Environment

CNBC Daily Open: August’s CPI report isn’t as bad as it seems

Published

2 years ago

September 14, 2023

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A view of a gas station as gas prices are at the highest level from last year in Virginia, on August 16, 2023.

Celal Gunes | Anadolu Agency | Getty Images

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

Biggest monthly jump this year
The U.S. consumer price index for August rose 3.7% from a year ago and a seasonally adjusted 0.6% for the month, mostly in line with the expected 3.6% and 0.6%, respectively. Though expected, it’s still the biggest month-on-month increase in prices this year. Energy prices, which soared on the month, were mostly to blame. Core inflation, which excludes food and energy prices, was up 4.3% on the year and 0.3% on the month.

Markets shrugged
U.S. markets were mixed Wednesday, with the Dow Jones Industrial Average the only major index to fall. The pan-European Stoxx 600 fell 0.32% as European dealmaking sentiment remains cautious, according to a new report from law firm CMS and Mergermarket. Meanwhile, the U.K.’s economy shrank 0.5% month on month in July, more than the 0.2% expected.

An Arm and a leg
Arm is pricing its initial public offering at $51 per share, the top of its expected price range. That values the company at over $54 billion, giving it a price-to-earnings multiple of about 104. By comparison, Apple’s multiple is around 30, Tesla’s is 77 and Nvidia’s is 110 for the previous 12 months. Softbank, Arm’s current towner, will control about 90% of the company’s outstanding shares.

Rebuilding Citi
Citigroup CEO Jane Fraser reorganized the firm, dividing it into five main business lines that report directly to her. Previously, the bank had only two main divisions. The corporate shuffling will include job cuts, though the number is yet to be decided. Shares of Citigroup have declined about 40% since Fraser assumed the top job in March 2021, and trades for the lowest valuation among U.S. big banks.

[PRO] Joining the Tesla party
On Monday, Morgan Stanley published a note asserting Tesla could rally 60%. But that’s nothing compared to the call made by Ron Baron, the billionaire investor who founded Baron Capital in 1982. Baron thinks Tesla could grow to as much as five times its current stock market capitalization — here’s what he has to say about the electric vehicle manufacturer and Elon Musk’s other companies.

The bottom line

At first glance, August’s CPI report seems bad news. The month-over-month jump in prices is the highest in a year. And even core inflation came in hotter than expected. But look more closely and you’ll find things aren’t as terrifying as they seem.

The headline number was pushed up by rising oil prices, which have been steadily increasing in recent weeks, as we’ve talked about. Gasoline prices soared 10.6% in August, the largest contributor to inflation last month, according to the U.S. Bureau of Labor Statistics.

But it’s likely gasoline prices will fall after a month or two, according to Andrew Hunter, deputy chief U.S. economist at Capital Economics. And gasoline prices have actually retreated 3.3% from a year ago, suggesting that they’re still on a downward trend in the long run.

Excluding volatile energy prices, monthly core inflation was up 0.3% against the expected 0.2%. Here, shelter costs were the main culprit for the hotter-than-expected increase. “Housing continues to contribute an outsized share to the inflation measures,” said Lisa Sturtevant, chief economist at Bright MLS.

But, Sturtevant added, “rent growth has slowed considerably and median rents nationally fell year-over-year in August.” That slowdown in prices will show up in future reports, meaning that August’s core CPI numbers is just “a little bump in the road,” as Kayla Bruun, senior economist at Morning Consult, put it.

“It doesn’t mean it’s turning around and going in the other direction,” Bruun said. “Overall, most of the pieces are headed in the right direction.” Indeed, the annual measure of core CPI still dropped from 4.7% in July to 4.3% in August.

Markets took the numbers in their stride. The Dow was the only major index to fall, losing 0.2% as shares of 3M and Caterpillar sank. The S&P 500 added 0.12% and the Nasdaq Composite rose 0.29%, helped by gains in Tesla and Amazon. And traders are still betting the Federal Reserve won’t raise rates next week, according to the CME FedWatch Tool.

Markets can act in irrational ways sometimes. But sometimes, the crowd psychology of markets manifests as collective wisdom.

— CNBC’s Jeff Cox and Greg Iacurci contributed to this report

Environment

Maryland’s largest solar farm is now online on a former coal mine

Published

11 hours ago

December 23, 2025

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Maryland’s largest solar farm is now online on a former coal mine

Maryland largest solar farm — Photo: Competitive Power Ventures

A former coal mine in western Maryland is now generating solar power – and it’s the largest solar farm in the state. Competitive Power Ventures (CPV) has brought Maryland’s largest solar project online in Garrett County, turning reclaimed coal mine land into a source of clean electricity.

CPV Renewable Power, an affiliate of CPV, and investment partner Harrison Street Asset Management have started commercial operations at CPV Backbone Solar, a 160-megawatt solar project in western Maryland. The site sits on a reclaimed, decommissioned coal mine, turning previously disturbed land into a new source of clean power.

Construction of the project was handled by Vanguard Energy Partners, a solar engineering, procurement, and construction firm.

The project comprises approximately 324,000 solar panels and is expected to generate enough electricity to power around 30,000 homes. For Maryland, it adds new in‑state generation while giving former fossil fuel land a second life.

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CPV says that the project aims to demonstrate the role of brownfield redevelopment in the energy transition. The company’s CEO, Sherman Knight, said Backbone Solar shows “how brownfield redevelopment, innovative engineering, and strategic partnerships can meet complex project challenges and deliver new power generation in Maryland.”

