CNBC Business News Update - Market Midday: Stocks Higher, Micron Shares Weigh On Tech Comeback, Mortgage Rates Pop Higher 12/19/24

Episode Date: December 19, 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. Wall Street trying to bounce back this afternoon from yesterday's ugly sell-off for stocks. The major averages are all in the green. The Dow, which plunged 1,100 points yesterday, is now up 205 points. That's a half percent off its earlier highs. The Dow is being led higher by shares of Boeing, which are up 3%. The S&P 500 index up 31 points this afternoon. The NASDAQ up 132 points, about three quarters of 1%. The bounce back may be muted because of one notable tech stock. The key story here is tech is rebounding, but not aggressively rebounding. And a lot of the problem is in semiconductors,

where Micron, which trades on the NASDAQ, is down 17 percent because of the guidance. And that's sort of weighing on the ability of tech to make a comeback. CNBC's Bob Pisani. Investors liked that the Fed cut interest rates yesterday by a quarter percentage point, but they didn't like that the Fed signaled fewer rate cuts may be coming next year. The Fed cut rates. So why are mortgage rates going higher today, back above 7%? Because the Fed doesn't directly have anything to do with home loan rates. Instead, those follow the yield on the 10-year Treasury, which was popping higher. More existing homes were sold in November than forecast, and a quarter of all those home sales last month were all cash. Cash is still king at 25 percent of

sales. The median price in November, $406,000, up 4.7 percent year over year, and 18 percent of sales went above list price. And I do want to note that mortgage rates shot up yesterday after the Fed announcement, up 21 basis points to well over 7%. CNBC's Diana Olick. It's crunch time for the airlines as the Christmas and New Year's holiday period is on. Here's the CEO of Delta. We're looking over the Christmas break from the Friday before Christmas to the Monday after New Year's, serving approximately 10 million people and doing it in great style and with great experience.

Delta Airlines CEO Ed Bastian on CNBC. CNBC teamed up with Athletic Director Yu to put out its inaugural list of 75 most valuable college sports programs. At the top, Ohio State, valued at $1.3 billion, followed by the University of Texas, Texas A&M, Michigan, and Alabama. And Wall Street may be eyeing a fresh trade next year. Private equity already has stakes in NFL teams, and they're eyeing college sports. This hasn't happened yet, but I think it will by the end of next year. I don't think they'll own majority stakes. I think what they'll do is they'll create a sort of a special purpose vehicle.

They'll put the revenue-generating assets in in there like television, merchandising, licensing, retail, and they'll own a minority stake of that. Private schools may be the first to do this. You've got issues with the public schools. They're land grant schools. They have restrictions from the states. So there's some things to be worked out for sure. Yeah.

One thing that seems certain is the profit motive has come. Absolutely. And it's come hard. Big time. Big time for sure. CNBC sports reporter Mike Ozanian with CNBC's David Faber. Jessica Ettinger, CNBC. Jim Kramer is the benefit you get that you can't get anywhere else. He has a unique ability to know the market, explain it to people. It's a great value. Get invested. Join the club today. Go to cnbc.com slash join Jim.