General Motors shares gain for the first time in 8 sessions on Tuesday, President-elect Trump tweets ”big border tax” for GM’s production in Mexico
Yesterday, in a statement posted on Twitter, US President-elect Donald Trump warned that a “big border tax” might be imposed on General Motors Company in relation with production of its Chevrolet Cruze model in Mexico. In a response, the S&P 500-featured vehicle manufacturer said its Cruze production in Mexico was a part of a strategy to serve clients internationally.
General Motors shares closed higher for the first time in the past eight trading sessions on Tuesday. The stock went up 0.89% ($0.31) to $35.15, with the daily high and the daily low being at $35.56 and $34.84 respectively. In addition, the daily gain has been the steepest one since December 9th. In the week ended on January 1st the shares of the vehicle manufacturer lost 2.38% of their market value compared to a week ago, which marked the third consecutive period of decline. However, the stock advanced 0.90% in December to log its second straight month of gains. For the entire 2016, General Motors shares added 2.44%.
”General Motors is sending Mexican made model of Chevy Cruze to U.S. car dealers-tax free across border. Make in U.S.A. or pay big border tax!”, Donald Trump warned through his Twitter account.
These comments added to a series of tweets, which target companies in relation with jobs, imports and costs before the President-elect takes office later in January.
In a statement on its website General Motors responded that it ”builds the Chevrolet Cruze hatchback for global markets in Mexico, with a small number sold in the U.S.”
The third largest automaker worldwide said that about 190 000 Cruze vehicles were sold in the United States in 2016. 185 500 sedan variations of the Cruze, which were sold in the United States, were actually assembled at the company’s plant in Lordstown, Ohio, while 4 500 hatchback variations of the Cruze were built in Mexico and then sold in the United States.
In 2015 General Motors said it would invest as much as $350 million in the production of Chevy Cruze at its plant in the Mexican state of Coahuila. It was intended to be a part of a $5 billion investment in plants throughout Mexico, which the automaker announced in 2014.
According to a publication by Automotive News, the NYSE-listed company initiated production of its Cruze model in Mexico in 2016, with total output being 52 631 vehicles. At the same time, 319 536 cars of the same model were produced in the United States. All prior variations of the Cruze, which were sold in Mexico, were manufactured at a General Motors’ plant in South Korea, according to the same media.
Daily and Weekly Pivot Levels
With the help of the Camarilla calculation method, today’s levels of importance for the General Motors stock are presented as follows:
R1 – $35.22
R2 – $35.28
R3 (Range Resistance – Sell) – $35.35
R4 (Long Breakout) – $35.55
R5 (Breakout Target 1) – $35.79
R6 (Breakout Target 2) – $35.89
S1 – $35.08
S2 – $35.02
S3 (Range Support – Buy) – $34.95
S4 (Short Breakout) – $34.75
S5 (Breakout Target 1) – $34.51
S6 (Breakout Target 2) – $34.41
By using the traditional method of calculation, the weekly levels of importance for General Motors Company (GM) are presented as follows:
Central Pivot Point – $35.15
R1 – $35.62
R2 – $36.41
R3 – $36.88
R4 – $37.36
S1 – $34.36
S2 – $33.89
S3 – $33.10
S4 – $32.32