CNBC Business News Update - Market Midday: Stocks Mixed, DOJ Sues Live Nation, Nvidia Shares Top 1k, Above Normal Hurricane Season Forecast 5/23/24

Episode Date: May 23, 2024

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 Jessica Ettinger.

I'm Jessica Ettinger. CNBC, Wall Street mixed this afternoon. The Dow being dragged down lower by shares of Boeing, which are falling 5%, but the Nasdaq eyeing 17,000. On strong quarterly results from AI Bellwether NVIDIA, the S&P 500 index hit a fresh intraday record high today. Let's get the numbers.

The Dow now down 250 points. The S&P up 13 points. The Nasdaq is up 140 points this afternoon. All three major averages on pace for their best month since last year. Live Nation shares are under pressure. The Department of Justice and a group of states filed an antitrust lawsuit against it for illegally controlling the live event and concert business. A statement from the Attorney General Merrick Garland who says it's time to break up Live Nation and Ticketmasters. These are the elements that the Department of Justice says are anti-competitive in Live Nation's behavior. They're citing a relationship here with an entity called Oak View Group, which is a potential competitor turned partner, the Department of Justice says,

that has described itself as a hammer and a protector for Live Nation. Also citing the fact that the company allegedly retaliates against potential entrants into the market, threatening and retaliating against venues that work with rival companies. They're saying that they lock concert venues into long-term exclusive contracts so that venues can't consider or choose rival ticketers, restricting artists' access to venues, and finally acquiring competitors and competitive threats. CNBC's Eamon Javers hears what Columbia Law professor Tim Wu told CNBC. This is sort of the textbook definition of a rapacious monopoly. And the United States government allowed them to merge in 2012 or so. Live Nation and Ticketmaster, and that ended up being a big mistake.

AI chipmaker NVIDIA showing no signs of a slowdown for the technology, with sales up more than 260% in the last quarter. Company revenue more than tripled in Q1, and its data center business grew by more than 400% over a year earlier, sending shares above $1,000 for the first time. The demand for GPUs in all the data centers is incredible. We're racing every single day. Jensen Wong on the call last night.

NVIDIA's CEO and CNBC's Carl Quintanilla there, the NVIDIA stock split that it announced is coming next month. Shares are above $1,000 apiece. This will make them more affordable. It'll happen after the close on June 7th. New home sales came in way below expectations in April. It's all about prices and mortgage rates and affordability, not brain surgery here. Prices up 4% year over year in April to $433,500 for a new home. And take a look at where mortgage rates went in April because these are signed contracts. That's what the numbers are based on. So people out shopping in April, when mortgage

rates started in the right around 7%, shot up to 7.5%. We've asked when builders will start to lower prices. Some have a little bit, but really they say they can't because of high costs of land, labor, materials. CNBC's Diana Olick. NOAA, out with its 2024 Atlantic hurricane season forecast, it will be above normal for storms with La Nina and warmer than average ocean temperatures. 17 to 25 total named storms, eight of those hurricanes, four to seven majors of a cat, three or worse. The forecast does not include whether a storm ever makes U.S. landfall. Jessica Ettinger, CNBC.