CNBC Business News Update - Market Open: Stocks Lower, McDonald's Shares Tank On e. Coli Outbreak, Boeing $6 Billion Quarterly Loss 10/23/24

Episode Date: October 23, 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 Edinger, CNBC. Wall Street's in the red this morning. A lot of big-name stocks are falling. The S&P 500 index is coming off two down days in a row. That hadn't happened since early September. The Dow is down 283.5% this morning, being led lower by shares of McDonald's, plunging 6%. The S&P 500 index down 21 points, the Nasdaq down 94 points.

McDonald's shares are tanking after the CDC says an E. coli outbreak is linked to quarter pounders. 49 cases, 10 states, 10 hospitalizations, and someone has died. McDonald's USA President Joe Erlinger spoke on the Today Show. You know, it is the quarter pounder and two ingredients on that quarter pounder that are under investigation by the CDC. So, you know, I want to say to our consumers that you can confidently go to McDonald's today. He was also asked if more cases could turn up. You will rely upon the CDC, obviously, to do their investigations and to do their tracing. It is important to note that the onset dates for this disease are between, at this point,

September 27th and October 11th. If there has been a contaminated product within our supply chain, it's very likely worked itself through that supply chain already. Investors are not confident that the public will still eat at McDonald's. It may take a while for sales to bounce back based on other E. coli outbreaks at other chains. Chipotle, that took 18 months before people were to come back. Jack in the Box, very similar. Same thing with Taco Bell. It's an 18-month period.

Now, the one thing is that this is one death. It's isolated. Not since October 11th that we've seen anything. They think it might be the onions. It's not the hamburger. They think it might be the onions. It's not the hamburger. They think it might be these states. It's not that. It's Baird and Guggenheim downgraded

just simply because there's too much unknown. CNBC Mad Money host Jim Cramer. Coca-Cola out with better than expected quarterly results saved by charging higher prices. Boeing reported a more than $6 billion loss in just the last quarter as striking machinists are voting today on a new tentative contract. The vote is important. It's more important in terms of our long-term getting back to building airplanes, delivering good airplanes. And so we've worked really hard to find that overlap where we've got a deal that the employees can feel good about and the company can be successful going forward.

So I'm very hopeful for the vote. We'll hear later on tonight. Boeing CEO Kelly Ortberg on CNBC. Starbucks shares were sliding after the coffee chain said sales fell again in the quarter. It's not giving any forecasts. The new CEO is Brian Nickel, who came from Chipotle. He's working on a turnaround plan. Tesla and IBM each report quarterly results after the closing bell today. Denny's says it's closing about 150 low-performing restaurants by the end of next year, about 75 of those before the end of this year. The Powerball jackpot tonight, $478 million. Jessica Ettinger, CNBC.