CNBC Business News Update - Market Midday: Stocks Lower, Palantir Down 4%, President Trump Now Says Government Will Not Pay SNAP Benefits 11-4-25

Episode Date: November 4, 2025

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I'm Jessica Eddinger, CNBC. The major averages all in the red this afternoon. The down, now down 150 points. The S&P 500 indexed down 53 points. The NASDAQ now falling 326 points. That's 1.3% this afternoon. There are fears about high AI stock valuations. Palantir shares are leading the decline. They're down more than 4% this afternoon. President Trump suggesting the U.S. will not pay any SNAP benefits during the shutdown, contradicting a court filing and also contradicting a court ruling. Big banks are warning of a looming correction for the markets. It's very common, first of all, to see drawdowns of 10% or more. In fact, 10% is something we see in about half the years in the history of the stock market. So we should expect that. You know, I don't think that that suggests that we're in a bubble.

In fact, when you look at the companies most folks are concerned about, you know, they're the ones that are leading growth in earnings. They have the free cash flow. In fact, if there's a risk out there, it's not so much to valuations of those companies. It's potentially to the earnings growth outlooks. Right now there's an awful lot built in. We think a lot of it is justified. But that's where I would look for the risks. That's Advisor Capital Management's Joanne Feeney on CNBC. Palantir shares lower today. It reported strong quarterly results after the closing bell last. night it makes software and has a lot of government contracts. Some investors are worried that AI-related stock prices might be getting too high. There are two subtle issues in AI. What is the addressable market and what is the addressable market for things that work? Palantir, we're in the business of a part of the addressable market where it works and it can be quantifiable, either commercially

or on the battlefields. Every part of the stack is going to have to create more value than they charge. That's just obvious. And if that doesn't happen, it will be a bubble. That's Palantir CEO, on CNBC. The whole interview is at CNBC.com. Treasury Secretary Scott Bessent told CNBC today that the White House has a backup plan if the Supreme Court finds that President Trump does not have the power to impose tariffs without congressional approval, which is what's happened. The White House declared emergencies and then declared tariffs under the International Emergency Economic Powers Act. There are lots of other authorities that can be used. but IEPA is by far the cleanest, and it gives the U.S. and the president the most negotiating

authority. The others are more cumbersome, but they can be effective, less. It hinders the president's negotiating ability to be able to protect the American people and the American economy. Pizza Hut could be for sale. company is Yum brands. It's looking at options. Yum also owns KFC and Taco Bell. Starbucks teaming up with Boyu Capital to run the coffee chain's China business. Starbucks has struggled in China against new competition from the Luckin coffee chain and others.

Luckin already has stores in the U.S. YouTube TV customers could not watch the Cardinals beat the Cowboys last night and Monday night football. The Disney ESPN channels are still off in a. carriage dispute, Jessica Eddinger, CNBC. We're celebrating our 30th anniversary. I think the investing market is all tailwind, except it can't possibly be. Celebrating 30 years of Squackbox and streaming on CNBC Plus.