Two weeks into the second half of the year, we put together a quick look at the top three performers and the bottom three in Jim Cramer’s Charitable Trust, the stock portfolio we use for the Investing Club. The first full trading week of July saw Wall Street under some pressure Friday after a multisession winning streak. Gains month-to-date of roughly 2.4% for the Nasdaq add to the tech-heavy index’s best first half (up nearly 32%) in four decades. There are some new names on both the July leaders and July laggards list since we did this exercise looking at our January to June portfolio performance. July leaders HAL mountain 2023-06-30 Halliburton stock performance since June 30 close Oilfield services giant Halliburton (HAL) flips from a first-half loser (down 16%) to top our second-half winner. Month-to-date, HAL gained nearly 12%, a recent rally that we took advantage of Friday morning by booking in some profits. During our Monthly Meeting on Wednesday, we told members we were thinking about a HAL trim. We downgraded the stock in anticipation to a 2 rating . The recent HAL rally can be attributed to a feeling that oil and natural gas producers, like Club names, Pioneer Natural Resources (PXD) and Coterra Energy (CTRA), might need to boost production and that means they’d need the help of a Halliburton. We’ll look for more color around production trends in North America when the company reports its second-quarter earnings this coming Wednesday before the opening bell. CRM 1M mountain Salesforce stock performance month-to-date. Salesforce (CRM) advanced 8.6% in July after a 59% first-half advance. The enterprise software giant announced it will be increasing list prices for some of its top-selling products for new and existing customers by an average of 9%. This is the first time the company has raised prices in seven years. The changes will go into effect next month. The company’s latest move should help top-line growth, expand margins, and boost cash flow. So far this year, CRM stock has also benefitted from getting costs down through personnel cuts and reducing office space. It also bought back stock. It looks like CRM’s quarter will come in the latter part of August. META 1M mountain Meta stock performance month-to-date. Meta Platforms (META) remains a top performer in the portfolio to start the second half, rising 7.6% for the first two weeks of July after more than doubling in the first half. The Facebook and Instagram parent made another 52-week high intraday high of $316.24 on Thursday following the launch of its Twitter rival. Meta’s Threads platform surpassed 100 million signups since last week’s debut. However, there are recent signs suggesting activity has cooled off a bit. More broadly, investors have been sticking with Meta for its leadership in generative AI to attract and keep users on its platforms while offering advertisers AI-powered tools to improve monetization. Jim predicts Meta will deliver a strong second quarter on Jul 26. NVDA mountain 2023-06-30 Nvidia stock performance since June 30 close Nvidia (NVDA), one of our leading tech holdings in the portfolio, has continued its momentum to start the second half of the year. Shares of the semi-king are up 7.5% over the last two weeks of July. (Nvidia and Apple (AAPL) are our only own-it, don’t-trade-it stocks.) To start out the first half of 2023, Nvidia was our top-performing stock in the portfolio with nearly a triple. Nvidia, whose market cap now surpasses $1 trillion, has led the tech sector and the broader market rally, convincing investors like us that its infrastructure and technology needed to fuel the market’s artificial intelligence demand is and will be essential to bring the nascent technology to the mainstream. Nvidia is set to release earnings on Aug. 23. July laggards FL mountain 2023-06-30 Foot Locker stock performance since June 30 close Foot Locker (FL) dropped about 6.5% to start the month, and it was our worst first-half loser (down more than 28%). This week, Baird cut its price target on the footwear and athletic apparel retail to $24 per share from $32 and kept its neutral rating. The analysts warned that FL’s high exposure to lower-income consumers could pressure the second half of the year. A tough macro backdrop is an overhang for CEO Mary Dillon as she tries to resurrect poor financials. She did it with Ulta Beauty (ULTA) back in 2013, and we believe she can do it a second time with Foot Locker. When initiating our position in the shoe retailer in March, we knew about the obstacles. However, the turnaround may take longer than initially expected. The difficulties surrounding Foot Locker are why we have not added to our position since its disappointing first quarter, but we still have faith in Dillon’s leadership and want to be in the stock to catch the potential wave when the tide turns. Second quarter results are due mid-August. PANW mountain 2023-06-30 Palo Alto Networks stock performance since June 30 close Palo Alto Networks (PANW) dropped more than 5.5% month-to-date, moving it to the July laggards list after its 83% first-half advance that had landed the leaders list. Earlier this week, Microsoft (MSFT) announced an expansion of its cybersecurity offerings. It’s a space dominated by PANW, so it’s no wonder why the stock sank 7% on Wednesday. It did, however, claw back some of those losses. Palo Alto CEO Nikesh Arora told Jim in a “Mad Money” interview that he wasn’t concerned about Microsoft products because they’re for an area of the cybersecurity market that his company has been in for