CHICAGO (AP) — Boeing continues to grapple with an electrical problem affecting some 737 Max airliners, and the setback is hurting the aircraft maker's ability to deliver new planes.
The company said Tuesday that it delivered 17 planes in April, including just four Max jets. CEO David Calhoun had warned analysts that April deliveries would be “light” because of the Max problem.
The slow pace of deliveries hurts Boeing's cash generation because airlines and other customers typically pay a large chunk of a plane's purchase price upon delivery.
The Max, Boeing's best-selling plane, was grounded for 20 months after two crashes that killed 346 people. Deliveries of the jet resumed in November after Boeing updated a flight-control system, but now about 100 Max jets are idled because of an issue with electrical grounding of some parts. It has taken Boeing far longer than expected to come up with a fix.
Ed Pierson, a former Boeing production manager who has told Congress about problems on Boeing's assembly line, said the electrical issue should have been caught during the post-crash review of the Max. He criticized the Federal Aviation Administration for focusing its review on the flight-control system and not examining production problems.
Chicago-based Boeing said it received orders for 25 planes last month, but customers canceled 17 Max orders, resulting in net orders of eight planes.
Boeing shares fell 1.7% on Tuesday.
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7 Stocks to Watch When Student Debt Forgiveness Gets PassedNow that the Biden administration is fully in charge, student debt forgiveness has moved to the front burner. Consider these numbers. There is an estimated $1.7 trillion in student debt. The average student carries approximately $30,000 in student loans.
If $10,000 of student debt were to be canceled, there are estimates that one-third of borrowers (between 15 million to 16.3 million) would become debt-free. Of course, if the number hits $50,000 as some lawmakers are suggesting the impact would even greater.
Putting aside personal thoughts on the wisdom of pursuing this path, it has the potential to unleash a substantial stimulus into the economy.
And as an investor, it’s fair to ask where that money would go. After all, there’s no harm in having investors profit from this stimulus as well.
A counter-argument is that the absence of one monthly payment may not provide enough money to make an impact. However, Senator Elizabeth Warren referred to the effect student loans have in preventing many in the millennial and Gen-Z generations from pursuing big picture life goals such as buying a house, starting a business, or starting a family.
With that in mind, we’ve put together this special presentation that looks at 7 stocks that are likely to benefit if borrowers are set free from the burden of student loans.
View the "7 Stocks to Watch When Student Debt Forgiveness Gets Passed".
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