Boeing is the IBD Stock Of The Day for Wednesday. Shares of the Dow Jones manufacturer are poised to break a downtrend as they shape a fresh base.
Ryanair CEO Michael O'Leary said that he expects Boeing to boost its monthly output of its model 737 aircraft to 42 per month from 38 per month by October, Reuters reported on Wednesday.
The Federal Aviation Administration has yet to lift the model 737 MAX production cap, put in place after the January 2024 midair emergency involving an Alaska Airlines flight. However, the FAA is reportedly planning to conduct scenario-based planning and exercises with Boeing before lifting the cap to ensure quality and safety.
Strike Negotiations Iced
Meanwhile, Boeing's defense unit on Tuesday halted negotiations with the machinist union that began striking on Aug. 4. Reuters reported that Boeing has no plans to restart discussions until "at least after Labor Day."
Talks with the International Association of Machinists had resumed on Monday for the first time since the start of the strike. The union, representing 3,200 workers at Boeing Defense's St. Louis-area facilities, rejected a four-year contract offer in early August, following negotiations stretching back to late July. Boeing said that almost 30% of the union members did not vote on that offer.
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$36 Billion Deal With Korean Air
Elsewhere, Boeing on Monday announced that Korean Air intends to purchase 103 of Boeing's planes to modernize its fleet and support growth as the airline fully integrates operations with Asiana Airlines over the next several years. The deal, when finalized, will mark Korean Air's first order for the 777-8F and support around 135,000 jobs across the U.S., according to Boeing.
The order includes 20 777-9s, 25 787-10s, 50 737-10s and eight 777-8 freighters, Boeing said.
Boeing did not disclose financial figures for the transaction, but Reuters put the deal at about $36 billion.
Korean Air currently operates 108 Boeing airplanes, including 737s, 747s, 777s and 787s. The airline has 72 Boeing jets on order, which will grow to 175 once Monday's deal is finalized.
The announcement followed reports from Bloomberg last week that Boeing was close to a deal with China for up to 500 commercial jets for the country's airlines. The two sides are still finalizing specifics, including the types and volumes of jet models, as well as timetables for delivery, according to unnamed sources. The sale would mark the largest order for Boeing from China since President Donald Trump's last visit to the country in 2017.
The transaction is similar in scope to an order that China struck with Airbus earlier this year, but has yet to be announced, Bloomberg reported.
Boeing Stock
Boeing ticked down less than 1% Wednesday.
On Tuesday, BA stock swung 3.5% higher, enough to rupture a downward trendline and offer an aggressive early entry around 233. Boeing stock is also forming a flat base, with a potential buy point at 242.69. Shares are sticking close to their 21-day exponential moving average as the stock consolidates.
Boeing stock has jumped more than 32% so far this year, making it the second-best performer in the Dow Jones Industrial Average. Only Nvidia has outperformed Boeing in the Dow in 2025, with a nearly 36% gain.
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