Traders work on the floor of the New York Stock Exchange on Aug. 16, 2024.
Angela Weiss | AFP | 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
Best week Wall Street had its best week of 2024, recovering from a rout earlier this month.For the week, the S&P 500 surged nearly 3.9%, bringing it within striking distance of its July record high. The tech-heavy Nasdaq Composite saw an even more impressive 5.2% gain, while the Dow Jones Industrial Average advanced a solid 2.9%. Meanwhile, the yield on the 10-year Treasuryfell as data eased concerns of an imminent recession.
Oil sinks U.S. oil prices dropped 2% following reports that Qatar told Iran not to attack Israel amid ongoing Israel-Hamas cease-fire talks. Qatar’s prime minister warned Iranian leaders of the potential consequences of striking Israel when progress is being made, the Washington Post reported, citing diplomats. Talks are expected to resume this week after negotiations were paused on Friday. Hamas did not take part in talks but was briefed by mediators. U.S. Secretary of State Antony Blinken arrived in Israel on Sunday, as efforts intensify to end the 10-month-old war between Israel and Hamas.
Blocked A U.S. judge has temporarily blocked the launch of Venu, a sports streaming service from Disney, Warner Bros. Discovery and Fox. Fubo TV, a competitor, filed an antitrust lawsuit, alleging Venu would harm competition. “Today’s ruling is a victory not only for Fubo but also for consumers. This decision will help ensure that consumers have access to a more competitive marketplace with multiple sports streaming options,” Fubo CEO David Gandler said after the injunction. Fubo’s stock surged 16% after the ruling.
Mpox approval Shares ofBavarian Nordicsurged 14.8% after the Danish biotech firm submitted data to the European Union’s drug regulator to extend its mpox vaccine approval for 12 to 17-year-olds. CEO Paul Chaplin said the move is key in combating the new clade 1b strain, which primarily affects younger people. “More than 70% of the cases in Africa currently are in people younger than 18, so it’s going to be critical that our vaccine can be used in this younger age group,” Chaplin told CNBC. The submission comes after the World Health Organization declared the mpox outbreak in Africa as a public health emergency.
Billion dollar Marvel Disney‘s “Deadpool & Wolverine,” starring Ryan Reynolds and Hugh Jackman, is now the highest-grossing R-rated movie ever, surpassing Warner Bros. Discovery‘s “Joker.” With $516.8 million at the domestic box office and $568.8 million overseas, “Deadpool & Wolverine” has exceeded $1.085 billion globally. The success proves the Marvel Cinematic Universe’s box office strength despite recent setbacks and suggests the studio can explore darker themes without alienating audiences.
[PRO] Favorite tech Despite market swings and tech pullbacks, Bernstein spotlights seven technology, media and telecoms stocks with median 26% upside, offering opportunity amid AI concerns and economic uncertainty.
The bottom line
For anyone waking up in a cold sweat, rest assured — it wasn’t just a bad dream. Global markets did experience a sharp sell-off, with Japan’s Nikkei 225plunging 12.4% and unwinding of the yen carry trade dragging Wall Street down with it. However, markets have since rebounded, reassured by signals that Japan’s central bank will not raise rates in such a volatile environment and that the U.S. economy isn’t on the verge of a recession.
But JPMorgan sees the recent turmoil as more than just a market anomaly. “Many market participants are dismissing the recent blowup of various crowded trades as a fluke or flash cash, but we see it as more of a dress rehearsal for what’s to come,” JPMorgan strategists said in a note.
The financial giant believes that while the risks associated with the carry trade could resurface, the heavy losses investors suffered may temper its future impact, potentially preventing a full-blown market meltdown. Nevertheless, JPMorgan cautions that concerns about economic growth remain a significant threat.
“Looking ahead, until the Sharpe ratios on the carry trades get high, we would not think these would be the catalyst for the next major correction,” the firm said. “Instead, we see the reemergence growth risk as the likely trigger.”
Last week’s U.S. inflation, retail sales and jobs data may have provided some short-term reassurance, but investors are now turning their attention to Federal Reserve Chair Jerome Powell’s upcoming speech in Jackson Hole, Wyoming. Wall Street is eagerly awaiting Powell’s outlook on inflation and the broader economy, as it could signal the direction of interest rate policy — particularly ahead of a possible September rate cut.
Market expectations for a large rate cut in September have diminished. According to the CME FedWatch Tool, investors are still pricing in at least four rate cuts by the end of the year.
