During the week ended November 3, General Motors (GM) stock settled at $42.34 with ~5.2% value erosion from the previous week’s closing price. This was the highest weekly loss for the company’s stock in the last one-year period. In the previous week, GM stock fell 2.1%.
In October, GM continued its journey upward and ended the month with about 6.4% gains on Wall Street. In September 2017, the company’s stock also gained ~10.5% against the 4.0% rise by the S&P 500 Index (SPY).
GM’s 3Q17 results
On October 24, GM announced its 3Q17 earnings results. The company reported adjusted earnings per share (or EPS) of $1.32 in 3Q17 compared to adjusted EPS of $1.72 in 3Q16.
Analysts previously estimated the company’s EPS to be ~$1.15. While GM’s market share rose in 3Q17, its revenues fell and its margins shrunk.
During the 3Q17 earnings event, GM’s management reiterated plans to launch two new electric vehicles (or EVs) in the next 18 months. This would be the beginning of GM’s plan to add at least 20 EVs to its product line by 2023.
GM’s US sales fell 2.2% year-over-year in October, which was worse than the industry average. This could be one of the key factors that drove the negative sentiment last week.
Key technical levels
During its 3Q17 earnings release on October 24, GM stock posted an all-time high near $46.76, which should act as a key resistance level going forward. An immediate resistance could be seen near $44.60 in its stock.
On the downside, GM’s immediate support level lies near $40.60. Any violation of this support could trigger renewed selling in the stock.
In the next part, we’ll see how Ford stock traded last week.