The Boeing Co. Nears Another Victory Over Rival and Tesla Motors Eyes a New Market

The Dow remains fairly flat today, but Tesla Motors and Boeing are making noise in the markets.

Jul 2, 2014 at 3:00PM

The Dow Jones Industrial Average (DJINDICES:^DJI) at midafternoon was trading 12 points higher, or 0.07%, on positive employment news. In June, U.S. private-sector jobs increased by 281,000 on a seasonally adjusted basis, the biggest monthly increase since November 2012, according to the latest ADP report. June's result also handily beat the forecast for addition of 200,000 jobs.

"We're looking for a bit of a snapback in the economy and this is certainly data that points in that direction," Art Hogan, chief market strategist at Wunderlich Securities, told Reuters. "The pattern of better economic data continues, that means we've got an improving economy which should lead to higher earnings and be constructive for stocks."

Investors will now look toward the government's June payroll data, which is due out Thursday. 

With that in mind, here are a couple companies making headlines in the markets today.

Inside the Dow, airplane manufacturer Boeing (NYSE:BA) appears to be nearing a deal to sell roughly 30 737 MAX commercial aircraft to U.K. carrier Monarch Airlines, though an official decision has yet to be made. The potential deal would be worth roughly $3 billion, according to Reuters, and would be a slap in the face to Europe-based Airbus, which was expected to land the contract.

Boeing also just received a nearly $2 billion Pentagon contract to supply the U.S. Navy with 38 FA-18 fighter aircraft and 21 EA-189 Growler electronic warfare aircraft. Boeing will also deliver 12 more aircraft to Australia, according to the St. Louis Business Journal.

While these orders seem minuscule when compared to Boeing's massive order backlog valued at $440 billion, they are important for other reasons. First, each contract awarded to Boeing over Airbus in the highly competitive single-aisle commercial aircraft market is a victory. Industry analysts had predicted Airbus would win a majority of contracts, but Boeing has made a recent sales surge with its 737 family. Second, every military contract is a Boeing win in the face of declining revenue and profits from its defense business amid government budget cuts.


Tesla is accelerating production rates of its Model S. Source: Tesla Motors.

In other industrial news, Tesla Motors (NASDAQ:TSLA) is preparing to introduce its first right-side-drive vehicles in Australia. Thus far, electric vehicles has failed to gain any momentum in Australia's market, though Tesla's Model S is quite the step up from traditional EVs. Tesla only recently introduced its right-side-drive vehicles into the United Kingdom, and the young automaker hopes to launch the Model S in Australia around September, according to the Financial Review.

Despite Tesla's promising international expansion, investors should keep in mind that these developments won't influence this year's deliveries, as the automaker remains constrained by supply. Tesla was predicted to deliver roughly 15,000 vehicles through the first half of 2014; as production bottlenecks are resolved, deliveries are expected to reach 20,000 in the back half of this year. If Tesla can match its delivery forecast of 35,000 vehicles in 2014, and end the year at a production rate of roughly 50,000 per year, it will kept another promise to investors. 

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 has no position in any stocks mentioned. The Motley Fool recommends Tesla Motors. The Motley Fool owns shares of Tesla 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.

1 Key Step to Get Rich

Our mission at The Motley Fool is to help the world invest better. Whether that’s helping people overcome their fear of stocks all the way to offering clear and successful guidance on complicated-sounding options trades, we can help.

Feb 1, 2016 at 4:54PM

To be perfectly clear, this is not a get-rich action that my Foolish colleagues and I came up with. But we wouldn't argue with the approach.

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.

"The Motley Fool aims to build a strong investment community, which it does by providing a variety of resources: the website, books, a newspaper column, a radio [show], and [newsletters]," wrote (the clearly insightful and talented) money reporter Kathleen Elkins. "This site has something for every type of investor, from basic lessons for beginners to investing commentary on mutual funds, stock sectors, and value for the more advanced."

Our mission at The Motley Fool is to help the world invest better, so it's nice to receive that kind of recognition. It lets us know we're doing our job.

Whether that's helping the entirely uninitiated overcome their fear of stocks all the way to offering clear and successful guidance on complicated-sounding options trades, we want to provide our readers with a boost to the next step on their journey to financial independence.

Articles and beyond

As Business Insider wrote, there are a number of resources available from the Fool for investors of all levels and styles.

In addition to the dozens of free articles we publish every day on our website, I want to highlight two must-see spots in your tour of

For the beginning investor

Investing can seem like a Big Deal to those who have yet to buy their first stock. Many investment professionals try to infuse the conversation with jargon in order to deter individual investors from tackling it on their own (and to justify their often sky-high fees).

But the individual investor can beat the market. The real secret to investing is that it doesn't take tons of money, endless hours, or super-secret formulas that only experts possess.

That's why we created a best-selling guide that walks investors-to-be through everything they need to know to get started. And because we're so dedicated to our mission, we've made that available for free.

If you're just starting out (or want to help out someone who is), go to, drop in your email address, and you'll be able to instantly access the quick-read guide ... for free.

For the listener

Whether it's on the stationary exercise bike or during my daily commute, I spend a lot of time going nowhere. But I've found a way to make that time benefit me.

The Motley Fool offers five podcasts that I refer to as "binge-worthy financial information."

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. It's also featured on several dozen 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 ... and I don't say that simply because the hosts all sit within a Nerf-gun shot of my desk. Rule Breaker Investing and Answers contain timeless advice, so you might want to go back to the beginning with those. The other three take their cues from the market, so you'll want to listen to the most recent first. All are available at

But wait, there's more

The book and the podcasts – both free ... both awesome – also come with an ongoing benefit. If you download the book, or if you enter your email address in the magical box at the podcasts page, you'll get ongoing market coverage sent straight to your inbox.

Investor Insights is valuable and enjoyable coverage of everything from macroeconomic events to investing strategies to our analyst's travels around the world to find the next big thing. Also free.

Get the book. Listen to a podcast. Sign up for Investor Insights. I'm not saying that any of those things will make you rich ... but Business Insider seems to think so.

Compare Brokers