CNBC Business News Update - Market Open: Retail Sales Jump, Stocks Surge, Buffett Buys Beauty

Episode Date: August 15, 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 Peter Schacknow

I'm Peter Schach, now CNBC. Stocks are rallying to start the day following some upbeat economic data. The Dow up 512 points to 40,520. The S&P 500 jumping 55 points for 1% and the Nasdaq 1.1% higher, or about 198 points. Retail sales rose 1% last month, more than double what economists had expected. CNBC senior economics reporter Steve Leisman says that's calmed fears that the economy is weakening. A lot of things have now pointed to the idea that the July jobs number that spooked everybody about growth was maybe an outlier in terms of how much weakness there was.

I don't see a whole lot of weakness here, but really this is a story that says the consumer is relatively strong and we don't have underlying weakness in the jobs market. And fears about the labor market have been calmed somewhat after the government reported that first-time claims for jobless benefits fell by 7,000 last week to 227,000. That's lower than consensus predictions. With this data in hand, market watchers continue to predict the Fed rate cut at its next meeting in September. There are still more economic numbers ahead this morning. At 10 Eastern time, the National Association of Home Builders will release its monthly look at home builder sentiment. Shares of Walmart are surging about 8.5 percent after the retail giant reported better than expected profit and revenue for the second quarter.

It also raised its outlook for the second time this year, as its inexpensive household items attract more consumers. And shares of Ulta Beauty are jumping 12.5%. That follows news that Warren Buffett's Berkshire Hathaway took a new stake of 690,000 shares in the cosmetics company during the second quarter. Peter Schach now, CNBC. The Investing Club. We're not about trading. We're about investing. Get invested. Join the club quarter. Peter Schach now, CNBC.