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Traders work on the floor of the New York Stock Exchange during afternoon trading on July 18, 2023 in New York City.

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This report is from today’s CNBC Daily Open, our new, international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Like what you see? You can subscribe here.

What you need to know today

More mixed markets
U.S. stocks
closed Friday mixed. The Nasdaq Composite was the only major index to fall. Asia-Pacific markets traded mixed Monday as well. Hong Kong’s Hang Seng Index lost 1.4% to start the week, but Japan’s Nikkei 225 gained 1.22% on the back of the country’s seventh straight month of business activity expansion.

Booming U.S. economy?
Morgan Stanley has made a “sizeable upward revision” to its estimates for the U.S. economy. The bank expects GDP to grow 1.9% for the first half of this year, almost four times the original forecast of 0.5%. For the second half, the bank thinks GDP will grow 1.3%, compared with 0.6%. Joe Biden’s Infrastructure Investment and Jobs Act is “driving a boom in large-scale infrastructure,” wrote Ellen Zentner, chief U.S. economist for Morgan Stanley.

Demand for oil
Oil prices might spike in the second half of the year as supply fails to keep up with demand, Secretary General of the International Energy Forum Joseph McMonigle told CNBC. “India and China combined will make up 2 million barrels a day of demand pick-up in the second half of this year,” he said. However, McMonigle thinks OPEC+ will respond to a “big supply-imbalance.”

What Foxconn’s failure says
Foxconn’s recent decision to pull out of a joint venture to establish semiconductor manufacturing in India highlights how difficult it is for new players to enter the industry. High barriers to entry like lack of specialized labor, reliance on third-party technology and intellectual property mean TSMC’s 59% market share is likely to remain unchallenged for now.

[PRO] Fully packed week
This week’s packed full of economic data releases and earnings reports, and will see the Federal Reserve meet to decide on the path of U.S. interest rates. CNBC Pro’s Sarah Min breaks down what analysts are expecting and how they are positioning their portfolios to deal with the heavy week.

The bottom line

Let’s talk about the Dow Jones Industrial Average and why it did better than the S&P 500 and the Nasdaq Composite last week.

First, the numbers. The S&P and the Dow were essentially flat, while the Nasdaq Composite lost 0.22% Friday. (Technically, the Dow squeezed out a 0.01% gain to give it a 10-day winning streak, but that figure’s so negligible I don’t think it’s worth making a big fuss over it.)

On a weekly basis, the S&P advanced 0.79%, the Nasdaq fell 0.57% — but the Dow gained an impressive 2.08%.

A large part of the Dow’s showing was because of how the index is composed and calculated. It includes just 30 stocks, ostensibly chosen to represent the broader U.S. economy. To give an example, Goldman Sachs and JPMorgan Chase represent banks; Apple and Microsoft show up for technology; Nike and Procter & Gamble stand in for consumer goods.

The Dow’s other key difference from the S&P and Nasdaq is that it is price-weighted, that is, the more expensive the stock, the bigger its influence on the index. Conversely, the other two major indexes are capitalization-weighted, meaning that the higher the total value of the company’s total shares, the more sway it has in moving the index.

Now, let’s look at Friday’s stock movements.

Nvidia slumped 2.66%. It has a market capitalization of over $1 trillion. Unsurprising, then, that it had the biggest negative impact on both the S&P and Nasdaq. The Dow? The index doesn’t even include Nvidia, so it was spared.

The Dow, on the other hand, benefited from gains in firms like UnitedHealth and Goldman Sachs. Their stock prices are high — around $500 and $350 per share, respectively — but their total market capitalizations are comparatively low. Those gains wouldn’t register much on the S&P and Nasdaq, but boosted the Dow.

What does this all mean? Honestly speaking: Not much. According to CNBC’s calculations, over the past 15 years, the Dow and the S&P have moved in the same direction 94% of the time. So while it’s true the major indexes have diverged as of late — this week aside, the Nasdaq is leading by a 34% increase for the year, the S&P 18% and the Dow a meagre 6% — in the long run, it shouldn’t really matter what index you’re tracking. The lesson here? Don’t take short-term blips as long-term trends.

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Workhorse electric delivery vans arrive in Canada this spring

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Workhorse electric delivery vans arrive in Canada this spring

Following approval from Transport Canada, EV startup Workhorse will be bringing the W56 and W750 model electric delivery vans to commercial truck dealers in Canada as early as this spring.

Workhorse first showed its W56 medium-duty electric truck at Indiana’s Work Truck Week in 2023, and has sold the trucks to logistics and delivery companies like FedEx and Pride Group – which ordered more than six thousand of the electric vans in 2021, and continues to expand its fleet.

“This is a major step forward for Workhorse,” says Josh Anderson, Workhorse’s chief technology officer in a press statement. “Pre-clearance from Transport Canada opens up a large new market for our products throughout Canada, including with fleets that operate across borders in North America.”

As part of the approval process, Workhorse completed its registration as a foreign manufacturer under Transport Canada’s Appendix G clearance program. Transport Canada confirmed the vans’ compliance with Canadian Motor Vehicle Safety Standards (CMVSS) for both vehicles – but it remains to be seen if and how the latest tariff-driven trade war between the Trump Administration’s US and Canada will impact Workhorse’s plans to expand throughout North America.

