S&P 500 Hits 5,000 for the First Time, Dow Jones Sets New Record
The stock market has reached new heights as the S&P 500 crossed the 5,000 mark for the first time in history. Although it closed just below that milestone at 4,997.91, it still set a new record. The Dow Jones Industrial Average also achieved a new high, closing at 38,726.33. While these achievements are significant, the gains for each of the major indexes were relatively modest, with the S&P up by 0.06%, the Dow up by 0.13%, and the Nasdaq Composite up by 0.24%. However, all three indexes remain in positive territory for the week leading into the final trading session.
Pinterest and PepsiCo, two major companies, released their earnings reports within the past 18 hours. Pinterest reported disappointing revenue and weaker-than-expected guidance for the fourth quarter. Initially, the stock plummeted in after-hours trading but managed to recover slightly after announcing a new partnership with Google. On the other hand, PepsiCo’s Q4 results exceeded earnings estimates but revealed a slight year-over-year revenue decline. Higher prices helped boost organic revenue but led to a decrease in volume as consumers became more price-conscious.
In a move to compete with OpenAI’s ChatGPT, Google has rebranded its artificial intelligence chatbot from Bard to Gemini. The chatbot is now available in a dedicated app for Android users and can be accessed via the Google app on iOS for iPhone users. Additionally, Google introduced a subscription option for its most powerful AI model, Gemini Ultra 1.0, priced at $19.99 per month.
Cocoa prices have reached all-time highs due to unfavorable weather conditions that have affected crop yields in West Africa, where three-quarters of the world’s cocoa production originates. The El Nino weather phenomenon has caused drier temperatures in countries like Ghana and Ivory Coast, resulting in a significant decrease in cocoa production. As a result, cocoa futures hit a record intraday high of $5,874 per metric ton, marking a nearly 40% increase since the beginning of the year.
Delta Air Lines is addressing the issue of overcrowding in airport lounges by introducing a “premium” tier of lounges. The first location will be a 38,000-square-foot lounge at New York’s John F. Kennedy International Airport, complete with a full-service restaurant and “wellness” areas. This move comes as more travelers accumulate credit card rewards, flight upgrades, and status, leading to increased demand for lounge access. Delta plans to open similar high-end lounges in Boston and Los Angeles later this year, although the criteria for entry into these top-tier lounges have not been disclosed.
As the stock market reaches new milestones and companies release their earnings reports, investors are closely monitoring these developments. Additionally, the rebranding of Google’s chatbot, the surge in cocoa prices, and Delta’s introduction of premium airport lounges are all noteworthy events shaping various industries. With the market remaining in positive territory for the week, traders are eagerly awaiting the final trading session to see how these trends will unfold.