Investors can breathe a sigh of relief now that September — historically the worst month of the year for stocks — is in the rear-view mirror. This past September certainly lived up to its reputation, with the S & P 500 and the Nadsaq suffering its biggest monthly loss in 2023. However, changing the calendar may not be enough to erase three material hurdles standing in the way of stocks returning to their winning ways. We’re talking about this year’s rise in bond yields, oil prices and the dollar — all at the time same. The 10-year Treasury yield on Monday hit its highest level since October 2007, breaking slightly above 4.7%, in a continuation of its march higher since April. In the third quarter alone, the 10-year yield climbed from roughly 3.8% to Friday’s settle of nearly 4.58%. In the three months that ended Friday, both the U.S. oil benchmark and the international crude standard posted their largest quarterly price increases since the first quarter of 2022, when Russia’s invasion of Ukraine roiled energy markets and sent the commodity soaring. The U.S. dollar index — which measures the greenback against six other currencies including the euro and Japanese yen – is riding an 11-week win streak, en route Monday to fresh highs for the year. To be sure, other factors such as a potential U.S. government shutdown — which has been temporarily avoided — and the multiweek United Auto Workers strike against General Motors (GM), Jeep parent Stellantis (STLA) and Club holding Ford Motor (F) have also injected uncertainty into the marketplace. Nevertheless, bond yields, oil prices and the dollar always have far-reaching implications for the stock market. Here’s a closer look at how they’re currently impacting things. US10Y YTD mountain 10-yield Treasury yield YTD It all starts with the bond market. “The higher yields, that’s what’s been pressuring the equity market,” Wharton School professor Jeremy Siegel said Monday on CNBC. Indeed, U.S. government bond prices sold off in September. The resulting jump in yields — which move inversely to bond prices — accelerated after the Federal Reserve on Sept. 20 indicated interest rates may stay “higher for longer,” as the central bank seeks to bring inflation down further, and the market finally listened. Of course, there are those of us who are worried that the full impact of the 11 rate hikes already made by the Fed since March 2022 has not fully been realized in the economy. Therefore, we think a higher for longer policy may be misguided. In September, the S & P 500 dropped 4.9% while the tech-heavy Nasdaq slumped 5.8%. The Dow Jones Industrial Average proved to be the relative outperformer, falling only 3.5% in the month. Still, the Dow’s decline was its worst monthly decline since February. Bonds impact stocks in multiple ways, including competing over investment dollars. Higher yields on U.S. government notes — which are the closest possible thing to a risk-free investment — can make bonds more attractive to own compared to stocks. That results in fewer incremental dollars going into riskier equities. Essentially, the risk-reward bar for stocks is raised when bonds offer more competitive returns than they did before. This plays out most notably in the Utilities sector , which has by far been the worst-performing sector in the S & P 500 this year, down more than 20%. The group traditionally is slower growing but offers large dividend payments, kind of like bonds. Bonds figure heavily into the way investors think about valuing stocks, especially for growth-oriented companies whose profits are largely expected to be generated years down the road. In a higher yield environment, those projected future earnings are worth less to investors today. This dynamic manifests in investors reconsidering the “multiple” they’re willing to pay for each dollar of earnings — which in turn can lower the price at which they’re willing to buy shares of a given company. Unprofitable companies tend to get hit harder when interest rates rise, which is why when the Fed started hiking last year we made a rule for the Club to only buy stocks of profitable, cash-flow generative companies. In general, companies generating substantial profits are typically less sensitive to the change in yields. @CL.1 @LCO.1 YTD mountain WTI vs. Brent crude YTD In the third quarter, West Texas Intermediate crude, the U.S. oil standard, rose more than 28% to nearly $91 per barrel. The global benchmark, Brent crude, jumped more than 27% to just over $92 per barrel. Both oil gauges are riding four-month win streaks after WTI traded in just the upper $60s in mid-June and Brent traded in the low $70s around the same time. The increase in oil prices over the summer months into the fall largely reflects a