CNBC Pro: Analysts expect these 10 global renewable energy stocks to rise despite higher rates, with a 50% upside offering
Skyrocketing energy costs have led to investment in renewable energy around the world.
Swiss investment bank UBS named 10 prominent players in the renewable energy space that are benefiting from this trend and set to outperform over the next year.
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— Ganesh Rao
Japan’s manufacturing activity marks the weakest in more than two years
au Jibun Bank Flash’s Japan Manufacturing Purchasing Manager’s Index recorded a reading of 48.9 for December, marking a second straight month in territory of contraction.
The reading declined from 49.0 in November, marking the weakest reading since October 2020’s 48.70.
The ongoing fall in output has been attributed to “weak global economic trends,” according to the report.
– Lee Ying Shan
Tesla’s Asia suppliers fall after delivery report
Tesla’s suppliers in Asia fell after the company reported its fourth-quarter vehicle production and deliveries numbers for 2022 that fell short of expectations.
The shipment report showed 405,278 total shipments for the quarter and 1.31 million total shipments for the year, lower than expected to see around 427,000 shipments for the final quarter of the year.
Japan’s Panasonic is down 1.82% in early trade in Asia – South Korea’s LG Chem is down 0.17% earlier hours and Samsung SDI is down around 2%.
Shenzhen-listed Contemporary Amperex Technology, also known as CATL, fell 1.7%. Shares of Tesla closed down 12% on Wall Street on Tuesday.
– Ashley Capoot, Jihye Lee
CNBC Pro: Wall Street is bullish on this chip giant, with Morgan Stanley giving it 55% upside
The once-hot chip sector suffered in 2022, but Wall Street appears to be turning more bullish on semiconductor stocks for the year ahead.
Recently, several pros have urged investors to take a longer-term view of the sector given chips’ importance to several key secular trends.
Analysts named one stock they are particularly bullish on, citing its earnings potential and future profitability.
CNBC Pro subscribers can read more here.
— Wheat Tan
Despite reports of production cuts, Apple’s Asian suppliers are mostly trading higher
The US manufacturing purchasing managers’ index has slipped the fastest since May 2020
The U.S. manufacturing price managers’ index, a measure of output, fell in December, the sharpest since May 2020, according to S&P Global.
The index stood at 46.2 in December, up from 47.7 in November, according to data released on Tuesday. Lower prices and declining production levels weighed on the index. Additionally, December saw a sharper-than-expected fall in new sales, with companies acknowledging uncertainty due to the economic backdrop.
– Carmen Reinicke
Tesla loses 13% and hits new 52-week low
The stock slipped more than 13%, hitting levels not seen since August 2020. The drop comes after the stock’s worst annual performance — Tesla fell 65% in 2022.
– Carmen Reinicke
Apple’s market cap falls below $2 trillion
A sell-off in Apple shares pushed the iPhone maker’s market cap below $2 trillion on Tuesday.
Shares fell 4% on news that production of some items will reportedly be cut due to weak demand. Concerns about iPhone shipments during the holiday season have mounted in recent weeks, putting stocks under pressure as closures have hit Apple’s main supplier in China.
The decline in shares contrasts with a year ago, when Apple became the first US company to reach a $3 trillion market cap.
Apple was the last of the mega-cap tech stocks to hover above the $2 trillion mark.
— Samantha Subin
US will avoid recession in 2023, says Goldman Sachs
Goldman Sachs has a mismatched forecast for the US economy in 2023.
“Our economists continue to believe the US will avoid a recession as the Fed succeeds in soft-landing the economy,” analysts wrote on Tuesday.
“This mismatched forecast partly reflects our view that a period of below-potential growth is enough to gradually rebalance the labor market and dampen wage and price pressures,” the statement said. “But it also reflects our analysis, which suggests that the strain from fiscal and monetary tightening will ease sharply over the next year, contrary to the consensus view that the lagged impact of rate hikes will cause a recession in 2023.”
In addition, the bank today upgraded its Q4 22 GDP growth forecast by 10 basis points to +2.1% on a surprisingly strong release of construction spending in November
“The disconnect between the resilience of the US economy in 2022 and the downturn that stocks have experienced has been a key narrative of the past year,” Goldman said. “And whether that disconnect persists, or the economy matches the market downturn, or the market recovers after an economic soft landing, could at least be part of the narrative of 2023.”
– Carmen Reinicke