CNBC Business News Update - Market Open: Stocks Lower, Rivian Pops On VW Investment, 16 Nobel Prize-Winning Economists Issue Warning On Possible Trump Presidency 6/26/24

Episode Date: June 26, 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 Edinger, CNBC. A little pullback out of the gate this morning on Wall Street. The Dow down 128 points, a third of a percent. It is below 39,000 now. The S&P 500 index down 14 points, quarter percent. The Nasdaq falling 28 points. Investors starting to assess how stocks might do in the second half of the year, which starts Monday after a very strong first half. Rivian shares popped as much as 50 percent on an investment from Volkswagen that could hit $5 billion, which is playing catch up in the electric vehicle business and giving Rivian buyers some reassurance. Volkswagen is going to begin with an initial investment of $1 billion. The additional $4 billion expected to come by 2026. The word game changer being used a lot.

Oh, look, I think the objection has been you can't buy a car if there won't be a network to fix it after. We see, by the way, how hard it is to fix a Tesla. Well, that's off the table. No one's going to say now, well, wait a second, I can't buy a Rivian. So I think the stock is not up enough. CNBC Mad Money host Jim Cramer with CNBC's Carl Quintanilla. Sixteen Nobel Prize winning economists are warning that a second Trump term would reignite inflation. They've signed an economic risk letter and are warning about the problems with keeping taxes on corporations and the wealthy low or even lower,

imposing universal tariffs on all imports, and pressuring the Federal Reserve to reduce interest rates. One top Republican lawmaker says Trump isn't really settled on anything yet. First of all, I'm not sure the blueprint is finalized. I think he's talking about a number of ideas and sort of field testing some of it. House Speaker Mike Johnson on CNBC. Southwest Airlines shares reacting to word the company's cutting its revenue forecast. Southwest Airlines, those shares are down big. This is America's second biggest passenger airline by market value. It just updated its financial guidance for the quarter. It expects a bigger

drop in a key operating and efficiency metric than previously forecast. That revenue per available seat mile or RASM is now expected to fall by four to four and a half percent compared to a previous guide. But Southwest still expects to set a quarterly record for operating revenues overall during the quarter. Nonetheless, shares down. CNBC's Dominic Chu. Both mortgage rates and weekly mortgage demand stuck. Suggesting a slow summer housing market, much like the spring. Applications for a mortgage to buy a home ticked higher last week, but were down 13 percent from the same week one year ago. The average interest rate on a 30-year fixed home

loan today, 7 percent, according to Mortgage News Daily. Target joining Walmart and Amazon with big sales next month. The Target Circle Week starts July 7th. Walmart's Deals sale starts July 8th and the Amazon Prime Day sale, which is two days, July 16th and 17th. Disney replacing the old Genie Plus ride reservation service at Disney World in Florida starting July 24th. Visitors will use the Lightning Lane multi-pass to pre-book up to three ride times in a day, as long as two weeks ahead of the day you're in the park if you're staying at a Disney hotel. If you're not staying at a Disney hotel, you only get to reserve three days in advance. Disney does charge for this. It's a fee to book rides early on top of

the ticket price to enter the park. 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.