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Monday, November 10, 2008
Market Winners & Losers: AIG, General Motors
David O'Brien
FOXBusiness
Nov. 10 proved again that no one likes Mondays. The markets were unable to hold early gains and the major indices finished on average down 1.3%. Here are a few of the session’s winners and losers.
Winners
Tesoro Corp. (TSO)
Though falling crude prices had been hurting the stock in recent days, the announcement of China’s stimulus package drove the stock up nearly 9% on the day to $10.56. This trend was evident in the S&P 500’s energy sector today.
Peabody Energy Corp (BTU)
This was another company that benefited from the news of China’s $580 billion stimulus package. The world’s largest private-sector coal provider jumped more than 8% to $37.71 a share with the news of China’s bailout. The company has also benefited recently from the higher cost of coal.
American International Group Inc. (AIG)
The international insurance and financial-services provider saw its stock climb 8.1% to $2.28 on the back of a government restructuring plan that in total will give the company more than $150 billion in aid. The new plan comes shortly after AIG posted a nearly $25 billion loss for the third quarter.
Nabors Industries Ltd. (NBR)
The land drilling company was just one of many energy stocks to hop on the China stimulus bandwagon. The stock was up over 6% in the session to $16.06 a share. This was another company that had been hurt recently with the falling price of crude oil.
Newmont Mining Corp. (NEM)
The world’s largest gold producer rounds out the top gainers, up over 5.5% to $27.47. The company has outfits in five continents and is continuing to build its operations.
Losers
American Capital Ltd. (ACAS)
The stock fell 43% to an all-time low of $7.87 a share as the company finished a deal with European Capital for $158 million. ACAS had already owned 67% of the European Capital and was further hampered as it reported that it will suspend dividends for the remainder of 2008.
Unisys Corp. (UIS)
The IT service and consulting provider saw its stock drop 34% to 60 cents a share as Standard & Poor’s reported that the company is being removed from the S&P 500 index. The stock fell over 30% on the news that is being replaced by Peoples United Financial Inc. on Wednesday.
General Growth Properties Inc (GGP)
The real estate investment trust watched its stock plummet 34% to $1.37 a share as Circuit City (CC) declared bankruptcy today. GGP is one of three major real estate investment companies that were greatly impacted today. The stock rests just seven cents above its 52-week low.
Developers Diversified Reality Corp. (DDR) $7.25 $-2.37 -24.64%
Another company affected by the Circuit City bankruptcy was Developers Diversified, as the company owned 47 of the 721 U.S. stores. This caused stock to close down almost 25% at $7.25 a share.
General Motors Corp. (GM)
The stock fell 23% to $3.36 as Deutsche Bank AG set a price target of $0 for the company. Reports show that GM operations may be without funding as early as December. This caused the stock to close at levels it has not seen since the end of World War II. There are also reports that GM will lay off more than 5,500 employees in an attempt to cut costs.
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