Markets wavered on Monday after U.S. manufacturing data came in higher than expected for September. The Institute for Supply Management said that their national factory reading was up to 59 in October. This was up from the 56.6 recorded in September. The data blew past economist’s expectations of 56.2. Readings that come in above the 50 level show an expansion for the sector.
Shares of Fiat Chrysler Automobiles (FCAU) were sinking after the company reported stellar sales. The company said that sales were up 22%. This marked the highest October on record since 2001. The boost was largely attributed to a growing demand for the company’s pickup trucks. The Ram truck showed sales of 39,834 vehicles, which was 36% higher over this time last year. Chrysler said that they sold 140,083 total vehicles last month. Reid Bigland, head of U.S. sales for Chrysler, said, “Chrysler Group sales increased 22 percent in October, our eighth month of double-digit growth this year and our 55th consecutive month of year-over-year sales gains. Chrysler Group is the industry’s fastest-growing automaker driven in part by sales of our all-new Jeep Cherokee and Chrysler 200 mid-size sedan, and by the strong consumer demand for our award-winning Ram pickup trucks.”
Continuing with auto sales data, shares of General Motors (GM) were sinking after the company reported a rise 0.2% in sales when compared to this time last year. Total vehicles sold came in at 222,819. Sales of the companies Encore vehicle were up 32.7%, while the Buick brand was up 6.5%. Cadillac sales fell 8%. Sales of the company’s Escalade were up 30%. GM reported that average vehicle sale price posted a record $34,700 last month. This was up $2,200 over this time last year. Kurt McNeil, U.S. vice president of sales operations for GM, said, “The U.S. economy has steadily improved all year and now we are poised for a stronger expansion backed by an improved job market, higher consumer confidence and lower fuel prices. We have a strong hand to play, with the industry’s newest and most complete line-up of pickups and SUVs.”
That’s all for today,
Warren Gates, Normandy Research