Traders work on the floor of the New York Stock Exchange (NYSE) on October 22, 2024 in New York City.
Spencer Platt | Getty Images
This report is from today’s CNBC Daily Open, our international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Like what you see? You can subscribe here.
Steepest drop since pandemic China’s industrial profits in September slumped 27.1% from a year ago, according to the country’s National Bureau of Statistics. That’s the steepest drop since the start of the pandemic in March 2020, based on data from Wind Information – which excludes statistics from most of 2022 when China was under strict zero-Covid policies.
Oil prices dropped on ‘limited damage’ Prices for both Brent and West Texas Intermediate oil futures dropped more than 4% on Monday. This comes after Iranian media described Israel’s strikes over the weekend on its military installations as causing “limited damage.” Citi lowered its forecast for Brent oil prices by $4 to $70 per barrel over the next three months.
Japan’s ruling coalition loses parliamentary majority Japan’s Liberal Democratic Party and its Komeito partner will lose their parliamentary majority, according to projections from public broadcaster NHK and publication Nikkei Asia, while the opposition camp made significant gains. The Japanese yen fell against the U.S. dollar on the political uncertainty.
[PRO] Very, very busy week for markets This week is jam-packed with important earnings and economic data. Five of the Magnificent Seven companies report earnings. The personal consumption expenditures index report for September and the key jobs report for October will also be released this week.
The bottom line
The Nasdaq Composite managed to log a seventh consecutive winning week.
After adding 0.56% on Friday, the index closed at an all-time high, ending the week 0.2% higher.
Other major U.S. indexes, however, didn’t do so well. Both the S&P 500 and Dow Jones Industrial Average shattered their six-week positive streak following their falls on Friday.
The tech-heavy Nasdaq was boosted by Tesla’s monster rally. Investors also looked ahead to Big Tech earnings coming out this week: shares of Meta, Amazon and Microsoft added as much as 1%.
Earnings season has been a mixed bag so far. Even though almost three-quarters of S&P companies have beaten expectations, according to FactSet data, the rate of profit growth has not met expectations, disappointing investors.
As those companies were mostly from sectors outside tech, their losses dragged down the S&P and the Dow, especially, since a good proportion were constituents of the 30-stock index. In fact, around 90% of Dow members ended the week in the red.
For instance, Coca-Cola surpassed Wall Street’s estimates of its earnings and revenue, but its shares still fell. Investors were perhaps disappointed by news that consumers are buying fewer packs of Coke products, as CEO James Quincey said during the post-earnings conference call, and troubled by the headwinds that the company thinks will hamper its growth in 2025.
With five of the Magnificent Seven companies reporting earnings and crucial economic data coming out this week, investors will hope all the numbers line up for a payout – if not of the jackpot magnitude, then at least one that jolts the S&P and Dow back into the green again.
— CNBC’s Brian Evans, Pia Singh and Alex Harring contributed to this report.
On today’s episode of Quick Charge, I, for one, welcome our new insect overlords. I’d like to remind them that, as a trusted media personality, I can be helpful in rounding up others to toil in their underground sugar caves cobalt mines.
We’ve also got the world’s quickest police pursuit vehicle, an Amnesty International report highlighting Tesla and Mercedes’ efforts to improve worker conditions in the Congo, and an exploration of Trump voters’ love for solar power.
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Donald Trump will push fossil fuels and undo renewable energy policies, but it ultimately won’t stop clean energy’s momentum.
Trump has always pushed for more oil drilling and fewer regulations, left the Paris Agreement in his first term as president, says he hates “windmills,” promised to scrap offshore wind on “day one” if he won the 2024 election, and calls climate change a “scam.” And now that he’s won, this is a direct threat to the US’s pledge to reach net zero by 2050. After all, federal policy directly impacts the pace of renewable energy growth, especially when it comes to incentives and research funding.
The Biden administration’s groundbreaking Inflation Reduction Act (IRA), which has spurred a clean energy boom, will be challenged under Trump. Because Republican states have received 80% of the IRA’s money with which they’ve built factories and created thousands of jobs, a complete IRA repeal is unlikely. What’s more probable is that the Republicans phase out tax credits earlier than planned or cap overall funding.
