Oil Continues To Fall, As Stocks Move UP
Despite the huge fall in oil prices, the shares of automobiles managed to climb up by their biggest margins in the recent months. The oil prices dropped by $10 a barrel in two days but the shares of General Motors and Ford Motor Co. each managed to achieve a profit margin of more than 15 percent after going downwards in the share market in recent weeks.
The stock market drew all its support margin from the huge fall in oil prices, that fell by a combined $10.58 a barrel in last two days. General Motor finished up $1.64 to $11.48 (16.6 percent) a share, while Ford finished up at 18.0 percent per share in the share market.
The declination of oil prices started after the figures of Energy Department showed that the number of domestic inventories of gasoline and crude oil are rising which is exactly the opposite of what some analysts had expected. Recently the price of Light, sweet crude oil declined to $134.60 with a fall of $4.14 a barrel, recorded on the New York Mercantile Exchange.
Shares of General Motors and Ford managed to recover pretty well, despite the threats that were given by credit rating agencies to lower the ratings of these automakers.
General Motors, while re-evaluating its entire business model and making important changes to its spending had already announced that 2008 will be the worst sales year in a decade.
The following suppliers and dealership groups also witnessed gains in their trading at the stock market:
Dealership groups
- AutoNation Inc.: $8.00, up 5.6 percent
- Group 1 Automotive Inc.: $16.19, up 7.3 percent
- Penske Automotive Group Inc.: $12.50, up 5.8 percent
- Sonic Automotive Inc.: $8.89, up 5.9 percent
Suppliers
- Johnson Controls Inc.: $29.61, up 4.0 percent
- Dana Holding Corp.: $6.56, up 7.5 percent
- Lear Corp.: $14.97, up 7.7 percent
