Boeing Earnings Weigh on the Dow Jones

Boeing is pulling down the Dow Jones Industrial Average today after weak earnings.

Jul 23, 2014 at 1:32PM

Boeing (NYSE:BA) is weighing on the Dow Jones Industrial Average (DJINDICES:^DJI) today after some surprising charges in its earnings. S&P 500 (SNPINDEX:^GSPC) and the stock market in general are higher after Apple (NASDAQ:AAPL) reported positive earnings after the market close yesterday. As of 1:30 p.m. EDT the Dow was down 36 points to 17,076. The S&P 500 was up three points to 1,986.

Earnings are moving the stock market today, as there were no U.S. economic releases. The biggest mover on the Dow today is Boeing, down 2.6%. Earnings rose 52% year over year to $2.24 per share, beating analyst expectations of $2.01 per share. Revenue was rose to $22.05 billion, up 1.1% year over year but below analyst expectations of $22.23 billion, after the company delivered a record 181 aircraft for the quarter. Boeing also announced it purchased $1.5 billion worth of shares in the quarter and upped its earnings guidance for the year to $7.90-$8.10 per share, up from $7.15-$7.35 per share. So why is Boeing down?

Boeing's earnings included a $272 charge for the development of the KC-46 refueling tanker, part of a $52 billion fixed-price contract with the U.S. Air Force. During its development, the KC-46 program experienced some $700 million in cost overruns. Last quarter, management assured investors this program, while facing some challenges, was on schedule. The increased costs were to keep the plane on schedule. RBC Capital Markets analyst Robert Stallard wrote, "To us it is worrying that Boeing is booking a charge of this magnitude at a relatively early stage in this long-term program, particularly given recent assurances from management that everything was going to plan."

It's not all gloomy, though. The S&P 500 hit an intraday record of 1,989 as Apple and the health care sector propelled the market higher.



Apple is up 2.8% after reporting earnings of $1.28 per share, up 19% from the year-ago quarter's $1.07 and better than analyst expectations of $1.23 per share. Revenue was $37.43 billion, up from $35.52 billion a year ago and above analyst expectations of $37.98 billion. The positive earnings have analysts raising their estimates, with some saying the stock could rise a further 20%.

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Dan Dzombak has no position in any stocks mentioned. The Motley Fool recommends Apple. The Motley Fool owns shares of Apple. 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.

A Financial Plan on an Index Card

Keeping it simple.

Aug 7, 2015 at 11:26AM

Two years ago, University of Chicago professor Harold Pollack wrote his entire financial plan on an index card.

It blew up. People loved the idea. Financial advice is often intentionally complicated. Obscurity lets advisors charge higher fees. But the most important parts are painfully simple. Here's how Pollack put it:

The card came out of chat I had regarding what I view as the financial industry's basic dilemma: The best investment advice fits on an index card. A commenter asked for the actual index card. Although I was originally speaking in metaphor, I grabbed a pen and one of my daughter's note cards, scribbled this out in maybe three minutes, snapped a picture with my iPhone, and the rest was history.

More advisors and investors caught onto the idea and started writing their own financial plans on a single index card.

I love the exercise, because it makes you think about what's important and forces you to be succinct.

So, here's my index-card financial plan:


Everything else is details. 

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