CNBC Business News Update - Market Open: Stocks Mixed, Russell 2K Up 12% in 5 Days, Chip Stocks Lower, Roche Higher On Weight Loss Pill Test 7/17/24

Episode Date: July 17, 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. A pullback from record highs on Wall Street this morning. After the rate cut rally sent the Dow up 700 points yesterday, investors have been profit taking and dumping tech winners like NVIDIA, although the AI chipmaker is still up 150% so far this year. The numbers, the Dow is in the green, up 28 points. The S&P 500 index down 53 points, just about 1%. And the Nasdaq is down 300 points, 1.5%. The Russell 2000 index of small stocks has soared. And CNBC's experts have been questioning that.

For the Russell, 12% in five days. It's a little unnerving because the stocks that are leading it tend to be stocks that have no earnings. They're small. They're all up 50% or more. I mean, you look at the top 10. Prelude Therapeutics, Civic Bio, Aurora Innovation, Caribou. I know, that used to be a coffee company. Lantheus, we know that's real.

Cypher Mining, Method Electronics, Solaris Oilfield, IGN. That's the leaders of this. So should we just go all in in this index that everyone says is the place to be? CNBC Mad Money host Jim Cramer with CNBC's Carl Quintanilla. Drug maker Roche shares were higher after some good results from an experimental weight loss pill. Shares of the drug makers behind Ozempic, Wagovi and other injectable drugs, Novo Nordisk and Eli Lilly, those shares were sliding. Early results in the trial of its CT966 drug to treat obesity were positive. The Swiss drug maker said the median weight loss in patients without type 2 diabetes

was just over 6% within four weeks, adding that the drug was well tolerated. CNBC's Aramila Comentan. Taiwan semi and chip stocks as a group were lower today amid reports of tighter export restrictions coming from the U.S. and a ramping up of geopolitical tensions. Presidential hopeful Donald Trump also told Bloomberg he thinks Taiwan, the country, should pay the U.S. for defending it. Home builders started construction on more apartment buildings last month and fewer single-family homes. Multifamily was really the driver in this month.

It was up 22% month-to-month. That's a big jump month-to-month. Still down, though, 23% year-over-year, and that's because record supply came onto the market both last year and this year. And we are seeing a softening in multifamily rents. They're actually down year over year and have been for the last several months. Single family starts, though, were actually down month to month. We did see the average on the 30-year fixed well over 7 percent for all of June. And so that has builders seeing their buyers come

in and pulling back a little bit about those decisions. CNBC's Diana Olick, infamy baby formula maker, Wreck-It may take a sales hit because a tornado damaged its warehouse in Indiana. Spirit Airlines shares are struggling. It's been offering passengers bundles of things it used to charge a la carte for, like for checking a bag or for a seat assignment. Spirit Airlines shares falling just about 6.5%. The carrier said it will post a wider-than-expected loss for the last quarter due to revenue that came in below expectations. Spirit shared that non-ticket revenues came in several dollars lower than anticipated per passenger.

CNBC's Dominic Chu. Discount retailer Five Below shares plunged more than 15 percent. The company slashed its second quarter outlook and announced its CEO is leaving. The Mirage closes in Las Vegas after 30 years. Today, a hard rock guitar tower is on the way. 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.