GE shares at highest level since 2008
General Electric (GE) shares were at their highest level since 2008. The reasons for this were signs of stabilization and improving outlook for the country's economy.
Shares of the Fairfield, Connecticut-based firm rose US$1.09 or 4.6%. GE shares closed at US$24.72. The shares reached a high of US$24.95. This was the highest intraday level that the company reached since September 2008. This was the year when shares plummeted due to a financial crisis.
"Orders in the US were the strongest in some time," said Jeff Immelt, chief executive of GE. The company's second-quarter results were revealed Friday. During the first half of the year, net income rose 6%. GE has higher hopes of better growth in the remainder of the year.
However, this share price improvement indicated a transformation of the company to focus on being an industrial conglomerate. Media, banking, and other non-industrial businesses will be shed off. Analysts seem to be happy with this going back to the roots. "A GE back to its core roots is a very compelling investment story. This is the GE we grew up with," Scott Davis, an analyst at Barclays, wrote.