Connect with us

Business

Solar stocks are getting slammed as supply chain bottlenecks hit renewables sector

Published

on

Solar stocks are getting slammed as supply chain bottlenecks hit renewables sector


choja | E+ | Getty Images

Solar stocks declined on Tuesday, building on recent weakness, as companies warn about the impact of supply chain bottlenecks and parts shortages.

The Invesco Solar ETF, which tracks the space, slid 7%, bringing its one-month decline to 15%.

SolarEdge was the biggest drag against the fund, dipping 15%. The company reported earnings after the bell on Monday evening. While the company’s results exceeded analyst expectations on both the top and bottom line, SolarEdge warned about margin erosion going forward thanks to higher shipping costs.

“Ocean freight prices have increased by more than 100% over the last months and our pre-negotiated prices have gradually expired and exposed us to higher freight costs worldwide,” Zvi Lando, the company’s chief executive officer, said on the earnings call.

The company did note, however, that it has enough supply to meet demand in the second half of the year. This is in contrast to competitor Enphase Energy, which last week said its second quarter shipments would be constrained by the global chip shortage.

Semiconductors are key components for both battery storage and solar inverters. The shortage has also hit the auto industry, among others, with companies including GM and Ford cutting production at several plants.

SolarEdge’s weakness spread to the rest of the sector on Tuesday, amid investor fears that companies won’t be able to keep pace with record demand.

Solar stocks under pressure

Enphase and SunPower each dipped more than 7%. Sunrun and Sunnova shed 10% and 8%, respectively.

Sunnova reported earnings on April 28 that beat estimates, and the company also said it had stockpiled parts in anticipation of shortage fears. Still, shares are down more than 20% over the last week.

SunPower and Sunrun are slated to report earnings on Wednesday.

Still, some Wall Street analysts remain positive on the sector, noting that despite near-term headwinds the longer-term outlook remains strong.

“We are encouraged by the demand trends and believe long-term investors should buy stock weakness ahead of expected improvements in supply constraints over the coming quarters,” noted JPMorgan.

The group also took a hit from the broader market sell-off on Tuesday. The Nasdaq Composite was the loser among the major averages, dipping more than 2.6% as investors rotated out of high-growth areas of the market.

The Invesco Solar fund gained 233% in 2020, handily outperforming the S&P 500’s 16% gain. For 2021 the fund is down 25% while the S&P 500 has advanced 10%.

– CNBC’s Michael Bloom contributed reporting.

Become a smarter investor with CNBC Pro
Get stock picks, analyst calls, exclusive interviews and access to CNBC TV. 
Sign up to start a free trial today



Source link

Continue Reading
Advertisement
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Business

Palestinian rocket fire, Israeli strikes in Gaza run into second day By Reuters

Published

on

Palestinian rocket fire, Israeli strikes in Gaza run into second day By Reuters



© Reuters. Flames and smoke rise during Israeli air strikes amid a flare-up of Israel-Palestinian violence, in the southern Gaza Strip May 11, 2021. REUTERS/Ibraheem Abu Mustafa

GAZA/JERUSALEM (Reuters) – Palestinians fired uninterrupted barrages of rockets into Israel, as its military pounded Gaza with air strikes through the early hours of Tuesday, in a dramatic escalation of clashes in Jerusalem.

Explosions shook buildings throughout Gaza and rocket sirens sent Israelis in many southern towns scurrying for shelter overnight. Two Palestinians were killed and more than 100 wounded in air strikes, Palestinian officials said.

Six Israelis were wounded by a rocket, medics said.

Nine children were among the 20 dead in Gaza on Monday and scores of rockets were launched into Israel, many that were intercepted by missile defences.

The events were unleashed by Gaza militants firing on the Jerusalem area for the first time since a 2014 war, crossing what Israeli Prime Minister Benjamin Netanyahu called a “red line”.

The upsurge in violence came as Israel celebrated “Jerusalem Day”, marking its capture of East Jerusalem in the 1967 Arab-Israeli war.

The escalation began with confrontations at Al-Aqsa Mosque in the heart of the walled Old City on the compound known to Jews as Temple Mount and to Muslims as the Noble Sanctuary – the most sensitive site in the Israel-Palestinian conflict.

The Palestine Red Crescent Society said more than 300 Palestinians were injured in clashes with Israeli police, who fired rubber bullets, stun grenades and tear gas in the compound. Police said 21 officers were hurt in the skirmishes.

Although the trouble died down after a few hours, there were other focal points of tension, such as the Sheikh Jarrah neighbourhood of East Jerusalem just north of the Old City, where several Palestinian families face eviction from homes claimed by Jewish settlers in a long-running legal case.

Hamas, the Islamist militant group that controls Gaza, set an evening deadline for Israel to remove its police from Al-Aqsa and Sheikh Jarrah. When it expired, sirens wailed in Jerusalem and rockets pounded the city’s outskirts.

Israel views all of Jerusalem as its capital, including the eastern part annexed after the 1967 war in a move that has not secured international recognition.

Palestinians want East Jerusalem for the capital of a state they seek in Gaza and the Israeli-occupied West Bank.

Hamas and the smaller Islamic Jihad militant group claimed responsibility for the rocket fire on Jerusalem.

The Israeli military said it struck targets that included militant operatives, attack tunnels and the home of a Hamas battalion commander.

