Why Shares of Ford Slumped in December
Shares in Ford Motor Company (NYSE: F) declined 16.3% in December, according to data from S&P Global Market Intelligence. The move comes as further signs of weakness were seen in the global auto market.
The auto market is usually seen as an interest rate-sensitive sector, because rising rates make it more expensive to finance buying a car. Meanwhile, rising rates slow the economy, make consumers feel less secure in their jobs, and damage consumer sentiment.
The evidence of a slowdown is apparent in significant declines in used-car sales -- see CarMax's earnings report in December. Meanwhile, returning to Ford specifically, the company's November sales release, issued at the start of December, showed the extent of the slowdown in Ford's sales.
Source Fool.com
