Stocks Edge Lower as GM Bankruptcy Looms
Yesterday's rally took a pause as investors mulled over the implications of a possible bankruptcy filing by General Motors. Meanwhile, oil prices rose to a 6-month high above $63 a barrel. The Dow slipped 4 points to 8468 while Nasdaq lost 6 points to 1743.
On the upside
LED lighting company Cree (Nasdaq: CREE) raised its revenue and profit targets for the 4th quarter due to a surge in sales.
Bank of America (NYSE: BAC) raised another $5.9 billion by converting preferred shares to common stock. The bank has raised $26 billion out of $33.9 billion in capital needed to boost its reserves.
On the downside
Staples (Nasdaq: SPLS) posted higher revenues and lower quarterly earnings pared by higher costs. Same-store sales for the office supply retailer fell in North America.
Monsanto (NYSE: MON) lowered its 2009 earnings outlook. Analysts promptly downgraded the agricultural products maker.
Shares of Zale (NYSE: ZLC) lost ground after the company reported a quarterly loss that missed expectations. Same-store sales fell sharply for the jeweler.
In the broad market, declining issues outpaced advancers by a margin of nearly 5 to 4 on both the NYSE and on Nasdaq. The Russell 2000 which tracks small cap stocks lost 2 points to 498.
