Traders work on the floor of the New York Stock Exchange during morning trading on August 06, 2024 in New York City.
Michael M. Santiago | Getty Images
This report is from today’s CNBC Daily Open, our 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
Broad rally Wall Street staged a broad-based rally, snapping a three-day losing streak. The Dow Jones Industrial Average rose almost 300 points, while the S&P 500 and Nasdaq Composite both rose more than 1%. All 11 S&P 500 sectors closed in positive territory. Mega caps rebounded from Monday’s losses, with Nvidia and Meta Platforms, gaining 3.8% and 3.9%, respectively. The yield on the 10-year Treasury ticked higher, while U.S. oil pricesrose after hitting six-month lows on Monday.
Not so super Super Micro Computer shares fell 13% after the company’s fourth-quarter earnings missed estimates. The company, whose first-quarter revenue forecast exceeded Wall Street’s estimates, also announced a 10-for-1 stock split. Super Micro is a key supplier of servers for Nvidia, a major player in the AI boom, and has seen significant growth in recent years. However, the company’s profitability is now a concern for investors. Its gross margin dropped to 11.2% in the reported quarter, down from 17%, a year earlier.
Microsoft vs Delta Microsoft accused Delta Air Lines of outdated technology after an IT outage in July caused the airline to cancel more than 5,000 flights. The company, which said the incident had caused it $500 million in losses, is seeking damages from Microsoft and CrowdStrike. A botched software update from CrowdStrike last month had affected millions of computers running Microsoft Windows. Microsoft questioned why Delta struggled to recover compared to other airlines, suggesting Delta hasn’t modernized its IT infrastructure. Delta refutes the claim.
X sues advertisers Elon Musk’s X, formerly Twitter, is suing a group of advertisers for allegedly orchestrating an illegal boycott that cost the platform billions in revenue. The lawsuit, filed in Texas, accuses the World Federation of Advertisers and its members of violating antitrust laws by stopping advertising after Musk’s takeover. Musk, on X, declared “war” against the advertisers, while X CEO Linda Yaccarino cited evidence uncovered by the U.S. House Judiciary Committee to support the lawsuit’s claims.
Airbnb shares sink Airbnb‘s stock fell 14% in extended trading after its second-quarter earnings missed expectations. The company also warned of slowing growth, particularly in the U.S. It reported a net income of $555 million, or 86 cents per share, down 15% year-over-year from $650 million, or 98 cents per share. The company projects third-quarter revenue of $3.67 billion to $3.73 billion but cautioned that it was “seeing shorter booking lead times globally and some signs of slowing demand from U.S. guests.”
Peter Oppenheimer, Goldman Sachs’ chief global equity strategist, told CNBC the market correction was “healthy and somewhat inevitable” after a very strong first half of the year especially given signs of a slowing U.S. economy and growing “complacency” in the market.
“My feeling is that this correction, although is stabilizing, is not yet over. We’re still going to see, I think, some choppy environments in the short-term as investors really start to calibrate and get more confident again about the direction of interest rates and the economy. But at the same time I don’t think we are in a bear market and there are going to be some good opportunities here.”
Asked by CNBC’s David Faber if now was a good entry point to get investors back into the market, with the multiple on the Nasdaq down to 24-time earnings, Oppenheimer said, “I think it hasn’t come down enough.” He expects further declines before value investors see it as a good buying opportunity.
Mega cap stocks were routed on Monday losing $1 trillion in early trading before recovering some ground. There has been a lot of concern around earnings and the billions spent by Microsoft, Meta, Amazon and Alphabet on AI data centers. Hedge fund Elliott Management reportedly told clients that Nvidia was in a “bubble” and the AI frenzy was “overhyped.”
“If you look at just Microsoft‘s Azure numbers, they went from being a zero-dollar business seven quarters ago to having a $6 billion run rate today. I would challenge anyone to tell me what other business grew from zero to $6 billion in a year and a half. And that is just the early early innings of this AI trade.”
— CNBC’s Hakyung Kim, Samantha Subin, Sean Conlon, Jeff Cox, Rohan Goswami, Leslie Josephs and Spencer Kimball contributed to this report.
Solid-state batteries have long been the holy grail of electric vehicles, especially for light EVs like electric bicycles that are usually charged indoors. They hold major safety benefits over traditional lithium-ion batteries, plus offer better energy density, making it possible to use smaller batteries or simply fit more capacity in the same-sized battery pack.
Solid-state batteries have spent decades being touted as five years away, but if you thought you’d have to keep waiting, then I’ve got news for you: yes, you still have to keep waiting.
However, in the meantime, semi-solid-state batteries are here and will be launched on their first production e-bike next month.
I had the chance to check out the batteries in person at EICMA 2025 when I visited with the company that makes them, T&D. The company was spun out of e-bike component maker Bafang (and founded by the same co-founder of Bafang, Sunny He) in order to move more in the direction of electric motorcycle component development.
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In addition to their drivetrain components, a significant portion of their R&D has also focused on semi-solid-state batteries, which contain a minimal amount of electrolyte compared to traditional lithium-ion batteries found in today’s e-bikes. With a fraction of the electrolyte material, these semi-solid-state batteries developed by T&D are more energy-dense and safer than traditional batteries. The cells can be stabbed through by a nail and won’t ignite – don’t try that with the battery on your current e-bike!
Whereas most e-bike batteries today have an energy density of around 150-250 Wh/kg, these new semi-solid-state batteries push the needle even further into the 250-350 Wh/kg ballpark, depending on the specific packaging.
