Stocks Edge Lower as GM Bankruptcy Looms

Yesterday's rally took a pause as investors mulled over the implications of a possible bankruptcy filing by General Motors.   Meanwhile, oil prices rose to a 6-month high above $63 a barrel.  The Dow slipped 4 points to 8468 while Nasdaq lost 6 points to 1743.

On the upside

LED lighting company Cree (Nasdaq: CREE) raised its revenue and profit targets for the 4th quarter due to a surge in sales.

Bank of America (NYSE: BAC) raised another $5.9 billion by converting preferred shares to common stock.  The bank has raised $26 billion out of $33.9 billion in capital needed to boost  its reserves.

On the downside

General Motors (NYSE: GM) edged closer to bankruptcy after a Tuesday midnight deadline for bondholders to swap debt for stock passed without enough participation to satisfy federal restructuring guidelines.
Staples (Nasdaq: SPLS) posted higher revenues and lower quarterly earnings pared by higher costs.  Same-store sales for the office supply retailer fell in North America.
Monsanto (NYSE: MON) lowered its 2009 earnings outlook.  Analysts promptly downgraded the agricultural products maker.
Shares of Zale (NYSE: ZLC) lost ground after the company reported a quarterly loss that missed expectations.  Same-store sales fell sharply for the jeweler.

In the broad market, declining issues outpaced advancers by a margin of nearly 5 to 4 on both the NYSE and on Nasdaq. The Russell 2000 which tracks small cap stocks lost 2 points to 498.