CNBC Business News Update - Market Close: Bond Yields Higher, Stocks Lower, Salesforce Tanks After Hours, Affordable Jeep EV Coming 5/29/24

Episode Date: May 29, 2024

From Wall Street to Main Street, the latest on the markets and what it means for your money. Updated regularly on weekdays, featuring CNBC expert analysis and sound from top business newsmakers. Anchored and reported by CNBC's Jessica Ettinger.

I'm Jessica Edinger, CNBC. Wall Street opens Thursday morning after bond yields rose, pushing stocks lower. The Dow fell 411 points, 1%. The S&P 500 index down 39 points, 3 quarters of a percent. And the Nasdaq down 99 points on Wednesday. That was about a half a percent. This is just deleveraging.

It's classic. It's highly technical. I think it's very about a half a percent. This is just deleveraging. It's classic. It's highly technical. I think it's very much a technical pullback. It's something that should be talked about a lot more, but it's not. And, you know, the average retail investor is left wondering what happened. Fitzgerald Group's Keith Fitzgerald on CNBC. Companies whose shares hit all-time highs on Wednesday include T-Mobile, Decker's Outdoors, DaVita, and NVIDIA. Salesforce out with disappointing quarterly results after the closing bell on Wednesday. Shares plunged 16% in after-hours trading on a revenue miss and a weak forecast at the company. American Airlines shares tumbled 15% after it cut capacity growth for the second half of the year.

It's cutting its revenue and profit forecast and parting ways with its chief commercial officer. Pressure had been mounting on Americans' leadership team after more upbeat results from rivals Delta and United. This is a pretty big miss on the revenue. You know, Americans just a month ago was guiding for really strong, maybe not strong, but not this bad, for their unit revenue growth and to come out and essentially double what the unit revenue decline is going to be year over year. That's kind of not what we're seeing from other major airlines. So there is kind of a divergence there and investors are trying to parse this today. CNBC's Leslie Josephs, a $25,000 Jeep EV, could it be possible? The Stellantis CEO says it's coming to the U.S. very soon.

The all-electric Jeep Avenger is already on sale in Europe. It's considered affordable. Cadillac with a new, what it calls entry-level, optic EV coming, starting at $54,000. That's entry-level for Cadillac. Starbucks shares down three quarters of a percent on Wednesday after a report that claimed customers can wait 40 minutes for a drink. Chatter about understaffing? Yeah, and this Bloomberg article about the waiting times and

it's suboptimal. It's a sub suboptimal situation people waiting 40 minutes for starbucks coffee see now you can beat that totally opposite you can say that coffee's so darn good has the stock bottomed at this point though after that quarter and what happened it's trying to bottom cnbc's jim kramer david faber and carl quintanilla abercrombie and fitch a hot brand again posting its strongest first quarter ever as sales jumped 22%. Walgreens joining Target, announcing price cuts on more than 1,000 items in the stores. U.S. consumers still want to travel and airports are on pace to be very crowded this summer. This question keeps coming up.

Are we seeing a crack in consumer demand? That is not being borne out by the statistics. The busiest day the TSA has ever seen was last week. They expect to cross over 3 million daily passengers sometime in the next month or two, depending on where we are, maybe the 4th of July weekend. The demand is still there. Now, there may be some softness in terms of fares, but the demand is still there in terms of travel. CNBC's Phil LeBeau. On Thursday's watch list, more earnings from Best Buy, Burlington, Dollar General, Foot Locker,

Kohl's, Costco, Dell, Gap, Nordstrom, and Ulta Beauty. We get the latest on U.S. economic growth with GDP, gross domestic product numbers. We also find out how many people applied for unemployment benefits last week. Jessica Ettinger, CNBC. I just love this game. So excited to share with the world. The Olympics from Paris starts July 26th on NBC and Peacock.