Shares of Boeing Co. jumped more than 5% in the extended session Wednesday after the jet maker announced the layoffs of 6,770 U.S. workers, with the first employees affected being notified this week. International locations also are planning layoffs that will be announced on their own timelines, Boeing said. "The COVID-19 pandemic's devastating impact on the airline industry means a deep cut in the number of commercial jets and services our customers will need over the next few years, which in turn means fewer jobs on our lines and in our offices," Boeing said. Boeing said it is seeing "green shoots" after the devastation wrought by the virtual halt on air travel, but the industry will take "some years to return to what it was just two months ago." Some of its airline customers report that "reservations are outpacing cancellations on their flights for the first time since the pandemic started," Boeing said. Some of its businesses, such as defense, will continue hiring, the company said. In a separate press release, the company announced it was resuming production of its 737 Max aircraft in Renton, Wash. The program restarted at a low rate as the company implements safety and product quality checks, it said. Boeing halted the 737 Max production in January. Production "will gradually ramp up" this year, the company said. The 737 Max has been grounded worldwide following two deadly crashes less than five months apart that were linked to a faulty anti-stall system. Shares of Boeing ended the regular trading day up 3.3%.
Jim Cramer discusses the stock market today including the demand for Tesla cars, President Trump and Twitter, Disney World and holding Boeing stock.
SpaceX is slated to launch two NASA astronauts into space on Saturday after bad weather nixed Wednesday’s takeoff.
The number of deaths from the coronavirus that causes COVID-19 rose above 353,000 on Wednesday, as the World Health Organization said the Americas are at the center of the pandemic following surges in infections in Brazil, Peru, Chile and others in the past few days.
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Boeing announced on Wednesday (May 27) it's cutting over 12,000 U.S. jobs - with more on the way. They include nearly 7,000 involuntary layoffs this week. The largest American planemaker is trying to restructure over the global health crisis. Boeing also disclosed several thousand more layoffs in the months to come but did not say where those would take place. The company is slashing costs as a sharp drop in travel demand pulls Boeing's falling fortunes down even further. The company grounded its 737 MAX jet last year after two fatal crashes of the plane. The job cuts include nearly 10,000 employees in Washington state. And in April, Boeing said it would cut 10% of its worldwide workforce, made up of some 160,000 employees, by the end of the year. However, Boeing also raised $25 billion in a bond offering last month which allowed it to avoid taking government aid. That's despite the company recording zero orders for its planes for the second time this year -- marking the worst start to the company's year since 1962.
Bad weather canceled today's SpaceX launch just 20 minutes before liftoff, leaving astronauts to wait a few more days to take off.
Eight glasses of water a day. That’s the old recommendation you and I have heard growing up. And while we all know the importance of hydration to our health, some methods of hydration are more efficient than others. At least, that’s the premise that Hydrant w…
The Europas Awards — which have been recognising the hottest European tech startups in since 2009 — are now open for the public voting stage, prior to the formal judging process. The entries have been sorted and sifted by journalists to compile an editorially…
President of the Association of Directors of Public Health questions why her members’ expertise was not sought earlier in the coronavirus crisis
What happens when memers meet the subject of their memes? In the case of the BA Test Kitchen meeting the brains behind @meme_appetit, pure gold. Harry Kersh and Will Martin started the accounts when they discovered their shared love of BA videos, and the Inst…
The latest 13F reporting period has come and gone, and Insider Monkey is again at the forefront when it comes to making use of this gold mine of data. Insider Monkey finished processing 821 13F filings submitted by hedge funds and prominent investors. These filings show these funds' portfolio positions as of March 31st, 2020. […]
Move to start up production of Boeing's troubled aircraft comes even as company cuts thousands of jobs.
May.27 -- Chad Anderson, managing partner of Space Capital, discusses what the scrubbed launch of Elon Musk's SpaceX rocket delay means for NASA and SpaceX on "Bloomberg Technology."
The destination for the Falcon 9 rocket and Crew Dragon spacecraft with astronauts Doug Hurley and Bon Behnken aboard, is the International Space Station.
Among the Dow Jones stocks, Apple and Microsoft are among the top stocks to buy and watch in May 2020.
Shares of Spirit AeroSystems (NYSE: SPR) gained 10.7% on Wednesday, as key customer Boeing (NYSE: BA) restarted its 737 Max production line. Spirit's fortunes are closely tied to Boeing, its former parent, and the restarted production is good news for beleaguered Spirit shares. Spirit AeroSystems makes the fuselages for the 737 Max, and the company was having troubles well before the COVID-19 pandemic, due to the aircraft being grounded after a pair of fatal crashes.
