Dow Stays Above 40K This Time

Reddit jumps 10% after deal, while GameStop and AMC Entertainment drop
By Newser Editors and Wire Services
Posted May 17, 2024 3:50 PM CDT
Dow Stays Above 40K This Time
A heart is displayed on the door of a gift shop across from the New York Stock Exchange in New York on Thursday, when the Dow topped 40,000 for the first time.   (AP Photo/Peter Morgan)

The Dow finished a day above the 40,000 level for the first time on Friday as US stock indexes drifted around their records while closing out their latest winning week, the AP reports.

  • The Dow rose 134.21 points, or 0.3%, to 40,003.59, a day after briefly topping 40,000.
  • The S&P 500 rose 6.17 points, or 0.1%, to 5,303.27. It finished 0.1% shy of its record set on Wednesday and closed out a fourth straight week of gains.
  • The Nasdaq fell 12.35 points, or 0.1%, to 16,685.97.

The Wall Street indexes have been climbing since the autumn of 2022 as the US economy and corporate profits have managed to hold up despite high inflation, the punishing effects of high interest rates, and worries about a recession that seemed inevitable but hasn't arrived. Despite the placid movements for indexes Friday, some feverish action was roiling underneath. Reddit jumped 10% after announcing a partnership in which OpenAI will bring the social-media company's content to ChatGPT and become an advertising partner.

On the losing end were GameStop and AMC Entertainment, which gave back more of their massive gains from the beginning of the week. GameStop dropped 19.7% to trim its gain for the week to 27.2% after it said it expects to report a loss of up to $37 million for the three months through May 4. It also said it could sell up to 45 million shares of stock in order to raise cash. Such moves can dilute the holdings of current shareholders, and it followed a similar move by AMC Entertainment. After the movie theater chain's stock price also got caught up in a rocket ride upward, AMC said earlier this week it would issue nearly 23.3 million shares of stock to wipe out some debt.

(More stock market stories.)

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