Stocks in the News: General Motors, IBM, Southwest Airlines
General Motors Corp. (GM) Chief Executive Fritz Henderson, who recently replaced the ousted Rick Wagoner, said on NBC's "Meet The Press" that he did not think that it was inevitable that North America's largest automaker would go bankrupt.
In a separate appearance on CNN's "State of the Union," Henderson said the company would cut more jobs and shutter more plants as it works to meet the White House's 60-day deadline to present a plan to prove its viability. U.S. auto sales have fallen for the past 17 months.
Bank stocks slid after noted analyst Mike Mayo threw cold water on the recent rally arguing that loan losses will exceed levels seen during the Great Depression. Treasury Secretary Timothy Geithner told CBS's "Face The Nation" that the government would not hesitate to replace bank CEOs if needed.
In other news, International Business Machines Corp. (IBM) withdrew its $7 billion offer for Sun Microsystems Inc. (JAVA) after the two companies could not agree on a price. Sun rejected a lower offer from the Armonk, New York-based tech giant on Sunday, according to the New York Times. Investors expect Sun's troubles to continue. Shares of Sun are tanking in pre-market trading, down 22 percent.
Airlines continue to raise cash. Southwest Airlines Co. (LUV) said Friday that it sold and leased back three planes to raise $105 million. Meanwhile, AMR Corp.'s (AMR) American Airlines was reportedly discussing raising money by selling frequent-flier miles, according to the Associated Press.
The unofficial start of earnings season kicks off tomorrow when Alcoa Inc. reports first quarter results. Bloomberg argues that the results "may show the first signs of recovery in the second quarter after profits at S&P 500 Index members fell 37 percent in the first three months of 2009."
Then again, it may not.