Since the turn of the year, Boeing (BA) shares have yet to finish a month in the green, adding up to a cumulative year-to-date loss of 54%. Boeing, along with the rest of the aviation sector, has been pummeled by the coronavirus. Although the ship has been somewhat steadied since the March lows, when the A&D giant appeared on the verge of bankruptcy, Canaccord analyst Kenneth Herbert believes investors should wait “for better visibility on order outlook,” before backing the stock.Dusting off his “aerospace cycle models,” the 5-star analyst believes there are two main issues that need addressing in order to steady investors’ jittery nerves.First up, what is the timeframe for airlines to increase order activity?No doubt this is an essential issue. A book full of orders will indicate “increased confidence in the travel outlook,” and thereby reflect favorably on the industry’s financial outlook. The recent numbers though, are anything but confidence boosting. BA “booked negative 255 net orders in 2020,” including 281 Max cancellations.“We expect additional cancellations on the MAX, with order activity likely not improving until 2021. While BA can spur demand with pricing, the risk of lower crude prices, elevated retirements, airline financial health and MAX inventory liquidation will contribute to lower replacement demand and capacity growth,” Herbert said.The second issue concerns the expected production rates. Herbert believes BA is aiming for MAX production rates of 42 a month in 2022 and then up to 52 a month in 2023. Additionally, Herbert believes BA is looking to bring back 787 rates to 10 a month by 2023.Based on current backlogs and potential delivery schedules, Herbert argues these plans are “overly ambitious.”Herbert explained, “The relatively strong orders in 2016-2018 imply that Boeing is entering the downturn with one of the strongest backlogs (a positive), but this will limit near-term order activity and lead to cancellation risk.”Therefore, despite acknowledging “the time to buy deep cyclical stocks like Boeing is when the industry is troughing,” the lack of visibility on the “pace of improvement in air travel and when airlines will start to order aircraft again,” is keeping the analyst on the sidelines.Accordingly, Herbert reiterated a Hold rating along with a price target reduction – down from $175 to $155. (To watch Herbert’s track record, click here)Looking at the consensus breakdown, opinions on BA are more split. the fence sitters come in slightly ahead, with 11 Hold ratings compared to 8 Buys and single Sell received over the previous three months. The upside potential lands at 8% as a result of its $162.11 average price target. (See BA stock analysis on TipRanks)To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.
The aircraft maker's best-selling plane was grounded in March 2019 after the second fatal 737 MAX crash in five months. Boeing declined to say what the current production rate is. Boeing said last month it expected to resume 737 MAX deliveries in the third quarter following regulatory approvals, with production restarting at low rates in the second quarter before gradually increasing to 31 per month in 2021.
When passenger planes start flying again, the world of air travel will be very different.
Unite accuses airline of using coronavirus crisis as cover for betraying its workforceThe Unite union has claimed British Airways plans to fire the vast majority of its workforce before rehiring them on reduced pay and worse terms.BA informed unions last mont…
In a bullish day for the coronavirus market rally, several leading stocks rebounded from key levels, often offering new buying opportunities. Boeing 737 Max production resumed.
Boeing is laying off over 6,700 of its U.S. workers, with "several thousand” more layoffs planned. Yahoo Finance’s Emily McCormick and Akiko Fujita discuss.
Job cuts by U.S. state and local governments whose budgets have been crushed fighting the COVID-19 pandemic and more second-wave layoffs in the private sector likely contributed last week to a 10th straight week of more than 2 million Americans seeking unemployment benefits. The Labor Department's weekly jobless claims report on Thursday, the most timely data on the economy's health, is also expected to show the number of people on jobless benefits hitting a new record high in mid-May. "I am concerned that we are seeing a second round of private sector layoffs that, coupled with a rising number of public sector cut backs is driving up the number of people unemployed," said Joel Naroff, chief economist at Naroff Economics in Holland, Pennsylvania.
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A drop in travel due to the pandemic worsened the situation for the company, which was already in crisis.
Boeing has resumed production of the troubled 737 Max jet, though regulators haven't cleared it to re-enter passenger service.
Optimism surrounding the reopening of the U.S. economy appears to be the driving force, although it remains to be seen whether that optimism is warranted. Disney put forth plans to reopen some of its parks in July, while Boeing disclosed that it would layoff nearly 7,000 U.S. employees this week in a bid to cut costs. The pandemic has been a disaster for Disney, which relies on its parks for a significant portion of revenue and profits.
Here's what you need to know before the markets open. 1.A fish farmer's stock price has skyrocketed more than 2,500% in a year, and nobody really knows why. International Holdings Co. PJSC, an Abu Dhabi-based holding company, has brushed off the coronavirus p…