5 things to know before the stock market opens on Thursday

Here are the top news, trends and analysis that investors need to start their trading day:

1. Stock futures rallied as Wall Street looks to break losing streaks

Traders work on the floor of the New York Stock Exchange (NYSE) on May 18, 2022 in New York City.

Spencer Platt | Getty Images

US stock futures rose on Thursday, the morning after the release of a key earnings report from semiconductor giant Nvidia. The three major stock indices are trying to break a long series of weekly declines and are on track to do so before entering the Thursday session. The Dow Jones Industrial Average, up 2.8% this week, was in the midst of its first eight consecutive weeks of losses since 1923. The S&P 500 and Nasdaq Composite each posted seven consecutive weeks of losses. These indices are up 1.98% and 0.7% weekly so far, respectively. Stocks rose on Wednesday, led by the Nasdaq, up 1.5%.

In the bond market, the yield on the benchmark 10-year Treasury was hovering around 2.756% Thursday morning, up slightly by 1 basis point. Yields move opposite prices. The base point is 0.01%. The muted move in Treasury yields comes after the release of the minutes of the Federal Reserve’s May meeting on Wednesday.

2. Nvidia shares drop in light of guidance; Snowflake also slides

Jensen Huang, Nvidia President and CEO, speaks during the company’s event at CES 2019 in Las Vegas on Jan. 6, 2019.

David Paul Morris | Bloomberg | Getty Images

Nvidia shares fell more than 4% in pre-market trading, the day after the California-based semiconductor company issued lighter-than-expected guidance for its current quarter. Chief Financial Officer Colette Kress also noted Nvidia’s plans to slow hiring and control expenses in the face of a challenging macro environment. In its fiscal first-quarter results, Nvidia reported earnings per share of $1.36 and revenue of $8.29 billion, beating Wall Street expectations for both metrics. Investors had been anticipating Nvidia’s results as they looked for evidence of tech industry strength amid fears of a broader economic slowdown; Semiconductors have historically been a cyclical industry. Nvidia shares are down about 42% year-to-date and more than 50% from their November high.

Frank Slotman, CEO of Snowflake Inc. On September 16, 2020.

CNBC

Snowflake shares fell more than 14% in premarket trading in the morning after the data analytics software maker released earnings and guidance. Wall Street did not expect Snowflake to say it expects -2% adjusted operating margins for the current quarter, which could contribute to the stock’s slide. Analysts polled by StreetAccount had expected an adjusted margin of 0.3%. Snowflake shares are down more than 65% from their November highs, exemplifying the market’s shift away from fast-growing, money-losing companies as the Fed signaled a policy tightening ahead.

3. Messi beats profits and sales, increases profit expectations

A pedestrian carries a Macy’s Inc. branded shopping bag. Outside the company’s flagship store in the Herald Square district of New York, US, on Tuesday, November 17, 2020.

Victor J Blue | Bloomberg | Getty Images

Macy’s raised its full-year earnings guidance Thursday, after reporting fiscal first-quarter earnings and sales that beat Wall Street expectations. Shares of the supermarket chain jumped about 15% in the primary market. In the first fiscal quarter, Macy’s earned $1.08 per share on revenue of $5.35 billion. Analysts polled by Refinitiv expected earnings per share of 82 cents on sales of $5.33 billion. Macy’s is the latest retailer to report this earnings season, which has been a mixed bag for the industry. Companies like Target and Abercrombie & Fitch disappointed investors, while Nordstrom and Williams-Sonoma beat expectations.

4. Apple to increase the salaries of corporate and retail employees

The iPhone maker said late Wednesday that Apple plans to raise salaries for retail and corporate workers later this year. Other tech giants, such as Microsoft and Alphabet, the parent company of Google, have adjusted their reward structures recently, as companies compete to retain talent in the historically narrow US job market. Workers are also having to contend with the hottest inflation in the US since the early 1980s. As part of its announcement on Wednesday, Apple said its initial pay for US retail employees will become $22 an hour, up from $20; The initial payment in stores in some regions will be even higher. The increase in retail wages comes as workers at some Apple stores across the country have embarked on union efforts.

5. Broadcom says it plans to buy VMware in a $61 billion deal

In this photo illustration, the VMware logo is displayed on a smartphone screen.

Rafael Henrique | soba pictures | Light Rocket | Getty Images

Broadcom intends to buy VMware in one of the largest technology acquisitions in history, the two companies announced Thursday morning. The cash and stock deal is valued at about $61 billion, based on where Broadcom shares closed Wednesday’s session at $531.63. The planned transaction will help Broadcom further diversify away from its traditional business of designing and selling semiconductors into the world of higher-margin enterprise software. Broadcom, which made multibillion-dollar acquisitions in 2018 and 2019, expects to close the VMWare deal in fiscal year 2023; The company is currently in the third quarter of 2022.

Editor’s note: CNBC’s “Five Things to Know” will be closing Friday.

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