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I'm Jessica Edinger. CNBC Wall Street rallying this morning. Treasury Secretary Scott Bessant tells CNBC there may be a deal to open the straight of Hormuz for shipping later today or tomorrow. Stocks soaring out of the gate. The Dow up 678 points being led higher by shares of Caterpillar which are popping 11%. The Dow's up one and a quarter%. First thing, the S&P 500 index is up a half a percent. That's 44 points. The Nasdaq up 276 points, more than 1%. Chipmaker shares are in the green. The Dow opened at a fresh record high this morning. Building on that, here's the Treasury Secretary on CNBC. I think there is a chance we may have a deal today or tomorrow uh to uh o open the straight and you move towards a more
normalized position in this conflict. President Trump is warning Iran that these talks are the last chance to end the war. Reuters reporting that the US has used up virtually all of its long range precision missiles. Here's a take from Lazard's Peter Orzag with CNBC's Andrew Ross Sorcin at the Aspen Economic Strategy Group meeting. Even if there is a deal, it's not clear that it's a sustainable deal. Um, we've been through this before. At least our geopolitical team is skeptical that any deal will be uh enforced. I think we're going to be in a muddle for a while. There are two ways out of the muddle.
The first is that the Chinese intervene and really pressure the Iranians for a real deal. They the Chinese have shown no inclination to do that. And the second is a significant escalation beyond just air, you know, even ground uh forces which we have shown no inclination to do. If you're right though, and we've seen this now over and over again, why is it that the market reacts this way? They hear the president say something in this case. The market wants to believe. Yeah. And should they believe? Not so much. Oil prices were falling but rebounded a bit when Tyrron denied that any negotiations with Iran are happening. US crude oil below $78 a barrel. Oil giant BP doubling its profit
in the last quarter as President Trump blasted big oil. President Trump criticizing Chevron and Exon Mobile for making, in his words, too much money as oil prices have risen throughout the Iran war. On Friday, Chevron reported a nearly 400% increase in second quarter profits. Uh, Exxon's earnings more than doubled. They're making too much money. Okay, based on a shortage, they're making too much money. I don't like it. And I'm I should be the last one to say cuz I'm a big free enterprise guy. Nobody bigger. And you know, we're you're going to see oil when we're finished with Iran. You're going to see the prices drop through the floor. But they made too much money.
Uh, I don't know. President called on oil majors to lower the cost of gasoline, saying it's his words that they better cut the retail price. That's CNBC's Joe Kernan. AAA says the national average for a gallon of regular holding at $49 today. Palunteer shares popping 6% in early trading on strong quarterly results after the closing bell last night. McDonald's with mixed results amid slowing same store sales growth. Some gloomy commentary on the earnings call today about a challenging consumer may be spending less amid high inflation. Caterpillar shares jumping after the company boosted its sales growth forecast for the year. It's making power generation and construction
equipment for data centers. No Powerball winner last night. The jackpot surges above 34 of a billion dollars to 786 million. The next drawing is tomorrow night. Things are rapidly changing in business. You can get more at cnbc.com. I'm Jessica Edinger, CNBC.
