US Stocks On Edge As Investors Gear Up For Nvidia, Retail Earnings: Analyst Updates S&P 500 Target For 2025, Says Market Is 'Expensive'
U.S. stocks could get off to a tentative start on Monday after investors switched to a risk-on mode last week as the post-election rally lost some of its steam.
Economic data and Federal Reserve chair Jerome Powell’s comments about the future of rate cuts put the sentiment on a dampener. Powell said the Federal Open Market Committee (FOMC) is not in a hurry after economic data showed strength.
Expectations of a further 25 basis point rate cut in December have fallen to just 62% now, down from 72% last week, according to CME Group’s FedWatch tool.
| Futures | Performance (+/-) |
| Nasdaq 100 | 0.44% |
| S&P 500 | 0.09% |
| Dow Jones | -0.20% |
| R2K | 0.52% |
In premarket trading on Monday, the SPDR S&P 500 ETF Trust SPY was up 0.13% to $586.50 and the Invesco QQQ ETF QQQ rose 0.45% to $498.78, according to Benzinga Pro data.
Cues From Last Week:
All three major indices registered a decline last week, with the tech-heavy Nasdaq seeing a bigger fall. This was the week prior, Dow Jones and S&P 500 registered their best week of the year after the election of Trump as the 47th U.S. president.
On the economic data front, U.S. export prices increased by 0.8% in October, while import prices rose by 0.3% month-over-month in October. U.S. retail sales rose 0.4% month-over-month in October compared to a revised 0.8% increase in September, topping market estimates of 0.3%
Most sectors on the S&P 500 closed on a negative note, with information technology, communication services, and healthcare stocks recording the biggest losses on Friday.
However, utilities and financials stocks bucked the overall market trend, closing the session higher.
| Index | Week’s Performance (+/-) | Value |
| Nasdaq Composite | -2.92% | 18,680.12 |
| S&P 500 | -2.28% | 5,870.62 |
| Dow Jones | -2.34% | 43,444.99 |
| Russell 2000 | -5.04% | 2,303.84 |
Insights From Analysts:
Wells Fargo’s Jay Bryson thinks the recent surge in inflation could needle the Fed to reevaluate its pace of rate cuts.
“Slower progress on inflation in recent months may prompt the Fed to reevaluate its pace of easing moving forward,” he said.
On the other hand, investors will keep a close eye on earnings from AI bellwether Nvidia Corp. NVDA, while Tesla Inc. TSLA investors will be interested in President-elect Donald Trump’s policy outlook on regulations for autonomous driving.
Ryan Detrick, chief market strategist at Carson Group, maintained his bullish outlook on equities.
“The S&P 500 is looking at back-to-back 20% gains. The four previous times it did this (since WWII) the next year did this: 2.6%, 31%, 26.7%, 19.5%.”
He underscored that while it’s not unwise to be cautious about the ongoing rally, investors should not base their concerns on the upward movement so far.
Nathan Peterson, Director of Derivatives Analysis at the Schwab Center for Financial Research, laid out the thesis for market movements for the next week.
“I wouldn’t be surprised to see an attempt to rally from these levels at the beginning of the week if we can bounce from today’s lows into the close,” Peterson said.
“Further rotation out of the largest market cap sector, Information Technology, or a negative response to Nvidia’s guidance, leading to a further downdraft in overall price action.”
Peterson continues to maintain a cautious stance and noted that investors will wait for Nvidia earnings with bated breath.
See Also: How To Trade Futures
Upcoming Economic Data
While this week’s economic calendar is not as heavy as last week’s, some crucial data is scheduled for the days ahead.
- On Monday, the home builder confidence index is set to be released at 10 a.m. ET.
- Chicago Fed President Austan Goolsbee will speak at 10 a.m. ET.
- On Tuesday, data on new home construction and building permits will be released at 8:30 a.m. ET.
- Chicago Fed President Austan Goolsbee will speak at 12:25 p.m. ET.
