CNBC Business News Update - Market Midday: Slight Gains For Stocks, FDA Warns Bakery On Labels, Rivian Up 20% On VW Stake 6/26/24

Episode Date: June 26, 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 Ettinger, CNBC. Modest gains on Wall Street this afternoon with the Dow turning around. It's in the green, up 13 points, back above 39,000. The S&P 500 index up four points. The Nasdaq now up 73 points. Companies whose shares have hit all-time highs today include Google, Parent Alphabet, and Microsoft. The Food and Drug Administration is warning the maker of Cerely and Entenmann's baked goods not to claim foods contain allergens when they don't.

Bimbo Bakery makes Cerely, Thomas's, Orowheat, and lots of other familiar baked goods brands. And the FDA found the company was listing ingredients like sesame or tree nuts on the labels when those weren't in the foods. And the FDA says food labels have to be truthful. Labeling is not a substitute for preventing cross-contamination. Rivian shares popped as much as 50 percent on an investment from Volkswagen that could hit five billion dollars, which is playing catch up in the electric vehicle business and giving Rivian buyers some reassurance. Volkswagen is going to begin with an initial investment of $1 billion, the additional $4 billion expected to come by 2026. The word game changer being used a lot. Oh, look, I think that the objection has been you can't buy

a car if there won't be a network to fix it after. We see, by the way, how hard it is to fix a Tesla. Well, that's off the table. No one's going to say now, well, wait a second, I can't buy a Rivian. So I think the stock is not up enough. CNBC Mad Money host Jim Cramer with CNBC's Carl Quintanilla. Sixteen Nobel Prize winning economists are warning that a second Trump term would reignite inflation. They've signed an economic risk letter and are warning about the problems with keeping taxes on corporations and the wealthy low or even lower,

imposing universal tariffs on all imports and pressuring the Federal Reserve to reduce interest rates. One top Republican lawmaker says Trump isn't really settled on anything yet. First of all, I'm not sure the blueprint is finalized. I think he's talking about a number of ideas and sort of field testing some of it. House Speaker Mike Johnson on CNBC. Southwest Airlines shares reacting to word the company's cutting its revenue forecast. Southwest Airlines, those shares are down big. This is America's second biggest passenger airline by market value.

It just updated its financial guidance for the quarter. It expects a bigger drop in the key operating and efficiency metric than previously forecast. That revenue per available seat mile, or RASM, is now expected to fall by 4 to 4.5 percent compared to a previous guide. But Southwest still expects to set a quarterly record for operating revenues overall during the quarter. Nonetheless, shares down. CNBC's Dominic Chu. Both mortgage rates and weekly mortgage demand stuck, suggesting a slow summer housing market, much like the spring. Applications for a mortgage to buy a home ticked higher last week, but were down 13% from the same week one year ago. The average interest rate

on a 30-year fixed home loan today, 7%, according to Mortgage News Daily. Target joining Walmart and Amazon with big sales next month. The Target Circle Week starts July 7th. Walmart's Deals sale starts July 8th. And the Amazon Prime Day sale, which is two days, July 16th and 17th. Jessica Edinger, CNBC. The Olympic Games are coming. But first, the best American athletes have to make Team USA. The U.S. Olympic Team Trials on NBC and Peacock.