By Todd McDonald, Analyst
Summary: The leading U.S. automakers are expected to post monthly sales on Monday, June, 3. Analysts are looking for an increase in sales of approximately 6%, compared with the year ago period. The anticipated strength can be partly attributable to Memorial Day Weekend discounts and an increase in pickup truck sales, which tend to correlate with the housing market. A stabilization of automotive sales will also allow the major firms to more accurately plan operations, which will improve the companies' respective bottom lines.
Overview: Ford Motor's (F) hybrid sales have already surpassed its prior full-year record in the first 5 months of 2013. Crossovers have also been a popular option, according to KBB.com, due to new offerings such as the Ford Escape, along with reasonable gasoline prices. Truecar.com, in particular, is looking for a very strong month for Ford.
Technical Review: Ford's shares have significantly outperformed the broader market gauges, rising over 50% in the past year, versus the S&P 500's increase of just under 30%. The RSI is currently at an overbought reading of almost 80, which could suggest upside is limited in the near term. $16 is longer-term resistance, dating back about two years. Initial support is near $15, then $14.50.
TrueCar.com: 20.1% (Source: Truecar.com)
Edmunds.com: 15.0% (Source: Edmunds.com)
Kelley Blue Book: 8.7% (Source: KBB.com)
Overview: General Motors (GM) According to a post on StreetInsider.com, Goldman Sachs reiterated its Buy rating on General Motors after the last earnings release, citing improving margins, international expansion, and the firm's $19 bln in cash. GM also offers a solid lineup of pickups, which are expected to have a solid month.
Technical Review: General Motors' shares have also outperformed the S&P 500, rising about 55% and 30%, respectively. Longer-term resistance at $33 has been surpassed, leaving only the $44 all-time high as the only reference point to the upside. The RSI is at an overbought reading near 73. If results disappoint, look for initial support near $34, followed by a potential gap-fill near $33.
TrueCar.com: 8.5% (Source: TrueCar.com)
Edmunds.com: 5.2% (Source: Edmunds.com)
Kelley Blue Book: 5.6% (Source: KBB.com)
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