CNBC Business News Update - Market Close: Dow Closes Above 40,000 For The First Time, UAW Loses Mercedes Benz Effort, Frontier Gets Rid of Change Fees 5/17/24

Episode Date: May 17, 2024

Taylor Swift's UK tour stops are estimated to boost the UK economy by almost one billion pounds according to a new report from British bank Barclays, as reported by the Hollywood Reporter. That's about one and a quarter Billion US dollars.

I'm Jessica Edinger, CNBC. Wall Street opens Monday morning with the Dow above 40,000 for the very first time after Friday's record close and record-setting week. It was a winning week at that for the major averages, which are on pace for their best month since last November. On Friday, the S&P 500 index closed above 5,300. Here are Friday's numbers. The Dow was up 134 points, three-tenths of a percent, closing at 40,003.

The S&P 500 index was up six points, and the NASDAQ was in the red. It was down 12 points. Companies whose shares hit fresh all-time highs on Friday include Walmart and Google parent Alphabet. You know, the last week or two have shown that the don't overthink it rule still lies with the bulls in terms of giving credit to new highs, which is more bullish on a forward-going basis than worrisome. CNBC's Mike Santoli. The last week has been great for stocks, but what about the last six months for investors?

Investors striking gold, so to speak, all over the place. Investors have rarely had it this good. To show you what we've done over the last six months, I mean, S&P is up 17%, as is the Russell, the Dow good for 14%. Far from just that, copper 34%. If you've been invested around that, made a lot of money. As with silver and gold, you know, Bitcoin, of course, has rallied back up 82%. CNBC's Scott Wapner. Mercedes-Benz workers at two plants in Alabama have rejected the United Auto Workers Union. The effort to unionize was fiercely opposed by Alabama's elected leaders. It is a setback in the union's drive to organize plants in the historically non-union South.

Cracker Barrel Old Country Store shares tanked 13 percent Friday. Cracker Barrel is slashing its dividend by around 80 percent as the chain plans to invest hundreds of millions of dollars into overhauling its restaurants and updating its brand. The company also updated its forecast saying that it expects earnings next year to be flat or down slightly before increasing in 2026 and 2027. CNBC's Becky Quick. Amgen's treatment for the most deadly form of lung cancer has been approved by the FDA. Imdeltra can be used as a second or later line treatment for adults with advanced small cell lung cancer. Frontier Airlines getting rid of change fees as it overhauls pricing. One of its rivals, Southwest, never charges anyone to change a flight.

Boeing shareholders re-elected the CEO, David Calhoun, to the board, although he is stepping down from the company top job at the end of the year. New in theaters, Paramount's If with Ryan Reynolds, Lionsgate's horror film The Strangers, and Focus Features' Amy Winehouse biopic Back to Black. On the coming week's watch list, it'll be a big deal for earnings in the coming week from retailers Macy's, Lowe's, Target, TJ Maxx, and Marshall's parent TJX, companies Petco, BJ's Wholesale, and more. Investors also waiting for a big report from chipmaker NVIDIA. That comes Wednesday when it reports quarterly results.

Jessica Ettinger, CNBC. Working at CNBC is a blast. We're all about tackling this incredibly difficult thing, which is understanding markets, understanding the economy. The ambition is the fuel that feeds that. Business is an amazing way to view the world.