CNBC Business News Update - Market Open: Stocks Mixed, China Says Trade Talks With The US Have Not Started, Airlines Pull Guidance On Weaker Demand 4/24/25

Episode Date: April 24, 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 is mixed out of the gate this morning. Investors are waiting for progress on trade deals while China says tariff talks with the U.S. have not even started. The Dow down 122 points being led lower by shares of IBM, which are down 8 percent this morning. The S&P 500 index with its head above water, it's up nine points. The Nasdaq up 100 points, a half percent. Nvidia shares up 1 percent. Uncertainty in tariffs impacting U.S. consumers.

Businesses are already passing tariff costs onto customers. The new Fed Beige Book report shows businesses have been notified by suppliers that tariff costs are being added and surcharges are hitting consumers already from retailers that are China-based, like Taimu and Xi'an, as well as in the food, construction, and insurance industries. The same report notes that the New York City hotel industry is reporting a drop in bookings

from Canadian business and leisure travelers. The pause is real. As businesses are worried about the tariffs, the new Cleveland Fed president joined CNBC today. One of my favorite parts of the job of being Cleveland Fed president is going out in the district and talking to companies, talking to businesses and understanding how they're thinking about things. What we're hearing right now is that the uncertainty is really weighing on businesses,

and it's creating issues for them in terms of planning. Some of them have put pauses on whether they're going to invest in new facilities, new capital plans, and then they're thinking about their hiring plans. How many people are they gonna be able to keep on for what length of time? Cleveland Fed President, Beth Hammack on CNBC. American Airlines has now withdrawn

its full year revenue forecast on a murky economic outlook. Delta and Southwest have already pulled theirs. Uncertainty is the word of the day. We came off a strong fourth quarter, saw, you know, decent business in January and really domestic leisure travel fell off considerably as we went into February. It really was in domestic leisure travel and that's persisted as we've moved into April and look, the uncertainty is the reason behind pulling our guide. American Airlines CEO Robert Isom on CNBC, disappointing outlooks from two other airlines. Southwest Airlines says that it will reduce its capacity in the second half of the year as more signs point to weaker domestic bookings in 2025. And reporting better than expected first quarter results, the airline said that it expects second quarter unit revenue to be flat down by as much as 4% compared to last year.

Southwest said that it is not affirming its earnings guidance for this year or for next year. In the meantime, Alaska Airlines posted mixed results and said that it would not update its full year guidance either. It's citing the economic uncertainty and volatility. These are leading economic indicators. Airlines tend to pick up on these things rather quickly with bookings and what they can see.

CNBC's Becky Quick. Procter and Gamble says price increases are likely and consumer spending pullbacks. P&G makes Tide detergent, Gillette razors, Bounty paper towels, and Crest toothpaste to name a few of its brands. Consumers have been subjected to an incredible amount of uncertainty.

Immigration status, employment status, tariff prices, inflation, interest rates, social and political divisiveness, significant economic strains, which are creating a crisis in consumer confidence. Against that backdrop, though, we grew organic sales, albeit modestly. China's our second largest market in both sales and profits so it's very important to reflect the impact of tariffs as we currently understand it. We've reduced our fiscal year guidance. That's Procter & Gamble CEO John Mueller on CNBC. Pepsi with a rare mist for the quarter. It owns Frito-Lay. It's cutting its full year forecast because of the tariffs.

Jessica Edinger, CNBC.