Stocks in the news: AIG, General Motors, Sears Holdings
The following post rounds up the companies making headlines today:
American International Group (AIG) Chairman and CEO Edward Liddy announced late Thursday that he plans to depart the company once the insurer's board of directors finds a replacement. It also proposed a 1-for-20 reverse stock split.
General Motors (GM) closed a deal late Thursday with the UAW, so now its future remains in the hands of bondholders with Chapter 11 bankruptcy protection looming around the corner as early as the end of next week. GM has $27 billion in unsecured debt. Meanwhile, GMAC Financial Services will receive $7.5 billion in additional government aid to keep loans flowing to would-be car buyers. GM may also get a fourth offer for its Opel and Vauxhall operations in Europe after a Chinese carmaker submitted an expression of interest yesterday, according to Bloomberg sources. GM shares rose above $2 in pre-market trade.
Sears Holdings (SHLD) reported a completely surprising first-quarter profit on cost cuts and tighter inventory controls. However, sales fell more than 9 percent and same-store sales 11.7 percent. Stock surged 25 percent ahead of the bell.
Cougar Biotech (CGRB) jumped 15 percent in pre-market trade after Johnson & Johnson (JNJ) offered $1 billion in cash for the firm. J&J shares were also slightly higher in pre-market action.
Salesforce.com (CRM) said its fiscal first-quarter profit rose sharply, topping Wall Street estimates, as it pulled in a record number of new customers and held costs in check. CRM, however, cut its annual sales outlook and shares slumped 8 percent before the bell.
Apple Inc. (AAPL) was in focus Thursday as Piper Jaffray said there's increasing evidence to suggest Apple next year will introduce a tablet-based device that will sell for $700 or less rather than a netbook.
Foot Locker Inc. (FL) said its first-quarter net income rose sharply compared to the same period last year even as revenue fell 7.1 percent. FL shares gained over 4 percent ahead of the bell.