CNBC Business News Update - Market Open: Stocks Higher to Start 2025 Trading, Jobless Claims Lowest Since April, Oil At Highest Since Mid-October 1/2/25

Episode Date: January 2, 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 by CNBC's Jessica Ettinger.

I'm Jessica Ettinger, CNBC. Stocks rise to start 2025 trading. It's also the first business day of the year, the first day of the first quarter. The Dow soaring 283 points, a half percent led higher by shares of Nvidia, up 2%. The S&P 500 index up 28 points back above 5,900. The NASDAQ is up 73 points. That's four tenths of 1%. A strong 2024 is in the books. The S&P 500 returned more than 23% for the second year in a row, a very rare occurrence. This year, though, stocks could pull back.

I think this is a year for a correction. I think the end of the year, I'm not saying we'll a correction. I think the end of the year, I'm not saying we'll be in a correction by the end of the year, but it's been a long time since I've called something like that. Wharton professor Jeremy Siegel on CNBC. Oil popping to its highest since mid-October, topping $73 a barrel. Drivers could see a tick higher in prices at the pump. AAA says the national average for a gallon of regular today is three dollars and six cents. Twenty five U.S. states average gas at two ninety nine or less. The fewest number of people since last April applied for unemployment benefits last week as the job market remains strong. Initial jobless claims comes in 10,000 like to expectations at 211,000.

CNBC's Rick Santelli, the number of people already collecting who continued getting checks, that's called continuing claims. Well, that dropped, hinting that more people found new jobs in the past week. Crypto traders are pushing up Bitcoin to start 2025. Bitcoin prices starting the new year in the green now, but still below that record high of just north of $108,000. Bitcoin prices are at $96,600. Now, that boost is causing shares of crypto-aligned stocks like MicroStrategy and Coinbase to move up as well.

MicroStrategy has had slid about 12% this week after pulling back with its weekly Bitcoin purchases. So Bitcoin prices, MicroStrategy, Coinbase very much in focus here with a bid in the green. CNBC's Dominic Chu. Would-be homebuyers starting the new year facing mortgage rates pushing 7.1% according to Mortgage News Daily. The housing market was hoping for a big boost from the Fed cutting interest rates, but mortgage rates do not follow what the Fed does. They loosely follow the 10-year Treasury and yields are higher.

Mortgage demand positively cratered to end 2024, thanks to a sharp rise in mortgage interest rates. While December is typically the slowest month of the year for home sales, these numbers again are seasonally adjusted, and that annual comparison is showing considerable weakness. There are more homes on the market now than there were last year at this time, but many of those homes have been sitting for months due to higher prices and, again, these higher mortgage rates.

CNBC's Diana Olick. Apple reportedly discounting iPhones in China as competition with homegrown smartphones heats up. The discount? About $70 on the iPhone 16 Pro or Pro Max. Huawei and other Chinese companies are matching or beating Apple in smartphone sales in that country. Meantime, Apple TV Plus will be free to stream for three days worldwide for people to watch or catch up on original series like Severance Shrinking, Ted Lasso, and The Morning Show. Variety says the free period begins Friday

and runs through Sunday. Golf fans rejoice. The PGA Tour season opened this morning. The Century is on in Lahaina, Hawaii. Jessica Ettinger, CNBC. Jim Cramer is the benefit you get that you can't get anywhere else. He has a unique ability to know the market, explain it to people. It's a great value. Get invested. Join the club today. Go to cnbc.com slash join Jim.