Solar companies, in particular, are seeing significant gains.
Sunrun and First Solar are up over 8%, while SolarEdge surged as much as 10%.
Despite an overall down market, solar stocks are rallying on hopes that Harris, a strong advocate for clean energy, could boost the sector if she becomes the next US president.
According to Raymond James analyst Ed Mills, while the long-term impact of the November election remains uncertain, clean energy stocks are expected to benefit in the near term from Harris’ momentum.
The Invesco Solar ETF has jumped more than 3% today, though it remains down 28% year-to-date.
Harris’ win could boost solar stocks
Betting markets have shifted in favor of Kamala Harris, a development that bodes well for clean energy.
Harris is widely seen as a champion of the energy transition, while many expect Donald Trump to weaken parts of the Inflation Reduction Act (IRA) if re-elected.
During the debate, Harris emphasized the Biden administration’s substantial investment in clean energy. Harris stated:
I’m proud that, as vice president over the last four years, we have invested a trillion dollars in a clean energy economy while also increasing domestic gas production to historic levels.
She also highlighted the role of a clean energy economy in driving investments in US-made products, including automobiles.
Interest rate cuts could further boost solar stocks
Wall Street analysts expect the Inflation Reduction Act to remain intact if Harris wins in 2024.
A Trump victory, however, could result in some parts of the IRA being repealed, particularly tax credits for electric vehicles.
The full impact on solar companies remains to be seen, but the market is wary.
Solar stocks have faced challenges this year as higher interest rates increased the cost of financing solar panel installations.
However, companies like Sunrun, SolarEdge, and First Solar could rally in the coming months, as the US Federal Reserve is widely expected to announce a rate cut on September 18.
Yet, inflation data could complicate the Fed’s decision.
The core consumer price index (CPI) for August came in higher than expected at 0.3%, compared to a forecast of 0.2%.
This might push the Fed to take a more cautious approach to lowering interest rates, which could have implications for the solar sector’s recovery.
Japanese stocks experienced a notable rally on Wednesday, with the Nikkei 225 Stock Average climbing by over 3% as the yen’s recent strengthening trend eased.
This pause in the yen’s upward movement provided a boost to exporters, particularly in the technology and automotive sectors.
The Nikkei 225 surged by as much as 3.5% to 32,810 points by 10:56 a.m. in Tokyo. The broader Topix Index also saw a significant increase, rising by 2.9%.
Hitachi Ltd. was a major contributor to this upward momentum, with its shares gaining 4.7%. This growth was driven by the yen’s decline to 142.95 against the US dollar, which eased the pressure on Japanese exporters.
Source: TradingView
Easing yen concerns boost technology and automaker stocks
The recent strengthening of the yen had been a major concern for Japanese exporters, particularly technology companies and automakers, as it made their products more expensive abroad.
However, with the yen weakening, these sectors saw a rebound.
“The concern over a stronger yen has eased as the market adjusted its expectations for a US rate cut to 25 basis points,” noted Ikuo Mitsui, a fund manager at Aizawa Securities.
Mitsui attributed the market’s positive movement to a recovery in chip-related stocks, which had previously been sold off due to the strong yen.
The rebound in the Japanese market was timely, as the relative strength index for both the Nikkei 225 and Topix Index had been nearing oversold territory, with readings approaching 30.
The Topix Index had been in a downward trend for six consecutive days, marking the longest losing streak in a year.
US inflation data impacts rate cut expectations
The recent pick-up in US inflation for August played a role in altering expectations for future Federal Reserve actions.
The unexpected inflation data reduced the likelihood of a substantial rate cut at the Federal Reserve’s upcoming meeting, affecting market sentiment.
Despite the recent gains, investors remain cautious and are closely monitoring comments from central bank officials.
Bank of Japan policy board member Naoki Tamura indicated that the central bank might need to raise its benchmark rate to at least 1% by the end of the current projection period.
This potential shift in policy could influence future market movements.
Central bank commentary and market outlook
On Wednesday, another Bank of Japan board member, Junko Nakagawa, stated that the central bank would continue to adjust its policy as long as the economy performs in line with projections.
