Money Matters - Simplified

Stocks draft behind GM's IPO

New York -- U.S. stock markets jumped out of the gate Thursday as the New York Stock Exchange welcomed General Motors back into the fold as a public company.

Listed as "GM," the automaker returned to public trading Thursday after undergoing bankruptcy in the summer of 2009 and paring down its assets.
Its initial public offering was on track to fall short of a record, but came close by raising more than $18 billion, The Wall Street Journal reported. In New York, GM was celebrated in lights, with cars parked in front of the New York Stock Exchange and in company T-shirts worn worn over button-down shirts and ties.

Most importantly, share prices rose. GM quickly added 8 percent to $35.63 from its initial share price.

In midmorning trading, the DJIA added 153.97 points, 1.4 percent, to 11,161.85. The Standard & Poor's 500 added 15.61 or 1.32 percent, to 1,194.20. The Nasdaq composite index gained 44.46 or 1.8 percent to 2,520.47.

The benchmark 10-year Treasury note fell 14/32 to yield 2.934 percent.

The euro rose to $1.36 from Wednesday's $1.3515. Against the yen, the dollar rose to 83.53 yen from Wednesday's 83.33 yen.

In Japan, the Nikkei 225 index gained 2.06 percent, 201.97, to 10,013.63, its first close above 10,000 since June.

Copyright 2010 United Press International, Inc. (UPI).

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