CNBC Business News Update Market Midday: Stocks Higher, Jobless Claims Soar, GM To Hold Prices Steady Amid Tariffs For Now 5/1/25
May 1, 2025
The markets enjoyed a positive start to May, driven by strong quarterly results from giants like Microsoft and Meta. However, rising jobless claims raise red flags for the labor market. McDonald's faces challenges, while General Motors is holding steady on prices despite looming tariffs. The international travel sector also encounters hurdles, sparking discussions about consumer spending patterns.
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Jobless Claims Signal Labor Market Stress
- Jobless claims spiked unexpectedly, hinting at labor market weaknesses.
- Rising continuing claims suggest it's tougher for people to find new jobs quickly.
Consumers Curb Spending Cautiously
- McDonald's biggest same-store sales drop in five years signals consumer caution.
- Even promotions and value meals aren't enough to boost spending robustly.
GM Tackles Tariffs Without Price Hikes
- GM expects $4-$5 billion tariff costs but plans to offset them.
- CEO Barra says current vehicle pricing is stable with no immediate increases planned.