- On Wednesday, Fed Gov. Lisa Cooks will speak at 11 a.m. ET.
- Fed Gov. Michelle Bowman will speak at 12:15 p.m. ET.
- On Thursday, initial jobless claims data will be released at 8:30 a.m. ET.
- Philadelphia Fed manufacturing survey will be released at 8:30 a.m. ET.
- Cleveland Fed President Beth Hammack will speak at 8:45 a.m. ET.
- Existing home sales data and leading economic index will be released at 10 a.m. ET.
- Kansas City Fed President Jeff Schmid will speak at 1:10 p.m. ET.
- Fed Vice Chair for Supervision Michael Barr will speak at 4:40 p.m. ET.
- On Friday, the S&P U.S. Services and Manufacturing Purchasing Manager’s Index will be released at 9:45 a.m. ET.
- Consumer sentiment data will be released at 10 a.m. ET.
- Fed Gov. Michelle Bowman will speak at 6:15 p.m. ET.
Stocks In Focus:
- Tesla Inc. TSLA will be in focus after reports of Trump’s transition team looking to create a framework for self-driving vehicles. Tesla stock was up 7.9% in premarket trading on Monday.
- Nvidia Corp. NVDA shares fell over 2% in premarket trading after reports said that its Blackwell AI chips are facing overheating issues.
- Super Micro Computer Inc. SMCI shares were up over 12% in premarket trading after reports suggested that the company is looking to submit a plan to be in compliance once again with the listing requirements to trade on the Nasdaq.
- Warner Bros. Discovery Inc. WBD shares surged over 1% after the company reached an agreement with the National Basketball Association (NBA) over TV rights.
- T-Mobile US Inc. TMUS shares will also be watched closely after the company was hit by Chinese hackers.
- Investors are awaiting earnings results from Trip.com Group Limited TCOM, Brady Corporation BRC, and AECOM ACM today.
Commodities, Bonds And Global Equity Markets:
Crude oil futures rose in the early New York session, gaining 0.78% to hover around $67.44.
The 10-year Treasury note yield continued to surge, rising to 4.465%.
Major Asian markets ended mixed on Monday, with Japan’s Nikkei 225 falling the most. A similar sentiment was also visible in European markets, which demonstrated tentativeness in early trading.
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© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Tesla lifts Nasdaq futures; bitcoin tops $90,000: Markets wrap
(Bloomberg) — US stock futures edged higher as traders awaited fresh pointers on growth and the path of interest rates. Gold advanced and Bitcoin moved past the $90,000 mark.
Most Read from Bloomberg
S&P 500 contracts indicated small gains at the open, while Nasdaq 100 futures added 0.4% as Tesla Inc (TSLA). shares jumped in premarket trading on speculation Donald Trump’s team will ease self-driving car rules. Gold rose more than 1% after Goldman Sachs Group Inc. analysts predicted the precious metal would hit a record by the end of next year. Bitcoin recovered from its biggest two-day retreat since the US vote.
Trump’s pick for Treasury secretary is in focus this week along with Nvidia Corp. earnings on Wednesday that are set to test the sustainability of AI-led stock gains. While the S&P 500 has given up more than half its rally since Trump’s election win, Morgan Stanley’s Mike Wilson is predicting gains will resume over the longer term.
“It should be a quieter week as the recent relentless wave of US macro and political news flow in theory slows down,” said Jim Reid, Deutsche Bank’s global head of macro and thematic research. “The main story on this front being on potential political appointments for the new Trump administration with Treasury secretary the one creating most interest.”
Morgan Stanley’s Wilson, once considered a prominent bear on Wall Street, sees the S&P 500 ending next year up around 11% from Friday’s close amid improving economic growth and further Fed interest-rate cuts. Goldman Sachs analysts, meanwhile, said gold will reach a record $3,000 an ounce by December 2025 due to central-bank buying and US interest rate cuts.
