Here are the most important news items that investors need to start their trading day:
1. Looking good
It’s the last week of May, and stocks are on track to close out the month on a strong note. The S&P 500 has added 5.3% so far in May, while the Nasdaq Composite has rallied about 8%, after ending last week at a fresh record high. The Dow Jones Industrial Average, meanwhile is up 3.3% for the month and topped 40,000 for the first time ever in May. This week, investors will be watching for inflation data as the April personal income and expenditures report, which includes the PCE inflation reading, is set to drop on Friday. Follow live market updates.
2. Retail time
Aerial view of the new store of Costco on March 6, 2024 in Nanjing, Jiangsu Province of China.
Fang Dongxu | Visual China Group | Getty Images
It’s a shortened trading week and a short week for earnings. A few retail companies are reporting this week, including Costco Wholesale, Ulta Beauty and Dollar General. Those stocks could give more clarity on the state of the consumer and the economy. Software names HP and Salesforce are also coming up. Here are the earnings to watch this week:
Wednesday: Dick’s Sporting Goods, Abercrombie & Fitch (before the bell); Salesforce, HP (after the bell)
Thursday: Foot Locker, Dollar General, Best Buy, Kohl’s (before the bell); Ulta Beauty, Dell Technologies, Nordstrom, Costco Wholesale, Gap (after the bell)
3. Digital get down
Kim Gradwell with an Ozempic injection needle at her home in Dudley, North Tyneside, Britain, October 31, 2023.
Lee Smith | Reuters
Anti-obesity medications are entering a new frontier. Digital health companies including Calibrate, Ro, Hims & Hers, Teladoc Health and WeightWatchers are aiming to take advantage of the growing popularity of GLP-1s by building programs and services for users on top of the medications. GLP-1s are the buzzy class of obesity treatments like Wegovy and Ozempic, as well as Zepbound and diabetes treatment Mounjaro. The opportunity could be huge: Goldman Sachs estimates 15 million American adults could use such drugs by 2030, and analysts also predict the industry could reach $100 billion in annual revenue by that time. But there are concerns. Companies are also facing supply shortages, as well as spotty insurance coverage and a concern about counterfeit products.
4. Going on a deal hunt
A T.J. Maxx store in Pasadena, California.
Mario Anzuoni | Reuters
Off-price retailers like TJX Companies and Ross won’t be slowing down any time soon. Customers have been under pressure as prices keep climbing for food and other essentials — leading many to search for deals and prioritize value when it comes to discretionary spending. Consumers, and younger shoppers in particular, are also becoming more comfortable with shopping at discounters. “They have trusted brands at a cheaper price. They’re more on-trend, they’re designer-led, they lean into categories that the customer is much more interested in,” said Jessica Ramirez, a senior research analyst with Jane Hali & Associates. Both retailers recently beat quarterly revenue and earnings expectations and are poised to keep growing, even against tough comparisons.
5. Movie magic
4DX is a 4D film presentation system developed by CJ 4DPlex, a subsidiary of South Korean cinema chain CJ CGV. It allows films to be augmented with various practical effects, including motion-seats, wind, strobe lights, simulated-snow, and scents.
CJ 4DPlex
We come to this place for immersive experiences. Many consumers are out of the habit of going to see movies in the theater after pandemic-related shutdowns and stalled production from two Hollywood strikes vastly limited the number of films hitting the big screen. But those who returned are looking for premium experiences. That’s where 4DX — which offers motion seats, practical effects and sensory elements to immerse viewers in a movie — comes in. For “Wonka,” there was a chocolate scent and the new Mad Max film “Furiosa” has red fog piped in. The 4DX experience costs an average of $8 more than traditional ticket prices, but that doesn’t seem to deter moviegoers, as 4DX’s domestic locations brought in $53.4 million in ticket sales last year.
— CNBC’s Pia Singh, Sarah Min, Annika Kim Constantino, Ashley Capoot, Gabrielle Fonrouge and Sarah Whitten contributed to this report.
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