Financial News Update: Rising Profits, Business Jets Demand, J&J Forecast, Tesla Recall, and More

2023-10-17 19:54:14

(Illustration: Camille Charbonneau)

THE ESSENTIAL NEWS

• BofA’s profit rises, driven by higher interest income and a surprise gain from the investment bank. Bank of America’s profit rose in the third quarter as it followed rivals’ lead in increasing its earnings on interest paid by its customers, while its investment bank and merchant bank performed better provided that.

• Airplane manufacturers are banking on continued demand for business jets, but Wall Street is wary. Plane makers are banking on continued demand for business jets as the world’s largest business aviation show begins, but analysts are cautious about the appetite for private flights due to risks growing macroeconomic conditions and the slowing down of the boom induced by the pandemic.

• J&J raises its annual profit forecast due to strong demand for its best-selling anti-inflammatory. Johnson & Johnson raised its 2023 profit forecast, driven by continued demand for its top-selling drug Stelara, and reported a US$21 billion gain from the spinoff of its consumer health unit .

• Tesla will recall nearly 55,000 Model X vehicles, according to the automobile regulator. The U.S. auto regulator said Tuesday that Tesla will recall 54,676 Model

• Choice Hotels offers to buy Wyndham for US$7.8 billion. Choice Hotels has proposed to acquire Wyndham Hotels and Resorts for approximately US$7.8 billion in a cash and stock transaction that would create a U.S. budget hotel giant.

TRENDS BEFORE OPENING

THE major Canadian stock indices follow the downward trend in American stock indices, with investors preparing for a series of company results and economic indicators. THE European stocks fell following the publication of mediocre results, counterbalancing the impetus given by stocks in the health and energy sectors. The average of stocks Japanese Nikkei rises, fueled by a rise in tech stocks. THE oil price are climbing, driven higher by hopes of an easing of sanctions against Venezuela by the United States, even as Washington redoubles its efforts to prevent an escalation of the war between Israel and Hamas. THE American dollar increases and the gold price remain stable. Canadian inflation data is expected later today.