Federal financial support for innovative technologies and projects could also take a hit. Brendan Bell, COO of Aligned Climate Capital, who formerly led the US Department of Energy’s Loan Programs Office, told Electrek:
My partner Peter and I led the DOE Loan Program Office under President Obama. We supported the first utility-scale solar and storage projects, as well as early EV investments – including the first loan to Tesla.
Today, these technologies are commercialized and are propelling the clean energy transition. None of it would have been possible if these programs had been cut off 10 years ago.
Put simply, Trump can’t turn back the tide of clean energy – but he could delay tomorrow’s solutions and the birth of new industries.
BloombergNEF’s “2H 2024 US Clean Energy Market Outlook,” released at the end of October, examined the worst-case scenario, where control of both the Senate and the House leads to a full repeal of the IRA tax credits:
The wind, solar, and energy storage sectors jointly see a 17% drop in total new capacity additions over 2025-2035, with 927 gigawatts (GW) of cumulative build compared to 1,118GW in BNEF’s base case forecast. Wind sees the greatest fall in activity in this scenario with a 35% drop, followed by energy storage at 15% and solar at 13% relative to BNEF’s base case.
That’s a blow we can’t afford at a time when we need to reduce emissions by 50% from 2005 levels by 2030 to avoid climate disasters becoming even worse than they already are.
But all is not lost. The clean energy market isn’t solely driven by federal policy. Over the last decade, solar, wind, and EVs have become more cost-competitive and popular. State policies play a huge role too, and many states are committed to their own clean energy goals regardless of who sits in the White House. States like California, New York, and Washington have ambitious targets to combat climate change, and deep red Texas is No. 1 in the US for both solar and wind.
Corporations are also key players. Companies like Amazon, Google, and Walmart have committed to going 100% renewable, and they’re not about to reverse course. This demand keeps the market for renewables strong. Plus, there’s significant public support for clean energy jobs, and renewables create more employment opportunities than fossil fuels in many regions of the country.
JD Dillon, chief marketing officer of California-based solar tech manufacturer Tigo Energy (Nasdaq: TYGO), said to Electrek, “The march toward renewable clean energy is both inevitable and the right thing to do. In a perfect world, we would eliminate partisanship from the renewable energy conversation because everyone benefits from a cleaner environment and affordable energy. Unfortunately, none of us live in said perfect world.”
The US clean energy sector may slow down, but it’s hard to stop a train that has already left the station. What consequences this slower-moving train will have for the US and the world remains to be seen.
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The world’s largest EV battery maker is advancing a new type of battery, promising higher energy density. According to a new local report, CATL is investing heavily while ramping up its workforce to bring all-solid-state EV batteries to market.
With trial production reportedly kicking off, we could see CATL launch all-solid-state EV batteries sooner than expected.
According to a new local report from LatePost (via CnEVPost), CATL has entered the trial production phase of 20 Ah samples. The news comes after the EV battery giant added over 1,000 workers to its R&D team this year.
The report claimed that CATL is now focused on the final Sulfide phase and has already commenced trial production of 20 Ah samples.
The company’s solution has an energy density of up to 500 Wh/kg for lithium ternary batteries, 40% more than current batteries. However, the report said charging speed and cycle life are not quite where they need to be.
At 20 Ah, the battery solution is finalized and ready for its next stage, production tech exploration.
CATL is advancing all-solid-state EV batteries
The report says after that it’s mainly manufacturing hurdles, that can be overcome with a bigger workforce.
In April, CATL’s chief scientist, Wu Kai, announced that the company had developed a verification platform for 10 Ah all-solid-state EV battery cells. Wu also said CATL aimed to produce all-solid-state EV batteries in small volumes in 2027, the first time the news was made public.
In September, the company’s chairman, Robin Zeng, said CATL’s research into the new battery tech was “second to none.”
Several companies, including Toyota, Mercedes-Benz, Stellantis, and others, are betting on solid-state EV batteries as the future.
According to data from CnEVPost, CATL is dominating the global EV battery market with a 36.7% share through September 2024.
China’s BYD is second with a 16.4% share of the market. BYD is also planning to launch solid-state batteries. At the September 2024 World New Energy Congress, BYD’s head scientist and engineer, Lian Yubo, said solid-state EV batteries could be widely used in five years.
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