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



Dow Lifts Off and Boeing's Orders Surge

The Dow Jones Industrial Average (DJINDICES: ^DJI  ) is up 125 points late in trading after yesterday's sell-off on a few good news items. The Conference Board's Leading Economic Index was released today and it rose 0.3% from June, indicating that the economy should grow over the next few months. This is really just a combination of a lot of economic data that the Conference Board uses to create one easily digestible number, but it's also fairly accurate at predicting the economic direction short-term.

One of the more notable movers on the Dow is Boeing (NYSE: BA  ) , who announced new sales just days before reporting earnings on July 23.

A rendering of Boeing's 737 MAX. Source: Boeing.

Boeing continues sales momentum
At the Farnborough International Airshow Airbus and Boeing both announced solid sales that continue momentum for their industry. Boeing said it had orders for 201 planes valued at $40.2 billion at list prices. Airbus took orders for 496 new airplanes valued at $75 billion.  

The largest order for Boeing was a 50 777-9X order from Qatar Airways, which was a reconfirmation of an earlier order, although Boeing didn't count an option for another 50 airplanes in its order book.

Airbus was set up to perform better in the short term because it launched the A330neo family of airplanes, which are meant to compete with the 787 Dreamliner.

The sheer numbers here are what's important to keep an eye on. Boeing itself predicts that airplanes in service will jump from 20,910 in 2013 to 42,180 in 2033, meaning orders of about $5.2 trillion in new airplanes. Whether Boeing takes more share than Airbus or not, that's a huge growth market for Boeing.  

Boeing isn't cheap at 22 times trailing earnings, but we'll find out next week whether it will pick up enough growth to justify that price. Analysts are expecting $22.4 billion in revenue and $2.01 in earnings per share, and Boeing has soundly beat estimates over the past year.

I wouldn't bet against such a growing market, especially now that the worst of the 787 Dreamliner problems appear to be behind Boeing.

Top dividend stocks for the next decade
What investors shouldn't forget about Boeing is its 2.2% dividend yield, which creates long-term cash flow for investors. 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 (1)

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: 3034968, ~/Articles/ArticleHandler.aspx, 9/1/2015 8:32:09 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...

Travis Hoium

Travis Hoium has been writing for since July 2010 and covers the solar industry, renewable energy, and gaming stocks among other things.

Today's Market

updated 11 hours ago Sponsored by:
DOW 16,528.03 -114.98 -0.69%
S&P 500 1,972.18 -16.69 -0.84%
NASD 4,776.51 -51.82 -1.07%

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

8/31/2015 4:57 PM
^DJI $16528.03 Down -114.98 -0.69%
BA $130.68 Down -2.56 -1.92%
The Boeing Company CAPS Rating: ****