Latest news with #737Max9
CNBC
4 days ago
- Business
- CNBC
Where we stand on Bullpen stock Boeing after its incredible 7-week run higher
Every weekday, the CNBC Investing Club with Jim Cramer releases the Homestretch — an actionable afternoon update, just in time for the last hour of trading on Wall Street. Markets: Stocks were mixed to start the week . The market on the first trading day in June stumbled around the open and traded lower in the absence of any real progress on trade talks between the U.S. and China, with both countries now accusing the other of violating their Geneva trade agreement announced on May 12. Industrials and other cyclicals also felt some pain in response to President Donald Trump doubling tariffs on steel imports to 50%. Underwhelming economic data, including construction spending and ISM manufacturing, also sparked some weakness. However, the market started to cut its losses shortly before 11 a.m. ET after a senior White House official told CNBC's Eamon Javers that Trump and Chinese President Xi Jinping were likely to speak later this week. This is the same storyline that helped the market recover Friday afternoon from a sell-off earlier in the session. A few key companies, including Club names Broadcom and CrowdStrike , are set to report quarterly results later this week. But overall, we're in a quiet stretch for earnings. As a result, the market will likely be driven more by economic data and trade-related headlines. That's not necessarily a bad thing, but it helps explain why the market is so fixated on every new development out of Washington. Update: Bullpen name Boeing was on the move Monday after analysts at Bank of America upgraded the stock to a buy rating, with a new high price target of $260 per share. That represents more than 25% upside to Friday's close. Shares rose over 2% on Monday. Boeing has had quite a run over the past seven weeks. We added shares of the jet maker to our Bullpen watch list on April 10, because we believed the company would be the No. 1 beneficiary of trade deals with other countries. This thesis quickly proved true. Shortly after the U.S. and the UK announced their trade deal in early May, British Airways' parent company, International Consolidated Airlines Group , IAG for short, announced an order of 32 Boeing Dreamliners in a deal valued at around $10 billion. Boeing later received a ton of orders during Trump's tour of the Mideast, including a record-breaking order of up to 210 aircraft from Qatar Airways. Boeing also got orders from airlines based in Saudi Arabia and the United Arab Emirates. BA YTD mountain Boeing YTD The trade war de-escalation, especially with China, has helped the stock, too. Boeing shares were trading around $210 per share on Monday, a level not seen since January 2024. At that time, the company was dealing with the immediate fallout from an incident in which a door plug on a 737 Max 9 blew out. It's easy to have regrets for not pulling the trigger on Boeing when we added it to the bullpen. Our thesis has played out just like we thought, and we would be enjoying this big move if we did. However, that doesn't mean the story is over, which is why we aren't removing it from the Bullpen. We continue to like the turnaround story here and the improvements to operations that CEO Kelly Ortberg has put in place. The trade deal angle is the cherry on top. We'll watch Boeing in the weeks and months ahead and look out for pullbacks in the stock because it could be one to buy in the event tariffs and trade wars re-escalate, causing the market to sell-off. Up next: There are no major earnings reports after Monday's closing bell. Dollar General , Signet Jewelers , and Chinese smart EV maker Nio are scheduled to report earnings before Tuesday's open. On Tuesday's economic calendar, it's data factory orders and durable goods orders data. The government also releases its Job Openings and Labor Turnover Survey, commonly referred to as JOLTS. It's the first of three reports on the job market , leading up to the Labor Department's monthly employment report. (See here for a full list of the stocks in Jim Cramer's Charitable Trust.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
United News of India
24-05-2025
- Business
- United News of India
Boeing strikes $1.1 bn deal with US DOJ to avoid prosecution over deadly 737 Max crashes
