Solar and Wind Stocks Decline; Disney Upgrade; Juniper DOJ Settlement

On this episode of Stock Movers:
- NextEra Energy (NEE) is one of many wind and solar stocks moving to the downside this morning amid Senate deliberations over the US tax bill. The new version of the bill adjusts key provisions on the SALT deduction, Medicaid, and clean energy, and includes compromises among warring factions of the Senate GOP.
- Tesla (TSLA) shares are lower, following the trend of wind and solar stocks and is the only downside mover of the Mag 7 in the premarket. CEO and founder Elon Musk has spoken out against the bill, saying the bill would destroy millions of US jobs and give "handouts to industries of the past while severely damaging industries of the future." he also called cuts to electric vehicle and clean energy credits would be "incredibly destructive" to the country.
- Disney (DIS) is rising in early trading after it was upgraded by Jeffries to a buy from a hold. The broker now sees limited risk for a slowdown for its key parks division in 2H 2025, more positive upside to cruise division in 2026, as well as continued margin expansion for its direct-to-consumer offerings.
- Juniper Networks (JNPR) is up in the premarket after the Justice Department settled a lawsuit challenging Hewlett Packard Enterprise's $13 billion takeover of Juniper, requiring the combined company to sell HPE's Instant On wireless networking business and auction off a license to Juniper's competing Mist business. The deal would have consolidated the sector from three major players to two, controlling 70% of the market, but the settlement preserves competition in the global networking market.

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Episode Transcript

Speaker 1 (00:02):
Bloomberg Audio Studios, podcasts, radio news, The.

Speaker 2 (00:08):
Stock Movers podcast, your roundup of companies making moves in
the stock market, harnessing the power of Bloomberg Data.

Speaker 3 (00:17):
Let's take a look at some stocks on the move today.
I'm Nathan Hager, joined by Bloomberg's Valerie Tytel, keeping an
eye on stocks that could be affected by the debate
happening in Washington, DC over the tax and Spending cut bill.
There's been a lot of talk of rolling back some
clean energy tax credits, and that's affecting some stocks in
the space this morning.

Speaker 2 (00:37):
Good morning, Valve, Hey, good morning Nathan.

Speaker 1 (00:39):
You on the backfoot. We do have a particularly wind
in solar stocks on the move to the downside this morning,
aes N Phase and next Era Energy. All three of
those are wind and solar green energy stocks down around
three percent in the pre market. This comes as the
latest version of the US Senate's spending bill proposes phasing

(00:59):
out tax credits for wind and sellar projects more aggressively.
The new tweak would require projects to be completed by
the end of twenty twenty seven, while the initial version
simply required projects to start construction by the end of
this year to get the full incentives. Now it is
having an impact on US clean energy stocks, also having
an impact in Europe. The biggest loser on the stock

(01:21):
six hundred today was vestas Win in Copenhagen, down round
five percent off the back of this as well.

Speaker 3 (01:27):
And we've also heard Elon Musk sort of coming out
against this potential rollback not just to the clean energy
credits but ev credits as well. Is that having an
impact on his company this morning?

Speaker 1 (01:39):
Tesla is down one point two percent this morning. It's
the only mag seven stock to be in the red
so far in the pre market. This does come as
the Senate tax bill would bring a quicker end to
the consumer tax credit of seven five hundred dollars for
electric vehicles. Would terminate the tax credit after September thirtieth.
That's only three more months left for the consumer tax

(02:00):
credit to be in play. The Senate bill was panned
by Musk as being incredibly destructive to the US. He
also said it would destroy millions of jobs in the
US and give handouts to industries of the past while
severely damaging industries of the future. So it's Tesla to
the downside this morning, down one point two percent, the
only mag seven stock in the red.

Speaker 3 (02:20):
Now moving to the upside. It looks like well away
from the EV and clean energy space. One of the
biggest entertainment companies in the world.

Speaker 1 (02:28):
Yeah, Disney, is rising around two percent so far. This morning.
They were upgraded to a buy from a hold at Jeffreys,
with a new price target of one hundred and forty
four dollars a share and plying around a twenty percent
rise from Friday's close. The broker now sees limited risk
for a slowdown for Disney's key parks division in the
second half of twenty five. Also sees continued margin expansion

(02:51):
for its direct to consumer offering, so that upgrade is
giving Disney a boost, up one point nine percent so
far in pre market trade.

Speaker 3 (02:58):
J even bigger jumps for to names in the tech space.

Speaker 1 (03:03):
This is all on the back of a lawsuit, but
we're seeing Juniper and HP Enterprises rise in the pre market.
Juniper's up around nine percent. HP is up around seven
This comes as the DOJ settled a lawsuit to clear
a key hurdle for this merger that's been more in
a year in the works. The Justice Department settled a
lawsuit that challenged HP's thirteen billion takeover of Juniper Networks,

(03:27):
where previously argued it cornered the market for the networking equipment.
Now the settlement comes less than two weeks before the
trial was set to start, so I think this does
surprise the market in terms of the upside for this
transaction to close. The settlement does require the combined company
to divest HP's networking business and license the sort code

(03:50):
for AI software used in Juniper's products, so that settlement
will clear the way. It seems like for the transaction
to close sometime this year, and both those stocks are
rising on the back.

Speaker 2 (04:01):
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