CNBC Business News Update - Market Open: Stocks Mixed, S&P 500 Index Tops 5500 For the First Time, Weekly Mortgage Demand Softens 6/20/24

Episode Date: June 20, 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. The S&P 500 index and the Nasdaq each opened this morning at fresh record highs after yesterday's Juneteenth market holiday. Stocks are mixed on Wall Street out of the gate. The Dow in the red down 31 points. The S&P 500 index building on that record high. It opened with up six points. Same for the Nasdaq, up 31 points.

NVIDIA shares up three percent this morning extending gains from Tuesday when it surpassed Microsoft to become the world's most valuable public company. Three trillion dollars is real money no matter how you slice it three plus trillion and multiple things can be true at once I think it can be mostly fundamentally based it can be mostly following earnings momentum it can be about this story that's, you know, obviously getting to the bottom line of NVIDIA faster than anywhere else. And it could also be about pure momentum and an overshoot and a complete kind of blow off type action. So no way to know where one stops and the other begins. CNBC's Mike Santoli.

Fewer people than expected applied for unemployment benefits last week, but the number was more than the pre-pandemic weekly average. Initial jobless claims, 238,000. That's from a slightly revised 243,000. We'll call it down 5,000, shall we? CNBC's Rick Santelli. The homebuilders started the fewest single-family homes last month since June of 2020, fewer than expected. Why wouldn't they build more homes if the U.S. is dramatically undersupplied?

CNBC's Diana Olick knows. It was a big surprise to the downsides, but frankly, I'm not sure why the estimates were as high as they were. Mortgage rates really shot up dramatically in April, and in May, they came back a little bit, but not a lot. Still over 7% on the 30-year fix. The builders do have a lot more supply that they need to unload. And you're seeing a lot more supply coming onto the existing home market. We're still low. I'm not saying we're not lean. But with more supply in existing home and the builders having more supply, it shouldn't be surprising that we're seeing this drop. Mortgage demand flattened last week, even when mortgage rates hit their lowest level since March at 6.94 percent. Mortgage applications to buy a home 12 percent lower than the same week

a year ago. On a 30-year fixed home loan today at 7 percent. Accenture shares were jumping even though it missed earnings and revenue expectations in its latest quarter. The information technology company posted nearly a billion dollars in new generative AI bookings. AT&T raising prices for customers who were on the old unlimited data plans that have been retired. Starting in August, people with single line plans at AT&T are going to pay $10 more. People with multiple lines, $20 more. AT&T's current unlimited plans range from $66 to $86 a month for a single line. Disney Pixar's Inside Out 2 set a Juneteenth box office record with a projected nearly $30 million in ticket sales yesterday.

It is the longest day of the year. Summer arrives this afternoon. Kroger, the biggest pure grocery store chain in the U.S., will hand out pints of ice cream, sort of. Customers can sign up for a voucher at FreeKrogerIceCream.com. The giveaway is restricted in some states and at some of the chains that Kroger owns. Jessica Ettinger, CNBC.

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