CNBC Business News Update - Market Midday: Stocks Higher, Economic Growth Solid In Q3, ADP Says A Stunning 233k Jobs In October 10/30/24

Episode Date: October 30, 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. Major averages all higher this afternoon on Wall Street. The Nasdaq hit a fresh all-time high as it builds on the one it opened with. The Dow's up 200 points now, half percent being led higher by shares of Verizon, which are up almost 4 percent. The S&P 500 index up 16 points. The Nasdaq now up 44 points. Companies whose shares have hit fresh all-time highs this afternoon include Verizon, Fox News parent News Corp, Garmin, Visa, and Wells Fargo. The U.S. economy grew at a solid 2.8 percent pace in the third quarter. Slightly disappointing though in the new GDP report on gross domestic product. Second quarter growth was 3%. This was the first read for Q3.

There are two more to come. Inflation came in at 1.5% for the third quarter in the new personal consumption expenditures price index. That's the Fed's preferred inflation gauge, and that's below the Fed's 2% target. Nearly a quarter million new jobs were created in October in the new ADP report on private sector hiring. It's a blowout. For the private sector, up 233,000. That's against a forecast of just 113,000. Now there's the non-farm payroll estimate for Friday, which is government and private sector at 100, and I don't know what the street does with that. CNBC senior economics reporter Steve Leisman. ADP counts strikers differently than the government.

And there are 30,000 Boeing workers out on picket lines. Here's ADP chief economist Neela Richardson. This is the most important point. The economy is having its cake and eating it too. It's creating all these jobs while at the same time wage growth is coming down and that's good news for inflation. So we're really in a sweet spot in October. I don't know how long it lasts but I'll take it this month. We get the government's, the Labor Department's October employment report on Friday morning. Mortgage demand stalled last

week as rates are now up almost a full percent from where they were at the end of September. But mortgage rates are still down more than a full percent from where they were one year ago. Eli Lilly shares tumbled 10 percent after the drug maker missed estimates and cut its profit outlook. Lilly makes the diabetes and weight loss drugs Manjaro and Zepbound, which Lilly says are no longer in shortage, but sales disappointed. Demand for the drugs is high. Lilly's urging the FDA to crack down on compounding pharmacies selling unapproved, cheaper versions of drugs containing terzepatide. That's the active ingredient. Many would-be patients, however, cannot get their health insurance plans to pay for that. The real issue is coverage of these medications on insurance. I think that's really what's happening is people want to buy a lower-priced product,

even though it's lower quality. It's not a real medicine. It's not an approved medicine. That's what compounding is. What we need to do is bring those people into the insurance system. And if we have other diseases like diabetes or hypertension, we expect our medicine to be covered by insurance. Why is this different?

That needs to change. I think that's the primary thing I'm worried about. Eli Lilly, CEO, David Ricks on CNBC. Disney's Moana 2 out for Thanksgiving. And its first day of advance ticket sales were the highest of any animated film this year. Fandango says it sold more on day one than Disney Pixar's blockbuster Inside Out 2. Jessica Ettinger, CNBC. This campaign is all about business and money.

Live from the New York Stock Exchange. If you were going to watch this election happen, you'd want to watch it through the eyes of CNBC. November 5th, CNBC.