CNBC Business News Update - Market Open: Stocks Higher, American Airlines Shares Lower After Crash, US Economy Slower In 2024 Than Expected 1/30/25

Episode Date: January 30, 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 and reported by CNBC's Jessica Ettinger.

I'm Jessica Edinger, CNBC, Wall Street with modest gains in morning trading after the Fed held interest rates steady yesterday, hinting it is a little more worried now about inflation coming back up. The Dow up 78 points, being led higher by shares of IBM, which are soaring. They're up 11 percent on strong quarterly results. The S&P 500 index is up 28 points. That's about a half a percent. The NASDAQ up 77 points. That's four-tenths of 1%.

American Airlines shares are lower after a regional jet with 64 people on board collided in midair with a Blackhawk military helicopter last night, moments before the jet was set to land at Washington's Reagan Airport. No survivors are expected to be found. The transportation secretary did say that he believes this collision was preventable. As for the experience of the pilots, here is American CEO Robert Isom. These are experienced pilots. I know that the captain had six years with PSA or almost six years with PSA and the first officer almost two years. And again, standard approach. And that's about all I can say.

You heard him say PSA. PSA Airlines is the subsidiary of American that operates the regional jets. All right. So what happens next? The NTSB is leading the investigation. The focus is on recovering the black boxes. That has so much information that we just don't have at this point. That's CNBC's Phil LeBeau.

The U.S. economy grew at a 2.5% pace last year, slower than the year before, and slower than expected. Still a solid pace. It's the latest GDP gross domestic product report. So this was a squirrely number going in. I'll tell you why. The trade report we got yesterday was very negative. It was very, it was a big surge in imports. What I can't say is it doesn't look like that negative trade showed up in this report. I'm not really sure why. Bottom line, I think, is that from an economic or macroeconomic standpoint, I think this is a pretty good report. CNBC's senior economics

reporter Steve Leisman. The number of people who applied for unemployment benefits last week unexpectedly fell. Cuts have been held in check, although Facebook parent Meta announced it's cutting 5% of its workers. Companies like GM, Boeing, and Cargill all announced firings ahead of the holidays. Southwest Airlines out with better-than-expected quarterly results after raising airfares. Comcast, the parent company of CNBC, beat earnings forecasts for the quarter but reported disappointing broadband and Peacock streaming subscriber numbers. Tesla reported a profit in its Bitcoin holdings of $600 million after a digital assets accounting rule change, and that pushed shares higher,

even with a disappointing quarter when it comes to selling cars. Gold hit a new intraday record high, $2,817 an ounce. The Super Bowl in New Orleans is an attractive target for potential attacks. ABC News obtained a new security assessment issued by state and federal agencies internally ahead of the game. The Fire Aid Benefit Concert is tonight in Los Angeles, 10 Eastern, raising money for wildfire relief. Jessica Ettinger, CNBC. Earnings season, the quarterly numbers as they break. The scorecard for the American economy. Earnings season on CNBC.