[Update: Oppenheimer downgraded AAPL to Perform from Outperform]
AAPL shares have been trading about 6.5% by midday.
General Motors Corp. (NYSE: GM), Ford Motor Co. (NYSE: F) and Chrysler were promist swift action from the White House. The action may be coming, but swift it isn't as the Bush administration faces competing pressures from lawmakers, including conservative Republicans who implored the White House not to use money from the $700 billion bailout TARP fund for the financial sector to aid carmakers. GM shares traded about 2% higher by midday, Ford's share were higher too.
Adobe Systems Inc. (NASDAQ: ADBE) jumped 12.5% in after-hours trading Tuesday after the software maker reported quarterly results and an earnings target in line with its reduced forecast, but at its top end and above analyst expectations. ADBE shares switched direction and traded 2% lower by midday.
Citigroup Inc. (NYSE: C), according to the Financial Times, will merge its investment and commercial banking operations as part of its attempts to break down barriers beween its businesses and successfully emerge from the financial crisis. Shares were 3% lower in premarket trade, also hit by Morgan's loss. C shares were down about 4% by midday.
General Mills (NYSE: GIS) posted higher-than-expected quarterly profit thanks to its efforts to cut costs and invest in marketing and new products helped. GIS also raised its full-year profit forecast, giving further credence to its defensive nature. Excluding one-time items, GIS earnings were $1.36 a share, topping estimates of $1.23, according to Reuters Estimates. Shares were 3.4% higher in premarket trading. GIS shares gains were much lower by midday, about 0.5% higher.
Reporting today among others are:
Nike Inc. (NYSE: NKE), which is expected to report 78 cents EPS, Morgan Stanley (NYSE: MS), which is expected to report a loss of 34 cents a share and ConAgra Foods Inc. (NYSE: CAG), which is expected to report 37 cents EPS. ConAgra reported quarterly profit that topped analysts' expectations, as its commercial foods segment performed well. The company also reaffirmed its guidance for the full year and shares jumped over 9% by midday trading.
[Update: Morgan Stanley (NYSE: MS) reported a much wider-than-expected quarterly loss of $2.24 a share as the credit crisis generated more writedowns and slashed fees from investment banking and brokerage. MS shares dropped about 7% in premarket.] MS shares also switched direction and were 1% higher by midday trading.
Bristol-Myers Squibb Co. (NYSE: BMY) plans to cut its workforce by another 10% through 2010 after announcing similar plans last December
News Corp. (NYSE: NWS) said it will move its stock exchange listing from the New York Stock Exchange to the Nasdaq, effective Dec. 29. Its Class A common stock will trade under the symbol "NWSA" and its Class B common stock will trade under "NWS" on the Nasdaq.