Traders work on the trading floor of the New York Stock Exchange on the afternoon of January 22, 2024 in New York City. The Dow and S&P both hit record highs, with the Dow closing above 38,000 points for the first time as stocks continued to rise.
Michael M. Santiago | Michael M. Santiago Getty Images News | Getty Images
This report comes from today’s CNBC Daily Open, our international markets newsletter. CNBC Daily Open keeps investors updated on everything they need to know, no matter where they are. Like what you see? You can subscribe here.
What you need to know today
Trump found guilty in hush money trial
A New York jury convicts former president Donald Trump All 34 felony counts involving falsification of business records Pay hush money arrive porn star stormy daniels It was filed by his then-personal lawyer before the 2016 election. Trump is the first former U.S. president to be convicted. His sentencing is scheduled for 10 a.m. ET on July 11, just four days before the Republican National Convention in Milwaukee, where Trump is expected to be confirmed as the Republican presidential nominee. Trump remains free without bail, with each count punishable by up to four years in prison.
Saleforce shares fall
Wall Street closes lower back sales force Worst day in twenty years. this Dow Jones Industrial Average Down 330 points. this S&P 500 Index and Nasdaq Index Both sides lost ground. Nvidia fell for the first time since last week’s earnings report Microsoft Worst day since October. 10-Year Treasury Bond Yield Ministry of Finance slipped Less than 4.6% But it’s still above 4.5%, a level at which investors might consider moving out of stocks in search of better returns elsewhere. US oil prices Down 1% and on track to hit target worst month of the year As gasoline demand remains weak.
Dell slides despite AI growth
shares Dell It fell as much as 20% in after-hours trading. First-quarter profit met Wall Street expectations. Still, Dell’s stock price has more than doubled ahead of Thursday’s earnings report. The company has become a leading provider of artificial intelligence-oriented servers, which are in high demand as enterprises invest in predictive analytics and the infrastructure that generates artificial intelligence.
Salesforce plunges
shares sales force Their share price plummeted more than 20% Worst trading day in 20 yearscloud software company Reported results weaker than expected. Citi analysts lowered their price target on the stock to $260 from $323. “We are content to wait and wait for more evidence of growth improvement or data cloud/GenAI momentum/monetization,” the analysts wrote.
football player
Foot cabinetAs shares of the sneaker retailer surge more than 30% Turnaround plan Achieved better-than-expected comparable sales. “We got off to a strong start in the first quarter, which shows our Lace Up program is working,” CEO Mary Dillon Said in an interview with CNBC.
(PRO) Nvidia’s largest customer
Thanks to its hot-selling chips that power artificial intelligence models, Nvidia’s stock price has risen 130% so far this year, and its market value is heading toward $3 trillion. But who is buying Nvidia’s chips? An investment bank believes One customer accounts for one-fifth of revenue.
bottom line
Want to gauge the health of the U.S. economy? Ask retail executives. After all, consumer spending is the lifeblood of the economy, accounting for about two-thirds of GDP.
“Customers have been under pressure; prolonged inflation, interest rates affecting everything from home repayments to student loans, dwindling savings… Our customers are willing to pay full price and they can be very picky about how they spend their money, how about that.” Foot Locker CEO Mary Dillon Said in an interview with CNBC.
This earnings season highlights Dillon’s point. Although retailers like Foot cabinet, Best Buy, Dollar Generaland American Eagle Apparel They beat profit expectations and their revenue was essentially at or below analysts’ expectations. This shows that companies must work harder to appeal to increasingly wary consumers, who are now more picky about where and when they spend their hard-earned money.
The broader economic picture has also lost some of its luster since late last year. The Ministry of Commerce lowered the GDP growth rate in the first quarter to 1.3%, a sharp decrease from the original forecast of 1.6%. The most important part of this may be the fall in consumption, which fell from 2.5% growth to 2%.
April’s Pending home sales plummet It fell to the lowest level since the epidemic, further highlighting the plight of consumers.
New York Fed President John Williams on Thursday reiterated the central bank’s recent statement: Inflation remains too high. Regarding interest rates, he said: “I do think monetary policy is restrictive and is bringing a better balance to the economy. So I think based on data analysis, at some point, domestic interest rates in the United States will eventually need to come down.” But. The timing will depend on how well you achieve your goals.
The Federal Reserve’s inflation target remains at 2%, and investors will pay close attention to Friday’s Commerce Department inflation data. The personal consumption expenditures price index, the Fed’s preferred inflation number, is expected to be 2.7% in April, according to Dow Jones estimates.
It’s not just the market that’s eager for a rate cut; Retailers also need consumers to open their wallets, and that can only happen if they feel the Fed has their backs.
— CNBC’s Dan Mangan, Jeff Cox, Alex Harring, Hakyung Kim, Leslie Josephs, Robert Hum, Diana Olick, Spencer Kimball and Yun Li contributed to this report.
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