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Morning Market Roundup: Lowe’s Revenues Up, GM Opens New Plant in China

Nov. 19, 2012 9:42am

Here’s what’s important in the business world this morning:

GM: General Motors Co. and its local Chinese partners have launched a second plant to make cars for its local discount brand Baojun, ratcheting up the battle for customers at the fast-growing lower end of the world’s biggest auto market.

The SAIC-GM-Wuling joint venture opened the factory on Sunday in southwestern Guangxi province. GM and its partners have invested ¥8 billion ($1.3 billion) in the facility, which will be capable of turning out up to 400,000 vehicles a year.

The joint venture is also building a powertrain factory at the plant that will be able to produce up to 400,000 engines annually. It’s scheduled to open in September 2013.

China surpassed the United States as the world’s biggest auto market by vehicles sold in 2009 but slowing sales growth has prompted global automakers to look for new ways to tap the faster-growing low end of the Chinese market in smaller cities and the countryside.

The SAIC-GM-Wuling is focused on making mini-trucks and microvans.

Lowes: Lowe’s Cos.’ said Monday that its third-quarter net income surged 76 percent, helped by lower costs and higher revenue, as the company’s efforts to revamp its merchandise and prices appeared to be gaining traction.

Its adjusted earnings without charges and its revenue both beat Wall Street forecasts. Its shares rose more than 4 percent in premarket trading Monday.

Lowe’s has been retooling its pricing strategy, and last summer returned to offering permanent low prices on many items across the store, instead of offering fleeting discounts. But the changes have been slow to catch on, and last quarter Lowe’s said it could take until the middle of next year to reap the benefits of the strategy.

Greece: A day before it hopes to secure release of a vital rescue loan payment, the Greek government has presented emergency legislation to tidy up the last loose ends in its austerity commitments to bailout creditors.

The two legislative acts published Monday must be approved by Parliament within 40 days.

They cover spending cuts and reforms, from increasing state spending accountability to reducing the pensions of Parliament employees – a pampered group of state employees that includes politicians’ relatives.

On Tuesday, finance ministers from Greece’s euro partners are expected to decide whether to release a €31.5 billion ($40.2 billion) loan installment.

Earlier this month, the government passed a new massive austerity program demanded to qualify for the loan.

Finance Minister Yannis Stournaras says Athens has now met all necessary requirements.

Credit Card Debt: Americans cranked up their use of credit cards in the third quarter, racking up more debt than a year ago, while also being less diligent about making payments on time, an analysis of consumer-credit data shows.

The average credit card debt per borrower in the U.S. grew 4.9 percent in the July-to-September period from a year earlier to $4,996, credit reporting agency TransUnion said Monday.

At the same time, the rate of credit card payments at least 90 days overdue hit 0.75 percent, up from 0.71 percent in the third quarter of last year, the firm said.

While higher, the late payment rate is rising from historically low levels. The lowest late payment rate on TransUnion records going back to the mid-1990s was 0.56 percent, set in the third quarter of 1994. More recently, it was at 0.60 percent in the second quarter of last year.

U.S. Futures: Stock futures are rising on strong quarterly earnings from U.S. corporations and optimism that a deal to avoid the so-called fiscal cliff can be reached before Jan. 1.

Dow Jones industrial futures are up 57 points to 12,627. The broader S&P futures have added 7.2 points to 1,367. Nasdaq futures are up 15.5 points to 2,548.50.

Home improvement company Lowe’s said Monday that its third-quarter profit surged 76 percent. That follows a quarterly report from Home Depot last week, which raised its outlook for the year.

Tyson Foods, the country’s largest meat company, easily topped Wall Street expectations Monday for its fourth quarter earnings.

House Democratic leader Nancy Pelosi said over the weekend that she’s hopeful lawmakers can reach a deal on the budget and avoid crippling tax hikes and budget cuts.

The Associated Press contributed to this report.

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Comments (28)

  • jeepmanjr
    Posted on November 19, 2012 at 3:29pm

    Didn’t O’Bummer utter some liberal blather about not sending businesses to China? Well, well…I wonder what happened? GM bailed out with USD and moved to China! Last I checked, upwards of 70% of GM cars are now manu’d outside of the US. But hey, don’t take my word for it: http://www.youtube.com/watch?v=Lvl5Gan69Wo

    Report this comment

    jeepmanjr  
  • lwilli201
    Posted on November 19, 2012 at 3:20pm

    These cars are for the China market. There is no way they could be built in the US and shipped to China because we just do not have the resources to build them here. Even the steel that go into American cars is imported as are many components that go into US cars.

    Report this comment

    lwilli201  
  • Al J Zira
    Posted on November 19, 2012 at 3:15pm

    I guess Baojun in Chinese for Cobalt. It looks like the same car to me. Boy those Chineses are lucky.

    Report this comment

    Al J Zira  
  • truthsurfer
    Posted on November 19, 2012 at 1:59pm

    I could care less about union jobs I am just glad there fewer and fewer. The unions are just an arm of the democrat party laundering money for the DNC. I will never buy a union car period until they are no longer cheer leaders for the Destructive Nasty Corrupt party.

    Report this comment

    truthsurfer  
  • h20sue
    Posted on November 19, 2012 at 1:49pm

    GM is now under federal gov. control and they took business to China? What the he!! is wrong with Obama to allow this to happen? We know he doesn’t have a spine, but now he’s lost his frigging marbles.
    SENDING JOBS TO CHINA ON TAXPAYERS EXPENSE!

