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CNBC Daily Open: Wall Street extends winning run

Published

9 months ago

August 20, 2024

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Traders work the floor of the New York Stock Exchange on August 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

Winning run
The S&P 500 and the Nasdaq Composite rose for the eighth straight session, up 0.97% and 1.39%, respectively, marking their longest winning streak so far this year. The Dow Jones Industrial Average jumped 0.58%. Meanwhile, the yield on the 10-year Treasury was little changed as investors await minutes of the Federal Reserve’s meeting and Chair Jerome Powell’s speech at Jackson Hole on Friday. U.S. oil prices fell almost 3% as the U.S. pushes for a Middle East ceasefire deal.

AMD deal
Advanced Micro Devices is acquiring server maker ZT Systems for $4.9 billion to strengthen its AI chip and hardware portfolio. The move allows AMD to roll out AI chips at the scale customers such as Microsoft require and to compete more effectively with Nvidia. AMD, which had $5.34 billion in cash and short-term investments as of the second quarter, plans to finance 75% of the acquisition with cash and the rest with stocks. The company also plans to split and sell its server manufacturing business as it does not wish to compete with the likes of Super Micro Computer, CEO Lisa Su said.

GM layoffs
General Motors is laying off over 1,000 salaried employees globally in its software and services division, following a review to streamline operations, CNBC has learned. The cuts include about 600 jobs at its tech campus near Detroit. The layoffs, representing 1.3% of GM’s global salaried workforce, come as automakers, including GM, focus on reducing costs amid industry challenges while investing heavily in electric and so-called software-defined vehicles.

Boeing grounds 777X
Boeing has paused 777X flight tests after discovering damage to a structural part. Three 777-9 test aircraft have also been grounded due to damage. Boeing has informed the Federal Aviation Administration and its customers, which have ordered 481 units of the 777X. The impact on certification and delivery is unclear, but this issue could further delay the already behind-schedule 777X program. The news comes as new CEO Kelly Ortberg tries to move the company past its safety crisis.

Asia markets mostly rise
Markets in the Asia-Pacific region were mostly higher, led by Japan’s Nikkei 225, which climbed 2%, powered by utilities and healthcare stocks. Australia’s S&P/ASX 200 edged up 0.17%, while the Reserve Bank of Australia signaled it was “unlikely” that rates would be reduced in the short term as inflation remained “above target” and was “proving persistent.” Hong Kong’s Hang Seng index shed 0.36% after real estate firm Kaisa announced a debt restructuring agreement. Mainland China’s CSI 300 dropped 0.7% as the central bank left benchmark lending rates unchanged. South Korea’s Kospi rose 0.89%.

[PRO] Metric to watch
Veteran investor Mark Mobius is focused on a metric he deems “historically significant” and potentially detrimental to U.S. stocks at a time when markets have been marred with volatility.

The bottom line

AMD estimates the AI chip market will reach $400 billion by 2027. CEO Lisa Su is on a mission to capture a significant share of that market. However, it has to compete with Nvidia, the industry leader. Analysts predict Nvidia’s AI revenue from data centers will hit $105.9 billion this year, while AMD lags with $4.5 billion.

It’s like Microsoft’s Bing challenging Google’s search business. However, AMD is winning customers including Microsoft and Meta Platform. And its striving to strengthen its offerings with the acquisition of ZK Servers to better compete with Nvidia.

“I don’t think it changes anything for the next 1 to 2 years,” said Doug Clinton, managing partner at Deepwater Asset Management, on CNBC’s “Closing Bell.” He emphasized that AMD’s focus is on becoming more competitive in training clusters, supporting hyperscalers in building data centers. However, Nvidia already excels in this area. “It’s not a big threat,” Clinton added.

Nvidia’s dominance is so strong that Bank of America expects its earnings report on Aug. 28 to be a bigger market catalyst than Powell’s speech at Jackson Hole on Aug. 23, CNBC’s Sarah Min has more on bank’s views.

While investors were concerned about a recession at the start of the month, which contributed to a sell-off, Goldman Sachs has lowered the probability of a recession to 20% after more favourable jobs and retail sales data.

Jan Hatzius, Goldman Sachs chief economist, told CNBC’s “Squawk on the Street,” that the investment bank could lower the probability further depending on the next jobs report in September. In the meantime, Hatzius doesn’t believe Powell will allow himself to be “nailed down” on what the Fed’s next move will be.

