General Electric Co. (NYSE: GE) is seeking funds from China Investment Corp., Government of Singapore Investment Corp. and at least two other sovereign-wealth funds. GE shares have plunged some 60% this year as the company has lowered 2008 profit target twice. But GE also raised $3 billion last month as Warren Buffett's Berkshire Hathaway Inc. (NYSE: BRK) invested in the company. GE shares declined 8.3% around 9:55 am. The company said that while it is in talks with Asian investors about joint ventures, it has no intention of raising additional capital from sovereign-wealth funds.
General Motors Corp (NYSE: GM), Ford Motor Co. (NYSE: F) and Chrysler Llc returned empty-handed from Washington as the bailout plan for the automotive sector seems hanging by a thread. The sought after compromise couldn't be reached and the Senate canceled plans for a vote Wednesday. The Bush administration and congressional Republicans have rejected Democrats' plan to dip into the $700 billion Wall Street rescue fund for a $25 billion automotive sector bailout. Interestingly, some think no bailout will not send the stock market off a cliff. Meanwhile, Chrsyler still wants to merge with GM -- little wonder there.
However, GMAC Financial Services has applied to the Federal Reserve to become a bank holding company. If approved, it would allow GM's financing arm to be eligible for aid under the Treasury's $700 billion bank rescue plan, automotive bailout or not. Still, GM shares were down about 10% in premarket trade (8:05 am), just as Ford's were up 3.2% (8:05 am). GM shares were beaten down another 11.5% around 9:55 am, Ford's were down some 4.8%.
Other companies scheduled to post financial results today include: Salesforce.com Inc. (NYSE: CRM) -- 7 cents expected quarterly EPS --and The Gap, Inc. (NYSE: GPS) -- 34 cents expected quarterly EPS.
Limited Brands (NYES: LTD) reported its third-quarter net income fell to $4.2 million, or a penny a share, beating estimates by a penny. Comparable store sales, a key retailing metric, decreased 7% in the quarter. The company gave fourth-quarter lower than estimates. LTD shares started the day much lower but were 2.4% lower about half an hour after the open.
Pfizer Inc. (NYSE: PFE) said it was withdrawing an application to sell Viagra without a prescription in Europe.
PetSmart, Inc. (NASDAQ: PETM) posted a higher profit that beat Wall Street estimates on Wednesday. It also forecast high-single digit sales growth and earnings for the year that were above Wall Street estimates. PETM shares were up 11.11% in after-hours trading Wednesday. PETM shares kept the premarket gains and continued to trade over 11% higher around 10 am.
Boeing Co. (NYSE: BA) plans to cut 27%, or 800, of the jobs at its Wichita, Kan., defense operations. BA shares were up 1.4% in premarket trade (8:00 am).
Ambac Inc. (NYSE: ABK) shares gained 50% in premarket trade (8:08 am) as the struggling bond insurer said it reached a deal under which it has paid $1 billion in cash to free itself from $3.5 billion of collateralized debt obligations. Analysts proceeded to to reduce its projected losses. ABK shares tamed the 50% indicated gains, and were up "only" about 30% half an hour into the session.
Citigroup Inc. (NYSE: C) shares slumped a record 23% Wednesday to close at $6.40 and spreads on its debt widened after the bank took on more than $17 billion in assets from structured investment vehicles and shut another hedge fund. C shares recovered this morning, up 6.6% in premarket trade (8:09 am). Citi shares contiued their plunged today, down over 12% half an hour into the session even as news of Prince Alwaleed saying he plans to increase his stake in Citi to 5% from under 4%. Perhaps it was his support in Pundit that has investors unhappy.
Yahoo! Inc. (NASDAQ: YHOO) -- T-Mobile selected the internet portal as the default search provider for most of its devices, as it beat Google and Microsoft. This happens as Ballmer said Microsoft is not interested in buying the whole of Yahoo! any more, but is open to collaborations. YHOO stock recovered today, up 1% about half an hour into the session.
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