Boeing expects major financial impact from recent incidents

TheStreet's J.D. Durkin brings the latest business headlines from the floor of the New York Stock Exchange as markets open for trading Thursday, March 21.

Full Video Transcript Below:

J.D. DURKIN: I'm J.D. Durkin - reporting from the New York Stock Exchange. Here's what we're watching on TheStreet today.

Stocks are coming off a solid day on Wall Street which saw all three major averages close in record territory. This comes after the Federal Reserve held interest rates steady with Chair Jerome Powell reiterating expectations for three rate cuts later in 2024.

Investors are also reacting to weekly jobless claims – 210,000 Americans filed for unemployment last week, down from 217,000 the previous week, only underscoring the continued strength of the U.S. labor market.

Meanwhile, Boeing is expecting to take a big loss in its first quarter in the wake of the Alaska door plug blowout incident. The embattled company is anticipating its operating profit margin to decline 20 percent, making it the biggest loss margin the company has endured in two years. From May 2021 to July 2022, Boeing halted deliveries of its Dreamliner 787 because of assembly quality control issues.

The Alaska incident led Boeing to ground its popular 737 Max jet and eventually slow production as it works on a fix. The 737 jet is Boeing's bestselling plane. Boeing has also faced a slew of negative headlines in recent weeks tied to safety issues with its planes.

And while Boeing is forecasting a negative year, its Chief Financial Officer sees brighter days ahead, anticipating the company to have a 'historic' comeback in the 2025 to 2026 timeframe.

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