Boeing (BA) has announced it is investigating a quality issue on its undelivered 787 Dreamliner planes.

Yahoo Finance's Seana Smith and Madison Mills break down the news and other quality issues the company currently faces.

For more expert insight and the latest market action, click here to watch this full episode of Catalysts.

This post was written by Melanie Riehl

Video Transcript

Take a look at some trending tickers that we are watching on this Friday morning starting with shares of Boeing moving to the downside down just over 1.5% after the company announcing it was investigating a quality problem with its undelivered 787 Dreamliner planes.

Boeing said it's quote, taking the time necessary to ensure all airplanes meet delivery standards prior to delivery.

Now, as you know, this is coming amid a slew of issues for the, the FAA is also probing probing the 780 seven's quality defect.

According to the agency, the FAA has several investigations ongoing into this company right now.

And the FAA Chief Michael Whitaker saying at a senate hearing that this is just again, one of several of those investigations see that you can expect to see an increase in reports when you have a place for employees to kind of speak up.

And that's exactly what we are seeing when it comes to Boeing.

But as we were just talking about, this is an issue with the fastener and that is not the same manufacturing issue that we have heard previously from Boeing.

So it indicates that there are more problems potentially under the hood that we're gonna continue to be hearing about.

Yeah, this is just the latest in a of uh many issues that Boeing is facing and we're seeing the nerves this year of investors.

When we do get news like this, you're looking at shares off just around 1.5%.

But when it comes to this issue, let's put it in context for everyone out there because the company here discovering hundreds of fasteners have been incorrectly installed on the fuselages of some of those undelivered jets.

So I read that line and I said, what the heck is our fasteners and what does this mean?

And how significant could that problem be and taking that just a step further.

So there were some issues with the tightening here of these fasteners and the Boeing plan of more than 900 fasteners per plane split equally between both sides of the jets, mid body.

So number of these fasteners per plane, there are some issues about whether or not they were tightened correctly.

So this could be a huge issue here for Boeing, at least here in the near term.

Again, these are four planes that have not yet been delivered.

So Boeing now investigating this here, it's a quality problem.

The latest quality problem that Boeing now faces here at this time with those undelivered 787