CNBC Business News Update - Market Open: Stocks Higher, Durable Goods Orders Pop, Burger King Readies $5 Value Meal 5/24/24

Episode Date: May 24, 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, trying to claw back some of yesterday's stock losses. The Dow up 101 points. The S&P 500 index up 21 points. The NASDAQ up 68 points, almost a half percent out of the gate this morning. Yesterday's strong economic data dashed. Investor hopes that interest rates will be going down, which sent the Dow to its worst day of the year yesterday in that 600 point drop. I kind of thought we were over the Fed. And clearly yesterday, after NVIDIA's results, it was a Fed induced sell off based on basically somewhat stronger economic numbers. I think Powell

has done a pretty good job. And overall, the Fed has done a reasonably good job at saying, listen, hikes are probably off the table. Maybe we have to wait a little bit longer, but frankly, if it's December, in terms of the first cut, it doesn't really matter that much. Horizons' Scott Ladner on CNBC. Durable goods orders came in stronger than expected. That data out this morning, these are orders for things made to last a long time, like airplanes and washing machines.

Gas prices are lower heading into the long holiday weekend. The national average at $3.61 for regular. AAA says that's down five cents a gallon over the past month. Oil prices are lower too. U.S. crude back to about where it was at the end of February, about $76 a barrel. TSA says about three million people are at or heading to airports today. Go early because TSA was screenings were up 7% yesterday. Bernstein's David Vernon on CNBC and some analysts say many Americans are just trying to save money any way they can as some are stretched financially, especially at the lower

income levels. We're seeing increased pressure on the consumer going into this Memorial Day and summer season. First of all, you've got the lower end consumer that's pretty much fixed here and they're in real stress. Got credit cards maxed out. We think that people are going to spend more time in their cars, make shorter trips, trade down in terms of whatever hotels they use, trade down in terms of restaurants, have more barbecues. The conference board's Steve Odland on CNBC. The Burger Wars may be back. Burger King with a $5 value meal, just as McDonald's is working things out with franchisees to launch one of its own next month. The BK Your Way meal will include a choice of three sandwiches or nuggets with fries and a

drink. Burger King reportedly plans to run the deal longer than McDonald's will. Car insurance premiums have jumped at their fastest pace since the 1970s, but Bank of America says relief could be on the way. The increases were a response to underwriting losses in the industry, and those hits have largely already been passed on to consumers. And now that vehicle prices and parts costs are returning to normal, premiums can normalize too. New in theaters for the long holiday weekend,

Sony's The Garfield Movie and Warner Brothers' Furiosa A Mad Max Saga. Jessica Ettinger, CNBC. The Investing Club. We're not about trading. We're about investing. Get invested. Join the club today. Go to cndc.com slash Jim's Club.