A federal judge said General Motors does not need to pay $450 million to cover medical benefits for retirees.» Read More
Stocks are ready to spring higher on the opening as economic data, earnings and some merger news gets investor attention this morning. GM's better-than-expected earnings report is adding a positive tone.
GMAC, the finance company once controlled by General Motors, posted a 63% decline in second-quarter profit Monday, hurt by subprime mortgage losses at its home lending unit.Results, however, improved from the first quarter's after the company reduced lending risk.
Though stocks are down sharply from their highs of July 19, many analysts see the current volatility as a buying opportunity in select sectors.
Volatility is the life blood of the options markets, and investors have been getting plenty of it amid the implosion of the housing market and worries about tightening credit.
Chrysler Group is warning some of its dealers that it may try to shut them down if they don't improve their sales within six months, the Wall Street Journal reported on its Web site on Tuesday.
Several trends are very much in evidence today, including housing, corporate bonds and inflation.
There are furious behind the scenes negotiations to place $12 billion of debt to finance the Cerberus buyout of Chrysler.The deal is still not done and there is talk that the interest rate Cerberus will have to pay will be substantially higher than originally envisioned.
Today on Capitol Hill, GM will renew the auto industry's push to convince lawmakers that fuel efficient vehicles are on the way. Problem is, it may do little to slow down the CAFE express in congress. For years, the auto lobby was the strongest in D.C. and, for the most part, effectively limited Congress from passing aggressive fuel efficiency standards. But this time around, Congress, fueled by the impact of high gas prices, isn't going along for the ride.
LBO Troubles. Yesterday, it was Expedia drastically lowering its Dutch tender offer after Barry Diller said buyers of the bonds were trying to impose "unacceptable" terms (read: they wanted higher interest).Today, sources say that GM's Allison Transmission deal has been postponed. The deal involved selling $3.1 billion in bonds to finance the LBO of the company to Carlyle and Onex.
Wall Street is heading for a lower opening as some weak earnings and credit market jitters outweigh positive profit reports from companies like Pepsico and Lockheed-Martin. European markets are moving lower after overnight gains in Tokyo and Hong Kong shares.
The jokes came quickly as officials of Ford Motor stretched across a conference room table Monday to shake the hands of United Auto Workers negotiators and formally kick off contract talks.
A $3.1 billion debt sale to pay for the buyout of General Motors' Allison Transmission unit has been postponed, the Wall Street Journal said on its Web site on Monday, citing an unnamed source.
General Motors and Ford Motor began talks with the United Auto Workers union Monday, hoping to win sweeping concessions that would slash labor costs for the struggling auto industry.
Second-quarter earnings are mostly beating expectations so far, and much of that gain can be tied to growth overseas. For that reason, many analysts believe investors should be looking at big multinational companies with strong foreign business.
A union representing more than 2,000 of Delphi's hourly workers said Friday it has told the auto parts maker that it plans to terminate its contracts, a first step toward a possible strike in October.
Day one of the UAW contract talks kicked off with union leaders shaking hands with Chrysler executives at company headquarters in Auburn Hills, Michigan. Already I'm tiring of the news reports, talk shows, commentators and general public portraying these talks inaccurately. If I had a nickel for every time a talk show host blamed the rank and file guy at GM for all of that automakers problems, I'd be rich. So with that in mind, let's play fact or fiction.
Earnings misses by tech darling Google and Caterpillar, one of the Dow's power drivers, are adding to a wobbly opening on Wall Street. Citigroup though is a bright spot with a better than expected 18 percent profit gain and record revenues from investment banking and overseas business.
Chrysler Group and the United Auto Workers union on Friday mark the formal start of a summer of crucial contract negotiations under intense pressure to break the model of business as usual for Detroit.
Earnings remain the focus of traders going into the weekend, but analysts say the potential impact of rising crude oil and subprime troubles will also be on the minds of traders. Today is also an options expiration Friday.
General Motors narrowed the gap with top seller Toyota Motor in the first half of 2007 thanks to a solid second quarter, although demand continued to fall in its home North American market.