CNBC Business News Update - Market Open: Stocks Mixed, The Dow Is Higher Trying to Snap It's Longest Losing Streak Since 1978, Mortgage Rates Higher 12/18/24

Episode Date: December 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. The Dow is riding its longest losing streak since 1978, but it's in the green this morning. Markets are mixed. The Dow is up 75 points. NVIDIA shares bouncing back. They're up more than 3%, and that's leading the Dow higher. The S&P 500 index down 4 points.

The NASDAQ is down 30 points. It is Fed Decision Day. The Fed'sq is down 30 points. It is Fed decision day. The Fed's widely expected to cut interest rates by a quarter percentage point this afternoon and then perhaps announce a pause. The cut should lower the interest you pay on adjustable loans like credit cards. But credit card issuers have been slow to cut their rates as the Fed has cut. I expect a cut. The Fed hasn't dissuaded us of that.

And I think that's very likely. But I do think the tone will change. Powell will, in the press conference and in the statement after the meeting, make the case that the Fed should go much more slowly in its rate cuts going forward. Moody's economist Mark Zandi on CNBC. Investors are so confident in stocks, they're all in. They have a record low allocation in cash right now. Bank of America's fund manager survey shows a new low on cash, and it goes back to at least 2001 when the survey began. Mortgage rates are higher. Mortgage demand fell last week. The

housing market is slow. It's the holidays and higher rates give fewer people a reason to refinance. Today's rate on a 30-year fixed home loan is 6.9 percent. That's according to Mortgage News Daily. Back in September, it was 6.1. Homebuilders, meantime, started building fewer homes overall in November, but there's a split. They started construction on fewer apartment buildings, but a few more single-family homes. Yes, it was a miss on that top line overall number of housing starts, but when you separate out the single-family and the multifamily, that's the story. The driver down on the miss was multifamily and starts down 24% month to month. Single family starts were actually up 6.4% month to month, still down over 10% year over year.

So builders, they're waiting to see what happens after the new administration takes power and what happens with regulation, what happens with mortgage rates. CNBC's Diana Olick. Merck getting into the weight loss drug game, using a licensing deal with a Chinese drug maker to develop a new pill. Traveling north for the holidays, your American dollar will buy you even more in Canada right now. The Canadian dollar hovering at its lowest level against the U.S. dollar since March of 2020. This is the government of Canadian Prime Minister

Justin Trudeau faces a political crisis following the sudden resignation of his finance minister. CNBC's Frank Holland, one U.S. dollar now worth more than $1.41 Canadian. Conversely, it's pretty expensive now for Canadians traveling to the U.S. The college football team that wins the 2024 Pop-Tarts Bowl this year gets a new trophy. GE stepping in with a fully operational toaster as part of the trophy so the team can warm up their Pop-Tarts. The Pop-Tarts Bowl this year, December 28th in Orlando, Iowa State and Miami. Mega millions with no winner last night. Friday night's jackpot is now $825 million. Jessica Ettinger, CNBC. Jim Cramer is the benefit you get that you can't get anywhere else.

He has a unique ability to know the market, explain it to people. It's a great value. Get invested. Join the club today. Go to CNBC.com slash join Jim.