Boeing gained 24% on Wednesday, reflecting investor optimism that a coronavirus aid package will soon be approved and the aviation industry will benefit.
The Senate plans to vote on a massive $ 2 trillion stimulus package on Wednesday to tackle the effects of the corona virus on the U.S. economy after several attempts at an agreement between the leaders and the Trump administration failed. The bill would then go to the house, where it is expected to be approved with unanimous approval.
The package would include corporate aid of up to $ 500 billion, according to The Wall Street Journal. The Senate bill would also provide US airlines with $ 58 billion in relief, divided into wage subsidies for workers and loans to the airlines themselves.
Boeing and other airline stocks rose Wednesday as the industry was hit hardest by the coronavirus pandemic, as major trips weren't stopped to curb the spread of the virus and the COVID-19 disease it caused.
The bill also divides The Washington Post reported $ 17 billion for companies that are critical to national security, including Boeing. The company said last week that the aerospace industry would need at least $ 60 billion in aid.
Boeing's surge came amid a broader market rally as investors' confidence in the early approval of a coronavirus stimulus package, which extended earnings starting Tuesday, was the market's best performance in 87 years.
By the close of trading on Wednesday, Boeing had lost more than 50% since the beginning of the year.
(tagsToTranslate) Boeing (t) Boeing share price (t) Boeing share (t) US airlines (t) Coronavirus pandemic (t) Coronavirus (t) ba (t) BA