Dismal vehicle sales report affects tire stocks
It's amazing how quickly tire stocks can be affected by outside influences, as both Goodyear Tire & Rubber Co. and Cooper Tire & Rubber Co. found out on Tuesday.
Automobile and light truck sales dropped 6% in May, perhaps prompting instant pessimism among stock holders. Goodyear's stock price dropped 3.6% in one day, while Cooper's decreased 2.5%.
Since May 31 -- with Wall Street probably expecting a report that vehicle sales would be poor in May -- Cooper's stock price has dropped almost 10%, Goodyear's 6%.
Vehicle makers, including General Motors Corp. (-$1.80), DaimlerChrysler (-$1.60) and Ford Motor Co. (-$.39) also suffered significant stock price drops on Tuesday, as did auto parts suppliers such as Dana Corp. (-$1.60).
Foreign stocks also suffered the following decreases on Tuesday: Bridgestone (-$.38), Continental (-$.48), Michelin (-$.21) and Pirelli (-$.05).