Saturday, June 22, 2024
HomeBusiness5 things to know before the stock market opens Tuesday, May 21

5 things to know before the stock market opens Tuesday, May 21

News Update – Pre-Markets

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

1. Tech rally

2. Is Dimon eyein’ the exit?

Jamie Dimon, President & CEO,Chairman & CEO JPMorgan Chase, speaking on CNBC’s Squawk Box at the World Economic Forum Annual Meeting in Davos, Switzerland on Jan. 17th, 2024.

Adam Galici | CNBC

JPMorgan Chase CEO Jamie Dimon signaled Monday that his retirement might be coming sooner than previously anticipated. Dimon, 68, indicated at the bank’s annual investor meeting that he expects his remaining tenure will be less than five years. That’s a change from his previous standard answer, that retirement was perpetually five years away. His ambiguity has made succession timing at JPMorgan a persistent question for the bank’s investors and analysts. Dimon also said the bank would not repurchase shares at their current levels. Shares of the company dropped 4.5% Monday.

3. Lowe’s earnings

An exterior view of a Lowe’s home improvement store at the Buckhorn Plaza shopping center. 

Paul Weaver | Lightrocket | Getty Images

Lowe’s beat Wall Street’s quarterly earnings and revenue expectations on Tuesday and stuck by its full-year guidance. The retailer’s results came even as do-it-yourself customers bought fewer expensive items. For the full year, it anticipates comparable sales will fall between 2% and 3% compared with the prior year. Lowe’s draws fewer professional customers than rival Home Depot, but it’s been trying to win them over. Those professional painters, contractors and other home professionals tend to provide steadier business even when DIY customers pull back.

4. Mayday

A Red Lobster restaurant in San Bruno, Calif.

Getty Images

It’s all hands on deck for Red Lobster. The seafood chain has filed for Chapter 11 bankruptcy protection as it continues shrinking its footprint and trying to find a new buyer to take the helm. The company said its current lenders have made a “stalking horse bid” to buy it out, barring a higher offer from another interested party. Red Lobster CEO Jonathan Tibus blamed the bankruptcy filing on a “difficult macroeconomic environment, a bloated and underperforming restaurant footprint, failed or ill-advised strategic initiatives, and increased competition within the restaurant industry.” The announcement comes about a month after CNBC reported that Red Lobster was looking for a buyer to steer clear of a bankruptcy filing.

5. Keeping up with the kids

Signage of Macy’s, Kohl’s and Nordstrom retail stores.

Getty Images

Fear of aging out? Well, that just may be the case for department stores, with companies like Macy’s, Kohl’s and Nordstrom, facing an existential crisis amid a lack of traffic, a pullback in discretionary spending and slowing sales from younger generations. According to data from market research firm Numerator, baby boomers — those aged 60 and up — make up 40% of Kohl’s customers, 36% of Macy’s customers and 25% of Nordstrom customers. TD Cowen retail analyst Oliver Chen said the retailers have “lost so much ground already,” which makes attracting younger customers even more important. But despite those plans to win new customers, all three retailers have posted weak outlooks for fiscal year 2024. For now, investors will be watching the stores’ earnings results as they come in over the next two weeks.

— CNBC’s Hakyung Kim, Hugh Son, Melissa Repko and Amelia Lucas contributed to this report.

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

Source link



Please enter your comment!
Please enter your name here

Most Popular

Recent Comments

Translate »