Page 24 - ARUBA TODAY
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Wednesday 19 april 2017 BUSINESS
                                     A24

                 Johnson & Johnson, Goldman sneeze and stocks catch a cold


            MARLEY JAY                                                                                                          points,  close  to  0.1  per-
            AP Markets Writer                                                                                                   cent, to 1,361.89.
            NEW  YORK  (AP)  —  U.S.                                                                                            On  Monday  stocks  made
            stocks  fell  Tuesday  after                                                                                        their  biggest  gain  in  six
            weak  first-quarter  reports                                                                                        weeks.  But  over  the  last
            from  Johnson  &  Johnson                                                                                           few  weeks  they’ve  mostly
            and  Goldman  Sachs  frus-                                                                                          drifted  lower  while  bond
            trated investors who hope                                                                                           yields  have  fallen  to  five-
            that  company  earnings                                                                                             month lows.
            are on the rise. Health care                                                                                        Johnson  &  Johnson  stum-
            companies lost the most.                                                                                            bled  after  investors  were
            Wall Street has high hopes                                                                                          disappointed with its sales.
            for   company     earnings                                                                                          Revenue  from  its  biggest-
            this  spring,  and  weak  re-                                                                                       selling drug, the Crohn’s dis-
            sults from the world’s larg-                                                                                        ease treatment Remicade,
            est  health  care  products                                                                                         fell  6  percent.  Meanwhile
            company  and  one  of  the                                                                                          growth for many consumer
            biggest financial firms had                                                                                         health  products  slowed,
            them  concerned.  John-                                                                                             and  payers  demanded
            son  &  Johnson  took  its                                                                                          bigger  rebates  on  treat-
            biggest  one-day  loss  in  a                                                                                       ments  for  cardiovascular
            year. Investors also looked                                                                                         ailments, diabetes, and pri-
            for  safety  after  the  British                                                                                    mary care products.
            government  called  for  a   Traders John Santiago, left, and Gordon Charlop confer on the floor of the New York Stock Ex-  The  maker  of  Tylenol  and
            surprise early election next   change.  U.S.  stocks  fell  Tuesday  after  weak  first-quarter  reports  from  Johnson  &  Johnson  and   Band-Aids lost $3.90, or 3.1
            month.  Bond  prices  and    Goldman Sachs frustrated investors.                                                    percent, to $121.82.
            the pound rose and Euro-                                                                    (AP Photo/Richard Drew)  Prescription  drug  distribu-
            pean  stock  indexes  tum-                                                                                          tor  Cardinal  Health  also
            bled.                        S&P  Global  Markets  Intel-  growth  is  likely  to  support  or 0.6 percent, to 20,523.28.   dropped  after  it  gave
            Kate Warne, an investment    ligence,  investors  expect  higher stock prices even in  Goldman  Sachs  was  re-     weak  profit  forecasts  for
            strategist for Edward Jones,   first-quarter  earnings  for  the absence of pro-growth  sponsible  for  most  of  that   this year and next as drug
            said  Goldman  Sachs  and    S&P 500 companies to rise  policies from the Trump ad-    loss.                        prices continue to fall. It will
            Johnson & Johnson had a      almost  10  percent  com-    ministration,” she said.     The Nasdaq composite fell    also pay $6.1 billion to buy
            dramatic  effect  on  stocks   pared  to  last  year.  That  The Standard & Poor’s 500  7.32 points, or 0.1 percent,   a group of businesses from
            because  investors  expect   would be the biggest jump  index  shed  6.82  points,  or  to 5,849.47. The Russell 2000   medical   device   maker
            a  very  strong  round  of   since 2014.                  0.3  percent,  to  2,342.19.  index  of  small-company    Medtronic. Cardinal Health
            company earnings reports     “The  reason  it’s  so  impor-  The  Dow  Jones  industrial  stocks  recovered  from  an   sank $9.44, or 11.5 percent,
            this  month.  According  to   tant  is  that  the  stronger  average lost 113.64 points,  early  loss  and  rose  0.71   to $72.39. q

                Bank of America profits jump, helped by interest rates



            KEN SWEET                    rates  as  well  as  a  strong  compared with $3.47 billion   “The  U.S.  economy  con-  ment  and  trading  divi-
            AP Business Writer           performance  in  its  invest-  in the same period a year   tinues  to  show  consumer  sions, which includes Merrill
            NEW YORK (AP) — Bank of  ment banking division.           earlier. On a per-share ba-  and    business   optimism,  Lynch,  also  had  a  strong
            America’s first quarter prof-  The  Charlotte,  North  Car-  sis, Bank of America earned   and our results reflect that,”  quarter,  in  line  with  the
            its grew nearly 40 percent,  olina-based      consumer  41 cents per share, beating    BofA’s CEO Brian Moynihan  bank’s competitors. Global
            the  bank  said  Tuesday,  banking  giant  reported  the  35  cents  that  analysts    said  in  a  prepared  state-  investment  banking  had
            helped  by  higher  interest  net income of $4.86 billion,  were looking for.          ment.                        net income of $1.73 billion
                                                                                                   Like  its  major  competitors,  compared with $1.09 billion
                                                                                                   JPMorgan     Chase,    Citi-  in the same period a year
                                                                                                   group  and  Wells  Fargo,  earlier.  Bank  of  America’s
                                                                                                   Bank  of  America  ben-      desks did much better than
                                                                                                   efited  from  higher  interest  Goldman  Sachs,  who  also
                                                                                                   rates.  The  Federal  Reserve  reported its results on Tues-
                                                                                                   raised  interest  rates  once  day which missed analysts’
                                                                                                   in December and again in  expectations.
                                                                                                   March, which has allowed  Revenue from trading rose
                                                                                                   the  big  retail  banks  to  to $3.9 billion from $3.4 bil-
                                                                                                   charge more for their loans.  lion. Overall, Bank of Amer-
                                                                                                   The bank said it had net in-  ica had revenue of $22.49
                                                                                                   terest income of $11.06 bil-  billion   compared   with
                                                                                                   lion, compared with $10.49  $20.79  billion  in  the  same
                                                                                                   billion in the same period a  period  a  year  earlier.  The
                                                                                                   year  earlier.  The  bank  ex-  bank  was  able  to  keep  its
                                                                                                   pects  that  if  interest  rates  expenses  flat  as  well,  at
                                                                                                   continue  to  move  higher,  $14.84 billion, which helped
                                                                                                   Bank of America could see  bolster  the  bank’s  bottom
                                                                                                   its net interest income grow  line.  Bank  of  America’s
                                                                                                   by $3.3 billion over the next  stock  fell  31  cents,  or  1.4
                                                                                                   12 months.                   percent,  to  $22.47  in  mid-
                                                                                                   Bank  of  America’s  invest-  day trading.q
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