CNBC Business News Update - Market Midday: Stocks Mixed, Treasury Secretary Nominee Testifies, Biden Oligarchy Warning 1/16/25

Episode Date: January 16, 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 Edinger, CNBC. Wall Street is mixed this afternoon. The Dow in the green up 24 points, being led higher by shares of Boeing, which are now up more than 2%. The S&P 500 index up 7 points this afternoon. The Nasdaq in the red down 43 points. Companies whose shares hit fresh all-time highs today include JPMorgan Chase, Goldman Sachs, and American Express. Treasury Secretary nominee hedge fund manager Scott Besant testifying today to the Senate Banking Committee. He said that government spending is out of control, but

under the Trump administration, Social Security payouts will not be touched and that heavier sanctions are on the way for Russia. Retail sales for December, the holiday month, rose. They missed estimates. Online sales continue to be strong. Electronics were a little muted. The numbers look good, though, when you take out vehicle sales. Ex-autos, it remains up four-tenths. Very solid reading. If we go X autos and gas, up three tenths. Another solid reading. And the core, the control number, up seven tenths. That's a very good reading. CNBC's Rick Santelli.

Slightly more people than expected applied for unemployment benefits last week, but still below the pre-pandemic weekly average. Earnings season rolls on. Morgan Stanley and Bank of America each out with strong quarterly results. Microsoft's CEO, the latest to get some face time with incoming President Donald Trump. According to reports, Satya Nadella dined with the president and vice president-elect along with Elon Musk at Mar-a-Lago yesterday. The reports say Trump and Adela discussed AI and cybersecurity, including Microsoft's pledge to invest $80 billion on AI data centers worldwide.

CNBC's Silvana Hanau and that Trump-Musk-Microsoft dinner came as outgoing President Joe Biden issued a warning about an oligarchy forming. The president looking to frame his presidency and his 50-year career in politics, commenting on the peaceful transition of power, climate change, and that Middle East peace deal. The president also warning of what he describes as, quote, a dangerous concentration of power in the hands of very few ultra-wealthy people. Today, an oligarchy is taking shape in America of extreme wealth, power and influence that literally threatens our entire democracy, our basic rights and freedoms and a fair shot for everyone to get ahead. Biden added it sets a dangerous stage if the abuse of power is left unchecked.

CNBC's Frank Holland. State Farm insures more homes in Los Angeles than any other company, and it made a curious announcement while the fires still burn. It told me it has paused the notification process on homeowner non-renewals in the area affected by the fires. The homeowner policies affected by the fires that were on the books on January 7 will have an option to renew with State Farm for another policy term. It's unclear to me how monumental that decision is because the State Insurance Commissioner last week had ordered a moratorium on non-renewals, telling insurance companies they weren't permitted to tell these affected properties that they would no longer have insurance. So it may just be this is State Farm

announcing that it's following the instructions from the Insurance Commissioner. CNBC's Contessa that they would no longer have insurance. So it may just be this is State Farm announcing that it's following the instructions from the insurance commissioner. CNBC's Contessa Brewer. Jessica Ettinger, CNBC. The second inauguration of President Donald Trump and the impact on American business. Becky Quick, live in Washington, with influential investors including Stanley Druckenmiller

and Elon Musk biographer Walter Isaacson. Monday starts 9 a.m. Eastern, CNBC.