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5 things you should know before the stock market opens on Tuesday, May 21
- JPMorgan Chase CEO Jamie Dimon commented on his remaining term.
- Lowe’s quarterly earnings and revenue expectations surpassed.
- Red Lobster has filed for Chapter 11 bankruptcy protection.
Here is the most important news investors need to start their trading day:
Jamie Dimon, chairman and CEO, president and CEO of JPMorgan Chase, speaking on CNBC’s Squawk Box at the World Economic Forum Annual Meeting in Davos, Switzerland, on January 17, 2024.
Adam Galici | CNBC
JPMorgan Chase CEO Jamie Dimon signaled on Monday that his retirement may come sooner than previously anticipated. Dimon, 68, indicated at the bank’s annual investor meeting that he expects his remaining term to be less than five years. This is a change from your previous default answer, that retirement was perpetually five years away. Its ambiguity has made the timing of JPMorgan’s succession a lingering question for the bank’s investors and analysts. Dimon also said the bank would not repurchase shares at current levels. The company’s shares fell 4.5% on Monday.
An exterior view of a Lowe’s home improvement store in the Buckhorn Plaza shopping center.
Paulo Tecelão | Light Rocket | Getty Images
Lowe’s beat Wall Street quarterly earnings and revenue expectations on Tuesday and maintained its full-year guidance. The retailer’s results came even as do-it-yourself customers purchased fewer expensive items. For the full year, it predicts that comparable sales will fall between 2% and 3% compared to the previous year. Lowe’s attracts fewer professional customers than rival Home Depot, but it has been trying to win them over. These professional painters, contractors, and other home professionals tend to provide steadier business, even as DIY customers pull back.
A Red Lobster restaurant in San Bruno, California.
Getty Images
Everything is ready for red lobster. The seafood chain has filed for Chapter 11 bankruptcy protection as it continues to scale back its presence and tries to find a new buyer to take over. The company said its current creditors made a “chase offer” to buy it, preventing a higher offer from another interested party. Red Lobster CEO Jonathan Tibus blamed the bankruptcy filing on a “difficult macroeconomic environment, a bloated and underperforming restaurant footprint, failed or ill-advised strategic initiatives, and increased competition in the restaurant industry.” The announcement comes about a month later CNBC reported that Red Lobster was looking for a buyer to avoid a bankruptcy filing.
Signage for Macy’s, Kohl’s and Nordstrom retail stores.
Getty Images
Afraid of getting old? Well, that might be the case for department stores, with companies like Macy’s, Kohl’s It is Nordströmfacing a existential crisis amid a lack of traffic, a decline in discretionary spending and a slowdown in sales among younger generations. According to data from market research firm Numerator, baby boomers — those ages 60 and older — make up 40% of Kohl’s customers, 36% of Macy’s customers and 25% of Nordstrom customers. TD Cowen retail analyst Oliver Chen said retailers have “already lost a lot of ground”, which makes it even more important to attract younger customers. But despite plans to win new customers, all three retailers have presented weak prospects for fiscal 2024. For now, investors will be keeping an eye on store earnings results as they come in over the next two weeks.
— CNBC’s Hakyung Kim, Hugh Son, Melissa Repko and Amelia Lucas contributed to this report.
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