F - Ford Stock: What Caused Today's Positive Change
Ford Stock ( NYSE:F )
As markets responded to the latest monthly inflation statistics released by the Labor Department on Thursday morning, Ford ( NYSE:F ) stock tumbled over 3%. At 12:50 p.m. ET, the Ford stock had recovered and was up 1.2%. That followed a market reversal, but it also shows that investors have divergent views on the future of Ford stock.
What’s the Reason?
Ford stock was predicted to fall because inflation data was worse than expected. Investors have focused on Ford’s electric vehicle (EV) division as it transforms into a business with three distinct divisions. Ford ( NYSE:F ) CEO Jim Farley has proposed a $50 billion investment to increase the automaker’s electric vehicle output to 600,000 units per year by the end of 2023 and 2 million units per year only three years later.
Predictions of future interest rate increases and the likelihood of a hard landing or recession increased in the wake of the inflation figures. Ford’s ( NYSE:F ) capacity to invest in its EV business would be hampered under such economic conditions. UBS analyst Patrick Hummel issued a sell recommendation on Ford shares earlier this week, citing that a recession may wipe out Ford’s operational profit and generate losses. For Ford stock to be able to invest, it must first make a profit.
What Should You Do Now?
Some, however, argue that the United States can avoid a recession at any cost. Although the Federal Reserve has been gradually increasing interest rates since the spring, the inflationary environment cannot be anticipated to be resolved in the short time frame of the last six or seven months. Investo...
Click here to read the full article on PressReach.com .Subscribe to the PressReach RSS feeds:
- Featured News RSS feed
- Investing News RSS feed
- Daily Press Releases RSS feed
- Trading Tips RSS feed
- Investing Videos RSS feed
Follow PressReach on Twitter
Follow PressReach on TikTok
Follow PressReach on Instagram
Subscribe to us on Youtube