CNBC Business News Update - Market Open: Stocks Lower, June Inflation Cooler, Costco Raising Membership Fees 7/11/24

Episode Date: July 11, 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. Inflation cooled again in June, down from May, helping the case for lower interest rates, but stocks are pulling back in early trading. The Dow down 51 points, the S&P 500 index down a point, and the Nasdaq down 19 points. Both the S&P and the Nasdaq opened with fresh record highs this morning. Inflation came down one-tenth of one percent in June from May. The CPI, Consumer Price Index, at its lowest level in more than three years. Let's look at year over year.

Three percent, three percent. To find a smaller number, you're going to March of 21 when it was 2.6. CNBC's Rick Santelli. It will cost more at Costco, though, because the chain is raising membership fees. Costco is hiking membership prices for the first time since 2017. As of September 1st, an annual membership will now cost $65. That's $5 more than the current price. The higher tier plan will increase by $10. And Costco says the fee increases will affect about 52 million memberships,

a little over half of which are in those higher tier. CNBC's Kelly Evans. PepsiCo earnings beat quarterly estimates, but U.S. demand weakened for beverages and its Quaker Foods and Frito-Lay products as consumers pushed back on those high prices. PepsiCo, I think that they raised price too much. The consumer is balking at the price of potato chips. Pepsi volume down 3.5, Frito volume down 4. But they made it up. They made it all up in price. I've got to tell you, I think they may be out of value. I think they literally have to kind of make it so that they do cut price a little bit. CNBC Mad Money host Jim Cramer and CNBC's Carl Quintanilla.

Pfizer moving ahead with testing a once-daily version of its weight loss pill. After some setbacks with that, most of the weight loss medicines are injectables. Delta shares were struggling after the airline's outlook fell short of estimates. Even with super strong travel demand for the summer. The CEO tells CNBC those low airfares this summer, a result of too many airline seats for the number of flyers, well, those fares won't likely be around this fall. The industry brought more capacity for this summer between June and August. You see the discounters particularly discounting heavily, but the industry is already correcting for the oversupply so that by the end of August, we expect in September, our domestic unit revenues are going to be back inflecting positive once again.

Delta CEO Ed Bastian on CNBC. Virginia is America's top state for business 2024, dethroning North Carolina. Virginia, America's top education system. School spending still lags, but classes are small and higher ed is first rate. America's third best infrastructure. The power grid has issues, but Virginia finishes in the top five for business friendliness, but not friendly enough to land the Washington wizards and capitals across the Potomac. It's easier and better to do business in Washington, D.C. than it is to do in Virginia. Virginia has America's ninth best workforce overall, but a problem there too. Too many workers moving out, not enough moving in.

Virginia has a population migration problem. The data is irrefutable. Still, Virginia is tops this year. That's CNBC's Scott Cohen. The full report, and you can see how your state did at CNBC.com. Jessica Ettinger, CNBC. When you're at your very top speed, it feels like you can run forever. And then there's this one moment where everybody else starts to die, and you're like, I'm not about to die. I'm about to get faster. The Olympics from Paris starts July 26 on NBC and Peacock.