mismatch between demand (as economic data has proven more resilient than expected) and available supply (as major oil exporters Saudi Arabia and Russia took voluntary steps to reduce production). In early September, the two countries announced their supply cuts would extend through year-end, a surprise decision that added upward pressure on oil prices. For oil-and-gas companies, such as Club names Pioneer Natural Resources (PXD) and Coterra Energy (CTRA), higher prices are a boon to their financials. It’s no surprise energy was the only positive sector of the 11 in the S & P 500 in September. The picture is less clear-cut when considering the impact higher oil prices can have on consumers and non-energy companies. Consumers needing to pay more at the gas pump, in theory, cuts into the money they have available to spend on discretionary goods — an important dynamic to watch given consumer spending makes up about two-thirds of U.S. economic activity. Discretionary spending is on stuff consumers want, not the staples they have to have to conduct their daily lives. For much of the first part of the year, lower energy prices contributed to the decline in inflation. Now, crude has gone from tailwind to headwind in the battle to bring down inflation. To bond traders who have been driving yields higher, stickier inflation means possibly a heavier-handed Fed — the higher-rates-for-longer scenario. Inflation reduces the attractiveness of owning bonds, motivating investors to sell and in the process pushing up yields. “Don’t forget: Bondholders look at overall inflation. They don’t just look at core inflation,” Siegel said. “Core inflation might be doing good. Overall inflation is going to be affected by those oil prices.” Non-energy companies feel pain from more expensive oil, increasing transportation and freight costs that could cut into profit margins. Of course, firms could mitigate higher fuel costs by raising prices on the finished products — protecting their bottom lines in the near term but adding to the inflationary pressures in the broader economy. Technically, the Fed focuses on core inflation data, which strips out more volatile food and energy prices. However, companies passing through their higher energy costs would eventually make their way into inflation data. To be sure, firms “might struggle to pass on rising input costs this time, in contrast to [2021 and 2022],” JPMorgan global equity strategists wrote in a note to clients Monday. In many cases, crude prices trending higher could be interpreted as a sign of economic health — if there’s a lot of activity out there, that’s going to drive demand for oil, supporting prices. In those situations, equity investors might be more encouraged by the strong economic data and what that means for revenue and profit growth, rather than their concern about the inflationary impacts. It’s a bit more nuanced this time around, with the rise in oil prices primarily tied to a “supply shock, Wharton’s Siegel said, versus a significant increase in demand. @DX.1 YTD mountain U.S. dollar index YTD The U.S. dollar is once again something for stock market investors to worry about — territory it occupied for a good chunk of last year, as it soared to its highest levels in two decades. Higher rates often lead to a stronger dollar. In that way, the Fed’s higher-for-longer approach served not only to pump bond yields but the dollar, too. After a downward trend that began last fall , the U.S. dollar index reached its lowest level of 2023 on July 13, at 99.77 – representing a 12.6% decline from its September 2022 high of 114.11, according to FactSet. However, the U.S. dollar index has returned to rally mode, up about 7% to 106.89 on Monday since its July nadir. “Historically, strengthening [in the dollar] was almost always met with risk-off in equities,” JPMorgan wrote in its Monday to clients. A strengthening U.S. dollar is particularly problematic for U.S.-based companies that generate a significant portion of their sales overseas, such as Club holding Procter & Gamble (PG) and tech stalwarts like Meta Platforms (META) and Apple (AAPL). Converting profits generated overseas in weaker currencies into stronger dollars can weigh on reported revenue sales and bottom-line earnings. At the Club, we tend to look through currency fluctuations and focus more on each company’s underlying fundamentals. Our longer-term focus enables this approach, but we recognize that other, influential traders and investors take a different view, which can impact the overall market. (Jim Cramer’s Charitable Trust is long META, AAPL, PG, PXD and CTRA. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
People walk along Wall Street outside of the New York Stock Exchange (NYSE) on May 03, 2023.
