CNBC Business News Update - Market Close: Stocks Lower, Dow Had Its Worst Day of the Year, Bond Yields Up, New Home Sales Down 5/23/24

Episode Date: May 23, 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 and reported by CNBC's Jessica Ettinger.

I'm Jessica Edinger, CNBC. Wall Street opens Friday morning after a sell-off for stocks. The Dow had its worst day of the year, shedding 600 points and pulling way back from that 40,000 mark. NVIDIA's blockbuster results failed to hold up the broader markets. Bond yields ticked higher. The Dow was dragged lower by shares of Boeing, which warned about slowing production and cash flow issues. The Dow down 605 points, 1.5%. It's now sitting at 39,065.

The S&P 500 index down 39 points, three quarters of a percent. The NASDAQ down 65 points. That was about four tenths of 1%. So what happened? CNBC's Scott Wapner asks CNBC's Senior Markets Editor Mike Santoli. Drop some knowledge on us. It's a pretty good little rinse. I mean, you have this slightly ugly setup where you do have this push higher into an intraday record high and then you lose it. I think there's a high sensitivity to these relatively modest moves in treasury yields as it is right now.

You've got to reset and the S&P is trading higher than it has in the history of time except for the last week and a half. There were companies whose shares hit fresh all-time highs on Thursday including Microsoft, Applied Materials, Micron and Nvidia. Live Nation shares were under pressure. The Department of Justice and a group of states have filed an antitrust lawsuit against it. A statement from the Attorney General Merrick Garland who says it's time to break up Live Nation and Ticketmaster. They're citing a relationship here with an entity called Oak View Group, which is a potential competitor turned partner, the Department of Justice says,

that has described itself as a hammer and a protector for Live Nation. Also citing the fact that the company allegedly retaliates against potential entrance into the market, threatening and retaliating against venues that work with rival companies. They're saying that they lock concert venues into long-term exclusive contracts so that venues can't consider or choose rival ticketers, restricting artists' access to venues, and finally acquiring competitors and competitive threats. CNBC's Eamon Javers. Here's what Columbia Law professor Tim Wu told CNBC. This is sort of the textbook definition of a rapacious monopoly. And the United States government allowed them to merge in 2012 or so.

Live Nation and Ticketmaster. And that ended up being a big mistake. Could have more Atlantic hurricanes this year. NOAA, the National Oceanic and Atmospheric Administration, released its forecast, and the insurance industry was watching. Look, we've had a break from significant hurricane activity the last few years. NOAA is now forecasting an above-normal season with the potential for as many as 13 storms to become major hurricanes, Chubb, Travelers, Allstate and Progressive, all with exposure in the case of a major hurricane, multiple insurers have pointed to increased climate risk as a major factor in rising rates. CNBC's Contessa Brewer. On Friday's Watch List, no big earnings reports.

Scheduled ahead of the long Memorial Day holiday weekend, we do get the latest on durable goods orders. Those are things made to last a long time, like airplanes and washing machines. We'll also get the latest on consumer sentiment. New in theaters, Sony's The Garfield Movie and Warner Brothers' Furiosa, a Mad Max saga. Jessica Ettinger, CNBC. The Investing Club.

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