Her comments contributed to a brief strengthening of the yen, underscoring the ongoing volatility in currency markets.
Out of the 2,132 stocks in the Topix Index, 1,955 saw gains, 127 declined, and 50 remained unchanged.
This broad-based advance reflects the overall positive sentiment in the market following the yen’s recent weakening and easing concerns over its impact on Japanese exporters.
Bank of America Corp (NYSE: BAC) CEO Brian Moynihan has praised Warren Buffett, the renowned investor, despite Buffett’s recent decision to reduce his stake in the financial services giant.
Speaking at a global financial services conference, Moynihan expressed appreciation for Buffett’s support during a critical period for the company. Moynihan said:
He’s been a great investor for our company and stabilized us when we needed it
He was referring to Buffett’s $5 billion investment in Bank of America during the aftermath of the global financial crisis.
That initial investment, split between preferred stock and warrants, helped the bank regain its footing during a turbulent time.
Buffett’s long-term relationship with Bank of America solidified in 2017 when his conglomerate, Berkshire Hathaway, converted the warrants, making it the bank’s largest shareholder.
Buffett continued to add to his position, purchasing an additional 300 million shares in early 2019.
However, recent months have seen a change in strategy as the legendary investor has begun trimming his stake.
Buffett sells 5.8 million more Bank of America shares
Bank of America began the year as the second-largest holding in Berkshire Hathaway’s portfolio, trailing only Apple.
However, Buffett has sold approximately 175 million shares of the bank, totaling $7.2 billion.
As of mid-September, the Oracle of Omaha’s stake in Bank of America has dropped to 11.1%, with around 858 million shares still in Berkshire Hathaway’s portfolio.
When asked about the reasoning behind Buffett’s decision to sell, Moynihan admitted that he had no insight into the investor’s motivations.
I don’t know exactly what he’s doing, because frankly, we can’t ask him. But the market is absorbing the stock … and life will go on.
Is Bank of America stock still a buy?
Despite Buffett’s recent sales, Bank of America’s stock has proven to be a solid investment over the years.
When Buffett first bought in 2011, the stock was trading at just $5.50 per share.
Today, shares are hovering around $40, reflecting the tremendous profitability of his investment.
Although the stock has dipped more than 10% from its mid-July highs, it remains up over 20% from its year-to-date low.
Analysts at Piper Sandler see further upside, with expectations of a rebound in net interest income (NII).
In its second-quarter earnings report, Bank of America reported a 3% decline in NII, but also signaled optimism for future growth.
With a current price target of $42 from Piper Sandler and a 2.65% dividend yield, Bank of America remains well-positioned for long-term investors, especially as the US faces potential economic challenges.
Sui recorded notable price actions over the past day, becoming the highest gainer among the top 100 cryptocurrencies by market cap. The altcoin climbed from the daily low of $0.8696 to $1.0296, translating to an 18.41% uptick.
Meanwhile, Grayscale’s announcement about launching SUI Trust catalyzed the significant rallies. The asset management company opened the Grayscale Sui Trust to accredited investors, boosting exposure to the altcoin.
Grayscale Sui Trust is open to eligible accredited investors seeking exposure to $SUI, a third-generation blockchain designed to help address scalability and transaction costs.
Grayscale SUI Trust is one of the first securities solely invested in and deriving value from the price of SUI (“SUI”) that enables investors to gain exposure to SUI in the form of a security while avoiding the challenges of buying, storing, and safekeeping SUI, directly.
Amidst the developments, SUI price is printing a bullish market setup – a breakout of which could see the altcoin skyrocketing to $2.
The improving economy with possible Fed interest rate cuts might fuel SUI’s surges to the targeted mark.
Moreover, the Sui blockchain revealed new ecosystem updates on Wednesday, introducing streamlining asset transfers with Object Congestion Control.
That enables it to improve transaction speed through enhanced and restructured checkpoint efficiency.
The latest announcement by Grayscale will likely bolster Sui’s adoption by institutions. That could skyrocket SUI prices, considering that accreditors investors, or whales, boast over $1 million in net worth.
