Stocks in the news: Bank of America, Best Buy, General Motors

Updated

Bank of America's (BAC) credit rating was cut Moody's Investors Service on Wednesday Moody's cited an increasing risk that government intervention may be needed to bolster the bank's capital position. Moody's lowered BAC's senior debt rating down a notch to "A2" from "A1," but other ratings were lowered more with the preferred stock rating falling to "B3" from "Baa1" - a drop of eight notches, six steps below investment grade. BAC also is folding its Premier Banking unit into Merrill Lynch, laying off several hundred workers. BAC shares gained some 3.3 percent in pre-market trade.

General Motors Corp. (GM) and Chrysler may get more loans approved. The Obama administration's auto task force will likely recommend more aid for struggling U.S. automakers, a senior senator said on Wednesday, but with strings. GM is also reported to have persuaded more than 6,000 UAW members to take buyouts, meeting internal company goals. GM shares gained over 11 percent in pre-market trade.

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