Stock prices remained volatile on Friday as major indexes hovered near record highs. With a relatively light economic calendar, market participants scanned individual stock headlines for potential catalysts.
In financial news, Take-Two Interactive Software (TTWO) rose 1.2% as the company’s better-than-expected fourth-quarter results offset news of poor results. The release of Grand Theft Auto VI has been postponed. Until fall of 2024.
In other places, DXC technology (DXC) plunged 16.9% after the IT services company reported lower-than-expected first-quarter earnings guidance.
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“DXC’s turnaround story is still in its early stages, with several new executives recently added, more planned, and an expected additional restructuring charge of $250 million in fiscal 2025,” CFRA Research said. said the analyst. Brooks Idletmaintained a “sell” rating on the stock.
Idlet added that the timing is unfortunate, as the company’s current issues hamper its long-term business prospects and will likely cause it to fall behind in the field of generative artificial intelligence (GenAI).
Robinhood gets double upgrade from BofA
For individual stock news, BofA Securities analysts Craig Siegenthaler double upgrade robinhood market (HOOD) was selected as Buy from Underperform (equivalent to Sell) and raised the price target from $14 to $24.
Retail engagement peaked in 2021 but then fell off a cliff due to Fed rate hikes and monetary policy. bear market In 2022, Siegenthaler wrote in a note to clients: “However, with the advent of new bull market “Over the last year, we have monitored a recovery in multiple Robinhood Markets metrics, which we expect to continue through 2026,” he added.
HOOD stock soared 12.2% today after a bullish analyst note, bringing the popular financial stock’s year-to-date return to 57.5%.
Reddit Inc. deals with OpenAI
reddit RDDT stock rose even more strongly on Friday, rising 10.0%, after the social media platform revealed a new deal with OpenAI, an artificial intelligence (AI) research firm and ChatGPT’s parent company.
Under the terms of the agreement, OpenAI will feature Reddit content in ChatGPT’s chatbot. Additionally, OpenAI will be an advertising partner of Reddit.
The deal could generate $54 million in annual EBITDA (earnings before interest, taxes, depreciation and amortization) for Reddit, according to Deutsche Bank analysts. benjamin black (buy).
The main indicators are: Dow Jones Industrial Average Added 0.3% at 40,003 – first ever closing price above the psychologically important 40,000 mark – S&P500 The number of cases ended at 5,303, an increase of 0.1%. Nasdaq Composite It fell 0.1% to 16,685. Still, it was the fifth consecutive week of wins for the Dow, and the fourth consecutive week of wins for the S&P 500 and Nasdaq.
Fed meeting minutes, NVIDIA financial results announcement
A series of events next week could cause stock market fluctuations. On the economic front, Wall Street will look for the possibility of a rate cut in the May Fed meeting minutes to be released Wednesday afternoon, where the central bank will leave rates unchanged and Chairman Jerome Powell said further rate hikes are “not likely.” Not likely.”
on the other hand, earnings calendar, Nvidia’s (NVDA, -2.0%)’s quarterly results are expected to draw a large crowd.
If Nvidia can continue its “enviable and surprising series of better-than-expected results, raise its guidance, and beat the raised guidance in the next quarter,” that means AI trade could move forward rapidly. “It means moving forward,” he said. Steve Sosnick, Chief Strategist at Interactive Brokers. “But if there’s any sign of weakness, it’s not just the stocks that are affected.”
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