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Stupid Stock move of the day! GM

May 23, 2012: 2:09 PM ET

Stocks are plunging today because of worries about Europe and the global economy. You wouldn't think that would be great news for car companies, arguably one of the most economically sensitive businesses out there. Yet, shares of Ford (F) and GM (GM) were both up in mid-afternoon trading.

I think it makes sense for Ford to be up though. Moody's upgraded the company's debt to investment grade status. It's the second of the three agencies to do so, joining Fitch. As a result, Ford was able to reclaim its iconic Blue Oval logo and other assets back that it had pledged as collateral back in 2006 when it agreed to take out a massive line of credit.

That move allowed Ford to stay out of bankruptcy. GM, as you probably recall, did not. And GM, unlike Ford, is still languishing in junk bond territory. GM also isn't paying a dividend again yet. Ford is. So on a day when nearly all cyclical stocks are down, it seems silly that GM is benefiting from news that's only good for its rival, and not the whole sector.

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Paul Lamonica
Paul R. La Monica
Assistant Managing Editor, CNNMoney

Paul R. La Monica is an assistant managing editor at CNNMoney. He is the author of the site's daily column, The Buzz, and also tweets throughout the day about the markets and economy @LaMonicaBuzz. La Monica also oversees the site's economic, markets and technology coverage.

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