End of the day selloff Wednesday was caused by GE (not GM)
I believe an alert (pop-up) issued Wednesday evening by PTAI may have mistakenly attributed the late afternoon sell off in the US equity markets to GM (General Motors), when in fact it should have been GE (General Electric). Just FYI.
As reported by Forbes.com
"Wall Street endured another wild run into the close Wednesday as the final-hour volatility that has marked much of October showed up again and the Dow finished with a triple-digit loss, erasing substantial gains in a matter of minutes.
General Electric (nyse: GE - news - people ) CEO Jeff Immelt said the conglomerate, which many consider a proxy for the health of the U.S. economy, is looking to post 2009 earnings in line with its 2008 performance, even if revenue falls. The news, which would seem to indicate the company will need to cut costs aggressively, sapped what had been a strong rally after the Federal Reserve trimmed another half point from interest rates.
GE was down 1.5% late Wednesday.
The Fed's anticipated decision to take its benchmark Fed-funds target down to 1% was met with shrugs by investors who think the Fed still has another quarter-point cut in reserve for its December meeting, according to trading in Fed-funds futures.
A strong rally in oil, however, held up Wednesday as the U.S. dollar sagged, pushing crude over $4 higher to around $67 a barrel.
In equity markets, General Motors (nyse: GM - news - people ) is said to have reached some compromises with Cerberus Capital Management, which controls Chrysler, but TradeTheNews.com reported that a tie-up would run into trouble with union trust funds.
Shares of GM jumped nearly 9% Wednesday. American depositary receipts of Toyota (nyse: TM - news - people ) gained nearly 3%. GM's Detroit rival Ford Motor (nyse: F - news - people ) was up less than 1%
As reported by Forbes.com
"Wall Street endured another wild run into the close Wednesday as the final-hour volatility that has marked much of October showed up again and the Dow finished with a triple-digit loss, erasing substantial gains in a matter of minutes.
General Electric (nyse: GE - news - people ) CEO Jeff Immelt said the conglomerate, which many consider a proxy for the health of the U.S. economy, is looking to post 2009 earnings in line with its 2008 performance, even if revenue falls. The news, which would seem to indicate the company will need to cut costs aggressively, sapped what had been a strong rally after the Federal Reserve trimmed another half point from interest rates.
GE was down 1.5% late Wednesday.
The Fed's anticipated decision to take its benchmark Fed-funds target down to 1% was met with shrugs by investors who think the Fed still has another quarter-point cut in reserve for its December meeting, according to trading in Fed-funds futures.
A strong rally in oil, however, held up Wednesday as the U.S. dollar sagged, pushing crude over $4 higher to around $67 a barrel.
In equity markets, General Motors (nyse: GM - news - people ) is said to have reached some compromises with Cerberus Capital Management, which controls Chrysler, but TradeTheNews.com reported that a tie-up would run into trouble with union trust funds.
Shares of GM jumped nearly 9% Wednesday. American depositary receipts of Toyota (nyse: TM - news - people ) gained nearly 3%. GM's Detroit rival Ford Motor (nyse: F - news - people ) was up less than 1%
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