Boeing Seals $6.5 Billion Order, and Things Could Get Worse for General Motors

The Dow Jones Industrial Average (DJINDICES: ^DJI  ) is searching for a direction today, having moved less than 0.1% as of 2:45 p.m. EDT. Private-sector payrolls in America increased by 191,000 in March, which was slightly short of expectations but still an improvement from February's level.

"The job market is coming out from its deep winter slumber," said Mark Zandi of Moody's Analytics. "Job gains are consistent with the pace prior to the brutal winter."

Investors will be looking for Friday's Bureau of Labor Statistics' March jobs report to confirm that conditions in the labor market have improved after the harsh winter weather subsided. With that in mind, here are some major companies making headlines today.

The 737 MAX 8 and MAX 9. Source: Boeing.

Aviation juggernaut Boeing (NYSE: BA  ) and Air Canada finalized an order yesterday for 33 737 MAX 8s and 28 737 MAX 9s. The order also has 18 options and 30 rights to purchase additional 737 MAX aircraft, according to Boeing. At list prices, Air Canada's order is valued at $6.5 billion.

Boeing's 737 MAX is designed to improve fleet fuel efficiency, which continues to grow as a percentage of airline costs. The 737 MAX is also designed to reduce carbon emissions by 14% and reduce operational noise footprint by 40% compared to today's aircraft, according to Boeing.

"Projected fuel and maintenance cost improvements of more than 20 percent per seat will generate an estimated CASM reduction of approximately 10 percent compared to our existing narrow-body fleet," said Calin Rovinescu, president and CEO of Air Canada. "In addition, the 737 MAX offers improvements to the environment, making this the best choice for Air Canada."

Outside of the Dow, the flurry of bad press for America's largest automaker, General Motors (NYSE: GM  ) , could get worse in the coming weeks after senators hinted at a cover-up regarding one of its recent recalls.

"I think we need to hear from people who had the key positions at GM who perhaps had knowledge of this," said Sen. Dan Coats (R-Ind.) during a hearing of the Senate Commerce Committee's consumer protection panel, according to Automotive News.

Earlier this week General Motors announced another recall of more than 1.3 million vehicles that can apparently experience a sudden loss of electric power. If you haven't been keeping track of this recall debacle over the past six weeks, that brings the total to eight separate recalls covering nearly 6 million vehicles.

This gives current and potential GM investors plenty to chew on before the company announces its first-quarter results. GM originally expected to add a charge of $300 million to its first-quarter results, but that has now ballooned to about $750 million. That charge only accounts for recall-associated charges and doesn't include possible lawsuits or the damage done to the company's already battered brand image. 

3 Stocks Poised to Be Multibaggers
The one sure way to get wealthy is to invest in a groundbreaking company that goes on to dominate a multibillion-dollar industry. Our analysts have found multibagger stocks time and again. And now they think they've done it again with three stock picks that they believe could generate the same type of phenomenal returns. They've revealed these picks in a new free report that you can download instantly by clicking here now.

Read/Post Comments (0) | Recommend This Article (3)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2900685, ~/Articles/ArticleHandler.aspx, 9/2/2015 9:14:23 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Daniel Miller

As a Motley Fool Industrial Specialist, I use my marketing and business background in the automotive industry to evaluate major automakers and other large industrial corporations. Follow me on twitter for tweets about stocks, cars, sports, and anything I find amusing.

Today's Market

updated 11 hours ago Sponsored by:
DOW 16,058.35 -469.68 0.00%
S&P 500 1,913.85 -58.33 0.00%
NASD 4,636.11 0.00 0.00%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/1/2015 4:35 PM
^DJI $16058.35 Down -469.68 +0.00%
BA $127.44 Down -3.24 +0.00%
The Boeing Company CAPS Rating: ****
GM $28.64 Down -0.80 +0.00%
General Motors CAPS Rating: ***