Thursday, April 30, 2009

Wall Street Ends Little Changed After Chrysler Files For Bankruptcy, GM Soars

. Thursday, April 30, 2009

By stockOzone team

US stocks finished mixed on Thursday after number three US automaker Chrysler filed for Chapter 11 bankruptcy protection. The Dow Jones Industrial Average fell 17.61 points or 0.22% to finish at 8,168.12. The S&P 500 retreated 0.83 points or 0.10% to end at 872.81. The Nasdaq Composite rose 5.36 points or 0.31% to 1,717.30.Chrysler LLC on Thursday filed for bankruptcy after talks between the U.S. Treasury Department and lenders broke down. However, the automaker also reached an alliance agreement with Fiat will supply small vehicle and engine technology, as well as distribution of Chrysler vehicles in Europe and other parts of the world, in return for an initial 20 percent equity stake in Chrysler.

Shares of rival automaker General Motors Corp. (NYSE: GM) climbed 11 cents or 6.08% to $1.92.

Early on Thursday, oil giant Exxon Mobil (NYSE: XOM) announced first-quarter results that missed expectations. Net income slipped 58% to $4.55 billion, or 92 cents a share, from $10.89 billion, or $2.02 a share in the year-ago period. Shares of the company slipped $1.77 or 2.59% to $66.67.

Chevron Corp. (NYSE: CVX) lost $1.46 or 2.16% to $66.10.

Among financials, JP Morgan (NYSE: JPM) tumbled $1.48 or 4.29% to end at $33. Citigroup (NYSE: C) fell 7 cents or 2.24% to $3.05. On the other hand, shares of Bank of America (NYSE: C) rose 25 cents or 2.88% to $8.93.

The largest US aluminum maker Alcoa Inc. (NYSE: AA) gained 27 cents or 3.07% to $9.07.

Shares of Caterpillar (NYSE: CAT) rallied $1.89 or 5.61% to $35.58.

Diversified US firm General Electric (NYSE: GE) rose 43 cents or 3.52% to $12.65.

Procter & Gamble Co. (NYSE: PG) fell 98 cents or 1.94% o $49.44 after it reported that it earned $2.61 billion, or 84 cents per share, compared to $2.71 billion, or 82 cents per share, a year ago. Revenue dropped 8 percent, to $18.42 billion.

Shares of Dow Chemical (NYSE: DOW) soared $2.49 or 18.43% to $16 after it announced that its first quarter net income plunged to $24 million, or 3 cents a share, from $941 million, or 99 cents a share, in the prior year quarter. Revenue declined 39% to $9.09 billion from $14.82 billion.

Eastman Kodak Co. (NYSE: EK) plunged 59 cents or 16.21% to $3.05 after it said that its first-quarter loss from continuing operations totaled $360 million, or $1.34 a share, compared with a loss of $114 million, or 40 cents a share, in the year earlier period. Revenue decreased 29% to $1.48 billion. The company also suspended the dividend on its common stock to save capital.

Viacom Inc. (NYSE: VIA) slid $1.08 or 4.97% to $20.66 after it reported that first-quarter net slumped 34% to $177 million, or 29 cents a share, from $270 million, or 42 cents a share, in the year ago quarter. Quarterly revenue fell 6.8% to $2.91 billion.

Cellphone maker Motorola (NYSE: MOT) posted a wider quarterly loss of $231 million, or 10 cents a share, compared with a loss of $194 million, or 9 cents per share in the comparable quarter a year ago. Revenue slipped to $5.37 billion from $7.45 billion. Shares of the company retreated 43 cents or 7.21% to $5.53.

The largest cable TV provider Comcast Corp. (NASDAQ: CMCSA), said Thursday that first-quarter earnings rose 6% to $772 million, or 27 cents a share, from $732 million, or 24 cents a share, in the same quarter a year ago. Revenue increased 5% to $8.84 billion. Comcast finished at $15.46, up 22 cents or 1.44%.

On the front of economic data, a release by Commerce Department showed that US consumer spending rose 0.2% in March. Personal Income declined 0.2% in March.

According to Department of Labor, Americans filing first- time claims for unemployment benefits increased by 27,000 to 640,000 in the week ending April 25, matching consensus estimates. The four-week average of seasonally adjusted initial jobless claims, a less volatile gauge, decreased by 4,250 to 646,750. Continuing claims for the week ending April 18 jumped 930,000 to a record 6.14 million.

European stocks settled with gains. The U.K. FTSE rose 54.12 points or 1.29% to 4,243.71. The German DAX and French CAC gained 1.38% and 1.38% respectively.

Asian stocks finished solidly higher. The Hang Seng index of Hong Kong rose 401.84 points or 2.76% to 14,956.56. Singapore’s Strait Times jumped 41.16 or 2.28% to 1,849.57 in Singapore.

NYMEX crude oil for May delivery climbed 20 cents or 0.4% to $51.17 a barrel.

Disclosure: Author does not own any of the stocks discussed here.

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