News
5 things you should know before the stock market opens on Wednesday, May 22
- The S&P 500 and Nasdaq Composite closed at new record highs.
- Target missed first-quarter earnings expectations.
- Disney’s Pixar laid off 175 employees, or about 14% of its workforce.
Here is the most important news investors need to start their trading day:
Shares rose on Tuesday as the S&P 500 and the Nasdaq Composite closed with new records, once again. The broad index rose 0.25%, while the Nasdaq rose 0.22% and the Dow rose 0.17%. Investors eagerly await Nvidia’s earnings report on Wednesday. “People don’t [want] lose print share if they show 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 the minutes of its last meeting in April. Follow live market updates.
Customers visit a Target store on May 20, 2024 in Miami, Florida.
Joe Raedle | Getty Images
Target I lost Wall Street first quarter earnings estimates on Wednesday. The retailer’s revenue was in line with expectations, but its sales fell about 3% year over year. Customers, tired of high prices, purchased fewer discretionary items and groceries. CEO Brian Cornell told reporters the company is focused on delivering value. Earlier this week, Target announced it was cutting prices for about 5,000 items, including staples like milk, bread, paper towels and diapers.
The Pixar logo on the main gate of Pixar Animation Studios in Emeryville, California.
Getty Images
Pixar is dismissing around 175 employees – or around 14% of the studio’s workforce – as Disney CEO Bob Iger shifts the company’s focus to quality over quantity. For Pixar, that means ditching Disney+’s short-form series and moving to theatrical releases. It was initially reported that 20% of Pixar employees would be laid off, instead of 14%. These long-awaited hits, which were delayed due to production schedules, follow layoffs at other Disney companies last year.
Google CEO Sundar Pichai takes the stage at the Google I/O developer conference.
Image alliance | Image alliance | Getty Images
Google announced that it is enabling advertisers to promote in style by giving them the ability to use AI for create and use 3D images in your 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 for a particular brand or retailer. The company said brands can also embed videos and product summaries. The announcement arrives a week after Google announced plans to prioritize what it calls “AI Overview” on its search results page, a feature that uses artificial intelligence to summarize information and present it at the top of the page.
Vital Pursuit Herb and Garlic Grilled Chicken Bowl
Source: Nestlé North America
Nestlé is eyeing a new market. The food and beverage giant is launching a frozen food brand aimed specifically at consumers using GLP-1 weight loss medications such as Ozempic or Wegovy. The new brand known as Vital Pursuit includes 12 items ranging from pizzas to frozen bowls with whole grains or pasta. Items will cost $4.99 or less and will include one or more essential nutrients. The program will also include gluten-free options. Vital Pursuit is expected to hit stores in the fourth quarter.
— CNBC’s Hakyung Kim, Melissa Repko, Sarah Whitten, Jennifer Elias and Amelia Lucas contributed to this report.
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