Bitcoin fell almost 3% over Saturday and Sunday before rising back to $92,000 on Monday morning. Trump has made various pro-crypto pledges, but there are open questions about the timetable for implementation and whether all are feasible — such as setting up a US Bitcoin stockpile.
Inflation, China
In Europe, the Stoxx 600 was down 0.2% amid continued worries about potential US tariffs under the new administration and weakness in China. Eurozone and UK inflation readings due on Tuesday and Wednesday, respectively, will help investors gauge the outlook for Bank of England and European Central Bank policy. A swathe of officials from the respective institutions are also due to speak.
The Bloomberg dollar index was largely steady after reaching a two-year high last week. The Japanese yen weakened as much as 0.5% to 155.14 against the greenback after Bank of Japan Governor Kazuo Ueda avoided giving a clear hint that he will raise interest rates at a December meeting.
A big Wall Street winner from Trump's bitcoin bump: BlackRock
BlackRock CEO Larry Fink was once a “proud skeptic” of bitcoin, but now his money management giant is emerging as one of the biggest beneficiaries of a post-election surge in enthusiasm for the world’s largest cryptocurrency.
BlackRock’s spot bitcoin exchange-traded fund (IBIT) has swelled by $13 billion since Donald Trump’s win on Nov. 5, according to Yahoo Finance data, pushing iShares Bitcoin Trust past $40 billion in assets just 10 months following its launch.
That feat places IBIT among the top 1% of biggest ETFs in record time, according to Bloomberg Intelligence analyst Eric Balchunas.
“We had pretty optimistic projections, but, you know, I don’t think anyone’s ever going to put down as their base or even, maybe, their bull case that year one is going to rewrite the record book on inflows into the ETF category,” Robbie Mitchnick, BlackRock’s head of digital assets, said last week on the Unchained podcast.
Plenty of other companies are also benefitting from the new boom as investors bet that pro-crypto legislation could be possible in Washington, D.C., under a new Trump administration and a GOP-controlled Congress.
The stock of Coinbase (COIN), the biggest US cryptocurrency exchange, is up 58% since the election. The stock of MicroStrategy (MSTR), a software company that became the largest corporate bitcoin holder, is up 50%.
The record inflows to BlackRock illustrate how crypto continues to move into the investing mainstream as it gets embraced by some of the biggest names on Wall Street — even some who were once its biggest critics.
Fink, who runs the world’s biggest money manager, falls into that category.
“I was a proud skeptic, and I studied it, learned about it, and I came away saying, okay, you know, my opinion [for] five years was wrong,” Fink said earlier this year while discussing his previous views with CNBC.
Perhaps the best example of that shift came in June 2023 when BlackRock filed with the Securities and Exchange Commission to launch a spot bitcoin ETF. That was back when the crypto and asset management industries had little evidence such a product would be approved by SEC chair Gary Gensler.
Yet it and 10 other money managers got the green light in January, followed by a listing on Jan. 12.
“BlackRock always seems to be in the right place,” Stephen Biggar, an analyst with Argus Research who covers the asset manager, told Yahoo Finance.
Its embrace of crypto (it also launched a smaller spot ether ETF in late July) coincided with an election year where pro–crypto Congressional candidates received millions in industry donations and Trump as a candidate made a number of promises to the industry.
Morning Bid: Bruised Wall Street keeps wary eye on Nvidia
A look at the day ahead in U.S. and global markets from Mike Dolan
Wall Street feels a little bruised after its worst week in 10 spoiled the post-election party, with home truths on interest rates and earnings seeping back in along with all the uncertainty on what a new administration will actually do come January.
Stocks were side-swiped on Friday after a week of irksome inflation readings, hot retail updates and Federal Reserve boss Jerome Powell’s equivocation on future easing.
There was also trepidation, however, ahead of chip giant Nvidia latest earnings report on Wednesday – as the world’s biggest company by market value and artificial intelligence bellwether faces another test of the near 800% stock boom over the past year.
