The DJIA-featured aircraft manufacturer Boeing officially announced yesterday that it intends to reduce production of its twin-aisle 777 jet to 5 per month in August 2017. It would represent a 40% cut in comparison with the present rate of 8.3 jets per month.
Boeing shares closed higher for a fifth consecutive trading session on Monday. The stock added 0.43% ($0.67) to $157.16, after going up as high as $158.00, or a level not seen since February 20th 2015 ($158.83). In the week ended on December 11th Boeing shares soared 2.78% compared to a week ago, which marked their third consecutive period of advance and also the strongest performance since the week ended on November 13th. The stock has gained 4.38% so far during the current month, following three successive months of advance. In November Boeing shares added 5.71% to their market value.
The airliner said that it will cut production of the 777 model further to 3.5 jets a month in 2018, in order to focus on the assembly of its 777X model. Such a sharp reduction in output would also decrease Boeings revenue, generated from the 777 model (about $160 million per jet), and would lead to personnel lay-offs.
Elizabeth Lund, vice president in charge of Boeings 777 program, addressed a letter to employees on Monday, informing them that job cuts are expected in Everett in 2017.
“The exact number of affected positions has not yet been determined”, the letter stated, as cited by the Seattle Times. “We will do our best to lessen the impact.”
The segment of employees, which will probably be affected the most, includes those engaged in building the aircraft. About 3 400 mechanics are engaged directly in assembling the 777 jet in the Everett factory, while several hundred more manufacture the tail and wing elements of the model in Frederickson, Washington.
Daily and Weekly Pivot Levels
With the help of the Camarilla calculation method, todays levels of importance for the Boeing stock are presented as follows:
R1 – $157.50
R2 – $157.84
R3 (Range Resistance – Sell) – $158.18
R4 (Long Breakout) – $159.20
R5 (Breakout Target 1) – $160.38
R6 (Breakout Target 2) – $160.93
S1 – $156.82
S2 – $156.48
S3 (Range Support – Buy) – $156.14
S4 (Short Breakout) – $155.13
S5 (Breakout Target 1) – $153.94
S6 (Breakout Target 2) – $153.39
By using the traditional method of calculation, the weekly levels of importance for Boeing Company (BA) are presented as follows:
Central Pivot Point – $154.46
R1 – $158.91
R2 – $161.32
R3 – $165.77
R4 – $170.21
S1 – $152.05
S2 – $147.60
S3 – $145.19
S4 – $142.77
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