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Tag: consumer prices

  • In his national address, President Trump claimed he’s bringing prices down. Here’s what the data shows.

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    After nearly two months without new consumer price data, the Bureau of Labor Statistics released its latest report Thursday, providing a glimpse at energy costs, food prices and other everyday expenses.

    According to the consumer price index, inflation slowed in November, with prices rising 0.2% over the 0.3% observed in September. (BLS could not collect October data because of the government shutdown.)

    Still, inflation remains stubbornly high. Compared with a year ago, consumer costs are up about 2.7%.

    Thursday’s report came just a day after President Donald Trump delivered a prime-time address from the White House in which he largely discussed affordability concerns, from housing costs to grocery prices, saying the U.S. is “poised for an economic boom.”

    “The last administration and their allies in Congress looted our treasury for trillions of dollars, driving up prices and everything at levels never seen before. I am bringing those high prices down and bringing them down very fast.”

    In truth, of the 11 everyday costs tracked month to month by the consumer price index, only five have decreased since January.

    Here’s a closer look at the president’s claims and how prices are changing, or not, during his second term in office.

    To see the average U.S. price of a specific good, click on the drop-down arrow below and select the item you wish to view.

    Eggs

    In the wake of all-time highs set earlier this year, egg prices have collapsed in recent months.

    That downward trend continued in November, with the price dropping a whopping 63 cents from September and settling at $2.86 per dozen. It’s the first time since June 2024 that the average nationwide price for a dozen large Grade A eggs registered below the $3 mark.

    This steep drop-off in prices is a result of a declining number of bird flu cases in commercial and backyard flocks. In the first two months of 2025, tens of millions of birds were affected by highly pathogenic avian influenza across 39 states, according to U.S. Department of Agriculture data. With entire flocks culled to prevent the spread of the virus, the egg supply was strained, leading to shortages in stores and record costs for consumers.

    Following another spike in cases in the early fall, the number of new infections appears to be subsiding again, with less than 2 million U.S. birds affected in the past two months. More notably, zero outbreaks among egg-laying chickens have been reported in November and December.

    Consequently, costs are “falling rapidly” as highlighted by Trump in his prime-time address earlier this week.

    “The price of eggs is down 82% since March, and everything else is falling rapidly. And it’s not done yet, but boy are we making progress. Nobody can believe what’s going on.”

    While egg prices have dropped considerably from March’s record high of $6.23 per dozen, the difference of roughly $3.37 from March to November represents a 54% decrease — not the 82% cited by the president.

    In a statement given to the Tribune, a White House official clarified that he was referring to wholesale costs, not retail prices.

    Milk

    The cost of milk also saw a measurable decrease from the previous month, falling 13 cents.

    A gallon of fresh, fortified whole milk is now priced at $4.00 — that’s 2.5% less than it was in December 2024, before Trump took office.

    Bread

    The average price of white bread fell in November to $1.79 per pound, marking a three-year low for the pantry staple. Time for bread pudding, anyone?

    Bananas

    The cost of bananas fell slightly from September’s all-time highs, dropping just a fraction of a cent to $0.66 per pound in November.

    Recent price inflation is likely a byproduct of the president’s trade war, with tariffs imposed on the country’s top banana suppliers like Guatemala, Ecuador, Costa Rica, Colombia, Honduras and Mexico — all of which are currently subject to an import tax of at least 10%.

    But in mid-November, Trump took action to combat rising grocery costs, announcing that some agricultural products would be exempt from tariffs due to “current domestic demand for certain products” and “current domestic capacity to produce certain products.”

    Both fresh and dried bananas were among the listed exemptions, indicating that lower prices may be around the corner.

    Oranges

    No data on orange prices was available for November.

    However, in September, the cost of navel oranges was listed at $1.80 per pound, less than a cent shy of record highs and nearly 18% more than they were at the start of the Trump administration.

    Drastically low domestic orange production combined with steep tariffs on foreign growers have been helping to push costs skyward. But, as with bananas, oranges are now exempt from most reciprocal tariffs.

    Tomatoes

    As of November, the cost of field-grown tomatoes was $1.83 per pound. That price is 8 cents lower than the previous month of data and down roughly 12% since Trump took power.

    The change is somewhat abnormal given the growing season, as prices typically rise in the fall and peak in the early winter months, and could be attributable to the Trump administration’s recent course reversal on many of its tomato tariffs.

    Chicken

    The cost of fresh, whole chicken fell for a fourth consecutive month, to $2.04 per pound — its lowest price in a year.

    Rising feed costs and the effects of bird flu on the poultry supply chain have driven persistently higher prices, but with the number of cases dropping again, we could see lower prices in the new year.

    Still, the average cost is only about 2 cents less than it was when President Joe Biden left the White House.

    Ground beef

    Ground beef is getting more expensive.

    After shoppers saw some relief in September from climbing costs, the price of ground beef jumped another 18 cents.

    Rising costs can be attributed to a confluence of factors. The U.S. cattle inventory is the lowest it’s been in almost 75 years, and severe drought in parts of the country has further reduced the feed supply, per the USDA. Additionally, steep tariff rates on top beef importers also played a part in higher prices stateside, but as of Nov. 13 high-quality cuts, processed beef and live cattle are exempt from most countries’ levies.

    Still, since the change of administrations, ground beef costs have ballooned by 18% — translating to $1 per pound price increases at the grocery store.

    As of November, a pound of 100% ground beef chuck would set you back about $6.50.

    Electricity

    Electric costs have also been steadily rising.

    At approximately 19 cents per kilowatt-hour, the current price of electricity is a fraction of a cent off August’s high. According to the U.S. Energy Information Administration, the average American household uses 899 kWh every four weeks, translating to a monthly bill of about $170.

    Thankfully, the White House appears to be working to mitigate mounting costs. In his presidential address, Trump claimed that within the next 12 months his administration will have opened 1,600 new electrical generating plants.

    “Prices on electricity and everything else will fall dramatically,” Trump said.

    For many Americans, relief is needed. Since last December, the average price of electricity per kilowatt-hour has increased more than 7%.

    Gasoline

    Declining gas prices were another highlight of Trump’s Wednesday night remarks.

    The cost of gasoline has tumbled from the record-setting prices Americans saw three summers ago under Biden, and just last month, the price at the pump dropped more than 10 cents per gallon.

    “On day one I declared a national energy emergency,” Trump said. “Gasoline is now under $2.50 a gallon in much of the country. In some states, it by the way, just hit $1.99 a gallon.”

    According to the latest CPI data, the average nationwide cost for a gallon of regular unleaded gasoline is $3.23. And though prices are noticeably lower than they were two to three years ago, that average remains higher than it was just a year ago and up nearly 3% during the Trump presidency.

    Prices in Chicago, meanwhile, are about the same month-over-month, costing an average of $3.29 per gallon, according to EIA data.

    Natural gas

    Bucking its previous downward trend, piped utility gas, or natural gas, is another expense that’s climbing. The nationwide cost jumped 3 cents in November, landing at $1.64 per therm.

    On average, Americans are paying close to 8% more to heat their homes, ovens and stovetops than when Biden left office. Year-over-year, that gap is even more drastic: a roughly 10% change or difference of 15 cents per therm.

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    Claire Malon

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  • Trump lowers tariffs on coffee, beef and fruits, as Americans’ concerns about affordability grow

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    (CNN) — President Donald Trump on Friday signed an executive order that retroactively lowers tariffs on beef, tomatoes, coffee and bananas, among other agricultural imports, backdated to Thursday.

    The order Trump signed excludes the goods from “reciprocal” tariff rates, which start at 10% and go as high as 50%. However, the order doesn’t exempt the goods entirely from tariffs.

    For instance, tomatoes from Mexico, a major supplier to the United States, will continue to be tariffed at 17%. That rate took effect in July after a nearly three-decade-old trade agreement expired. Tomato prices increased almost immediately after those tariffs were put in place.

    Many of the commodities that will no longer face “reciprocal” tariffs have seen some of the biggest price increases since Trump took office, in part because of tariffs he imposed and a lack of sufficient domestic supply.

    For instance, Brazil, the top supplier of coffee to the US, has faced tariffs of 50% since August. Consumers paid nearly 20% more for coffee in September compared to the prior year, according to Consumer Price Index data.

    The move comes after voters expressed frustrations with the state of the economy in exit polls earlier this month, voting for Democrats in off-year elections in several states.

    In previewing Friday’s executive order, Treasury Secretary Scott Bessent said earlier this week the moves targeted goods “we don’t grow here in the United States,” referring to coffee and bananas. (While coffee is grown in some parts of the country, it’s mostly imported.)

    Earlier on Friday the Trump administration and the Swiss government announced a new trade framework that calls for lowering tariffs on goods from Switzerland to 15% from 39%, a rate that was among the highest across all countries the US trades with.

    This story has been updated with additional context and developments.

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    Elisabeth Buchwald and CNN

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  • Why Halloween candy is getting more expensive and less chocolate-y

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    New York (CNN) — Even the joy of Halloween will cost more this year, with less chocolate than in years past.

    Expect more packages of tangy gummies, riding off a meteoric high last year. Your kid’s trick-or-treat bag may be filled with a lot of pumpkin-spice-filled-anything. And like last year, cocoa bean industry experts are expecting high price tags to be passed down to consumers.

    And with high cocoa prices, every producer from specialty chocolate makers to candy giants are changing up how they sell their treats. For consumers, this could mean less chocolate per package, higher prices and less cocoa content – meaning less chocolate-y chocolate – compared to before.

    Overall, candy is 10.8% more expensive this Halloween season than last year, according to an analysis of NielsenIQ data conducted by progressive think tank Groundwork Collaborative and shared first with CNN. That’s nearly quadruple the overall rate of inflation.

    In 2024, Halloween candy prices only rose 2.1%, the analysis found.

    Halloween spending is no fun-sized matter. Americans shelled out $7.4 billion in Halloween chocolate and candy sales in 2024, a 2.2% increase from 2023, the National Confectioners Association said.

