CNBC Business News Update - Market Open: Stocks Lower, Nvidia Struggles, Car Dealership Hack 6/21/24

Episode Date: June 21, 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. NVIDIA struggles for a second day on Wall Street. Major averages are lower on this first full day of summer trading. The Dow down 60 points this morning. The S&P 500 index down 17. The NASDAQ is down 39 points. NVIDIA shares pulling back by more than 2% this morning. It's a big options expiration day today, some reweighting

and rebalancing happening in the markets. Plus, with NVIDIA and other chip makers continuing to pull back, NVIDIA is no longer the most valuable company in the world. So the makings for a enough for now moment for the momentum sector of the market was absolutely there. NVIDIA obviously embodies everything in an amplified way as well, opens up three and a half percent, ends up down three and a half percent on the day. I think you can sort of be prepared for the at least possibility that this could result in rotation as it did yesterday, or it could create a little bit more of a more chop. CNBC's Mike Santoli. Meantime, an AI chip maker to rival NVIDIA,

Cerebros, has confidentially filed to sell shares to the public. Car sales are in trouble across the country after hacks into the software that dealerships use. Car dealerships across the U.S. will likely be out of service for days. Billions of dollars and soon to be trillions that are tied up, that can't be funded, that are frozen. And it's going to start affecting manufacturers, the finance companies. And that's the big downfall here because if you can't fund these contracts and pay off these cars that are sitting on a floor plan, you've got an issue. Celebrity motor car CEO Tom Maioli speaking on last call.

This is following a second major cyber attack. Reportedly, there is no estimated time frame for a resolution. Now, thousands of car dealerships rely on CDK software to run their day-to-day operations. CNBC's Silvana Hanau, used car retailer CarMax, posted a 33% drop in first quarter profit. Profitability has just gotten worse in the used car business as more new vehicles continue to come on the market after the pandemic, pushing used prices down. Mall chain Forever 21 looking for rent concessions at various locations as the fast fashion brand faces financial issues.

Delta Airlines investors are profiting from the company's success post-pandemic. Delta Airlines is raising its quarterly dividend by 50 percent to 15 cents a share. The payout represents an annual yield of about 1.2 percent based on yesterday's closing price. Delta reinstated its dividend at June of 2023 at 10 cents a share after suspending those payments during the pandemic. CNBC's Frank Holland. Bugatti's first ever hybrid hypercar priced at 4.1 million dollars. The Tourbillon, the Volkswagen unit, is dominant in hypercars. Jessica Ettinger, CNBC. The Olympic Games are coming, but first the best American athletes have to make Team USA. The U.S. Olympic Team Trials on NBC and Peacock.