Schaeffer's Trading Floor Blog

Buzz Stocks: Bank of America, Boeing, AT&T, and General Motors

Among today's stocks in the news to watch are BAC, BA, T, and GM

by 1/17/2013 8:59 AM
Stocks quoted in this article:

With a slew of economic and earnings on deck for today, U.S. stock futures are treading water around breakeven this morning. Meanwhile, here are some stocks to watch, including worsening developments for the Dreamliner aircraft and good news for auto workers:

  • Earnings news: Bank of America Corp (NYSE:BAC) said fourth-quarter earnings totaled 3 cents per share. While the figure was down from the previous year due to mortgage settlement charges, it did exceed analysts' average estimates (The Huffington Post); UnitedHealth Group Inc. (NYSE:UNH) reported a fourth-quarter profit of $1.20 per share, a 3-cent improvement from the previous year and in line with analysts' expectations. (CBS News)

  • One day after Japan's two largest airlines halted all 787 Dreamliner flights, the Federal Aviation Administration (FAA) followed suit, quickly spurring a similar move by the European Aviation Safety Agency. All of The Boeing Company's (NYSE:BA) Dreamliner aircraft in the U.S. and Europe will remain on the ground until concerns with the on-board lithium batteries can be laid to rest. United Airlines -- a division of United Continental Holdings Inc (NYSE:UAL) -- is the only U.S. carrier currently flying the Dreamliner. While it has six of the planes in its fleet, it has been actively flying only one. (Chicago Tribune)

  • Rio Tinto plc (ADR) (NYSE:RIO) CEO Tom Albanese has resigned without fanfare, following the miner's disclosure of a $14 billion impairment charge. Albanese had been with the company for nearly two decades and in its top position since 2007. The company's head of the iron-ore unit and Australian operations, Sam Walsh, is immediately assuming the post. (The Wall Street Journal)

  • According to insider sources, AT&T Inc. (NYSE:T) may acquire a European carrier in order to expand its presence in the growing region. Among the potential candidates are Everything Everywhere (the first U.K. carrier offering 4G service), and Royal KPN, which is based in the Netherlands. (SlashGear)

  • General Motors Company (NYSE:GM) is earmarking $1.5 billion to improve its factories in North America this year. The investment comes at a time when the automaker hopes to roll out 20 new vehicles in the U.S., effectively replacing 70% of its existing models. (Bloomberg)

  • CBS Corporation (NYSE:CBS) is bailing out of the outdoor-advertising business. Specifically, the broadcasting concern is selling its European and Asian billboard division, and will shift its domestic billboard operations into a real estate investment trust (REIT). The billboard division accounts for roughly $1.8 billion annually at CBS, but conversion to a REIT allows for the possibility of new investors. (Los Angeles Times)

  • Finally, one U.S.-based developer showed some real ingenuity -- and a staggering lack of ethics. According to a security report from Verizon Communications Inc. (NYSE:VZ), the man outsourced his programming job to China (for one-fifth of his salary), and spent the day bidding on eBay, networking on Facebook, and "watching cat videos." The good news is, the alleged perpetrator has been caught, and the work produced by his proxy employees was "clean, well-written and submitted in a timely fashion." (Mashable)


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