CNBC Business News Update - Market Midday: Stocks Modestly Higher, Correction Warning, Tesla Shares Dive 5% 1/2/25

Episode Date: January 2, 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. It's the first trading day of this new year in Wall Street's already rocky. The Dow gave up a 360 point morning gain. It slid into the red and this afternoon it's back in the green. The major averages are all higher but modestly now. The Dow up 68 points. It's being led higher by shares of Nvidia which are up more than 3 percent. The S&P 500 index up 68 points. It's being led higher by shares of NVIDIA, which are up more than 3%. The S&P 500 index up 20 points. The NASDAQ is up 88 points this afternoon. A strong 2024 is in the books. And the S&P 500 index returned more than 23% for the second year in a row. It's a very rare occurrence. This year, though, stocks could pull back. I think this is a year for a row. It's a very rare occurrence. This year, though, stocks could pull back. I think this is a year for a correction. I think the end of the year, I'm not saying we'll be in a correction by the end of the year, but, you know, it's been a long time since I've called something like that.

Wharton professor Jeremy Siegel on CNBC. Tesla shares are sliding this afternoon down 5%. It reported its first ever drop in annual deliveries. Tesla used to have the EV market to itself, but drivers are now choosing brands from Ford to Hyundai and more. Oil popping to its highest since mid-October, topping $73 a barrel. Drivers could see a tick higher in prices at the pump. AAA says the national average for a gallon of regular today is $3.06. 25 U.S. states average gas at $2.99 or less. The fewest number of people since last April applied for unemployment benefits last week as the job market remains strong. Initial jobless claims comes in 10,000 light to expectations at 211,000. CNBC's Rick Santelli, the number of people already collecting who continued getting checks,

that's called continuing claims. Well, that dropped, hinting that more people found new jobs in the past week. Crypto traders are pushing up Bitcoin to start 2025. Bitcoin prices starting the new year in the green now, but still below that record high of just north of $108,000. Bitcoin prices are at $96,600. Now, that boost is causing shares of crypto-aligned stocks like MicroStrategy and Coinbase to move up as well. CNBC's Dominic Chu. Would-be homebuyers starting the new year facing mortgage rates pushing 7.1%, according to Mortgage News Daily.

The housing market was hoping for a big boost from the Fed cutting interest rates, but mortgage rates do not follow what the Fed does. They loosely follow the 10-year Treasury, and yields are higher. Mortgage demand positively cratered to end 2024, thanks to a sharp rise in mortgage interest rates. While December is typically the slowest month of the year for home sales, these numbers again are seasonally adjusted and that annual comparison is showing considerable weakness. There are more homes on the market now than there were last year

at this time, but many of those homes have been sitting for months due to higher prices and again these higher mortgage rates. CNBC's Diana Olick, Jessica Ettinger, CNBC. Jim Cramer is the benefit you get that you can't get anywhere else. He has a unique ability to know the market, explain it to people. It's a great value. Get invested. Join the club today. Go to CNBC.com slash join Jim.