Market Overview

PreMarket Prep Stock Of The Day: Boeing

PreMarket Prep Stock Of The Day: Boeing

If there is one issue that's the poster child for the market over the last year, it has to be Boeing Co (NYSE: BA), the PreMarket Prep Stock of the Day.

Boeing Flying High 1 Year Ago: Ethiopian Airlines Flight 302, a Boeing 737 Max aircraft, crashed 6 minutes after takeoff March 10, 2019, killing all 157 people aboard.

The crash sent Boeing shares on a retreat from an all-time high. 

After peaking at $446.01 earlier in the month, it entered a period of extended volatility while the cause for the crash was being investigated. For the most part, Boeing was in a trading range from $320 to $390 for the remainder of the year.

Then Came COVID-19: Although Boeing breached the bottom of the trading range in January, it battled back, trading as high as $349.95 on Feb. 12.

When the stock made a daily high Feb. 20 at $320.64 and swooned to end the session at $303.14, the rout was on.

Over the next 16 sessions, Boeing fell all the way to $89 March 18, rallying to end the session at $101.89.

That low coincided with Boeing's May 2013 of $90.73.

June Rally Aborted: Boeing rebounded with the market, but became decoupled in early June.

At the height of the “back to normal” mania, Boeing rallied to $234.40 and reversed course.

While the indexes soared to new all-time highs, Boeing was at the whim of the ebb and flow of coronavirus news. 

With the overhang of 737 Max situation along with a sharp decline in airline travel, production and sales of new planes has ground to a halt — not to mention the number of canceled plane orders the company was experiencing.

Barclays Boosts To 'Back To Normal' Thesis: Throughout the COVID-19 crisis, entertainment and leisure stocks have tended to move in unison.

On a day with positive vaccine news, these issues rally. When there is a surge in reported cases here or abroad, they tend to retreat.

Before the open, Barclays upgraded Carnival Cruise Lines (NYSE: CCL) from Equal Weight to Overweight.

The favorable ratings change has had a ripple effect on the other cruise lines and a few of the airlines as well.

After all, if people are going to go on cruises, many will have to fly to get their departure destination. The more people that fly may in turn create a need for more planes.

Liftoff For Boeing: On Thursday, Boeing reached its lowest level since peaking in June, trading down to $145.02 and rallying to end the session at $146.05.

That low just happened to coincide with its June 1 low ($144.55), which put in place the foundation for a jaunt to $234.20.

After a higher open Friday, Boeing had a brief retreat before finding support just above Thursday’s closing price of $146.05 at $146.42 

It has already surpassed Thursday’s high ($150.31) and continues to make new highs for the day. The stock was trading 3.99% higher at $151.88 at last check Friday. 

If the rally continues over the next few days, there is no identifiable resistance on the daily charts until the pair of highs at the $160 area (Tuesday at $160.07 and Wednesday at $160.42).

Related Links:

How Large Option Traders Are Playing Boeing As Order Backlog Shrinks Further

Second COVID-19 Wave Would Be Devastating For Airlines, Says Former Spirit CEO


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