CNBC Business News Update - Market Open: Stocks Lower, Investors Wait For Nvidia Results, Target Tanks 5/22/24

Episode Date: May 22, 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 Ettinger, CNBC, Wall Street in the red this morning. Everybody's on hold for NVIDIA results later this afternoon after the closing bell. The Dow down 30 points. The S&P 500 index down three points from a record high. The Nasdaq down two points from the record high it opened with. Investors are waiting for that AI bellwether to report results. NVIDIA after 4 p.m. Eastern. I think you do want to be diversified from this. Look, NVIDIA is beaten by 20 percent a quarter for the last four quarters on average. Expectations are

very high and having so much concentrated, not just an AI theme, but NVIDIA's one stock, they'd be a risk in many investors' portfolio. Schwab's Jeffrey Kleintop on CNBC. Target shares are tanking. After mixed quarterly results, shoppers are shunning the high grocery and other prices at Target. They're going elsewhere. Ultimately, the shopper is just pushing back. It's come to a point that prices for a lot of these core commodity goods in sectors like grocery are just too high. And the shopper is retreating to value-based retailers where Walmart and Costco seem to be more price competitive. And that's exactly why you saw that Target announcement earlier this week of lowering prices on those

5,000 goods. Forrester's Sucharita Kodali on CNBC. Here's CNBC's Mad Money host, Jim Kramer. Walmart's really spread far afield from Target. Target is to some degree is missing the mark. Maybe they have to up their game a bit. It just may not have such special merchandise that it can compete against a really revitalized Walmart. Luxury homebuilder Toll Brothers shares are higher on strong quarterly results. The homebuilder raising full-year guidance thanks to what it calls a resilient economy, favorable demographics, and a housing supply shortage. Boosting its forecast for homes built by 300 units after beating estimates for the previous quarter.

CNBC's Frank Holland. Shares of Urban Outfitters were higher on better-than-expected results. Shopify shares higher on an analyst upgrade. And shares of Lululemon dropping. On news its chief product officer was leaving, according to the Wall Street Journal. America's roads are filled with aging cars more than 12 years old. 12.6 years, according to S&P Global Mobility. They've never been higher than this. Three things are driving this. First of all, the reliability of vehicles built after 2000. It's not uncommon now to see a 2011, let's say RAV4 that's out on the road and still running very well. You've also got new vehicle prices close to a record high, add in high financing costs,

high insurance costs. And a lot of people are saying, you know what? I'm good with what I'm driving right now. CNBC's Phil LeBeau. BNPL firms, buy now, pay later companies, also called pay-in-for firms, like a firm Klarna Afterpay and PayPal Pay-in-for, they will have to comply with U.S. credit card laws for the first time. The Consumer Financial Protection Bureau says consumers must be guaranteed refunds for returned products, they must have merchant disputes investigated. And they must be able to see fees clearly shown on bills. Amazon plans to overhaul its decade-old voice assistant, Alexa,

by souping it up with AI and then charging a monthly fee for it. Another 160,000 student loan borrowers will have their collective nearly $8 billion in debt forgiven by the Biden administration. The relief comes after improvements to the very hard-to-access Education Department's public service loan forgiveness program, often helping teachers, firefighters, and police officers. Jessica Ettinger, CNBC. The Investing Club. We're not about trading. We're about investing. Get invested. Join the club today. Go to cndc.com slash gymsclub.