Boeing Stock Up Amid Production Challenges

Boeing's stock is trading higher in premarket Thursday as investors weigh production and certification updates against a stronger broader market.

Nasdaq futures are up 1.15%, while S&P 500 futures have gained 0.88%.

The aerospace giant faces several challenges, including wing production bottlenecks in its 737 production ramp, which has yet to stabilize at a rate of 47 aircraft per month.

CEO Kelly Ortberg said wing production in Renton remains the primary constraint, while the broader supply chain, including engines, is in good shape.

The company expects 737 MAX 10 certification 'very soon', with flight testing complete and only documentation and regulatory review remaining. The MAX 10 represents roughly 30% of Boeing's 737 backlog.

However, the 777X faces another hurdle as Boeing awaits completion of GE Aerospace's engine mid-seal certification plan before it can begin ETOPS testing. Some testing could spill into next year.

Ortberg also tempered expectations for a potentially large China aircraft order, clarifying that Boeing did not receive a roughly 200-plane order earlier this year, but rather Chinese officials indicated plans to move forward with purchases incrementally and announced by individual airlines.