CNBC Business News Update - Market Close: Stocks Higher, S&P 500 Index Closes At New Record, New Home Construction Dropped Last Month 2/19/25

Episode Date: February 19, 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 Edinger, CNBC. Wall Street opens Thursday morning after modest gains for stocks and a fresh record high close for the S&P 500 index. Let's start with the Dow. It was up 71 points, led higher by shares of Merck, up more than 2.5%. The S&P 500 index up 14 points, the NASDAQ was up almost 15 points. Stocks spent much of Wednesday in the red. The markets are effectively paralyzed at the moment by policy uncertainty and so news in one direction or the other, I think we should expect that volatility.

MetLife's Lauren Goodwin on CNBC. Companies who shares hit fresh all-time highs on Wednesday include Ticketmaster Parent Live Nation, Visa, Palo Alto Networks, and Tractor Maker Deere. Apple unveiled its new cheaper low-end iPhone 16e on Wednesday. It says it's powerful enough to run AI. It'll be on sale later this month for just $599. It doesn't have the fancy camera other models have. Microsoft unveiled its first quantum computing chip, the Majorana One. UnitedHealthcare offering buyouts to employees in its benefits unit, and the company could start slashing jobs. The homebuilders are facing headwinds when it comes to supplying the U.S. with new construction homes, as the country needs an estimated 8 million of them,

both single family and apartments. Now, tariffs on lumber and appliances can hurt, as well as the crackdown on immigration. Labor is tight, right? We're looking at an industry that is probably three to four hundred thousand folks sort of where it needs to be. On top of that, about 30 percent are immigrants. The percentage of illegal immigrants is not entirely clear, but it's something that we need to keep an eye on as well. So labor, land have really been the biggest pinch points of the builders being able to satisfy that lack of supply. UBS's John Lovallo on CNBC. And in January, the home builders started construction on fewer homes. Single family starts. We did see a steep drop of 8.4 percent month to month. Sentiment dropped dramatically to a five month low. And that was mostly on concerns over tariffs.

The NHB survey showed that that future sales expectations, it dropped the most, down 13 points. So that's why you're seeing the drop in starts and the drop in building permits, which are, of course, an indicator of future construction. Just builders pulling back because they're concerned about affordability, they're concerned about potential tariffs, and it's labor because such a large part of the labor market

in home construction is from immigrants. CNBC's Diana Olick. concerned about potential tariffs and it's labor because such a large part of the labor market in home construction is from immigrants. CNBC's Diana Olick. The San Francisco 49ers exploring the sale of a 10% minority stake in the team. A number of pro sports team owners have taken cash off the table by selling small stakes in their teams. Teen and tween girls clothing chain Forever 21 in talks with liquidators hinting it's struggling to find a buyer. Burrito season just around the corner for Chipotle. It's using an AI chat bot it calls Avocado to help hire 20,000 workers this spring. But when you ask it what the salary or hourly pay will be, it will not tell you. On Thursday's watch list, earnings are coming from Walmart, plus Hasbro, Shake Shack, TripAdvisor,

Birkenstock, Wayfair, Ticketmaster, ParentLive, Nation, and Rivian. We find out how many people applied for unemployment benefits last week, and Major League Baseball spring training games officially begin. Dodgers and Cubs open the Cactus League in Glendale, Arizona. Jessica Ettinger, CNBC. CNBC, live ambitiously.