Rio Tinto Group (NYSE: RTP) will cut 14,000 jobs worldwide, or 12.5% of it work force, and reduce capital investment. It hopes this way to save $1.6 billion a year by 1010 as part of new measures to reduce its debt as demand for iron ore and other metals declines. Rio Tinto also said it will try to sell "significant assets" in order to reach its goal of trimming $6.6 billion from its debt. Merrill Lynch upgraded RTP from Underperform to Buy. RTP shares were up over 18% in premarket trade. RTP shares actually soared over 25.5% near 1 pm.
Yahoo! Inc. (NASDAQ: YHOO) will start implementing a job cut announced late October and begin handing out pink slips Wednesday to about 1,500 workers as the internet company tries to boost profit. Yahoo also may pull the plug on some products and services. YHOO shares were up 3.3% in premarket trade. YHOO shares gained 6.3% by 1 pm.
Electronic Arts (NASDAQ: ERTS) said is expecting to miss its prior outlook for fiscal 2009 revenue and earnings due to weaker-than-expected holiday sales. It didn't give a new guidance. EA also said it may cut more jobs on top of the 500-600 it had already announced and reduce its product portfolio. Piper Jaffray downgraded ERTS from Buy to Neutral and even apologized for being wrong. B of A also downgraded ERTS from Buy to Neutral. ERTS shares were down over 9% in premarket trade. ERTS shares deepened earlier losses and were down over 14% by 1 pm.
Toyota Motor Co. (NYSE: TM) said Wednesday it would further reduce production at several factories in North America and will temporarily suspend output in December and January for different amount of times in Indiana, Kentucky, California and Canada. This is on top of previous reductions announced last month. Toyota has also suspended production at factories in Japan. TM shares were up nearly 5% in premarket trade. TM shares gained 6.3% by 1 pm.
Sony Corp (NYSE: SNE), added to earlier announcement Tuesday and said late Tuesday it will close its facility in Westmoreland County, Pa.
AIG (NYSE: AIG) -- The Wall Street Journal's sources say AIG "owes Wall Street's biggest firms about $10 billion for speculative trades that have soured." AIG's bad bets seem to just keep compounding as it asks the government for more money... AIG shares were down over 4% in premarket trade. AIG shares lost 9.3% of their value by 1 pm.
Merck & Co. (NYSE: MRK), in an attempt to stay competitive as many of its top sellers go off patent, said it is creating a unit to make generic biotech drugs. This is "a potentially lucrative market long immune to generic competition." MRK shares gained 1.5% in premarket trade. MRK shares gained 3.2% by 1 pm.
General Electric (NYSE: GE) was downgraded by UBS from Buy to Neutral. GE shares actually traded over 1% higher today.
Wells Fargo (NYSE: WFC) was downgraded at Merrill Lynch from Buy to Neutral, and target price cut from $35 to $32. WFC shares declined 4.7% by 1 pm.
Closing Bell: When We All Love the PIIGS (NBG, SQNM, PG, ERTS, KO)
Serious Money: Cheapest Stocks List Shrinks from 26 to 21
Chasing Value: Hasbro Earnings Makes My Point
Reader Comments (Page 1 of 1)
12-10-2008 @ 8:20AM
QuickCarl said...
I disagree about GE. My analysis is BUY and keep buying until the dividend lowers in 2010
12-10-2008 @ 10:13AM
Sandy said...
GM's stock was $64 per share when Wagoner took over in 2001. Now the share is $5. This to me does not represent success.