Movers: GM, Ford, 3M, Chesapeake Energy, Apple
Shares of General Motors (GM) and Ford (F) rise on hopes that an auto bailout could come today. Reuters reports that the White House and congressional Democrats are expected to finalize a $15 billion proposal to bail out automakers, a plan that will carry stiff conditions to sell the package to lawmakers. Also, on CNBC UAW President Gettelfinger said UAW ready to "go to the table" to negotiate; disagrees with idea of prepackaged bankruptcy for GM, and that it's premature to discuss Chrysler-GM merger.
3M Co. (MMM) says as a result of economic realities such as expected 10% decline in fouth quarter organic volume, negative effects of currency, cuts $5.40-$5.48 2008 EPS guidance to $5.10-$5.15 (excluding items). Says forex impacts are expected to reduce 2009 sales 6%-7%, sees $4.50-$4.95 EPS.
Chesapeake Energy (CHK) says it has further reduced capex plans for 2009 and 2010 to achieve cash neutral budget. To build up to $4 billion in additional cash resources in 2009 and 2010 thru further asset monetizations. Additionally, CHK continues to have talks with multiple parties for either minority investment in its midstream ops or purchase of portion of its existing midstream assets, and expects to complete midstream deal in the first quarter 2009. To amend acquisition shelf registration statement to reduce number shares to be registered from 50 million to 25 million.
Apple (AAPL) rises 5.72 to 99.72 after CNBC reports that AAPL confirmed that a version of its popular iPhone will be selling soon through Wal-Mart (WMT), but the technology company denied reports that the price for the device will be as low as $99.
Dow Chemical (DOW) announces series of actions to accelerate its transformational strategy in light of current economic realities, including elimination of about 5,000 jobs (11% of global workforce), closure of 20 facilities and divestiture of several non-strategic businesses. Also, reflecting poor current market conditions, Dow will temporarily idle about 180 plants and significantly reduce its contractor workforce worldwide by about 6,000 as predicated by reduced operations. S&P keeps sell.
NYSE Euronext (NYX) says November U.S. cash products average daily volume increased 26%, NYSE listed matched volume increased 14%, NYSE Arca and NYSE Alternext US listed matched volume increased 174%, Nasdaq listed matched volume decreased 4%, exchange-traded funds matched volume increased 94%.
SL Green Realty (SLG) forecasts $2.25-$5.50 2009 funds from operations per share. Separately, SLG and Gramercy Capital announce an agreement to sell their interests in a three-building, 670,000-square-foot office property in Bridgewater, N.J. The $230 million deal includes the assumption of an existing $190 million mortgage and is expected to close within the next 60 days. The transaction will result in a capitalization rate of 6.9% to the seller. S&P raises target, maintains hold.
United States Steel (X) rises 7.03 to 35.79 after Goldman reportedly upgrades X and Olympic Steel (ZEUS).
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