CNBC Business News Update - Market Open: Stocks Start October Trading in the Red, Port Strike Is On, CVS Health Weighs Options 10/1/24

Episode Date: October 1, 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. Wall Street is in the red to start October trading, although a winning September's in the books for the major averages. It was also a winning third quarter for stocks. This morning, the Dow is now down 251 points moments after the open, being led lower by shares of Apple, down 2.5%. The S&P 500 index down 31 points. That's a half percent. The Nasdaq falling 99 points. That's a half percent. October is often volatile for stocks.

You know, when you look back to the seasonal playbook, you would say the drawdown in October, the pickup in volatility is usually there. You go back 20 years. That's what we see, right? But again, that's after a weak September, too. RBC's Amy Silverman on CNBC. And this year, September was not weak at all. Dock workers at U.S. ports from Maine to Texas are on strike this morning after the union

rejected a nearly 50 percent pay increase. The 45,000 workers on picket lines say it's not about pay. It's about AI and automation as more robotic systems are threatening their jobs. The historic strike is the first since the 1970s for these workers, and the impact on global supply chains could be huge. Within a week, it's going to be costly, and it's going to impact those importers that are waiting for the boxes. But it's a manageable crisis. If it lasts two weeks, then it starts getting to be a big

challenge because we'll start to see vessels that are now stuck in ports outside of the U.S. ports. They will make their journey back to Asia, which will push up freight rates. So two to three weeks, it starts to get a really big problem and we will see cost of shipping globally, not just to the U.S. East Coast, but globally start to push up. See intelligence CEO Alan Murphy on CNBC. CVS Health's board has hired advisors to conduct a strategic review of the business. According to people familiar with the matter, an activist investor is pushing the company to create more value for shareholders. The company has lost a third of its value in the past two years. CBS Health has struggled on its health insurance side after buying Aetna, and it is cutting nearly 3,000 jobs. The health insurance industry,

meantime, watching as the future of Obamacare hangs on a few seats in Congress. Republicans have tried to repeal the law, and at stake in the November elections are its enhanced subsidies and better Medicaid coverage for the indigent. Ford's shares popped up this morning on an upgrade by Goldman Sachs. Disney shares ticked lower on a downgrade by Raymond James, which says the theme parks are coming under pressure. Wawa, the Philadelphia-based convenience store chain, is ranked number one in a new American Consumer Satisfaction Index survey. Number two was Quick Trip.

Buc-ee's and Murphy USA tied for third, Casey's General Stores in fifth. Tom Brady has put his watch collection up for sale at Sotheby's. The watches range in value from $12,000 to $800,000 apiece. Former President Jimmy Carter turned 100 years old today, and there was no winner last night for the quarter-billion-dollar Powerball jackpot, sitting at $275 million for tomorrow night. Jessica Ettinger, CNBC. The vote.

It's as American as apple pie. It's iconic. You got the flag up now. The vote. It's as American as apple pie. It's iconic. You got the flag up now. Patriotic. And this November, we're all chanting. It's your turn. Voter up.