CNBC Business News Update - Market Close: Dow Lower, Fresh All Time Highs For S&P 500, Nasdaq and Gold, Microsoft Announces A.I. PCs 5/20/24

Episode Date: May 20, 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 Tuesday morning after a mixed start to the week for stocks. JPMorgan Chase shares hit a record high right as CEO Jamie Dimon said at these levels the world's biggest bank won't be buying back shares for a while. And that sent shares lower helping to drag the Dow down. So the Dow is below 40,000. It was down 196 points, and that's a half percent. The S&P 500 index, fresh record high, up four points at 5,308. The NASDAQ up 108 points, more than a half percent, also at a fresh record high. The major averages are on pace for their best months since last November. Companies whose shares, joining JPMorgan Chase, hit fresh all-time highs on Monday include Google Parent Alphabet, Royal Caribbean Tractor Supply, American Express, and Goldman Sachs. The record highs for the indexes, that doesn't mean that's as far as

they're going to go. Indexes making new record highs are generally a feature of a strong underlying trend, trends which tend to persist. And so it's not necessarily the case when we get to a new big round number, all of a sudden you have to start raising the alarms for an imminent peak. CNBC's Mike Santoli. Gold settled at a new record for the 23rd time this year. Silver at its highest in more than 11 years. Microsoft announced new AI PCs are coming, starting at about $1,000. Target taking a page out of the McDonald's playbook, cutting prices.

Target is chasing lower price rival Walmart. Says it is going to lower prices on 5,000 frequently purchased items in its stores in a bid to both stay competitive and give consumers some much needed relief. In a statement, the retailer says the price cuts are concentrated in grocery staples like milk, as well as toiletry items like paper towels, baby wipes, and diapers. CNBC's Tyler Matheson. Red Lobster filed for Chapter 11 bankruptcy but plans to keep restaurants open while it restructures. It's the nation's largest seafood chain. It's closing dozens of underperforming locations. You know, there are 600 Red Lobers, and there is a chance that the endless shrimp deal that was not a long-term,

that was meant to be a limited time only but then got long-term, did really hurt the company. I mention that because anecdotally that's what can happen to restaurants. And it's at the beginning. CNBC Mad Money host Jim Cramer. Ivan Boski died, a Wall Street giant known for an insider trading scandal. In the early 1980s, Boski was an investment banking titan who made hundreds of millions of dollars betting on corporate takeovers,

ultimately pleading guilty to insider trading in 1986. He paid a $100 million penalty, a record at the time, also serving three years in prison. The former trader was thought to be an inspiration for the character Gordon Gekko in the movie Wall Street. Ivan Boski was 87. CNBC's Scott Wapner. Lots of retail earnings reports are coming this week, but one big tech name will report on Wednesday, and everybody's waiting for NVIDIA. You've seen NVIDIA up over 500% from January 1st, 2023. But right here, right now, I do think NVIDIA has high expectations. They've given you no reason that they're not going to

beat. In the words of the late, great Tom Petty, waiting is the hardest part. So we have big expectations for this Wednesday, and that will dictate short-term market direction. KKM's Jeff Kilburg on CNBC. On Tuesday's Watch List, we do get earnings from Lowe's, Macy's, AutoZone, and Urban Outfitters. The NFL starts its Spring League meeting in Nashville Tuesday. Owners are expected to vote on whether to let private equity firms buy stakes in their teams. Jessica Ettinger, CNBC. Wednesday, May 22nd. Join CNBC's Financial Advisor Summit.

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