CNBC Business News Update - Market Close: Stocks Mixed, HIgher Bond Yields Now In Play, Fed Worried About Inflationary Trump Policies 1/8/25

Episode Date: January 8, 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 Ettinger, CNBC. Wall Street Next opens on Friday after the funeral and National Day of Mourning on Thursday for former President Carter. It's tradition for the stock markets to be closed on that National Day of Mourning. The bond market will close early Thursday. Stocks are all about bonds right now, and they're soaring interest rates rates which are the highest since last April. Bond yields have been spiking and that's been pushing stocks lower. It's a problem because what has happened now is the equity to bond correlation has turned negative. You're being held hostage by what happens with treasury yields itself. Virtus Investments Joe Terranova on CNBC

Wednesday was volatile on Wall Street but the markets closed mixed with the Dow and the Green up 106 points, led higher by shares of United Health up 2%. The S&P 500 index kept its head above water up nine points. The Nasdaq was down 10 points. The Fed indicated in its most recent meeting minutes that they'll move slowly on interest rate cuts this year. They're worried about the inflation impacts from incoming President Trump's policies, including tariffs that will raise prices for consumers and mass deportations of immigrants, which can hurt businesses from agriculture to construction to home health care. The outlook for fiscal policy, on the one hand, it's very buoyant when it comes to things

like tax cuts and deregulation. On the other hand, when it comes to trade and immigration, and look, the idea that the president would not rule out military action against three allies, and that went along with a pop in interest rates. I don't know if that's directly related, but we want to make sure we don't normalize apparent insanity here. CNBC senior economics reporter Steve Leisman. Requisites Bryn Talkington tells CNBC it all presents opportunities for investors. We've got lots of unknowns from the new administration that seem on the surface to be inflationary, but let's just see what will happen. I think if we get rates continue to move higher, I think it's going to be a great opportunity to buy the dip. A slower pace of hiring in December, payroll firm ADP says 122,000

new private sector jobs were created. This December report definitely represents a downshift from what we saw earlier in the quarter, but it's still a solid number. ADP economist Neela Richardson on CNBC. Fewer people than expected applied for unemployment benefits last week, which was a holiday week. We get the Labor Department's December employment report on Friday morning. Medicare drug plans can now cover Eli Lilly's blockbuster obesity drug, Zepbound, for obstructive sleep apnea. Netflix says its Squid Game season two racked up views at the fastest pace of any of its shows in the company's history. More than 126 million views in 11 days. Girl Scout cookie season is here. It's the final year for s'mores and toastier flavors.

Girl Scouts selling the cookies can earn badges for business and financial literacy. On Thursday's watch list, it is the funeral and National Day of Mourning to mark the death of President Jimmy Carter. The financial markets will reopen Friday. And the Orange Bowl is Thursday night, Notre Dame and Penn State. Jessica Ettinger, CNBC.