Share of Boeing Co.
BA,
dropped 2.2% to pace the Dow Jones Industrial Average’s
DJIA,
premarket losers, after the aerospace and defense giant reported disappointing second-quarter deliveries and announced further delays in delivering its 787 jets. The stock’s implied price loss would shave about 32 points off the Dow’s price, while Dow futures
YM00,
were recently down 62 points, or 0.2%. Boeing said earlier Tuesday that it delivered 79 aircraft in the second quarter, with analyst Robert Stallard at Vertical Research Partners saying that number was “way below” his forecast of 128. Stallard said Boeing’s announcement that 787 production rate will be “temporarily lower than five per month” is significant as that “ripples down through the supply chain — and the supply chain cannot just be turned on and off like a switch.” Boeing’s stock has already shed 5.9% over the past three months through Monday, while the Dow has gained 3.9%.
