CNBC Business News Update - Market Open: Stocks Mixed, Investors Wait For Fed Interest Rate Cut Announcement At 2p ET, Mortgage Applications Surged Last Week 9/18/24

Episode Date: September 18, 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 Ettinger, CNBC. Major averages mixed out of the gate ahead of what's expected to be the Federal Reserve's first interest rate cut in about four years. Both the S&P 500 index and the Dow touched all-time highs intraday yesterday. The Dow down 45 points. The S&P 500 index is down a point. The Nasdaq's in the green, up six points this morning. It is Fed decision day,

the second day of a two-day meeting on interest rates is here. And after successfully bringing inflation down with interest rate increases to slow the economy, a cut could be announced at 2 Eastern. The market has been rallying. An economy that's fundamentally very strong. This slowing has been desired because it means the labor market is getting back into balance. So the real question is not whether or not the slowing is desired. The question is, you know, for the future, you know, what do they have to do to try to make sure the slowing doesn't get out of hand and to keep it balanced so that they achieve that thing that we call the soft landing. And that's really what the discussion is going to be about today.

Former Federal Reserve Vice Chair Roger Ferguson on CNBC. Many investors think a quarter percentage point cut is coming today. That would be 25 basis points. At this point in time, the Fed will get started with 25 and then look for some additional perhaps rate cuts later on in the year. Piper Sandler's Craig Johnson on CNBC. When interest rates come down, it gets less expensive to borrow money. It's good for business and for consumers. Mortgage rates hit a two-year low and mortgage applications surged 14 percent

last week. The average rate on a 30-year fixed home loan this morning is 6.1 percent, according to Mortgage News Daily. Housing starts in August were better than expected as the home builders get busy. They hit 1.36 million. That was the highest since April. Kamala Harris is seen as the most likely winner in the November presidential election, according to the new CNBC Fed survey of top U.S. economists and fund managers. Harris leads the race 48 percent to Donald Trump's 41 percent. It's a big shift from the July survey, which found a Trump victory more likely. Boeing and its largest union, along with federal mediators, are picking up contract talks today as more than 30,000 workers are on picket lines for day six today. After failing to agree on key issues of wages

and pensions yesterday, the International Association of Machinists and Aerospace Workers has been on strike since Friday and is pushing for a 40 percent raise over four years. That is well above Boeing's rejected 25 percent offer. CNBC's Silvana Hanau. Tupperware has filed for Chapter 11 bankruptcy as the plastic containers have lost their popularity. McDonald's selling double cheeseburgers for 50 cents today only. You have to order through the app. Wendy's is selling junior bacon cheeseburgers today for one cent. You do have to make an additional purchase to mark this National Cheeseburger Day. The Wendy's deal runs through the weekend. Jessica Ettinger, CNBC. The next crucial Fed decision. What the current economic data is signaling. Will rates finally

get cut? And by how much? Fed Chair Powell's remarks and message to investors. Power Lunch, 2 Eastern, CNBC.