Boeing stock turned higher in Monday trading after investors stopped worrying about quality problems for a minute and thought about strong demand for new commercial jets instead.
Boeing shares had dipped to as low as about $197 early Monday after Friday’s $200 close. Investors have been weighing what a potential takeover of supplier Spirit AeroSystems Holdings means for Boeing stock and efforts to improve manufacturing quality. Both companies confirmed talks this past Friday.
Early Monday, Boeing stock was down about $10 dollars since buyout talks surfaced. Spirit Aero shares were up about $5, to $33.32 over the same span.
Boing shares rebounded, for a gain of about 0.3% in midday trading while the S&P 500 and Dow Jones Industrial Average are down 0.1% and 0.2%, respectively.
American Airlines Group helped turn things around. Monday, American announced an order for 260 jets, including 85 Airbus A321neo jets and 85 Boeing 737 MAX 10 jets.
That’s a win for Boeing. The Airbus A321neo has been a commercial smash hit for Airbus. The MAX 10 — the largest variant of the 737 MAX — is designed to compete with it. Airbus has taken in roughly 6,200 orders for its A321neo jet. Boeing has taken in 1,200 orders for its MAX 10 jet.
The MAX 10 isn’t certified to fly yet. Boeing hopes to have the plane ready to deliver to customers in 2025.
Boeing didn’t immediately respond to a request for a comment on timing.
Orders for the MAX 10 also help boost hopes that Boeing doesn’t need to design an all-new jet to compete with the A321neo. All-new jets can take up to 10 years and $10 billion to develop. A successful MAX 10 is preferred for the company — and its investors.
Overall, in the battle between Boeing and Airbus for supremacy in the market for single-aisle commercial jets, Boeing has taken in a total of 7,800 orders for all MAX jet types. The 737 MAX 8 and MAX 9 are the two versions certified to fly. Boeing is still working on approving the shorter MAX 7 and the longer MAX 10. Airbus has taken in a total of about 10,300 orders for its competing A320neo and A321neo jets.
Write to Al Root at allen.root@dowjones.com