CNBC Business News Update - Market Open: Stocks Mixed, US Added Solid 206k Jobs in June, Hurricane Beryl Impacts Top Mexican Tourist Areas 7/5/24

Episode Date: July 5, 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 solid June jobs report. Wall Street mixed this morning after the S&P 500 index. And the Nasdaq each opened at fresh record highs from Wednesday. It's a light trading day for this dangling Friday between the holiday and the weekend. The Dow is down 24 points this morning. The S&P 500 index is up six points. The NASDAQ up 63 points.

The major averages are heading for a winning week. The U.S. added more jobs in June than expected, 206,000, a sign of continued economic strength. The unemployment rate ticked higher, up to a still low 4.1%. 74% of the jobs came from government and health care and education. It's not the federal government. A lot of it is local government jobs. They seem to be still hiring in those municipalities. The hospital's up 22,000. So that's where a lot of the job growth is coming from. Leisure and hospitality, which have been a big source of

job growth, just 7,000. CNBC senior economics reporter Steve Leisman. And the data show that overall, though, the U.S. economy is slowing. Across the board, jobs, initial claims are up, jolts were weak, ADP weak. So nonfarm payrolls today with the revisions, I thought was very soft. Not a surprise based on all the other data points that I just mentioned. But we're seeing a slowdown in the economy and that's helping inflation. But we better not slow anymore because then we're going to be we're going to be in real problem territory. Hightower's Stephanie Link on CNBC.

Hurricane Beryl made landfall in one of Mexico's top tourist areas as a Category 2 storm. The Cancun airport was shut down for a period because of 110 mile-an-hour winds with Cancun and Cozumel under weather alerts. Cruise lines have adjusted their itineraries. Mexico's major oil platforms are mostly in the southern Gulf of Mexico. They're not expected to be impacted, but oil platforms in U.S. waters to the north may be affected if the hurricane continues on its expected path. A new study finding that people taking Ozempic and Wegovy may be at higher risk of developing an eye condition that results in permanent vision loss. This was a well-done study by a these drugs and a higher incidence of this really devastating side effect where you get ischemia to the optic nerve and it could cause temporary or permanent blindness and they did find an increased incidence of the condition in patients who were prescribed the drug either for diabetes or obesity. That doesn't establish a causal relationship. They're going to need to do better studies now going forward and I think this is going to trigger further

investigations. Former FDA Commissioner Dr. Scott Gottlieb tells CNBC more testing is happening. The parent company of Saks Fifth Avenue will buy luxury department store chain Neiman Marcus and Bergdorf Goodman for more than two and a half billion dollars. The deal includes some very highly valued real estate. Universal's Despicable Me 4 opened Wednesday night ahead of the holiday. It's poised for a massive $120 million holiday weekend box office take. Universal is a sister company to CNBC, while Disney Pixar's Inside Out 2 crossed the half billion dollar mark in the U.S., according to The Hollywood Reporter.

Jessica Ettinger, CNBC. When you're at your very top speed, it feels like you can run forever. And then there's this one moment where everybody else starts to die, and you're like, I'm not about to die. I'm about to get faster.