General Motors Rallying Off Strong Earnings Beat

Joel Elconin is the co-host of Benzinga's #PreMarket Prep, a daily trading idea radio show.

General Motors Company GM shares were trading higher by $1.88 (5.6 percent) at $36.86 in Tuesday's session. The rally was initiated when the company reported stronger-than-expected earnings for the fourth quarter.

The company reported quarterly net income of $1.1 billion, or $0.66 per share, compared to $900 million, or $0.57 per share in the year-ago period. Value investors also took notice of the increase in its quarterly dividend from $0.30 to $0.36 per share.

General Motors has been the recipient of a sympathy move (rally or decline in price based on news specific to another similar company) when Ford Motor Company F announced better-than-expected earnings last week. Before Wednesday's release, General Motors had rallied from $33.16 to $33.98.

So far the rally has been capped at $35.86, but it should be noted is trading just off its highs for the session. If the rally continues, there may be some formidable resistance in the area of its trio of highs near the $36.40 level.