CNBC Business News Update - Market Close: Market Rally Fades And Stocks End Lower, Disney Down 4% Dragging the Dow, Amgen Lower 8/7/24

Episode Date: August 7, 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 a pop and then a drop for stocks. The morning rally fizzled on Wednesday. The Dow fell 234 points, about a half a percent. The S&P 500 index down 40 points, three quarters of a percent. The Nasdaq was down 171 points. That was one percent. Price action is a little disappointing, but it's understandable.

And I think we're going to be in no man's land for a while because I think the market traded so high. I mean, if you remember, the S&P has been up 38% to its high from October last year. DB8 Capitals, Barbara Duran on CNBC. Dow component Disney, its shares were down four percent on some weakness at Disney World and other theme parks in the quarter Disney dragged the Dow lower Disney is planning a streaming service password sharing crackdown next month and then it'll raise prices on ESPN plus Hulu and Disney plus in October those services though turned in their first profit in the quarter and with Hulu and Disney plus the company's CFO tells CNBC they can raise prices, no problem.

People tend to focus on price. But remember, value is what the consumer receives. Price is what the consumer pays. We had the three biggest films, the biggest film in May, biggest film in June, and biggest film in July in total. And the value that we're putting into the streaming service with our IP right now, with Inside Out 2 coming and with all the great TV shows like The Bear and Abbott Elementary and Shogun, we feel like we're earning pricing. And as a result, we can take that pricing. Disney's chief financial officer, Hugh Johnston. Airbnb shares down 14% on weakness, helping to drag the S&P 500 index lower. What led the S&P lower was Amgen, the drug maker's shares down 6% after hitting fresh record highs just recently. Wells Fargo

says Amgen's new weight loss pill, not yet approved, has already been priced in. Companies whose shares hit fresh all-time highs on Wednesday include T-Mobile, Procter & Gamble, GoDaddy, Aramark, and Welltower. Warner Bros. Discovery shares were down 7% in after-hours trading. It added streaming subscribers in the quarter. Other results were disappointing, though. Robinhood shares ticked lower after hours, but it beat estimates for quarterly revenue. The CEO of America's biggest bank, BuyAssets, says he's not worried about America in general,

or consumers, or market plunges like the one that happened Monday. You know, America's alive and well. There's entrepreneurs everywhere. People are optimistic. They're growing. They're expanding. While society has problems, it's quite uplifting. You know, markets fluctuate.

I think people overreact a little bit to the daily fluctuation of the market, and sometimes it's for good reasons, sometimes it's virtually no reason. J.P. Morgan chases Jamie Dimon on CNBC. He's on his annual All-America bus tour, checking in on his employees and regular Americans, and gave an exclusive interview to CNBC. On Thursday's watch list, we get earnings from Eli Lilly, Under Armour, Krispy Kreme, Papa John's, Expedia, and Paramount Global. We find out how many people applied for unemployment benefits last week. Boeing has a new CEO. Disney's D23 Expo fan event starts in Anaheim, California, and NOAA issues an updated forecast for the Atlantic hurricane season. Jessica Ettinger, CNBC. I just love this game. So excited to share with the world.

The Olympics from Paris on NBC and Peacock.