Stocks staged broad rallies on Tuesday with the S&P 500 jumping nearly 1% and Nasdaq Composite gaining 1.45% Small cap stops were flat on the day and the Dow Jones Industrial Average gained 0.3%.
Boeing and its mechanist union held an unproductive round of talks on Monday and Tuesday. Boeing stock falls as the strike continues.
Boeing Co. BA recently halted negotiations with the International Association of Machinists and Aerospace Workers (IAM), pulling its latest offer off the table after a month-long strike began in September.
24/7 Wall St. Insights A worker strike is costing Boeing Co.
Boeing and union leaders resumed negotiations on Monday but reached a stalemate by the end of Tuesday. IAM District 751 said Boeing was "hell-bent" on its second offer, which had now been withdrawn.
The plane maker withdraws its recent offer to the union.
S&P Global Ratings may downgrade Boeing bonds due to cash issues amid a strike. The strike risks Boeing's recovery and affects 737 Max production — and the company's cash flow.
Boeing (BA, Financial) shares dropped more than 1.5% in pre-market trading, priced at $152.29. S&P has placed Boeing on a negative ratings watch, indicating a potential downgrade to junk status.
Boeing (BA, Financial) faces a significant threat to its credit rating from S&P due to an ongoing strike. The credit rating agency warns that Boeing could be downgraded to junk status.
Boeing Co's (NYSE:BA, ETR:BCO) share price ended lower after the company announced it had withdrawn its pay rise offer to striking workers, citing a breakdown in negotiations with the International Association of Machinists and Aerospace Workers (IAM) union. The plane maker accused the union of failing to seriously consider its final offer, which included a 30% pay rise over four years, compared to the 40% demanded by the union.
Boeing said Tuesday it has withdrawn a pay raise offer made to its striking factory workers and no further negotiations with union representatives are planned at the moment after talks between both sides collapsed, extending the major work stoppage that began last month as the plane maker grapples with multiple financial and regulatory woes.
Talks between Boeing and its largest union to end an almost monthlong strike collapsed for a third time, extending a shutdown of the planemaker's key commercial manufacturing base on the US west coast. S&P Global Ratings is weighing downgrading Boeing's credit score to junk as the company continues to suffer from the fallout of the strike.