Early trading bodes well for GM

Minutes ahead of the market’s open, it’s looking good for GM.

After falling this week, stock futures lifted this morning off confidence that Ireland would line up a bailout, the Associated Press reported.

Ahead of the opening bell, Dow Jones industrial average futures rose 95, or 0.9%, to 11,090. Standard & Poor's 500 index futures rose 13.30, or 1.1%, to 1,190.80. Ford shares rose 2% in pre-opening trading.

GM’s debt was trading at levels that implied its stock will begin trading at about $36, CNBC reported. The IPO was priced at $33, but shares will start trading between 9:30 and 10:30 a.m. at the price new buyers are willing to pay for a piece of the company.

By Chrissie Thompson
FREE PRESS BUSINESS WRITER

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Permalink Reply by Joseph Little on November 18, 2010 at 10:35am

General Motors’ stock opened at $35 at 9:36 a.m. on the NYSE, above the $33 price of the initial public offering. After spiking to $35.99, the stock was hovering at $35.16 around 10 a.m.

“If it closes up, I’ll be happy,” CEO Dan Akerson told CNBC after ringing the stock exchange’s opening bell, accompanied by the rev of a Chevrolet Camaro SS engine.

GM sold at least 478 million common shares in its IPO, with less than 5% of its offering going to overseas sovereign wealth funds, Akerson told CNBC. The company is returning to public trading after it was booted off the NYSE when it went bankruptcy more than 17 months ago.