This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Is 2013 the Year of the Pickup Truck?

An improved housing market benefits the auto industry in three ways, economist Lacey Plache said on the Tuesday conference call. One is that "truck sales and housing starts are closely correlated (because) as construction work increases, workers will replace their aging trucks." The average age of the U.S. truck fleet is 10.4 years, while the useful life of a truck is estimated at 15.5 years, Edmunds said.

Additionally, rising housing values create a "wealth factor that is translated into auto sales," and refinancing, driven by lower interest rates, is providing U.S. homeowners with average monthly savings of $210, which can be allocated towards a new car payment.

Meanwhile, Nesvold said expectations of a new F-150 rollout helped to fuel the rally in Ford shares at the end of 2012. In December, Ford shares rose 12%, GM rose 10% and the S&P 500 rose marginally. The chief factor in the rise of the two automakers was the government's decision to sell its remaining GM shares," he said. "The GM rally dragged Ford shares higher."

In addition, "there's been a bias against Ford in the market by some investors," based on the theory that GM will benefit more from the cyclical housing improvement than Ford will because of its new Silverado, Nesvold said, adding, "To some degree, the F-150 concept might ease this perceived overhang on Ford."

-- Written by Ted Reed in Charlotte, N.C.
2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
F $11.59 1.22%
GM $28.68 0.49%
YHOO $27.05 -3.29%
AAPL $95.01 1.05%
FB $99.75 -4.15%


Chart of I:DJI
DOW 16,027.05 -177.92 -1.10%
S&P 500 1,853.44 -26.61 -1.42%
NASDAQ 4,283.7530 -79.3910 -1.82%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs