CNBC Business News Update - Market Midday: Stocks Mixed, Former Fed Chairs Push Back On DOJ Probe Of Powell, Retail Sales Fell Last Year 1/12/26

Episode Date: January 12, 2026

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. Hosted by Simplecast, an AdsWizz company. See https://pcm.adswizz.com for information about our collection and use of personal data for advertising.

I'm Jessica Eddinger, CNBC. Stocks mixed. Markets barely reacting now to the Justice Department opening an investigation of Federal Reserve Chair Jerome Powell. The Dow down 79 points. It had been down 400. American Express shares are leading the Dow lower this afternoon. They're down 4%. The S&P 500 Index is up for the NASDAQ up 74 points.

Shares of Nvidia are up a half percent. Fed Chair, J. Powell with an unprecedented video response to the announcement of the investigation and major pushback from former Fed chairs siding with Powell. The powerful group of former Federal Reserve chairs and Treasury secretaries, including Alan Greenspan, Ben Bernanke, Janet Yellen, and Robert Rubin, they all released a striking joint statement in defense of Federal Reserve independence and in opposition to the Department of Justice's criminal investigation of current share Jay Powell. In it, they write, This is how monetary policy is made in emerging markets with weak institutions, with highly

negative consequences for inflation and the functioning of their economies more broadly. It has no place in the United States whose greatest strength is the rule of law, which is at the foundation of our economic success. CNBC's Eamon Javers at the White House. Investors aren't as worried after a plunge this morning. Stocks have stabilized. And here's a take from Skybridge capitals, Anthony Scaramucci on CNBC. His messaging is very clear, I'm going to be the next Fed chair.

He sent out a tweet earlier about him being the president of Venezuela. We are listening to Punditri say that the markets want Fed independence, but the market's not telling you that. If you believe Donald Trump, and I do, and I take him at his word, that he wants the next Fed chair to be coincident with his decision-making on interest rates. This is more messaging from the president, and I think he's won the message. whether people like to hear that or not. Companies whose shares have hit fresh all-time highs today include Walmart, Micron,

applied materials, and Google Parent Alphabet. Gold with a fresh all-time intraday high today, $4,621 an ounce, crossing $4,600 for the very first time. Silver with a fresh all-time intraday high, $85.55 an ounce. Bank executives not happy today in a weekend social media post-president. and Trump resurrected a campaign promise and called on credit card companies to implement a 10% cap on credit card interest for one year. The average rate on a credit card is about 20% according to bank rate. Many store cards charge interest up to 35%.

Consumers did not stop spending last year, but they slowed down. Total retail sales dropped in 25 from 2024. The CNBC NRF Retail Monitor powered by actual credit credit. hard spending data from affinity solutions shows retail sales year-over-year for less than the year prior. Despite sentiment and softer survey type measurements, consumers feel negative. But NRF chief economist Mark Matthews says consumers gripe but swipe. CNBC's Courtney Reagan. Walmart shares were higher on word it's being added to the NASDAQ 100 index later this month. It'll then go into the popular QQQQ exchange traded fund. The PGA tour begins its season today.

in Hawaii. I'm Jessica Eddinger, CNBC. Breaking earnings news. Market Reaction, this week on CNBC and streaming on CNBC Plus.