Boeing's stock rises to pace the Dow's gainers; BofA sees signs that investors fear missing out on upside

Shares of Boeing Co. rallied 2.2% in afternoon trading Monday, enough to pace the Dow Jones Industrial Average's gainers. The aerospace and defense giant, which is still reeling from the extended grounding of its 737 MAX planes, has now seen its shares bounce 11.3% off the 13-month closing low of $309 on Jan. 22. BofA Securities analysts Ronald Epstein and Gonzalo Asis said that an analysis of how Boeing's stock options are trading, and following discussions with equity investors, suggest that "investors are less worried about downside risks than about missing a move higher." The analysts wrote in a note to clients that there is "anecdotal support," from Boeing Bull/Bear lunches in New York and conversations with investors, that there is a "positive bias in owning Boeing's stock in the near term, particularly as the 737 MAX approaches re-entry into service this summer." Boeing said last month that it expects the 737 MAX to return to service in mid-2020. Boeing's stock was still down about 2% over the past three months, while the Dow was up 5.3%.

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