Boeing Shares Take Off, but Dow Grounded with 250-Point Loss

Shares of Boeing traded higher on Wednesday morning as the company reported better-than-expected third-quarter earnings and raised its 2018 earnings forecast to what may be a record revenue year for the aircraft manufacturer.

Boeing reported adjusted earnings of $3.58 a share, which bested analyst expectations by 11 cents. In addition, third-quarter revenue was $25.15 billion–over $1 billion better than analyst expectations.

The aerospace company upped its 2018 earnings forecast for the year to fall within a range of $14.90 to $15.10–higher than its initial targets of $14.30 to $14.50. Revenue for the full 2018 could exceed $100 billion, which would be a first for the company.

Shares of Boeing were up 2% as of 11:10 a.m. ET as volatility continues to reign in the capital markets with the Dow Jones Industrial Average falling over 200 points and the Nasdaq Composite was down over 100 points.

“We believe investor concerns about the macro issues (tariffs/trade, emerging market growth, interest rates) have subsided to an extent, and the strong free cash flow in the quarter is a positive catalyst for the stock,” said Canaccord Genuity’s Ken Herbert . While he thinks long-term margin targets might be a stretch and macro risks will remain, “recent supply chain risks appear to have lessened.”

Boeing’s CEO attributed the strong third quarter to a rise in military contract deals struck over the summer.

“What really surprised us to the upside was aerospace margins in the 13 percent range and they’re raising their guidance for that,” Jefferies analyst Sheila Kahyaoglu said on CNBC’s “Squawk Box.”