CNBC Business News Update - Market Open: Stocks Higher, Home Depot Outlook Disappoints, Starbucks Shares Soar on New CEO 8/13/24

Episode Date: August 13, 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 Ettinger. CNBC. Inflation cooled at the wholesale level last month and stocks are higher. Bond yields are falling. The Dow up 177 points, almost a half percent. The S&P 500 index is up 45 points. That's eight-tenths of a percent. And the Nasdaq is soaring 212 points now. That's one and a quarter percent. The PPI, producer price index, came in lower than forecast. PPI for July came out at up one-tenth of a percent on headline. Cooler than expected. If we look at ex-food and energy, it was unchanged. Zero. Goose egg. That is the least month over month going back to minus 110 in March of 23. CNBC's Rick Santelli. Here's University of Michigan economics professor Betsy Stevenson on CNBC. The big decline was in the trade services. Big decline in food and alcohol, the component within trade services. So prices are having to adjust and we have to figure out how much we can charge consumers

and how much of a margin you can take. We are in a period where things are stabilizing. This is the kind of movement that you're going to see. CPI tomorrow, the consumer price index. Struggling Starbucks has replaced its CEO, looking to a new leader to clean up the operation. Critics say Starbucks has become a slow coffee shop with dirty stores and high prices. The new man at the top of Starbucks is leaving his job at the top of Chipotle. It's Chipotle CEO Brian Nicol. Look, this guy's a dream come true, okay? I mean, he came in at Chipotle with Chipotle, I don't know if you remember, which is in disarray.

Yeah. And he fixed the organization. Well, that's what Starbucks needs. I come back and I just say this stock this morning, which is up $11 billion, Starbucks, even though Chipotle's lost $6.1 billion, is correct. It's correct. Because when you get someone this monumental running the company, there's hope for change. CNBC Mad Money host Jim Cramer.

Brian Nicol took over Chipotle back in March of 2018. The stock is up more than 700 percent. Loxman Norissaman took over Starbucks in March of last year, and shares are down almost 20 percent. But Starbucks shares are popping today. Home Depot says it expects sales to weaken as consumers grow more choosy about their spending. The company starts the cycle of retail earnings reports and Walmart's results are coming tomorrow. One retail expert reminds investors that Home Depot really had it going on in the pandemic. The Home Depot, the home improvement category, benefited significantly during the pandemic. Demand trends spiked higher. I think now we're

just in that post-pandemic reset. Oppenheimer's Brian Nagel on CNBC. Paramount Global employees officially told Today that the company's slashing 15 percent of its workforce. Jobs are going across the movie studio, CBS TV, CBS News, sports and cable channels like MTV and Comedy Central. Google hosting its annual Made by Google product event today. Earlier than it has in the past to beat Apple this fall, new Pixel phones and watches are expected. McDonald's out with collector's meals today with free nostalgic cups. That, like other Mickey D's merch, may be worth money someday. The cups feature nostalgic brands like Barbie, Hot Wheels, Beanie Babies, and more. Jessica Ettinger, CNBC. The Investing Club. We're not about trading.

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