Stocks in the news: General Motors, Chevron, AIG
General Motors (GMGMQ) today might exit Chapter 11 protection after just 40 days in bankruptcy court and closing the sale of its good assest. GM is due to hold a press conference at 9 a.m. Eastern. The new GM will emerge cleansed of massive debt and contracts and will be 61 percent owned by the U.S. government. Many still question its ability to operate in this tough environment and doubt whether it will be able to return the taxpayers' money any time soon.
Chevron (CVX) warned Thursday that second-quarter earnings would be hit by a sharp decline in U.S. refining margins and that any benefits from higher oil prices were largely offset by a weaker dollar. Shares declined over 2 percent.American International Group (AIG) is seeking more bonus money for its executives. It wants an extra $2.4 million in executive bonuses, according to reports.
Infosys Technologies (INFY) reported a 17 percent rise in fiscal first-quarter profit, which was better than expected, but it forecast annual earnings to fall by as much as 10 percent due to difficult business conditions and a strengthened rupee. Shares gained over 3 percent in pre-market trade.
UBS (UBS) found itself caught between the U.S. and the Swiss governments. According to an internal memo, Oswald J. Grübel, the chief executive of UBS, said that turning over the names "would require UBS to violate Swiss criminal law, and we simply cannot comply." It's asking for a resolution.
Dell Inc. (DELL) was upgraded to Conviction Buy at Goldman Sachs, which upgraded the U.S. hardware sector to Attractive from Neutral, on expectations of a potential upside in the stocks. Other calls included cutting Western Digital Corp (WDC) and IBM (IBM) to Neutral from Buy, based on valuation and upping Hewlett-Packard Co.'s (HPQ) to $47 from $39, upgrading Seagate Technology (STX) to Buy from Neutral and raising the price target on Apple Inc (AAPL) to $160 from $145.
Yahoo! (YHOO) was upgraded by analysts at Thomas Weisel Partners to Market Weight from Underweight, citing valuation and their increasing confidence in new management.