Chevy Discounts A Silverado By Over $11,000

Chevy Discounts A Silverado By Over $11,000

2016 Chevy Silverado 1500 LTGM’s (NYSE: GM) Chevy Silverado is the second best selling pick-up in the U.S. behind perennial leader, the Ford (NYSE: F) F-150. Virtually no one in the auto industry believes Chevy can close the gap. A huge discount on one version of the Silverado might help, a deal which chops over $11,000 of the sticker price.

Notably, incentives are considered a coffin in the nail of profitability. Chevy has a number of versions of the Silverado which are not as aggressively priced. The same holds true across most of the entire Chevy line up.

The 2017 SILVERADO 1500 CREW CAB ALL STAR has a set of incentive which add to $11,185. The deal has a large number of qualifications:

On select tagged vehicles in stock. Must qualify through GM Financial. Total Value based on $48,600 average MSRP of vehicles in stock. MSRP of Silverado shown $50,945. Not available with special financing, lease and some other offers. Take delivery by 2/28/17. See participating dealer for details.

Since Chevy probably won’t sell many of this exact model in the next week, its financial exposure is modest.

For those who do find one of the trucks with the special tag, the discount list has several components. The first is $3,000 for a “bonus cash allowance”. Next, a $2,935 “average factory reduction below MSRP” (manufacturer’s suggested retail price). Add to that $2,500 as a “total cash allowance”, and $2,000 in “down payment assistance”. And, finally, $750 for an “option package discount”

A complicated set of discounts. Absolutely.  A poor precedent for manufacturer profitability. Absolutely as well.

Next Week

Next Week

Next Week

February 24, 2017

Central Bank Action: Interest rate policy meetings in Canada, Ukraine, Malaysia, Hungary and Israel. Publication of Federal Reserve Beige Book of regional conditions. Evans, Lacker, Yellen, Williams, Bullard, Kaplan, and Brainard are some of the Fed officials who’ll be speaking publicly.

Holidays: Brazilian Mardi Gras and South Korea’s Independence Day.

Purchasing Manager Indices: Being the bridging week between February and March, a slew of manufacturing and service-sector PMI surveys get reported. The U.K. construction purchasing managers survey arrives, too.

Scheduled U.S. Economic Statistics: GDP, productivity, unit labor costs, personal income and spending, PCE price deflator, pending home sales, construction spending, Case Shiller house price index, Dallas and Richmond Fed manufacturing indices, durable industrial orders, consumer confidence, motor vehicle sales, and weekly jobless insurance claims, consumer comfort, mortgage applications, energy inventories, and chain store sales.

Special Event: President Trump addresses both houses of the Congress in prime time on Tuesday.

Japanese Data: Consumer prices, industrial production, unemployment, retail sales, real household spending, small business sentiment, monetary base, motor vehicle output, construction orders, housing starts, corporate profits, business investment, and consumer confidence.

Selected Other Asian Statistics: Hong Kong, South Korean and Malaysian trade figures. South Korean and Hong Kong retail sales. Thai and South Korean current accounts. Indonesian and South Korean consumer prices. Singaporean and Malaysian producer prices. Indian GDP.

Australia and New Zealand: Australian corporate profits, money and credit growth, GDP, trade and current accounts, and building permits. New Zealand trade statistics, M3 money growth and business sentiment.

Euroland: Economic sentiment, consumer prices, unemployment, producer prices, retail sales, and money and credit growth.

Members of the Euro Zone: German, Portuguese, and Greek retail sales. French, Italian, Spanish, Finnish, Portuguese and Belgian GDP. German, Spanish, Italian and Cypriot producer prices. French, Cypriot and Austrian producer prices. German unemployment, Italian wages, and Spanish current account.  Finnish consumer confidence and trade.

U.K. and Switzerland: British Nationwide house price index, M4 money growth, consumer confidence, and shop prices. Swiss GDP, retail sales, UBS consumption indicator, and index of leading economic indicators.

Eastern Europe: Czech and Polish GDP. Czech and Romanian PPI. Romanian retail sales.

Nordic Europe: Swedish and Norwegian retail sales and current accounts. Danish and Swedish GDP. Swedish PPI, trade balance and industrial production. Danish and Norwegian unemployment.

Canada: Quarterly GDP and current account. Monthly GDP, producer prices and raw material prices.

Turkey, South Africa and Brazil: Turkish CPI, PPI and trade balance. South African trade, money growth and private credit expansion. Brazilian trade.

Copyright 2017, Larry Greenberg. All rights reserved. No secondary distribution without express permission.

