CNBC Business News Update - Market Close: Stocks Higher, The S&P 500 Index And The Nasdaq Each Close At New All Time Highs, CPI Inflation For April Out Tuesday 5/11/26

Episode Date: May 11, 2026

CNBC Business News Update with Jessica Ettinger - market numbers and news featuring CNBC expert analysis and sound from top business names. Visit https://www.cnbc.com/ for more. Hosted by Simplecast, an AdsWizz company. See https://pcm.adswizz.com for information about our collection and use of personal data for advertising.

I'm Jessica Eddinger, CNBC. Wall Street opens Tuesday morning after modest gains on Monday for stocks and fresh record highs for the S&P 500 index and the NASDAQ. Let's start with the Dow. It was up 95 points on Monday. Caterpillar shares let it higher. They were up more than 3%. The S&P 500 index added 13 points. The NASDAQ was up 27 points. Companies who shares at fresh all-time highs Wednesday include Invitical. Applied Materials, AMD, Cisco, Datadog, F5 Networks, Corning, Lamb Research, and Texas instruments. A deeply bifurcated market, and it is almost now narrowing down to semis versus the rest. So you had the indexes up gently, weak breath underneath it, also oil up, also treasury yields up, also the volatility index up. So it tells you the market is maybe sort of modestly clenching up in advance of maybe we're not sure if this can be pulled any farther here in the near, term. CNBC's Mike Santoli. President Trump says the ceasefire with Iran is on life support. Iran says it will never bow to the U.S. All of this ahead of a crucial trip to China for President Trump, set to meet later this week with Iran's ally, China's President Xi. Prices at the pomp held steady from Sunday.

AAA says the national average for a gallon of regular $4.52 cents. Lazzards, Eric Van Ostrand tells CNBC, consumer spending is strong. It may be fooling investors until it doesn't anymore. I do think the market's underestimated the inflationary risk because they're focused on the aggressive excitement around consumers of the U.S. to spend. And that excitement will persist, and that's what's keeping equity market valuations higher. What I think markets are looking through is that even as relative to a month ago, the Middle East seems a little bit more calm. The inventory picture for global oil is a lot less. And consumers are going to be forced to cut their spending pretty meaningfully.

More disappointment for the spring home selling season. April sales were sluggish, but prices did hit a record high for April. Inventory in April did rise 5.8% from March is still considered tight. That kept upward pressure on prices. The median price of a home sold in April, $417,700, up 0.9% from a year ago, but still the highest April price on record. B.C.'s Diana Olik. Investors are bracing for inflation to take another step in the wrong direction in the April CPI. The Consumer Price Index will be out Tuesday morning. The consensus for its CPI puts headline inflation at 38. Core inflation better contained at 27.

CNBC's senior economics reporter Steve Leesman. President Trump's National Economic Director Kevin Hassett told CNBC's Joe Kernan that Americans have seen some prices go down since Trump took office. It is up from where it was when Biden left office. It's higher right now, and the president promised to tackle affordability. The bottom line is inflation is going down at the microeconomic level by a million things that we've done, like, you know, fix the avian flu, so egg prices are down, you know, change beef imports so that beef prices go down, make drug prices more affordable with Trump RX and so on. But at the macroeconomic level, the driving force right now is the temporary increase. of the price of gas. On Tuesday's watch list, we do get the latest on inflation, and practice sessions

begin for the Indy 500, which is a week from Sunday. Jessica Edringer, CNBC. We've never had people in a more gambling mood than now, but that doesn't mean that investing is terrible. CNBC.