|Bid||31.12 x 800|
|Ask||31.25 x 900|
|Day's Range||31.31 - 31.31|
|52 Week Range||30.33 - 41.40|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||1.04|
|Expense Ratio (net)||0.70%|
Here, we analyze the performance of certain ETFs with exposure to some major U.S. Automobiles industry players post their earnings releases.
Just a few days after the Trump administration lifted tariffs on $200 billion worth of Chinese goods from 10% to 25% on May 10, China announced a retaliatory move. This puts these sector ETFs and stocks vulnerable.
President Trump has once again threatened to raise tariffs on Chinese goods. The renewed trade tensions put these ETF areas in focus.
The U.S. auto industry saw a rough start to 2019 with a slowdown in the first quarter given higher interest rates, rising vehicle prices and threat of global slowdown.
Though February's retail sales declined and missed market expectations, there are some winning corners. Play those areas with these ETFs and stocks.
General Motors Co.’s profits dropped 8 percent during the fourth quarter as weaker sales in China hurt an otherwise strong sales showing in the United States. Despite this, GM shares were up 1.27 percent as of 11:30 a.m. ET. GM cited strong pricing on pickup trucks and crossover SUVs in North America as key drivers in sales.
China’s central bank, the People’s Bank of China (or PBoC), announced on January 4, 2019, that it will cut the reserve requirement ratio (or RRR) of Chinese (FXI) banks by 50 basis points on January 15 and a further 50 basis points on January 25. To stimulate demand in the slowing economy, China’s central bank cut the RRR four times in 2019. Prior to the central bank’s decision to cut the RRR, China’s premier Li Keqiang has urged the central bank to cut the reserve requirements.
These sector ETFs and stocks should give solid performance in the coming days thanks to upbeat jobs data for the month of December.
Though the U.S. auto industry faced tough times given higher interest rates, rising vehicle prices and threats of global slowdown in 2018, it proved resilient by registering another year of strong sales.
Automobile company stocks and car-related exchange traded fund pulled ahead Tuesday as China takes steps to reduce tariffs on U.S. automakers. Strengthening the global auto industry, China moved to cut import tariffs on American-made cars to 15% from the current 40%, Bloomberg reports. Shares on a number of global automakers, including Ford Motor, General Motors, BMW, Volkswagen and Daimler, among others, gained speed on the announcement.
One often-cited reason for the current market volatility and the reason for expected pressure on companies’ earnings is trade uncertainty, especially between the United States (SPY) and China (FXI). While the markets weathered the first two rounds of tariffs from the United States (IVV) (VTI) with relative resilience, the third round was quite inclusive and led to business and consumer sentiment deteriorating. The third round of tariffs on $200 billion in Chinese goods could go up to a 25% tariff at the beginning of 2019.
Another factor impacting the US (SPY) growth outlook is the unfolding of the trade war between the US (SPY) (DIA) and China (FXI). The US has already imposed three rounds of tariffs on Chinese imports covering a total of $250 billion worth of imports, which have been met with tit-for-tat tariffs from China. The latest round of 10% tariffs on $200 billion of Chinese goods could go up to 25% at the beginning of 2019. Moreover, Trump has talked about bringing another $267 billion worth of Chinese imports under tariffs as well. ...
Automaker stocks and car-related ETFs revved up as China considers halving its auto purchase tax to bolster its struggling automobile industry in the wake of the ongoing U.S. trade war. Among the better performing automakers, General Motors (etftrends.com/quote/GM) was up 2.7% and Ford Motor (NYSE: F) jumped 4.3% after both falling off more than 20% this year. CARZ includes a 8.0% position in GM and 7.6% in F.
It's no secret that automakers' stocks have been hit especially hard this year. Brewing troubles in the global auto industry have been exacerbated by U.S.-led threats of new auto tariffs and looming trade wars. While stocks of fabled automakers like Ford Motor Company ( F) have been on a general decline for several years now, the global auto industry has seen a sharp downside reversal that only started at the beginning of this year.