“I think he’s not going to be specific, in terms of the moves that are coming, I’m sure his comments will be consistent with the idea that the risks are more two-sided, and there are some signs of softening in some areas and more importantly, or as importantly, inflation has come down. I don’t think he’s going let himself be, you know, nailed down one way or the other,” Hatzius said.

“If the data supports 50 [basis points], they should do 50, and I think they will do 50 but I think it much more likely that things would look good enough for a series of 25 basis point cuts to do the job.”

— CNBC’s Alex Harring, Kevin Breuninger, Samantha Subin, Jenni Reid, Rohan Goswami, Michael Wayland and Spencer Kimball contributed to this report.

Environment

U.S. crude oil prices fall more than 4% after OPEC+ agrees to surge production in June

Published

7 hours ago

May 4, 2025

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U.S. crude oil prices fall more than 4% after OPEC+ agrees to surge production in June

Logo of the Organization of the Petroleum Exporting Countries (OPEC)

Andrey Rudakov | Bloomberg | Getty Images

U.S. crude oil futures fell more than 4% on Sunday, after OPEC+ agreed to surge production for a second month.

U.S. crude was down $2.49, or 4.27%, to $55.80 a barrel shortly after trading opened. Global benchmark Brent fell $2.39, or 3.9%, to $58.90 per barrel. Oil prices have fallen more than 20% this year.

The eight producers in the group, led by Saudi Arabia, agreed on Saturday to increase output by another 411,000 barrels per day in June. The decision comes a month after OPEC+ surprised the market by agreeing to surge production in May by the same amount.

The June production hike is nearly triple the 140,000 bpd that Goldman Sachs had originally forecast. OPEC+ is bringing more than 800,000 bpd of additional supply to the market over the course of two months.

Oil prices in April posted the biggest monthly loss since 2021, as U.S. President Donald Trump’s tariffs have raised fears of a recession that will slow demand at the same time that OPEC+ is quickly increasing supply.

Oilfield service firms such as Baker Hughes and SLB are expecting investment in exploration and production to decline this year due to the weak price environment.

“The prospects of an oversupplied oil market, rising tariffs, uncertainty in Mexico and activity weakness in Saudi Arabia are collectively constraining international upstream spending levels,” Baker Hughes CEO Lorenzo Simonelli said on the company’s first-quarter earnings call on April 25.

Oil majors Chevron and Exxon reported first-quarter earnings last week that fell compared to the same period in 2024 due to lower oil prices.

Goldman is forecasting that U.S. crude and Brent prices will average $59 and $63 per barrel, respectively, this year.

Catch up on the latest energy news from CNBC Pro:

Environment

Chicago plans more, and more equitable public charging as EV sales climb

Published

11 hours ago

May 4, 2025

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Chicago plans more, and more equitable public charging as EV sales climb

More public EV charging, including curbside, envisioned in Chicago plan — DC fast charging stations in Chicago; via EVgo.

Electric vehicles’ share of the market continues to climb in America’s second city, with BEV registrations up more than 50% in the first quarter of 2025 compared with the same period last year. Great news, but charging hasn’t up – but a new plan from Chicago Department of Transportation aims to build up enough infrastructure for the city to keep up.

In a bid to keep up with the rapid growth of EVs, Chicago Department of Transportation (CDOT is currently seeking public feedback on a plan called “Chicago Moves Electric Framework.” The city’s first such plan, it outlines initiatives that include a curbside charging pilot through the city’s utility, ComEd, and expanded charging access in key areas throughout the city.

Unlike other such plans, however, the new plan aims to focus on bringing electric vehicle charging to EIEC and low income communities, too.

“Through this framework, we are setting clear goals and identifying solutions that reflect the voices of our residents, communities, and regional partners,” said CDOT Commissioner Tom Carney. “By prioritizing equity and public input, we’re creating a roadmap for electric transportation that serves every neighborhood and helps drive down emissions across Chicago.”

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Neighborhoods on the south and west sides of Chicago experience a disproportionate amount of air pollution and diesel emissions, largely due to vehicle emissions according to CDOT. Despite that, most of Chicago’s public charging stations are clustered in higher-income areas while just 7.8% are in environmental justice neighborhoods that face higher environmental burdens.

“Too often, communities facing the greatest economic and transportation barriers also experience the most air pollution,” explains Chicago Mayor Brandon Johnson. “By prioritizing investments in historically underserved areas and making clean transportation options more affordable and accessible, we can improve both mobility and public health.”

The Framework identifies other near-term policy objectives, as well – such as streamlining the EV charger installation process for businesses and residents and implementing “Low-Emission Zones” in areas disproportionately impacted by air pollution by limiting, or even restricting, access to conventional medium- and heavy-duty vehicles during peak hours.

