CNBC Business News Update - Market Close: Stocks Mixed After Pop N Drop, Powell Says No Rate Hike Coming, Ceasars Admits "The House Lost" 5/1/24

Episode Date: May 1, 2024

From Wall Street to Main Street, the latest on the markets and what it means for your money. Updated at the open, midday, and close every weekday 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 Thursday morning after a mixed day for the first day of May trading, even after a pop and drop on what the chairman of the Federal Reserve said, giving investors what they wanted about interest rates. Not a cut, but some assurance that it won't be raising them. The Dow popped up 400 points on what the Fed chair said, but then finished the day up 87 points. The S&P 500 index down 17 points. The Nasdaq was down 52 points. The Fed left interest rates right where they are. And then the Fed chair said nobody's talking about rate increases.

I think it's unlikely that the next policy rate move will be a hike. I'd say it's unlikely. You know, our policy focus is really how long to keep policy restrictive. You ask, what would it take? You know, I think we'd need to see persuasive evidence that our policy stance is not sufficiently restrictive to bring inflation sustainably down to 2% over time. That's not what we think we're seeing. Federal Reserve Chair Jay Powell at the post-Fed meeting Q&A. U.S. crude oil falling way back down to $77 a barrel where it was in mid-March as tensions ease in the Middle East. Google cutting hundreds of what are called core employees. They're moving some jobs to India and Mexico in a cost-slashing move.

Caesars Entertainment had an interesting quarter, something you'd figure you'd never hear from a gambling giant. The house lost. Caesars missed earnings expectations largely because of bad luck. The house just didn't win at the tables in Vegas, and it hit the bottom line hard. Bad weather, Adele canceling shows, Super Bowl and March Madness games that favored bettors. CEO Tom Riege on the call called it, and I quote here, a repeated butt kicking. But he says the consumer is healthy and spending is robust.

Caesars occupancy booked at 98% through June. CNBC's Contessa Brewer. Homebuyers are scooping up arms adjustable rate mortgages. Demand for adjustable rate mortgages hit the highest level of the year, nearly 8% of all applications. ARMS offer lower rates. In fact, last week, a five in one arm fell to 6.6%. ARMS can be fixed for up to 10 years before adjusting to the market rate. The less affordable housing becomes, the more demand we see for arms. So rates have moved up even further this week, now around 7.5%. And to homebuyers out in today's super pricey and competitive market, that's real money on the monthly payment.

And you know, you don't buy the house, you buy the monthly payment. CNBC's Diana Olick. Tiger Woods' Sunday Red apparel line is out. After Woods left Nike, he's now with TaylorMade, which never made golf clothing before. And they say, no, it's not just golf clothing. Not just for apparel and footwear and golf, but athleisure and lifestyle outside of golf. And so we've been here in New York over the course of the past couple of days with our partner Tiger, bringing Sunday Red to market. TaylorMade CEO David Abilese on CNBC.

On Thursday's watch list, a big earnings report coming Thursday afternoon from Apple. Plus, we hear from Cigna, Amgen, ConocoPhillips, Shake Shack, Coinbase, Expedia, DraftKings, and Live Nation. We find out how many people applied for unemployment benefits last week. Ford releases April vehicle sales. And Thursday is Thurby at Churchill Downs as Derby week amps up ahead of the Kentucky Derby on Saturday. Jessica Ettinger, CNBC. CNBC is your ticket to Omaha, Nebraska for the annual Berkshire Hathaway meeting. Watch live on air, online, or app. Warren Buffett meets with shareholders, plus

their questions, his answers. Begins 9.30 Eastern, Saturday.