More Economic Bad News–This Time, for the Auto Industry–Sure to Slap Tech Stocks Today
by Kara Swisher
Posted on December 12, 2008 at 2:36 AM PT
After the Senate effort to forge a package to help the ailing U.S. auto industry collapsed yesterday, one can expect that the stock market will give up gains made in recent days.
And, inevitably, that will include stocks for the tech industry, whose shares have rallied this past week.
Google shares, which have recently crossed back above $300 of late, for example, were already seeing pre-market declines this morning, as European and other markets crashed on the bad news about U.S. politicians rejecting an effort to hand over $14 billion to automakers.
Thus, Google (GOOG) stock was down over one percent in pre-market trading.
Yahoo (YHOO), which has been nicely trending up into the $13 range, also is getting smacked, down almost three percent in pre-market trading.
And so on:
Amazon (AMZN) down one percent to $47.85.
Microsoft (MSFT) down one percent to $19.27.
Intel (INTC) down 1.4 percent to $13.82.
Apple (AAPL) down one percent to $94.
You get the idea–Silicon Valley is still in no way immune from the econalypse.
Please see this disclosure related to me and Google.
Comments
No, that can’t be right! The Auto bailout only affects over paid union members. All those who called the GOP Senator’s offices with threats of riots if they bailed out Auto; knew it would not affect them. That 10, 20 maybe 30% more of their 401K will disappear today. No that can’t be right. Say it ain’t so.
Posted by Jeff Stevens at December 12th, 2008 at 3:43 ambottom line is the US auto makers make terrible, inferior products that break down easy and just don’t have much quality in them
I owned a Chrysler Sebring once and even the dealer couldn’t find out what was wrong with it, after me spending $2,000 to try and find out… I ended up selling the car for $400… yep, $400. Which is less than the tires cost.
Why? because the Sebring was a money pit and broke down all the time, many times on busy highways where you could get killed by speeding traffic
So it was me or the Sebring.
I will NEVER buy a US made car again. They are krap.
Honda, Toyota, etc. (even those made in US) are well made.
So Detroit, you blew it with your krap product.
We taxpayers shouldn’t bail you out for your lousy products.
If any local business fails it cannot apply to Uncle Sam for a freebie. Why should the Big 3 US automakers get a freebie at taxpayer expense?
Let ‘em fail. They can sell their corporate jets and find something else profitable to do.
Posted by Sam Harrison at December 12th, 2008 at 12:46 pmI have to agree with Mr. Harrison, and will never buy another car from one of the American firms.
It’s just like PanAm and TWA in the airline industry — they pissed away their legacy and they are now a footnote in American history.
There’s no stopping the inevitable when all the stakeholders are trapped by their own denial. Let GM, Chrysler and Ford follow their destiny and die — since you can’t reverse their longstanding culture of mediocrity.
New auto manufacturers will take their place, and earn the right to serve consumer transportation needs.
Posted by David H Deans at December 13th, 2008 at 8:11 am