CNBC Business News Update - Market Open: Stocks Mixed, Netflix Reports Results After the Closing Bell, Ford Expanding Super Duty Truck Production 7/18/24

Episode Date: July 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 and reported by CNBC's Jessica Ettinger.

I'm Jessica Edinger. CNBC Wall Street is mixed. After yesterday's split for the major averages, the NASDAQ had its worst drop since 2022 yesterday in a tech sell-off. The Dow went the other way, opening at a record and above 41,000 this morning for the first time. Now the Dow is down in a pullback 55 points. The S&P 500 index is higher, up 12 points above 5,600. And the NASDAQ is higher. It's up 98 points. That's a half a percent. More people than expected applied for unemployment benefits last week. Initial jobless claims coming in at 243,000.

That's definitely elevated from the 230-ish we were looking for. It follows a slightly revised 223,000. 243,000 equals the first week in June. CNBC's Rick Santelli, the numbers suggest a return to a more normal labor market, and investors are hoping the Fed will cut interest rates as soon as September as that job market returns to a normal balance. One former Fed governor is on board. For the last year or so, the markets have sometimes been ahead of the Fed. I think right now there's a much better alignment. As I listen to the Fed speak, including importantly Chair Powell, they're clearly talking about the dual mandate. They're clearly signaling an increase in confidence.

So I, too, believe that a September cut right now seems like the more likely outcome. Former TIAA CEO and Fed member Roger Ferguson on CNBC. Netflix reports quarterly results after the closing bell today. One expert says the company will likely beat estimates for the number of subscribers they added in the quarter. I think they'll probably overperform the consensus of four and a half million. I would expect them to do better than that. They're getting into sports pro live sports now because nothing like sports to drive viewership. I think a big number in growth on the advertising tier would certainly send things going. Orbit Gaming's and Newsweek's editor-at-large Tom Rogers on CNBC. Ford investing $3 billion to expand large Super Duty truck production to a plant in Ontario, Canada

that was previously slated for electric vehicles. The plant will come online in 2026 as more people want those big trucks. Darden Restaurants buying Chewy's Tex-Mex restaurant chain for about $600 million. Darden owns Olive Garden, Longhorn Steakhouse, and Ruth's Chris. United Airlines reported a profit jump of 23% in the last quarter, but the forecast for this current quarter was disappointing. The industry's dealing with overcapacity now. Volvo Cars shares jumped 7% on a record core operating profit in the quarter. British Open Golf is on at Royal Troon in Scotland.

The winner takes home $3 million. Jessica Ettinger, CNBC. This isn't just the Open. It's golf as it's meant to be. The Open Championship on NBC and Peacock. Part of the greatest summer of golf. Jessica Ettinger, CNBC. This isn't just the Open. It's golf as it's meant to be. The Open Championship on NBC and Peacock. Part of the greatest summer of golf.