Also, accredited individuals mostly have yearly income exceeding $200,000. Grayscale is precisely exposing altcoin SUI to traditional whales.
That improved sentiments around Sui and the broad market recovery pushed it past $1 – the area it has failed to break since June 2024.
The crypto holds steady and looks to challenge the resistance level of $1.0436, beyond which SUI might rally to $2.
The daily chart supports SUI’s bullishness as it broke beyond the 50- and 200-day EMAs. Moreover, the token completed a rising triangle (an upside continuation setup).
A breakout from this pattern might propel SUI to $1.48 – a 46% jump from current prices. Sustained bullish strength will potentially extend the gains to the $2 mark.
SUI current price
The alt trades at $1.02 after a brief retracement from its daily high. The 65% surge in 24-hour trading volume supports continued uptrends for SUI. A daily candlestick close beyond $1 could shift SUI’s trajectory to fully bullish.
Dubai’s booming real estate market continues to attract global attention, with the emirate on track for another record-breaking year of property sales.
However, this surge in demand has raised concerns about inflation. Hussain Sajwani, chairman of real estate giant Damac, voiced his worries about rising costs in the city, which is drawing more residents and businesses, potentially making Dubai one of the most expensive places to live.
“Today, getting a seat in a school is difficult, and businesses are raising prices. Inflation is going to be high,” Sajwani said in a recent interview with CNBC.
The influx of talented individuals and families into Dubai has intensified demand for essential services, pushing up prices across the board, not just in real estate.
Why inflation in Dubai is hard to control
Sajwani’s concern goes beyond property prices.
He urged the government to address the broader economic impact of Dubai’s growing population and wealth, including inflation in everyday goods and services.
However, controlling inflation might be challenging given the influx of new residents, attracted by Dubai’s tax-friendly policies and luxurious lifestyle.
In July alone, property sales in Dubai soared 31.6% year-over-year to reach $13.5 billion, according to local brokerage Elite Merit Real Estate.
Over the year’s first half, Dubai recorded more than 43,000 property transactions, selling around 80% of the inventory launched since 2022.
The luxury segment, in particular, is booming, with the city selling 436 ultra-luxury homes in the past year compared to just 23 in 2019.
This surge is largely driven by wealthy individuals seeking to relocate to a tax-friendly, business-friendly environment.
Hussain Sajwani expects rise in property demand
Despite concerns about inflation, Sajwani remains optimistic about the future of Dubai’s real estate market.
He noted that Dubai is attracting not just the wealthy, but people from all walks of life, from taxi drivers to business executives.
“Everyone wants to come to Dubai,” he said, emphasizing that the city’s appeal has broadened significantly.
Sajwani credits this demand to Dubai’s response during the COVID-19 pandemic when it introduced new visas for tourists, entrepreneurs, and remote workers.
These policies helped position Dubai as a global hub, attracting talent and businesses alike.
“Dubai today is a global city, attracting a lot of talent and businesses. We’re going to continue to grow,” Sajwani added.
Sajwani also expressed confidence in the long-term stability of Dubai’s real estate market. Unlike the boom-and-bust cycle it experienced during the global financial crisis, Dubai’s property market is now regulated more strictly, ensuring both developers and buyers are held to higher standards.
This regulatory environment, he believes, will help protect the market from future downturns.
While Sajwani is optimistic about Dubai’s continued growth and prosperity, his warnings about inflation highlight a key challenge for the city as it continues to cement its status as a global luxury hub.
Managing this growth while keeping living costs in check will be crucial for the long-term sustainability of the emirate’s economy.
Investors are now worried about how the outcome of the election could influence US energy policy and the broader global economy.
Bearish sentiment dominates oil markets
The current selloff in oil markets is driven by record levels of bearish sentiment among hedge funds and money managers.
According to the Commodity Futures Trading Commission (CFTC), speculative positions in WTI and Brent crude are at multi-year lows.
Net speculative long positions, which reflect bets on rising prices, have dropped to 139,242 lots as of September 3, 2024, the lowest level since 2011.
