(8:08 ET) The overnight range is 1081-1091. You can check my post from Sunday night for an abbreviated list of earnings out this morning or goto briefing.com for a full list (my list from Sunday night is posted below). There is a direct link to briefing.com on the old blogspot site. I’ll be moving those links over soon.
Earnings are generally weak this morning. ATI looks to already be down over 8% in the pre-market. I’m assuming this is related to BA announcing losses due to delays in the 787 and 747-8 programs. ATI is a supplier for BA.
I almost never discuss fundamentals on here, but I do have some experience following BA and reading about the airline industry in general. It is always tough to find conservative long term picks for a retirement account and BA could be a good addition if this sells off for a few days. Throughout their history of making commercial airplanes, the delivery schedule is always late and there are always delays. I remember a few years back when all the pundits were excited about their order book that I thought “just wait until the plane is not delivered on time.” It was one of the few stocks I bought on a fundamental basis. I think I bought it at $50 and sold in the $70s. I was really disappointed of course when it ran to $100 but in the end I was right. The delays started coming and the stock started tanking.
I wouldn’t buy BA without looking at the technicals (which show a potential double top forming), but it is one of the last great American companies. Its only real competition is Airbus although there are some smaller competitors such as ERJ which could be players way down the road (as well as China). Once they get all the bugs figured out, the 787s and 747-8s will be highly successful. Especially in America, there are many aging planes that simply need to be replaced.
For those that are interested in BA, commercial aviation and inspirational people, it might be worth checking out the biography of Joe Sutter titled “747”. He was the chief engineer on the original 747 in the 60s and 70s. For anyone that read his book, they would have known years ago that the 787 was never going to be delivered on time.
Finally, a little house keeping related to the move. For those that subscribe with RSS, I think some of you will need to re-subscribe. If you reader was pointed to feedburner, you should be fine. However, if your reader was pointed to the blogger feed (which was redirected to feedburner), you will need to re-subscribe.
UPDATE: I forgot to mention that Crude Inventories come out at 10:30. Keep that in mind when making early trades.
Tags: BA
