NEW YORK, NY / ACCESSWIRE / January 17, 2017 / Boeing shares skyrocketed to a new high but closed modestly in the red on Tuesday. The company announced a new joint venture with Adient to design and build airplane seats. Shares of General Electric Company plummeted after announcing that it would be taking an $11 billion hit in Q4 and that CEO John Flannery is open to breaking up the company.

RDI Initiates Coverage on:

The Boeing Company
http://www.rdinvesting.com/report/?ticker=BA

General Electric Company
http://www.rdinvesting.com/report/?ticker=GE

The Boeing Company shares traded fairly flat on Tuesday and closed down 0.31%. Despite the flat close, the stock hit a new high of $347.73 after the company announced that it and Adient have formed Adient Aerospace, a joint venture that will develop, manufacture and sell a portfolio of seating products to airlines and aircraft leasing companies. Boeing as well as other commercial airplane manufacturers will produce the seats that will be available for installation on new planes and as retrofit configurations for aircraft. Kevin Schemm, senior vice president of Supply Chain Management, Finance & Business Operations and chief financial officer for Boeing Commercial Airplanes remarked, "Seats have been a persistent challenge for our customers, the industry and Boeing, and we are taking action to help address constraints in the market. Adient Aerospace will leverage Boeing's industry leadership and deep understanding of customer needs and technical requirements, to provide a superior seating product for airlines and passengers around the world. This joint venture supports Boeing's vertical integration strategy to develop in-house capabilities and depth in key areas to offer better products, grow services and generate higher lifecycle value." Adient has a majority stake of 50.01% share while Boeing has a 49.99% share.

Access RDI's The Boeing Company Research Report at:
http://www.rdinvesting.com/report/?ticker=BA

General Electric Company shares closed down 2.93% on about 205 million shares traded yesterday. Trading volume was very significant on Tuesday compared to the stock's average trading volume of just under 82 million shares. Traders were less than happy to learn that General Electric will be taking an $11 billion hit in the fourth quarter as a result of tax changes and its long-term care insurance portfolio. Traders were also discouraged by new CEO John Flannery's comments about the possibility of selling pieces of the company. The Chief Executive is aiming to cut $3.5 billion in costs and slash thousands of jobs. He said, "I would categorize it as an examination of options and it's (the) kind of thing that could result in many, many different permutations, including separately traded assets really in any one of our units, if that's what made sense." The company will be providing another update on its review sometime in spring. According to CNBC who cited sources that were close to the company, a break-up was "likely."

Access RDI's General Electric Company Research Report at:
http://www.rdinvesting.com/report/?ticker=GE

Our Actionable Research on The Boeing Company (NYSE: BA) and General Electric Company (NYSE: GE) can be downloaded free of charge at Research Driven Investing.

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