CNBC Business News Update - Market Midday: Dow 40k Historic Level, Major Averages All Hit Record Highs, Walmart Shares At Record 5/16/24

Episode Date: May 16, 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, a celebration on Wall Street this afternoon, Dow 40,000, a record-setting milestone today. Looks like there's some breaking news, so we will pause. I think we touched it. We did it. It is official. Dow 40K. Dow 40K. Almost four years after Dow 30K. CNBC's Carl Quintanilla with CNBC's Leslie Picker.

The major average is all in the green. They opened at record highs this morning. The Dow slight pullback from 40,000 at 39,990, up 81 points. The S&P 500 index up nine points. The Nasdaq's up 19 points this afternoon. Companies whose shares hit fresh all-time highs today include Google Parent Alphabet, Procter & Gamble, Costco, Goldman Sachs, JPMorgan, Chubb, the insurance company Warren Buffett's Berkshire Hathaway has been quietly investing in, and Walmart shares at a record high on its biggest earnings beat in three years. It's winning over high-income shoppers who don't want to spend more on the same thing somewhere else. The prices there are really like Eddie, you know, crazy. They're insane. I mean, you can't believe aisle after aisle the bargains in Walmart. French bread down a dollar, prices down for a private brand soda, big prices down for frozen pot pies. These are just examples.

Boneless, skinless chicken, they are the inflation fighter. CNBC Mad Money host Jim Cramer. Fewer people applied for unemployment benefits last week. Very close to expectations, 222,000. Continuing claims, 1,794,000. That is definitely a little bit hotter than expectations. So we continue to remain under 1.8 million. The last time we were over that was the last week in March.

CNBC's Rick Santelli. Investors watch that continuing claims number because it gives hints on how long it might be taking people to find the next job after they're out of work. The longer it takes, of course, the worse the economy may be getting. But the numbers are strong. Unemployment still near a 50-year low. Meantime, Under Armour, whose shares are sitting at $6 apiece at the open this morning, it says it's cutting jobs, says the retailer. Says sales in North America are forecast to plunge this year. For a company that has had folks like Tom Brady involved in it, currently Steph Curry,

why they haven't been able to break out of this challenging period? Is it a product issue? Is it a distribution issue? The problem is that they don't have a lot of must-have product. I don't know how much product Tom Brady would sell, but I think they may have missed some opportunities with Steph Curry, both from a product and from a marketing perspective over time. Williams trading analyst Sam Poser on CNBC with Squawk Box anchor Andrew Ross Sorkin. This as home retailer Wayfair.com looks to open its first physical store and hire people. Brick and Mortar is making a comeback. The first Wayfair megastore opens next week near

Chicago. Other companies that started online only and eventually built stores include Warby Parker, Everlane, and Figgs. It is round one today at the PGA Championship, one of the majors in professional golf. The winner takes home more than three3 million. Airlines and airports bracing for one week from today, forecast to be one of the busiest ever Memorial Day travel weekends. Jessica Ettinger, CNBC. CNBC. Live ambitiously.