CNBC Business News Update - Market Midday: Stocks Mixed, Microsoft Announces AI Partnerships, Lowe's and Macy's Results Out 5/21/24

Episode Date: May 21, 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 Edinger, CNBC. Mixed markets on Wall Street this afternoon. The Dow's in the green, up 14 points. The S&P 500 index is up a point. The Nasdaq in the red. It's only down a point. It opened at a record high this morning. Companies whose shares have hit fresh record highs today include Boston Scientific, Eli Lilly, Walmart, and Microsoft. Microsoft's Build Conference is on in Seattle. It's all about AI. This is a flood of AI announcements coming out of Microsoft's Build Developer Conference here in Seattle. As for OpenAI, Microsoft is going to start offering access to GPT-4.0.

That's, of course, the latest version OpenAI showed off last week. And a new partnership with Cognition. That's a buzzy AI startup backed by Peter Thiel. It's only a few months old, and it already has a $2 billion private valuation. It makes an assistant called Devin that does all of the coding for you, not just a helper. Someone like you or me can just tell it what you want to make in natural language language and the rest is coded automatically. CNBC's Steve Kovach. Meantime, Microsoft launching a new AI assistant for all teachers in the United States. It's a deal with the Khan Academy.

Nestle launching a frozen food brand called Vital Pursuit. Targeting consumers taking GLP-1 weight loss drugs like Wegovia and Ozempic. Nestle's U.S. president tells CNBC the frozen bowls, sandwich melts, and pizzas will deliver certain nutrients to help the customer stay healthy for under $5 a meal. Lowe's reported solid quarterly results today, beating Wall Street estimates for earnings and revenue, even as consumers spent less on DIY projects. They're definitely better. I mean, let's just say modestly better than expected, but still weak. You know, I think just like we were talking about Home Depot a week ago, you know, this shows this ongoing struggle in the home improvement sector.

Oppenheimer's Brian Nagel on CNBC. Macy's turnaround plan showing some early progress. The retailer beat earnings estimates for the last quarter. Macy's, the namesake, is actually the weakest of the three brands. We're continuing to see Bloomingdale's and Blue Mercury do better. And that's why Macy's recently announced it's going to be closing about 150 stores. What Macy's is trying to point to is signs of momentum with stores it's investing in. So it's keeping 350 of its namesake stores open, and it says the first 50 stores it's invested in are doing better. CNBC's Melissa Repko. Broadcom's CEO Hock Tan, the highest paid CEO last year with a pay package of

$162 million. The Wall Street Journal analysis found that the median CEO pay was $15.7 million, a record. Jessica Ettinger, CNBC. Wednesday, May 22nd. Join CNBC's Financial Advisor Summit. Economic experts focusing on market growth and risk. Register now at cnbcevents.com slash FA.