Boeing stock falls amid breakdown in union talks, risk of credit rating downgrade

Published On Oct 9, 2024, 10:06 AM

Boeing's stock fell more than 2% after the company withdrew its contract proposal during negotiations with its machinist union, which has been on strike for over four weeks. Talks broke down due to the union's demands which Boeing deemed non-negotiable. Additionally, S&P has placed Boeing on CreditWatch negative, indicating a potential downgrade to junk status due to ongoing labor issues. The current strike is estimated to be costing Boeing over $1 billion per month, further complicating its recovery efforts in production and impacting its financial outlook for 2024.