Al Root
Most stocks were higher on Wednesday after President Donald Trump agreed to a two-week cease-fire with Iran, subject to opening the Strait of Hormuz to oil tankers.
The S&P 500 was up 2.4%. The Dow Jones Industrial Average was up 2.7%. Shares of commercial aerospace companies are doing much better.
Shares of GE Aerospace were up 7.2% at $309.22 in midday trading. It would be the largest one-day gain in almost a year. Shares rose 10.6% on April 9, 2025, amid volatility spurred by Trump's April 2 tariff announcement last year.
Shares of other engine suppliers, including Safran and Rolls-Royce, rose 10.6% and 11.9% in overseas trading on Wednesday. Shares of suppliers Hexcel, Heico, and TransDigm were up 4.3%, 6.3%, and 4.1%, respectively. Boeing stock was up 3.7%.
Coming into Wednesday trading, those companies were down an average of 13% since the start of the fighting in Iran. Rising oil prices in particular threaten to raise airline ticket prices, destroying travel demand. Benchmark oil prices were down almost 14% in midday trading, to below $95 a barrel.
Only three ships have crossed the Strait on Wednesday, according to Bloomberg. Things aren't back to normal yet. Before fighting began, 50 to 80 ships would routinely cross the Strait per day.
Despite recent drops, those stocks were up 46% on average over the past 12 months. The outlook for commercial aerospace is solid, with Airbus and Boeing delivering too few jets since the Covid-19 pandemic, partly due to supply chain issues and partly due to Boeing's internal issues. The pair delivered 1,600 jets in 2018. They are expected to eclipse that number in 2027.
The lack of new planes has also created opportunities in the aftermarket, with older planes flying for longer.
It all adds up to growth: Wall Street projects 11% sales growth and 16% earnings growth for GE Aerospace over the coming three years. For that to happen, though, oil prices will need to cooperate.
Write to Al Root at allen.root@dowjones.com
This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
April 08, 2026 13:59 ET (17:59 GMT)
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