Boeing and ArcelorMittal (NYSE: BA, NYSE: MT) – A Closer Look Post Data

We’re playing catch-up… Wednesday’s earnings review highlighted reports from Boeing, ArcelorMittal, Delta Airlines, WellPoint, General Dynamics, Northrop Grumman and P.F. Chang’s China Bistro. The report that follows highlights the news and outlook for Boeing and ArcelorMittal.

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Boeing and ArcelorMittal (NYSE: BA, NYSE: MT) – A Closer Look Post Data

Boeing
After a gap open Wednesday and a strong spike, the stock closed only fractionally higher. Boeing (NYSE: BA) shares were up more significantly through Friday midday trading though. Boeing reported better results than expected, enthusing and expanding its shareholder base. The company posted a turnaround in its commercial aircraft unit and also offered better guidance for its defense and aerospace business. But with higher fuel costs pressuring its commercial aircraft customers and tightening sovereign budgets pressuring its defense unit, we express caution. The stock is well off its May highs though and looks to have a solid technical support. Still, it’s the fundamental business I’m worried about moving forward. It’s most recent PEG ratio looks to be about 1.5, before adjustment for recent results, and is based on a long-term growth outlook of about 11.6%. Next year’s growth looks solid enough to support the stock, and given the company’s reinforcing guidance, the stock looks safe to hold over the short-term. However, I would not be adding to positions based on my concern that orders should slacken in a deteriorating global economic environment that seems probable in my macro view.

ArcelorMittal
The world’s largest steel maker now, ArcelorMittal (NYSE: MT) responded to investor concerns sparked by United States Steel (NYSE: X) and AK Steel (NYSE: AKS) Tuesday regarding current softness. MT said demand from China and U.S. automakers would pick-up the soft quarter so that the issue would not bear out into trend. Traditionally, automakers tend to close factories for a few weeks in the summer for maintenance work, and the Japanese shock also played a role in the temporary dip. As a result of the disaster though, new construction demand from Japan should support the steel market moving forward, especially for Japanese companies like Nippon Steel. Chinese consumption is seen increasing about 8.5% through 2011. Of course, ArcelorMittal and all the steelmakers are threatened by the debt debacle in the U.S. and further deterioration in Europe, and so I cannot be gung ho on steel nor MT today. The stock’s long-term chart also offers protection against short side risk though, and its valuation at a 0.5 PEG ratio is not particularly unappealing either. It’s the kind of cyclical idea that could take off on a good US debt deal that takes debt-downgrade risk off the table, but today the issue is still up in the air. The stock has been down all week and but is seeking stability today.

Others reporting earnings Wednesday: 1st United Bancorp (Nasdaq: FUBC), A.H. Belo (NYSE: AHC), Acco Brands (NYSE: ABD), Acura Pharmaceuticals (Nasdaq: ACUR), Acxiom (Nasdaq: ACXM), Adolor (Nasdaq: ADLR), Advance America Cash Advance (NYSE: AEA), Aegerion Pharmaceuticals (Nasdaq: AEGR), Aetna (NYSE: AET), Affymetrix (Nasdaq: AFFX), Aflac (NYSE: AFL), Akamai (Nasdaq: AKAM), Alere (NYSE: ALR), Alexandria Real Estate (NYSE: ARE), Allegheny Technologies (NYSE: ATI), Alliance Holdings (Nasdaq: AHGP), Alliance Resource Partners (Nasdaq: ARLP), Ambassadors Group (Nasdaq: EPAX), Amdocs (NYSE: DOX), American Railcar (Nasdaq: ARII), AmeriGas Partners (NYSE: APU), Ameriprise (NYSE: AMP), Amkor (Nasdaq: AMKR), Annaly Capital (NYSE: NLY), ArcelorMittal (NYSE: MT), Audiocodes (Nasdaq: AUDC), Autonation (NYSE: AN), AvalonBay Communities (NYSE: AVB), Bemis (NYSE: BMS), BMC Software (NYSE: BMC), Boeing (NYSE: BA), BOK Financial (Nasdaq: BOKF), Boyd Gaming (NYSE: BYD), Britton and Koontz Capital (Nasdaq: BKBK), BroadVision (Nasdaq: BVSN), Cabot Oil and Gas (NYSE: COG), CB Richard Ellis (NYSE: CBG), Churchill Downs (Nasdaq: CHDN), Citrix Systems (Nasdaq: CTXS), Cliffs Natural Resources (NYSE: CLF), CNO Financial (NYSE: CNO), Coherent (Nasdaq: COHR), ConocoPhillips (NYSE: COP), Costar Group (Nasdaq: CSGP), Covance (NYSE: CVD), Crocs (Nasdaq: CROX), Crown Castle Int’l (NYSE: CCI), Delta Airlines (NYSE: DAL), Diebold (NYSE: DBD), Dow Chemical (NYSE: DOW), Dr. Pepper Snapple (NYSE: DPS), Energizer (NYSE: ENR), Equifax (NYSE: EFX), Everest Re (NYSE: RE), Famous Dave’s (Nasdaq: DAVE), First of Long Island (Nasdaq: FLIC), Flowserve (NYSE: FLS), Fox Chase Bancorp (Nasdaq: FXCB), General Dynamics (NYSE: GD), General Maritime (NYSE: GMR), Global Crossing (Nasdaq: GLBC), Green Mountain Coffee (Nasdaq: GMCR), Hanger Orthopedic (NYSE: HGR), Hospira (NYSE: HSP), Iberiabank (Nasdaq: IBKC), International Shipholding (NYSE: ISH), Lam Research (Nasdaq: LRCX), Level 3 Communications (Nasdaq: LVLT), Lithia Motors (NYSE: LAD), Merck (NYSE: MRK), Morningstar (Nasdaq: MORN), Navios Maritime (NYSE: NMM), Northrop Grumman (NYSE: NOC), Oceaneering Int’l (NYSE: OII), Owens-Illinois (NYSE: OI), P.F. Chang’s China Bistro (Nasdaq: PFCB), Praxair (NYSE: PX), RailAmerica (NYSE: RA), RightNow Technology (Nasdaq: RNOW), Safeguard Scientifics (NYSE: SFE), SAP (NYSE: SAP), Sealed Air (NYSE: SEE), Service Corp. (NYSE: SCI), Shutterfly (Nasdaq: SFLY), Stericycle (Nasdaq: SRCL), Sturm Ruger (NYSE: RGR), Superior Energy (NYSE: SPN), Teradyne (NYSE: TER), Teva Pharmaceuticals (Nasdaq: TEVA), THQ (Nasdaq: THQI), Tupperware Brands (NYSE: TUP), USA Mobility (Nasdaq: USMO), Visa (NYSE: V), Wellpoint (NYSE: WLP), Whole Foods Market (Nasdaq: WFM), Wyndham Worldwide (NYSE: WYN) and more.

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