 "Boeing Stock Climbs On 737 MAX Production Restart Report, Retail Mood Flies Higher")
synopsis
The development comes at a crucial time for the debt-laden company that has 4,200 orders for the jetliner from airlines looking to expand and meet burgeoning travel demand, a Reuters report said.
Retail sentiment for Boeing improved on Stocktwits after a Reuters report said the company restarted the production of its 737 MAX jetliner last week, a month after the conclusion of the seven-week strike by 33,000 factory workers. Shares of the firm opened over 2% higher on Tuesday morning.
The development comes at a crucial time for the debt-laden company that has 4,200 orders for the jetliner from airlines looking to expand and meet burgeoning travel demand, according to the report.
Boeing has been looking forward to hiking its monthly 737 MAX production target to 56 planes a month but has faced multiple headwinds, including two fatal crashes, heightened regulatory scrutiny, and the COVID-19 pandemic.
The Federal Aviation Administration (FAA) had capped the production at 38 planes per month in January after a door panel that missed four key bolts flew off an Alaska Airlines flight.
Last week, Boeing faced another setback when a federal judge rejected a plea agreement between the company and the US government after the firm said it would plead guilty to deceiving the ahead of two fatal 737 Max crashes.
Meanwhile, as part of the wider cuts announced in October, Boeing is reportedly slashing 396 jobs at different locations in Washington, according to Reuters that citing a notice from the state's Employment Security Department.
Following the production restart report, retail sentiment on Stocktwits flipped into the ‘bullish’ territory (66/100) from ‘neutral’ a day ago, accompanied by high retail chatter.
Most retail chatter on Stocktwits indicated a bullish take on the stock.
Boeing also reported last week that the U.S. Army ordered three additional CH-47F Block II Chinooks from the company. The Lot 3 contract award, valued at $135 million, is part of the U.S. Army’s ongoing modernization efforts, Boeing said.
Boeing shares have lost over 37% since the beginning of the year.
For updates and corrections, email newsroom[at]stocktwits[dot]com.<
subscribe to Asianet News Whatsapp channel by clicking here.
subscribe to Asianet News on YouTube by clicking here.