26 Million Unemployment Claims, Used Car Values Collapse 11.8% In 15 Days, Gilead Stock Turns Red (Video)
26 Million Unemployment Claims, Used Car Values Collapse 11.8% In 15 Days, Gilead Stock Turns Red Video by Silver Report
The stock market is broken when unemployment claims jump by 26 million and the market jumps for joy. I’m not sure what they think the Fed is able to do that they haven’t tried yet. The market did not end in the green however as Gilead turned out to be a disappointment and the stock gave up most of its gains from last week.
Ford and GM are looking at losses in the billions as the slide in used car prices continue to get worse. The funny thing is the other day GM was warning about the ramifications of an expected drop in used car values of 4% but that is looking a lot more optimistic considering that used car values have dropped 11.8% in the last 15 days according to Manheim. The car company’s finance arms will take the biggest hit but the rental car companies will also be in hot water from the drop.
JP Morgan analyst Ryan Brinkman said on Monday: “The real losers of the development are likely the captive-finance subsidiaries of automakers like GM and Ford and the rental-car companies. If prices finish the second quarter 10% lower than envisioned, losses could total $3 billion at GM Financial and $2.8 billion at Ford Credit.”