Boeing Turns Up the Heat Before Friday's Union Vote

Investors need to keep an eye on tomorrow's machinists' union vote regarding Boeing's contract extension offer that would secure 777X production in Everett, Wash,

Jan 2, 2014 at 3:00PM

The Dow Jones Industrial Average (DJINDICES:^DJI)has pulled back more than 140 points, or 0.85%, in midafternoon trading despite some positive economic data. Initial unemployment claims fell by 2,000 to 339,000 last week  -- the figures remain in range with a growing labor market. Construction spending also rose more than expected, up 1% in November. In addition, the highly followed Institute for Supply Management manufacturing index fell slightly to 57 in December from 57.3 in November, which was better than the expected drop to 56.6; any reading above 50 indicates the U.S. manufacturing sector is expanding. Speaking of the manufacturing sector, major automakers will release December sales figures tomorrow.

Inside the Dow Jones, Boeing (NYSE:BA) is turning up the heat before members of the International Association of Machinists and Aerospace Workers vote on the company's latest contract offer tomorrow. The decision could be key to whether Boeing decides to build its new 777X aircraft in Everett, Wash., or take it elsewhere.

"They made it very clear that if there is a 'no' vote on the contract, they will not build the composite wing here," said Suzette Cooke, mayor of Kent, Wash., according to the Chicago Tribune. "It left the other parts of the plane in question."

Boeing is leveraging future job security to its Everett facility in return for switching workers' pension plan to a contribution, 401(k)-style plan, among other things. Investors would be wise to keep an eye on tomorrow's vote and subsequent decision of the 777X production and final assembly location. More than 20 states are competing for the work.

If the contract is rejected again, Boeing and its investors risk problems arising from moving production to another location with less experienced workers; that's something investors would prefer to avoid after Boeing's 787 Dreamliner had significant cost overruns and production delays.

Outside the Dow, Ford (NYSE:F), General Motors (NYSE:GM) and the rest of the automotive industry are expected to post strong December sales tomorrow morning. As you can see below, industry sales look to come in about 5% higher than last year, which would make 2013 the best year for auto sales since 2007 at about 15.6 million vehicles sold.

Information from 

Ford continues to gain market share in the U.S. and widened its brand lead over Toyota as the finishing touches were put on 2013. At the end of 2012 Toyota's brand trailed Ford sales by 322,521; the Blue Oval's lead widened to 388,825 entering December.

One reason for Ford's widening sales margin is its popular Fusion model. Fusion sales increased 22% through November, while Toyota's Camry sales have increased only 1.3%. The Camry still tops the sales chart for cars in the U.S., but the Fusion could continue eating its market share in 2014. The Fusion, in combination with the F-Series and Escape, continues to lead Ford's momentum and that's a trend you can expect to continue when Ford's next-generation 2015 F-150 hits the showrooms this year.

Dividend stocks like Boeing and ford can make you rich
It's as simple as that. While they don't garner the notoriety of high-flying growth stocks, they're also less likely to crash and burn. And over the long term, the compounding effect of the quarterly payouts, as well as their growth, adds up faster than most investors imagine. With this in mind, our analysts sat down to identify the absolute best of the best when it comes to rock-solid dividend stocks, drawing up a list in this free report of nine that fit the bill. To discover the identities of these companies before the rest of the market catches on, you can download this valuable free report by simply clicking here now.

Fool contributor Daniel Miller owns shares of Ford and General Motors. The Motley Fool recommends Ford and General Motors. The Motley Fool owns shares of Ford. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

©1995-2014 The Motley Fool. All rights reserved. | Privacy/Legal Information