CNBC Business News Update - Market Open: Stocks Lower, December Retail Sales Solid, Strong Bank Of America Results 1/16/25

Episode Date: January 16, 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. After opening in the green this morning, the markets have turned all red. The Dow down 136 points, down three-tenths of one percent, being led lower now by shares of United Health, down almost three percent. The S&P 500 index down 12 points, the Nasdaq down 61 points. Shares of Nvidia in the green up about a half percent. Retail sales for December, the holiday month rose. They missed estimates. Online sales continue to be strong. Electronics were a little muted.

The numbers look good, though, when you take out vehicle sales. X autos, it remains up four tenths. Very solid reading. If we go X autos and gas, up three tenths. Very solid reading. If we go X autos and gas, up three tenths, another solid reading. And the core, the control number, up seven tenths. That's a very good reading. CNBC's Rick Santelli. Slightly more people than expected applied for unemployment benefits last week, but still below the pre-pandemic weekly average. Earnings season rolls on. Morgan Stanley and Bank of America each out with strong quarterly results. Microsoft's CEO, the latest to get some face time with

incoming President Donald Trump. According to reports, Satya Nadella dined with the president and vice president-elect along with Elon Musk at Mar-a-Lago yesterday. The reports say Trump and Nadella discussed AI and cybersecurity, including Microsoft's pledge to invest $80 billion on AI data centers worldwide. CNBC's Silvana Hanau and that Trump-Musk-Microsoft dinner came as outgoing President Joe Biden issued a warning about an oligarchy forming. The president looking to frame his presidency and his 50-year career in politics, commenting on the peaceful transition of power,

climate change, and that Middle East peace deal. The president also warning of what he describes as, quote, a dangerous concentration of power in the hands of very few ultra-wealthy people. Today, an oligarchy is taking shape in America of extreme wealth, power, and influence that literally threatens our entire democracy, our basic rights and freedoms, and a fair shot for everyone to get ahead.

Biden added it sets a dangerous stage if the abuse of power is left unchecked. CNBC's Frank Holland. Spirit Airlines cutting 200 jobs. It's a bankruptcy cost-cutting scramble. State Farm insures more homes in Los Angeles than any other company, and it made a curious announcement while the fires still burn. It told me it has paused the notification process on homeowner non-renewals in the area affected by the fires. The homeowner policies affected by the fires that were on the books on January 7 will have an option to renew with State Farm for another policy term. It's unclear to me how monumental that decision is

because the State Insurance Commissioner last week had ordered a moratorium on non-renewals, telling insurance companies they weren't permitted to tell these affected properties that they would no longer have insurance. So it may just be this is State Farm announcing that it's following the instructions from the insurance commissioner. CNBC's Contessa Brewer. Fox has added Tubi to its Super Bowl distribution, setting a Tubi takeover that includes a live stream of the game. It's a free ad-supported service.

The Fox Broadcast Network is the main place to see the game, which will also be on the NFL's digital platforms. Jessica Ettinger, CNBC. The second inauguration of President Donald Trump and the impact on American business. Becky Quick, live in Washington with influential investors, including Stanley Druckenmiller and Elon Musk biographer Walter Isaacson.

Monday starts 9 a.m. Eastern, CNBC.