Sponsored By:

AMR Adds By Subtracting — Wednesday’s IP Market Recap

American Airlines plans to cut 13,000 jobs

   

IPMarketRecap AMR Adds By Subtracting    Wednesday's IP Market RecapSome of Wednesday’s biggest market news actually came on the job front, as AMR Corp.’s (PINK:AAMRQ) American Airlines announced a plan to lay off thousands in an attempt to emerge from bankruptcy, and reports about possible Microsoft (NASDAQ:MSFT) cuts surfaced.

American Airlines said Wednesday that it would cut about 15% of its work force — some 13,000 jobs — in an attempt to save about $1.25 billion a year in labor costs. The company will cut about 4,600 jobs from maintenance alone, and the Transport Workers Union said it expects many of those jobs will be outsourced overseas, a common practice among the nation’s other major airlines.

American Airlines also hopes to save money through a shift in pension benefits and aircraft efficiencies. AAMRQ stock finished Wednesday trading sharply down, losing more than 11% to finish at 60 cents per share.

Also Wednesday, a report from Seattle television affiliate KOMO-TV (via Barron’s) said Microsoft is prepared to make “significant layoffs” in restructuring. Microsoft lost about 7% of its value in 2011, though MSFT shares are off to a hot start in 2012, gaining 15% in a month.

Amazon (NASDAQ:AMZN) stock was down about 8% after a day’s worth of marinating on Tuesday’s gloomy earnings report. The company’s revenues increased but came up well short of estimates, profits dropped by almost 60%, and Amazon laid out a weak forecast for its first-quarter earnings.

Three Up

  • Seagate Technology (NYSE:STX): Up 20.8% ($4.39) to $25.53.
  • Whirlpool (NYSE:WHR): Up 13.5% ($7.32) to $61.64.
  • Marathon Petroleum (NYSE:MPC): Up 9.6% ($3.66) to $41.88.

Three Down

  • Renren (NASDAQ:RENN): Down 9.7% (54 cents) to $5.01.
  • Exco Resources (NYSE:XCO): Down 8% (63 cents) to $7.23.
  • Arm Holdings (NASDAQ:ARMH): Down 2.9% (83 cents) to $28.05.

Kyle Woodley is the assistant editor of InvestorPlace.com. As of this writing, he did not hold a position in any of the aforementioned securities. Check out recaps from previous trading days here.


Article printed from InvestorPlace Media, http://investorplace.com/2012/02/amr-corp-american-airlines-jobs-microsoft-amazon/.

©2014 InvestorPlace Media, LLC

Comments are currently unavailable. Please check back soon.