General Motors (GM) Up 10% This Week

The General, as the company used to be called, General Motors (GM) is up 10% this week. It trades at $34.43. On Monday, it was as low as $31.06.

It is a gravity-defying performance. With home sales still suffering and fuel prices rising, The General marches on.

There has been a lot of action in call options that expire after GM's negotiations with the UAW begin in September. There is also word that the union may be about to settle with GM's former parts unit, Delphi. If workers at the parts company strike over labor issues, GM's production capacity could be hurt.

But, 10%? The UAW has never been very likely to strike Delphi. It would be costly for the union as well as GM. And, if GM is idled, workers there may be hurt over time. No, the UAW is not anxious to walk out.

July crude hit $68 today.

Ten percent is a big number.

Douglas A. McIntyre