Stocks in the news: Goldman Sachs, Johnson & Johnson, General Motors
Johnson & Johnson (JNJ) said its quarterly earnings fell, hurt by some generic competition and the strong dollar, but it still managed to beat expectations due to lower costs. The diversified health-care company earned $3.51 billion, or $1.26 per share, in the first quarter. Analysts on average expected $1.22 per share, according to Reuters Estimates. J&J reaffirmed its 2009 profit forecast. JNJ shares were up 1.4 percent in pre-market trade.
General Motors Corp. (GM) -- The U.S. government is considering swapping some of the $13.4 billion GM owes it for an equity stake in a stripped-down version of the carmaker, Bloomberg reported its sources said. The swap would be part of an effort to cut GM's debt as the carmaker approaches a June 1 deadline to come up with a plan to become viable. GM shares were up 4.7 percent before the bell after tumbling over 16 percent Monday on bankruptcy concerns.
Intel (INTC) will be reporting earnings after the close today, kicking off tech's earning season. Here is DailyFinance's preview.
Philips Electronics (PHG) on Tuesday kicked off the European earnings season on a downbeat note. Europe's largest consumer-electronics company swung to a first-quarter loss, which was double analyst estimates, as demand for its lighting and consumer products waned. While it said it sees no improvement this quarter it also said it plans to speed up restructuring measures and shares gained 4.7 percent in pre-market trade.
Talbots Inc. (TLB) said Monday its fiscal fourth-quarter losses more than doubled to $367 million, missing Wall Street expectations by a wide margin. Excluding a one-time charge Talbots' adjusted loss from continuing operations came to $1.17 per share, much higher than the 65 cents loss analysts polled by Thomson Reuters had expected. Shares declined nearly 28 percent in pre-market trade.
PepsiCo Inc. (PEP) sued rival Coca-Cola Co. (KO) on Monday over ads for a new version of Coca-Cola's sports drink Powerade, saying the campaign makes false claims that could hurt its Gatorade brand.
Fannie Mae (FNM) CEO Herb Allison is expected may be named by the administration to head the government's $700 billion Troubled Asset Relief Program, according to the Wall Street Journal.
- Intuitive Surgical (ISRG) was upgraded by Lazard from Hold to Buy.
- Oppenhiemer downgraded the following oil companies from Outperform to Perform: Exxon Mobil (XOM), BP (BP), Chevron (CVX) and ConocoPhillips (COP).
- Macy's (M) was downgraded at Soleil from Buy to Hold.