Automotive and Aviation Stocks Surge

Don't let it get away!

Keep track of the stocks that matter to you.

Help yourself with the Fool's FREE and easy new watchlist service today.

Although we don't believe in timing the market or panicking over daily movements, we do like to keep an eye on market changes -- just in case they're material to our investing thesis.

The Dow Jones Industrial Average (DJINDICES: ^DJI  ) is trading flat today as investors process what's going on with the Federal Reserve's plan -- or lack of one -- to curtail its monthly bond-purchasing program.

"I think many people, myself included, are beginning to worry about the consequences of how we unwind," said Charles Plosser, president of the Philadelphia Fed Bank.

Progress may be slow, but we'll take baby steps forward rather than backward, and Plosser also expects the economy to pick up at a rate of 2.5%-3% next year with unemployment continuing to trend lower.

Today did bring some positive news as the automotive industry continues its rebound. Here are the details.

General Motors and Ford (NYSE: F  ) both posted strong October sales results, up 16% and 14% for 226,402 and 191,985 units, respectively. All four of General Motors' brands improved in year-over-year comparisons and its Buick sales jumped by 31%. Chevrolet was up 15% in October, with success driven across the lineup as the brand had 13 nameplates that posted double-digit sales increases.

Ford's success was also spread across its lineup, with sales of passenger cars up 19%, utilities up 9%, and trucks up 14%. Ford's F-Series, America's best-selling vehicle for 31 years, increased sales by 13% and is on pace to reach nearly 750,000 in annual sales this year -- that would the first time it topped 700,000 since 2006.

October was a little disappointing for Toyota (NYSE: TM  ) , which raised incentives by 8% but wasn't able to capture enough sales and will likely lose market share for the first time since May. Toyota's sales were up 9% to 168,976 units in October. Just as we're seeing in overall trends, Toyota's SUVs and other light trucks were up 17% but the gain was offset by car-model sales that rose a mere 3%. One of Toyota's flagship sedans, the Camry, actually posted a 2.6% decline in sales.

Outside of the automotive industry, Spirit AeroSystems (NYSE: SPR  ) shares soared in early trading and were still up more than 7%. The company reported Friday that third-quarter earnings came in at $0.65, beating estimates and reversing last year's $0.54 net loss. Revenue was up 10% year over year and its adjusted operating margin came in at 11.3%.

"Spirit's position on the industry's leading commercial aircraft translates directly to our $38 billion backlog as global demand for these products remains strong. Spirit is well-positioned to benefit from the long-lived commercial aerospace up-cycle," said President and Chief Executive Officer Larry Lawson.

It's simple. Dividend stocks like Ford can make you rich.
While they don't garner the notoriety of high-flying growth stocks, they're also less likely to crash and burn. And over the long term, the compounding effect of the quarterly payouts, as well as their growth, adds up faster than most investors imagine. With this in mind, our analysts sat down to identify the absolute best of the best when it comes to rock-solid dividend stocks, drawing up a list in this free report of nine that fit the bill. To discover the identities of these companies before the rest of the market catches on, you can download this valuable free report by simply clicking here now.

Read/Post Comments (0) | Recommend This Article (3)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2709932, ~/Articles/ArticleHandler.aspx, 9/28/2016 9:45:45 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 18,339.24 110.94 0.61%
S&P 500 2,171.37 11.44 0.53%
NASD 5,318.55 12.84 0.24%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/28/2016 5:27 PM
^DJI $18339.24 Up +110.94 +0.61%
F $12.09 Up +0.11 +0.92%
Ford CAPS Rating: ****
SPR $44.50 Up +0.36 +0.82%
Spirit AeroSystems… CAPS Rating: **
TM $117.63 Down -0.69 -0.58%
Toyota Motor CAPS Rating: ***