    Escazú Chocolates co-owner receives Venezuelan cacao beans in Raleigh, North Carolina, in July. Credit: Courtesy Escazú Chocolates via CNN Newsource

    Escazú Chocolates, a bean-to-bar chocolate shop in Raleigh, North Carolina, sources most of its beans from Latin America. The shop said it has always worked with smaller farmers and paid them three to four times the commodity price of cacao – which essentially sets the minimum wage. The spike in prices has pushed up what Escazú pays those workers as well.

    Other cost-cutting measures include offering a smaller hot chocolate size, advertising non-chocolate ice cream toppings and moving to a cheaper location in Raleigh to save on rent.

    And like many small businesses in America, Escazú is being hit by President Donald Trump’s tariffs, affecting not just the chocolate, but also aluminum in its packaging.

    “The tariffs have hit every single every single piece of what goes into every single thing,” Tiana Young, co-owner of Escazú, told CNN. “There is no new normal.”

    Pistachio ghosts and blood orange pistachio chocolate confections at Escazú Chocolates. Credit: Courtesy Escazú Chocolates via CNN Newsource

    Halloween treats may look — and taste — a little different

    Most Americans are not shopping at bean-to-bar specialty shops for Halloween candy. But even consumers of mass-produced candy can taste – and see – the difference compared to a few years ago.

    Wells Fargo economist David Branch said users can expect to see more shrinkflation. Hershey told its retail partners in May that it would adjust its “price pack architecture,” corporate-speak for reducing the amount of product in a package so customers don’t feel like they’re paying more for chocolate.

    Some specialty chocolate makers are also reducing the cocoa content in their bars and increasing the sugar, like selling a bar with 65% cocoa content instead of 75%.

    A family shops for Halloween candy at a Walmart Supercenter on October 16, 2024 in Austin, Texas. Credit: Brandon Bell / Getty Images via CNN Newsource

    Gummy candy and rising cocoa prices enjoy a sort of symbiotic relationship. Younger customers have been gravitating toward chewy, sweet treats – sales of sour candy, for example, grew 7% year over year, according to the National Confectioners Association. By making more gummies and less chocolate, candy companies appeal to those sugar- craving customers while saving their profit margins.

    Companies are also launching special flavors that aren’t as reliant on chocolate — for example, cinnamon-toast-flavored KitKats help save on chocolate costs.

    “We’re seeing more specialty products come out where they add the lower cost (fillings),” Branch said.

    Candy by the numbers

    Branch said that customers can expect to pay as much as last year for Halloween chocolate this year – if not more – up until Valentine’s Day. Although cocoa prices have fallen since the end of 2024, most producers are selling candy manufactured from the beans they bought during that peak. And costs in other sectors, such as energy and packaging, have also driven up costs.

    Halloween candy in Brunswick, ME, in October 2021. Credit: Derek Davis/Portland Press Herald / Getty Images via CNN Newsource

    But at the core of it, it’s the beans.

    Skyrocketing prices of cocoa beans have driven up costs in the chocolate industry. Worldwide cocoa futures rose a whopping 178% in 2024 from a year prior, after a 61% increase in 2023, according to FactSet. The problem traces back to Ghana and the Ivory Coast, which together produce 60% of the world’s cocoa and have been slammed by poor harvests due to climate change.

    Sun-dried cocoa beans inside a warehouse in Assin Foso, Ghana, November 20, 2024. Credit: Francis Kokoroko / Reuters via CNN Newsource
    A labourer carries harvested cocoa pods at a farm in Assin Foso, Ghana, November 21, 2024. Credit: Francis Kokoroko / Reuters via CNN Newsource

    Though cocoa futures plummeted 46% so far this year, customers are seeing the higher prices now because producers are making chocolate out of those pricey beans harvested in 2024, along with tariffs and inflation costs. And cocoa prices are still way above what they were in 2022.

    Groundwork Collaborative found that prices for Hershey’s variety packs rose 22% since last year, Mars variety packs (which contain Milky Way, M&Ms, Three Musketeers and Skittles) rose 12% and Reese’s Peanut Butter cups rose 8%. Even gummies have faced higher prices – the Mondelez gummy candy variety pack, which includes Sour Patch Kids, have risen 9.4%.

    In July, Hershey told retailers that it was raising prices for chocolate products by a percentage in the “lower double-digit range.” But the price increase did not include seasonal Halloween candy, the company said.

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    Ramishah Maruf, Matt Egan and CNN

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  • Ken Griffin has a warning for Trump and the GOP: ‘I would not underestimate how grating a 3% inflation rate could be’ on Americans | Fortune

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    For Citadel CEO Ken Griffin, the political implications of still-elevated inflation are not lost on him.

    Inflation has come down a lot from 9% in 2022 to 2.9% in the government’s latest CPI report. Core PCE prices, the Fed’s favorite gauge of inflation, rose 2.9% in August, matching July’s climb. 

    But inflation has been sticky as tariffs take hold, and Griffin predicted inflation will continue to be in the mid-2% to 3% range next year, still above the Fed’s 2% target.

    “The American voters have been exhausted of inflation,” he told CNBC on Thursday.

    In 2024, the high cost of living was a focal point in Trump’s reelection campaign, and Biden-era inflation hurt Democrats. They lost the White House and Congress, while Trump won all seven swing states.

    Many voters blamed Democratic policies—including stimulus spending—for sustained, high costs, exit polls found.

    “There’s no doubt that the president and the Republicans came to power on the back of frustration with inflation,” Griffin said. “I would not underestimate how grating a 3% inflation rate could be to tens of millions of American households.”

    Inflation could feature heavily in midterm elections next year, as the Republican Party looks to defend narrow majorities in the House and Senate. And voters are souring on Trump’s economy.

    A recent Reuters/Ipsos poll showed only 28% of respondents approved of Trump’s handling of their cost of living. A YouGov/Economist poll put Trump’s approval rating on the economy at an all-time low of 35%.

    One indicator of affordability has been a thorn in Trump’s side: high mortgage rates. Yet as Trump looks to the Fed for homeowner relief, many worry about political influence over the independent body.

    Trump has been criticized lately for pressuring the Federal Reserve and threatening its independence. Critics argue that his efforts to appoint loyalists to the Fed, public calls to lower interest rates, and attempts to remove a sitting governor represent a clear move to sway monetary policy for political purposes. 

    Griffin advised that continued Fed independence would be in Trump’s interest.

    “If I were the president, I would let the Fed do their job,” he said. “I would let the Fed have as much perceived and real independence as possible, because the Fed often has to make choices that are pretty painful to make.”

    The Federal Open Market Committee cut interest rates by a fourth of a percent earlier this month to buoy a slowing labor market. The move comes after months of continued pressure from the Trump administration on Fed Chair Jerome Powell and other committee members to cut rates.

    Still, President Donald Trump has been vocal about cutting rates further, even though the move likely will risk further price increases. 

    Griffin warned that erosion of Fed independence could lead to Americans conflating the White House and central bank.

    “If the president’s perceived as being in control of the Fed, then what happens when those painful choices have to be made?”

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  • Trump announces a 25% tariff on trucks and a 30% tariff on furniture

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    (CNN) — President Donald Trump on Thursday announced sweeping tariffs on various household products, including imported kitchen cabinets and certain kinds of furniture – potentially adding even more costs to a category that has surged in price in recent months. Trump also announced heavy truck tariffs and pharmaceutical tariffs Thursday.

    “We will be imposing a 50% Tariff on all Kitchen Cabinets, Bathroom Vanities, and associated products, starting October 1st, 2025. Additionally, we will be charging a 30% Tariff on Upholstered Furniture,” Trump wrote in a Truth Social post Thursday evening.

    Various tariffs that Trump has imposed have already boosted furniture prices considerably over the past year. Overall, furniture last month cost 4.7% more than in August 2024, according to the Bureau of Labor Statistics. Living room and dining room furniture in particular has grown more expensive – rising 9.5% over the past 12 months, the BLS reported.

    Furniture prices have surged as Trump hiked tariffs on China and Vietnam, the top two sources of imported furniture. Both countries exported $12 billion worth of furniture and fixtures last year, according to US Commerce Department data.

    Furniture prices had largely fallen for the past two and a half years prior to Trump’s tariffs. But Trump said Thursday that foreign manufacturers have oversupplied the US market, and the tariffs were necessary to regain US manufacturing prowess.

    “The reason for this is the large scale ‘FLOODING’ of these products into the United States by other outside Countries,” Trump said. “It is a very unfair practice, but we must protect, for National Security and other reasons, our Manufacturing process.”

    Shares of Wayfair (W), RH (RH) and Williams-Sonoma (WSM) tumbled in after-hours trading.

    Trucks

    Trump on Thursday also announced a 25% tariff on heavy trucks imported into the United States, a trade levy designed to level the playing field for America’s truck-making industry that has been hit relentlessly by the White House’s compounding tariffs.

    “In order to protect our Great Heavy Truck Manufacturers from unfair outside competition, I will be imposing, as of October 1st, 2025, a 25% Tariff on all ‘Heavy (Big!) Trucks’ made in other parts of the World,” Trump said in a Truth Social post Thursday.

    Previous tariffs that Trump has levied — including 50% tariffs on steel, aluminum and copper — have raised costs considerably for US truck manufacturers. Foreign-built trucks, including those made by Germany’s Daimler Truck and International Motors, are typically manufactured in Mexico and imported tariff-free because of the US-Mexico-Canada free trade agreement — so long as roughly two-thirds of the truck’s parts were made in North America.

    Tariffs were, in part, designed to boost US manufacturing and give American factories a leg up over foreign-made products. But steel and aluminum tariffs have shifted the supply-demand balance, raising the price of all metals — both imported and domestic. That means Trump’s tariffs have made some US-built trucks more costly than trucks made by foreign manufacturers.

    “Our Great Large Truck Company Manufacturers, such as Peterbilt, Kenworth, Freightliner, Mack Trucks, and others, will be protected from the onslaught of outside interruptions,” Trump said in his post on Thursday. “We need our Truckers to be financially healthy and strong, for many reasons, but above all else, for National Security purposes!”

    It’s not clear, however, whether the 25% tariff would apply to all heavy-duty trucks or only those that do not comply with the US-Mexico-Canada Agreement.

