Sell The News In General Motors

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

General Motors Company GM shares are trading higher by $1.55 (5.7 percent) at $31.85 in Thursday's session. That is the good news; the bad news is that it is well off its high of the day that was made off the open at $32.70.

The catalyst for the uncharacteristic move was a huge Q2 beat for EPS ($1.29 vs. $1.08 estimates), with lower sales ($38.2 billion vs. $40.62 billion).

For now, the Street is focusing on the EPS beat. After surging in the premarket, the issue opened at $32.66 and rallied only another $0.04 to $32.70 before sharply reversing course.

The ensuing decline took GM all the way to $31.40, which is still far above Wednesday's range (high of $30.52) before rebounding back to the $32 level.

GM has not closed above $32 since July 7 when it ended the session at $32.86. The following day, it shed nearly $2 on no specific news.

Posted In: TechnicalsIntraday UpdateMoversTrading IdeasPremarket outlook
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