US Sales Drive General Motors Stock Higher
General Motors stock
Last week (ended September 1), General Motors (GM) stock settled at $37.36, rising 4.9% from the previous week. It was the second week of optimism for GM stock after five weeks of decline. In the previous week, GM had risen ~2.2%. As of September 1, GM stock had risen ~7.0% quarter-to-date and 7.2% year-to-date.
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GM’s August sales
According to Autodata, GM’s US sales rose by ~7.4% YoY (year-over-year) in August 2017 with the help of a 16.5% rise in truck sales. However, small car sales fell 13.2% YoY in August. According to 2016 sales volume, GM was the largest automaker (IYK) in the US market, ahead of Fiat Chrysler (FCAU), Toyota (TM), and Ford Motor (F).
In July 2017, GM’s total US sales fell sharply, by 15.3%. US retail sales fell 14.4% in July. In the second quarter, GM’s adjusted EPS (earnings per share) stood at $1.89, up 1.6% from its EPS of $1.86 in 2Q16. They also beat analysts’ EPS estimate of $1.74. However, General Motors’ lower North American revenue acted as a negative factor in 2Q17, and the company’s global sales volume fell ~2.0%.
Key technical levels
Last Friday, GM stock rose past the resistance level of ~$35.70, which should now act as an immediate support level. On the upside, its key resistance level lies near $38.20. In the next part, we’ll find out what drove Ford stock higher last week.