U.S. stocks off highs as GM sales slump, oil falls 5%

Date: Tue, 02 Dec 2008 17:01:37 -0500

U.S. stocks off highs as GM sales slump, oil falls 5%

Stocks lose steam in volatile afternoon trading after General Motors'
worse-than-expected November sales and after another drop in oil
prices drags down the energy sector.

AUTOMAKERS POST STEEP SALES DECLINES

Ford Motor Co. and General Motors Corp. post harsh declines in
November U.S. vehicle sales, serving as timely reminders of the brutal
climate as their top executives head to Capitol Hill in hopes of
gaining access to $25 billion in loans.

FORD, GM PLEDGE TO RESTRUCTURE IN RETURN FOR LOANS

Making a second pitch for $25 billion in emergency loans, the Big
Three U.S. automakers will send restructuring plans to Capitol Hill
emphasizing cost-cutting, the development of fuel-efficient
technologies and downsizing, reports said.

GE VOWS TO SHRINK FINANCE ARM, KEEP DIVIDEND

General Electric Co. shares jump after the conglomerate vows to hit
the low end of its earnings range for the fourth quarter, maintain its
2009 dividend, and cut more costs from its sprawling business.

BRITISH AIRWAYS HOLDING MERGER TALKS WITH AUSTRALIA'S QANTAS

British Airways says it's holding merger talks with Australia's Qantas
Airways in a deal that could combine two of the world's best-known
international carriers.