CNBC Business News Update - Market Open: Stocks Lower, December Jobs Report Much Hotter Than Expected, "Venu" Streaming Service Dies 1/10/25

Episode Date: January 10, 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 Edinger, CNBC. Wall Street ugly this morning. Treasury yields are spiking higher, pushing stocks lower. The jobs report for December came in hotter than expected. The U.S. labor market is strong. Investors are thinking the Fed will not be lowering interest rates as much as they had hoped. The Dow down 350 points, three-quarters of a percent, led lower by shares of Nvidia, which are down 3%. The S&P 500 index down 57 points, just about 1%. And the NASDAQ down 270 points. That's almost one and a half percent.

With the Fed, we are already down from hoping for four rate cuts this year to two. And I think today's number is going to take us well below two to one zero, or maybe even talking about rate hikes. These higher yields are a head wind for the markets, also stronger dollars. So that's also kind of a negative here, which is why the markets are down. Nuveen's Sarah Malik on CNBC. The U.S. added more than a quarter million new jobs in December, and the unemployment rate fell to 4.1%. That's very near 50-year lows. A strong job market means inflation could stay high. This is because people are working. And when they work, they tend to spend, killing investors' hope for interest rate cuts by the Fed. Summed up by the CNBC Squawk Box anchor, Joe Kernan.

You know, there are tailwinds and headwinds to everything we talk about. Any hopes for, what were we supposed to? We were going to get four or five rate cuts at one point, right? Then we're down to two. Now we're down to one. And we actually just talked about the possibility that there could be zero. And by the end of the year, who knows? With, you know, with tariffs and immigration, you could actually be seeing interest rate

hikes if inflation stays hot. Wildfires in the Los Angeles area continue to burn out of control on pace to become the costliest fire disaster in U.S. history. J.P. Morgan estimating that insured losses may exceed $20 billion with more uninsured. The Palisades fire alone causing catastrophic damage in the affluent Pacific Palisades neighborhood. That has a median home price of more than $3 million. State Farm has the most market share with 8 million policies in California. Farmers a close second, travelers, Allstate, Chubb, and USAA in the top 10. Now, years ago, Chubb began managing down its exposure in the regulated market. That's

where the rates have to be approved. Instead, it writes property insurance for high net worth individuals, which are not subject to that regulatory rate approval. AIG and Pure Insurance also target those high-end policies that we could see getting hit from the fires. Most importantly about all of this is will the California insurance market hold? That is the primary question when it comes to where do we go from here? CNBC's Contessa Brewer. Disney, Fox and Warner Brothers calling off their new joint sports streaming service. It was supposed to be called Venue. In a statement, they're saying, quote, after careful consideration, we've collectively agreed to discontinue Venue Sports joint venture and not launch the streaming service.

Of course, all of this comes after the decision for Disney to effectively buy Fubo. Perhaps maybe this puts Disney in an even stronger position to some degree and that all of these sports products might ultimately come through Fubo. We don't know that right now. CNBC's Andrew Ross Sorkin. The Detroit Auto Show begins today as automakers show off their finest. Jessica Ettinger, CNBC. Essential investing tools for wealth management. Plus, CNBC global market news and analysis tailored to your holdings.

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