Boeing Soars, Hits Resistance Amid Labor Deal
Boeing stock took flight Monday as the aerospace giant and the International Association of Machinists and Aerospace Workers came to terms on a potential new contract.
If approved by workers, the deal would bring a crippling monthlong strike to an end. However, if it is rejected it could mean more pain for the defense stock. Standard & Poor's has estimated that Boeing is losing $1 billion a month due to the strike.
A vote on the proposal is expected Wednesday. Under the terms of the deal, workers get a 35% wage increase over the four-year span of the contract.
Boeing stock rallied sharply but was off highs heading into the close. It was up nearly 3%, but the stock is meeting resistance as it tries to retake its 50-day moving average, according to MarketSurge analysis.
If shares can overcome this and mount the key technical benchmark, it would be a positive step for the stock.
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