CNBC Business News Update - Market Midday: Stocks Higher, Jobless Claims Hotter, McDonalds Marketing Changes 5/9/24

Episode Date: May 9, 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 in the green this afternoon with the Dow on pace for a seventh winning day in a row, its longest winning streak since last year. The Dow is up 162 points. That's four-tenths of one percent. The S&P 500 index up 11 points, a quarter percent. The Nasdaq up 14 points this afternoon. Companies whose shares have hit

fresh all-time highs today include Amazon.com, Goldman Sachs, Emerson Electric, U.S. Foods, and GoDaddy. Initial jobless claims came in hotter than expected. We're looking for a number around 210,000, 231,000, the largest amount of initial claims since the last week in August. CNBC's Rick Santelli. The insurance industry is on alert every day for the past 14 days. A tornado has touched down in the U.S. The outbreak causing multiple millions in damage. Insurers are bracing for this climate change reality as the new normal.

Premiums will reflect it. Warner Brothers Discovery shares lower on a disappointing quarter, but streaming is doing better, and it's teaming up with frenemy Disney for a streaming bundle. Streaming was a bright spot. The company added 2 million direct-to-consumer streaming subscribers, and streaming ad revenue grew 70% in contrast to the 8% decline in TV networks ad revenue. CEO David Zaslav explained the intention of this new bundle of Macs and Disney Plus and Hulu

that's now in the works. We expect this product will help increase retention and lower churn and thus support higher customer lifetime values. We don't have details on pricing or a launch date for this bundle, but Zaslav called the price both attractive and reasonable. CNBC's Julia Borsten. McDonald's may be advertising less on TV and radio and more online and on your phone. In a marketing change at the company, rethinking its legacy approach, think print and TV commercials. That's according to a memo viewed by CNBC. The memo suggests that existing marketing funds for traditional advertising may be redirected toward digital marketing. Brands, of course, are competing fiercely for loyalty engagement as these

customers tend to visit more and spend more. They can be targeted with certain offers, menu items specifically available on the digital app. This is just really a key theme that we've seen with value being such a focus. Really important that brands focusing here so that they can engage with these customers and again, get them in their doors, spending more frequently and targeting them, really importantly, with certain offers and deals. CNBC's Kate Rogers. More speculation over what might happen with struggling Paramount Global, the parent company of CBS and Paramount Pictures.

The New York Times is reporting that if Sony Pictures and Apollo Global's $26 billion bid for Paramount succeeds, the two plan to break the media company up. The Times says that could include selling off the CBS broadcasting network, cable channels, as well as its Paramount Plus streaming service, but that the new owners would keep the movie studio. CNBC's Silvana Hanau. AMC Entertainment shares lower after the movie theater chain reported both attendance and revenue

dropped in the last quarter compared with the same quarter last year. Jessica Ettinger, CNBC. It's the first, CNBC.