- Pre-Market Indications

Monday, June 2, 2008

Opening View: Toyota Motor Could Slash U.S. Outlook, General Motors Rises

Checking in on currencies and commodities, the dollar is on the rise once again this morning, with the U.S. Dollar Index up 0.17% at 73. Meanwhile, gold futures are also trading higher, with the August contract up $1.70 at $893.50. Finally, crude futures are off sharply in electronic trading, with the July contract down $1.39 at $125.98 per barrel.

Turning to equities, data released at this weekend's annual meeting of the American Society of Clinical Oncology revealed that ImClone's ( IMCL: View sentiment for IMCLsentiment, chart, options) Erbitux drug doesn't get a response in some colorectal cancer patients and that adding it to Genentech's (DNA: View sentiment for DNAsentiment, chart, options) Avastin also doesn't help colorectal cancer patients. Elsewhere, Acorda Therapeutics (ACOR: View sentiment for ACORsentiment, chart, options) shares climbed nearly 30% in electronic trading after a positive Phase III trial of a multiple sclerosis drug.

In automaker news, Toyota Motor (TM: View sentiment for TMsentiment, chart, options) is reportedly considering lowering its U.S. sales forecast due to a worsening outlook for pickup trucks and SUVs, according to the Financial Times. Katsuaki Watanabe, Toyota's president, told the Times that while the company hoped to make up for the lost truck and SUV sales this year by selling more smaller cars, he was "not sure" this would be enough to offset the drop in large vehicle sales. "As of now we haven't changed our original annual plan yet, but we may have to scale back," Watanabe said.

Shares of Toyota competitor and Detroit darling, General Motors (GM: View sentiment for GMsentiment, chart, options) rose in pre-market trading after a Barron's article postulated that the stock could rise to $30 per share or even $45 once big cost reductions lift earnings in 2010. "And if the stars align perfectly -- the economy enjoys a second-half uptick and the housing market and consumer confidence turn for the better sooner than expected -- the stock's rebound could be quicker. Even a small improvement in sentiment could bring a disproportionate rise in the stock," the article said.

Opening View: Toyota Motor Could Slash U.S. Outlook, General Motors Rises

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