TDG - Why Shares of Boeing and Its Suppliers Are Falling Today
Shares of Boeing (NYSE: BA) and some of its key suppliers reversed course on Friday after a solid week of gains, with some investors apparently taking profits following a multiday rally after lawmakers agreed to provide financial support for the sector and its most important customers.
Boeing shares were down 11% at 11:15 a.m. EDT on Friday, while shares of Spirit AeroSystems Holdings (NYSE: SPR) were down 17%, TransDigm Group (NYSE: TDG) shares were down 10%, and the stock of Heico (NYSE: HEI) was down more than 6%.
Airlines are among the businesses hit hardest by the COVID-19 pandemic, with travel demand drying up as the virus has spread. Carriers have responded by cutting flights and grounding jets, putting pressure not only on Boeing but also on suppliers, as demand for new planes and spare parts to service the existing fleet is expected to wane.