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Most Auto Stocks Began Q4 2018 on a Weak Note

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The broader market

Last week, which ended on October 5, the broader market traded on a slightly negative note due to rising bond yields and uncertainties related to a global trade war. That week, the S&P 500 (SPY) benchmark remained negative, falling 1%.

On October 1, US automakers Ford (F) and General Motors (GM) traded positively after news of a new trade agreement with the United States, Canada, and Mexico. But the optimism didn’t last long. Read Why GM and Ford Stocks Are Mixed despite New NAFTA to learn more.

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Auto stock performances

Despite the recent trade agreement called the United States Mexico Canada Agreement, or USMCA, trade tensions between the United States and other countries, including China and the European Union, continue to haunt auto investors.

Last week, mainstream automakers (XLY) Ford and Fiat Chrysler (FCAU) fell 1.4% and 0.7%, respectively. Japanese automakers Honda (HMC) and Toyota (TM) ended the week with losses of 4.1% and 2.3%, respectively. In contrast, General Motors (GM), the largest US automaker, rose 1.3% in the first week of October.

According to data compiled by MarkLines Data Center, September US auto sales fell 6% year-over-year to 1.43 million vehicle units.

Tesla (TSLA) stock ended last week with a 1.1% loss. Going forward, investor expectations for auto companies’ third-quarter earnings could keep auto stocks volatile in the next few weeks.

Series overview

In this series, we’ll find out what drove GM, Ford, FCAU, and Tesla stocks last week. We’ll also look at some key technical levels for these stocks for the week ahead and look at some recent important updates for the auto industry.

Let’s start by looking at Ford’s recent stock movement.

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