years. Jim said he was not worried about Wednesday’s sell-off and still sees PANW as the best way to play cybersecurity. PANW is expected to issue earnings late next month. LLY mountain 2023-06-30 Eli Lilly stock performance since June 30 close Eli Lilly (LLY) shares fell 4% in the first two weeks of July. Shares of the pharmaceutical company have recently been pressured after a Reuters report that cited a study that found most patients using weight loss drugs like Novo Nordisk ‘s (NOVO) Ozempic, stop within a year. Another article last week reported that several patients using Ozempic had thoughts of suicide or self-harm. These headlines were negative read-throughs to Club holding Lilly, which makes the diabetes drug Mounjaro that’s being reviewed for obesity by regulators. Although we cannot fault anyone who wants to take profits in Eli Lilly after another stretch of significant outperformance (up 28% in the first half of 2023), we think the selloffs from both stories will prove to be overreactions. Lilly started to claw back some of its recent losses in a good session Friday. Jim maintains that Lilly’s Mounjaro will be the best-selling drug in history and that investors should not sell LLY stock. He also likes the company’s pipeline which includes a potential Alzheimer’s treatment, which would be a huge win for the company long term. Lilly is due to report its quarter Aug. 8. JNJ mountain 2023-06-30 Johnson & Johnson stock performance since June 30 close Johnson & Johnson was under pressure to kick off the second half, falling nearly 3.5% month to date and there are a couple of reasons for that. Health care is an out-of-favor defensive sector in a market attracting high-growth tech names. The other headwind : The company is awaiting the outcome of a pivotal talc trial. The verdict, which is expected any day now, could determine whether the many plaintiffs suing the company elsewhere will accept or reject J & J’s settlement offer of $8.9 billion. The ongoing legal disputes have been an overhang on J & J all year as the stock fell more than 6% in the first half. Given the uncertainty, we have held off on buying more of the drug maker. The talc trials have someone dimmed the light on the separation of its consumer products division from its pharmaceutical and medical technology units, which we viewed as a positive for shareholders. J & J reports earnings this coming Thursday. (Jim Cramer’s Charitable Trust is long HAL, META, CRM, LLY, PANW, FL, PXD, CTRA, MSFT, NVDA, JNJ, AAPL. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., July 12, 2023.
Brendan McDermid | Reuters
Two weeks into the second half of the year, we put together a quick look at the top three performers and the bottom three in Jim Cramer’s Charitable Trust, the stock portfolio we use for the Investing Club.
EnBW He Dreiht offshore wind farm (Photographer: Rolf Otzipka)
Germany’s largest offshore wind farm hit a big milestone: The first turbine at EnBW’s He Dreiht project has produced its first kilowatt-hour of electricity and sent it into the grid.
More turbines are expected to come online over the coming weeks. European energy provider EnBW has already installed 27 of the wind farm’s 64 turbines, all of which are scheduled to be commissioned by summer 2026.
Peter Heydecker, EnBW board member for Sustainable Generation Infrastructure, described the November 25 milestone as a “significant moment for EnBW.” With 960 megawatts (MW) of total capacity, He Dreiht is now Germany’s largest offshore wind farm.
Vestas supplied the 15 MW turbines, marking their world debut. Nils de Baar, president of Vestas Northern and Central Europe, said the giant turbine’s technology sets a new standard for offshore wind. “Its efficiency and performance enable a significant increase in energy yield per turbine.”
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Just one rotation of the 15 MW turbine’s rotor can power the equivalent of four households for a day. The hub stands 142 meters (466 feet) tall, and the rotor’s 236-meter (774-foot) diameter sweeps a 43,742-square-meter (10.8-acre) area — roughly the size of six football fields. To put the scale into perspective, EnBW’s first offshore project, Baltic 1 in 2010, used 2.3 MW turbines.
EnBW wrapped up the wind farm’s internal cabling in August. Those lines connect all the turbines and feed into a converter platform operated by transmission system operator TenneT. That’s where the power is collected, converted from AC to DC, and sent to shore through two high-voltage DC cables.
Once complete, He Dreiht will generate enough electricity to power about 1.1 million households. The project is being built without state funding and sits roughly 85 kilometers (53 miles) northwest of Borkum and 110 kilometers (68 miles) west of Heligoland. EnBW’s offshore office in Hamburg is coordinating the build.
A partner group made up of Allianz Capital Partners, AIP, and Norges Bank Investment Management owns 49.9% of the project. Total investment comes in at around €2.4 billion.
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The Yangwang U8L is among the most expensive Chinese vehicles, starting at about $180,000. To prove it’s built for just about anything, BYD dropped a 2-ton tree on it, three times, and the ultra-luxury pretty much brushed it off.
BYD drops a tree on its ultra-luxury SUV during testing
BYD launched the Yangwang U8L in September, a long-wheelbase version of the U8 off-road SUV. The U8 was first introduced in September 2023 as the first vehicle from BYD’s ultra-luxury sub-brand, Yangwang.
