CNBC Business News Update - Market Open: Stocks Higher, Disney Disappoints, Apple iPad Refresh 5/7/24

Episode Date: May 7, 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. Major averages all in the green this morning. The Dow up 68 points, the S&P 500 index up 12 points, and the Nasdaq is up 31 points. Leading the Dow higher, shares of Apple up more than 1%. Disney, one of the few Dow stocks in the red, down 9% this morning. It says its streaming service, Disney+, nearly broke even in the last quarter and theme parks were strong. But the company moved to a loss in its second quarter on restructuring expenses. Maybe most heartening of all was the improvement in direct-to-consumer streaming. Last year, that business lost about $600 million. Overall, streaming was up 12%. We'll go down a little bit in Q3 based on some ICC cricket rights out of India. And then in Q4,

we will be back to profitability and we'll build on that in 25. Disney CFO Hugh Johnston on CNBC. Meantime, Disney and CNBC parent comcast reportedly using an advisor to help settle the valuation for hulu comcast has agreed to sell its stake in hulu to disney but the two can't agree on a price apple announcing new ipads today ipad sales they've been down five of the last six quarters don't expect anything serious on ai from this event because the real AI announcement isn't expected until June 10th at an in-person developers conference at Apple headquarters. Bloomberg reported to expect a refresh of all the iPad models with the iPad Pro expected to have the biggest upgrade, including the same slick screen technology that you already have on your iPhone. And that thing is probably going to cost a fortune. CNBC's Steve Kovach, Apple's also expected to unveil what it calls a magic keyboard

that could make iPads more useful, as one big complaint's been that it's cumbersome to type on the screen. Shipping giant Maersk says a Baltimore port reentry decision's getting closer. Cleanup of the collapsed key bridge continues. The port reopening could happen by the end of the month. Fewer than 200 containers were taken off the ship, the dolly that crashed into the bridge. And there's hope the recovery team can float the boat back to port. Boeing scrapped its Starliner capsule launch last night. Two astronauts were on board ready to go to the International Space Station, but a valve issue with the rocket postponed everything.

Boeing's trying to catch up to SpaceX, which is about four years ahead in space missions. Boeing, meantime, faces a new FAA investigation over those 787 Dreamliner jets. Regulators are opening a second investigation into Boeing, taking a look at whether or not its employees falsified records for some of its 787 Dreamliner jets. According to the FAA, Boeing may not have completed some inspections of its 787s to confirm, quote, adequate bonding and grounding where the wings of the jet meet the body. Boeing says any issues do not make the jets unsafe. CNBC's Silvana Henao. Jessica Ettinger, CNBC. Earnings season, the quarterly numbers as they break. The scorecard for the American economy. Earnings season on CNBC.