CNBC Business News Update - Market Close: Stocks Lower, Dow On Longest Losing Streak Since 1978, Investors On Hold For Fed Rate Decision 12/17/24

Episode Date: December 17, 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 Edinger, CNBC. Wall Street opens Wednesday morning after a down day for stocks. The Dow fell 267 points, a half percent. The S&P 500 index down 23. The Nasdaq was down 64 points on Tuesday. Now the Dow's been down nine straight days, dragged lower consistently by shares of UnitedHealth Group, which started falling the day the CEO of the health insurance business

was murdered on the street in New York. The Manhattan District Attorney has indicted 26-year-old Luigi Mangione on murder charges for his alleged crime. The maximum penalty would be life in prison. The Dow is on its longest losing streak since 1978. So what's going on? The Dow Jones Industrial Average is a price-weighted index. So the biggest stocks have a very large influence on it. So Verizon at $40 has far less influence on the Dow

than UnitedHealth at $486. In fact, one-tenth the influence overall. UnitedHealth, the second biggest stock by price, is down about, oh, 126 points since it began dropping on December 5th. And that's about 800 Dow points. CNBC's Bob Pisani. The Nasdaq pulled back Tuesday, but from a record high. Companies whose shares hit all-time highs on Tuesday include Google parent Alphabet, Apple, and Tesla. This over-concentration in tech, that's the biggest risk in the market right now. And we saw this with Nvidia, which is already in correction territory. So we really feel that going into 2025, investors should start to take this opportunity and broaden their scope a bit. Wall Street Alliance Group's Adeel Zaman on CNBC. Investors bracing for what they hope will be an interest rate cut

when the announcement comes Wednesday afternoon by the Fed. Some experts tell CNBC, though, because it's baked into stock prices, the Fed might feel it has to cut rates. Many believe it should actually pause. Consensus at this point in time is going to push their hand into a cut. And as we think about 2025, it's about setting expectations towards a higher neutral rate at that point in time and allowing the market to recalibrate to that. Citizens Welts, Michael Hans on CNBC. Amazon facing more pushback from employees. Workers at an Amazon delivery station in Skokie, Illinois voting to authorize a strike, becoming the third such union to do so

against Amazon in less than a week. The union had given Amazon a December 15th deadline to agree to come to the table and bargain for a contract. CNBC's Silvana Hanau. Walmart employees are wearing body cams in some stores. It's a pilot program to see if the cameras help deter conflict and prevent theft. Earlier this year, TJX companies said its loss prevention employees are wearing body cams in some locations. That's the parent of TJ Maxx, Marshalls and Home Goods. On Wednesday's watch list, the Fed announces its decision on whether to cut interest rates. We get earnings from home builder Lenar, Birkenstock, Micron and General Mills. We get a read on the new

construction home business with building permits and housing starts numbers. And it's one week to Christmas. Jessica Ettinger, CNBC. Inside Wealth, an exclusive newsletter for a select audience. Inside family offices, how the wealthy become ultra wealthy. Robert Frank's high net worth perspective. Join the list at CNBC.com slash Inside Wealth.