Today’s top stories include the news that Cathie Wood has snapped up Robinhood shares ahead of its earnings announcement, while automation specialist Emerson says it’s selling its climate tech unit. Swiss asset manager Vontobel warns investors not to buy the dip in tech stocks like Amazon and Meta just yet, CNBC reveals the cheap MSCI World stocks to watch, and Tesla is said to be in talks with mining firm Glencore.
Cathie Wood buys Robinhood
Notoriously active investor Cathie Wood has been snapping up Robinhood [HOOD] ahead of its Q3 earnings tomorrow. More than 185,000 shares were added to the Ark Next Generation Internet ETF [ARKW] and the Ark Fintech Innovation ETF [AKRF] last week, the investor’s first purchases of Robinhood since May. The Robinhood share price closed on Friday 28 October at $11.50, 69% above its 52-week low of $6.81 set on 16 June, yet the stock is down 35.2% year-to-date.
Emerson sells majority of climate unit
Automation specialist Emerson [EMR] has agreed to sell a 55% stake in its climate technologies unit for $14bn to Blackstone [BX]. “The business is poised for accelerated growth as it leads the way in helping consumers and businesses shift to more energy-efficient heating and cooling products as part of their carbon reduction efforts,” said Blackstone’s global head of private equity Joe Baratta in a statement. Emerson will use the proceeds from the deal in M&A to boost its portfolio.
Don’t buy the tech dip, yet
The big names in the world of social media and the cloud, à la Amazon [AMZN] and Meta [META], took a beating last week amid fears of a growth slowdown. Despite the sell-offs, investors shouldn’t dip into these tech stocks just yet, cautioned Dan Scott, head of multi-asset management at Swiss asset manager Vontobel. “[T]hat’s likely not going to see a sustainable recovery until you see pivot in Fed speak,” Scott told CNBC on Friday.
Cheap MSCI World picks
Skyrocketing inflation and the risk of recession are making some stocks look incredibly cheap. CNBC Pro screened the MSCI World index for stocks that have a robust earnings growth as well as a 10%-plus upside to the consensus price target with 40% or more of analysts rating it a ‘buy’. Top of the pile was Shell [SHEL.L], then Pfizer [PFE], followed by British American Tobacco [BATS.L]. Qualcomm [QCOM] and Porsche [PAH3.DE] were also listed in its 12 picks.
Tesla in talks with mining giant
EV maker Tesla [TSLA] has held talks to acquire a 20% stake in Glencore [GLEN.L], according to a Financial Times exclusive. The mining and commodities group is keen on adding lithium to its trading business, it was reported in September, although it doesn’t currently own any lithium mines. Elon Musk has previously tweeted about his desire to secure Tesla’s long-term supply of the mineral, which is in hot demand due to its critical role in EV battery production.
GSK could get a boost from Q3 results
Pharmaceutical company GSK [GSK.L] hasn’t been immune to the effects of inflation as higher prices can eat into profit margins. Nevertheless, the share price is up 5.6% in the past month ahead of earnings tomorrow. In the Q2 earnings release, GSK raised its full-year sales and operating profit guidance. CEO Emma Walmsley said in a statement that she was “confident in delivering the long-term growth outlooks we set out for shareholders last year.”
BP’s Q3 profits in focus
Following Shell [SHEL.L] posting its second-biggest quarterly profit on record last week, attention will turn to fellow oil major BP [BP.L] when it reports Q3 earnings today. On the Q2 earnings call, BP indicated that refining margins should “remain elevated in the third quarter”, however, there’s a possibility that margins could be squeezed, leaving potential for results to underwhelm investors hoping for another bumper set of results.
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