Boeing Stock Boosted by New Emirates Order, Tentative Strike Agreement: Retail Still Bearish

Boeing Co’s ($BA) stock climbed 3% pre-market on Monday, driven by key customer Emirates ordering five more 777 freighters, and the company reaching a tentative agreement to resolve the ongoing machinists' strike.

However, the Emirates order was finalized in September, before the airline criticized Boeing for missing deadlines. “I fail to see how Boeing can make any meaningful forecasts of delivery dates,” Emirates President Tim Clark said last week.

Meanwhile, Boeing’s tentative agreement with workers marks a fresh attempt to end the two-month machinists' strike, finalized over the weekend.

The proposal includes a wage hike of 35% spread out over the next four years, a guaranteed annual bonus of at least 4% and an additional bonus of $7,000 if the workers approve the new contract. 

The union will vote on the new proposal this Wednesday, the same day that the plane maker is set to announce its third-quarter earnings. 

Retail sentiment on Stocktwits was trending in the ‘bearish’ (44/100) territory for the stock. Users on the platform anticipate Boeing will miss Wall Street estimates, expressing concerns that the new contract could further add pressure to the aerospace manufacturer’s already tight financial liquidity.

According to the Wall Street Journal, Boeing may be mulling over asset sales to raise cash levels of its struggling business. “Boeing is exploring asset sales that could bring in much-needed cash while shedding non-core and underperforming units,” it said in its report citing sources familiar with a recent discussion between Boeing’s board and executives at its headquarters in Arlington, Virginia.

Boeing’s stock has lost 37% of its value this year and is down 12% over the last 12 months. The shares are currently trading at lows last seen in November 2022.

For updates and corrections email newsroom@stocktwits.com

Read More: Boeing's Stock Drops Amid Workforce Cuts And Wall Street Doubts: Retail Sentiment Split

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