**GE Aerospace: Strong Earnings Overshadowed by Stock Retreat**

GE Aerospace recently surpassed its third-quarter earnings forecasts, and in light of robust demand, the company has increased its full-year profit outlook. Despite these encouraging figures, GE's stock has seen a decline. Tony Bancroft, portfolio manager for Gabelli Funds Aerospace and Defense ETF (GCAD), provides insights on this unexpected stock drop.

Bancroft attributes the sell-off to a mix of profit-taking and an overreaction from investors. He reassures that GE Aerospace still boasts a substantial backlog and continues to benefit from strong secular tailwinds, indicating a positive long-term performance outlook.

However, Bancroft mentions that production at GE Aerospace faces limitations due to Boeing's ongoing challenges and a current labor strike. These issues have resulted in capacity constraints, impacting GE's immediate momentum.

Despite these hurdles, Bancroft remains optimistic about GE Aerospace's future, praising the company's core strengths. Nevertheless, he points out that in the short term, much of GE's progress depends on Boeing. The results of Boeing's union vote on a new contract, expected on Wednesday, will be crucial in determining the near-term direction for both companies.