Stock market today Dow 40,000: Live updates

Richmond Federal Reserve President Thomas Barkin said Thursday that he was encouraged by the consumer price index report the previous day but sees more work ahead to get back to the central bank’s goal of 2% inflation.

“On the inflation side, it certainly came off the numbers of the prior few months, which was good. It’s still not where we’re trying to get to target,” the central bank official said during a CNBC “Squawk on the Street” interview.

“I do believe we’re on the right path here. I do believe inflation is coming down on the big picture,” he added of data showing CPI inflation running at a 3.4% annual rate. “My point is only to get to 2% sustainably in the right kind of way. I just think it’s going to take a little bit more time.”

Harkin is a voting member this year on the rate-setting Federal Open Market Committee.

Check out the companies making headlines in midday trading:

Meta — Shares pulled back 1.3% after the European Union opened a probe into the company regarding child safety concerns on social media platforms Facebook and Instagram.

Deere — Deere shares slipped about 3% after the maker of agricultural equipment cut its full-year guidance. The company said it now expects net income of roughly $7 billion, down from a range of $7 billion to $7.5 billion.

Walmart — Shares rallied nearly 6% after the company reported adjusted first-quarter earnings of 60 cents per share, topping the 52 cents expected from analysts polled by LSEG. Revenue was $161.5 billion, beating the $159.5 billion consensus estimate. Walmart said it made big gains in e-commerce and won over more high-income shoppers.

The full list can be found here.

— Hakyung Kim

The Dow Jones Industrial Average crossing above 40,000 for the first time on Thursday could add fuel to the flames for the current bull rally, according to Independent Advisor Alliance Chief Investment Officer Chris Zaccarelli.

“Breaking the 40,000 barrier is a big psychological boost for the bulls as round numbers hold special significance in people’s hearts and minds,” he said in an email. “We are in a Bull Market and people are showing some irrational exuberance (meme stocks) and dismissing bad news (slowing retail sales) and focusing on good news (slightly slowing inflation).”

Zaccarelli adding a warning that the market is now heading into “overvalued territory,” making it even more important for investors to become especially discerning when investing in equities.

— Lisa Kailai Han

Advertising technology stocks popped Thursday, a day after Netflix announced it plans to roll out its own ad platform and partner with Google Display & Video 360, The Trade Desk and Magnite.

The Trade Desk added 5%, while Magnite shares rallied 28% and headed for their best day since November 2022. Alphabet shares were last up 1%.

Wall Street views the partnership as a boon for these ad-tech stocks, with Citi’s Citi’s Ygal Arounian estimating that it could add $500 million to The Trade Desk’s 2025 gross billings.

Netflix aims to start testing the platform in Canada later this year, and roll out the offering worldwide by the end of next year.

Read more on what the partnership means for this under-the-radar stock here.

— Samantha Subin

All three major stock averages ripped to new intraday highs Thursday morning, with the Dow Jones Industrial Average crossing over 40,000 for the first time in history.

Baird analyst Ross Mayfield attributed the strong earnings season as providing another leg for the market rally to stand on in recent weeks.

“This has all the signs of a cyclical bull market and it’s not running out of steam as far as we can tell,” he told CNBC in an interview.

— Lisa Kailai Han

The 30-stock Dow reached a fresh milestone Thursday morning, surpassing the 40,000 threshold.

At its high of the session, the average touched 40,002.75, climbing about 0.2%.

Walmart shares helped lift the price-weighted index to its fresh high, as the big-box retailer jumped more than 6% following a fiscal first-quarter beat on the top and bottom lines.

The Dow’s new high follows a day after the three major averages closed at fresh records.

— Darla Mercado