S&P and NASDAQ close lower on the week after sharp declines today

<p>S&amp;P is out with it expectations for the UAW strike and implications. They say</p><ul><li>Warns that if the UAW strike continues for over a week and expands, it could lead to significant reductions in earnings and liquidity in the US auto sector for 2023.</li><li>Predicts a slowdown in U.S. auto sector momentum in the second half of 2023 and expects volumes to remain flat in 2024.</li><li>Anticipates that a quick resolution to the UAW strike is unlikely.</li><li>Expects automaker ratings to remain stable, accounting for industry volatility in their financial risk assessments.</li><li>Believes the Detroit 3 automakers have a modest inventory cushion compared to the industry average.</li><li>Believes that as of September 1, both GM and Ford had sufficient vehicle inventories to prevent any significant permanent earnings or market share loss.</li><li>Notes that GM seems to be about two weeks short on SUV segment inventories compared to the industry average.</li><li>As of September 1, believes Stellantis might have proactively overstocked some high-volume models.</li><li>Suggests the UAW strike might temporarily boost new vehicle gross profits for dealers, but GPU is expected to decline to more normalized levels in the coming year.</li><li>Warns that if the UAW strike lasts beyond 8 weeks, dealers might begin to run out of parts, impacting them negatively.</li><li>States that a UAW strike will not significantly impact the majority of auto suppliers from a ratings perspective.</li></ul>

This article was written by Greg Michalowski at www.forexlive.com.