CNBC Business News Update - Market Close: Stocks Extend Friday Rally, Disney Earnings On Deck Tues am, Renters Lose Hope About Affording To Buy 5/6/24

Episode Date: May 6, 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 winning start to the week for the major averages, investors have some renewed hope for an interest rate cut at some point from the Fed. Bond yields were slightly lower as well. The Dow finished up 176 points, a half percent. The S&P 500 index up 52 points, more than one percent. The Nasdaq up 192 points, also more than 1%.

We're only 2% from the old historic highs. We're over the 50-day moving average again. So there's positive momentum in the market overall. CNBC's Bob Pisani. Companies who shares hit fresh all-time highs on Monday. Colgate-Palmolive, Carrier Global, and Goldman Sachs. Tuesday's all about Disney. The House of Mouse reports quarterly results before the opening bell. They're on a path. They're on a path. They're on a path for growth. Headed the right way. I

think so. I mean, remember, they just came out of this brutal proxy fight. And, you know, they spent the last year restructuring, or Bob Iger spent the last year restructuring or Bob Iger spent the last year restructuring and now the focus is on growth. Bank of America's Jessica Reef Ehrlich with CNBC's Joe Kernan. Starbucks shares were slightly lower Monday after former CEO Howard Schultz posted a note online saying the coffee chain needs to fix its U.S. operations. He wrote how to go about doing that. Starbucks shares have been reeling from disappointing results. The most important line in this entire thing was that, and we're talking about the current CEO, is that senior leaders, including board members, need to spend more time with those who wear the green apron.

One of their first actions should be to reinvent the mobile ordering and pay platform, which Starbucks pioneered. So right there he's saying, listen, you can't get in and out, and that apparently is what's hurting some of the loyalty. CNBC Mad Money host Jim Cramer. Robinhood says the Securities and Exchange Commission has sent in a warning of potential enforcement actions. The Wells notice means Robinhood could face action over its crypto

business. Renters' hopes of being able to buy a home have fallen to a record low. The share of those who believe that one day it'll happen fell to 13.4 percent in the latest New York Fed survey. On top of that, those asked said they expect rental costs to increase by nearly 10% over the next year. On Tuesday's watch list, earnings are coming from Disney, of course, plus Lyft, Occidental Petroleum, Reddit, Rivian Crocs, Blumenbrands, the parent of Outback Steakhouse, Nintendo, and Ferrari. We're going to get the latest on consumer credit, and Apple will hold a big iPad relaunch event. Jessica Ettinger, CNBC. Earnings season, the quarterly numbers as they break.

The scorecard for the American economy. Earnings season on CNBC.