CNBC Business News Update - Market Midday: Stocks Higher, Supreme Court Rejects Purdue Pharma Opioid Settlement, Amazon To Launch Discount Store 6/27/24

Episode Date: June 27, 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. We've got the markets in the green this afternoon, although chipmaker stocks have been pulling back. NVIDIA shares down a little less than 2% now. The Dow is up 86 points. The S&P 500 index up a point. And the NASDAQ is up 31 points. Companies whose shares have hit fresh all-time highs today

include Booking Holdings, Royal Caribbean Cruises, Google Parent Alphabet, Amazon, and Microsoft. The Purdue Pharma opioid settlement that would have shielded the controlling Sackler family from opioid lawsuits has been rejected by the Supreme Court. A sweeping defeat here for Purdue Pharma and the Sackler family, the billionaire heirs of the Purdue Pharma fortune. The Supreme Court now has rejected that nationwide bankruptcy settlement with the OxyContin maker, Purdue Pharma, saying that it was not fair to a subset of the victims who did not agree with the settlement. This settlement exempted the Sackler family personal billions. What this family wanted here was a judicial order releasing the family from all opioid-related claims and enjoining victims from bringing such claims against them in the future.

The Supreme Court is now rejecting that deal. CNBC's Eamon Javers. Boeing sanctioned by the National Transportation Safety Board over the release of the non-public details of an ongoing investigation into a 737 MAX mid-air emergency. And the NTSB is referring the conduct to the Justice Department. Walgreens shares plunging after the drugstore chain slashed its profit outlook and starts closing more underperforming stores. Walgreens does post a quarterly miss, cuts the guide, announces more store closures. They say 75% of stores account for 100% of profitability. There is room to cut.

They had to close 2,000 stores. But I tell you, I was disappointed here. Why? Because I think Tim Wentworth, he's a fantastic manager. And he couldn't get his arms around this. The Tim Wentworth that I know is someone who's more aggressive. So this problem's got to be even bigger than he thought. CNBC Mad Money host Jim Cramer with CNBC's Carl Quintanilla

referencing Walgreens CEO Tim Wentworth. Levi Strauss sales disappointed in the last quarter, even though denim is back. Second quarter sales at the Jeansmaker falling just short of analyst estimates, and that's despite a surge in denim popularity. The company says consumers have been, quote, generally cautious and are not spending a lot on discretionary items. Along with raising its dividend for the first time in six quarters, Levi's is also working on its direct-to-consumer website while reducing reliance on department stores. Our DTC business is just on fire. I mean, we delivered another double digit quarter. We were up 11%.

CEO Michelle Gass on that money last night. CNBC's Frank Holland. Amazon, not known for low prices. So it's planning to launch a discount store to try to fight rivals from Asia like Timu and Sheehan. Amazon hosted a closed door event for sellers in China and will likely start accepting products this fall for this new secret discount store. 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.