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Labor Issues

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With the presidential election approaching, investor caution is evident, leading to a flat week for Wall Street. Treasury yields rose, and the IMF warned about U.S. debt. Tesla's stock surged 21% after announcing plans for affordable models. Boeing faces a prolonged strike, while GM's earnings exceeded expectations. Holiday spending is expected to rise, benefiting retail stocks.

Portfolio Pulse from Piero Cingari

October 25, 2024 | 8:40 pm

BA

Goldman Sachs analyst Noah Poponak maintains a bullish outlook on Boeing Co. (NYSE:BA) despite its weak Q3 performance, citing it as a 'long-term deep-value opportunity.' Poponak reaffirms a Buy rating with a $200 price target, highlighting robust aircraft demand, planned capital raises, and new leadership as key factors for recovery. Boeing's Q3 results showed revenue of $17.84 billion and a core EPS loss of $(10.44), with significant losses in the Commercial Airplanes segment due to production setbacks and a machinists' strike. The Defense, Space & Security division also faced challenges, while Global Services showed improved margins. Boeing plans to raise $18 billion to support its balance sheet amid ongoing labor disputes and production challenges.

Portfolio Pulse from Piero Cingari

October 25, 2024 | 3:23 pm

SAVE

Spirit Airlines shares rose following the announcement of the sale of 23 Airbus A320 aircraft and job cuts.

Portfolio Pulse from Benzinga Newsdesk

October 25, 2024 | 12:46 pm

BA

Boeing reported a $6 billion Q3 loss, its largest since 2020, amid a labor strike and turnaround efforts. Analysts suggest the strike is costing $50 million daily and emphasize the need to shore up the balance sheet. BofA maintains a Neutral rating with a $170 target, while RBC Capital reiterates an Outperform rating with a $200 target.

Portfolio Pulse from Erica Kollmann

October 24, 2024 | 10:10 pm

SAVE

Spirit Airlines has identified $80 million in annualized cost reductions, primarily through workforce reductions, to be implemented starting in early 2025.

Portfolio Pulse from Benzinga Newsdesk

October 24, 2024 | 9:24 pm

BA

SPR

Spirit AeroSystems is considering additional furloughs or layoffs if the Boeing machinists' strike extends beyond November 25. The strike, which began on September 13, has already led Spirit to prepare for 700 temporary furloughs. Boeing is in the process of acquiring Spirit, and the strike is impacting the aerospace supply chain.

Portfolio Pulse from Benzinga Newsdesk

October 24, 2024 | 8:54 pm

BA

Boeing's machinists have rejected a proposed labor deal, prolonging a strike that has already cost the company $2 billion. The rejection adds uncertainty and potential delays to Boeing's recovery, with analysts estimating a $50 million daily cost. Boeing shares fell 1.36% following the news.

Portfolio Pulse from Erica Kollmann

October 24, 2024 | 4:38 pm

BA

TSLA

Boeing machinists have rejected a deal, extending their strike, while Tesla's stock surges following strong earnings. Additionally, Treasury yields have dropped.

Portfolio Pulse from Benzinga Newsdesk

October 24, 2024 | 3:35 pm

BA

Moody's believes Boeing can meet the IAM's pre-strike demand for a 40% compensation increase. The focus remains on Boeing's ability to raise new equity capital and achieve a 737 production rate of 38 per month, which are key factors in Moody's ratings review.

Portfolio Pulse from Benzinga Newsdesk

October 24, 2024 | 3:22 pm

BA

Moody's states that the recent rejection by the IAM has little impact on Boeing's Baa3 rating review. They believe an agreement will be reached with terms Boeing can handle, but IAM's pension demand is unlikely to be met. The strike resolution is crucial for production restart, not financial terms.

Portfolio Pulse from Benzinga Newsdesk

October 24, 2024 | 3:21 pm