CNBC Business News Update - Market Open: Stocks Rally For A Second Day, Disney's Combined Streaming Services Finally Profitable, AirBNB Sees Slowing US Demand 8/7/24

Episode Date: August 7, 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 Ettinger, CNBC. Stocks rally for a second day on Wall Street as markets work to make back some of those losses from Monday's carry trade plunge, forced selling that was related to Japanese currency issues. We've got the Dow up 268 points this morning. The S&P 500 index up 67 points. That's more than 1%. The NASDAQ up 288 points. That's almost 2%. Disney shares were down even after better than expected quarterly results as investors worry about a slowdown with consumers pulling back at Disney World and other theme parks. Disney will crack down on password sharing for its streaming services next month. And then in October, it's raising prices on those streamers, ESPN+, Hulu, and Disney+. And the streamers turned a profit in the quarter.

And with Hulu and Disney+, the company's CFO says they can raise prices no problem. People tend to focus on price. But remember, value is what the consumer receives. Price is what the consumer receives. Price is what the consumer pays. We had the three biggest films, the biggest film in May, biggest film in June, and biggest film in July in total. And the value that we're putting into the streaming service with RIP right now, with Inside Out 2 coming and with all the great TV shows like The Bear and Abbott Elementary and Shogun, we feel like we're earning pricing. And as a result, we can take that pricing.

Disney's chief financial officer, Hugh Johnston on CNBC. Refi mortgage demand popped last week as rates come down. Applications to refinance a mortgage jumped almost 60% over the same week last year. Buyers, not so much. Applications to buy a home were still down 11 percent last week from a year ago. The average rate on a 30-year home loan today, about six and a half percent, according to Mortgage News Daily, the lowest in more than a year. Record high home prices, though, are part of the reason people just aren't buying. The U.K.'s Secretary of Science, Innovation and

Technology slammed Twitter, now ex-owner Elon Musk, for not controlling misinformation on his platform. The secretary told the Times newspaper that Musk is one person who is accountable to no one. U.K. officials have also warned TikTok, Facebook, Google that it's their responsibility to tackle misinformation online. Airbnb shares were tanking today on weaker than expected revenue forecasts for this current quarter. Airbnb company reported earnings that missed expectations, warned that it's seeing signs of slowing demand from U.S. customers. The company said it expected moderation in year-over-year growth in its key nights and experiences category. It also cautioned that it was seen shorter booking lead times. CNBC's Joe Kernan, Airbnb and its rival Vrbo

can be subject to fraud, and that's reported frequently on sites like Reddit, which may be scaring some would-be travelers away. Reddit shares, meantime, were higher on a strong quarter. It's also adding more users who are moving from other platforms like X, the former Twitter. CVS Health cut its full-year profit outlook, blaming higher medical costs. Its shares were down slightly. Novo Nordisk shares were down on weaker-than-expected results in the quarter, as Lilly's Diabetes and Weight Loss Drugs, Manjaro, and Zepbound cut into Ozempic and Wagovi sales. Kelanova is doing a Pop-Tarts drop today, selling the world's biggest Pop-Tarts in three cities, 15 per city, New York, LA, and Chicago, online only today at 1 p.m. Eastern. For $60, you can personalize this monster Pop-Tart with your own

frosting phrase. It's going to be delivered in a three-foot-tall box that looks like a regular Pop-Tart box. Jessica Ettinger, CNBC. I just love this game. So excited to share with the world. The Olympics from Paris on NBC and Peacock.