Traders work on the floor of the New York Stock Exchange during afternoon trading on July 18, 2023 in New York City.
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This report is from today’s CNBC Daily Open, our new, 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
More mixed markets U.S. stocks closed Friday mixed. The Nasdaq Composite was the only major index to fall. The pan-European Stoxx 600 rose 0.3%, with household goods adding 1.2% to lead gains — possibly aided by the news that U.K. retail sales in June rose 0.7% month over month, higher than the 0.2% estimate.
Bye China, buy Tesla Cathie Wood’s Ark Innovation ETF has completely exited stocks that generate revenue from China, the famed tech investor revealed Thursday. That means shares like Tencent and KE Holdings are out — and the fund’s holdings of Wood’s favorite bets like Tesla, Coinbase and Roku are further consolidated. Wood might be on to something: ARKK is up more than 50% this year.
Booming U.S. economy? Morgan Stanley has made a “sizeable upward revision” to its estimates for the U.S. economy. The bank expects GDP to grow 1.9% for the first half of this year, almost four times the original forecast of 0.5%. For the second half, the bank thinks GDP will grow 1.3%, compared with 0.6%. Joe Biden’s Infrastructure Investment and Jobs Act is “driving a boom in large-scale infrastructure,” wrote Ellen Zentner, chief U.S. economist for Morgan Stanley.
Demand for oil Oil prices might spike in the second half of the year as supply fails to keep up with demand, Secretary General of the International Energy Forum Joseph McMonigle told CNBC. “India and China combined will make up 2 million barrels a day of demand pick-up in the second half of this year,” he said. However, McMonigle thinks OPEC+ will respond to a “big supply-imbalance.”
[PRO] Fully packed week This week’s packed full of economic data releases and earnings reports, and will see the Federal Reserve meet to decide on the path of U.S. interest rates. CNBC Pro’s Sarah Min breaks down what analysts are expecting and how they are positioning their portfolios to deal with the heavy week.
First, the numbers. The S&P and the Dow were essentially flat, while the Nasdaq Composite lost 0.22% Friday. (Technically, the Dow squeezed out a 0.01% gain to give it a 10-day winning streak, but that figure’s so negligible I don’t think it’s worth making a big fuss over it.)
On a weekly basis, the S&P advanced 0.79%, the Nasdaq fell 0.57% — but the Dow gained an impressive 2.08%.
A large part of the Dow’s showing was because of how the index is composed and calculated. It includes just 30 stocks, ostensibly chosen to represent the broader U.S. economy. To give an example, Goldman Sachs and JPMorgan Chase represent banks; Apple and Microsoft show up for technology; Nike and Procter & Gamble stand in for consumer goods.
The Dow’s other key difference from the S&P and Nasdaq is that it is price-weighted, that is, the more expensive the stock, the bigger its influence on the index. Conversely, the other two major indexes are capitalization-weighted, meaning that the higher the total value of the company’s total shares, the more sway it has in moving the index.
Now, let’s look at Friday’s stock movements.
Nvidia slumped 2.66%. It has a market capitalization of over $1 trillion. Unsurprising, then, that it had the biggest negative impact on both the S&P and Nasdaq. The Dow? The index doesn’t even include Nvidia, so it was spared.
The Dow, on the other hand, benefited from gains in firms like UnitedHealth and Goldman Sachs. Their stock prices are high — around $500 and $350 per share, respectively — but their total market capitalizations are comparatively low. Those gains wouldn’t register much on the S&P and Nasdaq, but boosted the Dow.
What does this all mean? Honestly speaking: Not much. According to CNBC’s calculations, over the past 15 years, the Dow and the S&P have moved in the same direction 94% of the time. So while it’s true the major indexes have diverged as of late — this week aside, the Nasdaq is leading by a 34% increase for the year, the S&P 18% and the Dow a meagre 6% — in the long run, it shouldn’t really matter what index you’re tracking. The lesson here? Don’t take short-term blips as long-term trends.
After years of waiting and many falsestarts, Formula E is finally going to debut its mid-race charging system, which will give cars a quick boost of energy charging at a rate much faster than current road cars can.
For years now, we’ve been hearing about FIA plans to introduce charging stops to electric racing.
In gas car racing, some series allow mid-race fueling and some don’t. The World Endurance Championship, which runs the 24 Hours of Le Mans, obviously needs to fill up several times during the race. But Formula 1, which hosts shorter races, eliminated mid-race fueling in 2010.
But the FIA already had one electric racing series, Formula E, which had debuted in 2014. At the time, each driver had two cars, and would swap mid-race to a fresh car with new batteries.
Battery-swapping had been considered, but it would be too complicated to set up at temporary race facilities in city downtown areas, as many Formula E tracks are.
Then, in 2018, Formula E debuted a new “Gen 2” car which had a big enough battery not to need a charge mid-race, and later a “Gen 3” car in 2022, which had much stronger regenerative braking, capable of 600kW of braking power. Gen 3 also has an “Attack Mode” feature that lets cars unlock additional power for a short period each race, adding to strategy and mixing up the race order.
