This Could Be What’s Keeping GM Stock Positive
Last week (ended November 3), General Motors’ (GM) stock settled at $42.66, with minor gains of about 0.8% from the previous week’s closing price. In the previous week, it fell 5.2%—the highest weekly loss for the company’s stock in the past year.
In October, GM continued its journey upward, ending the month with ~6.4% gains on Wall Street. Previously, September 2017 the company’s stock gained ~10.5%, compared with the 4.0% rise seen by the S&P 500 Index (SPY).
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In October 2017, GM’s US sales fell 2.2% YoY (year-over-year). The company reported a 6.6% YoY drop in its US market retail sales. On the positive side, the company managed to report a ~17% US retail market share for the third-straight month in October. This consistent strong retail market share could be one of the things keeping positive sentiments alive for GM stock.
Last month, GM announced its 3Q17 earnings results. The company reported adjusted earnings of $1.32 per share in 3Q17, compared with adjusted earnings of $1.72 per share in 3Q16. Analysts had estimated ~$1.15 per share. While GM’s market share rose, its revenues fell, and profit margins fell slightly.
In its 3Q17 earnings event, GM’s management emphasized plans to launch two new EVs (electric vehicles) over the next year and a half.
Key technical levels
On the day of its 3Q17 earnings release, October 24, GM stock posted an all-time high of ~$46.76, which is likely to act as a key resistance level in the near term. An immediate resistance could be seen near $44.60.
On the downside, an immediate support level lies near $41.50. Only a violation of this support could trigger renewed selling in the stock.
Continue to the next part for a look at how Ford stock traded last week.