CNBC Business News Update - Market Open: Cautious Trading For Stocks, Key Inflation Reports Ahead This Week, Mega-Deal To Create World's Largest Ad Agency

Episode Date: December 9, 2024

The latest in business, financial, and market news and how it impacts your money, reported by CNBC's Peter Schacknow

I'm Peter Schach, now CNBC. and NASDAQ are coming off record closes, but investors are likely to turn cautious with two key inflation reports ahead this week, as well as a Fed policy meeting next week. Former Boston Fed President Eric Rosengren expects the Fed's view on interest rate cuts in 2025 to have changed from earlier in the year. In September, they were expecting four cuts over 2025. My own expectation is they're going to lower that probably to two. And that's going to reflect the uncertainty about what fiscal policy is going to be in the coming year. And also that if you look at core prices, core PCEs flattened out at a level that's a bit higher than they want. A mega deal in the ad industry sees Omnicom buying Interpublic Group in a

transaction that will create the world's largest ad agency. It's structured as a stock swap deal valuing Interpublic at about $13 billion. The combined company will use the Omnicom name. Shares of Interpublic are jumping nearly 14% this morning. Another stock with an early jump is retailer Macy's gaining 4.5%. Activist investor Barrington Capital has taken a stake in Macy's and is pushing for a variety of changes, including a possible sale of Bloomingdale's. Private equity firm Apollo Group and human resources specialist Workday will become the newest members of the S&P 500 later this month. Apollo shares have jumped more than 5% this morning, while Workday is up 8.5%. Peter Schach now, CNBC.