GM Stock Buyback; GE Aerospace Reports; Elice Drops

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0:16 Let's take a look at some stocks on the move today. I'm Nathan Hager, joined by Bloomberg's Isabel Lee on a mostly down morning. But there are some positive stories to tell as another busy one for earnings. We heard from General Motors this morning, Isabel. And when you hear stock buyback, that gets some attention.

0:37 Good morning.

0:37 Good morning, Nathan. That definitely gets some attention.

0:40 And you're looking at GM shares in pre-market higher, or actually, I don't.

0:44 Know why I'm seeing it.

0:45 It's lower if my terminal is correct by around 5%. Again, if my terminal is correct, but they've raised their full year outlook amid strong aircraft engine demand.

0:55 So this is a sign that air travel.

0:57 Has really yet to retreat despite really high jet fuel prices. So I'm going to check that move again. But for now, we have adjusted earnings. It will be around $ 8 to $ 8. 10 a share. That's higher than previous estimates. And General Electric is the world's largest maker of jet engines. So that's why investors really look to it for any cues on whether this industry will continue to flounder or will keep soaring from here on out. But they're continuing to capitalize on robust demand, for spare parts, maintenance services, and all that. I guess I was right because now we're seeing GE shares little change and start of regular trading.

1:33 The company also does business with GE Aerospace, which also has raised its guidance eight times since January 2024.

1:42 Yeah, okay, so that's General Electric talking about their earnings, but I think you were looking at General Motors with the 5-plus percent decline.

1:53 Yes, that is General Motors.

1:54 The $ 20 billion buyback plus looks like they narrowed their full-year profit outlook, so maybe that's part of the reason why we're seeing that decline in General Motors this morning?

2:05 That is the reason. We're looking at General Motors. This is a Detroit automaker.

2:09 The board on Tuesday approved the new round of buybacks, and this will be funded on an ongoing basis over a multi-year period of time. This is the first share repurchase announcement since the $ 6 billion plan that they disclosed in January.

2:22 And it adds to an.

2:23 Already something like $ 30 billion that they spent buying back shares since 2023. And for the full year, to your point, they raised the low end and cut the high end.

2:33 Of your previous forecast.

2:35 So for 2026, they now see an adjusted EBIT in a range of something like $ 14. 5 billion to $ 15. 5 billion. So yes, that is right. GM is now down something like 5% in pre-market trade.

2:49 So now that we've gotten past the general earnings story, let's talk about what's going on with the AI trade because we got this disappointing IPO for Ellis over in South Korea. And it looks like a lot of stocks are caught up in that this morning.

3:03 Lots of stocks, and one of them is CoreWeave.

3:07 We know that that was the whole topic last week, but for now, it's edging lower by 3% in pre-market trade. Again, neo-cloud shares in general are in the red because of renewed fears on whether the AI boom can justify the billions of dollars being poured in the industry, and the jitters really began to your point. from South Korea, which saw the debut of Elise. This is a data center company flounder. I mean, this is one of the worst ever opening day for a sizable Korean IPO. Shares finished the day, Nathan, with a 32% loss.

3:37 So that jitters spread over to the U.S. market open. I mean, which is in like two and a half hours.

3:44 The Stock Movers Report from Bloomberg Radio. Check back with us throughout the day for the latest roundup of companies making news on Wall Street. And for the latest market-moving headlines, listen to Bloomberg Radio live. Catch us on YouTube, Bloomberg.com, and on Apple CarPlay and Android Auto with the Bloomberg Business app.