Tags: Economic Data Calendar




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Gold to extend higher?

Gold to extend higher?

A daily summary of high-profile members of several complexes.

Gold Apr Contract (GC, ETF: (GLD))
Rallying overnight gapped up Friday to immediately fulfill the 1259.00  objective. Probing higher was retraced back down to attack Thursday’s range. The second consecutive higher close confirms the breakout, requiring at least an eventual third higher close.

Eurodollar Mar Contract (EC, ETF: (FXE, UUP))
Gapping up Friday was quickly retraced back down to the 1.0585 bounce limit that Thursday had only fluctuated narrowly around, maintaining the downside momentum targeting 1.0470.

Silver Mar Contract (SI, ETF: (SLV))
Friday’s gap up extended higher through the morning. Thursday’s test of the 18.18 objective was a fresh high close, but not an optimal breakout while still ranging around prior highs. But the burden of proof is on sellers to avoid trending higher.

30-year Treasury Mar Contract (US, ETF: (TLT))
Thursday’s optimism may have been ineffectual for not trending higher, but Friday’s open compensated for the delay by gapping up through 152-06 resistance and then trending higher intraday. A second consecutive higher close Monday would confirm a much bigger rally underway. Closing back under 151-11 would instead launch a steep decline.

Crude Oil Apr Contract (CL, ETF: (USO, USL) (UWTI-long, DWTI-short))
Friday’s gap down finished off Thursday’s failure to extend its gap up. Friday’s gap down also attacked Wednesday’s test of the 53.68 sell signal that had only been ranged narrowly around.

Natural Gas Apr Contract (NG, ETF: (UNG, UNL))
With room above to 2.86 as noise, and an attraction to probe under Tuesday night’s new lows at 2.65, Friday’s session only ranged narrowly sideways.

About the Author

Rod David develops analytical techniques that are designed to efficiently identify targets and turning points for any liquid stock or market in any time frame. He primarily analyzes S&Ps, generating several round-turn candidates daily. Rod publishes “Trading Plan” and more each session at the blog http://IfThenSignals.com.

Weekly Initial Unemployment Claims increase to 244,000, 4-Week Average Lowest Since 1973

Weekly Initial Unemployment Claims increase to 244,000, 4-Week Average Lowest Since 1973

by Bill McBride on 2/23/2017 08:38:00 AM

The DOL reported:

In the week ending February 18, the advance figure for seasonally adjusted initial claims was 244,000, an increase of 6,000 from
the previous week’s revised level. The previous week’s level was revised down by 1,000 from 239,000 to 238,000. The 4-week
moving average was 241,000, a decrease of 4,000 from the previous week’s revised average. This is the lowest level for this
average since July 21, 1973 when it was 239,500
. The previous week’s average was revised down by 250 from 245,250 to 245,000.
emphasis added

The previous week was revised down.

The following graph shows the 4-week moving average of weekly claims since 1971.

Click on graph for larger image.

The dashed line on the graph is the current 4-week average. The four-week average of weekly unemployment claims decreased to 241,000.

This was close to the consensus forecast.

The low level of claims suggests relatively few layoffs.

Bank of Korea

Bank of Korea

Bank of Korea

February 23, 2017

South Korea’s central bank retained a 1.25% Base Rate as was expected. That’s been the level for the past eight months. A 25-basis point reduction in June 2016 broke a one-year-long period with no change. Four 25-bp reductions had been implemented in August and October of 2014 and then March and June of 2015. A released statement looks for moderate export-led growth and inflation hovering near the 2% targeted objective during the policy horizon. In addition to the usual risks faced by emerging markets such as U.S. protectionism and European sovereign debt, South Korea must contend with its hostile neighbor to the north, which is moving closer toward full nuclear weapons capability, and a domestic scandal that yet could result in the impeachment and removal of the prime minister and snap elections.

Copyright 2017, Larry Greenberg. All rights reserved. No secondary distribution without express permission.

