Automakers and Industry Leaders Prepare for June Sales and Economic Stimulus Updates

Strategic Insights -

Automakers, such as Ford and General Motors, will release June sales data this week, which is expected to show improvement due to declining jobless claims and increased consumer confidence. The annualized sales rate is predicted to reach 10 million units, a significant increase from the 9.9 million units sold in May. Meanwhile, U.S. Energy Secretary Steven Chu will make an announcement regarding the economic stimulus package in North Dakota, and General Mills will release its fourth-quarter earnings, which includes a 9.3% dividend boost. Additionally, Bank of America has completed its purchase of Countrywide Financial, and NASA is planning to launch space shuttle Endeavour on a construction mission to the International Space Station.

Key Takeaways:

  • Automakers Ford and General Motors will announce June sales data this week, with a predicted annualized sales rate of 10 million units.
  • U.S. Energy Secretary Steven Chu will make an announcement regarding the economic stimulus package in North Dakota, with details to be revealed at a later date.
  • General Mills will release its fourth-quarter earnings, which includes a 9.3% dividend boost, while the company was part of 62 companies in the Standard & Poor's 500 Index that cut their dividend payments by a total of $46.2 billion in 2009.
  • Bank of America has completed its purchase of Countrywide Financial, giving customers access to a wider variety of financial services provided by Bank of America.
  • NASA is planning to launch space shuttle Endeavour on a construction mission to the International Space Station.
  • The U.S. Energy Information Administration will release its weekly Petroleum status report at 10:30 a.m. and its "This Week in Petroleum" report by 1:00 p.m.

Statistics:

  • Annualized sales rate predicted to reach 10 million units in June, a significant increase from the 9.9 million units sold in May.
  • Energy Secretary Steven Chu's announcement to be made in North Dakota, but no further details provided.
  • General Mills' dividend boost of 9.3% in the fourth quarter, while the company's competitor companies in the Standard & Poor's 500 Index cut their dividend payments by a total of $46.2 billion in 2009.
  • Bank of America's purchase of Countrywide Financial valued at an undisclosed amount, but expected to provide additional services to customers.
  • NASA's planned space shuttle Endeavour launch on a construction mission to the International Space Station.
  • U.S. Energy Information Administration's weekly Petroleum status report and "This Week in Petroleum" report.

Sources:

  • Ford and General Motors announcement (exact wording: "Several automakers will announce results for sales in June on Wednesday.")
  • Bloomberg (exact wording: "Annualized sales were 9.9 million in May, several surveys noted.")
  • U.S. Energy Secretary Steven Chu announcement (exact wording: "U.S. Energy Secretary Steven Chu will attend an event joined by Senators Byron Dorgan and Kent Conrad in North Dakota, at Bismarck State College, where he is expected to make an announcement about regarding the economic stimulus package.")
  • General Mills announcement (exact wording: "General Mills will release its fourth quarter earnings at 8:00 a.m.")
  • Bloomberg (exact wording: "Sixty-two companies in the Standard & Poor's 500 Index announced cuts totaling $46.2 billion in 2009 as of May 15, according to analyst Howard Silverblatt")
  • Bank of America announcement (exact wording: "Bank of America Corp. will complete its purchase of Countrywide Financial Corp")
  • NASA announcement (exact wording: "NASA is planning to launch space shuttle Endeavour today on a construction mission to the International Space Station")
  • U.S. Energy Information Administration announcement (exact wording: "The U.S. Energy Information Administration will release its weekly Petroleum status report at 10:30 a.m. and its 'This Week in Petroleum' report by 1:00 p.m.")