CNBC Business News Update - Market Close: Stocks Lower, Nvidia Passes Apple To Become World's Most Valuable Company, Homeowners Cautious On Home Equity Loans 11/4/24

Episode Date: November 4, 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 Tuesday, Election Day morning after a down date for the markets and some volatility, some profit taking to Intel being replaced later this week in the Dow by NVIDIA and Intel shares fell almost 3% Monday, leading the Dow lower. The Dow fell 257 points, a half percent. The S&P 500 index was down 16. The Nasdaq was down 59 points. Nvidia shares added another 1% Monday, passing Apple again to become the world's most valuable company. Some investors are looking for bargains in the bumpiness on Wall Street. Using any volatility that we get this week from the elections, from earnings, from the Fed,

and make a shopping list to be buying because the economy is strong. Inflation is coming down. The consumer continues to be spending. High Towers, Stephanie Link on CNBC. Investors are on hold for the election results and also whether the Fed will lower interest rates again this week. The two-day meeting to decide that starts Wednesday. It's widely expected to cut a quarter percentage point. One investor tells CNBC stocks may benefit just by having that election in the rear view. Just having this election being over actually probably is a good thing. And having it be over, do we know who the president is going to be? Is it going to be final? If we know that by Thursday afternoon,

it's actually probably a good thing. It's not something that market's necessarily expecting. Horizons, Scott Ladner on CNBC. Labor strikes have shut down operations at Canada's container ports from east to west coast. U.S. trade is in limbo. This impacts the U.S. in a big way. About a fifth of all goods destined for the U.S. come through Canadian ports. The U.S. is Canada's largest trading partner. Containers filled with apparel and footwear, auto parts, chemicals, and lumber, just some of the top products that enter the port of Vancouver and use Canadian rails or trucking to come into the United States. Goldman Sachs out with a list of companies that are most exposed to the Trump tariffs if he wins the presidential election.

Trump has threatened to tax everything coming into the U.S. from China, which some say would then become a tax on American consumers who would have to pay more. Lots of retailers are on this list, especially Best Buy and clothing companies. A Harris win means there are a lot of stocks that could pop higher. There's been an overhang really since midsummer with respect to the tariffs, right, and the impact on the retail stocks. And Elf produces a lot of their goods in China, clearly, along with other retail names, the dollar stores, Dick's Sporting Goods. You can kind of go down the list there. And a Harris win would certainly remove that overhang. Wolf's Chris Sinek on CNBC. Homeowners are sitting on a record amount of home equity, but tapping that through home equity loans and lines of credit isn't as hot as you

would think because interest rates have been high. U.S. homeowners collectively are sitting on a little over $17 trillion in home equity. About $11 trillion of that is tappable, according to ICE Mortgage Technology. Now, while mortgage rates don't exactly follow the Fed, home equity lines of credits are tied to the Fed's rate. And if we see the Fed lower interest rates more, that will make it cheaper to take out that home equity. But people are still surprisingly conservative today.

CNBC's Diana Olick. On Tuesday's Watch List, we get earnings from Burger King and Tim Horton's parent restaurant brands, Pizza Hut, KFC, and Taco Bell parent Yum! Brands, and Archer Daniels Midland. Plus, it's Election Day and National Donut Day, with deals and discounts at some of the big chains. Jessica Ettinger, CNBC. The vote. It's as American as apple pie. You got the flag up now.

Patriotic. And this November, we're all chanting, It's your turn. Voter up.