Boeing Sends the Dow Flying While Telecoms Tumble

Investors started off April on the right foot as aerospace giant Boeing helped the Dow rally. Find out more.

Apr 1, 2014 at 11:00AM
Longview

On Tuesday, the Dow Jones Industrials (DJINDICES:^DJI) quickly put their first-quarter losses behind them, with the average rising 69 points as of 11 a.m. EDT. Positive comments from Federal Reserve Chairwoman Janet Yellen yesterday continued to give investors confidence that the 5-year-old bull market has further to run, but favorable news on the corporate front also helped send the Dow higher. Boeing (NYSE:BA) jumped about 1% to outperform the Dow's gain, even as telecom giants AT&T (NYSE:T) and Verizon (NYSE:VZ) were among the few losing blue-chip stocks today.

Ba

Source: Boeing.

Boeing news items lately have tended to be a mixed bag, with new orders pouring in but controversies over recent mishaps with its aircraft still popping up. Today's news was positive on both fronts, as a Chicago judge dismissed a petition that sought more information about the missing Malaysia Airlines Flight 370 -- a Boeing 777 -- as a possible precursor to discovery. The ruling won't stop possible legal action in the future, but it should keep the proceedings more in line with typical practice, which should be to Boeing's advantage. Moreover, Boeing announced that it had finalized a $6.5 billion order with Air Canada for more than five dozen 737 MAX aircraft, as well as options and rights to purchase even more of the fuel-saving aircraft. Even as the aircraft maker faces growing pains with many of its new models, Boeing has the capacity to reap huge revenue as long as it can iron out early kinks.

AT&T yesterday announced a massive stock repurchase of more than $10 billion, with the ability to buy back up to 300 million shares. Although buybacks generally spur bullish moves in stock prices, AT&T shares didn't rise yesterday, and investors appear concerned about the telecom's ability to grow, sending shares down 1% this morning. By making such a big repurchase of shares, AT&T seems less likely to go after a major acquisition to respond to Verizon's complete takeover of its Verizon Wireless division.

Affecting both AT&T and Verizon are moves from Sprint (NYSE:S) to consider an alternative to cable-based broadband Internet service. Although setting up such a network would involve huge costs, it still represents a potential threat to the investment that Verizon and AT&T have made into more conventional broadband. Sprint's threat is far from immediate, but as investors consider the long-term future of telecom, it's clear that AT&T and Verizon will have to keep working hard to preserve their lead over rivals in the U.S. while continuing to find growth opportunities as technology develops.

Boost your 2014 returns with The Motley Fool's top stock
There's a huge difference between a good stock and a stock that can make you rich. The Motley Fool's chief investment officer has selected his No. 1 stock for 2014, and it's one of those stocks that could make you rich. You can find out which stock it is in the special free report "The Motley Fool's Top Stock for 2014." Just click here to access the report and find out the name of this under-the-radar company.

Dan Caplinger has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. 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.

Money to your ears - A great FREE investing resource for you

The best way to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as “binge-worthy finance.”

Feb 1, 2016 at 5:03PM

Whether we're in the midst of earnings season or riding out the market's lulls, you want to know the best strategies for your money.

And you'll want to go beyond the hype of screaming TV personalities, fear-mongering ads, and "analysis" from people who might have your email address ... but no track record of success.

In short, you want a voice of reason you can count on.

A 2015 Business Insider article titled, "11 websites to bookmark if you want to get rich," rated The Motley Fool as the #1 place online to get smarter about investing.

And one of the easiest, most enjoyable, most valuable ways to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as "binge-worthy finance."

Whether you make it part of your daily commute or you save up and listen to a handful of episodes for your 50-mile bike rides or long soaks in a bubble bath (or both!), the podcasts make sense of your money.

And unlike so many who want to make the subjects of personal finance and investing complicated and scary, our podcasts are clear, insightful, and (yes, it's true) fun.

Our free suite of podcasts

Motley Fool Money features a team of our analysts discussing the week's top business and investing stories, interviews, and an inside look at the stocks on our radar. The show is also heard weekly on dozens of radio stations across the country.

The hosts of Motley Fool Answers challenge the conventional wisdom on life's biggest financial issues to reveal what you really need to know to make smart money moves.

David Gardner, co-founder of The Motley Fool, is among the most respected and trusted sources on investing. And he's the host of Rule Breaker Investing, in which he shares his insights into today's most innovative and disruptive companies ... and how to profit from them.

Market Foolery is our daily look at stocks in the news, as well as the top business and investing stories.

And Industry Focus offers a deeper dive into a specific industry and the stories making headlines. Healthcare, technology, energy, consumer goods, and other industries take turns in the spotlight.

They're all informative, entertaining, and eminently listenable. Rule Breaker Investing and Answers are timeless, so it's worth going back to and listening from the very start; the other three are focused more on today's events, so listen to the most recent first.

All are available for free at www.fool.com/podcasts.

If you're looking for a friendly voice ... with great advice on how to make the most of your money ... from a business with a lengthy track record of success ... in clear, compelling language ... I encourage you to give a listen to our free podcasts.

Head to www.fool.com/podcasts, give them a spin, and you can subscribe there (at iTunes, Stitcher, or our other partners) if you want to receive them regularly.

It's money to your ears.

 


Compare Brokers