Over the past eight weeks, traders have sold a staggering 311.2 million barrels of crude oil.
Analysts at Standard Chartered report that their crude oil positioning index has reached -100.0 for the first time in 2024, indicating extreme pessimism.
However, analysts caution that such low index scores often precede price rallies, as seen in December 2023 when prices rebounded sharply.
Despite the prevailing bearish sentiment, many experts believe fears of a crude oil surplus are exaggerated.
While there are legitimate concerns about slowing demand in key markets like China, the fundamental supply-demand balance does not support the extreme negativity in the market.
The US Energy Information Administration (EIA) recently reported a 1.816 million barrels-per-day (bpd) drop in U.S. crude stockpiles, signaling a tightening supply.
The EIA still forecasts that supply shocks could push prices back above $80 per barrel in the coming months.
Supply disruptions in Libya and Gulf of Mexico
In addition to market sentiment, global oil supply has been affected by disruptions in key regions.
In Libya, a standoff between the Haftar clan and the Central Bank has blocked oil exports for two weeks, cutting crude output from 1.15 million bpd in July to just 230,000 bpd.
Key export terminals such as Es Sidra and Ras Lanouf remain closed, tightening global supply.
Meanwhile, in the Gulf of Mexico, Tropical Storm Francine has caused widespread evacuations of offshore oil platforms, temporarily reducing production by over 400,000 bpd.
The group has postponed this hike to December in an attempt to stabilize the market.
However, the market’s reaction was muted, and prices continued to slide below $70 per barrel.
OPEC+ also revised its oil demand forecast for 2024, cutting its 2025 outlook to 1.74 million bpd from earlier expectations.
Although demand is still expected to grow, it falls short of earlier projections.
How does China affect oil prices?
China’s slowing economy has become a major concern for global oil markets.
The world’s largest crude oil importer has seen a sharp reduction in demand growth this year, partly due to the country’s aggressive push towards electrifying its transport sector.
Until recently, China’s oil demand had been growing by 500,000 to 600,000 bpd annually, but that figure has now slowed to around 200,000 bpd.
For the first seven months of 2024, China’s oil imports were 320,000 bpd lower than during the same period last year.
With China struggling to meet its economic growth target of 5% and the shift towards electric vehicles accelerating, the country’s demand for oil could continue to weaken in the coming years.
The potential impact of US energy policy
The upcoming US presidential election could also have significant implications for the oil market.
Donald Trump has pledged to deregulate the US shale oil sector if elected, aiming to boost production and lower gasoline prices.
However, analysts point out that US shale oil production is already near record levels, and further increases in output could exacerbate the current supply glut, pushing prices even lower.
However, Trump’s plans to increase oil production may not be economically viable, as WTI prices around or below $60 per barrel could make some US shale operations uneconomic.
Moreover, increasing supply in an already oversupplied market could trigger further price declines, putting additional pressure on producers.
A volatile market ahead
WTI crude oil prices have dropped over 21% since July, and technical analysis suggests further declines could be ahead.
The current support level is between $65 and $66—if prices fall below this range, they could drop further to $60.
On the upside, resistance is expected around $71, and prices would need to rise above $75 to signal a potential recovery.
Short-term price movements will also be influenced by upcoming U.S. economic data and the Federal Reserve’s decisions.
While the bearish sentiment has driven prices to multi-year lows, some analysts argue that the market may be oversold.
The extreme positioning by hedge funds and money managers suggests that a price rebound could occur if traders begin to reassess the actual supply-demand balance.
Supply disruptions in Libya and the Gulf of Mexico, combined with OPEC+’s continued production cuts, should provide some support to prices in the near term.
Additionally, the potential for a recovery in Chinese demand, while uncertain, could improve the outlook for oil demand growth in the medium term.
However, investors should not rush to make a decision, as the market faces significant uncertainties.
The outcome of the U.S. presidential election could have a profound impact on energy policy and global oil production.
China’s economic slowdown and the global shift towards renewable energy and electric vehicles pose long-term challenges to oil demand.
Lastly, let’s not forget about the ongoing war in the Middle East which does not seem to be slowing down anytime soon, exacerbating further the grim long-term outlook for the price of crude oil.
