Summary: The leading automakers are scheduled to report monthly auto sales on Friday, June 1. The top sales data and analytics providers suggest that the major auto manufacturers are poised to deliver the best month in more than a year thanks to a broad economic recovery, ease of credit, pent-up demand for newer vehicles, and reduced incentives. Toyota Motor (NYSE:TM) is expected to show the biggest y/y increase as more of its plants in Japan return to full capacity following the March 2011 earthquake and tsunami.
- A report from Edmunds.com shows demand for light vehicles was robust in May, with approximately 1.391 mln cars sold during the month, up 17.5% from the previous month and a year-over-year increase of 31.1%.
- Truecar.com estimates that all major auto manufactures will deliver double-digit sales growth for May.
- According to a report on Kelley Blue Book, May 2012 sales are seen growing 30% y/y, the biggest one-month gain in more than 12 months, thanks to a recovery in economic growth, demand for new automobiles, and improved access to credit.
Ford Motor (NYSE:F) Expected Release Time: 9:30 a.m. EST
Overview: Ford is scheduled to report May sales at approximately 9:30 a.m. EST. While the company is seen posting robust year-over year double-digit increases, market share is seen slipping as Japanese competitors Toyota and Honda return to production levels not seen since the March, 2011 earthquake.
Technical Review: Since trading at a recent high of $12.75 (early April), Ford recently completed a bullish "Double-Bottom" using the May 2012 and December 2011 lows near $10. The shares are now sitting on support at the 20-Day SMA near $10.50. Resistance is at the recent highs near $10.80, followed by $11.00. (Chart courtesy of StockCharts.com)
TrueCar.com: 10.5% (Source: Truecar.com)
Edmunds.com: 16.3% (Source: Edmunds.com)
Kelley Blue Book: 9.40% (Source: KBB.com)
General Motors (NYSE:GM) Expected Release Time: 10:00 a.m. EST
Overview: General Motors is due to report its May sales at approximately 10:00 a.m. EST. Truecar.com estimates that GM is poised to deliver its strongest sales report since September 2008, based on solid pent-up demand and newer vehicle sales.
Technical Review: Despite the elevated expectations on the sales front, GM shares are struggling to hold the 20-Day SMA near $22. Support below this level is the recent low near $21.00, with downside risk to $20.00. Resistance is near $23.00, followed by the 20-Day & 200-Day SMA crossover near $22.50. (Chart courtesy of StockCharts.com)
TrueCar.com: 16.7% (Source: Truecar.com)
Edmunds.com: 11.4% (Source: Edmunds.com)
Kelley Blue Book: 10.9% (Source: KBB.com)
Toyota Motor (TM) Expected Release Time: 1:30 p.m. EST
Overview: Toyota Motor will post its monthly sales report between 1:00 p.m. and 2:00 p.m. According to Edmunds.com, Toyota is seen posting a year-over year comp of close to 90% as the country rebounds from the March 2011 earthquake and tsunami. The report also showed the market share position is expected to rise 4.5% y/y. Strong sales of the Camry and the Prius are expected to boost May 2012 sales.
Technical Review: While Toyota is seen delivering one of its best comps on record, the market may have priced in much of the good news. The shares are hovering above key support near $76.00, with stiff resistance at the 20-Day SMA near $78.00. (Chart courtesy of StockCharts.com)
TrueCar.com: 90.8% (Source: Truecar.com)
Edmunds.com: 89.5% (Source: Edmunds.com)
Kelley Blue Book: 94.5% (Source: KBB.com)
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
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