CNBC Business News Update - Market Close: Stocks Plunge, S&P 500 Index and Nasdaq Worst Sellof Since Dec '22, Ford Earnings Disappoint, Chipotle Beat Estimates 7/24/24

Episode Date: July 24, 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 Edinger, CNBC. It was a Wednesday sell-off for stocks. The S&P 500 index and the Nasdaq tanked after tech earnings disappointed. The indexes had their worst day since December of 2022. Let's start with the Dow, down 504 points, one and a quarter percent, back below 40,000. The S&P 500 indexed down 128 points, 2.3 percent. The NASDAQ fell 654 points. That was three and a half percent. Characterize it as a minor tantrum that earnings weren't better, but also just it is this time of year. And today's sell-off is actually on the narrower side. Yes, most stocks are down, but really the thrust of the downside action is coming from a handful of those big names. CNBC's Mike Santoli. And here's CNBC's Bob Pisani.

This is really kind of normal, believe it or not. Mid-July is when the market traditionally has a tough time. The summer roughness all the way through October, so it's sort of on cue. Ford shares fell in after hours trading Wednesday on disappointing quarterly results. IBM shares were higher after hours on its quarterly results. And Chipotle reported a decent quarter. Its shares popped 7% after hours. Tesla shares tanking 11% after the company had an earnings miss. Its profit plunged 45% in the last quarter. And some investors are worried that CEO Elon Musk's public statements about things other

than his businesses have tainted the brand. You have to wonder whether his political tilt is impacting in some way. Sometimes I do wonder on the sales front. CNBC's David Faber. The french fry indicator also spooked investors Wednesday. Investors watched Lamb Weston. It makes french fries. It had a disappointing quarter, said the restaurant business overall is slowing. They're not buying as many french fries. Lamb Weston lost a quarter of its value Wednesday, sent many restaurant chain stocks lower from Wingstop to Shake Shack to Cheesecake Factory, Cracker Barrel, Bloomin' Brands, the parent of Outback Steakhouse. And that's just to name a few. Lamb Weston is really everybody. It's a great measurement.

All restaurants, no matter if it's the high-end steakhouses or a rainforest cafe in above a Gump, we all use French fries. And if they're down, the restaurant business is down. And what happened is exactly true. And the consumer was strong for so long, but we're just feeling it everywhere now. That's Landry's CEO, Tillman Fertitta. Landry's is also the parent of a number of steakhouse chains. He says they're feeling the steak effect of consumers not shelling out the cash like they were. We sell as many french fries as anybody,

but having Mastro's, Martin's, Del Frisco's, Ketch, Palm, the Strip House, that's the steak effect. Steaks serving U.S. Prime are high end, and so just like the french fry effect, we're feeling the steak effect right now that people don't want to go out and spend $70, $80, $90 for a piece of meat.

The full interview with Landry's CEO Tillman Fertitta at CNBC.com. On Thursday's watch list, it's all about economic growth. The first look at second quarter GDP, gross domestic product. We also get durable goods orders for June. Things made to last a long time like airplanes and washing machines. We find out how many people apply for unemployment benefits and earnings are coming from American Airlines and Southwest Airlines. Plus Honeywell and Norfolk Southern. Jessica Ettinger, CNBC. Squawk Box from Paris. Don't miss exclusive interviews. Highlights from the games.

Starts July 29th. CNBC.