CNBC Business News Update - Market Midday: Stocks Lower, President Trump Calls For Fed Governor Cook To Resign, Target Sales Miss Estimates 8/20/25

Episode Date: August 20, 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 Eddinger, CNBC. We've got Wall Street in the red this afternoon. The Dow is down 59 points. It's being led lower now by shares of Amazon, which are falling 2%. The S&P 500 index is down 38 points. That's more than a half percent. The NASDAQ now down 246 points off its earlier lows. That's a little more than 1%. Companies whose shares have hit fresh all-time highs today include AutoZone, T.J. Max and Marshall's parent, T.J.X. Companies, Quest Diagnostics and Allstate. President Trump is calling for Fed Governor Lisa Cook to resign. She's being accused of occupancy mortgage fraud. The president's been railing on the Fed to cut interest rates. If she leaves, he will be able to appoint her replacement. You know, the Fed has written all about the economic harm of mortgage fraud, in particular occupancy fraud. And here she is allegedly committing mortgage fraud. So I think it's a big issue. I don't think it's going away.

I think she will have to resign or I think she will be fired. That's Federal Housing Finance Agency Director Bill Pulte on CNBC. We alleged that she took out a loan using a Fannie Mae in Freddie Mac form, stating that she had her primary residence in Michigan. She went purchased an Atlanta condo. To make it worse, she then went on to eventually list the apartment and probably is renting it out. Sounds like the claim or the allegation is that she claimed. named primary residents on two different places at the same time? That's correct.

You cannot do that in America. CNBC, Sarah Eisen there with Director Pulte. Target shares were struggling after sales fell again in the last quarter. Its CEO is stepping aside, and longtime Target insider Michael Fidelke will take the job to try to turn things around. Here's SW Retail Advisor Stacey Whitlets on CNBC. The bottom line is Target is losing share in more than half of their categories. The stores are a mess. They're in disarray, inventory shortages, labor shortages.

Meantime, T.J. Max and Marshall's parent T.J.X. Companies out with good quarterly results. It's raising its full year outlook as it captures bargain hunting customers. Lowe's shares were higher on better than expected quarterly results after Home Depot disappointed with its numbers that were out yesterday. McDonald's combo meals will get cheaper, according to the Wall Street Journal. Some of these Big Mac combo meals had reached 18 bucks in some areas of the country. They are going to be cutting the cost of their combo meals. They finally were able to convince franchisees to go along with this new pricing model. The journal's reporting is that meanwhile, you got things like Chili's comping well into double digits

so that you can see where McDonald's would feel some pressure there. Yeah, Chili's comping that way. And then if you see the value that's advertised for the sit-down casual restaurants like Chili's and Applebee's. I mean, they've converged in price point to a large degree. CNBC's Mike Santoli and Carl Keentania. Mickey Deez is also signed K-pop group, BTS, for another happy meal collaboration. The meals will come with tiny tan toys inspired by each of the South Korean boy band's seven members. Hertz shares popped.

On word, the rental car chain will sell its used vehicles on Amazon starting this week in four cities expanding to more down the road. Cruise lines changing summer sailings out of East Coast ports to minimize the rough trip near high waves churned by Hurricane Aaron. Bermuda ports of call have been canceled or switched to Western Caribbean stops or Canadian ports. Jessica Eddinger, CNBC. Breaking earnings news this week on CNBC and streaming on CNBC Plus.