The issues involved building the charging system in temporary facilities and ensuring safety of the system (and of pit stops in general, which is always a concern when cars are driving rapidly near people). But after winter testing prior to this season, Formula E now says the system is ready to go.
So, once again, Formula E is ready to announce that mid-race charging is definitely, totally, positively, 100% certain at the upcoming Jeddah E-Prix, on February 14-15 in Jeddah, Saudi Arabia.
Formula E thinks that proving this high-power charging technology could help road cars to charge more quickly, which could have myriad benefits for electric cars in general.
The series is calling the system “Pit Boost,” and it will consist of a 34-second pit stop that provides around 10% additional charge to the cars (about 4kWh). While 10% isn’t a lot, 34 seconds is also not a lot of time. For comparison, one of the fastest-charging cars out there, the Ioniq 5, can charge from 10-80% in 18 minutes, which means 10% charge takes 2.5 minutes – five times as long as Formula E cars will manage the feat.
The stop will be mandatory for all drivers to take at some point in the race, and will mean new strategy options for drivers. Taking the stop means getting more energy, which means that your car won’t have to do as much energy saving to get to the end of the race – but it also means giving up your position on track, which can be hard to get back if you do it late in the race.
However, we’ve never seen it happen before, so it will be interesting to see what kind of strategic options develop.
If you’re interested in seeing how it turns out, tune in to the Jeddah E-Prix on February 14-15 to see what happens. It’s a doubleheader race weekend, with night races both on Saturday and Sunday, February 14-15, at 5pm UTC, 9am PST, 12pm EST, and 8pm local time. You can check out how to watch the race in your area by going to Formula E’s “Ways to Watch” section. In the US, Roku should be the most reliable way to watch.
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JackRabbit, the maker of pint-sized electric microbikes, is back with a new product designed to quickly recharge their batteries from pure, uncut photons mainlined into an e-bike directly from the sun. In true independent charging form, the Solar Charging Kit from JackRabbit keeps riders rolling even when there’s not a convenient AC outlet in sight.
Unveiled this week, the Solar Charging Kit consists of a single folding solar panel and a tiny voltage converter that is configured to output 42.0V, which is the exact voltage required by JackRabbit’s little e-bike batteries. There’s also an added USB-A and a USB-C charging port for powering other devices in addition to charging JackRabbit batteries.
“This Solar Charging Kit plugs directly into your bike,” explained the company, “letting you recharge without needing an outlet, but with a speed comparable to the charger that comes with the OG/OG2 (42V, 2A).”
That would mean the panel outputs around 80W of solar power, which the company says can recharge its batteries in just three hours. That fairly quick recharging speed is helped by the fact that JackRabbit’s batteries are a mere 151 Wh, or around a third of the size of most e-bike batteries.
If that sounds small, then you’re right – it is. But JackRabbit is all about going micro, offering barely 25 lb rideables that are easy to store and bring on adventures, even when they aren’t actually being ridden.
With small batteries that fit under the 160Wh limit for many airlines in the US, the batteries can be quickly charged and taken to the widest number of locations. And for riders that want to go further than a single 10-mile (16-km) battery will allow, extra batteries are small enough to fit a pants pocket. The company also offers much larger Rangebuster batteries, though they won’t pass by TSA and make it onto an airplane in your personal item.
It sounds like the Solar Chargking Kit should be able to charge up JackRabbit’s large RangeBuster batteries, though likely in more than three hours.
The $349 Solar Charging Kit is a bit pricier than building something similar yourself, but it’s also safer and more convenient than hacking together your own battery charger since it’s designed to work with JackRabbit’s batteries right out of the box.
Technically it’s only inteded for JackRabbit’s micro e-bikes (themselves technically seated scooters, even if they look and feel more like a typical bike), but it’d probably work for just about any 36V e-bike that requires 42.0V to charge.
This isn’t the first time we’ve seen solar charging kits for electric bikes, and it’s a trend that is certainly appreciated by outdoors and camping enthusiasts, festival goers, or anyone who finds themself and their bike spending extended periods in the great, sunny outdoors.
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On today’s episode of Quick Charge, Polestar hopes to steal customers from Tesla now that Elon is involved in politics, CATL revenue dips for the first time ever, and a whole new way to feed the orcas drops down under.
As above, Polestar is hoping Elon’s descent into politics spells opportunity for the struggling Swedish/Chinese performance brand, CATL has big news in Europe, and Scooter Doll shows off a new electric submarine that’s so expensive, they won’t even tell us the price.
New episodes of Quick Charge are recorded, usually, Monday through Thursday (and sometimes Sunday). We’ll be posting bonus audio content from time to time as well, so be sure to follow and subscribe so you don’t miss a minute of Electrek’s high-voltage daily news.
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