The $3.5 trillion company is expected to post net income of $18.4 billion as revenue jumped over 80% to $33 billion, according to LSEG data. Nvidia’s huge earnings beats over the past year, however, are inevitably becoming more modest.
With reasonable concerns about the chances of a global trade war rumbling in the background, Nvidia’s shares took a 2% hit early on Monday after weekend reports that its new Blackwell AI chips, which have already faced delays, encountered problems with accompanying servers which overheat.
Yet, stock index futures put on a braver face ahead of today’s open and tried to claw back some of last week’s swoon – which chopped almost 50% off the S&P500’s post-election rally.
The broader earnings season has comfortably beaten estimates, with aggregate annual profit growth coming in close to 9% – compared to the 5.3% forecast at the start of October.
Next year’s growth estimates are being pared back, however, with full-year S&P500 profit growth forecasts dropping about one percentage point to 14% over the past two weeks.
Beyond stocks, the restive Treasury market steadied first thing on Monday, with 10-year yields remaining below 4.5%.
Futures pricing for another Fed rate cut next month shows about a 60% chance of further easing in December and 75 basis points of cuts are now priced to the end of next year.
Despite controversial cabinet picks to date, President-elect Donald Trump still has not proposed names for the top economic posts at the Treasury or Commerce departments or the new Trade Representative.
Trump added former Fed Governor Kevin Warsh and billionaire Marc Rowan to the list of candidates to become his Treasury secretary, the New York Times and Wall Street Journal reported on Sunday.
A former investment banker, Warsh served on the Fed Board from 2006 to 2011 and was seen as both a fiscal hawk and a proponent of higher savings rates. Rowan co-founded investment manager Apollo Global Management and became its CEO in 2021.
Smart Glass Market Projected to Hit USD 18.3 billion by 2031, with a 14.5% CAGR | Exclusive Report by Transparency Market Research, Inc.
Wilmington, Delaware, United States, Transparency Market Research Inc. -, Nov. 18, 2024 (GLOBE NEWSWIRE) — The global smart glass market (스마트 유리 시장) is estimated to flourish at a CAGR of 14.5% from 2021 to 2031. Transparency Market Research projects that the overall sales revenue for smart glass is estimated to reach US$ 18.3 billion by the end of 2031. Post-pandemic, a heightened focus on health and hygiene is influencing the smart glass market. Antimicrobial coatings and touchless controls are becoming crucial, especially in public spaces.
Smart glass finds unconventional applications in the retail sector, enhancing customer experience with interactive displays and dynamic advertising. Transparency control in storefronts creates engaging, customizable retail environments. The integration of smart glass with renewable energy sources is gaining momentum. Photovoltaic smart glass systems harness solar energy while providing shading, contributing to sustainable energy practices in buildings.
Beyond automotive applications, smart glass is increasingly utilized in transportation infrastructure. Intelligent glass in railways and airports enhances passenger comfort, with tinting options and information displays improving the travel experience. The rise of smart cities drives the adoption of smart glass in urban planning. Energy-efficient smart glass in public buildings, street furniture, and transportation hubs align with the sustainability goals of smart city initiatives.
Download Sample PDF of the Report: https://www.transparencymarketresearch.com/sample/sample.php?flag=S&rep_id=1026
Smart Glass Market: Competitive Landscape
The smart glass market boasts a competitive landscape driven by key players innovating in dynamic glazing technologies. Companies like AGC Inc., Saint-Gobain S.A., and Research Frontiers Inc. lead with a diverse range of smart glass solutions for automotive, architectural, and consumer electronics applications.
Intense research and development activities fuel technological advancements, while strategic partnerships and acquisitions enhance market presence.
Emerging players contribute to the competition, introducing niche solutions. As demand grows for energy-efficient and visually dynamic glass solutions, the smart glass market remains dynamic, fostering innovation and addressing evolving consumer and industry needs. Some prominent manufacturers are as follows:
- DuPont
- ASAHI GLASS CO. LTD.
