US Auto Sales Healthy, but Slowing
Ford (NYSE:F), Nissan, General Motors (NYSE:GM) and Toyota (NYSE:TM) all reported US sales declines in April,signs that demand for cars, trucks and SUVs is starting to slow after 7 straight years of growth.
Ford’s sales fell 7.2%, dragged down by car sales that tumbled over 21%.
Nissan sales dropped 1.5% as SUV demand could not overcome slowing car sales.
General Motors sales were down 5.8% as strong performances from some SUVs and the Cruze compact car could not offset falling pickup truck demand.
Toyota reported a 2% sales decline for the month as healthy sales of the RAV4 small SUV were overcome by falling demand for the Camry and Corolla.
Industry analysts expect April sales to be down anywhere from 2 to 4%, but still run at a healthy annual rate of around 17.1-M vehicles.
Most major automakers reported sales figures Tuesday.
Kelley Blue Book says it looks like 2017 US sales will fall short of last year’s record 17.5-M for the first annual sales drop since Y 2009.
While sales still are healthy, automakers are offering deals to compete for a piece of the shrinking pie. But there are signs that the industry is relying too heavily on incentives. Pickup trucks were the only segment in which automakers offered fewer deals.
Tuesday, the major US stock market indexes finished at: DJIA +36.43 at 20949.89, NAS Comp +3.76 at 6095.35, S&P 500 +2.84 at 2391.17
Volume: Trade on the NYSE came in heavy at 1.07-B/shares exchanged.
- NAS Comp +13.2% YTD
- S&P 500 +6.8% YTD
- DJIA +6.0% YTD
- Russell 2000 +3.1% YTD
|HeffX-LTN Analysis for DIA:||Overall||Short||Intermediate||Long|
|Neutral (0.17)||Bullish (0.27)||Neutral (0.15)||Neutral (0.10)|
|HeffX-LTN Analysis for QQQ:||Overall||Short||Intermediate||Long|
|Bullish (0.31)||Neutral (0.21)||Bullish (0.46)||Bullish (0.25)|
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