US inflation slowed to 2.5% in August, marking the lowest level since February 2021, according to the latest report from the Labor Department.
This moderation in inflation, driven by a drop in energy costs and steady core prices, could set the stage for a potential interest rate cut by the Federal Reserve next week.
Despite the easing headline inflation, core inflation remains elevated, reflecting ongoing price pressures in key sectors.
Core inflation remains at 3.2%
While the Consumer Price Index (CPI) rose by 0.2% in August, matching expectations, core inflation—which excludes volatile food and energy prices—edged up by 0.3%.
This was slightly higher than forecast and left the annual core inflation rate at 3.2%.
Shelter costs, a significant component of the CPI, increased by 0.5% for the month and are now 5.2% higher than a year ago, keeping housing a key driver of inflation.
Energy prices fell by 0.8% in August, with gasoline prices declining 0.6% for the month and 10.3% year-over-year.
This helped temper inflation figures and provided some relief to consumers. Meanwhile, food prices saw a slight increase of 0.1%.
Despite the drop in energy costs, other sectors continue to experience inflationary pressures.
Motor vehicle insurance prices rose by 0.6%, leading to a 16.5% increase over the past year, and hospital services climbed 0.4%, now 5.8% higher than a year ago.
Average hourly wages outpaced inflation in August, rising by 0.2% after adjusting for the CPI.
Over the past year, inflation-adjusted wages have risen by 1.3%, offering some financial relief to workers amid persistent price pressures.
This increase in real earnings may ease the burden on consumers, but uncertainties surrounding the broader economy persist, particularly regarding the Federal Reserve’s next steps on interest rates.
Fed expected to cut rates amid mixed inflation data
The softer inflation data has raised expectations that the Federal Reserve may cut interest rates by 0.25% at its upcoming meeting.
Traders are betting on an 85% chance that the Federal Open Market Committee (FOMC) will approve a rate cut, aiming to support the slowing economy.
However, with core inflation remaining stubbornly high, some Fed officials may advocate for a more cautious approach.
The central bank’s decision will likely hinge on balancing inflation concerns with signs of a cooling labor market and broader economic slowdown.
10-year treasury yield hits lowest point in over a year
The yield on the 10-year US Treasury note has fallen to its lowest level in more than a year, signaling market expectations of lower interest rates.
The recent correction in the inverted yield curve—a typical recession indicator—suggests that the Fed’s anticipated rate cuts could be accompanied by further economic headwinds.
As inflation moderates and broader economic indicators point to a slowdown, the Fed’s next moves will be critical in shaping the future of the US economy. Investors and policymakers alike will be watching closely to see how these trends evolve in the months ahead.
As the 2024 US elections approach, the Latino electorate, comprising around 36 million eligible voters, is poised to be a decisive force.
Representing roughly 15% of the American electorate, Latinos’ political engagement has surged in recent years, doubling since 2000.
For any candidate aiming to secure their support, understanding the top issues that matter most to this vital demographic is crucial.
Economic concerns take center stage
Economic issues dominate Latino voters’ concerns, with inflation and rising living costs topping the list.
According to the National Latino Voter Poll by UnidosUS conducted in August 2024, 50% of Latino respondents cite these financial challenges as their most pressing concerns.
This mirrors national trends but is particularly acute for Latinos due to the disproportionate impact of economic hardships on low-income families.
Stagnant wages alongside soaring prices have exacerbated financial instability, making economic stability a priority for Latino voters.
Candidates must offer concrete solutions that address these economic pressures to win Latino support.
What Latino voters want: Employment, affordable housing
Employment-related issues are also a significant concern, with 39% of Latino voters prioritizing job growth and workforce development.
The Latino community takes pride in its role as both workers and entrepreneurs, contributing significantly to local economies.
Candidates who propose policies to support small businesses, enhance job training, and encourage workforce development will resonate with Latino voters.
Affordable housing has emerged as a critical issue, with one-third of Latino voters expressing concern over rising rental costs and limited housing options.
