New York, January 11, 2026, 13:39 ET — The market has closed.
- The FAA has given the green light for Boeing’s 737 MAX 10 to advance to the next stage of flight testing, according to a source close to the program.
- Industrial Select Sector SPDR ETF (XLI) climbed roughly 1.1% on Friday, boosted by Boeing, one of its top holdings.
- Investors are on edge ahead of U.S. inflation figures and earnings reports, with new defense payout rules injecting additional uncertainty.
The Federal Aviation Administration has given the green light for Boeing’s largest 737 MAX model, the MAX 10, to advance to the second stage of flight testing, according to a source close to the program. Boeing and the FAA did not respond to requests for comment. An ongoing engine deicing problem has held up approvals, despite Boeing executives forecasting certification this year for both the MAX 7 and MAX 10. “It’s progress, but until the MAX 10 is certified, it’s not,” said Scott Hamilton, an aerospace analyst and principal at the Leeham Company. (Reuters)
This extends beyond Boeing. The Industrial Select Sector SPDR ETF (XLI), which tracks the industrial segment of the S&P 500, ended Friday at $161.93, gaining 1.10%. Boeing makes up roughly 3.61% of that fund, alongside GE Aerospace, Caterpillar, and RTX, according to Schwab data. Boeing shares last changed hands at $234.53, up about 3.1% from Thursday’s close. (State Street Global Advisors)
Industrials have jumped into the early-year rally, but the next couple of sessions could prove challenging. Tuesday brings the U.S. December CPI report, a crucial inflation indicator, while major banks like JPMorgan gear up to start earnings season. These events could swiftly shift expectations around rates and growth. “It just seems a little too quiet,” said Michael Arone, chief investment strategist at State Street Investment Management. (Reuters)
Friday saw cyclicals gain ground, lifting the broader market. The S&P 500 closed at a record high, buoyed by sectors like materials and industrials that have trailed tech in recent years. Investors remained cautious on tariffs and interest rate outlooks, but these groups drove the first full week’s gains, according to Reuters.
Policy uncertainty is creeping into the defense sector. After President Donald Trump signed an executive order linking share buybacks and dividends to weapons delivery schedules, defense contractors began consulting lawyers, three sources told Reuters. Morgan Stanley estimates that five major contractors paid out around $8 billion in dividends over the past year. Analyst Kristine Liwag called the administration’s approach a mix of “carrots and sticks.” (Reuters)
Lots could still derail the process. Boeing hasn’t secured full FAA certification for the MAX 10 yet, and any additional delays will squeeze production schedules and frustrate airlines on the waitlist. Meanwhile, Airbus continues to push its A321neo aggressively.
A hotter inflation print might push bond yields higher and put pressure on rate-sensitive industrial stocks, precisely when investors are shifting toward segments that have lagged recently.
The initial read will arrive once U.S. markets open on Monday. Then, all eyes shift to the CPI report on Jan. 13 — a crucial checkpoint for the rate-cut story driving recent gains in industrial stocks.
