Sanrith Descartes
Veteran of a thousand threadban wars
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Yeah AAPL lit off yesterday to the tune of like 2+% and carried the market with it.
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Investing General Discussion
- Thread starter Furious
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Sanrith Descartes
Veteran of a thousand threadban wars
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Quarterly rebalancing should be kicking off. Gonna be interesting when everything is all all-time-highs.
Sanrith Descartes
Veteran of a thousand threadban wars
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Sanrith Descartes
Veteran of a thousand threadban wars
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Vepil
Gamja
- 5,759
- 24,089
I listen to a video with Cathie Wood yesterday speaking about durable goods business' are about to be in bad shape. They have been ordering like mad trying to keep up with demand and pushing prices up on goods because people being at home drove spending from 30% to 41% on durable goods. April showed a 1.5% decrease already and forecasts by summer returning to the normal 30% spending range crashing prices and cancelling lots of orders they made trying to keep up. Places opening up will send Americans back to spending most of their income on services.
Blazin
Creative Title
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One of these days you are going to accidently spell her name right.
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Sanrith Descartes
Veteran of a thousand threadban wars
- 41,458
- 107,509
Sanrith Descartes
Veteran of a thousand threadban wars
- 41,458
- 107,509
GM
GM escalates the electric vehicle arms race
DETROIT, June 16 (Reuters) - General Motors Co(GM) on Wednesday boosted its spending on electric and autonomous vehicles, pulled ahead plans for two U.S. battery plants and forecast stronger-than-expected second-quarter profits.
The No. 1 U.S. automaker said it will now spend $35 billion through 2025 on EVs, an increase of 75% from March 2020 before the COVID-19 pandemic shut down the industry.
Shares of GM were up more than 2.8% in early trading on Wednesday.
GM's additional spending accelerates a global arms race among automakers and technology companies to expand electric vehicle offerings. Consulting firm AlixPartners on Wednesday said investments in electric vehicles over the next five years could total $330 billion, a 41% increase from the firm's five-year investment outlook a year ago.
"EV adoption is increasing and reaching an inflection point," GM Chief Financial Officer Paul Jacobson told reporters on a conference call. "We want to be ready to be able to produce the capacity that we need to meet demand over time."
The challenge for GM and other automakers will be that over the next several years demand from consumers and businesses for electric vehicles won't be on track to grow fast enough to sustain all the new entries to the market, AlixPartners warned in its forecast.
As of now, electric vehicles represent about 2% of total global vehicle sales, and will be about 24% of total sales by 2030, the consulting firm forecast. But EV sales would need to be 34% of total global sales by 2030 to absorb the expected increase in production.
Electric vehicle investments are "well ahead of natural sales demand and neutral total cost of ownership or industry profitability," AlixPartners cautioned in its annual outlook on the global auto industry released on Wednesday.
Automakers are pressing government officials in the United States, Europe and China to use public funds to offset the costs of shifting their fleets from piston engines to batteries, particularly the investments needed for charging infrastructure.
But forecasts for low profits and stranded capacity are not deterring companies from charging ahead in the race to catch electric vehicle industry leader Tesla Inc(TSLA), the world's most valuable automaker. Demands from governments and investors to slash vehicle CO2 emissions, and the preference for EVs among many affluent and younger buyers, are driving the investment boom.
GM previously said it would introduce 30 new EVs globally by 2025, and on Wednesday it said that number will now rise with the higher spending, including additional electric commercial trucks. It also said additional U.S. plant capacity would be used to build electric SUVs. Specifics of the new vehicle numbers and SUV plants involved were not detailed.
As part of the spending, GM said it will build two additional U.S. battery plants by mid-decade, joining plants in northeast Ohio and Spring Hill, Tennessee. GM said details on where those plants will be built will be announced later, but those plants will account for more than half of the latest $8 billion increase in spending.
This marks the second time the Detroit carmaker has increased its EV budget since outlining its goals early last year. In November, the budget increased to $27 billion from $20 billion.
Reuters reported the increased spending plans on Tuesday.
GM's announcement comes less than a month after rival Ford Motor Co(F) upped its EV spending by more than a third to over $30 billion by 2030.
In January, GM set a goal to sell all its new cars, SUVs and light pickup trucks with zero tailpipe emissions by 2035, a dramatic shift away from gasoline and diesel engines.
GM also said it now expects to report better-than-expected results in the second quarter despite the impact of the global chip shortage. It now expects first-half operating earnings will be between $8.5 billion and $9.5 billion due to strong GM Financial results and improved vehicle production as it pulls forward chip supplies from the third quarter. GM previously said it would significantly beat its previous forecast for a first-half profit of $5.5 billion.
GM further said it will launch a third generation of its Hydrotec hydrogen fuel-cell systems with greater power density and lower costs by mid-decade.
Reuters also reported GM Chief Executive Mary Barra is scheduled to meet on Wednesday with key U.S. lawmakers to discuss EVs and vehicle emissions.
GM escalates the electric vehicle arms race
DETROIT, June 16 (Reuters) - General Motors Co(GM) on Wednesday boosted its spending on electric and autonomous vehicles, pulled ahead plans for two U.S. battery plants and forecast stronger-than-expected second-quarter profits.
The No. 1 U.S. automaker said it will now spend $35 billion through 2025 on EVs, an increase of 75% from March 2020 before the COVID-19 pandemic shut down the industry.
Shares of GM were up more than 2.8% in early trading on Wednesday.
GM's additional spending accelerates a global arms race among automakers and technology companies to expand electric vehicle offerings. Consulting firm AlixPartners on Wednesday said investments in electric vehicles over the next five years could total $330 billion, a 41% increase from the firm's five-year investment outlook a year ago.
