Auto Sector Stocks Fall on Goldman Downgrade

Magna International Inc. (MGA) shares fell to a 52-week low on Thursday after Morgan Stanley cut its estimates on the Canadian-based auto parts supplier as part of a larger report in which the U.S. bank downgraded its 2008 U.S. auto industry sales forecast. Magna shares rallied a bit, but were still down almost 2% early Thrusday afternoon.

Lear Corp. (LEA) and Superior Industries International (SUP), also suppliers to U.S.-based carmakers, had their estimates cut as well. Shares in Lear and Superior are both down 3% during yesterday's trading.

Meanwhile, General Motors Corp. (GM) shares fell as much as 9% to its lowest level in nearly two years, and Ford Motor Co. (F) was down as much as 5%, representing a 16-year low for the company's stock.

In the report, Morgan Stanley cut its earnings per share forecast for GM from a profit to a loss and increased its loss estimate for Ford.