    If there is no such exemption for Mexico, then it will be the country most severely affected by these tariffs, as 78% of imported heavy trucks come into the US from Mexico, Neil Shearing, chief economist at consultancy Capital Economics, wrote in a note Friday.

    Thursday’s announcement follows an investigation that Trump ordered the Commerce Department to begin in April to determine whether medium-duty and heavy-duty trucks imports pose a national security threat.

    Trump has also threatened several other tariffs, including on lumber, semiconductors and other products.

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  • Americans are feeling a lot worse about the state of the economy

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    (CNN) — American consumers are downbeat about the economy, according to preliminary results of a monthly survey conducted by the University of Michigan.

    The index measuring consumer sentiment fell unexpectedly this month to 55.4 from 58.2 in August as inflation is on the rise and job prospects are worsening. September’s reading also represents a 21% decline compared to a year ago, well before President Donald Trump took office and raised tariffs on practically everything the country imports.

    In addition to inflation and the labor market, tariffs also remain a concern for consumers, Joanne Hsu, the survey’s director, noted.

    “Trade policy remains highly salient to consumers, with about 60% of consumers providing unprompted comments about tariffs during interviews,” Hsu, said in a statement, noting that the same thing happened in the previous month.

    Economists polled by FactSet had been anticipating a minor improvement in consumer sentiment from August. Despite sentiment that’s near historic lows in a survey that goes back to the early 1950s, consumers are still feeling slightly better about the economy now compared to April and May during Trump’s initial rollout of so-called “reciprocal” tariffs, according to prior readings.

    The survey also spotlights what appears to be an increasingly bifurcated economy between income classes, where higher-income Americans continue to spend relatively freely and are feeling more optimistic about the state of the economy, while lower and middle-income Americans are cutting back and are more worried.

    Whiffs of stagflation

    While the economy is nowhere close to where it was in the 1970s and 1980s, when the nation’s annual inflation rate and unemployment rate both hit double-digit levels, recent employment and inflation data have led to mounting concerns of stagflation – when the economy slows significantly while inflation accelerates.

    Consumer prices rose 0.4% last month, bringing the annual inflation rate to 2.9%, according to Consumer Price Index data released Thursday. Meanwhile, there’s a laundry list of recent data pointing to a weakening labor market.

    For example, first-time applications for unemployment benefits surged last week to their highest level in four years. Also for the first time in four years, there are more people looking for work than there are jobs available for them.

    To top it off, the August employment report showed employers hired just 22,000 new workers and the unemployment rate rose to 4.3%, the highest level since 2021. The labor force snapshot also revealed that the US economy lost 13,000 workers in June, marking the first month since 2020 when employers laid off more workers than they hired.

    “Economic sentiment declined more than expected in September largely because Americans are fearful of losing their jobs,” Heather Long, chief economist at Navy Federal Credit Union, said in a statement on Friday.

    This string of data has essentially guaranteed the Federal Reserve will cut interest rates at its monetary policy meeting next week after having held rates steady for close to a year. Traders are also now betting on cuts at the subsequent two meetings this year, which has helped push stocks to record highs.

    This story has been updated with additional developments and context.

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    Elisabeth Buchwald and CNN

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  • Home Depot says it will raise some prices because of tariffs

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    (CNN) — Home Depot said Tuesday that some of its prices could be going up because of the cost of tariffs.

    Until now, America’s largest home improvement retailer has limited what it has said about the impact of tariffs on its prices. But after reporting quarterly results Tuesday, CFO Richard McPhail said Home Depot would have to implement some price increases as a result of the Trump administration’s taxes on imports.

    “For some imported goods, tariff rates are significantly higher today than they were at this time last quarter,” he said in an interview with the Wall Street Journal that was confirmed by the company to CNN. “So as you would expect, there will be modest price movement in some categories, but it won’t be broad based.”

    Three months ago, when asked about the impact of tariffs on pricing, the company said it would not speculate on its price plans, but that tariffs might lead it to no longer offer some items.

    Home Depot said that a little less than half of its inventory comes from suppliers outside the United States. The company has previously said it was looking to diversify its supply base so that no foreign country supplied more than 10% of its goods.

    Despite sales in the quarter jumping 5% from last year, Home Depot’s net income slipped 0.2% over the same time period due to higher operating costs. The company believes its full-year earnings per share will fall 2% as economic uncertainty and high interest rates are keeping many consumers from moving forward with major home renovation plans.

    “Certainly some relief on mortgage rates in particular could help,” CEO Ted Decker said on the earnings call. Mortgage rates have spent most of the year stuck just under 7%.

    “When we talk to our customers… both consumers and pros, the number one reason for deferring the large project is general economic uncertainty. That is larger than prices of projects, of labor availability. By a wide margin, economic uncertainty is number one,” he added.

    But company executives said Home Depot is confident it will see those large projects appear at some point in the future, driving better results.

    “Our customers tell us the rate environment is giving them pause on larger remodeling projects,” McPhail said. “Our pros… say that their customers tell them they’re deferring projects. They’re not canceling projects. Home improvement demand persists. And so our job is to position ourselves to be ready for that.”

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    Chris Isidore and CNN

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  • New data signals cooling inflation ahead of CPI report

    New data signals cooling inflation ahead of CPI report

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    The Producer Price Index (PPI) came in cooler than expected in July, according to new data from the Bureau of Labor Statistics (BLS) released Tuesday morning.

    US producer prices, a key measure of wholesale inflation and often a signal for where consumer prices are heading, rose just 0.1% month over month last month after rising 0.2% in June. The pace was below economist forecasts. The index rose 2.2% year over year, just a touch above the Federal Reserve’s 2% inflation target.

    “It’s positive for equities,” John Stoltzfus, chief investment strategist at Oppenheimer, told Yahoo Finance’s Morning Brief. “It releases some of the dark sentiment that had gripped [the market] over the course of the start this month. We can’t help but think that this gives the Federal Reserve the opportunity to begin cutting rates.”

    The next update on consumer price increases will come Wednesday morning. (AP Photo/David Zalubowski, File)

    The next update on consumer price increases will come Wednesday morning. (AP Photo/David Zalubowski, File) (ASSOCIATED PRESS)

    Inflation has remained above the Federal Reserve’s 2% target on an annual basis. But recent economic data, including a sell-off-inducing July jobs report, has helped fuel a narrative the central bank should cut rates sooner rather than later.

    Notably, the Fed’s preferred inflation gauge, the so-called core PCE price index, showed inflation in June was unchanged from the prior month and marked the slowest annual increase for core PCE in more than three years.

    As of Tuesday, markets were pricing in a nearly 100% chance the Federal Reserve cuts interest rates by the end of its September meeting. However, the odds of a 50 basis point cut or a 25 basis point cut are now split 50/50 after a roughly 60/40 chance placed by traders last week, per the CME FedWatch Tool.

    Tuesday’s PPI data serves as the latest to build the case for Fed rate cuts. It will also set up one of the most important data points shaping future Federal Reserve interest rate policy: July’s Consumer Price Index (CPI).

    The inflation report, set for release at 8:30 a.m. ET on Wednesday, is expected to show headline inflation of 3.0%, unchanged from June’s reading.

    Over the prior month, consumer prices are expected to have risen 0.2%, an uptick from the prior month’s 0.1% decline as energy prices are largely expected to pick up again.

    On a “core” basis, which strips out the more volatile costs of food and gas, prices in July are expected to have risen 3.2% over last year, a slowdown from the 3.3% annual increase seen in June. Monthly core prices, however, are expected to rise 0.2% compared to 0.1% increase in June, according to Bloomberg data.

    “CPI in June surprised to the downside,” Bank of America economist Michael Gapen wrote in a note ahead of the report. “We expect some of that surprise to reverse in July.”

    To note, June’s data was the first time since May 2020 that monthly headline CPI came in negative. It was also the slowest annual gain in prices since March 2021.

    While July’s inflation data will likely not be “quite as low as June, it is in line with prior trend in deflation and should meet the Fed’s benchmark for beginning rate cuts in September,” Gapen said.

    Core inflation has remained stubbornly elevated due to higher costs of shelter and core services like insurance and medical care.

    Shelter prices are expected to reverse June’s deceleration after the index for rent and owners’ equivalent rent (OER) posted their smallest monthly increases since August 2021. Owners’ equivalent rent is the hypothetical rent a homeowner would pay for the same property.

    Non-housing services also edged down in June, “owing in large part to a plunge in airfares. For July, however, we expect the decline in airfares to be much more moderate,” Bank of America’s Gapen noted.

    “Non-housing services inflation should moderate over time given cooling services wage inflation; however, a sustained period of deflation is unlikely,” he warned.

    Alexandra Canal is a Senior Reporter at Yahoo Finance. Follow her on X @allie_canal, LinkedIn, and email her at alexandra.canal@yahoofinance.com.

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  • CNBC Daily Open: Dow’s worst day in 2024, Nvidia shares pop

    CNBC Daily Open: Dow’s worst day in 2024, Nvidia shares pop

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    Jensen Huang, co-founder and chief executive officer of Nvidia Corp., during the Nvidia GPU Technology Conference (GTC) in San Jose, California, US, on Tuesday, March 19, 2024. 

    David Paul Morris | Bloomberg | Getty Images

    This report is from today’s CNBC Daily Open, our international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Like what you see? You can subscribe here.

    What you need to know today

    Dow sinks 600 points
    The     Dow Jones Industrial Average suffered its worst day of the year, dropping over 600 points on Thursday. Boeing led the decline on the Dow. Despite reaching intraday record highs earlier, both the S&P 500 and the Nasdaq Composite ended the day in negative territory. Nvidia‘s blockbuster earnings and guidance failed to prop up markets, with more than 400 stocks on the S&P 500 trading lower. Treasury yields extended gains as the Fed delays rate cuts, while oil prices bounced back after a three-day decline.

    Nvidia pops
    Shares of Nvidia soared as much as 11% after the AI chipmaker’s earnings that beat Wall Street’s estimates. It also issued strong guidance as demand for its artificial intelligence accelerators remains robust. Shares passed $1,000 for the first time, reaching an all-time high of $1,063.20 during intraday trading, and are up about 111% this year. 

