June 22, 2024

Brighton Journal

Complete News World

Stocks are treading water with Dow Jones aiming to reach 40,000

Stocks are treading water with Dow Jones aiming to reach 40,000

US stocks were little changed on Friday afternoon with Wall Street pausing towards bullish milestones as investors hesitated about the prospects of an interest rate cut.

The Dow Jones Industrial Average (^DJI) held steady after touching the key 40,000 level for the first time during Thursday’s trading. The S&P 500 (^GSPC) moved just above the flat line, while the tech-heavy Nasdaq Composite (^IXIC) fell just below it, but all metrics were on track for weekly gains.

Stocks rose sharply following comments from Federal Reserve officials who warned that interest rates are likely to remain at historic highs for a while. This dampened enthusiasm for the prospect of interest rate cuts in September, which had been lifted by encouraging inflation data.

Read more: How does the labor market affect inflation?

Friday’s light economic and corporate docket leaves just a few jumping-off points for the Dow Jones to make another attempt at crossing the major juncture, while the S&P 500 and Nasdaq have new records within reach.

This highlights the appearances of Fed officials. US Federal Reserve Governor Michelle Bowman on Friday reiterated her view that the central bank has made no progress this year in curbing inflation, US Federal Reserve Governor Michelle Bowman said in a speech in Nashville, Tennessee. Bowman said she is willing to raise interest rates again at a future meeting if incoming data shows a further slowdown.

Federal Reserve Chairman Jerome Powell was scheduled to deliver his remarks at Georgetown University Law School’s graduation ceremony on Sunday, but will now speak via a pre-recorded video, after testing positive for the coronavirus, a central bank spokesman said on Friday.

In individual moves, shares of Reddit (RDDT) jumped 13%, not far from its highest close of $65.11 in March. The social media platform has signed a partnership with OpenAI which will see ChatGPT integrate content from its forums.

Meanwhile, shares of GameStop (GME) fell more than 25% after the gaming retailer said it expects first-quarter sales to decline as shoppers turn to online outlets. Shares in meme stocks soared at the start of the week in an echo of 2021’s madness, but the rise has turned into a decline in recent days.

He lives8 updates

  • Stocks trended in afternoon trading

    Here are some of the stocks topping Yahoo Finance’s trending trends page during Friday afternoon.

    GameStop (GME): Shares of the video game retailer sank more than 25% on Friday morning after the company filed to sell 45 million new shares of common stock and Preliminary financial results were released Which revealed that sales fell sharply from the previous year in the last quarter.

    Take-Two Interactive (TTWO): The video game developer that owns publishers Rockstar Games and 2k rose 1% in afternoon trading after revealing that the long-awaited Grand Theft VI game will be released in the fall of 2025. The company also revealed that it expects that Net bookings for the fiscal year stand at $5.55 billion to $5.65 billion, down from the $8 billion previously expected, though some analysts said the updated launch date for the main game gives investors new clarity.

    Cracker Barrel: (CBRL) Shares of the Southern-themed restaurant and gift shop fell 12% after the company cut its dividend plans by nearly 80%. The announcement comes as the chain shifts its focus to upgrading the brand and physical locations.

    Reddit (RDDT): The forum-based social network gained more than 14% during morning trade following news of a partnership with OpenAI, the AI ​​company behind the popular ChatGPT. As part of the deal, OpenAI will become an advertising partner of Reddit and will give Reddit the ability to use OpenAI’s technology to build tools and features. In return, ChatGPT will integrate Reddit content into its system.

  • Stocks are treading water in afternoon trading

    The major indexes are back to where they started in Friday afternoon trading, as Wall Street’s attempt to push the Dow Jones past 40,000 points stalled, at least momentarily.

    The Dow Jones Industrial Average (^DJI) settled just below the milestone after touching the level for the first time during Thursday trading. The S&P 500 (^GSPC) and Nasdaq Composite (^IXIC) fell just below the flat line, but all metrics were on track for weekly gains.

  • Federal Reserve Chairman Jay Powell has tested positive for COVID-19

    A central bank spokesperson revealed on Friday that Federal Reserve Chairman Jerome Powell has tested positive for COVID-19.

    The spokesman said Powell received the diagnosis on Friday, saying he tested positive “late yesterday” and is experiencing symptoms.

    The Fed indicated that Powell will no longer attend Georgetown Law School’s graduation ceremony, where he was scheduled to deliver his remarks in person on Sunday. Instead he will do so via a pre-recorded video.

    “Following Centers for Disease Control and Prevention guidelines, he is staying away from others and working at home,” the Fed said in a statement. Powell has tested positive for the virus before, in 2023.

