#$har

Lg Cap All-Time Highs a brief list of 8 names: $BIIB $NOC $NJ $PCYC $HAR $PETM $NEU $COMM

$SPX +1.3% as mkt trades in a volatile 40pt, 2.0% range. Greece, Oil & Energy stocks led mkts higher after wte US & mixed global ISM data.

The future of automobiles was on full display at the 2015 CES (Consumer Electronic Show) show last week in Las Vegas and will get further coverage this week as the 2015 Detroit Auto show kicks off. From autonomous cars, to increased connectivity and next-gen infotainment options, it is evident that cars are fast becoming the largest mobile devices for consumers. As auto OEM’s seek to differentiate their products and consumers demand more entertainment and safety features in their vehicles, we expect significant growth for these features in the future and anticipate part suppliers—who address this bourgeoning trend—to benefit. 

We believe that consumers are ready to pay more for automobiles with increased connectivity. According to a recent study by McKinsey, the inclusion of smart devices—which allow connectivity among vehicles—is expected to increase 30% per annum over the next 5 years. Against a backdrop of growing global light vehicle sales, which IHS is forecasting  to increase 22% from 85.5 mln units to 104.5 mln units by 2021, we think many of the major OEM auto electronics suppliers,  including Continental (CON-DE, Not Rated), Harman (HAR-US, Buy Rated), and Visteon (VC-US, Buy Rated), will benefit. 

1 year performance (from 1/8/14-1/8/15) of auto suppliers with notable electronics market share versus the S&P 500.