Boeing Rewrites Its Own Record — Thursday’s IP Market Recap

by Kyle Woodley | November 17, 2011 4:44 pm

[1]Boeing (NYSE:BA[2]) wasn’t content to just reach cloud nine this week — it made sure cruise control was engaged.

Just days after announcing a company-best $18 billion deal[3] with Emirates for 50 of its 777-300 jets, Boeing scribbled over the newest entry in the record book with a $21.7 billion order from Indonesian airline Lion Air — a deal so big, it warrants presidential attention.

On Friday, President Barack Obama — who is in the country for an East Asia summit — will attend a signing ceremony for the order, which will task Boeing with producing 230 of its smaller 737 jets. According to the White House, the deal will support more than 110,000 domestic jobs, split between both Boeing (which employs more than 160,000) and the company’s suppliers.

Unlike the previous deal, which was announced Sunday and gave BA stock a 1%-plus bump, Thursday’s deal was met with relative indifference, with Boeing down about 1%. Still, BA stock has made a persistent — albeit rocky day-to-day — 10% rise in the past three months and is trading just slightly higher year-to-date after falling into the red on the year in August.

But while Boeing was popping the champagne, J.M. Smucker (NYSE:SJM[4]) was moping over sour jelly profits and rotten peanuts.

Shares of J.M. Smucker — which makes Jif peanut butter and Crisco products, among others — dropped almost 2% to $71.85 after a disappointing earnings report hammered by food inflation costs[5]. The company reported second-quarter revenues of $1.5 billion, which was up 18% from last year and slightly topped Wall Street estimates of $1.49 billion.

However, its profit plunged 15% from $149.7 million, or $1.25 per share, in 2010 to $127.2 million ($1.12 per share) — falling far short of analysts’ estimates of $1.39. The company suffered from rapidly rising food costs, reflected especially heavily in its coffee unit, as well M&A costs.

Making matters worse, the Associated Press reported SJM also had to recall 3,000 jars of its Smucker’s Natural Peanut Butter Chunky product on salmonella concerns[6]. No illnesses had been reported as of Thursday.

Three Up

• The Children’s Place (NASDAQ:PLCE[7]): Up 15.13% ($6.81) to $51.81.
• Dendreon (NASDAQ:DNDN[8]): Up 7.99% (60 cents) to $8.11.
• LinkedIn (NYSE:LNKD[9]): Up 4.7% ($3.36) to $74.92.

Three Down

• Youku.com (NASDAQ:YOKU[10]): Down 16.11% ($3.31) to $17.24.
• OfficeMax (NYSE:OMX[11]): Down 12.43% (66 cents) to $4.65.
• NetApp (NASDAQ:NTAP[12]): Down 12.3% ($5.01) to $35.73.

As of this writing, Kyle Woodley did not own a position in any of the aforementioned stocks. Check out our list of previous IP Market Recaps[13].

Source URL: https://investorplace.com/2011/11/boeing-deal-indonesia-lion-air-obama-market-summary/

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