CNBC Business News Update - Markets Midday: Stock Slump Wipes Out Week's Gains, Apple Still Short of $4 Trillion, Another Exec Joins Activist Effort At Lamb Weston

Episode Date: December 27, 2024

The latest in business, financial, and market news and how it impacts your money, reported by CNBC's Peter Schacknow

I'm Peter Schach, now CNBC. The so-called Santa Claus rally is nowhere in sight, with the markets slumping on the final trading day of the week. The Dow now down 502 points at 42,823, the S&P 500 with a 1.6% tumble, or 94 points, and the Nasdaq 2.1% lower, or 429 points. The averages have lost nearly all of their gains for the week. Zacks portfolio manager Brian Mulberry says investors can expect gains of 8 to 10% for 2025, or as he puts it, normal is what I would say. It feels abnormal since we've had a two-year run in

the S&P up almost 50%. People kind of get lulled into this false sense of security. Where's my 25% return year over year? All we simply see in 2025 is a restoration to normal. That also brings with it more threat of volatility as well. The one thing we didn't have this year really was a lot of downward volatility. Apple is down about 2% today and is about $11 a share short of achieving a total $4 trillion valuation. Clio Capital Managing Director Sarah Kuntz says Apple may or may not get there, but says the stock is overvalued regardless. I think what you're seeing is Apple is getting rewarded for the fact that the market is pretty frothy, and that doesn't mean there's anything wrong with Apple. It just means that maybe things

aren't as right as the stock price indicates. Lam Weston is leading the S&P 500 today with a 3% gain as a former executive of the French fry maker becomes the latest to join an effort to institute changes at the company. That effort is being organized by activist investor Jana Partners. Shares of Bristol-Myers are bucking the overall market trend just below break even in today's down market. That comes after the FDA approved an injectable version of the company's best-selling cancer drug, Abdevo.

Peter Schach now, CNBC. Overtime's about understanding what just happened in the markets that day and preparing for tomorrow. I'm looking to talk to all investors, sophisticated investors, beginning investors. I'm always learning. Closing bell overtime for Eastern CNBC.