CNBC Business News Update - Market Midday: Stocks Rally, Investors Shrug Off Slightly Lower Consumer Sentiment and Slightly Hotter Wholesale Inflation, AT&T Hack 7/12/24

Episode Date: July 12, 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 Ettinger, CNBC. Stocks are higher this afternoon on Wall Street. Investors see the rally broadening outside of tech stocks. Although Nvidia and Tesla are each up today, the Dow hit a fresh all-time high. The Dow is up 311 points. It's above 40,000 for the first time since May at 40,067. The S&P 500 index up 43 points and the NASDAQ up

166 points. Companies who shares at fresh all-time highs today include News Corp, Hilton, Royal Caribbean, TJ Maxx and Marshalls parent TJX Companies, Ross Stores, Amgen, Eli Lilly and Regeneron. Investors largely shaking off. A slight tick down in University of Michigan consumer sentiment. And a slight tick up in wholesale inflation for June. The producer price index. Headline PPI for June up two-tenths, up two-tenths of a percent. It's only the highest since April when it was up half of one percent.

If we strip out food and energy, it's hot. Up four-tenths, double expectations. CNBC's Rick Santelli, PPI can measure input prices, which can hint at whether consumer prices might be going up down the road. Earnings season, of course, has started with JPMorgan Chase reporting quarterly results topping second quarter revenue expectations after investment banking fees surged by more than 50% from a year earlier. It had a drop in profit, though, and shares were lower. Citigroup beat expectations for profit and revenue.

Its investment banking fees soared up 60% from the same period last year. Wells Fargo shares are lower after a nine percent drop in net interest income. That's a key measure of what a bank makes on its lending business. Wells Fargo, I think there are a lot of investors, though, who are still lined up there for what is yet to come in terms of the benefits of the turnaround that's taken place under Charlie Scharf, although this is not a quarter, I guess, that's going to particularly excite them. CNBC's David Faber. AT&T has been hacked.

More than 100 million customers' phone numbers and who they called and texted are out there. AT&T revealing a big data breach. The company says data from 109 million accounts was illegally downloaded in April. That includes records of calls and texts from almost all of AT&T's cellular customers during a period in 2022. Though the company says the content of the calls and texts wasn't disclosed and neither was personal information like social security numbers, AT&T says the FBI is investigating the breach and at least one person has been arrested

after call logs were copied from a third-party platform hosted by Snowflake. Shares of Snowflake are lower on this news. CNBC's Melissa Lee. Tesla shares were struggling again today on a delay in a robo-taxi product. Consumer spending on credit cards last month was down from May, partly because prices are lower. We see continued spending by consumers, but we see moderation. The inflation in the economy is lingering on the services side, but on the goods side, even on food, it's mostly come down and flattened. So there's real growth in there, but it's moderated, and I think consumers are being much more deliberate.

The National Retail Federation's Matt Shea on CNBC. It's National French Friday, plenty of deals and discounts at chains, mostly through their apps or websites. The American Century Celebrity Golf Tournament began this morning in Lake Tahoe, Nevada. New in theaters, Gold Dove's horror film Lumina, Neon's horror thriller Long Legs, and Columbia's comedy romance Fly Me to the Moon. Jessica Ettinger, CNBC. When you're at your very top speed, it feels like you can run forever.

And then there's this one moment where everybody else starts to die, and you're like, I'm not about to die. I'm about to get faster. The Olympics from Paris starts July 26th on NBC and Peacock.