Arlington, May 24 (UNI) Boeing has reached a non-prosecution agreement with the US Department of Justice (DOJ), allowing the aerospace company to avoid criminal charges linked to two fatal 737 Max crashes in 2018 and 2019 that killed 346 people. As part of the deal, Boeing will pay over $1.1 billion (£867 million), which includes a $487.2 million criminal fine and $444.5 million for a new compensation fund for victims' families. The company will also commit hundreds of millions of dollars to improve its compliance, safety, and quality control systems. The DOJ described the agreement as "a fair and just resolution that serves the public interest," stating it ensures "further accountability and substantial benefits from Boeing immediately, while avoiding the uncertainty and litigation risk presented by proceeding to trial," according to Euro News. Boeing has admitted to conspiring to obstruct an FAA investigation by concealing crucial details about a software system known as MCAS, which was involved in both crashes. The system could automatically push the aircraft's nose down if it received faulty data, contributing to the tragedies in Indonesia and Ethiopia. 'This kind of non-prosecution deal is unprecedented and obviously wrong for the deadliest corporate crime in US history,' said Paul Cassell, a lawyer representing some of the victims' families. He added that his clients plan to challenge the agreement in court. Under the deal, Boeing avoids a criminal conviction, preserving its eligibility for US government contracts. The company's board must also meet with victims' families to hear their concerns. The agreement follows a previous 2021 deferred prosecution deal, under which Boeing paid $2.5 billion, including a $243.6 million criminal penalty and $500 million for victims' families. That deal was nearly up when a door panel detached from a new 737 Max 9 in January 2024, prompting prosecutors to accuse Boeing of breaching its commitments. Senators Elizabeth Warren and Richard Blumenthal have also criticised the new deal, urging the DOJ not to "allow the company to weasel its way out of accountability for its failed corporate culture." The settlement awaits approval by a federal judge. UNI ANV RN
Hans India
24-05-2025
- Business
- Hans India
Boeing, US DOJ reach deal over 737 Max crashes to avoid prosecution
Washington: The US Department of Justice (DOJ) announced that it has reached a non-prosecution agreement with Boeing stemming from the two fatal crashes of its 737 Max aircraft, which together claimed 346 lives. In its filing in the federal court in Texas, the DOJ on Friday described the agreement as "a fair and just resolution that serves the public interest," emphasising that it ensures immediate accountability and substantial benefits for affected families while sidestepping the uncertainties and risks of litigation. Under the deal, Boeing will avoid a felony conviction and the scheduled trial next month, reports Xinhua news agency. Boeing will have to "pay or invest" more than 1.1 billion US dollars, according to the filing. It includes a 487.2-million-dollar criminal fine. A 243.6-million-dollar fine it already paid in an earlier agreement would be credited. It also includes 444.5 million dollars for a new fund for crash victims, and 445 million dollars more on compliance, safety and quality programs. After the fatal crashes, Boeing was accused of conspiring to defraud regulators by withholding critical information about the 737 Max's flight-control system, which was implicated in both crashes. In 2021, the company entered a deferred prosecution agreement to avoid prosecution, paying a total of 2.51 billion dollars -- including a 243.6-million-dollar criminal penalty, 500 million dollars for victims' families, and 1.77 billion dollars in compensation to airline customers. "Boeing's employees chose the path of profit over candour by concealing material information from the FAA concerning the operation of its 737 Max aeroplane and engaging in an effort to cover up their deception," then-acting Assistant Attorney General David Burns of the DOJ's Criminal Division said after the 2021 deferred prosecution agreement. That 2021 settlement was set to expire two days after a door panel blew out of a nearly new 737 Max 9 operated by Alaska Airlines on Jan. 5, 2024, after the aircraft left Boeing's factory without key bolts installed. Following the incident, prosecutors alleged Boeing had breached its 2021 settlement by failing to implement an effective compliance and ethics program. In July 2024, Boeing agreed to plead guilty to a criminal fraud charge in a revised settlement carrying a potential 487.2-million-dollar fine. Lawyers for victims' family members railed against the preliminary plea deal, equating it to a slap on the wrist for the corporate giant. A federal judge ultimately rejected that plea deal over concerns about diversity, equity, and inclusion criteria for selecting the corporate monitor. Families of the crash victims have criticised past agreements as overly lenient, demanding greater accountability and calling for Boeing's executives to face trial.
