CNBC Business News Update - Market Midday: Stocks Higher, Inflation Better Than Expected For May, Fed Interest Rate Decision 2p ET 6/12/24

Episode Date: June 12, 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. Cooler than expected inflation for the month of May. Stocks are in the green on Wall Street this afternoon. Investors are hoping that data become a trend and the Fed is closer to cutting interest rates. The Dow is up 91 points, the S&P 500 index up 60 points, that's more than 1 percent, And the Nasdaq is up 302 points. That's 1.7%. Companies whose shares have hit all-time highs today include Royal Caribbean, Costco, Boston Scientific, HCA, Micron, Microsoft, Apple, and Google Parent Alphabet. Now, the CPI consumer price index showed a 3.3 percent rate of inflation in May. Consumer prices continuing to ease. The internals on this whether it's gas prices, core goods,

insurance. Oh my insurance finally broke. You know you drive your car to work and gasoline is front and center and property casualty but also auto. Now, I thought the most interesting one was on page 17. All items less shelter, minus 0.2. There you go. So it's shelter sticky and everything else is coming down. CNBC Bad Money host Jim Cramer there with CNBC's Carl Quintanilla. Later today, the Fed is expected to hold interest rates right where they are, but investors will be paying close attention to Fed Chair Jay Powell's commentary on the economy after the rate announcement this afternoon. Mortgage demand surged last week during a brief tick lower in mortgage rates. Mortgage rates dropped for much of last week, causing demand to surge nearly 16 percent compared with the previous week. That, according to the Mortgage Bankers Association.

But after a stronger than expected monthly employment report Friday, rates jumped back up again. Homebuyers are not only contending with high interest rates, but also high home prices. Inventory has also been lean. A monthly survey from Fannie Mae found that 86 percent of consumers said now is a bad time to buy a home. CNBC's Diana Olick. The average rate today on a 30-year fixed home loan, 7.1 percent, according to Mortgage News Daily. Big oil got a stark warning from the International Energy Administration. The world will be producing more oil than it needs in the next six years, leading to too much capacity just sitting there. A U.S.-led surge in global oil production is expected to outstrip demand growth

by the end of the decade. It says that that will push spare capacity to unprecedented levels and potentially upend OPEC's market management. The IEA issuing a warning to big oil companies, urging them to make sure that their business strategies are prepared for a supply surplus. The big oil companies that I think they have been diversifying to some extent already. CNBC's Becky Quick. Walmart has launched its store brand of makeup called Pretty Smart with affordable prices, $10 or less for every item. Retail Dive says it's exclusively in 2,800 Walmart stores and online. EV charging cables contain copper wiring inside. Thieves have been targeting those. With copper prices near a record high, stolen cables often disable entire charging stations.

Copper thieves also raiding unguarded construction sites and overhead wires. Jessica Ettinger, 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.