CNBC Business News Update - Market Close: Stocks Mixed, OpenAI Getting Into Search Sends GOOG Lower, Ford Worst Drop Since 2008 7/25/24

Episode Date: July 25, 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 Friday morning after a volatile day for stocks. At one point, it looked like the major averages would recover some of Wednesday's losses, but in the end, it was not to be. The Dow was in the green, up 81 points, but still closed below 40,000. The S&P 500 index, down 27 points, a half percent. The NASDAQ down 160 points, almost 1%. OpenAI getting into the search business and in Google parent alphabet shares lower.

And that really helped drag that NASDAQ down. Here's what OpenAI is announcing today. It's called SearchGPT. That's going to be a search engine powered by OpenAI's AI models. Right now, they're just calling it a prototype. You can't use it right now, necessarily. It's not launching publicly. Now, OpenAI says they're partnering with publishers and other web creators to give them proper credit in their searches. This is very similar, in my view at least, to the popular AI search engine called Perplexity. That's another hot AI startup backed by big names like Jeff Bezos.

CNBC's Steve Kovac. Ford shares plunging 18% after an earnings miss for the last quarter. It sold more cars but had to repair so many it already sold that the numbers just weren't working out. Plus, Ford may have to aggressively cut prices soon. It's really that. Look, the fear that pricing is about to really come down hard. Inventory levels for Ford, 94 days. Inventory should be around 50 to 60. You got a bunch of dealerships with a lot of cars on stock,

and the fear is they're going to have to discount them heavily to get them off. RBC's Tom Narayan on CNBC. U.S. economic growth came in hotter than forecast in the second quarter. First look at second quarter GDP, better than expected, 2.8 percent, 2.8 percent. We're expecting 2 percent. CNBC's Rick Santelli, the first look at GDP, gross domestic product, shows the U.S. economy solidly growing, even with interest rates holding higher. And looking deeper into that GDP report, some good news on inflation. There's some really good things in this report. A huge decline in the inflation numbers from the prior quarter that has to make the Fed think that it's at or close to a point that it could be cutting interest rates.

And the consumption numbers are okay. Consumers seem to be holding up here. CNBC senior economics reporter Steve Leisman. Durable goods orders came in weaker than expected for June. These are orders for things made to last a long time. But you take out aircraft orders, and the number jumped, highlighting Boeing's struggles. Southwest Airlines coming off a disappointing quarter and a profit plunge of more than 40 percent with a big change for flyers. Starting next year, Southwest Airlines for the first time in its 57 years of flying will be offering

assigned seating. It will also be offering for for the first time ever, business class seats with extra leg room. So you're looking at a differentiated cabin as opposed to everything that we've seen since 1967 on a Southwest Airlines plane, which is one type of seat throughout the entire plane, no assigned seating. CNBC's Phil LeBeau. On Friday's's watch list we get the latest on inflation with the pce for june earnings are coming from colgate palm olive and 3m the paris olympics opening ceremony is on new in theaters disney marvels deadpool and wolverine jessica edinger cnbc squawk box from paris don't miss exclusive interviews highlights from the games starts july 29th cnbc