Today’s traders are feeling optimistic about Boeing (NYSE:BA) as the company has not just one, but two positive news items. First, for now at least, Boeing managed to avert a major workers’ strike. Plus, BA stock is heading higher, as the company is set to resume delivering 787 Dreamliner airplane models very soon.
Today’s relief rally comes in the wake of ongoing tension between Boeing and some of the company’s workers. It looked like a strike could have commenced any day now. However, after an overnight bargaining session, Boeing reportedly made a new contract offer to the International Association of Machinists and Aerospace Workers.
Thus, a strike appears to have been avoided for the time being. This isn’t finalized, though, as workers at the three Boeing plants will vote on Wednesday on the modified contract proposal.
This wasn’t the only recent breakthrough for Boeing. There’s also fresh news concerning Boeing’s 787 Dreamliner model. The company hasn’t been able to deliver these airplanes for a while due to regulatory scrutiny over production defects.
Good News for BA Stock Holders
It’s important for Boeing to get regulatory clearance for these airplanes, as the company had around 120 undelivered Dreamliners at the end of June, which could be worth over $25 billion collectively.
However, the Federal Aviation Administration (FAA) recently approved Boeing’s plan for fixing the Dreamliners’ problems. So, according to a source cited by The Wall Street Journal, the first 787 Dreamliner delivery is expected to occur “within days.”
Therefore, it’s not difficult to see why today’s traders are optimistic about Boeing. On the other hand, Boeing still needs to submit paperwork to the FAA for the first planned Dreamliner delivery.
Furthermore, the FAA will still need to clear each 787 Dreamliner delivery. Nevertheless, with BA stock up 6% by 10:30 a.m. Eastern, Wall Street is evidently seeing the glass as half-full for Boeing today.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.