Finances

General Motors Co. (GM), an auto manufacturer, reported its fourth quarter and annual results on February 14.

General Motors reported quarterly revenue of $39.3 billion and annual revenue of $152.3 billion. These figures represent an increase from last year's fourth quarter and annual revenue of $38 billion and $150.3 billion, respectively.

The company reported quarterly net income of $900 million and annual net income of $4.9 billion. The fourth quarter net income amount represents an increase over the same period last year when the company reported net income of $500 million. The annual net income figure represents a decrease from last year's net income of $7.6 billion.

"We recorded another solid year in 2012 as we grew the business, delivered a third straight year of profitability and took significant actions to put the company on a solid path for future growth," said Dan Akerson, Chairman and CEO. "This year our priorities will be executing flawless new vehicle launches, controlling costs and delivering more vehicles to our customers at outstanding value."

General Motors Co. (GM) shares ended the week at $27.76.

Comcast Reports Fourth Quarter and Year-End 2012 Results

Comcast Corporation (CMCSA), a provider of cable and television services, reported its quarterly and fiscal year 2012 earnings on February 12.

Comcast reported quarterly revenue of $15.94 billion and year-end revenue of $62.57 billion. These figures represent an increase from the same periods last year when the company reported quarterly and annual revenue of $15.04 billion and $55.84 billion, respectively.

The company also reported quarterly operating income of $3.3 billion and annual income of $12.2 billion. These figures both represent an increase from the same periods last year when the company reported quarterly and annual operating income of $2.9 billion and $10.7 billion, respectively.

Brian L. Roberts, Chairman and CEO of Comcast, said, "I am really pleased to report strong results for the 4th quarter and the full year of 2012 and delighted that we are able to accelerate the acquisition of General Electric's 49% common equity interest in NBCUniversal while also having the financial strength to return capital to shareholders. To underscore our confidence, we are increasing our dividend by 20% and plan to repurchase $2 billion of our stock this year. Our businesses have real momentum and we continue to benefit from our focus on operational excellence and to leverage all of our content and technology platforms to expand the entertainment choices we offer consumers. Cable's fourth quarter and full year results demonstrate consistent improvement in customer metrics and growth in every product, led by High-Speed Internet. NBCUniversal's results principally highlight the improving performance of our broadcast businesses. Our ongoing investments in programming, technology and new products are driving innovation and supporting this strong performance. As we begin 2013, our scale in distribution and content, combined with our focus on execution and innovation, provides many opportunities to continue to build value for our shareholders."

Comcast provides cable, Internet and telephone services to both residential and commercial customers in 40 states and the District of Columbia.

Comcast Corporation (CMCSA) shares ended the week at $41.24.

Goodyear Tire Reports Fourth Quarter and Year-End Results

Goodyear Tire & Rubber Company (GT), a maker of tires, reported its quarterly and year-end results on February 12.

Goodyear reported quarterly sales of $5 billion and year-end sales of $21 billion. These figures were lower than last year's fourth quarter and year-end sales of $5.55 billion and $22.8 billion, respectively.

The company also reported quarterly operating income of $272 million and annual operating income of $1.2 billion. The quarterly figure represents an increase of 39% from the same period last year when the company reported operating income of $165.9 million. The year-end figure represents a decrease from last year's operating income of $1.32 billion.

"We feel very positive about the progress made in our North American, Latin American and Asia Pacific businesses in 2012 and are confident in our ability to continue delivering improved profitability," he said. "As a result of our view of continued weakness in the European economy and its effects on the auto and tire industries, we are reducing our 2013 segment operating income expectation and are taking actions to ensure long-term competitiveness in the region."

Goodyear Tire was founded in 1898 in Akron, Ohio and was named after Charles Goodyear who invented vulcanized rubber in 1839.

Goodyear Tire & Rubber Company (GT) shares ended the week at $14.10.

The Dow started the week at 13,993 and closed at 13,982. The S&P 500 started the week at 1,518 and ended at 1,520. The NASDAQ started the week at 3,194 and finished at 3,192.

Treasurys fell on Friday, continuing a weekly decline. The fall indicated a weak reaction to the release of economic data regarding U.S. industrial production and the Empire State manufacturing index.

Yields on 10-year notes rose four basis points to 2.04% early Friday, driving down prices. The yield on 10-year notes has risen seven basis points during the week. As of late, the yields on 10-year notes have remained confined between a low of 1.9% and a high of 2.0%.

The yields on the 30-year Treasury bond rose four basis points to 3.21% while the yields on the 5-year note rose three basis points to 0.89%.

Treasurys appear to show little impact from recently released U.S. industrial data. Industrial production fell 0.1% in January compared to gains of 1.4% and 0.4% in November and December of last year. Treasurys also registered little change after the Empire State index, a measure of manufacturing in the New York region, showed an improvement in manufacturing activity for the first time in seven months. The index was 10 in February compared to a negative 7.8 in January.

"There doesn't seem to be a lot of volatility in the Treasury market. It isn't reacting all that much to data," said Mike Materasso, Senior Vice President and Co-chair of Franklin Templeton's fixed-income policy committee. "There's probably a little bit of re-shifting of investors within these [yield] ranges," Materasso said.

Fiscal policy negotiations in Washington, D.C. continue to loom over Treasurys and could have an impact on yields in the future as investors move toward the quality and security Treasurys provide.

The 10-year Treasury note yield finished the week at 2.01% while the 30-year Treasury note yield finished the week at 3.18%.

Freddie Mac released the results of its weekly Primary Mortgage Market Survey (PMMS) on February 15. The results showed fixed mortgage rates unchanged from the previous two weeks, remaining near record lows and supporting housing demand.

The 30-year fixed rate mortgage averaged 3.53% this week. This number was unchanged from last week. Last year at this time the 30-year fixed rate mortgage averaged 3.87%.

The 15-year fixed rate mortgage averaged 2.77% this week, which was unchanged from last week. One year ago, the 15-year fixed rate mortgage averaged 3.16%.

Frank Nothaft, Vice President and Chief Economist at Freddie Mac said, "Mortgage rates remain near record lows and continue to support housing demand, translating into a pick-up in home prices in most markets. The median sales price of existing homes rose 10% between fourth quarter 2011 and 2012, the largest year-over-year gain in seven years. Among large metropolitan areas, 88% saw positive annual increases in the fourth quarter, compared to 81% in the third quarter and 75% in the second. The largest gains occurred in Phoenix (34%), Detroit (31%) and San Francisco (28%)."

The money market fund finished this week at 0.5%. The 1-year CD finished at 0.6%.