Boeing Leads the Dow Higher With Promise of a Solution to the Dreamliner Disaster

After hitting new highs almost every day last week, the Dow Jones Industrial Average (DJINDICES: ^DJI  ) is up slightly to another all-time high today after China reported mixed economic news over the weekend. As of 1:15 p.m. EDT the Dow is up 38 points, or 0.26%, to 14,435. The S&P 500 (SNPINDEX: ^GSPC  ) is up 0.21% to 1,554.

There were no U.S. economic releases today. On Saturday, China reported that year-over-year inflation in February rose to 3.2%. At the same time, the government reported that industrial-production growth had slowed to 9.9%, while retail sales growth slowed to 12%. China's economic numbers are always suspect, so take these with a grain of salt.

Rising inflation with slowing growth will be of concern for the Chinese government and could lead to monetary tightening later in the year if the trend continues. These concerns had some economists lowering their growth expectations for China from 7.5% to 7%. China is such a large part of the world economy that investors should be aware of what is going on in the country. Slowdowns in China can have ramifications around the world, particularly in the commodity markets.

The Dow finished last week at 14,397, just below the all-time intraday high of 14,413 it hit earlier on Friday. Today it looks set to best both those records.

Today's Dow leader
Today's Dow leader is Boeing (NYSE: BA  ) up 1.6% after Randy Tinseth, marketing vice president of Boeing Commercial Airplanes, said at a conference that Boeing has found a permanent fix for the battery problems that have grounded the 787 Dreamliner since January.

Regulators in both Japan and the U.S. have so far been wary of Boeing's plans to fix the Dreamliner. Reuters quoted Tinseth as saying, "It is a solution that we believe provides three levels of protection for the airplane, and it's a solution that we're confident will ensure safe and reliable service for the 787 in the future." While the Dreamliner is experiencing some well-publicized problems, these are being overblown by the press and will just be a blip in the 30- to 50-year future of the Dreamliner.

With great opportunity comes great responsibility. For Boeing, which is a major player in a multitrillion-dollar market, the opportunity is massive. However, the company's execution problems and emerging competitors have investors wondering whether Boeing will live up to its shareholder responsibilities. In this premium research report, two of the Fool's best industrial-sector minds have collaborated to provide investors with the must-know info on Boeing. They'll update the report as key news hits, so be sure to claim a copy today by clicking here now.


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  • Report this Comment On March 11, 2013, at 2:26 PM, flysafe904 wrote:

    There's a lot of investors getting hurt in this and a LOT of lives at stake as Boeing and FAA execs move the line on safety in a historic abandonment of US leadership in aerospace. I invite the intelligent skeptic dig in; you don't deserve to be jerked around.

    To Boeing's recent claims, I say:

    More smoke and mirrors. Boeing's leaders have had quite the carbon footprint between their torched credibility and the smoke and mirrors campaign to keep the idea of a 'fix' in play.

    Reporters are the new pawns in the media war, running to file reports short on facts and long on hot air from Boeing's Ministry of Information. The reporters who didn't get sent to Rome to watch the Vatican are stuck watching Boeing HQ for smoke signals. Marketing VP Tinseth seems to have forgotten a cardinal rule of credibility in marketing: it's better to keep one's mouth shut than to try to tell someone else's hopeful lie.

    In the face of more damning revelations from NTSB, you'll soon be treated to more press conferences, statements, posturing and hollow claims, and finally, a triumphant declaration of victory and progress as they gain traction with the FAA to allow testing of the 'fix' to a problem they denied existed only weeks ago.

    FAA Secretary Huerta: step carefully; you lost face in the first press conference with McNerney and LaHood, and you seemed to be under either duress or undue influence during your Capitol Hill appearance; maybe it's time to step aside to avoid the appearance of impropriety or having allowed Boeing execs to exert pressure...

    Since their first claimed certification trials and testing ran "200000 hours", lets do this: Get back to us after you've prepared a public, open and transparent testing regimen, and lets talk after 200000 hours of testing; after all, you do want legitimacy, don't you? Get ready for MY questions which come from NASA, Sandia National Laboratory, DoD, Stanford, Purdue, among other places.

    Notably absent are engineers and scientists who don't want to risk their careers and certifications going to bat for Boeing's laughable concept of a 'fix'. Let's talk algorithms, thermodynamic models, let's see results, proof, demonstrations, peer review, infrared imagery of the cells, and data runs from each, along with logs, proof and verifiability. All you've done is create a fireplace and chimney for a battery you said couldn't catch fire and promised would ventilate. Why should anyone trust you now?

    Instead of a statement of sincere regret and a apology, a rededication to what made Boeing great, plus an invitation to scrutinize, what we're instead treated to is scurrying lobbyists and conference calls between Chicago and DC as you wriggle to get approval to fly the fireplace for rigged tests by an FAA you've already proven to have manipulated and abused. It's a weak excuse for engineering and it only exposes your failure to get it right as you now strain to avoid tough questions.

    You had SIX years to get this right, now you say you miraculously fixed it all in six weeks, but all you offer is hot air and press conferences.

    Your employees are gagged, unable to say what they really want to-but there are cracks in the dam. Do you feel the strain? Look; there's one now...

    Boeing execs: Gauntlet thrown. Make contact and show me what you've got; you're going to go up against a panel of Boeing insiders, test pilots, laboratory heads, testimony from inside the 787 program, battery experts, and engineers from NASA, DoD and DARPA programs. If you really have a fix, it's time to stop manipulating stocks by playing with investor confidence and put your money where your mouth is. You're not ready for real questions and you're not ready for cross examination. Go home and try to scrape up some credibility before you slither back out. I'm waiting. Yes, it's personal, and no; you don't want to face me, I've got friends and family in Boeing cockpits and cabins, in the plant and in the sky.

    Boeing execs latest contribution to aeronautics is the Monday morning press release.

    With each passing week, the statements of 'confidence' have moved from CEO McNerney to Conner, to Marketing VP Tinseth; it's engineering by press release, and by mid day, more papers will pick up on the latest heavy breathing headline from the puppet media that cashes Boeing ad dollars while never asking the penetrating questions.

    Now, it's the VP of Marketing telling us how safe the plane will be. Wasn't it already safe? Wasn't that what we were told between the JAL battery fire and explosion and the inflight battery thermal event and smokeout aboard the ANA flight, only days apart? 137 passengers and crew were exposed to toxic, corrosive smoke and gases.

    Nice job guys: you promised a one-in-ten million flight hour failure rate and said you had a way to ventilate smoke and molten battery effluent. Now, you've got two aircraft in need of extensive inspection for smoke and soot effects in their avionics, and 137 exposure cases to monitor. At least two people have already been injured in fighting fires caused by your battery and its charging/management system. No conscience, none at all. Next you want extended operations for five and a half hours from land or nearest diversion airport? (ETOPS 330) Good luck with that.

    787 battery fires and explosions go back over six years. The only thing new this time is that the plume is now coming from Chicago, as Boeing execs burn through credibility and good will as their claims go up in smoke

  • Report this Comment On March 11, 2013, at 7:13 PM, AngelTread wrote:

    'flysafe's post (above) is a long-winded rant.

    However, it's basically correct.

    Boeing's credibility is terribly tarnished by the Dreamliner fiasco. There is no end in sight to the electrical and battery problems. I believe it will drag on for years. Fixes will be difficult, and maybe never satisfactory. Then comes certification problems for both the 'fixes' and ETOPS (permission to fly over remote locations, hours from any airport).

    If I were an airline executive, I'd be looking for alternate aircraft immediately. Traditional aircraft like the Boeing 777 and the Airbus A330 would do much better.

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