4 trades to watch as auto stocks slide
Despite a solid month of auto sales in January, "Fast Money" traders shied away from carmaker stocks.
U.S. auto sales fell a better-than-expected 0.3 percent for the month, beating estimates of a decline between 0.5 percent and 5 percent, according to a Reuters poll. General Motors said sales rose 0.5 percent, while Ford's sales fell 2.6 percent.
GM and Ford shares fell 1.5 and 4.6 percent, respectively, on Tuesday amid a broad decline in U.S. stocks.
GM's stock looks stronger than Ford's currently, contended trader Steve Grasso. But both have fallen more than 10 percent this year, and Grasso said he would stay away from any automaker stocks amid sluggishness in the U.S. economy.
Trader Guy Adami added that the decline in Tesla Motors shares could continue even after losses of nearly 24 percent this year.
Shares of luxury car producer Ferrari also plunged 12 percent on Tuesday as the company forecast slowing deliveries. However, trader Tim Seymour saw the decline as an "opportunity."
— Reuters contributed to this report.
Disclosures:
Tim Seymour
Tim Seymour is long AAPL, BAC, DO, FCX, GM, GOOGL, INTC, JCP, NKE, SINA, T, TWTR, VZ, XOM, YHOO. Tim's firm is long BABA, BIDU, IWM, KO, PEP, SAVE, SBUX, VALE, WMT, short HYG, IWM.
Pete Najarian
Long AAPL, BAC, BKE, BMY, BP, DIS, DISCA, FOXA, GE, KMI, KO, MRK, PEP, PFE, he is long calls AAL, BX, CHS, DAL, GDX, GE, GILD, HAIN, LC, MSFT, MTG, NRF, SLV, SWN, UAL, WEN, WMB, WYNN, YDKN, he is long puts FCX, MRO.
Steve Grasso
Steve is Long AAPL, AEO, BA, BAC, CC, DD, DIS, DECK, EVGN, KBH, MJNA, MU, OLN, PFE, PHM, T, TWTR, GDX firm is long CXO, OXY, BP, CVX, RIG kids own EFA, EFG, EWJ, IJR, SPY
Guy Adami
Guy Adami is long CELG, EXAS, GDX, INTC, Guy Adami's wife, Linda Snow, works at Merck.