CNBC Business News Update - Market Midday: Stocks Higher, Dow Up 500 Points, Ford Shares Tank, Economic Growth Hot in Q2 7/25/24

Episode Date: July 25, 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, Wall Street clawing back. Some of yesterday's losses, the Dow soaring up 511 points, one and a quarter percent, solidly above 40,000 again. The S&P 500 index up 53 points, that's 1%. And there goes the NASDAQ up 163 points, nine tenths of one percent as it claws back some of yesterday's losses. Some investors finding the dip as a buying opportunity. Companies whose shares have hit all time highs today include Fiserv, Willis Towers Watson, Drugmaker AbbVie and Drugmaker Amgen. Ford shares on pace for their worst day since 2009, down 16% this afternoon.

It sold more cars in the quarter, but had to make so many repairs on cars it already sold that the numbers were bad. Ford, among others, may have to start aggressive discounts, too, as dealers have too much inventory sitting on lots. It's really that. Look, the fear that pricing is about to really come down hard. Inventory levels for 94 days. Inventory should be around 50 to 60.

You got a bunch of dealerships with a lot of cars on stock. And the fear is they're going to have to discount them heavily to get them on. RBC's Tom Narayan on CNBC. U.S. economic growth came in hotter than forecast in the second quarter. First look at second quarter GDP, better than expected, 2.8 percent, 2.8 percent. We're expecting 2 percent. CNBC's Rick Santelli, the first look at GDP gross domestic product shows the U.S. economy solidly growing, even with interest rates holding higher. And looking deeper into that GDP report, some good news on inflation. There's some really good things in this report. A huge decline in the

inflation numbers from the prior quarter that has to make the Fed think that it's at or close to a point that it could be cutting interest rates. And the consumption numbers are okay. Consumers seem to be holding up here. CNBC senior economics reporter Steve Leisman. Durable goods orders came in weaker than expected for June. These are orders for things made to last a long time, but you take out aircraft orders and the number jumped, highlighting Boeing's struggles. Southwest Airlines coming off a disappointing quarter and a profit plunge of more than 40 percent with a big change for flyers. Starting next year, Southwest Airlines for the

first time in its 57 years of flying will be offering assigned seating. It will also be offering for the first time ever business class seats with extra leg room. So you're looking at a differentiated cabin as opposed to everything that we've seen since 1967 on a Southwest Airlines plane, which is one type of seat throughout the entire plane, no assigned seating, clearly a response by the Southwest management to the pressure that they're facing from Elliott management, the activist group, which has said, look, they must do better. Bob Jordan and Gary Kelly should be fired. That's the opinion of Elliott Management. CNBC's Phil LeBeau.

Berkshire Hathaway has dumped out of $2.3 billion worth of Bank of America shares in a six-day sale. Warren Buffett's company now holds a 12% stake in that bank. The trimming may be profit-taking. B of A shares up more than 25% for the year, compared to about 14% for the S&P 500 index. Jessica Ettinger, CNBC. Squawk Box from Paris. Don't miss exclusive interviews. Highlights from the games.

Starts July 29th, CNBC.