GM Stock Continued to Rise Last Week despite Sales Concerns
GM stock in July
Last week, General Motors (GM) stock settled at $36.35 with 4.0% gains from the previous week’s closing price. This was GM’s third consecutive positive week on Wall Street. GM stock is trading with a rise of 4.3% on a year-to-date basis and 4.1% on a month-to-date basis. Now, let’s find out what could be driving the company’s stock higher as it approaches its 2Q17 results.
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GM’s sales concerns
GM sold about 243,155 vehicle units in the US in June 2017, about 4.7% lower than its sales in the corresponding month of 2016. Also, the company’s US retail vehicle sales in June 2017 were at 202,908, down 3.1% as compared to its retail sales in June 2016.
In May 2017, GM reported a 1.3% YoY drop in its US sales, but it managed to report a marginal YoY rise in its US retail sales that month.
In the last few quarters, GM has been able to maintain high profit margins by balancing its US retail and fleet sales. This could be the primary reason why investors are still showing confidence in the company ahead of its 2Q17 earnings results despite recent sales concerns.
Important technical levels
In the final week of June 2017, GM stock violated a key prior resistance level near $34.70, which should continue act as an immediate support going forward. An important resistance price range is between $37.60 to $38.30.
Read on to the next part where we’ll discuss what to expect from Ford stock this week.