NEW YORK – Shares of Boeing Co. (BA) gained more than 3 percent on Monday as investors applauded the No. 1 U.S. aerospace company's tentative agreement with the workers who build its commercial jets.
The deal paves the way for an early end to the machinists strike that began September 2, which many analysts had been predicting could drag on for months.
Boeing shares were up $2.29, or 3.6 percent, at $65.49 on the New York Stock Exchange (search), the top gainer in the Dow Jones Industrial Average (search) and by far the biggest contributor to the index's gain.
"We believe that this deal should allow the company to maintain its productivity, to have the production slots available for current sales campaigns, and enable Boeing to remain highly competitive," Jefferies analyst Howard Rubel said in a research note reiterated his "buy" rating on the stock.
The contract that some 18,000 union members on Thursday are due to vote on gave ground to their demands on pension benefits, health care and other issues, but also reduced some of the Chicago-based company's initial offers on wage increases and participation in its VIP savings plan.
Shares of Boeing suppliers also gained, with Goodrich Corp. (GR) up 2.3 percent and Rockwell Collins Inc. (COL) 1.4 percent higher.
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