Why Shares in Illinois Tool Works Fell Today
Shares in industrial conglomerate Illinois Tool Works (NYSE: ITW) were down 1.7% by midday today. The move comes as a disappointing earnings report from used car dealer CarMax hit the auto sector.
In a nutshell, CarMax reported slumping sales and reduced its purchases of vehicles accordingly. That's bad news for the used car industry, and it's also bad news for new car manufacturers, as falling used car prices will pressure new car sales.
Now I know what you are thinking. What does this have to do with Illinois Tool Works? Along with its peer 3M (a stock also falling today), Illinois Tool Works is known as an industrial stock with heavy exposure to the auto industry. Automotive original equipment manufacturer (OEM) sales made up 19% of the company's sales in 2021, and its polymers and fluids (13%) segment also have heavy exposure to the automotive aftermarket.
Source Fool.com
