Earnings warnings begin in earnest

Late yesterday, two of the largest American companies, Boeing (BA) and Chevron (CVX) warned on Q1 results. Almost anyone could have guessed Boeing is having a hard time. Global air travel is off sharply due to the recession and a number of airlines are expected to lose money in the first part of this year.

The airplane manufacturing and defense contractor said monthly production of the 777 will decline from seven to five airplanes per month beginning in June 2010. The 777 Dreamliner is Boeing's new flagship and has just started its delivery schedule to customers. Boeing's shares, which trade at $40, down by over half from their 52-week high, are likely to go lower.