CNBC Business News Update - Market Close: Stocks Mixed, Russell Up 3% with S&P Down For The First Time Since 2008, Inflation Hits Lowest In 3 Years 7/11/24

Episode Date: July 11, 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 mixed day for stocks. The S&P 500 index and the Nasdaq pulled back from record highs. Investors sold out of high-flying tech stocks. Nvidia shares were down 5%. The Dow was in the green Thursday, up 32 points. The S&P 500 index down 49 points. The Nasdaq plunged 364 points, just about 2%.

Most interesting day of the year. Everybody's going to look at this and they're going to say, what the heck? The NASDAQ's down big. Look at this. The Russell 2000 up 3.6% with the S&P down. Do you know the last time that actually happened? October 2008.

That's how rare that is. This is not negative on tech. This is positive on diversification. That's how rare that is. This is not negative on tech. This is positive on diversification. That's the way to look at this. CNBC's Bob Pisani. Investors are on hold for the start of earnings season. Friday morning, we get results from big banks. There's going to be hope. There's going to be despair. There's going to be beats. There's going to be misses. And you just have to take it. It's probably not all good and probably not all bad. And that is what this earnings season is about. And it's just fantastic to take it. It's probably not all good and probably not all bad. And that is

what this earnings season is about. And it's just fantastic to me. We're finally going to rotate away from everything's been all economic. We've had no earnings, really. And I'm really excited for Q2 to start ramping up here in earnings season. G Squared's Victoria Green on CNBC. Inflation was down again in June, sitting at about 3% now, way down from the more than 9% two years ago. We are convincingly on a path to achieving more normal levels of inflation. And core inflation is the lowest in three years. Housing showed some softening. We've been waiting to see that. National Economic Council's Lael Brainard on CNBC.

Mortgage rates with a dramatic drop on that CPI report from seven down to 6.85 percent in one day for a 30-year fixed home loan, according to Mortgage News Daily. PepsiCo earnings beat quarterly estimates, but Americans are pushing back. Pepsi saw weaker demand for soda, its Quaker Foods, and Frito-Lay products, too. PepsiCo, I think that they raised price too much. The consumer is balking at the price of potato chips. Pepsi volume down 3.5, Frito volume down 4. But they made it up. They made it all up in price. I've got to tell you, I think they literally have to cut price a little bit.

CNBC Mad Money host Jim Cramer with CNBC's Carl Quintanilla. Delta Airlines shares were down 5% Thursday. It's taking about a $100 million hit because Americans are avoiding Paris. And Delta's the top airline from the U.S. to France. People don't want to be there during the Olympics if they're not going to the Olympics. The CEO tells CNBC these low airfares for the summer because there are too many airline seats. Those probably won't be around for the fall. The industry brought more capacity for this summer between June and August. You see

the discounters particularly discounting heavily, but the industry is already correcting for the oversupply so that by the end of August, we expect in September, our domestic unit revenues are going to be back inflecting positive once again. Delta CEO Ed Bastian on CNBC. On Friday's watch list, earnings season begins. We get the latest on inflation at the wholesale level with the PPI. We get a fresh read on consumer sentiment. The American Century Celebrity Golf Tournament starts in Lake Tahoe. New in theaters, Gold Dove's horror film Lumina,

Neon's crime horror thriller Long Legs, and Columbia's comedy romance Fly Me to the Moon. 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 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 starts July 26th on NBC and Peacock.