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This report comes from today’s CNBC Daily Open, our new international markets newsletter. CNBC Daily Open keeps investors updated on everything they need to know, no matter where they are. Like what you see?You can subscribe here.
What you need to know today
Dow Jones index breaks through 40,000 mark
this Dow Jones Industrial Average briefly Breaking through the 40,000 mark It first appeared before closing lower. The Dow has been in a bull market since October 2022 due to the economy’s resilience. After losing momentum in April, it rebounded on hopes of a rate cut and a strong earnings season.this S&P 500 Index and Nasdaq Also hit an all-time high, but ended in negative territory. The Dow is up nearly 6% in 2024, while the Nasdaq and S&P 500 are up 11% each. Treasury bond yield and oil price Also increased.
Attract wealthy clients
Walmartthe largest discount retailer, beat quarterly earnings Revenue expectations are rising as more high-income customers seek bargains. “We have customers who are coming to us more frequently than before, and we have new customers that we haven’t had traditionally, and they are coming into Walmart whether it’s online or virtual,” Chief Financial Officer John David Rainey told CNBC. store, or one of our physical stores. Walmart shares closed up 7% on Thursday, hitting a record high.
poor performance
sportswear company Under Armor plans to lay off employees As part of a restructuring plan, the company reported a 96% drop in fourth-quarter profit. The company said sales in North America, its biggest market, were down 10% and warned it could be worse. Under ArmorShares fell 1.3%.
Figma employees cash in
Figma will allow past and present investors Employees sell shares The cloud-based design tools company was valued at $12.5 billion in a tender offer. This valuation represents a 25% increase from 2021 and is still lower than AdAdobe’s failed $20 billion acquisition bid in 2022. Kleiner Perkins.
The meme retreat continues
game station and aviation medical center continue Second day of retreat Following speculative rally following re-emergence “Roaring Kitten” on social media earlier this week. GameStop and AMC fell 30% and 15% respectively on Thursday. But they are still up more than 60% this week.
(PRO) New S&P 500 Index Target
Wall Street’s recent all-time highs prompted market analysts to revise their year-end price targets for the S&P 500. CNBC’s Bob Pisani Collected forecasts Insights from leading strategists on where the market may be heading.
bottom line
JPMorgan CEO Jamie Dimon this week Warning to policymakers The United States needs to address its growing fiscal deficit, the result of recent economic stimulus measures and tax cuts. Dimon said ignoring the 6% deficit could lead to more serious economic problems in the future.
So far this fiscal year, the government has spent $855 billion more than it has collected in taxes, according to U.S. statistics Ministry of Finance. In fiscal year 2023, government deficit spending will be $1.7 trillion.
In some cases, U.S. spending hits record highs $886 billion for defense. It would send an additional $95 billion to Ukraine, Israel, Taiwan and the Indo-Pacific region.Past Wars in Iraq and Afghanistan cost $2.3 trillionThe national debt has ballooned to $34.53 trillion.
Granted, that’s a scary number, but comparing it to gross domestic product gives us a better idea of Washington’s ability to pay its debt. At 123% of GDP, it compares favorably with Japan ($9.2 trillion, or 263%), Greece and Italy. Of course, this depends on whether the investor is willing to borrow money. There’s no sign they won’t extend credit to the world’s largest economy, but that could change.
But as Dimon said, all this spending is driving up inflation to some extent.
Wednesday’s consumer price index It shows that inflation has cooled down in April. However, its impact on the real economy is far-reaching.
Walmart, the largest retailer, has seen more wealthy clients Shop at its stores. Walmart Chief Financial Officer John David Rainey noted in an interview with CNBC that “wallets are still stretched thin” and shoppers are prioritizing essentials such as food and health.
This shift in consumer behavior highlights the impact of rising prices and growing debt burdens. Credit card debt, in particular, has soared to a staggering $1.12 trillion. Delinquency rates rise. The trend is particularly concerning for young people who are already struggling with rent, student loans and car payments.
Dimon acknowledged that government spending is good for the economy, but he also believes that government spending needs to be checked. Otherwise, inflationary pressures will erode consumer spending, savings and wages. and the government’s ability to repay its debt.
—CNBC’s Jeff Cox, Lisa Kailia Han, Tanaya Macheel, Sam Meredith, Hakyung Kim, Andrea Miller, Shawn Baldwin, Jessica Dickler and Melissa Repko contributed to this report.
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