June 20, 2024

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5 things to know before the stock market opens on Wednesday, May 29

5 things to know before the stock market opens on Wednesday, May 29
  • The Nasdaq Composite surpassed 17,000 for the first time.
  • T-Mobile plans to acquire most of US Cellular.
  • American Airlines lowered its forecast for the second quarter.

Here are the most important news investors need to start their trading day:

The Nasdaq Composite closed 0.59% higher during Tuesday’s trading session, crossing the 17,000-point threshold for the first time. The index’s rise was fueled by a more than 6% jump in Nvidia, which also set a new record on Tuesday. The S&P 500 index closed only 0.02% higher. By contrast, the Dow Jones Industrial Average fell 0.55% and was weighed down by a decline in shares of Merck and other health names. Follow live market updates.

The T-Mobile logo is seen in Miami, USA, on May 2, 2024.

Jakub Purzycki | norphoto | Getty Images

The connection to US Cellular is now being restored. T-Mobile announced Tuesday that it plans to acquire most of US Cellular — including its wireless carrier stores, some spectrum assets and its customers — in a deal worth about $4.4 billion. T-Mobile is set to take about 30% of US Cellular’s wireless spectrum, and US Cellular plans to lease space to T-Mobile on at least 2,100 additional towers. The deal also includes up to $2 billion in debt. The announcement comes after T-Mobile acquired Ka’ena – the parent company of Mint Mobile – for $1.35 billion. Back in 2020, T-Mobile completed a $26 billion merger with Sprint.

Ryan Salama, former co-CEO of FTX Digital Markets, walks out of federal court after pleading guilty to two charges including conspiracy to make illegal US political contributions, in New York City, September 7, 2023.

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Brendan McDiarmid | Reuters

Another FTX member is going to prison. Ryan Salama — the former top lieutenant of FTX founder Sam Bankman Fried — was sentenced to 90 months in prison, or seven and a half years, followed by three years of supervised release. This is a harsher sentence than the five to seven years in prison proposed by the prosecution, and the 18 months requested by the defence. Salama must also pay more than $6 million in forfeiture and more than $5 million in restitution. he Admission of guilt Last year on charges of defrauding the Federal Election Commission, conspiring to make illegal political contributions, and conspiring to operate an unlicensed money transmitting company.

An American Airlines Boeing 737 airliner arrives from Austin, Texas, to JFK International Airport in New York as the Manhattan skyline looms in the background on February 7, 2024.

Charlie Tripalo | AFP | Getty Images

American Airlines lowered its forecast for the second quarter. The airline said it expects unit revenue to decline by up to 6% compared to the same period last year. It also lowered its adjusted earnings estimate for the period to an expected range of $1 to $1.15 per share — down from the previous range of $1.15 to $1.45 per share. The reduction comes at a time when the airline has already been lagging rivals Delta and United Airlines in recent months in terms of financial performance. The company will also let go of its chief commercial officer. Vasu Raja, who spent more than two years in the position, was recently on leave, and an airline spokeswoman had previously said he would not be leaving the company. But a person familiar with the matter said that everything has changed in the past few days, and now Raja is expected to leave his post next month.

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Traders walk on the floor during morning trading at the New York Stock Exchange (NYSE) on May 14, 2024 in New York City.

Spencer Platt | Getty Images

Things are still looking up for GameStop. Shares of the video game retailer rose during Tuesday’s trading session after the company Announce It made nearly $1 billion from the sale of 45 million common shares. The meme stock closed up more than 25% and is up more than 100% since the beginning of the month. While the company did not disclose the price at which the shares were sold, it said the deal was an “at market” offer. The sale comes after “Roaring Kitty” — the person behind the stock’s 2021 short squeeze — went viral online earlier this month for the first time in about three years, sending shares skyrocketing.

CNBC’s Alex Haring, Pia Singh, Sophie Kiderlein, Todd Haselton, Sean Conlon, Mackenzie Sigalos Leslie Josephs contributed to this report.

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