TGI - Why Boeing and Aerospace Suppliers Are Up Today
Shares of Boeing (NYSE: BA) jumped 9% at the open and were up more than 4% as of noon Tuesday, rallying on positive news both concerning the economy and the COVID-19 pandemic.
A number of commercial aerospace suppliers were in rally mode as well, with Triumph Group (NYSE: TGI) up 8% as of midday and Heico (NYSE: HEI) up more than 2% after opening up 5%. These companies all count on commercial airlines for revenue, and positive developments concerning the pandemic and the health of the economy are key to the airlines' recovery.
The markets are rallying on Tuesday after the Federal Reserve broadened its campaign to keep the economy afloat during the pandemic, announcing it would expand its stimulus program to include purchasing individual corporate bonds. That, in theory, should make it easier for companies to remain liquid and make sure corporate spending does not shrink.