Boeing (NYSE:BA) Stock Dips as St. Louis Strike Ends—Why Wall Street Isn’t Celebrating

Machinists put down their picket signs—but investors kept selling. Boeing's post-strike hangover hits as markets shrug off resolution.

Labor peace at last? Not so fast. While the St. Louis walkout ended after 42 days, BA shares slid 1.8% in early trading. The aerospace giant's 'fix' came with hidden costs—classic corporate whiplash where operational wins meet skeptical traders.

Wall Street's take? 'Show me the money.' Until Boeing proves it can deliver both labor harmony and clean earnings, that ticker's going nowhere fast. Another case of 'buy the rumor, sell the news'—with extra jet fuel.

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All 3,200 members of the International Association of Machinists and Aerospace Workers Union District 837 will be back on the job Monday, having accepted the latest proposed contract and shutting down the strike that has been running since early August. Employees will land a $6,000 signing bonus each for ratifying the contract, and average wages will increase by around 24% over the life of the contract.

Reports suggest that there was a bit of a hidden stick to go with the carrots in the contract. Steve Parker, Boeing’s head of defense, noted that the union members WOULD still have jobs if they agreed to the fourth contract offer, the newest. He followed that up by saying, “This is not something we will be able to guarantee moving forward.”

Heading to Dubai

With the Dubai Airshow about to kick off in a little under a week—gates open November 17, reports note—Boeing is bringing an impressive piece of hardware with it: the 777X. It is currently in flight, on its way to Al-Maktoum International Airport, where it is expected to arrive at 1:00 PM local time.

The 777X represents a major advance for Boeing. It has much longer range than normal, reports note, as well as seat capacity that ranks among the best in the market. Throw in folding wingtips and a set of engines that represent “…the most powerful turbofans ever made,” and the end result is what reports call the “…most efficient jetliner in the sky.”

Is Boeing a Good Stock to Buy Right Now?

Turning to Wall Street, analysts have a Strong Buy consensus rating on BA stock based on 13 Buys and two Holds assigned in the past three months, as indicated by the graphic below. After a 41.52% rally in its share price over the past year, the average BA price target of $258.23 per share implies 31.95% upside potential.

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