Saturday, June 22, 2024
HomeBusiness5 things to know before the stock market opens Tuesday, May 14

5 things to know before the stock market opens Tuesday, May 14


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

1. End of a streak

The Dow Jones Industrial Average posted its first loss in nine days. The Dow fell 81.33 points, or 0.21%, while the S&P 500 inched lower by 0.02%, and the Nasdaq Composite added 0.29%. Traders are grappling with inflation expectations ahead of two key reports this week: the producer price index on Tuesday and the consumer price index on Wednesday. Economists polled by Dow Jones estimate the PPI gained 0.3% from the previous month. Follow live market updates. 

2. Meme stocks roar back

Keith Gill, known on Reddit under the pseudonym DeepFuckingValue and as Roaring Kitty, is seen on a fragment of a youtube video displayed on a smartphone screen in front of GameStop logo.

Pavlo Gonchar | Lightrocket | Getty Images

It started out with a post, how did it send it up like this? GameStop shares surged dramatically after “Roaring Kitty,” aka Keith Gill, the retailer trader who drove the GameStop mania of 2021, posted on X for the first time in three years. GameStop shares rocketed 74.4% higher Monday after climbing as much as 110% and getting halted multiple times due to volatility. AMC, another meme stock, also soared 78.4%. And the gains might not stop there. GameStop and AMC jumped more than 50% in premarket trading on Tuesday. Meanwhile, short sellers lost an estimated of $838 million in GameStop Monday, according to data firm S3 Partners.

3. Inflation outlook

A customer moves through the check out lane with his groceries at a Costco Wholesale store on April 3, 2024 in Colchester, Vermont.

Robert Nickelsberg | Getty Images

Consumers expect prices to keep going up both in the near- and long-term. That outlook is fueled by higher inflation in home prices along with fuel and energy, according to a New York Federal Reserve survey released Monday. Respondents to the central bank survey also showed little confidence that the Fed will reach its 2% goal soon. The results mirror those of the University of Michigan sentiment survey released last week, which showed consumer sentiment had slumped.

4. Home Depot dilemma

An employee assists a customer at The Home Depot store on February 20, 2024 in Austin, Texas.

 Brandon Bell | Getty Images 

Home Depot posted first-quarter earnings that beat Wall Street’s expectations and revenue that missed estimates on Tuesday. Shoppers are postponing big projects like bathroom and kitchen remodels as interest rates remain high. The company expects that trend of waiting will continue, Chief Financial Officer Richard McPhail told CNBC. Home Depot reaffirmed its full-year guidance and said it expects total sales to grow about 1% in fiscal 2024, which includes an extra week from the prior year. But it said comparable sales, which remove the impact of store openings and closures, are expected to decline about 1%, excluding that additional week.

5. Disruptor 50

In this photo illustration, the OpenAI logo is seen displayed on a mobile phone screen. 

Idrees Abbas | SOPA Images | Lightrocket | Getty Images

CNBC has rolled out its 12th annual CNBC Disruptor 50 list, which highlights private companies that are chasing some of the market’s biggest opportunities and growing despite a tough capital markets environment. But this year, for the first time ever, a company is repeating as No. 1: OpenAI. Artificial intelligence companies are all over the list, and the company’s ongoing pace of innovation has left established tech giants rushing to catch up. Underscoring that point, on Monday OpenAI launched a new AI model and desktop version of ChatGPT, as well as an updated user interface, its latest effort to expand use of its popular chatbot.

— CNBC’s Lisa Kailai Han, Yun Li, Jesse Pound, Jeff Cox, Melissa Repko, David Spiegel, Julia Boorstin and Hayden Field contributed to this report.

— Follow broader market action like a pro on CNBC Pro.





Source link

RELATED ARTICLES

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Most Popular

Recent Comments

Translate »