Boeing’s Shares Rise in Pre-market as CEO Muilenburg Resigns
Shares of Boeing have risen 1.5% after pre-market trading resumed, following the major leadership changes at the top management of the embattled company. Trading in shares of Boeing on the NYSE was suspended after it was announced that Dennis A. Muilenburg had resigned from his position as President and Chief Executive Officer (CEO) of the company. He has been replaced by David Calhoun, who up till his appointment served as Boeing’s Chairman. The board now has a new Chairman in Lawrence W. Kellner.
Boeing: Tale of a Troubled Year Following the 737 Max
In a statement announcing the changes, the company’s board said it decided on the leadership change to “restore confidence in the company moving forward”.
Boeing has had a difficult year after two high-profile crashes involving its 737 MAX aircraft, which has since been grounded. Last week, it was reported that the company had suspended further production of the aircraft after regulators decided that a December date for resuming flights was not practicable. The company has had to pay out billions of dollars in compensation and at least three airlines are also demanding compensation for lost revenue from their grounded Boeing 737 MAX planes.
Outlook for Boeing Stocks
Boeing is now trading at 339.65 as at the time of writing. This is up from Friday’s closing price of 327.98. The stock is flirting with a critical resistance level of 337.80 (previous lows of May 13, July 31, Oct 24 and Dec 11). A break above this level takes the stock towards 346.98 (Jan 14 and Nov 11 lows). Above this level, 366.98 could come into the picture.
On the flip side, a failed break of the current resistance opens the door for more downside towards 328.91 and 318.16, in that order.