CNBC Business News Update - Market Close: Stocks Lower, Apple's Worst Day Since Last August, Tesla Discounts Cybertrucks 1/16/24

Episode Date: January 16, 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 losing day for the major averages. The Dow falling 68 points, led lower by shares of UnitedHealth, down 6%. The S&P 500 index was down 12 points. The Nasdaq plunged 172 points. NVIDIA shares down almost 2%. Apple shares were down almost four percent. They led the Nasdaq lower. Apple coming off its worst day since last summer on various reports of weaker

iPhone sales, especially in China. Deep in this pullback that Apple's undergone here so far in the last several weeks really wiped away months worth of gains. CNBC's Mike Santoli. American investment banks out with a record smashing quarter. Earnings season is on. They were helped by surging trading activity around the U.S. election and a pickup in investment banking deal flow. JPMorgan Chase, Goldman Sachs and Morgan Stanley easily beat estimates for the fourth quarter. Most believe the boom times are just getting started. Incoming President Trump's Treasury pick billionaire Scott Besant says government spending is out of control. Heavier sanctions on Russia are coming.

There's no reason for digital currency. And current Social Security payments won't be touched. He testified to the Senate Banking Committee Thursday. Retail sales for December were solid and investors liked that. Retail sales, the control group at 0.7 percent, the consumer is just fine, absolutely just fine. And we've been saying that, I've been saying that for a long time, and that's 75 percent of the economy. Hightower's Stephanie Link on CNBC. Retail sales look good for December, but Target shares slipped on some fresh holiday sales numbers there.

You may have found some deals in the store, but that may have hurt the chain's profit. Target said sales for November and December grew 2.8%, with comparable sales up 2% and record high sales during Black Friday and Cyber Monday. But those are big promotional selling periods. Now, the retailer raised its comp sales guidance as a result of all of that to one and a half percent from flat. However, Target only reiterated not raising its earnings guidance and no mention of margins, what those might be looking like. So the question that many are asking, did Target have to discount aggressively in order to spur those sales at the expense of profitability? CNBC's Courtney Reagan. Tesla's Cybertruck was the best-selling electric pickup truck last year.

It's not really a pickup. Beating the Ford 150 Lightning and the Rivian R1T. But there might be trouble in Cyberland. Shares were down 3% on Thursday. Are Tesla shares falling because of new incentives added to the Cybertruck to increase sales. I'm not sure that they're moving because of that, but certainly whenever you're talking about a new vehicle having incentives put on, it raises the question, is there a demand issue or is there an inventory issue? Either way you look at it, the Cybertruck discounts have been added. The incentives anywhere

up to $2,600. CNBC's Phil LeBeau. On Friday's watch list, earnings for more banks. Regionals like Truist, Regions, Citizens, State Street and Huntington. We get the latest housing starts and building permits numbers and data on industrial production. After Friday's session, the financial markets will be closed Monday for the Martin Luther King holiday. Jessica Ettinger, CNBC. The second inauguration of President Donald Trump and the impact on American business. Becky Quick, live in Washington with influential investors including Stanley Druckenmiller and Elon Musk biographer Walter Isaacson.

Monday starts 9 a.m. Eastern, CNBC.