Option Investor
Market Updates

GM plans offering to strengthen balance sheet

HAVING TROUBLE PRINTING?
Printer friendly version

Shares of General Motors (NYSE:GM) $38.07 is gaining 93 cents in this morning's pre-market trade after saying it plans to offer $10 billion in debt and convertible securities, effectively doubling its original balance sheet strengthening target for 2003. The company said it intends to use "substantially all" of the proceeds to partially fund its pension fund and other benefit obligations.

The move by GM has Prudential upgrading the stock to "buy" from "sell" on the belief that an eventual economic recovery will overcome any short-term negative news.

PeopleSoft (NASDAQ:PSFT) $17.61 is edging down 5 cents to $17.56 after the company's board asked shareholders to once again reject a sweetened offer from Oracle (NASDAQ:ORCL) $13.34. PeopleSoft's board concluded that any attempt to combine the two would face substantial regulatory hurdles and delays and most likely be prohibited. The board felt that delays and uncertainties, combined with Oracles stated intentions of discontinuing PeopleSoft's products, would subject PeopleSoft's business to irreparable damage.

Traders are looking at a higher open for the markets as S&P futures (sp03u) gain 5.3 points to 999.00. NASDAQ futures (nd03u) are rising 10.5 points to 1,236, while Dow futures (dj03u) are higher by 40 points at 9,195.

Fair value for the S&P 500 today is $-1.17. That price will not change during the session. HL Camp & Company has their computers set for program buying at $0.10 and set for program selling at $-2.19.

Foreign Markets

Japan's Nikkei-225 reversed an early loss to finish in positive territory for a fourth-straight session as an intra-day recovery in banks offset losses in exporters. Mizuho Financial group has been investing in Japanese governments bonds and was hit lower on Thursday as the Japanese bond market saw steep declines, but rebounded 3.1% today to 93,200 yen.

European markets have had a volatile session after a dip lower to now trade in positive territory. Royal Dutch (NYSE:RD) $48.15 rose 1.1%, while Total (NYSE:TOT) $79.22 gained 0.7% as Brent crude saw gains.

German producer prices fell 0.3% in May on a month-to-month basis, while producer prices were up 1.3% from last year. Germany's Federal Statistics Office said the drop in oil prices was the most prominent reason for the 0.3% decline in May.

Asia/Pacific

Hong Kong.......Hang Seng.........9,930....-49.....-0.50%

Japan...........Nikkei 225........9,120.....+9.....+0.11%

Taiwan..........Taiwan Weighted...5,002....-46.....-0.92%

Europe

France..........CAC 40............3,184....+19.....+0.62%

Germany.........DAX...............3,255.....+8.....+0.26%

Switzerland.....Swiss Market......4,930....+11.....+0.23%

United Kingdom..FTSE 100..........4,163....+31.....+0.76%

Jeff Bailey

Intraday Update Archives