General Motors Stock Price jumped 3.8% this morning to a high of 33.41 on the back of exceptional earnings. This has investors buzzing around the stock but at the same time, with their earnings coming in far stronger than expected investors are also concerned this morning.
General Motors Profit More Than Doubled
GM revenue grew 4% to $37.3 billion in the first quarter of 2016, easily beating estimates of $34.9 billion. General Motors saw volumes increase in all major markets including North America and Europe.
Net income for the quarter came in at $2 billion which was more than double the $900 million from the same quarter last year. Earnings per share were $1.24 far ahead of the $1.01 analysts were expecting.
Weekly Initial Unemployment Insurance Claims – Apr 21 2016
The Weekly Initial Unemployment Insurance Claims this morning fell my 6,000 to 247,000 for the prior week. This is now the lowest level since November 24 1973! All of this continues to point to high employment gains which at some point will translate into the Federal Reserve raising interest rates. The consensus among analysts had been for the Federal Reserve to hold on interest rate hikes until probably December. Last week’s Weekly Initial Unemployment Insurance Claims had many analysts moving from December to June as the more likely date for an increase. The numbers today from both the Weekly Initial Unemployment Insurance Claims and now the General Motors Stock Price latest earnings point to an economy perhaps growing more than many analysts estimated.
What the General Motors Stock Price this morning shows at any rate, is that auto and truck sales are booming. Auto sales have long been considered a signal on the economy. With numbers like those this morning from General Motors, the economic picture may not look as dim as many analysts seem to think.
General Motors Stock Price History – 12 Months
The chart below shows the past 12 month of General Motors Stock Price History. The move this morning has the stock rising to a high of $33.41 which places it well within striking distance of the $34 level. From there I would expect the stock to slow heading into the $35 and then $36 valuation. Whether the stock can push back to its 52 week high of $37.45 is still somewhat doubtful.
General Motors Stock Price – Screaming Buy?
The rest of this trade article is for members as I look at the forecast for General Motors Stock Price along with two trades entered this morning.
General Motors Stock Price Jumps – Trade Alerts April 21 2016
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