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5 things you should know before the stock market opens on Friday, May 31
- Former President Donald Trump was found guilty of all 34 criminal charges against him in his silent trial, a historic first for a former US president.
- The Fed’s favorite inflation gauge rose 0.2% in April, as expected.
- Retail stocks saw big moves on Thursday following earnings reports.
Here are five important things investors need to know to start the trading day:
Shares fell Thursday as Sales force sank 20%. The cloud software provider had its Worst day since 2004, after the company reported weaker-than-expected fiscal first-quarter results. O Dow Jones Industrial Average was dragged down by Salesforce and fell 330.06 points, or 0.86%. O S&P 500 lost 0.6%, while the Nasdaq Composite had the worst day, falling 1.08% with weakness in technology names. AI dear Nvidia also fell more than 3%, which was the first drop since last week’s huge earnings report, and Microsoft fell more than 3%. follow live market updates.
Former US President Donald Trump arrives at court for his secret trial at Manhattan Criminal Court in New York City on May 30, 2024.
Justin Lane | Getty Images
Former president donald trump it was found guilty in New York court on Thursday on all 34 felony counts of falsifying business records. The charges were related to a secret payment that his then-personal lawyer, Michael Cohen, made to porn star Stormy Daniels before the 2016 election. Trump is the first former US president to be found guilty of any crime. From him verdict is set for July 11, four days before the start of the Republican National Convention, where Trump will be formally confirmed as the Republican Party’s presidential nominee. Trump is free without bail and can continue campaigning, but could face a maximum possible sentence of four years in prison on each count, although the judge is not required to sentence him to prison. One appeal is almost inevitableand this process can last many months, if not years.
A customer shops at a Target store on May 20, 2024 in Miami, Florida.
Joe Raedle | Getty Images
Friday personal consumption expenses report showed that inflation rose as expected in April. The PCE price index excluding food and energy costs rose just 0.2% in the period, in line with the Dow Jones forecast, and core PCE rose 2.8% on an annual basis, or 0.1 percentage point higher of the estimate. Including volatile food and energy, PCE inflation stood at 2.7% on an annual basis and 0.3% month-on-month, both in line with expectations. PCE is the Fed’s favorite inflation gauge because it takes into account changes in consumer behavior, such as when consumers decide to choose a cheaper option over a more expensive one.
The Gap logo is displayed at a Gap store on April 25, 2023 in Los Angeles, California.
Mario Tama | Getty Images
Retailers had a big day on Thursday, filled with surprising earnings reports and significant stock moves. Kohl’s actions fell more than 20% the next day, the company posted an unexpected loss per share and came in well below Wall Street’s expectations for a slight profit. But other retailers fared better. Foot cabinet saw its shares rise 15%, a sign that its turn around is starting to bear fruit. And actions of Best buy gained 13% after the company missed quarterly sales expectations but beat earnings per share and reiterated its full-year forecast. Breach also saw a big move in shares in its afternoon earnings report. Its shares rose more than 20% in premarket trading after the retailer surpassed earnings estimates and beat the recipe.
Brian Moynihan, CEO of Bank of America, speaking on CNBC’s Squawk Box at the WEF Annual Meeting in Davos, Switzerland, January 16, 2024.
Adam Galici | CNBC
Consumers and businesses have transformed cautious about spending for everything from durable products to software, Bank of America CEO Brian Moynihan said Thursday at a financial conference in New York. There is still some growth as consumer spending through card payments, checks and ATM withdrawals grew about 3.5% this year to about $4 trillion, Moynihan said. But, he noted, this represents a significant drop from the nearly 10% growth rate seen in May 2023. “We have to keep the consumer in the game in the U.S. economy, because [they’re] “They’re getting a little more tenuous, and that’s because of everything that’s going on around them.”
– CNBC’s Alex Harring, Dan Mangan, Kevin Breuninger, Brian Schwartz, Jeff Cox, Gabrielle Fonrouge, Melissa Repko, Sean Conlon and Hugh Son contributed to this report.
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