GM files for bankruptcy; stocks soar
Posted: Mon Jun 01, 2009 9:28 am
The automaker will close a dozen plants and cut thousands of jobs. Stocks rally on better-than-expected manufacturing and construction spending reports, along with news that China's manufacturing expanded. The U.S. savings rate hits a 14-year high.
The next chapter in the 100-year history of General Motors (GM, news, msgs)will play out in bankruptcy court.
The U.S. automaker filed for bankruptcy protection this morning, following Lehman Bros. and WorldCom as the third-biggest bankruptcy in U.S. history. Chrysler listed $39 billion in assets when it filed for bankruptcy on April 30.
In its filing, GM said it had $82.29 billion in assets and $172.81 billion in debt.
Shares of GM were up 14 cents, or 18.7%, to 89 cents this afternoon.
More broadly, stocks were surging on news that China's manufacturing sector expanded for a third month, as well as some encouraging U.S. reports on manufacturing and construction spending. At 12:10 p.m. ET, the Dow Jones Industrial Average ($INDU) had jumped 209 points, or 2.5%, to 8,710. The Nasdaq Composite Index ($COMPX) had gained 49 points, or 2.8%, to 1,824, and the Standard & Poor's 500 Index ($INX) was up 23 points, or 2.6%, to 943.
The next chapter in the 100-year history of General Motors (GM, news, msgs)will play out in bankruptcy court.
The U.S. automaker filed for bankruptcy protection this morning, following Lehman Bros. and WorldCom as the third-biggest bankruptcy in U.S. history. Chrysler listed $39 billion in assets when it filed for bankruptcy on April 30.
In its filing, GM said it had $82.29 billion in assets and $172.81 billion in debt.
Shares of GM were up 14 cents, or 18.7%, to 89 cents this afternoon.
More broadly, stocks were surging on news that China's manufacturing sector expanded for a third month, as well as some encouraging U.S. reports on manufacturing and construction spending. At 12:10 p.m. ET, the Dow Jones Industrial Average ($INDU) had jumped 209 points, or 2.5%, to 8,710. The Nasdaq Composite Index ($COMPX) had gained 49 points, or 2.8%, to 1,824, and the Standard & Poor's 500 Index ($INX) was up 23 points, or 2.6%, to 943.
