CNBC Business News Update - Market Open: Stocks Lower, ADP Says Fewer Jobs Created In December, Insurance Industry Monitoring LA Wildfires 1/8/25

Episode Date: January 8, 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. Wall Street in the red this morning. The major average is extending yesterday's losses. Quantum stocks are struggling. After NVIDIA's CEO said quantum computing won't have real benefits for as long as 15 more years, the Dow is down 94 points, being led lower by shares of Johnson & Johnson, which are down almost 3%. The S&P 500 index down 7 points. The Nasdaq is down 5 points.

NVIDIA shares are ticking higher. They're up 1.5% this morning. While the full year 2024 was strong for the S&P 500 index, December wasn't so great. Here's one outlook. The old admonition, as goes January, so goes the rest of the year, hasn't necessarily held every year when you actually dig into the numbers. But it's very normal, even in uptrending markets, to have a 5 or 10 percent pullback.

We had that little scare back in August where we pulled back, but we've had a lot of very low volatility days in the last year or so. So that wouldn't be unexpected at all. BMO's Carol Schleif on CNBC. A slower pace of hiring in December. Payroll firm ADP says 122,000 new private sector jobs were created. This December report definitely represents a downshift, but it's still a solid number. Pockets of weakness are something to

watch. Manufacturing shed jobs for three consecutive months. That's concerning. What's doing the heavy lifting in services is no longer leisure and hospitality. We think that game is over. It's really health care. ADP economist Neela Richardson on CNBC. Meantime, fewer people than expected applied for unemployment benefits last week at 201,000, and that's well below the pre-pandemic weekly average of about 225,000. The job market remains resilient. President-elect Trump could declare a national economic emergency a presidential power to justify universal tariffs on all goods coming into the U.S. This is being reported by CNN.

The insurance industry is watching as tens of thousands of people have evacuated their homes and businesses in Los Angeles because of rapidly growing wildfires sweeping across an affluent section of the city. California Governor Gavin Newsom declaring a state of emergency as powerful winds in the Los Angeles area whip up wildfires. At least 30,000 residents have been forced to evacuate as the Palisades fire continues to grow. CNBC's Silvana Hanau, there are three fires, the Palisades, Altadena and the Eaton Fire. Mortgage rates are at their highest since last summer at 7.1 percent today according to Mortgage News Daily. That's on average for a 30-year fixed loan. Mortgage demand fell off a cliff last week. Netflix says it's Squid Game season two racked

up views at the fastest pace of any of its shows in history. More than 126 million views in 11 days. Girl Scout cookie season is here. This will be the final year for s'mores and toastier flavors. Girl Scouts selling the cookies can earn badges for business and financial literacy. Jessica Ettinger, CNBC. Essential investing tools for wealth management. cnbc global market news and analysis tailored to your holdings become a smarter investor with the power of cnbc pro go to cnbc.com get pro now