CNBC Business News Update - Market Midday: Stocks Lower, High Wholesale Inflation Dashes Investor Hopes Of A Big Interest Rate Cut, GM Unveils "Elevated Velocity" Concept EV 8/14/25

Episode Date: August 14, 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 Ettinger, CNBC Wall Street falling from record highs on higher than anticipated inflation at the wholesale level for last month, surprising many investors, and thwarting the idea that a big interest rate cut may be coming in September by the Fed, the Dow. This afternoon, down 195 points, 4 tenths of a percent. Cisco shares now leading the Dow lower. They're down 1.7 percent. The S&P 500 index is down 14 points. The NASDAQ down 41 points. And video shares have turned lower. They're down 1 tenth of 1%. Companies who shares have hit fresh all-time highs today include electronic arts as Madden 26. The football video game is out today. And ticket master parent live nation after Taylor Swift announced a new album coming October 3rd. Inflation went up more than forecast in July in the PPI, the producer price index. From our July release of the producer price index, headline number is whoppingly big. Oh, my goodness, up nine-tenths of a percent. And if you strip out food and energy, guess what? It's still up nine-tenths.

Boy, that equals June of 22. The COVID-distorted numbers. Let's go year over year. These are warm, too. That's just food and energy. that number coming in at 3.7? That really is a very, very large number. So we see every single metric is warmer than expected. Every single metric is significantly higher sequentially. CNBC's Rick Santelli, investors worry because producer prices can be passed down to consumers down the road

so it could push consumer inflation even higher. And investors are also worried because every time inflation-related numbers rise, which has been happening for several months, it means the Fed will not come. cut interest rates. The Treasury Secretary, though, has been suggesting the Fed will cut interest rates, not by a quarter percent in September, but by twice that, a half percent. You know, when I say stuff. You mean the Treasury Secretary? It's okay. And I look at what's going on, and I say a double is just some sort of bizarre gambit as if that's going to somehow put a pressure on Powell, who, by the way, does not care about any of this stuff. He's focused on doing a good job. And I think he's under tremendous pressure to do even a cut. So suddenly they play

the 50 basis points. It makes no sense. I mean, not with these numbers. Right. CNBC MedMoney host Jim Kramer with Carl Kintanilla. Tractor maker Deer and company says its profit dropped in the last quarter blaming tariffs weak crop prices and a shift toward farmers renting their equipment instead of buying it. The farm equipment company saw its net income Fall 26% year-over-year tariffs. They wait on its construction and forestry business. Deer also lowered the high end of its net income guidance. CNBC's Frank Holland Deer shares were on pace for their worst day in more than three years.

Cadillac has unveiled the elevated velocity electric crossover concept car, gullwing doors, a red interior, fragrance, unique lighting. The exterior color is inspired by glacier ice. GM's Cadillac is aiming for the cool and wealthy EV buyer. This is just a concept car and won't be on the market, but variations might be. Cadillac was the best-selling luxury EV brand in the second quarter of this year in the U.S. Jessica Eddinger, CNBC. September 16th, CNBC teams up with two-time NBA champion Kevin Durant and Boardroom for Game Plan.

Exploring the business of sports, music, and entertainment. Register now at CnBCEvents.com slash game plan.