5 things to know before the stock market opens Wednesday
Here are the most important news, trends and analysis that investors need to start their trading day:
1. Dow futures rise as Wall Street begins June trading
A trader works on the floor of the New York Stock Exchange (NYSE) in New York, US, on Tuesday, May 31, 2022.
Michael Nagle | Bloomberg | Getty Images
Dow futures rose Wednesday morning, as Wall Street begins a new month of trading following a volatile May. Despite that turbulence, the blue chip Dow Jones Industrial Average and the S&P 500 ultimately finished the month essentially flat. The tech-heavy Nasdaq Composite slid 2.05% in May, its fourth negative month in five, as investors balance concerns about high inflation, the Federal Reserve’s response to it and the pace of economic growth. Stocks retreated Tuesday, after being closed Monday for the Memorial Day holiday. The Dow lost about 223 points, or 0.7%, on Tuesday while the broad S&P 500 declined 0.6%. The Nasdaq fell 0.4%. The major U.S. stock indexes are down considerably from their all-time highs. The Nasdaq is 25.5% below its November peak. The S&P 500 and Dow, which both notched their records in early January, are down 14.25% and 10.7%, respectively, from those highs.
2. Oil prices gain; OPEC+ reportedly thinking about suspending Russia from supply deal
Oil pumping jacks, also known as “nodding donkeys,” in a Rosneft Oil oilfield near Sokolovka village, in the Udmurt Republic, Russia, on Friday, Nov. 20, 2020.
Andrey Rudakov | Bloomberg | Getty Images
Oil prices were higher Wednesday, as market participants digest a Wall Street Journal report that some OPEC+ members are considering whether to suspend Russia from the energy alliance’s production deal. Crude futures settled lower Tuesday following the publication of the Journal’s report, giving up gains earlier in the session. On Wednesday, U.S. benchmark West Texas Intermediate crude rose roughly 1.3% to about $116.20 per barrel. Brent crude, the international benchmark, was up by about 1.4% to around $117.20 per barrel. Oil prices have soared this year, as Western sanctions on Russian crude have exacerbated existing concerns about tight supply. Russia’s Energy Ministry and OPEC did not respond to CNBC’s request for comment about the Journal’s report. OPEC and non-OPEC oil producers have a policy meeting scheduled for Thursday.
3. Salesforce earnings top estimates, shares jump
Signage on a Saleforce office building in San Francisco, California, U.S., on Tuesday, Feb. 23, 2021.
David Paul Morris | Bloomberg | Getty Images
4. HP Inc. beats estimates, helped by strong corporate demand
Enrique Lores, CEO, HP
Scott Mlyn | CNBC
HP Inc. posted better-than-expected fiscal second-quarter results after Tuesday’s close, as demand from corporate customers helped offset softer consumer purchases. Shares of the PC maker were basically flat in before-the-bell trading Wednesday. HP earned an adjusted $1.08 per share on sales of $16.49 billion, eclipsing the per-share earnings of $1.05 and $16.17 billion in revenue analysts expected, according to Refinitiv. HP’s total unit shipments in the quarter declined year over year in both of its primary segments: personal systems and printing. However, personal systems revenue rose 9% to $11.5 billion, aided by 18% growth in its commercial business as companies upgraded desktops and workstations. HP CEO Enrique Lores said on the earnings conference call that while consumer demand has softened from its Covid-fueled increase, it remains above pre-pandemic levels. HP’s quarterly report Tuesday was its first since Warren Buffett’s Berkshire Hathaway disclosed a major stake in the company.
5. Mortgage demand slides to lowest level since late 2018
A for sale sign is posted in front of a home for sale on March 18, 2022 in San Rafael, California.
Justin Sullivan | Getty Images
— CNBC’s Sam Meredith and Diana Olick contributed to this report.
— Sign up now for the CNBC Investing Club to follow Jim Cramer’s every stock move. Follow the broader market action like a pro on CNBC Pro.
