In the week ended August 18, General Motors’ (GM) stock settled at $34.83 with a 0.3% decline from the previous week’s closing price. In the second week of August, GM fell by about 1.0% on Wall Street. This was the fifth consecutive week that GM slipped.
As of August 21, GM stock was trading without any change on a year-to-date basis and with a 0.3% drop on the quarter-to-date basis. Let’s find out why the company’s stock remained mixed last week.
No key updates after July sales figures
Earlier in August, GM released its July US sales figures. These figures suggested a significant drop of 15.3% in its total US sales including about a 14.4% decline in July US retail sales. With this, GM’s total US sales have fallen 3.8% on a YTD basis.
In 2Q, GM reported adjusted earnings of $1.89 per share, up by about 1.6% from its adjusted earnings of $1.86 per share in the same quarter of last year. Analysts were estimating GM’s second quarter earnings per share to be at $1.74. Despite a positive trend in GM’s 2Q earnings, its lower North America revenues reflected pessimism. Similarly, the company’s global sales volume also fell by about 2.0% during the quarter.
Key technical levels
In the first week of August, GM stock tested an important support price level near $34.70 and turned positive from there in the following sessions. This price level near $34.70 could continue to act as a key support going forward. On the upside, $36.50 is likely to act as an immediate resistance level.
Continue to the next part where we’ll see how Ford stock traded last week.