General Motors (GM), which reports earnings Wednesday before the bell, fell in after hours trading after it said it would take a huge $39 billion non-cash charge because of an accounting adjustment. The charge appears unrelated to health expenses or the U.A.W. deal, according to E.K. Riley analyst Robert Toomey.
It is “comforting” that the charge is non-cash, Toomey said, as it means there shouldn’t be an impact on the company’s cash flow and thus the stock shouldn’t take too much of a hit on the news when the markets open.