The need for affordable housing has intensified as urban areas expand, disproportionately affecting low-income families.
Candidates should advocate for policies that increase investment in affordable housing, regulate rental prices, and support first-time homebuyers.
Gun violence and community safety
Gun violence is another pressing issue for the Latino community, especially in states with large Latino populations like California, Texas, and Florida.
The increase in mass shootings raises significant concerns about public safety.
Candidates must address gun violence prevention in their platforms, focusing on strategies to enhance community safety and tackle underlying issues such as poverty and inadequate mental health services.
As the 2024 elections draw near, addressing these critical issues—economic stability, job opportunities, affordable housing, and gun violence prevention—is essential for any candidate seeking to capture the Latino vote.
Engaging with these concerns not only strengthens Latino communities but also influences the broader political landscape.
Candidates who effectively address these issues will be well-positioned to gain the crucial Latino vote this election season.
Former President Donald Trump has sharply criticized pop superstar Taylor Swift after she publicly endorsed Kamala Harris for the 2024 US presidential election.
Swift, who has more than 283 million Instagram followers, announced her support for Harris and running mate Tim Walz in a social media post, which prompted a swift response from Trump.
During a phone interview with Fox News, the former president dismissed the endorsement, suggesting that Swift would face consequences for her political stance.
“I was not a Taylor fan,” Trump said.
She’ll probably pay a price for it in the marketplace. It was just a question of time; she couldn’t possibly endorse Biden. She’s a very liberal person. She seems to always endorse a Democrat.
Trump’s reaction dominates headlines
Trump’s comments are the latest in the ongoing political back-and-forth between celebrities and politicians.
His response came just hours after Swift posted on Instagram, sharing her decision to vote for Harris in the 2024 election.
In the post, Swift explained her support for Harris, citing the vice president’s leadership and commitment to issues like LGBTQ+ rights, reproductive health, and equality.
Swift also referenced recent AI-generated images falsely showing her supporting Trump, which prompted her to clarify her political stance publicly.
Swift’s announcement of her voting intentions quickly gained traction, with fans and critics alike discussing the impact of her endorsement on the upcoming election.
Trump’s assertion that Swift would “pay a price” for backing Harris reflects his longstanding disdain for the singer, who has publicly opposed him in past elections.
Swift’s influence and political involvement
This is not the first time Swift has entered the political arena, but her endorsement of Harris marks the first time she has spoken about the 2024 election.
Swift previously endorsed Joe Biden in the 2020 election, but that came just a month before election day.
This time, her public stance has arrived earlier in the election cycle, potentially amplifying its impact.
Trump’s dismissal of Swift’s influence mirrors his past comments about celebrities entering politics, often questioning their relevance in shaping public opinion.
However, political analysts suggest that Swift’s massive platform and engaged fan base, known as “Swifties,” could have a tangible effect on voter mobilization, especially among younger demographics.
Kamala Harris’s campaign was quick to capitalize on the endorsement. In response to Swift’s post, the Harris team launched “Harris-Walz friendship bracelets” on social media, a reference to the friendship bracelets popularized by fans during Swift’s sold-out Eras tour.
The campaign’s lighthearted response is a clear effort to tap into the cultural influence Swift holds over her fan base, with the bracelets available for purchase on the official campaign website.
Trump’s comparison to Brittany Mahomes
During his Fox News interview, Trump also took the opportunity to compare Swift to another prominent public figure, Brittany Mahomes, the wife of NFL star Patrick Mahomes.
Brittany Mahomes had recently liked one of Trump’s social media posts, leading to a wave of attention.
“I actually like [Brittany] Mahomes better, if you want to know the truth—she’s a big Trump fan,” Trump remarked, attempting to draw a contrast between Mahomes and Swift.
Trump’s comments on Swift also echo his larger disdain for celebrities who publicly back his political opponents.
While Trump has previously courted celebrity endorsements, he has often been critical of high-profile figures who oppose his political agenda.
First Solar (FSLR) stock price went parabolic on Wednesday as investors cheered Kamala Harris’ performance on the debate stage. The stock soared by over 15%, its best single-day jump since May when it published encouraging financial results. It soared to a high of $240, 22% higher than its lowest point in August.
