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.
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.
Even hedge fund manager Doug Kass, known for successful short selling ideas, is bullish on Ford and GM.
Not a member yet?Sign up now for a free account
|Wells Fargo will be fined $1 billion|
|China's ZTE fires back over US ban: 'We cannot accept it'|
|Men say they were arrested within minutes after arriving at Philadelphia Starbucks|
|Oops! Deutsche Bank accidentally sent a $35 billion payment|
|From witness stand, AT&T chief details new $15-a-month streaming service|