CNBC Business News Update - Market Close: Winning Week for Stocks, Consumer Sentiment Dips, Target Makes Pride Month Changes 5/10/24

Episode Date: May 10, 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 winning week for the major averages. And the Dow is on an eight-day winning streak, its longest since last year. On Friday, markets were mixed, the Dow up 125 points, the S&P 500 index up eight, the Nasdaq was down five points. From that six percent correction, we've rallied about five percent back almost to the old highs over the course of the last three weeks or so. We've had a pretty good earnings season. Federated Hermes, Phil Orlando on CNBC. On Friday, companies who shares at fresh all-time highs include American Express, Goldman Sachs, General Dynamics, Chipotle, Colgate-Palmolive, and Procter & Gamble. Consumer sentiment dropped to a six-month low. In the new University of Michigan survey,

but economists note Americans' wages are still rising, offering a healthy offset to how they're feeling and they're still spending. That initial rate of sentiment falling in May as inflation expectations rose. Sentiment down 10 points from April, but still higher than it was a year ago. This after big names like Starbucks, Yum! Brands, and even Amazon noted more cautious spending. CNBC's Kelly Evans. After a number of companies complained with their quarterly earnings results about consumers pulling back, here's what MasterCard sees in its spending pulse data from its credit cards. They are stretched a little bit. They're stressed. The overall consumer is shopping.

You're seeing growth. You saw a very healthy online number at plus 7%, but you're also seeing a slowing down in the overall rate of spending. Apparel, surprisingly, is continuing to grow at 2%. I thought it was very interesting that the electronic space is continuing growing at 6%. That's saying that there's probably a replacement cycle that's beginning.

But having said that, you're seeing some weaknesses. Home improvement, furniture are showing real weakness at minus 5, and that's indicative of the slowing housing market. MasterCard's Steve Sadov on CNBC. McDonald's working to offer a $5 value meal. Bloomberg reporting the chain needs to lure price-sensitive consumers back. Target stores displaying fewer rainbow items next month as the chain responds to anti-inclusive pressure from customers. Target is planning to cut LGBTQ themed merchandise from some of its stores during Pride Month in June.

That's according to a Bloomberg report that said it is a response to the backlash that hit sales last year. Target will examine store-level data to decide which physical locations will actually carry those products. Last year, Target was forced to remove some of the items from the Pride Month collection after facing customer backlash and confrontations between customers and employees in some stores. CNBC's Becky Quick. Hollywood bracing for a good but not great summer movie season as the unofficial start is just about two weeks away with the Memorial Day holiday weekend. The summer box office is seen as the most important time of the year for Hollywood. It's when big budget investments pay off and build franchises. Year to date, the box office is down 21% from last year, according to Comscore. Now, there are some

big franchise releases coming, including Deadpool and Wolverine and Inside Out from Disney and Despicable Me 4 and Twisters from Universal. But there is no indication of a phenomenon like last summer's Barbenheimer. CNBC's Julia Borsten Universal is a sister company to CNBC. On the coming week's watch list, lots of data, especially on inflation, including the CPI, the Consumer Price Index. That comes out Wednesday. Earnings will begin coming from big retailers in the coming week, like Walmart and Home Depot. Jessica Ettinger, CNBC.