S&P 500 and Dow are on pace to reach new closing highs
55 minutes ago
The S&P 500 index soared to an all-time high Wednesday morning, while the Dow Jones Industrial Average is 0.5% shy of a new all-time high and on track to close at its all-time high.
The previous high for the Dow Jones Industrial Average was last Friday at $42,352.75. The S&P 500’s highest closing price was 5,762.48 on September 30th.
So far this year, the S&P 500 and Nasdaq Composite are both up more than 21%, while the Dow is up 12%.
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Jeffries calls Reddit a ‘buy’ on AI strength
1 hour 38 minutes ago
Reddit (RDDT) on Wednesday after Jefferies analysts began coverage of the social media platform and initiated a “buy” rating, citing Google’s search results and its success with AI use cases. ‘s stock price rose.
The company has set a price target of $90 per share, a 27% premium over Tuesday’s closing price, well above the Visible Alpha analyst consensus.
In recent trading Wednesday afternoon, the stock rose another 2% to $72.15. Since the company’s IPO in March, the stock has increased about 43%.
Reddit CEO Steve Huffman speaks during the company’s IPO on the New York Stock Exchange on March 21, 2024.
Michael Nagle/Bloomberg/Getty Images
Reddit’s user growth rate accelerated to 51% in the second quarter, the highest level in four years, the company noted. A big reason for that is the success of a revamped web platform the company debuted last year, which led to “deeper integration into Google Search.” The company’s average revenue per user is actually significantly lower than rivals Pinterest (PINS) and Snapchat (SNAP), which analysts say suggests a “long road to greater monetization.” said.
Reddit’s large library of user posts is a valuable resource for companies developing generative AI models, Jeffries said. The company has established approximately $325 million in contract licensing revenue over the next three years through agreements with Alphabet (GOOGL)’s Google and OpenAI. The company has signaled that it could look to partner with companies like Amazon (AMZN) and Anthropic in the future, which could mean higher-margin revenue streams.
-Andrew Kessel
Boeing leads Dow’s decline as machinists’ strike continues
2 hours 58 minutes ago
Boeing (BA) shares fell Wednesday after the aircraft maker withdrew its contract offer to striking mechanics and S&P Global placed the company’s bond rating on its watch list.
In a memo to employees, Stephanie Pope, Boeing’s chief operating officer and CEO of Boeing Commercial Airplanes, said in a memo to employees that the company’s management is “commonly working with unions.” I have tried my best to find the point.” However, after a third round of negotiations with a federal arbitrator, “the union did not seriously consider our proposal” and instead made “non-negotiable demands” that the company could not meet.
For this reason, the Pope said, “further negotiations are meaningless at this point and our proposal is withdrawn.”
The 33,000 members of the International Association of Machinists and Aerospace Workers resigned last month after the public voted to reject a proposed contract agreement signed days earlier.
S&P Global has warned that the strikes are “increasing the company’s financial risks,” estimating that Boeing will suffer a $10 billion cash outflow this year as a result. The agency placed Boeing’s debt on “CreditWatch with negative impact.” S&P said this reflected “an increased likelihood of a downgrade if the strike continues into the end of the year.”
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Boeing stock has recently fallen 2.4% and is hovering near a two-year low.
-Bill McCall
What’s next for Chinese stocks after the stimulus rally stumbles?
4 hours 30 minutes ago
U.S.-traded Chinese stocks fell sharply on Tuesday and fell again in early trading on Wednesday following disappointing announcements by the government to tone down the enthusiasm that has brought Chinese stocks out of a bear market in recent weeks. did.
The country’s Economic Planning Agency said on Tuesday it would accelerate some investment plans aimed at helping meet its 2024 growth targets, but declined to outline new stimulus measures. Late last month, the Chinese government announced a series of financial stimulus measures, including lowering bank reserve requirements, lowering interest rates, and supporting the stock market.
Most experts agree that more efforts are needed to support the real economy to sustainably turn around China’s sluggish stock market.
“So far, this approach has provided more direct benefits for Chinese stocks than real growth or commodity demand,” V22 Research analysts Michael Herson and Howes Song said in a note Saturday. said. Improving the broader economic outlook requires the government to announce stronger measures to boost consumer spending and support the property sector, they said.
Read the full article here.
-Colin Laidley
Palantir price level to watch as stock prices reach record highs
6 hours 27 minutes ago
Palantir Technologies (PLTR) soared more than 6% to a record high on Tuesday following bullish comments from Ark Invest that said the analytics software provider could have further upside from the AI boom. Recorded.
In recent pre-market trading on Wednesday, shares rose 0.5% to $41.66.
After breaking out of the ascending triangle in early July, the stock has continued to trend upwards, barring a temporary correction in early August, and the rally accelerated last month after the company was included in the S&P 500 Index. did.
Source: TradingView.com.
During the retracement, investors should keep an eye on important support levels near $32.70, $29, and $25.50 on Palantir’s chart.
The bar pattern, which extracts Palantir’s uptrend from May to August of last year and marks its position from its early August lows, predicts a potential bullish price target for the stock at around $55.
Read the full technical analysis here.
-Timothy Smith
Major indexes are expected to start slightly lower
6 hours 48 minutes ago
Futures, which track the Dow Jones Industrial Average, fell less than 0.1%.
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S&P 500 futures also fell less than 0.1%.
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Nasdaq 100 futures fell 0.14%.
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