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General Motors: Why It Rose on August 22

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Price movement

General Motors (GM) has a market cap of $49.3 billion. It rose by 0.13% and closed at $31.87 per share on August 22, 2016. The stock’s weekly, monthly, and YTD (year-to-date) price movements were 0.03%, -0.90%, and -3.9%, respectively, on the same day. General Motors is trading 1.7% above its 20-day moving average, 5.3% above its 50-day moving average, and 3.4% above its 200-day moving average.

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Related ETFs and peers

The Guggenheim Multi-Asset Income ETF (CVY) invests 0.94% of its holdings in General Motors. CVY tracks the Zacks Multi-Asset Income Index. The index aims to outperform the Dow Jones US Select Dividend Index using US stocks, ADRs (American depositary receipts), REITs, MLPs, CEFs, preferred stocks, and royalty trusts. CVY’s YTD price movement was 9.7% on August 22.

The iShares Russell 3000 ETF (IWV) invests 0.19% of its holdings in General Motors. IWV tracks a cap-weighted index that measures the investable US equities market, covering the entire market-cap spectrum, including micro-caps.

The market caps of General Motors’ peers are as follows:

  • Toyota Motor Corporation (TM) – $198.8 billion
  • Ford Motor Company (F) – $48.9 billion

Latest news 

In a press release on August 22, 2016, Reuters reported that “General Motors Co. on Monday asked a Texas judge to throw out a lawsuit over a fatal 2011 crash blamed on a faulty ignition switch, accusing plaintiffs and their lawyers of fabricating evidence about the vehicle’s key during the ongoing trial.”

It also noted that “According to a GM court filing, plaintiffs Zachary Stevens and his parents and their lawyers showed jurors in Harris County court a key attached to a chain containing several other items, claiming it was the one used to drive the 2007 Saturn Sky involved in the crash.”

General Motors already recalled 2.6 million vehicles in 2014 due to a defect in ignition switches. It also warned that extra weight on key chains can cause the switches to slip out of position.

It added that “The company asked the judged to either dismiss the case altogether or to inform jurors about the allegedly false statements with instructions to disregard them.”

Sales in July 2016

General Motors’ sales performance in July 2016 was as follows:

  • General Motors reported total sales of 267,000 units—a fall of 1.9% from July 2015
  • GM reported retail sales of 236,000 units—a rise of 5.0% from July 2015
  • Chevrolet reported total sales of 179,000 units—a fall of 5.3% from July 2015
  • GMC reported total sales of 51,000 units—a rise of 4.8% from July 2015
  • Buick reported total sales of 23,000 units—a rise of 10.4% from July 2015
  • Cadillac reported total sales of 14,000 units—a rise of 1.3% from July 2015

Among the company’s segments, commercial sales rose by 1%, government sales rose by 1%, and small business sales rose by 4% YTD. Daily rental deliveries fell by 42.0% in July 2016.

The sales in China are as follows:

  • General Motors and its joint ventures reported total sales of 271,000 units—a rise of 18.0% from July 2015
  • Cadillac reported total sales of 8,757 units—a rise of 90.0% from July 2015
  • Buick reported total sales of 89,000 units—a rise of 30.0% from July 2015
  • Baojun reported total sales of 44,000 units—a rise of 61.0% from July 2015
  • Wuling reported total sales of 98,000 units—a rise of 6.0% from July 2015
  • Chevrolet reported total sales of 30,000 units—a fall of 15.0% from July 2015

In the next part, we’ll take a look at J&J Snack Foods (JJSF).

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