Boeing shares close higher on Thursday, company’s commercial airplane division “not competitive”, says CFO

According to a February 23rd statement by Greg Smith, Boeings Chief Financial Officer, the companys commercial airplane division is “not competitive” under the present tax legislation in the United States and it was in support of changes to that regime. Also on February 23rd, US Treasury Secretary Steven Mnuchin noted that the Trump administration was to introduce tax changes by August.

Boeing shares closed higher on Thursday, while marking their ninth gain in the past ten trading sessions. The stock went up 0.86% ($1.50) to $176.86, after touching an intraday high at $177.00 and also the highest price level ever recorded. In the week ended on February 19th the shares of the plane maker added 3.90% to their market value compared to a week ago, which marked a second consecutive period of gains and also the best performance since the week ended on January 29th. The stock has extended its advance to 8.22% so far during the current month, after surging 4.97% in January. The latter has been a fifth straight month of gains. For the entire past year, the shares of the DJIA-included manufacturer gained 7.67%.

A reform in the tax regime is “going to drive growth, its going to drive our U.S. economy, its going to create jobs, its going to allow us to make more investments in our people, in our factories, in our products”, Greg Smith said in a statement at an investor conference, cited by Reuters.

“Were not competitive today … and were thankful to have the opportunity to have the podium and talk about it and, hopefully, help the administration think that through as theyre deciding on where they want to go with this.”

According to Smith, in 2017 Boeing Company (BA) is expected to decide whether to expand production of its 787 jetliner to 14 per month from the present rate of 12.

The CFO also said that the plane manufacturer envisaged scope for acquisitions in its new global services division. However, no details were provided.

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 – $176.98
R2 – $177.10
R3 (Range Resistance – Sell) – $177.22
R4 (Long Breakout) – $177.58
R5 (Breakout Target 1) – $178.00
R6 (Breakout Target 2) – $178.17

S1 – $176.74
S2 – $176.62
S3 (Range Support – Buy) – $176.50
S4 (Short Breakout) – $176.15
S5 (Breakout Target 1) – $175.73
S6 (Breakout Target 2) – $175.55

By using the traditional method of calculation, the weekly levels of importance for Boeing Company (BA) are presented as follows:

Central Pivot Point – $170.77
R1 – $175.19
R2 – $177.67
R3 – $182.09
R4 – $186.51

S1 – $168.29
S2 – $163.87
S3 – $161.39
S4 – $158.91