These 3 Auto Stocks Hover Near Buy Points; India Carmakers Eye Deals
XAutoplay: On | OffThe moves come at the end of busy, news-filled week for the auto sector. Early Wednesday, reports of U.S. monthly auto sales showed Fiat Chrysler had the best October ever for its Ram pickup truck and all-new Jeep Compass SUV, but overall new vehicle sales slumped 13% last month compared with a year ago. Ford and GM had generally strong sales.
Tesla reported mixed Q3 results and Model 3 delays late Wednesday, while Ferrari raised full-year guidance and beat earnings estimates early Thursday. Then midday Thursday, the Republicans unveiled a tax plan that seeks to eliminate tax credits for electric cars. And late Thursday, GM and Ford confirmed that they are cooperating with a federal probe into alleged misspending at training centers for union workers that are funded by automakers, according to Reuters. A similar issue embroiled Fiat Chrysler in July, resulting in charges against two of its former officials and a union official.
Shares of Fiat Chrysler were up 1.6%, at 18.15, in afternoon trading on the stock market today, after clearing an 18.20 buy point off a second-stage flat base earlier in the day. Ford reversed 0.2% lower, to 12.40, after a brief attempt to take a 12.56 buy point off a first-stage, saucer-with-handle base. Ferrari edged up 0.5%, to 117.64, as it tries to retake an 117.92 buy point.
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Meanwhile, GM fell 0.3% Friday to 42.47, heading nearer to a test of support at the 50-day moving average. The stock peaked at 46.76 on Oct. 24 as the largest U.S. automaker crushed earnings views, but has since tumbled 9% off that perch and is on track for its third straight weekly decline.
Tesla was down 0.5% after sinking 6.8% Thursday and 3.2% Wednesday to put it more than 20% below a high reached just a month and a half ago.
Shares of the electric car maker have now breached both the 50-day and 200-day lines, which serve as markers of institutional support for a stock, and are poised for a fourth consecutive weekly loss.