CNBC Business News Update - Market Open: Stocks Lower, Salesforce Disappoints, Footlocker Shares Surge 5/30/24

Episode Date: May 30, 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, Wall Street. Extending yesterday's sell-off for stocks today, the rally taking a breather on disappointing quarterly results from Salesforce. The Dow down 320 points, eight-tenths of a percent. The S&P 500 index down 14 points, that's a third of a percent. The Nasdaq is down 40 points. That's a quarter percent. I think this is an oversold knee-jerk reaction on Salesforce. But I see this more as a speed bump versus hitting a wall.

So this is also a very common tail end of earnings season as we focus more and more on macro and economic. And we have less large companies and catalysts. You do sometimes face some of this selling pressure. G-squared's Victoria Green on CNBC. Bond yields were cooling after the GDP number revised for the selling pressure. G Squared's Victoria Green on CNBC. Bond yields were cooling after the GDP number revised for the first quarter. U.S. economic growth came in at its lightest in two years. Second time around the block on the first quarter numbers, expected to be up 1.3, and it is up exactly 1.3. Comps to the second quarter of 22 last time we were at these levels of GDP activity.

CNBC's Rick Santelli. And inside the GDP report today, an inflation surprise. The little bit of inflation improvement incrementally better than it was. Nice to see a downside surprise in that number. CNBC senior economics reporter Steve Leisman. Investors are waiting for a bigger inflation report coming tomorrow morning with the PCE, personal consumption expenditures data. Salesforce is impacting the market, though it reported its first quarterly sales miss in 18 years, spooking investors. Shares of the cloud software giant tumbling more than 15 percent in early trading. Just said, look, we don't have the demand.

I mean, I'm waiting for an executive who comes along and says, look, we thought we budget for X demand. We don't have that much demand. And the reason why we don't have that much demand is because people are reconsidering whether they need our product. CNBC Mad Money host Jim Cramer, whose interview with Salesforce CEO Mark Benioff, is on CNBC.com. Kohl's shares were tanking on disappointing quarterly results. Footlocker stocks surging. The turnaround there showing some signs of life. U.S. crude oil down more than 3% for the month so far.

The worst performance for oil of the year, but it's good news for drivers as prices at the pump keep ticking down. Cruise lines, the latest industry to turn to discounting after retailers like Target and Walmart said they're lowering prices. Joining Wendy's and McDonald's offering lower price value items next month. It's all about the consumer. Tesla facing another investigation about issues with Tesla vehicles. U.S. safety regulators seeking records from Tesla as part of an investigation into

reports of power steering loss in Model 3 and Model Y vehicles. The National Highway Traffic Safety Administration says it wants the information from Tesla by July 24th and the probe covers about 334,000 vehicles and comes after the agency received more than 100 reports about the loss of steering control. CNBC's Silvana Hanau. Tomorrow night's Mega Millions jackpot, now more than a half billion at $522 million. Jessica Ettinger, CNBC. I just love this game. So excited to share with the world. The Olympics from Paris starts July 26th on NBC and Peacock.