CNBC Business News Update - Market Close: S&P 500 Index and Nasdaq Close at Record Highs, Fed Holds Rates Steady, Inflation Cooler Than Expected 6/12/24

Episode Date: June 12, 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 Ettinger, CNBC. Wall Street opens Thursday morning after a cooler inflation report. The Fed held interest rates steady and records were set. The Dow was down 35 points. The S&P 500 index, however, set a record up 45 points, eight-tenths of a percent, closing above 5,400 for the very first time. The Nasdaq also closed at a record high. It was up 264 points. That was one and a half percent. Companies whose shares hit

fresh all-time highs on Wednesday include Google Parent Alphabet, Apple, and Microsoft, plus Micron, HCA, Boston Scientific, Royal Caribbean, and Costco. The Fed left interest rates alone, and it's signaling one rate cut might be coming this year. And some investors say that's fine. Stability and a Fed on hold, this is great for technology. It's great for companies that are growing. And it really does, I think, give the market some reason to continue to love what it's loved since that payroll number, which says the job market's balancing, but it's not falling apart.

Seymour Asset Management's Tim Seymour on CNBC. The CPI Consumer Price Index showed a 3.3% rate of inflation in May. That was better than expected. Consumer prices continue to ease. The internals on this, whether it's gas prices, core goods, insurance. Oh, my insurance finally broke. You know, you drive your car to work, and gasoline is front and center, and property cash, but also auto. Now, I thought the most interesting one was on page 17.

All items less shelter, minus 0.2. There you go. So it's shelter sticky, and everything else is coming down. CNBC Mad Money host Jim Cramer with CNBC's Carl Quintanilla. Mortgage demand surged last week during a brief tick lower in mortgage rates. Mortgage rates dropped for much of last week, causing demand to surge nearly 16 percent compared with the previous week. That, according to the Mortgage Bankers Association. But after a stronger than expected monthly employment report Friday, rates jumped back up again.

Homebuyers are not only contending with high interest rates, but also high home prices. CNBC's Diana Olick, the average rate on Wednesday on a 30-year fixed home loan, 7.1%, according to Mortgage News Daily. Big oil got a big warning from the International Energy Administration. The world will be producing more oil than it needs in just the next six years. Too much capacity is just going to be sitting there. A U.S.-led surge in global oil production is expected to outstrip demand growth by the end of the decade. It says that that will push spare capacity to unprecedented levels and potentially upend OPEC's market management. The IEA issuing a warning to big oil companies, urging them to make sure that their

business strategies are prepared for a supply surplus. The big oil companies that I think they have been diversifying to some extent already. CNBC's Becky Quick. Sony Pictures buying Alamo Drafthouse, becoming the first movie studio in 75 years to own a theater chain. On Thursday's watch list, we get the latest on inflation at the wholesale level with the PPI, producer price index. Tesla shareholders will be voting on the $56 billion pay package for Elon Musk. Earnings are coming from RH,

the former restoration hardware, plus Adobe. We find out how many people applied for unemployment benefits last week. Golf's U.S. Open begins with round one at Pinehurst in North Carolina. Stanley Cup Finals game three on Thursday. Oilers host the Panthers in Edmonton. Jessica Ettinger, CNBC. The Olympic Games are coming, but first, the best American athletes have to make Team USA. The U.S. Olympic Team Trials on NBC and Peacock.