CNBC Business News Update - Market Close: Stocks Lower, Nvidia Out With Better Than Expected Quarterly Results, Fed Worried About Tradeoffs 5/28/25

Episode Date: May 28, 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 Edinger CNBC. Wall Street had a down Wednesday for stocks. The Dow down 244 points, a half percent, led lower by shares of drugmaker Merck, which were down almost 2%. The S&P 500 index down 32 points. That was a half percent. The NASDAQ was down 98 points. That was a half percent. The S&P 500 index still barely in the green for the year. Three stocks down for everyone up today. They still think you have to expect you're going to stay in the chop zone for a little while. Be perfectly routine and textbook, even to pull back more than we did last week.

And so far it's not really tripping any any key wires. That's CNBC's Mike Santoli. Companies who shares at fresh all-time highs on Wednesday include payroll companies, paychecks and ADP, travelers, insurance, Monster Beverage, Olive Garden Parent, Darden Restaurants, Booking Holdings and Netflix. NVIDIA out with better than expected quarterly results after the closing bell on Wednesday. It took a four billion dollar charge in the first quarter related to chips.

It's no longer selling to China, but that was less than experts thought. Investors are hoping some of the Middle Eastern diplomacy by the Trump administration will open up that market, which could help offset what Nvidia loses in sales to China. Seven consecutive quarters of double beats. And here we have an eighth. I'm not surprised at all. And this was going to be one of the noisier quarters now,

but second half is all about upside. More insights, Patrick Moorhead on CNBC. Double beat means more than the experts thought for both earnings and revenue in the quarter. President Trump reportedly ordered a halt to software sales to China. The Financial Times saying Siemens, Cadence and Synopsys each got letters that told them to stop selling to Chinese clients. The minutes from the last Fed meeting show the group is worried it could face difficult

trade-offs if tariffs re-aggravate U.S. inflation. The Fed has two jobs. One is to keep inflation as low as possible and the second is to keep the job market as strong as possible. Macy's CEO says prices will have to go up as tariffs cut into profits. Macy's also cut its profit outlook for the full year. Abercrombie and Fitch shares soared even after the retailer slashed its profit outlook because of the Trump tariffs. Its revenue guidance was still better than expectations. Vail's new CEO is its old CEO. Executive Chairman Rob Katz is returning to the CEO position, replacing Kirsten Lynch, who is stepping down from that role and from the board.

Katz previously served as CEO from 2006 to 2021. The shake-up comes after a pretty tough winter season for the company that included a ski patrol strike in Park City, Utah over the New Year's holiday. CNBC's Frank Holland. Ford recalling more than a million vehicles because of an issue with rear view cameras increasing the risk of death. On Thursday's watch list, we get earnings from more retailers, Best Buy, Bath and Body Works, Burlington Stores, Foot Locker, Kohl's, American Eagle Outfitters, plus Gap, Ulta Beauty, and Costco.

We find out how many people applied for unemployment benefits last week, and the Scripps National Spelling Bee Finals will be on Thursday night on the ION Channel. Jessica Edinger CNBC. CNBC has the most affluent audience in television but money itself doesn't have any meaning it's how you make it and what you do with it that gives it purpose.