CNBC Business News Update - Market Close: Stocks Lower, Dow Plunges 500 Points as the Tech Selloff Continues, Netflix Out W Good Quarterly Results But Weaker Outlook 7/18/24

Episode Date: July 18, 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 another tech sell-off day. Markets were volatile. Major averages all in the red. Investors were taking some profits. The Dow fell 533 points. It's back below 41,000. That was one and a quarter percent. The S&P 500 index down 43 points, three quarters of a percent. The NASDAQ was down 125 points. That was seven tenths of one percent. There is more room for tech to go down at this point, especially if earnings don't meet investors' expectations.

Nuveen's Sarah Malik on CNBC. Companies whose shares hit fresh all-time highs on Thursday include Homebuilders, D.R. Horton, Pulte Group, and Lennar. Procter & Gamble, Walmart, Allstate, American Express, Berkshire Hathaway Class B, and Discover. Netflix out with quarterly results after the closing bell Thursday. Better than expected for the second quarter and better subscriber numbers too, but a weaker outlook for this current quarter. Shares were falling in after hours trading Thursday, but the streamer does the best job of keeping subscribers from canceling or churning out. They had 92 original seasons of programming for the quarter.

You look at Disney Plus and it has mid-teens original new seasons. They can really keep churn low, which is really what's hurting the legacy media company streaming services. Netflix churn is under 2%. The average for the other streaming services is about 5.5%, which is really high. Orbit Gaming's Newsweek editor-at-large Tom Rogers on CNBC. Meantime, if you pay for Netflix now, you might be paying more down the road. One analyst is seeing a Netflix price increase coming. Looking at you, NFL fans. Loop Capital predicting that Netflix will eliminate its basic ad-free tier in the U.S. as it pushes its ad-supported option,

forecasting a price increase at some point this year, particularly an increase of the standard tier ahead of Netflix streaming Christmas Day NFL games. CNBC's Julia Borsten, Domino's Pizza shares plunged 13% on week quarterly results. Fast food consumers, it turns out, are chasing deals at lots of chains. New data from Pacer AI found that McDonald's, Starbucks and Chili's were among the names who saw a boost in foot traffic from limited time offers as value-hungry consumers flocked to checkout deals. But keeping those consumers coming back beyond those limited time frames will be key as this quarter has also marked some pushback against brands perceived to be holding back on portion sizes and raising prices, including McDonald's and Chipotle, just to name a few. CNBC's Kate Rogers. DaVita will pay more than $34 million to settle allegations of illegal kickbacks. According to the U.S. Justice Department,

DaVita has more than 2,000 kidney dialysis centers around the U.S. On Friday's watch list, earnings are coming from American Express and Travelers. New in theaters, Shudder's horror film Oddity and Universal's Twisters. Universal is a sister company to CNBC. Open golf continues at Royal Troon in Scotland. One week till the Summer Olympic opening ceremony in Paris. Jessica Ettinger, CNBC. Squawk Box from Paris.

Don't miss exclusive interviews. Highlights from the games. Starts July 29th, CNBC.