General Motors reported a better-than-expected U.S. sales in December, while Ford made also made its way to the gainers of the day on Wednesday after Tesla Motors announced a disappointing 2016 deliveries.
According to Autodata, the total U.S. sales for 2016 climbed to 17.55 million units from an earlier reading of 17.47 million in 2015, despite anticipations that sales would remain flat or come down off 2015’s high.
December sales hit 18.4 million on an annual basis, topping the estimated value of 17.7 million.
GM Domestic Sales Higher
The automaker’s December domestic sales rose 10% to 319,108, sharply above Edmunds’ estimate of 299,286, mostly led by the company’s Chevrolet division.
Shares of GM climbed about 5.5% to settle at 37.09 during the course of today’s session.
Based on earlier forecasts, General Motors said that it was the "fastest growing full-line automaker in December and in 2016".
"Key economic indicators, especially consumer confidence, continue to reflect optimism about the U.S. economy and strong customer demand continues to drive a very healthy U.S. auto industry," Mustafa Mohatarem, GM's chief economist, said in a statement.
"We believe the U.S. auto industry remains well-positioned for sales to continue at or near record levels in 2017."
General Motors Company stocks added 0.89% to settle at $35.15 amid Tuesday’s session, with share prices changing hands between a range of $34.84 - $35.57. The stock traded with approximately 10.90 million shares, compared to its average daily volume of 13.62 million shares.
The carmaker was threatened by the U.S. President-elect Donald Trump on Tuesday to impose a “big border tax” for making its Chevy Cruze model in Mexico.
GM: Among Most Active Stocks
It seemed that hedge funds to individual investors are turning to social media to watch the figures on which stocks are the most eyed. A concept referred as “crowdsourcing” uses the masses in order to determine emerging market trends.
Crowdsourcing has been used for a long time in the advertising industry, but it has been useful as an investment tool.
Current Stance of General Motors Stocks
The chart below illustrates the General Motors’ stock after President-elect Donald Trump threatened the automaker, citing the making of its Chevy Cruze model in Mexico.
Given a bullish tone of the stock, market participants added General Motors on their watch list after shares sharply rallied in a heavy trading volume in earlier sessions.
Thus, the stock is currently prone to an upward bias as soon as the candle totally breaks out on its next support level of 35.96.
As shares of General Motors are currently in a bullish tone, market players are recommended to wait on the sidelines until share prices move above its resistance level.
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