Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Boeing's Guidance Crash Lands

By

The earnings parade will yield some casualties.

PrintPRINT

Editor's Note: The following was posted in real time on our premium Buzz & Banter (click for a free trial). It's being shared here for the benefit of the Minyanville community.

Greetings from New York, where I remain at a loss as to how I could talk about Boeing (BA) without sneering. The company reported a jaw-dropping loss of $1.5 billion, managing to actually miss EPS despite the huge $3.6 billion write-down of the 787 being expected by analysts. Boeing also announced lower guidance for the year, blaming the problem on "dwindling demand in its commercial airplane and defense business".

The upside? That Dreamliner is going to be cool, as soon as Boeing's engineers learn how to keep the wings on it. Here's what else I'm watching as I prepare for an afternoon out of the office:

  • I'm going to miss McDonald's (MCD) report. I'm still long the stock despite fellow multinational Coca-Cola (KO) reporting a fizzless quarter earlier in the week. I don't get all that nervous about positions at this point, but I can see a bit of a tantrum coming on if Micky D's fails.

  • One position I'm not worried much about? The USO oil ETF. Bad dollar, ever-present demand, and an ongoing love affair between Americans and big cars that can crush things all work in favor of higher oil prices. In the same vein I'm cool with my gold ETF, the GLD. The dollar trade may be late, but it hasn't exactly reversed trend and the trend is very much lower. For now I'd rather sit in proxies for oil and gold than cash.

  • Then again if I lived in, say, France I'd be plenty content to stay in Euros.

  • My bestest buddies at Disney (DIS) are on the verge of unveiling "Keychest", a device they promise will make consumers use their DVDs as coasters or lousy Frisbees. Disney hasn't had much success with devices in the past, but this one sounds like a winner. As it turns out, "digital" is a big deal.

  • With that, I'm off to scurry all about Westchester. Have a safe and productive day, Minyans. And no one email me McDonald's results; I want to squint at the news with a sense of dread myself.


Market thoughts & trading ideas in real time from Macke & 30 other top traders - 14 day FREE trial to Buzz & Banter
< Previous
  • 1
Next >
Positions in USO, GLD, MCD and DIS

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

PrintPRINT
 
Featured Videos

WHAT'S POPULAR IN THE VILLE