- Saint-Gobain S.A.
- Polytronix Inc.
- ChromoGenics AB
- Smartglass International Limited
- Innovative Glass Corporation
- GUARDIAN INDUSTRIES CORP
- Research Frontiers
- iGlass
Key Findings of the Market Report
- Electrochromic technology leads the smart glass market, offering dynamic tinting and energy-efficient solutions for diverse applications like construction and automotive.
- Architectural end-use segment leads the smart glass market, driven by increasing demand for energy-efficient and visually dynamic building solutions.
- North America leads the smart glass market, driven by robust adoption in sustainable architecture and advancements in automotive applications.
Smart Glass Market Growth Drivers & Trends
- Growing demand for energy-efficient buildings boosts smart glass adoption.
- Integration of smart glass in vehicles enhances user experience and safety, driving market growth.
- Ongoing advancements in smart glass technologies, such as electrochromic and thermochromic systems, propel market expansion.
- Rising awareness of smart glass benefits, including energy savings and enhanced comfort, contributes to market growth.
- Supportive government regulations and incentives for energy-efficient technologies foster the adoption of smart glass in construction and automotive sectors.
Unlock Growth Potential in Your Industry! Download PDF Brochure: https://www.transparencymarketresearch.com/sample/sample.php?flag=S&rep_id=1026
Global Smart Glass Market: Regional Profile
- In North America, a mature market witnesses a surge in smart glass adoption, driven by sustainable building trends and automotive advancements.
- Europe embraces smart glass solutions for energy efficiency, with regulatory support accelerating market growth.
- The Asia Pacific stands as a hotbed for innovation, particularly in construction and automotive applications. Rapid urbanization and technological evolution in countries like China and Japan contribute to robust market expansion.
Product Portfolio
- Asahi Glass Co. Ltd. pioneers cutting-edge glass solutions, offering a diverse product portfolio ranging from architectural and automotive glass to electronics and displays. With a commitment to innovation, they shape industries globally, delivering high-performance materials that redefine possibilities.
- Saint-Gobain S.A. leads in sustainable construction materials, providing innovative solutions in insulation, gypsum, and performance plastics. Their diverse product portfolio caters to the evolving needs of the construction industry, ensuring durability, energy efficiency, and environmental responsibility.
- Polytronix, Inc. specializes in cutting-edge liquid crystal technology, offering a comprehensive product portfolio including smart glass solutions for privacy, projection, and energy efficiency. Their innovative applications redefine the possibilities of glass, enhancing functionality and aesthetics in various industries.
Smart Glass Market: Key Segments
By Technology
- Electrochromic
- Thermochromic
- Photochromic
- Liquid Crystal
- Suspended Particle Device
By End Use
- Architectural
- Consumer Electronics
- Transportation
- Solar Power Generation
By Region
- North America
- Europe
- Asia Pacific
- Middle East & Africa
- Latin America
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More Trending Report by Transparency Market Research:
Microturbines Market (سوق التوربينات الدقيقة) – The global microturbines market is projected to grow at a CAGR of 8.6% from 2022 to 2031
Deoiler Chemicals Market (脱油剤化学品市場) – The global deoiler chemicals market stood at US$ 18.0 billion in 2022 and the global market is projected to reach US$ 27.3 billion by 2031. The global industry is anticipated to expand at a CAGR of 4.8% between 2023 and 2031.
About Transparency Market Research
Transparency Market Research, a global market research company registered at Wilmington, Delaware, United States, provides custom research and consulting services. Our exclusive blend of quantitative forecasting and trends analysis provides forward-looking insights for thousands of decision makers. Our experienced team of Analysts, Researchers, and Consultants use proprietary data sources and various tools & techniques to gather and analyses information.
