Perhaps it's speculation about the impact higher oil prices will have on the auto industry or maybe it's just a case of the group following the broader market lower. Either way, the Trucks and Auto Stocks Index is tumbling 0.5% despite a bullish profit update from one of the sector's marquee names.
General Motors (NYSE:GM), the largest U.S. car company, reported a fourth-quarter profit of $510 million, it's best quarterly profit in over a decade, but that hasn't been enough to prop up the stock as the shares are lower by 5%. General Motors said it was able to boost U.S. market share during the quarter. Rival Ford Motor (NYSE:F) is responding with a 2% drop of its own.
Surprisingly, Toyota Motor (NYSE:TM) is fractionally higher (now down as of 2:09 PM EST) after the Japanese auto giant said it will recall nearly 2.2 million vehicles because of safety issues with gas pedals. India's Tata Motors (NYSE:TTM) is lower by 5% as investors are avoiding Indian equities once again.
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But in comparison to other models, I would like to buy one Toyota first.
ReplyDeleteIt is also a fact that Toyota captured the current market very well.