Boeing holds onto gains from last week after winning fighter jet contract

• Boeing stock rises for fourth straight session.
• Markets cheer rumors that Trump will be more lenient with coming reciprocal tariffs.
• S&P Global Services PMI impresses to upside.
• Boeing's winning bid for US Air Force's new fighter jet contract impresses Melius Research.

 

Boeing (BA) stock looked bullish once again on Monday after shares of the aerospace company surged last Friday after the Trump administration chose its bid to build the newest generation of fighter jet for the US Air Force.

BA shares rose another 2% on Monday after the company received renewed interest from analysts.

Additionally, rumors arrived in the form of news stories that Trump may turn more lenient on his coming announcement for global tariffs. The general gist is that at the scheduled April 2 event when the administration is set to announce a flurry of reciprocal tariffs, something the administration is terming Liberation Day, certain countries will be excluded from the barrage. Also, sector-specific tariffs will not be announced yet as had been earlier suggested.

The preliminary S&P Global Composite PMI also boosted markets, coming in as it did above February’s reading. The positive reading, however, resulted mainly from the service sector, while manufacturing fell into a slight contraction.

The Dow Jones Industrial Average (DJIA), which included Boeing, lurched 1.3% higher in the session, while the NASDAQ advanced a pleasant 2.2%. 

Boeing stock news

Melius Research led the gain from Boeing on Monday after it raised its price target to $204 and switched its Hold rating to a Buy.

Melius analyst Scott Mikus said that Boeing’s winning bid for the Next Generation Air Dominance (NGAD) program with the US Air Force could bring in $20 billion in revenue over the next five years and another $40 billion over the long haul.

The fighter jet program is the sixth-generation project of its kind, and some administration officials have christened it the “F-47” in reference to Trump’s presidency. Because the Biden presidency interrupted Trump’s two terms, Trump is both the 45th and the 47th president of the United States.

Lockheed Martin (LMT) was Boeing’s main competitor for the NGAD program, and its share price drained by another 1.7% on Monday. Melius revised its share price down to $483 per share, noting that Europe’s interest in supplying its own militaries poses a threat to future revenue streams.

Mikus also mentioned the Boeing CFO’s statement at a conference last week that Boeing was accelerating its 737 program toward a government-mandated upper limit of producing 38 units of the popular model per month. Currently, Boeing is producing about 32 per month.  

 

Boeing stock chart

There is a lot to be excited for in Boeing's daily chart. First, Monday is the fourth straight day of gains for Boeing stock. Second, the 50-day Simple Moving Average (SMA) broke above the 200-day SMA for the first time since March 2024. It also seems likely to hold that technical structure as Boeing stock has moved quickly above both moving averages.

The $188 resistance level from late January and mid-February looms in Boeing stock's immediate future. A break above there would put the July 31, 2024 range high of $196.95 in play, something that didn't seem possible just a month ago.

However, besides the moving averages, recent support at $138 and $147 now seem quite far away.

Boeing daily stock chart