3 Stocks to Watch on Tuesday: Boeing Co (BA), McDonald’s Corporation (MCD) and Novartis AG (ADR) (NVS)

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No investing took place yesterday due to Labor Day, which saw gasoline prices decline in the country. U.S. crude prices were mixed as several refineries were back in action as Hurricane Harvey exited most of the affected regions in Texas.

3 Stocks to Watch on Tuesday: Boeing Co (BA), McDonald's Corporation (MCD) and Novartis AG (ADR) (NVS)Labor Day weekend was busy for certain companies and their employees, as Boeing Co (NYSE:BA), McDonald’s Corporation (NYSE:MCD) and Novartis AG (ADR) (NYSE:NVS) all made Monday’s headlines.

Here’s what you should know:

Boeing Co (BA)

Boeing stock could be on the rise today on the World Trade Organization’s (WTO) ruling regarding tax break complaints.

The company filed an appeal on a previous ruling that claimed Boeing received state aid to build its 777X aircraft. The WTO reversed the decision and ruled in favor of Boeing.

The complaint was filed by rival Airbus, and a spokesperson for the company said the battle is “far from over” as other aircraft makers have filed their own complaints against Boeing.

The original ruling from the WTO proclaimed that Boeing received tax breaks for manufacturing purposes at its Washington state facility. Airbus said the tax breaks amounted to at least $9 billion.

Boeing responded by claiming its tax breaks did not surpass the $1-billion mark. The WTO’s ruling said the tax breaks did not explicitly prevent free trade, eliminating them from the “prohibited” subsidies category.

“The EU and Airbus, meanwhile, continue to be in flagrant breach of WTO rulings and must eliminate the massive illegal subsidies the WTO said a full year ago had not been addressed, or risk US sanctions against European exports,” said J. Michael Luttig, Boeing general counsel.

BA shares are up 54.4% year-to-date.

McDonald’s Corporation (MCD)

McDonald’s continues to face opposition from its workers who claim the company does not pay them well enough.

A number of strikes took place around the U.S. and the UK on Labor Day, seeking a pay raise for all McDonald’s employees. Workers are asking for a minimum of $15 per hour in the U.S. and at least £10 ($12.92) per hour in the UK.

Strikes have taken place across the states, including in Kansas City where one worker collapsed in April, bled behind the counter, and nearly died. Kenya Banks is rallying support from coworkers seeking the same wage hike she desires as part of the “Fight for $15” initiative.

Banks got a large medical bill for her treatments that she couldn’t afford because McDonald’s offers no paid sick time despite her critical condition. She had to resume her job two weeks after the incident to make ends meet, even though her doctor told her she should take six weeks off.

In the UK, McDonald’s workers have been drumming up support from Labour Party leader Jeremy Corbyn, who backs their decision to end the company’s zero-hours contracts — which protect companies from having to offer a minimum amount of hours to its employees — and raise wages.

“For far too long, workers in fast food restaurants such as McDonald’s have had to deal with poor working conditions, drastic cuts to employee hours, and even bullying in the workplace — viewed by many as a punishment for joining a union,” said Ian Hodson, national president of the Bakers, Food and Allied Workers Union (BFAWU).

MCD shares are up 4% over the last three months.

Novartis AG (ADR) (NVS)

Novartis promoted one of its key executives earlier this week.

With CEO Joe Jimenez stepping down on Feb. 1, 2018, the drugmaker has named drug development chief Vas Narasimhan as the new company boss. Jimenez served the company as CEO for eight years.

The pharmaceutical giant’s profit has been sliding as some of its core treatments have lost steam recently, including blood cancer drug Gleevec, which lost patent protection.

Sales have also been down for Novartis’ ophthalmology division Alcon, which failed to meet the company’s projections. Generic segment Sandoz is also a question mark for the drugmaker as it has faced pressure to reduce its drugs’ prices.

The future could hold much of the same for Novartis as its multiple sclerosis and breast cancer treatments will also see their patents expire in 2019 and 2020 respectively.

New heart failure medication Entresto has also lagged in the sales department.

Nevertheless, there is optimism in the air, as Novartis is expected to post flat sales growth, which is an improvement over its 2% sales loss in 2016 and a 5% drop the year before that.

A strong balance sheet, reasonable debt and strong stock performance suggests that the pharmaceutical company could be well-positioned for the future with a scientist at the helm.

NVS stock is up 15.1% YTD.

As of this writing, Karl Utermohlen did not hold a position in any of the aforementioned securities.


Article printed from InvestorPlace Media, https://investorplace.com/2017/09/stocks-watch-tuesday-boeing-co-ba-mcdonalds-corporation-mcd-novartis-ag-adr-nvs/.

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