The Buzz
Ford and GM rev up after earnings
October 31, 2012: 1:12 PM ET
Both Ford and GM posted stronger-than-expected earnings, despite a drag on European sales.
Ford and GM rallied Wednesday after both automakers topped third-quarter earnings forecasts, despite soaring losses in Europe.
Shares of Ford (F) climbed more than 5%, as the company's record profit of $2.3 billion in North America helped offset its $468 million loss in Europe, bringing losses in Europe so far this year to just over $1 billion.
Meanwhile, General Motors (GM), the largest U.S. automaker, reported a third-quarter profit that trounced analysts' estimates. Though profits fell sharply in Europe and North America for GM, its international unit, which includes operations in China, improved. In fact, GM once again sold more cars and trucks in China than in the United States in the period.
StockTwits traders remain fairly bullish on the Detroit automakers even though Europe remains a mess.
TwoSmuth: Any head count reductions in Europe = bullish RT @Opinterest: $GM Announces 2,600 Headcount Reduction in Europe // #ratsfleesinkingships
In an effort to stem the losses in Europe, Ford said it would close three plants and cut 6,200 jobs Europe by 2014. But it also warned it would not be profitable there until the middle of the decade.
ToddSullivan: GM, Ford say sales will be pinched http://t.co/g2HaYR5y IMO in Q4 yes....but lots of cars wrecked for Q1/2 buys $F $GM
ValueOnly: $F's earnings are great despite Europe. Market has yet to notice Ford's earnings generate zero cash taxes. Great cash flow, momentum. Bullish
Even hedge fund manager Doug Kass, known for successful short selling ideas, is bullish on Ford and GM.
DougKass: My largest ind. exposure is in the carmakers - F and GM. 3Q EPS (especially domestic profits) reported yesterday and today support thesis. $F
DRLamar: Euro profit mid decade = brand, product & operating efficiencies. BELIEVE! US snappin up F trucks. Warriors need horses $F That was corny.
macroQmicro: Made in America! Ford has best-ever 3rd quarter results as North America picks up slack Europe http://t.co/ptOPz6b3 $F
-
Consumers on 'auto' pliot. But can solid car sales last?
Stocks were flat Wednesday morning and one reason was the disappointing retail sales report for May. (Traders may have also been transfixed by JPMorgan Chase (JPM) CEO Jamie Dimon on Capitol Hill.) But if you dig behind the scary headline numbers, i.e. that sales were down for a second-straight month, you'd notice two key (and related) things. Gas prices are lower and auto sales are up.
The sharp decline in gas MORE
Paul R. La Monica - Jun 13, 2012 1:15 PM ET -
Stupid Stock move of the day! GM
#StupidStock move of the day! $F deserves to be up because of Moody's upgrade. But $GM riding coattails on day like today? Seems odd to me.— Paul R. La Monica (@LaMonicaBuzz) May 23, 2012
Stocks are plunging today because of worries about Europe and the global economy. You wouldn't think that would be great news for car companies, arguably one of the most economically sensitive businesses out there. Yet, shares of MORE
Paul R. La Monica - May 23, 2012 2:09 PM ET
- Don't sweat Japan's stock plunge(1:07)
- Diamonds are forever: Zale soars(0:51)
- Herbalife soars. Get Bill Ackman a vitamin?(1:01)
- Will Tumblr make Yahoo cool again?(1:16)
- No life of luxury: Nordstrom stock falls(0:52)
- Kohl's is the anti Wal-Mart(1:03)
- Nothing runs like a Deere (investor)(1:16)
- Who says video game stocks are dead?(1:22)
| 4 federal agencies to shut Friday | ||
| Mailbox comes to the iPad | ||
| Wall Street weathers the storm | ||
| Chrysler jabs Tesla over loan repayment | ||
| 6 things you don't know about the Xbox One. (Really) |
