GE Stocks Rally in a Gloomy Market

October 13, 2008 · By Kalyani Mukherjee Filed Under Investing Tagged as: GE, Stock market

Stocks of General Electric Co rose by 13% in New York trading as the company’s third quarter profit matched forecast by analysts despite a financial climate riddled with chaos and panic.

The rise in the value of GE stocks is the greatest in the last 28 years and owes to the company’s positive performance in the third quarter period. GE sales increased by 11% to $47.2 billion in the last quarter. However profits from continuing operations declined by 12% from last year’s $5.11 billion or 50 cents a share to $4.48 billion or 45 cents a share. The announcement of its third quarter results and the fact that they met estimates by analysts pushed GE stocks up by $2.49 to $21.50 at 4:15 p.m in the New York Stock Exchange.

GE Co. is more than a hundred years old and based at Fairfield, Connecticut. It has interests in a wide spectrum of sectors and its products range from light bulbs to power plant turbines and financial services. This year, GE earned the major part of its earnings from its energy, technology as well as NBC Universal businesses. However the crisis prevailing in US credit markets have given rise to investor concerns about the health of the company’s finance units under GE Capital.

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