345.00 +1.00 (0.29%)
After hours: 7:57PM EDT
|Bid||344.60 x 1000|
|Ask||345.10 x 1400|
|Day's range||344.00 - 369.35|
|52-week range||292.47 - 446.01|
|Beta (3Y monthly)||1.27|
|PE ratio (TTM)||39.44|
|Earnings date||23 Oct 2019|
|Forward dividend & yield||8.22 (2.21%)|
|1y target est||411.86|
Jaw-dropping allegations involving Boeing and the grounded 737 MAX airplane involved in two deadly crashes. According to documents seen by Reuters… Instant messages between the MAX's then-chief technical pilot and another Boeing pilot in 2016 show that the head technical pilot - referring to a key safety system on the 737 MAX - said that "I basically lied to the regulators unknowingly." The messages were given to the Federal Aviation Administration by Boeing, subsequently sparking outrage by the head of the FAA, who demanded an "immediate" explanation as to why the information was only recently handed over. This revelation deepens the crisis for the world's largest planemaker. Its best-selling jet, the 737 MAX, was grounded indefinitely, following a crash of a Lion Air flight in Indonesia last year and an Ethiopian Airlines flight in March. The combined death toll: 346. Boeing's so-called MCAS anti-stall software has been tied to both fatal crashes. The messages appear to be the first publicly known observations that MCAS behaved erratically during testing before the aircraft entered service. Boeing's CEO Dennis Muilenberg is scheduled to testify before Congress for the first time later this month and provide investors with an update next week. Shares of Boeing tumbled as much as 7 percent on worries this crisis is far from over.
Earnings season kicks into high gear in the coming week. McDonald's is likely to post an increase in third-quarter profits and sales. Investors will also be looking for word on how McDonald's hopes to capitalize on two recent trends - the chicken sandwich craze and the demand for meat-alternative burgers. In September, McDonald's started testing a Beyond Meat plant-based burger in Canada. Mickey D's results come out on Tuesday. On Wednesday, Caterpillar - another global economic bellwether is due to report. Not only is it coping with a sluggish global economy - its business is being negatively impacted by the steel and aluminum tariffs slapped on by the Trump administration. Morgan Stanley downgraded the stock heading into the results, citing what it called deterioration in Caterpillar's three key end-markets: construction, energy and transportation, and resources. Fresh off allegations from the Federal Aviation Administration that Boeing employees may have misled about the safety of the now grounded 737MAX before two deadly plane crashes, Boeing reports results. This will also be the first time investors hear from CEO Dennis Muilenberg since he was stripped of his chairman title. Rounding out some other key results: Microsoft reports on Wednesday, followed by Amazon on Thursday. On the economic front: Updates on sales of new and previously owned homes. And investors get preliminary manufacturing survey data for October. Wall Street is looking for signs to see if the first contraction in U.S. factory activity in three years was a one-month blip or continued into October.
(Bloomberg Opinion) -- The question about Qantas Airways Ltd.’s plans to start 20-hour direct flights from Sydney to London and New York isn’t why any passenger would want to take the route — it’s why any carrier would want to offer them.For all the hardship of spending a day cooped up with the body odors of a couple of hundred other humans, long-haul flying isn’t a particularly attractive business for airlines, either.Qantas’s international unit made just 10.7 Australian cents of revenue per seat, per kilometer flown in its last fiscal year through June, of which 10.3 Australian cents was eaten up on operating costs. If you fly the roughly 17,000 kilometers (10,500 miles) between London and Sydney and buy a decent bottle of liquor at duty free, the A$70 ($48) you’ll spend will quite possibly be more money than the operating profit Qantas made on your ticket for the entire flight. Qantas’s Jetstar budget carrier makes about twice the profit per kilometer that the international business brings in, and its mainline domestic unit is five times more profitable.So what gives? Establishing ultra-long-haul routes is no easy task. Qantas is modifying in-flight menus and lighting patterns and using its staff as guinea pigs in a test flight this weekend to examine how passengers will cope with such a long journey.Costs don’t explain it. Indeed, they’re likely to be somewhat worse on direct ultra-long-haul flights than on more conventional routes. On a fully-laden twin-aisle passenger jet, fuel will often weigh more than all the passengers and cargo. Breaking the journey and refueling en route at a hub airport is a good way of keeping costs down, because it means that you don’t have to carry fuel for the second “leg” of the flight.Revenue, however, is a different matter. Qantas’s domestic business is so profitable because it has a single struggling rival, Virgin Australia Holdings Ltd. Despite flying more passengers in the 12 months through June than it did six years earlier, Australia’s domestic aviation network operated fewer flights. That’s possible because the muted competition between Qantas and Virgin gives them the discipline to keep a lid on capacity growth, allowing more people to be squeezed onto each plane and keeping prices high.International routes aren’t normally like that. At least a dozen different airlines