5 things to know before stock markets open on Wednesday, May 29

  • The Nasdaq Composite crossed 17,000 for the first time.
  • T-Mobile plans to buy a majority stake in US Cellular.
  • American Airlines lowered its second-quarter outlook.

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

The Nasdaq composite closed up 0.59% for Tuesday’s trading session, crossing the 17,000 threshold for the first time. The index’s surge was boosted by a more than 6% jump in Nvidia, which hit a new high on Tuesday. The S&P 500 similarly ended up 0.02%. In contrast, the Dow Jones industrial average fell 0.55% and was weighed down by declines in Merck and other healthcare names. Follow live market updates.

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

Jakub Borzicki | NoorPhoto | Good pictures

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

Ryan Salem, the former co-chief executive of FTX Digital Markets, walks out of federal court on September 7, 2023 in New York City after pleading guilty to two counts of conspiracy to make illegal U.S. political contributions.

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Brendan McDermidt | Reuters

Another FTX member goes to jail. Ryan Salame, a former top lieutenant of FTX founder Sam Bankman-Fried, was sentenced to 90 months, or seven and a half years, to be followed by three years of supervised release. That was a harsher sentence than the five to seven years prosecutors had recommended and the 18 months the defense had sought. Salameh must pay more than $6 million in forfeiture and more than $5 million in restitution. He He confessed to the crime Last year he was convicted of defrauding the Central Election Commission, conspiring to make illegal political contributions and conspiring to run an unlicensed money laundering business.

An American Airlines Boeing 737 passenger plane taxis from Austin, Texas to JFK International Airport in New York on February 7, 2024 with the Manhattan skyline in the background.

Charlie Tribalev | Afp | Good pictures

American Airlines lowered its second-quarter outlook. The airline said it expects unit revenue to fall by up to 6% from a year earlier. That’s up from $1.15 to $1.45 a share in the period, down from a forecast of $1.15 to $1.15 a share. The cut comes as the airline has already lagged behind rivals Delta and United Airlines in terms of financial performance in recent months. The company is also letting go of its chief commercial officer. Vasu Raja, who spent more than two years in the role, was recently on leave and an airline spokesperson had earlier said he had not left the company. But a person familiar with the matter said that all has changed in the past few days and now the king is expected to step down 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 | Good pictures

Still looking for Gamestop. Shares of the video game retailer rose after the company during the trading session on Tuesday declared It raised nearly $1 billion by selling 45 million shares of common stock. Meme stock closed more than 25% and is up 100% month-to-date. Although the company did not disclose the price at which the shares were sold, they said the transaction was an “in-market” offering. The sell-off comes after “Roaring Kitty” – the man behind the stock’s 2021 short squeeze – posted online earlier this month for the first time in nearly three years, sending the stock up dramatically.

CNBC’s Alex Haring, Pia Singh, Sophie Kitterlin, Todd Hazelton, Sean Conlon, Mackenzie Sikalos and Leslie Josephs contributed to this report.

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