Boeing stock extended a rally Tuesday after China agreed to resume accepting commercial jets from the U.S. after both nations agreed to temporarily slash tariffs.
Chinese officials told the country's airlines they can again take delivery on preexisting Boeing orders, The Wall Street Journal reported. The Beijing government last month ordered airlines to gain additional authorization for Boeing deliveries and to not place any new orders with the U.S. plane maker.
A few new planes were flown back to the U.S. as Chinese airlines also balked at tariffs of more than 100%. Boeing CEO Kelly Ortberg even said the company would stop making jets for China if buyers won't accept them. China is one of its largest markets.
Although Boeing stock took a hit after news of the China halt came out April 15, shares began to rebound a week later.
Boeing always had a massive backlog to cushion the blow from China, even though it cost the Dow giant some cash flow. The company's order book shows nearly 6,300 unfilled orders as of April 30.
Lately, the company's fortunes have been turning for the better.
Boeing Stock Rises After Earnings
First-quarter earnings announced April 23 were better than expected, and the company got more than $10 billion from the sale of its navigation business. A trade deal between the U.S. and the U.K. announced last week also benefited Boeing.
The end of the delivery ban came days after U.S. and China negotiators agreed to slash tariffs for at least 90 days as they work toward a lasting trade deal.
There was no official comment from Boeing executives Tuesday. But investors took the stock to the highest price since March 2024. Shares of the aerospace company rose 2.8% Tuesday afternoon to 204.04 and are up more than 15% this month.
Boeing stock broke out of a double-bottom base with a 184.40 buy point on May 2 and its' now extended past the 5% buy zone. Shares bottomed on April 7, shortly before President Donald Trump announced a 90-day pause on most tariffs except for a 10% base rate.
Although the stock is acting as a leader, it's not the highest-rated member of its industry group. Its Composite Rating is 77 as the company tries to recover from EPS and sales declines in Q2, Q3 and Q4 of last year.
Boeing stock has a 21-day average true range (ATR) of 3.22%. The average true range is a metric available on IBD's MarketSurge that gauges the characteristic breadth of a stock's behavior. Stocks that tend to make large jumps or dives in daily action, the kind that can trigger sell rules and shake investors out of a stock, have a high ATR. Stocks that tend to make more incremental moves have lower ATRs. There are exceptions, but given current market conditions, IBD generally suggests investors keep most of their portfolio focused on stocks with ATRs at or below 6%.