Our data repository is continuously updated and revised by a team of research experts, so that it always reflects the latest trends and information. With a broad research and analysis capability, Transparency Market Research employs rigorous primary and secondary research techniques in developing distinctive data sets and research material for business reports.
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© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Niu Q3 Earnings: Scooter Volume Up, But Price Drops And Margins Tighten, Strong Q4 Outlook And More
Chinese electric scooter company Niu Technologies NIU reported a fiscal third-quarter 2024 revenue growth of 10.5% to 1.02 billion Chinese yuan ($145.90 million), mainly due to an increase in sales volume of 17.5%, partially offset by a decrease in revenues per e-scooter of 6.0%.
The company reported loss per ADS of $(0.07). Adjusted net loss was (34.25) million Chinese yuan, compared to (69.96) million Chinese yuan loss a year ago.
Also Read: Disney’s Streaming Profits And Park Rebound Lead The Way: Analyst
The number of e-scooters sold increased by 17.5% Y/Y to 312,405, with sales in China growing by 12.4%. International e-scooter sales climbed 50.3% to 53,311 units. The number of franchised stores in China was 3,345 as of September 30, 2024.
The quarterly gross margin declined 760 basis points Y/Y to 13.8%, mainly due to a higher proportion of kick-scooter sales in international markets, changes in the product mix of e-scooters, and increased sales incentives to franchisees in the Chinese market.
The operating loss for the quarter was (58.49) million Chinese yuan versus a loss of (89.52) million Chinese yuan a year ago. The company held 1.05 billion Chinese yuan in cash and equivalents as of September 30, 2024.
CEO Yan Li noted that third-quarter sales growth fell short of targets due to recent policy changes in China affecting sales timing. However, retail demand remains robust, and the upcoming product lineup aligns with the new regulations, positioning the company well to manage these shifts. The launch of the NX Hyper electric motorcycle represents a key milestone, emphasizing a focus on performance and innovation.
Li added that the company has maintained a strong pace of new store openings this year, creating a solid base for future growth. At the recent Milan EICMA event, they introduced a series of new scooters, highlighting advanced design and innovative technology. These models will soon launch in the EU and the US.
Li expressed confidence in navigating market changes and delivering strong performance.
Outlook: Niu expects fourth-quarter revenues of 622 million Chinese yuan – 718 million Chinese yuan, representing a 30%-50% Y/Y increase.
Niu Technologies stock plunged 7% year-to-date.
Price Action: NIU shares closed lower by 0.50% at $1.99 on Friday.
Also Read:
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Asia And Europe Markets Mostly Lower, Dollar's Uptrend Continues – Global Markets Today While US Slept
On Friday, November 15, U.S. markets closed lower, with the S&P 500 and Nasdaq recording their steepest losses in two weeks. The decline was fueled by worries over delayed interest rate cuts, reactions to economic data, and Trump’s cabinet picks, including Robert F. Kennedy Jr., raising vaccine policy concerns.
Related: European And U.S. Vaccine Stocks Are Under Pressure – Here’s Why
According to economic data, U.S. export prices rose by 0.8% in October, while import prices increased by 0.3%. Retail sales grew 0.4% month-over-month, exceeding market expectations of 0.3% but lower than September’s revised 0.8% gain.
Most S&P 500 sectors fell, led by losses in tech, communication services, and healthcare, while utilities and financials gained, defying the broader market trend.
The Dow Jones Industrial Average was down 0.47% and closed at 43,750.86, the S&P 500 declined 0.50% to 5,949.17, and the Nasdaq Composite slid 0.64% to finish at 19,107.65.
Asia Markets Today
- On Monday, Japan’s Nikkei 225 declined 1.05% and ended the session at 38,232.50, led by losses in the Real Estate, Shipbuilding, and Financial Services sectors.
- Australia’s S&P/ASX 200 rose 0.18% and ended the day at 8,300.20, led by gains in the Consumer Staples, Utilities and Gold sectors.
