Before the bell: with friends like these, who needs enemies

Trump puts pressure on the electric vehicle sector, while Powell slows down the stock rally. Alibaba’s earnings are coming up shortly.

Anyone who thought Musk might receive favorable treatment in a Trump administration may soon need to think again. Tesla (-5.8%) dropped sharply yesterday after two independent sources told Reuters that Trump plans to eliminate subsidies for electric vehicles in the U.S. Cutting the $7,500 subsidy would be a big blow for Elon Musk. Competitors like Rivian (-14.3%) and Lucid (-4.6%) also took a step back. Fed Chair Powell dampened market expectations for further rate cuts, as the U.S. economy appears to be performing well. Data released this morning in China showed retail sales growth of 4.8%, significantly higher than analysts had anticipated.

In Belgium, real estate player Nextensa released earnings. Profits are under slight pressure, though they expect rental income in 2024 to exceed 2023 levels. In the Netherlands, insurer Aegon raised its 2024 outlook and announced a new 150 million euro share buyback program starting in January. Our attention is now on Alibaba’s upcoming earnings report.

Record revenue in the making

It’s not just the Paris Olympics setting records; behind the scenes, live video specialist EVS is aiming for a new record, too. Investors will soon react to the quarterly report showing EVS on track for record revenue. The company is targeting revenue between 190 and 200 million euros, aiming for the high end of that range. Gross margins are improving, and EBIT is expected to fall between 40 and 46 million euros. Investors should keep in mind, however, that EVS typically performs better in even-numbered years. These years feature more sporting events, which drive EVS’s revenue. Notably, the company projects 2025 revenue to grow compared to 2023 based on the order book. Reading between the lines, it’s clear they are comparing to 2023—not the anticipated record year of 2024. Next year may be less strong.

Investors live in the future

And that’s meant quite literally. The past is less relevant than what lies ahead. This is why we’re expecting a lower opening for Applied Materials, even though its results beat analyst expectations. The California-based semiconductor specialist posted earnings per share of 2.32 dollars and revenue of 7.05 billion dollars, surpassing forecasts of 2.19 dollars per share and 90 million dollars above revenue expectations. The issue? China. Revenue there dropped by 28% to 2.14 billion dollars. The impact of trade restrictions is weighing on the company’s revenue, and with Trump in the White House, investors face added uncertainty. Investors who look to the future might consider selling.

Did you know…

that Nike raised its dividend by 8.1% to 0.40 dollars per quarter yesterday? This marks the 23rd consecutive year that Nike has increased its dividend. At the current stock price, the dividend yield is 2.11%.

This article was translated from Dutch and was originally published on Spaarvarkens.be.