Spencer Platt | Getty Images
Investors can breathe a sigh of relief now that September — historically the worst month of the year for stocks — is in the rear-view mirror. This past September certainly lived up to its reputation, with the S&P 500 and the Nadsaq suffering its biggest monthly loss in 2023. However, changing the calendar may not be enough to erase three material hurdles standing in the way of stocks returning to their winning ways.
Japanese equipment giant Komatsu dropped its new, 320-ton Power Agnostic 930E mining truck at MinsExpo trade show in Las Vegas, calling it a future-ready solution that can run on diesel, hydrogen, or pure electric power.
Komatsu continues to develop alternative engine technology with the release of its first commercial rigid-frame dump truck with a “power agnostic” platform for running on diesel, hydrogen, or even battery electric power.
“This platform enables mining companies to start with conventional diesel engines and gradually transition to cleaner energy sources as needed, including utilization of trolley assist for diesel or as one of the future dynamic charging solutions for battery trucks to reduce fuel consumption and emissions,” reads Komatsu’s press material. “Whether adopting battery technology, hydrogen fuel cell technology or a combination of energy systems, the Power Agnostic 930E provides the infrastructure and adaptability necessary to meet evolving sustainability goals.”
Potential customers got a sneak peek at the concept truck, which they were apparently allowed to test at Komatsu’s Arizona proving grounds ahead of MineExpo (I wasn’t invited). The first pre-production Power Agnostic 930E prototype will make its way to Sweden in the coming months, where it will be put to work alongside other electric Komatsu machines in Boliden’s Aitik copper mine, one of the largest such operations on the European continent.
Electrek’s Take
Converting gas and diesel-fueled cars to electric at scale is a concept that’s fraught with problems. Far too many to list here, in fact. But heavy equipment?
Everything from excavators to loaders to heavy trucks are already built to be powertrain agnostic, and manufacturers will often offer the same basic vehicle with Cummins, Detroit Diesel, or Volvo Pentapower, so there’s a degree of openness baked into those systems already. Komatsu is just taking that to the next level by adding a modularity of energy storage (fuel tanks, hydrogen cells, or battery packs) to the mix. And, if the project is successful, it could be the first of many.
isinwheel’s terrific personal EVs “bring all the things you want closer to you.” Whether it’s an electric scooter, an e-bike, or an e-skateboard, the three things you’re guaranteed to get no matter which you choose are fun, safety, and affordability.
We’re taking a closer look below at six of isinwheel’s personal EVs – could one of these be your next electric ride?
Table of contents
isinwheel S9Pro commuting electric scooter
Meet the isinwheel S9Pro, the best value-for-money electric scooter that zips you through your day at speeds up to 19 mph with a range of 19 miles – perfect for your daily commute.
The S9Pro‘s powerful 350W motor delivers a smooth, efficient ride without breaking the bank. With a lightweight, foldable aluminum frame, it’s easy to carry, store, and even pop into your car trunk or onto public transport. Plus, the quick one-step folding mechanism makes it the ultimate on-the-go companion.
The isinwheel S10Max is your ultimate high-performance ride, powered by a beastly 1000W motor that conquers any terrain with ease. With an impressive range of up to 37 miles, you can enjoy long-distance adventures without worrying about recharging.
The S10Max‘s all-terrain 10-inch off-road tires, paired with dual shock absorption, provide unbeatable grip and stability whether you’re cruising through city streets, on country paths, or on muddy trails.
Unleash your adventurous side with the isinwheel GT2. With a powerful 1000W motor, it rockets up to 28 mph, effortlessly conquering steep hills and challenging landscapes for a thrilling ride every time.
Its 11-inch off-road tires are built for all terrains, whether you’re cruising through the city or tackling rugged countryside paths. Plus, with four advanced shock absorbers, every ride is smooth and stable, no matter where your journey takes you. Get ready to ride the GT2 and experience performance like never before!
The isinwheel M10 electric commuter bike blends style with power. Crafted from lightweight, rust-resistant aluminum alloy, this sleek ride weighs just 47 pounds, making it easy to carry and tough enough to last.
