Investors Still Loving Ford (F); Bounce Abjures Toyota (TM)
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Ford Motor (NYSE: F) shares are moving fairly well this afternoon, along with other automakers, as declines in crude prices are leading investors back into the stock.
Ford is still down about 23% since the start of February, when turmoil and calls for the resignation of Egypt's President Mubarak were in full swing. Most recently, uprising in Libya, the world's 13th largest producer of crude oil, has caused shares to slip even further as an increase in oil prices will cause consumers to tighten their purse strings and demand for new vehicles will drop as that is the easiest luxury to drop. The same thing happened in 2008 - 09 following the rapid spike in crude prices (though, admittedly, the environment isn't quite the same now).
Today's pullback in crude is related to the earthquake in Japan creating fears of a dampening in demand. In addition, the Saudi "Day of Rage" proved uneventful so far.
Ford shares haven't traded at this price level since October last year, when shares hit $14.47 intraday on October 26, 2010.
Smart investors shouldn't fear, however, as a pullback in the stock should have been natural following comments from Chief Alan Mulally about willing to cede market share rather than offer incentives to draw in buyers.
Additionally, today's retail sales report from the U.S. Commerce Department showed that auto dealers saw a 2.3% sequential increase in sales for February, and 23.8% increase from February 2010.
Ford is trading 2.7% higher this afternoon. Notably, General Motors (NYSE: GM) is up 0.48% and Toyota (NYSE: TM) is down 2.4% today.
Ford is still down about 23% since the start of February, when turmoil and calls for the resignation of Egypt's President Mubarak were in full swing. Most recently, uprising in Libya, the world's 13th largest producer of crude oil, has caused shares to slip even further as an increase in oil prices will cause consumers to tighten their purse strings and demand for new vehicles will drop as that is the easiest luxury to drop. The same thing happened in 2008 - 09 following the rapid spike in crude prices (though, admittedly, the environment isn't quite the same now).
Today's pullback in crude is related to the earthquake in Japan creating fears of a dampening in demand. In addition, the Saudi "Day of Rage" proved uneventful so far.
Ford shares haven't traded at this price level since October last year, when shares hit $14.47 intraday on October 26, 2010.
Smart investors shouldn't fear, however, as a pullback in the stock should have been natural following comments from Chief Alan Mulally about willing to cede market share rather than offer incentives to draw in buyers.
Additionally, today's retail sales report from the U.S. Commerce Department showed that auto dealers saw a 2.3% sequential increase in sales for February, and 23.8% increase from February 2010.
Ford is trading 2.7% higher this afternoon. Notably, General Motors (NYSE: GM) is up 0.48% and Toyota (NYSE: TM) is down 2.4% today.
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