CNBC Business News Update - Market Open: Stocks Lower, Investors Brace For Tariff Announcement After Markets Close, Private Payrolls Increased More Than Expected In March 4/2/25

Episode Date: April 2, 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 stocks are lower out of the gate ahead of today's Trump tariff announcement. The Dow down 250 points more than a half percent. Nvidia shares leading it lower down more than 2 percent. The S&P 500 index down 41 points. That's three quarters of a percent and the Nasdaq falling 162 points. That's eight tenths of one percent CNBC mad money host Jim Kramer has been talking to business leaders about the president's tariff agenda. I hear people say that it's really morphed into we're going to raise a lot of money and you're going to get a tax cut. The tariff announcement comes from the White House Rose Garden after the markets close at 4 Eastern today.

Full live coverage on the CNBC app, CNBC TV and CNBC.com. The White House says the tariffs will take effect immediately and Americans are bracing for higher prices and possibly higher inflation. It's going to be nearly impossible for us not to see prices increase at the grocery store. What's interesting though is if you have a retailer, say like a Target or a Walmart, maybe they want to hold the price on an avocado, but maybe they raise it somewhere else, right? That's sort of how they work with their portfolio of items. It may not be exactly clear when those higher costs come out for us product by product. Groceries operate on a very, very thin margin somewhere between 1 and 3%. I think we could be in for a sticker shock. CNBC's Courtney Reagan.

The auto tariffs already announced take effect today. 25% on cars not made in the US and 25% on parts not made in the US too. People are still wondering how much of that increase will be absorbed by the car makers or maybe by the dealerships.

We're going to find out pretty quickly once we work through the How much of that increase will be absorbed by the car makers or maybe by the dealerships? We're going to find out pretty quickly once we work through the inventory in dealer lots right now. Probably by the middle of May I would imagine. For the automakers the question is how much can they produce here in this country to mitigate the impact of the new trade war? And that means who has the most or the least amount of production in the United States for the vehicles that they sell here. Look, Jaguar Land Rover makes nothing here. Mercedes-Benz and Hyundai, both under 40 percent. On the flip side, Ford, almost 80 percent of the vehicles it sells in this country are built in this country. And then you have Honda as well.

CNBC's Phil LeBeau. More jobs than expected were created by private companies in March at 155,000 in the new ADP payroll report. It's coming in a little bit hotter with good sector doing pretty well to 24 and the service sector powering 132,000 business services up 57. Financial activities doing well, manufacturing up 21. Leisure and Hospitality down at 17s. It's been the one that's been leading. And now other sectors look to be stepping up. Educational Health Services up by 12,000.

CNBC Senior Economics reporter Steve Leesman. The government's March jobs report will be out Friday morning. Tesla out today with disappointing new car deliveries in the first quarter at $336,000. That's a 13% drop from the same quarter last year. Tesla is facing waves of protests and boycotts in response to CEO Elon Musk's political antics and work in the Trump administration. The NFL with a third Christmas Day game to be streamed for 2025.

Netflix will have its usual double header, but Prime will stream a third game because Christmas falls on a Thursday this year, and it's part of Amazon's Thursday night football contract. The NFL schedule for 2025 will come out around mid-May. Jessica Edinger, CNBC.