U.S. Markets closed

GE Rises to 2019 High, Extending Gain After 75% Collapse

Esha Dey and Bailey Lipschultz

(Bloomberg) -- General Electric Co. rallied mid-afternoon Thursday to touch the highest level in more than a year despite a mixed tape for the broader market.

The stunning rebound in GE means it’s risen 45% since the bombshell allegations of accounting fraud against the company in mid-August from prominent financial examiner Harry Markopolos. The turn in investor sentiment was bolstered by GE’s third-quarter results when GE raised its cash-flow forecast for 2019 in the face of both tariff headwinds and pressures on the jet-engine business caused by the grounding of Boeing Co.’s 737 Max.

The Boston-based company was among the top performers in the S&P 500 Index, which remains on track to extend its worst three-day stretch since early Oct. Thursday’s 2% rise for GE continues its comeback from a decade low last December. The conglomerate’s now worth about $101 billion -- still a far cry from a 2000 peak of almost $600 billion.

GE collapsed 76% in the two calendar years 2017-2018, falling to a little more than $7 from more than $30.

To contact the reporters on this story: Esha Dey in New York at edey@bloomberg.net;Bailey Lipschultz in New York at blipschultz@bloomberg.net

To contact the editors responsible for this story: Catherine Larkin at clarkin4@bloomberg.net, Scott Schnipper

For more articles like this, please visit us at bloomberg.com

©2019 Bloomberg L.P.