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the Dow Jones Industrial Average (DJ INDICES: ^ DJI) was up 0.42% as of 1:25 p.m. EST Thursday despite a worsening economic situation. The number of Americans filing first-time unemployment benefits reached 885,000 on a seasonally adjusted basis for the week ended December 12, up 23,000 from the previous week and higher than economists polled by Reuters had planned.
With regard to individual actions: Boeing (NYSE: BA) the stock was down as the company allegedly took unusual steps to ensure the success of the 737 MAX; Nike (NYSE: DE) the stock rose after an analyst called it one of the best ideas for 2021; and International Business Machines (NYSE: IBM) stock posted a slight gain after CEO Arvind Krishna was elected to head the board.
Image source: Getty Images.
Boeing hires pilots to help return 737 MAX
Boeing’s 737 MAX is set to return to the skies after the United States Federal Aviation Administration recently lifted the order that had ground the plane for nearly two years. In a bid to avoid any problems, Boeing would spend $ 32 million to hire 160 pilots to integrate into the airlines.
According to Reuters sources, these “global engagement pilots” will have 35-day assignments as instructors or cockpit observers. In addition to hiring pilots, Boeing will monitor all 737 MAX flights and resolve issues as they arise, and provide talking points to flight attendants regarding the safety of the aircraft.
The successful return of the 737 MAX is essential for Boeing. The company expects the market for narrow-body aircraft like the MAX to stimulate the post-pandemic recovery, as the planes are used for domestic and short-haul flights. Over the next 20 years, Boeing expects the majority of new aircraft deliveries to be single-aisle aircraft.
Boeing shares were down about 1.4% early Thursday afternoon. The stock remains down about 31% since the start of the year.
Analyst names Nike among top ideas for 2021
Ahead of Nike’s earnings report on Friday, Guggenheim named the footwear and apparel giant as one of its best ideas for 2021. The driver of confidence is Nike’s ongoing shift to the consumer.
Guggenheim sees Nike as a digitally driven company and believes this change will lead to improved financial performance for the company in the future. During Nike’s first fiscal quarter, the company reported an 82% increase in digital sales and a 12% increase in direct-to-consumer sales. Weakness in Nike’s own stores partially offset strong growth in digital sales.
Nike shares rose 1.4% on positive commentary from analysts. The stock is currently trading near its all-time high, and it is up about 38% this year.
IBM CEO appointed chairman of the board
As previously announced, IBM CEO Arvind Krishna will succeed former CEO Virginia Rometty as chairman of the board of the century-old tech giant on January 1. Krishna took over from Rometty as CEO in April; Rometty will retire from the company on December 31.
IBM’s current strategy, which focuses on hybrid cloud computing, artificial intelligence and other areas of growth, was put in place during Rometty’s tenure. This transformation is not complete, and it will be up to Krishna to carry it out.
IBM’s $ 34 billion acquisition of software company Red Hat, made before Krishna took the lead, was IBM’s big bet on hybrid cloud computing. The planned spin-off of its $ 19 billion managed infrastructure services business, announced earlier this year, will further focus IBM’s resources on its best growth opportunities.
IBM shares rose about 0.3% in early Thursday afternoon, underperforming the overall market. IBM stock has done badly this year, down about 6%.
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