The Boeing Co. Lands Another Multibillion-Dollar Commitment at Airshow

The Boeing Company continues to rope in big orders this week, and investors would be wise to keep track of orders compared to rival Airbus to better understand which is gaining sales momentum.

Jul 16, 2014 at 3:00PM

The Dow Jones Industrial Average (DJINDICES:^DJI) has gained 77 points, or 0.45%, as of 2:30 p.m. EDT as investors digest the Federal Reserve's "Beige Book" data. The "Beige Book" showed that the U.S. economy continued to expand in recent weeks, and most of the 12 districts were optimistic about the outlook for growth. The Fed also noted that overall consumer spending increased in every district and vehicle sales again remained stronger than non-auto retail sales. Slowly but surely, the U.S. economy continues to gain momentum as earnings season kicks into high gear.

With that in mind, here are some industrial companies making major headlines in the markets today.

Hna Max

Boeing, Hainan Airlines Announce Commitment for 50 737 MAX 8s. Source: Boeing

Inside the Dow, the Boeing Company (NYSE:BA) continues to receive commitments for its commercial aircraft at the Farnborough International Airshow in the United Kingdom. Today Boeing announced a commitment from Hainan Airlines for 50 737 MAX 8s, which would keep Boeing as the Chinese airline's sole single-aisle fleet-supplier. The commitment for 50 737 MAX 8s is valued at $5.1 billion at current list prices and will be posted on Boeing's orders and deliveries as the terms of the deal are finalized.

Boeing's commitment from Hainan Airlines follows yesterday's commitments from Intrepid Aviation, Air Lease Corporation, and CIT Aerospace, which totaled $8.3 billion in aircraft orders at current list prices.

More orders are expected to file in this week at the Farnborough airshow, and Boeing investors would be wise to keep an eye on the orders rival Airbus brings in to better determine sales momentum in the important single-aisle commercial aircraft segment.

Outside the Dow, CSX Corporation (NYSE:CSX) reported its second-quarter results after the market closed yesterday and held its conference call this morning to present its information to investors. The biggest question for investors was whether CSX was able to rebound from lower shipment volume and increased labor costs owing to the harsh winter weather in this year's first quarter.

Q2 results indeed showed a substantial pickup in volume. Car load volumes were up 14% compared to the first quarter, which helped drive revenue 7% higher to $3.2 billion. CSX's profit reached $529 million, or $0.53 per share, which slightly topped analysts' earnings estimates of $0.52 per share.

Unfortunately, while the surge in volume helped drive revenue and earnings, it also brought additional problems for CSX. The company's network performance was adversely affected as its on-time arrivals dropped from 82% during last year's second quarter to 42% last quarter. Also, the amount of hours carloads dwelled in terminals rose from 21.9 to 25.9 in the second quarter, compared to last year.

CSX's network performance was slightly disappointing, but it should smooth out in the third quarter, as the company will be better prepared to handle rebounding car load volume. Overall, it was a strong quarter for CSX, and management confirmed that margins will expand and earnings will resume double-digit growth next year. 

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Daniel Miller has no position in any stocks mentioned. The Motley Fool owns shares of CSX. 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.

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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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