CNBC Business News Update - Market Midday: Stocks Lower, Bond Yields Higher, Mortgage Rates At Their Highest Since last Summer 1/8/25

Episode Date: January 8, 2025

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. In the red this afternoon, the Dow down 120 points. It's been volatile today, being led lower by shares of Johnson & Johnson, down 2.5%. The S&P 500 index down 20 points now. The Nasdaq back in the red this afternoon, down 115 points. Shares of Nvidia have turned lower this afternoon, down three-quarters of one percent. It's all about bond yields, which are higher. It's a problem because what has happened now is the equity to bond correlation has turned negative. You're being held hostage

by what happens with treasury yields itself. Fertus Investments, Joe Terranova on CNBC. While the full year 2024 was strong for the S&P 500 index, December wasn't so great. Here's one outlook. The old admonition, as goes January, so goes the rest of the year, hasn't necessarily held every year when you actually dig into the numbers. But it's very normal, even in uptrending markets, to have a 5 or 10 percent pullback. We had that little scare back in August where we pulled back. But we've had a lot of very low volatility days in the last year or so. So that wouldn't be unexpected at all. BMO's Carol Schleif on CNBC. A slower pace of hiring in December. Payroll firm ADP says 122,000 new private sector jobs were created.

This December report definitely represents a downshift, but it's still a solid number. Pockets of weakness are something to watch. Manufacturing shed jobs for three consecutive months. That's concerning. What's doing the heavy lifting in services is no longer leisure and hospitality. We think that game is over. It's really health heavy lifting in services is no longer leisure and hospitality. We think that game is over. It's really health care. ADP economist Neela Richardson on CNBC. Meantime, fewer people than expected applied for unemployment benefits last week at 201,000, and that's well below the pre-pandemic weekly average of about 225,000. The job market remains resilient. The insurance industry is watching as tens of thousands of people have evacuated their homes and businesses in Los

Angeles because of rapidly growing wildfires sweeping across an affluent section of the city. California Governor Gavin Newsom declaring a state of emergency as powerful winds in the Los Angeles area whip up wildfires. At least 30,000 residents have been forced to evacuate as the Palisades fire continues to grow. CNBC's Silvana Hanau, there are three fires, the Palisades, Altadena, and the Eaton fire. Mortgage rates are at their highest since last summer at 7.1% today. According to Mortgage News Daily, that's on average for a 30-year fixed loan. Mortgage demand fell off a cliff last week. Netflix says its Squid Game season two racked up views at the fastest pace of any of its shows in history.

More than 126 million views in 11 days. Girl Scout cookie season is here. This will be the final year for s'mores and toastier flavors. Girl Scouts selling the cookies can earn badges for business and financial literacy. Jessica Ettinger, CNBC. Essential investing tools for wealth management. Plus, CNBC global market news and analysis tailored to your holdings. Become a smarter investor with the power of CNBC Pro.

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