Boeing Co (NYSE:BA) is facing a mix of regulatory changes, potential legal challenges and technical indicators that suggest a cautious outlook. Here's a closer look at the recent developments and what they mean for Boeing stock investors.

Aviation Bill Boosts Boeing Stock

The U.S. House of Representatives passed a comprehensive aviation bill aimed at improving air traffic controller staffing, enhancing runway safety and expediting refunds for canceled flights. This $105 billion, five-year measure, which passed with a 387-26 vote, now awaits President Joe Biden's signature.

The legislative push underscored the growing urgency to bolster aviation safety following a series of near-miss incidents and a mid-air emergency involving an Alaska Airlines Boeing 737 MAX 9.

A significant component of the bill is the provision allowing Boeing to continue producing its 767 freighter until 2033, despite new efficiency rules set to take effect in 2028. This exemption provided Boeing with a crucial window to maintain its production lines and market presence in the freighter segment.

While the aviation bill provided a ray of hope for Boeing, a recent indication by the Department of Justice (DOJ) spells caution.

Boeing stock was trading up by 2.83% by 10 a.m., Thursday. It had dipped by 1.75% on Wednesday after the DOJ news.

Boeing's Legal Troubles Resurfacing

Boeing's legal troubles have resurfaced as the DOJ indicated potential criminal liability related to the 737 Max crashes that resulted in 346 deaths. The DOJ claimed Boeing violated a 2021 agreement that shielded it from prosecution by failing to enforce a compliance and ethics program to prevent fraud. The decision on whether to pursue prosecution remained pending, but this development added a layer of uncertainty for investors.

Related: Justice Department Accuses Boeing Of 2021 Settlement Breach

Chart: Benzinga Pro

On the technical side, Boeing's stock is experiencing moderately bullish signals from various indicators. The current price is $183.23, which is above the 8-day simple moving average (SMA) of $179.53, suggesting bullish sentiments. Similarly, the 50-day SMA also trading below the price line at $179.84, added to the optimism.

However, 200-day SMA at $205.87 indicated long-term bearishness trading way above the current price.

Chart: Benzinga Pro

The Moving Average Convergence Divergence (MACD) indicator is positive at 0.50, pointing to a bullish sentiments. The Relative Strength Index (RSI) is at 57.04, indicating the stock is neither overbought nor oversold.

Investors should stay informed about Boeing's regulatory landscape and legal challenges, which could impact its stock performance. While the technical indicators provide moderately bullish signals, cautious optimism is advised, as it could be momentum-driven due to the aviation bill news.

Photo: Courtesy Boeing