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

If you've been following General Motors' recall bonanza over the past six weeks, it appears things could get even worse.

Apr 2, 2014 at 3:00PM
Longview

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.

Acn

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.

Daniel Miller owns shares of General Motors. The Motley Fool recommends General Motors. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

1 Key Step to Get Rich

Our mission at The Motley Fool is to help the world invest better. Whether that’s helping people overcome their fear of stocks all the way to offering clear and successful guidance on complicated-sounding options trades, we can help.

Feb 1, 2016 at 4:54PM

To be perfectly clear, this is not a get-rich action that my Foolish colleagues and I came up with. But we wouldn't argue with the approach.

A 2015 Business Insider article titled, "11 websites to bookmark if you want to get rich" rated The Motley Fool as the #1 place online to get smarter about investing.

"The Motley Fool aims to build a strong investment community, which it does by providing a variety of resources: the website, books, a newspaper column, a radio [show], and [newsletters]," wrote (the clearly insightful and talented) money reporter Kathleen Elkins. "This site has something for every type of investor, from basic lessons for beginners to investing commentary on mutual funds, stock sectors, and value for the more advanced."

Our mission at The Motley Fool is to help the world invest better, so it's nice to receive that kind of recognition. It lets us know we're doing our job.

Whether that's helping the entirely uninitiated overcome their fear of stocks all the way to offering clear and successful guidance on complicated-sounding options trades, we want to provide our readers with a boost to the next step on their journey to financial independence.

Articles and beyond

As Business Insider wrote, there are a number of resources available from the Fool for investors of all levels and styles.

In addition to the dozens of free articles we publish every day on our website, I want to highlight two must-see spots in your tour of fool.com.

For the beginning investor

Investing can seem like a Big Deal to those who have yet to buy their first stock. Many investment professionals try to infuse the conversation with jargon in order to deter individual investors from tackling it on their own (and to justify their often sky-high fees).

But the individual investor can beat the market. The real secret to investing is that it doesn't take tons of money, endless hours, or super-secret formulas that only experts possess.

That's why we created a best-selling guide that walks investors-to-be through everything they need to know to get started. And because we're so dedicated to our mission, we've made that available for free.

If you're just starting out (or want to help out someone who is), go to www.fool.com/beginners, drop in your email address, and you'll be able to instantly access the quick-read guide ... for free.

For the listener

Whether it's on the stationary exercise bike or during my daily commute, I spend a lot of time going nowhere. But I've found a way to make that time benefit me.

The Motley Fool offers five podcasts that I refer to as "binge-worthy financial information."

Motley Fool Money features a team of our analysts discussing the week's top business and investing stories, interviews, and an inside look at the stocks on our radar. It's also featured on several dozen radio stations across the country.

The hosts of Motley Fool Answers challenge the conventional wisdom on life's biggest financial issues to reveal what you really need to know to make smart money moves.

David Gardner, co-founder of The Motley Fool, is among the most respected and trusted sources on investing. And he's the host of Rule Breaker Investing, in which he shares his insights into today's most innovative and disruptive companies ... and how to profit from them.

Market Foolery is our daily look at stocks in the news, as well as the top business and investing stories.

And Industry Focus offers a deeper dive into a specific industry and the stories making headlines. Healthcare, technology, energy, consumer goods, and other industries take turns in the spotlight.

They're all informative, entertaining, and eminently listenable ... and I don't say that simply because the hosts all sit within a Nerf-gun shot of my desk. Rule Breaker Investing and Answers contain timeless advice, so you might want to go back to the beginning with those. The other three take their cues from the market, so you'll want to listen to the most recent first. All are available at www.fool.com/podcasts.

But wait, there's more

The book and the podcasts – both free ... both awesome – also come with an ongoing benefit. If you download the book, or if you enter your email address in the magical box at the podcasts page, you'll get ongoing market coverage sent straight to your inbox.

Investor Insights is valuable and enjoyable coverage of everything from macroeconomic events to investing strategies to our analyst's travels around the world to find the next big thing. Also free.

Get the book. Listen to a podcast. Sign up for Investor Insights. I'm not saying that any of those things will make you rich ... but Business Insider seems to think so.


Compare Brokers