Yangwang is a new energy vehicle (NEV) brand that sells high-end plug-in hybrids (PHEVs) and 100% battery electric (BEV) vehicles as BYD expands into new segments.
The U8L is Yangwang’s fourth vehicle, following the U8, U9, and U7. It’s available in China with a quad-motor extended-range electric vehicle (EREV) system, delivering a CLTC range of 200 km (124 miles) on battery power alone.
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A 2.0-liter turbocharged gasoline engine serves as a generator, delivering a combined CLTC range of 1,160 km (720 miles).
Measuring 5,400 mm in length, 2,049 mm in width, and 1,921 mm in height, the Yangwang U8L is even bigger than the Rolls-Royce Cullinan and Range Rover Long Wheelbase.
BYD’s ultra-luxury SUV is priced from 1.28 million yuan ($180,000), making it one of the most expensive models from a Chinese brand.
It may look pretty, but the Yangwang U8L is built for far more than just good looks. Like the U8, the long-wheelbase version is equipped with advanced features such as emergency float mode, which allows it to float on water for up to 30 minutes, tank turns, crab walking, and more.
To prove its durability, BYD engineers put the luxury SUV through the paces, dropping a massive 2-ton tree on it, not once, but three times.
During the final drop, the company said the maximum impact energy reached 50.4 kJ, or about 37,200 lb-ft. After three consecutive drops, the Yangwang U8L barely even got a scratch. The body structure remained intact, the door still opened, the columns didn’t bend, and the vehicle could even drive like normal.
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Former reality TV contestant Sean Duffy. Photo by Gage Skidmore
The White House will formally announce its planned hike in US fuel costs by $23 billion tomorrow, according to Reuters.
Since the beginning of this year, the occupants of the White House have been on a mission to raise costs for Americans.
This mission has encompassed many different moves, most notably through unwise tariffs.
But another effort has focused on changing policy in a way that will raise fuel costs for Americans, adding to already-high energy prices.
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The specific rollback tomorrow focuses on a rule passed under President Biden which would save Americans $23 billion in fuel costs by requiring higher fuel economy from auto manufacturers. By making cars use less fuel on average, Americans would not only save money on fuel, but reduce fuel demand which means that prices would go down overall.
The effort to roll back this rule was initially announced on the first day that Sean Duffy started squatting in the head office of the Department of Transportation. Duffy notably earned his transportation expertise by being a contestant on Road Rules: All Stars, a reality TV travel game show.
Then in June, Duffy formally reinterpreted the Corporate Average Fuel Economy (CAFE) standard, claiming falsely that his department does not have authority to regulate fuel economy.
Republicans in Congress even got into effort to raise your fuel costs, as part of their ~$4 trillion giveaway to wealthy elites included a measure to make CAFE rules irrelevant by setting penalties for violating them to $0. In addition, it eliminated a number of other energy efficiency and domestic advanced manufacturing incentives.
Duffy’s department then told automakers that they would not face any fines retroactively to 2022, which saved the automakers (mostly Stellantis) a few hundred million dollars and cost American consumers billions in fuel costs.
Tomorrow, Duffy is expected to make an announcement formally changing CAFE rules, lowering the required fuel economy for 2022-2031 model year vehicles, even despite all of the other changes in trying to make the rules unenforceable. The theory behind this would be to make it harder to later enforce the rules, and to allow automakers to get off with more pollution, and to increase fuel demand and fuel prices for longer until a real government returns to power and starts doing its job to regulate pollution.
We don’t know the specifics yet of what exactly the announcement will entail, but given the general trend of recent announcements, it will likely be a full rollback of the improvements to the rule made by President Biden.
Tomorrow’s announcement is expected to be attended by executives from the Big Three American automakers – GM, Ford, and Stellantis (formerly Chrysler).
Their presence on stage suggests that their prior commitments to energy efficiency and electrification were not serious, as they are now joining in an effort to increase your fuel costs, just to save themselves a few engineering dollars on having to provide something other than the disgusting, deadly land yachts that are a blight on the nation’s roads and are murdering pedestrians at a 50-year high.
Tomorrow’s announcement is just one many efforts currently being undertaken by executive departments to try to raise your fuel costs.
One of the largest is the EPA’s attempt to delete the “Endangerment Finding,” the government’s recognition of the scientific fact that climate change is dangerous to humans. The EPA is undertaking this effort so that it can then eliminate other rules intended to reduce pollution, with the goal of making you more beholden to fossil fuels.
Even the Energy Department’s own numbers, signed off on by oil shill Chris Wright, say that changes sought by the White House will increase gas prices by $.76/gal.
Like most other governmental changes, today’s change will likely go up for public comment, as required by the Administrative Procedures Act. We’ll let you know when they do.
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