Ford Shares Fall on Profit Warning

Auto parts maker Magna International Inc (MG.TO) (MGA.N) reported a 12.5% rise in profit on strong performance in its North American business, and raised its full-year sales forecast. The fortunes of auto parts makers are tightly tied to the Detroit Three and the health of the U.S. vehicle market. The steady recovery by Ford Motor Co (F.N), General Motors Co (GM.N) and Fiat SpA’s Chrysler (FIA.MI) from their recession-induced slump bode well for Canadian auto parts makers.

Talisman Energy Inc posted a quarterly loss as the sale of some North Sea assets hurt production but the oil and gas company said it expected significant growth in higher-margin liquids output in the second half of this year and into 2014. The Canadian company, which has been refocusing operations to deal with low natural gas prices, completed the sale of a 49% stake in its North Sea operations to Sinopec Corp for US$1.5-billion in December.

Shares in the auto industry have been among the leading performers over the past year, with the Dow Jones US Automobiles & Parts Index advancing 140%.Given the massive run-up in auto equities, is there money still to be made in these stocks?I believe the answer is yes.

By Jacob Steinberg:On October 30th, Ford (F) announced its quarterly earnings.

Miriam Metzinger submits: Stocks discussed on Jim Cramer's Stop Trading! TV Segment, Tuesday February 7.

Chad Brand submits: The more and more Wall Street focuses on the narrow short-term concept of quarterly earnings figures and the analysts who try to set such expectations, the more investors can profit when others overreact. The latest earnings miss from Ford is a perfect example.

German retailer Metro warned it expects full-year sales and earnings to fall compared with last year if weak pre-Christmas business trends continue.