Stocks in the news: General Motors, Apple, General Electric
General Motors' (GM) June 1 deadline for restructuring is approaching, and with it the fate of the company, as without changes the government said it will have to file for bankruptcy protection by next Monday. This week is expected to bring more plant closures, employee concessions and other last-minute efforts. UAW officials will gather Tuesday in Detroit, bondholders of the automaker also face a Tuesday deadline to decide whether to accept a debt-for-equity deal. The CAW approved some more concession on Monday. Meanwhile, bidders make final push for GM's Opel. GM shares traded over 6 percent lower ahead of the bell.
Apple (AAPL) was upgraded at Morgan Stanley to Overweight from Equal Weight and the target price upped from $105 to $180. Morgan Stanly said the iPhone will drive the company's earnings growth over the next two years. AAPL shares gained over 2 percent in pre-market trade.
Take-Two Interactive Software Inc. (TTWO) is forecast to post a loss of 13 cents a share in the fiscal second quarter, according to Thomson Reuters.
JPMorgan Chase & Co. (JPM) stands to reap a $29 billion windfall thanks to an accounting rule that lets the second-biggest U.S. bank transform bad loans it purchased from Washington Mutual Inc. into income. Other banks could see similar profits of so-called accretable yield, the difference between the value of the loans on the banks' balance sheets and the cash flow they're expected to produce.
Target Corp. (TGT) -- Pershing Square Capital Management said Ackman, who is locked in a heated proxy contest with the retailer, would maintain his personal investment in the company for five years or for the duration of his directorship, if elected to the company's board.
Rio Tinto (RTP) has agreed a 33 percent cut in contract fine iron ore prices with Japan's Nippon Steel for the current shipping year, Rio said in a statement on Tuesday. The agreement with Nippon Steel is the first between a major miner and a steel mill. Shares declined about 2 percent before the bell.
General Electric's (GE) CEO Immelt said growth will be "harder to come by" in coming years given that even when the global economy emerges from recession it may grow at a slower pace. GE would shift more resources to China and other emerging markets set to play a larger role in driving economic growth.