Market Midday: Stocks Higher, Chipmakers Rise, Boeing Shares Tank • 10/27/26

0:00C &C Business News Update. I'm Jessica Ettinger. Major average is in the green this afternoon on Wall Street. The Dow is up 38 points. Caterpillar shares leading at higher. They're up almost 3 percent. The S &P 500 index up 50 points. That's a half percent. The Nasdaq is now up 339 points. One and a quarter percent. Chipmaker shares mostly in the green. AMD up 5 percent. Cerebris Systems up 8 percent today. Boeing shares are tanking, going the other way. They're down almost 10 percent after commentary on the Boeing earnings call. Here's CNBC's Carl Quintanilla with more. Management makes some comments on the earnings call about the pace of 737 max production.

0:45We talked with Kelly Ortberg. Our Philebo asked about when Ortberg expected to get to 47 max planes a month and why the pace of production was taking longer than expected. We're working on that. We're trying to stabilize. I know everybody wants us to go faster, but we're going to do it right. Make sure that the production system is stable. We're delivering high-quality, safe aircraft. And so I expect that stabilization period will last the balance of this year into early next year. Boeing's pacing for the worst day since the tariff announcements in April of 25. JetBlue shares are soaring today, up 20 percent after tanking yesterday.

1:21The airline says it has a plan for more profit, even with an 85 percent spike in jet fuel prices. Diesel, jet fuel, all of these costs have been higher for companies. Diesel in the U.S. is still sitting at more than six dollars a gallon for truckers. Here's Barclays. Brandon Oglensky with CNBC's Joe Kernan on when the higher prices may hit the American consumer, their spending and the entire U.S. economy. Jet fuel doubled. Diesel's up, what, 50 or 60 percent. The freight companies just pass out right on to customers. The airlines have been raising fares. So on the freight side, a lot of this is business to business transactions.

2:00So there's fuel surcharges on the business. But that's what's feeding into fears of like broader slowdown in economic spending. And look, I think there's maybe a negative bias in Wall Street economist's outlooks right now just saying that, hey, at some point, fuel prices and then fuel surcharges that are passed along through the supply chain end up crowding out spending, which just hasn't happened yet because we're at full employment. So we're in a pretty strong economy that I think to this point has really absorbed the price shock. But we haven't been at these record all time levels for all that long.

2:30New home sales came in lower for September as mortgage rates climbed. It's down 5.3 % year over year. Now, this count is based on signed contracts. So people out shopping in September when, of course, we all know mortgage rates shot up. We started the month around 6.8 % on the 30-year fix and went all the way up to 7.5%. That really hit the buyers out there. We know from home builder confidence, we saw that drop to a 14-year low. And we also know from housing starts, They also came down in September. The sale price in September median was$400 ,400. This is down 3.9 % year over year. We've seen the builders cutting prices.

3:14We know that that is influencing their margins, really squeezing them, also because they're doing mortgage rate buy-downs. That's CNBC's Diana Olick. No Powerball winner last night. Tomorrow night's jackpot, now$716 million. Jessica Ettinger, CNBC. gas prices to housing prices, from government spending to consumer spending, from the AI boom to the data center backlash. How will this election hit your pocketbook and your portfolio? Continuing coverage, the economy election, CNBC. This episode is brought to you by Schwab Market Update, an original podcast from Charles Schwab. Schwab Market Update, an original podcast from Charles Schwab, provides an information-packed daily market preview on stock updates, U.S.

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