CNBC Business News Update - Market Open: Stocks Lower, US Eyes Possible Soverign Wealth Fund, Keurig Dr Pepper Buying JDE Peets Coffee 8/25/25

Episode Date: August 25, 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 Edinger, CNBC, Wall Street. In the red, the Dow pulling back from the record high it opened with. It's down 81 points being led lower by shares of NVIDIA, which are down about a half percent this morning. The S&P 500 index is down 14 points. The NASDAQ pulling back by 67 points. That's a third of a percent. The NVIDIA pullback this morning ahead of its earnings results, which come after the close. closing bell on Wednesday, and that's the focus of many investors today. Intel, now co-owned by the U.S. government, the Trump administration took a 10% stake in the struggling chipmaker. Here's the National Economic Council of the U.S. Director Kevin Hassett with CNBC's Andrew Ross Sorkin. We have been exporting the idea of a free market around the world for as long as I can remember,

and this is a major shift. Do you not agree? No, I think this is a very special. case of, you know, President Trump and Howard Lutnik weren't very clear that they wanted to continue to let the money go out because their hurdles were being crossed. This is a very, very special circumstance because of the massive amount of Chips Act spending that was coming in Tellsway. But the president has made it clear all the way back to the campaign that he thinks that in the end, it would be great if the U.S. could start to build up a sovereign wealth fund. And so I'm sure that at some point there'll be more transactions, if not in this industry at other industries.

Cambridge economist Mohamed El Larian had this to say to CNBC. The only thing I like about this intel transaction is a message to the private sector. There is no free lunch. If you're going to take money from the government, don't think it comes free. However, I worry about two things. I worry about this spreading and I worry about the lack of respect in this critical difference between ownership and control. Ownership is fine.

Starting to impact business decision is really problematic. And I just would be very nervous if suddenly we go into a world in which the government starts impacting lots of business decisions. Corrig, Dr. Pepper, buying Dutch coffee company J.D.E. Peets. It's an $18 billion deal, and it's going to result in two separate companies. Kyrig says the Merch Company plans to separate its coffee and other beverage units. And the two companies will be listed in the United States and led by Kureig's current CFO and CEO, respectively, according to a press release from Curig, the deal is expected to create the world's largest pure play coffee company and results in about $400 million worth of cost energies over three years. Curig, Dr. Pepper, was created in 2018 through the merger of Curig Green Mountain and Dr. Pepper Snapple.

CNBC's Leslie Picker, meantime coffee, the commodity? Prices there have hit their highest since mid-May. Canada dropped some of its retaliatory tariffs on U.S. goods going north, hoping to spur a trade deal. American farmers in particular are paying much more for their fertilizer, which mostly comes from Canada. Netflix likely won the weekend box office with its K-pop Demon Hunters movie, but since it doesn't release numbers, Warner Bros. Horror Film Weapons will be listed as the number one movie over the weekend in the official record book. Sony's a bit of a winner, too, because it produced K-pop Demon Hunters for Netflix. Darden restaurants owned Olive Garden, bringing back the

never-ending pasta bowl today for the same price it was three years ago, 1399. Jessica Eddinger, CNBC. The club is really about empowerment. What I like about Jim is he makes it easy for someone like me to understand how to invest my money properly. Who we got, Jim? Get invested. Join the club today. Go to CNBC.com slash join Jim.