CNBC Business News Update - Market Close: Stocks Higher, Nvidia Up 8%, Starbucks Reports 4th Straight Quarterly Drop In Same Store Sales 1/28/25

Episode Date: January 28, 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 Jessica Ettinger.

I'm Jessica Evinger, CNBC, a rocky but positive Tuesday on Wall Street with the markets finishing higher after the deep seek sell off on Monday. On Tuesday, the Dow was up 136 points, led higher by shares of Nvidia, which bounced up almost 9%. The S&P 500 index was up 55 points, almost one percent. The Nasdaq, with a nice showing up 391 points, that was more than two percent. Companies whose shares hit fresh all-time highs on Tuesday include Amazon, Walmart, Facebook parent Meta, JPMorgan Chase, Visa and MasterCard, 3M, Live Nation, Royal Caribbean, and tractor maker Deere. Apple, NVIDIA, Microsoft powering things today. Bigger picture, it tells you the market sort of repairs and rebalances itself when it can. CNBC's Mike Santoli. Over the weekend, Chinese AI company DeepSeek revealed a faster, cheaper artificial intelligence model,

and a lot of U.S. investors are skeptical. What China is really good at is A, lying, and B, introducing things into our market way below real cost. Have you looked at deep seeks, terms and conditions? They read just like TikToks. When you accept their terms and conditions, you accept their ability to come into your phone or into your computer and look at all of your chats, all of your keystrokes, the manner in which you operate your passwords. You give them permission to do all of that. It's another digital Trojan horse. It's a real problem. That's Hayman Capital's Kyle Bass on CNBC. The White House is scrambling after shutting off Medicaid funding as part of a widespread funding freeze on Tuesday. Some individual lawmakers in states, including Florida and Connecticut, are out there saying on social media that Medicaid programs

in their states and systems have been shut down. So a lot of confusion out there on Medicaid and a lot of discussion still about whether that type of aid will be frozen. CNBC's Megan Casella in Washington. Novo Nordisk's Ozempic approved for another use by the FDA to help treat chronic kidney disease in those with diabetes. JetBlue lost a quarter of its value on Tuesday on a weaker outlook for the current quarter. We're a leisure airline, a lot of trough weeks in the quarter, and that's what we're seeing.

When you adjust for Easter, we look forward to seeing improvements. We've got even more space launching today. We've got a preferred credit card launching in February. So we're on track for what we committed to do. JetBlue CEO Joanna Garrity on CNBC. Starbucks out with quarterly results. Earnings beat estimates, but same store sales dropped for a fourth straight quarter. On Wednesday's watch list, we get a Fed announcement on the direction of interest rates. Earnings are coming from Facebook parent Meta, Microsoft, T-Mobile, Corning, IBM, Tesla, Whirlpool, and Waste Management. Secretary of State Rubio is set to meet with his Canadian counterpart ahead of Saturday's tariff deadline. The Lunar New Year begins the year of the snake.

Markets are closed in China. Jessica Ettinger, CNBC. Earnings season, the quarterly numbers as they break. The scorecard for the American economy. Earnings season on CNBC.