CNBC Business News Update - Market Close: Stocks Lower, S&P 500 Index and Nasdaq Snap 8 Day Winning Streaks, Boeing Has Another Plane Problem 8/20/24

Episode Date: August 20, 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, a mild pullback for the markets on Wall Street Tuesday. The rally takes a breather after a very rare eight-day winning streak for both the S&P 500 index and the NASDAQ, which followed that plunge on August 5th. Eight-day winning streak averaging, let's say, more than 1% of gains per day if you take from the intraday low on August 5th. So, obviously, time to cool off. CNBC's Mike Santoli. The markets, the Dow down 61 points on Tuesday. The S&P 500 index down 11. The Nasdaq down 59 points. Here's Freedom Capital's Jay Woods on CNBC. You have seasonal headwinds. August, September, we're down the last three August and Septembers consistently. It's the roughest patch for the market. September, the most volatile month. So if people think that, oh, we've had this nice wind streak, it's all clear. No, there's going to be a lot of chop in the next few weeks. have hit fresh all-time highs Tuesday include Walmart, Eli Lilly, Progressive, Berkshire

Hathaway Class B shares, and Netflix. GMC expects to outsell its electric truck competitors with its new Sierra pickup. High hopes for the EV truck. It's available in a $100,000 version now, but cheaper versions are on the way. Boeing shares were a drag on the Dow Tuesday as the company has yet another plane with a problem. Boeing halting 777X test flights because they found a cracked part. And for the 777X, this adds to a bumpy road that started all the way back in 2013. Remember, that's when they announced this, 2013.

And they had their first test flight in 2020. They said by 22, it'll be in service. And they had their first test flight in 2020. They said by 22, it'll be in service. No way. It's two years overdue. CNBC's Phil LeBeau. Sheehan suing Timu in a battle of the Chinese fast, cheap fashion companies. Sheehan says Timu has been stealing its designs.

Lowe's is cutting its full year outlook as the home selling season's been slow and it sees home improvement sales weakening this fall. We think Home Depot is in a better spot in this sort of mundane recovery where they have a bigger pro business that can help grow their sales into next year. Whereas Lowe's, our home improvement lead indicator suggests that people are not going to do big ticket purchases and Lowe's needs that big ticket discretionary consumer to come back to start outcomping Home Depot. Greg Mellick on CNBC. Eli Lilly's weight loss drug has been found to slash the risk of developing diabetes in a long-term trial. Terzepatide is used both in Zepbound for weight loss and Manjaro for diabetes and the CEO tells CNBC it's time for more health insurance companies to start covering this drug. We need insurance coverage.

When you have hypertension, you expect to have coverage for a hypertensive medication. When you have high lipids, you expect to have coverage for a cholesterol medication. When you have diabetes, which we can now slow down or prevent, you expect to have coverage. Why is obesity different? It's a fundamental health detractor, and the federal government doesn't pay for these. Many employers don't. They should. This is going to save money for our country in the long term and keep people living a healthier, longer life. Eli Lilly's David Ricks on CNBC. On Wednesday's watch list, earnings are coming from

retailers Target, Macy's, TJ Maxx and Marshall's parent TJX companies and Urban Outfitters, plus Zoom. The minutes from the last Fed meeting will be out. Investors are going to comb through those to see if a rate cut could be coming next month. Denny's has pumpkin pecan pancakes back on menus. Jessica Ettinger, CNBC. For me, Squawk Box is breakfast with the most interesting people in the world. Squawk Box, weekday mornings, 6 a.m. Eastern, CNBC.