CNBC Business News Update - Market Close: Stocks Sell Off, July Job Creation Below Forecast, Mortgage Rates Lowest In A Year 8/2/24

Episode Date: August 2, 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 Wall Street opens Monday morning after a big ugly sell-off Friday the July jobs number came in weaker than expected bond yields fell mortgage rates dropped the Dow had its worst day since February of 2023 the Dow and the S&P 500 index for the week lost two percent and the Nasdaq lost three percent for the week. Here are the Friday numbers. The Dow down 610 points. That was a recovery. It had been down 900 points. The S&P 500 index was down 100. Both averages down more than 1.5%. The NASDAQ on Friday fell 417 points. That was almost 2.5%. When a correction happens, it always feels like it's something worse. 100% of the time, it feels like it's going to be a bear market.

There's always a reason for it. This time, it's the kind of lousy spade of economic data that we've had. This is what a correction looks like. When you've got profit growth, when you've got GDP growth continuing, when you've still got job growth going on. It's hard to get really bearish. Serity partners Jim Labenthal on CNBC. And even with the major averages in a sea of red on Friday, there were plenty of companies that bucked the trend and their shares hit fresh all-time highs, including T-Mobile, Colgate, Palmolive, Coca-Cola, Drugmaker, AbbVie, McKesson, Regeneron, Lockheed Martin, Raytheon, Duke Energy, ConEd, PSC&G, and Southern Company. Might be easier for would-be homebuyers to look at houses.

Mortgage rates are at their lowest in more than a year. The average rate on a 30-year fixed home loan, 6.4%. We haven't seen that since April of 2023. About a third of the drop in the Dow on Friday was because of Amazon. Its shares tanked on disappointing quarterly results. Amazon fell 9% on Friday. The U.S. added 114,000 new jobs last month. Normally that would be okay, but after such strong job creation post-pandemic, it was well below expectations. The unemployment rate moved up to 4.3. That is the warmest it's been since October of 21. CNBC's Rick Santelli, the Labor Department

notes that Hurricane Beryl knocked out power to more than two and a half million homes and businesses in Texas in early July, possibly impacting the numbers. Not that there's a lot of firing or job loss going on. There's not a lot of hiring. This is a weak report. Used to be a pretty normal level, 114 we'd be pretty happy with. I think we're at this phase right now where the catch-up hiring, especially in the health and education sector and in the government sector, that at least in the month of July, has come to an end.

CNBC senior economics reporter Steve Leisman. And here's Urban League president Mark Morial on CNBC. We can't over-interpret one month of jobs data. So while the jobs data is down, the growth rate in the second quarter was almost three percent because it's one month. And we've seen months down before over the last three years. And then they bounce back. On Monday's watch list, we get earnings from Tyson Foods, CSX, Yum China, Lucid Group, and Palantir. We get the services, PMI, the Purchasing Managers Index. Fortune will reveal the annual Fortune Global 500 ranking of the world's largest

corporations, according to Revenue. 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'm not about to die. I'm about to get faster. The Olympics from Paris on NBC and Peacock.