Get the app
Get the app

Join millions of investors on Stash

Investing, simplified

Start today with as little as $5
Get the app
Money News

Boeing’s Strong Earnings Give Stock Market a Boost

January 31, 2018

  • Boeing reported a significantly stronger fourth quarter than analysts expected
  • The news sent Boeing’s stock soaring in morning trading
  • A single company’s stock can affect the daily movement of an entire index
1 min read

Shares of plane and rocket manufacturer Boeing zoomed skyward on Wednesday, following news of the company’s strong fourth quarter earnings.

As Boeing’s stock price took off, it helped break a two-day losing streak on Wall Street on Wednesday as major indexes soared.

Boeing, maker of 777 and 737 jetliners and important defense industry equipment, beat analyst expectations for the quarter that ended December 31, as it ramped up deliveries for domestic aircraft and secured important defense and space contracts, the company said.

Tax cuts and military spending

Boeing cited the influence of the massive corporate tax cut for its strong fourth quarter, helping it to bring in $3.13 billion of profit, nearly double its profit compared to the fourth quarter a year earlier.

Revenue, which is the total amount of cash a company derives from sales, increased 9% to $25 billion compared to fourth quarter in 2017.

The company is also benefiting from the ramp up in federal military spending, according to reports.

Last week, however, Boeing lost a trade dispute with Canadian competitor Bombardier. It sought a 300% tariff on a class of commercial jets Bombardier sells to U.S. airline companies, according to reports. The U.S. International Trade Commission, which has the authority to set tariffs domestically, voted unanimously against the proposal.

End of a two-day slump

The news of Boeing’s strong financial quarter sent its shares up 6% in morning trading to $358.18, an increase of nearly $20 per share, as key indexes jumped. The Dow Jones Industrial Average increased 203 points to 26,280 before noon, and the S&P 500 rose 12.72 points to 2,834.*

A single company can have a big impact on what happens on a daily basis to a stock market index.

Boeing is an important component of the Dow, which has 30 stocks.

Earlier in the week, weak sales of Apple’s iPhone X factored into the Dow’s most significant decline in eight months.

One stock, big impact

A single company can have a big impact on what happens on a daily basis to a stock market index.

Boeing, which has a market cap of $211 billion, is one of the largest companies listed on the Dow, and significant movement of its share price can affect the index. The Dow uses company share prices to calculate its average.

By Jeremy Quittner
Jeremy Quittner is the senior writer for Stash.

*Source: Yahoo Finance, January 31, 2018

Next for you
Investment Profile: Defending America

Investment Profile

Bonds Worldwide

An International Bond ETF on Stash

Learn more
Explore more articlesChoose a topic to learn more about
social media politics market news Retirement Careers

This material has been distributed for informational and educational purposes only, represents an assessment of the market environment as of the date of publication, is subject to change without notice, and is not intended as investment, legal, accounting, or tax advice or opinion. Stash assumes no obligation to provide notifications of changes in any factors that could affect the information provided. This information should not be relied upon by the reader as research or investment advice regarding any issuer or security in particular. The strategies discussed are strictly for illustrative and educational purposes and should not be construed as a recommendation to purchase or sell, or an offer to sell or a solicitation of an offer to buy any security. There is no guarantee that any strategies discussed will be effective.

Furthermore, the information presented does not take into consideration commissions, tax implications, or other transactional costs, which may significantly affect the economic consequences of a given strategy or investment decision. This information is not intended as a recommendation to invest in any particular asset class or strategy or as a promise of future performance. There is no guarantee that any investment strategy will work under all market conditions or is suitable for all investors. Each investor should evaluate their ability to invest long term, especially during periods of downturn in the market. Investors should not substitute these materials for professional services, and should seek advice from an independent advisor before acting on any information presented. Before investing, please carefully consider your willingness to take on risk and your financial ability to afford investment losses when deciding how much individual security exposure to have in your investment portfolio.

Past performance does not guarantee future results. There is a potential for loss as well as gain in investing. Stash does not represent in any manner that the circumstances described herein will result in any particular outcome. While the data and analysis Stash uses from third party sources is believed to be reliable, Stash does not guarantee the accuracy of such information. Nothing in this article should be considered as a solicitation or offer, or recommendation, to buy or sell any particular security or investment product or to engage in any investment strategy. No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission. Stash does not provide personalized financial planning to investors, such as estate, tax, or retirement planning. Investment advisory services are only provided to investors who become Stash Clients pursuant to a written Advisory Agreement. For more information please visit