Boeing shuffles 737 Max management as Alaska Airlines incident continues to weigh on stock

TheStreet’s J.D. Durkin brings the latest business headlines from the floor of the New York Stock Exchange as markets open for trading Thursday, February 22.

Full Video Transcript Below:

I’m J.D. Durkin – reporting from the New York Stock Exchange. Here’s what we’re watching on TheStreet today.

Markets are reacting positively to better than expected fourth-quarter earnings from NVIDIA. The chip giant saw its revenue surge 265 percent over the last year thanks to its booming A-I business.

Investors are also reacting to a drop in jobless claims. 201,000 Americans filed for unemployment last week, a drop of 12,000 from the previous week, showing continued strength in the labor market.

In other news – after Boeing’s continued issues, the company has removed the head of its 737 MAX program. Ed Clark, the now former head of the unit, will leave the company immediately, and the position will be filled by Boeing’s chief of its Commercial Airplanes unit. Boeing had been under intense scrutiny from Congress to prove it is committed to making safer planes.

Clark had been with the company for 19 years, taking over the 737 MAX program in March 2021. That was just months after a global grounding for the jets was lifted – that grounding stemmed from two crashes that claimed the lives of 346 people. Clark’s departure followed this year’s Alaska Airlines incident, which saw a door plug blow out mid-flight and forced another grounding of the planes, putting immense pressure on Boeing to make changes.

Last week, the F-A-A released a statement about Boeing’s production of 737 MAX jets, saying quote “We are aggressively expanding oversight of new aircraft with increased floor presence at all Boeing facilities to ensure Boeing is delivering safe airplanes.”

The groundings, along with several stints of halted production on other MAX planes, have led to big losses for Boeing. The company reported a $2.2 billion lost in 2023 and almost $27 billion over the last five years.

That’ll do it for your daily briefing. From the New York Stock Exchange, I’m J.D. Durkin with TheStreet.

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