CNBC Business News Update - Market Close: Stocks Rally, Tik Tok Ban Upheld, Novo Nordisk Faces Medicare Price Negotiation for Ozempic 1/17/25

Episode Date: January 17, 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 Eppinger, CNBC. Wall Street opens Tuesday morning. Monday, Wall Street's closed for the Martin Luther King holiday. A rally Friday, bond yields fell. The Dow soared 334 points, up three-quarters of a percent, led higher by shares of NVIDIA, which were up 3%. The S&P 500 index was up 59 points, exactly 1%. The NASDAQ up 291 points on Friday, 1.5%. Companies whose shares hit fresh all-time highs on Friday include JPMorgan Chase,

American Express, Discover, Goldman Sachs, GE, Vinova, and Williams-Sonoma. We're 11 trading days into 2025. If you have an S&P 500 index fund in a brokerage or retirement account, like a lot of people, you're up 2% so far this year. Chinese-owned social media app TikTok must be banned or sold to an American company to comply with U.S. law. The Supreme Court upheld the law on Friday. Congress banned the app as a national security threat. It's on the phones of about half the U.S. population, a powerful propaganda tool that could be used by the Communist Party to sway American voters. And the app data mines the people who have it. Most believe the Biden administration will not enforce the ban and nothing will happen until at least after the

Martin Luther King holiday when Donald Trump is officially president. Monday is a federal holiday and so therefore you're seeing an argument from the Biden administration that hey we'll just leave it to the next business day for the new executive branch to enforce this law. And some investors are betting on Elon Musk's involvement in TikTok. Look mean, this is a game of high stakes poker. Trump's probably going to do a 90 day stay, you know, as they try to figure out how they could ultimately get this sold. This is a very important matter, especially in terms of U.S.-China relations. And that's why the last thing that's going to happen here is that TikTok ultimately gets banned. They're going to work something out behind the scenes. We think Musk is going to play a key role in terms of X and ultimately could buy this $40 to $50 billion. I believe it would be the price tag without the algorithm. Wedbush Securities' Dan Ives on CNBC. Novo Nordisk

ADRs were down Friday. Those are American depository receipts. They're like shares in a company when it's foreign-based. Novo is based in Denmark. Novo Nordisk may soon be subject to negotiation for Medicare instead of charging the government full price for its blockbuster diabetes injection Ozempic, weight loss drug Wegovi, and diabetes pill Rebelsis, all considered the same because they have the same active ingredient, semaglutide. Novo's obesity drugs are going to be included in the Medicare negotiating program. Remember, this was under the Inflation Reduction Act. That potentially limits the upside on what is a very expensive, what is it, a thousand a month drug? I think that there are a lot of people who felt that this had to happen. No one thought that they would be able to just run a market. CNBC's Sarah Eisen with Mad Money host Jim Cramer. Prices at the pump ticking higher for this

long holiday weekend and for the first time since last summer, oil prices were up for four straight weeks. AAA says the national average now for a gallon of regular, $3.11, up about eight cents over the past month. On Tuesday's watch list, all eyes on what will happen with TikTok. Earnings are coming from 3M, Charles Schwab, D.R. Horton, Netflix, United Airlines, and Capital One. Also Tuesday, the World Economic Forum is on in Davos, Switzerland. Jessica Ettinger, CNBC. CNBC.