CNBC Business News Update - Market Midday: Stocks Mixed, Trump Media Gets Into Banking, Coffee Futures Hit Record High 1/29/25

Episode Date: January 29, 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 and reported by CNBC's Jessica Ettinger.

I'm Jessica Ettinger, CNBC. Wall Street is mixed this afternoon ahead of a Fed decision on interest rates. And then after the closing bell, we get earnings from three big names in the Magnificent Seven, Microsoft, Facebook parent Meta, and Tesla. The Dow is in the green now, up 25 points, being led higher by shares of Nike, which are up a little more than 2%. The S&P 500 index down 14, the NASDAQ down 106, that's a half percent. NVIDIA shares are down almost 5% this afternoon. We have a lot of companies, though, whose shares have hit fresh all-time highs today, including Walmart, Goldman Sachs, and JPMorgan Chase, Live Nation, Hoka, Sneaker Maker, Deck's Outdoor, Royal Caribbean Cruise Line, Ralph Lauren, Morgan Stanley, and Boston Scientific.

Trump media shares are surging as it gets into banking with the new FinTech Financial Technology Division. Trump media owns Truth Social, and the banking division will be called TruthFi. TruthFi, the company planning to invest up to $250 million through Charles Schwab and be allocated to customize separate managed accounts, ETFs, crypto assets and more. Charles Schwab will also broadly advise on TruthFi's investments and strategies. CNBC's Andrew Ross Sorkin, the president, owns 57 percent of Trump media, according to the Associated Press. Starbucks reported better than expected quarterly results after the closing bell last night. Shares were higher. Same store sales, though, dropped for the fourth quarter in a row. It is a slow turnaround. Bring back the idea of a coffee

house vibe. Hopefully you saw that with the condiment bar coming back. You know, when you stay in our stores now, you're getting a ceramic mug, some free refills. We've got to win the morning and you're starting to see us do that. We're starting to see progress as it relates to our partners being in position, being supported correctly. Small steps forward, but I love the fact that we're going forward. That's Starbucks CEO Brian Nickell on CNBC. And those free refills may be worth even more. Coffee futures have hit another record high today as the world's seventh biggest coffee grower, which is India, is forecast to have lower production this year. Google reclassified the United States as a sensitive country, just like China or Russia,

a designation it reserves for states with strict governments and border disputes. Frontier Airlines wants to try again to merge with Spirit Airlines, but Spirit has already said no. Last year was strong for auto sales, and dealers say incentives are going to help sell more cars this year, as consumers have been hit hard by inflation. Group One owns dealerships nationwide with a lot of major brands. Customers are paying slightly less right now for new cars if they're taking advantage of incentives. There are some incentives out there, more than we've seen in the last, certainly in the last two years. Group One automotive CEO Daryl Kenningham on CNBC.

Here's what's selling right now. Customers are still showing a preference for large trucks and SUVs. Hybrid is still very strong and growing. EV is declining a bit. The good thing is the EV inventories are now in line with what seemingly demand is, but it's in the low single digits generally in most of the country. Fox sold Super Bowl ads for as much as a record $8 million for a 30-second commercial this year. The game on February 9th is sold out in terms of commercial time.

AI and pharmaceutical companies took a bigger share of commercials this year. Jessica Ettinger, CNBC. Earnings season, the quarterly numbers as they break. The scorecard for the American economy. Earnings season on CNBC.