 737-MAX problems were accredited to a design flaw, and thus are more directly negative for Boeing, many of the other incidents were on account of the flight crew or pilot error. Additionally, there is also the issue of poor timing like the early 2020 instances which lined up with the COVID crash. In other words, the weak performance following these crashes had more to do with factors outside of the crashes themselves. Again, any crash, whatever the cause, is a tragedy, but from a market perspective, it's important to differentiate between the cause behind them.
