Ford Shares Whipsawed by Economic Fears
DETROIT Reuters reported that shares of Ford Motor Co. had a roller coaster ride on the New York Stock Exchange on Wednesday, stung by fears about the company's downside risks in a weaker U.S. economic environment, analysts said.
Renewed concerns about the health of the world's No. 2 automaker were largely driven by the Federal Reserve's warning on Tuesday, when it said the economy was in danger of greater deterioration "for the foreseeable future," the auto industry analysts said.
"I think right now it's really bond market fears and these are very delicate issues," said Scott Hill, an analyst with Sanford C. Bernstein.
"If, in fact, we do head back into a double-dip recession ... I do think the risks are disproportionately felt at Ford," he said.
Shares of Ford, which is struggling to implement a broad turnaround plan after losing $5.45 billion last year, managed to crawl briefly into positive territory as the Dow surged in late afternoon trading.
However, the shares ended down 9 cents, or 0.79 percent, to match a prior 52-week low of $11.35, after earlier slumping to $10.65.
The shares, which have a 52-week high of $24.46, were among the day's most heavily traded on the New York Stock Exchange, with more than 14 million changing hands.
"It's just this broader malaise, what if we double-dip," said Sanford C. Bernstein's Hill.
David Healy, an analyst with Burnham Securities, also cited "nervousness about the economy in general" as a leading factor weighing on Ford's share price. But he said he thought the market may be overreacting.
"Because of the rumors of downgrades and so forth people may be focusing on Ford, but I honestly think it's overdone," Healy said.
Shares of General Motors Corp., Ford's main rival and the world's largest automaker, ended up $1.63, or 3.8 percent, at $44.69.
My first car was a 67 Mustang Coupe, 2nd one was a 67 Cougar XR-7, 3rd one was a 66 Mustang Coupe. Why did I get rid of these cars for ? I know why, because I'm stupid, stupid, stupid.
My next Ford.....