CNBC Business News Update - Market Close: Stocks Higher, Dow Closes At Fresh Record, Gun Stocks Soar, Royal Carribean Offers More 3 & 4 Day Cruises 7/15/24

Episode Date: July 15, 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 with the Dow opening at a fresh record high. On Monday, the S&P 500 index hit an intraday high. The Dow was up 210 points, a half a percent, closing at 40,211. The S&P 500 index up 15 points. The NASDAQ was up 74 points. The trends are all strong. Strong first halves tend to be followed by strong second halves. The average up year in the S&P is over 20%. We're not quite there yet. CNBC's Mike Santoli. Companies whose shares hit fresh all-time highs on Monday include Hilton, Royal Caribbean, Goldman Sachs, Eli Lilly, and Apple. Some traders believe the headlines will boost the short-term so-called Trump trade. The former president, if elected,

has some investors expecting inflation to go up because of the former president's tariffs on imports he's proposed, and the deficit would grow as spending on defense would be higher than under Biden. But a Biden trade or a Trump trade is not that simple and doesn't work for investors really, says one policy expert. Congress is as important or more important than the president in setting policy. So all this business about Trump baskets and Biden baskets alone doesn't really cut it. In a split Congress, what you're going to have is an increase in defense. It'll be a little more pronounced on Trump's side. Unless there is one-party Republican control in Washington, top to bottom, what you're going to have is a situation where the tax cuts in 2025 expire, and investors can play that as well. Pangea Policy Advisors Terry Haynes on CNBC.

After the failed assassination attempt on former President Trump over the weekend, gun stocks were soaring on Monday. Shares of Smith & Wesson up 11 percent. Sturm Ruger up almost 6 percent. Fed Chair Jay Powell reiterated Monday that the Federal Reserve is becoming more convinced that inflation now at about two and a half percent is headed down to the two percent target. And because of the lag effect, interest rates will have to be cut before inflation actually hits two percent. When we change interest rates, that tightens financial conditions and that in turn affects economic outcomes, you know, growth, labor markets and ultimately inflation. But with lags that can be long and variable, as Milton Friedman famously said.

And the implication of that is that if you wait until inflation gets all the way down to 2%, you've probably waited too long. Powell spoke at the Economic Club of Washington. Rite Aid confirmed a data breach compromising some of its customers' personal data, like names, birthd birth dates and driver's license numbers utopia of the seas is now the world's second largest cruise ship royal caribbean debuting it this week from florida's port canaveral to sail on shorter voyages just three and four days over half of our guests are actually millennials or younger. About 42% of them say in the next 12 months

their plans are to actually go on shorter vacation experiences. Royal Caribbean CEO Jason Liberty on CNBC. Utopia holds more than 5,600 passengers with five pools, 21 restaurants, two casinos, and an ice skating rink. On Tuesday's Watchlist, earnings are coming from Bank of America, Morgan Stanley, Charles Schwab, J.B. Hunt Transport, and UnitedHealth. We get the latest on retail sales. Amazon's Prime Day two-day sale begins Tuesday.

Jessica Ettinger, CNBC. I think track and field is really special and unique in that you get out exactly what you put into it. When I am in the blocks, it's a really intense time, and then I just feel like I'm flying. The Olympics from Paris starts July 26th on NBC and Peacock.