The Boeing Company Ropes in a Huge Chinese Order

Boeing has made multiple headlines this week, but a multibillion-dollar deal announced Friday takes the cake.

Jun 13, 2014 at 3:00PM

Dow Jones Industrial Average (DJINDICES:^DJI) was trading 29 points higher, or 0.19%, by midafternoon despite a decline in consumer sentiment and escalating tensions in Iraq (but when are tensions not escalating somewhere). Consumer sentiment fell to 81.2 in early June, its lowest level in three months, according to the University of Michigan and Thomson Reuters. With escalating violence in Iraq, oil prices have pushed to their highest level since September -- investors should keep an eye on the potential impact on commodity prices, which could slow economic growth. 

With all that in mind ,here are two companies making big headlines.

Inside the Dow, aviation giant Boeing (NYSE:BA) announced that China Eastern Airlines has committed to purchase 80 737 passenger jets.

Once finalized, the order is expected to become China's largest-ever purchase by an airline for single-aisle airplanes, according to Boeing. The order is valued at roughly $8 billion at current list prices and will join Boeing's already massive backlog of orders worth (as of last quarter) $440 billion.

Boeing investors should keep an eye on Chinese airlines, which are expanding their fleets and networks to keep pace with the country's accelerated air travel growth. In fact, Boeing hasn't ruled out the possibility of building a final assembly line for single-aisle commercial aircraft in China, which could give the company an edge in securing additional 737 orders. Over the last half decade, Boeing has continued to increase its estimate for demand from China; the company now expects the country through 2032 to need 5,580 new airplanes worth roughly $780 billion, according to Bloomberg. 


2014 Chevrolet Camaro. Source: General Motors.

Outside of the Dow, General Motors (NYSE:GM) today announced another four recalls that cover more than 500,000 cars sold in the U.S. The new set of recalls includes every single Camaro sold since the new model went on sale in 2010 after its eight-year hiatus.

This new recall is scarily similar to the ignition-switch problem that has been linked to at least 13 deaths and prompted a federal investigation. General Motors said a Camaro driver's knee could knock the key and ignition switch out of the "run" position. GM said it has connected the defect to three crashes with four minor injuries.

This puts General Motors' count of individual recalls this year to 38, which cover more than more than 16.4 million globally, including 14.4 million vehicles in the U.S., according to Automotive News

With General Motors dominating the negative recall headlines, Toyota Motor quietly announced its own recall of 844,277 vehicles in the U.S. due to faulty Takata airbags. That brings Toyota's grand total of vehicle recalls in 2014 to 10.1 million vehicles worldwide.

Warren Buffett's worst auto-nightmare (Hint: It's not Tesla)
A major technological shift is happening in the automotive industry. Most people are skeptical about its impact. Warren Buffett isn't one of them. He recently called it a "real threat" to one of his favorite businesses. An executive at Ford called the technology "fantastic." The beauty for investors is that there is an easy way to invest in this megatrend. Click here to access our exclusive report on this stock.

Daniel Miller owns shares of General Motors. The Motley Fool recommends General Motors. 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.

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