SPR - Why Shares of Boeing and Its Suppliers Are Up Today
Shares of Boeing (NYSE: BA) and some of the company's beaten-down suppliers got a boost Thursday on an overall positive day for market sentiment. Fresh earnings reports have given investors reason to believe airline customers will be able to weather the COVID-19 pandemic and have reassured skeptics about the health of the supply chain.
Boeing was up 6.2% as of Thursday afternoon, while shares of Triumph Group (NYSE: TGI) were up 15% and Spirit AeroSystems (NYSE: SPR) shares were up 8%.
Boeing has been under pressure for months now due to the perceived vulnerability of its massive 4,000-plane-strong order book. The pandemic has wiped out demand for air travel, causing airlines to shift focus from growth to survival. That means cutting or deferring orders for new planes, and with much of the global fleet grounded, less demand for spare parts as well.