Boeing extends lead as Dow’s biggest winner under Trump, GE paces the losers

Donald Trump got his wish, sort of: Boeing Co. isn’t just making a lot of money, it’s making “that much” money.

Boeing’s stock BA, +4.90%  soared 4.9% to a record close Wednesday, after the aerospace and defense contractor reported record fourth-quarter earnings of over $3 billion that nearly doubled from a year ago, and beat Wall Street profit expectations by a wide margin.

The company said results included a benefit of $1.74 a share, which translates to about $1.1 billion, from the recently passed tax-reform legislation. Read more about Boeing earnings.

Boeing shares have now more than doubled since then-President-elect Trump threatened on Dec. 6, 2016, to cancel an order for the company to build a new Air Force One because of spiraling costs, although the numbers he cited were disputed by the company and the administration at the time.

“I thing Boeing is doing a little bit of a number,” Trump told reporters back then, in the lobby of Trump Tower. “We want Boeing to make a lot of money, but not that much money.”

Don’t miss: Boeing’s stock dismisses Trump’s threat after company, White House respond.

Despite the rocky start, Boeing’s stock continues to extend its lead as the biggest gainer among the Dow Jones Industrial Average’s DJIA, +0.28%  components during Trump’s presidency. It has shot up 20.1% year to date, 37.3% over the past three months, 46.1% the past six months and 116.8% the past 12 months, and 132.7% since Dec. 6, 2016, enough to be the Dow’s best performer in all five periods.

Boeing, which has been a Dow member since March 12, 1987, has accounted for about 409 points, or 29%, of the Dow’s 1,431-point gain in January. Since Trump’s “that much money” comment, Boeing has added about 1,391 points to the Dow, accounting for one-fifth of the Dow’s 6,899-point gain.

Also read: Biggest Dow winners and losers in 2017: Boeing soars to record levels, GE slumps.

While Boeing continues to enjoy success, and helps propel the Dow toward record heights, shares of General Electric Co. continue to go in the opposite direction.

GE’s stock GE, +1.38%  rallied 1.4% Wednesday, but that’s after it closed the previous session at the lowest level since Dec. 1, 2011. It has shed 7.3% year to date to pace the Dow’s five decliners in 2018. The shares have tumbled 19.8% in three months, 36.9% in six months, 45.6% in 12 months and 48.1% since Dec. 6, 2016, making them the Dow’s worst performer for all those periods.

In contrast with Boeing, GE reported last week a fourth-quarter net loss of $9.8 billion, after a profit of $3.5 billion a year ago, with tax-reform legislation adding about $3.5 billion to the losses.

See also: GE stock swings lower after disclosure of SEC investigation.

If there’s a silver lining for investors, it’s that because GE is the lowest-priced Dow stock, it has the least effect on the Dow’s price. It has only shaved about 9 points off the Dow this year, and about 103 points off the Dow since Dec. 6, 2016.

Don’t miss: GE’s stock plunge puts 110-year run in the Dow industrials at risk.

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