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Want to know where the stock market is going next? Watch Boeing

  • Boeing stock is increasingly correlated with the general stock market over the past month versus over the past two years, according to Kensho data.
  • Investors may want to focus on the aerospace company's share price as an indicator for the market.
An employee works on the nose of a Boeing airplane at the company's facility in Everett, Washington.
Mike Kane | Bloomberg | Getty Images
An employee works on the nose of a Boeing airplane at the company's facility in Everett, Washington.

Boeing shares and the market are rising Tuesday after a conciliatory speech by China's leader eased global trade-war worries. This has fit a recent pattern and points further to how investors may want to focus on Boeing's stock price as an indicator for the general market.

As day-to-day stock moves seem to be swayed by the latest trade news developments between the two countries, Boeing is increasingly correlated with the stock market over the past month versus over the past two years, according to Kensho data.

Boeing's correlation with the S&P 500 rose to 0.71 over the past month from 0.59 over the past two years.

The aerospace company's shares rose 3.8 percent Tuesday, while the S&P 500 rallied 1.6 percent. About 12 percent of Boeing's sales are generated in China, according to FactSet data. The company announced a $37 billion order for its planes from China last year.

On Tuesday President Xi Jinping laid out plans in several key areas to make China's domestic economy more accessible to foreign businesses. His remarks at the Boao Forum for Asia alleviated market fears over rising trade tensions between the U.S. and China.

Boeing also reported on Tuesday 184 commercial airplane deliveries for its first quarter versus the Wall Street estimate of 173, helping to boost the shares.