typically compete to ferry passengers between Australia and Europe, and those with hub airports mid-route can easily serve multiple destinations in a way that would be crippling to an end-of-line carrier like Qantas. The partnership between Qantas and Emirates, which started in 2013, was intended to get around this problem by funneling the Australian carrier’s passengers onto the huge network operated by its Gulf partner. While that’s helped return the international unit to profit, margins are vanishingly thin.Ultra-long-haul flights are best understood as a way for the likes of Qantas to reverse the disadvantage that this tyranny of distance engenders. It will never have the network and operations to compete with the geographic advantages of hub carriers in moving passengers between Australia, Europe and North America. However, if it can tempt the more profitable premium passengers away from hub airports with a more direct route, it at least has some ammunition on its side next time it enters negotiations with Emirates about how to share revenues from their flights. You can see this even just looking at its aircraft seat maps. About 18% of the seats on Qantas’s Boeing Co. 787-9 that it uses to fly from Perth to London and on routes between Australia and the U.S. are in business class, with another 12% in premium economy. That’s a larger share of high-margin seats than on the planes that had previously been the workhorses of its international network.It’s probably right to be skeptical that spending 20 hours in economy class can be as glamorous as Qantas’s elaborate pre-testing makes it sound. The only way airlines can make decent money flying to the far side of the world is by letting business class subsidize the rest of the cabin. If you’re flying coach, these flights aren’t really aimed at you.To contact the author of this story: David Fickling at firstname.lastname@example.orgTo contact the editor responsible for this story: Matthew Brooker at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.David Fickling is a Bloomberg Opinion columnist covering commodities, as well as industrial and consumer companies. He has been a reporter for Bloomberg News, Dow Jones, the Wall Street Journal, the Financial Times and the Guardian.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Boeing is set to release earnings on Wednesday, and CEO Dennis Muilenburg is preparing to testify before Congress. Not a good time for a massive scandal.
Investing.com – Stocks finished the week on a down note on slumps in Boeing and Johnson & Johnson, plus new worries about Chinese economic growth.
The Dow Jones Industrial Average Index lost close to 260 points or 0.95% today. Boeing stock (BA) fell 6.73%, the biggest loss in the Dow today.
(Bloomberg) -- Associates of a Ukrainian oligarch fighting extradition to the U.S. were working to dig up dirt on former Vice President Joe Biden last summer in an effort to get Rudy Giuliani’s help in the oligarch’s legal case, according to three people familiar with the exchanges.Dmitry Firtash, charged with conspiracy by the U.S. and living in Vienna, shuffled lawyers in July to add Joe diGenova and Victoria Toensing, vocal supporters of President Donald Trump who had worked with Giuliani. Around that time, some of Firtash’s associates began to use his broad network of Ukraine contacts to get damaging information on Biden, the people said.DiGenova and Toensing have billed Firtash about $1 million for their work, one of the people said. That includes costs for Lev Parnas, a Giuliani associate, as a translator and important contact, the person said. Parnas was arrested last week along with several associates and accused of conspiring to violate campaign-finance laws.People working on Firtash’s behalf collected a witness statement from Viktor Shokin, a former Ukrainian prosecutor-general. The statement, dated early September, helped Giuliani renew an assertion that he’d been advancing for months -- that Biden had tried in 2016 to sway Ukrainian politics to help his son. U.S. and Ukrainian officials have disputed Shokin’s account.Shokin, though, had been promised his statement wouldn’t be made public, according to the people. Giuliani went on to cite it repeatedly, waving it around on cable news as evidence of Biden’s alleged corruption. The Hill and other media outlets provided links to it, with Giuliani later suggesting he had a role in making it public. “This is the affidavit I put out,” he said during a Fox News interview this month.As a result of the publicity Giuliani generated with Shokin’s statement, two of the people said they believe the odds of the Justice Department dropping the case against Firtash have plummeted, because it would look like a quid pro quo. Others connected to the case agreed.U.S. lawmakers conducting a presidential impeachment inquiry are bearing down on whether favors were traded for influence. They are examining Giuliani’s efforts to turn up evidence in Ukraine and allegations that the Trump administration withheld crucial aid until the country’s president agreed to investigate the Bidens.Political AidIf indeed Firtash’s camp aided the Trump political machine, that could be a problem. American politicians cannot accept foreign campaign contributions, and as Special Counsel Robert Mueller’s investigation has laid out, even non-monetary assistance can have a value.In a statement from his spokesman, Firtash denied having contact with Giuliani.Giuliani, in a text message, wrote: “I have nothing to do with Firtash case. Never met him and don’t know him.”Asked about