) -- Shares in 2010 Dow leader
were rising Tuesday after the company said it will boost 737 production.
In early afternoon trading, Boeing stock was trading at $66.90, up $2.08 or about 3%. For the year, Boeing is up about 23% and is one of just four Dow stocks with double-digit gains.
After a recent series of hints that it would raise 737 production, the company announced it would take the rate from a planned 34 airplanes a month to 35 per month in early 2012. The move follows a May announcement of an increase from 31.5 aircraft per month to 34. "Today's announcement acknowledges the anticipated long-term growth in this market segment and the continued pressure to raise airplane output to match expected market demand," Boeing said Tuesday in a prepared statement.
"Boeing's decision to increase production on the 737 for the second time in just a month shows that it wants to fulfil demand from customers who obviously are finding better funding sources to take advantage of a traffic recovery," said Saj Ahmad, who blogs about aircraft makers at
-- Written by Ted Reed in Charlotte, N.C.