Here's Why Advance Auto Parts Stock Popped Today
Shares in auto parts retailer Advance Auto Parts (NYSE: AAP) rose by 7.4% by 12:30 today. The move comes on a day of a sharp correction in oil and gasoline prices after the Trump administration suggested there might be a resolution to the current conflict.
High gasoline prices discourage driving by making it more expensive, and fewer miles driven mean fewer accidents on the road and less vehicle wear and tear. That's bad news for auto parts retailers. On the other hand, when the price of gasoline declines, as it did today, then the opposite is true. That's why the stock is up.
That said, it's just a day of trading on the back of commentary alluding to constructive discussions between the U.S. and Iran. Moreover, as yet, Iran is denying that any such negotiations have taken place, and the Strait of Hormuz remains closed to most commercial traffic.
Source Fool.com
