Page 60 - MIN ECEM

Wednesday 19 July 2017 BUSINESS
A24

Johnson & Johnson ups expectations for the year

By LINDA A. JOHNSON ever, expects continued care law collapsed. ers understand concerns ed for only 10 percent of
AP Medical Writer pressure to hold down pric- Saying she could not vote about drug prices and the U.S. health care spending.
With a number of acquisi- es and a weaker market for to repeal Obamacare, need to ensure patients Steady price increases and
tions and new product ap- consumer health products. West Virginia Sen. Shelley can get needed medi- many new drugs with price
provals, Johnson & John- With the failure this week Moore Capito said that she cines, but that is only part tags exceeding $100,000
son looked beyond a dip in to win consensus for the “did not come to Washing- of the solution, Gorsky said. per year have pushed that
second-quarter profit and Republican health care ton to hurt people.” “Medicines represent only percentage higher.
raised its outlook for the plan, CEO Alex Gorsky said Wall Street hates uncertain- about 15 percent of health J&J reported higher spend-
year. The health care prod- Congress needs to create ty and on Tuesday, health- care spending” in the U.S., ing on marketing, produc-
ucts giant expects sales a more stable environment care stocks were among Gorsky said. tion and research Tues-
and profit growth to ac- for the industry. But several the biggest losers. Until this year, however, day, which pushed down
celerate this year, with mo- hours later, GOP efforts to Gorsky is in Washington those in the pharmaceuti- second-quarter profit 4.3
mentum carrying over into repeal much of President for meetings with U.S. and cal industry stressed that percent. That spending will
2018. The company, how- Barack Obama’s health global leaders. Drugmak- prescription drugs account- pay off, J&J said. q
Insurers slump as health care bill fails; tech stocks rise

several financial firms, in- Jones. The S&P 500 rose
cluding Goldman Sachs, 1.47 points, or 0.1 percent,
reported underwhelming to 2,460.61, just above the
second-quarter results. En- record it set Friday. The
ergy and industrial compa- Dow Jones industrial av-
nies also slipped. erage fell 54.99 points, or
While stocks flirted with 0.3 percent, to 21,574.73.
larger losses and most of Goldman Sachs was re-
the companies listed on sponsible for almost all of
the New York Stock Ex- that loss. The Nasdaq com-
change fell, the gains for posite climbed 29.87 points,
tech and consumer stocks or 0.5 percent, to 6,344.31
were enough to send the as tech companies like
Standard & Poor’s 500 in- Facebook and Alphabet,
dex and Nasdaq compos- the parent of Google, rose.
ite to new highs. After a plunge in June, the
Wall Street did not have a Nasdaq has surged over
big reaction to the Repub- the last two weeks.
lican health care defeat, The Russell 2000 index of
as it did when a related bill smaller-company stocks
failed in March. After four sank 3.99 points, or 0.3 per-
months of struggles over cent, to 1,427.61. That in-
health care, investors don’t dex closed at an all-time
Trader Luke Scanlon, center, moves through a crowd on the floor of the New York Stock Exchange. expect as much from Con- high Monday.Several ma-
U.S. stocks were divided Tuesday as health insurers declined after the failure of the latest Repub- gressional Republicans and jor banks reported strong
lican health care bill while a big jump in subscribers for Netflix sent technology and consumer-
focused companies higher. President Donald Trump on second-quarter results, but
(AP Photo/Richard Drew) other issues. that wasn’t enough to get
“Tax changes aren’t likely investors excited. Bank of
By MARLEY JAY clined after the failure consumer-focused com- to take place any time America and Goldman
AP Markets Writer of the latest Republican panies higher. soon and are likely to be Sachs both said their trad-
NEW YORK (AP) — U.S. health care bill while a big Stocks spent most of the smaller than they hoped,” ing businesses struggled, as
stocks were divided Tues- jump in subscribers for Net- day lower after the health said Kate Warne, an invest- the market has been calm
day as health insurers de- flix sent technology and care push stalled and ment strategist for Edward for months.q

Rising interest rates boost BofA’s profits

AP Business Writer lysts’ forecasts of 43 cents a into interest rates than its
NEW YORK (AP) — Consum- share. Like its competitors, rivals JPMorgan Chase,
er banking giant Bank of Bank of America benefited Citigroup and Goldman
America reported a 10 per- from rising interest rates. Sachs, who have much
cent rise in second-quarter The Federal Reserve has larger trading divisions and
profits on Tuesday as gains raised interest rates three are less exposed to short-
from higher interest rates times since December, term interest rates. Bank of
were more than enough to which has allowed banks America’s net interest in-
offset a drop in trading rev- like BofA to charge higher come increased 9 percent
enue. The Charlotte, North interest rates to borrowers in the quarter compared to
Carolina-based bank said when they take out loans. a year ago to $10.99 billion.
it earned $5.27 billion, or Because of its large con- The rate Bank of America
49 cents per share, com- sumer banking division, paid on deposits was un-
pared with $4.78 billion, or Bank of America’s fortunes, changed from a year ear-
43 cents per share, in the as the nation’s second- lier at 0.04 percent, which
same period a year ear- largest bank by assets, are allowed its profit margins to
lier. The results beat ana- often more directly tied grow.q