The firm order for 16 jets is worth $4.6 billion at list prices, though discounts are normal in such orders. China Airlines announced the 787 agreement last month, weeks after a visit to Taipei by U.S. House of Representatives Speaker Nancy Pelosi angered Beijing and stoked Sino-U.S. trade tensions.
Shares of commercial airplane-builder Boeing (NYSE: BA) look ready to take off, says investment bank Morgan Stanley in a note out this morning, and could even rise as much as 80% in price over the next 12 months. Investors seem at least partially swayed by the argument, and Boeing stock is up the first 2% out of those 80% as of 11:05 a.m. ET Wednesday. Last week, Boeing stock got hit on a bit of bad news, which included reports that China's Xiamen Airlines has elected to buy A320neo aircraft from Airbus rather than 737 MAXes from Boeing.
Only the Nasdaq Composite (NASDAQINDEX: ^IXIC) managed to post a modest gain, but it still remains further below its all-time highs than its two benchmark counterparts. The reports lacked any details of what the possible terms of a deal might be, but investors are clearly assuming that Apollo would need to pay a hefty premium to the company's market capitalization as of Monday.