WASHINGTON, Feb 23 (Reuters) - New orders for U.S. factory goods fell in December amid a sharp decline in commercial aircraft bookings, but demand elsewhere was strong, partly driven by robust investment in artificial intelligence.Factory orders dropped 0.7% after an unrevised 2.7% increase in November, the Commerce Department's Census Bureau said on Monday. Sign up here.Economists polled by Reuters had forecast factory orders would slip 0.6%. Orders advanced 3.7% on a year-on-year basis in December. The r ...

President Donald Trump and Indonesian President Prabowo Subianto finalized a trade agreement Thursday, ending months of uncertainty with an accord that’s expected to lower US tariffs and see Jakarta facilitate the purchase of an estimated $33 billion in American goods.The leaders “confirmed their strong commitment to implementing” the deal and instructed their teams to “take further steps for a NEW GOLDEN AGE of the ever-growing U.S.-Indonesian Alliance” as they met on the sidelines of the Board of Peace’s ...

Market Overview - European stocks are expected to open in mixed territory with the U.K.'s FTSE index projected to rise by 0.15%, while Germany's DAX is expected to decline by 0.25%, France's CAC 40 by 0.15%, and Italy's FTSE MIB slightly below the flatline [1] - Global market sentiment is being influenced by U.S. stock futures trading near the flatline after a positive session, driven by gains in technology stocks and strength in financials and energy sectors [3] Earnings Reports - A busy day of earnings is anticipated with companies such as Nestle, Rio Tinto, and Zurich Insurance reporting their results [2] - Airbus expects to deliver 870 commercial aircraft in 2026, which is slightly below the analysts' expectation of approximately 880 [2] Oil Market - Oil prices increased by over 4% following comments from U.S. Vice President JD Vance regarding Iran's nuclear talks, indicating potential military action if diplomatic efforts fail [4] Regional Market Activity - In Asia-Pacific markets, stocks traded higher as several exchanges returned from the Lunar New Year holiday [4]

Core Viewpoint - The Boeing Company (NYSE:BA) has shown significant stock performance, with a 35% increase over the past year and a 7.4% rise year-to-date, indicating positive market sentiment and potential growth in the aerospace sector [2]. Group 1: Stock Performance - Boeing's shares have increased by 35% over the past year and by 7.4% year-to-date, reflecting strong investor interest and confidence in the company's future [2]. - UBS raised Boeing's share price target to $285 from $275 while maintaining a Buy rating, highlighting improvements in free cash flow and production processes [2]. - Bernstein reiterated an Outperform rating, noting that the ramp-up in commercial aircraft production is progressing smoothly, which is likely to attract investor attention towards cash guidance [2]. Group 2: Analyst Insights - Jim Cramer has consistently expressed a positive outlook on Boeing, suggesting that the company's cash flow could improve, which aligns with recent analyst upgrades [2]. - Cramer mentioned potential significant wins for Boeing in markets like China and Saudi Arabia, indicating a favorable environment for future contracts and sales [2]. - The production capabilities of Boeing are improving, which could lead to a stock price target of $250, according to Cramer's insights [2].

Core Insights - Airbus is facing an "unprecedented number of crises" and "unsettling geopolitical developments," particularly due to U.S. protectionism and U.S.-China trade tensions, which are impacting its global supply chain operations [1] - Despite strong demand for its aircraft, Airbus is struggling with managing deliveries, margins, and cash flow as it moves forward [2] Group 1: Demand and Performance - In 2025, Airbus delivered 793 commercial aircraft and recorded 1,000 gross orders (889 net), resulting in a record backlog of 8,754 aircraft, including a widebody backlog of 1,124 [3] - The strong demand allows Airbus to maintain a long-term perspective, even as the CEO warns about near-term challenges [4] Group 2: Execution Risks - Airbus lowered its delivery goal for 2025 from around 820 to about 790 due to issues with A320 Family fuselage panels from a supplier, although its financial goals remained unchanged [5] - The delivery system's vulnerability is highlighted by the fact that even minor supply chain issues can lead to significant breakdowns, as evidenced by the engine supply problems with Pratt & Whitney and CFM (GE/Safran) [6]

Core Insights - Sales increased by 57% to $23.95 billion, driven by a significant rise in commercial aircraft deliveries, which reached their highest level since 2018 [1] Group 1 - The surge in sales indicates strong demand in the commercial aircraft sector [1] - The highest delivery point since 2018 suggests a recovery trend in the aviation industry [1]

Group 1 - Billionaire Gautam Adani's aerospace and defence business is set to announce a partnership with Brazil's Embraer to assemble commercial aircraft in India [1]

Core Insights - Boeing is expected to report a loss of 39 cents per share for Q4 2025, with revenues projected at $21.74 billion, reflecting a year-over-year growth of 42.6% [1][7] Financial Estimates - The Zacks Consensus Estimate for Q4 2025 shows a loss of $0.39 per share, with a high estimate of $0.30 and a low estimate of -$0.78 [2] - Year-over-year growth estimates indicate a significant recovery, with EPS expected to improve by 93.39% in Q4 2025 compared to the previous year [2] - The average negative surprise in earnings over the last four quarters has been 22.4%, with two beats and two misses [3] Earnings Prediction - The Earnings ESP for Boeing is +16.73%, suggesting a potential earnings beat, supported by a Zacks Rank of 3 (Hold) [4][5] Operational Performance - Boeing's Q4 deliveries increased by 180.7% year-over-year, driven by a recovery in production and delivery momentum [11] - The acquisition of Spirit AeroSystems is expected to enhance production stability and supply-chain management, positively impacting delivery and profitability [9] - Rising international air travel has increased demand for commercial jet maintenance and related services, contributing to sales growth [10] Challenges - Supply-chain pressures from tariffs and stressed suppliers continue to pose risks to production efficiency and cash flow [12] - The aviation industry faces challenges in sourcing sufficient quantities of steel and aluminum, which may delay aircraft program completions [21] Market Performance - Boeing's stock has returned 15% over the past three months, outperforming the industry growth of 7.8% [13] - The stock is currently trading at a discount compared to its industry on a forward 12-month P/S basis [15] Investment Thesis - The demand for commercial air travel and the need for new jets and aftermarket services are key growth drivers for Boeing [19] - Despite the positive outlook, persistent supply-chain issues may offset some of the growth potential [20][22]

Core Insights - Boeing stock (BA) increased by 50% over the past nine months, driven by a significant rise in revenue and heightened valuation enthusiasm [2][4] - Key factors contributing to this increase include a rise in orders, increased production, and favorable regulatory developments [2][4] Revenue and Valuation - The stock's growth was supported by a 21% increase in revenue and a 27% rise in valuation multiple [4] Orders and Deliveries - In 2025, Boeing surpassed Airbus with 1,173 net orders, marking the highest count since 2018 [9] - Commercial aircraft deliveries reached 600 in 2025, reflecting a 72.4% year-over-year increase, particularly strong in Q4 [9] Production Rates - The FAA approved an increase in 737 MAX production to 42 units per month, up from 38 in October 2025 [9]

Core Viewpoint - Airbus and Boeing are significant players in the industrial sector, particularly known for their commercial aircraft, and they have a strong influence on air travelers' perceptions [1] Group 1: Company Overview - Airbus and Boeing are transatlantic rivals in the aerospace industry, primarily recognized for their commercial aircraft offerings [1] Group 2: Market Influence - The competition between Airbus and Boeing captures the attention of air travelers, indicating their substantial impact on consumer sentiment and market dynamics [1]