    Musk disapproves China EV tariffs
    Tesla CEO Elon Musk said he’s not in favor of tariffs on Chinese electric vehicles, which were imposed last week by President Joe Biden. “Neither Tesla nor I asked for these tariffs,” Musk said in response to a question from CNBC’s Karen Tso. “Tesla competes quite well in the market in China with no tariffs and no preferential support. I’m in favor of no tariffs.”

    Boeing sinks
    Shares of Boeing dropped 7.6% after CFO Brian West said the company would continue to burn through cash this year.  Delivery of new planes, a major source of revenue, will not improve in the second quarter. Boeing is facing a host of production issues related to safety concerns. The company burned through nearly $4 billion in cash in the first quarter and West believes that figure could be similar or “possibly a little worse” in the second quarter.

    Asia-Pacific markets slide
    Stocks in the Asia-Pacific region fell on Friday as investors assessed inflation data from Japan. The Nikkei 225 fell 1% as inflation slowed for the second straight month. While the Bank of Japan is under pressure to raise interest rates, inflation is expected to push higher in the coming months. South Korea’s Kospi dropped 1% after a report said Samsung Electronics’ new chip wasn’t ready for Nvidia. Samsung shares fell 2.4%. Hong Kong’s Hang Seng dipped 1.3%, mainland China’s CSI 300 index declined 0.4%, and Australia’s S&P/ASX 200 shed 1.1%. 

    [PRO] What’s next for Nvidia?
    Wall Street analysts are revising their price targets for Nvidia upwards after its blowout earnings and guidance. Some had feared a slowdown in demand as Amazon and Microsoft wait for Nvidia’s more powerful AI chips. Nvidia’s decision to split its stock could provide more upside for investors.

    The bottom line

    Nvidia's blockbuster earnings and forecast couldn't stop Wall Street from taking a late dive. Nvidia held up well, its stock closing above $1,000, up 9% on the day after reassuring investors its sales of graphics chips that power artificial intelligence weren't a flash in the pan.

    What comes next for Nvidia is a 10-for-1 stock split; Post-split shares will start trading on June 10. Stock split will help retail investors, put off by a share price of a thousand-plus dollars, to buy them at around $100. Nvidia shares are up more than 240% in the last 12 months.

    CNBC's Ryan Ermey explains more on the psychology of the move and how the mechanism of the stock split works.

    So what's freaking markets? According to the Charles Schwab Trader Sentiment Survey, the bullish outlook among traders fell to 46% from 53% in the second quarter.

    "Traders began the year feeling pretty confident that the economy was improving and Fed rate cuts would be quick to follow," said James Kostulias, head of Trading Services at Charles Schwab. "But inflation concerns have jumped significantly."

    Before the latest minutes from the Federal Reserve meeting, suggesting concern about stubborn inflation, some strategists had estimated the Fed could cut interest rates at least three times this year as prices cooled. Now, traders are lowering their expectations to just one reduction, possibly in September or November.

    As the first-quarter earnings season winds down, investors are shifting their attention to geopolitical concerns.

    "The Fed has been pretty clear that they're not going to cut rates, so you don't have this, 'Will they or won't they' [scenario] keeping everybody on edge. We are going to start to see a turn to some of this geopolitical stuff, whether it's elections or the two ongoing wars," said Melissa Brown, managing director of applied research at SimCorp.

    While events such as the U.S. and UK elections don't necessarily result in economic impacts, they do increase uncertainty, Brown noted.

    "People may go from saying 'I'm just going to buy now,' to, 'Look, I'm gonna wait and see the outcome of this before I decide to commit more money to market,'" Brown said. 

    The Daily Open will be back on Tuesday as U.S. markets will be closed for Memorial Day on Monday. 

     — CNBC's Hakyung Kim, Samantha Subin, Ryan Ermey, Jeff Cox, Sophie Kinderlin, Spencer Kimball, Ece Yildirim, Sarah Whitton and Ryan Browne contributed to this report.

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  • CNBC Daily Open: Nvidia shares top $1,000 on AI boom

    CNBC Daily Open: Nvidia shares top $1,000 on AI boom

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    A sign is posted in front of Nvidia headquarters on May 21, 2024 in Santa Clara, California. 

    Justin Sullivan | Getty Images

    This report is from today’s CNBC Daily Open, our new, international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Like what you see? You can subscribe here.

    What you need to know today

    Nvidia to split stock, sales to soar
    Shares of     Nvidia rose more than 7%, topping $1,000 for the first time, in after-hours trading after its first-quarter earnings and sales beat analysts’ expectations. The chipmaker expects second-quarter sales of $28 billion, compared with estimates of $26.6 billion. The company plans to split its stock 10 for 1.

    Wall Street sinks on inflation fears
    The Dow Jones Industrial Average plunged more than 200 points, marking its worst day so far this month as minutes of the Federal Reserve’s latest meeting stoked concerns about sticky inflation. The S&P 500 and the Nasdaq Composite also lost ground. Treasury yields inched higher as the prospect of rate cuts was pushed further out. Oil prices fell for the third consecutive day ahead of an OPEC meeting.  

    Fed inflation worries
    Minutes of the Federal Reserve’s latest rate-setting meeting showed the central bank was concerned about the “lack of progress” in bringing inflation closer to its 2% target, sending the Dow down 200 points. The minutes also revealed that “various participants mentioned a willingness to tighten policy further should risks to inflation materialize in a way that such an action became appropriate.” The Fed policymakers maintained the benchmark borrowing rate within the 5.25%-5.5% range.

    Alexa’s AI makeover
    Amazon plans to upgrade its Alexa voice assistant with generative artificial intelligence and charge a monthly subscription for the service, according to people familiar with the plans. The move comes after Google and OpenAI launched similar products. Subscription for the new AI-powered Alexa will not be included in the $139 per year Prime offering. 

    Vivek takes Buzzfeed stake
    Buzzfeed shares shot up 20% after the former GOP presidential candidate Vivek Ramaswamy bought an 8% stake in the online media company. In a filing with the Securities and Exchange Commission, Ramaswamy said he would talk with Buzzfeed’s management about every aspect of the company’s operations, including an acquisition by a third party. The media outlet went public in 2021 and has seen its shares fall 94% since then.

    [PRO] Under-the-radar AI plays
    Hedge funds are loading up on these lesser-known beneficiaries from the artificial intelligence boom while cutting back on their exposure to mega caps, according to Goldman Sachs. The Wall Street investment bank analyzed the holdings of 707 hedge funds with $2.7 trillion of gross equity positions at the start of the second quarter.

    The bottom line

    There were two major announcements after the markets closed on Wednesday.

    First from Prime Minister Rishi Sunak of the United Kingdom, the world's sixth-largest economy with a GDP of about $3 trillion, calling a general election, which barely had any market impact. The pound was largely unchanged.

    The second was from a 31-year-old graphics chip company valued at $2.3 trillion, Nvidia, which delivered its much-anticipated earnings — and saw its shares soar to record highs.  

    There were expectations of a $200 billion swing one way or the other in the company's stock, depending on the outcome of its earnings. In after-hours trading, the stock rose more than 7%. Nvidia's shares are up 92% this year and 200% over the last 12 months. Nvidia is the bedrock of the artificial intelligence revolution, with Google, Amazon, Meta, and Microsoft estimated to be spending $200 billion buying up its AI chips. 

    "The next industrial revolution has begun," Chief Executive Officer Jensen Huang said in a statement. "We are poised for our next wave of growth." 

    Dan Niles, founder of Niles Investment Management, has likened Nvidia to Cisco in the 1990s. Cisco was the go-to company for internet gear. From 1994 to its peak in 2000, Cisco's shares rose 4000%. Niles believes Nvidia will go through a similar cycle.

    "We're still really early in the AI build," Niles told CNBC's "Money Matters" on Monday. "I think the revenue will go up three to four times from current levels over the next three to four years, and I think the stock goes with it."

    "If you look at today for the AI build-out, who's really driving that?" Niles said. "It's the most profitable companies on the planet — it's Microsoft, it's Google, it's Meta, and they're driving this."

    Crucially, Nvidia said it expects second-quarter sales to soar to $28 billion, up from the $26.6 billion analysts were expecting. Even with the prospects of increased competition from Advanced Micro Devices and Google building its own custom chip, Piper Sandler analysts expect Nvidia to keep at least 75% of the AI accelerator market.

    Nvidia's done everything that's been asked of it, now it's over to Wall Street to decide if it's time to crack through more milestones or consolidate.

    — CNBC's Kif Leswing, Jeff Cox, Kate Rooney, Hakyung Kim, Lisa Kailia Han, Yun Li and Rohan Goswami contributed to this report.

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  • CNBC Daily Open: S&P 500 and Nasdaq hit new heights ahead of Nvidia’s earnings

    CNBC Daily Open: S&P 500 and Nasdaq hit new heights ahead of Nvidia’s earnings

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    Traders work on the floor of the New York Stock Exchange during morning trading on May 17, 2024 in New York City. 

    Angela Weiss | AFP | Getty Images

    This report is from today’s CNBC Daily Open, our new, international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Like what you see? You can subscribe here.

    What you need to know today

    Wall Street reaches new highs
    The     S&P 500 and the Nasdaq Composite rose to fresh record highs as investors await earnings from AI chipmaker Nvidia after the close on Wednesday. The Dow Jones Industrial Average closed 0.17% higher at 39,872.99. Nvidia’s shares rose 0.6% with option traders pricing in swings of as much as 9% up or down in reaction to its earnings. Treasury yields fell and oil prices drifted lower.

    Rate cuts several months away
    Federal Reserve Governor Christopher Waller said he does not think further rate increases are necessary, but he will need convincing before backing any rate cuts. “I need to see several more months of good inflation data before I would be comfortable supporting an easing in the stance of monetary policy,” Waller said. According to the CME Group’s FedWatch Tool, the first rate cut could come as early as September. 

