Week ends on sour note as GE shortfall bruises market

The weekend could not come sooner as investors might need a few days off to recover from the blow dealt to deal stocks and the broader market by General Electric Corp.'s shortfall. GE announced on Friday that it did not meet analysts' first-quarter earnings expectations after its CEO in March assured investors it would make its original projections. The news sparked a sell-off, sending GE's shares down $12.79 to close at $32.05 on the day. The Dow Jones Industrial Average suffered as well on the news, as it lost 256.56 points to close at 12,325.42. 

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• Frontier Airlines Holdings Inc. could not blame the broader sell-off for its 69.43% nosedive to close at 48 cents per share. The company on Friday filed for Chapter 11 in U.S. Bankruptcy Court for the Southern District of New York. Frontier attributed its unfortunate financial position to its credit card processor holding back customer receipts.
• Countrywide Financial Corp. may have liked to lay the blame for its 7.72% decline to $5.26 per share on the market swing, but the ailing home lender's problems extend beyond market fluctuations. A federal bankruptcy judge ruled on April 2 that the Department of Justice can investigate whether Countrywide has abused the bankruptcy process in accounting for assets of bankrupt homeowners in western Pennsylvania. The Justice Department has also scheduled public hearings this month in Chicago and Los Angeles on Bank of America Corp.'s pending acquisition of the home lender.
• News of a spinoff of PDL BioPharma Inc.'s biotechnology business accompanied by a hefty $4.25 per share dividend helped insulate the pharma company amid bearish trading as its stock skyrocketed 16.91% to close at $13.69 per share. At least someone can start the weekend on a high note.

 - Michael Rudnick

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