CNBC Business News Update - Market Midday: Stocks Rally, June Inflation As Expected, 3M and Bristol Meyers Squibb Strong Earnings 7/26/24

Episode Date: July 26, 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, Wall Street ripping this afternoon. The Dow up 713 points, almost 2%. The S&P 500 index up 72 points, 1.3%. The NASDAQ up 220 points. Add a, whatever it is, 5% pullback in the S&P 500, 10% in many NASDAQ, you know, bellwether names. And you worry when that happens, is something more sinister afoot? If something more sinister is afoot, there's absolutely no evidence of it. So that leads me to believe that what you've seen over the last two weeks

is just a garden variety pullback, not even a correction, and that the rally in the markets is not over. Labenthal's Jim Labenthal on CNBC. And here's Hightower's Stephanie Link, who says earnings play a part. No, I think it's earnings. I think you've had a couple of good companies have report of decent earnings today. 3M, Bristol-Myers. I will just point to the economic data that has come in.

It's textbook soft landing. They're at 2.8% GDP. And so I actually think that in that world, you can see earnings growth of like 8 to 10%. In a 2 to 3% GDP world, you can see that kind of growth. And that's why the stock market's going higher. The Fed's key inflation gauge rose 2.5% in June from a year ago, right on the money for expectations. The personal consumption expenditures, PCE data, that's important for the Federal Reserve. It could help open the way for a widely anticipated September interest rate cut. We've made nice progress. You see that yields have moved lower on this.

That really is the tell here. CNBC's Rick Santelli. Bristol-Myers Squibb beat earnings estimates, raised its outlook. The company's cutting costs. It has some successful drugs, including the blockbuster blood thinner Eloquus. Dexcom shares plunging almost 40 percent. The company coming off disappointing quarterly results lowered its guidance. Dexcom makes continuous glucose monitors for patients with diabetes. The company says it's short a large number of new patients.

Some believe GLP-1 weight loss and diabetes drugs may be making a dent. New in theaters for the weekend, an anticipated blockbuster, Disney, Marvel's Deadpool and Wolverine. Jessica Ettinger, CNBC. Squawk Box from Paris. Don't miss exclusive interviews. Deadpool and Wolverine. Jessica Ettinger, CNBC.