CNBC Business News Update - Market Close: Stocks End Mixed, Investors Weigh Tariffs, Trump Names Fed Pick

Episode Date: August 7, 2025

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 by CNBC's Jill Schneider.

I'm Jill Schneider, CNBC. Stocks finished the day mixed after the NASDAQ pulled out a late-day turnaround. The Dow dropped 224 points. The S&P 500 lost five. The NASDAQ added 73. Investors were digesting the impact of sweeping new tariffs that have just gone into effect, targeting imports on dozens of America's trading partners,

marking a substantial escalation in ongoing trade tensions. Wharton's school professor of finance, Jeremy Siegel, says companies are learning to price in the tariffs. The earnings are really coming in so well, and the guidance is coming in really well, you know, given the upcoming tariffs. I mean, they're beginning to be able to specify how, you know, how much the tariff will cost and that quantifiable amount, I think, is doable for most firms, to say the least. Zentner of Morgan Stanley's wealth management has a different view. We don't know that we've escaped the tariff uncertainty, and we don't know if these lofty guidance that we're seeing from companies is actually something that's achievable. And so I don't think we're out of the woods there for some bibles in the equity market.

Eli Lilly shares lost 14 percent, despite the company's results beating Wall Street estimates. Investors were disappointed with trial results from the company's oral weight loss drug. But chairman and CEO, David Ricks, says the company was not disappointed. We're not disappointed with these results. It's right on thesis for us. Remember, at the beginning here, you know, when we started working on this project and when we talked about it, the goal was to create an oral pill that was convenient and can be made at huge scale, really for the mass market, and had weight loss that was

competitive with other single-acting GLP-1s. And that's what we've achieved. Remember, the first study in diabetes, probably the weight loss is a little higher than people expect it here. Maybe it's one or two points below what street had, but it's right in thesis for us. Sales Force helped drag down the Dow as the software sector was particularly weak in afternoon trading. The weakness may be tied to cybersecurity company Fortinet, implying in its forecast that a software product refresh cycle would be smaller than anticipated. President Trump says he selected Stephen Mirren, chair of the Council of Economic Advisors, to serve on the Federal Reserve

Board of Governors, replacing Adriana Coogler, who resigned. Friday. He added the search for a permanent replacement will continue. Jill Schneider, CNBC. America's TopStates for Business. Now on topstates.c.com.