    IT’S PAST TIME for American’s to stand up and refuse to do a thing.
    If we could all get together and not work for one day, (and I mean everyone) hospital personel, doctors, nurses, fire, police, truck drivers, department stores close, everything, then maybe Obama would just go ape! He needs to learn a lesson, and I’m affraid marching on Washington Mall just isn’t enough. We all need to stop everything we do for a living in the USA and take one day and do nothing! Imagine what would happen? Everything comes to a complete stop! No phones, no subways, no computer access, nothing!
    We need to revolt and we should have done it when our Ambassador and three other young men were killed in Libya. If we don’t stand up, we’re literally screwed!

    Report this comment

    h20sue  
  • txn4justice
    Posted on November 19, 2012 at 12:48pm

    I will buy a Dodge or Ford, not a GM built in China. Stupid move GM.

    Report this comment

    txn4justice  
  • ZAP
    Posted on November 19, 2012 at 10:53am

    GM didn’t build this,OBAMY and CHINA did……..

    Report this comment

    ZAP  
  • rockymtngal
    Posted on November 19, 2012 at 10:31am

    How many ads did Obama put out about Romney being responsible for sending businesses to China? How many times did Obama stand before crowds of people and say that he, and he alone saved GM & the auto industry? Obama is a perfect example of how to swindle votes by lying. I’m almost convinced that he now believes his lies to be true because he repeats them over and over again. All I can say is “Suckers!”

    Report this comment

    rockymtngal  
  • scrudge
    Posted on November 19, 2012 at 10:30am

    Ah Yes…. g m… we got the union vote… now we will move to china no unions there… the suckers voted for us… NOW WE SPIT ON THEM

    Report this comment

    scrudge  
  • moreteaplease
    Posted on November 19, 2012 at 10:23am

    GM and its partners have invested ¥8 billion ($1.3 billion) in the facility, which will be capable of turning out up to 400,000 vehicles a year.
    ——————————————————-
    Partners = U.S. Government
    ¥8 billion ($1.3 billion) = U.S. taxpayer funding.

    Report this comment

    moreteaplease  
  • sexyvixen21
    Posted on November 19, 2012 at 10:09am

    How many times did obama call Mr. Romney a liar???? I hope everyone gets what they deserve for voting for that UGLY bast@rd. ps- can someone from the blaze investigate what Mr.Romney uses on his skin…..he looks good for 65.

    Report this comment

    sexyvixen21  
  • dublinthewagons
    Posted on November 19, 2012 at 10:08am

    The deatiful thing about building plants in china is hen and if you leave. Everything you built is given to the Chinese government. Same in Mexico. I am sure they will forgive our debt. Lol
    Washington give it away. Give it all away. Our government is run by enemies of the state.
    Elections won’t take back our government. Only thing left is the second amendment.

    Report this comment

    dublinthewagons  
  • flyoverbob
    Posted on November 19, 2012 at 10:03am

    How much are we losing om GM? They must go somewhere to make money,where are the unions on this?
    Maybe as China’s economy tanks because Amerika is broke and can’t buy,they will nationalize the plant.They know our spineless gov won’t interfere.

    Report this comment

    flyoverbob  
  • Infected
    Posted on November 19, 2012 at 10:03am

    Lowe’s made money because they took Spiff away from its sales peope. I for one took a $13,000.00 per year pay cut.

    Report this comment

    Infected  
    • dublinthewagons
      Posted on November 19, 2012 at 10:11am

      Nver fear Obama will have you working for slave labor wages before he’s done.

      Report this comment

      dublinthewagons  
    • HKS
      Posted on November 19, 2012 at 10:17am

      Obame be building his plantation you know.

      Report this comment

      HKS  
    • Cavallo
      Posted on November 19, 2012 at 11:27am

      Just wait until they start making cuts for O-bomb-a-care. Or maybe they already are making cuts?

      Report this comment

      Cavallo  
  • AllLost
    Posted on November 19, 2012 at 10:02am

    So I guess Romney wasn’t lying about GM after all was he. The Dems and their kind are less than dung. Dung has many uses.

    Report this comment

    AllLost  
    • DadRocked
      Posted on November 19, 2012 at 10:17am

      A successful businessman follows the enviroment of his competion. The prepare, conduct, research, study industry/peer group data. Assess risk, probable default and worthiness. Then make action plans and recommendations.

      Sound like bho or Mr. Romney… He saw it coming.

      Report this comment

      DadRocked  
  • Depressed_American
    Posted on November 19, 2012 at 9:56am

    Where’s the condemnation Mr. President Obama???? Wasn’t this one of your talking points again Mr. Romney. Government Motors just sent American Jobs to China. Where’s the indignation??????

    Report this comment

    Depressed_American  
  • Cavallo
    Posted on November 19, 2012 at 9:56am

    Crippling tax hikes? I thought she wanted crippling tax hikes. Oh.. wait.. she only wants crippling tax hikes for those that already pay crippling tax hikes.

    Likely they will reach a deal that will just delay or stretch out the cliff so it doesn’t seem so steep. The bottom will still be the same depth, they just don’t want us to notice the fall.

    Report this comment

    Cavallo  
  • EqualJustice
    Posted on November 19, 2012 at 9:54am

    China? HAHAHAHA Oh, that is classic! So glad BO bailed them out with our money.

    Report this comment

    EqualJustice  
  • GhostOfJefferson
    Posted on November 19, 2012 at 9:50am

    So in essence, taxes to go up for “fiscal cliff” aka government incompetence that we’re going to be forced to pay even more for, credit cards are maxing out and payments are being missed, and of course, GM is sending jobs to China on our dime.

    Forward!

    Report this comment

    GhostOfJefferson  
    • Cavallo
      Posted on November 19, 2012 at 10:07am

      GM and China, two pseudo communist organizations working together. Maybe China can bail out GM when it crashes again soon in the next few years? Maybe that is why GM is moving so much production to China, they don’t have to then have the crippling castrating pension and benefits deals that the UAW infected GM with.

      Report this comment

      Cavallo  

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