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5 things to know before the stock market opens Wednesday

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May 22, 2024

News Update – Pre-Markets

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

1. Records keep rolling

Stocks ticked higher Tuesday as the S&P 500 and the Nasdaq Composite closed at new records, yet again. The broad index added 0.25% while the Nasdaq rose 0.22% and the Dow climbed 0.17%. Investors are eagerly awaiting Nvidia’s earnings report on Wednesday. “People don’t [want] to miss out on participating on the print if they come out with good numbers,” said Matt Rowe, head of cross asset strategies at Nomura Private Capital. Traders will also be watching as the Federal Open Market Committee releases minutes from its last meeting in April. Follow live market updates.

2. Off target

Customers visit a Target store on May 20, 2024 in Miami, Florida.

Joe Raedle | Getty Images

Target missed Wall Street’s first-quarter earnings estimates on Wednesday. The retailer’s revenue was about in line with expectations, but its sales fell about 3% year over year. Customers, fatigued from high prices, bought fewer discretionary items and groceries. CEO Brian Cornell told reporters that the company is focusing on offering value. Earlier this week, Target announced it was cutting prices for roughly 5,000 items, including staples like milk, bread, paper towels and diapers.

3. Not so magical

The Pixar logo at the main gate of Pixar Animation Studiosin Emeryville, California.

Getty Images

Pixar is laying off about 175 employees — or around 14% of the studio’s workforce — as Disney CEO Bob Iger shifts the company’s focus toward quality over quantity. For Pixar, that means moving away from short-form series for Disney+ and toward theatrical releases. It was initially reported that 20% of Pixar employees were to be laid off, rather than 14%. These long-expected hits, which were delayed due to production schedules, follow layoffs at other Disney businesses last year.

4. Adding to the ads

Google CEO Sundar Pichai takes to the stage at the Google I/O developer conference.

Picture Alliance | Picture Alliance | Getty Images

Google has announced it’s allowing advertisers to promote with style, giving them the ability to use generative AI to create and use 3D images in their ads. With these new tools, advertisers will be able to use what the company calls a “visual brand profile” in the search engine, enabling “richer results” for searches of a particular brand or retailer. The company said brands can incorporate product videos and summaries as well. The announcement comes a week after Google announced plans to prioritize what it dubs “AI Overview” in its search results page, a feature that uses artificial intelligence to summarize information and present it at the top of the page.

5. Food for weight loss

Vital Pursuit’s Garlic Herb Grilled Chicken Bowl

Source: Nestle North America

Nestle has its eyes on a new market. The food and beverage giant is launching a frozen-food brand catered specifically to consumers who use GLP-1 weight-loss drugs like Ozempic or Wegovy. The new brand known as Vital Pursuit includes 12 items ranging from pizzas to frozen bowls with whole grains or pasta. The items are set to be priced at $4.99 or less and will include one or more essential nutrients. The lineup will also include gluten-free options. Vital Pursuit is expected to hit stores by the fourth quarter.

— Tech Zone Daily’s Hakyung Kim, Melissa Repko, Sarah Whitten, Jennifer Elias and Amelia Lucas contributed to this report.

— Follow broader market action like a pro on Tech Zone Daily Pro.