Please ensure Javascript is enabled for purposes of website accessibility

Why German Auto Stocks Are On the Move Today

By John Rosevear - Mar 13, 2020 at 9:52AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Good earnings from BMW helped the sector bounce back.

What happened

German automakers' stocks are on the move on Friday morning, rebounding as investors continue to come to grips with the impact of the novel coronavirus pandemic on manufacturers.

As of 10 a.m. EDT, shares of BMW AG (BAMXF -0.04%) (BMWYY 0.60%) and Volkswagen AG (VWAGY 2.75%) were up around 5%, while shares of Mercedes-Benz parent Daimler AG (DMLR.Y 0.39%) were up about 8%. 

So what

All three stocks have had a rough week, falling over 20% through Thursday, as concerns around the coronavirus outbreak -- which has hit neighboring Italy hard -- led to fears that the German automakers might have to idle their factories for an extended period.

BMWYY Price Chart

BMWYY Price data by YCharts.

The situation was exacerbated on Wednesday, after German chancellor Angela Merkel said that public-health experts expect 60% to 70% of the German population to be infected with COVID-19, the illness caused by the novel coronavirus. 

But Friday brought a relief rally on the Frankfurt stock exchange, helped in part by a good fourth-quarter earnings report from BMW. In a preliminary earnings release, BMW said that its Q4 operating profit jumped 32% thanks to strong demand for its most profitable high-end luxury vehicles. 

A blue BMW 8 Series, a luxury coupe.

Demand for high-profit models like the 8 Series helped BMW to a good fourth quarter. Image source: BMW AG.

The gains in Frankfurt were mirrored by the companies' American depositary receipts in early trading in New York. 

Now what

All three automakers are scheduled to release complete 2019 results and give updated guidance for 2020 in the next couple of weeks. Volkswagen will report on March 17, BMW on March 18, and Daimler on April 1.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Bayerische Motoren Werke Aktiengesellschaft Stock Quote
Bayerische Motoren Werke Aktiengesellschaft
BAMXF
$78.77 (-0.04%) $0.03
Volkswagen Aktiengesellschaft Stock Quote
Volkswagen Aktiengesellschaft
VWAGY
$19.22 (2.75%) $0.52
Bayerische Motoren Werke Aktiengesellschaft Stock Quote
Bayerische Motoren Werke Aktiengesellschaft
BMWYY
$26.70 (0.60%) $0.16
Daimler AG Stock Quote
Daimler AG
DMLR.Y
$15.53 (0.39%) $0.06

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
336%
 
S&P 500 Returns
115%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 06/25/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.