CNBC Business News Update - Market Close: Stocks Lower, GameStop Plunges, Strong May Jobs Report, Nvida Opens Monday After 10-For-1 Stock Split 6/7/24

Episode Date: June 7, 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 Monday morning after a blowout. Strong jobs report for May and a winning week for the major averages. The S&P 500 index hit an intraday record high Friday before drifting closer to the flat line. On Friday, the Dow was down 87 points. The S&P 500 index down 5. The Nasdaq was down 39 points. Companies whose shares hit fresh all-time highs on Friday include Eli Lilly,

T.J. Maxx & Marshall's parent T.J. X Companies, Costco, Walmart, and Procter & Gamble. Some investors say stocks are at record highs because they believe interest rate cuts will be coming eventually. Investors are still confident that we're going to be seeing rate cuts this year, and that's really all they need in order to go forward. My concern, however, is that we are at a relatively high level of interest rates. And so getting excited about 25 basis points, 50 basis points this year is a little bit like clamoring in to get into a nightclub, you know, and getting there and there's no one there like the pretty girl show up later. You're going to have to wait for these rate cuts to really into a nightclub, you know, and getting there and there's no one there, like the pretty girls show up later. You're going to have to wait for these rate cuts to really make a positive impact on the economy.

Kane Anderson Rudnick's Julie Beal on CNBC. GameStop shares tumbled 40% Friday on a drop in quarterly sales. A live stream by the trader known as Roaring Kitty didn't really say anything new about the company or why its shares are worth owning. Nvidia shares will be cheaper when the market opens Monday morning, the 10 for 1 stock split happening. It's the sixth time the company's done this to make shares more affordable for average investors. On Friday, shares were $1,208 at the close. Monday morning, they'll open at a much more affordable $120 a piece, give or take. The U.S. added a much stronger than expected 272,000 new jobs last month in the Labor

Department's May employment report. This is a strong report. It's on top of many strong reports that we've seen. Payroll growth obviously came in a bit higher than people expected. The unemployment rate ticked up slightly to 4%. The unemployment rate has still been at or below 4.0% for 30 months in a row. So it's still quite a strong report here. Elise Gould on CNBC. Meantime, if you've been seeing negative headlines or suspect news reports about young people having trouble finding work this summer, don't believe the hype or that clickbait. We've been seeing lots of doom and gloom headlines about how entry-level hiring is plummeting, how there are 75% fewer entry-level jobs for new grads.

That doesn't really appear to be the case. Zip recruiters Julia Pollack on CNBC. Actually, youth employment has either been the highest or the second highest each month this year since the Great Recession. If you have a high schooler or a college student or grad hanging around the house saying they can't find anything, double check that. Some investors are saying buckle up for next week on Wall Street. It's going to be rocky. We get the latest on inflation with the Consumer Price Index for May.

Now we're staring in the face. CPI next week. If CPI comes in sticky, this starts to bring into that view of, okay, the economy's hot. Inflation is sticky. Rate cuts are getting more and more pushed out. How does this end? I think that's going to cause the confusion for the markets. Expect more volatility. Nuveen's Sarah Malik on CNBC. On Monday's watch list, Nvidia shares open with that new lower price after the 10 for 1 stock split. No big earnings reports. Apple's Worldwide Developers Conference begins. Jessica Ettinger,

CNBC. I just love this game. So excited to share with the world. The Olympics from Paris starts July 26th on NBC and Peacock.