Yahoo
24-05-2025
- Business
- Yahoo
U.S. Makes Final Legal Decision on Boeing
On Friday, May 23, the United States Justice Department announced it reached a deal with Boeing for allegedly misleading U.S. regulators about its 737 Max airplane before two crashes five months apart that killed 346 people. Under the non-prosecution agreement, Boeing will have to 'pay or invest' more than $1.1 billion, the DOJ said in its filing in federal court in Texas on Friday, including a $487.2 million criminal fine, though $243.6 million it already paid in an earlier agreement would be credited. It also includes $444.5 million for a new fund for crash victims, and $445 million more on compliance, safety and quality programs, according to CNBC. 'Ultimately, in applying the facts, the law, and Department policy, we are confident that this resolution is the most just outcome with practical benefits,' a Justice Department spokesperson said in a statement, via the Associated Press. 'Nothing will diminish the victims' losses, but this resolution holds Boeing financially accountable, provides finality and compensation for the families and makes an impact for the safety of future air travelers.' The airplane manufacturing giant was accused of misleading the Federal Aviation Administration regarding its new software system called MCAS that could turn the plane's nose down without inputs from pilots. In the two accidents that killed 346 people, a faulty reading from a sensor pushed the nose of the plane down and pilots were not able to regain control of the aircraft. Following the second crash, Max aircraft were grounded worldwide until Boeing redesigned MCAS. In 2024, prosecutors said Boeing violated the terms of the 2021 agreement by failing to make promised changes to detect and prevent violations of federal anti-fraud laws. That decision came after a door panel blew off of a nearly new 737 Max 9 operated by Alaska Airlines on Jan. 5, 2024, after the aircraft left Boeing's factory without key bolts installed.U.S. Makes Final Legal Decision on Boeing first appeared on Men's Journal on May 23, 2025
Yahoo
23-05-2025
- Business
- Yahoo
Boeing to avoid prosecution in US Justice Department deal over crashes
Boeing is set to enter into a non-prosecution agreement in the fatal crashes of two 737 Max aircraft that killed hundreds, the US Department of Justice said. As part of the deal, Boeing will avoid an upcoming fraud trial that could have resulted in the US aviation giant and defence contractor being labelled a felon. The deal includes the company admitting to obstructing federal aviation officials and paying $1.1 billion in fines. The two crashes, in 2018 and 2019, left 346 people dead. The government said it had conferred with families of crash victims, and said many either supported or did not oppose the deal. Some families, however, have expressed outrage at the prospect of such a deal. Boeing did not immediately return the BBC's request for comment. The US Department of Justice would not comment. In a court filing on Friday, the Justice Department said Boeing would admit to "conspiracy to obstruct and impede" an investigation by the US Federal Aviation Administration (FAA) and to pay more than $1.1 billion in fines. Boeing will also have to continue making improvements to its anti-fraud compliants and ethics program. Boeing's 737 Max models were grounded globally for almost two years after the 2019 crash of a Ethiopian Airlines flight outside of Addis Ababa. All 157 people on-board were killed. Five months before that, a 737 Max operated by Lion Air crashed into the Java Sea shortly after take-off from Jakarta, Indonesia. 189 people aboard were killed. Both crashes were linked to faulty flight control systems. The crashes led to fraud charges against a former top Boeing pilot who was acquitted in 2022. In 2021, in the closing days of the first Trump presidency, Boeing reached a settlement with prosecutors that protected it from prosecution for three years. Federal prosecutors said Boeing violated that deal by failing to create and follow a compliance and ethics program aimed at detecting violations of US laws. A door panel flew off a 737 Max 9 operated by Alaska Airlines two days before the agreement had been set to expire. Last year, Boeing agreed to plead guilty to criminal fraud in a settlement that was rejected by a federal judge.
