CNBC Business News Update - Market Close: Stocks Mixed, Microsoft Confirms Job Cuts, Paramount & Skydance Agree On Merger Terms, Oil At Lowest Since Feb 6/3/24

Episode Date: June 3, 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.

On Wall Street, stocks were mixed yesterday to start June trading, but look at that drop in oil prices. I'm Jessica Ettinger. A mixed start to June trading on Wall Street yesterday. The Dow falling about 100 points. The S&P and the Nasdaq were higher. The S&P 500 is really not far from its record high, you know, within a percent or two. Sometimes when you get this sort of arrhythmia in the markets, not everything moving in one direction, it can mean that the market is sniffing out some kind of macro problem. It's obviously worried about slower growth or higher inflation. In bull markets, some of this sort of repairs itself. CNBC's Mike Santoli. U.S. crude oil fell below $75 a barrel

for the first time since February, even after OPEC Plus decided to cut production last weekend to prop up oil prices. It's all good for drivers who've been watching prices at the pump fall. Microsoft confirms job cuts in its mixed reality division. Paramount and Skydance have agreed to the terms of a merger deal. Nothing was final as of market close Monday. We're at the end on Paramount. Terms have been agreed to between the special committee and Skydance. That's David Ellison and Redbird, the private equity firm. And now the deal, as I understand it, is awaiting a sign off from the control shareholder of Paramount. That is Sherry Redstone. CNBC's David Faber. Employees at Paramount Properties like CBS, MTV, Showtime, and more are wondering about their futures.

Costco shares hit an all-time high yesterday. Some investors say they can go higher. No company has consumer data that's as valuable or as complete as Costco because you give them their membership card every time you make a purchase. Most of their income and cash flows comes them their membership card every time you make a purchase. Most of their income and cash flows comes from their membership fees. So as long as people see value in the membership, Costco stock works. Loop Capital's Laura Champagne on CNBC. John should ask, what company is raising prices while others are cutting them? Yeah,

look at the names cutting prices. Walmart, Target, Costco, Walgreens, so many more. But Spotify is raising prices. Spotify Premium going to $12 a month for individuals. The family plan going up by $3 to $20 a month. The business model itself is very challenging. Spotify is competing against Apple and Amazon. Meanwhile, the cost to actually pay out royalties, that just seems to be an immovable floor. It is basically making money between the wallpaper and the wall.

This is not one that we're that enthusiastic about, even though they are getting choice profitability. It's just a question of whether or not they can maintain it. Chantico Global's Gina Sanchez on CNBC. On today's watch list, the Fed begins a two-day meeting on interest rates. We get earnings from Bath & Body Works and CrowdStrike. And tonight's mega millions jackpot is more than a half billion at $560 million.