    Gasoline reserve release
    The Biden administration will release 1 million barrels of gasoline from reserves to reduce prices at the pump ahead of the Fourth of July holiday. OPEC production cuts and fears the Israel-Hamas war could engulf the wider Middle East sent U.S. gasoline futures soaring 19%. “By strategically releasing this reserve in between Memorial Day and July 4th, we are ensuring sufficient supply flows to the tri-state [region] and northeast at a time hardworking Americans need it the most,” Energy Secretary Jennifer Granholm said.

    Pixar job cuts
    Pixar Animation Studios will lay off about 175 employees, or around 14% of its workforce, a spokesperson for parent company Walt Disney told CNBC. CEO Bob Iger wants Pixar to focus on box office releases and not on short series for Disney+. Pixar and Walt Disney Animation have struggled to generate more than $480 million at the global box office since 2019. Before the pandemic, “Coco” generated $796 million globally, while “Incredibles 2″ tallied $1.24 billion, and “Toy Story 4” snared $1.07 billion worldwide.

    Asia-Pacific stocks eke out gains
    Hong Kong’s Hang Seng rose 0.18% and mainland China’s CSI 300 index gained 0.7% on Wednesday. Chinese electric car company Xpeng reported an improvement in profit margin and an upbeat outlook for second-quarter deliveries — its Hong Kong-listed shares soared 13%. Japan’s Nikkei 225 was down 0.5% as investors digested a slew of economic data. South Korea’s Kospi and Australia’s S&P/ASX 200 both inched higher. As did New Zealand’s S&P/NZ50, up 0.1%, after the Reserve Bank of New Zealand held rates unchanged at 5.5% for the seventh consecutive time. 

    [PRO] When Nvidia rises
    CNBC’s Ganesh Rao takes a look at six artificial intelligence-related stocks that have historically reacted positively to Nvidia’s quarterly earnings. Five listed in the United States and one in Japan have risen between 6% and 33% in the past after Nvidia revealed bumper earnings.

    The bottom line

    Few CEOs are strong-willed and have the vision or audacity to redefine their industries. Steve Jobs revolutionized mobile phones with the iPhone, Elon Musk challenged gas-guzzling Detroit's dominance with electric vehicles, and Jamie Dimon, CEO of JPMorgan Chase, has done the same for the often-criticized grey banking industry.

    Dimon might seem like an unusual addition to this list of innovators. Yet, he took a bank ranked eighth on Wall Street in 2006 and propelled it to the top spot within five years, surpassing giants like Goldman Sachs, Deutsche Bank, and Citi.

    However, Dimon's inclusion here isn't solely due to his bank's impressive growth. Like his peers, he isn't afraid to stand up to his big institutional investors. This was evident at a recent investor day, where the headline revolved around his potential retirement in the next five years.

    When pressed on when the bank would repurchase its own shares, Dimon's response was unequivocal: "I want to make it really clear, OK? We're not going to buy back a lot of stock at these prices."

    He went on to say, "Buying back stock of a financial company greatly in excess of two times tangible book is a mistake. We aren't going to do it."CNBC's Hugh Son covered this exchange in detail, providing further insight into the share buyback debate.

    Unlike CEOs of companies like Apple, Alphabet, and Meta, who have succumbed to pressure and used their vast cash reserves for share buybacks, Dimon resists this trend. Share buybacks primarily benefit large investors by inflating the value of their holdings.

    Dimon could have easily agreed, considering his estimated $2.2 billion net worth, largely tied to his bank holdings. Critics might argue it's easy for him to forego additional wealth, given his substantial $36 million compensation package in 2023.

    However, it's undeniable that Dimon has successfully navigated nearly two decades of banking crises, recessions, and a volatile political climate. He has built JPMorgan Chase into the largest bank in the United States by assets, with a market capitalization approaching $600 billion, and at 68 he's still going strong.

    — CNBC's Jeff Cox, Hakyung Kim, Alex Harring, Sophie Kinderlin, Leslie Josephs, Hugh Son, Spencer Kimball and Sarah Whitton contributed to this report.

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  • CNBC Daily Open: New highs on Wall Street, Fed’s Waller says rate cuts months away

    CNBC Daily Open: New highs on Wall Street, Fed’s Waller says rate cuts months away

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    Traders work on the floor of the New York Stock Exchange during morning trading on May 17, 2024 in New York City. 

    Angela Weiss | AFP | Getty Images

    This report is from today’s CNBC Daily Open, our new, international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Like what you see? You can subscribe here.

    What you need to know today

    Wall Street reaches new highs
    The     S&P 500 and the Nasdaq Composite rose to fresh record highs as investors await earnings from AI chipmaker Nvidia after the close on Wednesday. The Dow Jones Industrial Average closed 0.17% higher at 39,872.99. Nvidia’s shares rose 0.6% with option traders pricing in swings of as much as 9% up or down in reaction to its earnings. Treasury yields fell and oil prices drifted lower.

    Rate cuts several months away
    Federal Reserve Governor Christopher Waller said he does not think further rate increases are necessary, but he will need convincing before backing any rate cuts. “I need to see several more months of good inflation data before I would be comfortable supporting an easing in the stance of monetary policy,” Waller said. According to the CME Group’s FedWatch Tool, the first rate cut could come as early as September. 

    Gasoline reserve release
    The Biden administration will release 1 million barrels of gasoline from reserves to reduce prices at the pump ahead of the Fourth of July holiday. OPEC production cuts and fears the Israel-Hamas war could engulf the wider Middle East sent U.S. gasoline futures soaring 19%. “By strategically releasing this reserve in between Memorial Day and July 4th, we are ensuring sufficient supply flows to the tri-state [region] and northeast at a time hardworking Americans need it the most,” Energy Secretary Jennifer Granholm said.

    Pixar job cuts
    Pixar Animation Studios will lay off about 175 employees, or around 14% of its workforce, a spokesperson for parent company Walt Disney told CNBC. CEO Bob Iger wants Pixar to focus on box office releases and not on short series for Disney+. Pixar and Walt Disney Animation have struggled to generate more than $480 million at the global box office since 2019. Before the pandemic, “Coco” generated $796 million globally, while “Incredibles 2″ tallied $1.24 billion, and “Toy Story 4” snared $1.07 billion worldwide.

    Singapore Airlines: one dead, 30 injured
    One person died and 30 people were injured aboard a Singapore Airlines flight that was hit by severe turbulence and forced to land in Thailand. Singapore Airlines Flight 321 encountered “sudden, severe turbulence” about 10 hours into a flight from London to Singapore, the airline said. The Boeing 777-300ER plane was carrying 211 passengers and 18 crew members.

    [PRO] Stubborn bear
    With the S&P 500 index up more than 11% so far this year, Wall Street strategists have been revising their previously pessimistic outlooks for the benchmark. Against this backdrop, CNBC’s Jesse Pound explores why JPMorgan’s Marko Kolanovic is maintaining his negative outlook for stocks.

    The bottom line

    Few CEOs are strong-willed and have the vision or audacity to redefine their industries. Steve Jobs revolutionized mobile phones with the iPhone, Elon Musk challenged gas-guzzling Detroit's dominance with electric vehicles, and Jamie Dimon, CEO of JPMorgan Chase, has done the same for the often-criticized grey banking industry.

    Dimon might seem like an unusual addition to this list of innovators. Yet, he took a bank ranked eighth on Wall Street in 2006 and propelled it to the top spot within five years, surpassing giants like Goldman Sachs, Deutsche Bank, and Citi.

    However, Dimon's inclusion here isn't solely due to his bank's impressive growth. Like his peers, he isn't afraid to stand up to his big institutional investors. This was evident at a recent investor day, where the headline revolved around his potential retirement in the next five years.

    When pressed on when the bank would repurchase its own shares, Dimon's response was unequivocal: "I want to make it really clear, OK? We're not going to buy back a lot of stock at these prices."

    He went on to say, "Buying back stock of a financial company greatly in excess of two times tangible book is a mistake. We aren't going to do it."CNBC's Hugh Son covered this exchange in detail, providing further insight into the share buyback debate.

    Unlike CEOs of companies like Apple, Alphabet, and Meta, who have succumbed to pressure and used their vast cash reserves for share buybacks, Dimon resists this trend. Share buybacks primarily benefit large investors by inflating the value of their holdings.

    Dimon could have easily agreed, considering his estimated $2.2 billion net worth, largely tied to his bank holdings. Critics might argue it's easy for him to forego additional wealth, given his substantial $36 million compensation package in 2023.

    However, it's undeniable that Dimon has successfully navigated nearly two decades of banking crises, recessions, and a volatile political climate. He has built JPMorgan Chase into the largest bank in the United States by assets, with a market capitalization approaching $600 billion, and at 68 he's still going strong.

    — CNBC's Jeff Cox, Hakyung Kim, Alex Harring, Sophie Kinderlin, Leslie Josephs, Hugh Son, Spencer Kimball and Sarah Whitton contributed to this report.

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  • CNBC Daily Open: Dow at record high, Iran’s president dies in helicopter crash

    CNBC Daily Open: Dow at record high, Iran’s president dies in helicopter crash

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    Traders work on the floor of the New York Stock Exchange during morning trading on May 17, 2024 in New York City. 

    Angela Weiss | AFP | Getty Images

    This report is from today’s CNBC Daily Open, our new, international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Like what you see? You can subscribe here.

    What you need to know today

    Asia markets rise
    Mainland China’s CSI 300 index rose 0.2% and Hong Kong’s     Hang Seng climbed 0.5% as China kept its one- and five-year loan prime rates on hold. It comes after Beijing on Friday laid out measures to boost the property market.. Elsewhere in the Asia-Pacific region, Japan’s Nikkei 225 was the biggest mover, up 1%, while South Korea’s Kospi added 0.5% ahead of an interest rate decision on Thursday. Australia’s S&P/ASX 200 gained 0.6%.

    Iran’s president killed in helicopter crash
    Iranian President Ebrahim Raisi died in a helicopter crash along with Foreign Minister Hossein Amirabdollahian, state media reported Monday. “All the passengers of the helicopter carrying the Iranian president and foreign minister were martyred,” semi-official news agency Mehr News reported. Raisi was returning after inaugurating a dam on Iran’s common border with the Azerbaijan Republic, when his helicopter crashed on landing in northern Iran’s Varzaqan region.

