Boeing Leads the Dow After Japan Approves Dreamliner

The economy grew at a relatively brisk 2.5% rate in the first quarter, but analysts had expected 3% growth and the result is a mild sell-off on Wall Street. The Dow Jones Industrial Average (DJINDICES: ^DJI  ) is off just 0.06% today and the S&P 500 (SNPINDEX: ^GSPC  ) is down 0.42%. Investors are also in a cautious mood because the University of Michigan-Thomson Reuters consumer sentiment gauge fell to 76.4 in April, the lowest since January, when tax increases took effect.  

The numbers didn't look great today, but looking closer at GDP, we see that personal consumption grew 3.2% and government spending was a drag on GDP. These are two long-term positive trends for the economy because they show some strength in the consumer and more spending restraint by the government.  

Chevron (NYSE: CVX  ) is up 0.7% today after reporting first-quarter earnings. Net income fell 4.5% to $6.18 billion, or $3.18 per share, but that was ahead of estimates and that's why the stock is moving higher. The company increased oil production in the quarter but lower oil prices were a drag on earnings. Oil companies can be volatile quarter to quarter, but this is a stable business for investors with a long-term view.  

Boeing (NYSE: BA  ) jumped 1.5% after Japan officially approved the company's 787 Dreamliner battery fix. All Nippon Airways and Japan Airlines own about half of the 787s delivered so far so this will bring most of the fleet back to the skies -- eventually. Fixes to the batteries will take until the end of next month so it will be summer before all of Japan's fleet is ready to go. This headache for investors appears to be behind us and now we can focus on earnings, which were very solid in the first quarter.

Boeing operates as a major player in a multitrillion-dollar market in which the opportunities and responsibilities are absolutely massive. However, emerging competitors and the company's execution problems have investors wondering whether Boeing will live up to its shareholder responsibilities. In our premium research report on the company, two of The Motley Fool's best minds on industrials have collaborated to provide investors with the key, must-know issues surrounding Boeing. They'll be updating the report as key news hits, so don't miss out -- simply click here now to claim your copy today.


Read/Post Comments (0) | Recommend This Article (3)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2390156, ~/Articles/ArticleHandler.aspx, 12/22/2014 10:03:33 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement