CNBC Business News Update - Market Open: Stocks Mixed, Trump's Truth Social Gets Into Banking, Frontier Eyes Spirit Merger Again 1/29/25

Episode Date: January 29, 2025

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. Stocks are mixed as investors wait to see what the Fed does about interest rates. A decision on rates will come later on this afternoon. The Dow is up 20 points out of the gate this morning. The S&P 500 index down 13 points. The Nasdaq is down 78 points. That's almost a half percent. Nvidia shares are down more than 2% this morning. The U.S. Navy banned the Chinese artificial intelligence model DeepSeek from all phones and computers, calling it a security risk. Trump media shares are surging today. It's getting into banking with a new fintech division. That's financial technology. Trump media owns Truth Social, and the banking division will be called TruthFi. TruthFi, the company planning to invest up to $250 million through Charles Schwab

and be allocated to customize separate managed accounts, ETFs, crypto assets, and more. Charles Schwab will also broadly advise on Truthfy's investments and strategies. CNBC's Andrew Ross Sorkin, the president, owns 57 percent of Trump media, according to the Associated Press. Starbucks reported better than expected quarterly results after the closing bell last night. Shares were higher. Same-store sales, though, dropped. For the fourth quarter in a row, it is a slow turnaround. Bring back the idea of a coffeehouse vibe. Hopefully you saw that with the condiment bar coming back. You know, when you stay in our stores now, you're getting a ceramic mug, some free refills. We got to win the morning,

and you're starting to see us do that. We're starting to see progress as it relates to our partners being in position, being supported correctly, small steps forward. But I love the fact that we're going forward. That's Starbucks CEO Brian Nicol on CNBC. And those free refills may be worth even more. Coffee futures have hit another record high today as the world's seventh biggest coffee grower, which is India, is forecast to have lower production this year. Google reclassified the United States as a sensitive country, just like China or Russia, a designation it reserves for states with strict governments and border disputes. Frontier Airlines wants to try again to merge with Spirit. Frontier Airlines is making another

attempt at a deal for rival discount airline Spirit, which is currently in bankruptcy. The two carriers were planning to merge in 2022, but JetBlue made a higher offer for Spirit. That deal fell apart last year under legal scrutiny. CNBC's Mike Santoli. Meantime, Boom Supersonic broke the sound barrier yesterday with a test flight of a private aircraft, the first ever to do so. Morning Brew says the XB-1 aircraft cleared Mach 1 as it flew over the Mojave Desert. The speed of sound is 761 miles an hour. The test is a step on the path of developing a new supersonic commercial jet called Overture. United Airlines and American have each already pre-ordered those.

Fox sold Super Bowl ads for as much as a record $8 million for a 30-second commercial this year. The game on February 9th is sold out in terms of commercial time. AI and pharmaceutical companies took a bigger share of commercials this year. Jessica Ettinger, CNBC. Earnings season, the quarterly numbers as they break. The scorecard for the American economy. Earnings season on CNBC.