HomeMarket NewsBoeing Shares At Risk: Strike Disruptions and Possible Credit Downgrade Ahead

Boeing Shares At Risk: Strike Disruptions and Possible Credit Downgrade Ahead

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Boeing’s Strike: A Crisis for the CompanyBA has suspended talks with the International Association of Machinists and Aerospace Workers (IAM), removing its latest proposal following a month-long strike that began in September.

The strike has completely halted operations at Boeing’s facilities in Washington, impacting over 33,000 workers who are seeking fairer wages and improved benefits.

Initially, Boeing proposed a 30% wage increase and enhanced retirement plans. However, the union’s demands, labeled as “non-negotiable,” led to the failure of discussions, even after attempts at mediation.

Boeing’s Chief Operating Officer, Stephanie Pope, stated that the company is contemplating raising $10 billion through new stock sales to manage financial losses.

As S&P Global and Moody’s assess Boeing’s credit rating, the risk of a downgrade to junk status looms, adding further complications to its financial situation.

Read Also: Boeing Sees No Sense in Further Talks as Workers Strike Hits Credit Rating

Financial Woes Extend Beyond Labor Issues

Boeing, based in Arlington, Virginia, is facing severe stock value declines, with shares plummeting 38.57% this year and a total of 17.95% decrease in just the last few months.

Screenshot 2024 10 09 at 4.36.13 PM

Chart created using Benzinga Pro

The current technical analysis indicates a troubling trend: Boeing’s share price of $154.65 is significantly below its 20-day and 50-day simple moving averages, showing strong bearish momentum.

Screenshot 2024 10 09 at 4.36.25 PM

Chart created using Benzinga Pro

The Moving Average Convergence Divergence (MACD) indicator is at negative 3.13, reinforcing the bearish trend, while the stock’s Relative Strength Index (RSI) stands at 44.48, indicating a neutral position.

Boeing’s stock has consistently remained within the lower bearish range of the Bollinger Bands, signaling ongoing struggles.

In contrast, the company’s eight-day simple moving average (SMA) is at $153.94, providing a fleeting sign of short-term growth. However, with the 200-day SMA at $186.15, the long-term prospects appear bleak.

Threat of Credit Downgrade Continues

Boeing’s challenges don’t seem likely to resolve soon.

The broken negotiations with union workers, paired with the looming threat of a credit downgrade, suggests a precarious situation ahead.

Investors should prepare for turbulence as the stock battles against bearish trends across various technical indicators.

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