    Dow settles above 40,000
    The Dow Jones Industrial Average closed above the 40,000 mark for the first time in history. The 30-stock index was up for the fifth consecutive week and climbed more than 6% this year. The S&P 500 and Nasdaq eked out gains on Friday and are up more than 11% in 2024. Treasury yields rose and oil prices climbed higher.

    Tesla layoffs continue
    Tesla is cutting approximately 600 more employees across its manufacturing facilities and engineering offices in California. Elon Musk’s electric vehicle venture is facing increased competition and has already warned employees of plans to cut 10% of its workforce. Musk recently fired his Supercharger team before reportedly rehiring some members, a move reminiscent of the job cuts at Twitter after he acquired the company and later rebranded it as X.

    GameStop tanks
    GameStop shares dropped nearly 20% after announcing plans to sell additional shares. The company warned it expects a first-quarter net loss of up to $37 million and a significant drop in sales. The brick-and-mortar games retailer, which is grappling with e-commerce-based competitors, was taking advantage of rally in GameStop’s stock fueled by the return of “Roaring Kitty”  on social media. Wedbush analyst Michael Pachter said GameStop is not in a position to be profitable.

    [PRO] Can Nvidia deliver?
    Wall Street has crashed through one milestone after another and it has done it without the help of the so-called Magnificent Seven tech stocks in the last three months. But all that could change this week when Nvidia releases its earnings. CNBC’s Sarah Min tells us what to expect from the AI darling and how high it could go if it gives the right message to investors. 

    The bottom line

    Let's be honest — we've all thought about it. Quitting work and telling your boss he's a worse manager than Michael Scott or David Brent. More often than not, you're just happy to be moving on. But while they were just shuffling paper, Jan Leike was confronting what could be an existential threat.

    Leike was part of OpenAI's safety leadership team. In his departing X post, he said the Microsoft-backed startup's "safety culture and processes have taken a backseat to shiny products," adding, "We urgently need to figure out how to steer and control AI systems much smarter than us."

    What OpenAI demonstrated at the start of the week was a huge step in human-computer interaction. The AI agent, with uncanny realism, easily translated from Italian to English. Sal Khan, CEO of Khan Academy, used the bot to guide his son through a math problem. Later on CNBC, Khan said he was introducing a teaching bot, Khanmigo, for all U.S. teachers, funded by Microsoft.

    A teacher looking at that demonstration would, rightly, be alarmed at the pace of development and deployment. It is an existential threat to their jobs and to possibly all jobs. Goldman Sachs estimated 300 million jobs could be affected by generative AI, the IMF believes 60% of jobs in advanced economies are exposed to machine learning, about half negatively, and ResumeBuilder says AI-related job losses are on the rise.

    Khan believes there is a happy balance between teaching and AI developments. While some are concerned students are getting ChatGPT, Gemini, and Claude to write their essays, the teaching profession is coming up with solutions. Rather than pupils writing essays, they can critique essays written by bots. Khanmigo is said to offer an environment for pupils to work on essays with students, and the AI reports progress to the teacher.

    The impact will not only be felt in the classroom — every aspect of a company's workflow needs a reappraisal. ServiceNow CEO Bill McDermott says we are in the midst of a generative AI transformation of the $7 trillion industrial complex. No job will go untouched. According to Goldman Sachs, generative AI could boost global GDP by up to 7% annually over the next decade.

    But as Leike wrote, "Building smarter-than-human machines is an inherently dangerous endeavor. OpenAI is shouldering an enormous responsibility on behalf of all of humanity." He added, "OpenAI must become a safety-first AGI company," referring to artificial general intelligence.

    Sam Altman, OpenAI's CEO, responded to Leike's thread on X, "He's right, we have a lot more to do; we are committed to doing it."

    All this wouldn't be possible without Nvidia — its powerful graphics chips are what's needed to provide the computational capacity to drive these AI models — and it reports earnings on Wednesday after the bell. If Wall Street struggles for momentum, this $2.3 trillion behemoth will be closely watched to see how much demand there is for more of its powerful chips and if generative AI is more than just another dotcom bubble. 

    — CNBC's Sarah Min, Haden Field, Lisa Kailai Han, Alex Harring, Yun Li, Lora Kolodny, Jordan Novet, Lim Hui Jie and Lee Ying Shan contributed to this report.

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  • CNBC Daily Open: Dow at record close, GameStop shares crash

    CNBC Daily Open: Dow at record close, GameStop shares crash

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    Andriy Onufriyenko | Moment | Getty Images

    This report is from today’s CNBC Daily Open, our new, international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Like what you see? You can subscribe here.

    What you need to know today

    Dow settles above 40,000
    The     Dow Jones Industrial Average closed above the 40,000 mark for the first time in history. The 30-stock index was up for the fifth consecutive week and climbed more than 6% this year. The S&P 500 and Nasdaq eked out gains on Friday and are up more than 11% in 2024. Treasury yields rose and oil prices climbed higher.

    Tesla layoffs continue
    Tesla is cutting approximately 600 more employees across its manufacturing facilities and engineering offices in California. Elon Musk’s electric vehicle venture is facing increased competition and has already warned employees of plans to cut 10% of its workforce. Musk recently fired his Supercharger team before reportedly rehiring some members, a move reminiscent of the job cuts at Twitter after he acquired the company and later rebranded it as X.

    AI start-up raises billions
    CoreWeave, an AI infrastructure startup powered by Nvidia’s chips, raised $7.5 billion in debt financing led by Blackstone, following a recent $1.1 billion equity round. The funds will be used to expand its cloud data centers and meet the soaring demand for AI infrastructure. With a limited supply of Nvidia chips, Microsoft is relying on CoreWeave to supply OpenAI with computing power. It’s also competing with Amazon and Google. 

    GameStop tanks
    GameStop shares dropped nearly 20% after announcing plans to sell additional shares. The company warned it expects a first-quarter net loss of up to $37 million and a significant drop in sales. The brick-and-mortar games retailer, which is grappling with e-commerce-based competitors, was taking advantage of rally in GameStop’s stock fueled by the return of “Roaring Kitty”  on social media. Wedbush analyst Michael Pachter said GameStop is not in a position to be profitable.

    Iran’s president in helicopter ‘crash landing’
    A helicopter carrying Iranian President Ebrahim Raisi has suffered a “crash landing,” state media reported on Sunday. Iran’s Vice President Mohsen Mansouri reported that two people from the helicopter flight had made contact with the rescue team but Raisi’s condition was unclear, according to state media. The helicopter came down in Northern Iran as it was crossing mountain terrain in heavy fog.

    [PRO] Can Nvidia deliver?
    Wall Street has crashed through one milestone after another and it has done it without the help of the so-called Magnificent Seven tech stocks in the last three months. But all that could change this week when Nvidia releases its earnings. CNBC’s Sarah Min tells us what to expect from the AI darling and how high it could go if it gives the right message to investors. 

    The bottom line

    Let's be honest — we've all thought about it. Quitting work and telling your boss he's a worse manager than Michael Scott or David Brent. More often than not, you're just happy to be moving on. But while they were just shuffling paper, Jan Leike was confronting what could be an existential threat.

    Leike was part of OpenAI's safety leadership team. In his departing X post, he said the Microsoft-backed startup's "safety culture and processes have taken a backseat to shiny products," adding, "We urgently need to figure out how to steer and control AI systems much smarter than us."

    What OpenAI demonstrated at the start of the week was a huge step in human-computer interaction. The AI agent, with uncanny realism, easily translated from Italian to English. Sal Khan, CEO of Khan Academy, used the bot to guide his son through a math problem. Later on CNBC, Khan said he was introducing a teaching bot, Khanmigo, for all U.S. teachers, funded by Microsoft.

    A teacher looking at that demonstration would, rightly, be alarmed at the pace of development and deployment. It is an existential threat to their jobs and to possibly all jobs. Goldman Sachs estimated 300 million jobs could be affected by generative AI, the IMF believes 60% of jobs in advanced economies are exposed to machine learning, about half negatively, and ResumeBuilder says AI-related job losses are on the rise.

    Khan believes there is a happy balance between teaching and AI developments. While some are concerned students are getting ChatGPT, Gemini, and Claude to write their essays, the teaching profession is coming up with solutions. Rather than pupils writing essays, they can critique essays written by bots. Khanmigo is said to offer an environment for pupils to work on essays with students, and the AI reports progress to the teacher.

    The impact will not only be felt in the classroom — every aspect of a company's workflow needs a reappraisal. ServiceNow CEO Bill McDermott says we are in the midst of a generative AI transformation of the $7 trillion industrial complex. No job will go untouched. According to Goldman Sachs, generative AI could boost global GDP by up to 7% annually over the next decade.

    But as Leike wrote, "Building smarter-than-human machines is an inherently dangerous endeavor. OpenAI is shouldering an enormous responsibility on behalf of all of humanity." He added, "OpenAI must become a safety-first AGI company," referring to artificial general intelligence.

    Sam Altman, OpenAI's CEO, responded to Leike's thread on X, "He's right, we have a lot more to do; we are committed to doing it."

    All this wouldn't be possible without Nvidia — its powerful graphics chips are what's needed to provide the computational capacity to drive these AI models — and it reports earnings on Wednesday after the bell. If Wall Street struggles for momentum, this $2.3 trillion behemoth will be closely watched to see how much demand there is for more of its powerful chips and if generative AI is more than just another dotcom bubble. 

    — CNBC's Sarah Min, Haden Field, Lisa Kailai Han, Alex Harring, Yun Li, Lora Kolodny and Jordan Novet contributed to this report.

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  • CNBC Daily Open: Wall Street hits record, ‘Thee rate cuts’

    CNBC Daily Open: Wall Street hits record, ‘Thee rate cuts’

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    The Charging Bull is seen on an empty Wall Street on April 20, 2020 in New York City. 

    Eduardo MunozAlvarez | View Press | Getty Images

    This report is from today’s CNBC Daily Open, our new, international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Like what you see? You can subscribe here.

