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.


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.
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"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."
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With over a decade of experience writing about the stock market, Karee Venema is the senior investing editor at Kiplinger.com. She joined the publication in April 2021 after 10 years of working as an investing writer and columnist at a local investment research firm. In her previous role, Karee focused primarily on options trading, as well as technical, fundamental and sentiment analysis.
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