A Lone Bright Spot In Today’s Market
Dear Rundown Reader,
First things first.
Apologies for using the COKE ticker in place of the KO ticker yesterday for Coca-Cola shares. We regret the editing error.
Now, a recent letter on Wells Fargo:
“I have been totally confused for a long time why people think that paying a fine to the government is a suitable punishment for people like Wells Fargo.”
Government agencies are the only ones who can hold companies like Wells Fargo accountable. It’s like paying protection money to the mob. Sad, but true.
For your Rundown.
Another look at a company doing things right and why this could reward shareholders handsomely this year.
Your Rundown for Thursday, April 26, 2018…
Boeing Flies High Off Earnings
Markets are in an all-out war with growing negative sentiment.
In a sea of uncertainty, folks are searching hard to find bright spots in the market.
Those folks want to take a look at Boeing (NYSE: BA).
BA’s numbers were fantastic in Q1.
Earnings rose to $3.64 per share from $2.17 a year ago, crushing the Street’s consensus forecast of $2.58 per share, according Reuters.
BA’s stock reacted in kind, rising from $338.12 at Wednesday’s open to a close of $342.86.
It’s what we expect to see after such a stellar report.
But many companies posting strong earnings have dropped. Leading to the question, what’s different for BA?
It all comes down to having solid operations. A few growth catalyst help too.
BA has both.
A resurgence in the air freight industry is pumping new life into BA’s bottom line.
BA plans to up production of its 767 air-cargo freighter by 20% through 2020, as reported by Bloomberg.
Additionally, BA is seeing a revenue bump from its military contracts.
Bloomberg reports BA is close to delivering on a $44 billion contract with the U.S. Air Force. The expectation being this will lead to new overseas contracts.
Speaking of overseas. Boeing is also set to open its first factory in China. A market long dominated by rival Airbus.
The Wall Street Journal reported yesterday, construction is currently underway near Shanghai and is a “sign that the aerospace giant is taking trade tensions in stride.”
An aging fleet of U.S. airplanes could also help propel BA through the 2018.
There are real problems with the current U.S. commercial air fleet.
Multiple investigative reports have revealed a massive spike in commercial airline engine failures recently.
All this mixed together is why BA is a lone bright spot in the market.
They have the operations and growth plans to back up their top-line numbers.
Unlike many other companies who are coming up lame.
Strong operations talk. Top-line numbers walk in today’s market climate.
Now, turning to the markets this morning…
Market Rundown for Thurs., April 26
S&P 500 futures are up 8.75 at 2,653.
Oil’s up $0.67 at $68.72.
Gold’s up $2.10 to $1,324.
Bitcoin slides to $8,885 this morning, according to CoinDesk.
We’ll talk again on Friday.
For the Rundown,