China suspended jet deliveries from Boeing amid a trade war with the U.S.
Aircraft manufacturer Boeing Co (NYSE:BA) is pumping the breaks on its recent rally. The security was last seen down 1.8% at $156.50, after Bloomberg reported that China ordered carriers to suspend jet deliveries amid the trade war with the U.S. The country's top three airliners, Air China, China Eastern Airlines, and China Southern Airlines, had planned to take delivery of a combined total of 179 Boeing planes in the next two years.
It's worth noting that Morgan Stanley stated there was minimal downside risk from China's delivery halt. The country only makes up 6% of total Boeing deliveries, compared to 10 years ago when it was easily 20% on any given year.
During this past month's tariff-related volatility, Boeing stock saw a sharp selloff followed by an extended bounce starting April 7. Familiar pressure at the $160 level seems to have kept the rally in check, however. The equity is historically an April underperformer, down 8.5% since the start of the month, and also carrying an 11.9% year-to-date deficit.
Calls have been more popular than usual in the options pits. BA's 50-day call/put volume ratio of 2.02 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) ranks higher than 84% of readings from the past year. Should some of this optimism start to unwind, it could provide further headwinds.