Swine flu spooks travel stocks; GM ends Pontiac, cuts 21,000 jobs
CBS
Transcript
Fear of the swine flu outbreak spread to Wall Street. Investors dumped airline, cruise line, and hotel stocks after health officials said people should avoid traveling to affected areas of Mexico and the US. Traders are worried the swine flu will spread like the SARS epidemic that ravaged Asia back in 2003. The Dow Industrial slid 51 points, while the NASDAQ composite lost nearly 15. It is the end of the road for the Pontiac. General Motors is phasing out the 83y old name plate in a bid to stay alive. The automaker will also cut 21,000 jobs and slash 40% of its dealers. GM is also asking the government to take more than half its stock in exchange for half its debt, which means taxpayers would own a significant stake in GM. Wall Street applauded the steps, sending shares soaring more than 20%. Chrysler has cleared two major hurdles in its bid to survive. It's reached a tentative agreement on concessions with the United Auto Workers and it's one ratification of its cost cutting deal with Canadian auto workers. It is down to the wire for both automakers. Chrysler faces an April 30th deadline to come up with a viable business plan or file for bankruptcy. GM has until June 1st. For more business headlines, log on to cbsmoneywatch.com. In New York, I'm Alexis Christopherus.