Boeing (BA) - Get Report shares, battered of late, seem desensitized to its 737 aircraft problems. A group of House representatives have found that the company was not clear about technical problems with the 737, raising questions about the planes’ return to service.
The stock fell 0.77% to $258 a share Friday, after the Coronavirus and generally pressured sentiment has had the stock already down 22% for the year, easily outpacing the broader U.S. market’s loss of 8%. The Dow Jones, Friday, fell just over 2%.
Congress said Boeing was “marred” by technical problems, according to a CNBC report. The representatives’ investigation revealed the company was far from transparent about those.
Software and mechanical problems on the company’s flagship product have been coupled with the lack of clarity from the company throughout the scandal. Investors have priced in the negative impact of zero 737 sales for some time period going forward.
Recently, Boeing said it think the Federal Aviation Authority will let it fly the plane again starting in the summer, although it’s not inconceivable that that return time table is in question now.
General Electric (GE) - Get Report, which supplies parts to the 737, saw its shares fall 5.65% Friday. Analysts had been growing positive on the 737 outlook and therefore revenue for GE’s 2020 campaign.
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