Boeing Stock Price: NYSE: BA price suffers double trouble regulators, Southwest Airlines

Boeing is paring some of its early gains and fails to reach last week´s highs.
The WSJ reports that regulators are proving 737 MAX production issues.
Southwest Airlines, canceled flights of MAX flights through October.
The general trend remains to the downside despite gradual reopening.

Yohay Elam FXStreet

The trouble continues to mount for Boeing, the battered aerospace company.

According to the Wall Street Journal, prosecutors and regulators are probing into 737 MAX production issues. Inspectors have reportedly found debris left in around half of the planes that have yet to be delivered. The scrutiny is both civil and criminal.

The second issue is related to the orders of the jet. Southwest Airlines, the erstwhile loyal customer, has canceled flights using 737 MAX planes through October. Moreover, Southwest CEO Gary Kelly said that the firm is revising its aircraft order book with Boeing.

The airline, based in Texas, released this statement in its earnings call, one day after the lone-star state announced it would be allowing its lockdown to lapse on April 30. The reopening of the US economy – alongside similar moves in Europe – is gradual and tourism will be probably at the end of the line.

Boeing has already suffered the cancelation of some 150 aircraft from the 737 MAX model. Assembly of aircraft recently resumed in the Puget Sound, yet demand remains weak.

Boeing Stock Forecast

BA shares have been advancing with the broader stock market, yet seem to ease after the news. Shares have dropped from the daily high of $133.88 to below $130 at the time of writing. The downside move seems persistent.

It still has some margin from the recent low of $126.44 but its failure to top the previous cycle peak of $141 is a bearish sign. The 52'week high is $391, to put things into proportion.

Author

Yohay Elam

FXStreet

Yohay is in Forex since 2008 when he founded Forex Crunch, a blog crafted in his free time that turned into a fully-fledged currency website later sold to Finixio.

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