CNBC Business News Update - Market Open: Stocks Higher, Wkly Jobless Claims Highest Since Last Summer, Disney & Warner Bros Discovery Team-Up 5/9/24

Episode Date: May 9, 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. The Dow now poised for a seventh straight winning day. Its longest winning streak since last year. The Dow is up 200 points, a half percent. The S&P 500 index up 20 points now, four-tenths of a percent. And the NASDAQ popped into the green in late morning trading, up 44 points. That's one-third of one percent. Jobless claims jumped last week to their highest since last summer.

Initial jobless claims came in hotter than expected. We're looking for a number around 210,000, 231,000, the largest amount of initial claims since the last week in August. CNBC's Rick Santelli. The insurance industry is on alert. Every day for the past 14 days, a tornado has touched down in the U.S. The outbreak causing multiple millions in damage.

Insurers are bracing for this climate change reality as the new normal. Premiums will reflect it. Warner Brothers Discovery shares lower on a disappointing quarter, but streaming is doing better and it's teaming up with frenemy Disney for a streaming bundle. Streaming was a bright spot. The company added 2 million direct-to-consumer streaming subscribers and streaming ad revenue grew 70% in contrast to the 8% decline in TV networks ad revenue. CEO David Zaslav explained the intention of this new bundle

of Macs and Disney Plus and Hulu that's now in the works. We expect this product will help increase retention and lower churn and thus support higher customer lifetime values. We don't have details on pricing or a launch date for this bundle, but Zaslav called the price both attractive and reasonable. CNBC's Julia Borsten. British chip designer Arms shares were lower on a slightly lower outlook for revenue. TikTok says it'll finally label AI-generated video and photos after so many people already bought fake Kelly Clarkson-endorsed weight-loss junk products,

but the creator of the fake AI videos has to agree to use the technology that TikTok will use to label everything. And that may not happen. More speculation over what might happen with struggling Paramount Global, the parent company of CBS and Paramount Pictures. The New York Times is reporting that if Sony Pictures and Apollo Global's $26 billion bid for Paramount succeeds, the two plan to break the media company up. The Times says that could include selling off the CBS broadcasting network cable channels as well as its Paramount Plus streaming service, but that the new owners would keep the movie studio.

CNBC's Silvana Hanau. Neuralink's first inhuman brain implant has experienced problems just weeks after being put into a 29-year-old. The Elon Musk company posted in a blog that the brain-computer interface has small threads that have retracted from the patient's brain tissue. The goal in the end is to help paralyzed people control external technologies with their minds. AMC Entertainment shares lower after the movie theater chain reported both attendance and revenue dropped in the last quarter compared with the same quarter last year. Ford's fix for a fuel leak on tens of thousands of Broncos and escapes has regulators concerned the leak can cause engine fires and the company's fix is to put a drain tube inside to move fuel away from hot engine parts and then let it leak on the ground.

Safety experts want Ford to address the root cause of the leak. Jessica Ettinger, CNBC. It's the first ever CNBC Changemakers Summit. Hear how this year's changemakers are reshaping business and redefining leadership. Some woman needs to be president of this country, and it'll be a better country for it. Saturday, 5 p.m. Eastern on CNBC.