Tags: Bank of Korea




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Commodities Technical Analysis, February 20th — February 24th

Commodities Technical Analysis, February 20th — February 24th

The technical analysis, that includes the indicators’ data and major pivot points for WTI Oil, Gold, Silver and Copper as traded on spot market as of February 19th, 2017:

Crude Oil

Indicators

Moving Averages RSI Parabolic SAR CCI
Long Neutral Long Neutral

Crude Oil - Indicators as of Feb 19, 2017

Floor pivot points

3rd Sup 2nd Sup 1st Sup Pivot 1st Res 2nd Res 3rd Res
51.74 52.20 52.96 53.42 54.18 54.64 55.40

Crude Oil - Floor pivot points as of Feb 19, 2017

Woodie’s pivot points

2nd Sup 1st Sup Pivot 1st Res 2nd Res
52.28 53.10 53.50 54.32 54.72

Crude Oil - Woodie's pivot points as of Feb 19, 2017

Camarilla pivot points

4th Sup 3rd Sup 2nd Sup 1st Sup 1st Res 2nd Res 3rd Res 4th Res
53.04 53.37 53.49 53.60 53.82 53.93 54.05 54.38

Crude Oil - Camarilla pivot points as of Feb 19, 2017

Fibonacci retracement levels

0.0% 23.6% 38.2% 50.0% 61.8% 100.0%
52.67 52.96 53.14 53.28 53.42 53.89

Crude Oil - Fibonacci retracement levels as of Feb 19, 2017

Gold

Indicators

Moving Averages RSI Parabolic SAR CCI
Long Neutral Long Neutral

Gold - Indicators as of Feb 19, 2017

Floor pivot points

3rd Sup 2nd Sup 1st Sup Pivot 1st Res 2nd Res 3rd Res
1193.06 1204.84 1220.20 1231.98 1247.34 1259.12 1274.48

Gold - Floor pivot points as of Feb 19, 2017

Woodie’s pivot points

2nd Sup 1st Sup Pivot 1st Res 2nd Res
1205.74 1222.00 1232.88 1249.14 1260.02

Gold - Woodie's pivot points as of Feb 19, 2017

Camarilla pivot points

4th Sup 3rd Sup 2nd Sup 1st Sup 1st Res 2nd Res 3rd Res 4th Res
1220.64 1228.11 1230.59 1233.08 1238.06 1240.55 1243.03 1250.50

Gold - Camarilla pivot points as of Feb 19, 2017

Fibonacci retracement levels

0.0% 23.6% 38.2% 50.0% 61.8% 100.0%
1216.61 1223.02 1226.98 1230.18 1233.38 1243.75

Gold - Fibonacci retracement levels as of Feb 19, 2017

Silver

Indicators

Moving Averages RSI Parabolic SAR CCI
Long Neutral Long Neutral

Silver - Indicators as of Feb 19, 2017

Floor pivot points

3rd Sup 2nd Sup 1st Sup Pivot 1st Res 2nd Res 3rd Res
17.29 17.49 17.74 17.94 18.19 18.39 18.64

Silver - Floor pivot points as of Feb 19, 2017

Woodie’s pivot points

2nd Sup 1st Sup Pivot 1st Res 2nd Res
17.50 17.77 17.95 18.22 18.40

Silver - Woodie's pivot points as of Feb 19, 2017

Camarilla pivot points

4th Sup 3rd Sup 2nd Sup 1st Sup 1st Res 2nd Res 3rd Res 4th Res
17.74 17.87 17.91 17.95 18.03 18.07 18.11 18.24

Silver - Camarilla pivot points as of Feb 19, 2017

Fibonacci retracement levels

0.0% 23.6% 38.2% 50.0% 61.8% 100.0%
17.69 17.80 17.86 17.92 17.97 18.14

Silver - Fibonacci retracement levels as of Feb 19, 2017

Copper

Indicators

Moving Averages RSI Parabolic SAR CCI
Long Neutral Long Neutral

Copper - Indicators as of Feb 19, 2017

Floor pivot points

3rd Sup 2nd Sup 1st Sup Pivot 1st Res 2nd Res 3rd Res
250.65 258.71 264.35 272.41 278.05 286.11 291.75

Copper - Floor pivot points as of Feb 19, 2017

Woodie’s pivot points

2nd Sup 1st Sup Pivot 1st Res 2nd Res
258.11 263.13 271.81 276.83 285.51

Copper - Woodie's pivot points as of Feb 19, 2017

Camarilla pivot points

4th Sup 3rd Sup 2nd Sup 1st Sup 1st Res 2nd Res 3rd Res 4th Res
262.45 266.21 267.47 268.72 271.24 272.49 273.75 277.52

Copper - Camarilla pivot points as of Feb 19, 2017

Fibonacci retracement levels

0.0% 23.6% 38.2% 50.0% 61.8% 100.0%
266.78 270.01 272.01 273.63 275.25 280.48

Copper - Fibonacci retracement levels as of Feb 19, 2017

If you have any questions or comments on this commodity technical analysis, please, feel free to reply below.