Traders-Blog.com

U.S stocks finished session mixed. The Dow fell 19.88 points, to close at 10,503.68. However, the Nasdaq rose 4.97 points to close at 2,061.62. Meanwhile, the S&P rose 0.21 points to close at 1,194.07.

Shares of General Motors Corp. (GM), which is the world’s largest automaker, skidded after yet Fitch ratings downgraded its debt to “junk” status. GM’s stock closed down 90 cents at $31.69, still above billionaire investor Kirk Kerkorian’s $31 per share tender offer for 28 million shares. Then, Fitch downgraded the senior unsecured ratings of General Motors, its financial unit GMAC, and the majority of affiliated entities to BB+ from BBB-. According to Fitch the downgrade was caused by increased competition, and a persistent slump in sales of SUV’s, which is a key source of profitability for top U.S automakers.

The minutes of the Federal Open Market Committee revealed some positive new information by reporting that Fed officials were not worried about indicators released in April that suggested that the economy was slowing, since it was only “transitory”. Also, the minutes suggest that inflation remained the biggest concern for the central bankers. According to the minutes, the Fed staff forecast inflation would edge lower over the rest of the year and into 2006.

Shares of Network Appliances Corp. (NTAP) fell to $28.53 after the company reported a fourth quarter profit of 16 cents a share on revenue of $451.8 million. Network Appliances earned $66.6 million, or 17 cents per share. For the current quarter, the company said expects pro forma earnings of 17 or 18 cents per share. And, analysts had forecast earnings of 18 cents per share on revenue of $473.3 million.

All the best,
Manuel Jesus-Backus
The Portfolio Crafter
Guaranteed monthly gains of 8% or your money back.