CNBC Business News Update - Market Open: Stocks Lower, President Trump Fires Fed Governor, Trump Administration Eyes Taking Stakes In Defense Contractors 8/26/25

Episode Date: August 26, 2025

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 Eddinger, CNBC. Major averages all in the red this morning, building on their losses from yesterday, but just slight losses. The Dow down 22 points. Apple shares leading it lower. They're down 1% this morning. The S&P 500 index down 8 points, and the NASDAQ's down 50 points. That's a quarter percent. InVIDIA shares pulling back by a third of a percent.

InVIDIA will report quarterly results after the closing bell tomorrow. investors are watching as President Trump attempts to fire a Fed governor accused of mortgage fraud. She says she's not going anywhere. The president's been pressuring the Fed to lower interest rates. He does get to appoint replacements for anyone who leaves. Some say hoping to sway the vote on the committee. First, is she guilty of anything? We do not know that yet.

There are allegations. I don't think you're going to have seen any proof yet that's been made public. And we should all keep that in mind. We're speculating here with a big if. Secondly, there's a question of the President's power to fire a Federal Reserve governor for cause. And what is the definition of for cause? Most people thought for cause is for some misbehavior in office, not an alleged misbehavior as a private citizen.

Former Fed Vice Chairman Roger Ferguson on CNBC. Durable goods orders fell again last month, but not as much as expected after that devastating drop. in June. These are things made to last a long time like washing machines and airplanes. Gold is pacing for its best month since last April, and gold mining stocks are on pace for their best month in about a year and a half. Intel is now 10% owned by the U.S. government in an unprecedented move, possibly toward a sovereign wealth fund. And Commerce Secretary Howard Lutnik told CNBC that the government's eyeing defense contractors next.

Oh, there's a monstrous discussion about defense. I mean, Lockheed Martin makes 97% of their revenue from the U.S. government. They are basically an arm of the U.S. government. There's a lot of talking that needs to be had about how do we finance our munitions, acquisitions, but I tell you the way it has been done has been a giveaway. Commerce Secretary Howard Lutnik on CNBC. Interior Airlines is expanding and going after struggling rival spirits customers with 20 new routes. Here's the CEO of Frontier with CNBC's Phil Leboe. With their future in doubt, you're clearly making a play for those customers. Why not just make a play for spirit? Why not go out and say, you know, what, we want to buy you again? I'm not here to talk about M&A, but I am here to talk about how exciting the news we have of expanding and we see a clear path with

spirits adjustments. Very, if spirit collapses, how much of their market share do you pick up? think we would pick up the majority. If you look on a nonstop basis, over half of their customers can fly us with the changes we've made. It's an 85% on a connect basis. That's Frontier Airlines CEO Barry Biffle on CNBC. Eli Lilly's weight loss pill has cleared its latest trial. Paving the way for FDA approval, pills are much cheaper to manufacture, perhaps cheaper for patients to buy, although the efficacy may be less than injections. A busy Labor Day holiday weekend. ahead at the nation's airports. TSA expects to screen more than 17 million flyers between Thursday and Wednesday of next week, including nearly three million this Friday alone,

beating last year's numbers. No powerball winner last night. The new jackpot, $815 million, the seventh largest in the history of that game. The next drawing is tomorrow night. Jessica Eddinger, CNBC. CNBC is the network for ambitious people.