    What you need to know today

    Wall Street hits record high
    The     S&P 500 and the Nasdaq rose to record highs after inflation data came in lower than expected. The Dow Jones Industrial Average jumped 350 points as investors bet the Federal Reserve may cut rates in September. All three major indexes closed at record highs. Tech heavyweights, Nvidia, Apple and Microsoft, all rose. Yields on the benchmark U.S. 10-year Treasury and 2-year Treasury dipped. Oil prices also fell. 

    Inflation eases
    April consumer price index rose 0.3%, slightly less than expected, while on a 12-month basis, inflation increased 3.4% in line with economists’ forecasts. It’s the first time this year that the data did not come in hotter than expected, increasing the prospect of a Fed rate cut sometime later this year, although inflation remains above its 2% target. 

    Meme stock rally fizzles
    Shares of GameStop and AMC slumped more than 18% each amid signs of the meme frenzy petering out. The craze was reignited Monday by the reappearance of “Roaring Kitty” on social media. Before Wednesday, GameStop and AMC were up 179% and 135% this week, respectively. Chart analysts are predicting the “short squeeze” could end badly. 

    Buffett reveals Chubb stake
    Warren Buffett‘s Berkshire Hathaway bought a $6.7 billion stake in Chubb, the Zurich-based insurer, finally revealing its mystery stake in a regulatory filing. As of the end of March, the property and casualty insurer became the ninth-largest holding for Berkshire, which had been keeping this purchase secret for three consecutive quarters.

    Asia up, Japan’s GDP shrinks
    Asia-Pacific markets rose on Thursday after Wall Street hit record highs. Hong Kong’s Hang Seng was the biggest gainer, up 1.6%, as property stocks climbed after a report said the government planned to buy unsold homes from distressed developers. Chinese tech giant Tencent rose 4% after posting better-than-expected earnings. Japan’s Nikkei 225 index jumped 1% as hopes of an interest rate hike faded after the economy contracted in the first quarter. 

    [PRO] Trade tension winners
    As the Biden administration ratchets up tariffs on $18 billion worth of Chinese imports, analysts at Morgan Stanley have picked a handful of U.S. stocks that could benefit from U.S.-China trade tensions.

    The bottom line

    For the first time this year, inflation cooled more than expected, propelling stocks to record highs. Notably, the S&P 500 achieved this feat in just 48 days, compared to 746 days previously. And that was despite an ugly April, which had sent the Dow, S&P 500 and Nasdaq down more than 4% each. 

    Well, the latest data, including April's flat retail sales data, fueled immediate speculation about when the Federal Reserve might lower interest rates.

    Current market sentiment, reflected in Fed Funds Futures trading, now suggests a 75.3% probability of a rate cut at the September Fed meeting, according to the CME FedWatch Tool. This marks an increase from the 44.9% probability indicated on Tuesday.

    However, Meghan Shue, head of investment strategy at Wilmington Trust, predicts three rate cuts this year, starting in July. Excluding lagging components from the Consumer Price Index, such as housing, auto insurance, and medical insurance, Shue argues that inflation is "running at below 2%," the Fed's target.

    "We think this gives the Fed cover to start cutting rates earlier than the market expects," Shue explained to CNBC's "Money Movers." "We think the first cut will come in July and three cuts this year. That plays in nicely for small caps, which are more rate-sensitive, but just in case we are wrong we are also in U.S. large-caps, which to some degree is a little bit of a hedge."

    Despite these expectations, Fed Chair Jerome Powell has reiterated the need for patience, emphasizing that inflation is falling slower than anticipated and that the central bank will maintain its current rates for a longer period.

    Skyler Weinand, Chief Investment Officer at Regan Capital, agrees that a September rate cut is possible but believes the Fed is likely seeking more evidence before making a decision.

    "We're still a far cry from the Fed's desired 2% inflation level, and the economy remains strong, so we'll need a few more weak inflation prints to give the Fed the green light on lowering rates," Weinand stated. "The Federal Reserve is not out of the woods yet."

    — CNBC's Jeff Cox, Pia Singh, Alex Harring, Lisa Kailai Han, Yun Li, Vicky McKeever, Samantha Subin, Scott Schnipper and Hakyung Kim contributed to this report.

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  • CNBC Daily Open: Wall Street hits record highs as rate cut bets

    CNBC Daily Open: Wall Street hits record highs as rate cut bets

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    A trader works during the closing bell at the New York Stock Exchange (NYSE) on March 17, 2020 at Wall Street in New York City. 

    Johannes Eisele | Afp | Getty Images

    This report is from today’s CNBC Daily Open, our new, international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Like what you see? You can subscribe here.

    What you need to know today

    Wall Street hits record high
    The     S&P 500 and the Nasdaq rose to record highs after inflation data came in lower than expected. The Dow Jones Industrial Average jumped 350 points as investors bet the Federal Reserve may cut rates in September. All three major indexes closed at record highs. Tech heavyweights, Nvidia, Apple and Microsoft, all rose. Yields on the benchmark U.S. 10-year Treasury and 2-year Treasury dipped. Oil prices also fell.  

    Inflation eases
    April’s consumer price index rose 0.3%, slightly less than expected, while on a 12-month basis, inflation increased 3.4% in line with economists’ forecasts. It’s the first time this year that the data did not come in hotter than expected, increasing the prospect of a Fed rate cut sometime later this year, although inflation remains above its 2% target. 

    Unsustainable debt
    CEO of JPMorgan Chase Jamie Dimon warned growing U.S. fiscal deficit is unsustainable and could lead to problems in the future if it is not addressed. “America has spent a lot of money. During Covid and after Covid, our deficit is at 6% now. That’s a lot, but obviously that drives growth,” Dimon told Sky News. The federal government has spent $855 billion more than it has collected so far this year, according to the U.S. Treasury Department. 

    Meme stock rally fizzles
    Shares of GameStop and AMC slumped more than 18% each amid signs of the meme frenzy petering out. The craze was reignited Monday by the reappearance of “Roaring Kitty” on social media. Before Wednesday, GameStop and AMC were up 179% and 135% this week, respectively. Chart analysts are predicting the “short squeeze” could end badly. 

    12-second crypto heist
    The Department of Justice indicted two brothers for allegedly stealing $25 million in cryptocurrency within roughly 12 seconds, raising concerns about the “integrity of the blockchain.” Anton Peraire-Bueno, 24, and James Peraire-Bueno, 28, brothers who attended MIT, were arrested on Tuesday for charges of wire fraud and money laundering.

    [PRO] Trade tension winners
    As the Biden administration ratchets up tariffs on $18 billion worth of Chinese imports, analysts at Morgan Stanley have picked a handful of U.S. stocks that could benefit from U.S.-China trade tensions.

    The bottom line

    For the first time this year, inflation cooled more than expected, propelling stocks to record highs. Notably, the S&P 500 achieved this feat in just 48 days, compared to 746 days previously. And that was despite an ugly April, which had sent the Dow, S&P 500 and Nasdaq down more than 4% each. 

    Well, the latest data, including April's flat retail sales data, fueled immediate speculation about when the Federal Reserve might lower interest rates.

    Current market sentiment, reflected in Fed Funds Futures trading, now suggests a 75.3% probability of a rate cut at the September Fed meeting, according to the CME FedWatch Tool. This marks an increase from the 44.9% probability indicated on Tuesday.

    However, Meghan Shue, head of investment strategy at Wilmington Trust, predicts three rate cuts this year, starting in July. Excluding lagging components from the Consumer Price Index, such as housing, auto insurance, and medical insurance, Shue argues that inflation is "running at below 2%," the Fed's target.

    "We think this gives the Fed cover to start cutting rates earlier than the market expects," Shue explained to CNBC's "Money Movers." "We think the first cut will come in July and three cuts this year. That plays in nicely for small caps, which are more rate-sensitive, but just in case we are wrong we are also in U.S. large-caps, which to some degree is a little bit of a hedge."

    Despite these expectations, Fed Chair Jerome Powell has reiterated the need for patience, emphasizing that inflation is falling slower than anticipated and that the central bank will maintain its current rates for a longer period.

    Skyler Weinand, Chief Investment Officer at Regan Capital, agrees that a September rate cut is possible but believes the Fed is likely seeking more evidence before making a decision.

    "We're still a far cry from the Fed's desired 2% inflation level, and the economy remains strong, so we'll need a few more weak inflation prints to give the Fed the green light on lowering rates," Weinand stated. "The Federal Reserve is not out of the woods yet."

    — CNBC's Jeff Cox, Pia Singh, Alex Harring, Lisa Kailai Han, Yun Li, Vicky McKeever, Samantha Subin, Scott Schnipper and Hakyung Kim contributed to this report.

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  • A crucial report Wednesday is expected to show little progress against inflation

    A crucial report Wednesday is expected to show little progress against inflation

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    Gas prices are displayed at a gas station on March 12, 2024 in Chicago, Illinois. 

    Scott Olson | Getty Images

    A closely watched Labor Department report due Wednesday is expected to show that not much progress is being made in the battle to bring down inflation.

    If so, that would be bad news for consumers, market participants and Federal Reserve officials, who are hoping price increases slow enough so that they can start gradually cutting interest rates later this year.

    The consumer price index, which measures costs for a wide-ranging basket of goods and services across the $27.4 trillion U.S. economy, is expected to register increases of 0.3% both for the all-items measure as well as the core yardstick that excludes volatile food and energy.

    On a 12-month basis that would put the inflation rates at 3.4% and 3.7%, respectively, a 0.2 percentage point increase in the headline rate from February, just a 0.1 percentage point decrease for the core rate, and both still a far cry from the central bank’s 2% target.

    “We’re not headed there fast enough or convincing enough, and I think that’s what this report is going to show,” said Dan North, senior economist at Allianz Trade North America.

    The report will be released at 8:30 a.m. ET.

    Progress, but not enough

    North said he expects Fed officials to view the report pretty much the same way, backing up comments they’ve been making for weeks that they need more evidence that inflation is convincingly on its way back to 2% before rate cuts can happen.

    “Moving convincingly toward 2% doesn’t just mean hitting 2% for one month. It means hitting 2% or less for months and months in a row,” North said. “We’re a long way from that, and that’s probably what’s going to show tomorrow as well.”

