CNBC Business News Update - Market Close: Stocks Rally But No "Santa Claus Rally," Alcohol Increases Cancer Risk, Starbucks Launches Winter Menu 1/3/25

Episode Date: January 3, 2025

I'm Jessica Ettinger, CNBC. Wall Street opens Monday morning after a Friday rally for stocks, but no Santa Claus rally. Here's CNBC's Mike Santoli with the call at the close. The S&P 500 up about one and a quarter percent. It is, of course, going to now fall short of a gain over that Santa Claus rally period. It does end today, and we would have needed about another 40 points in the S&P to get positive. The Dow soared Friday, 339 points, eight-tenths of a percent, led higher by NVIDIA shares up 4.5%. The S&P 500 index was up 73 points, 1.25%.

The NASDAQ up 340 points, 1.7% on Friday, and it wasn't good enough. Monday begins what would have been the first full trading week of the year, but the markets will be closed on Thursday, as is tradition, for the National Day of Mourning and funeral for President Jimmy Carter. GM and Ford reported their best annual U.S. sales since 2019, as Americans bought American-made vehicles last year. Electric vehicle maker Rivian shares were higher. It actually met its 2024 production target after it lowered projections earlier in the year.

Alcohol-related stocks fell Friday. The U.S. Surgeon General issued a serious warning. A cancer warning. The U.S. Surgeon General issued a new advisory linking alcohol as the third leading preventable cause of cancer in the U.S. behind obesity and tobacco, placing a causal link between alcohol consumption and increased risk for at least seven types of cancer, including liver, mouth, and throat, regardless of alcohol type, beer, wine, or spirits. He's calling for new labels on alcohol, warning of cancer risks. CNBC's Brandon Gomez. JetBlue is being fined $2 million by the Department of Transportation for chronically delayed flights.

One year ago, an Alaska Airlines jet suffered a door plug blowout on a Boeing 737. One year later, Boeing believes that it is making progress when it comes to improving its manufacturing processes. They've addressed employee concerns about manufacturing processes. They've cut down on the amount of traveled work. That's work that is not done in a certain position as the plane is being manufactured. And they say, you know what, we'll come back and do that later on. That has long been a complaint of the workers on the line. They're saying that's your quality on. That has long been a complaint of the workers on the line there saying, that's your quality control.

That has been reduced dramatically. CNBC's Phil LeBeau. The Nippon Steel purchase of U.S. Steel blocked by President Biden, citing national security. A statement from U.S. Steel and Nippon Steel in reaction to President Biden officially terminating the deal, which was his right after CFIUS was deadlocked on what to do over national security. And it's a feisty statement here. They're shooting back.

We are dismayed by President Biden's decision. The president's statement and order do not present any credible evidence of national security issues, according to the companies. They promise this fight is not over. CNBC's Sarah Eisen. Starbucks launched its winter menu. It added cortado for the first time, a Spanish type of espresso beverage. It uses steamed milk to cut the intensity of the coffee.

Apple TV Plus, free to stream through Sunday. On Monday's watch list, NVIDIA's CEO will deliver the Consumer Electronics Show keynote address in Las Vegas. Jessica Ettinger, CNBC. Get a head start on 2025 with the hottest tech event, CES, the Jobs Report, and meet the future of biotech and pharma at JPM Healthcare and the meeting of world leaders in Davos. Plus, the first Fed decision of the year, CNBC.