Shares of Boeing as well as Apple Inc. are actually trading lower Friday afternoon, leading the Dow Jones Industrial Average selloff. The Dow DJIA, -0.87 % was most recently trading 327 points lower (-1.2 %), as shares of Boeing BA, -3.81 % and Apple Inc. AAPL, -3.17 % have contributed to the index’s intraday decline. Boeing’s shares have dropped $5.16, or maybe 3.1 %, while those of Apple Inc. have declined $3.34 (3.0 %), combining for an approximately 56-point drag on the Dow. Additionally contributing substantially to the decline are actually Home Depot HD, -1.70 %, Microsoft MSFT, -1.24 %, as well as Salesforce.com Inc. CRM, -0.71 %. A $1 move at some of the index’s thirty parts results in a 6.58 point swing.
Boeing Gets Good 737 MAX News, but the Stock Is actually Sliding
Bloomberg reported that the National Transportation Safety Board says Boeing’s recommended fixes for the troubled 737 MAX jet are adequate. That’s news which is good for the business, but the stock is lower.
The NTSB is a government organization which conducts impartial aviation accident investigations. It looked into each Boeing (ticker: BA) 737 MAX collisions and made seven suggestions in September 2019 following two tragic MAX crashes.
Congressional 737 Max Report Will be a Warning for Boeing Investors
It has been a difficult season for Boeing (NYSE:BA), but the aerospace gigantic and the shareholders of its must get some much needed good news before year’s end as regulators seem to be close to making it possible for the 737 Max to resume flying.
With the stock off almost 50 % season to date and also the Max’s return a key boost to no cost cash flow, bargain hunters might be attracted by Boeing shares. But a scathing new article from Congress on the problems that led up to a pair of fatal 737 Max crashes, together with the plane’s subsequent March 2019 grounding, is a reminder Boeing’s conflicts are far greater than merely getting the plane airborne once again.
“No respect for an expert culture” Congressional investigators inside the report blame the crashes on “a horrific culmination of a number of defective specialized assumptions by Boeing’s engineers, an absence of transparency on the part of Boeing’s handling, and grossly inadequate oversight” by the Federal Aviation Administration. It also place a lot of the blame on Boeing’s bodily culture.
The 239-page report is actually centered on a slice of flight management program, considered the MCAS, which failed in the two crashes. The study found that Boeing engineers had determined difficulties that could make MCAS to be caused, maybe incorrectly, by an individual sensor, as well as worried that repeated MCAS changes could ensure it is difficult for pilots to control the airplane. The investigation found that those safety concerns had been “either inadequately addressed or just dismissed by Boeing,” and that Boeing didn’t suggest the FAA.
