Stocks to watch for Tuesday, July 15, 2008:

  • General Motors (GM) plans to slash several thousand job cuts to white-collar, salaried employees. Also, the company is expected to announce further production cuts in its trucks division and a reduction in benefits and executive compensation. The Associated Press reports there has been no expectations of plant closures resulting from the scaling back of pickups and SUVs. Plans for raising capital to fund the restructuring should be announce by CEO Rick Waggoner today.

  • Genentech (DNA) reported quarterly profit of $782 million, or 73 cents a share, a 5% jump from $747 million, or 70 cents a share a year ago. Operating revenue for the quarter increased 8% to $3.24 billion, from $3.0 billion last year. The company was aided by strong sales overseas through its collaborators, reported MarketWatch. Additionally, sales of its popular Avastin oncology drug rose 12% to $650 million.

  • Intel (INTC) debuted its next-generation Centrino wireless chip, the Centrino 2, as it continues to expand its mobile technology, reported Reuters. The low key launch had been delayed several months. The chips contain capabilities for both wi-fi connections and also the newer WiMax, which can be used over much greater distances. The chips are intended to be used in notebook computers.

  • Lehman Brothers (LEH) and CEO Richard Fuld are reportedly considering options to take the company private, reported The New York Post. The company's stock is down almost 80% on the year, including 15% yesterday, as questions about its solvency have made the rounds. "The idea is why sell to someone else at so cheap a price when they could buy themselves," noted one source.

  • Washington Mutual (WM) said that it's in less trouble than many think, as it significantly exceeds all regulatory "well-capitalized" minimums for depository institutions and also has excess liquidity of over $40 billion, reported The Wall Street Journal. Yesterday, a Lehman Brothers analyst warned the company won't turn a profit until the second half of 2009. Washington Mutual noted that it recently raised $7.2 billion in capital and that its total tangible assets ratio was 7.8% as of June 30, the Journal reported.


Market Recap

  • Asian trading closed with the Hang Seng -3.81%, Nikkei -1.96%, Sensex -4.91%, Taiwan -4.51% and Shanghai -3.43%.

  • A quick check across the pond finds the CAC -2.20%, DAX -2.95%, FTSE -2.66%, ATX -3.79%, Swiss Mkt. -2.35% and Stockholm -2.31%.

  • Commodities are rising today with crude oil +1.11 to 146.28 and gold is up +11.5 to 985.2 this morning.