Ahead of the Tape
Highflier Is Prone to Economic Air Pockets</br></br>Ladies and gentlemen, markets have turned on the fasten-seatbelt sign for Boeing Co.</br></br>Stock-market turmoil in Europe and ultralow government bond yields point to economic weakness ahead for the world economy. Because aerospace sales portend long-term economic trends, Boeing's stock has been one of the most sensitive blue chips when the economy turns down.</br></br>Over the past seven U.S. recessions, for example, the shares have dropped by an annualized 23% on average. By contrast, the S&P 500 fell by just 1.8% during the same periods.</br></br>But unless Boeing Co.'s management changes its basically upbeat outlook or reports slippage in its delivery schedule, Wednesday's second-quarter results won't send investors into a brace position yet.