Here are the most important news, trends and analysis that investors need to start their trading day:
1. Dow futures rise as Wall Street begins June trading
A trader works on the floor of the New York Stock Exchange (NYSE) in New York, US, on Tuesday, May 31, 2022.
Michael Nagle | Bloomberg | Getty Images
Dow futures rose Wednesday morning, as Wall Street begins a new month of trading following a volatile May. Despite that turbulence, the blue chip Dow Jones Industrial Average and the S&P 500 ultimately finished the month essentially flat. The tech-heavy Nasdaq Composite slid 2.05% in May, its fourth negative month in five, as investors balance concerns about high inflation, the Federal Reserve’s response to it and the pace of economic growth. Stocks retreated Tuesday, after being closed Monday for the Memorial Day holiday. The Dow lost about 223 points, or 0.7%, on Tuesday while the broad S&P 500 declined 0.6%. The Nasdaq fell 0.4%. The major U.S. stock indexes are down considerably from their all-time highs. The Nasdaq is 25.5% below its November peak. The S&P 500 and Dow, which both notched their records in early January, are down 14.25% and 10.7%, respectively, from those highs.
2. Oil prices gain; OPEC+ reportedly thinking about suspending Russia from supply deal
Oil pumping jacks, also known as “nodding donkeys,” in a Rosneft Oil oilfield near Sokolovka village, in the Udmurt Republic, Russia, on Friday, Nov. 20, 2020.
Andrey Rudakov | Bloomberg | Getty Images
Oil prices were higher Wednesday, as market participants digest a Wall Street Journal report that some OPEC+ members are considering whether to suspend Russia from the energy alliance’s production deal. Crude futures settled lower Tuesday following the publication of the Journal’s report, giving up gains earlier in the session. On Wednesday, U.S. benchmark West Texas Intermediate crude rose roughly 1.3% to about $116.20 per barrel. Brent crude, the international benchmark, was up by about 1.4% to around $117.20 per barrel. Oil prices have soared this year, as Western sanctions on Russian crude have exacerbated existing concerns about tight supply. Russia’s Energy Ministry and OPEC did not respond to CNBC’s request for comment about the Journal’s report. OPEC and non-OPEC oil producers have a policy meeting scheduled for Thursday.
3. Salesforce earnings top estimates, shares jump
Signage on a Saleforce office building in San Francisco, California, U.S., on Tuesday, Feb. 23, 2021.
David Paul Morris | Bloomberg | Getty Images
4. HP Inc. beats estimates, helped by strong corporate demand
Enrique Lores, CEO, HP
Scott Mlyn | CNBC
HP Inc. posted better-than-expected fiscal second-quarter results after Tuesday’s close, as demand from corporate customers helped offset softer consumer purchases. Shares of the PC maker were basically flat in before-the-bell trading Wednesday. HP earned an adjusted $1.08 per share on sales of $16.49 billion, eclipsing the per-share earnings of $1.05 and $16.17 billion in revenue analysts expected, according to Refinitiv. HP’s total unit shipments in the quarter declined year over year in both of its primary segments: personal systems and printing. However, personal systems revenue rose 9% to $11.5 billion, aided by 18% growth in its commercial business as companies upgraded desktops and workstations. HP CEO Enrique Lores said on the earnings conference call that while consumer demand has softened from its Covid-fueled increase, it remains above pre-pandemic levels. HP’s quarterly report Tuesday was its first since Warren Buffett’s Berkshire Hathaway disclosed a major stake in the company.
5. Mortgage demand slides to lowest level since late 2018
A for sale sign is posted in front of a home for sale on March 18, 2022 in San Rafael, California.
Justin Sullivan | Getty Images
— CNBC’s Sam Meredith and Diana Olick contributed to this report.
— Sign up now for the CNBC Investing Club to follow Jim Cramer’s every stock move. Follow the broader market action like a pro on CNBC Pro.