CNBC Business News Update - Market Close: Global Stock Selloff, Dow Down 1000 Points, Google Loses Search Antitrust Case 8/5/24

Episode Date: August 5, 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 global stock sell-off. Japan tanked 13%, Europe down 2.2% here at home. At one point, the Dow was down more than 1,200 points, but it recovered a bit to close down 1,033 points. That was 2.6%. The S&P 500 index down 160 points. That was 3 percent. And the Nasdaq down 576 points. That was 3.4 percent. Major averages still in the green for

the year so far. The Nasdaq is in correction, down more than 10 percent from its recent record high. Some investors say there's no reason to believe the markets have bottomed. Watch the market, keep looking for opportunities, but don't be rushing in to buy today. Data treks Nicholas Kolas on CNBC, while others say stocks are on sale. People are going to hate to hear this, but this is pretty normal. The markets in general are heading into normalization. Now, we said nine months ago that the average correction during the second year of a bull market is 9.4%. We've been waiting for this. So, we're buyers. BMO Capital Management's Brian Belsky on CNBC.

Companies whose shares hit all-time highs on Monday include Colgate-Palmolive, CBOE Holdings, Willis Towers Watson Southern Company, and Lockheed Martin. Another bright spot, Kelanova. Its shares popped on reports it's a takeover target in talks with Mars. Kelanova, they are possibly in discussions with privately held Mars to be acquired. Can you imagine a situation where Eggo Waffles? I'm thinking this through already. Eggo Waffles.

Snickers goes with your Eggos. Oh, yes. And paired with Mars's pedigree dog foods as well. So there's all kinds of things possibly brewing. CNBC's Dominic Chu and Kelly Evans. Mars makes pet foods and, of course, famous candies like M&Ms and Snickers. Kelanova is the snack food business that was spun off from Kellogg. Google found to have illegally held a monopoly in search advertising and text advertising

in the U.S., a federal judge ruled. The landmark case brought by the Justice Department in several states said Google kept its dominance by creating barriers for competitors to ever take it on. The judge will decide the remedy, either a change in its business practices or a forced sale of a part of Google's search business. Mortgage rates dropped again on Monday, down almost a half percent now in one week. Rates took another leg lower. The average on the 30-year fix drops to 6.34 percent, according to Mortgage News Daily. It's C-O-O. Matt Graham told me lots of lenders will be quoting in the high 5 percent range. Home sales have been falling because of the hit to affordability. That is now improving just a little bit.

Compare. If you put 20% down on a $400,000 home in April using a 30-year fixed, your monthly payment was about $2,240. That's not including insurance and property taxes. Today, that monthly payment would be $1,989. More buyers would also qualify for the loan at today's lower rate. CNBC's Diana Olick. Google lost its antitrust case over search.

On Tuesday's Watch List, earnings are coming from a load of companies. Caterpillar, Uber, Yum Brands, and Outback Steakhouse parent Blumen Brands, plus Amgen, Airbnb, TripAdvisor, IAC Interactive, Instacart, Reddit, Supermicro, and Rivian. The National Transportation Safety Board holds an investigative hearing on the Boeing 737-9 MAX door plug blowout. Jessica Ettinger, CNBC. When you're at your very top speed, it feels like you can run forever. And then there's this one moment where everybody else starts to die. And you're like, I'm not about to die. I'm about to get faster. The Olympics from Paris on NBC and Peacock.