The cells are also rated for long cycle lifespan, with an expected 1,500 charge cycles before reaching 70% of the original capacity. And with fast-charging support, those same cells can be recharged significantly more quickly.
T&D’s semi-solid-state batteries will roll out on their first production e-bike next month, though the company isn’t at liberty to announce which e-bike maker will land the title of first production electric bike with semi-solid-state batteries. Hopefully we’ll hear that announcement soon.
T&D is also known for its e-moto drivetrains. The company’s new Equator City commuter e-moped project, launched in collaboration with Dimentro, utilizes T&D’s swingarm-mounted motor system.
The drivetrain offers 11 kW of peak power, a 5 kWh high-capacity LFP battery, and supports a range of over 100 km (62 miles).
Other projects featuring T&D’s drivetrains at the booth included interesting examples such as a part go-kart, part tractor project that resembles a heavy-towing ATV.
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Ford’s CEO Jim Farley admitted he was humbled after tearing down the first Tesla and Chinese EVs. If it wants to compete globally, Ford can’t walk away from EVs altogether, so it’s planning to shake things up.
Ford can’t walk away from EVs, or it will lose to China
After taking apart a Tesla Model 3 and several electric vehicles from China for the first time, Farley said he was “very humbled” during a new episode of the Office Hours: Business Edition podcast.
The “shocking” revelation is what pushed Ford to overhaul its EV program. Ford is shifting its focus to smaller, more affordable EVs, which require smaller batteries and fewer materials.
Ford is promising its next-generation electric vehicles will be significantly more efficient and advanced than the current Mustang Mach-E and F-150 Lightning. Farley told host Monica Langley that the Mach-E had about 1.6 km of electrical wiring, which led to a larger battery.
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Ford’s CEO has warned several times now that Chinese EV makers pose an “existential threat” to Western brands, including itself.
Xiaomi SU7 (Source: Xiaomi)
After flying a Xiaomi SU7 from Shanghai to Chicago last year and driving it around for a few months, Farley even said he didn’t want to give it up.
“EVs are exploding in China,” Ford’s CEO said on the podcast, adding the Chinese government had its “foot on the economic scale” to promote electric vehicles.
Xiaomi SU7 production (Source: Xiaomi)
Although the US is facing headwinds with the $7,500 federal tax credit now expired and the Trump administration shifting policies, Farley admitted, “We can’t walk away from EVs, not just for the US, but if we want to be a global company, I’m not going to just cede that to the Chinese.”
Ford, like most automakers, is bracing for slower EV sales over the next few months. Farley said on the company’s third-quarter earnings call that he expects electric vehicles to account for just 5% of the US market in the near term.
The 2026 Ford F-150 Lightning STX (Source: Ford)
The “EV market in the US is totally different than we thought,” Farley explained during the podcast, adding buyers are looking for more affordable options rather than the “$70-80,000” EV.
To stay competitive, Ford is betting on its new low-cost EV platform, the Ford Universal EV Platform, which the company says will help unlock more affordable electric cars.
CEO Jim Farley presents the Ford Universal EV Platform in Kentucky (Source: Ford)
The first vehicle Ford plans to launch on the platform is a midsize electric pickup, starting at around $30,000. It’s expected to arrive in 2027. Ford will use lower-cost LFP batteries licensed from China’s CATL. They will be manufactured at Ford’s new plant in Michigan.
According to Lisa Drake, Ford’s vice president of tech platform programs and EV systems, the company intends to match the cost structure of leading Chinese brands.
In the meantime, Ford has paused production of its current electric pickup, the F-150 Lightning. A new report from The Wall Street Journal claims it’s now considering scrapping the EV pickup altogether.
The Mercedes GLB EV will be here in less than a month. With its debut just around the corner, Mercedes offered a first look at the new GLB EV’s interior, and yes, it’s loaded with massive screens.
First look at the new Mercedes GLB EV interior
Mercedes is putting the new electric GLB through the paces at the Mercedes Technology Center (MTC) in Singlefingen, Germany, ahead of its world premiere on December 8.
The testing is conducted in wind tunnels that range in temperature from -40 to 104 degrees Fahrenheit. Meanwhile, snow cannons shoot various types of snow while high-powered fans generate winds up to 124 mph, simulating fierce blizzard conditions.
Although it’s covered in snow, you can still see that the new EV version maintains a similar boxy design to the current gas-powered GLB.
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If you look a little closer, it appears to have a larger grille design, like the new GLC EV, which Mercedes said “redefines” the face of the brand.
Mercedes also unveiled the new GLB EV’s interior for the first time, which looks pretty similar to the GLC’s. The optional floating MBUX Superscreen is the highlight, extending the entire width of the dash.
The new Mercedes GLB EV during cold-weather testing (Source: Mercedes-Benz)
It also features Mercedes’ new multifunction steering wheel, which reintroduces a rocker switch for the cruise control.
Another new feature is the concave door handle design, which features a floating center panel that opens a storage space. The center console has a similar design, offering an optional wireless charging cradle and cup holders.
The interior of the new Mercedes GLB EV (Source: Mercedes-Benz)
Mercedes said the new SUV offers “noticeably more headroom for first and second row occupants” compared to its predecessor. It will offer standard seating for five, with the option to add a third row for seven.
According to Mercedes, the new GLB takes “interior climate comfort” to the next level. For example, the climate control heats up twice as fast as its predecessor during a 20-minute drive at 19 degrees Fahrenheit. Mercedes said that since it only requires half the energy of the current GLB, it helps maximize range.
We will learn more about the Mercedes GLB EV on December 8. Check back soon for updates.
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