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Traders work on the floor of the New York Stock Exchange during morning trading on August 12, 2024 in New York City. 

Michael M. Santiago | Getty Images News | 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

Sharp decline
Wall Street fell ahead of Federal Reserve Chair Jerome Powell’s speech at Jackson Hole, Wyoming. The
S&P 500 dropped 0.89% after coming within striking distance of its all-time high. The Dow Jones Industrial Average slid 0.43% and the Nasdaq Composite lost 1.67%. All three indexes had traded higher during the session. The yield on the 10-year Treasury climbed nearly 9 basis points to 3.862%, while U.S. oil prices rose 1.42% after erasing most of their 2024 gains.

September rate cut
Philadelphia Fed President Patrick Harker endorsed an interest rate cut for September during an interview with CNBC at the Fed’s Jackson Hole retreat. His comments follow minutes from the central bank’s last meeting indicating growing confidence in inflation trends and concerns about labor market weakness. “I think it means this September we need to start a process of moving rates down,” Harker said, adding the Fed should ease “methodically and signal well in advance.” Harker is undecided between a 25 or 50 basis point reduction. CNBC’s Jeff Cox has more on what to expect from Powell’s speech.  

Peloton soars
Peloton posted its first sales increase in nine quarters, driven by cost-cutting measures and a focus on profitability. Sales rose by 0.2% to $643.6 million during its fiscal fourth quarter. The troubled connected fitness company also narrowed its losses to $30.5 million, compared to a loss of $241.8 million a year ago. Peloton has struggled post-pandemic and is currently run by two board members since former CEO Barry McCarthy resigned earlier this year. The company’s shares shot up as much as 40% after the earnings release.  

Driverless rides
General Motors‘ Cruise has partnered with Uber to offer driverless rides to Uber users as early as next year. The move comes as Cruise attempts to revive its robotaxi venture after a serious accident last year and subsequent investigations, which led to the resignation of its CEO and co-founder. Uber abandoned its own self-driving project after a fatal 2018 incident and now collaborates with other developers like Google‘s Waymo.

Asia mixed, yen up
The Japanese yen gained 0.3% to 145.77 against the U.S. dollar as the Bank of Japan’s governor said he would press ahead with raising interest rates but warned markets remain unstable. Japan’s Nikkei 225 rose 0.4% as core inflation accelerated for the third straight month. Hong Kong’s Hang Seng index fell 0.44%, while mainland China’s CSI 300 climbed 0.28%. Alibaba Group edged up 0.55% after the Chinese tech giant said it would convert its secondary listing in Hong Kong to a primary listing a move that could attract new funds from the mainland. Elsewhere, South Korea’s Kospi and Australia’s S&P/ASX 200 were little changed.

[PRO] Gold rush
Gold prices surged to a new record high, reaching $2,531.60 per ounce on Tuesday. The precious metal is up 20% year-to-date, outperforming the S&P 500. Analysts predict further gains, driving gold mining stocks higher

The bottom line

Whether traders are working from home or in the office, at 10 a.m. ET everything will come to a halt as Fed Chair Jerome Powell delivers one of the most anticipated economic speeches of the year.

With the “vast majority” of Fed members advocating for a rate cut in September, markets are banking on a 100 basis point reduction for 2024. The expectation suggests at least one 50 basis point cut, given that there are only three rate-setting meetings left this year.

George Brown, senior U.S. economist at Schroders, believes Powell will emphasize the risks of being too aggressive with rate cuts.

“I don’t think he’s going to pre-commit to a specific easing path,” Brown told CNBC. “Instead, I think he’s going to frame it as they will be data dependent and they will let the data guide them in terms of their decisions.”

“A lot of his speech will focus on the risks of being too aggressive with rate cuts versus being too late to cut rates — and I think his comments will really focus in on trying to find that middle ground, which helps to maintain or safeguard the economic expansion while ensuring inflation remains contained.” 

Henry Allen, Deutsche Bank macro strategist, thinks the market’s rate cut forecasts for the next year are overly dovish given the current state of the economy. Markets are “pricing 200 bps of cuts in the next year alone and those are the sort of paces you only normally see during a recession, not in a non-recession.”

Despite this, the Fed has faced criticism for keeping rates high for too long, with some arguing that its heavy reliance on data could negatively impact the economy and stocks. 

“A soft landing, the probabilities are going up, and that’s why this should be a benign cutting cycle … good for markets. But I think the key is the Fed getting off data dependence, because data dependence is the reason they missed the inflation turn,” Tom Lee, Fundstrat’s head of research, told CNBC’s “Squawk Box” in an interview Thursday.

CNBC’s Jeff Cox, Fred Imbert, Gabrielle Fonrouge, Lora Kolodny, Pia Singh, Alex Harring and Spencer Kimball contributed to this report.

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What EV sales slump? Illinois’ EV sales outpace the nation by 4:1

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What EV sales slump? Illinois' EV sales outpace the nation by 4:1

Fueled by incentives from the Illinois EPA and the state’s largest utility company, new EV registrations nearly quadrupled the 12% first-quarter increase in EV registrations nationally – and there are no signs the state is slowing down.

Despite the dramatic slowdown of Tesla’s US deliveries, sales of electric vehicles overall have perked up in recent months, with Illinois’ EV adoption rate well above the Q1 uptick nationally. Crain’s Chicago Business reports that the number of new EVs registered across the state totaled 9,821 January through March, compared with “just” 6,535 EVs registered in the state during the same period in 2024.

