CNBC Business News Update - Market Open: Stocks Lower, Bond Yields Higher, Abercrombie & Fitch is Hot Again 5/29/24

Episode Date: May 29, 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. Bonds are higher, stocks are lower on Wall Street. The Nasdaq opened at a fresh record high this morning, over 17,000 for the first time before pulling back. The Dow falling 378 points, 1%. The S&P 500 index down 41 points, that's eight-tenths of a percent. The Nasdaq down 116 points, six tenths of one percent. And investors say, yeah, it's the bond yields. Every time we get excitement over the possibility, we get a decline in yields. And then we get a reality check. We see a backup in yields.

And we have a 10-year yield back above four and a half percent, which seems to be sort of a trigger line. Blake Lee's Peter Buchvar on CNBC. Abercrombie & Fitch is a hot brand again. It posted its strongest first quarter ever as sales jumped 22 percent. Dick's Sporting Goods raised its guidance and says shoppers are spending more on sneakers and athletic gear. American Airlines shares were tanking 12 percent in early trading today after it cut its outlook for the current quarter. This is a pretty big miss on the revenue. You know, American just a month ago was guiding for really strong, maybe not strong, but not this bad, for their unit revenue growth.

And to come out and essentially double what the unit revenue decline is going to be year over year, that's kind of not what we're seeing from other major airlines. So there is kind of a divergence there, and investors are trying to parse this today. CNBC's Leslie Josephs. Major oil deal today. ConocoPhillips buying Marathon Oil. It's an all-stock deal worth $17 billion. It will bolster ConocoPhillips shale assets.

Weekly mortgage demand dropped to a three-month low last week. The rate on a 30-year fixed home loan ticked solidly above 7% last week. It's back below today. Watching shares of Starbucks today after a report that claimed customers can wait 40 minutes for a drink. Chatter about understaffing? Yeah, and this Bloomberg article about the waiting times. It's suboptimal. It's a suboptimal situation.

But the stocks aren't going down that much. People waiting 40 minutes for Starbucks coffee. See, now you can read that totally opposite. You can say that coffee's so darn good. Has the stock bottomed at this point, though, after that quarter and what happened? It's trying to bottom. CNBC's Jim Cramer with David Faber and Carl Quintanilla. Starbucks shares then ticked higher at the open this morning. Chewy shares popped on stronger than expected quarterly results for the pet products retailer. We get the Fed's

beige book this afternoon. That's a report on current economic conditions around the country. Investors will look to see what may be ahead for the Fed and interest rates. The Federal Trade Commission lawsuit against Amazon, accusing Amazon of enrolling customers into Prime and charging them when they didn't want to join, can go forward. A U.S. judge is rejecting Amazon's request to dismiss an FCC lawsuit accusing the company of enrolling millions of customers into its paid prime program without their consent. The lawsuit, which was first filed in June of 2023, also accuses Amazon of deceptive practices, intentionally making it hard for consumers to cancel their prime accounts. CNBC's Silvana Hanau, Jessica Ettinger, CNBC. I just love this game. So excited to share with the world. The Olympics from Paris starts July 26th on NBC and Peacock.