Current Issue

PREMIUM CONTENT FOR SUBSCRIBERS ONLY

Retail

Dismal vehicle sales report affects tire stocks

Order Reprints

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).

Related Articles

New vehicle sales are on the rise, says report

Tire stocks surge upwards thanks to pricing, cost factors, says Ludwig

TechForce Report Shows Severity of Vehicle Technician Shortage

You must login or register in order to post a comment.