How Auto Stocks Are Trading during the 3Q17 Earnings Season
During the week ended November 3, the broader market traded on a mixed note and the S&P 500 benchmark (SPY) witnessed a minor rise of 0.3%. The stocks of automakers Ferrari (RACE), Honda (HMC), and Ford (F) outperformed the broader market.
During the week, the stock prices of Fiat Chrysler, Honda, and Ford rose 5.8%, 6.3%, and 2.5%, respectively. In contrast, General Motors (GM) and Tesla (TSLA) ended the week in negative territory with losses of about 5.2% and 4.6%, respectively.
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3Q17 earnings season
The auto industry’s 3Q17 earnings season has nearly ended, and most mainstream automakers have reported their results in the last couple of weeks. Legacy auto companies GM, Ford, and Fiat Chrysler reported YoY (year-over-year) increases in their 3Q17 earnings. On the other hand, Tesla reported its largest quarterly loss in 3Q17.
In October, investors’ high expectations from US auto companies’ 3Q17 results, including GM and Ford, drove their stocks higher. However, uncertainties about Fiat Chrysler’s progress toward its 2018 targets kept these stocks mixed. FCAU stock fell 3.1% in October, and GM and Ford rose 6.4% and 2.5%, respectively.
According to Autodata, US auto sales in October 2017 fell 1.3% YoY after rising ~6.1% YoY in September. Higher demand from the hurricane-affected areas could be a key reason for solid September US auto sales (XLY), as residents of these areas sought to replace their damaged cars.
In this series, we’ll see how mainstream auto companies traded in the week ended November 3. We’ll explore the key updates that came in for auto stocks in the last few weeks. We’ll also take a closer look at some key technical levels for these auto stocks.
Next, we’ll begin by looking at GM’s recent stock price movement.