CNBC Business News Update - Market Open: Stocks Lower, Boeing Shares Lower On 787 Crash, Unemployment Claims Highest Of The Year 6/12/25

Episode Date: June 12, 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 Erringer, CNBC Wall Street lower across the board out of the gate this morning. President Trump threatening unilateral tariffs on U.S. trading partners in two weeks. Investors are worried higher inflation is coming. The Dow is down 232 points. It is being led lower by shares of Boeing, which are down almost 5% this morning on a crash in India. The S&P 500 index, down 15 points but still above 6,000. The S&P 500, the NASDAQ is down 45 points. That's a quarter percent. Nvidia shares are higher out of the gate, up a half percent.

So Boeing shares are dragging the Dow lower. After an Air India Boeing 787 Dreamliner crashed less than a minute after takeoff in Ahmedabad, it was heading to London. All 242 people on board are said to be lost. The jet was loaded with fuel, hit the ground and exploded. It was the first crash for the 787 model. The weather was clear by all indications, so it really does come down to a couple of things.

Was it a mechanical or software issue with the plane and or the engines? Was it pilot air? Those are all things that investigators will be focused on. The Dreamliner, as well as the engines that powered this aircraft, they both have stellar track records. Yes, there were problems with the Dreamliner early on. Problems when it's lost altitude. As for the engines, which are made by GE Aerospace, the GENX-1B engine,

it has a strong track record. So investigators will get the cockpit data recorder, the voice recorder, those will give the biggest pieces of information. CNBC's Phil LeBeau. Inflation at the wholesale level. Four-May came in hotter year over year in the new PPI report, the Producer Price Index. And more people than forecast applied for unemployment benefits last week, the highest number this year. 248,000 on initial claims. As we inch ever closer to 250,000, you have to go back to October of last year to find a higher number. And we all know what that was.

October of last year, you're talking about 250,000. That's CNBC's Rick Santelli. Here's former U.S. Treasury Secretary and current IBM Vice Chairman Gary Cohn on CNBC with his take right after the numbers came out. The number that's most concerning to me is the claims number. We've got to start paying attention to the fact that the job market clearly feels like it is slowing down. Looking at the continuing claims number, it's moving in the wrong direction too. The number of people still collecting unemployment checks notched its third week above 1.9 million, suggesting it's taking people longer to

find that next job. Oil prices pulled back this morning after yesterday's 5 percent spike. On unrest in the Middle East, President Trump wanted to deal with Iran, but military confrontation may happen first. The Pentagon ordered Americans evacuated out of Baghdad, Kuwait and Bahrain as Iran's defense minister warned Tehran could strike American assets in the region if attacked. Fintech company Chime IPOs today issuing stock to the public for the first time priced at $27 a share. The company provides online banking services, but it's not a bank. It

has been criticized on social media for lacking fraud protections, which the company says it's been working on. U.S. Open Golf, round one on in Oakmont, Pennsylvania today. Jessica The club is really about empowerment. What I like about Jim is he makes it easy for someone like me to understand how to invest my money properly. Boo-yah Jim! Get invested! Join the club today. Go to cmdc.com slash join Jim.