Bank of America, MTLQQ, MGA, ABK, MBI, BHI, PACR, UNP Popular Stocks
U.S. stocks traded higher Wednesday as the Dow Jones Industrial Average gained 116 points to 9888, the S&P 500 rose 10 points to 1055 and the Nasdaq Composite climbed 13 points to 2070.
Bank of America (NYSE:BAC, $14.93, +$0.13, 0.88%) Merrill Lynch said Randall Lynch has joined the firm as managing director within Americas industrials investment banking. Lynch is based in New York and reports to John Pratt, managing director and head of Global Diversified Industries corporate and investment banking.
Motors Liquidation Company (OTC:MTLQQ, $0.607, +$0.045, 8.01%), formerly General Motors Corporation’s board of directors has switched course on the company’s decision to sell control of its Opel and Vauxhall units to Magna International Inc. (NYSE:MGA, $43.01, +$2.84, 7.07%), citing an “improving business environment” and the strategic importance of the two brands to the auto maker’s strategy. Magna was apparently unsurprised by the decision, according to people familiar with the matter, but has yet to comment officially. The deal was making some Magna customers and investors nervous about what would happen to Magna’s other business.
Ambac (NYSE:ABK, $1.55, +$0.44, 39.64%) swung to a third-quarter profit thanks to large mark-to-market gains on credit derivatives, which had cost the bond insurer billions in losses a year earlier. Rival MBIA Inc. (MBI, $4.52, +$0.41, 9.98%) also gained.
Baker Hughes Inc.’s (NYSE:BHI, $41.51, -$1.92, -4.42%) third-quarter earnings fell 87% amid low demand for oil and gas drilling services, and the results fell short of analysts’ expectations.
Pacer International Inc. (NASDAQ:PACR, $4.18, +$1.47, 54.24%) managed, just barely, to post its first profit of the year in the third-quarter when the Street was expecting the red pen again. The logistics and freight company’s revenue slumped 25% and it burned $1.8 million in cash, but business improved from the second quarter. Pacer also signed a new agreement with Union Pacific Corp. (NYSE:UNP, $58.88, -$0.53, -0.89%) that gives it $30 million in cash to pay down half of its revolving facility and said the two will continue sharing networks. The company also agreed to give up a claim to $140 million in disputed revenue, J.P. Morgan said. Though Pacer admits the deal also means a “substantial reduction in revenues” from third-parties.
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