CNBC Business News Update - Market Open: Stocks Higher, 3M Higher On Strong Results, Trump's Tariff Warning 1/21/25

Episode Date: January 21, 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. Wall Street back at it after yesterday's Martin Luther King holiday. Markets are higher out of the gate this morning. Stocks are coming off a Friday rally. The Dow up 153 points, being led higher by shares of Walmart up about a half percent. The S&P 500 index up 28 points. The Nasdaq up 102 points. 3M shares are higher.

The Dow Components out with strong quarterly results. Airlines are scrambling today. The Deep South facing a rare winter storm, threatening heavy snow, sleet and ice. President Trump did not slap tariffs on everything coming into the U.S. from China, Canada and Mexico when he took office yesterday. But he has a warning, at least for Mexico and Canada. The president not giving any explicit orders on tariffs for China, but he did say he may impose duties on Mexico and Canada by February 1st. We're thinking in terms of 25 percent on Mexico and Canada because they're allowing vast numbers of people. Canada's a very bad abuser also. Vast numbers of people to come in and fentanyl to come in.

When do you think he would enact those? I think February 1st. On his first day back in the White House, he signed nearly 50 executive orders. They included a pause on any action against TikTok for 75 days. We're sending nearly 80 Biden-era orders, including ones related to diversity, immigration and climate. CNBC's Frank Holland. TikTok up and running today in the U.S. after it went dark for a few hours over the weekend. The Chinese app sits on the phones of half the U.S. population. It was banned as a national security risk and the Supreme Court upheld

the law. The president is toying with intensified tariffs on China to force the app's owner to sell it to a U.S. company or at least find a U.S. partner. As the new Trump administration works toward extending the 2017 tax cuts, many of which sunset at the end of this year, some lawmakers say that'll make the national debt issue worse. Well, I think it Some lawmakers say that'll make the national debt issue worse. Well, I think it's hard for them to make the argument simultaneously that they're concerned about the national debt and then to propose adding $4 trillion to the national debt through a tax cut. And this last tax cut, TCJA, they borrowed the money for it. Can you imagine

borrowing $2.3 trillion to give a tax cut? When you look at the distribution tables, overwhelmingly it went to people in higher income brackets. The tax cuts have contributed mightily to the national debt. Massachusetts Congressman Richard Neal, the lead Democrat on the Ways and Means Committee on CNBC. Former Chief of Staff to Vice President Mike Pence, Mark Schwartz, said tax cuts are going to be a long fight because not all Republicans are on board. I think expectations and markets are Republican House, Republican Senate, Republican White House. This is going to get done quickly. It's not going to get done quickly.

It is incredibly complicated. It's very tight margins in the House. And it's going to be a long, long year on the Hill trying to get this accomplished. Bitcoin hovering around 104,000 today. Homebuilder D.R. Horton shares up on strong quarterly results. Georgia's poultry industry trying to handle an outbreak of bird flu. In a surprise at the quiet Martin Luther King weekend box office, Sony's female buddy comedy, One of Them Days, was number one in ticket sales. Jessica Ettinger, CNBC. CNBC's Big January continues with the World Economic Forum in Davos,

plus Fast Money Live from Miami and the first Fed decision of the year. Start the year ahead of the game. CNBC.