Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



The Boeing Co. Suffers a Strategic Blow; General Electric Gears Up for Q2 Report

The Dow Jones Industrial Average (DJINDICES: ^DJI  ) is down 76 points as of 2:30 p.m. EDT following reports that a Malaysian passenger jetliner has been shot down in Ukraine near the Russian border after the U.S. and EU imposed new sanctions on Russia. With details still emerging on the downed airliner, the market had economic news to digest as well.

Initial unemployment claims fell more than expected last week to 305,000, which is the latest sign of a slowly but surely improving labor market. On another positive note, Thomson Reuters data shows that more than 68% of the 66 S&P 500 companies that have reported earnings through Thursday morning have topped Wall Street expectations. For context, 63% of companies on average have beaten expectations since 1994. 

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

Inside the Dow, Boeing (NYSE: BA  ) was dealt a blow from European rival Airbus Group (NASDAQOTH: EADSY  ) at the Farnborough International Airshow. Airbus launched a major upgrade of its A330 long-range jet, which directly competes with Boeing's 787 Dreamliner. Airbus took a gamble, hoping that its $1.36 billion to $2.71 billion investment -- chump change compared to the cost of developing a complete aircraft -- to upgrade the A330 with new Rolls-Royce PLC engines would generate 14% gains in fuel-efficiency.

Boeing has landed its fair share of orders this week. Source: Boeing

Airbus' move to re-engine the plane will enable the aircraft manufacturer to lower the price substantially on its A330 as it competes with Boeing's more expensive 787 Dreamliner.

When speaking of the development to The Wall Street Journal, John Leahy, chief salesman for Airbus' commercial-plane unit, had this to say: "I think they are caught between a rock and hard place. What they basically can't get their heads around is how we did it and how they can answer it."

Boeing and Airbus are locked in a heated battle, and investors would be wise to keep an eye on orders tallied at the end of the week during the Farnborough airshow to better understand sales momentum between the two rivals.

Also inside the Dow, General Electric (NYSE: GE  ) is gearing up to release its second-quarter report Friday. Analysts are expecting the industrial conglomerate to post earnings of $0.39 per share on revenue of $36.3 billion. Those expectations reflect respective increases of 8.3% and 3.4% compared to last year. 

There looks to be a substantial amount of information for investors to digest during General Electric's conference call: the large Alstom deal and its details, a soon-to-be spin-off of GE Capital's North American retail finance, and more. Investors will also be taking a magnifying glass to GE's industrial business, which is continuing to expand as the company refocuses on its core businesses, rather than GE Capital and finance business.

One important piece of information that investors should look for is whether GE is making progress to improve its operating margins. GE plans to improve its operating margins to 17% in 2016, a 130 basis-point improvement from 2013's 15.7%.

Another important figure for investors to watch will be General Electric's order backlog, which was at $245 billion at the end of the first quarter. Though orders from the Farnborough International Airshow won't be added into the figure until the third quarter, it's clear GE's products remain in demand, and the company's order backlog will fuel revenue growth in the short term. 

Dividend stocks like Boeing and GE can make you rich! Here's more top dividend stocks, Free
The smartest investors know that dividend stocks simply crush their non-dividend-paying counterparts over the long term. That's beyond dispute. They also know that a well-constructed dividend portfolio creates wealth steadily, while still allowing you to sleep like a baby. Knowing how valuable such a portfolio might be, our top analysts put together a report on a group of high-yielding stocks that should be in any income investor's portfolio. To see our free report on these stocks, just click here now.

Read/Post Comments (0) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 3033337, ~/Articles/ArticleHandler.aspx, 8/30/2015 3:54:25 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Daniel Miller

As a Motley Fool Industrial Specialist, I use my marketing and business background in the automotive industry to evaluate major automakers and other large industrial corporations. Follow me on twitter for tweets about stocks, cars, sports, and anything I find amusing.

Today's Market

updated 1 day ago Sponsored by:
DOW 16,643.01 -11.76 -0.07%
S&P 500 1,988.87 1.21 0.06%
NASD 4,828.33 15.62 0.32%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

8/28/2015 4:55 PM
^DJI $16643.01 Down -11.76 -0.07%
BA $133.24 Up +1.37 +1.04%
The Boeing Company CAPS Rating: ****
EADSY $16.23 Down -0.09 -0.55%
Airbus CAPS Rating: No stars
GE $25.16 Up +0.15 +0.60%
General Electric C… CAPS Rating: ****