Last week (ended June 8), the broader market traded positively, and the S&P 500 rose 1.6%. On June 9, Donald Trump tweeted about the possibility of raising US tariffs on automobile imports from Canada. Nonetheless, auto stocks continued to inch up on June 11, supported by the broader market rallying ahead of the US-North Korea summit in Singapore. Continued strong US demand for trucks and SUVs and a recent decline in crude oil prices could be some other factors driving optimism toward auto stocks in June. Let’s take a closer look.
Auto stocks in June
General Motors (GM) and Ford (F), the two largest US automakers (XLY), rose 2.4% and 3.3%, respectively, last week, while motorcycle pioneer Harley-Davidson (HOG) rose ~4.8%. US electric vehicle maker Tesla (TSLA) and Italian luxury carmaker Ferrari (RACE) rose 8.9% and 2.6%, respectively.
In contrast, Italian-American auto giant Fiat Chrysler FCAU) was pressured and fell 1.9%, possibly due to uncertainty about Fiat Chrysler’s future leadership. As of June 11, TSLA and GM had gained the most among auto stocks in the second quarter, rising 24.8% and 23.4% so far.
In this series, we’ll find out how auto stocks have traded in the last few weeks and look at some important updates for the auto industry. In the next part, we’ll begin by looking at GM’s recent stock price movement.