    WASHINGTON, DC - MAY 10: Federal Reserve Chairman Jerome Powell departs after the conclusion of the Treasury Department's Financial Stability Oversight Board meeting on May 10, 2024 in Washington, DC.  The Council received an update from the Financial Market Facilities Committee and an update on market developments related to corporate credit, as well as a presentation and vote on a report on non-bank mortgage servicing.  (Photo by Kent Nishimura/Getty Images)WASHINGTON, DC - MAY 10: Federal Reserve Chairman Jerome Powell departs after the conclusion of the Treasury Department's Financial Stability Oversight Board meeting on May 10, 2024 in Washington, DC.  The Council received an update from the Financial Market Facilities Committee and an update on market developments related to corporate credit, as well as a presentation and vote on a report on non-bank mortgage servicing.  (Photo by Kent Nishimura/Getty Images)

    Federal Reserve Chairman Jerome Powell departs after the conclusion of the Treasury Department’s Financial Stability Oversight Board meeting on May 10, 2024 in Washington, DC. (Photo by Kent Nishimura/Getty Images) (Kent Nishimura via Getty Images)

  • GameStop stock fell during the move to issue stock

    The mini meme stock rally of 2024 is running out of steam

    GameStop (GME) stock fell as much as 30% on Friday after the company filed to sell 45 million new shares of common stock and Preliminary financial results were released Which showed a sharp decline in sales compared to the same period last year, Yahoo Finance’s Josh Schaeffer reports.

    The video game retailer said it expects sales to range between $872 million and $892 million in the fiscal first quarter, down from $1.24 billion in the same period a year earlier. Wall Street was expecting revenue of just over $1 billion for the quarter, according to data from Bloomberg.

    With Friday’s decline, the stock is now lower than where it opened Monday morning after Keith Gill, also known as “Roaring Kitty,” on X, formerly Twitter, resurfaced over the weekend. Gill’s bullish case for GameStop ignited the meme’s stock rally again in 2021, and the stock had more than doubled by Tuesday morning.

    “I don’t see anything in the pre-announcement that tells me the business is starting to turn around,” Wedbush managing director Michael Butcher told Yahoo Finance. “But at least they’ll make enough money to last another three or four years if they actually keep failing and try to find a new strategy.”

  • Reddit stock rose after dealing with OpenAI

    By signing a major partnership with OpenAI, the AI ​​company behind ChatGPT, Reddit (RDDT) has scored a major victory in its plans to sell its unique archive of posts to companies eager for large troves of content to train large language models (LLMs).

    On Friday, shares of the forum-based social media company rose more than 14%, as investors cheered the deal. The partnership will bring Reddit content into new ChatGPT and OpenAI products, drawing on Reddit data to give the chatbot real-time content on trending topics.

    In return, Reddit will get AI-powered features for Redditors’ editors and moderators, the company said in an announcement on Thursday. OpenAI will also become an advertising partner on Reddit, boosting the company’s main revenue stream.

    “Reddit has become one of the internet’s largest open archives of authentic, relevant, and always up-to-date human conversations about anything and everything. Its inclusion in ChatGPT supports our belief in a connected internet, and helps people find… “More of what they’re looking for, and helps new audiences find community on Reddit.”

    The Reddit deal comes as other major media companies strike deals with AI developers, trading their digital language corpora for guaranteed revenue.

  • Stocks are trending in morning trading

    Here are some of the stocks topping Yahoo Finance’s ETFs page during morning trading on Friday.

    GameStop (GME): Shares of the video game retailer sank more than 25% on Friday morning after the company filed to sell 45 million new shares of common stock and Preliminary financial results were released Which revealed that sales fell sharply from the previous year in the last quarter.

    Reddit (RDDT): The forum-based social network gained more than 14% during morning trade following news of a partnership with OpenAI, the AI ​​company behind the popular ChatGPT. As part of the deal, OpenAI will become an advertising partner of Reddit and will give Reddit the ability to use OpenAI’s technology to build tools and features. In return, ChatGPT will integrate Reddit content into its system.

    Robin Hood (Capture): The financial services company popular with retail stock traders rose 6% on Friday morning after a double upgrade from Bank of America, from underperform to buy. Analysts pointed to a rebound in retail participation and a broader trend toward mobile trading that the startup will benefit from.

    Cracker Barrel (CBRL): Shares of the restaurant chain fell nearly 15% after the company cut its dividend plans by nearly 80%. The announcement comes as the Southern-themed restaurant and gift store shifts its focus to upgrading its brand and physical locations.

  • Stocks were little changed with the Dow Jones hitting 40,000

    The major indexes did not move much at the open on Friday as Wall Street prepared for the Dow Jones to make another attempt to surpass the key 40,000 mark.

    The Dow Jones Industrial Average (^DJI) held steady after touching the level for the first time during Thursday’s trading. The S&P 500 (^GSPC) rose 0.1% while the Nasdaq Composite (^IXIC) rose 0.1% as well, with all metrics on track for a positive ending to the week.

  • Reddit stock emerges from pre-market on OpenAI deal

    Reddit stock (RDDT) rose 14% pre-market under a new deal with OpenAI where OpenAI will have access to Reddit data to help build its models.

    This deal should come as no surprise to Reddit investors, as the company recently struck a similar deal with Alphabet (GOOGL). Steve Huffman, co-founder and CEO of Reddit, told me last week that more deals like this are likely to be part of the platform’s reinvention.

    Look for a new UI later this year.

    Watch below.