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StockBeat: Boeing Climbs Despite Nosedive in Deliveries

Published 10/09/2019, 17:51
Updated 10/09/2019, 18:23
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Investing.com - Boeing (NYSE:BA) climbed on Tuesday despite the aircraft maker delivering fewer-than-expected jets last month as the grounding of its 737 MAX jet continues to keep a lid on growth.

Boeing (NYSE:BA) delivered 276 planes through August, down 42% from the 481 jets delivered in the first eight months of last year, undershooting analyst forecasts for about 500 deliveries during the period in 2019. Boeing shares were up 2.1% and contributed more than 50 points to the Dow Jones industrials.

Weakness among other Dow components, especially McDonald’s (NYSE:MCD), pulled the blue-chip index lower.

The slump in Boeing (NYSE:BA) deliveries comes as the company did not deliver any 737 MAX aircraft, which have been grounded worldwide for nearly six months after two fatal crashes in Indonesia and Ethiopia.

Boeing has estimated that its 737 MAX jets could be back in the air by October, but the aircraft maker may find it difficult to build traction as some regulators said they would carry out independent checks to validate the FAA's final verdict on improvements made to the jets.

The European Aviation Safety Agency said it plans to send its own pilots to the U.S. to carry out flight tests of the jets.

The checks from other regulators, however, could restore public faith in the jets, but will likely delay the entry to service.

European rival Airbus, meanwhile, continues to bolster its pipeline, with combined deliveries of 500 aircraft for the first eight months of 2019.

Boeing is up more than 13% for the year so far, after bouncing from a low of around $320 last month. It had been up as much as 38% before the 737 Max groundings.

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