CNBC Business News Update - Market Open: Stocks Rally On Fed Rate Cut, Darden Restaurants Struggles, Delta Airlines Credits Taylor Swift 9/19/24

Episode Date: September 19, 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 Edinger. CNBC stocks rallying out of the gate on Wall Street. The Dow popping higher 573 points, 1.3%. It's above 42,000 this morning. The S&P 500 index up 90 points. That's one and a half percent. The Nasdaq is up 400 points, two and a quarter percent. The Dow, by the way, being led higher by Goldman Sachs shares, which are up almost three percent this morning. This after the Fed announced a half percentage point interest rate cut. With more on the way, lower rates, that means cheaper borrowing for both businesses and consumers. It was the first cut by the U.S. Central Bank in four years as inflation is down and the Fed wants to keep the labor market in a good spot. I think we saw yesterday the Fed pivoting pretty obviously towards a more future oriented approach to monetary policy. Over the past couple of years, they've been very data dependent, but the data is basically the data that's already come in. And that's what they've been looking at and emphasizing. Now, as Chair Powell said yesterday,

they're trying to look forward and to avoid a slowing labor market turning into a deteriorating labor market. Harvard Law's Daniel Tarullo on CNBC. Meantime, today's data shows labor markets in a good spot. Fewer people applied for unemployment benefits last week. Their lowest level in four months. The job market remains solid. Initial jobless claims, 219,000. Much less than we were expecting. 219,000 would be the smallest month-over-month initial jobless claim since the third week of May.

CNBC's Rick Santelli. Darden Restaurants is out with disappointing quarterly results today as Olive Garden and some of its fine dining restaurant sales struggled. Trump Media shares were sliding to their lowest since the merger last night. As the lockup expires today and some investors worry that President Trump will sell his shares, he has said he will not. Trump media shares this morning down four and a half percent at $14.90 a share. United Airlines says it's definitely getting a lift from Taylor Swift and the Heiress Tour. Count United Airlines is another big beneficiary of Taylor

Swift's globe-hopping music tour. United's chief commercial officer telling a travel industry forum in New York that the airline sees at least a 25% bump in demand on its flights during the singer's weekend concerts, with things reverting to normal afterwards. CNBC's Becky Quick. Kohl's is holding a national hiring event today and tomorrow, trying to staff up for the holidays like lots of retailers. One in five U.S. shoppers plans to reduce their holiday spending this year. Research firm Gartner says a third of shoppers will start buying

before November, according to Retail Dive. Jessica Ettinger, CNBC. This is the best solution I have ever seen. I want to be in it to win it with you. Shark Tank, tonight starting 7 Eastern, CNBC.