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

Quick Take: Auto Sales Drive Market Higher

NEW YORK ( TheStreet) -- Strong sales in June were another step in the the automakers' recovery, and TheStreet's Debra Borchardt is with Keith Bliss offering a deeper examination on how the recovery in the auto sector is affecting the overall economy.

While U.S. indices were indecisive about which direction to go, auto sales released throughout the morning have provided an upside bias. Ford (F) posted huge numbers, with June sales up 13.4%, above the 11.7% estimate from analysts.

While General Motors (GM) had a lower bar to hurdle, the company still posted one of its best sales months since 2008.

As Borchardt pointed out, the Ford F-Series pickup trucks have been the leader of the resurgent sales in 2013. But the price tags on these units are bigger than the trucks themselves, which suggests that consumers finally have confidence to go out and spend.

Bliss confirmed the idea, adding that he just bought a car and picked it up yesterday. He thinks auto sales will likely continue to outperform for the rest of 2013 and into 2014.

The auto industry is a lot like the housing industry due to its trickle-down effect. When sales are strong, the automakers have a lot of companies building supplies and parts for them, which in turn makes those companies more profitable.

While the effect of auto sales on the gross domestic product is unknown at this point, it should have a positive effect should the seasonally adjusted annual rate (SAAR) stay in the 15 million-17 million units range.

Bliss added that higher auto sales continue to "speak well" for the overall growth of the economy and its trajectory.

-- Written by Bret Kenwell in Petoskey, Mich. .

Bret Kenwell currently writes, blogs and also contributes to Rocco Pendola's Weekly Options Newsletter. Focuses on short- to intermediate-term trading opportunities that can be exposed via options. He prefers to use debit trades on momentum setups and credit trades on support/resistance setups. He also focuses on building long-term wealth by searching for consistent, quality dividend paying companies and long-term growth companies. He considers himself the surfer, not the wave, in relation to the market and himself. He has no allegiance to either the bull side or the bear side.

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
AAPL $93.74 0.00%
FB $117.58 0.00%
GOOG $693.01 0.00%
TSLA $240.76 0.00%
YHOO $36.60 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs