CNBC Business News Update - Market Open: Stocks Higher, Trump Bad Mouths Putin And EU Trade Talks Get Serious, Tesla Sales Tank In Europe 5/27/25

Episode Date: May 27, 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 Edinger, CNBC, Wall Street rallying this morning after bond yields pulled back and after President Trump announced a delay on tariffs for European Union goods coming into the U.S. The Dow up 357 points, eight-tenths of a percent being led higher by shares of Nvidia, up almost 2 percent. The S&P 500 index up 64 points, it's a little more than 1%, and the NASDAQ up 252 points. That's 1.3%.

It was a whipsaw weekend for investors watching trade talks between the EU and the US. President Trump started bad-mouthing Russian President Putin over the weekend over its unprovoked assault on Ukraine. You get Putin as bad guy, then suddenly Europe has a reason to make a deal. Just a radical reverse. Think about where we were Friday.

The president got very angry. Other than the deal with nip on steel, there really was nothing positive. We started hearing that the Senate's going to disagree with the House bill. Then suddenly wake up to a possible deal? CNBC's Jim Cramer and after a phone call with an EU official, President Trump backed off Friday's announcement of new 50% tariffs on goods coming in from Europe starting this Sunday. They're delayed till July now. You're right to point out it's just a phone call because the threat still looms large

that the tariffs could be enacted if there's no deal. But the reality is we have escalated to a fresh high on the DAX today, record territory for the German stock market. We have been rallying on the Italian stock market and on France too. So it feels as though the markets are really very much as pricing in the positive scenario

that you've got Trump here that blinked when it came to China and hopes that he will too roll over when it comes to Europe because it is such a large trading block. But a ton of different issues to solve here around food standards. That is a big one for the Europeans. They don't want to take those standards down too much. So still lots of issues to conquer here. CNBC's Karen So in London, one of the big problems with American food exports is meat. in London. One of the big problems with American food exports is meat. Europe doesn't want hormone raised beef and acid washed chicken, according to the New York Times. Tesla's sales in Europe have plunged 49% on brand damage and rising competition. That is huge and it continues a decline of what we see. Elon Musk's involvement with Doge and with the White House has caused

some brand damage here in Europe and that's really affected sales. We saw some protests in March outside some Tesla dealerships across Europe as well. But also there's a number of other issues. There's rising competition, particularly from Chinese players like BYD, who have very aggressively expanded into the market. There's also the fact that Tesla has a very aging lineup of cars. CNBC's Arjun Karpal. Durable goods orders dropped the most in almost a year and a half in April. These are things made to last a long time like airplanes and washing machines. It indicates a pullback in spending on big ticket items.

India's iPhone exports to the U.S US soared by 76% in April. Apple is trying to move some more production away from China. Southwest Airlines will start charging for checked bags on booked flights starting tomorrow. So if you plan to fly Southwest anytime soon, buy your ticket by tonight to avoid bag fees. The first bag will cost you 35 bucks, the second $45. Southwest is ending more than a half century

of two bags fly free for all. The Indy 500 on Fox grabbed the most viewers in 17 years. The New York Times says the marketing for the race started during the Super Bowl three months ago. Paramount's Mission Impossible and Disney's Lilo and Stitch helped create a record Memorial Day weekend at the box office.

ComScore says there were six films at theaters and it was a total quarter billion dollar take. Lilo and Stitch edged out Tom Cruise for the top spot, but Mission Impossible's an hour longer and had fewer showings. Jessica Edinger, CNBC. You come to my show and you learn how to do stocks. Mad Money, weeknight 6 Eastern, CNBC.