However, Goldman Sachs argues that this level of pessimism may be overblown. “The market is still pricing more cuts than our base case for 2024,” which includes a 25-basis-point cut at each of the next three meetings and beyond, Goldman noted. “Another weak jobs report would put a 50-basis-point cut in September on the table, but we think the markets has been over-weighting that probability.”
— CNBC’s Yun Li, Jesse Pound, Spencer Kimball, Brian Evans, Alex Harring, Jeff Cox, Lillian Rizzo, Sarah Whitten, Karen Gilchrist and Sean Conlon contributed to this report.
Wagons don’t get a lot of love Stateside, with American buyers choosing SUVs over – well, pretty much every other type of vehicle imaginable. That’s our loss, as the latest plug in hybrid versions of the Volkswagen Passat are here to prove.
The latest Passat Variant eHybrid (or, in some markets, Vario, which is what the Europeans like to call wagons) is different from the version we get in the US. Unlike the domestic version which is based on a low-cost platform specific to the US and China, the Euro-market version is built on the MQB platform that underpins VW’s flagship Arteon four-door coupe and both VW‘s and Audi’s entry-luxe SUVs.
That might seem weird, since VW has sold more than 34 million units sold worldwide and the Passat is the second top-selling Volkswagen of all time (behind the Golf and ahead of the Beetle). It’s understandable, then, that the European execs are pretty proud of their Passat.
The latest evolutionary stage of the modular transverse matrix (MQB evo)forms the highly innovative technical basis of the ninth Passat generation. Thanks to the significant economies of scale of the MQB evo, Volkswagen has again democratised numerous high-tech developments and made them available for hundreds of thousands of drivers. The two completely newly developed plug-in hybrid drives (eHybrid) are a perfect example of this. In combination with a new battery,they make all-electric ranges of around 100 km possible. This distance turns the new Passat Variant into an electric vehicle for everyday life – this is additionally ensured by short charging times as the battery can now be charged at AC charge points with 11 kW instead of the previous 3.6 kW. The Passat Variant eHybrid can even be charged with up to 50 kW at DC fast charging stations. In addition, the combination of electric drive motor and new economical turbocharged petrol engine provides overall ranges of around 1,000 km.
KAI GRÜNITZ Member of the Brand Board of Management, VW
In case the jealous American wago-philes reading this aren’t jealous enough, Volkswagen has announced new Passat eHybrid Match and Black Editions that add nearly £5k of options for the new model year effectively for free.
Advertisement – scroll for more content
“Match is better equipped than the outgoing Life, with additional features including metallic paint, VW’s IQ.Light LED matrix headlights, tinted rear windows and an ‘assistance pack’ which adds area view and emergency assist,” reports Alastair Crooks, from the UK car site AutoExpress. “The new Black Edition comes with metallic paint, 19-inch alloy wheels, a panoramic sunroof, tinted rear windows (darker than the Match’s), heated front and rear seats, a head-up display, a 15-inch central touchscreen and the same assistance pack as the Match.”
The entry-level Match replaces the previous Life trim, but costs the same £45,555 (about $60,500), while the Black Edition costs the same as the outgoing R-Line, from £48,900 (about $64,950). The order books open 14 August.
You can take a look at some of the VW press photos of the European Passat wagon Variant, below, then let us know if you’d rather have this for $60K or the discount American version in the comments.
If you’re considering going solar, it’s always a good idea to get quotes from a few installers. To make sure you find a trusted, reliable solar installer near you that offers competitive pricing, check out EnergySage, a free service that makes it easy for you to go solar. It has hundreds of pre-vetted solar installers competing for your business, ensuring you get high-quality solutions and save 20-30% compared to going it alone. Plus, it’s free to use, and you won’t get sales calls until you select an installer and share your phone number with them.
Your personalized solar quotes are easy to compare online and you’ll get access to unbiased Energy Advisors to help you every step of the way. Get started here.
FTC: We use income earning auto affiliate links.More.
Wirtgen Vögele recently revealed the battery-powered MINI 500e and the MINI 502e electric pavers. With an electrically heated screed, a range of paving widths, and zero-emission operations, they’re paving a greener, cleaner path.
“These pavers excel on small-scale construction projects and jobs covering a small area – the type of work for which paving crews would not previously have been able to use machines,” reads the official Wirtgen Vögele copy. “Thanks to their elimination of manual labor, among other benefits, the new MINI pavers improve the efficiency and quality of asphalt paving, particularly in the construction of sidewalks and drains, as well as in tight downtown locations.”
