CNBC Business News Update - Market Open: Stocks Lower, US Adds Far More Jobs In May Than Expected, Summer Youth Employment Soars 6/7/24

Episode Date: June 7, 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. It's all good news is bad news on Wall Street today. A strong jobs report for May and markets are lower. Bond yields are higher as investors bet the economy is still too strong for the Fed to cut interest rates. That is pushing stocks down this morning. The Dow down 80 points. The S&P 500 index down 15. The Nasdaq is down 70 points. The U.S. added a load

of new jobs last month. Stronger than expected, 272,000. 272,000. And if we look at the unemployment rate for the first time since January of 22, it hit 4%. CNBC's Rick Santelli. This is a pretty strong report. It's on top of many strong reports that we've seen. Payroll growth obviously came in a bit higher than people expected. The unemployment rate ticked up slightly to 4%. The unemployment rate has still been at or below 4.0% for 30 months in a row.

So it's still quite a strong report here. The Economic Policy Institute's Elise Gould on CNBC. Now, the prospect of the Fed cutting interest rates in the short term is fading. The probability of a rate cut declining because we're just not getting the weakness. CNBC economics reporter Steve Leisman and one investor explains why a great jobs number, more jobs created than expected, is bad news for investors. Investors are going to take off their party hats today for good reason, because there has been two factors that have been driving this rally recently, and that's tech stocks and the view that the economy is getting softer.

Today's number, of course, negates all of that. Expect more volatility. And today, of course, people are not going to like this hot payroll number. Nuveen's Sarah Malik on CNBC. Meantime, if you've seen some negative headlines or suspect news reports about some young people having trouble finding work this summer, don't believe the hype or that clickbait. We've been seeing lots of doom and gloom headlines about how entry-level hiring is plummeting, how there are 75 percent fewer entry-level jobs for new grads. That doesn't really appear to be the case. Zip recruiters Julia Pollack on CNBC. Actually, youth employment has either been the highest or the second highest

each month this year since the Great Recession. So if you have a high schooler or college student or grad hanging around the house saying they can't find anything double check that milwaukee-based retail giant kohl's saying no to sponsoring republican convention events as wisconsin hosts the gop next month it's likely to name donald trump as its nominee the city's host committee chair says most of wisconsin's eight Fortune 500 companies have pledged some support, including Northwestern Mutual Insurance and Fiserv. General Motors is eyeing a secret weapon to sell its new electric vehicles. It's Costco. GM is increasingly using the Costco auto program as EVs go mass market for models like the Chevy Equinox. The NHL is getting the F1 treatment. Amazon has landed a pro hockey docu-series from the producer of the wildly successful

Formula One series Drive to Survive producer, according to The Hollywood Reporter. Today is National Donut Day. Duck Donuts will give you a free cinnamon sugar donut, so will Krispy Kreme. Dunkin' makes you buy a beverage first before you get a free donut. New in theaters, Lionsgate's horror film Ballerina and Sony's Bad Boys Ride or Die.

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.