CNBC Business News Update - Market Close: Stocks Mixed, Dow Eeeks Out Gain To Snap 10 Day Losing Streak, Private Equity Eyeing College Sports Programs 12/19/24

Episode Date: December 19, 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 Friday morning after a weak attempt to bounce back from Wednesday's ugly sell-off for stocks. The major averages were mixed on Thursday. The Dow, which plunged 1,100 points on Wednesday, snapped its longest losing streak since 1974, but it was only up 15 points, led higher by shares of Boeing, which were up 2.5%. The S&P 500 index in the red down 5. The NASDAQ was in the red down 19 points. Investors did not like that the Fed signaled fewer rate cuts may be coming next year. I'm just not sure you can mark down any real cuts

from here, given that you've got a solid economy and you've got inflation that probably at the margin is going to tick up a bit from here. BlackRock's Rick Reeder on CNBC. Since the Fed did cut rates Wednesday by a quarter percentage point, why are mortgage rates going the other way and going up? Back above 7% on Thursday, the Fed does not directly have anything to do with home loan rates. Instead, those rates follow the yield on the 10 year treasury, which was going higher. The average rate on a 30 year fixed home loan now 7.1%, according to Mortgage News Daily. For November, more existing homes were sold than forecast. A quarter of all those sales were all cash deals. Cash is still king at 25% of sales. The median price in November, $406,000, up 4.7% year

over year, and 18% of sales went above list price. And I do want to note that mortgage rates shot up yesterday after the Fed announcement to well over 7%. CNBC's Diana Olick. It's crunch time for the airlines as the Christmas and New Year's holiday period for travel begins. Here's the CEO of Delta. We're looking over the Christmas break from the Friday before Christmas to the Monday after New Year's, serving approximately 10 million people and doing it a great style with great experience. Delta Airlines CEO Ed Bastian on CNBC. CNBC teaming up with athletic director Yu to put out an inaugural list of 75 most valuable college sports programs. At the top, Ohio State valued at $1.3 billion, followed by the University

of Texas, Texas A&M, Michigan, and Alabama. Wall Street is eyeing a fresh trade next year. Private equity already has stakes in NFL teams. Why not college sports? This hasn't happened yet, but I think it will by the end of next year. I don't think they'll own majority stakes. I think what they'll do is they'll create a sort of a special purpose vehicle. They'll put the revenue generating assets in there,

like television, merchandising, licensing, retail, and they'll own a minority stake of that. Private schools may be the first to do this. You've got issues with the public schools. They're land-grant schools. They have restrictions from the states. So there's some things to be worked out for sure. Yeah.

One thing that seems certain is the profit motive has come. Absolutely. And it's come hard. Big time. Big time for sure. CNBC sports reporter Mike Ozanian with CNBC's David Faber. On Friday's watch list, we get the latest on inflation. Earnings are coming from Carnival Cruise Line.

We get the latest on consumer sentiment. Friday, the 10th busiest shopping day of the year ahead of Saturday's Super Saturday. New in theaters, A24's Baby Girl. Disney's Mufasa, The Lion King, and Paramount's Sonic the Hedgehog 3. Jessica Ettinger, CNBC. Jim Cramer is the benefit you get that you can't get anywhere else. He has a unique ability to know the market, explain it to people. It's a great value. Get invested. Join the club today. Go to cnbc.com slash join Jim.