Local officials have welcomed the project. Garrett County Board Chairman Paul Edwards said bringing the solar facility to the county helps protect the region’s natural landscape while also creating economic value for local residents.

CPV Backbone Solar also includes a community and environmental investment tied to the project. CPV has committed $100,000 over four years to the Deep Creek Watershed Foundation.

Backbone Solar becomes part of CPV’s growing renewable portfolio, which includes four operating wind and solar projects. The company also says it has a 4.8-gigawatt renewable development pipeline.

A second phase of the Backbone Solar project is already under construction. Once completed, it’s expected to increase the site’s total installed capacity from 160 MW to 175 MW.

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Environment

Trump says U.S. will keep the crude oil and tankers seized near Venezuela

Published

12 hours ago

December 22, 2025

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Trump says U.S. will keep the crude oil and tankers seized near Venezuela

U.S. President Donald Trump makes an announcement about the Navy’s “Golden Fleet” at Mar-a-lago in Palm Beach, Florida, U.S., December 22, 2025.

Jessica Koscielniak | Reuters

President Donald Trump on Monday said the U.S. will keep crude oil and tankers seized near Venezuela.

“We’re going to keep it,” Trump told reporters in Palm Beach, Florida after unveiling a new class of battleships named after himself.

“Maybe we’ll sell it, maybe we’ll keep it, maybe we’ll use it in the strategic reserve,” Trump said of the seized oil. “We’re keeping the ships also.”

Trump has ordered a blockade of sanctioned oil tankers entering or leaving Venezuela as he escalates pressure on President Nicolas Maduro.

The U.S. seized a large tanker on Dec. 10 that was carrying more than 1 million barrels of oil, according energy consulting firm Kpler. It intercepted a second vessel over the weekend. Trump confirmed Monday that the U.S. is pursuing a third tanker.

“It’s moving along. We’ll end up getting it,” Trump said of the tanker. “It came from the wrong location. It came out of Venezuela, and it was sanctioned.”

Trump said “it would be smart” for Maduro to step down when asked whether his ultimate goal is to oust the Venezuelan president.

Venezuela is a founding member of OPEC and has the largest proven oil reserves in the world. It is exporting about 749,000 barrels per day this year with more than half that oil going to China, according to data from Kpler.

The U.S. has staged a major military build up in the Caribbean. The Trump administration has launched deadly strikes on boats that it says were trafficking drugs to the U.S. The legality of those strikes is disupted and has been subject to scrutiny by Congress.

Trump threatened Monday to expand the strikes to land.

“We’ll be starting the same program on land,” he said. “If they want to come by land, they’re going to end up having a big problem. They’re going to get blown to pieces, because we don’t want our people poisoned.”

Environment

Pennsylvania Turnpike opens its first federally funded EV chargers

Published

13 hours ago

December 22, 2025

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Pennsylvania Turnpike opens its first federally funded EV chargers

Pennsylvania Turnpike EV chargers — Photo: PennDOT

Pennsylvania just opened its first federally funded EV charging station on the Pennsylvania Turnpike — a key step toward making long-distance EV travel easier across the state.

The new station just opened at the Blue Mountain Service Plaza at Exit 202 westbound. Another NEVI-funded site at the New Stanton Service Plaza (Exit 77 westbound) is expected to open next week, according to the Pennsylvania Department of Transportation (PennDOT).

The chargers were built using funds from the federal National Electric Vehicle Infrastructure (NEVI) program, which is designed to install fast, reliable charging stations where drivers already stop — especially along busy highway corridors.

The Pennsylvania Turnpike is one of the state’s most heavily traveled roads, particularly during holiday travel, making service plazas a natural location for en-route EV charging. This first Turnpike site marks the beginning of NEVI-funded charging directly on the state’s toll road.

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The Blue Mountain and New Stanton locations are part of the Turnpike’s larger, systemwide EV charging rollout. Working with Applegreen Electric, the Turnpike plans to install 80 new universal EV charging stations across all 17 service plazas by the end of 2027.

In addition to the NEVI-funded sites, the Turnpike has already brought new chargers online at the North Somerset, South Somerset, and Hickory Run service plazas using funding from Pennsylvania’s Driving PA Forward program. Each location offers high-speed charging with four ports per site, and all chargers are designed to work with all EV models without the need for adapters.

The project was awarded under the first round of PennDOT’s NEVI Alternative Fuel Corridor program. The next phase of funding, known as Corridor Connections, is focused on filling in charging gaps along major roadways that fall outside previously designated alternative fuel corridors. The goal is to make longer EV trips across Pennsylvania easier and more predictable.

The announcement also comes as Pennsylvania continues to push back against federal attempts to block EV funding. The US Department of Transportation is currently withholding congressionally approved money that would have supported EV infrastructure projects and jobs in the state. Governor Josh Shapiro (D-PA) sued the Trump administration over the move and, alongside 15 other states, successfully challenged an earlier attempt to derail the NEVI program. That legal fight helped keep projects like these Turnpike charging stations moving forward across the Commonwealth.

Electrek’s Take

This is precisely what the Biden administration’s NEVI program was meant to do: put fast, reliable charging stations where drivers already stop. Service plazas on major turnpikes are prime real estate for EV charging, particularly during holiday and long-distance travel. Pennsylvania’s rollout is still early days, but once chargers are live at all 17 plazas – assuming the federal funding spigot stays open – one of the Northeast’s busiest corridors is going to be a great place to road-trip in an EV.