CNBC Business News Update - Market Midday: "Rate Cut Rally" for Stocks, Dow Tops 42,000, August Home Sales Dropped 9/19/24

Episode Date: September 19, 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 by CNBC's Jessica Ettinger.

I'm Jessica Edinger. CNBC. Wall Street is rallying after the Fed announced a half percentage point interest rate cut with more on the way. Lower rates mean cheaper borrowing for both businesses and consumers and the Dow is soaring. It's been hovering around 42,000 hit a fresh record high intraday. It's up 497 points this afternoon, one and a quarter percent. The S&P 500 index up 100 points, almost two percent, and the NASDAQ is now surging 482 points. That's two and three quarters percent this afternoon. This after the Fed announced a half percentage point interest rate cut. With more on the way, lower rates, that means cheaper borrowing for both businesses and consumers. It was the first cut by the U.S. central bank in four years as inflation is down and the Fed wants to keep the labor market in a good spot. I think we saw yesterday the Fed pivoting pretty obviously towards a more future oriented approach to monetary policy. Over the past couple of years, they've been very data-dependent, but the data is basically the

data that's already come in, and that's what they've been looking at and emphasizing. Now, as Chair Powell said yesterday, they're trying to look forward and to avoid a slowing labor market turning into a deteriorating labor market. Harvard Law's Daniel Tarullo on CNBC. August home sales dropped more than expected and prices set a new record high. Tight supply is keeping the pressure on prices. The median price of an existing home sold in August was $416,700. That is up 3.1% year over year. Now, part of that is skewed towards what's actually selling because it's a median. So sales are up significantly for homes priced above $750,000, but down for anything priced below half a million. Still, it is the highest median price for August ever. CNBC's Diana Olick, the average rate on a 30-year fixed rate loan

is 6.1% this afternoon, according to Mortgage News Daily. Fewer people applied for unemployment benefits last week, their lowest level in four months. The job market remains solid. Initial jobless claims, 219,000, much less than we were expecting. 219,000 would be the smallest month-over-month initial jobless claims since the third week of May. CNBC's Rick Santelli. United Airlines says it's definitely getting a lift from Taylor Swift and the Arras tour.

Count United Airlines is another big beneficiary of Taylor Swift's globe-hopping music tour. United's chief commercial officer telling a travel industry forum in New York that the airline sees at least a 25% bump in demand on its flights during the Singers Weekend concerts, with things reverting to normal afterwards. CNBC's Becky Quick. Kohl's is holding a national hiring event today and tomorrow, trying to staff up for the holidays like lots of retailers. One in five U.S. shoppers plans to reduce their holiday spending this year. Research firm Gartner says a third of shoppers will start buying before November, according to Retail Dive. Jessica Ettinger, CNBC. This is the best solution I have ever seen. I want to be in it to win it with you. Shark Tank, tonight starting 7 Eastern, CNBC.