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Stock Market & Financial Investment News

News Breaks
July 23, 2014
13:45 EDTF, GMEarnings Preview: General Motors to take Q2 charge up to $1.2B on recalls
General Motors Company (GM) is expected to report second quarter earnings on Thursday, July 24 before the market open with a conference call scheduled for 10:00 am ET. General Motors is a global designer and builder of cars, trucks and automobile parts. EXPECTATIONS: Analysts are looking for earnings per share of 58c on revenue of $40.59B, according to First Call. The consensus range for EPS is 50c-74c on revenue of $39.74B-$41.53B. LAST QUARTER: GM reported Q1 EPS of 6c against estimates for 4c on revenue of $37.4B against estimates for $38.43B. On its Q1 earnings conference call, GM said its core operating performance was on plan for the year. It noted GMNA and consolidated International operations were performing as planned, with Europe and China performing better than plan, and GMSA performance weaker due to challenging environments in Venezuela and Brazil. On its Q1 earnings conference call, GM said it was on track to break-even in Europe by mid-decade, and no meaningful slowdown in U.S. sales had been seen after the recall. GM CEO Mary Barra said the company remained "optimistic" on its 2014 U.S. sales performance despite negative publicity related to its ongoing ignition switch recall and associated legal matters. Barra saw the ability to do repairs increasing in coming months, and expected to have sufficient parts to be able to complete the majority of recall-related repairs by October. She expected the need for loaner cars related to recalls to be "significantly reduced" by Q3. On June 30, GM announced it will conduct six new safety recalls in the United States involving about 7.6M vehicles from the 1997-2014 model years. Among these recalled vehicles, GM was aware of seven crashes, eight injuries and three fatalities. GM expects to take a charge of up to approximately $1.2B in Q2 for the cost of recall-related repairs announced in the quarter. This amount includes a previously disclosed $700M charge for recalls already announced during Q2. STREET RESEARCH: Street research has been mixed in the weeks leading up to GMs Q2 earnings report. On June 26, Sterne Agee said GM and Ford (F) shares should be owned. After meeting with the management of Ford (F) and GM, Sterne Agee thought the companies' European businesses were improving, while pricing was favorable for them. The firm believed that the stocks were at an inflection point. On July 14, UBS said Ford should beat Q2 estimates, while General Motors will miss. UBS believed Ford (F) will beat Q2 estimates while General Motors (GM) will miss due to recall costs. Were it not for the recall charges, UBS thought GM would post solid underlying results. UBS, which thought Ford is likely to see a strong second half as product launch costs are already factored into guidance, raised its price target on the stock to $22 from $18. UBS increased its GM price target to $54 from $49. The firm kept Buy ratings on both stocks. PRICE ACTION: GM shares have traded higher by about 10% since Q1 results were released, but are up only about 3% over the past year. In afternoon trading ahead of Thursday's Q2 report, GM shares are down fractionally.
News For GM;F From The Last 14 Days
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March 27, 2015
14:55 EDTGMGeneral Motors weekly volatility at low end of historic range
General Motors April weekly call option implied volatility is at 22, April is at 20, May is at 21, June is at 22; compared to its 26-week average of 24 according to Track Data, suggesting decreasing price movement.
08:38 EDTFFord volatility at low end of historic range
Ford April weekly call option implied volatility is at 21, April is at 19, May is at 20, June is at 19; compared to its 26-week average of 24 according to Track Data, suggesting decreasing price movement.
March 26, 2015
14:19 EDTGMGM expects North American Malibu sales to surge, Reuters reports
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13:15 EDTFFord opens $1B Indian plant, wants to triple exports from country, Reuters says
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10:15 EDTFFord to host sales conference call
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07:22 EDTGMGeneral Motors near-term risk/reward favorable, says Deutsche Bank
After speaking with management, Deutsche Bank thinks General Motors' presentation to investors next week will be relatively upbeat. Deutsche believes GM is benefitting from mix and price in North America, mix in consolidated Asia, and raw material costs. It views the near-term risk/reward on shares as favorable, but keeps a Hold rating on the name.
March 25, 2015
09:25 EDTFFord issues three safety recalls in North America
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March 24, 2015
08:41 EDTGMGeneral Motors capacity hampering sales growth, says Credit Suisse
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06:18 EDTGMGM to build next-gen Chevrolet Cruze in Coahuila, Mexico, Reuters reports
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06:12 EDTF, GMFord, GM considering asking for lower-paid workers, Bloomberg says
Ford (F) and General Motors (GM) are considering asking the United Auto Workers union to create a lower-pay tier of employee at U.S. auto factories, reports Bloomberg, citing people familiar with the matter. The union, on the other hand, is considering eliminating the existing tier structure altogether, according to a person familiar with the union leadership. The proposed lower tier worker would not assemble cars, said the sources. Reference Link
March 23, 2015
11:11 EDTGMGM ignition switch death claims rises to 74, WSJ reports
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07:37 EDTGMVolkswagen to cut at least 150 workers at Russian plant, Reuters reports
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March 20, 2015
08:01 EDTF, GMStifel says evidence supports Apple moving into electric vehicles
Analysts at Stifel say they see enough evidence to suggest that Apple is internally working on the development of a battery electric vehicle to be sold over the next five-to-ten years. The analysts are "intrigued" by Apple CFO Luca Maestri's background at General Motors (GM). They believe Apple's investments in manufacturing should be a key consideration for investors and point out the $40B spent by the iPhone maker over the past five years, with 80%-plus invested in manufacturing, is similar to GM, Ford (F) and Daimler-Benz and well above Tesla's $1.8B cumulative capex. The analysts say there is a "lot to think about" regarding Apple's move into the car space, including the regulatory environment. They keep a Buy rating on the tech giant with a $150 price target. Shares of Apple closed yesterday down 97c to $127.50.
06:22 EDTGMGM CEO to be questioned October 8 over ignition failures, AP says
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March 18, 2015
08:37 EDTGMGeneral Motors says to change business model in Russia
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08:36 EDTGMGeneral Motors says to idle auto plant in St. Petersburg
March 17, 2015
14:13 EDTGM, FMorgan Stanley questions GM capital allocation plan
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09:13 EDTFMSFT announced several partnerships with industry leaders
At Microsoft Convergence 2015, Microsoft (MSFT) announced several new partnerships with industry leaders. Teaming up with Microsoft, Ford Motor (F) will expand connected services for customers around the world with the creation of the Ford Service Delivery Network. Microsoft also announced several partnerships and collaboration agreements with leading companies in sales, field service, digital transaction management and analytics markets. Microsoft and InsideSales.com will offer its complete sales acceleration platform. Microsoft and FieldOne Systems announced their agreement to bring the FieldOne Sky field service management solution into the Microsoft Dynamics global independent software vendor program. DocuSign and Microsoft announced that the two companies will bring DocuSign's Digital Transaction Management platform to Microsoft Dynamics CRM users. Microsoft also announced the acquisition of intellectual property from Fusion Software which will add Voice of the Customer capabilities to Microsoft Dynamics.
08:05 EDTGMGeneral Motors coverage resumed with an Underweight at Morgan Stanley
Morgan Stanley reinstated General Motors with an Underweight and $28 price target. The firm believes GM's agreement to accelerate capital returns to investors is a popular short-term decision but raises questions longer-term by increasing both financial and strategic risks.
06:23 EDTGMGM employees to be deposed for class action case, NY Times says
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