Every weekday, the CNBC Investing Club with Jim Cramer releases the Homestretch — an actionable afternoon update, just in time for the last hour of trading on Wall Street. Markets: Stocks are holding onto gains to start the week. The only sector stuck in the red was energy as oil sold off. West Texas Intermediate crude futures fell more than 6% and had one of its worst days since 2022 after Israel did not target Iranian energy facilities in a strike over the weekend. The market may like lower oil prices, but it is still grappling with rising bond yields. The yield on the benchmark 10-year Treasury note is closing in on 4.3%. A reason why interest rates rose was the soft demand for $69 billion of 2-year notes and $70 billion of 5-year notes. Defensive woes: Meanwhile, defensive sectors like consumer staples and health care continue to struggle. Club holding Danaher is lower again — its sixth straight down day — after earnings last week. The quarter itself was better than expected , with a bioprocessing beat and the business on track for high-single-digit growth exiting the year. But investors turned on the stock after management was noncommittal about discussing 2025 figures and analysts lowered their estimates, causing the stock to suffer its worst weekly performance since 2020. This drop looks far too excessive since the bioprocessing recovery thesis did not change. AMD on deck: Several Wall Street research firms published their third-quarter expectations for Advanced Micro Devices ahead of its Tuesday evening report. Many expect the chipmaker to raise its 2024 AI chip sales outlook to more than $5 billion, up from its prior guidance of more than $4.5 billion. We would be surprised if CEO Lisa Su provided 2025 AI chip sales guidance. Raymond James also does not expect the company to talk 2025 numbers either, analysts said in a note Monday, but the current consensus is somewhere around $9 billion to $10 billion in AI chip sales. Outside of AI chips, we’ll be looking for color on personal computer trends and market-share gains in the non-AI chip server space, where AMD primarily competes with struggling Intel . AMD shares are up about 15% since the company reported second-quarter numbers , but they are still off about 15% from their July peak. CrowdStrike court fight : We think Delta Air Lines has a weak case in the lawsuit it filed Friday against Club name CrowdStrike because the cybersecurity provider’s CEO, George Kurtz, is working with every single customer to restore trust after the IT outage, and the company says Delta has been an outlier in this process. In fact, CrowdStrike claims that Delta refused assistance from both itself and Microsoft, according to a lawsuit filed Monday against the Atlanta-based airline. If the CrowdStrike-Delta spat causes a pullback in CrowdStrike share price, we would be buyers. We would have added to our position Friday and Monday if we were not restricted. Up next: Some of the notable companies reporting after the closing bell Monday include Ford Motor , chip software firm Cadence Design Systems , and North Face owner VF Corp . The reporting companies on our radar Tuesday morning include Club name Stanley Black & Decker , fintech players SoFi and PayPal , and McDonald’s . Pfizer , Royal Caribbean Cruises , glass maker Corning and electrical component maker Hubbell also report before the opening bell. For Stanley Black & Decker, its end market demand is subdued due to higher interest rates, but we expect to see more progress on the DeWalt owner’s cost structure and margin expansion program. These efficiency gains should strengthen earnings power once the next big home improvement cycle kicks in. For that, the housing industry is still waiting on lower mortgage rates. (See here for a full list of the stocks in Jim Cramer’s Charitable Trust.) 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.
Every weekday, the CNBC Investing Club with Jim Cramer releases the Homestretch — an actionable afternoon update, just in time for the last hour of trading on Wall Street.
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.
Today’s episode is sponsored by BLUETTI, a leading provider of portable power stations, solar generators, and energy storage systems. For a limited time, save up to 50% during BLUETTI’s exclusive Black Friday pre-sale, now through November 11. Learn more by clicking here.
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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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