TGI - Why Shares of Boeing and Its Suppliers Are Rallying Today
In its effort to negotiate its 737 Max order book and avoid cancellations, Boeing (NYSE: BA) has scored a pair of wins in recent days. Those, along with positive sentiment concerning the health of its airline customers, are giving a lift to the entire commercial supply chain on Wednesday.
Shares of Boeing were up 12% as of 2:30 p.m. EDT, while shares of Spirit AeroSystems (NYSE: SPR) climbed 18%, Allegheny Technologies (NYSE: ATI) and Triumph Group (NYSE: TGI) were each up 11%, and shares of TransDigm Group (NYSE: TDG) gained 10%.
Boeing and its supply chain were under pressure well before the pandemic hit. The March 2019 grounding of Boeing's 737 Max after a pair of fatal accidents had created a backlog of built, but undeliverable, jets, causing Boeing to slow and eventually suspend production of the once hot-selling jet.