Of the 20 Palestinians killed on Monday, seven, including three children, were family members who died in an explosion in the town of Beit Hanoun, though it was unclear if it had been cause by an Israeli strike or a Palestinian rocket that had fallen short.

An Israeli military spokesman said about a third of the Palestinian rockets fired had fallen short and caused damage and casualties inside Gaza.

International efforts to stem the violence appeared to have already. A Palestinian official told Reuters that Egypt, Qatar and the United Nations, which have mediated truces between Israel and Hamas in the past, were in contact with the group’s leader Ismail Haniyeh.

Tension had been building for weeks during the Muslim holy month of Ramadan, amid clashes between Israeli security forces and Palestinian protesters prompting international concern that events could spiral out of control.





Source link

Continue Reading

Business

Chinese Producer Prices Surge, bur Consumer Prices Slow Down, Over Inflation By Investing.com

Published

on

Chinese Producer Prices Surge, bur Consumer Prices Slow Down, Over Inflation By Investing.com



© Reuters.

By Gina Lee

Investing.com – China’s producer price jumped in April, but consumer inflation saw modest gains, as soaring commodity prices increased concerns about inflation.

Data from the National Bureau of Statistics (NBS) said that China’s grew 6.8% year-on-year in April, the highest since October 2017. It exceeded the 6.5% growth in forecasts prepared by Investing.com and March’s 4.4% growth.

Meanwhile, the consumer price index (CPI) fell 0.3% in April, lower than the 0.2% contraction in forecasts prepared by Investing.com but above March’s 0.5% decrease. The CPI grew 0.9% , slightly below the 1.0% growth in forecasts prepared by Investing.com while remaining above March’s 0.4% growth.

The widening gap between the CPI and PPI “suggests an uneven recovery of the economy,” said Raymond Yeung, chief China economist at Australia & New Zealand Banking Group (OTC:) Ltd.

“Despite the commodity boom, the service sector has yet to catch up… wages are lagging and the People’s Bank of China (PBOC) will likely keep its policy stance ‘largely neutral,'”  he added.

Investors are also concerned that a commodities boom in the world’s biggest exporter, which was driven by increasing global demand and supply shortages, will lead to inflation globally as manufacturers start passing on higher prices to retailers.

Some central banks, including the U.S. Federal Reserve, maintain the view that any inflation is temporary. However, Chinese policymakers insist that it can limit the impact of commodity prices on the domestic economy and control price growth. Meanwhile, the government also pledged to limit costs to firms by taking further measures to control the raw materials market.

The PBOC is also looking to slow down its stimulus measures rolled out as COVID-19 spread in 2020, due to concerns over the buildup of debt. Economists also expect a slowdown of credit expansion instead of interest rate growth.

Meanwhile, the Communist Party’s Politburo said in April that it will not hand down any sharp reversal of macroeconomic policies.

While China targets to keep its consumer inflation at around 3% this year, the index is expected to be “significantly lower” than the official aim in 2021, said an NBS official.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





Source link

Continue Reading

Business

Benign food prices likely dragged India’s April inflation to three-month low: Reuters poll By Reuters

Published

on

Benign food prices likely dragged India’s April inflation to three-month low: Reuters poll By Reuters



© Reuters. FILE PHOTO: A woman wearing a protective face mask buys fruit in a market, amidst the spread of the coronavirus disease (COVID-19) in Mumbai, India, August 20, 2020. REUTERS/Hemanshi Kamani

By Vivek Mishra

BENGALURU (Reuters) – Indian retail inflation likely eased to a three-month low in April on softening prices for vegetables and other perishable foods, a Reuters poll suggested, bringing the headline rate closer to the midpoint of the Reserve Bank of India’s medium-term target.

That reprieve would provide policymakers with some relief as they seek to keep prices under control amid growing risks that state-wide lockdowns and curfews imposed to tackle a record surge of COVID-19 cases could disrupt supplies and fuel prices.

Consumer price inflation was predicted to cool to 4.20% in April, just above the RBI’s 4% mid-point target and down from March’s four-month high of 5.52%, according to the poll of nearly 50 economists taken over the past week.

Forecasts for the headline figure ranged from 3.90% to 6.15%. The data will be released on May 12 at 1200 GMT.

“Base effects are significantly favourable in April, putting more than 150 basis points downward pressure on headline year-on-year inflation. Beyond this, onion prices have also fallen further,” noted Samiran Chakraborty, chief economist for India at Citi.

“On the other hand, prices of food excluding vegetables continue to exert upward pressure on inflation. Fuel prices remained broadly stable in April, likely due to the state elections.”

India will probably receive an average amount of rain in the 2021 monsoon, the India Meteorological Department said last month. Rain delivers about 70% of the country’s annual rainfall and helps drive up food and grain production, which keeps inflation in check.

However, the recent build-up in input costs, driven by high global commodity prices and supply chain disruptions, remains a major concern for the central bank.

The RBI raised its inflation projection for the first half of this fiscal year to 5.2% last month, still within the central bank’s target range of 2%-6%.

“Despite the expected easing in CPI to 4% levels and downside risks to growth, we expect the RBI to keep rates on hold at its June meeting and all through FY22,” said Teresa John, economist at Nirmal Bang.

“We expect the RBI to rely on yield curve management to ensure the smooth sailing of the borrowing programme and to keep benchmark linked rates from rising so as to aid the recovery. We also expect the RBI to continue with its liquidity support measures for the vulnerable sectors.”

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





Source link

Continue Reading

Trending