With a professional 35-speed transmission, the M10 adapts to your every need, whether you’re accelerating, cruising downhill, or conquering steep inclines. With a 500W motor capacity, a top speed of 20 mph, 374 Wh battery capacity, and four hours of charging time, it’s the perfect blend of performance and convenience for your daily commute!
Say hello to the versatile isinwheel U1! With folding handlebars, pedals, and a height-adjustable seat, it’s perfect for easy storage and transport. The U1’s 500W motor comes with a smart chip that instantly adapts to give you that extra boost when you hit an incline, face a headwind, or carry more weight.
The U1 has a top speed of 18 mph, 280 Wh of battery capacity, and three hours of charging time. Whether you’re zipping through city streets or tackling hills, the U1 has you covered with power and portability.
Check out isinwheel’s V8, V6 and V10 electric skateboards
The isinwheel V8 electric skateboard is your ticket to thrilling rides, featuring a top speed of 28 mph and a range of up to 12 miles. Its removable, detachable batteries allow for quick swaps, so you can extend your adventure with ease. Choose from four riding modes and let the gorgeous ambient lights make you stand out, whether you’re cruising in daylight or lighting up the night. With its powerful dual 540W motors and regenerative braking system, the V8 delivers a ride that’s as exhilarating as it is stylish.
The V8 is isinwheel’s first-gen electric skateboard, and we’ve also taken it to the next level. The V6 is perfect for teens and beginners, and the high-performance V10 is for those who crave more power. But we’re not stopping there – this September, we’re launching the V6 PRO, the ultimate cool ride for young skaters and newbies. Stay tuned; it’s going to be epic!
It’s no Ferrari, but owning a sporty little Fiat 500e is about as close to putting a cavallino rampante in the garage as most of us will ever get. And if we act soon, we could do just that for 30% less money than before.
Fiat parent company Stellantis is giving dealers the ability to offer buyers up to $3,000 in coupons and incentives to help move its slow-selling 2024 FIAT 500e coupes. When paired with a $7,500 factory lease credit through Stellantis Financial, those coupons lead CarsDirect analysts to call the 500e one of the most affordable new EVs on the market.
The math maths
2024 FIAT (500e) RED in Miami; via Stellantis.
Between coupons and Stellantis Financial cash, that’s $10,500 in potential discounts before negotiations even begin. With a base MSRP of $34,095 with destination for a 2024 500e, that’s a JC Penney-style 31% off, with an additional 2% (presumably) within easy reach.
According to CarsDirect, the biggest downside of the coupon program is that it’s still unadvertised, which means there’s no way of telling how much of the allowable discount dealers are actually including in prices. But (as GI Joe taught us) knowing is half the battle, so click here to find deals on a new Fiat 500e near you, and make “are you applying those $3,000 in Stellantis coupons” one of your first questions.
Electrek’s Take
2024 FIAT (500e) RED interior; via Stellantis.
Small cars have never sold well in America. Not even great ones like the OG Honda CRX or Suzuki Swift GTi. Americans tend to buy for low use case scenarios, which is a fancy way of saying that, if an American thinks they’ll need a pickup 2-3 days/year, they’ll convince themselves to drive a pickup for the other 362 days. The British want more taxes than Americans wanted to pay in 1775, and today we have more gun shops than McDonald’s … just in case.
The little Fiat, in other words, was never going to be a volume player in the US. And that’s too bad, because the little 117 hp microcar is, by all accounts, fun to drive, zippy, and unquestionably cool. The media at large, though, has complained about the 37 kWh battery and 149 miles of EPA range – calling both “inadequate,” despite the fact that the first-generation Nissan LEAF had objectively inferior specs and sold 200,000 examples before getting its first significant upgrade in 2016. And, frankly, that Nissan had about as much style as a hospital gown.
So, while it may not offer what most car buyers think they need – as a second car, or a fun, urban runabout for lighthearted singles, the little Fiat is tough to beat (especially in red).