CNBC Investing Club host Jim Cramer said Boeing’s defense business and GE Vernova’s demand visibility could support their longer-term prospects as both stocks came under pressure Wednesday.
CNBC reported that Boeing shares fell for a second session on Oct. 28, following a 10.7% decline Tuesday. The recap said investor concern persisted after management set out a multiyear free-cash-flow outlook below expectations.
The company’s projections partly reflected advance costs for a U.S. Navy contract to develop next-generation fighter jets. For the 737 Max, executives projected no significant production increase until late next year, CNBC reported.
Cramer’s case for Boeing rested on its defense business. He said recent contract wins could bolster the company’s longer-range prospects even as cash-flow and production questions weighed on shares.
CNBC reported that GE Vernova shares weakened after management comments suggested power orders could ease in 2027. Its third-quarter update brought higher guidance and nearly doubled orders, while the company announced a $9 billion acquisition of Trench Group, a high-voltage equipment maker. GE Vernova also doubled its authorized share repurchases, taking the total to $20 billion, the recap said.
Cramer called the sell-off unwarranted, citing the backlog, improved profitability and demand visibility through 2031 and 2032. He also pointed to management’s confidence that financing concerns were not causing customers to abandon projects, CNBC reported.
In its Wednesday morning recap, CNBC described markets as little changed as investors awaited the Federal Reserve’s interest-rate decision and a news conference by Fed Chairman Kevin Warsh. Cramer said uncertainty over rates, the U.S. midterms and oil was keeping markets in a holding pattern.
CNBC said Cramer emphasized retaining the Club’s roughly 15% cash position amid geopolitical tensions to preserve room for potential purchases. The outlet disclosed that Jim Cramer’s Charitable Trust held long positions in both Boeing and GE Vernova.