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Despite that uncertainty, Workhorse execs remain upbeat. “We’re excited that our electric step vans can now reach Canadian roads and highways, providing reliable, zero-emission solutions that customers can depend on,” added Anderson.

Canadian pricing has yet to be announced.

Electrek’s Take

FedEx Places First Order for 15 Workhorse W56 Step Vans to Grow Zero-Tailpipe Emission Fleet
FedEx electric delivery vehicle; via Workhorse.

There’s no other way to say it: the Trump/Musk co-presidency is disrupting a lot of companies’ plans – and that’s especially true across North American borders. But in all this chaos and turmoil there undoubtedly lies opportunity, and it will be interesting to see who ends up on top.

SOURCE | IMAGES: Workhorse, via Electric Autonomy Canada.

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Liebherr developing giant, 140-ton Segway-style autonomous haulers [video]

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Liebherr developing giant, 140-ton Segway-style autonomous haulers [video]

The new Liebherr S1 Vision 140-ton hauler is unlike any heavy haul truck currently on the market – primarily because the giant, self-propelled, single-axle autonomous bucket doesn’t look anything like any truck you’ve ever seen.

Liebherr says its latest heavy equipment concept was born from a desire to rethink truck design with a focus only on core functions. The resulting S1 Vision is primarily just a single axle with two powerful electric motors sending power to a pair of massive airless tires designed carry loads up to 131 tonnes (just over 140 tons).

The design enables rapid maintenance, as important components easily accessible for quick servicing. Wear parts can be replaced efficiently, and the electric drive significantly reduces maintenance work. This helps to minimise downtimes and increases operational efficiency.

LIEBHERR

Because of its versatility, durability, and ability to perform zero-turn maneuvers that other equipment simply can’t, the Liebherr S1 Vision can be adapted for various applications, including earthmoving, mining, and even agriculture. There’s also a nonzero chance of this technology finding applications supporting other on-site equipment through charging or fuel delivery.

The S1 accomplishes that trick safely with the help of an automatic load leveling system that ensures maximum stability, even on bumpy or rough terrain. The company says this technology significantly reduces the risk of tipping while providing smooth and secure operation across various environments.

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Liebherr will show the S1 Vision at this year’s bauma equipment exhibition in Munich, Germany. The design has already been nominated for the bauma Innovation Award in the Mechanical Engineering category – and my money’s on it winning.

Electrek’s Take

This is such goofy, stupid fun that if it was wheelbarrow-sized I’d have three of them. I can’t imagine the insanity of watching one of these things roll across a job site with 100 tons of granite in the bucket – and will have nightmares about the kind of damage it could do if it flipped out like a poorly made Chinese hoverboard clone whipping a toddler across a living room … which, in fairness, would probably get a billion views on Instagram or TikTok or whatever.

I can’t wait.

SOURCE | IMAGES: Liebherr.

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Meet the newest EV from Hyundai – new HX19e electric excavator

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Meet the newest EV from Hyundai – new HX19e electric excavator

The HD arm of Hyundai has just released the first official images of the new, battery-electric HX19e mini excavator – the first ever production electric excavator from the global South Korean manufacturer.

The HX19e will be the first all-electric asset to enter series production at Hyundai Construction Equipment, with manufacturing set to begin this April.

The new HX19e will be offered with either a 32 kWh or 40 kWh li-ion battery pack – which, according to Hyundai, is nearly double the capacity offered by its nearest competitor (pretty sure that’s not correct –Ed.). The 40kWh battery allows for up to 6 hours and 40 minutes of continuous operation between charges, with a break time top-up on delivering full shift usability.

Those batteries send power to a 13 kW (17.5 hp) electric motor that drives an open-center hydraulic system. Hyundai claims the system delivers job site performance that is at least equal to, if not better than, that of its diesel-powered HX19A mini excavator.

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To that end, the Hyundai XH19e offers the same 16 kN bucket breakout force and a slightly higher 9.4 kN (just over 2100 lb-ft) dipper arm breakout force. The maximum digging depth is 7.6 feet, and the maximum digging reach is 12.9 feet. Hyundai will offer the new electric excavator with just four selectable options:

  • enclosed cab vs. open canopy
  • 32 or 40 kWh battery capacity

All HX19es will ship with a high standard specification that includes safety valves on the main boom, dipper arm, and dozer blade hydraulic cylinders, as well as two-way auxiliary hydraulic piping allows the machine to be used with a range of commercially available implements. The hydraulics needed to operate a quick coupler, LED booms lights, rotating beacons, an MP3 radio with USB connectivity, and an operator’s seat with mechanical suspension are also standard.

Like its counterparts at Volvo CE, the new Hyundai excavator uses automotive-style charging ports to take advantage of existing infrastructure at fleet depots and public charging stations. More detailed specifications, dimensions, and pricing should be announced by bauma.

Electrek’s Take

HX19e electric mini excavator; via Hyundai Construction Equipment.

The ability to operate indoors, underground, or in environments like zoos and hospitals were keeping noise levels down is of critical importance to the success of an operation makes electric equipment assets like these coming from Hyundai a must-have for fleet operators and construction crews that hope to remain competitive in the face of ever-increasing noise regulations. The fact that these are cleaner, safer, and cheaper to operate is just icing on that cake.

SOURCE | IMAGES: HD Hyundai; via Construction Index, Equipment World.

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