GM topped third quarter earnings estimates as demand continues to stay strong.
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00:00I'm Conway Gittins reporting from the New York Stock Exchange. Here's what we're watching on the street today.
00:04Investors have turned cautious as lending rates remain elevated and Wall Street moves into the thick of earnings season.
00:10Verizon slightly missed earnings forecasts. The company cited a 10 percent drop in upgrades during the third quarter.
00:17Higher interest rates may have scared consumers away from buying a new, more expensive phone.
00:24Turning now to other business developments, labor negotiations are under the microscope after several higher-profile strikes,
00:30including dock workers, Boeing machinists, Hollywood actors, and Detroit autoworkers.
00:35Pay is usually at the center of the dispute. Workers want more, the company wants less.
00:41Quarterly numbers out of General Motors are adding some color to the discussion.
00:45Just one year after a costly walkout, General Motors is on the road to posting record profits.
00:52The company's adjusted earnings for the third quarter jumped $3.4 billion from $3.2 billion.
00:57And for the first nine months of the year combined, GM pocketed just under $10 billion.
01:03Things are going so well, GM raised its profit outlook for the year for the third time.
01:09It now expects a measure of profitability to come in between $14 billion to $15 billion for 2024,
01:16putting it on track to eclipse the record profit it saw in 2022.
01:21And these higher profits are thanks to higher sales. Revenues rose in the third quarter, hitting $48.8 billion.
01:29The average North American selling price per vehicle is running ahead of last year.
01:34That sales rate is enabling GM to cover the additional labor costs it agreed to after workers went on strike in 2023.
01:42It agreed to pay an 11 percent raise and boost pay by another 14 percent spread over four years.
01:49A year after the strike and with sales in the tens of billions of dollars,
01:54GM's CFO said there's, quote, no regrets over the UAW contract.
02:00That'll do it for your daily briefing from the New York Stock Exchange. I'm Conway Gittins with The Street.