Why Harley-Davidson Inc’s Shares Rose 5.8% Today

What happened

Shares of motorcycle manufacturer Harley-Davidson Inc (NYSE: HOG) rose as much as 5.8% in trading Friday as investors breathed a sigh of relief that President Trump’s latest tariff announcement wouldn’t hurt the industry much. At 11:50 a.m. EDT,. shares were holding with a 3.6% gain on the day.

So what

Harley-Davidson has been unusually hard-hit by President Trump’s escalating trade battles around the world, so a little relief from that pressure is welcome. The company will likely see higher costs from previously announced tariffs on aluminum and steel and may see lower sales as the European Union considers retaliatory tariffs on motorcycles.

Image source: Getty Images.

Today’s $50 billion tariff announcement was more focused on high-tech industrial products like machinery for making light bulbs and aerospace tariffs. They won’t likely hurt Harley-Davidson’s top or bottom line in the near future.

Now what

The market overall is falling today, so Harley-Davidson’s rising stock price is welcome news for investors. But there’s not any fundamental improvement in the company today that will drive an improvement in financials going forward. Investors will want to wait and see how costs and sales are impacted by tariffs, because I don’t think any trade war is going to be good for motorcycle sales long-term.

10 stocks we like better than Harley-Davidson
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has quadrupled the market.*

David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now… and Harley-Davidson wasn’t one of them! That’s right — they think these 10 stocks are even better buys.

Click here to learn about these picks!

*Stock Advisor returns as of June 4, 2018

Travis Hoium has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

You May Also Like

About the Author: Over 50 Finance