CNBC Business News Update - Market Close: Stocks Higher, S&P 500 and Nasdaq Close At New Records, Planes To Europe Are Full 7/5/24

Episode Date: July 5, 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 Evinger, CNBC. Wall Street opens Monday morning after Friday's full trading session between the holiday and the weekend with the S&P 500 index and the Nasdaq. Hitting fresh all-time highs. The Dow was also in the green, up 67 points on Friday. The S&P 500 index up 30. The Nasdaq soared 164 points. We've had a huge rally. These markets are high and sooner or later we're going to have a significant correction and what I know about previous

corrections is when you're in a correction you don't want to be in the most expensive stuff. I think it's a time when people need to be very careful about diversifying their exposure and not being overexposed to the most expensive names. JPMorgan's David Kelly on CNBC. Companies whose shares hit fresh record highs on Friday include Google, Parent Alphabet, Facebook, Parent Meta, Amazon, Apple, Oracle, Costco, and Walmart. Tesla coming off its best week in more than a year. In one week, shares soared 27%, but Tesla shares are up just 1% so far for the year. The U.S. added more jobs in June than expected, 206,000, a sign of continued economic strength. The unemployment rate ticked higher, up to a still very low 4.1%.

74% of the jobs came from government and health care and education. It's not the federal government. A lot of it is local government jobs. They seem to be still hiring in those municipalities. The hospital's up 22,000. So that's where a lot of the job growth is coming from. CNBC senior economics reporter Steve Leisman. And the data show that overall the U.S. economy is slowing. Across the board jobs, initial claims are up. jolts were weak, ADP weak. So non-farm payrolls today with the revisions I thought was very soft. Not a surprise based on

all the other data points that I just mentioned. But we're seeing a slowdown in the economy and that's helping inflation. But we better not slow anymore because then we're going to be in real problem territory. Hightower's Stephanie Link on CNBC. Some consumers still complaining that inflation is too high, but lots of people are just opening their wallets to travel. Flights from the U.S. to Europe are full. The demand story still remains strong. We had the latest data from MasterCard, which shows travelers' intentions to go overseas remains high, helped in part by lower airfare. The May inflation report did show that

airfare prices dropped by 6% year over year. And then there's those major events this summer driving interest to Europe, from Taylor Swift's Eros Tour, the EuroCup, to the Paris Olympics. CNBC's Seema Modi. Insurance companies assessing the damage from barrel as it ripped through the Caribbean and slammed some of Mexico's top beaches near Cozumel and Cancun. Parents plan to spend about 22 percent more this year on back-to-school shopping. Retail Dive cites a JLL survey showing that Walmart, Target and Amazon continue to dominate the top list of places parents are going to shop. Parents are shelling out a total of $475 per child this year. On the coming week's watch list, economic data include the big June inflation report, the CPI Consumer Price Index. That'll be out Thursday. Friday, earnings season begins.

Quarterly results coming from big banks like JPMorgan Chase and Citigroup. And retail promotions are starting ahead of the Amazon Prime Day sale on July 16th and 17th. In the coming week, both Target and Walmart have their special sales. Jessica Ettinger, CNBC. When you're at your very top speed, it feels like you can run forever. And then there's this one moment where everybody else starts to die. And you're like, I'm not about to die. I'm about to get faster. The Olympics from Paris starts July 26 on NBC and Peacock.