Why Shares of General Electric Are Higher Today
Shares of General Electric (NYSE: GE) traded up 5% on Monday, a strong day for shares of airlines and aerospace suppliers as well. The moves are tied to positive developments in the global fight against the coronavirus, which investors hope could mean a faster-than-feared return for air travel.
General Electric came into 2020 with a lot on its plate. Last year CEO Larry Culp kicked off what was expected to be a multi-year turnaround plan focused on fixing the company's struggling energy businesses and paying down debt.
Aerospace, and more specifically GE's massive aircraft engine unit, was expected to be one of the company's few bright spots. It was also expected to be a cash-generation machine that would help fund a turnaround elsewhere. But the pandemic changed all of that, causing airlines to retrench and decreasing revenue for GE's engine business and other suppliers.
Source Fool.com
