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Boeing's Big Rebound Outshines the Dow's Modest Rise

http://www.fool.com/investing/general/2013/07/15/boeings-big-rebound-outshines-the-dows-modest-rise.aspx

Dan Carroll
July 15, 2013

Stocks have kept up the market's record rise today after the Dow Jones Industrial Average (INDEX: ^DJI) hit a new all-time high to close last week's run. Boeing (NYSE: BA) has come back in a big way from Friday's Dreamliner-fire-fueled plunge, although the rest of the Dow has risen only slightly, and blue-chip stocks are split evenly between risers and losers. Let's catch up on the stories you need to know.

Boeing lifts off
Boeing's shares have bounced back with a 3.7% gain today, leading the Dow after an early probe of the 787 Dreamliner fire at London's Heathrow airport last week didn't  indict the plane's battery as a cause of the incident. That's a relief for Boeing investors after the 787's battery-caused grounding dominated talk of the company for the majority of early 2013. Still, the company's PR headaches regarding its newest airliner haven't stopped its stock from shooting up by more than 32% year to date.

Given the company's impressive backlog of commercial aircraft and renewed orders for the 787, it's hard to imagine that the Heathrow fire will do much, if anything, to slow this stock down, outside the dent it inflicted on Friday. Even as sequestration's budget cuts impact Boeing's defense division, this company's commercial airline segment has stepped up to outpace any losses.

Microsoft (NASDAQ: MSFT) is also having a good day, with shares up 1.1%. But unlike Boeing, the tech giant has plenty of chinks in its armor. The company recently cut its prices on its Surface RT tablets in an effort to boost sales. Microsoft's entry into the tablet arena hasn't been pretty so far: IDC revealed in a report that the company shipped only about 900,000 RT and Pro tablets combined in the first quarter and heavily trails the industry's leaders in market share, controlling less than 2% of the total market. By comparison, tablet leader Apple controls almost 40% of the market, according to tech site The Verge.

While it's vital that Microsoft strikes into the tablet market, considering the power