These 5 Stocks Could Benefit From Rising Power Demand

1 hr 14 min ago

Bank of America is predicting a big jump in electrical demand—with some power companies better-positioned to capitalize than others.

The bank said the utilities it sees as benefiting the most from regional growth are DBA Sempra (SRE), Pinnacle West Capital (PNW), TXNM Energy (TXNM), Entergy (ETR), and Northwestern Energy Group (NWE). The analysts have buy ratings on all five stocks.

BofA analysts wrote in a note to clients that after two decades of stagnant electricity demand expansion, “there is now evidence that demand growth has returned, driven by the re-shoring of industry, the development of data and crypto mining centers and the electrification of buildings, transportation, and infrastructure.”

The analysts said that they have targeted those five companies because the regions they cover— Texas, the Southwest, the Northwest, and the 14 states in the Southwest Power Pool—are likely to have the greatest growth rates. Shares of all five are higher year-to-date.

–Bill McColl

Gold Price Levels to Watch After Record Highs

2 hr 42 min ago

Gold futures were down about 0.5% Monday morning, after hitting record highs late last week above $2,700 an ounce.

The Federal Reserve’s jumbo half-point rate cut earlier this month contributed to recent bullish momentum, and gold received an additional boost last week from China announcing significant stimulus measures and rate reductions in a bid to revive its sluggish economy. Meanwhile, escalating concerns of a broader conflict developing in the Middle East have also underpinned support for the metal.

The precious metal has moved sharply higher after breaking out from a rectangle in July, a chart formation that indicates a continuation of the commodity’s strong uptrend.

Investors should monitor price targets on gold's chart projected using the measuring principle and bars pattern at $2,862 and $3,195, respectively.

During retracements, investors should watch the $2,414 level that may attract buying interest near the rectangle formation's top trendline.

Read the full technical analysis piece here.

–Timothy Smith

U.S.-Traded Chinese Stocks Extend Rally

3 hr 29 min ago

Chinese stocks surged again Monday morning, extending a rally that kicked off last week following news that authorities in Beijing were launching a wide-ranging economic stimulus program.

The Nasdaq Golden Dragon China Index (HXC), an index of 64 China-based companies traded in the U.S., was up more than 6% early Monday, as conglomerate Alibaba Group Holding (BABA), PDD Holdings (PDD), parent of online marketplace Temu, and online retailer JD.com (JD) all moved higher.

The iShares MSCI China ETF (MCHI), which gained 20% last week, was up another 3% on Monday.

Stellantis Plunges as Chrysler Parent Cuts Outlook

4 hr 20 min ago

Stellantis (STLA) shares plunged in premarket trading after the Chrysler and Jeep parent issued a profit warning, noting it is cutting excess North American inventory amid a “deterioration in global industry dynamics” and competition from Chinese rivals.

The company said its fiscal 2024 adjusted operating income margin now is expected to be between 5.5% and 7.0%, versus its previous projection for "double digit" levels, with about two-thirds of the reduction "driven by corrective actions in North America."

Stellantis shares were down 13% in premarket trading, at around $14, trading at their lowest level since late 2022.

Shares of rivals General Motors (GM) and Ford Motor (F) were each down more than 3% in premarket trading.

–Nisha Gopalan

Futures Point to Lower Open for Major Indexes

5 hr 18 min ago

Futures tied to the Dow Jones Industrial Average were down 0.1%.

S&P 500 futures were down 0.2%.

Nasdaq 100 futures were off 0.4%.

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