Forbes Daily: Rate Cut Drives Delayed Rally For Tech Stocks And Beyond
Good morning,
Secretary of Energy Jennifer Granholm faces a tall but critical task : distribute more than $110 billion for greener, less carbon-intense forms of energy—and do it quickly.
"Our motto is deploy, deploy, deploy," Granholm told Forbes. "That has not historically been the case." She's aiming to help meet the Biden Administration's goal of slashing carbon dioxide and other greenhouse gas emissions to net zero by 2050. If she gets it right, it will affect Americans for decades, creating tens of thousands of jobs.
Still, some are concerned the agency isn't moving quickly enough to tackle the climate crisis. "It needs more freedom to operate and a willingness to take bigger risks," says Gaurav Sant, director of UCLA's Institute for Carbon Management.
FIRST UPStocks soared Thursday as markets digested the Federal Reserve 's first rate cut in over four years, following a choppy Wednesday trading session. The Dow Jones Industrial Average rose 1.3% by close, the S&P 500 rose about 1.7% and the tech-heavy Nasdaq surged roughly 2.5%.
MORE: Massive technology stocks spearheaded the rally , with Apple and Nvidia adding the most market value of any public U.S. firms. But the rally extended into non-tech stocks benefiting from the shift away from a high-rate environment, like construction equipment manufacturer Caterpillar and banks including Citigroup and Goldman Sachs.
TECH + INNOVATION When Elon Musk introduced the Tesla Roadster in 2008, it made electric cars cool, and the company spurred others in the auto industry into accelerating their own EV models. But once the undisputed leader of the electric car industry, Tesla's profits are down four quarters, and China-based BYD now manufactures more electric vehicles.
The U.S. power grid is struggling to keep up with rising electricity demand, and Mary Powell, the CEO of Sunrun and a former electric utility chief, sees the combination of residential solar panels and battery storage as the solution. Her San Francisco-based company hit an industry-first last month by installing solar and battery systems in 1 million U.S. homes.
Massachusetts Institute of Technology professor Yet-Ming Chiang has used esoteric research to launch 10 different companies aimed at replacing current carbon-based technologies with commercially scalable green and low-carbon alternatives. To date, his startups have raised more than $2.5 billion to build batteries, decarbonize cement and find more environmentally friendly ways to mine the critical minerals that are key to electrification.
MONEY + POLITICSA series of highly controversial comments reportedly made by Mark Robinson surfaced Thursday by CNN, though the Republican candidate for governor in North Carolina denies making them. An account associated with Robinson wrote about being a "Black Nazi," disparaged Martin Luther King Jr., and spoke highly of slavery in comments on a pornographic website between 2008 and 2012. Robinson is North Carolina's current lieutenant governor and is backed by former President Donald Trump.
SPORTS + ENTERTAINMENTWhen Disney CEO Bob Iger and his wife Willow Bay secured their controlling stake in the women's soccer team Angel City FC, the $250 million price tag crushed the National Women's Soccer League's record for a sale. Insiders say Iger's value in the owner's box is hard to overstate, as sports marketing exec Sam Yardley told Forbes, "[O]wning an NWSL franchise has gone from, like, 'Hey, can I have my power boat?' to 'Can I have my yacht?'"
TRENDS + EXPLAINERSThe government is one step closer to a shutdown just six weeks before Election Day after the House of Representatives rejected legislation to continue funding the federal government past the October 1 deadline. All but three Democrats opposed the bill, citing a GOP-backed provision that would have mandated proof of citizenship when registering to vote—as former President Donald Trump continues to baselessly claim that non-citizens voting in elections has led to fraudulent votes for Democrats. Still, lawmakers predict Congress will reach an agreement to avoid any electoral consequences.
DAILY COVER STORY Here's How Much Every Living Former President Earned After Leaving The White HouseWhile it looks different for every former president, life after the Oval Office has proven quite lucrative lately, as former commanders-in-chief have capitalized on their stature and fanbase to land high-paying speaking gigs, book contracts and other deals.
Nobody's made quite as much as Donald Trump after serving as president, becoming the first person to make a billion dollars off of politics less than four years after losing reelection and as he makes his third run for the White House.
Forbes broke down the post-presidential wealth for all the living former heads of state, and each of them have found ways to cash in on the world's most powerful office.
Take former President Barack Obama, for example. Obama made about $20 million during his 12 years in Washington D.C. as a senator and president, and he had an estimated net worth of $6 million in 2012. That figure skyrocketed once he left office.
He and his wife, Michelle, sold their memoir rights to Penguin Random House for $65 million in 2017, per the Financial Times. A year later, they founded Higher Ground Productions and signed a four-year deal with Netflix. The pair was also reportedly paid hundreds of thousands to speak at events. Per real estate agents, they own homes in Chicago, Hawaii, D.C. and Martha's Vineyard assessed at a combined $35.5 million.
WHY IT MATTERS "Donald Trump is famous for cashing in after he left office, but he's certainly not the only former president to do so," says Forbes reporter Kyle Khan-Mullins. "This examination of speeches, book deals, media deals and real estate helps underscore that, at least financially, the real rewards of the presidency come after it's over."
How Donald Trump Made Billions From Politics
FACTS + COMMENTSLos Angeles Dodgers star Shohei Ohtani became the first player in MLB history to hit 50 home runs and steal 50 bases in a season during Thursday's game with the Miami Marlins, furthering his case for being considered baseball's greatest player of all time:
Six hits: Number of hits Ohtani had during the game, including three home runs. His previous record for hits in a single game was four
Number of runs batted in, a record for both Ohtani and the Dodgers
Two-way: A successful pitcher as well, Ohtani has focused on hitting this season as he recovers from an elbow injury
STRATEGY + SUCCESSYou don't necessarily need to climb the corporate ladder for a fulfilling career path. If you hate dealing with office politics, are thinking of getting a new job soon or want more flexibility, it's understandable not to want to move up at your current company. And if you feel like you've reached a point where you're happy where you are, then you have nothing else to prove.
Daylight saving time will end, and clocks will fall back, one hour on Sunday, November 3, even as many Americans oppose the practice. Which is one of only two states that doesn't observe daylight saving time?
A. New Mexico
B. Arizona
C. Texas
D. Oklahoma
Check your answer.
Thanks for reading! This edition of Forbes Daily was edited by Sarah Whitmire and Chris Dobstaff.
