CNBC Business News Update - Market Close: Stocks Lower After Volatile Day, S&P 500 Index On Longest Losing Streak Since April, Apple TV+ Free Streaming Period 1/2/25

Episode Date: January 2, 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 Ettinger, CNBC. Wall Street opens Friday morning after a rocky start for stocks on the first trading day of 2025. The Dow gave up more than a 300-point gain and finished lower. And the S&P 500 index is now on its longest losing streak since last April. On Thursday, the Dow fell 151 points, led lower by shares of Boeing, which were down almost 3%. The S&P 500 index dropped 13 points. The Nasdaq was down 30 points. Some investors say after two straight years of double-digit S&P 500 index gains, a rare occurrence, stocks could pull back. I think this is a year for a correction.

I think the end of the year, I'm not saying we'll be in a correction by the end of the year, but it's been a long time since I've called something like that. That's Wharton professor Jeremy Siegel on CNBC. Yardeni Research's Ed Yardeni says he still sees the S&P higher when this year ends than where it began. I still think the market's in good shape. I'm very optimistic on the earnings outlook because I'm optimistic on the outlook for the economy. I'm looking for the S&P 500 to go up. I'd rather get to 7,000 by the end of the year, but it's not going to be a straight line.

And I would think in the next few weeks things are going to be somewhat bumpy. Tesla had something happen that's never happened before. It reported its first drop in annual deliveries. Tesla used to have the electric vehicle market mostly to itself, but now drivers are choosing other brands from Ford to GM to Hyundai and others. The first annual decline in deliveries for Tesla, 20,000 vehicles, but it is a decline. You're starting to see perhaps a bit of a glut. One of the things we'll be looking at, where do they come in with this lower priced model? And when do we see that? Do we see that second half of 25? CNBC's Phil LeBeau. Oil popped to its highest since mid-October on Thursday, topping $73 a barrel.

Drivers could see a tick higher in prices at the pump, but AAA says the national average for a gallon of regular is $3.06. 25 U.S. states have average gas at $2.99 or under. Would-be homebuyers starting the new year facing mortgage rates pushing 7.1 percent, according to Mortgage News Daily. The housing market was hoping for a big boost from the Fed cutting interest rates, but mortgage rates don't follow the Fed. Instead, they loosely follow the 10-year Treasury and yields are higher. Mortgage demand positively cratered to end 2024 thanks to a sharp rise in mortgage interest rates. While December is typically the slowest month of the year for home sales, there are more homes on the market now than there were last year at this time. But many of those homes have been sitting

for months due to higher prices and again these higher mortgage rates. Mortgage News Daily has the 30-year fixed rate now over 7 percent. CNBC's Diana Olick. Golf fans happy their sport is back. The PGA Tour season opened with the century in Lahaina, Hawaii. Hollywood's final big movies of the year, like Sonic 3 and Mufasa, failed to help the 2024 box office surpass 2023. On Friday's watch list, we get light vehicle sales numbers for some of the automakers. Congress convenes for the first time in 2025. Jessica Ettinger, CNBC.

Get a head start on 2025 with the hottest tech event, CES, the Jobs Report, and meet the future of biotech and pharma at JPM Healthcare, and the meeting of world leaders in Davos. Plus, the first Fed decision of the year, CNBC.