CNBC Business News Update - Market Open: Stocks Higher, Wholesale Inflation Slightly Hotter in June, Bank Earnings Mixed 7/12/24

Episode Date: July 12, 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 Ellinger. CNBC investors are digesting bank earnings this morning. Earnings season is on and they're dealing with the market rotation plus hotter than expected inflation at the wholesale level. The Dow is up 137 points. The S&P 500 index up 13 points. The Nasdaq clawing back some of yesterday's losses. It's up 53 points this morning. The producer price index is a measure of inflation at the wholesale level. Headline PPI for June up two-tenths, up two-tenths of a percent. It's only the highest since April when it was up half of one percent. If we strip out food and energy, it's hot. Up four-tenths, double expectations. CNBC's Rick Santelli. PPI can measure input prices, which can hint at whether consumer prices might be going up down the road. Earnings season, of course, has started with JPMorgan Chase reporting quarterly results topping second quarter revenue expectations after investment banking fees surged by more than 50% from a year earlier.

It had a drop in profit, though, and shares were lower. Citigroup beat expectations for profit and revenue. Its investment banking fees soared up 60% from the same period last year. Wells Fargo shares are lower after a 9% drop in net interest income. That's a key measure of what a bank makes on its lending business. Wells Fargo, I think there are a lot of investors, though, who are still lined up there for what is yet to come in terms of the benefits of the turnaround that's taken place under Charlie Scharf,

although this is not a quarter, I guess, that's going to particularly excite them. CNBC's David Faber. AT&T has been hacked. More than 100 million customers' phone numbers and who they called and texted are out there. AT&T revealing a big data breach. The company says data from 109 million accounts was illegally downloaded in April. That includes records of calls and texts from almost all of AT&T's cellular customers during a period in 2022. Though the company says the content of the calls and texts

wasn't disclosed and neither was personal information like social security numbers, AT&T says the FBI is investigating the breach and at least one person has been arrested after call logs were copied from a third-party platform hosted by Snowflake. Shares of Snowflake are lower on this news. CNBC's Melissa Lee. Tesla shares were struggling again today on a delay in a robo-taxi product. Consumer spending on credit cards last month was down from May, partly because prices are lower. We see continued spending by consumers, but we see moderation. The inflation in the economy is lingering on the services side, but on the good side, even on food, it's mostly come down and flattened. So there's real growth in there, but on the good side, even on food, it's mostly come down and flattened.

So there's real growth in there, but it's moderated, and I think consumers are being much more deliberate. The National Retail Federation's Matt Shea on CNBC. It's National French Friday. Plenty of deals and discounts at chains, mostly through their apps or websites. The American Century Celebrity Golf Tournament began this morning in Lake Tahoe, Nevada.

New in theaters, Gold Dove's horror film Lumina. Neon's horror thriller Long Legs. And Columbia's comedy romance Fly Me to the Moon. Jessica Ettinger, CNBC. When you're at your very top speed, it feels like you can run forever. And then there's this one moment where everybody else starts to die. And you're like, I'm not about to die. I'm about to get faster.

The Olympics from Paris starts July 26th on NBC and Peacock.