CNBC Business News Update - Market Close: Stocks Lower, Mexico & Canada Get Pauses On US Tariffs, Investors Spooked 2/3/25

Episode Date: February 3, 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 was whipsawed by the Trump trade war on Monday and the threat of tariffs. Stocks plunged Monday morning, but recovered some by Monday afternoon when Mexico got a pause on its tariff fate. By the end of the day Monday, President Trump paused any tariffs on Canada, too.

The major averages all lower on Monday. The Dow was down 122 points. It had been down 600. Apple shares led the Dow lower, though, down 3%. The S&P 500 index down 45 points. The Nasdaq down 235 points. That was one and a quarter percent. Nvidia shares were down almost 3. Companies whose shares hit fresh all-time highs on Monday include Walmart, IBM, Ticketmaster, ParentLive Nation, Costco, AutoZone, O'Reilly Auto Parts, grocery chain Kroger, Olive Garden, Parent, Darden Restaurants. Mexico got a pause on tariffs for a month before they even started. Mexican troops at the border to try to stop fentanyl in exchange for the U.S. trying to stop the flow of weapons into Mexico.

The U.S. is the biggest supplier of guns for cartels there. The threat of tariffs spooked investors Monday. If I was an American business person, I'd be thinking, is this my life for the next four years? Tariffs, even if these tariffs get negotiated, what's prevent the president six months from now, a year from now saying, guess what? I don't like that negotiation. We're doing it all over again. The American Enterprise Institute's James Pethokoukis on CNBC. Crude oil up about 1% since the start of the year

and with potential Trump tariffs on the minds of many. it's all eyes on China. I think there is some concern about potential broader disruption. The question going forward is if we think about tariffs is we'll be seeing further tariff action that could really impact demands or hence we watch very carefully the situation with China. U.S. crude now hovering around $72 a barrel, but prices at the pump have gone down in the past week. AAA says the national average for a gallon of regular is $3.09. That's down three cents a gallon from last week. If you've applied for a loan recently and been rejected, you're not alone. Nearly half of Americans say they've applied for a loan in the last 12 months, and half of those people have been denied.

Among those who've been rejected, two-thirds say it negatively impacted their personal finances, according to Bankrate. New England Patriots owner and billionaire Robert Kraft promoting a very different type of ad in the Super Bowl this Sunday with Tom Brady and Snoop Dogg. I hate you because you look different. I hate you because I don't understand you. I hate you because people I know hate you. I hate you because I think you hate me. Because I need someone to blame. Because you talk different. Because you act different. Because you're just different. Man, I hate that things are so bad that we have to do a commercial about it. Me too. Here's Kraft on CNBC. We have two people here who most people wouldn't think they have a lot in common, yet they're 100% together on this issue. When I called each of them to do it, they agreed right away because they feel like I do, that there's something going on in the country that is just not good for America.

You can see the full story at CNBC.com. On Tuesday's watch list, we get earnings from Google Parent Alphabet, Merck, Pfizer, PayPal, PepsiCo, UBS, Estee Lauder, Regeneron, Spotify, Chipotle, Mexican Grill, Mattel, and Match.com Parent Match Group. We get the latest on factory orders, and Bill Gates' memoir will be out. Jessica Edinger, CNBC. CNBC. Live ambitiously.