After a disappointing jobs report came out, with the market falling along with its release, Tuesday’s auto sales data were one of the few strong points in the U.S. market. Ford, General Motors and Toyota carried the blue chips through the day after beating analyst expectations. Even with a poor jobs report, when Monday’s ISM data is combined with the auto report, it points to an improving economy [see S&P 500 Visual History].
The total vehicle sales report, compiled by Motor Intellegence, came in slightly above analyst expectations after a disappointing May report. Coming in at 15.3 million sales in June, analysts were surprised after the massive jump in sales after May only brought in 14.9 million. June’s numbers are back in line with 2013′s previous reports. Forecasters are already speculating sales for July after June’s unexpected recovery, expecting to hold sales steady if not increase slightly
Consider the trailing six-month auto sales data below and note the recovery we have seen since May [see also Companies Increase Dividends: ETFs To Play]:
Automotive ETFs Performance Recap
Amid mixed market data and investors speculating over the eventual rise of interest rates, the auto industry has fought back to regain early loses. Consider the six month performance of the only pure automotive ETF, the NASDAQ Global Auto Index Fund (CARZ, C+), versus the broad market as represented by the ETF, SPY:
CARZ spent the majority of spring slumping along under the returns of the general market, even taking a dive in early April. But when U.S. markets turned up in May, CARZ really took off for a bit, before stumbling back. The end of June saw strong gains for the automotive ETF, and these gains are likely to continue after Tuesday’s strong economic report.
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Disclosure: No positions at time of writing.