CNBC Business News Update - Market Open: Stocks Lower, GOP Meeting With President On Big Tax Cuts, Home Depot Analyst On Tariff Price Increases 5/20/25
Episode Date: May 20, 2025From 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. Ancho...red by CNBC's Jessica Ettinger.
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I'm Jessica Edinger CNBC. Wall Street is slipping out of the gate this morning. The Dow down
81 points. Nvidia shares leading it lower down more than 1%. The S&P 500 index down
19. The Nasdaq down 87 points, just about a half percent. President Trump on Capitol
Hill meeting with Republican lawmakers at this hour about his big beautiful bill, which includes a large tax cut, which will increase the deficit, which is why
Moody's downgraded the US credit rating last weekend. Here's CNBC's Jim Kramer
and Carl Quintanilla. Jim, his comments about tax cuts kind of collide with what
we heard from Moody's, what, 48 hours ago? It does and I think everybody wants tax
cuts, it's kind of universal, but we've seen interest rates every time we hear what 48 hours ago? It does and I think everybody wants tax cuts.
It's kind of universal, but we've seen interest rates
every time we hear those discussions go up.
This is one that's in our face.
The idea that you at this very moment
want to say largest tax cut, that's our job,
is to say, look, this is going to make it
so rates can go up, which makes it so there's a lot
of bad things that happen in the economy.
CNBC Mad Money host Jim Kramer with Carl Quintanilla.
Levi Strauss selling its Dockers brand
to management firm Authentic Brands Group,
which controls Reebok and Nautica.
Home Depot's CFO tells CNBC they intend
to generally maintain pricing levels. Home
Depot does source a lot of its cost of sales to say in the
United States. Okay, so that that protects them. But what's
happening here is there's a lot of innovation in home
improvement, introducing new, better, more innovative products.
Those products are higher priced and the products that
replacing and they can sort of say big the tariff in there. So
I do think you're gonna see some price increases
at Home Depot, but I think the company's very well positioned
given its domestic sourcing and frankly,
the power Home Depot has over its suppliers.
So the suppliers will eat more of these costs.
Oppenheimer's Brian Nagel on CNBC.
JP Morgan CEO, Jamie Dimon said in the bank's investor day
yesterday that the markets are too complacent on tariffs.
He expects S&P 500 earnings growth to collapse.
General Motors says it'll stop exporting vehicles built in the U.S. to China.
Tariffs on the American cars are high there.
GM doesn't send so many, so it's just ending the shipments.
Subaru raising prices on several models passing along the Trump tariffs.
Increases range from $750 to $2,000.
Subaru imports 45 percent of the cars it sells in the U.S.
Earlier this month, Ford did the same thing and raised prices on some of its vehicles.
Viking Cruises shares were falling, even with better than expected quarterly results.
Its outlook is weaker.
Netflix, bringing in Sesame Street, but the show will still air on PBS.
The state of Nebraska banning soda and energy drink purchases
made with SNAP benefits, commonly called food stamps.
The Trump administration issued one of the first ever waivers
to a state to enable that change, which starts next year.
Other states want to ban candy and other junk foods,
according to Nebraska Public Media. that change, which starts next year. Other states want to ban candy and other junk foods,
according to Nebraska Public Media.
Southwest will require passengers
to keep portable chargers visible on flights.
Starting next Wednesday, the goal is to stop fires
from starting inside overhead bins.
That's the same day free bags on Southwest go away.
Jessica Ettinger, CNBC.
CNBC.
Live ambitiously.