Those numbers represent more than 50% growth in EV registrations – far beyond the expected 12% first-quarter increase nationally being projected by Cox Automotive. (!)

What’s going on in Illinois?

File:Illinois Governor J. B. Pritzker (33167937268).jpg
Illinois Governor JB Pritzker at the Chicago Auto Show; by Ray Cunningham.

While President Trump and Elmo were running for re-election, they campaigned on the threat promise of canceling the $7,500 federal tax credit for EVs. Along with California Governor Gavin Newsom, Illinois’ Governor JB Pritzker made countermoves – launching a $4,000 rebate for new electric cars and up to $1,500 for the purchase of a new electric motorcycle.

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At the same time, the state’s largest utility, ComEd, launched a $90 million EV incentive program featuring a new Point of Purchase initiative to deliver instant discounts to qualifying business and public sector customers who make the switch to electric vehicles. That program has driven a surge in Class 3-6 medium duty commercial EVs, which are eligible fro $20-30,000 in utility rebates on top of federal tax credits and other incentives (Class 1-2 EVs are eligible for up to $7,500).

We covered the launch of those incentives when the program was announced at Chicago Drives Electric last year, but the message here is simple: incentives work.

SOURCES: Chicago Business, Ray Cunningham; featured image by the author.

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XCMG launches XE215EV battery swap electric excavator ahead of bauma

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XCMG launches XE215EV battery swap electric excavator ahead of bauma

The electric construction equipment experts at XCMG just released a new, 25 ton electric crawler excavator ahead of bauma 2025 – and they have their eye on the global urban construction, mine operations, and logistical material handling markets.

Powered by a high-capacity 400 kWh lithium iron phosphate battery capable of delivering up to 8 hours of continuous operation, the XE215EV electric excavator promises uninterrupted operation at a lower cost of ownership and with even less downtime than its diesel counterparts.

XCMG is delivering on part of that reduced downtime promise with the lower maintenance and easier repair needs of electric equipment, and delivering on the rest of it with lickety-quick DC fast charging that can recharge the machine’s massive battery in 1.5-2 hours … but that’s not the slick bit. The XCMG XE125EV can be powered up without leaving the job site thanks to its BYD battery swap technology.

We first covered XCMG and its battery swap technology back in January, and covered similar battery-swap tech being developed by MOOG Construction offshoot ZQUIP, as well – but while XCMG’s battery tech has been in production for several years, it’s still not widely known about in the West (even within the industry).

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XCMG showed off its latest electric equipment at the December 2024 bauma China, including an updated version of its of its 85-ton autonomous electric mining truck that features a fully cab-less design – meaning there isn’t even a place for an operator to sit, let alone operate. And that’s too bad, because what operator wouldn’t want to experience an electric truck putting down 1070 hp more than 16,000 lb-ft of torque!?

Easy in, easy out

XCMG battery swap crane; via Etrucks New Zealand.

The best part? All of the company’s heavy equipment assets – from excavators to terminal tractors to dump trucks and wheel loaders – all use the same 400 kWh BYD battery packs, Milwaukee tool style. That means an equipment fleet can utilize x number of vehicles with a fraction of the total battery capacity and material needs of other asset brands. That’s not just a smart use of limited materials, it’s a smarter use of energy.

You can check out all the XE215EV’s specs at this tear sheet, and get an in-person look at the Chinese company’s latest electric excavator this week in Munich, Germany.

SOURCE | IMAGES: XCMG.

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Volvo shows off production PU500 battery energy storage system

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Volvo shows off production PU500 battery energy storage system

As “extreme” weather events become more commonplace, the demand for reliable and portable energy continues to rise. In response to that growing demand for dependable off-grid power, Volvo has developed the new PU500 Battery Energy Storage System (BESS) designed to take electrical power when it’s needed most.

Designed to be deployable in a number of environments at a moment’s notice, the Volvo Energy PU500 BESS is equipped with approximately 500 kWh of usable battery capacity (up to 540 kWh total). More than enough juice, in other words, to power a remote construction site, disaster response effort, or even a music festival – anything that needs access to reliable electricity beyond a grid connection.

That’s great, but what sets the PU500 apart from other battery storage solutions is its integrated 240 kW DC fast charger.

“With an integrated CCS2 charger, the PU500 is designed to work with all brands of electric equipment, trucks, and passenger cars,” says Niklas Thulin, Head of BESS Product Offer at Volvo Energy. “This ensures that no matter what type of electric vehicle or machinery you rely on, the PU500 can provide the power you need, making it a truly flexible solution for any grid constrained site or location.”

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The integrated charger in the PU500 has the impressive ability to charge a heavy equipment asset (be that an electric semi truck or something like a wheel loader) in under two hours. Its on-board capacity allows to fully recharge up to 3 electric HD trucks or 20 electric cars per day, making it an incredibly versatile disaster response asset.

Electrek’s Take

Stockholm progresses with electric construction site from Volvo CE
Electric job site; via Volvo CE.

As we often say over at The Heavy Equipment Podcast, “just because you’re working for the power company doesn’t mean you have power,” and there are hundreds of scenarios where the extra power provided by something like the new PU500 would be useful. Its ability to be palletized and easily moved or swapped out of a larger BESS array, too, just add to its flexibility.

SOURCE | IMAGES: Volvo.

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