Stock Groups

5 things to know before the stock market opens Wednesday, May 18


These are the top news, trends, and analyses that traders need in order to get started with trading.

1. Inflation claims another retailer and stock futures drop

Traders in the NYSE Floor, May 17th 2022.

Source: NYSE

U.S. stock futuresTuesday’s drop was due to rising inflation that hammered another retailer. TargetThe premarket fell more than 20% shortly after an earnings disappointment. A similar profit picture at WalmartTuesday’s announcement was made. Close to 11.4% of Dow stocks closed lower in the Dow’s worst session since 1987. Walmart stocks lost an additional 1.5% Wednesday premarket. The main driver of inflation spikes is energy prices. U.S. oil pricesOn Wednesday, the price rose 2.5% topping $115 per barrelOnce again.

Walmart is still a great company despite its problems Dow Jones Industrial AverageThe Tuesday gain was 431 points, or 1.3% The S&P 500And the NasdaqWall Street gained nearly 2.8% and 2%, respectively. latest attempt at a recoveryAfter weeks of sharp losses, the Nasdaq was back in a bear market. According to the Nasdaq, the bear market was still being observed if it fell 20% or more than its peak. The Dow and S&P 500 were still in corrections, defined by a decline of 10% or more from prior highs.

2. Target gets slapped Wednesday for a major earnings misstep

On May 11, 2022, New York City employees assist customers in the supermarket checkout.

Liao Pan | China News Service | Getty Images

Target shares plunged in premarket trading after Wednesday’s adjusted earnings report. fell well short of estimates. Profitability was limited by high freight costs, lower markdowns and lower sales of discretionary goods such as TVs or bicycles. Like WalmartTarget’s Tuesday revenue was higher than expected, citing inflationary and higher inventory costs. Target reiterated the sales forecast that calls for a mid-single-digit percentage growth this year.

3. Lowe’s also facing pressure due to weaker than expected sales

A collection of pallets of gardening materials are stacked on the lot of a Lowe’s in San Bruno, California.

Bloomberg | Bloomberg | Getty Images

Unlike Home Depot’A strong quarter, and direction a day before, rival Lowe’sOn Wednesday, the first quarter revenue was reported. missed expectations. Premarket shares of Lowe fell 2% Cooler spring temperatures slowed demand for products for DIY projects outdoors. Home Depot held upPro sales outpaced DIY. Lowe’s receives approximately 75% to 88% of its total sales through DIY customers. However, earnings beat that figure. It reiterated its outlook for full-year sales of $97 billion to $99 billion.

4. Fed chief Powell is tough about rates, slowing down housing data

Lumber on the spot of a house being built in Cielo At Sand Creek housing development by Century Communities in Antioch (California), U.S.A.

Bloomberg | Bloomberg | Getty Images

Government’s April housing starts and building permitsReport out at 8:30 AM. ET is expected to report a decrease in building activity. The annual rate at which housing starts declines by 2.4% to 1.75 Million units per year is what economists anticipate. In March, housing starts were 0.3% higher than in March. The April number of building permits fell by 2.8% to 1.82 millions. In March, permits rose by 0.4%

  • Weekly mortgage demandHomebuyers plunged 12% due to higher rates. This was the first weekly decline in over a month. Consumers aren’t getting flush due to inflation. The week saw a 10% decline in refinance applications.

The 10-year Treasury yield rose Wednesday, right around 3%. Federal Reserve Chairman’s comments explain why the benchmark yield is strong Jerome Powell. Powell spoke Tuesday in an interview with Wall Street Journal that Powell believed the central bank was a good place to be. won’t hesitateKeep increasing the interest rate until inflation drops.

5. Jamie Dimon, CEO of JPMorgan sends message to investors about pay

Jamie Dimon, CEO of JP Morgan, speaks at the Boston College chief executives club luncheon, Boston, Massachusetts (USA), November 23, 2021.

Brian Snyder | Reuters

JPMorgan Chase’s Jamie DimonA rare reproach was delivered to me late Tuesday night by shareholders expressed their disapprovalRetention bonus of $52.6 Million Only 31% investors participated in JPMorganThe award was part of the 2021 compensation package for the CEO and chairman. It is intended to retain him as the CEO for five more years. Although the vote wasn’t binding, JPMorgan said that it values investor feedback and intends Dimon’s bonus as a once-in-a-lifetime event.

— CNBC’s Sarah Min, Pippa Stevens, Melissa RepkoAnd Hugh SonThis report was contributed by you.

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