CNBC Business News Update - Market Close: Stocks Mixed, Rental Home Price Gouging in LA, No More Hanging Out At Starbucks Without Buying Something 1/13/25

Episode Date: January 13, 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 Edinger, CNBC. Wall Street opens Tuesday morning after a mixed day for the markets as bond yields were higher, hovering near a 14-month high. And investors rotated out of some of the big tech names like NVIDIA and Palantir. The Dow soared up 358 points on Monday, eight-tenths of a percent. It was led higher by shares of UnitedHealth, which were up almost 4%. The S&P 500 index finished in the green up nine points. It was the NASDAQ that was down 73 points. NVIDIA shares were down almost 2%.

Some investors say a reset is on. It's already happening, right? If you look at just the S&P 500, maybe you'll miss it. It's off 4% all-time highs. But the median stock is now down about 15% from its 2024 high. But J.P. Morgan's Gabriela Santos says it's not bonds or inflation that's rattling investors. She has another view about what's happening with the markets. Really, I think we're all bracing for a week from now after the inauguration, the flurry of information we're going to get.

And that, of course, reprices assets across the board. The L.A. wildfires continue as winds pick up again, and rental homes are in critical short supply for families who've lost everything. We're hearing some price gouging stories. People are desperate for housing right now, especially rental housing. Many people who listed their homes have withdrawn the listing and instead decided to rent it out. And they're trying to get top dollar for it. We haven't aggregated any quantitative data on it yet, but anecdotally, you hear about people suddenly asking for double the amount of rent.

It's just going to get much harder now because so many people are displaced. Redfin CEO Glenn Kelman on CNBC. The FTC is out with a warning. Scammers trying to profit by listing rental homes that don't exist, taking high application fees and then disappearing before the would-be renters even know what happened. Some fire victims are getting homes thanks to their insurance companies. At least one insurer told me they preemptively signed leases on 100 homes, anticipating a housing shortage for their clients. To the massive problem of being underinsured, multiple experts in the insurance and real estate industry have told me that homeowners just weren't able to get adequate coverage through the fair plan. That's the state insurer of last

resort. The payouts are capped at $3 million. So that won't begin to cover the rebuilding for some of these homes. The cost for private insurance was so high that many homeowners may have opted just to take the risk if they didn't have a mortgage that required them to have insurance. CNBC's Contessa Brewer. Netflix cracked down on password sharing. Costco cracked down on membership card sharing. And now Starbucks is cracking down on sharing its cafes with people who don't buy anything. That does mark a shift of the prior policy in place for seven years that allowed the public to stay in cafes or use the bathroom regardless of whether they bought anything. Now, this, of course,

follows Brian Nickel taking over as CEO on September 9th of last year. CNBC's Pippa Stevens. On Tuesday's watch list, we get the latest on inflation at the wholesale level with the producer price index. We find out how small business owners are feeling about the economy with the National Federation of Independent Business Survey. Boeing reports its most recent plane delivery numbers and JPMorgan Healthcare Conference is on. Jessica Ettinger, CNBC. Earnings season, the quarterly numbers as they break. The scorecard for the American economy. Earnings season on CNBC.