CNBC Business News Update - Market Open: Stocks Mixed, Boeing Machinists Reject Contract Offer, Southwest CEO Keeps His Job 10/24/24

Episode Date: October 24, 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 by CNBC's Jessica Ettinger.

I'm Jessica Edinger, CNBC. Markets are mixed this morning on Wall Street. The Dow down 133 points. That's a third of a percent. It's being dragged lower by shares of IBM. Disappointing earnings there. Shares are down almost 7%. Honeywell shares also dragging the Dow lower down 4%. Verizon down almost 2%. The S&P 500 index is in the green. It's up 13 points. The Nasdaq also higher, up 97 points. That's a half percent. Striking Boeing workers have voted no on the company's latest contract offer, and they're still on picket lines today. This was an overwhelming rejection. Basically two-thirds of the machinists who voted, they said no. Late last night, this is what the president of the machinist union had to say about the vote. This wasn't enough for our members, especially when it's been 16 years since we've had a chance to bargain every area of our contract. And trying to make all that up in one is very hard to do, but our members deserve more.

They've spoken loudly. This is a costly strike. It's estimated to be costing Boeing at least $1 billion per month. Clearly, they're going to have to go back to the negotiating table. CNBC's Phil LeBeau. For airlines that need to replace old jets and or need to increase the number of seats they're offering, they're just looking at Airbus and other plane makers right now. Here's the CEO of American Airlines today on CNBC. For Boeing, it's just, I look forward to they when they're not just a distraction. We've been struggling with them for, you know, over the last five years. As we take a look forward, we're going to make sure that we're protected. I'm quite confident that our deliveries next year, no matter Boeing coming in or not, that we can meet the capacity guides that we have.

We don't depend a lot on the Boeing deliveries. American Airlines CEO Robert Isom on CNBC. Southwest Airlines CEO Bob Jordan will keep his job after the company and an activist investor have reached a deal to put new directors on the airline's board. Jordan is making moves to increase revenue at Southwest, including getting rid of open seating next year and charging more for certain seats on each plane. IBM reported disappointing quarterly results last night after the closing bell. Its shares were lower. Tesla out with stronger than expected third quarter results.

CEO Elon Musk was bullish on the earnings call last night. The profit beat came as Tesla benefits from environmental credits, not necessarily selling more cars at profit. The number of Americans who applied for unemployment benefits last week fell again, coming in well below expectations as the job market remains resilient. I'm not seeing the effects of this hurricane in the jobless claims. I think we expected them to be up. It was because of that. There's a little pop, 4,000 in Florida. I don't see it in North Carolina. I don't know if the hurricane effect has passed through, is yet to come, but it seems to be gone. Very interesting

as to whether or not and how much it shows up in the jobs numbers when we get them in November. CNBC's Steve Leisman. But the number of people still collecting checks over a period of time, it's called continuing claims. It hit its highest level in almost three years, getting back to normal, suggesting it's taking people out of work a little longer to find that next job. Halloween is one week from tonight. Multi-billion dollar industry. Jessica Ettinger, CNBC. The vote. It's as American as apple pie. It's iconic. You got the flag up now. Patriotic. And this November, we're all chanting, it's your turn. Voter up.