CNBC Business News Update - Market Close: Stocks Slide On Mideast Resolution Worries, Consumer Caution Helps McDonald's, Hurts Shake Shack, Whirlpool Slumps As It Cuts Forecast And Suspends Dividend 5/7/2026

Episode Date: May 7, 2026

The latest in business, financial, and market news and how it impacts your money, reported by CNBC's Peter Schacknow. Hosted by Simplecast, an AdsWizz company. See https://pcm.adswizz.com for information about our collection and use of personal data for advertising.

I'm Peter Shack now, CNBC. Though upbeat earnings have been providing a solid foundation for the stock market lately, investors are still focused on the latest developments between the U.S. and Iran. That was evident in today's trading when reports of stalled progress between the two countries erased early gains and sent stocks to their first losses in three days. The Dow fell 314 points to close at 49,0597. The S&P 500 was 4 tenths of a percent lower or 28 points. The NASDAQ fell 33 points or a tenth of one. percent. Higher gasoline prices resulting from the Iran war have translated into far more caution where consumer's spending is concerned. That was evident in quarterly results from restaurant chains McDonald's and Shake Shack. McDonald's share has ended the day near break-even despite the overall market slump as its quarterly earnings beat estimates. Not so much with Shake Shack, whose shares plummeted 28 percent as it missed Wall Street forecasts. CNBC reporter Brandon Gomez says in these two

cases, it was a matter of price with a McDonald's value meal costing $6 to $8. Shake Shack is a different story. You're closer to $15 or $20 lunch occasions, more discretionary premium, and more exposure when consumers start pulling back. Now, management pointed out to a roughly $12 base meal as value, but the brand still sits higher on the curve. Now, that shows in how they're trading is still value like a growth company, so when growth slows, the reaction gets amplified as you saw today. First time claims for jobless benefits rose 10,000 last week to 200,000, but ongoing claims fell. Those numbers come ahead of the government's April jobs report tomorrow morning, with economists expecting job additions of 55,000 for the month. Shares of appliance maker Whirlpool slump 12%.

The company slashed its annual forecast by nearly half and suspended its dividend. Whirlpool says the Iran war has led to a, quote, recession-level industry decline that's shaken consumer confidence. Peter Shack now, CNBC.