CNBC Business News Update - Market Open: Stocks Higher, Berkshire Hathaway Higher, Former Starbucks CEO Posts Company Fix Online 5/6/24

Episode Date: May 6, 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 Edinger, CNBC, Wall Street in the green after coming off a winning week in a Friday rally. On a solid jobs report last Friday and falling bond yields, the major averages are higher out of the open. The Dow up 189 points, a half percent. The S&P 500 index up 22 points, four tenths of a percent. The Nasdaq is up 58 points. That's a third of a percent. S&P 500 got some relief last week. Obviously, yields coming down.

The earnings have worked through pretty well. Some of that moderate economic data. So far, doing okay. We're right at the 50-day moving average. CNBC's Mike Santoli. Berkshire Hathaway shares higher after the company's weekend. Investors meeting tens of thousands attended in Omaha, Nebraska. Operating profit in the last quarter there grew 39 percent.

Berkshire is sitting on a record pile of cash. It sold some of its stake in Apple and has almost $200 billion on the sidelines. Ninety-three-year-old Berkshire Hathaway CEO Warren Buffett meantime outlined his succession plan at the company's meeting. He told investors after he's gone, Greg Abel will be making the call on investing decisions. Paramount shares popping this morning on a report the owner of Paramount Pictures and CBS Entertainment started formal acquisition negotiations with a group led by Sony Pictures and Apollo. Disney reports quarterly results today after the closing bell. They're on a path.

They're on a path. They're on a path for growth. Headed the right way. I think so. I mean, remember, they just came out of this brutal proxy fight. And, you know, they spent the last year restructuring, or Bob Iger spent the last year restructuring, and now the focus is on growth.

Bank of America Securities, Jessica Reif-Ehrlich with CNBC's Joe Kernan. Meat producer Tyson Foods is higher today on better-than-expected quarterly results, although revenue was slightly down. Spirit Airlines shares ticking lower on a mixed quarter and a weaker-than-expected forecast for revenue for this current quarter. Starbucks shares were higher after former CEO Howard Schultz posted a note on LinkedIn saying the coffee chain needs to fix its U.S. operations. And he also wrote how to go about doing that.

Starbucks shares have been reeling from disappointing results. Boeing set to launch its Starliner to the International Space Station tonight from Kennedy Space Center in Florida if the weather holds. Launch window opens just after 10.30 p.m. Eastern. This will be Boeing's first flight with humans on board, two American astronauts heading to the ISS. Starliner aims to compete with SpaceX. SpaceX is four years ahead. Universal's The Fall Guy was number one at the weekend box office. Universal is a sister company to CNBC. Jessica Ettinger, CNBC.

Earnings season, the quarterly numbers as they break. The scorecard for the American economy. Earnings season on CNBC.