Two Ways: Slow Boeing in Aeronautical Sector
Strengthen your portfolio in good times and bad.
Bad News for Boeing
Boeing (BA) shares are in focus this morning. The manufacturing conglomerate, whose products range from commercial aircraft to military helicopters, revised its fiscal 2008 and fourth-quarter earnings report to reflect a bigger loss for the quarter and a smaller profit for the year. In a statement yesterday, the company said the revision is due to "a reduction in collateral values of aircraft in our customer financing portfolio" and increased liabilities from an arbitration award.
Boeing said it lost $0.12 per share in the fourth quarter, $0.04 more than it reported on January 28, and gained $3.67 per share in 2008, also $0.04 less than its prior figure of $3.71.
From the Bull Pen: Bulls can look elsewhere. One can consider US Steel (X) for a trade. A sell stop can be set below $34.
From the Bear Cave: Clearly, defense stocks face a number of challenges. Professor Jon Markman even mentioned last week on the Buzz that Secretary of Defense Robert Gates said the "spigot of spending opened by 9/11 is closing." Bears can play the downside in Boeing on the thesis that $40 support will break. A buy stop can be set above $43-44.
Quick Check Around the World
Asian trading closed with the Hang Seng 0.81%, Nikkei -0.29%, Sensex 0.66%, Taiwan 0.70% and Shanghai 1.82%.
Glancing towards Europe, we see the CAC -1.26%, DAX -1.34%, FTSE 1.11%
As of 8:00 a.m. EST, S&P futures are trading -3 to 862.00, and Nasdaq futures are -1 to 1275.00.
A Look At Commodities
Crude oil is trading +1.33 to 40.89. Gold is +6.20 to 899.00. Silver is +0.14 to 12.970, and copper -3.70 to 157.60.
The dollar index is +0.2600 to 85.3100.
On the Radar
10:00 Wholesale Inventories -0.7%
10:00 IBD/TIPP Economic Optimism
Click here for the full trading radar.
Good luck today!
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