April 27, 2009 / 12:30 PM / in 10 years

STOCKS NEWS US-GM to cut jobs, eliminate Pontiac brand

    Stocks on the move [HOT-RTRS]  Real-time Equity news [U E]  [RESF/US] U.S. 
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0820 ET 27April2009-GM to cut jobs, eliminate Pontiac brand 
    General Motors  on Monday said it would make deep plant and employee 
cuts, and that it would eliminate its Pontiac brand as it struggles to survive 
in a difficult market. 
    The auto maker expects to cut its hourly work force to 40,000 in 2010 from 
the current level of 61,000, leveling out at about 38,000 workers in 2011. It 
will cut its number of plants to 34 in 2010 from 47 now. In 2012, the number of 
plants will be pared to 31. 
    The Pontiac line will also be cut as GM works to focus on four core brands, 
it said. 
    For details, see [nWEN7885] 
    Shares of GM, a Dow component, rose 12.4 percent to $1.90 in premarket 
trade on Monday. 
    Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net 
0814 ET 27April2009-Qualcomm swings to Q2 loss on Broadcom settlement 
    Cell phone chip supplier Qualcomm Inc  on Monday swung to a 
second-quarter loss, hurt by investment losses and costs related to its 
settlement with Broadcom Corp . 
    In the settlement, Qualcomm will pay $891 million to Broadcom over four 
years to end the long-standing legal battles over technology patents between 
the two companies. [nN27201084] 
    Shares of Qualcomm rose 3.5 percent to $42.80 in premarket trade while 
Broadcom shares gained 1.1 percent to $24.49 before the bell. 
    Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net 
0805 ET 27April2009-Humana results and outlook lift peer in premarket 
    Shares of health insurance companies rose in premarket trade on Monday, 
after Humana Inc  reported first-quarter earnings that beat expectations 
and raised its full-year earnings outlook. 
    For details, see [nN24410859] 
    The stock surged 9.6 percent to $30 in premarket trade while Aetna  
gained 3.3 percent to $24.75, Cigna Corp  rose 0.9 percent to $19.75 and 
WellPoint  was up 0.8 percent to $41.25 before the bell. 
    Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net 
0800 ET 27April2009-Citigroup downgrades Honeywell to hold 
    Citi on Monday downgraded diversified manufacturer Honeywell International 
 to hold from buy, saying earnings upside was limited in 2010. 
    The firm wrote that leverage in 2010 would be muted by pension payments. 
    "Honeywell shares are cheap, but muted earnings leverage in 2010 will 
likely restrain relative upside in the stock. We see some potential operational 
upside to our 2010 estimates and pension inputs could swing either way, but the 
company's growth looks increasingly likely to trail our group." 
    Shares of the company, a former Dow component, fell 1.7 percent to $30.90 
in premarket trade. 
    Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net 
0754 ET 27April2009-Verizon Q1 earnings top expectations 
    Verizon Communications Inc  on Monday reported first-quarter earnings 
and revenue that topped expectations, helped by its acquisition of Alltel and 
growth in cellphone customers. 
    The communications company also added 1.3 million wireless users in the 
quarter, compared with the expectation that it would add 1.2 million. 
    For details, see [nN27350207] 
    The stock, a Dow component, closed Friday at $31. 
    Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net 
0749 ET 27April2009-Bove downgrades Wells Fargo to hold 
    Shares of Wells Fargo & Co  fell 3.2 percent to $20.71 in premarket 
on Monday, after Rochdale Securities analyst Richard Bove downgraded the stock 
to hold. 
    Bove said the company's balance sheet was showing a "tremendous amount of 
    For details, see [nWNAB8425] 
    Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net 
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