Boeing stock dips after China Eastern Airlines 737 plane crashes

Yahoo Finance Live's Julie Hyman discusses how Boeing stock is performing.

影片文字轉錄稿

JULIE HYMAN: Welcome back to Yahoo Finance Live. I'm Julie Hyman. We are watching futures that are not much changed. Slightly to the downside this morning, but we are watching some individual movers as well. One of them is Boeing. And that's on the news that there was a crash of a jet this morning in Southern China. It was a Boeing plane. But just to be clear here, as our Alexis Keenan told us at the top of the show, this was a 737-800, not a 737 Max that has been involved in crashes in the past.

That said, there are reports that the Chinese authorities have grounded this type of plane, but I've been reading this morning that, and again, as Alexis mentioned, this is a plane that does have one of the strongest safety records in the industry. So it's not as though, at least to date, there have been sort of systematic issues with this plane.

Remember, the two flights that-- the two crashes that involved the 737 Max occurred in October of 2018 and then March of 2019. And many airlines around the world have been gradually adding that flight-- that plane, excuse me, back to their rosters. But as you've been looking at, Sozz, those Boeing shares, they're down 4% this morning. They're up off the lows this session, but they haven't recovered since those crashes in 2018 and 2019.

BRIAN SOZZI: No, you could still feel or even just see-- I'm just on Yahoo Finance Plus right now, Julie. I mean, Boeing was a-- hit a high of $446 in February 2019. That's back when Dennis Muilenburg was the CEO of the company. They were announcing new share repurchase programs, record deliveries, just record after record.

And of course, then you had the Max issue come to light, and you still have just seen, I think, this reluctance by investors to believe in the turnaround story that is Boeing. I mean, the company's financials have been severely impaired, so there's a long way to go for Boeing to become Boeing again.

But Julie, I would watch this one other issue. Here's an American company. Their American plane goes down in China, and we'll learn more about it. But still, the optics of that right now in this heated geopolitical environment is not good for a company like Boeing.

JULIE HYMAN: Yeah, and of course, we have the backdrop as well for Boeing of what's going on with the travel industry, this sort of back and forth in terms of return to travel and then orders for Boeing planes from the commercial side of the business. So that's something to continue to watch as well.