News
5 things you should know before the stock market opens on Friday, May 24
- The Dow Jones had its worst day of the year so far.
- Ether ETFs could be on the way soon following an SEC rule change.
- The DOJ has filed suit to break up Live Nation, the parent company of Ticketmaster.
Here is the most important news investors need to start their trading day:
It turns out that Nvidia is not enough to lead the entire market. O Dow Jones Industrial Average had its worst session in over a year on Thursday, falling more than 600 points, or 1.53%. O S&P 500in turn, fell 0.74%, and the Nasdaq Composite fell 0.39%. This was despite chipmaker and AI darling Nvidia rising more than 9%. With a market capitalization of more than $2.5 billion, it has considerable influence over the S&P 500, but most stocks in the broad market index have turned negative, which may indicate a lack of market breadth. follow live market updates.
An Ether cryptocurrency coin can be seen in this photo illustration.
Jaap Arriens | Nurfoto | Getty Images
The Securities and Exchange Commission enacted a rule change to enable the creation of ETFs that buy and hold Ether. The exchange-traded funds would be similar to bitcoin ETFs, which launched less than six months ago following a separate SEC ruling. Bitcoin ETFs have proven popular, with net inflows already exceeding $12 billion, according to FactSet. Many of the same companies that sponsor bitcoin ETFs, including BlackRock, Bitwise and Galaxy Digital, also hope to launch ETFs for ether, one of the world’s largest cryptocurrencies.
The Live Nation Entertainment logo and business information are displayed on a screen at the New York Stock Exchange (NYSE) in New York, USA, on May 3, 2019.
Brendan Mcdermid | Reuters
The show may soon end for Living Nation. The US Department of Justice is suing to break up entertainment company – the parent company of Ticketmaster – over alleged antitrust violations. Thirty states have joined the DOJ in the lawsuit, which comes after the department’s investigation into whether Live Nation is a monopoly in the ticketing industry. Attorney General Merrick Garland said in a statement that Live Nation “relies on illegal and anticompetitive conduct to exert its monopolistic control over the live events industry in the United States at the expense of fans, artists, small promoters and venue operators.” Live Nation called these claims absurd. Shares closed down more than 7% on Thursday following the news.
Commuters sit in traffic on southbound Interstate 5 during their afternoon commute toward downtown San Diego on March 12, 2024 in San Diego, California.
Kevin Carter | Getty Images
The rapid rise in car insurance costs may actually be slowing down. While the category increased 1.8% in April on a monthly basis and rose 22.6% from the year-ago period – the largest annual increase since 1979 – Bank of America sees some signs of slowing. BofA economist Stephen Juneau said in a note that higher motor vehicle insurance premiums were due to “industry underwriting losses.” As there are “signs that many insurers are returning to profitability,” he and the company believe the rate of premium increases is likely to slow. Additionally, auto insurance has been a major driver of inflation, so if BofA’s forecast is accurate, it could mean the Fed gains more confidence to cut rates later in the year.
The exterior of the Boeing Company headquarters is seen on March 25, 2024 in Arlington, Virginia.
Kevin Dietsch | Getty Images
Fasten your seat belts, Boeing. The company’s CFO, Brian West, said on Thursday that burn money in 2024 and that new plane deliveries will not improve in the second quarter of the year compared to the first. West already predicted a month ago that Boeing would generate free cash flow “in the single-digit billions.” The company has already burned through nearly $4 billion in cash in the first quarter of this year, and West thinks the second quarter number could even be “a little worse.” But he said the turmoil won’t last forever and that Boeing will likely start generating cash again in the second half of the year. Shares fell 7% in afternoon trading following the CFO’s comments.
— CNBC’s Hakyung Kim, Jesse Pound, Tanaya Macheel, Ece Yildirim, Sarah Whitten, Jeff Cox and Leslie Josephs contributed to this report.
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