"EV adoption is increasing and reaching an inflection point," GM Chief Financial Officer Paul Jacobson told reporters on a conference call. "We want to be ready to be able to produce the capacity that we need to meet demand over time."
The challenge for GM and other automakers will be that over the next several years demand from consumers and businesses for electric vehicles won't be on track to grow fast enough to sustain all the new entries to the market, AlixPartners warned in its forecast.
As of now, electric vehicles represent about 2% of total global vehicle sales, and will be about 24% of total sales by 2030, the consulting firm forecast. But EV sales would need to be 34% of total global sales by 2030 to absorb the expected increase in production.
Electric vehicle investments are "well ahead of natural sales demand and neutral total cost of ownership or industry profitability," AlixPartners cautioned in its annual outlook on the global auto industry released on Wednesday.
Automakers are pressing government officials in the United States, Europe and China to use public funds to offset the costs of shifting their fleets from piston engines to batteries, particularly the investments needed for charging infrastructure.
But forecasts for low profits and stranded capacity are not deterring companies from charging ahead in the race to catch electric vehicle industry leader Tesla Inc(TSLA), the world's most valuable automaker. Demands from governments and investors to slash vehicle CO2 emissions, and the preference for EVs among many affluent and younger buyers, are driving the investment boom.
GM previously said it would introduce 30 new EVs globally by 2025, and on Wednesday it said that number will now rise with the higher spending, including additional electric commercial trucks. It also said additional U.S. plant capacity would be used to build electric SUVs. Specifics of the new vehicle numbers and SUV plants involved were not detailed.
As part of the spending, GM said it will build two additional U.S. battery plants by mid-decade, joining plants in northeast Ohio and Spring Hill, Tennessee. GM said details on where those plants will be built will be announced later, but those plants will account for more than half of the latest $8 billion increase in spending.
This marks the second time the Detroit carmaker has increased its EV budget since outlining its goals early last year. In November, the budget increased to $27 billion from $20 billion.
Reuters reported the increased spending plans on Tuesday.
GM's announcement comes less than a month after rival Ford Motor Co(F) upped its EV spending by more than a third to over $30 billion by 2030.
In January, GM set a goal to sell all its new cars, SUVs and light pickup trucks with zero tailpipe emissions by 2035, a dramatic shift away from gasoline and diesel engines.
GM also said it now expects to report better-than-expected results in the second quarter despite the impact of the global chip shortage. It now expects first-half operating earnings will be between $8.5 billion and $9.5 billion due to strong GM Financial results and improved vehicle production as it pulls forward chip supplies from the third quarter. GM previously said it would significantly beat its previous forecast for a first-half profit of $5.5 billion.
GM further said it will launch a third generation of its Hydrotec hydrogen fuel-cell systems with greater power density and lower costs by mid-decade.
Reuters also reported GM Chief Executive Mary Barra is scheduled to meet on Wednesday with key U.S. lawmakers to discuss EVs and vehicle emissions.
Sanrith Descartes
Veteran of a thousand threadban wars
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Blazin
Creative Title
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I'm seeing some weakening data points under the hood but nothing overly alarming yet. This afternoon and how we finish the week is likely to tell us a lot. There could be some violent rotations but overall signs point to up. QQQ could just push us higher hitting the 350+ Range, which should have SPY 430+ . Probability appears to be increasing that we see SPX 4500 by summers end.Blazin
What are you seeing with the next 30 days and the overall market? FOMC is tomorrow but I dont expect them to rock the boat and instead will say "transitory" about 40 times. Keep making new highs, pull back or sidewise?
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Blazin
Creative Title
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Should note that the contrarian in me likes to rear his head when I see things so clearly pointing up. It's hard to see how a selloff would gain any steam, not something I will trade on until the chart in front of me changes but during this next 3 weeks or so I'm definitely trying to stay nimble. Because I think upside is not likely to be more than 5% I don't have a ton of FOMO, in my trading portfolio I'm heavy cash going into today's meeting to try to be set up to take advantage of any volatility that may follow.
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Hateyou
Not Great, Not Terrible
- 16,286
- 42,308
I don’t think inflation numbers have really even started yet. Near my work there are now dozens of Now Hiring signs. Operator positions at $32/hr. Warehouse pickers at $30/hr. No experience type job signs are all $18-$23 an hour. Once they get people hired back in at those wages the price of everything is going to be outrageous. Not to mention gas is expected to climb through the year...guessing $5 a gallon by 2022?
It’s all fucked.
It’s all fucked.
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Sanrith Descartes
Veteran of a thousand threadban wars
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Im working on my mid-year rebalancing/evaluations of my portfolios. Trimmed the dead wood of KMB as it did not live up to my expectations. Previously I dropped NVDA and LMT with the intent to buy back in (for NVDA after the split and expected drop and LMT because I think its going to bounce off resistance and drop). Cut GSAH as its DA underwhelmed.
Borzak
Bronze Baron of the Realm
- 24,574
- 31,878
Steel, aluminum, lumber and oil are up. Takes a while for these things to work down to the consumer enough to notice. Good thing the plan is to spend a ton on infrastructure, they don't use any of that.
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Sanrith Descartes
Veteran of a thousand threadban wars
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Dont sweat it. No way they are passing an infrastructure bill anytime soon.
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Sanrith Descartes
Veteran of a thousand threadban wars
- 41,458
- 107,509
Blazin
Creative Title
- 6,395
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Sanrith Descartes
Veteran of a thousand threadban wars
- 41,458
- 107,509
Sanrith Descartes
Veteran of a thousand threadban wars
- 41,458
- 107,509