Two Dow Jones blue chips are stealing the spotlight Tuesday afternoon as money rotates out of AI-heavy growth names. Boeing (NYSE:BA | BA Price Prediction) shares are up 6% to $223.18, while Coca-Cola (NYSE:KO) shares are up 4% to $87.72, powering the Dow while the NASDAQ 100 slips.
The SPDR Dow Jones Industrial Average ETF (NYSEARCA:DIA) is tracking the Dow and is up 1.3%, with the S&P 500 up 0.49% and the NASDAQ 100 down 0.48%. Meanwhile, Coca-Cola stock is on pace for its best day since February 2009.
Coca-Cola: The Defensive Anchor
Coca-Cola posted an earnings beat and lifted its outlook. The company’s adjusted EPS came in at $0.97 versus a $0.9323 consensus, with revenue of $13.38 billion, up 6.7% year over year (YoY). That’s a fifth straight quarterly beat.
Volume was the standout. Global unit case volume rose 5% against a 2.5% expectation, Coca-Cola Zero Sugar volume grew 16%, and Diet Coke rose 7%. CFO John Murphy declared that Diet Coke is “having its moment.”
Coca-Cola’s management raised the company’s full-year guidance to organic revenue growth of 5% and comparable EPS growth of 9% to 10%. The one caveat: the company flagged higher 2027 input costs tied to fuel and aluminum.
Boeing: Cash Beat Trumps a Wider Loss
Boeing’s story is a cyclical turnaround. The company’s Q2 2026 revenue hit $24.6 billion, up 8% YoY and above the $24.26 billion consensus. Furthermore, Boeing delivered 171 commercial jets, up from 150.
The bigger surprise was cash flow. Boeing posted adjusted free cash flow of $631 million versus an expected outflow of about $331 million, with operating cash flow of $1.4 billion. Management still targets $1 billion to $3 billion of free cash flow this year.
The bottom line was less encouraging, though. Boeing reported an adjusted loss of $0.76 per share, wider than the $0.28 loss expected, on a $280 million charge tied to the Air Force One VC-25B program. CEO Kelly Ortberg stated, “I’m very pleased with the progress our team is making as we execute our plan.”
Rotation Out of AI Into Dow Defensives
Other Dow defensive names are also riding the same wave, with McDonald’s (NYSE:MCD), Verizon Communications (NYSE:VZ), Procter & Gamble (NYSE:PG), and Johnson & Johnson (NYSE:JNJ) shares all trading higher alongside Boeing and Coca-Cola as investors rotate into old-economy cash generators.
Coca-Cola stock is now up 25% year to date (YTD), with the AI-heavy NASDAQ 100 lagging as valuation-stretched chip and AI names give back gains. The setup favors old-economy cash generators. Coca-Cola stock trades at a 26.44x P/E ratio with a $88.3 consensus analyst price target, while Boeing stock’s analyst target sits at $270.08.
The bear case still matters. Boeing hasn’t produced consistent GAAP profits, defense charges keep hitting, and Coca-Cola’s Q3 has tougher volume comps ahead. Investors should consider keeping their position sizes modest on both, treating Coca-Cola as the income anchor and Boeing as the higher-beta turnaround prospect.
What to Watch
Investors can watch for whether the Dow’s outperformance holds into the close, and whether AI names find a bid on any afternoon dip. Coca-Cola’s earnings call at 8:30 a.m. ET already set the tone. Boeing’s delivery cadence and 737 ramp-up toward 47 per month could drive the next move in BA stock.
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