From Briefing.com: 4:15 pm : Stocks settled with solid gains on Wednesday following a volatile session as traders digested news that an agreement had been reached over a potential aid package for the struggling U.S. automakers.
The S&P 500 traded with a gain of as much as 2.2%, fell to a loss of 0.4% with about two hours left in the session and then a broad-based recovery effort helped the index settle with a gain of 1.2%.
The White House confirmed that it has reached an agreement with congressional Democrats on a $15 billion aid package for U.S. automakers. The White House called the aid either a bridge to viability or a bridge to bankruptcy.
The deal depends on the automakers having a plan in place that shows long-term viability by March 31. If the companies are unable to prove their long-term viability, the government will ask for its money back and the automakers will likely have to enter bankruptcy protection. It's been reported that General Motors (GM 4.58, -0.12) and Chrysler will be receiving the initial aid, as Ford (F 3.21, -0.02) is currently in a better financial position.
Some enthusiasm faded after several Republican lawmakers expressed opposition to the deal.
On a related note, GMAC, GM's 49% held finance arm, said that it failed to meet the capital requirements to become a bank holding company. It is attempting to convert to a bank holding company to obtain greater access to funding. GMAC said if it is unable to successfully convert to a bank holding company it would have a material adverse effect on GMAC's business, results of operations and financial position.
As a whole, news has leaned negative this session. Electronic Arts (ERTS 17.00, -2.35) said its fiscal year 2009 earnings and revenue will come short of its previous guidance, meaning its earnings and revenue will miss the consensus estimate. Eastman Kodak (EK 6.59, -0.61) withdrew its fiscal year 2008 guidance. Rio Tinto (RTP 93.83, +20.74) is cutting as much as 5,500 jobs or 12% of its workforce and 8,500 contract workers. Office Depot (ODP 2.66, +0.23) plans to close 112 underperforming retail stores in North America over the next three months, which marks about 9% of its North America store base.
Meanwhile, AIG (AIG 1.74, -0.19) may owe $10 billion to Wall Street firms due to speculative trades, according to The Wall Street Journal.
Like stocks, crude oil had a very volatile session, with some of the action fueled by the government's weekly energy report. The data showed a smaller-than-expected increase in crude stockpiles, while gasoline inventories rose by a larger-than-expected amount. Crude settled with a gain of 4.3% at $43.89 per barrel after trading with a gain as high as 9.8%. Commodities as a whole rose 4.1%.
In the end, eight of the ten sectors advanced. The materials (+2.7%) and energy (+4.7%) sectors provided leadership thanks to the strength in commodities.
The financial sector underperformed. American Express (AXP 21.55, -1.74) saw selling pressure after being initiated with a Sell at both Citigroup and Banc of America.DJ30 +70.09 NASDAQ +18.14 NQ100 +0.8% R2K +2.3% SP400 +2.7% SP500 +10.57 NASDAQ Adv/Vol/Dec 1770/1.97 bln/973 NYSE Adv/Vol/Dec 2117/1.31 bln/952
4:00PM SMSC announces the appointment of Kris Sennesael as Vice President & Chief Financial Officer effective January 5, 2009 (SMSC) 15.29 +0.16 :
3:45PM JA Solar lowers Q4 guidance, sees Q4 revs of ~$124 mln, down from $$\191.5-20.9 mln, vs $231 mln consensus (JASO) 2.94 -0.06 : Guidance for gross margin to be in the range of 5 to 7% and non-GAAP earnings per ADS to be approximately break-even remains the same. Co's target for total production output has been updated to be in the range of 250-260MW for 2008, from its earlier guidance of 310MW for 2008. The nameplate annual production guidance remains at 600MW for the end of this year. "Over the past few weeks, we have seen a dramatic slowdown in orders, which we believe is related to macro economic conditions. We remain positive about JA Solar's overall competitive position, and continue to expect profitable growth in 2009."
8:03AM Research In Motion Subsidiary Files Formal Take-Over Bid for Certicom (RIMM) 39.21 : Co announced that a wholly-owned subsidiary of RIMM has formally commenced its take-over bid for all of the outstanding common shares of Certicom Corp. (TSX: CIC) for CAD $1.50 in cash per share, subject to certain terms and conditions. The Offer will be open for acceptance until 5:00 p.m. (Toronto time) on January 15, 2009 unless withdrawn or extended by RIMM's subsidiary.
6:31AM Novatel Wireless announces the resignation of Brad Weinart, effective dec 8, who recently served as president of Novatel Wireless (NVTL) 3.12 :
Market Data 
Markets 
AI
