Dow Jones Today: Major Indexes Poised to Open Lower Following Thursday’s Rally

Aug 9, 2024
dow-jones-today:-major-indexes-poised-to-open-lower-following-thursday’s-rally

Major U.S. stock indexes inched into positive territory Friday morning after opening the session lower, as a volatile week of equities trading gets set to draw to a close. 

The Dow Jones Industrial Average was up 0.1%, while the S&P 500 and the Nasdaq Composite both gained 0.2%. All three indexes closed sharply higher on Thursday, with the S&P 500 and Nasdaq recording their biggest one-day point gains since 2022, as the economic concerns that had roiled the market for the past week subsided after a benign weekly jobless claims report.

Mega-cap tech stocks, which helped power Thursday’s rally, were mostly higher in mid-morning trading, with AI investor favorite Nvidia (NVDA), Microsoft (MSFT), Alphabet (GOOGL), Apple (AAPL) and Meta Platforms (META) all posting modest gains.

Chip stocks were mostly lower, with Intel (INTC), Advanced Micro Devices (AMD) and ON Semiconductor (ON) all moving lower. The iShares Semiconductor ETF (SOXX) was down about 1% after gaining 7% on Thursday.

The yield on 10-year Treasurys slipped to 3.93%, after jumping to around 4% Thursday for the first time in a week. The yield had fallen below 3.7% on Monday, after the July jobs report last Friday showed a surprising increase in the unemployment rate, which boosted expectations among market participants that the Federal Reserve would have to start aggressively cutting interest rates.

Gold futures were up slightly at around $2,470 per ounce on Friday morning, while bitcoin was around $60,00, after surging above $61,000 overnight for the first time in a week.

The calendar for earnings reports and economic data is light on Friday, ahead of the release next week of closely watched inflation numbers and quarterly results from big retailers.

S&P 500, Nasdaq Trying to Avoid 4th Straight Weekly Loss

1 hr 7 min ago

The Nasdaq Composite and S&P 500, despite gains in early trading Friday, remain on pace to record their fourth consecutive week of losses. Over that time (as the chart below shows), the Nasdaq’s losses have been steeper as technology stocks have suffered most during the recent selloff.

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Shares of Salad Seller Sweetgreen Skyrocket

1 hr 34 min ago

Sweetgreen (SG) shares soared on Friday, a day after the salad restaurant chain slashed its loss, boosted sales, and raised its guidance as it expanded locations.

Sweetgreen posted a second-quarter net loss of $14.5 million, nearly half of what it was a year earlier, while adjusted EBITDA of $12.4 million was better than expected. Revenue rose 21% year-over-year to $184.6 million, also more than estimates.

The company attributed the revenue jump primarily to the addition of 36 net new restaurant openings versus the same period in 2023, which contributed $18.2 million.  Same-store sales gained 9%, pulling in $13.9 million.

Sweetgreen shares were up 28% in recent trading, near a 52-week high.

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Bill McColl

Paramount Rises as Company Announces Big Staff Cuts

2 hr 54 min ago

Paramount Global (PARA) wrote down the value of its cable-TV networks by nearly $6 billion, a day after Warner Bros. Discovery (WBD) also took a massive charge, as streaming services like Netflix (NFLX) continue to disrupt traditional networks.

Paramount also announced plans to save at least $500 million in annualized costs, and will cut about 2,000 jobs, or 15% of its U.S. workforce, the owner of CBS, MTV, and Nickelodeon said in its earnings call.

Paramount, whose controlling shareholder, Shari Redstone’s National Amusements, struck a deal after months of talks to merge with Skydance Media last month, also reported an 11% year-over-year decline in second-quarter sales to $6.81 billion.

The company said, however, that it is on track for Paramount+ to reach domestic profitability in 2025.

Shares of the company were up more than 4% in premarket trading.

Nisha Gopalan

Futures Point to Lower Open for Major Indexes

3 hr 39 min ago

Futures tied to the Dow Jones Industrial Average are down 0.1%.

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S&P 500 futures are off 0.2%.

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Nasdaq 100 futures are down 0.4%.

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