Late Market Update

General Motors Co is planning for an Initial Public Offering (IPO) to sell 20% of the Treasury’s stake in the automaker. The IPO will result in the US becoming a minority owner. After the IPO, the Treasury Department’s stake will be reduced to less than 50% from the current stake of 61%. The IPO could be registered in August, aiming for a sale in November. The sale is likely to raise more than $10 billion. Shares of Goldman GS and Morgan Stanley MS were down after Barclays Capital lowered its earnings estimates for the companies. Roger Freeman, a Barclays Capital analyst, has also reduced his price target for GS from $195 to $175. According to the analyst, both the firms faced tough market conditions during Q2. The analyst adds, "Financial market conditions have deteriorated notably since 1Q10, evidenced by sharply wider credit spreads, cash-derivative basis, declines in structured finance indices, sharply higher volatility and a 'flight-to-safety' trade in less risky assets.” The US Treasury Department sold 5-year notes worth $38 billion today, at a yield of 1.995%. Indirect bidders, consisting foreign central banks, purchased 34.6%, down from 42.4% in recent sales. Direct bidders, including domestic money managers, bought another 10.7%, lower than the average of 13.2%. After the auction, the broader bond market stayed higher after the auction. Yields on 10-year notes fell 0.85%. Read more from Benzinga's Markets.