    To be sure, inflation has come down dramatically from its peak above 9% in June 2022. The Fed enacted 11 interest rate hikes form March 2022 to July 2023 totaling 5.25 percentage points for its benchmark overnight borrowing rate known as the federal funds rate.

    But progress has been slow in the past several months. In fact, headline CPI has barely budged since the central bank stopped hiking, though core, which policymakers consider a better barometer of longer-term trends, has fallen about a percentage point.

    While the Fed watches the CPI and other indicators, it focuses most on the Commerce Department’s personal consumption expenditures index, sometimes referred to as the PCE deflator. That showed headline inflation running at 2.5% and the core rate at 2.8% in February.

    For their part, markets have grown nervous about the state of inflation and how it will affect rate policy. After scoring big gains to start the year, stocks have backed off over the past week or so, which have seen sharp swings as investors tried to make sense of the conflicting signals.

    Earlier this year, traders in the fed funds futures market were pricing in the likelihood that the central bank would start reducing rates in March and continue for as many as seven cuts before the end of 2024. The latest pricing indicates that the cuts won’t start until at least June and not total more than three, assuming quarter-percentage point increments, according to the CME Group’s FedWatch calculations.

    “I don’t see a whole lot here that is going to move things magically the way they want to go,” North said.

    What to watch

    There will be a few key areas to watch in Wednesday’s report.

    Beyond the headline numbers, trends in items such as shelter, airfares and vehicle prices will be important. Those areas have been bellwethers during the current economic cycle, and moves either way could suggest longer-term trends.

    Economists at Goldman Sachs expect outright declines across air travel-related items as well as vehicle sticker prices, and see smaller shelter cost increases, which make up about one-third of the CPI weighting. A New York Fed survey released Monday, however, showed a sharp uptick in expectations for rental costs over the next year, which is bad news for policymakers who frequently have cited decelerating housing costs as the cornerstone to their easing inflation thesis.

    Similarly, the National Federation of Independent Business survey for March, released Tuesday, showed confidence among small businesses at its lowest level in more than 11 years, with owners citing inflation as their top concern.

    “Inflation is cumulative, and that’s why prices still feel high,” North said. “People still can’t believe how high prices are.”

    Gas prices also could play an important role in the CPI release after rising 3.8% in February. Though the gasoline index is relatively unchanged over the past two years, it’s still up more than 70% from April 2020 when the brief Covid-driven recession ended. Food is up about 23% during the same period.

    Don’t miss these stories from CNBC PRO:

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  • How RealPage influences rent prices across the U.S.

    How RealPage influences rent prices across the U.S.

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    Share

    RealPage software is used to set rental prices on 4.5 million housing units in the U.S. A series of lawsuits allege that a group of landlords are sharing sensitive data with RealPage, which then artificially inflates rents. The complaints surface as housing supply in the U.S. lags demand. Some of the defendant landlords report high occupancy within their buildings, alongside strong jobs growth in their operating regions and slow home construction.

    09:56

    Sat, Feb 3 20248:27 AM EST

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  • CNBC Daily Open: Markets in the green, Davos in full swing

    CNBC Daily Open: Markets in the green, Davos in full swing

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    People attend the 54th annual meeting of the World Economic Forum, in Davos, Switzerland, January 18, 2024. 

    Denis Balibouse | Reuters

    This report is from today’s CNBC Daily Open, our new, international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Like what you see? You can subscribe here.

    What you need to know today

    Dow snaps 3 days of declines
    The blue-chip     Dow Jones Industrial Average rose Thursday after falling for three straight days, with the other main indexes also ending higher. Wall Street’s indexes were boosted by a 3.3% rise in shares of Apple after Bank of America upgraded the company to a buy rating. In Asia, chip companies lifted Taiwan stocks, with heavyweight Taiwan Semiconductor Manufacturing Corp surging as much as 6.6%.

    Disney new activist target
    Activist investor Nelson Peltz has his eyes set on Disney. Peltz’s Trian Fund Management along with former Disney chief financial officer Jay Rasulo plan on launching a proxy fight to gain seats on Disney’s board. Peltz said he and Rasulo will be like “Batman and Robin” in an interview with CNBC, if they get elected.

    India makes ripples at Davos
    India is turning up the charm and courting investors at the World Economic Forum in Davos, Switzerland. The world’s most populous country touted three key elements – its growth story, digital infrastructure, and burgeoning startup ecosystem. Big Indian technology firms at the forum also showcased their use of artificial intelligence.

    India’s wealthy, China’s shrinking working population
    India’s affluent population is set to nearly double and drive consumption growth in the world’s fifth-largest economy. In China, official data showed the working age population was shrinking as a share of the total number of people in the country.

    [PRO] AllianceBernstein pick top Asian stocks
    The stocks are “highly ranked on a quantitative basis and our companies where our Bernstein analysts have a strong positive view,” the Wall Street bank wrote in a note. AllianceBernstein picked Asia-Pacific stock and sectors that are “particularly attractive right now.“

    The bottom line

    The week is wrapping up on a brighter note as U.S. markets snap losing streaks, while across the Atlantic headlines from Davos grab attention.

    The Dow Jones Industrial Average closed 0.54% higher, ending three-straight days of declines, while the tech-heavy Nasdaq Composite jumped 1.35%. The benchmark S&P 500 ended 0.88% higher and about 0.33% away from its closing record.

    Wall Street was boosted by Apple after Bank of America upgraded the stock. Semiconductors gained after the world’s largest chipmaker Taiwan Semiconductor Manufacturing Co. posted better than expected fourth-quarter results. U.S.-listed shares of TSMC jumped 9.8%.

    TSMC’s Taiwan-listed stocks jumped more than 6% in Asia trading hours.

    At Davos, India grabbed a few eyeballs as the world’s most populous country touted its growing economic strength.

    “India’s presence is certainly sizable — it has some of the most sought-after spots on the main promenade for tech companies,” Ravi Agrawal, editor-in-chief of Foreign Policy and former CNN India bureau chief, told CNBC. “As China’s economy slows down, India’s relatively rapid growth stands out as a clear opportunity for investors in Davos looking for bright spots.”

    Growing disposable income among Indians is also seen as a significant driver of the country’s consumption story. A Goldman Sachs report last week said around 100 million people in the world’s most populous country will become “affluent” — with annual income exceeding $10,000 — by 2027.

    So far, about 60 million people in India’s economy earn more than $10,000.

    The subject of Donald Trump also gained traction at Davos. The emerging theme was that top U.S. executives had no problem with the idea of Trump returning for a second term, while foreign chief executives feared such a scenario. Those worries mostly stemmed from Trump’s hardline policies including immigration and increased risk of potential conflicts.

    Sam Altman, OpenAI founder and CEO, said artificial intelligence as a sector and the United States as a country are both “going to be fine” regardless of who wins the U.S. presidential election.

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  • CNBC Daily Open: Dow breaks losing streak

    CNBC Daily Open: Dow breaks losing streak

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    Traders work on the floor of the New York Stock Exchange during afternoon trading on January 17, 2024 in New York City. 

    Michael M. Santiago | Getty Images News | Getty Images

    This report is from today’s CNBC Daily Open, our new, international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Like what you see? You can subscribe here.

    What you need to know today

    Dow snaps 3 days of declines
    The blue-chip     Dow Jones Industrial Average rose Thursday after falling for three straight days, with the other main indexes also ending higher. Wall Street’s indexes were boosted by a 3.3% rise in shares of Apple after Bank of America upgraded the company to a buy rating. European shares closed higher as well, but shares of British luxury watch retailer Watches of Switzerland tumbled 36% as it cut its annual guidance.

    Disney new activist target
    Activist investor Nelson Peltz has his eyes set on Disney. Peltz’s Trian Fund Management along with former Disney chief financial officer Jay Rasulo plan on launching a proxy fight to gain seats on Disney’s board. Peltz said he and Rasulo will be like “Batman and Robin” in an interview with CNBC, if they get elected.

    India makes ripples at Davos
    India is turning up the charm and courting investors at the World Economic Forum in Davos, Switzerland. The world’s most populous country touted three key elements – its growth story, digital infrastructure, and burgeoning startup ecosystem. Big Indian technology firms at the forum also showcased their use of artificial intelligence.

    Bitcoin at $40,000
    Bitcoin hit the $40,000 level Thursday amid a broad sell-off in cryptocurrencies. Analysts labeled the drop as “the correction post-ETF launch” as investors cash in. The world’s most popular cryptocurrency had surged ahead of last week’s regulatory approval to trade highly anticipated bitcoin ETFs.

    [PRO] For next week’s earnings
    With earnings season on Wall Street in full swing, the pros highlight a few stocks to watch out for. Analysts boosted their estimates for such companies leading up their quarterly reports, with tech stocks as a standout sector for the S&P 500. Still, overall S&P 500 earnings are expected to drop 6% in the fourth quarter.

    The bottom line

    The week is wrapping up on a brighter note as U.S. markets snap losing streaks, while across the Atlantic headlines from Davos grab attention.

    The Dow Jones Industrial Average closed 0.54% higher, ending three-straight days of declines, while the tech-heavy Nasdaq Composite jumped 1.35%. The benchmark S&P 500 ended 0.88% higher and about 0.33% away from its closing record.

    Wall Street was boosted by Apple after Bank of America upgraded the stock. Semiconductors gained after the world’s largest chipmaker Taiwan Semiconductor Manufacturing Co. posted better than expected fourth-quarter results. U.S.-listed shares of TSMC jumped 9.8%.

    At Davos, India grabbed a few eyeballs as the world’s most populous country touted its growing economic strength.

    “India’s presence is certainly sizable — it has some of the most sought-after spots on the main promenade for tech companies,” Ravi Agrawal, editor-in-chief of Foreign Policy and former CNN India bureau chief, told CNBC. “As China’s economy slows down, India’s relatively rapid growth stands out as a clear opportunity for investors in Davos looking for bright spots.”

    The subject of Donald Trump also gained traction at Davos. The emerging theme was that top U.S. executives had no problem with the idea of Trump returning for a second term, while foreign chief executives feared such a scenario. Those worries mostly stemmed from Trump’s hardline policies including immigration and increased risk of potential conflicts.

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