Why Auto Stocks Started 2017 with a Bang


Nov. 20 2020, Updated 5:29 p.m. ET

Auto companies’ 2016 sales

All mainstream automakers except Honda Motor Company (HMC), including General Motors (GM), Ford Motor Company (F), and Toyota Motor (TM), have reported falls in their 2016 US sales. However, investors reacted to these data in a positive manner on January 4, 2017.

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Auto stocks climbed

On the day of mainstream automakers’ December and 2016 US sales data release, auto stocks traded on a positive note despite mixed sentiments in the broader market (SPY). On January 4, 2017, the S&P 500 Index rose ~0.6%, much lower than the gains seen in the majority of mainstream automakers’ stocks.

During the same session, GM and Ford, the two largest US automakers, rose ~5.5% and 4.6%, respectively. Fiat Chrysler (FCAU), the Italian-American auto giant, rose ~1.4% during the session. Fiat Chrysler’s dismal December sales could be the primary reason for its underperformance during the session.

Japanese automakers Toyota and Honda ended the session on a positive note, too. Toyota’s and Honda’s stocks rose ~2.2% and 3.6%, respectively, on January 4. Both auto giants reported strength in their December US sales.

Series overview

In this series, we’ll take a look at the December 2016 and full year 2016 sales figures of mainstream automakers Ford, GM, Fiat Chrysler, Toyota, and Honda. We’ll also try to understand what these figures could mean for auto investors going into 2017.

Read Your General Motors 2016 Holiday Highlights, Holiday Highlights: All You Need to Know about Ford’s 2016, and Year-End Review: Is Rally in Fiat Chrysler Stock Justified? to learn more about mainstream automakers’ 2016 highlights.

Read on to the next article to learn about Ford’s December sales.


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