The new Wirtgen MINI 502e (the one with wheels) and the MINI 500e (the one with crawler tracks) offer pave widths from 0.25 to 1.8 m, feature a battery-electric drive outputting 22.8 kW (30 hp), and your choice of either a 15 kWh or 22 kWh 48V li-ion battery – good enough battery capacity for up to 16 hours of continuing paving. Both versions can be fully charged on a conventional 110/120 “L1” power socket in about eight hours.
Advertisement – scroll for more content
Electrek’s Take
Wirtgen Vögele MINI 500e; via Wirtgen.
At the end of the day, it doesn’t matter what the federal EV incentives are or even what the guys on your crew want to operate. What matters is that construction noise upsets Mrs. Clancik’s terrier, and she will force the town council to keep the noise down all by herself.
If your construction company wants to bid on any municipal work, that means you’re gonna have to stay quiet. Maybe even keep the smells to a minimum, too. Buying electric equipment means you can do both.
If you’re considering going solar, it’s always a good idea to get quotes from a few installers. To make sure you find a trusted, reliable solar installer near you that offers competitive pricing, check out EnergySage, a free service that makes it easy for you to go solar. It has hundreds of pre-vetted solar installers competing for your business, ensuring you get high-quality solutions and save 20-30% compared to going it alone. Plus, it’s free to use, and you won’t get sales calls until you select an installer and share your phone number with them.
Your personalized solar quotes are easy to compare online and you’ll get access to unbiased Energy Advisors to help you every step of the way. Get started here.
FTC: We use income earning auto affiliate links.More.
Car brands like Volvo, Mercedes-Benz, and Tesla have built up solid reputations for safety, but their ultra-safe vehicles often come with a premium price tag. The good news for car buyers looking for a deal, but still prize safety, is that there’s an all-electric Hyundai for under $40K that scores top marks on the IIHS’ toughest new safety tests.
Last Februray, the Insurance Institute for Highway Safety (IIHS) established new benchmark criteria that included stricter side-impact and moderate overlap crash safety standards, improved safety for back seat passengers, and a stronger emphasis on pedestrian detection in low light.
“We followed the tougher requirements we introduced last year with another major update to the award criteria,” explains IIHS President David Harkey. “(The 2024) winners are true standouts, offering the highest level of protection for both vehicle occupants and other vulnerable road users.”
Advertisement – scroll for more content
The Insurance Institute for Highway Safety is making it harder to earn its Top Safety Pick and Top Safety Pick+ awards from 2024, challenging manufacturers to offer better protection for back seat passengers and improve their pedestrian crash avoidance systems.
We’ve covered a few of the standout performers already over the past year-plus since the new safety standards were awarded, including the Rivian R1T (the only electric pickup to earn the coveted Top Safety Pick+ award), Audi Q6 e-tron, and the Tesla Model Y … but what we haven’t written about was the fact that the Hyundai IONIQ 6 was the only electric sedan to get a Top Safety Pick+, as well.
The good news is that it’s an excellent option. The 2024 version was named Car and Driver‘s 2023 EV of the Year, and led our own Scooter Doll to ask, “is any other automaker delivering more value in high-tech EVs right now?” and Nigel Evans over at CarBuzz to write, “Comparing the Ioniq 6 to its rivals is also an interesting exercise. For example, the Tesla Model 3 RWD now costs more than $40,000, with questionable interior design and layout and no Top Safety Pick+ from the IIHS. You can’t get the Chevrolet Bolt or Bolt EUV anymore in the budget EV sector, but they also lacked fast-charging capability.”
With up to 342 miles of range and a starting MSRP of $37,850 with all trims eligible for $7,500 in Retail Bonus Cash through Labor Day plus dealer discounts (if you can get them) bringing the price down even further, there’s a nonzero chance car buyers will be able to score a 2025 Hyundai IONIQ 6 for a sub-30K transaction price. Other featured deals include 0% interest financing for up to 48 months on any 2025 IONIQ 5 models in dealer inventory for well-qualified buyers, while lease buyers able to get a new SE model for $199/mo. with $3,999 down.
If you’re considering going solar, it’s always a good idea to get quotes from a few installers. To make sure you find a trusted, reliable solar installer near you that offers competitive pricing, check out EnergySage, a free service that makes it easy for you to go solar. It has hundreds of pre-vetted solar installers competing for your business, ensuring you get high-quality solutions and save 20-30% compared to going it alone. Plus, it’s free to use, and you won’t get sales calls until you select an installer and share your phone number with them.
Your personalized solar quotes are easy to compare online and you’ll get access to unbiased Energy Advisors to help you every step of the way. Get started here.
FTC: We use income earning auto affiliate links.More.