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The Dow rises 100 points as weak consumer sentiment can't stop the rally

May 10, 2024 - qz.com
The Dow Jones Industrial Average remained strong on Friday, despite consumer sentiment reaching a six-month low. The University of Michigan Consumer Sentiment Survey for May was 67.4, significantly below the expected 76. Despite this, the Dow was up 113 points shortly before markets closed. In other market news, Novavax stock surged 97% following a $1.2 billion licensing partnership with Sanofi, while Alphabet stock slipped amid rising competition from OpenAI.

Akamai Technologies was the worst-performing stock on the S&P 500, dropping more than 10% in the late afternoon, despite a 7.8% revenue increase. The company projected a weak outlook for the upcoming quarter, with revenue expected to fall below market consensus. Boeing stock also dropped following news of an SEC probe into the company's safety statements after a door plug blew off an Alaska Airlines-operated 737 Max 9 in January.

Key takeaways:

  • The Dow Jones Industrial Average stayed strong despite consumer sentiment reaching its lowest level in six months, with the University of Michigan Consumer Sentiment Survey for May at 67.4, far below the expected 76.
  • Novavax stock surged 97% following the announcement of a $1.2 billion licensing partnership with French pharmaceutical company Sanofi.
  • Shares of Google parent Alphabet declined amid rising competition from OpenAI, which is reportedly planning to announce an AI-powered search competitor.
  • Akamai Technologies was the worst-performing stock on the S&P 500, dropping more than 10% in the late afternoon, despite reporting strong financials but projecting a weak outlook for the upcoming quarter.
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