What Happened?
Shares of aerospace and defense company Boeing (NYSE:BA) fell 5.9% in the morning session after South Korea plans to inspect all Boeing 737-800 jets operated by its airlines after a devastating crash on December 29, 2024, reportedly claimed 179 lives. Investigators aim to determine the cause of the crash as part of this review. The incident and ensuing investigation are likely to create uncertainty regarding Boeing's operations in South Korea and related markets, which could affect investor's sentiment toward the business.
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What The Market Is Telling Us
Boeing’s shares are not very volatile and have only had 7 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The previous big move we wrote about was 20 days ago when the stock gained 5.8% on the news that the company reported that it had restarted production of the 737 MAX jets. The news provides more constructive insight into the company's operations after 33,000 workers ended a seven-week strike in November. The company added, "Our team has worked methodically to restart factory operations in the Pacific Northwest. We have now resumed 737 production in our Renton factory, with our Everett (Washington) programs on plan to follow in the days ahead."
Boeing is down 30.3% since the beginning of the year, and at $175.51 per share, it is trading 30.3% below its 52-week high of $251.76 from January 2024. Investors who bought $1,000 worth of Boeing’s shares 5 years ago would now be looking at an investment worth $537.32.
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