CNBC Business News Update - Market Midday: Bond Yields Up, Stocks Down, American Airlines Shares Lower, ConocoPhillips To Buy Marathon Oil 5/29/24

Episode Date: May 29, 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. Stocks are selling off on Wall Street this afternoon as bond yields are higher. The Dow is down 352 points, almost 1%, sitting at 38,500. The S&P 500 index down 32 points, 0.6%. It's below 5,300. And the Nasdaq down 71 points. That's four tenths of a percent. It is below 17,000, where it opened this morning at a record high. It has since pulled back. Companies whose shares have hit fresh all-time highs today include T-Mobile, Decker's Outdoor,

and DaVita. It's all about bond yields being higher as investors are still waiting for the Fed to possibly cut interest rates. And it doesn't appear to be happening anytime soon. Every time we get excitement over the possibility, we get a decline in yields, and then we get a reality check, we see a backup in yields, and we have a 10-year yield back above four and a half percent, which seems to be sort of a trigger line. Blakely's Peter Bookvar on CNBC. Abercrombie & Fitch is a hot brand again. It posted its strongest first quarter ever as sales jumped 22%. Dick's Sporting Goods raised its guidance and says shoppers are spending more on sneakers and athletic gear.

American Airlines shares were tanking 12% in early trading today after it cut its outlook for the current quarter. This is a pretty big miss on the revenue. You know, American just a month ago was guiding for really strong, maybe not strong, but not this bad, for their unit revenue growth and to come out and essentially double what the unit revenue decline is going to be year over year. That's kind of not what we're seeing from other major airlines. So there is kind of a divergence there and investors are trying to parse this today. CNBC's Leslie Josephs. Major oil deal today. ConocoPhillips buying Marathon Oil. It's an all-stock deal worth $17 billion. It will bolster ConocoPhillips shale assets. Weekly mortgage

demand dropped to a three-month low last week. The rate on a 30-year fixed home loan ticked solidly above 7% last week. It's back below today. Watching shares of Starbucks today after a report that claimed customers can wait 40 minutes for a drink. Chatter about understaffing? Yeah, and this Bloomberg article about the waiting times. It's suboptimal. It's a suboptimal situation. And the stock but the stocks are going down that much.

People waiting 40 minutes for Starbucks coffee. Now you can read that totally. You can say that coffee so darn good. Has the stock bottomed at this point, though? It's trying. What happened? It's trying to bottom. CNBC's Jim Cramer with David Faber and Carl Quintanilla.

Chewy shares popped on stronger-than-expected quarterly results for the pet products retailer. The Federal Trade Commission lawsuit against Amazon, accusing Amazon of enrolling customers into Prime and charging them when they didn't want to join, can go forward. A U.S. judge is rejecting Amazon's request to dismiss an FCC lawsuit accusing the company of enrolling millions of customers into its paid Prime program without their consent. The lawsuit, which was first filed in June of 2023, also accuses Amazon of deceptive practices,

intentionally making it hard for consumers to cancel their Prime accounts. CNBC's Silvana Hanau. Jessica Ettinger, CNBC. I just love this game. So excited to share with the world. The Olympics from Paris starts July 26th on NBC and Peacock.