The Dow Jones Industrial Average (NASDAQ: DJIA) briefly surged past the 40,000 mark for the first time, although it closed slightly lower at 39,869.38. This milestone highlights the strength of a bull market that began in October 2022. Both the S&P 500 and the Nasdaq Composite also reached new records before slipping back by the end of the day.
John Lynch, the chief investment officer at Comerica Wealth Management, remarked, "This achievement is a testament to the powers of capital formation, innovation, profit growth, and economic resilience." His comment underscores the market’s robust performance driven by these fundamental economic factors.
The climb to these new heights reflects investor confidence in the continued growth and resilience of the economy, despite ongoing challenges.
Premarket Movers:
| Company | Stock Change | Reason |
|---|---|---|
| Reddit (NYSE:RDDT) | rose 12% | Partnership with OpenAI to add its content to AI products. |
| Tesla (NASDAQ:TSLA) | rose 0.1% | Plans to use data from China for self-driving technology development. |
| GameStop (NYSE:GME) | fell 10% | Continued to slip after a 30% plummet on Thursday. |
| Boeing (NYSE:BA) | rose 0.2% | Shareholders to vote on CEO David Calhoun's board seat retention. |
| Xpeng (NYSE:XPEV) | fell 1.8% | Announced expansion plans including a SUV and minivan for Hong Kong. |
Figma Announces Tender Offer
Figma, a leading cloud-based design tool company, announced a tender offer allowing current investors, including employees past and present, to sell their shares. This offer values Figma at $12.5 billion, marking a 25% increase from its 2021 fundraising valuation. However, it is below the $20 billion Adobe offered in 2022.
Figma's software is widely used by tech giants such as Google, Oracle, Salesforce, and Microsoft, which spend millions annually on its deployment. The tender offer provides liquidity for investors and employees while reaffirming the company's significant market presence and growth potential.
The offer reflects a strategic move by Figma to remain independent and maintain control over its innovative direction. It also signals confidence in its long-term value and market position, despite previous acquisition attempts by larger companies.
Reddit Shares Spike on OpenAI Deal
Reddit's (NYSE: RDDT) shares soared by 11.5% in aftermarket trading following the announcement of a new partnership with OpenAI. This collaboration will allow OpenAI to access Reddit content for its ChatGPT AI chatbot, while Reddit will integrate new AI features for users and moderators.
Additionally, the two companies will collaborate on advertising initiatives. The partnership comes as OpenAI seeks to enhance its AI models with data from credible sources and faces legal challenges from publishers over copyright issues.
This deal highlights the growing importance of AI in content management and the potential benefits for platforms like Reddit. It also underscores the ongoing efforts by AI companies to secure high-quality data sources for training their models.
Boeing Shareholders to Vote on CEO's Board Status
Boeing's (NYSE: BA) shareholders are preparing to vote on whether outgoing CEO David Calhoun should retain his board seat. Calhoun plans to retire at the end of the year, and the company has already begun searching for his replacement.
Boeing's reputation for safety took a hit earlier this year due to a mid-air breach on a 737 Max jet. This incident has contributed to a significant decline in the company's stock, which has lost more than 25% of its value in 2024.
This vote could shape Boeing's future leadership and strategic direction.
Oil Prices on Track for Weekly Gains
Crude oil prices rose on Friday, positioning them for weekly gains driven by signs of improving demand and easing inflation in the U.S., the world's largest oil consumer.
By early morning, U.S. crude futures were up 0.3% at $79.50 per barrel, while Brent crude climbed 0.5% to $83.66 a barrel. Both contracts are set to post weekly gains of over 1%.
The oil market has benefited from a softer-than-expected inflation report, increasing the likelihood of lower interest rates. This prospect could boost global economic activity and, consequently, oil demand.
Additionally, a drop in U.S. oil inventories has fueled optimism about improving demand, especially with the travel-heavy summer season approaching. These factors combined have provided a positive outlook for the oil market in the near term.
