Strong sales boost GM stock, but Ford falters

Shares in General Motors and Ford Motor started the day with their stock prices rising Tuesday after Wall Street gave the automakers a thumbs-up over strong May sales of high-profit pickup trucks.

GM's stock jumped 54 cents, or 1.6% to close at $34.96, after trading above $35 earlier in the session.

But Ford closed down 11 cents, or 0.7%, to $15.78, after earlier rising above $16 a share.

GM reported Monday that sales of its Chevrolet Silverado and GMC Sierra, combined, were up 24.2% from the year-ago month -- and that's before the redesigned models hit dealers this month.

Ford said sales of its F-series were up 30.6%. Ford's redesign is expected next year.

Overall new-vehicle sales were up 8.2% in May, according to Autodata.

Peter Nesvold at Jefferies & Co., said in a note to clients this morning that he is "bumping price targets" for the two car companies. Detroit makers, he wrote, "continued to benefit from strong SUV and truck sales as the housing recovery gets into full swing."

Ryan Brinkman at J.P. Morgan, in his note to clients, said, "We reiterate our overweight ratings on both GM and Ford" because of strong May sales "with particular acceleration in higher-profit pickup trucks."

He also noted that GM's inclusion in the Standard & Poor's 500 index should spur more interest in the stock, and will put it into index fund portfolios.