Kamala Harris debate performance
First Solar and other solar-related companies surged after the first – and final debate – between Donald Trump and Kamala Harris. SunRun shares jumped by over 12% while Enphase Energy soared by over 5%.
SolarEdge stock jumped by over 8% while the closely-watched iShares Global Clean Energy ETF (ICLN), which tracks the top companies in the solar and wind industries, rose by over 3%.
This performance is primarily because of the debate, in which most analysts argued that Trump lost to Harris. Data by Polymarket shows that Harris has a 50% chance of winning the election compared to Trump’s 49%.
The debate was notable because it introduced Harris to most Americans, especially the independent ones.
Therefore, solar energy stocks jumped because Harris has promoted climate change as one of her top agendas. Trump, on the other hand, has focused most of his attention to fossil fuels. He also criticised solar energy for taking so much desert land.
The reality, however, is that stocks that are expected to do well during a presidential term rarely do. A good example of this is companies in the clean energy and prison industries.
When Biden came to power, the theory was that clean energy stocks would soar while fossil fuel ones would underperform. Besides, under Biden, the government passed several bills to promote the transition, including the Inflation Reduction Act (IRA).
However, in reality, companies in the fossil fuel industry have thrived under Biden as US production has surged to over 13 million barrels a day. ExxonMobil’s annual revenue soared from $255 billion in 2019 to over $334 billion in the last financial year. Similarly, Devon Energy’s revenue soared from $6.6 billion in 2019 to over $14.4 billion.
On the other hand, prison and gun-related stocks were expected to crash during the Biden presidency. In reality, Geo Group stock soared to a multi-year high of $18 earlier this year, up by 264% from its lowest point in 2022. CoreCivic also jumped to a high of $16.5, up sharply from the 2021 low of $5.5.
Gun manufacturing companies like Vista Outdoor, Ammo, Smith & Wesson Brands, and Sturm, Ruger & Company have also done better than expected under Biden.
First Solar,a top US solar panel manufacturer, is doing well even as it faces substantial challenges.
Like other solar companies, a key challenge is the high interest rate environment, that has led to weaker demand in the US. When Biden came in, the US had zero interest rates, which made installation relatively affordable to most people.
Interest rates have now surged to a muli-decade high of 5.50% as the Fed worked to slow inflation. This high-rate environment has made solar installation a lower priority for most Americans.
Second, the company has suffered as the trend in ESG has waned in the past few quarters. The most recent data shows that global investors have withdrawn a net of $40 billion from sustainability-focused funds this year. Solar companies formed a key pillar of the ESG movement.
Third, First Solar is contending with increased supply by Chinese solar panel manufacturers, who have flooded the market.
As a result, the company’s revenue growth has not been all that strong. Its revenue in the last financial year stood at over $3.3 billion, a small increase from the $3 billion it made in 2018.
First Solar earnings download
The most recent results showed that First Solar’s revenue for the second quarter rose to $1.01 billion, higher than the $810 million it made in the same quarter last year. Its net income almost doubled to over $349 million. For the year’s first half, the company’s net income rose to over $583 million.
The management hopes that the company will continue doing well. It recently commissioned the expansion work at its Ohio plant while its Alabama facility will start production soon. Its Louisiana facility, with expected capacity of 14.1 GW is expected to come online next year.
Analysts expect that First Solar’s revenue will be $4.48 billion this year, a 35% increase from last year. Revenues will jump to $5.6 billion next year.
Turning to the weekly chart, we see that the FSLR stock price formed a golden cross pattern in August 2022 as the 50-week and 20-week moving averages crossed each other. It then peaked at $306 in August.
The stock has remained above the 50-week and 200-week Exponential Moving Averages (EMA), meaning that bulls are now in control.
It has also jumped above the key resistance point at $231, the upper side of the cup and handle pattern.
Therefore, the stock will likely continue rising as bulls target the next key resistance point at $300, which is about 25% above the current level. This rally will happen as the Fed starts cutting rates and as the election nears.
