Ticker Shock: Blackstone Goes Whoo-Hoo for WaMu?
Tuesday's top stories and stocks with potential to move.
When I woke up this morning, the Dow futures were well in the green (and they still are as of 8:45 a.m.).
Was it President Bush's address to the nation last night, or just optimism that the bailout deal will soon be passed? And though Asia was a mixed bag, the FTSE and the DAX were still coming up green. Heck, I was an optimist.
Unfortunately, that lasted about 3 seconds, thanks to General Electric (GE).
At 6:30 this morning, GE disseminated a press release: The Connecticut-based behemoth cut its earnings estimates for the third quarter from $0.50-0.54 per share to $0.43- 0.48 per share. Making matters worse, it cranked down its full-year estimate and said it's suspending share buyback.
Apparently, few were impressed; the shares are off about 5% in pre-market activity.
My take: Mr. Immelt should probably start collecting cardboard boxes, because I think he could be in trouble here. He already took a lot of heat when the company missed estimates earlier in the year - remember Jack Welch's comments? Not to mention the fact that the stock is right near its 52-week low.
Where's the stock headed from here? My hunch is that tax-loss selling will take the shares down further. Long term, I like it, but I sincerely believe there will be a better entry point down the road.
What are the pro traders saying about your stocks?
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