Boeing Noses Down as the Dow Rises

The Fed moves to cut bond-buying again on a day when Adobe Systems has been the big winner.

Jun 18, 2014 at 2:30PM
Daily Fool

The market was on an upswing in midafternoon, with the Dow Jones Industrial Average (DJINDICES:^DJI)rising out of the red to go 32 points up as of 2:30 p.m. Twenty-one of the index's 30 member stocks were also in the green. The rise came after the Federal Reserve's unsurprising decision this afternoon to lower its bond-buying stimulus by another $10 billion per month. Boeing (NYSE:BA) stock has declined by 0.5% despite upbeat news from the company's commercial aerospace segment in China. Meanwhile, earnings have given a big boost to Adobe Systems (NASDAQ:ADBE), which has led the tech sector today with shares gaining 7.7%. Let's catch up on what you need to know.

Boeing looks to China for the long run


Boeing's747-8 jumbo jet. Source: Boeing image gallery

Bloomberg reported that Boeing is in talks with ICBC Financial Leasing, part of a major bank in China, for a deal involving the company's 747-8 aircraft. The move would help replace older 747 models at South Korean airline Asiana Airlines and also give a boost to Boeing's struggling 747-8, which has managed just one order year to date.

Analysts have touted China as one of the biggest drivers for growth in a commercial aerospace market in the coming years, and Boeing aims to take full advantage of the market's potential. Boeing projects that the nation alone will need 6,000 commercial aircraft over the next 20 years, although the manufacturer estimates much of that to be in the single-aisle jet category. Nonetheless, it's a huge opportunity for the world's aerospace giants.

The company's commercial aerospace business, its biggest niche by sales, has taken off lately. However, Boeing's defense and space systems branch has lagged as government cuts have taken a toll on defense budgets, particularly in the U.S. Still, Boeing is looking to make the most of this area, as well: The company's United Launch Alliance, a joint venture with Lockheed Martin (NYSE:LMT), is angling to put together a U.S. alternative to Russian rockets that carry military satellites into space. Boeing and Lockheed are facing tough pressure here as the space industry ramps up, however: Elon Musks's SpaceX is pushing hard against the Pentagon to be able to launch military satellites as well. While Boeing and Lockheed plan to have a U.S.-made rocket in place to begin launching military satellites by 2019, it's important to keep an eye on SpaceX, which is emerging as a powerful player in the space-launch segment.

Around the market today, Adobe Systems exceeded earnings estimates in its latest quarterly report. Adobe managed revenue growth of more than 5% for the quarter, topping analyst projections on both the top and bottom lines. The company offered only modest third-quarter projections, but Adobe leadership expressed enthusiasm for "a strong second half of the year." The company has pushed hard into cloud computing, racking up more than half of its overall revenue for the quarter from subscription-based recurring products in a trend that bodes well for the future. It's a great surprise for a company that has faced disappointing earnings in the past; for Adobe investors, today's stock jump is a great payoff.

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Dan Carroll has no position in any stocks mentioned. The Motley Fool recommends Adobe Systems. The Motley Fool owns shares of Lockheed Martin. 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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