CNBC Business News Update - Market Midday: Stocks Drop But Off Earlier Lows, 30 Yr Mortgage At 6.34 Lowest In More Than A Year 8/5/24

Episode Date: August 5, 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 sea of red this afternoon on Wall Street as stocks plunge, although actually the markets are off their earlier lows. Friday's jobs report came in soft. The Nasdaq is in correction, down more than 10% from its recent all-time high. Japan and Europe sold off. Crypto also down. Bitcoin is around 49,000 today.

It's lowest since February. Let's check the markets. The Dow down 807 points. The S&P 500 index down 126. The Nasdaq falling 478. The major average is all down more than 2% this afternoon. Still in the green for the year, though. And some investors aren't so worried. They

say if you pull back your point of view to the big picture, this could be the buying opportunity investors needed. What's going on in the market right now is a microcosm to what's going on in society. We want to react first. It's kind of fire aim ready. And I think about the talking heads when they used to say same as it ever was, same as it ever was. And I remember August of 1990 when Iraq invaded Kuwait, and my boss at the time thought we were going into a recession. Six months later, the market was rallying again. 97, 98, 99, 2000, 2001, five straight years in a row that the month of August was down.

People are going to hate to hear this, but this is pretty normal. BMO Capital Management's Brian Belsky on CNBC. Mortgage rates are plunging again today, their lowest since April of 2023. The average rate now on a 30-year fixed rate loan just adjusted lower this afternoon by Mortgage News Daily at 6.34%. Rates dropped sharply on Friday, but they had actually been falling all week from 6.81% on the 30-year fix last Monday to 6.4% Friday, and that is the lowest level since May of 2023. The recent high was 7.52% in late April, and home sales have been falling ever since. Buyers were battling not just high interest rates, but also high home prices and a lack of supply.

Now, supply has improved a little bit, but prices are still overheated. CNBC's Diana Olick. Mars is in talks to buy Kelanova, the snack food business spun off from Kellogg, according to reports. Paramount Global's HBO feeling some heat today after what some fans called a disappointing season two finale last night for House of the Dragon, which is the Game of Thrones hit prequel series. Disney, Marvel's Deadpool and Wolverine won the weekend box office. It's zooming toward a billion dollars globally in its first 10 days of release. Universal's Twisters was number two over the weekend, approaching the $200 million mark. Universal's a sister company to CNBC. Jessica Ettinger, CNBC. When you're at your very top speed,

it feels like you can run forever. And then there's this one moment where everybody else starts to die and you're like, I'm not about to die. I'm about to get faster. The Olympics from Paris on NBC and Peacock.