The Dow Jones Industrial Average closed above 40,000 for the first time, gaining 0.3%. The S&P 500 rose 0.1%, while the Nasdaq Composite dipped slightly by 0.1%.
Today's trading was limited, with major indices moving within narrow ranges. Advancing issues outnumbered declining issues on the NYSE, while the opposite was true for the Nasdaq.
S&P 500 sector performance was mixed. Energy was the standout, closing 1.4% higher. No other sector moved more than 0.9% in either direction.
The consumer discretionary sector saw gains, driven by Tesla (TSLA, Financial) rising 1.5% to $177.46 after announcing plans to cut approximately 600 positions in California. Amazon.com (AMZN, Financial) also closed higher, up 0.6% to $184.70.
Treasuries ended with losses, which tempered buying in the stock market. The 10-year note yield rose four basis points to 4.42%, and the 2-year note yield increased three basis points to 4.82%.
Despite today's losses, Treasuries posted solid gains for the week. The 10-year note yield was up eight basis points, while the 2-year note yield was down five basis points for the week.
- S&P 500: +11.2% YTD
- Nasdaq Composite: +11.2% YTD
- S&P Midcap 400: +8.4% YTD
- Dow Jones Industrial Average: +6.1% YTD
- Russell 2000: +3.4% YTD
Today's economic data:
- April Leading Economic Index: -0.6% (consensus: -0.3%; prior: -0.3%)
No significant U.S. economic data is expected on Monday.
Guru Stock Picks
Robert Karr has made the following transactions:
- Add in SHLS by 42.02%
Today's News
Faraday Future Intelligent Electric (FFIE, Financial) saw a massive premarket jump of 67% on Friday, following a 479% surge on Thursday. The electric vehicle maker's stock traded at $2.76, up significantly from $0.04 just a week ago, marking a one-week 4000% return. This extraordinary rise has made it the highest return for any stock listed on the NYSE or Nasdaq. Increased Google searches for "Faraday Future" and "$FFIE" suggest growing retail interest in this apparent short squeeze rally.
Attention is turning to Nvidia (NVDA, Financial) as it prepares to report its quarterly results next week. The chip giant has been a leader in the AI race, and its performance will serve as a key indicator for the AI sector's momentum. Nvidia's results will be closely watched by investors and analysts alike, considering its significant role in the AI industry.
Microsoft (MSFT, Financial) announced plans to offer its cloud computing customers Advanced Micro Devices' (AMD, Financial) AI chips, aiming to compete with Nvidia's (NVDA, Financial) dominant H100 line of GPUs. This new offering will be available through Microsoft's Azure cloud service, providing an alternative to Nvidia's high-demand chips. Microsoft will reveal more details at its upcoming Build developer conference.
GameStop (GME, Financial) disclosed an open market sales agreement with Jefferies to sell up to 45 million shares. The retailer plans to use the proceeds for general corporate purposes, including acquisitions and investments. GameStop's stock fell 23.45% in premarket trading on Friday, following a 30% decline, as the company also filed a mixed shelf offering with the SEC.
CoreWeave, a cloud service startup backed by Nvidia (NVDA, Financial), raised $7.5 billion in debt funding from investors including Blackstone (BX), Carlyle Group (CG), and BlackRock (BLK). The new capital will be used to purchase AI chips and associated equipment, further capitalizing on the AI boom. This funding round values CoreWeave at $19 billion, a significant increase from $7 billion in December.
Apple (AAPL, Financial) is reportedly developing a slimmer version of its iPhone, expected to be released alongside the iPhone 17 in September 2025. The new model, internally dubbed D23, will feature a major redesign with a screen size similar to the Pro Max. This move aims to drive demand for iPhones, which saw an 11% decline in Apple's latest quarterly results.
Shares of PDD Holdings (PDD, Financial) rose 3% after UBS raised its price target on the Chinese tech company, citing potential growth for its Temu e-commerce platform. Temu, known for its low prices and wide product selection, is expected to have a significant growth profile despite geopolitical risks. UBS analyst Kenneth Fong maintained a Buy rating and increased the price target to $248, implying a 67% upside.
Dividend activity this week included increases from Northrop Grumman (NOC, Financial) and Chubb (CB, Financial). Northrop Grumman raised its dividend by 10.2% to $2.06 per share, while Chubb increased its dividend by 5.8% to $0.91 per share. Upcoming ex-dividend dates include industry players like Johnson & Johnson (JNJ, Financial) and Yum! Brands (YUM, Financial).
Reddit (RDDT) surged 14% after announcing a partnership with Microsoft-backed OpenAI (MSFT, Financial). This collaboration will integrate Reddit content with ChatGPT, allowing OpenAI to learn from Reddit's Data API in real time. New AI-powered features for Reddit users and moderators are also part of the deal, with OpenAI joining Reddit as an advertising partner.
GameStop (GME, Financial) reported preliminary Q1 results, expecting net sales between $872 million and $892 million, below the consensus expectation of $1.05 billion. The retailer anticipates a net loss of $27 million to $37 million for the quarter. GameStop's cash position at the end of the quarter was between $1.073 billion and $1.093 billion.
GuruFocus Stock Analysis
- Why Palantir's Rally Deserves to Continue by Bernard Zambonin
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