CNBC Business News Update - Market Midday: Stocks Lower, Inflation Worries, Pershing Square's Ackman Amasses Big Stake In Uber 2/7/25

Episode Date: February 7, 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 and reported by CNBC's Jill Schneider.

I'm Jill Schneider, CNBC. Stocks are taking a hit on Wall Street as a mix of headlines related to tariffs and inflation worried traders as the week comes to a close. The Dow is down 265 points, the S&P is lower by 43, and the Nasdaq is down 232. Consumers grew dramatically more worried about near-term inflation as President Trump pushed aggressive tariffs against major U.S. trading partners. The closely watched University of Michigan Consumer Survey for February showed respondents expect the inflation rate a year from now to be 4.3 percent, up 1 percent from January and the highest since November 2023. Wall Street is also digesting a weaker-than-expected jobs report.

The Labor Department says only 143,000 jobs were added to the economy in January, down from 307,000 in December and below estimates of 169,000. But the unemployment rate edged lower to 4 percent. Minnesota Federal Reserve President Neil Kashkari spoke with CNBC after the jobs report was released. This is still a good labor market. It's not as hot as it was a year or two ago. And I validate this data by talking to businesses all around the region and around the country. And overall, the feedback that I'm getting is the economy is strong. Businesses are optimistic. It's a cooler labor market than a year ago, but they're still having to work to find the workers

that they need. And so I think the economy's in a good place. We want to keep it there while getting inflation all the way back down to our target. Kashkari says he expects to see interest rates lower this year if the economic data continue to move in the same direction. Amazon is the biggest drag on the Dow today. Shares slid more than 4 percent after guidance from the e-commerce giant disappointed investors. One stock in the green is Expedia. The online travel company is the biggest gainer in the S&P 500, up 18%.

Expedia's fourth quarter results outpaced Wall Street's expectations. Pershing Square's Bill Ackman revealed today he has built a significant stake in Uber, saying the stock is still trading at what he calls a massive discount. In a post on X, the hedge fund manager said he began buying Uber shares in early January and has amassed 30.3 million shares. That's worth about $2.3 billion, based on the stock's current price of about $75 a share. Shares of Uber are up more than 8 percent. Super Bowl 59 kicks off this Sunday between the reigning champs Kansas City Chiefs and the Philadelphia Eagles. Host City New Orleans is

preparing for an estimated 125,000 visitors. Are you betting on the big game? If so, you're not alone. Americans will wager an estimated $1.4 billion on the Super Bowl. FanDuel CEO Amy Howe spoke with CNBC about the explosive growth of online gambling and about a bipartisan letter sent to the Department of Justice asking officials to look at whether FanDuel and rival DraftKings are taking part in anti-competitive practices. We feel very confident in how we're complying with antitrust laws. I think the important thing you have to remember in our sector is we have to coordinate with the top competitors in order to safely open up the market. But we also choose to with things like Responsible Online Gaming Association. As for the Super Bowl ads,

all the spots sold out back in the fall. A record 10 commercials went for $8 million apiece. Jill Schneider, CNBC. CNBC has the most affluent audience in television, but money itself doesn't have any meaning. It's how you make it and what you do with it that gives it purpose.