CNBC Business News Update - Market Close: Stocks Mixed, Microsoft Lower After Hours on Slower Cloud Growth, Facebook Parent Meta to Pay Texas $1.4 Billion 7/30/24

Episode Date: July 30, 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 Ettinger. CNBC, Wall Street opens Wednesday morning for the last day of July trading. After a mixed day for stocks and a tech sell-off or some profit-taking. Either way, the Dow was in the green with a decent day, up 203 points. The S&P 500 index down 27. The Nasdaq was down 222 points on Tuesday, one and a quarter percent. Microsoft out with better than expected quarterly results after the closing bell on Tuesday, but shares were lower in after hours trading on slower than expected cloud growth.

Microsoft, in terms of dollar amount, has one of the highest recurring revenue streams in the world of any company. There's predictability of earnings, there's quality of management. That's why Microsoft gets the premium. Short Hills Capital's Steve Weiss on CNBC. Starbucks with a rough report. Same-store sales dropped for the second quarter in a row. But its shares ticked higher after hours on a three-part action plan the coffee chain says is starting to work. Investors on hold for the Fed meeting on interest rates to end Wednesday afternoon. No rate cut is expected,

but Fed Chair Jay Powell may hint that rate cuts are coming in September. Expect the Fed statement and the Fed chair to provide some limited guidance that there is more confidence inflation is declining and rates can come down, but he's not going to show his hand is just how far and how quickly he's going to get there. CNBC senior economics reporter Steve Leisman, one economist that joined CNBC's anchors at the Olympics in Paris, flat out said it's time to cut those interest rates. We're too restrictive for an economy with an inflation rate of 2.5 percent. Moreover, if you looked at the New York Fed's multivariate core trend yesterday, 2.1 percent. There's an alternative metric where we measure the inflation like they do here in Europe.

It's actually below 2 percent. It's time to cut rates. RSM economist Joe Busuelas on CNBC. Jeep parent company Stellantis poised to offer broad buyouts to American salaried workers with a warning of possible job cuts coming. Facebook parent Meta will pay the state of Texas 1.4 billion dollars to settle a lawsuit over facial recognition. For more than 10 years, Facebook ran facial recognition software on every picture uploaded to Facebook, and Texans didn't know it and didn't consent to it. This facial recognition privacy lawsuit in Texas, the unauthorized capture of personal biometric data, they say this is the largest settlement ever obtained from an action brought by a single state. But based on that settlement

from Meta, it looks like they're ready to move forward and invest in Texas. And my understanding is that Meta did not necessarily admit any wrongdoing in the settlement. CNBC's Julia Boorstin. Olympic athletes who win medals don't win money from the Olympic Committee, but they can win money from their own countries. Forbes says the U.S. gives gold medal winners $37,500. On Wednesday's watch list, final day of June trading. Earnings are coming from Facebook parent Meta, Boeing, Arm, Qualcomm, and Marriott. We get the ADP jobs report for July on private sector hiring, and we get pending home sales numbers for June. Jessica Ettinger, CNBC.

When you're at your very top speed, it feels like you can run forever. And then there's this one moment where everybody else starts to die, and you're like, I'm not about to die. I'm about to get faster. The Olympics from Paris on NBC and Peacock.