CNBC Business News Update - Market Midday: Stocks Higher, Consumer Sentiment Higher, Gas Prices Lower 5/24/24

Episode Date: May 24, 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, Wall Street's In The Green this afternoon as stocks try to claw back some of yesterday's losses. The Dow is up 104 points, three-tenths of a percent. The S&P 500 index up 36 points, that's almost three-quarters of a percent. It's above 5,300. And the Nasdaq up 173 points. That is more than 1% this afternoon. Companies whose shares hit fresh all-time highs today include Decker's Outdoor, Microchip Technology, and Costco. Consumer sentiment better heading into the long Memorial Day holiday weekend. So the mid-month read for the headline was 67.4. It now becomes 69.1.

It improved. And if we look at expectations, also improvement. And finally, maybe the most important aspect of all, University of Michigan inflation gauge. The one year mid-month read was 3.5. Now it's 3.3. That is huge. Psychologically, it means a lot. CNBC's Rick Santelli.

Durable goods orders came in stronger than expected. These are orders for things made to last a long time, like washing machines and airplanes. Eli Lilly will invest more than $5 billion in an Indiana plant to expand Manjaro and Zepbound production. Those are two of its blockbuster weight loss drugs. Gas prices are lower heading into the long holiday weekend. The national average at $3.61 for regular. AAA says that's down 5 cents a gallon over the past month. Oil prices are lower too.

U.S. crude back to about where it was at the end of February, about $76 a barrel. TSA says about 3 million people are at or heading to airports today. Go early because TSA was screenings were up 7% yesterday. Bernstein's David Vernon on CNBC. And some analysts say many Americans are just trying to save money any way they can, as some are stretched financially, especially at the lower income levels. We're seeing increased pressure on the consumer going into this Memorial Day and summer season. First of all, you've got the lower end consumer that's pretty much fixed here,

and they're in real stress. Got credit cards maxed out. We think that people are going to spend more time in their cars, make shorter trips, trade down in terms of whatever hotels they use, trade down in terms of restaurants, have more barbecues. The conference board's Steve Odland on CNBC. The Burger Wars may be back. Burger King with a $5 value meal,

just as McDonald's is working things out with franchisees to launch one of its own next month. The BK Your Way meal will include a choice of three sandwiches or nuggets with fries and a drink. Burger King reportedly plans to run the deal longer than McDonald's will. Car insurance premiums have jumped at their fastest pace since the 1970s, but Bank of America says relief could be on the way. The increases were a response to underwriting losses in the industry, and those hits have largely already been passed on to consumers. And now that vehicle prices and parts costs are returning to normal,

premiums can normalize too. New in theaters for the long holiday weekend, Sony's The Garfield Movie and Warner Brothers' Furiosa A Mad Max Saga. Jessica Ettinger, CNBC. The Investing Club. We're not about trading. We're about investing. Get invested. Join the club today. Go to cndc.com slash Jim's Club.