Nio is the better way to profit from China’s growing market for electric cars
Two of the most popular stocks on the planet right now are electric vehicle manufacturers Nio and Tesla. Together, they trade about 200 million share daily, thanks in large part to young individual investors hungry for a piece of the action.
The House of Representatives on Wednesday unanimously passed a bill that threatens to delist Chinese companies such as Alibaba Group Holding and JD.com from U.S. exchanges unless U.S. regulators are able to inspect their financial audits within three years.
Of the China-related measures introduced in recent months, the bill could have the broadest impact on investors’ portfolios—though the logistics to implement the measures likely means the fallout won’t be sudden or as drastic as it may sound.
Southeast Asian stocks, hit particularly hard by the shutdown of tourism and other service industries, are making a comeback as optimism grows over a return to travel.
The MSCI Asean Index has surged 14% in an eight-day winning streak, almost double the 7.4% rally in the MSCI Asia Pacific Index over the same period. At its highest since March, the gauge of Southeast Asian shares has narrowed the gap with its peers but still remains down about 14% for the year. The broader Asian gauge is up 8%.
Investors are jumping on Southeast Asian stocks as part of a global rotation into value and out of growth sectors after positive results from a Pfizer Inc. vaccine boosted sentiment.
Governments across the region are looking to ease social distancing measures, with Singapore and Hong Kong announcing Wednesday they will start an air travel bubble replacing quarantine with Covid-19 testing from Nov. 22.
“The vaccine news opens up sectors under great stress like airlines and hotels, ” Leon Goldfeld, head of multi-asset solutions for Asia Pacific at JPMorgan Asset Management, said in a press briefing Wednesday, speaking about the wider trend. “What we’ve seen is a massive rotation in the market from growth to value.”
The value rotation will likely last three to six months and has “some room to run, ” he added.
GE has outperformed its industrial peers in October, as the stock rose to a more than 4-month high before pulling back
Shares of General Electric Co. surged to the highest price seen in four months before pulling back, as Wall Street has gotten a little more optimistic on the outlook ahead of the industrial conglomerate’s earnings report.
The stock GE climbed as much as 4.0% to an intraday high of $8.03, the highest price seen since June 9, before pulling back to trade down 0.7%. It has still soared 23.0% in October, making the stock the best month-to-date performer among the SPDR Industrial Select Sector exchange-traded fund’s XLI components, and the fourth-best performer in the S&P 500.
Occidental probably needs at least average WTI prices in the next fiscal year and the years after that to deleverage.
Coronavirus demand destruction and the OPEC price war changed a viable deleveraging plan into a very speculative one.
In more normal industry times, the preferred stock requirements and additional debt would have been more than offset by the cash flow of the acquired properties.
The debt due schedule went from routine to extremely challenging. So far, management has been up to the challenge.
Occidental Petroleum (NYSE:OXY) appears to have weathered the worst of fiscal year 2020. Now, if the company can get the original deleveraging program back on track, then there is still a good chance for the company to benefit from the acquisition.
No one saw the coronavirus demand destruction when the bidding for Anadarko Petroleum began. Had that been the case, obviously, the bidding, if any, would have been very different.
Now, though, it might be time to look at the “casino stocks” that have a reasonable chance of heading towards investment-grade designation.