CNBC Business News Update - Market Midday: Stocks Lower, Worries Forming Over Cracks In Bank Lending, Nestle To Cut 16k Jobs 10/16/25

Episode Date: October 16, 2025

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I'm Jessica Eddinger, CNBC. The markets are all in the red this afternoon. Investors worried about the China trade war as well as possible cracks in bank lending among regional banks. The Dow down 172 points led lower by shares of travelers, the insurance company, the S&P 500 index, in the red by 26 points. The NASDAQ now down 58 points. Shears of Nvidia still in the green, up three quarters of one. percent this afternoon. Are there cracks forming in the private credit market or with regional bank lending? Here's CNBC's Leslie Picker. M&T showed higher net charge-offs, both compared with last

quarter and a year ago, and that metric, which indicates the amount of debt lenders believe won't be repaid, is in focus amid broader concerns about potential credit cracks. Last night, Zion's Bank Corporation put out an 8 case saying it would take a $60 million provision and a $50 million charge off related to two loans. Tomorrow we'll hear from Truist and Regions Fifth Third and Comerica, which are of course merging, Ally Financial and Huntington. So we'll hopefully get a few more pieces of that credit quality puzzle to put together. But you can see investors are just very concerned about this onslaught of headlines right now. United Airlines released quarterly results after the closing bell last night. Earnings better than expected, but the airline, in terms of revenue,

its third straight miss for what Wall Street was looking for. Almost every international region saw a decline in passenger revenue per seat mile as many international travelers have been avoiding the U.S. Meantime, the government shutdown is not yet impacting air travel. I've actually been pretty impressed by the resilience of the system thus far, and we've seen a little bit of elevation and delays, but no spiking cancellations. And I would say the data looks more like a stretch of bad weather, hit the system. You know, they've gotten a little bit more used to dealing with these type of shutdowns

over the last dozen or so years. So the industry's built up some muscle memory. That's T.D. Cowens, Tom Fitzgerald, on CNBC. Earlier today, Denver was dealing with weather delays at Denver International. That's a major U.S. hub. Nestle shares have been jumping. The Switzerland-based consumer goods. giant makes foods like Gerber baby food, de Jorno pizza, and Kit Kat candy bars, and a brand new

CEO at Nestle has been slicing jobs. This is a much-needed boost for Nestle, which has been underperforming for many, many quarters now, the workforce cutting, 16,000 or 6% of the workforce. This is the first important mark by new CEO, Philip Navratu. He's only been on the job of five or six weeks. CNBC's Carolyn Roth. Gold with yet another intraday all. time high today. $4,266 announced it's on pace for its 48th record close of the year amid uncertainty. Jessica Eddinger, CNBC. Breaking earnings news this week on CNBC and streaming on CNBC Plus.