Boeing reports massive loss on new Air Force One jets

TheStreet's J.D. Durkin brings the latest business headlines from the floor of the New York Stock Exchange as markets close for trading Wednesday, October 25.

Full Video Transcript Below: 

J.D. DURKIN: I'm J.D. Durkin, reporting from the New York Stock Exchange.

Stocks were down significantly to close out today's session. The Dow closed down over 100 points, the Nasdaq closed down 2.4 percent, and the S&P closed 1.4 percent lower - marking its lowest level since June.

This comes after mixed results from Google parent company Alphabet – while the tech giant did post stronger than expected earnings, the slump in its cloud business seemed to weigh heavily on markets. Alphabet stock witnessed its single biggest daily drop since last year.

As far as tech earnings go, Wall Street is still awaiting Meta, which reports later this evening, Amazon, which reports tomorrow, and Apple, which will release results next week. So far, about 30 percent of companies in the S&P 500 have reported earnings. Of those, 78 percent have beat Wall Street estimates.

In other news - Boeing continues to take on massive losses thanks to its contract to furnish two of its 747 jets into the next Air Force One planes. The company revealed it would lose another $482 million on the contract.

Boeing has already lost more than a billion dollars on each of the planes, and company CEO Dave Calhoun has since admitted it was probably a mistake to make the deal, saying just last year that “Air Force One, I’m just going to call a very unique moment, a very unique negotiation. A very unique set of risks that Boeing probably shouldn’t have taken. But we are where we are.”

According to Boeing, the latest round of losses stem from engineering changes, supplier negotiations, and an unstable labor force.

Boeing has reported losses in all but two quarters since 2019. It has lost more than $25 billion since two fatal crashes involving its 737 Max jet grounded the entire fleet for almost two years.

That'll do it for your daily briefing. From the New York Stock Exchange, I'm J.D. Durkin with TheStreet.