CNBC Business News Update - Market Close: Stocks Lower After Iran Fired Missiles At Israel, Oil Back Below $70 A Barrel, Beware Helene Recovery Scams 10/1/24

Episode Date: October 1, 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 by CNBC's Jessica Ettinger.

I'm Jessica Ettinger, CNBC. Wall Street opens Wednesday morning after a down day Tuesday for the markets on escalating Middle East tensions. Iran fired missiles at Israel. The Dow down 173 points, four-tenths of a percent, led lower by Intel shares, which were down 3%. Apple shares fell almost 3%. The S&P 500 index was down 53 points, a half a percent, and the Nasdaq was down 278 points, about one and a half percent. Over the last couple of years, these geopolitical threats have become realities. And when that happens, investors tend to panic, and we start seeing them, you know, fire sale a lot of their holdings. And what we saw today was

sort of just that, right? Defiance ETFs, Sylvia Jablonski on CNBC. There were companies whose shares hit fresh all-time highs Tuesday, including weapons makers Lockheed Martin and Raytheon. Nike, out with mixed quarterly results after the closing bell Tuesday, shares popped up, then pulled back, the companies gearing up for a new CEO. Oil prices popped up 4% Tuesday. I mean, it was the deteriorating geopolitical situation in the Middle East that really sparked those fears that could disrupt some of these oil supplies. Blue Line's Philip Strebel on CNBC.

And here's RBC's Halima Croft. We do not have an undersupply situation in the market at present. Do the Israelis respond? Do they potentially target the Iranian oil facilities? Iran is producing at a five-year high, over three million barrels a day. There is significant oil at stake in terms of raising the cost for the West for this war. As oil prices spike, CNBC's Brian Sullivan says things have been happening behind the scenes. To try to make sure you keep enjoying the currently low prices at the pump here in the U.S. I can guarantee there'll be some backdoor communication with Saudi Arabia and maybe some others because the one thing the White House does not want is some kind of super spike in the

price of gasoline one month before an election. U.S. crude ended Tuesday, pulling back from its spike back down below $70 a barrel. The ILA Union International Longshoremen's Association on picket lines, 45,000 dock workers turned down a nearly 50 percent pay raise offer because it's not so much about money. It's about robotic systems replacing them in their jobs. The massive U.S. port strike hitting the East Coast and Gulf Coast of America. Nearly 50,000 members of the International Longshoremen's Association walked off the job at midnight as a deadline for a new labor deal passed without any kind of a resolution.

Now, as a result, 36 seaports from Maine to Texas are currently shut down. Moody's estimates it could cost the American economy around $2 billion per day. CNBC's Dominic Chu, you may see certain items in short supply at stores in the next week if the strike continues. From certain imported alcohol to items made overseas like electronics and even bananas. As people in at least seven states continue to try to recover from the hurricane, October is here. It's traditionally Florida's busiest month for hurricanes. The National Hurricane Center now monitoring Tropical Storm Kirk in the Atlantic,

along with two other tropical disturbances, including one in the Caribbean Sea. That's the one that has the highest chance of developing into something that could threaten the U.S. On Wednesday's watch list, earnings are coming from ConAgra and Levi Strauss. Tesla releases its third quarter vehicle delivery numbers. We find out how many people applied for mortgages last week. Jessica Ettinger, CNBC. The vote. It's as American as apple pie. It's iconic. You got the flag up now. Patriotic.

And this November, we're all chanting, it's your turn. Voter up.