CNBC Business News Update - Market Open: Stocks Lower, McDonalds CEO Addresses e. Coli Outbreak For First Time, Google Parent Alphabet Results After Closing Bell 10/29/24

Episode Date: October 29, 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 by CNBC's Jessica Ettinger.

I'm Jessica Ettinger, CNBC. Stocks lower on Wall Street out of the gate after yesterday's winning day for the major averages. The Dow down 181 points. It's almost a half percent. It's being led lower by shares of Home Depot, which are down more than 2 percent. The S&P 500 index down 18 points. The Nasdaq down 41 points. Bond yields are higher back where they were in July, the 10-year at 4.3%. Bitcoin hit its highest since June at more than $71,000 gold, approaching its intraday record high. Investors, some of them anyway, waiting for a magnificent seven company to report quarterly results after the closing bell today, that'll be Google parent Alphabet. So I don't have a lot of expectations for Alphabet.

Ad is decelerating. Search is decelerating. There's a lot of competition coming from Amazon's Prime Video ads. So I think what we want to do this quarter is just get through it unscathed and hear how the company guides for next year. Laffer Tengler's Nancy Tengler on CNBC. McDonald's out with a tough quarter. It did reverse same-store sales declines in the U.S. with some promotions and discounts, but the Golden Arches is facing new E. coli headlines this

morning. A 15-year-old girl in Colorado battling kidney failure from eating a quarter pounder earlier this month. The E. coli outbreak that sickened at least 75 people in 13 states, killing one, seems to be contained. Onions were isolated as the source. CNBC's Kate Rogers was on today's earnings call with the CEO. CEO Chris Kamchinski addressing the issue right at the top of the call with analysts. It's the first time we've heard from him since this E. coli outbreak last week, telling analysts that the situation appears to be contained. Adding the Colorado Department of Agriculture confirmed Sunday they did not detect E. coli from McDonald's beef patties, which supports its own investigation that rules the beef out as the source. Kempchinski adding that he is confident that they can return quarter pounders to menus, which they are set to do this week.

Meantime, a crisis management expert tells CNBC McDonald's has done all the right things. I mean, in a crisis situation, all people care about is hazard. When you find out that the company has isolated the problem, when you find out that they have pulled the product, that they know exactly what it is, I think that there's a very good chance that sales rebound very, very quickly. Because if you look at McDonald's history, they really have had a shockingly small number of cases like this. Dezenhall Resources Principal Eric Dezenhall on CNBC. JetBlue shares are down on a disappointing forecast for this current quarter as travel demand slows. They're expecting fourth quarter revenues, current quarter ones, to be down three to seven

percent on a year-over-year basis. That was worse than expected, so that's driving a lot of the downside. JetBlue shares down five and a half percent. CNBC's Dominic Chu. PayPal shares were dropping on disappointing results. Ford reported better than expected results last night after the closing bell, but its outlook is at the low end of its full year earnings forecast. Halloween week heat across the U.S., shattering October records. About 100 new record highs through the holiday on Thursday. New York and Washington, D.C. are forecast for highs near 80 on Thursday, as trick-or-treaters in the Northeast may not need to bundle up like they did years ago. World Series Game 4 tonight in New York.

The Dodgers lead over the Yankees is three games to none. The Dodgers could sweep tonight. Jessica Ettinger, CNBC. Earnings season. When the CEOs have a big announcement, they come here first. A wild hour of earnings. Earnings season. Special coverage all this month on CNBC.