Boeing’s “Not Cool” Year

Today, we learn Dennis Muilenburg (involuntarily) stepped down as CEO of Boeing; in light of which, we take a look back at Boeing’s year.

The aerospace giant started the year reeling from two fatal crashes involving an Indonesian Lion Air plane in Oct. 2018 and then an Ethiopian air disaster in Mar. 2019.

Thereafter, the crashes culminated in the worldwide grounding of Boeing’s 737 Max jets.

Here’s what we’ve said about Boeing this year…

Your Rundown for Monday Dec. 23, 2019:

Boeing Space Ferry Failure

Mar. 12: Boeing’s selloff yesterday is a negative indicator for the Dow. The DJIA is price-weighted — not cap-weighted — so Boeing is the most important stock of all the 30 stocks in the Dow Jones.

You can make a giant bear case against Boeing and by inference the Dow Jones Industrial Average because Boeing is the largest company. Realistically, Boeing’s not going anywhere. It might just be a case of too big to fail.

Sept. 23: While Boeing (BA) shares have been stuck in range between $330 to $380 in 2019, they might be poised for a breakout — especially if 737 MAX planes receive regulatory approval.

Reasons to buy Boeing? The company has weathered other plane-specific issues in the past; plus, Boeing offers shareholders a substantial dividend yield.

Nov. 18: Since that time, Boeing’s been “aggressive” in its efforts to get the 737 Max planes back in service, Reuters reports.

“Boeing said it expected the FAA to certify the 737 MAX, issue an airworthiness directive and unground the plane in mid-December.

“That timetable sent the planemaker’s stock price soaring,” says Reuters.

Which brings us to today.

The 737 Max jets are still grounded as the FAA hasn’t responded favorably to Boeing’s “aggressive” pushback.

Adding to upheaval at Boeing, over the weekend, things didn’t go according to plan for Boeing’s Starliner program — a NASA-sponsored effort to ferry astronauts to the International Space Station… a project that’s two years behind schedule, by the way.

Boeing’s “Starliner successfully launched into space aboard a rocket Friday morning,” CNN Business reports, “but after detaching from the launch vehicle, it failed to put itself on the correct path to the space station.” (Hey, at least the spacecraft landed safely in the New Mexico desert.)

Responding to Starliner’s failure, Jim Chilton — senior vice president of the Space and Launch division of Boeing Defense — said succinctly: “Not cool.”

Back to Boeing’s leadership, the company’s CFO Greg Smith will step in as CEO. Will he be able to turn the tide in 2020? Maybe so. BA shares are up 2.5% this morning.

Market Rundown for Monday, Dec. 23, 2019

S&P 500 futures are up 5 points to 3,231.

Oil’s down 14 cents to $60.30 for a barrel of West Texas crude.

Gold is up $6.10 per ounce to $1,487.

Bitcoin’s added $15.78 — it sits at $7,547.94.

We’ll be taking off tomorrow and Christmas, but we’ll be back in touch Thursday. Enjoy the holidays!

For the Rundown,

Aaron Gentzler

Aaron Gentzler

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Aaron Gentzler

Aaron Gentzler is the publisher of Seven Figure Publishing. He is also the editor of The Rundown and has been with Agora Financial / Seven Figure Publishing since 2005. He's been covering technology and markets for over a decade.

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