BREAKING: GM To Take $39 Billion Non-Cash Charge


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.

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Trader disclosure: On Nov. 6, 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders: Jeff Macke owns (YHOO), (INTC), (ATVI); Pete Najarian owns (CY), (BHP), (CSCO), is short (MBI), owns options in (BHI), (BIDU), (C), (FMCN), (GOOG), (HAL), (YHOO); Finerman’s firm owns Russell 2000 Puts, S&P 500 Puts, (CROX) options, (MSFT) options, (LEH) puts, is short (MER) and owns (MER) puts, (TSO), (TWX), (YHOO), is short (MDY), (IJR); Finerman’s firm and Finerman own (GS); Robert Toomey owns (GM)