Auto stocks were on a tear Monday, led by sharp gains in Borg Warner after Citi and Barclays raised the stock's price target.
Will we see continued gains in the auto space Tuesday after the July sales results come out?
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Analysts surveyed by Reuters expected an average annualized sales rate of 11.4 million vehicles in July, up slightly from 11.1 million in June and 11.2 million a year earlier.
Forecasts for July range from 11.1 million to 12.1 million vehicles.
Barclays Capital analyst Brian Johnson said that the pace of vehicle sales improved markedly in July, easing some doubts about the strength of a recovery that emerged after slower-than-expected auto sales in the previous three months.
Year-over-year comparisons are tougher in July because the U.S. government's "cash for clunkers" program that started the last week of July 2009 and ran through the first three weeks of August drove sales sharply higher a year earlier.
Sales have been in a gradual recovery since the last quarter of 2009, moving a sales rate of 10.7 million in that period to 11 million in the first quarter and then 11.3 million in the second quarter
What’s the trade?
I’ve got Goodyear on my radar, explains Brian Kelly.
I’m look at Johnson Controls, says JoeTerranova.
*Hear from Citi analyst Itay Michaeli. Watch the video above!
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Trader disclosure: On Aug 2, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Seymour owns (AAPL), (F), (GOOG), (POT), (BAC), (C); Grasso owns (ASTM), (ABK), (BAC), (BA), (BGP), (C), (CSCO), (DYN), (JPM), (LPX), (MO), (NDAQ), (PFE), (PRST); Terranova owns (AKAM), (APA), (AXP), (BAX), (BBY), (BMO), (C), (COP), (CREE), (CSX), (CVS), (EMC), (FCX), (GOOG), (GS), (JNPR), (JOYG), (KOL), (MMM), (MOS), (MSFT), (PCP), (PEP), (PFE), (POT), (RIMM), (TER), (SKX), (SU), (UAUA), (WYNN), (XBI); Edwards own (RIMM)
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Terranova is chief market strategist of Virtus Investment Partners, LTD.
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For Patty Edwards
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For Itay Michaeli
Citigroup Global Markets Inc. or its affiliates has received compensation for investment banking services provided within the past 12 months from ArvinMeritor, Inc., BorgWarner Inc, Lear Corporation, Magna International Inc.
Citigroup Global Markets Inc. or its affiliates expects to receive or intends to seek, within the next three months, compensation for investment banking services from ArvinMeritor, Inc..
Citigroup Global Markets Inc. or an affiliate received compensation for products and services other than investment banking services from ArvinMeritor, Inc., Borg Warner Inc, Lear Corporation, Magna International Inc in the past 12 months.
Citigroup Global Markets Inc. currently has, or had within the past 12 months, the following as investment banking client(s): ArvinMeritor, Inc., Borg Warner Inc, Lear Corporation, Magna International Inc.
Citigroup Global Markets Inc. currently has, or had within the past 12 months, the following as clients, and the services provided were non-investment-banking, securities related: ArvinMeritor, Inc., Borg Warner Inc, Lear Corporation, Magna International Inc.
Citigroup Global Markets Inc. currently has, or had within the past 12 months, the following as clients, and the services provided were non-investment-banking, nonsecurities-related: ArvinMeritor, Inc., Borg Warner Inc, Lear Corporation, Magna International Inc.
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