As shares of GE (GE) jumped up today, the number of skeptics about the balance sheet of the firm’s financial unit seemed to go up.
GE was up almost 20% at one point during the day, but according to the AP, .”Analyst C. Stephen Tusa Jr. of J.P. Morgan Securities Inc. reiterated a “Neutral” rating for the Fairfield, Conn.-based company. Tusa said GE outlined several new risk factors for its finance unit that he said are “unsurprising given the environment, but new nonetheless.”
AP updated and corrected its story
¶ HARTFORD, Conn. (AP) _ Shares of General Electric Co. soared Tuesday, along with the broader market as an analyst said the industrial and financial conglomerate may benefit from a quicker-than-expected recovery in financial markets.
¶ Analyst C. Stephen Tusa Jr. of J.P. Morgan Securities Inc. reiterated a “Neutral” rating for the Fairfield, Conn.-based company.
¶ In a note to investors, he also said GE is “showing additional strength” in its infrastructure businesses.
¶ However, he said the businesses, which include big-ticket products such as water treatment and energy systems, could be hurt by the weakening economy. In addition, Tusa said GE could feel the impact of the global financial crisis on earnings at its financial arm, which represents about 30 percent of profits.
¶ And GE’s aviation business also could be weighed down by the slump in the commercial airline industry, Tusa said.
¶ Shares jumped $1.35, or 18.2 percent, to $8.76 in afternoon trading. Meanwhile, the Dow gained nearly 300 points, or 4.6 percent, as investors cheered upbeat news from Citigroup.
Douglas A. McIntyre
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