It sounds counterintuitive for Boeing (NYSE: BA) shares to trade up on news that the aerospace giant will face a federal fine due to its 737 MAX production woes. But investors were worried the punishment would be far worse, and are glad to have the issue resolved. For that reason, the stock climbed as much as 5% higher on the news.
It's been a tough couple of years for Boeing. The 737 MAX was grounded in March 2019 after a pair of fatal accidents, and the investigation into what went wrong painted an unflattering picture of Boeing's internal controls. The issues have led to criticism of the company by some of its most important customers, and increased regulatory scrutiny.
Image source: Boeing.
Source Fool.com