Stock Market Today: Dow Nabs First-Ever Close Above 40,000
Robinhood stock popped after a double-upgrade from BofA Securities, while Reddit jumped on a new OpenAI deal.
You are now subscribed
Your newsletter sign-up was successful
Want to add more newsletters?
Delivered daily
Kiplinger Today
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more delivered daily. Smart money moves start here.
Sent five days a week
Kiplinger A Step Ahead
Get practical help to make better financial decisions in your everyday life, from spending to savings on top deals.
Delivered daily
Kiplinger Closing Bell
Get today's biggest financial and investing headlines delivered to your inbox every day the U.S. stock market is open.
Sent twice a week
Kiplinger Adviser Intel
Financial pros across the country share best practices and fresh tactics to preserve and grow your wealth.
Delivered weekly
Kiplinger Tax Tips
Trim your federal and state tax bills with practical tax-planning and tax-cutting strategies.
Sent twice a week
Kiplinger Retirement Tips
Your twice-a-week guide to planning and enjoying a financially secure and richly rewarding retirement
Sent bimonthly.
Kiplinger Adviser Angle
Insights for advisers, wealth managers and other financial professionals.
Sent twice a week
Kiplinger Investing Weekly
Your twice-a-week roundup of promising stocks, funds, companies and industries you should consider, ones you should avoid, and why.
Sent weekly for six weeks
Kiplinger Invest for Retirement
Your step-by-step six-part series on how to invest for retirement, from devising a successful strategy to exactly which investments to choose.
Stocks stayed choppy Friday as the main indexes hovered near record highs. Amid a relatively light economic calendar, market participants sifted through single-stock headlines for potential catalysts.
In earnings news, Take-Two Interactive Software (TTWO) gained 1.2% as the company's stronger-than-expected fiscal fourth-quarter bookings offset news that it delayed the release of its Grand Theft Auto VI until the fall of 2024.
Elsewhere, DXC Technology (DXC) plunged 16.9% after the IT services firm gave weaker-than-expected fiscal first-quarter guidance.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
"DXC's turnaround story remains in its early stages, with several new executives recently joining and more planned, and $250 million of additional restructuring costs expected in fiscal 2025," says CFRA Research analyst Brooks Idlet, who maintained a Sell rating on the stock.
The timing is unfortunate, Idlet adds, as the company's current issues will likely hamper its long-term business outlook and cause the company to fall behind on the generative artificial intelligence (GenAI) front.
Robinhood gets a double-upgrade from BofA
In single-stock news, BofA Securities analyst Craig Siegenthaler double-upgraded Robinhood Markets (HOOD) to Buy from Underperform (the equivalent of Sell) and hiked his price target to $24 from $14.
Retail engagement peaked in 2021 and then fell off a cliff amid the Fed's rate hikes and bear market of 2022, Siegenthaler wrote in a note to clients. "However, following the emergence of a new bull market last year, we have monitored a rebound in multiple metrics at Robinhood Markets, and we expect this to continue through 2026," he added.
The bullish analyst note sent HOOD shares soaring 12.2% today, bringing the red-hot financial stock's year-to-date return to 57.5%.
Reddit inks deal with OpenAI
Reddit (RDDT) stock was another big gainer Friday, adding 10.0% after the social media platform disclosed a new deal with artificial intelligence (AI) research firm and ChatGPT parent OpenAI.
Under the terms of the agreement, OpenAI will feature Reddit content in ChatGPT's chatbot. Additionally, OpenAI will become an advertising partner with Reddit.
The deal has the potential to provide $54 million of annual EBITDA (earnings before interest, taxes, depreciation and amortization) for Reddit, says Deutsche Bank analyst Benjamin Black (Buy).
As for the main indexes, the Dow Jones Industrial Average added 0.3% at 40,003 – its first-ever close above the psychologically significant 40K mark – the S&P 500 finished up 0.1% at 5,303, and the Nasdaq Composite slipped 0.1% to 16,685. Still, it was the fifth straight weekly win for the Dow and the fourth for the S&P 500 and Nasdaq.
Fed meeting minutes, Nvidia earnings on deck
Next week's lineup of events has the potential to spark stock market volatility. On the economic front, Wall Street will look for potential rate-cut clues in Wednesday afternoon's release of the minutes from the Fed's May meeting, where the central bank kept interest rates unchanged and Chair Jerome Powell said more rate hikes are "unlikely."
Meanwhile, on the earnings calendar, Nvidia's (NVDA, -2.0%) quarterly results are expected to draw a crowd.
If Nvidia "can continue their enviable, remarkable string of beating estimates, raising guidance, then beating the raised guidance next quarter, that means that the AI trade can and will proceed apace," says Steve Sosnick, chief strategist at Interactive Brokers. "If there is even the slightest sign of weakness, however, much more than that stock alone will suffer."
Related content
- 10 Ways to Save Money at Starbucks
- What Is Stagflation and How Can Investors Prepare?
- Can Stocks Picked by Artificial Intelligence Beat the Market? 3 Stocks to Watch
-
Nasdaq Slides 1.4% on Big Tech Questions: Stock Market TodayPalantir Technologies proves at least one publicly traded company can spend a lot of money on AI and make a lot of money on AI.
-
Should You Do Your Own Taxes This Year or Hire a Pro?Taxes Doing your own taxes isn’t easy, and hiring a tax pro isn’t cheap. Here’s a guide to help you figure out whether to tackle the job on your own or hire a professional.
-
Trump $10B IRS Lawsuit Hits an Already Chaotic 2026 Tax SeasonTax Law A new Trump lawsuit and warnings from a tax-industry watchdog point to an IRS under strain, just as millions of taxpayers begin filing their 2025 returns.
-
Nasdaq Slides 1.4% on Big Tech Questions: Stock Market Today
Palantir Technologies proves at least one publicly traded company can spend a lot of money on AI and make a lot of money on AI.
-
I Met With 100-Plus Advisers to Develop This Road Map for Adopting AIFor financial advisers eager to embrace AI but unsure where to start, this road map will help you integrate the right tools and safeguards into your work.
-
The Referral Revolution: How to Grow Your Business With TrustYou can attract ideal clients by focusing on value and leveraging your current relationships to create a referral-based practice.
-
This Is How You Can Land a Job You'll Love"Work How You Are Wired" leads job seekers on a journey of self-discovery that could help them snag the job of their dreams.
-
Fed Vibes Lift Stocks, Dow Up 515 Points: Stock Market TodayIncoming economic data, including the January jobs report, has been delayed again by another federal government shutdown.
-
65 or Older? Cut Your Tax Bill Before the Clock Runs OutThanks to the OBBBA, you may be able to trim your tax bill by as much as $14,000. But you'll need to act soon, as not all of the provisions are permanent.
-
The Key to a Successful Transition When Selling Your Business: Start the Process Sooner Than You Think You Need ToWay before selling your business, you can align tax strategy, estate planning, family priorities and investment decisions to create flexibility.
-
I'm a Financial Adviser: This Is the $300,000 Social Security Decision Many People Get WrongDeciding when to claim Social Security is a complex, high-stakes decision that shouldn't be based on fear or simple break-even math.
