Stocks in the news: General Motors, Bank of America, Sandisk
General Motors (GM) said its offer to exchange more than $27 billion in debt for equity has expired, and any accepted exchange offers will be returned to bondholders unconsummated. With bondholders rebelling against the offer, the company's board will meet to discuss the next step. According to the Wall Street Journal, GM's needs would mean that the government's stake will probably rise from 50 percent to as much as 70 percent. The Canadian government also will likely receive a small stake in the automaker. Shares opened over 12 percent lower.
Bank of America (BAC) says that it has raised almost $26 billion of the $33.9 billion it was told it needed following government stress tests. Shares opened about 3 percent higher.
Take-Two Interactive Software Inc (TTWO) said late Tuesday it swung to a second-quarter net loss of $10.1 million, or 13 cents a share, on a sharp drop in video-game sales stemming from a tough comparison. Results were far below analyst expectations and forecast disappointed. Shares were about 5 percent higher in the first minutes of trade.
Staples Inc. (SPLS) said Wednesday its profit fell 33 percent in the first quarter as higher operating expenses and one-time costs more than outweighed the benefit of a newly purchased supply chain business. Excluding one-time items, the company's profit 22 cents per share, a penny better than analyst estimates. Shares were about 2 percent lower in the first minutes of trade.
IBM (IBM) said Wednesday that it is increasing to up to $3 billion finances available to IT initiatives in key economic stimulus projects in Europe and Asia-Pacific.
Dollar Tree Inc. (DLTR) said Wednesday that its first-quarter profit increased 39 percent as same-store sales posted a 9.2 percent growth. Shares were about 2.5 percent higher in the first minutes of trade.
Sandisk Corp. (SNDK) shares jumped over 15 percent ahead of the bell after the company announced a new patent cross-licensing deal with Samsung.
AutoZone Inc. (AZO) reported a 9 percent rise in profit that beat analyst estimates as a slumping economy led more Americans to repair their existing cars instead of buying new ones. Shares were about 3.7 percent lower in the first minutes of trade.
Borders Group Inc (BGP) shares jumped 9 percent ahead of the bell after the bookseller reported late Tuesday a smaller-than-expected loss that beat Wall Street estimates as cost cuts offset a protracted slump in book sales.
US Airways (LCC) proposed to double the number of shares it's authorized to issue to ensure available capital for any unforeseen purposes. Shares were about 4 percent lower in the first minutes of trade.
Monsanto Co (MON) said on Wednesday that stronger-than-expected competition in the herbicide business would push fiscal-year results to the low end of its earnings forecast. Shares opened about 4 percent lower.
Big Lots Inc. (BIG) was downgraded at JPMorgan to Neutral from Overweight ahead of the company's scheduled earnings report on Thursday as the expected beat is likely priced in. Shares were about 5.5 percent lower in the first minutes of trade.
Citrix Systems Inc. (CTXS) was also downgraded at JPMorgan to Neutral from Overweight on valuation. While price jumped on speculation of a takeover by Cisco (CSCO), but that may not materialize. Shares were nearly 5 percent lower in the first minutes of trade.