whether Shokin’s statement may have harmed Firtash’s chances of getting the case dropped, Giuliani responded, “It would seem to me it should have nothing to do with it. It’s either a good case or not.”Toensing and diGenova, a husband-and-wife law team, declined to comment through a spokesman. The Justice Department also declined to comment.Giuliani was an attractive ally for Firtash. Once renowned for his work as a U.S. prosecutor and a New York mayor, he was a close adviser to Trump and became his personal lawyer in April 2018. He also brought extensive contacts in Republican-leaning legal circles.A Ukrainian industrialist with natural gas interests, Firtash was looking to get out from under five years of legal headaches in the U.S. Federal prosecutors have accused him of corruption and racketeering conspiracy. He’s accused of participating in a scheme to bribe Indian officials to secure titanium that would be sold to Boeing Co.Arrested in Vienna on the U.S. charges in March 2014, he posted $174 million in bail and pledged to remain in Austria during extradition proceedings. The Justice Department has described Firtash as an associate of “Russian organized crime.” He has denied all the charges.His aides have argued the case is politically motivated, designed to keep him from influencing Ukraine after the country’s pro-Russian president was ousted in 2014. After joining the Firtash team, DiGenova and Toensing sought information related to Biden to bolster the idea that the case was political, the people familiar with the matter said.In five years of court battles, Firtash’s legal team has successfully beaten back U.S. efforts to bring him to trial in Chicago. The tide appeared to turn over the summer when the Justice Department won a ruling in Austria securing his extradition. But his legal team there filed new evidence asserting that two key witnesses had recanted. His extradition is on hold.Lawyer LineupOn a separate track, his U.S. legal team continues to challenge the case’s legitimacy. By last summer, Firtash decided he needed reinforcements. In July, he parted ways with Lanny Davis, a longtime ally of Bill and Hillary Clinton, both Democrats. Within Firtash’s circle, those ties weren’t considered helpful in dealing with Trump’s Justice Department, according to the people.Tapping pro-Trump lawyers like diGenova and Toensing looked like a useful way to help get his case thrown out, the people said. The legal duo had considered representing Trump during the Mueller probe into Russian interference in the 2016 election. DiGenova has appeared on Fox News attacking Mueller’s investigation.In late September, Fox News reported that the pair was working “off the books” with Giuliani to dig up dirt on the Bidens in Ukraine. That mission was shared by Parnas and Igor Fruman, associates of Giuliani who helped set up meetings with Ukrainian officials. Along with Parnas, Fruman was arrested last week and charged with campaign finance violations. Both men had one-way tickets to Vienna. Giuliani also had a trip scheduled to Vienna.Efforts have already been made to shield some of the work by Parnas and Fruman. The pair assisted DiGenova and Toensing in their law practice, according to John Dowd, a former Trump lawyer now representing them. In a letter to lawmakers, Dowd also wrote that Parnas and Fruman assisted Giuliani in his legal work for Trump, arguing that the two should be protected under attorney-client privilege rules.Toensing has said her firm hired Parnas as a paid translator, though people familiar with Firtash’s business say he has plenty of translators and key aides who speak fluent English.A spokesman for Firtash said he had no contractual or other commercial relationship with Parnas or Fruman.There was one additional connection that DiGenova and Toensing had that people in the Firtash camp considered potentially useful, according to one of the people. Their son Brady Toensing, the former head of the Vermont Republican Party, had joined the Justice Department as senior counsel in its Office of Legal Policy in June. In that position, Brady Toensing has no connection to the Firtash case.Witness StatementThe witness statement from Shokin remains a curiosity. The ex-prosecutor said in his affidavit that he had no evidence of crimes committed by Firtash, a statement intended to help in Firtash’s Austrian legal proceedings. It also included Shokin’s unsupported allegation that Biden attempted to interfere with an investigation of Burisma Holdings, a private natural gas company that had the vice president’s son Hunter on the board.U.S. and Ukrainian officials have said there was no active probe into Burisma at the time.Biden had threatened to withhold $1 billion in U.S. loan guarantees unless Shokin was fired because of his failure to tackle corruption. Biden’s action was proposed by State Department officials and supported by the European Union.(Adds comment from Giuliani)\--With assistance from Greg Farrell, David Voreacos and Boris Groendahl.To contact the reporters on this story: Stephanie Baker in London at firstname.lastname@example.org;Irina Reznik in Moscow at email@example.comTo contact the editors responsible for this story: Jeffrey D Grocott at firstname.lastname@example.org;Alan Katz at email@example.com;Gregory L. White at firstname.lastname@example.org;Winnie O'Kelley at email@example.comFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Boeing (BA) is set to report its Q3 earnings results on October 23. Reuters-polled analysts foresee more dismal financial results for the company.