The Chicago Moves Electric Framework includes the installation of Level 2 and DC fast charging stations in public locations such as libraries and Chicago’s Midway Airport, “supporting not only personal EVs but also electric taxis, ride-hail and commercial fleets.”

Chicago has a goal of installing 2,500 public passenger EV charging stations and electrifying the city’s entire municipal vehicle fleet by 2035.

Electrek’s Take

Chicago Drives Electric | ComEd Press Conference — ComEd press conference at Chicago Drives Electric, 2024; by the author.

I hate to sound like a bed-wetting liberal here, guys, but Chicago is getting EVs absolutely right with big utility incentives on both vehicles and infrastructure, a governor willing to stand behind smart environmental policy, and a solid push for more and better infrastructure in the areas where they’ll do the most good. They’re even thinking of the children.

Here’s hoping more cities follow suit.

SOURCE: ComEd, via Smart Cities Dive; featured image by EVgo.

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Environment

Meet Bodo – the 35 mph electric golf cart that thinks it’s a G-Wagen

Published

16 hours ago

May 4, 2025

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Meet Bodo – the 35 mph electric golf cart that thinks it's a G-Wagen

Bodo G-Wagon electric golf cart; via Mecum Auctions.

With a fully-enclosed, G-Wagen-inspired body and an 80 mile electric range, the Bodo G-Wagon golf cart is the NEV you need when you decide it’s time to get serous one-upping the rest of the Palm Beach country clubbers.

If you love the look of the $230,000 Mercedes-Benz G580 off-roader, but think the 579 hp, 6,800 lb. electric 4×4 is probably overkill for occasional trips to the golf course and country club, this G-Wagen-inspired golf cart might be just what you’re looking for.

The shiny black 2024 Bodo G-Wagon sold at Mecum Auctions last month for $31,900, which seems like it might not be a lot of money to the sort of person who decides to take a flyer on a goofy, limited-use EV that ships with real, metal doors, power windows, heating and air conditioning, fully digital instrument cluster and infotainment, and a “posh,” caramel leather interior.

It even has windshield wipers, power steering, and a rear-seat entertainment system that’s built into the front headrests!

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It’s really nice in there

Under the hood, the Bodo packs a 15 kW (20 hp) electric motor drawing power from a 10 kWh li-ion battery that won’t deliver a scorching 0-60 mph time (it only goes 35), but will deliver you and your buddies from one end of any golf course in North America and back several times over, thanks to the G-Wagon’s 80 mile range.

The official Mecum Auctions listing goes into a bit more detail, and I’ve included it here, in case it gets deleted after a while and you’re just finding this for the first time in 2027:

Be the envy of any country club or golf community showing up with this 2024 Bodo G-Wagon Golf Cart. Perhaps more appropriately known as an E-Wagon, this baby G-Wagon is powered by a 15kW motor with a 10kWh lithium battery. Boasting an 80-mile range and a 35 MPH top speed, the Bodo is an enclosed, luxury golf cart that pampers occupants with heating and air conditioning, rear-seat entertainment, power windows, power locks and a posh, caramel-colored interior. With the Bodo fitted with power steering and 4-wheel power disc brakes with brake boost, drivers will think they’re in a full-size G-Wagon, thanks to the multiscreen entertainment cluster, the rearview camera, windshield wipers, turn signals, running lights and so much more.

Finished in black with the right amount of brightwork, the overall vibe is one of jaw-dropping, smile-inducing fun. While the Bodo would be an excellent choice for any golf community, it should also prove to be hugely popular around a race track or car condo community as well, or maybe even a neighborhood with its own airplane runways. Over the past decade in particular, the demand for unique, luxury golf carts has been on the rise, and understandably so. The number of luxury communities with specific interests in sports, aero and auto has also been on the rise, with people buying homes in these exclusive locations to better engage with like-minded people. All too often a golf cart is the perfect way to get around these gated neighborhoods, and this one is enclosed, comes with the amenities of a full-size car and is infinitely more stylish.

MECUM AUCTIONS

You can check out a few more photos of the 2024 Bodo G-Wagon golf cart that sold at Mecum, below – and if you want one for yourself, you’re in luck! I found this brand-new 2025 “G600 E-Wagon” (in white) for $23,900 at Gulf Carts in Santa Rosa Beach, Florida. Head on down to the comments and let us know if you buy it.

G-Wagon golf cart gallery

SOURCE | LOTS MORE PHOTOS: Mecum Auctions.

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