Boeing shares fly high as Trump pays a visit
Boeing (BA) shares reached an all-time high, with the aerospace giant in the spotlight on Friday as President Trump visited one of the company’s plants.
The shares rose $1.90, or 1.1 percent, to close at $172.71.
Aerospace and defense industry stocks have risen since President Trump was elected, outpacing the rise in the S&P 500 index. Investors expect Congress, backed by the White House, to cut corporate taxes and boost defense spending, which would benefit companies in the sector.
Boeing shares are up nearly 11 percent on the year and have climbed roughly 18 percent since the Nov. 8 presidential election.
During President Trump’s visit on Friday to Boeing’s plant in North Charleston, South Carolina, he touted Boeing’s 787 Dreamliner as a sign of a manufacturing resurgence in the U.S.
“This is our mantra: Buy American and hire America,” Mr. Trump said. “We want products made in America, made by American hands.”
“Our goal as a nation must be to rely less on imports and more on products made here in the USA,” Trump added. “We’re going to fight for every last American job.”
With Boeing shares flying high, investors for now appear to be ignoring the risk of a turn toward protectionism under the Trump administration, which has vowed to get tough with China, Mexico and other U.S. trade partners. Roughly 13 percent of Boeing’s sales, amounting to $13 billion, come from China, according to Goldman Sachs.
Mr. Trump’s foreign policy could also complicate business for companies like Boeing. Some analysts express concern that his “America First” policy could affect multinationals’ global supply chains.
In December, for example, Boeing struck a deal worth $16.6 billion to sell planes to Iran’s flag carrier. The deal was made possible by an agreement last year negotiated by President Barack Obama and U.S. allies under which the Islamic Republic agreed to curb its uranium enrichment in exchange for relief from economic sanctions. Mr. Trump has blasted the deal.