Southwest Airlines announced that it had removed all Boeing MAX aircraft from its flight schedules until February 8—its seventh extension in seven months.
General Dynamics' (GD) Aerospace segment revenues in the third quarter of 2019 are likely to have benefited from increased G500 aircraft deliveries.
Production cuts and lower delivery volumes of Boeing's (BA) 737 might have weighed on its commercial business performance in the third quarter of 2019.
The Zacks Analyst Blog Highlights: Johnson & Johnson, Boeing, Pfizer, Qualcomm and Mitsubishi UFJ Financial
Investing.com – Boeing (NYSE:BA) shares were off more than 4% after a Reuters report said company employees may have misled the Federal Aviation Administration about a key safety system on the grounded 737 MAX.
(Bloomberg) -- The European Union pledged to impose tit-for-tat tariffs against the U.S. in a longstanding transatlantic dispute over illegal aid to aircraft manufacturers.The renewed vow by European trade chief Cecilia Malmstrom came as President Donald Trump’s administration triggered duties on $7.5 billion of EU goods ranging from planes to spirits in retaliation over market-distorting subsidies to Airbus SE.Malmstrom said the EU would apply its own levies on a range of U.S. products “in due course” as a result of unlawful aid to Boeing Co., signaling the bloc will hold its fire until the World Trade Organization fixes the damages sum in a decision due next year. The EU has drawn up a plan for countermeasures worth $12 billion.“This step leaves us no alternative but to follow through in due course with our own tariffs in the Boeing case, where the U.S. has been found in breach of WTO rules,” Malmstrom said in an emailed statement on Friday in Brussels.Europe has been gearing up for an escalation of the 15-year-old fight over aircraft subsidies while warning the Trump administration against resorting to tariffs and urging it to seek a negotiated solution.“The EU and the U.S. have a joint responsibility to sit down and negotiate a settlement that is balanced and compliant with the WTO,” Malmstrom said on Friday. “Imposing tariffs on each other serves nobody’s long-term interest. It will inflict very significant damage to the highly integrated supply chain of the aircraft sectors in the U.S. and the EU and will result in collateral damage to many other sectors already suffering under the current trade tensions.”To contact the reporter on this story: Jonathan Stearns in Brussels at firstname.lastname@example.orgTo contact the editors responsible for this story: Ben Sills at email@example.com, Richard Bravo, Peter ChapmanFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Despite severe market volatility, the Dow is still in positive territory with a gain of 15.9% year to date. This is an excellent performance after a disappointing 2018.
well before the aircraft was involved in two fatal accidents, an admission the Federal Aviation Administration says was withheld during its investigation into the crashes. The text messages from Mark Forkner, then Boeing’s chief test pilot for the 737 Max, said the aircraft’s anti-stall system — a focus of investigations into the crashes that killed 346 people — was “running rampant” on a simulator.
Investing.com - U.S. futures were tepid on Friday after China posted its weakest growth in nearly three decades, increasing concerns about the impact of its trade dispute with the U.S.
Intel stock has lagged far behind the broader semiconductor industry's 2019 climb. So let's take a look at what to expect from Intel's upcoming Q3 2019 earnings results to see if INTC stock might be set to pop...
Missouri Republican Senator Josh Hawley tells Yahoo Finance's On the Move that Beijing is the biggest security threat to this country in the 21st century
Signs of hope for a Brexit deal and U.S.-China trade war updates. Some disappointing U.S. manufacturing and retail data. Q3 earnings results from the likes of Netflix. And why Google parent Alphabet is a Zack Ranks 1 (Strong Buy) stock. - Free Lunch
The GM strike hurt US manufacturing for September while earlier this month, Boeing’s orders fell. Now Trump's 2020 campaign could take a hit.