- India’s Nifty 50 closed 0.50% lower at 23,462.70, and Nifty 500 down 0.28% at 21,901.10, led by losses in the Technology, Oil & Gas, and Fast Moving Consumer Goods sectors.
- China’s Shanghai Composite declined 0.21% to close at 3,323.85, and the Shenzhen CSI 300 fell 0.46%, finishing the day at 3,950.38.
- Hong Kong’s Hang Seng gained 0.77% and closed the session at 19,576.61.
Eurozone at 05:30 AM ET
- The European STOXX 50 index was down 0.27%.
- Germany’s DAX slid 0.08%.
- France’s CAC fell 0.00%.
- FTSE 100 index traded higher by 0.30%
Commodities at 05:30 AM ET
- Crude Oil WTI was trading higher by 0.70% at $67.39/bbl, and Brent was up 0.73% at $71.56/bbl.
- Oil prices rose amid the escalating Russia-Ukraine conflict. However, market gains were tempered by weak demand in China and a global oil surplus forecast. U.S. support for Ukrainian strikes against Russia increased geopolitical risks.
- Natural Gas rose 2.34% to $2.888.
- Gold was trading higher by 0.99% at $2,595.80, Silver gained 1.27% to $30.820, and Copper rose 0.46% to $4.0830.
- Gold prices rose, supported by a slowing dollar rally. Investors await Federal Reserve comments amid strong U.S. economic data reducing expectations for December rate cuts.
U.S. Futures at 05:30 AM ET
Dow futures declined 0.22%, S&P 500 futures up 0.02%, and Nasdaq 100 futures gained 0.35%.
Forex at 05:30 AM ET
- The U.S. dollar index gained 0.02% to 106.70, the USD/JPY rose 0.41% to 154.97, and the USD/AUD rose 0.08% to 1.5484.
- The dollar strengthened against the yen as Bank of Japan Governor Kazuo Ueda signaled potential future rate hikes without confirming timing.
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Seeking up to 14% Dividend Yield? Analysts Suggest 2 Dividend Stocks to Buy
The stock market closed last week on a negative note, weighed down by investor speculation that the Federal Reserve might scale back its pace of policy easing.
Federal Reserve Chair Jerome Powell, in remarks on Thursday, emphasized there was no immediate rush to lower interest rates, citing positive economic indicators. This message was reinforced on Friday by a stronger-than-expected October retail sales report.
Meanwhile, enthusiasm for President-elect Donald Trump’s pro-business agenda is fading, with growing concerns about the potential costs and inflationary risks tied to his fiscal policies.
In this environment, investors will turn toward defensive shares – and that frequently means dividend stocks. These investments offer consistent income, making them a reliable choice during periods of market uncertainty.
So, if Friday’s downbeat day has you seeking out dividends, Wall Street analysts have flagged two dividend stocks to buy, including one with a 14% yield. Let’s take a closer look, with insights drawn from the TipRanks database.
AFC Gamma (AFCG)
We’ll start with a real estate investment trust, a REIT, that operates with a bit of a twist. The company, AFC Gamma, works with the cannabis industry, where it acts as a finance provider, making available commercial real estate loans, as well as loan underwriting and other financial services. The company makes direct loans and bridge loans in the range of $10 million to $100 million – an important source of finance in an industry that is growing rapidly but is also dealing with a complex legal structure. AFC Gamma estimates that the cannabis industry has an addressable market of approximately $30 billion.
The company is based in West Palm Beach, Florida, one of the states with a legal cannabis framework, and its customer base is state-licensed cannabis operators across the country. The cannabis industry has a high overhead, as the grow facilities require a combination of large floor space and heavy use of both water and electric utilities. Access to traditional banking capital can be limited, because cannabis is illegal at the Federal level, and the states present a patchwork of different legal frameworks. All in all, AFC Gamma’s target niche is a bright opportunity for a finance company that can operate outside the banking networks – and the company’s status as the largest REIT in the cannabis industry makes it attractive to dividend investors.