CNBC Business News Update - Market Close: Stocks Higher, Trump Announces Sweeping Tariffs on Mexico & Canada Start This Saturday, PCE Inflation Data Comes Friday 1/30/25

Episode Date: January 30, 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. It was a volatile day on Wall Street on Thursday. Investors spooked about sweeping tariffs being slapped by the U.S. on everything coming into the country from Mexico and Canada. And the Dow gave up a nearly 300-point gain when President Trump talked about tariffs. The Dow finished the day up 168. That was almost four-tenths of a percent led higher by shares of IBM, which soared up almost 13 percent on strong quarterly results.

The S&P 500 index up 31 points. That was a half percent. The Nasdaq up 49 points. That was a quarter percent. It appears that tariffs are happening this Saturday. President Trump made an announcement late Thursday. Officially announcing he says that he will be placing tariffs of 25 percent on Canada and Mexico on Saturday, February 1st. Now he had previously talked about this and had previously given something of a negotiating window saying the two countries could do more to shut down their borders but now saying that he will be imposing these tariffs on Saturday because of three reasons. People coming into the country because of drugs and fentanyl coming into the country and because of the subsidies he says we're supplying to those two countries in the form of trade deficits. So he says because of those big deficits,

he has to impose these tariffs and that these tariffs may or may not, he says, rise with time. CNBC's Megan Casella in Washington. Apple shares were dipping in after-hours trading. The company reported better than expected quarterly results, but iPhone sales were slightly lower than forecast. One of the reasons that we're cautious on Apple is that it's really expensive. I don't think that Apple is a broken company. We said there were some significant risks that weren't being priced in. Moffitt Nathanson's Craig Moffitt on CNBC. American Airlines shares were down 2% Thursday after the Wednesday night midair crash of its regional jet colliding with a military helicopter, killing nearly 70 people total. Investigators trying to figure out what happened.

Meantime, Southwest Airlines reported better than expected quarterly results on Thursday. It raised airfares heading into the holidays and CNBC took a moment to ask the CEO of Southwest about the airspace at Reagan International Airport in Washington. That's where the accident happened. You know, on the airspace, the system is as safe as it has ever been. And lowest level of incidents. We are very focused on the priorities that have continued, which is fund the FAA modernization, staff the air traffic control system, and continue to make progress. That's what will help with congestion.

Southwest CEO Bob Jordan on CNBC. Whirlpool, its shares plunged 16% Thursday, wiping out all of last year's gains. The home appliance company reported mixed quarterly results and a weak forecast as the housing market is still very slow. On Friday's watch list, it's an inflation Friday. We get PCE data, personal consumption expenditures. Earnings are coming from some of the big energy companies like ExxonMobil, Chevron, Philips 66. Plus, we hear from Colgate Palmolive and drug maker AbbVie. We get the latest on personal income and spending. New in theaters Friday, Warner Brothers thriller, Companion, Briarcliffs thriller, Valiant One, and DreamWorks family film,

Dogman. Jessica Ettinger, CNBC. Earnings season, the quarterly numbers as they break. The scorecard for the American economy. Earnings season on CNBC.